74th Legislative Session -- 1999

Committee: Senate State Affairs

Wednesday, February 10, 1999

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Dunn (Jim)
P      Munson (David)
P      Hutmacher
P      Lawler
P      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 2/8/99

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

          SB 206:   provide a legislative finding concerning the video lottery and to revise the payback from the video lottery machines.

Proponents:      Senator Paisley,Sioux Falls, South Dakota
          Tom Grey,Hanover, Illinois
          John Paulton,South Dakota Family Policy Council
          Richard Tieszen, Powerhouse Technologies Inc.
Opponents:      Rodger Leonard, South Dakota Lottery

MOTION:      AMEND SB 206

f-206

     On page 1 , line 13 of the printed bill , overstrike " two dollars " and insert " one dollar " .


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

MOTION:      DEFER SB 206 UNTIL THE 41ST LEGISLATIVE DAY

Moved by:      Senator Rounds
Second by:      Senator Everist
Action:      Prevailed by roll call vote.   (7-1-1-0)

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

Voting no:      Lawler

Excused:      Symens

          SB 139:   establish certain Legislative findings with regard to Article XXIX, section 1 of the Constitution.

Proponents:      Senator Frederick, Hayti, South Dakota

MOTION:      TO TABLE SB 139

Moved by:      Senator Rounds
Second by:      Senator Everist
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 207:   authorize additional off-sale retail liquor licenses in certain first class municipalities.

Proponents:      Senator Everist, Sioux Falls, South Dakota

MOTION:      TO TABLE SB 207

Moved by:      Senator Rounds
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.

Proponents:      Dave Knudson, Office of Governor

MOTION:      TO TABLE SB 248

Moved by:      Senator Rounds
Second by:      Senator Dunn (Jim)
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 210:   provide mandatory prison sentences for certain violations regarding controlled substances and marijuana.

Proponents:      Governor William Janklow(Document 1)
          Dave Knudson, Office of the Governor
Opponents:      Michael Buenger, Unified Judicial System
          Rodney Steele,Unified Judicial System
          Eugene Dobberpuh, Unified Judicial System
          Janine Kern, Unified Judicial System
          John Fitzgerald, Unified Judicial System
          Mark Smith, States Attorney, Hughes County, Pierre, South Dakota
Tom Barnett, State Bar of South Dakota
Senator Halverson appointed Senator Rounds and Senator Hutmacher to a subcommittee for SB210.
The Chair deferred SB 210 until 2/12/99.

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

Proponents:      Dave Knudson,Office of Govenor
          Ron Wheeler, Governors Office of Economic Development
          Dr. Wayne Anderson, Spearfish, South Dakota
          Dr. Mary Carpenter, Winner, South Dakota
          Larry Zikmund,Associated General Contractors, Building Chapter
Dave Hewett, South Dakota Association of Healthcare Organizations
James Marsh,Department of Labor
Opponents:      Paul Aylward, South Dakota AFL-CIO
          Jeff Barth, Sioux Falls Trades and Labor Assembly
          Representative Gil Koetzle,Sioux Falls, South Dakota
          Senator Frank Kloucek, Scotland, South Dakota
The State Affairs Committee recessed at 10:00 A.M. to reconvene at 8:00 P.M., 2/10/99.

The State Affairs Committee reconvened at 8:00 P.M., 2/10/99.
MOTION:      DO PASS SB 211 AS AMENDED

Moved by:      Senator Everist
Second by:      Senator Munson (David)
Action:      Prevailed by roll call vote.   (6-3-0-0)


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

Voting no:      Hutmacher, Lawler, Symens

          SB 191:   designate kuchen as the official state dessert.

Proponents:      Senator Lawler, Aberdeen, South Dakota
          Sherlock Hirning, Eureka Economic Development Company

MOTION:      DO PASS SB 191

Moved by:      Senator Lawler
Second by:      Senator Everist
Action:      Prevailed by roll call vote.   (9-0-0-0)

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

          SB 233:   provide increased funding for the maintenance of state and local highways and roads.

Proponents:      Senator Rounds(Document 2), Pierre, South Dakota
          Jim Jenssen, Department of Transportation
          Phil Testerman, Miller, South Dakota
          Jim Keyes(Opposed to amendment), Associated General Contractors
          Ronald Blachford,South Dakota Association of County Highway Superintendents
Yvonne Vik, South Dakota Municipal League
Dan Nelson, Sioux Falls Area Chamber of Commerce
Mike Weise, Commissioner, Brown County, Aberdeen, South Dakota(Opposed to amendment)
Pat Mcelgunn, Rapid City Area Chamber of Commerce
Gail Brock, South Dakota Association of Towns and Townships
Dick Howard(Documents 3,4),Executive Director, County Commissioners


MOTION:      AMEND SB 233

o-233

     On page 1 , delete lines 16 and 17 of the printed bill , and insert:

"      Section 2. That chapter 10-47B be amended by adding thereto a NEW SECTION to read as follows:

     In addition to the fuel excise tax rates imposed by §  10-47B-4, there are imposed additional fuel excise tax rates as follows:

             (1)      Motor fuel (except ethanol blends, E85 and M85 blends, and aviation gasoline) -$.02 per gallon;
             (2)      Special fuel (except jet fuel) -$.02 per gallon;
             (3)      Ethanol blends -$.02 per gallon;
             (4)      E85 and M85 -$.02 per gallon;
             (5)      Liquid petroleum gas -$.02 per gallon; and
             (6)      Compressed natural gas -$.02 per gallon.

     Section 3. That chapter 10-47B be amended by adding thereto a NEW SECTION to read as follows:

     Any tax collected pursuant to section 2 of this Act shall be deposited in the local government highway and bridge fund created pursuant to §  32-11-34.

     Section 4. That § 10-47B-5 be amended to read as follows:

     10-47B-5.   A fuel excise tax is imposed on all motor fuel and special fuel that is removed from a terminal in this state at the rack or used at the terminal, unless it is removed by an exporter specifically licensed to export from this state into the state which is indicated as the destination state on the bill of lading issued by the terminal operator for the fuel, or the fuel is ethyl alcohol and it has been removed by a licensed blender or supplier and is invoiced separately from gasoline and not sold as an ethanol blend. The tax imposed shall be at the rate indicated in §  10-47B-4 and section 2 of this Act .

     Section 5. That § 10-47B-6 be amended to read as follows:

     10-47B-6.   A fuel excise tax is imposed on all motor fuel or special fuel, except unblended ethyl alcohol, imported into this state in the bulk cargo area of any motor vehicle, vessel rail car, or trailer by any means other than through a terminal located in this state, upon its entry into this state. The tax imposed shall be at the rate indicated in §  10-47B-4 and section 2 of this Act .

     Section 6. That § 10-47B-7 be amended to read as follows:

     10-47B-7.   A fuel excise tax is imposed on all special fuel used in this state in the engine fuel supply tank of qualified motor vehicles involved in interstate commerce. The tax imposed shall be at the rate indicated in §  10-47B-4 and section 2 of this Act .

     Section 7. That § 10-47B-8 be amended to read as follows:

     10-47B-8.   A fuel excise tax is imposed on all ethyl alcohol and other substances blended with motor fuel or undyed special fuel unless the ethyl alcohol or other substance has previously been taxed by the provisions of this chapter. The tax imposed shall be at the rate indicated in §  10-47B-4 and section 2 of this Act of the dominant motor fuel or undyed special fuel with which the substance is blended unless the substance is ethyl or methyl alcohol blended by a licensed blender to create an ethanol, E85, or M85 blend in which case it shall be at the ethanol, E85, or M85 blend rate as indicated in §  10-47B-4 and section 2 of this Act .

     Section 8. That § 10-47B-9 be amended to read as follows:

     10-47B-9.   A fuel excise tax is imposed on unblended ethyl alcohol sold by an ethanol producer, supplier, importer, or blender unless the sale is made to a licensed supplier for resale, licensed blender, or licensed exporter for export to another state who is specifically licensed to export to the state. The tax imposed shall be at the rate set for motor fuel in §  10-47B-4 and section 2 of this Act .

     Section 9. That § 10-47B-10 be amended to read as follows:


     10-47B-10.   A fuel excise tax is imposed on all motor fuel or special fuel which has been removed from a terminal in this state at the rack by a licensed exporter for which the bill of lading issued for the fuel by the terminal operator indicates a destination state other than South Dakota, and the fuel is later diverted by the exporter to a destination within this state for off-loading unless the fuel is ethyl alcohol, the exporter is licensed as a blender or supplier and the product is purchased and invoiced separately from gasoline and not as an ethanol blend. The tax imposed shall be at the rate set for motor fuel or special fuel in §  10-47B-4 and section 2 of this Act .

     Section 10. That § 10-47B-11 be amended to read as follows:

     10-47B-11.   A fuel excise tax is imposed on liquid petroleum gas and compressed natural gas sold or used by licensed vendors in this state for use in motor vehicles unless liquid petroleum gas is sold to a licensed liquid petroleum gas user. The tax imposed shall be at the rate set forth in §  10-47B-4 and section 2 of this Act .

     Section 11. That § 10-47B-12 be amended to read as follows:

     10-47B-12.   A fuel excise tax is imposed on liquid petroleum gas used in the engine fuel supply tank of a motor vehicle owned or operated by a liquid petroleum user which is used on the public highways or roads of this state. The tax imposed shall be at the rate set forth in §  10-47B-4 and section 2 of this Act .

     Section 12. That § 10-47B-13 be amended to read as follows:

     10-47B-13.   A fuel excise tax is imposed on all motor fuel, special fuel, and liquid petroleum gas used in the engine fuel supply tank of self-propelled machinery, equipment, or vehicles used in highway construction or repair work done in this state within the right-of-way, unless the self-propelled machinery, equipment, and vehicles are owned by this state or a county or municipality of this state. The tax imposed shall be at the rate indicated for motor fuel, special fuel, or liquid petroleum gas in §  10-47B-4 and section 2 of this Act .

     Section 13. That § 10-47B-17 be amended to read as follows:

     10-47B-17.   The amount of the inventory tax imposed by §  10-47B-14 is equal to the special fuel tax rate indicated in §  10-47B-4 and section 2 of this Act times the gallons in storage as determined under §  10-47B-15.

     Section 14. That § 10-47B-148 be amended to read as follows:

     10-47B-148.   Any Except for any tax collected and deposited as provided in sections 2 and 3 of this Act, any tax, fee, penalty assessment, and interest assessment collected under this chapter are to be deposited with the state treasurer who shall credit the amount received to the motor fuel tax fund. However, taxes collected under this chapter on behalf of other jurisdictions under the provisions of an interstate agreement are to be distributed under the provisions of that agreement. "


     Delete pages 2 to 6 , inclusive .


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

MOTION:      To table Amendment o-233

Moved by:      Senator Everist
Second by:      Senator Whiting
Action:      Prevailed by roll call vote.   (6-3-0-0)

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

Voting no:      Hutmacher, Lawler, Symens

MOTION:      DO PASS SB 233

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

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

Voting no:      Hutmacher, Symens

          SB 241:   increase the excise tax on certain fuel and to distribute a portion of the increase to local governments.

Opponents:      Jim Keyes, Associated General Contractors

MOTION:      TO TABLE SB 241

Moved by:      Senator Everist
Second by:      Senator Whiting
Action:      Prevailed by roll call vote.   (6-3-0-0)

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

Voting no:      Hutmacher, Lawler, Symens

MOTION:      ADJOURN

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



Janet Judson

_________________________________

Committee Secretary
Harold Halverson, Chair


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