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HB 1127NORTH DAKOTASession 69State BillSigned into law
Enacted

North Dakota Enacts Financial Institution Data Security Program and Amends Licensing Rules

Original title: 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.

Last action · April 14, 2025: Filed with Secretary Of State 04/11

Bill progressHistory & official text ↓
Introduced
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Passed
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What This Bill Does

North Dakota establishes a comprehensive financial institution data security program and updates regulations concerning department requests, license renewals, cease-and-desist orders, and licensee exemptions under the Department of Financial Institutions. The legislation requires financial corporations to implement administrative, technical, and physical safeguards, including encryption, , and annual . Financial corporations must also report security s involving the information of at least 500 consumers to the commissioner within forty-five days.

Why it matters

Financial corporations operating in North Dakota must now comply with mandated cybersecurity standards, data disposal timelines, and strict incident reporting requirements, while the Department of Financial Institutions gains expanded enforcement and licensing oversight powers.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Financial corporations

Must develop and maintain written information security programs, conduct regular risk assessments and penetration testing, encrypt customer data, and comply with new reporting and licensing requirements.

Directly affected

Department of Financial Institutions

Gains oversight authority to receive data breach notifications, review information security compliance, and enforce administrative orders and license rules.

Directly affected

Consumers

Receive enhanced data protection, encryption standards, and mandatory breach notifications when nonpublic personal information is compromised.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is a financial corporation under this new law?
A financial corporation refers to all entities regulated by the department of financial institutions, excluding traditional financial institutions and credit unions.
When must a financial corporation notify the commissioner of a data breach?
If a involves unencrypted customer information of at least 500 consumers, the financial corporation must notify the commissioner as soon as possible and no later than forty-five days after discovery.
What security safeguards are required for customer information?
Financial corporations must maintain a written information security program featuring risk assessments, access controls, encryption for data at rest and in transit, , secure data disposal policies, and regular monitoring or .

What else do you want to know?

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Where This Stands

Current status: Signed into law.

Procedural history

19 actions
  1. Apr 14, 2025
    Filed with Secretary Of State 04/11
  2. Apr 11, 2025HouseEnrolled
    Signed by Governor 04/10
  3. Apr 8, 2025HouseEnrolled
    Sent to Governor
  4. Apr 8, 2025House
    Signed by Speaker
  5. Apr 4, 2025Senate
    Signed by President
  6. Apr 2, 2025HouseFloor
    Second reading, passed, yeas 89 nays 2
Show 13 earlier actions
  1. Apr 2, 2025House
    Concurred
  2. Mar 14, 2025House
    Returned to House (12)
  3. Mar 13, 2025SenateFloor
    Second reading, passed as amended, yeas 46 nays 1
  4. Mar 12, 2025SenateCommittee
    Amendment adopted, placed on calendar
  5. Mar 11, 2025SenateCommittee
    Reported back amended, do pass, amendment placed on calendar 5 0 0
  6. Mar 10, 2025SenateCommittee
    Committee Hearing 09:30
  7. Feb 18, 2025SenateIntroduced
    Introduced, first reading, referred Industry and Business Committee
  8. Feb 17, 2025Senate
    Received from House
  9. Feb 14, 2025HouseFloor
    Second reading, passed, yeas 78 nays 0
  10. Feb 13, 2025HouseCommittee
    Amendment adopted, placed on calendar
  11. Feb 12, 2025HouseCommittee
    Reported back amended, do pass, amendment placed on calendar 13 0 1
  12. Jan 14, 2025HouseCommittee
    Committee Hearing 02:00
  13. Jan 7, 2025HouseIntroduced
    Introduced, first reading, referred Industry, Business and Labor Committee

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Codification of Comprehensive Cybersecurity Standards

The bill creates an entirely new chapter (13-01.2) specifically dedicated to safeguarding customer information with explicit mandates for encryption, multifactor authentication, and third-party risk management.

Department of Financial Institutions

Connected Entities

State Banking Board, State Credit Union Board, Department of Financial Institutions
OrganizationState Banking Board“Reviews banking matters and emergency cease-and-desist orders.”Map →
OrganizationState Credit Union Board“Reviews credit union matters and emergency orders.”Map →
OrganizationDepartment of Financial Institutions“Regulates financial corporations and institutions in North Dakota.”Map →

Sources

Open source document

ndlegis.gov

Analysis Score

0–100
  • Significance80
    How much this matters to a regular citizen
  • Controversy15
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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