The prayer was offered by the Chaplain, Pastor Brad Urbach, followed by the Pledge of Allegiance led by House page James Francis.

     Roll Call: All members present except Rep. Deadrick who was excused.

Mr. Speaker and Members of the House of Representatives:

I have the honor to inform you that on March 13, 2008, I approved House Bills 1099, 1100, 1129, 1139, 1142, 1203, 1255, 1263, and 1272, and the same have been deposited in the office of the Secretary of State.

Respectfully submitted,
M. Michael Rounds
Governor

This bill seeks to create a new formula for the distribution of funds to the postsecondary technical institutes. However, if enacted, this bill would instead leave no guidelines for the distribution of funding to the technical institutes in FY2009 and would leave items that are currently funded such as maintenance and repair, new program costs, and daycare subsidies without a funding source. Additionally, there could be no dollars available to make the bond payment beginning in FY2010.

As written, House Bill 1016 would repeal all administrative rules regarding the set-aside funding and the current distribution formula. Furthermore, the basis of the new funding formula, the "Base funding allocation" described in Section 1 (2), does not take effect until FY2010. Therefore, after the FY2009 bond payment of $824,000, there would be no process available to distribute the remaining $18,663,140 to the technical institutes in FY2009.

Additionally, the language in HB 1016 is very unclear as to whether there is still an appropriation for the bond payment after FY2009. Section 1 (2) defines "Base funding allocation" for FY2010 as the amount appropriated in the general appropriations act for FY2009 including all set-aside funds. Section 2 then sets forth how the DOE shall distribute funds appropriated by the legislature. Section 2 (4) divides the "base funding allocation" defined in Section 1 (2) into a high cost program share and standard cost program share. Under this section, all of the dollars appropriated to the technical institutes would be spent leaving no dollars available to fulfill the obligation to make the bond payments which is set forth in Section 3 of the bill.

Of further concern is the creation of a new fund and corresponding sub funds within the state treasury for maintenance and repair, new program costs, and replacement of equipment, without a revenue source. These creations of a fund and sub funds are the opposite of what the Government Operations and Audit Committee and the legislature has been doing the past 2 years in identifying and eliminating statutes referring to inactive funds in the state treasury. This bill would therefore be against the general momentum of the legislature for the past 2 years and create a new fund and sub funds that would be in the South Dakota Codified Law, but without any revenue.

House Bill 1016 does nothing to benefit the technical institutes. There are no additional dollars provided and it would remove the current flexibility that the technical institutes enjoy in distributing the dollars that are available to them. Moreover, it would leave critical items, such as maintenance and repair, new programs, and daycare unfunded. The easier, more flexible process for changing the distribution formula already exists in the administrative rules process.

Therefore, for all of these reasons, I respectfully request that you concur with my action and sustain my veto.

Respectfully submitted,
M. Michael Rounds
Governor

The Honorable Thomas J. Deadrick
Speaker of House
State Capitol
Pierre, SD 57501-5070

Dear Mr. Speaker and Members of the House:

I herewith return House Bill 1233 and VETO the same.

House Bill 1233 is entitled, "An Act to bring transparency to state spending by requiring the Bureau of Finance and Management to create a website making certain state government information available to the public." I want to make it abundantly clear that I support the concept of making the public financial records of state government more accessible to the people of this state. Unfortunately, this bill is an inappropriate vehicle to do so.

The provisions of this bill do not adequately define the information to be made available. Much of what the bill mandates is already on the Internet. Other information specified is not obtainable within the annual deadline set forth. There are duplicate references to vague and indistinct classifications of expenditures and revenues. Other classifications are missing entirely, or conflict with the state's chart of accounts. Does this bill seek to redefine these classifications, in conflict with the authority granted to the governor and the commissioner of Finance and Management under Chapter 4-7 of the SDCL?

Of the 19 items this bill requires to be placed on the website, only 5 are defined clearly and accurately enough to constitute valid classifications of expenditure or revenue. This means that over 70 percent of the information specified in this Act is imprecise, unavailable, or duplicative.

Some of the requested data will require changes to several state agency information systems to forward the level of detail necessary to the accounting system for "search ability" as directed by the bill.

The bill would require development of a technical architecture for the creation of numerous electronic interfaces to data maintained by the South Dakota Housing Development Authority, the Building Authority, and the South Dakota Science and Technology Authority. Some of these interfaces would need to be developed with the depository trust company who actually makes the bond payments for these authorities.

Further, the supporters of the bill fail to acknowledge the costs associated with carrying out the parts of this Act that are feasible. The way the Act is written, it would require a one-time expenditure of over $612,000 of the taxpayers' dollars, and create an annual price tag of over $109,000. This bill provides no resources to accomplish the provisions of the Act. Using other funds that are billed to the rest of state government would not comply with the state's cost allocation plan as negotiated with the federal government under the Office of Management and Budget's Circular A-87.

I am willing to explore what that approach should be with you, but for the reasons stated above I respectfully request that you concur with my action.

Respectfully submitted,
M. Michael Rounds
Governor

Because this bill would violate federal regulations that the state and schools must follow in order to receive federal funds, because this bill does not contain any appropriations to implement what the IEP teams would mandate, and because legitimate concerns can be addressed without this legislation this year by establishing a working group to develop solutions, I respectfully request that you agree with my action and sustain this veto.

Respectfully submitted,
M. Michael Rounds

SDCL 43-41B-1, specifically includes, "gift certificates" within the definition of, intangible property," as used within that chapter. SDCL 43-41B-2, states that all intangible property, including any income or increment derived therefrom, less any lawful charges, that is held, issued, or owing which remains unclaimed by the owner for more than 5 years after it became payable or distributable is presumed abandoned.

That chapter goes on to state in 43-41B-3, unless provided by other statute, intangible property is subject to the custody of the state as unclaimed property if the conditions raising a presumption of abandonment under that chapter are met. Those conditions would include where the gift certificate was purchased in this state, and the last known address of the apparent owner or other person entitled to the property is unknown, which would generally be the case with gift certificates and gift cards.

No where does chapter 43-41B authorize the business issuing the gift certificate to fix expiration dates. In fact, it seems clear 43-41B envisions that the property identified as covered by the chapter, including gift certificates, is to be held for a period of 5 years at which point the property, if unclaimed, reverts to the state treasury and held in trust as unclaimed property.

This conclusion is reinforced by the language of 43-41B-15, which provides:

    A gift certificate or a credit memo issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned.

Again, it appears that an expiration date short of 5 years is not contemplated by current law. Thus, this bill would tacitly authorize the fixing of expiration dates short of the 5-year time frame in Chapter 43-41B, thereby denying the owner the opportunity to use the gift certificate or gift card for a full 5 years. I do not believe this is good public policy. Citizens should not be further restricted in their ability to redeem gift certificates.

Therefore, I respectfully request that you concur with my action.

Respectfully submitted,
M. Michael Rounds
Governor

The Honorable Thomas J. Deadrick
Speaker of House
State Capitol
Pierre, SD 57501

Dear Mr. Speaker and Members of the House:

I herewith return House Bill 1269 and VETO the same.

House Bill 1269 establishes a new liquor license which permits the holder of the license to sell malt beverages for off-premises consumption and wine produced by a South Dakota farm winery for off-premises consumption. The primary goal of House Bill 1269 is to create a license that can sell wine for off-premises consumption. This is because the license authorized by SDCL 35-4-2(17) currently permits the sale of malt beverages for off-premises consumption.
On February 14, 2008, I signed House Bill 1126, An Act to revise certain provisions regarding the issuance of on-sale wine licenses and the sale of wine. House Bill 1126 created a wine retailer license which permits the sale of wine for both on-premises and off-premises consumption. The wine retailer license authorized by House Bill 1126 can be used to sell wine for off-premises consumption, including wine produced by a South Dakota farm winery. Thus, there is no additional need for the creation of another license that permits the sale of wine for off-premises consumption. Frankly, House Bill 1126 provides more flexibility than House Bill 1269 because the holder of the wine retailer license of House Bill 1126 may sell wine for both on-premises and off-premises consumption. In sum, the enactment of House Bill 1126 displaced the need for the license sought by House Bill 1269.

There are also concerns regarding the language of House Bill 1269. Some may view the language of House Bill 1269 - "and wine produced pursuant to chapter 35-12 package dealers" - as favoring wine produced in our State versus wine produced in another state. Any claim of favoritism brings into the discussion the Commerce Clause of the United States Constitution. It is unnecessary to discuss the Commerce Clause here because House Bill 1126 has already resolved the problem that was the focus of House Bill 1269.

For these reasons, I have vetoed House Bill 1269. I respectfully request that you concur with my action.

Respectfully submitted,
M. Michael Rounds
Governor

    Which motion prevailed and the Speaker appointed as such committee Reps. Rave, Rhoden, and Hargens.

    Your Joint-Select Committee appointed to consider the matter of adjournment sine die of the Eighty-third Legislative Session respectfully reports that the Senate and House of Representatives adjourn sine die at the hour of 2:50 p.m., March 17, 2008.

Respectfully submitted,    Respectfully submitted,
Tim Rave    Dave Knudson
Larry Rhoden    Thomas Dempster
Dale Hargens    Scott Heidepriem
House Committee    Senate Committee

    I have the honor to inform your honorable body that the Senate has adopted the report of the Joint-Select Committee for the purpose of fixing the time of adjournment sine die for the Eighty-third Legislative Session.

     The Committee on Legislative Procedure respectfully reports that the House and Senate have, pursuant to the Governor's veto of HB 1269, overridden that veto and delivered the same to his Excellency, the Secretary of State, for filing at 2:43 p.m., March 17, 2008.

    The following prayer was offered by Pastor Brad Urbach.

    Holy and gracious Father, as we move forward from this legislative session we pray for Your continued blessing upon the men and women who have faithfully served.

    We thank You especially for those whose legislative terms now come to an end.

    Grant safety to all who travel this day. We ask Your guidance upon those who will serve on summer studies and take on various leadership responsibilities. Continue to bless them with good insight and wisdom as they address issues of common interest for our state.

    We pray Your blessings upon the Speaker of the House, Tom Deadrick, who is healing from an illness.

    We, too, thank You for the gathering of the family of Master Sergeant Woodrow Wilson Keeble, who bravely served our country and whose memory is honored this day for his bravery and valor.

    As we journey into spring we beseech You, Heavenly Father, for greatly needed moisture for our fields and our waterways.

    We ask You to bless our beloved State of South Dakota, that we might use all of our resources, natural and human, to Your glory and the well being of our whole state.

    So, indeed Father, we thank You for this day, and for the blessing of these women and men of the House of Representatives, and for the well being of our state.

    This we all ask of You, and this I would pray in the name of Christ Jesus. Amen.

Whereas, Master Sergeant Woodrow Wilson Keeble, son of Isaac and Nancy (Shaker) Keeble, was born in Waubay, South Dakota; and,

Whereas, Master Sergeant Keeble was a member of the Sisseton-Wahpeton Oyate of the Lake Traverse Reservation, a Sioux Native American tribe, and a U.S. Army National Guard veteran of both World War II and the Korean War; and,

Whereas, Master Sergeant Keeble was awarded the Distinguished Service Cross, the Silver Star, the Bronze Star with V device for Valor, the Bronze Star for merit, the Combat Infantryman Badge (first and second awards), and two Purple Hearts; and,

Whereas, Master Sergeant Keeble was posthumously awarded our nation's highest award, the Congressional Medal of Honor, by President George W. Bush on March 3, 2008, for his actions in the Korean War. He is the first full-blooded Sioux Indian to receive the Medal of Honor; and,

Whereas, Master Sergeant Keeble symbolizes the valor and bravery of all infantrymen not only from South Dakota, but from the entire country; and,

Whereas, The legacy of Master Sergeant Keeble's bravery will serve to inspire generations of South Dakotans; and,

Whereas, South Dakota is indebted to Master Sergeant Keeble for preserving that which we so bountifully enjoy - liberty and freedom; and,

Whereas, It is fitting and proper as Governor to remember Master Sergeant Woodrow Wilson Keeble for his dedicated and outstanding service to this country and state:

Now, Therefore, I, M. Michael Rounds, Governor of the state of South Dakota, do hereby proclaim March 17, 2008, as