74th Legislative Session -- 1999

Committee: House State Affairs

Wednesday, February 17, 1999

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Brown (Richard)
P      Eccarius
P      Fischer-Clemens
P      Haley
P      Hunt
P      Jaspers
P      Koetzle
P      Koskan
P      Lucas
P      Roe
E      Smidt
P      McNenny, Vice-Chair
P      Cutler, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Vice Chairman Kenneth McNenny.


          HB 1038:   revise the system of issuing and selling certain licenses, permits, and stamps by agents of the Department of Game, Fish and Parks and to repeal the reimbursement to counties for services rendered in such sales.

Proponents:     

Opponents:      Dick Howard, lobbyist, SD County Commissioners Association
          Dale Metter, President, SD Association of Towns and Townships
          Marie Ingalls, lobbyist, SD Farm Bureau
Presented by:      Doug Hansen, Director, Division of Wildlife, Game, Fish and Parks Department
         

MOTION:      AMEND HB 1038

o-1038

     On page 6 of the printed bill , delete line 4 , and insert:

"      Section 14. That § 40-36-11 be amended to read as follows:

     40-36-11.   Each county shall annually appropriate a sum equal to an assessment on all cattle and sheep based on the most current United States Department of Commerce census of agriculture, and the money shall be remitted to the state treasurer for deposit in the state animal damage control fund. Each county shall be assessed at a rate of twenty-five cents per head for all sheep and six cents per head for all cattle. The Department of Game, Fish and Parks shall certify, to each county auditor, the amount to be appropriated. The state animal damage control fund shall be matched dollar for dollar two dollars for every one dollar of county appropriation by funds of the Department of Game, Fish and Parks to carry out the provisions of this chapter.

     The provisions of §  10-12B-16 do not apply to this section. "



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

MOTION:      SUBSTITUTE MOTION AMEND HB 1038

o-1038b

     On page 6 of the printed bill , delete line 4 , and insert:

"      Section 14. That § 40-36-11 be amended to read as follows:

     40-36-11.   Each county shall annually appropriate a sum equal to an assessment on all cattle and sheep based on the most current United States Department of Commerce census of agriculture, and the money shall be remitted to the state treasurer for deposit in the state animal damage control fund. Each county shall be assessed at a rate of twenty-five cents per head for all sheep and six cents per head for all cattle. The Department of Game, Fish and Parks shall certify, to each county auditor, the amount to be appropriated. The state animal damage control fund shall be matched dollar for dollar two dollars for every one dollar of county appropriation by funds of the Department of Game, Fish and Parks to carry out the provisions of this chapter.

     The provisions of §  10-12B-16 do not apply to this section. "



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

MOTION:      DO PASS HB 1038 AS AMENDED

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

MOTION:      SUBSTITUTE MOTION DEFER HB 1038 UNTIL THE 41ST LEGISLATIVE DAY

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

Voting yes:      Fischer-Clemens, Haley, Koetzle, Koskan, McNenny

Voting no:      Brown (Richard), Eccarius, Hunt, Jaspers, Lucas, Roe, Cutler

Excused:      Smidt

ORIGINAL MOTION:      DO PASS HB 1038 AS AMENDED

Moved by:      Representative Brown (Richard)
Second by:      Representative Roe
Action:      Failed by roll call vote.   (6-6-1-0)

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

Voting no:      Fischer-Clemens, Haley, Jaspers, Koetzle, Koskan, McNenny

Excused:      Smidt

MOTION:      WITHOUT RECOMMENDATION AS AMENDED

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

MOTION:      SUBSTITUTE MOTION TO TABLE HB 1038

Moved by:      Representative Koetzle
Second by:      Representative Koskan
Action:      Failed by roll call vote.   (5-7-1-0)

Voting yes:      Fischer-Clemens, Haley, Koetzle, Koskan, McNenny

Voting no:      Brown (Richard), Eccarius, Hunt, Jaspers, Lucas, Roe, Cutler

Excused:      Smidt

ORIGINAL MOTION:      WITHOUT RECOMMENDATION AS AMENDED

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

Voting yes:      Brown (Richard), Eccarius, Hunt, Jaspers, Lucas, Roe, McNenny, Cutler

Voting no:      Fischer-Clemens, Haley, Koetzle, Koskan

Excused:      Smidt

MOTION:      TO AMEND TITLE OF HB 1038

o-1038t

     On page 1 , line 2 of the printed bill , before " to " delete " and " and insert " , " .

     On page 1 , line 3 , after " sales " insert " and to provide additional funds to the state animal damage control fund " .


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

Chairman Steve Cutler assumed the chair.

          HB 1237:   increase the sales and use tax and to repeal the video lottery and to refer the Act to a vote of the electors of this state at the next general election.

Presented by:      Representative Ron Volesky, prime sponsor

MOTION:      DO PASS HB 1237

Moved by:      Representative Brown (Richard)
Second by:      Representative Fischer-Clemens
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION AMEND HB 1237

o-1237

     On page 1 , line 7 of the printed bill , delete " increase the sales and use tax and to " .

     On page 1 , delete lines 10 to 17 , inclusive .

     Delete pages 2 to 4 , inclusive .

     On page 5 , delete lines 1 to 10 , inclusive .


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

MOTION:      DO PASS HB 1237 AS AMENDED

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

Voting yes:      Brown (Richard), Eccarius, Fischer-Clemens, Haley, Hunt, Koskan, Lucas, Cutler

Voting no:      Jaspers, Koetzle, Roe, McNenny

Excused:      Smidt

MOTION:      TO AMEND TITLE OF HB 1237

o-1237t

     On page 1 , line 1 of the printed bill , delete " increase the sales and use tax and to " .


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

          HB 1201:   increase the state portion of video lottery machine income, to dedicate the additional revenue, and to provide for the repeal of video lottery.

Presented by:      Representative Roger Hunt, prime sponsor

MOTION:      AMEND HB 1201

o-1201a

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

"     Section 1. That § 42-7A-63 be amended to read as follows:



     42-7A-63.   The commission shall maximize revenues to the state from video lottery. The state's percentage of net machine income shall be fifty fifty-five percent until June 30, 2000 and sixty percent on July 1, 2000 and thereafter . The state's percentage of net machine income shall be directly deposited to the property tax reduction fund, except for one-half of one percent of net machine income authorized for deposit into the video lottery operating fund. The effective date of this section is July 1, 1996. However, each fiscal year, if the total amount of net machine income deposited in the property tax reduction fund exceeds the amount deposited in the property tax reduction fund for fiscal year 1999, the commissioner of the Bureau of Finance and Management shall transfer the excess amount from the previous fiscal year before September first of each year to the appropriate funds as provided by section 2 of this Act.

     Section 2. Fifty percent of any excess amount transferred from the property tax reduction fund as provided by section 1 of this Act shall be deposited in the fund created in section 3 of this Act. The remaining fifty percent of any excess amount shall be deposited in the fund created in section 4 of this Act.

     Section 3. There is established within the state treasury the education trust fund. The fund is a perpetual fund in which the principal shall remain inviolate. This fund may be invested by the state investment officer pursuant to chapter 4-5. All interest earned on the fund shall be deposited in the fund created pursuant to section 4 of this Act.

     Section 4. There is established within the state treasury the improving education fund. All interest earned on the fund and all interest earned on the fund created by section 3 of this Act shall be credited to this fund. Expenditures from this fund shall be budgeted through the normal budget process pursuant to chapter 4-7. Unexpended funds and interest shall remain in the fund until appropriated by the Legislature.

     Section 5. There is created a commission to administer the improving education fund created pursuant to this Act. The commission shall consist of nine members to be appointed by the Governor. The members shall be appointed for three-year terms of office so arranged that no more than three terms expire in any given year. Not all members may be from the same political party. The Governor shall designate the terms at the time of appointment. Any member appointed to fill a vacancy arising from other than the natural expiration of a term shall serve only the unexpired portion of the term. The commission shall be attached to the Department of Education and Cultural Affairs for reporting and budgetary purposes.

     Section 6. Expenditures from the improving education fund shall be available as grants to the institutions under the control of the Board of Regents, public school districts for the support and improvement of public elementary and secondary schools, and the post-secondary technical institutes. The commission established pursuant to this Act may promulgate rules pursuant to chapter 1-26 to establish application procedures for such grants, criteria for eligibility, award procedures, and grant administration procedures. "



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

MOTION:      DO PASS HB 1201 AS AMENDED

Moved by:      Representative Brown (Richard)
Second by:      Representative Hunt
Action:      Failed by roll call vote.   (5-7-1-0)

Voting yes:      Brown (Richard), Hunt, Koskan, Roe, Cutler

Voting no:      Eccarius, Fischer-Clemens, Haley, Jaspers, Koetzle, Lucas, McNenny

Excused:      Smidt

MOTION:      TO TABLE HB 1201

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

Voting yes:      Eccarius, Fischer-Clemens, Haley, Jaspers, Koetzle, Lucas, Roe, McNenny

Voting no:      Brown (Richard), Hunt, Koskan, Cutler

Excused:      Smidt

          HB 1152:   establish a school construction fund, to provide for loans from the fund, to increase the state portion of video lottery machine income, and to dedicate the additional revenue to the school construction fund.



MOTION:      TO TABLE HB 1152

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

Voting yes:      Eccarius, Fischer-Clemens, Haley, Jaspers, Koetzle, Lucas, Roe, McNenny

Voting no:      Brown (Richard), Hunt, Koskan, Cutler

Excused:      Smidt

          HB 1149:   increase the sales and use tax, to reduce the sales and use tax over a period of time, and to repeal the video lottery.



MOTION:      DO PASS HB 1149

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

MOTION:      SUBSTITUTE MOTION TO TABLE HB 1149

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

Voting yes:      Eccarius, Fischer-Clemens, Haley, Jaspers, Koetzle, Lucas, Roe, McNenny

Voting no:      Brown (Richard), Hunt, Koskan, Cutler

Excused:      Smidt

          HB 1155:   revise the basis upon which certain noncommercial motor vehicle license fees are determined, to increase the fees over a certain time period, and to revise certain provisions regarding a wheel tax on motor vehicles.

Presented by:      Representative Donald Munson, prime sponsor

MOTION:      AMEND HB 1155

m-1155

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

"      Section 1. That § 10-47B-4 be amended to read as follows:

     10-47B-4.   The fuel excise tax rates for the tax imposed by this chapter are as follows:

             (1)      Motor fuel (except ethanol blends, E85 and M85 blends, and aviation gasoline) - $.18 $.21 per gallon;

             (2)      Special fuel (except jet fuel) - $.18 $.21 per gallon;

             (3)      Ethanol blends - $.16 $.19 per gallon;

             (4)      Aviation gasoline - $.06 per gallon;

             (5)      Jet fuel - $.04 per gallon;

             (6)      E85 and M85 - $.06 $.09 per gallon;

             (7)      E85 and M85 used in aircraft - $.04 per gallon;

             (8)      Liquid petroleum gas - $.16 $.19 per gallon;

             (9)      Compressed natural gas - $.06 $.09 per gallon. "


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

MOTION:      DO PASS HB 1155 AS AMENDED

Moved by:      Representative Brown (Richard)
Second by:      Representative Eccarius
Action:      Failed by roll call vote.   (6-6-1-0)

Voting yes:      Brown (Richard), Eccarius, Hunt, Lucas, McNenny, Cutler

Voting no:      Fischer-Clemens, Haley, Jaspers, Koetzle, Koskan, Roe

Excused:      Smidt

MOTION:      DEFER HB 1155 UNTIL THE 41ST LEGISLATIVE DAY

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

MOTION:      SUBSTITUTE MOTION WITHOUT RECOMMENDATION AS AMENDED

Moved by:      Representative Brown (Richard)
Second by:      Representative Hunt
Action:      Prevailed by roll call vote.   (7-4-2-0)

Voting yes:      Brown (Richard), Eccarius, Hunt, Lucas, Roe, McNenny, Cutler

Voting no:      Haley, Jaspers, Koetzle, Koskan

Excused:      Fischer-Clemens, Smidt

MOTION:      TO AMEND TITLE OF HB 1155

m-1155t

     On page 1 , line 1 of the printed bill , delete everything after " to " and insert " increase the excise tax on certain motor fuels. " .

     On page 1 , delete lines 2 and 3 .


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

          HB 1204:   provide for certain increases in the state minimum wage.

Proponents:      Paul Aylward, lobbyist, AFSCME and AFL-CIO
          Nick Braune, lobbyist, SD Peace and Justice Center
Opponents:      Jerry Wheeler, lobbyist, SD Retailers Association
          Dick Gregerson, lobbyist, SD Chamber of Commerce and Industry
          Bob Riter, lobbyist, National Federation of Independent Business
          Dan Nelson, lobbyist, Sioux Falls Chamber of Commerce
Presented by:      Representative Gil Koetzle, prime sponsor

MOTION:      DEFER HB 1204 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative McNenny
Second by:      Representative Eccarius
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION DO PASS HB 1204

Moved by:      Representative Haley
Second by:      Representative Lucas
Action:      Failed by roll call vote.   (4-7-2-0)

Voting yes:      Fischer-Clemens, Haley, Koetzle, Lucas

Voting no:      Brown (Richard), Eccarius, Jaspers, Koskan, Roe, McNenny, Cutler

Excused:      Hunt, Smidt

ORIGINAL MOTION:      DEFER HB 1204 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative McNenny
Second by:      Representative Eccarius
Action:      Prevailed by roll call vote.   (7-4-2-0)

Voting yes:      Brown (Richard), Eccarius, Jaspers, Koskan, Roe, McNenny, Cutler

Voting no:      Fischer-Clemens, Haley, Koetzle, Lucas

Excused:      Hunt, Smidt

          HJR 1002:   Proposing and submitting to the electors at the next general election a new section to Article XI of the Constitution of the State of South Dakota, imposing an individual and corporate income tax; exempting food, utilities, residential heating fuel, certain intrastate transportation services, collection and disposal of solid waste, and auction goods from sales and use taxes; providing property tax relief through the general fund levy of a school district; and increasing state aid to education.

Proponents:      Elaine Roberts, President, South Dakota Education Associatiion
          Nick Braune, lobbyist, Peace and Justice Center
Opponents:      Bob Riter, lobbyist, Nation Federation of Independent Business
          Jerry Wheeler, lobbyist, SD Retailers Association
          Dan Nelson, lobbyist, Sioux Falls Chamber of Commerce
Presented by:      Representative Al Waltman, prime sponsor (handout 1)

MOTION:      AMEND HJR1002

o-j1002

     On page 1 , line 16 of the printed resolution , after " food, " insert " clothing, " .


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

MOTION:      DO PASS HJR1002 AS AMENDED

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

MOTION:      SUBSTITUTE MOTION DEFER HJR1002 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative Koskan
Second by:      Representative Jaspers
Action:      Failed by roll call vote.   (5-6-2-0)

Voting yes:      Brown (Richard), Eccarius, Jaspers, Koskan, Roe

Voting no:      Fischer-Clemens, Haley, Koetzle, Lucas, McNenny, Cutler

Excused:      Hunt, Smidt

MOTION:      SUBSTITUTE MOTION DO NOT PASS HJR1002 AS AMENDED

Moved by:      Representative Brown (Richard)
Second by:      Representative Eccarius
Action:      Prevailed by roll call vote.   (7-5-1-0)

Voting yes:      Brown (Richard), Eccarius, Hunt, Jaspers, Koskan, Roe, McNenny

Voting no:      Fischer-Clemens, Haley, Koetzle, Lucas, Cutler

Excused:      Smidt

MOTION:      TO AMEND TITLE OF HJR1002

o-j1002t

     On page 1 , line 3 of the printed resolution , after " food, " insert " clothing, " .


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

          HB 1169:   increase the motor vehicle excise tax and to provide for its distribution.

Proponents:      Dick Howard, lobbyist, SD Association of County Commissions
Opponents:      Jim Jenssen, Deputy Secretary, Department of Transportation
          Jim Keyes, lobbyist, Associated General Contractors
Presented by:      Representative Clarence Kooistra, prime sponsor

MOTION:      DEFER HB 1169 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Representative McNenny
Second by:      Representative Koskan
Action:      Prevailed by roll call vote.   (9-3-1-0)

Voting yes:      Brown (Richard), Eccarius, Hunt, Jaspers, Koskan, Lucas, Roe, McNenny, Cutler

Voting no:      Fischer-Clemens, Haley, Koetzle

Excused:      Smidt

Vice Chair McNenny assumed the chair.

          HB 1291:   repeal certain restrictions against lobbying within a year after termination of service or employment with the state.

Presented by:      Representative Steve Cutler, prime sponsor

MOTION:      DO PASS HB 1291

Moved by:      Representative Brown (Richard)
Second by:      Representative Cutler
Action:      Prevailed by roll call vote.   (10-2-1-0)

Voting yes:      Brown (Richard), Eccarius, Fischer-Clemens, Haley, Jaspers, Koetzle, Koskan, Roe, McNenny, Cutler

Voting no:      Hunt, Lucas

Excused:      Smidt

Chairman Cutler assumed the chair.

MOTION:      ADJOURN

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



Clara Shelbourn

_________________________________

Committee Secretary
Steve Cutler, Chair


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