JOURNAL OF THE HOUSE

EIGHTY-FOURTH SESSION



FOURTEENTH DAY



STATE OF SOUTH DAKOTA
House of Representatives, Pierre
Monday, February 2, 2009

     The House convened at 2:00 p.m., pursuant to adjournment, the Speaker presiding.

     The prayer was offered by the Chaplain, Pastor Wade Mobley, followed by the Pledge of Allegiance led by House pages Scott Athey and Whitney Jencks.

     Roll Call: All members present except Rep. Faehn who was 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 thirtheenth 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,
Timothy A. Rave, Chair

     Which motion prevailed.
REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1099 and returns the same with the recommendation that said bill do pass.

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1124 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB 1060 and returns the same with the recommendation that said bill be amended as follows:

1060sb

     On page 1 of the printed bill, delete lines 4 to 15, inclusive, and insert:

"      Section 1. That § 54-14-12 be amended to read as follows:

     54-14-12.   Terms used in this chapter mean:

             (1)      "Depository institution," the same meaning as provided in 12 U.S.C. §  1813(c) as of January 1, 2009, and includes any credit union;

             (2)     "Director," the director of the Division of Banking of the Department of Revenue and Regulation;

             (2) (3)      "Division," the Division of Banking of the Department of Revenue and Regulation;

             (4)    "Federal banking agencies," the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation;

             (5)    "Immediate family member," a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchildren, stepsibling, and adoptive relationship;

             (6)    "Individual," a natural person;

             (3) (7)      "Licensee," the person holding a license provided by this chapter;

             (4) (8)      "Mortgage lender," any person who, for valuable consideration, originates, sells, or services mortgages, or holds himself, herself, or itself out as a person who, for valuable consideration, originates, sells, or services mortgages, other than those exempt pursuant to § 54-14-21;

             (5) (9)      "Mortgage broker," any person who , for compensation or gain, acts as an intermediary between borrower and lender to assist a person in obtaining or applying to obtain a mortgage loan or holds himself, herself, or itself out as being able to assist a person in obtaining or applying to obtain a mortgage loan acts as a mortgage loan originator and has not less than a ten percent interest in a mortgage brokerage ;

             (5A) (10)      "Mortgage brokerage," any person engaged in placing mortgage loans with investors for a fee, but does not service such loans;

             (6)      "Mortgage brokering activities," for compensation, either directly or indirectly, assisting or offering to assist in the preparation of an application for a mortgage loan on behalf of a borrower, or negotiating or offering to negotiate the terms or conditions of a mortgage loan with any person making mortgage loans;

             (7)      "Mortgage loan originator," any person acting under the supervision of a licensee and who, for compensation or gain, takes or receives a mortgage application, assembles information, and prepares paperwork and documentation necessary for obtaining a mortgage loan or arranges for a conditional mortgage loan commitment between a borrower and a lender, or arranges for a loan commitment from a lender. The term, mortgage loan originator, does not include an employee of a licensee whose job responsibilities are limited to clerical tasks that do not include processing of mortgage loans;

             (8) (11)      "Mortgage lending activities," for compensation, either directly or indirectly, accepting or offering to accept applications for making mortgage loans;

             (9) (12)      "Regional revolving loan fund," any regional revolving loan fund with a service area of at least five South Dakota counties, a designated staff for loan processing and servicing, a loan portfolio of at least one million dollars, and which is governed by a board of directors that meets at least quarterly ;

             (13)    "Residential mortgage loan," any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in 12 C.F.R. §  226.2(19), or residential real estate upon which is constructed or intended to be constructed a dwelling;

             (14)    "Unique identifier," a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry . ".

     On page 2, delete lines 1 to 24, inclusive.

     On page 3, delete lines 1 to 19, inclusive.
     On page 4, line 1, after "duties" insert "subsequent to the receipt of an application".

     On page 9, line 20, after "broker" insert " or mortgage brokerage ".

     On page 10, line 1, overstrike "or registration".

     On page 10, line 7, after "broker" insert " or mortgage brokerage ".

     On page 10, line 17, after " lender " insert " , mortgage brokerage, ".

     On page 12, line 24, after "lender," insert "mortgage brokerage,".

     On page 13, line 4, after "." Insert "A civil penalty for a series of violations may not exceed twenty-five thousand dollars.".

     On page 14, line 14, after "brokers," insert " mortgage brokerage, ".

     On page 16, line 14, after "lender," insert "mortgage brokerage,".

     On page 16, delete lines 23 and 24.

     On page 17, delete lines 1 to 4, inclusive.

     On page 17, line 15, after "lender," insert "mortgage brokerage,".

     On page 18, line 1, remove the overstrikes from " criminal background checks ".

     On page 18, line 1, delete " and ".

     On page 18, delete line 2, and insert "any continuing education requirements, and surety bond requirements under this chapter , to the extent that such entity is not involved in originating, brokering, or providing funds for residential mortgage loans .".

     On page 18, after line 2, insert:

"      Section 26. That § 54-14-22 be amended to read as follows:

     54-14-22.   Any person, including a mortgage loan originator, shall complete the equivalent of two years of service under the supervision and direction of a licensed mortgage broker , mortgage brokerage, or mortgage lender, or another jurisdiction's equivalent thereof, before that person is eligible to apply for a mortgage broker's , mortgage brokerage's, or mortgage lender's license. No mortgage broker, mortgage brokerage, mortgage lender, or mortgage loan originator is eligible for a license without such training and experience. The director may promulgate rules pursuant to chapter 1-26 with regard to such training and experience. Any person licensed as a mortgage broker or mortgage lender with the director prior to July 1, 2007, is exempt from this requirement.

     Section 27. That § 54-14-25 be amended to read as follows:

     54-14-25.   Any person, who without first obtaining a license or registration under this chapter, engages in the business or occupation of, or advertises or holds the person out as, or claims to be, or temporarily acts as, a mortgage broker, mortgage brokerage, mortgage lender, or mortgage loan originator in this state is guilty of a Class 2 misdemeanor and may be held responsible for all costs of prosecution, including restitution. ".


1060sd

     On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. That § 54-14-12 be amended to read as follows:

     54-14-12.   Terms used in this chapter mean:

             (1)      "Depository institution," the same meaning as provided in 12 U.S.C. §  1813(c) as of January 1, 2009, and includes any credit union;

             (2)     "Director," the director of the Division of Banking of the Department of Revenue and Regulation;

             (2) (3)      "Division," the Division of Banking of the Department of Revenue and Regulation;

             (4)    "Federal banking agencies," the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation;

             (5)    "Immediate family member," a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchildren, stepsibling, and adoptive relationship;

             (6)    "Individual," a natural person;

             (3) (7)      "Licensee," the person holding a license provided by this chapter;

             (4) (8)      "Mortgage lender," any person who, for valuable consideration, originates, sells, or services mortgages, or holds himself, herself, or itself out as a person who, for valuable consideration, originates, sells, or services mortgages, other than those exempt pursuant to § 54-14-21;

             (5) (9)      "Mortgage broker," any person who , for compensation or gain, acts as an intermediary between borrower and lender to assist a person in obtaining or applying to obtain a mortgage loan or holds himself, herself, or itself out as being able to assist a person in obtaining or applying to obtain a mortgage loan acts as a mortgage loan originator and has not less than a ten percent interest in a mortgage brokerage ;
             (5A) (10)      "Mortgage brokerage," any person engaged in placing mortgage loans with investors for a fee, but does not service such loans;

             (6)      "Mortgage brokering activities," for compensation, either directly or indirectly, assisting or offering to assist in the preparation of an application for a mortgage loan on behalf of a borrower, or negotiating or offering to negotiate the terms or conditions of a mortgage loan with any person making mortgage loans;

             (7)      "Mortgage loan originator," any person acting under the supervision of a licensee and who, for compensation or gain, takes or receives a mortgage application, assembles information, and prepares paperwork and documentation necessary for obtaining a mortgage loan or arranges for a conditional mortgage loan commitment between a borrower and a lender, or arranges for a loan commitment from a lender. The term, mortgage loan originator, does not include an employee of a licensee whose job responsibilities are limited to clerical tasks that do not include processing of mortgage loans;

             (8) (11)      "Mortgage lending activities," for compensation, either directly or indirectly, accepting or offering to accept applications for making mortgage loans;

             (12)    "Nationwide mortgage licensing system and registry," a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators;

             (9) (13)      "Regional revolving loan fund," any regional revolving loan fund with a service area of at least five South Dakota counties, a designated staff for loan processing and servicing, a loan portfolio of at least one million dollars, and which is governed by a board of directors that meets at least quarterly ;

             (14)    "Residential mortgage loan," any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in 12 C.F.R. §  226.2(19), or residential real estate upon which is constructed or intended to be constructed a dwelling;

             (15)    "Unique identifier," a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry .

     Section 2. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     For the purposes of this chapter, the term, loan processor or underwriter, means any individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed according to this chapter, or a person exempt according to this chapter. Clerical or support duties subsequent to the receipt of an application include the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a mortgage loan; and communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that the communication does not include offering or negotiating loan rates or terms, or counseling consumers about mortgage loan rates or terms.

     No individual engaging solely in loan processor or underwriter activities may represent to the public, through advertising or other means of communicating or providing information including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.

     Section 3. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     For the purposes of this chapter, the term, mortgage loan originator, means an individual who for compensation or gain or in the expectation of compensation or gain takes a mortgage loan application or offers or negotiates terms of a mortgage loan.

     A mortgage loan originator does not include:

             (1)    An individual engaged solely as a loan processor or underwriter except as otherwise provided in section 2 of this Act;

             (2)    An individual or entity that performs only real estate brokerage activities and is licensed or registered in accordance with applicable South Dakota law, unless the individual or entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator; or

             (3)    Any individual or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. §  101(53D) as of January 1, 2009.

     Section 4. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     For the purposes of this chapter, the term, real estate brokerage activity, means any activity that involves offering or providing real estate brokerage services to the public, including:

             (1)    Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

             (2)    Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

             (3)    Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);

             (4)    Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law;

             (5)    Offering to engage in any activity, or act in any capacity, described in this section.

     Section 5. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     For the purposes of this chapter, the term, registered mortgage loan originator, means any individual who:

             (1)    Meets the definition of mortgage loan originator and is an employee of:

             (a)    A depository institution;

             (b)    A subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or

             (c)    An institution regulated by the Farm Credit Administration; and

             (2)    Is registered with, and maintains a unique identifier through, the nationwide mortgage licensing system and registry.

     Section 6. That § 54-14-13 be amended to read as follows:

     54-14-13.   No person may act as a mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator in this state or use the title, mortgage broker, mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator with respect to any property located in South Dakota without first obtaining and maintaining a license , or in the case of originators a registration, and undergoing a criminal background check from the division according to the requirements of this chapter. Each person shall be licensed or registered, and maintain a unique identifier through the nationwide mortgage licensing system and registry .

     Section 7. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The director may not issue a mortgage loan originator license unless the director makes the following findings:

             (1)    The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction. No revocation for which there has been a subsequent formal vacation of the revocation may be considered by the director;

             (2)    The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:

             (a)    During the seven year period preceding the date of the application for licensing and registration; or

             (b)    At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering.

                 No pardon of a conviction may be considered a conviction for purposes of this subdivision;

             (3)    The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this chapter. For purposes of this subdivision, an applicant shows a lack of financial responsibility if the applicant has shown a disregard in the management of his or her own financial affairs. Factors to be considered may include current outstanding judgments, except judgments solely as a result of medical expenses; current outstanding tax liens or other governmental liens and filings; foreclosures within the past three years; or a pattern of seriously delinquent accounts within the past three years;

             (4)    The applicant has completed the pre-licensing education requirement provided for by rule pursuant to §  54-14-31;

             (5)    The applicant has passed a written test that meets the test requirement provided for by rule pursuant to §  54-14-31; and

             (6)    The applicant has met the surety bond requirement as required by § 54-14-24 and provided for by rule pursuant to §  54-14-24.

     The pre-licensing education and written testing requirements in subdivisions (4) and (5) shall be met prior to license renewals being approved for the renewal period that ends on December 31, 2009, and all new licenses issued after that date.

     Section 8. That § 54-14-15 be amended to read as follows:

     54-14-15.   Each applicant for licensure and registration under this chapter shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. Upon application, the Division of Banking shall submit completed fingerprint cards to the Division of Criminal Investigation. Upon completion of the criminal background check, the Division of Criminal Investigation shall forward to the Division of Banking all information obtained as a result of the criminal background check. In connection with an application for licensing as a mortgage lender, mortgage broker, or mortgage loan originator, the applicant shall furnish to the nationwide mortgage licensing system and registry information concerning the applicant's identity, including:

             (1)    Fingerprints for submission to the Federal Bureau of Investigation, and any governmental agency or entity authorized to receive such information, for a state, national, and international criminal history background check; and

             (2)    Personal history and experience in a form prescribed by the nationwide mortgage licensing system and registry, including the submission of authorization for the nationwide mortgage licensing system and registry and the director to obtain:
             (a)    An independent credit report from a consumer reporting agency described in 15 U.S.C. §  1681(a) as of January 1, 2009; and

             (b)    Information related to any administrative, civil, or criminal findings by any governmental jurisdiction.

     The Division of Banking may require a state and federal criminal background check for any licensee who is the subject of a disciplinary investigation by the division. Failure to submit or cooperate with the criminal background investigation is grounds for denial of an application or may result in revocation of a license. The applicant shall pay for any fees charged for the cost of fingerprinting or the criminal background investigation. Any applicant who has previously completed a background check in another jurisdiction in anticipation of receiving a license or registration in that jurisdiction may have the results of such a background check forwarded to the division in satisfaction of this requirement. However, no background check in another jurisdiction may be used if it was completed more than one year prior to application.

     The director may use the nationwide mortgage licensing system and registry as a channeling agent for requesting information from and distributing information to the United States Department of Justice or any governmental agency. The director may use the nationwide mortgage licensing system and registry as a channeling agent for requesting and distributing information to and from any source so directed by the director.

     Section 9. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The minimum standards for license renewal for mortgage loan originators shall include the following:

             (1)    The mortgage loan originator continues to meet the minimum standards for license issuance under subdivisions (1) to (5), inclusive, of section 7 of this Act; and

             (2)    The mortgage loan originator has satisfied the annual continuing education requirements provided by rule pursuant to §  54-14-31.

     Section 10. That § 54-14-16 be amended to read as follows:

     54-14-16.   The applicant for an initial license shall submit a fee in the amount of not more than two hundred fifty dollars for a mortgage loan originator, not more than five hundred dollars for a mortgage broker or mortgage brokerage license, and not more than one thousand dollars for a mortgage lender license. The applicant for initial registration shall submit a fee in the amount of not more than two hundred fifty dollars for mortgage loan originator registration. The director shall establish the fees by rules promulgated pursuant to chapter 1-26.

     Section 11. That § 54-14-19 be amended to read as follows:

     54-14-19.   Any application for renewal of a license or registration under this chapter must shall be postmarked to the director by December first and shall be accompanied by a fee to be established by the director by rules promulgated pursuant to chapter 1-26. Any license granted by the division prior to the implementation of this chapter is valid until December 31, 2007. However, no mortgage loan originator is required to be licensed prior to December 31, 2007. The fee to transact business as a mortgage loan originator may not exceed two hundred fifty dollars. The fee to transact business as a mortgage broker or mortgage brokerage may not exceed five hundred dollars. The fee to transact business as a mortgage lender may not exceed one thousand dollars. The fee to register as a mortgage loan originator may not exceed two hundred fifty dollars. Any licensee or registrant that files for renewal after December first and before January first of the next calendar year shall pay a late fee in addition to the renewal fee. The late fee, not to exceed twenty-five percent of the renewal fee, shall be established by the director by rules promulgated pursuant to chapter 1-26. After January first no license may be issued unless an application is filed pursuant to §§ 54-14-13 to 54-14-16, inclusive.

     Section 12. That § 54-14-21 be amended to read as follows:

     54-14-21.   The following entities and their employees and exclusive agents are exempt from the provisions of requirement of a mortgage lender, mortgage brokerage, or mortgage broker license as required by this chapter:

             (1)      Any state bank and its subsidiary;

             (2)      Any national bank and its subsidiary;

             (3)      Any bank holding company and its subsidiary;

             (4)      Any other federally insured financial institution, and its holding company and subsidiary; and

             (5)      Any South Dakota chartered trust company ;

             (6)      Any real estate broker licensed pursuant to chapter 36-21A; and

             (7)      Any insurance company or any person acting as an intermediary thereto, if participating in mortgage lending activities solely with its own assets and for its own portfolio .

     Any registered mortgage loan originator, if acting for a depository institution, is exempt from the provisions of this chapter.

     Section 13. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     No loan processor or underwriter who is an independent contractor may engage in the activities of a loan processor or underwriter unless the loan processor or underwriter obtains and maintains a license under this chapter. Each loan processor or underwriter who is an independent contractor licensed as a mortgage loan originator shall have and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.

     Section 14. That § 54-14-24 be amended to read as follows:

     54-14-24.   Any applicant for a license Each mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator shall submit with the any application , and maintain at all times, a surety bond in the an amount of twenty-five thousand dollars that reflects the total dollar amount of loans originated by the licensee and the licensee's employees and agents, but not less than twenty-five thousand dollars. The surety bond shall be in a form and amount as prescribed by the director.

     Each mortgage loan originator and mortgage broker shall be covered by a surety bond in accordance with this section. If the mortgage loan originator or mortgage broker is an employee or exclusive agent of a person subject to this chapter, the surety bond of such person can be used in lieu of the mortgage loan originator or mortgage broker's surety bond requirement. The surety bond shall provide coverage for each mortgage loan originator and mortgage broker in an amount prescribed by this section .

     The bond shall be issued by a surety company qualified to do business as a surety in this state. The bond shall be in favor of this state for the use of this state and any person who has a cause of action under this chapter against the licensee. The bond shall be conditioned on:

             (1)      The licensee's faithful performance under this chapter and any rules adopted pursuant to this chapter; and

             (2)      The payment of any amounts that are due to the state or another person during the time the bond is in force.

     The bond may be continuous, and regardless of how long the bond remains in force, the aggregate liability of a surety to all persons damaged by a licensee's violation of the provisions of this chapter may not exceed the amount of the bond. The bond may be cancelled by the surety upon thirty days notice to the licensee and the director, and the surety's liability on the bond shall also terminate upon the effective date of any suspension or revocation of the license.

     A mortgage brokerage may obtain one bond to satisfy the bond requirement for individual applicants employed by the mortgage brokerage. If an action is commenced on a licensee's bond, the director may require the filing of a new bond. Immediately upon recovery in any action on the bond the licensee shall file a new bond.

     The director may promulgate rules pursuant to chapter 1-26 with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of this chapter.

     Section 15. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The director may impose a civil penalty in an amount not to exceed one thousand dollars upon any person acting as a mortgage lender, mortgage brokerage, mortgage broker, or mortgage loan originator in this state without the required license or registration. Each instance of operating without a license, or holding oneself out as being authorized to conduct the business authorized by this chapter, constitutes a separate violation of this chapter and subjects any such person to a civil penalty for each violation. A civil penalty for a series of violations may not exceed twenty-five thousand dollars.

     Section 16. That § 54-14-27 be amended to read as follows:

     54-14-27.   The director may condition, deny, decline to renew, suspend , for a period not to exceed six months, or revoke a license or registration if the director finds:

             (1)      Any fact or condition exists that, if it had existed at the time the licensee or registrant applied for its license or registration , would have been grounds for denying the application;

             (2)      The licensee or registrant violated any provisions of this chapter or any rule or order promulgated by the director;

             (3)      The licensee or registrant refuses to permit the director to make any examination authorized by this chapter or rule promulgated pursuant to this chapter, or any federal statute, rule, or regulation pertaining to mortgage lending;

             (4)      The licensee or registrant willfully fails to make any report required of this chapter;

             (5)      The competence, experience, character, or general fitness of the licensee or registrant indicates that it is not in the public interest to permit the licensee or registrant to continue to conduct business;

             (6)      The bond of the licensee has been revoked or cancelled by the surety;

             (7)      The licensee or any partner, officer, director, manager, or employee of the licensee has been convicted of a felony or a misdemeanor involving any aspect of the financial services business;

             (8)      The licensee or any partner, officer, director, manager, or employee of the licensee has had a license substantially equivalent to a license under this chapter, and issued by another state, denied, revoked or suspended under the laws of that state;

             (9)      The licensee or registrant has filed an application for a license or registration which as of the date the license or registration was issued, or as of the date of an order denying, suspending, or revoking a license or registration , was incomplete in any material respect or contained any statement that was, in light of the circumstances under which it was made, false or misleading with respect to any material fact.

     The director may revoke a license or registration for good cause pursuant to chapter 1-26. If the licensee is the holder of more than one license, the director may revoke any or all of the licenses.

     Section 17. That § 54-14-31 be amended to read as follows:

     54-14-31.   The director may promulgate rules pursuant to chapter 1-26 for the pre-licensing education, written testing, continuing education , personal history, and experience checks of mortgage brokers, mortgage brokerages, mortgage lenders, and mortgage loan originators, and for the management and administration of licenses and registrations issued pursuant to this chapter.

     The director may promulgate rules pursuant to chapter 1-26 to establish fees required for the licensure and renewal of licenses through the nationwide mortgage licensing system and registry in addition to those fees established in § §  54-14-16 and 54-14-19. Such fees may not exceed five hundred dollars.

     Section 18. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The director may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter.

     Section 19. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The director shall establish a process through rules promulgated pursuant to chapter 1-26 to allow mortgage loan originators and mortgage brokers to challenge information entered into the nationwide mortgage licensing system and registry by the director.

     Section 20. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The following provisions apply to the sharing of information collected and retained by the director during the administration of this chapter:

             (1)    Except as otherwise provided in 12 U.S.C. §  5111 as of January 1, 2009, the requirements under any federal law or §  51A-2-35 regarding privacy or confidentiality of any information or material provided to the nationwide mortgage licensing system and registry, and any privilege arising under federal or state law (including the rules of any federal or state court) with respect to the information or material, continue to apply to the information or material after the information or material has been disclosed to the nationwide mortgage licensing system and registry. The information and material may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections by federal law or §  51A-2-35;

             (2)    No information or material that is subject to a privilege or confidentiality under this section is subject to:
             (a)    Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the respective state; or

             (b)    Subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the nationwide mortgage licensing system and registry with respect to the information or material, the person to whom the information or material pertains waives, in whole or in part, in the discretion of the person, that privilege.

     This section does not apply with respect to the information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators that is included in the nationwide mortgage licensing system and registry for access by the public.

     Section 21. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     Each mortgage lender, mortgage brokerage, mortgage broker, and mortgage loan originator shall submit to the nationwide mortgage licensing system and registry reports of condition, which shall be in such form and shall contain such information as the director establishes through rules promulgated pursuant to chapter 1-26.

     Section. 22. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The director shall report on a regular basis violations of this chapter, as well as enforcement actions and other relevant information, to the nationwide mortgage licensing system and registry subject to the provisions contained in section 20 of this Act.

     Section 23. That chapter 54-14 be amended by adding thereto a NEW SECTION to read as follows:

     The following are exempt from the requirement of obtaining a mortgage loan originator license:

             (1)    Any individual who offers or negotiates terms of a mortgage loan with or on behalf of an immediate family member of the individual;

             (2)    Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence; or

             (3)    A licensed attorney who negotiates the terms of a mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, mortgage brokerage, mortgage broker, or other mortgage loan originator or by any agent of the lender, mortgage broker, or other mortgage loan originator.

     Section 24. That § 54-14-20 be amended to read as follows:

     54-14-20.   The State of South Dakota, any political subdivision of the state, and any quasi- governmental organization created by an executive order of the State of South Dakota and any subsidiary of such organization; any nonprofit corporation formed pursuant to chapter 47-22; any nonprofit United States Treasury Community Development Financial Institution, Small Business Administration Certified Development Company, or Regional Revolving Loan Fund; or any commercial club, chamber of commerce, or industrial development corporation formed pursuant to § 9-12-11 or 9-27-37 is subject to this chapter but exempt from initial license fees, renewal fees, criminal background checks, the years of service requirement in § 54-14-22, any continuing education requirements, and surety bond requirements under this chapter exempt from the requirements of this chapter .

     Section 25. That § 54-14-22 be amended to read as follows:

     54-14-22.   Any person , including a mortgage loan originator, shall complete the equivalent of two years of service under the supervision and direction of a licensed mortgage broker , mortgage brokerage, or mortgage lender, or another jurisdiction's equivalent thereof, before that person is eligible to apply for a mortgage broker's , mortgage brokerage's, or mortgage lender's license. No mortgage broker, mortgage brokerage, or mortgage lender , or mortgage loan originator is eligible for a license without such training and experience. The director may promulgate rules pursuant to chapter 1-26 with regard to such training and experience. Any person licensed as a mortgage broker or mortgage lender with the director prior to July 1, 2007, is exempt from this requirement.

     Section 26. That § 54-14-25 be amended to read as follows:

     54-14-25.   Any person, who without first obtaining a license or registration under this chapter, engages in the business or occupation of, or advertises or holds the person out as, or claims to be, or temporarily acts as, a mortgage broker, mortgage brokerage, mortgage lender, or mortgage loan originator in this state is guilty of a Class 2 misdemeanor and may be held responsible for all costs of prosecution, including restitution. "


    And that as so amended said bill do pass.

Respectfully submitted,
Tim Rounds, Chair

Also MR. SPEAKER:

    The Committee on Education respectfully reports that it has had under consideration HB  1171 and returns the same with the recommendation that said bill do pass.

Also MR. SPEAKER:

    The Committee on Education respectfully reports that it has had under consideration HB  1172 which was deferred to the 41st Legislative Day.

Respectfully submitted,
Ed McLaughlin, Chair

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB  1122 and 1138 and returns the same with the recommendation that said bills do pass.

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB  1144 which was deferred to the 41st Legislative Day.

Respectfully submitted,
Joni M. Cutler, Chair

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB  1096, 1132, and 1175 which were deferred to the 41st Legislative Day.

Respectfully submitted,
Kristi Noem, Vice Chair

Also MR. SPEAKER:

    The Committee on Commerce respectfully reports that it has had under consideration HB  1114, 1115, and 1116 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 Commerce respectfully reports that it has had under consideration HB  1143 which was deferred to the 41st Legislative Day.

Respectfully submitted,
Tim Rounds, Chair

MESSAGES FROM THE SENATE

MR. SPEAKER:

     I have the honor to return herewith HB 1029, 1044, 1045, and 1085 which have passed the Senate without change.

Also MR. SPEAKER:

     I have the honor to transmit herewith SB 38 and 68 which have passed the Senate and your favorable consideration is respectfully requested.

Respectfully,
Trudy Evenstad, Secretary

MOTIONS AND RESOLUTIONS

     HCR 1005: A CONCURRENT RESOLUTION, To honor and thank George W. Bush, the forty-third president of the United States of America.

     Rep. Jensen moved that HCR 1005 as found on page 182 of the House Journal be adopted.

     The question being on Rep. Jensen's motion that HCR 1005 be adopted.

     And the roll being called:

     Yeas 69, Nays 0, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Excused:
Faehn

     So the motion having received an affirmative vote of a majority of the members-elect, the Speaker declared the motion carried and HCR 1005 was adopted.


CONSIDERATION OF REPORTS OF COMMITTEES

     Rep. Noem moved that the reports of the Standing Committees on

     Appropriations on HB 1040 as found on page 206 of the House Journal ; also

     State Affairs on HB 1118 as found on page 207 of the House Journal be adopted.

     Which motion prevailed.

FIRST READING OF HOUSE BILLS AND JOINT RESOLUTIONS

     HB 1239  Introduced by:  Representatives Schrempp, Blake, Burg, Dennert, Elliott, Engels, Fargen, Feickert, Gibson, Hoffman, Iron Cloud III, Killer, Kirschman, Lange, Lucas, Nygaard, Olson (Betty), Schlekeway, Solberg, Sorenson, Street, Thompson, Vanderlinde, Verchio, and Wink and Senators Howie, Abdallah, Bradford, Fryslie, Hanson (Gary), Kloucek, Maher, Miles, and Peterson

     FOR AN ACT ENTITLED, An Act to create the South Dakota Boxing Commission and to provide for the supervision of boxing, kickboxing, and mixed martial arts competitions and sparring exhibitions in the state.

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

     HB 1240  Introduced by:  Representatives Faehn, Curd, Cutler, Feinstein, Hunhoff (Bernie), Lucas, McLaughlin, Pitts, Rave, Sly, Thompson, and Tidemann and Senators Knudson, Adelstein, Dempster, Hansen (Tom), Heidepriem, Hunhoff (Jean), Miles, and Nesselhuf

     FOR AN ACT ENTITLED, An Act to prohibit smoking tobacco or carrying lighted tobacco products in certain places and to require certain persons to inform violators of the prohibition.

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

     HB 1241  Introduced by:  Representatives Sly, Bolin, Killer, Lange, Lucas, McLaughlin, Romkema, Schlekeway, Sorenson, and Vanderlinde and Senators Jerstad, Bradford, Maher, and Merchant

     FOR AN ACT ENTITLED, An Act to provide for the delivery of special education or special education and related services to a child during the child's transition from one state school district to another.

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


     HB 1242  Introduced by:  Representatives Sly, Juhnke, Kirkeby, Lange, Lederman, Lucas, and McLaughlin and Senators Maher and Rhoden

     FOR AN ACT ENTITLED, An Act to rescind the repeal on funding for sparse school districts that will take effect on June 30, 2009, and to decrease the value of the small school adjustment in the state aid to education formula.

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

     HB 1243  Introduced by:  Representatives Hamiel and Rounds and Senators Dempster and Olson (Russell)

     FOR AN ACT ENTITLED, An Act to modify the requirements regarding the ownership and use of local government endowment funds.

     Was read the first time and referred to the Committee on Local Government.

     HB 1244  Introduced by:  Representative Rounds and Senator Gray

     FOR AN ACT ENTITLED, An Act to revise voter qualifications in certain rural fire protection district elections.

     Was read the first time and referred to the Committee on Local Government.

     HB 1245  Introduced by:  Representatives Engels, Blake, Burg, Dennert, Dreyer, Fargen, Feickert, Feinstein, Frerichs, Gibson, Hunhoff (Bernie), Kirkeby, Kirschman, Lange, Lederman, Lucas, Moser, Nygaard, Peters, Schlekeway, Schrempp, Solberg, Sorenson, Street, Thompson, and Wismer and Senators Heidepriem, Abdallah, Adelstein, Ahlers, Bradford, Gant, Gillespie, Haverly, Jerstad, Kloucek, Maher, Merchant, Miles, Nesselhuf, Peterson, and Turbak Berry

     FOR AN ACT ENTITLED, An Act to provide certain protections to governmental employees who report certain violations or suspected violations of law.

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

     HB 1246  Introduced by:  Representatives Gosch, Cutler, Hunt, and Schlekeway and Senators Hansen (Tom), Nesselhuf, Turbak Berry, and Vehle

     FOR AN ACT ENTITLED, An Act to revise certain provisions relating to service of garnishee summons, affidavit, and garnishment disclosure.

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

     HB 1247  Introduced by:  Representatives Feinstein, Blake, Elliott, Engels, Frerichs, Gibson, Hunhoff (Bernie), Killer, Kirkeby, Kirschman, Lange, Lederman, Lucas, Nygaard, Schrempp, Solberg, Sorenson, and Thompson and Senators Ahlers, Hanson (Gary), Heidepriem, Kloucek, Merchant, Peterson, and Turbak Berry

     FOR AN ACT ENTITLED, An Act to revise certain provisions relating to the transfer of appropriations.

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

     HB 1248  Introduced by:  Representatives Lange, Blake, Bolin, Brunner, Burg, Dennert, Elliott, Feickert, Frerichs, Hoffman, Hunt, Iron Cloud III, Killer, Kirkeby, Kirschman, Lucas, Nygaard, Olson (Betty), Romkema, Schrempp, Sly, Solberg, Sorenson, Street, Thompson, and Vanderlinde and Senators Peterson, Adelstein, Ahlers, Bartling, Jerstad, Kloucek, Maher, Miles, and Rhoden

     FOR AN ACT ENTITLED, An Act to authorize the South Dakota Building Authority to provide for the construction of a college of veterinary medicine and to make an appropriation therefor.

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

     HB 1249  Introduced by:  Representatives Lange, Elliott, Iron Cloud III, and Street and Senator Bradford

     FOR AN ACT ENTITLED, An Act to revise certain provisions related to the use of artificial light to spot big game animals.

     Was read the first time and referred to the Committee on Agriculture and Natural Resources.

     HB 1250  Introduced by:  Representatives Iron Cloud III, Bolin, Elliott, Fargen, Jensen, Juhnke, Killer, Olson (Ryan), Schlekeway, Sly, Sorenson, and Thompson and Senators Bradford, Abdallah, Adelstein, and Merchant

     FOR AN ACT ENTITLED, An Act to provide funding to certain school districts for students who enroll in the district's virtual school after the date on which fall enrollment is calculated.

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

     HB 1251  Introduced by:  The Committee on State Affairs at the request of the Office of the Governor

     FOR AN ACT ENTITLED, An Act to increase the annual license stamp fee upon certain gaming devices.

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

     HB 1252  Introduced by:  The Committee on State Affairs at the request of the Office of the Governor

     FOR AN ACT ENTITLED, An Act to repeal certain provisions relating to the education enhancement tobacco tax fund.

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

     HB 1253  Introduced by:  The Committee on State Affairs at the request of the Office of the Governor

     FOR AN ACT ENTITLED, An Act to revise certain provisions regarding administration of the catastrophic county poor relief fund.

     Was read the first time and referred to the Committee on Local Government.

     HB 1254  Introduced by:  Representatives McLaughlin, Bolin, Brunner, Dreyer, Gosch, Hunt, Kirkeby, Kopp, Krebs, Lust, Romkema, Schlekeway, Sly, and Turbiville and Senators Adelstein, Haverly, and Tieszen

     FOR AN ACT ENTITLED, An Act to revise the funding of elementary and secondary education and to increase the required minimum size of a school district.

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

     HB 1255  Introduced by:  Representatives Juhnke, Brunner, Burg, Dennert, Frerichs, Olson (Betty), Olson (Ryan), Putnam, Rausch, Rounds, Schrempp, Tidemann, Turbiville, and Vanneman and Senators Ahlers, Bartling, Bradford, Hansen (Tom), Hanson (Gary), Maher, and Rhoden

     FOR AN ACT ENTITLED, An Act to revise the telecommunications gross receipts tax.

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

     HB 1256  Introduced by:  Representatives Brunner, Deadrick, Faehn, Hoffman, Kopp, Tidemann, and Turbiville and Senators Bradford and Schmidt

     FOR AN ACT ENTITLED, An Act to provide for a temporary increase in the sales and use tax and to declare an emergency.

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

     HB 1257  Introduced by:  Representatives Brunner, Deadrick, Greenfield, Juhnke, Kirkeby, Kopp, Krebs, Lederman, Olson (Betty), Russell, and Verchio and Senators Schmidt, Gant, Howie, Kloucek, and Maher

     FOR AN ACT ENTITLED, An Act to provide for the right to possess a firearm on the campuses of public institutions of higher education.

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

     HB 1258  Introduced by:  Representatives Feinstein, Engels, Feickert, Gibson, Gosch, Killer, Kirkeby, Kirschman, Krebs, Lederman, Lucas, Lust, Moser, and Thompson and Senators Adelstein, Bartling, Dempster, Hansen (Tom), Jerstad, Merchant, Peterson, and Turbak Berry

     FOR AN ACT ENTITLED, An Act to allow certain children of overseas citizens to vote in the state.

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

     HB 1259  Introduced by:  Representatives Feinstein, Dennert, Elliott, Engels, Gosch, Killer, Kirkeby, Kirschman, Lederman, Moser, and Wismer and Senators Ahlers, Adelstein, Bartling, Bradford, Heidepriem, Jerstad, Merchant, Turbak Berry, and Vehle

     FOR AN ACT ENTITLED, An Act to limit the amount that may be charged for obtaining copies of medical records if the request is made pursuant to Social Security Disability or Supplemental Security Income claims.

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

     HB 1260  Introduced by:  Representatives Hamiel, Carson, Cronin, Curd, Dennert, Faehn, Frerichs, Greenfield, Hoffman, Hunhoff (Bernie), Kirkeby, Krebs, Lederman, McLaughlin, Schlekeway, Sly, Vanneman, and Wink and Senators Gant, Abdallah, Hansen (Tom), Heidepriem, Knudson, Tieszen, and Vehle

     FOR AN ACT ENTITLED, An Act to require that a request for proposals be issued for certain state contracts for professional services.

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

     HB 1261  Introduced by:  Representatives Turbiville, Burg, Dennert, Greenfield, Kirkeby, Schrempp, and Verchio and Senators Nelson, Abdallah, and Bartling

     FOR AN ACT ENTITLED, An Act to allow slot machines to be substituted for video lottery machines in certain alcoholic beverage establishments.

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

     HB 1262  Introduced by:  Representatives Hunt, Bolin, Frerichs, Greenfield, Lange, Lust, Noem, Novstrup (David), Rounds, Schrempp, and Verchio and Senator Novstrup (Al)

     FOR AN ACT ENTITLED, An Act to revise certain provisions regarding paternity and termination of parental rights.

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

     HB 1263  Introduced by:  Representatives Gosch and Pitts and Senators Maher and Olson (Russell)

     FOR AN ACT ENTITLED, An Act to revise certain provisions concerning compensation for service rights of electric utilities in areas annexed by municipalities.

     Was read the first time and referred to the Committee on Local Government.

     HB 1264  Introduced by:  Representatives Gosch, Cronin, Feinstein, Frerichs, Gibson, Greenfield, Hoffman, Jensen, Kirkeby, Kirschman, Krebs, Lederman, Lust, Moser, Novstrup (David), Rounds, Solum, Van Gerpen, and Verchio and Senators Gant, Ahlers, Haverly, Howie, and Maher

     FOR AN ACT ENTITLED, An Act to provide for the utilization of conditional early release bonds in regard to certain furloughs and paroles.

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

     HB 1265  Introduced by:  Representatives Bolin, Cronin, Dreyer, Feinstein, Gosch, Kirkeby, Lederman, Lust, Olson (Ryan), Peters, Rausch, and Russell and Senators Ahlers, Adelstein, Brown, Dempster, Gant, Gillespie, Haverly, and Miles

     FOR AN ACT ENTITLED, An Act to allow sellers to receive attorney fees in actions involving the disclosure statement required for certain real estate transfers.

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

FIRST READING OF SENATE BILLS AND JOINT RESOLUTIONS

     SB 38: FOR AN ACT ENTITLED, An Act to require school districts to keep contiguous boundaries when reorganizing.

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

     SB 68: FOR AN ACT ENTITLED, An Act to authorize the establishment, operation, and control of research parks on state land.

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

SECOND READING OF CONSENT CALENDAR ITEMS

     HB 1026: FOR AN ACT ENTITLED, An Act to revise certain provisions permitting cities and counties to issue full-service restaurant on-sale alcohol licenses.

     Was read the second time.

     The question being "Shall HB 1026 pass as amended?"

     And the roll being called:

     Yeas 67, Nays 2, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Nays:
Iron Cloud III; Kopp

     Excused:
Faehn

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

     HB 1010: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the imposition of sales and use tax on telecommunications services and ancillary services.

     Was read the second time.

     The question being "Shall HB 1010 pass?"

     And the roll being called:

     Yeas 69, Nays 0, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Excused:
Faehn

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

     HB 1011: FOR AN ACT ENTITLED, An Act to revise restrictions on the assignment and transfer of certain tax refund permits and refund claims.

     Was read the second time.

     The question being "Shall HB 1011 pass?"

     And the roll being called:

     Yeas 69, Nays 0, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Excused:
Faehn

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

     HB 1133: FOR AN ACT ENTITLED, An Act to authorize certain specialty license plates to be placed on motorcycles.

     Was read the second time.

     The question being "Shall HB 1133 pass?"

     And the roll being called:

     Yeas 69, Nays 0, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Excused:
Faehn

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

     HB 1136: FOR AN ACT ENTITLED, An Act to repeal certain provisions relating to the purchase of private water lines.

     Was read the second time.

     The question being "Shall HB 1136 pass?"

     And the roll being called:

     Yeas 69, Nays 0, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Excused:
Faehn

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

     HB 1139: FOR AN ACT ENTITLED, An Act to repeal certain obsolete provisions relating to the discontinuance of county homes.

     Was read the second time.

     The question being "Shall HB 1139 pass?"

     And the roll being called:

     Yeas 69, Nays 0, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave


     Excused:
Faehn

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

SECOND READING OF HOUSE BILLS AND JOINT RESOLUTIONS

     HB 1112: FOR AN ACT ENTITLED, An Act to establish certain restrictions and requirements related to encumbrances on wind easements.

     Was read the second time.

     The question being "Shall HB 1112 pass as amended?"

     And the roll being called:

     Yeas 44, Nays 23, Excused 3, Absent 0

     Yeas:
Blake; Boomgarden; Burg; Cutler; Dennert; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Hunhoff (Bernie); Iron Cloud III; Killer; Kirkeby; Kirschman; Lange; Lederman; Lucas; Moser; Noem; Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Sorenson; Steele; Street; Thompson; Turbiville; Van Gerpen; Vanderlinde; Wink; Wismer

     Nays:
Bolin; Brunner; Carson; Cronin; Curd; Dreyer; Greenfield; Hamiel; Hoffman; Hunt; Jensen; Juhnke; Kopp; Krebs; Lust; McLaughlin; Novstrup (David); Rausch; Solum; Tidemann; Vanneman; Verchio; Speaker Rave

     Excused:
Deadrick; Faehn; Putnam

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

     HB 1022: FOR AN ACT ENTITLED, An Act to make certain members of limited liability companies and partners of partnerships personally responsible for certain tax debts.

     Was read the second time.

     The question being "Shall HB 1022 pass as amended?"

     And the roll being called:


     Yeas 68, Nays 0, Excused 2, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Greenfield; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Excused:
Faehn; Putnam

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

     HB 1090: FOR AN ACT ENTITLED, An Act to schedule certain controlled substances and to declare an emergency.

     Was read the second time.

1090ja

     Rep. Lucas moved that HB 1090 be amended as follows:

     On the printed bill, delete everything after the enacting clause and insert:

     "
     Section 1. No person may knowingly possess Salvia divinorum. It is a Class 1 misdemeanor to possess two ounces of Salvia divinorum or less. It is a Class 6 felony to possess more than two ounces of Salvia divinorum.

     Section 2. Whereas, this Act is necessary for the immediate preservation of the public peace, health, or safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval."


     Rep. Bernie Hunhoff moved the previous question.

     Which motion prevailed.

     A roll call vote was requested and supported.


     The question being on Rep. Lucas' motion that HB 1090 be amended.

     And the roll being called:

     Yeas 43, Nays 26, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Deadrick; Dennert; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Hoffman; Hunhoff (Bernie); Iron Cloud III; Jensen; Juhnke; Killer; Kirkeby; Kirschman; Lange; Lucas; Lust; Nygaard; Olson (Ryan); Pitts; Romkema; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Turbiville; Vanderlinde; Wismer; Speaker Rave

     Nays:
Carson; Cronin; Curd; Cutler; Dreyer; Greenfield; Hamiel; Hunt; Kopp; Krebs; Lederman; McLaughlin; Moser; Noem; Novstrup (David); Olson (Betty); Peters; Putnam; Rausch; Rounds; Russell; Tidemann; Van Gerpen; Vanneman; Verchio; Wink

     Excused:
Faehn

     So the motion having received an affirmative vote of a majority of the members present, the Speaker declared the motion carried and HB 1090 was so amended.

     Rep. Noem moved the previous question.

     Which motion prevailed.

     The question being "Shall HB 1090 pass as amended?"

     And the roll being called:

     Yeas 67, Nays 2, Excused 1, Absent 0

     Yeas:
Blake; Bolin; Boomgarden; Brunner; Burg; Carson; Cronin; Curd; Cutler; Deadrick; Dennert; Dreyer; Elliott; Engels; Fargen; Feickert; Feinstein; Frerichs; Gibson; Gosch; Hamiel; Hoffman; Hunhoff (Bernie); Hunt; Iron Cloud III; Jensen; Juhnke; Kirkeby; Kirschman; Kopp; Krebs; Lange; Lederman; Lucas; Lust; McLaughlin; Moser; Noem; Novstrup (David); Nygaard; Olson (Betty); Olson (Ryan); Peters; Pitts; Putnam; Rausch; Romkema; Rounds; Russell; Schlekeway; Schrempp; Sly; Solberg; Solum; Sorenson; Steele; Street; Thompson; Tidemann; Turbiville; Van Gerpen; Vanderlinde; Vanneman; Verchio; Wink; Wismer; Speaker Rave

     Nays:
Greenfield; Killer

     Excused:
Faehn

     So the bill having received an affirmative vote of a two-thirds majority of the members- elect, the Speaker declared the bill passed.

     The question being on the title.

1090jta

     Rep. Lucas moved that the title to HB 1090 be amended as follows:

     On page 1, line 1, of the printed bill, after "Act to" delete "schedule certain controlled substances" and insert "prohibit the possession of Salvia divinorum".

     Which motion prevailed and the title was so amended.

     HB 1004: FOR AN ACT ENTITLED, An Act to provide for the killing of mountain lions under certain circumstances and to provide for the disposition of such mountain lions.

     Was read the second time.

1004ra

     Rep. Brunner moved that HB 1004 be amended as follows:

     On page 1 of the printed bill, delete lines 8 to 14, inclusive.

     On page 2, delete lines 1 to 3, inclusive.

     Which motion prevailed.

     Rep. Noem moved the previous question.

     Which motion prevailed.

     The question being "Shall HB 1004 pass as amended?"

     And the roll being called:

     Yeas 37, Nays 32, Excused 1, Absent 0

     Yeas:
Boomgarden; Brunner; Carson; Cronin; Deadrick; Dennert; Fargen; Frerichs; Gosch; Greenfield; Hoffman; Hunt; Jensen; Juhnke; Kopp; Krebs; Lange; Lederman; Lust; Noem; Nygaard; Olson (Betty); Olson (Ryan); Pitts; Putnam; Rausch; Rounds; Russell; Schlekeway; Schrempp; Solum; Sorenson; Steele; Van Gerpen; Vanneman; Wink; Speaker Rave

     Nays:
Blake; Bolin; Burg; Curd; Cutler; Dreyer; Elliott; Engels; Feickert; Feinstein; Gibson; Hamiel; Hunhoff (Bernie); Iron Cloud III; Killer; Kirkeby; Kirschman; Lucas; McLaughlin; Moser; Novstrup (David); Peters; Romkema; Sly; Solberg; Street; Thompson; Tidemann; Turbiville; Vanderlinde; Verchio; Wismer

     Excused:
Faehn

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

     The question being on the title.

1004rta

     Rep. Brunner moved that the title to HB 1004 be amended as follows:

     On page 1, line 2, of the printed bill, after "circumstances" delete "and to provide for the disposition of such mountain lions".

     Which motion prevailed and the title was so amended.

     Rep. Noem moved that HB 1001, 1117, 1119, 1076, and 1021 be deferred to Tuesday, February 3rd, the 15th legislative day.

     Which motion prevailed.

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

     The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared HB 1029, 1032, 1044, 1045, and 1085 and finds the same correctly enrolled.

Respectfully submitted,

Timothy A. Rave, Chair

SIGNING OF BILLS

     The Speaker publicly read the title to

     HB 1029: FOR AN ACT ENTITLED, An Act to  modify the requirements for a filing of a consent to rate for property casualty insurance.

     HB 1032: FOR AN ACT ENTITLED, An Act to  revise the definition of an accredited prevention or treatment facility for the purposes of the prevention and treatment of alcohol and drug abuse.

     HB 1044: FOR AN ACT ENTITLED, An Act to  define a multidistrict, career and technical academy and to provide provisions for the establishment of such an academy.

     HB 1045: FOR AN ACT ENTITLED, An Act to  repeal the provisions for the South Dakota Academic Achievement Test Advisory Council.

     HB 1085: FOR AN ACT ENTITLED, An Act to  revise certain provisions concerning magistrate judge jurisdiction.

     And signed the same in the presence of the House.

     Rep. Turbiville moved that the House do now adjourn, which motion prevailed and at 3:41 p.m. the House adjourned.

Karen Gerdes, Chief Clerk