JOURNAL OF THE HOUSE

EIGHTY-THIRD SESSION




THIRTEENTH DAY




STATE OF SOUTH DAKOTA
House of Representatives, Pierre
Monday, January 28, 2008

     The House convened at 2:00 p.m., pursuant to adjournment, the Speaker presiding.

     The prayer was offered by the Chaplain, Deacon Roger Heidt, followed by the Pledge of Allegiance led by House page Jason Wynia.

     Roll Call: All members present except Reps. Gillespie and Juhnke who were excused.

APPROVAL OF THE JOURNAL

MR. SPEAKER:

     The Committee on Legislative Procedure respectfully reports that the Chief Clerk of the House has had under consideration the House Journal of the twelfth 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,
Thomas J. Deadrick, Chair

     Which motion prevailed.
HONORED GUESTS

     Speaker Deadrick introduced Matthew Michels from Yankton, South Dakota, who served as Speaker of the House of Representatives from 2003 to 2006. He spoke briefly and presided over the unveiling of his portrait.

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1194, 1211, and 1213 and returns the same with the recommendation that said bills do pass.

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1200 and 1212 and returns the same with the recommendation that said bills do pass and be placed on the consent calendar.

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB 1137 and returns the same with the recommendation that said bill be amended as follows:

1137ja

    On page 5, line 9, of the printed bill, after "$10" insert "per filing entity".

    And that as so amended said bill do pass.

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1204 which was deferred to the 36th Legislative Day.

Respectfully submitted,
Tim Rounds, Chair


Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB  1122, 1149, 1168, and 1201 and returns the same with the recommendation that said bills do pass.

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB 1130 and returns the same with the recommendation that said bill be amended as follows:

1130oa

    On page 1, line 7, of the printed bill, after "visitation" delete " , or " and insert ",".

    On page 1, line 7, remove the overstrikes from " or child support ".

    On page 1, line 8, after "guidelines." Insert " If the request is made in a child support proceeding, compliance with chapter 26-5B, including appropriate notice and an opportunity to be heard, if not previously provided, is required. ".

    On page 1, line 10, delete " currant " and insert " current ".

    And that as so amended said bill do pass.

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB 1253 and returns the same with the recommendation that said bill be amended as follows:

1253ra

    On page 1, line 11, of the printed bill, delete "or".

    On page 1, line 12, after "36-26" insert "; or

             (5)    Any other person that a court may deem appropriate".


1253rb

    On page 1, after line 12 of the printed bill, insert:

"

     However, the provisions of this section do not apply to any home study conducted pursuant to chapters 26-7A, 26-8A, 26-8B, and 26-8C.".

    And that as so amended said bill do pass.

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB  1074 which was tabled.

Respectfully submitted,
Joni M. Cutler, Chair

MESSAGES FROM THE SENATE

MR. SPEAKER:

     I have the honor to return herewith HB 1039, 1040, 1045, and 1050 which have passed the Senate without change.

Also MR. SPEAKER:

     I have the honor to transmit herewith SB 103, 128, 155, 156, 157, and 158 which have passed the Senate and your favorable consideration is respectfully requested.

Respectfully,
Trudy Evenstad, Secretary

CONSIDERATION OF REPORTS OF COMMITTEES

     Rep. Rhoden moved that the reports of the Standing Committees on

     Education on HB 1016 as found on pages 262 and 263 of the House Journal ; also

     Education on HB 1221 as found on page 264 of the House Journal ; also

     Judiciary on HB 1135 as found on pages 264 and 265 of the House Journal ; also



     Appropriations on HB 1067 as found on page 266 of the House Journal
; also

     Appropriations on HB 1080 as found on page 266 of the House Journal ; also

     Appropriations on HB 1081 as found on page 267 of the House Journal ; also

     Appropriations on HB 1082 as found on page 267 of the House Journal ; also

     Appropriations on HB 1083 as found on page 267 of the House Journal be adopted.

     Which motion prevailed and the reports were adopted.

FIRST READING OF SENATE BILLS AND JOINT RESOLUTIONS

     SB 103: FOR AN ACT ENTITLED, An Act to establish certain provisions regarding the use of replacement crash parts in the repair of certain motor vehicles.

     Was read the first time and referred to the Committee on Commerce.

     SB 128: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the modification of credit card agreements.

     Was read the first time and referred to the Committee on Commerce.

     SB 155: FOR AN ACT ENTITLED, An Act to provide state aid to education to certain school districts for certain students.

     Was read the first time and referred to the Committee on Education.

     SB 156: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding special motor vehicle license plates for veterans with a disability, prisoners of war, Pearl Harbor survivors, and Purple Heart recipients.

     Was read the first time and referred to the Committee on Transportation.

     SB 157: FOR AN ACT ENTITLED, An Act to revise the surety bond requirements for persons employed by mortgage brokerages.

     Was read the first time and referred to the Committee on Commerce.


     SB 158: FOR AN ACT ENTITLED, An Act to clarify certain provisions regarding the supervision, rehabilitation, and liquidation of insurers.

     Was read the first time and referred to the Committee on Commerce.

SECOND READING OF CONSENT CALENDAR ITEMS

     HB 1017: FOR AN ACT ENTITLED, An Act to revise certain provisions related to the taxation of products transferred electronically.

     Was read the second time.

     The question being "Shall HB 1017 pass as amended?"

     And the roll being called:

     Yeas 66, Nays 2, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Nays:
DeVries; Gosch

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a two-thirds majority of the members- elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1132: FOR AN ACT ENTITLED, An Act to revise certain provisions concerning the circumstances under which children may be held in temporary custody.

     Was read the second time.

     The question being "Shall HB 1132 pass?"

     And the roll being called:



     Yeas 68, Nays 0, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1052: FOR AN ACT ENTITLED, An Act to define an inpatient hospice and residential hospice as a health care facility.

     Was read the second time.

     The question being "Shall HB 1052 pass?"

     And the roll being called:

     Yeas 68, Nays 0, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.


     HB 1053: FOR AN ACT ENTITLED, An Act to place certain substances on the controlled substances schedule and to declare an emergency.

     Was read the second time.

     The question being "Shall HB 1053 pass?"

     And the roll being called:

     Yeas 68, Nays 0, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a two-thirds majority of the members- elect, the Speaker declared the bill passed and the title was agreed to.

SECOND READING OF HOUSE BILLS AND JOINT RESOLUTIONS

     HB 1038: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding accident reports and insurance premium increases involving the operators of emergency snow removal equipment.

     Having had its second reading was up for consideration and final passage.

     The question being on Rep. Peters' pending motion to amend HB 1038 as found on page 229 of the House Journal.

     Which motion prevailed.


     The question being "Shall HB 1038 pass as amended?"

     And the roll being called:

     Yeas 46, Nays 22, Excused 2, Absent 0

     Yeas:
Boomgarden; Brunner; Buckingham; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Elliott; Faehn; Glenski; Gosch; Hackl; Hargens; Hills; Hunt; Jerke; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Nelson; Novstrup (David); Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Putnam; Rausch; Rave; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vehle; Weems; Wick; Speaker Deadrick

     Nays:
Ahlers; Bradford; Burg; Dykstra; Engels; Feinstein; Gassman; Gilson; Halverson; Haverly; Heineman; Howie; Kirkeby; Moore; Noem; Novstrup (Al); Nygaard; Peters; Pitts; Rhoden; Vanneman; Willadsen

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1051: FOR AN ACT ENTITLED, An Act to revise certain provisions related to the payment of additional funds to consolidated school districts and to declare an emergency.

     Having had its second reading was up for consideration and final passage.

1051cd

     Rep. Hargens moved that HB 1051 be further amended as follows:

    On page 3, between lines 10 and 11 of the printed bill, insert:

"
     Section 3. That chapter 13-6 be amended by adding thereto a NEW SECTION to read as follows:

    Notwithstanding the provisions of §  13-6-92, if two or more school districts consolidate after July 1, 2007, and the secretary of education has issued an order to give effect to the reorganization plan pursuant to § 13-6-48 no later than December 31, 2007, the new school district is entitled to an additional six hundred dollars per fall enrollment as defined in §  13-13- 10.1, up to a maximum of four hundred fall enrollment from each school district or a prorated portion thereof from a partial school district as it existed prior to consolidation for the first year after consolidation. If two or more school districts consolidate after July 1, 2007, and the

secretary of education has issued an order to give effect to the reorganization plan pursuant to § 13-6-48 no later than December 31, 2007, the new school district is entitled to an additional four hundred dollars per fall enrollment, up to a maximum of four hundred fall enrollment from each school district or a prorated portion thereof from a partial school district as it existed prior to consolidation for the second year after consolidation. If two or more school districts consolidate after July 1, 2007, and the secretary of education has issued an order to give effect to the reorganization plan pursuant to § 13-6-48 no later than December 31, 2007, the new school district is entitled to an additional two hundred dollars per fall enrollment, up to a maximum of four hundred fall enrollment from each school district or a prorated portion thereof from a partial school district as it existed prior to consolidation for the third year after consolidation.

    Any school district that receives consolidation incentive payments pursuant to this section may not receive consolidation incentive payments pursuant to § 13-6-92. ".

     Which motion prevailed.

     The question being "Shall HB 1051 pass as amended?"

     And the roll being called:

     Yeas 57, Nays 11, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Engels; Faehn; Feinstein; Gilson; Glenski; Gosch; Halverson; Hargens; Haverly; Heineman; Hills; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Putnam; Rausch; Rave; Rhoden; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Vanneman; Vehle; Wick; Willadsen; Speaker Deadrick

     Nays:
Bradford; Dykstra; Elliott; Gassman; Hackl; Howie; Noem; Pitts; Rounds; Van Norman; Weems

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed.


     The question being on the title.

1051cta

     Rep. Hargens moved that the title to HB 1051 be amended as follows:

    On page 1, line 2, of the printed bill, delete "and to declare an emergency".

     Which motion prevailed and the title was so amended.

     HB 1071: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the permissible costs payable from the fire suppression special revenue fund.

     Having had its second reading was up for consideration and final passage.

     The question being "Shall HB 1071 pass?"

     And the roll being called:

     Yeas 66, Nays 1, Excused 3, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Nays:
Davis

     Excused:
Gillespie; Hackl; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1170: FOR AN ACT ENTITLED, An Act to allow pneumatic tires with retractable studs to be used upon highways year round.

     Was read the second time.

     The question being "Shall HB 1170 pass?"



     And the roll being called:

     Yeas 65, Nays 1, Excused 4, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Nays:
Moore

     Excused:
Gillespie; Hackl; Juhnke; Putnam

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1156: FOR AN ACT ENTITLED, An Act to revise the composition of local boards of equalization.

     Was read the second time.

     The question being "Shall HB 1156 pass?"

     And the roll being called:

     Yeas 21, Nays 47, Excused 2, Absent 0

     Yeas:
Brunner; Cutler; Davis; Dennert; Hackl; Halverson; Haverly; Hunt; Jerke; Krebs; Nelson; Novstrup (Al); Novstrup (David); Olson (Russell); Peters; Rausch; Rave; Steele; Weems; Wick; Willadsen

     Nays:
Ahlers; Boomgarden; Bradford; Buckingham; Burg; Carson; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hargens; Heineman; Hills; Howie; Kirkeby; Koistinen; Lucas; Lust; McLaughlin; Miles; Moore; Noem; Nygaard; Olson (Betty); Olson (Ryan); Pederson (Gordon); Pitts; Putnam; Rhoden; Rounds; Sigdestad; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Speaker Deadrick


     Excused:
Gillespie; Juhnke

     So the bill not having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill lost.

     HB 1174: FOR AN ACT ENTITLED, An Act to revise certain provisions related to the composition of water development district boards of directors.

     Was read the second time.

1174ta

     Rep. Rausch moved that HB 1174 be amended as follows:

    On page 1, line 14, of the printed bill, overstrike "real".

    On page 2, line 1, overstrike "property owner" and insert " voter ".

    On page 2, line 1, delete everything after " represented " .

    On page 2, delete line 2.

    On page 2, line 3, delete everything before "." .

     Which motion prevailed.

     The question being "Shall HB 1174 pass as amended?"

     And the roll being called:

     Yeas 66, Nays 2, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen

     Nays:
Rhoden; Speaker Deadrick


     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1090: FOR AN ACT ENTITLED, An Act to require that most records and applications regarding a child reference the names and addresses of both parents.

     Was read the second time.

1090ja

     Rep. Cutler moved that HB 1090 be amended as follows:

    On page 2, line 4, of the House Judiciary Committee engrossed bill, after "." insert "The provisions of this section do not apply to any written application for any type of annuity or insurance.".

     Which motion prevailed.

1090xa

     Rep. Rausch moved that HB 1090 be further amended as follows:

    On page 1, line 11, of the House Judiciary Committee engrossed bill, delete " The parents shall ".

    On page 1, delete lines 12 and 13.

     Which motion lost.

     The question being "Shall HB 1090 pass as amended?"

     And the roll being called:

     Yeas 39, Nays 29, Excused 2, Absent 0

     Yeas:
Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Dennert; Dreyer; Elliott; Engels; Feinstein; Gilson; Glenski; Gosch; Hackl; Halverson; Heineman; Hills; Hunt; Jerke; Krebs; Lucas; Lust; McLaughlin; Miles; Nelson; Nygaard; Olson (Ryan); Rave; Sigdestad; Steele; Street; Thompson; Van Etten; Van Norman; Vanneman; Vehle; Speaker Deadrick


     Nays:
Ahlers; Davis; DeVries; Dykstra; Faehn; Gassman; Hargens; Haverly; Howie; Kirkeby; Koistinen; Moore; Noem; Novstrup (Al); Novstrup (David); Olson (Betty); Olson (Russell); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rhoden; Rounds; Tidemann; Turbiville; Weems; Wick; Willadsen

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1169: FOR AN ACT ENTITLED, An Act to clarify certain provisions regarding the contractor's excise tax for isolated or occasional realty improvements.

     Was read the second time.

     The question being "Shall HB 1169 pass as amended?"

     And the roll being called:

     Yeas 47, Nays 21, Excused 2, Absent 0

     Yeas:
Ahlers; Boomgarden; Brunner; Cutler; Davis; DeVries; Dykstra; Engels; Faehn; Gassman; Gilson; Gosch; Hackl; Halverson; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lust; Miles; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Peters; Pitts; Rausch; Rave; Rhoden; Rounds; Sigdestad; Street; Thompson; Turbiville; Vanneman; Weems; Wick; Willadsen

     Nays:
Bradford; Buckingham; Burg; Carson; Dennert; Dreyer; Elliott; Feinstein; Glenski; Hargens; Lucas; McLaughlin; Moore; Pederson (Gordon); Putnam; Steele; Tidemann; Van Etten; Van Norman; Vehle; Speaker Deadrick

     Excused:
Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1181: FOR AN ACT ENTITLED, An Act to revise certain provisions concerning information related to the assessment of property that is to be provided by the director of equalization.

     Was read the second time.



     The question being "Shall HB 1181 pass as amended?"

     And the roll being called:

     Yeas 59, Nays 8, Excused 3, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; McLaughlin; Miles; Moore; Nelson; Noem; Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Pitts; Putnam; Rave; Rhoden; Rounds; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Nays:
Engels; Hargens; Lust; Novstrup (Al); Novstrup (David); Peters; Rausch; Sigdestad

     Excused:
Cutler; Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

    Speaker Pro tempore Rave now presiding.

     HB 1008: FOR AN ACT ENTITLED, An Act to update and revise certain provisions relating to the Abstracters' Board of Examiners.

     Was read the second time.

     The question being "Shall HB 1008 pass?"

     And the roll being called:

     Yeas 67, Nays 0, Excused 3, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Cutler; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen


     Excused:
Gillespie; Juhnke; Speaker Deadrick

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

    Speaker Deadrick now presiding.

     HB 1114: FOR AN ACT ENTITLED, An Act to revise certain provisions concerning the definition and operation of farm wineries.

     Was read the second time.

     The question being "Shall HB 1114 pass?"

     And the roll being called:

     Yeas 66, Nays 1, Excused 3, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Hargens; Haverly; Heineman; Hills; Howie; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Moore; Nelson; Noem; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Nays:
Hunt

     Excused:
Cutler; Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1118: FOR AN ACT ENTITLED, An Act to authorize the issuance of special off-sale package wine dealers licenses.

     Was read the second time.


     The question being "Shall HB 1118 pass?"

     And the roll being called:

     Yeas 61, Nays 6, Excused 3, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Nelson; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Vanneman; Vehle; Weems; Wick; Willadsen; Speaker Deadrick

     Nays:
Carson; Hargens; Moore; Noem; Olson (Russell); Van Norman

     Excused:
Cutler; Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     HB 1126: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the issuance of on-sale wine licenses and the sale of wine.

     Was read the second time.

     The question being "Shall HB 1126 pass?"

     And the roll being called:

     Yeas 63, Nays 4, Excused 3, Absent 0

     Yeas:
Ahlers; Boomgarden; Bradford; Brunner; Buckingham; Burg; Carson; Davis; Dennert; DeVries; Dreyer; Dykstra; Elliott; Engels; Faehn; Feinstein; Gassman; Gilson; Glenski; Gosch; Hackl; Halverson; Haverly; Heineman; Hills; Howie; Hunt; Jerke; Kirkeby; Koistinen; Krebs; Lucas; Lust; McLaughlin; Miles; Nelson; Novstrup (Al); Novstrup (David); Nygaard; Olson (Betty); Olson (Russell); Olson (Ryan); Pederson (Gordon); Peters; Pitts; Putnam; Rausch; Rave; Rhoden; Rounds; Sigdestad; Steele; Street; Thompson; Tidemann; Turbiville; Van Etten; Van Norman; Vanneman; Vehle; Wick; Willadsen; Speaker Deadrick

     Nays:
Hargens; Moore; Noem; Weems


     Excused:
Cutler; Gillespie; Juhnke

     So the bill having received an affirmative vote of a majority of the members-elect, the Speaker declared the bill passed and the title was agreed to.

     Rep. Rhoden moved that the balance of the calendar including HB 1009, 1112, 1123, 1064, 1075, 1240, 1057, 1058, 1073, 1099, 1100, 1138, 1241, 1065, 1131, 1068, 1144, 1218, 1180, and 1193 and SB 15, 2, 3, and 34 be deferred to Tuesday, January 29th, the 14th legislative day.

     Which motion prevailed.

     There being no objection, the House reverted to Order of Business No. 5.

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1005 and returns the same with the recommendation that said bill be amended as follows:

1005fa

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

"
     Section 1. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Notwithstanding the provisions of §  10-6-74, if any nonagricultural or owner-occupied property sells for more than one hundred fifty percent of its assessed value after November 1, 2008, the sale of such property shall be used to value other real property if the sale is an arms- length transaction. However, for the taxable valuation for the taxes payable in 2011, 2012, 2013, 2014, and 2015, no nonagricultural or owner-occupied property's valuation may increase more than five percent per year because of such sales. The sales of nonagricultural and owner- occupied property may only be used in a sales ratio study as allowed by this section.

     Section 2. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     For the taxes payable in 2011, 2012, and 2013, the total taxable value of agricultural land within any county may not increase more than fifteen percent in any year.

     Section 3. That sections 1 and 2 of this Act be repealed on July 1, 2015.



     Section 4. That §   10-6-74 be repealed on July 1, 2014.

     Section 5. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Notwithstanding the provisions of §  10-6-33, beginning on July 1, 2009, agricultural land shall be assessed based on its agricultural income value on a per acre basis. The agricultural income value of agricultural land shall be determined on the basis of productivity and the annual earnings capacity of the agricultural land. The productivity of agricultural land and its annual earning capacity shall be based on data collected and analyzed pursuant to sections 5 to 10, inclusive, of this Act.

     Agricultural income value is defined as the capitalized average annual earning capacity on a per acre basis which has been adjusted by an amount that reflects the landowner's share of the gross return. The capacity of cropland to produce agricultural products shall be based on the income from crops or plants produced on the land. The capacity of noncropland to produce agricultural products shall be based on the animal unit carrying capacity of the land. For the purpose of this section, annual earning capacity for:

             (1)    Cropland is twenty-four percent of the annual gross income capacity of the land; and

             (2)    Noncropland is twenty-five percent of the annual gross income capacity of the land.

     The annual earning capacity shall be capitalized at a rate of six percent to determine the agricultural income value.

     Section 6. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     The secretary of revenue and regulation shall enter into contracts with South Dakota State University and, if necessary, the South Dakota Agricultural Statistics Service for the purpose of creating a database to determine the agricultural income value of agricultural land by county. The cropland data shall include: acres planted, acres harvested, yield per acre, and locally adjusted crop prices. Locally adjusted crop prices shall be established by adjusting statewide prices. The noncropland data shall include: rangeland acres, pastureland acres, rangeland AUM's per acre, pastureland AUM's per acre, grazing season data, and statewide cow and calf prices. The secretary shall have such data collected for 2001, which will serve as the first year of the database, and each year thereafter. The database shall consist of the most recent eight years of data that have been collected and the two years, one year representing the highest agricultural income value and one year representing the lowest agricultural income value, shall be discarded from the database. The database for the 2010 assessment for taxes payable in 2011 shall consist of data from 2001 to 2008, inclusive, and the database for each assessment year thereafter shall be adjusted accordingly. The economics department shall provide the data for each county to the secretary of revenue and regulation by June first of each year.

     Section 7. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:


     The economics department of South Dakota State University shall submit recommendations to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force by November 1, 2008, regarding factors to use for the percentage of annual earning capacity to be used to determine the agricultural income value of the land pursuant to section 5 of this Act and other provisions used to assess agricultural land that will provide the least amount of shift between cropland and noncropland on a statewide basis. Thereafter, the economics department shall submit such recommendations, if any, to the task force by September first of each year.

     Section 8. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Before July first each year, the secretary of revenue and regulation shall annually provide each director of equalization the agricultural income value for each county as computed pursuant to section 5 of this Act. The director of equalization shall annually determine the assessed value of agricultural land. The assessed value of agricultural land may be adjusted by the following factors:

             (1)    The capacity of the land to produce agricultural products as defined in §  10-6-33.2; and

             (2)    The location, size, soil survey statistics, terrain, and topographical condition of the land including the climate, accessibility, and surface obstructions which can be documented.

     Section 9. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Agricultural land shall be divided by the director of equalization into categories, including cropland and noncropland. Each category shall be divided into classes based on soil classification standards developed by the United States Department of Agriculture Natural Resources Conservation Service.

     Section 10. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     Buildings and structures, other than normally occupied dwellings on agricultural land and automobile garages or portions of buildings used as automobile garages, which are used exclusively for agricultural purposes and situated on agricultural land, are hereby specifically classified for tax purposes as agricultural property and shall be assessed as similar nonagricultural property.

     Section 11. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     The agricultural income value for agricultural land as determined by sections 5 to 10, inclusive, of this Act represents the market value of agricultural land, and the Department of Revenue and Regulation shall provide the director of equalization of each county the factor of

adjustment necessary for the computation required pursuant to § §  10-3-41, 10-12-31.1, 10-12-42, and 10-13-37.

     Section 12. That chapter 10-6 be amended by adding thereto a NEW SECTION to read as follows:

     There is hereby established the Agricultural Land Assessment Implementation and Oversight Advisory Task Force. The task force shall consist of the following twelve members:

             (1)    The speaker of the House of Representatives shall appoint four members of the House of Representatives, no more than two of whom may be from one political party;

             (2)    The speaker of the House of Representatives shall appoint two members of the general public;

             (3)    The president pro tempore of the Senate shall appoint four members of the Senate, no more than two of whom may be from one political party; and

             (4)    The president pro tempore of the Senate shall appoint two members of the general public.

    The initial appointments shall be made no later than July 1, 2008, and shall serve until January 12, 2009. The speaker of the House of Representatives and president pro tempore of the Senate before the close of each regular session of the Legislature held in odd-numbered years shall appoint members to the task force for a term of two years. If there is a vacancy on the task force, the vacancy shall be filled in the same manner as the original appointment.

     The task force shall advise the department regarding the rules promulgated by the department to administer the provisions concerning the assessment and taxation of agricultural lands and shall review the implementation of the provisions of law concerning the assessment and taxation of agricultural land. The task force shall report to the Senate and House of Representatives and may submit a copy of its report to the Governor. The task force may present draft legislation and policy recommendations to the Legislative Research Council Executive Board.

     The task force shall make recommendations in the following areas:

             (1)    The proper percentage of annual earning capacity to be used to determine the agricultural income value for subdivisions (1) and (2) of section 5 of this Act; and

             (2)    The proper capitalization rate in order to have total taxable valuation for the taxes payable in 2011 from agricultural property be not more than total taxable valuation for the taxes payable in 2010 from agricultural property plus the estimated growth in agricultural property value in 2010.


     Section 13. That § 10-6-33.13 be amended to read as follows:

     10-6-33.13.   The secretary of revenue and regulation may promulgate rules pursuant to chapter 1-26 concerning the:

             (1)      Collection and tabulation of information required to determine median appraisal or sales assessment ratio, and coefficient of dispersion;

             (2)      Criteria to be included in a compliance audit of assessment practices; and

             (3)      Conditions under which a certificate of compliance may be issued to a county ;

             (4)    Procedures for determining the valuation of agricultural buildings and structures;

             (5)    Procedures for determining the valuation of dwellings on agricultural land and automobile garages or portions of buildings used as automobile garages;

             (6)    Application of cropland and noncropland income values;

             (7)    Application of soil classification standards; and

             (8)    Procedures for making adjustments to the value of agricultural land pursuant to sections 5 to 10, inclusive, of this Act.

     Before the secretary promulgates any rules pursuant to subdivision (4) to (8), inclusive, the secretary shall present the proposed rules to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force established pursuant to section 12 of this Act .

     Section 14. That § 10-12-31.1 be amended to read as follows:

     10-12-31.1.   Notwithstanding other provision of law, when applying the levies for school purposes, the county director of equalization of each county shall adjust the level of assessment in that district so that the level of assessment as indicated by the most recent assessment to sales ratio as provided for in § 10-11-55 and the most recent assessment to full agricultural land value ratio agricultural income value as provided for in § 10-11-57 sections 5 to 10, inclusive, of this Act in that district are equal to eighty-five percent of market value or agricultural income value . The Department of Revenue and Regulation shall provide the director of equalization of each county all of the factors of adjustment necessary for the computations required in this section.

     Section 15. That § 10-6-33.3 be amended to read as follows:

     10-6-33.3.   Land or improvement on land within an operating unit which is not used incident to an agricultural pursuit shall be separately listed and assessed and the income therefrom shall not be used in determining the values for the purposes of §§ 10-6-33.1 and 10-6-33.2 .


     Section 16. That § 10-6-33.5 be amended to read as follows:

     10-6-33.5.   The assessment, valuation, equalization, and taxation of school and endowment lands shall be at the same level and on the same basis as lands assessed, valued, and equalized according to §§ 10-6-33.1 to 10-6-33.4, inclusive sections 5 to 10, inclusive, of this Act .

     Section 17. That § 10-6-33.7 be amended to read as follows:

     10-6-33.7.   Agricultural land in each county shall be divided into the eight classes defined by the United States Department of Agriculture's soil conservation service as published in its soil survey for each county. The county director of equalization shall, based on the agricultural lands soil survey classification, determine a value for each soil type. The value for each soil type shall be determined from sales of similar land based upon its soil survey classification, and as adjusted for the factors contained in subdivision 10-6-33.1(2). The sales used shall be sales of agricultural land that are sold for agricultural purposes.

     Section 18. That § 10-6-31.3 be amended to read as follows:

     10-6-31.3.   For tax purposes, land is agricultural land if it meets two of the following three criteria:

             (1)      At least thirty-three and one-third percent of the total family gross income of the owner is derived from the pursuit of agriculture as defined in subdivision (2) of this section or it is a state-owned public shooting area or a state-owned game production area as identified in § 41-4-8 and it is owned and managed by the Department of Game, Fish and Parks;

             (2)      Its principal use is devoted to the raising and harvesting of crops or timber or fruit trees, the rearing, feeding, and management of farm livestock, poultry, fish, or nursery stock, the production of bees and apiary products, or horticulture, all for intended profit pursuant to subdivision (1) of this section. Agricultural real estate also includes woodland, wasteland, and pasture land, but only if the land is held and operated in conjunction with agricultural real estate as defined and it is under the same ownership;

             (3)      It consists of not less than twenty acres of unplatted land or is a part of a contiguous ownership of not less than eighty acres of unplatted land. The same acreage specifications apply to platted land, excluding land platted as a subdivision, which is in an unincorporated area. However, the board of county commissioners may increase the minimum acre requirement up to one hundred sixty acres.

     However, for tax purposes, land is not agricultural land if the land is classified pursuant to § 10-6-33.14 as a nonagricultural acreage.

     Section 19. That § 10-13-37.1 be amended to read as follows:

     10-13-37.1.   For purposes of § 10-6-33.24 and §§ 10-3-41, 10-12-31.1, and 10-13-37, the secretary of revenue and regulation shall calculate a factor for each county for the agricultural

and nonagricultural valuations. The factor shall be calculated by using the sales of arms-length transactions and the assessments from the preceding assessment year. The secretary shall take into consideration any reappraisals completed by the director of equalization. If there are less fewer than fifteen sales of either class , the secretary shall use the preceding year's sales of that class with current assessments. In the case of agricultural land, sales may also be bridged in from adjoining counties if there are less than fifteen sales.

     Section 20. That § 13-11-10 be amended to read as follows:

     13-11-10.   In implementing the terms of § 13-11-9, a separate weighted average tax levy of the receiving districts shall be calculated for agricultural property, nonagricultural acreage property, owner-occupied single-family dwelling property, and for nonagricultural property for each sending school district as follows:

             (1)      The levy per thousand dollars of taxable valuation for agricultural property for each receiving school district shall be multiplied by the number of children from the sending school district to whom the receiving school district is providing educational services;

             (2)      Add together the products from subdivision (1) for each receiving school district;

             (3)      Divide the sum from subdivision (2) by the total number of students that the contracting school district is sending to the receiving school districts pursuant to § 13-15-1.3. The quotient is the weighted average tax levy per one thousand dollars of taxable valuation for agricultural property;

             (4)      The weighted average tax levy per thousand dollars of taxable valuation for nonagricultural acreage, owner-occupied single-family dwellings , and nonagricultural property shall be obtained by repeating the procedure outlined in subdivisions (1) to (3), inclusive, for each class of property; and

             (5)      The sum of the levies assessed for all funds in the sending district shall be equal to or greater than the sum of all levies for all funds in the receiving district.

     The above calculations do not include students receiving educational services from an out-of-state school district nor the tax levy of any out-of-state school district.

     Section 21. That § 10-12-42 be amended to read as follows:

     10-12-42.   For taxes payable in 2008 2011 and each year thereafter, the levy for the general fund of a school district shall be as follows:

             (1)      The maximum tax levy shall be nine dollars and eleven cents per thousand dollars of taxable valuation subject to the limitations on agricultural property as provided in subdivision (2) of this section, and owner-occupied property as provided for in subdivision (3) of this section , and nonagricultural acreage property as provided for in subdivision (4) of this section ;

             (2)      The maximum tax levy on agricultural property for such school district shall be two dollars and seventy-one cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies; and

             (3)      The maximum tax levy for an owner-occupied single-family dwelling as defined in § 10-13-40, for such school district may not exceed four dollars and twenty-six cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies ; and

             (4)      The maximum tax levy on nonagricultural acreage property as defined in § 10-6- 33.14, for such school district shall be three dollars and seventy-one cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in this section, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies .

     All levies in this section shall be imposed on valuations where the median level of assessment represents eighty-five percent of market value as determined by the Department of Revenue and Regulation. These valuations shall be used for all school funding purposes. If the district has imposed an excess levy pursuant to § 10-12-43, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section.

     Section 22. That § 10-6-33.25 be amended to read as follows:

     10-6-33.25.   For the purposes of § 10-6-33.24, the agricultural income value shall be determined using capitalized annual cash rent. The annual cash rent is the annual cash rent, excluding the per acre tax on agricultural land, determined through an analysis of arms-length rental agreements collected within the county in the three years prior to the year for which the agricultural income value is being determined. The agricultural income value of cropland shall be based on average rents over a three-year period for cropland under natural conditions. The agricultural income value of noncropland shall be based on average rents over a three-year period for noncropland under natural conditions. However, no arms-length rental agreements for irrigated land may be used to determine the annual cash rent pursuant to this section. The annual cash rent shall be capitalized at seven and three-fourths six and fifteen hundredths percent.

     The secretary of revenue and regulation may enter into a contract for the collection of cash rent information by county. Cash rent information shall be adjusted by soil survey statistics, if available, and pursuant to § 10-6-33.26.

     Section 23. That § §   10-6-33.1 , 10-6-33.4, 10-6-33.6, § §  10-6-33.14 to 10-6-33.20, inclusive, and § §  10-6-33.23 to 10-6-33.27, inclusive, be repealed.



     Section 24. That sections 14 to 21, inclusive, and section 23 are effective on July 1, 2009."

    And that as so amended said bill do pass.

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1006 and returns the same with the recommendation that said bill be amended as follows:

1006fc

    On page 1 of the printed bill, delete lines 4 to 12, inclusive, and insert:

"
     Section 1. That §   13-13-72.1 be amended to read as follows:

     13-13-72.1.   Any adjustments in the levies specified in subdivision 13-13-10.1(6) §  10-12-42 made pursuant to §§ 13-13-71 and 13-13-72 shall be based on maintaining the relationship between statewide local effort as a percentage of statewide local need in the fiscal year succeeding the fiscal year in which the adjustment is made. In addition to the adjustments in the levies provided by this section, the levies shall also be annually adjusted as necessary to reduce the portion of local need paid by local effort by an amount equal to nine million dollars from those funds transferred into the property tax reduction fund pursuant to § 10-50-52 subsequent to July 1, 2007. In addition to the adjustments in the levies provided by this section, the levies for nonagricultural property and owner-occupied single-family dwellings shall also be adjusted as necessary to account for the additional increase in the total assessed value for nonagricultural property and owner-occupied single-family dwellings pursuant to the phasing out and repeal of the provisions provided in §  10-6-74.

     Section 2. That § 13-10-6 be amended to read as follows:

     13-10-6.   For the purpose of continuing a fund for the payment of pensions to retired employees of a school districts which shall have district that has established such system, such districts the school district may levy an annual tax not exceeding thirty cents per thousand dollars of taxable valuation of such the school district for the current year. Such The levy may not be included in determining the tax levy limitation of such the school district provided by law. Moneys collected from such the tax shall be kept by the business manager in a special pension fund and shall may not be used for any other purpose except upon discontinuance of such the pension system by the school district, in which case any unexpended balance shall be transferred to the general fund.

     For taxes payable in 2011, the total amount of revenue payable from the levy provided in this section may not increase more than the lesser of three percent or the index factor, as defined in §  10-13-38, over the maximum amount of revenue that could have been generated for the taxes payable in 2010. After applying the index factor, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property,

annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except §  10-6-31.4, only if assessed the same as property of equal value.

     For taxes payable in 2012, 2013, 2014, and 2015, the total amount of revenue payable from the levy provided in this section may not increase more than the lesser of three percent or the index factor, as defined in §  10-13-38, over the maximum amount of revenue that could have been generated for the taxes payable in 2010 plus any unused index factor from the previous years. After applying the index factor, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except §  10-6-31.4, only if assessed the same as property of equal value.

     Any school district created or reorganized after January 1, 2009, is exempt from the limitation provided by this section for a period of two years immediately following its creation.

     For taxes payable in 2011, 2012, 2013, 2014, and 2015, the levy limitation of thirty cents per thousand dollars of taxable valuation does not apply to any school district. ".

    On page 2, line 14, delete " 2010 " and insert " 2011 ".

    On page 2, line 17, delete " 2009 " and insert " 2010 ".

    On page 3, line 1, delete " 2008 " and insert " 2009 ".

    On page 3, line 4, delete " 2008 " and insert " 2009 ".

    On page 3, line 6, delete " 2011, 2012, 2013, and 2014 " and insert " 2012, 2013, 2014, and 2015 ".

    On page 3, line 9, delete " 2009 " and insert " 2010 ".

    On page 3, line 18, delete " 2008 " and insert " 2009 ".

    On page 3, line 20, delete " 2008 " and insert " 2009 ".

    On page 3, line 23, delete " 2010, 2011, 2012, 2013, and 2014 " and insert " 2011, 2012, 2013, 2014, and 2015 ".

    On page 4, line 16, delete " 2010 " and insert " 2011 ".

    On page 4, line 19, delete " 2009 " and insert " 2010 ".

    On page 5, line 1, delete " 2008 " and insert " 2009 ".


    On page 5, line 3, delete " 2011, 2012, 2013, and 2014 " and insert " 2012, 2013, 2014, and 2015 ".

    On page 5, line 6, delete " 2009 " and insert " 2010 ".

    On page 5, line 13, delete " 2010, 2011, 2012, 2013, and 2014 " and insert " 2011, 2012, 2013, 2014, and 2015 ".

    On page 6, line 6, delete " 2010 " and insert " 2011 ".

    On page 6, line 7, delete " 2009 " and insert " 2010 ".

    On page 6, line 15, delete " 2011, 2012, 2013, and 2014 " and insert " 2012, 2013, 2014, and 2015 ".

    On page 9, line 21, delete " 2010, 2011, 2012, 2013, and 2014 " and insert " 2011, 2012, 2013, 2014, and 2015 ".

    And that as so amended said bill do pass.

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB  1187 and 1252 which were deferred to the 36th Legislative Day.

Respectfully submitted,
Larry Rhoden, Chair

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1203 and returns the same with the recommendation that said bill do pass.

Respectfully submitted,
Tim Rounds, Chair

Also MR. SPEAKER:

     The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared HB 1039, 1040, 1045, and 1050 and finds the same correctly enrolled.

Respectfully submitted,

Thomas J. Deadrick, Chair



SIGNING OF BILLS

     The Speaker publicly read the title to

     HB 1039: FOR AN ACT ENTITLED, An Act to  remove a segment of State Highway 25 in Hanson County from the state trunk highway system.

     HB 1040: FOR AN ACT ENTITLED, An Act to  remove a segment of State Highway 314 in Yankton County from the state trunk highway system.

     HB 1045: FOR AN ACT ENTITLED, An Act to  revise certain provisions related to the calculation of state aid to special education.

     HB 1050: FOR AN ACT ENTITLED, An Act to  revise certain provisions regarding Indian education.

     And signed the same in the presence of the House.

COMMEMORATIONS

     HC 1002  Introduced by:  Representatives Lucas, Ahlers, Boomgarden, Bradford, Brunner, Burg, Carson, Cutler, Davis, Deadrick, Dennert, DeVries, Dreyer, Dykstra, Engels, Feinstein, Gassman, Gilson, Glenski, Gosch, Hackl, Halverson, Hargens, Haverly, Heineman, Hills, Howie, Hunt, Jerke, Kirkeby, Koistinen, Krebs, Lust, McLaughlin, Miles, Moore, Nelson, Noem, Novstrup (Al), Novstrup (David), Nygaard, Olson (Betty), Olson (Russell), Olson (Ryan), Pederson (Gordon), Peters, Pitts, Putnam, Rausch, Rave, Rhoden, Rounds, Sigdestad, Steele, Street, Thompson, Tidemann, Turbiville, Van Norman, Vanneman, Vehle, Weems, Wick, and Willadsen and Senators Bartling, Abdallah, Albers, Apa, Dempster, Duenwald, Gant, Garnos, Gray, Greenfield, Hansen (Tom), Hanson (Gary), Hauge, Heidepriem, Hoerth, Hundstad, Hunhoff, Jerstad, Katus, Kloucek, Knudson, Koetzle, Lintz, Maher, McCracken, McNenny, Napoli, Nesselhuf, Olson (Ed), Peterson (Jim), Schmidt (Dennis), Smidt (Orville), Sutton, and Turbak Berry

         A LEGISLATIVE COMMEMORATION,  Honoring Louie Krogman of White River, South Dakota, for setting the all-time scoring record for South Dakota boys' high school basketball.

     WHEREAS,  on December 20, 2007, Louie Krogman broke the fifty-year-old all-time scoring record of 2,825 points set by Don Jacobsen of Lake Norden when Louie scored twenty- eight points in White River's boys basketball game against Pine Ridge in the Lakota Nation Invitational Tournament, and set the new scoring record at 2,831 points; and

     WHEREAS,  Louie Krogman possesses a deep desire for the game of basketball, participating in the sport at a young age and crediting much of his success to his family for supporting him throughout his career; and

     WHEREAS,  Louie Krogman's basketball strengths including his ball handling, passing, court awareness, and competitive nature have led him to the opportunity to participate in Division I basketball at the University of South Dakota:

     NOW, THEREFORE, BE IT COMMEMORATED,  by the Eighty-Third Legislature of the State of South Dakota, that Louie Krogman be honored for setting the all-time scoring record for South Dakota boys' high school basketball.

     Rep. Pederson moved that the House do now adjourn, which motion prevailed and at 4:05 p.m. the House adjourned.

Karen Gerdes, Chief Clerk