2020 South Dakota Legislature | February 28, 2020 Legislative News – Week #7 raise concerns about the measure. By way of background, the SDBA opposed legislation introduced in SB133 – Allow Government reserves to be invested in 2017 to allow counties to shop their deposits statewide. certificates of deposit or time deposits in banks We lost that battle by overwhelming margins in both outside of South Dakota. As previously discussed, houses. SJR502 proposed to amend South Dakota’s Constitution to allow units of local government (counties, cities, I did raise industry concerns during the committee school districts, etc.) to send up to 20% of their cash hearing on SB133. I suggested it is sound public policy reserves to the State Treasurer for deposit into a Pooled to keep local government reserves in local banks as a Local Government Investment Fund. Those funds would source of funding for loans to local residents and main be transferred to the South Dakota Investment Council street businesses. I also asserted that local governments for investment in a diverse portfolio of stocks, bonds, (counties, cities and K-12 schools) receive the lion’s mutual funds and the like. This proposal, sponsored by share (73%) of the franchise tax paid by community and Sen. Jeff Partridge (R-Rapid City,) was tabled in favor of commercial banks in South Dakota. In FY2019, that a hoghouse amendment to SB133. amounted to $36 million contributed to local treasuries. As approved by a vote of 7-1 in the Senate Members of the SDBA Board of Directors convened via Appropriations Committee on Tuesday and the full conference call earlier this afternoon to review the Senate by a vote of 34-1 on Thursday, SB133 expands current status of SB133. Board members reaffirmed the the list of allowable investments for any government SDBA’s opposition to SB133, directing me to ask funds not needed for current operating expenses. bankers to contact members of the House Committee Added to the list of permitted investments under SB133 on Appropriations to express industry concerns about would be “certificates of deposit or time deposits shopping government reserves outside the state of issued by any bank, trust company, or national South Dakota. Members of that committee include: banking association organized under the laws of any state or of the United States of America and insured by • Chairman Rep. Chris Karr – Sioux Falls the Federal Deposit Insurance Corporation.” • Vice Chair Rep. Jean Hunhoff – Yankton • Rep. Hugh Bartels – Watertown Here is a link to SB133 as passed by the full Senate. • Rep. Randy Gross – Elkton https://mylrc.sdlegislature.gov/api/Documents/68614.pdf • Rep. Taffy Howard – Rapid City • Rep. Lance Koth – Mitchell Members of the SDBA Board of Directors and Legislative • Rep. Sue Peterson – Sioux Falls Committee discussed SJR502 when they met on Feb. 12 • Rep. Doug Post – Volga and decided to take no position on the proposed • Rep. Michael Saba – Hartford constitutional amendment. The proposal embodied in SB133 was not discussed because it didn’t exist at the Contact information for each of those members can be time. In fact, the language of SB133 was first released found on the Legislative Research Council’s website at about 24 hours prior to the Senate Appropriations http://sdlegislature.gov/Legislators/default.aspx?Sessio Committee hearing at 8 a.m. Wednesday morning. I n=2020. sent the new language to SDBA Board members on Tuesday evening asking if they felt the SDBA should Page 1 of 2 Published Weekly During Session by the South Dakota Bankers Association PO Box 1081 | 109 W Missouri Ave | Pierre, SD 57501 | 605.224.1653 | 800.726.7322 | www.sdba.com An official hearing date and time hasn’t been set but will likely occur either Tuesday or Wednesday, March 3 or 4. HB1126 and HB1127 - Allow Appraisers and Real Estate Brokers to Prepare Evaluations of Real Property. As expected, these two measures breezed through hearings in the Senate Taxation Committee on Monday morning, receiving unanimous support. The committee elected to place both bills on the Senate consent calendar, where they were approved on Tuesday afternoon. Next stop will be the Governor’s desk. I want to publicly thank Rep. Roger Chase (R-Huron) for serving as the prime sponsor of both these pro-banking, pro- consumer bills. SB104 – Limit Entitlement to Mechanics Liens. As stated previously, this bill was introduced in response to a contractual dispute over quality of work between a prime contractor and a subcontractor involved in a road grading project on a rural road in Meade County. Multiple landowners adjoining the project found themselves subject to mechanics liens placed against their property by the subcontractor. As amended and passed by the Senate Commerce Committee on Tuesday, an owner of real property upon which a county highway or road has been constructed, improved, maintained or repaired is not liable for the cost of the project, and no mechanics lien may be attached unless the real property owner agreed in writing to pay all or a portion of the cost of the project. SB104 as amended passed the full Senate on Thursday by a vote of 29-6. That’s it for this week. Questions or concerns? Please give me a shout! • Office Phone: 605.224.1653 • Cell Phone: 605.280.7985 • Email: [email protected] Page 2 of 2 Published Weekly During Session by the South Dakota Bankers Association PO Box 1081 | 109 W Missouri Ave | Pierre, SD 57501 | 605.224.1653 | 800.726.7322 | www.sdba.com .