by Tim Dougherty, SD Lead Lobbyist

 

The eighth week of session began last Monday and ended on Thursday. There are just six working days left in the 2013 Session. This week, the legislature will meet from Monday through Friday. Tuesday, March 5, is the last day for a bill to pass both houses, except the FY 2014 budget bill. Wednesday through Friday is reserved for concurrences or conference committees. On Friday, the House and Senate Appropriations Committees will consider various amendments to the budget bill and then pass it on to the full House and Senate for final action. The legislature will recess for two weeks and then return on Monday, March 25, to consider any vetoes.

Earlier this week, Governor Daugaard announced that a special session of the South Dakota Legislature may be necessary if the automatic federal spending cuts that began on Friday have a long-term effect on state programs. Daugaard said the federal spending cuts will have an impact on a number of state programs.  He also said that the state can manage the cuts through FY 2013, which ends on June 30. But, if the federal cuts are prolonged and have significant impacts, he may have to call the Legislature into a special session to adjust next year's state budget.

Below are bills that may be of interest to credit unions. A copy of each bill is available at the following web address: http://legis.state.sd.us/sessions/2013/BillList.aspx

Bill No.            HB 1043

Sponsor Transportation Committee at the request of Department of Revenue
Title                                An Act to authorize the Department of Revenue to establish an

electronic title system for motor vehicles and to revise certain

provisions regarding an electronic lien filing system.

Summary This bill authorizes the department of revenue to establish an electronic title system for motor vehicles. A participant in the electronic title system must submit electronic applications for original vehicle titles in a form and format prescribed by the department. The department must verify the authenticity of the electronic information before the electronic title is issued.

Status             Passed House and Senate; signed by Governor.

Bill No.            HB 1045
Sponsor State Affairs Committee at request of Department of Revenue
Title                     An Act to revise certain provisions regarding alternative apportionment

methods available for determination of the bank franchise tax.
Summary As amended, this bill requires the secretary of revenue to promulgate

rules within six months of any decision to use any of the alternative

apportionment methods available in SDCL 10-43-29.1 for determining a

bank’s net income in South Dakota for purposes of the bank franchise tax.
Status            Passed House; passed Senate State Affairs Committee.

Bill No.            HB 1046
Sponsor State Affairs Committee at request of Department of Revenue

Title                            An Act to increase the penalties for the failure to timely and accurately
pay the bank franchise tax.

Summary This bill increases the criminal penalty for failure to timely and accurately pay the bank franchise tax from a Class 1 misdemeanor to a Class 6 felony and it increases the civil penalty for such offense from $5,000 to $100,000.
Status            Failed to pass House State Affairs Committee.

Bill No.            HB 1053

Sponsor State Affairs Committee at request of Department of Labor & Regulation

Title                     An Act to revise the lending limit for state chartered banks.

Summary for the purpose of calculating loan or credit limitations on state chartered banks, this bill defines a loan to include any credit exposure to a borrower arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between a bank and that borrower.
Status             Passed House and Senate; signed by Governor.

Bill No.            HB 1056

Sponsor State Affairs Committee at request of Department of Labor & Regulation
Title                     An Act to revise various trust and trust company provisions.

Summary This bill revises various regulations governing trust companies.
Status     Passed House and Senate.

Bill No.            HB 1071

Sponsor        Judiciary Committee at request of Chief Justice
Title                     An Act to revise the contents of the application for the discharge of a

civil judgment debt discharged in bankruptcy.

Summary This bill requires that an application for discharge of a judgment be sworn under oath and include a statement that each judgment sought to be discharged was listed on the debtor's bankruptcy schedules, that no judgment sought to be discharged is nondischargeable under the bankruptcy code or no order was entered by the bankruptcy court declaring any of the judgments nondischargeable.

Status             Passed House and Senate.

Bill No.            HB 1096
Sponsor Representative Gosch
Title                      An Act to transfer on death deeds for real property.

Summary This bill authorizes the filing of a transfer on death deed. The deed must: (1) contain the essential elements and formalities of a properly recordable inter vivos deed; (2) state that the transfer to the designated beneficiary is to occur at the transferor's death; (3) state the language of conveyance as required by the standards of title; and (4) be recorded in the public records before the transferor's death in the office of the register of deeds in a county where at least a part of the property is located. The filing of the deed does not affect the rights of any creditors of the decedent.

Status            Passed House; Senate Appropriations Committee deleted the original

text of the bill and replaced it with an appropriation of funds to assist rural counties in the recruitment of attorneys.

Bill No.            HB 1130

Sponsor Representative Hickey

Title                       An Act to revise the amount of personal property exempt from levy in

bankruptcy cases.

Summary This bill increases the personal property exemption for the head of a family from $6,000 to $8,000 and for a single person from $4,000 to $6,000.

Status            Passed House; failed to pass Senate Judiciary Committee.

Bill No.            HB 1131

Sponsor Representative Hickey

Title                     An Act to revise the property exempted from levy in bankruptcy cases.

Summary This bill provides an exemption from levy for an interest in motor vehicles not to exceed $5,000.

Status            Failed to pass House Judiciary Committee.

Bill No.            HB 1171

Sponsor Representative Hickey

Title                      An Act to exempt certain property from bankruptcy levy.

Summary As amended, this bill provides an absolute exemption from levy for health aids professionally prescribed to the debtor or to a dependant of the debtor. It also increases the personal property exemption for the head of a family from $6,000 to $7,000 and for a single person from $4,000 to $5,000.

Status            Passed House; passed Senate Judiciary Committee.

Bill No.            HB 1219

Sponsor Representative Hickey

Title                       An Act to amend the benefit allowance exempt from levy in bankruptcy

cases.

Summary This bill increases the exemption for installment paymetns to any annuitant under annuity contracts from $250 to $350 per month.

Status             Failed to pass House Judiciary Committee.

Bill No.            HB 1231

Sponsor Representative Hajek

Title                      An Act to change the rate and manner of calculation of prejudgment and

postjudgment interest.

Summary This bill changes the prejudgment and post judgment rate of interest in certain actions from a fixed rate of 10 percent to rate equal to 3 percentage points above the prime rate (currently 3.25%) in effect on January first of each year as reported by the federal reserve board in federal reserve statistical release H.15 and published by the state court administrator on the unified judicial system website. It does not apply to prejudgment interest on damages arising from contract if the contract provides a rate of interest (e.g., mortgage, security agreement, etc.).

Status             Failed to pass House Judiciary Committee.

Bill No.            HB 1243

Sponsor Representative Wick

Title                     An Act to protect employees from certain automatic deductions or

transfers for the purpose of funding political contributions.

Summary This bill prohibits a person from consenting to an automatic payroll deduction or checking account transfer for the purposes of making political contributions to a candidate or cause unless the consent is voluntary and entered into prior to any deduction. The consent must be renewed at least annually.

Status             Failed to pass House Commerce Committee.

Bill No.            SB 55

Sponsor Senate State Affairs Committee at request of Department of Revenue
Title                            An Act to make certain form and style changes regarding the bank
franchise tax.

Summary This bill repeals the law that authorizes a bank franchise tax filer to unilaterally elect to make a consolidated report with affiliated corporations, and provides instead that the filer may petition the secretary of revenue to make a consolidated report.

Status            Passed Senate with amendment; passed House State Affairs Committee.

Bill No.            SB 56

Sponsor State Affairs Committee at request of Department of Revenue
Title                  An Act to define a credit card bank and to revise certain provisions
regarding the distribution of the bank franchise tax.

Summary As amended, this bill defines a credit card bank for purposes of the bank franchise tax (a) derives the majority of its income apportioned to this state from the use of credit cards, including income derived from fees, transactional costs, interest, and penalties, and also has total assets over

ten billion dollars; or (b) was subject to the tax imposed by this chapter before July 1, 2013, and ninety-five percent of its tax receipts were historically distributed to the state general fund pursuant to § 10-43-76 before July 1, 2013.

Status              Passed Senate and House.

Bill No.            SB 102

Sponsor          Senator Adelstein

Title                      An Act to regulate the submission of certain filings with the Office of

the Secretary of State.

Summary This bill prohibits the Secretary of State from making and enforcing any rule, policy, protocol, or practice that would prevent any persons from filing hard copy or paper copy in fulfilling an obligation to provide any document, data, information, or other material to the Office of the Secretary of State if the filer elects to do so.

Status            Failed to pass Senate State Affairs Committee.

Bill No.            SB 111

Sponsor           Senator Soholt

Title                       An Act to amend provisions of the Uniform Commercial Code relating

to electronic funds transfers and to declare an emergency.
Summary This bill provides that the funds transfer provisions of the UCC apply to

a funds transfer that is a remittance transfer, as defined in the Electronic

Fund Transfer Act of 1978 unless the remittance transfer is an electronic

fund transfer, as defined in the Electronic Fund Transfer Act of 1978.
Status                         Passed Senate and House.

Bill No.            SB 112

Sponsor Senator Tiedemann

Title                      An Act to repeal the lower rate of tax imposed on income over four

hundred million dollars for the bank franchise tax.

Summary This bill, which is identical to HB 1045, increases the bank franchise tax rate on net income that exceeds $400 million to 6%.

Status            Failed to pass Senate State Affairs Committee.

Bill No.            SB 113

Sponsor Senator Tiedemann

Title                     An Act to increase the penalties for the failure to timely and accurately

pay the bank franchise tax.

Summary This bill, which is identical to HB 1046, increases the criminal penalty for failure to timely and accurately pay the bank franchise tax from a Class 1 misdemeanor to a Class 6 felony and it increases the civil penalty for such offense from $5,000 to $100,000.

Status            Failed to pass Senate State Affairs Committee.

Bill No.            SB 116
Sponsor Senator Krebs