State of South Dakota  
EIGHTY-SEVENTH SESSION
LEGISLATIVE ASSEMBLY, 2012  

400T0178   HOUSE COMMERCE AND ENERGY ENGROSSED    NO.  HB 1035 -  1/30/2012  

Introduced by:    The Committee on Commerce and Energy at the request of the Department of Labor and Regulation
 

        FOR AN ACT ENTITLED, An Act to allow the disclosure of the status of certain insurance investigations and examinations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That chapter 58-4 be amended by adding thereto a NEW SECTION to read as follows:
    The status, existence, or outcome of any ongoing or completed investigation or examination performed pursuant to this title may be disclosed by the director to any person who has filed a complaint or report to the director pertaining to the specific investigation or examination. Confidential information shared with the director may not be disclosed. However, nothing in this section prevents the director from providing a copy of licensee responses or other materials submitted by a licensee to complaints or inquiries if the response or materials are not specifically marked confidential. This Act does not apply to investigations conducted pursuant to chapter 58-4A.
    Section 2. That chapter 58-4 be amended by adding thereto a NEW SECTION to read as

follows:

    Terms used in sections 2 to 6, inclusive of this Act, mean:
            (1)    "Return information," any information collected, prepared or received by the division which relates to a return, including the nature or amount of a taxpayer's income, receipts, deductions, net worth, tax liability, or deficiencies, or any part of any written determination or background file documents relating to such information. The term does not include data in a form which cannot be associated with or otherwise identify, directly or indirectly, a particular taxpayer;
            (2)    "Returns," all tax returns, tax reports or claims for refund which are filed with the division.
    Section 3. That chapter 58-4 be amended by adding thereto a NEW SECTION to read as follows:
    Each list of premium taxpayers compiled by the division is confidential. It is a Class 2 misdemeanor to disclose any list except to the extent necessary to carry out the official duties of the division.
    Section 4. That chapter 58-4 be amended by adding thereto a NEW SECTION to read as follows:
    A premium tax return and premium tax return information is confidential. It is a Class 1 misdemeanor to disclose this information except pursuant to sections 2 through 6 of this Act.
    Section 5. That chapter 58-4 be amended by adding thereto a NEW SECTION to read as follows:
    A premium tax return and premium tax return information may be disclosed to the following:
            (1)    The taxpayer who is required to submit the information to the division, or his

designee appointed in writing; or

            (2)    As otherwise authorized by Title 58.
    Section 6. That chapter 58-4 be amended by adding thereto a NEW SECTION to read as follows:
    A premium tax return and premium tax return information may be disclosed in a judicial or administrative proceeding:
            (1)    If the information is directly related to the resolution of an issue in the proceeding; or
            (2)    To the extent required by a judicial or administrative order.