JOURNAL OF THE SENATE

SEVENTY-NINTH SESSION  



THIRTY-FOURTH DAY



STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Friday, February 27, 2004

     The Senate convened at 9:00 a.m., pursuant to adjournment, the President presiding.

     The prayer was offered by the Chaplain, Pastor Brad Urbach, followed by the Pledge of Allegiance led by Senate page Tara Trask.

     Roll Call: All members present.

APPROVAL OF THE JOURNAL


MR. PRESIDENT:

     The Committee on Legislative Procedure respectfully reports that the Secretary of the Senate has had under consideration the Senate Journal of the thirty-third day.

     All errors, typographical or otherwise, are duly marked in the temporary journal for correction.

     And we hereby move the adoption of the report.

Respectfully submitted,
Arnold M. Brown, Chair

     Which motion prevailed and the report was adopted.
HONORED GUESTS


     The President introduced the South Dakota Boys and Girls Club Youths of the Year: Dan Ostrello, Pierre; Alise Kelting, Hill City; Brandon Smid, Aberdeen; Cassandra Krump, Watertown; Joe Mesteth, Pine Ridge; and Stephanie Carda, Wagner, to the body.

COMMUNICATIONS AND PETITIONS


February 26, 2004

Mr. President and Members of the Senate:

     I have the honor to inform you that I have approved Senate Bills 43, 44, 74, 115, and 210, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

REPORTS OF STANDING COMMITTEES


MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 112 and finds the same correctly enrolled.

Respectfully submitted,
Arnold M. Brown, Chair

REPORTS OF CONFERENCE COMMITTEES


MR. PRESIDENT:

     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

Also MR. PRESIDENT:

     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.

     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

MOTIONS AND RESOLUTIONS


     HCR 1019:   A CONCURRENT RESOLUTION,   Requesting the United States Forest Service to quickly address the poor health of the Black Hills National Forest.

    Was read the second time.

     Sen. Apa moved that the Senate do concur in HCR 1019 as found on page 786 of the House Journal.

     The question being on Sen. Apa's motion that the Senate do concur in HCR 1019.

     And the roll being called:

     Yeas 35, Nays 0, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and HCR 1019 was concurred in.

     Sen. Bogue moved that the Senate do now recess until 10:15 a.m., which motion prevailed and at 9:35 a.m., the Senate recessed.

RECESS


     The Senate reconvened at 10:15 a.m., the President presiding.

EXECUTIVE VETOES AND RECOMMENDATIONS

February 26, 2004

The Honorable Dennis Daugaard
President of the Senate
State Capitol
Pierre, SD 57501-5070

Dear Mr. President and Members of the Senate:

I herewith return Senate Bill 29 and VETO the same. It is: "An Act to establish one rate for the telephone gross receipts tax and to provide uniform methods to administer the tax."

Senate Bill 29 involves the telephone gross receipts tax, which is a tax in lieu of a property tax on the telephone companies. The money from the telephone gross receipts tax goes to the school districts. Currently, about $7.2 million is paid out to the school districts. A rate reduction was passed by the Legislature in 2002. The Legislature reduced the maximum rate from 5% to 4% but included a "hold harmless" clause which guaranteed that the school districts would not receive less money than they received in 2002. This "hold harmless" clause expires for taxes payable after this year.

Because the gross receipts of the telephone companies did not increase as was anticipated in 2002, the school districts are facing a collective reduction of $622,000 when the "hold harmless" provision expires. Senate Bill 29 changes the telephone gross receipts tax to a flat rate of 4%, eliminating the current 2% and 3% tax rates and thereby restores the funding the schools were slated to lose this year.

An amendment was added to Senate Bill 29 in the Senate Taxation Committee on January 23, 2004. This amendment explicitly authorizes telephone companies to line itemize the tax on the bills to their customers. This amendment was unnecessary, and inappropriately gives the telephone companies authority to pass on a tax, a tax that is in lieu of a property tax, directly on to their customers. It is for this reason that I am unwilling to sign this legislation into law. House Bill 1298, which I support, is a mirror image of Senate Bill 29 without the unacceptable amendment language. I urge your support of House Bill 1298 to ensure the schools will continue to receive this funding.

I respectfully request that you concur with my action.

Respectfully submitted,
M. Michael Rounds
Governor

MESSAGES FROM THE HOUSE


MR. PRESIDENT:

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

Respectfully,
Karen Gerdes, Chief Clerk

REPORTS OF CONFERENCE COMMITTEES


MR. PRESIDENT:

     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;

                 (2A)    "Sparse school district," a school district which, during the previous school year: has a general fund balance percentage as defined in this section of twenty percent or less; levies ad valorem taxes at the maximum rates allowed pursuant to §  10-12-42; has

an average daily membership of less than six hundred; has a geographical area of more than five hundred square miles; and has an average daily membership per square mile of 0.6 or less;

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

             (a)    For sparse school districts, divide the average daily membership by the area of the school district in square miles;
             (b)    If the result of subsection (a) of this subdivision is 0.6 or less, multiply the quotient obtained in subsection (a) times negative 0.2;
             (c)    Add 0.12 to the result of subsection (b) of this subdivision; and
             (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.

         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

SIGNING OF BILLS


     The President publicly read the title to

     SB 112: FOR AN ACT ENTITLED, An Act to  require state agencies promulgating rules pursuant to the Administrative Procedures Act to provide an impact statement on small business.

     HB 1031: FOR AN ACT ENTITLED, An Act to  revise the General Appropriations Act for fiscal year 2004 for the Departments of Social Services, Education, Corrections, and Human Services.

     HB 1052: FOR AN ACT ENTITLED, An Act to  revise the premium tax on certain small life insurance policies.

     HB 1087: FOR AN ACT ENTITLED, An Act to  revise the property tax levies for the general fund of a school district.

     HB 1158: FOR AN ACT ENTITLED, An Act to  prohibit the taking of certain pictures of another without that person's consent and to provide a penalty therefor.

     HB 1191: FOR AN ACT ENTITLED, An Act to  establish certain legislative findings, to reinstate the prohibition against certain acts causing the termination of an unborn human life and to prescribe a penalty therefor.

     HB 1202: FOR AN ACT ENTITLED, An Act to  create a task force to study state and local government.

     HB 1218: FOR AN ACT ENTITLED, An Act to  require the Department of Health to provide certain information to the Legislature regarding the funding for tobacco use prevention and reduction programs.

     HB 1228: FOR AN ACT ENTITLED, An Act to  provide for interstate contracts for the treatment of individuals with mental illness or chemical dependency and to declare an emergency.

     HB 1297: FOR AN ACT ENTITLED, An Act to  restrict the alienation of public state real property to the federal government.

     HB 1298: FOR AN ACT ENTITLED, An Act to  establish one rate for the telephone gross receipts tax and to provide uniform methods to administer the tax.

     HB 1311: FOR AN ACT ENTITLED, An Act to  provide for the regulation of pharmacy benefits management.

     HJR 1003: A JOINT RESOLUTION, Proposing and submitting to the electors at the next general election amendments to Article VIII of the Constitution of the State of South Dakota to authorize the provision of certain services to all children of school age.

     And signed the same in the presence of the Senate.

     Sen. Bogue moved that the Senate do now recess until 2:00 p.m., which motion prevailed and at 11:34 a.m., the Senate recessed.

RECESS


     The Senate reconvened at 2:00 p.m., the President presiding.

MOTIONS AND RESOLUTIONS


    SENATE PAGE RESOLUTION 4 Introduced by: Senators Abdallah, Albers, Apa, Bogue, Brown, de Hueck, Dempster, Dennert, Duenwald, Duniphan, Duxbury, Earley, Greenfield, Ham-Burr, Jaspers, Kelly, Kleven, Kloucek, Knudson, Koetzle, Kooistra, Koskan, Kurtenbach, LaPointe, McCracken, Moore, Nachtigal, Napoli, Olson (Ed), Reedy, Schoenbeck, Sutton (Dan), Sutton (Duane), Symens, and Vitter

        A RESOLUTION, Expressing the appreciation and gratitude of the Senate of the Seventy-ninth Legislature of the State of South Dakota to Jason Booth, Katya Christenson, Laura Compton, Jordan Fink, Jeremiah Johnson, Quinn Kelsey, Julius Krein, Jodi Neugebauer, Nehemiah Torberson, and Tara Trask.


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

    WHEREAS, the members of the Seventy-ninth Senate 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 Senate 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.

     Sen. Bogue moved that Senate Page Resolution 4 be adopted.

     The question being on Sen. Bogue's motion that Senate Page Resolution 4 be adopted.

     And the roll being called:

     Yeas 35, Nays 0, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried.

CONSIDERATION OF EXECUTIVE VETOES AND RECOMMENDATIONS


     The Senate proceeded to the reconsideration of SB 29 pursuant to the veto of the Governor and the veto message found on page 734 of the Senate Journal as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.

     The question being "Shall SB 29 pass, the veto of the Governor notwithstanding?"

     And the roll being called:

     Yeas 0, Nays 35, Excused 0, Absent 0

     Nays:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the bill not having received an affirmative vote of a two-thirds majority of the members- elect, the President declared the bill lost, sustaining the Governor's veto.

REPORTS OF STANDING COMMITTEES


MR. PRESIDENT:

    The Committee on Appropriations respectfully reports that it has had under consideration SB 195 and returns the same with the recommendation that said bill be amended as follows:

195af

     On page 1, line 16 of the printed bill, DECREASE personal services GENERAL FUNDS $301,109.

     On page 1, line 17, INCREASE operating expenses GENERAL FUNDS $301,109.

     On page 1, line 20, DECREASE FTEs 3.0.

    Adjust all totals accordingly.

Description: This moves $301,109 of general funds in personal services to operating expenses for the contract between the State and the Science and Technology Authority. It also decreases FTEs 3.0. (bfm1)


195mj

     On page 11, line 25 of the printed bill, INCREASE personal services GENERAL FUNDS $28,852.

    On page 11, line 26, INCREASE operating expenses GENERAL FUNDS $6,577.

    On page 11, line 29, INCREASE FTEs 1.0.

    Adjust all totals accordingly.

Description: Adds 1.0 FTE for an administrative assistant for the Division of Tribal Relations, $28,852 in personal services for salary and benefits, and $6,577 for operating expenses. (bfm2)


195zg

     On page 14 of the printed bill, line 13, INCREASE FTEs 6.0.

    Adjust all totals accordingly.

Description: This is an increase of 6.0 FTEs due to the passage of HB 1308, An Act to establish the sales tax on food refund program. (bfm3)


195ue

     On page 14, line 31 of the printed bill, INCREASE operating expenses GENERAL FUNDS $222,658 and INCREASE operating expenses FEDERAL FUNDS $431,066.

    Adjust all totals accordingly.

Description: Funds are needed to correct a data entry error in the Governor's recommended budget for Adult Services and Aging of the Department of Social Services. (195bfm4)


195zf

     On page 26 of the printed bill, line 25, INCREASE operating expenses GENERAL FUNDS $69,128.

    Adjust all totals accordingly.

Description: Adds $69,128 in general funds to the Adjutant General division for SB7 which expands the National Guard Tuition reimbursement program to undergraduate students: nonresident and self support. (bfm7)


195zh

     On page 33 of the printed bill, line 3, INCREASE operating expenses OTHER FUNDS $592,628.

    Adjust all totals accordingly.

Description: To increase other fund authority for UJS due to the fee increase in HB 1103. (bfm8)


195ze

     On page 34, line 11 of the printed bill, DECREASE personal services GENERAL FUNDS $416,664 and INCREASE personal services OTHER FUNDS $416,664.

    Adjust all totals accordingly.

Description: Due to HB 1053 and the fee being increased by $3 from its current standing, this is the necessary action to reflect that change in fee. In the Governor's FY2005 budget, $833,328 of general funds was loaded into the budget (assuming no fee increase). Since a $3 fee increase was adopted, general funds can be reduced by $416,664. (bfm9).

195aa

     On page 39, line 9 of the printed bill, delete " $75 " and insert "$60".

Description: The State Fair Commission's role has changed from a management capacity to an advisory capacity. The capacity change is already in statute. This amendment would reduce the per diem payable from $75 to $60. (bfm10)


195ac

     On page 9, line 10 of the printed bill, INCREASE operating expenses GENERAL FUNDS $230,702.

    Adjust all totals accordingly.

Description: Increase general funds for the Resource Conservation and Forestry Division to make more money available for conservation grant purposes.


195ad

     On page 9, line 24 of the printed bill, INCREASE operating expenses GENERAL FUNDS $260,000.

    Adjust all totals accordingly.

Description: Increase the State Fair operating budget.


195ag

     On page 4, line 38 of the printed bill, DECREASE operating expenses OTHER FUNDS $20,000.

    Adjust all totals accordingly.

Description: Decrease BIT Administration's operating budget.


195mf

     On page 11, line 33 of the printed bill, INCREASE operating expenses GENERAL FUNDS $30,000 and INCREASE operating expenses FEDERAL FUNDS $30,000.

    Adjust all totals accordingly.

Description: Increase Arts Council budget.

195uj

     On page 14, line 10 of the printed bill, INCREASE operating expenses GENERAL FUNDS $51,438 and INCREASE operating expenses FEDERAL FUNDS $8,592.

     On page 14, line 17, INCREASE operating expenses GENERAL FUNDS $740,213 and INCREASE operating expenses FEDERAL FUNDS $1,505,450.

     On page 14 , line 31, INCREASE operating expenses GENERAL FUNDS $1,448,553, and INCREASE operating expenses FEDERAL FUNDS $2,806,714.

     On page 14 , line 38, INCREASE operating expenses GENERAL FUNDS $17,641, and INCREASE operating expenses FEDERAL FUNDS $49,401, and INCREASE operating expenses OTHER FUNDS $27,183.

     On page 16 , line 10, INCREASE operating expenses OTHER FUNDS $12,744.

     On page 27 , line 25, INCREASE operating expenses GENERAL FUNDS $9,556.

     On page 28 , line 31, INCREASE operating expenses GENERAL FUNDS $99,251 and INCREASE operating expenses FEDERAL FUNDS $89,715.

     On page 29 , line 17, INCREASE operating expenses GENERAL FUNDS $3,188.

     On page 30 , line 3, INCREASE operating expenses GENERAL FUNDS $342,891 and INCREASE operating expenses FEDERAL FUNDS $629,881.

     On page 30 , line 17, INCREASE operating expenses GENERAL FUNDS $72,098 and INCREASE operating expenses FEDERAL FUNDS $37,356.

     On page 30 , line 24, INCREASE operating expenses GENERAL FUNDS $19,767 and INCREASE operating expenses FEDERAL FUNDS $20,701 and INCREASE operating expenses OTHER FUNDS $7,202.

     On page 31 , line 31, INCREASE operating expenses GENERAL FUNDS $137,279 and INCREASE operating expenses FEDERAL FUNDS $103,780.

    Adjust all totals accordingly.

Description: To increase the provider inflation rate from 1.6% to 3% in Human Services, Social Services, Health, and Corrections.


195md

     On page 20, line 10 of the printed bill, DECREASE operating expenses OTHER FUNDS $75,000.

    Adjust all totals accordingly.

Description: SDRS had requested $75,000 to be used for a search and evaluation of prospective administrators for the supplemental retirement plan. The Board of Trustees has decided to renew the existing contract with Nationwide Retirement Solutions, therefore will not need $75,000.


195mc

     On page 25, line 23 of the printed bill, INCREASE personal services GENERAL FUNDS $135,882.

     On page 25, line 27 of the printed bill, INCREASE FTEs 2.0

    Adjust all totals accordingly.

Description: NSU's E-Learning Center--Provide additional staffing and tech support to the E- Learning operation to meet increased demand from K-12 students for more courses in foreign languages and algebra.


195mb

     On page 25, line 24 of the printed bill, INCREASE operating expenses GENERAL FUNDS $85,000.

    Adjust all totals accordingly.

Description: NSU's E-Learning Center - Add one E-Learning studio on the NSU campus to fulfill the increased demand for courses being delivered to K-12 schools and to support the growing university E-Learning curriculum needs. Current studio space is operating at capacity.


195ho

     On the printed bill, delete the previously adopted amendment (195ue).

195he

     On page 16, after line 13 of the printed bill, insert:


  		GENERAL FUNDS   FEDERAL FUNDS   OTHER FUNDS   TOTAL FUNDS  
"Tobacco prevention and reduction plan  
    Personal Services   $0   $0   $0   $0  
    Operating Expenses   $750,000   $0   $0   $750,000  
    Total   $750,000   $0   $0   $750,000  
    F.T.E.         0.0"  


     On page 22 , delete lines 8 to 13 , inclusive, and insert:


  		GENERAL FUNDS   FEDERAL FUNDS   OTHER FUNDS   TOTAL FUNDS  
"Education Service Agencies  
    Personal Services   $0   $0   $0   $0  
    Operating Expenses   $500,000   $0   $0   $500,000  
    Total   $500,000   $0   $0   $500,000  
    F.T.E.         0.0"  


     On page 22 , line 31, INCREASE operating expenses GENERAL FUNDS $456,960.

     On page 24 , after line 15, insert:


  		GENERAL FUNDS   FEDERAL FUNDS   OTHER FUNDS   TOTAL FUNDS  
"South Dakota Scholarships  
    Personal Services   $0   $0   $0   $0  
    Operating Expenses   $1,300,000   $0   $0   $1,300,000  
    Total   $1,300,000   $0   $0   $1,300,000  
    F.T.E.         0.0"  


     On page 37 , delete lines 9 to 12 , inclusive, and insert:

    "Section 29. The state treasurer shall transfer to the state general fund money from the education enhancement trust fund, the amount identified by notice of the state investment officer pursuant to §  4-5-29.2, for the purposes herein indicated:

    Department of Health

Tobacco prevention and reduction plan

$750,000

    Department of Education


State Aid to General Education
$6,722,231

State Aid to Special Education

$1,040,161

Education Service Agencies

$500,000

Technology in Schools

$3,553,385

Postsecondary Vocational Education

$456,960

    Board of Regents

South Dakota Scholarships

$1,300,000

Total

$14,322,737".

Adjust all totals accordingly

Description: After the distribution from the education enhancement trust fund to the state general fund, appropriates $750,000 to the Department of Health for tobacco prevention and reduction plan, $456,960 to the Department of Education for postsecondary vocational education, $500,000 to the Department of Education for education service agencies, and $1.3 million for scholarships. Section 29 is revised to show the allocation of money from the education enhancement trust fund.


195ah

     On page 3, line 9 of the printed bill, DECREASE personal services OTHER FUNDS $33,211.

     On page 3, line 13, DECREASE FTEs 2.5.

    On page 3, line 16, DECREASE personal services OTHER FUNDS $72,899.

     On page 3, line 20, DECREASE FTEs 2.0.

    On page 4, line 23, DECREASE personal services OTHER FUNDS $13,289.

     On page 4, line 27, DECREASE FTEs 0.5.

    On page 7, line 23, DECREASE personal services OTHER FUNDS $36,449.

     On page 7, line 27, DECREASE FTEs 1.0.

    On page 7, line 37, DECREASE personal services OTHER FUNDS $22,406.

     On page 7, line 41, DECREASE FTEs 1.0.

    On page 8, line 16, DECREASE personal services OTHER FUNDS $8,877.

     On page 8, line 20, DECREASE FTEs 0.5.

     On page 9, line 27, DECREASE FTEs 5.5.

     On page 10, line 13, DECREASE FTEs 0.3.

    On page 12, line 31, DECREASE personal services FEDERAL FUNDS $2,289 and DECREASE personal services OTHER FUNDS $22,066.

    On page 12, line 35, DECREASE FTEs 1.0.

    On page 20, line 31, DECREASE personal services OTHER FUNDS $63,027.

    On page 20, line 35, DECREASE FTEs 2.0.

    On page 24, line 24, DECREASE personal services OTHER FUNDS $17,015.

    On page 24, line 28, DECREASE FTEs 1.0.

    On page 24, line 31, DECREASE personal services FEDERAL FUNDS $26,627 and DECREASE personal services OTHER FUNDS $41,458.

    On page 24, line 35, DECREASE FTEs 2.0.

    On page 32, line 10, DECREASE personal services GENERAL FUNDS $20,667.

    On page 32, line 14, DECREASE FTEs 1.0.

    Adjust all totals accordingly.

Description: Elimination of personal services for those FTEs that have been vacant for 180 days or more in the Bureaus of Administration (4.5 FTE) and of Information and Telecommunications (0.5 FTE), Departments of Revenue and Regulation (2.5 FTE), Agriculture (5.8 FTE), Game, Fish and Parks (1.0 FTE), Transportation (2.0 FTE), and Environment and Natural Resources (1.0 FTE), USD (1.0 FTE), and USD School of Medicine (2.0 FTE).

The total decrease in appropriations is $380,280 from all funds ($20,667 from the state general fund, $28,916 from federal funds, and $330,697 from other funds).


195ud

     On page 31, line 24 of the printed bill, DECREASE operating expenses GENERAL FUNDS $192,701 and DECREASE operating expenses FEDERAL FUNDS $132,542 and DECREASE operating expenses OTHER FUNDS $40,603.

    Adjust all totals accordingly.


Description: Remove the food service rate adjustment in Human Services.

195hk

     In addition to any other changes

     On page 26, line 25 of the printed bill, INCREASE operating expenses GENERAL FUNDS $58,000.

    Adjust all totals accordingly.

Description: Funding for National Guard tuition credit for graduate study (@ 50% of resident graduate rates).


195zn

     On page 36, line 11 of the printed bill, INCREASE operating expenses GENERAL FUNDS $30,000.

    Adjust all totals accordingly.

Description: Operating expense increase for State Auditor's Office.


195zm

     On page 22, line 24 of the printed bill, INCREASE operating expenses GENERAL FUNDS $500,000.

    Adjust all totals accordingly.

Description: Career and Technical Education.


195hm

     On page 14 of the printed bill, line 10, INCREASE operating expenses FEDERAL FUNDS $200,000.

    Adjust all totals accordingly.

Description: Add $200,000 from the TANF federal fund for a cost of living adjustment for TANF recipients.


195hl

     In the previously adopted amendment (195he), at the On page 24, after line 15 instruction, delete "South Dakota Scholarships" and insert "South Dakota Opportunity Scholarships".
    In the previously adopted amendment (195he), in Section 29, delete "South Dakota Scholarships" and insert "South Dakota Opportunity Scholarships".

     And that as so amended said bill do pass.

Respectfully submitted,
Jerry Apa, Chair

REPORTS OF CONFERENCE COMMITTEES


MR. PRESIDENT:

     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. PRESIDENT:

     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

MESSAGES FROM THE HOUSE


MR. PRESIDENT:

    I have the honor to transmit herewith HCR 1022 which has been adopted by the House and your concurrence is respectfully requested.

Respectfully,
Karen Gerdes, Chief Clerk
MOTIONS AND RESOLUTIONS


     HCR 1022:   A CONCURRENT RESOLUTION,   Recognizing and commending the Sioux Falls Lincoln High School Patriot Marching Band for its invitation to participate in the 2005 Rose Parade.

     Was read the first time and the President waived the committee referral and placed HCR 1022 on the calendar for immediate consideration.

     HCR 1022:   A CONCURRENT RESOLUTION,   Recognizing and commending the Sioux Falls Lincoln High School Patriot Marching Band for its invitation to participate in the 2005 Rose Parade.

    Was read the second time.

     Sen. Kelly moved that the Senate do concur in HCR 1022 as found on page 818 of the House Journal.

     The question being on Sen. Kelly's motion that the Senate do concur in HCR 1022.

     And the roll being called:

     Yeas 35, Nays 0, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and HCR 1022 was concurred in.

CONSIDERATION OF REPORTS OF CONFERENCE COMMITTEES


     Sen. Ham-Burr moved that the report of the Conference Committee on SB 213 as found on page 724 of the Senate Journal be adopted.

     Sen. Bogue moved as a substitute motion that the Senate do not adopt the report of the Conference Committee on SB 213 and do not appoint a new committee.

     The question being on Sen. Bogue's substitute motion to not adopt the report of the Conference Committee on SB 213 and to not appoint a new committee.

     And the roll being called:

     Yeas 20, Nays 15, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; Dempster; Dennert; Duenwald; Duniphan; Earley; Ham- Burr; Jaspers; Kelly; Kleven; Knudson; Kurtenbach; LaPointe; McCracken; Napoli; Olson (Ed)

     Nays:
de Hueck; Duxbury; Greenfield; Kloucek; Koetzle; Kooistra; Koskan; Moore; Nachtigal; Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried, the report was not adopted, and no new committee was appointed.

     Sen. Jaspers moved that the report of the Conference Committee on HB 1062 as found on page 663 of the Senate Journal be adopted.

     The question being on Sen. Jaspers' motion that the report of the Conference Committee on HB 1062 be adopted.

     And the roll being called:

     Yeas 35, Nays 0, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. Earley moved that the report of the Conference Committee on SB 11 as found on page 732 of the Senate Journal be adopted.

     The question being on Sen. Earley's motion that the report of the Conference Committee on SB 11 be adopted.

     And the roll being called:

     Yeas 35, Nays 0, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. Knudson moved that the report of the Conference Committee on SB 86 as found on page 733 of the Senate Journal be adopted.

     The question being on Sen. Knudson's motion that the report of the Conference Committee on SB 86 be adopted.

     And the roll being called:

     Yeas 34, Nays 0, Excused 1, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     Excused:
Duniphan

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. McCracken moved that the report of the Conference Committee on SB 169 as found on page 736 of the Senate Journal be adopted.

     Sen. Bogue moved as a substitute motion that the Senate do not adopt the report of the Conference Committee on SB 169 and that a new committee on the part of the Senate be appointed to meet with a like committee on the part of the House to adjust the differences between the two houses.

     Which motion lost.

     Sen. Koetzle moved as a substitute motion that the Senate do not adopt the report of the Conference Committee on SB 169 and do not appoint a new committee.

     The question being on Sen. Koetzle's substitute motion to not adopt the report of the Conference Committee on SB 169 and to not appoint a new committee.

     And the roll being called:

     Yeas 31, Nays 4, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Koetzle; Kooistra; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     Nays:
Knudson; Koskan; Napoli; Olson (Ed)

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried, the report was not adopted, and no new committee was appointed.

     Sen. Bogue moved that the report of the Conference Committee on SB 28 as found on page 751 of the Senate Journal be adopted.

     The question being on Sen. Bogue's motion that the report of the Conference Committee on SB 28 be adopted.

     And the roll being called:

     Yeas 34, Nays 0, Excused 1, Absent 0

     Yeas:
Abdallah; Albers; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     Excused:
Apa

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. Ed Olson moved that the report of the Conference Committee on SB 206 as found on page 751 of the Senate Journal be adopted.

     The question being on Sen. Olson's motion that the report of the Conference Committee on SB 206 be adopted.

     And the roll being called:

     Yeas 35, Nays 0, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Greenfield; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Koetzle; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Napoli; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     So the motion having received an affirmative vote of a two-thirds majority of the members- elect, the President declared the motion carried and the report was adopted.

CONSIDERATION OF REPORTS OF COMMITTEES


     Sen. Bogue moved that the report of the Standing Committee on

     Appropriations on SB 195 as found on page 742 of the Senate Journal be adopted.

     Which motion prevailed and the report was adopted.

SIGNING OF BILLS


     The President publicly read the title to

     HB 1091: FOR AN ACT ENTITLED, An Act to  extend the fifty percent tuition privilege for National Guard members to include graduate study.

     HB 1182: FOR AN ACT ENTITLED, An Act to  revise certain provisions relating to the use of general occupation tax revenue.

     HB 1248: FOR AN ACT ENTITLED, An Act to  permit counties, in the absence of an organized township, to levy special assessments to maintain and improve certain public rights- of-way.

     And signed the same in the presence of the Senate.

MESSAGES FROM THE HOUSE


MR. PRESIDENT:

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

Respectfully,
Karen Gerdes, Chief Clerk

     Sen. Bogue moved that the Senate do now recess until 3:20 p.m., which motion prevailed and at 3:02 p.m., the Senate recessed.

RECESS


     The Senate reconvened at 3:20 p.m., the President presiding.

SECOND READING OF SENATE BILLS AND JOINT RESOLUTIONS


     SB 195:   FOR AN ACT ENTITLED, An Act to   appropriate money for the ordinary expenses of the legislative, judicial, and executive departments of the state, the expenses of state institutions, interest on the public debt, and for common schools.

     Was read the second time.

     The question being "Shall SB 195 pass as amended?"

     And the roll being called:

     Yeas 32, Nays 3, Excused 0, Absent 0

     Yeas:
Abdallah; Albers; Apa; Bogue; Brown; de Hueck; Dempster; Dennert; Duenwald; Duniphan; Duxbury; Earley; Ham-Burr; Jaspers; Kelly; Kleven; Kloucek; Knudson; Kooistra; Koskan; Kurtenbach; LaPointe; McCracken; Moore; Nachtigal; Olson (Ed); Reedy; Schoenbeck; Sutton (Dan); Sutton (Duane); Symens; Vitter

     Nays:
Greenfield; Koetzle; Napoli

     So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.


REPORTS OF STANDING COMMITTEES


MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 11, 86, and 206 and finds the same correctly enrolled.

Also MR. PRESIDENT:

     The Committee on Legislative Procedure respectfully reports that SB 112 was delivered to his Excellency, the Governor, for his approval at 3:20 p.m., February 27, 2004.

Respectfully submitted,
Arnold M. Brown, Chair

SIGNING OF BILLS


     The President publicly read the title to

     SB 11: FOR AN ACT ENTITLED, An Act to  rename the regents scholarship program the South Dakota opportunity scholarship program.

     SB 86: FOR AN ACT ENTITLED, An Act to  repeal certain outdated provisions concerning the property tax relief program.

     SB 206: FOR AN ACT ENTITLED, An Act to  increase the per student allocation in the state aid to education formula.

     HB 1062: FOR AN ACT ENTITLED, An Act to  revise the rule-making authority regarding the mowing of ditches on the state trunk highway system.

     And signed the same in the presence of the Senate.

     Sen. Bogue moved that when we adjourn today, we adjourn to convene at 10:00 a.m. on Monday, March 15, the 35th legislative day.

     Which motion prevailed.

MESSAGES FROM THE HOUSE


MR. PRESIDENT:

    I have the honor to return herewith SB 195 which has passed the House without change.

Respectfully,
Karen Gerdes, Chief Clerk

REPORTS OF STANDING COMMITTEES


MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 195 and finds the same correctly enrolled.

Also MR. PRESIDENT:

     The Committee on Legislative Procedure respectfully reports that SB 11, 86, and 206 were delivered to his Excellency, the Governor, for his approval at 4:35 p.m., February 27, 2004.

Respectfully submitted,
Arnold M. Brown, Chair

SIGNING OF BILLS


     The President publicly read the title to

     SB 195: FOR AN ACT ENTITLED, An Act to  appropriate money for the ordinary expenses of the legislative, judicial, and executive departments of the state, the expenses of state institutions, interest on the public debt, and for common schools.

     And signed the same in the presence of the Senate.

COMMUNICATIONS AND PETITIONS


February 27, 2004

Mr. President and Members of the Senate:

     I have the honor to inform you that I have approved Senate Bill 104, and the same has been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

February 27, 2004

Mr. President and Members of the Senate:

     I have the honor to inform you that I have approved Senate Bills 3, 22, 124, 144, 172, and 192, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

REPORTS OF STANDING COMMITTEES


MR. PRESIDENT:

     The Committee on Legislative Procedure respectfully reports that SB 195 was delivered to his Excellency, the Governor, for his approval at 5:10 p.m., February 27, 2004.

Respectfully submitted,
Arnold M. Brown, Chair

     Sen. Kleven moved that the Senate do now adjourn, which motion prevailed and at 5:12 p.m. the Senate adjourned.

Patricia Adam, Secretary