2019 Venture Capitol - May 28 Issue

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South Dakota Chamber Of Commerce - Venture Capitol
May 28, 2019

Update on Potential Ballot Measures for the 2020 General Election

 

This is the year that ballot measures and referendums gather signatures to be placed on the general election ballot in 2020.  There are twelve ballot measures that have filed papers with the Secretary of State’s office which includes two drafts of the same proposal, making a total of 11 different potential ballot measures.  Three of them have already started gathering signatures, the other eight are in the process of being reviewed.

Here are the requirements to place a ballot measure on the general election ballot in 2020:

  • Initiatives - require collecting and submitting 16,691 signatures to the Secretary of State’s Office.  This is equal to 5% of the votes cast for Governor in the most recent election. There will be 25% to 40% or even more of the signatures that will not meet all of the requirements and will be disqualified.  The means groups need to turn in a total of at least 20,863 to 23,397 signatures to have enough valid signatures to get on the ballot.  The deadline for these signatures is November 4th at 5 PM. 
  • Constitutional Amendments – can be proposed using the signature gathering process but they are required to have twice the number of valid signatures as initiatives.  This is equal to 10% of the votes cast for Governor in the most recent election.   Constitutional Amendments need 33,921 valid signatures which will mean collecting 42,401 to 47,489 signatures.  The deadline for these signatures is November 4th at 5 PM.   
  • Referendums - are attempts to repeal bills passed by the most recent legislative session and require the same number of signatures that are needed for initiatives - 16,691.  This is also equal to 5% of the votes cast for Governor in the most recent election.  And, there will be 25% to 40% or even more of the signatures that will not meet all of the requirements and will be disqualified.  The means that groups need to turn in a total of at least 20,863 to 23,397 signatures.  These signatures have a different deadline than initiatives and amendments.  Referendum signatures are due 90 days after the legislative session adjourns “sine die” which is June 27, 2019.  

To be approved for gathering signatures each ballot measure must be submitted to the Secretary of State’s office and then sent to the Legislative Research Council (LRC) for comments on drafting and language.  The LRC is the agency that drafts all of the bills during each legislative session and they review each proposed ballot measure to look for style and form, statutory construction, and general compliance with how laws are written.  The LRC returns the draft ballot measure to the sponsors with notes.  This document is available on the Secretary of State’s website.  The proponents of the ballot measure do not have to agree with or use any of the suggestions made by the LRC. 

Once a final draft is submitted to the Secretary of State, it is sent to the Attorney General’s office where the official explanation is written.  The official explanation must be on the signature forms and is printed on the ballot for each ballot question.  After the official explanation is returned to the Secretary of State’s office, sponsors can then seek approval to begin gathering signatures -  standing in front of court houses, post offices and any other public space with clip boards and ready to invite (harass) the public into signing their petition.

 

There are two ballot measures gathering signatures at this time, they are:

Title - An initiated measure changing initiative and referendum requirements. (Version 2)

Sponsor
: C.A. Heidelberger  (Chamber Note – Cory Heidelberger runs the political blog “Dakota Free Press” and was the first party to file a constitutional challenge to IM-24, he is also sponsoring the attempt to refer House Bill 1094 regarding regulations for people paid to gather signatures for petitions) 

PetitionApproved for circulation February 13, 2019

Attorney General's Statement:  

Title: An initiated measure changing initiative and referendum requirements.

Explanation:

This measure changes and repeals laws regarding ballot measures. It eliminates some information a petition circulator must provide to a petition signer, including circulator contact information and a statement whether the circulator is paid. It eliminates the requirement that sponsors submit circulator residency information.

It repeals the law barring individuals from sponsoring or circulating petitions for four years if they have committed multiple petition-law violations.

It repeals the law extending the Legislative Research Council's deadline for reviewing initiated measures received during legislative session. It changes fiscal note requirements for initiated measures and initiated constitutional amendments, and removes fiscal notes from the ballot for these types of measures.

It decreases the time in which the Attorney General must file a title and explanation for initiated measures and initiated amendments.

It repeals the law prohibiting an initiated measure from embracing more than one subject.

Currently, sponsors must file signed initiative petitions with the Secretary of State at least one year prior to the general election. The measure changes this deadline to four months prior.

Under this measure, most voter-approved ballot measures would take effect the day after the official vote canvass, rather than the following July 1, as the law currently states.

Fiscal Note:  

By reducing the time available to review signed initiative petitions by 89%, this initiated measure would require the Secretary of State to increase staffing resources temporarily. The estimated increase of state expenditures is approximately $3 5,000 every two years.

 

Title - An initiated measure to legalize marijuana and paraphernalia for certain people, and to make other changes to State law regarding marijuana. 

Sponsor:
 John Dale

Petition Approved for circulation March 5, 2019

Attorney General's Statement: 
Title: An initiated measure to legalize marijuana and paraphernalia for certain people, and to make other changes to State law regarding marijuana.

Explanation:

This measure may allow anyone over age 21 to possess, grow, sell, and distribute marijuana or marijuana paraphernalia.

It prohibits State enforcement of any law, including federal law, regarding marijuana or paraphernalia, except as provided in the measure.  It forbids prosecutions for driving under the influence of ingested marijuana. It prohibits law enforcement and agents of the State from keeping records regarding use or possession of marijuana or paraphernalia.

Individuals under 21 working in the agricultural industry may handle marijuana.  Individuals  under 2l may possess and ingest marijuana with a doctor’s recommendation. No one may distribute marijuana to a person under 21 unless that person has a doctor’s recommendation.  Violations may result in community service or a fine.

"Localities" cannot tax marijuana or paraphernalia use, nor regulate the consumption of marijuana, the location of marijuana-related businesses, or the cultivation, production, distribution, or sale of marijuana or paraphernalia.

The state cannot infringe a person's right to keep and bear arms for possessing - marijuana or paraphernalia. A parent's marijuana or paraphernalia or possession cannot be used against the parent in a child custody case.

Judicial or legislative clarification of this measure will likely be necessary. Marijuana remains illegal under federal law.

Fiscal Note:  

Decriminalizing marijuana would save $3,150,000 in prison costs and $1,500,000 in jail costs, based primarily on 2018 data.  It would also, however, cost $1,500,000 for the state to regulate, and would increase state Medicaid costs by $50,000, due to increased vehicle crashes.

The net impact is $3,100,000 in saving

 

There is one referendum/petition that is gathering signatures – to vote on repealing HB 1094.


House Bill 1094 - revise certain programs regarding transparency of the petition circulation process.

Sponsor
: C.A. Heidelberger (Chamber Note – Cory Heidelberger runs the political blog Dakota Free Press and was the first party to file a constitutional challenge to IM-24.  He is also sponsoring the ballot measure repealing recent laws regulating the initiative process.) 

Petition:  Approved for circulation March 29, 2019

Summary:  HB 1094 established requirements for people circulating petitions including wearing name tags for anyone who is paid to gather signatures.  This petition would suspend that law and place it on the general election ballot for 2020.

Attorney General's Statement:  Not applicable

Fiscal Note:  Not applicable


EDITORS NOTE:  For more information on this issue, visit
http://dakotafreepress.com/2019/05/29/cory-helps-chamber-understand-full-grave-extent-of-hb-1094-circulator-badge-requirements/#comments

 

There are nine ballot questions that are in the process of being approved to gather signatures.  All of them have been sent to the LRC and have received comments and suggestions.  Four of them have their Attorney General explanation, including one that is a draft of the same measure already being circulated.  This leaves five that are still at the Attorney General’s Office. 

Five of them are also waiting for fiscal notes.

Here are the ballot questions that have been submitted to the Secretary of State’s Office and have not yet been finalized.  These measures are NOT gathering signatures as this report (May 22, 2019).

 

Title - An initiated measure on tax rates.

Sponsor:  Don Haggar, Americans for Prosperity (AFP)

Attorney General's Statement:  Not available at this time

Fiscal Note:  Not available at this time

Summary:  This ballot measure would reduce the half penny increase in the sales/use tax passed by the 2016 legislative session.  Several methods for how this reduction would be accomplished have been contemplated by AFP which is deciding whether or not to pursue putting this on the ballot.

 

Title - An initiated amendment to the South Dakota Constitution authorizing the Legislature to allow sports wagering in Deadwood.

Sponsor:  Roger Tellinghuisen (Deadwood Gaming Association)

Attorney General's Statement:

Title: An initiated amendment to the South Dakota Constitution authorizing the Legislature to allow sports wagering in Deadwood.

Explanation:

The constitution currently authorizes the Legislature to allow certain types of gaming in the City of Deadwood - they are roulette, keno, craps, limited card games and slot machines. This proposed constitutional amendment authorizes the Legislature to also include wagering on sporting events as a type of gaming allowed in Deadwood.

The constitution requires the net municipal proceeds of Deadwood gaming to be devoted to Deadwood historic restoration and preservation.  Under this proposed amendment, those proceeds would be adjusted annually for inflation.

Under federal law, any gaming authorized by the Legislature to be offered in Deadwood would also be allowed at on-reservation tribal casinos

Fiscal Note:   

The legalization of sports betting in Deadwood is estimated to generate a total of $184,678 in new tax revenue in FY2022, which would be distributed as follows:

  • State General Fund:  $77,975
  • Tourism Promotion Fund:  $65,663
  • Lawrence County:  $16,416
  • City of Deadwood:  $8,208
  • Municipals in Lawrence County:  $8,208
  • School Districts in Lawrence County:  $8,208
  • Total Sports Betting Revenue:  $184,678  

 

Title - An initiated measure changing initiative and referendum requirements. (Version 1)

NOT CIRCULATING: Will Not Circulate - The sponsor(s) has not submitted a petition for SOS approval.  (Chamber Note – The sponsor of this measure is Cory Heidelberger – noted above as the sponsor of “Version 2” which is already being circulated for signatures).

 

Title - An initiated amendment to the South Dakota Constitution requiring physical damage in order for conduct to be considered a violation of law. 

Sponsor:  Levi Breyfogle, Coming Freedom

NOT CIRCULATING: The sponsor(s) has not submitted a petition for SOS approval.

Attorney General's Statement:   

Title: An initiated amendment to the South Dakota Constitution requiring physical damage in order for conduct to be considered a violation of the law.

Explanation:

This amendment significantly re-defines what would be considered a violation of state or local law.  Under the amendment, conduct is a violation only if the perpetrator damages another person or person's property.  Damages must be physical, quantifiable, and have already occurred.  Under the amendment, if a victim does not file a charge, there can be no prosecution.  If the victim is incapable of doing so, a family member may bring the charge, as long as the victim does not object.

The amendment would take effect July 1, 2021.  At that time, victims must be notified in all cases where there are pending charges, uncompleted sentences, or unpaid fine.  If a victim does not file a charge as described in this amendment, then the case, sentence, or fine must be dismissed.

The amendment prohibits the use of state and local funds, personnel, or property to implement or enforce any federal law that violates this amendment.

Some of the amendment's provisions are unclear and will require judicial interpretation and clarification.  Any state and local laws that do not meet the amendment's requirements would no longer be valid.  A substantial re-write of state and local criminal laws will be necessary.

Fiscal Note:   

The Fiscal Note for this proposal simply reprinted the text of the measure and did not offer any estimates on revenue or costs.

 

Title - A constitutional amendment allowing people to buy, sell, or rent any property or service.

Sponsor:  Levi Breyfogle, Coming Freedom  

NOT CIRCULATING: The sponsor(s) has not submitted a petition for SOS approval.

Attorney General's Statement:

Title: An initiated amendment to the South Dakota Constitution allowing people to buy, sell, or rent any property or service.

Explanation:

Under this amendment, people who are at least 18 years old may buy, sell, or rent any of their property or services to any willing person who is at least 18 years of age. In addition, any person who is 18 or older may possess or modify any property the person owns.

The amendment prohibits the use of state and local funds, personnel, or property to implement or enforce any federal law that violates this amendment.

The full scope and effect of this amendment are unclear and will likely require judicial clarification. Among other things, a court may determine the amendment decriminalizes the possession, sale, or rental of property or services that are currently illegal under state and local laws.

Fiscal Note:   

The Fiscal Note for this proposal simply reprinted the text of the measure and did not offer any estimates on revenue or costs.

 

Title - A constitutional amendment changing the eligibility requirements for running for legislative office. 

Sponsor:  Oliver Miner

NOT CIRCULATING: The sponsor(s) has not submitted a petition for SOS approval.

Attorney General's Statement:  Not Available at this time

Fiscal Note:  Not available at this time

Summary:  This proposal would lower the age a person could serve in the House of Representatives from age 21 under the current constitution to the age of 18.  It would not reduce the age to serve in the Senate which would remain at 21.

 

Title - An initiated measure on municipal gaming authorizing sale and consumption 24/7.

Sponsor:  Roger Tellinghuisen, Deadwood Gaming Association

NOT CIRCULATING:
The sponsor(s) has not submitted a petition for SOS approval.

Attorney General's Statement:  Not available at this time

Fiscal Note:  Not available at this time

Summary:  Current law prohibits serving alcohol after 2 am and before 7 am.  This change would allow alcohol to be served in gaming establishments (Deadwood and Reservation Casino’s) 24 hours a day except Christmas Day.

 

Title - An initiated measure on legalizing marijuana for medical use. 

Sponsor:  Melissa Mentele, New Approach SD

(Chamber Note – this is at least the third attempt by this group to get on the ballot.)

NOT CIRCULATING: The sponsor(s) has not submitted a petition for SOS approval.

Attorney General's Statement:  Not available at this time

Fiscal Note:  Not available at this time

Summary:  This is a 42 page bill that changes many definitions and establishes laws that will allow marijuana for medical use prescribed by a “practitioner” physician.  It also creates laws allowing the sale of cannabis.

 

Title - An initiated measure on legalizing, taxing and regulating marijuana.

Sponsor:  Melissa Mentele, New Approach SD

(Chamber Note – this is at least the third attempt by this group to get on the ballot.)

NOT CIRCULATING: The sponsor(s) has not submitted a petition for SOS approval.

Attorney General's Statement – Not available at this time

Fiscal Note:  Not available at this time.

Summary:  A 26 page bill that sets the structure for regulating and taxing medical marijuana.


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