The proposed bill seeks to strengthen the regulatory framework for financial institutions in North Dakota by establishing a new chapter focused on data security programs and amending existing sections of the North Dakota Century Code. Key amendments include provisions that empower the commissioner or board to issue permanent suspensions for current or former officers, directors, or employees of financial corporations convicted of dishonesty or breach of trust. The bill also modifies the process for cease and desist orders, allowing for emergency orders to be issued without a prior hearing if there is a significant risk to the financial institution's stability. Additionally, it introduces new definitions relevant to the chapter, such as "authorized user," "consumer," and "financial corporation," which clarify the relationships and responsibilities regarding the handling of nonpublic personal information.

Furthermore, the bill mandates that financial corporations develop and maintain comprehensive information security programs that include administrative, technical, and physical safeguards tailored to their size and the sensitivity of customer information. Specific requirements include monitoring authorized user activities, conducting annual penetration testing, and implementing training for personnel involved in information security. The bill also modifies existing definitions and procedures related to licensing for mortgage loan originators and debt-settlement providers, including the requirement for a notice of disapproval to state the basis for disapproval and the ability for licensees to appeal within twenty days. Overall, these amendments aim to enhance regulatory oversight and ensure the protection of customer information within the financial services sector in North Dakota.

Statutes affected:
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
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
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