Senate Journal 1/30/2008 02:00 PM

JOURNAL OF THE SENATE

EIGHTY-THIRD SESSION

FIFTEENTH DAY

STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Wednesday, January 30, 2008

The Senate convened at 2:00 p.m., pursuant to adjournment, the President presiding.

The prayer was offered by the Chaplain, Rev. Howard Grinager, followed by the Pledge of Allegiance led by Senate page Kyle Kepplinger and Karla Rokusek.

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

APPROVAL OF THE JOURNAL

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

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

And we hereby move the adoption of the report.

Respectfully submitted,

Bob Gray, Chair

Which motion prevailed.

HONORED GUESTS

The President introduced the 2006-2007 Outstanding School Administrators of South Dakota: Larry Johnke, Irene-Wakonda, School Superintendent; Dennis Povondra, Bon Homme, School Business Official; Ruth Claeys, Box Elder, Elementary School Principal; James Bridge, Alexandria, Secondary School Principal; Bradley Berens, Mitchell, Middle School Principal; Wallace Bosch, Yankton, Assistant Secondary Principal; Dr. Lesli Hanson, Watertown, Curriculum Director; and Daniel Goodwin, Sioux Falls, Director of Special Education for being named outstanding administrators by their respective parent groups to the body.

REPORTS OF STANDING COMMITTEES

The Committee on Commerce respectfully reports that it has had under consideration SB 195, which was reconsidered, and returns the same without recommendation.

Respectfully submitted,
Royal "Mac" McCracken, Chair

Also MR. PRESIDENT:

The Committee on Local Government respectfully reports that it has had under consideration HB 1027 and returns the same with the recommendation that said bill do pass.

Also MR. PRESIDENT:

The Committee on Local Government respectfully reports that it has had under consideration HB 1105 and 1125 and returns the same with the recommendation that said bills do pass and be placed on the consent calendar.

Also MR. PRESIDENT:

The Committee on Local Government respectfully reports that it has had under consideration HB 1026 and returns the same with the recommendation that said bill be amended as follows:

On page 7, line 16, of the House engrossed bill, after " which " insert " repeatedly ".

And that as so amended said bill do pass.

Respectfully submitted,
Kenneth Albers, Chair

Also MR. PRESIDENT:

The Committee on State Affairs respectfully reports that it has had under consideration SB 40 and returns the same with the recommendation that said bill be amended as follows:

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

"Section 1. That chapter 49-34A be amended by adding thereto a NEW SECTION to read as follows:

Unless the commission otherwise orders:

(1) A public utility shall hold all owned or operated public utility assets in one or more legal entities separate and segregated from the legal entities of any nonutility subsidiaries or affiliates;

(2) All secured debt of a public utility may be used only for public utility purposes. If more than twenty percent of a public utility's secured assets are divested, the debt shall follow the assets or be retired in the same proportion as the divested assets; and

(3) No public utility may extend credit to any of its nonutility subsidiaries or affiliates, pledge the assets of the public utility as collateral for the use or benefit of any of its nonutility subsidiaries or affiliates, or guarantee any debt or obligations of any of its nonutility subsidiaries or affiliates.

Any public utility which does not comply with the provisions of this Act shall have two years within which to become compliant. Notwithstanding any provision of this Act, after notice and opportunity for hearing, the commission may grant a waiver of any provision of this Act if the commission finds a waiver would not pose an undue risk to the operation of the public utility and is in the public interest."

And that as so amended said bill do pass.

Also MR. PRESIDENT:

The Committee on State Affairs respectfully reports that it has had under consideration SB 143 and returns the same with the recommendation that said bill be amended as follows:

On page 4, line 5, of the printed bill, remove the overstrikes from both " ~~wireless~~ ".

On page 5, line 2, before " ; " insert " . The retail sale of prepaid wireless telecommunications service constitutes the sale of telecommunications service for the purposes of the surcharge imposed by this chapter ".

On page 5, line 11, after " services " insert " and includes the retail sale of prepaid wireless telecommunications service ".

On page 6, line 18, delete " person selling any " and insert " seller of ".

On page 7, delete lines 5 to 9, inclusive, and insert:

" ~~required to be~~ collected ~~are to~~ shall be remitted to the governing body ~~quarterly. The amount of the charge collected in one calendar quarter by the local exchange access company shall be remitted to the governing body no later~~ for telecommunications service billed to service users monthly and to the Department of Revenue and Regulation for prepaid telecommunications service sold in the state on a return required by the Department of Revenue and Regulation. Not more than thirty".

On page 9, line 15, delete everything after " (3) " and insert " Two representatives who are South Dakota telecommunications service providers; ".

On page 11, line 10, overstrike "coordinated" and insert " uniform ".

In the previously adopted amendment (143oc), delete the instruction for page 6, line 18, and insert the following instruction:

On page 6, line 18, delete " person selling " and insert " service provider providing ".

And that as so amended said bill do pass.

Respectfully submitted,
Thomas A. Dempster, Chair

Also MR. PRESIDENT:

The Committee on Taxation respectfully reports that it has had under consideration SB 130 and HB 1012 and returns the same with the recommendation that said bills do pass.

Also MR. PRESIDENT:

The Committee on Taxation respectfully reports that it has had under consideration HB 1010 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Also MR. PRESIDENT:

The Committee on Taxation respectfully reports that it has had under consideration HB 1182 and returns the same with the recommendation that said bill be amended as follows:

On page 2, line 23, of the House engrossed bill, after "," insert " life insurance proceeds that exceed twenty thousand dollars, gifts or inheritance that exceed one hundred dollars, proceeds from a court action, sale of personal items that exceed one hundred dollars, foster care income, ".

Delete the previously adopted amendment (1182fa), and insert:

On page 2, line 23, of the House engrossed bill, after "," insert " life insurance proceeds that exceed twenty thousand dollars, any gift or inheritance that exceeds five hundred dollars, proceeds from a court action, any sale of a personal item that exceeds five hundred dollars, foster care income, ".

And that as so amended said bill do pass.

Respectfully submitted,
Kenneth McNenny, Chair

Also MR. PRESIDENT:

The Committee on Judiciary respectfully reports that it has had under consideration SB 172 and returns the same with the recommendation that said bill be amended as follows:

On page 1, line 4, of the printed bill, delete "one dollar ($1)," and insert "two million dollars ($ 2,000,000 )".

On page 1, line 5, delete "or so much thereof as may be necessary,".

And that as so amended said bill be referred to the Committee on Appropriations.

Also MR. PRESIDENT:

The Committee on Judiciary respectfully reports that it has had under consideration SB 137 and 160 which were deferred to the 36^th Legislative Day.

Respectfully submitted,
Gene G. Abdallah, Chair

MESSAGE FROM THE HOUSE

I have the honor to transmit herewith HB 1009, 1057, 1058, 1064, 1065, 1068, 1073, 1075, 1112, 1123, 1131, 1138, 1144, 1180, 1193, 1200, 1212, and 1218 which have passed the House and your favorable consideration is respectfully requested.

Respectfully,
Karen Gerdes, Chief Clerk

MOTIONS AND RESOLUTIONS

HCR 1001: A CONCURRENT RESOLUTION, Requesting the Department of Game, Fish and Parks to give Martha Smith of Fairburn, South Dakota, the hide of a mountain lion she recently killed.

Was read the second time.

Sen. Lintz moved that the Senate do concur in HCR 1001 as found on page 246 of the House Journal be concurred in as amended on page 232 of the Senate Journal.

The question being on Sen. Lintz's motion that the Senate do concur in HCR 1001 as amended.

And the roll being called:

Yeas 33, Nays 0, Excused 2, Absent 0

Yeas:
Abdallah; Albers; Apa; Bartling; Dempster; Duenwald; Gant; 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; Turbak Berry; Two Bulls

Excused:
Garnos; Gray

So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and HCR 1001 was concurred in as amended.

SCR 5 Introduced by: Senators Sutton, Abdallah, Bartling, Dempster, Garnos, Gray, Hanson (Gary), Heidepriem, Hundstad, Jerstad, Katus, Kloucek, Knudson, Koetzle, Maher, Nesselhuf, Olson (Ed), Peterson (Jim), Turbak Berry, and Two Bulls and Representatives Halverson, Ahlers, Bradford, Brunner, Burg, Cutler, Dennert, Dreyer, Dykstra, Elliott, Engels, Faehn, Feinstein, Gassman, Gillespie, Gilson, Glenski, Hargens, Hills, Kirkeby, Krebs, Lucas, Lust, Miles, Moore, Nygaard, Olson (Russell), Rhoden, Sigdestad, Street, Thompson, Van Etten, Van Norman, and Vehle

A CONCURRENT RESOLUTION, Urging the Midwest Independent System Operator to reconsider its pricing methodology with respect to certain energy transmission costs.

WHEREAS, the United States faces continuing challenges related to the availability of energy and our dependence on foreign energy sources. The development and marketing of wind energy and other forms of renewable energy is an issue and an opportunity of high priority for our nation and our region; and

WHEREAS, in recent years, the upper Midwest has made great strides in the development of wind energy, although numerous obstacles still remain as the region strives to fully develop its energy resources; and

WHEREAS, a successful wind energy operation needs three elements: a wind energy resource, transmission capabilities, and buyers for the energy that is produced. South Dakota has the wind energy resource, but often faces obstacles in energy transmission and marketing. Access to transmission lines to move wind power from South Dakota to available markets remains a crucial impediment; and

WHEREAS, the Western Area Power Administration (WAPA) administers the grid that handles the transmission of electric power produced in the Dakotas and the Western states. The Midwest Independent System Operator (MISO) has corresponding responsibility for a large part of the Midwest east of South Dakota, from Minnesota to Ohio, an area where a major share of any new electric power generated in South Dakota would be marketed; and

WHEREAS, MISO has significant congestion problems and a serious backlog "queue" of projects and facilities requesting transmission service through the MISO grid, the majority of which are for new wind energy projects. Nearly the entire transmission system, particularly anything connecting to the east from the Dakotas into the MISO area, is strained to capacity, with a current time lag of two years or more between application to MISO and approval of a project for study; and

WHEREAS, an even more challenging issue for the development of wind energy in our region is the pricing mechanism used by MISO. In the MISO area, the transmission cost in the

network where the wheeling begins is what the user pays to cross the MISO system. Because transmission costs are higher in sparsely populated areas over long distances, power coming from the Dakotas before it enters the MISO system is at a competitive disadvantage to power coming from the MISO area; and

WHEREAS, the use of an average pricing or "postage stamp" method that sets a price for using the transmission system based on the average for all systems in the MISO area would enhance transmission access by all parties in the Midwest and Great Plains. This method would level the wholesale transmission playing field and spur the development of wind resources available in our region; and

WHEREAS, impediments in the transmission system cannot be allowed to stifle the development of energy from abundant renewable sources in the Midwest and Great Plains, and it is incumbent on all parties to address these issues in an expeditious and equitable manner:

NOW, THEREFORE, BE IT RESOLVED, by the Senate of the Eighty-Third Legislature of the State of South Dakota, the House of Representatives concurring therein, that the Legislature urges the Midwest Independent System Operator (MISO) to reconsider its pricing methodology and to use an average pricing method based on the average for all MISO covered systems and to do everything in its power to reduce the queue facing prospective wind energy projects; and

BE IT FURTHER RESOLVED, that the Legislature urges the states of North Dakota and Minnesota to join with South Dakota in its efforts to persuade MISO to revise its transmission pricing policies.

Was read the first time, the President waived the referral to committee and placed SCR5 on the calendar of Thursday, January 31, the 16^th legislative day.

CONSIDERATION OF REPORTS OF COMMITTEES

Sen. Knudson moved that the reports of the Standing Committees on

Transportation on SB 108 as found on page 247 of the Senate Journal ; also

Agriculture and Natural Resources on SB 173 as found on page 246 of the Senate Journal ; also

Education on SB 181 as found on page 244 of the Senate Journal be adopted.

Which motion prevailed.

Sen. Heidepriem moved that the word NOT be stricken from the report of the Committee on Education on SB 122 as found on page 244 of the Senate Journal and that the bill be placed on the calendar of Monday, February 4, the 17^th legislative day.

The question being on Sen. Heidepriem's motion that the word NOT be stricken from the report of the Committee on Education on SB 122 and that the bill be placed on the calendar of Monday, February 4, the 17^th legislative day.

And the roll being called:

Yeas 16, Nays 18, Excused 1, Absent 0

Yeas:
Abdallah; Bartling; Hanson (Gary); Heidepriem; Hoerth; Hundstad; Jerstad; Katus; Kloucek; Koetzle; Maher; Nesselhuf; Peterson (Jim); Sutton; Turbak Berry; Two Bulls

Nays:
Albers; Apa; Dempster; Duenwald; Gant; Gray; Greenfield; Hansen (Tom); Hauge; Hunhoff; Knudson; Lintz; McCracken; McNenny; Napoli; Olson (Ed); Schmidt (Dennis); Smidt (Orville)

Excused:
Garnos

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

FIRST READING OF HOUSE BILLS AND JOINT RESOLUTIONS

HB 1009: FOR AN ACT ENTITLED, An Act to revise provisions relating to persons engaged in the business of money transmission.

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

HB 1057: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding eligibility for open market status for the purposes of brand inspection.

Was read the first time and referred to the Committee on Agriculture and Natural Resources.

HB 1058: FOR AN ACT ENTITLED, An Act to increase the maximum amount allowable for the livestock ownership inspection fee.

Was read the first time and referred to the Committee on Agriculture and Natural Resources.

HB 1064: FOR AN ACT ENTITLED, An Act to revise the crime of aggravated incest.

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

HB 1065: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the 24/7 sobriety program.

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

HB 1068: FOR AN ACT ENTITLED, An Act to authorize the Office of the Attorney General to construct a storage facility in Rapid City, South Dakota, and to make an appropriation therefor.

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

HB 1073: FOR AN ACT ENTITLED, An Act to require abuse and neglect registry screening for certain special advocacy volunteers and guardians ad litem.

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

HB 1075: FOR AN ACT ENTITLED, An Act to require certain criminal record checks in adoption home studies for children in the custody of the Department of Social Services.

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

HB 1112: FOR AN ACT ENTITLED, An Act to revise certain provisions related to the direction, supervision, and registration fees for veterinary technicians.

Was read the first time and referred to the Committee on Agriculture and Natural Resources.

HB 1123: FOR AN ACT ENTITLED, An Act to establish a state renewable and recycled energy objective and to provide certain reporting requirements.

Was read the first time and referred to the Committee on State Affairs.

HB 1131: FOR AN ACT ENTITLED, An Act to permit the court to assess the crime victims' compensation surcharge in cases involving certain adjudicated children.

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

HB 1138: FOR AN ACT ENTITLED, An Act to prohibit the use of a false academic degree or a degree that is not completed.

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

HB 1144: FOR AN ACT ENTITLED, An Act to make an appropriation for costs related to the purchase of motorcycles for use in the motorcycle safety training courses, and to declare an emergency.

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

HB 1180: FOR AN ACT ENTITLED, An Act to appropriate money for the Northern Crops Institute.

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

HB 1193: FOR AN ACT ENTITLED, An Act to require abortion facilities to offer sonograms to pregnant women under certain circumstances.

Was read the first time and referred to the Committee on Health and Human Services.

HB 1200: FOR AN ACT ENTITLED, An Act to clarify the computation for premium tax payable for individual life insurance policies purchased by South Dakota residents.

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

HB 1212: FOR AN ACT ENTITLED, An Act to allow the marketing of group insurance for wireless telecommunications equipment under certain conditions.

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

HB 1218: FOR AN ACT ENTITLED, An Act to increase the maximum allowable outstanding amount of bonds issued by the Health and Educational Facility Authority on behalf of the four technical institutes.

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

SECOND READING OF SENATE BILLS AND JOINT RESOLUTIONS

SB 48: FOR AN ACT ENTITLED, An Act to make an appropriation for the payment of extraordinary litigation expenses and to declare an emergency.

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

Sen. Bartling moved that SB 48 be amended as follows:

On page 1, line 4, of the printed bill, delete "two million two" and insert "three million two hundred one thousand five hundred thirty-four dollars ($3,201,534)".

On page 1, line 5, delete "hundred fifty-two thousand seven hundred eighty-four dollars ($2,252,784)".

Which motion prevailed.

The question being "Shall SB 48 pass as amended?"

And the roll being called:

Yeas 29, Nays 5, Excused 1, Absent 0

Yeas:
Albers; Apa; Bartling; Dempster; Gant; Gray; Greenfield; Hansen (Tom); Hanson (Gary); Hauge; Heidepriem; Hoerth; Hundstad; Hunhoff; Jerstad; Katus; Kloucek; Knudson; Koetzle; Lintz; McCracken; McNenny; Nesselhuf; Olson (Ed); Peterson (Jim); Smidt (Orville); Sutton; Turbak Berry; Two Bulls

Nays:
Abdallah; Duenwald; Maher; Napoli; Schmidt (Dennis)

Excused:
Garnos

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

SB 126: FOR AN ACT ENTITLED, An Act to allow municipalities and counties to issue additional on-sale alcoholic beverage licenses and to compensate certain existing on-sale license holders.

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

Sen. Ed Olson moved that SB 126 be amended as follows:

On page 1, line 9, of the printed bill, delete ":".

On page 1, delete line 10, and insert "charges at least the minimum fee required by section 2 of this Act."

On page 1, delete lines 11 to 13, inclusive.

On page 2, line 20, delete "five" and insert "ten".

On page 3, delete lines 1 to 24, inclusive, and insert:

"Each licensee who owns an on-sale license issued pursuant to subdivision 35-4-2(4) or (6) as of January 1, 2008, shall report the amount originally paid for the on-sale license to the municipality or county that issued the license. The declared purchase price shall be made under oath and shall include the documents establishing the amount paid. If the transaction for the purchase of the on-sale license included real or personal property, the full market value of the real or personal property on the date of the original sale shall be deducted from the total transaction price to determine the amount paid by the licensee for the on-sale license. The burden of establishing the amount paid for the license shall be on the licensee. Any licensee contesting the fair market value of the real and personal property may appeal the valuation to circuit court.

Section 4. Any municipality or county adopting the ordinance pursuant to section 1 of this Act shall set the price of a new on-sale license, pursuant to section 1 of this Act, at or above the current fair market value. For purposes of this section, the term, current market value, means the documented price of the on-sale license most recently sold prior to January 1, 2008, through an arm's-length transaction, less the value of any real or personal property included in the transaction. Each on-sale license holder as of January 1, 2008, shall report to the municipality or county the date and price paid for its on-sale license.

Section 5. The municipality or county shall maintain a registry of each on-sale license that is being offered for sale and furnish a copy of the registry to anyone who requests a new on-sale license. The municipality or county may only issue a new license pursuant to this Act if no on- sale license is on the registry or a person desiring to purchase an on-sale license listed on the registry provides documentation showing that the person is unable to purchase the on-sale license on terms satisfactory to both the potential buyer and seller. The price of any on-sale license registered as, for sale, with the municipality or county shall be sold at the current price set by the municipality or county.

Section 6. The existing on-sale license holder is responsible for registering with the municipality or county that the on-sale license is for sale pursuant to section 6 of this Act."

On page 4, delete line 1.

Sen. Apa requested a roll call vote.

Which request was supported.

The question being on Sen. Olson's motion that SB 126 be amended.

And the roll being called:

Yeas 23, Nays 11, Excused 1, Absent 0

Yeas:
Bartling; Dempster; Gant; Gray; Hansen (Tom); Hanson (Gary); Hauge; Heidepriem; Hoerth; Hundstad; Jerstad; Katus; Kloucek; Knudson; Lintz; Maher; McCracken; Nesselhuf; Olson (Ed); Peterson (Jim); Smidt (Orville); Sutton; Turbak Berry

Nays:
Abdallah; Albers; Apa; Duenwald; Greenfield; Hunhoff; Koetzle; McNenny; Napoli; Schmidt (Dennis); Two Bulls

Excused:
Garnos

So the motion having received an affirmative vote of a majority of the members present, the President declared the motion carried.

Sen. Knudson moved that SB 126 be referred to the Committee on State Affairs.

Which motion prevailed.

SB 107: FOR AN ACT ENTITLED, An Act to authorize county special assessments for certain improvements, maintenance, and repair to roadways in unorganized townships.

Was read the second time.

Sen. Hunhoff moved that SB 107 be amended as follows:

On page 2, line 5, of the printed bill, after " ~~foot~~ " insert " not to exceed one dollar and fifty cents per front foot ".

Which motion prevailed.

The question being "Shall SB 107 pass as amended?"

And the roll being called:

Yeas 19, Nays 14, Excused 2, Absent 0

Yeas:
Albers; Bartling; Dempster; Gant; Gray; Hansen (Tom); Hanson (Gary); Hauge; Hunhoff; Knudson; Lintz; McCracken; McNenny; Napoli; Nesselhuf; Olson (Ed); Schmidt (Dennis); Smidt (Orville); Sutton

Nays:
Apa; Duenwald; Greenfield; Heidepriem; Hoerth; Hundstad; Jerstad; Katus; Kloucek; Koetzle; Maher; Peterson (Jim); Turbak Berry; Two Bulls

Excused:
Abdallah; Garnos

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

Sen. Kloucek announced his intention to reconsider the vote by which SB 107 passed.

Sen. Apa moved that SB 59 be referred to the Committee on Appropriations.

Which motion prevailed.

Sen. Apa moved that SB 201 be referred to the Committee on Appropriations.

Which motion prevailed.

SB 95: FOR AN ACT ENTITLED, An Act to increase certain fees collected by sheriffs for collecting delinquent taxes.

Was read the second time.

The question being "Shall SB 95 pass as amended?"

And the roll being called:

Yeas 31, Nays 2, Excused 2, Absent 0

Yeas:
Abdallah; Albers; Apa; Bartling; Dempster; Duenwald; Gant; Gray; Greenfield; Hansen (Tom); Hanson (Gary); Hauge; Heidepriem; Hoerth; Hundstad; Hunhoff; Jerstad; Katus; Knudson; Koetzle; Lintz; Maher; McCracken; McNenny; Napoli; Nesselhuf; Peterson (Jim); Smidt (Orville); Sutton; Turbak Berry; Two Bulls

Nays:
Kloucek; Schmidt (Dennis)

Excused:
Garnos; Olson (Ed)

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

SB 102: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the homestead exemption, personal property exemptions, and insurance and annuity exemptions.

Was read the second time.

Sen. Turbak Berry moved that SB 102 be further amended as follows:

On page 5, line 3, of the Senate Judiciary engrossed bill, delete " ~~two hundred and fifty~~ one thousand five hundred " and insert " ~~two~~ seven hundred ~~and~~ fifty".

On page 5, line 5, delete " ~~two hundred and fifty~~ one thousand five hundred " and insert " ~~two~~ seven hundred ~~and~~ fifty".

On page 5, line 11, delete " ~~two hundred and fifty~~ one thousand five hundred " and insert " ~~two~~ seven hundred ~~and~~ fifty".

Which motion prevailed.

The question being "Shall SB 102 pass as amended?"

And the roll being called:

Yeas 13, Nays 21, Excused 1, Absent 0

Yeas:
Abdallah; Hanson (Gary); Heidepriem; Hoerth; Hundstad; Jerstad; Katus; Kloucek; Koetzle; Nesselhuf; Sutton; Turbak Berry; Two Bulls

Nays:
Albers; Apa; Bartling; Dempster; Duenwald; Gant; Gray; Greenfield; Hansen (Tom); Hauge; Hunhoff; Knudson; Lintz; Maher; McCracken; McNenny; Napoli; Olson (Ed); Peterson (Jim); Schmidt (Dennis); Smidt (Orville)

Excused:
Garnos

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

SB 123: FOR AN ACT ENTITLED, An Act to provide for certain requirements for the sale and purchase of nonferrous metal property and to establish certain penalties.

Was read the second time.

Sen. Albers moved that SB 123 be further amended as follows:

On page 2, line 7, of the Senate Judiciary engrossed bill, delete "fifty" and insert "one hundred".

On page 2, line 11, delete "Time, date" and insert "Date".

On page 2, line 13, delete "state, and telephone number" and insert "and state".

On page 2, delete lines 21 to 24, inclusive.

On page 3, delete lines 1 to 4, inclusive.

On page 4, delete lines 4 to 21, inclusive.

Which motion prevailed.

The question being "Shall SB 123 pass as amended?"

And the roll being called:

Yeas 34, Nays 0, Excused 1, Absent 0

Yeas:
Abdallah; Albers; Apa; Bartling; Dempster; Duenwald; Gant; 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; Turbak Berry; Two Bulls

Excused:
Garnos

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

The question being on the title.

Sen. Albers moved that the title to SB 123 be amended as follows:

On page 1, line 2, of the Senate Judiciary engrossed bill, delete "and to establish certain penalties".

Which motion prevailed.

SB 162: FOR AN ACT ENTITLED, An Act to revise certain provisions related to the confidentiality of certain geological reports.

Was read the second time.

The question being "Shall SB 162 pass?"

And the roll being called:

Yeas 30, Nays 3, Excused 2, Absent 0

Yeas:
Abdallah; Albers; Apa; Bartling; Dempster; Duenwald; Gant; Gray; Greenfield; Hansen (Tom); Hanson (Gary); Hauge; Heidepriem; Hoerth; Hundstad; Hunhoff; Knudson; Koetzle; Lintz; Maher; McCracken; McNenny; Napoli; Nesselhuf; Olson (Ed); Peterson (Jim); Schmidt (Dennis); Smidt (Orville); Sutton; Turbak Berry

Nays:
Jerstad; Katus; Two Bulls

Excused:
Garnos; Kloucek

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

SB 163: FOR AN ACT ENTITLED, An Act to revise certain provisions related to the initiation of modifications to county comprehensive plans.

Was read the second time.

The question being "Shall SB 163 pass as amended?"

And the roll being called:

Yeas 34, Nays 0, Excused 1, Absent 0

Yeas:
Abdallah; Albers; Apa; Bartling; Dempster; Duenwald; Gant; 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; Turbak Berry; Two Bulls

Excused:
Garnos

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

Sen. Knudson moved that SB 183 and 190 be deferred to Monday, February 4, the 17^th legislative day.

Which motion prevailed.

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

REPORTS OF STANDING COMMITTEE

The Committee on Health and Human Services respectfully reports that it has had under consideration SB 112 and 129 and returns the same with the recommendation that said bills do pass and be placed on the consent calendar.

Also MR. PRESIDENT:

The Committee on Health and Human Services respectfully reports that it has had under consideration SB 161 and returns the same with the recommendation that said bill be amended as follows:

On page 1, line 6, of the printed bill, delete "Not all of the members may be of the same political party."

On page 2, line 4, of the printed bill, delete "one" and insert "five".

And that as so amended said bill do pass.

Also MR. PRESIDENT:

The Committee on Health and Human Services respectfully reports that it has had under consideration SB 114 and returns the same with the recommendation that said bill be amended as follows:

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

"Section 1. That § 58-17-74 be amended to read as follows:

58-17-74. Premium rates for individual health benefit plans subject to §§ 58-17-66 to 58- 17-87, inclusive, are subject to the following provisions:

(1) Any new policy issued after the effective date of §§ 58-17-66 to 58-17-87, inclusive, is subject to the provisions of §§ 58-17-66 to 58-17-87, inclusive;

(2) The index rate for a rating period for any class of individual business may not exceed the index rate for any other class of individual business by more than twenty percent;

(3) For a class of business, the premium rates charged during a rating period to individuals with similar case characteristics for the same or similar coverage, or the rates that could be charged to such individuals under the rating system for that class of business, may not vary from the index rate by more than thirty percent of the index rate;

(4) An adjustment applied to a single block of business may not exceed the adjustment applied to all blocks of business by more than fifteen percent due to the claim experience or health status of that block of business;

(5) Any adjustment in rates for claim experience and duration of coverage may not be charged to specific individual policyholders. Any such adjustment shall be applied uniformly to the rates charged for any person and dependents of the person within each class of business;

(6) Premium rates for individual health benefit plans shall comply with the requirements of §§ 58-17-66 to 58-17-87, inclusive;

(7) Each carrier shall apply rating factors consistently with respect to all persons in a class of business. Rating factors shall produce premiums for identical persons which differ only by the amounts attributable to plan design;

(8) No carrier may use characteristics other than age, gender, lifestyle, family composition, and geographic area without prior approval of the director. The maximum rating differential based solely on age may not exceed a factor of 5:1; and

(9) All rate adjustments based on geographic area shall reflect actual differences in the health care costs of the respective areas.

The rating provisions of subdivisions (1), (2), (3), (4), and (6) of this section do not apply to individual health benefit plans issued by a carrier to qualifying individuals on a guaranteed issue basis. However, the rate for any individual covered on a guaranteed issue basis may not exceed two and one half times the base rate of the class of business with the lowest index rate.

Section 2. That § 58-17-85 be amended to read as follows:

58-17-85. If a person has an aggregate of at least twelve months of creditable coverage, is a resident of this state, and applies within sixty-three days of the date of losing prior creditable coverage, the person is eligible for coverage as provided for in §§ 58-17-68, 58-17-70, 58-17- 85, and 58-17-113 to 58-17-142, inclusive, if none of the following apply:

(1) The applicant is eligible for continuation of coverage under an employer plan;

(2) ~~The applicant's most recent creditable coverage is a conversion plan from an employer group plan;~~

~~(3)~~ The person is eligible for an employer group plan, Part A or Part B of medicare, or medicaid;

~~(4)~~ (3) The person has other health insurance coverage;

~~(5)~~ (4) The person's most recent coverage was terminated because of the person's nonpayment of premium or fraud;

~~(6)~~ (5) The person loses coverage under a short term or limited duration plan; or

~~(7)~~ (6) The person's last coverage was creditable coverage as defined in subdivision 58-17- 69(13).

Any person who has exhausted continuation rights and who is eligible for conversion or other individual or association coverage has the option of obtaining coverage pursuant to this section or the conversion plan or other coverage. If a person chooses conversion coverage, other than pursuant to section 1 of this Act, in lieu of coverage pursuant to this section and the person later exhausts the lifetime maximum of the conversion coverage, the person may obtain coverage pursuant to this section as long as the person continues to satisfy the criteria of this section. A person who is otherwise eligible for the issuance of coverage pursuant to this section may not be required to show proof that coverage was denied by another carrier.

For purposes of this section, reasonable evidence that the prospective enrollee is a resident of this state shall be required. Factors that may be considered include a driver's license, voter registration, and where the prospective enrollee resides.

Any person who was eligible for the risk pool and opted for coverage pursuant to section 1 of this Act may, at any time while covered under that policy or within sixty-three days of terminating that coverage, elect to enroll in the risk pool. "

On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "allow for risk pool eligibility and rate flexibility for certain health insurance conversion plans."

On page 1, delete lines 2 and 3.

And that as so amended said bill do pass and be placed on the consent calendar.

Also MR. PRESIDENT:

The Committee on Health and Human Services respectfully reports that it has had under consideration SB 113 which was deferred to the 36^th Legislative Day.

Respectfully submitted,
Tom Hansen, Chair

SIGNING OF BILLS

The President publicly read the title to

HB 1018: FOR AN ACT ENTITLED, An Act to refund special fuel taxes under certain circumstances.

And signed the same in the presence of the Senate.

Sen. Knudson moved that when we adjourn today, we adjourn to convene at 1:00 p.m. on Thursday, January 31, the 16^th legislative day.

Which motion prevailed.

Sen. McNenny moved that the Senate do now adjourn, which motion prevailed and at 3:33 p.m. the Senate adjourned.

Trudy Evenstad, Secretary