74th Legislative Session -- 1999

Committee: Senate State Affairs

Monday, February 8, 1999

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Dunn (Jim)
P      Munson (David)
P      Hutmacher
P      Lawler
E      Symens
P      Everist
P      Whiting
P      Rounds, Vice-Chair
P      Halverson, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Halverson


MOTION:      TO APPROVE THE MINUTES OF 2/5/99

Moved by:      Senator Dunn (Jim)
Second by:      Senator Whiting
Action:      Prevailed by voice vote.

          SB 234:   establish criteria for the use of utilization review by health carriers, utilization review organizations, and other contracted entities and for the coverage of emergency services.

Presented by:      Dave Knudson, Governor's Office
          Representative Hunt, Brandon, South Dakota

MOTION:      TO TABLE SB 234

Moved by:      Senator Rounds
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (7-0-2-0)

Voting yes:      Dunn (Jim), Munson (David), Hutmacher, Lawler, Whiting, Rounds, Halverson



Excused:      Symens, Everist

          HB 1010:   provide certain protections for persons enrolled in managed care plans.

Presented by:      Dave Knudson, Governor's Office

MOTION:      TO TABLE HB 1010

Moved by:      Senator Rounds
Second by:      Senator Dunn (Jim)
Action:      Prevailed by roll call vote.   (7-0-2-0)

Voting yes:      Dunn (Jim), Munson (David), Hutmacher, Lawler, Whiting, Rounds, Halverson

Excused:      Symens, Everist

          HB 1011:   provide covered persons in managed care plans with reasonable access to providers.

Presented by:      Dave Knudson, Governor's Office

MOTION:      TO TABLE HB 1011

Moved by:      Senator Dunn (Jim)
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (7-0-2-0)

Voting yes:      Dunn (Jim), Munson (David), Hutmacher, Lawler, Whiting, Rounds, Halverson

Excused:      Symens, Everist

          SB 235:   require the disclosure of information to prospective enrollees of managed care plans.

Proponents:      Dave Knudson, Governor's Office

MOTION:      AMEND SB 235

o-235

     On page 1 , line 4 of the printed bill , delete " managed care entity " and insert " health carrier who offers a managed care plan " .

     On page 1 , line 6 , delete " managed care plan " and insert " health carrier " .

     On page 1 , line 10 , delete " managed care entity " and insert " health carrier " .


Moved by:      Senator Rounds
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

          SB 236:   establish standards for network adequacy and quality of care in managed care plans and to require the registration of managed care entities.

Proponents:      Dave Knudson, Governor's Office

MOTION:      AMEND SB 236

o-236

     On page 1 , line 11 of the printed bill , delete " health benefit " .

     On page 1 , line 13 , delete " health benefit " .

     On page 13 , after line 3 , insert:

"     Section 22. Nothing in this Act applies to health carriers that only offer individual policies if:

             (1)    The policy does not use an individual or group to determine where or when services will be rendered, the course of treatment, or who will provide the services;

             (2)    The policy does not require pre-authorization for services provided under the policy; and

             (3)    The difference in policy benefits does not exceed ten percent whether an insured used a participating provider or nonparticipating provider.

     Section 23. The Division of Insurance shall separately monitor complaints regarding managed care for any policy that is exempt pursuant to section 22 of this Act. "


Moved by:      Senator Rounds
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

          HB 1013:   establish certain requirements regarding coverage of emergency medical services in managed care plans.

Proponents:      Dave Knudson, Governor's Office

MOTION:      AMEND HB 1013

j-1013f

     On page 1 , line 6 of the House Health and Human Services committee engrossed bill , delete " managed care " .

     On page 1 , between lines 13 and 14 , insert:

"

             (3A)    "Health carrier," an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to contract, or enters into an agreement to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits, or health services; "

     On page 2 , line 14 , delete " managed care plan " and insert " health carrier " .

     On page 2 , line 21 , delete " managed care plan " and insert " health carrier " .

     On page 2 , line 25 , delete " plan " and insert " health carrier " .

     On page 3 , line 6 , delete " managed care plan " and insert " health carrier " .

     On page 3 , line 9 , delete " managed care " and insert " health carrier " .

     On page 3 , line 10 , before " authorizes " delete " plan " .

     On page 3 , line 10 , after "the" delete " plan " and insert " health carrier " .

     On page 4 , line 3 , delete " managed care plan " and insert " health carrier " .


Moved by:      Senator Munson (David)
Second by:      Senator Whiting
Action:      Prevailed by voice vote.

          HB 1012:   provide utilization review of managed care plans.

Proponents:      Dave Knudson, Governor's Office

MOTION:      AMEND HB 1012

j-1012g

     On page 1 , line 4 of the House Health and Human Services committee engrossed bill , delete " managed care plan " and insert " health carrier " .

     On page 1 , line 7 , delete " managed care plan's " and insert " health carrier's " .

     On page 1 , line 14 , delete " managed care plan " and insert " health carrier " .

     On page 2 , line 3 , delete " managed care plan's " and insert " health carrier's " .

     On page 3 , line 1 , delete " managed care plan " and insert " health carrier " .

     On page 3 , between lines 7 and 8 , insert:

"

             (15A)    "Health carrier," an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits, or health services; "

     On page 3 , line 24 , delete " managed care " and insert " health carrier; " .

     On page 3 , delete line 25 .

     On page 4 , line 1 , delete " managed care plan " and insert " health carrier " .

     On page 4 , line 4 , delete " managed care plan " and insert " health carrier " .

     On page 4 , line 21 , delete " managed care plan " and insert " health carrier " .

     On page 4 , line 22 , delete " managed care " and insert " health carrier " .

     On page 4 , line 23 , delete " plan " .

     On page 4 , line 23 , delete " plan's " and insert " carrier's " .

     On page 4 , line 25 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 1 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 2 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 3 , delete " managed care plan's " and insert " health carrier's " .

     On page 5 , line 5 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 7 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 8 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 10 , delete " managed care plan " and insert " health carrier " .

     On page 5 , line 23 , delete " managed care plan's " and insert " health carrier's " .

     On page 5 , line 25 , delete " managed care plan shall file " and insert " health carrier shall prepare " .

     On page 6 , line 1 , after " activities " insert " and file the report, if requested, " .

     On page 6 , line 4 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 5 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 11 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 12 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 14 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 16 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 18 , delete " managed care plan's " and insert " health carrier's " .

     On page 6 , line 19 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 21 , delete " managed care plan " and insert " health carrier " .

     On page 6 , line 22 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 2 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 3 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 5 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 6 , delete " plan " and insert " carrier " .

     On page 7 , line 9 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 11 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 14 , delete " managed " and insert " health carrier " .

     On page 7 , line 15 , delete " care plan " .

     On page 7 , line 18 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 21 , delete " managed care plan " and insert " health carrier " .

     On page 7 , line 25 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 4 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 9 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 12 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 13 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 18 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 20 , delete " managed care plan " and insert " health carrier " .

     On page 8 , line 24 , delete " managed care plan " and insert " health carrier " .

     On page 9 , line 1 , delete " managed care plan " and insert " health carrier " .

     On page 9 , line 3 , delete " managed care plan " and insert " health carrier " .

     On page 9 , line 10 , delete " managed care plan " and insert " health carrier " .

     On page 9 , line 13 , delete " managed care plan " and insert " health carrier " .

     On page 9 , line 15 , delete " managed care plan " and insert " health carrier " .

     On page 11 , line 2 , delete " managed care plan " and insert " health carrier " .

     On page 11 , line 5 , delete " managed care plan " and insert " health carrier " .

     On page 11 , line 6 , delete " managed care plan " and insert " health carrier " .

     On page 11 , line 13 , delete " managed care plan " and insert " health carrier " .


Moved by:      Senator Dunn (Jim)
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.

MOTION:      AMEND HB 1012

j-1012h

     On page 2 of the House Health and Human Services committee engrossed bill , delete lines 5 to 10 , inclusive .

     On page 4 , line 15 , delete " a set of formal techniques designed to monitor the use of, or " and insert " an activity as defined in subdivisions 58-17-91(4) and 58-18-64(4); and " .

     On page 4 , delete lines 16 to 19 , inclusive .

     On page 6 , line 9 , delete everything after " . " and insert " Any adverse determination shall be evaluated by an appropriately licensed and clinically qualified health care provider. " .

     On page 6 , delete line 10 .

     On page 9 , line 6 , delete " A " and insert " Any " .

     On page 9 , line 7 , after " appeal " insert " , grievance, " .

     On page 9 , line 9 , delete " , including the clinical review criteria " .

     On page 9 , line 10 , after " determination " delete " , " .

     On page 9 , line 11 , delete " including the clinical review criteria used to make that determination, " .

     On page 9 , line 12 , after " request. " insert " The clinical rationale shall contain sufficient specificity to allow the covered person to understand the basis of the adverse determination. " .

     On page 9 , delete lines 17 to 25 , inclusive .

     On page 10 , delete lines 1 to 25 , inclusive .

     On page 11 , after line 14 , insert:

"      Section 32. The director may, after consultation with the secretary of the Department of Health, promulgate rules pursuant to chapter 1-26 to carry out the provisions of the Act. The rules shall be designed to afford the public timely administration of utilization review and to assure that utilization review decisions are made in a fair and clinically acceptable manner. The rules may include the following:

             (1)    Definition of terms;

             (2)    Timing, form, and content of reports;

             (3)    Application of clinical criteria as it relates to utilization review;

             (4)    Written determinations; and

             (5)    Utilization review procedures. "


Moved by:      Senator Munson (David)
Second by:      Senator Rounds
Action:      Prevailed by voice vote.

          SB 186:   limit the liability of certain persons for year 2000 litigation.

Proponents:      David Owen, South Dakota Chamber of Commerce and Industry

MOTION:      SUBSTITUTE MOTION AMEND SB 186

o-186a

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

"      Section 1. Terms used in this Act mean:

             (1)    "Computer," any electronic device or group, network, or other combination of devices using silicon chips, embedded chips, or other electronic systems or processes to store, process, or manipulate information whether independently or in connection with other electronic devices or other machinery or any other device included under §  43-43B-2;

             (2)    "Computer software," any set of instructions, computations, or other data stored or recorded on an electronic or other medium that causes or allows a computer to perform specific functions, calculations, or other activities or any other device included under §  43-43B-2;

             (3)    "Year 2000 disruption," any malfunction or failure of a computer or computer software due to an inability or failure to properly perform operations, computations, or other functions or to properly store, display, transmit, or otherwise manipulate data as a result of an inability or failure to recognize or process dates using the year 2000 or any subsequent year;

             (4)    "Year 2000 compliance," reasonable consultation, analysis, testing, or contingency planning in conformance with generally accepted computer or computer software standards that indicates that any computer or computer software will not suffer any Year 2000 disruption; or installation of any new computer or computer software or any upgrade to any computer or computer software which is warranted, guaranteed, or otherwise marketed to comply with generally accepted design standards to avoid Year 2000 disruption.

     Section 2. In any lawsuit based on any Year 2000 disruption, evidence of Year 2000 compliance creates a rebuttable presumption that any injury based on a Year 2000 disruption was not caused by negligence of the defendant or that, in any action based on breach of contract resulting from a Year 2000 disruption, failure to perform under the contract was not the fault of the defendant.

     Section 3. Nothing in this Act abrogates or limits rights under §  57A-2-318. "



Moved by:      Senator Everist
Second by:      Senator Dunn (Jim)
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 186 AS AMENDED

Moved by:      Senator Everist
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (8-0-1-0)

Voting yes:      Dunn (Jim), Munson (David), Hutmacher, Lawler, Everist, Whiting, Rounds, Halverson

Excused:      Symens
Senator Rounds assumed the Chair.
          SB 149:   require the establishment of a cost recovery method or mechanism for telecommunication companies to recover the cost of certain mandated services.

Proponents:      Senator Halverson, Twin Brooks, South Dakota
          Larry Toll(Document 1,2)U.S. West
          Brian Meyer,South Dakota Association of Telephone Cooperatives
Opponents:      Jim Burg, Commissioner, Public Utilities Commission
          Rolayne Wiest, Public Utilities Commission
          Dave Gerdes, Midco Telecommunications
          Pam Nelson, Commissioner, Public Utilities Commission

MOTION:      AMEND SB 149

o-149

     On page 1 , line 10 of the printed bill , delete " through local exchange services " .


Moved by:      Senator Halverson
Second by:      Senator Dunn (Jim)
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 149 AS AMENDED

Moved by:      Senator Halverson
Second by:      Senator Everist
Action:      Prevailed by roll call vote.   (5-3-1-0)

Voting yes:      Dunn (Jim), Munson (David), Everist, Whiting, Halverson

Voting no:      Hutmacher, Lawler, Rounds

Excused:      Symens
Senator Halverson resumed the Chair.
          SB 247:   revise certain provisions regarding audits by the Division of Securities.

Proponents:      Senator Dennert, Columbia, South Dakota
          Representative Diedtrich, Aberdeen,South Dakota
          Darla Pollman Rogers, South Dakota Association of Life Underwriters
         
Opponents:      Debra Bollinger,Department of Commerce and Regulation

MOTION:      AMEND SB 247

o-247

     On page 3 , line 9 of the printed bill , delete " , and any audit " and insert " . " .

     On page 3 , delete line 10 .


Moved by:      Senator Hutmacher
Second by:      Senator Lawler
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 247 AS AMENDED

Moved by:      Senator Lawler
Second by:      Senator Hutmacher
Action:      Was not acted on.

MOTION:      SUBSTITUTE MOTION TO TABLE SB 247

Moved by:      Senator Halverson
Second by:      Senator Everist
Action:      Prevailed by roll call vote.   (6-2-1-0)

Voting yes:      Dunn (Jim), Munson (David), Everist, Whiting, Rounds, Halverson

Voting no:      Hutmacher, Lawler

Excused:      Symens

          SB 210:   provide mandatory prison sentences for certain violations regarding controlled substances and marijuana.

Proponents:      Dave Knudson, Governor's Office

MOTION:      AMEND SB 210

r-210

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

"
     Section 1. That § 22-42-2.1 be amended to read as follows:

     22-42-2.1.   No person other than a practitioner who is not a pharmacist, may dispense a controlled drug or substance included in Schedule II to an ultimate user without the written prescription of a practitioner who is not a pharmacist. No prescription for a Schedule II drug or substance shall may be refilled. A violation of this section is a Class 4 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 2. That § 22-42-2.3 be amended to read as follows:

     22-42-2.3.   The sentencing court may impose a sentence other than that which is required by §  22-42-2 if the court finds that mitigating circumstances exist which require a departure from the mandatory sentence imposed by §  22-42-2. The court's finding of mitigating circumstances allowed by this section and the factual basis relied upon by the court shall be in writing. In no case may the departure from the mandatory sentence result in the court imposing a sentence or a term of probation or condition of suspension that does not include mandatory incarceration in the state penitentiary for not less than thirty days.

     Section 3. That § 22-42-3 be amended to read as follows:

     22-42-3.   Except as authorized by this chapter or chapter 34-20B, no person may manufacture, distribute, or dispense a substance listed in Schedule III; possess with intent to manufacture, distribute, or dispense, a substance listed in Schedule III; create or distribute a counterfeit substance listed in Schedule III; or possess with intent to distribute a counterfeit substance listed in Schedule III. A violation of this section is a Class 5 felony. However, the distribution of a substance listed in Schedule III to a minor is a Class 3 felony. A first conviction under this section shall be punished by a mandatory sentence in the state penitentiary or county jail of at least thirty days, which sentence

may not be suspended. A second or subsequent conviction under this section shall be punished by a mandatory penitentiary or county jail sentence of at least one year, which sentence may not be suspended. However, a first conviction for distribution to a minor under this section shall be punished by a mandatory sentence in the state penitentiary or county jail of at least ninety days, which sentence may not be suspended. A second or subsequent conviction for distribution to a minor under this section shall be punished by a mandatory sentence in the state penitentiary of at least two years, which sentence may not be suspended. A civil penalty may be imposed, in addition to any criminal penalty, upon a conviction of a violation of this section not to exceed ten thousand dollars. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 4. That § 22-42-4 be amended to read as follows:

     22-42-4.   Except as authorized by this chapter or chapter 34-20B, no person may manufacture, distribute, or dispense a substance listed in Schedule IV; possess with intent to manufacture, distribute, or dispense, a substance listed in Schedule IV; create or distribute a counterfeit substance listed in Schedule IV; or possess with intent to distribute a counterfeit substance listed in Schedule IV. A violation of this section is a Class 6 felony. However, the distribution of a substance listed in Schedule IV to a minor is a Class 4 felony. A first conviction under this section shall be punished by a mandatory sentence in the state penitentiary or county jail of at least thirty days, which sentence may not be suspended. A second or subsequent conviction under this section shall be punished by a mandatory penitentiary or county jail sentence of at least one year, which sentence may not be suspended. A civil penalty may be imposed, in addition to any criminal penalty, upon a conviction of a violation of this section not to exceed ten thousand dollars. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 5. That § 22-42-4.1 be amended to read as follows:

     22-42-4.1.   Except when Unless dispensed directly by a practitioner, other than a pharmacist, to an ultimate user, no controlled drug or substance included in Schedule III or Schedule IV may be dispensed without a written or oral prescription. Such prescription may not be filled or refilled more than six months after the date thereof or be refilled more than five times after the date of the prescription, unless renewed by the practitioner. A violation of this section is a Class 5 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 6. That § 22-42-5 be amended to read as follows:

     22-42-5.   No person may knowingly possess a controlled drug or substance unless the substance was obtained directly or pursuant to a valid prescription or order from a practitioner, while acting in the course of the practitioner's professional practice or except as otherwise authorized by chapter 34-20B. A violation of this section is a Class 4 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which

sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 7. That § 22-42-6 be amended to read as follows:

     22-42-6.   No person may knowingly possess marijuana. It is a Class 1 Class A misdemeanor to possess two ounces of marijuana or less. It is a Class 6 felony to possess more than two ounces of marijuana but less than one-half pound of marijuana. It is a Class 5 felony to possess one-half pound but less than one pound of marijuana. It is a Class 4 felony to possess one to ten pounds of marijuana. It is a Class 3 felony to possess more than ten pounds of marijuana. Any person found guilty of a Class A misdemeanor or felony under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section. A civil penalty may be imposed, in addition to any criminal penalty, upon a conviction of a violation of this section not to exceed ten thousand dollars.

     Section 8. That § 22-42-7 be amended to read as follows:

     22-42-7.   The distribution of less than one-half ounce of marijuana without consideration is a Class 1 Class A misdemeanor; otherwise, the distribution of one ounce or less of marijuana is a Class 6 felony. The distribution of more than one ounce but less than one-half pound of marijuana is a Class 5 felony. The distribution of one-half pound but less than one pound of marijuana is a Class 4 felony. The distribution of one pound or more of marijuana is a Class 3 felony. However, the distribution of any amount of marijuana to a minor is a Class 4 felony. A first conviction Any person found guilty of a Class A misdemeanor under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Any person found guilty of a felony under this section shall be punished by a mandatory sentence in the state penitentiary or county jail of at least thirty days, which sentence may not be suspended. A second or subsequent conviction of a Class A misdemeanor under this sentence shall be punished by a mandatory sentence of not less than sixty days, which sentence may not be suspended. A second or subsequent conviction of a felony under this section shall be punished by a mandatory sentence of at least one year . Conviction of a Class 1 misdemeanor under this section shall be punished by a mandatory sentence in county jail of not less than fifteen days, which sentence may not be suspended , which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section . A civil penalty may be imposed, in addition to any criminal penalty, upon a conviction of a felony violation of this section not to exceed ten thousand dollars.

     Section 9. That § 22-42-8 be amended to read as follows:

     22-42-8.   Any person who knowingly obtains possession of a controlled drug or substance by theft, misrepresentation, forgery, fraud, deception, or subterfuge is guilty of a Class 4 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended

imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 10. That § 22-42-10 be amended to read as follows:

     22-42-10.   Any person who keeps or maintains a place which is resorted to by persons using controlled drugs and substances for the purpose of using such substances, or which is used for the keeping or selling of such substances, is guilty of a Class 5 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 11. That § 22-42-16 be amended to read as follows:

     22-42-16.   No person may deliver or possess with intent to deliver or knowingly manufacture any noncontrolled substance which the person represents to be a substance controlled under the provisions of this chapter. Any person who violates this section is guilty of a Class 6 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 12. That § 22-42-19 be amended to read as follows:

     22-42-19.   Any person who commits a violation of §  22-42-2, 22-42-3, or 22-42-4, or a felony violation of §  22-42-7, if such activity has taken place:

             (1)      In, on, or within one thousand feet of real property comprising a public or private elementary or secondary school or a playground; or

             (2)      In, on, or within five hundred feet of real property comprising a public or private youth center, public swimming pool, or video arcade facility;

is guilty of a Class 4 felony.

     The sentence imposed for a conviction under this section carries a minimum sentence of imprisonment in the state penitentiary of five years. Any sentence imposed under this section shall be consecutive to any other sentence imposed for the principal felony. The court may not place on probation, suspend the execution of the sentence, or suspend the imposition of the sentence of any person convicted of a violation of this section. However, the sentencing court may impose a sentence other than that specified in this section if the court finds that mitigating circumstances exist which require a departure from the mandatory sentence provided for in this section. The court's finding of mitigating circumstances allowed by this section and the factual basis relied upon by the court shall be in writing. In no case shall the departure from the mandatory sentence result in the court imposing

a sentence or a term of probation or condition of suspension that does not include mandatory incarceration in the state penitentiary for not less than thirty days.

     It is not a defense to the provisions of this section that the defendant did not know the distance involved. It is not a defense to the provisions of this section that school was not in session.

     Section 13. That § 34-20B-42 be amended to read as follows:

     34-20B-42.   No person who is a registrant shall may manufacture, distribute, or dispense a controlled drug or substance not authorized by his registration to another registrant or other authorized person. A violation of this section may be punished by a civil fine of not more than ten thousand dollars. In addition, if the violation was done knowingly, it is a Class 5 felony. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 14. That § 34-20B-46 be amended to read as follows:

     34-20B-46.   It is a Class 5 felony for any person who is a registrant knowingly to distribute a controlled drug or substance classified in Schedules I or II, in the course of his legitimate business, except pursuant to an order form as required by this chapter. Any person found guilty under this section shall be punished by a mandatory sentence in the state penitentiary of not less than thirty days, which sentence may not be suspended. Probation, suspended imposition of sentence, or suspended execution of sentence may not form the basis for reducing the mandatory time of incarceration required by this section.

     Section 15. The mandatory incarceration provisions of sections 1 to 14, inclusive, of this Act do not apply to a child, as defined in §  26-7A-1(6), unless the child is tried as an adult pursuant to §  26- 11-3.1 or 26-11-4.

     Section 16. The provisions of §  23A-27-35 do not apply to any person found guilty of a Class A misdemeanor.

     Section 17. That § 22-1-4 be amended to read as follows:

     22-1-4.   Crimes are either felonies or misdemeanors. A felony is a crime which is or may be punishable by imprisonment in the state penitentiary. Every other crime is a misdemeanor. However, Class A misdemeanors are misdemeanors notwithstanding a mandatory sentence to the state penitentiary.

     Section 18. That § 22-6-2 be amended to read as follows:

     22-6-2.   Except as otherwise provided by law, misdemeanors are divided into two three classes which are distinguished from each other by the following maximum penalties which are authorized upon conviction:



             (1)    Class A misdemeanor: one year imprisonment in the state penitentiary or one thousand five hundred dollars fine, or both;

             (1) (2)      Class 1 misdemeanor: one year imprisonment in a county jail or one thousand dollars fine, or both;

             (2) (3)      Class 2 misdemeanor: thirty days imprisonment in a county jail or two hundred dollars fine, or both.

     The court in imposing sentence on a defendant who has been found guilty of a misdemeanor shall order, in addition to the sentence that is imposed pursuant to the provisions of this section, that the defendant make restitution to any victim in accordance with the provisions of chapter 23A-28.

     Except in cases where punishment is prescribed by law, every offense declared to be a misdemeanor and not otherwise classified, is a Class 2 misdemeanor.

     Except in Titles 1 to 20, inclusive, 22, 25 to 28, inclusive, 32 to 36, inclusive, 40 to 42, inclusive, 47 to 54, inclusive, and 58 to 62, inclusive, if the performance of an act is prohibited by a statute, and no penalty for the violation of such statute is imposed by a statute, the doing of such act is a Class 2 misdemeanor.

     Section 19. That § 26-8C-4 be amended to read as follows:

     26-8C-4.   If the court is satisfied that the best interests of the public, justice and child will be served, the court may, without entering an adjudication of delinquency, with consent of the child, suspend imposition of adjudication of delinquency and place the child on probation under the terms, conditions and duration required by the court. If the proceeding involves the unlawful possession or distribution of marijuana or a controlled drug or substance, the court shall include as a condition of probation that the child be committed to the Department of Corrections for a period of not less than thirty days which may not be reduced. A court may revoke the suspension at any time during the probationary period and impose an adjudication of delinquency without diminishment or credit for any of the probationary period.

     Section 20. That § 26-8C-7 be amended to read as follows:

     26-8C-7.   If Except as provided in section 21 of this Act, if a child has been adjudicated as a delinquent child, the court shall enter a decree of disposition according to the least restrictive alternative available in keeping with the best interests of the child. The decree shall contain one or more of the following alternatives:

             (1)      The court may make any one or more of the dispositions in §  26-8B-6, except that a delinquent child may be incarcerated in a detention facility established pursuant to provisions of chapter 26-7A for not more than ninety days, which may be in addition to any period of temporary custody;

             (2)      The court may impose a fine not to exceed one thousand dollars;

             (3)      The court may place the child on probation under the supervision of a court services officer or another designated individual. The child may be required as a condition of probation to report for assignment to a supervised work program, provided the child is not deprived of the schooling that is appropriate for the child's age, needs and specific rehabilitative goals. The supervised work program shall be of a constructive nature designed to promote rehabilitation, appropriate to the age level and physical ability of the child, and shall be combined with counseling by the court services officer or other guidance personnel. The supervised work program assignment shall be made for a period of time consistent with the child's best interests, but for not more than ninety days;

             (4)      The court may place the child at the Human Services Center for examination and treatment;

             (5)      The court may commit the child to the Department of Corrections;

             (6)      The court may place the child in a detention facility for not more than ninety days, which may be in addition to any period of temporary custody;

             (7)      The court may place the child in an alternative educational program;

             (8)      The court may order the suspension or revocation of the child's driving privilege or restrict the privilege in such manner as it sees fit.

     Section 21. That chapter 26-8C be amended by adding thereto a NEW SECTION to read as follows:
     If a child has been adjudicated as a delinquent child for a violation of state law regarding the possession or distribution of marijuana or a controlled drug or substance, the court shall enter a decree of disposition committing the child to the Department of Corrections for a period of not less than thirty days. Probation, suspended imposition of adjudication of delinquency, suspended execution of adjudication of delinquency, or discharge under §  26-7A-122 may not form the basis for reducing the mandatory time of commitment required by this section to less than thirty days. "


Moved by:      Senator Whiting
Second by:      Senator Rounds
Action:      Prevailed by voice vote.

The Chair deferred SB 210 until 2/10/99.

          SB 211:   revise certain provisions relating to workers' compensation.

Proponents:      Dave Knudson, Governor's Office

MOTION:      AMEND SB 211

o-211

     On page 1 , delete lines 13 to 17 of the printed bill , inclusive .

     On page 2 , delete lines 1 to 5 , inclusive .

     On page 5 , line 21 , after " a " insert " bona fide " .

     On page 5 , line 23 , after " accommodations, " insert " and offers the employee the opportunity to work either full-time or part-time and pays wages equivalent to, or greater than, the workers' compensation benefit rate applicable to the employee at the time of the employee's injury " .

     On page 5 , line 23 , after " sporadic. " insert " The department shall retain jurisdiction over disputes arising under this provision to ensure that any such position is suitable when compared to the employee's former job and that such employment is regularly and continuously available to the employee. " .

     On page 6 , line 7 , delete " that has essential functions the employee can perform with or without " and insert " which is not sporadic employment resulting in an insubstantial income as defined in subdivision 62-4-52(2). " .

     On page 6 , line 8 , delete everything before " An " .

     On page 7 , delete lines 17 to 25 , inclusive .

     On page 8 , delete lines 1 to 4 , inclusive .


Moved by:      Senator Rounds
Second by:      Senator Dunn (Jim)
Action:      Prevailed by voice vote.

The Chair deferred SB 211 until 2/10/99.

          SB 209:   provide certain incentives for school consolidation.

Proponents:      Dave Knudson(Document 3), Governor's Office
          Gene Enck, School Boards Association
          Ray Christensen,Secretary, Department of Education and Cultural Affairs
          George Levin, Superintendent,Agar, South Dakota

MOTION:      DO PASS SB 209

Moved by:      Senator Everist
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (8-0-1-0)

Voting yes:      Dunn (Jim), Munson (David), Hutmacher, Lawler, Everist, Whiting, Rounds, Halverson

Excused:      Symens

          SB 248:   revise the distribution of Gaming Commission funds and to require legislative approval on the city of Deadwood's ability to obtain revenue bonds for historic preservation.



The Chair deferred SB 248 until 2/10/99.

MOTION:      ADJOURN

Moved by:      Senator Whiting
Second by:      Senator Munson (David)
Action:      Prevailed by voice vote.



Janet Judson

_________________________________

Committee Secretary
Harold Halverson, Chair


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