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SB 2235

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

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

Partial payments for lodging rents must first cover unpaid rent before late fees, unless the tenant directs a different allocation at payment.

Second reading, failed to pass, yeas 6 nays 40
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Bill Summary · SB 2235

Summary — SB 2235 (Sixty‑ninth Legislative Assembly — North Dakota)

Purpose / Intent

SB 2235 proposes to amend and reenact section 47‑16‑20 of the North Dakota Century Code to (1) restate when various types of rent are payable and (2) establish the payment‑application priority for partial payments made by tenants of lodgings. The intent is to clarify timing rules for rent payments and to require that partial payments for lodging rents be applied first to outstanding rent rather than to late fees or other charges, unless the tenant specifies otherwise at the time of payment.

Key provisions

  • Amends NDCC § 47‑16‑20 (Rents — When payable).
  • Subsection 1 (timing of payments — clarified language):
    • Rent for agricultural and wild land: payable yearly at the end of each year when no contract or usage provides otherwise.
    • Rent for lodgings: payable monthly at the end of each month.
    • Other rents: payable quarterly at the end of each quarter from the time the lease takes effect.
    • Rent for leases shorter than those periods: payable at the termination of the lease.
  • Subsection 2 (priority of application for lodging payments):
    • If a payment by a lessee for lodging is insufficient to cover the outstanding rental amount plus any late fees or other charges, the payment must first be applied to the outstanding rental amount due.
    • An exception permits the lessee to direct a different application at the time the payment is made.

Who is affected

  • Tenants and lessees of lodging (residential renters) — gain clearer protection that their partial payments will reduce outstanding rent before fees are assessed.
  • Landlords, property managers, and others who collect rent — must adjust accounting and collection practices to apply partial payments first to rent unless a different allocation is specifically requested by the tenant at payment time.
  • Owners/lessees of agricultural and wild land — clarified annual payment timing when no contrary agreement exists.

Procedural status and timeline

  • Introduced in the North Dakota Senate (Sixty‑ninth Legislative Assembly) by Senators Braunberger, Barta, and Cory; Representatives Foss and Schneider are listed as introducers.
  • Provided materials contain mixed records from multiple jurisdictions (including an unrelated Illinois SB 2235 text). Focusing on the North Dakota bill: the record shows the bill was filed/received by the Secretary of the Senate on March 11, 2025, read and referred to committee.
  • The supplied status line indicates the bill failed on second reading with a recorded vote of yeas 6, nays 40. Other entries in the provided materials are inconsistent (include dates and actions from other jurisdictions); therefore the precise committee and floor chronology may require confirmation from the North Dakota Legislative Assembly’s official records.

Potential impacts / notes

  • The bill does not change dollar amounts, late‑fee caps, or eviction procedures; it only addresses payment timing and the order in which payments are applied.
  • For tenants, the change limits landlords’ ability to divert partial payments to fees rather than to unpaid rent, which can affect eviction calculations and fee accrual.
  • Landlords will need to update payment application policies and tenant communications to reflect the statutory priority, and to document any tenant‑directed alternative allocations at the time of payment.

(Note: The materials provided also included an unrelated Illinois draft of SB 2235 and a listed sponsor (Sen. Sue Rezin) for that measure. This summary focuses on the North Dakota SB 2235 described as amending NDCC § 47‑16‑20.)

Compiled from official sources — confirm details with the bill’s official record.

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