JOURNAL OF THE HOUSE

NINETY-SECOND SESSION




FOURTH DAY




STATE OF SOUTH DAKOTA
House of Representatives, Pierre
Friday, January 13, 2017

    The House convened at 12:30 p.m., pursuant to adjournment, the Speaker presiding.

    The prayer was offered by the Chaplain, Pastor Dan Bader, followed by the Pledge of Allegiance led by House page Austin Lannen.

    Roll Call: All members present except Reps. Conzet, Otten, Rozum, and Stevens who were excused.

APPROVAL OF THE JOURNAL

MR. SPEAKER:

    The Committee on Legislative Procedure respectfully reports that the Chief Clerk of the House has had under consideration the House Journal of the third day.

    All errors, typographical or otherwise, are duly marked in the temporary journal for correction.

    And we hereby move the adoption of the report.

Respectfully submitted,
G. Mark Mickelson, Chair

    Which motion prevailed.
COMMUNICATIONS AND PETITIONS

January 13, 2017

Lt. Governor Matt Michels, President of the Senate
Mark Mickelson, Speaker of the House
500 East Capitol Avenue
Pierre, SD 57501

Dear President and Speaker,

Pursuant to Article IV, Section 8 of the South Dakota Constitution, I respectfully submit to the Legislature the enclosed Executive Orders concerning the administrative organization of state government on this 4th Legislative day, January 13, 2017.

Sincerely,
Dennis Daugaard
Governor

    See page 54 of the House Journal for the Executive Reorganization Orders 2017-01 and 2017-02.

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1006 and 1020 and returns the same with the recommendation that said bills do pass and be placed on the consent calendar.

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1025 and returns the same with the recommendation that said bill be amended as follows:

1025ca

    On page 2, line 7, of the printed bill, delete "employee of the South Dakota Lottery,".

    On page 2, line 7, after "licensee," delete "or".


    On page 2, line 7, after "vendor" insert ", or employee of the South Dakota Lottery".

    And that as so amended said bill do pass.

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1033 and returns the same with the recommendation that said bill be amended as follows:

1033fb

    On page 2, line 6, of the printed bill, delete "chapter 5-18" and insert "the code".

    On page 2, delete lines 7 and 8, and insert "The state shall notify each current or prospective contractor or subcontractor that the awarding of a contract with the state has granted or will grant access to confidential information obtained from the United States Internal Revenue Service or an authorized secondary source. Each person who is granted access to the confidential information as a result of entering into a contract with the state".

    On page 2, line 9, delete everything before "shall" .

    And that as so amended said bill do pass.

Respectfully submitted,
Larry Rhoden, Chair

Also MR. SPEAKER:

    The Committee on Education respectfully reports that it has had under consideration HB 1022 and returns the same with the recommendation that said bill do pass.

Respectfully submitted,
Timothy R. Johns, Chair

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB1032 and returns the same with the recommendation that said bill do pass.



Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB 1028 and returns the same with the recommendation that said bill be amended as follows:

1028ba

    On page 5, line 5, of the printed bill, remove the overstrikes from "committing the offense and".

    On page 5, line 5, after "known," insert "believed to be".

    And that as so amended said bill do pass.

Respectfully submitted,
Timothy R. Johns, Vice Chair

MESSAGES FROM THE SENATE

MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Joint-Select Committee relative to making arrangements for the distribution of the official directory, Senate and House journals, and bills and other legislative printing for the two houses and the state offices.

Also MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Joint-Select Committee relative to securing chaplains for the Ninety-second Legislative Session.

Also MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Joint-Select Committee relative to making arrangements for a memorial recognition of deceased former members of the House and Senate.

Also MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Joint-Select Committee relative to arranging for legislative days for the members, officers, and employees of the House and Senate.



Also MR. SPEAKER:

    I have the honor to inform your honorable body that the Senate has adopted the report of the Joint-Select Committee relative to setting the compensation schedule for the elective and appointive officers and employees of the Senate and House for the Ninety-second Legislative Session.

Respectfully,
Kay Johnson, Secretary

MOTIONS AND RESOLUTIONS

    Rep. Qualm moved that the temporary house rules of the Ninety-second Legislative Session be made the permanent house rules of the Ninety-second Legislative Session.

    The question being on Rep. Qualm's motion that the temporary house rules of the Ninety-second Legislative Session be made the permanent house rules of the Ninety-second Legislative Session.

    And the roll being called:

    Yeas 63, Nays 3, Excused 4, Absent 0

    Yeas:
Ahlers; Anderson; Bartels; Bartling; Beal; Bordeaux; Brunner; Campbell; Carson; Chase; Clark; DiSanto; Duvall; Frye-Mueller; Glanzer; Goodwin; Gosch; Greenfield (Lana); Haggar; Haugaard; Hawley; Heinemann; Holmes; Howard; Hunhoff; Jamison; Jensen (Kevin); Johns; Johnson; Kaiser; Karr; Kettwig; Lake; Latterell; Lesmeister; Lust; Marty; McCleerey; McPherson; Mills; Peterson (Kent); Peterson (Sue); Pischke; Qualm; Rasmussen; Reed; Rhoden; Ring; Rounds; Schaefer; Schoenfish; Smith; Soli; Steinhauer; Tieszen; Tulson; Turbiville; Willadsen; Wismer; Wollmann; York; Zikmund; Speaker Mickelson

    Nays:
Dennert; Livermont; May

    Excused:
Conzet; Otten (Herman); Rozum; Stevens

    So the motion having received an affirmative vote of a majority of the members-elect, the Speaker declared the motion carried.

    Rep. Qualm moved that HB 1005 be referred from the Joint Committee on Appropriations to the Committee on State Affairs.

    Which motion prevailed.


    Rep. Qualm moved that HB 1009 be referred from the Joint Committee on Appropriations to the House Committee on Appropriations

    Which motion prevailed.

    Rep. Qualm moved that HB 1024 be referred from the Joint Committee on Appropriations to the House Committee on Appropriations

    Which motion prevailed.

    Rep. Qualm moved that HB 1039 be referred from the Joint Committee on Appropriations to the House Committee on Appropriations

    Which motion prevailed.

CONSIDERATION OF REPORTS OF JOINT-SELECT COMMITTEES

    Rep. Qualm moved that the report of the Joint-Select Committee relative to the Joint Rules for the Ninety-second Legislative Session as found on page 42 of the House Journal be adopted.

    Rep. Kaiser moved as a substitute motion that the report of the Joint-Select Committee relative to the Joint Rules for the Ninety-second Legislative Session as found on page 42 of the House Journal not be adopted and be returned to the Joint-Select Committee.

    The question being on Rep. Kaiser's substitute motion that the report of the Joint-Select Committee relative to the Joint Rules for the Ninety-second Legislative Session as found on page 42 of the House Journal not be adopted and be returned to the Joint-Select Committee.

    And the roll being called:

    Yeas 19, Nays 47, Excused 4, Absent 0

    Yeas:
Brunner; Campbell; Clark; Dennert; DiSanto; Frye-Mueller; Goodwin; Gosch; Greenfield (Lana); Haugaard; Howard; Johns; Kaiser; Karr; Latterell; Livermont; Marty; May; Pischke

    Nays:
Ahlers; Anderson; Bartels; Bartling; Beal; Bordeaux; Carson; Chase; Duvall; Glanzer; Haggar; Hawley; Heinemann; Holmes; Hunhoff; Jamison; Jensen (Kevin); Johnson; Kettwig; Lake; Lesmeister; Lust; McCleerey; McPherson; Mills; Peterson (Kent); Peterson (Sue); Qualm; Rasmussen; Reed; Rhoden; Ring; Rounds; Schaefer; Schoenfish; Smith; Soli; Steinhauer; Tieszen; Tulson; Turbiville; Willadsen; Wismer; Wollmann; York; Zikmund; Speaker Mickelson


    Excused:
Conzet; Otten (Herman); Rozum; Stevens

    So the motion not having received an affirmative vote of a majority of the members-elect, the Speaker declared the motion lost.

    The question being on Rep. Qualm's motion that the report of the Joint-Select Committee relative to the Joint Rules for the Ninety-second Legislative Session as found on page 42 of the House Journal be adopted.

    And the roll being called:

    Yeas 51, Nays 15, Excused 4, Absent 0

    Yeas:
Ahlers; Anderson; Bartels; Bartling; Beal; Bordeaux; Carson; Chase; Clark; DiSanto; Duvall; Glanzer; Haggar; Hawley; Heinemann; Holmes; Hunhoff; Jamison; Jensen (Kevin); Johns; Johnson; Kettwig; Lake; Lesmeister; Lust; McCleerey; McPherson; Mills; Peterson (Kent); Peterson (Sue); Pischke; Qualm; Rasmussen; Reed; Rhoden; Ring; Rounds; Schaefer; Schoenfish; Smith; Soli; Steinhauer; Tieszen; Tulson; Turbiville; Willadsen; Wismer; Wollmann; York; Zikmund; Speaker Mickelson

    Nays:
Brunner; Campbell; Dennert; Frye-Mueller; Goodwin; Gosch; Greenfield (Lana); Haugaard; Howard; Kaiser; Karr; Latterell; Livermont; Marty; May

    Excused:
Conzet; Otten (Herman); Rozum; Stevens

    So the motion having received an affirmative vote of a majority of the members-elect, the Speaker declared the motion carried.


FIRST READING OF HOUSE BILLS AND JOINT RESOLUTIONS

    HB 1052 Introduced by: Representatives Haggar, DiSanto, Latterell, and Rhoden and Senators Curd, Ewing, Langer, Netherton, and Novstrup

    FOR AN ACT ENTITLED, An Act to provide certain protections for public employees who report violations of law.

    Was read the first time and referred to the Committee on State Affairs.

    Rep. Beal moved that the House do now adjourn, which motion prevailed and at 1:08 p.m. the House adjourned.

Arlene Kvislen, Chief Clerk

EXECUTIVE REORGANIZATION ORDER
2017-01


WHEREAS, Article IV, Section 8, of the constitution of the state of South Dakota provides that, "Except as to elected constitutional officers, the Governor may make such changes in the organization of offices, boards, commissions, agencies and instrumentalities, and in allocation of their functions, powers and duties, as he considers necessary for efficient administration. If such changes affect existing law, they shall be set forth in executive orders, which shall be submitted to the Legislature within five legislative days after it convenes, and shall become effective, and shall have the force of law, within ninety days after submission, unless disapproved by a resolution concurred in by a majority of all the members of either house"; and

WHEREAS, this executive order has been submitted to the 92nd Legislative Assembly on the 4th legislative day, being the 13th day of January, 2017;

IT IS, THEREFORE, BY EXECUTIVE ORDER, directed that the executive branch of state government be reorganized to comply with the following sections of this order.

GENERAL PROVISIONS

    Section 1. This executive order shall be known and may be cited as the "Executive Reorganization Order 2017-01".

    Section 2. Any agency not enumerated in this order, but established by law within another agency which is transferred to a principal department under this order, shall also be transferred in its current form to the same principal department and its functions shall be allocated between itself and the principal department as they are now allocated between itself and the agency within which it is established.

    Section 3. "Agency" as used in this order shall mean any board, authority, commission, department, bureau, division or any other unit or organization of state government.

    Section 4. "Function" as used in this order shall mean any authority, power, responsibility, duty or activity of an agency, whether or not specifically provided for by law.

    Section 5. Unless otherwise provided by this order, division directors shall be appointed by the head of the department of which the division is a part, and shall be removable at the pleasure of the department head, provided, however, that both the appointment and removal of division directors shall be subject to approval by the Governor.

    Section 6. It is the intent of this order not to repeal or amend any laws relating to functions performed by an agency, unless the intent is specifically expressed in this order or unless there is an irreconcilable conflict between this order and those laws.



    Section 7. If a part of this order is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this order is invalid in one or more of its applications, the part remains in effect in all valid applications.

    Section 8. Except when inconsistent with the other provisions of this order all rules, regulations and standards of the agencies involved in executive reorganization in effect on the effective date of this order, shall continue with full force and effect until they are specifically altered, amended, or revoked in the manner provided by law, unless the statutory authority for such rules is superseded by this order.

    Section 9. It is hereby declared that the sections, clauses, sentences and parts of this executive order are severable, are not matters mutual essential inducement, and any of them may be excised by any court of competent jurisdiction if any section, clause, sentence or part of this executive order would otherwise be unconstitutional or ineffective.

    Section 10. In the event that it has been determined that a function of a transferred agency, which has not been eliminated by this order, and its associated records, personnel, equipment, facilities, unexpended balances or appropriations, allocations or other funds have not been clearly allocated to an agency, the Governor shall specify by interim procedures the allocation of the function and its associated resources. At the next legislative session following the issuance of such interim procedures, the Governor shall make recommendations concerning the proper allocation of the functions or transferred agencies which are not clearly allocated by this order. Any interim procedures issued in conjunction with this section shall be filed with the Secretary of State.

    Section 11. The rights, privileges and duties of the holders of bonds and other obligations issued, and of the parties to contracts, leases, indentures, and other transactions entered into, before the effective date of this order, by the state or by any agency, officer, or employee thereof, and covenants and agreements as set forth therein, remain in effect, and none of those rights, privileges, duties, covenants, or agreements are impaired or diminished by abolition of an agency in this order. The agency to which functions of another agency are transferred is substituted for that agency and succeeds to its rights and leases, indentures, and other transactions.

    Section 12. No judicial or administrative suit, action or other proceeding lawfully commenced before the effective date of this order by or against any agency or any officer of the state, in his official capacity or in relation to the discharge of his official duties, shall abate or be affected by reason of taking effect of any reorganization under the provision of this order. The court may allow the suit, action or other proceeding to be maintained by or against the successor of any agency or any officer affected by this order.

    Section 13. If any part of this order is ruled to be in conflict with federal requirements which are a prescribed condition to the receipt of federal aid by the state, an agency or a

political subdivision, that part of this order has no effect and the Governor may by executive order make necessary changes to this order to receive federal aid, and the changes will remain in effect until the last legislative day of the next legislative session or until the Legislature completes legislation addressed to the same questions, whichever comes first.

    Section 14. Pursuant to § 2-16-9, the Code Commission and Code Counsel of the Legislative Research Council are required to make the name and title changes necessary to correlate and integrate the organizational changes made by this Executive Reorganization Order into the South Dakota Codified Laws.

    Section 15. Any provisions of law in conflict with this order are superseded.

    Section 16. Whenever a function is transferred by this order, all personnel, records, property, unexpended balances or appropriations, allocations or other funds utilized in performing the function are also transferred by this order.

    Section 17. The effective date of this Executive Reorganization Order #2017-01 shall be ninety days after its submission to the Legislature.

Adult Services and Aging Division of the Department of Social Services transferred
to the Department of Human Services


    Section 18. The Division of Adult Services and Aging in the Department of Social Services is hereby transferred to the Department of Human Services. The Secretary of the Department of Human Services shall perform the functions of the Secretary of the Department of Social Services, relating to the Division of Adult Services and Aging.

    Section 19. The functions of the South Dakota Advisory Council on Aging established by Executive Order 2012-04 shall now be performed in relation to the Department of Human Services. The Secretary of Human Services shall perform the functions of the former Secretary of Social Services relating to the South Dakota Advisory Council on Aging.

    Section 20. That § 1-36-36 be amended to read as follows.

    1-36-36. Each person hired by the Department of Social Services to serve as a social service aide, family services specialist, family services specialist supervisor, and regional manager in the Division of Child Protection Services or by the Department of Human Services as a home health aide, adult services and aging specialist, social services supervisor, and regional manager in the Division of Adult Services and Aging shall submit to a criminal background investigation, by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. The department shall submit completed fingerprint cards to the Division of Criminal Investigation before the prospective new employee enters into service. If no disqualifying record is identified at the state level, the fingerprints shall

be forwarded by the Division of Criminal Investigation to the Federal Bureau of Investigation for a national criminal history record check. Any person whose employment is subject to the requirements of this section may enter into service on a temporary basis pending receipt of results of the criminal background investigation. The department may, without liability, withdraw its offer of employment or terminate the temporary employment without notice if the report reveals a disqualifying record. Any person whose employment is subject to the requirements of this section shall pay any fees charged for the criminal record check.

    Section 21. That § 1-36A-1.3 be amended to read as follows.

    1-36A-1.3. Agencies constituting department. The Department of Human Services shall consist of the following agencies:

    (1)    The Division of Developmental Disabilities;

    (2)    South Dakota Developmental Center--Redfield;

    (3)    The Division of Rehabilitation Services;

    (4)    The Division of Service to the Blind and Visually Impaired;

    (5)    The Division of Adult Services and Aging.

    Section 22. That § 22-46-5 be amended to read as follows.

    22-46-5. The person or agency that receives, pursuant to § 22-46-7, a report of abuse, neglect, or exploitation of an elder or adult with a disability shall also forward the report to the Office of the Attorney General, if the person or agency determines that reasonable suspicion exists to support further investigation. In investigating a violation of this chapter, law enforcement agencies shall cooperate with and assist the Department of Social Human Services. Upon receiving a report made pursuant to this chapter, the law enforcement agency shall evaluate whether a criminal investigation is appropriate.

    Section 23. That § 22-46-7 be amended to read as follows.

    22-46-7. A report of abuse, neglect, or exploitation under this chapter may be made orally or in writing to the state's attorney of the county in which the elder or disabled adult resides or is present, to the Department of Social Human Services, or to the law enforcement officer. The state's attorney or law enforcement officer, upon receiving a report, shall immediately notify the Department of Social Human Services.


    Section 24. That § 22-46-9 be amended to read as follows.

    22-46-9. Any:
    (1)    Physician, dentist, doctor of osteopathy, chiropractor, optometrist, podiatrist, religious healing practitioner, hospital intern or resident, nurse, paramedic, emergency medical technician, social worker, or any health care professional;

    (2)    Psychologist, licensed mental health professional, or counselor engaged in professional counseling; or

    (3)    State, county, or municipal criminal justice employee or law enforcement officer;
who knows, or has reasonable cause to suspect, that an elder or adult with a disability has been or is being abused, neglected, or exploited, shall, within twenty-four hours, report such knowledge or suspicion orally or in writing to the state's attorney of the county in which the elder or adult with a disability resides or is present, to the Department of Social Human Services, or to a law enforcement officer. Any person who knowingly fails to make the required report is guilty of a Class 1 misdemeanor.

    A person described in this section is not required to report the abuse, neglect, or exploitation of an elder or adult with a disability if the person knows that another person has already reported to a proper agency the same abuse, neglect, or exploitation that would have been the basis of the person's own report.

    Section 25. That § 28-1-44 be transferred to chapter 1-36A and amended to read as follows.

    28-1-44. The Department of Social Human Services may establish a program of services for adults and the elderly to promote the development, coordination, and utilization of resources to meet the long-term needs of adults and the elderly and to provide services to assist them in their social and health problems. The program may include program planning and development, coordination of services for adults and the elderly, and administration of programs funded under the Older Americans Act, Social Security Act, and other federal programs which are available for health, social, transportation, nutrition, counseling, protective, and referral services for adults and the elderly.

    Section 26. That § 28-1-45 be transferred to chapter 1-36A.

    Section 27. That § 28-1-45.1 be transferred to chapter 1-36A.

    Section 28. That § 28-1-45.2 be transferred to chapter 1-36A.

    Section 29. That § 28-1-45.5 be transferred to chapter 1-36A.


    Section 30. That § 28-1-45.7 be transferred to chapter 1-36A.

    Section 31. That § 29A-5-110 be amended to read as follows.

    29A-5-110. Any adult individual may be appointed as a guardian, a conservator, or both, if capable of providing an active and suitable program of guardianship or conservatorship for the minor or protected person, and if not employed by any public or private agency, entity, or facility that is providing substantial services or financial assistance to the minor or protected person. The court may waive the prohibition on appointing an individual as guardian or conservator because of the individual's employment if the court finds the appointment is in the best interest of the minor or protected person.

    Any public agency or nonprofit corporation may be appointed as a guardian, a conservator, or both, if it is capable of providing an active and suitable program of guardianship or conservatorship for the minor or protected person, and if it is not providing substantial services or financial assistance to the minor or protected person.

    Any bank or trust company authorized to exercise trust powers or to engage in trust business in this state may be appointed as a conservator if it is capable of providing a suitable program of conservatorship for the minor or protected person.

     The Department of Human Services or the Department of Social Services may be appointed as a guardian, a conservator, or both, for individuals under its care to whom it is providing services or financial assistance, but such appointment may only be made if there is no individual, nonprofit corporation, bank or trust company, or other public agency that is qualified and willing to serve.

     No individual or entity, other than a bank or trust company, whose only interest is that of a creditor, is eligible for appointment as either a guardian or conservator.

    No individual who has been convicted of a felony is eligible for appointment as a guardian or conservator unless the court finds appointment of the person convicted of a felony to be in the best interests of the person for whom the guardianship or conservatorship is sought. As part of the best interest determination, the court shall consider the nature of the offense, the date of offense, and the evidence of the proposed guardian's or proposed conservator's rehabilitation.

     A person, except for a financial institution or its officers, directors, employees, or agents, or a trust company, who has been nominated for appointment as a guardian or conservator, shall obtain an Interstate Identification Index criminal history record check and a record check of South Dakota state court civil judgments for abuse, neglect, or exploitation of an elder or adult with a disability. The nominee shall file the results of these record checks with the court at least ten days prior to the appointment hearing date, unless waived or modified by the court for good cause shown by affidavit filed simultaneously with the petition for appointment.



    The judge may not sign an order appointing a guardian or conservator until the record check results have been filed with the court and reviewed by the judge. The record check results, or the lack thereof, shall be certified by affidavit. The court may not require a record check upon the application of a petitioner for a temporary guardianship or temporary conservatorship. The court may waive the record check for good cause shown.

    Section 32. That § 29A-5-305 be amended to read as follows.

    29A-5-305. A petition for the appointment of a guardian, a conservator, or both, may be filed by the person alleged to need protection, by an interested relative, by the individual or facility that is responsible or has assumed responsibility for the person's care or custody, by the individual or entity that the person has nominated as guardian or conservator, or by any other interested person, including the department of human services or the department of social services.

    The petition shall state the petitioner's name, place of residence, post office address, and relationship to the person alleged to need protection, and shall, to the extent known as of the date of filing, state the following with respect to the person alleged to need protection and the relief requested:

    (1)    The person's name, date of birth, place of residence or location, and post office address or, if it is alleged that the person is an absentee, the person's last known residence and post office address;

    (2)    The names and post office addresses of the person's nearest relatives, in the following order:

        (a)    The spouse and children, if any; or if none

        (b)    The parents and brothers and sisters, if any; or if none

        (c)    The nearest known relatives who would be entitled to succeed to the person's estate by intestate succession;

    (3)    The name, place of residence or location, and post office address of the individual or facility that is responsible for or has assumed responsibility for the person's care or custody;

    (4)    The name, place of residence or location, and post office address of any agent or agents designated under a durable power of attorney of which the person alleged to need protection is the principal, and the petitioner shall attach a copy of any such power or powers of attorney, if available;


    (5)    Whether the person's incapacity will prevent attendance at the hearing and the reasons therefor;

    (6)    If the petition alleges that the person is an absentee, a statement of the relevant circumstances, including the time and nature of the disappearance or detention and a description of any search or inquiry concerning the person's whereabouts;

    (7)    The type of guardianship or conservatorship requested, the reasons therefor, and the interest of the petitioner in the appointment;

    (8)    The name, post office address and, if the proposed guardian or conservator is an individual, the individual's age, occupation and relationship to the person alleged to need protection;

    (9)    The name, post office address and, if the person alleged to need protection has nominated a guardian or conservator who is an individual, the individual's age, occupation and relationship to the person alleged to need protection;

    (10) The name and post office address of any guardian or conservator currently acting, whether in this state or elsewhere;

    (11) If the appointment of a limited guardian is requested, the specific areas of protection and assistance to be included in the court's order of appointment; and

    (12) If the appointment of a limited conservator is requested, the specific areas of management and assistance to be included in the court's order of appointment.

Dated in Pierre, South Dakota, this 13th day of January, 2017.

                            Dennis Daugaard
                            Governor of South Dakota

    (Seal)                    ATTEST:

                            Teresa Bray, Deputy
                            On behalf of Shantel Krebs
                            Secretary of State


EXECUTIVE REORGANIZATION ORDER
2017-02

WHEREAS, Article IV, Section 8, of the constitution of the state of South Dakota provides that, "Except as to elected constitutional officers, the Governor may make such changes in the organization of offices, boards, commissions, agencies and instrumentalities, and in allocation of their functions, powers and duties, as he considers necessary for efficient administration. If such changes affect existing law, they shall be set forth in executive orders, which shall be submitted to the Legislature within five legislative days after it convenes, and shall become effective, and shall have the force of law, within ninety days after submission, unless disapproved by a resolution concurred in by a majority of all the members of either house"; and

WHEREAS, this executive order has been submitted to the 92nd Legislative Assembly on the 4th legislative day, being the 13th day of January, 2017;

IT IS, THEREFORE, BY EXECUTIVE ORDER, directed that the executive branch of state government be reorganized to comply with the following sections of this order.

GENERAL PROVISIONS

    Section 1. This executive order shall be known and may be cited as the "Executive Reorganization Order 2017-02".

    Section 2. Any agency not enumerated in this order, but established by law within another agency which is transferred to a principal department under this order, shall also be transferred in its current form to the same principal department and its functions shall be allocated between itself and the principal department as they are now allocated between itself and the agency within which it is established.

    Section 3. "Agency" as used in this order shall mean any board, authority, commission, department, bureau, division or any other unit or organization of state government.

    Section 4. "Function" as used in this order shall mean any authority, power, responsibility, duty or activity of an agency, whether or not specifically provided for by law.

    Section 5. Unless otherwise provided by this order, division directors shall be appointed by the head of the department or bureau of which the division is a part, and shall be removable at the pleasure of the department or bureau head, provided, however, that both the appointment and removal of division directors shall be subject to approval by the Governor.

    Section 6. It is the intent of this order not to repeal or amend any laws relating to functions performed by an agency, unless the intent is specifically expressed in this order or unless there is an irreconcilable conflict between this order and those laws.


    Section 7. If a part of this order is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this order is invalid in one or more of its applications, the part remains in effect in all valid applications.

    Section 8. Except when inconsistent with the other provisions of this order all rules, regulations and standards of the agencies involved in executive reorganization in effect on the effective date of this order, shall continue with full force and effect until they are specifically altered, amended, or revoked in the manner provided by law, unless the statutory authority for such rules is superseded by this order.

    Section 9. It is hereby declared that the sections, clauses, sentences and parts of this executive order are severable, are not matters of mutual essential inducement, and any of them may be excised by any court of competent jurisdiction if any section, clause, sentence or part of this executive order would otherwise be unconstitutional or ineffective.

    Section 10. In the event that it has been determined that a function of a transferred agency, which has not been eliminated by this order, and its associated records, personnel, equipment, facilities, unexpended balances or appropriations, allocations or other funds have not been clearly allocated to an agency, the Governor shall specify by interim procedures the allocation of the function and its associated resources. At the next legislative session following the issuance of such interim procedures, the Governor shall make recommendations concerning the proper allocation of the functions of transferred agencies which are not clearly allocated by this order. Any interim procedures issued in conjunction with this section shall be filed with the Secretary of State.

    Section 11. The rights, privileges and duties of the holders of bonds and other obligations issued, and of the parties to contracts, leases, indentures, and other transactions entered into, before the effective date of this order, by the state or by any agency, officer, or employee thereof, and covenants and agreements as set forth therein, remain in effect, and none of those rights, privileges, duties, covenants, or agreements are impaired or diminished by abolition of an agency in this order. The agency to which functions of another agency are transferred is substituted for that agency and succeeds to its rights and leases, indentures, and other transactions.

    Section 12. No judicial or administrative suit, action or other proceeding lawfully commenced before the effective date of this order by or against any agency or any officer of the state, in his official capacity or in relation to the discharge of his official duties, shall abate or be affected by reason of the taking effect of any reorganization under the provisions of this order. The court may allow the suit, action or other proceeding to be maintained by or against the successor of any agency or any officer affected by this order.

    Section 13. If any part of this order is ruled to be in conflict with federal requirements which are a prescribed condition to the receipt of federal aid by the state, an agency or a political subdivision, that part of this order has no effect and the Governor may by executive order make necessary changes to this order to receive federal aid, and the changes will

remain in effect until the last legislative day of the next legislative session or until the Legislature completes legislation addressed to the same question, whichever comes first.

    Section 14. Pursuant to § 2-16-9, the Code Commission and Code Counsel of the Legislative Research Council are requested to make the name and title changes necessary to correlate and integrate the organizational changes made by this Executive Reorganization Order into the South Dakota Codified Laws.

    Section 15. Any provisions of law in conflict with this order are superseded.

    Section 16. Whenever a function is transferred by this order, all personnel, records, property, unexpended balances of appropriations, allocations or other funds utilized in performing the function are also transferred by this order.

    Section 17. The effective date of this Executive Reorganization Order #2017-01 shall be ninety days after its submission to the Legislature.

Division of Securities and Division of Insurance Combined

    Section 18. The Division of Securities and its functions established in chapters 37-5B, 37-25A, and 47-31B are hereby transferred to the Division of Insurance.

    Section 19. Pursuant to § 2-16-9, the Code Commission and Code Counsel of the Legislative Research Council are requested to amend the following sections by deleting references to "Division of Securities" and inserting "Division of Insurance."

37-5B-1; 37-5B-5; 37-5B-44; 37-24-5.2; 37-25A-1; 37-25A-3; 37-25A-4; 37-25A-5; 37-25A-8; 37-25A-9; 37-25A-11; 37-25A-12; 37-25A-13; 37-25A-18; 37-25A-19; 37-25A-20; 37-25A-22; 37-25A-23; 37-25A-25; 37-25A-26; 37-25A-27; 37-25A-28; 37-25A-29; 37-25-30; 37-25A-31; 37-25A-32; 37-25A-33; 37-25A-34; 37-25A-35; 37-25A-36; 37-25A-41; 37-25A-42; 37-25A-44; 37-25A-45; 58-28-31

    Section 20. That § 1-37-21 be amended to read as follows:

    1-37-21. Administrative functions performed for subordinate divisions. The Department of Labor and Regulation shall, under the direction and control of the secretary of labor and regulation, perform all administrative functions (as defined in § 1-32-1) of the following divisions:

    (1) The Division of Banking, created by chapter 51A-2;

    (2) The Division of Securities;


    (3) (2) The Division of Insurance, created by chapter 58-2.

    This section does not apply to the special budgetary functions (as defined in § 1-32-1) of the State Banking Commission created by chapter 51A-2.

    Section 21. That § 1-37-16 be repealed.

    1-37-16. Division of Securities transferred. The Division of Securities and its functions in the former Department of Revenue and Regulation are transferred to the Department of Labor and Regulation created by Executive Reorganization Order 2011-01. The secretary of labor and regulation shall perform the functions of the former secretary of revenue and regulation, relating to the Division of Securities.

    Section 22. That § 1-47-8 be repealed.

    1-47-8. Division of Securities transferred. The Division of Securities and its functions in the former Department of Revenue and Regulation are transferred to the Department of Labor and Regulation. The secretary of the Department of Labor and Regulation shall perform the functions of the former secretary of the Department of Revenue and Regulation, relating to the Division of Securities.

Dated in Pierre, South Dakota, this 13th day of January, 2017.

                            Dennis Daugaard
                            Governor of South Dakota

    (Seal)                        ATTEST:

                            Teresa Bray, Deputy
                            On behalf of Shantel Krebs
                            Secretary of State