73rd Legislative Session -- 1998

Committee: House State Affairs

Wednesday, February 4, 1998

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Broderick
P      Brown (Richard)
P      Cutler
P      Hagg
P      Hunt
P      Jorgensen
P      Roe
P      Haley
P      Koetzle
P      Lucas
P      Schaunaman
P      Pederson (Gordon), Vice-Chair
P      Gabriel, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chairman Larry E. Gabriel.


MOTION:      TO APPROVE THE MINUTES OF FEBRUARY 2, 1998.

Moved by:      Representative Pederson (Gordon)
Second by:      Representative Cutler
Action:      Prevailed by voice vote.

HB 1160 AND HB 1142 WERE DEFERRED UNTIL MONDAY, FEBRUARY 9, 1998.


          HB 1066:   to repeal certain statutes concerning the confidentiality of certain information resulting from the examination, investigation, or audit of private entities.

Proponents:      Senator Bernie Hunhoff, sponsor
          Dave Bordewyk, lobbyist, SD Newspaper Association
Opponents:      John Brown, lobbyist, SD Consumer Finance Association


Presented by:      Representative Caitlin Collier, prime sponsor

MOTION:      DO PASS HB 1066

Moved by:      Representative Haley
Second by:      Representative Lucas
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION DEFER HB 1066 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Representative Jorgensen
Second by:      Representative Hunt
Action:      Prevailed by roll call vote.   (9-4-0-0)

Voting yes:      Broderick, Brown (Richard), Cutler, Hagg, Hunt, Jorgensen, Roe, Pederson (Gordon), Gabriel

Voting no:      Haley, Koetzle, Lucas, Schaunaman

          HB 1017:   to limit annual property assessment increases.

Proponents:      Marie Ingalls, lobbyist, Farm Bureau
Opponents:      Jim Fry, Department of Revenue
          Dennis Hanson, lobbyist, SD Association of County Commissioners
Presented by:      Representative Cheryl Madden, prime sponsor

MOTION:      AMEND HB 1017

f-1017

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

"      Section  1.  That § 10-3-41 be amended to read as follows:
     10-3-41.   The director of equalization shall make the necessary adjustments to the valuations before the notice of assessment pursuant to §   10-6-50, so that the median level of assessment represents at least eighty-five percent of market value as determined by the Department of Revenue.

     Section  2.  That § 10-6-33.6 be amended to read as follows:
     10-6-33.6.   If the median value per acre in an identifiable region within a county deviates by more than ten percent from the county average, the county director of equalization may establish a separate market value per acre for the land defined by the director of equalization within that region.

     Section  3.  That § 10-6-33.8 be amended to read as follows:
     10-6-33.8.   The median sales to assessment ratio of all real property may not be less than shall be eighty-five percent or more than one hundred percent of the market value .



     Section  4.  That § 10-6-33.12 be amended to read as follows:
     10-6-33.12.   For the purposes of §   §   10-6-33.8 and 10-6-33.9, there shall be a separate median sales to assessment ratio and coefficient of dispersion for agricultural and nonagricultural real property.

     Section  5.  That § 10-6-33.13 be amended to read as follows:
     10-6-33.13.   The secretary of revenue may promulgate rules pursuant to chapter 1-26 concerning the:

             (1)      Collection and tabulation of information required to determine median appraisal or sales assessment ratio, and coefficient of dispersion;
             (2)      Criteria to be included in a compliance audit of assessment practices; and
             (3)      Conditions under which a certificate of compliance may be issued to a county.

     Section  6.  That § 10-11-58 be amended to read as follows:
     10-11-58.   In order to determine the average level of assessment in each county the secretary of revenue shall compute the median ratio. The median ratio is the middle value in the array of ratios of assessed valuations to sales, from the highest to the lowest for the current year and one year preceding the assessment year. If there are fewer than ten sales, medians ratios may, in the case of agricultural land, be determined by bridging sales information from adjoining counties or in the case of nonagricultural land from other municipalities.

     Section  7.  That § 10-11-59 be amended to read as follows:
     10-11-59.   In order to determine the degree of assessment uniformity and compliance in the assessment of property within each county, the secretary of revenue shall compute the coefficient of dispersion. The coefficient of dispersion is the percentage which the average of the deviation of the assessment ratio of individual sale properties bears to their median ratio.

     Section  8.  That § 10-12-42 be amended to read as follows:
     10-12-42.   For taxes payable in 1997 and each year thereafter, the levy for the general fund of a school district shall be as follows:

             (1)      The maximum tax levy shall be sixteen dollars and forty-nine cents per thousand dollars of taxable valuation subject to the limitations on agricultural property as provided in subdivision (2) of this section and owner-occupied property as provided for in subdivision (3) of this section;
             (2)      The maximum tax levy on agricultural property for such school district shall be five dollars and sixty-six cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in chapter 10-13, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies;
             (3)      The maximum tax levy for an owner-occupied single-family dwelling as defined in §   10-13-40, for such school district may not exceed nine dollars and six cents per thousand dollars of taxable valuation. If the district's levies are less than the maximum levies as stated in chapter 10-13, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies.
     All levies in this section shall be imposed on valuations where the median level of assessment represents eighty-five percent of market value as determined by the Department of Revenue. These

valuations shall be used for all school funding purposes. If the district has imposed an excess levy pursuant to §   10-13-43, the levies shall maintain the same proportion to each other as represented in the mathematical relationship at the maximum levies in this section. The school district may elect to tax at less than the maximum amounts set forth in this section.

     Section  9.  That § 10-13-37 be amended to read as follows:
     10-13-37.   Property taxes shall be levied on valuations where the median level of assessment represents eighty-five percent of the market value as determined by the Department of Revenue. "



Moved by:      Representative Hagg
Second by:      Representative Brown (Richard)
Action:      Was not acted on.

MOTION:      DEFER HB 1017 AND THE PENDING AMENDMENT UNTIL WEDNESDAY, FEBRUARY 11.

Moved by:      Representative Jorgensen
Second by:      Representative Hunt
Action:      Prevailed by voice vote.

          HB 1267:   to create a workers' compensation scholarship fund.

Proponents:      Paul Aylward, lobbyist, AFL-CIO and AFSCME, Huron
Opponents:      Ray Trankle, lobbyist, Industry and Commerce Association
Presented by:      Representative Gil Koetzle, prime sponsor

MOTION:      AMEND HB 1267

z-1267

     On page 1 , delete line 5 of the printed bill .

     On page 1 , line 6 , delete " scholarships " and insert " Scholarships shall be provided " .

     On page 1 , line 9 , delete " The workers' " .

     On page 1 , delete line 10 .


Moved by:      Representative Lucas
Second by:      Representative Schaunaman
Action:      Prevailed by voice vote.

MOTION:      DO PASS HB 1267 AS AMENDED

Moved by:      Representative Lucas
Second by:      Representative Haley
Action:      Prevailed by roll call vote.   (8-5-0-0)

Voting yes:      Broderick, Cutler, Hagg, Haley, Koetzle, Lucas, Schaunaman, Gabriel

Voting no:      Brown (Richard), Hunt, Jorgensen, Roe, Pederson (Gordon)

MOTION:      TO AMEND TITLE OF HB 1267

o-1267

     On page 1 , line 1 of the printed bill , delete everything after " to " and insert " provide for scholarships for certain persons receiving workers' compensation benefits. " .


Moved by:      Representative Haley
Second by:      Representative Hunt
Action:      Prevailed by voice vote.

          HJR 1006:   Proposing and submitting to the electors at the next general election an amendment to Article XI of the Constitution of the State of South Dakota, relating to revenue and expenditure limits of certain units of government in South Dakota.

Proponents:      Mike Held, lobbyist, SD Farm Bureau
Opponents:      Bob Stevens, lobbyist, South Dakota Education Association
Presented by:      Representative Hal Wick, prime sponsor

MOTION:      AMEND HJR1006

o-j1006

     On page 2 , line 15 of the printed resolution , before " . " insert " or accomplished by reduction in taxes that local governments may levy in an amount at least equal to the tax revenues as provided in §  15 of this Article " .


Moved by:      Representative Cutler
Second by:      Representative Hunt
Action:      Prevailed by voice vote.

MOTION:      DEFER HJR1006 UNTIL MONDAY, FEBRUARY 9.

Moved by:      Representative Hunt
Second by:      Representative Broderick
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION DEFER HJR1006 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Representative Lucas
Second by:      Representative Haley
Action:      Prevailed by roll call vote.   (9-4-0-0)

Voting yes:      Broderick, Brown (Richard), Hagg, Jorgensen, Roe, Haley, Koetzle, Lucas, Pederson (Gordon)

Voting no:      Cutler, Hunt, Schaunaman, Gabriel

          HB 1260:   to provide increased authority to the Board of Economic Development to encourage loans in municipalities with a population of less than two thousand.

Comments by:      Representative Gil Koetzle (handout 1)

MOTION:      DEFER HB 1260 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Representative Roe
Second by:      Representative Haley
Action:      Prevailed by roll call vote.   (13-0-0-0)

Voting yes:      Broderick, Brown (Richard), Cutler, Hagg, Hunt, Jorgensen, Roe, Haley, Koetzle, Lucas, Schaunaman, Pederson (Gordon), Gabriel

          HB 1174:   to revise certain solid waste reduction goals and landfill bans.

Comments by:      Representative Kay Jorgensen for the sub-committee
          Terry Keller, Solid Waste Management Association
          LuAnne Napton, lobbyist, SD Resources Coalition
          Bill Huebner, self, Rapid City
          Dick Tieszen, lobbyist, SD Waste Management

MOTION:      AMEND HB 1174

o-1174b

     On the previously adopted amendment (o-1174c) in the second paragraph of the new material being added to page 4 of the printed bill, after " goal. " insert " Appropriate methods and technology includes recycling facilities. "


Moved by:      Representative Jorgensen
Second by:      Representative Hagg
Action:      Prevailed by voice vote.

MOTION:      AMEND HB 1174

o-1174e

     On page 2 , line 15 of the printed bill , delete " landfill's " .

     On page 4 , delete lines 11 to 17 , inclusive .


Moved by:      Representative Jorgensen
Second by:      Representative Hagg
Action:      Prevailed by voice vote.

MOTION:      DO PASS HB 1174 AS AMENDED

Moved by:      Representative Hagg
Second by:      Representative Roe
Action:      Prevailed by roll call vote.   (7-6-0-0)

Voting yes:      Brown (Richard), Hagg, Roe, Haley, Lucas, Pederson (Gordon), Gabriel

Voting no:      Broderick, Cutler, Hunt, Jorgensen, Koetzle, Schaunaman

MOTION:      ADJOURN

Moved by:      Representative Pederson (Gordon)
Second by:      Representative Hunt
Action:      Prevailed by voice vote.



Clara Shelbourn

_________________________________

Committee Secretary
Larry E. Gabriel, Chair


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