80
th Legislative Session _ 2005
Committee: House Commerce
Thursday, February 17, 2005
P - Present
E - Excused
A - Absent
Roll Call
P Boomgarden
P Bradford
P Elliott
P Faehn
P Hunt
P Krebs
P Kroger
P Pederson (Gordon)
P Schafer
P Street
P Willadsen
P Rounds, Vice-Chair
P Sebert, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Chair Sebert.
MOTION:
TO APPROVE THE MINUTES OF FEBRUARY 15, 2005
Moved by: Schafer
Second by: Rounds
Action: Prevailed by voice vote.
SB 83: revise the seller's property condition disclosure statement.
Presented by: Senator Dick Kelly
Proponents: Dean Krogman, SD Assn. Of Realtors (Document #1)
Dee Jones Noordermeer, SD Real Estate Commission
MOTION:
DO PASS SB 83
Moved by: Boomgarden
Second by: Krebs
Action: Prevailed by roll call vote.(12-0-1-0)
Voting Yes: Boomgarden, Bradford, Elliott, Faehn, Hunt, Krebs, Kroger, Schafer, Street,
Willadsen, Rounds, Sebert
Excused: Pederson (Gordon)
MOTION:
PLACE SB 83 ON CONSENT CALENDAR
Moved by: Boomgarden
Second by: Faehn
Action: Failed by voice vote.
SB 82: permit a real estate broker to appoint agents within an office to represent
separate parties to a real estate transaction.
Presented by: Senator Dick Kelly
Proponents: Dean Krogman, SD Assn. Of Realtors
Dee Jones Noordermeer, SD Real Estate Commission
MOTION:
DO PASS SB 82
Moved by: Schafer
Second by: Rounds
Action: Prevailed by roll call vote.(12-0-1-0)
Voting Yes: Boomgarden, Bradford, Elliott, Faehn, Hunt, Krebs, Kroger, Schafer, Street,
Willadsen, Rounds, Sebert
Excused: Pederson (Gordon)
MOTION:
PLACE SB 82 ON CONSENT CALENDAR
Moved by: Schafer
Second by: Faehn
Action: Prevailed by voice vote.
SB 124: clarify certain provisions relating to bank investments in certain annuities.
Presented by: Representative Dale Hargens
Proponents: Tim Kattke, Redfield
Roger Novotny, Division of Banking
Curt Everson, SD Bankers Association
MOTION:
DO PASS SB 124
Moved by: Street
Second by: Kroger
Action: Prevailed by roll call vote.(12-0-1-0)
Voting Yes: Boomgarden, Bradford, Elliott, Faehn, Hunt, Krebs, Kroger, Schafer, Street,
Willadsen, Rounds, Sebert
Excused: Pederson (Gordon)
MOTION:
PLACE SB 124 ON CONSENT CALENDAR
Moved by: Kroger
Second by: Faehn
Action: Prevailed by voice vote.
SB 154: exempt certain entities from the lending license fees and surety bond
requirements.
Presented by: Representative Keri Weems
Proponents: Lynne Keller, SECOG
Roger Novotny, Division of Banking
Curt Everson, SD Bankers Association
MOTION:
AMEND SB 154
154jd
On the Senate Commerce Committee engrossed bill, delete everything after the enacting clause
and insert:
"
Section 1. That
§
54-4-40
be amended to read as follows:
54-4-40.
Any person who engages in the business of lending money shall apply for a license as
prescribed by §§ 54-4-36 to 54-4-63, inclusive. The applicant shall apply for a license under oath on
forms supplied by the division. The application shall contain the name of the applicant's business,
proof of surety bond, address of the business, and other information as required by the director by
rule or order. The applicant shall pay an original license fee as set by rules of the commission
promulgated pursuant to chapter 1-26 not to exceed one thousand dollars. If the application of an
existing licensee is for an additional location, the application need only include the location and
identity of the location manager, plus any changes from the existing license, or such other
information the director may consider necessary.
The State of South Dakota, any political subdivision
of the state, and any quasi-governmental organization created by an executive order of the State of
South Dakota and any subsidiary of such organization; any nonprofit corporation formed pursuant
to chapter 47-22; any nonprofit United States Treasury Community Development Financial
Institution, Small Business Administration Certified Development Company, or Regional Revolving
Loan Fund; or any commercial club, chamber of commerce, or industrial development corporation
formed pursuant to
§
9-12-11 or 9-27-37 is subject to this chapter but exempt from initial license
fees, renewal fees, and surety bond requirements under this chapter.
Section 2. That
§
54-14-2
be amended to read as follows:
54-14-2.
Any person who engages in the business of a mortgage banker or mortgage broker shall
obtain an original license to engage in such business under the terms and conditions of this chapter,
shall apply therefor under oath, on forms prescribed by the division, and shall pay an original,
nonrefundable license fee as set by rules of the commission promulgated pursuant to chapter 1-26.
The fee for a mortgage banker license may not exceed one thousand dollars and the fee for a
mortgage broker license may not exceed five hundred dollars. If the application is approved, a license
shall be issued.
To renew a license, the licensee shall file for renewal by June fifteenth. Licenses shall be renewed
on July first. The commission shall establish a renewal license fee by rules promulgated pursuant to
chapter 1-26. The renewal fee for a mortgage banker license may not exceed one thousand dollars
and the renewal fee for a mortgage broker license may not exceed five hundred dollars.
The State of
South Dakota, any political subdivision of the state, and any quasi-governmental organization created
by an executive order of the State of South Dakota and any subsidiary of such organization; any
nonprofit corporation formed pursuant to chapter 47-22; any nonprofit United States Treasury
Community Development Financial Institution, Small Business Administration Certified
Development Company, or Regional Revolving Loan Fund; or any commercial club, chamber of
commerce, or industrial development corporation formed pursuant to
§
9-12-11 or 9-27-37 is subject
to this chapter but exempt from initial license fees, renewal fees, and surety bond requirements under
this chapter.
Section 3. That
§
54-4-54
be amended to read as follows:
54-4-54.
Each licensee, whether a corporation or otherwise, shall pay the annual tax provided in
chapter 10-43, upon the net income of the licensee, and measured by the net income assignable to
such business in South Dakota. The annual tax provided by this section may not be less than
twenty-four dollars.
The State of South Dakota, any political subdivision of the state, and any quasi-
governmental organization created by an executive order of the State of South Dakota and any
subsidiary of such organization; any nonprofit United States Treasury Community Development
Financial Institution, Small Business Administration Certified Development Company, or Regional
Revolving Loan Fund; or any commercial club, chamber of commerce, or industrial development
corporation formed pursuant to
§
9-12-11 or 9-27-37 is exempt from the payment of this tax.
Section 4. That
§
54-14-6
be amended to read as follows:
54-14-6.
All licensees under this chapter in addition to the license and other fees provided by this
chapter, are required to pay the annual tax provided in chapter 10-43, upon the net income of the
licensee measured by the net income assignable to the licensee's business in South Dakota.
The State
of South Dakota, any political subdivision of the state, and any quasi-governmental organization
created by an executive order of the State of South Dakota and any subsidiary of such organization;
any nonprofit United States Treasury Community Development Financial Institution, Small Business
Administration Certified Development Company, or Regional Revolving Loan Fund; or any
commercial club, chamber of commerce, or industrial development corporation formed pursuant to
§
9-12-11 or 9-27-37 is exempt from the payment of this tax.
Section 5. That
§
54-4-36
be amended by adding thereto a NEW SUBDIVISION to read as
follows:
"Regional revolving loan fund," a regional revolving loan fund with a service area of at least five
South Dakota counties, a designated staff for loan processing and servicing, a loan portfolio of at
least one million dollars, and which is governed by a board of directors that meets at least quarterly.
Section 6. That
§
54-14-1
be amended by adding thereto a NEW SUBDIVISION to read as
follows:
"Regional revolving loan fund," a regional revolving loan fund with a service area of at least five
South Dakota counties, a designated staff for loan processing and servicing, a loan portfolio of at
least one million dollars, and which is governed by a board of directors that meets at least quarterly.
Section 7. That chapter
10-43
be amended by adding thereto a NEW SECTION to read as
follows:
The State of South Dakota, any political subdivision of the state, and any quasi-governmental
organization created by an executive order of the State of South Dakota and any subsidiary of such
organization; any nonprofit United States Treasury Community Development Financial Institution,
Small Business Administration Certified Development Company, or Regional Revolving Loan Fund;
or any commercial club, chamber of commerce, or industrial development corporation formed
pursuant to
§
9-12-11 or 9-27-37 is exempt from the payment of this tax."
Moved by: Krebs
Second by: Rounds
Action: Prevailed by voice vote.
MOTION:
DEFER SB 154 UNTIL TUESDAY, FEBRUARY 22, 2005
Moved by: Willadsen
Second by: Boomgarden
Action: Prevailed by voice vote.
SB 163: authorize certain multiple employer trusts.
Presented by: Representative Mike Vehle
Proponents: Curt Everson, SD Bankers Association
Randy Moses, Division of Insurance
MOTION:
DO PASS SB 163
Moved by: Rounds
Second by: Schafer
Action: Prevailed by roll call vote.(13-0-0-0)
Voting Yes: Boomgarden, Bradford, Elliott, Faehn, Hunt, Krebs, Kroger, Pederson (Gordon),
Schafer, Street, Willadsen, Rounds, Sebert
SB 53: provide for adequate access to health care provider networks.
Presented by: Randy Moses, Division of Insurance
Proponents: Charles McGuigan, Office of Attorney General
Dennis Duncan, Consumer Health Alliance
Sam Wilson, AARP
MOTION:
AMEND SB 53
53jd
On page
2 of the Senate engrossed bill,
line 16, after "chapter" insert "if such person is otherwise
required to be licensed by chapter 58-30".
On page
3
,
delete line
10
, and insert "of its delivery".
On page
3
,
line 11,
delete "
withdrawal from a bank account,
"
.
On page
3
,
line 18,
after "
(1);
"
insert "and".
On page
3
,
line 22,
delete "
;
"
and insert ".".
On page
3
,
delete lines
23 and 24
.
On page
4
,
delete lines
1 and 2
.
On page
4
,
line 5,
after "
card
"
insert "or by means of a telephonic transaction so long as the
disclosures required by this section are provided to the consumer by way of postal mail, facsimile,
or electronic mail within ten business days of the consumer's enrollment".
On page
4
,
line 9,
after "
agreement,
"
insert "thirty days from the receipt of the disclosures
required by section 3 of this Act if the consumer purchased the plan or program over the telephone,".
On page
4
,
line 12,
delete "
to
"
.
On page
4
,
after line 20, insert:
"
Section 6. Any person subject to registration pursuant to section 1 of this Act shall maintain a
surety bond in the amount of twenty thousand dollars issued by a surety company authorized to do
business in this state, or establish and maintain a surety account in the amount of twenty thousand
dollars at a federally insured bank, savings and loan association, or federal savings bank located in
this state. Each surety bond and surety account is subject to the following:
(1) A copy of the bond or a statement identifying the depository, trustee, and account number
of the surety account, and thereafter proof of annual renewal of the bond or maintenance
of the surety account, shall be filed with the director of the Division of Insurance;
(2) A surety account shall be maintained until two years after the date that the person subject
to registration pursuant to section 1 of this Act ceases operations in the state. Funds from
any surety account may not be released to the person subject to registration pursuant to
section 1 of this Act without the specific consent of the attorney general;
(3) No surety on the bond of a person subject to registration pursuant to section 1 of this Act
may cancel such bond without giving written notice thereof to the secretary of state.
Whenever the secretary of state receives notice of a surety's intention to cancel the bond
of a person subject to registration pursuant to section 1 of this Act, the secretary of state
shall notify the affected person that, unless such person files another twenty thousand
dollar surety bond with the secretary of state or establishes a twenty thousand dollar surety
account on or before the cancellation date of such surety bond, then such person subject
to registration pursuant to section 1 of this Act is no longer authorized to do business in
this state;
(4) The bond or surety account shall be in favor of any person and the director of the Division
of Insurance for the benefit of any person who is damaged by any violation of this Act,
including any violation by the supplier or by any other person which markets, promotes,
advertises, or otherwise distributes a discount card on behalf of the supplier. The bond
shall cover any violation occurring during the time period during which the bond is in
effect; and
(5) Any person claiming against the bond or surety account for a violation of this Act may
maintain an action at law against the person subject to registration pursuant to section 1
of this Act and against the surety or trustee of the surety account. The aggregate liability
of the surety or trustee of the surety account to all persons damaged by violations of this
Act may not exceed the amount of the surety bond or account.".
Moved by: Rounds
Second by: Willadsen
Action: Prevailed by voice vote.
MOTION:
DO PASS SB 53 AS AMENDED
Moved by: Rounds
Second by: Schafer
Action: Prevailed by roll call vote.(13-0-0-0)
Voting Yes: Boomgarden, Bradford, Elliott, Faehn, Hunt, Krebs, Kroger, Pederson (Gordon),
Schafer, Street, Willadsen, Rounds, Sebert
MOTION:
ADJOURN
Moved by: Faehn
Second by: Pederson (Gordon)
Action: Prevailed by voice vote.
Cindy Tryon
____________________________
Committee Secretary
Lou Sebert, Chair
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