73rd Legislative Session -- 1998
Committee: House Commerce
Tuesday, February 10, 1998
P - Present
E - Excused
A - Absent
Roll Call
P
Fischer-Clemens
P
Gleason
P
Schaunaman
P
Sperry
P
Broderick
P
Brown (Gary)
P
Brown (Jarvis)
P
Konold
P
Rost
P
Smidt
P
Windhorst
P
Pederson (Gordon), Vice-Chair
P
Roe, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Chair Roe
MOTION:
TO APPROVE THE MINUTES OF February 5
Moved by:
Representative Pederson (Gordon)
Second by:
Representative Smidt
Action:
Prevailed by voice vote.
HB 1214:
to require continuation and conversion of health care coverage when an
employer ceases operations.
Proponents:
Representative Munson, Sponsor
Opponents:
Dick Tieszen, Self Insured Employees of SD
MOTION:
DO PASS HB 1214
Moved by:
Representative Brown (Jarvis)
Second by:
Representative Smidt
Action:
Prevailed by roll call vote.
(8-5-0-0)
Voting yes:
Fischer-Clemens, Gleason, Schaunaman, Sperry, Broderick, Brown (Gary), Brown
(Jarvis), Smidt
Voting no:
Konold, Rost, Windhorst, Pederson (Gordon), Roe
HB 1175:
to provide for the reasonable compensation for warranty services
performed by dealers selling agricultural and industrial equipment.
Proponents:
Representatiave McNenny, Sponsor
Steve Marcus, Retail Farm Equipment, Huron, SD
Dennis Van Werff, Self, Plaatte, SD
David Hersrud, Self, Sturgis
Chuck Schroyor, Retail Farm Equipment, Pierre, SD
Opponents:
Bill Dougherty, Int Farm Equipment Assn
Ray Trankle, ICA of SD
MOTION:
AMEND HB 1175
j-1175a
On page
1
,
line
4 of the printed bill
,
delete "
or industrial
"
.
On page
1
,
line
4
,
after "
equipment
"
insert "
as exempted from registration and licensing by
§
§
32-5-1.3 and 32-5-1.4
"
.
On page
1
,
line
5
,
delete "
adequately
"
.
Moved by:
Representative Schaunaman
Second by:
Representative Gleason
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1175 AS AMENDED
Moved by:
Representative Schaunaman
Second by:
Representative Broderick
Action:
Failed by roll call vote.
(4-9-0-0)
Voting yes:
Gleason, Schaunaman, Brown (Jarvis), Roe
Voting no:
Fischer-Clemens, Sperry, Broderick, Brown (Gary), Konold, Rost, Smidt,
Windhorst, Pederson (Gordon)
MOTION:
SUBSTITUTE MOTION DEFER HB 1175 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Broderick
Second by:
Representative Fischer-Clemens
Action:
Prevailed by roll call vote.
(10-3-0-0)
Voting yes:
Fischer-Clemens, Sperry, Broderick, Brown (Gary), Brown (Jarvis), Konold, Rost,
Smidt, Windhorst, Pederson (Gordon)
Voting no:
Gleason, Schaunaman, Roe
HB 1314:
to provide consumer protection for members of managed care plans.
Proponents:
Representative Hunt, Sponsor
Representative Eccarius, Co Sponsor
Senator Kloucek
Dean Krogman, SDSMA
Dennis Duncan, Dakotacare
Jim Hood, SDCA
Opponents:
Randy Moses, Div of Insurance
Darla Pollman Rogers, Health Insurance Assn of America
MOTION:
AMEND HB 1314
x-1314
On page
3
,
delete lines
13
and
14 of the printed bill
,
and insert:
"
Section 2. Health care contracts shall describe the health care services offered by the managed
care organization and shall contain:
"
On page
4
,
line
6
,
delete "
and
"
and insert ";".
On page
4
,
delete line
7
.
On page
4
,
line
18
,
delete "
general
"
.
On page
5
,
line
13
,
after "
coinsurance
"
insert "
or payment for noncovered services
"
.
Moved by:
Representative Broderick
Second by:
Representative Brown (Gary)
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1314 AS AMENDED
Moved by:
Representative Pederson (Gordon)
Second by:
Representative Rost
Action:
Prevailed by roll call vote.
(13-0-0-0)
Voting yes:
Fischer-Clemens, Gleason, Schaunaman, Sperry, Broderick, Brown (Gary), Brown
(Jarvis), Konold, Rost, Smidt, Windhorst, Pederson (Gordon), Roe
HB 1125:
to require health benefit plans to cover previously uninsurable
individuals.
Proponents:
Representative Fischer-Clemens, Sponsor(Handout)
Gary Schelske, Self, Menno
Larry Swenson, Sioux Falls, (Handout)
Senator Kloucek
Opponents:
Dick Gregerson, BCBS
Dick Tieszen, State Farm Insurance
Randy Moses, Div of Insurance
MOTION:
AMEND HB 1125
j-1125c
On the printed bill,
delete everything after the enacting clause and insert:
"
Section 1. Terms used in this Act mean:
(1) "Association," the comprehensive health association established by section 2 of this Act;
(2) "Association policy," an individual or group policy issued by the association that provides
the coverage specified in section 16 of this Act;
(3) "Carrier," any person that provides health insurance in the state, including an insurance
company, a prepaid hospital or medical service plan, a health maintenance organization,
a multiple employer welfare arrangement, and any other entity providing a plan of health
insurance or health benefits subject to state insurance regulation;
(4) "Director," the director of the Division of Insurance;
(5) "Eligible expenses," the usual, customary, and reasonable charges for the health care
services specified in section 16 of this Act;
(6) "Health care facility," a health care facility licensed pursuant to chapter 34-12;
(7) "Health insurance," as defined in
§
58-9-3;
(8) "Health insurance trust fund," the fund created in section 15 of this Act;
(9) "Insured," an individual who is provided qualified comprehensive health insurance under
an association policy, which policy may include dependents and other covered persons;
(10) "Medicaid," the federal-state assistance program established under Title XIX of the
federal Social Security Act;
(11) "Medicare," the federal government health insurance program established under Title
XVIII of the Social Security Act;
(12) "Policy," a contract, policy, or plan of health insurance;
(13) "Policy year," a consecutive twelve-month period during which a policy provides or
obligates the carrier to provide health insurance.
Section 2. There is established a nonprofit corporation known as the Comprehensive Health
Insurance Association which shall assure that health insurance, as limited by sections 16 and 17 of
this Act, is made available to each eligible South Dakota resident who applies to the association for
coverage. Any carrier providing health insurance or health care services in South Dakota shall be
a member of the association. The association shall operate under a plan of operation established and
approved under section 4 of this Act and shall exercise its powers through a board of directors
established under section 3 of this Act.
Section 3. The board of directors of the association shall consist of four members selected by the
members of the association, from its membership; four public members selected by the Governor;
the director; and two members of the Legislature, one of whom shall be appointed by the speaker
of the house and one of whom shall be appointed by the president pro tempore of the senate, who
shall be ex officio and nonvoting members. The Governor's appointees shall be chosen from a broad
cross-section of the residents of this state.
Members of the board may be reimbursed from the moneys of the association for expenses
incurred by them as members, but may not be otherwise compensated by the association for their
services.
Section 4. The association shall submit to the director a plan of operation for the association and
any amendments necessary or suitable to assure the fair, reasonable, and equitable ad- ministration
of the association. The plan of operation becomes effective upon approval in writing by the director
before the date on which the coverage under this Act shall be made available. After notice and
hearing, the director shall approve the plan of operation if the plan is determined to be suitable to
assure the fair, reasonable, and equitable administration of the association, and provides for the
sharing of association losses, if any, on an equitable and proportionate basis among the member
carriers. If the association fails to submit a suitable plan of operation within one hundred eighty days
after the appointment of the board of directors, or if at any later time the association fails to submit
suitable amendments to the plan, the director shall adopt, pursuant to chapter 1-26, rules to provide
for a plan of operation. The rules shall continue in force until modified by the director or superseded
by a plan submitted by the association and approved by the director. In addition to other
requirements, the plan of operation shall provide for all of the following:
(1) The handling and accounting of assets and moneys of the association;
(2) The amount and method of reimbursing members of the board;
(3) Regular times and places for meetings of the board of directors;
(4) Records to be kept of all financial transactions, and the annual fiscal reporting to the
director;
(5) Procedures for selecting the board of directors and submitting the selections to the
director for approval;
(6) Establishing, in cooperation with the director and the commissioner of the Bureau of
Finance and Management, procedures for the determination and payment to the
association from the health insurance trust fund. If funds deposited in the health insurance
trust fund are insufficient to pay all of the losses, the commissioner of the Bureau of
Finance and Management shall notify the director and the association of the amount of
the deficiency;
(7) Procedures for assessing the members in proportion to their respective shares of total
health insurance premiums or payments;
(8) The periodic advertising of the general availability of health insurance coverage from the
association;
(9) Additional provisions necessary or proper for the execution of the powers and duties of
the association.
Section 5. The plan of operation may provide that the powers and duties of the association may
be delegated. A delegation under this section takes effect only upon the approval of both the board
of directors and the director. The director may not approve a delegation unless the protections
afforded to the insured are substantially equivalent to or greater than those provided under this Act.
Section 6. The association has the general powers and authority enumerated by this section and
executed in accordance with the plan of operation approved by the director under section 4 of this
Act. The association has the general powers and authority granted under the laws of this state to
carriers licensed to issue health insurance. In addition, the association may do any of the following:
(1) Enter into contracts as necessary or proper to carry out this Act;
(2) Sue or be sued, including taking any legal action necessary or proper for recovery of any
assessments for, on behalf of, or against participating carriers;
(3) Take legal action necessary to avoid the payment of improper claims against the
association or the coverage provided by or through the association;
(4) Establish or utilize a medical review committee to determine the reasonably appropriate
level and extent of health care services in each instance;
(5) Establish appropriate rates, scales of rates, rate classifications, and rating adjustments,
which rates may not be unreasonable in relation to the coverage provided and the
reasonable operations expenses of the association;
(6) Pool risks among members;
(7) Issue association policies on an indemnity or provision of service basis providing the
coverage required by this Act;
(8) Administer separate pools, separate accounts, or other plans or arrangements considered
appropriate for separate members or groups of members;
(9) Operate and administer any combination of plans, pools, or other mechanisms considered
appropriate to best accomplish the fair and equitable operation of the association;
(10) Appoint from among members appropriate legal, actuarial, and other committees as
necessary to provide technical assistance in the operation of the association, policy and
other contract design, and any other functions within the authority of the association;
(11) Hire independent consultants as necessary;
(12) Develop a method of advising applicants of the availability of other coverages outside the
association and establish a list of health conditions the existence of which would make
an applicant eligible without demonstrating a rejection of coverage by one carrier;
(13) Include in its policies a provision providing for subrogation rights by the association in
a case in which the association pays expenses on behalf of an individual who is injured
or suffers a disease under circumstances creating a liability upon another person to pay
damages to the extent of the expenses paid by the association, but only to the extent the
damages exceed the policy deductible and coinsurance amounts paid by the insured. The
association may waive its subrogation rights if it determines that the exercise of the rights
would be impractical, uneconomical, or would work a hardship on the insured.
Section 7. Rates for coverages issued by the association may not be unreasonable in relation to
the benefits provided, the risk experience, and the reasonable expenses of providing coverage.
Separate scales of rates based on age may apply for individual risks. Rates shall take into
consideration the extra morbidity and administration expenses, if any, for risks insured in the
association. The rates for a given classification may not be more than one hundred fifty percent of
the average premium or payment rate for that classification charged by the five carriers with the
largest health insurance premium or payment volume in the state during the preceding calendar year.
In determining the average rate of the five largest carriers, the rates or payments charged by the
carriers shall be actuarially adjusted to determine the rate or payment that would have been charged
for benefits similar to those issued by the association.
Section 8. Following the close of each calendar year, the association shall determine the net
premiums and payments, the expenses of administration, and the incurred losses of the association
for the year. The association shall certify the amount of any net loss for the preceding calendar year.
Assessments shall be made by the association to all members in proportion to their respective shares
of total health insurance premiums or payments for subscriber contracts received in South Dakota
during the second preceding calendar year, or with paid losses in the year, coinciding with or ending
during the calendar year or on any other equitable basis as provided in the plan of operation. In
sharing losses, the association may abate or defer in any part the assessment of a member, if, in the
opinion of the board, payment of the assessment would endanger the ability of the member to fulfill
its contractual obligations. The association may also provide for an initial or interim assessment
against members of the association if necessary to assure the financial capability of the association
to meet the incurred or estimated claims expenses or operating expenses of the association until the
next calendar year is completed. Net gains shall be held at interest to offset future losses or allocated
to reduce future premiums.
Section 9. The association shall conduct periodic audits to assure the general accuracy of the
financial data submitted to the association, and the association shall have an annual audit of its
operations made by an independent certified public accountant.
Section 10. The association is subject to examination by the director. Not later than April
thirtieth of each year, the board of directors shall submit to the director a financial report for the
preceding calendar year in a form approved by the director.
Section 11. The association is subject to oversight by the Interim Appropriations Committee. Not
later than April 30 of each year, the board of directors shall submit to the Interim Appropriations
Committee a financial report for the preceding year in a form approved by the committee.
Section 12. All policy forms issued by the association shall be filed with and approved by the
director before their use.
Section 13. The association may not issue an association policy to an individual who, on the
effective date of the coverage applied for, has not been rejected for, already has, or will have
coverage similar to an association policy, as an insured or covered dependent.
Section 14. The association is exempt from payment of all fees and all taxes levied by this state
or any of its political subdivisions.
Section 15. A health insurance trust fund is created within the state treasury. Any assessments
paid by association members shall be deposited in the fund. Any balance remaining in the health
insurance trust fund shall be retained in the fund together with any interest or earnings that are
earned on the balance and may be used to cover future expenses of the association.
Moneys deposited in the health insurance trust fund may be invested by the treasurer of state
in the same manner as moneys in the general fund.
Section 16. The association policy shall pay only the usual, customary, and reasonable charges
for medically necessary eligible health care services which exceed the deductible and coinsurance
amounts applicable under section 18 of this Act. Eligible expenses are the charges for the following
health care services furnished by a health care provider in an emergency situation or furnished or
prescribed by a health care provider:
(1) Hospital services, including charges for the most common semiprivate room, for the most
common private room if semiprivate rooms do not exist in the health care facility, or for
the private room if medically necessary, but limited to a total of one hundred eighty days
in a calendar year;
(2) Professional services for the diagnosis or treatment of injuries, illnesses, or conditions,
other than mental or dental, which are rendered by a health care provider, or at the
direction of a health care provider, by a staff of registered nurses, licensed practical
nurses, or other health care providers;
(3) The first twenty professional visits for the diagnosis or treatment of one or more mental
conditions, rendered during a calendar year by one or more health care providers, or at
their direction, by their staff of registered nurses, licensed practical nurses, or other health
care providers;
(4) Drugs and contraceptive devices requiring a prescription;
(5) Services of a nursing facility, for not more than one hundred eighty days in a calendar
year;
(6) Homemaker-home health services up to one hundred eighty days of service in a calendar
year;
(7) Use of radium or other radioactive material;
(8) Oxygen;
(9) Anesthetics;
(10) Prostheses, other than dental;
(11) Rental of durable medical equipment, other than eye glasses and hearing aids, which have
no personal use in the absence of the condition for which prescribed;
(12) Diagnostic X rays and laboratory tests;
(13) Oral surgery for any of the following:
(a) Excision of partially or completely erupted impacted teeth;
(b) Excision of a tooth root without the extraction of the entire tooth;
(c) The gums and tissues of the mouth when not performed in connection with the
extraction or repair of teeth;
(14) Services of a physical therapist and services of a speech therapist;
(15) Professional ambulance services to the nearest health care facility qualified to treat the
illness, injury, or condition;
(16) Processing of blood, including collecting, testing, fractionating, and distributing blood.
Section 17. Eligible expenses do not include any of the following:
(1) Services for which a charge is not made in the absence of insurance or for which there is
no legal obligation on the part of a patient to pay;
(2) Services and charges made for benefits provided under the laws of the United States,
including Medicare and Medicaid, military service-connected disabilities, medical
services provided for members of the armed forces and their dependents or for employees
of the armed forces of the United States, and medical services financed on behalf of all
citizens by the United States. However, the association policy shall pay benefits as a
primary payer in any case where benefit coverage provided under the laws of the United
States, including Medicare and Medicaid, or under the laws of this state is, by rule or
statute, secondary to all other coverages;
(3) Benefits which would duplicate the provision of services or payment of charges for any
care for an injury, disease, or condition for which either of the following applies:
(a) It arises out of and in the course of an employment subject to a workers'
compensation or similar law;
(b) Benefits payable without regard to fault under a coverage required to be contained
in any motor vehicle or other liability insurance policy or equivalent self-insurance.
(4) Care which is primarily for a custodial or domiciliary purpose;
(5) Cosmetic surgery unless provided as the result of an injury or medically necessary
surgical procedure;
(6) Services the provision of which is not within the scope of the license or certificate of the
institution or individual rendering the services;
(7) That part of any charge for services or articles rendered or prescribed by a health care
provider which exceeds the prevailing charge in the locality where the service is provided,
or a charge for services or articles not medically necessary;
(8) Services rendered prior to the effective date of coverage under this plan for the person on
whose behalf the expense is incurred;
(9) Routine physical examinations including examinations to determine the need for eye
glasses and hearing aids;
(10) Illness or injury due to an act of war;
(11) Service of a blood donor and any fee for failure to replace the first three pints of blood
provided to an eligible person each calendar year;
(12) Personal supplies or services provided by a health care facility or any other nonmedical
or nonprescribed supply or service;
(13) Experimental services or supplies. For the purposes of this subdivision, experimental
means a service or supply not recognized by the appropriate medical board as normal
mode of treatment for the illness or injury involved;
(14) Eye surgery if corrective lenses would alleviate the problem.
The coverage and benefit requirements of this section for association policies may not be
altered by any other state law without specific reference to this Act indicating a legislative intent to
add or delete from the coverage requirements of this Act.
This Act does not prohibit the association from issuing additional types of health insurance
policies with different types of benefits which, in the opinion of the board of directors, may be of
benefit to the citizens of the state.
Section 18. Except as provided in section 20 of this Act, an association policy offered in
accordance with this Act shall include a deductible. Deductibles of five hundred dollars and one
thousand dollars on a per person per calendar year basis shall be offered. The board may authorize
deductibles in other amounts. The deductibles shall be applied to the first five hundred dollars, one
thousand dollars, or other authorized amount of eligible expenses incurred by the covered person.
Section 19. Except as provided in section 20 of this Act, a mandatory coinsurance requirement
shall be imposed at the rate of twenty percent of eligible expenses in excess of the mandatory
deductible.
Section 20. The maximum aggregate out-of-pocket payments for eligible expenses by the insured
in the form of deductibles and coinsurance may not exceed in a policy year:
(1) One thousand five hundred dollars for an individual five-hundred-dollar deductible
policy;
(2) Two thousand dollars for an individual one-thousand-dollar deductible policy;
(3) Three thousand dollars for a family five-hundred-dollar deductible policy;
(4) Four thousand dollars for a family one-thousand-dollar deductible policy;
(5) An amount authorized by the board for any other deductible policy.
Section 21. For a family policy, the maximum annual deductible under the policy shall be the
deductible chosen for a maximum of two individuals under the policy.
Section 22. Eligible expenses incurred by a covered person in the last three months of a calendar
year, and applied toward a deductible, shall also be applied toward the deductible amount in the next
calendar year.
Section 23. The lifetime benefit per covered person is two hundred fifty thousand dollars.
Section 24. The association shall, in addition to other policies, offer Medicare supplement
policies designed to supplement Medicare and provide coverage of at least fifty percent of the
deductible and eighty percent of the covered expenses in section 16 of this Act. Medicare
supplement plans are subject to the same limitations on premiums, deductibility, and annual out-
of-pocket expenses as other association policies.
Section 25. Except as otherwise provided in section 29 of this Act, a person is not eligible for
an association policy if the person, at the effective date of coverage, has or will have coverage under
any insurance plan that has coverage equivalent to an association policy. Only persons who have
been residents of this state for at least one year are eligible for an association policy. Coverage under
an association policy is in excess of, and may not duplicate, coverage under any other form of health
insurance.
Section 26. A person is eligible to apply for an association policy only if that person has been
rejected for similar health insurance coverage or is only offered health insurance coverage at a rate
exceeding the association rate.
Section 27. An association policy shall provide that coverage of a dependent unmarried person
terminates when the person becomes nineteen years of age or, if the person is enrolled full time in
an accredited educational institution, terminates at twenty-five years of age. The policy shall also
provide in substance that attainment of the limiting age does not operate to terminate coverage when
the person is and continues to be both of the following:
(1) Incapable of self-sustaining employment by reason of mental retardation or physical
disability; and
(2) Primarily dependent for support and maintenance upon the person in whose name the
contract is issued.
Proof of incapacity and dependency must be furnished to the carrier within one hundred twenty
days of the person's attainment of the limiting age, and subsequently as may be required by the
carrier, but not more frequently than annually after the two-year period following the person's
attainment of the limiting age.
Section 28. An association policy may contain provisions under which coverage is excluded
during a period of six months following the effective date of coverage as to a given covered
individual for preexisting conditions, if either of the following exists:
(1) The condition has manifested itself within a period of six months before the effective date
of coverage in such a manner as would cause an ordinarily prudent person to seek
diagnosis or treatment; or
(2) Medical advice or treatment was recommended or received within a period of six months
before the effective date of coverage.
These preexisting condition exclusions shall be waived to the extent to which similar
exclusions have been satisfied under any prior health insurance coverage which was involuntarily
terminated, if the application for pool coverage is made not later than thirty days following the
involuntary termination. For purposes of this section, involuntary termination includes termination
of coverage when a conversion policy is not available or where benefits under a state or federal law
providing for continuation of coverage upon termination of employment will cease or have ceased.
In that case, coverage in the pool shall be effective from the date on which the prior coverage was
terminated.
This section does not prohibit preexisting conditions coverage in an association policy that is
more favorable to the insured than that specified in this section.
If the association policy contains a waiting period for preexisting conditions, an insured may
retain any existing coverage the person has under an insurance plan that has coverage equivalent to
the association policy for the duration of the waiting period only.
Section 29. An individual is not eligible for coverage by the association if any of the following
apply:
(1) The individual is at the time of application eligible for health care benefits under chapter
28-6;
(2) The individual has terminated coverage by the association within the past twelve months;
or
(3) The individual is an inmate of a public institution or is eligible for public programs for
which medical care is provided.
Section 30. An association policy shall contain provisions under which the association is
obligated to renew the contract until the day on which the individual in whose name the contract is
issued first becomes eligible for Medicare coverage, except that in a family policy covering both
husband and wife, the age of the younger spouse shall be used as the basis for meeting the durational
requirements of this section. However, when the individual in whose name the contract is issued
becomes eligible for Medicare coverage, the person is eligible for the Medicare supplement plan
offered by the association.
Section 31. The association may not change the rates for association policies except on a class
basis with a clear disclosure in the policy of the association's right to do so.
Section 32. An association policy shall provide that upon the death of the individual in whose
name the policy is issued, every other individual then covered under the contract may elect, within
a period specified in the policy, to continue coverage under the same or a different policy until such
time as the person would have ceased to be entitled to coverage had the individual in whose name
the policy was issued lived.
Section 33. The director shall adopt rules, pursuant to chapter 1-26, to provide for disclosure by
carriers of the availability of insurance coverage from the association.
Seciton 34. Neither the participation by carriers or members in the association, the establishment
of rates, forms, or procedures for coverage issued by the association, nor any joint or collective
action required by this Act may be the basis of any legal civil action, or criminal liability against the
association or members of it, either jointly or separately.
Section 35. Any carrier authorized to provide health care insurance or coverage for health care
services in South Dakota shall provide a notice that the person is eligible to apply for health
insurance provided by the association and an application for coverage to any person who receives
a rejection of coverage for health insurance or health care services, or to any person who is informed
that a rate for health insurance or coverage for health care services will exceed the rate of an
association policy. Application for the health insurance shall be on forms prescribed by the board
and made available to the carriers.
"
Moved by:
Representative Schaunaman
Second by:
Representative Gleason
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1125 AS AMENDED
Moved by:
Representative Gleason
Second by:
Representative Schaunaman
Action:
Prevailed by roll call vote.
(7-5-1-0)
Voting yes:
Fischer-Clemens, Gleason, Schaunaman, Broderick, Brown (Gary), Brown (Jarvis),
Smidt
Voting no:
Konold, Rost, Windhorst, Pederson (Gordon), Roe
Excused:
Sperry
MOTION:
TO AMEND TITLE OF HB 1125
j-1125t
On page
1
,
line 1 of the printed bill
,
delete everything after "to"
and insert "
establish a
comprehensive health association to provide insurance coverage to eligible persons.
"
.
On page
1
,
delete line
2
.
Moved by:
Representative Fischer-Clemens
Second by:
Representative Schaunaman
Action:
Prevailed by voice vote.
HB 1151:
to provide for notification and hearing when motor vehicle franchise
agreements are modified or replaced.
Proponents:
Representative Kredit, Sponsor
R.Van Johnson, SD Auto Dealers Assn
MOTION:
AMEND HB 1151
j-1151
On the printed bill,
delete everything after the enacting clause and insert:
"
Section
1.
That chapter 32-6B be amended by adding thereto a NEW SECTION to read as
follows:
A franchisor may not modify a franchise during the terms of the franchise or upon its renewal
if the modification would substantially and adversely affect the dealer's rights, obligations,
investment, or return on investment without giving at least thirty days notice of the proposed
modification to the dealer unless the change is required by law. Within the thirty-day period, the
dealer may file an objection requesting a determination of whether good cause exists for permitting
the proposed modification with the Department of Revenue and serve notice on the franchisor. The
department shall promptly schedule in hearing to be held under the provisions of chapter 1-26 and
decide the matter within sixty days from the date the protest is filed. Multiple protests pertaining to
the same proposed modification shall be consolidated for hearing. The proposed modification may
not take effect with respect to the protesting dealer's franchise pending the determination of the
matter. The written notice shall contain on the first page thereof a conspicuous statement which reads
substantially as follows: 'NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A
PROTEST WITH THE SOUTH DAKOTA DEPARTMENT OF REVENUE IN PIERRE, SOUTH
DAKOTA, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED
MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE WITH A SUCCEEDING
FRANCHISE UNDER THE TERMS OF SOUTH DAKOTA LAW IF YOU OPPOSE THIS
ACTION.'
"
Moved by:
Representative Schaunaman
Second by:
Representative Gleason
Action:
Prevailed by voice vote.
MOTION:
DO PASS HB 1151 AS AMENDED
Moved by:
Representative Brown (Jarvis)
Second by:
Representative Rost
Action:
Prevailed by roll call vote.
(10-2-1-0)
Voting yes:
Fischer-Clemens, Gleason, Schaunaman, Broderick, Brown (Gary), Brown (Jarvis),
Rost, Smidt, Pederson (Gordon), Roe
Voting no:
Konold, Windhorst
Excused:
Sperry
HB 1304:
to prohibit discriminatory pricing of drugs by manufacturers and to
establish a penalty.
Proponents:
Representative Chicoine, Sponsor
Senator Kloucek, Co Sponsor
Opponents:
Dennis Duncan, PHRMA
Harry Christianson, MERCK: Kevin Forsch, Dept of Health
MOTION:
AMEND HB 1304
j-1304
On the printed bill,
delete everything after the enacting clause and insert:
"
Section 1. The Department of Legislative Audit shall conduct a study of closed network health
care providers regarding the unitary pricing of prescription drugs.
"
Moved by:
Representative Broderick
Second by:
Representative Gleason
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DEFER HB 1304 UNTIL THE 36TH LEGISLATIVE
DAY
Moved by:
Representative Broderick
Second by:
Representative Windhorst
Action:
Prevailed by roll call vote.
(9-3-1-0)
Voting yes:
Broderick, Brown (Gary), Brown (Jarvis), Konold, Rost, Smidt, Windhorst,
Pederson (Gordon), Roe
Voting no:
Fischer-Clemens, Gleason, Schaunaman
Excused:
Sperry
SB 57:
to revise certain restrictions of activities of real estate licensees.
Proponents:
Caroline Steirer, SD Assn of Realators
Presented by:
Larry Lyngstad, Real Estate Commission
MOTION:
DO PASS SB 57
Moved by:
Representative Gleason
Second by:
Representative Brown (Gary)
Action:
Prevailed by roll call vote.
(11-0-2-0)
Voting yes:
Fischer-Clemens, Gleason, Schaunaman, Broderick, Brown (Gary), Brown (Jarvis),
Konold, Rost, Smidt, Windhorst, Roe
Excused:
Sperry, Pederson (Gordon)
MOTION:
PLACE SB 57 ON CONSENT
Moved by:
Representative Konold
Second by:
Representative Brown (Jarvis)
Action:
Failed by voice vote.
SB 58:
to revise the requirement for real estate brokers to furnish closing
statements in a real estate transaction.
Proponents:
Caroline Steirer, SD Assn of Realators
Presented by:
Larry Lyngstad, Real Estate Commission
MOTION:
DO PASS SB 58
Moved by:
Representative Fischer-Clemens
Second by:
Representative Gleason
Action:
Prevailed by roll call vote.
(11-0-2-0)
Voting yes:
Fischer-Clemens, Gleason, Schaunaman, Broderick, Brown (Gary), Brown (Jarvis),
Konold, Rost, Smidt, Windhorst, Roe
Excused:
Sperry, Pederson (Gordon)
MOTION:
PLACE SB 58 ON CONSENT
Moved by:
Representative Gleason
Second by:
Representative Fischer-Clemens
Action:
Prevailed by voice vote.
MOTION:
ADJOURN
Moved by:
Representative Broderick
Second by:
Representative Rost
Action:
Prevailed by voice vote.
Margaret Nickels
_________________________________
Committee Secretary
Robert A. Roe, Chair
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