Chapter 6

(House Bill 1051)

An Act to amend certain provisions relating to the small business credit initiative fund.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 1-53-15 be AMENDED:

1-53-15. There is established within the state treasury a fund to be known as the small business credit initiative fund for the purpose of making loans for economic development as permitted by the Small Business Jobs Act of 2010, 12 U.S.C. Chapter 54 (2021).

Section 2. That § 1-53-16 be AMENDED:

1-53-16. TheFor the purposes of §§ 1-53-15 to 1-53-19, inclusive, the Governor's Office Board of Economic Development may accept, expend, or loan for the purposes of §§ 1-53-15 to 1-53-19, inclusive, any funds previously received or to be obtained from federal sources and any funds to be obtained from gifts, contributions, or any other source if such acceptance and expenditure is reported as required by § 4-7-7.2.

Section 3. That § 1-53-17 be AMENDED:

1-53-17. Any repayment of loans and interest thereon shall must be receipted into the small business credit initiative fund and expended by the Governor's Office Board of Economic Development for the following purposes:

(1) The payment of administrative costs as permitted pursuant to U.S. Office of Management and Budget Circular A-87, Revised 2 C.F.R Part 200 Subpart E, as applicable, as in effect on January 1, 2012 2022;

(2) The payment of taxes and liens and for the procuring of legal services and any other services necessary to protect, recover, maintain, or liquidate the assets of the small business credit initiative fund as permitted pursuant to U.S. Office of Management and Budget Circular A-87, Revised 2 C.F.R Part 200 Subpart E, as applicable, as in effect on January 1, 2012 2022; and

(3) The purpose of making Making loans for economic development as permitted by the Small Business Jobs Act of 2010, 12 U.S.C. Chapter 54 (2021).

Section 4. That § 1-53-18 be AMENDED:

1-53-18. The Governor's Office Board of Economic Development may take title by foreclosure or transfer in lieu of foreclosure to any property given as security if the acquisition is necessary to protect or collect any small business credit initiative loan and may sell, transfer, or convey any such property to any responsible buyer.

Section 5. That § 1-53-19 be AMENDED:

1-53-19. The meetings and deliberations of the Governor's Office Board of Economic Development concerning small business credit initiative loans are confidential and are exempt from public disclosure. Any documentary material or data made or received by the Board of Economic Development or the Governor's Office of Economic Development for the purpose of acting upon an application for a small business credit initiative loan or administering the loan, to the extent that such material or data consists of trade secrets or commercial or financial information regarding the operation of such business, are not considered public records, and are exempt from disclosure. Nothing in this section prohibits the disclosure of confidential information to the extent necessary to collect or recoup the loan or as may be required under applicable federal law.

Signed March 18, 2022