88
th Legislative Session _ 2013
Committee: Senate State Affairs
Wednesday, February 27, 2013
P - Present
E - Excused
A - Absent
Roll Call
P Olson (Russell), Vice-Chair
P Rave
P Lucas
P Rhoden, Chair
P Brown
P Tieszen
P Frerichs
P Lederman
P Johnston
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Senator Larry Rhoden, Chair.
MOTION: TO APPROVE THE MINUTES OF MONDAY, FEBRUARY 25, 2013
Moved by: Rave
Second by: Brown
Action: Prevailed by voice vote.
HB 1056: revise various trust and trust company provisions.
Presented by: Bret Afdahl, SD Division of Banking
Proponents: Patrick Goetzinger, Self, Rapid City
MOTION: DO PASS HB 1056
Moved by: Tieszen
Second by: Rave
Action: Prevailed by roll call vote. (7-0-2-0)
Voting Yes: Rave, Lucas, Rhoden, Brown, Tieszen, Lederman, Johnston
Excused: Olson (Russell), Frerichs
MOTION: PLACE HB 1056 ON CONSENT CALENDAR
Moved by: Rave
Second by: Brown
Action: Prevailed by voice vote.
HB 1061: revise certain provisions related to the regulation of captive insurance
companies.
Presented by: Mallori Barnett, Department of Labor and Regulation
Proponents: Tom Barnett, State Bar Association of South Dakota
Matthew McCaulley, SD Trust, Delta Trust, Biltmore Captive Trust.
MOTION: DO PASS HB 1061
Moved by: Lederman
Second by: Olson (Russell)
Action: Prevailed by roll call vote. (8-0-1-0)
Voting Yes: Olson (Russell), Rave, Lucas, Rhoden, Brown, Tieszen, Lederman, Johnston
Excused: Frerichs
HB 1237: revise certain provisions to abortion counseling.
Presented by: Senator Phyllis Heineman
Representative Jon Hansen
Proponents: Brittany Weston, Yankton, SD, self
Glenn Ridder, MD, Alpha Center, Sioux Falls, SD
Roger Hunt, Brandon, self
Opponents: Tiffany Campbell, American Civil Liberties Union of SD
Representative Karen Soli
Senator Stanford Adelstein
Alisha Sedor, NARAL Pro-Choice, SD
Representative Kathy Tyler
Karl Kroger, Pierre, self
MOTION: DO PASS HB 1237
Moved by: Lederman
Second by: Rave
Action: Prevailed by roll call vote. (6-3-0-0)
Voting Yes: Olson (Russell), Rave, Rhoden, Brown, Lederman, Johnston
Voting No: Lucas, Tieszen, Frerichs
HB 1098: increase the bonding limit for the four technical institutes.
Presented by: Representative Mark Mickelson
Proponents: Jeff Holcomb, Southeast Technical Institute
Mark Wilson, Western Dakota Tech
Senator Mark Kirkeby
MOTION: AMEND HB 1098
1098ca
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That chapter 1-16A be amended by adding thereto a NEW SECTION to read as
follows:
Beginning July 1, 2013, any bonds, notes or other obligations of the authority which are payable
out of receipts, rentals, and other payments made pursuant to lease purchase agreements with the
Western Dakota Technical Institute, the Southeast Technical Institute, the Lake Area Technical
Institute, the Mitchell Technical Institute, or the South Dakota Board of Education under the
authority of chapter 13-39 may only be issued if the Board of Education determines, by the adoption
of a resolution, that the estimated receipts, rentals, and other payments, including appropriations by
the Legislature, student fee payments, or other balances or revenues pledged under the applicable
bond indenture or similar agreement will not be less than one hundred three percent of the projected
scheduled payments of principal and interest on all outstanding bonds which, for purposes of that
determination shall include the proposed bonds to be issued and shall exclude any bonds to be
refunded. In issuing additional bonds, the authority may conclusively rely upon the determination
of the board.
Section 2. That chapter 1-16A be amended by adding thereto a NEW SECTION to read as
follows:
The South Dakota Board of Education shall promulgate rules pursuant to chapter 1-26
establishing a methodology for forecasting anticipated contributions from student tuition and fees
and additional state appropriations available pursuant to a lease purchase agreement to meet the
projected scheduled payments of principal and interest on all outstanding bonds and other
benchmarks.
Section 3. That chapter 1-16A be amended by adding thereto a NEW SECTION to read as
follows:
Beginning on July 1, 2013, the issuance of any additional bonds, notes, or other obligations shall
be approved by the Legislature before issuance. This requirement, however, does not apply to the
issuance of bonds for the purposes of refinancing or refunding existing bonds, notes, or other
obligations.
Section 4. The issuance by the Health and Educational Facilities Authority of additional bonds,
notes, or other obligations in a principal amount not to exceed eighteen million five hundred
thousand dollars for a lease purchase agreement with the Western Dakota Technical Institute to
finance the acquisition, construction, and other costs associated with technical lab space and
classrooms for various programs, including diesel technician and technology, agriculture science,
construction technology, fire science, paramedic and emergency medical technicians, and to remodel
the South Mickelson building is hereby authorized and approved.
Section 5. The issuance by the Health and Educational Facilities Authority of additional bonds,
notes, or other obligations in a principal amount not to exceed twenty million dollars for a lease
purchase agreement with the Southeast Technical Institute to finance the acquisition, construction,
and other costs associated with a transportation technology center to house various technical
programs, including diesel, auto, and auto body collision programs and other facility improvements
necessary for other programs is hereby authorized and approved.
Section 6. Beginning in fiscal year 2015, payments made pursuant to lease purchase agreements
with the Western Dakota Technical Institute, the Southeast Technical Institute, the Lake Area
Technical Institute, the Mitchell Technical Institute, or the South Dakota Board of Education under
the authority of chapter 13-39 shall be paid in part from an appropriation to be made by the
Legislature in an amount that is equal to or greater than fifty percent of the technical institute facility
fee that is administered by the Department of Education.
Section 7. That § 1-16A-77 be repealed.
1-16A-77. The aggregate outstanding principal amount of bonds, notes, or other obligations of
the authority which are payable out of receipts, rentals, and other payments made pursuant to lease
purchase agreements with an LEA or the South Dakota Board of Education under the authority of
chapter 13-39, may not exceed one hundred five million dollars for obligations issued by the
authority in connection with any lease-purchase agreement with the Western Dakota Technical
Institute, the Southeast Technical Institute, the Lake Area Technical Institute or the Mitchell
Technical Institute. However, at the option of the authority to be expressed in a resolution or an
indenture which authorizes or authorized any refunding bonds, the principal amount of the bonds,
notes, or other obligations which are issued to refund, pay, discharge, or defease any outstanding
bonds, notes, or other obligations or which are, as a result of issuance of any such refunding
obligations, deemed to be paid, discharged, or defeased by reason of an irrevocable deposit of cash
or securities, may be excluded from the total principal amount of obligations of the authority for the
purpose of determining compliance with the limitation of this section. "
Moved by: Johnston
Second by: Rave
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1098 AS AMENDED
Moved by: Johnston
Second by: Brown
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Olson (Russell), Rave, Lucas, Rhoden, Brown, Tieszen, Frerichs, Lederman,
Johnston
MOTION: AMEND TITLE OF HB 1098
1098cta
On page 1, line 1, of the printed bill, delete everything after "An Act to" and insert "provide
for bonding authorization for the postsecondary technical institutes and to authorize bonds for lease
purchase agreements with Western Dakota Technical Institute and Southeast Technical Institute.".
On page 1, delete line 2.
Moved by: Rave
Second by: Johnston
Action: Prevailed by voice vote.
HB 1045: revise certain provisions regarding alternative apportionment methods
available for determination of the bank franchise tax.
Presented by: Andy Gerlach, Department of Revenue
Curt Everson, SD Bankers Association
MOTION: AMEND HB 1045
1045jb
On page 2 of the House State Affairs Committee engrossed bill, delete lines 2 and 3, and insert
"The secretary shall promulgate rules pursuant to chapter 1-26 within six months of any decision
to use any of the alternative apportionment methods provided under this section.".
Moved by: Olson (Russell)
Second by: Frerichs
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1045 AS AMENDED
Moved by: Johnston
Second by: Rave
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Olson (Russell), Rave, Lucas, Rhoden, Brown, Tieszen, Frerichs, Lederman,
Johnston
HB 1170: revise certain provisions for a secondary election if the candidates for the
United States Senate, United States House of Representatives, or Governor do not
receive a sufficient percentage of the votes cast during a primary election.
Presented by: Senator Mark Kirkeby
Proponents: Jason Gant, Office of the Secretary of State
MOTION: DO PASS HB 1170
Moved by: Brown
Second by: Tieszen
Action: Prevailed by roll call vote. (8-0-1-0)
Voting Yes: Olson (Russell), Lucas, Rhoden, Brown, Tieszen, Frerichs, Lederman, Johnston
Excused: Rave
MOTION: PLACE HB 1170 ON CONSENT CALENDAR
Moved by: Johnston
Second by: Olson (Russell)
Action: Prevailed by voice vote.
HB 1209: prohibit certain persons who fail to pay certain campaign finance related
penalties from running for office.
Presented by: Representative Kristin Conzet
Proponents: Jason Gant, Office of the Secretary of State
MOTION: DO PASS HB 1209
Moved by: Lucas
Second by: Johnston
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Olson (Russell), Rave, Lucas, Rhoden, Brown, Tieszen, Frerichs, Lederman,
Johnston
MOTION: PLACE HB 1209 ON CONSENT CALENDAR
Moved by: Brown
Second by: Johnston
Action: Prevailed by voice vote.
MOTION: ADJOURN
Moved by: Rave
Second by: Brown
Action: Prevailed by voice vote.
Jill Wellhouse
_______________________________
Committee Secretary
Larry Rhoden, Chair
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