Legislative Update with Jay Kruse
by Jay Kruse
Chief Advocacy Officer
4/9/2019

Good Morning!

2019 South Dakota Legislative Session Recap.

Following a two week recess and consideration of Governor Noem’s vetoes, the 94th South Dakota Legislative Session has officially ended. It was a busy session in 2019, with 584 pieces of legislation introduced including bills, commemorations, and resolutions. CUAD tracked thirteen bills of interest to credit unions in the state, testifying on SB 37, our Association Healthcare Trust legislation. Eight bills have been signed by the governor, and five bills were defeated or withdrawn.

SD Bills Signed by the Governor:

  • SB 37 - Revises certain provisions regarding association health plans. SD credit unions and other small businesses in the state now have access to association health plans! CUAD testified on this bill in both the Senate and House Committees.
  • SB 113 - Provides that certain information contained within applications for money lending licenses are public records. This does not affect South Dakota credit unions.
  • SB 123 - Provides for the adoption of privacy protection policies. This bill creates privacy protection rules for “nonprofit” corporations which does not affect “not-for-profit” credit unions that distribute profit to their members.
  • HB 1050 - Revises certain provisions regarding the use and possession of scanning devices and reencoders. This bill adds “computer chip” to the list of protected financial information that one cannot “access, read, obtain, memorize, or store, temporarily or permanently,” without authorization. This also makes owning or possessing a scanning device or a reencoder with the intent to obtain or alter information encoded or embedded on a payment card a Class 6 felony.
  • HB 1143 - Revises provisions regarding contribution limits to political action committees.
  • HB 1146 - Revises provisions related to unclaimed property. Any United States savings bond included in the contents of a safe deposit box or other repository must be reported and recorded in the unclaimed property database, independently of the box or repository. It also decreases the aggregate reporting threshold from $50 down to $10, and revises notice requirements and language relating to the sale of abandoned property that the department must follow.
  • HB 1189 - Provides for a period to cure certain campaign finance violations.
  • HB 1272 - Provides for electronic and remote notarization. It creates provisions for electronic notary, with a 10-year record retention requirement for each notarial act. There are some technology requirements associated with this legislation, but the credit union can choose its preferred vendor. It also adds a new conflict of interest provision prohibiting the notarization of a document if you or your spouse has a direct beneficial interest.

SD Bills Defeated or Withdrawn:

  • SB 29 - Revises provisions related to unclaimed property and to declare an emergency.
  • SB 57 - Revises certain provisions regarding the ability to obtain title to unclaimed motor vehicles with unpaid repair bills.
  • HB 1090 - Provides for the establishment of commercial property assessed clean energy programs.
  • HB 1163 - Establishes the Tax Revenue Study Task Force to study tax revenue in this state.
  • HB 1207 - Revises provisions regarding banking.

Please keep an eye on The Memo as Amy will be highlighting any needed compliance and procedural changes you will need to consider in more detail.

 

North Dakota Session Update.

In yesterday’s President’s Perspective, Jeff Olson talked about the importance of our advocacy in action, and how our advocacy is producing results in the Dakotas. Take a look to see how North Dakota credit union professionals have been effective in advocating in support of credit unions.

North Dakota legislators can see the light at the end of the tunnel! Even though the legislature has 80 days to complete its work, they are hoping to wrap things up in the next couple weeks, which would put them roughly 10 days ahead of the May 2nd cutoff.

The Governor signed two Bills on our tracking list this week:

  • HB 1422 - Relating to electronic notification of the administrative code. If you subscribe to Admin codes updates you will now get them as electronic file
  • HB 1485 - Relating to protection against the disclosure of personal information on Foreclosures.

Four Bills passed and are awaiting the Governor’s Signature:

  • HB 2197 - BND's Young and Beginners Farmer program. changes the fixed rate over five years to ten.  
  • SB 2110 - Relating to cybersecurity, Gov's ITD initiative. Study Develop and implement cyber security standards for all branches and state agencies.
  • SB 2179 – Financial Institution guidelines on Financial Exploitation of Vulnerable citizens
  • SB 2162 – Raffle Prize limits. The organization or closely related organizations may only award a primary prize that does not exceed eight thousand dollars and total prizes of all games do not exceed forty thousand dollars per year.

One Bill was defeated:

  • SB 2271 – Relating to the Housing and Financial Fund.

Six Bills are still active and under consideration. 

  • HB 1008 – DFI Appropriations.
  • HB 1106 – ND Insurance Department, Re-insurance coverage, to establish a premium tax and to provide a tax credit.
  • HB 1384 – Relates to individual income tax credit for charitable contributions.
  • HB 1407 – In Conference Committee. Vehicle Titles on abandoned and salvaged vehicles. No impact on CUs.  It includes lienholder notification requirements.
  • HB 1521 – Ethics Commission (House version)
  • SB 2148 – Ethics Commission (Senate version)

Two Bills have hearing this week:

  • HB 1521 – Ethics Commission, Tuesday, April 9 at 4 PM, Senate Ethic Committee, Pioneer Room; April 11 at 4 PM, Pioneer Room
  • HB 2148 – Ethics Commission, Wednesday, April 10 at 2:30, House Ethics Committee, Pioneer Room

If you have questions, concerns, or feedback regarding these or any other advocacy issues, please do not hesitate to contact me. Have a great week!

 

 

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