House Commerce Minutes 2/22/2008 09:30 AM

2008 Legislative Session _ 2008

Committee: House Commerce

Friday, February 22, 2008

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
E    Ahlers
P    Boomgarden
P    Dreyer
E    Engels
P    Hunt
P    Juhnke
P    Noem
P    Novstrup (David)
P    Nygaard
P    Pederson (Gordon)
P    Street
P    Willadsen, Vice-Chair
P    Rounds, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Tim Rounds, Chair .

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 20, 2008

Moved by:    Juhnke
Second by:    Hunt
Action:    Prevailed by voice vote.

         SB 143: revise certain provisions regarding collection and administration of the 911 emergency surcharge and operation of 911 services.

Presented by:    Representative Bob Faehn
Proponents:    Tom Dravland, Secretary, Department of Public Safety Handouts 1,2,3, & 4)
        Bob Wilcox, SD Association of County Commissioners

        Yvonne Taylor, SD Municipal League
        Greg Dean, SD Telecommunications Association
        Stacy Sprinkle, Verizan Wireless
        Rae Ann Kelsh, Alltel
        Roger Tellinghuisen, Trac Fone (Handout #5)
        Shawn Lyons, SD Retailers Association
        David Owen, SD Chamber of Commerce & Industry
Opponents:    Dave Gerdes, Midcontinent Communications

MOTION:     AMEND SB 143

On page 1 of the Senate engrossed bill, delete lines 7 to 9, inclusive, and insert:

" service account:

(a) Which has a sufficient positive balance as of the last day of any month and is issued to a person who resides in a zip code, or purchases the service, within the state; or

(b) As estimated by dividing the total earned prepaid wireless telecommunications service revenue received by the service provider within the monthly reporting period by the industry's annually calculated average revenue per user as cited in the FCC's Annual Report and Analysis of Competitive Market Conditions With Respect to Commercial Mobile Services as required under 47 U.S.C. § 332(c)(1)(C); ".

Moved by:    Nygaard
Second by:    Noem
Action:    Prevailed by voice vote.

MOTION:     AMEND SB 143

On page 14, after line 20 of the Senate engrossed bill, insert:

"
Section 21. Notwithstanding any provision of chapter 34-45, no retailer purchasing prepaid wireless telecommunication services or devices for resale is required to collect or remit any 911

emergency surcharge.".

Moved by:    Hunt
Second by:    Boomgarden
Action:    Prevailed by voice vote.

MOTION:     AMEND SB 143

On the previously adopted amendment (143sd), after the last sentence in subsection (b), insert the following:

"

(c) Which is a retail sale by a prepaid wireless telecommunications service provider to a service user in the state; ".

On page 3, line 22 of the Senate engrossed bill, after " state " insert " provided, however, that with respect to an active prepaid wireless telecommunications service user account under subsection 34- 45-1(1)(c), the surcharge shall be two percent of the retail purchase price of such service ".

Moved by:    Hunt
Second by:    Noem
Action:    Prevailed by roll call vote. (7-6-0-0)

Voting Yes:    Dreyer, Engels, Hunt, Noem, Novstrup (David), Nygaard, Willadsen

Voting No:    Ahlers, Boomgarden, Juhnke, Pederson (Gordon), Street, Rounds

MOTION:     AMEND SB 143

On page 8, line 10, before " or " insert " prepaid wireless telecommunications service provider, ".

On page 8, line 14, before " or " insert " prepaid wireless telecommunications service provider, ".

Moved by: Hunt
Second by: Noem

Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 143 AS AMENDED

Moved by:    Ahlers
Second by:    Willadsen
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Ahlers, Boomgarden, Dreyer, Engels, Hunt, Juhnke, Noem, Novstrup (David), Nygaard, Pederson (Gordon), Street, Willadsen, Rounds

MOTION:     PLACE SB 143 ON CONSENT CALENDAR

Moved by:    Dreyer
Action:    Died for lack of a second.

GAVEL PASSED TO VICE CHAIR WILLADSEN.

         SB 123: provide for certain requirements for the sale and purchase of nonferrous metal property.

Presented by:    Representative Kim Vanneman
Proponents:    Ed Anderson, SD Rural Electric Association
        Senator Kenneth Albers
        Dave Gerdes, SD Electric Utility Companies
        Margo Northrup, South Dakota Rural Electric Association
        Greg Dean, SD Telecommunications Association
        David Nauman, SD Motor Vehicle Recyclers Association

MOTION:     AMEND SB 123

On page 2, line 21, of the Senate engrossed bill, delete "and declaration".

On page 2, line 23, delete "and declaration ".

Moved by:    Rounds
Second by:    Street
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 123 AS AMENDED

Moved by:    Dreyer
Second by:    Ahlers
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Ahlers, Boomgarden, Dreyer, Engels, Hunt, Juhnke, Noem, Novstrup (David), Nygaard, Pederson (Gordon), Street, Willadsen, Rounds

MOTION:     PLACE SB 123 ON CONSENT CALENDAR

Moved by:    Dreyer
Second by:    Street
Action:    Prevailed by voice vote.

GAVEL PASSED TO CHAIR ROUNDS.

         SB 161: create the South Dakota Boxing Commission and to provide for the supervision of boxing and kickboxing competitions and sparring exhibitions in the state.

Presented by:    Senator Ben Nesselhuf
Proponents:    Dick Gregerson, Sioux Falls Storm
        Jeffrey LeMair, Sioux Falls Storm
        Mike Kilmer, self, Piedmont

MOTION:     DO PASS SB 161

Moved by:    Pederson (Gordon)
Second by:    Dreyer
Action:    Prevailed by roll call vote. (12-1-0-0)

Voting Yes:    Ahlers, Boomgarden, Dreyer, Engels, Hunt, Juhnke, Noem, Novstrup (David), Nygaard, Pederson (Gordon), Street, Rounds

Voting No:    Willadsen

         SB 126: allow municipalities and counties to issue additional on-sale alcoholic beverage licenses and to compensate certain existing on-sale license holders.

Presented by:    Representative David Lust
Proponents:    Yvonne Taylor, SD Municipal League

        Dawn Aspaas, Redstone Development (Handout #6)
        Craig Lloyd, Lloyd Companies (Handout #7)
        Vic Alexander, self, Hill City, SD (Handout #8)
        David Wiest, Dept. Of Revenue and Regulation
        Sam Tidball, Mayor, City of Fort Pierre
        Dennis Eisnach, Mayor, City of Pierre
        Larry Zikmund, Associated General Contractors - Building Chapter
Opponents:    Tim Dougherty, Licensed Beverage Dealers of SD
        Bob Riter Jr., Music & Vending Association of SD
        Larry Mann, M. G. Oil Company

MOTION:     AMEND SB 126

On page 1, line 9, of the Senate State Affairs Committee engrossed bill, delete "pursuant to subdivision 35-4-2(4) or (6)" and insert "for full-service restaurants".

On page 1, line 10, delete "2" and insert "7".

On page 1, delete lines 11 to 13, inclusive, and insert:

" Section 2. Terms used in this Act mean:

(1) "Bar," any permanently installed counter within the restaurant area from which alcoholic beverages are regularly served to customers by a person who is tending bar or drawing or mixing alcoholic beverages;

(2) "Full-service restaurant," any restaurant at which a waiter or waitress delivers food and drink offered from a printed food menu to patrons at tables, booths, or the bar. Any restaurant that only serves fry orders or food and victuals such as sandwiches, hamburgers, or salads is not a full-service restaurant;

(3) "Restaurant," any area in a building maintained, advertised, and held out to the public as a place where individually priced meals are prepared and served primarily for consumption in such area and where not more than fifty percent of the gross revenue of the restaurant is derived from the sale of alcohol or alcoholic beverages. The restaurant shall have a dining room or rooms, a kitchen, and the number and kinds of employees necessary for the preparing, cooking, and serving of meals.

Section 3. An applicant for a full-service restaurant on-sale license shall provide sufficient documentation to the municipality to prove that the primary source of revenue from the operation of the restaurant will be derived from the sale of prepared food and nonalcoholic beverages and not

from the sale of alcoholic beverages. The supporting documentation concerning the primary source of revenue submitted pursuant to this section is confidential.

Section 4. When the municipality is renewing a full-service restaurant on-sale license, the municipality shall condition the license renewal upon receiving documentation that not more than fifty percent of gross sales from the preceding twelve months operation of the full-service restaurant is derived from the sale of alcohol or alcoholic beverages. The full-service restaurant on-sale licensee shall submit an annual report to the municipality on the sales for the full-service restaurant that includes an oath verifying the validity of the information provided in the report. The report and the supporting documentation submitted pursuant to this section are confidential. The report shall contain the annual gross sales of the licensee for the following two categories:

(1) Food and nonalcoholic beverage sales; and

(2) Alcoholic beverage sales.

Section 5. A full-service restaurant on-sale licensee may only serve alcoholic beverages for on-premise consumption in the bar and dining room area of the restaurant.

Section 6. A restaurant that has a full-service restaurant on-sale license may only be advertised or held out to the public as primarily a food eating establishment. No licensee that has a full-service restaurant on-sale license may allow smoking on the licensed premises.".

On page 2, delete lines 1 to 4, inclusive.

On page 2, line 8, delete "pursuant to subdivision 35-4-2(4) or (6)" and insert "to full-service restaurants".

On page 2, line 23, after "2008," insert "and who purchased the license or had the license transferred to such licensee at any time between January 1, 2003, and January 1, 2008,".

On page 3, line 1, after "paid" insert "for the on-sale license to the municipality or county that issued the license".

On page 3, line 9, before "on-sale" insert "full-service restaurant".

On page 3, line 9, delete "1" and insert "7".

On page 3, line 10, after "value." insert "However, such full-service restaurant on-sale license fee may not be less than the minimum on-sale license fee established pursuant to subdivision 35-4- 2(4) or (6).".

On page 3, line 11, delete "prior to" and insert "between January 1, 2003, and".

On page 3, line 13, after "2008," insert "who acquired the on-sale license within the last five years".

On page 3, line 15, delete "The" and insert "Each".

On page 3, line 15, after "county" insert "adopting an ordinance pursuant to section 1 of this Act".

On page 3, line 16, delete "4" and insert "9".

On page 3, line 17, before "on-sale" insert "full-service restaurant".

On page 3, line 20, delete "4" and insert "9".

On page 3, line 23, delete "4" and insert "9".

On page 3, line 23, after "Act." insert "Nothing in this Act precludes the sale of an on-sale license by a licensee not listed on the registry.".

On page 4, line 1, delete "6" and insert "10".

Moved by:    Willadsen
Second by:    Juhnke
Action:    Prevailed by voice vote.

MOTION:     AMEND SB 126

On the previously adopted amendment (126fh), in section 2, subdivision (3), delete "fifty" and insert "forty".

On the previously adopted amendment (126fh), in the first sentence of section 4, delete "fifty" and insert "forty".

Moved by:    Hunt
Second by:    Ahlers
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DO PASS SB 126 AS AMENDED

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

Voting Yes:    Ahlers, Boomgarden, Dreyer, Engels, Juhnke, Novstrup (David), Nygaard, Pederson (Gordon), Street, Willadsen, Rounds

Voting No:    Hunt, Noem

MOTION:     AMEND TITLE OF SB 126

On page 1, line 2, of the Senate State Affairs Committee engrossed bill, delete everything after "licenses" and insert ".".

Moved by:    Pederson (Gordon)
Second by:    Dreyer
Action:    Prevailed by voice vote.

MOTION:     ADJOURN

Moved by:    Pederson (Gordon)
Second by:    Street
Action:    Prevailed by voice vote.

Carolyn Jorgensen

____________________________

Committee Secretary

Tim Rounds, Chair

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