94th Legislative Session _ 2019

Committee: Senate Commerce and Energy
Thursday, February 14, 2019

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Kennedy
P    Langer
P    Monroe
E    Nelson
P    Novstrup
P    Schoenbeck, Vice-Chair
P    Stalzer, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Stalzer.

The President Pro tem has appointed a new member of the Senate Commerce and Energy Committee to replace Senator Curd on Thursday February 14. Effective for one day, February 14, Senator Langer will replace Senator Curd. This change is an attempt to avoid a quorum issue due to Senator Curd not being available for the meeting.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 12

Moved by:    Kennedy
Second by:    Schoenbeck
Action:    Prevailed by voice vote.

MOTION:    SENATE ADVISE AND CONSENT TO THE APPOINTMENT OF JOSEPH P. COSTELLO OF LINCOLN COUNTY, SIOUX FALLS, SOUTH DAKOTA, TO THE BOARD OF ECONOMIC DEVELOPMENT

Action:    Withdrawn.

John Calvin has withdrawn his appointment to the Board of Economic Development

MOTION:    SENATE ADVISE AND CONSENT TO THE REAPPOINTMENT OF DOUGLAS J. HAJEK OF MINNEHAHA COUNTY, SIOUX FALLS, SOUTH DAKOTA, TO THE

SOUTH DAKOTA BUILDING AUTHORITY

Moved by:    Kennedy
Second by:    Schoenbeck
Action:    Prevailed by roll call vote. (6-0-1-0)

Voting Yes:    Kennedy, Langer, Monroe, Novstrup, Schoenbeck, Stalzer

Excused:    Nelson

Proponents for Douglas Hajek:
Senator Deb Soholt
Don Templeton, SD Building Authority

MOTION:    PLACE REAPPOINTMENT ON CONSENT CALENDAR

Moved by:    Schoenbeck
Second by:    Langer
Action:    Prevailed by voice vote.

MOTION:    SENATE ADVISE AND CONSENT TO THE APPOINTMENT OF DAVID WHEELER OF BEADLE COUNTY, HURON, SOUTH DAKOTA, TO THE SOUTH DAKOTA LOTTERY COMMISSION

Moved by:    Schoenbeck
Second by:    Langer
Action:    Prevailed by roll call vote. (6-0-1-0)

Voting Yes:    Kennedy, Langer, Monroe, Novstrup, Schoenbeck, Stalzer

Excused:    Nelson

Proponents for David Wheeler:
Norm Lingle, SD Lottery

    SB 130: create an on-sale surcharge license.

Presented by:    Senator Ryan Maher

MOTION:    AMEND SB 130

130ya

    On the printed bill, delete everything after the enacting clause and insert:
"    Section 1. That chapter 35-4 be amended by adding a NEW SECTION to read:

    A municipality or county may issue an on-sale surcharge license. Any applicant for an on-sale surcharge license shall submit an application to the governing body of the municipality in which the applicant intends to operate, or if outside the corporate limits of a municipality, to the governing body of the county in which the applicant intends to operate. The applicant shall submit the fee required under § 35-4-2 with the application. The governing body of a municipality or county may approve an application for an on-sale surcharge license if the municipality or county considers the applicant suitable and the proposed location is suitable.

    Section 2. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license may only sell alcoholic beverages on the premises where any of the following is carried on:

            (1)    The keeping of a hotel or motel;
            (2)    The operation of a restaurant; or
            (3)    The operation of any other business the governing body considers suitable.

    Section 3. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license shall charge a surcharge fee of one dollar per fluid ounce of distilled spirits dispensed or served on the premises where the on-sale licensee is authorized to operate.

    Section 4. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license may sell any distilled spirit for consumption on the premises of a business where the on-sale surcharge licensee is authorized to operate. The sale of distilled spirits may not begin prior to 10:00 a.m. of each day, and may continue until 10 p.m. on Sunday through Thursday, and until 11 p.m. on Friday and Saturday.

    Section 5. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license may not sell or transfer the on-sale surcharge license.

    Section 6. That chapter 35-4 be amended by adding a NEW SECTION to read:

    Notwithstanding §§ 35-4-11, 35-4-11.1, and 35-4-11.12, the governing body of a municipality or county may not limit the number of on-sale surcharge licenses to be issued within the municipality or county.

    Section 7. That § 35-4-2 be amended to read:

    35-4-2. The classes of licenses, with the fee of each class, are as follows:


            (1)    Repealed by SL 2018, ch 223, § 13;
            (2)    Wholesalers of alcoholic beverages--five thousand dollars;
            (3)    Off-sale--not less than three hundred dollars. The renewal fee for the license may not exceed five hundred dollars;
            (4)    On-sale--not less than one dollar for each person residing within the municipality as measured by the last preceding federal census. The renewal fee for the license may not exceed fifteen hundred dollars;
            (5)    Off-sale licenses issued to municipalities under local option--not less than two hundred fifty dollars;
            (6)    On-sale licenses issued outside municipalities--not less than the amount the nearest municipality to the applicant is charging for a like license. The renewal fee shall be the same as is charged for a like license in the nearest municipality. If the municipality to which the applicant is nearest holds an on-sale license, pursuant to § 35-3-13 and does not charge a specified fee, then the fee shall be the minimum amount that could be charged as if the municipality had not been authorized to obtain on-sale licenses pursuant to § 35-3-13. The renewal fee shall be the same as could be charged for a like license in the nearest municipality;
            (7)    Repealed by SL 2018, ch 213, § 46;
            (8)    Transportation companies--twenty-five dollars;
            (9)    Carrier--one hundred dollars. The fee licenses all conveyances the licensee operates in this state;
            (10)    Repealed by SL 2018, ch 213, § 46;
            (11)    On-sale dealers at publicly operated airports--two hundred fifty dollars;
            (12)    Wine and cider retailers, being both package dealers and on-sale dealers--five hundred dollars;
            (13)    Convention facility on-sale--not less than one dollar for each person residing within the municipality as measured by the last preceding federal census. The renewal fee for the license may not exceed fifteen hundred dollars;
            (14)    Repealed by SL 2018, ch 224, § 11;
            (15)    Wholesalers of malt beverages--four hundred dollars;
            (16)    Malt beverage and wine produced by a farm winery licensee, being both package dealers and on-sale dealers--three hundred dollars;
            (17)    Repealed by SL 2018, ch 213, § 46;
            (17A)    Repealed by SL 2018, ch 213, § 46;
            (18)    Repealed by SL 2018, ch 213, § 46;
            (19)    Repealed by SL 2018, ch 213, § 46 and ch 222, § 11;
            (20)    Repealed by SL 2018, ch 213, § 46;
            (21)    Retail on premises manufacturer--two hundred fifty dollars;
            (22)    Repealed by SL 2018, ch 223, § 13; and
            (23)    Off-sale delivery--one hundred fifty dollars; and
            (24)    On-sale surcharge license_two thousand dollars. The annual renewal fee shall be two thousand dollars.

    Section 8. That chapter 35-4 be amended by adding a NEW SECTION to read:
    The surcharge fee under section 3 of this Act shall be paid to the Department of Revenue to be used solely to reimburse the Department of Revenue for collection costs and to make payments to the owners of subdivision 35-4-2(4) and 35-4-2(6) on-sale licenses who acquired the on-sale license before July 1, 2019, and paid fair market value for the on-sale license. After the Department of Revenue is reimbursed for costs associated with collecting payments made pursuant to section 3 the surcharge payments shall be paid to the owners of subdivision 35-4-2(4) and 35-4-2(6) on-sale licenses in a manner determined by the Department of Revenue.

    Section 9. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The secretary shall promulgate rules, pursuant to chapter 1-26 to:

            (1)    Establish procedures for collecting the surcharge fees made under section 3 of this Act; and
            (2)    Establish procedures and criteria for distributing surcharge payments to owners of subdivision 35-4-2(4) and 35-4-2(6) on-sale licenses.

    Section 10. That chapter 35-4 be amended by adding a NEW SECTION to read:

    If, in the ten-year period beginning with January 1, 2021, and ending January 1, 2031, an owner is certified as a qualified holder of an on-sale license issued pursuant to 35-4-2(4) or 35-4-2(6), and the owner sells or transfers any part of the owner's interest in the on-sale license to another person, the owner forfeits that portion of the owner's future surcharge payments that is equal to the amount of consideration received by the owner from the sale or transfer of the on-sale license."


Moved by:    Schoenbeck
Second by:    Langer
Action:    Prevailed by voice vote.

        THE CHAIR DEFERRED SB 130

    SB 64: require certain wind energy facilities to include aircraft detection lighting systems.

Presented by:    Senator Brock Greenfield
Proponents:    Representative Caleb Finck

MOTION:    AMEND SB 64

64wb

    Delete the previously adopted amendment (64wa).


Moved by:    Kennedy
Second by:    Novstrup
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 64

Moved by:    Monroe
Second by:    Kennedy
Action:    Prevailed by roll call vote. (6-0-1-0)

Voting Yes:    Kennedy, Langer, Monroe, Novstrup, Schoenbeck, Stalzer

Excused:    Nelson

    SB 135: modify the requirements for county or municipality disapproval of an off-sale license applicant to sell alcoholic beverages.

Presented by:    Senator Ryan Maher
Opponents:    Matt Walz, SD alcohol Policy Alliance Sioux Falls

MOTION:    AMEND SB 135

135ya

    On page 1, line 5, of the printed bill, delete "county or" and after "municipality" insert "with a population over one thousand and located within the boundaries of an Indian reservation".

    On page 1, line 6, delete "or county".


Moved by:    Langer
Second by:    Schoenbeck
Action:    Prevailed by voice vote.

MOTION:    DEFER SB 135 TO THE 41ST LEGISLATIVE DAY

Moved by:    Schoenbeck
Second by:    Kennedy
Action:    Prevailed by roll call vote. (4-2-1-0)

Voting Yes:    Kennedy, Langer, Schoenbeck, Stalzer

Voting No:    Monroe, Novstrup

Excused:    Nelson

    SB 184: revise certain provisions regarding certification of utility permits.

Presented by:    Senator Red Dawn Foster
Proponents:    Bruce Ellison, self Rapid City
        Rebecca M. Terk, Dakota Rural Action
        John Harter,self, Winner
        Alex Romero Fredrick, self, Winner
Opponents:    Gary Hanson, Public Utilities Commission
        Brett Koenecke, South Dakota Electric Utility Companies

MOTION:    AMEND SB 184

184ka

    On page 1, line 10, of the printed bill, before "conditions" insert "permit".


Moved by:    Schoenbeck
Second by:    Langer
Action:    Prevailed by voice vote.

MOTION:    DEFER SB 184 TO THE 41ST LEGISLATIVE DAY

Moved by:    Schoenbeck
Second by:    Langer
Action:    Prevailed by roll call vote. (5-0-2-0)

Voting Yes:    Langer, Monroe, Novstrup, Schoenbeck, Stalzer

Excused:    Kennedy, Nelson

MOTION:    ADJOURN

Moved by:    Langer
Second by:    Schoenbeck
Action:    Prevailed by voice vote.

Mary Beth Fravel

____________________________

Committee Secretary
Jim Stalzer, Chair

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