91st Legislative Session _ 2016

Committee: Joint Committee on Appropriations
Monday, February 29, 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 Cronin.

Bureau of Finance and Management - FY17 Budget
Annie Mehlhaff, LRC Fiscal Staff

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - BUREAU OF FINANCE AND MANAGEMENT BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 36.0 FTE'S, $910,784 IN GENERAL FUNDS, $4,994,024 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET

OF $5,904,808.

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

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

Excused:    Van Gerpen, Peters

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - SALE/LEASEBACK (BFM) BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $4,000,000 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), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin

Excused:    Van Gerpen, Peters

MOTION:    TO SET THE EXECUTIVE MANAGEMENT - COMPUTER SERVICES AND DEVELOPMENT BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $2,000,000 IN OTHER FUND EXPENDITURE AUTHORITY.

Moved by:    Haverly
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (15-1-2-0)

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

Voting No:    Partridge

Excused:    Van Gerpen, Peters


MOTION:    TO SET THE EXECUTIVE MANAGEMENT - EMPLOYEE COMPENSATION AND BILLING POOLS BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $12,317,102 IN GENERAL FUNDS, $6,095,224 IN FEDERAL FUND EXPENDITURE AUTHORITY, $12,945,331 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $31,357,657.

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

The Legislative Branch - FY17 Budget
Annie Mehlhaff - LRC Fiscal Staff

MOTION:    TO SET THE LEGISLATIVE OPERATIONS BUDGET WHICH INCLUDES 31.6 FTE'S, $6,011,295 IN GENERAL FUNDS, $6,000 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $6,017,295.

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

MOTION:    SUBSTITUTE MOTION TO SET THE LEGISLATIVE OPERATIONS BUDGET WHICH INCLUDES 31.6 FTE'S, $6,001,295 IN GENERAL FUNDS, $6,000 IN OTHER FUND EXPENDITURE AUTHORITY, FOR A TOTAL FY17 BUDGET OF $6,007,295.

Moved by:    Hunhoff (Jean)
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (11-5-2-0)

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

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

Excused:    Van Gerpen, Peters

MOTION:    TO SET THE LEGISLATURE - LEGISLATIVE PRIORITY FUND BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES $1,000,000 IN OTHER FUND EXPENDITURE AUTHORITY.

Moved by:    Haverly

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

MOTION:    TO SET THE LEGISLATURE - AUDITOR GENERAL BUDGET AS RECOMMENDED BY THE GOVERNOR WHICH INCLUDES 39.0 FTES AND $3,558,851 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), Partridge, Anderson, Hunhoff (Jean), Romkema, Buhl O'Donnell, Parsley, Omdahl, Haverly, Heineman (Phyllis), White, Dryden, Tidemann, Cronin

Excused:    Van Gerpen, Peters

    HB 1015: authorize the Department of Human Services to dismantle and demolish buildings and to restore the demolition site to its natural state on the South Dakota Developmental Center campus, to make an appropriation therefor, and to declare an emergency.

MOTION:    TO TABLE HB 1015

Moved by:    Dryden
Second by:    Tidemann
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 1043: revise the state aid to special education formula.

MOTION:    DO PASS HB 1043

Moved by:    Cronin
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

    HB 1044: revise the state aid to general education formula.

MOTION:    DO PASS HB 1044

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

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

Voting No:    Omdahl, Van Gerpen

    HB 1221: accommodate legislation relating to education funding.

MOTION:    TO TABLE HB 1221

Moved by:    Cronin
Second by:    Partridge
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 46: revise the notice filing fee for open-end management companies from a variable level tiered structure to a flat fixed fee.

MOTION:    AMEND SB 46

46ja

    On page 1, line 12, of the printed bill, overstrike "fee of".

    On page 1, delete lines 13 to 15, inclusive, and insert "hundred dollars for open-end

management companies with total net assets of fifty million dollars or less, or a filing fee of one thousand dollars for open-end management companies with total net assets of more than fifty million".


    On page 2, line 1, remove the overstrikes from "less than two hundred fifty million dollars, or a filing fee of two thousand".

    On page 2, remove the overstrikes from line 2.

    On page 2, line 3, remove the overstrikes from "than two hundred fifty million dollars".

    On page 2, line 3, delete "company".


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

MOTION:    DO PASS SB 46 AS AMENDED

Moved by:    Partridge
Second by:    Cronin
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 67: establish a postsecondary scholarship grant fund, to make an appropriation therefor, to transfer certain money, and to declare an emergency.

MOTION:    AMEND SB 67

67gc

    On page 1, between lines 3 and 4 of the printed bill, insert:

"    Section 1. That § 13-55A-14 be amended to read:

    13-55A-14. There is hereby created in the education enhancement trust fund the South Dakota need-based postsecondary scholarship grant fund for the purpose of providing grants and

scholarships through the Board of Regents pursuant to this chapter to qualified students for the need-based grant program pursuant to chapter 13-55A and the critical teaching needs scholarship program pursuant to §§ 13-55-64 to 13-55-71, inclusive. Any contributions into the education enhancement trust fund not designated for any other purpose shall be allocated to the need-based postsecondary scholarship grant fund. All distributions from the South Dakota need-based postsecondary scholarship grant fund are subject to transfer to the general fund and expenditure of all distributions shall be by an appropriation by the Legislature through the General Appropriations Act or special appropriations acts for the need-based postsecondary scholarship grant programs consistent with the provision of S.D. Const., Art. XII,§ 6, and § 4-5-29.2. The board may accept any gifts, contributions, or funds obtained from any other source for the purpose of carrying out the provisions of this section. For each fiscal year, the board may determine the amounts awarded for each scholarship grant program and shall award all available funds from the postsecondary scholarship grant fund annual transfer pursuant to § 4-5-29.2.

    Section 2. That § 4-5-29.2 be amended to read:

    4-5-29.2. Pursuant to S.D. Const., Art. XII, § 6, the state investment officer shall determine the market value of the education enhancement trust fund as of December 31, 2003, and each calendar year thereafter less the investment expenses transferred pursuant to § 4-5-30. The state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2008, the market value shall be determined by adding the market value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the education enhancement trust fund to the state general fund as soon as practicable after July first of the next fiscal year. For fiscal year 2017, the portion of the transfer to the general fund for the postsecondary scholarship grant programs shall be $126,707.35. Beginning in fiscal year 2015 2018, the portion of the transfer to the general fund for the need-based matching program postsecondary scholarship grant programs, shall be calculated by the state investment officer based on the relative share of the contributions made to the need-based postsecondary scholarship grant fund created pursuant to § 13-55A-14 to the most recently calculated total fair value of the education enhancement fund including the contribution. The calculation shall be updated monthly to reflect any additional contributions to the education enhancement trust fund and the portion of the transfer to the general fund for the need-based matching program postsecondary scholarship grant programs shall be based on the average of the monthly calculation as of December thirty-first, using the months available for the first forty-eight months and then the most recent forty-eight calendar months thereafter.

    Beginning in fiscal year 2015, a portion of the funds annually distributed to the general fund pursuant to this section representing the percentage of the appropriation in SL 2013, ch 91, § 9, when deposited, to the total fair value of the education enhancement fund applied to the distribution

amount shall be used to fund the critical teaching needs scholarship program created in §§ 13-55-64 to 13-55-71, inclusive.

    Section 3. The state treasurer shall transfer the original contribution of one million five hundred thousand dollars from the critical teaching needs scholarship fund pursuant to § 13-55-64 and one million five hundred thousand dollars from the need-based grant fund created pursuant to § 13-55A-14 into the postsecondary scholarship grant fund. The state investment officer shall calculate the fair value of the transfer amounts for purposes of the monthly calculations per § 4-5-29.2 using the most recent monthly calculation applied to the most recently calculated total fair value of the education enhancement trust fund.".


    On page 1, line 5, delete "need-based" and insert "postsecondary scholarship".

    On page 1, line 8, delete "need-based" and insert "postsecondary scholarship".


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

MOTION:    DO PASS SB 67 AS AMENDED

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

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

Voting No:    Van Gerpen

MOTION:    AMEND TITLE OF SB 67

67gta

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "establish a postsecondary scholarship grant fund, to make an appropriation therefor, to transfer certain money, and to declare an emergency.".

    On page 1, delete line 2.

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

    SB 87: revise certain programs and promote efficiency in state government and to make an appropriation therefor.

MOTION:    TO TABLE SB 87

Moved by:    Cronin
Second by:    Tidemann
Action:    Prevailed by roll call vote. (17-1-0-0)

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

Voting No:    Heineman (Phyllis)

    SB 88: revise certain programs and promote efficiency in state government.

MOTION:    TO TABLE SB 88

Moved by:    Cronin
Second by:    Tidemann
Action:    Prevailed by roll call vote. (15-3-0-0)

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

Voting No:    Omdahl, Van Gerpen, Heineman (Phyllis)

    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.

THE MOTION TO DO PASS SB 161

Moved by:    Ring

Second by:    Buhl O'Donnell
Action:    WAS NOT ACTED ON.

MOTION:    SUBSTITUTE MOTION DEFER SB 161 TO THE 41ST LEGISLATIVE DAY

Moved by:    Cronin
Second by:    Jensen (Alex)
Action:    Prevailed by roll call vote. (13-5-0-0)

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

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

    SB 49: revise certain fees collected by the secretary of state to make an appropriation for an online business registration and filing system, and to declare an emergency.

Others:    Annie Mehlhaff, Legislative Research Council
        Tom Deadrick, Secretary of States Office

MOTION:    AMEND SB 49

49me

    On page 1 of the printed bill, delete lines 5 to 15, inclusive, and insert:

"    Section 1. That the code be amended by adding a NEW SECTION to read:

    If a document, statement, or report is filed in the Office of the Secretary of State pursuant to §§ 47-1A-122, 47-28-6, 47-34A-212, 48-7-206.1, and 48-7A-1208 and the document, statement, or report is not filed electronically, but is able to be filed electronically and is allowed to be filed electronically, an additional fee of fifteen dollars shall be collected. The fee collected pursuant to this section shall be deposited in the general fund.

    Section 2. That § 47-34A-212 be amended to read:

    47-34A-212. The secretary of state shall charge and collect for:

            (a)    Filing the articles of organization in the case of a domestic limited liability company, a filing fee of one hundred fifty dollars. Filing the articles of organization in the case of a foreign limited liability company, a filing fee of seven hundred fifty dollars;
            (b)    Deleted by SL 2004, ch 279, § 2.
            (c)    A reporting fee of fifty dollars, due and payable with the filing of each annual report. Each entity that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state.

    Section 3. That § 1-8-12 be amended to read:

    1-8-12. The secretary of state shall charge a fee of fifty dollars for any expedited service. Expedited service is defined as completion sooner than the normal course of business upon request. The office shall deposit any revenue from this fee into the financing statement and annual report filing fee fund. ".


    Delete page 2.

    On page 3, delete line 1.

    On page 3, line 9, delete everything after "."

    On page 3, delete line 10.

    On page 7, delete lines 4 to 24, inclusive, and insert:

"    Section 9. That § 37-11-1 be amended to read:

    37-11-1. Any person regularly engaging in or conducting a business in this state shall file a fictitious name statement unless one of the following apply:

            (1)    The name of the business plainly shows the true surname of each person interested in the business; or

            (2)    The name of the business is on file with the secretary of state in a required business filing.

    The fictitious name statement shall include the name, post office address, and residence address of each person interested in the business and the address where the main office of the business is to be maintained. The fictitious name statement shall be electronically filed with the secretary of state, or filed in paper form with any register of deeds in the state. The filing shall be renewed every fifth year thereafter. A fee of ten dollars shall be paid with each new filing and renewal. The fee shall be retained by the filing office receiving the filing deposited into the financing statement and annual report filing fee fund.

    Section 10. That § 37-11-2 be amended to read:

    37-11-2. A verified statement as described in § 37-11-1 shall be similarly filed upon any change

of twenty-five percent or more of the ownership interest in the business. A fee of ten dollars shall be paid with each filing under this section. The fee shall be retained by the filing office receiving the filing deposited into the financing statement and annual report filing fee fund.

    Section 11. All fees collected by the secretary of state that are not specifically dedicated to the financing and annual report filing fee fund or for administering the concealed carry program pursuant to § 23-7-53 or for administering any concealed carry programs enacted by the Legislature after 2015, shall be deposited in the state general fund.

    Section 12. That § 57A-9-525 be amended to read:

    57A-9-525. (a) Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in subsection (b), is the amount specified in subsection (c), if applicable, plus:

            (1)    Twenty-five dollars if the record is communicated in writing and consists of one page, and five dollars for additional pages. One dollar of this fee shall be deposited into the financing statement and annual report filing fee fund;

            (2)    Twenty dollars if the record is communicated by internet. One dollar of this fee shall be deposited into the financing statement and annual report filing fee fund; and

            (3)    Twenty-five dollars if the record is communicated by another medium authorized by filing-office rule.

    (b) The secretary of state may request a fee for on-line services for UCC data images available on a subscription basis. The office shall deposit any revenue from this fee into the financing statement and annual report filing fee fund.

    (c) Except as otherwise provided in subsection (e), the fee for filing, whether communicated in writing, electronically, or another medium authorized by filing-office rule, and indexing an initial financing statement of the following kind is the amount specified in subsection (c), if applicable, plus:

            (1)    Forty dollars if the financing statement indicates that it is filed in connection with a public-finance transaction;

            (2)    Forty dollars if the financing statement indicates that it is filed in connection with a manufactured-home transaction.

    (c)(d) Except as otherwise provided in subsection (e), if a record is communicated in writing or electronically, the fee for each name more than one required to be indexed is three dollars.

    (d)(e) The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:

            (1)    Twenty dollars if the request is communicated in writing; and

            (2)    Ten dollars if the request is communicated by internet authorized by filing-office rule.

    Upon request the filing officer shall furnish a copy of any filed financing statement or statement of assignment for a uniform fee of one dollar per page.

    (e)(f) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under § 57A-9-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply. ".

    On page 8, delete lines 1 to 4, inclusive.


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

MOTION:    DO PASS SB 49 AS AMENDED

Moved by:    Peters
Second by:    White
Action:    Prevailed by roll call vote. (15-3-0-0)

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

Voting No:    Parsley, Omdahl, Van Gerpen

MOTION:    AMEND TITLE OF SB 49

49mtb

    On page 1, line 1, of the printed bill, delete everything after "state," .

    On page 1, line 2, delete "revise the allocation of fees,".


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

MOTION:    ADJOURN

Moved by:    Buhl O'Donnell
Second by:    Tidemann
Action:    Prevailed by voice vote.

Mary Turner
Committee Secretary

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

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