81st Legislative Session _ 2006

Committee: Senate Commerce
Tuesday, January 24, 2006

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Abdallah
P    Kelly
P    Koetzle
P    Schoenbeck
P    Sutton (Dan)
P    Broderick, Vice-Chair
P    McCracken, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator McCracken, Chair.

MOTION:     TO APPROVE THE MINUTES OF JANUARY 19, 2006.

Moved by:    Broderick
Second by:    Schoenbeck
Action:    Prevailed by voice vote.

         SB 98: revise certain provisions regarding age requirements for the consumption of alcoholic beverages.

Presented by:    Senator Garry Moore

Senator Moore requested that the bill be tabled at this time.

MOTION:     TO TABLE SB 98

Moved by:    Schoenbeck
Second by:    Sutton (Dan)
Action:    Prevailed by roll call vote.(6-0-1-0)


Voting Yes:    Abdallah, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

Excused:    Kelly

MOTION:     TO APPROVE REQUEST FOR INTRODUCING GOVERNORS BILL: "AN ACT TO MODIFY THE RISK POOL REIMBURSEMENT METHOD FOR HEALTH CARE PROVIDERS."

Moved by:    Broderick
Second by:    Schoenbeck
Action:    Prevailed by voice vote.

MOTION:     TO APPROVE REQUEST FOR INTRODUCING GOVERNORS BILL: "AN ACT TO AUTHORIZE THE RISK POOL BOARD TO ALLOW ADDITIONAL ENROLLEES INTO THE RISK POOL UNDER CERTAIN CIRCUMSTANCES."

Moved by:    Koetzle
Second by:    Broderick
Action:    Prevailed by voice vote.

         SB 76: allow an applicant for a responsible broker's license to complete certain required education requirements after licensure as a responsible broker.

Presented by:    Senator Dick Kelly

MOTION:     DEFER SB 76 TO THE 36TH LEGISLATIVE DAY

Moved by:    Kelly
Second by:    Schoenbeck
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

         SB 87: require a broker to obtain written consent to advertise or market property on behalf of an owner.

Presented by:    Dean Krogman, SD Assn. Of Realtors
Proponents:    Dee Jones Noordermeer, SD Real Estate Commission

MOTION:     DO PASS SB 87
Moved by:    Kelly
Second by:    Abdallah
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

MOTION:     PLACE SB 87 ON CONSENT CALENDAR

Moved by:    Kelly
Second by:    Abdallah
Action:    Prevailed by voice vote.

         SB 74: repeal the Game, Fish and Parks Commission exemption relating to small business impact statements.

Presented by:    Senator Eric Bogue
Proponents:    Jerry Wheeler, SD Retailers Assn.
        Doug Hansen, Department of Game, Fish and Parks

Mr. Wheeler passed a copy of a pamphlet to be shared among committee members entitled, "Small Business Regulatory Flexibility Model Legislation Initiative, September 2005" (Handout A). He also distributed: an "Example from the Department of Revenue & Regulation, Small Business Impact Statement Business Tax Rules" (Handout B); and an "Example from the Department of Education, Form 14, Small Business Impact Statement Form" (Handout C).

MOTION:     DO PASS SB 74

Moved by:    Schoenbeck
Second by:    Abdallah
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

MOTION:     PLACE SB 74 ON CONSENT CALENDAR

Moved by:    Schoenbeck
Second by:    Kelly
Action:    Prevailed by voice vote.

         SB 75: rescind the repeal of certain provisions relating to small business impact statements.
Presented by:    Senator Eric Bogue
Proponents:    Bob Riter Jr., Nat'l Federation of Independent Business

MOTION:     DO PASS SB 75

Moved by:    Schoenbeck
Second by:    Abdallah
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Abdallah, Kelly, Koetzle, Schoenbeck, Sutton (Dan), Broderick, McCracken

MOTION:     PLACE SB 75 ON CONSENT CALENDAR

Moved by:    Schoenbeck
Second by:    Abdallah
Action:    Prevailed by voice vote.

         SB 18: revise certain provisions regarding the licensing of home inspectors. This bill was deferred from January 17, 2006.

Presented by:    Senator Dick Kelly
Proponents:    Dee Jones Noordermeer, SD Real Estate Commission

MOTION:     AMEND SB 18

18ja
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section 1. That § 36-21C-1 be amended to read as follows:

     36-21C-1.   Terms used in this chapter mean:

             (1)      "Client," any person who engages, or seeks to engage, the services of a home inspector for the purpose of obtaining inspection of and written report upon the condition of a residential building;
             (2)      "Commission," the South Dakota Real Estate Commission;
             (3)      "Home inspector," any person registered or licensed as a home inspector pursuant to the provisions of this chapter;
             (4)      "Home inspection," an inspection and written evaluation of all the following components of a residential building: heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, and exterior and interior components;
             (5)      "Licensee," any person holding a license or registration issued pursuant to this chapter;
             (6)    "Inactive licensee," any licensee who has returned his or her license or registration to the commission and has requested the commission to place the license on inactive status, or any new licensee who has failed to designate a place of business;
             (7)     "Residential building," a structure consisting of not more than four family dwelling units.

     Section 2. That § 36-21C-4 be amended to read as follows:

     36-21C-4.   An applicant for a license as a home inspector shall file a written application provided by the commission showing that the applicant meets the following requirements:

             (1)      Good moral character;
             (2)      Successful completion of high school or high school equivalency Eighteen years of age ;
             (3)      Employment as a registered home inspector for no less than one year and performance of not less than one hundred home inspections for compensation; and
             (4)      Successful completion of a licensing examination approved by the commission ; and
             (5)    A citizen of the United States of America or a resident of South Dakota .

     Section 3. That § 36-21C-5 be amended to read as follows:

     36-21C-5.   An applicant for registration as a home inspector shall file a written application provided by the commission showing that the applicant meets the following requirements:

             (1)      Good moral character;
             (2)      Successful completion of high school or high school equivalency Eighteen years of age ;
             (3)      Successful completion of an approved course of study of not less than forty hours, as prescribed by the commission in rules promulgated pursuant to chapter 1-26; and
             (4)      Successful completion of a registration examination approved by the commission ; and
             (5)    A citizen of the United States of America or a resident of South Dakota .

     Section 4. That § 36-21C-9 be repealed.

     36-21C-9.   During the first three hundred sixty-five days after January 1, 2001, the commission shall issue to any person, upon application, a home inspector license, if the applicant meets the requirements of subdivisions 36-21C-4(1), (2), and (4) and has been engaged in the practice of home inspections for compensation for not less than one year prior to January 1, 2001, and has performed not less than one hundred home inspections for compensation.

     Section 5. That § 36-21C-13 be amended to read as follows:

     36-21C-13.   The commission may refuse to grant or may suspend or revoke a home inspector license or registration upon proof, to the satisfaction of the commission, that the holder licensee has:

             (1)      Disclosed any information concerning the results of the home inspection without the approval of a client or the client's representative unless disclosed by court order ;
             (2)      Accepted compensation from more than one interested party for the same service without the written consent of all interested parties;
             (3)      Accepted commissions or allowances, directly or indirectly, from other parties dealing with the holder's licensee's client in connection with work for which the holder licensee is responsible; or
             (4)      Failed to disclose promptly to a client information about any business interest of the holder licensee which may affect the client in connection with the home inspection ;
             (5)    Been convicted or pled guilty or nolo contendere of a misdemeanor involving moral turpitude or of a felony;
             (6)    Had a professional or occupational license suspended or revoked in this or any other state;
             (7)    Made a material false statement in the licensee's application for a license or registration or in any information furnished to the commission;
             (8)    Made any substantial and willful misrepresentation regarding a home inspection which is injurious to any person;
             (9)    Made any false promise or advertisement of a character such as to influence, persuade, or induce a party to a transaction to the party's injury or damage;
             (10)    Failed or refused upon demand to produce any document, book, or record in the licensee's possession or under the licensee's control, concerning a home inspection under investigation by the commission;
             (11)    Violated any federal or state fair housing requirement;
             (12)    Failed to obtain a written contract prior to performing a home inspection;
             (13)    Paid compensation or commission in connection with a home inspection to any person who is not licensed or registered under this chapter or paid compensation or commission to an inactive licensee;
             (14)    Performed a home inspection and received compensation thereof while license or registration was inactive;
             (15)    Used the licensee's position to gain undue influence over a client, using the licensee's position to coerce a client, or using duress on a client; or
             (16)    Violated any provisions of this chapter or any rule promulgated by the commission under the provisions of this chapter .

     Section 6. That chapter 36-21C be amended by adding thereto a NEW SECTION to read as follows:

     The commission may deny an application for any one of the following reasons:
             (1)    The applicant has written an insufficient funds check for the application fee;
             (2)    The applicant has been convicted of a felony or of a misdemeanor involving moral turpitude;
             (3)    The applicant has had a professional or occupational license disciplined in this or any other state;
             (4)    The applicant has failed to satisfy the requirements as provided by this chapter;
             (5)    The applicant has not met education requirements;
             (6)    The applicant has failed the prelicense school examination;
             (7)    The applicant made deliberate misstatements, deliberate omissions, misrepresentations, or untruths in the application; or
             (8)    The applicant has a current and unpaid judgment filed against the applicant.

     Section 7. That chapter 36-21C be amended by adding thereto a NEW SECTION to read as follows:

     The licensee shall register the licensee's fixed place of business with the commission. In case of removal from the registered address, the licensee shall apply, on forms furnished by the commission, to the commission, before the removal or within ten days after removal. The licensee shall designate the new location of the office of the fixed place of business or request inactive status. The commission shall immediately register the new location for the unexpired period or place the licensee on inactive status.

     Section 8. That chapter 36-21C be amended by adding thereto a NEW SECTION to read as follows:

     A licensee shall preserve for four years all contracts, home inspection reports, and other records relating to any home inspection.".

Moved by:    Kelly
Second by:    Broderick
Action:    Prevailed by voice vote.

MOTION:     AMEND SB 18

18jb
     In the previously adopted amendment (18ja), in Section 2, delete " (5) A citizen of the United States of America or a resident of South Dakota " and insert " (5) Legal residency maintained in the United States ".

     In the previously adopted amendment (18ja), in Section 3, delete " (5) A citizen of the United States of America or a resident of South Dakota " and insert " (5) Legal residency maintained in the United States ".

Moved by:    Kelly
Second by:    Broderick
Action:    Prevailed by voice vote.


MOTION:     TO TABLE SB 18

Moved by:    Schoenbeck
Second by:    Abdallah
Action:    Prevailed by roll call vote.(4-3-0-0)

Voting Yes:    Abdallah, Koetzle, Schoenbeck, Sutton (Dan)

Voting No:    Kelly, Broderick, McCracken

MOTION:     ADJOURN

Moved by:    Abdallah
Second by:    Koetzle
Action:    Prevailed by voice vote.

Grace Curtis

____________________________

Committee Secretary
Royal "Mac" McCracken, Chair

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