A BILL for an Act to amend and reenact section 47-16-20 of the North Dakota Century Code, relating to late fees on rents under a rental agreement.

69th Legislative Assembly (2025-26) Introduced by Jeff Barta and 4 co-sponsors

North Dakota would allow lodging landlords to charge a late fee up to 8% of overdue rent when monthly lodging payments are late, with dates governed by the lease.

Second reading, failed to pass, yeas 7 nays 39

Summary — SB 2236 (amendment to North Dakota Century Code § 47‑16‑20: late fees on rent)

Status
- Introduced: March 11, 2025
- Sponsors (per bill text): Senators Braunberger, Barta, Cory; Representatives Schneider, VanWinkle
- Companion bill: HB 4314
- Legislative outcome: Failed on second reading (vote reported as yeas 7, nays 39) — not enacted.

Note on source material
- The materials provided include mixed metadata from multiple jurisdictions (an unrelated Illinois bill text and legislative activity from several sessions). This summary focuses only on the North Dakota statutory amendment text contained in the file (amendment to N.D.C.C. § 47‑16‑20).

Purpose and intent
- To clarify when different categories of rent are payable and to authorize (and cap) late fees for overdue lodging rent under a rental agreement.

Key provisions
1. Timing of rent payments (clarification)
- Agricultural and wild land rent: payable yearly at the end of each year (unless contract/usage says otherwise).
- Lodging rent: payable monthly at the end of each month (unless contract/usage says otherwise).
- Other rents: payable quarterly at the end of each quarter.
- For leases shorter than the stated period, rent is payable on termination of the lease.

Late fee for lodging rent (new or amended provision)

If a lessee’s rental payment for lodging is not made by the end of the month (or by any date the rental agreement specifies), the lessor may charge a late fee.
The late fee is capped at a maximum of 8% of the overdue rent payment.

Who would be affected
- Landlords (lessors) who lease “lodgings” within North Dakota: gain statutory authority to impose a late fee up to 8% when the tenant misses the monthly or contractually‑specified payment deadline.
- Tenants (lessees) of lodgings: may be charged a late fee of up to 8% on any overdue monthly rent payments; lease terms that specify alternate due dates continue to control timing.
- Parties to agricultural, wild land, and other longer‑term leases: the bill restates default payment intervals (yearly for agricultural/wild land; quarterly for other rents) unless the lease states otherwise.

Practical impact and considerations
- Caps excessive late fees by setting a maximum (8%) — provides a predictable maximum cost for tenants and a clear limit for landlords.
- Leaves room for lease terms to specify alternate due dates and terms (the statute applies “when there is no contract or usage to the contrary” and references dates “otherwise specified in the rental agreement”).
- The change is procedural/substantive to landlord‑tenant law; its effect could be reduced or altered by local ordinances or other state statutes regulating residential landlord practices (security deposit limits, interest, grace periods, etc.).
- Because the measure failed on second reading, it did not become law in this session. Stakeholders should monitor any companion bills (HB 4314) or future introductions for similar changes.

If you want, I can:
- Compare this proposed 8% cap to current North Dakota practice and to caps in other states, or
- Draft model lease language that conforms to the amendment (should it be enacted).