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Gov. Daugaard Vetoes HB 1149

            Office of Gov. Dennis Daugaard

500 E. Capitol Ave.

Pierre, S.D. 57501







FOR IMMEDIATE RELEASE:  Friday, March 17, 2017

CONTACT:  Tony Venhuizen or Kelsey Pritchard at 605-773-3212



Gov. Daugaard Vetoes HB 1149


PIERRE, S.D. – Gov. Dennis Daugaard has vetoed the following bill:


HB 1149 – An Act to revise the tax on certain telecommunication services and devices.


For more information about this bill and other bills, visit legis.sd.gov.          




Note: A copy of the Governor’s veto message follows:


March 17, 2017


The Honorable G. Mark Mickelson

Speaker of the House

500 East Capitol Avenue

Pierre, SD 57501


Dear Mr. Speaker and Members of the House of Representatives,


I respectfully return to you House Bill 1149, with my VETO.


House Bill 1149 is an Act to revise the tax on certain telecommunication services and devices.   


This bill reduces the access fee on certain communication devices and services from

15 cents per month to 14 cents per month.  At present, 90 percent of this fee is directed into the telecommunication fund for the deaf.  Proponents of this bill voiced concern regarding the growth of the telecommunication fund, as revenue from the fee has generally outpaced authorized spending.  Due to these past surpluses, money in this fund has been reallocated to fund other projects. 


The outlook of this fund, however, does not align with its history.  The Bureau of Finance and Management estimates this proposed reduction could result in a long-term structural deficit in the telecommunication fund for the deaf.


Furthermore, I cannot support reducing this fee in a tough budget year.  If in the future we find that the fees collected outpace the need, the legislature should consider institutionalizing the use of these funds to support other government purposes by reallocating some additional portion of the fee to the general fund. 


For these reasons, I ask that you sustain my veto.


Respectfully submitted,




Dennis Daugaard