87^th Legislative Session _ 2012

Committee: Senate State Affairs

Monday, February 13, 2012

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Adelstein
P    Cutler
P    Frerichs
P    Gray
P    Johnston
P    Rave
P    Tieszen
P    Olson (Russell), Vice-Chair
P    Rhoden, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Larry Rhoden, Chair.

MOTION:    TO APPROVE THE MINUTES OF FRIDAY, FEBRUARY 10, 2012

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

        SB 147: limit compensatory damages in civil actions related to death or injury.

Presented by:    Senator Deb Peters (Handout: 1)
Proponents:    Dean Krogman, SD State Medical Association
Opponents:    Roger Tellinghuisen, SD Trial Lawyers Association
        Kit McCahren, Pierre, Self
        Dave Hewett, SD Association of Healthcare Organizations

MOTION:    DEFER SB 147 TO THE 41^ST LEGISLATIVE DAY

Moved by:    Adelstein
Second by:    Frerichs
Action:    Prevailed by roll call vote. (8-1-0-0)

Voting Yes:    Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Olson (Russell), Rhoden

Voting No:    Tieszen

        SB 105: impact education in South Dakota.

Presented by:    Senator Russell Olson

MOTION:    DO PASS SB 105

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

Voting Yes:    Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Tieszen, Olson (Russell), Rhoden

        SB 188: provide for the enhancement of economic development in South Dakota.

Presented by:    Senator Russell Olson
Proponents:    Jack Warner, Board of Regents
        Jim Abbott, University of South Dakota
        Mark Lee, Sioux Falls University Center
        Julie Johnson, Absolutely Aberdeen

MOTION:    AMEND SB 188

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

" Section 1. The Legislature finds that to increase research and technology-related economic activity in South Dakota and to expand the opportunities for South Dakota faculty members, researchers, and students to participate in the application of research results and technological innovations in commerce, government, or public service, it is critically important to encourage research opportunities and programs within the regental system. To these ends, the Legislature intends that this Act be construed as authorizing and encouraging coordinated public and private investments in facilities situated on lands controlled by the Board of Regents and designed to support

commercial application of research results and technological innovations.

Section 2. Terms as used in this Act mean:

(1) "Private party lessee or contractor," a business, a nonprofit corporation, or a research park corporation authorized by lease, contract, or agreement with the Board of Regents to construct, finance, operate, maintain, reconstruct, remodel, and manage, at its expense and risk, any research park established pursuant to this Act;

(2) "Research," an investigation aimed at the discovery of new knowledge to create a new product or service, a new process or technique, or to bring about a significant improvement in an existing product or process;

(3) "Research park," a planned real estate development designed to promote the practical application of university research, to aid the transfer of knowledge, technology, and business skills through collaboration between universities and industry, government, or other organizations that apply research or technology, and to assist in the growth of research-based and technology-led economic development for the community, region, and state, by bringing together universities, institutes, laboratories, businesses, and governmental and other organizations devoted to testing, research, and development activities, to the commercial, governmental, or public policy application of research results or technological innovation, or to the management of research or technology-based enterprises, agencies, or organizations. The term includes such enterprises as may be necessary to support the activities of the primary tenants, their staff, or visitors; and

(4) "Research park corporation," any nonprofit corporation formed pursuant to this Act and Title 47 for the purpose of constructing, financing, developing, maintaining, and operating a research park.

Section 3. The Board of Regents may utilize state lands under its control for the construction, development, maintenance, and operation of research parks.

Section 4. A research park authorized by this Act may accommodate all kinds of facilities, laboratories, businesses, or organizations usually found at research parks affiliated with universities.

Section 5. If any lands used for purposes of a research park are determined to be subject to the school and public lands trust established pursuant to S.D. Const., Art. VIII, § 7, then:

(1) A civil, state, religious, or public organization seeking to develop and to operate a research park may make application to the commissioner of school and public lands for conveyance pursuant to § 5-9-34. If the Board of Regents agrees to transfer possession of the land, the commissioner may convey defeasible title as provided in § 5-9-35 for the

purpose of operating a research park. Upon any reversion, the land shall once again be placed under the control of the Board of Regents as part of the campus from which it was originally severed; or

(2) The Board of Regents may select other lands under its control of equal value, as determined by the commissioner of school and public lands, and exchange such other lands for those comprising the research park in order to maintain the principal of the school and public lands trust.

Section 6. Any mineral rights to state lands on which a research park has been established shall be administered to support research park operations.

Section 7. Notwithstanding any other provision of law, including chapter 5-7, the Board of Regents when approving a research park lease or sublease may lease such portions of the mineral interests reserved to the State of South Dakota in the lands occupied by the research park as may be necessary to permit the research park and its tenants to use geothermal resources for heating or cooling on-site facilities. The mineral interests may be leased on behalf of the State of South Dakota acting by and through the Board of Regents in a manner and upon terms acceptable to the board.

Section 8. The commissioner of school and public lands may not authorize the lease of mineral rights if exploitation of such rights would disturb the use of the research park, nor authorize construction of dams, canals, water ditches, or laterals if such structures would impair the use of the research park.

Section 9. The Board of Regents may enter into any lease, contract, or agreement with a business, a nonprofit corporation, or a research park corporation to permit that entity, at its expense and risk, to construct, finance, maintain, and operate any research park established pursuant to this Act.

Section 10. No lease, contract, or agreement may be construed to authorize the private party lessee or contractor, or any subtenant, creditor, trustee, receiver, lien holder, heir, assignee, or other party claiming an interest or right through such private party lessee or contractor, to use or to permit the use of the research park for purposes other than those specified in this Act.

Section 11. The lease, contract, or agreement may permit the private party lessee or contractor, or other parties claiming an interest or right through them, to pledge for commercially reasonable periods of time such rights of use or occupancy as may be possessed in order to obtain financing. However, no such pledge impairs the reversionary interests of the Board of Regents.

Section 12. No lease granted pursuant to this Act may have a duration exceeding ninety-nine years.

Section 13. Each lease, contract, or agreement shall contain provisions that require commercially

reasonable performance by the private lessee or contractor. Each lease, contract, or agreement shall contain provisions that reserve to the Board of Regents the power to enforce the requirements of this Act and of any leases, contracts, or agreements issued pursuant to it, which reserved powers shall include the power of termination.

Section 14. Notwithstanding any other provision oflaw to the contrary, upon termination of any such lease, contract, or agreement, the Board of Regents may take title to all improvements comprising the research park.

Section 15. Nothing in this Act authorizes the Board of Regents or any entity operating a research park under a lease, contract, or agreement with the Board of Regents to contract a debt on behalf of, or in any way to obligate, the State of South Dakota, or to pledge, assign, or encumber in any way, or to permit the pledging, assigning, or encumbering in any way, of appropriations made by the Legislature of the State of South Dakota. No debt or liability of a research park is an indebtedness, legal or moral, of the State of South Dakota, and no creditor may have recourse against the State of South Dakota or any fund created or maintained directly or indirectly from state taxation.

Section 16. The Board of Regents may form one or more research park corporations, separate and apart from the state, to construct, finance, develop, maintain, and operate research parks or economic development initiatives that support the teaching, research, or service mission of the university system by expanding opportunities for South Dakota faculty members, researchers, and students to participate in the application of research results and technological innovations in commerce, government, or public service.

Section 17. Each research park corporation formed pursuant to section 16 of this Act shall be governed by, and all of the corporation's functions, powers, and duties shall be exercised by, a board appointed by the Board of Regents. Each research park corporation shall have the Board of Regents as its sole member. Members of the board may include university presidents, regents, university officers or employees, and other persons selected by the Board of Regents.

Section 18. No portion of the net earnings realized by any research park corporation formed pursuant to section 16 of this Act may inure to any director or officer of the corporation or to any private entity or individual.

Section 19. No research park corporation formed pursuant to section 16 of this Act may be deemed an agency, public body, or other political subdivision of South Dakota, and no research park corporation formed pursuant to section 16 of this Act may borrow money secured by the State of South Dakota.

Section 20. No research park corporation formed pursuant to section 16 of this Act is subject to statutes or rules regulating the conduct of public bodies, including those relating to personnel, procurement of goods and services, board meetings, disposition or acquisition of property, capital

outlays, per diem and mileage, and inspection of records. Nothing in this section relieves a research park corporation of the obligation to conform to criminal laws or other statutes of general application.

Section 21. A research park corporation formed pursuant to section 16 of this Act shall have all rights, powers, and privileges granted to nonprofit corporations pursuant to Title 47 which are necessary and convenient to carry out and to effectuate the provisions of this Act."

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

MOTION:    DO PASS SB 188 AS AMENDED

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

Voting Yes:    Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Tieszen, Olson (Russell), Rhoden

MOTION:    AMEND TITLE OF SB 188

On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "authorize the establishment, operation, and control of research parks on lands controlled by the Board of Regents.".

On page 1, delete line 2.

Moved by:    Olson (Russell)
Second by:    Rave
Action:    Prevailed by voice vote.

        SB 170: reduce contractor's excise tax rate on new or expanded power production.

Presented by:    Senator Jason Frerichs

MOTION:    REMOVE SB 170 FROM THE TABLE

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

Voting Yes:    Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Tieszen, Olson (Russell), Rhoden

MOTION:    BRING UP SB170 FOR IMMEDIATE CONSIDERATION

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

Voting Yes:    Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Tieszen, Olson (Russell), Rhoden

MOTION:    AMEND SB 170

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

" Section 1. The Legislature shall enact laws favorable to increasing employment and expanding the tax base in South Dakota."

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

MOTION:    DO PASS SB 170 AS AMENDED

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

Voting Yes:    Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Tieszen, Olson (Russell), Rhoden

MOTION:    AMEND TITLE OF SB 170

On page 1, line 1 of the printed bill, delete everything after "to" and insert "provide for the

enhancement of economic development in South Dakota.".

On page 1, delete line 2.

Moved by:    Frerichs
Second by:    Adelstein
Action:    Prevailed by voice vote.

        SB 182: revise certain provisions concerning tax incremental districts.

Presented by:    Senator Stanford Adelstein
Opponents:    Julie Johnson, Absolutely Aberdeen
        Bob O'Connell, Sioux Falls Area Chamber of Commerce
        Tobin Morris, Dougherty & Company, Pierre

MOTION:    AMEND SB 182

On page 2 of the printed bill, delete lines 5 to 10, inclusive.

On page 2, line 17, delete everything after "returns," and insert "excessive land costs due to factors such as soil type, topography, and gradients, credit worthiness including bank credit restrictions, and terms of repayment.".

On page 2, delete line 18.

Moved by:    Adelstein
Second by:    Frerichs
Action:    Failed by voice vote.

MOTION:    TO TABLE SB 182

Moved by:    Gray
Second by:    Rave
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Adelstein, Cutler, Gray, Johnston, Rave, Tieszen, Olson (Russell), Rhoden

Excused:    Frerichs

        HB 1058: revise certain record search fees charged by clerks of court.

Presented by:    David Gilbertson, Unified Judicial System
Proponents:    Patricia Duggan, Unified Judicial System
        Tom Barnett, State Bar Association of South Dakota
Opponents:    Representative Shawn Tornow
        Dan Siefken, SD Multiple Housing Assn. (Handouts: 2, 3, 4)
        Denise Hanzlik, Sioux Falls, Self
        Amy Miller, Sioux Falls, Self
        Shirleen Ranschan, Sioux Falls, Self
        Michelle Smith, Sioux Falls, Self
        Rodney Fitts, Sioux Falls, Self (Handout: 5)
        David Bordewyk, SD Newspaper Association

        THE CHAIR DEFERRED HB 1058

        HJR 1002: To propose a constitutional amendment to repeal certain reimbursement restrictions for travel by legislators to and from a legislative session.

THE CHAIR DEFERRED HJR 1002

HJR 1004: To propose a constitutional amendment regarding legislative term limits.

        THE CHAIR DEFERRED HJR 1004

MOTION:    ADJOURN

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

Kay Johnson

____________________________

Committee Secretary

Larry Rhoden, Chair

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