87
th Legislative Session _ 2012
Committee: Senate State Affairs
Wednesday, February 22, 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 WEDNESDAY, FEBRUARY 15, 2012
Moved by: Gray
Second by: Adelstein
Action: Prevailed by voice vote.
HB 1196: revise certain provisions concerning lobbyists.
Presented by: Representative Tona Rozum
Proponents: Jason Gant, Office of the Secretary of State
Jeremiah M. Murphy, Self, Rapid City
MOTION: AMEND HB 1196
1196oa
On page 1, line 7, of the printed bill, delete "or" and insert "of".
Moved by: Rave
Second by: Cutler
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1196 AS AMENDED
Moved by: Cutler
Second by: Rave
Action: Prevailed by roll call vote. (8-0-1-0)
Voting Yes: Adelstein, Cutler, Frerichs, Gray, Johnston, Rave, Tieszen, Rhoden
Excused: Olson (Russell)
MOTION: PLACE HB 1196 ON CONSENT CALENDAR
Moved by: Gray
Second by: Tieszen
Action: Prevailed by voice vote.
HB 1182: revise the filing deadlines for the nomination of certain independent
candidates.
Presented by: Representative Mark Kirkeby
Proponents: Jason Gant, Office of the Secretary of State
MOTION: DO PASS HB 1182
Moved by: Rave
Second by: Cutler
Action: Prevailed by roll call vote. (6-1-2-0)
Voting Yes: Adelstein, Cutler, Gray, Rave, Tieszen, Rhoden
Voting No: Frerichs
Excused: Johnston, Olson (Russell)
HB 1138: declare that any person who maintains or provides roll-your-own cigarette
machines at retail establishments are cigarette manufacturers.
Presented by: Senator Mike Vehle (Handouts: 1, 2, 3)
Proponents: Dawna Leitzke, SD Petroleum and Propane Marketers Association
Bob Burke, Chamberlain, Self
Shawn Lyons, SD Retailers Association
Don Livesay, Self, Rapid City (Handout: 4)
Charlie McGuigan, Office of Attorney General
Jason Evans, Department of Revenue
Opponents: Larry Mann, RYO Machine, Rapid City
Ashley Taylor, RYO Machine, Cincinatti, Oh
Kay Davis, Self, Sioux Falls
Dave Backlund, Mitchell, Self
MOTION: AMEND HB 1138
1138oc
On page 1, line 10, of the House State Affairs Committee engrossed bill, delete "chapters" and
insert "chapter".
Moved by: Rave
Second by: Gray
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1138 AS AMENDED
Moved by: Cutler
Second by: Rave
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION AMEND HB 1138
1138ta
On the House State Affairs Committee engrossed bill, delete everything after the enacting
clause and insert:
" Section 1. That chapter 10-50 be amended by adding thereto a NEW SECTION to read as
follows:
Any retailer who offers a machine that enables a person to process, on the retailer's premises, a
product that is made or derived from tobacco into a cigarette tube shall:
(1) Establish an escrow account as if it were establishing a qualified escrow fund as defined
by subdivision 10-50B-3(5) for any pipe tobacco the retailer sells in conjunction with the
use of the retailer's in-store machines. The retailer is responsible for making the payments
set forth in § 10-50B-7, as if it were the manufacturer of roll-your-own tobacco;
(2) Provide the Office of the Attorney General with a quarterly statement as to the number
of ounces of pipe tobacco sold in conjunction to the use of the retailer's machines by retail
tobacco customers; the total amount deposited into the escrow fund; and the name of the
financial institution where the escrow fund is maintained; and
(3) Allow the attorney general to inspect or copy or both any business record relating to the
number cigarettes produced in the in-store machines, any business record relating to the
sale of all roll-your-own tobacco and pipe tobacco and any bank statement from the
qualified escrow fund.
Section 2. That chapter 10-50 be amended by adding thereto a NEW SECTION to read as
follows:
The assessment payment obligation set forth in section 1 of this Act may be transferred by the
retailer to the manufacturer of the machine described in section 1 of this Act by a written agreement
signed by the retailer and the manufacturer of the machine, and approved by the Department of
Revenue.
Section 3. That chapter 10-50 be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding the provisions of section 1 of this Act, no retailer may offer a machine described
in section 1 of this Act unless the machine is constructed and maintained to allow the manufacturer
thereof to maintain an electronic count of the number of cigarette tubes used in the machine. In order
to verify the payment of the assessment imposed in section 1 of this Act, the retailer shall report to
the Department of Revenue, between the first and twentieth of each month, inclusive, the total
number of tubes used in each machine during the preceding month. All invoices, books, papers,
cancelled checks or other memoranda or records reflecting usage of such machines shall be subject
to audit and inspection by any duly authorized representative of the Department of Revenue at all
times.
Section 4. That chapter 10-50 be amended by adding thereto a NEW SECTION to read as
follows:
The product produced by any machine described in section 1 of Act shall comply with the
provisions of chapter 34-29 by July 1, 2014."
Moved by: Frerichs
Second by: Tieszen
Action: Failed by voice vote.
THE ORIGINAL MOTION TO DO PASS HB 1138 AS AMENDED
Moved by: Cutler
Second by: Rave
Action: PREVAILED BY ROLL CALL VOTE. (6-2-1-0)
Voting Yes: Adelstein, Cutler, Gray, Johnston, Rave, Tieszen
Voting No: Frerichs, Rhoden
Excused: Olson (Russell)
MOTION: ADJOURN
Moved by: Cutler
Second by: Gray
Action: Prevailed by voice vote.
Kay Johnson
____________________________
Committee Secretary
Larry Rhoden, Chair
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