STATE AFFAIRS AND GOVERNMENT

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CHAPTER 1

(HB 1065)

Civilian Conservation Corps Museum of South Dakota.


        ENTITLED, An Act to designate the Civilian Conservation Corps Museum of South Dakota in Hill City as the official Civilian Conservation Corps Museum of South Dakota.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-6 be amended by adding a NEW SECTION to read:

    The Civilian Conservation Corps Museum in Hill City is hereby designated as the official Civilian Conservation Corps Museum of South Dakota. No state funds may be provided for the operation or maintenance of the museum.

     Signed March 7, 2016
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CHAPTER 2

(SB 49)

Secretary of State fees revised and an appropriation.


        ENTITLED, An Act to revise certain fees collected by the secretary of state to make an appropriation for an online business registration and filing system, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    If a document, statement, or report is filed in the Office of the Secretary of State pursuant to §§ 47-1A-122, 47-28-6, 47-34A-212, 48-7-206.1, and 48-7A-1208 and the document, statement, or report is not filed electronically, but is able to be filed electronically and is allowed to be filed electronically, an additional fee of fifteen dollars shall be collected. The fee collected pursuant to this section shall be deposited in the general fund.

    Section 2. That § 47-34A-212 be amended to read:

    47-34A-212. The secretary of state shall charge and collect for:

            (a)    Filing the articles of organization in the case of a domestic limited liability company, a filing fee of one hundred fifty dollars. Filing the articles of organization in the case of a foreign limited liability company, a filing fee of seven hundred fifty dollars;

            (b)    Deleted by SL 2004, ch 279, § 2.

            (c)    A reporting fee of fifty dollars, due and payable with the filing of each annual report. Each entity that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state.

    Section 3. That § 1-8-12 be amended to read:

    1-8-12. The secretary of state shall charge a fee of fifty dollars for any expedited service. Expedited service is defined as completion sooner than the normal course of business upon request. The office shall deposit any revenue from this fee into the financing statement and annual report filing fee fund.

    Section 4. That chapter 1-8 be amended by adding a NEW SECTION to read:

    The secretary of state may promulgate rules, pursuant to chapter 1-26, to establish a convenience fee. A convenience fee means a fee charged for the privilege of being able to file by paper or pay a fee by credit card, charge card, debit card, e-checks, or other form of electronic payment. The maximum fee that may be charged for the privilege of being able to file by paper is twenty dollars per filing. The maximum fee that may be charged for payment by credit card, charge card, debit card, e-checks, or other form of electronic payment shall be three percent of the transaction amount.

    Section 5. That § 47-1A-122 be amended to read:

    47-1A-122. The Office of the Secretary of State shall collect the following fees when the documents described in this section are delivered for filing:

            (1)    Articles of incorporation, $150;

            (2)    Application for use of indistinguishable name, $25;

            (3)    Application for reserved name, $25;

            (4)    Notice of transfer of reserved name, $15;

            (5)    Application for registered name, $25;

            (6)    Application for renewal of registered name, $15. A renewal application may be filed between the first day of October and the thirty-first day of December in each year and shall extend the registration for the following year;

            (7) to (9)    Repealed by SL 2008, ch 275, § 27;

            (10)    Articles of domestication, $150;

            (11)    Articles of charter surrender, $150;

            (12)    Articles of domestication and conversion, $150;

            (13)    Articles of entity conversion, $150;

            (14)    Amendment of articles of incorporation, $60;

            (15)    Restatement of articles of incorporation, $60;

            (16)    Articles of merger or share exchange, $60;

            (17)    Articles of dissolution, $10;

            (18)    Articles of revocation of dissolution, $10;

            (19)    Certificate of administrative dissolution, no charge;

            (20)    Application for reinstatement following administrative dissolution, plus any delinquent annual report filing fees for the period prior to before the reinstatement application, $300;

            (21)    Certificate of reinstatement, no charge;

            (22)    Certificate of judicial dissolution, no charge;

            (23)    Application for certificate of authority, $750;

            (24)    Application for amended certificate of authority, $250;

            (25)    Application for certificate of withdrawal, $10;

            (26)    Application for transfer of authority, $25;

            (27)    Certificate of revocation of authority to transact business, no charge;

            (28)    Annual report, $50. Each entity that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state;

            (29)    Articles of correction, $25;

            (30)    Application for certificate of existence or authorization, $20;

            (31)    Amended annual report, $25;

            (32)    Any other document required or permitted to be filed by this chapter, $20.

    The Office of the Secretary of State shall collect a fee of thirty dollars each time process is served on the Office of the Secretary of State under this chapter. The party to a proceeding causing service of process is entitled to recover this fee as costs if the party prevails in the proceeding.

    Section 6. That § 48-7A-1208 be amended to read:

    48-7A-1208. The provisions of § 1-8-10 notwithstanding, the fee for filing the statements and reports provided for in the following sections with the secretary of state is as follows:

            (1)    Section 48-7A-303, Statement of Authority, one hundred twenty-five dollars;

            (2)    Section 48-7A-304, Statement of Denial, ten dollars;

            (3)    Section 48-7A-704, Statement of Dissociation, ten dollars;

            (4)    Section 48-7A-805, Statement of Dissolution, ten dollars;

            (5)    Section 48-7A-907, Statement of Merger, sixty dollars;

            (6)    Section 48-7A-1001, Statement of Qualification, one hundred twenty-five dollars;

            (6A)    Section 48-7A-1001, Statement of Change, ten dollars;

            (7)    Section 48-7A-1003, Annual Report, fifty dollars. Each limited liability partnership, domestic or foreign, that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state;

            (8)    Section 48-7A-1001.1, Statement of Amendment, fifteen dollars;

            (9)    Section 48-7A-1001.2, Statement of Cancellation, ten dollars;

            (10)    Section 48-7A-1102, Statement of Foreign Qualification, one hundred twenty-five dollars;

            (11)    Section 48-7A-1102.1, Statement of Amendment of Foreign Qualification, fifteen dollars;

            (12)    Section 48-7A-1102.2, Statement of Cancellation, ten dollars; and

            (13)    Filing any other statement, ten dollars.

    Section 7. That § 47-28-8 be amended to read:

    47-28-8. The secretary of state shall charge and collect for furnishing a certified copy of any document, instrument, or paper relating to a corporation, one dollar two dollars per page, and fifteen dollars for the certificate and affixing the seal thereto.

    Section 8. That § 1-8-10 be amended to read:

    1-8-10. The secretary of state shall charge the following fees for services performed in the Office of the Secretary of State and shall collect the fees in advance:

            (1)    For making a copy or transcript of any record, instrument, or paper on file in the office, one dollar two dollars per page;

            (2)    For filing and safekeeping of any instrument or paper required by law to be filed only, ten dollars; except the oath of office of members of the Legislature and legislative officers, employees and governmental officers, employees and agencies, for which there is no fee;

            (3)    For each commission, requisition, passport, or other document, signed by the Governor and attested by the secretary of state, under the great seal of the state, except commissions issued for executive appointment and extraditions, and making the proper record for the same, five dollars;

            (4)    For filing application, bond, and issuing commission of notary public, thirty dollars;

            (5)    For official certificate, attestation, and impression of the great seal, five twenty-five dollars;

            (6)    For filing or recording any other instrument or document, ten dollars; and

            (7)    For a certified copy of any document, instrument, or paper on file in the office, one dollar two dollars per page and fifteen dollars for the certificate and affixing the seal.

    Section 9. That § 37-11-1 be amended to read:

    37-11-1. Any person regularly engaging in or conducting a business in this state shall file a fictitious name statement unless one of the following apply:

            (1)    The name of the business plainly shows the true surname of each person interested in the business; or

            (2)    The name of the business is on file with the secretary of state in a required business filing.

    The fictitious name statement shall include the name, post office address, and residence address of each person interested in the business and the address where the main office of the business is to be maintained. The fictitious name statement shall be electronically filed with the secretary of state, or filed in paper form with any register of deeds in the state. The filing shall be renewed every fifth year thereafter. A fee of ten dollars shall be paid with each new filing and renewal. The fee shall be retained by the filing office receiving the filing deposited into the financing statement and annual report filing fee fund.

    Section 10. That § 37-11-2 be amended to read:

    37-11-2. A verified statement as described in § 37-11-1 shall be similarly filed upon any change of twenty-five percent or more of the ownership interest in the business. A fee of ten dollars shall be paid with each filing under this section. The fee shall be retained by the filing office receiving the filing deposited into the financing statement and annual report filing fee fund.

    Section 11. All fees collected by the secretary of state that are not specifically dedicated to the financing and annual report filing fee fund or for administering the concealed carry program pursuant to § 23-7-53 or for administering any concealed carry programs enacted by the Legislature after 2015, shall be deposited in the state general fund.

    Section 12. That § 57A-9-525 be amended to read:

    57A-9-525. (a) Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in subsection (b), is the amount specified in subsection (c), if applicable, plus:

            (1)    Twenty-five dollars if the record is communicated in writing and consists of one page, and five dollars for additional pages. One dollar of this fee shall be deposited into the financing statement and annual report filing fee fund;

            (2)    Twenty dollars if the record is communicated by internet. One dollar of this fee shall be deposited into the financing statement and annual report filing fee fund; and

            (3)    Twenty-five dollars if the record is communicated by another medium authorized by filing-office rule.

    (b) The secretary of state may request a fee for on-line services for UCC data images available on a subscription basis. The office shall deposit any revenue from this fee into the financing statement and annual report filing fee fund.

    (c) Except as otherwise provided in subsection (e), the fee for filing, whether communicated in writing, electronically, or another medium authorized by filing-office rule, and indexing an initial financing statement of the following kind is the amount specified in subsection (c), if applicable, plus:

            (1)    Forty dollars if the financing statement indicates that it is filed in connection with a public-finance transaction;

            (2)    Forty dollars if the financing statement indicates that it is filed in connection with a manufactured-home transaction.

    (c)(d) Except as otherwise provided in subsection (e), if a record is communicated in writing or electronically, the fee for each name more than one required to be indexed is three dollars.

    (d)(e) The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:

            (1)    Twenty dollars if the request is communicated in writing; and

            (2)    Ten dollars if the request is communicated by internet authorized by filing-office rule.

    Upon request the filing officer shall furnish a copy of any filed financing statement or statement of assignment for a uniform fee of one dollar per page.

    (e)(f) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under § 57A-9-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.

    Section 13. There is hereby appropriated from the general fund the sum of seven hundred sixteen thousand dollars ($716,000), or so much thereof as may be necessary, to the secretary of state for the purpose of purchasing and developing software for an online business registration and filing system.

    Section 14. The secretary of state shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by section 13 of this Act.

    Section 15. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 16. Whereas, sections 13 to 15, inclusive, of this Act are necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and sections 13 to 15, inclusive, of this Act shall be in full force and effect from and after its passage and approval.

     Signed March 15, 2016
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CHAPTER 3

(HB 1187)

The Secretary of State may refuse to file certain documents.


        ENTITLED, An Act to allow the Office of the Secretary of State to refuse to file certain documents.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The Office of the Secretary of State may refuse to file any document for any business entity whether domestic or foreign, for profit or nonprofit, as provided in title 47, title 48, chapter 37-6, or chapter 37-11 if the document contains any letter combination that carries connotations offensive to good taste and decency, or consists of immoral, deceptive, or scandalous material.

     Signed March 10, 2016
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CHAPTER 4

(SB 45)

Building South Dakota programs revised.


        ENTITLED, An Act to revise certain provisions of the building South Dakota fund programs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-16G-48 be amended to read:

    1-16G-48. The commissioner of the Bureau of Finance and Management shall authorize and disburse money from the building South Dakota fund for the following purposes:

            (1)    Twenty-five percent of the fund shall be transferred to the local infrastructure improvement grant fund created in § 1-16G-50;

            (2)    Fifteen percent of the fund shall be transferred to the economic development partnership fund created in § 1-16G-51;

            (3)    Thirty percent of the fund shall be transferred to the workforce education fund created in § 13-13-88;

            (4)    Twenty-five percent of the fund shall be transferred to the South Dakota housing opportunity fund created in § 11-13-2. Disbursement of funds to the South Dakota Housing Development Authority shall be made after South Dakota housing opportunity funds have been obligated by the oversight commission created pursuant to § 11-13-8;

            (5)    Five percent of the fund shall be transferred to the revolving economic development and initiative fund created in § 1-16G-3 for the purpose of making grants to projects that have a total project cost of less than twenty million dollars.

    The commissioner of the Bureau of Finance and Management, at the request of the commissioner of the Governor's Office of Economic Development and the approval of the special committee created in § 4-8A-2 or the Senate and House standing committees on appropriations meeting in joint session, shall transfer building South Dakota fund money among the local infrastructure improvement grant fund, the economic development partnership fund, and the revolving economic development and initiative fund, provided the money is unobligated at the time of the request and subsequent transfer.

    Section 2. That § 11-13-5 be amended to read:

    11-13-5. The South Dakota housing opportunity fund may be used to provide a grant, loan, loan guarantee, loan subsidy and other financial assistance to an eligible applicant. Money from the fund may be used to build, buy, and or rehabilitate affordable housing for rent or home ownership, including single family and multifamily housing. The eligible fund activities include affordable housing projects that consist of new construction or the purchase of rental or home ownership housing, substantial or moderate rehabilitation of rental or home ownership housing, housing preservation, including home repair grants and grants to make homes more accessible to individuals with disabilities, homelessness prevention activities, as well as a community land trust. No more than ten percent of the funds awarded may be used for the administrative costs of the South Dakota Housing Development Authority or any entity that has received receives funding from the fund.


    Section 3. That § 11-13-8 be amended to read:

    11-13-8. Awards from the fund shall be made through a competitive process during the initial an application cycle each year. Each application shall be evaluated and scored based on criteria created by the administering agency and the oversight commission. Each applicant that is awarded money from the fund shall be is encouraged to leverage the money for any project or program with other public and private dollars. If there are funds available after the initial application cycle, additional application rounds may be established. Any program income or loan payments received shall be deposited into the fund account held by the South Dakota Housing Authority.

    Section 4. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Before the transfer of money to any fund under § 1-16G-48, the commissioner of the Bureau of Finance and Management shall authorize and disburse money from the building South Dakota fund for the following purposes:

            (1)    An amount to pay for any contracts entered into by the Governor's Office of Economic Development with an implementing partner to provide technical assistance to an applicant or monitoring service for any building South Dakota fund program; and

            (2)    An amount to pay the administrative expenses incurred by the Governor's Office of Economic Development for any building South Dakota fund program. The administrative expenses are limited to the salary and benefits of any personnel directly responsible for the administration of the programs.

    Section 5. That § 1-16G-52 be amended to read:

    1-16G-52. The Board of Economic Development may award funds from the economic development partnership fund for the following purposes:

            (1)    To support new staff, or elevate existing part-time staff and equipment and training needs for the purpose of developing or expanding local, community, and economic development programs. The board may also;

            (2)    To support any recipient's plans to work with other entities for the purpose of developing or expanding local, community, and economic development programs; or

            (3)    To award funds from the economic development partnership fund to commence or replenish a local revolving loan fund for the purpose of developing or expanding housing, community, and economic development programs. Areas of emphasis for funding include creating high quality employment opportunities, repopulation, stronger economies, housing development, business growth, support of entrepreneurship, and job creation, expansion, and retention. When awarding funds for a revolving loan fund, the board may give priority to an application that serves multiple communities. The board may give additional priority to an application that leverages state funds at greater than a one-to-one matching basis.

     Signed March 15, 2016
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CHAPTER 5

(HB 1213)

State support for innovative research by South Dakota companies.


        ENTITLED, An Act to create the new frontiers program to support innovative research by South Dakota companies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Terms used in this Act, mean:

            (1)    "Board," the Board of Economic Development;

            (2)    "Commissioner," the commissioner of the Governor's Office of Economic Development;

            (3)    "Completed the program" or "completion of the program," the first date when the program's schedule of work as outlined in the application required under section 3 of this Act is finished. In the specific case of a clinical trial for a new pharmaceutical product or medical device, this term means the end date of the clinical trial phase undertaken pursuant to approval by a federal authority;

            (4)    "Commencement date," the first date preclinical research or clinical trial activities begin pursuant to a program's schedule of work or the terms of an approval by a federal authority. For a person already engaged in a program and relocating to South Dakota from a foreign jurisdiction, commencement date means the date of first full-time occupancy of an office or other facility located in this state;

            (5)    "Department," the Department of Revenue;

            (6)    "Federal authority," an agency or instrumentality of the United States government authorized under law to regulate the activities of the program, including the U.S. Food and Drug Administration and the National Institutes of Health;

            (7)    "GOED," the Governor's Office of Economic Development;

            (8)    "Person," any individual, firm, copartnership, joint venture, association, cooperative, nonprofit development corporation, limited liability company, limited liability partnership, corporation, estate, trust, business trust, receiver, or any group or combination acting as a unit. The term also includes any heirs, assigns, or successors in interest thereto;

            (9)    "Program," a planned, sustained original research engagement into a new or adapted method, process, product, or technology, or the testing of a new method, process, product, or technology under approval by a federal authority, including a clinical trial for a new pharmaceutical product or medical device;

            (10)    "Program cost," the amount paid by the program owner in money, credits, property, or other consideration associated with a program including contract labor, materials, equipment, supplies, or fees.

    Section 2. That chapter 1-16G be amended by adding a NEW SECTION to read:

    A person may apply for a new frontiers payment pursuant to this Act. The person shall:

            (1)    Timely file an application as required by section 3 of this Act;

            (2)    Receive a permit from GOED pursuant to section 5 of this Act;

            (3)    Timely file an affidavit for new frontiers payment as required by section 6 of this Act; and

            (4)    Comply with the provisions of this Act to qualify for the new frontiers payment.

    A program with a commencement date after March 31, 2016, may receive a new frontiers payment as provided by this Act.

    Section 3. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Before any person receives any new frontiers payment as provided in this Act, the person shall file an application with GOED. The application may be filed no later than thirty days after the commencement date. No person may receive a new frontiers payment if the application is not timely filed with GOED.

    The application shall include the following information:

            (1)    The program owner's name and contact information;

            (2)    The general description of the program;

            (3)    The commencement date of the program;

            (4)    The projected date for completion of the program;

            (5)    A schedule of work for the program;

            (6)    The estimated program costs;

            (7)    The location of the program;

            (8)    A list of the anticipated contractors and subcontractors who will perform work on the program;

            (9)    A copy of any approval notification by a federal authority;

            (10)    A commitment from the program owner to manufacture or process the product resulting from the program in South Dakota; and

            (11)    Any other information that GOED may require.

    The application shall be on a form prescribed by the commissioner. The application shall be signed by the program owner under penalty of perjury. No application may include more than one program.

    Section 4. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The board shall review the application and make a determination of whether the program shall be approved or disapproved. The board may approve a new frontiers payment that is equal to or less than South Dakota sales and use tax paid on the program costs.

    The board shall consider the following factors when making that determination:

            (1)    Is the program in an industry or sector identified by GOED as a priority for economic development;

            (2)    Is the program likely to lead to future economic development or commercialization opportunities located in South Dakota;

            (3)    Impact of the program on current economic activity in the community, area, and state;

            (4)    Extent to which program costs are subject to similar taxes in other states; and

            (5)    Criteria pertaining to eligible activities and economic impact established by rules promulgated pursuant to section 12 of this Act.

    Section 5. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Upon approval of the application by the board, GOED shall issue a permit entitling the person to submit an affidavit for new frontiers payment as provided by section 8 of this Act. The permit and new frontiers payment is assignable and transferable and may be used as collateral or security pursuant to chapter 57A-9. If the initial permit holder entity reorganizes into a new entity, the new entity shall file with GOED an amended application within sixty days of the reorganization. If either the permit or new frontiers payment, or both, is assigned or transferred to another entity, the entity shall file with GOED an amended application within sixty days.

    Section 6. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Any person holding a new frontiers permit issued by GOED and completing its program shall file an affidavit for new frontiers payment with GOED.

    The affidavit for new frontiers payment shall contain the following information:

            (1)    The program owners' name and contact information;

            (2)    The general description of the program;

            (3)    The date of completion of the program;

            (4)    The final program costs;

            (5)    The amount of South Dakota sales tax and use tax paid for the completion of the program;

            (6)    The location of the program;

            (7)    A list of the contractors and subcontractors who performed work on the program;

            (8)    A copy of any approval notification by a federal authority;

            (9)    A commitment from the program owner to manufacture or process the product resulting from the program in South Dakota;

            (10)    If the new frontiers payment was assigned or transferred, the name and address of the person to whom the new frontiers payment has been assigned or transferred; and

            (11)    Any other information that GOED may require.

    The affidavit for new frontiers payment shall be on a form prescribed by the commissioner. The affidavit for new frontiers payment shall be signed by the program owner. No affidavit for new frontiers payment may include more than one program.

    Section 7. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The affidavit for new frontiers payment as required by section 6 of this Act shall be filed no later than six months after the completion of the program. If the affidavit for new frontiers payment is not timely filed, the person is ineligible for a new frontiers payment. If the person filing the affidavit for new frontiers payment knowingly makes any material false statement or report in the affidavit for new frontiers payment, the person is ineligible for a new frontiers payment.

    No program costs that occur after eight years from the commencement date are eligible to be included in the final program cost determination for a new frontiers payment, unless an extension is granted at the sole discretion of the board. Any extension granted may not extend beyond twelve years from the commencement date.

    Section 8. That chapter 1-16G be amended by adding a NEW SECTION to read:

    After the timely receipt of a completed affidavit for new frontiers payment, within ninety days GOED shall make payment from the reinvestment fund established in § 1-16G-64 to the program owner based upon the amount and terms approved by the board. If GOED requests additional documents or information from the program owner, the ninety-day period begins to run from the date of receipt of the additional documents or information. GOED shall tender the new frontiers payment by electronic funds transfer.

    Section 9. That chapter 1-16G be amended by adding a NEW SECTION to read:

    If a person receives a new frontiers payment under section 8 of this Act for a program, but subsequently locates the manufacture or processing of the product resulting from the program outside of South Dakota, the person shall repay all new frontiers payments to the State of South Dakota. Upon application by the person, the board may in its discretion waive all or part of the repayment obligation.

    The application for repayment waiver shall be on a form prescribed by the commissioner and shall be signed by the person requesting the waiver.

    Section 10. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The limitations on reinvestment payments imposed by § 1-16G-65 also apply to any new frontiers payment approved by the board.

    Section 11. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The name of any person that receives a new frontiers payment or waiver as provided by this Act, and the amount of the new frontiers payment or waiver, is public information and shall be available and open to public inspection as provided in § 1-27-1.

    Section 12. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The board may promulgate rules, pursuant to chapter 1-26, concerning the procedures and forms for applying for and receiving the new frontiers payment, the requirements necessary to qualify for the new frontiers payment, and the criteria to evaluate programs submitting applications.

    Section 13. That § 1-16G-64 be amended to read:


    1-16G-64. There is hereby created the reinvestment payment fund for the sole purpose of making reinvestment payments pursuant to the provisions of §§ 1-16G-56 to 1-16G-68, inclusive, and new frontiers payments pursuant to the provisions of this Act.

    If the Board of Economic Development board approves a reinvestment payment pursuant to the provisions of §§ 1-16G-56 to 1-16G-68, inclusive, the Department of Revenue shall deposit into the fund a portion or all of the sales and use taxes paid by the project owner up to a maximum amount of the reinvestment payment approved by the board.

    If the board approves a new frontiers payment pursuant to the provisions of this Act, the Department of Revenue shall deposit into the fund a portion or all of the sales and use taxes paid by the program owner up to a maximum amount of the new frontiers payment approved by the board.

    The funds in the reinvestment project fund are continuously appropriated to GOED to make reinvestment payments pursuant to §§ 1-16G-56 to 1-16G-68, inclusive, and new frontiers payments pursuant to this Act. If any money deposited in the fund and set aside for a specific reinvestment payment or new frontiers payment is in excess of the final reinvestment or new frontiers payment, as applicable, or the specific project or program becomes ineligible for the reinvestment or new frontiers payment, as applicable, such money shall be deposited into the general fund. Interest earned on money in the fund shall be deposited into the general fund.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\006.wpd
CHAPTER 6

(HB 1060)

South Dakota Board on Geographic Names revised.


        ENTITLED, An Act to revise certain provisions regarding the South Dakota Board on Geographic Names.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-19C be amended by adding a NEW SECTION to read:

    The South Dakota Board on Geographic Names may only act on a name change for a geographic place name that has been identified by state law as being offensive or insulting, except that the board may hold hearings to consider recommending names to the Legislature as offensive or insulting. The board may not act on any other proposed name change. If state law identifies such a name, the board shall follow the procedures under § 1-19C-2.1 to recommend a new or replacement name.

     Signed March 25, 2016
_______________
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CHAPTER 7

(HB 1090)

Audits of insurance pooling arrangements
to be filed with the Department of Legislative Audit.


        ENTITLED, An Act to require certain statements and audits concerning insurance pooling arrangements to be filed with the Department of Legislative Audit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-24 be amended by adding a NEW SECTION to read:

    Each pool arrangement, as defined in § 1-24-11, shall have an annual audit of its financial statements conducted in accordance with generally accepted government auditing standards. A copy of the audited financial statements shall be filed with the Department of Legislative Audit within twelve months of the close of the previous fiscal year for the pool arrangement. The department shall make audited financial statements filed pursuant to this section available to the public on the department's website. The auditor-general may examine all financial records, related to funds provided by the state or its political subdivisions, of any pool arrangement if deemed necessary and in the public interest by the auditor-general.

     Signed February 29, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\008.wpd
CHAPTER 8

(HB 1146)

Agreements with tribes regarding high school equivalency tests
administered on Indian reservations.


        ENTITLED, An Act to authorize the Governor to enter agreements with Indian tribes regarding the high school equivalency tests administered on Indian reservations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The Governor of the State of South Dakota is hereby authorized to enter into an agreement under the provisions of this Act and chapter 1-24 with any federally recognized Indian tribe. The purpose of any agreement entered into pursuant to this Act is to allow the Indian tribes to select the high school equivalency test that is administered at testing sites located within the exterior boundaries of Indian reservations within the state.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Any agreement reached pursuant to section 1 of this Act shall be for a term not to exceed five years. An agreement, however, is renewable upon expiration by the mutual consent of the parties.

     Signed March 16, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\009.wpd
CHAPTER 9

(SB 73)

Open meeting requirements expanded.


        ENTITLED, An Act to clarify certain provisions regarding open meetings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-25-1 be amended to read:

    1-25-1. The official meetings of the state, its political subdivisions, and any public body of the state or its political subdivisions are open to the public unless a specific law is cited by the state, the political subdivision, or the public body to close the official meeting to the public. For the purposes of this section, a political subdivision or a public body of a political subdivision means any association, authority, board, commission, committee, council, task force, school district, county, city, town, township, or other agency of the state, which is created or appointed by statute, ordinance, or resolution and is vested with the authority to exercise any sovereign power derived from state law. For the purposes of this section, an official meeting is any meeting of a quorum of a public body at which official business of that public body is discussed or decided, or public policy is formulated, whether in person or by means of teleconference.

    It is not an official meeting of one political subdivision or public body if its members provide information or attend the official meeting of another political subdivision or public body for which the notice requirements of § 1-25-1.1 have been met.

    Any official meeting may be conducted by teleconference as defined in § 1-25-1.2. A teleconference may be used to conduct a hearing or take final disposition regarding an administrative rule pursuant to § 1-26-4. A member is deemed present if the member answers present to the roll call conducted by teleconference for the purpose of determining a quorum. Each vote at an official meeting held by teleconference shall be taken by roll call.

    If the state, a political subdivision, or a public body conducts an official meeting by teleconference, the state, the political subdivision, or public body shall provide one or more places at which the public may listen to and participate in the teleconference meeting. For any official meeting held by teleconference, which has less than a quorum of the members of the public body participating in the meeting who are present at the location open to the public, arrangements shall be provided for the public to listen to the meeting via telephone or internet. The requirement to provide one or more places for the public to listen to the teleconference does not apply to an executive or closed meeting.

    If a quorum of township supervisors, road district trustees, or trustees for a municipality of the third class meet solely for purposes of implementing previously publicly-adopted policy, carrying out ministerial functions of that township, district, or municipality, or undertaking a factual investigation of conditions related to public safety, the meeting is not subject to the provisions of this chapter.

    A violation of this section is a Class 2 misdemeanor.

    Section 2. That § 1-25-1.2 be amended to read:

    1-25-1.2. For the purposes of this chapter, a teleconference is information exchanged by any

audio or, video, or electronic medium, including the internet.

     Signed March 9, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\010.wpd
CHAPTER 10

(HB 1066)

Public notice for a meeting of a public body.


        ENTITLED, An Act to revise certain provisions regarding the public notice for a meeting of a public body.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-25-1.1 be amended to read:

    1-25-1.1. All public bodies, except the state and each state board, commission, or department as provided in section 2 of this Act, shall provide public notice, with proposed agenda, that is visible, readable, and accessible for at least an entire, continuous twenty-four hours immediately preceding any meeting, by posting a copy of the notice, visible to the public, at the principal office of the public body holding the meeting. The proposed agenda shall include the date, time, and location of the meeting. The notice shall also be posted on the public body's website upon dissemination of the notice, if such a website exists. For any special or rescheduled meetings meeting, the information in the notice shall be delivered in person, by mail, by email, or by telephone, to members of the local news media who have requested notice. For any special or rescheduled meetings, all public bodies meeting, each public body shall also comply with the public notice provisions of this section for a regular meetings meeting to the extent that circumstances permit. A violation of this section is a Class 2 misdemeanor.

    Section 2. That chapter 1-25 be amended by adding a NEW SECTION to read:

    The state and each state board, commission, or department shall provide public notice, with proposed agenda, that is visible, readable, and accessible to the public for at least two continuous days, as that time period is computed pursuant to § 15-6-6(a), immediately preceding any meeting, by posting a copy of the notice at the principal office of the public body holding the meeting. The proposed agenda shall include the date, time, and location of the meeting. The notice shall also be posted on the public body's website upon dissemination of the notice, if such a website exists. For any special or rescheduled meeting, the information in the notice shall be delivered in person, by mail, by email, or by telephone, to members of the local news media who have requested notice. For any special or rescheduled meeting, each public body shall also comply with the public notice provisions of this section for a regular meeting to the extent that circumstances permit. A violation of this section is a Class 2 misdemeanor.

     Signed February 18, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\011.wpd
CHAPTER 11

(SB 90)

The public may record public meetings.


        ENTITLED, An Act to ensure that members of the public are able to access and record public meetings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-25 be amended by adding a NEW SECTION to read:

    No state, political subdivision, or public body may prevent a person from recording, through audio or video technology, a public meeting that is open to the public as long as the recording is reasonable, obvious, and not disruptive.

     Signed March 15, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\012.wpd
CHAPTER 12

(SB 104)

Rules to be reviewed before filing with the Secretary of State.


        ENTITLED, An Act to set the time period for when an agency may promulgate rules.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1.  That § 1-26-4.3 be amended to read:

    1-26-4.3. No permanent rule may be adopted if more than seventy-five days have passed from the date the public hearing on the rule commenced. The agency shall appear before filed with the secretary of state without the review of the rule by the Interim Rules Review Committee and present the proposed permanent rule to the committee within the seventy-five-day period before the rule is filed with the secretary of state. If the Interim Rules Review Committee fails to meet on the proposed permanent rule during the seventy-five-day period, and if the agency has complied with subdivisions 1-26-6(1) to 1-26-6(4), inclusive, the agency may complete the rules adoption process by complying with subdivision 1-26-6(5) notwithstanding subdivision 1-26-6(6). No permanent rule may be filed with the secretary of state if more than sixty days have passed from the date the Interim Rules Review Committee adopts a motion that the rule-making process is complete. No emergency rule may be adopted if more than thirty days have passed from the date the notice of intent to adopt an emergency rule was published in the manner prescribed in § 1-26-4.1.

     Signed March 16, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\013.wpd
CHAPTER 13

(HB 1117)

Languages used at public meeting regulated.


        ENTITLED, An Act to repeal certain provisions concerning the authorization for the use of other languages in public records or public meetings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-27-22 be amended to read:

    1-27-22. The provisions of §§ 1-27-20 to 1-27-26, inclusive, do not apply:

            (1)    To instruction in foreign language courses;

            (2)    To instruction designed to aid students with limited English proficiency in a timely transition and integration into the general education system;

            (3)    To the conduct of international commerce, tourism, and sporting events;

            (4)    When deemed to interfere with needs of the justice system;

            (5)    When the public safety, health, or emergency services require the use of other languages. However, any such authorization for the use of a language other than the common language in printing informational materials or publications for general distribution must be approved in an open public meeting pursuant to chapter 1-25 by the governing board or authority of the relevant state or municipal entity and the decision shall be recorded in publicly available minutes; and

            (6)    When expert testimony, witnesses, or speakers require a language other than the common language. However, for purposes of deliberation, decision making, or record keeping, the official version of such testimony or commentary shall be the officially translated English language version.

    Section 2. That § 1-27-23 be repealed.

    Section 3. That § 1-27-26 be repealed.

     Signed February 29, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\014.wpd
CHAPTER 14

(HB 1032)

Guaranteed energy savings contracts revised.


        ENTITLED, An Act to revise certain provisions regarding guaranteed energy savings contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-33B-1 be amended to read:

    1-33B-1. Terms used in this chapter mean:

            (1)    "Governmental unit," state government or any political subdivision of the state "Cost-effective" or "cost-effectiveness," that the sum of guaranteed cost savings are equal to or exceed any financing repayment obligation each year of a finance term;

            (2)    "Guaranteed energy savings contract," a contract for measures which provides that either energy or operational cost savings, or both, are guaranteed to the extent necessary to make payments for the measures recommended in the contract "Cost-saving measure," a cost-effective improvement, repair, or alteration of equipment fixtures, or furnishings added to or used in a facility that is designed to reduce energy consumption, water consumption, or operation and maintenance costs. The term also includes vehicle acquisitions, changes to utility rate or tariff schedules, or fuel source changes that result in costs savings;

            (3)    "Qualified provider," a person, business, or state agency experienced in the design, implementation, or installation of energy conservation measures who can demonstrate the financial capabilities of completing the obligations stipulated in a guaranteed energy savings contract "Energy performance contract," a contract between a governmental unit and a qualified energy service provider for evaluation, recommendation, and implementation of one or more cost-saving measures, evaluation of cost-effectiveness, and guaranteed cost savings;

            (4)    "Finance term," the length of time for repayment of funds borrowed for an energy performance contract;

            (5)    "Governmental unit," state government or any political subdivision of the state;

            (6)    "Guarantee period," the period of time from the effective date of a contract until guaranteed cost savings are achieved;

            (7)    "Operation and maintenance cost savings," a measurable decrease in operation and maintenance costs as a direct result of cost-saving measures, calculated using baseline operation and maintenance costs. The term does not include the shifting of personnel costs or similar short-term cost savings that cannot be definitively measured;

            (8)    "Qualified energy service provider" or "provider," a person, business, or state agency with experience in the design, implementation, or installation of cost saving measures, who can demonstrate the financial capabilities of completing the obligations stipulated to in an energy performance contract;

            (9)    "Utility cost savings," expenses for utilities that are eliminated or avoided on a long-term basis as a result of equipment installed or modified, or services performed by a qualified energy service provider. The term includes expenses for natural gas, propane or similar fuels, electricity, water, waste water, and waste disposal.

    Section 2. That chapter 1-33B be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, guaranteed cost savings, means a guaranteed annual measurable monetary reduction in utility, operating, and maintenance costs for each year of a guarantee period as a result of cost-saving measures. Guaranteed cost savings for utility savings shall be calculated using the mutually agreed upon baseline utility rates in use at the time of an investment-grade energy audit. Guaranteed cost savings for operation and maintenance cost savings shall be calculated using mutually agreed upon baseline operation and maintenance costs at the time

of an investment-grade energy audit.

    Section 3. That chapter 1-33B be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, investment-grade energy audit, means a study of energy or water usage of a public building, including a detailed description of the improvements recommended for the project, the estimated cost of the improvements, and the utility, operation, and maintenance cost savings projected to result from the recommended improvements. The study shall contain all of the information required pursuant to § 1-33B-3.

    Section 4. That chapter 1-33B be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, measurement and verification, means the methodology, measurements, inspections, and mathematical calculations to determine utility consumption before and after an energy performance contract is implemented. The measurement and verification report may be for an individual cost-saving measure or an entire project. The governmental unit shall determine which measurement and verification method to utilize.

    Section 5. That § 1-33B-3 be amended to read:

    1-33B-3. For the purposes of this chapter, the term, request for proposals proposal, means a procurement announcement through a public notice, from a governmental unit which will administer administers the program, detailing the work, service, or supplies needed for an energy conservation measure. The request for proposal shall include the following:

            (1)    The name and address of the governmental unit;

            (2)    The name, address, title, and phone number of contact person;

            (3)    The response due date and time deadline;

            (4)    The location and scope of the project;

            (5)    The project completion deadline;

            (6)    The evaluation criteria for awarding a contract; and

            (7)    Any other stipulations and clarifications the governmental unit may require.

    Section 6. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A governmental unit may solicit submissions of qualifications to enter into an energy performance contract by providing public notice to qualified energy service providers. The notice shall invite qualified energy service providers to submit qualifications and proposals for investment grade energy audits. Governmental units shall utilize chapter 36-18A to determine the minimum educational qualifications of a qualified energy service provider. The governmental unit shall comply with procurement procedures for professional services provided under §§ 5-18D-17 to 5-18D-22, inclusive.

    Section 7. That chapter 1-33B be amended by adding a NEW SECTION to read:

    The governmental unit shall evaluate the qualifications and proposals of qualified energy service providers according to the quality of the provider's technical approach and the provider's experience with:

            (1)    Design, engineering, and installation of cost-saving measures;

            (2)    Overall project management;

            (3)    Projects of similar size and scope;

            (4)    Post installation measurement and verification of guaranteed cost savings;

            (5)    Project commissioning;

            (6)    Training of building operators; and

            (7)    Conversions to a different fuel source.

    Section 8. That chapter 1-33B be amended by adding a NEW SECTION to read:

    The governmental unit may negotiate a contract with the most qualified energy service provider at a price that the governmental unit determines fair and reasonable, taking into account the scope of the services rendered. The provider selected is not required to have submitted the proposal with the lowest cost. If the governmental unit is unable to negotiate a satisfactory contract with the provider, negotiations with that provider shall be formally terminated, and the governmental unit may select the next provider until an agreement is reached or the process is terminated. The governmental unit may choose to reject all proposals.

    Section 9. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A qualified energy service provider, selected by a governmental unit pursuant to § 1-33B-3 and sections 6 to 8, inclusive, of this Act, shall prepare an investment-grade energy audit. The audit shall be incorporated into the energy performance contract.

    Section 10. That chapter 1-33B be amended by adding a NEW SECTION to read:

    An investment-grade energy audit shall include estimates of all costs and guaranteed cost savings for the proposed energy performance contract, including cost of design, engineering, equipment, materials, installation, maintenance, repairs, monitoring and verification, commissioning, training, and debt service.

    Section 11. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A qualified energy service provider and the governmental unit shall agree on the cost of an investment-grade energy audit before it is conducted. If an investment-grade energy audit is completed, and the governmental unit does not execute an energy performance contract, the governmental unit shall pay the full costs of the investment-grade energy audit. If the governmental unit executes the energy performance contract, the cost of the investment-grade energy audit may be included in the costs of an energy performance contract or, at the discretion of the governmental unit, paid for by the governmental unit.

    Section 12. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A governmental unit may pay for an energy performance contract with funds designated for operating costs, capital expenditures, utility costs, lease payments, installment payment contracts, lease purchase agreements, or bonds issued pursuant to law.

    Section 13. That chapter 1-33B be amended by adding a NEW SECTION to read:

    All permissible sources, including utility incentives, grants, operating costs, or capital budgets, may be used to reduce the amount of financing.

    An energy performance contract may extend beyond the current fiscal year, but may not exceed fifteen years, the cost-weighted average useful life of the cost-saving measure, or the term of financing, whichever is shortest.

    During the guarantee period, a qualified energy service provider shall measure and verify reductions in energy consumption and costs attributable to cost-saving measures implemented pursuant to an energy performance contract and prepare and provide a measurement and verification report to the governmental unit at least once a year.

    Section 14. That chapter 1-33B be amended by adding a NEW SECTION to read:

    Costs for measurement and verification shall be included in an energy performance contract and paid by the governmental unit during an initial monitoring period of no less than three years.

    The energy performance contract shall provide that, if guaranteed cost savings are not achieved during any year in the initial monitoring period, the qualified energy service provider shall pay the costs for measurement and verification reports until guaranteed cost savings are achieved for all consecutive years equal to the initial monitoring period.

    Section 15. That chapter 1-33B be amended by adding a NEW SECTION to read:

    Except as provided in this section, the qualified energy service provider shall pay the governmental unit the amount of any verified annual guaranteed cost savings shortfall each year until guaranteed cost savings are achieved for each year in an initial monitoring period as established in section 14 of this Act. The amount of cost savings achieved during a year shall be determined using the baseline rates used in guaranteed cost savings.

    In the case of a shortfall, the governmental unit and qualified energy service provider may negotiate the terms of measurement and verification reports and the shortfall payment for the remainder of the energy performance contract finance term.

    If there is an excess in cost savings in any year of the guarantee period, the guaranteed cost savings remain with the governmental unit. Guaranteed cost savings may not be used to cover potential shortfalls in subsequent years or actual guaranteed cost savings shortages in previous years of a guarantee period.

    Section 16. That § 1-33B-4 be repealed.

    Section 17. That § 1-33B-6 be amended to read:

    1-33B-6. For state owned buildings, all improvements proposed under an energy efficiency performance contract shall, prior to submitting a request for proposals, the governmental unit shall receive prior permission from the Bureau of Administration and conform to all state statutes laws and rules as they apply to renovating or retrofitting state-owned buildings before submitting a request for proposals under § 1-33B-3 and sections 6 to 8, inclusive, of this Act. The Bureau of Administration shall review the proposal and notify the qualified provider governmental unit of its findings within thirty days.

    Section 18. That § 1-33B-7 be repealed.

     Signed February 8, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\015.wpd
CHAPTER 15

(SB 20)

Behavioral Health Division created.


        ENTITLED, An Act to revise certain provisions related to behavioral health.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-36-25 be amended to read:

    1-36-25. The secretary of the Department of Social Services may promulgate rules, pursuant to chapter 1-26, for the Mental Health Division of Behavioral Health pertaining to any individual, organization, or corporation which receives directly or indirectly financial assistance from the state if such assistance is under the department's supervision. The secretary's promulgation of rules shall be in accordance with chapter 1-26 governing may govern:

            (1)    Management and administration, including fiscal control, program planning, implementation, and evaluation;

            (2)    Physical facilities, except matters covered by local fire and building codes or regulations;

            (3)    Service administration, including client rights, confidentiality, treatment planning, and statistical reporting;

            (4)    Service components, including outpatient, emergency, liaison, psychiatric rehabilitation, residential, consultation and education, and case management; and

            (5)    Staff qualifications.

    Section 2. That § 1-36-26 be repealed.

    Section 3. That § 1-36-31 be repealed.

    Section 4. That § 1-36-32 be repealed.

    Section 5. That § 1-36-33 be repealed.

    Section 6. That § 1-36-34 be repealed.

    Section 7. That § 27A-1-13 be amended to read:

    27A-1-13. A bordering state or governmental entity of a bordering state may contract with any appropriate treatment facility in South Dakota for the treatment of mental illness or chemical dependency substance use disorder for residents of the bordering state. However, any such the contract shall conform to the requirements of §§ 27A-1-12 to 27A-1-17, inclusive.

    Section 8. That § 27A-1-16 be amended to read:

    27A-1-16. Any treatment facility in South Dakota may enter negotiations with appropriate personnel of a bordering state to develop a contract that conforms to the requirements of §§ 27A-1-12 to 27A-1-17, inclusive. A contract with a bordering state shall enable the temporary placement in South Dakota by a bordering state of a person who is on an emergency hold or who has been

involuntarily committed as mentally ill or chemically dependent due to mental illness or a substance use disorder as determined by the bordering state. Any person committed by a bordering state or on emergency hold from a bordering state and who is placed in a South Dakota facility continues to be in the legal custody of the bordering state and shall be returned to the bordering state prior to before release from emergency hold or involuntary commitment. The bordering state's laws governing commitment criteria, length of commitment, hearings, reexaminations, and extension of commitment continue to apply to these bordering state residents. The State of South Dakota is not responsible for treatment costs, legal proceeding costs, or transportation costs. In all other aspects, a resident of a bordering state placed in a South Dakota facility is subject to the laws of South Dakota. A contract under §§ 27A-1-12 to 27A-1-17, inclusive, with a bordering state or bordering state governmental entity shall specify that responsibility for payment for the cost of care and transportation for persons under §§ 27A-1-12 to 27A-1-17, inclusive, remains with the contracting entity of the bordering state of which that person is a resident.

    Section 9. That § 27A-15-1.1 be amended to read:

    27A-15-1.1. For the purposes of this chapter, an individual with a serious emotional disturbance is an individual who:

            (1)    Is under eighteen years of age;

            (2)    Exhibits behavior resulting in functional impairment which substantially interferes with, or limits the individual's role or functioning in the community, school, family, or peer group;

            (3)    Has a mental disorder diagnosed under the Diagnostic and Statistical Manual of Mental Disorders, fourth fifth edition revised, 1994, 2013;

            (4)    Has demonstrated a need for one or more special care services, in addition to mental health services; and

            (5)    Has problems with a demonstrated or expected longevity of at least one year or has an impairment of short duration and high severity.

    For purposes of this section, intellectual disability, epilepsy, other developmental disability, alcohol or substance abuse, brief period of intoxication, or criminal or delinquent behavior do not, alone, constitute a serious emotional disturbance.

    Section 10. That § 34-20A-2 be amended to read:

    34-20A-2. Terms as used in this chapter mean:

            (1)    "Accredited prevention or treatment facility," a private or public agency meeting the standards prescribed in § 34-20A-27 and listed under § 34-20A-47, or a private or public agency or facility surveyed and accredited by the Joint Commission; an Indian Health Service's quality assurance review under the Indian Health Service Manual, Professional Standards-Alcohol/Substance Abuse; or the Commission on Accreditation of Rehabilitation Facilities; or the Council on Accreditation; under the drug and alcohol treatment standards incorporated and adopted by the division in rules promulgated pursuant to chapter 1-26, if proof of such the accreditation, with accompanying recommendations, progress reports and related correspondence are submitted to the Division of Alcohol and Drug Abuse Behavioral Health in a timely manner;

            (2)    "Advisory council" and "council," the Drug and Alcohol Abuse Advisory Council created by § 34-20A-3.2 "Addiction counselor," a person licensed or certified as an addiction counselor by the South Dakota Board of Addiction and Prevention Professionals;

            (3)    "Alcoholic," a person who habitually lacks self-control as to the use of alcoholic beverages, or uses alcoholic beverages to the extent that his the person's health is substantially impaired or endangered or his the person's social or economic function is substantially disrupted;

            (4)    "Chemical dependency counselor," a level II or III counselor certified by the South Dakota Certification Board for Alcohol and Drug Professionals;

            (5)    "Department," the State Department of Social Services;

            (6)(5)    "Designated prevention or treatment facility," an accredited agency operating under the direction and control of the state or providing services under this chapter through a contract with the division or treatment facilities operated by the federal government which may be designated by the division without accreditation by the state;

            (7)(6)    "Division," the Division of Alcohol and Drug Abuse Behavioral Health within the department;

            (8)(7)    "Drug abuser," a person who habitually lacks self-control as to the use of controlled drugs or substances as defined in § 34-20B-3 to the extent that the person's health is substantially impaired or endangered or that the person's social or economic function is substantially disrupted;

            (9)(8)    "Incapacitated by alcohol or other drugs," that a person, as a result of the use of alcohol or other drugs, is unconscious or his the person's judgment is otherwise so impaired that he the person is incapable of realizing and making a rational decision with respect to his the person's need for treatment;

            (10)(9)    "Incompetent person," a person who has been adjudged incompetent by the circuit court;

            (11)(10)    "Intoxicated person," a person who demonstrates diminished mental or physical capacity as a result of the use of alcohol or other drugs;

            (12)(11)    "Prevention," purposeful activities designed to promote personal growth of an individual a person and strengthen the aspects of the community environment which are supportive to him the person in order to preclude, forestall prevent, or impede the development of alcohol or other drug misuse and abuse;

            (13)(12)    "Secretary," the secretary of the Department of Social Services;

            (14)(13)    "Treatment," the broad range of emergency, outpatient, intermediate, and inpatient services and care, including diagnostic evaluation, which may be extended to those persons a person experiencing problems as a result of the use of alcohol or other drugs.

    Section 11. That § 34-20A-3.1 be repealed.

    Section 12. That § 34-20A-27 be amended to read:

    34-20A-27. The Division of Alcohol and Drug Abuse division shall establish reasonable standards and requirements for accredited prevention or treatment facilities. The division may fix the fees to be charged by the division for the required inspections. The division may adopt rules, pursuant to chapter 1-26, in regard to the following standards and requirements:

            (1)    Management and administration, including fiscal control, program planning, and

evaluation;

            (2)    Physical facilities and quality control;

            (3)    Services administration, including client rights, confidentiality, treatment planning, and statistical reporting;

            (4)    Service components including: inpatient/residential, outpatient treatment, social detoxification, transitional care, custodial care, counseling and support services, prevention services;

            (5)    Staff qualifications; and

            (6)    Such other standards as are necessary for the safety and health of clients and patients.

    Section 13. That § 34-20A-34 be amended to read:

    34-20A-34. The Division of Alcohol and Drug Abuse division may acquire, hold, or dispose of real property or any interest therein in real property, and construct, lease, or otherwise provide facilities for the prevention of alcohol and drug abuse and facilities for the treatment of those persons suffering from alcohol and drug abuse and for intoxicated persons.

    Section 14. That § 34-20A-44 be amended to read:

    34-20A-44. The Division of Alcohol and Drug Abuse division shall inspect accredited prevention or treatment facilities to insure compliance with this chapter. For purposes of inspection, the division shall have access to the facility and its records at reasonable times and in a reasonable manner. This section does not apply to facilities accredited pursuant to accreditation by the Joint Commission, the Commission on Accreditation of Rehabilitation Facilities, an Indian Health Service's quality assurance review under the Indian Health Service Manual, Professional Standards-Alcohol/Substance Abuse, or the Council on Accreditation.

    Section 15. That § 34-20A-44.1 be amended to read:

    34-20A-44.1. If a public or private agency or facility is considered to be an accredited prevention or treatment facility by reason of compliance with accreditation by the Joint Commission, the Commission on Accreditation of Rehabilitation Facilities, an Indian Health Service's quality assurance review under the Indian Health Service Manual, Professional Standards-Alcohol/Substance Abuse, or the Council on Accreditation, as described in § 34-20A-2, the Division of Alcohol and Drug Abuse division retains the right of access to all facility premises and relevant records to monitor compliance or investigate complaints brought against the facility.

    Section 16. That § 34-20A-51 be amended to read:

    34-20A-51. Subject to rules adopted by the Division of Alcohol and Drug Abuse division, the administrator in charge of an accredited treatment facility may determine who shall be admitted for treatment. If a person is refused admission to the facility, the administrator, subject to rules adopted by the division, shall refer the person to another treatment facility for treatment if possible and appropriate.

    Section 17. That § 34-20A-66.1 be amended to read:

    34-20A-66.1. Payment for treatment under emergency commitment, or under protective custody pursuant to § 34-20A-55 if emergency commitment is not required, may be assessed to the individual, to a legally responsible relative or guardian, to the county of residence if indigent, or billed to the Division of Alcohol and Drug Abuse division through contract with an approved

treatment facility. Any payment for emergency commitment to the Human Services Center is subject to the requirements of chapter 27A-13.

    Section 18. That § 34-20A-72 be amended to read:

    34-20A-72. A petition filed under § 34-20A-70 shall be accompanied by a certificate of a licensed physician or a certified chemical dependency an addiction counselor either of whom has examined the person within two days before submission of the petition, unless the person whose commitment is sought has refused to submit to a medical examination or counselor assessment in which case the fact of refusal shall be alleged in the petition. The certificate shall set forth the physician's or the counselor's findings in support of the allegations of the petition. A physician or chemical dependency addiction counselor employed by the admitting facility is not eligible to provide certification.

    Section 19. That § 34-20A-75 be amended to read:

    34-20A-75. At the hearing the court shall hear all relevant testimony, including, if possible, the testimony of at least one licensed physician and one certified chemical dependency addiction counselor who have examined the person whose commitment is sought.

    Section 20. That § 34-20A-76 be amended to read:

    34-20A-76. If the person has refused to be examined by a licensed physician or a certified chemical dependency an addiction counselor, the person shall be given an opportunity to be examined by a court-appointed licensed physician or certified chemical dependency addiction counselor. If the person refuses and there is sufficient evidence to believe that the allegations of the petition are true, or if the court believes that more evidence is necessary, the court may order a temporary commitment and transportation by a law enforcement officer to an approved treatment facility for a period of not more than five days for purposes of a diagnostic examination.

    Section 21. That § 34-20A-76.1 be amended to read:

    34-20A-76.1. A licensed physician or certified chemical dependency addiction counselor appointed by the court to examine and assess a person for the purposes of involuntary commitment shall be paid by the county where the hearing and commitment proceedings take place. The physician or addiction counselor shall be compensated for such services in an amount fixed by the circuit judge. The county shall be reimbursed for such expense by the person if the person is financially able to do so. If the person is not financially able to pay such expense, the cost of physician or addiction counselor examination shall be paid to the county by the person legally bound for the support of such person if financially able to do so.

    Section 22. That § 34-20A-86 be amended to read:

    34-20A-86. The person whose commitment or recommitment is sought shall be informed of his the person's right to be examined by a licensed physician and a certified chemical dependency an addiction counselor of his the person's choice. If the person is unable to obtain a licensed physician or a certified chemical dependency an addiction counselor and requests examination by a physician or an addiction counselor, the court shall employ a licensed physician or a certified chemical dependency an addiction counselor.

    Section 23. That § 32-23-2.1 be amended to read:

    32-23-2.1. Any person convicted of a first offense pursuant to § 32-23-1 with a 0.17 percent or more by weight of alcohol in the person's blood shall, in addition to the penalties provided in § 32-23-2, be required to undergo a court-ordered evaluation by a chemical dependency counselor as defined in § 34-20A-2 an addiction counselor licensed or certified by the Board of Addiction and

Prevention Professionals pursuant to § 36-34-13.1 or a licensed or certified health care professional with specialized training in chemical dependency evaluation to determine if the defendant is chemically dependent. The cost of such evaluation shall be paid by the defendant. The recommendations of the evaluation shall be provided to the referring judge.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\016.wpd
CHAPTER 16

(SB 162)

The State Board of Internal Control.


        ENTITLED, An Act to create the State Board of Internal Control and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Board," the State Board of Internal Control;

            (2)    "Code of conduct," a set of ethical principles and guidelines that constitutes appropriate behavior within an organization;

            (3)    "Internal control," a process that integrates the plans, activities, policies, attitudes, procedures, systems, resources, and efforts of an organization and that is designed to provide reasonable assurance that the organization will achieve its objectives and missions and to detect and prevent financial malfeasance;

            (3)    "Pass-through grant," a grant awarded by a federal entity to the state entity and transferred or passed to a sub-recipient by the state;

            (4)    "State agency," the Legislature, any constitutional officer, the Unified Judicial System, and any department, division, bureau, board, commission, committee, authority, or agency of the State of South Dakota;

            (5)    "Sub-recipient," an entity that expends a pass-through grant.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    There is hereby created a State Board of Internal Control that consists of seven members. Three members shall represent state agencies under control of the Governor and shall be appointed by the Governor. Each member appointed by the Governor shall serve a three-year term. However, the initial appointments shall be for staggered terms. The remaining members shall be the commissioner of the Bureau of Finance and Management, the state auditor, a Board of Regents administrator's designee, and a member appointed by the Chief Justice of the Supreme Court. Any four of the seven members constitutes a quorum. The commissioner of the Bureau of Finance and Management shall be chair of the board.

    Section 3. That the code be amended by adding a NEW SECTION to read:


    The board may promulgate rules, pursuant to chapter 1-26, to implement a system of internal control in accordance with internal control standards.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    The board shall meet monthly for the first twelve months, and shall meet at least quarterly after the first year. A record of the proceedings of the board shall be kept pursuant to § 1-25-3.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The Bureau of Finance and Management shall provide administrative support to the board. If necessary, the board shall seek the advice of the auditor-general.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    The board shall establish and maintain:

            (1)    Guidelines for an effective system of internal control to be implemented by state agencies that is in accordance with internal control standards;

            (2)    A code of conduct for use by state agencies excluding the Unified Judicial System; and

            (3)    A conflict of interest policy for use by state agencies excluding the Unified Judicial System.

The Unified Judicial System may implement the code of conduct and conflict of interest policy in accordance with the code of judicial conduct and employee policies utilized within the Unified Judicial System.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    The board shall create an annual work plan and report which shall be presented to the Governor and the Government Operations and Audit Committee.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    Each state agency shall designate an internal control officer. The board shall make available to each internal control officer guidelines and standards that the state agency shall implement and comply. The board may take other actions as necessary to carry out the purpose and intent of this Act.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    After the review of an audit in accordance with § 4-11-2.1, the auditor-general shall submit to the board a copy of any audit report correspondence sent to a state agency identifying audit findings pertaining to federal award programs administered by the state agency.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    The grant agreement for each grant, pass-through grant, or any other award granted by a state agency to a nonstate agency after July 1, 2016, shall be displayed on the website created pursuant to § 1-27-45.

    Each grant agreement shall include an attestation by the award recipient or sub-recipient that:

            (1)    A conflict of interest policy is enforced within the recipient's or sub-recipient's

organization;

            (2)    The Internal Revenue Service Form 990 has been filed, if applicable, in compliance with federal law, and is displayed immediately after filing on the recipient's or sub-recipient's website;

            (3)    An effective internal control system is employed by the recipient's or sub-recipient's organization; and

            (4)    If applicable, the recipient or sub-recipient is in compliance with the federal Single Audit Act, in compliance with § 4-11-2.1, and audits are displayed on the recipient's or sub-recipient's website.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    A state employee who suspects the existence of a conflict of interest, fraud, or theft shall report the matter immediately to any, of the following:

            (1)    The employee's immediate supervisor;

            (2)    The attorney general's office; or

            (3)    The Department of Legislative Audit.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    Pursuant to § 3-6D-22, an employee may file a grievance with the Civil Service Commission if the employee believes that there has been retaliation because of reporting a violation of state law.

    Section 13. Whereas, this Act is necessary for the immediate preservation of the public peace, health, or safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 16, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\017.wpd
CHAPTER 17

(HB 1014)

State Historical Society surplus real estate to be sold.


        ENTITLED, An Act to authorize the sale of certain surplus real estate and to provide for the deposit of the proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. Upon the request of the State Historical Society referenced in § 1-18-3 and the Governor, the commissioner of school and public lands shall sell all or any portion of the following real estate under the control of the State Historical Society located in Sully County, South Dakota, and any related personal property and improvements:

    The Northwest Quarter of the Northwest Quarter and the East Half of the Northwest Quarter and the Northeast Quarter of the Southwest Quarter of Section 35, Township 116 North of Range 80

West of the 5th Principal Meridian, also described in the Warranty Deed, Mrs. Agnes B. Whitlock, Grantor to the State of South Dakota for the benefit of the State Historical Society consisting of 97.5 acres more or less.

    Section 2. Real property and related personal property and improvements on the property which are generally considered a part of the property described in section 1 of this Act, but not specifically included in the legal descriptions set out in section 1 of this Act, may be sold as though they were specifically described in section 1 of this Act.

    Section 3. The property described in this Act shall be appraised by the board of appraisal established by § 5-9-3 and sold according to the procedure established in §§ 5-9-6 to 5-9-9, inclusive, 5-9-11 to 5-9-15, inclusive, 5-9-28, and 5-9-36, subject to all applicable statutory and constitutional reservations.

    Section 4. The net proceeds from the sale of the property described in this Act shall be deposited into the permanent fund established by S.D. Const., Art. VIII, § 7, for the use and benefit of the State Historical Society.

    Section 5. Notwithstanding the provisions of this Act or any other law to the contrary, the State Historical Society and Governor may direct the commissioner of school and public lands to sell any property described in this Act to a political subdivision within which the property is located. The sale may be made without first offering the property for sale to the public. The sale price shall be at least the appraised value as determined by the board of appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed February 25, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\018.wpd
CHAPTER 18

(HB 1024)

Appropriation to repair state owned dams.


        ENTITLED, An Act to make an appropriation for the maintenance and repair of state owned dams and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of two hundred fifty thousand dollars ($250,000), or so much thereof as may be necessary, to the Office of School and Public Lands for the purposes of maintenance and repair on state owned dams.

    Section 2. The commissioner of school and public lands shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 7, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\019.wpd
CHAPTER 19

(HB 1047)

Extraordinary litigation expense appropriation.


        ENTITLED, An Act to make an appropriation for the payment of extraordinary litigation expenses and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of one million nine hundred seventy-four thousand five hundred two dollars ($1,974,502), or so much thereof as may be necessary, to the extraordinary litigation fund for payment of eligible expenses.

    Section 2. The commissioner of the Bureau of Administration shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 7, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\020.wpd
CHAPTER 20

(HB 1207)

Sale of surplus real estate at the Human Services Center.


        ENTITLED, An Act to authorize the sale of certain surplus real estate at the Human Services Center and to provide for the deposit of the proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. Upon the request of the Governor, the commissioner of school and public lands shall sell all or any portion of the following real estate located in Yankton County, South Dakota, and any related personal property and improvements located on the property:

            (1)    Certain property under the control of the Department of Social Services described generally as Tract 4 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (2)    Certain property under the control of the Department of Social Services described generally as Lot 3 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (3)    Certain property under the control of the Department of Social Services described

generally as Lot 4 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (4)    Certain property under the control of the Department of Social Services described generally as Lot 5 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (5)    Certain property under the control of the Department of Social Services described generally as Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (6)    Certain property under the control of the Department of Social Services described generally as Lot 6 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (7)    Certain property under the control of the Department of Social Services described generally as Lot A of Lot 4 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (8)    Certain property under the control of the Department of Social Services described generally as Lot A of Lot 5 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (9)    Certain property under the control of the Department of Social Services described generally as Tract 1 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (10)    Certain property under the control of the Department of Social Services described generally as Burbank Building Tract 1 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (11)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 4 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (12)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 3 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (13)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 2 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.; and

            (14)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 1 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.

    This real estate consists of a total of 51.93 acres more or less.

    Section 2. Real estate and related personal property and improvements on the property which are generally considered a part of the tracts described in section 1 of this Act, but not specifically included in the legal descriptions set out in section 1 of this Act, may be sold as provided in this Act as though they were specifically described in section 1 of this Act.

    Section 3. The real estate and other property described in section 1 of this Act shall be appraised by the Board of Appraisal established by § 5-9-3 and may be sold in any manner authorized by law,

subject to all applicable statutory and constitutional reservations.

    Section 4. The proceeds from the sale of the real estate and other property described in section 1 of this Act under the control of the Department of Social Services shall be deposited into the permanent fund established by S.D. Const., Art. VIII, § 7, for the use and benefit of the Human Services Center.

    Section 5. Notwithstanding the provisions of this Act or any other law to the contrary, the Governor may direct the commissioner of school and public lands to sell any real estate and related personal property described in section 1 of this Act to a political subdivision located within ten miles of the real estate and related personal property. The Governor may direct the commissioner of school and public lands to sell any real estate and related personal property described in subdivisions (10) to (14), inclusive, of section 1 of this Act, to the Yankton County Historical Society, Inc. The sale may be made without first offering the real estate and related personal property for sale to the public. The sale price shall be at least the appraised value as determined by the Board of Appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed February 29, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\021.wpd
CHAPTER 21

(HB 1208)

Sale of surplus real estate
at the South Dakota Developmental Center.


        ENTITLED, An Act to provide for the sale of certain surplus real estate at the South Dakota Developmental Center and to provide for the deposit of the proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. The provisions of any law to the contrary, upon the request of the Governor, the commissioner of school and public lands shall sell all or any portion of the following real estate and any related personal property and improvements located on the property:

    Certain property under the control of the Department of Human Services described generally as Lots 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20 and 21 of SDDC Subdivision in the East Half of Section 4, Township 116 North, Range 64 West of the 5th P.M. and the West Half of Section 3, Township 116 North, Range 64 West of the 5th P.M., Spink County, South Dakota, consisting of a total of 132.44 acres, more or less.

    Section 2. Real estate and related personal property and improvements on the property which are generally considered a part of the tracts described in section 1 of this Act but not specifically included in the legal descriptions set out in section 1 of this Act may be sold as provided in this Act as though they were specifically described in section 1 of this Act.

    Section 3. The real estate and other property described in section 1 of this Act shall be appraised by the Board of Appraisal established by § 5-9-3 and may be sold in any manner authorized by law, subject to all applicable constitutional reservations.

    Section 4. The proceeds from the sale of the real estate and other property described in section 1 of this Act as Lots 2, 3, 7, 9, 10, 11, 12, and 13, under the control of the Department of Human Services, less any expense associated with the sale including advertising, appraisal fees, surveying

costs, and demolition expenses, shall be deposited into the general fund.

    Section 5. The proceeds from the sale of the real estate and other property described in section 1 of this Act as Lots 4, 5, 6, 14, 15, 16, 18, 19, 20, and 21, under the control of the Department of Human Services shall be deposited into the permanent fund established by S.D. Const., Art. VIII, § 7, for the use and benefit of the South Dakota Developmental Center.

    Section 6. Notwithstanding the provisions of this Act or any other law to the contrary, the Governor may direct the commissioner of school and public lands to sell any real estate and related personal property and improvements described in section 1 of this Act to a political subdivision located within ten miles of the real estate and related personal property and improvements. The sale may be made without first offering the real estate and related personal property and improvements for sale to the public. The sale price shall be at least the appraised value as determined by the Board of Appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\022.wpd
CHAPTER 22

(HB 1029)

Appropriation to fund the rural residency program.


        ENTITLED, An Act to make an appropriation to the Department of Health to fund the rural residency program and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of two hundred five thousand dollars ($205,000), or so much thereof as may be necessary, to the Department of Health to support the development of a rural family medicine residency track for six medical students to address health care workforce shortages.

    Section 2. The secretary of the Department of Health shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 15, 2016
_______________
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LEGISLATURE AND STATUTES

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\023.wpd
CHAPTER 23

(SB 91)

Information provided to persons who sign initiated or referred laws.


        ENTITLED, An Act to revise certain provisions concerning the information on the forms provided to persons who sign initiated constitutional amendments, referred laws, or initiated measures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-1-1.1 be amended to read:

    2-1-1.1. The petition as it is to be circulated for an initiated constitutional amendment shall be filed with the secretary of state prior to circulation for signatures and shall:

            (1)    Contain the full text of the initiated constitutional amendment;

            (2)    Contain the date of the general election at which the initiated constitutional amendment is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized form that includes the names and addresses of the petition sponsors; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated constitutional amendment as prepared by the attorney general; the name, phone number, and email address of each petition sponsor; and a statement whether the petition circulator is a volunteer or paid petition circulator and, if a paid circulator, the amount the circulator is being paid. The form shall be approved by the secretary of state prior to circulation.

    For any initiated constitutional amendment petition, no signatures may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated constitutional amendment petition shall be filed with the secretary of state at least one year before the next general election. A sworn affidavit, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 2. That § 2-1-1.2 be amended to read:

    2-1-1.2. The petition as it is to be circulated for an initiated measure shall be filed with the secretary of state prior to circulation for signatures and shall:


            (1)    Contain the full text of the initiated measure;

            (2)    Contain the date of the general election at which the initiated measure is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized form that includes the names and addresses of the petition sponsors; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated measure as prepared by the attorney general; the name, phone number, and email address of each petition sponsor; and a statement whether the petition circulator is a volunteer or paid petition circulator and, if a paid circulator, the amount the circulator is being paid. The form shall be approved by the secretary of state prior to circulation.

    For any initiated measure petition, no signatures may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated measure petition shall be filed with the secretary of state at least one year before the next general election. A sworn affidavit, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 3. That § 2-1-3.1 be amended to read:

    2-1-3.1. The petition as it is to be circulated for a referred law shall be filed with the secretary of state prior to circulation for signatures and shall:

            (1)    Contain the title of the referred law;

            (2)    Contain the effective date of the referred law;

            (3)    Contain the date of the general election at which the referred law is to be submitted;

            (4)    Be accompanied by a notarized form that includes the names and addresses of the petition sponsors; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition shall be filed with the secretary of state within ninety days after the adjournment of the Legislature which passed the referred law. A sworn affidavit, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    The petition circulator shall provide to each person who signs the petition a form containing the title of the referred law; the name, phone number, and email address of each petition sponsor; and a statement whether the petition circulator is a volunteer or paid petition circulator and, if a paid circulator, the amount the circulator is being paid. The form shall be approved by the secretary of state prior to circulation.

    Section 4. That § 12-1-3 be amended by adding a NEW SUBDIVISION to read:


    "Paid circulator," any person who receives money or anything of value for collecting signatures for a petition;

     Signed March 14, 2016
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CHAPTER 24

(HB 1037)

Initiated measure petition requirements revised.


        ENTITLED, An Act to revise certain provisions concerning petitions for initiated constitutional amendments, initiated measures, and candidates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-1-1.1 be amended to read:

    2-1-1.1. The petition as it is to be circulated for an initiated constitutional amendment shall be filed with the secretary of state prior to circulation for signatures and shall:

            (1)    Contain the full text of the initiated constitutional amendment;

            (2)    Contain the date of the general election at which the initiated constitutional amendment is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized affidavit form signed by each person who is a petition sponsor that includes the names name and addresses address of the each petition sponsors sponsor; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated constitutional amendment as prepared by the attorney general. The form shall be approved by the secretary of state prior to circulation.

    For any initiated constitutional amendment petition, no signatures signature may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated constitutional amendment petition shall be filed with the secretary of state at least one year before the next general election. A sworn notarized affidavit form, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 2. That § 2-1-1.2 be amended to read:

    2-1-1.2. The petition as it is to be circulated for an initiated measure shall be filed with the secretary of state prior to circulation for signatures and shall:



            (1)    Contain the full text of the initiated measure;

            (2)    Contain the date of the general election at which the initiated measure is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized affidavit form signed by each person who is a petition sponsor that includes the names name and addresses address of the each petition sponsors sponsor; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated measure as prepared by the attorney general. The form shall be approved by the secretary of state prior to circulation.

    For any initiated measure petition, no signatures signature may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated measure petition shall be filed with the secretary of state at least one year before the next general election. A sworn notarized affidavit form, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 3. That § 12-13-25.1 be amended to read:

    12-13-25.1. Following receipt of the written comments of the director of the Legislative Research Council, the sponsors shall submit a copy of the initiative or initiated amendment to the Constitution in final form, to the attorney general. The attorney general shall prepare an attorney general's statement which consists of a title and explanation. The title shall be a concise statement of the subject of the proposed initiative or initiated amendment to the Constitution. The explanation shall be an objective, clear, and simple summary to educate the voters of the purpose and effect of the proposed initiated measure or initiated amendment to the Constitution. The attorney general shall include a description of the legal consequences of the proposed amendment or initiated measure, including the likely exposure of the state to liability if the proposed amendment or initiated measure is adopted. The explanation may not exceed two hundred words in length. The attorney general shall file the title and explanation with the secretary of state and shall provide a copy to the sponsors within sixty days of receipt of the initiative or initiated amendment to the Constitution.

    If the petition is filed as set forth in § 2-1-2 §§ 2-1-1.1 and 2-1-1.2, the attorney general shall deliver to the secretary of state before the third Tuesday in May a simple recitation of a "Yes" or "No" vote. On the printed ballots, the title shall be followed by the explanation and the explanation shall be followed, if applicable, by the fiscal impact statement prison or jail population cost estimate prepared pursuant to § 2-1-20 and then followed by the recitation.

    Section 4. That chapter 2-1 be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Petition circulator," any resident of the state of South Dakota who is at least eighteen years of age and who circulates a nominating petition or other petition for the purpose of placing a candidate or issue on any election ballot;

            (2)    "Petition sponsor," any person who proposes the placement of a statewide ballot measure

on the ballot.

     Signed February 12, 2016
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CHAPTER 25

(SB 143)

Legislative Planning Committee
to implement performance management review.


        ENTITLED, An Act to require the Legislative Planning Committee to implement a performance management review process.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 2-6 be amended by adding a NEW SECTION to read:

    The Legislative Planning Committee shall develop and implement a performance management review process that provides the Legislature with a consistent system to evaluate the efficiency and effectiveness of state agencies and to provide additional government transparency and accountability to the public.

    Section 2. That chapter 2-6 be amended by adding a NEW SECTION to read:

    For the purposes of this Act, performance management is an ongoing, systematic approach to improving outcomes with a focus on accountability for performance by utilizing data-based measurements. For the purposes of this Act, a state agency is any department or other unit of government in the executive branch of state government, but does not include any unit of local government.

    Section 3. That chapter 2-6 be amended by adding a NEW SECTION to read:

    The Legislative Planning Committee shall establish a schedule whereby the committee reviews the performance management of each state agency at least once every three years. The performance management review shall include the following:

            (1)    The strategic goals of each agency with specific, quantifiable outcomes and measurements to track progress toward those goals;

            (2)    A description of how the resources allocated to the agency's programs and strategies will result in the agency's defined outcomes; and

            (3)    Identification of the performance measurements that will be used to determine if the agency is achieving desired outcomes.

    Section 4. That chapter 2-6 be amended by adding a NEW SECTION to read:

    Once the Legislative Planning Committee has completed a performance management review of a state agency, and the committee has approved the agency's desired outcomes and accompanying performance measures, the agency shall provide the committee with a report highlighting up to six of the performance measures that show the progress being made toward the desired outcomes. Thereafter, the report shall be updated by the agency annually and submitted to the committee no

later than November fifteenth. Each agency report shall include the source of the information and references to where legislators can obtain further information.

    Section 5. That chapter 2-6 be amended by adding a NEW SECTION to read:

    The Legislative Research Council shall compile the reports provided pursuant to section 4 of this Act, and distribute a compiled report to each member of the Legislative Planning Committee, the chair and vice chair of the Joint Committee on Appropriations, and the chair and vice chair of the Government Operations and Audit Committee. During the first week of the legislative session each year, members of the Legislative Planning Committee shall present and review the compiled report with legislators in each legislative body. Individual reports may also be distributed to the chair of any standing committee of the Legislature as determined by the chair of the Legislative Planning Committee.

    To ensure public accountability, the Legislative Research Council shall develop a website that contains the compiled report and the references where further information can be located.

     Signed March 16, 2016
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CHAPTER 26

(SB 1)

Executive Board of the Legislative Research Council,
authority revised.


        ENTITLED, An Act to revise certain provisions regarding the Executive Board of the Legislative Research Council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-9-2 be amended to read:

    2-9-2. The Legislative Research Council shall have an executive board, to be known as the Executive Board of the Legislative Research Council, which shall consist of fifteen members, as follows: four members from the Senate and five members from the House of Representatives, to be elected by a majority vote by their respective legislative bodies in party caucus before each regular session of the Legislature held in odd-numbered years, and ex officio the president pro tempore, majority leader, and minority leader of the Senate and the speaker, majority leader, and minority leader of the House of Representatives elected in such regular session. The number of senate and house members on the executive board shall remain constant, and any vacancy occurring shall be filled by the respective legislative bodies in party caucus. If a vacancy occurs in the ex officio position on the board for the president pro tempore, the vacancy on the board shall be filled by the majority party caucus until the Senate elects a new president pro tempore. If a vacancy occurs in the ex officio position on the board for the speaker, the vacancy on the board shall be filled by the speaker pro tempore until the House of Representatives elects a new speaker. No board member, excepting ex officio, may serve more than three successive terms.

    Section 2. That § 2-9-3 be amended to read:

    2-9-3. In each term of the executive board operating in an odd-numbered year, the The speaker of the House of Representatives shall be is the chair of the executive board, and the president pro tempore of the Senate shall be is the vice chair from the first day of the regular session of the

Legislature in an odd-numbered year to the day prior to the first day of the regular session of the Legislature in an even-numbered year, inclusive. In each term of the executive board operating in an even-numbered year, the The president pro tempore of the Senate shall be is the chair of the executive board, and the speaker of the House of Representatives shall be is the vice chair from the first day of the regular session of the Legislature in an even-numbered year to the day prior to the first day of the regular session of the Legislature in an odd-numbered year, inclusive. If a vacancy occurs in the position of speaker of the House of Representatives, the speaker pro tempore shall serve as chair or vice chair of the board, as provided by this section, until the House of Representatives elects a new speaker. If a vacancy occurs in the position of president pro tempore, the majority party caucus shall appoint a Senate member of the board to serve as chair or vice chair of the board, as provided by this section, until the Senate elects a new president pro tempore.

    Section 3. That § 2-9-5 be amended to read:

    2-9-5. The executive board shall meet as often as may be necessary to perform its duties; provided that in any event, it. The board shall meet at least four times each year. All regular meetings shall be held at the state capitol. A majority of the members shall constitute constitutes a quorum, and a majority thereof shall have authority to of the quorum may act on any matter falling within the scope of the executive board's duties, powers, and authority. The board shall make its own rules and regulations, keep complete minutes of its meetings, and prepare an annual report to be placed on file in the Legislative Research Council Office.

    Section 4. That § 2-9-8 be amended to read:

    2-9-8. The executive board is hereby authorized and empowered to shall appoint a director of the Legislative Research Council and. The director shall employ such clerks, assistants, and other help the members of the Legislative Research Council staff and provide such procure the supplies and equipment as may be necessary to assist the Legislature.

     Signed March 10, 2016
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CHAPTER 27

(HB 1238)

Powers and duties of the Executive Board
of the Legislative Research Council, revised.


        ENTITLED, An Act to revise the powers and duties of the Executive Board of the Legislative Research Council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-9-4 be amended to read:

    2-9-4. The executive board shall:

            (1)    Instigate research and collect information concerning the government and general welfare of the state;

            (2)    Investigate and make recommendations concerning important issues of public policy and questions of statewide interest;

            (3)    Prepare a legislative program in the form of bills, or otherwise, as in its opinion the welfare of the state may require, to be presented to the Legislature;

            (4)    Cooperate with the administration in devising means of enforcing the law;

            (5)    Study, inquire, make recommendations and propose bills in any phase or branch of state government so deemed advisable and necessary;

            (6)    Appoint and name committees from the members of the State Legislative Research Council, and assign to such committee or committees appropriate subjects and projects of whatever character and nature the executive board deems advisable. Each member of the council is entitled to membership on one study committee of his the member's choice insofar as practicable;

            (7)    Conduct legislative oversight and management analysis of the executive branch of government by means of a selective program of performance auditing and cooperate with the administration in improving the efficiency and effectiveness of administrative methods;

            (8)    Review and make recommendations for further legislative action regarding the opinions of state and federal courts which have sought to interpret the intent of South Dakota legislative acts; and

            (9)    Allocate funds to the House of Representatives and the Senate to pay for out-of-state travel and salary or per diem costs incurred by members, and to pay for in-state travel and salary or per diem costs incurred by members, excluding costs associated with any legislative session. The Legislative Research Council shall make payments to representatives for costs and travel approved by the speaker of the House of Representatives, from the funds allocated to the House of Representatives, and shall make payments to senators for costs and travel approved by the president pro tempore of the Senate, from the funds allocated to the Senate. Any payment decision of the speaker of the House of Representatives may be appealed to the members of the executive board from the House of Representatives. Any payment decision of the president pro tempore of the Senate may be appealed to the members of the executive board from the Senate. No funds may be paid beyond the amounts allocated to each body.

     Signed March 16, 2016
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CHAPTER 28

(SB 150)

Additional interns for the minority party.


        ENTITLED, An Act to revise provisions related to the legislative intern program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 2-9 be amended by adding a NEW SECTION to read:

    The Executive Board of the Legislative Research Council shall assign college student interns to the legislative branch of government. The Executive Board shall set the number of interns and divide the total number of interns between the political parties in each chamber in proportion to the party

membership in each chamber as nearly as is practicable. The minority party in each house shall have a minimum of three interns.

    Section 2. That § 2-9-17 be repealed.

    Section 3. That § 2-9-18 be repealed.

    Section 4. That § 2-9-18.1 be repealed.

    Section 5. That § 2-9-19 be repealed.

     Signed March 9, 2016
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CHAPTER 29

(SB 32)

Legislation enacted in 2015, codified.


        ENTITLED, An Act to codify legislation enacted in 2015.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-16-13 be amended to read:

    2-16-13. The official code of laws of the State of South Dakota, which may be referred to as the code, consists of all the statutes of a general and permanent nature contained in:

            (1)    The 2004 revision of volume 1;

            (2)    The 2012 revision of volume 2;

            (3)    The 2013 revision of volume 3;

            (4)    The 2004 revision of volume 4;

            (5)    The 2004 revision of volume 5;

            (6)    The 2004 revision of volume 6;

            (7)    The 2010 revision of volume 7;

            (8)    The 2004 revision of volume 8;

            (9)    The 2004 revision of volume 9;

            (10)    The 2014 revision of volume 10;

            (11)    The 2014 revision of volume 10A;

            (12)    The 2014 revision of volume 11;

            (13)    The 2004 revision of volume 12;

            (14)    The 2004 revision of volume 13;

            (15)    The 2006 revision of volume 14;

            (16)    The 2004 revision of volume 15;

            (17)    The 2013 revision of volume 16;

            (18)    The 2004 revision of volume 17;

            (19)    The 2004 revision of volume 18;

            (20)    The 2011 revision of volume 19;

            (21)    The 2011 revision of volume 19A;

            (22)    The 2011 revision of volume 20;

            (23)    The 2013 revision of volume 21;

            (24)    The 2004 2015 revision of volume 22;

            (25)    The 2015 revision of volume 22A;

            (26)    The 2004 revision of volume 23;

            (26)(27)    The 2004 revision of volume 24;

            (27)(28)    The 2004 revision of volume 25;

            (28)(29)    The 2004 revision of volume 26;

            (29)(30)    The 2007 revision of volume 27;

            (30)(31)    The 2004 revision of volume 28;

            (31)(32)    The 2004 revision of volume 29;

            (32)(33)    The 2012 revision of volume 30;

            (33)(34)    The 2012 revision of volume 31;

            (34)(35)    The 2004 revision of volume 32;

            (35)(36)    The 2004 revision of volume 33;

            (36)(37)    The 2009 2015 revision of volume 34;

            (37)(38)    The 2004 revision of the Parallel Tables volume;

            (38)(39)    The December 2014 2015 Interim Annotation Service of the South Dakota Codified Laws beginning with Title 1, chapter 1-1 and ending with Title 62, chapter 62-9; and

            (39)(40)    The 2014 2015 cumulative annual pocket parts and supplementary pamphlet.

    Section 2. That § 2-16-15 be amended to read:

    2-16-15. No provision of the code enacted by § 2-16-13, as to which any action or proceeding, civil or criminal, has been commenced prior to July 1, 2015 2016, to determine whether or not such provision was constitutionally enacted, is validated by the enactment of this code.

    The enactment of the code:

            (1)    Does not affect the validity of any transaction;

            (2)    Does not impair the curative or legalizing effect of any statute; and

            (3)    Does not release or extinguish any penalty, confiscation, forfeiture, or liability; which accrued, occurred, or took effect prior to the time the code took effect.

    Section 3. That § 2-16-16 be amended to read:

    2-16-16. All statutes, other than this code, enacted at the 2015 2016 session of the Legislature shall be deemed to have been enacted subsequently to the enactment of this code. If any such statute repeals, amends, contravenes, or is inconsistent with the provisions of this code, the provisions of the statute shall prevail. Any enactment in the 2015 2016 session of the Legislature which cites South Dakota Codified Laws for the purpose of amendment or repeal, shall be construed as having reference to the code enacted by § 2-16-13.

     Signed February 8, 2016
_______________
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PUBLIC OFFICERS AND EMPLOYEES

_______________


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CHAPTER 30

(HB 1056)

Veterans' preference in employment revised.


        ENTITLED, An Act to revise certain provisions relating to the veterans' preference in employment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 3-3-1 be amended to read as follows:

    3-3-1. In all public departments and subdivisions and upon all public works of this state and of the counties, municipalities, and school districts of this state, any veteran, as defined in § 33A-2-1, who is a citizen of the United States, shall receive preference for appointment, employment, and promotion. Age, loss of limb, or other physical impairment which does not in fact incapacitate does not disqualify the veteran if the veteran possesses the qualifications and business capacity necessary to discharge the duties of the position involved. A veteran who has a service-connected disability shall be given a preference over a nondisabled veteran. In order to determine if the veterans' preference applies, each applicant for employment under this chapter shall complete an employment application on which the applicant is asked if the applicant is a veteran as defined by § 33A-2-1.


    Section 2. That § 3-3-2 be amended to read as follows:

    3-3-2. If a veteran as defined in § 33A-2-1 applies for appointment for employment under this chapter, the officer, board, or person whose duty it is to appoint or employ some person to fill the position shall, before appointing or employing anyone to fill the position, investigate the qualifications of the applicant. If the applicant is of good moral character and can perform the duties of the position, the officer, board, or person shall appoint the applicant to the position possesses at least the minimum qualifications necessary to fill the position, the officer, board, or person shall interview the applicant.

    Section 3. That chapter 3-3 be amended by adding a NEW SECTION to read:

    Beginning on July 1, 2016, the Department of Veterans Affairs shall coordinate with the Veterans Commission and the South Dakota Veterans Council to create informative materials about current state laws pertaining to veterans' preference in employment to be both posted on the Department of Veterans Affairs website for public access and for distribution by the council and its member organizations.

     Signed February 18, 2016
_______________
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CHAPTER 31

(SB 14)

South Dakota Retirement System
revise and repeal provisions related to retirement.


        ENTITLED, An Act to revise certain administrative provisions and repeal certain obsolete provisions concerning the South Dakota Retirement System.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 3-12-52 be amended to read:

    3-12-52. The Board of Trustees board shall meet at least twice each year, and shall adopt its own rules of procedure. A majority of trustees constitutes a quorum. At the first meeting of each fiscal year the board shall elect from the board's membership a chair and a vice chair. At least eight concurrent votes and a majority of the members present are required for a decision by the board for any of its meetings.

    Section 2. That § 3-12-55 be amended to read:

    3-12-55. The Board of Trustees board shall appoint an administrator executive director, qualified by training and experience, to serve at the pleasure of the Board of Trustees board. The annual salary of the administrator executive director may be adjusted annually by the same rate appropriated as the across-the-board increase to base salaries of state employees under the General Appropriations Act in each corresponding year.

    Before May first of each year, the board shall recommend any additional salary adjustment above the across-the-board increase for the administrator executive director for the upcoming fiscal year. This salary adjustment is not effective unless it is approved by a majority vote of the members of the Retirement Laws Committee. The administrator executive director may hire additional employees as may be required to transact the business of the retirement system and shall fix the remuneration

for such services. The board shall require the bonding of the administrator executive director in an amount set by the board which shall be included under the state employees' blanket bond. The premium may be charged to the fund.

    Section 3. That § 3-12-56 be amended to read:

    3-12-56. Applications for membership for new or additional benefits, credited service, or benefit payments which may be granted by the Board of Trustees board shall be made to the administrator executive director on forms approved by the board.

    Section 4. That § 3-12-57.1 be amended to read:

    3-12-57.1. Any person aggrieved by a determination made by the system's staff may request review of the determination and a decision by the administrator executive director. The person, if then aggrieved by the administrator's executive director's decision, may appeal the decision, if the person files a written notice of appeal with the administrator executive director within thirty days of the date of the decision. The notice shall identify the person appealing and the decision appealed. The appeal shall be conducted by a hearing examiner in accordance with chapter 1-26. The hearing examiner, after hearing the evidence in the matter, shall make proposed findings of fact and conclusions of law, and a proposed decision. The administrator executive director shall accept, reject, or modify those findings, conclusions, and decision. The administrator executive director may arrange for the assistance of private counsel throughout the administrator's executive director's review of the proposal. The administrator's executive director's action constitutes the final agency decision. The final agency decision may be appealed to circuit court pursuant to chapter 1-26.

    Section 5. That § 3-12-61 be amended to read:

    3-12-61. The South Dakota Retirement System expense fund is hereby continued and the Board of Trustees board is hereby authorized to transfer from the South Dakota Retirement System fund an annual amount not to exceed three percent of the annual contributions received by the system, and the moneys so money transferred are hereby is appropriated for the payment of the administrative costs of the system, provided that the. The board shall report its proposed annual budget to the Legislature for its approval, within the budget report of the Department of Labor and Regulation. Expenditures from all funds shall be disbursed on warrants drawn by the state auditor and shall be supported by vouchers approved by the administrator executive director of the system.

    Section 6. That § 3-12-62.1 be amended to read:

    3-12-62.1. All personnel hired on or after July 1 June 30, 1980, by the divisions of the Department of Labor and Regulation established by §§ 61-2-10 and 61-2-10.1 shall be members of the system. Any individual so employed prior to before July 1, 1980, may elect to become a member of the system, if that election is made prior to before July 1, 1981. Benefits accrued to a member prior to the date of such election shall be continued and may not be considered as other public benefits, as defined in subdivision 3-12-47(49), for the purposes of calculating or offsetting any benefit resulting from participation in the system. Credited service earned under the retirement system provided by chapter 61-2 may not be counted for the purpose of calculation of benefits under chapter 3-12. For any individual who elects to be a member of the system pursuant to this section, credited service earned under the retirement system provided by chapter 61-2 shall be counted for the purpose of vesting under chapter 3-12 and for the eligibility requirements under §§ 3-12-95 and 3-12-98, provided that for any family or disability benefits pursuant to this chapter, if contributions made to the system provided under chapter 61-2 are not withdrawn.

    Section 7. That § 3-12-63 be amended to read:

    3-12-63. Membership in the system shall exclude the following:


            (1)    All elective officers except justices and judges, unless such person elects and is otherwise qualified to become a member of the system;

            (2)    All personnel in the Department of Labor and Regulation who were employed prior to before July 1, 1980, and who elect to remain participants in the retirement system provided by chapter 61-2;

            (3)    The governing body of any participating county, municipality, or other political subdivision; and

            (4)    All personnel employed by the municipality of Sioux Falls prior to before July 1, 2013. However, any person employed prior to before July 1, 2013, who separates from service with the municipality of Sioux Falls and is subsequently rehired by the municipality of Sioux Falls and begins working after June 30, 2013, as a permanent full-time employee as defined in subdivision 3-12-47(54), shall be a member of the system.

    Section 8. That § 3-12-67.1 be amended to read:

    3-12-67.1. Notwithstanding the provisions of § 3-12-67, any employee of the municipality of Sioux Falls who begins working after June 30, 2013, as a permanent full-time employee as defined in subdivision 3-12-47(54) shall be a member of the system if the municipality of Sioux Falls elects to be a participating unit by a duly passed resolution of its governing body.

    Section 9. That § 3-12-69 be amended to read:

    3-12-69. Employees of an eligible political subdivision or public corporation not participating in the systems consolidated into the system created by this chapter, may become a participating unit in the system if the unit commits to deposit an amount equal to the present value of the benefits earned to date, based on the employee's prior service to the unit to be covered by the system. The expense of the actuarial determination of this amount shall be borne by the applicant. All eligible employees of an applicant shall participate in the system upon admission. If the unit is unable to deposit this amount in a single sum, the unit shall have the option to pay the amount by periodic level installments over a period up to twenty years, the value of which, when discounted for compound interest at the effective rate assumed rate of return, is equal to the amount due at the date of participation.

    Section 10. That § 3-12-72 be amended to read:

    3-12-72. All employee and employer contributions to the system and the necessary supporting data shall be transmitted by the employer at least monthly to the administration office of the system. Each such monthly transmission for each respective calendar month shall be completed by the fifteenth day of the following month. All supporting data shall be transmitted electronically in a format determined by system personnel. All contributions shall be deposited with the state treasurer in the fund duly established to administer this chapter. If any participating unit fails to deliver contributions with respect to compensation paid in any month and the necessary supporting data by the fifteenth day of the following month, the participating unit shall pay to the system a penalty equal to five percent of the delinquent contributions. The delinquent contributions and the penalty shall bear interest at the assumed rate of return from the date due until the date paid. In calculating accumulated contributions pursuant to subdivision 3-12-47(2), all contributions with respect to compensation paid in any fiscal year shall be included in the calculation of interest credited for that fiscal year.

    Section 11. That § 3-12-72.4 be amended to read:

    3-12-72.4. If a participating unit determines that a governmental function is to be privatized, the participating unit shall pass a resolution to that effect determining the date that its employees will

cease to be public employees eligible for membership in the system. The participating unit shall notify the system and the employees affected of its the resolution and, after the effective date, cease to make contributions to the South Dakota Retirement System as required in §§ 3-12-71 and 3-12-72. Any member affected by privatization is entitled to the benefits accrued as of the effective date under the provisions of chapter 3-12. For the purposes of determining eligibility for vesting pursuant to subdivision § 3-12-47(73) and early retirement pursuant to § 3-12-106, years of service with the successor employer shall be considered.

    Section 12. That § 3-12-74 be amended to read:

    3-12-74. If any participating unit becomes delinquent thirty or more days by failure or refusal to pay any amounts due to the system, the state treasurer shall, upon certification by the administrator executive director of the delinquency, withhold and deduct the amount of the delinquency, penalty, and interest as specified in § 3-12-72 from the next succeeding payment or payments of any money in the hands of the state treasurer due and payable to the participating unit.

    Section 13. That § 3-12-77.3 be amended to read:

    3-12-77.3. Any rights which have terminated pursuant to the provisions of § 3-12-77 or 3-12-77.1 may be reinstated upon presentation to the system administrator executive director of a request for reinstatement of those rights and competent evidence of the rights.

    Section 14. That § 3-12-81.1 be amended to read:

    3-12-81.1. If a retired member becomes reemployed as a permanent full-time employee by a participating unit, the member first shall have terminated the member's employment relationship with the initial participating unit, as outlined in subdivision 3-12-47(70) as the term, terminated, is defined in this chapter and as required pursuant to Revenue Ruling 57-115 by the Internal Revenue Service. The initial participating unit's system representative shall certify to the system that the termination of the employment relationship took place. In addition, any second participating unit shall subject the member shall have been subject to all proceedings and requirements associated with the hiring and employment of any new employee by the second participating unit, and that unit's system representative shall so certify to the system. If a single participating unit is both the member's initial participating unit and the member's second participating unit, it the unit shall follow all termination procedures and all hiring procedures relative to the member as outlined by this section, and its chief executive officer, the officer's agent, or the chair of its the unit's governing commission or board shall so certify.

    Section 15. That § 3-12-82 be amended to read:

    3-12-82. If less than three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) is acquired after a retired member's reentry into covered employment, the member upon subsequent retirement shall receive a refund of the member's accumulated contributions.

    If three years or more of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) are acquired after a retired member's reentry into covered employment, the member upon subsequent retirement may receive either a refund of the member's accumulated contributions or an additional allowance based upon the member's credited service and final compensation earned during such reentry. Only the member's credited service from the subsequent employment shall be taken into account in calculating a reduction pursuant to § 3-12-106, if any, in the member's additional allowance. In addition, the annual increase applied to the original allowance pursuant to § 3-12-88 shall be eliminated for such the period of reemployment, unless the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reentered covered employment as a Class A member.

    The provisions of this section apply to any member who retired without any reduction in benefits pursuant to § 3-12-106 and who reenters covered employment on or after July 1 June 30, 2004, but prior to before April 1, 2010.

    Section 16. That § 3-12-86.1 be amended to read:

    3-12-86.1. If a member on leave of absence performing initial qualified military service dies, the member shall be considered to have returned from the leave of absence on the day prior to before the member's death and become a contributing member for purposes of survivor benefits pursuant to § 3-12-95 § 3-12-95.5, if the member has at least one year of credited service prior to the member's death, including the initial period of qualified military service. If the member was contributing for additional survivor protection benefits pursuant to § 3-12-104 immediately prior to before the leave of absence, the member shall be considered to have resumed such the contributions on the day prior to before the member's death.

    If a member on leave of absence performing initial qualified military service becomes disabled pursuant to the disability criteria set out in chapter 3-12 and ARSD chapter 62:01:04, the member shall be considered to have returned from the leave of absence on the day prior to before the member's discharge date and become a contributing member for purposes of eligibility for disability benefits pursuant to § 3-12-98 § 3-12-201, if the member has at least three years of credited service including the period of initial qualified military service. The provisions of § 3-12-98 § 3-12-201 notwithstanding, the member need not have been deemed to be a contributing member on the date of the member's disabling event.

    Section 17. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Beginning January 1, 2009, to the extent required by § 414(u)(12) of the Internal Revenue Code, a member receiving differential wage payments, as defined under § 3401(h)(2) of the Internal Revenue Code, from a member's employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under § 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated members in a reasonably equivalent manner.

    Section 18. That § 3-12-87 be amended to read:

    3-12-87. Payment of a deposit with the system for credited service pursuant to §§ 3-12-83 to 3-12-86, inclusive, shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic, level installments over a period of up to ten years, the value of which, when discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due the system, but, unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. In the event If the periodic payments are not completed or paid when due, the administrator executive director may make an appropriate adjustment to the credited service, benefits payable under this chapter, or schedule of payments to allow for the default. Any member participating in installment payments pursuant to this section prior to before July 1, 1989, shall have the balance due on July 1, 1989, recalculated pursuant to §§ 3-12-83 and 3-12-84 and shall have the installment payments due on or after July 1 June 30, 1989, recalculated accordingly. The provisions of this section apply only to installment payment purchases of credited service that are not tax-deferred, but and do not apply to tax-deferred purchases pursuant to § 3-12-83.2.

    Section 19. That § 3-12-95.2 be amended to read:

    3-12-95.2. The conservator and custodian provisions of subdivision 3-12-95(2) and § 3-12-95.1 notwithstanding, the benefit becomes payable directly to a child when the child reaches eighteen

years of age. The benefit shall be eliminated when the child becomes ineligible pursuant to subdivision 3-12-47(14).

    Section 20. That § 3-12-95.3 be amended to read:

    3-12-95.3. That The portion of a family benefit that is payable on account of children pursuant to subdivision 3-12-95(1) shall be eliminated as each child becomes ineligible pursuant to subdivision 3-12-47(14). The benefit shall be eliminated altogether when the youngest child becomes ineligible pursuant to subdivisions 3-12-47(14).

    Section 21. That § 3-12-98 be amended to read:

    3-12-98. A contributing member who becomes disabled and who has acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) since the member's most recent entry into active status and prior to becoming disabled or was disabled by accidental means while performing usual duties for an employer, is eligible for a disability benefit if the disability is expected to be of long, continued, and indefinite duration of at least one year. In order to be eligible for a disability benefit, a member must be disabled on the date the member's contributory service ends. Any member who fails to file an application for disability benefits with the administrator executive director within three years of after the date on which the member's contributory service ends, forfeits all rights to disability benefits. Any information required for a complete application must be received within one year after the application for disability benefits was received. If the required information is not received by the system within one year after the application is received, the member may reapply. For purposes of this section, a transfer within a participating unit, or a change in employment from one participating unit to another participating unit if there is no break in contributory service, does not constitute a new entry into active status. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to before July 1, 2015.

    Section 22. That § 3-12-99.1 be amended to read:

    3-12-99.1. That portion of a disability benefit that is payable on account of children shall be eliminated as each child becomes ineligible pursuant to subdivision 3-12-47(14). However, that the portion of a disability benefit that is payable on account of children shall increase if a disabled member gains an additional child who is eligible pursuant to subdivision 3-12-47(14). All other provisions in § 3-12-101 do not apply to members receiving a disability benefit pursuant to this chapter. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to before July 1, 2015.

    Section 23. That § 3-12-114 be amended to read:

    3-12-114. If any change or error in the records of the system or any participating unit results in any person receiving from the system less than the person would have been entitled to receive had the records been correct, the administrator executive director shall correct the error and, as far as practicable, shall adjust the payment to provide the person the amount to which the person is correctly entitled.

    If any change or error in the records of the system or any participating unit results in any person receiving from the system more than the person would have been entitled to receive had the records been correct, the administrator executive director shall correct the error and, as far as practicable, shall recover the overpayment to reflect the amount to which the person is correctly entitled. The board shall promulgate rules, pursuant to chapter 1-26, concerning the methods by which an overpayment shall be repaid, including an actuarial equivalent. However, the recovery of an overpayment is limited to the amount attributable to any error that occurred during the six-year period immediately prior to before the discovery of the error. This limitation does not apply in the case of fraud, intentional misrepresentation, material omission, or other fault on the part of a member

or beneficiary.

    Section 24. That § 3-12-116 be amended to read:

    3-12-116. If a designated beneficiary does not survive the member, any lump-sum payment that may be due shall be payable to the member's surviving spouse. If there is no surviving spouse, the payment shall be payable to all of the member's surviving children, irrespective of age, on a share-alike basis. If there is no surviving spouse and there are no surviving children, the payment shall be payable to the estate of the deceased member. If no claim for payment due upon the death of a deceased member is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the administrator executive director, payment of the claim is warranted by exceptional circumstances.

    Section 25. That § 3-12-118 be amended to read:

    3-12-118. The Board of Trustees board shall retain the services of an independent contractor, not involved in the investment process, to make a report to the board not less than every four years on the investment performance results of the assets of the retirement funds. The report shall include, but not be limited to, the investment for the total portfolio and each major investment category thereof; a comparison of the investment return on the common stocks in the portfolio to market indices in general use and to the results achieved by other institutional investors of pension funds; and an appraisal of the success of the management of the actively traded bond portfolio, including a comparison of the return on the bonds in the portfolio to the bond indices in general use and a quantitative estimate of the aggregate gains or losses arising out of the portfolio transactions, both current exchanges and those that have to be worked out over time by a series of trades.

    Section 26. That § 3-12-122 be amended to read:

    3-12-122. The board shall review the funding of the system and shall make a report to the Governor and the Retirement Laws Committee if any of the following conditions exist as of the latest annual actuarial valuation of the system:

            (1)    The contributions do not equal the actuarial requirement for funding;

            (2)    The funded ratio is less than eighty percent, or a ratio based on the market fair value of assets is less than eighty percent; or

            (3)    The market fair value of assets is less than ninety percent of the actuarial value of assets.

    The report shall include an analysis of the conditions and recommendations for the circumstances and timing for any future benefit changes, contribution changes, or any other corrective action, or any combination of actions, to improve the conditions. Based on this report and the recommendations of the board, the Legislature may adopt benefit changes, contribution changes, or any other corrective action, or any combination of actions, to improve the conditions set out in this section.

    If any of the conditions set out in this section exist for a period of three consecutive annual actuarial valuations, the board shall recommend benefit reductions changes, contribution changes, or any other corrective action, or any combination of actions, for approval by the Legislature and the Governor, effective as soon as possible, to improve the conditions set out in this section.

    Eligibility for benefits, the amount of any benefit, and the rate of member contributions established in this chapter are not the contractual rights of any member and are subject to change by the Legislature for purposes of corrective action to improve the conditions established in this section.

    Section 27. That § 3-12-127 be amended to read:

    3-12-127. Notwithstanding the repeal on July 1, 1974, of chapters 3-12; 3-13; 9-15; 13-45; certain provisions of chapter 16-8; chapter 16-11A; and certain provisions of chapter 33-13, all members of systems established thereunder shall be entitled to retire at the age, with the length of service and the benefits available to them under those provisions or the provisions of this chapter. For the purposes of this section, the administrator executive director shall retain as part of the permanent files of his office all volumes of the South Dakota Compiled Codified Laws, together with the 1973 pocket supplements thereto.

    Section 28. That § 3-12-130 be amended to read:

    3-12-130. A current contributing Class B member other than a justice, judge, or magistrate judge, may convert credited service as a county sheriff or deputy county sheriff prior to before January 1, 1980, or credited service as a county sheriff or deputy county sheriff while not certified from January 1, 1980, to June 30, 1988, inclusive; credited service as a police officer while not certified from July 1, 1983, to June 30, 1988, inclusive; credited service as a penitentiary correctional staff member prior to before July 1, 1978; credited service as a conservation officer prior to before July 1, 1983; credited service as a parole agent prior to before July 1, 1991; and credited service as an air rescue firefighter prior to before July 1, 1992, from credited service as a Class A member with benefits provided in accordance with § 3-12-91 to credited service as a Class B member other than a justice, judge, or magistrate judge, with benefits provided in accordance with § 3-12-92, by election to make, or have made on the member's behalf, contributions based on the higher of the member's current compensation, or the member's final average compensation calculated as if the member retired on the date of election, at an actuarially-determined percentage times each year of service for which the member wishes to receive such Class B credit. The provisions of this section also apply to a current contributing Class B member, other than a justice, judge, or magistrate judge, who previously has purchased equivalent public service pursuant to the provisions of § 3-12-84.

    Payment of a deposit with the system for the conversion of credited service in accordance with this section shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic level installments over a period of up to ten years, the value of which, if discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due to the system, but unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. If the periodic payments are not completed or paid when due, the administrator executive director may make a pro rata adjustment to the credited service, benefits payable under this chapter or schedule of payments to allow for the default.

    If the credited service of any member or group of members becomes Class B credited service on a prospective basis on or after July 1 June 30, 1993, the prior credited service as a Class A member may be converted to Class B credited service in accordance with this section. If a jailer becomes a Class B member other than a justice, judge, or magistrate judge pursuant to subdivision 3-12-47(25) or subdivision 3-12-47(55), the jailer is eligible to convert prior credited service as a jailer under this section.

    Section 29. That § 3-12-143 be amended to read:

    3-12-143. For the first thirty-six months of a disability benefit provided by § 3-12-99, the maximum amount that a member may receive in any calendar year from the disability benefit and earned income, as defined in § 32(c)(2) of the Internal Revenue Code, is one hundred percent of the member's final average compensation. Starting with the thirty-seventh month of such the disability benefit, the maximum amount that a member may receive in any calendar year from disability benefits provided by the federal Social Security Act equal to the primary insurance amount, the disability benefit provided by this chapter and earned income, as defined in § 32(c)(2) of the Internal

Revenue Code, is one hundred percent of the member's final average compensation. The maximum amount shall be indexed for each full fiscal year during which the member is eligible for such disability benefit by the improvement factor defined in subdivision 3-12-47(41). Any amount exceeding this maximum amount shall reduce each monthly disability benefit payable pursuant to § 3-12-99 in the following fiscal year on a pro rata basis.

    Any member eligible to receive a disability benefit shall report to the system in writing any earned income of the member. The report shall be filed with the system no later than May thirty-first before June first following the end of each calendar year in which a disability benefit is paid. A disabled member may file a signed copy of the member's individual income tax return in lieu of the report. No report or return need be filed for the calendar year in which the member dies or converts to a normal or early retirement benefit under this chapter. The disability benefit of any member failing to file a report or return as required in this section shall be suspended until the report or return is filed. The reduction may occur, however, only if a disability benefit is being paid by the system, but may not reduce the disability benefit below the minimum provided for in § 3-12-99.

    This section applies to any member receiving or entitled to receive a disability benefit pursuant to § 3-12-98.

    Section 30. That § 3-12-190 be amended to read:

    3-12-190. On an annual basis, at minimum, the board shall establish an interest rate assumption upon which the provisions of subsequent supplemental pension contracts shall be based. The board shall establish the assumption on the basis of the recommendations of the system's actuary and the state investment officer. The interest rate assumption may not be greater than the actuarial assumed rate of return for the fund, nor may the interest rate assumption be less than the effective rate of interest described in subdivision 3-12-47(27). Any other provision of law notwithstanding, the board may suspend issuance of new supplemental pension contracts at any time. Any suspension of new supplemental pension contracts shall be prospective in operation and may not affect supplemental pension contracts already in effect.

    The structure administration of the supplemental pension benefit administration requires that supplemental pension benefit purchase costs vary from one time period to the next. Consequently, participants who accept the option of a supplemental pension benefit have no expectation or fundamental right to any particular supplemental pension benefit purchase price.

    Section 31. That § 3-12-193 be amended to read:

    3-12-193. A supplemental pension participant shall receive an annual increase in the amount of the participant's supplemental pension benefit for each year commencing on the July first following the date on which the benefit was first payable, and equal to the improvement factor established in subdivision 3-12-47(41) applicable to the participant. If a supplemental pension contract goes into effect prior to before July 1, 2010, and if the first annual increase is for a period of less than twelve months, the initial increase shall be prorated as described in that subdivision. If a supplemental pension contract goes into effect on or after July 1 June 30, 2010, there shall be no initial prorated annual increase for a period of less than twelve months.

    Section 32. That § 3-12-194 be amended to read:

    3-12-194. If payment of monthly supplemental pension benefits ceases due to the death of the participant or the death of a supplemental pension spouse, and the total of monthly supplemental pension benefits paid is less than the amount of the participant's single premium, the difference between the total benefits paid and the single premium shall be disbursed in a lump sum as provided in this section. Amounts payable under this section shall be disbursed as follows:

            (1)    To the beneficiary or entity designated by the participant in the participant's supplemental

pension contract record, if any is designated;

            (2)    If no beneficiary or entity is designated, then to all surviving children of the participant, irrespective of age, on a share-alike basis; or

            (3)    If no beneficiary or entity is designated and there are no surviving children, then to the participant's estate.

    If no claim for payment due upon the death of a deceased participant is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the administrator executive director, payment of the claim is warranted by exceptional circumstances.

    The provisions of this section are not affected by the provisions of § 3-12-110 or 3-12-116.

    Section 33. That § 3-12-195 be amended to read:

    3-12-195. Supplemental pension contract purchases and supplemental pension benefit payments administered pursuant to the provisions of §§ 3-12-189 to 3-12-198, inclusive, are considered to be qualified plan distributed annuity contracts under Internal Revenue Service Treasury Regulation 1.402(c)-2, as amended through January 1, 2008.

    Section 34. That § 3-12-199 be amended to read:

    3-12-199. If, on or after April 1 March 31, 2010, a retired member reenters covered employment within the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement is deemed invalid. If the member received one or more retirement annuity benefit payments during the invalid retirement, the member shall either repay the payments as a lump sum immediately or the repayments shall be, repay the payments by contractual payments over a period of up to three years, which payments shall include interest at the assumed rate of return, or the repayments shall be repay the payments by an actuarial equivalent reduction in eventual monthly benefits based on the mortality table and scale used to determine an actuarial equivalent, as defined in subdivision 3-12-47(3).

    Section 35. That § 3-12-200 be amended to read:

    3-12-200. If, on or after April 1 March 31, 2010, a retired member reenters covered employment at some time after the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement benefits and continued membership shall be administered pursuant to this section.

    If the retired member's benefits have not been reduced pursuant to § 3-12-106, the member's monthly retirement annuity benefit shall be reduced by fifteen percent and the annual increase shall be eliminated throughout the period that the member reenters covered employment in accord with § 3-12-88. The reduction and elimination shall cease if the member again terminates covered employment. However, the foregoing provisions notwithstanding, the reduction and elimination do not apply if the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reenters covered employment as a Class A member.

    If the retired member's benefits have been reduced pursuant to § 3-12-106, the member's benefits shall be suspended during the period that the member reenters covered employment and the annual increase shall be eliminated during the period that the member reenters covered employment, both in accord with pursuant to § 3-12-111.1. The suspension and elimination shall cease if the member again terminates covered employment.

    Whether the member's retirement benefits are unreduced or have been reduced, contributions

required of the member pursuant to § 3-12-71 shall be deposited by the member's participating unit with the system for the benefit of the member to be transferred to an account within the deferred compensation program established pursuant to chapter 3-13. The contributions shall be governed by § 457 of the Internal Revenue Code. The foregoing notwithstanding However, the contributions required of the member's employer unit pursuant to § 3-12-71 shall be deposited into the member trust fund created by this chapter, but without any with no association with or credit to the member. The member may not earn any additional benefits associated with the period that the member reenters covered employment.

    Section 36. That § 3-12-201 be amended to read:

    3-12-201. A contributing member who becomes disabled and who has acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) since the member's most recent entry into active status and prior to before becoming disabled, or was disabled by accidental means while performing usual duties for an employer, is eligible for disability benefits if the disability is expected to be of long, continued, and indefinite duration of at least one year and the member is disabled on the date the member's contributory service ends. For purposes of this section, a transfer within a participating unit, or a change in employment from one participating unit to another participating unit if there is no break in contributory service, does not constitute a new entry into active status. The provisions of this section apply to any member whose application for disability benefits is received by the system after June 30, 2015.

    Section 37. That § 3-12-202 be amended to read:

    3-12-202. Any member seeking disability benefits pursuant to § 3-12-201 shall submit an application to the administrator executive director. Any information required for a complete application must be received within one year after the application for disability benefits was received. If the required information is not received by the system within one year after the application is received, the member may reapply.

    Any member, who fails to file an application for disability benefits with the administrator executive director within three years after the date on which the member's contributory service ends, forfeits all rights to disability benefits.

    Section 38. That § 3-12-205 be amended to read:

    3-12-205. Upon receipt of an application for disability benefits after June 30, 2015, along with statements from a health care provider and the member's employer, the administrator executive director shall determine whether the member is eligible for disability benefits. The administrator executive director may request the advice of the disability advisory committee with respect to any application. The recommendation of the disability advisory committee is not binding on the administrator executive director. The disability advisory committee or the administrator executive director may require an independent medical examination of the member to be conducted by a disinterested health care provider selected by the disability advisory committee or the administrator executive director to evaluate the member's condition. The disability advisory committee or the administrator executive director may require a functional capacity assessment of the member to be conducted by a licensed professional qualified to administer such assessments, and the an assessment. The assessment may be used to evaluate the member's qualification for benefits. Refusal to undergo an examination or assessment pursuant to this section is cause for denying the application.

    If the administrator executive director determines that the member is not disabled, a notice of the administrator's executive director's determination and the reasons for the determination shall be sent, by certified mail, to the member's last known address.

    Section 39. That § 3-12-206 be amended to read:

    3-12-206. If the administrator executive director determines that the member whose application was received pursuant to § 3-12-205, meets the qualifications to receive disability benefits, a notice of the administrator's executive director's determination shall be sent, by certified mail, to the member's last known address. A member whose application for disability benefits is approved shall receive the benefits beginning with the month following the date on which the member's contributory service terminates. If any member fails to terminate contributory service within one year after receiving notice that the member's application has been approved, the member's application approval expires.

    Section 40. That § 3-12-210 be amended to read:

    3-12-210. A member's disability benefits pursuant to § 3-12-207 terminate if the member is no longer disabled, as certified by a health care provider. Upon receipt of certification the administrator executive director shall determine whether the member meets the qualifications for disability benefits. In making this determination the administrator executive director shall follow the same procedure used in making the initial determination of disability provided in § 3-12-205. A member's disability benefits shall be suspended and subject to termination if the member refuses to undergo an examination or assessment requested by the disability advisory committee or the administrator executive director. If the administrator executive director finds that the member no longer meets the qualifications for disability benefits, the administrator executive director shall notify the member of this finding by certified mail and the payment of disability benefits shall terminate thirty days after receipt of the notice. Such a The finding by the administrator executive director is subject to appeal and review as a contested case.

    Section 41. That § 3-12-214 be amended to read:

    3-12-214. Upon the death of a member receiving disability benefits pursuant to § 3-12-207, who dies prior to normal retirement age, a family benefit shall be paid on behalf of any child of the member. The monthly amount of the family benefit is the amount of the monthly disability benefits the member received prior to before death. The monthly family benefit shall be equally apportioned among any children of the member and shall be paid on behalf of any child to the conservator or custodian of the child, as applicable. However, if the child is eighteen years of age the benefit is payable directly to the child. As any a child becomes ineligible pursuant to subdivision 3-12-47(14), the family benefit shall be reallocated among any remaining eligible children of the deceased member. The family benefit terminates if there are no eligible children of the deceased member pursuant to subdivision 3-12-47(14).

    Section 42. That § 3-12-47.3 be repealed.

    Section 43. That § 3-12-77.2 be repealed.

    Section 44. That § 3-12-120.1 be repealed.

    Section 45. That § 3-12-120.2 be repealed.

    Section 46. That § 3-12-120.3 be repealed.

    Section 47. That § 3-12-139 be repealed.

    Section 48. That § 3-12-140 be repealed.

    Section 49. That § 3-13-50 be amended to read:

    3-13-50. The administrator executive director shall administer the plan. The administrator

executive director may hire additional employees as may be required and shall set the remuneration of such the employees.

    Section 50. That § 3-13-51.1 be amended to read:

    3-13-51.1. Funds held by the fund may be invested by plan participants in such investments as are deemed appropriate A participant may invest in any investment selected by the state investment officer, including, but not limited to, annuity contracts. The state investment officer is authorized to may enter into contracts for investment alternatives and to offer internal investment alternatives, and the plan administrator is authorized to. The executive director or third-party administrator may transfer funds to, from, and among the respective investment alternatives as directed by the participant or as required if the investment alternative is no longer available. The state investment officer shall be held to the standard of conduct of a fiduciary and shall carry out all functions solely in the interests of the participants and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing such the duties as required by law.

    Section 51. That § 3-13-51.2 be amended to read:

    3-13-51.2. The administrator executive director shall execute any agreements as are necessary to carry out the provisions of this chapter, except such agreements as are executed by the state investment officer pursuant to § 3-13-51.1. Any contract for an investment alternative in effect on July 1, 2000, is hereby transferred by operation of law to the state investment officer as of July 1, 2000.

    Section 52. That § 3-13-52 be amended to read:

    3-13-52. Neither the plan nor any participating employer may have any liability to any participant for losses arising out of any decrease in the value of any investments held by the plan. The liability of the plan to any participant is limited to the value of the participant's account on the date the account is made available to the participant pursuant to the provisions of the plan. In no event may any member of the board, the administrator executive director or any member of the administrator's executive director's staff have any liability for any action taken with respect to the plan unless such action be taken in bad faith.

    Section 53. That § 3-13-53 be amended to read:

    3-13-53. The South Dakota deferred compensation fund is hereby established. All compensation deferred pursuant to this chapter shall be deposited in such the fund. Expenditures from the fund shall be paid on warrants drawn by the state auditor on vouchers approved by the administrator executive director. All administrative expenses shall be budgeted and expended pursuant to chapters 4-7, 4-8, 4-8A, and 4-8B. In accord with § 457(g) of the Internal Revenue Code, all money in the fund and all property and rights held by the fund, at all times until made available to a participant or the participant's beneficiary, shall be held in trust for the exclusive benefit of the participant. All compensation deferred pursuant to this chapter shall be transferred not later than fifteen business days after the end of the month in which the compensation otherwise would have been paid to the participant.

    Section 54. That § 3-13A-2 be amended to read:

    3-13A-2. The definitions contained in § 3-12-47 chapter 3-12 apply to this chapter unless otherwise so specified. In addition, the following terms used in this chapter mean:

            (1)    "Account," the record for each participant reflecting the amount of the participant's special pay transmitted to the fund, allocated investment gains and losses thereon, and administrative charges against those amounts;

            (2)    "Accounting date," the date on which an investment is valued and the total investment return is allocated to a participant's account;

            (3)    "Administrator," the administrator of the South Dakota Retirement System as provided in § 3-12-55;

            (4)    "Board," the South Dakota Retirement System Board of Trustees as established under § 3-12-48;

            (4)    "Executive director," the executive director of the South Dakota Retirement System as provided in § 3-12-55;

            (5)    Deleted by SL 2013, ch 20, § 19;

            (6)    "Fund," the South Dakota special pay fund established pursuant to § 3-13A-3;

            (7)(6)    "Normal retirement date," the date a participant may retire pursuant to the provisions of chapter 3-12 without reduced benefits;

            (8)(7)    "Participant," a terminated employee of a participating unit who has reached the calendar month prior to before the month of the employee's fifty-fifth birthday and who received six hundred dollars or more in special pay;

            (9)(8)    "Participating unit," the State of South Dakota, the South Dakota Board of Regents, or any other political subdivision of the state that participates in the program;

            (9A)(9)    "Plan year," a calendar year ending on December thirty-first;

            (10)    "Program," the South Dakota Special Pay Retirement Program created pursuant to §§ 3-13A-1 to 3-13A-25, inclusive;

            (11)    "Special pay," compensation other than regular salary or wages granted to a participant and transferred in a lump-sum to the fund at the termination of the participant's employment;

            (12)    "Third-party administrator," a person who, pursuant to contract, handles administration of the program on behalf of the board and the administrator executive director; and

            (13)    "Vendor," a person or organization selected by the state investment officer to provide investment or insurance products to the program.

    Section 55. That § 3-13A-3 be amended to read:

    3-13A-3. The South Dakota special pay fund is hereby established. All compensation transmitted to the fund pursuant to §§ 3-13A-1 to 3-13A-25, inclusive, shall be deposited in the fund. Expenditures from the fund shall be paid on warrants drawn by the state auditor and supported by vouchers approved by the administrator executive director. All administrative expenses shall be budgeted and expended pursuant to chapters 4-7, 4-8, 4-8A, and 4-8B. All money in the fund and all property and rights held by the fund shall be held in trust for the exclusive benefit of the participants at all times until made available to a participant or the participant's beneficiary. All benefits payable under this program shall be paid and provided for solely from the fund and a participating unit assumes no liability or responsibility therefor. Any trust under the program shall be established pursuant to a written agreement that constitutes a valid trust under the law of South Dakota.

    Section 56. That § 3-13A-9 be amended to read:



    3-13A-9. Moneys held by the fund may be invested by program participants in such investments as are deemed appropriate A plan participant may invest in any investment selected by the state investment officer, including annuity contracts. The state investment officer may enter into contracts for investment alternatives and to offer internal investment alternatives. The program administrator executive director or third-party administrator may transfer funds to, from, and among the respective investment alternatives as directed by the participant or as required if the investment alternative is no longer available.

    Section 57. That § 3-13A-11 be amended to read:

    3-13A-11. Each participant may elect to have the participant's funds invested in one or more of the investment alternatives selected by the state investment officer pursuant to § 3-13A-9. Subject to any limitations imposed by the administrator executive director, a vendor, or a third-party administrator, a participant may elect to transfer any portion of the account balance from one offered investment alternative to another at any time, if notice is given to the administrator executive director or the third-party administrator. Any costs associated with such a transfer shall be borne by the participant and shall be deducted from the participant's account. If, due to a payroll error, a participant's deferral is deposited in an investment alternative other than the one selected by the participant, the administrator executive director or third-party administrator may correct the error by transferring the participant's deferral to the proper investment alternative, subject to any limitations which may be imposed by the vendor. No retroactive adjustment may be made.

    Section 58. That § 3-13A-12 be amended to read:

    3-13A-12. If a contract between the state investment officer and a vendor is terminated and a participant fails to notify the administrator executive director or third-party administrator of the participant's new investment selection before the contract terminates, the administrator executive director or third-party administrator shall transfer that participant's account to the investment alternative designated by the state investment officer.

    Section 59. That § 3-13A-17 be amended to read:

    3-13A-17. The administrator executive director shall administer the program, shall have all powers necessary to accomplish that purpose, and shall determine all questions arising under or in connection with the program. The administrator executive director may hire additional employees as may be required and shall set the remuneration of such the employees. In addition, the administrator executive director, with the approval of the board, may contract with vendors for third-party administration of various duties under the program as the administrator executive director sees fit. The administrator executive director shall execute any agreements as are necessary to carry out the provisions of §§ 3-13A-1 to 3-13A-25, inclusive, except such any agreements as are executed by the state investment officer pursuant to § 3-13A-9.

    Section 60. That § 3-13A-22 be amended to read:

    3-13A-22. A participant is entitled to receive a distribution from the participant's account upon written application to the administrator executive director or third-party administrator. The participant may elect, on forms prescribed by the administrator executive director or third-party administrator, the time at which distributions under the program are to commence by designating the month and year during which the first distribution is to be made. The participant may elect to receive the participant's distribution in any of the following forms:

            (1)    A lump sum;

            (2)    Equal monthly installments over a fixed period; or

            (3)    Any other form offered by the administrator executive director or a third-party

administrator.

    The application and election shall be made prior to the time any amounts become payable. A participant or a beneficiary who has chosen a payment form may change that payment option, if no payment has yet been made, and subject to any administrative restrictions and charges established by the board.

    Section 61. That § 3-13A-25 be amended to read:

    3-13A-25. Neither the program nor any participating unit is liable to any participant for losses arising out of any decrease in the value of any investments held under the program. The liability of the program to any participant is limited to the value of the participant's account on the date the participant chooses to begin payment pursuant to the provisions of the program. In no event may any member of the board, the administrator executive director, or any member of the administrator's executive director's staff have any liability for any action taken with respect to the program unless such the action has been taken in bad faith.

    Section 62. That ARSD 62:01:01:01 be amended to read:

    62:01:01:01...Definition of terms. Terms defined in SDCL 3-12-47 SDCL chapters 3-12 and 3-13A have the same meaning when used in this article. In addition, terms used in this article mean:

    (1)  "Disability advisory committee," a committee composed of the secretary of the Department of Human Services or a designee, a lawyer, and a physician, the latter two members both appointed by the administrator executive director;

    (2)  "Represented group," a group entitled to elect one or more trustees pursuant to SDCL 3-12-48 and 3-12-49. The group to which a member belongs is determined from the records of the system;

    (3).."Employment," for purposes of SDCL 3-12-103.1, includes engagement of services by an employer who is not a participating unit and self-employment;

    (4).."Class B public safety member," an individual who is a class Class B member other than a justice, judge, or magistrate judge.

    Section 63. That ARSD 62:01:02:01 be amended to read:

    62:01:02:01...Determination of class A or class B Class A or Class B member. A member is a class A Class A member until proof is supplied to the administrator executive director that a member is a class B Class B member. The administrator executive director shall change the records when a change of duties requires a change of class.

    Section 64. That ARSD 62:01:02:11 be amended to read:

    62:01:02:11...Reentry into system for purposes of redeposit _ Limit on redeposit. For purposes of SDCL 3-12-80, a person reenters the system only if the person previously has terminated employment as defined in subdivision 3-12-47(70) or has ceased active membership by shifting to less than permanent full-time status; the person has withdrawn the person's accumulated contributions pursuant to SDCL 3-12-76 or SDCL 3-12-76.1; and it the reentry is the person's initial return to active status after a termination or shift, accompanied by a withdrawal. The redeposit may apply only to that withdrawal.

    Section 65. That ARSD 62:01:03:02 be amended to read:

    62:01:03:02...Determination of eligibility for retirement allowance benefit. Upon receipt of an application for a retirement allowance benefit, the administrator executive director shall determine

whether or not the applicant is eligible for the allowance benefit.

    Section 66. That ARSD 62:01:03:02.01 be amended to read:

    62:01:03:02.01...Certification when retired member becomes reemployed _ Penalty. If a retired member becomes reemployed by the same employer unit that the member retired from within one year after the member's retirement, the system may require both the member and the employer unit to certify that:

    (1)..The member's termination was a complete severance of employment as outlined in SDCL subdivision 3-12-47(70) and in SDCL 3-12-81.1;

    (2)..All standard hiring and employment procedures of the employer unit were followed in the reemployment process; and

    (3)..No prior agreement to reemploy the member, either overt or covert, existed between the member and the employer unit or any officer of the employer unit.

    An employer unit's chief executive officer or the officer's agent or the chair of the employer's governing commission or board shall provide the certification on behalf of the employer unit. The system shall provide forms for the member's and the employer unit's certifications. An intentionally false certification provides grounds for legal recourse pursuant to SDCL 22-29-9.1.

    Section 67. That ARSD 62:01:04:03 be amended to read:

    62:01:04:03...Disability determination _ Disability advisory committee _ Medical examination. Upon receipt of an application for a disability allowance benefit, with supporting medical evidence, the administrator executive director shall determine whether the applicant is eligible for a disability allowance benefit. The administrator executive director may request the advice of the disability advisory committee with respect to any application. The recommendation of the disability advisory committee is not binding on the administrator executive director. The disability advisory committee or the administrator executive director may require an independent medical examination of an applicant to be conducted by a licensed, disinterested physician selected by the disability advisory committee or the administrator executive director to evaluate the applicant's condition. The disability advisory committee or the administrator executive director may require a functional capacity assessment of the applicant to be conducted by a licensed professional qualified to administer such assessments, and the assessment may be used to evaluate the applicant's qualification for benefits. If the administrator executive director determines that the member is not disabled, a notice of the administrator's executive director's determination and the reasons for it shall be sent, by certified mail, to the applicant's last known address.

    Section 68. That ARSD 62:01:04:06 be amended to read:

    62:01:04:06...Medical examination of member receiving disability allowance benefit _ Refusal. The administrator executive director may require a member receiving a disability allowance benefit to undergo a medical examination at any time at the expense of the system. If the member refuses to submit to a medical examination within 30 days of receipt of written notice from the administrator executive director, the one-year period outlined in SDCL 3-12-103.1 begins to run and continues until the member withdraws the refusal. If the refusal continues for one year, the member forfeits all rights to the disability allowance benefit. If the member agrees to submit to a medical examination, upon completion of the examination by a physician selected by the administrator executive director, the physician shall provide to the administrator executive director a complete report on the condition of the member. If the administrator executive director finds that the member is no longer disabled, the administrator executive director shall so notify the member by certified mail and the payment of the disability allowance benefit shall terminate pursuant to SDCL 3-12-103.1. Such a A finding by the administrator executive director is subject to appeal and review as a contested case.

    Section 69. That ARSD 62:01:05:03 be amended to read:

    62:01:05:03...Procedure for nomination _ Filing of member petition. A justice, judge, or magistrate judge who is a candidate for nomination for trustee shall file one or more petitions containing, in all, at least five valid signatures of members of the candidate's represented member group. Each other member candidate for nomination for trustee shall file one or more petitions containing, in all, at least 20 valid signatures of members of the candidate's represented group. In addition to the required signatures, each petition shall contain the name, address, and last four digits of the social security number of the member candidate and a declaration of candidacy signed by the candidate. Each nominating petition must be in the possession of the office of the administrator no later than executive director by 5:00 p.m. on February 23.

    Section 70. That ARSD 62:01:05:03.01 be amended to read:

    62:01:05:03.01...Procedure for nomination _ Filing of employer petition. Each employer candidate for nomination for trustee shall file one or more petitions containing, in all, at least 20 valid signatures of members of the candidate's represented group. In addition to the required signatures, each petition shall contain the name, address, and represented employer group of the candidate and a declaration of candidacy signed by the candidate. Each nominating petition must be in the possession of the office of the administrator no later than executive director by 5:00 p.m. on February 23.

    Section 71. That ARSD 62:01:05:06 be amended to read:

    62:01:05:06...Preparation of ballots. The administrator executive director shall prepare separate ballots for each represented group entitled to vote in the election. Each ballot shall contain the appropriate designation of the represented group and the names, in alphabetical order, and the addresses of the candidates. No ballot shall be prepared if there are less than two candidates who have filed valid nominating petitions to represent a represented group.

    Section 72. That ARSD 62:01:05:07 be amended to read:

    62:01:05:07...Mailing of ballots. The administrator executive director shall mail no later than April 30 before May 1 the applicable ballot to each member entitled to vote in the election and to each employer entitled to vote in the election.

    Section 73. That ARSD 62:01:05:08 be amended to read:

    62:01:05:08...Validity of member ballot. To be valid, a member ballot must be in the possession of the office of the administrator no later than executive director by 5:00 p.m. on May 25. The ballot may be returned enclosed in an envelope.

    Section 74. That ARSD 62:01:05:09 be amended to read:

    62:01:05:09...Validity of employer ballot. To be valid, an employer ballot must be signed by the presiding officer of the governing board or commission of the employer and in the possession of the office of the administrator no later than executive director by 5:00 p.m. on May 25. The ballot may be returned enclosed in an envelope.

    Section 75. That ARSD 62:01:05:10 be amended to read:

    62:01:05:10...Issuance of new ballot. The administrator executive director may issue a second ballot to a voter only with approval of the internal auditing manager, who has sole control over all replacement ballots. The internal auditing manager may approve the issuance of a replacement ballot only upon receipt of an affidavit from the member or employer eligible to vote that certifies that an original ballot was not received or the original ballot was lost or misplaced and not previously

returned to the system.

    Section 76. That ARSD 62:01:05:13 be amended to read:

    62:01:05:13...Results of election. The board shall confirm its count or the canvassers' report and shall certify the results of the election at the first board meeting after ballot counting pursuant to §.62:01:05:12 is completed. However, the administrator executive director shall notify all the candidates and the members of the board of the tentative election results within three business days after the ballot counting is completed. If no election is required, the board shall declare the nominee elected.

    Section 77. That ARSD 62:01:05:14 be amended to read:

    62:01:05:14...Contest of election. An election is considered valid unless a notice of contest is filed with the administrator executive director within 15 days after the election results are announced. If such a notice of contest is filed, the board shall hold a hearing pursuant to SDCL chapter 1-26 to determine the validity of the election.

    Section 78. That ARSD 62:01:05:15 be amended to read:

    62:01:05:15...Storage of ballots. The administrator executive director shall keep all ballots cast in a safe place in the office of the administrator executive director before the ballots are counted. The administrator executive director shall hold the counted ballots in the office of the administrator executive director for at least 45 days after the election results are announced or until a contest is finally decided.

    Section 79. That ARSD 62:01:06:05 be amended to read:

    62:01:06:05...Finality of decision if the administrator executive director does not act _ Time limit. If the administrator executive director does not accept, reject, or modify the hearing examiner's proposed findings of fact, conclusions of law, and decision within 30 days after receiving them, the proposals become the final agency decision unless a party to the proceedings files a petition requesting formal administrative agency review of the proposals.

    Section 80. That ARSD 62:01:06:06 be amended to read:

    62:01:06:06...Written rationale for rejection or modification of a decision or findings _ Time limit. If the administrator executive director rejects or modifies the hearing examiner's proposed findings of fact, conclusions of law, or decision, the administrator executive director shall state the rationale for the rejection or modification in writing within 30 days and shall date the written document and provide it to the interested parties.

    Section 81. That ARSD 62:01:06:07 be amended to read:

    62:01:06:07...Declaratory rulings _ Time limit _ Hearing examiners. A petition for a declaratory ruling pursuant to SDCL 1-26-15 shall be heard in accordance with the procedures in SDCL chapter 1-26. The petition shall be filed within 30 days of the event giving rise to the petition. The administrator executive director may utilize the services of a hearing examiner to hear the arguments of interested parties and to issue a recommended ruling to the administrator executive director.

    Section 82. That ARSD 62:01:07:01 be amended to read:

    62:01:07:01...Secretary to board _ Filing. The administrator executive director shall act as secretary to the board. Any document required to be filed with the board shall be filed with the administrator executive director.

    Section 83. That ARSD 62:01:07:03 be amended to read:

    62:01:07:03...Waiver of privilege. A filing of a notice of appeal of an administrator's executive director's decision by a member for a hearing to be conducted by a hearing examiner shall be, for the purpose of the hearing and any subsequent appeal, a waiver by the member of any privilege against disclosure of information contained in the files of the system relevant to the subject matter of the hearing.

    Section 84. That ARSD 62:01:07:05 be amended to read:

    62:01:07:05...Procedure for filling a vacancy on the board. The administrator executive director shall be notified of a vacancy on the board by the vacating board member, by the member's participating unit's governing body, by the member's employer, or by any other board member. Upon the administrator's executive director's receipt of notice, the procedure to fill the vacancy shall be as follows:

    (1)..The administrator executive director shall notify all members of the board of the vacancy;

    (2)..If circumstances permit, the administrator executive director shall ask the incumbent to recommend a replacement to serve in the incumbent's stead;

    (3)..If the vacancy is for a trustee to serve on behalf of an employer represented group, the administrator executive director shall notify the governing body of each participating unit affected by the vacancy of the vacancy and request the governing body's input in seeking a qualified candidate. The administrator executive director shall solicit résumés of qualified individuals persons from governing bodies and interested individuals persons. The résumés shall be submitted to the administrator executive director. If a state-wide association exists that is made up of members of the employer represented group, the administrator executive director shall notify the association of the vacancy and request the association's input in seeking a qualified candidate. If the vacancy is for a trustee to serve on behalf of an employee represented group, the administrator executive director shall notify all authorized agents for the group affected by the vacancy of the vacancy and request that all employees affected by the vacancy be advised of the vacancy. Any interested member of the represented group may submit his or her résumé to the administrator executive director. If a state-wide association exists that is made up of members of the employee represented group, the administrator executive director shall notify the association of the vacancy and request the association's input in seeking a qualified candidate;

    (4)..The administrator executive director shall provide to each board member a copy of each résumé received;

    (5)..At its next regularly-scheduled meeting, the board, by secret ballot, shall select a replacement trustee from among those individuals persons who submitted résumés; and

    (6)..The replacement trustee shall fill the vacancy on the board immediately and shall serve until the regular term of the vacancy has been completed and the position is filled for a new term through a normal election pursuant to SDCL 3-12-49 and chapter 62:01:05.

    The provisions of this section notwithstanding, no vacant position may be filled unless the vacancy occurs at least eight months prior to when a normal election for a regular term will be completed to fill that trustee position pursuant to SDCL 3-12-49 and chapter 62:01:05.

    Section 85. That ARSD 62:01:07:07 be amended to read:

    62:01:07:07...Prospective nature of qualified domestic relations orders. The provisions of a qualified domestic relations order shall be prospective from the date of the order. Any division of benefits paid prior to the date of the order, service of the order upon the system, or qualification of

the order by the system, whichever is later, shall be the responsibility of the parties to the order. However, the administrator executive director may agree to adjust future payments to remedy an error in prior payments if the error in prior payments involved the system.

    Section 86. That ARSD 62:01:07:12 be amended to read:

    62:01:07:12...Member repayment of overpayments _ Options _ Interest _ Delayed repayment _ Failure by member to select an option _ System notice and member understanding. A member who must required to repay an overpayment of benefits pursuant to SDCL 3-12-114 may choose to make the repayment by an actuarial equivalent reduction in monthly benefits based on the mortality table and scale used to determine an actuarial equivalent as defined in SDCL subdivision 3-12-47(3). If the member does not have a spouse, the reduction shall continue for the member's lifetime. If the member has a spouse, the reduction shall reduce both the member's monthly benefits and the surviving spouse's monthly benefits and shall continue for both the member's and the surviving spouse's lifetimes.

    In the alternative, a member who must required to repay an overpayment of benefits pursuant to SDCL 3-12-114 may choose to make immediate repayment in a lump-sum from other funds or may choose to make repayment by monthly benefit reductions over a period not to exceed three years. Repayment shall include interest at the assumed rate of return as defined in SDCL subdivision 3-12-47(9A), unless the overpayment is due to a system error, in which case the administrator executive director may absolve any interest accrual.

    If a member's repayment is delayed for more than three months, interest on the overpayment amount shall accrue during the period of delay at the system's assumed rate of return, unless the overpayment is due to a system error, in which case the administrator executive director may absolve any interest accrual.

    If a member who must required to repay an overpayment does not choose a repayment option within two months after being given notice of the overpayment, the member is deemed to have chosen to make repayment by an actuarial equivalent reduction in monthly benefits as outlined in this section. If repayment is pursuant to an actuarial equivalent reduction by either the member's choice or the member's failure to choose a repayment option, system staff shall inform the member that the reduction is unlikely to result in repayment of the exact amount of the overpayment, plus interest if appropriate, and the member is presumed to so understand.

    Section 87. That ARSD 62:01:07:13 be amended to read:

    62:01:07:13...Administration of additional survivor protection contributions and coverage. A member enrolled in the additional survivor protection program pursuant to SDCL 3-12-104 prior to before July 1, 2010, may maintain that coverage so long as there is no break in the member's contributions or employment. Any of the following constitutes a break in a member's contributions or employment:

    (1)..Voluntary or involuntary discontinuance of contributions;

    (2)..Required discontinuance pursuant to SDCL 3-12-104;

    (3)..Termination of covered employment as defined in subdivision 3-12-47(70), even if the member returns to covered employment with the same employer or a different employer;

    (4)..Leave of absence, except for military leave of absence; or

    (5)..A break in service due to a series of two or more contracts for specified months of service.

    A military leave of absence is not a break in contributions or employment. A transfer within an

employer unit or from one employer to another without a termination is not a break in contributions or employment.

    Section 88. That subdivision (3) of ARSD 62:03:01:01 be amended to read:

    (3).."Administrator," the administrator "Executive director," the executive director of the South Dakota Retirement System as provided in SDCL 3-12-55;

    Section 89. That ARSD 62:03:02:03 be amended to read:

    62:03:02:03...Enrollment of participants. An eligible employee may become a participant by signing a participation agreement. Participation becomes effective on the first day of the month following the date on which the participation agreement is signed. If a new employee signs and files a participation agreement on the employee's date of hire, that agreement may become effective immediately. The plan may not accept any deferrals unless a signed participation agreement is on file in the office of the administrator executive director or the third-party administrator.

    Section 90. That ARSD 62:03:02:04 be amended to read:

    62:03:02:04...Participation agreement. The administrator executive director shall establish a form of participation agreement which includes the name, address, social security number, and birthdate of the participant and the participant's beneficiary; the name and address of the participant's employer; the participant's selection of investment alternatives; and any other information necessary for the administration of the plan.

    Section 91. That ARSD 62:03:05:06 be amended to read:

    62:03:05:06...Unforeseeable emergency. If a participant suffers an unforeseeable emergency, the participant may request an immediate distribution of all or part of the participant's deferrals. If the administrator executive director approves the request, the distribution shall be made to the extent necessary to satisfy the need, including payment of federal income tax withholding, if necessary. If the administrator executive director denies the request, the participant may appeal the denial pursuant to the appeal procedures outlined in SDCL 3-12-57.1 and in ARSD chapter 62:01:06 by giving notice of intention to appeal within 30 days after the date of the administrator's executive director's written notice of denial. The appeal shall be conducted in accordance with SDCL chapter 1-26. No distribution may be made to the extent that the unforeseeable emergency may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the participant's assets to the extent that the liquidation does not cause severe financial hardship, or by discontinuation of deferrals under the plan. The need to send a participant's child to college, divorce proceedings, or the desire to purchase a home are not considered unforeseeable emergencies. Any amount that is distributed on account of an unforeseeable emergency is not an eligible rollover distribution and the participant may not elect to have any portion of the distribution paid directly to an eligible retirement plan.

    The provisions of this section do not apply if a distribution may be made pursuant to §.62:03:05:07.

    Section 92. That ARSD 62:03:05:07 be amended to read:

    62:03:05:07...In-service distributions of small amounts _ Calculation _ Handling of certain involuntary distributions. Any other provision of this chapter notwithstanding, a participant may receive an in-service distribution from the plan, or the plan administrator executive director may render an involuntary distribution to the participant, under the following conditions:

    (1)..The participant is inactive in the plan and has made no deferrals for at least two years prior to the distribution;



    (2)..The total distribution _ whether elective or involuntary or both _ does not exceed $5,000; and

    (3)..The participant previously has not received either an elective or an involuntary distribution under the plan.

    If implementing subdivision (2) of this section, the value of a participant's nonforfeitable account balance shall be determined without regard to that portion of the account balance that is attributable to rollover contributions (, and earning allocable thereto), within the meaning of §§.402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e) of the code Internal Revenue Code.

    If an involuntary distribution is in excess of $1,000 and if the participant does not elect to have the distribution transferred to an eligible retirement plan pursuant to §.401(a)(31) of the code Internal Revenue Code or does not elect to receive the distribution directly, the distribution shall be transferred to an individual retirement plan of a designated trustee or issuer. The plan administrator executive director shall notify the participant in writing that the distribution may be transferred to another individual retirement plan.

     Signed February 18, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\031.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\032.wpd
CHAPTER 32

(SB 13)

South Dakota Retirement System, new system created.


        ENTITLED, An Act to establish a new retirement benefit structure for certain public employees who are members of the South Dakota Retirement System.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, accumulated contributions, means the sum of:

            (1)    All contributions made by the member;

            (2)    Eighty-five percent of the contributions made by the member's employer if the member has three years or more of contributory service or noncontributory service, or fifty percent of the contributions made by the employer if the member has less than three years of contributory service or noncontributory service;

            (3)    Member credited service purchases pursuant to §§ 3-12-83, 3-12-84, and 3-12-84.2; and

            (4)    The effective rate of interest on the sum of subdivisions (1), (2), and (3).

    Section 2. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, credited service, means the sum of the following:

            (1)    Years of service, or fractions thereof, for which member contributions were made to the system;

            (2)    Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;

            (3)    Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions; and

            (4)    Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12-86.

    Section 3. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twenty consecutive calendar quarters during the member's last forty calendar quarters of membership in the system. If the compensation received in the last calendar quarter considered exceeds one hundred five percent of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters exceeds one hundred five percent of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess shall be excluded in the computation of final average compensation.

    For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of twenty consecutive calendar quarters.

    For any member who has less than twenty but more than four calendar quarters of membership in the system, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.

    Section 4. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, improvement factor, means the annual increase in the amount of the benefit provided on July first, compounded annually. However, no annual increase may be provided unless the member has received benefit payments for at least the consecutive, twelve-month period before July first. The annual increase shall be established by the board for each fiscal year, based on the fair value funded ratio of the system and the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the previous year in which the consumer price index was the highest), as follows:

            (1)    If the system's fair value funded ratio is less than eighty percent, the improvement factor shall be equal to the increase in the consumer price index, but no less than one percent and no greater than two and one-tenth percent;

            (2)    If the system's fair value funded ratio is eighty percent or greater but less than ninety percent, the improvement factor shall be the increase in the consumer price index, but no less than one percent and no greater than two and four-tenths percent;

            (3)    If the system's fair value funded ratio is ninety percent or greater but less than one hundred percent, the improvement factor shall be the increase in the consumer price index, but no less than one percent and no greater than two and eight-tenths percent; or

            (4)    If the system's fair value funded ratio is one hundred percent or greater, the improvement factor shall be the increase in the consumer price index, but no less than one percent and no greater than three and one-tenth percent.

    Section 5. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, normal retirement age is sixty-seven for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-seven for other Class B credited service. The Legislature may increase the normal retirement age for some or all then-contributing members if life expectancy at retirement continues to increase, as substantiated by a periodic actuarial experience analysis that takes into account census data of all active members, vested terminated members, and retired members as well as beneficiaries of the system.

    Section 6. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class A credited service, equal to one and eight-tenths percent of final average compensation for each year of Class A credited service.

    Section 7. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class B credited service other than as a justice, judge, or magistrate judge, equal to two percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge.

    Section 8. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, equal to three and three hundred thirty-three thousands percent of final average compensation for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge and two percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge in excess of fifteen years.

    Section 9. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Any generational member applying for a retirement benefit shall elect one of the following monthly benefit options:

            (1)    A single life benefit that provides a monthly benefit to the member for as long as the member lives and ceases upon the death of the member;

            (2)    A sixty percent joint and survivor benefit that provides a reduced lifetime monthly benefit to the member, and upon the member's death sixty percent of the reduced benefit continues to the surviving spouse until the death of the surviving spouse; or

            (3)    A one hundred percent joint and survivor benefit that provides a reduced lifetime monthly benefit to the member, and upon the member's death one hundred percent of the reduced benefit continues to the surviving spouse until the death of the surviving spouse.

    The benefits payable to the member and the surviving spouse pursuant to a joint and survivor benefit are based on the ages of the member and the spouse and are the actuarial equivalent of a single life benefit. The monthly benefit of a member electing the joint and survivor benefit is reduced in order to provide for a continuing benefit for the surviving spouse after the member's death. The last payment of the member's benefit is for the month in which the member's death occurs, and any surviving spouse benefit is effective from the first day of the month following the member's death. The benefits payable pursuant to this section shall be paid in accordance with § 401(a)(9) of the Internal Revenue Code.

    Section 10. That chapter 3-12 be amended by adding a NEW SECTION to read:



    If more than one monthly retirement benefit payment has been made to the generational member, the benefit election made by a member is irrevocable and surviving spouse benefits, if elected, may only be paid to the person who is the spouse both at the time of the election and at the time of the member's death and only if the spouse survives the member. The benefit election may not be rescinded in the event of a subsequent divorce or the subsequent death of the spouse.

    Section 11. That chapter 3-12 be amended by adding a NEW SECTION to read:

    No retirement benefit may be paid unless the system has received a completed application for a retirement benefit, including the benefit option elected. The application shall be signed by both the generational member and the member's spouse, if applicable, and each signature shall be witnessed by a representative of the system or notarized.

    Section 12. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Unless a generational member's required beginning date for retirement occurs first, the retirement benefit of a generational member is effective in accordance with whichever of the following is last:

            (1)    The first day of the month following the date on which the member's contributory service terminated;

            (2)    The first day of the month following an intervening complete calendar month after the date on which the member's written application for retirement benefits is received by the system; or

            (3)    The first day of the month specified in the member's application for retirement.

    The last payment of the member's benefit is for the month in which the member's death occurs.

    Section 13. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Any generational member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no member may receive any retroactive benefits for any period of time before the first day of the month following the date the member's contributory service terminated.

    Section 14. That chapter 3-12 be amended by adding a NEW SECTION to read:

    The disability benefit approved pursuant to § 3-12-206 is the greater of the following calculations:

            (1)    Twenty-five percent of the generational member's final average compensation at the date of disability; or

            (2)    The generational member's unreduced accrued retirement benefit at the date of disability.

    The disability benefit shall be paid in monthly installments. The disability benefit of a generational member shall terminate upon attaining normal retirement age, or if the member commences a disability benefit within five years of normal retirement age, after receiving the disability benefit for five years, and thereafter the member shall receive a retirement benefit. In order to start the retirement benefit, the member shall submit a completed retirement application that includes the benefit option elected by the member. The single life benefit is equal to the amount the member received as a disability benefit.

    Section 15. That chapter 3-12 be amended by adding a NEW SECTION to read:


    Any vested generational member may elect to start the retirement benefit in the ten years preceding the member's normal retirement age. However, no retirement benefit may be paid unless the member submits a completed retirement application to the system that includes the benefit option elected by the member. The normal retirement benefit shall be reduced by five percent for each full year and prorated for each additional full month between the date the early retirement benefit commences and the date the member attains normal retirement age.

    Section 16. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon the death of a generational member retiree who elected either a sixty percent or one hundred percent joint and survivor benefit, the surviving spouse is eligible to receive a surviving spouse benefit. The amount of the surviving spouse benefit is based on the election made upon the retirement of the member and is payable on a monthly basis to the surviving spouse for the life of the spouse.

    Section 17. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon the death of a generational member who was vested or died while performing usual duties for the employer and who has reached normal retirement age but has not yet begun a retirement benefit, a surviving spouse is eligible to receive a surviving spouse benefit. The surviving spouse benefit is equal to sixty percent of the actuarially reduced amount the member would have received if the member retired on the date of death and elected the sixty percent joint and survivor benefit. The annual benefit shall be divided into monthly payments and is payable for the life of the surviving spouse. The payments are effective the first day of the month following the member's death.

    Section 18. That chapter 3-12 be amended by adding a NEW SECTION to read:

    If no family benefit is being paid pursuant to § 3-12-95.4, a surviving spouse of a contributing generational member who had acquired at least three years of contributory service or noncontributory service or died while performing usual duties for the employer or died while receiving a disability benefit, shall, upon attaining the age sixty-seven, receive a surviving spouse benefit as follows:

            (1)    If a family benefit had been paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the improvement factor from the date the last family benefit was paid; or

            (2)    If a family benefit had not been paid, sixty percent of the amount calculated pursuant to subsection (a) or (b), whichever is greater, increased by the improvement factor from the date of the member's death:

            (a)    Twenty-five percent of the member's final average compensation at the time of the member's death; or

            (b)    The member's unreduced accrued retirement benefit at the time of the member's death.

    The surviving spouse benefit shall be paid in monthly installments for the life of the surviving spouse.

    Section 19. That chapter 3-12 be amended by adding a NEW SECTION to read:

    A generational member's spouse who is eligible to receive a surviving spouse benefit at age sixty-seven may elect to start the benefit in the ten years preceding the spouse attaining the age of sixty-seven. The early surviving spouse benefit, payable for the life of the surviving spouse, is the surviving spouse benefit reduced by five percent for each full year and prorated for each additional full month between the date the early surviving spouse benefit commences and the date the surviving

spouse attains the age of sixty-seven.

    Section 20. That chapter 3-12 be amended by adding a NEW SECTION to read:

    If a retired generational member reenters covered employment at some time after the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement benefits and continued membership shall be administered pursuant to this section.

    If the retired member's benefits have not been reduced, the member's monthly retirement benefit shall be reduced by fifteen percent and the annual increase shall be eliminated throughout the period that the member reenters covered employment. The reduction and elimination shall cease if the member again terminates covered employment. However, the reduction and elimination do not apply if the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reenters covered employment as a Class A member.

    If the retired member's benefits have been reduced, the member's benefits shall be suspended during the period that the member reenters covered employment and the annual increase shall be eliminated during the period that the member reenters covered employment. The suspension and elimination shall cease if the member again terminates covered employment.

    Whether the member's retirement benefits are unreduced or reduced, contributions required of the member pursuant to § 3-12-71 shall be deposited by the member's participating unit with the system for the benefit of the member to be transferred to an account within the deferred compensation plan established pursuant to chapter 3-13. The contributions shall be governed by § 457 of the Internal Revenue Code. However, the contributions required of the member's employer unit pursuant to § 3-12-71 shall be deposited into the fund created by this chapter, but with no association or credit to the member. The member may not earn any additional benefits associated with the period that the member reenters covered employment.

    Section 21. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Each generational member shall have a variable retirement account, which consists of variable retirement contributions and the credited investment return. The investment return shall be credited annually as of June thirtieth for all generational members with a variable retirement account on that date. The credited investment return is the South Dakota Investment Council's reported money-weighted investment return of the system, net of fees, for the completed fiscal year. For any account distributed during the fiscal year, the estimated investment return shall be credited to the end of the month before the date on which the retirement benefit is paid or the disability benefit is paid or the death occurred, as applicable. Any variable retirement contributions made during the fiscal year shall receive one-half year's credited investment return.

    Section 22. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Each year the board shall establish the variable retirement contribution for the following fiscal year based on the results of the most current annual actuarial valuation. The variable retirement contribution for any year may be adjusted from zero to one and one-half percent of each contributing generational member's compensation and shall be allocated to each generational member's variable retirement account. The variable retirement contribution for the fiscal year beginning July 1, 2017, shall be one and one-half percent of each contributing member's compensation.

    Section 23. That chapter 3-12 be amended by adding a NEW SECTION to read:

    The variable retirement account is payable at the retirement, disability, or death of the generational member. The variable retirement account is payable to the generational member when the member commences a retirement benefit or a disability benefit or to the generational member's eligible child, eligible spouse, or beneficiary upon the death of the member. The variable retirement

account is not payable to any member who withdraws his or her accumulated contributions from the system. For the purpose of paying a distribution, the variable retirement account is the amount in the member's variable retirement account or the total of the variable retirement contributions made on behalf of the member, whichever is greater.

    The variable retirement account may be paid in a lump sum, rolled over to the South Dakota deferred compensation plan, rolled over to another eligible plan, or used to purchase a supplemental pension benefit. However, the purchase of a supplemental pension benefit is only available upon the member's retirement.

    Section 24. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, accumulated contributions, means the sum of:

            (1)    All contributions made by the member, including member contributions made by an employer after June 30, 1984, pursuant to § 3-12-71;

            (2)    For a member whose contributory service concluded after June 30, 2010, eighty-five percent of the employer contributions or noncontributory service if the member had three years or more of contributory service and fifty percent of the employer contributions if the member had less than three years of service; or for a member whose contributory service concluded before July 1, 2010, one hundred percent of the employer contributions or noncontributory service if the member had three years or more of contributory service and seventy-five percent of the employer contributions if the member had less than three years of service;

            (3)    Member redeposits pursuant to § 3-12-80 and member credited service purchases pursuant to §§ 3-12-83, 3-12-84, and 3-12-84.2; and

            (4)    The effective rate of interest earned on the sum of subdivisions (1), (2), and (3).

    Section 25. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, credited service, means:

            (1)    Years of service, or fractions thereof, for which member contributions were made to the system;

            (2)    Years of noncontributory service, or fractions thereof, credited before July 1, 1974, previously credited under the provisions of the retirement systems consolidated pursuant to § 3-12-46;

            (3)    Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;

            (4)    Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions;

            (5)    Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12-86;

            (6)    Years of service, or fractions thereof, by faculty and administrators employed by the board of regents before April 1, 1964, credited pursuant to §§ 3-12-69.4 and 3-12-69.5;

            (7)    Years of noncontributory service, or fractions thereof, earned before July 1, 1967, but not

credited under the South Dakota public employee retirement system as it was consolidated pursuant to § 3-12-46 because the person earned the service prior to attaining the age of thirty. The service shall be credited only to those persons who are contributing members on July 1, 1987. No service may be credited pursuant to this subdivision to any member who has withdrawn the member's accumulated contributions after July 1, 1967; and

            (8)    Years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under that system.

    Section 26. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twelve consecutive calendar quarters during the member's last forty calendar quarters of membership in the system including time during which the member was not a member but for which the member has received credit under the system. If the compensation received in the last calendar quarter considered exceeds a set percentage of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters exceeds a set percentage of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess shall be excluded in the computation of final average compensation. Those respective set percentages are as follows:

            (1)    Before July 1, 2004, one hundred twenty-five percent and one hundred fifteen percent;

            (2)    Between July 1, 2004, and June 30, 2005, one hundred fifteen and one hundred ten percent; and

            (3)    After June 30, 2005, one hundred five percent and one hundred five percent.

    For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of twelve consecutive calendar quarters. For any member who has less than twelve but more than four calendar quarters of membership in the system, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.

    Section 27. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, improvement factor, means the annual increase in the amount of the benefit provided on July first, compounded annually. However, no annual increase may be provided unless the member has received benefit payments for at least the consecutive, twelve-month period before July first. The annual increase shall be established by the board for each fiscal year, based on the system's fair value funded ratio and the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the past year in which the consumer price index was the highest), as follows:

            (1)    If the system's fair value funded ratio is less than eighty percent, the improvement factor shall be two and one-tenth percent;

            (2)    If the system's fair value funded ratio is eighty percent or greater but less than ninety percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent and no greater than two and four-tenths percent;

            (3)    If the system's fair value funded ratio is ninety percent or greater but less than one hundred percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent and no greater than two and eight-tenths percent; or

            (4)    If the system's fair value funded ratio is one hundred percent or greater, the improvement factor shall be three and one-tenth percent.

    Section 28. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, normal retirement age is age sixty-five for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-five for other Class B credited service.

    Section 29. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, reduction age, means the age at which the sum of the foundation member's age and credited service equals a number as follows:

            (1)    For Class A credited service, an age not less than fifty-five and at which the sum of the foundation member's age and credited service equals eighty-five;

            (2)    For Class B credited service as a justice, judge, or magistrate judge, an age not less than fifty-five and at which the sum of the foundation member's age and credited service equals eighty; and

            (3)    For Class B credited service other than as a justice, judge, or magistrate judge, an age not less than forty-five and at which the sum of the foundation member's age and credited service equals seventy-five.

    Section 30. That § 3-12-47.1 be amended to read:

    3-12-47.1. Any increase in a retired member's benefit as a result of the provisions of the 1997 amendment to subdivision 3-12-47(24) credited service related to years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under the system shall be prospective only from July 1, 1997.

    Section 31. That § 3-12-47.2 be amended to read:

    3-12-47.2. Any member who, pursuant to the provisions of § 3-12-83, has purchased a portion or all of the member's noncontributory service described in subsection (h) of subdivision § 3-12-47(24) earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under the system is entitled to a refund of such purchase cost.

    Section 32. That § 3-12-62.8 be amended to read:

    3-12-62.8. For purposes of determining the retirement benefits of foundation member conservation officers, for credited service earned prior to before July 1, 1983, benefits shall be calculated pursuant to § 3-12-91 and for credited service earned after June 30, 1983, benefits shall be calculated pursuant to § 3-12-92. For purposes of benefits credited service earned prior to before July 1, 1983, a conservation officers shall have officer has a normal retirement age of sixty-five. For purposes of benefits credited service earned after June 30, 1983, a foundation member conservation officers shall have officer has a normal retirement age of fifty-five.


    Section 33. That § 3-12-77 be amended to read:

    3-12-77. A member of the system who is not vested may leave the member's accumulated contributions in the system upon termination of employment for a period not to exceed ten years from the date of termination. However, no additional contributions may be made to the system by the member or a participating unit following the date of termination and no benefits in the retirement system may accrue to a member of the system following the date of termination, except as provided in § 3-12-72.4. If the member withdraws the member's accumulated contributions, membership in the system terminates. At the end of the ten-year period, no further interest may be credited with respect to contributions and no further investment return may be credited with respect to any variable retirement account. If the member fails to withdraw the member's accumulated contributions within eleven years following the member's termination, the member shall forfeit all rights to the member's accumulated contributions, variable retirement account, and to any credited service in connection therewith, if the system has made reasonable efforts to notify the member of the member's withdrawal rights and the effect of this section.

    Section 34. That § 3-12-80 be amended to read:

    3-12-80. If a person whose accumulated contributions have been refunded since July 1, 1974, reenters the system as a foundation member, the person foundation member may elect to redeposit the accumulated contributions, with compound interest at the assumed rate of return between the date of withdrawal and the date of redeposit. The redeposit shall be made within two years after reentry into the system and the credited service forfeited when contributions were refunded shall then be reinstated; any employer contributions forfeited at the time of refund shall be reinstated; and the foundation member, except as provided in § 3-12-131, shall be regarded as having never refunded.

    Any withdrawals of additional contributions made pursuant to § 3-12-104 shall be considered accumulated contributions for purposes of redeposit to reinstate the credited service forfeited when contributions were refunded.

    No generational member may redeposit accumulated contributions.

    Section 35. That § 3-12-90 be amended to read:

    3-12-90. Benefits paid upon early or normal retirement shall commence on the earlier of the member's required beginning date or on the first day of the month following the later of, the date on which the member's contributory service terminated, thirty days after the written application for retirement benefits is received in the office of the administrator, or the date specified in the member's application for retirement. In any event the benefit shall be paid from the first day of the month. The last payment shall be made from the first day of the month in which the member's death occurs.

    An individual who fails to make a timely application for retirement benefits may receive up to a maximum of three months of benefits retroactive to the date on which the member's contributory service terminated. Unless a foundation member's required beginning date for retirement occurs first, the early or normal retirement benefit of a foundation member is effective in accordance with whichever of the following is last:

            (1)    The first day of the month following the date on which the member's contributory service terminated;

            (2)    The first day of the month following an intervening complete calendar month after the date on which the member's written application for retirement benefits is received by the system; or

            (3)    The first day of the month specified in the member's application for retirement.

    The last payment of the member's benefit is for the month in which the member's death occurs.

    Any foundation member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no foundation member may receive any retroactive benefits for any period of time before the first day of the month following the date on which the member's contributory service terminated.

    Section 36. That § 3-12-91 be amended to read:

    3-12-91. Upon retirement, a foundation member shall receive a normal retirement allowance benefit, commencing at normal retirement age or thereafter as provided in § 3-12-90, for Class A credited service, equal to the larger of 1.7% one and seven-tenths percent of final average compensation for each year of Class A credited service before July 1, 2008, plus 1.55% one and fifty-five hundredths percent of final average compensation for each year of Class A credited service after July 1, 2008, or 2.4% two and four-tenths percent of final average compensation for each year of Class A credited service before July 1, 2008, plus 2.25% two and twenty-five hundredths percent of final average compensation for each year of Class A credited service after July 1, 2008, less other public benefits. For purposes of this section, federal military retirement or federal national guard retirement benefits are not other public benefits. For the purposes of this section, any Class A member who did not participate in federal social security during the period of credited service shall be presumed to be entitled to the maximum primary social security benefit permitted at the time of retirement. Class A credited service includes all credited service under this or any of the retirement systems consolidated pursuant to § 3-12-46.

    Section 37. That § 3-12-91.1 be amended to read:

    3-12-91.1. Each participating unit shall make an additional contribution in the amount of six and two-tenths percent of any foundation member's compensation in each calendar year that exceeds the maximum taxable amount for social security for the calendar year. The additional contributions shall be made only for Class A foundation members and may not be treated as employer contributions.

    Section 38. That § 3-12-92 be amended to read:

    3-12-92. Upon retirement, a foundation member shall receive a normal retirement allowance benefit, commencing at normal retirement age or thereafter as provided in § 3-12-90, for Class B credited service other than as a justice, judge, or magistrate judge, equal to 2.4% two and four-tenths percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge before July 1, 2008, plus 2. 0% two percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge after July 1, 2008.

    Section 39. That § 3-12-92.4 be amended to read:

    3-12-92.4. Upon retirement, a foundation member shall receive a normal retirement allowance benefit, commencing at normal retirement age or thereafter as provided in § 3-12-90, for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge equal to 3.733% three and seven hundred thirty-three thousandths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge before July 1, 2008, plus 3. 333% three and three hundred thirty-three thousandths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge after July 1, 2008. A foundation member shall also receive for Class B credited service as a justice, judge, or magistrate judge in excess of fifteen years, 2.4% two and four-tenths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge before July 1, 2008, plus 2.0% two percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge after July 1, 2008.



    Section 40. That § 3-12-94 be amended to read:

    3-12-94. Upon the death of a foundation retiree or any foundation member who has reached normal retirement age, the surviving spouse is eligible to receive a normal retirement allowance benefit, payable in monthly installments, equal to sixty percent of the retirement allowance benefit that the foundation member was receiving or was eligible to receive at the time of death.

    Section 41. That § 3-12-95.4 be amended to read:

    3-12-95.4. On the death of a contributing member after June 30, 2015, who has acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24), or who died while performing usual duties for an employer, and prior to the earlier of the member attaining normal retirement age or the member's retirement, a family benefit shall be paid on behalf of any child of such member. The total family benefit is the greater of:

            (1)    Twenty-five percent of the member's final average compensation at the time of death; or

            (2)    The member's unreduced accrued retirement benefit at the time of death.

    The family benefit, which shall be paid in monthly installments, shall be equally apportioned among any children of the member and shall be paid on behalf of any child to the conservator or custodian of the child, as applicable. However, if the child is eighteen years of age the benefit is payable directly to the child. As any a child becomes ineligible pursuant to subdivision 3-12-47(14), the family benefit shall be reallocated among any remaining eligible children of the deceased member. The family benefit terminates if there are no eligible children of the deceased member pursuant to subdivision 3-12-47(14).

    Section 42. That § 3-12-95.5 be amended to read:

    3-12-95.5. If no family benefit is being paid pursuant to § 3-12-95.4, a surviving spouse of a contributing foundation member who had acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) or died while performing usual duties for the employer and who died after June 30, 2015, shall, upon attaining the age of sixty-five, receive a surviving spouse benefit calculated as follows, whichever is applicable:

            (1)    If a family benefit had been paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the improvement factor from the date the last family benefit was paid; or

            (2)    If a family benefit had not been paid, sixty percent of the amount calculated pursuant to subsection (a) or (b), whichever is greater, increased by the improvement factor from the date of the member's death:

            (a)    Twenty-five percent of the member's final average compensation at the time of the member's death; or

            (b)    The member's unreduced accrued retirement benefit at the time of the member's death.

    The surviving spouse benefit shall be paid in monthly installments for the life of the surviving spouse.

    Section 43. That § 3-12-95.6 be amended to read:


    3-12-95.6. A foundation member's spouse who would be eligible to receive a surviving spouse benefit at age sixty-five may elect to start the benefit prior to age sixty-five but no earlier than the date on which the surviving spouse attains the age of fifty-five. The early surviving spouse benefit, payable for the life of the surviving spouse, is the surviving spouse benefit reduced by five percent for each full year and prorated for each additional full month between the date the early surviving spouse benefit commences and the date the surviving spouse attains the age of sixty-five.

    Section 44. That § 3-12-106 be amended to read:

    3-12-106. Any vested foundation member can retire in the ten years preceding his the member's normal retirement age and the retirement allowance benefit shall be reduced by the lesser of the following:

            (1)    One-fourth of one percent for each full month which remains between the date of commencement of payments and the date the member will reach his the member's normal retirement age; or

            (2)    One-fourth of one percent for each full month which remains between the date of commencement of payments and the date the member will reach his the member's reduction age.

    Section 45. That § 3-12-107 be amended to read:

    3-12-107. Any foundation member who retires before being eligible for social security retirement benefits may elect to receive initial retirement benefit payments from the system in an amount greater than the standard benefit payments computed on the basis of the member's age and earnings at retirement. The greater amount, in conjunction with a later reduced amount, shall be the actuarial equivalent of the normal retirement allowance benefit computed on the basis of age at retirement. The greater amount shall be paid until the foundation member reaches the age of sixty-two, at which time the payment from the system shall be the reduced amount so that, as far as possible, the foundation member's combined monthly retirement income from the system and social security shall approximately equal the greater amount paid prior to age sixty-two.

    Section 46. That § 3-12-110 be amended to read:

    3-12-110. After all benefits currently or potentially payable under any provision of this chapter have terminated, if the aggregate benefits paid to a member and the member's surviving spouse and minor children, including any distribution of the member's variable retirement account, are less than the member's accumulated contributions, the amount by which the accumulated contributions exceed total payments made to date shall be paid in a lump sum as provided in this section.

    Amounts payable under this section shall be paid as follows:

            (1)    To the beneficiary or entity designated by the member, if any is designated; or

            (2)    If no beneficiary or entity is designated, then to the member's surviving spouse; or

            (3)    If no beneficiary or entity is designated and there is no surviving spouse, then to all surviving children, irrespective of age, on a share alike share-alike basis; or

            (4)    If no beneficiary or entity is designated, there is no surviving spouse, and there are no surviving children, then to the member's estate.

    If no claim for payment due upon the death of a deceased member is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the administrator, payment of

the claim is warranted by exceptional circumstances.

    Section 47. That § 3-12-191 be amended to read:

    3-12-191. A retiree receiving a benefit from the system may become a supplemental pension participant by direct rollover of funds held by the member in a variable retirement account or in either or both of the plans created in chapters 3-13 and 3-13A into the fund. Any rollover shall be in compliance with the provisions of § 401(a)(31) of the Internal Revenue Code and shall be recorded in the participant's supplemental pension contract record. All of a participant's funds rolled into the fund shall be expended in full as the single premium for a supplemental pension contract. No single premium may be less than ten thousand dollars. No participant may have more than one supplemental pension contract funded by either or both of the plans created in chapters 3-13 and 3-13A and no more than one supplemental pension contract funded by the participant's variable retirement account. A supplemental pension contract goes into effect when a participant signs the supplemental pension contract. The initial monthly supplemental pension benefit is payable the first day of the first month after the contract goes into effect. Payment of any prior and current supplemental pension benefits shall be made within two months after the contract is in effect.

    Section 48. That § 3-12-192 be amended to read:

    3-12-192. A supplemental pension participant shall receive one of two three types of supplemental pension benefits:

            (1)    A supplemental pension benefit payable monthly for the lifetime of the participant; or

            (2)    A supplemental pension benefit payable monthly for the lifetime of the participant and, upon the death of the participant, a supplemental pension benefit payable monthly to the participant's supplemental pension spouse equal to sixty percent of the monthly benefit amount that the participant was receiving at the time of death; or

            (3)    A supplemental pension benefit payable monthly for the lifetime of the participant and, upon the death of the participant, a supplemental pension benefit payable monthly to the participant's supplemental pension spouse equal to one hundred percent of the monthly benefit amount that the participant was receiving at the time of death.

A participant who is not married at the time of the supplemental pension benefit purchase may contract only for a supplemental pension benefit as described in subdivision (1) and a participant who is married at the time of the supplemental pension benefit purchase may contract only for a supplemental pension benefit as described in subdivision (2) may contract for any of the three types of supplemental pension benefits provided in this section. The contract shall be signed by both the supplemental pension participant and the spouse of the participant, if applicable, and each signature shall be witnessed by a representative of the system or notarized.

    Section 49. That § 3-12-207 be amended to read:

    3-12-207. The disability benefit approved pursuant to § 3-12-206 is the greater of the following calculations:

            (1)    Twenty-five percent of the foundation member's final average compensation at the date of disability; or

            (2)    The foundation member's unreduced accrued retirement benefit at the date of disability.

    The disability benefit shall be paid in monthly installments for the life of the foundation member unless the benefit terminates pursuant to § 3-12-210.

    For purposes of determining the eligibility of a surviving spouse benefit, the disability benefit of a foundation member is considered a retirement benefit when the member attains the age of sixty-five normal retirement age.

    Section 50. That § 3-12-215 be amended to read:

    3-12-215. If no family benefit is being paid pursuant to § 3-12-214, a surviving spouse of a foundation member who received disability benefits pursuant to § 3-12-207 shall, upon attaining the age of sixty-five, receive a monthly benefit, payable for the life of the surviving spouse, equal to one of the following calculations, whichever is applicable:

            (1)    If there was a family benefit paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the improvement factor from the date the last family benefit was paid; or

            (2)    If there was no family benefit paid, sixty percent of the deceased member's disability benefit paid at the time of the member's death, increased by the improvement factor from the date of the member's death.

    Section 51. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, actuarial equivalent, is a benefit of equal value, computed on the basis of the interest rate, mortality, and improvement factor assumptions adopted by the board for purposes of the actuarial valuation. If the board adopts a select and ultimate rate of interest, the interest rate is the ultimate rate. Mortality is based on a unisex rate that is fifty percent male and fifty percent female for employees and beneficiaries, based on the mortality rates for retired employees and beneficiaries, including, if the board adopts a generational mortality table, projection of mortality improvement to the year specified by the board based on the member's and beneficiary's ages as of the date of the calculation and projected generationally after that year. Separate improvement factor assumptions shall be made for foundation and generational members. The system shall make the interest rate, mortality, and improvement factor assumptions public.

    Section 52. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, compensation, means gross wages paid to a member by the employer for personal services rendered during the period considered as credited service. Compensation includes amounts reported as wages, tips, and other compensation on the member's federal form W-2 wage and tax statement, except as otherwise excluded in this section; the amount of member contributions made by an employer after June 30, 1984, pursuant to § 3-12-71; any amount contributed to a member's individual retirement plan which meets the requirements of section 401, 403, 408, or 457 of the Internal Revenue Code; and any amount contributed to a plan described in section 125 of the Internal Revenue Code; and any amount contributed to the system pursuant to § 3-12-83.2 in accord with § 414(h)(2) of the Internal Revenue Code.

    Compensation does not include travel, meals, lodging, moving, or any other expenses incidental to an employer's business which is reimbursed by the employer; lump sum payments for sick leave; lump sum payments for annual leave; payments for insurance coverage of any kind or any other employee benefit by an employer on behalf of an employee or an employee and dependents; any amount paid in a one-time lump sum payment or over a period of time and based on or attributable to retirement or an agreement to retire in the future; payments made upon dismissal or severance; worker's compensation payments; and payments contingent on a member terminating employment at a specified time in the future paid or payable in a lump sum or over a period of time.

    Any compensation in excess of the limits established in § 401(a)(17) of the Internal Revenue Code shall be disregarded for purposes of contributions or for benefit calculations under the system. However, the limit does not apply to compensation earned by a member if the member was

employed by a participating unit before July 1, 1996.

    Section 53. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, a contributing member is any member for whom the system receives an employer contribution report that includes the member's employee and employer contributions indicating that the member is an active member. A member's active membership is terminated and the member is no longer a contributing member when the system receives notice of termination from an employer, accompanied by the member's final employee and employer contributions.

    Section 54. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the phrase, effective rate of interest, means the interest at an annually compounded rate to be established by the board for each fiscal year. The rate shall be no greater than ninety percent of the average ninety-one day United States treasury bill rate for the immediately preceding calendar year and in no event may the rate be more than the rate established by the board pursuant to § 3-12-121 for investment return for purposes of the actuarial valuation. If a member withdraws contributions pursuant to § 3-12-76, 3-12-76.1, or 3-12-77, or if benefits are payable under § 3-12-110, the interest shall be as annually compounded on the preceding June thirtieth.

    Section 55. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of determining eligibility for, and the amount of, any benefit payable pursuant to this chapter, the first day of the month in which a person's birthday falls is considered a person's birthday.

    Section 56. That § 3-12-47 be amended to read:

    3-12-47. Terms as used in this chapter, unless the context otherwise requires, mean:

            (1)    Repealed by SL 2000, ch 24, § 1.

            (2)    "Accumulated contributions," the sum of:

            (a)    All contributions by a member, including member contributions made by an employer on or after July 1, 1984, pursuant to § 3-12-71;

            (b)    Seventy-five percent of employer contributions if the member has less than three years contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) and the contributory service concluded prior to July 1, 2010, or fifty percent of employer contributions if the contributory service concluded on or after July 1, 2010, or one hundred percent of employer contributions if the member has three years or more contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) and the contributory service concluded prior to July 1, 2010, or eighty-five percent of employer contributions if the contributory service concluded on or after July 1, 2010; and

            (c)    Member redeposits pursuant to § 3-12-80 and member credited service purchases pursuant to §§ 3-12-83, 3-12-84, and 3-12-84.2;

                all together with the effective rate of interest credited thereon.

                If credited service is purchased pursuant to § 3-12-83, 3-12-84, or 3-12-84.2, only the

amount of the purchase shall be included as accumulated contributions for the purposes of a refund under this chapter;

            (2A)    "Actuarial accrued liability," the present value of all benefits less the present value of future normal cost contributions;

            (3)    "Actuarial equivalent," a benefit of equal value, including the improvement factor assumption adopted by the board, computed on the basis of interest rate and mortality assumptions adopted by the board for purposes of the actuarial valuation. For purposes of this definition, if the board adopts a select and ultimate rate of interest, the interest rate is the ultimate rate. Also, for purposes of this definition, mortality shall be based on a unisex rate that is fifty percent male and fifty percent female for employees and beneficiaries, based on the mortality rates for retired employees and beneficiaries including, if the board adopts a generational mortality table, projection of mortality improvement to the calendar year containing the beginning of the plan year;

            (4)(2)    "Actuarial requirement," the normal cost and the interest on and amortization of the unfunded actuarial accrued liability accumulated to date over a thirty year period, all expressed in terms of a percentage of covered payroll;

            (5)(3)    "Actuarial experience analysis," a periodic report which reviews basic experience data and furnishes actuarial analysis which substantiates the assumptions adopted for the purpose of making an actuarial valuation of the system;

            (6)(4)    "Actuarial valuation," a projection of the present value of all benefits and the current funded status of the system, based upon stated assumptions as to rates of interest, mortality, disability, salary progressions, withdrawal, and retirement as established by a periodic actuarial experience analysis which takes into account census data of all active members, vested terminated members and retired members and their beneficiaries under the system;

            (6A)(5)    "Actuarial value of assets," the total assets of the system, taking market appreciation into account on a rational and systematic basis;

            (7)(6)    "Air rescue firefighters," employees of the Department of the Military who are stationed at Joe Foss Field, Sioux Falls, and who are directly involved in fire fighting firefighting activities on a daily basis;

            (8)    "Annuity," payment for life; all annuities shall be payable for life unless specifically provided for otherwise;

            (9)(7)    "Approved actuary," any actuary who is a member of the American Academy of Actuaries or an Associate or a Fellow of the Society of Actuaries who meets the qualification standards of the American Academy of Actuaries to issue actuarial opinions regarding the system or any firm retaining such an actuary on its staff and who is appointed by the board to perform actuarial services;

            (9A)(8)    "Assumed rate of return," the actuarial assumption adopted by the board pursuant to § 3-12-121 as the annual assumed percentage return on trust fund assets, compounded;

            (10)(9)    "Beneficiary," the person designated by a member of the system to receive any payments after the death of such member;

            (11)(10)    "Benefits," the amounts paid to a member, spouse, spouse and family, child, or beneficiary as a result of the provisions of this chapter;

            (12)(11)    "Board," the Board of Trustees of the South Dakota Retirement System;

            (12)    "Calendar quarter," a period of three calendar months ending March thirty-first, June thirtieth, September thirtieth, or December thirty-first of any year;

            (13)    "Campus security officers," employees of the Board of Regents whose positions are subject to the minimal educational training standards established by the law enforcement standards commission pursuant to chapter 23-3 and who satisfactorily complete the training required by chapter 23-3 within one year of employment and whose primary duty as sworn law enforcement officers is to preserve the safety of the students, faculty, staff, visitors and the property of the University of South Dakota and South Dakota State University. The employer shall file with the system evidence of the appointment as a sworn law enforcement officer at the time of employment and shall file evidence of satisfactory completion of the training program pursuant to chapter 23-3 within one year of employment;

            (14)    "Child," depending on the circumstances, as follows:

            (a)    For purposes of benefits pursuant to this chapter, an unmarried dependent child of the member, who has not passed the child's nineteenth birthday and each unmarried dependent child, who is totally and permanently disabled, either physically or mentally, regardless of the child's age, if the disability occurred prior to before age nineteen. It includes a stepchild or a foster child who depends on the member for support and lives in the household of the member in a regular parent-child relationship. It also includes any child of the member conceived during the member's lifetime and born after the member's death; or

            (b)    For purposes of beneficiary-type payments pursuant to this chapter, a person entitled to take as a child via intestate succession pursuant to the provisions of Title 29A;

            (15)    "Class A credited service," service credited as a Class A member of the system;

            (16)    "Class A member," all members any member other than a Class B members member or a Class C member and is either a foundation member or a generational member;

            (17)    "Class B credited service," service credited as a Class B member of the system;

            (18)    "Class B member," a member who is a justice, judge, state law enforcement officer, magistrate judge, police officer, firefighter, county sheriff, deputy county sheriff, penitentiary correctional staff, parole agent, air rescue firefighter, campus security officer, court services officer, conservation officer, or park ranger and is either a foundation member or a generational member;

            (18A)(19)    "Class C credited service," service credited as a Class C member of the system;

            (18B)(20)    "Class C member," any member of the cement plant retirement plan including any retiree or any vested member;

            (19)(21)    "Classified employees," employees of public school districts who are not required by law to be certified as teachers, employees of the colleges and universities under the control of the board of regents who are not faculty or administrators and come within the provisions of chapter 3-6A, employees of public corporations, employees of chartered governmental units, and all other participating employees not elsewhere provided for in this chapter;

            (19A)(22)    "Comparable level position," a member's position of employment that is generally equivalent to the member's prior position of employment in terms of required education, required experience, required training, required work history, geographic location, and compensation and benefits;

            (20)    "Compensation," gross wages paid to a member by the employer for personal services rendered during the period considered as credited service:

            (a)    Compensation includes amounts reported as wages, tips and other compensation on the member's federal form W-2 wage and tax statement, except as otherwise excluded in this subdivision; the amount of member contributions made by an employer on or after July 1, 1984, pursuant to § 3-12-71; any amount contributed to a member's individual retirement plan which meets the requirements of section 401, 403, 408, or 457 of the Internal Revenue Code; and any amount contributed to a plan described in section 125 of the Internal Revenue Code; and any amount contributed to the system pursuant to § 3-12-83.2 in accord with § 414(h)(2) of the Internal Revenue Code;

            (b)    Compensation does not include travel, meals, lodging, moving or any other expenses incidental to an employer's business which is reimbursed by the employer; lump sum payments for sick leave; lump sum payments for annual leave; payments for insurance coverage of any kind or any other employee benefit by an employer on behalf of an employee or an employee and dependents; any amount paid in a one-time lump sum payment or over a period of time and based on or attributable to retirement or an agreement to retire in the future; payments made upon dismissal or severance; worker's compensation payments; and payments contingent on a member terminating employment at a specified time in the future paid or payable in a lump sum or over a period of time;

            (c)    Any compensation in excess of the limits established in § 401(a)(17) of the Internal Revenue Code shall be disregarded for purposes of contributions or for benefit calculations under the system. However, the limit does not apply to compensation earned by a member if the member was employed by a participating unit on or before June 30, 1996;

            (21)(23)    "Conservation officers," employees of the Department of Game, Fish and Parks and the Division of Wildlife or Division of Custer State Park who are employed pursuant to § 41-2-11 and whose positions are subject to the requirements as to education and training provided in chapter 23-3;

            (21A)(24)    "Consumer price index," the consumer price index for urban wage earners and clerical workers calculated by the United States Bureau of Labor Statistics;

            (22)(25)    "Contributory service," service to a participating unit during which contributions were made to a South Dakota Retirement System, which may not include years of credited service as granted in § 3-12-84 or 3-12-84.2;

            (23)(26)    "Court services officers," persons appointed pursuant to § 26-7A-8;

            (23A)(27)    "Covered employment," a member's employment as a permanent full-time employee by a participating unit;

            (24)    "Credited service,"

            (a)    Years of service, or fractions thereof, for which member contributions were made to the system;

            (b)    Years of noncontributory service, or fractions thereof, credited prior to July 1, 1974, previously credited under the provisions of the retirement systems consolidated pursuant to § 3-12-46;

            (c)    Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;

            (d)    Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions;

            (e)    Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12-86;

            (f)    Years of service, or fractions thereof, by faculty and administrators employed by the board of regents prior to April 1, 1964, credited pursuant to §§ 3-12-69.4 and 3-12-69.5;

            (g)    Years of noncontributory service, or fractions thereof, earned prior to July 1, 1967, but not credited under the South Dakota public employee retirement system as it was consolidated pursuant to § 3-12-46 because the person earned the service prior to attaining the age of thirty. The service shall be credited only to those persons who are contributing members on July 1, 1987. No service may be credited pursuant to this subsection to any member who has withdrawn the member's accumulated contributions after July 1, 1967; and

            (h)    Years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under that system.

                If the conditions described in § 3-12-122 occur and benefit reductions are necessary to correct those conditions, the credited service granted by this subdivision may be reduced or eliminated;

            (25)(28)    "Deputy county sheriff," an employee of a county that is a participating unit, appointed by the board of county commissioners pursuant to §§ 7-12-9 and 7-12-10, who is a permanent full-time employee and whose position is subject to the minimum educational and training standards established by the law enforcement standards commission pursuant to chapter 23-3. The term "deputy county sheriff," does not include jailers or clerks appointed pursuant to §§ 7-12-9 and 7-12-10 unless the participating unit has requested that the jailer be considered as a deputy county sheriff and the Board of Trustees has approved the request;

            (26)(29)    "Disability" or "disabled," any medically determinable physical or mental impairment that prevents a member from performing the member's usual duties for the member's employer, even with accommodations, or performing the duties of a comparable level position for the member's employer. The term excludes any condition resulting from willful, self-inflicted injury;

            (26A)(30)    "Effective date of retirement," the first day of the month in which retirement benefits are payable pursuant to § 3-12-90;

            (27)    "Effective rate of interest," interest at an annually compounded rate to be established by the board for each fiscal year. The rate shall be no greater than ninety percent of the average ninety-one day United States treasury bill rate for the immediately preceding

calendar year and in no event may the rate be more than the rate established by the board pursuant to § 3-12-121 for investment return for purposes of the actuarial valuation. If a member withdraws contributions pursuant to § 3-12-76, 3-12-76.1, or 3-12-77, or if benefits are payable under § 3-12-110, the interest shall be as annually compounded on the preceding June thirtieth. With respect to amounts due the system under §§ 3-12-69, 3-12-69.3, 3-12-80, 3-12-83 and 3-12-84, the effective rate of interest shall be the assumed rate of return;

            (28)(31)    "Eligible retirement plan," the term eligible retirement plan includes those plans described in section 402(c)(8)(B) of the Internal Revenue Code;

            (29)(32)    "Eligible rollover distribution," any distribution to a member of accumulated contributions pursuant to §§ 3-12-76 and 3-12-76.1. The term does not include any portion of a distribution that represents contributions made to the system on an after tax basis nor distributions paid as a result of the member reaching the required beginning date;

            (30)(33)    "Employer," the State of South Dakota and any department, bureau, board, or commission thereof of the State of South Dakota, or any of its governmental or political subdivisions or any public corporation of the State of South Dakota which elects to become a participating unit;

            (31)(34)    "Employer contributions," amounts contributed by the employer of a contributing member, excluding member contributions made by an employer on or after July 1 June 30, 1984, pursuant to § 3-12-71;

            (32)    Repealed by SL 2004, ch 41, § 6.

            (32A)(35)    "Equivalent public service," any public service other than as a justice, a judge, or a magistrate judge and comparable to class Class B service as defined by this section, if the service is in the employ of a public entity that is not a participating unit;

            (36)    "Fair value of assets," the total assets of the system at fair market value for securities traded on exchanges; for securities not traded on exchanges, a value based on similar securities; and for alternative investments, reported net asset value;

            (37)    "Fair value funded ratio," the fair value of assets divided by the actuarial accrued liability;

            (33)(38)    "Fiduciary," any person who exercises any discretionary authority or control over the management of the system or the management or disposition of its assets, renders investment advice for a fee or other compensation, direct or indirect, or has any authority or responsibility to do so, or has any discretionary authority or responsibility in the administration of the system;

            (34)    "Final average compensation," the highest average annual compensation earned by a member during any period of twelve consecutive calendar quarters during the member's last forty calendar quarters of membership in the system including time during which the member was not a member but for which he has received credit under the system. If the compensation received in the last calendar quarter considered exceeds a set percentage of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters exceeds a set percentage of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess shall be excluded in the computation of final compensation. Those respective set percentages are as follows:

            (a)    On or before June 30, 2004, one hundred twenty-five percent and one hundred fifteen percent;

            (b)    Between July 1, 2004, and June 30, 2005, one hundred fifteen and one hundred ten percent; and

            (c)    On or after July 1, 2005, one hundred five percent and one hundred five percent.

                For purposes of determining final compensation periods for service separated by breaks, the service may be aggregated to constitute a period of twelve consecutive calendar quarters. The term calendar quarter means a period of three calendar months ending March thirty-first, June thirtieth, September thirtieth or December thirty-first of any year;

            (39)    "Foundation member," any member of the system whose contributory service began before July 1, 2017;

            (40)    "Foundation retiree," any foundation member who has retired with a benefit payable from the system;

            (35)(41)    "Firefighter," any full-time firefighter who works at least twenty hours a week and at least six months a year. The term does not include any volunteer firefighter;

            (36)(42)    "Full-time student," a person who is in full-time attendance as a student at an educational institution, as determined by the board in light of the standards and practices of the institution involved, except that no individual shall may be considered a full-time student, if he the student is paid by his the student's employer while attending such an educational institution at the request of, or pursuant to a requirement of, his the employer;

            (37)(43)    "Fund," public employees employees' retirement fund or funds established for the purposes of administration of this chapter;

            (38)(44)    "Funded ratio," the actuarial value of assets divided by the actuarial accrued liability;

            (39)(45)    "General employees," full-time municipal employees who are not firefighters or police officers;

            (46)    "Generational member," any member of the system whose contributory service began after June 30, 2017;

            (47)    "Generational retiree," any generational member who has retired with a benefit payable from the system;

            (39A)(48)    "Health care provider," a physician or other health care practitioner licensed, registered, certified, or otherwise authorized by law to provide specified health services;

            (40)(49)    "Highest annual compensation," a member's compensation used to calculate benefits under §§ 3-12-95, 3-12-99 and 3-12-105 prior to before July 1, 2004, which was the highest annual compensation earned by the member during any one of the last three years of contributory service and which was not more than one hundred fifteen percent of the member's final compensation calculated as of the date of the member's death or disability;

            (41)    "Improvement factor," the annual increase in the amount of the benefit allowance

commencing on the July first in the year after the member has received benefit payments for at least a twelve-month period, compounded annually. The improvement factor effective July 1, 2010, shall be two and one-tenth percent. Beginning July 1, 2010, the annual increase shall be established by the board for each fiscal year, in part on the basis of the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the past year in which the consumer price index was the highest), as follows:

            (a)    If the system's market value funded ratio is less than eighty percent, the improvement factor shall be two and one-tenth percent;

            (b)    If the system's market value funded ratio is eighty percent or greater but less than ninety percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent or no greater than two and four-tenths percent;

            (c)    If the system's market value funded ratio is ninety percent or greater but less than one hundred percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent or no greater than two and eight-tenths percent; or

            (d)    If the system's market value funded ratio is one hundred percent or greater, the improvement factor shall be three and one-tenth percent;

            (41A)(50)    "Internal Revenue Code," or "code," the Internal Revenue Code as in effect as of January 1, 2015 2016;

            (42)(51)    "Law enforcement officer," an agent of the state division of criminal investigation, an officer of the South Dakota Highway Patrol, a police officer, county sheriff, deputy county sheriff, or a firefighter;

            (42A)    "Market value of assets," the total assets of the system at fair market value;

            (42B)    "Market value funded ratio," the market value of assets divided by the actuarial accrued liability;

            (43)(52)    "Member," any person who is participating in and has made contributions to the system and is either a foundation member or generational member. A person is no longer a member if he withdraws his contributions at person's membership ceases when the person withdraws his or her accumulated contributions after termination of employment;

            (44)(53)    "Member contributions," amounts contributed by members, including member contributions made by an employer on or after July 1 June 30, 1984, pursuant to § 3-12-71;

            (44A)(54)    "Military service," a period of active duty with the United States Army, the United States Navy, the United States Air Force, the United States Marine Corps, or the United States Coast Guard, from which duty the member received an honorable discharge or an honorable release;

            (45)(55)    "Municipality," any incorporated municipal government under chapter 9-3 or any chartered governmental unit under the provisions of Article IX of the Constitution of the State of South Dakota;

            (46)    Repealed by SL 2004, ch 42, § 8.

            (56)    "Noncontributory service," for foundation members, service delineated in subdivisions (2), (5), (7), and (8) of section 25 of this Act, and for generational members, service pursuant to § 3-12-86;

            (46A)(57)    "Normal cost," the expected long-term cost of the system benefits and expenses expressed as a percentage of payroll;

            (47)(58)    "Normal retirement," the termination of employment and application for benefits by a member with three or more years of contributory service or noncontributory service as delineated in subsections (b), (e), (g) and (h) of § 3-12-47(24) on or after the member's normal retirement age;

            (48)    "Normal retirement age," age sixty-five for Class A credited service and for Class B credited service as a justice, judge and magistrate judge and age fifty-five for other Class B credited service;

            (49)(59)    "Other public benefits," eighty percent of the primary insurance amount or primary social security benefits that would be provided under federal social security;

            (49A)(60)    "Other public service," service for the government of the United States, including military service; service for the government of any state or political subdivision thereof; service for any agency or instrumentality of any of the foregoing; or service as an employee of an association of government entities described in this subdivision;

            (50)(61)    "Park rangers," employees of the Department of Game, Fish and Parks within the Division of Parks and Recreation and whose positions are subject to the requirements as to education and training provided in chapter 23-3 and whose primary duty is law enforcement in the state park system;

            (51)(62)    "Parole agent," employees an employee of the Department of Corrections employed pursuant to § 24-15-14 who are is actually involved in direct supervision of parolees on a daily basis;

            (52)(63)    "Participating unit," the State of South Dakota and any department, bureau, board, or commission thereof of the State of South Dakota, and any of its political subdivisions or any public corporation of the State of South Dakota which has employees who are members of the retirement system created in this chapter;

            (53)(64)    "Penitentiary correctional staff," the warden, deputy warden, and any other correctional staff holding a security position as determined by the Department of Corrections and approved by the Bureau of Human Resources and the Bureau of Finance and Management. For purposes of administration of this chapter final determination of penitentiary correctional staff as Class B members shall be made by the board of trustees based on the recommendation of the Department of Corrections, Bureau of Human Resources, and the Bureau of Finance and Management;

            (54)(65)    "Permanent full-time employee," those employees who have any employee who has been placed in a permanent classification who are is customarily employed by a participating unit for twenty hours or more a week and at least six months a year. The participating unit shall decide if an employee is a permanent full-time employee and that decision is conclusive;

            (54A)(66)    "Plan year," a period extending from July first of one calendar year through June thirtieth of the following calendar year;

            (55)(67)    "Police officer," any employee in the police department of any participating municipality holding the rank of patrol officer, including probationary patrol officer, or higher rank and whose position is subject to the minimum educational and training standards established by the law enforcement officers standards commission pursuant to chapter 23-3. The term, police officer, does not include civilian employees of a police department nor any person employed by a municipality whose services as a police officer require less than twenty hours a week and six months a year. If a municipality which is a participating unit operates a city jail, the participating unit may request that any jailer appointed pursuant to § 9-29-25 be considered a police officer, subject to the approval of the board;

            (56)(68)    "Political subdivision" includes but is not limited to municipalities, school districts, counties, chartered governmental units, any public corporation or entity, and any special districts any municipality, school district, county, chartered governmental unit, public corporation or entity, and special district created for any governmental function;

            (56A)(69)    "Present value of all benefits," the present value of all benefits expected to be paid to all retired, terminated, and active members and beneficiaries, based on past and future credited service and future compensation increases.

            (57)(70)    "Present value of benefits earned to date," the present value of the benefits currently being paid to retired members and their beneficiaries and the present value of benefits payable at retirement to active members, based on their earnings and credited service to date of the actuarial valuation;

            (58)(71)    "Projected compensation," a deceased or disabled member's final average compensation multiplied by the improvement factor commencing each July first for each complete twelve-month period elapsed between the date of the member's death or disability, whichever occurred earlier, and the date the member would attain normal retirement age;

            (59)(72)    "Projected service," the credited service plus the service which the member would have been credited with at his normal retirement age had he the member continued in the system and received credit at the same rate he the member was credited during the year covered by the compensation that was used in the calculation of the disability or family benefit;

            (59A)(73)    "Qualified military service," service in the uniformed services as defined in § 414(u)(5) of the Internal Revenue Code;

            (60)    "Reduction age,"

            (a)    For Class A credited service, the age at which the sum of the member's age and credited service equals eighty-five. However, the reduction age may not be less than fifty-five for Class A credited service;

            (b)    For Class B credited service as a justice, judge, or magistrate judge, the age at which the sum of the member's age and credited service equals eighty. The reduction age may not be less than fifty-five for Class B credited service as a justice, judge, or magistrate judge;

            (c)    For Class B credited service other than as a justice, judge or magistrate judge, the age at which the sum of the member's age and credited service equals seventy-five. The reduction age for Class B credited service other than as a justice, judge, or magistrate judge may not be less than forty-five;

            (61)(74)    "Required beginning date," the later of April first of the calendar year following the calendar year in which the member attains age seventy and one-half or April first of the calendar year following the calendar year in which the member retires;

            (62)(75)    "Retiree," any foundation or generational member who retires with an annuity a lifetime benefit payable from the system;

            (63)(76)    "Retirement," the severance of a member from the employ of a participating unit with a retirement allowance benefit payable from the system;

            (64)(77)    "Retirement allowance benefit," the benefits that are monthly amount payable upon the retirement of a member;

            (64A)(78)    "Single premium," the lump-sum amount paid by a supplemental pension participant pursuant to a supplemental pension contract in consideration for a supplemental pension benefit;

            (64B)(79)    "Social investment," investment, divestment, or prohibition of investment of the assets of the system for purposes other than maximum risk-adjusted investment return, which other purposes include ideological purposes, environmental purposes, political purposes, religious purposes, or purposes of local or regional economic development;

            (65)(80)    "Spouse," a person who was married to the member at the time of the death of the member and whose marriage was both before the member's retirement and more than twelve months prior to before the death of the member and prior to the member's retirement;

            (66)(81)    "State employees," employees of the departments, bureaus, commissions, and boards of the State of South Dakota;

            (66A)(82)    "Supplemental pension benefit," any single-premium immediate pension benefit payable pursuant to §§ 3-12-192 and 3-12-193;

            (66B)(83)    "Supplemental pension contract," any agreement between a participant and the system upon which a supplemental pension is based, including the amount of the single premium, the type of pension benefit, and the monthly supplemental pension payment amount;

            (66C)(84)    "Supplemental pension contract record," the record for each supplemental pension participant reflecting relevant participant data; a designation of any beneficiary, if any; the amount of the participant's funds rolled into the fund; the provisions of the participant's supplemental pension contract; and supplemental pension payments made pursuant to the contract;

            (66D)(85)    "Supplemental pension participant," any retiree receiving a benefit from the system who chooses to purchase a supplemental pension benefit pursuant to the provisions of this chapter;

            (66E)(86)    "Supplemental pension spouse," any person who was married to a supplemental pension participant at the time the participant entered into the supplemental pension contract;

            (67)(87)    "System," the South Dakota Retirement System created in this chapter;

            (68)(88)    "Tax-qualifying purchase unit," any participating unit which elects to allow the

unit's employees to purchase credited service on a tax-deferred basis by means of employer contribution agreements as outlined in §§ 3-12-83.1 and 3-12-83.2;

            (69)(89)    "Teacher," any person who has a valid teacher's certificate issued by the State of South Dakota, who is in the employ of a public school district, and shall also include the certified teachers employed by the Human Services Center, South Dakota Developmental Center--Redfield, State Penitentiary, Department of Education, State Training School, School for the Deaf, School for the Blind and the Visually Impaired, Children's Care Hospital and School, public nonprofit special education facilities, community support providers certified by the Department of Human Services and public financed multi-district education programs;

            (70)(90)    "Terminated," complete severance of employment from public service of any member by resignation or discharge, not including leave of absence, layoff, vacation leave, sick leave, or jury duty, and involving all termination proceedings routinely followed by the member's participating unit, including payment to the member for unused vacation leave, payment to the member for unused sick leave, payment to the member for severance of an employment contract, severance of employer-provided health insurance coverage, severance of employer-provided life insurance coverage, or severance of any other such employer-provided perquisite of employment granted by the member's participating unit to an active employee;

            (71)(91)    "Trustee," a member of the board of trustees;

            (72)(92)    "Unfunded actuarial accrued liability," the actuarial accrued liability less the actuarial value of assets;

            (73)(93)    "Vested," the right to a retirement annuity benefit from the system based on the provisions of this chapter after three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g) and (h) of § 3-12-47(24), even if the member leaves the employment of a participating unit, provided that the member does not withdraw accumulated contributions. A member who leaves the employment of a participating unit is not entitled to benefits under §§ 3-12-95, 3-12-98, 3-12-99, 3-12-104, and 3-12-105.

     Signed February 23, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\032.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\033.wpd
CHAPTER 33

(HB 1214)

Conflicts of interest for authority, board, or commission members.


        ENTITLED, An Act to regulate conflicts of interest for authority, board, or commission members.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    No elected or appointed member of a state authority, board, or commission may have an interest in any contract or derive a direct benefit from any contract with the state which is within the jurisdiction or relates to the subject matter of the state authority, board or commission or with a political subdivision of the state if the political subdivision administers or executes similar subject

matter programs as the state authority, board or commission, nor may the member have an interest in any contract or derive a direct benefit from any contract for one year after the end of the member's term on the authority, board, or commission except as provided in section 3 and section 4 of this Act.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    An elected or appointed member of an authority, board, or commission derives a direct benefit from a contract if the state authority, board, or commission member, the authority, board, or commission member's spouse, or any other persons the authority, board, or commission member lives with and commingles assets:

            (1)    Has more than a five percent ownership or other interest in an entity that is a party to the contract;

            (2)    Derives income, compensation, or commission directly from the contract or from the entity that is a party to the contract;

            (3)    Acquires property under the contract; or

            (4)    Serves on the board of directors of an entity that derives income or commission directly from the contract or acquires property under the contract.

    An authority, board, or commission member does not derive a direct benefit from a contract based solely on the value associated with the authority, board, or commission member's investments or holdings, or the investments or holdings of other persons the authority, board, or commission member lives with and commingles assets. A member of an authority, board, or commission does not have an interest in a contract nor does the member receive a direct benefit by participating in a vote or a decision where the member's only interest is the effect of an act of general application.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Any elected or appointed authority, board, or commission may authorize an authority, board, or commission member to have an interest in a contract or to derive a direct benefit from a contract if:

            (1)    The authority, board, or commission member has provided full written disclosure to the authority, board, or commission;

            (2)    The authority, board, or commission has reviewed the essential terms of the transaction or contract and the authority, board, or commission member's role in the contract or transaction; and

            (3)    The transaction and the terms of the contract are fair, reasonable, and not contrary to the public interest.

    No member of a state authority, board, or commission may participate in or vote upon a decision of the state authority, board, or commission relating to a matter in which the member has an interest or derives a direct benefit.

    The authorization shall be in writing. Any authorization given pursuant to this section is a public record. Each authorization shall be filed with the auditor-general. The auditor-general shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee. A member of an authority, board, or commission may comply with this section if: the authority, board, or commission puts on its regular meeting agenda an inquiry for conflicts disclosure prior to the consideration of any substantive matters; the member publicly discloses his or her interest in a contract, direct benefits, or other conflict with any matter on the agenda; the member is excused from discussion and consideration of the matter; the board determines the matter

underlying the conflict is fair, reasonable, and not contrary to the public interest; and the disclosure is included in the minutes which are publicly available.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Within the one-year period prohibiting any contract with an elected or appointed authority, board, or commission, the authority, board, or commission may approve a former authority, board, or commission member to contract with the elected or appointed authority, board, or commission if the authority, board, or commission determines that the transaction and the terms of the contract are fair, reasonable, and are in the best interests of the public. The authorization shall be in writing.

    Any approval given pursuant to this section is a public record. Each approval shall be filed with the auditor-general. The auditor-general shall compile the approvals and present them annually for review by the Government Operations and Audit Committee.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    Any elected or appointed authority, board, or commission member who knowingly violates sections 1 to 4, inclusive, of this Act, shall be removed from the authority, board, or commission and is guilty of a Class 1 misdemeanor. Any benefit to the authority, board, or commission member in violation of sections 1 and 2 of this Act is subject to forfeiture and any contract made in violation of this Act is voidable by the authority, board, or commission.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    No board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity that receives money from or through the state may have an interest in a contract nor receive a direct benefit from a contract that the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity is a party to the contract except as provided in section 8 of this Act.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    A person described in section 6 of this Act derives a direct benefit from a contract if the person, the person's spouse, or other persons the person lives with and commingles assets:

            (1)    Has more than a five percent ownership or other interest in an entity that is a party to the contract;

            (2)    Derives income, compensation, or commission directly from the contract or from the entity that is a party to the contract;

            (3)    Acquires property under the contract; or

            (4)    Serves on the board of directors of an entity that derives income directly from the contract or acquires property under the contract.

    A person does not derive a direct benefit from a contract based solely on the value associated with the person's investments or holdings, or the investments or holdings of other persons the state officer or employee lives with and commingles assets.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    A local service agency, school district, cooperative education service unit, education service

agency, nonprofit education service agency, or jointly governed education service entity may authorize a board member, fiscal agent, officer, or executive to have an interest in a contract or derive a direct benefit from a contract if:

            (1)    The person has provided full written disclosure to the agency, district, or unit governing board;

            (2)    The governing board has reviewed the essential terms of the transaction or contract and the person's role in the contract or transaction; and

            (3)    The transaction or the terms of the contract are fair, reasonable, and not contrary to the public interest.

    No member of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may participate in or vote upon a decision of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity relating to a matter in which the member has an interest or derives a direct benefit.

    The authorization shall be in writing. Any authorization given pursuant to this section is a public record. Each authorization shall be filed with the auditor-general. The auditor-general shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee. A board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may comply with this section if: the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity puts on its regular meeting agenda an inquiry for conflicts disclosure prior to the consideration of any substantive matters; the person subject to this Act publicly discloses his or her interest in a contract, direct benefit, or other conflict with any matter on the agenda; the person is excused from discussion and consideration of such matters; the board determines the matter underlying the conflict is fair, reasonable, and not contrary to the public interest; and the disclosure is included in the minutes which are publicly available.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    Any person who knowingly violates sections 6 to 8, inclusive, of this Act shall be removed from office or employment and is guilty of a Class 1 misdemeanor. Any benefit to a person derived from the person's knowing violation of sections 6 to 8, inclusive, of this Act is subject to forfeiture. Any contract made in violation of sections 6 to 8, inclusive, of this Act is voidable by the governing body of the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    The following authorities, boards, or commissions are subject to this Act:

            (1)    South Dakota Building Authority;

            (2)    Board of Economic Development;

            (3)    South Dakota Housing Development Authority;

            (4)    South Dakota Health and Education Facilities Authority;

            (5)    Science and Technology Authority Board of Directors;

            (6)    South Dakota Ellsworth Development Authority;

            (7)    South Dakota Commission on Gaming;

            (8)    South Dakota Lottery Commission;

            (9)    State Brand Board;

            (10)    Game, Fish and Parks Commission;

            (11)    Banking Commission;

            (12)    Board of Trustees of the South Dakota Retirement System;

            (13)    Aeronautics Commission;

            (14)    South Dakota State Railroad Board;

            (15)    Transportation Commission;

            (16)    South Dakota Board of Education;

            (17)    Board of Regents;

            (18)    Board of Pardons and Paroles;

            (19)    Board of Minerals and Environment;

            (20)    Board of Water and Natural Resources;

            (21)    South Dakota Railroad Authority; and

            (22)    Board of Water Management.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    Any entity established pursuant to § 13-3-76 to 13-3-81 not subject to an audit requirement under § 13-5-33.2 shall be audited annually. Each audit required under state law shall be done to confirm compliance with sections 3 and 8 of this Act according to guidelines established by the auditor-general.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\033.wpd



PUBLIC FISCAL ADMINISTRATION

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\034.wpd
CHAPTER 34

(SB 172)

The General Appropriation Act for fiscal year 2017.


        ENTITLED, An Act to appropriate money for the ordinary expenses of the legislative, judicial, and executive departments of the state, the expenses of state institutions, interest on the public debt, and for common schools.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated out of any money in the state treasury not otherwise appropriated the following sums of money or expenditure authority, or so much thereof as may be necessary, for the ordinary expenses of the legislative, judicial, and executive departments of the state, certain officers, boards, and commissions, and support and maintenance of the educational, charitable, and penal institutions of the state for the fiscal year ending June 30, 2017.

GENERAL FEDERAL OTHER TOTAL
FUNDS FUNDS FUNDS FUNDS
SECTION 2. DEPARTMENT OF EXECUTIVE MANAGEMENT      
(1)   Office of the Governor          
   
Personal Services  
$1,872,169   $0   $0   $1,872,169  
   
Operating Expenses  
$443,685   $0   $0   $443,685  
             
   
Total  
$2,315,854   $0   $0   $2,315,854  
   
F.T.E.  
      21.5  
             
(2)   Governor's Contingency Fund          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$75,000   $0   $0   $75,000  
             
   
Total  
$75,000   $0   $0   $75,000  
   
F.T.E.  
      0.0  
             
(3)   Governor's Office of Economic Development        
   
Personal Services  
$1,710,016   $540,305   $643,602   $2,893,923  
   
Operating Expenses  
$875,311   $8,925,312   $33,551,132   $43,351,755  
             
   
Total  
$2,585,327   $9,465,617   $34,194,734   $46,245,678  
   
F.T.E.  
      40.6  
             
(4)   Office of Research Commerce          
   
Personal Services  
$180,466   $0   $0   $180,466  
   
Operating Expenses  
$3,939,668   $0   $500,000   $4,439,668  
             
   
Total  
$4,120,134   $0   $500,000   $4,620,134  
   
F.T.E.  
      2.0  
             
(5)   SD Housing Development Authority--Informational        
   
Personal Services  
$0   $1,485,134   $3,337,666   $4,822,800  
   
Operating Expenses  
$0   $679,308   $7,490,960   $8,170,268  
             
   
Total  
$0   $2,164,442   $10,828,626   $12,993,068  
   
F.T.E.  
      65.0  
             
(6)   SD Science and Technology Authority--Informational        
   
Personal Services  
$0   $0   $152,719   $152,719  
   
Operating Expenses  
$0   $0   $2,325,347   $2,325,347  
             
   
Total  
$0   $0   $2,478,066   $2,478,066  
   
F.T.E.  
      0.7  
             
(7)   SD Ellsworth Development Authority--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $611,420   $611,420  
             
   
Total  
$0   $0   $611,420   $611,420  
   
F.T.E.  
      0.0  
             
(8A)   Building SD - REDI Grants - Info          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $500,000   $500,000  
             
   
Total  
$0   $0   $500,000   $500,000  
   
F.T.E.  
      0.0  
             
(8B)   Building SD - Local Infrastructure Improvement - Info        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,500,000   $2,500,000  
             
   
Total  
$0   $0   $2,500,000   $2,500,000  
   
F.T.E.  
      0.0  
             
(8C)   Building SD - Economic Development Partnership        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $1,500,000   $1,500,000  
             
   
Total  
$0   $0   $1,500,000   $1,500,000  
   
F.T.E.  
      0.0  
             
(8D)   Building SD - SD Housing Opportunity - Info        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,500,000   $2,500,000  
             
   
Total  
$0   $0   $2,500,000   $2,500,000  
   
F.T.E.  
      0.0  
             
(9)   Lieutenant Governor          
   
Personal Services  
$21,338   $0   $0   $21,338  
   
Operating Expenses  
$13,268   $0   $0   $13,268  
             
   
Total  
$34,606   $0   $0   $34,606  
   
F.T.E.  
      0.5  
             
(10)   Bureau of Finance and Management (BFM)        
   
Personal Services  
$686,876   $0   $2,426,885   $3,113,761  
   
Operating Expenses  
$223,908   $0   $2,567,139   $2,791,047  
             
   
Total  
$910,784   $0   $4,994,024   $5,904,808  
   
F.T.E.  
      36.0  
             
(11)   Sale Leaseback, BFM          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$4,000,000   $0   $0   $4,000,000  
             
   
Total  
$4,000,000   $0   $0   $4,000,000  
   
F.T.E.  
      0.0  
             
(12)   Computer Services and Development        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,000,000   $2,000,000  
             
   
Total  
$0   $0   $2,000,000   $2,000,000  
   
F.T.E.  
      0.0  
             
(13)   Building Authority--Informational        
   
Personal Services  
$0   $0   $2,500   $2,500  
   
Operating Expenses  
$0   $0   $578,601   $578,601  
             
   
Total  
$0   $0   $581,101   $581,101  
   
F.T.E.  
      0.0  
             
(14)   Health & Education Facilities Authority--Informational      
   
Personal Services  
$0   $0   $495,857   $495,857  
   
Operating Expenses  
$0   $0   $229,412   $229,412  
             
   
Total  
$0   $0   $725,269   $725,269  
   
F.T.E.  
      6.0  
             
(15)   Employee Compensation and Billing Pools        
   
Personal Services  
$11,532,200   $5,533,644   $12,471,646   $29,537,490  
   
Operating Expenses  
$784,902   $561,580   $473,685   $1,820,167  
             
   
Total  
$12,317,102   $6,095,224   $12,945,331   $31,357,657  
   
F.T.E.  
      0.0  
             
(16)   Educational Enhancement Funding Corporation--Informational      
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $184,029   $184,029  
             
   
Total  
$0   $0   $184,029   $184,029  
   
F.T.E.  
      0.0  
             
(17)   Administrative Services, Bureau of Administration (BOA)      
   
Personal Services  
$0   $0   $379,687   $379,687  
   
Operating Expenses  
$683   $0   $111,957   $112,640  
             
   
Total  
$683   $0   $491,644   $492,327  
   
F.T.E.  
      3.5  
             
(18)   Sale Leaseback (BOA)          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$289,450   $0   $0   $289,450  
             
   
Total  
$289,450   $0   $0   $289,450  
   
F.T.E.  
      0.0  
             
(19)   Central Services          
   
Personal Services  
$186,880   $0   $6,850,077   $7,036,957  
   
Operating Expenses  
$210,049   $0   $18,064,367   $18,274,416  
             
   
Total  
$396,929   $0   $24,914,444   $25,311,373  
   
F.T.E.  
      135.5  
             
(20)   State Engineer          
   
Personal Services  
$0   $0   $1,055,942   $1,055,942  
   
Operating Expenses  
$0   $0   $231,829   $231,829  
             
   
Total  
$0   $0   $1,287,771   $1,287,771  
   
F.T.E.  
      14.0  
             
(21)   Statewide Maintenance and Repair        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$17,771,043   $500,000   $3,089,246   $21,360,289  
             
   
Total  
$17,771,043   $500,000   $3,089,246   $21,360,289  
   
F.T.E.  
      0.0  
             
(22)   Office of Hearing Examiners          
   
Personal Services  
$259,691   $0   $0   $259,691  
   
Operating Expenses  
$73,570   $0   $0   $73,570  
             
   
Total  
$333,261   $0   $0   $333,261  
   
F.T.E.  
      3.0  
             
(23)   Obligation Recovery Center          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$450,000   $0   $0   $450,000  
             
   
Total  
$450,000   $0   $0   $450,000  
   
F.T.E.  
      0.0  
             
(24)   Risk Management Administration - Informational        
   
Personal Services  
$0   $0   $512,312   $512,312  
   
Operating Expenses  
$0   $0   $3,440,013   $3,440,013  
             
   
Total  
$0   $0   $3,952,325   $3,952,325  
   
F.T.E.  
      6.0  
             
(25)   Risk Management Claims - Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,222,898   $2,222,898  
             
   
Total  
$0   $0   $2,222,898   $2,222,898  
   
F.T.E.  
      0.0  
             
(26)   Captive Insurance Pool          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $1,836,000   $1,836,000  
             
   
Total  
$0   $0   $1,836,000   $1,836,000  
   
F.T.E.  
      0.0  
             
(27)   Data Centers, Bureau of Information and Telecommunications (BIT)      
   
Personal Services  
$0   $0   $5,242,874   $5,242,874  
   
Operating Expenses  
$0   $0   $4,400,416   $4,400,416  
             
   
Total  
$0   $0   $9,643,290   $9,643,290  
   
F.T.E.  
      64.0  
             
(28)   Development          
   
Personal Services  
$0   $0   $12,310,247   $12,310,247  
   
Operating Expenses  
$0   $0   $2,183,487   $2,183,487  
             
   
Total  
$0   $0   $14,493,734   $14,493,734  
   
F.T.E.  
      153.0  
             
(29)   Telecommunications Services          
   
Personal Services  
$0   $0   $6,840,755   $6,840,755  
   
Operating Expenses  
$0   $0   $9,988,057   $9,988,057  
             
   
Total  
$0   $0   $16,828,812   $16,828,812  
   
F.T.E.  
      86.0  
             
(30)   South Dakota Public Broadcasting        
   
Personal Services  
$2,794,243   $0   $914,004   $3,708,247  
   
Operating Expenses  
$1,258,563   $422,484   $2,731,240   $4,412,287  
             
   
Total  
$4,052,806   $422,484   $3,645,244   $8,120,534  
   
F.T.E.  
      59.5  
             
(31)   BIT Administration          
   
Personal Services  
$0   $0   $1,580,602   $1,580,602  
   
Operating Expenses  
$0   $0   $321,661   $321,661  
             
   
Total  
$0   $0   $1,902,263   $1,902,263  
   
F.T.E.  
      17.0  
             
(32)   State Radio Engineering          
   
Personal Services  
$739,413   $45,524   $11,617   $796,554  
   
Operating Expenses  
$2,292,324   $166,420   $143,927   $2,602,671  
             
   
Total  
$3,031,737   $211,944   $155,544   $3,399,225  
   
F.T.E.  
      11.0  
             
(33)   Personnel Management and Employee Benefits (BHR)        
   
Personal Services  
$209,552   $0   $4,556,409   $4,765,961  
   
Operating Expenses  
$63,504   $0   $1,963,793   $2,027,297  
             
   
Total  
$273,056   $0   $6,520,202   $6,793,258  
   
F.T.E.  
      73.5  
             
(34)   DEPARTMENT TOTAL, EXECUTIVE MANAGEMENT      
   
Personal Services  
$20,192,844   $7,604,607   $59,785,401   $87,582,852  
   
Operating Expenses  
$32,764,928   $11,255,104   $108,240,616   $152,260,648  
             
   
Total  
$52,957,772   $18,859,711   $168,026,017   $239,843,500  
   
F.T.E.  
      798.3  
             
SECTION 3. DEPARTMENT OF REVENUE        
(1)   Administration, Secretary of Revenue        
   
Personal Services  
$0   $0   $2,080,738   $2,080,738  
   
Operating Expenses  
$0   $0   $1,633,589   $1,633,589  
             
   
Total  
$0   $0   $3,714,327   $3,714,327  
   
F.T.E.  
      28.0  
             
(2)   Business Tax          
   
Personal Services  
$0   $0   $3,558,749   $3,558,749  
   
Operating Expenses  
$0   $0   $888,343   $888,343  
             
   
Total  
$0   $0   $4,447,092   $4,447,092  
   
F.T.E.  
      57.5  
             
(3)   Motor Vehicles          
   
Personal Services  
$0   $0   $2,352,847   $2,352,847  
   
Operating Expenses  
$0   $0   $6,439,668   $6,439,668  
             
   
Total  
$0   $0   $8,792,515   $8,792,515  
   
F.T.E.  
      46.0  
             
(4)   Property and Special Taxes          
   
Personal Services  
$999,420   $0   $0   $999,420  
   
Operating Expenses  
$264,033   $0   $0   $264,033  
             
   
Total  
$1,263,453   $0   $0   $1,263,453  
   
F.T.E.  
      15.0  
             
(5)   Audits          
   
Personal Services  
$0   $0   $3,941,952   $3,941,952  
   
Operating Expenses  
$0   $0   $597,261   $597,261  
             
   
Total  
$0   $0   $4,539,213   $4,539,213  
   
F.T.E.  
      55.0  
             
(6)   Instant and On-line Operation--Informational        
   
Personal Services  
$0   $0   $1,411,500   $1,411,500  
   
Operating Expenses  
$0   $0   $36,936,302   $36,936,302  
             
   
Total  
$0   $0   $38,347,802   $38,347,802  
   
F.T.E.  
      21.0  
             
(7)   Video Lottery          
   
Personal Services  
$0   $0   $672,358   $672,358  
   
Operating Expenses  
$0   $0   $1,940,101   $1,940,101  
             
   
Total  
$0   $0   $2,612,459   $2,612,459  
   
F.T.E.  
      10.0  
             
(8)   Commission on Gaming--Informational        
   
Personal Services  
$0   $0   $1,033,429   $1,033,429  
   
Operating Expenses  
$0   $0   $9,609,873   $9,609,873  
             
   
Total  
$0   $0   $10,643,302   $10,643,302  
   
F.T.E.  
      16.0  
             
(9)   DEPARTMENT TOTAL, REVENUE        
   
Personal Services  
$999,420   $0   $15,051,573   $16,050,993  
   
Operating Expenses  
$264,033   $0   $58,045,137   $58,309,170  
             
   
Total  
$1,263,453   $0   $73,096,710   $74,360,163  
   
F.T.E.  
      248.5  
             
SECTION 4. DEPARTMENT OF AGRICULTURE        
(1)   Administration, Secretary of Agriculture        
   
Personal Services  
$682,362   $42,302   $76,542   $801,206  
   
Operating Expenses  
$186,254   $18,665   $93,841   $298,760  
             
   
Total  
$868,616   $60,967   $170,383   $1,099,966  
   
F.T.E.  
      9.5  
             
(2)   Agricultural Services and Assistance        
   
Personal Services  
$1,463,240   $1,841,056   $1,157,436   $4,461,732  
   
Operating Expenses  
$608,744   $1,995,468   $1,882,808   $4,487,020  
             
   
Total  
$2,071,984   $3,836,524   $3,040,244   $8,948,752  
   
F.T.E.  
      81.9  
             
(3)   Agricultural Development and Promotion        
   
Personal Services  
$1,260,234   $473,431   $162,632   $1,896,297  
   
Operating Expenses  
$463,895   $1,132,230   $670,648   $2,266,773  
             
   
Total  
$1,724,129   $1,605,661   $833,280   $4,163,070  
   
F.T.E.  
      29.0  
             
(4)   Animal Industry Board          
   
Personal Services  
$1,715,416   $1,072,434   $132,772   $2,920,622  
   
Operating Expenses  
$342,429   $622,804   $141,640   $1,106,873  
             
   
Total  
$2,057,845   $1,695,238   $274,412   $4,027,495  
   
F.T.E.  
      41.0  
             
(5)   American Dairy Association--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,540,100   $2,540,100  
             
   
Total  
$0   $0   $2,540,100   $2,540,100  
   
F.T.E.  
      0.0  
             
(6)   Wheat Commission--Informational        
   
Personal Services  
$0   $0   $234,930   $234,930  
   
Operating Expenses  
$0   $0   $1,882,106   $1,882,106  
             
   
Total  
$0   $0   $2,117,036   $2,117,036  
   
F.T.E.  
      3.0  
             
(7)   Oilseeds Council--Informational          
   
Personal Services  
$0   $0   $1,309   $1,309  
   
Operating Expenses  
$0   $0   $363,954   $363,954  
             
   
Total  
$0   $0   $365,263   $365,263  
   
F.T.E.  
      0.0  
             
(8)   Soybean Research and Promotion Council--Informational      
   
Personal Services  
$0   $0   $510,828   $510,828  
   
Operating Expenses  
$0   $0   $10,523,756   $10,523,756  
             
   
Total  
$0   $0   $11,034,584   $11,034,584  
   
F.T.E.  
      8.0  
             
(9)   Brand Board--Informational          
   
Personal Services  
$0   $0   $1,594,056   $1,594,056  
   
Operating Expenses  
$0   $0   $524,003   $524,003  
             
   
Total  
$0   $0   $2,118,059   $2,118,059  
   
F.T.E.  
      33.0  
             
(10)   Corn Utilization Council--Informational        
   
Personal Services  
$0   $0   $105,950   $105,950  
   
Operating Expenses  
$0   $0   $5,815,082   $5,815,082  
             
   
Total  
$0   $0   $5,921,032   $5,921,032  
   
F.T.E.  
      1.0  
             
(11)   Board of Veterinary Medicine Examiners--Informational      
   
Personal Services  
$0   $0   $2,579   $2,579  
   
Operating Expenses  
$0   $0   $56,555   $56,555  
             
   
Total  
$0   $0   $59,134   $59,134  
   
F.T.E.  
      0.0  
             
(12)   Pulse Crops Council--Informational        
   
Personal Services  
$0   $0   $1,000   $1,000  
   
Operating Expenses  
$0   $0   $28,500   $28,500  
             
   
Total  
$0   $0   $29,500   $29,500  
   
F.T.E.  
      0.0  
             
(13)   State Fair          
   
Personal Services  
$0   $0   $904,176   $904,176  
   
Operating Expenses  
$322,567   $0   $2,287,640   $2,610,207  
             
   
Total  
$322,567   $0   $3,191,816   $3,514,383  
   
F.T.E.  
      19.5  
             
(14)   DEPARTMENT TOTAL, AGRICULTURE        
   
Personal Services  
$5,121,252   $3,429,223   $4,884,210   $13,434,685  
   
Operating Expenses  
$1,923,889   $3,769,167   $26,810,633   $32,503,689  
             
   
TOTAL  
$7,045,141   $7,198,390   $31,694,843   $45,938,374  
   
F.T.E.  
      225.9  
             
SECTION 5. DEPARTMENT OF TOURISM        
(1)   Tourism          
   
Personal Services  
$0   $0   $1,678,876   $1,678,876  
   
Operating Expenses  
$0   $0   $13,152,699   $13,152,699  
             
   
Total  
$0   $0   $14,831,575   $14,831,575  
   
F.T.E.  
      25.0  
             
(2)   Arts          
   
Personal Services  
$0   $0   $258,441   $258,441  
   
Operating Expenses  
$0   $878,000   $576,618   $1,454,618  
             
   
Total  
$0   $878,000   $835,059   $1,713,059  
   
F.T.E.  
      3.0  
             
(3)   DEPARTMENT TOTAL, TOURISM        
    Personal Services   $0   $0   $1,937,317   $1,937,317  
   
Operating Expenses  
$0   $878,000   $13,729,317   $14,607,317  
             
   
TOTAL  
$0   $878,000   $15,666,634   $16,544,634  
   
F.T.E.  
      28.0  
             
SECTION 6. DEPARTMENT OF GAME, FISH AND PARKS      
(1)   Administration, Secretary of Game, Fish and Parks        
   
Personal Services  
$130,451   $0   $2,057,946   $2,188,397  
   
Operating Expenses  
$821,916   $0   $1,138,385   $1,960,301  
             
   
Total  
$952,367   $0   $3,196,331   $4,148,698  
   
F.T.E.  
      27.6  
             
(2)   Wildlife--Informational          
   
Personal Services  
$0   $4,044,760   $14,394,113   $18,438,873  
   
Operating Expenses  
$0   $13,537,861   $15,378,412   $28,916,273  
             
   
Total  
$0   $17,582,621   $29,772,525   $47,355,146  
   
F.T.E.  
      294.0  
             
(3)   Wildlife, Development and Improvement--Informational      
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $1,078,250   $694,335   $1,772,585  
             
   
Total  
$0   $1,078,250   $694,335   $1,772,585  
   
F.T.E.  
      0.0  
             
(4)   State Parks and Recreation          
   
Personal Services  
$2,620,093   $910,324   $7,023,154   $10,553,571  
   
Operating Expenses  
$2,605,378   $2,695,957   $8,222,590   $13,523,925  
             
   
Total  
$5,225,471   $3,606,281   $15,245,744   $24,077,496  
   
F.T.E.  
      248.2  
             
(5)   State Parks and Recreation, Development and Improvement      
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $2,694,950   $6,053,657   $8,748,607  
             
   
Total  
$0   $2,694,950   $6,053,657   $8,748,607  
   
F.T.E.  
      0.0  
             
(6)   Snowmobile Trails--Informational          
   
Personal Services  
$0   $0   $387,450   $387,450  
   
Operating Expenses  
$0   $0   $908,729   $908,729  
             
   
Total  
$0   $0   $1,296,179   $1,296,179  
   
F.T.E.  
      9.1  
             
(7)   DEPARTMENT TOTAL, GAME, FISH AND PARKS        
   
Personal Services  
$2,750,544   $4,955,084   $23,862,663   $31,568,291  
   
Operating Expenses  
$3,427,294   $20,007,018   $32,396,108   $55,830,420  
             
   
TOTAL  
$6,177,838   $24,962,102   $56,258,771   $87,398,711  
   
F.T.E.  
      578.9  
             
SECTION 7. DEPARTMENT OF TRIBAL RELATIONS        
(1)   Office of Tribal Relations          
   
Personal Services  
$412,361   $0   $0   $412,361  
   
Operating Expenses  
$98,589   $0   $20,000   $118,589  
             
   
Total  
$510,950   $0   $20,000   $530,950  
   
F.T.E.  
      6.0  
         
(2)   DEPARTMENT TOTAL, TRIBAL RELATIONS        
   
Personal Services  
$412,361   $0   $0   $412,361  
   
Operating Expenses  
$98,589   $0   $20,000   $118,589  
             
   
Total  
$510,950   $0   $20,000   $530,950  
   
F.T.E.  
      6.0  
             
SECTION 8. DEPARTMENT OF SOCIAL SERVICES        
(1)   Administration, Secretary of Social Services        
   
Personal Services  
$4,375,231   $5,712,079   $10,073   $10,097,383  
   
Operating Expenses  
$4,492,097   $10,678,024   $9,269   $15,179,390  
             
   
Total  
$8,867,328   $16,390,103   $19,342   $25,276,773  
   
F.T.E.  
      182.7  
             
(2)   Economic Assistance          
   
Personal Services  
$7,915,147   $11,433,186   $23,792   $19,372,125  
   
Operating Expenses  
$18,095,732   $48,726,588   $317,023   $67,139,343  
             
   
Total  
$26,010,879   $60,159,774   $340,815   $86,511,468  
   
F.T.E.  
      320.5  
             
(3)   Medical and Adult Services          
   
Personal Services  
$3,130,649   $6,509,584   $169,272   $9,809,505  
   
Operating Expenses  
$313,039,236   $485,793,720   $1,625,860   $800,458,816  
             
   
Total  
$316,169,885   $492,303,304   $1,795,132   $810,268,321  
   
F.T.E.  
      151.0  
             
(4)   Children's Services          
   
Personal Services  
$11,807,473   $9,537,514   $1,667,868   $23,012,855  
   
Operating Expenses  
$33,548,337   $37,685,165   $3,056,772   $74,290,274  
             
   
Total  
$45,355,810   $47,222,679   $4,724,640   $97,303,129  
   
F.T.E.  
      353.8  
             
(5)   Behavioral Health          
   
Personal Services  
$30,739,411   $10,092,089   $1,672,825   $42,504,325  
   
Operating Expenses  
$48,687,720   $27,536,915   $1,404,923   $77,629,558  
             
   
Total  
$79,427,131   $37,629,004   $3,077,748   $120,133,883  
   
F.T.E.  
      653.0  
             
(6)   Board of Counselor Examiners--Informational        
   
Personal Services  
$0   $0   $2,960   $2,960  
   
Operating Expenses  
$0   $0   $90,045   $90,045  
             
   
Total  
$0   $0   $93,005   $93,005  
   
F.T.E.  
      0.0  
             
(7)   Board of Psychology Examiners--Informational        
   
Personal Services  
$0   $0   $3,639   $3,639  
   
Operating Expenses  
$0   $0   $73,271   $73,271  
             
   
Total  
$0   $0   $76,910   $76,910  
   
F.T.E.  
      0.0  
             
(8)   Board of Social Work Examiners--Informational        
   
Personal Services  
$0   $0   $3,008   $3,008  
   
Operating Expenses  
$0   $0   $98,729   $98,729  
             
   
Total  
$0   $0   $101,737   $101,737  
   
F.T.E.  
      0.0  
             
(9)   Board of Addiction and Prevention Professionals--Informational      
   
Personal Services  
$0   $0   $108,143   $108,143  
   
Operating Expenses  
$0   $0   $58,124   $58,124  
             
   
Total  
$0   $0   $166,267   $166,267  
   
F.T.E.  
      1.3  
             
(10)   DEPARTMENT TOTAL, SOCIAL SERVICES        
   
Personal Services  
$57,967,911   $43,284,452   $3,661,580   $104,913,943  
   
Operating Expenses  
$417,863,122   $610,420,412   $6,734,016   $1,035,017,550  
             
   
TOTAL  
$475,831,033   $653,704,864   $10,395,596   $1,139,931,493  
   
F.T.E.  
      1,662.3  
             
SECTION 9. DEPARTMENT OF HEALTH        
(1)   Administration, Secretary of Health        
   
Personal Services  
$726,935   $993,417   $614,217   $2,334,569  
   
Operating Expenses  
$208,907   $690,500   $867,189   $1,766,596  
             
   
Total  
$935,842   $1,683,917   $1,481,406   $4,101,165  
   
F.T.E.  
      32.0  
             
(2)   Health Systems Development and Regulation        
   
Personal Services  
$2,072,550   $3,463,283   $63,949   $5,599,782  
   
Operating Expenses  
$1,431,195   $6,797,990   $3,085,407   $11,314,592  
             
   
Total  
$3,503,745   $10,261,273   $3,149,356   $16,914,374  
   
F.T.E.  
      70.0  
             
(3)   Family and Community Health          
   
Personal Services  
$2,196,518   $9,821,005   $1,333,485   $13,351,008  
   
Operating Expenses  
$1,883,073   $14,452,369   $4,625,776   $20,961,218  
             
   
Total  
$4,079,591   $24,273,374   $5,959,261   $34,312,226  
   
F.T.E.  
      188.5  
             
(4)   Laboratory Services          
   
Personal Services  
$0   $604,552   $1,509,971   $2,114,523  
   
Operating Expenses  
$0   $2,703,463   $1,916,315   $4,619,778  
             
   
Total  
$0   $3,308,015   $3,426,286   $6,734,301  
   
F.T.E.  
      28.0  
             
(5)   Correctional Health          
   
Personal Services  
$0   $0   $7,035,212   $7,035,212  
   
Operating Expenses  
$0   $0   $14,017,721   $14,017,721  
             
   
Total  
$0   $0   $21,052,933   $21,052,933  
   
F.T.E.  
      87.0  
             
(6)   Tobacco Prevention          
   
Personal Services  
$0   $238,505   $0   $238,505  
   
Operating Expenses  
$0   $1,314,180   $4,500,212   $5,814,392  
             
   
Total  
$0   $1,552,685   $4,500,212   $6,052,897  
   
F.T.E.  
      3.0  
             
(7)   Board of Chiropractic Examiners--Informational        
   
Personal Services  
$0   $0   $62,107   $62,107  
   
Operating Expenses  
$0   $0   $48,426   $48,426  
             
   
Total  
$0   $0   $110,533   $110,533  
   
F.T.E.  
      1.0  
             
(8)   Board of Dentistry--Informational          
   
Personal Services  
$0   $0   $7,059   $7,059  
   
Operating Expenses  
$0   $0   $329,110   $329,110  
             
   
Total  
$0   $0   $336,169   $336,169  
   
F.T.E.  
      0.0  
             
(9)   Board of Hearing Aid Dispensers--Informational        
   
Personal Services  
$0   $0   $1,184   $1,184  
   
Operating Expenses  
$0   $0   $23,703   $23,703  
             
   
Total  
$0   $0   $24,887   $24,887  
   
F.T.E.  
      0.0  
             
(10)   Board of Funeral Service--Informational        
   
Personal Services  
$0   $0   $9,176   $9,176  
   
Operating Expenses  
$0   $0   $64,472   $64,472  
             
   
Total  
$0   $0   $73,648   $73,648  
   
F.T.E.  
      0.0  
             
(11)   Board of Medical and Osteopathic Examiners--Informational      
   
Personal Services  
$0   $0   $409,885   $409,885  
   
Operating Expenses  
$0   $0   $615,818   $615,818  
             
   
Total  
$0   $0   $1,025,703   $1,025,703  
   
F.T.E.  
      7.0  
             
(12)   Board of Nursing--Informational          
   
Personal Services  
$0   $0   $650,248   $650,248  
   
Operating Expenses  
$0   $0   $669,880   $669,880  
             
   
Total  
$0   $0   $1,320,128   $1,320,128  
   
F.T.E.  
      9.0  
             
(13)   Board of Nursing Home Administrators--Informational        
   
Personal Services  
$0   $0   $2,297   $2,297  
   
Operating Expenses  
$0   $0   $57,087   $57,087  
             
   
Total  
$0   $0   $59,384   $59,384  
   
F.T.E.  
      0.0  
             
(14)   Board of Optometry--Informational        
   
Personal Services  
$0   $0   $1,096   $1,096  
   
Operating Expenses  
$0   $0   $68,350   $68,350  
             
   
Total  
$0   $0   $69,446   $69,446  
   
F.T.E.  
      0.0  
             
(15)   Board of Pharmacy--Informational        
   
Personal Services  
$0   $0   $488,045   $488,045  
   
Operating Expenses  
$0   $0   $647,875   $647,875  
             
   
Total  
$0   $0   $1,135,920   $1,135,920  
   
F.T.E.  
      5.9  
             
(16)   Board of Podiatry Examiners--Informational        
   
Personal Services  
$0   $0   $281   $281  
   
Operating Expenses  
$0   $0   $21,194   $21,194  
             
   
Total  
$0   $0   $21,475   $21,475  
   
F.T.E.  
      0.0  
             
(17)   Board of Massage Therapy--Informational        
   
Personal Services  
$0   $0   $1,339   $1,339  
   
Operating Expenses  
$0   $0   $85,640   $85,640  
             
   
Total  
$0   $0   $86,979   $86,979  
   
F.T.E.  
      0.0  
             
(18)   Board of Speech-Language Pathology--Informational        
   
Personal Services  
$0   $0   $1,095   $1,095  
   
Operating Expenses  
$0   $0   $45,112   $45,112  
             
   
Total  
$0   $0   $46,207   $46,207  
   
F.T.E.  
      0.0  
             
(19)   DEPARTMENT TOTAL, HEALTH        
   
Personal Services  
$4,996,003   $15,120,762   $12,190,646   $32,307,411  
   
Operating Expenses  
$3,523,175   $25,958,502   $31,689,287   $61,170,964  
             
   
TOTAL  
$8,519,178   $41,079,264   $43,879,933   $93,478,375  
   
F.T.E.  
      431.4  
             
SECTION 10. DEPARTMENT OF LABOR AND REGULATION      
(1)   Administration, Secretary of Labor        
   
Personal Services  
$39,370   $3,168,595   $158,814   $3,366,779  
   
Operating Expenses  
$618,064   $11,941,677   $225,045   $12,784,786  
             
   
Total  
$657,434   $15,110,272   $383,859   $16,151,565  
   
F.T.E.  
      52.5  
             
(2)   Unemployment Insurance Services          
   
Personal Services  
$0   $4,044,391   $335,058   $4,379,449  
   
Operating Expenses  
$0   $667,674   $8,050   $675,724  
             
   
Total  
$0   $4,712,065   $343,108   $5,055,173  
   
F.T.E.  
      79.0  
             
(3)   Field Operations          
   
Personal Services  
$526,992   $9,141,457   $0   $9,668,449  
   
Operating Expenses  
$114,798   $1,466,290   $0   $1,581,088  
             
   
Total  
$641,790   $10,607,747   $0   $11,249,537  
   
F.T.E.  
      166.0  
             
(4)   State Labor Law Administration          
   
Personal Services  
$606,377   $398,580   $246,800   $1,251,757  
   
Operating Expenses  
$96,716   $77,783   $244,949   $419,448  
             
   
Total  
$703,093   $476,363   $491,749   $1,671,205  
   
F.T.E.  
      19.0  
             
(5)   Board of Accountancy--Informational        
   
Personal Services  
$0   $0   $143,841   $143,841  
   
Operating Expenses  
$0   $0   $173,265   $173,265  
             
   
Total  
$0   $0   $317,106   $317,106  
   
F.T.E.  
      2.5  
             
(6)   Board of Barber Examiners--Informational        
   
Personal Services  
$0   $0   $2,459   $2,459  
   
Operating Expenses  
$0   $0   $26,534   $26,534  
             
   
Total  
$0   $0   $28,993   $28,993  
   
F.T.E.  
      0.0  
             
(7)   Cosmetology Commission--Informational        
   
Personal Services  
$0   $0   $182,742   $182,742  
   
Operating Expenses  
$0   $0   $122,006   $122,006  
             
   
Total  
$0   $0   $304,748   $304,748  
   
F.T.E.  
      3.6  
             
(8)   Plumbing Commission--Informational        
   
Personal Services  
$0   $0   $409,025   $409,025  
   
Operating Expenses  
$0   $0   $201,579   $201,579  
             
   
Total  
$0   $0   $610,604   $610,604  
   
F.T.E.  
      7.0  
             
(9)   Board of Technical Professions--Informational        
   
Personal Services  
$0   $0   $181,539   $181,539  
   
Operating Expenses  
$0   $0   $183,305   $183,305  
             
   
Total  
$0   $0   $364,844   $364,844  
   
F.T.E.  
      3.5  
             
(10)   Electrical Commission--Informational        
   
Personal Services  
$0   $0   $1,171,723   $1,171,723  
   
Operating Expenses  
$0   $0   $488,233   $488,233  
             
   
Total  
$0   $0   $1,659,956   $1,659,956  
   
F.T.E.  
      22.0  
             
(11)   Real Estate Commission--Informational        
   
Personal Services  
$0   $0   $338,434   $338,434  
   
Operating Expenses  
$0   $0   $230,805   $230,805  
             
   
Total  
$0   $0   $569,239   $569,239  
   
F.T.E.  
      5.0  
             
(12)   Abstracters Board of Examiners--Informational        
   
Personal Services  
$0   $0   $17,386   $17,386  
   
Operating Expenses  
$0   $0   $9,578   $9,578  
             
   
Total  
$0   $0   $26,964   $26,964  
   
F.T.E.  
      0.0  
             
(13)   South Dakota Athletic Commission--Informational        
   
Personal Services  
$0   $0   $8,187   $8,187  
   
Operating Expenses  
$0   $0   $47,343   $47,343  
             
   
Total  
$0   $0   $55,530   $55,530  
   
F.T.E.  
      0.0  
             
(14)   Banking          
   
Personal Services  
$0   $0   $2,252,319   $2,252,319  
   
Operating Expenses  
$0   $0   $636,227   $636,227  
             
   
Total  
$0   $0   $2,888,546   $2,888,546  
   
F.T.E.  
      28.5  
             
(15)   Trust Captive Insurance Company - Informational        
   
Personal Services  
$0   $0   $15,000   $15,000  
   
Operating Expenses  
$0   $0   $258,750   $258,750  
             
   
Total  
$0   $0   $273,750   $273,750  
   
F.T.E.  
      0.0  
             
(16)   Securities          
   
Personal Services  
$0   $0   $425,502   $425,502  
   
Operating Expenses  
$0   $0   $84,473   $84,473  
             
   
Total  
$0   $0   $509,975   $509,975  
   
F.T.E.  
      5.7  
             
(17)   Insurance          
   
Personal Services  
$0   $154,668   $1,971,733   $2,126,401  
   
Operating Expenses  
$0   $389,961   $359,386   $749,347  
             
   
Total  
$0   $544,629   $2,331,119   $2,875,748  
   
F.T.E.  
      30.0  
             
(18)   South Dakota Retirement System          
   
Personal Services  
$0   $0   $2,540,250   $2,540,250  
   
Operating Expenses  
$0   $0   $1,781,742   $1,781,742  
             
   
Total  
$0   $0   $4,321,992   $4,321,992  
   
F.T.E.  
      33.0  
             
(19)   DEPARTMENT TOTAL, LABOR AND REGULATION      
   
Personal Services  
$1,172,739   $16,907,691   $10,400,812   $28,481,242  
   
Operating Expenses  
$829,578   $14,543,385   $5,081,270   $20,454,233  
             
   
TOTAL  
$2,002,317   $31,451,076   $15,482,082   $48,935,475  
   
F.T.E.  
      457.3  
             
SECTION 11. DEPARTMENT OF TRANSPORTATION        
(1)   General Operations          
   
Personal Services  
$509,754   $11,056,305   $58,290,877   $69,856,936  
   
Operating Expenses  
$25,502   $30,121,451   $95,184,531   $125,331,484  
             
   
Total  
$535,256   $41,177,756   $153,475,408   $195,188,420  
   
F.T.E.  
      1,026.3  
             
(2)   Construction Contracts--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $347,068,873   $144,544,285   $491,613,158  
             
   
Total  
$0   $347,068,873   $144,544,285   $491,613,158  
   
F.T.E.  
      0.0  
             
(3)   DEPARTMENT TOTAL, TRANSPORTATION        
   
Personal Services  
$509,754   $11,056,305   $58,290,877   $69,856,936  
   
Operating Expenses  
$25,502   $377,190,324   $239,728,816   $616,944,642  
             
   
Total  
$535,256   $388,246,629   $298,019,693   $686,801,578  
   
F.T.E.  
      1,026.3  
             
SECTION 12. DEPARTMENT OF EDUCATION        
(1)   Administration, Secretary of Education        
   
Personal Services  
$1,641,691   $1,337,342   $74,692   $3,053,725  
   
Operating Expenses  
$1,137,999   $5,427,935   $136,099   $6,702,033  
             
   
Total  
$2,779,690   $6,765,277   $210,791   $9,755,758  
   
F.T.E.  
      41.0  
             
(2)   Workforce Education Fund--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,500,000   $2,500,000  
             
   
Total  
$0   $0   $2,500,000   $2,500,000  
   
F.T.E.  
      0.0  
             
(3)   State Aid to General Education          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$448,404,255   $0   $0   $448,404,255  
             
   
Total  
$448,404,255   $0   $0   $448,404,255  
   
F.T.E.  
      0.0  
             
(4)   State Aid to Special Education          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$63,646,857   $0   $0   $63,646,857  
             
   
Total  
$63,646,857   $0   $0   $63,646,857  
   
F.T.E.  
      0.0  
             
(5)   Sparsity Payments          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$2,009,669   $0   $0   $2,009,669  
             
   
Total  
$2,009,669   $0   $0   $2,009,669  
   
F.T.E.  
      0.0  
             
(6)   National Board Certified Teachers          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$150,000   $0   $0   $150,000  
             
   
Total  
$150,000   $0   $0   $150,000  
   
F.T.E.  
      0.0  
             
(7)   Technology and Innovation in Schools        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$13,281,276   $0   $1,822,505   $15,103,781  
             
   
Total  
$13,281,276   $0   $1,822,505   $15,103,781  
   
F.T.E.  
      0.0  
             
(8)   Postsecondary Vocational Education        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$23,076,976   $0   $0   $23,076,976  
             
   
Total  
$23,076,976   $0   $0   $23,076,976  
   
F.T.E.  
      0.0  
             
(9)   Postsecondary Voc Ed Tuition Assistance        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$1,831,820   $0   $0   $1,831,820  
             
   
Total  
$1,831,820   $0   $0   $1,831,820  
   
F.T.E.  
      0.0  
             
(10)   Postsecondary Instructor Salary Enhancements        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$3,000,000   $0   $0   $3,000,000  
             
   
Total  
$3,000,000   $0   $0   $3,000,000  
   
F.T.E.  
      0.0  
             
(11)   Education Resources          
   
Personal Services  
$1,747,916   $3,191,007   $302,260   $5,241,183  
   
Operating Expenses  
$7,311,365   $175,417,825   $847,960   $183,577,150  
             
   
Total  
$9,059,281   $178,608,832   $1,150,220   $188,818,333  
   
F.T.E.  
      75.5  
             
(12)   History          
   
Personal Services  
$952,947   $400,821   $1,294,584   $2,648,352  
   
Operating Expenses  
$1,195,233   $553,499   $1,247,500   $2,996,232  
             
   
Total  
$2,148,180   $954,320   $2,542,084   $5,644,584  
   
F.T.E.  
      44.0  
             
(13)   State Library          
    Personal Services   $1,017,375   $343,658   $0   $1,361,033  
   
Operating Expenses  
$854,398   $889,287   $27,900   $1,771,585  
             
   
Total  
$1,871,773   $1,232,945   $27,900   $3,132,618  
   
F.T.E.  
      23.5  
             
(14)   DEPARTMENT TOTAL, EDUCATION        
    Personal Services   $5,359,929   $5,272,828   $1,671,536   $12,304,293  
   
Operating Expenses  
$565,899,848   $182,288,546   $6,581,964   $754,770,358  
             
   
Total  
$571,259,777   $187,561,374   $8,253,500   $767,074,651  
   
F.T.E.  
      184.0  
             
SECTION 13. DEPARTMENT OF PUBLIC SAFETY        
(1)   Administration, Secretary of Public Safety        
   
Personal Services  
$125,747   $89,702   $469,090   $684,539  
   
Operating Expenses  
$14,574   $0   $140,028   $154,602  
             
   
Total  
$140,321   $89,702   $609,118   $839,141  
   
F.T.E.  
      8.5  
             
(2)   Highway Patrol          
   
Personal Services  
$482,928   $1,576,977   $16,221,294   $18,281,199  
   
Operating Expenses  
$907,916   $5,314,919   $6,834,342   $13,057,177  
             
   
Total  
$1,390,844   $6,891,896   $23,055,636   $31,338,376  
   
F.T.E.  
      276.0  
             
(3)   Emergency Services & Homeland Security        
   
Personal Services  
$963,622   $1,408,723   $86,941   $2,459,286  
   
Operating Expenses  
$374,771   $8,810,806   $180,825   $9,366,402  
             
   
Total  
$1,338,393   $10,219,529   $267,766   $11,825,688  
   
F.T.E.  
      30.5  
             
(4)   Legal and Regulatory Services        
   
Personal Services  
$67,606   $8,500   $4,678,882   $4,754,988  
   
Operating Expenses  
$719,578   $322,353   $2,932,365   $3,974,296  
             
   
Total  
$787,184   $330,853   $7,611,247   $8,729,284  
   
F.T.E.  
      95.5  
             
(5)   911 Coordination Board--Informational        
    Personal Services   $0   $0   $110,201   $110,201  
   
Operating Expenses  
$0   $0   $3,795,611   $3,795,611  
             
   
Total  
$0   $0   $3,905,812   $3,905,812  
   
F.T.E.  
      1.0  
             
(6)   DEPARTMENT TOTAL, PUBLIC SAFETY        
    Personal Services   $1,639,903   $3,083,902   $21,566,408   $26,290,213  
   
Operating Expenses  
$2,016,839   $14,448,078   $13,883,171   $30,348,088  
             
   
Total  
$3,656,742   $17,531,980   $35,449,579   $56,638,301  
   
F.T.E.  
      411.5  
             
SECTION 14. BOARD OF REGENTS          
(1)   Regents Central Office          
   
Personal Services  
$4,711,944   $0   $2,158,272   $6,870,216  
   
Operating Expenses  
$14,850,076   $574,450   $43,423,273   $58,847,799  
             
   
Total  
$19,562,020   $574,450   $45,581,545   $65,718,015  
   
F.T.E.  
      70.3  
             
(2)   Research Pool          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$1,000,000   $0   $0   $1,000,000  
             
   
Total  
$1,000,000   $0   $0   $1,000,000  
   
F.T.E.  
      0.0  
             
(3)   South Dakota Scholarships          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$5,525,976   $0   $0   $5,525,976  
             
   
Total  
$5,525,976   $0   $0   $5,525,976  
   
F.T.E.  
      0.0  
             
(4)   University of South Dakota Proper        
   
Personal Services  
$32,676,112   $5,145,206   $51,708,325   $89,529,643  
   
Operating Expenses  
$4,042,669   $8,292,837   $40,291,723   $52,627,229  
             
   
Total  
$36,718,781   $13,438,043   $92,000,048   $142,156,872  
   
F.T.E.  
      1,107.2  
             
(5)   University of South Dakota School of Medicine        
   
Personal Services  
$18,752,164   $3,488,188   $9,363,347   $31,603,699  
   
Operating Expenses  
$3,376,579   $8,373,419   $9,510,185   $21,260,183  
             
   
Total  
$22,128,743   $11,861,607   $18,873,532   $52,863,882  
   
F.T.E.  
      321.5  
             
(6)   South Dakota State University Proper        
   
Personal Services  
$40,625,508   $8,534,785   $84,860,853   $134,021,146  
   
Operating Expenses  
$6,499,577   $27,109,691   $82,425,518   $116,034,786  
             
   
Total  
$47,125,085   $35,644,476   $167,286,371   $250,055,932  
   
F.T.E.  
      1,617.7  
             
(7)   SDSU Extension          
   
Personal Services  
$8,132,618   $3,762,133   $1,067,120   $12,961,871  
   
Operating Expenses  
$329,154   $4,727,508   $1,336,053   $6,392,715  
             
   
Total  
$8,461,772   $8,489,641   $2,403,173   $19,354,586  
   
F.T.E.  
      190.4  
             
(8)   Agricultural Experiment Station          
   
Personal Services  
$11,302,509   $5,723,505   $4,565,105   $21,591,119  
   
Operating Expenses  
$627,155   $11,960,134   $10,751,541   $23,338,830  
             
   
Total  
$11,929,664   $17,683,639   $15,316,646   $44,929,949  
   
F.T.E.  
      270.5  
             
(9)   South Dakota School of Mines and Technology        
   
Personal Services  
$15,741,535   $3,674,583   $20,509,113   $39,925,231  
   
Operating Expenses  
$992,905   $30,458,296   $20,498,867   $51,950,068  
             
   
Total  
$16,734,440   $34,132,879   $41,007,980   $91,875,299  
   
F.T.E.  
      433.4  
             
(10)   Northern State University          
   
Personal Services  
$12,990,842   $1,232,776   $12,474,138   $26,697,756  
   
Operating Expenses  
$1,399,370   $722,202   $11,819,936   $13,941,508  
             
   
Total  
$14,390,212   $1,954,978   $24,294,074   $40,639,264  
   
F.T.E.  
      351.0  
             
(11)   Black Hills State University          
   
Personal Services  
$8,479,435   $1,841,027   $19,750,743   $30,071,205  
   
Operating Expenses  
$743,253   $3,073,936   $12,894,240   $16,711,429  
             
   
Total  
$9,222,688   $4,914,963   $32,644,983   $46,782,634  
   
F.T.E.  
      418.5  
             
(12)   Dakota State University          
   
Personal Services  
$8,751,091   $632,432   $13,282,397   $22,665,920  
   
Operating Expenses  
$685,066   $4,899,039   $10,675,824   $16,259,929  
             
   
Total  
$9,436,157   $5,531,471   $23,958,221   $38,925,849  
   
F.T.E.  
      288.8  
             
(13)   South Dakota School for the Deaf        
   
Personal Services  
$1,621,303   $0   $0   $1,621,303  
   
Operating Expenses  
$1,149,224   $0   $667,252   $1,816,476  
             
   
Total  
$2,770,527   $0   $667,252   $3,437,779  
   
F.T.E.  
      22.5  
             
(14)   South Dakota School for the Blind and Visually Impaired        
    Personal Services   $2,643,735   $212,317   $44,595   $2,900,647  
   
Operating Expenses  
$259,682   $37,683   $395,795   $693,160  
             
   
Total  
$2,903,417   $250,000   $440,390   $3,593,807  
   
F.T.E.  
      48.6  
             
(15)   DEPARTMENT TOTAL, BOARD OF REGENTS        
    Personal Services   $166,428,796   $34,246,952   $219,784,008   $420,459,756  
   
Operating Expenses  
$41,480,686   $100,229,195   $244,690,207   $386,400,088  
             
   
Total  
$207,909,482   $134,476,147   $464,474,215   $806,859,844  
   
F.T.E.  
      5,140.4  
             
SECTION 15. DEPARTMENT OF THE MILITARY        
(1)   Adjutant General          
   
Personal Services  
$417,112   $0   $18,856   $435,968  
   
Operating Expenses  
$131,994   $10,306   $10,021   $152,321  
             
   
Total  
$549,106   $10,306   $28,877   $588,289  
   
F.T.E.  
      5.3  
             
(2)   Army Guard          
   
Personal Services  
$400,556   $2,467,329   $0   $2,867,885  
   
Operating Expenses  
$2,584,455   $12,671,620   $0   $15,256,075  
             
   
Total  
$2,985,011   $15,138,949   $0   $18,123,960  
   
F.T.E.  
      52.1  
             
(3)   Air Guard          
    Personal Services   $196,287   $2,734,202   $0   $2,930,489  
   
Operating Expenses  
$238,382   $2,689,403   $0   $2,927,785  
             
   
Total  
$434,669   $5,423,605   $0   $5,858,274  
   
F.T.E.  
      48.0  
             
(4)   DEPARTMENT TOTAL, MILITARY        
    Personal Services   $1,013,955   $5,201,531   $18,856   $6,234,342  
   
Operating Expenses  
$2,954,831   $15,371,329   $10,021   $18,336,181  
             
   
Total  
$3,968,786   $20,572,860   $28,877   $24,570,523  
   
F.T.E.  
      105.4  
             
SECTION 16. DEPARTMENT OF VETERANS' AFFAIRS        
(1)   Veterans' Benefits and Services          
   
Personal Services  
$1,096,470   $225,740   $0   $1,322,210  
   
Operating Expenses  
$423,558   $49,783   $106,000   $579,341  
             
   
Total  
$1,520,028   $275,523   $106,000   $1,901,551  
   
F.T.E.  
      20.0  
             
(2)   State Veterans' Home          
    Personal Services   $1,564,434   $1,844,662   $2,671,156   $6,080,252  
   
Operating Expenses  
$29,023   $0   $3,390,860   $3,419,883  
             
   
Total  
$1,593,457   $1,844,662   $6,062,016   $9,500,135  
   
F.T.E.  
      118.2  
             
(3)   DEPARTMENT TOTAL, VETERANS' AFFAIRS        
    Personal Services   $2,660,904   $2,070,402   $2,671,156   $7,402,462  
   
Operating Expenses  
$452,581   $49,783   $3,496,860   $3,999,224  
             
   
Total  
$3,113,485   $2,120,185   $6,168,016   $11,401,686  
   
F.T.E.  
      138.2  
             
SECTION 17. DEPARTMENT OF CORRECTIONS        
(1)   Administration, Central Office          
   
Personal Services  
$1,640,393   $99,345   $0   $1,739,738  
   
Operating Expenses  
$1,117,635   $864,556   $0   $1,982,191  
             
   
Total  
$2,758,028   $963,901   $0   $3,721,929  
   
F.T.E.  
      22.0  
             
(2)   Mike Durfee State Prison          
   
Personal Services  
$11,535,027   $45,152   $0   $11,580,179  
   
Operating Expenses  
$6,056,227   $35,858   $0   $6,092,085  
             
   
Total  
$17,591,254   $81,010   $0   $17,672,264  
   
F.T.E.  
      210.0  
             
(3)   State Penitentiary          
   
Personal Services  
$17,273,472   $53,864   $0   $17,327,336  
   
Operating Expenses  
$6,459,781   $64,747   $0   $6,524,528  
             
   
Total  
$23,733,253   $118,611   $0   $23,851,864  
   
F.T.E.  
      312.0  
             
(4)   Women's Prison          
   
Personal Services  
$3,828,620   $57,746   $0   $3,886,366  
   
Operating Expenses  
$1,591,939   $9,508   $0   $1,601,447  
             
   
Total  
$5,420,559   $67,254   $0   $5,487,813  
   
F.T.E.  
      70.0  
             
(5)   Pheasantland Industries          
   
Personal Services  
$0   $0   $1,007,493   $1,007,493  
   
Operating Expenses  
$0   $0   $2,658,121   $2,658,121  
             
   
Total  
$0   $0   $3,665,614   $3,665,614  
   
F.T.E.  
      16.0  
             
(6)   Inmate Services          
   
Personal Services  
$1,428,912   $78,286   $0   $1,507,198  
   
Operating Expenses  
$23,681,835   $295,534   $0   $23,977,369  
             
   
Total  
$25,110,747   $373,820   $0   $25,484,567  
   
F.T.E.  
      24.0  
             
(7)   Parole Services          
   
Personal Services  
$3,445,294   $0   $0   $3,445,294  
   
Operating Expenses  
$1,935,019   $0   $0   $1,935,019  
             
   
Total  
$5,380,313   $0   $0   $5,380,313  
   
F.T.E.  
      57.0  
             
(8)   Juvenile Community Corrections          
   
Personal Services  
$2,461,475   $0   $0   $2,461,475  
   
Operating Expenses  
$10,984,478   $3,925,848   $0   $14,910,326  
             
   
Total  
$13,445,953   $3,925,848   $0   $17,371,801  
   
F.T.E.  
      40.0  
             
(9)   Youth Challenge Center          
   
Personal Services  
$392,351   $0   $0   $392,351  
   
Operating Expenses  
$90,049   $0   $0   $90,049  
             
   
Total  
$482,400   $0   $0   $482,400  
   
F.T.E.  
      5.0  
             
(10)   Patrick Henry Brady Academy          
   
Personal Services  
$394,648   $0   $0   $394,648  
   
Operating Expenses  
$71,661   $0   $0   $71,661  
             
   
Total  
$466,309   $0   $0   $466,309  
   
F.T.E.  
      5.0  
             
(11)   State Treatment and Rehabilitation Academy        
   
Personal Services  
$1,687,791   $0   $0   $1,687,791  
   
Operating Expenses  
$987,100   $467,943   $0   $1,455,043  
             
   
Total  
$2,674,891   $467,943   $0   $3,142,834  
   
F.T.E.  
      26.0  
             
(12)   QUEST          
    Personal Services   $122,912   $0   $0   $122,912  
   
Operating Expenses  
$72,279   $0   $0   $72,279  
             
   
Total  
$195,191   $0   $0   $195,191  
   
F.T.E.  
      2.0  
             
(13)   DEPARTMENT TOTAL, CORRECTIONS        
    Personal Services   $44,210,895   $334,393   $1,007,493   $45,552,781  
   
Operating Expenses  
$53,048,003   $5,663,994   $2,658,121   $61,370,118  
             
   
Total  
$97,258,898   $5,998,387   $3,665,614   $106,922,899  
   
F.T.E.  
      789.0  
             
SECTION 18. DEPARTMENT OF HUMAN SERVICES        
(1)   Administration, Secretary of Human Services        
   
Personal Services  
$630,375   $558,680   $0   $1,189,055  
   
Operating Expenses  
$289,115   $142,393   $1,421   $432,929  
             
   
Total  
$919,490   $701,073   $1,421   $1,621,984  
   
F.T.E.  
      17.0  
             
(2)   Developmental Disabilities          
   
Personal Services  
$704,324   $693,476   $0   $1,397,800  
   
Operating Expenses  
$60,303,826   $76,879,780   $5,748,659   $142,932,265  
             
   
Total  
$61,008,150   $77,573,256   $5,748,659   $144,330,065  
   
F.T.E.  
      20.5  
             
(3)   South Dakota Developmental Center--Redfield        
   
Personal Services  
$9,210,169   $10,896,459   $0   $20,106,628  
   
Operating Expenses  
$2,288,962   $2,742,261   $794,724   $5,825,947  
             
   
Total  
$11,499,131   $13,638,720   $794,724   $25,932,575  
   
F.T.E.  
      377.6  
             
(4)   Rehabilitation Services          
   
Personal Services  
$866,224   $5,260,294   $0   $6,126,518  
   
Operating Expenses  
$3,824,211   $11,141,847   $1,493,424   $16,459,482  
             
   
Total  
$4,690,435   $16,402,141   $1,493,424   $22,586,000  
   
F.T.E.  
      101.1  
             
(5)   Telecommunications Services for the Deaf        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $1,301,680   $1,301,680  
             
   
Total  
$0   $0   $1,301,680   $1,301,680  
   
F.T.E.  
      0.0  
             
(6)   Services to the Blind and Visually Impaired        
    Personal Services   $491,232   $1,210,141   $178,523   $1,879,896  
   
Operating Expenses  
$462,175   $1,404,146   $203,032   $2,069,353  
             
   
Total  
$953,407   $2,614,287   $381,555   $3,949,249  
   
F.T.E.  
      29.2  
             
(7)   DEPARTMENT TOTAL, HUMAN SERVICES        
    Personal Services   $11,902,324   $18,619,050   $178,523   $30,699,897  
   
Operating Expenses  
$67,168,289   $92,310,427   $9,542,940   $169,021,656  
             
   
Total  
$79,070,613   $110,929,477   $9,721,463   $199,721,553  
   
F.T.E.  
      545.4  
             
SECTION 19. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES    
(1)   Financial and Technical Assistance          
   
Personal Services  
$2,128,638   $1,630,514   $721,098   $4,480,250  
   
Operating Expenses  
$356,029   $623,781   $286,324   $1,266,134  
             
   
Total  
$2,484,667   $2,254,295   $1,007,422   $5,746,384  
   
F.T.E.  
      56.5  
             
(2)   Environmental Services          
   
Personal Services  
$3,365,435   $3,926,133   $2,365,143   $9,656,711  
   
Operating Expenses  
$595,313   $2,122,193   $876,631   $3,594,137  
             
   
Total  
$3,960,748   $6,048,326   $3,241,774   $13,250,848  
   
F.T.E.  
      119.0  
             
(3)   Regulated Response Fund--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $1,750,002   $1,750,002  
             
   
Total  
$0   $0   $1,750,002   $1,750,002  
   
F.T.E.  
      0.0  
             
(4)   Livestock Cleanup Fund--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $765,000   $765,000  
             
   
Total  
$0   $0   $765,000   $765,000  
   
F.T.E.  
      0.0  
             
(5)   Petroleum Release Compensation          
   
Personal Services  
$0   $0   $402,528   $402,528  
   
Operating Expenses  
$0   $0   $69,892   $69,892  
             
   
Total  
$0   $0   $472,420   $472,420  
   
F.T.E.  
      5.0  
             
(6)   Petroleum Release Compensation--Informational        
    Personal Services   $0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,100,000   $2,100,000  
             
   
Total  
$0   $0   $2,100,000   $2,100,000  
   
F.T.E.  
      0.0  
             
(7)   DEPARTMENT TOTAL, ENVIRONMENT AND NATURAL RESOURCES      
    Personal Services   $5,494,073   $5,556,647   $3,488,769   $14,539,489  
   
Operating Expenses  
$951,342   $2,745,974   $5,847,849   $9,545,165  
             
   
Total  
$6,445,415   $8,302,621   $9,336,618   $24,084,654  
   
F.T.E.  
      180.5  
             
SECTION 20. PUBLIC UTILITIES COMMISSION        
(1)   Public Utilities Commission          
    Personal Services   $512,602   $192,604   $2,247,648   $2,952,854  
   
Operating Expenses  
$53,084   $102,700   $1,459,283   $1,615,067  
             
   
Total  
$565,686   $295,304   $3,706,931   $4,567,921  
   
F.T.E.  
      31.2  
             
(2)   DEPARTMENT TOTAL, PUBLIC UTILITIES COMMISSION      
    Personal Services   $512,602   $192,604   $2,247,648   $2,952,854  
   
Operating Expenses  
$53,084   $102,700   $1,459,283   $1,615,067  
             
   
Total  
$565,686   $295,304   $3,706,931   $4,567,921  
   
F.T.E.  
      31.2  
             
SECTION 21. UNIFIED JUDICIAL SYSTEM        
(1)   State Bar of South Dakota--Informational        
   
Personal Services  
$0   $0   $232,635   $232,635  
    Operating Expenses   $0   $0   $334,689   $334,689  
             
   
Total  
$0   $0   $567,324   $567,324  
   
F.T.E.  
      3.0  
             
(2)   Unified Judicial System          
   
Personal Services  
$38,367,002   $388,366   $2,608,875   $41,364,243  
   
Operating Expenses  
$4,353,785   $389,239   $6,260,237   $11,003,261  
             
   
Total  
$42,720,787   $777,605   $8,869,112   $52,367,504  
   
F.T.E.  
      576.4  
             
(3)   DEPARTMENT TOTAL, UNIFIED JUDICIAL SYSTEM      
   
Personal Services  
$38,367,002   $388,366   $2,841,510   $41,596,878  
   
Operating Expenses  
$4,353,785   $389,239   $6,594,926   $11,337,950  
             
   
Total  
$42,720,787   $777,605   $9,436,436   $52,934,828  
   
F.T.E.  
      579.4  
             
SECTION 22. LEGISLATURE          
(1)   Legislative Operations          
   
Appropriation  
$6,001,295   $0   $6,000   $6,007,295  
    F.T.E.         31.6  
             
(2)   Legislative Contingency Fund          
   
Legislative Operations  
       
   
Appropriation  
$0   $0   $1,000,000   $1,000,000  
   
F.T.E.  
      0.0  
             
(3)   Auditor General          
   
Personal Services  
$3,209,515   $0   $120,000   $3,329,515  
    Operating Expenses   $349,336   $0   $12,000   $361,336  
             
   
Total  
$3,558,851   $0   $132,000   $3,690,851  
   
F.T.E.  
      41.0  
             
(4)   DEPARTMENT TOTAL, LEGISLATURE        
   
Personal Services  
$3,209,515   $0   $120,000   $3,329,515  
    Operating Expenses   $349,336   $0   $12,000   $361,336  
   
Legislative Operations Appropriation  
$6,001,295   $0   $1,006,000   $7,007,295  
             
   
TOTAL  
$9,560,146   $0   $1,138,000   $10,698,146  
   
F.T.E.  
      72.6  
             
SECTION 23. ATTORNEY GENERAL          
(1)   Legal Services Program          
   
Personal Services  
$4,302,854   $394,966   $1,354,838   $6,052,658  
   
Operating Expenses  
$579,363   $500,975   $1,053,020   $2,133,358  
             
   
Total  
$4,882,217   $895,941   $2,407,858   $8,186,016  
   
F.T.E.  
      68.0  
             
(2)   Criminal Investigation          
   
Personal Services  
$4,325,225   $1,184,618   $2,584,299   $8,094,142  
   
Operating Expenses  
$1,325,207   $2,050,441   $2,802,301   $6,177,949  
             
   
Total  
$5,650,432   $3,235,059   $5,386,600   $14,272,091  
   
F.T.E.  
      96.5  
             
(3)   Law Enforcement Training          
   
Personal Services  
$0   $0   $796,185   $796,185  
   
Operating Expenses  
$480,730   $0   $1,003,733   $1,484,463  
             
   
Total  
$480,730   $0   $1,799,918   $2,280,648  
   
F.T.E.  
      11.5  
             
(4)   911 Training          
   
Personal Services  
$0   $0   $125,300   $125,300  
   
Operating Expenses  
$0   $0   $98,656   $98,656  
             
   
Total  
$0   $0   $223,956   $223,956  
   
F.T.E.  
      2.0  
             
(5)   Insurance Fraud Unit--Informational        
    Personal Services   $0   $0   $188,095   $188,095  
   
Operating Expenses  
$0   $0   $70,667   $70,667  
             
   
Total  
$0   $0   $258,762   $258,762  
   
F.T.E.  
      3.0  
             
(6)   DEPARTMENT TOTAL, ATTORNEY GENERAL        
    Personal Services   $8,628,079   $1,579,584   $5,048,717   $15,256,380  
   
Operating Expenses  
$2,385,300   $2,551,416   $5,028,377   $9,965,093  
             
   
Total  
$11,013,379   $4,131,000   $10,077,094   $25,221,473  
   
F.T.E.  
      181.0  
             
SECTION 24. SCHOOL AND PUBLIC LANDS        
(1)   Administration of School and Public Lands        
    Personal Services   $407,577   $0   $26,800   $434,377  
   
Operating Expenses  
$141,019   $0   $246,150   $387,169  
             
   
Total  
$548,596   $0   $272,950   $821,546  
   
F.T.E.  
      6.0  
             
(2)   DEPARTMENT TOTAL, SCHOOL AND PUBLIC LANDS      
    Personal Services   $407,577   $0   $26,800   $434,377  
   
Operating Expenses  
$141,019   $0   $246,150   $387,169  
             
   
Total  
$548,596   $0   $272,950   $821,546  
   
F.T.E.  
      6.0  
             
SECTION 25. SECRETARY OF STATE        
(1)   Secretary of State          
    Personal Services   $822,185   $96,324   $175,224   $1,093,733  
   
Operating Expenses  
$442,063   $1,911,925   $309,776   $2,663,764  
             
   
Total  
$1,264,248   $2,008,249   $485,000   $3,757,497  
   
F.T.E.  
      15.6  
             
(2)   DEPARTMENT TOTAL, SECRETARY OF STATE        
    Personal Services   $822,185   $96,324   $175,224   $1,093,733  
   
Operating Expenses  
$442,063   $1,911,925   $309,776   $2,663,764  
             
   
Total  
$1,264,248   $2,008,249   $485,000   $3,757,497  
   
F.T.E.  
      15.6  
             
SECTION 26. STATE TREASURER          
(1)   Treasury Management          
   
Personal Services  
$386,957   $0   $0   $386,957  
   
Operating Expenses  
$145,938   $0   $0   $145,938  
             
   
Total  
$532,895   $0   $0   $532,895  
   
F.T.E.  
      5.2  
             
(2)   Unclaimed Property--Informational        
   
Personal Services  
$0   $0   $291,221   $291,221  
   
Operating Expenses  
$0   $0   $16,623,374   $16,623,374  
             
   
Total  
$0   $0   $16,914,595   $16,914,595  
   
F.T.E.  
      3.8  
             
(3)   Investment of State Funds          
   
Personal Services  
$0   $0   $6,218,599   $6,218,599  
   
Operating Expenses  
$0   $0   $1,798,929   $1,798,929  
             
   
Total  
$0   $0   $8,017,528   $8,017,528  
   
F.T.E.  
      32.3  
             
(4)   Performance Based Compensation          
    Personal Services   $0   $0   $10,152,724   $10,152,724  
   
Operating Expenses  
$0   $0   $0   $0  
             
   
Total  
$0   $0   $10,152,724   $10,152,724  
   
F.T.E.  
      0.0  
             
(5)   DEPARTMENT TOTAL, STATE TREASURER        
    Personal Services   $386,957   $0   $16,662,544   $17,049,501  
   
Operating Expenses  
$145,938   $0   $18,422,303   $18,568,241  
             
   
Total  
$532,895   $0   $35,084,847   $35,617,742  
   
F.T.E.  
      41.3  
             
SECTION 27. STATE AUDITOR          
(1)   State Auditor          
   
Personal Services  
$1,105,644   $0   $0   $1,105,644  
   
Operating Expenses  
$145,404   $0   $100,000   $245,404  
             
   
Total  
$1,251,048   $0   $100,000   $1,351,048  
   
F.T.E.  
      16.0  
             
(2)   DEPARTMENT TOTAL, STATE AUDITOR        
    Personal Services   $1,105,644   $0   $0   $1,105,644  
   
Operating Expenses  
$145,404   $0   $100,000   $245,404  
             
   
Total  
$1,251,048   $0   $100,000   $1,351,048  
   
F.T.E.  
      16.0  
             
             
SECTION 28. STATE TOTAL          
(1)     Personal Services   $386,273,168   $179,000,707   $467,574,271   $1,032,848,146  
   
Operating Expenses  
$1,202,708,458   $1,482,084,518   $841,359,148   $3,526,152,124  
   
Single Line Item Appropriation  
$6,001,295   $0   $1,006,000   $7,007,295  
             
   
TOTAL  
$1,594,982,921   $1,661,085,225   $1,309,939,419   $4,566,007,565  
   
F.T.E.  
      13,900.4  

    Section 29. The state treasurer shall transfer to the state general fund money from the following

funds for the purposes herein indicated:
    From the state highway fund:    
Radio Communications Operations   $3,347,007  
Governor's Office Operations   $107,183  
    From the game, fish and parks fund:    
Radio Communications Operations   $438,811  
From the game, fish and parks administrative revolving fund:  
Governor's Office Operations   $18,048  
    From the motor vehicle fund:    
Radio Communications Operations   $603,014  

    Section 30. The state treasurer shall transfer to the state general fund money from the dakota cement trust fund, the amount identified by notice of the state investment officer pursuant to S.D. Const., Art. XIII, § 21, for the Department of Education - state aid to education.
    Section 31. The state treasurer shall transfer to the state general fund money from the health care trust fund, the amount identified by notice of the state investment officer pursuant to § 4-5-29.1, for the Department of Social Services - medical services.
    Section 32. The state treasurer shall transfer to the state general fund money from the education enhancement trust fund, the amount identified by notice of the state investment officer pursuant to § 4-5-29.2, for the Department of Education - state aid to education and the Board of Regents - postsecondary scholarship grant programs.
    Section 33. All members of state boards, councils, commissions, and advisory bodies listed in this section, or created by law during the Ninety-first and Ninety-second Legislative Sessions, are entitled to reimbursement for allowable expenses as approved by the Board of Finance under the provisions of chapter 3-9. The salary or per diem compensation for members of state boards, councils, commissions, and advisory bodies for their work in actual performance of their duties or responsibilities is as follows:
PER DIEM PAYABLE  
FISCAL YEARS 2017 & 2018  
BOARDS, COMMITTEES, COUNCILS, AND COMMISSIONS  
    EXECUTIVE MANAGEMENT    
Building Authority of SD   $60  
Capitol Complex Restoration and Beautification Commission   $ 0  
Civil Service Commission   $60  
Council of Economic Advisors   $ 0  
Economic Development, Board of   $60  
Economic Development Finance Authority   $ 0  
Educational Telecommunications, Board of Directors for   $60  
Housing Development Authority   $75  
Health and Education Facilities Authority   $ 0  
Internal Control, State Board of   $ 0  
Records Destruction Board   $ 0  
Research and Commercialization Council   $ 0  
Science and Technology Authority, Board of   $75  
SD Ellsworth Authority   $ 0  
SD State Radio   $ 0  
    AGRICULTURE    
American Dairy Association of SD   $60  
Animal Industry Board   $60  
Brand Board   $60  
Corn Utilization Council   $60  
Oilseeds Council   $60  
SD Pulse Crops Council   $60  
Soybean Research and Promotion Council   $60  
State Conservation Commission   $60  
State Fair Commission   $60  
Value Added Finance Authority   $60  
Veterinary Medical Examiners, Board of   $60  
Weed and Pest Control Commission   $60  
Wheat Commission   $60  
    TOURISM    
Arts Council   $60  
Tourism, Board of   $60  
    GAME, FISH, AND PARKS    
Game, Fish, and Parks Commission   $75  
Governor's Commission on Ft. Sisseton   $ 0  
SD Recreation Trail Advisory Board   $ 0  
SD Snowmobile Advisory Council   $ 0  
Boundary Waters Commission - SD - MN   $ 0  
    REVENUE    
Gaming, Commission on   $75  
SD Lottery Commission   $75  
    TRIBAL RELATIONS    
SD Geographic Names, Board of   $ 0  
    SOCIAL SERVICES    
Aging, Advisory Council on   $60  
Board of Addiction and Prevention Professionals   $60  
Counselor Examiners, Board of   $60  
Human Services Center Advisory Board   $ 0  
Medical Advisory Committee   $ 0  
Pharmaceutical and Therapeutics Committee   $60  
Psychology Examiners, Board of   $60  
Social Services, Board of   $60  
Social Workers Examiners, Board of   $60  
Victims' Compensation Board   $60  
Behavioral Health Advisory Committee   $ 0  
Visitation Grant Advisory Group   $ 0  
Commission on Child Support   $ 0  
    HEALTH    
Chiropractic Examiners, Board of   $60  
Comprehensive Cancer Control Steering Committee   $ 0  
Dentistry, Board of   $60  
Early Hearing Detection and Intervention Grant Advisory Committee   $ 0  
Funeral Services, State Board of   $60  
Health Link Advisory Committee   $ 0  
Healthcare-Associated Infection Advisory Group   $ 0  
Hearing Aid Dispensers, Board of   $60  
HIV Community Planning Workgroup   $ 0  
HIV Media Review Committee   $ 0  
HIV Prevention Planning Workgroup   $ 0  
Massage Therapy, Board of   $60  
Medical and Osteopathic Examiners, State Board of   $60  
Nursing, Board of   $60  
Nursing Home Administrators, Board of   $60  
Optometry, Board of Examiners   $60  
Pharmacy, Board of   $60  
PHHS Block Grant Advisory Committee   $ 0  
Podiatry Examiners, Board of   $60  
Ryan White Care Council   $ 0  
Sexual Violence Prevention Planning Committee   $ 0  
Tobacco Prevention Advisory Committee   $ 0  
    PUBLIC SAFETY    
SD Homeland Security Senior Advisory Committee   $ 0  
SD 9-1-1 Coordination Board   $ 0  
Transportation Commission, State   $75  
    TRANSPORTATION    
Aeronautics Commission   $60  
Railroad Board, SD   $60  
    EDUCATION    
Advisory Council on Certification   $ 0  
Advisory Panel for Children with Disabilities   $ 0  
Education, State Board of   $75  
Extraordinary Cost Oversight Board   $ 0  
Headstart Advisory Group   $ 0  
Historical Society Trustees, Board of   $60  
Native American Advisory Council   $ 0  
Practitioners, Committee of   $ 0  
Professional Administrators Practices and Standards Commission   $60  
Professional Practices and Standards Commission   $60  
Richard Hagen-Minerva Harvey Memorial Scholarship Board   $ 0  
School Finance Accountability Board   $ 0  
SD Interagency Coordinating Council   $ 0  
State Library Board   $60  
Superintendent Advisory Committee   $ 0  
Title III Coordinators Advisory Panel   $ 0  
Virtual High School Advisory   $ 0  
    LABOR AND REGULATION    
Abstractors Board of Examiners   $60  
Accountancy, SD Board of   $60  
Appraiser Certification Program Advisory Council   $ 0  
Banking Commission, State   $60  
Barber Examiners, Board of   $60  
Cosmetology Commission   $60  
Department of Labor Employees Retirement Board   $60  
Electrical Commission, State   $60  
Governor's Task Force on Trust Administration Review and Reform   $ 0  
Human Rights, Commission on   $60  
Plumbing Commission   $60  
Real Estate Commission   $60  
SD Retirement System Board of Trustees   $75  
SD Work Force Development Council   $60  
State Workers' Compensation Advisory Council   $ 0  
Technical Professions, Board of   $60  
Unemployment Insurance Advisory Council   $60  
SD Athletic Commission   $60  
    REGENTS    
Regents, Board of   $75  
    MILITARY    
Military Affairs, Board of   $60  
    VETERANS AFFAIRS    
Veterans' Commission   $60  
    CORRECTIONS    
Corrections Commission   $ 0  
Council of Juvenile Services   $ 0  
Pardons and Paroles, Board of

The expense reimbursement for each member of the Board of Pardons and Paroles is equal to the daily rate set in § 24-13-5.  

$75  
    HUMAN SERVICES    
Blind Vendors Committee   $ 0  
Family Support Council   $60  
Planning Council on Developmental Disabilities   $60  
Services to the Blind and Visually Impaired, Board of   $60  
State Council for Independent Living   $ 0  
Vocational Rehabilitation, Board of/Governor's Advisory    
Committee on Employment of People with Disabilities   $60  
    ENVIRONMENT AND NATURAL RESOURCES    
Emergency Response Commission   $ 0  
Minerals and Environment, Board of   $75  
Operator Certification Board   $ 0  
Petroleum Release Compensation Board   $60  
Small Business Clean Air Compliance Advisory Panel   $ 0  
Water and Natural Resources, Board of   $60  
Water Management Board   $60  
    UNIFIED JUDICIAL SYSTEM    
Court Appointed Special Advocate Commission   $60  
Judicial Qualifications Commission   $60  
    LEGISLATIVE    
The salary or per diem compensation for members of the Legislature is equal to

the daily rate set by subdivision 2-4-2(2).  

    ATTORNEY GENERAL    
Law Enforcement Officers Standards Commission   $60  
Open Meeting Commission   $60  
    PUBLIC UTILITIES COMMISSION    
One Call Notification Board   $ 0  
    STATE AUDITOR    
Commission on Equal Access to Our Courts   $0  
    STATE TREASURER    
Investment Council   $75  
Public Deposit Protection Commission   $ 0  
    SECRETARY OF STATE    
Elections, State Board of   $60  
Finance, Board of   $ 0  

     Signed March 16, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\034.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\035.wpd
CHAPTER 35

(SB 15)

South Dakota Investment Council membership revised.


        ENTITLED, An Act to revise certain provisions concerning the membership of the South Dakota Investment Council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 4-5-13 be amended to read:

    4-5-13. The State Investment Council shall consist of eight voting members. Five members of the council shall be appointed by the Executive Board of the Legislative Research Council and the executive board may appoint persons holding public office, appointive or elective, provided that no more than three members of the State Investment Council, at any one time, shall hold public office. Action shall be by majority vote. Each of the members of the State Investment Council shall be appointed for a term of five years. No more than four appointed members may be members of the same political party. In addition to those members appointed by the executive board, the state treasurer and, the commissioner of school and public lands, and the executive director of the South Dakota Retirement System shall serve as ex officio voting members and a representative of the Board of Trustees of the South Dakota Retirement System shall serve as an ex officio voting member. The term of the representative of the Board of Trustees shall be one year and he shall be appointed by the Board of Trustees of the South Dakota Retirement System.

     Signed February 23, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\035.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\036.wpd
CHAPTER 36

(SB 48)

General Appropriations Act for fiscal year 2016 revised.


        ENTITLED, An Act to revise the General Appropriations Act for fiscal year 2016.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That section 2 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF EXECUTIVE MANAGEMENT

    (16A) Employee Compensation Pool

        Personal Services, General Funds, delete "$9,979,624" and insert "$789,611"



        Personal Services, Federal Funds, delete "$5,016,808" and insert "$638,221"

        Personal Services, Other Funds, delete "$11,200,009" and insert "$1,405,785"

Adjust all totals accordingly.

    Section 2. That section 2 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF EXECUTIVE MANAGEMENT

    (29) South Dakota Public Broadcasting

        Operating Expenses, General Funds, delete "$1,226,745" and insert "$1,401,089"

Adjust all totals accordingly.

    Section 3. That section 3 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF REVENUE

    (3) Motor Vehicles

            Operating Expenses, Other Funds, delete "$6,372,282" and insert "$9,465,027"

Adjust all totals accordingly.

    Section 4. That section 5 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF TOURISM

    (1) Tourism

        Operating Expenses, Other Funds, delete "$12,028,624" and insert "$12,968,241"

Adjust all totals accordingly.

    Section 5. That section 6 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF GAME, FISH AND PARKS

    (4) State Parks and Recreation

        Operating Expenses, General Funds, delete "$1,603,376" and insert "$2,609,949"

Adjust all totals accordingly.

    Section 6. That section 8 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF SOCIAL SERVICES

    (3) Medical and Adult Services

        Operating Expenses, General Funds, delete "$306,330,539" and insert "$307,284,667"

        Operating Expenses, Federal Funds, delete "$451,444,171" and insert "$452,462,197"


Adjust all totals accordingly.

    Section 7.  That section 8 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF SOCIAL SERVICES

    (4) Children's Services

        Operating Expenses, General Funds, delete $32,030,441" and insert "$30,968,454"

Adjust all totals accordingly.

    Section 8. That section 8 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF SOCIAL SERVICES

    (5) Behavioral Health

        Operating Expenses, General Funds, delete "$44,807,914" and insert "$42,508,133"

Adjust all totals accordingly.

    Section 9. That section 9 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF HEALTH

    (3) Health and Medical Services

        Operating Expenses, General Funds, delete "$2,004,530" and insert "$2,124,530"

Adjust all totals accordingly.

    Section 10. That section 9 of chapter 31 of the 2015 Sessions Laws be amended to read:

DEPARTMENT OF HEALTH

    (5) Correctional Health

        Operating Expenses, Other Funds, delete "$12,653,143" and insert "$13,389,538"

Adjust all totals accordingly.

    Section 11.  That section 10 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF LABOR AND REGULATION

    (2) Unemployment Insurance Services

        Operating Expenses, General Funds, delete "$0" and insert "$150,000"

Adjust all totals accordingly.

    Section 12. That section 11 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF TRANSPORTATION


    (1) General Operations

        Operating Expenses, Other Funds, delete "$93,217,400" and insert "$103,051,548"

Adjust all totals accordingly.

    Section 13. That section 12 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF EDUCATION

    (2)    Workforce Education Fund-Informational

        Operating Expenses, Other Funds, delete "$2,100,000" and insert "$3,397,339"

Adjust all totals accordingly.

    Section 14. That section 12 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF EDUCATION

    (3)    State Aid to General Education

        Operating Expenses, General Funds, delete "$347,719,770" and insert "$344,885,182"

Adjust all totals accordingly.

    Section 15. That section 12 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF EDUCATION

    (7) Postsecondary Vocational Education

        Operating Expenses, General Funds, delete "$22,275,039" and insert "$22,295,271"

Adjust all totals accordingly.

    Section 16. That section 12 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF EDUCATION

    (9) Education Resources

        Operating Expenses, General Funds, delete "$5,219,809" and insert "$6,480,469"

Adjust all totals accordingly.

    Section 17. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (4) University of South Dakota Proper

        Operating Expenses, General Funds, delete "$3,710,804" and insert "$3,420,449"

Adjust all totals accordingly.


    Section 18. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (6) South Dakota State University Proper

        Operating Expenses, General Funds, delete "$5,894,977" and insert "$5,948,218"

Adjust all totals accordingly.

    Section 19. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (9) South Dakota School of Mines and Technology

        Operating Expenses, General Funds, delete "$1,275,217" and insert "$1,155,828"

Adjust all totals accordingly.

    Section 20. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (10) Northern State University

        Operating Expenses, General Funds, delete "$1,298,826" and insert "$1,128,658"

Adjust all totals accordingly.

    Section 21. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (11) Black Hills State University

        Operating Expenses, General Funds, delete "$749,854" and insert "$727,957"

Adjust all totals accordingly.

    Section 22. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (12) Dakota State University

        Operating Expenses, General Funds, delete "$681,299" and insert "$656,063"

        Operating Expenses, Other Funds, delete "$10,093,796" and insert "$10,843,796"

Adjust all totals accordingly.

    Section 23. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS


    (13) South Dakota School for the Deaf

        Operating Expenses, General Funds, delete "$1,177,292" and insert "$1,142,765"

Adjust all totals accordingly.

    Section 24. That section 14 of chapter 31 of the 2015 Session Laws be amended to read:

BOARD OF REGENTS

    (14) South Dakota School for the Blind and Visually Impaired

        Operating Expenses, General Funds, delete "$269,223" and insert "$260,077"

Adjust all totals accordingly.

    Section 25. That section 15 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF THE MILITARY

    (2) Army Guard

        Operating Expenses, General Funds, delete "$2,327,269" and insert "$2,318,032"

        Operating Expenses, Federal Funds, delete "$11,380,108" and insert "$11,363,562"

Adjust all totals accordingly.

    Section 26. That section 15 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF THE MILITARY

    (3) Air Guard

        Operating Expenses, General Funds, delete "$234,228" and insert "$237,657"

Adjust all totals accordingly.

    Section 27. That section 16 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF VETERANS' AFFAIRS

    (1) Veterans' Benefits and Services

        Operating Expenses, General Funds, delete "$371,194" and insert "$416,194"

Adjust all totals accordingly.

    Section 28. That section 16 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF VETERANS' AFFAIRS

    (2) State Veterans' Home

        Operating Expenses, Other Funds, delete "$3,276,140" and insert "$3,157,367"


Adjust all totals accordingly.

    Section 29. That section 17 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF CORRECTIONS

    (2) Mike Durfee State Prison

        Operating Expenses, General Funds, delete "$5,237,031" and insert "$5,007,081"

        Operating Expenses, Other Funds, delete "$537,097" and insert "$547,494"

Adjust all totals accordingly.

    Section 30. That section 17 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF CORRECTIONS

    (3)    State Penitentiary

        Operating Expenses, General Funds, delete "$4,509,313" and insert "$4,390,092"

Adjust all totals accordingly.

    Section 31. That section 17 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF CORRECTIONS

    (4)    Women's Prison

        Operating Expenses, General Funds, delete "$1,302,782" and insert "$1,294,875"

Adjust all totals accordingly.

    Section 32. That section 17 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF CORRECTIONS

    (6) Inmate Services

        Operating Expenses, General Funds, delete "$21,087,342" and insert "$21,823,737"

Adjust all totals accordingly.

    Section 33. That section 17 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF CORRECTIONS

    (9) Youth Challenge Center

        Personal Services, General Funds, delete "$1,343,955" and insert "$1,171,905"

        Operating Expenses, General Funds, delete "$112,026" and insert "$97,383"

Adjust all totals accordingly.


    (10) Patrick Henry Brady

        Personal Services, General Funds, delete "$1,353,892" and insert "$1,180,343"

        Operating Expenses, General Funds, delete "$94,705" and insert "$82,353"

Adjust all totals accordingly.

    (11) State Treatment and Rehabilitation Academy

        Personal Services, General Funds, delete "$2,623,121" and insert "$2,288,896"

        Operating Expenses, General Funds, delete "$2,402,432" and insert "$2,104,226"

Adjust all totals accordingly.

    (12) Quest

        Personal Services, General Funds, delete "$1,199,181" and insert "$1,046,134"

        Operating Expenses, General Funds, delete "$92,683" and insert "$80,564"

Adjust all totals accordingly.

    Section 34. That section 18 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF HUMAN SERVICES

    (3)    South Dakota Developmental Center-Redfield

        Operating Expenses, General Funds, delete "$2,400,571" and insert "$2,345,463"

        Operating Expenses, Federal Funds, delete "$2,614,674" and insert "$2,555,875"

Adjust all totals accordingly.

    Section 35. That section 19 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

    (2) Environmental Services

        Operating Expenses, General Funds, delete "$564,107" and insert "$739,107"

Adjust all totals accordingly.

    Section 36. That chapter 31 of the 2015 Session Laws be amended by adding a NEW SECTION to read:

    Section 34. The state treasurer shall transfer to the general fund all unobligated cash from the South Dakota risk pool fund created by § 58-17-120.

    Section 37. That chapter 31 of the 2015 Session Laws be amended by adding a NEW SECTION to read:

    Section 35. The state treasurer shall transfer to the general fund three million five hundred

thousand dollars ($3,500,000) from the petroleum release compensation fund created by subdivision 34A-13-1(11).

    Section 38. That chapter 31 of the 2015 Session Laws be amended by adding a NEW SECTION to read:

    Section 36. The state treasurer shall transfer to the general fund four million nine hundred fifty-seven thousand five hundred nine dollars, or so much thereof that may be available, from moneys within the Department of Corrections.

    Section 39. The state treasurer shall transfer from the tuition and fees fund created by § 13-53-15 to the Board of Regents other budgeted fund the sum of one hundred thirty-seven thousand one hundred seventy dollars for the purpose of supporting the need based scholarship.

    Section 40. Funds appropriated by this Act which are unspent at the end of fiscal year 2016 may be carried over to fiscal year 2017.

    Section 41. This Act is effective June 28, 2016.

     Signed March 16, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\036.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\037.wpd
CHAPTER 37

(HB 1045)

General Appropriations Act for fiscal year 2013 revised.


        ENTITLED, An Act to revise certain reversion provisions relating to the General Appropriations Act for fiscal year 2013.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That section 1 of chapter 33 of the 2015 Session Laws be amended to be read:

    Section 1. That section 1 of chapter 32 of the 2014 Session Laws be amended to read as follows:

    Section 1. That chapter 26 of the 2013 Session Laws be amended by adding thereto a NEW SECTION to read as follows:

    Section 147. Up to five hundred seventy-one thousand dollars ($571,000) in general funds and up to one million dollars ($1,000,000) in other funds appropriated in subsection (7) of section 109 of this Act that are unspent may be carried over until June 30, 2016 2017.

    Section 2. That section 2 of chapter 33 of the 2015 Session Laws be amended to be read:

    Section 2. That section 2 of chapter 32 of the 2014 Session Laws be amended to read as follows:

    Section 2. That chapter 26 of the 2013 Session Laws be amended by adding thereto a NEW SECTION to read as follows:

    Section 148. Up to eight hundred forty-four thousand dollars ($844,000) in general funds appropriated in subsection (2) of section 124 of this Act that are unspent may be carried over until June 30, 2016 2017.

    Section 3. That section 3 of chapter 33 of the 2015 Session Laws be amended to be read:

    Section 3. That section 3 of chapter 32 of the 2014 Session Laws be amended to read as follows:

    Section 3. That chapter 26 of the 2013 Session Laws be amended by adding thereto a NEW SECTION to read as follows:

    Section 149. Up to five hundred thousand dollars ($500,000) in general funds and up to two hundred ninety thousand dollars ($290,000) in other funds appropriated in subsection (2) of section 128 of this Act that are unspent may be carried over until June 30, 2016 2017.

    Section 4. This Act is effective June 28, 2016.

     Signed March 14, 2016
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PUBLIC PROPERTY, PURCHASES AND CONTRACTS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\038.wpd
CHAPTER 38

(SB 23)

Conditional land exchanges, time allowed to complete extended.


        ENTITLED, An Act to extend the time allowed for conditional land exchanges.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 5-3-7 be amended to read:

    5-3-7. The commissioner of school and public lands may exchange, with the approval of the Governor and following a public hearing, any school section or portion of a school section common school, indemnity, or endowment land for any land located within the State of South Dakota of like appraised value. The commissioner may also exchange, with the approval of the Governor and following a public hearing, any school section or portion of a school section common school, indemnity, or endowment land for any land located within the State of South Dakota of appraised value of at least seventy-five percent of the school land if the difference is paid in cash at the time of the exchange. Such exchanges The exchange may be conditional as long as if the transfer is completed within two five years and as long as the trust corpus is never diminished. Any cash received from such an the exchange shall be treated as a cash sale pursuant to the provisions of chapter 5-9. The commissioner shall promulgate rules, pursuant to chapter 1-26, to establish the procedures and criteria for such exchanges a land exchange.

     Signed March 9, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\038.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\039.wpd
CHAPTER 39

(HB 1102)

Time to review competitive bids increased.


        ENTITLED, An Act to allow for additional time to review certain competitive sealed bids.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 5-18A-5 be amended to read:

    5-18A-5. The following procedures apply to the use of competitive sealed bids:

            (1)    Public notice of the invitation for bids shall be given pursuant to § 5-18A-14;

            (2)    The invitation for bids shall include a purchase description, and all contractual terms and conditions applicable to the procurement. The invitation for bids for supplies shall include the length of time, not to exceed forty-five days, between the bid opening and the award of the bid;

            (3)    A bid may be submitted either manually or electronically in a manner authorized by the purchasing agency;

            (4)    Each bid shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid, and such other relevant information as may be specified, together with the name of each bidder shall be recorded. Except as otherwise provided by law, the record and each bid shall be open to public inspection;

            (5)    Each bid shall be unconditionally accepted without alteration or correction, except as authorized in this section. Each bid shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the invitation for bids;

            (6)    Any bid may be withdrawn by letter or, by electronic communications, or in person before the time specified in the advertisement therefor for bid. The purchasing agency may allow modification of bids by mail, facsimile, or electronic notice received at the place designated in the invitation to bid not later than the time set for the opening of bids. A modification may not reveal the bid price but shall provide the addition or, subtraction, or the modification so that the final prices or terms will not be known to the purchasing agency until the sealed bid is opened. A modification may not be withdrawn after the time set for the opening of bids. Each modification shall be confirmed in writing by the successful bidder before award of the contract. No bid made may be changed or altered by telephone. After bid opening, no withdrawal of a bid or change in bid prices or other provisions of bids prejudicial to the interest of the purchasing agency or fair competition is permitted. The purchasing agency may waive technical irregularities in the bid or proposal of the low bidder or offeror which irregularities that do not alter the price, quality, or quantity of the services, or items of tangible personal property bid or offered. Any decision to permit the correction or withdrawal of a bid, or to cancel an award or a

contract based on a bid mistake, shall be supported by a written determination made by the purchasing agency, and included in the bid file;

            (7)    The contract for services or public improvement shall be awarded within thirty days and the contract for supplies shall be awarded withing forty-five days of the bid opening by written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids. The purchasing agency may reject any and all bids and readvertise for bids if none of the bids are satisfactory, or if the purchasing agency believes an agreement has been entered into by the bidders to prevent competition. If the low bidder is not responsible or the bid is not made in accordance with the requirements of this chapter and chapters 5-18B, 5-18C, and 5-18D or the low bid is withdrawn as authorized by this section, the bid of the next lowest responsible and responsive bidder may be accepted;

            (8)    If it is considered impractical to initially prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation;

            (9)    If, after advertising for bids, no firm bids are received, the purchasing agency may negotiate a contract for the purchase of the supplies, services, or public improvement projects at the most advantageous price, if the specifications of the original bid are met;

            (10)    If two or more competitive sealed bids submitted are identical in price and product quality, the bids are the low bid, and no resident bidder preference is applicable, the purchasing agency may:

            (a)    Award the bid by lottery to one of the identical low bidders; or

            (b)    Reject all the bids and resolicit bids for the required supplies, services, or public improvement.

    Section 2. That § 5-18A-35 be amended to read:

    5-18A-35. In the procurement of supplies or services, a purchasing agency may require a bond or an approved security to be submitted with any bid or proposal as a guarantee that the bidder will enter into a contract with the purchasing agency. No offeror or bidder may be required to leave the bond or security posted for a longer period than thirty days that allowed by section 1 of this Act if the bid or proposal is not accepted. The bond or approved security of the successful offeror or bidder shall be returned upon the signing of the contract.

    Section 3. That § 5-18B-9 be amended to read:

    5-18B-9. No bidder on a public improvement contract may be required, either in the invitation for bids or otherwise, to leave a certified check or cashier's check, or bid bond, posted for a longer period than thirty days that allowed by section 1 of this Act if the bid is not accepted. The check or bid bond of the successful bidder shall be returned upon the execution of the contract and surety hereafter provided for. The checks or bid bonds of all unsuccessful bidders shall be, by the purchasing agency, immediately returned to the respective makers thereof and not more than thirty forty-five days shall elapse between the opening of the bids and either the acceptance of the bid of the lowest responsible bidder or the rejection of all of the bids presented.

     Signed February 29, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\040.wpd
CHAPTER 40

(SB 118)

Purchases that may be exempt from bidding requirements.


        ENTITLED, An Act to exempt certain purchases from certain bidding requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 5-18A-22 be amended to read:

    5-18A-22. The provisions of this chapter and chapters 5-18B, 5-18C, and 5-18D do not apply to:

            (1)    Any highway construction contract entered into by the Department of Transportation;

            (2)    Any contract for the purchase of supplies from the United States or its agencies or any contract issued by the General Services Administration;

            (3)    Any purchase of supplies or services, other than professional services, by purchasing agencies from any active contract that has been awarded by any government entity by competitive sealed bids or competitive sealed proposals or from any contract that was competitively solicited and awarded within the previous twelve months;

            (4)    Any equipment repair contract;

            (5)    Any procurement of electric power, water, or natural gas; chemical and biological products; laboratory apparatus and appliances; published books, maps, periodicals and technical pamphlets; works of art for museum and public display; medical supplies; communications technologies, computer hardware and software, peripheral equipment, and related connectivity; tableware or perishable foods;

            (6)    Any supplies, services, and professional services required for externally funded research projects at institutions under the control of the Board of Regents;

            (7)    Any property or liability insurance or performance bonds, except that the actual procurement of any insurance or performance bonds by any department of the state government, state institution, and state agency shall be made under the supervision of the Bureau of Administration;

            (8)    Any supplies needed by the Department of Human Services or the Department of Social Services or prison industries for the manufacturing of products;

            (9)    Any printing involving student activities, conducted by student organizations and paid for out of student fees, at institutions under the control of the Board of Regents. However, nothing in this subdivision exempts, from the requirements of this chapter and chapters 5-18B, 5-18C, and 5-18D, purchases that involve printing for other activities at institutions under the control of the Board of Regents;

            (10)    Any purchase of surplus property from another purchasing agency;

            (11)    Any animals purchased;

            (12)    Any purchase by a school district of perishable food, raw materials used in construction or manufacture of products for resale, or for transportation of students;

            (13)    Any authority authorized by chapters 1-16A, 1-16B, 1-16E, 1-16G, 1-16H, 1-16J, 5-12, or 11-11;

            (14)    Any seeds, fertilizers, herbicides, pesticides, feeds, and supplies used in the operation of farms by institutions under the control of the Board of Regents;

            (15)    Any purchase of supplies for any utility owned or operated by a municipality if the purchase does not exceed the limits established in § 5-18A-14;

            (16)    For political subdivisions, any contract for asbestos removal in emergency response actions and any contract for services provided by individuals or firms for consultants, audits, legal services, ambulance services, architectural services and engineering, insurance, real estate services, or auction services;

            (17)    Any purchase of supplies or services from a contract established through a Midwestern Higher Education Compact group purchasing program by a competitive sealed bid or a competitive sealed proposal; or

            (18)    Any contract concerning the custody, management, purchase, sale, and exchange of fund investments and research by the State Investment Council or Division of Investment; or

            (19)    For political subdivisions, any purchase of equipment involving the expenditure of less than fifty thousand dollars.

     Signed March 10, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\041.wpd
CHAPTER 41

(SB 6)

Public improvement contracts, security requirements revised.


        ENTITLED, An Act to revise certain performance security requirements for public improvement contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 5-21 be amended by adding a NEW SECTION to read:

    The requirement of a performance security may be waived by a public corporation if the procurement meets the requirements established pursuant to § 5-18A-9.

    Section 2. That § 5-21-1.2 be repealed.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\041.wpd



LOCAL GOVERNMENT GENERALLY

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\042.wpd
CHAPTER 42

(SB 74)

Members of governing bodies displaced by a natural disaster
continue their term of office.


        ENTITLED, An Act to authorize members of certain governing bodies who are displaced by a natural disaster to continue their term of office.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 6-1 be amended by adding a NEW SECTION to read:

    Any member of a governing body of a county, municipality, school district, township, or special purpose district, who is displaced from the district, county, municipality, township, ward, or precinct from which the member was elected or appointed to serve by flood, tornado, fire, or other natural disaster may continue to serve until the expiration of the member's term.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\042.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\043.wpd
CHAPTER 43

(HB 1034)

Local government election revisions.


        ENTITLED, An Act to revise certain provisions concerning local government elections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 6-16-4 be amended to read:

    6-16-4. The county auditor shall publish the notice of the voter registration deadline at least once each week for two consecutive weeks, the last publication to be not less than twenty-four nor more than thirty days prior to the election. If the eligible voters are defined as landowners only for the special district to be formed, the notice of the voter registration deadline does not need to be published. The auditor shall publish notices each notice of election at least once each week for two consecutive weeks, the last publication to be not less than four nor more than ten days before the election in at least one legal newspaper of general circulation in the proposed district.

    Section 2. That § 7-1-69 be amended to read:

    7-1-69. Whenever If not less than fifteen percent of the registered voters of any organized county in this state, based upon the total number of registered voters at the last preceding general election, shall on or before the first day of July in any general election year, file in the office of county auditor

a petition requesting that the name of the county be changed and authorizing the county to appropriate and pay for all local government and state government costs associated with changing the name of the county, the county auditor shall at the next regular general election, submit the question to the legal registered voters of the county on a separate printed ballot if using a hand counted paper ballot. The petition shall also authorize the county to appropriate and pay for all local government and state government costs associated with changing the name of the county. If the county uses an optical scan ballot, the question may be included on the general election ballot. The following question shall be submitted to the voters:

    Shall the name of this county be changed to __________ and county funds be appropriated to pay for all local government and state government costs associated with the name change?

    ____ Yes

    ____ No

    All voters in favor of changing the name of the county and paying for all the local government and state government costs associated with the name change shall place either a cross or check mark in the square before the word Yes on the ballot. All voters who do not favor changing the name of such the county and paying for all the local government and state government costs associated with the name change shall place either a cross or check mark in the square before the word No on the ballot. All local government and state government costs associated with changing the name of the county shall be paid by the county from county funds appropriated for that purpose before the change of the name of the county shall be effective.

    Section 3. That § 9-13-21 be amended to read:

    9-13-21. The finance officer shall prepare and furnish, at the expense of the municipality, all official ballots. The quantity of ballots provided shall be at least ten percent more than the number of voters at the last comparable election. The ballots shall be white in color prescribed by the State Board of Elections, of good quality of print paper, printed in black ink, and in the English language only.

    The ballots for municipal elections shall be available for absentee voting no later than fifteen days prior to election day. If the ballots are for a secondary election, the ballots shall be available no later than seven days prior to the secondary election day. Absentee voting shall be conducted pursuant chapter 12-19.

    The names of the candidates for each office to be voted for in the precinct shall be arranged without any other designation than that of the office for which they are candidates. If more than one member of the governing body is to be elected, the ballot shall contain instructions as to how many candidates for the governing body are to be voted for. The finance officer shall determine, by lot, each candidate's position on the ballot. Each candidate may be present or represented when the position on the ballot is being determined.

    No candidate's name may be printed upon the official ballot unless the candidate has been nominated as provided in this chapter.

    Section 4. That § 13-7-13 be amended to read:

    13-7-13. The business manager of the school district shall provide proper ballots, pollbooks, voting booths, and necessary supplies as required by law to the proper election officials on election day. The ballots shall be similar in form to those authorized by law for municipal elections as prescribed by the State Board of Elections. The quantity of ballots provided shall be at least ten percent more than the number of voters at the last comparable election. No party affiliation may appear on the ballot and the names of the candidates for the respective vacancies shall be printed on

the ballot. Each candidate's position on the ballot shall be chosen by lot by the business manager and each candidate may be present or represented when the position on the ballot is being determined. The ballots for school elections shall be available for absentee voting no later than fifteen days prior to election day.

     Signed February 12, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\043.wpd

COUNTIES

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\044.wpd
CHAPTER 44

(HB 1004)

County government statutory updates.


        ENTITLED, An Act to make form and style revisions to certain statutes regarding counties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 7-2-13 be amended to read:

    7-2-13. Whenever If the area of any county in this state has been altered by the changing of the boundaries and the county's commissioners do not run at large, it shall be the duty of the board of county commissioners of such county, at the first regular meeting thereafter, to shall establish commissioner districts in such the county and fix the. The board shall fix boundaries thereof of each district in the manner provided by law for establishing commissioner districts and changing the boundaries thereof of each district insofar as the same is applicable. Such The commissioner districts so established and the boundaries so fixed shall remain as established and fixed until the same may be changed as provided by law.

    Section 2. That § 7-3-7 be amended to read:

    7-3-7. Whenever If a new county is organized or created out of an organized county in this state or in counties which have heretofore been divided and the liabilities and assets of the county as it existed prior to the division thereof of the county have not been apportioned and divided by the board of county commissioners of the original county and the newly organized portion thereof, it shall be the duty of, the auditor-general of this state, either by himself or his duly authorized assistant, forthwith to shall make an inventory of all of the assets and liabilities of such the original county and such the new county or counties and estimate the value and amount of such the assets and liabilities. After notice to the county commissioners of the counties affected, it shall be the duty of the auditor-general or his assistant to shall apportion the liabilities and assets of such the counties in the manner provided by law for the apportionment of bonded indebtedness.

    Section 3. That § 7-3-18 be amended to read:

    7-3-18. The board of county commissioners may in its discretion let contract the work of transcribing such of records or any part thereof by contract to the lowest and best bidder, but in all events the. The person transcribing the records of any particular office shall be required to attach his the transcriber's certificate without extra cost to each and every instrument or matter transcribed by him to the effect that such the transcript is a full, true, and complete copy of the original instrument

as it appears of record in the original county, showing book and page thereof; provided that on matters. However, for any record transcribed from the office of the county treasurer or county auditor it shall only be is only necessary to make one such certificate at the close of each book transcribed.

    Section 4. That § 7-7-21 be amended to read:

    7-7-21. The officer in whose office such deputies or clerks are a deputy or clerk is employed shall have the sole power of appointing the same or removing them may appoint or remove a deputy or clerk at pleasure, which. The appointment or removal shall be by a certificate in writing, and any deputy or clerk so appointed shall before entering upon the duties of his office, take and subscribe the oath or affirmation required by the Constitution, which. The oath or affirmation shall be endorsed on the certificate of appointment and filed as otherwise provided by law. The deputy or clerk shall furnish an official bond in such an amount and with such surety or sureties as his as the principal may deem deems proper, which. The bond shall be attached to the certificate of appointment and oath of office.

    Section 5. That § 7-7-23 be amended to read:

    7-7-23. Any officer who shall receive and appropriate to his receives or appropriates for the officer's own use and benefit any part of the salary allowed any deputy or clerk employed under the provisions of this title shall be is guilty of theft.

    Section 6. That § 7-8-26.4 be amended to read:

    7-8-26.4. If a county officer or employee can demonstrate to the county commission that he has of a condition which will leave him the officer or employee uninsurable upon termination of employment with the county and he elects not to participate in the group hospital, medical, or health insurance plans authorized by §§ 7-8-26 and 7-8-26.1, the board of county commissioners may enter into individual hospital, medical, or health contracts to provide for the protection and benefit of the officer or employee and his the officer or employee's immediate family. The board may pay all or part of the necessary premiums for the coverage of the officer or employee and his the officer or employee's immediate family. However, the monthly premium for an individual contract shall may not exceed the monthly premium for the group plan established in the county pursuant to §§ 7-8-26 and 7-8-26.1.

    Section 7. That § 7-8A-4 be amended to read:

    7-8A-4. The board of county commissioners may appoint as county manager any county officer or employee deemed to be qualified to be the county manager by reason of his training, experience, and administrative qualifications. If any county officer or employee is appointed county manager, the officer or employee shall resign his the office or position and terminate his office responsibilities before assuming the office of county manager.

    Section 8. That § 7-9-5 be amended to read:

    7-9-5. No register of deeds shall may accept for record or record any deed, mortgage, or other conveyance of any platted plot of land until the plat thereof shall have has been accepted for record in his the register of deed's office.

    Section 9. That § 7-10-3 be amended to read:

    7-10-3. The county auditor shall also at the close of each calendar month list all cash and cash items in the hands of held by the county treasurer and at the same time verify the balances in the several bank depositories. He The county auditor shall make a report of the same to the board of county commissioners at each regular meeting, showing the bank balances, the total amount of actual cash, the total amount of checks and drafts which have been in the treasurer's possession not

exceeding three days, and he shall make in detail. The county auditor shall also submit an itemized report of all cash items, checks, and drafts which have been in the treasurer's possession over three days, which. This report shall be made a part of the county commissioners' proceedings.

    Section 10. That § 7-10-9 be amended to read:

    7-10-9. An action may be brought against the county auditor and the sureties upon his the official bond, in the name of the state and for its use, or for the use of any county or person injured by the misconduct in office of the auditor, or by the omission of any duty required of him the auditor by law.

    Section 11. That § 7-11-1 be amended to read:

    7-11-1. The county treasurer is the collector of taxes. He The treasurer shall keep his maintain an office at the county seat. It is his duty to The treasurer shall receive all money belonging to the county from whatever source derived and other money which by law is directed to be paid to him the treasurer.

    Section 12. That § 7-11-2 be amended to read:

    7-11-2. Whenever If the county treasurer in furnishing the bond required of him by law shall is required to furnish a bond executed by a surety company legally authorized to transact business in this state, upon the approval of such the bond by the county commissioners, the county shall pay the premium for such the bond.

    Section 13. That § 7-11-4 be amended to read:

    7-11-4. The county treasurer shall be charged with the amount of all tax lists in his hands for collection and credited with the amounts collected thereon and collect and credit the taxes on behalf of the county and maintain the delinquent taxpayer list.

    Section 14. That § 7-11-4.1 be amended to read:

    7-11-4.1. A No county treasurer may not be held personally liable for insufficient or no account checks issued to him the treasurer for the licensure of snowmobiles, cars, trucks motor vehicles, trailers, motorcycles, and or manufactured homes, if the county treasurer has exercised due diligence and has taken the following steps:

            (1)    Required positive identification of the individual person presenting the check. Such identification shall include, but not be limited to, a valid driver's license; and

            (2)    Within a thirty-day period of receiving notice that the check has been dishonored, instituted a collection process on the check.

    Section 15. That § 7-11-5 be amended to read:

    7-11-5. It shall be the duty of the The county treasurer to shall account for and pay into the treasury of the county all money, funds, and sums directly or indirectly received by him by virtue of his office and also all sums received by him as interest or compensation for the use, deposit, or forbearance of any county money or funds in his hands or under his control the treasurer and interest received on deposits.

    Section 16. That § 7-11-6 be amended to read:

    7-11-6. All money received by the county treasurer for the use of the county shall may only be disbursed by him only the treasurer on the warrant of the county auditor drawn according to law, and

all. All money shall be paid over by him the treasurer at the time and in the manner provided by law.

    Section 17. That § 7-11-9 be amended to read:

    7-11-9. Whenever If the treasurer receives any money, warrants, or orders on any account other than taxes charged on the tax duplicate, he the treasurer shall make out duplicate receipts for the same, one of which. One receipt shall be delivered to the person paying such the money, warrant, or order and the other receipt shall within one week be filed by the treasurer with the auditor in order that the treasurer may be charged with the amount thereof within one week.

    Section 18. That § 7-11-17 be amended to read:

    7-11-17. The books, accounts, and vouchers of the county treasurer and all money, warrants, or orders remaining in the treasury shall at all times be subject to the inspection and examination of the board of county commissioners; and at, including the regular meetings of the board in January and July of each year and at such any other times as it may direct, he the board directs. The treasurer shall settle with it his the board the accounts as kept by the treasurer.

    He The treasurer shall exhibit for that purpose all of his books, accounts, and money, and all vouchers relating to the same to be audited and allowed, which. The vouchers shall be retained by the board as evidence of his the treasurer's settlement and if found correct, the account shall be so certified; if not, he shall be. If it is found incorrect, the treasurer is liable on his the bond.

    Section 19. That § 7-11-18 be amended to read:

    7-11-18. If any county treasurer shall fail fails to make return or settlement or to pay over all money with which he the treasurer may stand charged at the time and in the manner prescribed by law, it shall be the duty of the county auditor, on receiving instructions from the state auditor or from the county commissioners, to cause suit to be instituted shall institute a suit against such either the treasurer and his sureties or any of them or the surety, or both, in the circuit court of his the county.

    Section 20. That § 7-11-19 be amended to read:

    7-11-19. The making of profit and converting the same to his profit to private use or benefit, directly or indirectly, by the county treasurer out of any money in the county treasury with the custody of which he the treasurer is charged, by using, loaning, or depositing the same profit in any manner, is theft. In addition the treasurer shall also be is liable upon his the official bond for the profits realized by such the unlawful using of such use of the county funds.

    Section 21. That § 7-12-1 be amended to read:

    7-12-1. The sheriff shall keep and preserve the peace within his the county, for which purpose he is empowered to. The sheriff may call to his aid such persons any person or power of his the county as he may deem the sheriff deems necessary. He must The sheriff shall pursue and apprehend all felons, and must shall execute all writs, warrants, and other process processes from any court or magistrate for which shall be directed to him by the sheriff has the legal authority.

    Section 22. That § 7-12-2 be amended to read:

    7-12-2. The sheriff shall keep his the office at the county seat, serve or post all notices he may receive received from the county auditor or the board of county commissioners, and perform such other duties as are prescribed by the laws of this state law.

    Section 23. That § 7-12-4 be amended to read:

    7-12-4. It shall be the duty of the The sheriff to shall comply with all orders of the attorney

general or his agents and at all times, whether on duty under the call of the attorney general or his agents or not, to see to it as far as may be possible that. The sheriff shall faithfully execute and enforce all the laws of this state and especially all laws relating to alcoholic beverages are faithfully executed and enforced.

    Section 24. That § 7-12-5 be amended to read:

    7-12-5. The sheriff shall furnish to the attorney general or his agents from time to time any information regarding conditions in his the county that may be required, and it shall be his duty to inform himself of. The sheriff shall pursue all violations of the criminal laws of this state, to notify the state's attorney thereof, to of violations, collect preliminary information, file criminal complaints or preliminary informations therefor, and to arrest and assist in the prosecution of persons charged therewith.

    Section 25. That § 7-12-6 be amended to read:

    7-12-6. When If the sheriff is sued, the coroner shall serve the papers on him, and his the sheriff. The return on all papers served by him shall have the coroner has the same credit as the sheriff's return, and he. The coroner shall receive the same fees as the sheriff receives for like services.

    When If the sheriff is disqualified or incapacitated, a deputy sheriff shall exercise the powers and duties of the office of sheriff so far as such disqualification or incapacity of the sheriff involved same is required or needed.

    Section 26. That § 7-12-11 be amended to read:

    7-12-11. The sheriff shall be is responsible for the acts of each such deputy, jailer, and clerk in the performance of the duties of his the sheriff's office, provided, however, that the. The sheriff may summarily relieve any deputy, jailer, or clerk of any or all official responsibilities and duties, summarily.

    Section 27. That § 7-12-20 be amended to read:

    7-12-20. If any sheriff or other officer serves any summons, subpoena, bench warrant, venire, or other process in any action to which the state is a party, the officer shall be required to endorse upon the writ or process or upon a paper attached thereto, at the time he makes his of the return of service thereon, a statement of his the fees for the service, the number of miles traveled, and the amount of his mileage; and in case he shall fail. If the sheriff fails to make his the return with the statement and file the same return with the clerk of the court from which the process issued, before judgment shall be is pronounced in the action to which the process relates, he shall the sheriff may not receive no fees any fee for the service, and the. The county commissioners of the county where the service is performed are also prohibited from allowing the same reimbursement. No fee may be required of a county, its officers, or board of county commissioners in any action commenced by the county.

    Section 28. That § 7-16-16 be amended to read:

    7-16-16. The state's attorney and his deputy the state's attorney's deputies and special agents are entitled to receive from the county their the necessary traveling and hotel expenses, including necessary telephone and telegraph bills, while traveling for the purpose of making investigations and attending to the duties of their office either within or without the state. The county treasurer shall pay the expenses upon the presentation of itemized vouchers approved by the state's attorney. When If the state's attorney or his, the deputy, or special agent uses his own automobile or conveyance, he used a personal motor vehicle, the person is entitled to receive not more than the state rate for each mile necessarily traveled.


    Section 29. That § 7-16-17 be amended to read:

    7-16-17. If the state's attorney of one county shall be is requested to go to another county or from one part to another part of his the county to transact any business as state's attorney, he the state's attorney shall be paid by his the county the amount of his the necessary expenses in transacting such the business in addition to the salary fixed by the county board.

    Section 30. That § 7-16-19 be amended to read:

    7-16-19. In counties any county of over fifty thousand population and any other county where the board of county commissioners so designates, the state's attorney shall be a full-time position and the state's attorney may not be counsel or attorney in any action, civil or criminal, in the courts of this state except when acting on behalf of his the county or the State of South Dakota.

    Section 31. That § 7-16-19.1 be amended to read:

    7-16-19.1. The state's attorney of a county not employing a full-time state's attorney may maintain the Office of State's Attorney at his the state's attorney's regular business address. The board of county commissioners may provide him the state's attorney an allowance for fixed office overhead expenses in lieu of furnishing office space at the courthouse.

    Section 32. That § 7-16-20 be amended to read:

    7-16-20. It shall be the The state's attorney's duty attorney, whenever he shall receive any money for fines, forfeitures, recognizances, penalties, or costs, to is received, shall deliver to the officer or person paying the same, duplicate receipts, one of which receipt shall be filed by such the officer or person in the office of the county treasurer.

    Section 33. That § 7-16-21 be amended to read:

    7-16-21. The state's attorney shall pay over to the county treasurer all money he may receive as such received as the state's attorney within ten days after he receives it and it is received. The state's attorney shall file with the county auditor a complete list of the amount so paid showing all fees and costs received in civil actions in which the county is the successful party, as well as all fines, recognizances, forfeitures, penalties, or costs received by him, specifying in each instance the state's attorney. The state's attorney shall specify the name of each person from whom he may have received such money was received, the particular amount paid by each person, and the cause for which each payment was made. A state's attorney who neglects to account for or pay over the money received by him as required by this section is guilty of theft.

    Section 34. That § 7-16-22 be amended to read:

    7-16-22. It shall be the duty of the The county treasurer, in his the treasurer's official name and capacity, to shall cause an action to be instituted upon the bond of such the state's attorney for the recovery of the money so received and unpaid by him the state's attorney.

    Section 35. That § 7-16A-9 be amended to read:

    7-16A-9. A public defender and his assistants shall represent any indigent person who is:

            (1)    Detained by a law enforcement officer without charge or judicial process;

            (2)    Arrested or charged with having committed a crime or of being a juvenile delinquent;

            (3)    Detained under a conviction of a crime, juvenile delinquency, or mental illness; or

            (4)    Otherwise an indigent person entitled to representation by law, to the same extent as a person having his or her own counsel, and with the necessary services and facilities of representation, including investigation and other preparation, authorized or approved by a court.

    Section 36. That § 7-16A-12 be amended to read:

    7-16A-12. If at any stage of proceedings, including appeal or other post-judgment proceedings, a public defender is unable to represent an indigent person, because of a conflict of interest or other good cause, the court concerned may assign a substitute private attorney to represent him the indigent person.

    A substitute attorney has the same duty to the indigent person as the public defender for whom he the attorney is substituted. The court shall prescribe reasonable compensation for the substitute attorney and approve the expenses necessarily made by him the attorney for the defense of the indigent person in the manner prescribed in pursuant to § 23A-40-8.

    Section 37. That § 7-16A-18 be amended to read:

    7-16A-18. A public defender shall keep appropriate records for each indigent person represented by his the public defender's office. A public defender shall submit an annual report to his the advisory committee showing the number of indigent persons represented by his the public defender's office, the crimes involved, the outcome of each case, and the expenditures made in carrying out his the public defender's responsibilities.

    Section 38. That § 7-16B-13 be amended to read:

    7-16B-13. There is established at the association of county commissioners a county legal expense relief fund administered by the county legal expense relief board created pursuant to § 7-16B-22. Expenditures from the fund shall be approved by the board.

    Section 39. That § 7-16B-15 be amended to read:

    7-16B-15. If thirty-five or more counties elect to participate in the county legal expense relief fund prior to November 1, 1993, the The county legal expense relief board established in § 7-16B-22 shall establish administrative shall promulgate rules, pursuant to chapter 1-26, regarding the procedure and requirements for allowing additional counties to participate in the fund, the procedure and requirements for allowing participating counties to withdraw from the fund, and other policies to facilitate the administration, distributions, and assessments associated with the fund.

    Section 40. That § 7-16B-16 be amended to read:

    7-16B-16. Any participating county may apply to the board for funds from the county legal expense relief fund if that county has incurred expenses related to any one criminal prosecution resulting in a court trial that are in excess of twenty-five thousand dollars.

    The application shall include such information as the board may prescribe. No claim may be paid for any legal expenses related to a criminal prosecution resulting in a court trial which were incurred before July 1, 1994.

    Section 41. That § 7-18-2 be amended to read:

    7-18-2. The board of county commissioners shall procure and keep a seal with such emblems and devices as it may think proper, which the board deems proper. This shall be the seal of the county, and no other seal shall be used by and the county auditor may not use any other seal.


    Section 42. That § 7-18-3 be amended to read:

    7-18-3. At its regular meeting in January of each year the board of county commissioners shall designate three legal newspapers printed in the county as official newspapers. If there are not three legal newspapers within the county, then as many newspapers that are legal newspapers. No more than two newspapers within the same municipality may be designated as official newspapers by the county, if there are other legal newspapers published elsewhere within the county.

    The board shall publish a full and complete report of all its official proceedings at all regular and special meetings and shall publish proceedings as soon after any meeting as practicable. The board shall pay for publishing the proceedings at a rate not to exceed ninety percent of the legal line rates for weekly newspapers and not to exceed the legal line rate for daily newspapers, as provided in chapter 17-2.

    All notices required by law to be published by the county auditor shall also be published in the official newspapers. If any notice includes a legal description of property outside the incorporated limits of a municipality, the notice may include a physical description of the property from the nearest incorporated municipality.

    Section 43. That § 7-18-3.1 be amended to read:

    7-18-3.1. The name of any person receiving or who is entitled to poor relief as provided in chapter 28-13 shall may not be published as a part of the minutes of county commissioners meetings as provided in § 7-18-3.

    Section 44. That § 7-18-4 be amended to read:

    7-18-4. The editor, publisher, or foreman of each Each official newspaper, shall file or cause to be filed with the county auditor an affidavit of publication with the county auditor, executed in due form, of all legal official publications so made; provided, however, that not more than two newspapers within the same municipality shall be so designated, if there are other legal newspapers published elsewhere within made by the county.

    Section 45. That § 7-18-5 be amended to read:

    7-18-5. It shall be the duty of the The county auditor to shall make a full and complete report of the proceedings of each regular and special meeting of the board, and to transmit the same to the publishers of and send a copy to the official newspapers. Such The report shall be made out and transmitted sent within one week from the time such each meeting is held.

    Section 46. That § 7-18-9 be amended to read:

    7-18-9. The board of county commissioners is authorized to may condemn private property for public purposes in the manner and to the extent hereinafter provided by law.

    Whenever If the board of county commissioners shall deem deems it necessary to condemn private property for the purpose of opening, constructing, changing, relocating, maintaining, repairing, or extending any highway or bridge within its county, or for the purpose of erecting, repairing, or extending any courthouse, jail, or other public building, and of acquiring other or additional ground therefor, or for the purpose of providing cut slopes, borrow pits, or channel changes, or to afford unobstructed vision on said the highways in said the county at any point of danger to public travel, for right-of-way and borrow pit, or for the purpose of making any other public improvement or to acquire private property for any public use authorized by law, such the board shall by resolution and order declare such an appropriation necessary to be made, stating and state the purpose thereof and the extent of such the appropriation, and thereupon proceedings for such condemnation and appropriation shall be had as provided by law.

    Nothing herein shall in this section may be construed as authorizing county commissioners to condemn property for county courthouse or jail site until a majority of the voters of a county shall have voted in favor of the erection of a courthouse or jail.

    Section 47. That § 7-18-10 be amended to read:

    7-18-10. Any county of this state may, through its board of commissioners, enter into agreements with and receive grants from the United States Bureau of Outdoor Recreation or its successor federal agencies.

    Section 48. That § 7-18A-12 be amended to read:

    7-18A-12. Each person who has circulated a petition shall, before filing the petition, sign an affidavit, under oath, verifying that he or she circulated the petition and that either he the circulator or the signer added the signer's place of residence and date of signing. If multiple sheets of paper are necessary to obtain the required number of signatures, each sheet shall be self-contained and separately verified by the circulator.

    Section 49. That § 7-18A-13 be amended to read:

    7-18A-13. When If a petition to initiate is filed with the auditor, he the auditor shall present it to the board of county commissioners at its next regular or special meeting. The board shall enact the proposed ordinance or resolution and shall submit it to a vote of the voters in the manner prescribed for a referendum within sixty days after the final enactment. However, if the petition is filed within three months prior to the primary or general election, the ordinance or resolution may be submitted at the primary or general election.

    Section 50. That § 7-18A-14 be amended to read:

    7-18A-14. No initiated ordinance or resolution shall become operative is effective unless approved by a majority of the votes cast for and against the same ordinance or resolution. If so approved, it shall take the ordinance or resolution takes effect upon the completion of the canvass of the election returns relating thereto.

    Section 51. That § 7-18A-26 be repealed.

    Section 52. That § 7-19-1 be amended to read:

    7-19-1. The state's attorney is authorized to may commence and prosecute actions in the name of and on behalf of the county, as hereinafter as provided in this chapter.

    Whenever If in the opinion of the state's attorney the commencement and prosecution of any action is necessary to protect the interests of the county in any matter or to recover any money due the county from any person, he the state's attorney may present to the judge of the circuit court of the circuit in which the county is situated a summons and complaint in such matter and ask leave of the judge to commence such action. If it shall appear to such appears to the judge that the interests of the county presumably require the prosecution of such the action, he shall make an endorsement to that effect on the judge shall endorse the summons and thereupon. Then the state's attorney shall have power to may commence and prosecute such the action.

    Section 53. That § 7-19-2 be amended to read:

    7-19-2. Whenever If any real estate shall be is advertised to be sold at execution sale, held pursuant to any judgment in an action to which any county shall be a party, the board of county commissioners of such the county may instruct the county auditor to bid in such on the real estate in the name of the county and. The commissioners shall fix the maximum price to be by him for the

auditor to bid for such the real estate. It shall be the duty of the The county auditor upon the receipt of such the instructions to shall attend such the sale and, in case no more. The county auditor shall be bid for such on the real estate than, but may not exceed the maximum amount fixed by such the board, to. The county auditor shall purchase such the real estate at the lowest price at which the same real estate can be procured. Any county is authorized to may hold in its own name and for its own benefit all real estate acquired under the provisions of this section.

    Section 54. That § 7-20-1 be amended to read:

    7-20-1. The county treasurer shall deposit and at all times keep on deposit the money in his possession as county treasurer in state or national banks within the county. In the event that such If the deposits exceed the limit prescribed in § 7-20-10 or if there is but one bank located within the county then such the deposits may be made in other banks or branch banks within an adjacent county of this state having an approved and responsible financial standing. Any such A bank may apply for the privilege of keeping such the county funds upon the conditions herein prescribed and shall state in the application the amount of money desired. If bond or securities are segregated as provided in § 4-6A-3, it shall be the duty of the board of county commissioners to shall approve such the application.

    Section 55. That § 7-20-12 be amended to read:

    7-20-12. Any county officer neglecting or refusing to comply with the provisions of §§ 7-20-1 to 7-20-11, inclusive, shall be is subject to removal from office. The No county treasurer shall not be is liable on his the county treasurer's official bond for any loss of money deposited in compliance with the provisions of said these sections.

    Section 56. That § 7-20-14 be amended to read:

    7-20-14. The limit of deposit which may be carried or deposited in any such bank by the county treasurer, as provided in § 7-20-10, shall does not apply to banks any bank designated as active depositories; provided however, that in no event shall the. However, no county treasurer may deposit in such banks a bank more than the limit provided for by § 7-20-10 unless he shall first receive the county treasurer receives express authority from the board of county commissioners evidenced by a resolution of such board, duly entered, authorizing the deposit of a greater amount.

    Section 57. That § 7-21-17 be amended to read:

    7-21-17. Every Each contract made in violation of the provisions of § 7-21-16 shall be is null and void in regard to any obligation thereby purported to be imposed on the county, but every such. However, any officer who makes or participates in making or authorizes the making of any such made or authorized the contract shall be is individually liable for its performance.

    Every such Each officer present when such the unlawful contract is made, or authorized to be made shall be is deemed to have participated in the making or authorization thereof, as the case may be of the contract, unless he the officer dissents therefrom and enters, or causes to be entered, such dissent on the records of such the county.

    Section 58. That § 7-22-1 be amended to read:

    7-22-1. Before any account, claim, or demand against any county for any obligation, property, or services for which such the county is liable may be allowed, the person having such who has the account, claim, or demand, either by himself or agent, shall:

            (1)    Reduce the same to writing, and shall Submit in writing and verify the same to the effect that such that the account is just and true, that the money therein charged was actually paid for the purposes therein stated; that the property therein charged for was actually

delivered or used for the purposes therein stated, and was of the value therein charged; and that the services therein charged were actually rendered and of the value as charged, or in case such. If the services were official, for which fees are prescribed by law, that the fees and amounts charged therefore are such as for the services are allowed by law; and that no part of such the account, claim, or demand has been paid; or

            (2)    Present an invoice or verification which shall be attached to a county voucher, the latter being signed or verified by the county official who purchased the property or had the services rendered to the effect that such the account is just and true; that the money therein charged was actually paid for the purposes therein stated; that the property therein charged for was actually delivered or used for the purposes therein stated, and was of the value therein charged; and that the services therein charged for were actually rendered and of the value as charged, or in case such. If the services were official, for which fees are prescribed by law, that the fees and amounts charged therefore are such as for the services are allowed by law; and that no part of such the account, claim, or demand has been paid.

    The provisions of this section do not apply to any claim or demand for the per diem of jurors or witnesses fixed by law.

    Section 59. That § 7-22-8 be amended to read:

    7-22-8. The treasurer of each organized county shall provide himself with and keep a warrant register which register shall show in a column arranged for that purpose the number, date, and amount of each warrant presented, the particular fund upon which the same warrant is drawn, the date of presentation, the name and address of the person in whose name the same warrant is registered, the date of payment when made, the amount of interest, and the total amount paid thereon, with the date when notice to the person in whose name such the warrant is registered is mailed, as hereinafter provided.

    Section 60. That § 7-22-9 be amended to read:

    7-22-9. Whenever If any warrant shall be is presented to the treasurer for payment and there shall be no funds in the treasury have been appropriated for that purpose, the treasurer shall enter such the warrant in his the warrant register for payment in the order of presentation; and, upon such warrant so registered, he. The treasurer shall endorse on the warrant the registry number, date of registration, and the words "Not paid for want of funds," and sign such the endorsement; provided however, that nothing in this chapter shall be construed to require the holder of any warrant to register the same.

    Section 61. That § 7-22-13 be amended to read:

    7-22-13. Any warrant holder who shall fail fails to present his a warrant to the treasurer within thirty days after the treasurer shall have mailed him written notice to present the same has mailed written notice to the holder, addressed to such the holder's last known address, shall lose his loses the right to payment in order provided in pursuant to § 7-22-12. No holder of a registered warrant shall be is entitled to payment in the order provided in § 7-22-12 unless he shall first have the holder has filed with the treasurer a description of the warrant or warrants held by him the holder, and his the holder's name and post office address.

    Section 62. That § 7-22-15 be amended to read:

    7-22-15. All such registered warrants shall be paid in the order of their registration and it shall be the duty of every such the treasurer, as soon as money sufficient for the payment of such the warrants is received to the credit of the particular fund upon which the same warrants are drawn, to shall immediately notify by mail the persons in whose names the same warrants are drawn or, if he shall receive. If the treasurer receives written notice from some other person that he such person is the holder of any such the warrant, then the treasurer shall notify such the other person and thereupon

interest upon such the warrants shall cease and the. The treasurer shall pay and cancel such the warrants upon presentation thereof of the written notice.

    Section 63. That § 7-22-16 be amended to read:

    7-22-16. No county treasurer shall may either directly or indirectly contract for or purchase any warrant issued by the county of which he is for which the treasurer at receives any discount whatever upon the sum due on such the warrant; and if any county. If the treasurer shall so contract contracts for or purchase any such warrant, he shall not be the treasurer is not allowed in settlement the amount of such the warrant or any part thereof and of the warrant. The treasurer shall forfeit the whole amount due on such the warrant to be recovered by civil action at the suit of the state for the use of the county.

    Section 64. That § 7-25-8 be amended to read:

    7-25-8. One copy of the plans and specifications for any building or buildings to be erected shall be and remain on file in the office of the county auditor at all times from the beginning of the publication of the advertisement for bids until the completion of the building or buildings. Any county auditor who shall allow or permit allows or permits the original of any building plans or specifications filed in his the office, as in this section provided, to be taken away removed from his the office after the same shall have been filed commits a petty offense.

    Section 65. That § 7-25-12 be amended to read:

    7-25-12. The board must further shall require a bond from the contractor in a sum equal to the contract price, conditioned that the contractor will execute his executes the contract and complete completes the building or buildings according to the plans and specifications and to the full satisfaction of the board, and. The contractor shall account for all moneys paid to him the contractor and pay all bills and claims on account of labor or materials furnished in and about the performance of the contract including all demands of subcontractors, such. The bond to shall stand as security for all such the bills, claims, and demands and to be a surety bond issued by some a surety company authorized to do a surety bonding business in the state or a personal bond with sufficient sureties, to be approved by the board of county commissioners.

    Section 66. That § 7-25A-17 be amended to read:

    7-25A-17. Each member of the board of supervisors shall receive for his services an amount not to exceed one hundred dollars per month or an amount established by the electors at referendum. In addition, each supervisor shall receive travel and per diem expenses as set by the board.

    Section 67. That § 7-25A-21 be amended to read:

    7-25A-21. The board shall designate a person as treasurer of the district, who shall have is in charge of the funds of the district. The funds shall may only be disbursed only upon the order, or pursuant to the resolution, of the board by warrant or check countersigned by the treasurer and by such other person as may be authorized by the board. The board may give the treasurer other or additional powers and duties as the board may deem deems appropriate and may fix his the compensation for the treasurer. The board may require the treasurer to give a bond in such amount, on such terms, and with such sureties as may be is deemed satisfactory to the board to secure the performance by the treasurer of his the powers and duties.

    Section 68. That § 7-27-19 be repealed.

    Section 69. That § 7-28-1 be repealed.

    Section 70. That § 7-30-5 be amended to read:



    7-30-5. Whenever If the highest offer for any tract of land payable in cash is satisfactory, such the bidder shall immediately pay to the county treasurer the amount specified as the annual rental for the tract, and take the treasurer's. The treasurer shall give the bidder a receipt therefor, and shall keep a copy of which shall be retained by the treasurer in his on file in the office. The bidder shall exhibit such receipt to the county auditor, who shall thereupon prepare a lease of such for the tract in duplicate to be signed by the county auditor and the lessee, one copy to be given to the lessee and one copy to be retained by the. The county auditor in his shall give the lessee a copy and shall keep a copy on file in the office.

    Section 71. That § 7-30-16 be amended to read:

    7-30-16. Any lessee, who shall complete constructs a dam pursuant to the permit described in § 7-30-15 and cause has received a certificate, executed by the federal district range program inspector that he has measured the dam and approved it and that the dam contains a certain number of cubic yards of earth, to be filed in the office of the county auditor, shall thereafter be is entitled to payment as provided in § 7-30-17, unless he sooner the lessee defaults in the terms of the lease, abandons same the lease, or fails to bid at the next letting thereof of the lease. The inspector shall state in the certificate the measurements of the dam, including the number of cubic yards of earth and whether the dam was approved by the inspector.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\044.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\045.wpd
CHAPTER 45

(HB 1003)

County government administrative functions modified.


        ENTITLED, An Act to revise certain administrative functions regarding county government.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 7-7-2.1 be amended to read:

    7-7-2.1. The chairman chair of the board of county commissioners at his discretion may close the courthouse in case of emergency or severe weather and each such closing shall be for no more than one business day. The public shall be adequately notified. An emergency for the purpose of this section is an unforeseen occurrence or combination of circumstances which that calls for immediate action or remedy.

    Section 2. That § 7-8-24 be amended to read:

    7-8-24. The board of county commissioners shall have power to may appropriate funds for the purpose of defraying necessary expense of proper observance of Memorial Day each year.

    Section 3. That § 7-8-19 be amended to read:

    7-8-19. The board of county commissioners shall have the power to may preserve order when sitting as a board and may punish contempts by fines not exceeding five dollars or by imprisonment in the county jail not exceeding twenty-four hours. It. The board may enforce obedience to all its orders by attachment or other compulsory process.

    Section 4. That § 8-4-3 be amended to read:



    8-4-3. Each person elected or appointed to any township office, shall, within ten days after receiving notice of election or appointment and before entering upon the discharge of the officer's duties, take and subscribe an oath or affirmation as required by § 3-1-5. All such official oaths Each oath shall be immediately filed in the office of the county auditor by the last day of March. No fee may be charged or received by any officer for administering or filing the official oath, or for filing or recording any township officer's official bond.

    Section 5. That § 8-10-2 be amended to read:

    8-10-2. It shall be the duty of the The township clerk, within three days after the board of supervisors has made the levy of taxes, to shall notify the county auditor by the last day of March of the amount of the taxes levied, who by the board of supervisors. The county auditor shall enter the same amount on the county tax list to be collected by the county treasurer as county taxes are collected.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\046.wpd
CHAPTER 46

(HB 1002)

County general fund reporting requirements revised.


        ENTITLED, An Act to eliminate certain reporting requirements for the county general fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 7-21-18.1 be amended to read:

    7-21-18.1. The total unreserved, undesignated unassigned fund balance of the general fund may not exceed forty percent of the total amount of all general fund appropriations contained in the budget for the next fiscal year. The total unreserved, undesignated fund balance of the general fund of the county as of March thirty-first and September thirtieth shall be published in the minutes of the proceedings of the board of county commissioners and reported to the Department of Legislative Audit. The report shall be on forms prescribed by the Department of Legislative Audit.

     Signed February 10, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\046.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\047.wpd
CHAPTER 47

(HB 1005)

County officials fees revised.


        ENTITLED, An Act to revise and repeal certain fees that are established to compensate counties for services provided by county officials.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 3-5-10 be repealed.



    Section 2. That § 7-10-8 be repealed.

    Section 3. That § 7-25-15 be repealed.

    Section 4. That § 32-3-18 be amended to read:

    32-3-18. Application for a certificate of title shall be made to the secretary county treasurer, upon a form prescribed by the secretary. The application shall contain a listing of all owners along with either a South Dakota driver license number or social security number, or, if a business, the federal employer identification number; the address of the applicant; a full description of the vehicle with vehicle identification numbers, if any; a statement of applicant's title and all liens and encumbrances thereon on the vehicle; the county in which the vehicle is to be kept; and the names and addresses of the holders of all liens, title reservations, and encumbrances thereon on the vehicle. The application shall be accompanied by a fee of five ten dollars. Five dollars of the fee shall be deposited in the state motor vehicle fund and five dollars shall be deposited in the county general fund. If a certificate of title has previously been issued for the motor vehicle, trailer, or semitrailer in this state, it shall be accompanied by the certificate of title duly assigned, unless provided for in this chapter.

    Section 5. That § 32-3-45 be amended to read:

    32-3-45. The county treasurer shall charge a fee of five ten dollars for each notation of any lien on a certificate of title. No fee may be charged for the cancellation of such lien. The lien fee shall be accounted for in the same manner as other fees of their office. The fee shall be deposited in the county general fund.

    Section 6. That § 32-3A-15 be amended to read:

    32-3A-15. The county treasurer may charge the boat owner an administrative fee not to exceed one dollar three dollars for each boat license sold pursuant to this chapter. The fee shall be deposited in the county general fund.

    Section 7. That § 32-3A-25 be amended to read:

    32-3A-25. The county treasurer shall charge a five ten dollar fee for issuance of a certificate of title, a transfer of title, or a corrected certificate of title. Five dollars of the fee shall be deposited in the state general fund and five dollars shall be deposited in the county general fund. If a certificate of title is lost, stolen, mutilated, destroyed, or becomes illegible, the owner named in the certificate shall obtain a duplicate by applying to the county register of deeds treasurer. The applicant shall furnish information the Department of Revenue department requires concerning the original certificate and the circumstances of its loss, mutilation, or destruction. Mutilated or illegible certificates shall be returned to the department with the application for a duplicate. The duplicate certificate of title shall be marked plainly, duplicate, across its face and mailed or delivered to the applicant or as otherwise directed by the owner. If a lost or stolen original certificate of title for which a duplicate has been issued is recovered, the original shall be surrendered promptly to the department for cancellation.

    A fee of ten dollars shall be paid to the department for each duplicate title issued.

    Section 8. That § 32-3A-30 be amended to read:

    32-3A-30. A security interest created in this state in a large boat, and as defined by §§ 32-3A-20 to 32-3A-32, inclusive, on and after March 1, 1992, is not perfected until the security interest is noted on the certificate of title. On or after July 1, 1993, a security interest created in this state on a large boat, as defined in § 42-8-2, exclusive of a motorboat is not perfected until the security interest is noted on the certificate of title. On or after July 1, 1994, a security interest created in this

state on a large boat, as defined in § 42-8-2, is not perfected until the security interest is noted on the manufacturer's statement of origin, on the manufacturer's certificate of origin, or on the certificate of title. To perfect the security interest, a copy of the security agreement shall be presented along with the manufacturer's statement of origin, the manufacturer's certificate of origin, or the original title. The secretary of revenue, an agent of the secretary, the county treasurer, the register of deeds, or the seller, buyer, owner, or holder of the manufacturer's statement of origin, the manufacturer's certificate of origin, or the certificate of title shall note the security interest at any place on the manufacturer's statement of origin, the manufacturer's certificate of origin, or the certificate of title. If so noted, the lien is perfected against the creditors of the debtor, is valid against the creditors of the debtor, whether armed with process or not, and subsequent purchasers and other lien holders or claimants, but otherwise is not valid against them. The fee for noting the lien is five ten dollars. The fees shall be credited to deposited in the county general fund. The certificate of title shall be presented to the county treasurer if a lien is to be noted on an existing certificate of title.

    The owner shall present the certificate of title to the county treasurer when a release statement is filed.

    Section 9. That § 32-9-21 be amended to read:

    32-9-21. Each motor carrier desiring to discontinue using a vehicle as a commercial motor vehicle, may, on or before the termination of any year as provided in § 32-9-17, return the commercial motor vehicle plates and certificates to the county treasurer of the county where the vehicle was registered together with an application for the discontinuance. Upon satisfactory evidence that the carrier will not further operate the vehicle as a commercial motor vehicle, the county treasurer shall issue to the person, corporation, or limited liability company, so applying, a warrant for the amount due for the remaining months of that year less a five ten dollar administrative fee which shall be retained by the county. The commercial motor vehicle plates and certificates shall be in the possession of the county treasurer on or before the fifth day of the month to receive credit for that month.

    Section 10. That § 7-12-23 be amended to read:

    7-12-23. Whenever If any person accused of a public offense is taken before a judge in chambers for the purpose of entering a plea of guilty, and shall receive receives a penitentiary sentence, the sheriff shall be allowed the same fees and expenses as are provided for in reimbursed pursuant to §§ 7-12-21 and 7-12-22, to be paid as therein provided.

    In all such cases when If a penitentiary sentence is not imposed, he shall be allowed his the sheriff shall be reimbursed for the actual expenses and four dollars per day for the time necessarily employed in for conveying such the person to and from the judge by the nearest traveled route, to be paid. This payment shall be made by the county wherein where the alleged offense was committed.

    Section 11. That § 7-12-18 be amended to read:

    7-12-18. The sheriff shall charge and remit the following:

            (1)    For serving an order of arrest with commitment or bail bond and return, twenty-five dollars;

            (2)    For serving summons, complaint, warrant of attachment, affidavit, notice and undertaking in claim and delivery, or injunction, order to show cause, citation, or other process, and return of the instrument, twenty-five fifty dollars for all such process or instruments served at the same time upon the same person regardless of the capacities in which such person is served. However, for all such process or instruments served upon another such person at approximately the same time at the same place, five ten dollars;

            (3)    For serving subpoena for witness, each person, ten twenty dollars;

            (4)    For traveling expenses in a motor vehicle, a minimum mileage allowance of at least three cents over and above the rate set for state employees by the State Board of Finance but not more than six eight cents above the rate set for state employees by the State Board of Finance, as determined by the board of county commissioners, for each mile actually and necessarily traveled by motor vehicle. For traveling expenses in a private plane, a mileage allowance of ten cents above the rate set for state employees by the State Board of Finance for each mile actually and necessarily traveled by private plane. However, actual cost may be paid for travel by train, bus, plane, or other commercial vehicle;

            (5)    For serving writ of execution and return of the instrument, whether satisfied or unsatisfied, thirty-five ninety-five dollars;

            (6)    For levying writ of possession, twenty-five fifty dollars. However, if the sale of the property levied upon is not subsequently held, the actual costs or expenses associated with levying writ of possession shall be paid;

            (7)    For advertisement of sale in newspaper, in addition to printing, twenty-five dollars;

            (8)    For posting notices of sale of real property, twenty-five dollars, and mileage;

            (9)    For executing writ or order of partition, twenty-five dollars;

            (10)    For making deed for land sold on execution or order of sale, fifty one hundred dollars except no fee is charged when the deed only requires the sheriff's signature;

            (11)    In addition to the applicable fees and expenses, a commission of six percent on all money received and disbursed by the sheriff on execution or order of sale, order of attachment, decree or on sale of real property or personal property, for each dollar not exceeding four hundred dollars, eleven cents; for each dollar above four hundred dollars, and not exceeding one thousand dollars, seven cents; for each dollar above one thousand dollars, and not exceeding fifteen thousand dollars, five cents; for each dollar above fifteen thousand dollars, and not exceeding twenty-five thousand dollars, three cents. However, in no case may the commission be less than twenty-five fifty dollars or more than three thousand five hundred dollars. If the execution or order of sale is a foreclosure of a real estate mortgage, the commission may not be more than one thousand five hundred dollars. The commissions shall be included as a part of the cost of execution, order of sale, order of attachment, decree, or on sale of real or personal property, which shall be paid by the debtor out of the proceeds. However, in all cases each case of redemption prior to the sale, the sheriff is entitled to the commission as stated above, to be paid by the redemptioner as a cost of the redemption;

            (12)    For cases a case in the circuit court, if persons a person, in whose favor an execution or order of sale is issued, bid in bids on the property sold on execution or decree, the sheriff or officer making the sale shall receive the following compensation: If if the amount for which the property is bid in on is one thousand dollars or less, the sum of twenty forty dollars. If; and if the amount for which the property is bid in on is more than one thousand dollars, the sum of fifty one hundred dollars;

            (13)    For making a sale of real property under a foreclosure of mortgage by advertisement, the same fees as for the sale of real property under a judgment of foreclosure and sale of real property; and

            (14)    If personal property is taken by the sheriff on execution or warrant of attachment and applied in the satisfaction of the debt without sale, the same percentage on the appraised

value of the property as in the case of a sale and all additional reasonable and necessary costs and expenses incurred in executing the duties of sheriff including expenses associated with the removal of property from the premises.

    No fee may be charged in any action under § 25-10-3, 25-10-6, 22-19A-8, or 22-19A-12.

    The fees established pursuant to this section shall be used for law enforcement purposes.

    Section 12. That § 14-6-1 be amended to read:

    14-6-1. Upon order of the presiding judge of the circuit court made and filed in the office of the clerk of courts of any county within the circuit of which such county is a part, the clerk of courts of such county shall collect in each civil action, proceeding for judicial remedy, and probate proceeding, as a county lawbook and county law library fee, a sum of two three dollars in actions commenced pursuant to chapter 15-39 and a sum of five seven dollars in all other civil actions, proceedings for judicial remedy, and probate proceedings. The clerk shall collect the fee in the manner in which other fees are collected from the plaintiff or person instituting such the action or proceeding, at the time of filing the first paper in such the action or proceeding. However, no surcharge may be collected for any petition or motion to modify final orders for child support, child custody, child visitation, or spousal support or in any civil action or proceeding for judicial remedy commenced by the state, a county, a municipality, or a school district.

    Section 13. That § 7-31-10 be amended to read:

    7-31-10. In the event If the parties concerned cannot agree upon such the value of the improvements to county-owned land, the board of county commissioners shall appoint a board of appraisal, to view the improvements and determine their the value. The said board of appraisal shall be composed of three disinterested persons who shall file with the board of county commissioners an itemized report of such the appraisal, signed by at least two members of such the board of appraisal. Members of the board of appraisal shall be paid at the state rate of three dollars per diem and five cents per mile for the miles established pursuant to chapter 3-9 for per diem and mileage necessarily traveled in making such the appraisal. The owner of the improvements shall deposit a sum with the county treasurer, prior to such the appraisal sufficient to cover the cost of appraisal as determined by the board of county commissioners. The board of appraisal to shall be paid from such the deposit and any excess shall be refunded to such the owner of the improvements.

    Section 14. That § 48-7A-105 be amended to read:

    48-7A-105. (a) A statement may be filed in the Office of the Secretary of State. A certified copy of a statement that is filed in an office in another state may be filed in the Office of the Secretary of State. Either filing has the effect provided in this chapter with respect to partnership property located in or transactions that occur in this state.

    (b) A certified copy of a statement that has been filed in the Office of the Secretary of State and recorded in the office of the register of deeds has the effect provided for recorded statements in this chapter. A recorded statement that is not a certified copy of a statement filed in the Office of the Secretary of State does not have the effect provided for recorded statements in this chapter.

    (c) A statement filed by a partnership must be executed by at least two partners. Other statements must be executed by a partner or other person authorized by this chapter. An individual who executes a statement as, or on behalf of, a partner or other person named as a partner in a statement shall personally declare under penalty of perjury that the contents of the statement are accurate.

    (d) A person authorized by this chapter to file a statement may amend or cancel the statement by filing an amendment or cancellation that names the partnership, identifies the statement, and states the substance of the amendment or cancellation.

    (e) A person who files a statement pursuant to this section shall promptly send a copy of the statement to every nonfiling partner and to any other person named as a partner in the statement. Failure to send a copy of a statement to a partner or other person does not limit the effectiveness of the statement as to a person not a partner.

    The secretary of state may collect a fee for filing or providing a certified copy of a statement. The register of deeds may collect a fee, not to exceed ten dollars, in accordance with subdivisions 7-9-15(1) and (2) for recording a statement filed pursuant to this section.

    Section 15. That § 32-11-29 be amended to read:

    32-11-29. The following fees:

            (1)    Fees collected under §§ 32-3-57, 32-5-99, 32-5-111, and 32-7A-14.1;

            (2)    The two percent of motor vehicle license collections referred to in § 32-11-4.1; and

            (3)    The title fees collected under §§ 32-3-18 and § 32-3-27;

shall be credited to the state motor vehicle fund. All revenues not appropriated from the special revenue fund established by § 32-5-10.2 shall remain in the fund for the next fiscal year and be used solely for purposes of motorcycle safety courses and motorcycle safety education.

     Signed March 25, 2016
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MUNICIPAL GOVERNMENT

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\048.wpd
CHAPTER 48

(HB 1119)

Criteria for incorporation of a new municipality.


        ENTITLED, An Act to revise the criteria for incorporation of a new municipality.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 9-3-1 be amended to read:

    9-3-1. No municipality shall be incorporated which contains less than one hundred legal residents or less than thirty voters. A municipality may not be incorporated unless it contains as least one hundred legal residents and at least forty-five registered voters. For the purposes of this section, a person is a legal resident in the proposed municipality if the person actually lives in the proposed municipality for at least ninety days of the three hundred sixty-five days immediately preceding the filing of the petition or is an active duty member of the armed forces whose home of record is within the proposed municipality.

    Section 2. That § 9-3-1.1 be amended to read:

    9-3-1.1. No A municipality may not be incorporated if any part of such proposed municipality

lies within three miles of any point on the perimeter of the corporate limits of any incorporated municipality, unless the incorporated municipality refuses or fails to annex a territory which is contiguous to said incorporated municipality, and said contiguous territory has properly petitioned said municipality to be annexed thereto, as provided by § 9-4-1. However, a proposed municipality may be incorporated that is within three miles of an incorporated municipality if the territory to be incorporated is in a different county and has a post office prior to incorporation.

    Section 3. That § 9-3-2 be amended to read:

    9-3-2. Persons making application for the organization of a proposed municipality shall first cause an accurate survey and map to be made of the territory intended to be embraced within the limits of such the proposed municipality showing the boundaries and area thereof and the accuracy of which shall be verified by the affidavit of the surveyor.

    Section 4. That § 9-3-3 be amended to read:

    9-3-3. Any person making application for the organization of a proposed municipality shall cause an accurate census to be taken of the landowners and the legal resident population of the proposed municipality not more than thirty days previous to the time of presenting the application to the board of county commissioners. The census shall exhibit the name of each landowner and person legal resident residing in the proposed municipality and the number of persons belonging to each family as of a certain date. The census shall be verified by the affidavit of the person taking the census.

    Section 5. That § 9-3-4 be amended to read:

    9-3-4. Such survey, map, and census when completed and verified shall be left at some convenient place within such territory the proposed municipality for a period of not less than thirty days for examination by those having an interest in such application.

    Section 6. That § 9-3-5 be amended to read:

    9-3-5. The application for incorporation of a proposed municipality shall be by a petition verified by the circulator and signed by not less than twenty-five percent of the qualified voters who are either registered voters in the proposed municipality or landowners in the proposed municipality who are also registered voters of this state. The application shall identify the type of government to be formed, the number of trustees, commissioners, or wards in the proposed municipality, the boundaries and area according to the survey, and the legal resident population according to the census taken. The application shall be presented at the time indicated in the notice of the application or as soon thereafter as the board of county commissioners can receive and consider the application.

     Signed March 9, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\049.wpd
CHAPTER 49

(SB 65)

Municipal recall election procedure revised.


        ENTITLED, An Act to revise the procedure for a municipal recall petition.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 9-13-30 be amended to read:



    9-13-30. A petition signed by fifteen percent of the registered voters of the municipality, based upon the total number of registered voters at the last preceding general election, demanding the election of a successor to the mayor, commissioner, alderman, or trustee sought to be removed shall be filed with the auditor finance officer and presented by the auditor finance officer to the governing body. The allowable grounds for removal are misconduct, malfeasance, nonfeasance, crimes in office, drunkenness, gross incompetency, corruption, theft, oppression, or gross partiality. The petition shall contain a specific statement of the grounds on which removal is sought. The form for the municipal recall petition shall be prescribed by the state Board of Elections pursuant to chapter 1-26. No signature on a petition is valid if signed more than sixty days prior to before the filing of the petitions. When a petition to recall is filed with the finance officer, the finance officer shall present the petition to the governing body at its next meeting. Only the petition signatures may be challenged in the manner established in §§ 12-1-13 to 12-1-16, inclusive. A failure to challenge petition signatures pursuant to §§ 12-1-13 to 12-1-16, inclusive, does not prohibit an interested person from challenging the filing of the recall petition or the sufficiency of the specific statement of the grounds of the recall petition.

    A challenge to the recall petition regarding the specific statement of the grounds of the recall petition must be filed in circuit court within five business days of the filing of the recall petition. The circuit court shall conduct an expedited declaratory judgment hearing with no right to trial by jury.

    Section 2. That § 9-13-31 be amended to read:

    9-13-31.The governing body shall, upon the presentation of a petition pursuant to § 9-13-30, within ten days of presentation, order and fix a date for holding a special election, to be on a Tuesday not less than thirty nor more than fifty days from the date of the order of the governing body. If a petition is filed on or after January first prior to December thirty-first before the annual municipal election and within sufficient time to comply with the provisions of § 9-13-14, the question of a successor shall be submitted at that annual election.

    The governing body shall have a notice of election published in the same manner as provided in § 9-13-13.

     Certified March 29, 2015

    CODE COUNSEL NOTE: This bill was certified in accordance with section 4 of Article 4 of the Constitution of the State of South Dakota.

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\050.wpd
CHAPTER 50

(HB 1103)

The qualification process for municipal office, revised.


        ENTITLED, An Act to revise certain provisions regarding the qualification process for municipal office.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 9-14-5 be amended to read:

    9-14-5. Each appointive municipal officer shall begin discharging the duties of the office as soon as the officer has qualified and by filing an oath or affirmation of office in the usual form provided by law. The officer shall file the form within ten days after the first meeting of the month following

the appointment. The officer shall hold office until the appointment and qualification of a successor.

    Each elective municipal officer, if elected to fill a vacancy, shall begin discharging the duties of the office as soon as the officer has qualified by filing an oath or affirmation of office in the usual form provided by law. The officer shall file the form within ten days after the first meeting of the month following the election. Except as otherwise provided, each officer, if elected for a full term, shall begin discharging the duties of the office on the first meeting of the month next succeeding the election or as soon thereafter as the officer has qualified.

    Section 2. That § 9-14-7 be amended to read:

    9-14-7. In third class municipalities the clerk, director of equalization, treasurer, and marshal, within ten days after notice of their within ten days after the first meeting of the month following the election or appointment, shall take and subscribe an oath or affirmation of office in the form required by the Constitution and furnish an undertaking to be approved by the Board of Trustees in such sum as it shall direct.

    Section 3. That § 9-14-10 be amended to read:

    9-14-10. The removal of any municipal officer from the ward or municipality for which he the officer was elected or appointed, or his the officer's failure, for ten days after notice of his within ten days after the first meeting of the month following the election or appointment, to qualify and enter upon begin the duties of his office, shall cause causes a vacancy therein in the office.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\051.wpd
CHAPTER 51

(HB 1218)

Notice procedures for any revision of municipal ordinances.


        ENTITLED, An Act to require certain notice procedures for any revision of municipal ordinances.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 9-19 be amended by adding a NEW SECTION to read:

    If any amendment presented and approved by the governing body at the second reading of an ordinance substantially alters the substance of the ordinance from the first reading, the proposed ordinance as amended may not be considered for final adoption until at least five days after a duly noticed public meeting of the governing body pursuant to chapter 1-25.

     Signed March 25, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\052.wpd
CHAPTER 52

(HB 1108)

Municipal government special assessment revisions.


        ENTITLED, An Act to revise certain municipal special assessment provisions and to provide for exclusion of territory from municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 9-43-86 be amended to read:

    9-43-86. Twenty days after publication of the adopted resolution of necessity, unless the referendum is invoked or unless a written protest is filed with the finance officer signed by the owners of more than fifty-five percent of the frontage of the property to be assessed, the governing body may cause the local improvement to be made, may contract for the improvement, and may levy and collect special assessments as provided in this chapter. Upon a two-thirds vote of the governing body, a protest petition may be denied and the governing body may cause the local improvement to be made.

    Section 2. That § 9-43-87 be amended to read:

    9-43-87. At any time after the execution of any contract is signed, for any local improvement for which special assessments are to be levied, the governing body may cause to be made make and filed file in the office of the finance officer an assessment roll showing:

            (1)    The name of the owner of each lot to be assessed as shown by the assessment roll of the county director of equalization;

            (2)    The legal description of each parcel of land to be assessed. The division by deeds of platted lots shall be recognized. The legal description of lands included in the assessment roll shall be taken as of the date of the adoption of the resolution of necessity; and

            (3)    The amount assessed against each lot.

    Section 3. That § 9-48-15 be amended to read:

    9-48-15. If either a main, sewer or trunk, sewer or service sewer has been constructed for which and the cost has not been apportioned against property that may be benefited thereby benefit as provided by this chapter or chapter 9-43, the governing body may require the owner of the property to pay its the owner's proportionate share of the cost of the construction, without interest, according to the benefits to accrue to the property before the property may be platted, replatted, or served by the facilities, as determined by the governing body. The governing body shall investigate and determine the amount to be paid. The amount shall be apportioned by the governing body as it determines among the persons, including the municipality, paying the appropriate cost.

    Section 4. That § 9-4-6 be amended to read:

    9-4-6. On Upon a two-thirds vote of the governing body, or on petition in writing signed by not less than three-fourths of the legal voters and by the owners of not less than three-fourths in value of the property in any territory within any municipality being upon the border thereof and not being laid out into lots and blocks, the governing body may by resolution exclude such the territory therefrom; provided, however, that from the municipality. However, if all the land sought to be

excluded is more than one-half mile from any platted portion of the municipality, the petition in such case need must be signed by the owner only.

    Section 5. That chapter 9-47 be amended by adding a NEW SECTION to read:

    If a main, trunk, or service water line has been constructed and the cost has not been apportioned against property that may benefit as provided in this chapter or chapter 9-43, the governing body may require the owner of the property to pay the owner's proportionate share of the cost of construction, without interest, according to the benefits to accrue to the property, before the property may be platted, replatted, or served by the facilities, as determined by the governing body. The governing body shall investigate and determine the amount to be paid. The amount shall be apportioned by the governing body among the persons, including the municipality, paying the appropriate cost.

     Signed February 29, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\053.wpd
CHAPTER 53

(HB 1089)

Municipal funds accumulation, regulated.


        ENTITLED, An Act to revise provisions for accumulation of funds for certain municipal enterprises.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 9-47-1 be amended to read:

    9-47-1. Every municipality may construct, establish, operate, and maintain a system of waterworks and facilities in connection therewith; may regulate the distribution and use of water supplied thereby; may acquire a suitable supply of water, whether within or without the municipality; may maintain dams, reservoirs, intakes, spillways, conduits, or other devices to gather and store surface, flood, or other waters within or without the municipality either as a direct source of water to the municipality or as a supply of water from which any other source of the water supply of the municipality may be replenished or restored; may advantageously dispose of, to districts, subdivisions, and areas, outside the limits of the municipality to which supply lines may extend, any municipal supply of water, including stored water, not required or used for municipal purposes and any surplus water may be disposed of to any outside district where the water is delivered into a natural watercourse for irrigation purposes; may assess, levy, and collect taxes and special assessments for such purposes; and may appropriate funds and levy taxes to accumulate funds for such purposes, as provided by this title. The accumulated funds shall be placed in a separate fund which may not revert at the end of the fiscal year. The amount of the fund may never exceed an amount equivalent to ten dollars per thousand dollars of taxable valuation of all property within the municipality. The governing body shall establish a maximum amount allowed to be accumulated in the fund. The fund shall be established by a resolution adopted pursuant to chapter 9-19. Every municipality may enter into agreements with the United States, with the State of South Dakota state, and with any authorized agency, subdivision, or unit of government, federal or state, to carry out such purposes.

    Section 2. That § 9-21-14.1 be amended to read:

    9-21-14.1. The governing body of a municipality may by resolution authorize the accumulation of funds for a period longer than one year for specific capital outlay purposes otherwise authorized by law. For the purpose of this section, "capital outlay purposes" means purposes which result in the

acquisition of or additions to plant, or equipment, including but not limited to expenditures for land, existing facilities, improvement of grounds, construction of facilities, additions to facilities, remodeling of facilities, or for the purchase of equipment.

    The maximum capital outlay accumulations shall be as follows:

            (1)    In first-class municipalities, the amount of the accumulation for all purposes may never exceed an amount equivalent to four dollars per thousand dollars of assessed value of all property within the municipality;

            (2)    In second-class municipalities, the amount of the accumulation for all purposes may never exceed an amount equivalent to ten dollars per thousand dollars of assessed value of all property within the municipality or one hundred twenty-five thousand dollars, whichever is greater;

            (3)    In third-class municipalities, the amount of the accumulation may never exceed one hundred twenty-five thousand dollars. The governing body shall establish a maximum amount allowed to be accumulated in the fund.

    Section 3. That § 9-48-2 be amended to read:

    9-48-2. Each municipality may:

            (1)    Establish, construct, and maintain main, trunk, sanitary, storm, and service sewers, and septic or sewage treatment plants, drains, and manholes either within its corporate limits or within ten miles of its corporate limits;

            (2)    Appropriate funds and levy taxes to accumulate funds for the purposes identified in this section;

            (3)    Establish sewer districts as provided by this title;

            (4)    Acquire any sewer, drain, or system of sewerage and drainage already established and constructed; and

            (5)    Acquire land within or without the municipality for a septic or sewage treatment plant or outlet to any main sewer and may assess the cost of the land and the cost of any necessary extension or connection of the main sewer to all the property within the sewer district benefited as provided by this title.

    The proceeds of any taxes levied for the accumulation of funds under this section shall be placed in a separate fund which may not revert at the end of the fiscal year. The amount of the fund may never exceed an amount equivalent to ten dollars per thousand dollars of taxable valuation of all property within the municipality. The governing body shall establish a maximum amount allowed to be accumulated in the fund. The fund shall be established by a resolution adopted pursuant to chapter 9-19.

     Signed February 23, 2016
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TAXATION

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\054.wpd
CHAPTER 54

(HB 1049)

References to the Internal Revenue Code updated.


        ENTITLED, An Act to revise certain provisions regarding references to the Internal Revenue Code.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 10-1 be amended by adding a NEW SECTION to read:

    The term, United States Internal Revenue Code, or Internal Revenue Code, means the United States Internal Revenue Code as amended and in effect on January 1, 2016. This section applies to §§ 10-4-9.1, 10-4-9.2, 10-4-9.3, 10-4-9.4, 10-4-39, 10-43-10.1, and 35-4-11.9, and subdivisions 10-6A-1(7), 10-6B-1(5), 10-18A-1(6), 10-43-10.3(7), and 10-45A-1(5).

    Section 2. That § 10-4-9.1 be amended to read:

    10-4-9.1. Property owned by a public charity and used for charitable purposes is exempt from taxation. A public charity is any organization or society which devotes its resources to the relief of the poor, distressed, or underprivileged. A public charity shall receive a majority of its revenue from donations, public funds, membership fees, or program fees generated solely to cover operating expenses; it shall lessen a governmental burden by providing its services to people who would otherwise use governmental services; it shall offer its services to people regardless of their ability to pay for such services; it shall be nonprofit and recognized as an exempt organization under section 501(c)(3) of the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act; and it may not have any of its assets available to any private interest.

    Section 3. That § 10-4-9.2 be amended to read:

    10-4-9.2. Property owned by a benevolent organization and used exclusively for benevolent purposes is exempt from taxation. A benevolent organization is any lodge, patriotic organization, memorial association, educational association, cemetery association, or similar association. A benevolent organization shall be nonprofit and recognized as an exempt organization under section 501(c)(3), 501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) of the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act. However, if any such property consists of improved or unimproved property located within a municipality not occupied or directly used in carrying out the primary objective of the benevolent organization owning the same, such property shall be taxed the same as other property of the same class is taxed. However, if any such property consists of agricultural land, such property shall be taxed the same as other property of the same class is taxed. For the purposes of this section, an educational association is a group of accredited elementary, secondary, or postsecondary schools. For the purposes of this section, a benevolent organization also includes a congressionally chartered veterans organization which is nonprofit and recognized as an exempt organization under section 501(c)(4) of the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act.

    For purposes of this section, benevolent purpose means an activity that serves the poor, distressed

or underprivileged, promotes the physical or mental welfare of youths or disadvantaged individuals, or relieves a government burden.

    Section 4. That § 10-4-9.3 be amended to read:

    10-4-9.3. Property owned by any corporation, organization, or society and used primarily for human health care and health care related purposes is exempt from taxation. Such corporation, organization, or society shall be nonprofit and recognized as an exempt organization under section 501(c)(3) of the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, and none of its assets may be available to any private interest. The property shall be a health care facility licensed pursuant to chapter 34-12, orphanage, mental health center or community support provider regulated under chapter 27A-5, or camp. The facility shall admit all persons for treatment consistent with the facility's ability to provide health care services required by the patient until the facility is filled to its ordinary capacity and conform to all applicable regulations of and permit inspections by the state as otherwise provided by law.

    Section 5. That § 10-4-9.4 be amended to read:

    10-4-9.4. Any congregate housing facility owned by a corporation, organization, or society is exempt from certain property taxes, if the facility provides certain health care services and is recognized as an exempt nonprofit corporation, organization, or society under section 501(c)(3) of the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, and if none of its assets are available to any private interest. A congregate housing facility does provide health care services if the facility is an independent group-living environment operated and owned by a health care facility licensed pursuant to chapter 34-12 which offers a continuum of care, residential accommodations, and supporting services primarily for persons at least sixty-two years of age or disabled as defined pursuant to chapter 10-6A. Supporting services include the ability to provide health care and a food service that satisfies a balanced nutrition program. As part of the statement required by § 10-4-19, the owner of the congregate housing facility shall submit a statement to the county director of equalization listing the health cares care services provided and method used to satisfy the balanced nutrition program.

    In addition, no owner may apply for a property tax exemption for a congregate housing facility constructed after July 1, 2004, unless the congregate housing facility:

            (1)    Consists of two or more individual housing units located within one structure; and

            (2)    Not more than twenty-five percent of the individual housing units exceed fifteen hundred square feet.

    Section 6. That § 10-4-39 be amended to read:

    10-4-39. Any facility operated as a multi-tenant business incubator and owned by an entity recognized as an exempt nonprofit corporation pursuant to section 501(c)(3), 501(c)(4), or 501(c)(6) of the United States Internal Revenue Code as amended and in effect on January 1, 2015, as defined by section 1 of this Act, is exempt from property taxation. A business incubator is any facility that supports the development and operation of a number of small start-up businesses. Tenants of the facility may share a number of support services and the tenants may receive technical assistance, business planning, legal, financial, and marketing advice. If any portion of the facility is occupied by an incubated business for more than five years, that portion of the facility shall be taxed as other property of the same class is taxed.

    Section 7. That subdivision (7) of § 10-6A-1 be amended to read:

            (7)    "Income," the sum of adjusted gross income as defined in the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this

Act, and IRA disbursements, the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans disability pensions, all payments received under the federal social security and state unemployment insurance laws, nontaxable interest, life insurance proceeds that exceed twenty thousand dollars, any gift or inheritance that exceeds five hundred dollars, proceeds from a court action, any sale of a personal item that exceeds five hundred dollars, foster care income, and workers' compensation;


    Section 8. That subdivision (5) of § 10-6B-1 be amended to read:

            (5)    "Income," the sum of adjusted gross income as defined in the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, and all nontaxable income, including the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash, public assistance and relief, not including relief granted under this chapter, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans' disability pensions, all payments received under the federal social security and state unemployment insurance laws, nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of "loss of time" insurance, but not including gifts from nongovernmental sources, food stamps, or surplus foods or other relief in kind provided by a public agency less real estate taxes payable on the applicant's principal residence for the year in which application is made;

    Section 9. That subdivision (6) of § 10-18A-1 be amended to read:

            (6)    "Income," the sum of adjusted gross income as defined in the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, and all nontaxable income, including the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief, not including relief granted under this chapter, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans' disability pensions, all payments received under the federal social security and state unemployment insurance laws, nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of loss of time insurance, but not including gifts from nongovernmental sources, food stamps, or surplus foods, or other relief in kind provided by a public agency less real estate taxes payable on the applicant's principal residence for the year in which application is made. However, the reduction in the applicant's income for real estate taxes payable may not exceed four hundred dollars;

    Section 10. That § 10-43-10.1 be amended to read:

    10-43-10.1. Net income, in the case of a financial institution, is taxable income as defined in the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, and reportable for federal income tax purposes for the taxable year, but subject to the adjustments as provided in §§ 10-43-10.2 and 10-43-10.3. If a financial institution has elected to file its federal tax return pursuant to 26 USC § 1362(a), as amended, and in effect on January 1, 2015 of the United States Internal Revenue Code, as defined by section 1 of this Act, net income shall be computed in the same manner and in the same amount as if that institution had continued to file its federal tax return without making the election and the financial institution shall continue to be treated as a separate corporation for the purposes of this chapter. If a financial institution is organized as a limited liability company, the limited liability company shall be treated as a separate corporation for the purpose of this chapter.

    Section 11. That subdivision (7) of § 10-43-10.3 be amended to read:



            (7)    For those financial institutions making an election pursuant to 26 USC § 1362(a), as amended, and in effect on January 1, 2015 of the United States Internal Revenue Code, as defined by section 1 of this Act, imputed federal income taxes in an amount equal to the taxes that would have been paid on net income as defined in § 10-43-10.1 had the financial institution continued to file its federal tax return without making an election to file pursuant to 26 USC § 1362(a); and

    Section 12. That subdivision (5) of § 10-45A-1 be amended to read:

            (5)    "Income," the sum of adjusted gross income as defined in the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, and all nontaxable income, including the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief, not including relief granted under this chapter, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans' disability pensions, all payments received under the federal social security and state unemployment insurance laws, nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of loss of time insurance, but not including gifts from nongovernmental sources, food stamps, or surplus foods, or other relief in kind provided by a public agency, less real estate taxes payable or ten percent of rent paid on the applicant's principal residence for the year in which application is made. However, the reduction in the individual's income may not exceed four hundred dollars;

    Section 13. That § 35-4-11.9 be amended to read:

    35-4-11.9. The renewal fee for any on-sale license issued outside a municipality to a nonprofit organization, recognized as an exempt organization under section 501(c)(7) or 501(c)(19) of the United States Internal Revenue Code, as amended and in effect on January 1, 2015 defined by section 1 of this Act, which will be in operation less than one hundred fifty days each year shall be established by the county commission at a rate not to exceed the rate in the nearest municipality.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\055.wpd
CHAPTER 55

(HB 1071)

Meeting set between county commissioners
and the director of equalization.


        ENTITLED, An Act to revise certain provisions regarding the annual conference between county commissioners and the director of equalization.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-3-14 be amended to read:

    10-3-14. The director of equalization shall meet the county commissioners at the office of the county commissioners on the first Tuesday meeting of April for conference in reference to the performance of the director's duties.

     Signed March 7, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\056.wpd
CHAPTER 56

(HB 1150)

Property tax exemption increased
for local industrial development corporations.


        ENTITLED, An Act to revise certain provisions concerning the property tax exemption provided to local industrial development corporations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-4-8.1 be amended to read:

    10-4-8.1. One hundred Seven hundred fifty thousand dollars of the full and true value of the total amount of real property or portion thereof owned by a local industrial development corporation defined pursuant to § 5-14-23 is exempt from property taxation. The full and true value of the real property that is in excess of one hundred seven hundred fifty thousand dollars shall be taxed as other property of the same class is taxed. If any municipality has more than one local industrial development corporation owning real property within its incorporated boundaries, the total value of exempt property provided by this section shall be equally divided between each local industrial development corporation. No real property located in a tax incremental district, created pursuant to chapter 11-9, may receive a property tax exemption pursuant to this section.

     Signed February 25, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\057.wpd
CHAPTER 57

(SB 3)

Agricultural land assessment, criteria revised.


        ENTITLED, An Act to revise the income criteria for determining if property is classified as agricultural land for property tax purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-6-31.3 be amended to read:

    10-6-31.3. For tax purposes, land is agricultural land if it meets two of the following three criteria:

            (1)    At least thirty-three and one-third percent of the total family gross income of the owner is derived In three of the previous five years, a gross income is derived from the pursuit of agriculture as defined in subdivision (2) of this section or it is a state-owned public shooting area or a state-owned game production area as identified in § 41-4-8 and it is owned and managed by the Department of Game, Fish and Parks that is at least ten percent of the taxable valuation of the bare land assessed as agricultural property, excluding any improvements. Furthermore, at least two thousand five hundred dollars of gross income is annually derived from the pursuit of agriculture from the land. If there is a crop share arrangement, the gross income from the land of both the landlord and tenant

shall be combined and used to meet this criteria;

            (2)    Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees, the rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock, the production of bees and apiary products, or horticulture, all for intended profit pursuant to subdivision (1) of this section. Agricultural real estate also includes woodland, wasteland, and pasture land, but only if the land is held and operated in conjunction with agricultural real estate as defined and it is under the same ownership; or

            (3)    It consists of not less than twenty acres of unplatted land or is a part of a contiguous ownership management unit of not less than eighty acres of unplatted land. The same acreage specifications apply to platted land, excluding land platted as a subdivision, which is in an unincorporated area. However, the board of county commissioners may increase the minimum acre requirement up to one hundred sixty acres.

    For the purposes of this section, the term, management unit, means any parcels of land, whether adjoining or not, under common ownership located within this state and managed and operated as a unit for one or more of the principal uses listed in this section. No parcel of land less than twenty acres within a management unit may be more than twenty air miles from the nearest other parcel within the management unit. If requested by the director of equalization, the owner shall provide supporting documentation of the land contained in the management unit.

    Section 2. That chapter 10-6 be amended by adding a NEW SECTION to read:

    Notwithstanding the provisions of § 10-6-31.3, any state-owned public shooting area or a state-owned game production area as identified pursuant to § 41-4-8 that is owned and managed by the Department of Game, Fish and Parks shall be assessed and taxed as agricultural land.

     Signed March 10, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\058.wpd
CHAPTER 58

(SB 59)

Application of the special annual road funding levy.


        ENTITLED, An Act to revise certain provisions regarding the application of the special annual road funding levy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-12-13 be amended to read:

    10-12-13. The board of county commissioners may levy an annual tax as a reserve fund to be accumulated and used for the purpose of maintaining, repairing, constructing, and reconstructing roads and bridges as follows:

            (1)    A levy not to exceed one dollar and twenty cents per thousand dollars of taxable valuation, if the total taxable valuation of the county is one billion dollars or less:;

            (2)    A levy not to exceed ninety cents per thousand dollars of taxable valuation, if the total taxable valuation of the county is more than one billion dollars but less than two billion dollars; and

            (3)    A levy not to exceed sixty cents per thousand dollars of taxable valuation, if the total taxable valuation of the county is two billion dollars or more.

    Moneys Money in the fund may be expended in the laying out, marking, maintaining, constructing, and reconstructing roads and maintaining, constructing, and reconstructing bridges, under the jurisdiction of the board of county commissioners. The tax levy shall be in addition to all other levies authorized to be made by the board of county commissioners for road and bridge purposes provided for in § 10-12-21. The proceeds of such levy shall be placed in a special fund to be known as the county highway and bridge reserve fund. Any increased tax levy imposed pursuant to this section is exempt from the provisions of chapter 10-13, if the county establishes the amount of revenue payable from taxes on real property pursuant to § 10-12-13.1. However, each year thereafter, the county may increase the amount of revenue payable from property taxes by applying the growth and the index factor pursuant to the provisions of § 10-13-35.

    The total amount of revenue payable from any increased tax levy imposed pursuant to this section may increase no more than the lesser of three percent or the index factor, as defined in § 10-13-38, over the amount of revenue payable in the preceding year. After applying the index factor, a county may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property and any adjustments in taxation of property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the same as property of equal value.

    Section 2. That § 10-12-13.1 be amended to read:

    10-12-13.1. The governing body of the county may, by resolution, impose the increased tax levy provided in § 10-12-13 with an affirmative two-thirds vote of the governing body on or before July fifteenth. The action of the governing body to authorize an increased tax levy shall be published within ten days of the action and shall be published at least twice in each legal newspaper designated by the county. The action to authorize an increased tax levy is subject to the referendum process in accordance with chapter 7-18A.

    The governing body of the county may continue to impose the increased tax levy authorized by this section in subsequent years in accordance with the limitation on the amount of revenue payable from property taxes provided under § 10-12-13.

    The governing body of the county may increase the amount of revenue payable from property taxes in excess of the limitation provided under § 10-12-13 if the increased tax levy is authorized by the governing body of the county in accordance with the requirements of this section.

     Signed March 9, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\059.wpd
CHAPTER 59

(HB 1044)

State aid to education formula revised.


        ENTITLED, An Act to revise the state aid to general education formula.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-12-42 be amended to read:



    10-12-42. For taxes payable in 2016 2017 and each year thereafter, the levy for the general fund of a school district shall be as follows:

            (1)    The maximum tax levy shall be eight dollars and seventy-two and seven tenths cents seven dollars and sixty-three cents per thousand dollars of taxable valuation subject to the limitations on agricultural property as provided in subdivision (2) of this section, and owner-occupied property as provided in subdivision (3) of this section;

            (2)    The maximum tax levy on agricultural property for such school district shall be one dollar and fifty-six and eight tenths cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies; and

            (3)    The maximum tax levy for an owner-occupied single-family dwelling as defined in § 10-13-40 for such school district shall be four three dollars and seven and five tenths cents and sixty-eight and seven-tenths cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies.

    All levies in this section shall be imposed on valuations where the median level of assessment represents eighty-five percent of market value as determined by the Department of Revenue. These valuations shall be used for all school funding purposes. If the district has imposed an excess levy pursuant to § 10-12-43, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section.

     Signed March 25, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\059.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\060.wpd
CHAPTER 60

(HB 1081)

Appropriation to fund tax refunds
for elderly persons and persons with a disability.


        ENTITLED, An Act to make an appropriation to fund tax refunds for elderly persons and persons with a disability, to revise the income eligibility requirements for property and sales tax refunds, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of four hundred fifty thousand dollars ($450,000), or so much thereof as may be necessary, to the Department of Revenue to provide refunds for real property tax and sales tax to elderly and disabled persons pursuant to chapters 10-18A and 10-45A. An amount not to exceed twenty thousand dollars may be used for the administrative costs of this Act.

    Section 2. The secretary of the Department of Revenue shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated by June 30,

2017, shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. That § 10-18A-5 be amended to read:

    10-18A-5. The amount of refund of real property taxes due or paid for a single-member household made pursuant to this chapter shall be according to the following schedule:

    The refund of real  
If household income is     property taxes due  
more than:   but less than   or paid shall be  
$ 0   $5,420 5,630   35%  
5,421 5,631   5,680 5,890   34%  
5,681 5,891   5,940 6,150   33%  
5,941 6,151   6,200 6,410   32%  
6,201 6,411   6,460 6,670   31%  
6,461 6,671   6,720 6,930   30%  
6,721 6,931   6,980 7,190   29%  
6,981 7,191   7,240 7,450   28%  
7,241 7,451   7,500 7,710   27%  
7,501 7,711   7,760 7,970   26%  
7,761 7,971   8,020 8,230   25%  
8,021 8,231   8,280 8,490   24%  
8,281 8,491   8,540 8,750   23%  
8,541 8,751   8,800 9,010   22%  
8,801 9,011   9,060 9,270   21%  
9,061 9,271   9,320 9,530   20%  
9,321 9,531   9,580 9,790   19%  
9,581 9,791   9,840 10,050   18%  
9,841 10,051   10,100 10,310   17%  
10,101 10,311   10,360 10,570   16%  
10,361 10,571   10,620 10,830   15%  
10,621 10,831   10,880 11,090   14%  
10,881 11,091   11,140 11,350   13%  
11,141 11,351   11,400 11,610       12%  
11,401 11,611   11,670 11,880   11%  
over 11,670 11,880     No refund  

    Section 5. That § 10-18A-6 be amended to read:



    10-18A-6. The amount of refund of real property taxes due or paid for a multiple-member household made pursuant to this chapter shall be according to the following schedule:

    The refund of real  
If household income is     property taxes due  
more than:   but not more than   or paid shall be  
$ 0   $9,230 9,520   55%  
9,231 9,521   9,591 9,881   53%  
9,592 9,882   9,952 10,242   51%  
9,953 10,243   10,313 10,603   49%  
10,314 10,604   10,674 10,964   47%  
10,675 10,965   11,035 11,325   45%  
11,036 11,326   11,396 11,686   43%  
11,397 11,687   11,757 12,047   41%  
11,758 12,048   12,118 12,408   39%  
12,119 12,409   12,479 12,769   37%  
12,480 12,770   12,840 13,130   35%  
12,841 13,131   13,201 13,491   33%  
13,202 13,492   13,562 13,852   31%  
13,563 13,853   13,923 14,213   29%  
13,924 14,214   14,284 14,574   27%  
14,285 14,575   14,645 14,935   25%  
14,646 14,936   15,006 15,296   23%  
15,007 15,297   15,367 15,657   21%  
15,368 15,658   15,730 16,020   19%  
over 15,730 16,020     No refund  

    Section 6. That § 10-45A-5 be amended to read:

    10-45A-5. The amount of any claim made pursuant to this chapter by a claimant from a household consisting solely of one person shall be determined as follows:

            (1)    If the claimant's income is five thousand four hundred twenty five thousand six hundred thirty dollars or less, a sum of two hundred fifty-eight dollars;

            (2)    If the claimant's income is five thousand four hundred twenty-one five thousand six hundred thirty dollars and not more than eleven thousand six hundred seventy eleven thousand eight hundred eighty dollars, a sum of forty-six dollars plus three and four-tenths percent of the difference between eleven thousand six hundred seventy eleven thousand eight hundred eighty dollars and the income of the claimant; and

            (3)    If the claimant's income is more than eleven thousand six hundred seventy eleven

thousand eight hundred eighty dollars, no refund.

    Section 7. That § 10-45A-6 be amended to read:

    10-45A-6. The amount of any claim made pursuant to this chapter by a claimant from a household consisting of more than one person shall be determined as follows:

            (1)    If household income is nine thousand two hundred thirty nine thousand five hundred twenty dollars or less, the sum of five hundred eighty-one dollars;

            (2)    If household income is nine thousand two hundred thirty-one nine thousand five hundred twenty dollars and not more than fifteen thousand seven hundred thirty sixteen thousand twenty dollars, a sum of seventy-four dollars plus seven and eight-tenths percent of the difference between fifteen thousand seven hundred thirty sixteen thousand twenty dollars and total household income; and

            (3)    If household income is more than fifteen thousand seven hundred thirty sixteen thousand twenty dollars, no refund.

    Section 8. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 25, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\061.wpd
CHAPTER 61

(HB 1177)

Tax incentives for energy facilities.


        ENTITLED, An Act to revise certain provisions concerning tax incentives for certain energy facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-35-16 be amended to read:

    10-35-16. Terms as used in this section and §§ 10-35-17 to 10-35-21, inclusive, mean:

            (1)    "Collector system," all property used or constructed to interconnect individual wind turbines or solar panels within a wind farm renewable facility into a common project, including inverters, step-up transformers, electrical collection equipment, collector substation transformers, and communication systems;

            (2)    "Company," any person, corporation, limited liability company, association, company, partnership, political subdivision, rural electric cooperative, or any group or combination acting as a unit;

            (3)    "Nameplate capacity," the number of kilowatts a wind farm renewable facility can produce, as assigned to the power units in the wind farm renewable facility by the manufacturer and determined by the secretary;

            (4)    "Renewable facility," any wind farm or solar facility;

            (5)    "Solar facility," all real or personal property used or constructed for the purpose of producing electricity for commercial purposes utilizing solar radiation as an energy source and with a nameplate capacity of at least five thousand kilowatts. The term includes the collector system;

            (6)    "Transmission line," an electric transmission line and associated facilities including the collector system, with a design of one hundred fifteen kilovolts or more;

            (4)(7)    "Wind farm," all real or personal property used or constructed for the purpose of producing electricity for commercial purposes utilizing the wind as an energy source and with a nameplate capacity of at least five thousand kilowatts. The term includes the collector system;

            (5)    "Transmission line," an electric transmission line and associated facilities including the collector system, with a design of one hundred fifteen kilovolts or more.

    Section 2. That § 10-35-17 be amended to read:

    10-35-17. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after July 1 June 30, 2007, and prior to before April 1, 2015, shall pay the alternative annual taxes provided in §§ 10-35-18 and 10-35-19. A wind farm that produces power for the first time on or after April 1 March 31, 2015, or a solar facility, shall pay the alternative annual taxes provided in §§ 10-35-18 and 10-35-19.1. The alternative taxes imposed by §§ 10-35-18, 10-35-19, and 10-35-19.1, are in lieu of all taxes levied by the state, counties, municipalities, school districts, or other political subdivisions of the state on the personal and real property of the company which is used or intended for use as a wind farm renewable facility, but are not in lieu of the retail sales and service tax imposed by chapter 10-45, the use tax imposed by chapter 10-46, or any other tax.

    Section 3. That § 10-35-18 be amended to read:

    10-35-18. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after July 1 June 30, 2007, or a solar facility, shall pay an annual tax equal to three dollars multiplied by the nameplate capacity of the wind farm renewable facility. The tax shall be imposed beginning the first calendar year the wind farm renewable facility generates gross receipts. The tax shall be paid annually to the secretary the first day of February of the following year. The tax for the first calendar year shall be prorated based upon the percentage of the calendar year remaining after the company generates gross receipts. Except as otherwise provided in §§ 10-35-16 to 10-35-21, inclusive, the provisions of chapter 10-59 apply to the administration of the tax.

    Section 4. That § 10-35-19.1 be amended to read:

    10-35-19.1. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a wind farm producing power for the first time on or after April 1 March 31, 2015, shall pay an annual tax of $.00045 per kilowatt hour of electricity produced by the wind farm. Any company owning or holding under lease, or otherwise, real or personal property used, or intended for use, as a solar facility, shall pay an annual tax of $.00090 per kilowatt hour of electricity produced by the solar facility. The owner of a wind farm renewable facility subject to the tax shall file a report with the secretary detailing the amount of electricity in kilowatt-hours that was produced by the wind farm renewable facility for the previous calendar year. The secretary shall prescribe the form of the report. The tax for the electricity produced in a calendar year shall become due and be payable to the secretary on the first day of February of the following year. Except as otherwise provided in §§ 10-35-16 to 10-35-21, inclusive, the provisions of chapter 10-59 apply to

the administration of the tax.

    Section 5. That § 10-35-20 be amended to read:

    10-35-20. The secretary shall deposit the tax imposed by §§ 10-35-18, 10-35-19, and 10-35-19.1 into the wind energy renewable facility tax fund. There is created in the state treasury the wind energy renewable facility tax fund.

    Section 6. That § 10-35-21 be amended to read:

    10-35-21. The secretary shall distribute all of the tax deposited in the wind energy renewable facility tax fund pursuant to § 10-35-18 and twenty percent of the tax deposited in the wind energy renewable facility tax fund pursuant to §§ 10-35-19 and 10-35-19.1 to the county treasurer where the wind farm renewable facility is located. If a wind farm renewable facility is located in more than one county, each county shall receive the same percentage of the tax as the percentage of wind towers or solar facilities in the wind farm renewable facility located in the county. Upon receipt of the taxes, the county auditor shall apportion the tax among the school districts, the county, and the organized townships where a wind tower or solar facility is located. The tax shall be apportioned by the county auditor by allocating fifty percent of the tax to the school district where each wind tower or solar facility is located, fifteen percent to the organized township where each wind tower or solar facility is located, and thirty-five percent to the county. If a wind tower or solar facility is located in a township that is not organized, the unorganized township's share of the tax for that wind tower or solar facility is allocated to the county. The secretary shall distribute the money to the counties on or before the first day of May. Any remaining revenue in the wind energy renewable facility tax fund shall be deposited in the state general fund.

     Signed March 14, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\062.wpd
CHAPTER 62

(SB 53)

Bank franchise tax revisions.


        ENTITLED, An Act to revise certain provisions concerning the bank franchise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That subdivision (4) of § 10-43-1 be amended to read:

            (4)    "Financial institution," any banking institution, production credit association, or savings and loan association organized under the laws of the United States and located or doing business in this state; any bank, savings and loan association, mutual saving bank, or trust company, organized under the laws of this state or of any other state, district, territory, or country, doing business within this state; any person licensed in this state pursuant to chapter 54-4, the installment repayment small loan and consumer finance law; and any person in the business of buying loans, notes, or other evidences of debt except those persons registered as broker-dealers pursuant to chapter 47-31B; and persons in the business of making installment repayment and open-end loans which may be unsecured or secured by real or personal property, which loans are in an aggregate amount exceeding five hundred dollars, which are repaid in two or more installment payments or one lump sum payment extending over a time exceeding thirty days from the day the loan was made except where the loan is made by the person selling the property, incidental to the sale of

the property and where the seller is primarily in the business of selling such real or personal property or except where the loan is made to a related corporation and the primary business of these related corporations is the production and sale of tangible personal property or where the loan is made in the form of an advance to secure the production of equipment to be obtained by the lender or to finance a joint venture between the lender and others which has been formed to produce and sell tangible personal property;


    Section 2. That § 10-43-2 be amended to read:

    10-43-2. An annual tax is hereby imposed on every each financial institution, except those institutions organized under the laws of the United States, doing business in this state for the grant to it of the privilege of transacting or for the actual transaction by it, of or licensed to do business in this state during any part of its tax year.

    Section 3. That § 10-43-2.1 be repealed.

    Section 4. That § 10-43-4 be amended to read:

    10-43-4. The liability for the tax imposed by §§ 10-43-2 and 10-43-2.1 this chapter shall arise upon the first day of each tax year and shall be based upon the net income assignable to this state at the rate of six percent on net income of four hundred million dollars or less; at the rate of five percent on net income exceeding four hundred million dollars but equal to or less than four hundred twenty-five million dollars; at the rate of four percent on the net income exceeding four hundred twenty-five million dollars but equal to or less than four hundred fifty million dollars; at the rate of three percent on the net income exceeding four hundred fifty million dollars but equal to or less than four hundred seventy-five million dollars; at the rate of two percent on the net income exceeding four hundred seventy-five million dollars but equal to or less than five hundred million dollars; at the rate of one percent on the net income exceeding five hundred million dollars but equal to or less than six hundred million dollars; at the rate of one-half of one percent on the net income exceeding six hundred million dollars but equal to or less than one billion two hundred million dollars; and at the rate of one-quarter of one percent on the net income exceeding one billion two hundred million dollars. The tax payable under this section may be no less than two hundred dollars for each authorized location at which the financial institution subject to taxation under § 10-43-2 regularly conducts business.

    Section 5. That § 10-43-5 be amended to read:

    10-43-5. The tax referred to in §§ 10-43-2 and 10-43-2.1 this chapter is in lieu of all other taxes and licenses, state, county, and local, except taxes upon the institutions' real property, taxes upon the institutions' leased sites, taxes upon tangible personal property and products transferred electronically not normally used in extension of credit or acceptance of deposits and the retail sales tax or the use tax on tangible personal property and any product transferred electronically. However, tangible personal property and any product transferred electronically acquired by the financial institution through a foreclosure proceeding are exempt from such other taxes. The institutions taxed by §§ 10-43-2 and 10-43-2.1 are exempt from other net income taxation by this state.

    Section 6. That § 10-43-10.3 be amended to read:

    10-43-10.3. Subtracted from taxable income are:

            (1)    Interest and dividends from obligations of the United States government and its agencies which this state is prohibited by federal law or treaty from taxing by an income tax, a franchise tax, or a privilege tax;

            (2)    Dividends received from financial institutions subject to taxation under this chapter to the

extent such dividends were included in taxable income as determined under the Internal Revenue Code;

            (3)(2)    Taxes imposed upon the financial institution within the tax year, under the Internal Revenue Code excluding any taxes imposed under 26 USC § 1374 and 26 USC § 1375;

            (4)(3)    Any interest expense described in §§ 291(e)(1)(B) and 265(b) of the Internal Revenue Code, which interest expense shall be deductible;

            (5)(4)    Any capital gain from liquidating sales within the twelve-month period beginning on the date on which a financial institution adopts a plan of complete liquidation if all of the assets of the financial institution are distributed in complete liquidation less assets retained to meet claims within the twelve-month period, or from the distribution of property in complete liquidation of the financial institution which is subject to federal corporate income taxes pursuant to § 336 of the Internal Revenue Code;

            (6)(5)    Any adjustment to taxable income due to a change in the method used to compute the federal bad debt deduction where the adjustment has already been included in taxable income for purposes of the tax imposed by this chapter;

            (7)(6)    For those financial institutions making an election pursuant to 26 USC § 1362(a), as amended, and in effect on January 1, 2015, imputed federal income taxes in an amount equal to the taxes that would have been paid on net income as defined in § 10-43-10.1 had the financial institution continued to file its federal tax return without making an election to file pursuant to 26 USC § 1362(a); and

            (8)(7)    For those financial institutions organized as limited liability companies, imputed federal income taxes in an amount equal to the taxes that would have been paid on net income as defined in § 10-43-10.1 had the financial institution elected to file as a subchapter C corporation under the Internal Revenue Code.

    Section 7. That § 10-43-10.4 be amended to read:

    10-43-10.4. No carryback of net operating losses or capital losses may be deducted from net income for state tax purposes.

    Section 8. That § 10-43-10.5 be amended to read:

    10-43-10.5. A deduction may be made for a carryforward of a net operating loss or capital loss. The deduction is limited to the seven tax years immediately following the tax year of the loss. Net income may not be less than zero prior to making the adjustments provided for in §§ 10-43-10.2 and 10-43-10.3 because of a deduction taken for losses not incurred during the tax year for which the return is being filed.

    The provisions of this section only apply to net operating losses or capital losses incurred on or after January 1, 2015.

    Section 9. That § 10-43-24.1 be amended to read:

    10-43-24.1. The payroll factor used in § 10-43-22.1 is a fraction, the numerator of which is the total amount paid in this state during the tax period by the financial institution for compensation, and the denominator of which is the total compensation paid everywhere during the tax period. Compensation does not include any payment to any independent contractor or any other person not classified as an employee.

    Section 10. That § 10-43-30 be amended to read:



    10-43-30. Any person required to file and pay tax pursuant to this chapter and whose tax liability in the previous year exceeded ten thousand dollars shall file with the Department of Revenue a quarterly estimate of the amount of tax due for the current year and make payment of the estimated amount. If the tax year of the person ends on December thirty-first, the estimated amount shall be paid on or before the fifteenth day of January, April, July, and October of each year. If the tax year of the person ends on a date other than December thirty-first, the estimated amount shall be made on or before the fifteenth day of the month following the end of the quarter for which the estimate is due. In determining the amount of each quarterly payment, the taxpayer shall estimate the taxpayer's total tax liability for the entire tax year and make payment of one-fourth of the estimate.

    Each taxpayer shall file the final a return for the tax year, and pay any tax imposed by this chapter, within fifteen days after the taxpayer's federal income tax return is due. For taxpayers required to make quarterly estimated payments, if the total quarterly estimated payments do not equal ninety percent of the total tax due, then interest, but not penalty, accrues at the rate provided in § 10-59-6 and is applied to the amount by which one-fourth of ninety percent of the total tax due exceeds the amount of any quarterly estimate filed or required to be filed from the time the estimate was due until finally paid. Neither interest nor penalty may be imposed on quarterly estimates if each estimate equaled an amount which would have been required on that date had the estimated tax been based upon the tax shown on the previous year's return.

    Any return not filed by the due date or tax due but not paid on by the due date is delinquent and bears penalty and interest as provided in § 10-59-6.

    Section 11. That § 10-43-30.1 be amended to read:

    10-43-30.1. Any taxpayer shall receive an extension of time to file the return required by this chapter to a day not later than six months from the day the return was originally due, if the taxpayer:

            (1)    Files for an extension of time to file the taxpayer's federal income tax return;

            (2)    Files a copy of the federal income tax return extension request with the Department of Revenue on or before the day the return was originally due; and

            (3)    Makes a reasonable estimate of the amount of tax due and pays that amount with or prior to the request for extension of time to file.

    If the time for filing the return is extended at the request of the taxpayer, and the amount of tax due exceeds the reasonable estimate paid pursuant to subdivision (3), interest, but not penalty, shall be added to the difference at the same rate as provided for in § 10-59-6 from the time the payments were return was originally due until the additional taxes due are paid.

    Section 12. That § 10-43-31 be repealed.

    Section 13. That § 10-43-32 be repealed.

    Section 14. That § 10-43-34 be amended to read:

    10-43-34. Every corporation taxable under this chapter shall make a return and the return shall be sworn to by the president, vice-president, or other principal officer, and by the treasurer or assistant treasurer. Before a corporation may be dissolved and its assets distributed, the corporation shall make a return for any settlement of the tax for any income earned in the income year up to its final date of dissolution.

    Section 15. That § 10-43-42.1 be amended to read:

    10-43-42.1. The provisions of this chapter shall be administered by the secretary of revenue and

the secretary may promulgate rules, pursuant to chapter 1-26, concerning:

            (1)    The procedure for filing tax returns and payment of the tax;

            (2)    The type of accounting to be used;

            (3)    The definition and deductibility of net federal income taxes; and

            (4)    Determining the The application of the tax and exemptions; and

            (5)    The records to be retained by the taxpayer.

    Section 16. That § 10-43-43.1 be amended to read:

    10-43-43.1. Every Each person subject to tax under this chapter shall make and keep for a period of six years such after federal taxable income has been finally determined by the United States any records as required by the secretary of revenue or otherwise necessary for the administration of this chapter. Such books and documents The records shall, at all times during business hours of the day, be subject to inspection by the secretary of revenue or his duly authorized agents and employees to determine the amount of tax due.

    If in the normal conduct of the business, the required records are maintained and kept at an office outside the State of South Dakota, it shall be a sufficient compliance with this section if the records are made available for audit and examination by the Department of Revenue at the office outside of South Dakota.

    Section 17. That § 10-43-62 be repealed.

    Section 18. That § 10-43-63 be repealed.

    Section 19. That § 10-43-64 be repealed.

    Section 20. That § 10-43-65 be repealed.

    Section 21. That § 10-43-66 be repealed.

    Section 22. That § 10-43-67 be repealed.

    Section 23. That § 10-43-69 be repealed.

    Section 24. That § 10-43-70 be repealed.

    Section 25. That § 10-43-71 be repealed.

    Section 26. That § 10-43-72 be repealed.

    Section 27. That § 10-43-75.1 be repealed.

    Section 28. That § 10-43-77 be amended to read:

    10-43-77. The county treasurer upon receipt of the funds, remitted to the county pursuant to §§ 10-43-75.1 and § 10-43-76, shall apportion and distribute the funds between the taxing subdivisions, including the county, in the same proportion as the average of personal real property taxes assessed levied in each taxing subdivision, including the county, for calendar years 1972, 1973, 1974, 1975, and 1976 were distributed in the previous year as determined and certified by the secretary of revenue.



    For any school district affected by a consolidation on or after July 1, 2003, as defined in § 13-6-1, the successor school district shall receive the funds allocated to each of the former school districts. For any school district eliminated or subdivided by a reorganization on or after July 1, 2003, as defined in § 13-6-1, each successor school district shall receive a portion of the funds allocated to the former school district. Each successor school district's portion of the funds shall be based upon the percentage of the total taxable valuation of the former school district transferred to the successor school district, at the time of the reorganization. Any amount received by the county and taxing subdivisions pursuant to this section may upon receipt be used to support the functions of such taxing subdivision.

    Section 29. That § 10-43-78 be repealed.

    Section 30. That § 10-43-82 be repealed.

    Section 31. That § 10-43-92 be amended to read:

    10-43-92. As used in § 10-43-91, the term, extended term trust, means any trust which has no limitation on duration which would require the trust to cease and terminate on a date not later than twenty-one years beyond any life in being. Extended term trusts may not include any trust subject to the Employee Retirement Income Security Act of 1974, as amended as of and in effect on January 1, 1997 2016.

    Section 32. The provisions of this Act only apply to returns that are related to tax years ending in 2015 or thereafter and filed after December 31, 2015.

     Signed March 9, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\063.wpd
CHAPTER 63

(SB 52)

Tax on banks and financial corporations
reporting procedures revised.


        ENTITLED, An Act to establish procedures for reporting federal tax changes for purposes of the bank franchise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 10-43 be amended by adding a NEW SECTION to read:

    A taxpayer who has filed a return with the department for a specific tax year and subsequently has a change or correction to the taxpayer's net income, as a result of audit or adjustment by the United States, that increases the taxpayer's taxable income in this state, shall report the change or correction in writing to the secretary. The report shall be in the form of a supplementary return and shall be filed within one hundred twenty days of the final adjustment by the United States. Any additional tax due and applicable interest shall be paid at the time of filing the supplementary return. The provisions of this section apply notwithstanding the limitation period for collection of taxes provided under § 10-59-16.

    Section 2. That chapter 10-43 be amended by adding a NEW SECTION to read:

    A taxpayer who has filed a return with the department for a specific tax year and subsequently

has a change or correction to the taxpayer's net income, as a result of audit or adjustment by the United States, that decreases the taxpayer's taxable income in this state, may report the change or correction in writing to the secretary. The report shall be in the form of a supplementary return and shall be filed within one hundred twenty days of the final adjustment by the United States. Any refund for overpayment of tax, penalty, or interest shall be made pursuant to §§ 10-59-22, 10-59-22.1, 10-59-23, and 10-59-24. The provisions of this section apply notwithstanding §§ 10-59-17 and 10-59-19.

    No court has jurisdiction of a suit to recover the taxes, penalties, or interest unless the taxpayer seeking the recovery of the tax complies with the provisions of this section.

    Section 3. That chapter 10-43 be amended by adding a NEW SECTION to read:

    If a taxpayer fails to file a supplementary return as required by section 1 of this Act, the secretary may determine the amount of additional tax due, if any, based on information available to the secretary. The secretary's determination of additional tax due, together with interest and penalty as provided in § 10-59-6, shall be made within six years after the time the supplementary return was due.

    The secretary may also impose a penalty of five thousand dollars or ten percent of the additional tax due, whichever is greater, for failure to timely file a supplementary return and pay any additional tax and applicable interest as required by section 1 of this Act. This penalty is in addition to all other penalties provided by law and shall be deposited in the state general fund.

    Section 4. That § 10-43-50 be repealed.

    Section 5. That § 10-43-51 be repealed.

    Section 6. That § 10-43-51.1 be repealed.

    Section 7. That § 10-43-55 be repealed.

    Section 8. That § 10-43-60 be repealed.

    Section 9. That ARSD 64:26:02:05 be repealed.

    Section 10. That ARSD 64:26:02:06 be repealed.

    Section 11. The provisions of this Act only apply to returns that are related to tax years ending in 2015 or thereafter and filed after December 31, 2015.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\063.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\064.wpd
CHAPTER 64

(HB 1120)

Harvesting timber defined as an agricultural purpose.


        ENTITLED, An Act to revise the definition of agricultural purposes used for the administration of the sales tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That subdivision (1) of 10-45-1 be amended to read:

            (1)    "Agricultural purposes," the producing, raising, growing, or harvesting of food or fiber upon agricultural land, including dairy products, livestock, and crops. The services of custom harvesters, chemical applicators, fertilizer spreaders, hay grinders, and cultivators are considered agricultural purposes. The harvesting of timber on land within the state is considered an agricultural purpose;


     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\064.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\065.wpd
CHAPTER 65

(HB 1182)

Sales and use tax increase.


        ENTITLED, An Act to increase the state sales tax, the state use tax, the excise tax on farm machinery, and amusement device tax for the purpose of increasing education funding and reducing property taxes, to provide for certain school district reporting and penalties, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-45-2 be amended to read:

    10-45-2. There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and one-half percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the State of South Dakota to consumers or users.

    Section 2. That § 10-45-5 be amended to read:

    10-45-5. There is imposed a tax at the rate of four and one-half percent upon the gross receipts of any person from engaging or continuing in any of the following businesses or services in this state: abstracters; accountants; ancillary services; architects; barbers; beauty shops; bill collection services; blacksmith shops; car washing; dry cleaning; dyeing; exterminators; garage and service stations; garment alteration; cleaning and pressing; janitorial services and supplies; specialty cleaners; laundry; linen and towel supply; membership or entrance fees for the use of a facility or for the right to purchase tangible personal property, any product transferred electronically, or services; photography; photo developing and enlarging; tire recapping; welding and all repair services, except repair services for farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes; cable television; and rentals of tangible personal property except leases of tangible personal property between one telephone company and another telephone company, motor vehicles as defined pursuant to § 32-5-1 leased under a single contract for more than twenty-eight days and mobile homes. However, the specific enumeration of businesses and professions made in this section does not, in any way, limit the scope and effect of the provisions of § 10-45-4.

    Section 3. That § 10-45-5.3 be amended to read:

    10-45-5.3. There is imposed, at the rate of four and one-half percent, an excise tax on the gross receipts of any person engaging in oil and gas field services (group no. 138) as enumerated in the

Standard Industrial Classification Manual, 1987, as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President.

    Section 4. That § 10-45-6 be amended to read:

    10-45-6. There is hereby imposed a tax of four and one-half percent upon the gross receipts from sales, furnishing, or service of gas, electricity, and water, including the gross receipts from such sales by any municipal corporation furnishing gas, and electricity, to the public in its proprietary capacity, except as otherwise provided in this chapter, when sold at retail in the State of South Dakota to consumers or users.

    Section 5. That § 10-45-6.1 be amended to read:

    10-45-6.1. Except as provided in § 10-45-6.2, there is hereby imposed a tax of four and one-half percent upon the gross receipts from providing any intrastate, interstate, or international telecommunications service that originates or terminates in this state and that is billed or charged to a service address in this state, or that both originates and terminates in this state. However, the tax imposed by this section does not apply to:

            (1)    Any eight hundred or eight hundred type service unless the service both originates and terminates in this state;

            (2)    Any sale of a telecommunication service to a provider of telecommunication services, including access service, for use in providing any telecommunication service; or

            (3)    Any sale of interstate telecommunication service provided to a call center that has been certified by the secretary of revenue to meet the criterion established in § 10-45-6.3 and the call center has provided to the telecommunications service provider an exemption certificate issued by the secretary indicating that it meets the criterion.

    If a call center uses an exemption certificate to purchase services not meeting the criterion established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, and interest.

    Section 6. That § 10-45-6.2 be amended to read:

    10-45-6.2. There is hereby imposed a tax of four and one-half percent upon the gross receipts of mobile telecommunications services, as defined in 4 U.S.C. § 124(7) as of January 1, 2002, that originate and terminate in the same state and are billed to a customer with a place of primary use in this state or are deemed to have originated or been received in this state and to be billed or charged to a service address in this state if the customer's place of primary use is located in this state regardless of where the service actually originates or terminates. Notwithstanding any other provision of this chapter and for purposes of the tax imposed by this section, the tax imposed upon mobile telecommunication services shall be administered in accordance with 4 U.S.C. §§ 116-126 as in effect on July 28, 2000.

    Section 7. That § 10-45-8 be amended to read:

    10-45-8. There is imposed a tax of four and one-half percent upon the gross receipts from all sales of tickets or admissions to places of amusement and athletic contests or events, except as otherwise provided in this chapter.

    Section 8. That § 10-45-71 be amended to read:

    10-45-71. There is imposed a tax of four and one-half percent on the gross receipts from the transportation of passengers. The tax imposed by this section shall apply to any transportation of passengers if the passenger boards and exits the mode of transportation within this state.



    Section 9. That § 10-46-2.1 be amended to read:

    10-46-2.1. For the privilege of using services in South Dakota, except those types of services exempted by § 10-46-17.3, there is imposed on the person using the service an excise tax equal to four and one-half percent of the value of the services at the time they are rendered. However, this tax may not be imposed on any service rendered by a related corporation as defined in subdivision 10-43-1(11) for use by a financial institution as defined in subdivision 10-43-1(4) or on any service rendered by a financial institution as defined in subdivision 10-43-1(4) for use by a related corporation as defined in subdivision 10-43-1(11). For the purposes of this section, the term related corporation includes a corporation which together with the financial institution is part of a controlled group of corporations as defined in 26 U.S.C. § 1563 as in effect on January 1, 1989, except that the eighty percent ownership requirements set forth in 26 U.S.C. § 563(a)(2)(A) for a brother-sister controlled group are reduced to fifty-one percent. For the purpose of this chapter, services rendered by an employee for the use of his employer are not taxable.

    Section 10. That § 10-46-2.2 be amended to read:

    10-46-2.2. An excise tax is imposed upon the privilege of the use of rented tangible personal property and any product transferred electronically in this state at the rate of four and one-half percent of the rental payments upon the property.

    Section 11. That § 10-46-58 be amended to read:

    10-46-58. There is imposed a tax of four and one-half percent on the privilege of the use of any transportation of passengers. The tax imposed by this section shall apply to any transportation of passengers if the passenger boards and exits the mode of transportation within this state.

    Section 12. That § 10-46-69 be amended to read:

    10-46-69. There is hereby imposed a tax of four and one-half percent upon the privilege of the use of mobile telecommunications services, as defined in 4 U.S.C. § 124(7) as of January 1, 2002, that originate and terminate in the same state and are billed to a customer with a place of primary use in this state. Notwithstanding any other provision of this chapter and for purposes of the tax imposed by this section, the tax imposed upon mobile telecommunication services shall be administered in accordance with 4 U.S.C. §§ 116-126 as in effect on July 28, 2000.

    Section 13. That § 10-46-69.1 be amended to read:

    10-46-69.1. Except as provided in § 10-46-69, there is hereby imposed a tax of four and one-half percent upon the privilege of the use of any intrastate, interstate, or international telecommunications service that originates or terminates in this state and that is billed or charged to a service address in this state, or that both originates and terminates in this state. However, the tax imposed by this section does not apply to:

            (1)    Any eight hundred or eight hundred type service unless the service both originates and terminates in this state;

            (2)    Any sale of a telecommunication service to a provider of telecommunication services, including access service, for use in providing any telecommunication service; or

            (3)    Any sale of interstate telecommunication service provided to a call center that has been certified by the secretary of revenue to meet the criterion established in § 10-45-6.3 and the call center has provided to the telecommunications service provider an exemption certificate issued by the secretary indicating that it meets the criterion.

    If a call center uses an exemption certificate to purchase services not meeting the criterion

established in § 10-45-6.3, the call center is liable for the applicable tax, penalty, and interest.

    Section 14. That § 10-46-69.2 be amended to read:

    10-46-69.2. There is hereby imposed a tax of four and one-half percent upon the privilege of the use of any ancillary services.

    Section 15. That § 10-46E-1 be amended to read:

    10-46E-1. There is hereby imposed an excise tax of four and one-half percent on the gross receipts from the sale, resale, or lease of farm machinery, attachment units, and irrigation equipment used exclusively for agricultural purposes. However, if any trade-in or exchange of used farm machinery, attachment units, and irrigation equipment is involved in the transaction, the excise tax is only due and may only be collected on the cash difference.

    Section 16. That § 10-58-1 be amended to read:

    10-58-1. There is imposed upon owners and operators a special amusement excise tax of four and one-half percent of the gross receipts from the operation of any mechanical or electronic amusement device.

    Section 17. That the code be amended by adding a NEW SECTION to read:

    From the proceeds of this Act, each year sixty-three percent shall be dedicated to increasing teacher salaries by school districts, thirty-four percent shall be dedicated to reducing the property tax levies for general education for all classes of property, and three percent shall be dedicated to increasing instructor salaries to competitive levels at postsecondary technical institutes.

    Section 18. That the code be amended by adding a NEW SECTION to read:

    The presidents of the postsecondary technical institutes, acting pursuant to rules established by the State Board of Education, shall use the money provided pursuant to this Act to increase instructor salaries at each postsecondary technical institute.

    Section 19. That the code be amended by adding a NEW SECTION to read:

    If the state is able to enforce the obligation to collect and remit sales tax on remote sellers who deliver tangible personal property, products transferred electronically, or services directly to the citizens of South Dakota, the additional net revenue from such obligation shall be used to reduce the rate of certain taxes. The rate of tax imposed by §§ 10-45-2, 10-45-5, 10-45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-58, 10-46_69, 10-46-69.1, 10-46-69.2, 10-46E-1, and 10-58-1 shall be reduced by one-tenth percent on July first following the calendar year for which each additional twenty million dollar increment of net revenue is collected and remitted by such remote sellers. However, the rate of tax imposed by §§ 10-45-2, 10-45-5, 10-45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-58, 10-46_69, 10-46-69.1, 10-46-69.2, 10-46E-1, and 10-58-1 may not be reduced below four percent pursuant to the provisions of this section.

    Section 20. That § 13-8-47 be amended to read:

    13-8-47. Before the first day of August every school board shall file an annual report with the Department of Education. The report shall contain all the educational and financial information and statistics of the school district as requested in a format established by the Department of Education. The report shall also contain, for each month of the fiscal year, the month-end cash balances of the school district's general fund, capital outlay fund, pension fund, and special education fund. The report shall also contain the following information for the district from the preceding fiscal year:



            (1)    Total teacher compensation, which is the total amount spent on instructional salaries and benefits for certified instructional staff;

            (2)    The total amount spent on instructional salaries for certified instructional staff;

            (3)    The total amount spent on benefits for certified instructional staff;

            (4)    The total number of certified instructional staff employed by the school district; and

            (5)    Any other information necessary to comply with the provisions of this Act.

    The business manager with assistance of the secretary of the Department of Education shall make the annual report, and it shall be approved by the school board. The business manager shall sign the annual report and file a copy with the Department of Education as provided in § 13-13-37. The division shall audit the report and return one copy to the school district.

    Reports not filed prior to August thirtieth are considered past due and are subject to the past-due provisions of § 13-13-38.

    Section 21. That the code be amended by adding a NEW SECTION to read:

    The Department of Education shall calculate the following for each school district:

            (1)    The average teacher salary, based on data collected pursuant to §§ 13-8-47 and 13-3-51;

            (2)    The increase in state aid to general education funding, excluding any effect due to change in the school district's fall enrollment and less the amount of revenue generated in school fiscal year 2016 pursuant to § 13-10-6 as a percentage increase, from fiscal year 2016 to fiscal year 2017; and

            (3)    The increase in average teacher compensation as a percentage increase, as defined in § 13-8-47, from fiscal year 2016 to fiscal year 2017.

    For each school district, the district's increase in average teacher compensation from fiscal year 2016 to 2017 shall be equal to at least eighty-five percent of the district's increase in state aid to general education funding, as defined in subdivision (2), from fiscal year 2016 to fiscal year 2017.

    If a school district fails to comply with the requirements of this section, state aid to general education funding to the district in fiscal year 2018 shall be decreased by an amount equal to fifty percent of the amount calculated in subdivision (2). For fiscal years 2019, 2020, and 2021, if a district's average teacher compensation is less than the district's average teacher compensation in fiscal year 2017, state aid to general education funding to the district in the following fiscal year shall be reduced by an amount equal to five hundred dollars for each teacher employed in the school district.

    A school district may request a waiver from any penalty imposed under this section from the School Finance Accountability Board created in section 22 of this Act.

    Section 22. That the code be amended by adding a NEW SECTION to read:

    There is hereby created the School Finance Accountability Board within the Department of Education. The board shall consist of five members appointed by the Governor. The members shall serve a term of four years. The board may recommend that a penalty against a school district imposed under section 21 of this Act be waived, in whole or in part, if the district can demonstrate that its failure to comply with section 21 of this Act is due to special circumstances.

    The School Finance Accountability Board shall promulgate rules, pursuant to chapter 1-26, to establish the appeals process provided for in section 21 of this Act, and to establish the factors that may be taken into account when considering a waiver requested by a school district, which shall include the impact of retirements.

    Any waiver recommended by the School Finance Accountability Board must be approved by the Joint Committee on Appropriations or the Interim Committee on Appropriations. The Department of Education shall annually report to the Governor and the Legislature the information collected pursuant to § 13-8-47 and section 21 of this Act.

    Section 23. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect on June 1, 2016.

     Signed March 11, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\065.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\066.wpd
CHAPTER 66

(HB 1204)

Sales and use tax exemption for nonprofit corporations
created for fire protection.


        ENTITLED, An Act to provide a sales and use tax exemption for certain nonprofit corporations created for the purpose of fire protection.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 10-45 be amended by adding a NEW SECTION to read:

    There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the gross receipts from sales of tangible personal property, any product transferred electronically, and services to any nonprofit corporation created for the purpose of fire protection that is controlled by any political subdivision of this state.

    Section 2. That chapter 10-46 be amended by adding a NEW SECTION to read:

    There are hereby specifically exempted from the provisions of this chapter and from the computation of the amount of tax imposed by it, the purchases of tangible personal property, any product transferred electronically, and services by any nonprofit corporation created for the purpose of fire protection that is controlled by any political subdivision of this state.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\066.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\067.wpd
CHAPTER 67

(HB 1041)

Insurance company premium and annuity taxes,
time to recover overpaid tax limited.


        ENTITLED, An Act to revise certain provisions regarding the recovery of certain insurance company premium and annuity taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-55A-2 be amended to read:

    10-55A-2. Beginning with the tax year 1993, a A person seeking recovery of an allegedly overpaid tax shall file a claim for recovery, with the secretary, within one year from the due date of the annual statement under § 58-6-75. A claim for recovery not filed within one year of the due date is barred. For claims correctly filed prior to July 1, 1993, the director shall send by certified mail to each insurer a summary of the amount shown on file with the Division of Insurance for the 1992 tax year and all prior years. The insurer has thirty days from receipt of the summary to file a protest of that amount together with a corrected amount and substantiating documentation. If the insurer fails to file a protest within the thirty days, the amount set by the director of insurance is correct and any further claim by the insurer is barred. An insurer may request an extension of thirty days in writing and the director may grant an extension of not more than thirty days. This does not allow an insurer which did not file correctly under the provisions of this section before July 1, 1993, to now file for any overpayment of taxes.

    Section 2. That § 10-55A-11 be repealed.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\067.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\068.wpd
CHAPTER 68

(HB 1050)

Obsolete mini-storage tax refund repealed.


        ENTITLED, An Act to repeal certain obsolete mini-storage tax refund provisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 10-59-42 be repealed.

    Section 2. That § 10-59-43 be repealed.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\068.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\069.wpd
CHAPTER 69

(HB 1051)

Automated sales suppression devices regulated.


        ENTITLED, An Act to prohibit the use of certain automated sales suppression devices and to provide penalties for their use.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 10-59 be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Automated sales suppression device," a software program accessed through any method that falsifies the electronic records, transaction data, or transaction reports of electronic cash registers and other point-of-sale systems;

            (2)    "Electronic cash register," a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data or transaction reports;

            (3)    "Phantom-ware," a programming option embedded in the operating system or hardwired into the electronic cash register that can be used to create a false till, or eliminate or manipulate transaction data before it is entered in the original till;

            (4)    "Transaction data," information regarding items purchased by a customer, the price for each item, a taxability determination for each item, a segregated tax amount for each item subject to tax, the amount of cash or credit tendered, the amount returned to the customer in change, the date and time of purchase, the name, address, and identification number of the vendor, and the receipt or invoice number of the transaction;

            (5)    "Transaction report," a report documenting sales, tax collected, media totals, discount voids, or other transaction data of an electronic cash register for a given day or shift, or any report documenting actions of an electronic cash register.

    Section 2. That chapter 10-59 be amended by adding a NEW SECTION to read:

    It is unlawful to knowingly own, sell, rent, lease, purchase, install, transfer, possess, use, access, design, manufacture, or program any automated sales suppression device or phantom-ware. A violation of this section is a Class 5 felony.

    Section 3. That chapter 10-59 be amended by adding a NEW SECTION to read:

    Any person convicted of a violation under section 2 of this Act shall be assessed a civil penalty at the time of sentencing in addition to, and not in substitution for, any other penalties provided by law for the offense in the amount of ten thousand dollars for each return period in which sales data, transaction data, or transaction reports were altered. However, the civil penalty may not exceed one hundred twenty thousand dollars. The civil penalty shall be deposited in the state general fund.

    Section 4. That chapter 10-59 be amended by adding a NEW SECTION to read:


    In addition to any civil or criminal penalty, any person violating section 2 of this Act is liable for all sales and use tax, contractor's excise tax, or any other tax imposed by title 10, including any municipal sales and use tax, and all associated penalties and interest due the state as a result of the use of an automated sales suppression device or phantom-ware.

    Section 5. That chapter 10-59 be amended by adding a NEW SECTION to read:

    An automated sales suppression device or phantom-ware or any cash register or device containing an automated sales suppression device or phantom-ware is contraband and may be seized without a warrant by the secretary, agents or employees of the secretary, or any law enforcement officer of this state. The disposition of any property seized under this section shall be conducted pursuant to chapter 23A-37.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\069.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\070.wpd
CHAPTER 70

(SB 106)

The collection of sales taxes from certain out-of-state sellers.


        ENTITLED, An Act to provide for the collection of sales taxes from certain remote sellers, to establish certain Legislative findings, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding any other provision of law, any seller selling tangible personal property, products transferred electronically, or services for delivery into South Dakota, who does not have a physical presence in the state, is subject to chapters 10-45 and 10-52, shall remit the sales tax and shall follow all applicable procedures and requirements of law as if the seller had a physical presence in the state, provided the seller meets either of the following criteria in the previous calendar year or the current calendar year:

            (1)    The seller's gross revenue from the sale of tangible personal property, any product transferred electronically, or services delivered into South Dakota exceeds one hundred thousand dollars; or

            (2)    The seller sold tangible personal property, any product transferred electronically, or services for delivery into South Dakota in two hundred or more separate transactions.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding any other provision of law, and whether or not the state initiates an audit or other tax collection procedure, the state may bring a declaratory judgment action under chapter 21-24 in any circuit court against any person the state believes meets the criteria of section 1 of this Act to establish that the obligation to remit sales tax is applicable and valid under state and federal law. The circuit court shall act on this declaratory judgment action as expeditiously as possible and this action shall proceed with priority over any other action presenting the same question in any other venue.

    In this action, the court shall presume that the matter may be fully resolved through a motion to dismiss or a motion for summary judgment. However, if these motions do not resolve the action,

any discovery allowed by the court may not exceed the provisions of subdivisions 15-6-73(2) and (4).

    The provisions of § 10-59-34, along with any other provisions authorizing attorney's fees, do not apply to any action brought pursuant to this Act or any appeal from any action brought pursuant to this Act.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    The filing of the declaratory judgment action established in this Act by the state operates as an injunction during the pendency of the action, applicable to each state entity, prohibiting any state entity from enforcing the obligation in section 1 of this Act against any taxpayer who does not affirmatively consent or otherwise remit the sales tax on a voluntary basis. The injunction does not apply if there is a previous judgment from a court establishing the validity of the obligation in section 1 of this Act with respect to the particular taxpayer.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Any appeal from the decision with respect to the cause of action established by this Act may only be made to the state Supreme Court. The appeal shall be heard as expeditiously as possible.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    No obligation to remit the sales tax required by this Act may be applied retroactively.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    If an injunction provided by this Act is lifted or dissolved, in general or with respect to a specific taxpayer, the state shall assess and apply the obligation established in section 1 of this Act from that date forward with respect to any taxpayer covered by the injunction.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    A taxpayer complying with this Act, voluntarily or otherwise, may only seek a recovery of taxes, penalties, or interest by following the recovery procedures established pursuant to chapter 10-59. However, no claim may be granted on the basis that the taxpayer lacked a physical presence in the state and complied with this Act voluntarily while covered by the injunction provided in section 3 of this Act.

    Nothing in this Act limits the ability of any taxpayer to obtain a refund for any other reason, including a mistake of fact or mathematical miscalculation of the applicable tax.

    No seller who remits sales tax voluntarily or otherwise under this Act is liable to a purchaser who claims that the sales tax has been over-collected because a provision of this Act is later deemed unlawful.

    Nothing in this Act affects the obligation of any purchaser from this state to remit use tax as to any applicable transaction in which the seller does not collect and remit or remit an offsetting sales tax.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    The Legislature finds that:

            (1)    The inability to effectively collect the sales or use tax from remote sellers who deliver tangible personal property, products transferred electronically, or services directly into

South Dakota is seriously eroding the sales tax base of this state, causing revenue losses and imminent harm to this state through the loss of critical funding for state and local services;

            (2)    The harm from the loss of revenue is especially serious in South Dakota because the state has no income tax, and sales and use tax revenues are essential in funding state and local services;

            (3)    Despite the fact that a use tax is owed on tangible personal property, any product transferred electronically, or services delivered for use in this state, many remote sellers actively market sales as tax free or no sales tax transactions;

            (4)    The structural advantages of remote sellers, including the absence of point-of-sale tax collection, along with the general growth of online retail, make clear that further erosion of this state's sales tax base is likely in the near future;

            (5)    Remote sellers who make a substantial number of deliveries into or have large gross revenues from South Dakota benefit extensively from this state's market, including the economy generally, as well as state infrastructure;

            (6)    In contrast with the expanding harms caused to the state from this exemption of sales tax collection duties for remote sellers, the costs of that collection have fallen. Given modern computing and software options, it is neither unusually difficult nor burdensome for remote sellers to collect and remit sales taxes associated with sales into South Dakota;

            (7)    As Justice Kennedy recently recognized in his concurrence in Direct Marketing Association v. Brohl, the Supreme Court of the United States should reconsider its doctrine that prevents states from requiring remote sellers to collect sales tax, and as the foregoing findings make clear, this argument has grown stronger, and the cause more urgent, with time;

            (8)    Given the urgent need for the Supreme Court of the United States to reconsider this doctrine, it is necessary for this state to pass this law clarifying its immediate intent to require collection of sales taxes by remote sellers, and permitting the most expeditious possible review of the constitutionality of this law;

            (9)    Expeditious review is necessary and appropriate because, while it may be reasonable notwithstanding this law for remote sellers to continue to refuse to collect the sales tax in light of existing federal constitutional doctrine, any such refusal causes imminent harm to this state;

            (10)    At the same time, the Legislature recognizes that the enactment of this law places remote sellers in a complicated position, precisely because existing constitutional doctrine calls this law into question. Accordingly, the Legislature intends to clarify that the obligations created by this law would be appropriately stayed by the courts until the constitutionality of this law has been clearly established by a binding judgment, including, for example, a decision from the Supreme Court of the United States abrogating its existing doctrine, or a final judgment applicable to a particular taxpayer; and

            (11)    It is the intent of the Legislature to apply South Dakota's sales and use tax obligations to the limit of federal and state constitutional doctrines, and to thereby clarify that South Dakota law permits the state to immediately argue in any litigation that such constitutional doctrine should be changed to permit the collection obligations of this Act.

    Section 9. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist. This Act shall be in full force and effect

on the first day of the first month that is at least fifteen calendar days from the date this Act is signed by the Governor.

     Signed March 22, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\070.wpd

PLANNING, ZONING AND HOUSING PROGRAMS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\071.wpd
CHAPTER 71

(HB 1140)

County zoning adjustments.


        ENTITLED, An Act to revise certain provisions regarding county zoning.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 11-2-30 be amended to read:

    11-2-30. After the hearing, the board shall by resolution or ordinance, as appropriate, either adopt or reject the amendment, supplement, change, modification, or repeal, with or without changes. Consideration of any changes to the proposed amendment, supplement, change, modification, or repeal may only be done if the time and place of the hearing is published at least ten days in advance in a legal newspaper of the county. If adopted, the board shall publish a notice of the fact of adoption once in a legal newspaper of such the county and take effect on the twentieth day after its publication. The provisions of § 11-2-22 are applicable to this section.

    Section 2. That § 11-2-55 be amended to read:

    11-2-55. Appeals An appeal to the board of adjustment may be taken by any person aggrieved or by any officer, department, board, or bureau of the county affected by any decision of the administrative officer, that is not a ministerial act or other preliminary act to bring an application or matter before the board for hearing and a final decision. The appeal shall be taken within a reasonable time, as provided by the rules of the board of adjustment, by filing with the officer from whom the appeal is taken and with the board of adjustment a notice of appeal specifying the grounds of the appeal. The officer from whom the appeal is taken shall transmit to the board of adjustment all the papers constituting the record upon which the action appealed from was taken. All appeals relating to a particular action or property shall be consolidated and heard on an expedited basis.

    Section 3. That § 11-2-56 be amended to read:

    11-2-56. An appeal to the board of adjustment stays all proceedings in the action appealed from, except ministerial or other preliminary acts necessary to allow consolidated appeals on all matters prior to final decision by the board of adjustment, or unless the officer from whom the appeal is taken files a certificate that by reason of facts stated in the certificate a stay would in the officer's opinion cause imminent peril to life or property. In such case proceedings may not be stayed other than by a restraining order which may be granted by the board of adjustment or by a court of record, on application, on notice to the officer from whom the appeal is taken and on due cause shown.

    Section 4. That § 11-2-59 be amended to read:



    11-2-59. The concurring vote of two-thirds of the members of the board of adjustment is necessary to reverse any order, requirement, decision, or determination of any such administrative official, or to decide in favor of the applicant on any matter upon which it is required to pass under any such ordinance, except as to conditional uses where the county has chosen to adopt a different standard, as set forth in subdivision 11-2-53(3), or to effect any variation in the ordinance.

    Section 5. That § 11-2-60 be amended to read:

    11-2-60. In lieu of appointing the board of adjustment provided by § 11-2-49, the board of county commissioners having adopted and in effect a zoning ordinance may act as and perform all the duties and exercise the powers of the board of adjustment. The chair of the board of county commissioners is chair of the board of adjustment as so composed. The concurring vote of at least two-thirds of the members of the board as so composed is necessary to reverse any order, requirement, decision, or determination of any administrative official, or to decide in favor of the appellant on any matter upon which it is required to pass under any zoning ordinance, except as to conditional uses where the county has chosen to adopt a different standard as set forth in subdivision 11-2-53(3), or to effect any variation in the ordinance.

    Section 6. That § 11-2-61 be amended to read:

    11-2-61. Any person or persons, jointly or severally, aggrieved by any decision of the board of adjustment, or any taxpayer, or any officer, department, board, or bureau of the county, aggrieved by any decision of the board of adjustment may present to a court of record a petition duly verified, setting forth that the decision is illegal, in whole or in part, specifying the grounds of the illegality. The petition shall be presented to the court within thirty days after the filing of the decision in the office of the board of adjustment.

    Section 7. That § 11-4-19 be amended to read:

    11-4-19. Appeals to the Board of Adjustment may be taken by any person aggrieved or by any officer, department, board, or bureau of the municipality affected by any decision of the administrative officer which is not a ministerial act or other preliminary act to bring an application or matter before the board for hearing and a final decision on the merits. Such appeal shall be taken within a reasonable time, as provided by the rules of such board, by filing with the officer from whom the appeal is taken and with the board of adjustment a notice of appeal specifying the grounds thereof. The officer from whom the appeal is taken shall forthwith transmit to the board all the papers constituting the record upon which the action appealed from was taken. All appeals relating to a particular action or property shall be consolidated and heard on an expedited basis.

    Section 8. That § 11-4-20 be amended to read:

    11-4-20. An appeal to the board of adjustment stays all proceedings in the action appealed from, except ministerial or other preliminary acts necessary to allow consolidated appeals on all matters prior to final decision by the board of adjustment, or unless the officer from whom the appeal is taken shall file a certificate that by reason of facts stated in the certificate a stay would in his opinion cause imminent peril to life or property. In such case proceedings shall not be stayed otherwise than by a restraining order which may be granted by the board of adjustment or by a court of record, on application, on notice to the officer from whom the appeal is taken and on due cause shown.

    Section 9. That § 11-4-25 be amended to read:

    11-4-25. Any person or persons, jointly or severally, aggrieved by any decision of the Board of Adjustment, or any taxpayer, or any officer, department, board, or bureau of the municipality, aggrieved by any decision of the board of adjustment may present to a court of record a petition duly verified, setting forth that such decision is illegal, in whole or in part, specifying the grounds of the illegality. Such petition shall be presented to the court within thirty days after the filing of the

decision in the office of the board.

     Signed March 16, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\072.wpd
CHAPTER 72

(HB 1100)

Minimum size for a sign about zoning changes
or conditional use permits.


        ENTITLED, An Act to set a minimum size for a sign about zoning changes or conditional use permits.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 11-4 be amended by adding a NEW SECTION to read:

    If a landowner petitions a governing board of a municipality for a change in the zoning applied to the landowner's land or petitions a board for a conditional use permit and a local ordinance requires the landowner to post a sign to notify the public about the petition and the hearing on the petition, the sign must be at least twenty-four inches wide and eighteen inches tall with bold lettering to inform the public about the petition and hearing. This section does not preempt any requirement provided in any state law or municipal or county ordinance.

    Section 2. That chapter 11-6 be amended by adding a NEW SECTION to read:

    If a landowner petitions the commission for a change in the zoning applied to the landowner's land or petitions a board for a conditional use permit and a local ordinance requires the landowner to post a sign to notify the public about the petition and the hearing on the petition, the sign must be at least twenty-four inches wide and eighteen inches tall with bold lettering to inform the public about the petition and hearing. This section does not preempt any requirement provided in any state law or municipal or county ordinance.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\073.wpd
CHAPTER 73

(HB 1101)

Municipalities may create programs
to encourage housing development.


        ENTITLED, An Act to authorize municipalities to create programs to encourage housing development.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:


    Any municipality may rebate the municipal property taxes paid on housing that furthers the municipality's housing goals. Any such municipality shall, by ordinance, develop a program that provides for the type of housing that qualifies for the rebate, the length of time the rebate may apply, and the criteria the housing shall meet in order to qualify for the rebate.

     Signed February 18, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\074.wpd
CHAPTER 74

(SB 112)

Tax increment district's base revised.


        ENTITLED, An Act to revise certain provisions concerning tax increment districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 11-9-23 be amended to read:

    11-9-23. If the municipality adopts an amendment to the original project plan for any district, which includes additional project costs for which tax increments may be received by the municipality, the tax incremental base for the district shall be redetermined pursuant to § 11-9-20. The tax incremental base as redetermined under this section is effective for the purposes of this chapter only if it exceeds the original tax incremental base determined under § 11-9-20. The provisions of this section do not apply if the additional project costs are thirty-five percent or less than the amount approved in the original project plan and the additional project costs will be incurred before the expiration of the period specified in § 11-9-13.

     Signed March 16, 2016
_______________
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ELECTIONS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\075.wpd
CHAPTER 75

(HB 1033)

Election and election petition requirements revised.


        ENTITLED, An Act to revise certain provisions concerning elections and election petitions and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 12-1-3 be amended to read:

    12-1-3. Terms used in this title mean:


            (1)    "Candidate," a person whose name is on the ballot or who is entitled to be on the ballot to be voted upon for nomination or election at any election;

            (2)    "Election," any election held under the laws of this state;

            (3)    "Election officials," state and local officials charged with the duty of conducting elections and the canvass of returns;

            (4)    "Elector," a person qualified to register as a voter, whether or not the person is registered;

            (4A)    "Electronic pollbook," an electronic system containing both the registration list and pollbook;

            (5)    "General election," the vote required to be taken in each voting precinct of the state on the first Tuesday after the first Monday in November of each even-numbered year;

            (6)    "Party office," an office of a political party organization as distinct from a public office;

            (7)    "Person in charge of an election," or "person charged with the conduct of an election," the county auditor in all cases except local elections for a municipality, school district, township, or other political subdivision, in which case it is the officer having the position comparable to the auditor in that unit of government if not specifically designated by law;

            (8)    "Petition," a form prescribed by the State Board of Elections, which contains the question or candidacy being petitioned, the declaration of candidacy if required and the verification of the circulator. If multiple sheets of paper are necessary to obtain the required number of signatures, each sheet shall be self-contained and separately verified by the circulator;

            (9)    "Petition circulator," a resident of the State of South Dakota who is at least eighteen years of age who circulates nominating petitions or other petitions for the purpose of placing candidates or issues on any election ballot;

            (10)    "Political party," a party whose candidate for Governor at the last preceding general election at which a Governor was elected received at least two and one-half percent of the total votes cast for Governor;

            (10A)    "Pollbook" or "poll list," a list containing in numerical order the names of all persons voting at the election and type of ballot voted;

            (10B)    "Polling place," a designated place voters may go to vote;

            (11)    "Primary" or "primary election," an election held at which candidates are nominated for public office;

            (12)    "Public office," an elected position in government;

            (12A)    "Registration list," a list of eligible voters;

            (13)    "Registered mail," does not include certified mail;

            (14)    "Registration officials," the county auditor and deputies and other persons authorized to assist in registration pursuant to chapter 12-4;

            (14A)    "Vote center," a polling place when the precinct has been defined as the entire jurisdiction and an electronic pollbook is utilized;

            (15)    "Voter," a person duly registered to vote or one who is performing the act of voting;

            (16)    "Independent (IND)" or "no party affiliation (NPA)," any voter who writes independent, I, Ind, the field is blank, no party affiliation, no party, no choice, nonpartisan, or line crossed off in the choice of party field on the voter registration form;

            (17)    "Independent candidate," notwithstanding the definition of independent as stated in this chapter, any registered voter regardless of party affiliation who declares to be an independent candidate for public office pursuant to this chapter;

            (18)    "Other," any voter who writes a political party not recognized in South Dakota in the choice of party field on the voter registration form.

    Section 2. That § 12-1-13 be amended to read:

    12-1-13. Within five business days after a nominating, initiative, or referendum petition is filed with the person in charge of the election, any interested person who has researched the signatures contained on the petition may file an affidavit stating that the petition contains deficiencies as to the number of signatures from persons who are eligible to sign the petition. The affidavit shall include an itemized listing of the specific deficiencies in question. Any challenge to the certification or rejection of a nominating petition for a primary election made in shall be to the circuit court shall be commenced no later than the third Tuesday in March. This action takes precedence over other cases in circuit court. Any party appealing the circuit court order to the Supreme Court shall file a notice of appeal within ten days of the date of the notice of the entry of the circuit court order. Any statewide initiated measure or referendum petition may be challenged by any person pursuant to this section by submitting an affidavit as set forth above within thirty days after the petition is filed with the person in charge of the election.

    Section 3. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\076.wpd
CHAPTER 76

(HB 1087)

A public election notice repealed.


        ENTITLED, An Act to repeal the requirement of a certain public election notice.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 12-2-7 be repealed.

     Signed February 23, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\077.wpd
CHAPTER 77

(HB 1035)

Voter registration, vote centers, and elections revisions.


        ENTITLED, An Act to revise and repeal certain provisions concerning voter registration, vote centers, and conducting elections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 12-4-4.11 be repealed.

    Section 2. That § 12-14-17 be amended to read:

    12-14-17. Notwithstanding any other provision of law, any jurisdiction may conduct an election using vote centers pursuant to the provisions of this section. The election shall be conducted in conformance with all applicable election laws and rules with the following exceptions:

            (1)    The jurisdiction may use vote centers that allow the voters in the jurisdiction to vote at any one of the vote centers in lieu of establishing precincts and wards for the election;

            (2)    Any person who is registered to vote and living in the jurisdiction may be appointed as a polling place superintendent or deputy to any of the vote centers;

            (3)    Secure, encrypted electronic pollbooks shall be used in lieu of paper registration books; and

            (4)    The secretary of state shall prescribe the form of the ballot to be used at vote centers until the State Board of Elections promulgates rules pursuant to subdivision 12-1-9(2);

            (5)    The entire jurisdiction is designated as one voting precinct for this election; and

            (6)    The jurisdiction shall submit a plan for approval to the secretary of state. The Board of Elections shall promulgate rules pursuant to chapter 1-26 concerning the plan by July 1, 2013.

    Section 3. That § 12-18-41 be repealed.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\078.wpd
CHAPTER 78

(HB 1036)

Campaign finance requirements improved.


        ENTITLED, An Act to revise certain provisions concerning campaign finance requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 12-27-6 be amended to read:

    12-27-6. The statement of organization shall include:

            (1)    The name, street address, postal address, and daytime telephone number of the committee;

            (2)    The name, street address, postal address, and daytime telephone number of the chair and the treasurer of the committee;

            (3)    A statement of the type of political committee that has been or is being organized;

            (4)    In the case of a candidate campaign committee, the committee name, street address, and name and postal address of the candidate; and

            (5)    In the case of a political action committee or ballot question committee, a concise statement of its purpose and goals, and the full name, street address, and postal address of the organization with which the committee is connected or affiliated, or if the committee is not connected or affiliated with any one organization, the trade, profession, or primary interest of the committee;

            (6)    If the committee is organized as a corporation under federal or state laws for liability purposes only as authorized by § 12-27-4, a statement affirming such organization; and

            (7)    The name, street address, postal address, and telephone number of each financial institution where an account or depository is maintained.

    The statement shall be signed by the candidate and treasurer for a candidate campaign committee and by the chair and treasurer for other political committees or filed electronically pursuant to § 12-27-41. A political committee continues to exist until a termination statement is filed pursuant to §§ 12-27-25 and 12-27-26.

    The treasurer of a political committee shall file an updated statement of organization not later than fifteen days after any change in the information contained on the most recently filed statement of organization.

    Any correspondence regarding reporting deadlines, delinquent reports, administrative penalties, and administrative hearings may only be sent to the treasurer listed on the most current statement of organization on file.

    Section 2. That § 12-27-22 be amended to read:

    12-27-22. A campaign finance disclosure statement shall be submitted to the secretary of state by the treasurer of every each:

            (1)    Candidate or candidate campaign committee for any statewide or legislative office;

            (2)    Political action committee;

            (3)    Political Statewide, county, local, or auxiliary committee of any political party;

            (4)    Ballot Statewide ballot question committee; and

            (5)    Candidate or candidate committee for any statewide or legislative office whose name appears on the primary ballot, but does not appear on the general election ballot, shall submit a campaign finance disclosure statement, or termination report, which shall be received by the secretary of state by 5:00 p.m. on the second Friday of August following

that primary election; and

            (6)    Statewide ballot question committee that does not meet the signature requirements for placement of the ballot issue on the general election ballot, shall submit a termination report to the secretary of state by 5:00 p.m. on the first Monday in February following the year the statement of organization was submitted to the secretary of state.

    The statement shall be signed and submitted by the treasurer of the political committee or political party. The statement shall be received by the secretary of state and submitted by 5:00 p.m. on the first Monday of February and shall cover the contributions and expenditures for the preceding calendar year. The statement shall also be received by the secretary of state and submitted by 5:00 p.m. on the second Friday prior to each primary and general election complete through the fifteenth day prior to that election. Each statewide ballot question committee shall submit a termination report by 5:00 p.m. no later than the first Monday in February following the year the ballot question was on the ballot. Any statement submitted pursuant to this section shall be consecutive and shall cover contributions and expenditures since the last statement submitted.

    The following are not required to submit a campaign finance disclosure statement:

            (1)    A candidate campaign committee for legislative or county office on February first following a year in which there is not an election for the office;

            (2)    A county, local, or auxiliary committee of any political party, qualified to participate in a primary or general election, prior to a statewide primary election;

            (3)    A legislative or county candidate campaign committee without opposition in a primary election, prior to a primary election;

            (4)    A candidate campaign committee whose name is not on the general election ballot, prior to the general election;

            (5)    A political committee that regularly submits a campaign finance disclosure statement with another state or the Federal Election Commission or a report of contributions and expenditures with the Internal Revenue Service;

            (6)    A statewide candidate who is publicly seeking a nomination by that candidate's party convention prior to a primary election; and

            (7)    An independent statewide candidate prior to a primary election.

    A violation of this section is a Class 1 misdemeanor.

    Section 3. That chapter 12-27 be amended by adding a NEW SECTION to read:

    No campaign finance disclosure statement is required to be submitted under the following circumstances:

            (1)    A year-end report for a candidate campaign committee for legislative or county office on the first Monday in February following a year in which there is not an election for the office;

            (2)    A county, local, or auxiliary committee of any political party, qualified to participate in a primary or general election, prior to a statewide primary election;

            (3)    A legislative or county candidate campaign committee without opposition in a primary election, prior to a primary election;

            (4)    A candidate campaign committee whose name is not on the general election ballot, prior to the general election;

            (5)    A political committee that regularly submits a campaign finance disclosure statement with another state or the Federal Election Commission or a report of contributions and expenditures with the Internal Revenue Service;

            (6)    A statewide candidate who is publicly seeking a nomination by that candidate's party convention prior to a primary election; and

            (7)    An independent statewide candidate prior to a primary election.

    Section 4. That § 12-27-24 be amended to read:

    12-27-24. A campaign finance disclosure statement shall include the following information:

            (1)    Political committee or political party name, street address, postal address, city, state, zip code, daytime and evening telephone number, and e-mail address;

            (2)    Type of campaign statement (pre-primary, pre-general, mid-year post-primary nonwinner, year-end, amendment, supplement, or termination);

            (3)    If a ballot question committee, the ballot question number and whether the committee is for or against the measure;

            (4)    The balance of cash and cash equivalents on hand at the beginning of the reporting period;

            (5)    The total amount of all contributions received during the reporting period;

            (6)    The total amount of all in-kind contributions received during the reporting period;

            (7)    The total of refunds, rebates, interest, or other income not previously identified during the reporting period;

            (8)    The total of contributions, loans, and other receipts during the reporting period;

            (9)    The total value of loans made to any person, political committee, or political party during the reporting period;

            (10)    The total of expenditures made during the reporting period;

            (11)    The total amount of all expenditures incurred but not yet paid. An expenditure incurred but not yet paid shall be reported on each report filed after the date of receipt of goods or services until payment is made to the vendor. A payment shall be listed as an expenditure when the payment is made;

            (12)    The statement shall state the cash balance on hand as of the close of the reporting period;

            (13)    The total amount of contributions of one hundred dollars or less in the aggregate from one source received during the reporting period;

            (14)    The name, residence address, city, and state of each person contributing a contribution of more than one hundred dollars in the aggregate during the reporting period and the amount of the contribution. Any contribution from any political committee or political party shall be itemized. Any contribution from a federal political committee or political committee organized outside this state shall also include the name and internet website

address of the filing office where campaign finance disclosure statements are regularly filed for the committee. If all of the information required is not on file, the political committee or political party may not deposit the contribution;

            (15)    The statement shall contain the same information for in-kind contributions as for monetary contributions, and shall also include a description of the in-kind contribution;

            (16)    Upon the request of the treasurer, a person making an in-kind contribution shall provide all necessary information to the treasurer, including the value of the contribution;

            (17)    Any monetary or in-kind contribution made by the reporting political committee or political party to any political committee, political party, or nonprofit charitable organization shall be itemized;

            (18)    A categorical description and the amount of the refunds, rebates, interest, sale of property, or other receipts not previously identified during the reporting period;

            (19)    A categorical description and the amount of funds or donations by any organization to its political committee for establishing and administering the political committee and for any solicitation costs of the political committee;

            (20)    The total balance of loans owed by the political committee or political party;

            (21)    The balance of loans owed by the political committee or political party, itemized by lender's name, street address, city, and state, including the terms, interest rate, and repayment schedule of each loan;

            (22)    The total balance of loans owed to the political committee or political party;

            (23)    The amount of each loan made during the reporting period. The name, street address, city, and state of the recipient of the loan;

            (24)    The balance of each loan owed to the political committee or political party, itemized by name, street address, city, and state;

            (25)    The expenditures made during the reporting period shall be categorized. Disbursements to consultants, advertising agencies, credit card companies, and similar firms shall be itemized into expense categories. Any contribution made by the reporting political committee or political party that is not in exchange for any item of value or service shall be itemized;

            (26)    The expenditures incurred but not yet paid during the reporting period and to whom the expenditure is owed;

            (27)    The amount of each independent expenditure, as defined in this chapter, made during the reporting period, the name of the candidate, public office holder, or ballot question related to the expenditure and a description of the expenditure;

            (28)    The information contained in any statement provided under § 12-27-19; and

            (29)    The statement shall include a A certification that the contents of the statement is true and correct signed by the treasurer of the political committee or political party.

    Section 5. That § 12-27-29.2 be amended to read:

    12-27-29.2. Any administrative penalty imposed pursuant to § 12-27-29.1 shall be assessed

against the violator by an administrative order of the secretary of state. The order shall state the date and facts of each violation addressed under the penalty assessed and the citations to the provisions of each law alleged to be violated. The order shall contain a statement that the violator may request a contested case hearing on the violation and penalty pursuant to chapter 1-26, by filing a written request with the secretary of state no later than twenty days after the receipt of the order. The secretary of state shall serve the order and assessment by certified mail. If not contested within twenty days of receipt of the order, an administrative order assessing an administrative penalty constitutes a judgment and may be executed by delivery of a true and correct copy certified by the secretary of state in the manner provided for the execution of money judgments provided in chapter 15-18.

    If a hearing is requested, the matter shall be scheduled for a hearing before the secretary of state within thirty days from the receipt of the request. The secretary of state shall provide notice of the hearing consistent with the provisions of § 1-26-17. A final determination by the secretary of state may be appealed to the circuit court or Supreme Court as provided in chapter 1-26.

    If the time to take an appeal has lapsed after the final determination by the secretary of state, the administrative order assessing an administrative penalty constitutes a judgment and may be executed by delivery of a true and correct copy certified by the secretary of state in the manner provided for the execution of judgments in chapter 15-18.

    If a committee incurs the maximum penalty fee, does not submit the delinquent report, and a judgment is executed, the secretary of state may terminate that committee. If a committee is terminated, the secretary of state shall mail a termination letter to the last address on record for the treasurer.

    Section 6. That § 12-27-42 be amended to read:

    12-27-42. Any statement, form, or filing required by this chapter shall be filed with the secretary of state in the case of a statewide office or legislative office election. Any statement, form, or filing required by this chapter shall be filed with the county auditor in the case of a county office election, with the municipal finance officer or clerk in the case of a municipal ballot question election, with the school business manager in the case of a school district office election, or with the person in charge of the election in the case of other political subdivisions or special purpose districts. However, any county, municipality, school district, or other political subdivision may, by resolution, direct that any statement, form, or filing required by this chapter be electronically filed with the secretary of state, rather than being filed with the county, municipality, school district, or other political subdivision.

     Signed February 12, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\078.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\079.wpd
CHAPTER 79

(HB 1099)

Campaign finance provisions revised.


        ENTITLED, An Act to revise certain campaign finance provisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 12-27-39 be amended to read:


    12-27-39. The provisions of this chapter apply to each statewide office, legislative office, statewide ballot question, county offices and ballot questions in counties with population greater than five thousand according to the most recent Federal census, ballot questions in first class municipalities, and school district offices and ballot questions in school districts with more than two thousand average daily membership. Any municipal or school district election covered by this chapter shall conform to the contribution limits applicable to legislative offices. This chapter does not apply to the unified judicial system, nor does this chapter apply to any township or special purpose district offices or ballot questions or elections for municipal offices. However, the governing body of any county, township, municipality, school district, or special purpose district not otherwise covered by this chapter may adopt an ordinance or resolution to make the provisions of this chapter, with or without amendments, applicable to county, township, municipal, school district, or special purpose district elections.

     Signed March 14, 2016
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EDUCATION

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CHAPTER 80

(SB 133)

Shared services between school districts.


        ENTITLED, An Act to revise certain provisions regarding shared services provided by the state to school districts, the sharing of services of school district employees, the classroom innovation grant program, and educator mentoring and certification reciprocity.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-1-23 be amended to read:

    13-1-23. The secretary of education shall accept and distribute in accord with law and in a fair and equitable manner any commodities, moneys, goods, and services which may be made available from the state or federal government or from other sources. The goods and services may include items the state negotiates for centrally and provides to any school district on a voluntary basis at no cost or reduced cost. The secretary may also contract with any school district or other entity to provide services to school districts throughout the state.

    Section 2. That chapter 13-15 be amended by adding a NEW SECTION to read:

    There is hereby established in the Department of Education a shared employee services grant program. The purpose of the grant program is to provide an incentive for school districts to share an employee pursuant to § 13-15-1.1. The South Dakota Board of Education shall promulgate rules, pursuant to chapter 1-26, regarding the application process and timelines, the guidelines and criteria for eligibility and approval of applications, and the distribution of funds from the shared employee services grant program, not to exceed the amount appropriated by the Legislature for this program.

    Section 3. That § 13-14-15 be amended to read:

    13-14-15. There is hereby established in the Department of Education a classroom innovation

grant program. The purpose of the grant program is to provide funding for classroom innovation to allow classroom teachers to utilize technology in creative and innovative ways to enhance the learning and achievement of their students. Applications for the innovation grants may be submitted by individual teachers, school districts, or education service agencies established pursuant to § 13-3-76 developing teacher training and classroom access to virtual education and customized learning tools and to expand course offerings, enhance recruitment, and increase retention of qualified instructors and facilitators through the Center for Statewide E-learning at Northern State University.

    Section 4. That § 13-42-3 be amended to read:

    13-42-3. The South Dakota Board of Education shall promulgate rules, pursuant to chapter 1-26, establishing to establish the requirements and criteria that an applicant shall meet in order to be issued a certificate by the secretary as a teacher, administrator, or other educational professional authorizing the holder of the certificate to accept a position in any elementary or secondary school in the grades and fields specified by the certificate. The rules shall specify the duration and the method of renewal or reinstatement, the amount of the fee for issuing the certificate, the application procedures and documentation requirements for certificates, the endorsements to certificates, the requirements for certification, the procedures for denial or nonrenewal of a certificate and disciplinary proceedings and assessment of costs, the procedures for processing applications and issuing certificates for military spouses, the procedures for granting reciprocity for any teacher who is certified to teach in another state and has completed an accredited teacher education program, and other procedures necessary for the administration of certification.

    In addition to teacher certificate renewal based on academic coursework, the rules for teacher certificate renewal shall include guidelines and criteria by which an applicant may receive credit toward renewal based on private or public sector experience that was not obtained through academic coursework if the experience is related to the applicant's teaching field. Any change to a rule promulgated pursuant to this section which increases the educational requirements that an applicant shall meet to qualify for a certificate shall be preceded by at least two years' notice before the effective date of the change. The two-year notice requirement does not apply to an increase in the application fee, which increase shall comply with §§ 1-26-4.8 and 1-26-6.9.

    Section 5. That § 13-43-55.1 be amended to read:

    13-43-55.1. There is hereby created a program to provide for mentor teachers in South Dakota school districts which elect to participate the mentoring of teachers new to the profession in South Dakota school districts. The program shall provide a new teacher access to a mentor teacher for a period of two years and participation in a summer workshop program following the first year of employment. The South Dakota Board of Education shall promulgate rules, pursuant to chapter 1-26, to establish duties and qualifications for teachers to be designated as mentor teachers. Participation in the program is discretionary with each school district according to a mentor teacher plan adopted by the school board for the school district.

     Signed March 11, 2016
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CHAPTER 81

(HB 1189)

Inspection and review
of a state-mandated academic achievement test.


        ENTITLED, An Act to provide for the inspection and review of a state-mandated academic achievement test taken by a student.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 13-3 be amended by adding a NEW SECTION to read:

    The parent of a student to whom an assessment is administered pursuant to § 13-3-55 or the eligible student may request to inspect and review the assessment of the student after it is scored and the results are provided to the parent or eligible student. The parent or eligible student shall be provided with access to the assessment in a secured environment within a reasonable period of time, but not more than forty-five days after the request is received. The department, through its website, shall provide parents and school districts with information regarding the process and procedures for the inspection and review authorized in this section.

    For the purposes of this section, the term, parent, and the term, eligible student, are as defined in 34 C.F.R. § 99.3, as of January 1, 2016.

     Signed March 10, 2016
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CHAPTER 82

(SB 5)

Minor school district boundary changes restricted.


        ENTITLED, An Act to revise the procedure to initiate a school district boundary change.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-6-18.1 be amended to read:

    13-6-18.1. If a plan of reorganization has been is approved pursuant to § 13-6-18, a boundary change pursuant to § 13-6-84.2 or 13-6-85 may be allowed by a school board only if:

            (1)    The plan has been rejected by the voters;

            (2)    The school boards of each district which voted and approved the reorganization plan concur by majority vote and the minor boundary change is recognized in the plan; or

            (3)    The plan is operative pursuant to § 13-6-61.

    Section 2. That § 13-6-84 be amended to read:

    13-6-84. The school board of a school district may approve or disapprove proposed propose to change the boundary changes of the school district and exchange land with another school district under conditions criteria described in §§ 13-6-84.1 to 13-6-84.3, inclusive, 13-6-85, and 13-6-86.

    Section 3. That § 13-6-84.1 be amended to read:

    13-6-84.1. In all each proposed changes change in a school district boundaries, the following conditions shall prevail:

            (1)    The district's boundary or land exchange, the boundary of the area proposed to be transferred shall be coterminous at some point detached, annexed, or exchanged must

have a common boundary with the common boundary of the two involved school districts. Land owned by the federal, state, or local governments and unoccupied land may be included in the request;

            (2)    Children must reside within the boundary of the area to be transferred, unless it is an area change initiated by a school board as provided in § 13-6-84.2 proposal.

    Section 4. That § 13-6-84.2 be amended to read:

    13-6-84.2. A boundary change between school districts may be initiated by a resolution of intent to make a boundary change by the school board of a district. The initiating board shall, within five days of passage of the resolution of intent, forward a copy of the resolution to all affected districts. The school boards of the affected districts shall act upon the resolution of intent during their next meeting. Within thirty days of the passage of the resolution of intent by each district a public hearing shall be held by the boards of each district. Within thirty days of the public hearing, and if no petition for election has been filed pursuant to § 13-6-84.3, the school boards of each district shall meet and take final action on the resolution of intent. If the resolutions of all districts favor a boundary change, the resolutions shall be forwarded to the county commissioners having jurisdiction over the school districts affected. The county commissioners shall act pursuant to § 13-6-87. Nothing in this Act compels a school board to act if the school board is unwilling to exchange any land within its boundary. The exchange of land between each school district may only be made if each school board is willing to exchange the land. If a school district is willing to detach, annex, or exchange land, the involved school district shall adopt a resolution of intent to exchange land with the other school district. The resolution of intent shall contain the following:

            (1)    The name of each school district involved and a legal description of the land in each school district proposed to be exchanged through the detachment and annexation of land by each school district;

            (2)    A map of the area proposed to be detached and annexed by each involved school district;

            (3)    A statement certified by the county auditor setting forth the amount of the assessed valuation of the area to be detached and annexed, the total assessed valuation of the school district from which the area is proposed to be detached and the school district to which the area is proposed to be annexed, and the amount of any bonded indebtedness or judgments against each school district; and

            (4)    A statement that the school district will request an appraisal to be completed by a certified appraiser that shows the fair market value of the land proposed to be detached and annexed by each of the involved school districts. Each of the involved school districts shall approve the certified appraiser completing the appraisal, and shall pay one-half of the cost of the appraisal. If a school district does not agree with an appraisal, the school district may, within thirty days of the receipt of the appraisal and at its own expense, order another appraisal from a different certified appraiser.

    The school board of each involved school district shall, within five days of the passage of the resolution of intent, forward a copy of the resolution to the other school district and to the Department of Education. The school board of each involved school district shall acknowledge receipt of the resolution of intent at its next school board meeting, and representatives from both of the involved school districts shall meet and mutually agree on a certified appraiser to complete the appraisal.

    A school board may object to the appraisal within forty-five days of acknowledging the receipt of the appraisal. Unless a school board objects, the school board of each involved school district shall, within sixty days of acknowledging the receipt of the appraisal, schedule a public hearing to consider the proposed land exchange. Following the public hearing, the school board of each

involved school district shall either approve or reject the land exchange. Notwithstanding any other provision in law, a decision by a school board to reject the land exchange does not create any cause of legal action against the school district or school board, or constitute grounds for an appeal pursuant to § 13-46-1. If the action of each of the involved school districts approves a land exchange and no petition for an election is filed pursuant to § 13-6-84.3, the resolutions approving the land exchange shall be forwarded to the county commissioners having jurisdiction over the involved school districts. The county commissioners shall act pursuant to § 13-6-87.

    Section 5. That § 13-6-85 be repealed.

    Section 6. That § 13-6-85.1 be repealed.

    Section 7. That § 13-6-86 be amended to read:

    13-6-86. The petitions and resolutions A resolution for a proposed boundary change shall contain, but not be limited to, includes the following information based on the final plan for detachment and annexation:

            (1)    The names of the school districts involved and a correct the legal description of the area proposed for detachment and annexation;

            (2)    A map of the area proposed for detachment and annexation, including a portion or all of the district from which such the area is to be detached and the district to which such the area is to be annexed;

            (3)    A statement certified by the county auditor setting forth the amount of the assessed valuation of the area to be transferred detached, the amount of the assessed valuation of the area to be annexed, the total assessed valuation of the school district from which the area is proposed to be removed detached, and the amount of any bonded indebtedness or judgments against the school district;

            (4)    An appraisal completed by a certified appraiser that shows the fair market value of the land proposed to be detached and annexed. The appraisal shall be completed by a certified appraiser approved by the school board of each involved school district, and each involved school district shall pay one-half of the cost of the appraisal. If an involved school district does not agree with the appraisal, the school district may, within thirty days of receipt of the appraisal and at its own expense, request another appraisal from a different certified appraiser. The appraisal shall include the potential fair market value of the land to be detached and annexed as if the land was fully developed as determined by consideration of the current zoning, the nearest municipality's proposed zoning for the next ten years, and the nearest municipality's comprehensive plan; and

            (5)    The ownership interests in the land.

    Section 8. That § 13-6-86.1 be repealed.

    Section 9. That § 13-6-89 be repealed.

    Section 10. That chapter 13-6 be amended by adding a NEW SECTION to read:

    Nothing in §§ 13-6-84, 13-6-84.1, and 13-6-84.2 affects a school district's authority to reorganize pursuant to §§ 13-6-10, 13-6-13, and 13-6-18.

    Section 11. That chapter 13-6 be amended by adding a NEW SECTION to read:

    If a school district proposes to close a rural attendance center, any landowner who has students

attending the attendance center that is proposed to be closed may petition the school board to transfer their land to an adjacent school district with a common boundary with the landowner. Notwithstanding any other provision of law, a decision by a school board to reject the petition, in total or in part, does not create a cause of action against the school district or school board, or constitute grounds for an appeal pursuant to § 13-46-1. For the purposes of this chapter, a rural attendance center is an attendance center that is at least ten miles from the corporate limits of any incorporated municipality.

    Section 12. That § 13-6-13 be amended to read:

    13-6-13. The plan shall contain:

            (1)    A map or maps showing the boundaries of the proposed district or districts, the boundaries of the existing districts involved, the location of existing and proposed attendance centers and a description of the facilities, and the proposed school bus routes, if any;

            (2)    A legal description of the boundaries of the proposed district or districts;

            (3)    Estimates of the school age population within the proposed district or districts;

            (4)    The assessed valuation of all taxable property of each existing district and of the proposed district or districts;

            (5)    Outstanding general obligation bonds of any component district, funds in all school accounts and estimated receipts in all accounts in process of collection;

            (6)    If a joint district, the designation of the county of jurisdiction;

            (7)    The official name of the proposed district;

            (8)    A statement with regard to a proposed method of adjustment of assets and liabilities;

            (9)    The proposed number of school board members if a new entity is to be created;

            (10)    A description of the proposed educational program;

            (11)    A reasonably detailed budget showing estimated annual receipts and expenditures for the operation of the proposed district or districts;

            (12)    A statement recognizing any requests for minor boundary changes process for a landowner to request their land be transferred to another school district when their land is adjacent to a school district other than a school district involved in the reorganization;

            (13)    Such additional information as may be necessary to show compliance with the standards for school districts as adopted by the South Dakota Board of Education.

    If the plan proposes the dissolution and annexation of a school district to one or more school districts, the school board of the receiving district, or districts, shall by resolution express their acceptance or rejection of all or part of the district to be dissolved as set forth in the proposed plan.

    If the school boards of two or more school districts are developing a plan to consolidate, and two-thirds of the members of each affected school board agree, the plan may also include the provisions of an excess tax levy authorized in § 10-12-43 if an excess tax levy currently exists in one or more of the school districts. If the plan is approved by the voters, the proposed excess tax levy may be applied in the new consolidated school district. If a proposed excess tax levy is included in

the plan, the plan shall state the amount of the proposed excess tax levy. The proposed excess tax levy may be applied for taxes payable in any of the five years following the date of reorganization. In addition, each school board involved in the development of the plan shall announce the inclusion of the proposed excess tax levy in the plan to the taxpayers in the manner set forth in § 10-12-43.

    Section 13. That chapter 13-6 be amended by adding a NEW SECTION to read:

    Notwithstanding any other provision of law, a decision by a school board to reject the request to transfer land submitted pursuant to subdivision 13-6-13(12), in total or in part, does not create any cause of action against the school district or school board, or constitute grounds for an appeal pursuant to § 13-46-1.

     Signed March 11, 2016
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CHAPTER 83

(SB 131)

Teacher salary and a target teacher ratio, education funding,
and the School Finance Accountability Board,


        ENTITLED, An Act to establish a target teacher salary and a target teacher ratio, to revise certain provisions regarding education funding, to create the School Finance Accountability Board, and to provide for certain school district reporting and penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-10-6 be repealed.

    Section 2. Section 1 of this Act is effective on January 1, 2017.

    Section 3. That § 13-11-3 be amended to read:

    13-11-3. The school district shall report the amount budgeted to the county auditor before October first on forms prescribed by the county auditor. The county auditor shall spread a levy in dollars and cents over the taxable property of the school district sufficient to raise the money requested by the school district subject to the legal dollars and cents limitations on any of the funds as provided by law. For the general fund, and special education fund, capital outlay fund, and pension fund, the school district may report the levy in dollars or dollars per one thousand dollars of taxable valuation.

    Section 4. That § 13-13-10.1 be amended to read:

    13-13-10.1. Terms used in this chapter mean The education funding terms and procedures referenced in this chapter are defined as follows:

            (1)    "Average daily membership," the average number of resident and nonresident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year, minus average number of pupils for whom the district receives tuition, except pupils described in subdivision (1A) and pupils for whom tuition is being paid pursuant to § 13-28-42.1 and plus the average number of pupils for whom the district pays tuition;

            (1A)    Nonresident students who are in the care and custody of the Department of Social Services, the Unified Judicial System, the Department of Corrections, or other state agencies and are attending a public school may be included in the average daily membership fall enrollment of the receiving district when enrolled in the receiving district. When counting a student who meets these criteria in its general enrollment average daily membership, the receiving district may begin the enrollment on the first day of attendance. The district of residence prior to the custodial transfer may not include students who meet these criteria in its general enrollment average daily membership after the student ceases to attend school in the resident district;

            (2)    "Adjusted average daily membership," calculated as follows:

            (a)    For districts with an average daily membership of two hundred or less, multiply 1.2 times the average daily membership;

            (b)    For districts with an average daily membership of less than six hundred, but greater than two hundred, raise the average daily membership to the 0.8293 power and multiply the result times 2.98;

            (c)    For districts with an average daily membership of six hundred or more, multiply 1.0 times their average daily membership;

            (2A)    "Fall enrollment," the number of kindergarten through twelfth grade students enrolled in all schools operated by the school district on the last Friday of September of the current school year minus the number of students for whom the district receives tuition, except nonresident students who are in the care and custody of a state agency and are attending a public school and students for whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students for whom the district pays tuition. When computing state aid to education for a school district pursuant to § 13-13-73, the secretary of the Department of Education shall use either the school district's fall enrollment or the average of the school district's fall enrollment from the previous two years, whichever is higher;

            (2B)    Repealed by SL 2010, ch 84, § 1.

            (2C)    "Small school adjustment," calculated as follows:

            (a)    For districts with a fall enrollment of two hundred or less, multiply 0.2 times $4,237.72;

            (b)    For districts with a fall enrollment of greater than two hundred, but less than six hundred, multiply the fall enrollment times negative 0.0005; add 0.3 to that result; and multiply the sum obtained times $4,237.72;

                The determination of the small school adjustment for a school district may not include any students residing in a residential treatment facility when the education program is operated by the school district "Target teacher ratio factor," is:

            (a)    For school districts with a fall enrollment of two hundred or less, the target teacher ratio factor is 12;

            (b)    For districts with a fall enrollment of greater than two hundred, but less than six hundred, the target teacher ratio factor is calculated as follows:

            (1)    Multiplying the fall enrollment by .00750;

            (2)    Adding 10.50 to the product of subsection (b)(1);

            (c)    For districts with a fall enrollment of six hundred or greater, the target teacher ratio factor is 15.

                The fall enrollment used for the determination of the target teacher ratio for a school district may not include any students residing in a residential treatment facility when the education program is operated by the school district;

            (2D)    "Limited English proficiency (LEP) adjustment," is calculated as follows:

            (a)    Multiply by multiplying 0.25 times the per student allocation; and

            (b)    Multiply the product obtained in subsection (a) times the number of kindergarten through twelfth grade students who, in the prior school year, scored below level four on the state-administered language proficiency assessment as required in the state's consolidated state application pursuant to 20 USC § 6311(b)(7) as of January 1, 2013;

            (3)    "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;

            (4)    "Per student allocation," for school fiscal year 2016 is $4,876.76. Each school fiscal year thereafter, the per student allocation is the previous fiscal year's per student allocation increased by the index factor "Target teacher salary," for school fiscal year 2017 is $48,500. Each school fiscal year thereafter, the target teacher salary is the previous fiscal year's target teacher salary increased by the index factor;

            (4A)    "Target teacher benefits," is the target teacher salary multiplied by twenty-nine percent;

            (4B)    "Target teacher compensation," is the sum of the target teacher salary and the target teacher benefits;

            (4C)    "Overhead rate," is thirty-one percent.

                Beginning in school fiscal year 2018, the overhead rate shall be adjusted to take into account the sum of the amounts that districts exceed the other revenue base amount;

            (5)    "Local need," is the sum of calculated as follows:

            (a)    The per student allocation multiplied by the fall enrollment Divide the fall enrollment by the target teacher ratio factor;

            (b)    The small school adjustment, if applicable, multiplied by the fall enrollment; and If applicable, divide Limited English proficiency (LEP) adjustment pursuant to subdivision (2D) by the target teacher ratio factor;

            (c)    The limited English proficiency (LEP) adjustment, calculated pursuant to subdivision (2D), if applicable Add the results of subsections (a) and (b);

            (d)    Multiply the result of subsection (c) by the target teacher compensation;

            (e)    Multiply the product of subsection (d) by the overhead rate;

            (f)    Add the products of subsections (d) and (e);

            (g)    When calculating local need at the statewide level, include the amounts set aside for costs related to technology in schools and statewide student assessments; and

            (e)(h)    When calculating local need at the statewide level, include the amounts set aside for sparse school district benefits, calculated pursuant to §§ 13-13-78 and 13-13-79;

            (5A)    "Alternative per student need," is calculated as follows:

            (a)    Add the total need for each school district for school fiscal year 2016, including the small school adjustment and the limited English proficiency adjustment, to the lesser of the amount of funds apportioned to each school district in the year preceding the most recently completed school fiscal year or school fiscal year 2015 pursuant to §§ 13-13-4, 23A-27-25, 10-33-24, 10-36-10, 11-7-73, 10-35-21, and 10-43-77;

            (b)    Divide the result of (a) by the September 2015 fall enrollment, excluding any adjustments based on prior year student counts;

            (5B)    "Alternative local need," is the alternative per student need multiplied by the fall enrollment, excluding any adjustments based on prior year student counts;

            (6)    "Local effort," the amount of ad valorem taxes generated in a school fiscal year by applying the levies established pursuant to § 10-12-42. Beginning on July 1, 2017, local effort will include the amount of funds apportioned to each school district in the year preceding the most recently completed school fiscal year pursuant to §§ 10-33-24, 10-35-21 as provided by subdivision (6B), 10-36-10, 10-43-77, 11-7-73, 13-13-4, and 23A-27-25 and that exceeds the other revenue base amount.

                For the period July 1, 2016, through December 31, 2016, inclusive, local effort includes the amount of ad valorem taxes generated by applying the levies established pursuant to § 13-10-6 during this period;

            (6A)    "Other revenue base amount," for school districts not utilizing the alternative local need calculation is the amount of funds apportioned to each school district pursuant to §§ 10-33-24, 10-35-21 as provided by subdivision (6B), 10-36-10, 10-43-77, 11-7-73, 13-13-4, and 23A-27-25 calculated as follows:

            (a)    Beginning on July 1, 2017, equals the greatest of the amounts of the funds apportioned to each school district pursuant to §§ 10-33-24, 10-35-21 as provided by subdivision (6B), 10-36-10, 10-43-77, 11-7-73, 13-13-4, and 23A-27-25 for school fiscal years 2013, 2014, and 2015;

            (b)    Beginning on July 1, 2018, multiply eighty percent times subsection (a);

            (c)    Beginning on July 1, 2019, multiply sixty percent times subsection (a);

            (d)    Beginning on July 1, 2020, multiply forty percent times subsection (a);

            (e)    Beginning on July 1, 2021, multiply twenty percent times subsection (a);

            (f)    Beginning on July 1, 2022, is zero.

                For school districts utilizing the alternative local need calculation, the other revenue base amount is zero until such time the school district chooses to no longer utilize the alternative local need calculation. At that time, the other revenue base amount is

calculated as defined above.

                For a school district created or reorganized after July 1, 2016, the other revenue base amount is the sum of the other revenue base amount for each district before reorganization, and the new school district may not utilize the alternative local need calculation.

                In the case of the dissolution and annexation of a district, the other revenue base amount of the dissolved school district will be prorated based on the total number of students in the fall enrollment as defined in subdivision (2A) who attend each district to which area of the dissolved district were annexed to in the first year of reorganization. The amount apportioned for each district will be added to the annexed districts' other revenue base;

            (6B)    Wind energy tax revenue," any wind energy tax revenue apportioned to school districts pursuant to § 10-35-21 from a wind farm producing power for the first time before July 1, 2016, shall be considered local effort pursuant to subdivision (6) and other revenue base amount pursuant to subdivision (6A). However, any wind energy tax revenue apportioned to a school district from a wind farm producing power for the first time after June 30, 2016, one hundred percent shall be retained by the school district to which the tax revenue is apportioned for the first five years of producing power, eighty percent for the sixth year, sixty percent for the seventh year, forty percent for the eighth year, twenty percent for the ninth year, and zero percent thereafter;

            (7)    "General fund balance percentage," is a school district's general fund equity divided by the school district's total general fund expenditures for the previous school fiscal year, the quotient expressed as a percent;

            (8)    "General fund reserves," the sum of a school district's nonspendable and restricted fund balances of the general fund;

            (9)    "Nonspendable fund balance," that amount of the fund balance that is not in spendable form;

            (10)    "Restricted fund balance," that amount of the fund balance that has constraints on how it may be used that are externally imposed or are imposed by law "Per student equivalent," for funding calculations that are determined on a per student basis, the per student equivalent is calculated as follows:

            (a)    Multiply the target teacher compensation times the sum of one plus the overhead rate;

            (b)    Divide subsection (a) by 15;

            (8)    "Monthly cash balance," the total amount of money for each month in the school district's general fund, calculated by adding all deposits made during the month to the beginning cash balance and deducting all disbursements or payments made during the month;

            (9)    "General fund base percentage," is determined as follows:

            (a)    Forty percent for a school district with a fall enrollment as defined in subdivision (2A) of two hundred or less;

            (b)    Thirty percent for a school district with fall enrollment as defined in subdivision (2A) of more than two hundred but less than six hundred; and

            (c)    Twenty-five percent for a school district with fall enrollment as defined in

subdivision (2A) greater than or equal to six hundred.

                When determining the general fund base percentage, the secretary of the Department of Education shall use the lesser of the school district's fall enrollment as defined in subdivision (2A) for the current school year or the school district's fall enrollment from the previous two years;

            (10)    "Allowable general fund cash balance," the general fund base percentage multiplied by the district's general fund expenditures in the previous school year.

    Section 5. That § 13-13-10.4 be amended to read:

    13-13-10.4. For the purposes of subdivisions 13-13-10.1(1) and 13-13-10.1(1A), a pupil or § 13-13-10.1, a student is enrolled if:

            (1)    The pupil or student is less than twenty-one years of age on the first day of July or meets the requirements of § 13-28-5 and 13-28-6; and

            (2)    The pupil or student has not completed an approved program or graduated from high school; and

            (3)    The pupil's or student's parent or guardian resides within the school district, or in the case of an emancipated minor the pupil or student resides within the district or the pupil or student has been properly assigned to the district or has been approved to attend school in the district under the terms of the enrollment options program established in § 13-28-40; and

            (4)    The pupil or student is not simultaneously enrolled in any other school district and has not been excused from school attendance under the terms of § 13-27-1.1 or 13-27-2.

    Section 6. That § 13-13-10.5 be amended to read:

    13-13-10.5. For purposes of state aid to education, a student enrolled pursuant to § 13-28-41 or 13-28-51 shall be counted in a school's average daily membership fall enrollment as defined in subdivision 13-13-10.1(1) § 13-13-10.1 in a proportion equal to the share of the student's enrollment in the school.

    Section 7. That § 13-13-72 be amended to read:

    13-13-72. It is the policy of the Legislature that the appropriation for state aid to education increase on an annual basis by the percentage increase in local need on an aggregate statewide basis so that the relative proportion of local need paid by local effort and state aid shall remain constant. For school fiscal year 2013, it is the policy of the Legislature that the relative proportion of the total local need paid by state aid shall be amended by adjusting the proportion of state aid to fifty-three and eight-tenths percent of the total local need. However, the increase in the per student allocation on an annual basis that exceeds three percent shall be paid solely by the state and is not a factor in this policy. For school fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be adjusted annually to maintain the proportion between state aid and local property taxes and to reflect adjustments in local effort due to the implementation of the other revenue base amount as defined in § 13-13-10.1.

    Section 8. That § 13-13-72.1 be amended to read:

    13-13-72.1. Any adjustments in the levies specified in § 10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall be based on maintaining the relationship between statewide local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in which the

adjustment is made. For school fiscal years 2017 to 2022, inclusive, the proportion of local need paid by local effort and state aid shall be adjusted annually to reflect adjustments in local effort due to the implementation of the other revenue base amount as defined in § 13-13-10.1. However, for fiscal year 2013 and each year thereafter, if the levies specified in § 10-12-42 are not adjusted to maintain this relationship, the per student allocation target teacher salary as defined in § 13-13-10.1(4) 13-13-10.1 shall be reduced to maintain the relationship between statewide local effort as a percentage of statewide local need. Any adjustment to the levy for agricultural property shall be based upon the change in the statewide agricultural taxable valuation and the reclassification of agricultural property to another property classification. Any adjustment to the levies for nonagricultural property and owner-occupied single-family dwellings shall be based upon the change in the statewide nonagricultural property and owner-occupied single-family dwellings taxable valuations. However, if any new project with a total taxable valuation of one hundred fifty million dollars or more is constructed, the levies shall be proportionately decreased for agricultural property, nonagricultural property, and owner-occupied single-family dwellings. In addition to the adjustments in the levies provided by this section, the levies for nonagricultural property and owner-occupied single-family dwellings shall also be adjusted as necessary to account for the additional increase in the total assessed value for nonagricultural property and owner-occupied single-family dwellings pursuant to the phasing out and repeal of the provisions provided in § 10-6-74.

    Section 9. That § 13-13-73 be amended to read:

    13-13-73. No later than July 1, 2016, a school district shall notify the secretary of education in writing as to whether the school district's state aid is to be calculated using the alternative local need calculation. If a school district chooses the alternative local need calculation, the school district shall notify the secretary in writing no later than July first of each subsequent fiscal year as to whether to continue to use the alternative local need calculation for that fiscal year. If a school district chooses not to use the alternative local need calculation, the school district may not use that calculation in any subsequent school year. The secretary of the Department of Education shall compute state aid to education for each school district according to the following calculations:

            (1)    Determine each school district's fall enrollment;

            (2)    To arrive at the local need per district:

            (a)    Multiply the per student allocation by the fall enrollment;

            (b)    Multiply the small school adjustment, if applicable, by the fall enrollment;

            (c)    Calculate the limited English proficiency (LEP) adjustment pursuant to subdivision (2D), if applicable; and

            (d)    Add the product of subsection (a) to the product of subsection (b) and to the calculation in subsection (c);

            (3)    State For school districts not utilizing the alternative local need calculation, state aid is (a) local need as defined in § 13-13-10.1 minus local effort, or (b) zero if the calculation in (a) is a negative number;

            (4)(2)    For school districts utilizing the alternative local need calculation, state aid is the alternative local need as defined in subdivision 13-13-10.1(5B) minus local effort, or zero if the calculation is a negative number;

            (3)    If the state aid appropriation for the general support of education is in excess of the entitlement provided for in this section and the entitlement provided for in § 13-13-85, the excess shall be used to fund any shortfall of the appropriation as provided for in § 13-37-36.3. The secretary shall report to the Governor by January seventh of each year, the

amount of state aid necessary to fully fund the general aid formula in the current year. If a shortfall in the state aid appropriation for general education exists that cannot be covered by § 13-37-45, the Governor shall inform the Legislature and provide a proposal to eliminate the shortfall.

    Section 10. That § 13-13-79 be amended to read:

    13-13-79. At the same time that state aid is distributed to school districts pursuant to §§ 13-13-10.1 to 13-13-41, inclusive, the secretary of the Department of Education shall distribute funds to sparse school districts by multiplying the result of the calculation in either subdivision 13-13-78(2) or subdivision 13-13-78(3) by seventy-five percent of the per student allocation equivalent as defined in § 13-13-10.1. However, no sparse school district may receive a sparsity benefit in any year that exceeds one hundred ten thousand dollars in any fiscal year.

    Section 11. That § 13-13-82 be amended to read:

    13-13-82. An eligible school district shall receive an amount equal to the per student allocation equivalent as defined in subdivision 13-13-10.1(4) § 13-13-10.1 multiplied by the number of eligible students included in its fall enrollment as defined in subdivision 13-13-10.1(2A) § 13-13-10.1.

    Section 12. That § 13-13-87 be amended to read:

    13-13-87. A school district providing education for children in a residential treatment center or intensive residential treatment center shall receive an amount equal to the current year's per student allocation equivalent as defined in subdivision 13-13-10.1(4) § 13-13-10.1 multiplied by the average daily membership, in the prior school year, for residentially-placed students attending each residential treatment center or intensive residential treatment center for whom tuition is paid by another school district pursuant to § 13-28-11. This section applies only to an educational program provided through a school district.

    Section 13. That § 13-16-7 be amended to read:

    13-16-7. The school board of any school district of this state may at its discretion authorize an annual levy of a tax not to exceed three dollars per thousand dollars of taxable valuation on the taxable valuation of the district for the capital outlay fund for assets as defined by § 13-16-6 or for its obligations under a resolution, lease-purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority. Taxes collected pursuant to such levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.

    For taxes payable in 2011, the total amount of revenue payable from the levy provided in this section may not increase more than the lesser of three percent or the index factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been generated for the taxes payable in 2010. After applying the index factor, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the same as property of equal value. A school district may increase the revenue it receives from taxes on real property above the limit provided by this section for taxes levied to pay

the principal, interest, and redemption charges on any bonds issued after January 1, 2009, which are subject to referendum; for scheduled payment increases on bonds, and for a levy directed by the order of a court for the purpose of paying a judgment against the school district. Any school district created or reorganized after January 1, 2009, is exempt from the limitation provided by this section for a period of two years immediately following its creation.

    For taxes payable in 2012, 2013, 2014, and 2015, the The total amount of revenue payable from the levy provided in this section may not increase annually by more than the lesser of three percent or the index factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been generated for from the taxes payable in 2010 plus any unused index factor from the previous years 2016. After applying the index factor, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the same as property of equal value. A school district may increase the revenue it receives from taxes on real property above the limit provided by this section for taxes levied to pay the principal, interest, and redemption charges on any bonds issued after January 1, 2009, which are subject to referendum, scheduled payment increases on bonds and for a levy directed by the order of a court for the purpose of paying a judgment against such school district. Any school district created or reorganized after January 1, 2009 2016, is exempt from the limitation provided by this section for a period of two years immediately following its creation.

    For taxes payable in 2011, 2012, 2013, 2014, and 2015, the levy limitation of three dollars per thousand dollars of taxable valuation does not apply to any school district. In no year may the annual tax levy provided in this section exceed three dollars per thousand dollars of taxable valuation of the school district for the current year.

    Starting with taxes payable in 2021, a school district is limited to the maximum taxes allowed pursuant to this section or two thousand eight hundred dollars for each enrolled student as determined in the fall enrollment count set forth in § 13-13-10.1, whichever is less. For 2022 and subsequent years, the maximum amount for each enrolled student shall increase by the lesser of three percent or the index factor, as defined in § 10-13-38. The maximum amount for each enrolled student does not apply to any school district that has irrevocably pledged taxes collected to the payment of principal and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority, if the obligation was entered into before July 1, 2016, and the limitation would cause the school district to default on its obligation if limited pursuant to this section.

    Section 14. That § 13-16-7.1 be repealed.

    Section 15. That § 13-16-6 be amended to read:

    13-16-6. The capital outlay fund of the school district is a fund provided by law to meet expenditures which result in the acquisition or lease of or additions to real property, plant, or equipment. Such an expenditure shall be for land, existing facilities, improvement of grounds, construction of facilities, additions to facilities, remodeling of facilities, or for the purchase or lease of equipment. It may also be used for installment or lease-purchase payments for the purchase of real property, plant, or equipment, which have a contracted terminal date not exceeding twenty years from the date of the installment contract or lease-purchase and for the payment of the principal of and interest on capital outlay certificates issued pursuant to § 13-16-6.2.

    Any purchase of one thousand dollars or less may be paid out of the general fund. The total accumulated unpaid principal balances of such installment contracts and lease-purchase and the outstanding principal amounts of such capital outlay certificates may not exceed three percent of the

taxable valuation. The school district shall provide a sufficient levy each year under the provisions of § 13-16-7 to meet the annual installment contract, lease-purchase, and capital outlay certificate payments, including interest.

    A school district which contracts its student transportation may expend from the capital outlay fund an amount not to exceed fifteen percent of the contract amount. In addition, a school district which reimburses for mileage instead of providing transportation pursuant to § 13-30-3, may use the capital outlay fund to pay for fifteen percent of its mileage reimbursement costs.

    The capital outlay fund may be used to purchase textbooks and instructional software.

    The capital outlay fund may be used to purchase warranties on capital assets if the warranties do not include supplies.

    During the period of time beginning on July 1, 2009, and ending on June 30, 2018, any A school district may make payments transfer from its capital outlay fund for the purchase of property insurance and casualty insurance, for payments for energy costs and the cost of utilities, and for motor fuel or for any portion of a contract providing transportation to students or for any mileage reimbursements. However, the total amount that a school district expends from its capital outlay fund for these expenses may to its general fund an amount not to exceed forty-five percent of the total tax revenues deposited in that fund during the current school fiscal year, and for any school district with a current tax levy for the capital outlay fund that is greater than its tax levy for the capital outlay fund in school fiscal year 2008, the total amount expended from the capital outlay fund for these expenses may not exceed forty-five percent of the total tax revenues that would have been deposited in that fund during the current school fiscal year if the tax levy for the capital outlay fund had not been increased since 2008.

    Section 16. That § 13-16-26 be amended to read:

    13-16-26. All or any part of a surplus of any school district fund, except the capital outlay fund provided by §§ 13-16-6 to 13-16-9, inclusive, and the special education fund provided by § 13-37-16 may be transferred to any other school district fund. Only a school district with a plan for reorganization that has been approved by the voters pursuant to § 13-6-47 after July 1, 2007 may transfer within twelve months before the effective date of the reorganization all or any part of a surplus in the capital outlay fund to the general fund. Any unused portion of money that has been transferred into the special education fund may be transferred from the special education fund within the current fiscal year to the fund from which it originated. All or any part of any school district fund may be loaned to any other school district fund for a term not to exceed twenty-four months.

    The restriction on a transfer from the capital outlay fund in this section does not apply to any transfer from the capital outlay fund to the general fund as authorized in § 13-16-6.

    Section 17. That § 13-28-11 be amended to read:

    13-28-11. If a child is residing in a residential treatment center or an intensive residential treatment center which provides care for children who are not living with their parents or guardian, the school residence of the child is the school district where the parents or guardian reside, subject to the provisions of § 13-28-9.

    The school district where a residential treatment center or intensive residential treatment center is located is responsible for providing an educational program for the children who reside in the residential treatment center or intensive residential treatment center. Tuition for a child enrolled in a public school district is the responsibility of the school district where the child was enrolled at the time of placement in the residential treatment center or intensive residential treatment center. The amount of tuition paid by that school district for any child placed in a residential treatment center or intensive residential treatment center who is not eligible for special education services at the time

of placement shall be calculated as follows:

            (1)    Divide the current per student allocation equivalent as defined in subdivision 13-13-10.1(4) § 13-13-10.1 by one hundred seventy-five; and

            (2)    Multiply the result obtained in subdivision (1) by the number of days the child is placed.

    This section applies only to a residential treatment center or intensive residential treatment center that provided an educational program through a school district in the 2013-2014 school year or that initiates an educational program through a school district in a subsequent school year. This section does not apply to any placement by the Unified Judicial System, the Department of Corrections, the Department of Social Services, or any entity approved by the Department of Social Services, including a foster home.

    Section 18. That § 13-28-19.1 be amended to read:

    13-28-19.1. If a school district that was contracting pursuant to § 13-15-11, dissolves and is annexed to another school district prior to before July 1, 2010, the school board for the school district to which the former contracting school district is annexed shall, for the current school year and for each school year thereafter, assign the students who reside in land area that was part of the former contracting district to the school that was receiving the students under the contract. The rate of tuition paid per year to the receiving school district may not be less than the per student allocation equivalent as defined in § 13-13-10.1 for that school fiscal year. In addition, the school district to which the former contracting school district is annexed may compensate the receiving school district for all or any portion of the transportation or other costs associated with the students attending school in the receiving school district. If the parent or guardian of a student assigned to a school district in a bordering state pursuant to this section disapproves of the student's assignment, the school board shall assign that student to an attendance center within the district. However, notwithstanding any other provision of law, the school district is not required to provide transportation to that student.

    Section 19. That § 13-28A-2.1 be amended to read:

    13-28A-2.1. Any agreement to allow the regulation of tuition paid between South Dakota school districts and a bordering state's school districts entered into pursuant to this chapter shall specify the tuition rate to be paid by all local school districts on behalf of students enrolled in the school district of a bordering state. However, no tuition regulation program agreement established pursuant to § 13-28A-1 may specify a rate of tuition that is greater than one hundred ten percent of the per student allocation equivalent as defined in subdivision 13-13-10.1(4) § 13-13-10.1.

    Section 20. That § 13-28A-14 be amended to read:

    13-28A-14. If the rate of tuition specified in a tuition regulation program agreement established pursuant to § 13-28A-1 is greater than the per student allocation equivalent as defined in subdivision 13-13-10.1(4) § 13-13-10.1, any South Dakota school district that pays tuition to a bordering state school district in accordance with that agreement is entitled to the difference between the rate of tuition and the per student allocation equivalent for each student for whom tuition is paid.

    If the rate of tuition specified in a tuition regulation program agreement established pursuant to § 13-28A-1 is less than the per student allocation equivalent, any South Dakota school district that receives tuition from a bordering state school district in accordance with that agreement is entitled to the difference between the per student allocation equivalent and the rate of tuition for each student for whom tuition is received.

    The entitlements created in this section shall be paid out of money appropriated in the general appropriations act for state aid to education.

    Section 21. That § 13-55-49 be amended to read:

    13-55-49. The amount of the scholarship shall be calculated as follows:

            (1)    Multiply the per student allocation as defined in subdivision 13-13-10.1(4) by seventy-five percent; and

            (2)    Multiply the result of subdivision (1) by the percentage of the statewide local need as defined in subdivision 13-13-10.1(5) that is paid with funds appropriated for state aid to general education pursuant to chapter 13-13 one thousand five hundred dollars for the first year of attendance.

    One half of the award shall be paid to an approved institution on behalf of any eligible student there enrolled at the beginning of the fall semester, and the other half shall be paid in the same manner at the beginning of the spring semester. A student must shall be enrolled full-time during the spring semester in order to receive the second installment.

    Section 22. That the code be amended by adding a NEW SECTION to read:

    There is hereby created the Teacher Compensation Review Board within the Department of Education. The board shall review teacher compensation, including comparable wage indexes, in surrounding states at the completion of every three school years. The board will report its findings to the Governor and the Legislature no later than September 30, 2018, and by September thirtieth in every third year thereafter.

    The initial appointment of the members to the board shall be made no later than March 1, 2018. The members shall serve a term of three years.

    The board shall consist of nine members to be appointed as follows:

            (1)    Three members of the South Dakota Senate appointed by the president pro tempore of the Senate, no more than two of whom may be from the same political party;

            (2)    Three members of the South Dakota House of Representatives appointed by the speaker of the House of Representatives, no more than two of whom may be from the same political party; and

            (3)    Three members appointed by the Governor.

    Section 23. That the code be amended by adding a NEW SECTION to read:

    There is hereby created the School Finance Accountability Board within the Department of Education. The board shall consist of five members appointed by the Governor. The members shall serve a term of four years.

    The board may recommend that the provisions of section 24 of this Act be waived for a school district if the district can demonstrate that its lowest monthly general cash fund cash balance percentage is the result of special circumstances.

    The board may recommend that a penalty against a school district imposed under section 27 of this Act be waived, in whole or in part, if the district can demonstrate that its failure to comply with section 27 of this Act is due to special circumstances.

    The School Finance Accountability Board shall promulgate rules pursuant to chapter 1-26 to establish the appeals process provided for in section 27 of this Act, and to establish the factors that may be considered in considering a waiver requested by a school district, which shall include the

impact of retirements.

    Any waivers of sections 24 or 27 of this Act recommended by the School Finance Accountability Board must be approved by the Joint Committee on Appropriations or the Interim Committee on Appropriations. The Department of Education shall annually report to the Governor and the Legislature the information collected pursuant to § 13-8-47 and section 27 of this Act.

    Section 24. That the code be amended by adding a NEW SECTION to read:

    Beginning on July 1, 2018, a school district's state aid for general education as calculated pursuant to § 13-13-73 shall be reduced by subtracting the allowable general fund cash balance from the lowest general fund monthly cash balance. If the result is less than zero, the reduction equals zero.

    A school district created or reorganized after July 1, 2016, is exempt from the reduction provided by this section for a period of three years immediately following its creation.

    Section 25. That the code be amended by adding a NEW SECTION to read:

    The pension fund of the school district is provided for the purpose of financing payments to the South Dakota Retirement System and to finance pensions to retired employees of a school district that has established a pension system. Upon discontinuance of the pension fund any unexpended balance shall be transferred to the general fund. This section is repealed on July 1, 2020.

    Section 26. That § 13-8-47 be amended to read:

    13-8-47. Before the first day of August every school board shall file an annual report with the Department of Education. The report shall contain all the educational and financial information and statistics of the school district as requested in a format established by the Department of Education. The report shall also contain, for each month of the fiscal year, the month-end cash balances of the school district's general fund, capital outlay fund, pension fund, and special education fund. The report shall also contain the following information for the district from the preceding fiscal year:

            (1)    Total teacher compensation, which is defined as the total amount spent on instructional salaries and benefits for certified instructional staff;

            (2)    The total amount spent on instructional salaries for certified instructional staff;

            (3)    The total amount spent on benefits for certified instructional staff;

            (4)    The total number of certified instructional staff employed by the school district; and

            (5)    Any other information necessary to comply with the provisions of this Act.

The business manager, with the assistance of the secretary of the Department of Education, shall make the annual report, and it shall be approved by the school board. The business manager shall sign the annual report and file a copy with the Department of Education as provided in § 13-13-37. The division shall audit the report and return one copy to the school district.

    Reports not filed prior to August thirtieth are considered past due and are subject to the past-due provisions of § 13-13-38.

    Section 27. That the code be amended by adding a NEW SECTION to read:

    The Department of Education shall calculate the following for each school district:

            (1)    The average teacher salary, based on data collected pursuant to §§ 13-8-47 and 13-3-51;

            (2)    The increase in local need pursuant to § 13-13-10.1, excluding any effect due to change in the school district's fall enrollment and less the amount of revenue generated in school fiscal year 2016 pursuant to § 13-10-6 as a percentage increase, from fiscal year 2016 to fiscal year 2017; and

            (3)    The increase in average teacher compensation as a percentage increase, as defined in § 13-8-47, from fiscal year 2016 to fiscal year 2017.

    For each school district, the district's increase in average teacher compensation from fiscal year 2016 to 2017 shall be equal to at least eighty-five percent of the district's increase in local need, as defined in subdivision (2), from fiscal year 2016 to fiscal year 2017 and, notwithstanding any negotiated agreement, at least eighty-five percent of the increase in state aid to general education funding the school district receives for fiscal year 2017 less the amount of revenue generated in fiscal year 2016 pursuant to § 13-10-6 shall be used to increase instructional salaries and benefits for certified instructional staff.

    If a district fails to comply with the requirements of this section, state aid to general education funding to the district in fiscal year 2018 shall be decreased by an amount equal to fifty percent of the amount calculated in subdivision (2). For fiscal years 2019, 2020, and 2021, if a district's average teacher compensation is less than the district's average teacher compensation in fiscal year 2017, state aid to general education funding to the district in the following fiscal year shall be reduced by an amount equal to five hundred dollars for each teacher employed in the school district.

    A school district may request a waiver from any penalty imposed under this section from the School Finance Accountability Board.

    Section 28. That the code be amended by adding a NEW SECTION to read:

    It is the intent of the Legislature that any money appropriated for teacher compensation using the education funding plan included in this Act be used to directly improve teacher recruiting and retention and that the school districts advance this goal by increasing starting teacher salaries and providing for the rapid acceleration of teacher salaries for those below the midpoint in that teacher's applicable pay scale.

     Signed March 11, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\083.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\084.wpd
CHAPTER 84

(SB 8)

Postsecondary technical institute credentialing changed.


        ENTITLED, An Act to revise certain provisions regarding background investigations for prospective employees of the postsecondary technical institutes and to transfer certain funds regarding postsecondary technical credentialing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-10-12 be amended to read:

    13-10-12. Each person over eighteen years of age hired by a school district shall submit to a

criminal background investigation, by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. The school district shall submit completed fingerprint cards to the Division of Criminal Investigation before the prospective new employee enters into service. If no disqualifying record is identified at the state level, the fingerprints shall be forwarded by the Division of Criminal Investigation to the Federal Bureau of Investigation for a national criminal history record check. Any person whose employment is subject to the requirements of this section may enter into service on a temporary basis pending receipt of results of the criminal background investigation. The employing school district may, without liability, withdraw its offer of employment or terminate the temporary employment without notice if the report reveals a disqualifying record. The employing school district may pay any fees charged for the cost of fingerprinting or the criminal background investigation for any person whose employment is subject to the requirements of this section. Any person hired to officiate, judge, adjudicate, or referee a public event sponsored by a school district is not required to submit to a criminal background investigation as required in this section. In addition, any person instructor employed by a postsecondary technical institute is not required to submit to a criminal background investigation as required in this section, unless the person is a teacher who teaches an elementary or secondary level course in an elementary or secondary school facility, or unless the person is an employee, other than a teacher, whose work assignment includes working in an elementary or secondary school facility at the time of initial employment.

    The criminal investigation required by this section with respect to a student teacher completing requirements for teacher certification shall be conducted by the school district. A criminal background investigation, of a student teacher, conducted by a school district may be provided to any other school in which the student engages in student teaching. The school district conducting the criminal background investigation of a student teacher may rely upon the results of that investigation for employment of that person as an employee of the district.

    Section 2. That § 13-39-17.1 be amended to read:

    13-39-17.1. The department may collect fees for credentialing postsecondary technical teachers. The department shall credit all funds generated by these fees to a fund known as the postsecondary technical credentialing fund to be administered by the state treasurer. A payment from this fund is by voucher submitted to the state treasurer and is limited to promulgation of rules, forms, and incidental administrative costs associated with the credentialing of postsecondary technical teachers. Any funds in the postsecondary technical credentialing fund shall be transferred to the state institute fund established pursuant to § 13-42-5.1.

     Signed March 7, 2016
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CHAPTER 85

(SB 132)

Education funding revised.


        ENTITLED, An Act to revise certain provisions regarding education funding.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-13-1.4 be repealed.

    Section 2. That § 13-13-1.5 be repealed.


    Section 3. That § 13-13-1.6 be repealed.

    Section 4. That § 13-13-1.7 be repealed.

    Section 5. That § 13-13-1.9 be repealed.

    Section 6. That § 13-13-11.1 be amended to read:

    13-13-11.1. For the purpose of distributing state aid to education under the provisions of §§ 13-13-10.1 to 13-13-41, inclusive, funds received from the federal government under the provisions of Title VIII of the Elementary and Secondary Education Act for basic support shall be included in total general fund revenue at the times the funds are transferred from the Title VIII of the Elementary and Secondary Education Act fund to the school district funds. For the purposes of distributing state aid to special education under the provisions of § 13-37-36.1, funds received from the federal government under Title VIII of the Elementary and Secondary Education Act funds add on for children with disabilities shall be deposited into the school district special education fund.

    Section 7. That § 13-13-17 be repealed.

    Section 8. That § 13-13-88 be amended to read:

    13-13-88. There is hereby created in the state treasury the workforce education fund to be used for the following purposes:

            (1)    To fund the limited English proficiency adjustment as referenced in § 13-13-89;

            (2)    Provide grants for the purposes of providing secondary career and technical education programs; and

            (3)    Provide additional one-time funding to school districts the Department of Education for one-time education enhancement programs that are defined annually and approved by the Legislature.

    Interest earned on money in the fund shall be deposited into the fund. Any money in the workforce education fund is continuously appropriated to the Department of Education for the purposes stated in this section and § 13-13-89. Any money deposited into and distributed from the fund shall be set forth in an informational budget as described in § 4-7-7.2.

    Section 9. That § 13-13-89 be amended to read:

    13-13-89. The secretary of the Department of Education shall authorize and disburse money from the workforce education fund to fund the state's share of the limited English proficiency adjustment as calculated by §§ 13-13-10.1 and 13-13-73 for state fiscal years 2014, 2015, and 2016. If, after the state's share of the limited English proficiency adjustment is funded, the workforce education fund exceeds two million dollars as of July first of each year, the amount of money in excess of one million dollars Beginning in fiscal year 2017, money from the workforce education fund shall be disbursed as follows:

            (1)    An amount not to exceed one Two million five hundred thousand dollars shall be distributed to fund new and existing secondary career and technical education programs of which two hundred fifty thousand dollars may be distributed to private, nonprofit entities that provide specialized career and technical services and education; and

            (2)    Any amount remaining in the fund over one million dollars after the distribution in subdivision (1) is made shall be allocated to each school district in an amount equal to the money available for such distribution times the ratio of each school district's fall

enrollment to the total state fall enrollment as defined in § 13-13-10.1 the Department of Education for one-time education enhancement programs that are defined annually and approved by the Legislature.

    Section 10. That § 13-28-40 be amended to read:

    13-28-40. An enrollment options program is established to enable any South Dakota kindergarten through twelfth grade student to attend any public school that serves the student's grade level in any South Dakota school district, subject to the provisions in §§ 13-28-40 to 13-28-47, inclusive. For purposes of determining state aid to education as it relates to the provisions of §§ 13-28-40 to 13-28-47, inclusive, fall enrollment as defined in § 13-13-10.1 is used to compute state aid to general education and special education average daily membership fall enrollment as defined in § 13-37-35.1 is used to determine funding for special education.

     Signed March 14, 2016
_______________
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CHAPTER 86

(SB 82)

Native American achievement schools grant program.


        ENTITLED, An Act to establish the Native American achievement schools grant program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 13-14 be amended by adding a NEW SECTION to read:

    There is hereby established the Native American achievement schools grant program to be administered by the Office of Indian Education within the Department of Education. The purpose of the grant program is to fund the establishment of up to three Native American achievement school projects aimed at improving academic outcomes for Native American students.

    Section 2. That chapter 13-14 be amended by adding a NEW SECTION to read:

    An applicant seeking a grant from the Native American achievement schools grant program shall:

            (1)    Be an accredited public school within the State of South Dakota;

            (2)    Serve a student population for which the school-level results for the 2014-15 academic year on the state academic assessment are below the statewide average proficiency in English language arts and mathematics;

            (3)    Serve a student population of which at least fifty percent is comprised of Native American students;

            (4)    Demonstrate access to a physical facility that is adequate for implementation of the project; and

            (5)    Demonstrate the ability to complete the project in accordance with all requirements of this Act, state and federal laws and regulations, and policies of the department.

    Section 3. That chapter 13-14 be amended by adding a NEW SECTION to read:

    In selecting grant recipients, the department shall give priority to projects that meet the requirements of this chapter and show commitment to increasing student success through building cultural identities, encouraging academic perseverance, supporting the development of the whole child, and encouraging student leadership skills by demonstrating one or more of the following characteristics:

            (1)    Offering programming designed to lead to postsecondary readiness and work readiness;

            (2)    Supporting the recruitment and retention of highly effective teachers and administrators;

            (3)    Demonstrating commitment to the implementation of the Oceti Sakowin Essential Understandings and Standards across the curriculum;

            (4)    Demonstrating a commitment to the implementation of courses offering instruction in Dakota, Lakota, or Nakota languages;

            (5)    Maintaining a school environment that cultivates diversity of the student population and promotes a sense of belonging;

            (6)    Forming partnerships with community organizations or governmental entities; and

            (7)    Planning for sustainability.

    Section 4. That chapter 13-14 be amended by adding a NEW SECTION to read:

    The department shall inform potential applicants of the application and award period and of the amount of funding available for the grants. The department shall also provide the application form and scoring rubric that informs potential applicants of the weight to be assigned to each characteristic referenced in section 3 of this Act within the selection process. Applicants shall complete the application form and provide any additional information requested by the department. The application is not complete until all necessary information is submitted.

    Section 5. That chapter 13-14 be amended by adding a NEW SECTION to read:

    The department, with the assistance of a group of reviewers designated by the secretary of education, shall determine grant recipients and award amounts utilizing a competitive process. The group of reviewers shall include three members of the Indian Education Advisory Council established pursuant to § 13-1-47.

    Section 6. That chapter 13-14 be amended by adding a NEW SECTION to read:

    In addition to complying with the requirements in section 4 of this Act and the additional requirements of this chapter, all grant recipients will be subject to the following conditions:

            (1)    The amount of a grant may not exceed the actual cost of the project as proposed in the application;

            (2)    The grant shall be paid on a reimbursement basis, following procedures and requirements outlined by the department;

            (3)    Any funds provided through the grant must be necessary and reasonable to complete the project;

            (4)    Necessary documentation, as determined by the department, shall be submitted to support all expenditures;

            (5)    Expenditures must be approved before the end of the grant period;

            (6)    A grant project must expend all funds provided through the grant within thirty-six months following grant approval; and

            (7)    No grant funds may be used for costs associated with writing the grant proposal, contractual obligations that became effective prior to the award period of the grant, purchases that become the property of any individual or organization other than the grant recipient, or purchases or services beyond the project outcomes or activities.

    Section 7. That chapter 13-14 be amended by adding a NEW SECTION to read:

    Each grant recipient shall submit grant status reports to the department on a quarterly basis, and a final grant report including data related to the implementation of the project. The department shall determine the details required in the reports and the deadlines for report submissions. Each grant recipient shall provide the department with reasonable access to facilities and records that may be necessary for the department to determine compliance with the terms of the grant and all the requirements of this Act.

    Section 8. That chapter 13-14 be amended by adding a NEW SECTION to read:

    The submission of false or misleading statements or information as part of a grant application or the failure to comply with any requirement shall be considered a default upon the terms of a grant. In the event of a default, the department may require the grant recipient to repay any funds dispersed under the grant to the department within thirty days of a written demand from the department. The department may begin a civil action to recover any grant funds that a grant recipient is required to repay under this section.

     Signed March 15, 2016
_______________
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CHAPTER 87

(HB 1169)

Attendance center joint powers.


        ENTITLED, An Act to allow a school district to operate an attendance center within another school district.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 13-23 be amended by adding a NEW SECTION to read:

    A school board may establish an attendance center outside the boundaries of its school district that is within the boundaries of another school district only when both school districts have entered into a joint powers agreement pursuant to chapter 1-24 to provide instruction to the students enrolled in the attendance center.

    If each school board adopts a resolution to approve the joint powers agreement, the school board for the school district that will operate the attendance center shall submit the joint powers agreement and each school board's resolution of approval to the secretary of education.

    Section 2. That chapter 13-23 be amended by adding a NEW SECTION to read:



    The operation of an attendance center under the authority of this Act does not affect the operation or authority of any other type of organization to provide an education such as a cooperative educational learning unit or a virtual school.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    A joint powers agreement to operate an attendance center not owned by the school district within the boundaries of another school district is not required for any attendance center that was established before January 1, 2016.

     Signed March 10, 2016
_______________
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CHAPTER 88

(HB 1118)

Time limited administering statewide academic assessments.


        ENTITLED, An Act to limit the amount of instructional time that may be spent administering statewide academic assessments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The amount of instructional time spent to administer statewide academic assessments required pursuant to § 13-3-55 in any school district in any school year may not exceed two percent of the total number of instructional hours required in a school year pursuant to § 13-26-1.

     Signed March 16, 2016
_______________
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CHAPTER 89

(HB 1013)

Achievement tests for students receiving alternative instruction,
schedule revised.


        ENTITLED, An Act to revise certain provisions regarding alternative instruction achievement tests for children excused from school attendance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-27-3 be amended to read:

    13-27-3. A child shall be excused from school attendance, pursuant to § 13-27-2, because the child is otherwise provided with alternative instruction for an equivalent period of time, as in the public schools, in the basic skills of language arts and mathematics. The parent or guardian of the child shall identify in the application the place where the child will be instructed and any individual who will instruct the child. The individuals are individual is not required to be certified. The

secretary of the Department of Education may investigate and determine whether the instruction is being provided. Failure to provide instruction is grounds for the school board, upon thirty days' notice, to revoke the excuse from school attendance. The secretary of the Department of Education may inspect the records of an alternative education program with fourteen days' written notice if the secretary has probable cause to believe the program is not in compliance with this section. The records to be inspected are limited to attendance and evidence showing academic progress.

    No individual may instruct more than twenty-two children. All instructions shall be given so as to lead to a mastery of the English language. Children receiving alternative instruction who are in grades two, four, eight, and eleven shall take a nationally standardized achievement test of the basic skills. The test may be the test provided by the state and used in the public school district where the child is instructed or another nationally standardized achievement test chosen by and provided at the expense of the child's parent, guardian, or school giving alternative instruction. The test may be monitored by the local school district where the child is instructed.

     Signed February 25, 2016
_______________
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CHAPTER 90

(SB 28)

Immunization requirements for school enrollment changed.


        ENTITLED, An Act to require meningococcal immunization for school entry.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-28-7.1 be amended to read:

    13-28-7.1. Any pupil child entering school or an early childhood program in this state, shall, prior to admission, be required to present to the appropriate school authorities certification from a licensed physician that the child has received or is in the process of receiving adequate immunization against poliomyelitis, diphtheria, pertussis, rubeola, rubella, mumps, tetanus, meningitis, and varicella, according to recommendations provided by the Department of Health. The Department of Health may modify or delete any of the required immunizations. As an alternative to the requirement for a physician's certification, the pupil child may present:

            (1)    Certification from a licensed physician stating the physical condition of the child would be such that immunization would endanger the child's life or health; or

            (2)    A written statement signed by one parent or guardian that the child is an adherent to a religious doctrine whose teachings are opposed to such immunization; or

            (3)    A written statement signed by one parent or guardian requesting that the local health department give the immunization because the parents or guardians lack the means to pay for such immunization.

    The Department of Health may promulgate reasonable rules, in accordance with pursuant to chapter 1-26, to require compliance and documentation of adequate immunization, to define appropriate certification, and to specify standard procedure.

     Signed February 25, 2016
_______________
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CHAPTER 91

(HB 1096)

An exemption from the tuition limit
for certain border school districts.


        ENTITLED, An Act to provide for the exemption of certain schools from a tuition limitation applied to some bordering state school districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-28-19.1 be amended to read:

    13-28-19.1. If a school district that was contracting pursuant to § 13-15-11, dissolves and is annexed to another school district prior to July 1, 2010, the school board for the school district to which the former contracting school district is annexed shall, for the current school year and for each school year thereafter, assign the students who reside in land area that was part of the former contracting district to the school that was receiving the students under the contract. The rate of tuition paid per year to the receiving school district may not be less than the per student allocation as defined in § 13-13-10.1 for that school fiscal year and is not subject to the tuition limitation in § 13-28A-2.1. In addition, the school district to which the former contracting school district is annexed may compensate the receiving school district for all or any portion of the transportation or other costs associated with the students attending school in the receiving school district. If the parent or guardian of a student assigned to a school district in a bordering state pursuant to this section disapproves of the student's assignment, the school board shall assign that student to an attendance center within the district. However, notwithstanding any other provision of law, the school district is not required to provide transportation to that student.

     Signed March 10, 2016
_______________
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CHAPTER 92

(HB 1145)

School district to accept summer school credits
from an accredited school.


        ENTITLED, An Act to require accredited schools to accept transfer credits for courses taken by students from other accredited schools during the summer.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 13-33 be amended by adding a NEW SECTION to read:

    Any school accredited by the Department of Education shall accept transfer credits earned by a student for any course taken by the student from another school accredited by the Department of Education outside the regular school term as established pursuant to § 13-26-2. However, an accredited school is only required to accept the transfer credits if the student notifies a school administrator of the credits sought prior to taking the course. If the student fails to provide the advance notice, the school may refuse to accept the credits.

    Each school district shall establish a policy for accepting transfer credits pursuant to this Act. If, upon review of the coursework for which transfer credit is sought, a school determines that the course rigor is not sufficient to meet the graduation requirements established by the Board of Education pursuant to § 13-1-12.1 or by the school, the transfer credits earned by the student for the course will count as elective credits, but the course will not count as a course required for graduation. If the school accepting the transfer credits determines that the credits do not meet graduation requirements, the school shall notify the student in writing to explain the reason for that determination and to cite the provisions of formally adopted school policy that apply.

     Signed March 25, 2016
_______________
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CHAPTER 93

(HB 1043)

State aid to special education.


        ENTITLED, An Act to revise the state aid to special education formula.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-37-16 be amended to read:

    13-37-16. For taxes payable in 2016 2017, and each year thereafter, the school board shall levy no more than one dollar and forty and nine fifty and five tenths cents per thousand dollars of taxable valuation, as a special levy in addition to all other levies authorized by law for the amount so determined to be necessary, and such levy shall be spread against all of the taxable property of the district. The proceeds derived from such levy shall constitute a school district special education fund of the district for the payment of costs for the special education of all children in need of special education or special education and related services who reside within the district pursuant to the provisions of §§ 13-37-8.2 to 13-37-8.10, inclusive. The levy in this section shall be based on valuations such that the median level of assessment represents 85% eighty-five percent of market value as determined by the Department of Revenue. The total amount of taxes that would be generated at the levy pursuant to this section shall be considered local effort. Money in the special education fund may be expended for the purchase or lease of any assistive technology that is directly related to special education and specified in a student's individualized education plan. This section does not apply to real property improvements.

    Section 2. That § 13-37-35.1 be amended to read:

    13-37-35.1. Terms used in chapter 13-37 mean:

            (1)    "Level one disability," a mild disability;

            (2)    "Level two disability," cognitive disability or emotional disorder;

            (3)    "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, orthopedic impairment, or traumatic brain injury;

            (4)    "Level four disability," autism;

            (5)    "Level five disability," multiple disabilities;

            (5A)    "Level six disability," prolonged assistance;

            (6)    "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;

            (7)    "Local effort," shall be calculated for taxes payable in 2016 and thereafter using a special education levy of one dollar and twenty and nine thirty and five tenths cents per one thousand dollars of valuation;

            (8)    "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 2015 2016, is $4,896.58 $5,456. For each school year thereafter, the allocation for a student with a level one disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

            (9)    "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 2015 2016, is $12,037.48 $12,592. For each school year thereafter, the allocation for a student with a level two disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

            (10)    "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 2015 2016, is $16,002.36 $16,049. For each school year thereafter, the allocation for a student with a level three disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

            (11)    "Allocation for a student with a level four disability," for the school fiscal year beginning July 1, 2015 2016, is $14,288.28 $15,564. For each school year thereafter, the allocation for a student with a level four disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

            (12)    "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 2015 2016, is $21,634.78 $27,799. For each school year thereafter, the allocation for a student with a level five disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

            (12A)    "Allocation for a student with a level six disability," for the school fiscal year beginning July 1, 2015 2016, is $7,796.66 $8,007. For each school year thereafter, the allocation for a student with a level six disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;

            (13)    "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education in accordance with rules promulgated pursuant to § 13-37-1.1;

            (14)    "Fall enrollment," the number of kindergarten through twelfth grade pupils students enrolled in all schools operated by the school district on the last Friday of September of the previous school year minus the number of students for whom the district receives tuition, except any nonresident student who is in the care and custody of a state agency and is attending a public school and any student for whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students for whom the district pays tuition;

            (15)    "Nonpublic school," a sectarian organization or entity which is accredited by the secretary of education for the purpose of instructing children of compulsory school age. This definition excludes any school that receives a majority of its revenues from public funds;

            (16)    "Nonpublic fall enrollment," the number of children under age eighteen, who are

approved for alternative instruction pursuant to § 13-27-2 on the last Friday of September of the previous school year plus:

            (a)    For nonpublic schools located within the boundaries of a public school district with a fall enrollment of six hundred or more on the last Friday of September of the previous school year, the number of kindergarten through twelfth grade pupils students enrolled on the last Friday of September of the previous regular school year in all nonpublic schools located within the boundaries of the public school district;

            (b)    For nonpublic schools located within the boundaries of a public school district with a fall enrollment of less than six hundred on the last Friday of September of the previous school year, the number of resident kindergarten through twelfth grade pupils students enrolled on the last Friday of September of the previous school year in all nonpublic schools located within the State of South Dakota;

            (17)    "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;

            (18)    "Local need," an amount to be determined as follows:

            (a)    Multiply the special education fall enrollment by 0.1004 0.1 and multiply the result by the allocation for a student with a level one disability;

            (b)    Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;

            (c)    Multiply the number of students having a level three disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level three disability;

            (d)    Multiply the number of students having a level four disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level four disability;

            (e)    Multiply the number of students having a level five disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level five disability;

            (f)    Multiply the number of students having a level six disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level six disability;

            (g)    When calculating local need at the statewide level, include the amount set aside for extraordinary costs defined in § 13-37-40;

            (h)    When calculating local need at the statewide level, include the amount set aside for the South Dakota School for the Blind and Visually Impaired;

            (i)    Sum the results of (a) to (h), inclusive;

            (19)    "Effort factor," the school district's special education tax levy in dollars per thousand divided by $1.209 $1.305. The maximum effort factor is 1.0.

     Signed March 15, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\094.wpd
CHAPTER 94

(SB 129)

Suicide awareness training for teachers.


        ENTITLED, An Act to establish certain suicide awareness and prevention training requirements for certain school employees based on the Jason Flatt Act.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 13-42 be amended by adding a NEW SECTION to read:

    The South Dakota Board of Education shall promulgate rules, pursuant to chapter 1-26, to include a minimum of one hour of suicide awareness and prevention training as a requirement that an applicant must meet in order to be issued an initial certificate and a renewal certificate as a teacher, administrator, or other educational professional. The board shall, after consultation with suicide prevention or counseling experts, identify evidence-based resources that will fulfill the suicide awareness and prevention training requirement and shall make the list of the resources available to school districts. The training required may be accomplished through self-review of suicide prevention materials that meet the guidelines developed by the board. The requirement for suicide awareness and prevention training for initial certification or to renew a certificate begins after July 1, 2017.

    Section 2. That chapter 13-42 be amended by adding a NEW SECTION to read:

    There is no cause of action for any loss or damage caused by any act or omission resulting from the implementation of the provisions of section 1 of this Act or resulting from any training, or lack of training, required by section 1 of this Act unless the loss or damage was caused by willful or wanton misconduct. The training, or lack of training, required by the provisions of this Act may not be construed to impose any specific duty of care.

     Signed March 14, 2016
_______________
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CHAPTER 95

(HB 1136)

Boards of Regents and Education
to report to the Legislative Planning Committee.


        ENTITLED, An Act to eliminate the Council on Higher Education Policy Goals, Performance, and Accountability and to transfer its functions to the Legislative Planning Committee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-48A-7 be amended to read:

    13-48A-7. The Board of Regents and the Board of Education shall each provide to the Council on Higher Education Policy Goals, Performance, and Accountability Legislative Planning Committee an annual accountability report as determined by the committee. The initial accountability report, to

be provided to the council in 2013, shall contain, for each of the postsecondary education institutions under the respective board's control, information on the following:

            (1)    Improvements in on-time degree completions;

            (2)    Affordability for students;

            (3)    The placement of graduates in jobs or further study in South Dakota; and

            (4)    Improvements in the percentages of graduates who are successful in passing licensure, certification, or exit exams administered by third parties.

    The council shall determine the content of subsequent accountability reports.

    Section 2. That § 13-48A-1 be repealed.

    Section 3. That § 13-48A-2 be repealed.

    Section 4. That § 13-48A-5 be repealed.

    Section 5. That § 13-48A-6 be repealed.

    Section 6. That § 13-48A-8 be repealed.

     Signed March 9, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\096.wpd
CHAPTER 96

(SB 10)

Harding Hall renovation and appropriation.


        ENTITLED, An Act to authorize the Board of Regents to contract for the renovation and construction of an addition to Harding Hall on the campus of South Dakota State University and to make an appropriation therefor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. The Board of Regents may contract for the renovation and construction of an addition to Harding Hall, on the campus of South Dakota State University in Brookings, with furnishings and equipment including heating, air conditioning, plumbing, water, sewer, electric facilities, sidewalks, parking, landscaping, architectural and engineering services, asbestos abatement, and other services or actions as may be required to accomplish the project for an estimated cost not to exceed twelve million dollars, subject to permitted adjustments pursuant to section 3 of this Act.

    Section 2. There is hereby appropriated from the higher education facilities fund allocable to South Dakota State University for the purposes of maintenance and repair to address the portion of the project that would otherwise involve maintenance and repair projects, the sum of three million three hundred thousand dollars ($3,300,000), or so much thereof as may be necessary; the sum of five million dollars ($5,000,000), or so much thereof as may be necessary, from other funds derived from tuition; and the sum of three million seven hundred thousand dollars ($3,700,000), or so much thereof as may be necessary, together with additional sums received pursuant to section 4 of this Act, to cover the remaining estimated cost, and permitted adjustments pursuant to section 3 of this Act.



    Section 3. The cost estimates contained in this Act have been stated in terms of 2015 values. The Board of Regents may adjust the cost estimates to reflect inflation as measured by the Building Cost Index reported by the Engineering News Record, additional expenditures required to comply with regulations adopted after the effective date of this Act, or federal funds received pursuant to section 4 of this Act.

    Section 4. The Board of Regents may accept and expend any funds obtained for the project authorized in this Act from donations, federal sources, or any other external sources, all of which comprise a special fund for the benefitted project; and all money deposited into that fund are hereby appropriated to the projects authorized by this Act, subject to the limitations stated in sections 1 to 3, inclusive, of this Act.

    Section 5. The administration of the design and construction of the projects authorized in this Act shall be under the general charge and supervision of the Bureau of Administration as provided in chapter 5-14.

    Section 6. The executive director of the Board of Regents shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

     Signed February 18, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\097.wpd
CHAPTER 97

(SB 103)

Board of Regents to transfer real property.


        ENTITLED, An Act to authorize the Board of Regents to transfer certain real property to South Dakota State University Growth Partnership, Ltd. for research park purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding any provisions of law to the contrary, upon the request of the Board of Regents and the Governor, the Commissioner of School and Public Lands shall transfer title to up to twenty-five acres of the following real estate located in Brookings County and any related personal property and improvements located on the property, to South Dakota State University Growth Partnership, Ltd.:

                Lots 1 to 32, Lots A to E and Road Right of Ways, All in Block 1 of SDSU Innovation Campus Addition to the Northwest Quarter (NWl/4) of Section Nineteen (19), subject to Lots H-3, H-4 and P-l thereof, in Township One Hundred and Ten (110) North, Range Forty-nine (49) West of the 5th P.M., in the City of Brookings, Brookings County, South Dakota, according to the recorded plat thereof.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Any transfer of real property pursuant to section 1 of this Act shall be contingent on the land being used for the activities of a primary tenant of a research park, as defined by § 5-29-2.

    Section 3. That the code be amended by adding a NEW SECTION to read:


    Should any real property transferred pursuant to section 1 of this Act cease to be used for two consecutive years for the purpose stated in section 2 of this Act, the title to such real property and any related personal improvements located on the property shall revert to the Board of Regents for the use and benefit of South Dakota State University.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Any deed transferring title pursuant to section 1 of this Act shall contain the restrictions necessary to effectuate the requirements of sections 2 and 3 of this Act and § 5-2-12.

     Signed February 23, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\098.wpd
CHAPTER 98

(HB 1163)

Veterans use of tuition benefits revised.


        ENTITLED, An Act to revise the periods of time during which veterans may use tuition benefits at institutions under the control of the Board of Regents.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-55-3 be amended to read:

    13-55-3. The benefits to which a veteran is entitled under § 13-55-2 shall may be used by the veteran within twenty years after at any period after the date specified in § 33A-2-2 as the end of the qualifying period during which the veteran served, within twenty years at any period after the end of the period of eligibility for any of the awards specified in subdivision 33A-2-2(7) for which the veteran qualifies, within twenty years or at any period after the date the veteran was rated by the veterans administration as ten percent or more disabled, or within six years after the date of the veteran's discharge from the military service, whichever is later.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\099.wpd
CHAPTER 99

(HB 1061)

Tuition benefit to teachers
who enroll in courses not subsidized by the general fund.


        ENTITLED, An Act to provide a tuition benefit to certain teachers who enroll in courses under the management and control of the Board of Regents that are not subsidized by the general fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-55-24 be amended to read as follows:

    13-55-24. Any elementary or secondary teacher or vocational instructor who is required to take

college courses as a condition of employment or to maintain a certificate to teach may, upon compliance with § 13-55-27 and all of the requirements for admission, attend and pursue any undergraduate or graduate course in any state educational institution under the control and management of the Board of Regents upon the payment of fifty percent of tuition and one hundred percent of required fees. If the teacher enrolls in a distance education course under the control and management of the Board of Regents or other course under the control and management of the Board of Regents that is not subsidized by the general fund, the teacher is entitled to a benefit of fifty percent of the tuition to be paid to the institution by the Board of Regents based on the in-state resident tuition rate. The Board of Regents shall maintain an annual record of the number of participants and the tuition dollar value of such participation.

     Signed March 15, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\100.wpd
CHAPTER 100

(SB 81)

Paraprofessional tuition assistance scholarship program.


        ENTITLED, An Act to create the paraprofessional tuition assistance scholarship program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 13-55 be amended by adding a NEW SECTION to read:

    There is hereby established the paraprofessional tuition assistance scholarship program to be administered by the Office of Indian Education within the Department of Education. The purpose of the scholarship program is to allow the pursuit of full teacher certification by the paraprofessionals employed by qualifying schools.

    Section 2. That chapter 13-55 be amended by adding a NEW SECTION to read:

    The department shall select eligible paraprofessionals for participation in the program. In order to be eligible for the paraprofessional tuition assistance scholarship program, an applicant shall:

            (1)    Be employed as a paraprofessional in a qualifying public school;

            (2)    Be recommended for the program by a principal in the qualifying public school; and

            (3)    Enroll in an accredited postsecondary institution located in South Dakota that participates in the program and offers a baccalaureate degree in elementary or secondary education.

    Section 3. That chapter 13-55 be amended by adding a NEW SECTION to read:

    For purposes of this Act, a qualifying school is any school in the state that:

            (1)    Is an accredited public school;

            (2)    Is willing to collaborate with the accredited postsecondary institution on student teaching and other associated requirements of the elementary or secondary education program;

            (3)    Serves a student population for which the school-level results for the 2014-15 academic year on the state academic assessment are below the statewide average proficiency in

English language arts and mathematics; and

            (4)    Serves a student population of which at least fifty percent is comprised of Native American students.

    Section 4. That chapter 13-55 be amended by adding a NEW SECTION to read:

    A person is eligible to participate in the paraprofessional tuition assistance scholarship program for up to four consecutive academic years or until the attainment of a baccalaureate degree in elementary or secondary education, whichever comes first. The secretary of education may grant exceptions to the continuous enrollment requirement if good cause is demonstrated.

    Section 5. That chapter 13-55 be amended by adding a NEW SECTION to read:

    The amount of tuition assistance provided in any semester to an eligible student may not exceed the cost of the credit hours for which the student registered for that semester. During a single academic year, including the summer session, the amount of tuition assistance provided to any eligible student may not exceed the tuition and generally applicable fees for forty-five credit hours at a South Dakota public postsecondary institution as of July 1, 2015. Total tuition assistance may not exceed the tuition and generally applicable fees for one hundred twenty credit hours. Tuition assistance payments shall be paid to a postsecondary institution on behalf of an eligible student there enrolled in the amount of tuition and fees of an eligible student upon submission of proof of registration of the student at the institution. Participating institutions shall establish proof of registration for all paraprofessional tuition assistance scholarship students for each semester.

    Section 6. That chapter 13-55 be amended by adding a NEW SECTION to read:

    In order to maintain eligibility for the paraprofessional tuition assistance scholarship program, an eligible student shall:

            (1)    Maintain enrollment at the accredited postsecondary institution;

            (2)    Maintain a cumulative 2.8 grade point average on a 4.0 scale;

            (3)    Make satisfactory academic progress toward a degree as determined by the student's program of study; and

            (4)    Continue working as a paraprofessional in the qualifying school while taking coursework.

    If, however, factors beyond the control of an eligible student prevent the student from meeting any of the requirements of subdivisions (1) to (3), inclusive, the department may temporarily waive the requirements of those subdivisions if good cause is demonstrated.

    Section 7. The provisions of this Act are repealed on June 30, 2020.

     Signed March 15, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\101.wpd
CHAPTER 101

(SB 67)

Appropriation to support
the South Dakota need-based grant program.


        ENTITLED, An Act to establish a postsecondary scholarship grant fund, to make an appropriation therefor, to transfer certain money, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-55A-14 be amended to read:

    13-55A-14. There is hereby created in the education enhancement trust fund the South Dakota need-based postsecondary scholarship grant fund for the purpose of providing grants and scholarships through the Board of Regents pursuant to this chapter to qualified students for the need-based grant program pursuant to chapter 13-55A and the critical teaching needs scholarship program pursuant to §§ 13-55-64 to 13-55-71, inclusive. Any contributions into the education enhancement trust fund not designated for any other purpose shall be allocated to the need-based postsecondary scholarship grant fund. All distributions from the South Dakota need-based postsecondary scholarship grant fund are subject to transfer to the general fund and expenditure of all distributions shall be by an appropriation by the Legislature through the General Appropriations Act or special appropriations acts for the need-based postsecondary scholarship grant programs consistent with the provision of S.D. Const., Art. XII,§ 6, and § 4-5-29.2. The board may accept any gifts, contributions, or funds obtained from any other source for the purpose of carrying out the provisions of this section. For each fiscal year, the board may determine the amounts awarded for each scholarship grant program and shall award all available funds from the postsecondary scholarship grant fund annual transfer pursuant to § 4-5-29.2.

    Section 2. That § 4-5-29.2 be amended to read:

    4-5-29.2. Pursuant to S.D. Const., Art. XII, § 6, the state investment officer shall determine the market value of the education enhancement trust fund as of December 31, 2003, and each calendar year thereafter less the investment expenses transferred pursuant to § 4-5-30. The state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2008, the market value shall be determined by adding the market value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the education enhancement trust fund to the state general fund as soon as practicable after July first of the next fiscal year. For fiscal year 2017, the portion of the transfer to the general fund for the postsecondary scholarship grant programs shall be $126,707.35. Beginning in fiscal year 2015 2018, the portion of the transfer to the general fund for the need-based matching program postsecondary scholarship grant programs, shall be calculated by the state investment officer based on the relative share of the contributions made to the need-based postsecondary scholarship grant fund created pursuant to § 13-55A-14 to the most recently calculated total fair value of the education enhancement fund including the contribution. The calculation shall be updated monthly to reflect any additional contributions to the education enhancement trust fund and the portion of the transfer to the general fund for the need-based matching program postsecondary scholarship grant programs shall be based on the average of the monthly calculation as of December thirty-first, using the months available for the first forty-eight months and then the most recent forty-eight calendar months thereafter.



    Beginning in fiscal year 2015, a portion of the funds annually distributed to the general fund pursuant to this section representing the percentage of the appropriation in SL 2013, ch 91, § 9, when deposited, to the total fair value of the education enhancement fund applied to the distribution amount shall be used to fund the critical teaching needs scholarship program created in §§ 13-55-64 to 13-55-71, inclusive.

    Section 3. The state treasurer shall transfer the original contribution of one million five hundred thousand dollars from the critical teaching needs scholarship fund pursuant to § 13-55-64 and one million five hundred thousand dollars from the need-based grant fund created pursuant to § 13-55A-14 into the postsecondary scholarship grant fund. The state investment officer shall calculate the fair value of the transfer amounts for purposes of the monthly calculations per § 4-5-29.2 using the most recent monthly calculation applied to the most recently calculated total fair value of the education enhancement trust fund.

    Section 4. There is hereby appropriated from the general fund the sum of two million one hundred thousand dollars ($2,100,000) to the postsecondary scholarship grant fund established pursuant to § 13-55A-14.

    Section 5. The state treasurer shall transfer from the tuition and fees fund created by § 13-53-15 to the postsecondary scholarship grant fund the sum of one million four hundred thousand dollars.

    Section 6. The executive director of the Board of Regents shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 7. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 8. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 22, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\102.wpd
CHAPTER 102

(SB 159)

Partners in education tax credit program.


        ENTITLED, An Act to provide a tax credit to insurance companies that contribute to an organization providing educational scholarships to certain students.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms, as used in this Act, mean:

            (1)    "Division," the Division of Insurance in the Department of Labor and Regulation;

            (2)    "Educational scholarship," a grant to an eligible student to cover all or part of the tuition and fees at a qualifying school. The average value of all scholarships awarded by a scholarship granting organization may not exceed eighty-two and five-tenths percent of

the state's share of the per student allocation, as defined in § 13-13-10.1. One half of the scholarship amount shall be paid by the scholarship granting organization at the beginning of the first semester, and one half shall be paid at the beginning of the second semester;

            (3)    "Eligible student," any student who:

            (a)    Is a member of a household whose total annual income, the year before the student enters the program, did not exceed one hundred fifty percent of the income standard used to qualify for a free or reduced-price lunch under the national free or reduced-price lunch program established under 42 U.S.C. section 1751, et seq. as of January 1, 2016. If sufficient funding is available, once a student meets the initial income eligibility requirement, the student remains income eligible for three years or if the student is entering high school, until the student graduates high school regardless of household income. After the initial period of income eligibility, a student remains eligible if the student is a member of a household whose total annual income in the prior year did not exceed two hundred percent of the income standard used to qualify for a free or reduced-price lunch;

            (b)    Received an educational scholarship under this program the preceding semester, attended a public school the preceding semester, is starting at a K-12 school in South Dakota for the first time, or is entering kindergarten, first grade, or ninth grade; and

            (c)    Resides in South Dakota while receiving the educational scholarship;

            (4)    "Low-income eligible student," any student who is a member of a household whose total annual income, the year before the student enters the program, did not exceed one hundred percent of the income standard used to qualify for a free or reduced-price lunch under the national free or reduced-price lunch program established under 42 U.S.C. section 1751, et seq. as of January 1, 2016.

            (5)    "Parent," any guardian, custodian, or other person with authority to act in place of a parent for the child;

            (6)    "Program," the partners in education tax credit program established pursuant to this Act;

            (7)    "Qualifying school," any nonpublic school that operates within the boundaries of South Dakota, is accredited by the Department of Education, provides education to elementary or secondary students, and has notified a scholarship granting organization of its intention to participate in the program and comply with the program requirements. This definition excludes any school that receives a majority of its revenues from public funds;

            (8)    "Scholarship granting organization," a nonprofit organization that complies with the requirements of the program and provides educational scholarships to students.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    The partners in education tax credit program is hereby established. Through the program, any company that is liable to pay the insurance company premium and annuity tax, pursuant to § 10-44-2, may claim credit for contributions made to the scholarship granting organization. The tax credit may be claimed by the company on the annual premium tax return in an amount equal to, up to eighty percent, of the total contributions made to the scholarship granting organization in the previous taxable year. However, no tax credit may be claimed pursuant to this Act for the portion of the tax that is collected and set aside for workers' compensation coverage as provided in subdivision 10-44-2(4) or for the tax that is levied on fire insurance premiums pursuant to § 10-44-9.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding the provisions of section 2 of this Act, the total amount of tax credits claimed on annual premium tax returns pursuant to this Act may not exceed two million dollars in fiscal year 2017 and each year thereafter.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Each scholarship granting organization shall:

            (1)    Annually notify the division of its intent to provide educational scholarships to eligible students attending qualifying schools;

            (2)    Demonstrate to the division that it has been granted exemption from the federal income tax pursuant to section 501(c)(3) of the Internal Revenue Code;

            (3)    Distribute periodic scholarship payments from the educational scholarship fund account as checks made out to an eligible student's parent and mailed to the qualifying school where the eligible student is enrolled. The parent shall endorse the check before it may be deposited;

            (4)    Annually collect written documentation, from each qualifying school that accepts educational scholarship payments, verifying the school is accredited by the Department of Education;

            (5)    Provide a division approved receipt to companies for contributions made to the scholarship granting organization;

            (6)    Ensure that at least ninety percent of its revenue from contributions is spent on educational scholarships, and that all revenue from interest or investments is spent on scholarships;

            (7)    Carry forward no more than twenty-five percent of its revenue from contributions in the educational scholarship fund account from the fiscal year in which they were received to the next fiscal year. Contributions that are not carried forward shall be remitted to the division;

            (8)    Submit to the division the names and addresses of all board members and documentation validating that criminal background checks have been conducted on all of its employees and board members, and exclude any employee or board member from employment or governance who might reasonably pose a risk to the appropriate use of contributed funds;

            (9)    Ensure that scholarships are portable during the school year and can be used at any qualifying school to which the scholarship granting organization grants scholarships and that accepts the eligible student according to a parent's wishes. If a student moves to a new qualifying school during a school year, the scholarship amount may be prorated; and

            (10)    Report to the division by March first of each year the following information, prepared by a certified public accountant regarding its contributions in the previous calendar year:

            (a)    The name and address of each contributing company;

            (b)    The total number and total dollar amount of contributions received from each company; and

            (c)    The total number and total dollar amount of educational scholarships awarded to

eligible students, the total number and total dollar amount of educational scholarships awarded to low-income eligible students, and the percentage of first-time recipients of educational scholarships who were enrolled in a public school in the prior school year;

            (11)    Any donation received that is not awarded a tax credit pursuant to section 2 of this Act is not subject to subdivisions (5) to (7), inclusive, of this section.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The scholarship granting organization shall demonstrate financial accountability by annually submitting to the auditor general a financial information report that complies with uniform financial accounting standards and is the result of an audit conducted by a certified public accountant and by having the auditor certify that the report is free of material misstatements. The scholarship granting organization shall provide the audit to the auditor general within one hundred eighty days after the completion of the scholarship granting organization's fiscal year.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    The responsibilities of an eligible student and an eligible student's parent in participating in the program include the following:

            (1)    An eligible student's parent shall select a qualifying school and apply for admission of the eligible student;

            (2)    An eligible student participating in the program shall remain in attendance throughout the school year, at the qualifying school in which the eligible student is enrolled, unless, excused by the school for illness or other good cause, or the eligible student has transferred to another school;

            (3)    An eligible student and an eligible student's parent shall comply with the published policies of the qualifying school in which the eligible student is enrolled;

            (4)    An eligible student's parent shall ensure that the eligible student participating in the program takes the norm-referenced tests or statewide assessments administered by the qualifying school; and

            (5)    The parent of an eligible student, upon receipt of a scholarship warrant from the scholarship granting organization, shall restrictively endorse the warrant to the qualifying school district for deposit.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    The secretary of the Department of Labor and Regulation shall promulgate rules, pursuant to chapter 1-26, establishing annual timelines for the notifications, verifications, and other procedures required of the insurance companies seeking a tax credit pursuant to section 2 of this Act.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    The division shall provide a standardized format for a receipt to be issued by the scholarship granting organization to a company to indicate the value of a contribution received. The division shall require a company to provide a copy of this receipt when claiming the tax credit established in this Act. Prior to accepting any contribution from any company, the scholarship granting organization shall first verify with the division that the limit on the total amount of tax credits allowed pursuant to section 3 of this Act has not yet been reached for the current fiscal year. The scholarship granting organization shall report to the division the name of the insurance company,

date, and amount for each contribution received from an insurance company seeking a tax credit pursuant to section 2 of this Act within thirty days of the date of the contribution.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    The division shall provide a standardized format for the scholarship granting organization to report the information in subdivision (10) of section 4 of this Act. Any information provided relating to the identity of a taxpayer that provides an eligible contribution pursuant to this Act shall remain confidential unless the company deems otherwise.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    The auditor general may conduct either a financial review or audit of the scholarship granting organization if it possesses evidence of fraud.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    The tax credit provided for in this Act may be first claimed on the annual premium tax return filed in 2017.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    The program established pursuant to this Act does not expand the regulatory authority of the state or the state's officers to impose additional regulation of nonpublic schools beyond those necessary to enforce the requirements of this Act.

     Signed March 25, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\103.wpd
CHAPTER 103

(SB 92)

Appropriation for a math initiative
at the School of Mines and Technology.


        ENTITLED, An Act to continue a math pilot project at the South Dakota School of Mines and Technology, to make an appropriation therefor, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. Not withstanding §§ 13-13-88 and 13-13-89, there is hereby appropriated the sum of two hundred fifty thousand dollars ($250,000), or so much thereof as may be necessary, in other fund expenditure authority, to the South Dakota School of Mines and Technology, payable from funds derived from the workforce education fund created in § 13-13-88, for the continuation of the 2015 math pilot project at the South Dakota School of Mines and Technology.

    Section 2. The president of the School of Mines and Technology shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing

public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 16, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\103.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\104.wpd
CHAPTER 104

(SB 11)

Appropriation to the Board of Regents
to purchase land in Madison.


        ENTITLED, An Act to authorize the Board of Regents to purchase land from the Dakota State University Foundation for the use and benefit of Dakota State University in Madison, to make an appropriation therefor, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. The Board of Regents may purchase from the Dakota State University Foundation for the use and benefit of Dakota State University the following described land:

    Lot 6 and Lot 7 and the North Half (N ½) of the vacated portion of 7th Street lying parallel and adjacent to the South side of Lot 7, all in Block 1, Willard's Addition to Madison, Lake County, South Dakota and known to all as the East Campus Parking Lot.

    Section 2. There is hereby appropriated the sum of forty thousand dollars ($40,000) in other fund expenditure authority, or so much thereof as may be necessary, to the Board of Regents to purchase the real property authorized in section 1 of this Act, payable from other funds derived from administrative overhead.

    Section 3. The executive director of the Board of Regents shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 4. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 5. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 18, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\104.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\105.wpd
CHAPTER 105

(SB 12)

Authorization to Board of Regents
to sell land in Brookings County.


        ENTITLED, An Act to authorize the Board of Regents to sell certain extraneous real property in

Brookings County and to deposit the proceeds with the state treasurer to be credited to a fund designated as the real property acquisition and capital improvement fund for South Dakota State University.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. The Board of Regents may sell, at a minimum of its appraised value in accordance with §§ 5-2-2.1 and 5-2-2.2, all or any portion of the following real estate located at the Northwest Quarter (NW1/4) of Section Twenty (20), Township One Hundred Ten (110) North, Range Forty-Nine (49) West of the 5th P.M. Brookings County, South Dakota, less Lot H-1 containing 17.08 acres, more or less, being an easement for highway purposes only with reversionary rights, and any related personal property and improvements located on the property.

    Section 2. The proceeds from the sale authorized by this Act shall be deposited, in accordance with §§ 5-2-2.1 and 5-2-2.3, with the state treasurer, invested by the State Investment Council, and the earnings therefrom shall be credited to the support of South Dakota State University and its authorized real and personal property acquisitions and capital improvements, as provided by law.

    Section 3. Notwithstanding the provisions of this Act or any other law to the contrary, the Board of Regents and the Governor may direct the commissioner of school and public lands to sell any property described in section 1 of this Act to any municipality with corporate limits within ten miles of the location of the property. The sale may be made without first offering the property for sale to the public. The sale price shall be at least the appraised value as determined by the board of appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed February 23, 2016

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\105.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\106.wpd
CHAPTER 106

(HB 1007)

Agricultural land production value research.


        ENTITLED, An Act to make an appropriation to revise and update the data and methods used to determine the agricultural land production capacity and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of one hundred seventy-five thousand dollars ($175,000), or so much thereof as may be necessary, to the Department of Revenue for the purpose of contracting with South Dakota State University to conduct research concerning the methods used to determine agricultural land production capacity and to update the data used in the soil tables.

    Section 2. The secretary of the Department of Revenue shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated by June 30, 2018, shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and

effect from and after its passage and approval.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\106.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\107.wpd
CHAPTER 107

(HB 1016)

Appropriation revised for certain improvements at
South Dakota State University and the University of South Dakota.


        ENTITLED, An Act to revise the authority granted to the Building Authority and to the Board of Regents to construct certain improvements at South Dakota State University in Brookings and the University of South Dakota in Vermillion.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That subdivision (9) of section 3 of chapter 107 of the 2012 Session Laws be amended to read:

            (9)    South Dakota State University Performing Arts Center expansion, not to exceed one hundred fifteen thousand gross square feet, for an estimated construction cost of thirty-three million one hundred three thousand seven hundred thirteen forty-eight million three hundred ninety-one thousand eight hundred seven dollars, of which no more than thirteen million dollars may be financed through the issuance of revenue bonds, with the remaining funds being drawn from donations, federal funds, or other funds as provided in section 8 of this Act;

    Section 2. That subdivision (11) of section 3 of chapter 107 of the 2012 Session Laws be amended to read:

            (11)    University of South Dakota science, health and research laboratory building, not to exceed eighty thousand gross square feet, for an estimated construction cost of thirty fifteen million dollars, of which no more than eight nine million six hundred ninety-five dollars may be financed through the issuance of revenue bonds, with the remaining funds being drawn from donations, federal funds, or other funds as provided in section 8 of this Act;

    Section 3. That subdivision (12) of section 3 of chapter 107 of the 2012 Session Laws be amended to read:

            (12)    University of South Dakota Patterson Hall renovation, for an estimated construction cost of six five million five hundred thousand dollars to be financed through the issuance of revenue bonds; and

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\107.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\108.wpd
CHAPTER 108

(SB 9)

Native American achievement schools grant program appropriation.


        ENTITLED, An Act to make an appropriation to fund the Native American achievement schools grant program and paraprofessional tuition assistance scholarship program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated the sum of two million two hundred thousand dollars ($2,200,000), or so much thereof as may be necessary, in other fund expenditure authority to the Department of Education, payable from funds derived from the workforce education fund created in § 13-13-88, for the purposes of funding the Native American achievement schools grant program and the paraprofessional tuition assistance scholarship program.

    Section 2. The secretary of the Department of Education shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\108.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\109.wpd
CHAPTER 109

(HB 1203)

An appropriation to pay off bonds and make certain other changes
necessary to effectuate a tuition freeze.


        ENTITLED, An Act to pay off bonds and make certain other changes necessary to effectuate a tuition freeze by the Board of Regents and the technical institutes, to make an appropriation therefor, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of thirty-five million five hundred five thousand four hundred fourteen dollars ($35,505,414), or so much thereof as may be necessary, to the Bureau of Finance and Management to be transferred to the South Dakota Building Authority public building fund for the purposes of paying or prepaying lease rental obligations.

    Section 2. The funds appropriated in section 1 of this Act shall be used to pay or prepay lease rental and associated fees in the amount of thirty-five million five hundred five thousand four hundred fourteen dollars to the South Dakota Building Authority relating to the leases between the South Dakota Building Authority and the Board of Regents relating to the costs of the science facilities and laboratories at various public universities supported by rental paid from the higher education facilities fund and financed by forty-one million ten thousand dollars original principal amount of the South Dakota Building Authority's series 2008 bonds.


    Section 3. There is hereby appropriated from the general fund the sum of six million eight hundred six thousand six hundred seventy dollars ($6,806,670), or so much thereof as may be necessary, to the Bureau of Finance and Management to be used to make lease payments through the tuition subaccount within the South Dakota Health and Educational Facilities Authority for the purposes of paying or prepaying lease rental obligations.

    Section 4. The funds appropriated in section 3 of this Act shall be used to pay or prepay lease rental and associated fees in the amounts specified below to the South Dakota Health and Educational Facilities Authority relating to the leases between the South Dakota Health and Educational Facilities Authority, the State Board of Education and the technical institutes and the related real or personal property financed by the South Dakota Health and Educational Facilities Authority all as described as follows:

            (1)    Lease rentals and fees in an estimated amount of five million two hundred sixty-two thousand nine hundred seventy-two dollars in connection with the leases between the South Dakota Health and Educational Facilities Authority, the State Board of Education and the technical institutes relating to facilities at Western Dakota Technical Institute and Southeast Technical Institute financed by proceeds of the South Dakota Health and Educational Facilities Authority's series 2007 bonds; and

            (2)    Lease rentals and fees in an estimated amount of one million five hundred forty-three thousand six hundred ninety-eight dollars in connection with the lease between the South Dakota Health and Educational Facilities Authority, the State Board of Education and the technical institutes relating to facilities at Lake Area Technical Institute, Mitchell Technical Institute, Western Dakota Technical Institute, and Southeast Technical Institute financed by proceeds of the South Dakota Health and Educational Facilities Authority's series 2014A bonds.

    Section 5. The South Dakota Building Authority and the South Dakota Health and Educational Facilities Authority may enter into an irrevocable escrow agreement to provide for the defeasance and payment of the series 2007 bonds, the series 2008 bonds, and the series 2014A bonds issued to finance the costs of the buildings and other real or personal property described in sections 2 and 4 of this Act and to enter into such other arrangements to pay or prepay any governmental expenses permissible under chapters 5-12 and 1-16A. The South Dakota Building Authority and the South Dakota Health and Educational Facilities Authority may each contract with a third party for the purposes of this section. Upon determination by the South Dakota Building Authority or the South Dakota Health and Educational Facilities Authority of the amounts necessary for payment or prepayment of the leases or bonds and other governmental expenses described in this Act and any associated fees and expenses, any remaining funds shall be transferred to the general fund at the end of the fiscal year in which the determination is made by the South Dakota Building Authority or the South Dakota Health and Educational Facilities Authority, respectively.

    Section 6. The commissioner of the Bureau of Finance and Management shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 7. The sum of twenty-seven million four hundred twenty-six thousand six hundred forty-three dollars shall be transferred from the budget reserve fund to the general fund.

    Section 8. That § 13-51-1.1 be amended to read:

    13-51-1.1. Notwithstanding any other provisions of law, the Board of Regents may enter into a lease agreement with the Sioux Falls public school district for the lease of a site to be used only for the delivery of public higher education programs and a lease agreement with the Capital University Center Foundation and Advisory Board for the lease of a site in Pierre, South Dakota, to be used for the delivery of public higher education programs. All such academic programs shall be directly provided by the following institutions:



            (1)    University of South Dakota;

            (2)    South Dakota State University;

            (3)    South Dakota School of Mines and Technology;

            (4)    Northern State University;

            (5)    Black Hills State University; or

            (6)    Dakota State University.

    No postsecondary degrees may be awarded or conferred except by the above institutions.

    The board may use funds annually appropriated by the Legislature from the higher education facilities fund, created in § 13-51-2, to make payments therefor.

    Section 9. That § 13-51-2 be amended to read:

    13-51-2. There is continued an educational facilities fund in the state treasury from which the Board of Regents may make expenditures, relating only to institutions of higher education under its jurisdiction, to:

            (1)    Make lease payments to the South Dakota Building Authority for projects authorized to be paid out of that fund by the Legislature;

            (2)    Maintain and repair existing facilities in amounts as may from time to time be authorized by the Legislature;

            (3)    Maintain and repair the Sanford School of Medicine building occupied under capital lease located on Lot 9 except the North 14 Feet, Lots 10 through 14, the East 7.7 Feet of Lots 15, 18 and 19, and the East 7.7 Feet except the North 14 Feet of Lot 20, Block 2, Hayward Investment Company Subdivision of Block A of Hayward's Addition, and the West one-half of the vacated portion of Euclid Avenue adjacent to Lot 9 except the North 14 Feet and Lots 10, 11 and 12, Block 2, Hayward Investment Company Subdivision of Block A of Hayward's Addition to the City of Sioux Falls, Minnehaha County, South Dakota;

            (4)    Make rent payments from higher education facilities funds, appropriated through the general appropriation act for such purposes, to other private or public parties for educational facilities in accordance with § 13-51-1 as necessary to the proper and efficient delivery of instruction; and

            (5)    Build and equip new facilities as may from time to time be authorized by the Legislature.

    No funding may be provided in any year for subdivision (4) or (5) of this section until the level of annual appropriations reaches three fifteen million dollars for subdivision (2) of this section. Authorizations for new lease payments, new construction, reconstruction, and renovation are restricted to and shall may not exceed the amount of higher education facilities funds in excess of the sum of existing lease payments to the South Dakota Building Authority plus three fifteen million dollars for maintenance and repair.

    Section 10. That § 13-53-15 be amended to read:

    13-53-15. The state treasurer shall receive and receipt all moneys money arising from any of the educational institutions under the control of the Board of Regents. Moneys Any tuition collected pursuant to § 13-53-6 shall be deposited eighty eighty-eight and one-half percent into the tuition and

fees fund which is hereby created and continuously appropriated to the Board of Regents and twenty eleven and one-half percent into the higher education facilities fund. Moneys Any money collected from interest on permanent funds or from lease income from lands granted to the state for the use and benefit of each institution shall be deposited into the Board of Regents endowed institution interest and income fund created by § 5-10-1.1.

    Section 11. That § 13-53-15.3 be amended to read:

    13-53-15.3. Notwithstanding the provisions of § 13-53-15, medical school deposits into the higher education facilities fund shall equal twenty eleven and one-half percent of the medical school tuition and fee revenue minus one hundred seventy-five thousand dollars.

    The provisions of this section are retroactive from July 1, 1994. Any transaction that was consistent with § 13-53-15 is hereby ratified.

    Section 12. That § 33-6-5 be amended to read:

    33-6-5. Any member of the National Guard of the State of South Dakota is, upon compliance with all the requirements for admission and subject to the provisions of § 33-6-7, entitled to a benefit as prescribed by this section and § 33-6-5.1 to attend and pursue any undergraduate course or courses in any state educational institution under the control and management of the Board of Regents. Any resident is entitled to a benefit of fifty percent of the in-state resident tuition to be paid or otherwise credited by the Board of Regents. Any nonresident is entitled to a benefit of fifty percent of the in-state resident tuition to be paid to the institution by the Department of the Military or otherwise credited by the Board of Regents. However, the state benefit is paid after applying the federal tuition benefit. The total federal and state benefit may not exceed one hundred percent of the tuition cost. The benefits established under §§ 33-6-5 to 33-6-8, inclusive, may not exceed one hundred twenty-eight credit hours towards a baccalaureate degree.

    Section 13. That § 33-6-5.1 be amended to read:

    33-6-5.1. Any member of the National Guard of the State of South Dakota is, upon compliance with all the requirements for admission and subject to the provisions of § 33-6-7, entitled to a benefit as prescribed by §§ 33-6-5.1 and 33-6-5.3. Any member of the National Guard of the State of South Dakota who is enrolled in a program leading toward a graduate degree in any state educational institution under the control and management of the Board of Regents, including institutions or courses not subsidized by the general fund, is entitled to a benefit of fifty percent of the in-state resident graduate tuition to be paid to the institution by the Department of the Military or otherwise credited by the Board of Regents. However, the state benefit is paid after applying the federal tuition benefit. The total federal and state benefit may not exceed one hundred percent of the tuition cost. The benefit provided by §§ 33-6-5.1 and 33-6-5.2 may not exceed thirty-two credit hours toward a graduate degree.

    Section 14. That § 33-6-5.2 be amended to read:

    33-6-5.2. Notwithstanding the provisions of § 13-55-23, eligible National Guard members enrolled in undergraduate courses under the control and management of the Board of Regents not subsidized by the general fund are entitled to a benefit of fifty percent of the in-state resident tuition to be paid to the institution by the Department of the Military or otherwise credited by the Board of Regents. However, the state benefit is paid after applying the federal tuition benefit. The total federal and state benefit may not exceed one hundred percent of the tuition cost.

    Section 15. That § 33-6-5.3 be amended to read:

    33-6-5.3. Notwithstanding the provisions of § 13-55-23, eligible National Guard members enrolled in graduate courses under the control and management of the Board of Regents not

subsidized by the general fund are entitled to a benefit of fifty percent of the in-state resident tuition to be paid to the institution by the Department of the Military or otherwise credited by the Board of Regents. However, the state benefit is paid after applying the federal tuition benefit. The total federal and state benefit may not exceed one hundred percent of the tuition cost.

    Section 16. That § 33-6-6 be amended to read:

    33-6-6. Any member of the National Guard of the State of South Dakota, who is a resident of the State of South Dakota and who possesses the entrance requirements for admission to any postsecondary vocational program, is entitled to complete one program of study approved by the State Board of Education in any state postsecondary vocational education institution upon payment of fifty percent of the tuition charges. The remaining tuition shall be paid or otherwise credited by the Department of the Military out of funds appropriated for the purpose of paying fifty percent of the tuition postsecondary vocational education institution. However, the state benefit is paid after applying the federal tuition benefit. The total federal and state benefit may not exceed one hundred percent of the tuition cost.

    Section 17. That § 1-16A-96 be amended to read:

    1-16A-96. Beginning in fiscal year 2015 2017, lease payments made to the authority pursuant to lease purchase agreements with the Western Dakota Technical Institute, the Southeast Technical Institute, the Lake Area Technical Institute, the Mitchell Technical Institute, or the South Dakota Board of Education under the authority of chapter 13-39 shall be paid in part from an appropriation to be made by the Legislature in an amount that is equal to or greater than fifty percent of the technical institute facility fee administered by the Department of Education that is dedicated to twenty-seven percent of the current year lease purchase agreement payments.

    No provision of this chapter is deemed to adversely affect any of the covenants or other agreements of the South Dakota Board of Education or the secretary of education in the lease purchase agreement with the authority dated August 1, 1988, as amended and supplemented, for the benefit of the holders of any bonds issued by the authority, and such covenants and agreements in the lease purchase agreement dated August 1, 1988, as amended and supplemented, are hereby ratified and confirmed.

    Section 18. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 19. Whereas, sections 1 to 11, inclusive, of this Act are necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and sections 1 to 11, inclusive, of this Act shall be in full force and effect from and after its passage and approval.

     Signed March 21, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\109.wpd



CIVIL PROCEDURE

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\110.wpd
CHAPTER 110

(HB 1135)

Venue for actions arising out of real property lease agreements.


        ENTITLED, An Act to establish venue for certain actions arising out of real property lease agreements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 15-5 be amended by adding a NEW SECTION to read:

    Any breach of contract action between a lessor and a lessee that arises out of a real property lease agreement shall be tried in the county in which any portion of the real property subject to the lease agreement is located.

    Section 2. That § 15-5-6 be amended to read:

    15-5-6. In all other cases, except as provided in § 15-5-7 or, 15-5-8, or in section 1 of this Act, the action shall be tried in the county in which the defendant or defendants, or any of them, shall reside at the commencement of the action. However, if none of the defendants reside in the state, the action may be tried in any county which the plaintiff shall designate in his complaint, subject, however, to the power of the court to change the place of trial in the cases provided by statute. In the second event, the jurors' fees and mileage payments shall be paid by the parties in such proportions as the court may order. If the parties stipulate to a venue which is not specified in §§ 15-5-1 to 15-5-5, inclusive, the first sentence of this section, § 15-5-7 or, 15-5-8, or in section 1 of this Act, the stipulation must be approved by a court order which also provides for the payment of jurors' fees and mileage payments by the parties.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\110.wpd

COURTS AND JUDICIARY

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\111.wpd
CHAPTER 111

(SB 75)

Appropriation and grant program
for adult community residential services.


        ENTITLED, An Act to establish a grant program for adult community residential services designed to reduce the risk of recidivism, to provide a report to the Legislature, to make an appropriation

therefor, and declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    There is hereby established the alternative care program to be administered by the Unified Judicial System. The Unified Judicial System shall award grants to nonprofit entities within the state of South Dakota that provide indigent adults with extended residential alternative care programs designed to reduce the risk of recidivism. The grants shall be awarded for room and board costs for South Dakota residents of the program with a maximum award of thirty dollars per day per resident. Any grant award shall be distributed in quarterly installments.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    The Unified Judicial System shall initiate a request for proposal and publicize the availability of the grant funding and any procedures for obtaining grants pursuant to section 1 of this Act.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    The recipient of any such grant shall prepare a report containing information on the results and outcomes for program participants including: completion rates, termination rates, graduation rates, and recidivism data. The report shall be submitted to the Legislature no later than November 15, 2017.

    Section 4. There is hereby appropriated from the general fund the sum of two hundred thousand dollars ($200,000), or so much thereof as may be necessary, to the Unified Judicial System to fund the grant program established in section 1 of this Act. For administration of the program, the Unified Judicial System shall retain four thousand dollars of the appropriated amount.

    Section 5. The Chief Justice of the Unified Judicial System shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 6. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 7. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\111.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\112.wpd
CHAPTER 112

(HB 1183)

Magistrate courts may issue protection orders.


        ENTITLED, An Act to revise certain provisions regarding the jurisdiction of magistrate courts to issue protection orders.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 16-12B-13 be amended to read:



    16-12B-13. A magistrate court with a magistrate judge presiding has concurrent jurisdiction with the circuit courts to try and determine all civil actions, if the debt, damage, claim, or value of the property involved does not exceed twelve thousand dollars. A magistrate court with a magistrate judge presiding has concurrent jurisdiction with the circuit courts to try and determine any action for a protective or restraining order or injunctive relief pursuant to chapter 22-19A or 25-10. When the action is one for protection from domestic abuse, a magistrate judge may not issue an ex parte protection order pursuant to § 25-10-6, or try any petition, which calls for either the award of temporary custody or establishment of temporary visitation with regards to visitation of a minor child of the parties or that establishes temporary support for a minor child of the parties or a spouse. Any magistrate court with a magistrate judge presiding has jurisdiction in small claims proceedings, if the debt, damage, claim, or value of the property involved does not exceed twelve thousand dollars.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\112.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\113.wpd
CHAPTER 113

(SB 55)

HOPE probation program expanded.


        ENTITLED, An Act to revise certain provisions relating to the HOPE probation program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 16-22-8 be amended to read:

    16-22-8. The Supreme Court is authorized to establish two South Dakota HOPE court pilot probation programs in any court that has jurisdiction over criminal cases.

    Section 2. That § 16-22-9 be amended to read:

    16-22-9. The Supreme Court shall establish rules pursuant to § 16-3-1 for such pilot the programs consistent with the following components, modeled after the national HOPE court initiative:

            (1)    Involvement and commitment of criminal justice officials including judges, state's attorneys, defense attorneys, law enforcement, court services officers, and treatment providers;

            (2)    Eligibility criteria focused on offenders with a high risk to reoffend, without consideration of the current offense;

            (3)    Judicial involvement in setting and communicating to the probationer program expectations and consequences for noncompliance;

            (4)    Frequent, effective, and randomized drug and or alcohol testing;

            (5)    Swift, certain, and proportional sanctions for noncompliance with program conditions;

            (6)    Swift and certain warrant service for absconding; and

            (7)    Compilation, evaluation, and publicly reported program results.

    Section 3. That § 16-22-10 be amended to read:

    16-22-10. Each pilot program shall be evaluated for the impact on public safety outcomes. The Unified Judicial System shall report performance measures for the pilot programs semiannually to the oversight council.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\113.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\114.wpd
CHAPTER 114

(HB 1201)

Appropriate money for teen court.


        ENTITLED, An Act to revise the General Appropriations Act for fiscal year 2016, make an appropriation for teen court programs in South Dakota, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That section 17 of chapter 31 of the 2015 Session Laws be amended to read:

DEPARTMENT OF CORRECTIONS

    (8) Juvenile Community Corrections

        Operating Expenses, General Funds, delete "$12,776,370" and insert "$12,526,370"

Adjust all totals accordingly.

    Section 2. There is hereby appropriated from the general fund the sum of two hundred fifty thousand dollars ($250,000), or so much thereof as may be necessary, to the teen court grant program fund established in § 1-10-6 for the purpose of awarding grants to teen court programs in South Dakota.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated by June 30, 2017, shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\114.wpd



PERSONAL RIGHTS AND OBLIGATIONS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\115.wpd
CHAPTER 115

(SB 80)

Liability limited for hosts of fishing tournaments.


        ENTITLED, An Act to limit certain liability for hosts of fishing tournaments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Fishing," the riding, driving, or being a passenger in a boat or watercraft used in a fishing tournament, or any person assisting a participant or show management. The term does not include being a spectator at a fishing tournament;

            (2)    "Fishing tournament," an organized competition among fishermen, usually as a series of competition events centered around or on a specific body of water, with specific rules applying to each event;

            (3)    "Fishing tournament sponsor," any individual, group, club, partnership, or corporation, whether or not the sponsor is operating for profit or nonprofit, that supports, organizes, or provides the facilities for a fishing tournament;

            (4)    "Fishing professional," any person engaged for compensation in instructing a participant or renting to a participant a boat, watercraft or other equipment for the purpose of fishing in a fishing tournament;

            (5)    "Inherent risks of fishing," those dangers or conditions that are an integral part of fishing, including:

            (a)    The unpredictability of the weather and environment in the area the fishing occurs;

            (b)    Certain hazards such as surface and subsurface conditions of the body of water at or on which the fishing occurs;

            (c)    Collisions with other boats, watercrafts, vehicles, ice shacks, or objects;

            (d)    If engaged in a fishing tournament, the potential of a participant to act in a negligent manner that may contribute to injury to the participant or others, such as failing to maintain control over the boat or watercraft or not acting within the participant's ability;

            (6)    "Participant," any person, whether amateur or professional, who engages in a fishing tournament, whether or not a fee is paid to participate in a fishing tournament.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    No fishing tournament sponsor is liable for an injury to, or the death of, a participant resulting from the inherent risks of fishing.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Nothing in this Act prevents or limits the liability of a fishing tournament sponsor, a fishing professional, or any other person if the fishing tournament sponsor, fishing professional, or other person:

            (1)    Provides the equipment, boat, or watercraft, and knew or should have known that the equipment, boat, or watercraft was faulty, and the equipment, boat, or watercraft was faulty to the extent that it causes the injury; or provides the equipment, boat, or watercraft and fails to make reasonable and prudent efforts to determine the proper operating licensure and ability of the participant to engage safely in the fishing tournament and determine the ability of the participant to safely manage the equipment, boat, or watercraft based on the participant's representations of the participant's ability;

            (2)    Owns, leases, rents, or otherwise is in lawful possession and control of the land or facilities upon which the participant sustains any injury because of a dangerous latent condition that was known to the fishing tournament sponsor, fishing professional, or person and for which warning signs had not been conspicuously posted;

            (3)    Commits an act or omission that constitutes willful or wanton disregard for the safety of the participant and that causes the injury; or

            (4)    Intentionally injures the participant.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Nothing in this Act prevents or limits the liability of any fishing tournament sponsor or fishing professional for any injury involving a participant if the recovery is made pursuant to warranty or trespass.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    Each fishing professional and fishing tournament sponsor shall post and maintain the following sign:

    WARNING: Under South Dakota law, no fishing tournament sponsor or fishing professional is liable for an injury to, or the death of, a participant resulting from the inherent risks of fishing, pursuant to this Act.

    The sign shall be placed in a clearly visible location on or near boat docks, registration tables, equipment rental stations, or where a fishing professional conducts fishing activities. The warning notice shall appear on the sign in black letters, with each letter being a minimum of one inch in height. Each written contract entered into by a fishing professional for the providing of professional services, instruction, or the rental of equipment, a boat, or watercraft to a participant, whether or not the contract involves fishing activities on or off the location or site of the fishing professional's business, shall contain in clearly readable print the warning notice provided in this Act.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\115.wpd



JUDICIAL REMEDIES

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\116.wpd
CHAPTER 116

(HB 1059)

Garnishment of debts and property, procedure revised.


        ENTITLED, An Act to revise provisions related to the garnishment of debts and property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 21-18-2.1 be amended to read:

    21-18-2.1. The term, earnings, as used in this chapter means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program.

    Section 2. That § 21-18-3 be amended to read:

    21-18-3. In any action where garnishment is permitted, the plaintiff, or some person on his the plaintiff's behalf, may make an affidavit stating that he verily the plaintiff believes that some a named person, naming him, is indebted to, or has property, real or personal, in his the person's possession or under his the person's control belonging to the defendant, or either or any of the defendants in the action, naming him, and that such defendant has not no property in this state other than property subject to garnishment under this chapter sufficient to satisfy the plaintiff's demand, and that the indebtedness or property mentioned in such affidavit is, to the best of the knowledge and belief of the person making such affidavit, not by law exempt, and the amount of the claim sued upon.

    Section 3. That § 21-18-3.1 be amended to read:

    21-18-3.1. Garnishment of earnings may only be used following a prior to obtaining final judgment in the principal action is prohibited.

    Section 4. That § 21-18-7 be amended to read:

    21-18-7. The garnishee summons, affidavit, and garnishment disclosure shall be served on each of the several garnishees named, in the manner provided for service of a summons in an action or, by certified mail, or by registered mail pursuant to § 21-18-11.

    Section 5. That § 21-18-9 be amended to read:

    21-18-9. If a garnishee summons, affidavit, and garnishment disclosure is served personally or by certified mail, the garnishee shall be paid the sum of fifteen dollars to reimburse the garnishee for the expense of preparing the garnishment disclosure which sum shall be taxed as a part of plaintiff's costs. If the garnishee is not paid, the garnishment proceeding is void. The return of service of the garnishee summons shall include a statement that the sum was paid. The garnishment disclosure shall be returned to the plaintiff and filed with the court.

    Section 6. That § 21-18-10 be amended to read:


    21-18-10. The garnishee summons and affidavit shall also be served on the defendant to the action, either before or within thirty days after service on a garnishee, unless service of the summons in the action is made without the state or by publication, or by registered mail pursuant to § 21-18-11. If the defendant appears in the action by attorney, such service may be made upon such the attorney or upon the defendant.

    Section 7. That § 21-18-11 be amended to read:

    21-18-11. Such garnishee summons, affidavit, and garnishment disclosure may be served by certified mail, return receipt requested, or personally by the sheriff of the county where any garnishee or defendant may be found, or by any other person not a party to the action. The person subscribing such garnishee summons may, at his option, by an endorsement thereon fix a time for the service thereof, and the service shall then be made accordingly. The service shall be made and the same returned, with proof of the service, to the person whose name is subscribed thereto, with reasonable diligence. If, after reasonable diligence, service by certified mail or personal service by the sheriff is unsuccessful within the time period provided for in § 21-18-10, the plaintiff may file an affidavit stating that fact and may serve such garnishee summons, affidavit, and garnishment disclosure on the defendant by mailing a copy of the documents, together with a copy to the garnishee, to the defendant's last known address by registered mail. The service shall be made and the same returned, with proof of the service, to the person whose name is subscribed thereto, with reasonable diligence. The person subscribing such garnishee summons may, at his option, by an endorsement thereon fix a time for the service thereof, and the service shall then be made accordingly. The garnishee may proceed by complying with either § 21-18-32 or 21-18-33 and, by such compliance, is exonerated from any further liability to any party to the garnishment.

    Section 8. That § 21-18-12 be amended to read:

    21-18-12. From the time of the service of the summons upon the garnishee he shall stand, the garnishee is liable to the plaintiff to the amount of the property, money, credits, and effects in his the garnishee's possession or under his the garnishee's control belonging to the defendant, or in which he shall be the garnishee is interested, to the extent of his the garnishee's right or interest therein, and of all debts due or to become due to the defendant, except such as may be by law exempt from execution.

    Section 9. That § 21-18-14.1 be amended to read:

    21-18-14.1. Notwithstanding the provisions of § 21-18-14, the The plaintiff may obtain a one hundred twenty-day continuing lien on wages by garnishment. If a lien is to be obtained, the plaintiff shall mark on the caption of the garnishee summons "continuing lien" and all disclosure forms shall include the following:

    Garnishee will continue to hold withhold the nonexempt portion of the defendant's earnings as they accrue through the last payroll period ending on or before one hundred twenty days from the effective date of the garnishee summons, or until the sum held equals the amount stated in the garnishee summons, or until the employment relationship terminates, whichever first occurs.

    At the time of the expected termination of the lien, the plaintiff shall mail to garnishee an additional copy of the disclosure form upon which the garnishee within ten days shall make further disclosure.

    Section 10. That § 21-18-27.1 be amended to read:

    21-18-27.1. A garnishment disclosure form shall be served upon the garnishee. The disclosure shall be substantially in the following form:



State of South Dakota )
In ______________ Court

) ss.

County of _____________ )

_____________________

________________________________

Plaintiff

vs.

________________________________

Defendant

and Garnishment Disclosure

________________________________

Garnishee

    I am the ______________ of the garnishee and duly authorized to disclose for the garnishee.

    On the ____ day of ______________, 20_, the time of service of garnishee summons on the garnishee, there was due and owing the defendant from the garnishee the following:

            1.    Earnings. For the purposes of garnishment, "earnings" means compensation payable for personal service whether called wages, salary, commission, bonus or otherwise, and includes periodic payments pursuant to a pension or retirement program. "Earnings" does not include social security benefits or veterans' disability pension benefits, except when the benefits are subject to garnishment to enforce any order for the support of a dependent child. "Earnings" includes military retirement pay. "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required by law to be withheld (such as FICA, Medicare, social security taxes, and child support). If the garnishee summons was served upon you at a time when earnings from a prior completed pay period were owing but not paid, complete the following disclosure for earnings from both the past pay period and the current pay period.

            a.    Enter on the line below the amount of disposable earnings earned or to be earned by the defendant within the defendant's pay periods which may be subject to garnishment. ___________________________________________

            b.    Enter on the line below forty times the hourly federal minimum wage (or state minimum wage, if greater) times the number of workweeks within the defendant's pay periods which may be subject to garnishment plus twenty-five dollars per week for each dependent family member residing with the garnishment debtor other than the garnishment debtor himself or herself. When pay periods consist of other than a whole number of workweeks, each day of a pay period in excess of the number of completed workweeks shall be counted as a fraction of a workweek equal to the number of workdays divided by the number of workdays in the normal workweek.

                ___________________________________________________

            c.    Enter on the line below the difference obtained (never less than zero) when line b is subtracted from line a.

                _______________________________________

            d.    Enter on the line below twenty percent (1/5) of line a.

                _______________________

            e.    Enter on the line below the lesser of line c and line d.

                __________________

            2.    Money. Enter on the line below any amounts due and owing defendant, except earnings, from the garnishee. _________________________________________

            3.    Property. Describe on the line below any personal property, instruments or papers belonging to the defendant and in the possession of the garnishee.

                ________________________________________________________________

            4.    Setoff. Enter on the line below the amount of any setoff, defense, lien or claim which the garnishee claims against the amount set forth on lines 1(e), 2 and 3. Allege the facts by which the setoff, defense, lien or claim is claimed. (Any indebtedness to a garnishee-employer incurred by the judgment debtor within ten days prior to the receipt of the first garnishment on a debt is void and should be disregarded.) __________________________________________________________________

            5.    Adverse Interest. Enter on the line below any amounts claimed by other persons by reason of ownership or interest in the defendant's property. State the names and addresses of the persons and the nature of their claim, if known. (Any assignment of wages made by the defendant within ten days prior to the receipt of the first garnishment on a debt is void and should be disregarded.)

                 ________________________________________________________________

            6.    Enter on the line below the total of lines 4 and 5.

                ___________________________

            7.    Enter on the line below the difference obtained (never less than zero) when line 6 is subtracted from the sum of line 1(e), 2 and 3. _____________________________

            8.    Enter on the line below one hundred ten five percent of the amount of the judgment creditor's judgment which remains unpaid set forth in the Affidavit of Garnishment. ________________________________

            9.    Enter on the line below the lesser of line 7 and line 8. As garnishee, you are hereby instructed to retain this amount only if it is $10.00 $25.00 or more. The balance shall be remitted to the debtor in a timely manner.

                 __________________________________

Signature ______________________________________________________

Authorized Representative of Garnishee


______________________________________________________

Title

Subscribed and sworn to before me this ________ day of ______________, 20_.

________________________

Notary Public

    Section 11. That § 21-18-28 be amended to read:

    21-18-28. In all cases in which the State of South Dakota is made garnishee defendant, it shall not be is not necessary for the state to file a formal disclosure, but it shall be is a sufficient disclosure for the state auditor to notify the plaintiff or his the plaintiff's attorney by registered or certified mail, stating what amount, if any, is due to the principal defendant at the time of the service of summons in garnishment upon him the state auditor. It shall be is the duty of the state auditor to so notify the said plaintiff or his the plaintiff's attorney within the time for making a return in garnishment and he the state auditor shall mail a copy of such the notice to the clerk of courts of the county in which said the action was pending. No taking of issue shall be is permitted on any return or disclosure made by the state auditor as herein provided.

    Section 12. That § 21-18-34 be amended to read:

    21-18-34. The state auditor may, in his the state auditor's discretion, at any time, pay to the clerk of courts of the county in which the action is brought any moneys that may be due to the principal defendant or such the part thereof as was determined or due at the time of the service of the summons in garnishment upon the state. Upon the payment of said any money to the clerk of courts, or upon notification by registered or certified mail by the state auditor to the plaintiff or his the plaintiff's attorney of the amount, if any, due the defendant, the state auditor or any other state official and the state shall be is absolutely exonerated from all liability.

    Section 13. That § 21-18-37 be amended to read:

    21-18-37. When an adverse claimant is made a garnishee defendant by notice as provided in this chapter and sets up an affirmative claim to the fund or property involved, any of the other parties to the principal action or garnishment may answer the same within thirty days after service thereof.

    Section 14. That § 21-18-39 be amended to read:

    21-18-39. If any garnishee, except the state, having been duly is summoned, shall fail to serve his and fails to answer as required by this chapter, the court may render judgment against him the garnishee for the amount of any judgment, including costs, which the plaintiff shall recover has recovered in the principal action, together with the costs of the garnishee action.

    Section 15. That § 21-18-43 be amended to read:

    21-18-43. The garnishee may at his option defend the principal action for the defendant if the latter does not, but shall be is under no obligation so to do.

    Section 16. That § 21-18-49 be amended to read:

    21-18-49. In case of the trial of an issue between the plaintiff and any garnishee, costs shall be are awarded to the plaintiff and against the garnishee in addition to his the garnishee's liability if the plaintiff recovers more than the garnishee admitted by his the garnishee's answer; and if he the plaintiff does not, the garnishee shall recover costs of the plaintiff. In all other cases under this

chapter not expressly provided for, the court may award costs in favor of or against any party in its discretion. When no such issue is tried the costs of the garnishee action shall be taxed for the plaintiff in the principal garnishment action, if he recovers therein.

    Section 17. That § 21-18-51 be amended to read:

    21-18-51. The maximum part of the aggregate disposable earnings of a wage earner for any workweek which is subject to garnishment may not exceed the lesser of:

            (1)    Twenty percent of disposable earnings for that week;

            (2)    The amount by which disposable earnings for that week exceed forty times the federal minimum hourly wage prescribed by 29 U.S.C. 206(a)(1) as amended and in effect on July 24, 2009, or applicable state minimum wage if greater, or any equivalent multiple thereof prescribed by regulation by the secretary of labor and regulation in case of earnings for any pay period other than a week, in effect at the time the earnings are payable less twenty-five dollars per week for each dependent family member residing with the garnishment debtor other than the garnishment debtor himself or herself.

    The restrictions of subdivisions (1) and (2) do not apply in the case of any order of any court for the support of any person or any order of any court of bankruptcy under Title 11 of the United States Code.

    Section 18. That § 21-18-5 be repealed.

    Section 19. That § 21-18-14 be repealed.

    Section 20. That § 21-18-20 be repealed.

    Section 21. That § 21-18-21 be repealed.

    Section 22. That § 21-18-22 be repealed.

    Section 23. That § 21-18-45 be repealed.

     Signed February 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\116.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\117.wpd
CHAPTER 117

(HB 1153)

Allow eminent domain by mediation.


        ENTITLED, An Act to allow parties to agree to resolve an eminent domain dispute by mediation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 21-35 be amended by adding a NEW SECTION to read:

    The parties may by agreement refer a dispute that is the subject of a proceeding under this chapter for resolution by mediation using the services of a mediator selected by the parties.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\117.wpd



Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\118.wpd
CHAPTER 118

(HB 1134)

Access to property for the purpose of making surveys.


        ENTITLED, An Act to provide for access to certain property for the purpose of making surveys.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 21-35 be amended by adding a NEW SECTION to read:

    The provisions of this section only apply to a project which requires a siting permit pursuant to chapter 49-41B. Each person vested with authority to take private property for public use may cause an examination and survey to be made as necessary for its proposed facilities. The person or the person's agents and officers may enter the private property for the purpose of the examination and survey. Any person seeking to cause an examination or survey, where permission for examination or survey has been denied, shall:

            (1)    Have filed a siting permit application with the public utilities commission pursuant to § 49-41B-11;

            (2)    Give thirty days written notice, including the filing and expected dates of entry, to the owner and any tenant in possession of the private property; and

            (3)    Make a payment to the owner, or provide sufficient security for the payment, for any actual damage done to the property by the entry.

    This section does not apply to the state or its political subdivisions. This section is in addition to and not in derogation of other existing law.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\118.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\119.wpd
CHAPTER 119

(HB 1062)

An order to change the name of a minor child
without prior publication.


        ENTITLED, An Act to permit an order changing the name of a minor child without prior publication in certain instances.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 21-37 be amended by adding a NEW SECTION to read:

    The court may grant an order changing the name of a minor child without publication of notice or a hearing in open court if all of the following conditions are met:

            (1)    It appears from the pleadings that the minor child has been a resident of the county in

which the petition is filed for at least six months;

            (2)    The minor child's parents whose parental rights have not been terminated, and any other person having legal rights to custody or guardianship of the minor child, give written consent to the name change;

            (3)    The minor child, if twelve years of age or older, gives written consent to the name change; and

            (4)    It appears to the court that the name change is in the minor child's best interests.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\119.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\120.wpd
CHAPTER 120

(SB 54)

Seniors and adults with disabilities
protected from abuse, neglect, and exploitation.


        ENTITLED, An Act to adopt the Elder Abuse Task Force's statutory recommendations in order to protect South Dakota seniors and adults with disabilities from abuse, neglect, and exploitation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-46-1 be amended to read:

    22-46-1. Terms used in this chapter mean:

            (1)    "Abuse," physical harm, bodily injury, or attempt to cause physical harm or injury, or the infliction of fear of imminent physical harm or bodily injury on an elder or a disabled adult;

            (2)    "Adult with a disability," a person eighteen years of age or older who suffers from has a condition of intellectual disability, infirmities of aging as manifested by organic brain damage, advanced age, or other physical dysfunctioning to the extent that the person is unable to protect himself or herself or provide for his or her own care;

            (2)    "Caretaker," a person or entity who is entrusted with the property of an elder or adult with a disability, or who is responsible for the health or welfare of an elder or adult with a disability, and who assumes the position of trust or responsibility voluntarily, by contract, by receipt of payment, or by order of the court;

            (3)    "Elder," a person sixty-five years of age or older;

            (4)    "Emotional and psychological abuse," a caretaker's willful, malicious, and repeated infliction of:

            (a)    A sexual act or the simulation of a sexual act directed at and without the consent of the elder or adult with a disability that involves nudity or is obscene;

            (b)    Unreasonable confinement;

            (c)    Harm or damage or destruction of the property of an elder or adult with a disability, including harm to or destruction of pets; or

            (d)    Ridiculing or demeaning conduct, derogatory remarks, verbal harassment, or threats to inflict physical or emotional and psychological abuse, directed at an elder or adult with a disability;

            (5)    "Exploitation," the wrongful taking or exercising of control over property of an elder or a disabled adult with a disability with intent to defraud the elder or disabled adult with a disability; and

            (5)(6)    "Neglect," harm to an elder's or a disabled adult's the health or welfare of an elder or an adult with a disability, without reasonable medical justification, caused by the conduct of a person responsible for the elder's or disabled adult's health or welfare a caretaker, within the means available for the elder or disabled adult with a disability, including the failure to provide adequate food, clothing, shelter, or medical care; and

            (7)    "Physical abuse," physical harm, bodily injury, attempt to cause physical harm or injury, or fear of imminent physical harm or bodily injury.

    Section 2. That § 22-46-2 be amended to read:

    22-46-2. Any person who physically abuses or neglects an elder or a disabled adult adult with a disability in a manner which does not constitute aggravated assault is guilty of a Class 6 felony.

    Any person who emotionally or psychologically abuses an elder or adult with a disability is guilty of a Class 1 misdemeanor.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Terms used in sections 3 to 20, inclusive, of this Act mean, unless the context otherwise requires:

            (1)    "Attorney in fact," an agent under a power of attorney pursuant to chapter 59-2 or an attorney in fact under a durable power of attorney pursuant to § 59-7-2.1;

            (2)    "Caretaker," a related or nonrelated person who has the responsibility for the health or welfare of a vulnerable adult as a result of assuming the responsibility voluntarily, by contract, by receipt of payment for care, or by order of the court;

            (3)    "Conservator," as defined in subdivision 29A-5-102(2);

            (4)    "Vulnerable adult abuse," any of the following:

            (a)    Physical abuse as defined in subdivision (7) of section 1 of this Act;

            (b)    Emotional and psychological abuse as defined in subdivision (4) of section 1 of this Act;

            (c)    Neglect as defined in subdivision (6) of section 1 of this Act and § 22-46-1.1; or

            (d)    Financial exploitation;

            (5)    "Family or household member," a spouse, a person cohabiting with the vulnerable adult, a parent, or a person related to the vulnerable adult by consanguinity or affinity, but does not include children of the vulnerable adult who are less than eighteen years of age;

            (6)    "Fiduciary," a person or entity with the legal responsibility to make decisions on behalf of and for the benefit of a vulnerable adult and to act in good faith and with fairness. The term, fiduciary, includes an attorney in fact, a guardian, or a conservator;

            (7)    "Financial exploitation," exploitation as defined in subdivision (5) of section 1 of this Act when committed by a person who stands in a position of trust or confidence;

            (8)    "Guardian," as defined in subdivision 29A-5-102(4);

            (9)    "Peace officer," as defined in subdivision 23A-45-9(13);

            (10)    "Petitioner," a vulnerable adult who files a petition pursuant to sections 3 to 20, inclusive, of this Act, and includes a substitute petitioner who files a petition on behalf of a vulnerable adult pursuant to sections 3 to 20, inclusive, of this Act;

            (11)    "Present danger of vulnerable adult abuse," a situation in which the respondent has recently threatened the vulnerable adult with initial or additional abuse or neglect or the potential for misappropriation, misuse, or removal of the funds, benefits, property, resources, belongings, or assets of the vulnerable adult combined with reasonable grounds to believe that abuse, neglect, or exploitation is likely to occur;

            (12)    "Pro se," a person proceeding on the person's own behalf without legal representation;

            (13)    "Stands in a position of trust or confidence," the person has any of the following relationships relative to the vulnerable adult:

            (a)    Is a parent, spouse, adult child, or other relative by consanguinity or affinity of the vulnerable adult;

            (b)    Is a caretaker for the vulnerable adult; or

            (c)    Is a person who is in a confidential relationship with the vulnerable adult. A confidential relationship does not include a legal, fiduciary, or ordinary commercial or transactional relationship the vulnerable adult may have with a bank incorporated pursuant to the provisions of any state or federal law; any savings and loan association or savings bank incorporated pursuant to the provisions of any state or federal law; any credit union organized pursuant to the provisions of any state or federal law; any attorney licensed to practice law in this state; or any agent, agency, or company regulated under title 58 or chapter 36-21A;

            (14)    "Substitute petitioner," a family or household member, guardian, conservator, attorney in fact, or guardian ad litem for a vulnerable adult, or other interested person who files a petition pursuant to sections 3 to 20, inclusive, of this Act; and

            (15)    "Vulnerable adult," a person sixty-five years of age or older who is unable to protect himself or herself from abuse as a result of age or a mental or physical condition, or an adult with a disability as defined in section 1 of this Act.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    A vulnerable adult or a substitute petitioner may seek relief from vulnerable adult abuse by filing a petition and affidavit in the circuit court or in a magistrate court with a magistrate judge presiding. Venue is where either party resides. The petition and affidavit shall include all of the following:

            (1)    The name of the vulnerable adult and the name and address of the vulnerable adult's attorney, if any. If the vulnerable adult is proceeding pro se, the petition shall include a

mailing address for the vulnerable adult;

            (2)    The name of the substitute petitioner if the petition is being filed on behalf of a vulnerable adult, and the name and address of the attorney of the substitute petitioner. If the substitute petitioner is proceeding pro se, the petition shall include a mailing address for the substitute petitioner;

            (3)    The name and address, if known, of the respondent;

            (4)    The relationship of the vulnerable adult to the respondent;

            (5)    The nature of the alleged vulnerable adult abuse, including specific facts and circumstances of the abuse;

            (6)    The name and age of any other individual whose welfare may be affected; and

            (7)    The desired relief, including a request for temporary or emergency orders. A petition for relief may be made whether or not there is a pending lawsuit, complaint, petition, or other action between the parties. However, if there is any other lawsuit, complaint, petition, or other action pending between the parties, any new petition made pursuant to this section shall be made to the judge previously assigned to the pending lawsuit, petition, or other action, unless good cause is shown for the assignment of a different judge.

    If a petition for a protection order alleging the existence of vulnerable adult abuse is filed with the court pursuant to this section and if the court, upon an initial review, determines that the allegations do not support the existence of vulnerable adult abuse, but that the allegations do support the existence of stalking or physical injury pursuant to § 22-19A-8 or domestic abuse pursuant to § 25-10-3, the court may hear and act upon the petition as though the petition had been filed under § 22-19A-8 or § 25-10-3 and subject to the provisions of the respective chapters.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    If an affidavit filed with a petition under section 4 of this Act alleges that the vulnerable adult is in present danger of vulnerable adult abuse before an adverse party or his or her attorney can be heard in opposition, the court may grant an ex parte temporary protection order pending a full hearing and grant relief as the court deems proper, including an order:

            (1)    Restraining any person from committing vulnerable adult abuse; and

            (2)    Excluding any person from the dwelling or the residence of the vulnerable adult.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    If a substitute petitioner files a petition pursuant to section 4 of this Act on behalf of a vulnerable adult, the vulnerable adult retains the right to all of the following:

            (1)    To contact and retain counsel;

            (2)    To have access to personal records;

            (3)    To file objections to the protection order;

            (4)    To request a hearing on the petition; and

            (5)    To present evidence and cross-examine witnesses at the hearing.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    By July 1, 2016, the Unified Judicial System shall prescribe standard forms to be used by a vulnerable adult or substitute petitioner seeking a protection order by proceeding pro se in an action pursuant to sections 3 to 20, inclusive, of this Act.

    The clerk of the circuit court shall furnish the required forms to any person seeking a protection order through pro se proceedings pursuant to sections 3 to 20, inclusive, of this Act.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    Pursuant to § 15-6-17(c), the court may on its own motion or on the motion of a party appoint a guardian ad litem for a vulnerable adult if justice requires. The vulnerable adult's attorney may not also serve as the guardian ad litem.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    Upon receipt of the petition, if sufficient grounds are alleged for relief, the court shall order a hearing which shall be held not later than thirty days from the date of the order unless the court grants a continuance for good cause. Personal service of the petition, affidavit, and notice for hearing shall be made on the respondent not less than five days prior to the hearing.

    Upon application of a party, the court shall issue subpoenas requiring attendance and testimony of witnesses and production of papers.

    The court shall exercise its discretion in a manner that protects the vulnerable adult from traumatic confrontation with the respondent.

    Hearings shall be recorded.

    Upon application, notice to all parties, and hearing, the court may modify the terms of an existing protection order.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    An ex parte temporary protection order is effective for a period of thirty days except as provided in section 11 of this Act unless the court grants a continuance for good cause. No continuance may exceed thirty days unless the court finds good cause for the additional continuance and:

            (1)    The parties stipulate to an additional continuance; or

            (2)    The court finds that law enforcement is unable to locate the respondent for purposes of service of the ex parte protection order.

If a continuance is granted, the court by order shall extend the ex parte temporary protection order until the rescheduled hearing date. The respondent shall be personally served with a copy of the ex parte order along with a copy of the petition, affidavit, and notice of the date set for the hearing. The ex parte order shall be served without delay under the circumstances of the case including service of the ex parte order on a Sunday or holiday. The law enforcement agency serving the order shall notify the petitioner by telephone or written correspondence when the order is served if the petitioner has provided to the law enforcement agency either a telephone number or address, or both, where the petitioner may be contacted. The law enforcement agency and any officer of the law enforcement agency is immune from civil and criminal liability if the agency or the officer makes a good faith attempt to notify the petitioner in a manner consistent with the provisions of this section.

    Section 11. That the code be amended by adding a NEW SECTION to read:



    If an ex parte temporary protection order is in effect and the court issues a protection order pursuant to sections 13 to 20, inclusive, of this Act, the ex parte temporary protection order remains effective until the order issued pursuant to sections 13 to 20, inclusive, of this Act is served on the respondent.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    The showing required pursuant to section 13 of this Act may be made by any of the following:

            (1)    The vulnerable adult;

            (2)    The guardian, conservator, attorney in fact, or guardian ad litem of the vulnerable adult;

            (3)    A witness to the vulnerable adult abuse; or

            (4)    An adult protective services worker who has conducted an investigation.

    Section 13. That the code be amended by adding a NEW SECTION to read:

    Upon a finding by a preponderance of the evidence that vulnerable adult abuse has occurred, the court may order any of the following:

            (1)    That the respondent be required to move from the residence of the vulnerable adult if both the vulnerable adult and the respondent are titleholders or contract holders of record of the real property, are named as tenants in the rental agreement concerning the use and occupancy of the dwelling unit, are living in the same residence, or are married to each other;

            (2)    That the respondent provide suitable alternative housing for the vulnerable adult;

            (3)    That a peace officer accompany the party who is leaving or has left the party's residence to remove essential personal effects of the party;

            (4)    That the respondent be restrained from vulnerable adult abuse;

            (5)    That the respondent be restrained from entering or attempting to enter on any premises when it appears to the court that restraint is necessary to prevent the respondent from committing vulnerable adult abuse;

            (6)    That the respondent be restrained from exercising any powers on behalf of the vulnerable adult through a court-appointed guardian, conservator, or guardian ad litem, an attorney in fact, or another third party; and

            (7)    In addition to the relief provided in section 14 of this Act, other relief that the court considers necessary to provide for the safety and welfare of the vulnerable adult.

    Any relief granted by the order for protection shall be for a fixed period and may not exceed five years.

    Section 14. That the code be amended by adding a NEW SECTION to read:

    If the court finds that the vulnerable adult has been the victim of financial exploitation, the court may order the relief the court considers necessary to prevent or remedy the financial exploitation, including any of the following:

            (1)    Directing the respondent to refrain from exercising control over the funds, benefits,

property, resources, belongings, or assets of the vulnerable adult;

            (2)    Requiring the respondent to return custody or control of the funds, benefits, property, resources, belongings, or assets to the vulnerable adult;

            (3)    Requiring the respondent to follow the instructions of the guardian, conservator, or attorney in fact of the vulnerable adult; and

            (4)    Prohibiting the respondent from transferring the funds, benefits, property, resources, belongings, or assets of the vulnerable adult to any person other than the vulnerable adult.

    Section 15. That the code be amended by adding a NEW SECTION to read:

    The court may not use an order issued pursuant to sections 13 to 20, inclusive, of this Act, to do any of the following:

            (1)    To allow any person other than the vulnerable adult to assume responsibility for the funds, benefits, property, resources, belongings, or assets of the vulnerable adult; or

            (2)    For relief that is more appropriately obtained in a proceeding filed pursuant to chapter 29A-5 including giving control and management of the funds, benefits, property, resources, belongings, or assets of the vulnerable adult to a conservator for any purpose other than the relief granted pursuant to section 14 of this Act.

    Section 16. That the code be amended by adding a NEW SECTION to read:

    A protection order shall be for a fixed period of time not to exceed five years. The court may amend or extend an order at any time upon a petition filed by either party and after notice and a hearing. The court may extend an order if the court, after a hearing at which the respondent has the opportunity to be heard, finds that the respondent continues to pose a threat to the safety of the vulnerable adult, a person residing with the vulnerable adult, or a member of the vulnerable adult's immediate family, or continues to present a risk of financial exploitation of the vulnerable adult. The number of extensions that the court may grant is not limited.

    Section 17. That the code be amended by adding a NEW SECTION to read:

    The court may order that the respondent pay the attorney's fees and court costs of the vulnerable adult and substitute petitioner.

    Section 18. That the code be amended by adding a NEW SECTION to read:

    An order pursuant to sections 3 to 20, inclusive, of this Act, does not affect title to real property.

    Section 19. That the code be amended by adding a NEW SECTION to read:

    The petitioner may deliver an order within twenty-four hours to the local law enforcement agency having jurisdiction over the residence of the vulnerable adult. Each law enforcement agency shall make available to other law enforcement officers information as to the existence and status of any order for protection issued pursuant to sections 3 to 20, inclusive, of this Act.

    Section 20. That the code be amended by adding a NEW SECTION to read:

    The petitioner's right to relief under sections 3 to 20, inclusive, of this Act, is not affected by the vulnerable adult leaving home to avoid vulnerable adult abuse.

    Section 21. That § 22-46-3 be amended to read as follows:



    22-46-3. Any person who, having assumed the duty voluntarily, by written contract, by receipt of payment for care, or by order of a court to provide for the support of an elder or a disabled an adult with a disability, and having been entrusted with the property of that elder or disabled adult with a disability, with intent to defraud, appropriates such property to a use or purpose not in the due and lawful execution of that person's trust, is guilty of theft by exploitation. Theft by exploitation is punishable as theft pursuant to chapter 22-30A.

    Section 22. That § 22-46-9 be amended to read as follows:

    22-46-9. Any person who is a:

            (1)    Physician, dentist, doctor of osteopathy, chiropractor, optometrist, podiatrist, religious healing practitioner, hospital intern or resident, nurse, paramedic, emergency medical technician, social worker, or any health care professional;

            (2)    Long-term care ombudsman;

            (3)    Psychologist, licensed mental health professional, or counselor engaged in professional counseling; or

            (4)    State, county, or municipal criminal justice employee or law enforcement officer;

who knows, or has reasonable cause to suspect, that an elder or disabled adult with a disability has been or is being abused or, neglected, or exploited, shall, within twenty-four hours, report such knowledge or suspicion orally or in writing to the state's attorney of the county in which the elder or disabled adult with a disability resides or is present, to the Department of Social Services, or to a law enforcement officer. Any person who knowingly fails to make the required report is guilty of a Class 1 misdemeanor.

    A person described in this section is not required to report the abuse, neglect, or exploitation of an elder or adult with a disability if the person knows that another person has already reported to a proper agency the same abuse, neglect, or exploitation that would have been the basis of the person's own report.

    Section 23. That chapter 22-46 be amended by adding a NEW SECTION to read:

    The person making a report as required by § 22-46-9 and as permitted by § 22-46-11 shall provide, or a proper agency receiving the report shall acquire, to the extent possible, the following information:

            (1)    The name, age, physical address, and contact information of the elder or adult with a disability;

            (2)    The name, age, physical address, and contact information of the person making the report;

            (3)    The name, age, physical address, and contact information of the caretaker of the elder or adult with a disability;

            (4)    The name of the alleged perpetrator;

            (5)    The nature and extent of the elder or adult with a disability's injury, whether physical or financial, if any;

            (6)    The nature and extent of the condition that required the report to be made; and

            (7)    Any other pertinent information.

    Section 24. That § 22-46-5 be amended to read:

    22-46-5. The person or agency that receives, pursuant to § 22-46-7, a report of abuse, neglect, or exploitation of an elder or adult with a disability shall also forward the report to the Office of the Attorney General, if the person or agency determines that reasonable suspicion exists to support further investigation. In investigating violations a violation of this chapter, law enforcement agencies shall cooperate with and assist the Department of Social Services. Upon receiving a report made pursuant to this chapter, the law enforcement agency shall evaluate whether a criminal investigation is appropriate.

    Section 25. That § 22-46-11 be amended to read:

    22-46-11. Any person who knows or has reason to suspect that an elderly or disabled elder or adult with a disability has been abused or, neglected, or exploited as defined in § 22-46-2 or 22-46-3 §§ 22-46-1 to 22-46-3, inclusive, may report that information, regardless of whether that person is one of the mandatory reporters listed in §§ 22-46-9 and 22-46-10.

    Section 26. That chapter 37-24 be amended by adding a NEW SECTION to read:

    A financial institution, as defined in 31 U.S.C. § 5312(a)(2), who voluntarily or mandatorily reports via a suspicious activity report, pursuant to 31 U.S.C. § 5318(g), any possible violation of law or regulation constituting exploitation, as defined in subdivision (5) of section 1 of this Act, may also report the information contained in the suspicious activity report to state or local law enforcement. A financial institution is immune from any civil or criminal liability that might otherwise result from complying with this section.

    Section 27. That chapter 37-24 be amended by adding a NEW SECTION to read:

    A financial institution shall cooperate with any lead investigative agency, law enforcement, or prosecuting authority that is investigating the abuse, neglect, or exploitation of an elder or adult with a disability and comply with reasonable requests for the production of financial records. A financial institution is immune from any civil or criminal liability that might otherwise result from complying with this section.

    Section 28. That chapter 22-46 be amended by adding a NEW SECTION to read:

    A court may find that an elder or adult with a disability has been exploited as defined in § 22-46-1 or 22-46-3. If a court finds exploitation occurred, the elder or adult with a disability has a cause of action against the perpetrator and may recover actual and punitive damages for the exploitation. The action may be brought by the elder or adult with a disability, or that person's guardian, conservator, by a person or organization acting on behalf of the elder or adult with a disability with the consent of that person or that person's guardian or conservator, or by the personal representative of the estate of a deceased elder or adult with a disability without regard to whether the cause of death resulted from the exploitation. The action may be brought in any court of competent jurisdiction to enforce the action. A party who prevails in the action may recover reasonable attorney's fees, costs of the action, compensatory damages, and punitive damages.

    Section 29. That chapter 22-46 be amended by adding a NEW SECTION to read:

    In addition to the damages prescribed in section 28 of this Act, the court may impose the following penalties:

            (1)    Revoke, in whole or in part, any revocable:

            (a)    Provision by the elder or adult with a disability that is contained in a governing instrument that confers a general or nongeneral power of appointment on the

perpetrator; and

            (b)    Nomination or appointment by the elder or adult with a disability that is contained in a governing instrument that nominates or appoints the perpetrator to serve in any fiduciary or representative capacity, including serving as a personal representative, executor, guardian, conservator, trustee, attorney in fact, or agent;

            (2)    Sever the interests of the elder or adult with a disability and the perpetrator in any property that is held by them at the time of the violation as joint tenants with the right of survivorship and transform the interests of the elder or adult with a disability and the perpetrator into tenancies in common. To the extent that the perpetrator did not provide adequate consideration for the jointly held interest, the court may cause the person's interest in the subject property to be forfeited in whole or in part.

    Section 30. That chapter 22-46 be amended by adding a NEW SECTION to read:

    A severance pursuant to subdivision (2) of section 29 of this Act does not affect any third party interest in property that was acquired for value and in good faith reliance on apparent title by survivorship in the perpetrator unless a writing declaring the severance has been noted, registered, filed, or recorded in records that are appropriate to the kind and location of the property and that are relied on as evidence of ownership in the ordinary course of transactions involving that property.

    Section 31. That chapter 22-46 be amended by adding a NEW SECTION to read:

    If the court imposes a revocation pursuant to subdivision (1) of section 29 of this Act, provisions of the governing instrument shall be given effect as if the perpetrator disclaimed all provisions revoked by the court or, in the case of a revocation of a nomination in a fiduciary or representative capacity, the perpetrator predeceased the decedent.

    Section 32. That chapter 22-46 be amended by adding a NEW SECTION to read:

    The court may authorize remedies provided in section 14 of this Act for violations under section 28 of this Act or § 22-46-3.

    Section 33. That chapter 22-46 be amended by adding a NEW SECTION to read:

    The remedies provided in sections 28 to 32, inclusive, of this Act, are in addition to and cumulative with other legal and administrative remedies available to an elder or adult with a disability.

    Section 34. That § 59-7-2.1 be amended to read:

    59-7-2.1. Notwithstanding § 59-7-2, if a principal designates another as the principal's attorney in fact or agent by a written power of attorney which contains the words "This power of attorney shall not be affected by disability of the principal," or "This power of attorney shall become effective upon the disability of the principal," or similar words showing the intent of the principal that the authority conferred is exercisable notwithstanding the principal's disability, the authority of the attorney in fact or agent is exercisable by the attorney in fact or agent as provided in the power on behalf of the principal notwithstanding any later disability or incapacity of the principal or later uncertainty as to whether or not the principal is dead or alive.

    The durable power of attorney must be signed by the principal or in the principal's conscious presence by another individual directed by the principal to sign the principal's name on the power of attorney. The signature must be witnessed by two other adult individuals or by a notary public. A power of attorney granted pursuant to this section may authorize the attorney-in-fact to consent to, to reject, or to withdraw consent for health care, including any care, service, or procedure to

maintain, diagnose, or treat a person's physical or mental condition.

    Section 35. That chapter 59-7 be amended by adding a NEW SECTION to read:

    If a conservator of the principal is appointed after the occurrence of the disability or incapacity referred to in § 59-7-2.1, any power of attorney authorizing an agent to act on the principal's finances or estate is terminated at the time of the appointment and the person acting under the power of attorney shall account to the conservator rather than to the principal.

    Section 36. That chapter 59-7 be amended by adding a NEW SECTION to read:

    If, after a principal executes a power of attorney for health care pursuant to § 59-7-2.1, a court appoints a guardian of the principal's person, the power of attorney is terminated at the time of the appointment, but the guardian shall follow any provisions contained in the power of attorney for health care delineating the principal's wishes for medical and end-of-life care.

    Section 37. That § 29A-5-118 be amended to read:

    29A-5-118. The appointment of a guardian or conservator of a protected person does not constitute a general finding of legal incompetence unless the court so orders, and the protected person shall otherwise retain all rights which have not been granted to the guardian or conservator, with the exception of the ability to create an agency and confer authority on another person to do any act that the protected person might do, pursuant to § 59-2-1. Unless prior authorization of the court is first obtained, a guardian or conservator may not change the residence of the minor or protected person to another state, terminate or consent to a termination of the minor's or protected person's parental rights, initiate a change in the minor's or protected person's marital status, or revoke or amend a durable power of attorney of which the protected person is the principal, except as provided in sections 35 and 36 of this Act.

    Section 38. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    The State Bar of South Dakota shall prepare and approve training curricula for persons appointed as guardians and conservators. The training curricula shall include:

            (1)    The rights of minors and protected persons under chapter 29A-5 and under the laws of the United States generally;

            (2)    The duties and responsibilities of guardians and conservators;

            (3)    Reporting requirements;

            (4)    Least restrictive options in the areas of housing, medical care, and psychiatric care; and

            (5)    Resources to assist guardians and conservators in fulfilling their duties.

    Each person appointed by the court to be a guardian or conservator must complete the training curricula within four months after the appointment as a guardian or conservator.

    Section 39. That § 29A-5-110 be amended to read:

    29A-5-110. Any adult individual may be appointed as a guardian, a conservator, or both, if capable of providing an active and suitable program of guardianship or conservatorship for the minor or protected person, and if not employed by any public or private agency, entity, or facility that is providing substantial services or financial assistance to the minor or protected person. The court may waive the prohibition on appointing an individual as guardian or conservator because of the individual's employment if the court finds the appointment is in the best interest of the minor or

protected person.

    Any public agency or nonprofit corporation may be appointed as a guardian, a conservator, or both, if it is capable of providing an active and suitable program of guardianship or conservatorship for the minor or protected person, and if it is not providing substantial services or financial assistance to the minor or protected person.

    Any bank or trust company authorized to exercise trust powers or to engage in trust business in this state may be appointed as a conservator if it is capable of providing a suitable program of conservatorship for the minor or protected person.

    The Department of Human Services or the Department of Social Services may be appointed as a guardian, a conservator, or both, for individuals under its care or to whom it is providing services or financial assistance, but such appointment may only be made if there is no individual, nonprofit corporation, bank or trust company, or other public agency that is qualified and willing to serve.

    No individual or entity, other than a bank or trust company, whose only interest is that of a creditor, is eligible for appointment as either a guardian or conservator.

    No individual who has been convicted of a felony is eligible for appointment as a guardian or conservator unless the court finds appointment of the person convicted of a felony to be in the best interests of the person for whom the guardianship or conservatorship is sought. As part of the best interest determination, the court shall consider the nature of the offense, the date of offense, and the evidence of the proposed guardian's or proposed conservator's rehabilitation.

    A person, except for a financial institution or its officers, directors, employees, or agents, or a trust company, who has been nominated for appointment as a guardian or conservator, shall obtain an Interstate Identification Index criminal history record check and a record check of South Dakota state court civil judgments for abuse, neglect, or exploitation of an elder or adult with a disability. The nominee shall file the results of these record checks with the court at least ten days prior to the appointment hearing date, unless waived or modified by the court for good cause shown by affidavit filed simultaneously with the petition for appointment.

    The judge may not sign an order appointing a guardian or conservator until the record check results have been filed with the court and reviewed by the judge. The record check results, or the lack thereof, shall be certified by affidavit. The court may not require a record check upon the application of a petitioner for a temporary guardianship or temporary conservatorship. The court may waive the record check for good cause shown.

    Section 40. That § 29A-5-111 be amended to read:

    29A-5-111. The appointment of a guardian or conservator does not become effective nor may letters of guardianship or conservatorship issue until the guardian or conservator has filed an acceptance of office and any required bond.

    The court may not require the filing of a bond by a guardian except for good cause shown.

    The court shall determine whether the filing of a bond by a conservator is necessary. In determining the necessity for or amount of a conservator's bond, the court shall consider:

            (1)    The value of the personal estate and annual gross income and other receipts within the conservator's control;

            (2)    The extent to which the estate has been deposited under an arrangement requiring an order of court for its removal;

            (3)    Whether an order has been entered waiving the requirement that accountings be filed and presented or permitting accountings to be filed less frequently than annually;

            (4)    The extent to which the income and receipts are payable directly to a facility responsible for or which has assumed responsibility for the care or custody of the minor or protected person;

            (5)    Whether a guardian has been appointed, and if so, whether the guardian has presented reports as required;

            (6)    Whether the conservator was appointed pursuant to a nomination which requested that bond be waived; and

            (7)    Any other factors which the court deems appropriate.

    Any required bond shall be with such surety and in such amount and form as the court may order. The court may order additional bond or reduce bond whenever it considers such modification to be in the best interests of the minor, the protected person, or the estate.

    The surety or sureties of the bond must immediately serve notice to the court and to the minor, the protected person, or the estate if the bond is not renewed by the guardian or conservator.

     Signed March 11, 2016
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CRIMES

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\121.wpd
CHAPTER 121

(SB 140)

No life sentences for defendants under the age of eighteen.


        ENTITLED, An Act to eliminate life sentences for defendants under the age of eighteen at the time of the crime.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-6-1 be amended to read:

    22-6-1. Except as otherwise provided by law, felonies are divided into the following nine classes which are distinguished from each other by the following maximum penalties which are authorized upon conviction:

            (1)    Class A felony: death or life imprisonment in the state penitentiary. A lesser sentence than death or life imprisonment may not be given for a Class A felony. In addition, a fine of fifty thousand dollars may be imposed;

            (2)    Class B felony: life imprisonment in the state penitentiary. A lesser sentence may not be given for a Class B felony. In addition, a fine of fifty thousand dollars may be imposed;

            (3)    Class C felony: life imprisonment in the state penitentiary. In addition, a fine of fifty thousand dollars may be imposed;

            (4)    Class 1 felony: fifty years imprisonment in the state penitentiary. In addition, a fine of fifty thousand dollars may be imposed;

            (5)    Class 2 felony: twenty-five years imprisonment in the state penitentiary. In addition, a fine of fifty thousand dollars may be imposed;

            (6)    Class 3 felony: fifteen years imprisonment in the state penitentiary. In addition, a fine of thirty thousand dollars may be imposed;

            (7)    Class 4 felony: ten years imprisonment in the state penitentiary. In addition, a fine of twenty thousand dollars may be imposed;

            (8)    Class 5 felony: five years imprisonment in the state penitentiary. In addition, a fine of ten thousand dollars may be imposed; and

            (9)    Class 6 felony: two years imprisonment in the state penitentiary or a fine of four thousand dollars, or both.

    If the defendant is under the age of eighteen years at the time of the offense and found guilty of a Class A, or B, or C felony, the maximum sentence may be life imprisonment in the state penitentiary. In addition, a term of years in the state penitentiary, and a fine of fifty thousand dollars may be imposed.

    The court, in imposing sentence on a defendant who has been found guilty of a felony, shall order in addition to the sentence that is imposed pursuant to the provisions of this section, that the defendant make restitution to any victim in accordance with the provisions of chapter 23A-28.

    Nothing in this section limits increased sentences for habitual criminals under §§ 22-7-7, 22-7-8, and 22-7-8.1.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    The penalty of life imprisonment may not be imposed upon any defendant for any offense committed when the defendant was less than eighteen years of age.

     Signed March 16, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\122.wpd
CHAPTER 122

(SB 30)

Department of Corrections employees
excluded from concealed carry requirements when on duty.


        ENTITLED, An Act to provide that Department of Corrections employees are excluded from concealed weapons permit requirements when on duty and acting under the color of authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-14-9 be amended to read:



    22-14-9. Any person, other than a law enforcement officer or parole agent as defined in § 22-1-2 acting under color of authority, who:

            (1)    Carries a pistol or revolver, loaded or unloaded, concealed on or about his or her person without a permit as provided in chapter 23-7; or

            (2)    Carries a pistol or revolver, loaded or unloaded, concealed in any vehicle while operating the vehicle, without a permit as provided in chapter 23-7;

is guilty of a Class 1 misdemeanor.

    Section 2. That § 23-7-8.1 be amended to read:

    23-7-8.1. The secretary of state shall prescribe the form of the permit to carry a concealed pistol and the form of the enhanced permit to carry a concealed pistol pursuant to § 23-7-8. Each permit shall list the applicant's name, address, and the expiration date of the permit. The enhanced permit to carry a concealed pistol must clearly designate that the permit is enhanced. The holder of a permit may carry a concealed pistol anywhere in South Dakota except in any licensed on-sale malt beverage or alcoholic beverage establishment that derives over one-half of its total income from the sale of malt or alcoholic beverages. Nothing in this section prevents law enforcement officers, Department of Corrections employees, parole agents, security guards employed on the premises, and other public officials with the written permission of the sheriff from carrying concealed weapons in the performance of their duties or prevents home or business owners from carrying concealed weapons on their property pursuant to § 22-14-11.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\123.wpd
CHAPTER 123

(HB 1243)

Unauthorized sharing prohibited of private images on the internet.


        ENTITLED, An Act to prohibit the unauthorized sharing of certain private images on the internet.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-21-4 be amended to read:

    22-21-4. No person may use or disseminate in any form any visual recording or photographic device to photograph or visually record any other person without clothing or under or through the clothing, or with another person depicted in a sexual manner, for the purpose of viewing the body of, or the undergarments worn by, that other person, without the consent or knowledge of that other person, with the intent to self-gratify, to harass, or embarrass and invade the privacy of that other person, under circumstances in which the other person has a reasonable expectation of privacy. A violation of this section is a Class 1 misdemeanor. However, a violation of this section is a Class 6 felony if the victim is seventeen years of age or younger and the perpetrator is at least twenty-one years old.

    Section 2. That chapter 22-21 be amended by adding a NEW SECTION to read:

    Nothing in this Act shall be construed to impose liability on a provider of an electronic communication service, an information service, a mobile service, including a commercial mobile

service, a telecommunication service, an interactive computer service, or a cable service as those terms are defined under federal law.

     Signed March 14, 2016

_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\124.wpd
CHAPTER 124

(SB 169)

Revisions for the crime of child pornography.


        ENTITLED, An Act to revise provisions related to child pornography and to revise the penalty therefor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-24A-1 be amended to read:

    22-24A-1. Any person who sells, or displays for sale, any book, magazine, pamphlet, slide, photograph, film, or electronic or digital media image depicting a minor engaging in a prohibited sexual act, or engaging in an activity that involves nudity, or in the simulation of any such act is guilty of a Class 6 Class 4 felony.

    Section 2. That § 22-24A-5 be amended to read:

    22-24A-5. A person is guilty of solicitation of a minor if the person eighteen years of age or older:

            (1)    Solicits a minor, or someone the person reasonably believes is a minor, to engage in a prohibited sexual act; or

            (2)    Knowingly compiles or transmits by means of a computer; or prints, publishes or reproduces by other computerized or any other electronic means; or buys, sells, receives, exchanges or disseminates, any notice, statement or advertisement of any minor's name, telephone number, place of residence, physical characteristics or other descriptive or identifying information for the purpose of soliciting a minor or someone the person reasonably believes is a minor to engage in a prohibited sexual act.

    The fact that an undercover operative or law enforcement officer was involved in the detection and investigation of an offense under this section does not constitute a defense to a prosecution under this section.

    Consent to performing a prohibited sexual act by a minor or a minor's parent, guardian, or custodian, or mistake as to the minor's age is not a defense to a charge of violating this section.

    A violation of this section is a Class 4 felony.

    The court shall order an assessment pursuant to § 22-22-1.3 of any person convicted of violating this section.

    Nothing contained in this section shall be construed to impose liability on a provider of an electronic communication service, an information service, a mobile service, including a commercial

mobile service, a telecommunication service, an interactive computer service, or a cable service.

     Signed March 22, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\125.wpd
CHAPTER 125

(SB 25)

Property forfeiture for persons convicted of certain crimes.


        ENTITLED, An Act to revise certain provisions concerning forfeiture of property interests of persons convicted of certain crimes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-24A-15 be amended to read:

    22-24A-15. Any person who is convicted of an offense under §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, 43-43B-1 to 43-43B-3, inclusive, and 22-23-2, 22-23-8, and 22-23-9, or under 18 U.S.C. §§ 1466A, 1470, 1591, 2251, 2251A, 2252, 2252A, 2252B, 2252C, 2260, 2421, 2422, and 2423, as of January 1, 2016, shall forfeit to the state the person's interest in the following and no property right exists in them:

            (1)    Any photograph, film, videotape, book, digital media or visual depiction that has been manufactured, distributed, purchased, possessed, acquired, or received in violation of §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (2)    Any material, product, and equipment of any kind that is used or intended for use in manufacturing, processing, publishing, selling, possessing, or distributing any visual depiction proscribed by §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (3)    Any property that is used, or intended for use, as a container for property described in subdivisions (1) and (2) of this section, including any computers and digital media;

            (4)    Any conveyances including aircraft, vehicles, or vessels, that transport, possess, or conceal, or that is used, or intended for use, to transport, or in any manner facilitate any activity proscribed under §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (5)    Any book, record, and research, including microfilm, tape, and data that is used, or intended for use, in violation of §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (6)    Any funds or other things of value used for the purposes of unlawfully carrying out any activity proscribed by §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, 43-43B-1 to 43-43B-3, inclusive, and 22-23-2, 22-23-8, and 22-23-9; and

            (7)    Any asset, interest, profit, income, and proceed acquired or derived from the unlawful activity proscribed by §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, 43-43B-1 to 43-43B-3, inclusive, and 22-23-2, 22-

23-8, and 22-23-9.

    Any property described in subdivision (1) of this section shall be deemed contraband and shall be summarily forfeited to the state. Any other property seized and forfeited shall be used to reimburse the actual costs of the criminal investigation and prosecution. Any amount over and above the amount necessary to reimburse for the investigation and prosecution shall be used to satisfy any civil judgments received by victims. All remaining proceeds from the sale of any forfeited property shall be paid into the South Dakota internet crimes against children fund.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\126.wpd
CHAPTER 126

(SB 26)

Sex offender registration requirements updated.


        ENTITLED, An Act to revise certain provisions concerning sex offender registration and to require an offender to notify of intended foreign travel.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-24B-1 be amended to read:

    22-24B-1. For the purposes of §§ 22-24B-2 to 22-24B-14, inclusive, a sex crime is any of the following crimes regardless of the date of the commission of the offense or the date of conviction:

            (1)    Rape as set forth in § 22-22-1;

            (2)    Felony sexual contact with a minor under sixteen as set forth in § 22-22-7 if committed by an adult;

            (3)    Sexual contact with a person incapable of consenting as set forth in § 22-22-7.2;

            (4)    Incest if committed by an adult;

            (5)    Possessing, manufacturing, or distributing child pornography as set forth in § 22-24A-3;

            (6)    Sale of child pornography as set forth in § 22-24A-1;

            (7)    Sexual exploitation of a minor as set forth in § 22-22-24.3;

            (8)    Kidnapping, as set forth in § 22-19-1, if the victim of the criminal act is a minor;

            (9)    Promotion of prostitution of a minor as set forth in subdivision 22-23-2(2);

            (10)    Criminal pedophilia as previously set forth in § 22-22-30.1;

            (11)    Felony indecent exposure as previously set forth in former § 22-24-1 or felony indecent exposure as set forth in § 22-24-1.2;

            (12)    Solicitation of a minor as set forth in § 22-24A-5;

            (13)    Felony indecent exposure as set forth in § 22-24-1.3;

            (14)    Bestiality as set forth in § 22-22-42;

            (15)    An attempt, conspiracy, or solicitation to commit any of the crimes listed in this section or any conspiracy or solicitation to commit any of the crimes listed in this section;

            (16)    Any crime, court martial offense, or tribal offense committed in a place other than this state which would constitute that constitutes a sex crime under this section if committed in this state;

            (17)    Any federal crime or, court martial offense, or tribal offense that would constitute constitutes a sex crime under federal law;

            (18)    Any crime committed in another state if that state also requires that anyone convicted of that crime register as a sex offender in that state;

            (19)    If the victim is a minor:

            (a)    Any sexual acts between a jail employee and a detainee as set forth in § 22-22-7.6;

            (b)    Any sexual contact by a psychotherapist as set forth in § 22-22-28; or

            (c)    Any sexual penetration by a psychotherapist as set forth in § 22-22-29;

            (20)    Intentional exposure to HIV infection as set forth in subdivision (1) of § 22-18-31;

            (21)    First degree human trafficking as set forth in § 22-49-2 if the victim is a minor; or

            (22)    Second degree human trafficking as set forth in § 22-49-3 involving the prostitution of a minor.

    Section 2. That § 22-24B-2 be amended to read:

    22-24B-2. Any person who has been convicted for commission of a sex crime, as defined in § 22-24B-1, shall register in person as a sex offender. The term, convicted, includes a verdict or plea of guilty, a plea of nolo contendere, and a suspended imposition of sentence which has not been discharged pursuant to § 23A-27-14 prior to before July 1, 1995.

    Any juvenile fourteen years or older at the time of the offense shall register as a sex offender if that juvenile has been adjudicated of rape as defined in subdivision 22-24B-1(1), or of an out-of-state or federal offense that is comparable to the elements of these crimes the crime of rape or any crime committed in another state if the state also requires a juvenile adjudicated of that crime to register as a sex offender in that state. The term, adjudicated, includes a court's finding of delinquency, an admission, and a suspended adjudication of delinquency which has not been discharged pursuant to § 26-8C-4 prior to before July 1, 2009.

    The sex offender shall register within three business days of coming into any county to reside, temporarily domicile, attend school, attend postsecondary education classes, or work. Registration shall be with the chief of police of the municipality or the sheriff of the county in which the sex offender resides, temporarily domiciles, attends school, attends postsecondary education classes, or works, or, if no chief of police exists, then with the sheriff of the county. The sex offender shall notify the chief of police or sheriff if there is a change where the sex offender resides, attends school, or works. If the sex offender is not otherwise registered in the state, the sex offender shall register within three business days of coming into any county when the sex offender applies for or receives a South Dakota driver license, registers a motor vehicle, establishes a postal address, or registers to

vote. A violation of this section is a Class 6 felony. Any person whose sentence is discharged pursuant to § 23A-27-14 after July 1, 1995, shall forward a certified copy of such the formal discharge by certified mail to the Division of Criminal Investigation and to local law enforcement where the person is then registered under this section. Upon receipt of the notice, the person shall be removed from the sex offender registry open to public inspection and shall be relieved of further registration requirements under this section.

    Any juvenile whose suspended adjudication is discharged pursuant to § 26-8C-4 after July 1, 2009, shall forward a certified copy of the formal discharge by certified mail to the Division of Criminal Investigation and to local law enforcement where the juvenile is then registered under this section. Upon receipt of the notice, the juvenile shall be removed from the sex offender registry open to public inspection and shall be relieved of further registration requirements under this section.

    Section 3. That § 22-24B-8 be amended to read:

    22-24B-8. The registration shall include the following information which, unless otherwise indicated, shall be provided by the offender:

            (1)    Name, date of birth, and all aliases used;

            (2)    Complete description, photographs, fingerprints and palm prints collected and provided by the registering agency;

            (3)    Residence, length of time at that residence including the date the residence was established, and length of time expected to remain at that residence;

            (4)    The type of sex crime convicted of;

            (5)    The date of commission and the date of conviction of any sex crime committed;

            (6)    Social Security number on a separate confidential form;

            (7)    Driver license or identification card number and, state of issuance, and a photocopy of the driver license or identification card;

            (8)    Whether or not the registrant is receiving or has received any sex offender treatment;

            (9)    Employer name, address, and phone number or school name, address, and phone number;

            (10)    Length of employment or length of attendance at school;

            (11)    Occupation or vocation;

            (12)    Vehicle license plate number of any vehicle owned or regularly operated by the offender;

            (13)    Information identifying any internet accounts of the offender as well as any user names, screen names, and aliases that the offender uses on the internet;

            (14)    A listing of all felony convictions, in any jurisdiction, for crimes committed as an adult and sex offense convictions and adjudications subject to sex offender registry provided by the offender and confirmed by the registering agency;

            (15)    A description of the offense, provided by the prosecuting attorney;

            (16)    Acknowledgment whether the offender is currently an inmate, parolee, juvenile in department of corrections placement or under aftercare supervision, county or city jail

inmate or detainee in a juvenile detention center, provided by the offender and confirmed by the administering body of the correctional facility;

            (17)    Acknowledgment whether the offender is subject to community safety zone restrictions, provided by the registering agency;

            (18)    The name, address and phone number of two local contacts, who have regular interaction with the offender and the name, address and phone number of the offender's next of kin;

            (19)    Passport and any document establishing immigration status, including the document type and number along with a photocopy of the passport or immigration document; and

            (20)    Any professional, occupational, business or trade license from any jurisdiction.

    In addition, at the time of the offender's registration, the registering agency will collect a DNA sample and submit the sample to the South Dakota State Forensic Laboratory in accordance with procedures established by the South Dakota State Forensic Laboratory. The collection of DNA at the time of the registration is not required if the registering agency can confirm that DNA collection and submission to the South Dakota State Forensic Laboratory has already occurred.

    Any failure by the offender to accurately provide the information required by this section is a Class 6 felony.

    Section 4. That chapter 22-24B be amended by adding a NEW SECTION to read:

    A sex offender shall report his or her intention to travel outside of the United States at least twenty-one days in advance of the travel to the chief of police or county sheriff. The law enforcement officer shall complete a notification of international travel of sex offender form and forward the form to the Division of Criminal Investigation. The division shall forward the form to the United States marshals service national sex offender targeting center. A violation of this section is a Class 1 misdemeanor.

     Signed March 15, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\127.wpd
CHAPTER 127

(HB 1244)

Sex offender registry revised.


        ENTITLED, An Act to revise provisions related to the sex offender registry.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-24B-19 be amended to read:

    22-24B-19. To be eligible for removal from the registry as a Tier I offender, the petitioner shall show, by clear and convincing evidence, that all of the following criteria have been met:

            (1)    At least ten five years have elapsed since the date the petitioner first registered pursuant to this chapter;

            (2)    The crime requiring registration was for:

            (a)    Statutory rape under subdivision 22-22-1(5), or an attempt to commit statutory rape under subdivision 22-22-1(5), but only if the petitioner was twenty-one years of age or younger at the time the offense was committed or attempted;

            (b)    A juvenile adjudication for a sex crime as defined in subdivision 22-24B-1(1);

            (c)    Sexual contact under § 22-22-7 if the victim was between the ages of thirteen and sixteen and the petitioner was at least three years older than the victim, but only if the petitioner was twenty-one years of age or younger at the time the offense was committed; or

            (d)    An out-of-state, federal or court martial offense that is comparable to the elements of the crimes listed in (a), (b), or (c);

            (3)    The circumstances surrounding the crime requiring registration did not involve a child under the age of thirteen;

            (4)    The petitioner is not a recidivist sex offender;

            (5)    The petitioner has substantially complied in good faith with the registration and re-registration requirements imposed under chapter 22-24B; and

            (6)    Petitioner demonstrates to the satisfaction of the court that he or she does not pose a risk or danger to the community.

    For purposes of this section, any period of time during which the petitioner was incarcerated or during which the petitioner was confined in a mental health facility does not count toward the ten-year five-year calculation, regardless of whether such incarceration or confinement was for the sex offense requiring registration or for some other offense.

     Signed March 22, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\128.wpd
CHAPTER 128

(SB 19)

Elder and disabled abuse reporting requirements revised.


        ENTITLED, An Act to revise certain mandatory reporting requirements for elder and disabled adult abuse and neglect.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-46-9 be amended to read:

    22-46-9. Any person who is a:

            (1)    Physician, dentist, doctor of osteopathy, chiropractor, optometrist, podiatrist, religious healing practitioner, hospital intern or resident, nurse, paramedic, emergency medical technician, social worker, or any health care professional;

            (2)    Long-term care ombudsman;

            (3)    Psychologist, licensed mental health professional, or counselor engaged in professional counseling; or

            (4)    State, county, or municipal criminal justice employee or law enforcement officer;

who knows, or has reasonable cause to suspect, that an elder or disabled adult has been or is being abused or neglected, shall, within twenty-four hours, report such the knowledge or suspicion orally or in writing to the state's attorney of the county in which the elder or disabled adult resides or is present, to the Department of Social Services, or to a law enforcement officer. Any person who knowingly fails to make the required report is guilty of a Class 1 misdemeanor.

    For the purposes of this section, the term, person, means:

            (1)    Physician, dentist, doctor of osteopathy, chiropractor, optometrist, podiatrist, religious healing practitioner, hospital intern or resident, nurse, paramedic, emergency medical technician, social worker, or any health care professional;

            (2)    Psychologist, licensed mental health professional, or counselor engaged in professional counseling; or

            (3)    State, county, or municipal criminal justice employee or law enforcement officer.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\128.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\129.wpd
CHAPTER 129

(SB 168)

Revisions for the crime of human trafficking.


        ENTITLED, An Act to revise provisions related to human trafficking and to provide a penalty therefor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 22-49-1 be amended to read:

    22-49-1. No person may recruit, harbor, transport, provide, receive, or obtain, by any means, another person knowing that force, fraud, or coercion will be used to cause the person to engage in prostitution, forced labor, or involuntary servitude. Nor may any person benefit financially or by receiving anything of value from participation in a venture that has engaged in acts set forth in this section. Any violation of this section constitutes the crime of human trafficking.

    Section 2. That § 22-49-2 be amended to read:

    22-49-2. If the acts or the venture set forth in § 22-49-1:

            (1)    Involve committing or attempting to commit kidnaping kidnapping;

            (2)    Involve a victim under the age of sixteen eighteen years;

            (3)    Involve prostitution or procurement for prostitution; or

            (4)    Result in the death of a victim;

any person guilty has committed human trafficking in the first degree, which is a Class 2 felony.

    Section 3. That chapter 22-49 be amended by adding a NEW SECTION to read:

    It is a Class 6 felony for a person to hire or attempt to hire another person for a fee to engage in sexual activity, as defined in § 22-23-1.1, if the person knew or should have known the other person was being forced to engage in the activity through human trafficking.

     Signed March 22, 2016
_______________
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LAW ENFORCEMENT

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\130.wpd
CHAPTER 130

(HB 1132)

Sexual assault kits testing required.


        ENTITLED, An Act to require the submission of sexual assault kits for testing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Accredited laboratory," a DNA laboratory that has received formal recognition that it meets or exceeds a list of standards, including the FBI director's quality assurance standards, to perform specific tests;

            (2)    "DNA," deoxyribonucleic acid;

            (3)    "DNA record," the DNA identification information stored in the state DNA database or CODIS for the purpose of generating investigative leads or supporting statistical interpretation of DNA test results. The DNA record is the result obtained from the DNA analysis. The DNA record is comprised of the characteristics of a DNA sample which are of value in establishing the identity of individuals. The results of all DNA identification analyses on an individual's DNA sample are also collectively referred to as the DNA profile of an individual;

            (4)    "Health care facility," any institution, sanitarium, birth center, ambulatory surgery center, chemical dependency treatment facility, hospital, nursing facility, assisted living center, rural primary care hospital, adult foster care home, inpatient hospice, residential hospice, place, building, or agency in which any accommodation is maintained, furnished, or offered for the hospitalization, nursing care, or supervised care of the sick or injured; and

            (5)    "Sexual assault kit," a set of swabs, slides, envelopes, instructions, and forms specifically designed to collect and preserve physical evidence that can be used in a criminal sexual

assault investigation.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Any health care facility administering a sexual assault kit that has obtained written consent to release the kit evidence shall notify the investigating law enforcement agency, if known, or the law enforcement agency with local jurisdiction, within twenty-four hours after obtaining the consent.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Any health care facility that has not obtained consent to release any sexual assault kit evidence shall inform the person from which the evidence was collected of its sexual assault kit evidence storage policy. Any information provided under this section shall include the period of time for which that evidence shall be stored before it is destroyed, and how the person may have the evidence released to the investigating law enforcement agency at a later point. Any evidence not released to a law enforcement agency shall be stored for a minimum of one year before it is destroyed.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    A law enforcement agency that receives notice that sexual assault kit evidence has been released shall take possession of the evidence from the health care facility within fourteen days of receiving the notice. The agency that takes possession of the evidence shall follow standard protocol to submit the evidence to the Division of Criminal Investigation or another accredited laboratory for analysis within fourteen days of receiving the evidence.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    Any sexual assault kit evidence that is submitted to the Division of Criminal Investigation or another accredited laboratory shall be analyzed within ninety days after all necessary evidence is received by the division or the laboratory.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    The DNA records for any sexual assault kit evidence analyzed under this Act shall be uploaded only into those databases at the state and national levels specified by the Division of Criminal Investigation.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    Any failure to comply with the requirements of this Act does not constitute grounds in any criminal proceeding for challenging the validity of a DNA database match or of any database information. No evidence of that DNA record may be excluded by a court on those grounds.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\130.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\131.wpd
CHAPTER 131

(HB 1138)

Enhanced concealed carry permit revised.


        ENTITLED, An Act to revise provisions related to the enhanced permit to carry a concealed pistol.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 23-7-8 be amended to read:

    23-7-8. The application for a permit to carry a concealed pistol or an enhanced permit to carry a concealed pistol shall be filed either electronically or in triplicate on a form prescribed by the secretary of state. The application shall require the applicant's complete name, address, occupation, place and date of birth, physical description, a statement that the applicant has never pled guilty to, nolo contendere to, or been convicted of a crime of violence, a sworn statement that the information on the application is true and correct, and the applicant's signature. If filed in triplicate, the original shall be delivered to the applicant as the temporary permit, the duplicate shall within seven days be sent by first class mail to the secretary of state who shall issue the official permit, and the triplicate shall be preserved for four five years by the authority issuing the permit. If the application is filed electronically, two copies shall be made and each shall be signed by the applicant. One copy shall be delivered to the applicant as the temporary permit, and the other copy shall be preserved for four five years by the authority issuing the permit.

    Section 2. That § 23-7-53 be amended to read:

    23-7-53. An applicant may submit an application to the sheriff of the county in which the applicant resides for an optional enhanced permit to carry a concealed pistol. The application shall include:

            (1)    The application for the optional enhanced permit to carry a concealed pistol;

            (2)    A copy of the applicant's fingerprints for submission to the Federal Bureau of Investigation, and any governmental agency or entity authorized to receive such information, for a state, national, and international criminal history background check;

            (3)    An authorization to run a fingerprint background check;

            (4)    A separate payment for the cost of processing the fingerprint background check;

            (5)    A separate application fee of one hundred dollars for the optional permit to carry a concealed pistol which shall be distributed fifty dollars percent to the sheriff and fifty dollars percent to the secretary of state to be used by the secretary of state to administer the concealed carry program; and

            (6)    Proof that the applicant has successfully completed a qualifying handgun course as defined in § 23-7-58 within the preceding twelve months or proof that the applicant is a current or former South Dakota law enforcement officer.

    The sheriff shall forward the copy of the applicant's fingerprints, the applicant's authorization for processing a fingerprint background check, and the payment for the fingerprint background check to the Division of Criminal Investigation for processing.

    Section 3. That § 23-7-56 be amended to read:

    23-7-56. The holder of the permit may renew the permit through the sheriff of the county where the holder resides for a period beginning ninety days before the permit expires and ending thirty days after expiration of the permit, if the holder pays the fifty dollar renewal fee and passes a National Instant Criminal Background Check. If the holder of the enhanced permit to carry a concealed pistol does not renew the permit within thirty days of expiration of the permit, the holder must reapply for an enhanced permit to carry a concealed pistol pursuant to § 23-7-53. The renewal fee shall be distributed fifty percent to the sheriff and fifty percent to the secretary of state to be used by the secretary of state to administer the concealed carry program.

     Signed March 10, 2016
_______________
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CHAPTER 132

(HB 1190)

Firearms transactions, public safety,
and the issuance of an additional concealed pistol permit.


        ENTITLED, An Act to enhance customer convenience in firearms transactions, improve public safety, and provide for the issuance of an additional concealed pistol permit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 23-7-8 be amended to read:

    23-7-8. The application for a permit to carry a concealed pistol or an, enhanced permit to carry a concealed pistol, or a gold card permit to carry a concealed pistol shall be filed either electronically or in triplicate on a form prescribed by the secretary of state. The application shall require the applicant's complete name, address, occupation, place and date of birth, country of citizenship, physical description, a statement that the applicant has never pled guilty to, nolo contendere to, or been convicted of a crime of violence, a sworn statement that the information on the application is true and correct, and the applicant's signature. If the applicant is not a United States citizen, the application shall require any alien or admission number issued by the United States Bureau of Immigration and Customs Enforcement. If filed in triplicate, the original shall be delivered to the applicant as the temporary permit, the duplicate shall within seven days be sent by first class mail to the secretary of state who shall issue the official permit, and the triplicate shall be preserved for four five years by the authority issuing the permit. If the application is filed electronically, two copies shall be made and each shall be signed by the applicant. One copy shall be delivered to the applicant as the temporary permit, and the other copy shall be preserved for four five years by the authority issuing the permit.

    Section 2.  That § 23-7-8.1 be amended to read:

    23-7-8.1. The secretary of state shall prescribe the form of the permit to carry a concealed pistol and, the form of the enhanced permit to carry a concealed pistol, and the form of the gold card permit to carry a concealed pistol pursuant to § 23-7-8. Each permit shall list the applicant's name, address, and the expiration date, and the issuance date of the permit. The enhanced permit to carry a concealed pistol must clearly designate that the permit is enhanced and the gold card permit must clearly designate that it is a gold card permit to carry a concealed pistol. The holder of a permit may carry a concealed pistol anywhere in South Dakota except in any licensed on-sale malt beverage or alcoholic beverage establishment that derives over one-half of its total income from the sale of malt

or alcoholic beverages. Nothing in this section prevents law enforcement officers, parole agents, security guards employed on the premises, and other public officials with the written permission of the sheriff from carrying concealed weapons in the performance of their duties or prevents home or business owners from carrying concealed weapons on their property pursuant to § 22-14-11.

    Section 3. That § 23-7-54 be amended to read:

    23-7-54. The sheriff shall retain the application and other documents until the sheriff receives the results of the background checks required pursuant to § 23-7-53. Within seven days following receipt of a confirmation that the applicant passed each criminal background check required pursuant to this section and § 23-7-53, the sheriff shall file the application with the secretary of state pursuant to § 23-7-8.

    If the applicant submits an application pursuant to § 23-7-53, meets the requirements of § 23-7-7.1, is not otherwise prohibited by state law, 18 U.S.C. 922(g) as amended to October 26, 2005, or 18 U.S.C. 922(n) as amended to October 26, 2005, from receiving, possessing, or transporting a firearm, passes the required fingerprint background check, and passes a National Instant Criminal Background Check, the sheriff of the county where the applicant submitted the application shall, within thirty days of application, issue the applicant a temporary enhanced permit to carry a concealed pistol. The temporary permit must clearly designate that the permit is enhanced.

    Section 4. That § 23-7-57 be amended to read:

    23-7-57. Unless otherwise specified, the references, rights, and responsibilities in this chapter related to a permit to carry a concealed pistol also apply to an enhanced permit to carry a concealed pistol and a gold card permit to carry a concealed pistol.

    Section 5. That § 25-10-24 be amended to read:

    25-10-24. The court may require the defendant to surrender any dangerous weapon or any concealed pistol permit issued under 23-7 in his the defendant's possession to local law enforcement.

    Section 6. That § 23-7-8.9 be amended to read:

    23-7-8.9. The provisions of §§ 23-7-8.6 to 23-7-8.9, inclusive, do specifically prohibit any law enforcement officer from retaining any notes, data, or pieces of information, either collectively or individually, unless the retention of such notes, data, or pieces of information is pertinent to a specific ongoing investigation or prosecution. Access by law enforcement to information necessary to perform a periodic National Instant Criminal Background Check of gold card or enhanced pistol permit holders under section 15 of this Act is authorized.

    Section 7. That chapter 23-7 be amended by adding a NEW SECTION to read:

    An applicant may submit an application to the sheriff of the county in which the applicant resides for a gold card permit to carry a concealed pistol. The application shall include:

            (1)    The application for the gold card permit to carry a concealed pistol;

            (2)    A copy of the applicant's fingerprints for submission to the Federal Bureau of Investigation, and any governmental agency or entity authorized to receive such information, for a state, national, and international criminal history background check;

            (3)    An authorization to run a fingerprint background check;

            (4)    A separate payment for the cost of processing the fingerprint background check; and

            (5)    A separate application fee of seventy dollars for the gold card permit to carry a concealed pistol. Thirty dollars of the fee shall be distributed to the sheriff, thirty-four dollars shall be distributed to the Department of Public Safety, and six dollars to the secretary of state to be used by the secretary of state to administer the concealed carry program.

    The sheriff shall forward the copy of the applicant's fingerprints, the applicant's authorization for processing a fingerprint background check, and the payment for the fingerprint background check to the Division of Criminal Investigation for processing.

    Section 8. That chapter 23-7 be amended by adding a NEW SECTION to read:

    The sheriff shall retain the application and other documents until the sheriff receives the results of the background checks required pursuant to section 7 of this Act. Within seven days following receipt of a confirmation that the applicant passed each criminal background check required pursuant to this section and section 7 of this Act, the sheriff shall file the application with the secretary of state pursuant to § 23-7-8.

    If the applicant submits an application pursuant to section 1 of this Act, meets the requirements of § 23-7-7.1, is not otherwise prohibited by state law, 18 U.S.C. 922(g) as amended to October 26, 2005, or 18 U.S.C. 922(n) as amended to October 26, 2005, from receiving, possessing, or transporting a firearm, passes the required fingerprint background check, and passes a National Instant Criminal Background Check, the sheriff of the county of the application shall, within thirty days of application, issue the applicant a temporary gold card permit to carry a concealed pistol. The temporary permit must clearly designate that the permit is a gold card permit.

    Section 9. That chapter 23-7 be amended by adding a NEW SECTION to read:

    The holder of the gold card permit to carry a concealed pistol may renew the permit through the sheriff of the county where the holder resides, no earlier than ninety days prior to the expiration of the permit. The holder shall pay a seventy dollar renewal fee and pass a National Instant Criminal Background Check prior to the renewal of the permit. The renewal fee shall be distributed as set forth in subdivision (5) of section 7 of this Act.

    Section 10. That chapter 23-7 be amended by adding a NEW SECTION to read:

    The gold card permit to carry a concealed pistol is valid for a period of five years from the date of issuance.

    Section 11. That chapter 23-7 be amended by adding a NEW SECTION to read:

    A gold card permit to carry a concealed pistol or an enhanced permit to carry a concealed pistol is automatically revoked upon failure to maintain the requirements under § 23-7-7.1 or if the gold card or enhanced permit holder becomes prohibited by state law, 18 U.S.C. 922(g) as amended to October 26, 2005, or 18 U.S.C. 922(n) as amended to October 26, 2005, from receiving, possessing, or transporting a firearm.

    Upon such occurrence, the permit holder shall immediately return the gold card or enhanced concealed pistol permit to the county sheriff of the permit holder's county of residence. If the permit has not been returned, upon learning that a permit holder is ineligible for a gold card or enhanced permit for any violent crime or for a crime punishable by more than one year of incarceration, the sheriff of the permit holder's county of residence shall secure the possession and return of the gold card or enhanced permit forthwith. For any other disqualifying offense set forth above the sheriff of the permit holder's county of residence shall secure the possession and return of the gold card or enhanced permit as soon as reasonably possible after being notified of the holders ineligibility. A gold card or enhanced permit holder whose permit has been secured by law enforcement under this section may petition the circuit court for the return of the gold card or enhanced permit if the permit

holder believes the gold card or enhanced permit was unlawfully secured. Law enforcement may communicate with federally licensed firearms dealers relative to revoked gold card or enhanced permits.

    Section 12. That chapter 23-7 be amended by adding a NEW SECTION to read:

    It is a Class 1 misdemeanor for anyone that is ineligible to possess a gold card or enhanced concealed pistol permit to possess or present a revoked gold card or enhanced concealed pistol permit.

    Section 13. That chapter 23-7 be amended by adding a NEW SECTION to read:

    If any person is convicted of any offense which results in the automatic revocation of a gold card or enhanced permit to carry a concealed pistol under this chapter, the court entering the conviction shall require the surrender to the court of all gold card or enhanced concealed pistol permits held by the person convicted. The court shall forward all gold card and enhanced concealed pistol permits to the sheriff of the defendant's county of residence.

    Section 14. That chapter 23-7 be amended by adding a NEW SECTION to read:

    It is a Class 1 misdemeanor for a person to fail or refuse to surrender to the county sheriff of the person's county of residence, upon lawful demand, a gold card or enhanced permit to carry a concealed pistol that has been revoked. If a person fails to return a gold card or enhanced permit to the sheriff of the person's county of residence after lawful demand, the sheriff shall direct a law enforcement officer to secure its possession and return in compliance with section 11 of this Act. The law enforcement officer shall receive ten dollars and fifty cents plus mileage, at a rate established by the State Board of Finance, to be paid by the violator. Failure to pay the fee and mileage is a Class 2 misdemeanor.

    Section 15. That chapter 23-7 be amended by adding a NEW SECTION to read:

    Law enforcement may periodically perform a National Instant Criminal Background Check of gold card or enhanced concealed pistol permit holders for the purposes of determining whether the permit holder remains eligible for the permit under § 23-7-7.1, 18 U.S.C. 922(g) as amended to October 26, 2005, and 18 U.S.C. 922(n) as amended to October 26, 2005.

    Section 16. The Act is effective January 1, 2017.

     Signed March 16, 2016
_______________
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CHAPTER 133

(HB 1125)

Concealed carry permit
related to the restoration of civil rights, limited.


        ENTITLED, An Act to limit the ability of a person to obtain a concealed pistol permit related to the restoration of civil rights and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 23-7-52 be repealed.



    Section 2. Whereas, this Act is necessary for the immediate preservation of the public peace, health, or safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 10, 2016
_______________
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CRIMINAL PROCEDURE

_______________


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CHAPTER 134

(SB 97)

Automatic removal of petty offenses, municipal ordinance, and
Class 2 misdemeanor convictions from background check records.


        ENTITLED, An Act to provide for the automatic removal of all petty offenses, municipal ordinance violations, and Class 2 misdemeanor charges or convictions from background check records after ten years under certain conditions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 23A-3 be amended by adding a NEW SECTION to read:

    Any charge or conviction resulting from a case where a petty offense, municipal ordinance violation, or a Class 2 misdemeanor was the highest charged offense shall be automatically removed from a defendant's public record after ten years if all court-ordered conditions on the case have been satisfied. However, the case record will remain available to court personnel or as authorized by order of the court.

     Signed March 10, 2016
_______________
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CHAPTER 135

(SB 79)

Professionals authorized to perform examinations
for a plea of guilty but mentally ill.


        ENTITLED, An Act to expand the list of professionals authorized to perform certain examinations required for a plea of guilty but mentally ill.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 23A-7-16 be amended to read:

    23A-7-16. In addition to the requirements of §§ 23A-7-4 and 23A-7-5, if a defendant charged

with a felony pleads guilty but mentally ill, the court may not accept the plea until the defendant has been examined by a licensed psychiatrist or a court-approved licensed psychologist and the court has examined the psychiatric reports. The court shall hold a hearing on the defendant's mental condition and, if there is a factual basis on which the court can conclude that the defendant was mentally ill at the time of the offense, the plea shall be accepted.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\136.wpd
CHAPTER 136

(HB 1167)

Use of a suspended imposition of sentence
for a misdemeanor and a felony limited.


        ENTITLED, An Act to revise certain provisions regarding the use of a suspended imposition of sentence for a misdemeanor and a felony.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 23A-27-13 be amended to read:

    23A-27-13. Upon receiving a verdict or plea of guilty for a misdemeanor or felony not punishable by death or life imprisonment by a person never before convicted of a crime which at the time of conviction thereof would constitute a felony in this state, a court having jurisdiction of the defendant, if satisfied that the ends of justice and the best interest of the public as well as the defendant will be served thereby, may, without entering a judgment of guilt, and with the consent of the defendant, suspend the imposition of sentence and place the defendant on probation for such period and upon such terms and conditions as the court may deem best. No person who has previously been granted, whether in this state or any other, a suspended imposition of sentence for a felony, is eligible to be granted a second suspended imposition of sentence for a felony. A court may revoke such suspension at any time during the probationary period and impose and execute sentence without diminishment or credit for any of the probationary period.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Upon receiving a verdict or plea of guilty for a misdemeanor, a court having jurisdiction of the defendant, if satisfied that the ends of justice and the best interest of the public as well as the defendant will be served thereby, may, without entering a judgment of guilt, and with the consent of the defendant, suspend the imposition of sentence and place the defendant on probation for such period and upon such terms and conditions as the court may deem best. No person who has previously been granted, whether in this state or any other, a suspended imposition of sentence for a misdemeanor, is eligible to be granted a second suspended imposition of sentence for a misdemeanor. A court may revoke such suspension at any time during the probationary period and impose and execute sentence without diminishment or credit for any of the probationary period.

     Signed March 14, 2016
_______________
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CHAPTER 137

(SB 31)

Sentencing and supervision of prison inmates and parolees,
authority clarified.


        ENTITLED, An Act to revise certain provisions regarding the sentencing and supervision of prison inmates and parolees with suspended sentences.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 23A-27-19 be amended to read:

    23A-27-19. The sentencing court retains jurisdiction for the purpose of suspending any such sentence for a period of two years from the effective date of the judgment of conviction, notwithstanding the fact that the time for an appeal from such judgment is limited to a shorter period of time. The court shall notify the attorney who prosecuted such the person or shall notify the successor in office of such the prosecuting attorney at least fourteen days in advance of such the suspension. Such notice Notice shall be provided to any victim by such the prosecuting attorney or the successor in office pursuant to the provisions of § 23A-27-1.2. Any person whose sentence is suspended pursuant to this section is under the supervision of the Board of Pardons and Paroles, except as provided in § 23A-27-18.2. The board is charged with the responsibility for enforcing the conditions imposed by the sentencing judge, and the board retains jurisdiction to revoke the suspended portion of the sentence for violation of the terms of parole or the terms of the suspension.

    Section 2. That chapter 23A-27 be amended by adding a NEW SECTION to read:

    In addition to any conditions imposed by the sentencing judge, an inmate under the supervision of the Department of Corrections and the Board of Pardons and Paroles pursuant to § 23A-27-18.4 or 23A-27-19 shall maintain a good disciplinary record and comply with all programming required by the Department of Corrections and the Board of Pardons and Paroles. A suspended sentence may be revoked by the Board of Pardons and Paroles for failure to comply with these requirements.

    Section 3. That chapter 23A-27 be amended by adding a NEW SECTION to read:

    If an inmate is under the supervision of the Department of Corrections and the Board of Pardons and Paroles as directed in §§ 23A-27-18.4 and 23A-27-19, the inmate is considered a parolee and is governed by the supervision and revocation provisions of chapters 24-15 and 24-15A.

    Section 4. That § 22-6-11 be amended to read:

    22-6-11. The sentencing court shall sentence an offender convicted of a Class 5 or Class 6 felony, except those convicted under §§ 22-11A-2.1, 22-18-1, 22-18-1.05, 22-18-26, 22-19A-1, 22-19A-2, 22-19A-3, 22-19A-7, 22-19A-16, 22-22A-2, 22-22A-4, 22-24A-3, 22-22-24.3, 22-24-1.2, 22-24B-2, 22-24B-12, 22-24B-12.1, 22-24B-23, 22-42-7, subdivision 24-2-14(1), 32-34-5, and any person ineligible for probation under § 23A-27-12, to a term of probation. If the offender is under the supervision of the Department of Corrections, the court shall order a fully suspended penitentiary sentence pursuant to § 23A-27-18.4. The sentencing court may impose a sentence other than probation or a fully suspended penitentiary sentence if the court finds aggravating circumstances exist that pose a significant risk to the public and require a departure from presumptive probation under this section. If a departure is made, the judge shall state on the record at the time of sentencing the aggravating circumstances and the same shall be stated in the dispositional order. Neither this section nor its application may be the basis for establishing a constitutionally protected liberty,

property, or due process interest.

     Signed March 14, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\138.wpd
CHAPTER 138

(HB 1088)

Civil forfeiture provisions consolidated.


        ENTITLED, An Act to revise and consolidate certain civil forfeiture provisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    All real property, including any right, title, and interest in the whole of any platted lot or tract of land which is measured in three hundred twenty acre increments, or all of any smaller amount and any appurtenances or improvements, which is used, or intended to be used, in any manner or part, to commit or to facilitate the commission of a violation of any crime listed in chapters 34-20B or 22-24A, is subject to forfeiture under this section. Forfeiture under this Act of real property encumbered by a bona fide security interest is subject to the interest of the secured party unless the secured party had actual knowledge of the act upon which the forfeiture is based. Notice of forfeiture proceedings shall be given each owner or secured party whose right, title, or interest is of record, at the time of the seizure, with the secretary of state or the register of deeds in the county where the real property is located. A person claiming a security interest bears the burden of establishing that interest by a preponderance of the evidence. No real property may be forfeited under the provisions of this Act by reason of any act committed by a person other than an owner of the property unless that owner had actual knowledge that the real property was used or intended for use in any of the manners set forth in the chapters listed in section 20 of this Act.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding the provisions of subdivision 34-20B-70(4) or 22-24A-15(4), no conveyance used by any person as a common carrier in the transaction of business as a common carrier may be forfeited under the provisions of this Act, unless it appears that the owner or other person in charge of the conveyance was a consenting party or privy to a violation of any crime in the chapters listed in section 20 of this Act.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding the provisions of subdivision 34-20B-70(4) or 22-24A-15(4), no conveyance may be forfeited under the provisions of this Act, by reason of any act or omission established by the owner of the conveyance to have been committed or omitted by any person other than the owner while the conveyance was unlawfully in the possession of a person other than the owner in violation of the criminal laws of the United States, or of any state, or while the conveyance was rented or leased from a motor vehicle dealer or a leasing or rental agency and the dealer or agency had no knowledge that the conveyance was being used or intended for use, to transport or in any manner facilitate the commission of any crime in the chapters listed in section 20 of this Act.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding the provisions of subdivision 34-20B-70(4) or 22-24A-15(4), no conveyance

may be forfeited under the provisions of this Act, by reason of any act committed or omitted by a person other than an owner of the conveyance unless the owner knew or in the exercise of ordinary care should have known that the conveyance was being used or was intended for use to facilitate the commission of any crime in the chapters listed in section 20 of this Act.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    To the extent of the interest of an owner, a thing of value is not subject to forfeiture under this Act by reason of any act or omission that is established by the owner of the item to have been committed or omitted without the owner's knowledge or consent.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    Any victim of a crime as described in the provisions of §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, and 43-43B-1 to 43-43B-3, inclusive, is protected against loss of property through forfeiture by victim immunity as described in § 22-48-2.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    Any property subject to forfeiture under this Act may be seized by any law enforcement officer or designated agent of the Division of Criminal Investigation upon process issued by any court having jurisdiction over the property.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    The seizure of any property subject to forfeiture under this Act may be made without process issued under section 7 of this Act if:

            (1)    The seizure is incident to an arrest or a search under a search warrant or to an inspection under an administrative inspection warrant;

            (2)    The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding under this Act;

            (3)    The law enforcement officer or agent has probable cause to believe that the property is directly or indirectly dangerous to health or safety; or

            (4)    The law enforcement officer or agent has probable cause to believe that the property has been used or intended to be used in violation of crimes in the chapters listed in section 20 of this Act.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    If a seizure pursuant to section 7 or subdivisions (1), (3), or (4) of section 8 of this Act occurs, the attorney general shall institute, within sixty days of the seizure, the proceedings pursuant to sections 14 or 15 of this Act.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    No property taken or detained pursuant to this Act is replevinable or subject to an action in claim and delivery. However, the property is deemed to be in the custody of the attorney general, subject only to the orders and decrees of the court or the official having jurisdiction over the property.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    If property is seized under the provisions of this Act, the attorney general may:

            (1)    Place the property under seal;

            (2)    Remove the property to a place designated by the attorney general; or

            (3)    Take custody of the property and remove it to an appropriate location for disposition in accordance with law.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    Any property, as described in subdivisions 34-20B-70(4), (6), and (7) or 22-24A-15(4), (6), and (7), or section 1 of this Act, that is subject to a bona fide perfected security interest at the time of seizure of the personal property, at the time the offense was committed, and is forfeited under the provisions of section 7 to section 19 of this Act, inclusive, shall be taken by the attorney general subject to the security interest. The attorney general shall, within sixty days of the forfeiture of the property:

            (1)    Return the property to the possession of the secured party;

            (2)    Satisfy fully all indebtedness to the secured party secured by the property; or

            (3)    Return the property to the possession of the secured party and require the secured party to sell the property within sixty days of receipt of the property from the attorney general at public or private sale and retain all proceeds necessary to satisfy fully all indebtedness of the secured party secured by the property together with all reasonable costs of the sale and remit to the attorney general all excess proceeds within thirty days of the sale.

    If the secured party knew or should have known, that the property was being used or intended for use to facilitate in the commission of a crime, the provisions of this section do not apply to the property.

    Section 13. That the code be amended by adding a NEW SECTION to read:

    Any forfeiture proceeding is a civil action against the property seized and the standard of proof shall be preponderance of the evidence.

    Section 14. That the code be amended by adding a NEW SECTION to read:

    If property described in subdivisions 34-20B-70(2), (3), (5), (6), and (7) or 22-24A-15(2), (3), (5), (6), and (7) is seized, the attorney general shall file a summons and complaint for forfeiture of the property in circuit court for the county in which the property was seized or is being held. The proceedings shall be brought in the name of the state. The complaint shall describe the property, and state the property's location, the property's present custodian, the name of each owner if known, the name of each party in interest if known or of legal record, and allege the essential elements of the violation that is claimed to exist. The complaint shall conclude with a prayer to enforce the forfeiture. Notice of a forfeiture proceeding shall be given to each known owner and known party in interest by serving a copy of the summons and complaint in accordance with section 15 of this Act. The procedure governing the proceedings, except as provided in this section, shall be the same as that prescribed for civil proceedings by chapter 15-6.

    Section 15. That the code be amended by adding a NEW SECTION to read:

    If property described in section 1 of this Act or subdivision 34-20B-70(4) or 22-24A-15(4) is seized, the attorney general shall file a summons and complaint for forfeiture of the property in circuit court of the county in which the property was seized or is being held. The proceedings shall be brought in the name of the state. The complaint shall describe the property, and state the property's location, the property's present custodian, the name of each owner if known, the name of

each party in interest if known or of legal record, and allege the essential elements of the violation that is claimed to exist. The complaint shall conclude with a prayer to enforce the forfeiture. The procedure governing the proceedings, except as provided by this section, shall be the same as that prescribed for civil proceedings by chapter 15-6. Notice of forfeiture proceedings shall be given to each owner and party in interest whose right, title, or interest is of record as provided in section 1 of this Act or to the Department of Revenue or the Division of Aeronautics or a similar department of another state if the records are maintained in that state by serving a copy of the summons and complaint upon each known owner and known party in interest in accordance with title 15.

    Section 16. That the code be amended by adding a NEW SECTION to read:

    If a person as described in sections 14 and 15 of this Act is released on bail as provided by chapter 23A-43, a summons and complaint for forfeiture of the property may be served by mailing the summons and complaint by certified mail, no return receipt required, to the address left by the person upon release from confinement.

    Section 17. That the code be amended by adding a NEW SECTION to read:

    Within thirty days after the service of the notice pursuant to section 14 or section 15 of this Act, the owner of the seized property and any other party in interest or claimant may file a verified answer to the claims described in the complaint instituting the forfeiture proceedings.

    Section 18. That the code be amended by adding a NEW SECTION to read:

    If at the end of thirty days after the notice has been served there is no verified answer on file and no claimant has appeared to defend the complaint, the court shall order the disposition of the seized property as requested in the complaint.

    Section 19. That the code be amended by adding a NEW SECTION to read:

    If a verified answer is filed, the forfeiture proceedings shall be set for a trial on a day not more than one hundred eighty days from the date of the filing. Any party may demand a trial by jury for the forfeiture proceedings pursuant to subsection 15-6-38(b). At the trial, the state shall establish probable cause for instituting the forfeiture action following which any owner, party in interest, or claimant who has filed a verified answer has the burden of proving that the property seized is not subject to forfeiture under this Act. If the court or a jury finds that the property is not subject to forfeiture under this Act, the court shall order the property released to the owner, party in interest, or claimant according to the person's right, title, or interest. The court shall order the property forfeited if the court or a jury determines that the property was subject to forfeiture.

    Section 20. That the code be amended by adding a NEW SECTION to read:

    If property is forfeited under this Act, the attorney general may:

            (1)    Retain the property for official use;

            (2)    Sell any forfeited property which is not required to be destroyed by law and which is not harmful to the public, provided that the proceeds be disposed of for payment of all proper expenses of the proceedings for forfeiture and sale including expenses of seizure, maintenance of custody, advertising, and court costs. All money seized or remaining proceeds from the sale of any forfeited property shall be paid into the following funds:

            (a)    If seized pursuant to a violation of chapters 34-20B or 22-42, proceeds shall go to the drug control fund;

            (b)    If seized pursuant to a violation of chapters 22-24A, 22-23, 22-19A, 22-24B, 43-

43B, or 23A-27, proceeds shall be used to reimburse the actual costs of the criminal investigation and prosecution, and any amount over those costs shall be used to satisfy any civil judgments received by the victims. All remaining proceeds shall be paid to the South Dakota internet crimes against children fund; and

            (c)    If not otherwise specified by this Act, proceeds shall go to the general fund; or

            (3)    If property is seized pursuant to a violation of chapters 34-20B or 22-42, the attorney general may forward it to the Division of Criminal Investigation for disposition. Such disposition may include delivery for medical or scientific use to any federal or state agency under regulations of the United States attorney general.

    Section 21. That § 34-20B-70 be amended to read:

    34-20B-70. The following are subject to forfeiture pursuant to this Act and no property right exists in them:

            (1)    All controlled drugs and substances and marijuana which have been manufactured, distributed, dispensed, or acquired in violation of the provisions of this chapter or chapter 22-42;

            (2)    All raw materials, products, and equipment of any kind which are used or intended for use, in manufacturing, compounding, processing, importing, or exporting any controlled drug or substance or marijuana in violation of the provisions of this chapter or chapter 22-42;

            (3)    All property which is used, or intended for use, as a container for property described in subdivisions (1) and (2);

            (4)    All conveyances including aircraft, vehicles, or vessels, which transport, possess, or conceal, or which are used, or intended for use, to transport, or in any manner facilitate the transportation, sale, receipt, possession, or concealment of marijuana in excess of one-half pound or any quantity of any other property described in subdivision (1) or (2), except as provided in §§ 34-20B-71 to 34-20B-73, inclusive. This subdivision includes those instances in which a conveyance transports, possesses or conceals marijuana or a controlled substance as described herein without the necessity of showing that the conveyance is specifically being used to transport, possess, or conceal or facilitate the transportation, possession, or concealment of marijuana or a controlled substance in aid of any other offense;

            (5)    All books, records, and research, including formulas, microfilm, tapes, and data which are used, or intended for use, in violation of this chapter;

            (6)    Any funds or other things of value used for the purposes of unlawfully purchasing, attempting to purchase, distributing, or attempting to distribute any controlled drug or substance or marijuana;

            (7)    Any assets, interest, profits, income, and proceeds acquired or derived from the unlawful purchase, attempted purchase, distribution, or attempted distribution of any controlled drug or substance or marijuana.

    Property described in subdivision (1) shall be deemed contraband and shall be summarily forfeited to the state, property described in subdivisions (2), (3), (5), (6), and (7) is subject to forfeiture under the terms of section 14 of this Act, and property described in subdivision (4) is subject to forfeiture under the terms of section 15 of this Act.

    Section 22. That § 22-24A-15 be amended to read:

    22-24A-15. Any person who is convicted of an offense under §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, 43-43B-1 to 43-43B-3, inclusive, and 22-23-2, 22-23-8, and 22-23-9 shall forfeit to the state, pursuant to this Act, the person's interest in the following and no property right exists in them:

            (1)    Any photograph, film, videotape, book, digital media or visual depiction that has been manufactured, distributed, purchased, possessed, acquired, or received in violation of §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (2)    Any material, product, and equipment of any kind that is used or intended for use in manufacturing, processing, publishing, selling, possessing, or distributing any visual depiction proscribed by §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (3)    Any property that is used, or intended for use, as a container for property described in subdivisions (1) and (2) of this section, including any computers and digital media;

            (4)    Any conveyances including aircraft, vehicles, or vessels, that transport, possess, or conceal, or that is used, or intended for use, to transport, or in any manner facilitate any activity proscribed under §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (5)    Any book, record, and research, including microfilm, tape, and data that is used, or intended for use, in violation of §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, and 43-43B-1 to 43-43B-3, inclusive;

            (6)    Any funds or other things of value used for the purposes of unlawfully carrying out any activity proscribed by §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, 43-43B-1 to 43-43B-3, inclusive, and 22-23-2, 22-23-8, and 22-23-9; and

            (7)    Any asset, interest, profit, income, and proceed acquired or derived from the unlawful activity proscribed by §§ 22-19A-1, 22-24A-1 to 22-24A-20, inclusive, 22-24B-1, 22-49-1 to 22-49-3, inclusive, 23A-27-14.1, 43-43B-1 to 43-43B-3, inclusive, and 22-23-2, 22-23-8, and 22-23-9.

    Any property described in subdivision (1) of this section shall be deemed contraband and shall be summarily forfeited to the state. Any other property seized and forfeited shall be used to reimburse the actual costs of the criminal investigation and prosecution. Any amount over and above the amount necessary to reimburse for the investigation and prosecution shall be used to satisfy any civil judgments received by victims. All remaining proceeds from the sale of any forfeited property shall be paid into the South Dakota internet crimes against children fund. Property described in subdivisions (2), (3), (5), (6), and (7) is subject to forfeiture under the terms of section 14 of this Act, and property described in subdivision (4) is subject to forfeiture under the terms of section15 of this Act.

    Section 23. That § 34-20B-70.1 be repealed.

    Section 24. That § 34-20B-71 be repealed.

    Section 25. That § 34-20B-72 be repealed.

    Section 26. That § 34-20B-73 be repealed.



    Section 27. That § 34-20B-74 be repealed.

    Section 28. That § 34-20B-75 be repealed.

    Section 29. That § 34-20B-76 be repealed.

    Section 30. That § 34-20B-77 be repealed.

    Section 31. That § 34-20B-78 be repealed.

    Section 32. That § 34-20B-79 be repealed.

    Section 33. That § 34-20B-80 be repealed.

    Section 34. That § 34-20B-84 be repealed.

    Section 35. That § 34-20B-85 be repealed.

    Section 36. That § 34-20B-86 be repealed.

    Section 37. That § 34-20B-87 be repealed.

    Section 38. That § 34-20B-88 be repealed.

    Section 39. That § 34-20B-89 be repealed.

    Section 40. That § 22-24A-15.1 be repealed.

    Section 41. That § 22-24A-15.2 be repealed.

    Section 42. That § 22-24A-15.3 be repealed.

    Section 43. That § 22-24A-15.4 be repealed.

    Section 44. That § 22-24A-15.5 be repealed.

    Section 45. That § 22-24A-21 be repealed.

    Section 46. That § 22-24A-22 be repealed.

    Section 47. That § 22-24A-23 be repealed.

    Section 48. That § 22-24A-24 be repealed.

    Section 49. That § 22-24A-25 be repealed.

    Section 50. That § 22-24A-26 be repealed.

    Section 51. That § 22-24A-27 be repealed.

    Section 52. That § 22-24A-28 be repealed.

    Section 53. That § 22-24A-29 be repealed.

    Section 54. That § 22-24A-30 be repealed.


    Section 55. That § 22-24A-31 be repealed.

    Section 56. That § 22-24A-32 be repealed.

    Section 57. That § 22-24A-33 be repealed.

    Section 58. That § 22-24A-34 be repealed.

     Signed March 25, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\138.wpd

PENAL INSTITUTIONS, PROBATION AND PAROLE

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\139.wpd
CHAPTER 139

(HB 1236)

A halfway house defined.


        ENTITLED, An Act to define a halfway house.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The term, halfway house, means a residential facility that provides services and supervision of inmates for the purpose of reintegrating inmates into the community. Each halfway house shall be operated by a unit of local government, the Department of Corrections, or any private individual, partnership, corporation, or association. A halfway house may provide:

            (1)    Monitoring of the activities of inmates;

            (2)    Oversight of victim restitution and community service by inmates;

            (3)    Day reporting programs; and

            (4)    Programs and services to aid inmates in obtaining and holding regular employment, enrolling in and maintaining academic courses, participating in vocational training programs, utilizing the resources of the community, meeting the personal and family needs of inmates, obtaining appropriate treatment for inmates, and participating in whatever specialized programs exist within the community and other services and programs as may be appropriate to aid in inmate rehabilitation and public safety.

     Signed March 22, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\139.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\140.wpd
CHAPTER 140

(SB 50)

Fees collected by the Department of Corrections reallocated.


        ENTITLED, An Act to revise the allocation of certain fees collected by the Department of Corrections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 24-8-11 be amended to read:

    24-8-11. The secretary of corrections shall determine the amount to be paid for board and room by each work release inmate. If special circumstances warrant or for a just and reasonable cause, the secretary of corrections may waive the payment of board and room charges.

    All the board and room charges paid to the Department of Corrections for confinement shall be placed deposited in a fund within the Department of Corrections the general fund.

    Section 2. That § 24-7-9 be amended to read:

    24-7-9. If the secretary of corrections and the Governor determine that the balance in the prison industries revolving fund is greater than the needs of the prison industries, they may jointly authorize transfer of the unneeded balance to the general fund of the state. At the end of the fiscal year the state treasurer shall transfer any cash balance in excess of five hundred thousand dollars from the prison industries revolving fund to the general fund.

    Section 3. That § 1-15-13 be amended to read:

    1-15-13. The Department of Corrections may, subject to chapter 4-8B, accept and control on behalf of the institutions of this state under its the department's supervision:

            (1)    Any federal funds, grants-in-aid, subventions, or other financial aids that may be made available to such institutions for grants, program expansion, establishing institutes or instructional centers, or any other program made available to them the institutions;

            (2)    Any federal funds which may become available for equipment, personnel or administrative salaries, educational services, buildings, building repairs and additions, or any other institutional program, improvement, or expansion.

    The state treasurer shall receive such sums as may be allotted to the Department of Corrections department for institutions under its the department's jurisdiction, for any purpose, from the United States government. Such donations and allotments shall be placed in a special fund available to the institution designated.

    The state auditor shall draw warrants upon the from the special fund herein provided for upon presentation of vouchers duly approved by the secretary of corrections. Notwithstanding any other provision of this section, any federal funds received for the reimbursement of services provided by the department shall be deposited in the general fund.

    Section 4. That § 1-15-10.2 be amended to read:

    1-15-10.2. The expenses for such support, maintenance, care, and treatment as agreed upon may

not be less than an amount required to compensate the State of South Dakota for the total cost thereof to the state. Such The compensation when received pursuant to this section shall be deposited with the state treasurer and credited to in the funds of the institution affected, as directed by the secretary of corrections and shall be expended for the same purposes and in the same manner as other funds credited to such institution are expended general fund.

     Signed March 9, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\140.wpd

DOMESTIC RELATIONS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\141.wpd
CHAPTER 141

(HB 1063)

Notice of relocation of a minor child
when a protection order is in place.


        ENTITLED, An Act to revise provisions regarding required notice of relocation of a minor child when a protection order is in place.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 25-4A-17 be amended to read:

    25-4A-17. If an existing custody order or other enforceable agreement does not expressly govern the relocation of the principal residence of a child, a parent who intends to change his or her principal residence shall, provide reasonable written notice by certified mail or admission of service to the other legal parent of the child. Reasonable notice is notice that is given at least forty-five days before relocation or a shorter period if reasonable under the specific facts giving rise to the relocation. Proof of the notice shall be filed with the court of record unless notice is waived by the court.

    No notice need be provided pursuant to this section if:

            (1)    The relocation results in the child moving closer to the noncustodial parent; or

            (2)    The relocation is within the boundaries of the child's current school district; or

            (3)    There is an existing valid protection order in favor of the child or the custodial parent against the noncustodial parent unless the noncustodial parent has a valid order for parenting time established either in the protection order file or another custody proceeding subsequent to the entry of the protection order; or

            (4)    Within the preceding twelve months, the nonrelocating parent has been convicted of violation of a protection order, criminal assault, child abuse, or other domestic violence and either the child or the custodial parent was the victim of the crime or violation unless the noncustodial parent has a valid order for parenting time established subsequent to the conviction.

    Section 2. That § 25-4A-18 be amended to read:

    25-4A-18. The notice required in § 25-4A-17 shall contain the following:

            (1)    The address and telephone number, if known, of the new residence;

            (2)    The purpose for relocating;

            (3)    Why the relocation is in the best interest of the child; and

            (4)    The relocating party's proposed visitation plan for the nonrelocating parent upon relocation.

    If a relocating parent is giving notice of relocation in compliance with subdivisions 25-4A-17(3) or (4), the address requirement in subdivision (1) of this section is fulfilled if the notice contains the city and state of the new residence.

     Signed February 18, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\141.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\142.wpd
CHAPTER 142

(HB 1105)

Protection orders, court may grant continuance.


        ENTITLED, An Act to give the court discretion to grant a continuance of a protection order in certain situations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 25-10-7 be amended to read as follows:

    25-10-7. An ex parte temporary protection order is effective for a period of thirty days except as provided in § 25-10-7.1 unless for good cause the court grants a continuance. No continuance may exceed thirty days unless the court finds good cause for the additional continuance and:

            (1)    The parties stipulate to an additional continuance; or

            (2)    The court finds that law enforcement is unable to locate the respondent for purposes of service of the ex parte protection order.

    If a continuance is granted, the court by order shall extend the ex parte temporary protection order until the rescheduled hearing date. The respondent shall be personally served forthwith without delay with a copy of the ex parte order along with a copy of the petition, affidavit, and notice of the date set for the hearing. The ex parte order shall be served without delay under the circumstances of the case including service of the ex parte order on a Sunday or holiday. The law enforcement agency serving the order shall notify the petitioner by telephone or written correspondence when the order is served if the petitioner has provided to the law enforcement agency either a telephone number or address, or both, where the petitioner may be contacted. The law enforcement agency and any officer of the law enforcement agency is immune from civil and criminal liability if the agency or any such the officer makes a good faith attempt to notify the petitioner in a manner consistent with the provisions of this section.

    Section 2. That § 22-19A-12 be amended to read:


    22-19A-12. If an affidavit filed with an application under § 22-19A-8 alleges that immediate and irreparable injury, loss, or damage is likely to result before an adverse party or the party's attorney can be heard in opposition, the court may grant an ex parte temporary protection order pending a full hearing and granting relief as the court deems proper, including an order restraining any person from committing acts of stalking or physical injury as a result of an assault or a crime of violence as defined in subdivision 22-1-2(9). An ex parte temporary protection order is effective for a period of thirty days unless for good cause the court grants a continuance. No continuance may exceed thirty days unless the court finds good cause for the additional continuance and:

            (1)    The parties stipulate to an additional continuance; or

            (2)    The court finds that law enforcement is unable to locate the respondent for purposes of service of the ex parte protection order.

    If a continuance is granted, the court by order shall extend the ex parte temporary protection order until the rescheduled hearing date. The respondent shall be personally served forthwith without delay with a copy of the ex parte order along with a copy of the petition, affidavit, and notice of the date set for the hearing.

     Signed February 25, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\142.wpd

MINORS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\143.wpd
CHAPTER 143

(SB 22)

Emergency medical responders added to mandatory reporters list.


        ENTITLED, An Act to add emergency medical technicians and paramedics to the list of mandatory reporters, and to update cross references in the section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 26-8A-3 be amended to read:

    26-8A-3. Any physician, dentist, doctor of osteopathy, chiropractor, optometrist, emergency medical technician, paramedic, mental health professional or counselor, podiatrist, psychologist, religious healing practitioner, social worker, hospital intern or resident, parole or court services officer, law enforcement officer, teacher, school counselor, school official, nurse, licensed or registered child welfare provider, employee or volunteer of a domestic abuse shelter, employee or volunteer of a child advocacy organization or child welfare service provider, chemical dependency counselor, coroner, or any safety-sensitive position as defined in subdivision 23-3-64(2) § 3-6C-1, who has reasonable cause to suspect that a child under the age of eighteen has been abused or neglected as defined in § 26-8A-2 shall report that information in accordance with §§ 26-8A-6, 26-8A-7, and 26-8A-8. Any person who intentionally fails to make the required report is guilty of a Class 1 misdemeanor. Any person who knows or has reason to suspect that a child has been abused or neglected as defined in § 26-8A-2 may report that information as provided in § 26-8A-8.

     Signed March 11, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\143.wpd



Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\144.wpd
CHAPTER 144

(HB 1021)

Central registry for abuse and neglect,
who may obtain request to check the registry.


        ENTITLED, An Act to allow child advocacy centers and tribal agencies that provide child placement services to obtain results from a check of the central registry for abuse and neglect.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 26-8A-12.2 be amended to read:

    26-8A-12.2. Upon receipt of names of current or potential employees or volunteers from the Juvenile Division of the Department of Corrections, any adolescent treatment program operated by the Department of Human Services or the Department of Social Services, any entity recognized as administering a CASA program as provided in § 16-2-51, any nationally accredited child advocacy center recognized by the Department of Social Services, or a court considering appointment of a guardian ad litem for a child in a proceeding pursuant to chapter 26-8A, the Department of Social Services shall compare the names to the central registry for abuse and neglect and report any findings to the requesting program director, to the Bureau of Human Resources human resource manager, child advocacy center, or to the court. Any potential employee or volunteer under this section shall give written consent prior to before completion of the abuse and neglect screening. Failure to submit to abuse and neglect screening disqualifies an applicant from employment or appointment.

    Section 2. That § 26-8A-12.3 be amended to read:

    26-8A-12.3. Upon the receipt of a written request from a licensed child welfare agency or a private child welfare agency whose licensure has been waived pursuant to § 26-6-9, the Department of Social Services shall conduct a check of the central registry for child abuse and neglect for kinship, foster care, adoption, or employment applicants and shall provide the results to the requesting agency. Further, upon written request from an agency that provides child welfare services or child placement services for a federally recognized tribe, the department shall conduct a check of the central registry for child abuse and neglect for kinship, foster care, or adoption applicants and shall provide the results to the requesting tribal agency. Prior to Before the department conducting conducts any check of the central registry for child abuse and neglect pursuant to this section, the requesting agency shall provide to the department a consent signed by the applicant for kinship, foster care, adoption, or employment.

     Signed February 12, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\144.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\145.wpd
CHAPTER 145

(HB 1022)

Abused or neglected children,
planned permanent living arrangement.


        ENTITLED, An Act to revise certain provisions related to the use of another planned permanent living arrangement as a permanency plan for certain children.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 26-8A-21.2 be amended to read:

    26-8A-21.2. If the court has determined that reasonable efforts to return an adjudicated abused or neglected child to the home of the parent, guardian, or custodian are not appropriate, a permanency hearing shall be held within thirty days after the determination. At the permanency hearing, the court shall determine whether and when if:

            (1)    The child should be placed for adoption. If the court determines that the child should be placed for adoption, the state shall notify the parties of its intent to seek the termination of parental rights if such notice has not already been provided;

            (2)    The child should be referred for legal guardianship;

            (3)    The child should be placed permanently with a fit and willing relative; or

            (4)    A Only in the case of a child who is sixteen years of age or older, a compelling reason is documented with the court that none of the permanent plans listed in this section would be in the best interest of the child, and the child should be placed in another planned permanent living arrangement. At each permanency hearing for a child placed in another planned permanent living arrangement, the court shall ask the child about the desired permanency outcome for the child and make a judicial determination stating the reasons that another planned permanent living arrangement is the best permanency plan for the child.

    The court may immediately proceed with a final dispositional hearing if proper notice of the hearing has been given.

    Section 2. That § 26-8A-22 be amended to read:

    26-8A-22. On completion of the dispositional phase of the proceeding, the court shall enter a final decree of disposition. If the final decree of disposition does not terminate parental rights, the decree shall include one or more of the following provisions which the court finds appropriate as the least restrictive alternative available:

            (1)    The court may place the child in the custody of one or both of the child's parents, a guardian, a relative of the child or another suitable person, or a party or agency, with or without protective supervision, or the Department of Social Services, subject to the conditions and the length of time that the court deems necessary or appropriate. If the court returns custody to the child's parent, guardian, or custodian, such return of custody may be with supervision during which the court may require the parent, guardian, custodian, and any other adult residing in the home, to cooperate with home visits by the department and may require the parent, guardian, custodian, and any other adult residing in the home, to submit, at the request of the department, to tests for alcohol, marijuana, or any controlled drug or substance. If the adjudication of abuse or neglect was related to the use of alcohol, marijuana, or any controlled drug or substance, the parent, guardian, or custodian, and any other adult residing in the home, may be required, in those areas where such testing is available, to submit to regular tests for alcohol, marijuana, or any controlled drug or substance. If a positive test for alcohol, marijuana, or any controlled drug or substance is obtained, or the person fails to submit to the test as required, the department may immediately remove the child from the physical custody of the parent, guardian, custodian, or any other adult residing in the home whose test was positive or who failed to submit to the test, without prior court order subject to a review hearing, which may be telephonic, within forty-eight hours excluding Saturdays, Sundays, and court holidays. As used herein in this section, any controlled drug or substance means a

controlled drug or substance which was not lawfully prescribed by a practitioner as authorized by chapters 22-42 and 34-20B;

            (2)    The court after determining that a compelling reason exists to place the child who is sixteen years of age or older in another planned permanent living arrangement rather than with a relative or with a legal guardian other than the department may place the child in the custody of the department or a child placement agency, with or without guardianship of the child, until the child attains the age of majority or until an earlier date or event as determined by the court;

            (3)    The court may order that the child be examined or treated by a physician or by a qualified mental health professional or that the child receive other special care and may place the child in a suitable facility for such purposes under conditions that the court deems necessary or appropriate. On completion of the examination, treatment, or hospitalization and on a full report to the court, the court shall conduct a supplemental dispositional hearing or hearings and shall make disposition of the child as otherwise provided in this section or, if the evidence shows need, the court may consider termination of parental rights as an appropriate possible alternative in keeping with the best interests and welfare of the child.

    If disposition of the child under this section involves the removal from or nonreturn of the child to the home of the child's parents, guardian, or custodian and placement of the child in the custody of the department for placement in foster care, the court shall include in the decree a written judicial determination that continuation of the child's placement in the home of the child's parents, guardian, or custodian would be contrary to the welfare of the child and that reasonable efforts were made by the department to prevent or eliminate the need for removal of the child from the home. In no case may a child remain in foster care for a period in excess of twelve months from the time the child entered foster care without the court holding a permanency hearing and making a dispositional decree. The court shall review the child's permanency status and make a dispositional decree every twelve months thereafter as long as the child continues in the custody of the department. The court shall determine whether the state has made reasonable efforts to finalize the permanency plan that is in effect. That determination shall be included in the dispositional decree.

    Section 3. That § 26-8A-26 be amended to read:

    26-8A-26. If an adjudicated, abused, or neglected child whose parental rights have not been terminated has been in the custody of the Department of Social Services and it appears at a dispositional or review hearing that all reasonable efforts have been made to rehabilitate the family, that the conditions which led to the removal of the child still exist, and there is little likelihood that those conditions will be remedied so the child can be returned to the custody of the child's parents, the court shall affirmatively find that good cause exists for termination of the parental rights of the child's parents and the court shall enter an order terminating parental rights. If the court does not find at the hearing, which shall be conducted in the same manner as a dispositional hearing, that good cause exists for termination of parental rights, the court may make further disposition of the child as follows:

            (1)    Return custody of the child to the child's parents, guardian, or custodian, with or without supervision during which the court may require the parent, guardian, custodian, and any other adult residing in the home, to cooperate with home visits by the department and may require the parent, guardian, custodian, and any other adult residing in the home, to submit, at the request of the department, to tests for alcohol, marijuana, or any controlled drug or substance. If the adjudication of abuse or neglect was related to the use of alcohol, marijuana, or any controlled drug or substance, the parent, guardian, or custodian, and any other adult residing in the home, may be required, in those areas where such testing is available, to submit to regular tests for alcohol, marijuana, or any controlled drug or substance. If a positive test for alcohol, marijuana, or any controlled drug or substance is

obtained, or if the person fails to submit to the test as required, the department may immediately remove the child from the physical custody of the parent, guardian, custodian, or any other adult residing in the home whose test was positive or who failed to submit to the test, without prior court order subject to a review hearing, which may be telephonic, within forty-eight hours excluding Saturdays, Sundays, and court holidays. As used herein, any controlled drug or substance means a controlled drug or substance which was not lawfully prescribed by a practitioner as authorized by chapters 22-42 and 34-20B;

            (2)    Continue foster care placement of the child for a specified period of time, and, if the child is sixteen years of age or older, direct the department to determine the services needed to assist the child to make the transition from foster care to independent living and, if appropriate, provide a plan for independent living for the child;

            (3)    Place the child who is sixteen years of age or older in the custody of the department or a child placement agency, with or without guardianship of the child, in another planned permanent living arrangement following a determination that a compelling reason exists that the placement is more appropriate than adoption or with a relative or with a legal guardian other than the department and under a court-approved plan that determines visitation rights of the child's parents, guardian, or custodian. Under this subdivision, the court may retain jurisdiction of the action and proceedings for future consideration of termination of parental rights if termination of parental rights is the least restrictive alternative available in keeping with the best interests of the child.

    In no case may a child remain in foster care for a period in excess of twelve months from the time the child entered foster care without the court holding a permanency hearing and making a dispositional decree setting forth one of the above options. The court shall review the child's permanency status and make a dispositional decree every twelve months thereafter as long as the child continues in the custody of the department. The court shall determine whether the state has made reasonable efforts to finalize the permanency plan that is in effect. That determination shall be included in the dispositional decree.

     Signed February 12, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\145.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\146.wpd
CHAPTER 146

(SB 158)

Restitution in cases involving juveniles.


        ENTITLED, An Act to revise provisions related to restitution in cases involving juveniles and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 26-8C-7 be amended to read:

    26-8C-7. If a child has been adjudicated as a delinquent child, the court shall enter a decree of disposition according to the least restrictive alternative available in keeping with the best interests of the child. The decree shall contain one or more of the following:

            (1)    The court may require the child to pay restitution, as defined in subdivision 23A-28-2(4) and under conditions set by the court, if payment can be enforced without serious hardship or injustice to the child;

            (2)    The court may impose a fine not to exceed one thousand dollars;

            (2)(3)    The court may place the child on probation under the supervision of a court services officer or another designated individual pursuant to § 26-8C-14;

            (3)(4)    The court may require a child as a condition of probation to participate in a supervised community service program, if the child is not deprived of the schooling that is appropriate for the child's age, needs, and specific rehabilitative goals. The supervised community service program shall be of a constructive nature designed to promote rehabilitation, appropriate to the age level and physical ability of the child, and shall be combined with counseling by the court services officer or other guidance personnel. The supervised community service program assignment shall be made for a period of time consistent with the child's best interests, but for not more than ninety days;

            (4)(5)    The court may place the child at the Human Services Center for examination and treatment;

            (5)(6)    The court may place the child in a detention facility for not more than ninety days, which may be in addition to any period of temporary custody;

            (6)(7)    The court may place the child in an alternative educational program;

            (7)(8)    The court may order the suspension or revocation of the child's right to apply for a driving privilege, suspend or revoke an existing driving privilege, or restrict the privilege in such manner as it sees fit, including requiring that financial responsibility be proved and maintained;

            (8)(9)    The court may assess or charge costs and fees permitted by §§ 16-2-41, 23-3-52, 23A-27-26, 23A-28B-42, and 23A-27-27 against the child, parent, guardian, custodian, or other party responsible for the child; or

            (9)(10)    The court may only commit a child to the Department of Corrections if the judge finds that:

            (a)    No viable alternative exists;

            (b)    The Department of Corrections is the least restrictive alternative; and

            (c)    The child is currently adjudicated delinquent for an offense eligible for transfer proceedings pursuant to § 26-11-3.1; the child is currently adjudicated delinquent for a crime of violence pursuant to subdivision 22-1-2(9), sex offense pursuant to § 22-24B-1, felony sexual registry offense pursuant to chapter 22-24B, or burglary in the second degree pursuant to § 22-32-3; or the court finds from evidence presented at the dispositional hearing or from the pre-dispositional report that the youth presents a significant risk of physical harm to another person.

    Any finding made pursuant to this section shall be made in the written decree.

    Section 2. That § 26-7A-128 be amended to read:

    26-7A-128. If the state's attorney elects to proceed on the complaint pursuant to subdivision 26-7A-10(3), the child shall be asked for an admission or denial of the alleged violation. If the child admits to the violation, the court shall accept the admission and enter a judgment pursuant to § 26-7A-129. If the child denies committing the violation, the case may be tried according to procedure adopted by the presiding judge of each judicial circuit and approved by the Supreme Court, but a jury trial may not be granted.



    If the child fails to appear in court at the time set in the summons or set by subsequent postponement, the court may either issue a new summons to appear and set a new date for hearing to show cause, or the court may consider that failure to appear constitutes an admission to the allegations contained in the complaint and may accordingly enter a judgment for payment.

    If the child fails to comply with the terms of the judgment, the court may either issue a summons to appear and show cause, or issue a forfeiture assess against the child's parents or guardians for the amount of the citation and any restitution owed pursuant to § 26-7A-129.

    Section 3. That § 26-8D-8 be amended to read:

    26-8D-8. The oversight council shall consist of the following nineteen twenty members:

            (1)    The Governor shall appoint the following six seven members:

            (a)    A representative from the Department of Corrections;

            (b)    A representative from the Department of Social Services;

            (c)    A representative who is a state's attorney;

            (d)    A representative from a youth care provider; and

            (e)    A representative from the Department of Tribal Relations;

            (f)    Two at large members;

            (2)    The Chief Justice shall appoint the following six members:

            (a)    A representative who is a criminal defense attorney;

            (b)    A representative who is a judge; and

            (c)    Four at large members;

            (3)    The majority leader of the Senate shall appoint the following three members:

            (a)    Two legislative members of the Senate, one from each political party; and

            (b)    One at large member;

            (4)    The majority leader of the House of Representatives shall appoint the following three members:

            (a)    Two legislative members of the House of Representatives, one from each political party; and

            (b)    One member who is a county commissioner; and

            (5)    The attorney general shall appoint one member.

The oversight council shall select a chair and a vice chair.

    Section 4. That § 26-11A-15 be amended to read:

    26-11A-15. If the independent hearing officer finds probable cause that the terms and conditions

of aftercare have been violated by committing an act subject to transfer proceedings pursuant to § 26-11-3.1, a crime of violence pursuant to subdivision 22-1-2(9), sex offense pursuant to § 22-24B-1, felony sexual registry offense pursuant to chapter 22-24B, or burglary in the second degree pursuant to § 22-32-3; or that the juvenile presents a significant risk of physical harm to another person and has committed a new law violation, an aftercare revocation hearing shall be held before a member of the Board of Pardons and Paroles created in § 24-13-1 within thirty days of the temporary detention or shelter hearing. For the purposes of this section, a new law violation is defined as delinquent behavior pursuant to § 26-8B-2 26-8C-2, a Class 1 misdemeanor violation of title 32, or a violation of § 32-23-21. The juvenile, with the consent of a parent, guardian, or custodian, has the right to waive this hearing at any time after the juvenile is detained and after advisement that waiver of the right to appear before the Board of Pardons and Paroles may result in the juvenile being returned to placement.

    If the hearing officer does not find probable cause that the terms and conditions of aftercare have been violated by committing an act subject to transfer proceedings pursuant to § 26-11-3.1, a crime of violence pursuant to subdivision 22-1-2(9), sex offense pursuant to § 22-24B-1, felony sexual registry offense pursuant to chapter 22-24B, or burglary in the second degree pursuant to § 22-32-3; or that the juvenile presents a significant and likely risk of physical harm to another person and has committed a new law violation, the juvenile shall be returned to aftercare or released.

    The member of the board shall set the aftercare revocation hearing and shall give five days notice to the juvenile, to the juvenile's parents, guardian, or custodian, and to any other parties to the hearing.

    The juvenile and the juvenile's parents, guardian, or custodian, shall be given a written statement of the allegations against the juvenile.

    The juvenile shall have the opportunity to appear in person, present witnesses, or documentary evidence in the juvenile's behalf, and cross-examine witnesses unless the member of the board makes a written determination that doing so is not in the best interests of the juvenile.

    The juvenile may be represented by legal counsel at the hearing.

    Section 5. That § 26-7A-129 be amended to read:

    26-7A-129. If a child is found to be in violation of the complaint, the court shall enter a judgment against the child for one or more of the following:

            (1)    A fine and court costs not to exceed one hundred dollars;

            (2)    Restitution as defined in subdivision 23A-28-2(4) and as determined appropriate by the court; or

            (3)    Suspension or revocation of the child's driving privilege if the judgment is entered on a violation pursuant to subdivision 26-7A-126(3).

    The court may set a hearing to review compliance with the judgment. If a child is unable to pay a fine, court costs, or restitution as ordered by the court, any party may request that the court order community service in lieu of the monetary judgment. At no time shall a court order a child to probation or detention upon entry of a judgment on a cited violation. A judgment on a cited violation shall be a confidential matter pursuant to subsection 15-15A-7(p).

    Section 6. That § 26-7A-11 be amended to read:

    26-7A-11. A report of a preliminary investigation involving any apparent child in need of supervision or any apparent delinquent child may be referred for informal adjustment or informal

action pursuant to subdivision 26-7A-10(4) only if:

            (1)    The child and the child's parents, guardian, or other custodian were informed of their constitutional and legal rights, including being represented by an attorney at every stage of the proceedings if a petition is filed;

            (2)    The facts are admitted and establish prima facie jurisdiction; and

            (3)    Written consent is obtained from the child's parents, guardian, or custodian and from the child if the child is of sufficient age and understanding. Efforts to effect informal adjustment or informal action may extend no longer than four months from the date of the consent.

    The state's attorney may include in the referral to a court-approved juvenile diversion program a requirement that restitution as defined in subdivision 23A-28-2(4) be imposed as a condition of the diversion program.

    Section 7. That § 26-8B-6 be amended to read:

    26-8B-6. If a child has been adjudicated as a child in need of supervision, the court shall enter a decree of disposition according to the least restrictive alternative available in keeping with the best interests of the child. The decree shall contain one or more of the following:

            (1)    The court may place the child on probation pursuant to § 26-8B-8 or under protective supervision in the custody of one or both parents, guardian, custodian, relative, or another suitable person under conditions imposed by the court;

            (2)    The court may require as a condition of probation that the child participate in a supervised community service program, provided the child is not placed in a detention facility and is not deprived of the schooling that is appropriate to the child's age, needs, and specific rehabilitative goals. The supervised community service program shall be of a constructive nature designed to promote rehabilitation, shall be appropriate to the age level and physical ability of the child, and shall be combined with counseling by a court services officer or other guidance personnel. The supervised community service program assignment shall be made for a period of time consistent with the child's best interests, but may not exceed ninety days;

            (3)    If the court finds that the child has violated a valid court order, the court may place the child in a detention facility for not more than ninety days, which may be in addition to any period of temporary custody, for purposes of disposition if:

            (a)    The child is not deprived of the schooling that is appropriate for the child's age, needs, and specific rehabilitative goals;

            (b)    The child had a due process hearing before the order was issued; and

            (c)    A plan of disposition from a court services officer is provided to the court;

            (4)    The court may require the child to pay for any damage done to property or for medical expenses restitution, as defined in subdivision 23A-28-2(4) and under conditions set by the court if payment can be enforced without serious hardship or injustice to the child;

            (5)    The court may place a child in an alternative educational program;

            (6)    The court may order the child to be examined and treated at the Human Services Center;

            (7)    The court may impose a fine not to exceed five hundred dollars;

            (8)    The court may order the suspension or revocation of the child's right to apply for a driving privilege, suspend or revoke an existing driving privilege, or restrict the privilege in such manner as the court sees fit or as required by § 32-12-52.4, including requiring that financial responsibility be proved and maintained;

            (9)    The court may assess or charge the same costs and fees as permitted by §§ 16-2-41, 23-3-52, 23A-27-26, 23A-28B-42, and 23A-27-27 against the child, parent, guardian, custodian, or other party responsible for the child; or

            (10)    The court may only commit a child to the Department of Corrections if the judge finds that:

            (a)    No viable alternatives exist;

            (b)    The Department of Corrections is the least restrictive alternative; and

            (c)    The court finds from evidence presented at the dispositional hearing or from the pre-dispositional report that the youth presents a significant risk of physical harm to another person.

    Any finding made pursuant to this section shall be made in the written decree.

    After disposition, but prior to placement in a juvenile correctional facility, a state interagency team comprised of representatives from the Department of Human Services, the Department of Social Services, the Department of Education, the Department of Corrections, and the Unified Judicial System shall make a written finding that placement at a Department of Corrections facility is the least restrictive placement commensurate with the best interests of the child. Subsequent placement in any other Department of Corrections facility may be authorized without an interagency review.

    No adjudicated child in need of supervision may be incarcerated in a detention facility except as provided in subdivision (3) or (10) of this section.

    Section 8. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 25, 2016
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MENTALLY ILL PERSONS

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CHAPTER 147

(SB 142)

Disclosure authorized of mental health information
to law enforcement.


        ENTITLED, An Act to authorize certain disclosures of mental health information to law enforcement.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 27A-12-27 be amended to read:

    27A-12-27. If requested, information shall be disclosed:

            (1)    Pursuant to orders or subpoenas an order or subpoena of a board of mental illness or a court of record or subpoenas a subpoena of the Legislature;

            (2)    To a prosecuting or defense attorney or to a qualified mental health professional as necessary for him the attorney or professional to participate in a proceeding governed by this title;

            (3)    To an attorney representing a person who is presently subject to the authority of this title or who has been discharged when that person has given his consent;

            (4)    If necessary in order to comply with another provision of law;

            (5)    To the department if the information is necessary to enable the department to discharge a responsibility placed upon it by law; or

            (6)    To a states attorney or the attorney general for purpose of investigation of an alleged criminal act either committed by or upon a human services center patient while a patient of the center; or

            (7)    To a law enforcement official or agency, or correctional institution, if the official, agency, or institution informs the inpatient facility that an arrest warrant has been issued for or criminal charges are pending against a person, for purposes of obtaining custody of the person by a law enforcement official or agency before discharge.

    Section 2. That chapter 27A-12 be amended by adding a NEW SECTION to read:

    If a request for notice is made pursuant to subdivision (7) of section 1 of this Act, the request shall:

            (1)    Be made in writing and served upon an inpatient facility, either by personal service or electronic facsimile with oral notice of the facsimile given by telephone, before the discharge;

            (2)    Contain clear contact information and a reasonable contact method for notifying the requesting official, agency, or institution; and

            (3)    Contain clear information identifying the person.

    Upon receipt of a request fulfilling the requirements of this section, the inpatient facility shall provide the notice of pending discharge to the requester as soon as reasonably practical before discharge. The notice shall contain the time, date, and location of the pending discharge. The inpatient facility shall record in the person's medical record the time the notice of pending discharge is given, to whom, how the notice was given, who gave the notice, the set time for discharge, and the time the law enforcement official or agency obtained custody of the person after the notice was given, if applicable.

    Section 3. That chapter 27A-12 be amended by adding a NEW SECTION to read:

    If a person is subject to a petition for involuntary commitment under this title, the inpatient facility may detain that person in the facility for a period of time not to exceed four hours after the time set for discharge, if necessary for a law enforcement official or agency to obtain custody of the person. This period of time includes four hours after the board of mental illness releases a detention of the person pursuant to this title. If the person is not taken into custody after the notice to the requester and within the specified period of time, the person shall be released from any detention or discharged, as appropriate. The inpatient facility shall record the time of the release or discharge in the person's medical record. If the person was a voluntary patient in the inpatient facility, the person shall maintain the right to discharge as provided in § 27A-8-10.

    Section 4. That chapter 27A-12 be amended by adding a NEW SECTION to read:

    The detention of a person in good faith and not in excess of the period of time specified in this Act may not render any law enforcement official, agency, institution, board, court, physician, inpatient facility, or staff detaining the person liable in any criminal or civil action for false arrest or false imprisonment.

     Signed March 14, 2016
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PUBLIC WELFARE AND ASSISTANCE

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CHAPTER 148

(HB 1110)

Medicaid for certain unborn children.


        ENTITLED, An Act to provide medical care for certain unborn children.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    There is hereby created the prenatal care program, a separate health assistance program as allowed under Title XXI of the federal Social Security Act, as amended to January 1, 2004, and 42

C.F.R. 457.10, solely to provide for the medical care of unborn children whose mothers are ineligible for coverage under Title XIX of the federal Social Security Act based on their citizenship status.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Within thirty days after the effective date of this Act, the Department of Social Services shall submit a state plan amendment or waiver for approval by the federal Centers for Medicare and Medicaid Services to provide prenatal coverage under the medical assistance program in accordance with this Act.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    The department shall implement the prenatal care program and shall receive and distribute the state and federal funds appropriated or provided for benefits pursuant to this Act.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    The secretary shall promulgate rules pursuant to chapter 1-26 in accordance with the provisions of Title XXI of the federal Social Security Act, as amended to January 1, 2004, and 42 C.F.R 457.10. The rules shall specify the individuals and services for which state funds or federal financial participation are available and may include:

            (1)    The amount, scope, and duration of prenatal medical services;

            (2)    The basis for and extent of provider payments on behalf of an eligible person;

            (3)    The establishment and collection of copayments, premiums, fees, or charges for sharing the cost of risk protection or services to persons. All collections shall be remitted to the general fund;

            (4)    Methods of administration found necessary for the operation of the prenatal care program;

            (5)    Safeguards against the disclosure or improper use of information, required by statutory law to be held confidential, concerning applicants for or recipients of medical assistance; and

            (6)    Any other requirements as may be necessary to obtain federal financial participation in the medical assistance program.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The department shall determine eligibility for this program using the same income limits and methodology used to determine eligibility for the pregnancy program under Title XIX.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    The department shall determine the scope of services eligible to provide health coverage for the unborn child for this program in accordance with the federal regulations.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    No medical services for a medical issue unrelated to the pregnancy or separate to the mother is covered under this Act.

    Section 8. That the code be amended by adding a NEW SECTION to read:


    For purposes of this Act, the term, prenatal medical services, does not include an abortion unless the abortion is necessitated by a medical emergency as defined in subdivision 34-23A-1(5).

     Signed March 16, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\148.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\149.wpd
CHAPTER 149

(HB 1224)

Participation by South Dakota residents
in an ABLE savings program.


        ENTITLED, An Act to facilitate participation by South Dakota residents in an ABLE savings program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "ABLE savings program," a qualified savings program established under section 529A of the Internal Revenue Code, 26 U.S.C. 529A;

            (2)    "Council," the South Dakota Investment Council.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    When determining the eligibility or amount of benefits to be received by a designated beneficiary of an ABLE savings program, a state or local agency may not consider a contribution to an account in a qualified ABLE savings program, earnings on the contribution, or a distribution from the account for qualified disability expenses as defined in section 529A(e)(5) of the Internal Revenue Code, 26 U.S.C. 529A(e)(5), as of January 1, 2016.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    The council may provide information about ABLE savings programs to residents of this state. The state investment officer and the employees of the Division of Investment may assist the council in carrying out its duties under this Act.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Nothing in this Act creates any obligation of the council, the state, state investment officer, the Division of Investment, or any agency or instrumentality of the state to guarantee for the benefit of any account owner or designated beneficiary with respect to the return of principal, rate of interest or other return on any account, or payment of interest or other return on any account.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The council, each council member, the state investment officer, and each employee of the Division of Investment personally is immune from any and all liability for actions taken in good faith
in the discharge of the council's responsibilities under this Act.

     Signed March 11, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\149.wpd

UNIFORM PROBATE CODE

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\150.wpd
CHAPTER 150

(SB 152)

Protected person visitation regulated.


        ENTITLED, An Act to enact the Peter Falk Act to ensure visitation of certain protected persons.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    Except as described in section 2 of this Act, a guardian or conservator may not restrict a protected person's right of communication, visitation, or interaction with other persons, including the right to receive visitors, telephone calls, or personal mail, unless the restriction is authorized by a court order. For purposes of this Act, other persons only includes the parents, children, and siblings of the protected person.

    Section 2. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    If a protected person is unable to express consent to communication, visitation, or interaction with a person due to a physical or mental condition, then the guardian or conservator may presume the protected person's consent to or refusal of the communication, visitation, or interaction based on proof concerning the nature of the protected person's relationship with the other person.

    Section 3. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    With good cause, a guardian or conservator may move the court to restrict the other person's ability to communicate, visit, or interact with a protected person.

    Section 4. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    A court may issue an order restricting the communications, visitations, or interactions that the other person may have with a protected person upon a showing of good cause by a guardian or conservator. In determining whether to issue an order, a court shall consider the following factors:

            (1)    Whether any protective order has been issued to protect the protected person from the other person;

            (2)    Whether the other person has been charged with abuse, neglect, or financial exploitation of the protected person;

            (3)    Whether the protected person has expressed a desire to communicate, visit, or interact with the other person or has expressed a desire not to communicate, visit, or interact with

the other person;

            (4)    If the protected person is unable to communicate, whether a properly executed living will, durable power of attorney, or advance directive contains a preference by the protected person with regard to the other person's communication, visitation, or interaction with the protected person; and

            (5)    Any other factor deemed relevant by the court.

    Section 5. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    Before issuing an order pursuant to section 4 of this Act, the court shall consider imposing the following restrictions in the order listed:

            (1)    Placing reasonable time, manner, or place restrictions on communication, visitation, or interaction between the protected person and the other person based on the history between the protected person and the other person or the protected person's wishes, or both;

            (2)    Requiring that communication, visitation, or interaction between the protected person and the other person be supervised; or

            (3)    Denying communication, visitation, or interaction between the protected person and the other person.

    If the court finds that the other person poses a threat to the protected person, the court may order supervised communication, visitation, or interaction pursuant to subdivision (2) before denying any communication, visitation, or interaction.

    Section 6. That chapter 29A-5 be amended by adding a NEW SECTION to read:

    If any person, including the protected person, reasonably believes that a guardian or conservator has violated a court order or abused the guardian's or conservator's discretion in applying section 2 of this Act, the person may move the court to:

            (1)    Require the guardian or conservator to grant a person access to the protected person;

            (2)    Restrict, or further restrict, a person's access to the protected person;

            (3)    Modify the guardian or conservator's duties; or

            (4)    Remove the guardian or conservator pursuant to chapter 29A-5.

    A guardian or conservator who knowingly isolates a protected person and has violated this Act or an order issued pursuant to this Act, is subject to removal pursuant to chapter 29A-5.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\150.wpd



HIGHWAYS AND BRIDGES

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\151.wpd
CHAPTER 151

(SB 7)

State trunk highway system revised.


        ENTITLED, An Act to revise the composition of the state trunk highway system.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 31-4-140 be amended to read:

    31-4-140. The state trunk highway system includes the following in Lincoln and Minnehaha counties:

            (1)    From a point on State Highway 44 at Lennox near the southwest corner of section thirty-three, township ninety-nine north, range fifty-one west, thence north via Lennox to a point fifty feet south of the centerline of 278th Street at its intersection with State Highway 17;

            (2)    From the Minnehaha County-Lincoln County line north to State Highway 42 west of Sioux Falls near the northwest corner of section nineteen, township one hundred one north, range fifty west.

     Signed February 23, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\151.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\152.wpd
CHAPTER 152

(HB 1127)

Road district authority revised.


        ENTITLED, An Act to revise certain provisions concerning road districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 31-12A-36 be amended to read:

    31-12A-36. A contiguous area may be annexed or an area withdrawn from to a road district by:

            (1)    Circulation circulation of an initiating petition for annexation signed by twenty-five percent of the eligible voters in the area to be annexed and twenty-five percent of the eligible voters in the existing district, similar to an initiating petition specified in this chapter; or

            (2)    Circulation of an initiating petition for withdrawal signed by twenty-five percent of the

eligible voters in the area to be withdrawn and passage of a resolution therefor by the directors of the road district.

    Upon receipt of an initiating petition and passage of a resolution by the directors finding that the petition is valid, the area shall be annexed if a majority of the eligible voters in the area to be annexed and a majority of the eligible voters in the existing area vote in favor of the annexation in the same manner as prescribed for creation of a new road district or the area shall be withdrawn if a majority of the eligible voters in the withdrawing area vote in favor of withdrawal in the same manner as prescribed for creation of a new road district.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\152.wpd

MOTOR VEHICLES

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\153.wpd
CHAPTER 153

(HB 1179)

Large boats exempt from the excise tax.


        ENTITLED, An Act to revise certain provisions regarding the exemption of certain boats from the excise tax on large boats.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-3A-52 be amended to read:

    32-3A-52. Exempt from the provisions of § 32-3A-50 are:

            (1)    Any large boat which is the property of the governmental units which are exempted from motor vehicle registration fees by §§ 32-5-42 and 32-5-42.1;

            (2)    Any large boat acquired by inheritance or bequest;

            (3)    Any large boat previously titled or licensed jointly in the names of two or more persons and subsequently transferred without consideration to one or more of such persons;

            (4)    Any large boat transferred without consideration between spouses, between a parent and child, and between siblings;

            (5)    Any large boat transferred pursuant to any mergers or consolidations of corporations or limited liability companies, or plans of reorganization by which substantially all of the assets of a corporation or limited liability company are transferred if the large boat was previously titled, licensed, and registered in this state;

            (6)    Any large boat transferred by a subsidiary corporation or limited liability company to its parent corporation or limited liability company for no or nominal consideration or in sole consideration of the cancellation or surrender of the subsidiary's stock if the large boat was previously titled, licensed, and registered in this state;

            (7)    Any large boat transferred between an individual and a corporation if the individual and the owner of the majority of the capital stock of the corporation are one and the same, or any large boat transferred between an individual and a limited liability company if the individual and the majority member of the limited liability company are one and the same, and if the large boat was previously titled and registered in this state;

            (8)    Any large boat transferred between a corporation or limited liability company and its stockholders, members, or creditors if to effectuate a dissolution of the corporation or limited liability company it is necessary to transfer the title from the corporate entity or limited liability company to the stockholders, members, or creditors and if the large boat was previously titled and registered in this state;

            (9)    Any large boat transferred between an individual and limited or general partnership if the individual and the owner of the majority interest in the partnership are one and the same person and if the large boat was previously titled and registered in this state;

            (10)    Any large boat transferred to effect a sale of all or substantially all of the assets of the business entity if the large boat was previously titled and registered in this state;

            (11)    Any large boat acquired by a secured party or lien holder in satisfaction of a debt;

            (12)    Any large boat sold or transferred which is eleven or more years old and which is sold or transferred for two thousand two hundred two thousand five hundred dollars or less before trade-in;

            (13)    Any damaged large boat transferred to an insurance company in the settlement of an insurance claim;

            (14)    Any large boat owned by a former resident of this state who returns to the state and who had previously paid excise tax to this state on the large boat as evidenced within the department's records or by submission of other acceptable proof of payment of such tax;

            (15)    Any large boat transferred between corporations, both subsidiary and nonsubsidiary, if the individuals who hold a majority of stock in the first corporation also hold a majority of stock in the second corporation; but these individuals need not hold the same ratio of stock in both corporations and if the large boat was previously titled and registered in this state;

            (16)    Any large boat transferred between limited liability companies, both subsidiary and nonsubsidiary, if the individuals who hold a majority interest in the first limited liability company also hold a majority interest in the second limited liability company and if the large boat was previously titled, licensed, and registered in this state; and

            (17)    Any large boat transferred by a trustor to a trustee or from a trustee to a beneficiary of a trust.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\153.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\154.wpd
CHAPTER 154

(HB 1095)

Time period to transfer a motor vehicle title, increased.


        ENTITLED, An Act to revise certain allowable time periods regarding the transfer of vehicle ownership.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5-2.5 be amended to read:

    32-5-2.5. A person who acquires a motor vehicle required to be annually registered shall, at the time of application and no later than thirty forty-five days after the date of purchase apply for a certificate of title or transfer of title, register the vehicle until the appropriate month assigned to the person for renewal by § 32-5-2.2.

    Section 2. That § 32-5-2.9 be amended to read:

    32-5-2.9. If a vehicle is sold or transferred, the seller shall provide the purchaser with a seller's permit that shall allow allows for the movement of the vehicle until registered but no later than thirty forty-five days from the date of purchase. Failure to comply with this section is a Class 2 misdemeanor.

    Section 3. That § 32-5-8.1 be amended to read:

    32-5-8.1. Each trailer or semitrailer pulled by a noncommercial motor vehicle on which the license fees were paid pursuant to § 32-5-6.3 shall have an identification plate displayed in a conspicuous manner. The fee for the identification plate is ten dollars. The identification plate is valid for the useful life of the trailer or semitrailer. However, if the title to the trailer or semitrailer is transferred, the new owner shall within thirty forty-five days of the date of transfer make application to the department for a new identification plate. All revenue raised by the fees shall be placed in the license plate special revenue fund. However, no identification plate may be displayed on a recreational vehicle as defined in § 32-3-1. Such a A recreational vehicle shall be licensed pursuant to § 32-5-8.

    Section 4. That § 32-3-3.1 be amended to read:

    32-3-3.1. Any new mobile home, new manufactured home, or mobile home or manufactured home which has not been registered in this state shall, upon its sale, be initially registered and titled pursuant to this chapter, and the initial registration fee provided in § 32-5-16.1 shall be collected. If the mobile home or manufactured home is sold by a dealer, the licensed dealer shall deliver to the county treasurer the manufacturer's statement of origin, the manufacturer's certificate of origin, or the title for the mobile home or manufactured home, together with the required fees and completed forms necessary to accomplish the initial registration within thirty forty-five days of the sale. For mobile homes or manufactured homes not sold by a licensed dealer, the purchaser shall register and title the mobile home or manufactured home within thirty forty-five days. Any dealer or purchaser who does not comply with this section is subject to a late penalty fee of one dollar for each week or fraction thereof of the week beyond the thirty-day forty-five day limitation for twenty-five weeks and a late fee of fifty dollars for twenty-six weeks or more. Any person applying for title a year or more beyond the thirty-day forty-five day limitation is guilty of a Class 2 misdemeanor.

    Section 5. That § 32-3A-29 be amended to read:



    32-3A-29. If ownership of a large boat is transferred by operation of law, by inheritance, order in bankruptcy, insolvency, replevin, or execution sale, the transferee, within thirty forty-five days after acquiring the right to possession of the large boat, shall mail or deliver to the county treasurer satisfactory proof of ownership as the department requires, together with an application for a new certificate of title, and the required fee. If a lienholder repossesses a large boat and holds it for resale, the lienholder shall secure a new certificate of title and shall pay the required fee.

    Section 6. That § 32-3-51.20 be amended to read:

    32-3-51.20. If an insurer, in settlement of a total loss insurance claim, or self insurer acquires the ownership of any salvage vehicle as defined in § 32-3-51.19 that does not have a salvage vehicle title, the insurer shall within thirty forty-five days following acquisition of the certificate of title of that vehicle, surrender the certificate of title for such the vehicle to the department. The department shall promptly issue a title indicating it is a salvage vehicle to the insurer or self insurer. Once If a vehicle has been branded a salvage vehicle, nothing in this section prohibits a person from obtaining a rebuilt title pursuant to § 32-3-53.

    Section 7. That § 32-3-51.22 be amended to read:

    32-3-51.22. If a stolen vehicle is recovered, the insurer or self insurer shall, within thirty forty-five days of recovery, inspect the vehicle and apply for a title as follows:

            (1)    .

    If the vehicle has no damage or the damage is less than that defined in § 32-3-51.19, surrender the existing salvage title to the department. The department shall promptly issue a title marked as a recovered theft with no salvage notation.

    However, if the condition of the vehicle is such that it would have been determined a salvage vehicle as defined in § 32-3-51.19 due to the damage to the vehicle, the salvage title is retained and the insurer or self insurer is not required to apply for a title pursuant to this section.

    Section 8. That § 32-3A-40 be amended to read:

    32-3A-40. If ownership of a large boat is being transferred, the application for certificate of title shall be filed within thirty forty-five days after the date of assignment or acquisition of the large boat. However, a boat dealer need not apply for a certificate of title on any large boat held in stock or acquired for stock purposes unless otherwise required under this chapter. Upon transfer of the large boat, the boat dealer shall give the transferee a reassignment of the certificate of title or the manufacturer's statement of origin.

    Section 9. That § 32-7A-4.2 be amended to read:

    32-7A-4.2. The department may deny any application or apply the provisions of §§ 32-7A-4.3 to 32-7A-4.8, inclusive, on any license issued under the provisions of this chapter, for any of the following:

            (1)    Commission of fraud or willful misrepresentation in the application for or in obtaining a license;

            (2)    A previous manufacturer or dealer license revocation in this or any other state;

            (3)    A violation of any law of this state which relates to dealing in manufactured homes or mobile homes;

            (4)    Failure to comply with any administrative rule promulgated by the department;

            (5)    Perpetration of a fraud upon any person as a result of dealing in manufactured homes or mobile homes;

            (6)    Failure to allow department inspections, including initial and annual inspections, complaint investigations and necessary follow-up inspections;

            (7)    Misrepresentation through false, deceptive, or misleading statements with regard to the sale or financing of manufactured homes or mobile homes which a dealer has, or causes to have, advertised, printed, displayed, published, distributed, broadcast, televised, or made in any manner with regard to the sale or financing of manufactured homes or mobile homes;

            (8)    Refusal to comply with a licensee's responsibility under the terms of the new manufactured home or mobile home warranty issued by its respective manufacturer, unless such refusal is at the direction of the manufacturer;

            (9)    Failure to comply with the terms of any bona fide written, executed agreement pursuant to the sale of a manufactured home or mobile home;

            (10)    Violation by the dealer of any applicable manufactured home building or safety code;

            (11)    Failure to continuously occupy a principal place of business licensed under § 32-7A-2;

            (12)    Failure to deliver the manufacturer's statement of origin to the county treasurer or the certificate of title to a person entitled to it within thirty forty-five days after date of delivery;

            (13)    Conviction within the previous five years, of a crime that related directly to the business of the dealer or manufacturer involving fraud, misrepresentation or misuse of funds;

            (14)    Inability to obtain or renew a surety bond; or

            (15)    Misuse of the dealers' metal plates and lending for use on mobile homes or manufactured homes not owned by the manufacturer or dealer.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\154.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\155.wpd
CHAPTER 155

(HB 1137)

Distribution of registration fees
from noncommercial gross weight vehicles, revised.


        ENTITLED, An Act to revise the distribution of registration fees from noncommercial gross weight vehicles.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5-6.3 be amended to read:

    32-5-6.3. License fees on a noncommercial motor vehicle which is not an automobile, pickup truck, or van licensed pursuant to § 32-5-6 shall be determined by the gross weight of the motor

vehicle as defined by subdivision 32-9-1(6), and based on the following:

            (1)    Eight thousand pounds or less, inclusive, one hundred twenty dollars;

            (2)    For each additional 2,000 pounds or major fraction thereof from 8,001 to 20,000 pounds, inclusive, twelve dollars; and

            (3)    For a vehicle in excess of 20,000 pounds, from July 1, 2015, to June 30, 2016, inclusive, the total license fee shall be seventy percent of the total license fee established for commercial vehicles of equivalent weight pursuant to § 32-9-15. On and after July 1, 2016, the total license fee shall be eighty percent of the total license fee established for commercial vehicles of equivalent weight pursuant to § 32-9-15.

    It is a Class 2 misdemeanor for a person to operate a motor vehicle licensed pursuant to this section at a gross weight in excess of the gross weight for which it has been licensed. If the owner chooses to lower the registered weight, the plate shall be returned along with any validation decal and a new plate issued with the correct registered weight.

    Notwithstanding the provisions of § 32-11-4.1, all funds collected pursuant to this section shall be distributed as follows:

            (1)    One and three-fourths percent shall be credited to the state motor vehicle fund;

            (2)    Two and one-half percent shall be credited to the state license plate special revenue fund;

            (3)    One-fourth of one percent shall be credited to the county treasurer fund to cover expenses for supplies such as toner, paper, etc.;

            (4)    Sixty-seven percent shall be credited to the county road and bridge fund;

            (5)    Twenty-three percent shall be placed in the special highway fund and shall be distributed to the townships in accordance with §§ 32-11-5 to 32-11-7, inclusive; and

            (6)    Five and one-half percent shall be distributed to municipalities within the county in accordance with subdivision 32-11-4.1(3).

     Signed March 16, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\155.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\156.wpd
CHAPTER 156

(SB 66)

Special license plates for parents of children with disabilities.


        ENTITLED, An Act to permit the issuance of special license plates to parents of certain individuals.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5-76 be amended to read:

    32-5-76. An owner of a motor vehicle, who is a resident of this state, who has complied with all the laws of this state in regards to the registration of a motor vehicle, and who operates or directs the operation of the vehicle, may submit to the county treasurer an application containing a physician's

certificate on a form approved by the secretary, stating that the applicant is a person with a substantial physical disability that makes it impossible or causes substantial hardship to walk. An owner of a motor vehicle, who is a resident of this state, who has complied with all the laws of this state in regards to the registration of a motor vehicle, and who is the parent or legal guardian of a dependant with a substantial physical disability and operates the motor vehicle for the purpose of transporting the dependent, may submit to the county treasurer an application containing a physician's certificate on a form approved by the secretary, stating that the dependent has a substantial physical disability that makes it impossible or causes substantial hardship to walk. The secretary shall promulgate a rule, pursuant to chapter 1-26, defining a person with a substantial physical disability. The county treasurer shall procure, issue, and deliver to the applicant special plates with letters, numbers, or symbols, or any combination thereof, as the secretary may prescribe. The special plates shall be designed to readily apprise law enforcement officers of the fact that the motor vehicle is owned, operated, or used in transporting a person with a substantial physical disability. No charge may be made for the issuance of the special plates. The special plates shall be in lieu of the regular number plates issued for the motor vehicle. The special plates shall be displayed as set forth in § 32-5-98. If the applicant is no longer a person or the parent or legal guardian of a dependent with a substantial physical disability or is deceased, the special plates shall be surrendered within thirty days to the county treasurer of the applicant's residence, and the treasurer shall notify the secretary who shall make the necessary changes in the registration file. The owner shall obtain regular number plates. Failure to surrender the special license plates as required by this section is a Class 2 misdemeanor. It is a Class 1 misdemeanor to submit a false or fraudulent application.

     Signed March 7, 2016

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\156.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\157.wpd
CHAPTER 157

(SB 85)

Motorcycle and other license plates.


        ENTITLED, An Act to revise certain provisions regarding motorcycle license plates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5-85 be amended to read:

    32-5-85. Two number plates shall be issued, except that as to a motorcycle, recreational vehicles, semitrailers, and trailers vehicle, semitrailer, and trailer, as such terms are defined in subdivisions 32-3-1(10), (18), (21), and (23), one number plate shall be issued.

    Section 2. That § 32-5-98 be amended to read:

    32-5-98. Except as otherwise specifically provided, no person may operate or drive a motor vehicle on the public highways of this state unless such the vehicle shall have has a distinctive number assigned to it by the department, and two number plates, bearing such the number conspicuously displayed, horizontally and in an upright position, one on the front and one on the rear of such the vehicle, each securely fastened. The plates shall at all times, as far as is reasonably possible, be kept clear and free of mud, ice, or snow so as to be clearly visible. All number plates, markers, or stamps evidencing registration or licensing of any vehicle in this or any foreign state, territory, district, or possession and any plate, marker, or stamp used in substitution for or in lieu of the number plates required by this section by virtue of any law or executive order for any prior year or years shall be removed from such vehicles. A motorcycle is only required to display one number

plate. A violation of this section is a Class 2 misdemeanor.

     Signed February 23, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\157.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\158.wpd
CHAPTER 158

(HB 1164)

Special interest motor vehicle license plate.


        ENTITLED, An Act to provide for a special interest motor vehicle license plate for certain vehicles under certain conditions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 32-5 be amended by adding a NEW SECTION to read:

    Any person who is a resident of this state and is the owner of a special interest motor vehicle may apply to the county treasurer of the applicant's county of residence for a special interest motor vehicle license plate. The application shall be on a form prescribed by the secretary and is in addition to any other forms required by this chapter. The applicant shall meet all of the requirements in section 4 of this Act and pay any applicable fees in order to receive a special interest motor vehicle license plate.

    For purposes of this Act, a special interest motor vehicle is a vehicle that is collected, preserved, restored, or maintained by the owner as a leisure pursuit and is not used for general or commercial transportation. The special interest motor vehicle license plate may be placed on any automobile, pickup, truck, or van licensed pursuant to § 32-5-6 that qualifies as a special interest motor vehicle.

    Section 2. That chapter 32-5 be amended by adding a NEW SECTION to read:

    The special interest motor vehicle plate shall be issued in place of the regular plates issued pursuant to § 32-5-85. The special interest motor vehicle plate shall be numbered and designed by the secretary to be visibly distinct from regular noncommercial license plates. The special interest motor vehicle plate shall be reflectorized and validated with a decal each year in the same manner as noncommerical license plates. Notwithstanding the requirements of § 32-5-98, a vehicle for which a special interest motor vehicle license plate is issued is not required to display a number plate on the front of the vehicle. The special interest motor vehicle license plate shall be securely fastened to the rear of the special interest motor vehicle in a horizontal and upright position.

    Section 3. That chapter 32-5 be amended by adding a NEW SECTION to read:

    In addition to the noncommercial annual registration fees, each applicant for a special interest motor vehicle license plate shall pay an annual twenty-five dollar fee. All fees collected pursuant to this section shall be credited to the license plate special revenue fund.

    Section 4. That chapter 32-5 be amended by adding a NEW SECTION to read:

    An application for a special interest motor vehicle license plate, as provided for in section 1 of this Act, shall include a signed affidavit wherein the applicant attests to the following:

            (1)    The motor vehicle for which the special interest motor vehicle license plate is sought is driven less than six thousand miles per year;

            (2)    The motor vehicle for which the special interest motor vehicle license plate is sought is not used for general or commercial transportation, but rather for occasional transportation, public displays, parades, and related pleasure or hobby activities; and

            (3)    The current reading on the odometer of the special interest motor vehicle.

    The secretary may, at any time, require an applicant to provide additional information to determine if the applicant meets the special interest motor vehicle license plate requirements.

    An applicant shall annually, at the time of registration renewal, submit the current odometer reading of the special interest motor vehicle. If an applicant fails to provide this information the registration may not be renewed.

    Section 5. That chapter 32-5 be amended by adding a NEW SECTION to read:

    If an applicant misuses the special interest motor vehicle license plate by not adhering to the special interest motor vehicle license plate requirements, that applicant shall surrender to the department all special interest motor vehicle license plates in his or her possession and is not eligible for a special interest motor vehicle plate for a period of three years.

    Section 6. That § 32-5-67 be amended to read:

    32-5-67. All fees received pursuant to §§ 32-5-42, 32-5-42.2, 32-5-65, 32-5-65.1, 32-5-159, and 32-5-160, and this Act shall be credited to a fund to be known as the license plate special revenue fund. The special revenue fund shall be expended for the purchase of special plates required pursuant to this chapter and the expenses of the office incident to the issuance thereof. Disbursements from this fund shall be made by warrants drawn by the state auditor on vouchers duly approved by the secretary.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\158.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\159.wpd
CHAPTER 159

(HB 1083)

The sale of certain off-road vehicles regulated.


        ENTITLED, An Act to change the taxation method used in the sale of certain off-road vehicles and require that the sale of these vehicles be by licensed vehicle dealers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5B-1 be amended to read:

    32-5B-1. In addition to all other license and registration fees for the use of the highways, a person shall pay an excise tax at the rate of four percent on the purchase price of any motor vehicle, as defined by § 32-3-1 or 32-5B-21, purchased or acquired for use on the streets and highways of this state and required to be registered under the laws of this state. A person shall pay an excise tax at the rate of four percent on the purchase of an off-road vehicle as defined by § 32-3-1 and required to be titled pursuant to § 32-20-12. This tax shall be in lieu of any tax levied by chapters 10-45, 10-46, and 10-46E on the sales of such vehicles. Failure to pay the full amount of excise tax is a Class 1 misdemeanor.


    Section 2. That subdivision (22) of § 32-6B-1 be amended to read:

            (22)    "Vehicle," any new or used automobile, truck, truck tractor, motorcycle, off-road vehicle, motor home, trailer, semitrailer or travel trailer of the type and kind required to be titled and registered under chapters 32-3 and 32-5, or required to be titled under chapter 32-20 except manufactured homes, mobile homes, mopeds or snowmobiles;

    Section 3. That § 32-6B-7 be amended to read:

    32-6B-7. Before any license is issued, the applicant shall deliver to the department a good and sufficient surety bond, executed by the applicant as principal and by a surety company qualified to do business in the state as surety. The bond shall be for an amount based upon the type of license applied for, as follows:

            (1)    Vehicle dealer's license--$25,000;

            (2)    Used vehicle dealer's license--$25,000;

            (3)    Motorcycle and off-road vehicle dealer's license--$5,000;

            (4)    Trailer dealer's license--$10,000 for trailers weighing more than 3,000 three thousand pounds; or

            (5)    Emergency vehicle dealer's license--$10,000.

    The bond shall be to the department and in favor of any customer who suffers any loss that may be occasioned by reason of the failure of title or by reason of any fraudulent misrepresentation or breaches of warranty as to freedom from liens. The bond shall be for the license period. A new bond or a proper continuation certificate shall be delivered to the department at the beginning of each license period. Any surety company that pays a claim against the bond of a licensee shall notify the department, in writing, that it has paid such a claim. Any surety company that cancels the bond of a licensee shall notify the department, in writing, of the cancellation, giving the reason for that cancellation. If a claim is made to the department against the bond, which claim is based upon a final judgment of a court of record of this state, the dealer shall execute an additional bond for the amount necessary to maintain the security at the original level.

    Section 4. That § 32-6B-12 be amended to read:

    32-6B-12. Any dealer's license issued under this chapter shall be of the following classes:

            (1)    "Vehicle dealer's license," a license that permits the licensee to engage in the business of selling or exchanging new, or new and used, vehicles;

            (2)    "Used vehicle dealer's license," a license that permits the licensee to engage in the business of selling or exchanging used vehicles only;

            (3)    "Motorcycle and off-road vehicle dealer's license," a license that permits the licensee to engage in the business of selling or exchanging new or used motorcycles and new or used off-road vehicles only;

            (4)    "Trailer dealer's license," a license that permits the licensee to engage in the business of selling or exchanging trailers, semitrailers, recreational park trailers, or travel trailers only, new or used;

            (5)    "Emergency vehicle dealer's license," a license that permits the licensee to engage in the business of selling or exchanging new or used authorized emergency vehicles; or

            (6)    "Final stage manufacturer dealer's license," a license that permits the licensee to engage in the business of selling or exchanging a previously assembled new motor vehicle chassis cab that has been completed by the final stage manufacturer and to engage in the business of selling or exchanging used motor vehicles.

    A license certificate identifying the class of dealership and containing a distinguishing identification number of licensee shall be issued by the department if the application is in compliance with the provisions of this chapter.

    Section 5. That § 32-6B-13 be amended to read:

    32-6B-13. Upon making initial application for a dealer's license, the applicant shall pay a fee to the department. The initial fee required for each type of dealer's license is as follows:

            (1)    Vehicle dealer's license--$300;

            (2)    Used vehicle dealer's license--$300;

            (3)    Motorcycle and off-road vehicle dealer's license--$250;

            (4)    Trailer dealer's license--$125;

            (5)    Emergency vehicle dealer's license--$300; or

            (6)    Final stage manufacturer dealer's license--$300.

    All money collected pursuant to this section shall be deposited in the state motor vehicle fund.

    Section 6. That § 32-6B-15 be amended to read:

    32-6B-15. A renewal application shall be submitted to the department annually, prior to the expiration of the old license. The applicant shall pay a fee based on the following schedule to the department:

            (1)    Vehicle dealer's license--$175;

            (2)    Used vehicle dealer's license--$175;

            (3)    Motorcycle and off-road vehicle dealer's license--$150;

            (4)    Trailer dealer's license--$100; or

            (5)    Emergency vehicle dealer's license--$175.

    The renewal application shall contain the same information as required for the initial application in § 32-6B-6. Any application for renewal made after the expiration date shall be accompanied by a fee in the amount of the initial license fee as established in § 32-6B-13.

    Section 7. That chapter 32-5B be amended by adding a NEW SECTION to read:

    All excise taxes collected on the purchase of an off-road vehicle as provided by § 32-5B-1 shall be deposited in the state general fund.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\159.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\160.wpd
CHAPTER 160

(HB 1113)

Motor vehicle excise tax exemption.


        ENTITLED, An Act to exempt from the excise tax on motor vehicles the transfer of motor vehicles to a nonprofit organization under certain conditions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5B-2 be amended to read:

    32-5B-2. Motor vehicles exempted from the provisions of this chapter are as follows:

            (1)    Any motor vehicle exempted in § 32-5-1.3, 32-5-42, 32-5-42.1, or 32-5-42.2;

            (2)    Any motor vehicle acquired by inheritance from or bequest of a decedent;

            (3)    Any motor vehicle previously titled or licensed jointly in the names of two or more persons and subsequently transferred without consideration to one or more of such persons;

            (4)    Any motor vehicle transferred without consideration between spouses, between a parent and child, and between siblings;

            (5)    Any motor vehicle transferred pursuant to any mergers or consolidations of corporations or limited liability companies, or plans of reorganization by which substantially all of the assets of a corporation or limited liability company are transferred if the motor vehicle was previously titled, licensed, and registered in this state;

            (6)    Any motor vehicle transferred by a subsidiary corporation or limited liability company to its parent corporation or limited liability company for no or nominal consideration or in sole consideration of the cancellation or surrender of the subsidiary's stock if the motor vehicle was previously titled, licensed, and registered in this state;

            (7)    Any motor vehicle transferred between an individual and a corporation if the individual and the owner of the majority of the capital stock of the corporation are one and the same, or any motor vehicle transferred between an individual and a limited liability company if the individual and the majority member of the limited liability company are one and the same, and if the motor vehicle was previously titled, licensed, and registered in this state;

            (8)    Any motor vehicle transferred between a corporation or limited liability company and its stockholders, members, or creditors if to effectuate a dissolution of the corporation or limited liability company it is necessary to transfer the title from the corporate entity or limited liability company to the stockholders, members, or creditors and if the motor vehicle was previously titled, licensed, and registered in this state;

            (9)    Any motor vehicle transferred between an individual and a limited or general partnership if the individual and the owner of the majority interest in the partnership are one and the same person and if the motor vehicle was previously titled, licensed, and registered in this state;

            (10)    Any motor vehicle transferred to effect a sale of all or substantially all of the assets of the

business entity if the motor vehicle was previously titled, licensed, and registered in this state;

            (11)    Any motor vehicle acquired by a secured party or lien holder in satisfaction of a debt;

            (12)    Any motor vehicle sold or transferred that is eleven or more model years old and that is sold or transferred for two thousand two hundred dollars or less before trade-in;

            (13)    Any damaged motor vehicle transferred to an insurance company in the settlement of an insurance claim;

            (14)    Any motor vehicle owned by a former resident of this state who returns to the state and who had previously paid vehicle excise tax to this state on the motor vehicle as evidenced within the department's records or by submission of other acceptable proof of payment of such tax;

            (15)    Any motor vehicle transferred between corporations, both subsidiary and nonsubsidiary, if the individuals who hold a majority of stock in the first corporation also hold a majority of stock in the second corporation; but these individuals need not hold the same ratio of stock in both corporations and if the motor vehicle was previously titled, licensed, and registered in this state;

            (16)    Any motor vehicle transferred between limited liability companies, both subsidiary and nonsubsidiary, if the individuals who hold a majority interest in the first limited liability company also hold a majority interest in the second limited liability company and if the motor vehicle was previously titled, licensed, and registered in this state;

            (17)    Any motor vehicle transferred by a trustor to a trustee or from a trustee to a beneficiary of a trust;

            (18)    Any motor vehicle rented for twenty-eight days or less is subject to the tax imposed by § 32-5B-20; and

            (19)    Any motor vehicle transferred without consideration to any South Dakota nonprofit corporation organization that is exempt under § 501(c)(3) of the Internal Revenue Code and that will donate the motor vehicle to a needy family or individual; and

            (20)    Any motor vehicle transferred without consideration to any South Dakota nonprofit organization that is exempt under § 501 (c)(3) of the Internal Revenue Code and that sells the motor vehicle within forty-five days of the transfer.

     Signed February 23, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\160.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\161.wpd
CHAPTER 161

(HB 1098)

Motor vehicle exemption from the motor vehicle excise tax.


        ENTITLED, An Act to revise certain provisions regarding the exemption of motor vehicles from the motor vehicle excise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-5B-2 be amended to read:

    32-5B-2. Motor vehicles exempted from the provisions of this chapter are as follows:

            (1)    Any motor vehicle exempted in § 32-5-1.3, 32-5-42, 32-5-42.1, or 32-5-42.2;

            (2)    Any motor vehicle acquired by inheritance from or bequest of a decedent;

            (3)    Any motor vehicle previously titled or licensed jointly in the names of two or more persons and subsequently transferred without consideration to one or more of such persons;

            (4)    Any motor vehicle transferred without consideration between spouses, between a parent and child, and between siblings;

            (5)    Any motor vehicle transferred pursuant to any mergers or consolidations of corporations or limited liability companies, or plans of reorganization by which substantially all of the assets of a corporation or limited liability company are transferred if the motor vehicle was previously titled, licensed, and registered in this state;

            (6)    Any motor vehicle transferred by a subsidiary corporation or limited liability company to its parent corporation or limited liability company for no or nominal consideration or in sole consideration of the cancellation or surrender of the subsidiary's stock if the motor vehicle was previously titled, licensed, and registered in this state;

            (7)    Any motor vehicle transferred between an individual and a corporation if the individual and the owner of the majority of the capital stock of the corporation are one and the same, or any motor vehicle transferred between an individual and a limited liability company if the individual and the majority member of the limited liability company are one and the same, and if the motor vehicle was previously titled, licensed, and registered in this state;

            (8)    Any motor vehicle transferred between a corporation or limited liability company and its stockholders, members, or creditors if to effectuate a dissolution of the corporation or limited liability company it is necessary to transfer the title from the corporate entity or limited liability company to the stockholders, members, or creditors and if the motor vehicle was previously titled, licensed, and registered in this state;

            (9)    Any motor vehicle transferred between an individual and a limited or general partnership if the individual and the owner of the majority interest in the partnership are one and the same person and if the motor vehicle was previously titled, licensed, and registered in this state;

            (10)    Any motor vehicle transferred to effect a sale of all or substantially all of the assets of the business entity if the motor vehicle was previously titled, licensed, and registered in this state;

            (11)    Any motor vehicle acquired by a secured party or lien holder in satisfaction of a debt;

            (12)    Any motor vehicle sold or transferred that is eleven or more model years old and that is sold or transferred for two thousand two hundred two thousand five hundred dollars or less before trade-in;

            (13)    Any damaged motor vehicle transferred to an insurance company in the settlement of an insurance claim;

            (14)    Any motor vehicle owned by a former resident of this state who returns to the state and

who had previously paid vehicle excise tax to this state on the motor vehicle as evidenced within the department's records or by submission of other acceptable proof of payment of such tax;

            (15)    Any motor vehicle transferred between corporations, both subsidiary and nonsubsidiary, if the individuals who hold a majority of stock in the first corporation also hold a majority of stock in the second corporation; but these individuals need not hold the same ratio of stock in both corporations and if the motor vehicle was previously titled, licensed, and registered in this state;

            (16)    Any motor vehicle transferred between limited liability companies, both subsidiary and nonsubsidiary, if the individuals who hold a majority interest in the first limited liability company also hold a majority interest in the second limited liability company and if the motor vehicle was previously titled, licensed, and registered in this state;

            (17)    Any motor vehicle transferred by a trustor to a trustee or from a trustee to a beneficiary of a trust;

            (18)    Any motor vehicle rented for twenty-eight days or less is subject to the tax imposed by § 32-5B-20; and

            (19)    Any motor vehicle transferred without consideration to any South Dakota nonprofit corporation that will donate the motor vehicle to a needy family or individual.

     Signed February 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\161.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\162.wpd
CHAPTER 162

(HB 1121)

Classic motor vehicle dealer regulated.


        ENTITLED, An Act to revise certain provisions concerning the regulation of vehicle dealers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-6B-17 be amended to read:

    32-6B-17. If the applicant sets up a principal place of business in more than one county of this state, the applicant shall secure a separate license for each county. However, a vehicle dealer or used vehicle dealer who sells or displays, at a public auction on consignment, a vehicle that is twenty model years or older or an emergency vehicle dealer is not required to secure a separate license for each county if the licensee has otherwise complied with this chapter. No license for any additional county may be issued until the department is furnished with proof that the applicant has a principal place of business in such county and has otherwise complied with this chapter.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\162.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\163.wpd
CHAPTER 163

(HB 1188)

School bus exemption from commercial motor vehicle fees.


        ENTITLED, An Act to exempt certain operations of school buses from commercial motor vehicle fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-9-3 be amended to read:

    32-9-3. For the purposes of this chapter, the following do not come within the definition of "motor carriers" or "commercial vehicles" if used in intrastate operations:

            (1)    A motor vehicle registered in South Dakota used to carry private business property of five hundred pounds or less;

            (2)    A motor vehicle chassis registered in South Dakota on which is mounted a cornsheller, grain cleaner, feed grinder, grain and alfalfa feed mixing machine, haystack mover, sawmill, water well drilling equipment, power shovel, ditchdigger, mobile crane which exceeds the maximum size or weight limits prescribed by chapter 32-22, drag line, posthole auger, and which is not used for demonstration or display purposes outside the limits of a municipality, or a truck tractor and trailer carrying permanently mounted hay grinding equipment;

            (3)    Any motor vehicle registered in South Dakota used for the transportation of liquid or solid livestock waste including trailers and equipment used to load liquid or solid livestock waste and any vehicle registered in South Dakota used for the application, distribution, spraying, or transportation from retail business to user of dry, liquid, or anhydrous ammonia fertilizers or agricultural chemicals;

            (4)    A motor vehicle registered in South Dakota of less than thirty thousand pounds gross weight owned by a merchant licensed under chapter 10-45 or the merchant's commissioned paid employee and used to transport the merchant's previously sold merchandise to a purchaser outside the limits of a municipality and to return exchanged property or to transport fuels to a purchaser within a municipality or an unincorporated town which is without such service;

            (5)    A motor vehicle registered in South Dakota, owned by a farmer of this state and used by or for the farmer to transport property for the farmer's farming operation, to transport farm property from farm to farm or from a community or market to the farm or from the farm to a community or market, to transport livestock in a vehicle or combination of vehicles registered at twenty-six thousand pounds or less without monetary compensation, or to transport farm property when the vehicles are used as reimbursement in the ordinary exchange of farm work;

            (6)    A motor vehicle registered in South Dakota operated by or for its owner and exclusively used to transport products originating in or produced from logging or mining operations or lumber milling waste products if such products are owned in fee by the motor vehicle owner;

            (7)    Any motor vehicle, trailer, semitrailer, motor propelled, or trailed vehicle chassis

registered in South Dakota, which is used exclusively on the job site for the construction of township roads, stock water dugouts, dams, farm and ranch irrigation systems, or other soil and water conservation projects on farms and ranches, or for the construction or maintenance of highways in the State of South Dakota. Prior to moving any such vehicle or equipment between job sites or from job site to a central location, the owner shall register the vehicle or equipment pursuant to § 32-9-58;

            (8)    A motor vehicle used principally for providing prearranged transportation of persons to or from their place of employment and is operated by a person who does not drive the vehicle for the person's principal occupation, but is driving it only to or from the person's principal place of employment or for personal use as permitted by the owner of the vehicle;

            (9)    A motor vehicle that is not for hire and is operated solely for educational purposes by a student or an instructor as part of a heavy motor vehicle or heavy equipment operator's course offered by a nonprofit postsecondary institution located in the state;

            (10)    A motor vehicle used for personal purposes and not operated for private business use;

            (11)    A motor vehicle used for recreational purposes and not operated for private business use;

            (12)    A motor vehicle, trailer, semitrailer, motor propelled, or trailed vehicle chassis, registered in South Dakota and used to move equipment involved in soil and water conservation projects or township road work when operated between job sites or from a job site to a central location or point of repair;

            (13)    Any motor vehicle used by an implement dealer to transport farm machinery to and from a county fair or the state fair;

            (14)    A motor vehicle owned by a licensed motor vehicle dealer and used to transport inventory replacement vehicles to the dealer's principal place of business. For the purpose of this subdivision, motor vehicle does not include any motor vehicle which carries inventory replacement vehicles entirely upon its own structure;

            (15)    A school bus registered in South Dakota operated under the provisions of § 32-32-13 and in possession of a letter issued by the highway patrol for each event verifying the bus is operated in compliance with § 32-32-13.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\163.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\164.wpd
CHAPTER 164

(HB 1230)

Animal-drawn vehicle operation.


        ENTITLED, An Act to require lights on certain animal-drawn vehicles while operating on a highway.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 32-17 be amended by adding a NEW SECTION to read:


    Any animal-drawn vehicle operating on a highway during the period from a half hour after sunset to a half hour before sunrise and at any other time when there is not sufficient light to render the vehicle clearly discernible to any person on the highway at a distance of two hundred feet ahead, shall be equipped with a flashing amber light that is visible from the front of the vehicle and a red flashing light visible from the rear of the vehicle. The red flashing light shall have a minimum diameter of four inches with at least three square inches of surface. A violation of this section is a Class 2 misdemeanor.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\164.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\165.wpd
CHAPTER 165

(SB 33)

Driver license revocation for minors, clarified.


        ENTITLED, An Act to revise certain provisions regarding chemical testing and revocations of driver licenses for persons under the age of twenty-one.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-23-11.1 be amended to read:

    32-23-11.1. A person's license to drive is not subject to revocation as provided in § 32-23-11 or 32-23-18 if that person pleads guilty to violating § 32-23-1, or if the charge of violating § 32-23-1 is dismissed by the state prior to the departmental hearing and the person is not convicted of a violation of § 32-24-1 or 32-24-8, or, if a hearing is not requested, prior to a revocation order being issued § 32-23-21 before a revocation order is issued.

    Section 2. That § 32-23-18 be amended to read:

    32-23-18. The Department of Public Safety shall revoke the license of any person arrested for violating § 32-23-1 or 32-23-21, who refuses to submit to a chemical analysis as directed requested by a law enforcement officer pursuant to § 32-23-10.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\165.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\166.wpd
CHAPTER 166

(SB 34)

Chemical testing for commercial motor vehicle drivers, revised.


        ENTITLED, An Act to revise certain provisions regarding the chemical testing of commercial drivers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 32-12A-46 be amended to read:


    32-12A-46. Any person who holds or is required to hold a commercial learner's permit or commercial driver license and operates any commercial or noncommercial motor vehicle in this state is considered to have given consent to the withdrawal of blood or other bodily substance to determine the amount of alcohol in that person's blood, or to determine the presence of any controlled drug or substance. The chemical analysis shall be administered at the direction of a law enforcement officer who, after stopping or detaining the commercial motor vehicle driver any person who holds or is required to hold a commercial learner's permit or commercial driver license, has probable cause to believe that the driver person was driving or in actual physical control of a commercial or noncommercial motor vehicle while having any alcohol or drugs in that person's system. Any person requested by a law enforcement officer under this section to submit to a chemical analysis shall be advised by the officer that:

            (1)    If the person refuses to submit to the chemical analysis, none shall be given; and

            (2)    If the person refuses to submit to the chemical analysis requested, the person shall be immediately:

            (a)    Immediately placed out of service for a period of twenty-four hours, if operating a commercial motor vehicle at the time of the refusal; and be disqualified

            (b)    Disqualified from operating a commercial motor vehicle for a period of not less than one year; or

            (3)    If the person submits to a chemical analysis which discloses that the person was operating the commercial motor vehicle while there was 0.04 percent or more by weight of alcohol in that person's blood the person shall be disqualified from operating a commercial motor vehicle for not less than one year.

    Section 2. That § 32-12A-36 be amended to read:

    32-12A-36. Any person is disqualified from driving a commercial motor vehicle for a period of not less than one year:

            (1)    If convicted of a first violation of driving or being in actual physical control of a commercial or noncommercial motor vehicle while under the influence of alcohol, or any controlled drug or substance, in violation of § 32-23-1;

            (2)    If convicted of a first violation of driving or being in actual physical control of a commercial motor vehicle while there is 0.04 percent or more by weight of alcohol in that person's blood as shown by chemical analysis of that person's breath, blood or other bodily substance, in violation of § 32-12A-44;

            (3)    If convicted of a first violation of leaving the scene of an accident while operating a commercial or noncommercial motor vehicle, in violation of § 32-34-5 or 32-34-6;

            (4)    If convicted of a first violation of using a commercial or noncommercial motor vehicle in the commission of any felony other than a felony described in § 32-12A-38; or

            (5)    For refusing to submit to a chemical analysis for purposes of determining the amount of alcohol in that person's blood while driving a commercial or noncommercial motor vehicle in violation of § 32-23-11,  32-12A-43, or 32-12A-46;

            (6)    If convicted of a first violation of operating a commercial motor vehicle while the person's commercial driver license is revoked, suspended, or canceled or the person is disqualified from operating a commercial motor vehicle in violation of § 32-12A-8. The department may not issue a new license until one year from the date the person would otherwise have

been entitled to apply for a new license; or

            (7)    If convicted of a first violation of causing a fatality through the negligent operation of a commercial motor vehicle.

    If any of these violations or refusal occurred while transporting hazardous material required to be placarded, the person is disqualified for a period of not less than three years.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\166.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\167.wpd
CHAPTER 167

(HB 1091)

Digital network transportation company regulation.


        ENTITLED, An Act to establish certain requirements regarding insurance for vehicles used to provide rides for a transportation network company and to exempt vehicles used to provide these rides from certain commercial licensing requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Digital network," any online-enabled application, software, website, or system offered or utilized by a transportation network company that enables a prearranged ride with a transportation network company driver;

            (2)    "Personal vehicle," a vehicle that is used by a transportation network company driver to provide a prearranged ride and is owned, leased, or otherwise authorized for use by the transportation network company driver. The term does not include any taxicab, limousine, or for-hire vehicle;

            (3)    "Prearranged ride," the provision of transportation by a driver to a rider, beginning when a driver accepts a rider's request for a ride through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. The term does not include transportation provided through a shared expense carpool or vanpool arrangement or by using a taxicab, limousine, or other for-hire vehicle;

            (4)    "Transportation network company," a corporation, partnership, sole proprietorship, or other entity that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides and that does not control, direct, or manage the personal vehicles or transportation network company drivers that connect to its digital network, except where agreed to by written contract;

            (5)    "Transportation network company driver" or "driver," a person who receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company and who uses a personal vehicle to provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or

payment of a fee;

            (6)    "Transportation network company rider" or "rider," a person who uses a transportation network company's digital network to connect with a transportation network driver who provides a prearranged ride to the person in the driver's personal vehicle between points chosen by the person.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Before a transportation network company allows a person to act as a transportation network company driver on the transportation network company's digital network, the transportation network company shall require the person to submit to the transportation network company an application that includes:

            (1)    The person's name, address, and age;

            (2)    A copy of the person's driver license;

            (3)    The registration for the personal vehicle that the person will use to provide prearranged rides;

            (4)    Proof of financial responsibility for the personal vehicle of a type and in the amounts required by the transportation network company; and

            (5)    Any other information required by the transportation network company.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Before a transportation network company allows a person to act as a driver on the transportation network company digital network, the transportation network company shall conduct, or contract with a third party to conduct:

            (1)    A local and national criminal background check;

            (2)    A search of the national sex offender registry; and

            (3)    Obtain a copy of the person's driving record maintained under § 32-12-61.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    A transportation network company may not knowingly allow to act as a transportation network company driver on the transportation network company's digital network a person:

            (1)    Who has received judgments for more than three moving traffic violations in the preceding three years, or at least one violation involving reckless driving or driving on a suspended or revoked license in the preceding three years;

            (2)    Who has been convicted in the preceding seven years of a felony;

            (3)    Who has been convicted in the preceding seven years of a misdemeanor involving:

            (a)    Resisting a law enforcement officer;

            (b)    Dishonesty;

            (c)    Injury to a person;

            (d)    Operating a motor vehicle while intoxicated;

            (e)    Operating a motor vehicle in a manner that endangers a person;

            (f)    Operating a motor vehicle with a suspended or revoked driver license; or

            (g)    Damage to the property of another person;

            (4)    Who is a match in the state or national sex offender registry; or

            (5)    Who is unable to provide information required under section 3 of this Act.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    A transportation network company shall establish and enforce a zero tolerance policy for drug and alcohol use by transportation network company drivers during any period when a transportation network company driver is engaged in, or is logged into the transportation network company's digital network but is not engaged in, a prearranged ride. The policy shall include provisions for:

            (1)    Investigations of alleged policy violations; and

            (2)    Suspensions of transportation network company drivers under investigation.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    A transportation network company shall require that a personal vehicle used to provide any prearranged ride shall comply with all applicable laws and rules concerning vehicle equipment.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    A transportation network company driver or transportation network company on the driver's behalf shall maintain primary motor vehicle insurance that recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport riders for compensation and covers the driver while:

            (1)    The driver is logged on to the transportation network company's digital network; or

            (2)    The driver is engaged in a prearranged ride.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    The following motor vehicle insurance requirements apply while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride:

            (1)    Primary motor vehicle liability insurance in the amount of at least fifty thousand dollars for death and bodily injury per person, one hundred thousand dollars for death and bodily injury per incident, and twenty-five thousand dollars for property damage;

            (2)    Uninsured and underinsured coverage as required by §§ 58-11-9 and 58-11-9.4; and

            (3)    The coverage requirements of subdivision (1) may be satisfied by motor vehicle insurance maintained by the transportation network company driver, motor vehicle insurance maintained by the transportation network company, or any combination of such insurance.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    The following motor vehicle insurance requirements apply while a transportation network company driver is engaged in a prearranged ride:

            (1)    Primary motor vehicle liability insurance that provides at least one million dollars for death, bodily injury, and property damage;

            (2)    Uninsured and underinsured coverage as required by §§ 58-11-9 and 58-11-9.4; and

            (3)    The coverage requirements of subdivision (1) may be satisfied by motor vehicle insurance maintained by the transportation network company driver, motor vehicle insurance maintained by the transportation network company, or any combination of such insurance.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    If the insurance maintained by the driver pursuant to section 8 or 9 of this Act has lapsed or does not provide the required coverage, the insurance maintained by the transportation network company shall provide the coverage required by those sections beginning with the first dollar of a claim and has the duty to defend any claim.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    Coverage under a motor vehicle insurance policy maintained by the transportation network company may not be dependent on a personal motor vehicle insurer first denying a claim nor shall a personal motor vehicle insurance policy be required to first deny a claim.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    Any insurance required by sections 8 and 9 of this Act may be placed with an insurer licensed under title 58, or with a surplus lines insurer eligible under title 58.

    Section 13. That the code be amended by adding a NEW SECTION to read:

    Any insurance satisfying the requirements of section 8 or 9 of this Act shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under § 32-35-113.

    Section 14. That the code be amended by adding a NEW SECTION to read:

    A transportation network company driver shall carry proof of coverage satisfying sections 8 and 9 of this Act at all times during the driver's use of a vehicle in connection with a transportation network company's digital network. If there is an accident, a transportation network company driver shall provide proof of insurance coverage information to the directly interested parties, motor vehicle insurers, and investigating law enforcement officers, upon request. Upon such request, a transportation network company driver shall also disclose to directly interested parties, motor vehicle insurers, and investigating law enforcement officers, whether the driver was logged on to the transportation network company's digital network or on a prearranged ride at the time of an accident.

    Section 15. That the code be amended by adding a NEW SECTION to read:

    The transportation network company shall disclose in writing to each transportation network company driver the following before the driver is allowed to accept a request for a prearranged ride on the transportation network company's digital network:

            (1)    The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and

            (2)    That the transportation network company driver's own motor vehicle insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride, depending on its terms.

    Section 16. That the code be amended by adding a NEW SECTION to read:

    Any insurer that writes motor vehicle insurance in this state may exclude any coverage afforded under the policy issued to an owner or operator of a personal vehicle for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride. This right to exclude all coverage may apply to any coverage included in a motor vehicle insurance policy including:

            (1)    Liability coverage for bodily injury and property damage;

            (2)    Personal injury protection coverage;

            (3)    Uninsured and underinsured motorist coverage;

            (4)    Medical payments coverage;

            (5)    Comprehensive physical damage coverage; and

            (6)    Collision physical damage coverage.

    Section 17. That the code be amended by adding a NEW SECTION to read:

    Any exclusions as allowed by section 16 of this Act applies notwithstanding any requirement under chapter 32-35. Nothing in this Act implies or requires that a personal motor vehicle insurance policy provide coverage while the driver is logged on to the transportation network company's digital network, while the driver is engaged in a prearranged ride, or while the driver otherwise uses a vehicle to transport riders for compensation.

    Section 18. That the code be amended by adding a NEW SECTION to read:

    Nothing in this Act requires an insurer to use any particular policy language or reference to section 16 of this Act in order to exclude any and all coverage for any loss or injury that occurs while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ride.

    Section 19. That the code be amended by adding a NEW SECTION to read:

    Nothing in this Act precludes an insurer from providing primary or excess coverage for the transportation network company driver's vehicle, if it so chose to do so by contract or endorsement.

    Section 20. That the code be amended by adding a NEW SECTION to read:

    Any motor vehicle insurer that excludes the coverage described in section 8 or 9 of this Act has no duty to defend or indemnify any claim expressly excluded by the policy. Nothing in this Act invalidates or limits an exclusion contained in a policy including any policy in use or approved for use in this state prior to the enactment of this Act that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.

    Section 21. That the code be amended by adding a NEW SECTION to read:

    A motor vehicle insurer that defends or indemnifies a claim against a driver that is excluded

under the terms of the insurer's policy, shall have a right of contribution against other insurers that provide motor vehicle insurance to the same driver in satisfaction of the coverage requirements of sections 8 or 9 of this Act at the time of loss.

    Section 22. That the code be amended by adding a NEW SECTION to read:

    In a claims coverage investigation, transportation network companies shall immediately provide upon request by directly involved parties or any insurer of the transportation network company driver if applicable, the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident. Any insurer providing coverage as set forth in sections 8 and 9 of this Act shall disclose upon request by any other such insurer involved in the particular claim, the applicable coverages, exclusions, and limits provided under any motor vehicle insurance maintained in order to satisfy the requirements of sections 8 and 9 of this Act.

    Section 23. That § 32-9-3 be amended to read:

    32-9-3. For the purposes of this chapter, the following do not come within the definition of "motor carriers" or "commercial vehicles" if used in intrastate operations:

            (1)    A motor vehicle registered in South Dakota used to carry private business property of five hundred pounds or less;

            (2)    A motor vehicle chassis registered in South Dakota on which is mounted a cornsheller, grain cleaner, feed grinder, grain and alfalfa feed mixing machine, haystack mover, sawmill, water well drilling equipment, power shovel, ditchdigger, mobile crane which exceeds the maximum size or weight limits prescribed by chapter 32-22, drag line, posthole auger, and which is not used for demonstration or display purposes outside the limits of a municipality, or a truck tractor and trailer carrying permanently mounted hay grinding equipment;

            (3)    Any motor vehicle registered in South Dakota used for the transportation of liquid or solid livestock waste including trailers and equipment used to load liquid or solid livestock waste and any vehicle registered in South Dakota used for the application, distribution, spraying, or transportation from retail business to user of dry, liquid, or anhydrous ammonia fertilizers or agricultural chemicals;

            (4)    A motor vehicle registered in South Dakota of less than thirty thousand pounds gross weight owned by a merchant licensed under chapter 10-45 or the merchant's commissioned paid employee and used to transport the merchant's previously sold merchandise to a purchaser outside the limits of a municipality and to return exchanged property or to transport fuels to a purchaser within a municipality or an unincorporated town which is without such service;

            (5)    A motor vehicle registered in South Dakota, owned by a farmer of this state and used by or for the farmer to transport property for the farmer's farming operation, to transport farm property from farm to farm or from a community or market to the farm or from the farm to a community or market, to transport livestock in a vehicle or combination of vehicles registered at twenty-six thousand pounds or less without monetary compensation, or to transport farm property when the vehicles are used as reimbursement in the ordinary exchange of farm work;

            (6)    A motor vehicle registered in South Dakota operated by or for its owner and exclusively used to transport products originating in or produced from logging or mining operations or lumber milling waste products if such products are owned in fee by the motor vehicle

owner;

            (7)    Any motor vehicle, trailer, semitrailer, motor propelled, or trailed vehicle chassis registered in South Dakota, which is used exclusively on the job site for the construction of township roads, stock water dugouts, dams, farm and ranch irrigation systems, or other soil and water conservation projects on farms and ranches, or for the construction or maintenance of highways in the State of South Dakota. Prior to moving any such vehicle or equipment between job sites or from job site to a central location, the owner shall register the vehicle or equipment pursuant to § 32-9-58;

            (8)    A motor vehicle used principally for providing prearranged transportation of persons to or from their place of employment and is operated by a person who does not drive the vehicle for the person's principal occupation, but is driving it only to or from the person's principal place of employment or for personal use as permitted by the owner of the vehicle;

            (9)    A motor vehicle that is not for hire and is operated solely for educational purposes by a student or an instructor as part of a heavy motor vehicle or heavy equipment operator's course offered by a nonprofit postsecondary institution located in the state;

            (10)    A motor vehicle used for personal purposes and not operated for private business use;

            (11)    A motor vehicle used for recreational purposes and not operated for private business use;

            (12)    A motor vehicle, trailer, semitrailer, motor propelled, or trailed vehicle chassis, registered in South Dakota and used to move equipment involved in soil and water conservation projects or township road work when operated between job sites or from a job site to a central location or point of repair;

            (13)    Any motor vehicle used by an implement dealer to transport farm machinery to and from a county fair or the state fair;

            (14)    A motor vehicle owned by a licensed motor vehicle dealer and used to transport inventory replacement vehicles to the dealer's principal place of business. For the purpose of this subdivision, motor vehicle does not include any motor vehicle which carries inventory replacement vehicles entirely upon its own structure; and

            (15)    A motor vehicle used to provide any prearranged ride as defined by section 1 of this Act.

    Section 24. That the code be amended by adding a NEW SECTION to read:

    Nothing in this Act may be construed to limit further regulation of a transportation network company enacted by a municipality or county. However, no municipality or county may enact further regulations relating to the insurance requirements provided in this Act.

     Signed March 22, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\167.wpd



MILITARY AFFAIRS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\168.wpd
CHAPTER 168

(SB 114)

Appropriation to commission the USS South Dakota.


        ENTITLED, An Act to make an appropriation for certain costs related to the commissioning of the USS South Dakota and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of one hundred thousand dollars ($100,000), or so much thereof as may be necessary, to the Department of the Military to support activities related to the commissioning of the USS South Dakota-SSN 790, educate the people of South Dakota about the nuclear-powered submarine, and sponsor visits of the submarine's crew to South Dakota.

    Section 2. The secretary of the Department of the Military shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\168.wpd

PUBLIC HEALTH AND SAFETY

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\169.wpd
CHAPTER 169

(HB 1028)

Department of Health statutory clean-up.


        ENTITLED, An Act to repeal certain outdated and obsolete statutes related to the Department of Health.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-43-2.1 be repealed.

    Section 2. That § 1-43-2.2 be repealed.

    Section 3. That § 1-43-2.3 be repealed.

    Section 4. That § 1-43-2.4 be repealed.

    Section 5. That § 1-43-2.5 be repealed.

    Section 6. That § 1-43-2.6 be repealed.

    Section 7. That § 1-43-2.7 be repealed.

    Section 8. That § 1-43-2.8 be repealed.

    Section 9. That § 1-43-2.9 be repealed.

    Section 10. That § 1-43-2.10 be repealed.

    Section 11. That § 1-43-2.11 be repealed.

    Section 12. That § 1-43-3 be repealed.

    Section 13. That § 34-1-19 be repealed.

    Section 14. That § 34-18A-1 be repealed.

    Section 15. That § 34-18A-2 be repealed.

    Section 16. That § 34-18A-3 be repealed.

    Section 17. That § 34-18A-4 be repealed.

    Section 18. That § 34-18A-5 be repealed.

    Section 19. That § 34-18A-6 be repealed.

    Section 20. That § 34-18A-7 be repealed.

    Section 21. That § 34-18A-8 be repealed.

    Section 22. That § 34-18A-9 be repealed.

    Section 23. That § 34-20B-93 be repealed.

    Section 24. That § 34-20B-94 be repealed.

    Section 25. That § 34-20B-95 be repealed.

    Section 26. That § 34-20B-96 be repealed.

    Section 27. That § 34-20B-97 be repealed.

    Section 28. That § 34-20B-98 be repealed.


    Section 29. That § 34-20B-99 be repealed.

    Section 30. That § 34-20B-101 be repealed.

    Section 31. That § 34-20B-102 be repealed.

    Section 32. That § 34-20B-110 be repealed.

    Section 33. That § 34-24-26 be repealed.

     Signed February 8, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\169.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\170.wpd
CHAPTER 170

(SB 27)

Ambulance service requirements revised.


        ENTITLED, An Act to revise certain personnel requirements for ambulance services and to repeal the hardship exemption.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 34-11 be amended by adding a NEW SECTION to read:

    The minimum personnel required on each ambulance run includes:

            (1)    One emergency medical technician certified by the Department of Health or an advanced life support personnel licensed pursuant to chapter 36-4B; and

            (2)    One driver who meets the requirements established by the Department of Health pursuant to rules promulgated pursuant to § 34-11-5.

    Section 2. That § 34-11-5 be amended to read:

    34-11-5. The Department of Health may adopt rules, pursuant to chapter 1-26, relating to the operation of ambulance services including patient care, personnel, medical and maintenance equipment, sanitary conditions, and necessary supplies. Each operator shall comply with all rules established pursuant to this section by the licensing agency unless exempted due to extreme hardship as determined by departmental rule.

    Section 3. That ARSD 44:05:02:03 be repealed.

    Section 4. That ARSD 44:05:02:03.01 be repealed.

    Section 5. That ARSD 44:05:02:03.02 be repealed.

    Section 6. That ARSD 44:05:03:04 be repealed.

     Signed February 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\170.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\171.wpd
CHAPTER 171

(HB 1026)

Annual inspection of licensed health care facilities.


        ENTITLED, An Act to revise certain provisions regarding the annual inspection requirement for licensed health care facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-12-16 be amended to read:

    34-12-16. Any building, institution, or establishment for which a license is issued under this chapter shall be inspected at least annually by a duly appointed representative of the State by the Department of Health under rules established by the department pursuant to § 34-12-13 in compliance with chapter 1-26. The provisions of this section do not apply to a licensed hospital or licensed chemical dependency treatment facility surveyed and accredited under the standards of the accreditation program of the joint commission on accreditation of health care organizations that submits to the State Department of Health department, within a reasonable time, copies of its currently valid accreditation certificate and accreditation letter, together with accompanying recommendations and comments and any further recommendations, progress reports, and correspondence directly related to the accreditation. However, the State Department of Health department may inspect all licensed hospitals or licensed chemical dependency treatment facilities to determine compliance with rules promulgated pursuant to subdivisions 34-12-13(1), (2), and (3).

    The State Department of Health department retains the right of access to all hospital or licensed chemical dependency treatment facility premises and to relevant records to investigate complaints or to follow through on corrective measures related to deficiencies identified by the joint commission survey process which are in conflict with state law or regulations promulgated thereunder rule. If, prior to an inspection, the operator refuses to allow the inspection, no inspection shall may be made. If, during the course of the inspection, the operator refuses to allow the inspection to continue, the inspection shall cease. In such cases, the department may immediately initiate revocation proceedings pursuant to chapter 1-26 against the operator's license.

     Signed February 8, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\171.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\172.wpd
CHAPTER 172

(SB 148)

Additional nursing facility beds
for the Michael J. Fitzmaurice Veterans Home.


        ENTITLED, An Act to authorize additional nursing facility beds for the Michael J. Fitzmaurice Veterans Home and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 34-12 be amended by adding a NEW SECTION to read:


    Notwithstanding the provisions of § 34-12-35.4, the Department of Veterans Affairs may increase the number of nursing facility beds at the Michael J. Fitzmaurice Veterans Home. The total number of beds the nursing facility may operate may not exceed seventy-six.

    Section 2. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\172.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\173.wpd
CHAPTER 173

(SB 138)

Construction of a nursing home facility in Rosebud, South Dakota.


        ENTITLED, An Act to authorize the construction of a nursing home facility in Rosebud, South Dakota.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 34-12 be amended by adding a NEW SECTION to read:

    Notwithstanding the provisions of §§ 34-12-39.2 and 34-12-35.4, a new nursing facility may be constructed on the Rosebud Indian Reservation for replacement of the nursing facility currently located in White River, South Dakota. The nursing facility shall meet the specifications of this chapter for a licensed nursing facility in order to participate in the medicaid program. The number of beds in the replacement nursing facility may not exceed fifty-two.

    Section 2.This Act is repealed on June 30, 2021.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\173.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\174.wpd
CHAPTER 174

(HB 1079)

Possession of an opioid antagonist permitted.


        ENTITLED, An Act to permit the prescription and possession of an opioid antagonist in certain instances.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    A person who is a family member, friend, or other close third party to a person at risk for an opioid-related drug overdose may be prescribed, possess, distribute, or administer an opioid antagonist that is prescribed, dispensed, or distributed by a licensed health care professional directly or by standing order pursuant to this Act.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    A licensed health care professional may, directly or by standing order, prescribe an opioid antagonist to a person at risk of experiencing an opioid-related overdose, or prescribe to a family member, friend, or other close third party person the health care practitioner reasonably believes to be in a position to assist a person at risk of experiencing an opioid-related overdose.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    A health care professional who is authorized to prescribe or dispense an opioid antagonist is not subject to any disciplinary action or civil or criminal liability for the prescribing or dispensing of an opioid antagonist to a person whom the health care professional reasonably believes may be in a position to assist or administer the opioid antagonist to a person at risk for an opioid-related drug overdose.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    For the purpose of this Act, any prescription issued pursuant to this Act is deemed to be issued for a legitimate medical purpose in the usual course of professional practice.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The provisions of this Act do not establish a duty or standard of care with respect to the decision of whether to prescribe, dispense, or administer an opioid antagonist.

     Signed March 16, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\174.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\175.wpd
CHAPTER 175

(HB 1025)

Controlled substances schedule revised.


        ENTITLED, An Act to place certain substances on the controlled substances schedule and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-20B-4.1 be amended to read:

    34-20B-4.1. An anabolic steroid is any drug or hormonal substance, chemically and pharmacologically related to testosterone, other than estrogens, progestins, and corticosteroids, that promotes muscle growth and includes:

            (1)    Androstanediol:

            (a)    3.,17.-dihydroxy-5a-androstane;

            (b)    3.,17.-dihydroxy-5a-androstane;

            (2)    Androstanedione (5.-androstan-3,17-dione);

            (3)    Androstenediol:

            (a)    1-androstenediol (3.,17.-dihydroxy-5.- androst-1-ene);

            (b)    1-androstenediol (3.,17.-dihydroxy-5.- androst-1-ene);

            (c)    4-androstenediol (3.,17.-dihydroxy-androst-4-ene);

            (d)    5-androstenediol (3.,17.-dihydroxy-androst-5-ene);

            (4)    Androstenedione:

            (a)    1-androstenedione ([5.]-androst-1-en-3,17-dione);

            (b)    4-androstenedione (androst-4-en-3,17-dione);

            (c)    5-androstenedione (androst-5-en-3,17-dione);

            (5)    Bolasterone (7.,17.-dimethyl- 17.-hydroxyandrost-4-en-3-one);

            (6)    Boldenone (17.-hydroxyandrost-1,4,-diene-3-one);

            (7)    Calusterone (7.,17.-dimethyl- 17.-hydroxyandrost-4-en-3-one);

            (8)    Clostebol (4-chloro-17.-hydroxyandrost-4-en-3-one);

            (9)    Dehydrochloromethyltestosterone (4-chloro-17.-hydroxy-17.-methyl-androst-1,4- dien-3-one);

            (10)    .1-dihydrotestosterone (a.k.a. '1-testosterone') (17.-hydroxy-5.-androst-1-en- 3-one);

            (11)    4-dihydrotestosterone (17.-hydroxy-androstan-3-one);

            (12)    Drostanolone (17.-hydroxy-2.-methyl -5.-androstan-3-one);

            (13)    Ethylestrenol (17.-ethyl-17.-hydroxyestr-4-ene);

            (14)    Fluoxymesterone (9-fluoro-17.-methyl -11.,17.-dihydroxyandrost-4-en-3-one);

            (15)    Formebolone (2-formyl-17.-methyl- 11.,17.-dihydroxyandrost-1,4-dien-3-one);

            (16)    Furazabol (17.-methyl-17.-hydroxyandrostano[2,3-c]- furazan);

            (17)    13.-ethyl-17.-hydroxygon-4-en-3-one;

            (18)    4-hydroxytestosterone (4,17.-dihydroxy-androst-4-en-3-one);

            (19)    4-hydroxy-19-nortestosterone (4,17.-dihydroxy-estr-4-en-3-one);

            (20)    Mestanolone (17.-methyl-17.-hydroxy- 5.-androstan-3-one);

            (21)    Mesterolone (1.-methyl-17.-hydroxy- [5.]-androstan-3-one);

            (22)    Methandienone (17.-methyl-17.-hydroxyandrost-1,4-dien- 3-one);

            (23)    Methandriol (17.-methyl-3.,17.- dihydroxyandrost-5-ene);

            (24)    Methenolone (1-methyl-17.-hydroxy-5.-androst-1-en-3- one);

            (25)    17.-methyl- 3.,17.-dihydroxy-5a-androstane;

            (26)    17.-methyl- 3.,17.-dihydroxy-5a-androstane;

            (27)    17.-methyl- 3.,17.-dihydroxyandrost-4-ene;

            (28)    17.-methyl-4-hydroxynandrolone (17.-methyl-4-hydroxy- 17.-hydroxyestr-4- en-3-one);

            (29)    Methyldienolone (17.-methyl-17.-hydroxyestra-4,9(10)- dien-3-one);

            (30)    Methyltrienolone (17.-methyl-17.-hydroxyestra-4,9-11- trien-3-one);

            (31)    Methyltestosterone (17.-methyl-17. -hydroxyandrost-4-en-3-one);

            (32)    Mibolerone (7.,17.-dimethyl-17.- hydroxyestr-4-en-3-one);

            (33)    17.-methyl-.1- dihydrotestosterone (17b.-hydroxy-17.-methyl-5.-androst- 1-en-3-one) (also known as 17-.-methyl-1-testosterone);

            (34)    Nandrolone (17.-hydroxyestr-4-en-3-one);

            (35)    Norandrostenediol:

            (a)    19-nor-4-androstenediol (3.,17.-dihydroxyestr-4-ene);

            (b)    19-nor-4-androstenediol (3.,17.-dihydroxyestr-4-ene);

            (c)    19-nor-5-androstenediol (3.,17.-dihydroxyestr-5-ene);

            (d)    19-nor-5-androstenediol (3.,17.-dihydroxyestr-5-ene);

            (36)    Norandrostenedione:

            (a)    19-nor-4-androstenedione (estr-4-en-3,17-dione);

            (b)    19-nor-5-androstenedione (estr-5-en-3,17-dione);

            (37)    Norbolethone (13.,17.-diethyl-17. -hydroxygon-4-en-3-one);

            (38)    Norclostebol (4-chloro-17.-hydroxyestr-4-en-3-one);

            (39)    Norethandrolone (17.-ethyl-17.-hydroxyestr-4-en-3-one);

            (40)    Normethandrolone (17.-methyl-17.-hydroxyestr-4-en-3-one);

            (41)    Oxandrolone (17.-methyl-17.-hydroxy -2-oxa-[5.]-androstan-3-one);

            (42)    Oxymesterone (17.-methyl-4,17.-dihydroxyandrost-4-en- 3-one);

            (43)    Oxymetholone (17.-methyl-2-hydroxymethylene-17.-hydroxy-[5.]-androstan- 3-one);

            (44)    Stanozolol (17.-methyl-17.-hydroxy-[5.]- androst-2-eno[3,2-c]-pyrazole);

            (45)    Stenbolone (17.-hydroxy-2-methyl-[5.]-androst-1-en-3-one);

            (46)    Testolactone (13-hydroxy-3-oxo-13,17-secoandrosta-1,4-dien-17-oic acid lactone);

            (47)    Testosterone (17.-hydroxyandrost-4-en-3-one);

            (48)    Tetrahydrogestrinone (13.,17.-diethyl-17.- hydroxygon-4,9,11-trien-3-one);

            (49)    Trenbolone (17.-hydroxyestr-4,9,11-trien-3-one);

            (50)    Boldione (androsta-1,4-diene-3,17-dione);

            (51)    Desoxymethyltestosterone (17.-methyl-5.-androst-2-en-17.-ol) (also known as madol);

            (52)    19-nor-4,9(10)-androstadienedione (estra-4,9(10)-diene-3,17-dione);

            (53)    Prostanozol (17.-hydroxy-5.-androstano[3,2-c]pyrazole);

            (54)    Methasterone (2.,17.-dimethyl-5.- androstan-17.-ol-3-one); and

            (55)    5a-Androstan-3,6,17-trione;

            (56)    6-bromo-androstan-3,17-dione;

            (57)    6-bromo-androsta-1,4-diene-3,17-dione;

            (58)    4-chloro-17a-methyl-androsta-1,4-diene-3,17b-diol;

            (59)    4-chloro-17a-methyl-androst-4-ene-3b,17b-diol;

            (60)    4-chloro-17a-methyl-17b-hydroxy-androst-4-en-3-one;

            (61)    4-chloro-17a-methyl-17b-hydroxy-androst-4-ene-3,11-dione;

            (62)    4-chloro-17a-methyl-androsta-1,4-diene-3,17b-diol;

            (63)    2a,17a-dimethyl-17b-hydroxy-5a-androstan-3-one;

            (64)    2a,17a-dimethyl-17b-hydroxy-5b-androstan-3-one;

            (65)    2a,3a-epithio-17a-methyl-5a-androstan-17b-ol;

            (66)    [3,2-c]-furazan-5a-androstan-17b-ol;

            (67)    3b-hydroxy-estra-4,9,11-trien-17-one;

            (68)    17a-methyl-androst-2-ene-3,17b-diol;

            (69)    17a-methyl-androsta-1,4-diene-3,17b-diol;

            (70)    Estra-4,9,11-triene-3,17-dione;

            (71)    18a-Homo-3-hydroxy-estra-2,5(10)-dien-17-one;

            (72)    6a-Methyl-androst-4-ene-3,17-dione;

            (73)    17a-Methyl-androstan-3-hydroxyimine-17b-ol;

            (74)    17a-Methyl-5a-androstan-17b-ol;

            (75)    17b-Hydroxy-androstano[2,3-d]isoxazole;

            (76)    17b-Hydroxy-androstano[3,2-c]isoxazole;

            (77)    4-Hydroxy-androst-4-ene-3,17-dione[3,2-c]pyrazole-5a-androstan-17b-ol;

            (78)    [3,2-c]pyrazole-androst-4-en-17b-ol;

            (79)    [3,2-c]pyrazole-5a-androstan-17b-ol; and

            (80)    Any salt, ester, or ether of a drug or substance described or listed in this section, if that salt, ester, or ether promotes muscle growth.

    The term, anabolic steroid, as defined in this section, does not include an anabolic steroid which is expressly intended for administration through implants to cattle or other nonhuman species. However, if any person prescribes, dispenses, or distributes such a steroid for human use, the person shall be considered to have prescribed, dispensed, or distributed an anabolic steroid within the meaning of this section.

    Section 2. That § 34-20B-13 be amended to read:

    34-20B-13. Any of the following opium derivatives, their salts, isomers, and salts of isomers, is included in Schedule I, unless specifically excepted, whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation:

            (1)    Acetylcodone;

            (2)    Benzylmorphine;

            (3)    Codeine methylbromide;

            (4)    Codeine-N-Oxide;

            (5)    Desomorphine;

            (6)    Drotebanol;

            (7)    Heroin;

            (8)    Hydromorphinol;

            (9)    Methydesorphine;

            (10)    Methylhydromorphine;

            (11)    Morphine methylbromide;

            (12)    Morphine methylsulfonate;

            (13)    Morphine-N-Oxide;

            (14)    Myrophine;

            (15)    Nicocodeine;

            (16)    Nicomorphine;

            (17)    Normorphine;

            (18)    Thebacon;

            (19)    3-Methylfentanyl;

            (20)    Fentanyl analogs, except those which are specifically listed in other schedules including acetyl fentanyl, N-(1-phenethylpiperidin-4-yl)-N-phenylacetamide;

            (21)    1-Methyl-4-phenyl-4-propionoxypiperidine; and

            (22)    1-(2-phenethyl)-4-phenyl-4-acetoxypiperidine.

    Section 3. That § 34-20B-16 be amended to read:

    34-20B-16. Any of the following substances including their salts, isomers, and salts of isomers is included in Schedule II except those narcotic drugs listed in other schedules whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis:

            (1)    Opium (except when it meets the requirements of subdivision 34-20B-23(7) or 34-20B-26(5)), coca leaves, and opiate;

            (2)    Any salt, compound, derivative, or preparation of opium, coca leaves (including cocaine), or opiate, excluding apomorphine, dextrorphan, and naloxone, and naloxegol;

            (3)    Any salt, compound, derivative, or preparation thereof which is chemically equivalent or identical with any of the substances referred to in subdivisions (1) and (2), except that these substances may not include decocainized coca leaves or extraction of coca leaves, which extractions do not contain cocaine or ecgonine; and may not include the isoquinoline alkaloids of opium;

            (4)    Opium poppy and poppy straw;

            (5)    Amphetamine;

            (6)    Methamphetamine;

            (7)    Amobarbital;

            (8)    Pentobarbital;

            (9)    Secobarbital;

            (10)    Methylphenidate;

            (11)    Phenmetrazine;

            (12)    Etorphine;

            (13)    Diprenorphine;

            (14)    Deleted by SL 2000, ch 170, § 1;

            (15)    Nabilone;

            (16)    Glutethimide;

            (17)    Phencyclidine immediate precursors:

            (a)    1-phenylcyclohexylamine;

            (b)    1-piperidinocyclohexanecarbonitrile (PCC);

            (18)    Lisdexamfetamine, its salts, isomers, and salts of its isomers; and

            (19)    Tapentadol; and

            (20)    Ioflupane.

    Section 4. That § 34-20B-25 be amended to read:

    34-20B-25. The following are included in Schedule IV:

            (1)    Chlordiazepoxide, but not including librax (chlordiazepoxide hydrochloride and clindinium bromide) or menrium (chlordiazepoxide and water soluble esterified estrogens);

            (2)    Clonazepam;

            (3)    Clorazepate;

            (4)    Diazepam;

            (4A)    Flunitrazepam;

            (5)    Flurazepam;

            (6)    Mebutamate;

            (7)    Oxazepam;

            (8)    Prazepam;

            (9)    Lorazepam;

            (10)    Triazolam;

            (11)    Any substance which contains any quantity of a benzodiazepine, or salt of benzodiazepine, except those substances which are specifically listed in other schedules;

            (11A)    Alprazolam;

            (11B)    Midazolam;

            (11C)    Temazepam;

            (12)    Repealed by SL 2003, ch 183, § 4;

            (13)    Cathine;

            (14)    Fencamfamine;

            (15)    Fenproporex;

            (16)    Mefenorex;

            (17)    Pyrovalerone;

            (18)    Propoxyphene;

            (19)    Pentazocine;

            (20)    Diethylpropion;

            (21)    Ethchlorvynol;

            (22)    Ethinamate;

            (23)    Fenfluramine;

            (24)    Mazindol;

            (25)    Mephobarbital;

            (26)    Methohexitol;

            (27)    Paraldehyde;

            (28)    Pemoline;

            (29)    Petrichloral;

            (30)    Phentermine;

            (31)    Barbital;

            (32)    Phenobarbital;

            (33)    Meprobamate;

            (34)    Zolpidem;

            (35)    Butorphanol;

            (36)    Modafinil, including its salts, isomers, and salts of isomers;

            (37)    Sibutramine;

            (38)    Zaleplon;

            (39)    Dichloralphenazone;

            (40)    Zopiclone (also known as eszopiclone), including its salts, isomers, and salts of isomers;

            (41)    Pregabalin;

            (42)    Lacosamide;

            (43)    Fospropofol, including its salts, isomers, and salts of isomers;

            (44)    Clobazam;

            (45)    Carisoprodol, including its salts, isomers, and salts of isomers;

            (46)    Ezogabine,[-[2-amino-4-(4-fluorobenzylamino)-phenyl]-carbamic acid ethyl ester], including its salts, isomers, and salts of isomers;

            (47)    Lorcaserin, any material, compound, mixture, or preparation which contains any quantity of the following substances, including its salts, isomers, and salts of isomers, whenever the existence of such salts, isomers, and salts of isomers is possible;

            (48)    Alfaxalone, 5[alpha]-pregnan-3[alpha]-ol-11,20-dione, including its salts, isomers, and salts of isomers;

            (49)    Tramadol, 2-[(dimethylamino)methyl]-1-(3-methoxyphenyl)cyclohexanol, its salts, optical and geometric isomers and salts of these isomers; and

            (50)    Suvorexant, including its salts, isomers, and salts of isomers; and

            (51)    Eluxadoline,(5-[[[(2S)-2-amino-3-[4-aminocarbonyl)-2,6-dimethylphenyl]-1-oxopropyl][(1S)-1-(4-phenyl-1H-imidazol-2-yl)ethyl]amino]methyl]-2-methoxybenzoic acid) including its optical isomers and its salts, isomers, and salts of isomers.

    Section 5. Whereas, this Act is necessary for the immediate preservation of the public peace, health, or safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 18, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\175.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\176.wpd
CHAPTER 176

(HB 1157)

Additional information to be provided
before performing an abortion.


        ENTITLED, An Act to require that a doctor provide a woman additional information as a part of informed consent prior to performing an abortion.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-23A-10.1 be amended to read:

    34-23A-10.1. No abortion may be performed unless the physician first obtains a voluntary and informed written consent of the pregnant woman upon whom the physician intends to perform the abortion, unless the physician determines that obtaining an informed consent is impossible due to a medical emergency and further determines that delaying in performing the procedure until an informed consent can be obtained from the pregnant woman or her next of kin in accordance with chapter 34-12C is impossible due to the medical emergency, which determinations shall then be documented in the medical records of the patient. A consent to an abortion is not voluntary and informed, unless, in addition to any other information that must be disclosed under the common law

doctrine, the physician provides that pregnant woman with the following information:

            (1)    A statement in writing providing the following information:

            (a)    The name of the physician who will perform the abortion;

            (b)    That the abortion will terminate the life of a whole, separate, unique, living human being;

            (c)    That the pregnant woman has an existing relationship with that unborn human being and that the relationship enjoys protection under the United States Constitution and under the laws of South Dakota;

            (d)    That by having an abortion, her existing relationship and her existing constitutional rights with regards to that relationship will be terminated;

            (e)    A description of all known medical risks of the procedure and statistically significant risk factors to which the pregnant woman would be subjected, including:

            (i)    Depression and related psychological distress;

            (ii)    Increased risk of suicide ideation and suicide;

            (iii)    A statement setting forth an accurate rate of deaths due to abortions, including all deaths in which the abortion procedure was a substantial contributing factor;

            (iv)    All other known medical risks to the physical health of the woman, including the risk of infection, hemorrhage, danger to subsequent pregnancies, and infertility;

            (f)    The probable gestational age of the unborn child at the time the abortion is to be performed, and a scientifically accurate statement describing the development of the unborn child at that age; and

            (g)    The statistically significant medical risks associated with carrying her child to term compared to undergoing an induced abortion;

            (h)    That even after a pregnant mother takes Mifepristone it is still possible to discontinue a drug-induced abortion by not taking the prescribed Misoprostol; and
            (i)    That information on discontinuing a drug-induced abortion is available on the Department of Health website.

                The disclosures set forth above shall be provided to the pregnant woman in writing and in person no later than two hours before the procedure is to be performed. The physician shall ensure that the pregnant woman signs each page of the written disclosure with the certification that she has read and understands all of the disclosures, prior to the patient signing a consent for the procedure. If the pregnant woman asks for a clarification or explanation of any particular disclosure, or asks any other question about a matter of significance to her, the explanation or answer shall be made in writing and be given to the pregnant woman before signing a consent for the procedure and shall be made part of the permanent medical record of the patient;

            (2)    A statement by telephone or in person, by the physician who is to perform the abortion, or by the referring physician, or by an agent of both, at least twenty-four hours before the

abortion, providing the following information:

            (a)    That medical assistance benefits may be available for prenatal care, childbirth, and neonatal care;

            (b)    That the father of the unborn child is legally responsible to provide financial support for her child following birth, and that this legal obligation of the father exists in all instances, even in instances in which the father has offered to pay for the abortion;

            (c)    The name, address, and telephone number of a pregnancy help center in reasonable proximity of the abortion facility where the abortion will be performed; and

            (d)    That she has a right to review all of the material and information described in § 34-23A-1, §§ 34-23A-1.2 to 34-23A-1.7, inclusive, § 34-23A-10.1, and § 34-23A-10.3, as well as the printed materials described in § 34-23A-10.3, and the website described in § 34-23A-10.4. The physician or the physician's agent shall inform the pregnant woman, orally or in writing, that the materials have been provided by the State of South Dakota at no charge to the pregnant woman. If the pregnant woman indicates, at any time, that she wants to review any of the materials described, such disclosures shall be either given to her at least twenty-four hours before the abortion or mailed to her at least seventy-two hours before the abortion by certified mail, restricted delivery to addressee, which means the postal employee can only deliver the mail to the addressee;

            (3)    A written statement that sex-selective abortions are illegal in the State of South Dakota and that a pregnant mother cannot have an abortion, either solely or partly, due to the unborn child's sex, regardless of whether that unborn child is a girl or a boy or whether it is of the pregnant mother's free will or the result of the use of pressure and coercion.

    Prior to the pregnant woman signing a consent to the abortion, she shall sign a written statement that indicates that the requirements of this section have been complied with. Prior to the performance of the abortion, the physician who is to perform the abortion shall receive a copy of the written disclosure documents required by this section, and shall certify in writing that all of the information described in those subdivisions has been provided to the pregnant woman, that the physician is, to the best of his or her ability, satisfied that the pregnant woman has read the materials which are required to be disclosed, and that the physician believes she understands the information imparted.

    Section 2. That § 34-23A-10.4 be amended to read:

    34-23A-10.4. The Department of Health shall, by January 1, 2004, develop and maintain a multi-media website that contains web pages covering each of the following topics:

            (1)    Embryonic and fetal development at various gestational stages;

            (a)    Anatomical and physiological characteristics; and

            (b)    Survival possibilities of the unborn child;

            (2)    Abortion methods commonly used for each trimester of pregnancy;

            (3)    Statistically significant abortion method risks, including infection, hemorrhage, danger to subsequent pregnancies, and infertility;

            (4)    Important pre-abortion procedures;

            (a)    Confirmation of pregnancy via sonogram; and

            (b)    Counseling and discussion of medical history to detect possible abortion risks;

            (5)    Post-abortion psychological and emotional complications;

            (6)    Parental notification as required by 34-23A-7;

            (7)    Assistance, benefits, and services:

            (a)    Names and contact information of public and private agencies; and

            (b)    Types and availability of public medical benefits and services;

            (8)    Responsibility of the father of the unborn child;

            (9)    Statistically significant pregnancy risks;

            (10)    Adoption options:

            (a)    Names and contact information of public and private agencies; and

            (b)    Description of services;

            (11)    Information on discontinuing a drug-induced abortion.

    The state shall collect and maintain web statistics regarding the website developed and maintained pursuant to this section. However, no personal information may be collected.

     Signed March 16, 2016

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\176.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\177.wpd
CHAPTER 177

(SB 24)

Sale of fetal body parts made a felony.


        ENTITLED, An Act to prohibit the sale of fetal body parts and to provide a penalty therefor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-23A-17 be amended to read:

    34-23A-17. An Any tissue, organ, or body part of an unborn or newborn child who has been subject to an induced abortion, other than an abortion necessary to prevent the death of the mother or any tissue or organ thereof, may not be used in animal or human research or for animal or human transplantation. This section may not be construed to preclude Nothing in this section precludes any therapy intended to directly benefit the unborn or newborn child who has been subject to the abortion. This section does not prohibit the use for human transplantation of an unborn child or any tissue or organ thereof if removed in the course of removal of an ectopic or a molar pregnancy. Any person who knowingly and for consideration provides, acquires, receives, or otherwise transfers any

fetal tissue, organ, or body part in violation of this section is guilty of a Class 6 felony.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\177.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\178.wpd
CHAPTER 178

(HB 1123)

Department of Health to include information
regarding inspections of abortion facilities.


        ENTITLED, An Act to require the Department of Health to include certain information regarding the inspection of an abortion facility on the department's website.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 34-23A be amended by adding a NEW SECTION to read:

    The Department of Health shall include information regarding each inspection of an abortion facility on the department's public website no later than forty-five days after the inspection. The information posted on the website must include the date and the result of each inspection. If the result of the inspection requires an abortion provider to take corrective action, the information must include the details of the required corrective action.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\178.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\179.wpd
CHAPTER 179

(HB 1212)

Pregnancy help center licensure revisions.


        ENTITLED, An Act to revise requirements related to pregnancy help centers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-23A-58.1 be amended to read:

    34-23A-58.1. On or before January 2, 2013, each pregnancy help center which has been placed on the registry of pregnancy help centers maintained by the Department of Health before January 1, 2012, as a condition to remain on the state registry of pregnancy help centers, shall submit a supplemental affidavit that certifies that:

            (1)    It has available either on staff, or pursuant to a collaborative agreement, a licensed counselor, or licensed psychologist, or licensed certified social worker, or licensed social worker, or licensed nurse, or licensed marriage and family therapist, or licensed physician, to provide the counseling related to the assessment for coercion and the associated imparting of information described in §§ 34-23A-53 to 34-23A-62 34-23A-59.2, inclusive; and

            (2)    It shall strictly adhere to the confidentiality requirements set forth in §§ 34-23A-53 to 34-23A-62 34-23A-59.2, inclusive.

    Section 2. That § 34-23A-59.1 be amended to read:

    34-23A-59.1. Any pregnancy help center listed on the Department of Health registry of pregnancy help centers prior to January 1, 2012, shall, beginning on January 1, 2013, have available either on staff or pursuant to a collaborative agreement, a licensed counselor, or licensed psychologist, or licensed certified social worker, or licensed social worker, or licensed nurse, or licensed marriage and family therapist, or a licensed physician to meet privately with the pregnant mother to provide the counseling and meeting required by §§ 34-23A-53 to 34-23A-61 34-23A-59.2, inclusive. Any pregnancy help center placed on the state registry on or after January 1, 2012, shall have one or more such licensed professionals available on staff or pursuant to collaborative agreement for such purposes beginning on January 1, 2012.

    Section 3. That § 34-23A-59 be amended to read:

    34-23A-59. A pregnancy help center consultation required by §§ 34-23A-53 to 34-23A-61 34-23A-59.2, inclusive, shall be implemented as follows:

            (1)    The pregnancy help center shall be permitted to interview the pregnant mother to determine whether the pregnant mother has been subject to any coercion to have an abortion, or is being pressured into having an abortion, and shall be permitted to inform the pregnant mother in writing or orally, or both, what counseling, education, and assistance that is available to the pregnant mother to help her maintain her relationship with her unborn child and help her care for the child both through the pregnancy help center or any other organization, faith-based program, or governmental program. The pregnancy help center may, if it deems it appropriate, discuss matters pertaining to adoption;

            (2)    During the consultation interviews provided for by §§ 34-23A-53 to 34-23A-62 34-23A-59.2, inclusive, no pregnancy help center, its agents or employees, may discuss with any pregnant mother religion or religious beliefs, either of the mother or the counselor, unless the pregnant mother consents in writing;

            (3)    The pregnancy help center is under no obligation to communicate with the abortion provider in any way, and is under no obligation to submit any written or other form of confirmation that the pregnant mother consulted with the pregnancy help center. The pregnancy help center may voluntarily provide a written statement of assessment to the abortion provider, whose name the woman shall give to the pregnancy help center, if the pregnancy help center obtains information that indicates that the pregnant mother has been subjected to coercion or that her decision to consider an abortion is otherwise not voluntary or not informed. The physician shall make the physician's own independent determination whether or not a pregnant mother's consent to have an abortion is voluntary, uncoerced, and informed before having the pregnant mother sign a consent to an abortion. The physician shall review and consider any information provided by the pregnancy help center as one source of information, which in no way binds the physician, who shall make an independent determination consistent with the provisions of §§ 34-23A-53 to 34-23A-62 34-23A-59.2, inclusive, the common law requirements, and accepted medical standards;

            (4)    Any written statement or summary of assessment prepared by the pregnancy help center as a result of counseling of a pregnant mother as a result of the procedures created by §§ 34-23A-53 to 34-23A-62 34-23A-59.2, inclusive, may be forwarded by the pregnancy help center, in its discretion, to the abortion physician. If forwarded to the physician, the written statement or summary of assessment shall be maintained as a permanent part of

the pregnant mother's medical records. Other than forwarding such documents to the abortion physician, no information obtained by the pregnancy help center from the pregnant mother may be released, without the written signed consent of the pregnant mother or unless the release is in accordance with federal, state, or local law;

            (5)    Commencing on September 1, 2016, the counseling authorized pursuant to this section shall be conducted in accordance with the Uniform Policy and Procedures Guidelines developed and promulgated by the South Dakota Association of Registered Pregnancy Help Centers and adopted in 2015.

    Nothing in §§ 34-23A-53 to 34-23A-62 34-23A-59.2, inclusive, may be construed to impose any duties or liability upon a pregnancy help center. However, the failure of a pregnancy help center to comply with the conditions of this Act for being authorized to provide the pregnancy help center counseling, if uncorrected, may result in the Department of Health removing the pregnancy help center from the state's registry of pregnancy help centers.

    Section 4. That § 34-23A-10.1 be amended to read:

    34-23A-10.1. No abortion may be performed unless the physician first obtains a voluntary and informed written consent of the pregnant woman upon whom the physician intends to perform the abortion, unless the physician determines that obtaining an informed consent is impossible due to a medical emergency and further determines that delaying in performing the procedure until an informed consent can be obtained from the pregnant woman or her next of kin in accordance with chapter 34-12C is impossible due to the medical emergency, which determinations shall then be documented in the medical records of the patient. A consent to an abortion is not voluntary and informed, unless, in addition to any other information that must be disclosed under the common law doctrine, the physician provides that pregnant woman with the following information:

            (1)    A statement in writing providing the following information:

            (a)    The name of the physician who will perform the abortion;

            (b)    That the abortion will terminate the life of a whole, separate, unique, living human being;

            (c)    That the pregnant woman has an existing relationship with that unborn human being and that the relationship enjoys protection under the United States Constitution and under the laws of South Dakota;

            (d)    That by having an abortion, her existing relationship and her existing constitutional rights with regards to that relationship will be terminated;

            (e)    A description of all known medical risks of the procedure and statistically significant risk factors to which the pregnant woman would be subjected, including:

            (i)    Depression and related psychological distress;

            (ii)    Increased risk of suicide ideation and suicide;

            (iii)    A statement setting forth an accurate rate of deaths due to abortions, including all deaths in which the abortion procedure was a substantial contributing factor;

            (iv)    All other known medical risks to the physical health of the woman, including the risk of infection, hemorrhage, danger to subsequent

pregnancies, and infertility;

            (f)    The probable gestational age of the unborn child at the time the abortion is to be performed, and a scientifically accurate statement describing the development of the unborn child at that age; and

            (g)    The statistically significant medical risks associated with carrying her child to term compared to undergoing an induced abortion.

                The disclosures set forth above shall be provided to the pregnant woman in writing and in person no later than two hours before the procedure is to be performed in full compliance with § 34-23A-56. The physician shall ensure that the pregnant woman signs each page of the written disclosure with the certification that she has read and understands all of the disclosures, prior to the patient signing a consent for the procedure. If the pregnant woman asks for a clarification or explanation of any particular disclosure, or asks any other question about a matter of significance to her, the explanation or answer shall be made in writing and be given to the pregnant woman before signing a consent for the procedure and shall be made part of the permanent medical record of the patient;

            (2)    A statement by telephone or in person, by the physician who is to perform the abortion, or by the referring physician, or by an agent of both, at least twenty-four hours before the abortion, providing the following information:

            (a)    That medical assistance benefits may be available for prenatal care, childbirth, and neonatal care;

            (b)    That the father of the unborn child is legally responsible to provide financial support for her child following birth, and that this legal obligation of the father exists in all instances, even in instances in which the father has offered to pay for the abortion;

            (c)    The name, address, and telephone number of a pregnancy help center in reasonable proximity of the abortion facility where the abortion will be performed; and

            (d)    That she has a right to review all of the material and information described in § 34-23A-1, §§ 34-23A-1.2 to 34-23A-1.7, inclusive, § 34-23A-10.1, and § 34-23A-10.3, as well as the printed materials described in § 34-23A-10.3, and the website described in § 34-23A-10.4. The physician or the physician's agent shall inform the pregnant woman, orally or in writing, that the materials have been provided by the State of South Dakota at no charge to the pregnant woman. If the pregnant woman indicates, at any time, that she wants to review any of the materials described, such disclosures shall be either given to her at least twenty-four hours before the abortion or mailed to her at least seventy-two hours before the abortion by certified mail, restricted delivery to addressee, which means the postal employee can only deliver the mail to the addressee;

            (3)    A written statement that sex-selective abortions are illegal in the State of South Dakota and that a pregnant mother cannot have an abortion, either solely or partly, due to the unborn child's sex, regardless of whether that unborn child is a girl or a boy or whether it is of the pregnant mother's free will or the result of the use of pressure and coercion.

    Prior to the pregnant woman signing a consent to the abortion, she shall sign a written statement that indicates that the requirements of this section have been complied with. Prior to the performance of the abortion, the physician who is to perform the abortion shall receive a copy of the written disclosure documents required by this section, and shall certify in writing that all of the information described in those subdivisions has been provided to the pregnant woman, that the physician is, to

the best of his or her ability, satisfied that the pregnant woman has read the materials which are required to be disclosed, and that the physician believes she understands the information imparted.

    Section 5. That § 34-23A-20 be amended to read:

    34-23A-20. If a part of this chapter is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this chapter is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications. If any part or provision of this chapter is determined to be invalid, or is preliminarily enjoined, all other parts not determined to be invalid or enjoined are severable from the invalid parts and remain in effect. If any part or provision of this chapter is determined to be invalid, or is preliminarily enjoined in one or more of its applications, all other parts or provisions not determined to be invalid or preliminarily enjoined are severable from the invalid or preliminarily enjoined application and remain in effect.

    Section 6. That § 34-23A-66 be repealed.

     Signed March 22, 2016
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CHAPTER 180

(SB 72)

Late term abortion prohibited.


        ENTITLED, An Act to prohibit the abortion of an unborn child who is capable of experiencing pain and to provide a penalty therefor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 34-23A be amended by adding a NEW SECTION to read:

    The Legislature finds that:

            (1)    The state has a compelling state interest in protecting the lives of unborn children from the stage at which substantial medical evidence indicates that they are capable of feeling pain;

            (2)    There is substantial medical evidence that an unborn child is capable of experiencing pain by twenty weeks after fertilization.

    Section 2. That chapter 34-23A be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Post-fertilization age," the age of an unborn child as calculated from fertilization;

            (2)    "Probable post-fertilization age of the unborn child," what, in reasonable medical judgment, will with reasonable probability be the post-fertilization age of the unborn child at the time the abortion is planned to be performed or induced;

            (3)    "Reasonable medical judgment," a medical judgment that would be made by a reasonably prudent physician, knowledgeable about the case and the treatment possibilities with respect to the medical conditions involved;

            (4)    "Woman," a female human being whether or not she has reached the age of majority.

    Section 3. That chapter 34-23A be amended by adding a NEW SECTION to read:

    It is a Class 1 misdemeanor to intentionally or recklessly perform, or attempt to perform, an abortion of an unborn child capable of feeling pain unless it is a medical emergency. No penalty may be assessed against the woman upon whom the abortion is performed, or attempted to be performed.

    Section 4. That chapter 34-23A be amended by adding a NEW SECTION to read:

    For purposes of this Act, an unborn child is capable of feeling pain when the physician performing, or attempting to perform, the abortion or another physician upon whose determination that physician relies, determines that the probable post-fertilization age of the unborn child is twenty or more weeks.

    In determining the post-fertilization age of the unborn child, the physician shall make inquiries of the pregnant woman and perform medical examinations and tests that a reasonably prudent physician would perform to accurately diagnose the post-fertilization age of an unborn child.

    Section 5. That chapter 34-23A be amended by adding a NEW SECTION to read:

    No medical emergency may form the basis for an exception to section 3 if it is based on a claim or diagnosis that the pregnant mother will engage in conduct which she intends to result in her death or other self harm.

    Section 6. That chapter 34-23A be amended by adding thereto a NEW SECTION to read as follows:

    When an abortion of an unborn child capable of feeling pain is necessary due to a medical emergency, the physician shall deliver the child in the manner which, in reasonable medical judgment, provides the best opportunity for the unborn child to survive, but only if it is consistent with preserving the pregnant mother's life and preventing an irreversible impairment of a major bodily function of the pregnant woman.

    Section 7. That § 34-23A-34 be amended to read as follows:

    34-23A-34. The Department of Health shall prepare a reporting form for physicians which shall provide for the collection of the following information:

            (1)    The month, day, and year of the induced abortion;

            (2)    The method of abortion used for each induced abortion;

            (3)    The approximate gestational age, in weeks, of the unborn child involved in the abortion;

            (4)    The age of the mother at the time of the abortion and, if the mother was younger than sixteen years of age at the time the child was conceived, the age of the father, if known;

            (5)    The specific reason for the induced abortion, including the following:

            (a)    The pregnancy was a result of rape;

            (b)    The pregnancy was a result of incest;

            (c)    The mother could not afford the child;

            (d)    The mother did not desire to have the child;

            (e)    The mother's emotional health was at risk;

            (f)    The mother would suffer substantial and irreversible impairment of a major bodily function if the pregnancy continued;

            (g)    Other, which shall be specified;

            (6)    Whether the induced abortion was paid for by:

            (a)    Private insurance;

            (b)    Public health plan;

            (c)    Other, which shall be specified;

            (7)    Whether coverage was under:

            (a)    A-fee-for-service insurance company;

            (b)    A managed care company; or

            (c)    Other, which shall be specified;

            (8)    A description of the complications, if any, for each abortion and for the aftermath of each abortion;

            (9)    The fee collected for performing or treating the abortion;

            (10)    The type of anesthetic, if any, used for each induced abortion;

            (11)    The method used to dispose of fetal tissue and remains;

            (12)    The specialty area of the physician;

            (13)    Whether the physician performing the induced abortion has been subject to license revocation or suspension or other professional sanction;

            (14)    The number of previous abortions the mother has had;

            (15)    The number of previous live births of the mother, including both living and deceased;

            (16)    The date last normal menses began for the mother;

            (17)    The name of physician performing the induced abortion;

            (18)    The name of hospital or physician office where the induced abortion was performed;

            (19)    A unique patient number that can be used to link the report to medical report for inspection, clarification, and correction purposes but that cannot, of itself, reasonably lead to the identification of any person obtaining an abortion;

            (20)    Certain demographic information including:

            (a)    State, county, and city of occurrence of abortion;

            (b)    State, county, and city of residence of mother;

            (c)    Marital status of mother;

            (d)    Education status of mother;

            (e)    Race and hispanic origin of mother;

            (21)    Certain Rhesus factor (Rh) information including:

            (a)    Whether the mother received the Rh test;

            (b)    Whether the mother tested positive for the Rh-negative factor;

            (c)    Whether the mother received a Rho(D) immune globulin injection; and

            (22)    The sex of the unborn child and the following information:

            (a)    Whether the pregnant mother used a sex-determining test;

            (b)    What type of sex-determining test the pregnant mother used; and

            (c)    The approximate gestational age of the unborn child, in weeks, when the test was taken;

            (23)    The post-fertilization age of the unborn child and the following information:

            (a)    How the post-fertilization age was determined or if a determination was not made, the basis of the determination that an exception existed;

            (b)    Whether an intra-fetal injection was used in an attempt to induce fetal demise;

            (c)    If the unborn child was deemed capable of experiencing pain, pursuant to section 4 of this Act, the basis of the determination that it is a medical emergency;

            (d)    If the unborn child was deemed capable of experiencing pain pursuant to section 4 of this Act, whether the method of the abortion used was that, in reasonable medical judgment, provided the best opportunity for the unborn child to survive and, if such a method was not used, the basis of the determination that termination of the pregnancy in that manner would pose a greater risk either of the death of the pregnant woman or of the substantial and irreversible physical impairment of a major bodily function, not including a psychological or emotional condition, of the woman than other available methods.

    Section 8. That chapter 34-23A be amended by adding a NEW SECTION to read:

    Nothing in this Act repeals, by implication or otherwise, any provision not explicitly repealed.

    Section 9. That § 34-23A-4 be amended to read:

    34-23A-4. An abortion may be performed following the twelfth week of pregnancy and through the twenty-fourth through the twenty-second week of pregnancy by a physician only in a hospital licensed under the provisions of chapter 34-12 or in a hospital operated by the United States, this state, or any department, agency, or political subdivision of either or in the case of hospital facilities not being available, in the licensed physician's medical clinic or office of practice subject to the requirements of § 34-23A-6.



    Section 10. That § 34-23A-5 be amended to read:

    34-23A-5. An abortion may be performed following the twenty-fourth twenty-second week of pregnancy by a physician only in a hospital authorized under § 34-23A-4 and only if there is appropriate and reasonable medical judgment that performance of an abortion is necessary to preserve the life or health of the mother in the case of a medical emergency.

     Signed March 10, 2016
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CHAPTER 181

(HB 1030)

Fire safety codes updated.


        ENTITLED, An Act to revise certain codes and standards regarding fire prevention.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 13-25-15 be amended to read:

    13-25-15. For new construction after July 1, 2010 2016, any rules adopted by the department Department of Public Safety shall use as a basis for their development the International Building Code, the International Fire Code, and the International Mechanical Code, 2009 2015 editions, and referenced standards which may be modified, amended, or deleted if the secretary finds that strict application of the code is impractical and, furthermore, that the modification is in conformity with the intent and purpose of the code or standards.

    Section 2. That § 34-29B-2 be amended to read:

    34-29B-2. The State Fire Marshal shall establish a program of fire prevention, fire investigation, fire training, and public fire education. The secretary of public safety may promulgate rules, pursuant to chapter 1-26, to protect the health or safety of persons from fire and like emergencies, based on codes and standards set forth by the International Building Code, the International Fire Code, and the International Mechanical Code, 2009 2015 editions, and referenced standards except such portions as are deleted, modified, or amended, unless the secretary finds that the strict application of the code is impractical and that the modification is in conformity with the intent and purpose of the code or standards. The rules may be adopted in the following areas:

            (1)    The prevention of fires including:

            (a)    Fire safety regulations governing buildings used by the general public with the exception of health care facilities inspected by the Department of Health;

            (b)    Fire safety regulations governing lodging and eating establishments;

            (c)    Fire safety regulations governing multifamily residences housing six or more families. However, if a municipality has adopted regulations regarding multifamily residences that are in conformity with this chapter, they those regulations are the applicable regulations;

            (d)    Fire safety regulations governing publicly owned buildings;

            (e)    Fire safety regulations governing detention or correctional facilities, regardless of ownership; and

            (f)    Fire safety regulations governing day care facilities;

            (2)    The manufacture, transportation, storage, sale, and use of combustible or flammable liquids or liquefied petroleum gases;

            (3)    The means and adequacy of exit in case of fire;

            (4)    The investigation of the cause, origin, and circumstances of fires and explosions;

            (5)    The maintenance of fire cause and loss records;

            (6)    The maintenance of a record of fire prevention inspections;

            (7)    A program of fire service training and public fire education;

            (8)    The review and approval of plans and specifications to determine compliance with applicable fire codes and statutes as it pertains to facilities dealing with combustible or flammable liquids and or liquid petroleum gases; and

            (9)    The abatement of unsafe buildings or structures regulated by this chapter which constitute a hazard to safety, health, or public welfare by reason of inadequate maintenance, dilapidation, obsolescence, fire hazard, disaster, or abandonment.

    Section 3. That § 34-38-26 be amended to read:

    34-38-26. Except as otherwise provided in this chapter, aboveground storage tanks shall comply with the applicable provisions of chapter 34 57 of the International Fire Code, 2009 2015 edition.

    Section 4. That § 34-38-29 be amended to read:

    34-38-29. Spill control shall be provided in accordance with chapter 34 57 of the International Fire Code, 2009 2015 edition.

    Section 5. That § 34-38-33 be amended to read:

    34-38-33. Any portion of a tank piping system that is in contact with the soil shall be protected from corrosion in accordance with chapter 34 57 of the International Fire Code, 2009 2015 edition.

    Section 6. That § 34-38-34 be amended to read:

    34-38-34. Delivery operations shall comply with applicable requirements of chapter 34 57 of the International Fire Code, 2009 2015 edition. Dispensing operations shall comply with the provisions of chapter 34 57 of the International Fire Code, 2009 2015 edition.

    The delivery vehicle shall be separated from any aboveground tank by at least twenty-five feet.

    Means shall be provided for determining the liquid level in each tank and this means shall be accessible to the delivery operator. Provisions shall be made either to automatically stop the delivery of fuel to the tank if the liquid level in the tank reaches ninety-five percent of capacity or to sound an audible alarm if the liquid level in the tank reaches ninety percent capacity.

    A check valve, gate valve with quick-connect coupling, or a dry-break valve shall be installed in the piping at the point where connection and disconnection is made for delivery from a vehicle

to any aboveground tank. This device shall be protected against tampering and physical damage.

    If the delivery hose is connected directly to the tank, the fill line at the tank shall be equipped with a tight-fill device for connecting the hose to the tank.

    Section 7. That § 34-38-35 be amended to read:

    34-38-35. For the purpose of implementing this chapter, the department may promulgate rules, pursuant to chapter 1-26, to protect the health and safety of persons from fire, explosion and like emergencies based on codes and standards set forth by the International Building Code, the International Fire Code, and the International Mechanical Code, 2009 2015 editions, and referenced standards except such portions as are deleted, modified, or amended.

    Section 8. That § 34-38-38 be amended to read:

    34-38-38. The provisions of this chapter apply to facilities constructed after July 1, 2010 2016. Existing installations shall be permitted only if, in the opinion of local and state authorities, the existing installation does not constitute a distinct hazard to life or property.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\182.wpd
CHAPTER 182

(HB 1020)

Forest fire prevention and control, updated.


        ENTITLED, An Act to revise certain provisions concerning fire prevention and compacts related to the prevention and control of forest fires.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-35-12.1 be amended to read:

    34-35-12.1. Any person who negligently causes a fire to be started or who does not take reasonable precautions to prevent a fire from spreading and permits a fire to spread beyond the person's control is liable for all fire suppression and extinguishment costs that were caused by the fire and that are collectable by the secretary of agriculture or his designee under §§ 41-20-4 and 41-20-8 §§ 41-20A-6 and 41-20A-10. For purposes of this section, the term, person, includes public utilities, railroads, and private utilities.

    Section 2. That § 41-20A-10 be amended to read:

    41-20A-10. The state wildland fire coordinator, with the sanction of the Department of Agriculture, may, upon request, assist and cooperate with any agency of the United States government; any ministry of a Canadian province; all state, county, and municipal agencies; any fire suppression organization; any person qualified by the state wildland fire coordinator; any person needed for an incident management team for the purposes of training and fire prevention or suppression; and with any corporation, association, partnership, or individual owning or controlling any forestland, woodland, shelterbelt, or rangeland in the protection of such forestland, woodland, shelterbelt, or rangeland, including:

            (1)    Creation and administration of fire protection districts;

            (2)    Disposal of slash, debris from logging operations, and other fire and insect hazards; and

            (3)    Assistance to the state wildland fire coordinator in the prevention and suppression of fires.

    After providing assistance in the suppression of fires pursuant to subdivision (3) of this section, the state wildland fire coordinator may collect fire suppression and extinguishment costs pursuant to this chapter if the costs were initially incurred by the coordinator or if the secretary of agriculture has repaid any of the governmental agencies or persons described by this section for goods or services used in fire suppression efforts directed by the coordinator.

    Section 3. That § 34-35-20 be amended to read:

    34-35-20. The Governor of South Dakota may execute a compact on behalf of the state with any one or more states who may by their legislative bodies, authorize a compact, in form substantially as follows:

ARTICLE I

    The purpose of this compact is to promote effective prevention and control of forest fires in the great plains region of the United States by the maintenance of adequate forest fire fighting services by the member states, and by providing for reciprocal aid in fighting forest fires among the compacting states of the region, including South Dakota, North Dakota, Wyoming, Colorado and any adjoining state of a current member state. Subject to the consent of the Congress of the United States, any province of Canada which is contiguous to a compact member state may become a party to this compact by taking such action as its laws and the laws of Canada prescribe for ratification. The term, state, in this compact includes within its meaning the term, province, and the procedures prescribed shall be applied to a province, in accordance with the forms and practices of the Canadian government.

ARTICLE II

    This compact is operative immediately as to those states ratifying it if any two or more of the member states have ratified it.

ARTICLE III

    In each state, the state forester or officer holding the equivalent position who is responsible for forest fire control may act as compact administrator for that state and may consult with like officials of the other member states and may implement cooperation between the states in forest fire prevention and control. The compact administrators of the member states may organize to coordinate the services of the member states and provide administrative integration in carrying out the purposes of this compact. Each member state may formulate and put in effect a forest fire plan for that state.

ARTICLE IV

    If the state forest fire control agency of a member state requests aid from the state forest fire control agency of any other member state in combating, controlling, or preventing forest fires, the state forest fire control agency of that state may render all possible aid to the requesting agency, consonant with the maintenance of protection at home.

ARTICLE V

    If the forces of any member state are rendering outside aid pursuant to the request of another member state under this compact, the employees of the state shall, under the direction of the officers of the state to which they are rendering aid, have the same powers (except the power of arrest), duties, rights, privileges, and immunities as comparable employees of the state to which they are

rendering aid.

    No member state or its officers or employees rendering outside aid pursuant to this compact is liable on account of any act or omission on the part of such forces while so engaged, or on account of the maintenance or use of any equipment or supplies in connection with rendering the outside aid.

    All liability, except as otherwise provided in this compact, that may arise either under the laws of the requesting state or under the laws of the aiding state or under the laws of a third state on account of or in connection with a request for aid, shall be assumed and borne by the requesting state.

    Any member state rendering outside aid pursuant to this compact shall be reimbursed by the member state receiving the aid for any loss or damage to, or expense incurred in the operation of any equipment answering a request for aid, and for the cost of all materials, transportation, wages, salaries, and maintenance of employees and equipment incurred in connection with such request. However, nothing in this compact prevents any assisting member state from assuming such loss, damage, expense, or other cost or from loaning such equipment or from donating such services to the receiving member state without charge or cost.

    Each member state shall assure that workers compensation benefits in conformity with the minimum legal requirements of the state are available to all employees and contract firefighters sent to a requesting state pursuant to this compact.

    For the purposes of this compact the term, employee, includes any volunteer or auxiliary legally included within the forest fire fighting forces of the aiding state under the laws of the aiding state.

    The compact administrators may formulate procedures for claims and reimbursement under the provisions of this article, in accordance with the laws of the member states.

ARTICLE VI

    Ratification of this compact does not affect any existing statute so as to authorize or permit curtailment or diminution of the forest fighting forces, equipment, services, or facilities of any member state.

    Nothing in the compact authorizes or permits any member state to curtail or diminish its forest fire fighting forces, equipment, services, or facilities. Each member state shall maintain adequate forest fire fighting forces and equipment to meet demands for forest fire protection within its borders in the same manner and to the same extent as if this compact were not operative.

    Nothing in this compact limits or restricts the powers of any state ratifying the compact to provide for the prevention, control, and extinguishment of forest fires, or to prohibit the enactment or enforcement of state laws, rules, or regulations intended to aid in the prevention, control, and extinguishment in the state.

    Nothing in this compact affects any existing or future cooperative relationship or arrangement between the United States Forest Service and a member state or states.

ARTICLE VII

    Representatives of the United States Forest Service may attend meetings of the compact administrators.

ARTICLE VIII

    The provisions of Articles IV and V of this compact that relate to reciprocal aid in combating,

controlling, or preventing forest fires are operative as between any state party to this compact and any other state which is party to this compact and any other state that is party to a regional forest fire protection compact in another region if the Legislature of the other state has given its assent to the mutual aid provisions of this compact.

ARTICLE IX

    This compact shall continue in force and remain binding on each state ratifying it until the Legislature or the Governor of the state takes action to withdraw from the compact. Such action is not effective until six months after notice of the withdrawal has been sent by the chief executive of the state desiring to withdraw to the chief executives of all states then parties to the compact.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\182.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\183.wpd
CHAPTER 183

(HB 1031)

Weights and measures regulatory authority updated.


        ENTITLED, An Act to revise certain provisions pertaining to weights and measures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 34-39-6 be amended to read:

    34-39-6. All liquid gas meters shall be of a positive displacement type equipped with vapor separator or provided with such other equipment which will positively eliminate all air and vapor from passing through the meter with the liquid gas, and differential pressure regulator and such meters. A liquid gas meter, except a meter dispensing at a rate of twenty gallons per minute or less, shall be corrected, prior to use, to sixty degrees Fahrenheit liquid gas temperature and all deliveries of liquid gas through such meters the meter shall, at the time and place of such delivery, be temperature corrected from sixty degrees Fahrenheit to the temperature of the liquid gas at the time and place of delivery and the customer billed accordingly. It is a Class 1 misdemeanor to make wholesale or retail sales to customers from any bulk delivery vehicle unless such the bulk delivery vehicle is equipped with and dispenses said the liquid petroleum gas through a liquid gas meter as herein provided. Liquid meters shall not. No liquid gas meter may be equipped with a bypass around said the liquid gas meter; provided, however, that. However, the prohibition of a bypass is not intended to prohibit the use of an equalization line.

    Section 2. That § 34-39-2 be amended to read:

    34-39-2. It is a Class 2 misdemeanor to sell or offer for sale, either at wholesale or retail, any liquefied petroleum gas, either in liquid or vapor form, except by weights and measures that are approved by the Division of Commercial Inspection and Licensing department.

    Section 3. That § 34-39-3 be amended to read:

    34-39-3. The Department of Public Safety department may test all weighing and measuring devices used in the wholesale or retail sale of liquefied petroleum gas, either in liquid or vapor form, and shall condemn or reject for repair, any device which is found either to be inaccurate or does not clearly state the quantity of liquefied petroleum gas, either in liquid or vapor form, in pounds, gallons, cubic feet, or other unit approved by the department.



    The department shall charge and collect a sixty-eight dollar fee for each test. From July 1, 2007, through June 30, 2008, the fee is thirty-six dollars. From July 1, 2008, through June 30, 2009, the fee is fifty-two dollars. On July 1, 2009, and thereafter, the fee is sixty-eight dollars. Revenue from the fee shall be deposited into the state general fund.

    Any inspector employed by the department may enter and examine any liquefied petroleum gas plant for safety standard purposes no more than every two years, except for any reinspection resulting from a deficiency. The department shall charge and collect a ninety-four dollar fee for each inspection. From July 1, 2007, through June 30, 2008, the fee is fifty-eight dollars. From July 1, 2008, through June 30, 2009, the fee is seventy-six dollars. On July 1, 2009, and thereafter, the fee is ninety-four dollars.

    For the purposes of this section, a liquefied petroleum gas plant is a retail distribution facility with a capacity of at least eight thousand gallons.

    Revenue from the fees imposed by this section shall be deposited into the general fund. It is the intent of the Legislature that one-half of the inspection program funding may be derived from the general fund and the other half from the fees collected pursuant to this section and §§ 37-21-9.1, 37-21A-3, 37-21A-7, and 37-22-10, through the General Appropriations Act.

    Section 4. That § 34-39-3.1 be amended to read:

    34-39-3.1. The Division of Commercial Inspection and Licensing of the Department of Public Safety department shall perform the functions previously performed by the state inspector and sealer of weights and measures pursuant to required by this chapter.

    Section 5. That § 34-39-4 be amended to read:

    34-39-4. The Division of Commercial Inspection and Licensing department shall conspicuously mark all condemned or rejected for repair devices. It is a Class 2 misdemeanor to remove or deface such a the mark except upon authorization of the division department.

    Section 6. That § 34-39-5 be amended to read:

    34-39-5. It is a Class 1 misdemeanor to use a weighing or measuring device for determining quantities of liquefied petroleum gas, either in liquid or vapor form, which has been condemned by the Division of Commercial Inspection and Licensing department.

    Section 7. That § 34-39-7 be amended to read:

    34-39-7. The Division of Commercial Inspection and Licensing is hereby authorized to secretary may promulgate and adopt, in compliance with rules, pursuant to chapter 1-26, such rules and regulations and to establish tolerances within a maximum of two percent plus or minus, which may be necessary for the enforcement of §§ 34-39-1 to 34-39-6, inclusive.

    Section 8. That § 37-2-5 be amended to read:

    37-2-5. Terms used throughout §§ 37-2-5 to 37-2-24, inclusive, in this chapter mean:

            (1)    "Alcohol," a colorless volatile flammable liquid containing no more than 1.25 percent of water used for the purpose of blending or mixing with gasoline for use in motor vehicles and commonly known as alcohol, ethanol, or methanol;

            (2)    "ASTM," the American Society for Testing and Materials;

            (3)    "Aviation gasoline," a volatile hydrocarbon fuel free from suspended water and sediment

matter and that is suitable for use as a fuel in an aviation spark ignition internal combustion engine designed for use in an aircraft;

            (3A)    "Biodiesel," a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of the American Society of Testing and Materials D 6751 as of January 1, 2005 2015, and is registered with the United States Environmental Protection Agency as a fuel and fuel additive under section 211(b) of the Clean Air Act in effect on January 1, 2006;

            (3B)    "Biodiesel blend," a special blended fuel comprised of at least two percent by volume of biodiesel blended with petroleum-based diesel fuel, designated BXX. In the abbreviation BXX, the XX represents the volume percentage of biodiesel fuel in the blend;

            (4)    "Department," the Department of Public Safety;

            (5)    "Diesel fuel," a refined middle distillate hydrocarbon fuel free from suspended water and sediment matter that is suitable for use as a fuel in a compression-ignition (diesel) internal combustion engine;

            (5A)    "Ether," methyl tertiary butyl ether;

            (6)    "Flash test" and "flash point," the flash point as determined by the method of the American Society for Testing Materials, using the instrument known as the Tagliabue closed cup tester;

            (7)    "Gasoline," a volatile hydrocarbon fuel free from suspended water and sediment matter that is practicable and suitable used as fuel in a spark ignition internal combustion engine;

            (8)    "Inspector," the secretary of the Department of Public Safety or any deputy or assistant appointed by the secretary for the purpose of enforcing the provisions of this chapter;

            (9)    "Kerosene," a hydrocarbon fuel intended for use in heating and illumination and having an American Petroleum Institute gravity of not less than forty degrees. Kerosene shall also include coal oil and burner oil;

            (9A)    "NIST," the National Institute of Standards and Technology;

            (10)    "Petroleum products," gasoline, alcohol blended fuels, kerosene, diesel fuel, aviation gasoline, burner oil, naphtha and lubricating oils;

            (11)    "Secretary," the secretary of the Department of Public Safety.

    Section 9. That § 37-2-6 be amended to read:

    37-2-6. The secretary of the Department of Public Safety may, pursuant to chapter 1-26, and in general conformity with ASTM and NIST standards in effect on January 1, 2005 2015, promulgate rules:

            (1)    Establishing standards for the maximum volume percentages of ethanol, methanol, ether, and cosolvents in alcohol blended fuels;

            (2)    Establishing a program for and prescribing the methods to be used for the inspection and testing of alcohol blended fuels, petroleum products, biodiesel, and biodiesel blends;

            (3)    Requiring labeling of devices dispensing alcohol blended fuels, biodiesel, and biodiesel blends;

            (4)    Establishing standards setting the specifications and tolerance requirements for petroleum products, biodiesel, and biodiesel blends; and

            (5)    Regulating the filtering system to be used on devices dispensing alcohol blended fuels.

    Section 10. That § 37-2-7 be amended to read:

    37-2-7. Specifications and methods for the examination and test of petroleum products shall be determined by the Division of Legal and Regulatory Services department and shall be based upon standards from the American Society for Testing and Materials ASTM and the National Institute for Standards and Technology NIST as of January 1, 2005 2015. If promulgated as rules of the division department in accordance with the provisions of chapter 1-26, the specifications shall be the specifications for such petroleum products sold in this state and official tests of the petroleum products shall be based upon test specifications so determined, adopted, and promulgated.

    Section 11. That § 37-2-8 be amended to read:

    37-2-8. The director of the State Health Laboratory, or other Any qualified laboratory, shall may make an analysis as may be requested by the secretary of the Department of Public Safety. Distillation tests shall be made in accordance with pursuant to the methods for the tests adopted by the American Society for Testing and Materials ASTM.

    Section 12. That § 37-2-9 be amended to read:

    37-2-9. The inspector shall is not be required to make a thorough analysis of all petroleum products to ascertain every each form of impurity, but may do so whenever, in his opinion, it may be necessary; and, if upon such. However, if the inspector performs an analysis it is demonstrated that demonstrates the requirements of this chapter are not met or that there exists therein some an impurity or imperfection not specified in this chapter which renders such a petroleum products product unsuitable, it shall be his duty to reject the same the inspector may reject the petroleum product.

    Section 13. That § 37-2-11 be amended to read:

    37-2-11. No person shall may display any sign, label, or other designating mark which describes any lubricating oil or gasoline for internal combustion engines not actually sold or offered for sale or delivered at the location at which the sign, label, or other designating mark is displayed, or. No person may display any label upon any container which label names or describes any lubricating oil or gasoline for internal combustion engines not actually contained therein in the container, but offered for sale or sold as such lubricating oil or gasoline. This section does not apply to any person utilizing a sign in a decorative manner. No place of business may use a decorative sign in a manner that misleads a consumer as to the products sold at that location.

    Section 14. That § 37-2-24 be amended to read:

    37-2-24. The expense of all inspections, collections, and refunds in connection with the safety and taxation of all petroleum products shall be paid out of from the collection of taxes or licenses therefrom by the state treasurer, upon bills, vouchers, and payrolls approved by the Division of Commercial Inspection and Licensing department and the commissioner of finance and management.

    The allocation of funds from the net collections of taxes and licenses on all petroleum products shall be made by the state treasurer in the manner and in the amounts prescribed by pursuant to law.

    Section 15. That § 37-2-44 be amended to read:

    37-2-44. In general conformity with ASTM D4814 and the adoption of NIST Handbook 130,

2005 2015, in rules promulgated pursuant to this chapter, the minimum (R+M)/2 octane rating grades of petroleum products, as defined by subdivision 37-2-5(10) in the counties of Butte, Custer, Fall River, Harding, Lawrence, Meade, Oglala Lakota, Pennington, and Perkins shall be no less than the following:

            (1)    Regular, unleaded, regular unleaded 85;

            (2)    Midgrade, plus, or super unleaded 87, 88, 89, or 90; and

            (3)    Premium, supreme, high test unleaded 91.

    Section 16. That § 37-20-2 be amended to read:

    37-20-2. The secretary of the Department of Public Safety shall take charge of the standards adopted by this chapter as the reference standards of the state, keep the and take necessary precautions for the safekeeping of the standards. The standards shall be kept in a fireproof building belonging to controlled by the state from which they the standards may not be removed except for repairs, and take all other necessary precautions for their safekeeping or calibrations. The secretary shall maintain the state reference standards in good order. The secretary shall keep a complete record of the standards, balances, and other apparatus belonging to the state. The state reference standards shall may only be used only for testing any duplicate standards that may be required in the enforcement of chapters 37-20 to 37-22, inclusive.

    Section 17. That § 37-20-3 be amended to read:

    37-20-3. In addition to the state reference standards of weights and measures provided for by law, the state shall supply at least one complete set of duplicate standards, which shall be kept at all times in the Division of Commercial Inspection and Licensing and department. The duplicate standard shall be known as the working standards; and such. The other weights, measures, and apparatus which are necessary to carry out the provisions of chapters 37-20 to 37-22, inclusive, to shall be known as field standards.

    Section 18. That § 37-20-5 be amended to read:

    37-20-5. The working standards shall be used in making all comparisons of weights and measures and weighing and measuring devices submitted for testing in the Division of Commercial Inspection and Licensing department.

    Section 19. That § 37-20-34 be amended to read:

    37-20-34. The secretary of the Department of Public Safety may promulgate rules, pursuant to chapter 1-26, for the enforcement of the provisions of chapter 37-20 in the following areas:

            (1)    Tolerances, specifications, and requirements for testing standards to be used in South Dakota; and

            (2)    Required compliance with standards issued by the National Institute of Standards and Technology in effect January 1, 2005 2015.

    Section 20. That § 37-21-1 be amended to read:

    37-21-1. The Division of Commercial Inspection and Licensing department shall have and keep a general supervision of the weights, measures, and weighing or measuring devices offered for sale, sold, or in use in the state.

    Section 21. That § 37-21-1.1 be repealed.



    Section 22. That § 37-21-2 be amended to read:

    37-21-2. The secretary of the Department of Public Safety hereby made is the ex officio inspector and sealer of weights and measures and is hereby charged with the duty of carrying into force and effect shall enforce the provisions of chapters 37-20 and 37-21.

    The deputies, assistants, and inspectors, A deputy, assistant, or inspector appointed for the purpose or entrusted with such duties by the secretary, shall have has the same powers and duties as are provided for such director to the secretary when acting in performance of duties assigned to them by him by the secretary under the provisions of this chapter.

    Section 23. That § 37-21-6 be amended to read:

    37-21-6. Regulations pursuant to § 37-21-5 may include specifications and tolerances for any weight, measure, or weighing or measuring device of the character of those specified in § 37-21-9. The rules shall prohibit the use of any weight, measure, or weighing or measuring device which is not accurate, which is of such construction that it is not reasonably permanent in its adjustment, which will not repeat its indications correctly, or which facilitates the perpetration of fraud. Such The specifications and tolerances shall be in conformity with the code of specifications, tolerances, and regulations for commercial weighing and measuring devices issued and recommended by the National Institute of Standards and Technology of the United States Department of Commerce and in effect on January 1, 2005 2015.

    Section 24. That § 37-21-9 be amended to read:

    37-21-9. When not otherwise provided for by law, the director of commercial inspection and licensing secretary shall have the power, and it shall be his duty to inspect, test, try, and ascertain if they are correct, that all weights, measures, and weighing and measuring devices kept, offered, or exposed for sale, sold or used or employed by any proprietor, agent, lessee, or employee person in proving or ascertaining the size, quantity, extent, area, or measurement of quantities, things, produce, or articles of distribution or consumption purchased or offered or submitted by such person or persons for sale, hire, or award are correct.

    Section 25. That § 37-21-9.1 be amended to read:

    37-21-9.1. The Division of Commercial Inspection and Licensing department shall charge and collect a fee of twenty-eight dollars for each inspection and testing of any weight, measure, and weighing and measuring device up to one thousand pounds. From July 1, 2007, through June 30, 2008, the fee is sixteen dollars. From July 1, 2008, through June 30, 2009, the fee is twenty-two dollars. On July 1, 2009, and thereafter, the fee is twenty-eight dollars. The fee shall be paid upon demand of the division department by the person, firm, or corporation owning or operating the weight, measure, or weighing or measuring device inspected or tested. A fee of fourteen dollars shall be charged and collected for each inspection and testing of gasoline and diesel stationary fuel pump meters. From July 1, 2007, through June 30, 2008, the fee is eight dollars. From July 1, 2008, through June 30, 2009, the fee is eleven dollars. On July 1, 2009, and thereafter, the fee is fourteen dollars. A fee of forty-six dollars shall be charged and collected for each inspection and testing of gasoline and diesel high speed stationary fuel pump meters and for refined fuel truck meters. From July 1, 2007, through June 30, 2008, the fee is twenty-five dollars. From July 1, 2008, through June 30, 2009, the fee is thirty-six dollars. On July 1, 2009, and thereafter, the fee is forty-six dollars. If a special or emergency inspection is requested, a charge, not to exceed the actual cost of such the inspection, including costs for personnel, equipment, and mileage, shall be made and assessed against the requesting individual person or device owner.

    It is the intent of the Legislature that one-half of the inspection program funding may be derived from the general fund and the other half from the fees collected pursuant to this section and §§ 34-39-3, 37-21A-3, 37-21A-7, and 37-22-10, through the General Appropriations Act.

    Section 26. That § 37-21-10 be amended to read:

    37-21-10. Whenever If a complaint shall be is made to the director of commercial inspection and licensing secretary that any false or incorrect scales, weights, or measures are being made use of by any person, firm, or corporation in the purchase or sale of merchandise or other commodities or in weighing any article or commodity, the piece price for which is determined by weight or measure, it shall be his duty to cause the same to be inspected the secretary shall investigate the complaint as soon as the duties of his office will permit, and he possible. The secretary shall make such other inspections of the weights and measures as in his the secretary's judgment are necessary or proper to be made, except where inspection is provided for by chapter 37-22 or chapter 37-22A.

    Section 27. That § 37-21-12 be amended to read:

    37-21-12. Any person who impersonates in any way the secretary of the Department of Public Safety, his deputy, or inspectors, or an employee of the department in the performance of his or their the person's official duties, is guilty of a Class 1 misdemeanor.

    Section 28. That § 37-21-13 be amended to read:

    37-21-13. If the director of commercial inspection and licensing secretary compares weights, measures, or weighing or measuring devices and finds that they correspond with the state standards, the director secretary shall seal or mark the weights, measures, or weighing or measuring devices with appropriate seals or marks.

    Section 29. That § 37-21-15 be amended to read:

    37-21-15. The director of commercial inspection and licensing shall have the power to, and shall, from time to time, secretary may weigh or measure and inspect packages or amounts of commodities of whatsoever whatever kind kept for the purpose of sale, offered or exposed for sale, sold, or in the process of delivery, in order to determine whether the same packages or commodities contain the amounts represented, and whether they be the packages or commodities are being offered for sale or sold in a manner in accordance with pursuant to law.

    Section 30. That § 37-21-16 be amended to read:

    37-21-16. The director of commercial inspection and licensing secretary may for the purposes mentioned in § 37-21-15, and in the general performance of official duties, enter and go into or upon, without formal warrant, any stand, place, building, or premises, or stop any vendor or any dealer for the purpose of making proper tests.

    Section 31. That § 37-21-18 be amended to read:

    37-21-18. Any person who:

            (1)    Offers or exposes for sale, sells, uses in buying or selling of any commodity or thing, or for hire or award, or retains in possession a false weight or measure or measuring or weighing device, or any weight or measure or weighing or measuring device that has not been sealed by the Division of Commercial Inspection and Licensing department within two years;

            (2)    Disposes of any condemned weight, measure, or weighing or measuring device contrary to law;

            (3)    Removes any tag placed thereon by the Division of Commercial Inspection and Licensing department;

            (4)    Sells, offers, or exposes for sale less than the quantity the person represents;

            (5)    Takes or attempts to take more than the quantity the person represents, when as the buyer, the person furnished the weight, measure, or weighing or measuring device by means of which the amount of the commodity is determined;

            (6)    Keeps for the purpose of sale, offers or exposes for sale, or sells any commodity in a manner contrary to law;

            (7)    Violates any provision of chapters 37-20 to 37-22, inclusive, for which a specific penalty has not been provided; or

            (8)    Sells, offers to sell, uses, or has in possession for the purpose of selling or using any device or instrument to be used, or calculated to falsify any weight or measure;

is guilty of a Class 2 misdemeanor.

    Section 32. That § 37-21-21 be amended to read:

    37-21-21. The director of commercial inspection and licensing secretary and any deputy, assistant, or inspector may request the assistance of local law enforcement in the arrest of any violator of the statutes law in relation to weights and measures, enter a complaint before any court of competent jurisdiction, and seize and use as evidence, without formal warrant, any false or unsealed weight, measure, or weighing or measuring device or package or amount of commodities found to be used, retained, or offered or exposed for sale or sold in violation of law.

    Section 33. That § 37-21A-1 be amended to read:

    37-21A-1. Terms as used in this chapter mean:

            (1)    "Division," the secretary of the "Department," the Department of Public Safety;

            (2)    "Placed in service report," a report submitted to the Office of Weights and Measures by a registered service agent or agency, certifying that the subject device meets the applicable state requirements and is legal for trade;

            (3)    "Registered service agency," any agency, firm, company, or corporation which, for hire, award, commission, or any other payment of any kind, installs, services, repairs, or reconditions a weighing or measuring device, and which voluntarily registers itself as such with the secretary. Under agency registration, identification of individual servicemen shall may not be required;

            (4)    "Registered service agent," any individual who for hire, award, commission, or any other payment of any kind, installs, services, repairs, or reconditions a weighing or measuring device, and who voluntarily registers as such with the secretary;

            (5)    "Secretary," the secretary of the Department of Public Safety.

    Section 34. That § 37-21A-2 be amended to read:

    37-21A-2. An individual or agency Any person may apply for voluntary registration to service weighing or measuring devices on an application form supplied by the director. Said department. The applicant shall submit a form, duly signed and witnessed, shall include certification by the applicant that the individual or agency certifying that the applicant is fully qualified to install, service, repair, or recondition whatever the weighing and measuring devices for the service of which competence is being registered; has in possession, or available for use, all. The applicant shall certify that the

applicant has the necessary testing equipment and standards; and has full and knowledge of all appropriate weights and measures laws, orders, rules, and regulations. An applicant also shall submit appropriate evidence or references as to demonstrating the qualifications of the applicant.

    Section 35. That § 37-21A-3 be amended to read:

    37-21A-3. The director secretary shall charge an annual registration fee of sixty-nine dollars for each service agencies agency and ten dollars for each registered servicemen service agent to cover administrative costs. From July 1, 2007, through June 30, 2008, the fee for each agency is forty dollars and the fee for each serviceman is seven dollars. From July 1, 2008, through June 30, 2009, the fee for each agency is fifty-five dollars and the fee for each serviceman is eight dollars. On July 1, 2009, and thereafter, the fee for each agency is sixty-nine dollars and the fee for each serviceman is ten dollars. The fee shall be paid when the registration or renewal application is made.

    It is the intent of the Legislature that one-half of the inspection program funding may be derived from the general fund and the other half from the fees collected pursuant to this section and §§ 34-39-3, 37-21-9.1, 37-21A-7, and 37-22-10, through the General Appropriations Act.

    Section 36. That § 37-21A-4 be amended to read:

    37-21A-4. Upon receipt and acceptance of a properly executed application form, the director secretary shall issue to the applicant a "certificate of registration," including an assigned registration number, which shall remain. The certificate of registration remains effective until either returned by the applicant or withdrawn by the director secretary.

    Section 37. That § 37-21A-5 be amended to read:

    37-21A-5. A bearer of a certificate of registration may:

            (1)    Remove an official rejection or condemnation tag or mark placed on a weighing or measuring device by the authority of the Division of Commercial Inspection and Licensing department;

            (2)    Place in service, until such time as an official examination can be made, a weighing or measuring device that has been officially rejected or condemned; and

            (3)    Place in service, until such time as an official examination can be made, a new or used weighing or measuring device.

    Section 38. That § 37-21A-7 be amended to read:

    37-21A-7. A registered serviceman service agent and a registered service agency shall submit, annually to the director secretary, for examination and certification, any standards and testing equipment that are used, or are to be used, in the performance of the service and testing functions with respect to weighing and measuring devices for which competence is registered. No registered service person agent or agency may use in servicing any commercial weighing or measuring device any standards or testing equipment that have not been certified by the director secretary. The Department of Public Safety department shall charge a ninety-six dollar per hour fee for such the examination and certification. From July 1, 2007, through June 30, 2008, the fee is sixty-two dollars per hour. From July 1, 2008, through June 30, 2009, the fee is seventy-nine dollars per hour. On July 1, 2009, and thereafter, the fee is ninety-six dollars per hour.

    It is the intent of the Legislature that one-half of the inspection program funding may be derived from the general fund and the other half from the fees collected pursuant to this section and §§ 34-39-3, 37-21-9.1, 37-21A-3, and 37-22-10, through the General Appropriations Act.

    Section 39. That § 37-21A-8 be amended to read:

    37-21A-8. The director secretary may, for good cause, after careful investigation and consideration, deny, suspend, or revoke a certificate of registration. Good cause may include any violation of a weights and measures statute, failure to submit annual calibration documentation for all weighing and measuring devices used in servicing equipment, or calculated misrepresentations with regard to a service agent's competence, equipment, or reports.

    Section 40. That § 37-21A-10 be amended to read:

    37-21A-10. The director secretary may enter into an informal reciprocal agreement with any other state that has voluntary registration policies similar to the policies of South Dakota. Under such the agreement, the a registered servicemen service agent and the or a registered service agencies of any agency of a state party to the reciprocal agreement are is granted full reciprocal authority, including reciprocal recognition of certification of standards and testing equipment, in any state party to the agreement if the registered service agency voluntarily registers in South Dakota and pays the corresponding fee.

    Section 41. That § 37-22-1 be amended to read:

    37-22-1. All track scales and all other scales in this state used by common carriers or by shippers for the purpose of weighing cars or freight offered for shipment in car lots and all scales and weighing devices in public warehouses and grain elevators and all stock scales at stockyards and all private, farm, and town and city municipal scales used in weighing hay, grain, wood, coal, and like subjects of commerce shall be are under the supervision and control of the Division of Commercial Inspection and Licensing department and be are subject to inspection by it the department. Farm scales shall may only be inspected only at the request of the owner.

    Section 42. That § 37-22-1.1 be repealed.

    Section 43. That § 37-22-3 be amended to read:

    37-22-3. The Division of Commercial Inspection and Licensing secretary shall promulgate rules, pursuant to chapter 1-26, for:

            (1)    The installation, testing, and maintenance of all heavy scales, including specifications in conformance with standards published by the National Institute for Standards and Technology in effect January 1, 2005 2015;

            (2)    The frequency of inspection of such heavy scales; and

            (3)    The schedule and procedure for the correction of any deficiencies.

    Section 44. That § 37-22-4 be amended to read:

    37-22-4. The jurisdiction of the Division of Commercial Inspection and Licensing department has exclusive jurisdiction over the scales designated in §§ 37-22-1 and 37-22-3 shall be exclusive and. The inspection thereof shall of the scales may only be made only by and under the direction of the division department.

    Section 45. That § 37-22-5 be amended to read:

    37-22-5. The Division of Commercial Inspection and Licensing department may appoint suitable and competent inspectors to aid the division department in making inspections of scales under its jurisdiction.


    Section 46. That § 37-22-7 be amended to read:

    37-22-7. The Division of Commercial Inspection and Licensing department may acquire such standard weights and measures and such additional facilities and equipment including motor vehicles or other means of conveyance it deems deemed necessary and suitable in carrying on the work of inspecting, testing, and correcting scales and performing generally the duties entailed upon it established by this chapter.

    Section 47. That § 37-22-9 be amended to read:

    37-22-9. The Division of Commercial Inspection and Licensing department or any agent, employee, or scale inspector of the division department may at any time, without notice, enter any place maintaining a scale subject to the provisions of this chapter and test and seal all weighing scales and measures used in conducting such the business.

    Section 48. That § 37-22-10 be amended to read:

    37-22-10. The Division of Commercial Inspection and Licensing department shall charge and collect a fee for each inspection or testing of scales. The fee shall be paid upon demand of the division department by the person, firm, or corporation owning or operating the scale inspected or tested. The schedule of fees is as follows:

            (1)    Up to and including 1,001 to 2,000 pounds capacity:, inclusive, twenty-nine dollars;

            (a)    From July 1, 2007, through June 30, 2008--twenty dollars;

            (b)    From July 1, 2008, through June 30, 2009--twenty-four dollars;

            (c)    Beginning July 1, 2009--twenty-nine dollars;

            (2)    2,001 to 5,000 pounds capacity, inclusive:, forty-eight dollars;

            (a)    From July 1, 2007, through June 30, 2008--thirty-three dollars;

            (b)    From July 1, 2008, through June 30, 2009--forty-one dollars;

            (c)    Beginning July 1, 2009--forty-eight dollars;

            (3)    5,001 to 40,000 pounds capacity, inclusive:, eighty-two dollars;

            (a)    From July 1, 2007, through June 30, 2008--sixty-seven dollars;

            (b)    From July 1, 2008, through June 30, 2009--seventy-five dollars;

            (c)    Beginning July 1, 2009--eighty-two dollars;

            (4)    Over 40,000 pounds capacity:, one hundred three dollars;

            (a)    From July 1, 2007, through June 30, 2008--eighty-four dollars;

            (b)    From July 1, 2008, through June 30, 2009--ninety-four dollars;

            (c)    Beginning July 1, 2009--one hundred three dollars;

            (5)    All livestock scales:, one hundred seventy-three dollars.

            (a)    From July 1, 2007, through June 30, 2008--one hundred twenty-four dollars;

            (b)    From July 1, 2008, through June 30, 2009--one hundred forty-eight dollars;

            (c)    Beginning July 1, 2009--one hundred seventy-three dollars.

    If a special or emergency inspection is requested, a charge, not to exceed the actual cost of such the inspection, including costs for personnel, equipment, and mileage, shall be made and assessed against the requesting individual person or device owner.

    It is the intent of the Legislature that one-half of the inspection program funding may be derived from the general fund and the other half from the fees collected pursuant to this section and 34-39-3, 37-21-9.1, 37-21A-3, and 37-21A-7, through the General Appropriations Act.

    Section 49. That § 37-22-12 be amended to read:

    37-22-12. Whenever If a request is made by the owner to test a scale outside of the regular route or regular tour of inspection of any scale inspector or inspectors and it is found necessary by the Division of Commercial Inspection and Licensing department to send and dispatch a scale inspector or inspectors with the scale inspection truck and its scale testing equipment, a charge, based upon the number of hours it takes for such the travel from the point of departure to the place where such the scale inspection and testing is to be made and return to the point of departure, shall be made and assessed against the owner of such the scale and collection made as provided in. The fee shall be charged and collected pursuant to the provisions of § 37-22-10. Such The per hour charge shall be fixed and collected by the division department.

    Section 50. That § 37-22-13 be amended to read:

    37-22-13. If the person making an inspection pursuant to § 37-22-9 finds any scales scale in use in such place inaccurate, the inspector shall condemn, or reject for repair, the scales scale and attach thereto to the scale a card, notice, or other device, indicating that the scales are scale is condemned or rejected. It is a Class 2 misdemeanor for any person to remove, deface, or destroy such the card, notice, or other device placed upon the condemned or rejected scales. Scales scale. Any scale tagged as ", condemned for repairs", shall be repaired or corrected within sixty days, and they. The scale may not be used for any purpose until they have the scale has been repaired, retested, found to be correct, and are is placed in service by a registered service agency or agent or until the Division of Commercial Inspection and Licensing shall consent department has consented to the further use of such scales the scale. The owner or operator of any weighing device tagged or marked ", rejected for repair", may continue to use the device but shall have the device repaired or corrected within thirty days by a registered service agency or agent.

    Section 51. That § 37-22-16 be amended to read:

    37-22-16. All fees and funds of any kind Any money collected under the provisions of this chapter shall be by the Division of Commercial Inspection and Licensing deposited with the state treasurer and by him credited to deposited in the general fund.

    Section 52. That § 37-22-17 be amended to read:

    37-22-17. Except as otherwise provided in this chapter, any person:

            (1)    Neglecting to install a seal for the preservation of adjustment as required by this chapter, upon any scale under the jurisdiction of the Division of Commercial Inspection and Licensing department, after thirty days' notice so to do;

            (2)    Removing, defacing, or destroying any seal placed upon any scale by any agent,

employee, or scale inspector of the division department for the purpose of fixing or preserving the adjustment of the scale in order to ensure its accuracy;

            (3)    Removing, defacing, or destroying any seal, tag, card, notice, or other device placed upon any scale by any agent, employee, or scale inspector of the division department for the purpose of indicating that the scale has been condemned, and must may not be used;

            (4)    Using or permitting the use of any scale that has been tested and found to be incorrect, before it is again tested and found to be correct and the further use thereof of the scale is authorized or consented to by the division department;

            (5)    Preventing or attempting to prevent or in any way interfering with any member, inspector, agent, or employee, or scale inspector of the division department from entering the premises where such scales a scale may be kept, or inspecting or testing such scales a scale; or

            (6)    Neglecting to observe any rule or regulation of the division department relating to scales a scale;

is guilty of a Class 2 misdemeanor.

    Section 53. That § 37-22-18 be amended to read:

    37-22-18. The director of the Division of Commercial Inspection and Licensing secretary may grant a variance, upon request from a scale owner or operator, to any rules or specifications governing the scale except those specifying a tolerance or the value of a minimum division. The owner or operator shall demonstrate the variance is needed due to economic unfeasibility or impossibility of conformance with specifications. The variance shall be consistent with good commercial practices in South Dakota and, under normal circumstances, the weighing equipment shall remain accurate and reliable and the variance may not harm the owner, operator, or customers any customer. The secretary of the Department of Public Safety shall, pursuant to chapter 1-26, promulgate rules for the application process and criteria to be used in granting or rejecting a variance.

    Section 54. That § 37-22A-3 be amended to read:

    37-22A-3. Each scale ticket issued by vehicle scales used in commercial trade shall show the name of the agency performing the weighing service, the date of the weighing, the number of the scale or other information identifying the scale upon which the weighing is performed, the name of the person or firm having a vehicle weighed, and the name of the weighmaster, or understandable abbreviations of such the names. Scale tickets Each scale ticket issued under this chapter shall be in duplicate form, and serially numbered, and if such tickets are. If the ticket is used on a type-registering weighbeam they, the ticket shall conform to specifications set by the Division of Commercial Inspection and Licensing department. One copy of such the scale ticket shall be retained by the agency performing the weighing service, and one copy of such the scale ticket shall be furnished to the person or firm having the vehicle weighed. No change of weight shall may be made on any such ticket.

    Section 55. That § 37-22A-4 be amended to read:

    37-22A-4. In case of error of the weighmaster in preparing a scale ticket, he the weighmaster shall prepare a corrected ticket showing the corrections correction made and stating on the back thereof the reasons for such changes. In event of of the ticket the reason for the change. If an error in the preparation of such the ticket, other than the weight, due to misinformation having been furnished to the weighmaster by the person or firm having a vehicle weighed, the weighmaster upon request of such the person or firm shall issue another ticket bearing the appropriate corrections

correction or a correction slip which shall show thereon the changes shows any change made and on the back thereof the reasons for such changes of the ticket and the reason for the change. Before such the correction ticket or slip shall be is issued the weighmaster shall require the person requesting the change to sign such the ticket or slip. The correction ticket or slip shall be attached to the original ticket, bear the same serial number, and show on its face that it is a correction ticket or slip.

    Section 56. That § 37-22A-5 be amended to read:

    37-22A-5. The provisions of chapter 37-22, relating to heavy scales and defining the duties and powers of the Division of Commercial Inspection and Licensing shall department apply to and govern the administration and enforcement of this chapter.

    Section 57. That chapter 34-39 be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Department," the Department of Public Safety;

            (2)    "Secretary," the secretary of the Department of Public Safety.

    Section 58. That chapter 37-20 be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Department," the Department of Public Safety;

            (2)    "Secretary," the secretary of the Department of Public Safety.

    Section 59. That chapter 37-21 be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Department," the Department of Public Safety;

            (2)    "Secretary," the secretary of the Department of Public Safety.

    Section 60. That chapter 37-22 be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Department," the Department of Public Safety;

            (2)    "Secretary," the secretary of the Department of Public Safety.

    Section 61. That chapter 37-22A be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Department," the Department of Public Safety;

            (2)    "Secretary," the secretary of the Department of Public Safety.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\184.wpd
CHAPTER 184

(SB 120)

Appropriation for health care recruitment assistance program.


        ENTITLED, An Act to make an appropriation to reimburse certain family physicians, dentists, physician assistants, and nurse practitioners who have complied with the requirements of the recruitment assistance program and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of five hundred eighteen thousand six hundred dollars ($518,600), or so much thereof as may be necessary, to the Department of Health for the purpose of reimbursing three family physicians, one dentist, two physician assistants, and three nurse practitioners who have, in the determination of the department, met the requirements of § 34-12G-3.

    Section 2. The secretary of the Department of Health shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 7, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\185.wpd
CHAPTER 185

(HB 1170)

Appropriation for the
rural health care facility recruitment assistance program.


        ENTITLED, An Act to make an appropriation to reimburse certain eligible health care professionals who have complied with the requirements of the rural health care facility recruitment assistance program and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of two hundred seventy-seven thousand five hundred dollars ($277,500), or so much thereof as may be necessary, to the Department of Health for the purposes of reimbursing eligible health care practitioners who have, in the determination of the department, met the requirements of § 34-12G-12.

    Section 2. The secretary of the Department of Health shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.


    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\185.wpd

ALCOHOLIC BEVERAGES

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\186.wpd
CHAPTER 186

(HB 1052)

Alcoholic beverage license restrictions
on Department of Revenue employees.


        ENTITLED, An Act to revise certain alcoholic beverage business restrictions on Department of Revenue employees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 35-1-3 be amended to read:

    35-1-3. Neither the secretary nor any of the secretary's employees may, directly or indirectly, employee of the division within the department that issues any alcoholic beverage license may have any interest, financial or otherwise, in the production, transportation, storage, or sale of alcoholic beverages.

     Signed February 12, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\187.wpd
CHAPTER 187

(SB 102)

Limited alcoholic beverage licenses on higher education campus.


        ENTITLED, An Act to allow certain alcoholic beverage licenses and special event alcoholic beverage licenses to be issued on certain lands and facilities located on state educational institution campuses.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 35-2-6.1 be amended to read:

    35-2-6.1. No on-sale or off-sale license may be granted under this title to operate on the campus

of any state educational institution. However, if the outside boundary of any state educational institution is extended this section does not apply to any license granted previous to the extension. The provisions of this section do not apply to the school for the deaf established by chapter 13-62. For the purpose of this section, " the term, campus" shall mean, means only the area immediately surrounding the buildings used for classrooms, administrative offices, athletic facilities, and housing.

    Notwithstanding the provisions of this section:

            (1)    An alcoholic beverage license may be issued pursuant to subdivisions 35-4-2(12), (16), and (20) for the sole purpose of permitting the licensee to engage in the periodic retail sale of malt beverages or wine for consumption on-site at a location and time, authorized by the Board of Regents, that involves the performing arts, intercollegiate athletics, fund raising, a reception, a conference, or an occasional or scheduled event at a facility used for performing arts, intercollegiate athletics, events, or receptions; and

            (2)    A special events license may be issued pursuant to §§ 35-4-124, 35-4-124.1, and 35-4-125 for a special event authorized by the Board of Regents that involves the performing arts, intercollegiate athletics, fund raising, a reception, a conference, or an occasional or scheduled event.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\188.wpd
CHAPTER 188

(HB 1210)

On-sale alcoholic beverage licenses for municipal auditoriums.


        ENTITLED, An Act to revise certain provisions regarding on-sale alcoholic beverage licenses for municipal auditoriums and convention halls and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 35-4-14.1 be amended to read:

    35-4-14.1. Notwithstanding the provisions of § 35-4-11, any municipality with a population in excess of thirty-five thousand may issue an on-sale license pursuant to subdivision 35-4-2(4) to a municipal auditorium operated pursuant to chapter 9-52 or to a public convention hall operated pursuant to chapter 9-53 for use during a convention activity or an entertainment event, including any theatrical or musical performance, rodeo, sporting event, or show. The selling, serving, or dispensing of any alcoholic beverage at the municipal auditorium may not occur more than one hour before the commencement of the event or at any time after the event is concluded. A license issued pursuant to this section may not be transferred.

    Section 2. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 18, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\189.wpd
CHAPTER 189

(HB 1092)

Local permits revised
for the sale and consumption of alcoholic beverages.


        ENTITLED, An Act to revise requirements for local permits for the sale and consumption of alcoholic beverages on certain property abutting licensed establishments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 35-4-77.1 be amended to read:

    35-4-77.1. Notwithstanding the provisions of § 35-4-75, the governing body of the municipality charged with the approval of alcoholic beverage license issuance may, by ordinance, permit the sale and consumption of alcoholic beverages on a sidewalk or walkway subject to a public right-of-way abutting a licensed premises, provided that the license holder derives more than fifty percent of its gross receipts from the sale of prepared food for consumption on the licensed premises. The sidewalk or walkway subject to a public right-of-way shall be immediately adjacent to and abutting the licensed premises. This section does not apply to any federal-aid eligible highway unless approved in accordance with the applicable requirements for the receipt of federal aid.

    Nothing contained in this section prevents the governing body from imposing conditions or restrictions that it deems appropriate.

    The sidewalk or walkway subject to a public right-of-way where the sale and consumption of alcoholic beverages is permitted does not constitute a public place as defined in § 35-1-5.3, if the sidewalk or walkway subject to a public right-of-way has been properly authorized for sale and consumption of alcoholic beverages pursuant to this section. The hours of authorized sale and consumption on the sidewalk or walkway subject to a public right-of-way as provided by this section shall be consistent with the hours permitted for the on-sale license.

    A violation of any provision of Title 35 by an alcoholic beverage license holder conducting business on a sidewalk or walkway subject to a public right-of-way pursuant to this section constitutes a violation of Title 35 as if the violation had occurred in or on the licensed premises.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\189.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\190.wpd
CHAPTER 190

(SB 2)

Alcoholic beverage tax revenue, distribution revised.


        ENTITLED, An Act to revise the distribution of the revenue from the alcoholic beverage fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 35-5-22 be amended to read:


    35-5-22. Twenty-five percent of all of the revenues deposited in the alcoholic beverage fund shall revert to the municipalities. The Each municipality's share of each municipality of such the fund shall be determined by the ratio of the population of such each municipality has to the total population of all the municipalities sharing in the receipts from such tax. The Department of Revenue shall make such the reversion by remitting not later than November first, February first, May first, and August first, of each year to the finance officer of each such municipality its share of such fund, and the fund. The amount so received by such each municipality shall be deposited in its the municipality's general fund.

    Section 2. That chapter 35-5 be amended by adding a NEW SECTION to read:

    Twenty-five percent of all of the revenues deposited in the alcoholic beverage fund shall revert to the counties. Twenty-five percent of such alcoholic beverage fund so distributed to counties shall be divided equally by all counties. The remaining seventy-five percent shall be allocated to counties by the ratio of the population of each county to the total population of all the counties sharing in the receipts. The Department of Revenue shall make the reversion by remitting not later than November first, February first, May first, and August first, of each year to the county auditor of each county its share of the fund. The amount received by each county shall be deposited in the county's general fund to be dedicated to expenses related to county law enforcement, jails, state's attorneys, public defenders, and court-appointed attorneys.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\190.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\191.wpd
CHAPTER 191

(HB 1078)

Limited immunity from arrest and prosecution
for alcohol related offenses for someone who assists a person.


        ENTITLED, An Act to grant limited immunity from arrest and prosecution for certain alcohol related offenses to persons who assist a person in need of emergency assistance or who are themselves in need of emergency assistance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    No person may be arrested or prosecuted for any misdemeanor offense of underage consumption, open container, or public intoxication, arising out of underage consumption of alcohol if that person contacts any law enforcement or emergency medical services and reports that a person is in need of emergency medical assistance due to alcohol consumption and that person:

            (1)    Assists the person in need of emergency medical assistance until assistance arrives; and

            (2)    Remains and cooperates with medical assistance and law enforcement personnel on the scene.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    No person under the age of twenty-one years may be prosecuted for any misdemeanor offense of underage consumption, open container, or public intoxication, arising out of underage consumption of alcohol if that person contacts law enforcement or emergency medical services and

reports that he or she is in need of medical assistance due to alcohol consumption and that person remains and cooperates with medical assistance and law enforcement personnel on the scene.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\191.wpd

PROFESSIONS AND OCCUPATIONS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\192.wpd
CHAPTER 192

(SB 37)

Uniform Plumbing Code updated.


        ENTITLED, An Act to adopt the 2015 edition of the Uniform Plumbing Code.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-25-15 be amended to read:

    36-25-15. The commission shall, in compliance with chapter 1-26, adopt and publish minimum standards relative to the design, construction, installation, improvement, extension, and alteration of materials, piping, venting, fixtures, appliances, and appurtenances in relation to plumbing and plumbing systems. All plumbing and plumbing systems shall be designed, constructed, installed, improved, extended, and altered in substantial accord with the requirements of the 2009 2015 Uniform Plumbing Code, International Association of Plumbing and Mechanical Officials, as in effect January 1, 2009 2015, and such amendments or revision adopted by the commission to protect the health, life, safety, and welfare of persons and property in this state.

     Signed February 8, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\192.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\193.wpd
CHAPTER 193

(HB 1104)

Dental hygienist licensing revisions.


        ENTITLED, An Act to revise certain provisions regarding the practice of dental hygiene.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-6A-1 be amended to read:

    36-6A-1. Terms used in this chapter mean:

            (1)    "Allied dental educational program," a dental hygiene, dental assisting, or laboratory technology educational program;

            (2)    "Board," the State Board of Dentistry;

            (3)    "Collaborative agreement," a written agreement between a supervising dentist and a dental hygienist authorizing the preventive and therapeutic services that may be performed by the dental hygienist under collaborative supervision;

            (4)    "Collaborative supervision," the supervision of a dental hygienist requiring a collaborative agreement between a supervising dentist and a dental hygienist;

            (5)    "Commercial dental laboratory," an enterprise engaged in making, providing, repairing, or altering oral prosthetic appliances and other artificial materials and devices which are returned to a dentist and inserted into the human oral cavity or which come in contact with its adjacent structures and tissues;

            (6)    "Complete evaluation," a comprehensive examination, review of medical and dental history, the formulation of a diagnosis, and the establishment of a written treatment plan, documented in a written or electronic record to be maintained by the dentist's clinic or other treatment facility or institution;

            (7)    "Dental," pertaining to dentistry;

            (8)    "Dental assistant," a person who, under the supervision of a dentist or dental hygienist, renders assistance as authorized by this chapter;

            (9)    "Dental auxiliary," any person, other than a dental hygienist, that works under the supervision of a dentist and provides dental services to a patient;

            (10)    "Dental corporation," any entity formed pursuant to chapter 47-12;

            (11)    "Dental hygienist," a person licensed as a dental hygienist pursuant to this chapter, who, under the supervision of a dentist, renders the diagnostic, preventive, or therapeutic dental services, and any educational services provided pursuant thereto, as authorized by this chapter, as well as any related extra-oral procedure required in the practice of those services;

            (12)    "Dental radiographer," a person registered as a dental radiographer pursuant to this chapter;

            (13)    "Dental radiography," the application of X-radiation to human teeth and supporting structures for diagnostic purposes only;

            (14)    "Dental specialist," a dentist in a specialty recognized by the board that has graduated from a postdoctoral specialty program recognized and approved by the American Dental Association Commission on Dental Accreditation;

            (15)    "Dental technician," a person performing acts authorized pursuant to this chapter, who, at the authorization of a dentist, makes, provides, repairs, or alters oral prosthetic appliances and other artificial materials and devices which are returned to a dentist and inserted into the human oral cavity or which come in contact with its adjacent structures and tissues;

            (16)    "Dentist," a person licensed as a dentist pursuant to this chapter;

            (17)    "Dentistry," the examination, evaluation, diagnosis, prevention, or treatment, including surgery and the prescribing of drugs, of diseases, disorders, or conditions of the human oral cavity or its adjacent or associated tissues and structures of the maxillofacial area, and

their impact on the human body;

            (18)    "Direct supervision," the supervision of a dental hygienist or registered dental assistant requiring that a dentist diagnose the condition to be treated, a dentist authorize the procedure to be performed, a dentist remain in the dental clinic while the procedure is performed, and before dismissal of the patient a dentist approve the work performed by the dental hygienist or registered dental assistant;

            (19)    "Expanded functions," reversible procedures which require professional proficiency and specific training, performed under the direct supervision of a dentist;

            (20)    "General supervision," the supervision of a dental hygienist requiring that a dentist authorize the procedures to be carried out, and that the patient to be treated is a patient of record of the supervising dentist, or a dentist practicing within the same entity or clinic as the supervising dentist, and has had a complete evaluation within the previous thirteen months of the delegation of procedures. A written treatment plan contained within the patient's record shall accompany any authorization of treatment procedures;

            (21)    "Indirect supervision," the supervision of a dental hygienist or registered dental assistant requiring that a dentist authorize the procedures and a dentist be in the dental clinic while the procedures are performed by the registered dental assistant or dental hygienist;

            (22)    "Lay member," a person who is not a health professional, and who is not a parent, spouse, sibling, or child of a health professional or health professional student. For purposes of board membership, no person with a significant financial interest in a health service or profession may be a lay member;

            (23)    "Licensee," a dentist or dental hygienist;

            (24)    "Oral health review," a limited assessment of a person's oral health through a dentist's review of dental and medical history following a limited clinical inspection by a dental hygienist working under collaborative supervision;

            (25)    "Patient of record," a patient who has undergone a complete evaluation performed by a dentist;

            (25)(26)    "Personal supervision," a level of supervision whereby the dentist or dental hygienist is personally treating a patient and authorizes the dental assistant to aid the treatment by concurrently performing a supportive procedure;

            (26)(27)    "Practitioner," a dentist or dental hygienist;

            (27)(28)    "Registered dental assistant," a person registered as a registered dental assistant pursuant to this chapter who is authorized to perform expanded functions under the direct supervision of a dentist as authorized by this chapter;

            (28)(29)    "Registrant," a dental radiographer or registered dental assistant;

            (29)(30)    "Satellite office," an office, building, or location used regularly by a dentist for the practice of dentistry other than the clinic listed as the primary clinic; and

            (30)(31)    "Teledentistry," the practice of dentistry where the patient and the dentist are not in the same physical location, and which utilizes the exchange of clinical information and images over remote distances.

    Section 2. That § 36-6A-40 be amended to read:

    36-6A-40. Only a dental hygienist licensed to practice pursuant to this chapter may practice dental hygiene unless otherwise stated in this chapter. A dental hygienist may perform those services which are diagnostic, therapeutic, or preventive in nature and are authorized by the board and any educational services provided pursuant to those authorized services. Such services may not include the establishment of a final diagnosis or treatment plan for a dental patient. The services shall be performed under the supervision of a dentist.

    A dental hygienist may perform preventive and therapeutic services under general supervision if all individuals treated are patients of record and all care rendered by the dental hygienist is completed under the definition of patient of record. A dental hygienist may perform preventive and therapeutic services under collaborative supervision if the requirements of § 36-6A-40.1 are met. However, no dental hygienist may perform preventive and therapeutic services under collaborative supervision for more than thirteen months for any person who has not had a complete evaluation or an oral health review by a dentist, unless employed by Delta Dental Plan of South Dakota, a nonprofit dental service corporation organized under chapter 58-39, providing services through written agreement with the Indian Health Service or a federally recognized tribe in South Dakota. The exemption for a dental hygienist employed by Delta Dental Plan of South Dakota providing services through written agreement with the Indian Health Service or a federally recognized tribe in South Dakota expires on June 30, 2016.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\193.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\194.wpd
CHAPTER 194

(SB 29)

Nurse practice act, licensure and Interstate Compact, updated.


        ENTITLED, An Act to update the nurse practice act and to adopt a new Interstate Nurse Licensure Compact.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-9-1 be amended to read:

    36-9-1. Terms as used in this chapter, unless the context otherwise requires, mean:

            (1)    "Advanced practice registered nurse" or "APRN," any person licensed by the board in the role of a clinical nurse specialist or a certified registered nurse anesthetist;

            (2)    "Approved program," any educational program of study which meets the requirements established by this chapter and by the board for licensure or certification under this chapter;

            (2)(3)    "Board," the South Dakota Board of Nursing;

            (3)(4)    "Certified registered nurse anesthetist," any person authorized under this chapter to practice the nursing specialty of nurse anesthesia as defined in § 36-9-3.1;

            (4)(5)    "Clinical nurse specialist," any person authorized under this chapter to practice the nursing specialty of a clinical nurse specialist as defined in § 36-9-87;

            (5)(6)    "Collaboration," communication with a physician licensed under chapter 36-4, prior to before care being is provided, to set goals and objectives for the client to assure quality and appropriateness of services rendered.

            (6)    "Employment," being employed as a nurse for at least one hundred forty hours in any one calendar year;

            (7)    "Comprehensive nursing assessment," collection, analysis, and synthesis of data performed by the registered nurse used to establish a health status baseline, nursing diagnosis, plan nursing care, and address changes in a patient's condition;

            (8)    "Focused nursing assessment," recognizing patient characteristics by a licensed practical nurse that may affect the patient's health status, gathering and recording assessment data, and demonstrating attentiveness by observing, monitoring, and reporting signs, symptoms, and changes in patient condition in an ongoing manner to the supervising health care provider as defined in § 36-9-4;

            (9)    "Licensed," written authorization by the board to practice either as a registered nurse, or a licensed practical nurse, certified nurse anesthetist, or clinical nurse specialist;

            (8)(10)    "Licensed practical nurse," any person duly authorized under this chapter to practice practical nursing as defined in § 36-9-4;

            (9)    "Nursing diagnosis," the identification of and discrimination between physical and psychological signs or symptoms essential to the effective execution and management of a nursing regimen;

            (11)    "Patient" or "client," a recipient of care and may be an individual, family, group, or community;

            (10)(12)    "Public member," any person who is not licensed by the board, but is a user of the services regulated by the board;

            (11)(13)    "Registered nurse," any person authorized under this chapter to practice nursing as defined in § 36-9-3;

            (12)    "Advanced practice registered nurse," or "APRN," any person licensed by the board in the role of a clinical nurse specialist or a certified registered nurse anesthetist.

    For the purposes of this chapter, words used in the feminine gender include the masculine.

    Section 2. That § 36-9-3 be amended to read:

    36-9-3. As used in this chapter, the practice of nursing by a registered nurse means the:

            (1)    Nursing diagnosis of human responses to actual or potential health problems of individuals or groups, providing preventative, restorative and supportive care, health teaching and counseling, case finding and referral; and

            (2)    Administration, supervision, delegation, evaluation and teaching of health and nursing practice; which require substantial specialized knowledge, judgment and skill based upon the principles of the biological, physiological, behavioral and sociological sciences, and for which the registered nurse bears responsibility and accountability.

    The registered nurse may perform in addition to the foregoing, those acts which require additional education which shall be authorized by the board through its rules. The practice of a

registered nurse includes:

            (1)    Providing comprehensive nursing assessment of health status of patients;

            (2)    Collaborating with the health care team to develop and coordinate an integrated patient-centered health care plan;

            (3)    Developing the comprehensive patient-centered health care plan, including:

            (a)    Establishing nursing diagnosis;

            (b)    Setting goals to meet identified health care needs; and

            (c)    Prescribing nursing interventions;

            (4)    Implementing nursing care through the execution of independent nursing strategies and the provision of regimens requested, ordered, or prescribed by authorized health care providers;

            (5)    Evaluating responses to interventions and the effectiveness of the plan of care;

            (6)    Designing and implementing teaching plans based on patient needs;

            (7)    Delegating and assigning nursing interventions to implement the plan of care;

            (8)    Providing for the maintenance of safe and effective nursing care rendered directly or indirectly;

            (9)    Advocating for the best interest of the patient;

            (10)    Communicating and collaborating with other health care providers in the management of health care and the implementation of the total health care regimen within and across settings;

            (11)    Managing, supervising, and evaluating the practice of nursing;

            (12)    Teaching the theory and practice of nursing;

            (13)    Participating in development of health care policies, procedures, and systems; and

            (14)    Other acts that require education and training consistent with professional standards as prescribed by the board, by rules promulgated pursuant to chapter 1-26, and commensurate with the registered nurse's education, demonstrated competence, and experience.

    Section 3. That § 36-9-4 be amended to read:

    36-9-4. As used in this chapter, the practice of licensed practical nursing means:

            (1)    The performance of any acts in the care, treatment, or observation of the ill, injured or infirm;

            (2)    Maintenance of health of others and promotion of health care;

            (3)    Assisting with health counseling and teaching; and

            (4)    Applying procedures to safeguard life and health, including the administration of medications and treatments consistent with the practical nurse's education and preparation under the direction of a physician licensed or exempt from licensing pursuant to chapter 36-4, dentist or registered nurse. A licensed practical nurse practices under the supervision of a registered nurse, advanced practice registered nurse, licensed physician, or other health care provider authorized by the state. A licensed practical nurse is guided by nursing standards established or recognized by the board and includes:

            (1)    Collecting data and conducting a focused nursing assessment of the health status of a patient;

            (2)    Participating with other health care providers in the development and modification of the patient-centered health care plan;

            (3)    Implementing nursing interventions within a patient-centered health care plan;

            (4)    Assisting in the evaluation of responses to interventions;

            (5)    Providing for the maintenance of safe and effective nursing care rendered directly or indirectly;

            (6)    Advocating for the best interest of the patient;

            (7)    Communicating and collaborating with patients and members of the health care team;

            (8)    Assisting with health counseling and teaching;

            (9)    Delegating and assigning nursing interventions to implement the plan of care; and

            (10)    Other acts that require education and training consistent with professional standards as prescribed by the board, by rules promulgated pursuant to chapter 1-26, and commensurate with the licensed practical nurse's education, demonstrated competence, and experience.

    Section 4. That § 36-9-5 be amended to read:

    36-9-5. The Governor shall appoint a board of eleven consisting of six seven registered nurses, three two licensed practical nurses, and two public members.

    Section 5. That § 36-9-6 be amended to read:

    36-9-6. Each member of the board shall be a citizen of the United States, and a resident of this state for two years, and shall file with the secretary of state an oath of office before beginning her a term of office.

    Section 6. That § 36-9-7 be amended to read:

    36-9-7. Registered Each registered nurse members member of the Board of Nursing board shall be licensed in good standing as a registered nurses nurse in this state, shall be graduates a graduate from an approved program for the preparation of registered nurses, shall have had at least five years' years experience since graduation in the practice of nursing, and shall have been actively engaged in nursing for at least three of the last four years preceding appointment.

    Of the six seven registered nurse members, at least two shall be from nursing service or practice and, two from nursing education. Of the two registered nurse members from nursing service or practice, and at least one shall be a certified registered nurse anesthetist, a certified nurse practitioner,

a certified nurse midwife, or a clinical nurse specialist.

    Of the two members from nursing education, one shall be a faculty member or administrator of a practical school of nursing program and one shall be a faculty member or an administrator of a professional school of nursing registered nursing program.

    The composition of the registered nurse members of the board shall, as nearly as practicable, reflect the educational backgrounds of registered nurses as a whole in the state; and the members shall possess the expertise necessary to fulfill the statutory responsibilities of the board.

    Section 7. That § 36-9-8 be amended to read:

    36-9-8. Licensed Each licensed practical nurse members member of the board shall be licensed in good standing as a practical nurses nurse in this state, shall be graduates a graduate of an approved program for the preparation of licensed practical nurses, shall have had at least five years' successful years experience since graduation as a licensed practical nurse, and shall have been actively engaged in practical nursing for at least three of the last four years preceding appointment.

    Section 8. That § 36-9-8.1 be amended to read:

    36-9-8.1. No person may qualify for appointment as a public member if that person or any member of her immediate family is then serving serves as a member of any other state licensing board or is engaged for compensation in the provision of health services or the provision of health research, instruction, or insurance.

    Section 9. That § 36-9-9 be amended to read:

    36-9-9. The term of office for the members of the Board of Nursing each member of the board is three years and expires on October thirtieth. Each member shall serve until a successor has been appointed and qualified. No member may be appointed to more than three consecutive full terms. However, appointment of a person to an unexpired term is not considered a full term for this purpose.

    At the expiration of a term, or if a vacancy occurs, the Governor shall appoint a new board member. The Governor may stagger terms to enable the board to have different terms expire each year.

    The appointee's term expires on October thirtieth in the third year of appointment.

    Any member's term ending June 30, 2013, or thereafter is extended to October thirtieth in the year the term is to expire.

    Section 10. That § 36-9-12 be amended to read:

    36-9-12. The board may determine the qualifications, and employ in accordance with chapter 3-6A 3-6D, a person who is not a member of the board to serve as executive secretary director.

    Section 11. That § 36-9-14 be amended to read:

    36-9-14. The board may, in conformity with chapter 3-6A 3-6D, define the duties of, and fix the compensation for, the executive secretary director.

    Section 12. That § 36-9-15 be amended to read:

    36-9-15. The board may delegate to the executive secretary director those activities that will expedite the functions of the board.



    Section 13. That § 36-9-21 be amended to read:

    36-9-21. The Board of Nursing board shall promulgate rules pursuant to chapter 1-26 pertaining to:

            (1)    Licensing and licenses;

            (2)    The practice of nursing;

            (3)    Scope of nursing practice;

            (4)    Except as otherwise provided in § 36-9-28, the delegation of nursing functions to unlicensed assistive personnel under the supervision of a licensed nurse;

            (5)    Except as otherwise provided in § 36-9-28, the training, registration, and supervisory requirements for unlicensed personnel performing delegated nursing functions under the supervision of a licensed nurse;

            (6)    Disciplinary proceedings;

            (7)    Certification of nurse anesthetists;

            (8)    Fees; and

            (9)(8)    Approval of nursing education and clinical enrichment programs.

    Section 14. That § 36-9-24 be amended to read:

    36-9-24. All fees received by the Board of Nursing board, and money collected under this chapter, shall be deposited in the bank as authorized by the board. However, the board may require any applicant who is taking a nationally administered examination to remit the portion of the licensing fee covering the cost of such examination directly to the organization administering the examination. The funds may be withdrawn by the executive secretary director as authorized by the board. A report of all receipts and expenditures of the funds shall be made at the close of each fiscal year to the state auditor and filed in his office. All compensation and expenditures made by the board shall be paid from the fees received under the provisions of this chapter.

    Section 15. That § 36-9-28 be amended to read:

    36-9-28. This chapter does not prohibit:

            (1)    Any nursing assistance in an emergency;

            (2)    The practice of nursing included in a program of study by a student enrolled in an approved prelicensure program for the preparation of registered nurses or licensed practical nurses;

            (3)    The practice of a legally qualified nurse from another state employed by the United States government and performing her the nurse's official duty in this state;

            (4)    Gratuitous care of friends or members of the family;

            (5)    Domestic administration of family remedies, or care of the sick by domestic servants, housekeepers, companions, or household aides of any type, whether employed regularly or because of an emergency or illness, but who shall may not in any way assume to practice nursing as defined in this chapter;

            (6)    The nursing or care of the sick, with or without compensation, when done in connection with the practice of the religious tenets of any church by adherents thereof, so long as they do the person does not engage in the practice of nursing as defined in this chapter;

            (7)    The practice of nursing in this state by a nurse currently licensed in another state or territory whose employment requires her the nurse to accompany and care for a patient in South Dakota during one such employment not to exceed three months in length; provided, however, that such person shall. However, the nurse may not hold herself or himself out to be licensed in this state;

            (8)    The practice of the functions of a certified registered nurse anesthetist by a registered nurse enrolled as a student in an approved program for the preparation of certified registered nurse anesthetists;

            (9)    The practice of nursing in this state by a nurse currently licensed in another state, territory, or foreign country who is present in this state to lecture provide education relative to the practice of nursing for a period of not more than five days;

            (10)    The administration of medications, other than by the parenteral route, by staff of community support providers, group homes, and supervised apartments certified or approved by the Department of Human Services, when under the supervision of a licensed registered nurse. The Department of Human Services, in consultation with the South Dakota Board of Nursing board, shall promulgate rules pursuant to chapter 1-26 for administration of medications by such staff;

            (11)    The assistance with or performance of bowel and bladder care, other than the insertion or removal of suprapubic and foley catheters, by domestic servants, housekeepers, companions, or household aides, at the direction of a person needing such care who resides independently outside of any hospital, nursing or health care facility, or other similar institutional setting;

            (12)    The administration of medications, other than by the parenteral route, by staff of community mental health centers, community mental health residential facilities, and community support services programs certified or approved by the Department of Social Services. The administration of medications shall be under the direct or indirect supervision of a registered nurse. The Department of Social Services and the South Dakota Board of Nursing board shall promulgate rules pursuant to chapter 1-26 for administration of medications by such staff;

            (13)    The services performed in accordance with § 28-8A-10 by a personal attendant when acting at the direction of a person with a disability; and

            (14)    The practice of nursing included in a program of study by a registered nurse enrolled in an approved program for the preparation of a clinical nurse specialist.

    Section 16. That § 36-9-29 be amended to read:

    36-9-29. The Board of Nursing board may examine, license, and renew the licenses of duly qualified applicants. The board may certify and renew the certification of qualified applicants.

    Section 17. That § 36-9-30.1 be amended to read:

    36-9-30.1. An applicant for certification licensure as a certified registered nurse anesthetist shall submit to the Board of Nursing board written evidence, verified by oath, that said the applicant:

            (1)    Is currently licensed by the board or has a privilege to practice in this state as a registered

nurse;

            (2)    Has completed an approved program for the preparation of registered nurse anesthetists; and

            (3)    Has passed any examination, written or oral, or both, which the board in its discretion may require current certification from a national certifying body recognized by the board; and

            (4)    Is otherwise qualified under § 36-9-49.

    Section 18. That § 36-9-31 be amended to read:

    36-9-31. Upon application and payment of the required fee, the applicant for a license to practice as a registered nurse shall pass a written examination approved by the board. Upon achieving the passing score standard as determined by the board and if otherwise qualified under § 36-9-49, the board shall issue to the applicant a license to practice as a registered nurse.

    Section 19. That § 36-9-32 be amended to read:

    36-9-32. Upon application and payment of the required fee, the Board of Nursing board may issue a license to practice as a registered nurse by endorsement to an applicant who has been licensed as a registered nurse under the laws of another state, territory, or foreign country, if, in the opinion of the board, the applicant meets the qualifications required of registered nurses in this state at the time of original licensure. However, if any applicant for licensure by endorsement has not been employed as a nurse for more than engaged in the practice of nursing in the past six years, the board may establish reentry standards, by rules promulgated pursuant to chapter 1-26, and may require such written evidence, verified by oath, as may be deemed necessary to determine compliance with such the standards.

    Section 20. That § 36-9-35 be amended to read:

    36-9-35. The Board of Nursing board shall promulgate by rule, pursuant to chapter 1-26, the following nonrefundable registered nurse fees which the board shall collect in advance from applicants:

            (1)    For initial licensure by examination or endorsement, not more than two hundred dollars, exclusive of any fee which may be required for a nationally administered examination;

            (2)    For reexamination, not more than the amount then required for licensure by examination;

            (3)    For endorsement verification of licensure to another state, territory, or foreign country, not more than thirty dollars;

            (4)    For initial certified registered nurse anesthetist certification licensure, not more than two hundred dollars;

            (5)    For issuance of any temporary or limited permit, not more than fifty dollars;

            (6)    For biennial renewal of license, not more than one hundred fifty dollars;

            (7)    For reinstatement of a lapsed license or certified registered nurse anesthetist certification, the current renewal fee plus not more than one hundred dollars;

            (8)    For providing a transcript, not more than five dollars;

            (9)    For effecting a name change upon the records of a licensee or certified registered nurse anesthetist certificate holder, not more than twenty dollars;

            (10)    For issuing a duplicate license or certified registered nurse anesthetist certificate, not more than thirty dollars;

            (11)    For biennial renewal of certified registered nurse anesthetist certification license, not more than one hundred fifty dollars;

            (12)    For placing a license or certified registered nurse anesthetist certification on inactive status, not more than twenty dollars;

            (13)    For issuance of any limited license, not more than thirty dollars.

    Section 21. That § 36-9-38 be amended to read:

    36-9-38. Upon application and payment of the required fee, the applicant for a license to practice as a licensed practical nurse shall pass a written examination approved by the board. Upon achieving the passing score standard as determined by the board and if otherwise qualified under § 36-9-49, the board shall issue to the applicant a license to practice as a licensed practical nurse.

    Section 22. That § 36-9-39 be amended to read:

    36-9-39. Upon application and payment of the required fee, the Board of Nursing board may issue a license to practice as a licensed practical nurse by endorsement to any applicant who is a graduate of an approved program or has met the requirements by equivalency and has been licensed as a licensed practical nurse or licensed vocational nurse under the laws of another state, territory, or foreign country, if, in the opinion of the board, the applicant meets the qualifications required of licensed practical nurses in this state at the time of original licensure. However, if any applicant for licensure by endorsement has not been employed as a nurse for more than engaged in the practice of nursing in the past six years, the board may establish reentry standards, by rules promulgated pursuant to chapter 1-26, and may require such written evidence, verified by oath, as may be deemed necessary to determine compliance with such the standards.

    Section 23. That § 36-9-43 be amended to read:

    36-9-43. The Board of Nursing board shall promulgate by rule, pursuant to chapter 1-26, the following nonrefundable licensed practical nurse fees which the board shall collect in advance from applicants:

            (1)    For initial licensure by examination or endorsement, not more than two hundred dollars, exclusive of any fee which may be required for a nationally administered examination;

            (2)    For reexamination, not more than the amount then required for licensure by examination;

            (3)    For endorsement verification of licensure to another state, territory, or foreign country, not more than thirty dollars;

            (4)    For issuance of any temporary or limited permit, not more than fifty dollars;

            (5)    For biennial renewal of license, not more than one hundred fifty dollars;

            (6)    For reinstatement of a lapsed license, the current renewal fee plus not more than one hundred dollars;

            (7)    For providing a transcript, not more than five dollars;

            (8)    For effecting a name change upon the records of a licensee, not more than twenty dollars;

            (9)    For issuing a duplicate license, not more than thirty dollars;

            (10)    For placing a license on inactive status, not more than twenty dollars.

    Section 24. That § 36-9-45 be amended to read:

    36-9-45. The license of any person licensed under the provisions of this chapter shall be renewed biennially, except as provided in § 36-9-46. The expiration date shall be established by the rules of the board pursuant to chapter 1-26. The board shall mail provide a notice for renewal of license to each licensee at least ninety days prior to the expiration date of the person's license. The licensee shall return submit the required fee to the board before the expiration date. Upon receipt of the fee, the board shall issue to the licensee a certificate of renewal renew the license. The renewal shall render the license holder thereof a legal practitioner of nursing as designated thereon for the period stated on the renewal certificate renewed license. However, if any applicant for renewal of a license has not been employed as a nurse for more than engaged in the practice of nursing in the past six years, the board may establish reentry standards, by rules promulgated pursuant to chapter 1-26, and may require such written evidence, verified by oath, as may be deemed necessary to determine compliance with such the standards.

    Section 25. That § 36-9-45.1 be repealed.

    Section 26. That § 36-9-46 be amended to read:

    36-9-46. A licensee or certificate holder at any time the licensee or certification is current may file written application with the Board of Nursing board, accompanied by the required fee, requesting inactive status and stating the reasons therefor. Upon receipt of the fee, the board shall place the license on inactive status.

    Section 27. That § 36-9-47 be amended to read:

    36-9-47. Any licensee or certificate holder who allows her a license or certification to lapse by failure to renew the same license as provided in §§ 36-9-45 and 36-9-45.1 may be reinstated by the Board of Nursing board on satisfactory explanation for such failure to renew and payment of the required fee.

    Section 28. That § 36-9-47.1 be amended to read:

    36-9-47.1. After a license has been lapsed or inactive for at least six years and the licensee has not engaged in the practice of nursing for the past six years, the Board of Nursing board may require written evidence, verified by oath, of the licensee's successful completion of such the reentry requirements as the board may, by rule establish by rules promulgated pursuant to chapter 1-26, establish. At any time after certification has been lapsed or inactive, the board may require evidence of the certificate holder's current nursing knowledge and skill before reinstating the certificate holder to the status of active practice.

    Section 29. That § 36-9-47.2 be amended to read:

    36-9-47.2. Upon application and payment of the required fee, the Board of Nursing board may issue a limited license to any nurse enrolled in a reentry program to practice only under the direct, personal supervision of a licensed registered nurse. Each limited license shall bear an issuance date and a termination date and may not be valid for more than ninety days. Upon successful completion of a reentry program, the nurse may apply for a license or current renewal certificate renewal of a license.


    Section 30. That § 36-9-49 be amended to read:

    36-9-49. In compliance with chapter 1-26, the Board of Nursing board may deny an application for licensure or certification or may deny, revoke, or suspend a license or certificate and may take other disciplinary or corrective action it the board considers appropriate in addition to or in lieu of such an action upon proof that the applicant, or licensee, or certificate holder has:

            (1)    Committed fraud, deceit, or misrepresentation in procuring or attempting to procure licensure or certification;

            (2)    Been convicted of a felony. The conviction of a felony means the conviction of any offense which, if committed within the State of South Dakota, would constitute a felony under its laws;

            (3)    Engaged in the practice of nursing under a false or incorrect name or under a fictitious or assumed business name which has not been registered pursuant to chapter 37-11 or impersonated another licensee or certificate holder of a like or different name;

            (4)    Become addicted to the habitual use of intoxicating liquors or controlled drugs as defined by chapter 34-20B to such an extent as to result in incapacitation from the performance of professional duties Committed an alcohol or drug related act or offense that interferes with the ability to practice nursing safely;

            (5)    Negligently, willfully, or intentionally acted in a manner inconsistent with the health or safety of persons a person entrusted to his or her the applicant's or licensee's care;

            (6)    Had a license, certificate, or privilege to practice as a registered nurse, licensed practical nurse, certified registered nurse anesthetist, or clinical nurse specialist denied, revoked, or suspended or had other disciplinary action taken in another state, territory, or foreign country;

            (7)    Violated any provisions of this chapter or the rules promulgated under it;

            (8)    Aided or abetted an unlicensed or uncertified person to practice nursing;

            (9)    Engaged in the practice of nursing during a time his or her the applicant's or licensee's license or certificate is lapsed, on inactive status, suspended, or revoked;

            (10)    Been guilty of incompetence Engaged in unsafe nursing practice, substandard care, or unprofessional or dishonorable conduct;

            (11)    Exercised influence within the nurse-patient relationship for the purpose of engaging a patient in sexual activity. For the purpose of this subdivision, the patient is presumed incapable of giving free, full, and informed consent to sexual activity with the nurse; or

            (12)    Engaged in gross sexual harassment or sexual contact.

    Section 31. That § 36-9-49.1 be amended to read:

    36-9-49.1. In addition to the provisions for summary suspension in § 1-26-29, the board may take action pursuant to § 36-9-49 upon a showing that the physical or mental condition of the licensee, certificate holder or applicant endangers the health or safety of those persons a person who are is or will be entrusted to her the licensee's or applicant's care. A majority of the board may demand an examination of the licensee, certificate holder or applicant by a competent medical or psychological examiner selected by the board at the board's expense. If the licensee, certificate holder or applicant fails to submit to the examination, the board may immediately suspend her the license or certification

or deny her the application.

    Section 32. That § 36-9-51.1 be amended to read:

    36-9-51.1. Any license or certification may be suspended, revoked, or reissued only after a hearing conducted by a hearing examiner appointed by the board or by a majority of the members of the board.

    Section 33. That § 36-9-51.2 be amended to read:

    36-9-51.2. Any proceeding relative to the revocation or suspension of a license or certification shall otherwise conform to the procedure set forth in chapter 1-26.

    Section 34. That § 36-9-51.3 be amended to read:

    36-9-51.3. Any decision of the board to suspend, revoke, or reissue a license or certification requires a majority vote of the board membership.

    Section 35. That § 36-9-51.4 be amended to read:

    36-9-51.4. Any party aggrieved by any act, ruling, or decision of the board relating to the refusal to grant, the denial, revocation, suspension, or reissuance of a license or certification may appeal pursuant to chapter 1-26.

    Section 36. That § 36-9-57 be amended to read:

    36-9-57. Any revoked or suspended license or certification may be reissued at the discretion of the board upon a finding of good cause.

    Section 37. That § 36-9-58 be amended to read:

    36-9-58. The board may approve curricula and standards for educational programs preparing persons for licensure and certification under this chapter.

    Section 38. That § 36-9-68 be amended to read:

    36-9-68. No person may:

            (1)    Sell or fraudulently obtain or furnish a diploma, license, certificate, renewal of license or certificate, or any other record necessary to practice nursing under this chapter or aid or abet in such actions;

            (2)    Practice nursing as defined in this chapter under cover of any diploma, license, renewal of license or certificate, or other record necessary to practice nursing under this chapter that was illegally or fraudulently obtained or signed or that was issued unlawfully or under fraudulent representation;

            (3)    Practice or offer to practice as a registered nurse, licensed practical nurse, registered nurse anesthetist, or clinical nurse specialist without being licensed or certified under this chapter;

            (4)    Use in connection with the person's name a sign, card, device, or other designation tending to imply that the person is a registered nurse, a licensed practical nurse, a certified registered nurse anesthetist, or a clinical nurse specialist without being licensed or certified under this chapter;

            (5)    Practice nursing as defined in this chapter during any time that the person's license or certificate is lapsed, on inactive status, suspended, or revoked;

            (6)    Conduct a nursing education program for the preparation of registered nurses, licensed practical nurses, certified registered nurse anesthetists, or clinical nurse specialists unless the program has been approved by the Board of Nursing board; or

            (7)    Otherwise violate any of the provisions of this chapter.

    A violation of this section is a Class 1 misdemeanor.

    Section 39. That § 36-9-72 be amended to read:

    36-9-72. The Board of Nursing board may in the name of the people of the State of South Dakota, through the attorney general of the State of South Dakota, or in its the board's own name apply for an injunction in the circuit court for the county of the person's residence to enjoin any person who:

            (1)    Is unlawfully practicing nursing as defined in this chapter without a license or certification issued by the board;

            (2)    Is practicing nursing as defined in this chapter under a license or certification that is lapsed, on inactive status, suspended, or revoked;

            (3)    Is endangering, or threatening to endanger, the health or safety of those entrusted to that person's the licensee's or applicant's care in the practice of nursing as defined in this chapter.

    An action for injunction is an alternate to criminal proceedings, and the commencement of one proceeding by the board constitutes an election. Upon the filing of a verified complaint, the court, if satisfied by affidavit or otherwise, that the person is or has been engaging in unlawful or dangerous practice as above described in this section, may issue a temporary injunction, without notice or bond, enjoining the defendant from further practice as a registered nurse, licensed practical nurse, certified registered nurse anesthetist, or clinical nurse specialist.

    Section 40. That § 36-9-86 be amended to read:

    36-9-86. An applicant for licensure as a clinical nurse specialist shall submit to the Board of Nursing board written evidence, verified by oath, that the applicant:

            (1)    Is currently licensed by the board as a registered nurse or has a privilege to practice in this state;

            (2)    Holds a masters degree in nursing by completion of an approved program; and Has completed an accredited graduate or post-graduate level advanced practice registered nurse program in the clinical nurse specialist role;

            (3)    Has completed an examination approved by the board Is currently certified by a national certifying body recognized by the board in the clinical nurse specialist role; and

            (4)    Is otherwise qualified under § 36-9-49.

    Any person licensed pursuant to §§ 36-9-85 to 36-9-91, inclusive, prior to July 1, 1996, is exempt from subdivision (3) of this section. The Board of Nursing board may adopt promulgate rules, pursuant to chapter 1-26, regarding the application and examination process for licensure as a clinical nurse specialist.

    Section 41. That § 36-9-91 be amended to read:

    36-9-91. The Board of Nursing board shall promulgate rules, pursuant to chapter 1-26, to establish the following fees for clinical nurse specialists:

            (1)    For initial licensure by examination or endorsement, not more than two hundred dollars, exclusive of any fee which may be required for a nationally administered examination;

            (2)    For endorsement verification of licensure to another state, territory, or foreign country, not more than thirty dollars;

            (3)    For issuance of a temporary permit, not more than fifty dollars;

            (4)    For biennial renewal of license, not more than one hundred fifty dollars;

            (5)    For reinstatement of a lapsed license, the current renewal fee plus not more than one hundred dollars;

            (6)    For providing a transcript, not more than five dollars;

            (7)    For issuing a duplicate license, not more than thirty dollars;

            (8)    For placing a license on inactive status, not more than twenty dollars; and

            (9)    For effecting a name change upon the records of a license, not more than twenty dollars.

    The fees shall be paid in advance and are not refundable.

    Section 42. That chapter 36-9 be amended by adding a NEW SECTION to read:

    The Nurse Licensure Compact is enacted into law and entered into with all other jurisdictions that legally join the compact, which is substantially as follows:

ARTICLE I

Finding and Declaration of Purpose

    (a) The party states find that:

            (1)    The health and safety of the public are affected by the degree of compliance with and the effectiveness of enforcement activities related to state nurse licensure laws;

            (2)    Violations of nurse licensure and other laws regulating the practice of nursing may result in injury or harm to the public;

            (3)    The expanded mobility of nurses and the use of advanced communication technologies as part of our nation's health care delivery system require greater coordination and cooperation among states in the areas of nurse licensure and regulation;

            (4)    New practice modalities and technology make compliance with individual state nurse licensure laws difficult and complex;

            (5)    The current system of duplicative licensure for nurses practicing in multiple states is cumbersome and redundant for both nurses and states; and

            (6)    Uniformity of nurse licensure requirements throughout the states promotes public safety

and public health benefits.

    (b) The general purposes of this compact are to:

            (1)    Facilitate the states' responsibility to protect the public's health and safety;

            (2)    Ensure and encourage the cooperation of party states in the areas of nurse licensure and regulation;

            (3)    Facilitate the exchange of information between party states in the areas of nurse regulation, investigation, and adverse actions;

            (4)    Promote compliance with the laws governing the practice of nursing in each jurisdiction;

            (5)    Invest all party states with the authority to hold a nurse accountable for meeting all state practice laws in the state in which the patient is located at the time care is rendered through the mutual recognition of party state licenses;

            (6)    Decrease redundancies in the consideration and issuance of nurse licenses; and

            (7)    Provide opportunities for interstate practice by nurses who meet uniform licensure requirements.

ARTICLE II

Definitions

    As used in this Compact:

            (a)    "Adverse action, " means any administrative, civil, equitable, or criminal action permitted by a state's laws which is imposed by a licensing board or other authority against a nurse, including actions against an individual's license or multistate licensure privilege such as revocation, suspension, probation, monitoring of the licensee, limitation on the licensee's practice, or any other encumbrance on licensure affecting a nurse's authorization to practice, including issuance of a cease and desist action.

            (b)    "Alternative program," means a nondisciplinary monitoring program approved by a licensing board.

            (c)    "Coordinated licensure information system," means an integrated process for collecting, storing, and sharing information on nurse licensure and enforcement activities related to nurse licensure laws that is administered by a nonprofit organization composed of and controlled by licensing bodies.

            (d)    "Current significant investigative information," means:

            (1)    Investigative information that a licensing board, after a preliminary inquiry that includes notification and an opportunity for the nurse to respond, if required by state law, has reason to believe is not groundless and, if proved true, would indicate more than a minor infraction; or

            (2)    Investigative information that indicates that the nurse represents an immediate threat to public health and safety regardless of whether the nurse has been notified and had an opportunity to respond.

            (e)    "Encumbrance," means a revocation or suspension of, or any limitation on, the full and

unrestricted practice of nursing imposed by a licensing board.

            (f)    "Home state," means the party state which is the nurse's primary state of residence.

            (g)    "Licensing board," means a party state's regulatory body responsible for issuing nurse licenses.

            (h)    "Multistate license," means a license to practice as a registered or a licensed practical/vocational nurse (LPN/VN) issued by a home state licensing board that authorizes the licensed nurse to practice in all party states under a multistate licensure privilege.

            (i)    "Multistate licensure privilege," means a legal authorization associated with a multistate license permitting the practice of nursing as either a registered nurse (RN) or LPN/VN in a remote state.

            (j)    "Nurse," means RN or LPN/VN, as those terms are defined by each party state's practice laws.

            (k)    "Party state," means any state that has adopted this compact.

            (l)    "Remote state," means a party state, other than the home state.

            (m)    "Single-state license," means a nurse license issued by a party state that authorizes practice only within the issuing state and does not include a multistate licensure privilege to practice in any other party state.

            (n)    "State," means a state, territory, or possession of the United States and the District of Columbia.

            (o)    "State practice laws," means a party state's laws, rules, and regulations that govern the practice of nursing, define the scope of nursing practice, and create the methods and grounds for imposing discipline. State practice laws do not include requirements necessary to obtain and retain a license, except for qualifications or requirements of the home state.

ARTICLE III

General Provisions and Jurisdiction

    (a) A multistate license to practice registered or licensed practical/vocational nursing issued by a home state to a resident in that state will be recognized by each party state as authorizing a nurse to practice as a registered nurse (RN) or as a licensed practical/vocational nurse (LPN/VN), under a multistate licensure privilege, in each party state.

    (b) A state must implement procedures for considering the criminal history records of applicants for initial multistate license or licensure by endorsement. Such procedures shall include the submission of fingerprints or other biometric-based information by applicants for the purpose of obtaining an applicant's criminal history record information from the Federal Bureau of Investigation and the agency responsible for retaining the state's criminal records.

    (c) Each party state shall require the following for an applicant to obtain or retain a multistate license in the home state:

            (1)    Meets the home state's qualifications for licensure or renewal of licensure, as well as all other applicable state laws;

            (2)    (i)    Has graduated or is eligible to graduate from a licensing board-approved RN or LPN/VN prelicensure education program; or

            (ii)    Has graduated from a foreign RN or LPN/VN prelicensure education program that (a) has been approved by the authorized accrediting body in the applicable country and (b) has been verified by an independent credentials review agency to be comparable to a licensing board-approved prelicensure education program;

            (3)    Has, if a graduate of a foreign prelicensure education program not taught in English or if English is not the individual's native language, successfully passed an English proficiency examination that includes the components of reading, speaking, writing, and listening;

            (4)    Has successfully passed an NCLEX-RN® or NCLEX-PN® Examination or recognized predecessor, as applicable;

            (5)    Is eligible for or holds an active, unencumbered license;

            (6)    Has submitted, in connection with an application for initial licensure or licensure by endorsement, fingerprints or other biometric data for the purpose of obtaining criminal history record information from the Federal Bureau of Investigation and the agency responsible for retaining that state's criminal records;

            (7)    Has not been convicted or found guilty, or has entered into an agreed disposition, of a felony offense under applicable state or federal criminal law;

            (8)    Has not been convicted or found guilty, or has entered into an agreed disposition, of a misdemeanor offense related to the practice of nursing as determined on a case-by-base basis;

            (9)    Is not currently enrolled in an alternative program;

            (10)    Is subject to self-disclosure requirements regarding current participation in an alternative program; and

            (11)    Has a valid United States social security number.

    (d) All party states shall be authorized, in accordance with existing state due process law, to take adverse action against a nurse's multistate licensure privilege such as revocation, suspension, probation or any other action that affects a nurse's authorization to practice under a multistate licensure privilege, including cease and desist actions. If a party state takes such action, it shall promptly notify the administrator of the coordinated licensure information system. The administrator of the coordinated licensure information system shall promptly notify the home state of any such actions by remote states.

    (e) A nurse practicing in a party state must comply with the state practice laws of the state in which the client is located at the time service is provided. The practice of nursing is not limited to patient care, but shall include all nursing practice as defined by the state practice laws of the party state in which the client is located. The practice of nursing in a party state under a multistate licensure privilege will subject a nurse to the jurisdiction of the licensing board, the courts and the laws of the party state in which the client is located at the time the service is provided.

    (f) Individuals not residing in a party state shall continue to be able to apply for a party state's single-state license as provided under the laws of each party state. However, the single-state license granted to these individuals will not be recognized as granting the privilege to practice nursing in any other party state. Nothing in this compact shall affect the requirements established by a party state for the issuance of a single-state license.

    (g) Any nurse holding a home state multistate license, on the effective date of this compact may retain and renew the multistate license issued by the nurse's then-current home state, provided that:

            (1)    A nurse, who changes primary state of residence after this compact's effective date, must meet all applicable Article III(c) requirements to obtain a multistate license from a new home state; and

            (2)    A nurse who fails to satisfy the multistate licensure requirements in Article III(c) due to a disqualifying event occurring after this compact's effective date shall be ineligible to retain or renew a multistate license, and the nurse's multistate license shall be revoked or deactivated in accordance with applicable rules adopted by the Interstate Commission of Nurse Licensure Compact Administrators (commission).

ARTICLE IV

Application for Licensure in a Party State

    (a) Upon application for a multistate license, the licensing board in the issuing party state shall ascertain, through the coordinated licensure information system, whether the applicant has ever held, or is the holder of, a license issued by any other state, whether there are any encumbrances on any license or multistate licensure privilege held by the applicant, whether any adverse action has been taken against any license or multistate licensure privilege held by the applicant and whether the applicant is currently participating in an alternative program.

    (b) A nurse may hold a multistate license, issued by the home state, in only one party state at a time.

    (c) If a nurse changes primary state of residence by moving between two party states, the nurse must apply for licensure in the new home state, and the multistate license issued by the prior home state will be deactivated in accordance with applicable rules adopted by the commission.

            (1)    The nurse may apply for licensure in advance of a change in primary state of residence.

            (2)    A multistate license shall not be issued by the new home state until the nurse provides satisfactory evidence of a change in primary state of residence to the new home state and satisfies all applicable requirements to obtain a multistate license from the new home state.

    (d) If a nurse changes primary state of residence by moving from a party state to a nonparty state, the multistate license issued by the prior home state will convert to a single-state license, valid only in the former home state.

ARTICLE V

Additional Authorities Invested in Party State Licensing Boards

    (a) In addition to the other powers conferred by state law, a licensing board shall have the authority to:

            (1)    Take adverse action against a nurse's multistate licensure privilege to practice within that party state;

            (i)    Only the home state shall have the power to take adverse action against a nurse's license issued by the home state;

            (ii)    For purposes of taking adverse action, the home state licensing board shall give the

same priority and effect to reported conduct received from a remote state as it would if such conduct had occurred within the home state. In so doing, the home state shall apply its own state laws to determine appropriate action;

            (2)    Issue cease and desist orders or impose an encumbrance on a nurse's authority to practice within that party state;

            (3)    Complete any pending investigations of a nurse who changes primary state of residence during the course of such investigations. The licensing board shall also have the authority to take appropriate action and shall promptly report the conclusions of such investigations to the administrator of the coordinated licensure information system. The administrator of the coordinated licensure information system shall promptly notify the home state of any such actions;

            (4)    Issue subpoenas for both hearings and investigations that require the attendance and testimony of witnesses, as well as the production of evidence. Subpoenas issued by a licensing board in a party state for the attendance and testimony of witnesses or the production of evidence from another party state shall be enforced in the latter state by any court of competent jurisdiction, according to the practice and procedure of that court applicable to subpoenas issued in proceedings pending before it. The issuing authority shall pay any witness fees, travel expenses, mileage, and other fees required by the service statutes of the state in which the witnesses or evidence are located;

            (5)    Obtain and submit, for each nurse licensure applicant, fingerprint or other biometric-based information to the Federal Bureau of Investigation for criminal background checks, receive the results of the Federal Bureau of Investigation record search on criminal background checks and use the results in making licensure decisions;

            (6)    If otherwise permitted by state law, recover from the affected nurse the costs of investigation and disposition of cases resulting from any adverse action taken against that nurse;

            (7)    Take adverse action based on the factual findings of the remote state, provided that the licensing board follows its own procedures for taking such adverse action.

    (b) If adverse action is taken by the home state against a nurse's multistate license, the nurse's multistate licensure privilege to practice in all other party states shall be deactivated until all encumbrances have been removed from the multistate license. All home state disciplinary orders that impose adverse action against a nurse's multistate license shall include a statement that the nurse's multistate licensure privilege is deactivated in all party states during the pendency of the order.

    (c) Nothing in this compact shall override a party state's decision that participation in an alternative program may be used in lieu of adverse action. The home state licensing board shall deactivate the multistate licensure privilege under the multistate license of any nurse for the duration of the nurse's participation in an alternative program.

ARTICLE VI

Coordinated Licensure Information System and Exchange of Information

    (a) All party states shall participate in a coordinated licensure information system of all licensed registered nurses (RNs) and licensed practical/vocational nurses (LPNs/VNs). This system will include information on the licensure and disciplinary history of each nurse, as submitted by party states, to assist in the coordination of nurse licensure and enforcement efforts.

    (b) The commission, in consultation with the administrator of the coordinated licensure

information system, shall formulate necessary and proper procedures for the identification, collection, and exchange of information under this compact.

    (c) All licensing boards shall promptly report to the coordinated licensure information system any adverse action, any current significant investigative information, denials of applications, with the reasons for such denials, and nurse participation in alternative programs known to the licensing board regardless of whether such participation is deemed nonpublic or confidential under state law.

    (d) Current significant investigative information and participation in nonpublic or confidential alternative programs shall be transmitted through the coordinated licensure information system only to party state licensing boards.

    (e) Notwithstanding any other provision of law, all party state licensing boards contributing information to the coordinated licensure information system may designate information that may not be shared with nonparty states or disclosed to other entities or individuals without the express permission of the contributing state.

    (f) Any personally identifiable information obtained from the coordinated licensure information system by a party state licensing board shall not be shared with nonparty states or disclosed to other entities or individuals except to the extent permitted by the laws of the party state contributing the information.

    (g) Any information contributed to the coordinated licensure information system that is subsequently required to be expunged by the laws of the party state contributing that information shall also be expunged from the coordinated licensure information system.

    (h) The compact administrator of each party state shall furnish a uniform data set to the compact administrator of each other party state, which shall include, at a minimum:

            (1)    Identifying information;

            (2)    Licensure data;

            (3)    Information related to alternative program participation; and

            (4)    Other information that may facilitate the administration of this compact, as determined by commission rules.

    (i)The compact administrator of a party state shall provide all investigative documents and information required by another party state.

ARTICLE VII

Establishment of the Interstate Commission of Nurse Licensure Compact Administration

    (a) The party states hereby create and establish a joint public entity known as the Interstate Commission of Nurse Licensure Compact Administrators.

            (1)    The commission is an instrumentality of the party states.

            (2)    Venue is proper, and judicial proceedings by or against the commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the commission is located. The commission may waive venue and jurisdictional defenses to the extent it adopts or consents to participate in alternative dispute resolution proceedings.

            (3)    Nothing in this compact shall be construed to be a waiver of sovereign immunity.

    (b) Membership, voting, and meetings:

            (1)    Each party state shall have and be limited to one administrator. The head of the state licensing board or designee shall be the administrator of this compact for each party state. Any administrator may be removed or suspended from office as provided by the law of the state from which the administrator is appointed. Any vacancy occurring in the commission shall be filled in accordance with the laws of the party state in which the vacancy exists.

            (2)    Each administrator shall be entitled to one vote with regard to the promulgation of rules and creation of bylaws and shall otherwise have an opportunity to participate in the business and affairs of the commission. An administrator shall vote in person or by such other means as provided in the bylaws. The bylaws may provide for an administrator's participation in meetings by telephone or other means of communication.

            (3)    The commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the bylaws or rules of the commission.

            (4)    All meetings shall be open to the public and public notice of meetings shall be given in the same manner as required under the rulemaking provisions in Article VIII.

            (5)    The commission may convene in a closed, nonpublic meeting if the commission must discuss:

            (i)    Noncompliance of a party state with its obligations under this compact;

            (ii)    The employment, compensation, discipline, or other personnel matters, practices or procedures related to specific employees or other matters related to the commission's internal personnel practices and procedures;

            (iii)    Current, threatened, or reasonably anticipated litigation;

            (iv)    Negotiation of contracts for the purchase or sale of goods, services, or real estate;

            (v)    Accusing any person of a crime or formally censuring any person;

            (vi)    Disclosure of trade secrets or commercial or financial information that is privileged or confidential;

            (vii)    Disclosure of information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

            (viii)    Disclosure of investigatory records compiled for law enforcement purposes;

            (ix)    Disclosure of information related to any reports prepared by or on behalf of the commission for the purpose of investigation of compliance with this compact; or

            (x)    Matters specifically exempted from disclosure by federal or state statute.

            (6)    If a meeting, or portion of a meeting, is closed pursuant to this provision, the commission's legal counsel or designee shall certify that the meeting may be closed and shall reference each relevant exempting provision. The commission shall keep minutes that fully and clearly describe all matters discussed in a meeting and shall provide a full and accurate summary of actions taken, and the reasons therefore, including a description

of the views expressed. All documents considered in connection with an action shall be identified in such minutes. All minutes and documents of a closed meeting shall remain under seal, subject to release by a majority vote of the commission or order of a court of competent jurisdiction.

    (c) The commission shall, by a majority vote of the administrators, prescribe bylaws or rules to govern its conduct as may be necessary or appropriate to carry out the purposes and exercise the powers of this compact, including but not limited to:

            (1)    Establishing the fiscal year of the commission;

            (2)    Providing reasonable standards and procedures;

            (i)    For the establishment and meetings of other committees; and

            (ii)    Governing any general or specific delegation of any authority or function of the commission;

            (3)    Providing reasonable procedures for calling and conducting meetings of the commission, ensuring reasonable advance notice of all meetings and providing an opportunity for attendance of such meetings by interested parties, with enumerated exceptions designed to protect the public's interest, the privacy of individuals, and proprietary information, including trade secrets. The commission may meet in closed session only after a majority of the administrators vote to close a meeting in whole or in part. As soon as practicable, the commission must make public a copy of the vote to close the meeting revealing the vote of each administrator, with no proxy votes allowed;

            (4)    Establishing the titles, duties, and authority and reasonable procedures for the election of the officers of the commission;

            (5)    Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the commission. Notwithstanding any civil services or other similar laws of any party state, the bylaws shall exclusively govern the personnel policies and programs of the commission; and

            (6)    Providing a mechanism for winding up the operations of the commission and the equitable disposition of any surplus funds that may exist after the termination of this compact after the payment or reserving of all of its debts and obligation.

    (d) The commission shall publish its bylaws and rules, and any amendments thereto, in a convenient form on the website of the commission.

    (e) The commission shall maintain its financial records in accordance with the bylaws.

    (f) The commission shall meet and take such actions as are consistent with the provisions of this compact and the bylaws.

    (g) The commission shall have the following powers:

            (1)    To promulgate uniform rules to facilitate and coordinate implementation and administration of this compact. The rules shall have the force and effect of law and shall be binding in all party states;

            (2)    To bring and prosecute legal proceedings or actions in the name of the commission, provided that the standing of any licensing board to sue or be sued under applicable law shall not be affected;

            (3)    To purchase and maintain insurance and bonds;

            (4)    To borrow, accept, or contract for services of personnel, including, but not limited to, employees of a party state or nonprofit organizations;

            (5)    To cooperate with other organizations that administer state compacts related to the regulation of nursing, including but not limited to sharing administrative or staff expenses, office space, or other resources;

            (6)    To hire employees, elect or appoint officers, fix compensation, define duties, grant such individuals appropriate authority to carry out the purposes of this compact, and to establish the commission's personnel policies and programs relating to conflicts of interest, qualifications of personnel, and other related personnel matters;

            (7)    To accept any and all appropriate donations, grants and gifts of money, equipment, supplies, materials and services, and to receive, utilize, and dispose of the same, provided that at all times the commission shall avoid any appearance of impropriety or conflict of interest;

            (8)    To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, improve, or use, any property, whether real, personal or mixed, provided that at all times the commission shall avoid any appearance of impropriety;

            (9)    To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, whether real, personal, or mixed;

            (10)    To establish a budget and make expenditures;

            (11)    To borrow money;

            (12)    To appoint committees, including advisory committees comprised of administrators, state nursing regulators, state legislators or their representatives, consumer representatives, and other such interested parties;

            (13)    To provide and receive information from, and to cooperate with, law enforcement agencies;

            (14)    To adopt and use an official seal; and

            (15)    To perform such other functions as may be necessary or appropriate to achieve the purposes of this compact consistent with the state regulation of nurse licensure and practice.

    (h) Financing of the commission:

            (1)    The commission shall pay, or provide for the payment of, the reasonable expenses of its establishment, organization, and ongoing activities.

            (2)    The commission may also levy on and collect an annual assessment from each party state to cover the cost of its operation, activities, and staff in its annual budget as approved each year. The aggregate annual assessment amount, if any, shall be allocated based upon a formula to be determined by the commission, which shall promulgate a rule that is binding upon all party states.

            (3)    The commission shall not incur obligations of any kind prior to securing the funds to adequately meet the same, nor shall the commission pledge the credit of any of the party

states, except by, and with the authority of, such party state.

            (4)    The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the commission.

    (i) Qualified immunity, defense, and indemnification:

            (1)    The administrators, officers, executive director, employees, and representatives of the commission shall be immune from suit and liability, either personally or in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error, or omission that occurred, or that the person against whom the claim is made had a reasonable basis for believing occurred, within the scope of commission employment, duties, or responsibilities, provided that nothing in this paragraph shall be construed to protect any such person from suit or liability for any damage, loss, injury, or liability caused by the intentional, willful, or wanton misconduct of that person.

            (2)    The commission shall defend any administrator, officer, executive director, employee, or representative of the commission in any civil action seeking to impose liability arising out of any actual or alleged act, error, or omission that occurred within the scope of commission employment, duties, or responsibilities, or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of commission employment, duties, or responsibilities, provided that nothing herein shall be construed to prohibit that person from retaining his or her own counsel, and provided further that the actual or alleged act, error, or omission did not result from that person's intentional, willful, or wanton misconduct.

            (3)    The commission shall indemnify and hold harmless any administrator, officer, executive director, employee, or representative of the commission for the amount of any settlement or judgement obtained against that person arising out of any actual or alleged act, error, or omission that occurred within the scope of commission employment, duties, or responsibilities, or that such person had a reasonable basis for believing occurred within the scope of commission employment, duties, or responsibilities, provided that the actual or alleged act, error, or omission did not result from the intentional, willful, or wanton misconduct of that person.

ARTICLE VIII

Rulemaking

    (a) The commission shall exercise its rulemaking powers pursuant to the criteria set forth in this Article and the rules adopted thereunder. Rules and amendments shall become binding as of the date specified in each rule or amendment and shall have the same force and effect as provisions of this compact.

    (b) Rules or amendments to the rules shall be adopted at a regular or special meeting of the commission.

    (c) Prior to promulgation and adoption of a final rule or rules by the commission, and at least sixty days in advance of the meeting at which the rule will be considered and voted upon, the commission shall file a notice of proposed rulemaking:

            (1)    On the website of the commission; and

            (2)    On the website of each licensing board or the publication in which each state would otherwise publish proposed rules.

    (d) The notice of proposed rulemaking shall include:

            (1)    The proposed time, date, and location of the meeting in which the rule will be considered and voted upon;

            (2)    The text of the proposed rule or amendment and the reason for the proposed rule;

            (3)    A request for comments on the proposed rule from any interested person; and

            (4)    The manner in which interested persons may submit notice to the commission of their intention to attend the public hearing and any written comments.

    (e) Prior to adoption of a proposed rule, the commission shall allow persons to submit written data, facts, opinions, and arguments, which shall be made available to the public.

    (f) The commission shall grant an opportunity for a public hearing before it adopts a rule or amendment.

    (g) The commission shall publish the place, time, and date of the scheduled public hearing.

            (1)    Hearings shall be conducted in a manner providing each person who wishes to comment a fair and reasonable opportunity to comment orally or in writing. All hearings will be recorded, and a copy will be made available upon request.

            (2)    Nothing in this section shall be construed as requiring a separate hearing on each rule. Rules may be grouped for the convenience of the commission at hearings required by this section.

    (h) If no one appears at the public hearing, the commission may proceed with promulgation of the proposed rules.

    (i) Following the scheduled hearing date, or by the close of business on the scheduled hearing date if the hearing was not held, the commission shall consider all written and oral comments received.

    (j)The commission shall, by majority vote of all administrators, take final action on the proposed rule and shall determine the effective date of the rule, if any, based on the rule-making record and the full text of the rule.

    (k) Upon determination that an emergency exists, the commission may consider and adopt an emergency rule without prior notice, opportunity for comment, or hearing, provided that the usual rule-making procedures provided in this compact and in this section shall be retroactively applied to the rule as soon as reasonably possible, in no event later than ninety days after the effective date of the rule. For the purpose of this provision, an emergency rule is one that must be adopted immediately in order to:

            (1)    Meet an imminent threat to public health, safety, or welfare;

            (2)    Prevent a loss of commission or party state funds; or

            (3)    Meet a deadline for the promulgation of an administrative rule that is required by federal

law or rule.

    (l) The commission may direct revisions to a previously adopted rule or amendment for purposes of correcting typographical errors, errors in format, errors in consistency, or grammatical errors. Public notice of any revisions shall be posted on the website of the commission. The revision shall be subject to challenge by any person for a period of thirty days after posting. The revision may be challenged only on grounds that the revision results in a material change to a rule. A challenge shall be made in writing, and delivered to the commission prior to the end of the notice period. If no challenge is made, the revision will take effect without further action. If the revision is challenged, the revision may not take effect without the approval of the commission.

ARTICLE IX

Oversight, Dispute Resolution, and Enforcement

    (a) Oversight:

            (1)    Each party state shall enforce this compact and take all actions necessary and appropriate to effectuate this compact's purposes and intent.

            (2)    The commission shall be entitled to receive service of process in any proceeding that may affect the powers, responsibilities, or actions of the commission, and shall have standing to intervene in such a proceeding for all purposes. Failure to provide service of process in such proceedings to the commission shall render a judgement or order void as to the commission, this compact, or promulgated rules.

    (b) Default, technical assistance, and termination:

            (1)    If the commission determines that a party state has defaulted in the performance of its obligations or responsibilities under this compact or the promulgated rules, the commission shall:

            (i)    Provide written notice to the defaulting state and other party states of the nature of the default, the proposed means of curing the default, or any other action to be taken by the commission; and

            (ii)    Provide remedial training and specific technical assistance regarding the default.

            (2)    If a state in default fails to cure the default, the defaulting state's membership in this compact may be terminated upon an affirmative vote of a majority of the administrators, and all rights, privileges, and benefits conferred by this compact may be terminated on the effective date of termination. A cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of default.

            (3)    Termination of membership in this compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to suspend or terminate shall be given by the commission to the Governor of the defaulting state and to the executive officer of the defaulting state's licensing board and each of the party states.

            (4)    A state whose membership in this compact has been terminated is responsible for all assessments, obligations, and liabilities incurred through the effective date of termination, including obligations that extend beyond the effective date of termination.

            (5)    The commission shall not bear any costs related to a state that is found to be in default or whose membership in this compact has been terminated unless agreed upon in writing between the commission and the defaulting state.

            (6)    The defaulting state may appeal the action of the commission by petitioning the U.S. District Court for the District of Columbia or the federal district in which the commission has its principal offices. The prevailing party shall be awarded all costs of such litigation, including reasonable attorneys' fees.

    (c) Dispute resolution:

            (1)    Upon request by a party state, the commission shall attempt to resolve disputes related to the compact that arise among party states and between party and nonparty states.

            (2)    The commission shall promulgate a rule providing for both mediation and binding dispute resolution for disputes, as appropriate.

            (3)    In the event the commission cannot resolve disputes among party states arising under this compact:

            (i)    The party states may submit the issues in dispute to an arbitration panel, which will be comprised of individuals appointed by the compact administrator in each of the affected party states and an individual mutually agreed upon by the compact administrators of all the party states involved in the dispute.

            (ii)    The decision of a majority of the arbitrators shall be final and binding.

    (d) Enforcement:

            (1)    The commission, in the reasonable exercise of its discretion, shall enforce the provisions and rules of this compact.

            (2)    By majority vote, the commission may initiate legal action in the U.S. District Court for the District of Columbia or the federal district in which the commission has its principal offices against a party state that is in default to enforce compliance with the provisions of this compact and its promulgated rules and bylaws. The relief sought may include both injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing party shall be awarded the costs of such litigation, including reasonable attorneys' fees.

            (3)    The remedies herein shall not be the exclusive remedies of the commission. The commission may pursue any other remedies available under federal or state law.

ARTICLE X

Effective Date, Withdrawal, and Amendment

    (a) This compact shall become effective and binding on the earlier of the date of legislative enactment of this compact into law by no less than twenty-six states or December 31, 2018. All party states to this compact that were parties to the prior Nurse Licensure Compact, superseded by this compact (prior compact), shall be deemed to have withdrawn from said prior compact within six months after the effective date of this compact.

    (b) Each party state to this compact shall continue to recognize a nurse's multistate licensure privilege to practice in that party state issued under the prior compact until such party state has withdrawn from the prior compact.

    (c) Any party state may withdraw from this compact by enacting a statute repealing the same. A party state's withdrawal shall not take effect until six months after enactment of the repealing statute.

    (d) A party state's withdrawal or termination shall not affect the continuing requirement of the withdrawing or terminated state's licensing board to report adverse actions and significant investigations occurring prior to the effective date of such withdrawal or termination.

    (e) Nothing contained in this compact shall be construed to invalidate or prevent any nurse licensure agreement or other cooperative arrangement between a party state and a nonparty state that is made in accordance with the other provisions of this compact.

    (f) This compact may be amended by the party states. No amendment to this compact shall become effective and binding upon the party state unless and until it is enacted into the laws of all party states.

    (g) Representatives of nonparty states to this compact shall be invited to participate in the activities of the commission, on a nonvoting basis, prior to the adoption of this compact by all states.

ARTICLE XI

Construction and Severability

    This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable, and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the Constitution of any party state or of the United States, or if the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government agency, person, or circumstance shall not be affected thereby. If this compact shall be held to be contrary to the Constitution of any party state, this compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the party state affected as to all severable matters.

    Section 43. That chapter 36-9 be amended by adding a NEW SECTION to read:

    No state general funds shall be used to support the Nurse Licensure Compact.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\195.wpd
CHAPTER 195

(SB 41)

Board of Technical Professions, authority revised.


        ENTITLED, An Act to revise certain provisions related to the Board of Technical Professions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-18A-4 be amended to read:

    36-18A-4. For the purposes of this chapter, the term, practice of land surveying, means the practice or offering to practice professional services such as consultation, investigation, testimony evaluation, expert technical testimony, land-use studies, planning, mapping, assembling, interpreting reliable scientific measurements and information relative to the location, size, shape, or physical features of the earth, improvements on the earth, the space above the earth, or any part of the earth, and utilization and development of these facts and interpretation into an orderly survey map, plan, report, description, or project.



    The practice of land surveying includes any of the following:

            (1)    Locates, relocates, establishes, reestablishes, lays out, or retraces any property line or boundary of any tract of land or any road, right-of-way, easement, alignment, or elevation of any of the fixed works embraced within the practice of land surveying;

            (2)    Makes any survey for the subdivision of any tract of land;

            (3)    Determines, by the use of principles of land surveying, the position for any survey monument or reference point; or sets, resets, or replaces any such monument or reference point;

            (4)    Determines the configuration or contour of the earth's surface or the position of fixed objects on the earth's surface by measuring lines and angles and applying the principles of mathematics;

            (5)    Geodetic surveying which includes surveying for determination of the size and shape of the earth utilizing angular and linear measurements through spatially oriented spherical geometry; or

            (6)    Creates, prepares, or modifies electronic or computerized data, including land formation systems and geographic information systems, relative to the performance of the activities in subdivisions (1) to (5), inclusive, of this section.

    Section 2. That § 36-18A-5 be amended to read:

    36-18A-5. For the purposes of this chapter, the term, practice of landscape architecture, means the practice or offering to practice landscape architecture projects, including preparing preliminary studies, providing land-use studies, developing design concepts, giving expert technical testimony, planning for the relationships of physical improvements and intended uses of the site, establishing form and aesthetic elements, analyzing and providing for life safety requirements, developing those construction details on the site which are exclusive of any building or structure and do not require the seal of an engineer or architect, preparing and coordinating technical submissions, and conducting site observation of landscape architecture projects.

    Landscape architecture, for the purposes of landscape preservation, development, and enhancement, includes: investigation, selection, and allocation of land and water resources for appropriate use; feasibility studies; formulation of graphic and written criteria to govern the planning and design of land construction programs; preparation, review, and analysis of master plans for land use and development; production of overall site plans, landscape grading and landscape drainage plans, irrigation plans, planting plans, and construction details; specifications; cost estimates and reports for land development; collaboration in design of roads, bridges, and structures with respect to the functional and aesthetic requirements of the areas on which they are to be placed; negotiation and arrangement for execution of land area projects; field observation and inspection of land area construction, restoration, and maintenance.

    Section 3. That § 36-18A-9 be amended to read:

    36-18A-9. This chapter does not apply to:

            (1)    Any person engaged in military engineering while rendering service exclusively for any of the armed forces of the United States or this state;

            (2)    Any person engaged in the practice of professional engineer or engineering, architecture, landscape architecture, or land surveying in the employ of the United States government but only while exclusively engaged as a United States government employee on such

government project or projects which lie within federally-owned land;

            (3)    Any person engaged in the practice of professional engineering, architecture, landscape architecture, or land surveying in the employ of the state and any of its political subdivisions but only while rendering service exclusively to such employer. Any building project resulting from the practice of professional engineering, architecture, landscape architecture, or land surveying under this subdivision is subject to the size limitation imposed under the exemptions in subdivision (8) of this section;

            (4)    Any employee who prepares technical submissions or administers construction contracts for a person or organization lawfully engaged in the practice of engineering, architecture, landscape architecture, or land surveying, if the employee is under the direct supervision of a registered professional engineer, architect, landscape architect, or land surveyor;

            (5)    Any full-time employee of a corporation, partnership, firm, business entity, or public utility while exclusively doing work for the corporation, partnership, firm, business entity, or public utility, if the work performed is in connection with the property, products, and services utilized by the employer and not for any corporation, partnership, firm, or business entity practicing or offering to practice architectural, engineering, landscape architecture, or land surveying services to the public. The provisions of this subdivision do not apply to any building or structure if the primary use is occupancy by the public;

            (6)    Any person engaged in the preparation of plans and specifications for the erection, enlargement, or alteration of any of the following buildings:

            (a)    Any dwelling for a single family, and any outbuilding in connection therewith, such as a barn or private garage;

            (b)    Any two, three, or four family dwelling;

            (c)    Any five to sixteen family dwelling, inclusive, located in a governmental subdivision of this state which provides a detailed building code review of building projects by a building inspection department which is a Class A member of the International Conference of Building Officials governmental member of the International Code Council (ICC) or an ICC certified plans examiner;

            (d)    Any farm or ranch building or accessory thereto except any building regularly used for public purposes; or

            (e)    Any temporary building or shed used exclusively for construction purposes, not exceeding two stories in height, and not used for living quarters;

            (7)    Any person who prepares detailed or shop plans required to be furnished by a contractor to a registered professional engineer or architect, and any construction superintendent supervising the execution of work designed by an architect or professional engineer registered in accordance with this chapter;

            (8)    Any person engaged in the preparation of plans and specifications for the new construction, the enlargement or the alteration of any of the following buildings:

            (a)    Any building occupied as a hospital, hotel, motel, restaurant, library, medical office, nursing facility, assisted living facility, jail, retirement home, or mortuary, if the gross square footage of the new construction, the enlargement, or the alteration is four thousand square feet or less;

            (b)    Any building occupied as an auditorium, church, school, or theater if the gross

square footage of the new construction, the enlargement, or the alteration is five thousand square feet or less;

            (c)    Any building occupied as a bowling alley, office, shopping center, bank, fire station, service station, or store if the gross square footage of the new construction, the enlargement, or the alteration is seven thousand square feet or less;

            (d)    Any building occupied as an industrial plant or public garage if the gross square footage of the new construction, the enlargement, or the alteration is eleven thousand square feet or less;

            (e)    Any building occupied as a warehouse if the gross square footage of the new construction, the enlargement, or the alteration is twenty thousand square feet or less;

            (f)    Any building with an occupancy other than those listed in subsections (a) to (e), inclusive, of this subdivision if the gross square footage of the new construction, the enlargement, or the alteration is four thousand square feet of less; or

            (g)    Any preengineered or predesigned building, or any preengineered or predesigned building with a predesigned system, designed for the intended use of that building, including building structure, electrical, plumbing, and mechanical systems, if the buildings and systems are supplied directly, or indirectly, by a company engaged in the business of designing and supply such buildings and systems and if the company has in its employ one or more engineers or architects licensed in South Dakota, who prepare all designs for such buildings and systems.

    No person exempted may use the title of professional engineer, architect, landscape architect, or land surveyor, or any other word, words, letters, or signs in connection with the person's name that may falsely convey the impression that the person is a licensed professional engineer, architect, landscape architect, or land surveyor.

    Section 4. That § 36-18A-37 be amended to read:

    36-18A-37. The license shall be displayed in a conspicuous place in the licensee's principal office, place of business, or place of employment within the state. A new duplicate license to replace a lost, destroyed, or mutilated license shall be issued upon payment of a fee established by the board pursuant to chapter 1-26.

    Section 5. That § 36-18A-46 be amended to read:

    36-18A-46. No person other than an architect or professional engineer may provide architectural and engineering services which include construction administration services on projects that are not exempt pursuant to §§ 36-18A-2 and 36-18A-3 may provide construction administration services on an architecture portion of a project that is not exempt pursuant to § 36-18A-2. No person other than a professional engineer may provide construction administration services on an engineering portion of a project that is not exempt pursuant to § 36-18A-3. The architect or professional engineer of record, or another designated architect or professional engineer without conflict of interest, shall provide a written report of observed deficiencies or variations from the submitted plans and specifications to the building official, owner, and builder before project completion. The board may promulgate rules pursuant to chapter 1-26 to establish construction administration services criteria including coordinating and prime professional criteria for persons licensed by the board.

    Section 6. That § 36-18A-46.1 be amended to read:

    36-18A-46.1. If determined by the board that a licensee in responsible charge of the work is

unavailable to complete the work, a successor licensee may take responsible charge by performing all professional services to include developing a complete design file with work or design criteria, calculations, code research, and any necessary and appropriate changes to the work. The nonprofessional services, such as drafting, need not be redone by the successor licensee but shall clearly and accurately reflect the successor licensee's work. The burden is on the successor licensee to show compliance. The successor licensee shall sign, date, and seal all original documents. The successor licensee shall have control of and responsibility for the work product and the signed and sealed originals of all documents.

     Signed February 8, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\196.wpd
CHAPTER 196

(SB 40)

Board of Technical Professions,
signature and seal requirements changed.


        ENTITLED, An Act to revise signature and seal requirements for the Board of Technical Professions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-18A-44 be amended to read:

    36-18A-44. Any licensed professional engineer, architect, land surveyor, and landscape architect shall procure and use an appropriate seal. The seal shall contain the following information:

            (1)    The name, South Dakota;

            (2)    Licensee's name;

            (3)    License number; and

            (4)    The appropriate title or combination of titles: Professional Engineer, Architect, Land Surveyor, Landscape Architect.

    The seal shall be legible and shall have an outer circle with a two-inch diameter measuring at least one inch and no greater than two inches and an inner circle with a one and one-fourth inch diameter measuring five-eighths of the diameter of the outer circle. Titles may be prefixed with the words, Licensed or Registered. The seal may be an embossed seal, a rubber stamp, a computer-generated seal, or other facsimile found acceptable to the board. The licensee's original written signature and the date shall be adjacent to or across the seal. Petroleum release assessors and remediators, or interns, may not obtain or use any a seal.

    Section 2. That § 36-18A-45 be amended to read:

    36-18A-45. The application of the licensee's seal and signature and the date constitutes certification that the work on which it was applied was done by the licensee or under the licensee's responsible charge. The seal, signature, and date shall be placed in such a manner that can be legibly reproduced on the following:

            (1)    All originals, copies, tracings, electronic submittals, or other reproducibles reproductions

of all final drawings, specifications, reports, plats, plans, land surveys, design information, and calculations prepared by the licensee or under the licensee's responsible charge when presented to a client or any public or governmental agency. A licensee may not review or check technical submissions of another licensed professional or unlicensed person and seal the documents as the licensee's own work;

            (2)    Preliminary work shall contain a note that the submittal is Not for Construction, Preliminary, or other such explanation that it is not final; and

            (3)    In the case of multiple seals documents for projects which involve multiple licensees of more than one technical profession, the title or index sheet may shall be sealed, signed, and dated by all involved the prime professional in responsible charge of coordinating the various technical professions involved in the project. In addition, each sheet shall be sealed, signed, and dated by the licensee or licensees who prepared or who are in responsible for charge of that sheet;

            (4)    Drawings that are transmitted electronically to a client or governmental agency shall have the computer-generated seal removed from the original file. The electronic media shall have the following inserted in lieu of the seal, signature, and date: This document originally issued and sealed by (name of licensee/sealer), (title), (license number), on (date of sealing). This media should not be considered a certified document;

            (5)    Drawings, reports, or documents that are signed and sealed using a digital method shall have an electronic authentication process attached to or logically associated with the electronic documents. The digital signature shall be:

            (a)    Unique to the person using it;

            (b)    Capable of verification;

            (c)    Under the sole control of the person using it; and

            (d)    Linked to a document in such a manner that the digital signature is invalidated if any data in the document is changed.

    Section 3. That § 36-18A-45.1 be amended to read:

    36-18A-45.1. Each drawing, report, or document that is signed and sealed using a digital signature shall have an electronic authentication process attached to or logically associated with the electronic document. The licensee's use of a digital signature is optional and, if used, shall be:

            (1)    Unique to the licensee;

            (2)    Capable of verification;

            (3)    Under the sole control of the licensee using it; and

            (4)    Linked to a document in such a manner that the digital signature is invalidated if any data in the document is changed.

    A digital signature that uses a process approved by the board is presumed to meet the criteria set forth in subdivision 36-18A-45(5) provided in this section. Any hard copy printed from the transmitted electronic file shall bear the facsimile of the signature and seal and shall be a confirmation that the electronic file was not altered after the initial digital signing of the file. Any
alterations to the file shall cause the facsimile of the signature to be voided.

     Signed February 8, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\197.wpd
CHAPTER 197

(HB 1027)

Massage therapists' licensure revised.


        ENTITLED, An Act to revise certain provisions regarding licensure of massage therapists.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-35-1 be amended to read:

    36-35-1. Terms in this chapter mean:

            (1)    "Board," the Board of Massage Therapy;

            (2)    "Licensee," a person who meets the qualifications for licensure pursuant to this chapter and holds a valid license to practice massage therapy;

            (3)    "Massage," the systematic mobilization of the soft tissues of the body through the application of hands, feet, or devices for the purposes of therapy, relaxation, or education through means which include:

            (a)    Pressure, friction, stroking, rocking, kneading, percussion, compression, or stretching;

            (b)    External application of water, heat, cold, lubricants, or other topical agents; or

            (c)    The use of devices that mimic or enhance the actions done by of human hands or feet; and

            (3)(4)    "Practice of massage therapy," the performance of massage for a fee or other compensation or holding oneself out to the public as performing massage.

    Section 2. That § 36-35-2 be amended to read:

    36-35-2. The board consists of five members appointed by the Governor. The terms of the initial members of the board shall be staggered by the drawing of lots with three of the initial members serving a term of three years, two of the initial members serving a term of two years, and one of the initial members serving a term of one year. Any subsequent term on the term of a board member is three years. One member of the board shall be a person not licensed by the board. Four members of the board shall be persons licensed by the board. The Governor shall fill any vacancy by appointment to complete the unexpired portion of that member's term the vacancy. No person may serve more than three consecutive full terms on the board. The appointment to an unexpired term is not considered a full term.

    The terms of members begin on October thirty-first of the calendar year in which the Governor appoints the member, unless otherwise designated by the Governor. The appointee's term expires on October thirtieth in the third year of appointment.

    Any member's term ending June 30, 2013, or thereafter is extended to October thirtieth in the year the term is to expire.

    Section 3. That § 36-35-4 be amended to read:

    36-35-4. The board shall select annually elect from its members a president, vice-president, and secretary at its annual meeting. The board may hire an executive secretary to perform any managerial, clerical, or other duties directed by the board.

    Section 4. That § 36-35-5 be amended to read:

    36-35-5. The board shall hold an annual meeting at least two meetings per year at a place and time set by the board. The board may hold special additional meetings at a time and place set by the president or a majority of the board by giving written notice to the board prior to the meeting.

    Section 5. That § 36-35-8 be amended to read:

    36-35-8. Any person engaged in the practice of massage in this state shall conspicuously display a valid license from the board in the person's licensee's regular place of business. If the licensee is providing massage therapy outside of the licensee's regular place of business, the licensee shall, upon request, produce photo identification and proof of licensure. Failure to comply with this section is a petty offense.

    Section 6. That § 36-35-10 be amended to read:

    36-35-10. Any person who engages in the practice of massage or holds himself or herself out to the public as engaged in the practice of massage without a license issued pursuant to this chapter, or owns, operates or manages a business which knowingly employs or contracts with any unlicensed person to offer or provide massage therapy, is guilty of a Class 1 misdemeanor. The board may file bring a civil action to enjoin any person engaging in the practice of massage without a license violation of this chapter.

    Section 7. That § 36-35-12.1 be amended to read:

    36-35-12.1. Upon application and payment of a an application fee not to exceed seventy-five dollars, the board may issue a temporary permit to practice as a licensed massage therapist massage therapy to an applicant who has met the requirements of subdivision 36-35-12(1) to (4), inclusive, pending completion and results of the examination required pursuant to subdivision 36-35-12(5), if the applicant intends to practice massage therapy in the state during the time the permit is valid. A temporary license permit may be issued no more than twice and is effective for a term of not more than one hundred eighty ninety days. A temporary license permit automatically expires on the occurrence of the following:

            (1)    Issuance of a regular license;

            (2)    Failure to pass the licensing examination; or

            (3)    Expiration of the term for which the temporary license was issued.

    Section 8. That § 36-35-12.2 be repealed.

    Section 9. That § 36-35-12.3 be amended to read:

    36-35-12.3. Unless automatically issued pursuant to this section, a A license issued under this chapter is valid until September thirtieth following the date it is issued and automatically expires unless it is renewed.



    Section 10. That § 36-35-13 be amended to read:

    36-35-13. For the purposes of this chapter, any of the following acts constitute unprofessional conduct:

            (1)    Conviction of or a plea of guilty to any felony, any crime involving or relating to the practice of massage, or any crime involving dishonesty or moral turpitude;

            (2)    Providing the board false or misleading information on any application for a license or renewal of a license;

            (3)    Willful misconduct or negligence in the practice of massage;

            (4)    Exceeding the scope of practice of massage as defined in § 36-35-1;

            (5)    Engaging in any lewd or immoral conduct;

            (6)    Making fraudulent charges for services;

            (7)    Engaging in conduct which endangers the health or welfare of clients or other persons; or

            (8)    Failure to comply with any provision of this chapter; or

            (9)    Engaging in any act that aids, abets, facilitates, or promotes a violation of this chapter.

    Section 11. That § 36-35-14 be repealed.

    Section 12. That § 36-35-15 be amended to read:

    36-35-15. Any person holding a valid license or registration to practice massage from another state whose requirements for licensure or registration are not less restrictive than this state is exempted from the requirement for any examination for licensure by § 36-35-12. Any person applying for a license under this section shall submit an application as required by § 36-35-12 along with proof of a current license. Notwithstanding the provisions of § 36-35-12, the board may issue a license to an applicant licensed to practice massage therapy in another state if the applicant demonstrates the following qualifications:

            (1)    Eighteen years of age or older;

            (2)    Absence of unprofessional conduct;

            (3)    Professional liability insurance pursuant to § 36-35-21;

            (4)    Verification from the authority that issued the applicant's license indicating the applicant is in good standing and currently licensed to practice; and

            (5)    Experience and competency in massage indicated by education that substantially complies with subdivision 36-35-12(2) or verification of an active massage therapy practice in the state of licensure in the two years immediately preceding the date of application for licensure.

    For the purpose of this section, the term, active massage therapy practice, means the applicant has had at least two hundred hours of patient contact in the preceding two-year period.

    Section 13. That § 36-35-16 be amended to read:



    36-35-16. Any person licensee holding a valid license under this chapter may renew that license by making application for renewal, paying the required renewal fee, and providing proof of compliance with the continuing education requirements set by the board. If the board has not received a license renewal application by the expiration date, the board shall notify the licensee within five days that the renewal application has not been received and that the licensee may not practice until the license is renewed. Any person who submits a license renewal application and provides proof of compliance with the continuing education requirements set by the board within thirty days after the expiration date shall may be granted a license renewal.

    Section 14. That § 36-35-18.1 be amended to read:

    36-35-18.1. The board may issue an inactive massage therapist place a massage therapy license on inactive status upon submission of an application and payment of the application fee.

    Section 15. That § 36-35-20 be amended to read:

    36-35-20. The board shall may receive and may investigate any complaint filed with the board alleging that any licensed massage therapist has violated the requirements a violation of this chapter. The board may inspect the place of business of any person with a license issued pursuant to this chapter the licensee named in a complaint pursuant to this section during normal business hours or upon written notice.

    Section 16. That § 36-35-22 be amended to read:

    36-35-22. The board may cancel, suspend, or revoke a license following a contested case hearing in compliance with chapter 1-26 upon satisfactory proof of incompetence, unprofessional conduct, or a violation of any provision of this chapter. The board may waive the requirement of prior notice and an informal meeting set forth in § 1-26-29 if the licensee presents an immediate threat to the public or has engaged in willful misconduct. Any person licensee may appeal the cancellation, suspension, or revocation of a license in compliance with chapter 1-26.

    Section 17. That § 36-35-24 be amended to read:

    36-35-24. The board may promulgate rules pursuant to chapter 1-26 in the following areas to establish:

            (1)    The form and information required for any license application;

            (2)    A list of recognized facilities or instructors who may provide training or instruction required for licensure or continuing education requirements;

            (3)    The amount of license fees;

            (4)    The procedures for conducting disciplinary proceedings;

            (5)    The procedures for conducting complaint investigations;

            (6)    The procedures for applying for an inactive placing a license on inactive status and the procedures to regain active licensure; and

            (7)(5)    Approval of national competency examinations.

    Section 18. That § 36-35-25 be amended to read:

    36-35-25. The provisions of this chapter do not apply to any person performing massage for compensation if the massage is done under one of the following circumstances:



            (1)    As part of a licensed practice as a physician, physician assistant, chiropractor, nurse, physical therapist, athletic trainer, or other health care profession licensed or certified under Title title 36;

            (2)    As part of a licensed practice pursuant to chapter 36-14 or 36-15, if the licensee is performing within the scope of the licensed practice and the licensee does not hold himself or herself out to be a massage therapist or to be engaged in the practice of massage therapy;

            (3)    In furtherance of duties as an employee of the United States;

            (4)    As part of a course of study with a facility or instructor recognized and approved by the board to provide training in massage or the provision of such instruction;

            (5)    As part of providing a course of instruction or continuing education by a licensed massage therapist from another state or provider preapproved by the board, in the practice of massage therapy on a temporary basis not in excess of ten days per calendar year; or

            (6)    Manipulation of the soft tissues of the human body is restricted to the hands, feet, or ears and the person does not hold himself or herself out to be a massage therapist or to be engaged in the practice of massage therapy.

    Section 19. That chapter 36-35 be amended by adding a NEW SECTION to read:

    The board may:

            (1)    Administer, coordinate, and enforce the provisions of this chapter;

            (2)    Evaluate the qualifications of applicants for licensure and permits and issue and renew licenses and permits;

            (3)    Maintain the names of persons that meet the qualifications for licensure;

            (4)    Conduct all disciplinary proceedings under this chapter;

            (5)    Maintain a record of each complaint received by the board;

            (6)    Establish standards for the safe and qualified practice of massage therapy;

            (7)    Report licensing actions and status to relevant state and federal governing bodies as may be required, or as the board deems appropriate; and

            (8)    Employ or contract with personnel and enter into contracts pursuant to law to carry out the board's responsibilities.

     Signed February 18, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\197.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\198.wpd
CHAPTER 198

(HB 1069)

Genetic counselor licensure.


        ENTITLED, An Act to revise certain provisions related to genetic counselor licensure.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 36-36-1 be amended to read:

    36-36-1. Terms used in this chapter mean:

            (1)    "ABGC," the American Board of Genetic Counseling;

            (2)    "ABMG," the American Board of Medical Genetics "ABMGG," the American Board of Medical Genetics and Genomics;

            (3)    "ACGC," the Accreditation Council for Genetic Counseling;

            (4)    "Board," The South Dakota Board of Medical and Osteopathic Examiners;

            (4)(5)    "Genetic counselor," a person licensed under this chapter to engage in the practice of genetic counseling;

            (5)(6)    "Referral," a written or telecommunicated authorization for genetic counseling services from a licensed physician or a licensed certified nurse midwife, licensed certified nurse practitioner, licensed clinical nurse specialist, or a licensed physician assistant, who has an agreement and signed protocols with a licensed physician who authorizes referrals to a genetic counselor; and

            (6)(7)    "Supervision," the ongoing direct clinical review, for the purposes of training or teaching, by a supervisor approved by the board who monitors the performance or a person's supervised interaction with a client and provides regular documented face-to-face consultation, guidance, and instructions with respect to the clinical skills and competencies of the person supervised. This supervision may be by personal contact or indirect contact by telecommunication.

    Section 2. That § 36-36-2 be amended to read:

    36-36-2. For the purposes of this chapter, genetic counseling is a communication process, conducted by appropriately trained persons that includes:

            (1)    Assisting a person, the person's family, a health care provider, or the public with comprehending the issues inherent to genetic counseling. Such The assistance may include the following:

            (a)    Appreciating the medical, psychological, and social implications of a disorder including features, variability, usual course, and management options;

            (b)    Learning how genetic factors contribute to the disorder and affect the chance for recurrence of the condition in other family members;

            (c)    Understanding available options for coping with, preventing, or reducing the chance of occurrence or recurrence of a condition;

            (d)    Selecting the most appropriate, accurate, and cost-effective methods of diagnosis, including the ordering of genetic tests consistent with the referral and reporting requirements of this chapter; or

            (e)    Understanding genetic tests, including diagnostic genetic tests, screening tests, or predispositional genetic tests, coordinating testing for inherited disorders, and interpreting complex genetic test results;

            (2)    Assessing the likelihood of the occurrence or recurrence of an abnormality in the fetus in structure, function, or metabolism or of any potentially inherited or genetically influenced condition. Such The assessment may include the following:

            (a)    Obtaining and analyzing a complete health history of a person and the person's family;

            (b)    Reviewing pertinent medical records;

            (c)    Evaluating the risks from exposure to possible mutagens or teratogens; or

            (d)    Discussing Ordering genetic testing or other evaluations, consistent with the referral and reporting requirements of this chapter, to diagnose a condition or determine the carrier status of one or more family members; and

            (3)    Facilitating an individual's or family's:

            (a)    Exploration of the perception of risk and burden associated with a genetic disorder;

            (b)    Decision-making regarding testing or medical interventions consistent with the individual's or family's beliefs, goals, needs, resources, or cultural, ethical, or moral views; and

            (c)    Adjustment and adaptation to the condition or the genetic risk by addressing needs for psychological, social, and medical support.

    Section 3. That § 36-36-3 be amended to read:

    36-36-3. For the purposes of this chapter, the practice of genetic counseling is the process of helping people understand and adapt to the medical, psychological, and familial implications of genetic contributions to disease performed pursuant to a referral. This process integrates the following:

            (1)    Interpretation of family and medical histories to assess the chance of disease occurrence or recurrence;

            (2)    Education about inheritance, testing, management, prevention, resources, and research; and

            (3)    Ordering genetic testing consistent with the referral and reporting requirements of this chapter; and

            (4)    Counseling to promote informed decisions and adaptation to the risk or condition.

    Section 4. That § 36-36-5 be amended to read:

    36-36-5. Any person desiring to engage in the practice of genetic counseling in this state shall apply to the board for a license and pay the license fee. The application shall contain such the information as the board may require. The license fee shall be established by the board by rules promulgated pursuant to chapter 1-26. The license fee may not exceed two hundred dollars. The board may grant a license to any applicant who gives satisfactory proof of being of at least eighteen years of age and who is of good moral character and also fulfills the following requirements:

            (1)    Education at one of the following levels:

            (a)    Master's degree from a genetic counseling training program that is accredited by the ABGC ACGC and approved by the board; or

            (b)    Doctoral degree from a medical genetics training program that is accredited by the ABMG ABMGG and approved by the board; and

            (2)    Successful completion of all requirements of the certification examination within a period not to exceed four years from initial examination to successful completion and with no more than two attempts.

    Section 5. That § 36-36-7 be amended to read:

    36-36-7. No licensed genetic counselor may provide genetic counseling to individuals, couples, groups, or families without a documented referral from a physician, certified nurse midwife, licensed certified nurse practitioner, licensed clinical nurse specialist, or a licensed physician assistant. The licensed physician, certified nurse midwife, licensed certified nurse practitioner, licensed clinical nurse specialist, or licensed physician assistant shall maintain supervision of the patient, including the regular review of orders of genetic tests. The licensed genetic counselor shall submit reports to the physician, certified nurse midwife, licensed certified nurse practitioner, licensed clinical nurse specialist, or licensed physician assistant on any services provided, including genetic testing. No genetic testing may be provided unless ordered by a licensed genetic counselor, physician, certified nurse midwife, licensed certified nurse practitioner, licensed clinical nurse specialist, or licensed physician assistant.

    Section 6. That § 36-36-9 be amended to read:

    36-36-9. The board may issue a temporary license to an applicant who has paid the temporary license fee, meets all the qualifications for licensure as established in § 36-36-5 with the exception of certification by the ABMG ABMGG or ABGC, and has submitted evidence to the board that the applicant is a candidate accepted to write the examination or is awaiting the results of the first examination for which the applicant is eligible after graduation from an approved genetic counseling program. The board shall establish a temporary license fee by rules promulgated pursuant to chapter 1-26. The temporary license fee may not exceed one hundred dollars. A temporary licensee shall take the next available examination. If any temporary licensee fails the first sitting of ABGC or ABMG ABMGG certification examination or the temporary license expires, then he or she the applicant may reapply for a second temporary license. A temporary license may not be issued if the applicant has failed the ABGC or ABMG ABMGG certification examination more than twice. A temporary license expires on the occurrence of the following:

            (1)    Issuance of a regular license;

            (2)    Failure to pass the board-approved examination; or

            (3)    Expiration of the term for which the temporary license was issued.

    Section 7. That § 36-36-10 be amended to read:

    36-36-10. Any licensee practicing pursuant to the authority of a temporary license shall practice under the supervision of a licensed genetic counselor or a physician approved by the board with current ABMG ABMGG certification in clinical genetics.

    Section 8. That § 36-36-11 be amended to read:

    36-36-11. Each license issued pursuant to this chapter shall be renewed annually on a date set by the board. The board shall renew a license upon payment of the renewal fee, submission of a renewal application in a form approved by the board, and evidence satisfactory to the board of the applicant's successful completion, within a three year period prior to the application for license renewal of five continuing education units or fifty contact hours. Any genetic counselor who maintains current certification by the ABGC or ABMG may document compliance with this requirement by providing proof of current certification by the ABGC or ABMG of continuing education requirements. The board shall establish the renewal fee by rules promulgated pursuant to chapter 1-26. The fee may not exceed one hundred dollars.

    Section 9. That § 36-36-12 be amended to read:

    36-36-12. The board shall promulgate rules pursuant to chapter 1-26 pertaining to fees, licensure, investigations, and disciplinary proceedings, and continuing education.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\198.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\199.wpd
CHAPTER 199

(HB 1141)

Licensing for persons
offering applied behavior analysis services to the public.


        ENTITLED, An Act to license persons offering applied behavior analysis services to the public.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Applied behavior analysis," as provided in subdivision 58-17-154(1);

            (2)    "Behavior analyst," a person who meets the qualifications of subdivision 58-17-159(2), who is licensed as a behavior analyst by the board only for the provision of applied behavior analysis as defined in sections 2 and 3 of this Act, and who holds himself or herself out to the public by any title or description of services which uses the words behavior analyst or applied behavior analyst;

            (3)    "Board," the Board of Social Work Examiners, as established in chapter 36-26.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    The term, practice of applied behavior analysis, is the application of principles, methods, and procedures of the analysis of behavior including principles of operant and respondent learning. The term includes applications of those principles, methods, and procedures to:

            (1)    Design, supervise, evaluate, and modify treatment programs to change the behavior of individuals diagnosed with an autism spectrum disorder;

            (2)    Design, supervise, evaluate, and modify treatment programs to change the behavior of individuals;

            (3)    Design, supervise, evaluate, and modify treatment programs to change the behavior of groups; and

            (4)    Consult with individuals and organizations.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    The term, practice of applied behavior analysis, does not include diagnosis, counseling, psychological testing, personality assessment, intellectual assessment, neuropsychological assessment, psychotherapy, cognitive therapy, sex therapy, family therapy, coordination of care, psychoanalysis, hypnotherapy, or long-term counseling as a treatment modality.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    The Governor shall appoint an applied behavior analyst advisory committee composed of three members. Two of the members shall be behavior analysts licensed under this Act and the other member shall represent the public and be unaffiliated with the profession.

    Each committee member shall serve a term of three years. However, the terms of the initial appointees shall be staggered so that no more than one member's term expires in any one year. No committee member may be appointed to more than three consecutive full terms. If a vacancy occurs, the Governor shall appoint a person to fill the unexpired term. The appointment of a member to an unexpired term is not considered a full term. The committee shall meet at least annually or as necessary to conduct business. The advisory committee shall assist the board in the regulation of behavior analysts pursuant to this Act. The committee shall also make recommendations to the board regarding rules promulgated pursuant to this Act.

    The terms of a member begins on October thirty-first of the calendar year in which the Governor appoints the member, unless otherwise designated by the Governor. The term of a member expires on October thirtieth in the third year of appointment.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The provisions of this Act do not apply to any:

            (1)    Employee of a regionally accredited academic institution while performing teaching, training, or research duties;

            (2)    Provider who is not a resident of this state, and who has established an office in this state, who provides behavior analyst services in this state for a period which does not exceed an aggregate of more than twenty days during any one year if the provider is authorized under the laws of the state or country of residence to perform these activities and services. If the provider exceeds twenty consecutive days of practice in this state in any calendar year the provider shall report to the board, in writing, the nature and extent of the provider's practice in this state;

            (3)    Qualified physician, surgeon, psychologist, dentist, osteopath, optometrist, chiropractor, podiatrist, registered nurse, attorney, court employee, marriage counselor, family counselor, member of the clergy, mental health counselor, school counselor, rehabilitation counselor, employment counselor, guidance counselor, social worker, or licensed

professional counselor doing work within the standards and ethics of the person's respective profession who does not hold himself or herself out to the public by any title incorporating the term behavior analyst;

            (4)    Matriculated college or university student whose applied behavior analysis activity is part of a defined program of study, course, practicum, internship, or postdoctoral traineeship, if the applied behavior analysis activities under this exemption are directly supervised by a behavior analyst in this state, an instructor in a course sequence approved by the certifying entity, or another qualified faculty member. The individual student may not represent himself or herself as a behavior analyst and shall use a title that clearly indicates the student's training status, such as student, intern, or trainee;

            (5)    Family member of a recipient of applied behavior analysis services implementing behavior analysis treatment plans with the recipient under the extended authority and direction of a behavior analyst. The family member may not represent himself or herself as a behavior analyst;

            (6)    Assistant behavior analyst or paraprofessional who delivers applied behavior analysis services under the extended authority and direction of a behavior analyst provided that the services are supervised in accordance with the requirements of the Behavior Analyst Certification Board, Inc. The assistant behavior analyst or paraprofessional may not represent himself or herself as a behavior analyst, and shall use a title that indicates assistant or paraprofessional status, such as an assistant behavior analyst, ABA technician, behavior technician, tutor, or line therapist. The assistant behavior analyst or paraprofessional shall submit to a criminal background check and fingerprint checks pursuant to the provisions of this Act;

            (7)    Behavior analyst who practices with nonhumans, including an applied animal behaviorist and animal trainer;

            (8)    Professional who provides general applied behavior analysis services to an organization, so long as the services are for the benefit of the organization and do not involve direct services to any person;

            (9)    Unlicensed person pursuing experience in applied behavior analysis consistent with the experience requirements of the Behavior Analyst Certification Board, Inc., if the experience is supervised in accordance with the requirements of the Behavior Analyst Certification Board, Inc. The person may not represent himself or herself as a behavior analyst and shall use a title that clearly indicates the person's training status, such as student, intern, or trainee;

            (10)    Person employed by a school board performing the duties of a position for the school. The person may not represent himself or herself as a behavior analyst, unless the person holds a license under this Act; or

            (11)    Any person who meets the requirements set out in subdivision 58-17-159(1).

    Section 6. That the code be amended by adding a NEW SECTION to read:

    No person may represent himself or herself as a behavior analyst, or engage in the practice of, or attempt to practice applied behavior analysis unless licensed pursuant to the provisions of this Act as an applied behavior analyst or exempted under the provisions of this Act.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    The board may grant a license as a behavior analyst to an applicant who:

            (1)    Has earned a master's degree or a doctoral degree;

            (2)    Holds a current certification as a board certified behavior analyst by the Behavior Analyst Certification Board, Inc., or any successor in interest to that organization;

            (3)    Has not been convicted of a felony or a misdemeanor involving moral turpitude as defined in subdivision 22-1-2(25) during the past five years; and

            (4)    Has submitted verification that the applicant is not subject to any disciplinary proceeding or pending complaint before any other licensing board unless the board considers such proceeding or complaint and agrees to licensure.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    The application fee for a license to practice applied behavior analysis shall be set by the board in rules promulgated pursuant to chapter 1-26. The fee may not exceed three hundred dollars. The applicant shall pay fees for the cost of certification directly to the Behavior Analyst Certification Board, Inc. No fee assessed on a licensed social worker may be increased to support the licensure of a behavior analyst as required under this Act.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    In applying for licensing, an applicant shall apply on a form prescribed by the board. The application shall be witnessed and notarized by a notary public. The license fee shall accompany the application. The application and all supporting evidence shall be public record as provided in chapter 1-27.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    After a behavior analyst applicant presents evidence of certification, the applicant shall pay a fee for initial licensure set by the board, in rules promulgated pursuant to chapter 1-26, not to exceed three hundred fifty dollars.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    The board shall adopt a code of ethics for behavior analysts licensed under this Act.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    The board may deny, revoke, suspend, or cancel any license or application for licensure to practice as a behavior analyst and may take other disciplinary or corrective action as the board deems appropriate upon any of the following grounds:

            (1)    The licensee or applicant is guilty of fraud in the practice of applied behavior analysis or fraud or deceit in the licensee's admission to practice applied behavior analysis;

            (2)    The licensee or applicant has been convicted of a felony or misdemeanor involving moral turpitude as defined in subdivision 22-1-2(25) during the past five years;

            (3)    The licensee or applicant is or has been engaged in the practice of applied behavior analysis under a false or assumed name and has not registered that name pursuant to chapter 37-11, or is impersonating another practitioner of a like or different name;

            (4)    The licensee or applicant is addicted to the use of intoxicating liquors, narcotics, or stimulants to an extent as to incapacitate the licensee or applicant from the performance of the licensee's or applicant's professional duties;

            (5)    The physical or mental condition of the licensee or applicant is determined, by a competent medical examiner, to jeopardize or endanger a person who seeks relief of the licensee or applicant. A majority of the entire board may demand an examination of the licensee or applicant by a competent medical examiner selected by the board at the board's expense. If the licensee or applicant fails to submit to the examination, this constitutes immediate grounds for suspension of the licensee's license or denial of the application for licensure;

            (6)    The licensee or applicant for licensure has been found in violation of the code of ethics adopted by the board;

            (7)    The licensee or applicant has obtained or attempted to obtain a license, certificate, or renewal thereof by bribery or fraudulent representation;

            (8)    The licensee or applicant knowingly made a false statement in connection with any application required by this Act;

            (9)    The licensee or applicant knowingly made a false statement on any form promulgated pursuant to this Act;

            (10)    The licensee or applicant has violated any provision of this Act or the rules promulgated under this Act; or

            (11)    The licensee's or applicant's certificate, license, or permit has been cancelled, revoked, suspended, or rejected for renewal in any other state for any cause.

    Section 13. That the code be amended by adding a NEW SECTION to read:

    If the board has information that any licensee may be guilty of any misconduct as provided in section 12 of this Act or is guilty of gross incompetence or unprofessional or dishonorable conduct, the board may institute proceedings for cancellation or revocation of the license.

    Section 14. That the code be amended by adding a NEW SECTION to read:

    Each proceeding relative to the cancellation, revocation, or suspension of a license, or relative to reissuing a license which has been cancelled, revoked, or suspended may only be held if a majority of the members of the board are present at the hearing. The decision of the board to suspend, revoke, or cancel a license requires a majority vote of all of the board members.

    Section 15. That the code be amended by adding a NEW SECTION to read:

    All proceedings relative to the cancellation, revocation, or suspension of a license shall conform to the procedure set forth in chapter 1-26.

    Section 16. That the code be amended by adding a NEW SECTION to read:

    Any party aggrieved by any acts, rulings, or decisions of the board relating to refusal to grant or to cancellation, revocation, or suspension of a license may appeal pursuant to chapter 1-26.

    Section 17. That the code be amended by adding a NEW SECTION to read:

    Upon written application establishing compliance with existing licensing requirements and for reasons the board deems sufficient, the board, for good cause by majority vote, may reinstate or reissue a license that has been canceled, suspended, or revoked. However, upon suspension of a license, the board in the order may provide for automatic reinstatement after a fixed period of time as provided in the order.

    Section 18. That the code be amended by adding a NEW SECTION to read:

    The secretary-treasurer of the board shall keep a record of each person who has been granted a license pursuant to the provisions of this Act, the license number, and the date the license was issued or renewed. The record may be admitted as evidence in any court.

    Section 19. That the code be amended by adding a NEW SECTION to read:

    Any person who practices as a behavior analyst in this state without a license issued by the board is guilty of a Class 2 misdemeanor.

    Section 20. That the code be amended by adding a NEW SECTION to read:

    In addition to the duties set forth elsewhere in this Act, the board shall:

            (1)    Recommend prosecution for any violation of this Act to the appropriate state's attorney; or

            (2)    Recommend to the attorney general the bringing of a civil action to seek injunction and other relief against any violation of this Act.

    Section 21. That the code be amended by adding a NEW SECTION to read:

    The board shall investigate each suspected violation of this Act and shall report the violation to the proper law enforcement official where the act is committed. The board is authorized to employ special counsel subject to the supervision, control, and direction of the attorney general to assist in the prosecution of violations of this Act, and to expend the necessary funds for such purpose.

    Section 22. That the code be amended by adding a NEW SECTION to read:

    Any person violating the provisions of this Act may be enjoined from further violations at the suit of the state's attorney of the county where the violations occurred or suit may be brought by any citizen of this state. An action for injunction shall be an alternate to criminal proceedings, and the commencement of one proceeding by the board constitutes an election.

    Section 23. That the code be amended by adding a NEW SECTION to read:

    Any money coming into the custody of the board pursuant to this Act shall be credited to the South Dakota Board of Social Work Examiners fund established under § 36-26-43.

    Section 24. That the code be amended by adding a NEW SECTION to read:

    The relations and communications between a licensed behavior analyst and a person consulting a licensed behavior analyst in the person's professional capacity are confidential. Nothing in this Act may be construed to require the person's confidential communications to be disclosed.

    Section 25. That the code be amended by adding a NEW SECTION to read:

    Any assistant behavior analyst or paraprofessional who delivers applied behavior analysis services under the extended authority and direction of a behavior analyst shall submit to a criminal background investigation, by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. If no disqualifying record is identified at the state level, the fingerprints shall be forwarded by the Division of Criminal Investigation to the Federal Bureau of Investigation for a national criminal history check. The behavior analyst who supervises the assistant behavior analyst or paraprofessional is responsible for any fees charged for the cost of fingerprinting or the criminal background investigation as required by this section. Each criminal record provided

to the board under this section is confidential. The board may use the records only in determining an assistant behavior analyst's or paraprofessional's eligibility to be supervised by an applied behavior analyst for the delivery of applied behavior analysis.

    Section 26. That the code be amended by adding a NEW SECTION to read:

    No assistant behavior analyst or paraprofessional who has been convicted of a felony or misdemeanor involving moral turpitude as defined in subdivision 22-1-2(25) during the past five years may deliver applied behavior analysis services under the direction of a behavior analyst.

    Section 27. That the code be amended by adding a NEW SECTION to read:

    The board may promulgate rules, pursuant to chapter 1-26, that delineate qualifications for licensure, specify requirements for the annual renewal of licensure, establish standards of professional conduct, specify procedures for violations of professional conduct, permit inactive licensures, establish procedures for collection and management of fees and payments, establish fees for initial applications and annual licensure not to exceed the amounts specified in this Act, delineate activities that may or may not be delegated to an assistant behavior analyst or paraprofessional, and specify requirements for supervision of assistant behavior analysts and paraprofessionals.

    Section 28. This Act is repealed on July 1, 2024.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\199.wpd

AGRICULTURE AND HORTICULTURE

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\200.wpd
CHAPTER 200

(HB 1018)

Commercial fertilizer revisions.


        ENTITLED, An Act to define certain terms related to commercial fertilizer and soil amendments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 38-19-1 be amended to read:

    38-19-1. Terms, as used in this chapter, mean:

            (1)    "Available phosphoric acid," the sum of the water-soluble and the citrate-soluble phosphoric acid and reported as phosphorus pentoxide;

            (2)    "Brand," a term, design, or trademark used in connection with one or several grades of commercial fertilizer;

            (3)    "Bulk commercial fertilizer," any volume of a commercial fertilizer which is transported or held for resale in an immediate reusable container in undivided quantities greater than one hundred pounds net dry weight or fifty-five U.S. gallons liquid measure;

            (4)    "Bulk commercial fertilizer storage facility," any area, location, tract of land, building, structure, or premises constructed in accordance with rules promulgated by the secretary for the storage of bulk commercial fertilizer;

            (5)    "Commercial fertilizer," any substance, including manipulated manure, containing any recognized plant nutrient which is used for its plant nutrient content and which is designed for use or claimed to have value in promoting plant growth, except unmanipulated animal and vegetable manures, marl, lime, limestone, lime sludge, sewage sludge, wood ashes, gypsum, compost, and other products excluded by rule;

            (5A)    "Compost," a group of organic residues or a mixture of organic residues and soil that have been piled, moistened, and allowed to undergo aerobic biological decomposition;

            (6)    "Distribute," to import, consign, manufacture, produce, compound, mix, or blend commercial fertilizer, or to offer for sale, sell, barter, or otherwise supply commercial fertilizer in this state;

            (7)    "Distributor," any person who distributes commercial fertilizer in this state;

            (8)    "Fertilizer material," a commercial fertilizer which either:

            (a)    Contains important quantities of no more than one of the primary plant nutrients: nitrogen, phosphoric acid, and potash; or

            (b)    Has approximately eighty-five percent of its plant nutrient content present in the form of a single chemical compound; or

            (c)    Is derived from a plant or animal residue or by-product or a natural material deposit which has been processed in such a way that its content of primary plant nutrients has not been materially changed except by purification and concentration;

            (9)    "Grade," the percentage of total nitrogen, available phosphoric acid, and soluble potash stated in whole numbers in the same terms, order, and percentages as in the guaranteed analysis. However, speciality fertilizers may be guaranteed in fractional units of less than one percent of total nitrogen, available phosphoric acid, and soluble potash. Fertilizer materials, bone meal, manures, and similar raw materials may be guaranteed in fractional units;

            (10)    "Investigational allowance," allowance for variations inherent in the taking, preparation, and analysis of an official sample of commercial fertilizer;

            (11)    "Label," a display of written, printed, or graphic matter on or attached to the immediate container of any article and the outside container or wrapper of the retail package, or a statement or document accompanying a commercial fertilizer;

            (12)    "Labeling," all written, printed, or graphic matter, upon or accompanying any commercial fertilizer or advertisements, brochures, posters, television, and radio announcements used in promoting the sale of commercial fertilizer;

            (13)    "Licensee," any person who receives a license to distribute a commercial fertilizer under the provisions of this chapter;

            (13A)    "Manipulated manure," any animal or vegetable manure collected or stored in a manner consistent with practices commonly implemented in agricultural production that has been subjected to practices including composting, mechanical dewatering, or pelletizing or altered in any way to change chemical, physical, or biological characteristics;

            (14)    "Metric ton," a net weight of one thousand kilograms;

            (15)    "Mixed fertilizer," a commercial fertilizer containing any combination or mixture of fertilizer materials;

            (16)    "Nitrogen," the element of nitrogen;

            (17)    "Official sample," any sample of commercial fertilizer taken by the secretary of agriculture or department agent according to methods prescribed by this chapter;

            (18)    "Percent" or "percentage," the percentage by weight;

            (19)    "Primary nutrients," nitrogen, available phosphoric acid, and soluble potash;

            (20)    "Recognized plant nutrients," primary nutrients, secondary nutrients, and micro nutrients;

            (21)    Deleted by SL 2001, ch 215, § 7;

            (22)    "Secondary and micro nutrients," those nutrients other than primary nutrients that are essential for the normal growth of plants and that may need to be added to the growth medium. Secondary plant nutrients include calcium, magnesium, and sulfur; micro plant nutrients include boron, chlorine, cobalt, copper, iron, manganese, molybdenum, sodium, and zinc;

            (23)    "Secretary," the secretary of the Department of Agriculture;

            (24)    "Sell:"

            (a)    The act of selling, transferring ownership;

            (b)    The offering and exposing for sale, exchange, or distribution;

            (c)    Giving away; or

            (d)    Receiving, accepting, holding or possession for sale, exchange, or distribution;

            (25)    "Sewage sludge," "sludge," "biosolids," any solid, semisolid, or liquid residue removed during the treatment of municipal or domestic sewage by publicly-owned treatment works regulated under 40 CFR Part 503, as amended to January 1, 1995, and the Clean Water Act as amended to January 1, 1995;

            (26)    "Soluble potash," that portion of the potash contained in fertilizers or fertilizer materials which is soluble in an aqueous ammoniacal solution of 0.8% ammonium oxalate, after boiling in a 1.14% solution of ammonium oxalate and reported as potassium oxide;

            (27)    "Ton," a net weight of two thousand pounds avoirdupois.

    Section 2. That § 38-19A-1 be amended to read:

    38-19A-1. Terms as used in this chapter, unless the context otherwise requires, shall mean:

            (1)    "Brand," any trademark, product name, or other specific designation under which any individual soil amendment is offered for sale;

            (2)    "Bulk," nonpackaged form;

            (3)    "Distributing," importing, consigning, manufacturing, producing, compounding, mixing or blending any soil amendment, or offering for sale, selling, bartering, or otherwise supplying any soil amendment in this state;

            (4)    "Distributor," any person who distributes any soil amendment in this state;

            (5)    "Investigational allowance," any allowance for variations inherent in the taking, preparation and analysis of an official sample of a soil amendment;

            (6)    "Label," any display of all written, printed, or graphic matter upon the immediate container or statement accompanying a soil amendment;

            (7)    "Labeling," any written, printed, or graphic matter, upon or accompanying any soil amendment, or advertisements, brochures, posters, or television or radio announcements used in promoting the sale of such soil amendment;

            (7A)    "Manipulated manure," any animal or vegetable manure collected or stored in a manner consistent with practices commonly implemented in agricultural production that has been subjected to practices including composting, mechanical dewatering, or pelletizing or altered in any way to change chemical, physical, or biological characteristics;

            (7B)    "Microbe," any microbiological organism or mixture of microbiological organisms intended to produce any physical, chemical, biochemical, biological, or other change in the soil;

            (8)    "Minimum percentage," that percentage of soil amendment ingredient that shall be present in a product before the product may be accepted for registration when distributed in any form or manner;

            (9)    "Official sample," any sample of a soil amendment taken by the secretary and so designated;

            (10)    "Percent," percentage by weight;

            (11)    "Registrant," any person who shall register any soil amendments under the provisions of this chapter;

            (12)    "Secretary," the secretary of the Department of Agriculture of the State of South Dakota;

            (13)    "Soil amending ingredient," any substance which will improve the physical, chemical, or other characteristic of the soil or improve crop production;

            (14)    "Soil amendment," any substance which is intended to improve the physical, chemical, or other characteristics of the soil or improve crop production, except the following: commercial fertilizer, unmanipulated animal manures, unmanipulated vegetable manures, pesticides, lime or lime sludge produced by a water treatment facility, sewage sludge, as defined in § 38-19-1, and compost as defined in § 38-19-1;

            (15)    "Soil ingredient form," any ingredient or the chemical compound of an ingredient;

            (16)    "Ton," two thousand pounds avoirdupois net weight;

            (17)    "Weight," the weight of that material offered for sale.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\200.wpd



Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\201.wpd
CHAPTER 201

(HB 1094)

Commercial fertilizer inspection fee increased
for fertilizer-related research.


        ENTITLED, An Act to increase the commercial fertilizer inspection fee for purposes of fertilizer-related research and education and to create the Nutrient Research and Education Council to promote such research and education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 38-19-10 be amended to read:

    38-19-10. There is paid Each licensed distributor of commercial fertilizer shall pay to the secretary of agriculture for all commercial fertilizer distributed in this state an inspection fee of up to twenty-five cents per ton in accordance with the provisions of § 38-19-12, not to exceed seventy-five cents per ton. The secretary of agriculture shall promulgate rules pursuant to chapter 1-26 to establish the inspection fee.

    Section 2. That ARSD 12:44:06:01 be amended to read:

    12:44:06:01. Commercial fertilizer tonnage inspection fee. The commercial fertilizer tonnage inspection fee is fifteen sixty-five cents a ton, except the fee is five fifty-five cents a ton on products that are made up entirely of manipulated animal manure.

    Section 3. That § 38-19-14 be amended to read:

    38-19-14. Fees collected pursuant to this chapter shall be deposited with the state treasurer in a special revenue fund known as the fertilizer fund. This fund shall consist of moneys from public and private sources including legislative appropriations, federal grants, gifts, and the fees received pursuant to this chapter. The fund shall be maintained separately and be administered by the department in order to defray the expenses of all activities associated with administering the fertilizer program and to provide funding for fertilizer-related, nutrient-related, and water quality-related research and education-related purposes as provided in section 4 of this Act. Expenditures from the fund shall be appropriated through the normal budget process. Unexpended funds and interest shall remain in the fund until appropriated by the Legislature.

    Section 4. That chapter 38-19 be amended by adding a NEW SECTION to read:

    From each fee collected pursuant to § 38-19-10, fifty cents shall be deposited into the nutrient research and education fund created in section 7 of this Act. The nutrient and education fund shall be disbursed as follows:

            (1)    The Agriculture Experiment Station may use an amount not to exceed five percent of the revenue deposited in the fund for administrative expenses necessary to carry out the functions of this Act;

            (2)    The balance of the fund shall be used for fertilizer-related, nutrient-related, and water quality-related research and education purposes in conjunction with the Nutrient Research and Education Council; and

            (3)    Beginning in fiscal year 2020, a minimum of ten percent of the fund shall be used to support water quality projects.

    Section 5. That chapter 38-19 be amended by adding a NEW SECTION to read:

    The Nutrient Research and Education Council is hereby established. The council shall consist of nine voting members, including three representing the fertilizer industry, two representing grower organizations, one representing the state's largest commodity organization, one representing the specialty fertilizer industry, one representing the certified agronomy association, and one farmer member of the State Conservation Commission. The council shall also include five nonvoting members: two representing environmental organizations, one representing the director of the South Dakota Agricultural Experiment Station, one representing the secretary of the Department of Agriculture, and one representing the secretary of the Department of Environment and Natural Resources. The certified agronomy association and any association or organization representing the fertilizer industry, growers, and the environment may submit nominations to the secretary of agriculture for their respective members. The secretary shall select from these nominations the members of the council. Members of the council may receive no compensation, but members may be reimbursed for travel and subsistence expense in accordance with rules promulgated by the State Board of Finance. The council shall meet at least twice each year. The council shall be administered under the direction and supervision of the South Dakota Agricultural Experiment Station, but retains the respective quasi-judicial, quasi-legislative, advisory, other nonadministrative and special budgetary functions as defined in § 1-32-1 otherwise vested in the council. The council shall exercise those functions independently of the South Dakota Agricultural Experiment Station.

    Section 6. That chapter 38-19 be amended by adding a NEW SECTION to read:

    The Nutrient Research and Education Council established in section 5 of this Act, acting in cooperation and conjunction with the South Dakota Agricultural Experiment Station, shall:

            (1)    Prioritize nutrient research, water quality research, and education proposals and solicit research proposals to generate findings and make recommendations to the council based on the findings;

            (2)    Evaluate the proposed budget for each research project and make recommendations as necessary;

            (3)    Arrange for peer review of all research proposals for scientific merit and methods;

            (4)    Disseminate the findings of all research projects to the appropriate agricultural sector in the manner deemed most effective; and

            (5)    Cooperate with other programs with similar goals, if practicable.

    The council shall publish an annual financial and activities report, including the amount of funds collected and expenditures for nutrient programs.

    Section 7. That chapter 38-19 be amended by adding a NEW SECTION to read:

    There is hereby created a nutrient research and education fund for the purpose of advancing fertilizer-related, nutrient-related, and water quality-related purposes as provided in section 4 of this Act. Any money in the nutrient research and education fund is continuously appropriated to the Agriculture Experiment Station. The state may accept and expend for the purposes of this Act funds obtained from appropriations or any other source. Interest earned on money in the fund shall be deposited into the fund. Any money deposited into and distributed from the fund shall be set forth in an informational budget as described in § 4-7-7.2.

     Signed March 16, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\201.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\202.wpd
CHAPTER 202

(SB 16)

Nursery inspection fees increased.


        ENTITLED, An Act to establish a fee for a nursery license and to increase fees for nursery inspection.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 38-24B-7 be amended to read:

    38-24B-7. The Department of Agriculture department may issue a certificate of inspection license to any nurseryman, operating as a resident nurseryman or dealer, whose nursery stock has been officially inspected and found to be viable and free from pests. The biennial annual fee for the inspection and certification license is as follows:

            (1)    Resident nurseryman: three hundred fifty dollars plus ten two hundred dollars for each acre over one acre of field-grown inspected plants and ten dollars for each ten thousand square feet of container-grown plants, except. However, the fee for a resident nurseryman with less than five thousand dollars in gross sales on nursery stock is seventy-five forty-two dollars plus ten dollars for each acre over one of field-grown inspected plants and ten dollars for each ten thousand square feet of container-grown plants and fifty cents;

            (2)    Nursery stock dealer with less than five thousand dollars annual gross sales of nursery stock: one hundred twenty-five seventy dollars;

            (3)    Nursery stock dealer with more than five thousand but less than twenty thousand dollars annual gross sales of nursery stock: two hundred one hundred fifteen dollars; or

            (4)    Nursery stock dealer with more than twenty thousand dollars annual gross sales of nursery stock: three hundred fifty two hundred dollars .

    Section 2. The department may issue a certificate of inspection to any nurseryman or dealer whose nursery stock has been officially inspected and found to be viable and free from pests. The inspection fee shall be two hundred and fifteen dollars per inspection.

    Section 3. That § 38-24B-5 be amended to read:

    38-24B-5. No person may sell, offer for sale, or distribute any nursery stock which has not been officially inspected and for which a certificate of inspection has not been granted until the person has obtained a license from the secretary. A violation of this section is a Class 2 misdemeanor.

    Section 4. That § 38-24B-6 be amended to read:

    38-24B-6. Any nurseryman desiring to sell or ship nursery stock in the state shall make application before the first day of March to the Department of Agriculture for inspection of his nursery stock, and anyone failing to comply with this section is liable for extra charges to cover travel expenses for the department for a license.

    Section 5. That § 38-24B-8 be amended to read:

    38-24B-8. A separate certificate of inspection license shall be obtained from the department for

each location before selling, offering, or exposing nursery stock for sale. The certificate of inspection license shall be displayed in a prominent manner wherever nursery stock is offered for sale. A violation of this section is a Class 2 misdemeanor.

    Section 6. That § 38-24B-11 be amended to read:

    38-24B-11. No certificate of inspection or license may be issued to an applicant who purchases his nursery stock from an uncertified nursery in this state or from a nonresident nursery or nursery stock dealer whose stock has not been inspected and certified by the regulatory official of the state of origin.

    Section 7. That § 38-24B-12 be amended to read:

    38-24B-12. Any grower or dealer of decorative plants, annual plants, sod, or related plant products may apply to the department for a certificate of inspection. The Department of Agriculture department may issue a certificate of inspection to the person whose decorative plants, annual plants, sod, or related plant products have been officially inspected and found free from pests. The fee for inspection and certification is two hundred fifty one hundred forty dollars plus five dollars for each acre of growing field and five dollars for each ten thousand square feet of growing greenhouse.

    Section 8. That § 38-24B-13 be amended to read:

    38-24B-13. The secretary of agriculture may revoke a certificate of inspection license for cause following a hearing pursuant to chapter 1-26. The secretary may issue a temporary cease and desist order pending the hearing. At least ten days notice shall be given prior to conducting a hearing pursuant to this section.

    Section 9. That § 38-24B-14 be amended to read:

    38-24B-14. A certificate license issued pursuant to the provisions of this chapter is in effect for a period not to exceed two years one year and expires on December thirty-first of the year following the date of issue.

    Section 10. That § 38-24B-29 be amended to read:

    38-24B-29. If a nurseryman violates the provisions of this chapter, he may have his certificate of inspection the nurseryman's license may be cancelled or revoked pursuant to chapter 1-26. In addition, any person is liable in a civil action for all damage that is occasioned or caused by a violation of this chapter.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\202.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\203.wpd
CHAPTER 203

(SB 17)

Appropriation to suppress wildfires.


        ENTITLED, An Act to make an appropriation for costs related to suppression of wildfires in the state and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of one million three hundred thousand dollars ($1,300,000), or so much thereof as may be necessary, to the state fire suppression special revenue fund for costs related to the suppression of wildfires in South Dakota.

    Section 2. The secretary of agriculture shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\203.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\204.wpd
CHAPTER 204

(HB 1080)

Appropriation to fund a design study
for the State Animal Disease Research and Diagnostic Laboratory.


        ENTITLED, An Act to make an appropriation and to transfer certain money to the Bureau of Administration to fund a design study for a potential expansion and upgrade to the State Animal Disease Research and Diagnostic Laboratory and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated the sum of one million five hundred seventy-five thousand dollars ($1,575,000), or so much thereof as may be necessary, in other fund expenditure authority to the Bureau of Administration to be used for a design study for a potential expansion and upgrade to the State Animal Disease Research and Diagnostic Laboratory.

    Section 2. Notwithstanding the provisions of § 40-15-38, the state treasurer shall transfer from the livestock disease emergency fund the sum of one million five hundred seventy-five thousand dollars to the Bureau of Administration.

    Section 3. The commissioner of the Bureau of Administration shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 4. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 5. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\204.wpd



ANIMALS AND LIVESTOCK

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\205.wpd
CHAPTER 205

(HB 1019)

Milk sampling, grading, and licensing.


        ENTITLED, An Act to revise certain provisions related to milk sampling and grading licenses and tester and grader licenses.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 40-32-13 be amended to read:

    40-32-13. Applications An application for a sampling and grading license shall be made on forms prescribed and provided by the secretary of agriculture. A fee of fifty dollars shall be submitted with the application. A license shall be issued to persons for sampling and grading of milk at a milk plant, or for the operator of a bulk tank truck picking up milk at the farm, upon satisfactory completion of that part of the an examination pertaining to sampling and grading, and upon receipt of the application and a fee of fifty dollars. These licenses and an evaluation of sampling methods. Each license shall be stamped, "For sampling and grading only." "Sampler Only" or "Bulk Hauler."

    Section 2. That § 40-32-14 be amended to read:

    40-32-14. After successful completion of the examination required by §§ 40-32-12 and 40-32-13, the secretary of agriculture shall issue a tester and grader's license which shall be valid for one year from date of issue, unless suspended or revoked. Should any applicant fail to qualify, the secretary shall refund three dollars of the fee advanced as license fee or sampling and grading license. Each license is valid for one year or any fraction thereof and terminated on July first of each year.

    Section 3. That § 40-32-15 be amended to read:

    40-32-15. The secretary of agriculture may withhold a tester and grader's license or a sampling and grading license from any applicant he may deem unworthy who does not meet the licensing requirements.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\205.wpd



GAME, FISH, PARKS, AND FORESTRY

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\206.wpd
CHAPTER 206

(HB 1010)

Department of Game, Fish and Parks
may make capital improvements.


        ENTITLED, An Act to revise certain provisions relating to the development of park and recreational improvements on lands leased to the Department of Game, Fish and Parks.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 41-2-25 be amended to read:

    41-2-25. The Department of Game, Fish and Parks shall may make capital improvements that the Game, Fish and Parks Commission deems necessary or proper for the extension, improvement, or development of state parks and recreation areas on all leased lands owned by the United States government and the State of South Dakota that the Game, Fish and Parks Commission deems necessary or proper for the extension, improvement, or development of state parks and recreation areas. However, the capital expenditures for such capital improvements on leased lands, other than those owned by the United States government or State of South Dakota, may not exceed the sum of one thousand five hundred dollars for any leased area upon which twenty-five years or less remain on the lease. No capital expenditures may be made on leased lands for the purposes of this title that lie within the boundaries of the Black Hills Fire Protection District. The authority provided in this section is in addition to the limits prescribed under § 5-14-10 land leased by the department. The provisions of § 5-14-10 do not apply to this section.

     Signed February 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\206.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\207.wpd
CHAPTER 207

(HB 1011)

Game preserve and refuges unnecessary statutes repealed.


        ENTITLED, An Act to repeal certain obsolete and unnecessary statutes concerning game preserves and refuges.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 41-5-5 be repealed.

    Section 2. That § 41-5-6 be repealed.

    Section 3. That § 41-5-7 be repealed.


    Section 4. That § 41-5-8 be repealed.

    Section 5. That § 41-5-9 be repealed.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\208.wpd
CHAPTER 208

(SB 71)

Veterans reduced fee hunting licenses.


        ENTITLED, An Act to revise the provisions regarding the issuance of small game licenses and fishing licenses to certain veterans at reduced fees and to revise certain provisions regarding special pheasant hunts for disabled veterans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 41-6-10.2 be amended to read:

    41-6-10.2. Any resident who meets the requirements of this section may apply to the licensing office of the Department of Game, Fish and Parks in Pierre and receive a resident small game license and a resident fishing license upon payment of a reduced fee to be established by the Game, Fish and Parks Commission in rules promulgated pursuant to chapter 1-26. A resident is eligible for the reduced fee if the resident:

            (1)    Receives a veterans allotment for a total forty percent or more disability which is deemed a service-connected injury or has received the United States Veterans' Administration K Award;

            (2)    Has served on active duty in the armed forces of the United States or has served as a member of the armed forces reserve or national guard, and the resident is totally forty percent or more disabled for the purposes of receiving social security benefits;

            (3)    Was held as a prisoner of war; or

            (4)    Has a total disability as defined by rules promulgated by the Game, Fish and Parks Commission.

    The resident small game license and the resident fishing license are valid for a period of four calendar years if the licensee remains a resident of the state. A veteran may provide proof at the time of application of receipt of such an allotment, social security disability benefits, or award. Any other applicant shall provide proof of total any disability on a form provided by the Department of Game, Fish and Parks.

    Section 2. That § 41-11-5.5 be amended to read:

    41-11-5.5. Any nonprofit organization may establish a special one-day one-or-two-day pheasant hunt in which disabled veterans of the United States Armed Forces may participate. The special one-day one-or-two-day pheasant hunt may be held before or during the regular pheasant season. No fee may be charged to participants in any such special one-day one-or-two-day pheasant hunt, by either the state or the sponsoring organization. The Game, Fish and Parks Commission shall promulgate rules, pursuant to chapter 1-26, to administer the special one-day one-or-two-day

pheasant hunts authorized in this section.

    For the purposes of this section a disabled veteran of the United States Armed Forces is a resident or nonresident who meets one of the criteria established in subdivisions 41-6-10.2(1) or (2).

     Signed March 9, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\208.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\209.wpd
CHAPTER 209

(SB 58)

Restrictions for the use of night-vision equipment for hunting.


        ENTITLED, An Act to revise certain restrictions for the use of night-vision equipment for hunting under certain conditions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 41-8-17 be amended to read:

    41-8-17. During the time from sunset to sunrise, no person may use or possess night-vision equipment or throw or cast the rays of a spotlight, headlight, or other artificial light on any highway, or in any field, pasture, woodland, forest, or prairie, for the purpose of spotting, locating, or taking or attempting to take or hunt any animal while having in possession or control any firearm, bow or other implement whereby any game could be killed. However:

            (1)    A person may use a hand held light while on foot, to take raccoons after they have been treed by dogs;

            (2)    A landowner or occupant and one guest no more than two guests accompanied by the landowner or occupant may use an artificial light and night vision equipment on the owner's or occupant's land, with a shotgun using shot shells only or a firearm using a rimfire cartridge in the taking of jackrabbits, coyotes, beaver during its hunting season, foxes, raccoons, opossums, badgers, skunks, or rodents; and

            (3)    A landowner or occupant, eighteen years of age or older, and no more than two guests accompanied by the landowner or occupant may use night vision equipment on the owner's or occupant's land, a firearm using a cartridge with a bullet diameter below .225 inches, in the taking of jackrabbits, coyotes, beaver during its hunting season, foxes, raccoons, opossums, badgers, skunks, or rodents; and

            (4)    Any person employed by the Department of Game, Fish and Parks performing animal damage control may use night-vision equipment and artificial lights in the performance of the person's duty. In the taking of animals causing damage the employee shall obtain permission from the owner or lessee of such land.

    For the purposes of this section, night-vision equipment is an optical device utilizing light amplifying circuits that are electrical or battery powered. The provisions of this section do not apply to a law enforcement officer in the performance of the officer's duty.

    A violation of this section is a Class 2 misdemeanor.

     Signed March 22, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\209.wpd



Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\210.wpd
CHAPTER 210

(SB 107)

Safety zone restrictions on hunting.


        ENTITLED, An Act to clarify certain safety zone restrictions on hunting.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 41-9-1.1 be amended to read:

    41-9-1.1. Except for controlled access facilities as defined in § 31-8-1, interstate highways, unimproved section lines not commonly used as public rights-of-way, and highways within parks or recreation areas or within or adjoining public shooting areas or game refuges posted for restriction of an applicable use as hereinafter set forth by the Department of Game, Fish and Parks, § 41-9-1 does not apply to fishing, trapping, or hunting on highways or other public rights-of-way within this state that meet the requirements of § 41-9-1.3. For purposes of this section, hunting on highways or other public rights-of-way includes:

            (1)    The shooting at or taking by legal methods of small game, except mourning dove, that are located within the boundaries of the highway or public right-of-way; and

            (2)    The shooting at or taking by legal methods of small game, except mourning dove, that are in flight over private land if the small game has either originated from or has taken flight from the highway or public right-of-way or if the small game is in the process of flying over the highway or public right-of-way.

    If subdivision (2) of this section is declared by an advisory opinion or adjudication of the South Dakota Supreme Court to be a taking of private property requiring compensation, subdivision (2) is void.

    No person, except the adjoining landowner or any person receiving written permission from the adjoining landowner, Only the owner of the occupied dwelling, church, or schoolhouse; the owner of livestock; or a person who has written permission from the owner of the occupied dwelling, church, or schoolhouse, or the owner of the livestock may use such highways or rights-of-way for the purposes of discharging any firearm or for the purposes of hunting defined in this title within a six hundred sixty-foot safety zone surrounding an occupied dwelling, a church, schoolhouse, or livestock. Neither the person discharging No other person may discharge a firearm at small game nor the small game being shot at may be within the safety zone. No person, except the adjoining landowner or any person receiving written permission from the adjoining landowner, may use such highways or rights-of-way for the purpose of trapping within six hundred sixty feet of an occupied dwelling, church, or schoolhouse. A violation of this section is a Class 2 misdemeanor. If any person is convicted of knowingly discharging a firearm within six hundred sixty feet of any occupied dwelling, church, or schoolhouse for which such that distance has been clearly and accurately marked and posted, the court shall, in addition to any other penalty, revoke the person's hunting privileges for a period of one year from the date of conviction. The sentencing court may order the revocation of hunting privileges authorized by this section to be served consecutively with any other revocation of the person's hunting privileges imposed for a violation for which the person is convicted and for which revocation of the privileges is authorized under this title.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\210.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\211.wpd
CHAPTER 211

(HB 1075)

Nonresident waterfowl licenses, rule amended.


        ENTITLED, An Act to revise the area for certain open units where nonresident waterfowl licenses are issued.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That ARSD 41:06:16:11 be amended to read:

    41:06:16:11. Maximum number of nonresident waterfowl licenses -- Open units -- Dates -- License restrictions. The maximum number of nonresident waterfowl licenses to be issued by lottery is 4,000 special nonresident waterfowl licenses, 2,000 early fall Canada goose temporary nonresident licenses, 2,000 fall three-day temporary nonresident waterfowl licenses, 100 nonresident youth waterfowl licenses, and 10,000 spring snow goose temporary nonresident licenses divided for administrative purposes as follows:

    (1) Unit NRW-00A: the counties of Union, Clay, Yankton, Bon Homme, and Charles Mix. No more than 250 special nonresident waterfowl licenses may be issued;

    (2) Unit NRW-00B: all open counties not in Units NRW-00A or NRW-11A. No more than 3,725 special nonresident waterfowl licenses may be issued;

    (3) Unit NRW-00C: those counties as described in § 41:06:50:02. No more than 2,000 early fall Canada goose temporary nonresident waterfowl licenses may be issued;

    (4) Unit NRW-11A: Bennett County. No more than 25 special nonresident waterfowl licenses may be issued. The season in this unit is open for 65 consecutive days beginning on the third Saturday of October and during any period that Bennett County is open in January as described in subdivision 41:06:16:07(3);

    (5) Unit NRW-00X: the counties of Campbell, Edmunds, Faulk, McPherson, Walworth, Potter, Stanley, Sully, Hughes, and Lyman. No more than 1,500 fall three-day temporary nonresident waterfowl licenses may be issued. These The licenses issued pursuant to this subdivision in Potter, Stanley, Sully, Hughes, and Lyman are valid only on private property as provided by SDCL 41-6-18.4;

    (6) Unit NRW-00Y: the counties of Brown, Marshall, Roberts, Day, Grant, Clark, Codington, Deuel, and Hamlin. No more than 500 three-day temporary nonresident waterfowl licenses may be issued;

    (7) Unit NRW-ST1: statewide. No more than 10,000 spring snow goose temporary nonresident licenses may be issued. These The licenses issued pursuant to this subdivision are valid only during a Conservation Order;

    (8) Unit NYW-YW1: statewide. No more than 100 nonresident youth waterfowl licenses may be issued for the youth waterfowl season established in Chapter 41:06:09. A nonresident youth may also hunt during the youth waterfowl season with a valid waterfowl hunting license as provided for in this section.

    Licenses issued under this section are valid only in the unit for which they are issued. Licenses

for Unit NRW-11A include two tags for Canada geese. Each tag is valid for taking one Canada goose consistent with the provisions of § 41:06:16:09. Each goose must shall be tagged immediately upon retrieval. The tag must shall be attached to the goose as instructed on each tag.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\211.wpd

RECREATION AND SPORTS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\212.wpd
CHAPTER 212

(HB 1057)

South Dakota Commission on Gaming rule-making revised.


        ENTITLED, An Act to revise the rule-making authority of the South Dakota Commission on Gaming.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 42-7B-4 be amended to read as follows:

    42-7B-4. Terms used in this chapter mean:

            (1)    "Adjusted gross proceeds," except in the case of the games of poker, gross proceeds less cash prizes. In games of poker, the term means any sums wagered in a poker hand which may be retained by the licensee as compensation which must be consistent with the minimum and maximum amount established by the South Dakota Commission on Gaming;

            (2)    "Bet," an amount placed as a wager in a game of chance;

            (3)    "Blackjack," a card game played by a maximum of seven players in which each player bets against the dealer. The object is to draw cards whose value will equal or approach twenty-one without exceeding that amount and win amounts bet, payable by the dealer, if the player holds cards more valuable than the dealer's cards. The commission may promulgate rules pursuant to chapter 1-26 authorizing variations of the game;

            (4)    "City limits," the boundaries of the city of Deadwood as they existed on January 1, 1989;

            (5)    "Commission," the South Dakota Commission on Gaming;

            (5A)    "Craps," a game in which the players place bets on the outcome of the roll or series of rolls of a pair of dice;

            (6)    "Gaming," limited card games, slot machines, craps, roulette, and keno as allowed and regulated by this chapter;

            (6A)    "Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a roulette table, or a keno number selection device;

            (7)    "Gaming employee," any person twenty-one years of age or older employed by an operator or retailer hosting gaming to work directly with the gaming portion of that business and who must hold a support license;

            (8)    "Gaming equipment," any equipment used in gaming that is allowed by this chapter and which requires licensing;

            (9)    "Gaming license," any license issued by the commission pursuant to this chapter which authorizes any person to engage in gaming within the city of Deadwood;

            (9A)    "Gaming property owner," any person other than a licensed retailer who owns real property where licensed gaming is conducted within the city of Deadwood. The term, gaming property owner, does not include any person who owned real property where licensed gaming was conducted within the city of Deadwood prior to January 1, 2010;

            (10)    "Historic restoration and preservation," the restoration and preservation of the city of Deadwood to maintain its historical background, cultural heritage, and necessary supporting infrastructures;

            (10A)    "Keno," a game in which players place bets by marking their selections on a blank ticket form with eighty numbered selection boxes and the outcome is determined by a number selection device;

            (10B)    "Key employee," any executive, employee, or agent of a gaming licensee having the power to exercise a significant influence over decisions concerning any part of the operation of a gaming licensee;

            (11)    "Licensed gaming establishment," any premises licensed pursuant to this chapter where gaming is conducted;

            (12)    "Licensee," any person licensed under this chapter;

            (13)    "Licensing authority," the South Dakota Commission on Gaming;

            (14)    "Limited card games and slot machines," any card games including poker and blackjack and slot machines authorized by this chapter and regulated by the commission;

            (15)    "Net municipal proceeds," the amount remitted to the city of Deadwood by the South Dakota Commission on Gaming;

            (16)    "Operator," any person who places poker tables, blackjack tables, slot machines, craps tables, roulette tables, or keno number selection devices in the person's own business premises;

            (17)    "Person," includes individuals, partnerships, limited liability companies, associations, and corporations;

            (18)    "Poker," a card game played by players who are dealt cards by a nonplayer dealer. The object of the game is for each player to bet the superiority of the player's own hand and win the other players' bets by either making a bet no other player is willing to match or proving to hold the most valuable cards after all the betting is over. Poker includes draw, stud, low ball, or any combination thereof. The commission may promulgate rules pursuant to chapter 1-26 authorizing variations of the game;

            (19)    "Retailer," any licensee who maintains gaming at the licensee's place of business within the city of Deadwood for use and operation by the public;

            (20)    "Retail space," the area where the retailer's business is principally conducted;

            (20A)    "Roulette," a game in which players place bets on a single number or a range of numbers or the colors red or black or whether the number is odd or even or a combination thereof and the winning numbers and color are determined by a ball which is spun on a wheel;

            (20B)    "Route operator," any person who, individually or jointly pursuant to an agreement whereby consideration is paid for the right to place poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device, engages in the business of placing and operating poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device within the city of Deadwood;

            (21)    "Slot machines," any mechanical, electrical, or other device, contrivance, or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration whatsoever, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash premiums, merchandise, tokens, redeemable game credits or anything of value other than unredeemable free games whether the payoff is made automatically from the machines or in any other manner;

            (22)    "Slot machine manufacturer," any person or distributor who designs, assembles, fabricates, produces, constructs, sells, leases, or who otherwise prepares a product or a component part of a slot machine, other than tables or cabinetry;

            (23)    "Suitability" or "suitable," in relation to a person is the ability to be licensed by the commission and as to acts or practices, are lawful acts or practices;

            (24)    "Unsuitability" or "unsuitable," in relation to a person is the inability to be licensed by the commission because of prior acts, associations, or financial condition, and as to acts or practices, are those that would violate the statutes or rules or would be contrary to the declared legislative purpose of this chapter.

    Section 2. That § 42-7B-7 be amended to read as follows:

    42-7B-7. The commission may promulgate rules, pursuant to chapter 1-26, for the orderly transaction and conduct of its business and the substantive rules that it may determine proper concerning the issuance, revocation, and suspension of gaming licensees, the division of limited card games, slot machines, craps, roulette, or keno that may be placed in any building or retail business, conduct, and operation of limited card games, slot machines, craps, roulette, or keno, variations of limited card games, craps or roulette, and any other things necessary to carry out the purposes of this chapter. The commission may also promulgate rules necessary to administer complaints which may be received from the public and conduct such other investigations and inspections into the conduct of the games and the licensees and the maintenance of the equipment as the commission deems necessary and proper. License issuance, suspension, and revocation are contested cases within the meaning of chapter 1-26. The commission's rules may provide procedures for summary suspension of any license issued under this chapter and shall provide for subsequent contested case hearings before suspensions become final or a license is revoked. The commission may apply for injunctive or declaratory relief to enforce the provisions of this chapter and any rules promulgated thereunder. Action by the commission may not limit the authority of the state's attorney or attorney general from enforcing criminal actions.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\212.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\213.wpd
CHAPTER 213

(SB 42)

South Dakota Athletic Commission fees revised.


        ENTITLED, An Act to increase certain fees for boxing, kickboxing, and mixed martial arts competitions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 42-12-10 be amended to read:

    42-12-10. The commission shall promulgate rules, pursuant to chapter 1-26, to:

            (1)    Govern the conduct of boxing, kickboxing, and mixed martial arts competitions, and sparring exhibitions;

            (2)    Establish registration criteria and registration fees for all boxers, kickboxers, and mixed martial artists who participate in competitions and sparring exhibitions governed by the commission;

            (3)    Establish license criteria and license fees for all promoters, managers, and matchmakers of boxing, kickboxing, or mixed martial arts competitions;

            (4)    Establish registration requirements for all boxing, kickboxing, or mixed martial arts competitions or sparring exhibitions held in the state;

            (5)    Establish the written records to be maintained for all competitions and sparring exhibitions conducted in the state;

            (6)    Establish a fee based on the percentage of gross revenues from any boxing, kickboxing, or mixed martial arts competition or sparring exhibition held in the state to cover the expenses of the South Dakota Athletic Commission. The fee established under this subdivision may not exceed five percent of the gross revenues of the exhibition from any and all sources including cable television and pay-per-view telecasts of the event, exclusive of any federal tax. However, in no event may the fee be less than one thousand dollars the commission may establish and impose a minimum exhibition fee not to exceed five thousand dollars to cover the expenses of the South Dakota Athletic Commission;

            (7)    Establish criteria for approved bona fide educational institutions or national amateur boxing, kickboxing, or mixed martial arts associations for purposes of being exempted from the provisions of this chapter;

            (8)    Establish procedures for disciplinary proceedings; and

            (9)    Establish procedures for receiving and conducting complaint investigations.

    Section 2. That ARSD 20:81:02:03 be amended to read:

    20:81:02:03. Contest fees. For each approved contest, the promoter shall pay a fee of one three thousand dollars or five percent of the gross revenue of the contest, whichever is greater. At the time of application to register a contest, the promoter applying for registration shall submit a fee of one thousand dollars. The fee is refundable if the application is denied. If the application is approved,

the submitted fee shall be applied to any the remaining contest fee owed to the commission.

    The commission shall provide forms for the calculation and payment of contest fees due to the commission based on the gross revenue of the contest as set forth in § 20:81:07:05.

    The promoter shall pay the remaining contest fee due to the commission within thirty days of the completion of the event.

     Signed March 9, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\213.wpd

PROPERTY

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\214.wpd
CHAPTER 214

(HB 1082)

The list of navigable streams requiring gates, codified.


        ENTITLED, An Act to codify the list of navigable streams requiring gates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 43-17-34 be amended to read:

    43-17-34. A stream, or portion of a stream, is navigable if it can support a vessel capable of carrying one or more persons throughout the period between the first of May to the thirtieth of September, inclusive, in two out of every ten years. A dry draw, as defined in § 46-1-6, is not navigable. This section does not apply to any stream or portion of a stream which is navigable pursuant to federal law. Any person may petition the Water Management Board for a declaratory ruling as to the navigability of any stream, or portion of a stream, in this state. The Water Management Board may charge the petitioner a fee not to exceed two hundred fifty dollars to defray the costs of preparing the declaratory ruling. Neither this section nor any declaratory ruling made pursuant to this section grants, creates, recognizes, conveys, removes, or diminishes The provisions of §§ 43-17-34 to 43-17-36, inclusive, and § 43-17-38 do not grant, create, recognize, convey, remove, or diminish any right or title to property. The provisions of this section apply only to the implementation of §§ 43-17-35 to 43-17-37 and 43-17-38, inclusive.

    Section 2. That § 43-17-37 be repealed.

    Section 3. That § 43-17-38 be amended to read:

    43-17-38. A gate or opening constructed pursuant to § 43-17-36 is required in any fence that crosses any stream or portion of any stream that is navigable pursuant to § 43-17-34 and that has been designated by the Water Management Board as requiring a gate or opening pursuant to § 43-17-39. A gate or opening constructed pursuant to § 43-17-36 is required in any fence that may be constructed across any of the following streams or portions of such streams:

            (1)    Big Sioux River from the Grant-Codington County boundary to a point five miles north of the Missouri River in Union County;

            (2)    Turtle creek, from Highway 26 to the James River, located in Spink County;

            (3)    Elm River, from Elm Lake to the James River, located in Brown County;

            (4)    Moccasin Creek, from 18th Avenue southwest to 8th Avenue northwest in the City of Aberdeen, located in Brown County;

            (5)    North fork of Whetstone River, from Highway 15 near Wilmot to the Minnesota state boundary, located in Roberts and Grant Counties;

            (6)    Flandreau Creek, from the Minnesota state boundary to the Big Sioux River, located in Moody County;

            (7)(6)    Vermillion River, from Lake Vermillion to the Missouri River;

            (8)(7)    East fork of the Vermillion River, from Interstate 90 to Lake Vermillion, located in McCook County;

            (9)(8)    Splitrock Creek, from the Minnesota state boundary to the Big Sioux River, located in Minnehaha County;

            (10)(9)    Firesteel Creek, that portion located in Davison County;

            (11)(10)    Little White River, from the Bennett-Todd County boundary to the White River, located in Todd and Mellette Counties;

            (12)(11)    White River, from the Nebraska state boundary to the Missouri River;

            (13)(12)    Bad River, from the Stanley-Jones County boundary to the Missouri River, located in Stanley County;

            (14)(13)    Cheyenne River, from the Wyoming state boundary Hat Creek to the Angostura Dam in Fall River County, and from Custer-Fall River County boundary to Highway 44 in Pennington County, and from the confluence of the Belle Fourche-Cheyenne Rivers to the Missouri River;

            (15)(14)    Moreau River, from Highway 63 to the Missouri River;

            (16)(15)    Grand River, from Shadehill Reservoir to the Missouri River;

            (17)    Little Missouri River, from the Montana state boundary to the North Dakota state boundary, located in Harding County;

            (18)    Belle Fourche River, from the Wyoming state boundary to the Belle Fourche irrigation project diversion dam and from Highway 79 to the Cheyenne River;

            (19)    Little Minnesota River, from Highway 10 to Lake Traverse, located in Roberts County; and

            (20)(16)    Redwater River, from Highway 85 to the Belle Fourche River, located in Butte County.

    Because the Missouri River, James River, Boise des Sioux River, and the lower five miles of the Big Sioux River have been designated as navigable pursuant to federal law, this chapter does not permit fencing, with or without gates, across the federally-navigable portions of these rivers.

    The extent of the public's use shall be the determining factor in designating a stream or portion of a stream pursuant to this section or § 43-17-39. The public's right to the use of such designated streams as public highways pursuant to § 43-17-2 may be impaired if a gate or opening is not provided in each fence across the streams. Construction of a fence in violation of this section is a Class 2 misdemeanor.

    The public's interest in or right to use other streams navigable pursuant to § 43-17-34 but not designated pursuant to this section or § 43-17-39 is not impaired or unduly restricted if fences crossing such other navigable streams are not provided with a gate or opening. This section and § 43-17-39 do does not diminish the public's interest in or right to use streams that are navigable pursuant to § 43-17-34 but that are not designated pursuant to this section or § 43-17-39.

    Section 4. That § 43-17-39 be repealed.

    Section 5. That ARSD 74:02:10:04 be repealed.

    Section 6. That ARSD 74:02:10:05 be repealed.

    Section 7. That ARSD 74:02:10:06 be repealed.

    Section 8. That ARSD 74:02:10:07 be repealed.

     Signed February 25, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\214.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\215.wpd
CHAPTER 215

(HB 1058)

Abandoned mineral interests recovery procedure revised.


        ENTITLED, An Act to revise the procedure for recovery of abandoned mineral interests.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 43-30A-2 be amended to read as follows:

    43-30A-2. A mineral interest shall, if unused for twenty-three years, be deemed to be abandoned, unless a statement of claim is recorded in accordance with § 43-30A-4 is abandoned if it has not been used for a period of twenty-three years or more. Title to an abandoned mineral interest shall vest vests in the owner of the surface estate in the land in, or under, which the mineral interest is located on the date of abandonment.

    Section 2. That § 43-30A-3 be amended to read as follows:

    43-30A-3. A mineral interest is deemed to be used if:

            (1)    Minerals are produced under that by or with the express permission of the record owner of the mineral interest;

            (2)    Operations are conducted thereon for injection, withdrawal, storage, or disposal of water, gas, or other fluid substances to produce or enhance the production of minerals by or with the express permission of the record holder of the mineral interest;

            (3)    In the case of For solid minerals, there is production from a common vein or seam by the owners or with the express permission of the record owner of the mineral interest;

            (4)    Any valid conveyance, valid lease, mortgage, assignment, order in an estate settlement proceeding, inheritance tax determination affidavit, probate distribution, termination of joint tenancy interest affidavit, termination of life estate affidavit, transfer on death deed, or any judgment or decree that makes specific reference to the record owner's mineral interest is recorded within the last twenty-three years in the office of the register of deeds for the county in which the mineral interest is located;

            (5)    The mineral interest is subject to an order or an agreement to pool or unitize;

            (6)    Taxes are paid on the mineral interest on behalf of the owner;

            (7)    A statement of claim is recorded in compliance with § 43-30A-4; or

            (8)(7)    A proper instrument describing the mineral interest has been recorded prior to an affidavit recorded under prior law pursuant to § 43-30-7, in the office of the register of deeds for the county in which the mineral interest is located.

    Section 3. That § 43-30A-4 be amended to read:

    43-30A-4. A statement of claim shall:

            (1)    Be recorded for the record owner of the mineral interest prior to the end of the twenty-three-year period set forth in § 43-30A-2. A joint tenant, but not a tenant in common, may record a claim on behalf of himself and other joint tenants;

            (2)    Contain the name and mailing address of the record owner of the mineral interest and a legal description of the land on or under which the mineral interest is located; and

            (3)    Be recorded in the office of the register of deeds for the county in which the mineral interest is located.

    A mineral interest is deemed to be in use on the date of recording if the recording is made within the time provided by this section. A statement of claim filed after July 31, 2013, by a person other than the owner of record of the mineral interest is not effective to preserve a mineral interest unless accompanied by a reference to the name of the record owner under whom the owner of the mineral interest claims.

    Section 4. That § 43-30A-5 be amended to read as follows:

    43-30A-5. Failure to record the statement of claim within the time period provided in § 43-30A-4 does not cause a mineral interest to be extinguished if:

            (1)    The owner of record abandoned if the record owner of the mineral interest satisfies either one of the following requirements records a statement of claim pursuant to § 43-30A-4 within sixty days after first completion of the publication of the notice provided for in of lapse pursuant to § 43-30A-6:

            (a)    Files with the county register of deeds a statement of claim as required in § 43-30A-4; or

            (b)    Files with the county register of deeds documentation that at least one of the activities under § 43-30A-3 took place during the twenty-year period immediately preceding the first publication of notice;

            (2)    A person other than the owner of record of the mineral interest files with the county register of deeds within sixty days after the first publication of the notice provided for in § 43-30A-6 an affidavit under oath or a declaration under oath which includes an explanation of the factual and legal basis for the person's assertion of title to the mineral interest. This explanation shall be accompanied by documentation supporting the assertion or an explanation why documentation is unavailable.

    Section 5. That § 43-30A-6 be amended to read as follows:

    43-30A-6. In order to succeed to the ownership of a an abandoned mineral interest upon its lapse, a surface owner shall give notice of the lapse of the mineral interest by publication. The publication shall be made once each week for three weeks in the official newspaper of the county in which the mineral interest is located. If the address of the mineral interest owner is of record or can be determined upon reasonable inquiry, notice Notice shall also be made given by mailing a copy of the notice by registered or certified mail, return receipt requested, to the record owner of the mineral interest within at the record owner's address of record no later than ten days after the last publication is made.

    The surface owner may rely upon the record mineral owner's last address of record in the office of county register of deeds in which the mineral interest is located. It is the record mineral owner's obligation to maintain an address of record in the office of the register of deeds in the county in which their mineral interest is located. Failure to maintain an address of record is a waiver by the record mineral owner of the requirement to mail a copy of the notice of lapse to the record mineral owner.

    The notice shall state the name of the record owner of the mineral interest, a the legal description of the land on or under which the mineral interest involved is located, and the name of the person giving the notice.

    A Recording a copy of the notice and an affidavit of its service, if recorded publication and any mailing in the office of the register of deeds for the county in which the mineral interest is located, is prima facie evidence in any legal proceeding that such the notice has been properly given.

    Section 6. That § 43-30A-6.1 be repealed.

    Section 7. That § 43-30A-11 be repealed.

    Section 8. That § 43-30A-12 be repealed.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\216.wpd
CHAPTER 216

(SB 93)

Homestead exemption revised.


        ENTITLED, An Act to revise certain provisions regarding the homestead exemption.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 43-31-31 be amended to read:


    43-31-31. Terms as used in this act mean:

            (1)    "Base year," for those heads of households who reached seventy years of age in or prior to 1994, the base year is 1994. For those heads of households who will reach seventy years of age subsequent to 1994, the base year is the year in which they will reach the age of seventy. In the case of a surviving spouse, the base year is the year which would have been the base year of the deceased spouse;

            (2)    "Department," the Department of Revenue;

            (3)    "Head of household," a married person, a single person, a widow or widower, or a divorced person;

            (4)    "Household," the association of persons who live in the same dwelling, sharing its furnishings, facilities, and accommodations, but not including bona fide lessees, tenants, or roomers and boarders on contract;

            (5)    "Secretary," the secretary of the Department of Revenue;

            (6)    "Single-family dwelling," a house, condominium apartment, or manufactured home as defined in § 32-3-1 which is assessed and taxed as a separate unit including the platted lot upon which the structure is situated or one acre, whichever is less, and the garage, whether attached or unattached;

            (7)    "Surviving spouse," the spouse of a deceased head of household who has not remarried.

    Section 2. That § 43-31-33 be amended to read:

    43-31-33. Applications for a prohibition on the collections of real property taxes under §§ 43-31-31 to 43-31-41, inclusive, shall be made annually on or before May April first on forms prescribed by the secretary of revenue. Forms shall be made available to county treasurers who shall, upon request of an applicant, assist the applicant in completing the forms.

    Section 3. That § 43-31-41 be amended to read:

    43-31-41. If any head of household person, entity, or trust chooses to pay any property taxes which have not been collected pursuant to §§ 43-31-31 to 43-31-41, inclusive, such payments shall apply to the oldest property taxes and the interest thereon. If a person qualifies for a prohibition on the collection of real property taxes pursuant to §§ 43-31-31 to 43-31-41, inclusive, nothing in those sections may be construed to prohibit a county treasurer from accepting payment for the real property taxes from any person, entity, or trust that submits payment to a county treasurer.

     Signed March 14, 2016
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WATER MANAGEMENT

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\217.wpd
CHAPTER 217

(SB 116)

Water development districts, residents and voters
to participate in actions.


        ENTITLED, An Act to remove any reference to land ownership being a requirement for participation in any actions pertaining to the creation of or withdrawal from a water development district.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 46A-3A-8 be amended to read:

    46A-3A-8. Fifteen percent of the owners of real property residents and voters in a geographical area, as shown by the records in the offices of the register of deeds of the county wherein the real property is situated, may petition the Board of Water and Natural Resources to submit to an election the question of whether the geographical area shall become a water development district. If land is sold under a contract for deed, which is of record in the office of the register of deeds in the county wherein the land is situated, both the landowner and the landowner's individual purchaser of the land, as named in the contract for deed, shall be treated as owners of real property.

    Section 2. That § 46A-3A-14 be amended to read:

    46A-3A-14. If in some, but not all of the election districts within a proposed water development district, sixty percent or more of the votes cast are in favor of the formation of the water development district, the Board of Water and Natural Resources shall by resolution establish a water development district consisting of only those election districts wherein the requisite vote approving the formation of a water development district was cast. In the event of the creation of such a water development district, any of the election districts may withdraw from the water development district by filing with the board within sixty days thereafter, a petition requesting such withdrawal, signed by fifteen percent of the owners of land residents and voters in such the election district. The petition shall contain the same information with respect to the signers and be verified in the same manner as in the case of a petition to establish a water development district. The question of whether an election district shall withdraw shall be referred to the voters of such the election district at the next general election, the procedure to be is the same as required to establish a water development district.

    Section 3. That § 46A-3B-9 be amended to read:

    46A-3B-9. Directors shall take office on the first day of January of the year following their election, or not later than sixty days after election in the case of a special election. Vacancies that may occur on the water development district board of directors by reason of death, disability, failure to be a resident and property owner voter, resignation, or other cause pursuant to § 3-4-1, or upon expiration of term of office if no qualifying petitions have been filed or if no successor has qualified for the office, unless otherwise provided in chapters 46A-3A to 46A-3E, inclusive, shall be declared to exist and shall be filled by elective action of the remaining directors from candidates proposed by nominating petitions signed by at least twenty-five eligible voters in the director area for which a

vacancy exists.

     Signed March 10, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\218.wpd
CHAPTER 218

(SB 68)

Appropriations from the water and environment fund
and its revolving fund subfunds.


        ENTITLED, An Act to make appropriations from the water and environment fund and its revolving fund subfunds for various water and environmental purposes, to revise solid waste management program recycling provisions, to revise water and environment fund loan terms, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the South Dakota water and environment fund, established pursuant to § 46A-1-60, the sum of two million thirty-six thousand three hundred seventy-five dollars ($2,036,375), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing a grant to the project sponsors to be used for the engineering design, right-of-way acquisition, preconstruction activities, and construction of the Sioux Falls flood control project as authorized in section 17 of chapter 254 of the 1992 Session Laws. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 2. There is hereby appropriated from the South Dakota water and environment fund established pursuant to § 46A-1-60, the sum of seven hundred fifty thousand dollars ($750,000), or so much thereof as may be necessary, to provide funds to the South Dakota Board of Water and Natural Resources for the purpose of providing a grant to the Department of Environment and Natural Resources for the purpose of contracting for the development of a hydrologic model of the Big Sioux River Basin in eastern South Dakota. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources. Notwithstanding § 46A-1-61, the board may provide the grant for up to one hundred percent of the nonfederal share of expenditures for the hydrologic study.

    Section 3. There is hereby appropriated from the South Dakota water and environment fund established pursuant to § 46A-1-60, the sum of two hundred twenty-five thousand one hundred twenty-five dollars ($225,125), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing a grant to the project sponsors to be used for the feasibility level study update of the Big Sioux flood control study (Watertown and vicinity) to be completed by the United States Army Corps of Engineers. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 4. There is hereby appropriated from the South Dakota water and environment fund established pursuant to § 46A-1-60, the sum of five million two hundred fifty thousand dollars ($5,250,000), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing grants and loans to project sponsors under the consolidated water facilities construction program established pursuant to § 46A-1-63.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.


    Section 5. That § 34A-6-85 be amended to read:

    34A-6-85. Twenty-five percent of the fees received pursuant to §§ 34A-6-81 and 34A-6-82 shall be deposited in the environment and natural resources fee fund established in § 1-40-30 and shall be used to defray costs of administering the solid waste management program requirements of chapter 34A-6. All fees received pursuant to §§ 34A-6-83 and 34A-6-84 and seventy-five percent of the fees received pursuant to §§ 34A-6-81 and 34A-6-82 shall be deposited in the water and environment fund established in § 46A-1-60, and their expenditures shall be limited to the solid waste source reduction, recycling, and waste management program established in § 46A-1-83. Grants or loans from the water and environment fund shall be administered by the Board of Water and Natural Resources in accordance with the rules established for solid waste management grants or loans in § 46A-1-84. The board shall offer a grant or loan preference to tire management projects utilizing fees originating pursuant to § 34A-6-83, including waste tire shredding and transporting. The board shall award financial assistance to projects for waste tire shredding and transporting until there is capacity in the private sector to fully utilize all new waste tires generated in this state on an annual basis. Financial assistance for waste tire shredding and transporting may total no more than two hundred fifty thousand dollars in any one fiscal year, but such financial assistance may not be awarded to any state agency. The board shall offer a grant or loan preference to any municipal solid waste landfill facility using volume-based fees reflecting full and true disposal cost. After deducting the amounts provided for waste tire activities provided for by this section and § 34A-6-85.1, at least fifty percent of the amount remaining from the fees imposed pursuant to §§ 34A-6-81 to 34A-6-84, inclusive, shall be awarded as recycling grants or loans projects.

    Section 6. That § 46A-1-67 be amended to read:

    46A-1-67. Loans from the South Dakota water and environment fund shall be for a term of years established by the conservancy district, board but the term may not exceed seven years for loans for purposes other than actual construction of water resources projects nor forty years for loans for actual construction loans except as provided in § 46A-1-69, the useful life of the equipment for equipment loans, or seven years for loans for other purposes. Loans made for purposes other than construction may, however, be capitalized and refinanced as construction loans when the project proceeds to construction.

    Section 7. There is hereby appropriated from the South Dakota water and environment fund established pursuant to § 46A-1-60, the sum of two million four hundred thousand dollars ($2,400,000), or so much thereof that may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing grants and loans to project sponsors under the solid waste management program established pursuant to § 46A-1-83. Funds shall be provided according to the terms and conditions established by the Board of Water and Natural Resources.

    The Department of Environment and Natural Resources may use up to two hundred fifty thousand dollars of the funds appropriated by this section, to contract for the statewide cleanup of waste tires and solid waste. Notwithstanding § 46A-1-61, the department may fund up to one hundred percent of the nonfederal share of statewide waste tires and solid waste cleanup projects.

    Section 8. There is hereby appropriated from administrative expense surcharge fees deposited in the South Dakota state water pollution control revolving fund program subfund established pursuant to § 46A-1-60.1, the sum of one million three hundred thousand dollars ($1,300,000), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing water quality grants under the state water pollution control revolving fund program established pursuant to § 46A-1-60.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 9. There is hereby appropriated from administrative expense surcharge fees deposited in the South Dakota state water pollution control revolving fund program subfund established pursuant to § 46A-1-60.1, the sum of one hundred fifty thousand dollars ($150,000), or so much

thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of contracting for the preparation of applications and administration of clean water state revolving fund loans under the state water pollution control revolving fund program established pursuant to § 46A-1-60.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 10. There is hereby appropriated from administrative expense surcharge fees deposited in the South Dakota state drinking water revolving fund program subfund established pursuant to § 46A-1-60.1, the sum of fifty thousand dollars ($50,000), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of contracting for the preparation of applications and administration of drinking water state revolving fund loans under the state drinking water revolving fund program established pursuant to § 46A-1-60.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 11. There is hereby appropriated from federal funds deposited in the South Dakota state drinking water revolving fund program subfund established pursuant to § 46A-1-60.1, the sum of one hundred fifty thousand dollars ($150,000), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing small system technical assistance set-aside grants to project sponsors under the state drinking water revolving fund program established pursuant to § 46A-1-60.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 12. There is hereby appropriated from federal subsidy payments deposited in the South Dakota state water pollution control revolving fund program subfund established pursuant to § 46A-1-60.1, the sum of two million seven hundred fifty thousand dollars ($2,750,000), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing wastewater grants under the state water pollution control revolving fund program established pursuant to § 46A-1-60.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 13. There is hereby appropriated from federal subsidy payments deposited in the South Dakota state drinking water revolving fund program subfund established pursuant to § 46A-1-60.1, the sum of one million two hundred fifty thousand dollars ($1,250,000), or so much thereof as may be necessary, to the South Dakota Board of Water and Natural Resources for the purpose of providing grants for the construction of drinking water facilities under the state drinking water revolving fund program established pursuant to § 46A-1-60.1. Funds shall be provided according to terms and conditions established by the Board of Water and Natural Resources.

    Section 14. The secretary of environment and natural resources shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 15. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 16. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 18, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\218.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\219.wpd
CHAPTER 219

(SB 18)

Appropriation to the State Conservation Commission.


        ENTITLED, An Act to make an appropriation from the coordinated natural resources conservation fund to the State Conservation Commission and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the coordinated natural resources conservation fund the sum of one million dollars ($1,000,000), or so much thereof as may be necessary, in accordance with subdivision 10-47B-149(5), to the State Conservation Commission.

    Section 2. The State Conservation Commission shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed February 18, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\219.wpd

CORPORATIONS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\220.wpd
CHAPTER 220

(SB 98)

Pork production regulation.


        ENTITLED, An Act to revise and repeal certain provisions regarding pork production.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 47-9A be amended by adding a NEW SECTION to read:

    The production of pork is subject to the same provisions which apply to livestock feeding, breeding stock, dairies, and poultry and egg operations under this chapter.

    Section 2. That § 47-9A-13.1 be repealed.

     Signed March 16, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\220.wpd



Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\221.wpd
CHAPTER 221

(HB 1068)

South Dakota Nonprofit Corporation Act, revisions and updates.


        ENTITLED, An Act to revise provisions related to the conversion of nonprofit corporations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 47-22-4 be amended to read:

    47-22-4. Corporations may be organized under this chapter for any lawful purpose, including, but not limited to, any one or more of the following purposes:

            (1)    Agricultural;

            (2)    Animal husbandry;

            (3)    Athletic;

            (4)    Benevolent;

            (5)    Charitable;

            (6)    Civic;

            (7)    Cultural;

            (8)    Educational;

            (9)    Eleemosynary;

            (10)    Fraternal;

            (11)    Horticultural;

            (12)    Literary;

            (13)    Patriotic;

            (14)    Political;

            (15)    Religious;

            (16)    Scientific;

            (17)    Social; and

            (18)    Professional, commercial, industrial, or trade association. However, labor unions, cooperative organizations, other than housing cooperatives, communals, and organizations subject to any of the provisions of the banking laws of this state may not be organized under this chapter. Notwithstanding any other provision of this title, any insurance organization formed under this chapter is subject to Title 58.

    Section 2. That § 47-22-5 be amended to read:

    47-22-5. Three One or more natural persons of the age of majority may act as incorporators of a corporation by delivering to the secretary of state the articles of incorporation for such corporation. Delivery may be made by electronic transmission if and to the extent permitted by the Office of the Secretary of State. If the document is filed in typewritten or printed form and not transmitted electronically, the Office of the Secretary of State may require one exact or conformed copy to be delivered with the document.

    Section 3. That chapter 47-22 be amended by adding a NEW SECTION to read:

    Notwithstanding any provision to the contrary in chapters 47-22 to 47-28, inclusive, filings with the Office of Secretary of State may be made by electronic transmission if and to the extent permitted by the Office of Secretary of State.

    Section 4. That chapter 47-22 be amended by adding a NEW SECTION to read:

    Notwithstanding any provision to the contrary in chapters 47-22 to 47-28, inclusive, filings with the Office of Secretary of State may specify delayed effective time and date, and if it does so the document becomes effective at the time and date specified. If a delayed effective date is indicated, but no time is specified, the document is effective at the close of business on that date. A delayed effective date for a document may not be later than the ninetieth day after the date it is filed.

    Section 5. That § 47-23-2.1 be amended to read:

    47-23-2.1. No director, trustee, committee member, or officer serving without compensation, other than reimbursement for actual expenses, of any corporation organized under this chapter or under similar laws of another state, and which is exempt from taxation pursuant to Section 501(a) of the Internal Revenue Code, 26 U.S.C. Section 501(a) and is listed as an exempt organization in Section 501(c) of the Internal Revenue Code, 26 U.S.C. Section 501(c), or any hospital organized pursuant to chapter 34-8, 34-9, or 34-10 is liable, and no cause of action may be brought, for damages resulting from the exercise of judgment or discretion in connection with the duties or responsibilities of such director, trustee, committee member, or officer while acting in an official capacity as such director, trustee, committee member, or officer, unless the act or omission involved willful or wanton misconduct. The immunity provided by this section applies to any member of an advisory board, serving without compensation, other than reimbursement for actual expenses, of any corporation described by this section.

    Section 6. That § 47-23-4 be amended to read:

    47-23-4. An annual meeting of the members of a corporation shall be held at such time as may be provided in the bylaws. Failure to hold the annual meeting at the designated time shall not work a forfeiture or dissolution of the corporation. The articles of incorporation or bylaws may provide that an annual or regular meeting of members does not need to be held at a geographic location and may instead be held by any means of electronic communication which allows the members to read or hear the proceedings substantially concurrently with their occurrence, vote on matters submitted to the members, pose questions, and make comments.

    Section 7. That § 47-23-6 be amended to read:

    47-23-6. Any action required by chapters 47-22 to 47-28, inclusive, to be taken at a meeting of the members or directors of a corporation, or any action which may be taken at a meeting of the members or directors or of a committee of directors, may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all the members entitled to vote with respect to the subject matter thereof, or all of the directors, or all of the members of the committee of directors, as the case may be. If permitted in the articles of incorporation or the bylaws, such

consent and signature may be transmitted by any reasonable means including, but not limited to, traditional mail, hand delivery, email, or electronic facsimile.

    Such consent shall have the same force and effect as a unanimous vote, and may be stated as such in any articles or document filed with the secretary of state under chapters 47-22 to 47-28, inclusive.

    Section 8. That § 47-23-7 be amended to read:

    47-23-7. Unless otherwise provided in the articles of incorporation or the bylaws, written notice stating the place, day, and hour of the meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten nor more than fifty days before the date of the meeting, either personally or by mail, by or at the direction of the president, or the secretary, or the officers or persons calling the meeting, to each member entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail addressed to the member at his address as it appears on the records of the corporation, with postage thereon prepaid. If permitted in the articles of incorporation or the bylaws, notice of meetings may be given by any reasonable means including, but not limited to, traditional mail, hand delivery, email, or electronic facsimile.

    Section 9. That § 47-23-9 be amended to read:

    47-23-9. A member entitled to vote may vote in person or, unless the articles of incorporation or the bylaws otherwise provide, may vote by proxy executed in writing by the member or by his duly authorized attorney in fact. No proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the proxy. Where directors or officers are to be elected by members, the bylaws may provide that such elections may be conducted by mail. Except as otherwise provided in the articles of incorporation or bylaws, any action that may be taken at any annual, regular, or special meeting of members may be taken without a meeting if the corporation delivers a ballot to every member entitled to vote on the matter. Each ballot must:

            (1)    Set forth each proposed action;

            (2)    Provide an opportunity to vote for or against, or withhold a vote for, each proposed action;

            (3)    Be delivered to each member by any means of transmission set forth in the bylaws or articles of incorporation. If no method is set forth in the bylaws or articles of incorporation, ballots may be delivered by any reasonable means, including, but not limited to, traditional mail, hand delivery, email, or electronic facsimile;

            (4)    Indicate the number of responses needed to meet the quorum requirements;

            (5)    State the percentage of approvals necessary to approve each matter other than election of directors; and

            (6)    Specify the time by which a ballot must be received in order to be counted.

    Unless otherwise provided in the articles of incorporation or bylaws, approval by ballot, pursuant to this section, of action other than election of directors is valid only when the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot. Except as otherwise provided in the articles of incorporation or bylaws, a ballot may not be revoked.

    Section 10. That § 47-23-13 be amended to read:



    47-23-13. The Except as authorized by § 47-23-22, the affairs of a corporation shall be managed by a board of directors. Directors need not be members of the corporation unless the articles of incorporation or the bylaws so require. The articles of incorporation or the bylaws may prescribe other qualifications for directors.

    Section 11. That § 47-23-22 be amended to read:

    47-23-22. If the articles of incorporation or the bylaws so provide, the board of directors, by resolution adopted by a majority of the directors in office, may designate one or more committees each of which shall consist of two one or more directors, which and such additional members as specified in the resolution which such additional members need not be a director or member of the nonprofit corporation, or resident of the state. Such committees, to the extent provided in such resolution, in the articles of incorporation or in the bylaws of the corporation, shall have and exercise the authority or function of the board of directors in the management of the corporation; but the. The designation of such committees and the delegation thereto of authority shall not operate to relieve the board of directors, or any individual director of any responsibility imposed upon it or him any individual director by law except those responsibilities related to the authority or function the committee is authorized to exercise. Other committees not having and exercising the authority of the board of directors in the management of the corporation may be designated by a resolution adopted by a majority of the directors present at a meeting at which a quorum is present. Members of committees created under this section have the same rights of indemnification and immunity as are provided to the board of directors in chapters 47-22 to 47-28, inclusive, unless otherwise provided in the articles of incorporation or bylaws.

    Section 12. That § 47-24-1 be amended to read:

    47-24-1. Each corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its members, board of directors, and committees having any of the authority of the board of directors; and shall keep at its registered office or principal office a record of the names and addresses of its members entitled to vote. If authorized by the articles of incorporation or bylaws, the records required by this section may be kept in electronic format.

    Section 13. That § 47-24-17 be amended to read:

    47-24-17. Upon At least ten days prior to the sale, transfer, conversion, or merger of at least thirty percent of the assets of a nonprofit corporation, the corporation shall give written notice to the attorney general. The following information shall, within sixty days of such sale, transfer, or merger, be submitted to the secretary of state:

            (1)    Name and address of the parties involved in the sale, transfer, conversion, or merger;

            (2)    Terms and conditions of the sale, transfer, conversion, or merger;

            (3)    Dollar value of the assets being sold, transferred, converted, or merged, including an account of how the value was determined; and

            (4)    An explanation of how the sale, transfer, conversion, or merger furthers the purpose of the nonprofit corporation.

    The information shall be submitted on forms provided by the secretary of state.

    Section 14. That the code be amended by adding a NEW SECTION to read:

    At least ten days prior to a meeting to dissolve under chapter 47-26, or conversion from a nonprofit corporation to a domestic business corporation or other business entity authorized by law, the corporation shall provide notice to the attorney general which notice shall include a copy of the

plan for distribution of assets required pursuant to § 47-26-6 or plan of conversion pursuant to section 23 or 24 of this Act.

    Section 15. That the code be amended by adding a NEW SECTION to read:

    If so provided in the articles of incorporation or bylaws of the corporation, any written notice required to be provided to any member or director pursuant to any provision of chapters 47-22 to 47-28, inclusive, may be sent by any reasonable means of transmission set forth in the articles of incorporation or bylaws of the corporation, including, but not limited to, traditional mail, hand delivery, email, or electronic facsimile.

    Section 16. That the code be amended by adding a NEW SECTION to read:

    Terms used in sections 16 to 37, inclusive, of this Act, mean:

            (1)    "Conversion," a transaction authorized by sections 23 to 37, inclusive, of this Act;

            (2)    "Converting corporation," the domestic or foreign nonprofit or business corporation that approves a conversion pursuant to sections 23 to 37, inclusive, of this Act, or the applicable laws of the foreign jurisdiction;

            (3)    "Converting entity," the domestic or foreign entity that approves a conversion pursuant to sections 23 to 37, inclusive, of this Act;

            (4)    "Domesticated corporation," the domesticating corporation as it continues in existence after a domestication;

            (5)    "Domesticating corporation," the domestic nonprofit corporation that adopts a plan of domestication pursuant to sections 18 to 22, inclusive, of this Act, or the foreign nonprofit corporation that approves a domestication pursuant to the applicable laws of the foreign jurisdiction;

            (6)    "Domestication," a transaction authorized by sections 18 to 22, inclusive, of this Act;

            (7)    "Surviving corporation," the corporation as it continues in existence immediately after consummation of a for-profit conversion pursuant to sections 18 to 37, inclusive, of this Act;

            (8)    "Surviving entity," the unincorporated entity as it continues in existence immediately after consummation of an entity conversion pursuant to sections 18 to 37, inclusive, of this Act.

    Section 17. That the code be amended by adding a NEW SECTION to read:

    If a domestic or foreign nonprofit corporation may not be a party to a merger or sale of its assets without the approval of the attorney general, the Division of Insurance, or the Public Utilities Commission, the corporation may not be a party to a conversion or domestication without the prior approval of that agency.

    Section 18. That the code be amended by adding a NEW SECTION to read:

    (a) A foreign nonprofit corporation may become a domestic nonprofit corporation only if the domestication is authorized by the laws of the foreign jurisdiction.

    (b) A domestic nonprofit corporation may become a foreign nonprofit corporation if the domestication is permitted by the laws of the foreign jurisdiction. Regardless of whether the laws of the foreign jurisdiction require the adoption of a plan of domestication, the domestication must

be approved by the adoption by the corporation of a plan of domestication.

    (c) The plan of domestication must include:

            (1)    A statement of the jurisdiction in which the corporation is to be domesticated;

            (2)    The terms and conditions of the domestication;

            (3)    The manner and basis of canceling or reclassifying the memberships of the corporation following its domestication into memberships, obligations, rights to acquire memberships, cash, other property, or any combination of the foregoing; and

            (4)    Any desired amendments to the articles of incorporation or bylaws of the corporation following its domestication.

    (d) The plan of domestication may also include a provision that the plan may be amended prior to filing the document required by the laws of this state or the other jurisdiction to consummate the domestication; except that, subsequent to approval of the plan by the members, the plan may not be amended without the approval of the members to change:

            (1)    The amount or kind of memberships, obligations, rights to acquire memberships, cash, or other property to be received by the members under the plan;

            (2)    The articles of incorporation to be in effect immediately following the domestication; or

            (3)    Any of the other terms or conditions of the plan if the change would adversely affect any of the members in any material respect.

    (e) If any debt security, note or similar evidence of indebtedness for money borrowed, whether secured or unsecured, or a contract of any kind, issued, incurred or executed by a domestic nonprofit corporation before the effective date of this Act contains a provision applying to a merger of the corporation and the document does not refer to a domestication of the corporation, the provision shall be deemed to apply to a domestication of the corporation until such time as the provision is amended subsequent to that date.

    Section 19. That the code be amended by adding a NEW SECTION to read:

    In the case of a domestication of a domestic nonprofit corporation in a foreign jurisdiction:

            (1)    The plan of domestication must be adopted by the board of directors;

            (2)    After adopting the plan of domestication the board of directors must submit the plan to the members for their approval, if there are members entitled to vote on the plan. The board of directors must also transmit to the members a recommendation that the members approve the plan, unless the board of directors makes a determination that because of conflicts of interest or other special circumstances it should not make such a recommendation, in which case the board of directors must transmit to the members the basis for that determination;

            (3)    The board of directors may condition its submission of the plan of domestication to the members on any basis;

            (4)    If the approval of the members is to be given at a meeting, the corporation must notify each member, whether or not entitled to vote, of the meeting of members at which the plan of domestication is to be submitted for approval. The notice must state that the purpose, or one of the purposes, of the meeting is to consider the plan and must contain

or be accompanied by a copy or summary of the plan. The notice must include or be accompanied by a copy of the proposed articles of incorporation and bylaws to be in effect immediately after the domestication;

            (5)    Unless the articles of incorporation or bylaws, or the board of directors acting pursuant to subdivision (3) of this section, requires a greater vote or a greater number of votes to be present, the approval of the plan of domestication by the members requires the approval of the members at a meeting at which a quorum exists, and, if any class of members is entitled to vote as a separate group on the plan, the approval of each such separate class at a meeting at which a quorum of the class exists;

            (6)    Separate voting by classes is required by each class of members that:

            (i)    Are to be reclassified under the plan of domestication into a different class of memberships, or into obligations, rights to acquire memberships, cash, other property, or any combination of the foregoing;

            (ii)    Would be entitled to vote as a separate group on a provision of the plan that, if contained in a proposed amendment to articles of incorporation, would require action by separate classes; or

            (iii)    Is entitled under the articles of incorporation or bylaws to vote as a class to approve an amendment of the articles of incorporation;

            (7)    If any provision of the articles of incorporation, bylaws, or an agreement to which any of the directors, members of a designated body, or members are parties, adopted or entered into before the effective date of this Act, applies to a merger of the corporation and that document does not refer to a domestication of the corporation, the provision shall be deemed to apply to a domestication of the corporation until such time as the provision is amended subsequent to that date.

    Section 20. That the code be amended by adding a NEW SECTION to read:

    (a) Articles of domestication must be signed on behalf of the domesticating corporation by any officer or other duly authorized representative. The articles of domestication must set forth:

            (1)    The name and jurisdiction of incorporation of the domesticating corporation;

            (2)    The name and jurisdiction of incorporation of the domesticated entity; and

            (3)    If the domesticating corporation is a domestic nonprofit corporation, a statement that the plan of domestication was approved in accordance with the laws of this state, or, if the domesticating corporation is a foreign nonprofit corporation, a statement that the domestication was approved in accordance with the laws of its jurisdiction of incorporation.

    (b) If the domesticated corporation is a domestic nonprofit corporation, the articles of domestication shall contain all of the provisions required to be contained in the articles of incorporation of a nonprofit corporation as set forth in § 47-22-6. The name of the domesticated corporation must satisfy the requirements of §§ 47-22-7 and 47-22-8.1.

    (c) The articles of domestication must be delivered to the Office of the Secretary of State for filing.

    (d) If the domesticating corporation is a qualified foreign nonprofit corporation, its certificate of authority is cancelled automatically on the effective date of its domestication.

    Section 21. That the code be amended by adding a NEW SECTION to read:

    (a) Except as otherwise prohibited by law, when a domestication becomes effective:

            (1)    The title to all real and personal property, both tangible and intangible, of the domesticating corporation remains in the domesticated corporation without reversion or impairment;

            (2)    The liabilities of the domesticating corporation remain the liabilities of the domesticated corporation;

            (3)    An action or proceeding pending against the domesticating corporation continues against the domesticated corporation as if the domestication had not occurred;

            (4)    The articles of domestication, or the articles of incorporation attached to the articles of domestication, constitute the articles of incorporation of a foreign corporation domesticating in this state;

            (5)    The memberships in the domesticating corporation are reclassified into memberships, obligations, rights to acquire memberships, or cash or other property in accordance with the terms of the domestication, and the members are entitled only to the rights provided by those terms; and

            (6)    The domesticating corporation is deemed to:

            (i)    Be incorporated under and subject to the same body of law of as the domesticated corporation for all purposes; and

            (ii)    Be the same corporation without interruption as the domesticating corporation.

    (b) The personal liability of a member in a foreign nonprofit corporation that is domesticated in this state is as follows:

            (1)    The domestication does not discharge any personal liability under the laws of the foreign jurisdiction to the extent any such personal liability arose before the effective time of the articles of domestication;

            (2)    The member does not have personal liability under the laws of the foreign jurisdiction for any debt, obligation, or liability of the corporation that arises after the effective time of the articles of domestication;

            (3)    The provisions of the laws of the foreign jurisdiction continue to apply to the collection or discharge of any personal liability preserved by subdivision (1), as if the domestication had not occurred;

            (4)    The member has whatever rights of contribution from other members are provided by the laws of the foreign jurisdiction with respect to any personal liability preserved by subdivision (1), as if the domestication had not occurred.

    Section 22. That the code be amended by adding a NEW SECTION to read:

    (a) Unless otherwise provided in a plan of domestication of a domestic nonprofit corporation, after the plan has been adopted and approved, and at any time before the domestication has become effective, it may be abandoned by the board of directors without action by the members.

    (b) If a domestication is abandoned under paragraph (a) after articles of domestication have been

filed with the Office of the Secretary of State but before the domestication has become effective, a statement that the domestication has been abandoned in accordance with this section, signed by an officer or other duly authorized representative, must be delivered to the Office of the Secretary of State for filing prior to the effective date of the domestication. The statement takes effect upon filing and the domestication is abandoned and does not become effective.

    (c) If the domestication of a foreign nonprofit corporation in this state is abandoned in accordance with the laws of the foreign jurisdiction after articles of domestication are filed with the Office of the Secretary of State, a statement that the domestication has been abandoned, signed by an officer or other duly authorized representative, must be delivered to the Office of the Secretary of State for filing. The statement takes effect upon filing and the domestication is abandoned and does not become effective.

    Section 23. That the code be amended by adding a NEW SECTION to read:

    (a) A domestic nonprofit corporation may become a domestic business corporation pursuant to a plan of for-profit conversion.

    (b) A domestic nonprofit corporation may become a foreign business corporation if the for-profit conversion is permitted by the laws of the foreign jurisdiction. Regardless of whether the laws of the foreign jurisdiction require the adoption of a plan of for-profit conversion, the foreign for-profit conversion shall be approved by the adoption by the domestic nonprofit corporation of a plan of for-profit conversion.

    (c) The plan of for-profit conversion must include:

            (1)    The terms and conditions of the conversion;

            (2)    The manner and basis of:

            (i)    Issuing at least one share in the corporation following its conversion; and

            (ii)    Otherwise reclassifying the memberships in the corporation, if any, following its conversion into shares and other securities, obligations, rights to acquire shares or other securities, cash, other property, or any combination of the foregoing;

            (3)    Any desired amendments to the articles of incorporation or bylaws of the corporation following its conversion; and

            (4)    If the domestic nonprofit corporation is to be converted to a foreign business corporation, a statement of the jurisdiction in which the corporation will be incorporated after the conversion.

    (d) The plan of for-profit conversion may also include a provision that the plan may be amended prior to filing articles of for-profit conversion, except that subsequent to approval of the plan by the members the plan may not be amended without the approval of the members to change:

            (1)    The amount or kind of shares and other securities, obligations, rights to acquire shares or other securities, cash, or other property to be received by the members under the plan;

            (2)    The articles of incorporation to be in effect immediately following the conversion; or

            (3)    Any of the other terms or conditions of the plan if the change would adversely affect any of the members in any material respect.

    (e) If any debt security, note, or similar evidence of indebtedness for money borrowed, whether

secured or unsecured, or a contract of any kind, issued, incurred, or executed by a domestic nonprofit corporation before the effective date of this Act contains a provision applying to a merger of the corporation and the document does not refer to a for-profit conversion of the corporation, the provision shall be deemed to apply to a for-profit conversion of the corporation until such time as the provision is amended subsequent to that date.

    (f) The attorney general shall be provided with notice of the proposed for-profit conversion at least ten days prior to any conversion.

    Section 24. That the code be amended by adding a NEW SECTION to read:

    In the case of a conversion of a domestic nonprofit corporation to a domestic or foreign business corporation:

            (1)    The plan of for-profit conversion must be adopted by the board of directors;

            (2)    After adopting the plan of for-profit conversion, the board of directors must submit the plan to the members for their approval if there are members entitled to vote on the plan. The board of directors must also transmit to the members a recommendation that the members approve the plan, unless the board of directors makes a determination that because of conflicts of interest or other special circumstances it should not make such a recommendation, in which case the board of directors must transmit to the members the basis for that determination;

            (3)    The board of directors may condition its submission of the plan of for-profit conversion to the members on any basis;

            (4)    If the approval of the members is to be given at a meeting, the corporation must notify each member of the meeting of members at which the plan of for-profit conversion is to be submitted for approval. The notice must state that the purpose, or one of the purposes, of the meeting is to consider the plan and must contain or be accompanied by a copy or summary of the plan. The notice shall include or be accompanied by a copy of the proposed articles of incorporation to be in effect immediately after the for-profit conversion;

            (5)    Unless the articles of incorporation, or the board of directors acting pursuant to subdivision (3), require a greater vote or a greater number of votes to be present, the approval of the plan of for-profit conversion by the members requires the approval of each class of members of the corporation voting as a separate class at a meeting at which a quorum of the class exists; and

            (6)    If any provision of the articles of incorporation, bylaws, or an agreement to which any of the directors or members are parties, adopted or entered into before the effective date of this Act, applies to a merger of the corporation and the document does not refer to a for-profit conversion of the corporation, the provision shall be deemed to apply to a for-profit conversion of the corporation until such time as the provision is amended subsequent to that date.

    Section 25. That the code be amended by adding a NEW SECTION to read:

    (a) Articles of for-profit conversion must be signed on behalf of the converting corporation by any officer or other duly authorized representative. The articles must set forth:

            (1)    If the surviving corporation is a domestic business corporation, the name of the corporation immediately before the filing of the articles of for-profit conversion and if that name does not satisfy the requirements of the business corporation act, or the corporation

desires to change its name in connection with the conversion, a name that satisfies the requirements of the business corporation act;

            (2)    If the surviving corporation is a foreign business corporation, its name after the conversion and its jurisdiction of incorporation; and

            (3)    A statement that the plan of for-profit conversion was duly approved by the members in the manner required by this Act and the articles of incorporation.

    (b) If the surviving corporation is a domestic business corporation, the articles of for-profit conversion shall either contain all of the provisions that the business corporation act requires to be set forth in the articles of incorporation of a domestic business corporation and any other desired provisions permitted by the business corporation act, or shall have attached articles of incorporation that satisfy the requirements of the business corporation act. In either case, provisions that would not be required to be included in restated articles of incorporation of a domestic business corporation may be omitted, except that the name and address of the initial registered agent of the business corporation must be included.

    (c) The articles of for-profit conversion must be delivered to the Office of the Secretary of State for filing.

    Section 26. That the code be amended by adding a NEW SECTION to read:

    (a) Except as otherwise prohibited by law, when a conversion of a domestic nonprofit corporation to a domestic or foreign business corporation becomes effective:

            (1)    The title to all real and personal property, both tangible and intangible, of the corporation remains in the corporation without reversion or impairment;

            (2)    The liabilities of the corporation remain the liabilities of the corporation;

            (3)    An action or proceeding pending against the corporation continues against the corporation as if the conversion had not occurred;

            (4)    The articles of incorporation of the domestic or foreign business corporation become effective;

            (5)    The memberships of the corporation are reclassified into shares or other securities, obligations, rights to acquire shares or other securities, or into cash or other property in accordance with the plan of conversion, and the members are entitled only to the rights provided in the plan of for-profit conversion; and

            (6)    The corporation is deemed to:

            (i)    Be a domestic or foreign business corporation for all purposes; and

            (ii)    Be the same corporation without interruption as the nonprofit corporation.

    (b) The personal liability of a member in a domestic nonprofit corporation that converts to a domestic business corporation is as follows:

            (1)    The conversion does not discharge any personal liability of the member as a member of the nonprofit corporation to the extent any such personal liability arose before the effective time of the articles of for-profit conversion;

            (2)    The member does not have personal liability for any debt, obligation, or liability of the

business corporation that arises after the effective time of the articles of for-profit conversion;

            (3)    The laws of this state continue to apply to the collection or discharge of any personal liability preserved by subdivision (1), as if the conversion had not occurred;

            (4)    The member has whatever rights of contribution from other members are provided by the laws of this state with respect to any personal liability preserved by subdivision (1), as if the conversion had not occurred.

    (c) A member who becomes subject to personal liability for some or all of the debts, obligations, or liabilities of the business corporation has personal liability only for those debts, obligations, or liabilities of the business corporation that arise after the effective time of the articles of for-profit conversion.

    Section 27. That the code be amended by adding a NEW SECTION to read:

    (a) Unless otherwise provided in a plan of for-profit conversion of a domestic nonprofit corporation, after the plan has been adopted and approved, and at any time before the for-profit conversion has become effective, it may be abandoned by the board of directors without action by the members.

    (b) If a for-profit conversion is abandoned under paragraph (a) after articles of for-profit conversion are filed with the Office of the Secretary of State but before the for-profit conversion has become effective, a statement that the for-profit conversion has been abandoned in accordance with this section, signed by an officer or other duly authorized representative, must be delivered to the Office of the Secretary of State for filing prior to the effective date of the for-profit conversion. The statement takes effect upon filing and the for-profit conversion is abandoned and does not become effective.

    Section 28. That the code be amended by adding a NEW SECTION to read:

    A foreign business corporation may become a domestic nonprofit corporation if the domestication and conversion is permitted by the laws of the foreign jurisdiction.

    Section 29. That the code be amended by adding a NEW SECTION to read:

    (a) After the conversion of a foreign business corporation to a domestic nonprofit corporation is authorized as required by the laws of the foreign jurisdiction, articles of domestication and conversion shall be signed by any officer or other duly authorized representative. The articles shall set forth:

            (1)    The name of the corporation immediately before the filing of the articles of domestication and conversion and, if that name is unavailable for use in this state or the corporation desires to change its name in connection with the domestication and conversion, a name that satisfies the requirements §§ 47-22-7 and 47-22-8.1;

            (2)    The jurisdiction of incorporation of the corporation immediately before the filing of the articles of domestication and conversion and the date the corporation was incorporated in that jurisdiction; and

            (3)    A statement that the domestication and conversion of the corporation in this state was duly authorized as required by the laws of the jurisdiction in which the corporation was incorporated immediately before its domestication and conversion in this state.

    (b) The articles of domestication and conversion shall contain all of the provisions required to

be contained in the articles of incorporation of a nonprofit corporation as set forth in § 47-22-6. The name of the domesticated corporation must satisfy the requirements of §§ 47-22-7 and 47-2-2-8.1.

    (c) The articles of domestication and conversion must be delivered to the Office of the Secretary of State for filing.

    Section 30. That the code be amended by adding a NEW SECTION to read:

    (a) When a domestication and conversion of a foreign business corporation to a domestic nonprofit corporation becomes effective:

            (1)    The title to all real and personal property, both tangible and intangible, of the corporation remains in the corporation without reversion or impairment;

            (2)    The liabilities of the corporation remain the liabilities of the corporation;

            (3)    An action or proceeding pending against the corporation continues against the corporation as if the domestication and conversion had not occurred;

            (4)    The articles of domestication and conversion, or the articles of incorporation attached to the articles of domestication and conversion, constitute the articles of incorporation of the corporation;

            (5)    Memberships, securities, obligations, rights to acquire memberships or securities of the corporation, or cash or other property shall be issued or paid as provided pursuant to the laws of the foreign jurisdiction; and

            (6)    The corporation is deemed to:

            (i)    Be a domestic corporation for all purposes; and

            (ii)    Be the same corporation without interruption as the foreign business corporation.

    (b) The personal liability of a shareholder of the foreign business corporation who becomes a member of the domestic nonprofit corporation in the domestication and conversion is as follows:

            (1)    The domestication and conversion does not discharge any personal liability under the laws of the foreign jurisdiction to the extent any such personal liability arose before the effective time of the articles of domestication and conversion;

            (2)    The member does not have personal liability under the laws of the foreign jurisdiction for any debt, obligation, or liability of the corporation that arises after the effective time of the articles of domestication and conversion;

            (3)    The provisions of the laws of the foreign jurisdiction continue to apply to the collection or discharge of any personal liability preserved by subdivision (1), as if the domestication and conversion had not occurred;

            (4)    The member has whatever rights of contribution from other members are provided by the laws of the foreign jurisdiction with respect to any personal liability preserved by subdivision (1), as if the domestication and conversion had not occurred.

    (c) A shareholder of a foreign business corporation who becomes subject to personal liability for some or all of the debts, obligations, or liabilities of the corporation as a result of its domestication and conversion in this state has personal liability only for those debts, obligations, or liabilities of the corporation that arise after the effective time of the articles of domestication and conversion.

    Section 31. That the code be amended by adding a NEW SECTION to read:

    If the domestication and conversion of a foreign business corporation to a domestic nonprofit corporation is abandoned in accordance with the laws of the foreign jurisdiction after articles of domestication and conversion have been filed with the Office of the Secretary of State, a statement that the domestication and conversion has been abandoned, signed by an officer or other duly authorized representative, must be delivered to the Office of the Secretary of State for filing. The statement takes effect upon filing and the domestication and conversion is abandoned and does not become effective.

    Section 32. That the code be amended by adding a NEW SECTION to read:

    (a) Except as otherwise prohibited by law, when a conversion under sections 28 to 37, inclusive, of this Act, becomes effective:

            (1)    The title to all real and personal property, both tangible and intangible, of the converting entity remains in the surviving entity without reversion or impairment;

            (2)    The liabilities of the converting entity remain the liabilities of the surviving entity;

            (3)    An action or proceeding pending against the converting entity continues against the surviving entity as if the conversion had not occurred;

            (4)    In the case of a surviving entity that is a filing entity, its articles of incorporation or governing documents and rules become effective;

            (5)    The memberships or interests of the converting entity are reclassified into memberships, interests, other securities, obligations, rights to acquire memberships, interests or securities, or into cash or other property in accordance with the plan of conversion; and the members or of the converting entity are entitled only to the rights provided to them under the terms of the conversion and to any appraisal rights they may have under the governing law of the converting entity; and

            (6)    The surviving entity is deemed to:

            (i)    Be incorporated or organized under and subject to the governing law of the converting entity for all purposes; and

            (ii)    Be the same nonprofit corporation or unincorporated entity without interruption as the converting entity.

    (b) A member who is subject to personal liability for some or all of the debts, obligations, or liabilities of the surviving entity has personal liability only for those debts, obligations, or liabilities of the surviving entity that arise after the effective time of the articles of entity conversion.

    Section 33. That the code be amended by adding a NEW SECTION to read:

    (a) Unless otherwise provided in a plan of entity conversion of a domestic nonprofit corporation, after the plan is adopted and at any time before the entity conversion has become effective, it may be abandoned by the board of directors without action by the members.

    (b) If an entity conversion is abandoned after articles of entity conversion are filed with the Office of the Secretary of State but before the entity conversion becomes effective, a statement that the entity conversion has been abandoned in accordance with this section, signed by an officer or other duly authorized representative, must be delivered to the Office of the Secretary of State for filing prior to the effective date of the entity conversion. Upon filing, the statement takes effect and

the entity conversion is abandoned and does not become effective.

    Section 34. That the code be amended by adding a NEW SECTION to read:

    A domestic business corporation may become a domestic nonprofit corporation pursuant to a plan of nonprofit conversion only if incorporating pursuant to this Act is not prohibited by any other law of this state. If the law of a domestic business corporation does not provide procedures for the approval of either a nonprofit conversion or a merger, a plan of nonprofit conversion must be adopted and approved, and the conversion effectuated in accordance with this Act.

    Section 35. That the code be amended by adding a NEW SECTION to read:

    (a) The plan of nonprofit conversion must be adopted by the shareholders. The plan for nonprofit conversion must include:

            (1)    The terms and conditions of the conversion;

            (2)    The manner and basis of reclassifying the shareholders in the corporation;

            (3)    Any desired amendments to the articles of incorporation or bylaws of the corporation following its conversion;

            (4)    The articles of incorporation to be in effect immediately following the conversion; and

            (5)    Any of the terms or conditions of the plan if the change would adversely affect any of the shareholders in any material respect.

    The plan for nonprofit conversion may also include a provision that the plan may be amended prior to filing articles of nonprofit conversion.

    (b) After the plan for nonprofit conversion is authorized, the articles of conversion must be signed on behalf of the converting corporation by any officer or other duly authorized representative.

    The articles shall set forth:

            (1)    The name of the corporation immediately before the filing of the articles of conversion and, if that name is unavailable for use in this state or the corporation desires to change its name in connection with the conversion, a name that satisfies the requirements of §§ 47-22-7 and 47-2-8.1;

            (2)    The jurisdiction of incorporation of the corporation immediately before the filing of the articles of conversion and the date the corporation was incorporated; and

            (3)    A statement that the conversion of the corporation in this state was duly authorized as required by the laws of this state.

    (c) The articles of conversion shall contain all of the provisions required to be contained in the articles of incorporation of a nonprofit corporation as set forth in § 47-22-6 and any other desired provisions permitted to be included. Provisions that would not be required to be included in restated articles of incorporation may be omitted, except that the name and address of the initial registered agent of the domestic business corporation must be included.

    (d) The articles of nonprofit conversion must be delivered to the Office of the Secretary of State for filing.


    Section 36. That the code be amended by adding a NEW SECTION to read:

    (a) When a conversion of a domestic business corporation to a domestic nonprofit corporation becomes effective:

            (1)    The title to all real and personal property, both tangible and intangible, of the corporation remains in the corporation without reversion or impairment;

            (2)    The liabilities of the corporation remain the liabilities of the corporation;

            (3)    An action or proceeding pending against the corporation continues against the corporation as if the conversion had not occurred;

            (4)    The articles of conversion, or the articles of incorporation attached to the articles of conversion, constitute the articles of incorporation of the corporation;

            (5)    Memberships, securities, obligations, rights to acquire memberships or securities of the corporation, or cash or other property shall be issued or paid as provided pursuant to the laws of this state; and

            (6)    The corporation is deemed to:

            (i)    Be a domestic nonprofit corporation for all purposes; and

            (ii)    Be the same corporation without interruption.

    (b) The personal liability of a shareholder of the domestic business corporation who becomes a member of the domestic nonprofit corporation in the conversion is as follows:

            (1)    The conversion does not discharge any personal liability under the laws of this state to the extent any such personal liability arose before the effective time of the articles of conversion;

            (2)    The member does not have personal liability under the laws of this state for any debt, obligation, or liability of the corporation that arises after the effective time of the articles of conversion;

            (3)    The provisions of the laws of this state continue to apply to the collection or discharge of any personal liability preserved by subdivision (1), as if the conversion had not occurred;

            (4)    The member has whatever rights of contribution from other members are provided by the laws of this state with respect to any personal liability preserved by subdivision (1), as if the conversion had not occurred.

    (c) A shareholder of a domestic business corporation who becomes subject to personal liability for some or all of the debts, obligations, or liabilities of the corporation as a result of its conversion in this state has personal liability only for those debts, obligations, or liabilities of the corporation that arise after the effective time of the articles of conversion.

    Section 37. That the code be amended by adding a NEW SECTION to read:

    If the conversion of a domestic business corporation to a domestic nonprofit corporation is abandoned in accordance with the laws of this state after articles of conversion have been filed with the Office of the Secretary of State, a statement that the conversion has been abandoned, signed by an officer or other duly authorized representative, must be delivered to the Office of the Secretary of State for filing. The statement takes effect upon filing and the conversion is abandoned and does

not become effective.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\221.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\222.wpd
CHAPTER 222

(SB 46)

Uniform securities act filing fees revised
for certain management companies.


        ENTITLED, An Act to revise the notice filing fee for open-end management companies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 47-31B-302 be amended to read:

    47-31B-302. (a) Required filing of records. With respect to a federal covered security, as defined in Section 18(b)(2) of the Securities Act of 1933 (15 U.S.C. § 77r(b)(2)), that is not otherwise exempt under §§ 47-31B-201 through 47-31B-203, a rule adopted or order issued under this chapter may require the filing of any or all of the following records:

            (1)    Before the initial offer of a federal covered security in this state, all records that are part of a federal registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933 and a consent to service of process complying with § 47-31B-611 signed by the issuer and the payment of a fee of five hundred dollars for open-end management companies with total net assets of fifty million dollars or less, or a filing fee of one thousand dollars for open-end management companies with total net assets of more than fifty million dollars but less than two hundred fifty million dollars, or a filing fee of two thousand dollars for open-end management companies with total net assets equal to or greater than two hundred fifty million dollars; two hundred and fifty dollars for any closed end management companies company; or a filing fee of one hundred fifty dollars for any unit investment trusts trust. A renewal filing is required annually, including those documents that the director by rule or order may require and a fee as provided in this subparagraph a(1). An initial or renewal filing includes a separate fee for each portfolio, series, class, or other designation. An initial or renewal filing shall include the most recent financial statement showing the nets assets of each portfolio, series, class, or other designation, unless the maximum fee of two thousand dollars is paid.

            (2)    After the initial offer of the federal covered security in this state, all records that are part of an amendment to a federal registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933. Any amendment that includes a name change to any filing, including any portfolio, series, class, or other designation, must include a fifty dollar filing fee for each name change of each portfolio, series, class, or other designation.

    (b) Notice filing effectiveness and renewal. A notice filing under subsection (a) is effective for one year commencing on the later of the notice filing or the effectiveness of the offering filed with the Securities and Exchange Commission. On or before expiration, the issuer may renew a notice filing by filing a copy of those records filed by the issuer with the Securities and Exchange Commission that are required by rule or order under this chapter to be filed and by paying a renewal fee as set forth in subsection a(1). A previously filed consent to service of process complying with § 47-31B-611 may be incorporated by reference in a renewal. A renewed notice filing becomes

effective upon the expiration of the filing being renewed.

    (c) Notice filings for federal covered securities under Section 18(b)(4) (D). With respect to a security that is a federal covered security under Section 18(b)(4)(D) of the Securities Act of 1933 (15 U.S.C. § 77r(b)(4)(D)), a rule under this chapter may require a notice filing by or on behalf of an issuer to include a copy of Form D, including the Appendix, as promulgated by the Securities and Exchange Commission, and a consent to service of process complying with § 47-31B-611 signed by the issuer not later than fifteen days after the first sale of the federal covered security in this state and the payment of a fee of two hundred fifty dollars; and the payment of a fee of two hundred seventy-five dollars for any late filing.

    (d) Stop orders. Except with respect to a federal security under Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C. § 77r(b)(1)), if the director finds that there is a failure to comply with a notice or fee requirement of this section, the director may issue a stop order suspending the offer and sale of a federal covered security in this state. If the deficiency is corrected, the stop order is void as of the time of its issuance and no penalty may be imposed by the director.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\222.wpd

PUBLIC UTILITIES AND CARRIERS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\223.wpd
CHAPTER 223

(SB 127)

Utility placement across a railroad right-of-way, regulated.


        ENTITLED, An Act to revise certain provisions regarding the requirements for placement of a utility facility across a railroad right-of-way.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 49-16A-100.2 be amended to read:

    49-16A-100.2. Terms used in §§ 49-16A-100.2 to 49-16A-100.10, inclusive, mean:

            (1)    "Railroad," any nonpublic association or corporation, or other entity, engaged in operating a common carrier by rail or any other entity responsible for the management of crossings or collection of fees for the railroad;

            (2)    "Rural water system," an entity engaged in the treatment, distribution, and sale of water to rural consumers that was created by chapters 34A-5, 46A-3A, or 46A-9 or any nonprofit corporation engaged in such activity;

            (3)    "Utility," electric utility, public utility, gas utility, municipal utility, municipal power agency, joint action agency, consumers power district, pipeline company, telecommunications company, and rural water system;

            (4)    "Crossing," the construction, operation, repair, or maintenance of a facility, over, under, or across a railroad right-of-way by a utility. The term does not include longitudinal

occupancy of railroad right-of-way;

            (5)    "Facility," any item of personal property placed over, across, or underground for use in connection with the storage or conveyance of water; sewage; electronic, telephone, or telegraphic communications; fiber optics; cablevision; electric energy; oil; gas; hazardous liquids; or other substances including pipes, sewers, conduits, cables, valves, lines, wires, manholes, or attachments;

            (6)    "Special circumstances," includes the railroad crossing's relationship to other property, location of the crossing in urban or other developed areas, the existence of unique topography or natural resources, or other dangers inherent in the particular crossing.

    Section 2. That § 49-16A-100.3 be amended to read:

    49-16A-100.3. Any utility that intends to place a facility across a railroad right-of-way shall request prior permission for such provide to the railroad notice of the placement at least thirty days before the placement from the railroad. The request notice shall be in the form of include a completed crossing application, including a drawing showing the location of the proposed crossing and the railroad's property, tracks, and wires that the utility will cross. The utility shall submit the crossing application on a form provided or approved by the railroad, if available. The crossing application shall be sent to the railroad by certified mail, return receipt requested. The application shall be accompanied by the crossing fee as set forth in § 49-16A-100.5, and a certificate of insurance as required by § 49-16A-100.6.

    Section 3. That § 49-16A-100.4 be amended to read:

    49-16A-100.4. Beginning thirty Thirty days after the receipt by the railroad of the completed crossing application, the fee, and certificate of insurance, the utility may commence the construction of the crossing, unless the railroad notifies the utility in writing that the information contained in the crossing application is incomplete or inadequate or that special circumstances exist. For purposes of §§ 49-16A-100.2 to 49-16A-100.10, inclusive, special circumstances include the railroad crossing's relationship to other property, location of the crossing in urban or other developed areas, the existence of unique topography or natural resources, or other dangers inherent in the particular crossing proposed crossing is a serious threat to the safe operations of the railroad or to the current use of the railroad right-of-way. In all other instances the utility shall be deemed to have authorization to commence construction of the facility.

    Section 4. That § 49-16A-100.5 be amended to read:

    49-16A-100.5. Unless otherwise agreed by the parties, a utility that crosses a railroad right-of-way, other than a crossing within the public right-of-way, shall pay the railroad a one-time standard crossing fee of seven hundred fifty dollars for each crossing. The standard crossing fee is in lieu of any license, permit, application, processing fee, or any other fees or charges to reimburse the railroad for the direct expenses incurred by the railroad as a result of the crossing. No other fee may be assessed by the railroad or by any railroad agent, contractor, or assignee to the utility or to any agent or contractor of the utility. The utility shall also reimburse the railroad for any reasonable and necessary flagging expense associated with a crossing, based on the railroad traffic at the crossing, in addition to the standard crossing fee. No crossing fee is required if the crossing is located within a public right-of-way.

    Section 5. That § 49-16A-100.6 be amended to read:

    49-16A-100.6. The certificate of insurance or coverage submitted by a municipality shall include commercial general liability insurance or equivalent form with a limit of not less than one million dollars for each occurrence and an aggregate of not less than two million dollars. The certificate of insurance submitted by any other utility other than a gas or hazardous materials pipeline utility shall

include commercial general liability insurance with a combined single limit of a minimum of two million dollars for each occurrence and an aggregate limit of at least four million dollars. The certificate of insurance submitted by a gas or hazardous materials pipeline utility shall include commercial general liability insurance with a combined single limit of a minimum of five million dollars for each occurrence and an aggregate limit of at least ten million dollars. The railroad may require protective liability insurance with a combined single limit of two million dollars for each occurrence and four million dollars aggregate. The coverage may be provided by a blanket railroad protective liability insurance policy if the coverage, including the coverage limits, applies separately to each individual crossing. The coverage shall be required only during the period of construction, repair, or replacement of the facility.

    Section 6. That § 49-16A-100.7 be amended to read:

    49-16A-100.7. If a railroad objects to the adequacy of the information contained in the crossing application or asserts that special circumstances exist proposed crossing due to the proposal being a serious threat to the safe operations of the railroad or to the current use of the railroad right-of-way, the railroad shall provide notice of the objection and the specific basis of the objection to the utility by certified mail, return receipt requested. If the parties are unable to resolve the objection, either party may petition the Public Utilities Commission for additional requirements or for modification of the standard crossing fee resolution of the disputed crossing application within sixty thirty days from receipt of the objection. Before filing a petition, the parties shall confer in good faith in an attempt to resolve the objection. If a petition is filed, the Public Utilities Commission shall determine, after notice and opportunity for hearing, whether special circumstances exist that necessitate additional requirements for the placement or modification of the standard crossing fee must issue an order within one hundred twenty sixty days of filing of the petition, during which time the crossing shall be stayed. The order may be appealed pursuant to chapter 1-26. The Public Utilities Commission shall assess its costs associated with a petition equitably against the parties.

    Section 7. That § 49-16A-100.8 be amended to read:

    49-16A-100.8. If a railroad asserts in writing by certified mail return receipt requested that special circumstances exist, or imposes additional requirements upon a utility for crossing its lines, other than the proposed crossing being a serious threat to the safe operations of the railroad or to the current use of the railroad right-of-way, the utility may object to one or more of the requirements. In such event, the utility shall provide notice of the objection and the specific basis of the objection to the railroad by certified mail, return receipt requested. If the parties are unable to resolve the objection, either party may petition the Public Utilities Commission for resolution or modification of the additional requirements objection within sixty thirty days from receipt of the objection. Before filing a petition, the parties shall confer in good faith in an attempt to resolve the objection. If a petition is filed, the Public Utilities Commission, within one hundred twenty ninety days of filing the petition, shall determine, after notice and opportunity for hearing, whether special circumstances exist that necessitate additional requirements for the placement of the crossing. The order may be appealed pursuant to chapter 1-26. The Public Utilities Commission shall assess its costs associated with a petition equitably against the parties.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\223.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\224.wpd
CHAPTER 224

(HB 1064)

Damages and bad acts to tourist railroads that carry passengers.


        ENTITLED, An Act to apply certain penalties regarding damages, tampering, and malicious acts to

certain railroads that carry passengers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 49-16A be amended by adding a NEW SECTION to read:

    The provisions of §§ 49-16A-107 and 49-16A-108 apply to a tourist railroad carrier. A tourist railroad carrier is any person who is engaged in the business of selling tickets or admission to transport passengers by rail in this state primarily as a visitor attraction and the person owns, leases, or uses a minimum of five miles of railroad track.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\224.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\225.wpd
CHAPTER 225

(SB 35)

References to federal motor carrier regulations updated.


        ENTITLED, An Act to update references to certain federal motor carrier regulations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 49-28A-3 be amended to read:

    49-28A-3. The state hereby adopts Title 49 of the Code of Federal Regulations, subtitle B, chapter I, subchapter A, part 107 (subparts F and G only) and subchapter C, parts 171 to 180, inclusive, as amended through January 1, 2015 2016, and Title 49 of the Code of Federal Regulations, subtitle B, chapter III, subchapter B, part 387 and parts 390 to 397, inclusive, as amended through January 1, 2015 2016, with the following modifications:

            (1)    All references to interstate operations shall also include intrastate operations except that drivers and motor carriers operating intrastate vehicles and combinations of vehicles with three axles or less or with a gross vehicle weight rating of not more than twenty-six thousand pounds which are not used to transport hazardous materials requiring placarding under part 177, or designed to transport more than fifteen passengers, including the driver, are not subject to parts 390-397;

            (2)    For the purposes of part 391.11(b)(1), a driver shall be at least twenty-one years old if engaged in interstate commerce, or transporting hazardous material of a type or quantity requiring placarding under part 177, or operating a vehicle designed to transport more than fifteen passengers, including the driver. All other drivers shall be at least eighteen years of age;

            (3)    Unless required by an employer to be medically certified under Title 49 of the Code of Federal Regulations, intrastate drivers are exempt from the physical requirements of part 391.41.

    Any violation of part 387 and parts 390 to 396, inclusive, the motor carrier safety requirements governing the qualifications of drivers, driving of motor vehicles, parts and accessories necessary for safe operation, notification and reporting of accidents, assistance with investigations and special studies, hours of service of drivers, inspection, repair, and maintenance is a Class 2 misdemeanor. Any violation of the hazardous materials regulations pertaining to registration of cargo tank motor

vehicles, registration of persons who offer or transport hazardous materials, general information, regulations and definitions, hazardous materials tables, hazardous materials communication regulations, and test and inspection marking requirements found in parts 107 (subparts F and G only), 171, 172, and 178 to 180, inclusive, is a Class 2 misdemeanor. Any violation of the hazardous materials regulations pertaining to packaging, prohibited shipments, loading and unloading, segregation and separation, retesting and inspection of cargo tanks, and other carriage by regulations found in parts 173 to 180, inclusive, or violation of the driving and parking rules in part 397, is a Class 1 misdemeanor.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\225.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\226.wpd
CHAPTER 226

(HB 1038)

Federal regulations regarding pipeline safety inspections updated.


        ENTITLED, An Act to update certain citations to federal regulations regarding pipeline safety inspections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That subdivision (8) of § 49-34B-1 be amended to read:

            (8)    "Interstate pipeline," pipeline facilities used in the transportation of gas which are subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act, United States Code, Title 15, sections 717 to 717z, inclusive, as amended to January 12, 2012 January 1, 2016, except that it does not include any pipeline facilities within this state which transport gas from an interstate gas pipeline to a direct sales customer within this state purchasing gas for its own consumption;

    Section 2. That § 49-34B-2 be amended to read:

    49-34B-2. Any rural gathering facility as defined in 49 C.F.R. 192.8 as of January 12, 2012 amended to January 1, 2016, is exempt from this chapter.

    Section 3. That § 49-34B-3 be amended to read:

    49-34B-3. There is created a pipeline safety inspection program. The federal safety standards adopted as Code of Federal Regulations, title 49 appendix, parts 191, 192, 193, and 199 as amended to January 12, 2012 January 1, 2016, are adopted as minimum safety standards for this chapter. The commission shall establish and implement a compliance program to enforce these safety standards. The program shall be established and implemented in a manner that fully complies with requirements for state certification under the United States Code, title 49, section 60105, as amended to January 12, 2012 January 1, 2016.

    Section 4. That § 49-34B-4 be amended to read:

    49-34B-4. The commission may, by rules promulgated pursuant to chapter 1-26, establish safety standards, but not more stringent than federal safety standards as provided by § 49-34B-3, for the intrastate transportation of gas and gas pipeline facilities. The standards may apply to the design, installation, inspection, testing, construction, extension, operation, replacement, and maintenance of gas pipeline facilities. Standards affecting the design, installation, construction, initial inspection,

and initial testing do not apply to pipeline facilities in existence on the date the standards are adopted by either this state or the federal government. The safety standards shall be practicable and designed to meet the need for pipeline safety. In prescribing the standards, the commission shall consider:

            (1)    Relevant available pipeline safety data;

            (2)    Whether the standards are appropriate for the particular type of pipeline transportation of gas;

            (3)    The reasonableness of any proposed standards;

            (4)    The extent to which the standard will contribute to public safety; and

            (5)    The existing standards established by the secretary of the United States Department of Transportation pursuant to the United States Code, title 49, section 60101 et seq. as amended to January 12, 2012 January 1, 2016.

    Section 5. That § 49-34B-13 be amended to read:

    49-34B-13. No person is subject to civil penalties under this chapter if prior civil penalties have been imposed under the United States Code, title 49, section 60101 et seq. as amended to January 12, 2012 January 1, 2016, for conduct that may give rise to a violation of both acts. Nothing in this chapter limits the powers of the commission, or precludes the pursuit of any other administrative, civil, injunctive, or criminal remedies by the commission or any other person. Administrative remedies need not be exhausted in order to proceed under this chapter. The remedies provided by this chapter are in addition to those provided under existing statutory or common law.

    Section 6. That § 49-34B-14 be amended to read:

    49-34B-14. The commission may, to the extent authorized by agreement with the secretary of the United States Department of Transportation, act as agent for the secretary of transportation to implement the United States Code, title 49, section 60101 et seq. as amended to January 12, 2012 January 1, 2016, and any federal pipeline safety regulations promulgated thereto with respect to interstate gas pipelines located within this state, as necessary to obtain annual federal certification. The commission shall, to the extent authorized by federal law, inspect pipelines in the state as authorized by the provisions of this chapter.

    Section 7. That § 49-34B-15 be amended to read:

    49-34B-15. The commission may seek and accept federal designation of the commission's pipeline inspectors as federal agents for the purposes of inspection pursuant to the United States Code, title 49, section 60101 et seq. as amended to January 12, 2012 January 1, 2016, and federal rules adopted to implement those acts. If the Department of Transportation delegates inspection authority to the state as provided in this section, the commission shall do what is necessary to carry out its delegated federal authority.

    Section 8. That § 49-34B-19 be amended to read:

    49-34B-19. The commission may promulgate pipeline inspection and safety rules, pursuant to chapter 1-26, to the extent necessary to enable the state to qualify for annual federal certification to operate the federal pipeline inspection program of intrastate and interstate gas pipelines as authorized by the United States Code, title 49, section 60101 et seq. as amended to January 12, 2012 January 1, 2016.

    Section 9. That § 49-34B-22 be amended to read:


    49-34B-22. All information reported to or obtained by the commission under this chapter that contains or relates to a trade secret referred to in United States Code, title 18, section 1905, as amended to January 12, 2012 January 1, 2016, or that is granted by chapter 37-29 is confidential for the purpose of that section, except that the information may be disclosed to the commission or commission employee or agent concerned with enforcing this chapter. Nothing in this section authorizes the withholding of information by the commission from a committee of the Legislature.

     Signed February 12, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\226.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\227.wpd
CHAPTER 227

(HB 1046)

Railroad trust fund appropriation.


        ENTITLED, An Act to make an appropriation to the railroad trust fund and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of one million dollars ($1,000,000), or so much thereof as may be necessary, to the railroad trust fund created by § 49-16C-1 for the purposes of planning, enlarging, maintaining, equipping, and protecting railroads and railroad facilities.

    Section 2. The secretary of the Department of Transportation shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 15, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\227.wpd

BANKS AND BANKING

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\228.wpd
CHAPTER 228

(HB 1042)

Appropriation to establish the trust company receivership and
liquidation captive insurance company fund.


        ENTITLED, An Act to establish the trust company receivership and liquidation captive insurance company fund and to make an appropriation therefor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the banking special revenue fund established in § 51A-2-30 the sum of two million two hundred twenty thousand dollars ($2,220,000), or so much thereof as may be necessary, to the Department of Labor and Regulation for the purpose of making a grant to a captive insurance company controlled entirely by the state for the purpose of trust company receivership and liquidation coverage.

    Section 2. The secretary of the Department of Labor and Regulation shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. The provisions of § 4-8-21 do not apply to the funds appropriated by this Act.

    Section 4. There is hereby established in the state treasury the trust company receivership and liquidation captive insurance company fund. The Department of Labor and Regulation may enter into an agreement with a captive insurance company for the management of the fund. Money in the fund may be used to pay for trust company receivership and liquidation costs for trust companies chartered and regulated by the Division of Banking as well as administrative and reinsurance costs for the fund. Interest earned on money in the fund shall be deposited into the fund. Unexpended money and any interest that may be credited to the fund shall remain in the fund. Any money in the trust company receivership and liquidation captive insurance company fund is continuously appropriated. Any money deposited into and distributed from the fund shall be set forth in an informational budget as described in § 4-7-7.2.

     Signed March 14, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\228.wpd

DEBTOR AND CREDITOR

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\229.wpd
CHAPTER 229

(SB 57)

Contracts between a debtor and creditor.


        ENTITLED, An Act to redefine the term, written agreement, relating to contracts between a debtor and creditor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 54-3-1.1 be amended to read:

    54-3-1.1. Unless a maximum interest rate or charge is specifically established elsewhere in the code, there is no maximum interest rate or charge, or usury rate restriction between or among persons, corporations, limited liability companies, estates, fiduciaries, associations, or any other entities if they establish the interest rate or charge by written agreement. A written agreement is a document in writing, whether in physical or electronic form, in which the parties have demonstrated their agreement to the terms and conditions of an extension of credit, including the rate of interest. A written agreement includes the contract created by § 54-11-9.

     Signed March 7, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\229.wpd



Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\230.wpd
CHAPTER 230

(HB 1242)

A representative may request a security freeze
for a protected person's credit report.


        ENTITLED, An Act to authorize certain persons to request a security freeze on the credit report of a protected consumer.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Protected consumer," a person who is under the age of sixteen years at the time a request for the placement of a security freeze is made or an incapacitated person or a protected person for whom a guardian or conservator has been appointed;

            (2)    "Record," a compilation of information that is created by a consumer reporting agency solely for the purpose of complying with this section, identifies a protected consumer, and may not be used to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living;

            (3)    "Representative," a person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer;

            (4)    "Security freeze," a notice placed on a consumer's credit report that prohibits a consumer reporting agency from releasing the consumer's credit report relating to the extension of credit involving that consumer's report, without the express authorization of the protected person's representative;

            (5)    "Sufficient proof of authority," documentation that shows a representative has authority to act on behalf of a protected consumer and includes an order issued by a court of law, a lawfully executed and valid power of attorney, or a notarized statement signed by a representative that expressly describes the authority of the representative to act on behalf of a protected consumer;

            (6)    "Sufficient proof of identification," information or documentation that identifies a protected consumer or a representative of a protected consumer and includes a social security number or a copy of a social security card issued by the social security administration, a certified or official copy of a birth certificate, or a copy of a driver license, an identification card issued by the motor vehicle administration, or any other government issued identification.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    A consumer reporting agency shall place a security freeze for a protected consumer if the agency receives a request from the protected consumer's representative for the placement of the security freeze under this section and the protected consumer's representative:

            (1)    Submits the request to the agency in the manner specified by the agency;

            (2)    Provides to the agency sufficient proof of identification of the protected consumer and the representative;

            (3)    Provides to the agency sufficient proof of authority to act on behalf of the protected consumer; and

            (4)    Pays to the agency a fee as provided in section 9 of this Act.

    If a consumer reporting agency does not have a file pertaining to a protected consumer when the consumer reporting agency receives a request under this section, the consumer reporting agency shall create a record for the protected consumer.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    This Act does not apply to the use of a protected consumer's credit report or record by:

            (1)    A person administering a credit file monitoring subscription service to which the protected consumer has subscribed or the representative of the protected consumer has subscribed on behalf of the protected consumer;

            (2)    A person providing the protected consumer or the protected consumer's representative with a copy of the protected consumer's credit report on request of the protected consumer or the protected consumer's representative; or

            (3)    A check services or fraud prevention services company that issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar payment methods;

            (4)    A deposit account information service company that issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine abuse, or similar negative information regarding a consumer to inquiring financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring financial institution;

            (5)    An insurance company for the purpose of conducting its ordinary business;

            (6)    A consumer reporting agency that acts only to resell credit information by assembling and merging information contained in a database of one or more consumer reporting agencies and does not maintain a permanent database of credit information from which new credit reports are produced; and

            (7)    A consumer reporting agency's database that consists of information used for criminal record information, fraud prevention or detection, personal loss history information, or employment, tenant, or individual background screening, but not for credit granting services.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Within thirty days after receiving a request that meets the requirements of this Act, a consumer reporting agency shall place a security freeze for the protected consumer.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    Unless a security freeze for a protected consumer is removed in accordance with sections 7 or 10 of this Act, a consumer reporting agency may not release the protected consumer's credit report, any information derived from the protected consumer's credit report, or any record created for the

protected consumer.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    A security freeze for a protected consumer placed under section 4 of this Act shall remain in effect until:

            (1)    The protected consumer or the protected consumer's representative requests the consumer reporting agency to remove the security freeze in accordance with section 7 of this Act; or

            (2)    The security freeze is removed in accordance with section 10 of this Act.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    If a protected consumer or a protected consumer's representative wishes to remove a security freeze for the protected consumer, the protected consumer or the protected consumer's representative shall submit a request for the removal of the security freeze to the consumer reporting agency in the manner specified by the agency. If the request is made by the protected consumer, the requestor shall provide to the consumer reporting agency proof that the authority for the protected consumer's representative is no longer valid and sufficient proof of the identification of the protected consumer. If the request is made by the protected consumer's representative, the requestor shall provide to the consumer reporting agency sufficient proof of identification of the protected consumer and the representative, and sufficient proof of authority to act on behalf of the protected consumer.

    The requestor shall pay to the consumer reporting agency a fee as provided in section 9 of this Act.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    Within thirty days after receiving a request that meets the requirements of section 7 of this Act, the consumer reporting agency shall remove the security freeze for the protected consumer.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    A consumer reporting agency may charge a reasonable fee, not exceeding five dollars, for each placement or removal of a security freeze for a protected consumer. However, no consumer reporting agency may charge a fee under this section if the protected consumer's representative provides a police report or affidavit of alleged identity fraud against the protected consumer to the consumer reporting agency, or a request for the placement or removal of a security freeze is for a protected consumer who is under the age of sixteen years at the time of the request, and the agency has a consumer report pertaining to the protected consumer. No consumer reporting agency may charge a fee for any other service performed under this Act.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    A consumer reporting agency may remove a security freeze for a protected consumer or delete a record of a protected consumer if the security freeze was placed or the record was created based on a material misrepresentation of fact by the protected consumer or the protected consumer's representative.

     Signed March 22, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\230.wpd



FIDUCIARIES AND TRUSTS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\231.wpd
CHAPTER 231

(HB 1039)

Trust and trust company oversight revised.


        ENTITLED, An Act to revise various trust and trust company provisions and to establish and regulate South Dakota special spousal trusts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 51A-6A-1 be amended to read:

    51A-6A-1. Terms used in this chapter mean:

            (1)    "Articles," in the case of a corporation, articles of incorporation; in the case of a limited liability company, articles of organization;

            (2)    "Board member," in the case of a corporation, a director; in the case of a limited liability company, a member of the board of managers if manager-managed or board of members if member-managed;

            (3)    "Client," an individual, corporation, association, or other legal entity receiving or benefitting from fiduciary services provided by a trust company or bank;

            (4)    "Commission," the State Banking Commission;

            (5)    "Control," the power, directly or indirectly, to direct the management or policies of a trust company or to vote twenty-five percent or more of any class of voting shares of a trust company;

            (6)    "Director," the director of the Division of Banking;

            (7)    "Fiduciary for hire," acting as an administrator, conservator, custodian, executor, guardian, personal representative, or trustee, for any person, trust, or estate for compensation or gain or in anticipation of compensation or gain;

            (8)    "Financial institution," any bank, national banking association, savings and loan association, or savings bank which has its principal place of business in this state but which does not have trust powers, or which has trust powers, but does not exercise those trust powers;

            (9)    "Governing board," in the case of a corporation, the board of directors; in the case of a limited liability company, the board of managers if manager-managed or board of members if member-managed;

            (10)    "Originating trustee," any trust company, bank, national banking association, savings and loan association, or savings bank which has trust powers and its principal place of business in this state and which places or transfers any fiduciary responsibility to a

contracting trustee in the manner provided in this chapter;

            (10A)    "Out-of-state trust institution," a nondepository corporation, limited liability company, or other similar entity chartered or licensed by the banking regulatory agency of a state, territory, or district, other than South Dakota, to engage in the trust company business in that state, territory, or district under the primary supervision of such regulator.;

            (11)    "Owner," in the case of a corporation, a common stockholder; in the case of a limited liability company, a person who owns ownership units;

            (12)    "Person," an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, or any other form of an entity;

            (12A)    "Public trust company," a trust company that engages in trust company business with the general public by advertising, solicitation, or other means, or a trust company that engages in trust company business but does not fall within the definition of a private trust company established by the commission through rules promulgated pursuant to chapter 1-26. The commission shall consider the size, number of clients served and the family and other relationships among the clients served, complexity, and related safety and soundness issues as it establishes in rule a definition for the term private trust company;

            (13)    "Trust company," a nondepository trust company incorporated or organized under the laws of this state engaged in the trust company business, and any national bank which has its main office in this state, and which has as its sole purpose the conduct of trust business;

            (14)    "Trust company business," engaging in, or representing or offering to engage in, the business of acting as a fiduciary for hire, except that no accountant, attorney, credit union, insurance broker, insurance company, investment advisor, real estate broker or sales agent, savings and loan association, savings bank, securities broker or dealer, real estate title insurance company, or real estate escrow company may be deemed to be engaged in a trust company business with respect to fiduciary services customarily performed by them for compensation as a traditional incident to their regular business activities. Trust company business as defined in this chapter does not constitute banking as defined in subdivision 51A-1-2(4);

            (15)    "Trust service office," any office, agency, or other place of business at which the powers granted to trust companies are exercised either by a trust company other than the place of business specified in a trust company's certificate of authority or within this state by an out-of-state trust institution.

    Section 2. That § 51A-6A-2 be amended to read:

    51A-6A-2. For the purposes of this chapter, confidential information includes the names of stockholders or owners, names and addresses of the members of a private trust company's governing board, ownership information, capital contributions, addresses, business affiliations, state and commission findings through any examination or inquiry of any kind, and any information required to be reported or filed with the director or the commission, and any information or agreement relating to any merger, consolidation, or transfer.

    Section 3. That § 51A-6A-7 be amended to read:

    51A-6A-7. Any three or more persons may organize a public trust company and make and file articles as provided by the laws of this state. Any one or more persons may organize a private trust company and make and file articles as provided by the laws of this state. No trust company may be organized or incorporated to engage in business as such until the articles have been submitted and

approved in accordance with § 51A-6A-4. The name selected for the trust company may not be the name of any other trust company doing business in the state, and the director shall accept or reject the name. However, the approval of a trust company name by the director may not supersede any person's rights pursuant to state or federal trademark law. The articles, in addition to any other information required by law, shall state:

            (1)    That the corporation or limited liability company is formed for the purpose of engaging in the trust company business; and

            (2)    The period for which such corporation or limited liability company is organized, which may be perpetual.

    The articles may contain any other provisions as are consistent with law. The articles shall be subscribed by one or more of the organizers of the proposed trust company and shall be acknowledged by them. The full amount of the capital required by § 51A-6A-19 shall be subscribed before the articles are filed.

    Section 4. That § 51A-6A-11.1 be amended to read:

    51A-6A-11.1. A public trust company shall:

            (1)    Maintain office space in South Dakota for trust company business and for the storage of, and access to, trust company records required by § 51A-6A-30;

            (2)    Hold no less than two quarterly governing board meetings with a majority physically present in South Dakota annually each calendar year;

            (3)    Employ, engage, or contract with at least one trust officer or key employee to provide services for the trust company in South Dakota related to the powers of the company in § 51A-6A-29 and to facilitate the examinations required by § 51A-6A-31; and

            (4)    Perform trust administration in South Dakota.

    Each public trust company chartered in South Dakota prior to July 1, 2012, shall meet the requirements of this section no later than July 1, 2015, unless the director grants an extension of up to twenty-four months upon a showing of good faith effort. A public trust company seeking an extension of time shall include in its application to the director the reasons for any delay and a detailed time line for expected compliance with this section.

    The commission may promulgate rules, pursuant to chapter 1-26, to establish additional guidelines regarding what constitutes trust administration in South Dakota for purposes of this section.

    Section 5. That chapter 51A-6A be amended by adding a NEW SECTION to read:

    For purposes of § 51A-6A-11.1, office space in South Dakota for each public trust company shall:

            (1)    Be in premises distinct and divided from the office space of any other entity;

            (2)    Have the name, charter, and certificate of authority of the trust company prominently displayed;

            (3)    Have access to premises in or adjacent to the office space sufficient to facilitate onsite examinations by the division;

            (4)    To the extent the trust company maintains hard copies of any documents required to be maintained pursuant to § 51A-6A-30, have a secure fireproof file cabinet that contains all such hard copies; and

            (5)    To the extent the trust company maintains any record electronically, have a secure computer terminal or other secure electronic device that provides access to such records, including account information, as necessary to facilitate an efficient and effective examination.

    For public trust companies chartered in South Dakota prior to July 1, 2016, the division shall determine full compliance with the provisions of this section at the first regular examination after June 30, 2018.

    Section 6. That chapter 51A-6A be amended by adding a NEW SECTION to read:

    Upon application by a trust company, the director may approve office space that does not meet the requirements of section 6 of this Act if the director determines the nature and degree of risks presented by the trust company are low based upon a review of the size, nature, and number of accounts administered by the trust company, the structure and business plan of the trust company approved by the division, and the number of employees or persons performing services for the trust company in South Dakota.

    If the size, risk profile, or rate of growth of a trust company changes, or if a trust company's office space is insufficient to facilitate onsite examinations by the division, the director may impose additional office space requirements.

    Section 7. That § 51A-6A-15 be amended to read:

    51A-6A-15. The governing board shall hold at least four regular meetings each year, at least one of which shall be held during each calendar quarter. Unless otherwise provided in the trust company's organizational documents, the governing board or an authorized committee may conduct, or permit any member to participate in, a regular or special meeting through the use of any means of communication by which all members participating may simultaneously hear each other during the meeting. A member participating in a meeting by this means is considered present in person at the meeting. The governing board or an auditor selected by them shall make a thorough examination of the books, records, funds, and securities held by the trust company at each of the quarterly meetings. The result of the examination shall be recorded in detail. If the governing board selects an auditor, the auditor's findings shall be reported directly to the governing board. In lieu of the required four quarterly examinations, the governing board may accept one annual audit by a certified public accountant or an independent auditor approved by the director.

    The provisions of this section do not alter, amend, or change the requirement of a public trust company to hold no less than two quarterly governing board meetings with a majority physically present in South Dakota each calendar year pursuant to § 51A-6A-11.1.

    Section 8. That § 51A-6A-58 be amended to read:

    51A-6A-58. After first applying for and obtaining the approval of the director, one or more trust service offices may be established and operated by a trust company incorporated under the laws of this state or by an out-of-state trust institution, if and to the extent that the state, territory, or district in which the out-of-state trust institution is chartered or licensed to engage in a trust company business grants authority for a trust company organized and doing business under the laws of this state to establish an office in that state, territory, or district. An application to establish and operate a trust service office or to relocate an existing trust service office shall be submitted and approved in the manner set forth in § 51A-6A-4.


    A trust company may establish a trust service office in another state, territory, or district and may conduct any activities at that office that are permissible for a trust company under the laws of that state, territory, or district subject to the laws of this state and subject to the rules, orders, or declaratory rules of the commission or the director.

    The provisions of this section do not apply to a private trust company unless the governing board decides to establish a trust service office in another state, territory, or district.

    Section 9. That § 55-1-12 be amended to read:

    55-1-12. The person whose confidence creates a trust is called the trustor; the person in whom the confidence is reposed is called the trustee; and the person for whose benefit the trust is created is called the beneficiary. As used in this title, except as specifically provided in chapters 55-13 and 55-13A, the term, beneficiary, means a person that has a present or future beneficial interest in a trust, vested or contingent. A person is not a beneficiary solely by reason of holding a power of appointment or by reason of the existence or exercise of a discretionary power described in § 55-1-36.1 with respect to the person. As used in this title, except as provided in § 55-1-26, the term, power of appointment, means a power, including a withdrawal power as defined in § 55-1-24.2, to direct the disposition of trust property, but does not include the authority of a trustee to make a distribution to a beneficiary. A power of appointment is held by the person to whom the power has been given and once granted to a person, is not capable of appropriation or of manual delivery. A power of appointment is a general power of appointment if it is exercisable in favor of the person holding the power, the person's estate, the person's creditors, or the creditors of the person's estate, whether or not the power is also exercisable in favor of others. A power of appointment is a nongeneral power of appointment if it is not a general power of appointment. As used in this section chapter, the term, person, has the meaning set forth in § 55-4-1.

    Section 10. That § 55-1-24 be amended to read:

    55-1-24. Terms used in §§ 55-1-24 to 55-1-45, inclusive, mean:

            (1)    "Beneficial interest," is limited to mean a distribution interest or a remainder interest. A beneficial interest specifically excludes a power of appointment or a power reserved by the settlor;

            (2)    "Distribution beneficiary," a beneficiary who is an eligible distributee or permissible distributee of trust income or principal;

            (3)    "Distribution interest," a distribution interest held by a distribution beneficiary. A distribution interest may be a current distribution interest or a future distribution interest. A distribution interest may be classified as a mandatory interest, a support interest, or a discretionary interest;

            (4)    "Power of appointment," an inter-vivos or testamentary power to direct the disposition of trust property, other than a distribution decision by a trustee to a beneficiary. Powers of appointment are held by a person to whom a power has been given, not the settlor as defined in § 55-1-12;

            (5)    "Reach," with respect to a distribution interest or power, to subject the distribution interest or power to a judgment, decree, garnishment, attachment, execution, levy, creditor's bill or other legal, equitable, or administrative process, relief, or control of any court, tribunal, agency, or other entity as provided by law;

            (6)    "Remainder interest," an interest where a trust beneficiary receives the property outright at some time during the future;

            (7)    "Reserved power," a power held by the settlor.

    Section 11. That § 55-1-24.2 be amended to read:

    55-1-24.2. A withdrawal power allows a beneficiary person a right to withdraw all or some part of the trust property, whether from income or principal. The holder of a power of withdrawal power is not deemed to be the settlor of the trust by failing to exercise a withdrawal power or letting a withdrawal power lapse.

    Section 12. That § 55-1-26 be amended to read:

    55-1-26. Regardless of whether or not a trust contains a spendthrift provision:

            (1)    No beneficial interest, power of appointment, or reserved power in a trust may be judicially foreclosed;

            (2)    No creditor may reach a power of appointment or a remainder interest at the trust level. The creditor shall wait until the funds are distributed before the creditor may reach the funds; and

            (3)    No power of appointment is a property or an interest in property.

    For purposes of this section, power of appointment is held by a person to whom a power has been given, not the settlor.

    Section 13. That § 55-1-36.1 be amended to read:

    55-1-36.1. Regardless of whether the transfer a disposition is a qualified transfer disposition pursuant to chapter 55-16, a settlor's creditors may not satisfy claims from either assets of the trust because of the existence of a discretionary power granted to the trustee by the terms of the trust instrument creating the trust, or any other provisions of law, to pay directly to the taxing authorities or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing the tax. No reimbursement may be made to the settlor or direct tax payment made to a taxing authority for the settlor's benefit for any tax or trust income or principal which is payable by the trustor under the law imposing the tax where a trustee is granted a discretionary power by the terms of the trust instrument, or any provision of law, to pay directly to any taxing authority, or to reimburse the person liable for, any tax imposed by a taxing authority on the person by reason of the person being treated as the owner of all or any portion of the trust property pursuant to §§ 671 to 678, inclusive, of the Internal Revenue Code of 1986, 26 U.S.C. §§ 671 to 678, inclusive, as of January 1, 2016, and the U.S. Treasury Regulations promulgated thereunder, as of January 1, 2016:

            (1)    A creditor of the person shall not satisfy a claim from the property of the trust solely because of the existence or exercise of the discretionary power; and

            (2)    The use of trust property to pay the tax shall not be deemed a distribution or transfer of trust property to the person for any purpose, and the amount paid from the trust to the taxing authority or to the person in reimbursement of the person's payment of the tax is not subject to the claims of a creditor of the person solely because of the existence or exercise of the discretionary power.

    Section 14. That chapter 55-1 be amended by adding a NEW SECTION to read:

    A trust is valid and enforceable even though it may not be funded at a given time, or from time to time, or does not initially have any res or corpus or otherwise contain any asset of any nature. A trust is valid and enforceable even though its res is neither ascertainable nor identifiable at the time of the trust's creation. No trustee, trust protector, or trust advisor has any duty prior to the time a trust

has a res, corpus, or any asset.

    Section 15. That § 55-1B-1 be amended to read:

    55-1B-1. Terms used in this chapter mean:

            (1)    "Instrument," any revocable or irrevocable trust document created inter vivos or testamentary or any custodial account agreement;

            (2)    "Trust protector," any person whose appointment as protector is provided for in the instrument. Such person may not be considered to be acting in a fiduciary capacity except to the extent the governing instrument provides otherwise. However, a protector shall be considered acting in a fiduciary capacity to the extent that the person exercises the authority of an investment trust advisor or a distribution trust advisor;

            (3)    "Trust advisor," either an investment trust advisor or a distribution trust advisor;

            (4)    "Fiduciary," a trustee or custodian under any instrument, an executor, administrator, or personal representative of a decedent's estate, or any other party, including a trust advisor, a trust protector, or a trust committee, who is acting in a fiduciary capacity for any person, trust, or estate;

            (5)    "Excluded fiduciary," any fiduciary excluded from exercising certain powers under the instrument which powers may be exercised by the grantor, custodial account owner, trust advisor, trust protector, trust committee, or other persons designated in the instrument;

            (6)    "Investment trust advisor," a fiduciary, given authority by the instrument to exercise all or any portions of the powers and discretions set forth in § 55-1B-10;

            (7)    "Distribution trust advisor," a fiduciary, given authority by the instrument to exercise all or any portions of the powers and discretions set forth in § 55-1B-11;

            (8)    "Custodial account," an account, established by a party with a bank as defined in 26 U.S.C. 408(n), as of January 1, 2006, or with another person approved by the Internal Revenue Service as satisfying the requirements to be a nonbank trustee or a nonbank passive trustee set forth in U.S. Treasury Regulations promulgated under 26 U.S.C. 408, that is governed by an instrument concerning the establishment or maintenance, or both, of an individual retirement account, qualified retirement plan, Archer medical savings account, health savings account, Coverdell education savings account, or any similar retirement or savings vehicle permitted under the Internal Revenue Code of 1986, as of January 1, 2006;

            (9)    "Custodial account owner," any party who establishes a custodial account; or has the power to designate the beneficiaries or appoint the custodian of the custodial account; or otherwise is the party who possesses the power to direct the investment, disposition, or retention of any assets in the custodial account or name an authorized designee to effect the same;

            (10)    "Family advisor," any person whose appointment is provided for in the governing instrument or by court order who is authorized to consult with or advise a fiduciary with regard to fiduciary or nonfiduciary matters and actions, and who may also be authorized by the governing instrument or court order to otherwise act in a nonfiduciary capacity.

    Section 16. That § 55-1B-2 be amended to read:

    55-1B-2. An excluded fiduciary is not liable, either individually or as a fiduciary, for any of the

following:

            (1)    Any loss that results from compliance with a direction of the trust advisor, custodial account owner, or authorized designee of a custodial account owner, including any loss from the trust advisor breaching fiduciary responsibilities or acting beyond the trust advisor's scope of authority;

            (2)    Any loss that results from a failure to take any action proposed by an excluded fiduciary that requires a prior authorization of the trust advisor if that excluded fiduciary timely sought but failed to obtain that authorization;

            (3)    Any loss that results from any action or inaction, except for gross negligence or willful misconduct, when an excluded fiduciary is required, pursuant to the trust agreement or any other reason, to assume the role of trust advisor, trust protector, investment trust advisor, or distribution trust advisor.

    Any excluded fiduciary is also relieved from any obligation to review or evaluate any direction from a distribution trust advisor or to perform investment or suitability reviews, inquiries, or investigations or to make recommendations or evaluations with respect to any investments to the extent the trust advisor, custodial account owner, or authorized designee of a custodial account owner had authority to direct the acquisition, disposition, or retention of any such investment. If the excluded fiduciary offers such communication to the trust advisor, trust protector, investment trust advisor, or distribution trust advisor or any investment person selected by the investment trust advisor, such action may not be deemed to constitute an undertaking by the excluded fiduciary to monitor or otherwise participate in actions within the scope of the advisor's authority or to constitute any duty to do so.

    Any excluded fiduciary is also relieved of any duty to communicate with or warn or apprise any beneficiary or third party concerning instances in which the excluded fiduciary would or might have exercised the excluded fiduciary's own discretion in a manner different from the manner directed by the trust advisor, trust protector, investment trust advisor, or distribution trust advisor.

    Absent contrary provisions in the governing instrument, the actions of the excluded fiduciary (such as any communications with the trust advisor and others and carrying out, recording, and reporting actions taken at the trust advisor's direction) pertaining to matters within the scope of authority of the trust advisor, trust protector, investment trust advisor, or distribution trust advisor shall be deemed to be administrative actions taken by the excluded fiduciary solely to allow the excluded fiduciary to perform those duties assigned to the excluded fiduciary under the governing instrument, and such administrative actions may not be deemed to constitute an undertaking by the excluded fiduciary to monitor, participate, or otherwise take any fiduciary responsibility for actions within the scope of authority of the trust advisor, trust protector, investment trust advisor, or distribution trust advisor.

    Nothing in subdivision (2) imposes an obligation or liability with respect to a custodian of a custodial account.

    In an action against an excluded fiduciary pursuant to the provisions of this section, the burden to prove the matter by clear and convincing evidence is on the person seeking to hold the excluded fiduciary liable.

    Section 17. That § 55-1B-6 be amended to read:

    55-1B-6. The powers and discretions of a trust protector are as provided in the governing instrument and may be exercised or not exercised, in the best interests of the trust, in the sole and absolute discretion of the trust protector and are binding on all other persons. The powers and discretion may include the following:



            (1)    Modify or amend the trust instrument to achieve favorable tax status or respond to changes in the Internal Revenue Code, state law, or the rulings and regulations thereunder;

            (2)    Increase or decrease the interests of any beneficiaries to the trust;

            (3)    Modify the terms of any power of appointment granted by the trust. However, a modification or amendment may not grant a beneficial interest to any individual or class of individuals not specifically provided for under the trust instrument;

            (4)    Remove and appoint a trustee, a fiduciary provided for in the governing trust instrument, trust advisor, investment committee member, or distribution committee member;

            (5)    Terminate the trust;

            (6)    Veto or direct trust distributions;

            (7)    Change situs or governing law of the trust, or both;

            (8)    Appoint a successor trust protector;

            (9)    Interpret terms of the trust instrument at the request of the trustee;

            (10)    Advise the trustee on matters concerning a beneficiary;

            (11)    Amend or modify the trust instrument to take advantage of laws governing restraints on alienation, distribution of trust property, or the administration of the trust; and

            (12)    Provide direction regarding notification of qualified beneficiaries pursuant to § 55-2-13;

            (13)    Add to the trust an individual beneficiary or beneficiaries from a class of individuals identified in the governing instrument;

            (14)    Add to the trust a charitable beneficiary or beneficiaries from a class of charities identified in the trust instrument; and

            (15)    Provide other powers and discretions in the governing instrument.

    The powers referenced in subdivisions (5), (6), and (11) may be granted notwithstanding the provisions of §§ 55-3-24 to 55-3-28, inclusive.

    Section 18. That chapter 55-1B be amended by adding a NEW SECTION to read:

    The powers and discretions of a family advisor are as provided in the governing instrument or by court order and may be exercised or not exercised, in the best interests of the trust, in the sole and absolute discretion of the family advisor. The powers and discretions may only include the following:

            (1)    Remove and appoint a trustee, a fiduciary provided for in the governing trust instrument, trust advisor, investment committee member, or distribution committee member;

            (2)    Appoint a successor trust protector or a successor family advisor;

            (3)    Advise the trustee on matters concerning any beneficiary; receive trust accountings, investment reports, and other information from the trustee or to which a beneficiary is entitled; attend meetings whether in person or by any other means with the trustee, investment trust advisors, distribution trust advisors, or other advisors whether in person

or by any means, electronic or otherwise; and to consult with a fiduciary regarding both fiduciary and nonfiduciary matters or actions, all without any power or discretion to take any action as a fiduciary; or

            (4)    Provide direction regarding notification of qualified beneficiaries pursuant to § 55-2-13.

    A family advisor is not required to exercise any powers or discretions under any circumstances. Every action or inaction by a family advisor is a nonfiduciary action or inaction and a family advisor is absolutely excluded from liability to any other person for an action or inaction as a family advisor. A court may review a family advisor's exercise of the powers described in subdivisions (1), (2), and (4) only if the family advisor acts dishonestly or with an improper motive but may not review a family advisor's failure to exercise any powers. A reasonableness standard may not be applied to any action or inaction of a family advisor. Other than for the two circumstances listed above, a court has no jurisdiction to review a family advisor's action or inaction.

    A family advisor is entitled to compensation as provided in the governing instrument. If the governing instrument does not provide for or establish compensation, a family advisor is entitled to reasonable compensation for the exercise of the powers and discretions granted to the family advisor pursuant to this chapter.

    Section 19. That § 55-3-3 be amended to read:

    55-3-3. When a trustee is appointed by a court or public officer as such, such a trustee, the court or officer is the trustor. A court may otherwise establish or create a trust and may act as the trustor of a trust.

    Section 20. That § 55-3-7 be amended to read:

    55-3-7. A trustee is a general agent for the trust and the trust property. His The trustee's authority is such as the authority that is conferred upon him the trustee by the declaration of trust and by this chapter and none other. His The trustee's acts, within the scope of his the trustee's authority, bind the trust and the trust property to the same extent as the acts of an agent bind his the agent's principal.

    Section 21. That § 55-3-23 be amended to read:

    55-3-23. In addition to the methods specified in §§ 55-3-24 to 55-3-27, inclusive, a trust terminates if:

            (1)    The term of the trust expires;

            (2)    The trust purpose if is fulfilled;

            (3)    The trust purpose becomes unlawful or impossible to fulfill; or

            (4)    The trust is revoked.

    Section 22. That § 55-3-28 be amended to read:

    55-3-28. On petition by a trustee or beneficiary, the court may reform the terms of the trust, based upon a showing by the preponderance of the evidence and without any preliminary showing of an ambiguity, to conform to the trustor's intention if the failure to conform was due to a mistake of fact or law and the trustor's intent can be established. The terms of the trust may be construed or modified, in a manner that does not violate the trustor's probable intention, to achieve the trustor's tax objectives.

    Section 23. That § 55-3-48 be amended to read:



    55-3-48. Except as otherwise expressly provided by the terms of a governing instrument specifically addressing the governing law for trust administration or by court order Unless the governing instrument or a court order expressly prohibits the change of the law of another jurisdiction to govern the administration of the trust, the laws of South Dakota shall govern the administration of a trust while the trust is administered in South Dakota.

    Section 24. That § 55-16-10 be amended to read:

    55-16-10. A cause of action or claim for relief with respect to a fraudulent transfer of a settlor's assets under § 55-16-9 is extinguished unless the action under § 55-16-9 is brought by a creditor of the settlor who meets one of the following requirements:

            (1)    Is a creditor of the settlor before the settlor's assets are transferred to the trust, and the action under § 55-16-9 is brought within the later of:

            (a)    Two years after the transfer is made; or

            (b)    Six months after the transfer is or reasonably could have been discovered by the creditor if the creditor:

            (i)    Can demonstrate that the creditor asserted a specific claim against the settlor before the transfer; or

            (ii)    Files another action, other than an action under § 55-16-9, against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in this sub-subsection is filed within two years after the transfer; or

            (2)    Becomes a creditor subsequent to the transfer into trust, and the action under § 55-16-9 is brought within two years after the transfer is made.;

            (3)    In any action described in § 55-16-9, the burden to prove the matter by clear and convincing evidence is upon the creditor;

            (4)    A person is deemed to have discovered a transfer at the time a public record of the transfer is made, including the conveyance of an interest in real property that is recorded in the appropriate public filing office where the property is located, the filing of a financing statement pursuant to chapter 57A-9, or the filing of a bill of sale or other transfer instrument regarding personal property; or

            (5)    The filing of a bill of sale or other transfer instrument which conveys personal property to a trust which is governed by this chapter shall be filed in the applicable public filing office determined as follows:

            (a)    If the transferor is a natural person and is a resident of this state, the personal property transfer instrument shall be recorded in the county in this state where the transferor maintains the transferor's principal residence; and

            (b)    In all other cases, the personal property transfer instrument shall be recorded in the county in this state where the trustee of the trust maintains a principal residence or principal place of business.

    Section 25. That § 55-16-11 be amended to read:

    55-16-11. A qualified disposition that is made by means of a disposition by a transferor who is a trustee is deemed to have been made as of the time, whether before, on, or after July 1, 2005, the

property that is the subject of the qualified disposition was originally transferred to the transferor, or any predecessor trustee, making the qualified disposition in a form that meets the requirements of subdivisions 55-16-2(2) and (3). Further, the provisions of this section apply to determine the date the transfer is deemed to have been made, notwithstanding that the original transfer was to a trust originally within or outside of the jurisdiction of South Dakota.

    If property transferred to a spendthrift trust is conveyed to the settlor or to a beneficiary for the purpose of obtaining a loan secured by a mortgage or deed of trust on the property and then reconveyed to the trust within one hundred eighty days of recording the mortgage or deed of trust, for purposes of subdivision 55-16-10(1), the transfer is disregarded and the reconveyance relates back to the date the property was originally transferred to the trust. The mortgage or deed of trust on the property is enforceable against the trust.

    Section 26. That § 55-16-13 be amended to read:

    55-16-13. Notwithstanding any other provision of law, no action of any kind, including an action to enforce a judgment entered by a court or other body having adjudicative authority, may be brought at law or in equity against the trustee, or advisor described in § 55-16-4, of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition, if, as of the date such action is brought, an action by a creditor with respect to such qualified disposition would be barred under §§ 55-16-9 to 55-16-12, inclusive. A court of this state has exclusive jurisdiction over an action brought under a claim for relief that is based on a transfer of property to a trust that is the subject of this section. A court of this state may award attorneys' fees and costs to the prevailing party in such an action. In any action described in this section, the burden to prove the matter by clear and convincing evidence is upon the creditor.

    Section 27. That § 21-22-2 be amended to read:

    21-22-2. This chapter applies to all trusts if any part of the trust estate has its situs within this state or if the trustee or a beneficiary resides in this state, except as otherwise specifically provided by statute or rule of court, the intent being to exclude therefrom such trusts as a statutory assignment for the benefit of creditors, probate administrations, conservatorships, and all other trusts as to which specific provision is made for court supervision. The provisions of §§ 55-3-24 to 55-3-44 55-3-48, inclusive, are applicable to actions or proceedings relating to trusts supervised or administered under this chapter.

    Section 28. That § 21-22-28 be amended to read:

    21-22-28. The privacy of those who have established a court trust or other trust shall be protected in any court proceeding concerning the trust if the acting fiduciary, the trustor (if living), or any beneficiary so petition the court. Upon the filing of such a any petition, the instrument on which the trust is based, inventory, statement filed by any fiduciary, annual verified report of a fiduciary, final report of a fiduciary, and all petitions relevant to trust administration and all court orders thereon shall be sealed upon filing and may not be made a part of the public record of the proceeding, but are available to the court, to the trustor, to any fiduciary, to any beneficiary, to their attorneys, and to such other interested persons as the court may order upon a showing of the need.

    Section 29. That the code be amended by adding a NEW SECTION to read:

    An arrangement is a South Dakota special spousal trust if one or both spouses in a marriage transfer property to a trust, the trust expressly declares that some or all the property transferred is South Dakota special spousal property as provided in this section to section 42, inclusive, of this Act, and at least one trustee is a qualified person. A South Dakota special spousal trust is enforceable without consideration. Both spouses or either spouse may be a trustee. The trust must be signed by both spouses. The trust may be revocable or irrevocable.

    For purposes of this section, a qualified person is any person who meets the requirements of §§ 55-3-41 and 55-3-39, but without regard to whether that person is the transferor.

    Section 30. That the code be amended by adding a NEW SECTION to read:

    A South Dakota special spousal trust shall contain the following language in capital letters at the beginning of the trust:

THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING YOUR RIGHTS WITH RESPECT TO CREDITORS AND OTHER THIRD PARTIES, AND YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE, AT THE TIME OF A DIVORCE, AND AT THE DEATH OF YOU OR YOUR SPOUSE. ACCORDINGLY, THIS TRUST AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS TRUST AGREEMENT, YOU SHOULD SEEK INDEPENDENT LEGAL ADVICE.

    Section 31. That the code be amended by adding a NEW SECTION to read:

    Spouses may classify all or any of their property as special spousal property by transferring property to a South Dakota special spousal trust established pursuant to sections 29 to 42, inclusive, of this Act, and by expressly declaring in the trust that the property is community property.

    Section 32. That the code be amended by adding a NEW SECTION to read:

    A South Dakota special spousal trust may not be amended or revoked unless the trust agreement provides for amendment or revocation, or unless the trust agreement is amended or revoked by a later South Dakota special spousal trust. To amend or revoke the trust, the later South Dakota special spousal trust is not required to declare any property held by the trustee as special spousal property. The amended trust or the revocation is enforceable without consideration. However, notwithstanding the other provisions of sections 29 to 42, inclusive, of this Act, unless the South Dakota special spousal trust expressly provides otherwise, at any time after the death of the first spouse the surviving spouse may amend the South Dakota special spousal trust with regard to the surviving spouse's property to be disposed of at the surviving spouse's death. For purposes of this section, the term, surviving spouse's property, means the property that consists of the surviving spouse's property that is not South Dakota special spousal property and the surviving spouse's share of the special spousal property determined as of the date of the first spouse's death.

    Section 33. That the code be amended by adding a NEW SECTION to read:

    For purposes of the application of § 1014(b)(6) of the Internal Revenue Code of 1986, 26 U.S.C. § 1014(b)(6), as of January 1, 2016, a South Dakota special spousal trust is considered a trust established under the community property laws of South Dakota. For purposes of sections 29 to 42, inclusive, of this Act, the term, special spousal property, means community property for those purposes. Community property as classified by a jurisdiction other than South Dakota transferred to a South Dakota special spousal trust retains its character as community property while in the trust. If the trust is revoked and property is transferred on revocation of the trust, the community property as classified by a jurisdiction other than South Dakota retains its character as community property to the extent otherwise provided by South Dakota law.

    Section 34. That the code be amended by adding a NEW SECTION to read:

    A transfer to a South Dakota special spousal trust may also be a qualified disposition in trust if the transfer complies with the provisions of chapter 55-16.

    Section 35. That the code be amended by adding a NEW SECTION to read:


    In addition to other transfers of property to a South Dakota special spousal trust, property is considered transferred to a South Dakota special spousal trust if the property is subject to a nonprobate transfer on death under an insurance policy, contract of employment, bond, mortgage, promissory note, certificated or uncertificated security, account agreement, custodial agreement, deposit agreement, compensation plan, pension plan, individual retirement plan, employee benefit plan, trust, conveyance, deed of gift, marital property agreement, or other written instrument of a similar nature and the South Dakota special spousal trust is designated as a beneficiary to receive the property under the transfer. The property is considered the surviving spouse's property that is not South Dakota special spousal property.

    Section 36. That the code be amended by adding a NEW SECTION to read:

    The trustee of a South Dakota special spousal trust shall maintain records that identify which property held by the trust is South Dakota special spousal property and which property held by the trust is not South Dakota special spousal property.

    Section 37. That the code be amended by adding a NEW SECTION to read:

    Except as provided in sections 38 and 39 of this Act, in a South Dakota special spousal trust, spouses may agree on:

            (1)    The rights and obligations in the property transferred to the trust, notwithstanding when and where the property is acquired or located;

            (2)    The management and control of the property transferred to the trust;

            (3)    The disposition of the property transferred to the trust on dissolution, death, or the occurrence or nonoccurrence of another event;

            (4)    The choice of law governing the interpretation of the trust; and

            (5)    Any other matter that affects the property transferred to the trust and does not violate public policy or a statute imposing a criminal penalty.

    Section 38. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding anything contained in section 37 of this Act to the contrary, a South Dakota special spousal trust may not adversely affect the right of a child to support.

    Section 39. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding anything contained in section 37 of this Act to the contrary:

            (1)    A provision of a revocable South Dakota special spousal property trust does not adversely affect the interest of a creditor unless the creditor has actual knowledge of the trust when the obligation to the creditor is incurred. The interest of a creditor in an irrevocable South Dakota special spousal property trust may be subject to the rights and liabilities of a creditor with respect to transfers under chapter 55-16 as provided in section 34 of this Act;

            (2)    A spouse shall act in good faith with respect to the other spouse in matters involving South Dakota special spousal property. The obligation under and effect of this section may not be varied by a South Dakota special spousal property trust.


    Section 40. That the code be amended by adding a NEW SECTION to read:

    Notwithstanding anything contained in section 37 of this Act to the contrary:

            (1)    Notice of the existence of a South Dakota special spousal property trust, a marriage, or the termination of a marriage does not affect the status of a purchaser as a bona fide purchaser;

            (2)    Special spousal property purchased by a bona fide purchaser from a spouse having the right to manage and control the property is acquired free of any claim of the other spouse. The effect of this subsection may not be varied by a South Dakota special spousal property trust.

    Section 41. That the code be amended by adding a NEW SECTION to read:

    For purposes of section 40 of this Act, the term, bona fide purchaser, means a purchaser of property for value who has not knowingly been a party to fraud or illegality affecting the interest of the spouses or other parties to the transaction, does not have notice of an adverse claim by a spouse, and has acted in the transaction in good faith.

    For purposes of this section, the term, purchaser, means a person who acquires property by sale, lease, discount, negotiation, mortgage, pledge, or lien, or otherwise deals with property in a voluntary transaction other than making a gift.

    A purchaser gives value for property if the property is acquired:

            (1)    In return for a binding commitment to extend credit;

            (2)    As security for or in total or partial satisfaction of a preexisting claim;

            (3)    By accepting delivery under a preexisting contract for purchase; or

            (4)    In return for other consideration sufficient to support a contract.

    Section 42. That the code be amended by adding a NEW SECTION to read:

    A South Dakota special spousal trust executed during marriage is not enforceable if the spouse against whom enforcement is sought proves that:

            (1)    The trust was unconscionable when made;

            (2)    The spouse against whom enforcement is sought did not execute the South Dakota special spousal trust agreement voluntarily; or

            (3)    Before execution of the South Dakota special spousal trust agreement, the spouse against whom enforcement is sought:

            (a)    Was not given a fair and reasonable disclosure of the property and financial obligations of the other spouse;

            (b)    Did not voluntarily sign a written waiver expressly waiving right to disclosure of the property and financial obligations of the other spouse beyond the disclosure provided; and

            (c)    Did not have notice of the property or financial obligations of the other spouse.

    Whether a South Dakota special spousal trust is unconscionable is determined by a court as a matter of law.

     Signed February 18, 2016
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End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\231.wpd

INSURANCE

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\232.wpd
CHAPTER 232

(HB 1040)

Risk retention group oversight implemented.


        ENTITLED, An Act to revise and implement certain provisions regarding the regulation of risk retention groups.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 58-6A be amended by adding a NEW SECTION to read:

    Any retention group licensed before July 1, 2016, shall be in compliance with sections 2 to 15, inclusive, of this Act, by July 1, 2017. Any risk retention group licensed after June 30, 2016, shall be in compliance with sections 2 to 15, inclusive, of this Act, at licensure.

    Section 2. That § 58-6A-1 be amended to read:

    58-6A-1. Terms used in this chapter mean:

            (1)    "Board of directors" or "board," the governing body of the risk retention group as elected by the shareholders or members to establish policy, elect or appoint officers and committees, and make other governing decisions;

            (2)    "Completed operations liability," any liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by:

            (a)    Any person who performs that work installation, maintenance, or repair of any product; or

            (b)    Any person who hires an independent contractor to perform that work installation, maintenance, or repair of any product; but includes liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability;

            (2)(3)    "Director," the insurance director of South Dakota or the commissioner, director, or superintendent of insurance in any other state;

            (4)    "Director of the risk retention group," an individual designated in the articles of the risk retention group, or designated, elected, or appointed by any other manner, name, or title to act as a director;

            (3)(5)    "Domicile," for purposes of determining the state in which a purchasing group is domiciled:

            (a)    For a corporation, the state in which the purchasing group is incorporated; and

            (b)    For an unincorporated entity, the state of its principal place of business;

            (4)(6)    "Hazardous financial condition," based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, which is unlikely to be able:

            (a)    To meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

            (b)    To pay other obligations in the normal course of business;

            (5)(7)    "Insurance," primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this state;

            (6)(8)    "Liability," legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses because of injuries to other persons injury to a person, damage to their the person's property, or other damage or loss to such any other persons person resulting from or arising out of any business, whether profit or nonprofit, trade, product, services, including professional services, premises or operations. It does not include personal risk liability and an employer's liability with respect to its employees other than legal liability under the Federal Employers' Liability Act (45 U.S.C. 51 et seq.);

            (7)(9)    "Personal risk liability," liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, family or household responsibilities or activities, rather than from responsibilities or activities referred to in subdivision (6) of this section (8);

            (8)(10)    "Plan of operation or a feasibility study," an analysis which presents the expected activities and results of a risk retention group including, at a minimum:

            (a)    The For each state in which the risk retention group intends to operate, the coverages, deductibles, coverage limits, rates and rating classification systems for each line of insurance the group intends to offer;

            (b)    Historical and expected loss experience of the proposed members and national experience of similar exposures to the extent that this experience is reasonably available;

            (c)    Pro forma financial statements and projections;

            (d)    Appropriate opinions by a qualified, independent casualty actuary, including a determination of minimum premium or participation levels required to commence operations and to prevent a hazardous financial condition;

            (e)    Identification of management, underwriting procedures, managerial oversight methods, investment policies, and reinsurance agreements; and

            (f)    Information sufficient to verify that the risk retention group's members are engaged in businesses or activities similar or related with respect to the liability to which the members are exposed by virtue of any related, similar, or common business, trade,

product, services, premises, or operations;

            (g)    Identification of each state in which the risk retention group has obtained, or sought to obtain, a charter and license, and a description of its status in each state; and

            (h)    Such other Other matters as may be prescribed by the director, supervisor, or commissioner of the state in which the risk retention group is chartered for liability insurance companies authorized by the insurance laws of the that state in which the risk retention group is chartered;

            (9)(11)    "Product liability," liability for damages because of any personal injury, death, emotional harm, consequential economic damage, or property damage, including damages resulting from the loss of use of property, arising out of the manufacture, design, importation, distribution, packaging, labeling, lease, or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of such a person when the incident giving rise to the claim occurred;

            (10)(12)    "Purchasing group," any group which:

            (a)    Has as one of its purposes the purchase of liability insurance on a group basis;

            (b)    Purchases such insurance only for its group members and only to cover their similar or related liability exposure, as described in subsection (c) herein;

            (c)    Is composed of members whose businesses or activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and

            (d)    Is domiciled in any state;

            (11)(13)    "Risk retention group," any corporation or other limited liability association formed under the laws of any state, Bermuda, or the Cayman Islands:

            (a)    Whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its the group members;

            (b)    Which is organized for the primary purpose of conducting the activity described under subsection (a);

            (c)    Which is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance director of at least one state that it satisfied the capitalization requirements of such state, except that any such group shall be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability;

            (d)    Which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person;

            (e)    Which has as its members only persons who have an ownership interest in the group and which has as its owners only persons who are members who are provided insurance by the risk retention group; or has as its sole member and sole

owner an organization which is owned by persons who are provided insurance by the risk retention group;

            (f)    Whose members are engaged in businesses or activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;

            (g)    Whose activities do not include the provision of insurance other than liability insurance for assuming and spreading all or any portion of the liability of its group members; and reinsurance with respect to the liability of any other risk retention group or any members of such other group which is engaged in businesses or activities so that such group or member meets the requirement described in subsection (f) from membership in the risk retention group which provides such reinsurance; and

            (h)    The name of which includes the term ", risk retention group";

            (14)    "Service provider," any auditor, accountant, actuary, investment advisor, lawyer, managing general underwriter, or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting and settling a claim, or the preparation of a financial statement. The term, lawyer, in this definition does not include defense counsel retained by the risk retention group to defend claims, unless the amount of fees paid to the lawyer is material as referenced in section 4 of this Act;

            (12)(15)    "State," any state of the United States or the District of Columbia.

    Section 3. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The board of directors of the risk retention group shall have a majority of independent directors. If the risk retention group is a reciprocal, then the attorney-in-fact shall adhere to the same standards regarding independence of operation and governance as imposed on the risk retention group's board of directors or subscriber's advisory committee under these standards. In addition, to the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.

    No director of the risk retention group qualifies as independent unless the board of directors affirmatively determines that the director of the risk retention group has no material relationship as described in section 4 of this Act with the risk retention group. Each risk retention group shall disclose these determinations to the group's domestic regulator, at least annually. For the purposes of this section, any person that is a direct or indirect owner of or subscriber in the risk retention group or is an officer, director of the risk retention group, or employee of such an owner and insured, unless some other position of the officer, director of the risk retention group, or an employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act in effect as of January 1, 2016, is considered to be independent.

    Section 4. That chapter 58-6A be amended by adding a NEW SECTION to read:

    A material relationship includes:

            (1)    The receipt in any one twelve-month period of compensation or payment of any other item of value greater than or equal to five percent of the risk retention group's gross written premium for the twelve-month period or two percent of the risk retention group's surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period by a person with the risk retention group or:

            (a)    The person's immediate family member;

            (b)    A business with which the person is affiliated from the risk retention group; or

            (c)    A consultant or service provider to the risk retention group.

                A person with the risk retention group or an immediate family member of the person is not independent until one year after the person's compensation from the risk retention group falls below the threshold;

            (2)    A relationship with an auditor where a director of the risk retention group or an immediate family member of a director of the risk retention group who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group is not independent until one year after the end of the affiliation, employment, or auditing relationship; and

            (3)    A relationship with a related entity where a director of the risk retention group or an immediate family member of a director of the risk retention group who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors is not independent until one year after the end of the service or the employment relationship.

    Section 5. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The term of any material service provider contract with the risk retention group may not exceed five years. Any material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors. The risk retention group's board of directors shall have right to terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. The service provider contract is deemed material if the amount to be paid for the contract is greater than or equal to five percent of the risk retention group's annual gross written premium or two percent of its surplus, whichever is greater.

    Section 6. That chapter 58-6A be amended by adding a NEW SECTION to read:

    No service provider contract meeting the criteria of material relationship contained in section 4 of this Act may be entered into unless the risk retention group has notified the director in writing of the risk retention group's intention to enter into the contract at least thirty days before entering into the transaction and the director has not disapproved the contract within that period.

    Section 7. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The risk retention group's board of directors shall adopt a written policy in the plan of operation as approved by the board that requires the board to:

            (1)    Assure that all owners and insureds of the risk retention group receive evidence of ownership interest;

            (2)    Develop a set of governance standards applicable to the risk retention group;

            (3)    Oversee the evaluation of the risk retention group's management including the performance of the managing general underwriter or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting or settling a claim, or the preparation of a financial statement;

            (4)    Review and approve the amount to be paid for each material service provider; and

            (5)    Review and approve, at least annually:

            (a)    The risk retention group's goals and objectives relevant to the compensation of officers and service providers;

            (b)    The officers' and service providers' performance in light of those goals and objectives; and

            (c)    The continued engagement of the officers and material service providers.

    Section 8. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The risk retention group shall have an audit committee composed of at least three independent board members as defined in sections 3 and 4 of this Act. A nonindependent board member may participate in the activities of the audit committee, if invited by the committee, but cannot be a member of the audit committee.

    Section 9. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The audit committee of the risk retention group shall have a written charter that defines the committee's purpose, which, at a minimum, shall:

            (1)    Assist board oversight of the integrity of financial statements, the compliance with legal and regulatory requirements, and the qualifications, independence, and performance of the independent auditor and actuary;

            (2)    Discuss the annual audited financial statements and quarterly financial statements with management;

            (3)    Discuss the annual audited financial statements with the group's independent auditor and, if advisable, discuss the group's quarterly financial statements with the group's independent auditor;

            (4)    Discuss policies with respect to risk assessment and risk management;

            (5)    Meet separately and periodically, either directly or through a designated representative of the committee, with management and the independent auditor;

            (6)    Review with the independent auditor any audit problems or difficulties and management's response;

            (7)    Set clear hiring policies of the risk retention group as to the hiring of employees or former employees of the independent auditor;

            (8)    Require the external auditor to rotate the lead or coordinating audit partner having primary responsibility for the risk retention group's audit as well as the audit partner responsible for reviewing that audit so that neither individual performs audit services for more than five consecutive fiscal years; and

            (9)    Report regularly to the board of directors.

    Section 10. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The domestic regulator may waive the requirement to establish an audit committee composed of independent board members if the risk retention group is able to demonstrate to the domestic regulator that it is impracticable to do so and the risk retention group's board of directors itself is otherwise able to accomplish the purposes of an audit committee, as described in section 9 of this Act.

    Section 11. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The board of directors shall adopt and disclose governance standards and make the information available electronically through the risk retention group's website or by other means. The risk retention group shall provide the governance standards to members or insureds on request. The adopted governance standards shall include the following:

            (1)    Concerning the directors of the risk retention group:

            (a)    A process by which the directors are elected by the owners or insureds;

            (b)    Qualification standards;

            (c)    Responsibilities;

            (d)    Access to management and, as necessary and appropriate, independent advisors;

            (e)    Compensation; and

            (f)    Orientation and continuing education;

            (2)    The policies and procedures that are followed for management succession; and

            (3)    The policies and procedures that are followed for annual performance evaluation of the board.

    Section 12. That chapter 58-6A be amended by adding a NEW SECTION to read:

    The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. Each director, officer, and employee shall promptly disclose to the board of directors any waivers of the code. The code of business conduct and ethics shall include the following topics:

            (1)    Conflicts of interest;

            (2)    Matters covered under the corporate opportunities doctrine under the state of domicile;

            (3)    Confidentiality;

            (4)    Fair dealing;

            (5)    Protection and proper use of risk retention group assets;

            (6)    Compliance with all applicable laws, rules, and regulations; and

            (7)    Requiring the reporting of any illegal or unethical behavior which affects the operation of the risk retention group.

    Section 13. That chapter 58-6A be amended by adding a NEW SECTION to read:

    If the manager, president, or chief executive officer of the risk retention group becomes aware of any material noncompliance with any standards described in sections 3 to 13, inclusive, of this Act, the manager, president, or officer shall promptly notify the domestic regulator in writing.

    Section 14. That § 58-6A-2 be amended to read:


    58-6A-2. Any risk retention group seeking to be chartered in this state shall be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided elsewhere in this chapter, shall comply with all of the laws, rules, regulations, and requirements applicable to such insurers chartered and licensed in this state. Before it may offer insurance in any state, each risk retention group shall also submit for approval to the director of insurance of this state a plan of operation or a feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance. Immediately upon receipt of an application for charter, this state If any subsequent material change is made to the plan of operation or feasibility study, the risk retention group shall submit an appropriate revision to the director within ten days of any change. No group may offer any additional lines of liability insurance in this state or any other state until a revision of the plan or study is approved by the director.

    When filing an application for charter, the risk retention group shall provide to the director a summary of information concerning the filing to the National Association of Insurance Commissioners, including the name of the risk retention group, the identity of the initial members of the group, the identity of those individuals persons who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the group intends to operate. Upon receipt, the director shall forward the information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition, and is not sufficient, to satisfy the requirements of this chapter.

    Section 15. That § 58-6A-3 be amended to read:

    58-6A-3. Before offering insurance in this state, a risk retention group not chartered in this state shall submit to the director:

            (1)    A statement identifying the states in which the risk retention group is chartered and licensed as a liability insurance company, date of chartering, its principal place of business, and such other information, including information on its membership, as the director of this state may require to verify that the risk retention group is qualified under this chapter;

            (2)    A copy of its the group's plan of operations or a feasibility study and revisions of such the plan or study submitted to its state of domicile. However, the provision relating to the submission of a plan of operation or a feasibility study does not apply with respect to any line or classification of liability insurance which was defined in the Product Liability Risk Retention Act of 1981, before October 27, 1986, and was offered before such date by any risk retention group which had been chartered and operating for not less than three years before such date; and

            (3)    A statement of registration which designates the director as its the group's agent for the purpose of receiving service of legal documents or process; and

            (4)    A copy of any material revision to the group's plan of operation or feasibility study within thirty days of the date of the approval of the revision by the director of the group's chartering state, or if no such approval is required, within thirty days of filing.

    Section 16. That § 58-44-1 be amended to read:

    58-44-1. Terms used in this chapter mean:

            (1)    "Accredited state," any state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established by the National Association of Insurance Commissioners (NAIC);

            (2)    "Control" or "controlled," as defined in chapter 58-5A;

            (3)    "Controlled insurer," any licensed insurer which is controlled, directly or indirectly, by a broker;

            (4)    "Controlling broker," any person who, directly or indirectly, controls an insurer and for any compensation, commission, or other thing of value, acts or aids in any manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured other than the controlling broker;

            (5)    "Licensed insurer" or "insurer," any person duly licensed to transact a property and casualty insurance business in this state. The following are not licensed insurers for the purposes of this chapter:

            (a)    All risk retention groups as defined in the Superfund Amendments Reauthorization Act of 1986, P.L. No. 99-499, 100 Stat. 1613 (1986) and the Risk Retention Act, 15 U.S.C. Section 3901 et seq. (1982 & Supp. 1986) and chapter 58-6A; and

            (b)    All The term does not include any residual market pools and pool or any joint underwriting authorities or associations authority or association.

     Signed February 12, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\233.wpd
CHAPTER 233

(SB 38)

Bail bondsperson, requirements changed.


        ENTITLED, An Act to revise certain provisions concerning bail bondspersons.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 58-22 be amended by adding a NEW SECTION to read:

    No bail bondsperson may post a corporate surety bond under the bondsperson's own license for the licensee's release from incarceration.

    Section 2. That chapter 58-22 be amended by adding a NEW SECTION to read:

    The director retains the authority to enforce the provisions of and impose any penalty or remedy authorized by this chapter and title 58 against any person who is under investigation for or charged with any violation of this chapter or title 58 even if the person's license has been surrendered or has lapsed by operation of law.

    Section 3. That chapter 58-22 be amended by adding a NEW SECTION to read:

    A person licensed under this chapter shall report any felony criminal prosecution of the person taken in any jurisdiction to the director within thirty days of the initial pretrial hearing date. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.

    For purposes of this section, initial pretrial hearing means either a defendant's arraignment or the

first time that a defendant who is accused of a crime, or the defendant's attorney, appears before a court in a criminal action in any jurisdiction, whichever occurs first.

    Section 4. That § 58-22-14 be amended to read:

    58-22-14. The applicant for any license under this chapter shall apply in writing, on forms prepared and supplied by the director, and the director may propound any reasonable interrogatories to an applicant for a license under this chapter or on any renewal thereof, relating to the applicant's qualifications, residence, prospective place of business, and any other matters which, in the opinion of the director, are deemed necessary or expedient in order to protect the public and ascertain the qualifications of the applicant. The director may also conduct any reasonable inquiry or investigation the director sees fit, relative to the determination of the applicant's fitness to be licensed or to continue to be licensed including a criminal background check, and the applicant is responsible for any costs associated with a criminal background check as charged by the appropriate agency conducting and furnishing the background check. The applicant shall provide any necessary authorization requested by the director to facilitate an inquiry or investigation.

    As part of any application to obtain licensure as a bail bondsperson or runner under this chapter, each applicant shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. Upon application, the director shall submit completed fingerprint cards to the Division of Criminal Investigation for purposes of conducting both the state and federal criminal background investigation. Upon completion of the criminal background investigation the Division of Criminal Investigation shall forward to the director all information obtained as a result of the criminal background investigation. The applicant is responsible for any costs associated with background investigations as charged by the appropriate agency conducting and furnishing any background investigations. Failure to submit or cooperate with any criminal background investigation is grounds for denial of an application for licensure under this chapter.

    Section 5. That § 58-22-16 be amended to read:

    58-22-16. The applicant shall be required to appear in person and take a written examination prepared by the director, testing his the applicant's ability and qualifications to be a bail bondsman bondsperson or runner.

    Each applicant shall become eligible for examination during the first six months after the date the application is received by the director, if the director is satisfied as to the applicant's fitness to take the examination. Examinations Each examination shall be held at such times and places a time and place as designated by the director.

     Signed March 3, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\234.wpd
CHAPTER 234

(SB 39)

Captive insurance companies, certain fees revised.


        ENTITLED, An Act to revise certain provisions concerning fees for sponsored captive insurance companies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 58-46-6 be amended to read:



    58-46-6. Each captive insurance company shall pay to the director a nonrefundable fee of two thousand dollars for examining, investigating, and processing its application for certificate of authority. Two or more captive insurance companies under common ownership or control shall pay this fee for each application submitted to the director for a certificate of authority. A sponsored captive insurance company shall pay an additional one thousand dollars for every additional each protected cell application. However, no additional fee is required for the first protected cell application submitted by a sponsored captive insurance company. The director may retain legal, financial, and examination services from outside the department. The reasonable cost of the services may be charged against the applicant with notice to the applicant. The provisions of chapter 58-3 apply to examinations, investigations, and processing conducted under the authority of this chapter.

     Signed March 7, 2016
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UNEMPLOYMENT COMPENSATION

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\235.wpd
CHAPTER 235

(SB 43)

Unemployment insurance,
failure to pay contributions penalty increased.


        ENTITLED, An Act to increase the unemployment insurance penalty for failure to pay contributions or make reports.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 61-5-58 be amended to read:

    61-5-58. A penalty of five twenty-five dollars per month, or fractional part of a month shall be due and payable upon imposition of the penalty by the department, for failure to pay contributions, or for failure to submit required reports on or before the due date for such the contributions or reports as fixed by the department. However, no penalty for any one delinquent contribution or report may exceed the sum of thirty one hundred fifty dollars. Any penalty collected pursuant to this section shall be paid into the employment security contingency fund.

     Signed March 15, 2016
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WORKERS' COMPENSATION

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\236.wpd
CHAPTER 236

(HB 1084)

Concurrent employment may be used
to calculate earnings in workers' compensation cases.


        ENTITLED, An Act to define when concurrent employment may be used to calculate earnings in workers' compensation cases.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The Legislature finds that the aggregation of wages from concurrent employment was not within the Legislature's intent when it enacted the definition of earnings in subdivision 62-1-1(6). Therefore, the holding in Wheeler v. Cinna Bakers LLC, 2015, 864 N.W. 2d 17, 2015, regarding the aggregation of wages is abrogated.

    Section 2. That chapter 62-1 be amended by adding a NEW SECTION to read:

    For a workers' compensation claim arising before May 6, 2015, an employee's earnings up to the claimed date of injury are calculated exclusively on the wages earned at the place of employment where the injury occurred.

    Section 3. That chapter 62-1 be amended by adding a NEW SECTION to read:

    For a workers' compensation claim arising after May 5, 2015, if an employee was working for more than one employer, the employee's earnings used to calculate the employee's average weekly wage in §§ 62-4-24, 62-4-25, or 62-4-26 shall include the amount of compensation for the number of hours commonly regarded as a day's work for each employer in which the person was concurrently employed at the time of the person's injury; however, an employee's earnings from concurrent employment are aggregated only if the injury occurred when the employee was actively working in the concurrent employment and when the injury prevents the employee from performing the employee's duties at the employee's other concurrent employment.

    Section 4. That subdivision (6) of § 62-1-1 be amended to read:

            (6)    "Earnings," the amount of compensation for the number of hours commonly regarded as a day's work for the employment in which the employee was engaged working at the time of his the employee's injury. It includes payment for all hours worked, including overtime hours at straight-time pay, and does not include any sum which the employer has been accustomed to pay the employee to cover any special expense entailed by him the employee by the nature of his the employment; wherever allowances of any character made to an employee in lieu of wages are specified as a part of the wage contract, they the allowances shall be deemed a part of his the employee's earnings;

    Section 5. That chapter 62-6 be amended by adding a NEW SECTION to read:

    An employer which complies with this title shall produce, if demanded by any employer or insurer against whom an injured employee has made a workers' compensation claim, the work-related records referring to its employee available for the fifty-two weeks preceding the employee's claimed dates of injury, such as:

            (1)    The weeks in which the employee performed services;

            (2)    The earnings the employee received for the services, as defined in subdivision 62-1-1(6);

            (3)    Interruptions in employment if the employee was rehired or seasonally employed;

            (4)    Changes in the employee's grade of employment;

            (5)    The employee's job description; and

            (6)    Federal or state tax deductions.

    The employer receiving this demand shall produce the employee's work-related records in ten business days, and may charge a fee for the production of the records. The fee for the production of the employee's work-related records may not exceed fifteen dollars.

    An employee waives any right to privacy to these work-related records when the employee makes a claim for workers' compensation benefits and the employee consents to the release of these work-related records to the employer or insurer against which the employee is making a claim for workers' compensation benefits.

    Section 6. That chapter 62-2 be amended by adding a NEW SECTION to read:

    The Workers' Compensation Advisory Council shall include in its annual report data about the average amount of disability or fatality benefits paid for a claim over the most recent calendar years, the ratio of disability and fatality benefits to overall benefits paid, and any changes in premium base rates directly attributable to including concurrent earnings in benefits. It shall report to the 2019 Legislature the impact of this Act.

    Section 7. That § 58-20-3.1 be amended to read:

    58-20-3.1. Premiums for workers' compensation insurance may not be based on wages paid to employees while they are on vacation, holidays, or sick leave or on wages received from employment not performed for the insured employer.

     Signed February 18, 2016
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SUPREME COURT RULES AND ORDERS

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\237.wpd
CHAPTER 237

SCR 15-15

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE AMENDMENT
OF SDCL 15-6-4(e) RULE 15-15
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on April 22, 2015, at Pierre, South Dakota, relating to the amendment of SDCL 15-6-4(e), and the Court having considered the proposed amendment thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that SDCL 15-6-4(e) be and it is hereby amended to read in its entirety as follows:

    15-6-4(e).  Service by leaving copy with resident of defendant's dwelling.Service in the following manner shall also constitute personal service. If the defendant cannot be found conveniently, service may be made by leaving a copy at his the defendant's dwelling house in the presence of a member of his family with someone over the age of fourteen years or if the defendant resides in the family of another, with a member of such age of the family with which he who resides there.

    IT IS FURTHER ORDERED that this rule shall become effective January 1, 2016.

    DATED at Pierre, South Dakota, this 15th day of July, 2015.

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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\238.wpd
CHAPTER 238

SCR 15-16

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE ADOPTION
OF A NEW RULE RELATING TO
EXPEDITED CIVIL ACTIONS RULE 15-16
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on April 22, 2015, at Pierre, South Dakota, relating to the adoption of a new rule relating to expedited civil actions, and the Court having considered the proposed rule thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that the adoption of a new rule relating to expedited civil actions be and it is hereby adopted to read in its entirety as follows:

Expedited Civil Actions.
SOUTH DAKOTA RULES OF CIVIL PROCEDURE IN CIRCUIT COURTS

    15-6-72. Expedited civil actions--General provisions.(1) Eligible actions. This article IX governs "expedited civil actions" in which the sole relief sought is a money judgment and in which all claims (other than compulsory counterclaims) for all damages by or against any one party total $75,000 or less, including damages of any kind, penalties, and attorneys' fees, but excluding prejudgment interest accrued prior to entry of judgment, post-judgment interest, and costs.

    (2) Excluded actions. This article IX does not apply to small claims or domestic relations cases.

    (3) Electing expedited procedures. An eligible plaintiff may elect to proceed by filing an expedited civil action and by certifying that the sole relief sought is a money judgment and that all claims (other than compulsory counterclaims) for all damages by or against any one party total $75,000 or less, including damages of any kind, penalties, and attorneys' fees, but excluding prejudgment interest accrued prior to entry of judgment, post-judgment interest, and costs. The certification must be on a form approved by the Supreme Court and signed by all plaintiffs and their attorneys if represented. (See Form 27). The certification is not admissible to prove a plaintiff's damages in the expedited civil action or in any other proceeding.

    (4) South Dakota Rules of Civil Procedure otherwise apply. Except as otherwise specifically provided by this rule, the South Dakota Rules of Civil Procedure are applicable to expedited civil actions.

    (5) Limitation on damages. Except as provided in subdivision (6), a party proceeding under this article IX may not recover a judgment in excess of $75,000, nor may a judgment be entered against a party in excess of $75,000, excluding prejudgment interest that accrues prior to entry of judgment, post-judgment interest, and costs. The jury, if any, must not be informed of the $75,000 limitation. If the jury returns a verdict for damages in excess of $75,000 for or against a party, the court may not enter judgment on that verdict in excess of $75,000, exclusive of prejudgment interest that

accrues prior to entry of judgment, post-judgment interest, and costs.

    (6) Stipulated expedited civil action. In a civil action not eligible under subdivision (1) and not excluded by subdivision (2), the parties may request to proceed as an expedited civil action upon the parties' filing of a Joint Motion to Proceed as an Expedited Civil Action. (See Form 28). If the court grants the parties' motion, and unless the parties have otherwise agreed, the parties will not be bound by the $75,000 limitation on judgments in subdivision (5). The parties may enter into additional stipulations regarding damages and attorneys' fees. Unless otherwise ordered, the joint motion and any stipulations must not be disclosed to the jury.

    (7) Termination of expedited civil action. Upon timely application of any party, the court may terminate application of this rule and enter such orders as are appropriate under the circumstances if:

            (A)    The moving party makes a specific showing of substantially changed circumstances or other good cause sufficient to render the application of this rule unfair; or

            (B)    A party has in good faith filed a compulsory counterclaim that seeks relief other than that allowed under subdivision (1).

    (8) Permissive counterclaims. Permissive counterclaims are subject to the $75,000 limitation on damages under subdivision (5), unless the court severs the permissive counterclaim.

    (9) Side. As used throughout this article IX, the term "side" refers to all the litigants with generally common interests in the litigation.

    15-6-73. Discovery in expedited civil actions.(1) Discovery period. Except upon agreement of the parties or leave of court granted upon a showing of good cause, all discovery must be completed no later than 60 days before trial.

    (2) Limited and simplified discovery procedures. Except upon agreement of the parties or leave of court granted upon a showing of good cause, discovery in expedited civil actions is subject to the following additional limitations:

            (A)    Interrogatories to parties. Each side may serve no more than 10 interrogatories, including all discrete subparts, on any other side under § 15-6-33.

            (B)    Production of documents. Each side may serve no more than 10 requests for production, including all discrete subparts, on any other side under § 15-6-34.

            (C)    Requests for admission. Each side may serve no more than 10 requests for admission, including all discrete subparts, on any other side under § 15-6-36. This limit does not apply to requests for admission of the genuineness of documents that the party intends to offer into evidence at trial.

            (D)    Depositions upon oral examination.

            (i)    Parties. One deposition of each party may be taken. With regard to corporations, partnerships, voluntary associations, or any other groups or entities named as a party, one representative deponent may be deposed.

            (ii)    Other deponents. Each side may take the deposition of up to two nonparties.

    (3) Number of expert witnesses. Each side is entitled to one retained expert, except upon agreement of the parties or leave of court granted upon a showing of good cause.

    (4) Motion for leave of court. A motion for leave of court to modify the limitations provided in this section must be in writing and must set forth the proposed additional discovery and the reasons establishing good cause for its use.

    15-6-74. Motions.(1) Motions to dismiss. Any party may file any motion permitted by § 15-6-12(b). Unless the court orders a stay, the filing of a motion to dismiss will not eliminate or postpone otherwise applicable pleading or disclosure requirements.

    (2) Motions for summary judgment.

            (A)    Any party may file any motion permitted by § 15-6-56.

            (B)    Limited number. Each party may file no more than one motion for summary judgment under § 15-6-56. The motion may include more than one ground.

            (C)    Deadline. Motions for summary judgment under § 15-6-56 must be filed no later than 90 days before trial.

    15-6-75. Procedure for expedited trials.(1) Demand for jury trial. Any party who desires a jury trial of any issue triable of right by a jury must file and serve upon the other parties a demand for jury trial pursuant to § 15-6-38(b). Otherwise, expedited civil actions will be tried to the court.

    (2) Trial setting. The court shall set the expedited civil action for trial on a date certain, which will be a firm date except that the court may later reschedule the trial at the convenience of the parties. Unless the court otherwise orders for good cause shown, expedited civil actions must be tried within one year of filing.

    (3) Pretrial submissions.

            (A)    The trial court shall provide for the timing and extent of such submissions by appropriate pre-trial order, at the court's discretion.

            (B)    In addition to the pretrial submissions required by the trial court, the parties must file one jointly proposed set of jury instructions and verdict forms. If a jury instruction or verdict form is controverted, each side must include its specific objections, supporting authority, and, if desired, a proposed alternative instruction or verdict form for the court's approval, denial, or modification. Both stipulated and alternative proposed jury instructions and verdict forms must be set forth in one document that is filed electronically in word processing format with the court.

    (4) Expedited civil jury trial. Unless otherwise ordered, the jury in an expedited civil jury trial will consist of twelve persons selected from a panel of eighteen prospective jurors. Each side must strike three prospective jurors. The parties may stipulate to a jury of fewer than twelve upon such conditions as agreed to by the parties and the trial court.

    (5) Expedited nonjury trial. The court trying an expedited civil action without a jury may, in its discretion, dispense with findings of fact and conclusions of law and instead render judgment on a general verdict, special verdicts, or answers to interrogatories that are accompanied by relevant legal instructions that would be used if the action were being tried to a jury. When the court follows this procedure, parties must make their record with respect to objections to or requests for instructions, special verdicts, and answers to interrogatories as in a jury trial. Post-trial motions will be permitted as in a jury trial except that the court may, in lieu of ordering a new trial, enter new verdicts or answers to interrogatories on the existing trial record.

    (6) Time limit for trial. Expedited civil actions should ordinarily be submitted to the jury within two business days from the commencement of trial. Unless the court allows additional time for good

cause shown, each side is allowed no more than six hours to complete jury selection, opening statements, presentation of evidence, examination and cross-examination of witnesses, and closing arguments. Time spent on objections, bench conferences, and challenges for cause to a juror is not included in the time limit.

    (7) Evidence.

            (A)    Stipulations. Parties should stipulate to factual and evidentiary matters to the greatest extent possible.

            (B)    Documentary evidence admissible without custodian certification or testimony. The court may overrule objections based on authenticity and hearsay to the admission of a document, notwithstanding the absence of testimony or certification from a custodian or other qualified witness, if:

            (i)    The party offering the document gives notice to all other parties of the party's intention to offer the document into evidence at least 90 days in advance of trial. The notice must be given to all parties together with a copy of any document intended to be offered.

            (ii)    The document on its face appears to be what the proponent claims it is.

            (iii)    The document on its face appears not to be hearsay or appears to fall within a hearsay exception set forth in South Dakota Rule of Evidence subdivision 19-19-803 (3), (4), (6), (7), (8), (9), (10), (11), (12), (13), or (18).

            (iv)    The objecting party has not raised a substantial question as to the authenticity or trustworthiness of the document.

            (v)    Nothing in subdivision (7) (B) affects the operation of other South Dakota Rules of Evidence such as §§ 19-19-402 to 19-19-404, inclusive.

            (vi)    Nothing in this section authorizes admission of a document that contains hearsay within hearsay, unless the court determines from the face of the document that each part of the combined statements conforms with an exception to the hearsay rule set forth above.

            (vii)    Any authenticity or hearsay objections to a document as to which notice has been provided under subdivision (7) (B) (i) must be made within 30 days after receipt of the notice.

            (C)    Health care provider statement in lieu of testimony. A statement of a health care provider in lieu of testimony shall be permitted in an expedited civil action and shall be governed by the requirements of § 19-19-803.2.

    15-6-76. Settlement conference--Alternative dispute resolution.Unless the parties have agreed to engage in alternative dispute resolution or are required to do so by contract or statute, the court may not, by order or local rule, require the parties to engage in a settlement conference or any other form of alternative dispute resolution.

    15-6-76.1. Claim preclusion--Issue preclusion.Judgments or orders in an expedited civil action may not be relied upon to establish claim preclusion or issue preclusion unless the party seeking to rely on a judgment or order for preclusive effect was either a party or in privity with a party in the expedited civil action.



Form 27. Expedited civil action certification

STATE OF SOUTH DAKOTA ) IN CIRCUIT COURT
: SS
COUNTY OF __________ ) ________________ JUDICIAL CIRCUIT
        
__________, Civ. __________
        
Plaintiff,
v. EXPEDITED CIVIL ACTION CERTIFICATION
            
__________,
        
    Defendant.        
            

Plaintiff, ________________________________________, together with Plaintiff's attorney,
Name of Plaintiff
________________________________________, elect to bring this lawsuit as an Expedited
Name of attorney

Civil Action under article IX of the Rules of Civil Procedure.

    Plaintiff certifies that the sole relief sought is a money judgment and that all claims (other than compulsory counterclaims) for all damages by or against any one party total $75, 000 or less, including damages of any kind, penalties, and attorneys' fees, but excluding prejudgment interest accrued prior to entry of judgment, post judgment interest, and costs.

    Plaintiff certifies the following:

    1. I am a plaintiff in this action.

    2. If I am represented by an attorney, I have conferred with my attorney about using the Expedited Civil Action procedures available to parties in the State of South Dakota.

    3. I understand that by electing to proceed under Expedited Civil Action procedures, the total amount of my recovery will not exceed $75, 000, excluding prejudgment interest accrued prior to entry of judgment, post judgment interest, and court costs. Additionally, no single defendant can be liable for more than $75,000 to all plaintiffs combined, excluding prejudgment interest accrued prior to entry of judgment, post judgment interest, and court costs.

    4. I understand that if a jury were to award more than $75, 000 as damages to me, or if a jury were to award more than $75, 000 in total against a single defendant, the trial judge would reduce the amount of the judgment to $75, 000, plus any applicable interest and court costs to which I may be entitled.

    With this knowledge, I agree to proceed under the Expedited Civil Action procedures.

    Dated this __________ day of __________, 20 __________.

__________
Plaintiff
Oath and Signatures
I, ______________________________, certify under penalty of perjury and pursuant to the
Print Plaintiff's Name


laws of the State of South Dakota that the preceding is true and correct.
______________ ______, 20__________,
Month Day Year

_____________________________ ___________________________________
Handwritten signature of Plaintiff Full name of Plaintiff; first, middle, last

____________________________________
Plaintiff's attorney's name, if applicable

_____________________________________
Signature of attorney, if applicable

_____________________________________
Law firm, if applicable

________________________________________________
Mailing address of attorney (or Plaintiff if unrepresented)

_________________________________________________
Telephone number of attorney (or Plaintiff if unrepresented)

_____________________________________________
Email address of attorney (or Plaintiff if unrepresented)

_____________________________________________
Additional email address, if available



Form 28. Joint motion to proceed as expedited civil action

STATE OF SOUTH DAKOTA ) IN CIRCUIT COURT
: SS
COUNTY OF __________ ) ________________ JUDICIAL CIRCUIT
        
__________, Civ. __________
        
Plaintiff,
v. JOINT MOTION TO PROCEED AS EXPEDITED CIVIL ACTION
            
__________,
        
    Defendant.        
            

     1. Pursuant to Supreme Court Rule 15-16 (article IX of the Rules of Civil Procedure), the parties hereby move upon stipulation that this action proceed as an Expedited Civil Action.
     2. All parties agree to this motion.
     3. If the court grants this joint motion, the parties acknowledge and agree that this case will be subject to the Expedited Civil Action rule, except for the limitations on damages as provided in 6-72(6).
     Status of Trial Scheduling Order and Discovery Plan: Check one
    * The parties have already filed a Trial Scheduling and Discovery Plan. This case has a current trial date of __________. The parties wish to retain that trial date.
    * The parties will be filing a Trial Scheduling and Discovery Plan in an Expedited Civil Action case.
    I certify that all parties and attorneys to this action have agreed to this Joint Motion and have been served with a copy.
__________ __________, 20 __________,
Month Day Year

_________________________________________
Party's or attorney's signature

_________________________________________
Plaintiff's attorney's name, if applicable

_________________________________________
Signature of attorney, if applicable

_________________________________________
Law firm, if applicable

__________________________________________
Mailing address of attorney (or Plaintiff if unrepresented)

____________________________________________
Telephone number of attorney (or Plaintiff if unrepresented)
    
____________________________________________
Email address of attorney (or Plaintiff if unrepresented)


_____________________________________________
Additional email address, if available

    IT IS FURTHER ORDERED that this rule shall become effective January 1, 2016.

    DATED at Pierre, South Dakota, this 15th day of July, 2015.

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\238.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\239.wpd
CHAPTER 239

SCR 15-17

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE AMENDMENTS
TO SDCL TITLE 19 - EVIDENCE
CHAPTER 19-19 SOUTH DAKOTA RULES
OF EVIDENCE TO INCLUDE:
ARTICLE I. GENERAL PROVISIONS
ARTICLE II. JUDICIAL NOTICE
ARTICLE IV. RELEVANCE AND ITS LIMITS
ARTICLE VI. WITNESSES
ARTICLE VII. OPINIONS AND EXPERT
TESTIMONY
ARTICLE VIII. HEARSAY
ARTICLE IX. AUTHENTICATION AND
IDENTIFICATION
ARTICLE X. CONTENTS OF WRITINGS,
RECORDINGS, AND PHOTOGRAPHS RULES 15-17 through 15-72
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    Hearings were held on January 13, 2015, and September 1, 2015, at Pierre, South Dakota, relating to the amendments of SDCL Title 19 - Evidence, and the Court having considered the proposed amendments and repeals thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that certain rules in SDCL Title 19 - Evidence be and they are hereby amended to read in their entirety as follows:

CHAPTER 19-19
SOUTH DAKOTA RULES OF EVIDENCE

ARTICLE I. GENERAL PROVISIONS


    Rule 15-17. SDCL 19-19-101. Scope--definitions. (a) Scope. This chapter governs proceedings in the courts of this state to the extent and with the exceptions stated in § 19-19-1101.

    (b) Definitions. In these rules:

            (1)    "Civil case" means a civil action or proceeding;
            (2)    "Criminal case" includes a criminal proceeding;
            (3)    "Public office" includes a public agency;
            (4)    "Record" includes a memorandum, report, or data compilation;
            (5)    A "rule prescribed by the Supreme Court" means a rule adopted by the Supreme Court under statutory authority; and
            (6)    A reference to any kind of written material or any other medium includes electronically stored information.

    Rule 15-18. SDCL 19-19-102. Purpose. This chapter should be construed so as to administer every proceeding fairly, eliminate unjustifiable expense and delay, and promote the development of evidence law, to the end of ascertaining the truth and securing a just determination.

    Rule 15-19. SDCL 19-9-103. Rulings on evidence. (a) Preserving a claim of error. A party may claim error in a ruling to admit or exclude evidence only if the error affects a substantial right of the party and:

            (1)    If the ruling admits evidence, a party, on the record:
        (A)    Timely objects or moves to strike; and
        (B)    States the specific ground, unless it was apparent from the context; or
            (2)    If the ruling excludes evidence, a party informs the court of its substance by an offer of proof, unless the substance was apparent from the context.

    (b) Not needing to renew an objection or offer of proof. Once the court rules definitively on the record---either before or at trial---a party need not renew an objection or offer of proof to preserve a claim of error for appeal.

    (c) Court's statement about the ruling; directing an offer of proof. The court may make any statement about the character or form of the evidence, the objection made, and the ruling. The court may direct that an offer of proof be made in question and answer form.

    (d) Preventing the jury from hearing inadmissible evidence. To the extent practicable, the court must conduct a jury trial so that inadmissible evidence is not suggested to the jury by any means.

    (e) Taking notice of plain error. A court may take notice of a plain error affecting a substantial right, even if the claim of error was not properly preserved.

    Rule 15-20. SDCL 19-19-104. Preliminary questions. (a) In general. The court must decide any preliminary question about whether a witness is qualified, a privilege exists, or evidence is admissible. In so deciding, the court is not bound by evidence rules, except those on privilege.

    (b) Relevance that depends on a fact. When the relevance of evidence depends on whether a fact exists, proof must be introduced sufficient to support a finding that the fact does exist. The court may admit the proposed evidence on the condition that the proof be introduced later.

    (c) Conducting a hearing so that the jury cannot hear it. The court must conduct any hearing on a preliminary question so that the jury cannot hear it if:

    (1)    The hearing involves the admissibility of a confession;
    (2)    A defendant in a criminal case is a witness and so requests; or
    (3)    Justice so requires.

    (d) Cross-examining a defendant in a criminal case. By testifying on a preliminary question, a defendant in a criminal case does not become subject to cross-examination on other issues in the

case.

    (e) Evidence relevant to weight and credibility. This section does not limit a party's right to introduce before the jury evidence that is relevant to the weight or credibility of other evidence.

    Rule 15-21. SDCL 19-19-105. Limiting evidence that is not admissible against other parties or for other purposes. If the court admits evidence that is admissible against a party or for a purpose - but not against another party or for another purpose - the court, on timely request, must restrict the evidence to its proper scope and instruct the jury accordingly.

    Rule 15-22. SDCL 19-19-106. Remainder of or related writings or recorded statements. If a party introduces all or part of a writing or recorded statement, an adverse party may require the introduction, at that time, of any other part - or any other writing or recorded statement - that in fairness ought to be considered at the same time.

ARTICLE II. JUDICIAL NOTICE

    Rule 15-23. SDCL 19-19-201. Judicial notice of adjudicative facts. (a) Scope. This section governs judicial notice of an adjudicative fact only, not a legislative fact.

    (b) Kinds of facts that may be judicially noticed. The court may judicially notice a fact that is not subject to reasonable dispute because it:

    (1)    Is generally known within the trial court's territorial jurisdiction; or
    (2)    Can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.

    (c) Taking notice. The court:

    (1)    May take judicial notice on its own; or
    (2)    Must take judicial notice if a party requests it and the court is supplied with the necessary information.

    (d) Timing. The court may take judicial notice at any stage of the proceeding.

    (e) Opportunity to be heard. On timely request, a party is entitled to be heard on the propriety of taking judicial notice and the nature of the fact to be noticed. If the court takes judicial notice before notifying a party, the party, on request, is still entitled to be heard.

    (f) Instructing the jury. In a civil case, the court must instruct the jury to accept the noticed fact as conclusive. In a criminal case, the court must instruct the jury that it may or may not accept the noticed fact as conclusive.

ARTICLE IV. RELEVANCE AND ITS LIMITS

    Rule 15-24. SDCL 19-19-401. Test for relevant evidence. Evidence is relevant if:

    (a)    It has any tendency to make a fact more or less probable than it would be without the evidence; and
    (b)    The fact is of consequence in determining the action.

    Rule 15-25. SDCL 19-19-403. Excluding relevant evidence for prejudice, confusion, waste of time, or other reasons. The court may exclude relevant evidence if its probative value is substantially outweighed by a danger of one or more of the following: unfair prejudice, confusing the issues, misleading the jury, undue delay, wasting time, or needlessly presenting cumulative evidence.


    Rule 15-26. SDCL 19-19-404 Character evidence--crimes or other acts. (a) Character evidence.

    (1)    Prohibited uses. Evidence of a person's character or character trait is not admissible to prove that on a particular occasion the person acted in accordance with the character or trait.
    (2)    Exceptions for a defendant or victim in a criminal case. The following exceptions apply in a criminal case:
        (A)    A defendant may offer evidence of the defendant's pertinent trait, and if the evidence is admitted, the prosecutor may offer evidence to rebut it;
        (B)    Subject to the limitations in § 19-19-412, a defendant may offer evidence of an alleged victim's pertinent trait, and if the evidence is admitted, the prosecutor may:
            (i)    Offer evidence to rebut it; and
            (ii)    Offer evidence of the defendant's same trait; and
        (C)    In a homicide case, the prosecutor may offer evidence of the alleged victim's trait of peacefulness to rebut evidence that the victim was the first aggressor.
    (3)    Exceptions for a witness. Evidence of a witness's character may be admitted under §§ 19-19-607 to 19-19-609, inclusive.

    (b) Crimes, wrongs, or other acts.

    (1)    Prohibited uses. Evidence of a crime, wrong, or other act is not admissible to prove a person's character in order to show that on a particular occasion the person acted in accordance with the character.
    (2)    Permitted uses; notice in a criminal case. This evidence may be admissible for another purpose, such as proving motive, opportunity, intent, preparation, plan, knowledge, identity, absence of mistake, or lack of accident. On request by a defendant in a criminal case, the prosecutor must:
        (A)    Provide reasonable notice of the general nature of any such evidence that the prosecutor intends to offer at trial; and
        (B)    Do so before trial-or during trial if the court, for good cause, excuses lack of pretrial notice.

    Rule 15-27. SDCL 19-19-405. Methods of proving character. (a) By reputation or opinion. When evidence of a person's character or character trait is admissible, it may be proved by testimony about the person's reputation or by testimony in the form of an opinion. On cross-examination of the character witness, the court may allow an inquiry into relevant specific instances of the person's conduct.

    (b) By specific instances of conduct. When a person's character or character trait is an essential element of a charge, claim, or defense, the character or trait may also be proved by relevant specific instances of the person's conduct.

    Rule 15-28. SDCL 19-19-406. Habit--routine practice. Evidence of a person's habit or an organization's routine practice may be admitted to prove that on a particular occasion the person or organization acted in accordance with the habit or routine practice. The court may admit this evidence regardless of whether it is corroborated or whether there was an eyewitness.

    Rule 15-29. SDCL 19-19-407. Subsequent remedial measures. When measures are taken that would have made an earlier injury or harm less likely to occur, evidence of the subsequent measures is not admissible to prove:

    (1)    Negligence;
    (2)    Culpable conduct;
    (3)    A defect in a product or its design; or
    (4)    A need for a warning or instruction.


But the court may admit this evidence for another purpose, such as impeachment or - if disputed - proving ownership, control, or the feasibility of precautionary measures.

    Rule 15-30. SDCL 19-19-408. Compromise offers and negotiations. (a) Prohibited uses. Evidence of the following is not admissible - on behalf of any party - either to prove or disprove the validity or amount of a disputed claim or to impeach by a prior inconsistent statement or a contradiction:

    (1)    Furnishing, promising, or offering - or accepting, promising to accept, or offering to accept - a valuable consideration in compromising or attempting to compromise the claim; and
    (2)    Conduct or a statement made during compromise negotiations about the claim - except when offered in a criminal case and when the negotiations related to a claim by a public office in the exercise of its regulatory, investigative, or enforcement authority.

    (b) Exceptions. The court may admit this evidence for another purpose, such as proving a witness's bias or prejudice, negating a contention of undue delay, or proving an effort to obstruct a criminal investigation or prosecution.

    Rule 15-31. SDCL 19-19-409. Offers to pay medical and similar expenses. Evidence of furnishing, promising to pay, or offering to pay medical, hospital, or similar expenses resulting from an injury is not admissible to prove liability for the injury.

    Rule 15-32. SDCL 19-19-410. Pleas, plea discussions, and related statements. (a) Prohibited uses. In a civil or criminal case, evidence of the following is not admissible against the defendant who made the plea or participated in the plea discussions:

    (1)    A guilty plea that was later withdrawn;
    (2)    A nolo contendere plea;
    (3)    A statement made during a proceeding on either of those pleas under §§ 23A-7-2 to 23A-7-15, inclusive; or
    (4)    A statement made during plea discussions with an attorney for the prosecuting authority if the discussions did not result in a guilty plea or they resulted in a later-withdrawn guilty plea.

    (b) Exceptions. The court may admit a statement described in this section in a criminal proceeding for perjury or false statement, if the defendant made the statement under oath, on the record, and with counsel present.

    Rule 15-33. SDCL 19-19-411. Liability insurance. Evidence that a person was or was not insured against liability is not admissible to prove whether the person acted negligently or otherwise wrongfully. But the court may admit this evidence for another purpose, such as proving a witness' bias or prejudice or proving agency, ownership, or control.

     Rule 15-34. SDCL 19-19-412. Sex-offense cases--victim's sexual behavior or predisposition. (a) Prohibited uses. The following evidence is not admissible in a civil or criminal proceeding involving alleged sexual misconduct:

    (1)    Evidence offered to prove that a victim engaged in other sexual behavior; or
    (2)    Evidence offered to prove a victim's sexual predisposition.

    (b) Exceptions.

    (1)    Criminal cases. The court may admit the following evidence in a criminal case:
        (A)    Evidence of specific instances of a victim's sexual behavior, if offered to prove that someone other than the defendant was the source of semen, injury, or other

physical evidence;
        (B)    Evidence of specific instances of a victim's sexual behavior with respect to the person accused of the sexual misconduct, if offered by the defendant to prove consent or if offered by the prosecutor; and
        (C)    Evidence whose exclusion would violate the defendant's constitutional rights.

    (2)    Civil cases. In a civil case, the court may admit evidence offered to prove a victim's sexual behavior or sexual predisposition if its probative value substantially outweighs the danger of harm to any victim and of unfair prejudice to any party. The court may admit evidence of a victim's reputation only if the victim has placed it in controversy.

    (c) Procedure to determine admissibility.

    (1)    Motion. If a party intends to offer evidence under this section, the party must:
        (A)    File a motion that specifically describes the evidence and states the purpose for which it is to be offered;
        (B)    Do so at least fourteen days before trial unless the court, for good cause, sets a different time;
        (C)    Serve the motion on all parties; and
        (D)    Notify the victim or, when appropriate, the victim's guardian or representative.

    (2)    Hearing. Before admitting evidence under this rule, the court must conduct an in camera hearing and give the victim and parties a right to attend and be heard. Unless the court orders otherwise, the motion, related materials, and the record of the hearing must be and remain sealed.

    (d) Definition of "victim." In this section, "victim" includes an alleged victim.

ARTICLE VI. WITNESSES

    Rule 15-35. SDCL 19-19-601. Competency to testify in general. Every person is competent to be a witness unless otherwise provided in this chapter.

    Rule 15-36. SDCL 19-19-602. Need for personal knowledge--exception for expert opinion. A witness may testify to a matter only if evidence is introduced sufficient to support a finding that the witness has personal knowledge of the matter. Evidence to prove personal knowledge may consist of the witness's own testimony. This rule does not apply to a witness's expert testimony under § 19-19-703.

    Rule 15-37. SDCL 19-19-603. Oath or affirmation to testify truthfully. Before testifying, a witness must give an oath or affirmation to testify truthfully. It must be in a form designed to impress that duty on the witness's conscience.

    Rule 15-38. SDCL 19-19-605. Judge's competency as a witness. The presiding judge may not testify as a witness at the trial. A party need not object to preserve the issue.

    Rule 15-39. SDCL 19-19-606. Juror's competency as a witness. (a) At the trial. A juror may not testify as a witness before the other jurors at the trial. If a juror is called to testify, the court must give a party an opportunity to object outside the jury's presence.

    (b) During an inquiry into the validity of a verdict or indictment.

    (1)    Prohibited testimony or other evidence. During an inquiry into the validity of a verdict or indictment, a juror may not testify about any statement made or incident that occurred during the jury's deliberations; the effect of anything on that juror's or another juror's vote; or any juror's mental processes concerning the verdict or indictment. The court may not

receive a juror's affidavit or evidence of a juror's statement on these matters.

    (2)    Exceptions. A juror may testify about whether:
        (A)    Extraneous prejudicial information was improperly brought to the jury's attention;
        (B)    An outside influence was improperly brought to bear on any juror; or
        (C)    A mistake was made in entering the verdict on the verdict form.

    Rule 15-40. SDCL 19-19-607. Who may impeach a witness. Any party, including the party that called the witness, may attack the witness's credibility.

    Rule 15-41. SDCL 19-19-608. A witness's character for truthfulness or untruthfulness. (a) Reputation or opinion evidence. A witness's credibility may be attacked or supported by testimony about the witness's reputation for having a character for truthfulness or untruthfulness, or by testimony in the form of an opinion about that character. But evidence of truthful character is admissible only after the witness's character for truthfulness has been attacked.

    (b) Specific instances of conduct. Except for a criminal conviction under § 19-19-609, extrinsic evidence is not admissible to prove specific instances of a witness's conduct in order to attack or support the witness's character for truthfulness. But the court may, on cross-examination, allow them to be inquired into if they are probative of the character for truthfulness or untruthfulness of:

    (1)    The witness; or
    (2)    Another witness whose character the witness being cross-examined has testified about.

    (c) Privilege against self-incrimination not waived by testimony on credibility. By testifying on another matter, a witness does not waive any privilege against self-incrimination for testimony that relates only to the witness's character for truthfulness.

    Rule 15-42. SDCL 19-19-609. Impeachment by evidence of a criminal conviction. (a) In general. The following rules apply to attacking a witness's character for truthfulness by evidence of a criminal conviction:

    (1)    For a crime that, in the convicting jurisdiction, was punishable by death or by imprisonment for more than one year, the evidence:
        (A)    Must be admitted, subject to § 19-19-403, in a civil case or in a criminal case in which the witness is not a defendant; and
        (B)    Must be admitted in a criminal case in which the witness is a defendant, if the probative value of the evidence outweighs its prejudicial effect to that defendant; and
    (2)    For any crime regardless of the punishment, the evidence must be admitted if the court can readily determine that establishing the elements of the crime required proving - or the witness's admitting - a dishonest act or false statement.

    (b) Limit on using the evidence after ten years. This subdivision (b) applies if more than ten years have passed since the witness's conviction or release from confinement for it, whichever is later. Evidence of the conviction is admissible only if:

    (1)    Its probative value, supported by specific facts and circumstances, substantially outweighs its prejudicial effect; and
    (2)    The proponent gives an adverse party reasonable written notice of the intent to use it so that the party has a fair opportunity to contest its use.

    (c) Effect of a pardon, annulment, or certificate of rehabilitation. Evidence of a conviction is not admissible under subdivisions (a) or (b) if:

    (1)    The conviction has been the subject of a pardon, annulment, certificate of rehabilitation,

or other equivalent procedure based on a finding that the person has been rehabilitated, and the person has not been convicted of a later crime punishable by death or by imprisonment for more than one year; or
    (2)    The conviction has been the subject of a pardon, annulment, or other equivalent procedure based on a finding of innocence.

    (d) Juvenile adjudications. Evidence of a juvenile adjudication is admissible under subdivision (a) only if:

    (1)    It is offered in a criminal case;
    (2)    The adjudication was of a witness other than the defendant;
    (3)    An adult's conviction for that offense would be admissible to attack the adult's credibility; and
    (4)    Admitting the evidence is necessary to fairly determine guilt or innocence.

    (e) Pendency of an appeal. A conviction that satisfies this rule is admissible even if an appeal is pending. Evidence of the pendency is also admissible.

    Rule 15-43. SDCL 19-19-610. Religious beliefs or opinions. Evidence of a witness's religious beliefs or opinions is not admissible to attack or support the witness's credibility.

    Rule 15-44. SDCL 19-19-611. Mode and order of examining witnesses and presenting evidence. (a) Control by the court; purposes. The court should exercise reasonable control over the mode and order of examining witnesses and presenting evidence so as to:

    (1)    Make those procedures effective for determining the truth;
    (2)    Avoid wasting time; and
    (3)    Protect witnesses from harassment or undue embarrassment.

    (b) Scope of cross-examination. Cross-examination should not go beyond the subject matter of the direct examination and matters affecting the witness's credibility. The court may allow inquiry into additional matters as if on direct examination.

    (c) Leading questions. Leading questions should not be used on direct examination except as necessary to develop the witness's testimony. Ordinarily, the court should allow leading questions:

    (1)    On cross-examination; and
    (2)    When a party calls a hostile witness, an adverse party, or a witness identified with an adverse party.

    Rule 15-45. SDCL 19-19-612. Writing used to refresh a witness's memory. (a) Scope. This section gives an adverse party certain options when a witness uses a writing to refresh memory:

    (1)    While testifying; or
    (2)    Before testifying, if the court decides that justice requires the party to have those options.

    (b) Adverse party's options; deleting unrelated matter. An adverse party entitled to have the writing produced at the hearing under subdivision (a) is entitled to inspect it, to cross-examine the witness about it, and to introduce in evidence any portion that relates to the witness's testimony. If the producing party claims that the writing includes unrelated matter, the court must examine the writing in camera, delete any unrelated portion, and order that the rest be delivered to the adverse party. Any portion deleted over objection must be preserved for the record.

    (c) Failure to produce or deliver the writing. If a writing is not produced or is not delivered as ordered under subdivision (a) or (b), the court may issue any appropriate order. But if the prosecution does not comply in a criminal case, the court must strike the witness's testimony or - if justice so

requires - declare a mistrial.

    Rule 15-46. SDCL 19-19-613. Witness's prior statement. (a) Showing or disclosing the statement during examination. When examining a witness about the witness's prior statement, a party need not show it or disclose its contents to the witness. But the party must, on request, show it or disclose its contents to an adverse party's attorney.

    (b) Extrinsic evidence of a prior inconsistent statement. Extrinsic evidence of a witness's prior inconsistent statement is admissible only if the witness is given an opportunity to explain or deny the statement and an adverse party is given an opportunity to examine the witness about it, or if justice so requires. This subdivision (b) does not apply to an opposing party's statement under subdivision 19-19-801(d)(2).

    Rule 15-47. SDCL 19-19-614. Court's calling or examining a witness. (a) Calling. The court may call a witness on its own or at a party's request. Each party is entitled to cross-examine the witness.

    (b) Examining. The court may examine a witness regardless of who calls the witness.

    (c) Objections. A party may object to the court's calling or examining a witness either at that time or at the next opportunity when the jury is not present.

    Rule 15-48. SDCL 19-19-615. Excluding witnesses. At a party's request, the court must order witnesses excluded so that they cannot hear other witnesses' testimony. Or the court may do so on its own. But this rule does not authorize excluding:

    (a)    A party who is a natural person;
    (b)    An officer or employee of a party that is not a natural person, after being designated as the party's representative by its attorney;
    (c)    A person whose presence a party shows to be essential to resenting the party's claim or defense;
    (d)    A person authorized by statute to be present; or
    (e)    A victim of a crime and his parent or guardian following the victim's testimony.

ARTICLE VII. OPINIONS AND EXPERT TESTIMONY

    Rule 15-49. SDCL 19-19-701. Opinion testimony by lay witnesses. If a witness is not testifying as an expert, testimony in the form of an opinion is limited to one that is:

    (a)    Rationally based on the witness's perception;
    (b)    Helpful to clearly understanding the witness's testimony or to determining a fact in issue; and
    (c)    Not based on scientific, technical, or other specialized knowledge within the scope of § 19-19-702.

    Rule 15-50. SDCL 19-19-702. Testimony by expert. A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:

    (a)    The expert's scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
    (b)    The testimony is based on sufficient facts or data;
    (c)    The testimony is the product of reliable principles and methods; and
    (d)    The expert has reliably applied the principles and methods to the facts of the case.

    Rule 15-51. SDCL 19-19-703. Bases of opinion testimony by experts. An expert may base an

opinion on facts or data in the case that the expert has been made aware of or personally observed. If experts in the particular field would reasonably rely on those kinds of facts or data in forming an opinion on the subject, they need not be admissible for the opinion to be admitted. But if the facts or data would otherwise be inadmissible, the proponent of the opinion may disclose them to the jury only if their probative value in helping the jury evaluate the opinion substantially outweighs their prejudicial effect.

    Rule 15-52. SDCL 19-19-704. Opinion on an ultimate issue. In general - not automatically objectionable. An opinion is not objectionable just because it embraces an ultimate issue.

    Rule 15-53. SDCL 19-19-705. Disclosure of facts or data underlying expert opinion. Unless the court orders otherwise, an expert may state an opinion--and give the reasons for it--without first testifying to the underlying facts or data. But the expert may be required to disclose those facts or data on cross-examination.

    Rule 15-54. SDCL 19-19-706. Court-appointed expert witnesses. (a) Appointment process. On a party's motion or on its own, the court may order the parties to show cause why expert witnesses should not be appointed and may ask the parties to submit nominations. The court may appoint any expert that the parties agree on and any of its own choosing. But the court may only appoint someone who consents to act.

    (b) Expert's role. The court must inform the expert of the expert's duties. The court may do so in writing and have a copy filed with the clerk or may do so orally at a conference in which the parties have an opportunity to participate. The expert:

    (1)    Must advise the parties of any findings the expert makes;
    (2)    May be deposed by any party;
    (3)    May be called to testify by the court or any party; and
    (4)    May be cross-examined by any party, including the party that called the expert.

    (c) Compensation. The expert is entitled to a reasonable compensation, as set by the court. The compensation is payable as follows:

    (1)    In a criminal case or in a civil case involving just compensation under the Fifth Amendment, from any funds that are provided by law; and
    (2)    In any other civil case, by the parties in the proportion and at the time that the court directs - and the compensation is then charged like other costs.

    (d) Disclosing the appointment to the jury. The court may authorize disclosure to the jury that the court appointed the expert.

    (e) Parties' choice of their own experts. This rule does not limit a party in calling its own experts.

ARTICLE VIII. HEARSAY

    Rule 15-55. SDCL 19-19-801. Definitions that apply to this article--exclusions from hearsay. The following definitions apply under this article:

    (a)    Statement. "Statement" means a person's oral assertion, written assertion, or nonverbal conduct, if the person intended it as an assertion.
    (b)    Declarant. "Declarant" means the person who made the statement.
    (c)    Hearsay. "Hearsay" means a statement that:
        (1)    The declarant does not make while testifying at the current trial or hearing; and
        (2)    A party offers in evidence to prove the truth of the matter asserted in the statement.
    (d)    Statements that are not hearsay. A statement that meets the following conditions is not hearsay:


        (1)    A declarant-witness's prior statement. The declarant testifies and is subject to cross-examination about a prior statement, and the statement:
            (A)    Is inconsistent with the declarant's testimony and was given under penalty of perjury at a trial, hearing, or other proceeding or in a deposition;
            (B)    Is consistent with the declarant's testimony and is offered to rebut an express or implied charge that the declarant recently fabricated it or acted from a recent improper influence or motive in so testifying; or
            (C)    Identifies a person as someone the declarant perceived earlier.
        (2)    An opposing party's statement. The statement is offered against an opposing party and:
            (A)    Was made by the party in an individual or representative capacity;
            (B)    Is one the party manifested that it adopted or believed to be true;
            (C)    Was made by a person whom the party authorized to make a statement on the subject;
            (D)    Was made by the party's agent or employee on a matter within the scope of that relationship and while it existed; or
            (E)    Was made by the party's coconspirator during and in furtherance of the conspiracy.

The statement must be considered but does not by itself establish the declarant's authority under (C); the existence or scope of the relationship under (D); or the existence of the conspiracy or participation in it under (E).

    Rule 15-56. SDCL 19-19-802. Rule against hearsay. Hearsay is not admissible unless any of the following provide otherwise:

    (1)    A statute;
    (2)    These rules; or
    (3)    Other rules prescribed by the Supreme Court.

    Rule 15-57. SDCL 19-19-803. Exceptions to the rule against hearsay--regardless of whether the declarant is available as a witness. The statements described in this section are not excluded by the rule against hearsay, regardless of whether the declarant is available as a witness:

    (1)    Present sense impression. A statement describing or explaining an event or condition, made while or immediately after the declarant perceived it.
    (2)    Excited utterance. A statement relating to a startling event or condition, made while the declarant was under the stress of excitement that it caused.
    (3)    Then-existing mental, emotional, or physical condition. A statement of the declarant's then-existing state of mind (such as motive, intent, or plan) or emotional, sensory, or physical condition (such as mental feeling, pain, or bodily health), but not including a statement of memory or belief to prove the fact remembered or believed unless it relates to the validity or terms of the declarant's will.
    (4)    Statement made for medical diagnosis or treatment. A statement that:
        (A)    Is made for - and is reasonably pertinent to - medical diagnosis or treatment; and
        (B)    Describes medical history; past or present symptoms or sensations; their inception; or their general cause.
    (5)    Recorded recollection. A record that:
        (A)    Is on a matter the witness once knew about but now cannot recall well enough to testify fully and accurately;
        (B)    Was made or adopted by the witness when the matter was fresh in the witness's memory; and
        (C)    Accurately reflects the witness's knowledge.
        If admitted, the record may be read into evidence but may be received as an exhibit only if offered by an adverse party.
    (6)    Records of regularly conducted business activity. A record of an act, event, condition,

opinion, or diagnosis if:
        (A)    The record was made at or near the time by - or from information transmitted by - someone with knowledge;
        (B)    The record was kept in the course of a regularly conducted activity of a business, organization, occupation, or calling, whether or not for profit;
        (C)    Making the record was a regular practice of that activity;
        (D)    All these conditions are shown by the testimony of the custodian or another qualified witness, or by a certification that complies with a rule or a statute permitting certification; and
        (E)    The opponent does not show that the source of information or the method or circumstances of preparation indicate a lack of trustworthiness.
    (7)    Absence of a record of a regularly conducted activity. Evidence that a matter is not included in a record as described in subdivision (6) if:
        (A)    The evidence is admitted to prove that the matter did not occur or exist;
        (B)    A record was regularly kept for a matter of that kind; and
        (C)    The opponent does not show that the possible source of the information or other circumstances indicate a lack of trustworthiness.
    (8)    Public records. A record or statement of a public office if:
        (A)    It sets out:
            (i)    The office's activities;
            (ii)    A matter observed while under a legal duty to report, but not including, in a criminal case, a matter observed by law-enforcement personnel; or
            (iii)    In a civil case or against the government in a criminal case, factual findings from a legally authorized investigation; and
        (B)    The opponent does not show that the source of information or other circumstances indicate a lack of trustworthiness.
    (9)    Public records of vital statistics. A record of a birth, death, or marriage, if reported to a public office in accordance with a legal duty.
    (10)    Absence of public record. Testimony -- or a certification under § 19-19-902 -- that a diligent search failed to disclose a public record or statement if:
        (A)    The testimony or certification is admitted to prove that:
            (i)    The record or statement does not exist; or
            (ii)    A matter did not occur or exist, if a public office regularly kept a record or statement for a matter of that kind; and
        (B)    In a criminal case, a prosecutor who intends to offer a certification provides written notice of that intent at least fourteen days before trial, and the defendant does not object in writing within seven days of receiving the notice - unless the court sets a different time for the notice or the objection.
    (11)    Records of religious organizations concerning personal or family history. A statement of birth, legitimacy, ancestry, marriage, divorce, death, relationship by blood or marriage, or similar facts of personal or family history, contained in a regularly kept record of a religious organization.
    (12)    Certificates of marriage, baptism, and similar ceremonies. A statement of fact contained in a certificate:
        (A)    Made by a person who is authorized by a religious organization or by law to perform the act certified;
        (B)    Attesting that the person performed a marriage or similar ceremony or administered a sacrament; and
        (C)    Purporting to have been issued at the time of the act or within a reasonable time after it.
    (13)    Family records. A statement of fact about personal or family history contained in a family record, such as a Bible, genealogy, chart, engraving on a ring, inscription on a portrait, or engraving on an urn or burial marker.
    (14)    Records of documents that affect an interest in property. The record of a document that purports to establish or affect an interest in property if:
        (A)    The record is admitted to prove the content of the original recorded document,

along with its signing and its delivery by each person who purports to have signed it;
        (B)    The record is kept in a public office; and
        (C)    A statute authorizes recording documents of that kind in that office.
    (15)    Statements in documents that affect an interest in property. A statement contained in a document that purports to establish or affect an interest in property if the matter stated was relevant to the document's purpose - unless later dealings with the property are inconsistent with the truth of the statement or the purport of the document.
    (16)    Statements in ancient documents. A statement in a document that is at least twenty years old and whose authenticity is established.
    (17)    Market reports and similar commercial publications. Market quotations, lists, directories, or other compilations that are generally relied on by the public or by persons in particular occupations.
    (18)    Statements in learned treatises, periodicals, or pamphlets. A statement contained in a treatise, periodical, or pamphlet if:
        (A)    The statement is called to the attention of an expert witness on cross-examination or relied on by the expert on direct examination; and
        (B)    The publication is established as a reliable authority by the expert's admission or testimony, by another expert's testimony, or by judicial notice.
        If admitted, the statement may be read into evidence but not received as an exhibit.
    (19)    Reputation concerning personal or family history. A reputation among a person's family by blood, adoption, or marriage - or among a person's associates or in the community concerning the person's birth, adoption, legitimacy, ancestry, marriage, divorce, death, relationship by blood, adoption, or marriage, or similar facts of personal or family history.
    (20)    Reputation concerning boundaries or general history. A reputation in a community - arising before the controversy - concerning boundaries of land in the community or customs that affect the land, or concerning general historical events important to that community, state, or nation.
    (21)    Reputation concerning character. A reputation among a person's associates or in the community concerning the person's character.
    (22)    Judgment of a previous conviction. Evidence of a final judgment of conviction if:
        (A)    The judgment was entered after a trial or guilty plea, but not a nolo contendere plea;
        (B)    The conviction was for a crime punishable by death or by imprisonment for more than a year;
        (C)    The evidence is admitted to prove any fact essential to the judgment; and
        (D)    When offered by the prosecutor in a criminal case for a purpose other than impeachment, the judgment was against the defendant.
        The pendency of an appeal may be shown but does not affect admissibility.
    (23)    Judgments involving personal, family, or general history, or a boundary. A judgment that is admitted to prove a matter of personal, family, or general history, or boundaries, if the matter:
        (A)    Was essential to the judgment; and
        (B)    Could be proved by evidence of reputation.

    Rule 15-58. SDCL 19-19-804. Exceptions to rule against hearsay--when declarant unavailable as witness. (a) Criteria for being unavailable. A declarant is considered to be unavailable as a witness if the declarant:

    (1)    Is exempted from testifying about the subject matter of the declarant's statement because the court rules that a privilege applies;
    (2)    Refuses to testify about the subject matter despite a court order to do so;
    (3)    Testifies to not remembering the subject matter;
    (4)    Cannot be present or testify at the trial or hearing because of death or a then-existing infirmity, physical illness, or mental illness; or
    (5)    Is absent from the trial or hearing and the statement's proponent has not been able, by

process or other reasonable means, to procure:
        (A)    The declarant's attendance, in the case of a hearsay exception under subdivision (b)(1); or
        (B)    The declarant's attendance or testimony, in the case of a hearsay exception under subdivision (b)(2),(3), or (4).
But this subdivision (a) does not apply if the statement's proponent procured or wrongfully caused the declarant's unavailability as a witness in order to prevent the declarant from attending or testifying.

    (b) Exceptions. The following are not excluded by the rule against hearsay if the declarant is unavailable as a witness:

    (1)    Former testimony. Testimony that:
        (A)    Was given as a witness at a trial, hearing, or lawful deposition, whether given during the current proceeding or a different one; and
        (B)    Is now offered against a party who had - or, in a civil case, whose predecessor in interest had - an opportunity and similar motive to develop it by direct, cross-, or redirect examination.
    (2)    Statement under the belief of imminent death. In a prosecution for homicide or in a civil case, a statement that the declarant, while believing the declarant's death to be imminent, made about its cause or circumstances.
    (3)    Statement against interest. A statement that:
        (A)    A reasonable person in the declarant's position would have made only if the person believed it to be true because, when made, it was so contrary to the declarant's proprietary or pecuniary interest or had so great a tendency to invalidate the declarant's claim against someone else or to expose the declarant to civil or criminal liability; and
        (B)    Is supported by corroborating circumstances that clearly indicate its trustworthiness, if it is offered in a criminal case as one that tends to expose the declarant to criminal liability.
    (4)    Statement of personal or family history. A statement about:
        (A)    The declarant's own birth, adoption, legitimacy, ancestry, marriage, divorce, relationship by blood, adoption, or marriage, or similar facts of personal or family history, even though the declarant had no way of acquiring personal knowledge about that fact; or
        (B)    Another person concerning any of these facts, as well as death, if the declarant was related to the person by blood, adoption, or marriage or was so intimately associated with the person's family that the declarant's information is likely to be accurate.
    (5)    Decedent's statements. In actions, suits, or proceedings by or against the representatives of deceased persons including proceedings for the probate of wills, any statement of the deceased whether oral or written shall not be excluded as hearsay, provided that the trial judge shall first find as a fact that the statement was made by decedent, and that it was in good faith and on decedent's personal knowledge.
    (6)    Statement offered against a party that wrongfully caused the declarant's unavailability. A statement offered against a party that wrongfully caused - or acquiesced in wrongfully causing - the declarant's unavailability as a witness, and did so intending that result.

    Rule 15-59. SDCL 19-19-805. Hearsay within hearsay. Hearsay within hearsay is not excluded by the rule against hearsay if each part of the combined statements conforms with an exception to the rule.

    Rule 15-60. SDCL 19-19-806. Attacking and supporting the declarant. When a hearsay statement - or a statement described in subdivision 19-19-801(d)(2)(C), (D), or (E) -- has been admitted in evidence, the declarant's credibility may be attacked, and then supported, by any evidence that would be admissible for those purposes if the declarant had testified as a witness. The

court may admit evidence of the declarant's inconsistent statement or conduct, regardless of when it occurred or whether the declarant had an opportunity to explain or deny it. If the party against whom the statement was admitted calls the declarant as a witness, the party may examine the declarant on the statement as if on cross-examination.

    Rule 15-61. SDCL 19-19-807. Residual exception. (a) In general. Under the following circumstances, a hearsay statement is not excluded by the rule against hearsay even if the statement is not specifically covered by a hearsay exception in § 19-19-803 or 19-19-804.

    (1)    The statement has equivalent circumstantial guarantees of trustworthiness;
    (2)    It is offered as evidence of a material fact;
    (3)    It is more probative on the point for which it is offered than any other evidence that the proponent can obtain through reasonable efforts; and
    (4)    Admitting it will best serve the purposes of these rules and the interests of justice.

    (b) Notice. The statement is admissible only if, before the trial or hearing, the proponent gives an adverse party reasonable notice of the intent to offer the statement and its particulars, including the declarant's name and address, so that the party has a fair opportunity to meet it.

ARTICLE IX. AUTHENTICATION AND IDENTIFICATION

    Rule 15-62. SDCL 19-19-901. Authenticating or identifying evidence. (a) In general. To satisfy the requirement of authenticating or identifying an item of evidence, the proponent must produce evidence sufficient to support a finding that the item is what the proponent claims it is.

    (b) Examples. The following are examples only - not a complete list - of evidence that satisfies the requirement:

    (1)    Testimony of a witness with knowledge. Testimony that an item is what it is claimed to be.
    (2)    Nonexpert opinion about handwriting. A nonexpert's opinion that handwriting is genuine, based on a familiarity with it that was not acquired for the current litigation.
    (3)    Comparison by an expert witness or the trier of fact. A comparison with an authenticated specimen by an expert witness or the trier of fact.
    (4)    Distinctive characteristics and the like. The appearance, contents, substance, internal patterns, or other distinctive characteristics of the item, taken together with all the circumstances.
    (5)    Opinion about a voice. An opinion identifying a person's voice - whether heard firsthand or through mechanical or electronic transmission or recording - based on hearing the voice at any time under circumstances that connect it with the alleged speaker.
    (6)    Evidence about a telephone conversation. For a telephone conversation, evidence that a call was made to the number assigned at the time to:
        (A)    A particular person, if circumstances, including self-identification, show that the person answering was the one called; or
        (B)    A particular business, if the call was made to a business and the call related to business reasonably transacted over the telephone.
    (7)    Evidence about public records. Evidence that:
        (A)    A document was recorded or filed in a public office as authorized by law; or
        (B)    A purported public record or statement is from the office where items of this kind are kept.
    (8)    Evidence about ancient documents or data compilations. For a document or data compilation, evidence that it:
        (A)    Is in a condition that creates no suspicion about its authenticity;
        (B)    Was in a place where, if authentic, it would likely be; and
        (C)    Is at least twenty years old when offered.
    (9)    Evidence about a process or system. Evidence describing a process or system and showing

that it produces an accurate result.
    (10)    Methods provided by a statute or rule. Any method of authentication or identification allowed by a state statute or a rule prescribed by the Supreme Court.

    Rule 15-63. SDCL 19-19-902. Evidence that is self-authenticating. The following items of evidence are self-authenticating. They require no extrinsic evidence of authenticity in order to be admitted.

    (1)    Domestic public documents that are sealed and signed. A document that bears:
        (A)    A seal purporting to be that of the United States; any state, district, commonwealth, territory, or insular possession of the United States; the former Panama Canal Zone; the Trust Territory of the Pacific Islands; a political subdivision of any of these entities; or a department, agency, or officer of any entity named above; and
        (B)    A signature purporting to be an execution or attestation.
    (2)    Domestic public documents that are not sealed but are signed and certified. A document that bears no seal if:
        (A)    It bears the signature of an officer or employee of an entity named in subdivision (1)(A); and
        (B)    Another public officer who has a seal and official duties within that same entity certifies under seal - or its equivalent - that the signer has the official capacity and that the signature is genuine.
    (3)    Foreign public documents. A document that purports to be signed or attested by a person who is authorized by a foreign country's law to do so. The document must be accompanied by a final certification that certifies the genuineness of the signature and official position of the signer or attester - or of any foreign official whose certificate of genuineness relates to the signature or attestation or is in a chain of certificates of genuineness relating to the signature or attestation. The certification may be made by a secretary of a United States embassy or legation; by a consul general, vice consul, or consular agent of the United States; or by a diplomatic or consular official of the foreign country assigned or accredited to the United States. If all parties have been given a reasonable opportunity to investigate the document's authenticity and accuracy, the court may, for good cause, either:
        (A)    Order that it be treated as presumptively authentic without final certification; or
        (B)    Allow it to be evidenced by an attested summary with or without final certification.
    (4)    Certified copies of public records. A copy of an official record - or a copy of a document that was recorded or filed in a public office as authorized by law - if the copy is certified as correct by:
        (A)    The custodian or another person authorized to make the certification; or
        (B)    A certificate that complies with subdivision (1), (2) or (3), inclusive, or complying with any law of the United States or state thereof.
    (5)    Official publications. A book, pamphlet, or other publication purporting to be issued by a public authority.
    (6)    Newspapers and periodicals. Printed material purporting to be a newspaper or periodical.
    (7)    Trade inscriptions and the like. An inscription, sign, tag, or label purporting to have been affixed in the course of business and indicating origin, ownership, or control.
    (8)    Acknowledged documents. A document accompanied by a certificate of acknowledgment that is lawfully executed by a notary public or another officer who is authorized to take acknowledgments.
    (9)    Commercial paper and related documents. Commercial paper, a signature on it, and related documents, to the extent allowed by general commercial law.
    (10)    Presumptions under a statute. A signature, document, or anything else that a statute of this state declares to be presumptively or prima facie genuine or authentic.
    (11)    Certified domestic records of a regularly conducted activity. The original or copy of a domestic record that meets the requirements of subdivision 19-19-803(6)(A) - (C) as shown by a certification of the custodian or another qualified person that complies with a statute or a rule prescribed by the Supreme Court. Before the trial or hearing, the

proponent must give an adverse party reasonable written notice of the intent to offer the record - and must make the record and certification available for inspection - so that the party has a fair opportunity to challenge them.
    (12)    Certified foreign records of a regularly conducted activity. In a civil case, the original or copy of a foreign record that meets the requirements of subdivision(11), modified as follows: the certification, rather than complying with a statute or Supreme Court rule, must be signed in a manner that, if falsely made, would subject the maker to a criminal penalty in the country where the certification is signed. The proponent must also meet the notice requirements of subdivision (11).

    Rule 15-64. SDCL 19-19-903. Subscribing witnesses. A subscribing witness's testimony is necessary to authenticate a writing only if required by the law of the jurisdiction that governs its validity.

ARTICLE X. CONTENTS OF WRITINGS, RECORDINGS AND PHOTOGRAPHS

    Rule 15-65. SDCL 19-19-1001. Definitions that apply to this article. (a) A "writing" consists of letters, words, numbers, or their equivalent set down in any form.

    (b) A "recording" consists of letters, words, numbers, or their equivalent recorded in any manner.

    (c) A "photograph" means a photographic image or its equivalent stored in any form.

    (d) An "original" of a writing or recording means the writing or recording itself or any counterpart intended to have the same effect by the person who executed or issued it. For electronically stored information, "original" means any printout - or other output readable by sight - if it accurately reflects the information. An "original" of a photograph includes the negative or a print from it.

    (e) A "duplicate" means a counterpart produced by a mechanical, photographic, chemical, electronic, or other equivalent process or technique that accurately reproduces the original.

    (f) "TDD," or "TTY," any auxiliary aids or services consisting of assistive listening or transcription systems which allow the reception or transmission of aurally delivered communication and materials for the benefit of individuals with hearing, speech, or physical impairments.

    Rule 15-66. SDCL 19-19-1002. Requirement of the original. An original writing, recording, or photograph is required in order to prove its content unless this chapter or rules adopted by the Supreme Court of this state, or a state statute provides otherwise.

    Rule 15-67. SDCL 19-19-1003. Admissibility of duplicates. A duplicate is admissible to the same extent as the original unless a genuine question is raised about the original's authenticity or the circumstances make it unfair to admit the duplicate.

    Rule 15-68. SDCL 19-19-1004. Admissibility of other evidence of content. An original is not required and other evidence of the content of a writing, recording, or photograph is admissible if:

    (a)    All the originals are lost or destroyed, and not by the proponent acting in bad faith;
    (b)    An original cannot be obtained by any available judicial process;
    (c)    The party against whom the original would be offered had control of the original; was at that time put on notice, by pleadings or otherwise, that the original would be a subject of proof at the trial or hearing; and fails to produce it at the trial or hearing; or
    (d)    The writing, recording, or photograph is not closely related to a controlling issue.

    Rule 15-69. SDCL 19-19-1005. Copies of public records to prove content. The proponent may use a copy to prove the content of an official record - or of a document that was recorded or filed in

a public office as authorized by law - if these conditions are met: the record or document is otherwise admissible; and the copy is certified as correct in accordance with subdivision 19-19-902(4) or is testified to be correct by a witness who has compared it with the original. If no such copy can be obtained by reasonable diligence, then the proponent may use other evidence to prove the content.

    Rule 15-70. SDCL 19-19-1006. Summaries to prove content. The proponent may use a summary, chart, or calculation to prove the content of voluminous writings, recordings, or photographs that cannot be conveniently examined in court. The proponent must make the originals or duplicates available for examination or copying, or both, by other parties at a reasonable time and place. And the court may order the proponent to produce them in court.

    Rule 15-71. SDCL 19-19-1007. Testimony or statement of a third party to prove content. The proponent may prove the content of a writing, recording, or photograph by the testimony, deposition, or written statement of the party against whom the evidence is offered. The proponent need not account for the original.

    Rule 15-72. SDCL 19-19-1008. Functions of the court and jury. Ordinarily, the court determines whether the proponent has fulfilled the factual conditions for admitting other evidence of the content of a writing, recording, or photograph under § 19-19-1004 or 19-19-1005. But in a jury trial, the jury determines--in accordance with subdivision 19-19-104(b)--any issue about whether:

    (a)    An asserted writing, recording, or photograph ever existed;
    (b)    Another one produced at the trial or hearing is the original; or
    (c)    Other evidence of content accurately reflects the content.

    IT IS FURTHER ORDERED that rules 15-17 through 15-72 shall become effective January 1, 2016.

    DATED at Pierre, South Dakota, this 19th day of October, 2015.

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\239.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\240.wpd
CHAPTER 240

SCR 16-01

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE ADOPTION
OF A NEW RULE RELATING TO
ESTABLISHING A JUVENILE
GRADUATED RESPONSE GRID RULE 16-01
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the adoption of a new rule relating to establishing a juvenile graduated response grid, and the Court having considered the proposed rule thereto and being fully advised in the premises, now, therefore, it is


    ORDERED that the adoption of a new rule relating to establishing a juvenile graduated response grid be and it is hereby adopted to read in its entirety as follows:

    Section 1. Pursuant to SDCL 26-7A-125, the Supreme Court hereby adopts the following juvenile graduated response grid and rules to guide court services officers in determining the appropriate response to a violation or compliance with the conditions of juvenile probation. It is the policy of the Unified Judicial System that violations of probation be addressed in a timely, consistent and reasonable manner by use of a graduated response grid. The use of graduated sanctions and incentives is intended to achieve public safety by holding juvenile offenders accountable for their behavior and reinforcing positive behavior.

    Section 2. The response grids attached to this rule as Appendix A are hereby adopted for statewide use by court services officers. The response grids shall be utilized statewide for all juvenile delinquency and child in need of supervision (CHINS) cases supervised through court services.

    Section 3. Court services officers should utilize the incentives grid to provide incentives for compliance with the conditions of probation. Incentives should be individualized to the juvenile and provided in a manner that acknowledges achievements and reinforces positive behavior.

    Section 4. These response grids shall be made a standard condition of juvenile probation and the juvenile probationer shall be informed that they may seek review of any moderate or serious sanction imposed by requesting review by the chief court services officer for the judicial circuit. In the event the supervising court services officer is the chief court services officer, the probationer may request review of such determination by a chief court services officer from another judicial circuit which shall be assigned by the director of trial court services. The decision made by the chief court services officer concerning the imposition of a sanction is final. Any requests for review shall be documented by the court services officer.

    Section 5. The response grid applies to conduct that is a violation of the terms and conditions of juvenile probation including an arrest for a new offense. If a juvenile probationer is arrested for a violent offense or an offense that involves substantial threat of violence or a sex offense the court services officer shall submit a probation violation report to the state's attorney and file a petition to modify or revoke probation with the court. If a juvenile probationer's conduct demonstrates a significant risk to public safety the court services officer shall immediately submit a probation violation report.

    Section 6. A court services officer shall respond to a violation through the application of the sanctions grid by utilizing the appropriate cells based on the juvenile probationer's risk level and the type of violation. The imposition of sanctions within a grid cell is vested to the discretion of the supervising court services officer. A court services officer may deviate up or down from the cell with supervisor approval. Not all responses in each grid may be appropriate for all violations or for all juvenile probationers. Graduated responses may be used individually or in combination and include formal and informal responses to probation violations. The imposition of any sanction or incentive shall be documented by the court services officer.

    Section 7. Court services officers shall consider the risk the juvenile probationer poses to the community, the severity of any violation, prior history on probation, previous violations or sanctions, and the deterrent effect when imposing a sanction. The court services officer shall also employ positive reinforcement for a probationer's compliance with the conditions of supervision and completion of benchmarks during the term of supervision.

    Section 8. Detention shall only be requested in conjunction with the filing of a formal petition to modify or revoke probation.

    Section 9. A sanction cannot extend the term of probation.


    Section 10. There is hereby established a juvenile response grid oversight committee to consider recommendations to the graduated response grid and make such changes as the committee determines appropriate by majority vote. The committee shall be appointed by the Chief Justice of the South Dakota Supreme Court. The committee shall consist of nine members and be composed of two judges, two chief court services officers, one deputy chief court services officer, two court services officers that are not chief or deputy chief court services officers, one state's attorney and one defense attorney. The director of trial court services shall also serve as a non-voting member of the committee. The committee shall meet within 180 days from appointment and at least annually thereafter.

    Section 11. Nothing in this rule shall be construed to limit the sentencing court's ability to respond to a probation violation or modify the terms and conditions of probation.

    Section 12. This rule shall become effective February 1, 2016.

    IT IS FURTHER ORDERED that this rule shall become effective immediately.

    DATED at Pierre, South Dakota, this 22nd day of January, 2016.


APPENDIX
SOUTH DAKOTA'S JUVENILE SUPERVISORY RESPONSES (JSR)
-Sanctions-

Undesired Behavior - Severity Level   Low/Admin Risk Juvenile (YLS)   Medium Risk Juvenile (YLS)   High Risk Juvenile (YLS)  
Minor
* Disruptive Behaviors/Disobedience
* Dishonesty
* Failure to Complete Assignment/Directive
* Truancy
* Failure to Attend Probation Meeting
* Association with Prohibited Peers
* Failure to Pay Court- Ordered Financials
* Failure to Complete Community Service
* School Infractions
* Runaway
* Driving without Permission
* Positive Drug Test
* PBT of .07 or lower
* House Arrest Violation
*Intimidating/Threatening Others
* Gang Association (minor-colors, drawings, etc.)
* Curfew Violation
* Missed Programming Appointment (first time)
* Refusal to UA//PBT
* Admitted Ingestion  
* Verbal Consequence
* Adjust Curfew
* Homework Verification
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Written Assignment
* Youth Proposed Sanction
* Discretion of CSO, Appropriate per Violation  
* Verbal Consequence
* Adjust Curfew
* Homework Verification
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Written Assignment
* Youth Proposed Sanction
* Behavior Modification Group
* Discretion of CSO, Appropriate per Violation  
* Verbal Consequence
* Adjust Curfew
* Homework Verification
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem- solving meeting with CSO
* Behavior Modification Group
* Discretion of CSO, Appropriate per Violation  
Moderate
* Continuous or Repetitive Undesired Minor Behaviors
* New Nonviolent Offense
* Gang Involvement- Moderate Vandalism, Graffiti, etc.
* Discharged Unsuccessfully from Programming
* PBT of .08 or higher  
* Verbal Consequence
* Adjust Curfew
* Behavior Modification Group
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* House Arrest
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Weekly Counseling Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem-Solving Meeting with CSO
* Review of Future Sanctions if Behaviors Continue
* Day/Evening Reporting
* Discretion of CSO, Appropriate per Violation  
* Verbal Consequence
* Adjust Curfew
* Behavior Modification Group
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* House Arrest
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Restrict Privileges/Friends
* School Progress Reports
* Weekly Counseling Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem-Solving Meeting with CSO
* Review of Future Sanctions if Behaviors Continue
* Day/Evening Reporting
* Electronic Monitoring
* Parent-Child Conference
* Discretion of CSO, Appropriate per Violation  
* Verbal Consequence
* Adjust Curfew
* Behavior Modification Group
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* House Arrest
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Restrict Privileges/Friends
* School Progress Reports
* Weekly Counseling Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem-Solving Meeting with CSO
* Review of Future Sanctions if Behaviors Continue
* Day/Evening Reporting
* Electronic Monitoring
* Parent-Child Conference
* Discretion of CSO, Appropriate per Violation  
Serious
* Continuous or Repetitive Undesired Minor Behaviors
* Continuous or Repetitive Undesired Moderate Behaviors
* Tampering with UA
* Positive UA other than THC
* Contact with victim Possession of unauthorized weapon
* *New violent offense or substantial threat of violence
* *Sex offense
* *Abscond  
* Verbal Consequence
* Adjust Curfew
* Behavior Modification Group
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* House Arrest
* Electronic Monitoring
* Court Observation
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Weekly Counseling Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem-Solving Meeting with CSO
* Day/Evening Reporting
* Violation Report with the Court-Detention Request
* Increase in Risk Level/Supervision Level
* Discretion of CSO, Appropriate per Violation  
* Verbal Consequence
* Adjust Curfew
* Behavior Modification Group
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* House Arrest
* Electronic Monitoring
* Court Observation
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Weekly Counseling Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem-Solving Meeting with CSO
* Day/Evening Reporting
* Violation Report with the Court-Detention Request
* Discretion of CSO, Appropriate per Violation  
* Verbal Consequence
* Adjust Curfew
* Behavior Modification Group
* CD Evaluation
* Community Service
* Counseling Service
* Support Parental Rules
* House Arrest
* Electronic Monitoring
* Court Observation
* Increase Face to Face
* Increase Phone Contact
* Limit Overnight with Friends
* Parent Proposed Sanction
* Parent-Child Conference
* Restrict Privileges/Friends
* School Progress Reports
* Weekly Counseling Reports
* Written Assignment
* Youth Proposed Sanction
* Scheduled Problem-Solving Meeting with CSO
* Day/Evening Reporting
* Violation Report with the Court-Detention Request
* Discretion of CSO, Appropriate per Violation  

*Officer is required to submit a probation violation. For all other cells the officer has discretion to submit a probation violation report as appropriate in response to behavior.
APPENDIX
SOUTH DAKOTA'S JUVENILE SUPERVISORY RESPONSES (JSR)
-Incentives-

Desired Behaviors   Low Level Incentive   Moderate Level Incentive   High Level Incentive  
Compliant

(Contemplation Stage of Change)
(Preparation Stage of Change)

Desired behavior would be that the juvenile is meeting the conditions of probation or has shown an improvement in meeting those conditions.

- More problem recognition
- Decisional balance
- Increased commitment
- Ready to make choices
- Sharing plans for change
- Change becomes priority
- Shift in view from past to future  

* Verbal Praise
* Written Praise
* Drawing from a Prize Bucket
* Encourage School Staff Recognition for Child
* Decrease Phone Contact
* Parent and Juvenile Recommended Incentives  
* Verbal Praise
* Written Praise
* Drawing from a Prize Bucket
* Encourage School Staff Recognition for Child
* Decrease Phone Contact
* Parent and Juvenile Recommended Incentives
* Reduce meetings
* Eliminate Electronic Monitoring
* Allow overnights with Friends  
* Verbal Praise
* Written Praise
* Drawing from a Prize Bucket
* Encourage School Staff Recognition for Child
* Decrease Phone Contact
* Parent and Juvenile Recommended Incentives
* Reduce meetings
* Eliminate Electronic Monitoring
* Allow overnights with Friends
* Reduced UAs/PBTs
* Job Shadowing
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
* Extend Curfew  
Demonstrated Improvement

(Action Stage of Change)

Desired behavior would be a juvenile's progress in meeting the conditions of probation and showing a commitment for improvement that goes beyond mere compliance.

- Strategies for change are chosen and pursued
- Active modification of behavior, thoughts, feelings, and environment
- Treatment and/or self help  

* Verbal Praise
* Written Praise
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
*Reduced UAs/PBTs
* Drawing from a Prize Bucket
* Reduce Meetings
* Allow Overnights with Friends
* Encourage School Staff Recognition for Child
* Extend Curfew
* Decrease Phone Contact
* Graduation Certificate/Ceremonies for Accomplishments
* Reduce Telephone Contact
* Higher Level Financial Rewards (gift cards, activity fees, tickets, recreational passes, memberships over $15 etc.)
* Job Shadowing
* Recommend Reduced Probation Term
* Eliminate Electronic Monitoring
* Acknowledgment by the Judge for Positive Behaviors
* Parent and Juvenile Recommended Incentives
* College/Career Planning Session
* School Spirit Wear  
* Verbal Praise
* Written Praise
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
*Reduced UAs/PBTs
* Drawing from a Prize Bucket
* Reduce Meetings
* Allow Overnights with Friends
* Encourage School Staff Recognition for Child
* Decrease Phone Contact
* Graduation Certificate/Ceremonies for Accomplishments
* Reduce Telephone Contact
* Higher Level Financial Rewards (gift cards, activity fees, tickets, recreational passes, memberships over $15 etc.)
* Job Shadowing
* Eliminate Electronic Monitoring
* Acknowledgment by the Judge for Positive Behaviors
* Parent and Juvenile Recommended Incentives
* College/Career Planning Session
* School Spirit Wear
* Backpack Program-food, school supplies
* Increase Driving Privileges
* Extend Curfew
* Reduce Community Service Hours  
* Verbal Praise
* Written Praise
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
*Reduced UAs/PBTs
* Drawing from a Prize Bucket
* Reduce Meetings
* Allow Overnights with Friends
* Encourage School Staff Recognition for Child
* Decrease Phone Contact
* Graduation Certificate/Ceremonies for Accomplishments
* Reduce Telephone Contact
* Higher Level Financial Rewards (gift cards, activity fees, tickets, recreational passes, memberships over $15 etc.)
* Job Shadowing
* Recommend Reduced Probation Term
* Eliminate Electronic Monitoring
* Acknowledgment by the Judge for Positive Behaviors
* Parent and Juvenile Recommended Incentives
* College/Career Planning session
* School Spirit Wear
* Backpack Program-food, school supplies
* Increase Driving Privileges
* Extend Curfew
* Reduce Community Service Hours  
Significant Improvement

(Action Stage of Change)
(Maintenance Stage of Change)

Desired behavior would indicate a demonstration of commitment and progress to meeting the terms of probation and would be associated with a level of improvement that shows effective change by the juvenile.

- Sustaining new habits
- Working to prevent relapses
- Taking personal responsibilities and credit for change
- Watching out for dangerous people, places and things
- Moving toward a balanced lifestyle  

* Verbal Praise
* Written Praise
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
* Reduced UAs/PBTs
* Drawing from a Prize Bucket
* Reduce Meetings
* Allow Overnights with Friends
* Encourage School Staff Recognition for Child
* Backpack Program-food, school supplies
* Increase Driving Privileges
* Extend Curfew
* Decrease Phone Contact
* Graduation Certificate/Ceremonies for Accomplishments
* Reduce Telephone Contact
* Higher Level Financial Rewards (gift cards, activity fees, tickets, recreational passes, memberships over $15 etc.)
* Photo ID Costs
* Job Shadowing
* Recommend Reduced Probation Term
* Eliminate Electronic Monitoring
* Acknowledgment by the Judge for Positive Behaviors
* Parent and Juvenile Recommended Incentives
* Reduce Community Service Hours
* Recommend Court Reduction in Fines or Fees
* College/Career Planning Session
* School Spirit Wear  
* Verbal Praise
* Written Praise
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
* Reduced UAs/PBTs
* Drawing from a Prize Bucket
* Reduce Meetings
* Allow Overnights with Friends
* Encourage School Staff Recognition for Child
* Backpack Program-food, school supplies
* Increase Driving Privileges
* Extend Curfew
* Decrease Phone Contact
* Graduation Certificate/Ceremonies for Accomplishments
* Reduce Telephone Contact
* Higher Level Financial Rewards (gift cards, activity fees, tickets, recreational passes, memberships over $15 etc.)
* Photo ID Costs
* Job Shadowing
* Recommend Reduced Probation Term
* Eliminate Electronic Monitoring
* Acknowledgment by the Judge for Positive Behaviors
* Parent and Juvenile Recommended Incentives
* Reduce Community Service Hours
* Recommend Court Reduction in Fines or Fees
* College/Career Planning Session
* School Spirit Wear  
* Verbal Praise
* Written Praise
* Moderate Financial Reward (gift cards, activity fees, tickets, recreational passes, memberships under $15, etc.)
* Reduced Probation Condition
* Reduced UAs/PBTs
* Drawing from a Prize Bucket
* Reduce Meetings
* Allow Overnights with Friends
* Encourage School Staff Recognition for Child
* Backpack Program-food, school supplies
* Increase Driving Privileges
* Extend Curfew
* Decrease Phone Contact
* Graduation Certificate/Ceremonies for Accomplishments
* Reduce Telephone Contact
* Higher Level Financial Rewards (gift cards, activity fees, tickets, recreational passes, memberships over $15 etc.)
* Photo ID Costs
* Job Shadowing
* Recommend Reduced Probation Term
* Eliminate Electronic Monitoring
* Acknowledgment by the Judge for Positive Behaviors
* Parent and Juvenile Recommended Incentives
* Reduce Community Service Hours
* Recommend Court Reduction in Fines or Fees
* College/Career Planning Session
* School Spirit Wear  
  * Payment for GED Testing   * Payment for GED Testing   * Payment for GED Testing  

* Incentives should be individualized to the juvenile and this list is not exclusive.
**Incentives should be applied with a 4:1 ratio when compared to Sanctions.
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\240.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\241.wpd
CHAPTER 241

SCR 16-02

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE AMENDMENT
OF SDCL 15-6-30(f) RULE 16-02
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the amendment of SDCL 15-6-30(f), and the Court having considered the proposed amendment thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that SDCL 15-6-30(f) be and it is hereby amended to read in its entirety as follows:

    15-6-30(f). Certification and filing by officer--Exhibits--Copies.

            (1)    The officer shall certify on the deposition that the witness was duly sworn by the officer and that the deposition is a true record of the testimony given by the witness. This certificate must be in writing and accompany the record of the deposition. The officer shall then securely seal the deposition in an envelope endorsed with the title of the action and marked "Deposition of (here insert name of witness)" and shall promptly send it the deposition to the attorney who arranged for the transcript or recording, who must store it under conditions that will protect it against loss, destruction, tampering, or deterioration. Documents and things produced for inspection during the examination of the witness, shall, upon the request of a party, be marked for identification and annexed to and returned with the deposition, and may be inspected and copied by any party, except that (A) the person producing the materials may substitute copies to be marked for identification, if he affords to all parties fair opportunity to verify the copies by comparison with the originals, and (B) if the person producing the materials requests their return, the officer shall mark them, give each party an opportunity to inspect and copy them, and return them to the person producing them, and the materials may then be used in the same manner as if annexed to and returned with the deposition. Any party may move for an order that the original be annexed to and returned with the deposition to the court, pending final disposition of the case.

            (2)    Upon payment of reasonable charges therefor, the officer shall furnish a copy of the transcript or other recording of the deposition to any party or to the deponent.

            (3)    The party taking the deposition shall give prompt notice of its filing to all other parties.

    IT IS FURTHER ORDERED that this rule shall become effective July 1, 2016.

    DATED at Pierre, South Dakota, this 17th day of March, 2016.

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\241.wpd




Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\242.wpd
CHAPTER 242

SCR 16-03

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE AMENDMENT
OF SDCL CH. 15-26A
APPENDIX OF FORMS, Form 3 RULE 16-03
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the amendment of SDCL Ch. 15-26A, Appendix of Forms, Form 3, and the Court having considered the proposed amendment thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that SDCL Ch. 15-26A, Appendix of Forms, Form 3, be and it is hereby amended to read in its entirety as follows:

SDCL Ch. 15-26A, APPENDIX OF FORMS, Form 3

Form 3 APPEAL TRANSCRIPTS

1.    Appeal transcripts shall consist of volumes of 250 pages or less, prepared on 81/2" x 11" white opaque paper with 25 prenumbered, double-spaced lines per page.

2.    Each page shall have ruled margins with 3/4" top and bottom margins, a 11/2" left margin, and a ½" right margin.

3.    The transcript shall be typed using pica type with 10 characters per inch; questions shall start with a "Q" flush at the left margin, with two spaces between "Q" and the text of the question; answers shall start with an "A" flush at the left margin with two spaces between "A" and the beginning of the text of the answer; colloquy, such as "THE COURT," "MR. JONES," etc., shall start three spaces from the left margin.

4.    The pages shall be consecutively numbered throughout the entire transcript (not according to volume) located at the bottom center of each page upper right-hand corner.

5.    Each volume shall be securely bound with a protective cover upon which or through which the following shall appear: (a) a 11/2" blank space at the top of the page; (b) the trial court name, location and case number; (c) the case name; (d) the type of proceeding; (e) the date of the proceeding reported in that volume; (f) the name of the judge before whom the proceedings occurred; (g) appearances; (h) the volume number and the pages included in the volume.

6.    An index of witnesses, motions, and exhibits shall follow the cover page of the first volume of each transcript; each major event of the proceeding shall be listed separately and identified by the transcript page number at which it begins.

    IT IS FURTHER ORDERED that this rule shall become effective July 1, 2016.



    DATED at Pierre, South Dakota, this 17th day of March, 2016.

_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\242.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\243.wpd
CHAPTER 243

SCR 16-04

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE AMENDMENT
OF SDCL 16-12B-1.1 RULE 16-04
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the amendment of SDCL 16-12B-1.1, and the Court having considered the proposed amendment thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that SDCL 16-12B-1.1 be and it is hereby amended to read in its entirety as follows:

    16-12B-1.1. Number of magistrate judges.The number of magistrate judges in the judicial circuits established by § 16-5-1.2 is fixed as follows:

            (1)    First Circuit: Two full-time magistrate judges;
            (2)    Second Circuit: Four full-time magistrate judges;
            (3)    Third Circuit: One Two full-time magistrate judge judges;
            (4)    Fourth Circuit: One full-time and one part-time magistrate judge;
            (5)    Fifth Circuit: One full-time magistrate judge;
            (6)    Sixth Circuit: One full-time magistrate judge; and
            (7)    Seventh Circuit: Four full-time magistrate judges.

    IT IS FURTHER ORDERED that this rule shall become effective July 1, 2016.

    DATED at Pierre, South Dakota, this 17th day of March, 2016.

_______________
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CHAPTER 244

SCR 16-05

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE ADOPTION
OF A NEW RULE RELATING TO
ESSENTIAL ELIGIBILITY REQUIREMENT
FOR ADMISSION TO BE DESIGNATED
IMMEDIATELY BEFORE SDCL 16-16-2.3 RULE 16-05
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the adoption of a new rule relating to the essential eligibility requirement for admission to be designated immediately before SDCL 16-16-2.3, and the Court having considered the proposed rule thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that the adoption of a new rule relating to the essential eligibility requirement for admission be and it is hereby adopted to read in its entirety as follows:

    16-16-1.1. Essential eligibility requirements for admission. Applicants must be able to demonstrate the following essential eligibility requirements for the practice of law:

    (1)    The ability to be honest and candid with clients, lawyers, courts, the board, and others;

    (2)    The ability to reason, recall complex factual information, and integrate that information with complex legal theories;

    (3)    The ability to communicate with clients, lawyers, courts, and others with a high degree of organization and clarity;

    (4)    The ability to use good judgment on behalf of clients and in conducting one's professional business;

    (5)    The ability to conduct oneself with respect for and in accordance with the law;

    (6)    The ability to avoid acts that exhibit disregard for the rights or welfare of others;

    (7)    The ability to comply with the requirements of the Rules of Professional Conduct, applicable state, local, tribal, and federal laws, regulations, statutes, and any applicable order of a court or tribunal;

    (8)    The ability to act diligently and reliably in fulfilling one's obligations to clients, lawyers, courts, and others;

    (9)    The ability to use honesty and good judgment in financial dealings on behalf of oneself, clients, and others; and



    (10)    The ability to comply with deadlines and time constraints.

    IT IS FURTHER ORDERED that this rule shall become effective July 1, 2016.

    DATED at Pierre, South Dakota, this 17th day of March, 2016.

_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\245.wpd
CHAPTER 245

SCR 16-06

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE AMENDMENT
OF SDCL 19-19-1101 RULE 16-06
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the amendment of SDCL 19-19-1101, and the Court having considered the proposed amendment thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that SDCL 19-19-1101 be and it is hereby amended to read in its entirety as follows:

    19-19-1101. Applicability of chapter.Except as otherwise provided in this section, this chapter applies to all actions and proceedings in the courts of this state. This chapter other than those sections with respect to privileges does not apply in the following situations:

            (1)    The determination of questions of fact preliminary to admissibility of evidence when the issue is to be determined by the court under subdivision 19-19-104(a).

            (2)    Small claims court proceedings.

            (3)    Proceedings for extradition or rendition.

            (4)    Sentencing, or granting or revoking probation.

            (5)    Issuance of warrants for arrest, criminal summonses, and search warrants.

            (6)    Proceedings with respect to release on bail or otherwise.

            (7)    Disposition hearings, temporary custody hearings and other hearings other than adjudicatory hearings in juvenile court.

            (8)    Contempt proceedings in which the court may act summarily.

    IT IS FURTHER ORDERED that this rule shall become effective July 1, 2016.

    DATED at Pierre, South Dakota, this 29th day of March, 2016.

_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\246.wpd
CHAPTER 246

SCR 16-07

SUPREME COURT RULES AND ORDERS


IN THE SUPREME COURT
OF THE

STATE OF SOUTH DAKOTA

* * * *

IN THE MATTER OF THE ADOPTION
OF AMENDMENTS AND REPEALS IN
PART TO SDCL CH. 16-19
DISCIPLINE OF ATTORNEYS RULE 16-07 through 16-67
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    A hearing was held on January 13, 2016, at Pierre, South Dakota, relating to the amendments and repeals of SDCL Ch.16-19--Discipline of Attorneys, and the Court having considered the proposed amendments and repeals thereto and being fully advised in the premises, now, therefore, it is

    ORDERED that certain rules in SDCL Ch. 16-10--Discipline of Attorneys be and they are hereby amended to read in part as follows:

SDCL CHAPTER 16-19
DISCIPLINE OF ATTORNEYS

    Rule 16-07. SDCL 16-19-21. Attorneys subject to discipline by Supreme Court and board. Any attorney admitted to practice law in this state and any attorney specially admitted by a court of this state for a particular proceeding is subject to the inherent disciplinary jurisdiction of the Supreme Court and the board established by § 16-19-24.

    Rule 16-08. SDCL 16-19-22. Supreme Court exclusive power to disbar or suspend attorney. The Supreme Court has the sole power to disbar and strike from the roster any attorney or to suspend any attorney from the practice for such time not to exceed three years, to publicly censure an attorney, and to impose probation or conditions as shall seem just for cause shown.

    Rule 16-09. SDCL 16-19-23. Powers reserved to other courts to control proceedings. Nothing contained in this chapter denies any court powers necessary for that court to maintain control over proceedings conducted before it, including the power of contempt.

    Rule 16-10. SDCL 16-19-24. Disciplinary board of State Bar--Appointment and terms of members--Vacancies. There is hereby established a seven member board to be known as "the disciplinary board of the State Bar of South Dakota" (hereinafter referred to as the "board"), consisting of six active members of the State Bar appointed by the President of the State Bar and one lay member who shall be a resident of South Dakota of twenty-one years of age or more, appointed by the Chief Justice. Attorney vacancies shall be filled by the President of the State Bar, and a lay vacancy shall be filled by the Chief Justice.

    The term of service for members shall be one term of five years. Except as provided herein, no member shall serve for more than five years. An appointment to fill an unexpired term shall not constitute an appointment prohibiting an appointment for a subsequent term provided that the appointment for an unexpired term does not exceed three years. It is the intent of this rule to provide

for the orderly and systematic rotation of board members such that not more than two lawyer members complete terms each calendar year. In the event of death, disability or resignation, resulting in multiple members completing terms in a single calendar year and in order to restore the orderly and systematic rotation of board membership, the term of appointment by the appointing person may be either shortened or extended, not to exceed two years' deviation from a five year term.

    Rule 16-11. SDCL 16-19-25. Chairman and vice-chairman of the board. The President of the State Bar shall designate one attorney member as chair of the board and may designate another attorney member as vice-chair.

    Rule 16-12. SDCL 16-19-26. Meetings of the board-Quorum-Vote required for action. The board shall meet at least quarterly at times fixed by the chair. Four members shall constitute a quorum. The board shall act only with the concurrence of four or more members. The board may meet by the use of audio or visual medium.

    Rule 16-13. SDCL 16-19-27. Compensation of members of the board. Attorney members of the board shall receive no compensation for their services but may be reimbursed for their travel and other expenses incidental to the performance of their duties. The lay member shall receive compensation at the rate of one hundred dollars per day in addition to travel and other expenses incidental to the performance of his or her duties.

    Rule 16-14. SDCL 16-19-28. Disqualification of board members in particular proceedings--Ad hoc appointments to restore full membership. Board members shall refrain from taking part in any proceeding in which a judge, similarly situated, would be required to abstain. In the event of recusal of attorney members of the board, the President of the State Bar shall appoint active members of the State Bar, preferably members with previous service on the board to restore the board to full membership. In the event of the recusal of the lay member, the Chief Justice shall appoint a lay person having the qualifications set forth in subdivision 16-19-24. Each such member shall fulfill all the responsibilities of the board member replaced.

    Rule 16-15. SDCL 16-19-30. Complaints and testimony privileged--board and staff immune from suit. Complaints submitted to the board or testimony with respect thereto shall be absolutely privileged and no civil action predicated thereon may be instituted. Members of the board, the board's counsel, board staff and any personnel or legal counsel appointed by the board shall be immune from suit for any conduct in the course of their official duties.

    Rule 16-16. SDCL 16-19-31. License to practice law as trust-Duty to conform to standards. A license to practice law in this state is a privilege and a continuing proclamation by the Supreme Court that a licensed attorney is an officer of the court, is fit to be entrusted with legal and judicial matters, and to aid in the administration of justice. It is the duty of an attorney to act, both professionally and personally, in conformity with the standards of conduct governing members of the bar.

    Rule 16-17. SDCL 16-19-32. Violations by attorneys as grounds for discipline. An act or omission by an attorney, individually or in concert with others, which violate the attorney's oath of office, the laws governing attorney conduct, or the Rules of Professional Conduct, or other disciplinary rules adopted by the Supreme Court, is misconduct and is grounds for discipline, whether or not the act or omission occurred in the course of an attorney-client relationship.

    Rule 16-18. SDCL 16-19-33. Specific grounds for discipline of attorneys. The following shall similarly constitute misconduct and shall be grounds for discipline:

    (1)    Conviction of a crime as set forth in § 16-19-36;
    (2)    Disobedience to, or violation of an order of the court requiring the attorney to act or refrain from acting in a particular manner;
    (3)    Violation of any of the duties of an attorney or counselor as prescribed in chapter 16-18;


    (4)    Conviction of any of the offenses relating to attorneys or counselors set out in chapter 16-18;
    (5)    Violation of any bylaw, rule, or regulation duly adopted by the State Bar and approved by the Supreme Court;
    (6)    Engaging or attempting to engage in the practice of law in this state, not being an active member of the State Bar in good standing;
    (7)    Violation of the prohibitions of § 16-18-29;
    (8)    Violation of § 16-18-20.1 or 20.2;
    (9)    Violation of §§ 16-18-34 to 16-18-34.5, inclusive, by a supervising attorney or by a legal assistant under the attorney's supervision;
    (10)    Violation of the South Dakota Code of Judicial Conduct, appendix to chapter 16-2.

    Rule 16-19. SDCL 16-19-34. Deceit and collusion as grounds for disbarment--Treble damages. An attorney and counselor who is guilty of deceit or collusion, or consents thereto, with intent to deceive a court or judge, or party to an action or proceeding, is liable to discipline, and shall forfeit to the injured party treble damages to be recovered in a civil action.

    Rule 16-20. SDCL 16-19-35. Kinds of discipline authorized. Discipline for misconduct may be imposed as follows:

    (1)    Disbarment by the Supreme Court;
    (2)    Suspension by the Supreme Court for a specific period not to exceed three years;
    (3)    Placement on a probationary status by the Supreme Court for such period and with such conditions as the Supreme Court may specify;
    (4)    Public censure by the Supreme Court; and
    (5)    Private reprimand by the board.

    Rule 16-21. SDCL 16-19-35.1. Petition by board for temporary suspension. The board may petition the Supreme Court to temporarily suspend an attorney from the practice of law or to impose restrictions or conditions on the attorney's practice pending full investigation and disposition, where the attorney poses a risk or danger to clients, clients' property, or the public, where the board can demonstrate a substantial likelihood that the attorney will ultimately be disciplined, and where the charges under investigation, if ultimately proven, would likely result in a suspension or disbarment. The board counsel shall serve a copy of the petition upon the respondent attorney by certified mail. The respondent attorney shall file with the Supreme Court a response within ten days of service or at such time as the Supreme Court may direct, and serve a copy of the response on the board counsel. The Supreme Court may schedule a hearing before the Supreme Court or order a hearing to be conducted by a referee. To the extent possible, these proceedings shall be conducted on an expedited basis. The Supreme Court may deny the petition, suspend the attorney pending formal proceedings, or impose such restrictions or conditions for the continued practice of law upon the respondent attorney, or enter protective and remedial orders as the Supreme Court deems appropriate.

    A temporarily suspended attorney shall not practice law or act as a legal assistant except as provided by §§ 16-18-34.4 to 16-18-34.7, inclusive.

    Rule 16-22. SDCL 16-19-36. Attorney's conviction of serious crime to be reported to Supreme Court--Definition of serious crime. Any attorney and the clerk of any court in this state in which an attorney is convicted of a serious crime, except those misdemeanor traffic offenses or traffic ordinance violations not involving the use of alcohol or drugs, shall within ten days of said conviction transmit a certificate thereof to the Supreme Court. The term "serious crime" includes any felony and any lesser crime a necessary element of which, as determined by the statutory or common law definition of such crime, involves improper conduct as an attorney, interference with the administration of justice, false swearing, misrepresentation, fraud, willful failure to file income tax returns, deceit, bribery, extortion, misappropriation, theft, or an attempt or a conspiracy or solicitation of another to commit a serious crime.


    Rule 16-23. SDCL 16-19-37. Suspension from practice on conviction of serious crime--Setting aside order. If any attorney has been convicted of a serious crime as defined in § 16-19-36, the Supreme Court may enter an order immediately suspending the attorney from engaging in the practice of law, pending final disposition of a disciplinary proceeding to be commenced upon such conviction. Upon good cause shown, the Supreme Court may set aside such order suspending the attorney from engaging in the practice of law when it appears in the interest of justice so to do. An order suspending an attorney from the practice of law pursuant to this section is a suspension of the attorney for the purpose of §§ 16-19-74 to 16-19-82, inclusive, unless the Supreme Court shall otherwise order.

    Rule 16-24. SDCL 16-19-38. Reinstatement of suspended attorney on reversal of conviction--Pending proceedings unaffected. An attorney suspended under the provisions of § 16-19-37 will be reinstated immediately upon the filing of a certificate demonstrating that the underlying conviction of a serious crime has been reversed but the reinstatement will not terminate any disciplinary proceeding then pending against the attorney.

    Rule 16-25. SDCL 16-19-39. Reference for formal disciplinary proceedings on conviction of serious crime. Upon the receipt of notice of conviction of an attorney for a serious crime, the Supreme Court shall also refer the matter to the board for the institution of a formal proceeding in which the sole issue to be determined shall be the extent of the final discipline to be imposed. A disciplinary proceeding so instituted will not be brought to hearing until all appeals from the conviction are concluded.

    Rule 16-26. SDCL 16-19-40. Parties initiating investigations of attorney's conduct. An investigation of an attorney's conduct as possible grounds for discipline may be initiated by:

    (1)    The Supreme Court;
    (2)    The board;
    (3)    The Attorney General; or
    (4)    An individual.

    Rule 16-27. SDCL 16-19-41. Reference for investigation and report in proceeding initiated by Supreme Court. If the investigation of an attorney's conduct is initiated by the Supreme Court the matter shall be referred to the board for an investigation and report as provided in this chapter.

    Rule 16-28. SDCL 16-19-42. Complaint and reference for investigation and report in proceeding initiated by Attorney General. If the investigation of an attorney's conduct is initiated by the Attorney General, the Attorney General shall file a written complaint with the Supreme Court which shall refer the matter to the board for an investigation and report pursuant to §§ 16-19-45 to 16-19-64, inclusive.

    Rule 16-29. SDCL 16-19-43. Investigation or reference for investigation and report in proceeding initiated by the board. If the investigation of an attorney's conduct is initiated by the board, it may proceed to conduct an investigation pursuant to §§ 16-19-50 to 16-19-64, inclusive.

    Rule 16-30. SDCL 16-19-44. Individual complaint filed with board or Supreme Court--Reference for investigation and report.

    (A) An individual may initiate an investigation of an attorney's conduct by filing a written and signed complaint with the board secretary or designee in such form as the board may prescribe. The board shall proceed on such complaint in accordance with §§ 16-19-50 to 16-19-64, inclusive.

    (B) The board secretary or designee shall dismiss complaints outside the board's jurisdiction, frivolous complaints and complaints which fail to allege facts which give rise to the board's jurisdiction utilizing summary judgment standards set forth in chapter 15-6. Conclusions, opinions, suppositions and arguments shall not be considered. Copies of such dismissals shall be provided to

the board. A complainant dissatisfied with such a dismissal may, within ten days of such dismissal request in writing a review by the board which review shall be considered by the board at its next regular or special meeting.

    (C) In the alternative, an individual may initiate an investigation of an attorney's conduct by filing with the clerk of the Supreme Court a written complaint. A complaint of attorney misconduct made directly to the Supreme Court shall comply with the following requirements:

    (1)    The complaint shall be signed and sworn to by the complainant.
    (2)    The complaint shall fully state all the facts relied upon by the complainant and shall identify all sources of the factual information. Conclusions, opinions, and suppositions of the complainant shall not be considered.
    (3)    If the alleged misconduct arose in a criminal case, the complaint shall state the county, court, and file number of the case file, whether there was a conviction, and the status of all appellate review, including pending habeas corpus or other post-conviction relief. Copies of any final decision of appellate or habeas corpus review, or post-conviction proceedings, or if pending, of the petition, shall be attached.
    (4)    The complaint shall state whether complainant has previously filed a complaint with the board alleging similar misconduct by the attorney. A copy of any board's disposition letter shall be attached.

    (D) If the complaint fails to comply with any of the requirements of subsection (C), the clerk of the Supreme Court shall forward the complaint to the secretary-treasurer of the State Bar and the complaint shall be treated as if it had been initiated with the board pursuant to § 16-19-44(A).

    (E) In the event that all requirements of this rule have been met, the Supreme Court shall proceed as follows:

    (1)    If the Supreme Court shall determine the alleged facts raise an issue of noncompliance with the Rules of Professional Conduct, the Supreme Court shall refer the matter to either the board or the Attorney General for an investigation and report pursuant to §§ 16-19-45 to 16-19-64, inclusive.
    (2)    Complaints that are frivolous, unfounded in fact, or fail to raise an issue of noncompliance with applicable Rules of Professional Conduct shall be dismissed.
    (3)    Allegations of ineffective assistance of counsel or other attorney conduct which has been raised on appeal or habeas is deemed to be res judicata to the extent addressed by the reviewing court. The complaint process is neither a substitute for nor a precursor to a habeas corpus or post-conviction petition and complaints alleging misconduct that would appropriately be alleged in a habeas corpus or post-conviction petition shall be deemed premature and dismissed.
    (4)    If the Supreme Court determines the board has previously investigated the complaint, the Supreme Court may, in its discretion, order the board to file a report with the court reporting the nature and results of the board's investigation. Upon receipt of the report, the Supreme Court may determine whether the complaint presents new or additional facts which warrant further investigation. If the Supreme Court determines it is warranted, it may order further investigation, or, if not warranted, may dismiss the complaint.

    Rule 16-31. SDCL 16-19-45. Investigation by board on reference--Report and recommendation filed with Supreme Court. When an investigation of an attorney's conduct has been referred to the board for investigation it shall proceed to make a thorough investigation as provided in this chapter.

    Rule 16-32. SDCL 16-19-46. Proceedings not to be abated for failure to prosecute, settlement or restitution. Failure of a complainant to sign a complaint or to prosecute a charge, or settlement or compromise between the complainant and the attorney, shall not justify abatement of the processing of any complaint.


    Rule 16-33. SDCL 16-19-50. Accused attorney to be given opportunity to state position. Except in matters dismissed in accordance with 16-19-44(B), no disposition shall be undertaken by the board or recommendation made by the Attorney General until the accused attorney shall have been afforded a reasonable opportunity to state the attorney's position with respect to the allegations.

    Rule 16-34. SDCL 16-19-52. Notice to attorney of complaint and allegations. In an investigation by the board or by the Attorney General, notification shall be given to the attorney that a complaint has been made and the nature of the allegations of misconduct.

    Rule 16-35. SDCL 16-19-53. Methods of investigation to be used-Informal conference. An investigation by the board or by the Attorney General may entail inquiries by mail, consultation with the accused attorney, taking sworn statements or depositions, and investigation by the board's counsel or the Attorney General's staff.

    Rule 16-36. SDCL 16-19-54. Attorney's duty to respond to board. Every attorney shall promptly and appropriately respond to any complaint or letter provided by any member of the board. In the event of failure to respond an attorney is subject to private reprimand by the board, or, after hearing on recommendation of the board, to discipline by the Supreme Court.

    Rule 16-37. SDCL 16-19-55. Subpoena power of board and Attorney General--Disobedience as contempt. A member of the board, the board secretary, its counsel or the Attorney General may issue a subpoena requiring any witness to attend at any place within the state and requiring such witness to produce pertinent books, papers, and documents, including client files and records of client funds, and may administer oaths and take testimony in regard to such matters. The willful failure of any person to respond to a subpoena, or the willful refusal of any person to testify, is a contempt against the Supreme Court and may be punished accordingly.

    Rule 16-38. Repeal of SDCL 16-19-56. Subpoena of attorney's record of client funds. The records required by § 16-18-20.1 may be subpoenaed by the attorney general or any member of the Disciplinary Board or its counsel in connection with any disciplinary investigation.

    Rule 16-39. SDCL 16-19-58. Certificate of conviction as evidence against attorney. A certificate of conviction of an attorney for any crime shall be conclusive evidence of the commission of that crime in any disciplinary proceeding based upon the conviction.

    Rule 16-40. SDCL 16-19-59. Dismissal of complaint on finding not meritorious. If the board determines after an investigation that the complaint is not meritorious, it shall dismiss the complaint and notify the complainant, the accused attorney and such other persons as the board may deem appropriate. If the Attorney General determines after an investigation that the complaint is not meritorious, the Attorney General shall report such findings to the Supreme Court and recommend dismissal.

    Rule 16-41. SDCL 16-19-60. Conditions imposed on attorney on finding of meritorious complaint--Dismissal on compliance. If it is determined after an investigation by the board that the complaint is meritorious, but that formal disciplinary proceedings are not warranted, the board and the attorney may agree in writing to hold the proceedings in abeyance for an appropriate period, provided the attorney throughout the period complies with specified reasonable conditions, including board access to the attorney's healthcare and medical information. Upon satisfactory compliance, the board may thereafter dismiss the proceedings and notify the complainant and such other persons as the board deems appropriate. If, after an investigation, the Attorney General finds such action warranted, the Attorney General shall report the Attorney General's findings to the Supreme Court and recommend that such action be taken by the board.

    Rule 16-42. SDCL 16-19-61. Notice to attorney of report and proposal for private reprimand. If it is determined after an investigation and hearing that the complaint is meritorious and a private reprimand is warranted, a written report of the findings and proposed action shall be prepared and

sent by certified mail to an accused attorney.

    Rule 16-43. SDCL 16-19-62. Response by attorney to proposal for private reprimand--Report and findings by board. An accused attorney shall have twenty days in which to agree to, or object to the findings and proposed action and demand that formal proceedings be initiated in lieu of a private reprimand. Silence shall be deemed to be an agreement with the findings and proposed action. After twenty days or upon the accused attorney's agreement the board shall report its findings to the Supreme Court. Upon filing, the findings constitute a private reprimand.

    Rule 16-44. Repeal of SDCL 16-19-63. Demand by attorney for formal proceedings in lieu of private reprimand. If an attorney does not accede to a private reprimand either affirmatively or by silence within the twenty-day period provided therefor in § 16-19-62, he may within that same twenty-day period demand as of right that formal proceedings be initiated against him pursuant to § 16-19-67.

    Rule 16-45. SDCL 16-19-65. Consent by attorney to disbarment-Contents of affidavit. An attorney who is the subject of an investigation into, or a pending proceeding involving allegations of misconduct may consent to disbarment, but only by delivering to the board an affidavit to be prepared by the board in the following form:

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

In Re:                     )
______________________________)      RESIGNATION
(Name)             )
            )
State of _______________________)ss
            )
County of _____________________)

    I, _______, being duly sworn on oath, depose and say that my business address is _______ (Building No. and Name, if any, or Box No.), _______ (Street address, if any), _______ (City), _______ (State), _______ (Zip Code); that my residence address is _______ (No. Street), _______ (City), _______ (State), _______ (Zip Code), and that I hereby tender my resignation from membership in the State Bar of South Dakota and request and consent to my removal from the roster of those admitted to practice before the courts of this state and from membership in the State Bar.

    I am aware that there is pending against me a formal complaint concerning alleged misconduct and/or that complaints, allegations or instances of alleged misconduct by me are under investigation by the State Bar Disciplinary Board and that such complaints, allegations and/or instances include:

    (Brief description of alleged misconduct, including designation of provisions of the South Dakota Rules of Professional Conduct and statutes, if any, violated--and incorporation by reference of any formal complaint in a pending disciplinary proceeding.)

    I do not desire to contest or defend against the above-described complaints, allegations or instances of alleged misconduct. I am aware of the rules of the Supreme Court and of the bylaws and rules of procedure of the State Bar of South Dakota with respect to admission, discipline, resignation and reinstatement of members of the State Bar, including SDCL 16-19-80. I understand that I shall not be permitted to practice law or act as a legal assistant within the State of South Dakota except as provided by §§ 16-18-34.4 to 16-18-34.7, inclusive. I understand that any future application by me for reinstatement will be treated as an application by one who has been disbarred for misconduct, and that, on such application, I shall not be entitled to a reconsideration or reexamination of the facts, complaints, allegations or instances of alleged misconduct upon which this resignation is predicated. I am aware that the Supreme Court may impose judgment for costs pursuant to SDCL 16-19-70.1.


    Dated at _______, this ____ day of _______, 20__.

______________________
(Signature of Attorney)

    Subscribed and sworn to before me this ____ day of _______, 20__.
______________________________________
Notary Public
My Commission Expires: _______________

    Rule 16-46. SDCL 16-19-67. Findings of fact, conclusions of law, and recommendation of investigating agency shall constitute a formal accusation. Formal disciplinary proceedings shall be conducted as follows:

    (1)    After investigation as provided in this chapter, the investigating agency may file with the Supreme Court, findings of fact, conclusions of law or conclusions pertaining to violations of applicable Rules of Professional Conduct, and a recommendation for formal discipline. Such filing constitutes a formal accusation against the respondent attorney.
    (2)    A copy of the formal accusation shall be served upon the respondent attorney by certified mail. Unless otherwise directed by the Supreme Court, the investigating agency shall continue to prosecute the formal proceedings. If the recommendation is for suspension or disbarment, it shall also include a finding as to the qualifications of the accused attorney to act as a legal assistant and a recommendation as to the restrictions or conditions of employment and supervision if the accused is allowed to act as a legal assistant under §§ 16-18-34.4 to 16-18-34.7, inclusive.
    (3)    The respondent attorney shall answer the formal accusation within thirty days and admit or deny the allegations therein. If the accused attorney admits the allegations or fails to answer the Supreme Court may proceed to render judgment.
    (4)    If the issue is joined it shall be tried by the Supreme Court which may refer the matter for the taking of testimony and the making of findings and recommendations.
    (5)    A reference may be to any circuit court judge or to a referee appointed by the Supreme Court in the same manner as provided for reference of cases in the circuit court so far as applicable.
    (6)    The reference shall include the files and records of the board's investigation of the accused attorney, including the transcript of any hearing conducted by the board.
    (7)    If the referee recommends suspension or disbarment the referee shall also make a finding as to the qualifications of the accused attorney to act as a legal assistant and a recommendation as to restrictions or conditions or employment and supervision if the accused is allowed to act as a legal assistant.

    Rule 16-47. Repeal of SDCL 16-19-68. Answer by attorney to formal accusation--Reference to receive evidence and recommend disposition--Judgment on admission by attorney. The accused attorney shall answer the formal accusation within thirty days and admit or deny the allegations therein; the issues joined thereon shall in all cases be tried by the Supreme Court, but the court may refer said matter for the taking of testimony and the making of findings and recommendations. Such reference may be to any circuit court judge in this state or to a referee or referees appointed by the court in the same manner as provided by law for the reference of cases in the circuit court so far as applicable. If the accused attorney admits the allegations or fails to answer the formal accusation, the court shall proceed to render such judgment as the case requires. If the referee recommends suspension or disbarment, the referee shall also make a finding as to the qualifications of the accused attorney to act as a legal assistant and make a recommendation as to the restrictions or conditions of employment and supervision if the accused is allowed to act as a legal assistant under §§ 16-18-34.4 to 16-18-34.7, inclusive.

    Rule 16-48. SDCL 16-19-70.1. Costs and expenses of Disciplinary proceedings.


    (a) State Bar of South Dakota. Costs and expenses incurred by the Disciplinary Board of the State Bar of South Dakota in the investigation or prosecution of any disciplinary or reinstatement proceeding under this chapter shall be paid by the State Bar, provided, however, that the expenses of a disciplinary proceeding may, in the discretion of the Supreme Court, be assessed against the attorney who is the subject of such proceeding.

    (b) Attorney General. The Attorney General shall pay the costs and expenses his office incurs in the investigation or prosecution of any disciplinary proceeding under this chapter.

    (c) Unified Judicial System. The Unified Judicial System shall pay the costs and expenses incurred by the referee, the court reporter and witnesses when a disciplinary action is referred to a referee under § 16-19-68.

    Rule 16-49. SDCL 16-19-70.2. Allowable costs and expenses. Expenses incurred by the board, the Attorney General, or the Unified Judicial System that were not covered by advance deposit and that have not been previously paid by the attorney who is the subject of a disciplinary or reinstatement proceeding may be assessed by the Supreme Court against said attorney in favor of the State of South Dakota and/or the State Bar of South Dakota according to their respective interests to cover the costs of a referee's mileage, meals, and rooms; a court reporter's mileage, meals, rooms, and transcript preparation; disciplinary counsel's mileage, meals, rooms, telephone charges, copying fees, and hourly charges for investigation and preparation for hearings, trials, and appeals, and appearances at hearings, trials, and appeals; witnesses' fees and mileage; and the board members' mileage, meals, and rooms, provided that proof of such costs shall be made as hereafter provided in § 16-19-70.3.

    Rule 16-50. SDCL 16-19-71. Advice to Supreme Court of discipline in another jurisdiction--Copy of order filed--Conclusive evidence of misconduct. All attorneys subjected to professional discipline in another jurisdiction, shall promptly inform the clerk of the Supreme Court and the board of such action. Upon being so informed, the clerk of the Supreme Court shall obtain a certified copy of such disciplinary order and file the same with the Supreme Court. Except as provided by § 16-19-74, a final adjudication in another jurisdiction that an attorney has been guilty of misconduct shall establish conclusively the misconduct for purposes of a disciplinary proceeding in this state.

    Rule 16-51. SDCL 16-19-72. Notice to attorney of disciplinary order from other jurisdiction. Upon receipt of a certified copy of an order demonstrating that an attorney admitted to practice in this state has been disciplined in another jurisdiction, the Supreme Court shall forthwith issue a notice directed to the attorney and a copy to the board containing:

    (1)    A copy of the order from the other jurisdiction; and
    (2)    An order directing that the attorney inform the Supreme Court, within thirty days from service of the notice, of any claim by the attorney predicated upon the grounds set forth in § 16-19-74 that the imposition of the identical discipline in this state would be unwarranted and the reasons therefor.
    (3)    Any claim by the attorney that imposition of identical discipline is unwarranted may be referred to the board for an investigation and report to the Supreme Court.
    (4)    In the event discipline imposed in another jurisdiction has been stayed, any reciprocal discipline in this state shall be deferred until such stay expires.

    Rule 16-52. Repeal of SDCL 16-19-73. Stay of reciprocal discipline on stay in other jurisdiction. In the event the discipline imposed in the other jurisdiction has been stayed there, any reciprocal discipline imposed in this state shall be deferred until such stay expires.

    Rule 16-53. SDCL 16-19-74. Imposition of identical reciprocal discipline--Grounds for other disposition. The Supreme Court shall impose the identical discipline unless the board or the attorney demonstrates, and the Supreme Court finds that on the record upon which the discipline is predicated

it clearly appears:

    (1)    That the procedure was so lacking in notice or opportunity to be heard as to constitute a deprivation of due process; or
    (2)    That there was such an infirmity of proof establishing the misconduct as to give rise to the clear conviction that the Supreme Court could not, consistent with its duty, accept as final the conclusion on that subject; or
    (3)    That the misconduct established warrants substantially different discipline in this state; or
    (4)    That the attorney's conduct subject of discipline in another jurisdiction has been or is currently under investigation by the board.

    Where the Supreme Court determines that any of said elements exist, the Supreme Court shall enter such other order as it deems appropriate.

    Rule 16-54. SDCL 16-19-76. Notice to courts of suspension or disbarment--Order for protection of clients. The clerk of the Supreme Court shall promptly transmit a certified copy of every order of suspension or disbarment to all judges in this state, and the presiding judge of each judicial circuit shall make such further order deemed necessary to fully protect the rights of the clients of the suspended or disbarred attorney.

    Rule 16-55. SDCL 16-19-77. Effective date of suspension or disbarment--New matters not to be accepted--Winding up of pending business. Unless the Supreme Court shall otherwise order, orders imposing suspension or disbarment shall be effective thirty days after entry. The disbarred or suspended attorney, after entry of the order, shall not accept any new retainer or engage as an attorney for another in any new case or legal matter of any nature. However, during the period from the entry date of the order and its effective date the attorney may wind up and complete on behalf of any client, all matters which were pending on the entry date.

    Rule 16-56. SDCL 16-19-78. Notice to office clients of disbarment or suspension. A disbarred or suspended attorney shall promptly notify, or cause to be notified, by certified mail, return receipt requested, all clients being represented in pending matters, other than litigation or administrative proceedings, of the attorney's disbarment or suspension and consequent inability to act as an attorney after the effective date of the disbarment or suspension and shall advise such clients to seek legal advice of the client's own choice elsewhere.

    Rule 16-57. SDCL 16-19-79. Notice to opposing counsel and clients involved in litigation of disbarment or suspension--Leave of court or agency to withdraw. A disbarred or suspended attorney shall promptly notify, or cause to be notified, by certified mail, return receipt requested, each client who is involved in pending litigation or administrative proceedings, and each attorney for an adverse party in such cases, of the disbarment or suspension and the attorney's consequent inability to act as an attorney after the effective date of the disbarment or suspension. The notice to be given to the client shall advise the client of the desirability and importance of prompt substitution of another attorney of the client's own choice.

    In the event the client does not obtain substitute counsel before the effective date of the disbarment or suspension, the disbarred or suspended attorney shall move in the court or agency in which the proceeding is pending for leave to withdraw.

    The notice to be given to the attorney or attorneys for an adverse party shall state the mailing address and place of residence of the client of the disbarred or suspended attorney.

    Rule 16-58. SDCL 16-19-80. Affidavit of compliance filed by disbarred or suspended attorney. Within ten days after the effective date of disbarment or suspension the disbarred or suspended attorney shall file with the Supreme Court an affidavit showing:


    (1)    That the attorney has fully complied with the provisions of the order and with this chapter; and with
    (2)    All other state, federal, and administrative jurisdictions to which the attorney is admitted to practice.
    (3)    Such affidavit shall also set forth the residence or other address of the disbarred or suspended attorney where communications to the attorney may thereafter be directed.

    Rule 16-59. SDCL 16-19-81. Record of compliance maintained by disbarred or suspended attorney--Condition precedent to reinstatement. A disbarred or suspended attorney shall keep and maintain records of the various steps taken under this chapter so that, in any subsequent proceeding, proof of compliance with this chapter and with the disbarment or suspension order will be available. Proof of compliance with this chapter is a condition precedent to any petition for reinstatement.

    Rule 16-60. SDCL 16-19-82. Noncompliance by attorney as contempt. The failure of an attorney, including an attorney who has been disbarred or suspended, to comply fully and promptly with any of the provisions of this chapter or with any order or judgment entered in disciplinary proceedings shall constitute contempt and shall be punishable as such by the Supreme Court.

    Rule 16-61. SDCL 16-19-83. Reinstatement order required before resumption of practice--Time of application--Waiting period after denial of reinstatement. No attorney suspended for more than three months or disbarred may resume practice until reinstated by order of the Supreme Court. A person who has been disbarred may not apply for reinstatement until the expiration of at least five years from the effective date of the disbarment. No petition for reinstatement under § 16-19-87 may be filed within one year following denial of a petition for reinstatement filed by or on behalf of the same person. An attorney suspended or disbarred shall not be permitted to act as a legal assistant except as provided by §§ 16-18-34.4 to 16-18-34.7, inclusive.

    Rule 16-62. SDCL 16-19-84. Petition and hearing on reinstatement--Advance cost deposit--Burden of proof. A petition for reinstatement by a disbarred or suspended attorney under § 16-19-87 may be filed with the secretary or designee of the board and shall be accompanied by a deposit in an amount to be set by the board to cover prior proceedings and anticipated expenses of the reinstatement proceeding. Upon receipt of the petition and the deposit the board shall promptly schedule a hearing at which the petitioner shall have the burden of demonstrating by clear and convincing evidence that the petitioner has the moral qualifications, competency and learning in law required for admission to practice law in this state and that petitioner's resumption of the practice of law within the state will not be detrimental to the integrity and standing of the bar or the administration of justice, or subversive of the public interest.

    Rule 16-63. SDCL 16-19-85. Participation by board counsel in hearing on reinstatement--Appearance by and examination of petitioner. In all proceedings before the board upon a petition for reinstatement, cross-examination of the witnesses and of the petitioner, and the submission of evidence, if any, in opposition to the petition shall be conducted by the board's counsel. Board members may inquire of the witnesses and of the petitioner into all matters required by § 16-19-84 for petitioner's readmission. The petitioner shall be present in person at the hearing and shall submit to such examination as the board deems proper.

    Rule 16-64. SDCL 16-19-86. Board findings and recommendation on reinstatement--Placement on Court calendar. After conducting a hearing on reinstatement, the board shall promptly file a report with the Supreme Court containing its findings and recommendations, together with the record. The Supreme Court shall then place the petition on the calendar for argument.

    Rule 16-65. SDCL 16-19-87. Dismissal of petition or order of reinstatement--Conditions imposed on petitioner. If the Supreme Court finds the petitioner for reinstatement unfit to resume the practice of law, the petition shall be dismissed. If the Supreme Court finds the petitioner fit to resume the practice of law, the Supreme Court shall enter a judgment of reinstatement. The judgment may make reinstatement conditional upon:



    (1)    The payment of all or part of the expenses of the reinstatement and all prior proceedings; and
    (2)    The making of partial or complete restitution to parties harmed by the misconduct which led to petitioner's suspension or disbarment; and
    (3)    The furnishing of proof of competency as may be required in the discretion of the Supreme Court, which proof may include certification by the bar examiners of petitioner's successful completion of examinations for admission to practice after the suspension or disbarment.

    Rule 16-66. SDCL 16-19-100. Retention of files and records of disbarred, suspended, or reinstated attorney. The board shall, unless otherwise ordered by the Supreme Court, retain its files and records of any attorney who has been disbarred, suspended, placed on probationary status, publicly censured, or who has been later reinstated after a prior discipline until such time as the attorney dies, at which time the records may be expunged.

APPENDIX TO CHAPTER 16-19

SOUTH DAKOTA SUPREME COURT DISCIPLINARY RULES [SUPERSEDED]

RULES OF PROCEDURE OF THE DISCIPLINARY BOARD
OF THE STATE BAR OF SOUTH DAKOTA


    Rule 16-67. These rules describe the usual procedures employed by the board in the discharge of its duties to investigate complaints alleging attorney misconduct. However, procedures may vary in individual cases according to the circumstances of the matter being investigated and the conduct of the respondent attorney as the board may in its discretion determine to be appropriate. Questions or requests for variance should be addressed to the member to whom a complaint has been assigned.

    1. Each complaint received by the board secretary or designee that is not dismissed pursuant to the provisions of § 16-19-44 shall be distributed to the members of the board and board counsel for investigation and assigned by the secretary or designee to one member of the board who shall administer the initial investigation. The secretary or designee shall:

    (a)    Acknowledge receipt and notify the complainant of the name and address of the board member to whom the complaint has been assigned;
    (b)    Provide a copy of the complaint to the respondent attorney who is the subject of the complaint along with the name and address of the assigned board member;
    (c)    Instruct the respondent attorney to respond in writing, not to exceed ten pages, to the assigned board member within ten days along with nine copies of the response for distribution; and
    (d)    Advise the complainant and the respondent attorney of the provisions of § 16-19-99 concerning confidentiality.

    2. Upon receipt of the respondent attorney's written response the assigned board member shall distribute copies to the board members and board counsel and shall mail a copy to the complainant for a written reply.

    3. The assigned member shall continue the investigation by mail or in person until the matter is ready for board determination and may engage the assistance of board counsel.

    4. The board may act on the complaint by mail or at a regular or special meeting as follows:

    (a)    Dismiss the complaint if the alleged facts do not constitute a violation of the rules governing attorney conduct or the attorneys' oath. The board may, by a separate and unanimous vote, expunge the respondent attorney's record of the dismissed complaint.
    (b)    Continue the investigation or take such further action with respect to the attorney's

conduct as the board deems appropriate.

    5. In the event that the board deems it appropriate to have a hearing before the board concerning the respondent attorney's alleged conduct, the hearing shall be conducted in the following manner:

    (a)    Notice shall be given to the respondent attorney by board counsel by certified mail, return receipt requested, not less than ten days prior to the hearing and shall include a reference to these rules and to the Rules of Professional Conduct.
    (b)    A transcript shall be kept by a court reporter.
    (c)    The chair or a member designated by the chair shall conduct the hearing with a quorum of the board present.
    (d)    The chair shall advise the respondent attorney of the right to be heard, to offer witnesses, to be represented by counsel and to have a record of the proceedings kept. The procedure shall be as follows:
        (1)    The respondent attorney, after being sworn or the respondent's counsel may make a statement and may examine the respondent attorney.
        (2)    Witnesses on behalf of the respondent attorney may testify after being sworn. Witnesses will be first examined by respondent attorney or respondent's counsel and thereafter by board counsel and members of the board.
        (3)    Respondent shall be examined by board counsel and board members.
        (4)    The complainant or other witnesses may be called and examined by board counsel and members of the board with cross examination by respondent or respondent's counsel.
        (5)    Respondent or respondent's counsel or both may make a closing statement subject to such time limits as the board may require.
        (6)    The board shall consider the matter off the record and out of hearing of the respondent and in closed session.
    (e)    The board may dismiss the complaint, caution or admonish the respondent attorney, impose conditions on respondent attorney pursuant to § 16-19-60, impose a private reprimand pursuant to § 16-19-61, or commence formal disciplinary proceedings pursuant to § 16-19-67, et.seq.
    (f)    If the board's decision is within the purview of § 16-19-61 the respondent attorney may, within ten days of receipt of the board's decision file written objections. The objections will be considered by the board by means of written correspondence among the members or at a special meeting if deemed appropriate.
    (g)    The board shall notify the respondent attorney by mail of changes, if any, in the findings and recommendations made as a result of the objections.
    (h)    The board shall notify the complainant of the board's decision when it is final.

    IT IS FURTHER ORDERED that these rules shall become effective July 1, 2016.

    DATED at Pierre, South Dakota, this 29th day of March, 2016.

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