74th Legislative Session -- 1999
Committee: Senate State Affairs
Friday, February 12, 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 2/10/99
Moved by:
Senator Lawler
Second by:
Senator Munson (David)
Action:
Prevailed by voice vote.
SB 117:
repeal certain voter registration requirements.
MOTION:
DO PASS SB 117
Moved by:
Senator Symens
Second by:
Senator Lawler
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION WITHOUT RECOMMENDATION
Moved by:
Senator Munson (David)
Second by:
Senator Everist
Action:
Prevailed by roll call vote.
(8-0-1-0)
Voting yes:
Dunn (Jim), Munson (David), Lawler, Symens, Everist, Whiting, Rounds,
Halverson
Excused:
Hutmacher
SB 135:
repeal the inheritance tax, to create an inheritance tax reduction fund, and
to appropriate certain sales and use tax collections to the fund.
MOTION:
DO PASS SB 135
Moved by:
Senator Symens
Second by:
Senator Lawler
Action:
Was not acted on.
MOTION:
SUBSTITUTE MOTION DO NOT PASS SB 135
Moved by:
Senator Rounds
Second by:
Senator Everist
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
Senator Halverson passed the gavel to Senator Rounds.
SB 144:
revise the definition of basic local exchange service for the purposes of
regulating telecommunications services.
MOTION:
TO TABLE SB 144
Moved by:
Senator Halverson
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
Senator Halverson resumed the Chair.
SB 154:
revise certain provisions regarding the Public Utilities Commission
implementation of the federal Telecommunications Act of 1996.
MOTION:
TO TABLE SB 154
Moved by:
Senator Munson (David)
Second by:
Senator Dunn (Jim)
Action:
Prevailed by roll call vote.
(9-0-0-0)
Voting yes:
Dunn (Jim), Munson (David), Hutmacher, Lawler, Symens, Everist, Whiting,
Rounds, Halverson
SB 183:
establish a guaranty loan program for the restructuring of agricultural debt.
Presented by:
Senator Symens,Amherst, South Dakota
MOTION:
DEFER SB 183 UNTIL THE 41ST LEGISLATIVE DAY
Moved by:
Senator Rounds
Second by:
Senator Everist
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
SCR 4:
In support of country-of-origin labeling of meat products.
Proponents:
Senator Frank Kloucek, Scotland, South Dakota
MOTION:
ADOPT RESOLUTION SCR4
Moved by:
Senator Symens
Second by:
Senator Lawler
Action:
Prevailed by roll call vote.
(7-2-0-0)
Voting yes:
Hutmacher, Lawler, Symens, Everist, Whiting, Rounds, Halverson
Voting no:
Dunn (Jim), Munson (David)
SB 223:
make the state treasurer an ex officio voting member of certain boards or
commissions.
Proponents:
Richard Butler, State Treasurer(Document 1)
Opponents:
David Volk, Secretary, Department of Commerce and Regulation
MOTION:
TO TABLE SB 223
Moved by:
Senator Everist
Second by:
Senator Rounds
Action:
Prevailed by roll call vote.
(5-2-2-0)
Voting yes:
Dunn (Jim), Everist, Whiting, Rounds, Halverson
Voting no:
Lawler, Symens
Excused:
Munson (David), Hutmacher
SB 104:
provide for the assessment of property based on its acquisition value.
Proponents:
Senator Madden, Rapid City, South Dakota
Representative Cutler,Claremont, South Dakota
MOTION:
DEFER SB 104 UNTIL THE 41ST LEGISLATIVE DAY
Moved by:
Senator Rounds
Second by:
Senator Munson (David)
Action:
Prevailed by roll call vote.
(9-0-0-0)
Voting yes:
Dunn (Jim), Munson (David), Hutmacher, Lawler, Symens, Everist, Whiting,
Rounds, Halverson
SB 238:
authorize the Public Utilities Commission to regulate certain
telecommunications services.
Proponents:
Dave Knudson, Office of Governor
Jim Burg, Commissioner, Public Utilities Commission
Opponents:
Tom Adam,MCI(As Amended)
Harry Christianson, AT&T(As Amended)
MOTION:
AMEND SB 238
j-238a
On the printed bill,
delete everything after the enacting clause and insert:
"
Section 1. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
The telecommunications company of any subscriber may not be changed without the
telecommunications service subscriber's authorization. The telecommunications service subscriber's
authorization shall be evidenced either by a written authorization signed by the subscriber or by the
use of an independent third-party verification company which complies with the provisions of
sections 2 and 3 of this Act, or by any other means authorized by the commission. Products or
services may not be listed on a subscriber's bill unless authorized by the subscriber. The commission
may promulgate rules pursuant to chapter 1-26 concerning procedures, requirements, and standards
for changing a subscriber's telecommunications company and for listing products and services on
a subscriber's bill.
Section 2. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
If an independent third-party verification company obtains a subscriber's oral confirmation
regarding a change of a designated telecommunications company for interexchange or local
exchange telecommunications service, the third-party verification shall include:
(1) A statement that the purpose of the call is to verify the subscriber's intent to change to the
newly requested telecommunications company. The newly requested interexchange or
local telecommunications company shall be clearly identified to the subscriber. Reference
to use of another telecommunications company's network or facilities, if stated, shall be
secondary in nature to the prominent identification of the telecommunications company
which will be providing service and setting the rates for the subscriber's service;
(2) Confirmation that the person whose authorization for a telecommunications company
change is being verified is the subscriber on the account or a person authorized by the
subscriber to make decisions regarding the telecommunications account on behalf of the
subscriber, whether that subscriber is an individual person or a business;
(3) Verification data unique to the subscriber such as the subscriber's date of birth; and
(4) The name and toll-free telephone number of the newly requested telecommunications
company.
The third-party verification company shall electronically record the telephone call that
confirms the subscriber's change of a designated telecommunications company. The electronic
recording shall include the complete statement of the service being changed and the subscriber's
complete response. The electronic recording shall be retained by the third-party verification company
for two years.
Section 3. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
The third-party verification company shall meet each of the following criteria:
(1) Be independent of the telecommunications company that seeks to provide the subscriber's
new service;
(2) Not be managed, controlled, or directed or owned wholly or in part, by the
telecommunications company that seeks to provide the subscriber's new service;
(3) Operate from facilities physically separate from those of the telecommunications
company that seeks to provide the subscriber's new service; and
(4) Not derive commissions or compensation based upon the number of sales confirmed.
Section 4. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
A telecommunications company selling more than one type of telecommunications service
must obtain separate authorization to change a telecommunications company from the subscriber for
each service sold, although the authorizations may be made within the same solicitation. Each
authorization must be verified separately from any other authorizations obtained in the same
solicitation.
Section 5. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
A subscriber is not liable for any charges imposed by a telecommunications company that
initiates a telecommunications carrier change without authorization from the subscriber or for the
billing of unauthorized products or services. In addition, the telecommunications company that
initiates the unauthorized change or the billing of unauthorized products or services shall pay to the
subscriber one thousand dollars.
Section 6. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
Any person who violates this Act or any rules promulgated pursuant to this Act is subject to
a civil penalty to be imposed by the commission, after notice and opportunity for hearing. The
commission may impose a civil fine of not more than twenty thousand dollars for each offense. In
determining the amount of the penalty upon finding a violation, or the amount of the compromise
settlement, the commission shall consider the appropriateness of the penalty to the size of the
business of the person charged, prior offenses and compliance history, the good faith of the person
charged in attempting to achieve compliance, and such other matters as justice may require. All
penalties collected pursuant to this section shall be deposited in the state treasury. In addition to
assessing a civil penalty for a violation of this Act, the commission may revoke or suspend a
telecommunications company's certificate of authority for repeated offenses.
Section 7. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
If the commission receives more than two complaints within thirty days regarding violations
of section 1 of this Act, the commission may require the telecommunications company responsible
for the violations to provide the commission with a complete list of its current subscribers, including
the subscribers' billing addresses. The commission may contact each subscriber to determine whether
any subscriber has been subject to an unauthorized change in a telecommunications company or
billed for unauthorized products or services. If the commission finds, after notice and opportunity
for hearing, that a telecommunications company has committed two separate violations of section
1 of this Act within one year, the commission may assess the costs of contacting subscribers to the
telecommunications company.
Section 8. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
If an alleged violation of this Act results in a contested case proceeding or if allowed by
section 7 of this Act, the commission may assess the actual costs of the contested case proceeding
or contacting subscribers to the telecommunications company. The assessment shall be limited to
actual amounts expended by the commission for commission employee time, expert witnesses, court
reporter fees, document and exhibit preparation, and other necessary and related expenses incurred
by the commission. The telecommunications company may, within thirty days after the assessment
is mailed, file written objections with the commission stating the grounds upon which it claims that
the assessment is not reasonable. The commission shall within thirty days of receiving such
objections hold a hearing and issue an order in accordance with its findings as to the proper amount
to be assessed to the telecommunications company. The order may be appealed pursuant to chapter
1-26.
Section 9. That chapter 49-31 be amended by adding thereto a NEW SECTION to read as
follows:
For the purpose of this Act, the term, subscriber, means any person who contracts with a
telecommunications company for telecommunications services.
Section 10.That
§
37-30A-9
be repealed.
37-30A-9.
Notwithstanding the provisions of
§
37-30A-8, no person may change the designated
telecommunications company as defined in
§
49-31-1(9) which is providing service to a consumer
without the written confirmation in the form of a letter of agency from that consumer or confirmation
by a third-party verification company. The third-party verification company shall meet each of the
following criteria:
(1)
Be independent of the telecommunications company that seeks to provide the consumer's
new service;
(2)
Not be directly managed, controlled, or directed, or owned wholly or in part, by the
telecommunications company that seeks to provide the consumer's new service;
(3)
Operate from facilities physically separate from those of the telecommunications
company that seeks to provide the consumer's new service; and
(4)
Not derive commissions or compensation based upon the number of sales confirmed.
The telecommunications company that seeks to provide the consumer's new service shall
connect the consumer by telephone to the third-party verification company or shall arrange for the
third-party verification company to call the consumer to confirm the change. The third-party
verification company shall obtain the consumer's oral confirmation regarding the change and shall
record that confirmation. The record shall include the information requested by the third-party
verification company and the consumer's responses. The third-party verification company shall retain
that record for twelve months. The record shall be available to the Public Utilities Commission and
to the consumer at no cost. No information obtained from the consumer may be used for marketing
purposes. If the telecommunications company or a third-party verification company acting on its
behalf fails to comply with these third-party verification provisions, the Public Utilities Commission
may revoke the telecommunication company's certificate of authority and may impose a civil fine
of not less than two hundred dollars nor more than one thousand dollars for each offense. It is a
violation of
§
§
37-30A-1 to 37-30A-17 for any person to make such an unauthorized change.
"
Moved by:
Senator Rounds
Second by:
Senator Whiting
Action:
Prevailed by voice vote.
MOTION:
DO PASS SB 238 AS AMENDED
Moved by:
Senator Rounds
Second by:
Senator Hutmacher
Action:
Prevailed by roll call vote.
(7-0-2-0)
Voting yes:
Dunn (Jim), Munson (David), Hutmacher, Everist, Whiting, Rounds, Halverson
Excused:
Lawler, Symens
SB 180:
create a Bank of South Dakota and an advisory board of directors.
Presented by:
Senator Symens, Amherst, South Dakota
John Hoeven, Bank of North Dakota, Bismarck, North Dakota(Document 2,3,4)
MOTION:
TO TABLE SB 180
Moved by:
Senator Whiting
Second by:
Senator Dunn (Jim)
Action:
Was not acted on.
Motion was ruled out of order.
MOTION:
DEFER SB 180 UNTIL THE 41ST LEGISLATIVE DAY
Moved by:
Senator Everist
Second by:
Senator Whiting
Action:
Prevailed by roll call vote.
(5-3-1-0)
Voting yes:
Dunn (Jim), Munson (David), Everist, Whiting, Halverson
Voting no:
Hutmacher, Lawler, Symens
Excused:
Rounds
MOTION:
ADJOURN
Moved by:
Senator Lawler
Second by:
Senator Dunn (Jim)
Action:
Prevailed by voice vote.
Janet Judson
_________________________________
Committee Secretary
Harold Halverson, Chair
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