March 13, 2023 - Update
Posted: Mar 13 2023
This Week at the Legislature
The March and final budget forecast for the 2023-2025 biennium will be delivered this week. It will be setting the tone for the remainder of the session. In hopefully an omen for the forecast, Governor Burgum and energy leaders released the results of an economic impact study of the oil and gas industry, which found that the industry contributed more than $42 billion to the state’s economy in 2021, employed nearly 50,000 people and was responsible for more than half of the state's tax revenue. Burgum made a plug to decrease the state’s income tax in order to compete with lower-income tax states for workforce, a dire need also impacting the oil and gas industry.
Amidst snow flurries, there was also a steady flurry of bill hearings during this first full week back after crossover, with hundreds of bills still needing to be heard. Some of the more notable bills included a resolution attempting to change the newly adopted term limits measure in the North Dakota Constitution and a resolution tightening how citizen-led constitutional measures must be pursued. Two of the biggest issues of the session—income/property tax relief and pension reform. The governor continues to strongly push for income tax relief, and both the House and Senate pension reform bills were heard in the other chamber’s committees as well. The expected fiscal impact of the pension debate is expected to be around $250 million.
Hearings and Other Action Last Week (3.06.23 - 3.10.23)
HB 1082 – UCC Amendments Relating to Digital Assets
The Senate Judiciary Committee heard HB 1082 on Monday morning. Introduced at the request of the Commission on Uniform State Laws, HB 1082 address transactions largely involving emerging technologies, such as virtual (non-fiat) currencies, distributed ledger technologies, and, to a limited extent, artificial intelligence. Rep. Larry Klemin, who is Chairman of the North Dakota Commission on Uniform State Laws, explained why the legislation was being introduced. He introduced Professor Candace Zierdt, who walked the committee through all the provisions of the bill. NDBA’s Rick Clayburgh and ICBND’s Barry Haugen testified in support. Unlike the House hearing, there was opposition testimony by the Roughrider Policy Center concerned that the proposed amended definition of “money” and how it excluded certain digital assets (bitcoin) in support of a Federal Central Bank Digital Currency (CBDC). Clayburgh testified that the UCC is State law and does not create or promote a CBDC, and the addition of Article 12 and Controllable Electronic Records to the UCC will provide clarity when dealing with Bitcoin and many other electronic assets. The hearing was closed without action. The Committee brought the bill up for action on Wednesday morning, and after lengthy discussion voted to give the bill a 5-1-1 do-pass recommendation. The bill came to the Senate floor for a vote Friday afternoon. Senators were receiving emails from constituents expressing the same concern brought up during the committee hearing. Prior to the start of the floor session, NDBA and ICBND sent separate communications to the Senators addressing the concerns and asking for a yes vote. Sen. Larry Luick explained the bill on committee action on the floor. There was no further discussion and the bill passed 34-12-1 and is now on the way to the Governor for his consideration.
SB 2263 – Escrow Accounts
The House Industry, Business & Labor Committee heard SB 2263 Tuesday morning. SB 2263 was introduced by Sen. Scott Meyer on behalf of ICBND and the Land Title Association. The bill’s purpose is to align North Dakota Century Code with RESPA when dealing with mortgage escrow accounts and any surplus in those accounts. In addition, the bill removes calendar year as a reference for escrow account review. ICBND, The Land Title Association, Housing Finance and NDBA testified in support of the legislation. Sen. Meyer did offer amendments to the bill to address a drafting issue that was brought to his attention by the Legislative Council. The hearing was closed. The committee adopted the amendments and gave the bill a 14-0 do-pass recommendation. The bill is on the House calendar, awaiting consideration.
SB 2217 – Calculation of Interchange Fees and State Taxes
The House Finance & Tax Committee heard SB 2217 Tuesday morning. SB 2217, which was introduced by Sen. Vedaa, would prohibit financial institutions from charging an interchange fee on the sales tax portion of credit and debit card transactions. Mike Rud of the ND Retail Association and Petroleum Marketers Association introduced the bill and testified in support. The ND Grocers Association, NFIB and the National Association of Convenience Stores also testified in support. Steve Rauschenberger of the Electronic Payment Coalition began the testimony in opposition, explaining all of the unintended consequences of the legislation. Joining in the opposition testimony was Byron Snider from Scheels. NDBA’s Rick Clayburgh, ICBND’s Barry Haugen and Angie Olson, Dakota Credit Union Association’s Jeff Olson and BND’s Kelvin Hullet testified in opposition. The hearing was closed without committee action. Given the significant hearing opposition and personal legislative contacts, the bill appears to be headed for a do-not pass recommendation. However, there is some thought the committee could amend the bill by removing the interchange provisions a replacing it with an increase in the merchant reimbursement or even a possible study resolution. NDBA is lobbying to defeat the bill and use some other bill to address the merchant reimbursement. Committee action is accepted this coming week.
HB 1499 Residential Mortgage Revolving Loan Fund
The Senate Industry and Business Committee heard HB 1499 Tuesday morning. Rep. Shannon Roers Jones introduced the bill which would create a study of the feasibility and desirability of creating an interest rate buydown program for a primary residence mortgage, as well as the potential impact on workforce, and increasing access to homeownership. The bill was amended into a study by the House. The bill as originally introduced would have created a $50M revolving loan fund managed by the Bank of North Dakota to buy down interest rates on home loan for a principal residence, within North Dakota, up to 2% below the market rate, but not lower than 4%. The interest rate buydown would be available for home loans originated by a local lender, up to $400,000, and the cost of the funds to buy down the interest rate would be forgiven 20% per year, so they would be completely forgiven after 5 years. NDBA’s Rick Clayburgh testified in support of the study. The committee did discuss the idea of amending the bill back into some type of buy down program and will be looking into that this week. There was no opposition, and the hearing was closed.
HB 1083 Revised Uniform Law on Notarial Act
The Senate Judiciary Committee heard HB 1083 on Wednesday morning. HB 1083 deals with the adoption of the Revised Uniform Law on Notarial Acts (RULONA). Rep. Larry Klemin, who is Chairman of the North Dakota Commission on Uniform State Laws, explained the bill. He noted that traditionally, an individual was required to physically appear before a notary public to sign certain legal documents, which were then notarized by a certificate from the notary public. In recent years, technology and commercially available identification services have made it possible to perform notarial acts for persons who are not in the physical presence of a notary public. HB 1083 establishes that a notary may use communication technology to administer an oath or affirmation to a remotely located individual if the notary identifies the individual, creates an audiovisual recording of the individual taking the oath or affirmation and retains the recording for at least 10 years. The individual must then send the signed document and the declaration to the notary no later than 3 days after the notarial act was performed. NDBA’s Rick Clayburgh testified in support. There was no opposition, and the Committee gave the bill a 6-0-1 do-pass recommendation. The full Senate passed the bill Thursday afternoon and it’s now headed to the Governor for his consideration.
Hearings This Week (3.13.23 – 3.17.23)
3/13/2023 09:00 AM
SB 2237
Relating to a child care income tax credit; and to provide an effective date.
House Finance and Taxation
Tracking
03/13/2023 09:00 AM
SB 2233
Relating to the audit of loan programs administered by the Bank of North Dakota.
House Industry, Business and Labor
Tracking
03/13/2023 09:00 AM
HB 1158
Relating to the imposition of a flat income tax rate of one and one-half percent for individuals, estates, and trusts; and to provide an effective date.
Senate Finance and Taxation
Tracking
03/13/2023 09:30 AM
SB 2242
Relating to the Bank of North Dakota and the administration of the bulk propane storage tank revolving loan fund; to provide an appropriation; and to provide a continuing appropriation.
House Appropriations
Tracking
03/13/2023 09:45 AM
HB 1323
Relating to a claimant's right to maintain a construction lien for furnishing materials and improvements.
Senate Industry and Business
Tracking
03/14/2023 09:00 AM
HB 1228
Relating to the use of certain marketing practices involving home warranty agreements containing a provision for automatic renewal; and to provide for application.
Senate Industry and Business
NDBA Priority
03/14/2023 10:00 AM
SB 2330
Relating to the legacy and budget stabilization fund advisory board and legacy fund definitions; and to repeal section 6-09-49.1 of the North Dakota Century Code, relating to the legacy infrastructure loan fund.
House Finance and Taxation
Tracking
03/15/2023 10:00 AM
HB 1368
Relating to contracts with companies that boycott Israel and a prohibition on investments.
Senate Industry and Business
NDBA Priority
03/15/2023 10:30 AM
HB 1068
Relating to residential mortgage loan servicers; to provide a penalty; and to provide an appropriation.
Senate Appropriations
Tracking
03/15/2023 10:30 AM
HB 1429
Relating to unfair discrimination in the business of insurance and the investment and management of public funds; to amend and reenact section 21-10-08.1 of the North Dakota Century Code, relating to the prohibition on social investments; and to provide for a legislative management study.
Senate Industry and Business
NDBA Priority
03/15/2023 11:00 AM
HB 1392
Relating to the authority to deposit money into institution accounts at the Bank of North Dakota.
Senate Education
Tracking
03/15/2023 11:00 AM
HB 1278
Relating to the powers and duties of the state investment board, restrictions on perpetual contracts, required reports, and the prohibition on social investments; and to provide for a legislative management study.
Senate Industry and Business
NDBA Priority
03/15/2023 02:00 PM
HB 1019
Relating to the administration of the center for distance education; and to provide an exemption.
Senate Appropriations - Human Resources Division
Tracking
03/15/2023 02:45 PM
SB 2274
Relating to vaccination and infection information.
House Human Services
Tracking
03/16/2023 09:00 AM
SB 2118
Relating to abandoned motor vehicles; and to declare an emergency.
House Energy and Natural Resources
Tracking
03/16/2023 09:00 AM
SB 2296
Relating to limiting judicial deference to governmental entities; and to provide for a legislative management study.
House Government and Veterans Affairs
Tracking
03/16/2023 09:45 AM
HB 1345
Relating to state purchasing contracts.
Senate Agriculture and Veterans Affairs
NDBA Priority
03/16/2023 10:00 AM
SB 2371
Relating to the power of counties and municipalities to prohibit local development by a foreign adversary; to amend and reenact section 47-01-09 of the North Dakota Century Code, relating to the prohibition on ownership of real property by a foreign adversary; and to declare an emergency.
House Agriculture
Tracking
03/17/2023 09:00 AM
SB 2313
Relating to eminent domain and the assessment of damages.
House Energy and Natural Resources
Tracking
03/17/2023 09:00 AM
HB 1135
Relating to exceptions to the acquisition of agricultural land by foreign governments.
Senate Energy and Natural Resources
Tracking
03/17/2023 09:30 AM
HB 1393
Relating to grain and seed warehouses, grain buyers, insolvent grain warehousemen, uniform accounting for public elevators and warehouses, and credit-sale contracts indemnity from title 60; to amend and reenact subsection 4 of section 41-07-10 and section 51-23-04 of the North Dakota Century Code, relating to cross-references to repealed laws; to repeal chapters 60-02, 60-02.1, 60-04, 60-05, and 60-10 of the North Dakota Century Code, relating to grain and seed warehouses, grain buyers, insolvent grain warehousemen, uniform accounting for public elevators and warehouses, and credit-sale contracts indemnity; to provide a penalty; and to provide a continuing appropriation.
Senate Agriculture and Veterans Affairs
Tracking
03/17/2023 09:30 AM
HB 1503
Relating to ownership of real property and commercial assets by foreign adversaries; to provide for a legislative management study; and to provide an expiration date.
Senate Energy and Natural Resources
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!