Legislative Update | January 24, 2025
Posted: Jan 24 2025
This Week at the Legislature
As the inauguration of the president was taking place in D.C. this week, North Dakota lawmakers were…in committee! Working through Martin Luther King, Jr. Day and the inauguration, House lawmakers had to their final bills by Monday, January 20. The Senate has until the close of business this coming Monday, January 27, to file their final bills. All told, there have been 988 bills filed—far short of the rumored 1,500-1,800 bill drafts requested of Legislative Council. It will be a relatively normal year in terms of bill introductions.
The mood is nothing short of “conservative.” Appropriations chairs urged their fellow lawmakers to stay within the revenue forecast this first half, so as not to have major cuts on the table in the second half. They settled on an estimate of roughly $5.7 billion in General Fund revenue for the 2025-2027 budget cycle. Energy industry champions lauded President Trump’s energy executive orders and his championing of energy infrastructure which will positively impact North Dakota’s traditional resources of oil, gas, and coal. And in an interesting case study of changing legislative dynamics, a proposed constitutional resolution that would have allowed ND citizens to vote to allow sports betting was defeated by a vote of 24-70 in the House. The same bill passed the House by a 49-44 margin in 2023 and a 70-24 margin in 2021, marking a notable shift to the right over the past two sessions.
Hearings and Other Action Week of January 20
HB 1378 – Mandated Interest on Mortgage Escrow Accounts
The House Industry Business and Labor Committee heard HB 1378 Monday morning. HB 1378, which was sponsored by Rep. Jorin Johnson, would require the payment of interest to a borrower on the funds held in an escrow account on their residential mortgage account. The bill requires the interest rate to be based on prevailing market rates for a saving or similar deposit account at the institution, with a minimum of at least half percent annually. The bill also includes a severe penalty for non-compliance with the Department of Financial Institutions suspending the business operation of the institution. Rep. Johnson testified in support, explaining he introduced the bill on behalf of a constituent. He was the only one to speak in support. NDBA Rick Clayburgh testified in opposition explaining the bill would be punitive to smaller banks as they keep loans on their books, whereas a larger bank would have scale to handle this internally. Clayburgh noted there are a number of federal government-backed loans that require escrow and this state law would require banks to pay interest on those loans. Clayburgh testified the marketplace should determine escrow interest, not a government mandate. ICBND’s Alexis Baxley and Housing Finance Agency Executive Director Dave Flohr testified in opposition. DIF Commissioner Lise Kruse testified in a neutral position, noting the bill should not amend Chapter 6 (banking) but Chapter 47-10.2 (escrow accounts) and that the Department opposes the penalty provisions of the bill as being excessive. Rep. Johnson informed the committee he would work on amendments to address some of the concerns. The hearing was closed without committee action.
HB 1354 – Evaluations Performed by Professional Appraisers
The House Industry Business and Labor Committee heard HB 1354 Tuesday morning. HB 1354 was sponsored by Rep. Dan Ruby at the request of the North Dakota Appraisers Association. HB 1354 would allow appraisers to perform evaluations for North Dakota financial institutions. Representatives from the Appraisers Association testified in support, noting South Dakota and Minnesota have adopted similar provisions to allow appraisers to perform evaluations. DFI Commissioner Kruse testified in a neutral position, noting the bill does not contradict or restrict federal law. She explained Federal rules establish anyone can conduct an evaluation for a financial institution if they have expertise, are independent, and capable of rendering an unbiased opinion. HB 1354 adds appraisers to the list of individuals who can perform an evaluation. There was no opposition and the committee gave the bill a 13-0-1 do pass recommendation. The full House passed the bill 94-0 Thursday afternoon.
HB 1447 – Virtual Currency Kiosks
The House Industry Business and Labor Committee heard HB 1447 Wednesday morning. HB 1447, sponsored by Rep. Steve Swiontek at the request of AARP, is intended to regulate crypto-currency kiosk machines in North Dakota. Swiontek noted Crypto-currency kiosks, often referred to as Bitcoin ATMs, have seen rapid growth in recent years. He explained the bill was based on model legislation. AARP’s Josh Askvig testified that crypto kiosks are still relatively new and largely unregulated at the state level compared to traditional financial institutions and money service businesses; they lack sufficient consumer fraud protections. Askvig explained the bill implements consumer protections including - Licensing cryptocurrency kiosk operators; requiring posting fraud warnings; clear display of terms and conditions of use of the kiosk, including fees; capping transaction fees; requiring paper receipts; requiring operators to refund fees for fraudulent transactions; and imposing a daily transaction limit of $1,000. DFI Commissioner Kruse and NDBA’s Rick Clayburgh testified in support. First Western Bank’s Jacob Rued testified on behalf of ICBND, providing real-life examples of crypto fraud. Representatives of CoinFlip and Bitcoin Depot, Crypto-currency kiosks operators, testified in opposition. There was no further testimony and the hearing was closed. A subcommittee was appointed to try to work on some possible amendments to the legislation.
HB 1183 – Gold and Silver Investment
The House Industry Business and Labor Committee heard HB 1183 Wednesday afternoon. HB 1183, which was introduced by Representative Dan Johnston, requires the State Treasurer to invest 1% of all general funds deposited in the treasury in physical gold and silver as bullion or coins. In addition, the bill creates a study of the costs and benefits of investing state funds in gold and silver. A representative of the Sound Money Defense League testified in support, explaining the bill is intended to address the risks of inflation, debt default, and financial turmoil because of the devaluing of Federal Reserve notes. State Treasurer Beadle and BND President Don Morgan testified in a neutral position explaining how the state invests and uses general fund dollars during the biennium. There was no further testimony and the hearing was closed without committee action.
HB 1441 – Specie Legal Tender
The House Industry Business and Labor Committee heard HB 1441 on Wednesday afternoon. HB 1441 was introduced by Representative Nathan Toman, who explained the bill would allow gold and silver as legal tender in North Dakota. He noted it is not intended to create a state currency. He further explained the bill defines money not to include a “central bank digital currency.” DFI Commissioner testified in opposition, noting the potential unintended consequences when defining “specie legal tender” as legal tender. She explained other states that have included gold and silver as legal tender have also included exemptions that they will not force anyone to accept the tender. NDBA’s Rick Clayburgh spoke in opposition to the bill as written and offered amendments to ensure that “no person shall be required to offer or accept specie legal tender for the payment of debt deposits or any other purpose, nor shall any person incur liability for refusing to offer or incur such legal tender, except if provided by contract”, and to further define central bank digital currency exclusion to a specific US central bank digital currency. There was no further testimony, and the hearing was closed without committee action.
Hearings The Week of January 27, 2025
1/27/2025 10:00 AM
HB 1141
Relating to using public services or property for a political purpose.
House Industry, Business and Labor
Priority
1/27/2025 10:00 AM
SB 2282
Relating to an income tax credit for childcare contributions provided by qualified employers; and to provide an effective date.
Senate Finance and Taxation
Priority
1/27/2025 10:30 AM
SB 2310
Relating to garnishments.
Senate Industry and Business
Priority
1/27/2025 2:00 PM
SB 2225
A BILL for an Act to provide an appropriation to the department of commerce for a housing for opportunity, mobility, and empowerment program; to provide for a legislative management report; and to declare an emergency.
Senate Appropriations - Government Operations Division
Priority
1/28/2025 8:30 AM
SB 2282
Relating to an income tax credit for childcare contributions provided by qualified employers; and to provide an effective date.
Senate Appropriations - Human Resources Division
Priority
1/28/2025 10:00 AM
SB 2028
Relating to the budget approval process and reports of the department of financial institutions; to provide a continuing appropriation; and to provide for a report.
House Industry, Business and Labor
Priority
1/28/2025 10:15 AM
HB 1507
Relating to the establishment and organization of cooperative financial institutions; and to amend and reenact sections of Ch 6 of the North Dakota Century Code, relating to the application, powers, payment of claims, liquidation, and sale of cooperative financial institutions.
House Industry, Business and Labor
Priority
1/28/2025 2:15 PM
HB 1239
Relating to blockchain technology, protection for digital asset mining, and an exemption from a money transmitter license.
House Industry, Business and Labor
Tracking
1/28/2025 3:15 PM
HB 1330
Relating to divestment from legacy fund investments in Chinese companies.
House Industry, Business and Labor
Tracking
1/29/2025 9:30 AM
SB 2229
Relating to required disclosures before the sale of a condominium unit or a property subject to a homeowners' association or a condominium project.
Senate Industry and Business
Priority
1/29/2025 10:00 AM
HB 1271
Relating to exceptions for providing statements of full consideration.
House Judiciary
Tracking
1/29/2025 2:15 PM
SB 2214
Relating to the insurance commissioner assuming the duties of the securities commissioner; and to provide an appropriation.
Senate Industry and Business
Tracking
1/30/2025 3:30 PM
HB 1480
Relating to a request for a certificate of title for a motor vehicle.
House Transportation
Tracking
How to Contact Your Legislators
During a legislative session, a legislator can be reached at the State Capitol through:
Otherwise, a legislator can be reached by mail, telephone or email at the address listed in the legislator’s biography, or one of the lists provided below. Individual legislator contact information is listed here:
Over the course of the session, NDBA may ask you to call your Senator or Representative to talk to them about a particular bill or to ask them to support or oppose a particular bill.
Legislator contacts from local bankers are extremely important, so, please, if we ask, contact your legislators!
Also, local legislative forums are great to attend because they inform you about issues beyond banking and let you get to know your legislators at home where they are most responsive to your interests and concerns.
Don’t be a stranger; get to know your representatives in Bismarck!