89th Legislative Session _ 2014

Committee: Senate Commerce and Energy
Tuesday, February 04, 2014

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Holien, Chair
P    Lederman, Vice-Chair
P    Begalka
P    Jensen
P    Jones (Chuck)
P    Maher
P    Buhl O'Donnell

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Holien, Chair.

MOTION:    TO APPROVE THE MINUTES OF JANUARY 28, 2014

Moved by:    Lederman
Second by:    Jensen
Action:    Prevailed by voice vote.

    SB 78: repeal certain outdated and obsolete provisions regarding the Commissioner of South Dakota.

Presented by:    Jim Seward, Office of the Governor

MOTION:    DO PASS SB 78

Moved by:    Jensen
Second by:    Lederman
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Holien, Lederman, Begalka, Jensen, Jones (Chuck), Maher, Buhl O'Donnell


MOTION:    PLACE SB 78 ON CONSENT CALENDAR

Moved by:    Jones (Chuck)
Second by:    Jensen
Action:    Prevailed by voice vote.

MOTION:    TO INTRODUCE AT THE REQUEST OF THE GOVERNOR THE FOLLOWING BILL:

AN ACT TO REVISE ELECTRONIC DRIVER LICENSE RENEWAL REQUIREMENTS AND TO ALLOW ELECTRONIC UPGRADES OF RESTRICTED MINOR'S PERMITS.

Moved by:    Jones (Chuck)
Second by:    Jensen
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Holien, Lederman, Begalka, Jensen, Jones (Chuck), Maher, Buhl O'Donnell

    SB 79: repeal certain outdated and obsolete provisions regarding the federal census.

Presented by:    Debra Owen, Bureau of Human Resources

MOTION:    DO PASS SB 79

Moved by:    Jones (Chuck)
Second by:    Lederman
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Holien, Lederman, Begalka, Jensen, Jones (Chuck), Maher, Buhl O'Donnell

MOTION:    PLACE SB 79 ON CONSENT CALENDAR

Moved by:    Begalka
Second by:    Buhl O'Donnell
Action:    Prevailed by voice vote.

    HB 1045: revise unemployment insurance contribution rates.

Presented by:    Marcia Hultman, Department of Labor and Regulation
Proponents:    Pauline Heier, Department of Labor & Regulation
        David Owen SD Chamber of Commerce & Industry
        Shawn Lyons, SD Retailers Association

        Lindsey Riter-Rapp, National Federation of Independent Business
        Deb Mortenson, Associated General Contractors of SD
        Julie Johnson, Absolutely Aberdeen
Others:    Dusty Johnson, Office of the Governor
        Julie Johnson, self

MOTION:    AMEND HB 1045

1045ja

    On page 4, after line 10 of the printed bill, insert:

"    Section 2. That § 61-5-29 be amended to read as follows:

    61-5-29. Employers required by this title to pay contributions, except employers that pursuant to chapter 61-5A reimburse the unemployment compensation trust fund for benefits paid in lieu of contributions, shall also pay an employer's investment in South Dakota's future fee, hereinafter "investment fee," on wages as defined by this title. The fee rate for employers not eligible for experience rating, as defined in § 61-5-24, shall be seventy hundredths percent through calendar year 2006 and fifty-five hundredths percent on and after January 1, 2007. If an employer is eligible for experience rating, the employer's reserve ratio shall be determined pursuant to § 61-5-25.2 and the employer's investment fee rate shall be the rate appearing in column "A" on the same line on which the employer's reserve ratio appears in column "B" of the following rate schedules.

    From January 1, 1993, to December 31, 2006, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.70%        Less than 0.80%  
0.60%       0.80% and Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    From January 1, 2007, to December 31, 2007, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.60%       Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    From January 1, 2008, to December 31, 2008, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.58%       Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    From January 1, 2009, to December 31, 2009, inclusive:
Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.56%       Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    From January 1, 2010, to December 31, 2010, inclusive:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.55%       Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    Beginning January 1, 2011:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.53%       Less than 1.00%  
0.50%       1.00% and Less than 1.20%  
0.40%       1.20% and Less than 1.30%  
0.30%       1.30% and Less than 1.40%  
0.20%       1.40% and Less than 1.50%  
0.10%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    Beginning January 1, 2015:

Column "A"  
Column "B"
 
Investment Fee Rate  
Reserve Ratio
 
0.50%       Less than 1.00%  
0.47%       1.00% and Less than 1.20%  
0.37%       1.20% and Less than 1.30%  
0.27%       1.30% and Less than 1.40%  
0.17%       1.40% and Less than 1.50%  
0.07%       1.50% and Less than 1.60%  
0.00%       1.60% and Over  

    The terms and conditions of this title which apply to the payment and collection of contributions also apply to the payment and collection of the investment fee. Proceeds from the investment fee shall be deposited in the clearing account of the unemployment compensation fund for clearance only and may not become part of the fund. After clearance, the money derived from such payments, less refunds made pursuant to the provisions of this title, shall be deposited in the employer's investment in South Dakota's future special revenue fund as provided for in § 61-5-29.1. Investment fee payments may not be credited to the employer's experience rating account and may not be deducted in whole or in part by any employer from the wages of individuals in its employ.

    The investment fee rate may not be increased over the applicable 1987 investment fee rate for any employer with a positive balance in the employer's experience rating account on the computation date, as established in rules promulgated by the secretary of labor and regulation pursuant to chapter 1-26, for the current year and the year preceding the current year.

    The investment rates provided in this section apply to and are retroactive to taxable wages paid

on and after January 1, 1993. ".



Moved by:    Maher
Second by:    Buhl O'Donnell
Action:    Was not acted on.

        THE CHAIR DEFERRED HB 1045 WITH PENDING AMENDMENT UNTIL FEBRUARY 6, 2014

    HB 1046: revise certain provisions regarding licenses issued by the State Plumbing Commission and the fees that may be set by the commission.

Presented by:    Mike Richards, Director of Plumbing
Proponents:    Robert Riter, Plumbing, Heating, and Cooling Contractors

MOTION:    DO PASS HB 1046

Moved by:    Lederman
Second by:    Buhl O'Donnell
Action:    Prevailed by roll call vote. (5-2-0-0)

Voting Yes:    Holien, Lederman, Begalka, Jones (Chuck), Buhl O'Donnell

Voting No:    Jensen, Maher

    HB 1049: establish and revise certain provisions regarding the South Dakota Athletic Commission.

Presented by:    Jennifer Stalley, Executive Dir. Athletic Commission

MOTION:    DO PASS HB 1049

Moved by:    Lederman
Second by:    Buhl O'Donnell
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Holien, Lederman, Begalka, Jensen, Jones (Chuck), Maher, Buhl O'Donnell

    HB 1061: include limited liability companies in certain provisions regarding the licensing of boats and motor vehicles and certain provisions regarding the dealers and manufacturers of certain vehicles, manufactured homes, and mobile homes.

Presented by:    Peggy Laurenz, Department of Revenue
Proponents:    Margo Northrup, SD Manufactured Housing Association

MOTION:    DO PASS HB 1061

Moved by:    Maher
Second by:    Buhl O'Donnell
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Holien, Lederman, Begalka, Jensen, Jones (Chuck), Maher, Buhl O'Donnell

MOTION:    PLACE HB 1061 ON CONSENT CALENDAR

Moved by:    Buhl O'Donnell
Second by:    Lederman
Action:    Prevailed by voice vote.

MOTION:    ADJOURN

Moved by:    Jones (Chuck)
Second by:    Buhl O'Donnell
Action:    Prevailed by voice vote.

Charlotte Conway

____________________________

Committee Secretary
Ried S. Holien, Chair

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