82nd Legislative Session _ 2007

Committee: House Local Government
Thursday, February 15, 2007

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Gassman
P    Halverson
P    Howie, Vice-Chair
P    Kirkeby
P    Koistinen
P    Lucas
P    Nelson
P    Olson (Betty)
P    Olson (Russell)
P    Pitts
P    Rounds
P    Sigdestad
P    Hanks, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Hanks

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 13, 2007

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

 MOTION:     REMOVE HB 1303 FROM THE TABLE

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

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Lucas, Olson (Betty), Olson (Russell), Pitts, Rounds, Hanks

Voting No:    Koistinen, Nelson, Sigdestad

 MOTION:     CONSIDERATION OF MATTERS NOT POSTED (HB 1303)

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

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Lucas, Olson (Betty), Olson (Russell), Pitts, Rounds, Hanks

Voting No:    Koistinen, Nelson, Sigdestad

 MOTION:     RECONSIDER HB 1133

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

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Lucas, Olson (Russell), Pitts, Rounds, Hanks

Voting No:    Koistinen, Nelson, Olson (Betty), Sigdestad

 MOTION:     CONSIDERATION OF MATTERS NOT POSTED (HB1133)

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

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Lucas, Olson (Russell), Pitts, Rounds, Hanks

Voting No:    Koistinen, Nelson, Olson (Betty), Sigdestad

          HB 1264: provide counties the authority to acquire, construct, maintain, and operate sewer utility systems.

Presented by:    Representative Larry Rhoden

MOTION:     TO TABLE HB 1264

Moved by:    Rounds
Second by:    Olson (Betty)
Action:    Prevailed by roll call vote.(13-0-0-0)

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Koistinen, Lucas, Nelson, Olson (Betty), Olson (Russell), Pitts, Rounds, Sigdestad, Hanks

         HB 1125: revise certain provisions concerning the adoption of municipal sewer utility charges.

Presented by:    Representative Paul Nelson
Proponents:    Yvonne Taylor, SD Municipal League

MOTION:     DO PASS HB 1125

Moved by:    Rounds
Second by:    Lucas
Action:    Prevailed by roll call vote.(13-0-0-0)

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Koistinen, Lucas, Nelson, Olson (Betty), Olson (Russell), Pitts, Rounds, Sigdestad, Hanks

MOTION:     PLACE HB 1125 ON CONSENT CALENDAR

Moved by:    Kirkeby
Second by:    Halverson
Action:    Prevailed by voice vote.

         HB 1232: provide for the establishment of special development districts and to authorize the issuance of certain restricted alcoholic beverage licenses in such districts.

Presented by:    Representative Joel Dykstra
Proponents:    Yvonne Taylor, SD Municipal League
        David Hanna, Rapid City
        Harry Christianson, Midland Atlantic Development Company
        David Owen, SD Chamber of Commerce & Industry
        Michael Kenyon, Department of Revenue and Regulation
        Scott Munsterman, self, Brookings
        John Bradsky, Rapid City
        Dennis Duncan, Development Group of South Dakota, LLC
        Dean Krogman, Lloyd Company
Opponents:    Doug Borns, Watertown
        Stan George, self, Rapid City
        Michael Derby, Rapid City
        Tim Dougherty, Licensed Beverage Dealers of SD (Handout #1)

MOTION:     AMEND HB 1232

1232fb
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section 1. That chapter 35-4 be amended by adding thereto a NEW SECTION to read as follows:

     Any municipality may issue additional licenses pursuant to subdivision 35-4-2(4) in excess of the maximum number of on-sale licenses permitted by §  35-4-11, subject to the following conditions:

             (1)    The licensee has facilities for the preparation and serving of food for consumption at the location where the license is held;
             (2)    Not less than fifty percent of the gross receipts generated by the business at the location where the license is held is from the sale of food or other goods and services, other than alcoholic beverages.

     Section 2. That chapter 35-4 be amended by adding thereto a NEW SECTION to read as follows:

     The fee charged by the municipality for the alcoholic beverage licenses issued pursuant to section 1 of this Act is not less than one dollar and fifty cents for each person residing within the municipality as measured by the last preceding federal census or twelve hundred dollars, whichever amount is greater. The municipality may not increase or decrease this fee until all of the disbursements required by section 3 of this Act have been made.

     Section 3. The license fee collected pursuant to section 2 of this Act, or other revenues as determined by the municipality, shall be placed into a special fund to be known as the market reimbursement fund. Before December thirty-first of each year, the municipality shall distribute the balance of the market reimbursement fund equally to each holder of a license issued pursuant to subdivision 35-2-4(4) in the municipality as of January 1, 2007.

     The disbursement from the fund shall continue until such time that each holder of a license as of January 1, 2007, has received the difference between the market value of the license as of January 1, 2007, and the fee imposed by section 2 of this Act. Full disbursement of this amount shall be made by each municipality issuing licenses pursuant to this Act within five years of the first

issuance of a license pursuant to section 1 of this Act. The market value of a license as of January 1, 2007, shall be determined by averaging the sales price of the last three licenses sold within the municipality prior to January 1, 2007, which did not include the sale of real or personal property. If there have not been three sales which did not include the sale of real or personal property and which were not too remote, the market value as of January 1, 2007, shall be set by appraisal performed by an appraiser licensed pursuant to chapter 36-21A."


Moved by:    Pitts
Second by:    Halvorson
Action:    Prevailed by voice vote.

 MOTION:     AMEND THE AMENDMENT

1232fd
     On the previously adopted amendment (1232fb) in section 1, subdivision (2), delete "or other goods and services".

Moved by:    Lucas
Second by:    Gassman
Action:    Failed by roll call vote.(6-7-0-0)

Voting Yes:    Gassman, Koistinen, Lucas, Nelson, Olson (Betty), Sigdestad

Voting No:    Halverson, Howie, Kirkeby, Olson (Russell), Pitts, Rounds, Hanks

 MOTION:     AMEND THE AMENDMENT

1232fe
     On the previous amendment (1232fb), in section 2 delete "one dollar and fifty cents" and insert "five dollars".

     On the previous amendment (1232fb), in section 2 delete "twelve hundred" and insert "one hundred thousand".

     On the previous amendment (1232fb), in section 2 delete "greater" and insert "less".

     On the previous amendment (1232fb), in section 3, the second paragraph, on line 4, delete "five" and insert "ten".

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

 MOTION:     DO PASS HB 1232 AS AMENDED

Moved by:    Kirkeby
Second by:    Pitts
Action:    Was not acted on.

 MOTION:     SUBSTITUTE MOTION TO TABLE HB 1232

Moved by:    Rounds
Second by:    Sigdestad
Action:    Prevailed by roll call vote.(8-5-0-0)

Voting Yes:    Gassman, Koistinen, Lucas, Nelson, Olson (Betty), Olson (Russell), Rounds, Sigdestad

Voting No:    Halverson, Howie, Kirkeby, Pitts, Hanks

          HB 1126: revise certain provisions concerning municipal sewer service.

Presented by:    Yvonne Taylor, SD Municipal League

MOTION:     DO PASS HB 1126

Moved by:    Kirkeby
Second by:    Olson (Betty)
Action:    Prevailed by roll call vote.(13-0-0-0)

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Koistinen, Lucas, Nelson, Olson (Betty), Olson (Russell), Pitts, Rounds, Sigdestad, Hanks

Gavel passed to Vice Chair Howie

         HB 1303: provide for issuance of certain restricted on-sale malt beverage and wine licenses.

         Previously heard on February 13, 2007

Proponents:    Representative Alan Hanks
Opponents:    Jeremiah Murphy, Republic Beverage
        Tim Dougherty, Licensed Beverage Dealers of SD

MOTION:     AMEND HB 1303

1303fa
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 35-2-1 be amended to read as follows:
     35-2-1.   Applications for licenses Any application for a license provided for by this title shall be made on forms a form prescribed by the secretary of revenue of regulation , and shall be verified by the oath of the applicant, if an individual, and, if a corporation, by an officer of such corporation. Such The application must shall contain such information as the secretary requires , and must show that the applicant is eligible for the license for which application is made.

     Section 2. That § 35-4-13.1 be repealed.
     35-4-13.1.   Notwithstanding the repeal provisions of chapter 211 of the Session Laws of 1971, any club which has before July 1, 1971, been issued a license under the provisions of former subdivision 35-4-2(13) may continue as an on-sale licensee, upon its continued annual application at such license fee as the municipality may establish. It shall continue to buy its alcoholic beverages from the municipal off-sale establishment in the municipality where it is located and shall be subject to all provisions of this title relating to the operation of an on-sale licensee. The municipality being authorized to sell is not deemed a wholesaler and may sell it at an agreed price, but in no event less than ten percent over and above its actual costs, including costs of transportation. "


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

 MOTION:     DEFER HB 1303 TO THE 41ST LEGISLATIVE DAY

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

Voting Yes:    Gassman, Halverson, Howie, Koistinen, Lucas, Nelson, Olson (Betty), Sigdestad, Hanks

Voting No:    Kirkeby, Olson (Russell), Pitts, Rounds

Gavel returned to Chair Hanks

         HB 1133: revise certain provisions regarding the expenditure of proceeds from the county wheel tax.

         Previously heard on January 25, 2007

Proponents:    Representative Dan Ahlers (Handout #2)
        Bob Wilcox, SD Assoc. Of County Commissioners
        Deb Mortenson, Association of General Contractors

MOTION:     AMEND HB 1133

1133oa
     On the printed bill, delete everything after the enacting clause and insert:

"      Section  1.  That chapter 32-5A be amended by adding thereto a NEW SECTION to read as follows:

     If a county has imposed the maximum wheel tax authorized by §  32-5A-1, the county may, by ordinance, impose a wheel tax in addition to the tax imposed pursuant to §  32-5A-1 on all motor vehicles registered in the county. The wheel tax may not exceed forty cents per wheel. The wheel tax may not exceed one dollar sixty cents per vehicle. The tax shall be administered and collected by the county. The county shall use the revenue collected pursuant to this section to provide for the supervision and enforcement of traffic laws on county highways.

     Section  2.  That § 32-5A-4 be amended to read as follows:

     32-5A-4.   The Department of Revenue and Regulation shall include on any motor vehicle registration document mailed out to a vehicle owner prior to the annual registration of a motor vehicle, the amount of tax imposed pursuant to § 32-5A-1 and section 1 of this Act . A county in which such registration documents are mailed to motor vehicle owners shall reimburse the Department of Revenue and Regulation for the cost of implementing this section for that county.

     Section  3.  That § 32-5A-5 be amended to read as follows:

     32-5A-5.   The per vehicle wheel rate imposed pursuant to § 32-5A-1 and section 1 of this Act may be imposed according to the manufacturer's shipping weight, including accessories, and may vary according to the following schedule:

             (1)      Two thousand pounds or less, inclusive;
             (2)      From 2001 to 4000 pounds, inclusive;
             (3)      From 4001 to 6000 pounds, inclusive;
             (4)      Over 6000 pounds. "

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

Voting Yes:    Gassman, Halverson, Howie, Kirkeby, Lucas, Olson (Betty), Pitts, Rounds, Sigdestad

Voting No:    Koistinen, Nelson, Olson (Russell), Hanks

 MOTION:     DO PASS HB 1133 AS AMENDED

Moved by:    Rounds
Second by:    Lucas
Action:    Failed by roll call vote.(6-7-0-0)

Voting Yes:    Gassman, Howie, Kirkeby, Lucas, Olson (Betty), Rounds

Voting No:    Halverson, Koistinen, Nelson, Olson (Russell), Pitts, Sigdestad, Hanks

 MOTION:     DEFER HB 1133 TO THE 41ST LEGISLATIVE DAY

Moved by:    Koistinen
Second by:    Olson (Russell)
Action:    Prevailed by roll call vote.(12-1-0-0)

Voting Yes:    Halverson, Howie, Kirkeby, Koistinen, Lucas, Nelson, Olson (Betty), Olson (Russell), Pitts, Rounds, Sigdestad, Hanks

Voting No:    Gassman

 MOTION:     ADJOURN

Moved by:    Rounds
Second by:    Olson (Betty)
Action:    Prevailed by voice vote.

Peggy Hyde

____________________________

Committee Secretary
Alan Hanks, Chair