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 FRIDAY, FEBRUARY 21, 2014

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

    SB 108: accommodate legislation on medical services.

Presented by:    Senator Blake Curd
Proponents:    Dean Krogman, SD State Medical Association
Opponents:    David Hewett, SD Association of Healthcare Organizations
        Darla Pollman Rogers, Wellmark Blue Cross Blue Shield of SD
        Deb Fischer Clemens, Avera Health

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MOTION:    ON THE PRINTED BILL, DELETE THE PREVIOUSLY ADOPTED AMENDMENT (108ja), THUS RESTORING THE BILL TO THE PRINTED VERSION.

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

MOTION:    DO PASS SB 108

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

    SB 110: evaluate the health insurance contributions for state employees.

Presented by:    Senator Mark Kirkeby (Handouts: #1, insurance charges for state employees)
Opponents:    Colin Keeler, Bureau of Finance and Management
        Dusty Johnson, Office of the Governor
        Dean Krogman, SD Board of Regents

MOTION:    AMEND SB 110

110fa

    On the printed bill, delete everything after the enacting clause and insert:
"
    Section 1. That § 3-6E-8 be amended to read as follows:

    3-6E-8. The State of South Dakota shall either make a monthly contribution to the system or otherwise provide for the amount necessary to make payment to the system for the full single rate monthly health insurance premium or contribution for each employee. Each employee shall pay a premium or make a contribution for the employee's health insurance that is equal to seven-tenths of a percent of the employee's salary. This amount shall be transmitted to the account of the state employees benefits plan in the Office of the State Treasurer. The state treasurer, after making a record of the receipts, shall credit the benefits plan with an amount equal to that remitted or otherwise provided. After the contribution has been assigned to the benefits plan, the Bureau of Human Resources shall disburse the contribution in accordance with the provisions of this chapter

and the rules promulgated pursuant to chapter 1-26 by the commissioner of the Bureau of Human Resources. "

Moved by:    Rave
Second by:    Lederman
Action:    Prevailed by roll call vote. (5-4-0-0)

Voting Yes:    Rhoden, Rave, Lederman, Maher, Frerichs

Voting No:    Brown, Holien, Tieszen, Lucas

MOTION:    DEFER SB 110 TO THE 41^ST LEGISLATIVE DAY

Moved by:    Holien
Second by:    Lucas
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION DO PASS SB 110 AS AMENDED

Moved by:    Lederman
Second by:    Maher
Action:    Prevailed by roll call vote. (5-4-0-0)

Voting Yes:    Rhoden, Rave, Lederman, Maher, Frerichs

Voting No:    Brown, Holien, Tieszen, Lucas

MOTION:    AMEND TITLE OF SB 110

110fta

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "require state employees to make certain payments or contributions for health insurance.".

    On page 1, delete line 2.

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

    SB 181: prohibit the sale of tobacco products, alternative nicotine products, and vapor products to minors, and to provide a penalty therefor.

Presented by:    Senator Dan Lederman
Proponents:    Doneen Hollingsworth, Department of Health
        Shawn Lyons, SD Retailers Association
        Megan Myers, American Cancer Society
        Dean Krogman, SD State Medical Association
        Justin Bell, SD State Medical Association
        Matt Krogman, SD Voices for Children
        Jennifer Stalley, SD Nurses Association
        Charlie McGuigan, Office of Attorney General

MOTION:    AMEND SB 181

181ob

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

"    Section 1. That chapter 34-46 be amended by adding thereto a NEW SECTION to read as follows:

    For the purposes of §§ 34-46-2 to 34-46-6, inclusive, and this Act, the term, tobacco product, includes vapor product. The term, vapor product, means any noncombustible product containing nicotine that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from nicotine in a solution or other form. The term, vapor product, includes any electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. The term, vapor product, does not include any product approved by the United States Food and Drug Administration for sale as tobacco cessation products and marketed and sold solely for that purpose.

    Section 2.That chapter 34-46 be amended by adding thereto a NEW SECTION to read as follows:

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    No person may sell a vapor product other than in an unopened package originating with the manufacturer and depicting the warning labels required by federal law, or sell a vapor product through self-service display other than a display that is:

            (1)    A vending machine permitted under subdivision 34-46-2(5); or

            (2)    Located in a tobacco specialty store.

    A violation of this section is a Class 2 misdemeanor. A person is not liable for more than one violation of this section on a single day."

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

MOTION:    DO PASS SB 181 AS AMENDED

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

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

Voting No:    Maher

MOTION:    AMEND TITLE OF SB 181

181otb

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "define vapor products as tobacco products for the purpose of regulating the use of the products by minors and to place certain restrictions on the sale of vapor products.".

    On page 1, delete line 2.

Moved by:    Brown
Second by:    Rave

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Action:    Prevailed by voice vote.

    HB 1054: establish consumer protection standards regarding certain insurance claim practices and to provide for certain penalties.

Presented by:    Merle Scheiber, Department of Labor and Regulation
Proponents:    Larry Deiter, Department of Labor and Regulation
        Brian Bowker, NWGF Mutual Insurance Company
        Randy Moses, Avera Health Plans
        Darla Pollman Rogers, Wellmark Blue Cross Blue Shield of SD; NAIFA-SD; and          America's Health Insurance Plans
        Erik Nelson AARP South Dakota
        Dennis Duncan, Allstate Insurance Company; Dakotacare; and SD Association of Mutual Insurance Companies
        Mike Shaw, Property Casualty Insurance Association of America
        Justin Smith, American Council of Life Insurance
Others:    Joshua Andersen, Department of Labor and Regulation

MOTION:    AMEND HB 1054

1054jk

    On page 1, line 13, of the House engrossed bill, after "plans" insert ". This term does not include any insurance producer licensed pursuant to chapter 58-30, unless an insurance producer is directly involved in the adjudication of claims".

    On page 3, line 7, delete "has" and insert "coverage, and causation of claims have".

    On page 4, line 15, delete "director may, at the director's discretion," and insert "secretary of Labor and Regulation may".

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

MOTION:    DO PASS HB 1054 AS AMENDED

Moved by:    Rave
Second by:    Lederman

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Action:    Prevailed by roll call vote. (8-1-0-0)

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

Voting No:    Maher

    HB 1050: revise certain enforcement actions by the insurance director.

Presented by:    Joshua Andersen, Department of Labor and Regulation
Proponents:    Randy Moses, Avera Health Plans
        Darla Pollman Rogers, Wellmark Blue Cross Blue Shield of SD and SD Association of Healthcare Organizations

MOTION:    DO PASS HB 1050

Moved by:    Brown
Second by:    Lederman
Action:    Prevailed by roll call vote. (9-0-0-0)

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

MOTION:    PLACE HB 1050 ON CONSENT CALENDAR

Moved by:    Lederman
Action:    Was not acted on.

    HB 1051: revise certain provisions regarding the regulation of captive insurance companies.

Presented by:    Mallori Barnett, Department of Labor and Regulation


MOTION:    DO PASS HB 1051

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

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MOTION:    PLACE HB 1051 ON CONSENT CALENDAR

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

    HB 1099: revise the membership of the State Investment Council.

Presented by:    Senator Corey Brown
Proponents:    Rob Wylie, SD Retirement System
        Steve Kohler, Bureau of Finance & Management

MOTION:    DO PASS HB 1099

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

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

Voting No:    Maher

MOTION:    ADJOURN

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

Jill Wellhouse

Committee Secretary

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