Committee: House Education

Wednesday, February 13, 2019

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Brunner
P    Deutsch
E    Johns
P    Latterell
P    Marty
P    Olson
P    Randolph
P    Rasmussen
P    Reimer
P    Steele
P    Wiese
E    Healy
P    Ring
P    Glanzer, Vice-Chair
P    Greenfield (Lana), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Lana Greenfield.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 11, 2019

Moved by:    Randolph
Second by:    Brunner
Action:    Prevailed by voice vote.

    HB 1139: repeal provisions regarding maximum taxes levied by a school district for capital outlay.

Proponents:    Representative Spencer Gosch

        Representative Kyle Schoenfish
        Trent Osborne, Ipswich Public School
        Justin Davis, Ipswich High School
        ReEtta Sieh, Leola School District (Handout 1)
        Bev Myer, Leola School District
        Representative John Lake
        Jennifer Lowry, Tea School District
        Wade Pogany, Associated School Boards of South Dakota
        Henry Eggert, Eureka School District
        Dianna Miller, Large School Group
        Rob L. Monson, School Administrators of South Dakota
        Hector Serna, Bowdle School District
Opponents:    Matt Flett, Department of Education
        Michael Held, South Dakota Farm Bureau Federation
        Nathan Sanderson, South Dakota Retailers Association
        David Owen, South Dakota Chamber of Commerce & Industry
        Florence Thompson, self, Caputa, South Dakota
        Brenda Forman, South Dakota Cattlemen's Association
        Grace Beck, South Dakota Corn Growers Association

MOTION: AMEND HB 1139

On page 2, after line 3 of the printed bill, insert:

"
Section 2, That § 13-16-7 be amended to read:

13-16-7. The school board of any school district of this state may at the board's discretion authorize an annual levy of a tax not to exceed three dollars per thousand dollars of taxable valuation on the taxable valuation of the district for the capital outlay fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution, lease-purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority. Taxes collected pursuant to the levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.

The total amount of revenue payable from the levy provided in this section may not increase annually by more than the lesser of three percent or the index factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been generated from the taxes payable in 2016. After applying the index factor, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-31.4, only if assessed the same as property of equal value. A school district may increase the revenue the district receives from taxes on real property above the limit provided by this section for taxes levied to pay the principal, interest, and redemption charges on any bonds issued after January 1, 2009, which are subject to referendum, scheduled payment increases on bonds and for a levy directed by the order of a court for the purpose of paying a judgment against the school district. Any school district created or reorganized after January 1, 2016, is exempt from the limitation provided by this section for a period of two years immediately following the district's creation.

Moved by:    Brunner
Second by:    Latterell
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1139 AS AMENDED

Moved by:    Brunner
Second by:    Latterell
Action:    Prevailed by roll call vote. (11-3-1-0)

Voting Yes:    Brunner, Deutsch, Latterell, Marty, Olson, Randolph, Steele, Healy, Ring, Glanzer, Greenfield (Lana)

Voting No:    Rasmussen, Reimer, Wiese

Excused:    Johns

    HB 1149: provide an appropriation for the Native American achievement schools grant program.

Proponents:    Representative Shawn Bordeaux
        Sage FastDog, self, Mission

        THE CHAIR DEFERRED HB 1149 UNTIL FEBRUARY 20, 2019

MOTION:    ADJOURN

Moved by:    Randolph
Second by:    Steele
Action:    Prevailed by voice vote.

Sharon Johnson

____________________________

Committee Secretary

Lana Greenfield, Chair

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