Senate Report by Bryan Breitling
2023 Legislative Session Week Seven
As we near the end of the 2023 legislative session, major milestones are being achieved. Wednesday, Feb 22 was crossover day, when all bills need final action in the house of origin. Friday, Feb 24, was the last day for Joint Appropriations to pass appropriation bills to the house of origin. So, this past week was busy!
In our seventh week on the Senate floor, significant bill votes included SB185 – which would establish a committee on foreign investment in South Dakota and ownership control of ag land. There were many issues with this bill, including up to one year of delay of sale, a 20-year lookback, the structure of approvals, and others. I voted against this bill and it failed. The ag organizations agreed to work on a foreign ownership bill to bring to the 2024 session. SB189 – prohibits purchasing agencies from contracting with foreign companies or entities, this bill passed solidly, in continued discussion about protecting South Dakota and limiting involvement with poor acting nations. SB201 – provide for treatment for the ingestion of controlled substances, failed 17-18. South Dakota has many inmates serving a variety of drug offenses; however, we also have some inmates who were only convicted of ingestion. South Dakota is the only state in the nation with this level of incarceration. This bill, if passed, would have required offenders to attend an addiction counseling on the first offense. SB205 – reduce the penalty for unlawful possession of cannabis products. I voted against this bill, and it failed, it would have allowed additional legalized cannabis products in SD. SB152 – provide for increase funding for water and environment fund, I voted against this bill, however it still passed 19-16. I am supportive of rural water projects, but this bill took resources from ethanol production to be used for water projects in the state. I was a proponent of biofuel funding to be used for highway project match funding, which is beginning to decline with the increase of electric vehicles.
SB18 – construction increases for the DEX state fair, cattle and equestrian building, I voted to support this project and it passed. HB1029 – revise certain provisions regarding the county zoning process, it passed 18-17. I voted against this bill due to zoning approvals can be made by majority present, rather than majority elected, a reduction of threshold for making various decisions. HB1109 – modify occupation tax for business improvement districts, this bill allowed motel complexes with support from their city, to double their BID tax rate up to $4 or 4% per night to invest in business improvement districts. I voted against this tax increase, as my view is this is a tax increase on our rural residents who visit our urban city centers for medical, business or recreational uses, as well as the inability to allow funding flexibility to counties to provide for safety, security and modernization of county corrections. HB1090 – ag nuisance claims, was amended on the floor, and I supported this bill to protect both our ag operators who want to advance their operations and the protect neighbors who live near expanding ag operations.
Legislation I am working on include: SB79 - Hiddenwood Lake Dam Project, SB172 - Construction Inflation for BHSU Nursing program expansion, and SB173 - NSU Nursing and Business Expansion, and SB155, a bill to create a Regional Jail Fund, all passed out of joint appropriations this past week and will be heard on the Senate floor this upcoming week.
As the Senate prime sponsor of HB1133, define a commodity for common carrier, the bill died in committee last week. I worked with Senators to smoke out and calendar the bill, but was unsuccessful to organize a large enough response to proceed. For clarity, I am fully supportive of ethanol and value added ag. This bill defined CO2 that is to be stored geologically, is not a commodity, resulting in a pipeline no longer being able to use eminent domain for development. It would have given landowners slightly more leverage in voluntary easement negotiations, and if agreement could not be reached, the pipeline could continue through public right of way for the project.
Joint Appropriations now turns their attention to budget setting for FY24 state operations.
As always, I can be reached at [email protected]. I look forward to continued conversations!
House Report by Scott Moore
As I write this note, February 25, the 98th Legislative Session is down to nine days left to get legislation completed and projects funded. In the coming days, we will see legislation get passed, projects get funded, and some that will have to wait.
I’m going to keep this update on one subject, Tax Cuts. The House of Representatives passed HB 1137 which would lower the State’s general sales tax rate from 4.5% to 4.2%. I know of a few items that have exemptions, but most everything that is purchased is at this rate: food, utilities, repairs, clothing, appliances and supplies.
An amendment to the law in 2016 imposed a half-penny sales tax and required that it be reduced back to 4% once the State collected $20 Million from remote sellers. We have clearly collected the amount required under the 2016 law.
We, the State, can afford this tax cut. From 2010 to 2022 the average sales tax growth rate was 4.3% after taking inflation and federal stimulus dollars out of the equation. South Dakota has seen true economic growth.
I am hoping that we can come to an agreement with the Senate and the Governor to get this tax cut in place and signed into law. A promise was made to the South Dakota residents when this increase happened in 2016. The State was in desperate need of increased revenues and the residents of South Dakota stood up and with every purchase helped increase the State revenues.
We are in a different economic time and able to start making good on a promise made. A long-term goal should be to getting back to the 4% and then reevaluate. As you can see, tough times do not last forever but neither do good times.
House Report by James Wangsness
Despite the snowstorm and extremely cold temperatures, the legislature pressed onward and continued to debate and vote to finish the session in a timely manner. While most bills passed the House with overwhelming support, some faced much opposition and were decided by a few votes.
One of the first controversial bills of the seventh week was House Bill (HB) 1217, which would modify absentee voting laws. Some of the main complaints about the bill was that the state auditors were not properly consulted when drafting the bill and that they are already overworked. Also, that one of the changes would reduce the time allowed to vote absentee from forty-six days to thirty, and this would make it much harder for some people to vote. Proponents argued that several auditors who ran on these changes did help in drafting the bill, and that most states have even shorter time periods in which to vote absentee. The House voted 35 to 35 and so the bill failed to pass. The next day, an attempt to reconsider the vote failed 30 to 39.
The Governor's bill, HB 1075, which would completely eliminate the food tax in South Dakota, ultimately failed in both committee and on the House floor. HB 1075 came before the House Committee on Appropriations and ultimately failed, being sent to the 41st day by an 8 to 1 vote. Gov. Noem argued against this decision and pushed for the legislature to smoke out HB 1075 and bring it to the House floor for debate. On February 21, the attempt to smoke out HB 1075 failed. The next day, the legislature instead supported HB 1137, which lowered tax rates across the board. This would be the largest tax cut in South Dakota history and was supported in the House with 66 yeas and 3 nays. It now awaits a committee hearing in Senate Taxation.
After its close vote in committee, the question of having elections for the State Brand Board (HB 1201) came before the House on February 22. Proponents argued that the Brand Board should be more accountable to the people they serve with opponents saying that elections would be inappropriate for the work the board does. The vote was tight, with 36 yea votes and 33 nays. It now awaits hearing in the Senate State Affairs Committee.
On the 24th, House State Affairs Committee debated Senate Concurrent Resolution (SCR) 602. SCR 602 would affirm the legislature's support of the landmark Supreme Court decision in Dobbs vs Jackson, overturning Roe vs Wade. Multiple pro-life advocates came forward to support the resolution as the Roe decision was a clear example of judicial lawmaking. No opponents came to testify, and SCR 602 passed with 11 yeas and 2 nays. It now awaits debate on the House floor.
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