JOURNAL OF THE SENATE

NINETY-THIRD SESSION




FIFTH DAY




STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Tuesday, January 16, 2018

    The Senate convened at 2:00 p.m., pursuant to adjournment, the President presiding.

    The prayer was offered by the Chaplain, Fr. Joe Holzhauser, followed by the Pledge of Allegiance led by Senate page Bethany Lange.

    Roll Call: All members present.

APPROVAL OF THE JOURNAL

MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Secretary of the Senate has had under consideration the Senate Journal of the fourth 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,
Brock L. Greenfield, Chair

    Which motion prevailed.
COMMUNICATIONS AND PETITIONS

January 9, 2018

The Honorable Matt Michels
President of the Senate
500 E. Prospect
Pierre, SD 57501

Dear President and Members of the Senate:

    Pursuant to the provisions of Chapter 24-13 of the South Dakota Codified Laws and subject to your consent, I have the honor to inform you that I have reappointed Paige W. Bock to the South Dakota Board of Pardons and Parole.

Enclosed is a copy of the following:

    1.    The Statement of Financial Interest
    2.    Senate Confirmation Information
    3.    Oath
    4.    The October 30, 2017, letter of appointment

    This appointment is effectively January 16, 2018, and will expire January 17, 2022. Thank you.

Sincerely,
Marty J. Jackley
Attorney General

    The President announced the referral of the appointment to the Committee on Judiciary.

REPORTS OF STANDING COMMITTEES

MR. PRESIDENT:

    The Committee on Agriculture and Natural Resources respectfully reports that it has had under consideration SB 26 and returns the same with the recommendation that said bill do pass.


Also MR. PRESIDENT:

    The Committee on Agriculture and Natural Resources respectfully reports that it has had under consideration SB 39 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Respectfully submitted,
Gary L. Cammack, Chair

Also MR. PRESIDENT:

    The Committee on Education respectfully reports that it has had under consideration SB 18 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Also MR. PRESIDENT:

    The Committee on Education respectfully reports that it has had under consideration SB 66 and returns the same with the recommendation that said bill be amended as follows:

66ca

    On page 1, line 6, of the printed bill, delete "on the school district website" and insert "in the school board minutes".

    On page 1, line 8, delete "residing in" and insert "of".

    On page 1, line 8, delete everything after "district" and insert "on the date voter registration closes;".

    On page 1, delete line 9.

    On page 1, line 10, delete "residing in" and insert "of".

    On page 1, line 12, delete "residing in" and insert "of".

    On page 2, line 3, delete everything after "information" and insert "in the school board minutes.".

    On page 2, after line 3, insert:

"    Section 2. That chapter 13-7 be amended by adding a NEW SECTION to read:

    The school election information required in section 1 of this Act shall be provided within sixty days of the official canvass.".


66ja

    On page 1, line 8, of the printed bill, delete "eligible" and insert "registered".

    On page 1, line 10, delete "eligible" and insert "registered".

    On page 1, line 12, delete "eligible" and insert "registered".

66cta

    On page 1, line 1, of the printed bill, delete "post" and insert "provide".

    On page 1, line 2, delete everything after "elections" and insert "in the school board minutes.".

    And that as so amended said bill do pass.

Respectfully submitted,
Jim Bolin, Chair

Also MR. PRESIDENT:

    The Committee on Judiciary respectfully reports that it has had under consideration the nomination of Kenneth D. Albers of Lincoln County, Canton, South Dakota, to the Board of Pardons and Paroles and returns the same with the recommendation that the Senate advise and consent to the confirmation of said reappointment, and that said reappointment be placed on the consent calendar.

Also MR. PRESIDENT:

    The Committee on Judiciary respectfully reports that it has had under consideration the nomination of Krista Heeren-Graber, to the SD Interstate Compact for Adult Offender Supervision and returns the same with the recommendation that the Senate advise and consent to the confirmation of said reappointment, and that said reappointment be placed on the consent calendar.

Also MR. PRESIDENT:

    The Committee on Judiciary respectfully reports that it has had under consideration the interim nomination of Shannon Riter-Osborn of Rapid City, South Dakota, to the Board of Pardons and Paroles and returns the same with the recommendation that the Senate advise and consent to the confirmation of said interim appointment, and that said appointment be placed on the consent calendar.



Also Mr. PRESIDENT:

    The Committee on Judiciary respectfully reports that it has had under consideration the nomination of Shannon Riter-Osborn of Rapid City, South Dakota, to the Board of Pardons and Paroles and returns the same with the recommendation that the Senate advise and consent to the confirmation of said reappointment, and that said reappointment be placed on the consent calendar.

Respectfully submitted,
Lance S. Russell, Chair

ANNOUNCEMENTS

    The President announced the appointment of the following standing committee:

Military and Veteran Affairs (5)

Partridge (Chair), Haverly (Vice Chair), Stalzer, Tidemann, Killer

    There being no objection, the Senate reverted to Order of Business No. 6.

REPORTS OF JOINT-SELECT COMMITTEES

MR. PRESIDENT:

    Your Joint-Select Committee on Joint Rules respectfully reports that it has had under consideration the joint rules and recommends that the temporary joint rules adopted by the Ninety-third Legislative Session be adopted as the permanent joint rules of the Ninety-third Legislative Session with the following changes:

Amend Chapter 1 of the Joint Rules as follows:

1-8. Signing of documents by presiding officer. The presiding officer of each house shall sign all concurrent resolutions and commemorations and that are approved by the Legislature. The president pro tempore and the speaker shall sign all writs, warrants, and subpoenas issued by the house over which the officer presides.

1-10. Dissent against an act or resolution. Any two members of a house may dissent or protest in respectful language against any act or resolution which they think injurious to the public or to any individual. and have the The reason for their dissent or protest shall be presented to the house and entered upon the subsequent legislative day's journal. However, if an objection is made any member objects prior to adjournment on the subsequent legislative day that the language of the dissent or protest is not respectful, and a majority of

the house agrees, the house may refer the dissent or protest back to the dissenting or protesting members for emendation. Members submitting a dissenting report shall be given one opportunity for emendation, which shall be completed within one week of the request for emendation.

Amend Chapter 1A of the Joint Rules as follows:

1A-4. Sexual harassment prohibited. All members are responsible for ensuring that the workplace is free from sexual harassment. All members shall avoid any action or conduct which could be viewed as sexual harassment. A member shall report any sexual harassment complaint to the presiding officer of the house to which the member belongs. If the situation is not resolved, the member shall forward the complaint to the Executive Board of the Legislative Research Council.

Amend Chapter 1B of the Joint Rules as follows:

1B-3.2. Sexual harassment prohibited. All members are responsible for ensuring that the workplace is free from sexual harassment. All members shall avoid any action or conduct that could be viewed as sexual harassment. A member shall report any sexual harassment complaint to the president pro tempore or the speaker according to which house the member belongs. If the situation is not resolved, the member shall forward the complaint to the Executive Board of the Legislative Research Council.

1B-4. Action in event of violation. Failure to observe the highest standards of public conduct will subject a legislator to appropriate action, pursuant to the rules of the Chamber and Mason's Manual of Legislative Procedure respective house.

Amend Chapter 2 of the Joint Rules as follows:

2-1.   Those permitted on the floor during session. In addition to current legislators, only the following persons are entitled to the floor of the House of Representatives or Senate during sessions: justices of the Supreme Court or persons who are or have been Governor, Lieutenant Governor, or members of the Congress of the United States from South Dakota; former members of the South Dakota Legislature, except those currently serving in any elective state or local office other than Governor or Lieutenant Governor; current legislative employees; and news reporters; and former members of the South Dakota Legislature, except those who are registered lobbyists or those currently serving in any elective state or local office other than Governor or Lieutenant Governor. However, these persons may not be on the floor if acting in a manner to influence legislation. No other person may be admitted to the floor without consent of the presiding officer.

Amend Chapter 5 of the Joint Rules as follows:

5-3. Priority of motions.
When a question is under debate, no motion may be made except the following motions which have precedence in the order listed:

I 1.     To adjourn; (nondebatable)
II 2.     To recess;


III 3.     To call the house;
IV 4.     To lay on the table; (nondebatable)
V 5.     To call the previous question; (nondebatable)
VI 6.     To defer indefinitely;
VII 7.     To defer to a day certain;
VIII 8.     To refer to committee;
IX 9.     To amend.

5-8.1. Motion to postpone defer indefinitely or to the 41st day as final action. A motion to defer indefinitely or to a date beyond the sine die adjournment of the Legislature the 41st day requires the vote of a majority of the members-elect.

5-9. Division of the question. Any member may call for a division of the question. The presiding officer shall divide the question if it contains questions so distinct that, one being taken away, the rest may stand as a separate proposition. A motion for division of the question is not in order on a bill which is before either house for final disposition. A member may not call for the division of a bill.

5-15. Order of questions motions. All questions, other than privileged questions motions as listed in Joint Rule 5-3, shall be put in the order they are moved.

Amend Chapter 6C of the Joint Rules as follows:

6C-1. Bills and resolutions that require fiscal notes. A bill, amendment, or resolution that has an effect on the revenues, expenditures, or fiscal liability of the state or any political subdivision of the state may include a fiscal note incorporating an estimate of the effect. This rule does not apply to the cost of legislative processing, or any appropriation bill with specific dollar amounts. A fiscal note is an estimate of the fiscal implications relating to revenues, expenditures or debt, and the probable cost of the bill, amendment, or resolution. In preparing the fiscal note, the Director of the Legislative Research Council may use information or data supplied by any person, agency, organization, or governmental unit that the director deems reliable. The director shall state the sources of the information or data used and may state the extent to which the director relied on the information or data in preparing the fiscal note. If the director is unable to acquire or develop sufficient information or data to prepare a fiscal note, the director may prepare the fiscal note stating that fact, and the fiscal note shall be deemed to comply with this rule. If the director determines that the fiscal impact of a bill, amendment, or resolution cannot be determined, the director may prepare the fiscal note stating that fact, and the fiscal note shall be deemed to comply with this rule.

This rule does not apply to prison or jail population cost estimates required by §§ 2-1-19 and 2-1-20 2-9-33 and 2-9-34.

6C-1.3. Prison or jail population cost estimates. A prison or jail population cost estimate may be requested pursuant to Joint Rule 6C-1.1 for any bill or amendment with a Class 1 misdemeanor penalty that may impact the state prison or county jail population. The cost estimate shall be prepared pursuant to §§ 2-1-19 and 2-1-20 2-9-33 and 2-9-34.


Amend Chapter 7 of the Joint Rules as follows:

7-1.8. Final disposition. Final disposition is any action which moves a bill out of a committee to the floor of a house or to another committee or which removes it from further consideration by the committee. Examples of final disposition include "Do Pass," "Do Pass, Amended," "Refer to Another Committee," "Lay on the Table," and "Defer to a Day Certain Beyond the End of the Session the 41st Day."

7-4. Dissenting reports.
If the members of a committee cannot agree on its report, the majority and minority may each make a report. Any member dissenting in whole or in part from the reasoning and conclusions of both majority and minority may also present a statement of the member's reasoning and conclusions. All reports must shall be entered in the journal if found by the presiding officer to be decorous in language and respectful to the house and shall be entered in the journal.

7-16. Motions. When a question is under debate, no motion may be made except the following motions:

    (1)            Adjourn; (nondebatable)
    (2)            Recess;
    (3)            Call the previous question; (nondebatable)
    (4)            Lay on the table; (nondebatable)
    (5)            Defer to a day certain beyond the end of the session; the 41st day;
    (6)            Do pass;
    (7)            Do pass, amended;
    (8)             Do not pass;
    (9)     Do not pass, amended;
    
(9) (10)        Without recommendation;
    (11)     Without recommendation, amended;
    
(10) (12)        Defer to a day certain;
    (11) (13)        Refer to another committee;
    (14)            Refer to another committee, amended
    
(12) (15)        Amend;
    (16)            Approve or amend minutes; and
    
(13) (17)        Appoint a subcommittee.

7-27. Division of the question.
Any member may call for a division of the question. The chair shall divide the question if it contains questions so distinct that, one being taken away, the rest may stand as a separate proposition. A member may not call for the division of a bill.

7-28. Committee procedure - Remote electronic testimony.
During any regular or special session of the Legislature, a committee chair may, upon the unanimous consent of the members present, permit a person to appear from a remote site and give testimony before the committee by electronic audio/video audio or video means.

Amend Chapter 12 of the Joint Rules as follows:


12-3. Voting procedures. Questions shall be put in this form: "As many as favor the question, as stated, say 'Yea'; as many as are opposed to the question, as stated, 'Nay'." If the presiding officer doubts the result of a vote or if a division is called for, the members shall divide. Those in the affirmative shall rise from their seats and remain standing until counted. A vote of “aye” or “yes” shall be recorded as “yea” and a vote of “no” shall be recorded as “nay.”

Amend Chapter 15 of the Joint Rules as follows:

15-3. Notification of bill or resolution deferred to 36th or the 41st day. If the consideration of any bill or joint resolution which originated in one house shall be postponed in the other house to a day so distant that it will not be taken up again by the present session, the house of origin shall be immediately notified of such action.

    The joint rules and the rules of the Senate and House shall be printed in the House Journal.

Respectfully submitted,    Respectfully submitted,
G. Mark Mickelson        Brock Greenfield
Lee Qualm        R. Blake Curd
Spencer Hawley    Jason E. Frerichs
House Committee        Senate Committee

MOTIONS AND RESOLUTIONS

    SCR 1 Introduced by: Senators Bolin, Frerichs, Heinert, Kennedy, Killer, Kolbeck, Nelson, Nesiba, Netherton, Russell, Sutton, and Wiik and Representatives Holmes, Ahlers, Brunner, Campbell, Clark, Glanzer, Hawley, Heinemann, Jamison, Jensen (Kevin), Latterell, Lust, McCleerey, Ring, Schoenfish, Smith, Wiese, Willadsen, Wismer, and Zikmund

        A CONCURRENT RESOLUTION, Honoring the memory and accomplishments of President Grover Cleveland.

    WHEREAS, Grover Cleveland was the Mayor of Buffalo, New York, and the Governor of New York before becoming the President of the United States in 1885; and

    WHEREAS, President Cleveland is the only person who has served two, non-consecutive terms as President of the United States, and President Cleveland won the popular vote for president three consecutive times; and

    WHEREAS, President Cleveland became the first President of the United States to be married in the White House, taking Frances Folsom as his bride on June 2, 1886; and

    WHEREAS, President Cleveland was a person of unquestioned financial integrity and honesty during his terms in the White House; and

    WHEREAS, President Cleveland signed the bill authorizing the admission of the State of South Dakota into the union in 1889:

    NOW, THEREFORE, BE IT RESOLVED, by the Senate of the Ninety-Third Legislature of the State of South Dakota, the House of Representatives concurring therein, that the South Dakota Legislature honors the memory and accomplishments of President Grover Cleveland, and does hereby recognize his involvement with the admission of South Dakota into the union of states known as the United States of America.

    Was read the first time, the President Pro Tempore waived the referral to committee, and placed SCR 1 on the calendar of Wednesday, January 17th, the sixth legislative day.

FIRST READING OF SENATE BILLS AND JOINT RESOLUTIONS

    SB 72 Introduced by: Senators Novstrup, Frerichs, and Klumb and Representatives Kaiser, Bartels, Campbell, Chase, Dennert, Holmes, Johnson, Lake, McCleerey, Schaefer, Wismer, and Zikmund

    FOR AN ACT ENTITLED, An Act to revise certain provisions regarding historical license plates for motor vehicles.

    Was read the first time and referred to the Committee on Transportation.

    SB 73 Introduced by: Senators Stalzer, Bolin, Frerichs, Otten (Ernie), Russell, and Solano and Representatives Johnson, Chase, Clark, Duvall, Goodwin, Lesmeister, May, and Schaefer

    FOR AN ACT ENTITLED, An Act to authorize a vehicle dealer to lease space in the common area of a shopping mall for displaying new vehicles.

    Was read the first time and referred to the Committee on Commerce and Energy.

    SB 74 Introduced by: Senators Klumb, Bolin, Curd, Ewing, Frerichs, Greenfield (Brock), Jensen (Phil), Kolbeck, Langer, Monroe, Netherton, Rusch, Solano, Stalzer, Tidemann, Wiik, and Youngberg and Representatives Schoenfish, Ahlers, Carson, Haugaard, Holmes, Howard, Kaiser, Latterell, Mickelson, Qualm, Rhoden, and Steinhauer

    FOR AN ACT ENTITLED, An Act to create an exception to the minimum difference in age between adoptive parent and child.

    Was read the first time and referred to the Committee on Judiciary.


    SB 75 Introduced by: Senators Soholt, Haverly, Killer, Maher, Rusch, and Solano and Representatives Heinemann, Campbell, Clark, DiSanto, McCleerey, and Steinhauer

    FOR AN ACT ENTITLED, An Act to establish certain provisions regarding the dispensing of biological products.

    Was read the first time and referred to the Committee on Health and Human Services.

    SB 76 Introduced by: Senators Heinert, Frerichs, Greenfield (Brock), Kennedy, Killer, Langer, Maher, Nelson, and Nesiba and Representatives Ahlers, Bordeaux, Dennert, Hawley, Lesmeister, McCleerey, and Smith

    FOR AN ACT ENTITLED, An Act to authorize the use of tribal identification cards for the purpose of voter registration.

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

    SB 77 Introduced by: Senators Nesiba, Bolin, Frerichs, Heinert, Kennedy, Killer, and Otten (Ernie) and Representatives Reed, Ahlers, Campbell, McCleerey, Peterson (Kent), Willadsen, and Wismer

    FOR AN ACT ENTITLED, An Act to revise certain provisions regarding required campaign finance disclosure statements submitted by ballot question committees.

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

    SB 78 Introduced by: Senators Bolin, Klumb, Monroe, Solano, and Stalzer and Representatives Peterson (Sue), Barthel, Beal, Bordeaux, Brunner, Campbell, Clark, Holmes, Jensen (Kevin), Latterell, Rasmussen, Smith, Steinhauer, Stevens, Wiese, Willadsen, and Zikmund

    FOR AN ACT ENTITLED, An Act to revise the membership of the Board of Education Standards to include the chairs of the Senate and House committees on education.

    Was read the first time and referred to the Committee on Education.

SECOND READING OF CONSENT CALENDAR ITEMS

    SB 14: FOR AN ACT ENTITLED, An Act to revise certain references to the special highway fund in provisions regarding motor vehicle license fees distribution.

    Was read the second time.


    The question being "Shall SB 14 pass?"

    And the roll being called:

    Yeas 35, Nays 0, Excused 0, Absent 0

    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Jensen (Phil); Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Monroe; Nelson; Nesiba; Netherton; Novstrup; Otten (Ernie); Partridge; Peters; Rusch; Russell; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 15: FOR AN ACT ENTITLED, An Act to revise the composition of the state trunk highway system.

    Was read the second time.

    The question being "Shall SB 15 pass?"

    And the roll being called:

    Yeas 35, Nays 0, Excused 0, Absent 0

    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Jensen (Phil); Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Monroe; Nelson; Nesiba; Netherton; Novstrup; Otten (Ernie); Partridge; Peters; Rusch; Russell; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 16: FOR AN ACT ENTITLED, An Act to repeal certain curb ramp construction specifications for municipalities.

    Was read the second time.

    The question being "Shall SB 16 pass?"

    And the roll being called:


    Yeas 35, Nays 0, Excused 0, Absent 0

    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Jensen (Phil); Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Monroe; Nelson; Nesiba; Netherton; Novstrup; Otten (Ernie); Partridge; Peters; Rusch; Russell; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 22: FOR AN ACT ENTITLED, An Act to allow commercial driver license applicants three attempts to pass the commercial driver license examination.

    Was read the second time.

    The question being "Shall SB 22 pass?"

    And the roll being called:

    Yeas 35, Nays 0, Excused 0, Absent 0

    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Jensen (Phil); Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Monroe; Nelson; Nesiba; Netherton; Novstrup; Otten (Ernie); Partridge; Peters; Rusch; Russell; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 43: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the regulation of limited gaming in Deadwood, South Dakota.

    Was read the second time.

    The question being "Shall SB 43 pass?"

    And the roll being called:

    Yeas 35, Nays 0, Excused 0, Absent 0


    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Jensen (Phil); Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Monroe; Nelson; Nesiba; Netherton; Novstrup; Otten (Ernie); Partridge; Peters; Rusch; Russell; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 57: FOR AN ACT ENTITLED, An Act to revise certain references regarding the contractor's excise tax.

    Was read the second time.

    The question being "Shall SB 57 pass?"

    And the roll being called:

    Yeas 35, Nays 0, Excused 0, Absent 0

    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Jensen (Phil); Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Monroe; Nelson; Nesiba; Netherton; Novstrup; Otten (Ernie); Partridge; Peters; Rusch; Russell; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

SECOND READING OF SENATE BILLS AND JOINT RESOLUTIONS

    SB 21: FOR AN ACT ENTITLED, An Act to update references to certain federal motor carrier regulations.

    Was read the second time.

    The question being "Shall SB 21 pass?"

    And the roll being called:

    Yeas 29, Nays 6, Excused 0, Absent 0


    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Haverly; Heinert; Kennedy; Killer; Klumb; Kolbeck; Langer; Maher; Nesiba; Netherton; Novstrup; Otten (Ernie); Peters; Rusch; Soholt; Solano; Stalzer; Sutton; Tapio; Tidemann; White; Wiik; Youngberg

    Nays:
Greenfield (Brock); Jensen (Phil); Monroe; Nelson; Partridge; Russell

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 44: FOR AN ACT ENTITLED, An Act to establish a license for certain gaming equipment manufacturers and distributors and to establish a license fee.

    Was read the second time.

    The question being "Shall SB 44 pass?"

    And the roll being called:

    Yeas 28, Nays 7, Excused 0, Absent 0

    Yeas:
Bolin; Cammack; Cronin; Curd; Ewing; Frerichs; Greenfield (Brock); Haverly; Heinert; Kennedy; Killer; Kolbeck; Langer; Maher; Monroe; Nesiba; Novstrup; Otten (Ernie); Peters; Rusch; Soholt; Solano; Stalzer; Sutton; Tidemann; White; Wiik; Youngberg

    Nays:
Jensen (Phil); Klumb; Nelson; Netherton; Partridge; Russell; Tapio

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed and the title was agreed to.

    Sen. Novstrup moved that the Senate do now adjourn, which motion prevailed and at 2:33 p.m. the Senate adjourned.

Kay Johnson, Secretary


    Pursuant to the Joint-Select Committee Report found on page 10 of the Senate Journal, the following is Chief Justice David Gilbertson's State of the Judiciary Message:

STATE OF THE JUDICIARY MESSAGE
JANUARY 10, 2018
PIERRE, SOUTH DAKOTA
CHIEF JUSTICE DAVID GILBERTSON
SOUTH DAKOTA SUPREME COURT

    Governor Daugaard, Lieutenant Governor Michels, Speaker Mickelson, members of the Legislature, Constitutional Officers, my fellow Justices, Judges, Unified Judicial System (UJS) employees and all citizens of the State of South Dakota.

INTRODUCTION

    This is my 17th year as your Chief Justice. This opportunity for public service has allowed me to observe the operations of state government first-hand. The cooperation between the three branches of state government is one of the reasons state government works in South Dakota. Our constitutional tasks are limited by the tasks assigned to the other branches and the powers reserved to the people. However, we cooperate. This is a far cry from the gridlock and verbal attacks that we see elsewhere. I hope we do not fall into the category President Harry Truman observed concerning the political environment of Washington D.C. back when he was President: "If you want a friend in this town, buy a dog."

    Public support for our three branches of government depends on public education. Sadly only 38% of Americans in 2011 could name all three branches of government. That number declined to 26% today. Thirty-one percent could not even name a single branch of government.

    One frequently hears the phrase "the new normal." This phrase does not describe the programs and challenges undertaken by the UJS. Because events and conditions frequently change, very little remains "new" and our current situation is not "normal." Perhaps a more fitting slogan is the Boy Scouts' time-honored motto: "Be Prepared."

    We must not be overwhelmed by the increasing pace of change. We must always keep our eye on our constitutional tasks. As Warren Buffett noted: "Someone is sitting in the shade today because someone planted a tree a long time ago."

THE APPELLATE PROCESS

    I suspect that when people think of the South Dakota Supreme Court, they think of written appellate decisions on cases that come before us. It is perhaps helpful to describe how we undertake deciding cases.

    When a case is appealed to us the circuit court proceedings are completed. We do not retry the case; we simply review the evidence and legal claims that were made in circuit

court. We only answer issues that are brought to us on appeal and that were originally presented to the circuit court. We do not expand the scope of the case beyond that.

    No matter how complex the issues are on appeal we are simply trying to answer two basic questions. The first is whether a mistake was made during the circuit court proceedings. If not, we affirm. If a mistake was made we decide a second question. Was that mistake so serious that it affected the fairness or the outcome of the trial? If not, we still affirm. Under our judicial system, you are entitled to a fair trial, not a perfect one.

    If a case is reversed because the mistake did affect the fairness or the outcome of the trial, a general perception is that our decision makes the loser the winner and the winner the loser. In most cases where we reverse a decision, however, the case is sent back to the circuit court for retrial without the mistake. Thus, a fair trial is ultimately held.

    We make decisions by majority rule. Since there are five Justices on the Supreme Court, three must agree on the resolution of a case for that to become the opinion of the Court. Should a Justice feel it necessary to not participate in an individual case, I appoint a circuit judge or a retired Justice to sit on that case. This avoids the chance for a tie and majority rule is preserved.

    We are bound by the strict rules of the appellate process. The Court must follow the laws passed by this Legislature and Congress. We do not write laws; we only interpret what they mean. We are also bound by United States Supreme Court decisions on matters of federal law and the interpretation of the United States Constitution. If there is a prior decision by the South Dakota Supreme Court on the issue before us, in most instances we follow that decision.

    We do not decide cases based on our personal preferences. If we did so, we would become a Court of subjective opinions. Under our Constitution that is not acceptable. The South Dakota Supreme Court is an appellate court that decides the cases based on the facts of the case and our interpretation of the law. A critic of a United States Supreme Court decision 175 years ago noted: "Judicial tyranny is hard enough to resist under any circumstances for it comes in the guise of impartiality and with the prestige of fairness." We strive to avoid that. Our judicial system provides continuity and fairness in the appeal process.

DRUG AND ALCOHOL COURTS

    A new wave of evil has descended upon South Dakota's citizens. This evil is the explosion of meth and prescription drugs. The evil is compounded by the introduction of the deadly drug, fentanyl, into some existing drugs. In some areas of this state the ever increasing horrors of meth addiction are being outstripped by the increasing addiction of prescription drugs. This addiction evil continues despite the efforts by law enforcement and the court system.

    The task of helping our drug and alcohol program participants succeed has become literally a matter of life or death. For the second year in a row, we lost a program participant to a drug overdose. It is a bitter fact that while we will succeed with a good majority of our

program participants, we will not succeed with all of them. In past years the consequences of the failure of a program participant were continued addiction and a trip to the penitentiary. With the introduction of these more powerful and lethal illegal drugs, the consequences are deadlier.

    Nationally, the drug epidemic is at a crisis level. Opioid addiction is overwhelming the public health, child welfare, and justice systems of many states. For example Montgomery County, Ohio which includes the city of Dayton experienced 371 deaths in 2016 due to opioid abuse. This year, Montgomery County is on target to exceed 800 deaths. Nationwide, 175 Americans die each day from this curse.

    While South Dakota's fatalities are much lower in number, they still more than doubled between 2007 to 2015. The statistics for opioid abuse are somewhat surprising to me. This is not exclusively a youthful addiction. The South Dakota Department of Health reports that a majority of people addicted to opioids are between 40 and 64 years old. The second highest bracket of addiction is the 25-39 age group. Eighty percent of the cases involve Caucasians and 57% are women.

    When we started the drug court pilot program in 2008 we never dreamed that the evolution of society would present us with such monumental problems. We certainly had a drug problem in those days, but we considered it "manageable." Now it is everywhere and despite our best efforts we once again are playing "catch-up." As President Franklin D. Roosevelt observed: "There are many ways of going forward, but only one way of standing still."

    We have a statewide network of drug courts and alcohol courts. Wanting something to work and having it actually work are separate concepts. Our programs are actually working because of the dedicated people who make up the treatment teams for each court. The programs actually work because of the training and dedication that each team member is willing to undertake.

    In FY 2015 we served 314 participants. In two years that number significantly increased. In FY 2017 we served 462 participants. Ninety-six participants have graduated from our programs. What is their future upon graduation? Eighty-two percent of the graduates do not reoffend. That is higher than the national average of 75%. It is substantially higher than the rate for people paroled from the penitentiary. That is around 40%.

    I never tire of attending drug and alcohol court graduations. The compelling life story each graduate has is an example of what can ultimately go right in this society. One graduate said, "I have a completely different work ethic. I show up on time and make sure the job task is done right. I don't just hurry through it to get it done." In these programs we stress and require employment, but this statement by a graduate summarizes what it means. In South Dakota our unemployment rate is low enough that most participants can get a job. To keep a job and recognize the importance of a work ethic _ that is change.

    This work ethic is directly tied to earning capacity. Between January 1, 2017 and

June 30, 2017, the 462 participants earned $1,537,405 in wages. That calculates to an annual figure of $3,074,810 to support them and their families. That is a far cry from spending in the neighborhood of $25,000 per year of taxpayers' dollars to house each of these 462 participants in the penitentiary.

    The cost savings do not end there. Our drug and alcohol court participants are parents of 1219 children, who, if their parents were in the penitentiary instead of our programs, would be the wards of Department of Social Services at $10,000 per-year, per-child. That number is up from 707 children last year. Thus, this past year, we saved taxpayers $12,190,000 in child support costs alone.

    Another cost saving from these diversion programs is in health care. The Avera Health System estimates that South Dakota hospitals annually treat 3980 people in emergency rooms due to drug overdoses and their complications. Since virtually none of these people have insurance or the ability to pay for the emergency medical services, it annually costs County Poor Relief, Medicaid, and the Department of Corrections about $2,790,000. An additional $3,580,000 is never paid by or on behalf of the drug-addicted patient so the cost is ultimately passed back to the other paying customers. In a perfect world, the hospitals would rather focus on other necessary medical needs of patients. Other worthwhile uses for this $6,370,000 abound.

    A circuit judge who has been active in these programs since the beginning defined the difference between drug addicts and alcoholics. Although alcoholics are addicted to alcohol, they generally maintain a home and some form of employment. Drug addicts are "couch potatoes." They generally have no job, no home, and nothing more than the clothes on their backs. This is a crucial point in the ability of the UJS to deal with drug addicts in the drug court program. Currently our program is only out-patient. To get into the drug court program a drug addict must have a home and a job. Sadly, the worst of the worst have neither. We cannot expect those with these addictions to work full time and move successfully through the drug court program if they are living under a bridge or in a cardboard box. The reality is that they go to the penitentiary because we cannot take them into our programs. I think it is time to develop a concept that will incorporate an in-patient component into our program. It makes little sense to treat the addicted who have a home and, like the priest and the Levite in the parable of the Good Samaritan, pass by on the other side of the road and ignore the person laying in the ditch. As former Chief Justice Warren Burger noted, "concepts of justice must have hands and feet."

    In administering drug and alcohol courts, the Unified Judicial System has followed national standards and learned from other states' programs. However, when dealing with uncontrolled addictions and unanticipated situations, there is a bit of the philosophy of boxing champion, Mike Tyson: "Everybody has a plan until they get punched in the mouth."

FEMALE JUSTICES AND THE COURT

    South Dakota's population is both male and female and so is the composition of the South Dakota Supreme Court. In the late 1970's, Circuit Judge Mildred Ramynke of Peever was the first woman to sit on a Supreme Court case by designation. In 2002, Justice

Judith Meierhenry was the first woman appointed to be a permanent Justice of the Court.

    At least half of the population of South Dakota is female. On April 25, 2017, for the first time, three of the five designated Justices on an individual case were female. Justice Lori Wilbur, Justice Janine Kern, and Retired Justice Judith Meierhenry sat on a case that was orally argued before the court. This was a historic day for the Court.

HOPE PROGRAM EXPANSION

    We continue to expand our HOPE program. HOPE is a form of intensive probation. It works well in our more rural counties that do not have ready access to treatment services required for a successful drug court or alcohol court.

    Under the leadership of Presiding Judge Scott Myren we are expanding into additional counties. This is important. I have yet to talk to a rural sheriff who is not facing an increasing amount of drug traffic in his or her county.

    Addiction is an evil that plays no favorites. It is an equal opportunity disease that affects persons of all ages, sexes, and races. Several of our HOPE programs are in counties that border reservations. They have achieved impressive results with both Native American and non-Native American clients in Charles Mix, Walworth, and Tripp counties.

VETERANS COURTS

    Veterans Courts continue to be successful in Codington County and Minnehaha County. The Minnehaha County program is under the direction of Judge Mark Salter, himself a veteran. Currently the program only takes veterans who face felony charges. However, serious consideration is being given to increasing the scope of the program to include those charged with high grade misdemeanors. If undertaken, this could double the size of the program. Further consideration is also being given to taking veterans from other counties in the general vicinity of Minnehaha County.     

    Part of the program's success is due to the active participation from the Veterans Administration in Sioux Falls. A VA employee sits on the team that oversees the program.

    There is a great need for a Veterans Court in the Rapid City area. We currently have 98 veterans on felony probation there. To see if a Veterans Court would work in that area we started a diversion program called a Veterans Protocol that can supervise eight veterans under a specially trained court services officer. It works well. If funding were available we could rapidly expand the Veterans Protocol into a Veterans Court serving a significant number of those 98 veterans. President Abraham Lincoln commented: "You cannot escape the responsibility of tomorrow by evading it today."

MENTAL ILLNESS AND THE COURTS

    Last year this Legislature considered the Mental Health Task Force's report and passed a comprehensive bill to deal with mental health issues and the courts. The law went into effect July 1, 2017. It will significantly improve how our criminal judicial system treats

those who come into the system with an underlying issue of mental illness. By broadening the definition of those mental health professionals who can do competency evaluations, the logjam of people sitting in jail waiting for an evaluation before entering a plea will be significantly lessened or hopefully go away completely. It also will reduce costs of incarceration to taxpayers who ultimately pay for the county jails and their staffing. Speeding up the system of justice benefits all involved. Since South Dakota ranks second from the bottom in the nation in the mental health professional provider to population ratio, we have to maximize the wise use of what resources we have.

    The proposed pilot project for a mental health court in Pennington County did not pass last year. While it was not viewed as unnecessary or ill-advised, the dollars were simply not there to fund it. Hopefully funding will be available in the near future to undertake this project. In other states, these types of programs have proved highly successful and save significant taxpayer dollars. It has certain common elements with our drug court and alcohol court programs. All three seek to deal with the root problem that got the individual into the criminal justice system in the first place. We need to ask, "What happened to you?" and not "What's wrong with you?"

COURTHOUSE SECURITY

    The 2017 Legislature authorized a one-time appropriation to address courthouse security needs throughout the state. Counties were eligible for up to a 50% match for projects to help provide enhancements to safety and security in courthouses across the state. I am pleased to report that 26 counties were awarded these grants totaling approximately $295,000. Examples of projects that were funded through these dollars included metal detectors, bullet resistant benches, locking systems, security doors, video surveillance systems, panic alarms, and bullet resistant glass. Improving courthouse security not only benefits those who work in such facilities but also the many members of the public who transact business in them.

RURAL ATTORNEY PROGRAM

    The Rural Attorney Program continues to grow and expand. We now have contracts signed with 20 counties. We hope to expand that number in the future. The attorneys we have placed are enjoying the rural counties they now live in and serve.

    Each year I host a one-day seminar for all the program participants. In visiting with them it appears they are satisfied with their decision to locate to a rural setting.

    Last year this Legislature expanded this program by authorizing the placement of attorneys in smaller municipalities. Municipalities with a population under 3500 are eligible to participate. This expansion went into effect July 1, 2017 and we are in the process of informing municipalities of the opportunities and benefits of the Rural Attorney Program.

PROBATION SERVICES

    Probation is a form of judicial supervision for adult convicted felons and for juveniles. It quietly functions in an efficient manner. There are more people on felony adult probation

in South Dakota than in penitentiaries, the county jails, and the drug and alcohol programs combined.

    While penitentiary, county jail, and other alternative sentencing programs' populations have substantially risen, the increase in the number of people on felony probation is measured in the 1000s:

             FISCAL YEAR                    CASES OF ADULT
                ENDING                FELONY PROBATIONERS
                FY 2011                             5130
                FY 2012                             5149
                FY 2013                             5892
                FY 2014                             6893
                FY 2015                             8006
                FY 2016                             8634
                FY 2017                             9078

    It is fair to ask what happens to these probationers. Last year 84% remained in the program and 1862 people were successfully discharged. Of equal importance is the performance of these probationers once they are discharged. In FY 2017, 83% did not reoffend in the three-year period following their discharge. Thus, the system does not see them again.

    As with every state program, cost is a significant consideration. If the 9078 cases committed by felons in FY 2017 were placed in the penitentiary or alternative sentencing programs those institutions and programs would be overwhelmed. The state could not afford the increased cost. Yet, if those 9078 cases committed by felons continue on probation, they are supervised for a cost of $3 per-day, per-probationer. This is a taxpayer's bargain.

    Not everyone qualifies for probation nor should they. Dangerous felons, career criminals, sex offenders and the like belong in a penitentiary. Those seriously addicted to drugs or alcohol belong in our drug and alcohol courts and other treatment programs.

THE SOUTH DAKOTA BAR EXAM

    Recently there has been significant public discussion about the passage rates of the South Dakota bar exam. When the passage rate was 80 to 90% virtually no one noticed except the law school graduates who sat for the exam. Nationally the passage rate has significantly declined and South Dakota is no exception. Both the passage rates for the graduates of the University of South Dakota School of Law and law school graduates from out-of-state are down significantly. Although there has been a lot written on the issue and more than a little finger pointing, no single cause for the decline has been isolated. It is likely a combination of a number of factors.

    I do not have a single magic solution. The Supreme Court is willing to review the situation with other key players in the process such as the law school, the law school faculty, the State Bar, and the law students. Our ultimate goal is to provide a quality lawyer who

can practice law either in South Dakota or elsewhere and provide professional legal services to his or her clients.

    The South Dakota Board of Bar Examiners has remained stable in its membership. Several board members remain from the "glory days" of the 90% passage rates. Their approach to grading the bar exam has not changed. All of our neighboring states have also experienced a drop in passage rates. To me, that shows the South Dakota Bar Examiners are continuing to function as gatekeepers, allowing only those who pass the rigorous exam to exercise the power granted to attorneys. Were South Dakota to remain in the highest category of passage when all the neighboring states experienced a significant decline in passing rates, it would likely signal that the bar exam in this state was not fulfilling its intended function -- the protection of the public by only allowing those who are academically fit and possess good moral character to assist the public as attorneys. The Supreme Court ultimately oversees the process and is pleased with the Board's work.

THE UNIVERSITY OF SOUTH DAKOTA
SCHOOL OF LAW

    South Dakota has always had only one law school that is located on the campus of the University of South Dakota at Vermillion. The Executive Director of the State Bar estimates that the University of South Dakota School of Law has produced over 90% of South Dakota's attorneys and judges.

    The University of South Dakota established a committee under the chair of House Speaker Mark Mickelson to study the future of the law school. Monumental changes in legal education have taken place not only in South Dakota, but around the nation. Rows of leather bound law books that were the bread and butter of a legal education and a lawyer's practice are now antiques. Most legal research is now done on-line, on a computer.

    I think it is clear that the citizens of South Dakota want and need an in-state law school. Where it should be located and how it should function are important questions for study and discussion.

    Ultimately the majority of the committee voted to recommend that the law school remain in Vermillion, create a physical presence and program in Sioux Falls, and increase revenue for student scholarships and the law school.

    Several individuals have asked me if the location of the law school will affect the success of the Rural Attorney Program. I have been involved with every rural attorney placement and have spoken to most of those who participate in the program. In my opinion the Rural Attorney Program will not be negatively or positively affected by the location of the law school.

SUPREME COURT LAW LIBRARY RESTORATION

    Last year I was pleased to report to you that the restoration of the Supreme Court Law Library was well underway. Substantial progress has been made during the past 12 months and it is nearing completion. I have yet to escort a person into this set of rooms

that is not struck by the beauty of the restoration and the original beauty of the facility. These are the last public rooms in the Capitol to be restored and it was certainly well worth waiting for. I invite you to see the project for yourself. You will be duly impressed. While it is, in large respect, a return to the 1911 decor, it still is a modern fully-functioning law library with the latest computer technology for legal research.

JUSTICE LORI WILBUR

    This past June, Justice Lori Wilbur retired. She left the bench with an impressive record. She is the only person I know who held every judicial position in South Dakota from Supreme Court law clerk, to part-time Magistrate Judge, to full-time Magistrate Judge, to Circuit Judge, to Presiding Circuit Judge, to Justice of the Supreme Court. She did them all with grace and expertise.

    She provided major contributions to this Court's case law by the opinions she authored and participated in deciding. Many were complex.

    Justice Wilbur was a driving force in the growth and expansion of drug courts and alcohol courts. She started the first alcohol court in South Dakota. When I told her that the UJS had no money to fund it, she simply smiled and went out and found her own funding. That program continues to thrive today. She also made personal visits to every drug and alcohol court in South Dakota. If a program was having a few bumps in the road getting going or was experiencing difficulties, she was always willing to involve herself to improve the situation.

    Justice Wilbur left the UJS a better place than she found it.

JUSTICE STEVEN JENSEN

    In September 2017 Governor Daugaard appointed Presiding Judge Steven Jensen to fill the vacancy on the Supreme Court created when Justice Wilbur retired. Justice Jensen had been a circuit judge in the First Judicial Circuit since 2003. He became the presiding judge for that circuit in 2011. Besides his normal judicial and administrative duties, he implemented drug and alcohol courts in his circuit and contributed to juvenile justice reform and UJS technological advances.

    His tenure on the bench has earned him respect on a statewide basis. The importance of his selection is underscored by the fact that since we became a state in 1889, only 50 people have served as Justices on the South Dakota Supreme Court.

JUDICIAL TURNOVER

    We did not just welcome a new Justice to the UJS this past year. We experienced a tsunami of judicial retirements. In one year, 6 of our 43 circuit judges retired from that position. The governor has named replacements or is in the process of doing so. We also had 4 of our 15 magistrate judges retire. They have been replaced.

    We were able to accommodate the departures through the use of retired judges who

agreed to come back as "temp help" where needed. Sitting judges juggled schedules and some of the retiring judges agreed to stay and finish their cases after their official retirement date. Thus, we did not experience a backlog of cases.

    In the UJS, judicial turnover is to be expected. That is how the current Justices and judges got their judicial positions. We hate to lose the years of judicial experience, but we also welcome new blood.

CONCLUSION

    Near the end of the titanic Civil War, President Abraham Lincoln pondered if he controlled events as President of the United States or events controlled him. Every person who has served in public office has faced that question. However, he also mused that you cannot escape the responsibility of tomorrow by evading it today. I believe our actions as public servants are not currently controlled by events and we are able to move forward to address the public issues that need to be addressed. That is an on-going process.

    Those of us in the UJS seek to improve the justice system and the services it delivers to the public. As far as the judicial function in South Dakota, today's message should be evidence that impartiality does not equate with indifference. There is nothing new with this concept. Over three thousand years ago the Prophet Isaiah declared, "Maintain justice, and do what is right."

Respectfully Submitted,
David Gilbertson
Chief Justice