Legislative Update | January 31, 2025
Posted: Jan 31 2025
This Week at the Legislature
A bill to end Daylight Saving Time passed the house this week, 55-37. Now we must wait another month to see if the senate agrees…or if we’ll “fall” back into old habits! All joking aside, some interesting debates are happening in the tower and legislative chambers. The House also approved a resolution raising the threshold for constitutional ballot measures to 60% to pass. And in her first test as President of the Senate, Lt. Governor Strinden declined to vote on a 23-23 tie this week, allowing a hunting-related bill to fail—though it ultimately passed on reconsideration the next day.
In all, 1068 bills and resolutions have been introduced – the most North Dakota has seen in 15 years! It’ll be busy next week as policy committees must vote on any policy bills with an appropriation or fiscal impact by Feb. 10 House and Feb 13 Senate, sending those corresponding Appropriations committees for their review within budget constraints. The Delayed Bills Committee can approve late filed bills but do so rarely. Experienced strategists know many future changes can be made by way of amendment. That is why we will continue to follow the process closely.
NDBA extends congratulations to newly confirmed Secretary of Interior, Doug Burgum! We look forward to watching and supporting his work in Washington.
NDBA Bankers Day at the Capitol
NDBA’s Bankers Day at the Capitol on January 28 kicked off at the ND Heritage Center, where the group heard from NDBA President and CEO Rick Clayburgh and ND Attorney General Drew Wrigley. Roz Leighton, chief of staff for Governor Kelly Armstrong, gave an outlook on executive branch priorities. Then House Majority Leader Mike Lefor talked about legislative priorities. Retired banker and freshman legislator Dan Vollmer, who represents District 6, shared his experiences as a new legislator. The final speakers, Russ Hanson with ND Associate General Contractors and Amy Cleary with the GA Group, talked about their roles as lobbyists and the importance of constituent engagement in the legislative process. Following the morning presentations, bankers walked to the State Capitol to attend committee hearings, enjoy lunch in the Capitol Cafe, observe floor sessions in the House and Senate, and take part in a Capitol tour. Lt. Governor Michelle Strinden joined the group for a photo on the floor of the Senate.
Many bankers attended banking industry hearings, including a House Industry, Business and Labor committee hearing on SB 2028 relating to the budget approval process of the North Dakota Department of Financial Institutions. This hearing included testimony from DFI Commissioner Lise Kruse, NDBA Past Chair and State Banking Board member Pete Jahner, president of Kirkwood Bank & Trust, and NDBA’s Rick Clayburgh.
NDBA Bank Management Conference and Legislative Reception - February 12
Bankers will have another chance to engage in the legislative process during NDBA’s Bank Management Conference and Legislative Reception on February 12. The NDBA Legislative Committee will meet the morning of February 12, prior to the Bank Management Conference kickoff. The evening of February 12, bankers, legislators, and elected officials will gather at the North Dakota Heritage Center for the NDBA Legislative Reception. More information and registration is available at www.ndba.com.
Hearings and Other Action Week of January 27
SB 2310 – Increase in Garnishment Fees
The Senate Industry & Business Committee heard SB 2310 Monday morning. SB 2310 was sponsored by Sen. Jeff Barta at the request of NDBA. Sen Barta opened the testimony explaining the background of the bill. NDBA’s Rick Clayburgh testified in support, explaining the bill simply raises the garnishment fee from $25 to $40. He noted the last time the amount was updated was in 2005, when the fee was increased from $10 to $25, and further explained the increase from $25 to $40 is consistent with inflation since 2005. ICBND’s Alexis Baxley testified in support. There was no opposition and the committee gave the bill a 5-0 do pass recommendation. The full Senate passed the bill 46-0 Wednesday afternoon.
SB 2028 – Budget Approval Process for the Department of Financial Institutions
The House Industry Business and Labor Committee heard SB 2028 Tuesday morning. SB 2028 was introduced at the request of the ND Legislative Interim Government Finance Committee. The bill would remove the Department of Financial Institutions from the Legislative budgeting process and subject it to continuing appropriation overseen by the State Banking Board and State Credit Union board. Commissioner Kruse testified in favor of the legislation, stating it would enhance DFI’s response to changing economic and industry trends, reduce risk of federal preemption, and improve North Dakota’s ability to influence emerging national issues. She explained the department is completely funded by private industry with no taxpayer funds. Kruse received many committee questions as to budgeting concerns facing the department that have not been addressed by the legislature. She explained her biggest concern centers around requested FTEs. State Banking Board member and President of Kirkwood Bank & Trust Pete Jahner testified in support and stood for questions from the committee. NDBA’s Rick Clayburgh testified in favor of the bill. He explained NDBA supports the bill to give the department the necessary resources to ensure safety and soundness of North Dakota institutions. Clayburgh, too, answered questions about the funding concerns. He noted the NDBA legislative committee discussed the issues and felt the State Banking Board is already properly overseeing the finances of the department and will be a good steward of the resources. There was no opposition and the hearing was closed without committee action. After the hearing, Clayburgh answered questions from some committee members about the addition of a 4-year sunset clause to the bill. He felt it was acceptable to give the legislature the opportunity to see how the continuing appropriation would work under the direction of the Banking Board and credit union board. Committee action is expected this coming week.
HB 1507 – Establishment of a Cooperative Bank Charter
The House Industry Business and Labor Committee heard HB 1507 Tuesday morning. HB 1354 was sponsored by Rep. Dan Vollmer at the request of the Department of Financial Institutions. Rep. Vollmer introduced the bill and spoke in favor. Assistant DFI Commissioner Corey Krebs testified in support of the bill, explaining North Dakota had a version of this type of charter until it was repealed by the 2007 Legislature. Krebs explained the department has received some requests over the years to reestablish the charter. The specific bill was modeled in part by the OCC’s mutual bank charter and Massachusetts’s cooperative bank charter. Krebs noted a member-owned bank could convert to this charter as could a state credit union. If a credit union converted, it would be required to have FDIC insurance, comply with CRA, and pay state and federal taxes. It was noted the department had received inquiries from a few credit unions about the charter if they were to lose their grandfathered business lending exemption. NDBA’s Rick Clayburgh testified in support of the legislation and gave the committee the background on how the mutual charter was repealed in 2007. The Dakota Credit Union Association testified in a neutral position. The bill is being held at the request of DFI for some amendments that will address feedback they received from bankers who reviewed the bill.
HB 1378 – Escrow Account Interest UPDATE
Tuesday morning, the House Industry Business and Labor Committee acted on HB 1378, which was sponsored by Rep. Jorin Johnson. The bill requires payment of interest to a borrower on the funds held in an escrow account on a residential mortgage account. Rep. Johnson introduced amendments to move the provisions of the bill from title 6 to Chapter 47-10.2 of the Century Code. Chapter 47-10.2 governs escrow accounts. The interest rate paid on escrow funds must be based on prevailing market rates for a savings or similar deposit account. At minimum, all interest paid under this chapter must be set at one-half percent annually. If the lender adjusts the interest rate, the change must be consistent with changes in market rates for comparable deposit products. A rate change may not disproportionately favor the lender. The committee adopted the amendments. To address concerns brought up during the initial hearing on the bill by the ND Housing Finance Agency, the committee further amended the bill to exempt Housing Finance. The bill was given an 11-2-1 do pass recommendation. NDBA, ICBND and the credit unions have all sent out member alerts to contact House members to vote no when the bill comes up for floor action, most likely this Monday afternoon. If you have not reached out to your legislator, please do and ask them to vote no on HB 1378.
Hearings The Week of February 3, 2025
2/3/2025 9:15 AM
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
Priority
2/3/2025 2:30 PM
SB 2356
Relating to the contents of a legal description for a deed and a contract for deed.
Senate Industry & Business
2/4/2025 9:00 AM
HB 1226
Relating to wearing a mask in a public place.
House Judiciary
2/4/2025 9:00 AM
SB 2014
A BILL for an Act to provide an appropriation for defraying the expenses of the industrial commission and the agencies under its control; to provide for a transfer; to provide an exemption; and to provide for a report.
Senate Appropriations - Education and Environment Division
Priority
2/4/2025 10:00 AM
HB 1372
Relating to litigation financing; to provide a penalty; and to provide for application.
House Industry, Business and Labor
2/4/2025 2:30 PM
SB 2303
Relating to an education savings account program.
Senate Education
2/5/2025 9:00 AM
HB 1278
Relating to the management and investment of moneys in the state treasury and a cash management and investment board; to provide a report; and to provide a penalty.
House Finance and Taxation
Priority
2/5/2025 10:00 AM
SB 2400
Relating to the establishment of the education savings account program; to provide a continuing appropriation; and to provide an appropriation.
Senate Education
2/5/2025 2:30 PM
SB 2280
Relating to prior authorization for health and dental insurance.
Senate Industry & Business
Priority