89^th Legislative Session _ 2014

Committee: Senate State Affairs

                                            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 19, 2014

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


    SB 107: accommodate legislation on the state aid to education formula and to make an appropriation therefor.

Presented by:    Senator Timothy Rave

MOTION:    DO PASS SB 107

Moved by:    Rave
Second by:    Lederman

---

Action:    Prevailed by roll call vote. (7-0-2-0)

Voting Yes:    Rhoden, Rave, Holien, Lederman, Tieszen, Frerichs, Lucas

Excused:    Brown, Maher

    SB 108: accommodate legislation on medical services.

Presented by:    Senator Blake Curd
Opponents:    David Hewett, SD Association of Healthcare Organizations

MOTION:    AMEND SB 108

108ja

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

"    Section 1. No third party payor, excluding Medicare, who makes a payment to a provider on the behalf of a covered beneficiary in South Dakota may deny payment to a provider based solely on a perceived or claimed inaccuracy in the assignment of an International Statistical Classification Disease-10 (ICD-10) diagnosis on a claim submitted by a provider on behalf of a covered beneficiary for a service covered under the beneficiary's health benefit plan.

    A provider and payor shall make all reasonable and necessary efforts to resolve disagreements regarding correct ICD-10 diagnosis codes in a timely and expedient fashion. However, in no event may this reconciliation take more than ninety days.

    If, at the end of the ninety day reconciliation period between a provider and a payor that concerns a disagreement that arises from a submitted ICD-10, no resolution or agreement has been reached, the payor may pursue its standard dispute resolution and claims process covered under an agreement between provider and payor.

    This Act does not apply to providers and payors not operating under a provider network agreement with each other on the date of the service for which the claim is submitted. A payor may continue its standard dispute resolution and claims process with providers who are not under any agreement or that are out of the payor's network.

    Section 2. This Act is repealed nine months after the implementation of the International Statistical Classification of Disease-10."

---

Moved by:    Rave
Second by:    Holien
Action:    Prevailed by voice vote.

Senator Rhoden, Chair, deferred further action on this bill until Monday, February 24, 2014.

    SB 109: accommodate legislation on education in South Dakota.

Presented by:    Senator Timothy Rave

MOTION:    TO TABLE SB 109

Moved by:    Maher
Second by:    Lederman
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Rhoden, Rave, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas

Excused:    Brown

    SB 157: make an appropriation to the building South Dakota fund and to declare an emergency.

Presented by:    Senator Timothy Rave
Proponents:    Julie Johnson, Absolutely Aberdeen

MOTION:    DO PASS SB 157

Moved by:    Holien
Second by:    Lederman
Action:    Prevailed by roll call vote. (8-0-1-0)

Voting Yes:    Rhoden, Rave, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas

Excused:    Brown

    SB 141: improve the work force development in South Dakota.

Presented by:    Senator Billie Sutton (Handouts: #1, future fund projections)

---

Proponents:    Representative Julie Bartling (Handouts: #2, SD teacher adequacy study)
Opponents:    Julie Johnson, Absolutely Aberdeen
        Pat Costello, Governors Office of Economic Development

MOTION:    AMEND SB 141

141mb

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

"    Section 1. 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

    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 and after refunds are made pursuant to the provisions of this title, fifty percent of the money derived from the remainder shall be deposited in the employer's investment in South Dakota's future special revenue fund as provided for in § 61-5-29.1; sixteen and six-tenths percent of the money derived from the remainder shall be deposited in the needs-based grant fund as provided for in § 13-55A-14; sixteen and six-tenths percent of the money derived from the remainder shall be deposited in the education enhancement trust fund created pursuant to S.D. Const., Art. XII, § 6, to allow the funds to be invested to fund the critical teaching needs scholarship program created in § 13-55-64; and sixteen and eight-tenths percent of the money derived from the remainder shall be deposited in the career and technical educator recruitment assistance program fund created in section 2 of this Act.

    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.

    Section 2. The career and technical educator recruitment assistance program fund is hereby established in the state treasury and shall consist of moneys from public and private sources including legislative appropriations, federal grants, and gifts. The fund shall be maintained separately and be administered by the Department of Education in order to provide funding for the career and technical education teacher recruitment assistance program as established pursuant to this Act. Expenditures from the fund shall be appropriated through the normal budget process. Unexpended funds and interest shall remain in the fund until appropriated by the Legislature.

    Section 3. The Department of Education shall establish a program to assist in recruiting and

developing career and technical education teachers.

    Section 4. A student is eligible to participate in the career and technical education teacher recruitment assistance program established pursuant to the provisions of this Act, if the student is enrolled, full-time or part-time, in an accredited postsecondary institution and has agreed to teach career and technical education at a South Dakota school district for a minimum period of three years.

    Section 5. A student who fulfills the requirements of the career and technical educator recruitment assistance program established pursuant to the provisions of this Act, is entitled to receive an incentive payment not to exceed ten thousand dollars.

    Section 6. The incentive payment shall be paid upon completion of the required three-year teaching obligation. The secretary of the Department of Education shall pay the required amount out of funds appropriated by the Legislature for such purpose.

    Section 7. No recruitment assistance agreement entered into pursuant to the provisions of this Act, is effective until it is filed with and approved by the secretary of education. The secretary may prescribe the format of the agreements and procedures for approval.

    Section 8. No person may participate in the program established pursuant to the provisions of this Act, if the person has previously participated in such program, or any other state or federal scholarship, loan repayment, or tuition reimbursement program which obligates the person to provide services to an educational program."

Moved by:    Frerichs
Second by:    Tieszen
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION AMEND SB 141

141aa

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

"    Section 1. There is hereby appropriated from the general fund the sum of one dollar ($1) to the need-based grant fund established pursuant to § 13-55A-14.

    Section 2. There is hereby appropriated from the general fund the sum of one dollar ($1), or so much thereof as may be necessary, to the education enhancement trust fund created pursuant to S.D. Const., Art. XII, § 6 to allow the funds to be invested to fund the critical teaching needs scholarship

program established pursuant to § 13-55-64.

    Section 3. The state treasurer shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval."

Moved by:    Rave
Second by:    Holien
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 141 AS AMENDED

Moved by:    Rave
Second by:    Brown
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 141

141ata

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "make an appropriation to fund certain scholarship programs and to declare an emergency.".

Moved by:    Rave
Second by:    Brown
Action:    Prevailed by voice vote.

    SB 158: revise certain funding provisions of the building South Dakota fund.

Presented by:    Senator Corey Brown (Handouts: #3, buckets)

---

MOTION:    AMEND SB 158

158aa

    On page 3, line 20, of the printed bill, delete "fifteen million dollars" and insert "one percent of the general fund appropriations in the general appropriations act for the previous fiscal year".

    On page 3, line 22, delete "fifteen million dollars" and insert "one percent of the general fund appropriations in the general appropriations act for the previous year".

    On page 4, after line 1, insert

"    Section 4. That chapter 4-7 be amended by adding thereto a NEW SECTION to read as follows:

    If the combined balance in the building South Dakota fund pursuant to section 3 of this Act is less than one half percent of the general fund appropriations in the general appropriations act for the previous fiscal year, the commissioner shall transfer an amount of money from the property tax reduction fund to the building South Dakota fund so that the total of the amount deposited pursuant to this section and section 3 of this Act does not exceed one half percent of the general fund appropriations in the general appropriations act for the previous fiscal year. However, if the collective cash balance of the budget reserve fund and the property tax reduction fund at the end of the prior fiscal year is less than ten percent of the general fund appropriations from the general appropriations act for the prior year, no transfer may be made to the building South Dakota fund pursuant to this section.".

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

MOTION:    DO PASS SB 158 AS AMENDED

Moved by:    Rave
Second by:    Maher
Action:    Prevailed by roll call vote. (9-0-0-0)

Voting Yes:    Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas

---

    SB 168: provide oversight and accountability to certain economic activities.

Presented by:    Senator Corey Brown


MOTION:    DO PASS SB 168

Moved by:    Maher
Second by:    Holien
Action:    Prevailed by roll call vote. (9-0-0-0)

Voting Yes:    Rhoden, Rave, Brown, Holien, Lederman, Maher, Tieszen, Frerichs, Lucas

MOTION:    ADJOURN

Moved by:    Brown
Second by:    Rave
Action:    Prevailed by voice vote.

Jill Wellhouse

Committee Secretary

---

../02211000.SST