This bill establishes a new chapter in the North Dakota Century Code focused on enhancing data security programs for financial institutions while amending existing regulations related to the Department of Financial Institutions. Key provisions include granting the commissioner or board the authority to suspend or remove officers, directors, or employees of financial institutions for unsafe practices or legal violations, with a new provision for permanent suspension of individuals convicted of dishonesty or breach of trust. The bill also modifies the process for cease and desist orders, allowing for quicker action in cases that threaten financial stability, and introduces definitions such as "authorized user," "consumer," and "customer relationship" to clarify the scope of the regulations.

Additionally, the bill mandates financial corporations to implement comprehensive information security programs that include administrative, technical, and physical safeguards tailored to their operations. It requires the designation of a "qualified individual" to oversee these programs and outlines necessary elements such as risk assessments, access controls, and secure disposal procedures. The legislation emphasizes protecting customer information through measures like multifactor authentication and regular data retention policy reviews. Furthermore, it includes amendments related to mortgage loan originators and debt-settlement providers, enhancing regulatory oversight and consumer protection by updating licensing criteria and notification processes for potential license revocations. Overall, the bill aims to strengthen the security framework for financial institutions and improve consumer protection in North Dakota.

Statutes affected:
PREFILED: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
Adopted by the House Industry, Business and Labor Committee: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
FIRST ENGROSSMENT: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
Adopted by the Senate Industry and Business Committee: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
Enrollment: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18
INTRODUCED: 6-01-04.1, 6-01-04.2, 6-03-02, 13-04.1-01.1, 13-04.1-11.1, 13-05-07.1, 13-08-10, 13-08-11.1, 13-09.1-14, 13-09.1-17, 13-09.1-38, 13-10-05, 13-11-10, 13-12-19, 13-13-04, 13-13-18