73rd Legislative Session -- 1998

Committee: House State Affairs

Wednesday, February 11, 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 9, 1998.

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

          HB 1300:   to establish certain wage requirements for the recipients of REDI fund loans.

Proponents:      Bernie Hunhoff, sponsor
Opponents:      Chris Braendlin, Governor's Office of Economic Development
          Ray Trankle, lobbyist, Industry and Commerce Association
          Dan Nelson, lobbyist, Sioux Falls Chamber of Commerce
Presented by:      Representative Pat Haley, prime sponsor

MOTION:      DEFER HB 1300 UNTIL THE 36TH LEGISLATIVE DAY



Moved by:      Representative Jorgensen
Second by:      Representative Pederson (Gordon)
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION DO PASS HB 1300

Moved by:      Representative Koetzle
Second by:      Representative Lucas
Action:      Failed by roll call vote.   (4-8-1-0)

Voting yes:      Haley, Koetzle, Lucas, Schaunaman

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

Excused:      Hagg

MOTION:      DEFER HB 1300 UNTIL THE 36TH LEGISLATIVE DAY

Action:      Prevailed by roll call vote.   (8-4-1-0)

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

Voting no:      Haley, Koetzle, Lucas, Schaunaman

Excused:      Hagg

          HB 1017:   to limit annual property assessment increases.

Proponents:      Representative Cheryl Madden, prime sponsor

MOTION:      DEFER HB 1017 AND THE PENDING AMENDMENT UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Representative Lucas
Second by:      Representative Hunt
Action:      Prevailed by roll call vote. (8-4-1-0)

Voting yes:    Broderick, Brown (Richard), Hunt, Jorgensen, Roe, Lucas, Pederson, Gabriel

Voting no:    Cutler, Haley, Koetzle, Schaunaman

Excused:    Hagg


          HB 1256:   to require the successful completion of a driver education class prior to a person receiving a restricted minor's driving permit.

Proponents:      Marie Ingalls, lobbyist, Farm Bureau
          Pat Gonseth, Abate of SD, Sioux Falls
Opponents:      Karon Schaack, Secretary, Department of Education and Cultural Affairs
Presented by:      Representative Mike Jaspers, prime sponsor

MOTION:      AMEND HB 1256

v-1256b

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

"      Section  1.  That chapter 32-5 be amended by adding thereto a NEW SECTION to read as follows:
     A driver education fee of five dollars shall be charged in addition to the license fees, registration fees, and compensation for the use of the highways required by this chapter for the licensure of a noncommercial car, pickup, or van. Governmental entities and their subdivisions are exempt from this fee. The county treasurer shall remit the driver education fee in the manner provided by § 32-11-19. The state shall deposit the fee in the driver education fund.

     Section  2.  That chapter 32-5 be amended by adding thereto a NEW SECTION to read as follows:
     Moneys in the driver education fund shall be used by the Department of Education and Cultural affairs to fund driver education classes which have been approved by the South Dakota Division of Education Services and Resources. The driver education fund shall be budgeted pursuant to chapter 4-7 and appropriated pursuant to chapters 4-8, 4-8A and 4-8B. Disbursements from the driver education fund shall not begin until June 1, 1999.

     Section  3.  That chapter 32-5 be amended by adding thereto a NEW SECTION to read as follows:
     The Secretary of Education and Cultural Affairs shall promulgate rules pursuant to chapter 1-26 providing for the distribution of the driver education funds and establishing instruction standards, teacher or instructor certification standards and course approval procedures. "



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

MOTION:      DO PASS HB 1256 AS AMENDED

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

MOTION:      SUBSTITUTE MOTION TO TABLE HB 1256

Moved by:      Representative Pederson (Gordon)
Second by:      Representative Broderick
Action:      Prevailed by roll call vote.   (9-3-1-0)

Voting yes:      Broderick, Cutler, Jorgensen, Roe, Haley, Lucas, Schaunaman, Pederson (Gordon), Gabriel

Voting no:      Brown (Richard), Hunt, Koetzle

Excused:      Hagg

Vice Chair Gordon Pederson assumed the chair.

          HB 1179:   to provide for a legislative study of a repeal of the video lottery.

Opponents:      Robert Riter, lobbyist, Music and Vending Association
Presented by:      Representative Ron Volesky, prime sponsor

MOTION:      DO PASS HB 1179

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

MOTION:      SUBSTITUTE MOTION AMEND HB 1179
o-1179

     On page 1 , line 4 of the printed bill , delete " appoint an interim " and insert " select an independent research organization " .

     On page 1 , line 5 , delete " legislative committee " .

     On page 1 , line 8 , delete " committee " and insert " organization " .


Moved by:      Representative Brown (Richard)
Second by:      Representative Jorgensen
Action:      Failed by show of hands..

MOTION:      DO PASS HB 1179

Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Brown (Richard), Cutler, Hunt, Roe, Haley, Lucas, Schaunaman

Voting no:      Broderick, Jorgensen, Koetzle, Pederson (Gordon), Gabriel

Excused:      Hagg

Chair Larry Gabriel assumed the chair.

          HB 1291:   to extend unemployment compensation benefits for former employees of Dakota Pork, Inc., of Huron, and to declare an emergency.

Comments by:      Don Kattke, Department of Labor
Presented by:      Representative Ron Volesky, prime sponsor

MOTION:      AMEND HB 1291

o-1291

     On page 1 , delete lines 9 to 16 of the printed bill , inclusive , and insert:

"     Section 2. The unemployment compensation fund created pursuant to §  61-4-1 shall be used as the source of revenue to provide the extended benefits provided by this Act. The payment of extended benefits shall be subject to the provisions of chapter 61-6. "



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

MOTION:      AMEND HB 1291

t-1291

     On page 1 , line 6 of the printed bill , delete everything after " Inc., " and insert " Dakota Cold Storage, or Dakota Shag Service, Inc., located in Huron, South Dakota, " .

     On page 1 , line 7 , delete everything before " who " .


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

MOTION:      DO PASS HB 1291 AS AMENDED

Moved by:      Representative Haley
Second by:      Representative Lucas
Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Hagg, Jorgensen, Haley, Koetzle, Lucas, Schaunaman, Gabriel

Voting no:      Broderick, Bro 01wn (Richard), Cutler, Roe, Pederson (Gordon)

Excused:      Hunt

MOTION:      TO AMEND TITLE OF HB 1291

o-1291t

     On page 1 , line 2 of the printed bill , after " Huron, " insert " and of certain other businesses, " .


Moved by:      Representative Haley
Second by:      Representative Jor
+  
gensen
Action:      Prevailed by voice vote.

          HB 1138:   to revise the transfer of money from the state capital construction fund.

Presented by:      Representative Steve Cutler

MOTION:      DEFER HB 1138 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Representative Cutler
Second by:      Representative Pederson (Gordon)
Action:      Prevailed by roll call vote.   (12-0-1-0)

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

Excused:      Hunt

Vice Chair Pederson assumed the chair.

          HB 1318:   to increase the maximum weekly benefit amount for unemployment compensation.

Opponents:      Don Kattke, Department of Labor (handouts 2 and 3)
Presented by:      Representative Gil Koetzle, prime sponsor (handout 1)

MOTION:      DO PASS HB 1318

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

MOTION:      SUBSTITUTE MOTION DEFER HB 1318 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Representative Roe
Second by:      Representative Brown (Richard)
Action:      Failed by roll call vote.   (6-5-2-0)

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

Voting no:      Hagg, Haley, Koetzle, Lucas, Schaunaman

Excused:      Hunt, Gabriel

MOTION:      DO PASS HB 1318

Action:      Failed by roll call vote.   (5-6-2-0)

Voting yes:      Hagg, Haley, Koetzle, Lucas, Schaunaman

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

Excused:      Hunt, Gabriel

MOTION:      TO TABLE HB 1318

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

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

Voting no:      Hagg, Haley, Koetzle, Lucas, Schaunaman

          HB 1288:   to increase the fee for preparing a garnishment disclosure.

Proponents:      Christie Johnson, lobbyist, School Administrators of South Dakota
          Jerry Wheeler, lobbyist, SD Retailers Association
Opponents:      Dennis Duncan, lobbyist, SD Collectors Association
Presented by:      Larry Gabriel, prime sponsor

MOTION:      DO PASS HB 1288

Moved by:      Representative Roe
Second by:      Representative Schaunaman
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION AMEND HB 1288

o-1288

     On page 1 , line 5 of the printed bill , delete " twenty-five " and insert " fifteen " .


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

MOTION:      DO PASS HB 1288 AS AMENDED

Moved by:      Representative Hagg
Second by:      Representative Jorgensen
Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Broderick, Brown (Richard), Cutler, Hagg, Jorgensen, Haley, Gabriel

Voting no:      Roe, Koetzle, Lucas, Schaunaman, Pederson (Gordon)

Excused:      Hunt

          HB 1325:   to provide for the type of advertising permitted by certain licensed establishments.

Opponents:      Tim Dougherty, lobbyist, SD Retail Liquor Dealers
Presented by:      Representative Kristie Fiegen, prime sponsor

MOTION:      DO PASS HB 1325

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

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

Voting no:      Haley, Koetzle, Lucas, Schaunaman, Pederson (Gordon)

          HB 1294:   to provide notice and benefits to certain employees affected by plant closings and mass layoffs.

MOTION:      DO NOT PASS HB 1294

Moved by:      Representative Pederson (Gordon)
Second by:      Representative Broderick
Action:      Prevailed by roll call vote.   (11-2-0-0)

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

Voting no:      Koetzle, Schaunaman

          HB 1305:   to provide rule-making authority to the Gaming Commission to establish the number of employees required on a premises with limited card games and slot machines.

Presented by:      Representative Kay Jorgensen, prime sponsor

MOTION:      AMEND HB 1305
o-1305

     On page 1 , line 7 of the printed bill , remove the overstrikes from " on the premises and within " .

     On page 1 , line 7 , before " within " overstrike " and " and insert " or " .

     On page 1 , line 7 , after " within " insert " a contiguous premises " .

     On page 1 , line 10 , after " may " insert " also " .


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

MOTION:      DO PASS HB 1305 AS AMENDED

Moved by:      Representative Jorgensen
Second by:      Representative Pederson (Gordon)
Action:      Prevailed by roll call vote.   (12-1-0-0)

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

Voting no:      Lucas

MOTION:      RECONSIDER THE VOTE BY WHICH HJR1006 LOST

Moved by:      Representative Cutler
Second by:      Representative Jorgensen
Action:      Prevailed by roll call vote.   (12-1-0-0)

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

Voting no:      Koetzle

MOTION:      AMEND HJR1006

v-j0

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

"      Section  4.  That at the next general election held in the state, the following amendment to Section 15 of Article VIII of the Constitution of the State of South Dakota, as set forth in section 2 of this Joint Resolution, which is hereby agreed to, shall be submitted to the electors of the state for approval.

     Section  5.  That § 15 of Article VIII of the Constitution of the State of South Dakota be amended to read as follows:

     §   15.   The Legislature shall make such provision by general taxation and by authorizing the school corporations to levy such additional taxes as with the income from the permanent school fund shall secure a thorough and efficient system of common schools throughout the state. The Legislature is empowered to classify properties within school districts into separate classes for purposes of school taxation , and may constitute agricultural property a separate class . Taxes shall be uniform on all property in the same class. "



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

MOTION:      DO PASS HJR1006 AS AMENDED

Moved by:      Representative Pederson (Gordon)
Second by:      Representative Cutler
Action:      Prevailed by roll call vote.   (11-2-0-0)

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

Voting no:      Roe, Koetzle

MOTION:      TO AMEND TITLE OF HJR1006

o-j1006t

     On page 1 , line 2 of the printed resolution , delete " Article XI " and insert " Article VIII " .

     On page 1 , delete line 3 , and insert " classification of property for purposes of taxation. " .


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

Chair Larry Gabriel assumed the chair.

          HB 1142:   to allow joint ventures and other arrangements among telecommunications companies to assist in the provisioning of the South Dakota Public Communications Network Infrastructure.

Proponents:      Jeremiah Murphy, lobbyist, U.S. West
Opponents:      Loren Hiatt, lobbyist, AT&T (handout 4)
          Brian Meyer, lobbyist, SD Association ot Telephone Cooperatives
          Jim Burg, PUC Chairman
          Warren May, lobbyist, McLeod, USA Telecommunications (handout 5)
          Pam Nelson, PUC
Comments by: Rolayne Wiest, PUC
Presented by:      Representative Larry Gabriel, prime sponsor

An amendment was pending from the last hearing on HB 1142.

MOTION:      SUBSTITUTE MOTION AMEND HB 1142
o-1142

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

"      Section 1. It is the intent of the Legislature to encourage telecommunications companies to more efficiently meet the infrastructure deployment goal described in § §  49-31-60 to 49-31-68, inclusive, for a fully integrated SONET backbone of interconnected survivable rings. To that end, telecommunications companies may jointly provide facilities and enter into revenue-pooling arrangements between and among themselves relating to the provisioning of these facilities. Any such arrangement shall be subject to commission review and approval and, to the extent it has received such approval, may not be construed as violating any state or local laws governing unfair trade practices, antitrust or restraint of trade. Further, it is the intent of the Legislature that any such approved arrangement shall be exempt from federal laws governing unfair trade practices, antitrust, or restraint of trade. Except with respect to such joint provisioning of facilities and revenue pooling arrangements approved by the commission, both state and federal laws governing unfair trade practices, antitrust, and restraint of trade shall apply with full force and effect. The joint provisioning of facilities within an arrangement consistent with the limited purpose described in this section may

not be construed as imposing additional common carrier obligations on the participating companies. The provisions of this section may not be construed to permit any telecommunications company to take any action that is contrary to the public interest.

     Section 2. It is in the public interest and essential that local exchange telecommunication companies over all of South Dakota continue to be viable providers of affordable local exchange services. Local exchange telecommunication companies receive substantial revenue necessary to support the exchange from a minority of their customers. Local exchange telecommunication companies must be allowed to compete to keep their profitable customers in order to maintain the viability of local exchanges.

    Notwithstanding any other provisions of chapter 49-31, except section 4 of this Act, any telecommunication company may grant any discounts, incentives, services, or other business practices necessary to meet competition. Nothing in chapter 49-31 restricts or prevents telecommunication companies from offering reduced prices and special terms and conditions for this state, its existing instrumentalities and subdivisions, for the United States and for K through 12 schools accredited by the secretary of the Department of Education and Cultural Affairs.

     Section 3. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as follows:

     Any regulation of telecommunications service by the commission pursuant to chapters 49-13 and 49-31 shall be fair, reasonable, nondiscriminatory and applicable to all telecommunications carriers providing service in the state by rules adopted by the commission pursuant to chapter 1-26.

     Section 4. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as follows:

     Prices for residential and business local exchange service, both recurring and nonrecurring, for a telecommunications company with more than two hundred thousand retail access lines in the state may not be changed unless reduced by the company. The provisions of § 49-31-4 and § § 49-31- 21 to 49-31-12.5, inclusive, do not apply to prices for services regulated by this section.

     Section 5. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as follows:

    Dialing parity, as defined in 47 U.S.C. § 153 (15) as of January 1, 1998, for purposes of intraLATA long distance telecommunications services, may not be implemented by order of the commission until all providers of toll services are authorized to provide interLATA services which originate in this state. "



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

MOTION:      AMEND HB 1142

o-1142a

          Delete section 1 of the previously adopted amendment (o-1142).


Moved by:      Representative Lucas
Second by:      Representative Pederson (Gordon)
Action:      Failed by voice vote.

MOTION:      DO PASS HB 1142 AS AMENDED

Moved by:      Representative Broderick
Second by:      None
Action:      Died for a lack of a second

MOTION:      AMEND HB 1142

o-1142b

     In the first sentence of section 4 of the previously adopted amendment (o-1142), after " Prices " insert " as of January 1,1998 " .


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

MOTION:      DO PASS HB 1142 AS AMENDED

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

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

Voting no:      Haley, Koetzle, Lucas, Schaunaman, Pederson (Gordon)

MOTION:      TO AMEND TITLE OF HB 1142

o-1142t

     On page 1 , line 1 of the printed bill , delete everything after " to " and insert " revise certain provisions regarding the regulation of telecommunication companies and telecommunication services. " .

     On page 1 , delete lines 2 and 3 .


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

          HB 1160:   to revise certain provisions regarding the regulation of telecommunication companies.



MOTION:      AMEND HB 1160

o-1160a

     On page 17 , after line 5 of the printed bill , insert:

"      Section 31. It is the intent of the Legislature to encourage telecommunications companies to more efficiently meet the infrastructure deployment goal described in § §  49-31-60 to 49-31-68, inclusive, for a fully integrated SONET backbone of interconnected survivable rings. To that end, telecommunications companies may jointly provide facilities and enter into revenue-pooling arrangements between and among themselves relating to the provisioning of these facilities. Any such arrangement shall be subject to commission review and approval and, to the extent it has received such approval, may not be construed as violating any state or local laws governing unfair trade practices, antitrust or restraint of trade. Further, it is the intent of the Legislature that any such approved arrangement shall be exempt from federal laws governing unfair trade practices, antitrust, or restraint of trade. Except with respect to such joint provisioning of facilities and revenue pooling arrangements approved by the commission, both state and federal laws governing unfair trade practices, antitrust, and restraint of trade shall apply with full force and effect. The joint provisioning of facilities within an arrangement consistent with the limited purpose described in this section may not be construed as imposing additional common carrier obligations on the participating companies. The provisions of this section may not be construed to permit any telecommunications company to take any action that is contrary to the public interest. "



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

MOTION:      DO PASS HB 1160 AS AMENDED

Moved by:      Representative Schaunaman
Second by:      Representative Pederson (Gordon)
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

MOTION:      ADJOURN

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



Clara Shelbourn

_________________________________

Committee Secretary
Larry E. Gabriel, Chair


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