86
th Legislative Session _ 2011
Committee: Senate Commerce and Energy
Thursday, February 03, 2011
P - Present
E - Excused
A - Absent
Roll Call
P Adelstein
P Buhl
P Johnston
P Lederman
P Rave
P Nygaard, Vice-Chair
P Nelson (Tom), Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by chair, Senator Tom Nelson.
MOTION: SUSPEND RULE 7-1.4
Moved by: Nygaard
Second by: Rave
Action: Prevailed by roll call vote. (6-0-1-0)
Voting Yes: Adelstein, Johnston, Lederman, Rave, Nygaard, Nelson (Tom)
Excused: Buhl
MOTION: TO APPROVE THE MINUTES OF TUESDAY, FEBRUARY 1, 2011
Moved by: Nygaard
Second by: Rave
Action: Prevailed by voice vote.
SB 119: revise certain provisions relating to sureties for water user district treasurers.
Presented by: Senator Eldon Nygaard
Proponents: Margo Northrup, SD Association of Rural Water Systems
Dennis Duncan, SD B-Y Water District
MOTION: DO PASS SB 119
Moved by: Adelstein
Second by: Rave
Action: Prevailed by roll call vote. (6-0-1-0)
Voting Yes: Adelstein, Johnston, Lederman, Rave, Nygaard, Nelson (Tom)
Excused: Buhl
MOTION: PLACE SB 119 ON CONSENT CALENDAR
Moved by: Adelstein
Second by: Rave
Action: Prevailed by voice vote.
SB 121: authorize an alcoholic beverage retail license for certain malt beverage and
wine dealers.
Presented by: Senator Eldon Nygaard (Handouts: #1)
MOTION: AMEND SB 121
121fa
On page 1, after line 8 of the printed bill, insert:
"
Section 2. That § 35-2-25 be amended to read as follows:
35-2-25. No license granted pursuant to subdivisions 35-4-2(3), (4), (6), (12), (13), (16), (17),
and (17A) and section 1 of this Act and §§ 35-12-2 and 35-13-2 may be issued unless the applicant
has first obtained a sales tax license pursuant to chapter 10-45, or, if applicable, a use tax license
pursuant to chapter 10-46.
Section 3. That § 35-4-2.11 be amended to read as follows:
35-4-2.11. Fifty percent of all license and transfer fees received under the provisions of
subdivisions 35-4-2(16), (17), and (17A) and section 1 of this Act shall remain in the municipality
in which the licensee paying the fee is located, or if outside the corporate limits of a municipality,
then in the county in which the licensee is located. In addition, fifty percent of wholesaler license
fees received under subdivision 35-4-2(15) shall revert to the municipality in which the licensee is
located, or if outside the corporate limits of a municipality, then to the county in which the licensee
is located. The remainder of all license and transfer fees and penalties received shall be credited to
the state general fund.
Section 4. That § 35-4-79 be amended to read as follows:
35-4-79. No on-sale licensee may permit any person less than twenty-one years old to loiter on
the licensed premises or to sell, serve, dispense, or consume alcoholic beverages on such premises.
However, an on-sale licensee licensed pursuant to subdivision 35-4-2(4), (6), (11), (12), (13), or (16)
or section 1 of this Act may permit persons eighteen years old or older to sell and serve or dispense
alcoholic beverages if less than fifty percent of the gross business transacted by that establishment
is from the sale of alcoholic beverages and the licensee or an employee that is at least twenty-one
years of age is on the premises when the alcoholic beverage is sold or dispensed. For the purposes
of this section, the term, to sell and serve alcoholic beverages, means to take orders for alcoholic
beverages and to deliver alcoholic beverages to customers as a normal adjunct of waiting tables. The
term does not include tending bar or drawing or mixing alcoholic beverages.
A violation of this section is a Class 2 misdemeanor.
Section 5. That § 35-4-81.2 be amended to read as follows:
35-4-81.2. No licensee licensed under subdivisions 35-4-2(12), (16), (17), (17A), and (19) and
section 1 of this Act may sell, serve, or allow to be consumed on the premises covered by the license,
any alcoholic beverages between the hours of two a.m. and seven a.m. A violation of this section is
a Class 2 misdemeanor. ".
Moved by: Adelstein
Second by: Lederman
Action: Prevailed by voice vote.
MOTION: DO PASS SB 121 AS AMENDED
Moved by: Adelstein
Second by: Lederman
Action: Prevailed by roll call vote. (5-0-2-0)
Voting Yes: Adelstein, Johnston, Lederman, Nygaard, Nelson (Tom)
Excused: Buhl, Rave
HB 1030: revise the provisions relating to placement of surplus lines insurance and
tax allocation of surplus lines insurance.
Presented by: Merle Scheiber, Division of Insurance
Wendell Malsom, Division of Insurance, answered some questions
MOTION: DO PASS HB 1030
Moved by: Nygaard
Second by: Adelstein
Action: Prevailed by roll call vote. (6-0-1-0)
Voting Yes: Adelstein, Buhl, Johnston, Lederman, Nygaard, Nelson (Tom)
Excused: Rave
MOTION: PLACE HB 1030 ON CONSENT CALENDAR
Moved by: Adelstein
Second by: Nygaard
Action: Prevailed by voice vote.
SB 125: revise the time period for computing unemployment insurance employer
contribution rates.
Presented by: Senator Mike Vehle
Proponents: Pam Roberts, Secretary, Department of Labor
Don Kattke, Division of Insurance
Shawn Lyons, SD Retailers Association
Larry Mann, SD CPA Society
MOTION: AMEND SB 125
125oa
On page 3, after line 8 of the printed bill, insert:
" Section 3. That § 61-5-24.1 be amended to read as follows:
61-5-24.1. Employers required by this title to pay contributions, except employers that pursuant
to chapter 61-5A reimburse the unemployment compensation trust fund for benefits paid in lieu of
contributions, shall also pay an employer's investment in South Dakota's future fee, hereinafter
"investment fee," on wages as defined by this title. The fee rate for employers not eligible for
experience rating, as defined in § 61-5-20.2, shall be seventy hundredths percent through calendar
year 2006 and fifty-five hundredths percent on and after January 1, 2007. If an employer is eligible
for experience rating,
his the employer's reserve ratio shall be determined pursuant to
§ 61-5-18.14
§ 61-5-18.17 and
his the employer's investment fee rate shall be the rate appearing in column "A"
on the same line on which
his the employer's reserve ratio appears in column "B" of the following
rate schedules.
From January 1, 1993, to December 31, 2006, inclusive:
|
Column "A"
|
Column "B"
|
|
Investment Fee Rate
|
Reserve Ratio
|
|
0.70%
|
Less than 0.80%
|
|
0.60%
|
0.80% and Less than 1.00%
|
|
0.50%
|
1.00% and Less than 1.20%
|
|
0.40%
|
1.20% and Less than 1.30%
|
|
0.30%
|
1.30% and Less than 1.40%
|
|
0.20%
|
1.40% and Less than 1.50%
|
|
0.10%
|
1.50% and Less than 1.60%
|
|
0.00%
|
1.60% and Over
|
From January 1, 2007, to December 31, 2007, inclusive:
|
Column "A"
|
Column "B"
|
|
Investment Fee Rate
|
Reserve Ratio
|
|
0.60%
|
Less than 1.00%
|
|
0.50%
|
1.00% and Less than 1.20%
|
|
0.40%
|
1.20% and Less than 1.30%
|
|
0.30%
|
1.30% and Less than 1.40%
|
|
0.20%
|
1.40% and Less than 1.50%
|
|
0.10%
|
1.50% and Less than 1.60%
|
|
0.00%
|
1.60% and Over
|
From January 1, 2008, to December 31, 2008, inclusive:
|
Column "A"
|
Column "B"
|
|
Investment Fee Rate
|
Reserve Ratio
|
|
0.58%
|
Less than 1.00%
|
|
0.50%
|
1.00% and Less than 1.20%
|
|
0.40%
|
1.20% and Less than 1.30%
|
|
0.30%
|
1.30% and Less than 1.40%
|
|
0.20%
|
1.40% and Less than 1.50%
|
|
0.10%
|
1.50% and Less than 1.60%
|
|
0.00%
|
1.60% and Over
|
From January 1, 2009, to December 31, 2009, inclusive:
|
Column "A"
|
Column "B"
|
|
Investment Fee Rate
|
Reserve Ratio
|
|
0.56%
|
Less than 1.00%
|
|
0.50%
|
1.00% and Less than 1.20%
|
|
0.40%
|
1.20% and Less than 1.30%
|
|
0.30%
|
1.30% and Less than 1.40%
|
|
0.20%
|
1.40% and Less than 1.50%
|
|
0.10%
|
1.50% and Less than 1.60%
|
|
0.00%
|
1.60% and Over
|
Beginning January 1, 2010:
|
Column "A"
|
Column "B"
|
|
Investment Fee Rate
|
Reserve Ratio
|
|
0.55%
|
Less than 1.00%
|
|
0.50%
|
1.00% and Less than 1.20%
|
|
0.40%
|
1.20% and Less than 1.30%
|
|
0.30%
|
1.30% and Less than 1.40%
|
|
0.20%
|
1.40% and Less than 1.50%
|
|
0.10%
|
1.50% and Less than 1.60%
|
|
0.00%
|
1.60% and Over
|
The terms and conditions of this title which apply to the payment and collection of contributions
also apply to the payment and collection of the investment fee. Proceeds from the investment fee
shall be deposited in the clearing account of the unemployment compensation fund for clearance only
and may not become part of the fund. After clearance, the money derived from such payments, less
refunds made pursuant to the provisions of this title, shall be deposited in the employer's investment
in South Dakota's future special revenue fund as provided for in § 61-5-24.2. Investment fee
payments may not be credited to the employer's experience rating account and may not be deducted
in whole or in part by any employer from the wages of individuals in its employ.
The investment fee rate may not be increased over the applicable 1987 investment fee rate for
any employer with a positive balance in
his the employer's experience rating account on the
computation date, as established in rules promulgated by the secretary of labor pursuant to chapter
1-26, for the current year and the year preceding the current year.
The investment rates provided in this section apply to and are retroactive to taxable wages paid
on and after January 1, 1993. ".
Moved by: Johnston
Second by: Lederman
Action: Prevailed by voice vote.
MOTION: DO PASS SB 125 AS AMENDED
Moved by: Nygaard
Second by: Lederman
Action: Prevailed by roll call vote. (6-0-1-0)
Voting Yes: Adelstein, Buhl, Johnston, Lederman, Nygaard, Nelson (Tom)
Excused: Rave
MOTION: PLACE SB 125 ON CONSENT CALENDAR
Moved by: Adelstein
Second by: Nygaard
Action: Prevailed by voice vote.
HB 1034: repeal the requirement for motor vehicle liability insurance safety rating
discounts for certain older motor vehicle drivers.
Presented by: Merle Scheiber, Division of Insurance
Proponents: Mike Shaw, Property Casualty Insurance Association of America
Dennis Duncan, SD Insurance Alliance & Allstate Insurance
Opponents: Sam Wilson, AARP, Sioux Falls
MOTION: AMEND HB 1034
1034ja
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That § 58-11-58 be amended to read as follows:
58-11-58. Any schedule of rates or rating plan for private passenger motor vehicle bodily injury
and property damage liability insurance and collision insurance submitted to, or filed with, the
Division of Insurance shall provide for an appropriate reduction in premium charges for persons
fifty-five years of age or older who have successfully completed a motor vehicle accident prevention
course meeting the criteria approved by the Department of Revenue and Regulation.
A motor vehicle accident prevention course shall include at least four hours of online or
classroom instruction on the effects of aging on driving behavior; the effects of alcohol, drugs, and
medications on older drivers; laws relating to the proper use of a motor vehicle and safe driving
behavior; traffic crash avoidance and prevention measures; and driving hazards and risk factors
associated with traffic crash prevention.
However, insurers who offer a separate discount which is based upon the age of persons who are
fifty-five years of age or older or upon their driving record, are exempt from the provisions of this
section and are not required to make an additional filing with the Division of Insurance as a result
of the discount required by this section.
Section 2. That § 58-11-59 be amended to read as follows:
58-11-59. Upon successfully completing the approved course, each person shall be issued a
certificate by the organization offering the course which shall be used to qualify for the premium
discount required by § 58-11-58.
Section 3. That § 58-11-60 be amended to read as follows:
58-11-60. A person shall take and pass the approved course every three years to continue to be
eligible for the premium discount required by § 58-11-58.
Section 4. That § 58-11-61 be amended to read as follows:
58-11-61. The premium discount required by § 58-11-58 shall be effective for an insured for a
three-year period after successful completion of the approved course. However, the insurer may
require, as a condition of providing and maintaining the discount, that the insured:
(1) Has not been involved in an accident for which the insured is at fault;
(2) Has not been convicted, pled guilty, or nolo contendere to a moving traffic violation, or
to a traffic related alcohol or narcotics offense; and
(3) Has maintained a driving record free of violations and accidents for which the insured has
been found liable for a three-year period prior to course completion.
This section does not apply if the approved course is taken as specified by a court or other
governmental entity resulting from a moving traffic violation. "
Moved by: Johnston
Second by: Lederman
Action: Failed by roll call vote. (3-3-1-0)
Voting Yes: Adelstein, Buhl, Johnston
Voting No: Lederman, Nygaard, Nelson (Tom)
Excused: Rave
MOTION: DO PASS HB 1034
Moved by: Nygaard
Second by: Lederman
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DEFER HB 1034 TO THE 41
ST LEGISLATIVE DAY
Moved by: Adelstein
Second by: Buhl
Action: Failed by roll call vote. (3-3-1-0)
Voting Yes: Adelstein, Buhl, Johnston
Voting No: Lederman, Nygaard, Nelson (Tom)
Excused: Rave
THE MOTION TO DO PASS HB 1034
Moved by: Nygaard
Second by: Lederman
Action: FAILED BY ROLL CALL VOTE. (3-3-1-0)
Voting Yes: Lederman, Nygaard, Nelson (Tom)
Voting No: Adelstein, Buhl, Johnston
Excused: Rave
THE CHAIR DEFERRED HB 1034 UNTIL ANOTHER DAY
HB 1035: revise the process for the collection of the annual insurance company
examination assessment fee.
Presented by: Merle Scheiber, Division of Insurance
The gavel was turned over to Vice-Chair Nygaard
MOTION: DO PASS HB 1035
Moved by: Adelstein
Second by: Lederman
Action: Prevailed by roll call vote. (6-0-1-0)
Voting Yes: Adelstein, Buhl, Johnston, Lederman, Nygaard, Nelson (Tom)
Excused: Rave
The gavel was turned back to chair, Nelson
SB 103: revise certain provisions concerning special alcoholic beverage licenses
issued in conjunction with special events.
Presented by: Senator Larry Tidemann
Proponents: Yvonne Taylor, SD Municipal League
Tim Dougherty, Licensed Beverage Dealers of SD
Arnie Brown, self, Brookings
MOTION: AMEND SB 103
103ja
On page 2, line 2, of the printed bill, overstrike ", (6), or (16)" and insert "or (6)".
On page 2, line 17, overstrike "may" and insert "shall".
On page 2, line 18, after "license" insert ", including rules limiting the number of licenses that
may be issued to any person within any calendar year".
On page 2, line 20, before "Any" insert "Notwithstanding § 35-1-5.3, a municipality or county
may allow the sale of alcoholic beverages on public property or property owned by a nonprofit
corporation during a special event.".
Moved by: Nygaard
Second by: Lederman
Action: Prevailed by voice vote.
MOTION: DO PASS SB 103 AS AMENDED
Moved by: Adelstein
Second by: Buhl
Action: Prevailed by roll call vote. (6-0-1-0)
Voting Yes: Adelstein, Buhl, Johnston, Lederman, Nygaard, Nelson (Tom)
Excused: Rave
MOTION: PLACE SB 103 ON CONSENT CALENDAR
Moved by: Adelstein
Second by: Lederman
Action: Failed by voice vote.
MOTION: ADJOURN
Moved by: Johnston
Second by: Nygaard
Action: Prevailed by voice vote.
Lois Henry
____________________________
Committee Secretary
Tom Nelson, Chair
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