Legislative Update | March 14, 2025
Posted: Mar 14 2025
This Week at the Legislature
It was a busy week at the Capitol – T.G.I.F.
This week was all about the bottom line as the joint House and Senate Appropriations Committees received in-depth economic reports to establish the final revenue forecast for the 2025-2027 biennium. The two committees will meet on Monday to formally adopt the final revenue forecast. Here are some of the important upshots:
- Oil Prices: Prices are expected to drop, which makes the Bakken oil play less competitive, leading to less oil tax revenue.
- Oil Tax Revenue: The projected price of oil is $59/barrel in 2026 and $57/barrel in 2027, down from January. Additionally, the forecast has projected less production, from the January forecast of 1.2 million barrels a day to 1.1 million barrels a day.
- Trade War: Tariffs will be punishing to our export markets, especially those in agriculture commodities, like ethanol, corn, and soybeans, the majority of which are sent to Canada or overseas.
- General Fund: The projected general fund revenue will decrease $105M from the January forecast to $5.07B.
The theme for the remainder of the Legislative session, for many, will be conservatism. Next week will be a very full week of committee hearings, but the following week many committees will start to slow down as they run out of bills to hear.
Hearings and Other Action this Week
HB 1127 – DFI Agency Update Bill
Monday morning, the Senate Industry and Business Committee heard HB 1127 which was introduced by the Department of Financial Institutions. Commissioner Kruse walked the committee section by section through the bill. HB 1127 updates and clarifies sections of the century code relating to the removal of financial institution officers, directors, and employees; and creates a new chapter 13-01.2 to address data security for non-banks. This section does not apply to banks but only non-bank licensees, ensuring they have the same safeguards in place to protect consumer data as do banks. Kruse also explained the House had amended the bill, deleting the department’s recommendation to remove a person’s ability to request reinstatement into banking after 3 years of a final prohibition order. She noted the provision in statute caused conflict with Federal rules and the understanding in North Dakota that removal from banking for embezzlement, fraud, and theft is a permanent ban. NDBA’s Rick Clayburgh testified in support of the bill and in support of deleting the House amendments. The Dakota Credit Association also testified in support of the bill. There was no opposition and the hearing was closed without committee action. Monday afternoon, the committee took the bill up for discussion. After a brief discussion, the committee agreed with the department and adopted an amendment removing the House changes. The Committee gave the amended bill a 5-0 do pass recommendation. Thursday afternoon the Senate passed the amended bill 46-1. The bill heads back to the House for their concurrence.
HB 1447 – Virtual Currency Kiosks
The Senate Industry and Business Committee heard HB 1447 Monday morning. HB 1447, sponsored by Rep. Steve Swiontek at the request of AARP. DFI Commissioner Kruse began the testimony explaining HB1447 is intended to regulate crypto-currency kiosk machines in North Dakota. She explained Crypto-currency kiosks, often referred to as Bitcoin ATMs, have seen rapid growth in recent years and that the bill was based on model legislation supported by AARP. She also informed the committee the State of Iowa had filed a lawsuit against CoinFlip over their Crypto Kiosks. Kruse then presented amendments to the bill to address concerns proponents had with the bill as it left the House. (House amendments inserted language to make limitations only for the first five transactions within the first thirty days of the first transaction.) Kruse requested an amendment to move back to a more reasonable transaction limit that would be consistent with laws in other states. NDBA’s Rick Clayburgh testified in support of the amendments and introduced First Western Bank’s Jacob Rued who testified on behalf of ICBND and NDBA. Rued provided the committee with real-life examples of crypto fraud. He, too, requested the committee amend the bill by backing several consumer protections that had been removed by the House committee. McLean County States Attorney Ladd Erickson and AARP’s Janelle Moos also testified in support of the amendments. Kevin Lolli, assistant general counsel for CoinFlip, testified in support of the bill but opposed the amendments because he felt the parties had agreed to a compromise in the House. Scott Meske, lobbyist for CoinFlip, asked the committee to give him until next week to discuss the amendments with his client and work with the parties on amendments. The hearing was closed without committee action. Wednesday afternoon, the committee brought the bill up for committee discussion. Meske told the committee he needed more time to work on the bill. After some very pointed questions from the committee, Meske called his client and after a short discussion agreed to the amendments. The committee adopted the amendments and gave the bill a 5-0 do pass recommendation.
HB 1183 – Gold and Silver Investment
The Senate Industry and Business Committee heard HB 1183 Monday morning. HB 1183, which was introduced by Representative Dan Johnston, requires the State Treasurer to invest 1% of all funds deposited in the treasury in physical gold and silver as bullion or coins. This does not include general fund deposits, which were amended out of the bill by the House. The bill also 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. BND’s Kelvin Hullet testified in a neutral position, explaining the costs associated with BND housing the physical asset. The hearing was closed without committee action. On Wednesday afternoon, the committee brought the bill up for committee work. After lengthy discussion, the committee gave the bill a 3-2 do-not-pass recommendation.
HB 1507 – Establishment of a Cooperative Bank Charter
The Senate Industry and Business Committee heard HB 1507 Monday afternoon. HB 1507 was sponsored by Rep. Dan Vollmer at the request of the Department of Financial Institutions. Corey Krebs, assistant DFI commissioner, 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. 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. Dakota Credit Union Association President Jeff Olson testified in a neutral position, explaining a credit union could also convert to this type of bank charter. The hearing was closed and the committee gave the bill a 5-0 do-pass recommendation and referred the bill to the appropriation committee due to a fiscal note associated with the Secretary of State’s business registration requirements.
SB 2356 – Contents of a Legal Description for a Deed
The House Industry, Business and Labor Committee heard SB 2356 Tuesday morning. 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 the county has the right to require property owners to plat property especially if the precise location of the land may not be easily ascertained. He noted the amended bill does not take that right away, it simply does not allow that right to be exercised for the purpose of rejecting the recording of the deed when the same legal description is used as the prior conveyance. Hacker explained the bill allows the deed to be recorded and any required surveying and platting to occur after the recording. He noted it is important for the buyer and seller to be aware that there could be additional expense due to the required new surveying and platting. There was no opposition and the hearing was closed. The committee gave the bill a 13-0 do-pass recommendation. It passed the House 89-1 on Thursday afternoon.
SB 2127 – Uniform Electronic Estate Planning Documents Act
Tuesday morning, the House Judiciary Committee heard SB 2127 which would adopt the Uniform Electronic Estate Planning Documents Act. Brad Myers, University of North Dakota School of Law, and a member of the North Dakota Commission on Uniform State Laws, introduced and walked the committee through the legislation. NDBA’s Rick Clayburgh testified in support of the legislation, noting UEEPDA addresses the execution of estate planning documents, including wills, trusts, and powers of attorney, in electronic form. Clayburgh explained it allows for the online execution of wills while maintaining legal safeguards to ensure authenticity and it fills a gap in the law and complements North Dakota’s Uniform Electronic Transactions Act and Uniform Electronic Wills Act. DIF Commissioner Kruse testified in support as did the Dakota Credit Union Association. The McKenzie County and Morton County Recorders testified in opposition to the bill. They were concerned with one section of the bill that allowed an individual to create a certified paper copy of an electronic nontestamentary estate
planning document by affirming under penalty of perjury that it is a complete and accurate copy of the document. There was no further testimony and the hearing was closed. After the hearing Clayburgh and Myers meet with the recorders regarding their concerns. The group came back with the proposal of requiring the affirming of the electronic nontestamentary estate planning document before a notary public. The Committee Chair Klemin agreed and offered the amendment to the committee. The amendment was adopted, and the committee gave the bill a 11-0 do-pass recommendation.
SB 2310 – Increase in Garnishment Fees
The House Finance & Tax Committee heard SB 2310 Tuesday 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. There was no opposition, and the committee gave the bill a 10-1 do pass recommendation. The full House passed the bill 78-12 Thursday afternoon. The bill now heads to the Governor for his signature.
HB 1354 – Evaluations Performed by Professional Appraisers
The Senate Industry and Business heard HB 1354 Wednesday morning. HB 1354 was sponsored by Rep. Dan Ruby at the request of the North Dakota Appraisers Association. The intent of HB 1354 is to allow appraisers to perform evaluations for North Dakota financial institutions. Representatives from the Appraisers Association testified in support. NDBA’s Rick Clayburgh testified in opposition after discovering a flaw in the bill which potentially could restrict banks from using evaluations when an appraisal is not required. The Real Estate Valuations Advocacy Association (REVAA) and the ND Home Builders Association also testified in opposition. DFI Commissioner Kruse testified in a neutral position but noted the bill does need to be amended to address NDBA’s concern. 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. Corey Kost, chair of the ND Appraisal Board, testified neutral but expressed concern about a proposed amendment from the ND Realtors to ensure Realtors can perform evaluations. Kost testified that there needed to be oversight in the bill by the Appraisal Board over appraisers conducting evaluations for banks. There was a feeling in the room of division between the Appraisal Association and the Appraisal Board. Matt Mangy, general counsel for the Appraisal Board, testified he was working on amendments to try to address other concerns with the bill and would need some more time to present possible amendments. Committee Chairman Jeff Barta wanted to act on the bill this week but soon realized more time was going to be needed. He gave the parties until next Wednesday to put amendments together.
Friday morning, a meeting was held with the Appraisal Association, Appraisal Board, DFI, REVAA, ND Realtors, Home Builders, and NDBA to review amendments prepared by the Appraisal Board. The amendments consisted of two basic issues: 1) fixing NDBA’s concern, ensuring Realtors were not negatively impacted, and allowing appraisers to conduct evaluations; 2) giving the Appraisal Board oversight with appraisers conducting evaluations. After a sometimes-contentious discussion, it appeared a majority of the group agreed to recommend to the Senate committee the amendments without the Appraisal Board’s oversight provisions. The Senate IB&L Committee will be acting on the bill next week.
SB 2123 – Uniform Special Deposits Act
Wednesday afternoon, the House Industry, Business and Labor Committee heard SB 2123. The bill adopts the Uniform Special Deposits Act. Representative Larry Klemin, chairman of the North Dakota Commission on Uniform State Laws, introduced the bill. Representative Klemin explained the bill and the work the Uniform Laws Commission put into the Act. NDBA’s Rick Clayburgh testified in support of the legislation, explaining that special deposits are deposits of money at a bank created for a particular purpose where the person entitled to the money is not determined until the occurrence of a specified event or contingency occurs. He noted the legislation provides legal clarity as to the use of special deposits. DIF Commissioner Kruse testified in support. There was no opposition, and the hearing was closed. The committee gave the bill a 10-0 do pass recommendation. On Friday, the House passed the bill 88-0. The bill now heads to the Governor for his signature.
HB 1441 – Specie Legal Tender - UPDATE
Last week, the Senate Finance and Tax Committee gave HB 1441 a 4-2 do-not-pass recommendation. HB 1441 would allow gold and silver as legal tender in North Dakota and define that a United States central bank digital currency is not legal tender. Monday afternoon, the full Senate defeated the bill 18-27.
SB 2122 – Uniform Commercial Real Estate Receivership Act - UPDATE
Last week, the House Industry, Business and Labor Committee gave SB 2122 an 11-2 do-pass recommendation. The bill adopts the Uniform Commercial Real Estate Receivership Act (UCRERA) which provides for a consistent set of rules for receiverships involving commercial property. Monday afternoon, the full House passed the bill 93-0. The bill now heads back to the Senate for their concurrence on the study to review North Dakota’s receivership statutes.
SB 2164 – Disclosure To The North Dakota Protection and Advocacy Project - UPDATE
Last week, the House Human Service Committee gave SB 2164 a 13-0 do-pass recommendation. The bill adds the Protection and Advocacy Project to the list of agencies to which a financial institution may report suspected exploitation of an eligible adult. Monday afternoon, the full House passed the bill 93-0.
Hearings The Week of March 17, 2025
3/17/2025 9:00 AM
HB 1176
Governor’s Property tax proposal. The original bill provided 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. As amended in the House, the bill increases the primary residence property tax credit from $500 to $1,450 annually and it expands the homestead property tax credit income thresholds and benefit for the renter’s refund program.
Senate Finance and Taxation
Priority
3/17/2025 9:30 AM
HB 1149
Relating to the revised uniform unclaimed property act; and to declare an emergency.
Senate Industry and Business
Priority
3/17/2025 11:00 AM
HB 1226
Relating to wearing a mask in a public place.
Senate Judiciary
Tracking
3/17/2025 2:30 PM
SB 2280
Relating to prior authorization for health and dental insurance; to provide for a legislative management study; to provide for a legislative management report; and to provide an effective date.
House Industry, Business and Labor
Priority
3/17/2025 3:15 PM
HB 1278
Regarding the management of money in the state treasury and a cash management board; to provide a report; and to provide an expiration date.
Senate Appropriations
Priority
3/18/2025 10:30 AM
HB 1507
Relating to the establishment and organization of cooperative financial institutions charter; relating to the application, powers, payment of claims, liquidation, and sale of cooperative financial institutions.
Senate Appropriations - Government Operations Division
Priority
3/20/2025 10:00 AM
SB 2014
Relating to the appropriation for defraying the expenses of the industrial commission and the agencies under its control – including the Bank of North Dakota and the Housing Finance Agency. BND provisions include open records request clarification and update to PACE program.
House Appropriations - Government Operations Division
Priority
3/20/2025 2:30 PM
SB 2014
Relating to the appropriation for defraying the expenses of the industrial commission and the agencies under its control – including the Bank of North Dakota and the Housing Finance Agency. BND provisions include open records request clarification and update to PACE program.
House Appropriations - Government Operations Division
Priority
NDBA 2025 Legislative Tracking Lists