Bill > HB1026

This bill establishes a new regulatory framework for property data collection in South Dakota, requiring individuals who perform property data collection, defined as observing real estate and its improvements for financial transactions and preparing reports, to be licensed by the Department of Labor and Regulation as "property data collectors." To obtain a license, individuals must complete a course, pass an exam, gain supervised experience, and obtain specific insurance (errors and omissions, general liability, and a business services bond), and undergo a background check; a violation of this licensing requirement is a Class 1 misdemeanor. The bill also mandates that companies that employ or contract these collectors, known as "property data collection companies," must register with the department and maintain their own general liability insurance and a business services bond. While certain professionals like architects, engineers, real estate appraisers, and brokers are exempt from individual licensing when acting within their professional scope, they are still subject to other provisions of this chapter. The bill also outlines requirements for license and registration renewal, specifies that the department will establish fees and promulgate rules for these processes, and creates a dedicated fund for the administration of these new regulations. Furthermore, it prohibits influencing property data collectors and requires them to disclose specific information to property owners, including that they are not licensed appraisers.

Business and Industry

https://sdlegislature.gov/#/Session/Bill/26562