North Dakota Legislative Session Update, Week 3.

by Jeff Olson, VP of Advocacy and Awareness

Surprisingly, there were no new bills in the House last week. To date the House has introduced 468 bills, while the Senate added 91 new bills and has a total of 375 bills introduced so far. Thursday, January 31 is the last day for Senators to introduce new bills. The House is under the restrictions as representatives can only introduce 5 bills each moving forward.

Specifically, Credit Unions scored early wins in both chambers with HB 1217; SB 2058; SB 2064 and SB 2128. CUAD Advocates testified on the above mention bills. Our input certainly contributed to each of the bills moving through their respective chambers.  

Listed below are some of the Bills (Bills CUAD testified on are indentified as support or opposed)  Also, included are a number of bills that we are currently tracking:

House Bills:

HB 1083 – IBL Committee. A BILL for an Act to amend and reenact sections 54‑17‑07.2 and 54‑17‑07.3 of the North Dakota Century Code, relating to multifamily housing facilities, leasehold mortgage loans, and refinancing previously purchased mortgage loans; and to declare an emergency.
Support
Action – “Do Pass” 15-0
UPDATE:
Amendment Adopted
Second Reading, Passed 91 Yeas; 0 Nays, Emergency Clause Carried
Sent to the Senate

HB 1084 – IBL Committee. At the request of the Department of Financial Institutions
A BILL for an Act to create and enact two new sections to chapter 13‑05, two new sections to chapter 13‑08, two new sections to chapter 13‑09, and a new section to chapter 13‑11 of the North Dakota Century Code, relating to a six‑month extension of a collection agency license, a deferred presentment service provider license, and a money transmitter license during the 2014 calendar year, and the confidentiality of information submitted or received by the commissioner or commissioner's designee to a nationwide multistate licensing system; and to amend and reenact sections 13‑05‑03, 13‑05‑05, 13‑08‑04, and 13‑08‑09, subsection 6 of section 13‑08‑12, and sections 13‑09‑07, 13‑09‑10, and 13‑11‑03 of the North Dakota Century Code, relating to collection agency license applications, the expiration and renewal of a collection agency license, deferred presentment service provider license applications, the expiration and renewal of a deferred presentment service provider license, deferred presentment service transaction procedures, money transmitter license applications, the expiration and renewal of a money transmitter license, and debt‑settlement provider license applications.
Support
UPDATE:
Action – Reported back, “Do Pass” 14-0-1
Amendment Adopted
Referred to Appropriations

HB 1085 At the request of the Department of Financial Institutions A BILL for an Act to create and enact a new subsection to section 6‑01‑02 and section 6‑03‑59.2 of the North Dakota Century Code, relating to providing a definition for a financial corporation and to authorize lease financing of public facilities by a state‑chartered bank; to amend and reenact several sections of the North Dakota Century Code, relating to the management and control of entities regulated by the department of financial institutions, the powers and duties of the state banking board and state credit union board, assessment of civil money penalties, the taking of testimony and enforcement of orders, the appointment of receivers, the supervision and examination by the commissioner of financial institutions, the records kept and reports made by the commissioner of financial institutions, the appointment of an assistant commissioner and assignment of titles within the department of financial institutions, the reports of deputies of the commissioner of financial institutions, the prohibition of financial interest by officers and employees of the department of financial institutions in entities regulated by the department of financial institutions, the salaries of deputies of the commissioner of financial institutions, the regulation and limitation of loans on real estate, the conversion, consolidation, or merger of banking institutions, the removal to a new location of a banking association, requirements regarding how the list of shareholders of a banking institution is to be kept and when it is to be filed with the commissioner of financial institutions, reserve funds of banking associations, the right of action against security deposits of trust companies, responsibilities of trust companies to a beneficiary of a trust, reports regarding the increase in capital stock of trust companies to the state banking board, fees paid to the department of financial institutions by trust companies, the duty of the commissioner of financial institutions when an examination of a trust company discloses a violation of law, the authorization and application by a nonresident bank or trust company intending to establish a place of business, branch office, or agency in the state.
Support
Action – none to report
No UPDATE

HB 1079 – A Bill Referring to the BND PACE program. BILL for an Act to amend and reenact section 6-09.14-03, subsection 4 of section 6-09.14-04, and subsection 2 of section 54-60.1-01 of the North Dakota Century Code and section 22 of chapter 579 of the 2011 Session Laws, relating to the partnership in assisting community expansion program at the Bank of North Dakota and the definition of business incentive.
Support
Action – Reported Back “Do Pass”
Amendment Adopted 10-4-1
Second Reading Passed, 68 yeas; 18 Nays

HB 1127 – Judiciary Committee at the Request of the Uniform Commission of State Laws. A Bill Relating to funds transfers under the Uniform Commercial Code; and to declare an emergency.

SECTION 1. AMENDMENT. Section 41-04.1-08 of the North Dakota Century Code is amended and reenacted as follows: 41-04.1-08. (4A-108) Exclusion of consumer transactions governed by federal law Relationship to Electronic Fund Transfer Act.

1. This Except as provided in subsection 2, this chapter does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 [Title XX, Pub. L. 95-630; 92 Stat. 3728; 15 U.S.C. 1693 et seq.] as amended from time to time.

2. This chapter applies to a funds transfer that is a remittance transfer as defined in the

Electronic Fund Transfer Act [15 U.S.C. 1693o-1], unless the remittance transfer is an

electronic fund transfer as defined in the Electronic Fund Transfer Act [15 U.S.C.

1693a].

3. In a funds transfer to which this chapter applies, in the event of an inconsistency

between an applicable provision of this chapter and an applicable provision of the

Electronic Fund Transfer Act, the provision of the Electronic Fund Transfer Act governs

to the extent of the inconsistency.

SECTION 2. EMERGENCY. This Act is declared to be an emergency measure.

Support

UPDATE
Action – Reported back “Do Pass” 13-0-1

HB 1136 – House Judiciary Committee; Relating to article 9 of the Uniform Commercial Code. This is a BILL for an Act to amend and reenact subsection 3 of section 41-09-135 of the North Dakota Century Code, relating to article 9 of the Uniform Commercial Code. This is a clarification of when to submit a timely filing of a continuation statement.  
Support.
Action: a “Do Pass” from the committee, 13 yeas, 0 nays, 1 absent not voting.
UPDATE
Second Reading, Passed 93 yeas; o nays, 1 absent not voting

HB 1164 –IBL Committee, A Bill Relating to a standard of conduct for directors of financial institutions.
Watching
Action - Reported Back “Do Pass” 15-0
Second Reading, passed 92 yeas; 1 nay, 1 absent not voting

HB 1191 – Judiciary Committee A Bill for an Act to provide Security Interests in Rents
Watching
Action – Reported back “Do Pass” 12-0-2
Amendment Adopted and placed on the calendar.

HB 1216 – Judiciary Committee, A Bill relating to the Regulation of Appraisers.
Watching
No Action Taken

HB 1217 – Education Committee.  A BILL for an Act to amend and reenact section North Dakota Century Code, relating to concepts of personal finance instruction at the middle school level.
SECTION 1. A new section to chapter 15.1-21 of the North Dakota Century Code is created and enacted as follows:

Concepts of personal finance - Inclusion in curriculum for grades seven and eight.

In addition to the requirements of section 15.1 - 21 - 01, beginning July 1, 2014, each school district shall develop a curriculum for personal finance in consultation with the department of career and technical education.

1. The curriculum must be delivered to students in grades seven or eight.

2. The curriculum must include:

a. Checkbook mechanics, including writing checks, balancing, and statement reconciliation;

b. Saving for larger purchases;

c. Credit, including credit card usage, interest, and fees;

d. Earning power, including jobs for teenagers;

e. Taxation and paycheck withholdings;

f. Making and living within a budget; and

g. Consumer rights and responsibilities.

3. The requirements of this section may be provided by a regular classroom teacher ."

Support
UPDATE
Action – Reported back Amended as “Do Pass” 12-0-1
Amendment Adopted

HB 1316 – IBL Committee, A Bill relating to Good Funds in Real Estate
Watching
Introduced to Committee, Hearing held
Action – none taken

Senate Bills:

SB 2008 – Appropriations.  At the request of the Governor, A BILL for an Act to provide an appropriation for defraying the expenses of the Department of Finance.
Support
NO UPDATE

SB 2058 – Political Sub-Divisions: At the request of the Board of University and School Lands, SB 2058 is a BILL for an Act to amend and reenact subsection 2 of section 47-30.1-30 of the North Dakota Century Code, relating to contracting for in-state unclaimed property examinations. CUAD VP Advocacy and Awareness, Jeff Olson Testified before the committee, opposing the bill as it was presented. Olson articulated that the bill as it was presented was too vague and open ended and that financial institutions were already in compliant and examinations by a third party vender were not necessary. The credit unions lobbied for the committee to consider an amendment that stated “that the administrator may not contract for an examination done within the state sate without reasonable cause to believe that a person has failed to comply with this chapter.” The committee accepted the amendment.  
Opposed as presented, recommend amendment 
Support as Amended
Action: Reported back Amendment. Amendment received a “Do Pass” 6-0; Approved on Senate Floor, 45-1; sent to House.

SB 2079 – IBL. At the request of the Housing Finance Agency. A BILL for an Act to create and enact a new section to chapter 54‑17 of the North Dakota Century Code, relating to the authority of the housing finance agency.
Watching.

SB 2064 – Government and Veteran Affairs Committee: A bill relating to the Bank of North Dakota residential Mortgage loan program. This bill will amend and reenact section 6-09-44 of the North Dakota century code. The original bill was passed duirn the special session in 2011 and had effective date through July 2013. The amendment will make the code permanent.  

The bill states that the BND may establish a residential mortgage loan program under which the Bank may originate residential mortgages if private sector mortgage loan services are not reasonable available.   Also, at minimum, an applicant must be referred to the Bank by a local financial institution. CUAD lead legislative Lobbyist Greg Tschider appeared before Senate Government and Veteran Affairs committee and provided an amendment that will ensure that credit unions were specifically included as “local financial institution” and that credit unions will be allowed to participate in the program.
Support
Action: Reported Back Amended, Amendment received a “Do Pass” 7-0.
Second Reading, passed 45-0
Sent to House  

SB 2079 – IBL Committee, A Bill relating to the authority of the housing finance agency.
Support
No Action

SB 2110 – IBL Committee. At the request of the North Dakota Real Estate Appraiser Qualifications and Ethics Board. A BILL for an Act to create and enact a new subdivision to subsection 2 of section 12‑60‑24 and a new section to chapter 43‑23.3 of the North Dakota Century Code, relating to criminal history record checks of appraisers.
Watching
Action: “Do Pass” 7-0, Passed on Senate Floor, 46-0. Sent to the House.

SB 2128 – Political Subdivisions. A Bill relating to fees and notice requirements of the county recorder; to repeal section 35-22-19 of the North Dakota Century Code, relating to a failure to record in a foreclosure; and to provide for a legislative management study.

Opposed as introduced, provide amendment

Action - Reported Back Amended as “Do Pass,” 6-0
Support as amended
UPDATE
Second Reading Passed, 45 yeas; 0 Nays
Sent to House

SB 2132 – IBL Committee. A BILL for an Act to amend and reenact sections 47-14-05 and 47-14-07 of the North Dakota Century Code, relating to interest rates and late fees.
Support
Action: Reported Back as “Do Pass” 7-0
UPDATE
Second Reading, Passed 44-1
Sent to House

SB 2266 – IBL Committee, Relating to cooperative association of articles of incorporation and address of the principal office, business corporation articles of incorporation and amendment of articles of incorporation, limited liability company articles of organization and amendment of the articles of organization, nonprofit corporation articles of incorporation and amendment of articles of incorporation, and contents of the registration a real estate investment trust.
Watching
Action – Reported back “Do Pass,” 7-0