All Roll Calls
Yes: 131 • No: 3
North DakotaHB 15072025 Regular SessionHouseWALLET
AN ACT to create and enact a new chapter to title 6 of the North Dakota Century Code, relating to the establishment and organization of cooperative financial institutions; and to amend and reenact sections 6-01-02, 6-01-15, 6-01-17.1, 6-02-02, 6-02-03, 6-03-02, 6-03-11, 6-03-13.1, 6-03-34, 6-05-01, 6-06-35, 6-07.2-09, 6-07.2-19, and 6-08-08.1 of the North Dakota Century Code, relating to the application, powers, payment of claims, liquidation, and sale of cooperative financial institutions.
Sponsored By: Daniel R. Vollmer (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 5 benefits, 0 costs, 1 mixed.
Clear rules for winding down coops
Voluntary liquidation rules for credit unions now also cover cooperatives. The board and a majority of members must approve, and the president must notify regulators within three days. Liquidators must conserve assets and distribute them fairly, aiming to finish within one year. In liquidation, member payouts are pro rata based on each member’s account on the liquidation date, after equity capital securities.
Co-ops can seek trust powers
Cooperative institutions and state banking associations can ask the state banking board to let them offer trust and fiduciary services. They must meet the law’s trust‑power conditions. Some capital stock division rules do not apply when trust authority is granted.
Conflict rule eased for state staff
Officers and employees of the state financial department may be members of cooperative financial institutions. This membership no longer breaks the department’s disinterest rule.
New member-owned bank charter
North Dakota creates a new cooperative financial institution charter. At least 15 founding members must sign a written agreement. Coops are nonstock and cannot issue stock; the banking board sets an adequate capital plan. The board holds a public review and the commissioner must confirm capital and federal deposit insurance before opening. Coops are treated as banks where it fits and are exempt from stock-based capital and 50% surplus set‑aside rules that do not match a coop.
Stronger member control and voting
Members get one vote each. No proxy voting is allowed. Boards have 5 to 15 directors with staggered terms and other independence rules. Coops must give set notice and get a two‑thirds member vote for mergers. Directors and top managers cannot take special conversion‑related pay beyond normal fees and compensation. Some stock‑bank director and bylaw rules do not apply to coops.
Conversion options and related fees
Banks, credit unions, and other institutions can convert into a cooperative. A cooperative can convert to a federal savings association or a state credit union. Conversions need board approval, member votes, notices, and filings. Applicants pay set fees: $5,000 to form or convert, and $1,500 for a branch. The commissioner may also charge hourly exam fees and can require a new member vote if the process was improper. Change‑of‑control prior‑notice rules do not apply to coops.
Sponsors & Cosponsors
Sponsor
Daniel R. Vollmer
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/24/2025
Second reading, passed, yeas 44 nays 0
Yes: 44 • No: 0
House vote • 2/10/2025
Second reading, passed, yeas 87 nays 3
Yes: 87 • No: 3
Actions Timeline
Filed with Secretary Of State 04/03
4/7/2025HouseSigned by Governor 04/02
4/4/2025HouseSent to Governor
4/1/2025HouseSigned by Speaker
4/1/2025HouseSigned by President
3/26/2025SenateReturned to House
3/25/2025HouseSecond reading, passed, yeas 44 nays 0
3/24/2025SenateReported back, do pass, place on calendar 15 0 1
3/21/2025SenateCommittee Hearing 10:30
3/19/2025SenateRereferred to Appropriations
3/11/2025SenateReported back, do pass 5 0 0
3/11/2025SenateCommittee Hearing 03:00
3/10/2025SenateIntroduced, first reading, referred Industry and Business Committee
2/17/2025SenateReceived from House
2/11/2025SenateSecond reading, passed, yeas 87 nays 3
2/10/2025HouseAmendment adopted, placed on calendar
2/7/2025HouseReported back amended, do pass, amendment placed on calendar 8 2 4
2/6/2025HouseCommittee Hearing 10:15
1/28/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
1/20/2025House
Bill Text
Enrollment
FIRST ENGROSSMENT
INTRODUCED
Prepared by the Legislative Council staff for Representative Vollmer
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