July 1 Notable Law Changes for Cities

The month of July is right around the  corner, which means a new state fi scal  year begins. July 1 also marks the  effective date of new legislation passed  during the 2023 Legislative Session in  Pierre and we want to take a moment  to highlight law changes that affect  municipal processes, procedures, and  operations considerations for municipal  leaders and public servants.

Increased Purchase Limit For Supplies

House Bill 1060 increases the spending  threshold for procurement of supplies  from $25,000 to $50,000 before having  to advertising for bids. In addition to the  increase of the threshold for supplies, we also added utility infrastructure  to the public improvement language  of the bid law, so when a utility is  procuring infrastructure, such as  electrical transformers, the limit before  the bid process takes place has been  raised to $100,000.  With supply chain  shortages and delays in purchasing  infrastructure experienced due to the  COVID pandemic, it is very important  for municipal utility departments to be  able to procure those needs in a timely  manner for future development.

New Municipal Liquor License Category

House Bill 1176 establishes a new  category of on-sale licenses for municipal owned facilities including  event centers, arenas, theatres,  stadiums, golf courses, etc. On-sale  licenses issued under this new law will  not have a fee and do not count against  the number of on-sale licenses available  within the municipality.

Taxi Cab Reporting Changes

Senate Bill 88 clarifies reporting  requirements for taxi cab services  to report rates and operations plans  within municipalities to the city. This bill  removes the municipality’s responsibility  to approve rates for taxi cab services.

Limits On Public Comments During Public Meetings

Senate Bill 162 provides clarity to current law and the practice of placing time limits on public comments during public meetings. SB 162 allows governmental bodies to place a time limit on the public comment period afforded during a public meeting.

Emergency Medical Service Personnel Now Classified Class B Under Sdrs

House Bill 1007 revises provisions concerning the profession of emergency medical service personnel and reclassified paramedics as Class B personnel within the South Dakota Retirement System affording an accelerated retirement timeline.

HOUSING INFRASTRUCTURE INVESTMENT FUND… Again

Senate Bill 41 clarifies confusion in law that authorized expenditure of the 2022 Housing Infrastructure bill that created a $200 million program to provide grant and loan funding in support of housing infrastructure throughout South Dakota. Particulars about the new program and law include: 30% of the funding is eligible for spending in Rapid City and Sioux Falls, and 70% of the funds must be spent outside of communities over 50,000 population. The South Dakota Housing Development Authority (SDHDA) has been charged with administering the Housing Infrastructure Fund. $100 million is put in a new revolving loan fund creating a perpetual source of housing infrastructure funding, $100 million is to be used as grant funding of which $50 million is state ARPA funds. The SDHDA is working through the HIIF administrative rule making process and program allocation plan finalization process. Public hearings and meetings were held in May with more scheduled for June.

Additional Diseases Able To Be Claimed For Medical Cannabis Use

Senate Bill 1 adds AIDS, HIV, ALS, MS, cancer, Crohn’s disease, epilepsy, seizures, and Post Traumatic Stress Disorder as debilitating medical conditions eligible for medical marijuana prescriptive use.

Ban The Ban Bills On Natural Gas And Propane Utilities And Appliances

House Bill 1239 and Senate Bill 174 ban state and local governments from placing outright bans on natural gas, fuel oil, and propane utilities as well as prohibit outright bans on propane and natural gas appliances like stoves. These bills were brought in response to national headlines highlighting cities in Oregon, California, and New York placing bans on fuel gas utilities and fuel gas appliances. Nothing in SB 174 or HB 1239 prevents municipalities from enacting planning and zoning ordinances, building code ordinances, or fire codes with consideration of fuel gas utilities or appliances so long as blanket prohibitions are not created. ■