81
st Legislative Session _ 2006
Committee: Senate Commerce
Thursday, February 16, 2006
P - Present
E - Excused
A - Absent
Roll Call
P Abdallah
P Kelly
P Koetzle
P Schoenbeck
P Sutton (Dan)
P Broderick, Vice-Chair
P McCracken, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Senator McCracken, Chair.
MOTION:
TO APPROVE THE MINUTES OF FEBRUARY 14, 2006.
Moved by: Broderick
Second by: Koetzle
Action: Prevailed by voice vote.
HB 1197: revise certain provisions regarding the reduction of unemployment
benefits.
Presented by: Representative Mike Kroger
Proponents: Sam Wilson, AARP
Representative Deb Peters
Paul Aylward, SD AFL-CIO
Don Kattke, SD Department of Labor
David Owen, SD Chamber of Commerce & Industry
MOTION:
AMEND HB 1197
1197zc
On page
2,
line 12 of the House engrossed bill,
after "
dollars
"
insert "
at the end of any calendar
quarter
".
Moved by: Koetzle
Second by: Abdallah
Action: Prevailed by voice vote.
MOTION:
DO PASS HB 1197 AS AMENDED
Moved by: Koetzle
Second by: Kelly
Action: Prevailed by roll call vote.(7-0-0-0)
Voting Yes: Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken
HB 1185: revise certain provisions regarding directed trusts to include custodial
accounts.
Presented by: Senator Lee Schoenbeck
Proponents: Matt McCaulley, Equity Trust Company (Document 1)
MOTION:
DO PASS HB 1185
Moved by: Schoenbeck
Second by: Sutton (Dan)
Action: Prevailed by roll call vote.(6-0-1-0)
Voting Yes: Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken
Excused: Abdallah
MOTION:
PLACE HB 1185 ON CONSENT CALENDAR
Moved by: Broderick
Second by: Kelly
Action: Prevailed by voice vote.
HB 1209: revise certain provisions regarding money lending.
Presented by: Representative Joni Cutler (Documents 2, 3, and 4)
Proponents: Senator Tom Dempster (Document 5)
Sam Wilson, AARP
Rexford Hagg, Short Term Lending Assn.
Jeremiah Murphy, Citibank of SD
Opponents: Dave Gerdes, Consumer Lending Alliance, Inc. (Document 6)
Michael Demersseman, Consumer Finance Alliance
Harry Christianson, North American Title Loans (Document 7)
Roger Tellinghuisen, SD Trial Lawyers Association
MOTION:
AMEND HB 1209
1209jg
On page
2,
line 21 of the printed bill,
delete "
and
"
.
On page
2
,
line 23,
after "
loan
"
insert "
. A title loan is not a short-term consumer loan for
purposes of this chapter;
(15) "Title lender," a regulated lender authorized pursuant to this chapter to make title loans;
and
(16) "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
".
On page
3
,
line 23,
delete "
twenty
"
and insert "
five
".
On page
6
,
after line 21, insert:
"
Section 12. That chapter
54-4
be amended by adding thereto a NEW SECTION to read as
follows:
A title loan shall be evidenced by a written agreement in which a title lender agrees to make a
title loan to a debtor and the debtor agrees to give the title lender a security interest in a motor
vehicle owned by the debtor. The debtor shall give the title lender possession of the certificate of title
to such motor vehicle. Except as otherwise provided in this chapter, the provisions of chapter 57A-9
apply to title loans and to persons engaged in the business of making title loans.
Section 13. That chapter
54-4
be amended by adding thereto a NEW SECTION to read as
follows:
Any title loan shall be for an initial term of no more than one month but may be renewed for
additional one-month periods. Notwithstanding any other law to the contrary, before the sixth
renewal of a title loan, and at each successive renewal thereafter, the debtor shall make a payment
of at least five percent of the original principal amount of the title loan, in addition to any finance
charges that are due. If at any renewal requiring a principal reduction, the debtor has not made
previous principal reductions adequate to satisfy the current required principal reduction, and the
debtor does not pay at least five percent of the original loan amount, the title lender may either
declare the debtor in default or renew the title loan and defer the required principal payment for an
additional period. However, no further finance charges may accrue or be earned against the principal
amount so deferred. For purposes of this section, a renewal is any extension or continuation of a title
loan for an additional period without any change to the title loan or its terms other than a reduction
in principal.
Section 14. That chapter
54-4
be amended by adding thereto a NEW SECTION to read as
follows:
If a debtor defaults in the repayment of a title loan, the title lender's sole remedy is to seek
possession and sale of the motor vehicle securing the loan, and the title lender may not pursue the
debtor personally in any action or proceeding for repayment of the loan or for any deficiency after
the sale. The title lender shall return to the debtor any surplus obtained after the sale that is in excess
of the amount owed on the loan after any reasonable expenses of repossession, storage, and sale,
including court costs and attorney's fees have been deducted. The remedy limitation provided in this
section does not apply in the following circumstances:
(1) If a debtor obtains a title loan from a title lender under false pretenses by not disclosing
the existence of a valid prior lien or security interest affecting the motor vehicle; or
(2) If the debtor intentionally conceals, impairs, or destroys the collateral.".
Moved by: Broderick
Second by: Schoenbeck
Action: Was not acted on.
MOTION:
AMEND THE AMENDMENT
1209ji
On the pending amendment (1209jg), in the third instruction, delete "
five
" and insert "
ten
".
On the pending amendment (1209jg), in Section 13 in the second sentence, delete "sixth" and
insert "fourth" and delete "five" and insert "ten".
On the pending amendment (1209jg), in Section 13 in the third sentence, delete "five" and insert
"ten".
Moved by: Abdallah
Second by: Kelly
Action: Withdrawn.
MOTION:
AMEND THE AMENDMENT
1209jj
On the pending amendment (1209jg), in the third instruction, delete "
five
" and insert "
ten
".
On the pending amendment (1209jg), in Section 13 in the second sentence delete
"Notwithstanding any other law to the contrary, before the sixth renewal of a title loan, and at each
successive renewal thereafter, the debtor shall make a payment of at least five" and insert "No title
loan may be renewed more than four times. No title loan is valid unless, at the time of the renewal,
the debtor makes a payment of at least ten".
On the pending amendment (1209jg), in Section 13 in the third sentence, delete "five" and insert
"ten".
Moved by: Abdallah
Second by: Kelly
Action: Prevailed by voice vote.
MOTION:
TO TABLE HB 1209 AND THE AMENDMENT
Moved by: Schoenbeck
Second by: Broderick
Action: Failed by roll call vote.(2-5-0-0)
Voting Yes: Schoenbeck, Broderick
Voting No: Abdallah, Kelly, Koetzle, Sutton (Dan), McCracken
MOTION:
DEFER HB 1209 UNTIL TUESDAY, FEBRUARY 21, 2006.
Moved by: Koetzle
Action: Died for a lack of a second
MOTION:
CALL THE QUESTION
Moved by: Kelly
Second by: Schoenbeck
Action: Prevailed by voice vote.
MOTION:
AMEND HB 1209
1209jg
On page
2,
line 21 of the printed bill,
delete "
and
"
.
On page
2
,
line 23,
after "
loan
"
insert "
. A title loan is not a short-term consumer loan for
purposes of this chapter;
(15) "Title lender," a regulated lender authorized pursuant to this chapter to make title loans;
and
(16) "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
".
On page
3
,
line 23,
delete "
twenty
"
and insert "
five
".
On page
6
,
after line 21, insert:
"
Section 12. That chapter
54-4
be amended by adding thereto a NEW SECTION to read as
follows:
A title loan shall be evidenced by a written agreement in which a title lender agrees to make a
title loan to a debtor and the debtor agrees to give the title lender a security interest in a motor
vehicle owned by the debtor. The debtor shall give the title lender possession of the certificate of title
to such motor vehicle. Except as otherwise provided in this chapter, the provisions of chapter 57A-9
apply to title loans and to persons engaged in the business of making title loans.
Section 13. That chapter
54-4
be amended by adding thereto a NEW SECTION to read as
follows:
Any title loan shall be for an initial term of no more than one month but may be renewed for
additional one-month periods. Notwithstanding any other law to the contrary, before the sixth
renewal of a title loan, and at each successive renewal thereafter, the debtor shall make a payment
of at least five percent of the original principal amount of the title loan, in addition to any finance
charges that are due. If at any renewal requiring a principal reduction, the debtor has not made
previous principal reductions adequate to satisfy the current required principal reduction, and the
debtor does not pay at least five percent of the original loan amount, the title lender may either
declare the debtor in default or renew the title loan and defer the required principal payment for an
additional period. However, no further finance charges may accrue or be earned against the principal
amount so deferred. For purposes of this section, a renewal is any extension or continuation of a title
loan for an additional period without any change to the title loan or its terms other than a reduction
in principal.
Section 14. That chapter
54-4
be amended by adding thereto a NEW SECTION to read as
follows:
If a debtor defaults in the repayment of a title loan, the title lender's sole remedy is to seek
possession and sale of the motor vehicle securing the loan, and the title lender may not pursue the
debtor personally in any action or proceeding for repayment of the loan or for any deficiency after
the sale. The title lender shall return to the debtor any surplus obtained after the sale that is in excess
of the amount owed on the loan after any reasonable expenses of repossession, storage, and sale,
including court costs and attorney's fees have been deducted. The remedy limitation provided in this
section does not apply in the following circumstances:
(1) If a debtor obtains a title loan from a title lender under false pretenses by not disclosing
the existence of a valid prior lien or security interest affecting the motor vehicle; or
(2) If the debtor intentionally conceals, impairs, or destroys the collateral.".
Moved by: Broderick
Second by: Schoenbeck
Action: Prevailed by roll call vote.(5-2-0-0)
Voting Yes: Abdallah, Kelly, Schoenbeck, Broderick, McCracken
Voting No: Koetzle, Sutton (Dan)
MOTION:
DO PASS HB 1209 AS AMENDED
Moved by: Schoenbeck
Second by: Koetzle
Action: Prevailed by roll call vote.(7-0-0-0)
Voting Yes: Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken
THE CHAIR DEFERRED HB 1233 UNTIL TUESDAY, FEBRUARY 21, 2006.
MOTION:
ADJOURN
Moved by: Kelly
Second by: Broderick
Action: Prevailed by voice vote.
Grace Curtis
____________________________
Committee Secretary
Royal "Mac" McCracken, Chair
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