80th Legislative Session _ 2005

Committee: House Commerce
Tuesday, February 22, 2005

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Boomgarden
E    Bradford
P    Elliott
P    Faehn
P    Hunt
P    Krebs
P    Kroger
P    Pederson (Gordon)
P    Schafer
P    Street
P    Willadsen
P    Rounds, Vice-Chair
P    Sebert, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Vice-Chair Rounds.

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 17, 2005

Moved by:    Street
Second by:    Schafer
Action:    Prevailed by voice vote.

         SB 154: exempt certain entities from the lending license fees and surety bond requirements.

Presented by:    Representative Keri Weems

Testimony was heard on this bill on February 17, 2005, and the bill was amended at that meeting.


MOTION:     DO PASS SB 154 AS AMENDED

Moved by:    Schafer
Second by:    Boomgarden
Action:    Prevailed by roll call vote.(11-0-2-0)

Voting Yes:    Boomgarden, Elliott, Faehn, Hunt, Krebs, Kroger, Pederson (Gordon), Schafer, Street, Willadsen, Rounds

Excused:    Bradford, Sebert

MOTION:     TO AMEND TITLE OF SB 154

154jtb
     On page 1, line 2 of the Senate Commerce Committee engrossed bill, after " requirements " insert "and bank franchise taxes".

Moved by:    Pederson (Gordon)
Second by:    Hunt
Action:    Prevailed by voice vote.

MOTION:     PLACE SB 154 ON CONSENT CALENDAR

Moved by:    Pederson (Gordon)
Second by:    Willadsen
Action:    Prevailed by voice vote.

         SB 46: modify the requirements for closed block individual health benefit plans.

Presented by:    Randy Moses, Division of Insurance
Opponents:    Darla Pollman-Rogers, America's Health Insurance Plans
        Neal Chaplin, Golden Rule (Documents 1 & 2)

MOTION:     AMEND SB 46

46je
     On page 1, line 10 of the Senate engrossed bill, delete " ninety " and insert " seventy-five ".

     On page 3 , after line 2, insert:
"
     Section 4. This Act is effective on January 1, 2006.".

Moved by:    Pederson (Gordon)
Second by:    Kroger
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 46 AS AMENDED

Moved by:    Faehn
Second by:    Elliott
Action:    Failed by roll call vote.(4-8-1-0)

Voting Yes:    Elliott, Faehn, Schafer, Rounds

Voting No:    Boomgarden, Hunt, Krebs, Kroger, Pederson (Gordon), Street, Willadsen, Sebert

Excused:    Bradford

MOTION:     DEFER SB 46 TO THE 41ST LEGISLATIVE DAY

Moved by:    Pederson (Gordon)
Second by:    Hunt
Action:    Prevailed by roll call vote.(8-4-1-0)

Voting Yes:    Boomgarden, Hunt, Krebs, Kroger, Pederson (Gordon), Street, Willadsen, Sebert

Voting No:    Elliott, Faehn, Schafer, Rounds

Excused:    Bradford

Vice-Chair Rounds turned the gavel over to Chair Sebert.

         SB 51: revise certain provisions regarding medicare supplement policies.

Presented by:    Randy Moses, Division of Insurance

MOTION:     DO PASS SB 51

Moved by:    Boomgarden
Second by:    Schafer

Action:    Prevailed by roll call vote.(11-0-2-0)

Voting Yes:    Boomgarden, Elliott, Faehn, Hunt, Krebs, Kroger, Schafer, Street, Willadsen, Rounds, Sebert

Excused:    Bradford, Pederson (Gordon)

MOTION:     PLACE SB 51 ON CONSENT CALENDAR

Moved by:    Rounds
Second by:    Kroger
Action:    Prevailed by voice vote.

         SB 85: modify certain provisions relating to the charging of employers for the payment of unemployment insurance benefits.

Presented by:    Pam Roberts, Secretary, Department of Labor
Proponents:    Paul Aylward, SD AFL-CIO

MOTION:     DO PASS SB 85

Moved by:    Kroger
Second by:    Krebs
Action:    Prevailed by roll call vote.(11-0-2-0)

Voting Yes:    Boomgarden, Elliott, Faehn, Hunt, Krebs, Kroger, Schafer, Street, Willadsen, Rounds, Sebert

Excused:    Bradford, Pederson (Gordon)

MOTION:     PLACE SB 85 ON CONSENT CALENDAR

Moved by:    Rounds
Second by:    Willadsen
Action:    Prevailed by voice vote.

         SB 79: update certain provisions regarding the definition of impairment for workers' compensation purposes.

Presented by:    Representative Kathy Miles
Proponents:    Senator Ben Nesselhuf (Documents 3 & 4)
        Paul Aylward, SD AFL-CIO
        Roger Tellinghuisen, SD Trial Lawyers Association (Documents 5 & 6)
        Jim Hood, SD Chiropractor's Assn.
Opponents:    James Marsh, Department of Labor
        Randy Moses, Division of Insurance
        Bob Riter Jr., Nat'l Federation of Independent Business

MOTION:     DO PASS SB 79

Moved by:    Elliott
Second by:    Street
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 79 TO THE 41ST LEGISLATIVE DAY

Moved by:    Rounds
Second by:    Willadsen
Action:    Prevailed by roll call vote.(7-4-2-0)

Voting Yes:    Boomgarden, Hunt, Krebs, Schafer, Willadsen, Rounds, Sebert

Voting No:    Elliott, Faehn, Kroger, Street

Excused:    Bradford, Pederson (Gordon)

         SB 109: revise certain provisions relating to the modification of credit card agreements.

Presented by:    Representative Roger Hunt
Proponents:    Brent Wilbur, SD Bankers Assn.

MOTION:     AMEND SB 109

109ja
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 54-11-10 be amended to read as follows:

     54-11-10.   Upon written notice, a credit card issuer may change the terms of any credit card agreement, if such right of amendment has been reserved , including finance charges, fees and other costs, effective as to existing balances, so long as the card holder does not, within twenty-five days of the effective date of the change, furnish written notice to the issuer that he does not agree to abide by such changes. Upon receipt of such written notice by the issuer, the card holder shall have the remainder of the time under the existing terms in which to pay all sums owed to the issuer or creditor. Use of the card after the effective date of the change of terms, including a change in interest rates, is deemed to be an acceptance of the new terms, even though the twenty-five days have not expired . However, the following changes to the credit card agreement, effective as to existing balances, do not become binding on the parties if the card holder, within twenty-five days of the effective date of the change, furnishes written notice to the issuer, at the address designated by the issuer, that the card holder does not agree to abide by such changes:

             (1)    Modifying the circumstances under which a finance charge will be imposed;
             (2)    Altering the method used to calculate finance charges;
             (3)    Increasing finance charges, fees, and other costs; or
             (4)    Increasing the required minimum payment.

     Any other change to the credit card agreement modifying the manner in which the issuer and card holder resolve disputes arising out of their relationship do not become binding on the parties if the card holder, within twenty-five days of the effective date of the change, furnishes written notice to the issuer, at the address designated by the issuer, that the card holder does not agree to abide by such changes.

     Use of the card after the effective date of the change of terms is deemed to be an acceptance of the new terms, even if the twenty-five-day period has not expired. Unless otherwise required by 12 C.F.R. §   226, in effect on January 1, 2005, a written change of terms notice is not required if the proposed change in terms has been communicated by the issuer to the card holder and the card holder agrees.

     Section 2. That chapter 54-11 be amended by adding thereto a NEW SECTION to read as follows:

     In lieu of the card holder's right to reject certain changes in terms within twenty-five days pursuant to section 1 of this Act, the issuer may require the card holder to provide written notice of such rejection not less than five days prior to the effective date of the change if the issuer has sent notice of the proposed change in terms under this Act to the card holder not less than thirty days prior to the effective date of the change. The issuer may provide the card holder an alternative means by which to communicate the card holder's rejection of the change in terms, so long as the alternative means is not more burdensome to the card holder."

Moved by:    Hunt
Second by:    Rounds
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 109 AS AMENDED


Moved by:    Hunt
Second by:    Rounds
Action:    Prevailed by roll call vote.(10-0-3-0)

Voting Yes:    Boomgarden, Elliott, Faehn, Hunt, Kroger, Schafer, Street, Willadsen, Rounds, Sebert

Excused:    Bradford, Krebs, Pederson (Gordon)

MOTION:     ADJOURN

Moved by:    Hunt
Second by:    Schafer
Action:    Prevailed by voice vote.

Cindy Tryon

____________________________

Committee Secretary
Lou Sebert, Chair

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