All Roll Calls
Yes: 213 • No: 3
North DakotaHB 11272025 Regular SessionHouseWALLET
AN ACT to create and enact chapter 13-01.2 of the North Dakota Century Code, relating to the financial institution data security program; and to amend and reenact sections 6-01-04.1 and 6-01-04.2, subsection 7 of section 6-03-02, sections 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, and 13-09.1-14, subsection 3 of section 13-09.1-17, sections 13-09.1-38 and 13-10-05, subsection 1 of section 13-11-10, section 13-12-19, subsections 6, 21, and 22 of section 13-13-01, and sections 13-13-04 and 13-13-18 of the North Dakota Century Code, relating to the department of financial institutions, financial institutions, response to department requests, renewal of licenses, orders to cease and desist, issuance of licenses, revocation of licenses, and exemptions from licenses.
Sponsored By: House Industry, Business and Labor
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 4 benefits, 1 costs, 1 mixed.
Stronger data security at financial companies
Regulated financial companies must keep a written, risk‑based security program and name a qualified person to run it. They must assess risks at least yearly, limit access, use multifactor login, and encrypt customer data in transit and at rest; approved alternatives are allowed only when encryption or MFA is not feasible. They must test key controls (annual penetration test if no effective continuous monitoring, and vulnerability checks at least every six months), train staff, and oversee vendors. They must keep a written incident response plan and a business continuity and disaster recovery plan, and the security lead must report to the board each year. Customer data must be securely disposed of no later than two years after last use unless needed by law or business or targeted deletion is not feasible. They must tell the commissioner within 45 days when a security event affects 500 or more consumers. Some small banks have limited exemptions from certain subsections if they hold data on fewer than 5,000 consumers.
Higher fees and faster actions for licensees
Money transmitters must pay an annual renewal fee by December 31: the greater of $500 or 0.25% of North Dakota volume for the 12 months ending June 30, capped at $2,500. For virtual currency, use the average USD value; a $50 late fee applies for renewals by January 31. Licensees must answer department document requests within the time set (at least 10 days, or 30 days if no time is stated) or risk application denial. Licensees pay exam and visitation fees at an hourly rate set to cover actual costs. If the commissioner finds likely immediate harm, they can issue an immediate cease‑and‑desist; a proceeding must start within 10 days and you have 20 days to request a hearing. Debt‑settlement providers face clear revocation grounds, with certified‑mail notice and a hearing.
Updated rules for mortgage staff and servicers
The law clarifies what counts as mortgage servicing, including collecting payments and fees, working on loan changes, foreclosure steps, and reverse mortgages. Companies that only do interim servicing before selling the loan are exempt from servicer licensing. Mortgage loan originator licenses cannot go to people with a prior revocation (unless vacated) or a felony in the last seven years; any‑time bars apply for felonies involving fraud, dishonesty, breach of trust, or money laundering, and pardons are not treated as convictions. Applicants must show financial responsibility and meet education, testing, and net worth or surety bond rules; the commissioner may consider judgments, tax liens, recent foreclosures, and patterns of delinquency.
More finance products treated as loans
When the commissioner names an alternative financing product, it counts as a loan under state law. Then money‑broker licensing and consumer protections apply to that product.
Tougher penalties for unsafe financial actors
The department can suspend or remove officers, directors, or employees for violations, unsafe practices, or breaches of trust. Orders take effect right away; if no hearing is requested within 20 days, they become final, and a person can ask to end a final order only after three years. The commissioner can immediately suspend anyone charged with a felony involving dishonesty or breach of trust until the case ends. After conviction for dishonesty or breach of trust, a permanent ban can be issued. The department can also issue cease‑and‑desist orders, including emergency orders that take effect immediately for up to 60 days when insolvency or big asset loss is likely.
Wider access to bank transfer equipment
A bank that runs electronic funds transfer equipment away from its main office must let other banks’ customers use it on request if the other bank shares costs pro rata. These shared sites are not treated as branches.
Sponsors & Cosponsors
Sponsor
House Industry, Business and Labor
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/2/2025
Second reading, passed, yeas 89 nays 2
Yes: 89 • No: 2
Senate vote • 3/13/2025
Second reading, passed as amended, yeas 46 nays 1
Yes: 46 • No: 1
House vote • 2/14/2025
Second reading, passed, yeas 78 nays 0
Yes: 78 • No: 0
Actions Timeline
Filed with Secretary Of State 04/11
4/14/2025HouseSigned by Governor 04/10
4/11/2025HouseSent to Governor
4/8/2025HouseSigned by Speaker
4/8/2025HouseSigned by President
4/4/2025SenateSecond reading, passed, yeas 89 nays 2
4/2/2025HouseConcurred
4/2/2025HouseReturned to House (12)
3/14/2025HouseSecond reading, passed as amended, yeas 46 nays 1
3/13/2025SenateAmendment adopted, placed on calendar
3/12/2025SenateReported back amended, do pass, amendment placed on calendar 5 0 0
3/11/2025SenateCommittee Hearing 09:30
3/10/2025SenateIntroduced, first reading, referred Industry and Business Committee
2/18/2025SenateReceived from House
2/17/2025SenateSecond reading, passed, yeas 78 nays 0
2/14/2025HouseAmendment adopted, placed on calendar
2/13/2025HouseReported back amended, do pass, amendment placed on calendar 13 0 1
2/12/2025HouseCommittee Hearing 02:00
1/14/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
1/7/2025House
Bill Text
Adopted by the House Industry, Business and Labor Committee
Adopted by the Senate Industry and Business Committee
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with Senate Amendments
INTRODUCED
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