Legislative Update | February 7, 2025
Posted: Feb 07 2025
This Week at the Legislature
We’re a quarter of the way done! Public hearings are less frequent, and committee work and floor debates increase in frequency. Today is legislative day 22. While some of the kinks in the legislative process are getting worked out, there are still a few catch 22s regarding the allowance of virtual testimony and when public notice is given for bill hearings and committee work. But that’s not as interesting as the 22nd amendment to the U.S. Constitution, ratified in 1951, which limits the President of the United States to two terms in office, which has significantly shaped modern politics. Term limits in North Dakota have already proven, in our opinion, to be problematic—leading to two legislative proposals to change them. We might even suggest that term limits for North Dakota legislators is itself a catch 22!
This week and the next couple weeks will be primarily focused around the idea of refinement. Any bill with a fiscal impact must be sent to the appropriations committees by Monday and Thursday next week, for the House and Senate, respectively. The funnel of legislative activity will be more and more focused on money bills, with the appropriations committees attempting to pre-balance the budget the first half—all bills introduced together overspent the projected revenue by a few billion dollars.
Hearings and Other Action Week of February 3
UPDATE: House Defeats HB 1378 – Escrow Account Interest
Monday afternoon, after an intense lobbying effort by NDBA, ICBND, the credit unions, and the ND Realtors, the North Dakota House defeated HB 1378, which would have required interest be paid on escrow accounts, by a vote of 14-78-2. NDBA would like to thank Representatives Steve Swiontek, Dan Vollmer, Scott Louser and Larry Klemin, who gave floor speeches in opposition. Most importantly, thank you to all who contacted their legislator to vote no on the bill. Banker contacts once again proved vital in defeating this bill.
UPDATE: SB 2028 – Budget Approval Process for the Department of Financial Institutions
The House Industry Business and Labor Committee acted on SB 2028 Tuesday afternoon. Representative Ben Koppelman moved an amendment to add a four-year sunset to the bill which moves the budget oversight of the department to the State Banking and State Credit Union Board. The amendment was adopted by voice vote and a do pass motion passed by an 8-3-3 vote. The full House passed the bill Thursday afternoon by a 59-34-1 margin. The bill now heads back to the Senate for approval.
UPDATE: HB 1507 – Establishment of a Cooperative Bank Charter
The House Industry Business and Labor Committee acted on HB 1507 Wednesday afternoon. Representative Dan Vollmer offered and explained some technical amendments. DIF Assistant Commissioner Corey Krebs testified to answer technical questions of the committee on behalf of the Department of Financial Institutions. The amendments were adopted by voice vote and a do pass motion passed by an 8-2-4 vote. The bill now awaits full House action.
SB 2356 – Contents of a Legal Description for a Deed
The Industry and Business Committee heard SB 2356 Monday afternoon. SB 2356 was introduced by Senator Scott Meyer at the request of the Land Title Association. Meyer explained the bill was introduced to address an issue that arises when a county auditor asks the county recorder to reject the recording of a deed on the sale of property that has been previously recorded in order to replat the property. Nick Hacker testified in support of the bill on behalf of the Land Title Association. Hacker explained that the county has the right to require property owners to plat property, but does not have the right to request the rejection of the recording of the deed for that purpose. He explained that when a county rejects the recording of a deed, it causes lien risks for the new owner because North Dakota is a race recording state. NDBA’s Rick Clayburgh and ICBND’s Alexis Baxley testified in support. The North Dakota Planning Association testified in opposition as was a representative of the ND Society of Land Surveyors. The committee is sympathetic to the concerns of the bill supporters and will allow time for the sides to try to work out an agreement. The hearing was closed without committee action.
SB 2014 – Appropriation for Industrial Commission – Bank of North Dakota
The Senate Education and Environment Division of the Senate Appropriations Committee held a hearing Tuesday morning to discuss an amendment being offered by BND to ensure the confidentiality of records in partnership with North Dakota financial institutions. BND’s Kelvin Hullet explained the amendment addresses the concern that an open records request of BND could include information associated with a participation loan. NDBA and ICBND testified in support of the amendment. There was no opposition.
HB 1278 – Establishment Cash Management Committee
The House Finance and Taxation Committee heard HB 1278 Wednesday morning. HB 1278 was sponsored by Majority Leader Mike Lefor. Leader Lefor explained the bill was a product of the interim cash management study. He offered a hog house amendment which was crafted by the Bank of North Dakota. He explained the purpose of the bill is to provide a three-tier cash management plan for the immediate, intermediate and long-term cash flow needs of the state. BND’s Don Morgan answered committee questions regarding the proposed amendments. No one spoke in opposition and the hearing was closed without committee action. As introduced, NDBA is opposed to HB 1278; if the proposed amendments are adopted, NDBA will be neutral.
Hearings The Week of February 10
2/11/2025 8:45 AM
SB 2225
Relating to the creation of a legislative committee on government efficiency.
House Industry, Business and Labor
Tracking
2/11/2025 9:00 AM
SB 2356
Relating to 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.
Senate Judiciary
Priority
2/11/2025 2:30 PM
HB 1226
Relating to pharmacy benefits managers; to provide a penalty; and to declare an emergency.
House Industry, Business and Labor
Priority