88th Legislative Session _ 2013

Committee: Senate State Affairs
Friday, February 15, 2013

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Rhoden, Chair
P    Olson (Russell), Vice-Chair
P    Johnston
P    Tieszen
P    Lederman
P    Rave
P    Brown
P    Lucas
P    Frerichs

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Larry Rhoden.

MOTION:    TO APPROVE THE MINUTES OF WEDNESDAY, FEBRUARY 13, 2013

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

        SB 82: provide for the nonpolitical election of the secretary of state.

Presented by:    Senator Stanford Adelstein

MOTION:    AMEND SB 82

82tb

    On page 2, line 13, of the printed bill, delete "nonpolitical" and insert "political party".

    On page 2, line 15, delete "1-8" and insert "12-6".

    On page 2, line 17, delete "office of secretary of state" and insert "offices of attorney general, secretary of state, state auditor, state treasurer, commissioner of school and public lands, and public utilities commissioner".

    On page 2, line 21, delete everything after "." .

    On page 2, delete lines 22 and 23.

    On page 2, line 24, delete everything before "The" .

    On page 2, line 24, delete everything after "for" and insert "each office".

    On page 3, delete lines 3 to 14, inclusive.

    On page 3, line 18, delete "the office of secretary of state" and insert "any office specified in section 6 of this Act".

    On page 3, delete lines 22 to 24, inclusive.

    On page 4, delete line 1, and insert:

"    Section 10. That § 12-5-21 be amended to read as follows:

    12-5-21. The state convention shall nominate candidates for lieutenant governor, attorney general, secretary of state, state auditor, state treasurer, commissioner of school and public lands, and public utilities commissioner and in the years when a President of the United States is to be elected, presidential electors and national committeeman and national committeewoman of the party. ".



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

MOTION:    DO PASS SB 82 AS AMENDED

Moved by:    Rave
Second by:    Johnston
Action:    Prevailed by roll call vote. (7-1-1-0)

Voting Yes:    Olson (Russell), Johnston, Tieszen, Rave, Brown, Lucas, Frerichs

Voting No:    Rhoden

Excused:    Lederman

MOTION:    AMEND TITLE OF SB 82

82ttb

    On page 1, line 1, of the printed bill, delete everything after "provide for the" and insert "nomination of candidates for certain constitutional officers using political party primary elections.".

    On page 1, delete line 2.


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

        SB 136: revise the state aid to education formula and to make an appropriation.

Presented by:    Senator Timothy Rave

MOTION:    DO PASS SB 136

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

Voting Yes:    Rhoden, Olson (Russell), Johnston, Tieszen, Rave, Brown, Lucas, Frerichs

Excused:    Lederman

        SB 182: enhance economic development.

Presented by:    Senator Corey Brown

MOTION:    DO PASS SB 182

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

Voting Yes:    Rhoden, Olson (Russell), Johnston, Tieszen, Rave, Brown, Lucas, Frerichs

Excused:    Lederman

        SB 162: establish goals and objectives for economic development.

Presented by:    Senator Billie Sutton

MOTION:    TO TABLE SB 162

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

Voting Yes:    Rhoden, Olson (Russell), Johnston, Tieszen, Rave, Brown, Lucas, Frerichs

Excused:    Lederman

        SB 232: limit political contributions by certain political action committees.

Presented by:    Senator Timothy Rave

MOTION:    DO PASS SB 232

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

Voting Yes:    Rhoden, Olson (Russell), Johnston, Tieszen, Lederman, Rave, Brown, Lucas, Frerichs

        SB 235: enhance economic development opportunities for the state.

Presented by:    Senator Corey Brown

MOTION:    DO PASS SB 235

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

Voting Yes:    Rhoden, Olson (Russell), Johnston, Tieszen, Lederman, Rave, Brown, Lucas, Frerichs

        SB 237: provide need-based scholarships to resident students enrolled in postsecondary education in the state.

Presented by:    Senator Russell Olson
Proponents:    Dr, Jack Warner, Board of Regents
        Dick Tieszen, Technical Institutes
        Jason Warr, National University Center, Rapid City

MOTION:    AMEND SB 237

237oa

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

    "    Section 1. That § 13-55A-1 be amended to read as follows:

    13-55A-1. The South Dakota Legislature finds that providing need-based financial aid to qualified resident students in education beyond high school in South Dakota enrolled in participating postsecondary institutions within the state is in the public interest.

    Section 2. That § 13-55A-2 be amended to read as follows:

    13-55A-2. Terms used in this chapter, unless the context otherwise requires, mean:

            (1)    "Eligible institution," an institution of education beyond the high school level, located in South Dakota, which may include all public and private nonprofit and proprietary institutions, including four-year colleges and universities, community and junior colleges, area technical or vocational schools, trade schools, technical institutes, schools of nursing or of the health professions or any institution which is determined by the executive director to be regularly accredited to offer postsecondary educational services by a recognized and appropriate accrediting agency, as determined by the executive director, and which has an agreement with the United States secretary of education for the conduct of any of the programs currently participating in any federal financial assistance program authorized by Title IV of The Higher Education Act of 1965, as amended to January 1, 2010;

            (2)    "Financial need," the amount of assistance, as determined by a federal department of education by calculating a student's estimated cost of attendance (minus family

contribution and additional aid granted) at an eligible institution;

            (3)    "Qualified student," a resident student who is enrolled in an eligible institution in a course of study on at least a half-time basis, as certified by the institution, and who has established financial need and who is maintaining satisfactory progress toward graduation;

            (4)    "Resident student," an individual who has been determined by the executive director to be a resident of South Dakota and who is enrolled at an eligible institution;

            (5)    "Executive director," the executive director of the Board of Regents;

            (6)    "Leveraging Educational Assistance PartnershipSouth Dakota need-based grant or Special Leveraging Educational Assistance Partnership grant," an award by the State of South Dakota to a qualified student under this chapter.

    Section 3. That § 13-55A-3 be amended to read as follows:

    13-55A-3. A leveraging educational assistance partnership South Dakota need-based grant or special leveraging educational assistance partnership grant may be awarded to any qualified South Dakota resident student who is admitted and is in attendance at any eligible institution on at least a half-time basis, and has established financial need and has received qualifying matching aid.

    Section 4. That § 13-55A-4 be amended to read as follows:

    13-55A-4. A participating eligible institution shall calculate the amount of award a leveraging educational assistance partnership South Dakota need-based grant or special leveraging educational assistance partnership grant to a qualified student for the normal academic year, or its equivalent, from a range of not less than one five hundred dollars nor more than one two thousand dollars, and shall make a recommendation to the executive director for his approval, disapproval or modification. The institution making the recommendation for each leveraging educational assistance partnership South Dakota need-based grant or special leveraging educational assistance partnership grant shall consider any other financial assistance available to the qualified student in relation to the financial assistance available to other qualified students attending that institution and may not exceed the lesser of the unmet need of the qualified student or the amount of qualifying matching aid.

    Section 5. That § 13-55A-5 be amended to read as follows:

    13-55A-5. Each applicant, in accordance with the rules and regulations of the executive director, shall:

            (1)    Be responsible for providing the information required to make a financial need

determination; and

            (2)    Report promptly to the executive director participating institution any information requested which is necessary to make a proper determination with respect to the student's need determination.

    Section 6. That § 13-55A-10 be amended to read as follows:

    13-55A-10. If a recipient of a leveraging educational assistance partnership South Dakota need-based grant or special leveraging educational assistance partnership grant discontinues attendance before the end of any semester, summer school sessions session, or their equivalents, the entire amount of any refund due that student from the eligible institution on a pro rata basis, up to the amount of any payment made under the leveraging educational assistance partnership South Dakota need-based grants or special leveraging educational assistance partnership grant, shall be paid by the eligible institution to the state.

    Section 7. That § 13-55A-11 be amended to read as follows:

    13-55A-11. The executive director shall administer this program and shall:

            (1)    Adopt rules and regulations, pursuant to chapter 1-26, to define tuition and mandatory fees, to define residents for the purposes of this chapter, and to determine the amount of grant funds available to students at each eligible institution. The executive director may provide for proration of funds if the available funds are insufficient to pay all approved grants;

            (2)    Approve and award leveraging educational assistance partnership South Dakota need-based grants or special leveraging educational assistance partnership grants; and

            (3)    Establish and maintain records required by good accounting practices.

    Section 8. That § 13-55A-12 be amended to read as follows:

    13-55A-12. The executive director Board of Regents is further authorized to establish a South Dakota need-based matching program. Any postsecondary institution eligible to participate in the program established under § 13-55A-1 may apply to the executive director once it has accumulated funding equal to three times the total need-based award. When an award is made, the board may distribute such monies at the rate of one dollar of the sum appropriated in this Act for every three dollars of private funding held and allocated to need-based financial aid by the participating institution. The Board of Regents may accept gifts, grants, and contributions, public or private, that will facilitate the education of South Dakota students pursuant to this chapter.


    Section 9. That § 13-55A-12.1 be amended to read as follows:

    13-55A-12.1. The executive director is hereby authorized to accept and expend any funds received from federal state or private sources as provided for in this chapter, provided such acceptance and expenditure is approved in accordance with § 4-8B-10. Expenditures authorized under this section shall be paid out on warrants drawn by the state auditor on vouchers approved by the executive director, or his designee.

    Section 10. There is hereby appropriated from the general fund the sum of five million dollars ($5,000,000), or so much thereof as may be necessary, to the need-based grant fund established pursuant to § 13-55A-14.

    Section 11. That § 13-55A-14 be amended to read as follows:

    13-55A-14. There is hereby created in the state treasury education enhancement trust fund the South Dakota need-based grant fund in the Board of Regents for the purpose of providing grants pursuant to this chapter to qualified students. All moneys in the South Dakota need-based grant fund are subject to appropriation by the Legislature through the General Appropriations Act or special appropriations acts for the need-based grant programs. Any interest earned shall be credited to the fund. The board may accept any gifts, contributions, or funds obtained from any other source for the purpose of carrying out the provisions of this section.

    Section 12. The state treasurer shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 13. That § 4-5-29.2 be amended to read as follows:

    4-5-29.2. Pursuant to S.D. Const., Art. XII, § 6, the state investment officer shall determine the market value of the education enhancement trust fund as of December 31, 2003, and each calendar year thereafter less the investment expenses transferred pursuant to § 4-5-30. The state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2008, the market value shall be determined by adding the market value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the education enhancement trust fund to the state general fund as soon as practicable after July first of the next fiscal year. The transfer to the general fund shall be apportioned based on the relative share of the contributions made to the need-based grant program as a proportion of the total principle balance in the trust fund as earnings available for the need-based grant program. Earnings apportioned to the need-based grant fund shall be appropriated to make awards authorized by this Act.



    Section 14. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval."


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

MOTION:    AMEND SB 237

237ob

    On the previously adopted amendment (237oa), in Section 10, delete "five million dollars ($5,000,000), or so much thereof as may be necessary," and insert "one dollar ($1)".


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

MOTION:    DO PASS SB 237 AS AMENDED

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

Voting Yes:    Rhoden, Olson (Russell), Johnston, Tieszen, Lederman, Rave, Brown, Lucas, Frerichs

MOTION:    AMEND TITLE OF SB 237

237ctb

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "appropriate funds for deposit into the need-based grant fund, to provide for annual funding of the need-based grant fund with a portion of the funds received from the education enhancement trust fund, and to declare an emergency.".

    On page 1, delete line 2.


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

MOTION:    ADJOURN

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

Jill Wellhouse

____________________________

Committee Secretary
Larry Rhoden, Chair


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