91st Legislative Session _ 2016

Committee: Joint Committee on Appropriations
Thursday, February 25, 2016

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Rep. Bordeaux
P    Rep. Ring
P    Rep. Jensen (Alex)
P    Rep. Partridge
P    Rep. Anderson
P    Rep. Hunhoff (Jean)
P    Rep. Romkema
P    Sen. Buhl O'Donnell
P    Sen. Parsley
P    Sen. Omdahl
P    Sen. Van Gerpen
P    Sen. Haverly
P    Sen. Heineman (Phyllis)
P    Sen. White
P    Rep. Dryden
P    Sen. Tidemann
P    Rep. Cronin, Co-Chair
P    Sen. Peters, Co-Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Co-Chair Deb Peters.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 24, 2016

Moved by:    Anderson
Second by:    Tidemann
Action:    Prevailed by voice vote.

    HB 1042: establish the trust company receivership and liquidation captive insurance

company fund and to make an appropriation therefor.

MOTION:    DO PASS HB 1042

Moved by:    Tidemann
Second by:    Partridge
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION AMEND HB 1042

1042fb

    On page 1, line 5, of the printed bill, delete "one dollar ($1)" and insert "two million two hundred twenty thousand dollars ($2,220,000)".

    On page 2, line 3, after "fund." insert "Unexpended money and any interest that may be credited to the fund shall remain in the fund.".


Moved by:    Tidemann
Second by:    Partridge
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1042 AS AMENDED

Moved by:    Tidemann
Second by:    Partridge
Action:    Prevailed by roll call vote. (16-1-1-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Hunhoff (Jean), Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

Voting No:    Anderson

Excused:    Romkema

    HB 1045: revise certain reversion provisions relating to the General Appropriations Act for fiscal year 2013.

MOTION:    DO PASS HB 1045

Moved by:    Cronin
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

    HB 1159: establish the nonbeneficiary student scholarship program for certain students attending tribally controlled colleges.

MOTION:    AMEND HB 1159

1159ca

    On page 1 of the printed bill, delete lines 14 and 15, and insert:

"
    Section 2. That chapter 13-55 be amended by adding a NEW SECTION to read:

    In order to be eligible for a scholarship pursuant to this Act, a nonbeneficiary student shall apply to a participating college on forms provided by the Board of Regents and meet the following requirements:

            (1)    Be a resident of South Dakota at the time of graduation from high school;

            (2)    Have a composite score of 24 or higher on the test administered by ACT, Incorporated or an equivalent score as determined by the Board of Regents on the Scholastic Assessment Test; and

            (3)    Meet the high school course requirements for graduation as provided in § 13-55-31.1.".

    On page 2, delete lines 1 to 3, inclusive.

    On page 2, delete lines 8 to 17, inclusive, and insert:

"    Section 4. There is hereby appropriated from the general fund the sum of one hundred thousand dollars ($100,000), or so much thereof as may be necessary, to the Board of Regents for the purpose

of providing scholarships pursuant to this Act.

    Section 5. The executive director of the Board of Regents shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 6. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.".



Moved by:    Bordeaux
Second by:    Buhl O'Donnell
Action:    Failed by voice vote.

MOTION:    TO TABLE HB 1159

Moved by:    White
Second by:    Dryden
Action:    Prevailed by roll call vote. (14-4-0-0)

Voting Yes:    Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

Voting No:    Bordeaux, Ring, Buhl O'Donnell, Parsley

    SB 43: increase the unemployment insurance penalty for failure to pay contributions or make reports.

MOTION:    TO TABLE SB 43

Moved by:    Cronin
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

    SB 47: reduce the unemployment contribution rates for certain employers and to provide for an unemployment insurance administrative fee.

MOTION:    AMEND SB 47

47fa

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

"
    Section 1. That § 61-5-25.3 be amended to read:
    61-5-25.3. The employer's reserve ratio for calendar year 2015 and thereafter is the result obtained by dividing the balance of credits existing in the employer's experience-rating account as of June thirtieth preceding the year for which the rate is to be computed by the total taxable payroll of the employer for the preceding three fiscal years. The employer's experience-rating account balance for the purpose of this section is the balance on July thirty-first of the year preceding the year for which rates are computed and is the difference between the contributions paid through July thirty-first and the benefits paid through the preceding June thirtieth.

Column "A"   Column "B"  
Contribution Rate   Reserve Ratio  
9.50%        Less than -7.00%  
9.00%       -7.00% and Less than -6.50%  
8.50%       -6.50% and Less than -6.00%      
8.00%       -6.00% and Less than -5.50%  
7.50%       -5.50% and Less than -5.00%  
7.00%       -5.00% and Less than -4.50%  
6.50%       -4.50% and Less than -4.00%  
6.00%       -4.00% and Less than -3.50%  
5.50%       -3.50% and Less than -3.00%  
5.00%       -3.00% and Less than -2.50%  
4.50%       -2.50% and Less than -2.00%  
4.00%       -2.00% and Less than -1.50%  
3.50%       -1.50% and Less than -1.00%  
3.00%       -1.00% and Less than -0.75%  
2.50%       -0.75% and Less than -0.50%  
2.00%       -0.50% and Less than -0.25%  
1.50%       -0.25% and Less than 0.00%  
1.00%       0.00% and Less than 0.50%  
0.75%       0.50% and Less than 0.75%  
0.60%       0.75% and Less than 1.00%  
0.40%       1.00% and Less than 1.25%  
0.30%       1.25% and Less than 1.50%  
0.20%       1.50% and Less than 1.75%  
0.10%       1.75% and Less than 2.25%  
0.00%       2.25% and Over  

    The contribution rates provided in this section apply to taxable wages paid on and after January 1, 2015.

    An employer who qualifies for experience rating per § 61-5-24 on the computation date for the year shall have the employer's contribution rate appearing in Column A reduced by two hundredths percent beginning January 1, 2017. The employer shall pay an administrative fee contribution of two hundredths percent beginning January 1, 2017, if the employer's contribution rate in Column A is greater than zero percent. Any administrative fee contribution collected pursuant to this section shall be paid into the employment security administration fund provided by § 61-3-24. The administrative fee contribution may not be credited to the experience rating account of the employer.

    Section 2. That § 61-5-37 be amended to read:

    61-5-37. The Department of Labor and Regulation shall credit to the experience-rating account of each employer all contributions paid by the employer or the employer's predecessor whose experience-rating the employer acquired. However, the increased contributions required pursuant to § 61-5-28 and the administrative fee contribution pursuant to § 61-5-25.3 may not be credited to the employers' experience-rating account. "



Moved by:    Peters
Second by:    Tidemann
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 47 AS AMENDED

Moved by:    Peters
Second by:    Anderson
Action:    Prevailed by roll call vote. (16-2-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

Voting No:    Partridge, Omdahl

    SB 96: revise the expense reimbursement for members of the Board of Pardons and Paroles.

MOTION:    AMEND SB 96

96da

    On page 1, line 5, of the printed bill, strike "compensation and" .

    On page 1, line 7, delete everything after "." and insert "Each member shall receive expense reimbursement at the amount fixed for the per diem allowance that is authorized by the United States Internal Revenue Service to be excluded from the gross income without itemization as of October first each year.".

    On page 1, delete line 8.


Moved by:    Tidemann
Second by:    Cronin
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 96 AS AMENDED

Moved by:    Tidemann
Second by:    Dryden
Action:    Prevailed by roll call vote. (18-0-0-0)
Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

MOTION:    AMEND TITLE OF SB 96

96dta

    On page 1, line 1, of the printed bill, after "Act to" delete "increase the pay" and insert "revise the expense reimbursement".


Moved by:    Tidemann
Second by:    Cronin
Action:    Prevailed by voice vote.

    SB 161: lower the state sales and use tax on certain food items and to increase the rate of taxation for the sales and use tax on certain goods and services.

MOTION:    DO PASS SB 161

Moved by:    Ring
Second by:    Buhl O'Donnell
Action:    Was not acted on.

        THE CHAIR DEFERRED SB 161

Bureau of Administration - FY17 Budget
Presented by Stephanie Gruba, LRC Fiscal Staff

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - ADMINISTRATIVE SERVICES BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 3.5 FTES, $683 IN GENERAL FUNDS, $491,644 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $492,327.        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (14-0-4-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Anderson, Hunhoff (Jean), Romkema, Parsley,

Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Peters

Excused:    Partridge, Buhl O'Donnell, Tidemann, Cronin

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - SALE LEASEBACK (BFM/BOA) BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $289,450 IN GENERAL FUNDS.                        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (14-0-4-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Anderson, Hunhoff (Jean), Romkema, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Peters

Excused:    Partridge, Buhl O'Donnell, Tidemann, Cronin

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - DIVISION OF CENTRAL SERVICES BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 135.5 FTES, $396,929 IN GENERAL FUNDS, $24,914,444 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $25,311,373.

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (14-0-4-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Anderson, Hunhoff (Jean), Romkema, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Peters

Excused:    Partridge, Buhl O'Donnell, Tidemann, Cronin

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - STATE ENGINEER BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 14.0 FTES, $1,287,771 IN OTHER FUND EXPENDITURE AUTHORITY.

Moved by:    Haverly
Second by:    Hunhoff (Jean)
Action:    Prevailed by roll call vote. (14-0-4-0)

Voting Yes:    Bordeaux, Ring, Anderson, Hunhoff (Jean), Romkema, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Peters

Excused:    Jensen (Alex), Partridge, Buhl O'Donnell, Cronin

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - STATEWIDE MAINTENANCE & REPAIR BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $17,771,043 IN GENERAL FUNDS, $500,000 IN FEDERAL FUND EXPENDITURE AUTHORITY, $3,089,246 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $21,360,289.        

Moved by:    Haverly
Second by:    Hunhoff (Jean)
Action:    Was not acted on.

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - OFFICE OF HEARING EXAMINERS BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 3.0 FTES AND $333,261 IN GENERAL FUNDS.        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (16-0-2-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Peters

Excused:    Partridge, Cronin

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - OBLIGATION RECOVERY CENTER BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $450,000 IN GENERAL FUNDS.                

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (16-0-2-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White,

Dryden, Tidemann, Peters

Excused:    Partridge, Cronin

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - CAPTIVE INSURANCE POOL BUDGET WHICH INCLUDES $1,836,000 IN OTHER FUND EXPENDITURE AUTHORITY.

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (17-0-1-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Peters

Excused:    Cronin

Bureau of Information and Telecommunications - FY17 Budget
Presented by Stephanie Gruba, LRC Fiscal Staff

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - DATA CENTER BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 64.0 FTES AND $9,643,290 IN OTHER FUND EXPENDITURE AUTHORITY.        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (17-0-1-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Peters

Excused:    Cronin

Department of Health - FY17 Budget
Presented by Jason Simmons, LRC Fiscal Staff

MOTION:    TO SET THE HEALTH - DIVISION OF ADMINISTRATION BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 32.0 FTES, $935,842 IN GENERAL FUNDS, $1,683,917 IN FEDERAL FUND

EXPENDITURE AUTHORITY, $1,481,406 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $4,101,165.        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

MOTION:    TO SET THE HEALTH SYSTEMS DEVELOPMENT AND REGULATION BUDGET AS RECOMMENDED BY THE GOVERNOR WITH THE EXCEPTION OF THE HEALTHCARE RECRUITMENT PROGRAMS WHICH ARE NOW FUNDED THROUGH SPECIAL APPROPRIATIONS IN SB120 AND HB1170. THIS BUDGET NOW INCLUDES 70.0 FTES, $3,503,745 IN GENERAL FUNDS, $10,261,273 IN FEDERAL FUND EXPENDITURE AUTHORITY, $3,149,356 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $16,914,374.

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

MOTION:    TO SET THE HEALTH - DIV OF FAMILY & COMMUNITY HEALTH BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 188.5 FTES, $4,079,591 IN GENERAL FUNDS, $24,273,374 IN FEDERAL FUND EXPENDITURE AUTHORITY, $5,959,261 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $34,312,226.        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White,

Dryden, Tidemann, Cronin, Peters

MOTION:    TO SET THE HEALTH - LABORATORY SERVICES BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 28.0 FTES, $3,308,015 IN FEDERAL FUND EXPENDITURE AUTHORITY, $3,426,286 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $6,734,301.                        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters

MOTION:    TO SET THE HEALTH - TOBACCO PREVENTION BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 3.0 FTES, $1,552,685 IN FEDERAL FUND EXPENDITURE AUTHORITY, $4,500,212 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $6,052,897.

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Was not acted on.

Department of Labor & Regulation, SD Retirement System - FY17 Budget
Presented by Stephanie Gruba, LRC Fiscal Staff

MOTION:    TO SET THE SOUTH DAKOTA RETIREMENT SYSTEM BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 33.0 FTES, $4,321,992 IN OTHER FUND EXPENDITURE AUTHORITY.        

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (18-0-0-0)

Voting Yes:    Bordeaux, Ring, Jensen (Alex), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Van Gerpen, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin, Peters


MOTION:    ADJOURN

Moved by:    Jensen (Alex)
Second by:    Partridge
Action:    Prevailed by voice vote.

Barb Bjorneberg
Committee Secretary



____________________________                ____________________________
DEB PETERS, Co-Chair                    JUSTIN R. CRONIN, Co-Chair

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