Legislative Update with Chesney

SD Legislative Session week four begins with nearly 400 bills filed, a new governor, and a contested UCC amendment.

by Chesney Garnos, Executive Director of Government Affairs
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Advocacy in Full Swing - Advocating for Our Members
Last week, Jeff Olson and I had the opportunity to travel to Washington, D.C., for a meeting with U.S. Senate Majority Whip John Thune, joined by Jim Nussle from America’s Credit Unions. We discussed critical credit union issues, emphasizing the importance of preserving our credit union tax status. It was a productive day advocating on behalf of our members in the Dakotas!

South Dakota Legislative Session
Week four has begun in Pierre, wrapping up an eventful week three. January 30th was the final day for unlimited bill introduction, and February 5th is the final day for the introduction of individual bills. So far, almost 400 bills have been filed.

Governor Larry Rhoden officially took the reins in South Dakota during week three. He also announced his Lieutenant Governor, Tony Venhuizen. We can anticipate a responsive and active Governor’s office over the next two years.

For the second consecutive legislative session, Representative Auch is seeking to amend Article 8 of the Uniform Commercial Code (UCC), which deals with investment securities. This year’s bill, HB 1122--An Act to Amend Provisions of the Uniform Commercial Code (UCC)—was introduced by Representative Auch (D-18, R) and will be heard in the House Commerce and Energy Committee this Wednesday. In 2024, this legislation was defeated in the House State Affairs Committee by a vote of 11-1. However, the bill sponsor invoked Joint Rule 7-7, known as a “smoke out,” on the House floor. Members of the House supported the motion, sending the bill back to House State Affairs for reconsideration. The committee, in turn, sent it back to the House floor with a “do not support” recommendation by a 12-1 margin, where it ultimately failed.

With many new members in the House and on this committee, we anticipate a close vote. At this time, our advocacy team and SD GAC have taken a position to oppose this legislation. It is uncommon to revise a UCC provision already adopted in statute with the national commission’s support and recommendation.

To view more legislation we are tracking this session, please visit www.dakcu.org/bill-tracking and filter by South Dakota!

If you have any questions, please don’t hesitate to contact me!

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