89^th Legislative Session _ 2014

Committee: House State Affairs

Friday, February 07, 2014

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Conzet
P    Gibson
P    Gosch
P    Hunhoff (Bernie)
P    Killer
E    Munsterman
P    Novstrup (David)
P    Parsley
P    Verchio
P    Westra
P    Wink
P    Cronin, Vice-Chair
P    Lust, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Lust.

MOTION:    TO APPROVE THE MINUTES OF WEDNESDAY JANUARY 5^TH, 2014

Moved by:    Gibson
Second by:    Westra
Action:    Prevailed by voice vote.

    HB 1101: revise certain provisions regarding the board of directors of the Science and Technology Authority.

Presented by:    Tony Venhuizen, Office of the Governor
Proponents:    Jack Warner, Board of Regents
        Mike Headley, Science and Technology Authority.

MOTION:    DO PASS HB 1101

Moved by:    Wink
Second by:    Westra
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Conzet, Gibson, Gosch, Hunhoff (Bernie), Killer, Novstrup (David), Parsley, Verchio, Westra, Wink, Cronin, Lust

Excused:    Munsterman

MOTION:    PLACE HB 1101 ON CONSENT CALENDAR

Moved by:    Cronin
Second by:    Wink
Action:    Prevailed by voice vote.

    HB 1201: revise the bank franchise tax apportionment of income provisions.

Presented by:    Andy Gerlach, Department of Revenue (Handout: 1)
Proponents:    Curt Everson, SD Bankers Association
        Dean Krogman, Independent Community Bankers of SD
        David Owen SD Chamber of Commerce & Industry

MOTION:    DO PASS HB 1201

Moved by:    Gosch
Second by:    Conzet
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Conzet, Gibson, Gosch, Hunhoff (Bernie), Killer, Novstrup (David), Parsley, Verchio, Westra, Wink, Cronin, Lust

Excused:    Munsterman

    HB 1200: revise certain bank franchise tax provisions regarding net income and net operating losses.

Presented by:    Jason Evans, Department of Revenue
Proponents:    Dean Krogman, Independent Community Bankers of SD

MOTION:    AMEND HB 1200

On page 5, line 3, of the printed bill, delete everything after "~~10-43-10.2~~.".

On page 5, delete lines 4 to 7, inclusive, and insert:

" Section 4. That chapter 10-43 be amended by adding thereto a NEW SECTION to read as follows:

A deduction may be made for a carryforward of a net operating loss or capital loss. The deduction is limited to the seven tax years immediately following the tax year of the loss. Net income may not be less than zero prior to making the adjustments provided for in §§ 10-43-10.2 and 10-43-10.3 because of a deduction taken for losses not incurred during the tax year for which the return is being filed.

The provisions of this section only apply to net operating losses or capital losses incurred on or after January 1, 2015.".

Moved by:    Gosch
Second by:    Wink
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1200 AS AMENDED

Moved by:    Gosch
Second by:    Wink
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Conzet, Gibson, Gosch, Hunhoff (Bernie), Killer, Novstrup (David), Parsley, Verchio, Westra, Wink, Cronin, Lust

Excused:    Munsterman

    HB 1136: limit the authority of delegates to a limited Article V convention to vote for unauthorized amendments contrary to legislative instructions and to provide a civil fine for the violation thereof.

Presented by:    Representative Manny Steele
Proponents:    William Fruth, Balanced Budget Task Force.
Opponents:    Michael Boyle, self, Avon, SD
        Michael Boyle, self, Parkston, SD

        Rita Houglum, SD Eagle Forum
        Cindy Flakoll, Concerned Women of America, Legislative Action Committee
        Eldon Stahl, Self, Mitchell

MOTION:    DO PASS HB 1136

Moved by:    Conzet
Second by:    Gosch
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Conzet, Gibson, Gosch, Hunhoff (Bernie), Killer, Novstrup (David), Parsley, Verchio, Westra, Wink, Cronin, Lust

Excused:    Munsterman

    HJR 1004: Making formal application to Congress to call a limited constitutional convention for the sole purpose of proposing a federal balanced budget amendment.

Presented by:    Representative Hal Wick (Handout: 2)
Proponents:    William Fruth, Balanced Budget Task Force.
Opponents:    Michael Boyle, self, Avon, SD
        Michael Boyle, self, Parkston, SD
        Ken Santema, Self, Aberdeen
        Rita Houglum, SD Eagle Forum
        Eldon Stahl, Self, Mitchell
        Cindy Flakoll, Concerned Women of America, Legislative Action Committee

MOTION: AMEND HJR 1004

On page 1 of the printed resolution, delete line 13.

On page 2, delete lines 1 to 7, inclusive, and insert:
"

WHEREAS, this application is to be considered as covering the same subject matter as the presently outstanding balanced budget applications from other states, including, but not limited to,".

On page 2, line 21, delete "for the purpose of" and insert "limited to".

On page 2, line 22, delete everything after "Constitution" .

On page 2, delete lines 23 and 24, and insert:

"requiring that in the absence of a national emergency, the total of all federal appropriations made by Congress for any fiscal year may not exceed the total of all estimated federal revenues for that fiscal year, together with any related and appropriate fiscal restraints; and".

Moved by:    Gosch
Second by:    Gibson
Action:    Prevailed by voice vote.

MOTION:    DO PASS HJR 1004 AS AMENDED

Moved by:    Gosch
Second by:    Verchio
Action:    Prevailed by roll call vote. (7-4-2-0)

Voting Yes:    Conzet, Gibson, Gosch, Killer, Westra, Cronin, Lust

Voting No:    Novstrup (David), Parsley, Verchio, Wink

Excused:    Hunhoff (Bernie), Munsterman

MOTION:    AMEND TITLE OF HJR 1004

On page 1, line 1, of the printed resolution, delete everything after "call".

On page 1, line 2, delete everything before "for" and insert "an Article V convention of the states".

Moved by:    Gosch
Second by:    Gibson
Action:    Prevailed by voice vote.

    HJR 1005: to apply for a Convention of the States under Article V of the Constitution of the United States.

Presented by:    Representative Isaac Latterell
Proponents:    Michael Farris. Self, Telephone testimoney

Opponents:    Michael Boyle, self, Parkston, SD
        Michael Boyle, self, Avon, SD
        Eldon Stahl, Self, Mitchell

        THE CHAIR DEFERRED HJR 1005

        THE CHAIR DEFERRED HB 1188

MOTION:    ADJOURN

Moved by:    Gosch
Second by:    Gibson
Action:    Prevailed by voice vote.

Joshua Klumb

____________________________

Committee Secretary

David Lust, Chair

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