72nd Legislative Session -- 1997

Committee: Senate Commerce

Tuesday, January 28, 1997

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Daugaard
P      Lawler
P      Olson
P      Staggers
P      Valandra
P      Munson (David), Vice-Chair
P      Shoener, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Shoener


MOTION:      TO APPROVE THE MINUTES OF PREVIOUS MEETING

Moved by:      Senator Lawler
Second by:      Senator Olson
Action:      Prevailed by voice vote.

MOTION:      Approve the Joint Rules

Moved by:      Senator Lawler
Second by:      Senator Olson
Action:      Prevailed by voice vote.

          SB 104:   to clarify the time when wages are due by the employer of a separated employee.

Proponents:      Senator Barb Everist
          Dan Nelson,Sioux Falls Chamber of Commerce
          Jeff Simon, Dept of Labor
Opponents:      none

MOTION:      AMEND SB 104

j-104
     On page 1 , after line 9 , insert:

"      Section 2. That § 60-11-11 be amended to read as follows:
     60-11-11.   Whenever an employee not having a written contract for a definite period quits or resigns his that employment, the wages or compensation earned shall become are due and payable not later than the next regular stated pay day for which those hours would have normally been paid or as soon thereafter as the employee returns to the employer all property of the employer in the employee's possession. "


Moved by:      Senator Lawler
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 104 AS AMENDED

Moved by:      Senator Lawler
Second by:      Senator Staggers
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Daugaard, Lawler, Olson, Staggers, Valandra, Munson (David), Shoener

MOTION:      TO AMEND TITLE OF SB 104

j-104t
     On page 1 , line 1 , delete " by the employer of " , and insert " to employees after separation or resignation. " .

     On page 1 , delete line 2 .


Moved by:      Senator Olson
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

MOTION:      PLACE SB 104 ON CONSENT

Moved by:      Senator Olson
Second by:      Senator Lawler
Action:      Prevailed by voice vote.

          SB 75:   to clarify the acts that constitute unfair claims practice and establish requirements for claims practices and procedures.

Proponents:      Darla Lyon, Division of Insurance

          Richard Tieszen, State Farm Insurance
Opponents:      None

MOTION:      AMEND SB 75

j-75a
     On page 10 , after line 10 , insert:

"           Section 20. That chapter 58-33 be amended by adding thereto a NEW SECTION to read as follows:
     It is an improper claims practice for any domestic, foreign, or alien insurer transacting business in this state to commit any act defined in § 58-33-66 or 58-33-67 if:

             (1)    It is committed flagrantly and in conscious disregard of this chapter or any rules promulgated pursuant to this chapter; or

             (2)    It has been committed with such frequency to indicate a general business practice to engage in that type of conduct.

    Any administrative action taken by the director shall be pursuant to the provisions of chapter 1- 26.

     Section 21. That § 58-33-68 be repealed.
     58-33-68.   The Division of Insurance, in interpreting and enforcing § §   58-33-66 and 58-33-67, shall consider all pertinent facts and circumstances to determine the severity and appropriateness of action to be taken in regard to any violation of § §   58-33-66 to 58-33-69, inclusive, including but not limited to, the following:

                   (1)      The magnitude of the harm to the claimant or insured;
                   (2)      Any actions by the insured, claimant or insurer that mitigate or exacerbate the impact of the violation;
                   (3)      Actions of the claimant or insured which impeded the insurer in processing or settling the claim;
                   (4)      Actions of the insurer which increase the detriment to the claimant or insured. The director need not show a general business practice in taking administrative action for these violations.
     However, no administrative action may be taken by the director for a violation of this section unless the insurer has been notified of the violation and refuses to take corrective action to remedy the situation.
     Any administrative action taken by the director shall be pursuant to the provisions of chapter 1-26. "


Moved by:      Senator Olson
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 75 AS AMENDED

Moved by:      Senator Olson
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (6-1-0-0)

Voting yes:      Daugaard, Lawler, Olson, Valandra, Munson (David), Shoener

Voting no:      Staggers

     Senator Shoener passed the gavel to Senator Munson


          SB 107:   to clarify governmental ownership of insurance companies upon certain findings by the director of the Division of Insurance.

Proponents:      Senator Shoener
          Dave Gerdes, Crown Life Ins Co
          Darla Lyon, Div os Insurance
Opponents:      none

MOTION:      AMEND SB 107

j-107
     On page 2 , line 8 , delete " results " , and insert " does not result " .

     On page 2 , line 14 , after " prohibits " , insert " or affects " .


Moved by:      Senator Olson
Second by:      Senator Valandra
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 107 AS AMENDED

Moved by:      Senator Lawler
Second by:      Senator Daugaard
Action:      Prevailed by roll call vote.   (6-1-0-0)

Voting yes:      Daugaard, Lawler, Staggers, Valandra, Munson (David), Shoener

Voting no:      Olson

     Senator Munson passed the gavel back to Senator Shoener



          SB 111:   to clarify certain provisions relating to the valuation of the insurable interest of certain property insurance policies.

Proponents:      Senator Mike Rounds
          Ron Schmidt, American Insurance Corp
          Darla Lyon, Divison of Insurance
Opponents:      None

MOTION:      DO PASS SB 111

Moved by:      Senator Olson
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Daugaard, Lawler, Olson, Staggers, Valandra, Munson (David), Shoener

MOTION:      PLACE SB 111 ON CONSENT

Moved by:      Senator Olson
Second by:      Senator Valandra
Action:      Prevailed by voice vote.



Reconsidered (vote by which passed)

Moved by:    Senator Lawler
Seconded by:    Senator Valandra
Action:    Prevailed by voice vote

MOTION:      AMEND SB 111

j-111
     On page 1 , line 9 , delete " application " , and insert " applicable " .


Moved by:      Senator Olson
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 111 AS AMENDED

Moved by:      Senator Olson
Second by:      Senator Daugaard
Action:      Prevailed by roll call vote: (7-0-0-0)


Voting yes:     Daugaard,Lawler,Olson,Staggers,Valandra,Munson(David),Shoener

MOTION:      PLACE SB 111 ON CONSENT

Moved by:      Senator Olson
Second by:      Senator Valandra
Action:      Prevailed by voice vote.

     Senator Shoener passed the gavel to Senator Munson


          SB 120:   to clarify certain provisions relating to insurance arbitration between insurance companies.

Proponents:      Ron Schmidt, American Insurance Association
          Darla Lyon, Division of Insurance
Opponents:      None

MOTION:      DO PASS SB 120

Moved by:      Senator Olson
Second by:      Senator Daugaard
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Daugaard, Lawler, Olson, Staggers, Valandra, Munson (David), Shoener

MOTION:      PLACE SB 120 ON CONSENT

Moved by:      Senator Olson
Second by:      Senator Lawler
Action:      Prevailed by voice vote.

     Senator Munson passed the gavel back to Senator Shoener


          HB 1052:   to revise certain provisions relating to the recording of the transportation and shipment of gaming devices.

Proponents:      Larry Lyon, Commission on Gaming
Opponents:      None

MOTION:      DO PASS HB 1052

Moved by:      Senator Olson

Second by:      Senator Daugaard
Action:      Prevailed by roll call vote.   (7-0-0-0)

Voting yes:      Daugaard, Lawler, Olson, Staggers, Valandra, Munson (David), Shoener

MOTION:      ADJOURN

Moved by:      Senator Olson
Second by:      Senator Valandra
Action:      Prevailed by voice vote.



Doris J. Donner

_________________________________

Committee Secretary
Jerry J. Shoener, Chair

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