72nd Legislative Session -- 1997

Committee: House Taxation

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Apa
P      Belatti
P      Brown (Richard)
P      Diedrich
P      Koskan
P      Napoli
P      Peterson (Bill)
P      Barker
P      Kazmerzak
P      Moore
P      Waltman
P      Wick, Vice-Chair
P      Cutler, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Cutler.

MOTION:      TO APPROVE THE MINUTES OF FEBRUARY 6, 1997.

Moved by:      Representative Moore
Second by:      Representative Brown (Richard)
Action:      Prevailed by voice vote.

Vice-Chair Wick assumed the chair.

          HB 1168:   to require certain tax exempt property to be annually assessed.

Proponents:      Dennis Hanson, SD Association of County Commissioners, Pierre
Opponents:      Richard Reding, SD Health Care Association, Sioux Falls
          Jeremiah Murphy, Presentation Health Systems, Sioux Falls
Presented by:      Representative Steve Cutler, prime sponsor, Claremont
Comments by:      Ken McFarland, Sioux Falls

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          Ron Olinger, St. Mary's Healthcare Center of Pierre, Pierre

MOTION:      DO PASS HB 1168

Moved by:      Representative Cutler
Second by:      Representative Moore
Action:      Failed by roll call vote.   (6-7-0-0)

Voting yes:      Apa, Napoli, Barker, Moore, Waltman, Cutler

Voting no:      Belatti, Brown (Richard), Diedrich, Koskan, Peterson (Bill), Kazmerzak, Wick

MOTION:      DEFER HB 1168 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Brown (Richard)
Second by:      Representative Diedrich
Action:      Prevailed by roll call vote.   (7-6-0-0)

Voting yes:      Belatti, Brown (Richard), Diedrich, Koskan, Peterson (Bill), Kazmerzak, Wick

Voting no:      Apa, Napoli, Barker, Moore, Waltman, Cutler

          HB 1171:   to revise the types of property exempt from taxation.

Proponents:      Bill Bowen, lawyer representing Primrose, Aberdeen
          Clark Thares, one of the owners of Primrose, Aberdeen (Document 1)
          Beth Mantey, New West Senior Housing, Watertown
          Jim Schade, Director of Property and Special Taxes Division, Dept. of Revenue
        Dennis Gellhaus, owner and operator of Gellhaus Carehouse, Aberdeen
        Tim Rich, mayor of Aberdeen, Aberdeen
        Representative Jerry Apa, self, Lead
        Jim Thares, majority owner of Primrose, Aberdeen
        Mike O'Connor, self, Hartford
Opponents:      Richard Reding, SD Health Care Association, Sioux Falls
          Ron Olinger, lobbyist and attorney for St. Mary's Healthcare Center, Pierre (Document 2)
          Jeremiah Murphy, Presentation Health System, Sioux Falls
        Frank Drew, President of SD Association of Healthcare Organizations, Sioux Falls
Presented by:      Representative Steve Cutler, prime sponsor, Claremont

MOTION:      AMEND HB 1171

f-1171d

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

"      Section  1.  That § 10-4-9.3 be amended to read as follows:

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     10-4-9.3.   Property owned by any corporation, organization , or society and used primarily for human health care and health care related purposes is exempt from taxation. Such corporation, organization , or society must be nonprofit and recognized as an exempt organization under section 501(c)(3) of the United States Internal Revenue Code of 1954 , as amended, and in effect on January 1, 1986 1997 , and may not have any of its assets available to any private interest. Such property may be a hospital, sanitarium, orphanage, mental health center or adjustment training center regulated under chapter 27A-5, asylum, home, resort, congregate housing or camp. Congregate housing is health care related if it is an assisted, independent group-living environment operated by a health care facility licensed under chapter 34-12 which offers residential accommodations and supporting services primarily for persons at least sixty-two years of age or disabled as defined under chapter 10-6A. Supporting services must include the ability to provide health care and must include a food service which provides a balanced nutrition program. Such health care facility must admit all persons for treatment consistent with the facility's ability to provide medical services required by the patient until such facility is filled to its ordinary capacity and must conform to all regulations of and permit inspections by the South Dakota Department of Health. "

Moved by:      Representative Cutler
Second by:      Representative Peterson (Bill)
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION AMEND HB 1171

f-1171e

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

"      Section  2.  That § 10-4-9.3 be amended to read as follows:

     10-4-9.3.   Property owned by any corporation, organization , or society and used primarily for human health care and health care related purposes is exempt from taxation. Such corporation, organization , or society must be nonprofit and recognized as an exempt organization under section 501(c)(3) of the United States Internal Revenue Code of 1954 , as amended, and in effect on January 1, 1986 1997 , and may not have any of its assets available to any private interest. Such property may be a hospital, sanitarium, orphanage, mental health center or adjustment training center regulated under chapter 27A-5, asylum, home, resort, congregate housing , or camp. Congregate housing is health care related if it is an assisted, independent group-living environment operated by a health care facility licensed under chapter 34-12 which offers residential accommodations and supporting services primarily for persons at least sixty-two years of age or disabled as defined under chapter 10-6A. Supporting services must include the ability to provide health care and must include a food service which provides a balanced nutrition program. Such health care facility must admit all persons for treatment consistent with the facility's ability to provide medical services required by the patient until such facility is filled to its ordinary capacity and must conform to all regulations of and permit inspections by the South Dakota Department of Health."

Moved by:      Representative Koskan

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Second by:      None
Action:      Failed for lack of a second..

MOTION:      PREVIOUS MOTION TO AMEND HB 1171

Action:      Prevailed by roll call vote.   (8-5-0-0)

Voting yes:      Apa, Diedrich, Koskan, Napoli, Peterson (Bill), Barker, Moore, Cutler

Voting no:      Belatti, Brown (Richard), Kazmerzak, Waltman, Wick

MOTION:      DO PASS HB 1171 AS AMENDED

Moved by:      Representative Napoli
Second by:      Representative Cutler
Action:      Failed by roll call vote.   (6-7-0-0)

Voting yes:      Apa, Koskan, Napoli, Barker, Moore, Cutler

Voting no:      Belatti, Brown (Richard), Diedrich, Peterson (Bill), Kazmerzak, Waltman, Wick

MOTION:      AS AMENDED WITHOUT RECOMMENDATION

Moved by:      Representative Cutler
Second by:      Representative Moore
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION DEFER HB 1171 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Brown (Richard)
Second by:      Representative Belatti
Action:      Failed by roll call vote.   (5-8-0-0)

Voting yes:      Belatti, Brown (Richard), Kazmerzak, Waltman, Wick

Voting no:      Apa, Diedrich, Koskan, Napoli, Peterson (Bill), Barker, Moore, Cutler

MOTION:      PREVIOUS MOTION AS AMENDED WITHOUT RECOMMENDATION

Action:      Prevailed by roll call vote.   (8-5-0-0)

Voting yes:      Apa, Diedrich, Koskan, Napoli, Peterson (Bill), Barker, Moore, Cutler

Voting no:      Belatti, Brown (Richard), Kazmerzak, Waltman, Wick

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Chair Cutler assumed the chair.

MOTION:      ADJOURN

Moved by:      Representative Brown (Richard)
Second by:      Representative Koskan
Action:      Prevailed by voice vote.

Jenelle Busse

Committee Secretary

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