88th Legislative Session _ 2013

Committee: Senate Appropriations
Tuesday, February 19, 2013

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Sutton
P    Jones
P    Novstrup (Al)
P    Heineman (Phyllis)
P    White
E    Van Gerpen
P    Adelstein
P    Tidemann, Vice-Chair
P    Peters, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chairman Deb Peters.

        SB 217: exempt certain rodeo events from sales taxes.

Presented by:    Senator Jim Bradford
Proponents:    Don Bergeson, SD 4H Rodeo Finals, Pierre (Handouts: Nos. 1, 2 and 3)
        Brett Stirling, Self, Reliance (Handouts: No. 4)
        Barry Knippling, Chamberlain
        Teri Heninger, Self, Ft. Pierre
Opponents:    Jane Page, Department of Revenue

MOTION:    DO PASS SB 217

Moved by:    Tidemann
Second by:    Sutton
Action:    Failed by roll call vote. (3-4-2-0)

Voting Yes:    Sutton, Jones, Tidemann



Voting No:    Novstrup (Al), Heineman (Phyllis), White, Peters

Excused:    Van Gerpen, Adelstein

MOTION:    TO TABLE SB 217

Moved by:    Heineman (Phyllis)
Second by:    White
Action:    Prevailed by roll call vote. (5-2-2-0)

Voting Yes:    Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton, Jones

Excused:    Van Gerpen, Adelstein

        SB 76: create an innovation grant program for school districts and education service agencies and to make an appropriation therefor.

MOTION:    AMEND SB 76

76ce

    On the Senate Education Committee engrossed bill, delete everything after the enacting clause and insert:

    "
    Section 1. There is hereby appropriated from the general fund the sum of one dollar ($1), or so much thereof as may be necessary, to the education service agencies established pursuant to § 13-3-76.

    Section 2. The secretary of education shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8."



Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 76 AS AMENDED

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

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

MOTION:    AMEND TITLE OF SB 76

76ctb

    On page 1, line 1, of the Senate Education Committee engrossed bill, delete everything after "Act to" and insert "appropriate money to fund the education service agencies.".

    On page 1, delete line 2.


Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by voice vote.

        SB 176: appropriate money to the South Dakota Board of Regents - Agricultural Experiment Station to implement a research investment program.

MOTION:    AMEND SB 176

176da

    On page 1, line 4, of the printed bill, delete "five million nine" and insert "one dollar ($1)".

    On page 1, line 5, delete everything before ", or" .


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 176 AS AMENDED

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 208: make an appropriation to rehabilitate certain state-owned rail lines.

MOTION:    AMEND SB 208

208da

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

    On page 1, line 5, delete everything before ", or" .
                                

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 208 AS AMENDED

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (7-1-1-0)

Voting Yes:    Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Voting No:    Sutton

Excused:    Van Gerpen

        SB 229: make an appropriation for the purpose of providing funding for career and

technical education.

MOTION:    AMEND SB 229

229dc

    On page 1, line 4, of the printed bill, delete everything after "one" .

    On page 1, line 5, delete everything before "or" and insert "dollar ($1),".


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 229 AS AMENDED

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

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 233: create the critical teaching needs scholarship program and to make an appropriation to the education enhancement trust fund to provide for the annual funding of the scholarships.

MOTION:    AMEND SB 233

233da

    On page 5, line 13, of the Senate Education Committee engrossed bill, delete everything after "of" and insert "one dollar ($1),".

    On page 5, line 14, delete everything before "or" .


Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 233 AS AMENDED

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 236: appropriate money to the Board of Regents to fund the expansion of information systems programs and cyber security programs at Dakota State University.

MOTION:    AMEND SB 236

236db

    On page 1, line 5, of the printed bill, delete "nine hundred".

    On page 1, line 6, delete everything before "or" and insert "one dollar ($1),".


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 236 AS AMENDED

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

Voting Yes:    Sutton, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Voting No:    Jones

Excused:    Van Gerpen

        SB 2: provide funding for unresolved surface depredation caused by oil and gas exploration and to make an appropriation therefor.

MOTION:    TO TABLE SB 2

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (6-1-2-0)

Voting Yes:    Jones, Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton

Excused:    Van Gerpen, Adelstein

        SB 193: revise the per student allocation in the state aid to general education formula.

MOTION:    TO TABLE SB 193

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (5-2-2-0)

Voting Yes:    Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton, Jones

Excused:    Van Gerpen, Adelstein

        SB 196: revise the index factor in the state aid to general education and state aid to special education formulas.

MOTION:    TO TABLE SB 196

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (5-2-2-0)



Voting Yes:    Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton, Jones

Excused:    Van Gerpen, Adelstein

        SB 234: revise the General Appropriations Act for fiscal year 2013 to provide funding for the increased costs associated with the Board of Regents employee health insurance and to declare an emergency.

MOTION:    TO TABLE SB 234

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Failed by roll call vote. (4-3-2-0)

Voting Yes:    Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton, Jones, Novstrup (Al)

Excused:    Van Gerpen, Adelstein

MOTION:    DEFER SB 234 TO THE 41ST LEGISLATIVE DAY

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (5-3-1-0)

Voting Yes:    Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Voting No:    Sutton, Jones, Novstrup (Al)

Excused:    Van Gerpen

        SB 140: expand Medicaid eligibility for pregnant women and to make an appropriation therefor.

MOTION:    TO TABLE SB 140


Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 172: temporarily increase the state sales and use tax and to declare an emergency.

MOTION:    DO PASS SB 172

Moved by:    Adelstein
Second by:    Sutton
Action:    Failed by roll call vote. (3-5-1-0)

Voting Yes:    Sutton, Jones, Adelstein

Voting No:    Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Excused:    Van Gerpen

MOTION:    TO TABLE SB 172

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (5-3-1-0)

Voting Yes:    Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton, Jones, Adelstein

Excused:    Van Gerpen

        SB 241: make an appropriation for an invasive species research project conducted by South Dakota State University.

MOTION:    TO TABLE SB 241


Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 51: revise certain provisions regarding the application of the collection allowance credit for collecting the sales tax.

MOTION:    AMEND SB 51

51da

    On page 2 of the printed bill, delete lines 7 to 9, inclusive.

    On page 3, delete lines 12 to 15, inclusive.


Moved by:    Sutton
Second by:    Jones
Action:    Failed by voice vote.

MOTION:    DO PASS SB 51

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 131: revise the annual budget report.

MOTION:    TO TABLE SB 131


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by roll call vote. (5-3-1-0)

Voting Yes:    Sutton, Jones, White, Tidemann, Peters

Voting No:    Novstrup (Al), Heineman (Phyllis), Adelstein

Excused:    Van Gerpen

        SB 231: develop a systematic process for the performance management review of state agencies.

MOTION:    TO TABLE SB 231

Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by roll call vote. (5-3-1-0)

Voting Yes:    Sutton, White, Adelstein, Tidemann, Peters

Voting No:    Jones, Novstrup (Al), Heineman (Phyllis)

Excused:    Van Gerpen

        SB 155: establish a local government road improvement grant fund for the purpose of serving new agricultural facilities and to make an appropriation therefor.

MOTION:    AMEND SB 155

155da

    On page 2, line 12, of the printed bill, delete "five million dollars" and insert "one dollar ($1)".

    On page 2, line 13, delete everything before ", or" .


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    AMEND SB 155

155ao

    On page 1, between lines 10 and 11 of the printed bill, insert:

"    Section 2. If a county imposes the maximum wheel tax pursuant to chapter 32-5A or supplements road funds with general funds or other funds in an amount equal to or greater than what may be generated from a wheel tax increase, the county shall be eligible for a grant under this Act.".



Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 155 AS AMENDED

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

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

        SB 191: increase state aid to education and revise certain provisions related to education funding.

MOTION:    TO TABLE SB 191

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (6-2-1-0)

Voting Yes:    Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Voting No:    Sutton, Jones

Excused:    Van Gerpen


        SB 188: make an appropriation to fund the Teach for America grant program.

MOTION:    AMEND SB 188

188ca

    On page 2, line 9, of the printed bill, delete "five hundred" and insert "one dollar ($1)".

    On page 2, line 10, delete "thousand dollars ($500,000)".


Moved by:    Heineman (Phyllis)
Second by:    White
Action:    Failed by roll call vote. (4-4-1-0)

Voting Yes:    Jones, Novstrup (Al), Heineman (Phyllis), Adelstein

Voting No:    Sutton, White, Tidemann, Peters

Excused:    Van Gerpen

MOTION:    TO TABLE SB 188

Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by roll call vote. (5-3-1-0)

Voting Yes:    Sutton, Jones, White, Tidemann, Peters

Voting No:    Novstrup (Al), Heineman (Phyllis), Adelstein

Excused:    Van Gerpen

        SB 28: revise the property tax levies for the general fund of a school district.

Others:    Jim Terwilliger, Bureau of Finance and Management

MOTION:    AMEND SB 28

28mb

    On page 2, after line 13 of the printed bill, insert:

"    Section 2. That § 13-37-2.1 be amended to read as follows:

    13-37-2.1. As used in this chapter, the term, surrogate parent, means any individual certified by the Department of Education assigned by the district to act in place of the parent of a child in need of special education when the school district cannot identify or locate the parent or the child is a ward of the state.

    Section 3. That § 13-37-16 be amended to read as follows:

    13-37-16. For taxes payable in 1997 2014, and each year thereafter, the school board shall levy no more than one dollar and forty fifty-five and two tenths cents per thousand dollars of taxable valuation, as a special levy in addition to all other levies authorized by law for the amount so determined to be necessary, and such levy shall be spread against all of the taxable property of the district. The proceeds derived from such levy shall constitute a school district special education fund of the district for the payment of costs for the special education of all children in need of special education or special education and related services who reside within the district pursuant to the provisions of §§ 13-37-8.2 to 13-37-8.10, inclusive. The levy in this section shall be based on valuations such that the median level of assessment represents 85% of market value as determined by the Department of Revenue. The total amount of taxes that would be generated at the levy pursuant to this section shall be considered local effort. Money in the special education fund may be expended for the purchase or lease of any assistive technology that is directly related to special education and specified in a student's individualized education plan. This section does not apply to real property improvements.

    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.
    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 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.

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

    Section 4. That § 13-37-16.2 be amended to read as follows:

    13-37-16.2. If local effort increases on a statewide aggregate basis by a greater percentage than local need on a statewide aggregate basis from any one year to the next, for the following year, the levy specified in subdivision 13-37-35.1(19) 13-37-35.1(7) shall be reduced proportionally so that the percentage increase in local effort on a statewide aggregate basis equals the percentage increase in need on a statewide aggregate basis.

    Section 5. That § 13-37-16.3 be amended to read as follows:

    13-37-16.3. Any adjustments in the levy specified in subdivision 13-37-35.1(19) 13-37-35.1(7) made pursuant to § 13-37-16.2 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. However, for fiscal year 2014, and each year thereafter, if the levy specified in subdivision 13-37-35.1(7) is not adjusted to maintain this relationship, the funding allocation for each disability level as defined in § 13-37-35.1 shall be reduced proportionally to maintain the relationship between statewide local effort as a percentage of statewide local need.

    Section 6. That § 13-37-18 be amended to read as follows:

    13-37-18. Special education costs and statistical information shall be included in the annual application for state aid financial report as provided in § 13-13-37.

    Section 7. That § 13-37-35.1 be amended to read as follows:

    13-37-35.1. Terms used in chapter 13-37 mean:

            (1)    "Level one disability," a mild disability;
            (2)    "Level two disability," cognitive disability or emotional disorder;
            (3)    "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, orthopedic impairment, or traumatic brain injury;
            (4)    "Level four disability," autism;
            (5)    "Level five disability," multiple disabilities;
            (5A)    "Level six disability," prolonged assistance;
            (6)    "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the

United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;

            (7)    "Local effort," shall be calculated for taxes payable in 2011 and shall be the amount of revenue that could have been generated for the taxes payable in 2010 using a special education levy of one dollar and twenty cents per one thousand dollars of valuation increased by the lesser of three percent or the index factor, as defined in § 10-13-38, plus a 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 local effort shall be increased by the lesser of three percent or the index factor, established pursuant to § 10-13-38 plus a 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 2014 and thereafter using a special education levy of one dollar and thirty-three and three tenths cents per one thousand dollars of valuation;
            (8)    "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 2012, is $4,525. For each school year thereafter, the allocation for a student with a level one disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (9)    "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 2012, is $11,124. For each school year thereafter, the allocation for a student with a level two disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (10)    "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 2012, is $14,788. For each school year thereafter, the allocation for a student with a level three disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (11)    "Allocation for a student with a level four disability," for the school fiscal year beginning July 1, 2012, is $13,204. For each school year thereafter, the allocation for a student with a level four disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (12)    "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 2012, is $19,993. For each school year thereafter, the allocation for a student with a level five disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (12A)    "Allocation for a student with a level six disability," for the school fiscal year beginning July 1, 2012, is $7,205. For each school year thereafter, the allocation for a student with a level six disability shall be the previous fiscal year's allocation for such child increased

by the lesser of the index factor or three percent;

            (13)    "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education in accordance with rules promulgated pursuant to § 13-37-1.1;
            (14)    "Fall enrollment," the number of kindergarten through twelfth grade pupils enrolled in all schools operated by the school district on the last Friday of September of the previous school year minus the number of students for whom the district receives tuition, except any nonresident student who is in the care and custody of a state agency and is attending a public school and any student for whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students for whom the district pays tuition;
            (15)    "Nonpublic school," a sectarian organization or entity which is accredited by the secretary of education for the purpose of instructing children of compulsory school age. This definition excludes any school that receives a majority of its revenues from public funds;
            (16)    "Nonpublic fall enrollment," until June 30, 2008, the number of children under age sixteen, and beginning July 1, 2009, the number of children under age eighteen, who are approved for alternative instruction pursuant to § 13-27-2 on the last Friday of September of the previous school year plus:
            (a)    For nonpublic schools located within the boundaries of a public school district with a fall enrollment of six hundred or more on the last Friday of September of the previous school year, the number of kindergarten through twelfth grade pupils enrolled on the last Friday of September of the previous regular school year in all nonpublic schools located within the boundaries of the public school district;
            (b)    For nonpublic schools located within the boundaries of a public school district with a fall enrollment of less than six hundred on the last Friday of September of the previous school year, the number of resident kindergarten through twelfth grade pupils enrolled on the last Friday of September of the previous school year in all nonpublic schools located within the State of South Dakota;
            (17)    "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;
            (18)    "Local need," an amount to be determined as follows:
            (a)    Multiply the special education fall enrollment by 0.1004 and multiply the result by the allocation for a student with a level one disability;
            (b)    Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;
            (c)    Multiply the number of students having a level three disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level three disability;
            (d)    Multiply the number of students having a level four disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level four disability;
            (e)    Multiply the number of students having a level five disability as reported on the

child count for the previous school fiscal year by the allocation for a student with a level five disability;

            (f)    Multiply the number of students having a level six disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level six disability;
            (g)    When calculating local need at the statewide level, include the amount set aside for extraordinary costs defined in § 13-37-40;
            (h)    Sum the results of (a) through (f) to (g), inclusive;
            (19)    "Effort factor," for taxes payable in 2011, 2012, 2013, 2014, and 2015, the effort factor is the amount of taxes payable for the year divided by the amount of local effort as calculated in subdivision (7) the school district's special education tax levy in dollars per thousand divided by $1.333. The maximum effort factor is 1.0.

    Section 8. That § 13-37-36.1 be amended to read as follows:

    13-37-36.1. To establish the school district special education fund statutory carryover excluding federal funds, the following calculations shall be performed:

            (1)    Divide the total federal special education revenue by the total special education revenues; and
            (2)    Multiply the federal special education percentage calculated in (1) times the total special education fund balance; and
            (3)    Deduct the amount of federal revenue calculated in (2) from the special education fund balance, deduct from the total ending fund balance the amount of Title VIII of the Elementary and Secondary Education Act funds receipted or transferred to the special education fund.

    Section 9. That § 13-37-40 be amended to read as follows:
    13-37-40. Subject to the limitation in § 13-37-42, the secretary of the Department of Education shall, for school fiscal year 1999 2014 and each year thereafter, set aside 5.75% four million dollars of the state aid to districts for special education appropriation for extraordinary expenses incurred in providing special education programs or services to one or more children with disabilities, with expenditures to be made as recommended by an oversight board and approved by the secretary of the Department of Education. Any funds not expended or obligated pursuant to this section shall not be subject to reversion pursuant to § 4-8-19. The maximum amount not subject to reversion is equal to 5.75% of the state special education appropriation. The total amount set aside for extraordinary expenses each fiscal year plus the total amount not reverted from previous fiscal years may not exceed six million dollars.
    The amount appropriated for extraordinary expenses shall be recalculated at the same time as the amount of the allocations for disability levels as provided in § 13-37-35.2.

    Section 10. That § 13-37-40.1 be amended to read as follows:


    13-37-40.1. A school district is not eligible for funding from the money set aside in §§ 13-37-38 to 13-37-40, inclusive, unless the school district certifies to the secretary of education that its ending special education fund balance will not exceed five ten percent of its special education expenditures for the current fiscal year.

    Section 11. That § 13-37-44 be amended to read as follows:

    13-37-44. A school district's state aid for special education as calculated pursuant to § 13-37-36.1 or 13-37-51 shall be reduced by the amount which its ending special education fund balance exceeds twenty twenty-five percent of its special education expenditures for the prior fiscal year or fifty one hundred thousand dollars, whichever is greater, if the school district did not receive money set aside in § 13-37-40 during the prior fiscal year; or the amount which its ending special education fund balance exceeds five ten percent of its special education expenditures for the prior fiscal year if the school district received money set aside in §§ 13-37-38 to 13-37-40, inclusive, during the prior fiscal year.

    Section 12. That § 13-37-48.1 be repealed.

    13-37-48.1. In addition to the purposes specified in § 13-37-40, money set aside pursuant to § 13-37-40 may be used by the Department of Education to establish and maintain a program to assist school districts with legal matters relating to special education, to employ personnel to audit school districts for compliance with the provisions of §§ 13-37-36.1 to 13-37-52, to establish and maintain state protocols to assist school districts in developing individualized education plans, to support activities under Part C of the Individuals with Disabilities Education Act, Infants and Toddlers with Disabilities, or to purchase assistive technology for students with a level two, three, four, or five disability.

    Any approved K-12 application under the extraordinary cost fund must be funded prior to funding the Part C requests.

    Section 13. That § 13-37-51 be repealed.

    13-37-51. For the transition period from school fiscal year 2000 through school fiscal year 2003, state aid for special education shall be determined according to the following calculations:

            (1)    Multiply local need of a school district by 0.96 in school fiscal year 2000, 0.97 in school fiscal year 2001, 0.98 in school fiscal year 2002, and 0.99 in school fiscal year 2003;
            (2)    After making the adjustment to local need pursuant to subdivision (1) of this section, calculate state aid for special education pursuant to § 13-37-36.1;
            (3)    Subtract the result of subdivision (2) from the amount of state aid received pursuant to § 13-37-36.3 or 13-37-43 in school fiscal year 1999;
            (4)    Multiply the result of subdivision (3) by 0.80 in school fiscal year 2000, 0.60 in school fiscal year 2001, 0.40 in school fiscal year 2002, and 0.20 in school fiscal year 2003;
            (5)    Add the result of subdivision (2) to the result of subdivision (4);
            (6)    State aid for special education is the greater of the result of subdivision (2) or the result of subdivision (5).

    Section 14. That § 13-37-53 be repealed.

    13-37-53. If the parents or guardian of a child assigned to and enrolled in an out of district special education residential or tuition day program move to another South Dakota school district and that school district provides special education services to the child, the Department of Education shall allocate any state aid to special education attributable to the child received or scheduled to be received by the resident school district as defined by § 13-28-9.1 to the school district to which the parents or guardian have moved for the period of time that the resident school district is not providing special education services to the child. For the purposes of §§ 13-28-9.1 and 13-37-54, an approved special education program includes out-of-district residential programs and tuition day programs.

    Section 15. That § 13-37-54 be amended to read as follows:

    13-37-54. The Department of Education may promulgate rules pursuant to chapter 1-26 to provide for the reallocation of state aid to special education as provided for in §§ § 13-28-9.1 and 13-37-53.

    Section 16. That § 13-16-7.1 be amended to read as follows:

    13-16-7.1. For taxes payable in 2011, 2012, 2013, 2014, and 2015, the provisions of §§ 13-10-6, and 13-16-7, 13-37-16, and 13-37-35.1 that limit the maximum amount of revenue that may be generated by the pension, and capital outlay, and special education tax levies do not apply to any school district that has less than a ten percent change in the total taxable valuation from the previous year of all real property in the school district, not including the increase of value resulting from any improvements or change in use of real property. ".



Moved by:    Tidemann
Second by:    White
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION AMEND SB 28

28mc

    On page 2, after line 13 of the printed bill, insert:

"    Section 2. That § 13-37-2.1 be amended to read as follows:



    13-37-2.1. As used in this chapter, the term, surrogate parent, means any individual certified by the Department of Education assigned by the district to act in place of the parent of a child in need of special education when the school district cannot identify or locate the parent or the child is a ward of the state.

    Section 3. That § 13-37-16 be amended to read as follows:

    13-37-16. For taxes payable in 1997 2014, and each year thereafter, the school board shall levy no more than one dollar and forty fifty-five and two tenths cents per thousand dollars of taxable valuation, as a special levy in addition to all other levies authorized by law for the amount so determined to be necessary, and such levy shall be spread against all of the taxable property of the district. The proceeds derived from such levy shall constitute a school district special education fund of the district for the payment of costs for the special education of all children in need of special education or special education and related services who reside within the district pursuant to the provisions of §§ 13-37-8.2 to 13-37-8.10, inclusive. The levy in this section shall be based on valuations such that the median level of assessment represents 85% of market value as determined by the Department of Revenue. The total amount of taxes that would be generated at the levy pursuant to this section shall be considered local effort. Money in the special education fund may be expended for the purchase or lease of any assistive technology that is directly related to special education and specified in a student's individualized education plan. This section does not apply to real property improvements.

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

    Section 4. That § 13-37-16.2 be amended to read as follows:

    13-37-16.2. If local effort increases on a statewide aggregate basis by a greater percentage than local need on a statewide aggregate basis from any one year to the next, for the following year, the levy specified in subdivision 13-37-35.1(19) 13-37-35.1(7) shall be reduced proportionally so that the percentage increase in local effort on a statewide aggregate basis equals the percentage increase in need on a statewide aggregate basis.

    Section 5. That § 13-37-16.3 be amended to read as follows:

    13-37-16.3. Any adjustments in the levy specified in subdivision 13-37-35.1(19) 13-37-35.1(7) made pursuant to § 13-37-16.2 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. However, for fiscal year 2014, and each year thereafter, if the levy specified in subdivision 13-37-35.1(7) is not adjusted to maintain this relationship, the funding allocation for each disability level as defined in § 13-37-35.1 shall be reduced proportionally to maintain the relationship between statewide local effort as a percentage of statewide local need.

    Section 6. That § 13-37-18 be amended to read as follows:

    13-37-18. Special education costs and statistical information shall be included in the annual application for state aid financial report as provided in § 13-13-37.

    Section 7. That § 13-37-35.1 be amended to read as follows:

    13-37-35.1. Terms used in chapter 13-37 mean:

            (1)    "Level one disability," a mild disability;
            (2)    "Level two disability," cognitive disability or emotional disorder;
            (3)    "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, orthopedic impairment, or traumatic brain injury;
            (4)    "Level four disability," autism;
            (5)    "Level five disability," multiple disabilities;
            (5A)    "Level six disability," prolonged assistance;
            (6)    "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;
            (7)    "Local effort," shall be calculated for taxes payable in 2011 and shall be the amount of revenue that could have been generated for the taxes payable in 2010 using a special

education levy of one dollar and twenty cents per one thousand dollars of valuation increased by the lesser of three percent or the index factor, as defined in § 10-13-38, plus a 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 local effort shall be increased by the lesser of three percent or the index factor, established pursuant to § 10-13-38 plus a 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 2014 and thereafter using a special education levy of one dollar and thirty-five and two tenths cents per one thousand dollars of valuation;
            (8)    "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 2012, is $4,525. For each school year thereafter, the allocation for a student with a level one disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (9)    "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 2012, is $11,124. For each school year thereafter, the allocation for a student with a level two disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (10)    "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 2012, is $14,788. For each school year thereafter, the allocation for a student with a level three disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (11)    "Allocation for a student with a level four disability," for the school fiscal year beginning July 1, 2012, is $13,204. For each school year thereafter, the allocation for a student with a level four disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (12)    "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 2012, is $19,993. For each school year thereafter, the allocation for a student with a level five disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (12A)    "Allocation for a student with a level six disability," for the school fiscal year beginning July 1, 2012, is $7,205. For each school year thereafter, the allocation for a student with a level six disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent;
            (13)    "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to §§ 13-37-1.1 and 13-37-46 submitted to the Department of Education in accordance with rules

promulgated pursuant to § 13-37-1.1;

            (14)    "Fall enrollment," the number of kindergarten through twelfth grade pupils enrolled in all schools operated by the school district on the last Friday of September of the previous school year minus the number of students for whom the district receives tuition, except any nonresident student who is in the care and custody of a state agency and is attending a public school and any student for whom tuition is being paid pursuant to § 13-28-42.1, plus the number of students for whom the district pays tuition;
            (15)    "Nonpublic school," a sectarian organization or entity which is accredited by the secretary of education for the purpose of instructing children of compulsory school age. This definition excludes any school that receives a majority of its revenues from public funds;
            (16)    "Nonpublic fall enrollment," until June 30, 2008, the number of children under age sixteen, and beginning July 1, 2009, the number of children under age eighteen, who are approved for alternative instruction pursuant to § 13-27-2 on the last Friday of September of the previous school year plus:
            (a)    For nonpublic schools located within the boundaries of a public school district with a fall enrollment of six hundred or more on the last Friday of September of the previous school year, the number of kindergarten through twelfth grade pupils enrolled on the last Friday of September of the previous regular school year in all nonpublic schools located within the boundaries of the public school district;
            (b)    For nonpublic schools located within the boundaries of a public school district with a fall enrollment of less than six hundred on the last Friday of September of the previous school year, the number of resident kindergarten through twelfth grade pupils enrolled on the last Friday of September of the previous school year in all nonpublic schools located within the State of South Dakota;
            (17)    "Special education fall enrollment," fall enrollment plus nonpublic fall enrollment;
            (18)    "Local need," an amount to be determined as follows:
            (a)    Multiply the special education fall enrollment by 0.1004 and multiply the result by the allocation for a student with a level one disability;
            (b)    Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;
            (c)    Multiply the number of students having a level three disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level three disability;
            (d)    Multiply the number of students having a level four disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level four disability;
            (e)    Multiply the number of students having a level five disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level five disability;
            (f)    Multiply the number of students having a level six disability as reported on the child count for the previous school fiscal year by the allocation for a student with

a level six disability;

            (g)    When calculating local need at the statewide level, include the amount set aside for extraordinary costs defined in § 13-37-40;
            (h)    Sum the results of (a) through (f) to (g), inclusive;
            (19)    "Effort factor," for taxes payable in 2011, 2012, 2013, 2014, and 2015, the effort factor is the amount of taxes payable for the year divided by the amount of local effort as calculated in subdivision (7) the school district's special education tax levy in dollars per thousand divided by $1.352. The maximum effort factor is 1.0.

    Section 8. That § 13-37-36.1 be amended to read as follows:

    13-37-36.1. To establish the school district special education fund statutory carryover excluding federal funds, the following calculations shall be performed:

            (1)    Divide the total federal special education revenue by the total special education revenues; and
            (2)    Multiply the federal special education percentage calculated in (1) times the total special education fund balance; and
            (3)    Deduct the amount of federal revenue calculated in (2) from the special education fund balance, deduct from the total ending fund balance the amount of Title VIII of the Elementary and Secondary Education Act funds receipted or transferred to the special education fund.

    Section 9. That § 13-37-40 be amended to read as follows:
    13-37-40. Subject to the limitation in § 13-37-42, the secretary of the Department of Education shall, for school fiscal year 1999 2014 and each year thereafter, set aside 5.75% four million dollars of the state aid to districts for special education appropriation for extraordinary expenses incurred in providing special education programs or services to one or more children with disabilities, with expenditures to be made as recommended by an oversight board and approved by the secretary of the Department of Education. Any funds not expended or obligated pursuant to this section shall not be subject to reversion pursuant to § 4-8-19. The maximum amount not subject to reversion is equal to 5.75% of the state special education appropriation. The total amount set aside for extraordinary expenses each fiscal year plus the total amount not reverted from previous fiscal years may not exceed six million dollars.
    The amount appropriated for extraordinary expenses shall be recalculated at the same time as the amount of the allocations for disability levels as provided in § 13-37-35.2.

    Section 10. That § 13-37-40.1 be amended to read as follows:

    13-37-40.1. A school district is not eligible for funding from the money set aside in §§ 13-37-38 to 13-37-40, inclusive, unless the school district certifies to the secretary of education that its ending special education fund balance will not exceed five ten percent of its special education expenditures for the current fiscal year.



    Section 11. That § 13-37-44 be amended to read as follows:

    13-37-44. A school district's state aid for special education as calculated pursuant to § 13-37-36.1 or 13-37-51 shall be reduced by the amount which its ending special education fund balance exceeds twenty twenty-five percent of its special education expenditures for the prior fiscal year or fifty one hundred thousand dollars, whichever is greater, if the school district did not receive money set aside in § 13-37-40 during the prior fiscal year; or the amount which its ending special education fund balance exceeds five ten percent of its special education expenditures for the prior fiscal year if the school district received money set aside in §§ 13-37-38 to 13-37-40, inclusive, during the prior fiscal year.

    Section 12. That § 13-37-48.1 be repealed.

    13-37-48.1. In addition to the purposes specified in § 13-37-40, money set aside pursuant to § 13-37-40 may be used by the Department of Education to establish and maintain a program to assist school districts with legal matters relating to special education, to employ personnel to audit school districts for compliance with the provisions of §§ 13-37-36.1 to 13-37-52, to establish and maintain state protocols to assist school districts in developing individualized education plans, to support activities under Part C of the Individuals with Disabilities Education Act, Infants and Toddlers with Disabilities, or to purchase assistive technology for students with a level two, three, four, or five disability.

    Any approved K-12 application under the extraordinary cost fund must be funded prior to funding the Part C requests.

    Section 13. That § 13-37-51 be repealed.

    13-37-51. For the transition period from school fiscal year 2000 through school fiscal year 2003, state aid for special education shall be determined according to the following calculations:

            (1)    Multiply local need of a school district by 0.96 in school fiscal year 2000, 0.97 in school fiscal year 2001, 0.98 in school fiscal year 2002, and 0.99 in school fiscal year 2003;
            (2)    After making the adjustment to local need pursuant to subdivision (1) of this section, calculate state aid for special education pursuant to § 13-37-36.1;
            (3)    Subtract the result of subdivision (2) from the amount of state aid received pursuant to § 13-37-36.3 or 13-37-43 in school fiscal year 1999;
            (4)    Multiply the result of subdivision (3) by 0.80 in school fiscal year 2000, 0.60 in school fiscal year 2001, 0.40 in school fiscal year 2002, and 0.20 in school fiscal year 2003;
            (5)    Add the result of subdivision (2) to the result of subdivision (4);
            (6)    State aid for special education is the greater of the result of subdivision (2) or the result of subdivision (5).

    Section 14. That § 13-37-53 be repealed.

    13-37-53. If the parents or guardian of a child assigned to and enrolled in an out of district special education residential or tuition day program move to another South Dakota school district and that school district provides special education services to the child, the Department of Education shall allocate any state aid to special education attributable to the child received or scheduled to be received by the resident school district as defined by § 13-28-9.1 to the school district to which the parents or guardian have moved for the period of time that the resident school district is not providing special education services to the child. For the purposes of §§ 13-28-9.1 and 13-37-54, an approved special education program includes out-of-district residential programs and tuition day programs.

    Section 15. That § 13-37-54 be amended to read as follows:

    13-37-54. The Department of Education may promulgate rules pursuant to chapter 1-26 to provide for the reallocation of state aid to special education as provided for in §§ § 13-28-9.1 and 13-37-53.

    Section 16. That § 13-16-7.1 be amended to read as follows:

    13-16-7.1. For taxes payable in 2011, 2012, 2013, 2014, and 2015, the provisions of §§ 13-10-6, and 13-16-7, 13-37-16, and 13-37-35.1 that limit the maximum amount of revenue that may be generated by the pension, and capital outlay, and special education tax levies do not apply to any school district that has less than a ten percent change in the total taxable valuation from the previous year of all real property in the school district, not including the increase of value resulting from any improvements or change in use of real property. ".



Moved by:    Tidemann
Second by:    White
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 28 AS AMENDED

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Failed by roll call vote. (4-4-1-0)

Voting Yes:    Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Sutton, Jones, Novstrup (Al), Adelstein

Excused:    Van Gerpen

MOTION:    AMEND THE PENDING AMENDMENT

28md

    On the previously adopted amendment (28mc), in Section 9, delete "six million dollars" and insert "five million five hundred thousand dollars"
.

Moved by:    Tidemann
Second by:    White
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 28 AS AMENDED

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (6-2-1-0)

Voting Yes:    Sutton, Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Voting No:    Jones, Novstrup (Al)

Excused:    Van Gerpen

MOTION:    AMEND TITLE OF SB 28

28mta

    On page 1, line 1, of the printed bill, delete everything after "revise" and insert "certain property tax levies for school districts and to revise certain provisions regarding state aid to education.".

    On page 1, delete line 2.


Moved by:    Tidemann
Second by:    White
Action:    Prevailed by voice vote.

        SB 218: establish a program to assist rural counties to recruit attorneys.

MOTION:    AMEND SB 218



218oe

    On page 2, after line 5, of the Senate Judiciary Committee engrossed bill, insert:

"
    Section 3. In making the selection of the participating counties, the Unified Judicial System shall be guided by:

            (1)    Demographics of the county;

            (2)    Age and number of the current membership of the county bar;

            (3)    Recommendation of the presiding circuit judge;

            (4)    Programs of economic development within the county;

            (5)    Geographical location to other counties receiving assistance;

            (6)    Evaluation of the law student or attorney seeking assistance under this program;

            (7)    Existing or previous ties of the applicant to the county; and

            (8)    Prior participation by the county in this pilot program.".

On page 3, after line 23, insert:

"
    Section 9. The Unified Judicial System shall annually file with the Legislative Research Council a report on the status of the program.".



Moved by:    Tidemann
Second by:    White
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 218 AS AMENDED

Moved by:    Sutton
Second by:    Tidemann
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DEFER SB 218 TO THE 41ST LEGISLATIVE DAY

Moved by:    Adelstein
Action:    Died for lack of a second.

MOTION:    AMEND THE PENDING AMENDMENT

218mc

    In the previously adopted amendment (218mb), in Section 9, delete "six hundred ninety-seven thousand four hundred twenty-seven dollars ($697,427)" and insert "one dollar ($1)".


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 218 AS AMENDED

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

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Tidemann, Peters

Voting No:    Adelstein

Excused:    Van Gerpen

        SB 15: revise certain provisions regarding state aid to special education.

Others:    Melody Schopp, Department of Education
        Dick Tieszen, Sioux Falls School District (Handouts: No. 5)

MOTION:    AMEND SB 15

15cf

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

    "    Section 4. That chapter 13-37 be amended by adding thereto a NEW SECTION to read as

follows:

    Up to fifteen percent of the local need as defined in subdivision 13-37-35.1(18) may be used to develop and implement coordinated, early intervening services for students in kindergarten through grade twelve who are not currently identified as needing special education or special education and related services, but who need additional academic and behavioral interventions to succeed in a general education environment to prevent them from being identified as having a special education disability.

    Coordinated, early intervening services include:

            (1)    Professional development for teachers and other school staff to enable them to deliver scientifically-based academic instruction and behavioral interventions, including scientifically-based literacy instruction, and, if appropriate, instruction on the use of adaptive and instructional software; and

            (2)    Providing educational and behavioral evaluations, services and supports, including scientifically-based literacy instruction.

    Section 2. That chapter 13-37 be amended by adding thereto a NEW SECTION to read as follows:

    A school district seeking to use funds pursuant to section 1 of this Act shall apply for approval for the use of such funds from the Department of Education on forms provided by the department.

    Section 3. That chapter 13-37 be amended by adding thereto a NEW SECTION to read as follows:

    Any school district that uses funds pursuant to section 1 of this Act shall annually report to the Department of Education on:

            (1)    The number of students who receive coordinated, early intervening services; and

            (2)    The number of students who received early intervening services, and who subsequently receive special education or special education and related services within two years after receiving the coordinated, early intervening services.

    Section 4. That chapter 13-37 be amended by adding thereto a NEW SECTION to read as follows:

    The Board of Education shall promulgate rules pursuant to chapter 1-26 establishing the application process, the application timelines, the criteria the department will use in approving a

district's use of special education funds pursuant to section 1 of this Act, and the collection of data on children served pursuant to section 3 of this Act.

    Section 5. That chapter 13-37 be amended by adding thereto a NEW SECTION to read as follows:

    A school district that provides early intervening services pursuant to section 16 of this Act is not eligible for funding from the money set aside pursuant to § 13-37-40 within a period of three years following the expenditure of such funds."


Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 15 AS AMENDED

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Heineman (Phyllis), White, Adelstein, Tidemann, Peters

Excused:    Van Gerpen

MOTION:    AMEND TITLE OF SB 15

15ctb

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "provide for expenditures for early learning services from the special education fund.".

    On page 1, delete line 2.


Moved by:    Tidemann
Second by:    Sutton
Action:    Prevailed by voice vote.

        SB 163: establish uninsured motorist identification database program.

Presented by:    Senator Deb Peters
Proponents:    Matt Krogman, Insure-Rite Incorporated
Opponents:    Dick Tieszen, State Farm Insurance
        Mike Shaw, DeSmet Insurance Company of SD
        Mike Mores, Farmers Insurance
        Drew Duncan, SD Insurance Alliance
        Doug Abraham, Property Casualty Insurers Association of America
        Deb Hillmer, Division of Motor Vehicles (Handouts: No.6)

MOTION:    AMEND SB 163

163da

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

    "    Section 1. Terms used in this Act mean:

            (1)    "Database," the auto insurance verification database created by this Act;

            (2)    "Designated agent," the third party that the division contracts with pursuant to this Act;

            (3)    "Division," the Division of Motor Vehicles under the Department of Revenue;

            (4)    "Motor vehicle," a noncommercial motor vehicle for which license fees are determined pursuant to §§ 32-5-6, 32-5-6.1, 32-5-6.3, and 32-5-9 and a commercial motor vehicle for which license fees are determined pursuant to chapter 32-9;

            (5)    "Program," the auto insurance verification program created under this Act.

    Section 2. There is created the auto insurance verification program to:

            (1)    Establish an auto insurance verification database to verify compliance with motor vehicle owner's or operator's security requirements established by this Act;

            (2)    Assist in reducing the number of uninsured motor vehicles on the highways of the state;

            (3)    Assist in protecting a financial institution's bona fide security interest in a motor vehicle; and

            (4)    For other law enforcement purposes.

    Section 3. The auto insurance verification program shall be administered by the division with the assistance of the designated agent. The division shall enter into a contract with a third party to establish and maintain an auto insurance verification database for the purposes established under this Act. The third party under contract under this section is the division's designated agent.

    Section 4. The third party shall develop and maintain a computer database from the information provided by:

            (1)    Insurers under sections 23 to 28, inclusive, of this Act, relating to motor vehicle insurance reporting; and

            (2)    The Division of Motor Vehicles.

    Section 5. The database shall be developed and maintained in accordance with guidelines established by the division so that state and local law enforcement agencies and financial institutions may efficiently access the records of the database, including reports useful for the implementation of the provisions of this Act.

    Section 6. The reports shall be in a form and contain information approved by the division. The reports may be made available through the internet or through other electronic medium, if the division determines that sufficient security is provided to ensure compliance with the provisions of this Act regarding limitations on disclosure of information in the database.

    Section 7. With information provided by the division, the designated agent shall, at least twice monthly:

            (1)    Update the database with the motor vehicle insurance information provided by the insurers in accordance with sections 23 to 28, inclusive, of this Act, regarding motor vehicle insurance reporting; and

            (2)    Compare all current motor vehicle registrations against the database.

    Section 8. The division shall provide the designated agent with the name, date of birth, address, and driver license number of each person on the driver license database.

    Section 9. The designated agent shall archive computer data files at least semiannually for auditing purposes. The division may annually audit the program. If the audit is performed, the audit shall include verification of the billings made by the designated agent and the accuracy of the designated agent's matching of vehicle registration with insurance data.

    Section 10. If the comparison required under the auto insurance verification database created by this Act shows that a motor vehicle is not insured for three consecutive months, the division shall

direct that the designated agent to notify the owner of the motor vehicle that the owner has fifteen days to provide:

            (1)    Proof of the owner's or operator's security in a form allowed under the provisions of this Act; or

            (2)    Proof of exemption from the owner's or operator's security requirements.

    Section 11. If an owner of a motor vehicle fails to provide satisfactory proof of owner's or operator's security to the designated agent, the designated agent shall:

            (1)    Provide a second notice to the owner of the motor vehicle that the owner now has fifteen days to provide proof of owner's or operator's security in a form allowed under the provisions of this Act or proof of exemption from the owner's or operator's security requirements;

            (2)    For each notice provided, the designated agent shall indicate information relating to the owner's failure to provide proof of owner's or operator's security in the database; and

            (3)    Provide this information to state and local law enforcement agencies as requested in accordance with the provisions of this Act.

    Any owner of a motor vehicle who provides a false or fraudulent proof of owner's or operator's security to the division or designated agent is guilty of a Class 2 misdemeanor.

    Section 12. The division shall revoke the registration of the motor vehicle upon receiving notification from the designated agent of the owner's failure to comply with the provisions of section 11 of this Act. The division shall provide appropriate notices of the revocation, the legal consequences of operating a vehicle with revoked registration, and without owner's or operator's security and instructions on how to get the registration reinstated. The division may direct the designated agent to provide the notices required by this section.

    Section 13. Any action by the division to revoke the registration of a motor vehicle pursuant to this Act may be in addition to an action by a law enforcement agency to impose criminal penalties pursuant to this Act.

    Section 14. This Act does not affect other actions or penalties that may be taken or imposed for violation of the owner's and operator's security requirements of this Act or any other law.

    Section 15. No registration that has been revoked pursuant to this Act may be reinstated and no new license or registration may be issued to the holder of the revoked registration until the person pays an administrative reinstatement fee of one hundred dollars to the division and complies with

the other provisions of this Act. The fee imposed by this section is in addition to any other fee imposed by law and shall be deposited in the uninsured motor vehicle fund established by section 16 of this Act.

    Section 16. There is hereby created in the state treasury the uninsured motor vehicle fund for the purpose of paying the expenses for the auto insurance verification program. Interest earned on money in the fund shall be deposited into the fund. Expenditures from this fund shall be appropriated through the normal budgeting process.

    Section 17. Information in the database established under this Act provided by any person to the designated agent is considered to be the property of the person providing the information. No information may be disclosed from the database pursuant to chapter 1-27, or otherwise, except as follows:

            (1)    For the purpose of investigating, litigating, or enforcing the owner's or operator's security requirement under this Act, the designated agent shall verify insurance information through the state computer network for a state or local government agency or court;

            (2)    For the purpose of investigating, litigating, or enforcing the owner's or operator's security requirement under this Act, the designated agent shall, upon request, issue to any state or local government agency or court a certificate documenting the insurance information, according to the database, of a specific person or motor vehicle for the time period designated by the government agency;

            (3)    Upon request, the division or its designated agent shall disclose whether or not a person is an insured individual and the insurance company name to:

            (a)    That person or, if that person is deceased, any interested person of that person, as defined in Title 29A;

            (b)    The parent or legal guardian of that person if the person is not an unemancipated minor;

            (c)    The legal guardian of that person if the person is legally incapacitated;

            (d)    A person who has power of attorney from the insured person;

            (e)    A person who submits a notarized release from the insured person dated no more than ninety days before the date the request is made; or

            (f)    A person suffering loss or injury in a motor vehicle accident in which the insured individual is involved, but only as part of an accident report as provided by § 32-

12-61;

            (4)    For the purpose of investigating, enforcing, or prosecuting laws or issuing citations by state or local law enforcement agencies related to the:

            (a)    Registration and renewal of registration of a motor vehicle pursuant to chapter 32-5;

            (b)    Purchase of a motor vehicle; and

            (c)    Maintenance of financial responsibility required by § 32-35-113;

            (5)    Upon request of a law enforcement officer acting in an official capacity under the provisions of subdivision (4) of this section, the division or the designated agent shall, upon request, disclose relevant information for investigation, enforcement, or prosecution;

            (6)    For the purpose of the division or other auditor of the state conducting audits of the program; and

            (7)    Upon request of a financial institution as defined in subdivision 10-43-1(4) for the purpose of protecting the financial institution's bona fide security interest in a motor vehicle.

    Section 18. The division may allow the designated agent to prepare and deliver upon request, a report on the insurance information of a person or motor vehicle in accordance with this section. The report may be in the form of:

            (1)    A certified copy that is considered admissible in any court proceeding in the same manner as the original; or

            (2)    Information accessible through the internet or through other electronic medium if the division determines that sufficient security is provided to ensure compliance with this Act.

    Section 19. Any person who knowingly releases or discloses information from the database for a purpose other than those authorized by this Act or to a person who is not entitled to the information is guilty of a Class 6 felony.

    Section 20. No insurer is liable to any person for complying with this Act requiring motor vehicle insurance reporting by providing information to the designated agent.

    Section 21. Neither the state nor the designated agent are liable to any person for gathering, managing, or using the information in the database as provided in this Act.



    Section 22. For the purposes of this Act, the term, commercial motor vehicle insurance coverage, means an insurance policy that includes motor vehicle liability coverage, uninsured motorist coverage, underinsured motorist coverage, or personal injury coverage.

    Section 23. Each insurer that issues a policy that includes motor vehicle liability coverage, uninsured motorist coverage, underinsured motorist coverage, or personal injury coverage shall submit to the designated agent a record of each motor vehicle insurance policy in effect for any vehicle registered or garaged in the state. The record shall be submitted to the designated agent before the seventh and twenty-first day of each month as the previous submission that was issued by the insurer.

    Section 24. Each insurer that issues commercial motor vehicle insurance coverage shall, before the seventh day of each month, provide to the designated agent a record of each commercial motor vehicle insurance policy in effect for any vehicle registered or garaged in the state as of the previous month that was issued by the insurer.

    Section 25. Any record provided by an insurer pursuant to section 23 of this Act shall include:

            (1)    The name, date of birth, and driver license number, if the insured provides a driver license number to the insurer, of each insured owner or operator, and the address of the named insured;

            (2)    The make, year, and vehicle identification number of each insured vehicle; and

            (3)    The policy number and effective date of each policy.

    Each insurer shall provide this information by an electronic means or by another form the designated agent agrees to accept.

    Section 26. Any record provided by an insurer pursuant to section 24 of this Act shall include:

            (1)    The named insured;

            (2)    The policy number, effective date, and expiration date of each policy; and

            (3)    The following information, if available:

            (a)    The name, date of birth, and driver license number of each insured owner or operator, and the address of the named insured; and

            (b)    The make, year, and vehicle identification number of each insured vehicle.

    Each insurer shall provide this information by an electronic means or by another form the designated agent agrees to accept.

    Section 27. The secretary of the Department of Revenue may assess a civil penalty against an insurer of up to two hundred fifty dollars for each day the insurer fails to comply with this Act. If an insurer shows that the failure to comply with the provisions of this Act was inadvertent, accidental, or the result of excusable neglect, the secretary shall excuse the civil penalty. Any money collected pursuant to this section shall be deposited in the uninsured motor vehicle fund established by section 16 of this Act.

    Section 28. There is hereby appropriated from the general fund the sum of one dollar ($1) to the Department of Revenue for the purpose of conducting an uninsured motorist identification database. The division shall contract with a designated agent by October 1, 2013, to determine the feasibility of the program. The designated agent shall implement the provisions of the program established by this Act and report its findings to the division on the percentage of uninsured motor vehicles in the state. The report shall be submitted to the division by February 28, 2014.

    However, notification to the owner that the owner's motor vehicle is noncompliant with the provisions of this Act is not required in this initial report. Nor may the division impose any fees imposed by section 15 of this Act before July 1, 2014.

    If the initial report shows the percentage of uninsured motor vehicles in South Dakota is less than ten percent, then the contract with the designated agent shall be voided by June 30, 2014. Any amounts appropriated in this section not lawfully expended or obligated by June  30, 2014, if the program is voided, shall revert in accordance with the procedures prescribed in chapter 4-8. If the initial report shows the percentage of uninsured motor vehicles is ten percent or greater, the division and the designated agent shall implement all of the provisions of this Act beginning on July 1, 2014. The contract with the designated agent shall extend until June 30, 2016.

    Section 29. The secretary of revenue shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 30. Any amounts appropriated in this Act not lawfully expended or obligated by June  30, 2016, shall revert in accordance with the procedures prescribed in chapter 4-8."



Moved by:    Peters
Second by:    Jones
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 163 AS AMENDED

Moved by:    Jones
Second by:    Novstrup (Al)
Action:    Failed by roll call vote. (4-3-2-0)

Voting Yes:    Jones, Novstrup (Al), Heineman (Phyllis), Peters

Voting No:    Sutton, White, Tidemann

Excused:    Van Gerpen, Adelstein

MOTION:    TO TABLE SB 163

Moved by:    Sutton
Second by:    White
Action:    Failed by roll call vote. (4-3-2-0)

Voting Yes:    Sutton, Heineman (Phyllis), White, Tidemann

Voting No:    Jones, Novstrup (Al), Peters

Excused:    Van Gerpen, Adelstein

MOTION:    AMEND THE PENDING AMENDMENT

163ma

    On the previously adopted amendment (163da), in Section 30, delete "2016" and insert "2015".


Moved by:    Peters
Second by:    Novstrup (Al)
Action:    Failed by roll call vote. (3-4-2-0)

Voting Yes:    Sutton, Jones, Peters

Voting No:    Novstrup (Al), Heineman (Phyllis), Adelstein, Tidemann

Excused:    White, Van Gerpen

MOTION:    AMEND THE PENDING AMENDMENT

163db

    On the previously adopted amendment (163da), in Section 28, in the last sentence delete "2016" and insert "2015".


Moved by:    Peters
Second by:    Novstrup (Al)
Action:    Failed by roll call vote. (4-4-1-0)

Voting Yes:    Jones, Novstrup (Al), Adelstein, Peters

Voting No:    Sutton, Heineman (Phyllis), White, Tidemann

Excused:    Van Gerpen

MOTION:    WITHOUT RECOMMENDATION SB 163 AS AMENDED

Moved by:    Adelstein
Second by:    Novstrup (Al)
Action:    Prevailed by roll call vote. (5-3-1-0)

Voting Yes:    Sutton, Jones, Novstrup (Al), Adelstein, Peters

Voting No:    Heineman (Phyllis), White, Tidemann

Excused:    Van Gerpen

MOTION:    ADJOURN

Moved by:    Tidemann
Second by:    Heineman (Phyllis)
Action:    Prevailed by voice vote.

Barb Bjorneberg

____________________________

Committee Secretary
Deb Peters, Chair


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