North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1441 Compare Versions

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22 Sixty-ninth
33 Legislative Assembly
44 of North Dakota
55 Introduced by
66 Representatives Toman, Christy, Dockter, Hagert, Heilman, D. Johnston
77 Senators Boehm, Paulson
88 A BILL for an Act to create and enact a new chapter to title 51 of the North Dakota Century
9-Code, relating to specie legal tender, the taxation of specie legal tender, and United States
10-central bank digital currencies; to amend and reenact section 41-01-09 of the North Dakota
11-Century Code, relating to the definition of United States central bank digital currency.
9+Code, relating to specie legal tender, the taxation of specie legal tender, and central bank digital
10+currencies; to amend and reenact subsection 17 of section 13-09.1-01, and section 41-01-09 of
11+the North Dakota Century Code, relating to the definition of central bank digital currency and the
12+definition of money.
1213 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
13-SECTION 1. AMENDMENT. Section 41-01-09 of the North Dakota Century Code is
14-amended and reenacted as follows:
15-41-01-09. (1-201) General definitions.
16-1.Unless the context otherwise requires, words or phrases defined in this section, or in
17-additional definitions contained in other chapters of this title which apply to particular
18-chapters or parts of chapters, have the meanings stated.
19-2.Subject to definitions contained in other chapters of this title which apply to particular
20-chapters or parts of chapters:
21-a."Action", in the sense of a judicial proceeding, includes recoupment,
22-counterclaim, setoff, suit in equity, and any other proceeding in which rights are
23-determined.
24-b."Aggrieved party" means a party entitled to pursue a remedy.
25-c."Agreement", as distinguished from "contract", means the bargain of the parties
26-in fact, as found in their language or inferred from other circumstances, including
27-course of performance, course of dealing, or usage of trade as provided under
28-section 41-09-17.
29-Page No. 1 25.0987.02000
30-ENGROSSED HOUSE BILL NO. 1441
31-FIRST ENGROSSMENT
14+SECTION 1. A new chapter to title 51 of the North Dakota Century Code is created and
15+enacted as follows:
16+Definitions.
17+For purposes of this chapter:
18+1."Central bank digital currency" means a digital currency, digital medium of exchange,
19+or digital monetary unit of account issued by the United States federal reserve system,
20+a federal agency, a foreign government, a foreign central bank, a foreign reserve
21+system, or any intergovernmental organization, which is made directly available to a
22+consumer by such entity or processed or validated directly by such entity.
23+2."Specie" means refined precious metal bullion that is coined, stamped, or imprinted
24+with its weight and purity and valued primarily based on its metal content and not its
25+shape or form.
26+3."Specie legal tender" means gold or silver specie issued by the United States or any
27+other form of gold or sliver specie.
28+Specie legal tender.
29+Specie legal tender is legal tender in this state.
30+Page No. 1 25.0987.01000
31+ HOUSE BILL NO. 1441
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56+Specie legal tender - Taxation.
57+The exchange, purchase, or sale of any type or form of specie legal tender may not give
58+rise to any tax liability of any kind.
59+Central bank digital currency - Not legal tender.
60+A central bank digital currency is not legal tender.
61+SECTION 2. AMENDMENT. Subsection 17 of section 13-09.1-01 of the North Dakota
62+Century Code is amended and reenacted as follows:
63+17."Money" means a medium of exchange that is authorized or adopted by the United
64+States or a foreign government or which is legal tender in this state. The term includes
65+a monetary unit of account established by an intergovernmental organization or by
66+agreement between two or more governments. The term does not include a central
67+bank digital currency as defined in section 1 of this Act.
68+SECTION 3. AMENDMENT. Section 41-01-09 of the North Dakota Century Code is
69+amended and reenacted as follows:
70+41-01-09. (1-201) General definitions.
71+1.Unless the context otherwise requires, words or phrases defined in this section, or in
72+additional definitions contained in other chapters of this title which apply to particular
73+chapters or parts of chapters, have the meanings stated.
74+2.Subject to definitions contained in other chapters of this title which apply to particular
75+chapters or parts of chapters:
76+a."Action", in the sense of a judicial proceeding, includes recoupment,
77+counterclaim, setoff, suit in equity, and any other proceeding in which rights are
78+determined.
79+b."Aggrieved party" means a party entitled to pursue a remedy.
80+c."Agreement", as distinguished from "contract", means the bargain of the parties
81+in fact, as found in their language or inferred from other circumstances, including
82+course of performance, course of dealing, or usage of trade as provided under
83+section 41-09-17.
5484 d."Bank" means a person engaged in the business of banking and includes a
5585 savings bank, savings and loan association, credit union, and trust company.
56-e."Bearer" means a person in control of a negotiable electronic document of title or
57-a person in possession of a negotiable instrument, negotiable tangible document
58-of title, or certificated security that is payable to bearer or indorsed in blank.
59-f."Bill of lading" means a document of title evidencing the receipt of goods for
60-shipment issued by a person engaged in the business of directly or indirectly
61-transporting or forwarding goods. The term does not include a warehouse receipt.
62-g."Branch" includes a separately incorporated foreign branch of a bank.
63-h."Burden of establishing" a fact means the burden of persuading the trier of fact
64-that the existence of the fact is more probable than its nonexistence.
65-i."Buyer in ordinary course of business" means a person that buys goods in good
66-faith, without knowledge that the sale violates the rights of another person in the
67-goods, and in the ordinary course from a person, other than a pawnbroker, in the
68-business of selling goods of that kind. A person buys goods in the ordinary
69-course if the sale to the person comports with the usual or customary practices in
70-the kind of business in which the seller is engaged or with the seller's own usual
71-or customary practices. A person that sells oil, gas, or other minerals at the
72-wellhead or minehead is a person in the business of selling goods of that kind. A
73-buyer in ordinary course of business may buy for cash, by exchange of other
74-property, or on secured or unsecured credit, and may acquire goods or
75-documents of title under a pre-existing contract for sale. Only a buyer that takes
76-possession of the goods or has a right to recover the goods from the seller under
77-chapter 41-02 may be a buyer in ordinary course of business. "Buyer in ordinary
78-course of business" does not include a person that acquires goods in a transfer in
79-bulk or as security for or in total or partial satisfaction of a money debt.
80-j."Conspicuous", with reference to a term, means so written, displayed, or
81-presented that, based on the totality of the circumstances, a reasonable person
82-against which it is to operate ought to have noticed it. Whether a term is
83-"conspicuous" or not is a decision for the court.
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116-k."Consumer" means an individual who enters into a transaction primarily for
117-personal, family, or household purposes.
118-l."Contract", as distinguished from "agreement", means the total legal obligation
119-that results from the parties' agreement as determined by this title as
120-supplemented by any other applicable laws.
121-m."Creditor" includes a general creditor, a secured creditor, a lien creditor, and any
122-representative of creditors, including an assignee for the benefit of creditors, a
123-trustee in bankruptcy, a receiver in equity, and an executor or administrator of an
124-insolvent debtor's or assignor's estate.
125-n."Defendant" includes a person in the position of defendant in a counterclaim,
126-cross-claim, or third-party claim.
127-o."Delivery", with respect to an electronic document of title, means voluntary
128-transfer of control and, with respect to an instrument, a tangible document of title,
129-or an authoritative tangible copy of a record evidencing chattel paper, means
130-voluntary transfer of possession.
131-p."Document of title" means a record that in the regular course of business or
132-financing is treated as adequately evidencing that the person in possession or
133-control of the record is entitled to receive, control, hold, and dispose of the record
134-and the goods the record covers and that purports to be issued by or addressed
135-to a bailee and to cover goods in the bailee's possession which are either
136-identified or are fungible portions of an identified mass. The term includes a bill of
137-lading, transport document, dock warrant, dock receipt, warehouse receipt, and
138-order for delivery of goods. An electronic document of title means a document of
139-title evidenced by a record consisting of information stored in an electronic
140-medium. A tangible document of title means a document of title evidenced by a
141-record consisting of information that is inscribed on a tangible medium.
142-q."Electronic" means relating to technology having electrical, digital, magnetic,
143-wireless, optical, electromagnetic, or similar capabilities.
144-r."Fault" means a default, breach, or wrongful act or omission.
145-s."Fungible goods" means:
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118+e."Bearer" means a person in control of a negotiable electronic document of title or
119+a person in possession of a negotiable instrument, negotiable tangible document
120+of title, or certificated security that is payable to bearer or indorsed in blank.
121+f."Bill of lading" means a document of title evidencing the receipt of goods for
122+shipment issued by a person engaged in the business of directly or indirectly
123+transporting or forwarding goods. The term does not include a warehouse receipt.
124+g."Branch" includes a separately incorporated foreign branch of a bank.
125+h."Burden of establishing" a fact means the burden of persuading the trier of fact
126+that the existence of the fact is more probable than its nonexistence.
127+i."Buyer in ordinary course of business" means a person that buys goods in good
128+faith, without knowledge that the sale violates the rights of another person in the
129+goods, and in the ordinary course from a person, other than a pawnbroker, in the
130+business of selling goods of that kind. A person buys goods in the ordinary
131+course if the sale to the person comports with the usual or customary practices in
132+the kind of business in which the seller is engaged or with the seller's own usual
133+or customary practices. A person that sells oil, gas, or other minerals at the
134+wellhead or minehead is a person in the business of selling goods of that kind. A
135+buyer in ordinary course of business may buy for cash, by exchange of other
136+property, or on secured or unsecured credit, and may acquire goods or
137+documents of title under a pre-existing contract for sale. Only a buyer that takes
138+possession of the goods or has a right to recover the goods from the seller under
139+chapter 41-02 may be a buyer in ordinary course of business. "Buyer in ordinary
140+course of business" does not include a person that acquires goods in a transfer in
141+bulk or as security for or in total or partial satisfaction of a money debt.
142+j."Central bank digital currency" means a digital currency, digital medium of
143+exchange, or digital monetary unit of account issued by the United States federal
144+reserve system, a federal agency, a foreign government, a foreign central bank, a
145+foreign reserve system, or any intergovernmental organization, which is made
146+directly available to a consumer by such entity or processed or validated directly
147+by such entity.
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180+k."Conspicuous", with reference to a term, means so written, displayed, or
181+presented that, based on the totality of the circumstances, a reasonable person
182+against which it is to operate ought to have noticed it. Whether a term is
183+"conspicuous" or not is a decision for the court.
184+k.l."Consumer" means an individual who enters into a transaction primarily for
185+personal, family, or household purposes.
186+l.m."Contract", as distinguished from "agreement", means the total legal obligation
187+that results from the parties' agreement as determined by this title as
188+supplemented by any other applicable laws.
189+m.n."Creditor" includes a general creditor, a secured creditor, a lien creditor, and any
190+representative of creditors, including an assignee for the benefit of creditors, a
191+trustee in bankruptcy, a receiver in equity, and an executor or administrator of an
192+insolvent debtor's or assignor's estate.
193+n.o."Defendant" includes a person in the position of defendant in a counterclaim,
194+cross-claim, or third-party claim.
195+o.p."Delivery", with respect to an electronic document of title, means voluntary
196+transfer of control and, with respect to an instrument, a tangible document of title,
197+or an authoritative tangible copy of a record evidencing chattel paper, means
198+voluntary transfer of possession.
199+p.q."Document of title" means a record that in the regular course of business or
200+financing is treated as adequately evidencing that the person in possession or
201+control of the record is entitled to receive, control, hold, and dispose of the record
202+and the goods the record covers and that purports to be issued by or addressed
203+to a bailee and to cover goods in the bailee's possession which are either
204+identified or are fungible portions of an identified mass. The term includes a bill of
205+lading, transport document, dock warrant, dock receipt, warehouse receipt, and
206+order for delivery of goods. An electronic document of title means a document of
207+title evidenced by a record consisting of information stored in an electronic
208+medium. A tangible document of title means a document of title evidenced by a
209+record consisting of information that is inscribed on a tangible medium.
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242+q.r."Electronic" means relating to technology having electrical, digital, magnetic,
243+wireless, optical, electromagnetic, or similar capabilities.
244+r.s."Fault" means a default, breach, or wrongful act or omission.
245+s.t."Fungible goods" means:
178246 (1)Goods of which any unit, by nature or usage of trade, is the equivalent of
179247 any other like unit; or
180248 (2)Goods that by agreement are treated as equivalent.
181-t."Genuine" means free of forgery or counterfeiting.
182-u."Good faith", except as otherwise provided in chapter 41-05, means honesty in
249+t.u."Genuine" means free of forgery or counterfeiting.
250+u.v."Good faith", except as otherwise provided in chapter 41-05, means honesty in
183251 fact and the observance of reasonable commercial standards of fair dealing.
184-v."Holder" means:
252+v.w."Holder" means:
185253 (1)The person in possession of a negotiable instrument that is payable either
186254 to bearer or to an identified person that is the person in possession;
187255 (2)The person in possession of a document of title if the goods are deliverable
188256 either to bearer or to the order of the person in possession; or
189257 (3)The person in control, other than pursuant to subsection 7 of section
190258 41-07-06, of a negotiable electronic document of title.
191-w."Insolvency proceeding" includes an assignment for the benefit of creditors or
259+w.x."Insolvency proceeding" includes an assignment for the benefit of creditors or
192260 other proceeding intended to liquidate or rehabilitate the estate of the person
193261 involved.
194-x."Insolvent" means:
262+x.y."Insolvent" means:
195263 (1)Having generally ceased to pay debts in the ordinary course of business
196264 other than as a result of bona fide dispute;
197265 (2)Being unable to pay debts as they become due; or
198266 (3)Being insolvent within the meaning of federal bankruptcy law.
199-y."Money" means a medium of exchange that is currently authorized or adopted by
200-a domestic or foreign government. The term includes a monetary unit of account
201-established by an intergovernmental organization, or by agreement between two
202-or more countries. The term does not include an electronic record that is a
203-medium of exchange recorded and transferable in a system that existed and
204-operated for the medium of exchange before the medium of exchange was
205-authorized or adopted by the government.
206-z."Organization" means a person other than an individual.
207-aa."Party", as distinguished from "third party", means a person that has engaged in
208-a transaction or made an agreement subject to this title.
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267+y.z."Money" means a medium of exchange that is currently authorized or adopted by
268+a domestic or foreign government, which is legal tender in this state. The term
269+includes a monetary unit of account established by an intergovernmental
270+organization, or by agreement between two or more countries. The term does not
271+include an electronic record that is a medium of exchange recorded and
272+transferable in a system that existed and operated for the medium of exchange
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242-bb."Person" means an individual, a corporation, a business trust, an estate, a trust,
306+before the medium of exchange was authorized or adopted by the government.
307+The term does not include a central bank digital currency.
308+z.aa."Organization" means a person other than an individual.
309+aa.bb."Party", as distinguished from "third party", means a person that has engaged in
310+a transaction or made an agreement subject to this title.
311+bb.cc."Person" means an individual, a corporation, a business trust, an estate, a trust,
243312 a partnership, a limited liability company, an association, a joint venture, a
244313 government, a governmental subdivision, an agency, or an instrumentality, or any
245314 other legal or commercial entity. The term includes a protected series, however
246315 denominated, of an entity if the protected series is established under law other
247316 than this title which limits, or limits if conditions specified under the law are
248317 satisfied, the ability of a creditor of the entity or of any other protected series of
249318 the entity to satisfy a claim from assets of the protected series.
250-cc."Present value" means the amount as of a date certain of one or more sums
319+cc.dd."Present value" means the amount as of a date certain of one or more sums
251320 payable in the future, discounted to the date certain by use of either an interest
252321 rate specified by the parties if that rate is not manifestly unreasonable at the time
253322 the transaction is entered or, if an interest rate is not so specified, a commercially
254323 reasonable rate that takes into account the facts and circumstances at the time
255324 the transaction is entered.
256-dd."Purchase" means taking by sale, lease, discount, negotiation, mortgage, pledge,
325+dd.ee."Purchase" means taking by sale, lease, discount, negotiation, mortgage, pledge,
257326 lien, security interest, issue or reissue, gift, or any other voluntary transaction
258327 creating an interest in property.
259-ee."Purchaser" means a person that takes by purchase.
260-ff."Record" means information that is inscribed on a tangible medium or that is
328+ee.ff."Purchaser" means a person that takes by purchase.
329+ff.gg."Record" means information that is inscribed on a tangible medium or that is
261330 stored in an electronic or other medium and is retrievable in perceivable form.
262-gg."Remedy" means any remedial right to which an aggrieved party is entitled with
331+gg.hh."Remedy" means any remedial right to which an aggrieved party is entitled with
263332 or without resort to a tribunal.
264-hh."Representative" means a person empowered to act for another, including an
333+hh.ii."Representative" means a person empowered to act for another, including an
265334 agent, an officer of a corporation or association, and a trustee, executor, or
266335 administrator of an estate.
267-ii."Right" includes remedy.
268-jj."Security interest" means an interest in personal property or fixtures which
269-secures payment or performance of an obligation. "Security interest" includes any
270-interest of a consignor and a buyer of accounts, chattel paper, a payment
271-intangible, or a promissory note in a transaction that is subject to chapter 41-09.
272-"Security interest" does not include the special property interest of a buyer of
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336+ii.jj."Right" includes remedy.
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370+jj.kk."Security interest" means an interest in personal property or fixtures which
371+secures payment or performance of an obligation. "Security interest" includes any
372+interest of a consignor and a buyer of accounts, chattel paper, a payment
373+intangible, or a promissory note in a transaction that is subject to chapter 41-09.
374+"Security interest" does not include the special property interest of a buyer of
306375 goods on identification of those goods to a contract for sale under section
307376 41-02-46, but a buyer may also acquire a "security interest" by complying with
308377 chapter 41-09. Except as otherwise provided in section 41-02-53, the right of a
309378 seller or lessor of goods under chapter 41-02 or 41-02.1 to retain or acquire
310379 possession of the goods is not a "security interest", but a seller or lessor may
311380 also acquire a "security interest" by complying with chapter 41-09. The retention
312381 or reservation of title by a seller of goods notwithstanding shipment or delivery to
313382 the buyer under section 41-02-46 is limited in effect to a reservation of a "security
314383 interest". Whether a transaction in the form of a lease creates a "security interest"
315384 is determined under section 41-01-11.
316-kk."Send", in connection with a record or notification, means:
385+kk.ll."Send", in connection with a record or notification, means:
317386 (1)To deposit in the mail, deliver for transmission, or transmit by any other
318387 usual means of communication, with postage or cost of transmission
319388 provided for, addressed to any address reasonable under the
320389 circumstances; or
321390 (2)To cause the record or notification to be received within the time it would
322391 have been received if properly sent under paragraph 1.
323-ll."Sign" means, with present intent to authenticate or adopt a record, to execute or
392+ll.mm."Sign" means, with present intent to authenticate or adopt a record, to execute or
324393 adopt a tangible symbol, or attach to or logically associate with the record an
325394 electronic symbol, sound, or process. "Signed", "signing", and "signature" have
326395 corresponding meanings.
327-mm."State" means a state of the United States, the District of Columbia, Puerto Rico,
396+mm.nn."State" means a state of the United States, the District of Columbia, Puerto Rico,
328397 the United States Virgin Islands, or any territory or insular possession subject to
329398 the jurisdiction of the United States.
330-nn."Surety" includes a guarantor or other secondary obligor.
331-oo."Term" means a portion of an agreement that relates to a particular matter.
332-pp."Unauthorized signature" means a signature made without actual, implied, or
333-apparent authority. The term includes a forgery.
334-qq."United States central bank digital currency" means a digital currency, digital
335-medium of exchange, or digital monetary unit of account issued by the United
336-States federal reserve system.
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399+nn.oo."Surety" includes a guarantor or other secondary obligor.
400+oo.pp."Term" means a portion of an agreement that relates to a particular matter.
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370-rr."Warehouse receipt" means a document of title issued by a person engaged in
434+pp.qq."Unauthorized signature" means a signature made without actual, implied, or
435+apparent authority. The term includes a forgery.
436+qq.rr."Warehouse receipt" means a document of title issued by a person engaged in
371437 the business of storing goods for hire.
372438 rr.ss."Writing" includes printing, typewriting, or any other intentional reduction to
373439 tangible form. "Written" has a corresponding meaning.
374-SECTION 2. A new chapter to title 51 of the North Dakota Century Code is created and
375-enacted as follows:
376-Definitions.
377-For purposes of this chapter:
378-1."Specie" means refined precious metal bullion that is coined, stamped, or imprinted
379-with its weight and purity and valued primarily based on its metal content and not its
380-shape or form.
381-2."Specie legal tender" means gold or silver specie issued by the United States or any
382-other form of gold or sliver specie.
383-3."United States central bank digital currency" means a digital currency, digital medium
384-of exchange, or digital monetary unit of account issued by the United States federal
385-reserve system.
386-Specie legal tender.
387-Specie legal tender is legal tender in this state. A person may not be required to offer or
388-accept specie legal tender for the payment of debts, deposit, or any other purpose. A person
389-may not incur liability for refusing to offer or accept specie legal tender, except as specifically
390-provided for by contract.
391-Specie legal tender - Taxation.
392-The exchange, purchase, or sale of any type or form of specie legal tender may not give
393-rise to any tax liability of any kind.
394-United States Central bank digital currency - Not legal tender.
395-A United States central bank digital currency is not legal tender.
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416-20
417-21
418-22
419-23
420-24
421-25
422-26