RULES REVIEW COMMITTEE MINUTES

A quorum was determined with the following members answering the roll call: Senators Eric Bogue, H. Paul Dennert, and Royal "Mac" McCracken; and Representatives Matthew Michels and Orville Smidt. Representative Gerald Lange was unable to attend.

Staff members present included Doug Decker, Code Counsel, and Teri Retrum, Senior Legislative Secretary.

All material distributed at the meeting is attached to the original minutes on file in the Legislative Research Council. For the purpose of continuity, these minutes are not necessarily in chronological order.

Department of Game, Fish and Parks ? Hunting license fees, national wildlife refuge deer hunting seasons, youth deer season, Black Hills deer hunting season, nonresident waterfowl licenses, waterfowl hunting season ? tundra swan season and special Canada goose and goose hunting seasons, application for license, uses of parks and public lands, boat license fees.

Mr. Doug Hansen summarized the changes in the department's rules.

Department of Education and Cultural Affairs: Professional Administrators Practices and Standards Commission ? Definitions relating to educational administrators, clarify code of ethics for administrators, evidence presented during a hearing, clarify who receives commission decisions.

Ms. Shelley Roemmich, Department of Education and Cultural Affairs, Mr. Don Kjerkegard, Supertintendent from Britton, and Mr. Don Quimby, Superintendent from Parker, reviewed the rules relating to educational administrators.

Department of Education and Cultural Affairs: Professional Teachers Practices and Standards Commission ? Definitions relating to employees in educational institutions, clarify code of ethics for teachers, time for filing complaints, conformity of language in statutes and rules, evidence presented at hearing, clarify who receives commission decisions.

Ms. Roemmich also explained the rules relating to teachers.

Department of Revenue ? Set minimum number of hours auto dealers are open, guidelines for in-transit permits, update information regarding appraisals, damage disclosures on motor vehicles, motor vehicle registration lists, repeal definition of "State logo die stamp," methods regarding use of motor vehicle identification numbers, repeal rules involving exemption of certain members of Indian tribes from motor vehicle excise tax.

Ms. Deb Hillmer and Ms. Colleen Skinner summarized the rules for the Department of Revenue. Ms. Hillmer said the department is proposing to amend ARSD 61:24:03:01. Maintenance of principal place of business to require a licensed auto dealer to be open to the public a minimum of twenty hours per week. This change is to allow the consumer reliable access to address any concerns with the dealer.

Representative Bill Napoli, Rapid City, expressed his opposition to the proposed rule change. He said that he was unaware of the department's proposed rule change and so did not appear at the rules hearing to comment. He said that the proposal is a major change in government's involvement in business. Mr. Napoli said that the change is unnecessary because the issue is addressed in statute.

Mr. Decker distributed copies of an e-mail from Representative Lange expressing his support for Mr. Napoli's comments (Document #1).

Department of Social Services ? Incorporate by reference current versions of publications used by the Department and the latest federal poverty levels, increase the cost outlier, update DRG and Medicaid payments, incorporate by reference changes in rate of payment for nursing facilities.

Ms. Jill Wellhouse summarized the changes in the rules proposed by the Department of Social Services.

Mr. Ken Senger, South Dakota Association of Health Care Organizations, expressed his opposition to amending the DRG payment rates and outpatient lab fees. He said that this change would have a substantial negative impact on small hospitals. Mr. Senger said that "this change corrects no problems and results in no enhancements in any rule."

Ms. Wellhouse said that although the department is planning to move ahead with the rules, it is willing to delay them until August in order to provide more opportunities for input.

Senator Dennert requested a roll call vote. The motion prevailed with 3 ayes, 2 nays, and 1 excused. Voting aye: Bogue, Dennert, and Smidt. Voting nay: McCracken and Michels. Excused: Lange.

Department of Social Services ? TANF rules updated and clarified.

Department of Social Services ? Amend Food Stamp Program rules.

Secretary of State ? Procedures for acceptance and refusal of Uniform Commercial Codes, requirements for filling out UCC forms, set fees for domestic business trusts.

Mr. Tom Leckey and Ms. Shelley Pitlick reviewed the proposed rules relating to UCC filings and forms and fees for domestic business trusts.

Discussion ensued on fees for domestic business trusts.

Secretary of State: Board of Elections ? Confirmation mailing notice, voter registration information, voter and ballot instructions, municipal recall and conservation district petitions, automatic tabulating system test notices, recount provisions, petition form for resolution of cooperation or consolidation, counting imperfectly marked ballots, and privacy sleeve for ballots.

Mr. Chris Nelson summarized the rules proposed by the Board of Elections.

Department of Agriculture ? Emergency Rules ? prevention of "Mad Cow Disease" in South Dakota. (Informational)

Department of Agriculture ? Labeling ruminant livestock feeds, manufacturing, handling, and transportation of livestock feeds, reduce feed and fertilizer tonnage inspection fees.

Secretary Larry Gabriel and Mr. Brad Berven explained the agriculture rules.

To address concerns from Mr. Gabriel and upon his recommendation, Senator Dennert rescinded his motion and Representative Smidt rescinded his second.

The Department is working with the livestock feed industry to rewrite this rule to meet some of the industry's concerns.

Department of Commerce and Regulation: Division of Insurance ? URO grievance procedures.

Ms. Naomi Cromwell said the rules put in place the new general authority and law implemented citations of URO grievance procedures.

Department of Human Services ? Guidelines for financial eligibility for mental health services.

Ms. Betty Oldenkamp explained the department's proposed change to the guidelines for financial eligibility for mental health services. Ms. Oldenkamp said that the department's goal is to serve those most in need with the dollars available.

Ms. Susan Randall, South Dakota Coalition for Children, expressed her concern with the 185% of poverty cap. She also relayed comments from Ms. Elena (Nena) Herrera, South Dakota Coalition for Children, which echoed Ms. Randall's concerns. Both Ms. Randall and Ms. Herrera oppose the changes proposed by the Department of Human Services.

Mr. Terry Dosch, South Dakota Council of Mental Health Centers, expressed opposition to the proposed changes. He said that he is concerned about children who will "fall through the cracks." Mr. Dosch commented that early diagnosis and treatment are key to preventing problems and expressed concern that it may cost more than is saved in the long run.

Ms. Carol Robertson, South Dakota Family Economic Project, distributed a brochure titled "South Dakota Families---Making Ends Meet?" (Document 2). She said that the federal policy guidelines have not been adjusted since they were developed in the late 1960s, except for a cost-of-living adjustment on food. Ms. Robertson said that the self-sufficiency standards are too conservative, and the eligibility is far too low.

Ms. Sharon Berglund, LaBolt, South Dakota, related a personal situation and the hardships involved with trying to receive the mental health services required for her daughter. Ms. Berglund also apprised the committee of a survey with 115 signatures regarding the issue.

Ms. Oldenkamp distributed copies of an outline showing the demarcation for net income of 185% of federal poverty level and the forms required to determine financial eligibility and hardship considerations (compiled and labeled Document 3).

At this time, Mr. Decker noted letters and faxes mailed to the committee regarding the department's proposed change to the guidelines for financial eligibility for mental health services (Document 4).

Responding to Mr. John Jones, Secretary of the Department of Human Services, Senator Bogue said that it was not his intention to mandate means testing at 200% of the federal poverty level for every state government program.

Department of Commerce and Regulation: Appraiser Certification Program ? Increase certain fees for appraisers.

Ms. Sherry Bren explained changes in fees for appraisers.

Department of Commerce and Regulation: Board of Medical and Osteopathic Examiners ? Permit the board to utilize applications other than those produced by the board.

Mr. Charvin Dixon briefed the committee on changes to the Board's rules via telephone conference call.

The committee adjourned at 1:35 p.m.

All Legislative Research Council committee minutes and agendas are available on the South Dakota Legislature's Homepage (http://legis.state.sd.us).