HB 1005 — Relating to the salary of the state treasurer; and to declare an emergency.

Is purchased by a remitter and made payable to a designated payee;

b.

Is signed by an officer or employee of the financial organization;

c.

Authorizes payment of the amount shown on the check's face to the payee;

d.

Is a direct obligation of the financial organization;

and e.

Is provided to a customer of the financial institution or acquired from the financial institution for remittance purposes.

7.

"Commissioner" means the commissioner of university and school lands.

8.6.

"Confidential record" has the same meaning as defined in section 44-04-17.1.

9.

"Department" means the department of trust lands.

10.7.

"Domicile" means:

a.

For a corporation, the state of its incorporation;

b.

For a business association whose formation requires a filing with a state, other than a corporation, the state of its filing;

c.

For a federally chartered entity, the state of its home office;

and d.

For any other holder, the state of its principal place of business.

11.8.

"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

12.9.

"Electronic mail" means a communication by electronic means, together with attachments, which is automatically retained and stored and may be readily accessed or retrieved.

13.10.

"Financial organization" means a savings and loan association, building and loan association, savings bank, industrial bank, bank, banking organization, private banker, trust company, credit union, or an organization defined as a bank or banking organization under the laws of this state or of the United States.

14.11.

"Game-related digital content" means digital content that exists only in an electronic game or electronic-game platform.

a.

The term includes:

(1) Game-play currency such as a virtual wallet, even if denominated in United States currency;

and Page No.

4 25.0149.02000 Sixty-ninth Legislative Assembly (2) The following if for use or redemption only within the game or platform or another electronic game or electronic-game platform:

(a) Points sometimes referred to as gems, tokens, gold, and similar names;

and (b) Digital codes;

and b.

The term does not include an item that the issuer:

(1) Permits to be redeemed for use outside a game or platform for:

(a) Money;

or (b) Goods or services that have more than minimal value;

or (2) Otherwise monetizes for use outside a game or platform.

15.12.

"Gift card" means a record that:

a.

Is usable at:

(1) A single merchant;

or (2) A specified group of merchants;

b.

Is prefunded before the record is used;

and c.

Can be used for purchases of goods or services.

16.13.

"Holder" means a person obligated to hold for the account of, or to deliver or pay to, the owner, property subject to this chapter.

17.14.

"Insurance company" has the same meaning as defined in section 26.1-02-01, and also includes a benevolent society, nonprofit health service corporation, and a health maintenance organization.

18.15.

"Loyalty card" means a record given without monetary consideration under an award, reward, benefit, loyalty, incentive, rebate, or promotional program which may be used or redeemed only to obtain goods or services or a discount on goods or services.

The term does not include a record that may be redeemed for money or otherwise monetized by the issuer.

19.16.

"Mineral proceeds" means an obligation:

a.

To pay resulting from the production and sale of minerals, including net revenue interest, royalties, overriding royalties, production payments, and joint operating agreements;

or Page No.

5 25.0149.02000 Sixty-ninth Legislative Assembly b.

For the acquisition and retention of a mineral lease, including bonuses, delay rentals, shut-in royalties, and minimum royalties.

20.17.

"Money order" means a payment order for a specified amount of money.

The term includes an express money order and a personal money order on which the remitter is the purchaser.

21.18.

"Municipal bond" means a bond or evidence of indebtedness issued by a municipality or other political subdivision of a state.

22.19.

"Net card value" means the original purchase price or original issued value of a stored- value card, plus amounts added to the original price or value, minus amounts used and any service charge, fee, or dormancy charge permitted by law.

23.20.

"Non-freely transferable security" means a security that cannot be delivered to the administrator by the depository trust clearing corporation or similar custodian of securities providing post-trade clearing and settlement services to financial markets or cannot be delivered because there is no agent to effect transfer.

The term includes a worthless security.

24.21.

"Owner" means a person that has a legal, beneficial, or equitable interest in property subject to this chapter or the person's legal representative when acting on behalf of and in the best interest of the owner.

The term includes:

a.

A depositor, for a deposit;

b.

A beneficiary, for a trust other than a deposit in trust;

c.

A creditor, claimant, or payee, for other property;

and d.

The lawful bearer of a record that may be used to obtain money, a reward, or a thing of value.

25.22.

"Payroll card" means a record that evidences a payroll-card account that is directly or indirectly established through an employer and to which electronic fund transfers of the consumer's wages, salary, or other employee compensation, such as commissions, are made on a recurring basis, whether the account is operated or managed by the employer, a third-party payroll processor, a depository institution, or any other person.

Page No.

6 25.0149.02000 Sixty-ninth Legislative Assembly 26.23.

"Person" means an individual, estate, business association, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.

27.24.

"Property" means tangible property described in section 47-30.2-08 or a fixed and certain interest in intangible property held, issued, or owed in the course of a holder's business or by a government, governmental subdivision, agency, or instrumentality.

a.

The term includes:

(1) All income from or increments to the property;

and (2) Property referred to as or evidenced by:

(a) Money, virtual currency, interest, or a dividend, check, draft, deposit, or payroll card;

(b) A credit balance, customer's overpayment, stored-value card, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance;

(c) A security except for:

[1] A worthless security;

or [2] A security that is subject to a lien, legal hold, or restriction evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;

(d) A bond, debenture, note, or other evidence of indebtedness;

(e) Money deposited to redeem a security, make a distribution, or pay a dividend;

(f) An amount due and payable under an annuity contract or insurance policy;

(g) An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit-sharing, employee-savings, supplemental-unemployment insurance, or a similar benefit;

Page No.

7 25.0149.02000 Sixty-ninth Legislative Assembly (h) Intangible property and any income or increment derived from the intangible property held in a fiduciary capacity for the benefit of another person;

(i) Mineral proceeds;

and (j) An in-store credit for returned merchandise.

b.

The term does not include:

(1) Property held in a plan described in section 529A of the Internal Revenue Code, as amended, [26 U.S.C.

529A];

(2) Game-related digital content;

(3) A loyalty card;

or (4) A gift card.

28.25.

"Putative holder" means a person believed by the administrator to be a holder, until the person pays or delivers to the administrator property subject to this chapter or the administrator or a court makes a final determination that the person is or is not a holder.

29.26.

"Record" has the same meaning as defined in section 44-04-17.1.

30.27.

"Security" means:

a.

A security as defined in section 41-08-02;

b.

A security entitlement as defined in section 41-08-02, including a customer security account held by a registered broker-dealer, to the extent the financial assets held in the security account are not:

(1) Registered on the books of the issuer in the name of the person for which the broker-dealer holds the assets;

(2) Payable to the order of the person;

or (3) Specifically indorsed to the person;

or c.

An equity interest in a business association not included in subdivision a or b.

31.28.

"Sign" means, with present intent to authenticate or adopt a record:

a.

To execute or adopt a tangible symbol;

or b.

To attach to or logically associate with the record an electronic symbol, sound, or process.

Page No.

8 25.0149.02000 Sixty-ninth Legislative Assembly 32.29.

"State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

33.30.

"Stored-value card" means a card, code, or other device, including a merchandise credit or rebate card, which is:

a.

Issued on a prepaid basis primarily for personal, family, or household purposes to a consumer in a specified amount, whether or not that amount may be increased or reloaded in exchange for payment;

b.

Redeemable upon presentation at multiple unaffiliated merchants for goods or services or usable at automated teller machines;

and c.

Not a gift card, payroll card, loyalty card, or game-related digital content.

34.31.

"Utility" means a person that owns or operates for public use a plant, equipment, real property, franchise, or license for the following public services:

a.

Transmission of communications or information;

b.

Production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas;

or c.

Provision of sewage or septic services, or trash, garbage, or recycling disposal.

35.32.

"Virtual currency" means a digital representation of value used as a medium of exchange, unit of account, or store of value, which does not have legal tender status recognized by the United States.

The term does not include:

a.

The software or protocols governing the transfer of the digital representation of value;

b.

Game-related digital content;

or c.

A loyalty card or gift card.

36.33.

"Worthless security" means a security whose cost of liquidation and delivery to the administrator would exceed the value of the security on the date a report is due under this chapter.

SECTION 8.

AMENDMENT.

Section 47-30.2-03 of the North Dakota Century Code is amended and reenacted as follows:

47-30.2-03.

(104) Rulemaking.

The commissionerstate treasurer may adopt rules to implement and administer this chapter.

Page No.

9 25.0149.02000 Sixty-ninth Legislative Assembly SECTION 9.

AMENDMENT.

Subdivision j of subsection 1 of section 47-30.2-22 of the North Dakota Century Code is amended and reenacted as follows:

j.

Contain other information the commissionerstate treasurer prescribes by rules.

SECTION 10.

AMENDMENT.

Subsection 4 of section 47-30.2-23 of the North Dakota Century Code is amended and reenacted as follows:

4.

The commissionerstate treasurer may grant an extension of the reporting date for good cause in the event of a national or state emergency.

SECTION 11.

AMENDMENT.

Subsection 1 of section 47-30.2-24 of the North Dakota Century Code is amended and reenacted as follows:

1.

A holder required to file a report under section 47-30.2-21 shall retain records for ten years after the later of the date the report was filed or the last date a timely report was due to be filed, unless a shorter period is provided by rule of the commissionerstate treasurer.

SECTION 12.

AMENDMENT.

Subdivision b of subsection 3 of section 47-30.2-28 of the North Dakota Century Code is amended and reenacted as follows:

b.

Maintain a website or database accessible by the public and electronically searchable which contains the names reported to the administrator of apparent owners for whom property that meets or exceeds the searchable value as set by the commissionerstate treasurer is being held by the administrator.

Property that does not meet or exceed the searchable value must continue to be held by the administrator but may not appear in the searchable website or database.

SECTION 13.

AMENDMENT.

Section 47-30.2-44 of the North Dakota Century Code is amended and reenacted as follows:

47-30.2-44.

(801) Deposit of funds by administrator.

1.

Except as otherwise provided in this section, the departmentstate treasurer shall deposit to the credit of the common schools trust fund all funds received under this chapter, including proceeds from the sale of property under sections 47-30.2-40, 47-30.2-41, 47-30.2-42, and 47-30.2-43.

2.

The departmentstate treasurer shall maintain an account with an amount of funds the commissionerstate treasurer reasonably estimates is sufficient to pay claims allowed under this chapter.

Page No.

10 25.0149.02000 Sixty-ninth Legislative Assembly SECTION 14.

AMENDMENT.

Subsection 2 of section 47-30.2-46 of the North Dakota Century Code is amended and reenacted as follows:

2.

There is appropriated annually theThe amounts necessary are appropriated to the state treasurer on a continuing basis to pay all expense deductions under this section, including:

a.

Any costs in connection with the sale of abandoned property;

b.

Costs of mailing, publication, and outreach efforts in connection with any abandoned property;

c.

Reasonable service charges;

d.

Costs incurred in examining records of holders of property and in collecting the property from those holders;

e.

Funds for the payment of claims;

f.

Funds for the payment of holder refunds;

and g.

Funds for attorney's fees and all other reasonable costs and expenses incurred in an action or suit.

SECTION 15.

AMENDMENT.

Subdivision c of subsection 2 of section 47-30.2-50 of the North Dakota Century Code is amended and reenacted as follows:

c.

The property has a value as provided by rules adopted by the commissionerstate treasurer.

SECTION 16.

AMENDMENT.

Section 47-30.2-53 of the North Dakota Century Code is amended and reenacted as follows:

47-30.2-53.

(906) Action by person whose claim is denied.

Not later than one hundred eighty days after filing a claim under subsection 1 of section 47-30.2-50, the claimant may commence an action against the boardstate treasurer in the Burleigh County district court to establish a claim that has been denied or deemed denied under section 47-30.2-50.

If the boardstate treasurer is successful in a proceeding brought under this section, the district court shall allow the boardstate treasurer to recover court costs;

reasonable costs, fees, disbursements, and expenses incurred by the boardstate treasurer in the proceeding;

and reasonable attorney's fees.

SECTION 17.

AMENDMENT.

Subsection 1 of section 47-30.2-56 of the North Dakota Century Code is amended and reenacted as follows:

Page No.

11 25.0149.02000 Sixty-ninth Legislative Assembly 1.

The commissionerstate treasurer shall adopt rules governing an examination under section 47-30.2-55, including rules for use of an estimation, extrapolation, and statistical sampling in conducting an examination.

An examination commenced after adoption of rules under this subsection must comply with the rules.

SECTION 18.

AMENDMENT.

Subsection 2 of section 47-30.2-57 of the North Dakota Century Code is amended and reenacted as follows:

2.

The records subject to subsection 1:

a.

May be used by the boardstate treasurer in an action to collect property or otherwise enforce this chapter;

b.

May be used in a joint examination conducted with or pursuant to agreements with other states, the federal government, or other governmental entities;

c.

May be disclosed at the discretion of the commissionerstate treasurer, on request, to the person that administers the unclaimed property law of another state for that state's use in circumstances equivalent to circumstances described in sections 47-30.2-54, 47-30.2-55, 47-30.2-56, 47-30.2-57, 47-30.2-58, 47-30.2-59, 47-30.2-60, 47-30.2-61, and 47-30.2-62.

A state to which information is disclosed shall maintain the confidentiality and security of information obtained in a manner substantially equivalent to sections 47-30.2-71, 47-30.2-72, and 47-30.2-73;

d.

May be required to be produced under section 44-04-18.11;

and e.

May be required to be produced by the administrator on request of the person subject to the examination in an administrative or judicial proceeding relating to the property.

SECTION 19.

AMENDMENT.

Section 47-30.2-64 of the North Dakota Century Code is amended and reenacted as follows:

47-30.2-64.

(1203) Action involving another state or foreign country.

1.

The administrator may join another state or foreign country to examine and seek enforcement of this chapter against a putative holder.

2.

The boardstate treasurer may pursue an action on behalf of this state to recover property subject to this chapter but delivered to the custody of another state if the administrator believes the property is subject to the custody of the administrator.

Page No.

12 25.0149.02000 Sixty-ninth Legislative Assembly 3.

The boardstate treasurer may retain an attorney in this state, another state, or a foreign country to commence an action to recover property on behalf of the boardstate treasurer and may agree to pay attorney's fees based in whole or in part on a fixed fee, hourly fee, or a percentage of the amount or value of property recovered in the action.

4.

Expenses incurred by this state in an action under this section must be paid in accordance with section 47-30.2-46.

SECTION 20.

AMENDMENT.

Section 47-30.2-66 of the North Dakota Century Code is amended and reenacted as follows:

47-30.2-66.

(1205) Other civil penalties.

1.

If a holder enters into a contract or other arrangement for the purpose of evading an obligation under this chapter or otherwise willfully fails to perform a duty imposed on the holder under this chapter, the commissionerstate treasurer may require the holder to pay the administrator, in addition to interest as provided in subsection 1 of section 47-30.2-65, a civil penalty of one thousand dollars for each day the obligation is evaded or the duty is not performed, up to a cumulative maximum amount of twenty- five thousand dollars, plus twenty-five percent of the amount or value of property that should have been, but was not reported, paid, or delivered as a result of the evasion or failure to perform.

2.

If a holder makes a fraudulent report under this chapter, the commissionerstate treasurer may require the holder to pay to the administrator, in addition to interest under subsection 1 of section 47-30.2-65, a civil penalty of one thousand dollars for each day from the date the report was made until corrected, up to a cumulative maximum of twenty-five thousand dollars, plus twenty-five percent of the amount or value of any property that should have been reported, but was not included in the report or was underreported.

SECTION 21.

AMENDMENT.

Subsection 4 of section 47-30.2-67 of the North Dakota Century Code is amended and reenacted as follows:

4.

The commissionerstate treasurer may waive up to twenty-five thousand dollars of the penalty or reduce interest.

A request for a waiver or reduction of penalty in excess of Page No.

13 25.0149.02000 Sixty-ninth Legislative Assembly twenty-five thousand dollars must be presented to the board, with the commissioner's recommendation,state treasurer for review and decision.

SECTION 22.

AMENDMENT.

Section 47-30.2-75 of the North Dakota Century Code is amended and reenacted as follows:

47-30.2-75.

Enforcement - Appeals.

The administrator may bring an action in a court of competent jurisdiction to enforce this chapter.

A person in this state aggrieved by an audit that in any form requests the payment of money or a civil penalty is entitled to a hearing before the boardstate treasurer.

A demand for a hearing must be made within thirty days of the request by the administrator.

The request by the administrator must contain notice of the right to a hearing.

The board'sstate treasurer's decision is the final order of the agency and is appealable to the district court.

Any amount of money requested by the administrator which may increase over time is tolled at the time of filing an appeal, retroactive to the date of the request.

SECTION 23.

AMENDMENT.

54-11-13.H.

B.

NO.

1005 - PAGE 2 54-11-13.

SECTION 24.6.

AMENDMENT.EMERGENCY.

SectionThe 54-27-15.1sum of $295,000 in the Northtotal Dakotaspecial Centuryfunds Codeline isitem amendedin section 1 of this Act and reenactedidentified as follows:one-time funding in section 2 of this Act for information technology projects is declared to be an emergency measure.

54-27-15.1.H.

StateB. treasurer's checks, warrants, and warrant-checks - Cancellation - Deposit to common schools trust fund - Subsequent payment - Continuing appropriation.

TheNO. state treasurer, at the beginning of each fiscal year, shall prepare a list of the checks, warrants, and warrant-checks drawn on various depositories which are more than two years old which remain outstanding and unpaid and shall show the number, date, payee, with address of payee if available, amount, and fund, if available, against which said instrument was drawn.

A1005 copy- PAGE 3 ____________________________ ____________________________ Speaker of suchthe listHouse mustPresident thenof bethe usedSenate as____________________________ an____________________________ authorityChief forClerk writingof athe receiptHouse Secretary of the totalSenate This certifies that the within bill originated in the House of suchRepresentatives checkof orthe checksSixty-ninth andLegislative shallAssembly creditof suchNorth amountDakota toand is known on the commonrecords schoolsof trustthat fundbody pursuantas toHouse PageBill No.

141005 25.0149.02000and Sixty-ninththat Legislativetwo-thirds Assemblyof chapterthe 47-30.2.members-elect of the House of Representatives voted in favor of said law.

OneVote: copy of such receipt with list of instruments affected must be provided to the unclaimed property administrator of unclaimed properties.

InYeas the85 eventNays such4 check,Absent warrant,5 or____________________________ warrant-check____________________________ isSpeaker atof anythe subsequentHouse timeChief presentedClerk forof payment,the orHouse aThis claimcertifies isthat madetwo-thirds byof any person for the amountmembers-elect of anythe suchSenate instrument,voted further proceedings must be conducted in accordancefavor withof chaptersaid 47-30.2.law.

TheseVote: expenditures are hereby subject to a standing and continuing appropriation.

SECTIONYeas 25.41 Nays 6 Absent 0 ____________________________ ____________________________ President of the Senate Secretary of the Senate Received by the Governor at ________M.

AMENDMENT.on _____________________________________, 2025.

SubsectionApproved 6at of________M. section 57-38-57 of the North Dakota Century Code is amended and reenacted as follows:

6.on __________________________________________________, 2025.

Upon____________________________ request,Governor theFiled taxin commissionerthis mayoffice furnishthis to___________day the unclaimed property division of the_______________________________________, board2025, ofat university________ ando’clock school________M. landsadministrator, a taxpayer's name, address, and federal identification number for identifying the taxpayer as the owner of an unclaimed voucher authorized by the tax commissioner or to locate the apparent owner of unclaimed property as provided under chapter 47-30.2.

SECTION____________________________ 26.Secretary of State

AMENDMENT.

Subsection 3 of section 57-39.2-23 of the North Dakota Century Code is amended and reenacted as follows:

3.

The commissioner may furnish to workforce safety and insurance, the job insurance division of job service North Dakota, and the secretary of state, upon request of the respective agency, a list or lists of holders of permits issued under this chapter or chapter 57-40.2, together with the addresses and tax department file identification numbers of those permitholders.

The agency may use the list or lists only for the purpose of administering the duties of the agency.

The commissioner may furnish to the unclaimed property division of the board of university and school landsadministrator, upon its request, the name, address, and the permitholder's federal identification number for the sole purpose of identifying the owner of an unclaimed voucher authorized by the commissioner.

SECTION 27.

AMENDMENT.

Subsection 8 of section 57-39.2-23 of the North Dakota Century Code is amended and reenacted as follows:

8.

Upon request, the commissioner may furnish to the unclaimed property division of the board of university and school landsadministrator, a taxpayer's name, address, and federal identification number for identifying the owner of an unclaimed voucher Page No.

15 25.0149.02000 Sixty-ninth Legislative Assembly authorized by the commissioner or to locate the apparent owner of unclaimed property as provided under chapter 47-30.2.

Page No.

16 25.0149.02000