The final week of the SD 2013 Legislative Session ended at 11:56 p.m. on Friday after legislators adopted a $4.09 billion budget for FY 2014, which begins on July 1, 2013.

The legislature will reconvene on Monday, March 25, for the final day of session. This day is reserved for legislators to consider any vetoes. To date, the Governor has not vetoed any bills. He has signed 154bills. There are 107 bills on the Governor’s desk awaiting his signature or veto.

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

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.

StatusPassed House and Senate; signed by Governor.

 

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.

StatusPassed House and Senate; delivered to Governor.

 

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.

 

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.

 

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.

 

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; signed by Governor.

 

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.

StatusPassed 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.

 

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.

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.

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 and Senate; delivered to Governor.

 

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.

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.

 

Sponsor Representative Wick

TitleAn 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.

 

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 and House; delivered to Governor.

 

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; signed by Governor.

 

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.

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; delivered to Governor.

 

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.

 

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.

 

Sponsor Senator Krebs

Title An Act to establish a subordinate agricultural supplier's lien for an unpaid charge account billing statement.

Summary This bill entitles a person who furnishes agricultural supplies for the production of agricultural property to a producer to file an agricultural supplier's lien upon the agricultural property produced by the use of the agricultural supplies. The lien may not be filed to secure money advanced or loaned for any purpose, and may only be filed against a producer for unpaid agricultural supplies where payment was due in full to the person who furnished agricultural supplies not more than thirty days after the billing statement date. The lien shall be valid for five years from the date of filing or until satisfied, whichever occurs first. The lien is subordinate to the rights of a person entitled to priority under the UCC and subordinate to a person that becomes a lien creditor before the earlier of the time the lien is perfected or a financing statement covering the collateral is filed.

Status    Failed to pass Senate Agriculture and Natural Resources Committee.