88
th 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 41
ST 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
../02190800.SAP
Page 1