Summary — SB 2028 (North Dakota)
Status (key dates)
- Filed with Secretary of State: 02/25/2025; Introduced: March 7, 2025.
- Enrolled and signed: Enrolled bill signed 06/02/2025; approved by Governor 06/17/2025.
- Expiration (sunset): Act effective through June 30, 2029.
Purpose
- Amend ND Century Code sections governing the Department of Financial Institutions (DFI) to (1) establish that the department’s regulatory fund is a continuing appropriation, (2) shift aspects of budget approval to the state banking board and state credit union board, and (3) require specified reports by the commissioner to the legislative appropriations committees. The bill also aligns salary limitations for the commissioner and deputies with the board-approved budget and adds statutory reporting and accounting requirements.
Key provisions and changes
- Financial Institutions Regulatory Fund (6-01-01.1)
- Confirms a special “financial institutions regulatory fund” to receive fees and other moneys collected under enumerated chapters (e.g., chapters 6-01, 6-03, 6-05, 6-06, 6-10, 13-04.1, 13-05, 13-08, 13-09.1, 13-10, 13-11).
- Declares all moneys in the fund are appropriated on a continuing basis to DFI to carry out its regulatory duties, subject to limits of an annual or biennial budget approved by the state banking board and the state credit union board.
- Requires documentation of fund revenues/expenditures in the manner required by the Office of Management and Budget (OMB).
- Mandates carryforward of any cash balance at the end of a biennium and credits investment earnings to the fund.
Budget approval process (6-01-04)
- Requires the state banking board and the state credit union board to hold a joint meeting to consider the commissioner’s budget recommendation.
- Boards must approve the department’s annual or biennial budget (including FTE counts). A quorum (majority of members) of each board must be present, and approval requires a majority of members present on each board.
Reporting requirements (6-01-10)
- Reinforces biennial combined reporting by the banking and credit union boards to the governor/secretary of state and requires those reports to include commissioner abstracts.
- Adds a requirement that the commissioner prepare and present a report to the House and Senate appropriations committees during each regular legislative session summarizing departmental activity for the current biennium and stating revenues and expenditures for the prior and current biennia (and other information requested by committee chairs).
Salaries (6-01-11 and 6-01-16)
- Specifies that the commissioner’s and deputies’ salaries must be within the amount set in the budget approved by the boards (instead of being tied solely to legislative appropriation language). Expenses remain auditable and payable consistent with other state officers.
Who is affected
- Department of Financial Institutions (operations, budgeting, and accounting).
- State Banking Board and State Credit Union Board (new formal role approving DFI budgets).
- Commissioner, assistant commissioner, deputies, and other DFI staff (salary and FTE determinations tied to board-approved budget).
- Regulated financial institutions (funding source via fees deposited to the regulatory fund).
- Legislative appropriations committees (receive enhanced biennial/legislative-session reports).
Procedural/timeline notes
- The bill creates a continuing appropriation for the regulatory fund but conditions DFI spending on limits set by the boards’ approved annual/biennial budget.
- Reporting and OMB documentation requirements retain legislative oversight channels (commissioner report to appropriations committees).
- The act includes a sunset/expiration provision: effective through June 30, 2029.
Potential impacts (practical considerations)
- Financially, the bill formalizes that fee revenue deposited to the regulatory fund flows to DFI on a continuing basis and that unspent balances carry forward, which can stabilize DFI funding across biennia.
- Governance-wise, budget authority is given a formal role for the two boards (banking and credit union), potentially reducing the Legislature’s direct line-item control but preserving legislative oversight via required reporting.
- Salary and staffing decisions are tied to the board-approved budget, which could streamline internal personnel decisions within the approved budgetary limits.
