ARTICLE
ND Legislative Update by Kayla Pulvermacher, State Legislative Director Today is Legislative Day 63, and the deadline for bills and resolutions to be reported out of committees in second house today. I’ve heard many accounts of how many days leadership would like to keep at their disposal, but I think somewhere around 5 is the most likely. Today I want to go more in depth on the Department of Financial Institutions’ bills. Department budget bills are usually the last bills to be passed during a legislative session. The Department of Financial Institutions’ budget, SB 2008, is currently waiting for a House conference committee to be appointed as the Senate has refused to concur with their amendments. Major highlights for this bill include appropriations for state employee salary and benefit increases, reductions in funding for travel, and increases in operating expenses for the financial literacy program. SB 2101 is being called the department’s “modernization” bill. The bill amends Century Code relating to credit union loans, the regulatory fund, assessment of civil money penalties, appointment of receivers, supervision and examinations, assessments, real estate loans, bank mergers, bank branches, bank investments, trust branches, credit union powers, credit union board notice, and sale or purchase of banking institutions or holding companies. Section 12 of the bill includes parity language between banks and credit unions in how to handle “other real estate owned” by credit unions. This will allow for a credit union to set up an LLC in order limit its liability if something were to happen with the property, much like banks are currently allowed to do. DakCU worked to secure an emergency clause for this bill so that credit unions would be able to utilize this section of the bill once it is filed with the Secretary of State. SB 2102 deals with bank and credit union failures. First, it makes the procedures around such a situation administrative rather than judicial. Second, the bill would put the authority to take over a financial institution with the commissioner rather than the State Banking Board or State Credit Union Board. Third had to deal with the appeals process in the bill. DakCU had issues with no appeals process being offered in the emergency receivership process as outlined in the bill, and one was added in the House. The bill has passed both houses and is now awaiting the Governor’s signature. Finally is SB 2197. This bill has to do with keeping financial documents that have been obtained by the department. Although there are general laws that are in place to keep such documents confidential, there are exceptions in Century Code that would allow or require the commissioner to furnish the information. SB 2197 would protect confidential bank information obtained by DFI, including confidential banking information and customer data. Next week, we’ll talk about some of the agriculture bills we worked on this session. Have a great week, and don’t hesitate to contact me at kpulvermacher@dakcu.org with any questions or comments about our North Dakota advocacy efforts.
ND Legislative Update
by Kayla Pulvermacher, State Legislative Director
Today is Legislative Day 63, and the deadline for bills and resolutions to be reported out of committees in second house today. I’ve heard many accounts of how many days leadership would like to keep at their disposal, but I think somewhere around 5 is the most likely.
Today I want to go more in depth on the Department of Financial Institutions’ bills.
Department budget bills are usually the last bills to be passed during a legislative session. The Department of Financial Institutions’ budget, SB 2008, is currently waiting for a House conference committee to be appointed as the Senate has refused to concur with their amendments. Major highlights for this bill include appropriations for state employee salary and benefit increases, reductions in funding for travel, and increases in operating expenses for the financial literacy program.
SB 2101 is being called the department’s “modernization” bill. The bill amends Century Code relating to credit union loans, the regulatory fund, assessment of civil money penalties, appointment of receivers, supervision and examinations, assessments, real estate loans, bank mergers, bank branches, bank investments, trust branches, credit union powers, credit union board notice, and sale or purchase of banking institutions or holding companies. Section 12 of the bill includes parity language between banks and credit unions in how to handle “other real estate owned” by credit unions. This will allow for a credit union to set up an LLC in order limit its liability if something were to happen with the property, much like banks are currently allowed to do. DakCU worked to secure an emergency clause for this bill so that credit unions would be able to utilize this section of the bill once it is filed with the Secretary of State.
SB 2102 deals with bank and credit union failures. First, it makes the procedures around such a situation administrative rather than judicial. Second, the bill would put the authority to take over a financial institution with the commissioner rather than the State Banking Board or State Credit Union Board. Third had to deal with the appeals process in the bill. DakCU had issues with no appeals process being offered in the emergency receivership process as outlined in the bill, and one was added in the House. The bill has passed both houses and is now awaiting the Governor’s signature.
Finally is SB 2197. This bill has to do with keeping financial documents that have been obtained by the department. Although there are general laws that are in place to keep such documents confidential, there are exceptions in Century Code that would allow or require the commissioner to furnish the information. SB 2197 would protect confidential bank information obtained by DFI, including confidential banking information and customer data.
Next week, we’ll talk about some of the agriculture bills we worked on this session. Have a great week, and don’t hesitate to contact me at kpulvermacher@dakcu.org with any questions or comments about our North Dakota advocacy efforts.