85th Legislative Session _ 2010

Committee: House State Affairs
Monday, March 08, 2010

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Boomgarden
P    Engels
P    Feinstein
P    Gosch
P    Hunhoff (Bernie)
P    Lucas
P    Lust
P    Rausch
P    Rave
P    Steele
P    Turbiville
P    Noem, Vice-Chair
P    Faehn, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chairman Faehn.

MOTION:    TO APPROVE THE MINUTES OF MARCH 3, 2010.

Moved by:    Rausch
Second by:    Turbiville
Action:    Prevailed by voice vote.

        SB 76: revise the composition of the State Veterans' Commission.

Proponents:    Senator Nancy Turbak Berry
        Senator Dave Knudson
        Dennis Brenden, American Legion, Watertown, SD
        Ryan Green, Paralyzed Veterans of America

Opponents:    Neil Fulton, Governor's Office
        Joe Jacobson, self, Rapid City

MOTION:    DEFER SB 76 TO THE 41ST LEGISLATIVE DAY

Moved by:    Turbiville
Second by:    Rausch
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DO PASS SB 76

Moved by:    Engels
Second by:    Feinstein
Action:    Failed by roll call vote. (5-8-0-0)

Voting Yes:    Engels, Feinstein, Hunhoff (Bernie), Lucas, Noem

Voting No:    Boomgarden, Gosch, Lust, Rausch, Rave, Steele, Turbiville, Faehn

THE MOTION TO DEFER SB 76 TO THE 41ST LEGISLATIVE DAY

Moved by:    Turbiville
Second by:    Rausch
Action:    PREVAILED BY ROLL CALL VOTE. (8-5-0-0)

Voting Yes:    Boomgarden, Gosch, Lust, Rausch, Rave, Steele, Turbiville, Faehn

Voting No:    Engels, Feinstein, Hunhoff (Bernie), Lucas, Noem

        SB 69: authorize certain exceptions to the nursing facility moratorium.

Proponents:    Deb Bowman, Secretary of Social Services
        Steve Doohen, Dept. Of Military & Veterans Affairs
        Dennis Duncan, SD Health Care Assoc./Trans Canada
        Ken Senger, SD Association of Healthcare Organizations
        Sam Wilson, AARP, Sioux Falls
        Warren L. Aas, American Legion
        Ryan Green, SD Paralyzed Veterns of America, Sioux Falls
        Wade Hubbard, State Veterans Commission

MOTION:    DO PASS SB 69
Moved by:    Turbiville
Second by:    Rave
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lucas, Lust, Rausch, Rave, Steele, Turbiville, Noem, Faehn

        SB 187: provide for the adjustment of appropriated moneys to projected available revenues.

Proponents:    Senator Dave Knudson

MOTION:    AMEND SB 187

187oa

    On page 1, line 4, of the printed bill, delete "The total amount" and insert "Fifty percent".


Moved by:    Rave
Second by:    Noem
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 187 AS AMENDED

Moved by:    Rausch
Second by:    Noem
Action:    Prevailed by roll call vote. (12-1-0-0)

Voting Yes:    Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lust, Rausch, Rave, Steele, Turbiville, Noem, Faehn

Voting No:    Lucas

The gavel was passed to Representative Noem, Vice Chair.

        SB 139: revise the membership of the State Building Committee created during the planning stages of certain state facilities.

Proponents:    Representative Bob Faehn

MOTION:    RECONSIDER SB 139 AND BRING UP FOR IMMEDIATE CONSIDERATION PURSUANT TO JOINT RULE 7-1.5.

Moved by:    Rave
Second by:    Rausch
Action:    Prevailed by roll call vote. (12-1-0-0)

Voting Yes:    Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lust, Rausch, Rave, Steele, Turbiville, Noem, Faehn

Voting No:    Lucas

MOTION:    AMEND SB 139

139oa

    On the Senate State Affairs Committee engrossed bill, delete everything after the enacting clause and insert:

    "
    Section 1. That § 37-6-18 be amended to read as follows:

    37-6-18. The secretary of state shall cancel from the register any registration concerning for which the secretary of state shall receive has received a voluntary request for cancellation thereof from the registrant or the assignee of record. The secretary of state, upon notice to the registrant, may cancel from the register any registration that the secretary of state granted in the previous one hundred eighty days upon a finding that:

            (1)    That the registration was granted improperly or in error; or

            (2)    That the registration was obtained fraudulently.

If the registrant objects, a hearing shall be conducted pursuant to chapter 1-26. "."


Moved by:    Rave
Second by:    Rausch
Action:    Prevailed by voice vote.

MOTION:    AMEND SB 139

139ob

    On the previously adopted amendment (139oa), in Section 1, subdivision (1), delete "That the" and insert "The".

    On the previously adopted amendment (139oa), in Section 1, subdivision (2), delete "That the" and insert "The".


Moved by:    Lust
Second by:    Faehn
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 139 AS AMENDED

Moved by:    Rausch
Second by:    Turbiville
Action:    Prevailed by roll call vote. (12-1-0-0)

Voting Yes:    Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lust, Rausch, Rave, Steele, Turbiville, Noem, Faehn

Voting No:    Lucas

MOTION:    AMEND TITLE OF SB 139

139ota

    On page 1, line 1, of the Senate State Affairs Committee engrossed bill, delete everything after "Act to" and insert "permit the secretary of state to cancel a trademark or service mark registration under certain conditions.".

    On page 1, delete line 2.


Moved by:    Rausch
Second by:    Faehn
Action:    Prevailed by voice vote.

The gavel was returned to Chairman Faehn.

        SB 195: revise the refunds for new or expanded agricultural facilities and new or expanded business facilities, to repeal the contractors' excise tax on new or expanded power production facilities, to exempt certain new business facilities from certain tax refunds, and to make certain transfers to the revolving economic development and initiative fund.

Proponents:    Senator Dave Knudson
        Neil Fulton, Governor's Office
Opponents:    Steve Willard, SD Electric Utilities
        David Owen, SD Chamber of Commerce & Industry
        Julie Johnson, Absolutely Aberdeen & Aberdeen Development Corp.
        Steve Tomac, Basin Electric Power Coop
        Joel Keierleber, self, Colome

MOTION:    AMEND SB 195

195fq

    On the Senate engrossed bill, delete everything after the enacting clause and insert:

    "    Section 1. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    The refund of taxes pursuant to §§ 10-45B-2 and 10-45B-2.1 pertains only to project costs incurred and paid after the effective date of this Act, up to and including thirty-six months from the construction date. No refund may be paid unless the person applying for the refund obtains a permit from the secretary as set forth in § 10-45B-6.

    Section 2. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    Notwithstanding any provision of chapter 10-45B or this Act, this section controls the amount of refunds payable under chapter 10-45B for any new agricultural processing facility or new business facility that has a construction date on or after July 1, 2010:
            
            (1)    For project cost incurred and paid from July 1, 2010, to December 31, 2012, inclusive, the amount of the refund shall be determined by applying the provisions of chapter 10-45B in effect on July 1, 2010, and prior to the repeal of chapter 10-45B on January 1, 2013; and
            (2)    For project costs incurred and paid before December 31, 2012, the amount of the refund shall be as follows:

            (a)    For project costs of less than ten million dollars, there shall be no refund; and

            (b)    For project costs of ten or more million dollars, there shall be a refund of fifty-five percent of the taxes paid.

    Section 3. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    No claim for refund pursuant to this chapter may be considered by the department if the claim for refund is received twelve months after the thirty-six month time period of section 1 of this Act. Moreover, any such claim is barred from any future refund eligibility.
    
    Section 4. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    No document or record in support of any claim for refund may be considered by the department if the document or record in support of any claim for refund is received twelve months after the thirty-six month time period of section 1 of this Act. Moreover, any such document or record is barred from any future consideration.
    However, if the department requests any additional document or record from the project owner after a review of the claim for refund, and the request is made after the applicable time period provided by this section has expired, the project owner has sixty days to provide the requested document or record. No document or record received after this sixty-day period may be considered by the department. Moreover, any such document or record is barred from any future consideration.
    
    Section 5. That chapter 10-45B be amended by adding thereto a NEW SECTION to read as follows:

    The provisions of chapter 10-45B in effect prior to the effective date of this Act apply to any project where the construction date was before the effective date of this Act.

    Section 6. That § 10-45B-2 be amended to read as follows:

    10-45B-2. Any person As provided in this chapter, any person holding a permit issued pursuant to § 10-45B-6 may apply for and obtain a refund or credit for contractors' excise taxes imposed and paid under the provisions of chapter 10-46A for the construction of a new agricultural processing facility and for sales or use taxes imposed and paid by such person under the provisions of chapters 10-45 and 10-46 for the purchase or use of agricultural processing equipment.

    Section 7. That § 10-45B-8 be amended to read as follows:

    10-45B-8. Any person issued a permit pursuant to this chapter shall submit a claim for refund to the department no more frequently than on or before the last day of each month and no less frequently than on or before the last day of each month following each calendar quarter. The secretary shall determine and pay the amount of the tax refund within ninety days of receipt of the claim for refund. Ninety-five percent of the amount of refund shall be paid to the claimant in accordance with §§ 10-59-22 and 10-59-23, and five percent shall be withheld by the department. No interest may be paid on the refund amount. If electronic funds transfer is available to the secretary, the secretary shall pay the refund by electronic funds transfer if requested by the claimant. The secretary shall pay the refund by electronic funds transfer.

    Section 8. That § 10-45B-9 be amended to read as follows:

    10-45B-9. The amounts withheld by the department in accordance with § 10-45B-8 shall be retained until the project has been completed and the claimant has met all the conditions of § 10-45B-4 or 10-45B-4.1 section 1 of this Act, at which time all sums retained shall be paid to claimant.

    Section 9. That § 10-45B-4 be repealed.

    10-45B-4. The refund of taxes for a new agricultural processing facility pertains only to project costs incurred and paid after April 1, 1997, and within thirty-six months of the construction date as stated on the application required by § 10-45B-6. No refund may be made unless:

            (1)    The project cost exceeds the sum of four million five hundred thousand dollars; and
            (2)    The person applying for the refund obtains a permit from the secretary as set forth in § 10-45B-6.

    Section 10. That § 10-45B-4.1 be repealed.

    10-45B-4.1. The refund of taxes pursuant to § 10-45B-2.1 pertains only to project costs incurred and paid after February 1, 2005, up to and including thirty-six months from the construction date if the project costs are sixty million dollars or less and after February 1, 2005, up to and including seventy-two months from the construction date if the project costs are more than sixty million dollars. There is no refund if the person applying for the refund does not obtain a permit from the secretary as set forth in § 10-45B-6.

    Upon a showing of good cause, the time limits prescribed by this section may be extended by the secretary for a period not to exceed twenty-four months.

    Section 11. That § 10-45B-5 be repealed.

    10-45B-5. If the project cost for a new agricultural processing facility exceeds four million five

hundred thousand dollars, the refund shall be one hundred percent of the taxes attributed to the project cost.

    Section 12. That § 10-45B-5.1 be repealed.

    10-45B-5.1. The amount of the tax refund for a new business facility shall be a percentage of the taxes paid, as follows:

            (1)    For project costs of less than ten million dollars, there shall be no refund;
            (2)    For project costs of ten or more million dollars but less than fifteen million dollars there shall be a refund of twenty-five percent of the taxes paid;
            (3)    For project costs of fifteen or more million dollars but less than twenty million dollars there shall be a refund of thirty-three percent of the taxes paid;
            (4)    For project costs of twenty or more million dollars but less than forty million dollars there shall be a refund of fifty percent of the taxes paid;
            (5)    For project costs of forty or more million dollars but less than sixty million dollars there shall be a refund of sixty-seven percent of the taxes paid;
            (6)    For project costs of sixty million dollars or more but less than six hundred million dollars there shall be a refund of seventy-five percent of the taxes paid; and
            (7)    For project costs of six hundred million dollars and greater there shall be a refund of ninety percent of the taxes paid.

    Section 13. That § 10-45B-6.1 be repealed.

    10-45B-6.1. Any person issued a permit pursuant to this chapter prior to March 31, 1997, may continue to submit claims for the project.

    Section 14. That § 10-45B-8.1 be repealed.

    10-45B-8.1. No claim for refund pursuant to this chapter may be considered by the department if the claim for refund is received after the following applicable time period:

            (1)    Twelve months after the thirty-six month time period of § 10-45B-4;
            (2)    Twelve months after the thirty-six month time period of § 10-45B-4.1 for projects with project costs of sixty million dollars or less;
            (3)    Twelve months after the seventy-two month time period of § 10-45B-4.1 for projects with project costs of more than sixty million dollars; or
            (4)    Twelve months after the extended time period of § 10-45B-4.1 for projects that have obtained a time limit extension from the secretary.
Moreover, any such claim is barred from any future refund eligibility.

    Section 15. That § 10-45B-8.2 be repealed.

    10-45B-8.2. No document or record in support of any claim for refund may be considered by the

department if the documents or records in support of any claim for refund are received after the following applicable time period:

            (1)    Twelve months after the thirty-six month time period of § 10-45B-4;
            (2)    Twelve months after the thirty-six month time period of § 10-45B-4.1 for projects with project costs of sixty million dollars or less;
            (3)    Twelve months after the seventy-two month time period of § 10-45B-4.1 for projects with project costs of more than sixty million dollars; or
            (4)    Twelve months after the extended time period of § 10-45B-4.1 for projects that have obtained a time limit extension from the secretary.
Moreover, any such document or record is barred from any future consideration.
    However, if the department requests any additional document or record from the project owner after a review of the claim for refund, and the request is made after the applicable time period provided by this section has expired, the project owner has sixty days to provide the requested document or record. No document or record received after this sixty-day period may be considered by the department. Moreover, any such document or record is barred from any future consideration.

    Section 16. That § 10-45B-8.3 be repealed.

    10-45B-8.3. The provisions of §§ 10-45B-8.1 and 10-45B-8.2 apply to refunds for projects only if the permit was applied for after June 30, 2009.

    Section 17. That chapter 10-45B be repealed on January 1, 2013."



Moved by:    Rave
Second by:    Rausch
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 195 AS AMENDED

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

Voting Yes:    Boomgarden, Gosch, Lust, Rausch, Rave, Steele, Turbiville, Noem, Faehn

Voting No:    Engels, Feinstein, Hunhoff (Bernie), Lucas

MOTION:    AMEND TITLE OF SB 195

195fte
    On page 1, line 2, of the Senate engrossed bill, delete everything after "business facilities" and insert "and to sunset the refunds for new or expanded agricultural facilities and new or expanded business facilities.".

    On page 1, delete lines 3 to 5, inclusive.


Moved by:    Rausch
Second by:    Rave
Action:    Prevailed by voice vote.

MOTION:    ADJOURN

Moved by:    Turbiville
Second by:    Rave
Action:    Prevailed by voice vote.

Grace Curtis

____________________________

Committee Secretary
Bob Faehn, Chair

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