Department of Financial Institutions seeks state authority to enforce federal data‑security rules, clarifies licensing and enforcement powers

Bismarck — Lisa Cruz, commissioner of the North Dakota Department of Financial Institutions, told the Senate Industry and Business Committee she supports House Bill 11‑27, a multi‑section measure she described as “really a modernization bill” that would revise chapters of the North Dakota Century Code and create a new chapter to address data security for non‑depository financial corporations.

The bill would amend multiple provisions in Chapters 6 and 13 to align procedures between bank and nonbank supervision, give the commissioner authority parallel to the State Banking Board in some enforcement actions, and create Chapter 1301.2 to adopt a model data‑security law for nonbanks, Cruz said. “Safeguarding customers’ data is of utmost importance,” she said, arguing that adoption of the model law would give the state the same cybersecurity enforcement authority available to federal regulators.

Why it matters: The change would allow the state to…