Legislative Update with Jay Kruse

A few bills that were passed by the 2022 South Dakota Legislature and signed by Governor Noem that could have an impact on your credit union’s operations. 

Good Morning!

The House and Senate are both in recess this week in observance of the Easter and Passover holidays. The bad news is, over the past 24 hours a huge spring blizzard has blanketed most of North Dakota and part of South Dakota with over a foot of snow, causing extensive and widespread travel issues. If you’ve been impacted by the storm, stay safe and warm, and keep telling yourself golf is only a few weeks away! Summer will come!

During the 2022 legislative session, Governor Noem vetoed HB 1223, HB 1281, SB 76, and SB 151, signing the other 246 bills into law. Last week, I detailed those four bills vetoed by Governor Noem, which also failed to receive the requisite number of votes needed for an override during the legislature’s final day. You can read my recap here.

This week, I’m going to detail a few bills that were passed by the 2022 South Dakota Legislature and signed by the governor that could potentially have an effect on your credit union’s operations. Let’s dig in!

HB 1085: An Act to expand the eligibility for a small estate probate. This bill expands the eligibility for collection by affidavit for small estate probate to include the value of an entire estate, wherever located, less liens and encumbrances, that does not exceed $100,000. This is a change from the prior $50,000 limit. This law goes into effect July 1st, 2022.

HB 1115: An Act to allow succession to real property by an affidavit. Creates a NEW SECTION of code:
"Sixty days after the death of a decedent, any person claiming to be a successor to the decedent's interest in real property in this state may file, or cause to be filed on their behalf, an affidavit describing the real property owned by the decedent and the interest of the decedent in the property. A certified or authenticated copy of the decedent's death certificate and the affidavit must be filed with the register of deeds office in all counties where the real property of the decedent is located."

"Nothing in this section affects the rights of a secured creditor or judgment creditor in such property, or prevents any proceeding enforcing any mortgage, pledge, or other liens upon the real property described in the affidavit."
This law also goes into effect July 1st, 2022.

HB 1271: An Act to provide for remote work for employees of money lending licensees and mortgage lender businesses. Creates a NEW SECTION of code allowing the employees of mortgage lender businesses pursuant to § 54-14-14, to work remotely if certain conditions are met.

1. Ensures in-person interactions with consumers are not conducted at the remote location and the remote location is not represented to consumers as a business location; 
2. Maintains secure virtual private networks and other appropriate safeguards for licensee and consumer data, information, and records; 
3. Employs appropriate risk-based monitoring and oversight processes of work performed from a remote location and maintains records of the processes; 
4. Ensures consumer information and records are not maintained at the remote location; 
5. Ensures consumer and licensee information and records remain accessible and available for regulatory oversight and examination; and 
6. Provides appropriate employee training to keep all conversations about and with consumers conducted from the remote location confidential, as if conducted from the business location, and to ensure remote employees work in an environment that maintains confidentiality.

Please note, this affects mortgage loan originators (MLOs) licensed under state law. This doesn’t apply to MLOs registered under the SAFE Act requirements and employed by a credit union.  
 
As always, don’t hesitate to contact me with any of your advocacy questions or concerns.