89^th Legislative Session _ 2014

Committee: Senate State Affairs

Monday, March 10, 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, MARCH 5, 2014

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

Dustin Christopherson, S.D. Building Authority, and Dave Hewitt, SD Healthcare Organization spoke in support of the appointment of James Breckenridge, Sioux Falls, S.D. to the S.D. Building Authority.

MOTION: SENATE ADVISE AND CONSENT TO THE APPOINTMENT OF JAMES J. BRECKENRIDGE OF MINNEHAHA COUNTY, SIOUX FALLS, SOUTH DAKOTA, TO THE SOUTH DAKOTA BUILDING AUTHORITY

Moved by:    Maher
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:    PLACE THE APPOINTMENT OF JAMES J. BRECKENRIDGE ON THE CONSENT CALENDAR

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

    HB 1236: establish the school innovation and emergency fund.

Presented by:    Senator Timothy Rave

MOTION:    TO TABLE HB 1236

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

    HB 1194: establish certain requirements relating to the crossings of railroad rights-of-way by utilities.

Proponents:    Margo Northrup, SD Association of Rural Water Systems
        Darla Pollman Rogers, SD Rural Electric Association
        Greg Dean, SD Telecommunications Association
        Jeff Carmon, Century Link, Sioux Falls
        Brett Koenecke, SD Electric Utility Companies
        Drew Duncan, Heartland Consumer Power District
Opponents:    Tim Dougherty, BNSF Railroad, Sioux Falls, SD

MOTION: SUBSTITUTE MOTION AMEND HB 1194

On page 1, line 4, of the House Transportation Committee engrossed bill, delete "line" and insert "facility".

On page 1, line 6, delete everything after "including" .

On page 1, line 7, delete everything before "." and insert "a drawing showing the location of the proposed crossing and the railroad's property, tracks, and wires that the utility will cross".

On page 1, line 9, after "." insert "The application shall be accompanied by the crossing fee as set forth in section 3 of this Act, and a certificate of insurance as required by section 4 of this Act.".

On page 1, line 10, delete "utility has submitted" and insert "receipt by the railroad of".

On page 1, delete lines 11 to 14, inclusive, and insert "application, the fee, and certificate of insurance, the utility may commence the construction of the crossing, unless".

On page 2, line 1, delete everything before "that" and insert "the railroad notifies the utility in writing".

On page 2, line 2, delete "an objection".

On page 2, line 7, delete "roads of the state" and insert "right-of-way".

On page 2, after line 11, insert: "The utility shall also reimburse the railroad for any reasonable flagging expense associated with a crossing in addition to the standard crossing fee. No crossing fee is required if the crossing is located within a public right-of-way.

Section 4. The certificate of insurance or coverage submitted by a municipality shall include commercial general liability insurance or equivalent form with a limit of not less than one million dollars for each occurrence and an aggregate of not less than two million dollars. The certificate of insurance submitted by any other utility other than a gas or hazardous materials pipeline utility shall include commercial general liability insurance with a combined single limit of a minimum of two million dollars for each occurrence and an aggregate limit of at least four million dollars. The certificate of insurance submitted by a gas or hazardous materials pipeline utility shall include commercial general liability insurance with a combined single limit of a minimum of five million dollars for each occurrence and an aggregate limit of at least ten million dollars".

On page 2, line 22, delete "the" and insert "its".

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

" Section 6. If a railroad imposes additional requirements upon a utility for crossing its lines, the utility may object to one or more of the requirements. In such event, the utility shall provide notice of the objection and the specific basis of the objection to the railroad by certified mail, return receipt requested. If the parties are unable to resolve the objection, either party may petition the Public Utilities Commission for resolution or modification of the additional requirements within sixty days from receipt of the objection. Before filing a petition, the parties shall confer in good faith in an attempt to resolve the objection. If a petition is filed, the Public Utilities Commission, within one hundred twenty days of filing the petition, shall determine, after notice and opportunity for hearing, whether special circumstances exist that necessitate additional requirements for the placement of the crossing. The order may be appealed pursuant to chapter 1-26. The Public Utilities Commission shall assess its costs associated with a petition equitably against the parties.".

On page 3, line 12, delete "a railroad" and insert "any association or corporation, or other entity, engaged in operating a common carrier by rail or".

On page 3, line 17, delete everything after "Utility," and insert "electric utility, public utility, gas utility, municipal utility, municipal power agency, joint action agency, consumers power district, pipeline company, telecommunications company, and rural water system;

(4) "Crossing," the construction, operation, repair, or maintenance of a facility, over, under, or across a railroad right-of-way by a utility. The term does not include longitudinal occupancy of railroad right-of-way;

(5) "Facility," any item of personal property placed over, across, or underground for use in connection with the storage or conveyance of water; sewage; electronic, telephone, or telegraphic communications; fiber optics; cablevision; electric energy; oil; gas; hazardous liquids; or other substances including pipes, sewers, conduits, cables, valves, lines, wires, manholes, or attachments."

On page 3, delete lines 18 and 19.

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

MOTION:    DO PASS HB 1194 AS AMENDED

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

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

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

Presented by:    Senator Corey Brown

MOTION:    DO PASS HB 1085

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

    HB 1145: accommodate legislation on medical services.

Presented by:    Senator Corey Brown

MOTION:    DO PASS HB 1145

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

    HB 1203: improve the financial practices of the State of South Dakota.

Presented by:    Matt Michels, Lt. Governor (Handouts: #1, Standard & Poor's Ratings Services)
        Jason Dilges, Bureau of Finance and Management

MOTION: AMEND HB 1203

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

" Section 1. That chapter 4-8 be amended by adding thereto a NEW SECTION to read as follows:

The Bureau of Finance and Management and the Legislative Research Council shall prepare and submit, no later than the thirty-eighth legislative day of each legislative session, independent projections that conform with the provisions of subdivisions 4-7-10(2) and (5) to the Governor or the Governor's designee and the Joint Committee on Appropriations.

If either of the estimates provided in this section project a budget shortfall in excess of two and one-half percent of the general fund appropriated budget in the current or next fiscal year, the Bureau of Finance and Management and the Legislative Research Council shall propose measures to the Governor and the Appropriations Committee of the Legislature for eliminating the shortfall.

Section 2. That chapter 4-8A be amended by adding thereto a NEW SECTION to read as follows:

The Bureau of Finance and Management and the Legislative Research Council shall prepare and submit, no later than July thirtieth of each year, independent projections that conform with the provisions of subdivisions 4-7-10(2) and (5) to the Governor or the Governor's designee and the committee created by this chapter. Notwithstanding the provisions of subdivisions 4-7-10(2) and (5), the projections shall contain information of actual revenue for each of the two fiscal years last concluded and the estimated revenue of the current fiscal year.

If either of the estimates provided in this section project a budget shortfall in excess of two and one-half percent of the general fund appropriated budget in the current fiscal year, the Bureau of Finance and Management and the Legislative Research Council shall propose measures to the Governor and the special committee created in chapter 4-8A for eliminating the shortfall. If either of the estimates provided in this section project a budget shortfall in the current or next fiscal year of five percent or greater of the general fund appropriated budget, the Governor shall propose measures to eliminate the shortfall consistent with S.D. Const., Art. 12, § 7."

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

MOTION:    DO PASS HB 1203 AS AMENDED

Moved by:    Rave
Second by:    Lederman
Action:    Prevailed by roll call vote. (7-1-1-0)

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

Voting No:    Tieszen

Excused:    Brown

MOTION:    ADJOURN

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

Jill Wellhouse

____________________________

Committee Secretary

Larry Rhoden, Chair

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