MR. SPEAKER:

     The Conference Committee respectfully reports that it has considered SB 11 and the amendments thereto made by the House, and the disagreement of the two houses thereon, and recommends that SB 11 be amended as follows:

     On page 1, after line 15 of the House engrossed bill, insert:

"      Section 3. That § 13-55-33 be amended to read as follows:

     13-55-33.   One-half of the annual scholarship award shall be paid to public institutions on behalf of eligible students there enrolled or directly to eligible students enrolled at nonpublic institutions at the beginning of the fall semester and the other half shall be paid at the beginning of the spring semester. The amount of the annual award shall be as follows:

             (1)      One thousand dollars for the first year of attendance;

             (2)      One thousand dollars for the second year of attendance;

             (3)      One thousand five hundred dollars for the third year of attendance;

             (4)      Two thousand five hundred dollars for the fourth year of attendance.

     If, in any year, the total funds available to finance the scholarship awards are insufficient to permit each eligible recipient to receive the full amount provided in this section, the available moneys shall be prorated and distributed to each recipient in proportion to the entitlement contemplated by this section. The total amount of the scholarship may not exceed six five thousand dollars. ".

Respectfully submitted,                 Respectfully submitted,
Bill Peterson                            William F. Earley
House Committee Chair                Senate Committee Chair

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MESSAGES FROM THE SENATE

MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the reports of the Conference Committees on HB 1248, 1091, and 1182.

Also MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Conference Committee on SB 112.

Respectfully,
Patricia Adam, Secretary

MR. SPEAKER:

     The Conference Committee respectfully reports that it has considered SB 86 and the amendments thereto made by the House, and the disagreement of the two houses thereon, and recommends that SB 86 be amended as follows:

     On page 1 of the House Taxation Committee engrossed bill, delete lines 5 to 15 , inclusive.

     Delete page 2 .

     On page 3 , delete lines 1 to 3 , inclusive.

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     On page 1, line 1 of the House Taxation Committee engrossed bill, delete everything after " Act to " .

     On page 1 , delete line 2 .

Respectfully submitted,                 Respectfully submitted,
Gary D. Hanson                        Dave Knudson
House Committee Chair                Senate Committee Chair

Also MR. SPEAKER:

     The Conference Committee respectfully reports that it has considered SB 169 and the amendments thereto made by the House, and the disagreement of the two houses thereon, and recommends that SB 169 be amended as follows:

     On the House engrossed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 13-13-10.1 be amended to read as follows:

     13-13-10.1.   Terms used in this chapter mean:

             (1)      "Average daily membership," the average number of resident and nonresident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year, minus average number of pupils for whom the district receives tuition, except pupils described in subdivision (1A) and pupils for whom tuition is being paid pursuant to §   13-28-42 and plus the average number of pupils for whom the district pays tuition;

             (1A)      Nonresident students who are in the care and custody of the Department of Social Services, the Unified Judicial System, the Department of Corrections, or other state agencies and are attending a public school may be included in the average daily membership of the receiving district when enrolled in the receiving district. When counting a student who meets these criteria in its general enrollment average daily membership, the receiving district may begin the enrollment on the first day of attendance. The district of residence prior to the custodial transfer may not include students who meet these criteria in its general enrollment average daily membership after the student ceases to attend school in the resident district;

             (2)      "Adjusted average daily membership," calculated as follows:

             (a)      For districts with an average daily membership during the previous regular school year of two hundred or less, multiply 1.2 times the average daily membership;

             (b)      For districts with an average daily membership during the previous regular school year of less than six hundred, but greater than two hundred, raise the average daily membership to the 0.8293 power and multiply the result times 2.98;

             (c)      For districts with an average daily membership during the previous regular school year of six hundred or more, multiply 1.0 times their average daily membership;

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             (d)    Multiply the result of subsection (c) of this subdivision times the average daily membership;

             (3)      "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;

             (4)      "Per student allocation," for school fiscal year 2004 is $3,967.88. Each school fiscal year thereafter, the per student allocation is the previous fiscal year's per student allocation increased by the index factor;

             (5)      "Local need," the per student allocation multiplied by the sum of adjusted average daily membership plus the sparsity average daily membership ;

             (6)      "Local effort," the amount of ad valorem taxes generated in a school fiscal year by applying the levies established pursuant to §   10-12-42;

             (7)      "General fund balance," the unreserved fund balance of the general fund, less general fund exclusions plus, beginning with transfers made in fiscal year 2001, any transfers out of the general fund for the previous school fiscal year;

             (8)      "General fund balance percentage," is a school district's general fund balance divided by the school district's total general fund expenditures for the previous school fiscal year, the quotient expressed as a percent;

             (9)      "General fund base percentage," is the general fund balance percentage as of June 30, 2000. However, the general fund base percentage can never increase and can never be less than twenty percent;

             (10)      "Allowable general fund balance," the fund base percentage multiplied by the district's general fund expenditures in the previous school fiscal year;

             (11)      "Imputed interest rate," the average prime rate for the preceding fiscal year minus 2.5 percentage points;

             (12)      "General fund exclusions," revenue a school district has received from the imposition of the excess tax levy pursuant to §   10-12-43; revenue a school district has received from gifts, contributions, grants, or donations; revenue a school district has received under the provisions of § §   13-6-92 to 13-6-96, inclusive; and any revenue in the general fund set aside for a noninsurable judgment.

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     Section 2. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     Notwithstanding the provisions of §  13-13-10.1, the adjusted average daily membership of a sparse school district which has a geographical area of more than one thousand square miles and has an average daily membership of more than fifty and less than one hundred thirty is one hundred fifty-six.

     Section 3. Solely for the purposes of § §  13-13-72 and 13-13-72.1, local need does not include the sparsity average daily membership calculations.

     Section 4. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     No school district which has an average daily membership of six hundred or more as of July 1, 2004, may qualify for average daily membership adjustments in subdivision 13-13- 10.1(2(a)) or 13-13-10.1(2(b)) in subsequent years unless the district qualifies as a sparse school district.

     Section 5. There is hereby appropriated from the general fund the sum of one million two hundred thousand dollars ($1,200,000), or so much thereof as may be necessary, to the Department of Education to supplement state aid to education pursuant to the provisions of this Act for state fiscal year 2005.

     Section 6. The secretary of the Department of Education shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

     Section 7. Any amounts appropriated in this Act not lawfully expended or obligated by June   30, 2005, shall revert in accordance with §   4-8-21.

     Section 8. That § 13-13-73 be amended to read as follows:

     13-13-73.   The secretary of the Department of Education shall compute state aid to education for each school district under the foundation program according to the following calculations:

             (1)      Determine each school district's average daily membership;

             (2)      Multiply the per student allocation by the sum of the adjusted average daily membership plus the sparsity average daily membership to arrive at the local need per district;

             (3)      State aid is (a) local need minus local effort, or (b) zero if the calculation in (a) is a negative number;

             (4)      If the state aid appropriation for the general support of education is in excess of the entitlement provided for in this section, the excess shall be used to fund any shortfall of the appropriation as provided for in § §   13-37-36.3 and 13-37-43. The secretary shall report to the Governor by January seventh of each year, the amount of state aid necessary to fully fund the general aid formula in the current year. If a shortfall in the state aid appropriation for general education exists that cannot be covered by

§   13-37-45, the Governor shall inform the Legislature and provide a proposal to eliminate the shortfall. "

     On page 1, line 2 of the House engrossed bill, after " revenue " insert "and appropriate money therefor".

Respectfully submitted,                 Respectfully submitted,
John Teupel                            Eric H. Bogue
House Committee Chair                Senate Committee Chair

MESSAGES FROM THE SENATE

MR. SPEAKER:

    I have the honor to return herewith HCR 1019 in which the Senate has concurred.

Respectfully,
Patricia Adam, Secretary

MOTIONS AND RESOLUTIONS

MR. SPEAKER:

     The Conference Committee respectfully reports that it has considered SB 28 and the amendments thereto made by the House, and the disagreement of the two houses thereon, and recommends that the Senate do not concur with the House amendments and do not appoint a new committee.

Respectfully submitted,                 Respectfully submitted,
Bill Peterson                            Eric H. Bogue
House Committee Chair                Senate Committee Chair

Also MR. SPEAKER:

     The Conference Committee respectfully reports that it has considered SB 206 and the amendments thereto made by the House, and the disagreement of the two houses thereon, and recommends that SB 206 be amended as follows:

    On the House engrossed bill, delete all amendments, thus restoring the bill to the printed version.

Respectfully submitted,                 Respectfully submitted,
Larry Rhoden                        Ed Olson
House Committee Chair                Senate Committee Chair

MOTIONS AND RESOLUTIONS

    House Page Resolution 4: Introduced by Representatives Adelstein; Bartling; Begalka; Bradford; Buckingham, Burg; Christensen; Cradduck; Cutler; Davis; Deadrick; Dykstra; Elliott; Engels; Frost; Fryslie; Garnos; Gassman; Gillespie; Glenski; Hackl; Hanson; Hargens; Haverly; Heineman; Hennies; Hundstad; Hunhoff; Juhnke; Klaudt; Koistinen; Konold; Kraus; Kroger; Lange; LaRue; Lintz; Madsen; McCaulley; McCoy; McLaughlin; Miles; Murschel; Nesselhuf;

Novstrup; O'Brien; Olson (Mel); Olson (Ryan); Pederson (Gordon); Peterson (Bill); Peterson (Jim); Putnam; Rave; Rhoden; Rounds; Schafer; Sebert; Sigdestad; Smidt; Solum; Teupel; Thompson; Valandra; Van Etten; Van Gerpen; Van Norman; Weems, Wick; Williamson; Speaker Michels

        A RESOLUTION,  Expressing the appreciation and gratitude of the House of Representatives of the Seventy-ninth Legislature of the State of South Dakota to Grant Andrews, Tauren Deatherage, Cole Juhnke, Rachel Knust, Megan MacCormick, Emily Peters, Kathryn Schneider, Heather Seim, Nicole Torberson, Sarah Trewatha, Alandra Van Vleet, and Rebecca Wood.

    WHEREAS, the above named served loyally as pages for the House of Representatives of the Seventy-ninth Legislative Session; and

    WHEREAS, the members of the Seventy-ninth House of Representatives express their most sincere appreciation to these young people for their service to the state; and

    WHEREAS, the members extend to these young people their wishes for every success in life:

    NOW, THEREFORE, BE IT RESOLVED, by the House of Representatives of the Seventy-ninth Legislature of the State of South Dakota, that a personal copy of this resolution be duly certified and furnished to each page on this last day of service.

    Rep. Bill Peterson moved that House Page Resolution 4 be adopted.

    Which motion prevailed and the resolution was adopted.

CONSIDERATION OF REPORTS OF CONFERENCE COMMITTEES

MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has failed to adopt the report of the Conference Committee on SB 213 and no new committee was appointed.

Also MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Conference Committee on HB 1062.

Respectfully,
Patricia Adam, Secretary

MOTIONS AND RESOLUTIONS

MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has failed to adopt the report of the Conference Committee on SB 169 and no new committee was appointed.

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Also MR. SPEAKER:

    I have the honor to return herewith HCR 1022 in which the Senate has concurred.

Respectfully,
Patricia Adam, Secretary

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the reports of the Conference Committees on SB 11, 86, 206, and 28.

Also MR. SPEAKER:

    I have the honor to transmit herewith SB 195 which has passed the Senate and your favorable consideration is respectfully requested.

Respectfully,
Patricia Adam, Secretary

FIRST READING OF SENATE BILLS AND JOINT RESOLUTIONS