81st Legislative Session _ 2006

Committee: House Commerce
Tuesday, January 31, 2006

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Boomgarden
P    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 Chair Sebert.

MOTION:     TO APPROVE THE MINUTES OF JANUARY 26, 2006

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

         HB 1183: provide health insurance coverage for contraceptive drugs and devices.

Previous testimony was heard on this bill at the January 26, 2006, committee meeting.

Presented by:    Representative Bill Thompson
Proponents:    Charon Astetoyer, self, Lake Andes

Opponents:    Randy Moses, Division of Insurance
        Mike Shaw, American Family Insurance Group
        Dennis Duncan, DakotaCare
        Darla Pollman-Rogers, America's Health Insurance Plans & Wellmark
        Dave Hewitt, SDAHO
        Bob Riter Jr., Nat'l Federation of Independent Business
        Deb Fischer Clemens, Avera Health
        Cindy Flakoll, Concerned Women For America

MOTION:     DEFER HB 1183 TO THE 36TH LEGISLATIVE DAY

Moved by:    Rounds
Second by:    Willadsen
Action:    Prevailed by roll call vote.(9-4-0-0)

Voting Yes:    Boomgarden, Faehn, Hunt, Krebs, Pederson (Gordon), Schafer, Willadsen, Rounds, Sebert

Voting No:    Bradford, Elliott, Kroger, Street

         HB 1125: provide certain insurance and medicaid coverage for hyperbaric oxygen therapy and related services.

Presented by:    Representative Gerald Lange (handout #1)
Opponents:    Larry Iverson, DSS
        Mike Shaw, American Family Insurance Group
        Randy Moses, Division of Insurance
        Dennis Duncan, DakotaCare
        Dave Hewitt, SDAHO
        Darla Pollman-Rogers, America's Health Insurance Plans & Wellmark
        Margo Northrup, National Federation of Independent Business

MOTION:     DEFER HB 1125 TO THE 36TH LEGISLATIVE DAY

Moved by:    Rounds
Second by:    Hunt
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS HB 1125

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

Voting Yes:    Bradford, Elliott, Kroger, Street

Voting No:    Boomgarden, Faehn, Hunt, Pederson (Gordon), Schafer, Willadsen, Rounds, Sebert

Excused:    Krebs

MOTION:     DEFER HB 1125 TO THE 36TH LEGISLATIVE DAY

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

Voting Yes:    Boomgarden, Faehn, Hunt, Pederson (Gordon), Schafer, Willadsen, Rounds, Sebert

Voting No:    Bradford, Elliott, Kroger, Street

Excused:    Krebs

         HB 1177: limit the amount in the Employer's Investment in South Dakota's Future Fund.

Presented by:    Representative Deb Peters (handouts #2, 3, & 4)
Proponents:    Pam Roberts, Secretary, Department of Labor
        David Owen, SD Chamber of Commerce & Industry
        Senator William Earley
Opponents:    Jim Keyes, Associated General Contractors of SD
        Greg Branaugh, Self
        Dawn Morris, Pierre, self (handout #5)

MOTION:     AMEND HB 1177

1177oa
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section 1. That § 61-5-24.1 be amended to read as follows:

     61-5-24.1.   Employers required by this title to pay contributions, except employers that pursuant to chapter 61-5A reimburse the unemployment compensation trust fund for benefits paid in lieu of contributions, shall also pay an employer's investment in South Dakota's future fee, hereinafter "investment fee," on wages as defined by this title. The fee rate for employers not eligible for experience rating, as defined in § 61-5-20.2, shall be seventy hundredths percent through calendar year 2006 and fifty-five hundredths percent on and after January 1, 2007 . If an employer is eligible for experience rating, his reserve ratio shall be determined pursuant to § 61-5-18.14 and his investment fee rate shall be the rate appearing in column "A" on the same line on which his reserve ratio appears in column "B" of the following rate schedule schedules .

     From January 1, 1993, to December 31, 2006, inclusive:
Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.70%        Less than 0.80%  
0.60%       0.80% and Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

     From January 1, 2007, to December 31, 2007, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.60%        Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

     From January 1, 2008, to December 31, 2008, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.58%        Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

     From January 1, 2009, to December 31, 2009, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.56%        Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

     Beginning January 1, 2010:
Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.55%        Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

     The terms and conditions of this title which apply to the payment and collection of contributions also apply to the payment and collection of the investment fee. Proceeds from the investment fee shall be deposited in the clearing account of the unemployment compensation fund for clearance only and may not become part of the fund. After clearance, the money derived from such payments, less refunds made pursuant to the provisions of this title, shall be deposited in the employer's investment in South Dakota's future special revenue fund as provided for in § 61-5-24.2. Investment fee payments may not be credited to the employer's experience rating account and may not be deducted in whole or in part by any employer from the wages of individuals in its employ.

     The investment fee rate may not be increased over the applicable 1987 investment fee rate for any employer with a positive balance in his experience rating account on the computation date, as established in rules promulgated by the secretary of labor pursuant to chapter 1-26, for the current year and the year preceding the current year.

     The investment rates provided in this section apply to and are retroactive to taxable wages paid on and after January 1, 1993. "

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

MOTION:     DO PASS HB 1177 AS AMENDED

Moved by:    Willadsen

Second by:    Pederson (Gordon)
Action:    Prevailed by roll call vote.(12-0-1-0)

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

Excused:    Bradford

         HB 1184: provide that health care providers and institutions need not participate in certain health care services.

Presented by:    Representative Don Van Etten
Proponents:    Glenn Ridder, MD, self, Sioux Falls testified via telephone
        Deb Fischer Clemens, Avera Health
        Linda Schauer, Concerned Women For America
        Travis Benson, Catholic Diocese of Sioux Falls, Sioux Falls
Opponents:    Jennifer Ring, ACLU of The Dakotas
        Charon Astetoyer, self, Lake Andes

The Chair deferred HB 1184 until Thursday, February 2, 2006.

MOTION:     ADJOURN

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

Cindy Tryon

____________________________

Committee Secretary
Lou Sebert, Chair

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