Cash and Marijuana– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (March 6, 2022).
Because the Most important Run of the 2022 Session winds to a detailed, there are nonetheless ongoing discussions about cash and marijuana. Legislators have made a number of modifications to the medical marijuana legal guidelines adopted by the voters, working to make clear a number of the provisions of IM26. These clarifications got here out of an interim summer time examine, and embrace things like including an expiration date for written certification for medical use, revising the reporting necessities on medical hashish, and clarifying that landlords have the proper to impose affordable restrictions on the usage of hashish. These payments had assist from the supporters of IM26 and broad assist amongst legislators.
One other subset of marijuana-related laws seeks to both additional constrain how medical marijuana is dealt with in our state, or, conversely to legalize marijuana use for all adults. In District 24, almost two-thirds of voters had been in favor of medical marijuana; nevertheless, in our district Modification A failed with 52% voting towards it. I’ve not supported payments to legalize leisure use.
The opposite over-arching subject for the ultimate week of Session will probably be finalizing one-time spending proposals and crafting the Normal Fund price range for the fiscal yr beginning July 1. Each homes have agreed to many one-time expenditures, together with renovating the Cultural Heritage Middle, increasing the State Well being Lab, growing a Grasp Plan for the Capitol Lake space, and increasing the Kinsman Constructing situated close to the Becker-Hansen constructing. Larger schooling proposals which have obtained assist are the Cottonwood Subject Station for livestock grazing analysis, growing a Cybersecurity Cyber-Ag Partnership between SDSU and Dakota State College, and upgrading varied buildings on the Board of Regents campuses.
Discussions in regards to the basic spending invoice are specializing in methods to deal with federal fund expenditure authority. Up to now, federal funds have accounted for a few third of state spending. Within the Governor’s really useful price range for FY2023, federal funds account for slightly greater than 65% of the entire price range. Home and Senate Appropriations committee members have been holding additional conferences as they work to develop the ultimate price range proposal.
Legislators are scheduled to complete the Most important Run on Thursday, March 10. The ultimate three days of this week are reserved for convention committee stories and contain a number of “hurry up and wait” time. Legislators are scheduled to return to Pierre on Monday, March 28 for Veto Day.
Gross sales Tax Charges– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Feb. 27, 2022)
South Dakota first carried out a gross sales tax in 1935, at two %. 4 years later, the state instituted a two % use tax. The gross sales and use tax elevated to 3 % in 1965, and to 4 % in 1969. The gross sales tax charge remained at 4 % till 2016, besides for 2 momentary will increase to 5 % – one in 1980 to purchase railroad property, and one in 1987 to determine the REDI fund. As one in all eight states with out an earnings tax, we depend on gross sales and use taxes as the first income for ongoing state authorities bills.
In 2016, legislators voted to lift the gross sales and use tax by half a penny to assist enhance instructor salaries and supply property tax reduction. A part of that legislation included a provision that may set off a decrease tax charge if the extra tax collected from distant sellers (web gross sales from out-of-state firms) reached $20 million greater than the earlier yr.
That $20 million set off has by no means been reached. Nevertheless, HB 1327 was launched this yr to cut back the overall gross sales tax charge from 4.5 % to 4.25 % beginning July 1, after which 4 % subsequent July. The invoice handed the Home on a 39-31 vote however was subsequently deferred to the 41st Legislative Day by the Senate State Affairs committee. All three District 24 legislators voted towards the invoice.
All of us agree that the State has unanticipated revenues this yr, thanks partially to the infusion of one-time federal {dollars}. Whereas basic fund revenues are sturdy this yr, there are storm clouds gathering on the proverbial horizon. Looking forward to FY2023, anticipated revenues for the State are up three-tenths of 1 %. Reducing the gross sales tax charge by half a % would equate to an estimated $150 million ongoing minimize to the overall fund. The proponents of HB 1327 defined how we may afford the $75M ongoing this yr however had no plan for the $75M subsequent yr.
I imagine it’s imprudent to equate our present gross sales tax progress – spurred by one-time federal cash – as an ongoing certainty. We’re working this yr to extend salaries for state workers, academics, and neighborhood assist suppliers. I imagine we have to take a fiscally conservative method to creating positive we are able to meet that aim and never have to come back again in a yr or two and minimize these salaries. Fairly, when we now have one-time cash accessible, we have to guarantee that it’s used for one-time functions. Over the ultimate two weeks of Session, we’ll focus on methods to develop a fiscally accountable price range. Amongst options for one-time makes use of are a one-year property tax break, placing extra cash into different favored initiatives, or saving up for anticipated bills referring to our jail system.
Setting the Income Goal– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Feb. 20, 2022)
Legislative guidelines require the Joint Committee on Appropriations to pick basic fund income targets for the present and subsequent fiscal years by February fifteenth for the aim of setting appropriations.
Legislative Analysis Council (LRC) fiscal employees and employees from the Bureau of Finance and Administration make separate displays to the appropriations committee on their projections for ongoing and one-time revenues for the state. A income subcommittee considers these two projections after which makes a suggestion to the total appropriations committee.
Greater than half of the state’s basic fund comes from the gross sales and use tax. The contractor’s excise tax, lottery receipts, insurance coverage firm tax, and tobacco taxes collectively contribute about twenty % of all basic fund receipts.
Whereas South Dakota has seen document will increase normally fund income over the previous two years, we don’t suppose that progress is sustainable. The typical progress charge of gross sales and use tax collected in South Dakota was about 4.7% from 2011-2020. The final fund projection for FY22,which ends June 30, 2022, is to complete at 6.5% above the quantity collected in FY21. Nevertheless, the projection for FY23 is much extra modest, with the income subcommittee recommending a progress of lower than one %
These numbers type the premise for ongoing spending, which is contained within the basic appropriations invoice. Our Structure gives that the overall appropriation invoice incorporates the appropriations for unusual bills of the manager, legislative and judicial departments of the state, the present bills of state establishments, curiosity on the general public debt, and for frequent colleges. The structure additionally requires a balanced price range.
The final appropriation invoice must move by a easy majority vote in every chamber.
The Appropriations Committee can also be sifting by way of requests for one-time spending concepts together with infrastructure initiatives, investments in greater schooling establishments, and different concepts for one-time expenditures. Whereas most payments should move the home of origin by the 27th Legislative Day, the deadline for particular appropriations payments to move the home of origin is the 30th Legislative Day. Particular appropriations payments have to move with a two-thirds majority in every chamber.
Price range data particulars can be found on the LRC web site at sdleigslature.gov, below the “Price range” tab.
A Primer on Property Taxes– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Feb. 14, 2022)
South Dakotans paid almost $1.5 billion in property taxes final yr. At a time when property values are rising, we hear considerations about excessive property tax payments. It is very important differentiate between assessed worth, taxable worth, and the quantity of taxes due.
By March 1, the county mails an evaluation discover to house owners of actual property, indicating the total and true worth of the property on the authorized evaluation date of November 1 of the earlier yr. Every county is given an equalization issue to guarantee that all property within the State is equalized at eighty-five % of worth for property tax functions. This issue determines the taxable worth indicated on the annual tax invoice.
The State of South Dakota doesn’t gather or spend property tax {dollars}. Fairly, property taxes are used on the native degree. Over half of all property taxes are used to assist native colleges; the remainder pays for cities, counties, and particular function districts reminiscent of these for water growth, rural hearth safety, and ambulance service. Whereas the legislature units the levy for Okay-12 public colleges, the levy for different models of native authorities is predicated on the budgeted want. County budgets are allowed to extend from one yr to the following by the lesser of three % or the speed of inflation, plus new building. The full price range is split by the taxable worth to find out the mill levy. One “mill” is one greenback of taxes per thousand {dollars} of assessed worth. The mill levy multiplied by the taxable worth determines the entire tax invoice. If taxable values enhance and the price range stays the identical, the tax levies lower. If taxable values keep the identical and budgets enhance, then levies enhance.
Proprietor-occupied properties, agricultural land, and business property are all handled equally when setting the levy for native governments. For the college basic fund levy, nevertheless, these three courses of property are handled otherwise, with agricultural land taxed at about forty-five % of what owner-occupied properties are taxed, and owner-occupied properties taxed at barely lower than half of economic property.
Taxes are due and payable by January 1 of the yr following evaluation. Tax funds don’t turn into delinquent if half of the invoice is paid earlier than Could 1 and the remaining half is paid earlier than November 1.
Anybody with questions in regards to the property tax course of ought to contact the South Dakota Division of Income at https://dor.sd.gov/.
Half Manner There– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Feb. 6, 2022)
Subsequent week we’ll move the midway level for the 2022 Session. With the invoice introduction deadline final Thursday, legislators have launched a complete of 551 payments within the 2022 Session. This is a rise of 73 over final yr, and the best since 1998 when 572 payments had been launched. For additional comparability, the bottom variety of payments ever launched was in 2017 when 394 payments had been launched, and the best quantity was in 1957 when 929 payments had been launched.
Usually, about half the payments launched will finally turn into legislation. The best proportion of payments ever enacted in a single session occurred in 1947 when 73 % of that yr’s payments had been enacted. The bottom proportion of payments ever enacted in a single session occurred in 1897 when solely 18.6 % of the payments had been enacted.
Each invoice should move at the very least 5 hurdles earlier than it turns into legislation: committee listening to within the chamber of origin, ground vote, committee listening to within the reverse chamber, second ground vote, and governor’s signature. A lot of the payments that don’t move by no means make it past their first committee listening to. Legislative guidelines enable the prime sponsor of a invoice to withdraw a invoice previous to the primary committee listening to. Final yr 18 payments had been withdrawn; to date this yr 9 payments have been withdrawn.
Wanting forward at our work schedule, there are a number of key dates which is able to govern our work. Subsequent Tuesday, February 15, the Joint Committee on Appropriations should choose the overall fund income targets for the present and subsequent fiscal years. These targets will type the premise for constructing the state’s price range.
The next Wednesday, February 23, known as “crossover” day. It’s the final day for payments to move the home of origin and cross over to the opposite chamber. Monday, March 7, is the ultimate day for a invoice to move each homes. The subsequent three days are reserved for convention committees to fulfill and resolve any variations between the Home and Senate variations of a invoice. The Legislature will meet on Monday, March 28 to think about any payments vetoed by the Governor.
You will discover the standing of any invoice by going to the Legislative Analysis Council web site at sdlegislature.gov.
Defending Grain Producers– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Jan. 30, 2022)
In 1882, the Territorial Legislature created an advert hoc committee to take care of rail points, based mostly on complaints from residents of Dakota Territory. Three years later, the Legislature established the Board of Railroad Commissioners. A couple of months after South Dakota gained statehood, the Legislature of 1890 assigned regulation of grain warehouses to the Board of Railroad Commissioners since most grain amenities had been adjoining to railroads. Further tasks had been added to the Board of Railroad Commissioners over time, and in 1939 the Legislature modified its identify to the Public Utilities Fee (PUC).
At present the PUC nonetheless regulates public grain warehouses and grain consumers (amongst different tasks), to guarantee that these companies are financially in a position to meet their obligations to grain farmers. In an effort to be vigilant in defending the integrity of grain commerce for producers, leaders within the business met with the PUC this previous summer time to investigate present legal guidelines relating to grain consumers – those that purchase grain to resell, and public grain warehouses – companies who retailer grain on behalf of producers. There was additionally dialogue in regards to the position of grain brokers who negotiate transactions between producers and grain consumers however don’t take title to the grain. There was no need to develop the scale of presidency or add new rules; nevertheless, there was a need to make sure our legal guidelines present ample protections for transactions that may run into hundreds-of-thousands of {dollars}
The Senate has given unanimous approval to 3 payments launched on the request of the PUC. SB35 would enhance the utmost penalties for getting grain or working a public grain warehouse with no license. Present penalties are capped at $20,000, which for some will not be an ample deterrent. This invoice proposes to extend the utmost advantageous to $50,000, though the PUC would have the power to set a decrease advantageous. For comparability, the State of Nebraska is contemplating a advantageous of $870,000 for comparable violations. SB38 makes it a Class 5 felony for a grain dealer to barter a transaction with an unlicensed purchaser. SB39 helps farmers receives a commission quicker when a declare is made on a grain purchaser bond. At present the legislation permits six months for claims to be filed, which suggests the PUC can’t distribute bond proceeds till that point has handed. This invoice would enable grain producers to receives a commission after ninety days.
A fourth invoice, HB 1037, was introduced in by the Legal professional Normal’s Workplace to revise the penalty for willful violations by grain consumers and grain warehouse operators. If handed, the quantity of penalty can be tied to the worth of the theft.
I recognize the work of the PUC and the Legal professional Normal’s Workplace to take heed to the considerations of business and develop these proposals to reinforce grain regulation and enforcement.
Lobbyists– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Jan. 17, 2022).
That phrase evokes quite a lot of reactions amongst those that take part in our political course of. For some, the phrase is a pejorative. I don’t agree with that evaluation.
This previous week, our state and neighborhood had been shocked by the loss of life of a well-respected lobbyist – Greg Dean. Not solely was Greg a pal to many, he was additionally the epitome of a terrific lobbyist. He was an instance of the necessary work that lobbyists present within the legislative enviornment.
As legislators work to symbolize their districts and develop good coverage for our state, we shortly notice that we merely should not have the time to turn into consultants on all the problems that come earlier than us. We could also be educated about a number of the matters that confront us, however there may be merely not the posh of time to be good in any respect the problems.
That’s the place lobbyists play an necessary half. As a result of they deal with particular matters, lobbyists have the time to know the nuances of various coverage approaches and are invaluable in serving to navigate the questions of methods to craft good laws. They’re a precious useful resource for legislators with restricted time. They assist fill the hole for these of us who don’t have any analysis employees.
As contentious points come up, I look to lobbyists on either side of a problem to assist me higher perceive the professionals and cons of what I’m voting on. Lobbyists assist determine the nice and unhealthy of assorted items of laws and are necessary in growing a extra knowledgeable vote. Legislators quickly study that not all lobbyists are created equal. We all know which of them we are able to belief implicitly, and which of them we “belief however confirm.”
Greg Dean was a type of we may belief to inform us the nice, the unhealthy, and all that’s in between. Our hearts exit to Greg’s spouse, Jill, and their three boys. We grieve along with his household and with all who had the privilege of counting Greg as a pal. We grieve for the state of South Dakota who misplaced a superb man who cherished his state, who gave generously to his neighborhood, and who confirmed kindness to all.
Bettering the Capitol Workspace– 2022 South Dakota Legislative Session replace by District 24 Senator Mary Duvall (Jan. 17, 2022).
Two years in the past, the Legislature requested the Bureau of Administration to develop a long-range plan for state-owned buildings within the Pierre/ Ft. Pierre space. This included the Capitol, buildings on the Capitol complicated, and leased areas. The Bureau was to evaluate the quantity of workspace in state-owned buildings and leased buildings, analyze future wants, and discover methods to enhance effectivity.
I imagine the plan is well timed, significantly in mild of two pretty latest components.
One is the nationwide pattern towards distant work. What began as a COVID-19 precaution with many workers doing their jobs from dwelling, is anticipated to proceed. Greater than half of firms all over the world (56%) are hybrid or absolutely distant firms. In response to Future Workforce Report, the variety of distant employees is anticipated to almost double the pre-pandemic degree within the subsequent 5 years.
One other is the chance to develop the State Well being Lab, which is able to enable the entire Division of Well being employees to be in a single location. At present, the Division has employees within the Hays Constructing subsequent to the Capitol, in addition to within the State Well being Lab close to the north finish of Hilger’s Gulch.
The plan is designed to reinforce effectivity and enhance public service by maximizing the Pierre Campus constructing area and consolidating leased area the place applicable. The Bureau of Administration Nicollet Constructing will probably be vacated and demolished, and the Paul Kinsman Constructing will probably be expanded to accommodate all of Buildings and Grounds in a single environment friendly operation.
The proposal contains consolidating the entire Secretary of State’s employees and the Unified Judicial System employees within the Capitol, having the entire Division of Social Companies within the Kneip Constructing, and placing the Bureau of Human Sources and Bureau of Administration (except Buildings and Grounds) within the Dolly-Reed Plaza. The Governor’s Workplace of Financial Improvement and the Division of Tourism will transfer to the Hays Constructing and Capitol Lake Customer Middle.
Because the State of South Dakota works to make the perfect use of tax {dollars}, serve the general public, and be an employer of alternative, having enticing and environment friendly workspaces is necessary.
Infrastructure funding– 2022 South Dakota Legislative Session preview by District 24 Senator Mary Duvall (Jan. 5, 2022).
Amongst key matters of the 2022 Legislative Session, which will get underway subsequent week, would be the alternative to find out methods to allocate tens of millions of {dollars} of one-time funds. Like final yr, South Dakota has a big infusion of federal {dollars} and powerful gross sales tax income, creating a chance to spend money on new infrastructure, pay for upkeep and restore of present infrastructure, and put together our state for future financial downturns.
Among the many makes use of of one-time cash will probably be massive investments in water and sewer infrastructure. Fortuitously, we have already got a system in place by way of the State’s Board of Water and Pure Sources (BWNR) to assist direct water, wastewater, and sewer growth initiatives. The BWNR is a seven-member board of residents, appointed by the Governor, to advertise water growth initiatives, advise the Governor and legislature relating to the state coverage and priorities for water useful resource growth, and develop and implement the state water plan.
The BWNR oversees two revolving mortgage funds which offer low-interest loans and grants to make sure that South Dakotans have entry to scrub water. The Consuming Water State Revolving Fund helps nonprofit companies and governmental entities assemble consuming water amenities. The Clear Water State Revolving Fund helps governmental entities assemble wastewater amenities, storm sewers, and nonpoint supply air pollution management initiatives.
This yr, along with the Omnibus Water Funding Invoice which the Legislature votes on yearly to supply spending authority for initiatives on the state water plan, the Legislature can have the chance to vote to approve $600 million proposed by Governor Noem from the American Restoration and Reinvestment Act funds for water and sewer infrastructure funding.
The Legislature can even contemplate proposals to extend availability of workforce housing, based mostly on work completed this summer time by an interim examine committee on the subject. Suggestions from the committee embrace growing infrastructure, selling technical schooling, and maximizing present applications reminiscent of tax increment financing districts and the discretionary evaluation components.
As we take into consideration one-time initiatives and will increase in ongoing bills, I imagine we have to control the state and nationwide financial outlook. Whereas our economic system is robust, in keeping with the Council of Financial Advisors there are areas of concern as we glance forward.
All through the 2022 Legislative Session, I encourage District 24 residents to achieve out to your legislators: Senator Mary Duvall, and Representatives Will Mortenson Mike Weisgram. We will be contacted by way of the Legislative Analysis Council web site at sdlegislature.gov and would recognize listening to from you.
