82nd Legislative Session _ 2007

Committee: Senate State Affairs
Friday, February 02, 2007

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Abdallah
P    Hanson (Gary)
P    Heidepriem
P    Knudson
P    McCracken
P    Nesselhuf
P    Olson (Ed)
P    Gray, Vice-Chair
P    Dempster, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Tom Dempster, Chair.

MOTION:     TO APPROVE THE MINUTES OF WEDNESDAY, JANUARY 31, 2007

Moved by:    McCracken
Second by:    Hanson (Gary)
Action:    Prevailed by voice vote.

 MOTION:     CONFIRM APPOINTMENT OF MAJOR GENERAL MICHAEL A. GORMAN , PENNINGTON COUNTY, RAPID CITY, SOUTH DAKOTA, TO THE POSITION OF SECRETARY OF THE DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

Moved by:    Abdallah
Second by:    Knudson
Action:    Prevailed by roll call vote.(9-0-0-0)

Voting Yes:    Abdallah, Hanson (Gary), Heidepriem, Knudson, McCracken, Nesselhuf, Olson (Ed),

Gray, Dempster

          SB 25: revise certain requirements regarding the ability of the Public Utilities Commission to regulate the sale or other disposition of the property, plant, business, or stock of electric or gas public utilities.

Presented by:    Dustin Johnson, Public Utilities Commission
        Gary Hanson, Public Utilities Commission
        Steve Kolbeck, Public Utilities Commission
Proponents:    Dave Gerdes, South Dakota Electric Utility Companies

MOTION:     AMEND SB 25

25oa
     On page 1, line 8 of the printed bill, after " its " insert " operating ".

     On page 1 , line 11, remove the overstrikes from " public utility operating in this state " .

     On page 1 , line 11, delete " person " .

     On page 1 , line 14, overstrike " actual consideration " and insert " fair market value ".

     On page 1 , line 15, delete " two hundred thousand million " and insert " two hundred thousand ten million ".

     On page 2 , line 2, after " acquire or " insert " gain ".

     On page 2 , line 2, delete " more than ten percent of the " .

     On page 2 , line 3, delete " total capital stock " .

     On page 2 , line 4, after " . " insert " As used in this section, the term, control, means the power to direct or cause the direction of the management and policies of the public utility, whether through the ownership of voting securities, by contract, or otherwise. ".

Moved by:    Knudson
Second by:    McCracken
Action:    Was not acted on.

 MOTION:     SUBSTITUTE MOTION AMEND SB 25

25tb
     On page 1 of the printed bill, delete lines 6 to 15 , inclusive, and insert:

"      49-34A-35.   No public utility shall sell, lease or otherwise dispose of its property or business constituting an operating unit or system in this state to another public utility or purchase the property or business constituting an operating unit or system in this state to another public utility or merge or consolidate with another public utility operating in this state, without first being authorized to do so by the Public Utilities Commission; provided, that in the event such sale, lease or other disposition of the property or business of one public utility to another public utility does not involve a sale, lease or disposition wherein the actual consideration exceeds two hundred thousand dollars, such sale, lease or disposition shall not be subject to the provisions of this section No public utility, without first being authorized to do so by the commission, may:

             (1)    Sell, lease, or otherwise dispose of its property or business constituting an operating unit or system in this state to another person;
             (2)    Sell, lease, or otherwise dispose of its operating property or plant used to provide gas or electric service to its customers in this state to another person;
             (3)    Purchase the property or business constituting an operating unit or system in this state of another public utility; or
             (4)    Merge or consolidate with another public utility operating in this state.
     However, if the sale, lease, merger, consolidation, or other disposition of the property or business of one public utility to another person, as provided in subdivisions (1) to (4), inclusive, does not involve a sale, lease, merger, consolidation, or disposition wherein the fair market value exceeds ten million dollars, the sale, lease, merger, consolidation, or disposition is not subject to the restrictions of this section.
     No person may acquire or gain control either directly or indirectly of any public utility doing business in this state that has a fair market value exceeding ten million dollars without the commission's prior authorization. As used in this section, the term, control, means the right to direct or cause the direction of the management and policies of the public utility, whether through the ownership of voting securities, by contract, or otherwise . ".

On page 2 , delete lines 1 to 4 , inclusive.


Moved by:    Olson (Ed)
Second by:    Knudson
Action:    Prevailed by voice vote.

 MOTION:     DO PASS SB 25 AS AMENDED

Moved by:    Knudson

Second by:    McCracken
Action:    Prevailed by roll call vote.(9-0-0-0)

Voting Yes:    Abdallah, Hanson (Gary), Heidepriem, Knudson, McCracken, Nesselhuf, Olson (Ed), Gray, Dempster

          SJR 12: To propose a constitutional amendment to repeal the right to work provisions of the State Constitution.

Presented by:    Senator Gil Koetzle (Document #1)
Proponents:    Mark Anderson, South Dakota State Federation of Labor AFL-CIO
        Rachel Hendrickson, South Dakota Education Association
        Joe Kraljic, Brotherhood of Maintenance of Way
        Paul Aylward, South Dakota AFL-CIO
Opponents:    Bob Riter Jr., National Federation of Independent Business
        David Owen, South Dakota Chamber of Commerce & Industry
        Shawn Lyons, South Dakota Retailers Association
        Marcia Hultman, Department of Labor
        Deb Mortenson, Association of General Contractors
        Gary Johnson, AGE Corporation
        Anne Hajek, self, Sioux Falls

MOTION:     DO PASS SJR 12

Moved by:    Nesselhuf
Second by:    Hanson (Gary)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SJR 12 TO THE 41ST LEGISLATIVE DAY

Moved by:    Gray
Second by:    McCracken
Action:    Prevailed by roll call vote.(7-2-0-0)

Voting Yes:    Abdallah, Heidepriem, Knudson, McCracken, Olson (Ed), Gray, Dempster

Voting No:    Hanson (Gary), Nesselhuf

         SB 124: repeal certain provisions relating to the right to work upon the contingency of repealing the right to work provisions of the Constitution.

Presented by:    Senator Gil Koetzle
Proponents:    Mark Anderson, South Dakota State Federation of Labor AFL-CIO
        Rachel Hendrickson, South Dakota Education Association
        Joe Kraljic, Brotherhood of Maintenance of Way
        Paul Aylward, South Dakota AFL-CIO
Opponents:    Bob Riter Jr., National Federation of Independent Business
        David Owen, South Dakota Chamber of Commerce & Industry
        Shawn Lyons, South Dakota Retailers Association
        Marcia Hultman, Department of Labor
        Deb Mortenson, Association of General Contractors
        Gary Johnson, AGE Corporation
        Anne Hajek, self, Sioux Falls

MOTION:     DEFER SB 124 TO THE 41ST LEGISLATIVE DAY

Moved by:    Knudson
Second by:    Nesselhuf
Action:    Prevailed by roll call vote.(7-2-0-0)

Voting Yes:    Abdallah, Heidepriem, Knudson, McCracken, Olson (Ed), Gray, Dempster

Voting No:    Hanson (Gary), Nesselhuf

         SB 176: establish the South Dakota small business equity infusion subfund and to provide for its funding and disbursement.

Presented by:    Senator Tom Katus
Proponents:    Bat Pourier, self, Pine Ridge (Document #2, #3)
        Patty Pourier, self, Pine Ridge
        Lucy Belson, self, Rapid City (Document #4)

The Chair deferred SB 176 until another day.

         SB 190: provide for the establishment of special development districts and to authorize the issuance of certain restricted alcoholic beverage licenses in such districts.

Presented by:    Senator Royal "Mac" McCracken
Proponents:    Yvonne Taylor, South Dakota Municipal League
        Jim Shaw, mayor, Rapid City
        Michael Bartley, City of Brookings
        Dennis Eisnach, City of Pierre
        Steve Willard, South Dakota Innkeepers Association
        Harry Christianson, Midland Atlantic Development Company
        Dennis Duncan, Development Group of South Dakota, LLC
        David Owen, South Dakota Chamber of Commerce & Industry
Opponents:    Stan George, self, Rapid City
        Steve Brinkman, self, Mitchell

The Chair deferred SB 190 until another day.

         SB 161: repeal the death penalty and commute certain death sentences to life imprisonment.

Presented by:    Senator Sandy Jerstad
Proponents:    Anne Thompson, self, Sioux Falls
        Sharon Gray, self, Vermillion
        Stephen Snyder, self, Wentworth (Document #5)
Opponents:    Ed Schaeffer, self, Black Hawk
        Peggy Schaeffer, self, Black Hawk

The Chair deferred SB 161 until another day.

MOTION:     ADJOURN

Moved by:    McCracken
Second by:    Nesselhuf
Action:    Prevailed by voice vote.

Nancy Bloom

____________________________

Committee Secretary
Thomas A. Dempster, Chair