93rd Legislative Session _ 2018

Committee: House Commerce and Energy
Wednesday, January 24, 2018

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Beal
P    Gosch
P    Greenfield (Lana)
P    Hawley
P    Johnson
P    May
P    McCleerey
P    Mills
P    Pischke
P    Steinhauer
P    Willadsen
P    Zikmund, Vice-Chair
P    Rounds, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Rounds, Chair.

MOTION:    TO APPROVE THE MINUTES OF JANUARY 22, 2018

Moved by:    Willadsen
Second by:    Pischke
Action:    Prevailed by voice vote.

    HB 1088: revise the consignment sales requirements for dealers of motorcycles, off-road vehicles, snowmobiles, and boats.

Presented by:    Representative Beal
Proponents:    Jim Letendre,Power Brokers Inc
        Myron Rau, South Dakota Auto Dealers Association

MOTION:    AMEND HB 1088


1088ae

    On page 1, line 8, of the printed bill, after "." insert "If the motorcycle or off-road vehicle owner's state does not issue titles for the consigned motorcycle or off-road vehicle, the owner must provide a current state registration and accompanying affidavit stating that their home state does not issue titles for the vehicle being consigned. A bill of sale, the registration, and affidavit of statement must be in the possession of the consignment selling dealer or public auction along with the proper consignment contract. The department shall prescribe the form of the contract.".

    On page 2, line 2, after "state" insert "including any accompanying titled boat trailers".

    On page 2, line 3, after "." insert "If the boat or boat trailer owner's state does not issue titles for the consigned boat or boat trailer, the owner must provide a current state registration and accompanying affidavit stating that their home state does not issue titles for the boat or boat trailer being consigned. A bill of sale, the registration, and affidavit of statement must be in the possession of the consignment selling dealer or public auction along with the proper consignment contract.".

    On page 2, line 6, after "state" insert "including any accompanying titled boat trailer".

    On page 2, line 8, after "state" insert "including any accompanying titled boat trailer".

    On page 2, line 9, after "boat." insert "If the boat or boat trailer owner's state does not issue titles for the consigned boat or boat trailer, the owner must provide a current state registration and accompanying affidavit stating that their home state does not issue titles for the boat or boat trailer being consigned. A bill of sale, the registration, and affidavit of statement must be in the possession of the consignment selling dealer or public auction along with the proper consignment contract.".

    On page 2, line 18, after "consignor." insert "If the snowmobile owner's state does not issue titles for the consigned snowmobile, the owner must provide a current state registration and accompanying affidavit stating that their home state does not issue titles for the snowmobile being consigned. A bill of sale, the registration, and affidavit of statement must be in the possession of the consignment selling dealer or public auction along with the proper consignment contract.".


Moved by:    Willadsen
Second by:    May
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1088 AS AMENDED

Moved by:    Gosch
Second by:    May
Action:    Prevailed by roll call vote. (13-0-0-0)
Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, Johnson, May, McCleerey, Mills, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

MOTION:    AMEND TITLE OF HB 1088

1088wta

    On page 1, line 2, of the printed bill, delete "and boats" and insert "boats, and boat trailers".


Moved by:    Willadsen
Second by:    Hawley
Action:    Prevailed by voice vote.

    HB 1101: revise certain provisions regarding used motorcycles offered for sale at an event.

Presented by:    Representative Rhoden
Proponents:    Myron Rau, South Dakota Auto Dealers Association

MOTION:    DO PASS HB 1101

Moved by:    Willadsen
Second by:    McCleerey
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, Johnson, May, McCleerey, Mills, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

MOTION:    PLACE HB 1101 ON CONSENT CALENDAR

Moved by:    Steinhauer
Second by:    Gosch
Action:    Prevailed by voice vote.

    HB 1078: revise certain provisions regarding the removal of security freezes.

Presented by:    Representative Steinhauer

MOTION:    DO PASS HB 1078

Moved by:    Steinhauer
Second by:    Mills
Action:    Prevailed by roll call vote. (12-0-1-0)
Voting Yes:    Gosch, Greenfield (Lana), Hawley, Johnson, May, McCleerey, Mills, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

Excused:    Beal

    HB 1082: revise certain provisions regarding licensure for the lending of money.

Presented by:    Representative Steinhauer

MOTION:    AMEND HB 1082

1082wa

    On the printed bill, delete everything after the enacting clause and insert:

"    Section1. That § 54-4-36 be amended to read:

    54-4-36. Terms used in this chapter mean:

            (1)    "Advertisement," a commercial message in any medium that aids, promotes, or assists, directly or indirectly, the sale of products or services;
            (2)    "Business of lending money," includes the originating, selling, servicing, acquiring, or purchasing loans of any loan involving a borrower who is a person other than a family member, or the servicing, acquiring, or purchasing of a retail installment contracts contract a party to which is a person other than a family member. The term does not include any seller-financed transaction for the sale of assets to a purchaser or any seller-financed transaction for the sale of real estate through a contract for deed so long as the interest rate for the transaction does not exceed the rate permitted under § 54-4-44;
            (3)    "Commission," the State Banking Commission;
            (4)    "Director," the director of the Division of Banking of the Department of Labor and Regulation;
            (5)    "Division," the Division of Banking;
            (6)    "Duration," the time a loan exists before it is paid off, renewed, rolled over, or flipped;
            (7)    "Family member," includes an immediate family member as the term is defined in § 54-14-12 that includes any descendant of a person's grandparents and any descendant of a person's spouse's grandparents;
            (8)    "Finance charge," the amount, however denominated, which that is the direct or indirect cost payable by a borrower for a loan;
            (8)(9)    "Installment loan," a loan made to be repaid in specified amounts over a certain number of months;
            (9)(10)    "License," a license provided by this chapter;
            (10)(11)    "Installment loan contract" or "contract," an agreement evidencing a an installment loan transaction;
            (11)(12)    "Licensee," any person holding a license;
            (12)(13)    "Loan," any installment loan, single pay loan, or open-end loan which may be

unsecured or secured by real or personal property. The term does not include an installment sales contract as defined under subdivision 54-3A-1(6);

            (13)(14)    "Nationwide mortgage licensing system and registry," a licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators and other regulated entities;
            (14)(15)    "Payday loan," any short-maturity loan on the security of a check, any assignment of an interest in the account of a person at a depository institution, any authorization to debit the person's deposit account, any assignment of salary or wages payable to a person. A short-maturity loan made in anticipation of an income tax refund is not a payday loan for purposes of this chapter;
            (15)(16)    "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 that is governed by a board of directors that meets at least quarterly;
            (16)(17)    "Short-term consumer loan," any loan to any individual borrower with a duration of six months or less, including a payday loan. A title loan is not a short-term consumer loan for purposes of this chapter;
            (17)(18)    "Title lender," a regulated lender authorized pursuant to this chapter to make title loans;
            (18)(19)    "Title loan," a loan for a debtor that is secured by a nonpurchase money security interest in a motor vehicle and that is scheduled to be repaid in a single installment. "


Moved by:    Gosch
Second by:    May
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1082 AS AMENDED

Moved by:    Gosch
Second by:    Pischke
Action:    Prevailed by roll call vote. (11-0-2-0)

Voting Yes:    Gosch, Greenfield (Lana), Hawley, May, McCleerey, Mills, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

Excused:    Beal, Johnson

    HB 1093: authorize certain insurance transactions and policies in a language other than English.

Presented by:    Representative Willadsen
Proponents:    Richard Tieszen, State Farm Insurance
        Doug Abraham, Property Casualty Insurers Association of America
        Drew Duncan, South Dakota Insurance Alliance

MOTION:    DO PASS HB 1093

Moved by:    McCleerey
Second by:    Hawley
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DEFER HB 1093 TO THE 41ST LEGISLATIVE DAY

Moved by:    Greenfield (Lana)
Second by:    Mills
Action:    Failed by roll call vote. (4-9-0-0)

Voting Yes:    Greenfield (Lana), Johnson, May, Mills

Voting No:    Beal, Gosch, Hawley, McCleerey, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

MOTION: DO PASS HB 1093

Moved by:    McCleerey
Second by:    Hawley
Action:    Prevailed by roll call vote. (9-4-0-0)

Voting Yes:    Beal, Gosch, Hawley, McCleerey, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

Voting No:    Greenfield (Lana), Johnson, May, Mills

    HB 1094: revise certain provisions regarding limitations on licensees engaged in the business of making loans.

Presented by:    Representative Bartels
Proponents:    Senator Tapio
        Senator Nesiba
        Bret Afdahl, Department of Labor and Regulation

MOTION:    AMEND HB 1094

1094wb

    On page 1, line 11, of the printed bill, remove the overstrikes from "only".

    On page 1, line 12, delete "or a federal tax identification number".
    On page 1, delete lines 13 and 14, and insert:

"    Section 2. That chapter 54-4 be amended by adding a NEW SECTION to read:

    Notwithstanding § 15-17-39, any person licensed pursuant to this chapter may recover reasonable attorney's fees in the case of default of payment if provided for in a note, bond, or other evidence of debt.".

    Delete pages 2 and 3, inclusive


Moved by:    Steinhauer
Second by:    Beal
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1094 AS AMENDED

Moved by:    Steinhauer
Second by:    Hawley
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, Johnson, May, Mills, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

Excused:    McCleerey

MOTION:    ADJOURN

Moved by:    Beal
Second by:    Pischke
Action:    Prevailed by voice vote.

Nancy Hanson

____________________________

Committee Secretary
Tim Rounds, Chair

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