89
th Legislative Session _ 2014
Committee: Senate State Affairs
Wednesday, February 19, 2014
P - Present
E - Excused
A - Absent
Roll Call
P Rhoden, Chair
P Rave, Vice-Chair
P Brown
P Holien
P Lederman
P Maher
P Tieszen
P Frerichs
P Lucas
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Senator Larry Rhoden, Chair.
MOTION: TO APPROVE THE MINUTES OF WEDNESDAY, FEBRUARY 12, 2014
Moved by: Rave
Second by: Brown
Action: Prevailed by voice vote.
SB 99: affect insurance.
Presented by: Harry Christianson, Ethanol Producers of SD
Proponents: Curt Everson, SD Bankers Association
MOTION: AMEND SB 99
99oa
On page 1 of the printed bill, delete line 3, and insert:
"
Section 1. That § 58-18-88 be amended to read as follows:
58-18-88. A self-funded multiple employer trust, as defined in section 3 of the federal Employee
Retirement Income Security Act of 1974, 29 U.S.C. § 1002, paragraph 40, may be authorized by the
director if the multiple employer trust meets all of the following conditions:
(1) The multiple employer trust is administered by an authorized insurer or a licensed third-party administrator;
(2) The multiple employer trust meets all of the requirements of § 58-18B-59;
(3) The multiple employer trust is established by a homogenous trade, industry, or
professional association of employers that has a constitution or bylaws, is organized under
the laws of South Dakota and has been maintained in good faith for purposes other than
providing insurance for at least ten continuous years;
(4) The association sponsoring the multiple employer trust is engaged in substantial activity
for its members other than sponsorship of an employer welfare benefit plan;
(5) The association sponsoring the multiple employer trust is a nonprofit entity organized
under applicable South Dakota law;
(6) The multiple employer trust, upon authorization by the director, participates in the South
Dakota Life and Health Insurance Guaranty Association pursuant to chapter 58-29C and
is a member pursuant to subdivision 58-29C-48(12); and
(7) The multiple employer trust:
(a) Meets the capital and surplus requirements of § 58-6-23;
(b) Meets the risk based capital requirements of § 58-4-48;
(c) Is subject to the hazardous financial condition requirements of §§ 58-4-39 to 58-4-42, inclusive;
(d) Invests its assets pursuant to the requirements of chapters 58-26 and 58-27;
(e) Is subject to chapter 58-3 on the same basis as insurers; and
(f) Is subject to the insurers supervision, rehabilitation, and liquidation provisions of
chapter 58-29B.
The director may waive the requirement of subdivision (5) of this section if the director determines
that the waiver is in the public interest. The director shall promulgate rules, pursuant to § 58-18-89,
to set forth the requirements for any waiver.
Section 2. That § 58-18-89 be amended to read as follows:
58-18-89. The director shall promulgate rules, pursuant to chapter 1-26, pertaining to multiple
employer trusts in the following areas:
(1) Consumer protection issues including minimum coverage standards for health policies;
claims processing and payment practices; resolution of consumer complaints; compliance
with federal HIPAA standards; plan termination processes and managed care protections;
financial and market conduct record keeping and reporting; and unfair trade practices;and
(2) Financial and plan solvency issues including investment capital requirements; surplus and
deposit requirements; claims reserves, stop loss coverage, and standards for entry and exit
of plan members including a nonrefundable minimum deposit of not less than two
thousand five hundred dollars plus two percent of first year contributions on an annual
basis; and production of financial statements, audited financial statements, and actuarial
opinions; and
(3) Setting forth the public interest requirements necessary to obtain a waiver of subdivision
58-18-88 (5). ".
Moved by: Rave
Second by: Brown
Action: Prevailed by voice vote.
MOTION: DO PASS SB 99 AS AMENDED
Moved by: Brown
Second by: Rave
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas
MOTION: AMEND TITLE OF SB 99
99ota
On page 1, line 1, of the printed bill, delete "affect insurance" and insert "revise certain
provisions regarding self-funded multiple employer trusts".
Moved by: Rave
Second by: Lederman
Action: Prevailed by voice vote.
MOTION: PLACE SB 99 ON CONSENT CALENDAR
Moved by: Brown
Second by: Rave
Action: Failed by voice vote.
SB 1: provide for the selection of the chair and vice chair of the Executive Board of the
Legislative Research Council, to provide for the year-round governance of the Legislative
Research Council by the Executive Board, to provide for the term of each constituted
Executive Board, and to provide for continuity of board membership.
Presented by: Senator Ryan Maher (Handouts: #1, written comments from Peterson)
MOTION: DO PASS SB 1
Moved by: Maher
Second by: Lederman
Action: Prevailed by roll call vote. (8-1-0-0)
Voting Yes: Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs
Voting No: Lucas
SB 10: revise certain provisions related to the annual budget report submission.
Presented by: Senator Corey Brown
Proponents: Joy Smolnisky, SD Budget and Policy Institute
MOTION: TO TABLE SB 10
Moved by: Rave
Second by: Maher
Action: Prevailed by roll call vote. (8-1-0-0)
Voting Yes: Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs
Voting No: Lucas
SB 176: revise the fund for which the sales and use tax revenue from certain remote sellers
and internet access services is deposited and to repeal the tax relief fund.
Presented by: Senator Deb Peters
MOTION: AMEND SB 176
176fb
On page 1, line 7, of the printed bill, delete "tax relief building South Dakota" and insert "tax
relief".
On page 1, line 8, delete "§ 10-45C-14 § 1-16G-47" and insert "§ 10-45C-14".
On page 1, delete lines 14 and 15.
On page 2, delete line 1.
On page 2, line 2, delete "March 1" and insert "March 31".
On page 2, delete lines 3 to 10, inclusive, and insert:
" Section 3. That § 10-45C-14 be amended to read as follows:
10-45C-14. There is hereby created in the state treasury the tax relief fund. The revenue collected
pursuant to § 10-45C-15 shall be deposited in the tax relief fund for the purpose of reducing the rate
of taxation or reducing property taxes. The fund shall be invested as provided by law, and the interest
earned shall be credited to the fund.
The Legislature may not appropriate any money from the tax
relief fund until the second fiscal year after Congress approves legislation giving states the authority
to require retailers to collect South Dakota's sales and use tax. ".
Moved by: Brown
Second by: Rave
Action: Prevailed by voice vote.
MOTION: DO PASS SB 176 AS AMENDED
Moved by: Maher
Second by: Rave
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas
MOTION: AMEND TITLE OF SB 176
176ftb
On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "revise certain
provisions concerning the tax relief fund.".
On page 1, delete lines 2 and 3.
Moved by: Rave
Second by: Brown
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: Dr. Jack Warner, Exec Dir, Bd. Of Regents
Mike Headley, Science and Technology Authority.
MOTION: DO PASS HB 1101
Moved by: Brown
Second by: Rave
Action: Prevailed by roll call vote. (9-0-0-0)
Voting Yes: Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas
MOTION: PLACE HB 1101 ON CONSENT CALENDAR
Moved by: Brown
Second by: Rave
Action: Prevailed by voice vote.
MOTION: ADJOURN
Moved by: Brown
Second by: Rave
Action: Prevailed by voice vote.
Jill Wellhouse
____________________________
Committee Secretary
Larry Rhoden, Chair
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