89th Legislative Session _ 2014

Committee: House State Affairs
Wednesday, February 19, 2014

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Conzet
P    Gibson
P    Gosch
P    Hunhoff (Bernie)
P    Killer
P    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 Cronin.

MOTION:    TO APPROVE THE MINUTES OF WEDNESDAY FEBRUARY 19TH, 2014 7:45 AM

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

    HB 1085: revise certain property tax levies for the general fund of school districts.

Presented by:    Representative David Lust

MOTION:    DO PASS HB 1085


Moved by:    Verchio
Second by:    Novstrup (David)
Action:    Prevailed by roll call vote. (11-0-2-0)

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

Excused:    Gosch, Hunhoff (Bernie)

    HB 1210: expand Medicaid eligibility.

Presented by:    Representative Scott Parsley
Proponents:    Kim Jones, Self, Brookings
        Erik Nelson AARP South Dakota
        Dean Krogman, SD State Medical Association
        Dave Hewett, SD Association of Healthcare Organizations (Handout: 1)
        Amber Heubner, Self, Big Stone City - via telephone
        Bob Sutton, Avera Health
        Bernice Delorme, self, Pine Ridge
        Scott Zieske, Regional Health
        Jennifer Stalley, Community Healthcare Association of the Dakotas
        Lorin Pankratz, Sanford Health
        Brittany Novotny, SD Nurses Association
        Matt Krogman, American Cancer Society
Opponents:    Kim Malsam-Rysdon, Office of the Governor
        Alex Hanson, Bureau of Finance and Management

MOTION:    DO PASS HB 1210

Moved by:    Hunhoff (Bernie)
Second by:    Gibson
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DEFER HB 1210 TO THE 41ST LEGISLATIVE DAY

Moved by:    Verchio
Second by:    Conzet
Action:    Prevailed by roll call vote. (8-5-0-0)

Voting Yes:    Conzet, Gosch, Novstrup (David), Verchio, Westra, Wink, Cronin, Lust

Voting No:    Gibson, Hunhoff (Bernie), Killer, Munsterman, Parsley


    HB 1216: compensate school districts for funding shortfalls by increasing the per student allocation in the state aid to general education formula over the next three years.

Presented by:    Representative Julie Bartling (Handout: 2)
Proponents:    Rob Monson, School Administrators of SD
        Wade Pogany, Associated School Boards of SD
        Sandra Waltman, SD Education Association
        Mitch Richter, SD United Schools Association
        Dianna Miller, Large School Group
        Joy Smolnisky, SD Budget and Policy Institute
Opponents:    Jim Terwilliger, Bureau of Finance and Management

MOTION:    AMEND HB 1216

1216ma

    On the printed bill, delete everything after the enacting clause and insert:

"    Section 1. That subdivision (3) of § 13-13-10.1 be amended to read as follows:

            (3)    "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, except that it may never be less than two percent;

    Section 2. That subdivision (4) of § 13-13-10.1 be amended to read as follows:

            (4)    "Per student allocation," for school fiscal year 2012 is $4,389.95, for school fiscal year 2016 is $4,996.03, for school fiscal year 2017 is $5,229.55, for school fiscal year 2018 is $5,465.01, and for school fiscal year 2019 is $5,702.45. Each school fiscal year thereafter, the per student allocation is the previous fiscal year's per student allocation increased by the index factor;

    Section 3. That § 13-16-6 be amended to read as follows:

    13-16-6. The capital outlay fund of the school district is a fund provided by law to meet expenditures which result in the acquisition or lease of or additions to real property, plant, or equipment. Such an expenditure shall be for land, existing facilities, improvement of grounds, construction of facilities, additions to facilities, remodeling of facilities, or for the purchase or lease of equipment. It may also be used for installment or lease-purchase payments for the purchase of real property, plant, or equipment, which have a contracted terminal date not exceeding twenty years

from the date of the installment contract or lease-purchase and for the payment of the principal of and interest on capital outlay certificates issued pursuant to § 13-16-6.2.

    Any purchase of one thousand dollars or less may be paid out of the general fund. The total accumulated unpaid principal balances of such installment contracts and lease-purchase and the outstanding principal amounts of such capital outlay certificates may not exceed three percent of the taxable valuation. The school district shall provide a sufficient levy each year under the provisions of § 13-16-7 to meet the annual installment contract, lease-purchase, and capital outlay certificate payments, including interest.

    A school district which contracts its student transportation may expend from the capital outlay fund an amount not to exceed fifteen percent of the contract amount. In addition, a school district which reimburses for mileage instead of providing transportation pursuant to § 13-30-3, may use the capital outlay fund to pay for fifteen percent of its mileage reimbursement costs.

    The capital outlay fund may be used to purchase textbooks and instructional software.
    The capital outlay fund may be used to purchase warranties on capital assets if the warranties do not include supplies.

    During the period of time beginning on July 1, 2009, and ending on June 30, 2018 2017, any school district may make payments from its capital outlay fund for the purchase of property insurance and casualty insurance, for payments for energy costs and the cost of utilities, and for motor fuel or for any portion of a contract providing transportation to students or for any mileage reimbursements. However, the total amount that a school district expends from its capital outlay fund for these expenses may not exceed forty-five percent of the total tax revenues deposited in that fund during the current school fiscal year, and for any school district with a current tax levy for the capital outlay fund that is greater than its tax levy for the capital outlay fund in school fiscal year 2008, the total amount expended from the capital outlay fund for these expenses may not exceed forty-five percent of the total tax revenues that would have been deposited in that fund during the current school fiscal year if the tax levy for the capital outlay fund had not been increased since 2008. "


Moved by:    Hunhoff (Bernie)
Second by:    Killer
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1216 AS AMENDED

Moved by:    Hunhoff (Bernie)
Second by:    Gibson
Action:    Was not acted on.
MOTION:    SUBSTITUTE MOTION DEFER HB 1216 TO THE 41ST LEGISLATIVE DAY

Moved by:    Novstrup (David)
Second by:    Wink
Action:    Prevailed by roll call vote. (8-5-0-0)

Voting Yes:    Conzet, Gosch, Munsterman, Novstrup (David), Westra, Wink, Cronin, Lust

Voting No:    Gibson, Hunhoff (Bernie), Killer, Parsley, Verchio

    HB 1247: revise certain provisions for the economic development partnership fund.

MOTION:    TO TABLE HB 1247

Moved by:    Hunhoff (Bernie)
Second by:    Gibson
Action:    Prevailed by voice vote.

    HJR 1007: To refer to the voters the question of whether the state should expand Medicaid pursuant to the Affordable Care Act.

Presented by:    Representative Bernie Hunhoff

MOTION:    DO PASS HJR 1007

Moved by:    Gibson
Second by:    Parsley
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DEFER HJR 1007 TO THE 41ST LEGISLATIVE DAY

Moved by:    Novstrup (David)
Second by:    Verchio
Action:    Prevailed by roll call vote. (9-4-0-0)

Voting Yes:    Conzet, Gosch, Munsterman, Novstrup (David), Verchio, Westra, Wink, Cronin, Lust

Voting No:    Gibson, Hunhoff (Bernie), Killer, Parsley

    HB 1251: protect the citizens, businesses, clergy, and other persons of South Dakota

regarding actions pertaining to views on sexual orientation or preference and to provide for their defense.

Presented by:    Representative Lance Russell
Proponents:    Dempsey Nathan Hollowey, Self, Freeman
        Travis Grassnid, Self, Menno
Opponents:    Tom Barnett, State Bar of SD
        Lawrence Novotny, Equality South Dakota (Handout: 3)
        Terri Carlson, Self, Sioux Falls

MOTION:    DEFER HB 1251 TO THE 41ST LEGISLATIVE DAY

Moved by:    Novstrup (David)
Second by:    Gibson
Action:    Prevailed by roll call vote. (12-0-1-0)

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

Excused:    Killer

MOTION:    ADJOURN

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

Joshua Klumb

____________________________

Committee Secretary
David Lust, Chair

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