JOURNAL OF THE SENATE

EIGHTY-FIFTH SESSION




THIRTY-EIGHTH DAY




STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Monday, March 29, 2010

    The Senate convened at 10:00 a.m., pursuant to adjournment, the President presiding.

    The prayer was offered by the Chaplain, Pastor Howard Grinager, followed by the Pledge of Allegiance led by Senate page Alexandra Alspach.

    Roll Call: All members present except Sen. Maher who was excused.

APPROVAL OF THE JOURNAL

MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Secretary of the Senate has had under consideration the Senate Journal of the thirty-seventh day.

    All errors, typographical or otherwise, are duly marked in the temporary journal for correction.

    And we hereby move the adoption of the report.

Respectfully submitted,
Bob Gray, Chair

    Which motion prevailed.
COMMUNICATIONS AND PETITIONS

March 24, 2010

The Honorable Dennis Daugaard
President of the Senate
500 East Capitol Avenue
Pierre, SD 57501-5070

Dear Mr. President and Members of the Senate:

I return herewith Senate Bill 102 and VETO the same. Senate Bill 102 is An Act to modify and continue the lease agreement on the Black Hills Playhouse.

I veto SB 102 first because it violates Article III, Section 23, of the South Dakota Constitution which prohibits enactment of any special or private law. SB 102 unquestionably operates solely to extend the lease franchise of one individual leaseholder. It unquestionably operates to alter legal rights and obligations arising under solely one contract. It unquestionably cannot apply to any other situation. The act is therefore unconstitutional and I veto it for that reason.

I secondly veto SB 102, because, as a matter of public policy, I think it is improper to intervene legislatively in a matter of pending litigation. The Black Hills Playhouse initiated litigation to interpret and enforce certain elements of the existing lease; the state has asserted issues as counterclaims. That matter is currently pending before the trial court. I do not think the legislature should intervene to alter or determine the rights of parties to pending litigation and, therefore, veto SB 102 for this reason as well.

Finally, the Act attempts to impose conditions on the Black Hills Playhouse that the State has consistently requested and the Black Hills Playhouse has failed to comply with. Many of the buildings on site have life and safety code violations which must be corrected before they can be occupied. Those violations have developed over time and have not been addressed by the Playhouse. Similarly, the act seeks to impose a requirement that the Playhouse develop a fund for infrastructure needs. The state has requested that the Playhouse provide adequate funds for infrastructure repeatedly and that request has not been complied with. The conditions imposed by SB 102 have been requested and not accepted by the Black Hills Playhouse. In short, SB 102 may well result in no actual change of circumstances for the operation of the Playhouse unless the Playhouse steps forward financially to meet its obligations.

Therefore, for these reasons, I respectfully request that you concur with my action and sustain my veto.

Respectfully submitted,
M. Michael Rounds
Governor



March 24, 2010

The Honorable Dennis Daugaard
President of the Senate
500 East Capitol Avenue
Pierre, SD 57501-5070

Dear Mr. President and Members of the Senate:

I herewith return Senate Bill 121 and VETO the same.

Senate Bill 121 is entitled, "An Act to require the Department of Education to promote certain programs for children who are deaf and hard-of-hearing."

Senate Bill 121 requires the Department of Education to establish and implement a program and policy which promotes the education of children who are deaf and hard-of hearing. The program and policy shall be disseminated to all school districts and other local education agencies. Further, the program and policy require school districts to implement many specific instructional methods that are already required by federal law or extend beyond federal law. The bill is simultaneously redundant and restrictive.

The Individuals with Disabilities Education Improvement Act requires a student's individual education program team to "consider the communication needs of the child and in the case of a child who is deaf or hard of hearing, consider the child's language and communication needs, opportunities for direct communication with peers and professional personnel in the child's language and communication mode, academic level, and full range of needs, including opportunities for direct instruction in the child's language and communication mode." The federal requirement has the same intent as sections 1 and 2 in the bill. Additional federal regulations mirror sections 6, 7, and 8 of the bill.

However, sections 3 and 4 of the bill exceed federal expectations. Section 3 calls for virtually all personnel working with children who are deaf or hard-of-hearing to be specifically trained to work with those children and their special education teachers or interpreters are required to be proficient in the primary language mode of those children. While schools recognize the importance of disability related training and information for teachers, it would be very difficult, for example, to make certain a special educator was proficient in American Sign Language, if that was the child's primary language mode. Section 4 of the bill calls for school districts to make certain that children who are deaf or hard-of-hearing "have an education with a sufficient number of language mode peers who are of the same or approximately the same age and ability level and with whom the children can communicate directly, or as appropriate through the use of qualified interpreters." This is just not possible in our rural districts and, I believe, even our larger school districts would struggle with this requirement.

The South Dakota Constitution places the obligation for many of the bill's requirements on the Board of Regents. The Regents also have the resources to carry out their obligations. The

Department of Education does not have the resources to establish and implement a program without additional FTE and funding.

The bill language is very broad and thus subject to different interpretation. The Department of Education must establish a program and policy. The department must make sure school districts understand and implement all of the bill's provisions. The bill sponsors believe it is necessary to "raise awareness" or to "continue the conversation." However, the bill language states otherwise. School districts and the department will be in a vulnerable position if challenged in the implementation.

The Department of Education, Board of Regents, and advocates for deaf and hard-of-hearing children are currently working together to revise the interagency agreement and craft a transition plan for the South Dakota School for the Deaf. Both entities have been very open with the deaf community and are seeking input from that group. Please allow this process to work prior to passing Senate Bill 121. The bill has a delayed implementation date. If, following the work of the Department of Education, the Board of Regents, and the deaf community, we find that legislation is still necessary, that remains an option. I believe the bill is well intended. I also believe we can accomplish the goals of the sponsors without the bill.

Therefore, I respectfully request you concur with my action. If the South Dakota Legislature sustains my veto, the Department of Education and the Board of Regents will work to accomplish the bill's goals while not mandating an undue burden on local schools.

Respectfully yours,
M. Michael Rounds
Governor

March 25, 2010

The Honorable Dennis Daugaard
President of the Senate
500 East Capitol Avenue
Pierre, SD 57501-5070

Dear Mr. President and Members of the Senate:

I return herewith Senate Bill 169 and VETO the same. Senate Bill 169 is An Act to limit the subrogation of certain insurers unless and until the insured is made whole.

I agree with the sponsors of SB 169 that the current system in South Dakota which allows insurers to recover their subrogation interest ahead of any recovery by an injured party is inequitable and should be changed. I veto SB 169, because, I believe, it swings the pendulum too far in the opposite direction. I think, a compromise which moves injured parties to the front of the line, while not placing the subrogation interests of insurers entirely at the end of the line, is the appropriate policy balance which should be struck.



I read SB 169 to allow insurers to recover their subrogation interest only after an insured party is "made whole" in the sense that all items of potentially recoverable damages have been recovered. While I do not accept the argument that the act's failure to define the term "made whole" will automatically generate litigation, I do think that requiring all available damages to be recorded prior to the subrogation interest will spawn disagreements that prioritizing a limited class of damages might not. For example, if the damages that must be satisfied before a subrogation interest may be addressed were limited to actual past and future expenses and other more objective measures, I think that disputes regarding whether a litigant was "made whole" may be less frequent. By including all damages, including pain and suffering, loss of consortium, loss of enjoyment of life, and other subjective measures, I think that a greater likelihood of disputes exists. Additionally, by simply moving from one end of the spectrum to the other, I fear that the main change may be which party instigates disputes.

I believe, a change in this area is appropriate, but must contain more compromise than SB 169 does. I would support an effort by the State Bar to work on a proposal over the interim to present next Session. I think such a proposal should consider limiting the types of damages that must be fully satisfied as "made whole" prior to a subrogation interest being recovered, some rebuttable presumption that settlements within insurance policy limits leave an injured party "made whole," or some type of proportionate recovery system. While I am skeptical of arguments that SB 169 will result in a drastic increase in insurance premiums, I do have a concern that the total reversal of policy in SB 169 will just trade one imbalance for another. Injured parties should not remain strictly at the back of the line, but I do not think the order of the line should simply be reversed.

Therefore, for the reasons set forth above, I respectfully request that you concur with my action and sustain my veto.

Respectfully submitted,
M. Michael Rounds
Governor

March 23, 2010

Mr. President and Members of the Senate:

    I have the honor to inform you that on March 23, 2010, I approved Senate Bills 2, 64, 65, 66, and 69, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor


March 24, 2010

Mr. President and Members of the Senate:

    I have the honor to inform you that on March 24, 2010, I approved Senate Bills 49, 62, 80, 81, 88, 97, 98, 100, 103, 105, 108, 114, 115, 125, 134, 139, 148, 149, 155, 156, 168, and 184, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

March 25, 2010

Mr. President and Members of the Senate:

    I have the honor to inform you that on March 25, 2010, I approved Senate Bills 78, 172, 188, and 195, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

March 26, 2010

Mr. President and Members of the Senate:

    I have the honor to inform you that on March 26, 2010, I approved Senate Bills 12, 21, 22, 58, 67, 75, 104, 106, and 141, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

MOTIONS AND RESOLUTIONS


    Sen. Knudson moved that a committee of three on the part of the Senate be appointed to meet with a like committee on the part of the House to fix the time of adjournment sine die for the Eighty-fifth Legislative Session.

    Which motion prevailed and the President announced as such committee Sens. Knudson, Dempster, and Heidepriem.



    Sen. Knudson moved that a committee of three on the part of the Senate be appointed to meet with a like committee on the part of the House to wait upon his Excellency, the Governor, to inform him that the Legislature has completed its labors and is ready to adjourn sine die and to ascertain if he has any further communications to make to the Legislature.

    Which motion prevailed and the President announced as such committee Sens. Knudson, Dempster, and Heidepriem.


    Sen. Knudson moved that the Senate do now recess until 10:30 a.m., which motion prevailed and at 10:08 a.m., the Senate recessed.

RECESS

    The Senate reconvened at 10:30 a.m., the President presiding.

CONSIDERATION OF EXECUTIVE VETOES AND RECOMMENDATIONS

    The Senate proceeded to the reconsideration of SB 102 pursuant to the veto of the Governor and the veto message found on page 680 of the Senate Journal as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.

    The question being "Shall SB 102 pass, the veto of the Governor notwithstanding?"

    And the roll being called:

    Yeas 27, Nays 6, Excused 2, Absent 0

    Yeas:
Abdallah; Adelstein; Ahlers; Bartling; Bradford; Dempster; Fryslie; Gant; Garnos; Gillespie; Gray; Hansen (Tom); Hanson (Gary); Haverly; Heidepriem; Howie; Hunhoff (Jean); Jerstad; Kloucek; Knudson; Merchant; Miles; Nesselhuf; Peterson; Schmidt; Turbak Berry; Vehle

    Nays:
Brown; Nelson; Novstrup (Al); Olson (Russell); Rhoden; Tieszen

    Excused:
Hundstad; Maher

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed, the veto of the Governor notwithstanding.

    The Senate proceeded to the reconsideration of SB 121 pursuant to the veto of the Governor and the veto message found on page 681 of the Senate Journal as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.



    The question being "Shall SB 121 pass, the veto of the Governor notwithstanding?"

    And the roll being called:

    Yeas 30, Nays 4, Excused 1, Absent 0

    Yeas:
Abdallah; Ahlers; Bartling; Bradford; Brown; Dempster; Fryslie; Gant; Garnos; Gillespie; Hansen (Tom); Hanson (Gary); Haverly; Heidepriem; Howie; Hundstad; Hunhoff (Jean); Jerstad; Kloucek; Knudson; Merchant; Miles; Nesselhuf; Olson (Russell); Peterson; Rhoden; Schmidt; Tieszen; Turbak Berry; Vehle

    Nays:
Adelstein; Gray; Nelson; Novstrup (Al)

    Excused:
Maher

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed, the veto of the Governor notwithstanding.

    The Senate proceeded to the reconsideration of SB 169 pursuant to the veto of the Governor and the veto message found on page 682 of the Senate Journal as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.

    The question being "Shall SB 169 pass, the veto of the Governor notwithstanding?"

    And the roll being called:

    Yeas 21, Nays 13, Excused 1, Absent 0

    Yeas:
Abdallah; Adelstein; Ahlers; Bartling; Bradford; Dempster; Gillespie; Hanson (Gary); Heidepriem; Howie; Hundstad; Jerstad; Kloucek; Merchant; Miles; Nelson; Nesselhuf; Peterson; Rhoden; Schmidt; Turbak Berry

    Nays:
Brown; Fryslie; Gant; Garnos; Gray; Hansen (Tom); Haverly; Hunhoff (Jean); Knudson; Novstrup (Al); Olson (Russell); Tieszen; Vehle

    Excused:
Maher

    So the bill not having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill lost, sustaining the Governor's veto.


MESSAGES FROM THE HOUSE

MR. PRESIDENT:

    I have the honor to inform your honorable body that the House has appointed Reps. Rave, Faehn, and Bernie Hunhoff as a committee of three on the part of the House to meet with a like committee on the part of the Senate pertaining to fixing the time of adjournment sine die for the Eighty-fifth Legislative Session.

Also MR. PRESIDENT:

    I have the honor to inform your honorable body that the House has appointed Reps. Rave, Faehn, and Bernie Hunhoff as a committee of three on the part of the House to meet with a like committee on the part of the Senate to wait upon his Excellency, the Governor, to inform him that the Legislature has completed its labors, is ready to adjourn sine die, and to ascertain if he has any further communications to make to the Legislature.

Also MR. PRESIDENT:

    I have the honor to inform your honorable body that the House has passed HB 1240 over the veto of the Governor. The veto message of the Governor is found on page 861 of the House Journal.

    We hereby request your favorable consideration in passing HB 1240, the veto of the Governor notwithstanding.

Also MR. PRESIDENT:

    I have the honor to inform your honorable body that the House has passed HB 1060 over the veto of the Governor. The veto message of the Governor is found on page 862 of the House Journal.

    We hereby request your favorable consideration in passing HB 1060, the veto of the Governor notwithstanding.

Respectfully,
Karen Gerdes, Chief Clerk


MOTIONS AND RESOLUTIONS

    Sen. Howie moved that the rules be suspended for the sole purpose of introducing, giving first reading to, dispensing with committee referral, and immediate consideration of a bill relating to the federal health care laws.

    The question being on Sen. Howie's motion that the rules be suspended for the sole purpose of introducing, giving first reading to, dispensing with committee referral, and immediate consideration of a bill relating to the federal health care laws.

    And the roll being called:

    Yeas 14, Nays 20, Excused 1, Absent 0

    Yeas:
Abdallah; Adelstein; Brown; Gant; Garnos; Gray; Haverly; Howie; Nelson; Novstrup (Al); Olson (Russell); Rhoden; Schmidt; Tieszen

    Nays:
Ahlers; Bartling; Bradford; Dempster; Fryslie; Gillespie; Hansen (Tom); Hanson (Gary); Heidepriem; Hundstad; Hunhoff (Jean); Jerstad; Kloucek; Knudson; Merchant; Miles; Nesselhuf; Peterson; Turbak Berry; Vehle

    Excused:
Maher

    So the motion not having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the motion lost.

    Sen. Knudson moved that the Senate do now recess until 1:30 p.m., which motion prevailed and at 11:30 a.m., the Senate recessed.

RECESS

    The Senate reconvened at 1:30 p.m., the President presiding.

CONSIDERATION OF EXECUTIVE VETOES AND RECOMMENDATIONS

    The Senate proceeded to the reconsideration of HB 1060 pursuant to the veto of the Governor and the veto message found on page 862 of the House Journal as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.

    The question being "Shall HB 1060 pass, the veto of the Governor notwithstanding?"


    And the roll being called:

    Yeas 33, Nays 0, Excused 2, Absent 0

    Yeas:
Abdallah; Adelstein; Bartling; Bradford; Brown; Dempster; Fryslie; Gant; Garnos; Gillespie; Gray; Hansen (Tom); Hanson (Gary); Haverly; Heidepriem; Howie; Hundstad; Hunhoff (Jean); Jerstad; Kloucek; Knudson; Merchant; Miles; Nelson; Nesselhuf; Novstrup (Al); Olson (Russell); Peterson; Rhoden; Schmidt; Tieszen; Turbak Berry; Vehle

    Excused:
Ahlers; Maher

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed, the veto of the Governor notwithstanding.

    The Senate proceeded to the reconsideration of HB 1240 pursuant to the veto of the Governor and the veto message found on page 861 of the House Journal as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.

    The question being "Shall HB 1240 pass, the veto of the Governor notwithstanding?"

    And the roll being called:

    Yeas 31, Nays 2, Excused 2, Absent 0

    Yeas:
Abdallah; Adelstein; Bartling; Bradford; Brown; Dempster; Fryslie; Gant; Garnos; Gillespie; Gray; Hansen (Tom); Hanson (Gary); Heidepriem; Howie; Hundstad; Hunhoff (Jean); Jerstad; Kloucek; Knudson; Merchant; Miles; Nelson; Nesselhuf; Novstrup (Al); Olson (Russell); Peterson; Rhoden; Tieszen; Turbak Berry; Vehle

    Nays:
Haverly; Schmidt

    Excused:
Ahlers; Maher

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed, the veto of the Governor notwithstanding.


MOTIONS AND RESOLUTIONS

    Sen. Knudson moved that when we adjourn today, we adjourn to convene at 1:00 p.m. on Tuesday, March 30, the 39th legislative day.

    Which motion prevailed.

    Sen. Knudson moved that the Senate do now adjourn, which motion prevailed and at 1:42 p.m. the Senate adjourned.

Trudy Evenstad, Secretary