Legislative Update | February 14, 2025
Posted: Feb 14 2025
This Week at the Legislature
Today on Valentine’s Day, let’s remember that love is a lot like passing a bill in the legislature— it takes patience, compromise, and sometimes, a little sweet-talking to get everyone on board!
In the spirit of week 6, the Appropriations chairs are still holding a tight leash on spending, setting the table and sharpening their negotiating positions for the second half. Policy chairs are already scheduling bill hearings for those bills that have passed across the hall from the opposing chamber. They are eager to save days and get done early.
Next week is a big one for amendments to budget bills, when the sausage gets made and the long sheets (appropriation budget tracking) get longer. The biggest budgets – ND Health and Human Services, Higher Education, Department of Corrections, Commerce, Department of Water Resources—will be some of the final bills discussed in either chamber before crossover.
NDBA Bank Management Conference & Legislative Reception
NDBA’s Bank Management Conference kicked off the morning of February 12 with a joint meeting of the NDBA Board and Legislative Committee. NDBA’s Rick Clayburgh gave the group an overview of the legislative session so far and, most importantly, got member input on bills affecting banking interests.
After the meeting, bankers participated in the NDBA Bank Management Conference, where they heard and interacted with experts who provided 1) insight into the future of community banking; 2) an outlook on the economy, Fed policy and its impact on community banking; 3) the new leadership’s priorities and their impact on Washington DC; and 4) how fraud and scams are impacting North Dakotans. ABA’s Jess Sharp, NDBA’s Rick Clayburgh, and Christie Huber Obenauer of Union State Bank in Hazen discussed banking issues at the national level. In addition, North Dakota Governor Kelly Armstrong spoke, ND DFI Commissioner Lise Kruse provided an update, and NDBA’s Rick Clayburgh and GA Group’s Levi Andrist gave a legislative update.
That evening, bankers gathered with legislators at the North Dakota Heritage Center for NDBA’s Legislative Reception.
Hearings and Other Action this Week
SB 2364 – UCC Article 8
The Senate Judiciary Committee heard SB 2364 Tuesday morning. SB 2364 was sponsored by Sen. Mark Enget and relates to UCC Article 8’s choice of law, the property interest in a financial asset held by a securities intermediary, priority among security interests and entitlement holders, and the law governing perfection and priority of security interests in investment property. Sen. Enget introduced the bill because he believes Article 8 has the potential to allow a securities intermediary to revoke an entitlement holder’s property right in times of financial distress. There were three others who testified in support, including the author of the book the “Great Taking”. NDBA’s Rick Clayburgh opened opposition testimony by introducing Benjamin Orzeske, Chief Counsel for the Uniform Law Commission, who explained the information proved by the proponents was false and misleading. He further explained that a broker that holds your securities is not allowed to use your securities as collateral without your permission. The only time is when the owner consents. This happens when people have margin accounts, or when there is a short sale. Clayburgh added that the passage of this bill will make ND a non-uniform state and create many unintended consequences for North Dakota investors. DFI Commissioner Lise Kruse also testified in opposition, stating that passage of the bill would be detrimental to anyone having investments with banks or trust companies and that it would negatively affect companies who are offering the ability to transact with crypto; and would make crypto staking hard to offer in, North Dakota. Due to time constraints, ND Securities Commissioner Tim Karsky and ICBND’s Alexis Baxley offered written testimony in opposition. The hearing was closed without committee action.
HB 1584 – Pharmacy Benefit Managers
The House Industry Business and Labor Committee heard HB 1584 Tuesday afternoon. HB 1584 was sponsored by Rep Jim Kasper and relates to pharmacy benefits managers (PBMs) and is intended to remove the statutory protection for Employee Retirement Income Security Act (ERISA) health plans thereby allowing modifications to PBM laws for the benefit of pharmacies. PBMs are intermediaries who sit between individuals and their health plans. PBMs enter contracts with benefit plans and insurers to provide beneficiaries with access to prescription drugs. HB 1584 seeks to put self-funded health plans organized under the federal ERISA laws from the definition of “covered entity,” subjecting them to state imposed healthcare mandates which would include restrictions on how PBMs contract. Mike Schwab of the North Dakota Pharmacy Association suggested language that defined “pharmacy benefit manager” not to include health benefit plans that manage their own pharmacy benefits. NDBA’s Rick Clayburgh, representing NDBanks Benefit Trust, testified that the Pharmacy Association amendment would not protect health plans like NDBBT since they don’t manage their own pharmacy benefits. The committee did not act on the bill.
Hearings The Week of February 17, 2025
2/17/2025 9:00 AM
HB 1152
Relating to the definition of residential property to Include garages, barns, and storage buildings not located on the same parcel as a dwelling, used in connection with residential use.
Senate Finance and Taxation
Tracking
2/17/2025 10:30 AM
HB 1232
Relating to the definition of residential property. Requested by county tax assessors, a vacant lot within residentially zoned area, the property will be assessed as residential property and not commercial.
Senate Finance and Taxation
Tracking
2/17/2025 3:00 PM
HB 1176
Governor’s Property tax proposal. The bill provides the framework for a $483.4 million property tax credit plan, funded by both the General Fund and the Legacy Earnings Fund to provide a total primary residence credit of $1,550 per qualifying residence per year for the 2025-27 biennium.
House Appropriations
Priority
2/17/2025 3:30 PM
HB 1080
Relating to the regulation of appraisal management companies. The brings the state’s appraisal
management company licensing program into compliance with federal requirements.
Senate Industry and Business
Tracking
2/20/2025 11:00 AM
SB 2315
Relating to restrictions on legislative lobbyists. Prohibits registered lobbyists from entering the chambers of the House or Senate during a legislative session. A violation is a class B misdemeanor.
Senate State and Local Government
Tracking