by Jeff Olson, VP of Advocacy and Awareness

Despite winter storms in central and eastern portions of the states, the North Dakota Legislative Session will be in session and marks the 25^th day of work.  Today also is the deadline for referrals of bills with fiscal notes from each chamber to be forwarded to their respective Appropriations Committees. 

With “Crossover” (when approved bills are sent to the other chamber for consideration) just 14 days away, committee work is the name of the game this week as committee’s press to get their work done prior to the recess on March 1. The House committees will hold only 21 hearings this week while the Senate will hold 33 hearings. The Senate committee has more hearings as they have started work on approved House bills.

Of interest for credit unions this week will be the committee work today on HB 1251, The “Repairman Liens” bill.  CUAD’s advocacy team has been front and center on negotiations on a compromise for the bill. The House IBL (Industry, Business and Labor) committee is expected to act on the bill this morning 11 AM.

Other hearings we are watching will take place in the Senate IBL committee on Tuesday with a hearing on SB 2260 which is a bill relating to consumer credit counseling services, debt settlement providers, assurance of discontinuance, and telephone solicitations. Also, the Senate IBL will hold a hearing on HB 1083 which is a bill relating to multifamily housing facilities, leasehold mortgage loans and refinancing previously purchase mortgage loans. The Assembly  is scheduled to work on Monday, February 18 (Monday) President’s day, which is the observance of George Washington's and Abraham Lincoln’s Birthdays.

The Credit Union supported HB 1217, a bill relating to concepts of personal finance instruction at the middle school level was approved in the House last week on a 90-2 vote. It now goes to the Senate Education Committee for consideration.

House Bills:

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.
Credit Union position - Support
Action – Reported Back “Do Pass”; Amendment Adopted 10-4-1; Second Reading Passed, 68 yeas; 18 Nays. Sent to Senate

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.
Credit Union position - Support
Action – Reported back as “Do Pass” 15-0
UPDATE:
Amendment Adopted; Second Reading, Passed 91 Yeas; 0 Nays, Emergency Clause Carried.
Senate IBL Hearing, Tuesday, February 12 at 11 AM

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.
Credit Union position - 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.
Credit Union position - Support
No UPDATE

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.

Credit Union position - 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.  
Credit Union position - 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.
Credit Union position - Watching
UPDATE:  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
Credit Union position - Watching
UPDATE – 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.
Credit Union position - Watching
No Action from Committee yet
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.”

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

HB 1225 – Political Subdivisions; A Bill relating to property sales price disclosures
Credit Union position - Watching

HB 1316 – IBL Committee, A Bill relating to Good Funds in Real Estate transactions
Watching
Committee, Hearing Monday, at 4:15 PM

HB 1389 – Introduced Industry, Business, and Labor. A BILL for an Act to create and enact chapter 43-23.5 of the North Dakota Century Code, relating to appraisal management company regulation; to amend and reenact the new subdivision to subsection 2 of section 12-60-24 of the North Dakota Century Code as created by section 1 of Senate Bill No. 2110, as approved by the sixty-third legislative assembly, relating to criminal history background checks; to provide a penalty; and to provide an effective date.
Action: request return from committee; referred to Judiciary Committee; hearing on February 6 at 10 AM.
Credit Union position - Watching

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.
Credit Union position - 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.  
Credit Union position - Opposed as presented, recommend amendment
Support as Amended
UPDATE: Action: Reported back Amendment. Amendment received a “Do Pass” 6-0; Approved on Senate Floor, 45-1; sent to House.

SB 2079 – IBL Committee,  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.
Credit Union position - Watching
No Action Taken

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.
Credit Union position - Support
UPDATE: 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.
Credit Union position - 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.
Credit Union position - 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, provided amendment

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

SB 2123 – Judiciary Committee; Judiciary Committee; At the request of the Uniform Commission on State Laws) A BILL for an Act to provide for the Uniform Asset-Freezing Orders Act.

Credit Union Position – Support
Action – Committee Hearing; February 5 at 9 AM

SB 2132 – IBL Committee, A BILL for an Act to amend and reenact section 6-09-46 of the North Dakota Century Code, relating to the rebuilders loan program; to provide an exemption; to provide for transfers; and to declare an emergency. (Minot/Bismarck and other areas affected by 2010 Flooding).
Credit Union position - Support
Action: Reported Back as “Do Pass” 7-0
UPDATE: Second Reading, Passed 47-0; Sent to House

SB 2136 – 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.

Credit Union position - Support
Action: Reported back “Do Pass” 7-0
UPDATE: Second reading, Passed 44 yeas, 1 nay, absent not voting. Sent to House

SB 2260 – IBL Committee, A Bill relating to consumer credit counseling services, det settlement providers and telephone solicitations.
Credit Union Position – Watching  

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.
Credit Union position - Watching
Action – Reported back “Do Pass,” 7-0

SB 2273 – Finance and Taxation, A bill relating to investment in an angel fund – relating in to a financial institutions tax credit for investments in an angel fund and elimination of the lifetime limit on angel fund investment tax credits for individuals.
Credit Union position - Watching
Action – Hearing, February 4 at 2 PM

SB 2323 – Judiciary Committee; A Bill relating to the authority of abuse or neglect of a vulnerable adult.
Credit Union Position – Watching. However may oppose as if it pertains to reporting of a financial institution s customer/consumer and personal records (as in a breach).
Action – Committee hearing on February 6 at 10:45 AM

SB 2339 – Industry Business and Labor; A Bill Relating to the financing of housing projects through the public finance authority, or the issues of bonds for public housing.
Credit Union position - Watching

SB 2349 – Industry, Business and Labor; An Act to provide an appropriation to the department of commerce for micro lending services for new Americans.
Credit Union position – Neutral  – as introduced
Action – Hearing February 4 at 9:30 AM

SB 2364 – Senate Finance and Taxation Committee; A Bill .rRelating to the time for filing of returns for certain corporations, interest on tax when the time for filing a return is extended, refunds of tax for certain corporations, and audits of certain corporations; amend and reenact subsection 5 of section 11-37-08, subsection 8 of section 40-63-01, subsection 5 of section 40-63-04, section 40-63-06, subsections 3 and 4 of section 40-63-07, subsection 3 of section 57-38-01.3, and subsections 5 and 7 of section 57-38-01.32 of the North Dakota Century Code, relating to subjecting financial institutions to the corporate income tax, adjustments for net operating losses, bonds and other obligations of a commerce authority, creation of renaissance zones, the housing incentive fund tax credit, and computation of farm income; to repeal chapter 57-35.3 and subdivisions c and f of subsection 2 of section 57-38-30.3 of the North Dakota Century Code, relating to elimination of the financial institutions tax and income associated with losses passed through to a financial institution (Eliminating the Bank Franchise tax); to provide an effective date; and to declare an emergency.
Credit Union Position – Watching
Action – Hearing February 4 at 10:15 AM