[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6376132,"mediaKeyId","2140532-92ba47959cf666510ab8d310e0e0a59d","parentId",2140532,"title","Committee hears competing views on regulating cryptocurrency kiosks; AARP, banks and law enforcement urge limits, operators oppose caps","audioSeconds",5515,"startMs",4869000,"endMs",10384000,"viewUrl","/Search/View?dp=1&key=2140532-92ba47959cf666510ab8d310e0e0a59d&start=4869&end=10384","thumbnailUrl","https://assets.pipeline.soar.com/2140532-92ba47959cf666510ab8d310e0e0a59d/thumbnail_4869000.jpg","articleUrl","/articles/6376132/North-Dakota/Committee-hears-competing-views-on-regulating-cryptocurrency-kiosks-AARP-banks-and-law-enforcement-urge-limits-operators-oppose-caps","mediaUrl","https://secure.pipeline.soar.com/6376132-1ebb3cdfd9dcd0e2e9bb9257ef42284c/orig.mp4?Expires=1771164624&Signature=nLj60tCm5B9HFIRaZNlSZWHMyTYJWJEofeyNqExVvehGODB0yUZwnlej-xeV~gXr4eMX~fJGMQRSEnJiz0RSi7~ECpMT~20d9sMSLsLuCwSOV7LSnYBFUH5eAreK9Hgw6K02pxaEHXc27Ukk4NxelTgS2OT2Lomp0S0roRWVkCDNtyBF1wSf97WmJE1KZuhmeEBUEVQh9QUjLKYl7lhMRQfXy9LRs~GnMIH1RfvIN5IjpubhsjSubtR9GQJ4XaVJpNb0uKZgy1mWQNFvLqdbVQtHrZOFw1BMlOKn7hURZvP5XX9H8uUEx-~kRjofeTx7d1iPW~QLLdvh42lp2U4bFw__&Key-Pair-Id=KUT5TJCACFTXG","author","House Industry, Business and Labor, ND","date","2025-01-22T00:00:00Z","article","House Industry, Business and Labor Committee members opened a hearing on House Bill 1447, which would impose licensing, consumer-disclosure and operational requirements on virtual-currency kiosks commonly called cryptocurrency ATMs.

Representative Steve Swiatek, the bill sponsor, said kiosks have proliferated in retail locations and are being used in scams that direct victims to withdraw cash and load it into a kiosk to transfer funds into a criminal-controlled crypto wallet. “There was $6,000,000 that were fraudulently taken away from North Dakotans,” Swiatek told the committee, describing cases in which victims attempted to deposit large sums at kiosks after being coerced by fraudsters.

Josh Askvig, state director for AARP, testified HB 1447 is based on AARP model language and urged consumer protections including licensing, prominently posted fraud warnings and a daily transaction limit. Askvig cited FBI and AARP data showing large dollar losses nationwide and in North Dakota and said kiosks lack the consumer safeguards common to depository institutions. He said the bill requires paper receipts, visible anti-fraud messaging, fee disclosures and a $1,000 daily per-vendor transaction cap in its current form.

Lisa Cruz, commissioner of the Department of Financial Institutions, testified in support and proposed an amendment to place the kiosk rules in the money-transmitter statute (NDCC 13-09.1) where the department already regulates virtual-currency money transmitters. Cruz told the committee the department and banks have reported increases in elder-targeted fraud and that crypto kiosk complaints in North Dakota have included substantial per-person losses; she reiterated that reporting thresholds and suspicious-activity reporting should not be construed to excuse nonreporting by operators who know of possible fraud.

Banks, community bankers and a fraud investigator testified in favor of the bill. Rick Kleberg of the North Dakota Bankers Association and fraud investigator Jacob Rood of First Western Bank described real-world cases. Rood said the bill strikes a reasonable balance by preserving legitimate access while limiting kiosk-driven losses: he described a Minnesota case in which a $50,000 deposit attempt was stopped when a state limit kicked in and the victim recovered most of the funds.

Consumer and elder advocates and the Department of Financial Institutions advocated for: licensing of kiosk operators as money transmitters; conspicuous fraud warnings and steps for victims; quarterly reporting of kiosk locations and transactions; paper receipts containing operator identity and transaction details; blockchain analytics for tracing deposits; a requirement that operators refund fraudulent transactions when identifiable; and a daily transaction limit (the draft sets $1,000 per vendor per day).

Industry witnesses including Ethan McClelland of Bitcoin Depot and Kevin Lawley of CoinFlip acknowledged many consumer-protection provisions but opposed the $1,000-per-day transaction limit, the proposed fee cap (the draft sets a maximum of $5 or 3%, whichever is higher) and a mandatory full-refund requirement. Industry witnesses said low transaction limits could push bad actors to “structure” deposits across machines and thereby reduce law-enforcement reporting; they also said a 3% cap would be the country’s lowest and could force compliant operators to leave the state, leaving less-regulated operators in place. Industry witnesses also described kiosk operational costs—hardware, armored cash transport, compliance, blockchain analytics and live customer support—and asked for additional time to negotiate detailed language.

Opposition testimony included Satoshi Action Fund and online witnesses who urged tailored regulation that requires licensure, robust compliance programs, highly visible warnings, required blockchain analytics and live customer support but warned that strict caps and a full-refund mandate could create perverse incentives.

Committee members asked clarifying questions about transaction reporting, federal SAR/CTR thresholds (FinCEN rules), who bears costs, fee levels and how daily limits interact with federal reporting. The Department of Financial Institutions said money transmitters already file suspicious-activity reports where appropriate and that structuring over several days can itself be suspicious and reportable.

Committee members signaled there is work to do: Representative Koppelman and other members agreed to engage with the sponsor, DFI and stakeholders to refine the bill. No final committee vote was taken; members agreed to continue negotiations and possible amendments in committee work sessions.","mediaType","Video","parentTitle","House Industry, Business and Labor Jan 22, 2025","oneSentenceSummary","The House Industry, Business and Labor Committee heard competing testimony on House Bill 1447, which would license and regulate virtual-currency kiosks (crypto ATMs) with fraud warnings, receipts and transaction controls to limit scam losses.","taxTitle","Industry, Business and Labor, House of Representatives, Legislative, North Dakota","taxId",28894,"location","North Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6376137,"Lawmaker seeks to repeal PERS-era insurance-mandate process; PERS urges retention or amendment",1816,2012000,3828000,"/Search/View?dp=1&key=2140532-92ba47959cf666510ab8d310e0e0a59d&start=2012&end=3828","https://assets.pipeline.soar.com/2140532-92ba47959cf666510ab8d310e0e0a59d/thumbnail_2012000.jpg","/articles/6376137/North-Dakota/Lawmaker-seeks-to-repeal-PERS-era-insurance-mandate-process-PERS-urges-retention-or-amendment","https://secure.pipeline.soar.com/6376137-4972a5ab5f372dddb19c07b46c5422b6/orig.mp4?Expires=1771164624&Signature=X2GQc4RCkXSSrGF1rLMzp0QVYq1j2D2l939HvlWooYvc8ljgVVf25kaGHOxZkRYyCrgYE3b6~Tycr2KCZzrvBhydRak9qzzFGhezTCDq27S23nmyTu4gz2To-ne73hqtelHkY72caHwnx9WErPNLzqOGHI3zUemTTAoElPqrjzb2KQnfgvRay7ugGHzGFc2~vcO~C5bVspTv8BEEx8FAvuUjXf87MxAOw-lzOirAjpvz4TWdJwpQuOqVef48kE3muUFyku~RptovO2HZV70dC7JUT3GvyFZzR7BQDwSlBKl5dRT8ezcO6qfSxaBMkm0EhqWW~Xz3ABVPBrBNvrhRLg__&Key-Pair-Id=KUT5TJCACFTXG","Representative Robin Weiss told the House Industry, Business and Labor Committee that House Bill 1248 was introduced to repeal section 540328 (as cited in testimony) and to remove procedural requirements that have, in his view, made the insurance-mandate review process cumbersome. Weiss said the statute’s original purpose was to require a cost-benefit analysis before a committee took up an insurance-mandate bill and later added steps—including PERS review and a requirement that PERS request introduction of carryover legislation—that have created procedural conflict and delay.

“This process isn’t really working,” Weiss told the committee, arguing the statute’s steps can produce contradictory timing and that PERS should not be required to introduce legislation on mandated coverage. He suggested, alternatively, extending the PERS review period to a full biennium so the PERS actuarial analysis would be more robust.

Rebecca Fricke, executive director of the North Dakota Public Employees Retirement System (PERS), testified in opposition to the portion of the bill that would remove PERS and the Employee Benefits Programs Committee from the current statutory process. Fricke said keeping the process in place allows PERS to commission independent actuarial analysis and to provide timely, technical comments about federal compliance and the state-plan impact—materials she said are critical to informed legislative decision-making. Fricke told committee members that the PERS actuary’s work on the interim bills this cycle has cost the system about $115,000 so far and that, without the current multi-step process, PERS would often have to rely on carrier-provided cost projections for fiscal notes.

Dylan Wheeler, head of government affairs for Sanford Health Plan, also urged preserving a pilot-incubation period. He said the PERS pilot program can provide useful, real-world experience and cited insulin-pricing and manufacturer responses as examples where the pilot period produced actionable market changes.

Representative Schauer and Representative Ruby asked about the timing and costs of analyses; Representative Weiss reiterated that if the committee keeps an upfront process, PERS should have more time to analyze proposals. Fricke offered an amendment (attached to her testimony) that would remove the problematic Section 2 from HB 1248 so the current PERS-related process would remain; she said PERS would be neutral on the bill if that amendment were adopted.

Committee members asked procedural questions about how a future mandate would proceed if HB 1248 passed as written; Representative Weiss answered that a legislator could still introduce a mandate bill, but the upfront PERS review and mandated cost-benefit steps would be removed.

The Department of Insurance’s deputy commissioner, John Arnold, testified about the practical cost and contracting process for the department’s cost-benefit analyses and said the agency must budget for uncertain future costs tied to unpredictable numbers of requested analyses. He noted legislative council historically entered into vendor contracts but the department is the entity carrying invoices.

No vote on HB 1248 occurred during the hearing; the committee closed testimony and said it would hold the bill for further work and potential amendment. Committee members discussed options including repeal, extending PERS review periods, or leaving the mandate process intact but adjusting which entity introduces carryover legislation.","Representative Weiss told the committee House Bill 1248 seeks to repeal a statutory process governing insurance mandates and a PERS pilot-review requirement; the Public Employees Retirement System and insurers warned the changes would hamper timely, independent fiscal and technical analysis of bills affecting state health plans.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6376141,"Committee advances bill to allow ESOP ownership of CPA firms",937,281000,1218000,"/Search/View?dp=1&key=2140532-92ba47959cf666510ab8d310e0e0a59d&start=281&end=1218","https://assets.pipeline.soar.com/2140532-92ba47959cf666510ab8d310e0e0a59d/thumbnail_281000.jpg","/articles/6376141/North-Dakota/Committee-advances-bill-to-allow-ESOP-ownership-of-CPA-firms","https://secure.pipeline.soar.com/6376141-f669df762f5a9e63466783796c924d61/orig.mp4?Expires=1771164624&Signature=VNWdw59xr7eeePpUoM20PEp0Pjn5BBE~fC2QtDVCRxoPHF4Tc6JO9IIWqpYzFMh~FRHI8gP~DXTUh5yJR0btdrLPonmuyaXfdNh6WepsxwocdQ5-LQFs-Yzf4phOuNXsxQjdv-JTlEJvU1M~fsjAguxnXnB7rZs4~xZoFzo-2Dv0XazrKpTWmYZFxUaxY2xtn4dHytvOz1PQnbZxbxDO4U5Jjrwmry22HPgGqHEplWba2gae-UcBoy~KCtt6HD6m~G8ChPGKcHAvzjy8nN3MgcyFXuHOzRkbW1btfqk~hiAIQVNbBO0KkXPPa56TpEc0EC1pH4yVPr1cdZqYKHfDaA__&Key-Pair-Id=KUT5TJCACFTXG","House Industry, Business and Labor Committee members voted to advance House Bill 1156, which would clarify that employee stock ownership plans (ESOPs) may be counted as owners of public accounting firms so long as the beneficial owners that control the ESOP meet the existing licensing-control rules for CPAs.

The bill’s sponsor, Representative Schauer, told the committee “House Bill 1156 would allow CPA firms to be owned by ESOPs,” and said the change is intended to preserve the public-protection purpose of the original law while updating it for modern ownership structures.

Supporters said the change simply lets regulators “look through” an ESOP to confirm that licensed CPAs retain a controlling financial interest. Toby Comer, owner of Hega Comer, a CPA firm headquartered in Fargo, testified the bill would let firms convert from partnership or C-corp structures to ESOP-owned S-corps and therefore provide employees with ownership incentives and tax advantages. Comer said his firm aims to transition to roughly 40% ESOP ownership within four years and potentially to 100% over the long term. He added that ESOPs “give buy-in to the entire organization” and can improve retention.

Mandy Harlow, executive director of the North Dakota Board of Accountancy, testified on behalf of the board and said the board would take a neutral position on HB 1156 because the bill, as drafted, appears to address prior concerns and would require the board to change its administrative rules to implement ESOP ownership.

Committee discussion described the bill as aligning the state’s permit-to-practice rule—under which a majority financial interest must belong to licensed CPAs—with modern qualified retirement plans. Representative Koppelman moved that the committee give HB 1156 a “do pass” recommendation; Representative Greenberg seconded the motion. A roll call recorded the motion’s passage; the clerk recorded the following members as voting yes: Chairman Maury; Vice Chair Ausely; Vice Chair Johnson; Representatives Bail, Greenberg, Casper, Koppelman, Ruby, Schatz, Schauer, Volmer and others recorded on the roll. The committee then stood at ease to continue the agenda.

Supporters included the North Dakota Board of Accountancy (neutral overall) and the North Dakota Society of CPAs; the attorney general’s office reviewed the draft, the sponsor said. The bill text specifies looking through an ESOP to determine beneficial ownership and retains the longstanding requirement that a simple majority of owners by financial interest and voting rights be licensed CPAs.

The committee advanced the bill to the next stage; no floor-level enactment occurred during the hearing. Committee members asked staff to confirm technical details about S-corp conversions and the bill’s interaction with current board rules.

Representative Schauer and witnesses emphasized the bill’s workforce and retention rationale; Comer and others framed ESOP conversion as providing tax and retirement benefits for employees and as a tool to retain accounting talent in the state.

The committee recorded no amendments during the hearing and asked staff to confirm rule text changes required for the Board of Accountancy if the bill advances further.

The Committee then moved to other items on its agenda.","A House committee voted to advance House Bill 1156, which would allow employee stock ownership plans (ESOPs) to hold ownership interests in certified public accounting firms while preserving the requirement that licensed CPAs retain effective control.","actionData","errors"]

Article not found

Committee hears competing views on regulating cryptocurrency kiosks; AARP, banks and law enforcement urge limits, operators oppose caps

Lawmaker seeks to repeal PERS-era insurance-mandate process; PERS urges retention or amendment

Committee advances bill to allow ESOP ownership of CPA firms