New Laws Effective July 1, 2018

Several laws were adopted during the 2018 legislative session which will be of interest to municipalities. They include:

HB 1070, revise and repeal certain provisions regarding alcoholic beverages

Alongwithalotofcleanuplanguage,substantivechanges include a provision that all types of establishments will be allowed to be open any day of the year – including Christmas, Memorial Day and Sundays unless local ordinanceprohibitsit. ThisistheoppositeofhowSunday salesworknow–soyoumayneedtocheckwithyourcity attorney to see if your ordinances need to be revised. Malt beverage licenses were combined into one on- and -off sale/farm wine license; and clarification was made on the pricingofrestaurantlicenses10yearsafteradoptionofthe ordinance enabling them.

HB 1074, revise certain procedures regarding the creation of business improvement districts

Allows a municipality to create a business improvement district even if the municipality does not have a zoning ordinance in place.

HB1100,requireanamebeprintedonpubliccontracts Requires the name of any person signing a contract on behalf of a purchasing agency be printed on the contract.

HB 1121, revise the fees forcertain on-sale and off-sale retail licenses

Allmunicipalitieswillusethesamesystemtosetfees. For off-sale, the price will be not less than $300. For on-sale, the price will be not less than $1 per capita. Renewal fees are set at a maximum of $500 for off-sale and $1,500 for on-sale.

HB1154,revisecertainprovisionsregardingmunicipal lease-purchase agreements

Allows a municipality to enter into a lease-purchase agreement for up to twenty years for an improvement to real property. Equipment lease-purchases agreements remain at a maximum of 10 years.

HB 1161, revise certain references to the International Building Code

Update the reference to the most recent (2018) version of the International Building Codes.

HB1163,revisecertainprovisionsregardingmunicipal publication deadlines

Clarifiesthetimingsothecityhasfivebusinessdaystoget minutes to the newspaper; and the newspaper then has 12 business days to publish them.

HB 1169, revise certain provisions regarding the commissioner form of municipal government

For the commissioner form of government, defines what constitutes a vacancy and requires a majority of the members remaining eligible to serve in order to pass a measure, and, in order to prevent someone from merely not attending meetings and holding up the ability to act, a newsectionwasaddedthatparallelsasimilarprovisionin the aldermanic form, allowing the commission to establish, by resolution, an attendance policy and provisions for violation.

HB 1172, revise certain provisions regarding meetings of certain public bodies

Requires every entity subject to the open meeting laws to provide “a period for public comment, limited at the chair’s discretion, but not so limited as to provide for no public comment” at every official meeting.

HB1173,toprovideforinactivestatusofairportliquor licenses

Allows a municipal airport to have an on-sale liquor licensethatisoutsidethecapsandallowsthatlicensetobe inactive without the municipality losing the license after 2 years. No license issued after July 1, 2018 can be sold, transferred, or operated anywhere other than the airport.

HB 1178, provide a penalty for the failure to complete timely audits by certain entities

Requires Legislative Audit publish in every entity ’s legal newspaper,andontheDLA’swebsite,noticeofthefailure to submit a timely audit report (for municipalities, under the requirements of § 4-11-4). An audit is timely if submitted to Legislative Audit not later than 18 months following the end of the entity ’s fiscal year, or if a twoyear audit, not later than 18 months following the end of the entity ’s second fiscal year covered by the audit. Establishes a penalty of $10 per day of delinquency, to be imposed by the attorney general, who may also waive the penalty for good cause shown.

House Bill 1178 as adopted by the SD Legislature and signed by the Governor provides that for a fiscal year

ending on or after June 30, 2018 a government entity has 18 months following the end of its fiscal year to file a required audit with the South Dakota Department of LegislativeAudit.FormunicipalitiesthatmeansJune30th 1 ½ years after its fiscal year if audited annually and June 30th1½yearsafterthesecondfiscalyearifauditedevery two years.

The change in State law change does not change the filing date requirements for the Audit and other information on EMMA, if your municipality has a Continuing Disclosure Agreement regarding an existing bond issue.

HB 1183, revise the deadline for the certification of certainmunicipalballotlanguagetothecountyauditor

Moves the deadline for submission of ballot language to the county auditor one week earlier when placing an issue on the general election ballot.

HB 1273, revise certain provisions regarding convention facility on-sale licenses to sell alcoholic beverages

Currently, a municipality over 5,000 can only issue a conventionfacilityon-saleliquorlicenseifthefacilityhas seating for 400 people and sleeping rooms for 100 people. Anycityunder5,000needstohaveseatingfor150people and 40 sleeping rooms. This new law will allow cities under 20,000 population to issue licenses to those smaller facilities.

SB 58, to revise certain provisions regarding tax increment financing districts

Added infrastructure for housing development that meets certain criteria (1st time homebuyer) to the acceptable use of aTIF that can be “spread” statewide.

SB 70, define the term, serve, for the purposes of regulating the sale and use of alcoholic beverages

Adds a definition of “Serve” as the taking of an order for an alcoholic beverage and intentionally delivering the alcoholic beverage to a customer for the purpose of consumption on the licensed premises and the customer takes physical possession of the alcoholic beverage.

SB 86, revise certain requirements when a local unit of governmentsellssurpluspropertythrougharealestate broker

Removes the requirement that you get 90% of the appraised value of real property when selling surplus property at auction or through a real estate broker. Requires appraised value of real property be published with the notice of sale.

SB 98, revise certain provisions regarding the 911 emergency surcharge, the public safety 911 emergency fund, and revenue distribution and to repeal the 911 emergency surcharge sunset clause

Permanently repeals the sunset of the 911 surcharge, leaving it in place at $1.25.

SB 100, establish certain provisions related to grant monitoring and review and to revise certain record retention policies

Among other provisions requires any county, city, or school district who receives an independent audit to make the audit report available on the entity ’s website.

SB 126, revise certain provisions regarding municipal annual reports

Clarifies that all municipalities must file their annual report with LegislativeAudit and extends the deadline for annual reports to May 31.

SB 147, authorize local governing bodies to establish the per diem rate for housing and development commissions

Removes a $35 cap on the amount a municipality can provide as per diem for members of a housing and redevelopment commission, so that per diem could be determined locally.

Among the notable revisions that are effective July 1, 2018 and that will impact these renewals are the following:

• The BW (on-off sale malt beverage and on-off sale South Dakota farm wine) license has been repealed • The PB (off sale malt beverage) license has been repealed • ThePF(offsalemaltbeverageandoffsaleSouth

Dakota farm wine) license has been repealed • The RB (on-off sale malt beverage) license has been broadened to include on-off sale South

Dakota farm wine

Beginning on July 1, 2018 the only malt beverage license that will be available is the new RB (on-off sale malt beverage and on-off sale South Dakota farm wines) license. The license fee remains at $300.00, half of which will be remitted to the state with the application.

ThecurrentBW(on-offsalemaltbeverageandon-offsale SouthDakotafarmwine),PB(offsalemaltbeverage),and PF (package off sale malt beverage and off sale SD farm wine) licenses will expire on June 30, 2018.

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