74th Legislative Session -- 1999

Committee: Senate State Affairs

Wednesday, February 24, 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 2/22/99

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

MOTION:      To suspend the rules to add the following confirmations to the day's agenda:
Confirmation of Harvey C. Jewett, Brown County, Aberdeen, South Dakota,
For reappointment to the State Board of Regents.
Confirmation of Patricia R. VanGerpen, Hughes County, Pierre, South Dakota,
As Secretary of the Department of Tourism.
Confirmation of Sandra J. Zinter, Hughes County, Pierre, South Dakota,
As Commissioner of the Bureau of Personnel.
Confirmation of Ray W. Christensen, Hughes County, Pierre, South Dakota,
As Secretary of the Department of Education and Cultural Affairs.
Moved by:      Senator Symens
Second by:      Senator Lawler
Action:      Prevailed by roll call vote.   (9-0-0-0)


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

MOTION:      To advise and consent to the confirmation of the reappointment of Harvey C. Jewett, Brown County, Aberdeen, South Dakota, to the State Board of Regents.

Moved by:      Senator Munson (David)
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

MOTION:      To advise and consent to the confirmation of Patricia R. VanGerpen, Hughes County, Pierre, South Dakota, as Secretary of the Department of Tourism.

Moved by:      Senator Munson (David)
Second by:      Senator Rounds
Action:      Prevailed by roll call vote.   (9-0-0-0)

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

MOTION:      To advise and consent to the confirmation of Sandra J. Zinter, Hughes County, Pierre, South Dakota, as Commissioner of the Bureau of Personnel.

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

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

MOTION:      To advise and consent to the confirmation of Darrell D. Cruea, Hughes County, Pierre, South Dakota, as Secretary of the Department of Agriculture.

Moved by:      Senator Symens
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

MOTION:      To advise and consent to the confirmation of John L. Cooper, Hughes County, Pierre, South Dakota, as Secretary of the Department of Game, Fish, and Parks.

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

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

MOTION:      To advise and consent to the confirmation of Ray W. Christensen, Hughes County, Pierre, South Dakota, as Secretary of the Department of Education and Cultural Affairs.

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

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

          HB 1299:   revise certain provisions regarding the practices of physician assistants, certified registered nurse anesthetists, nurse practitioners, and nurse midwives.

Proponents:      Doneen Hollingsworth(Document 7), Department of Health
          Brett Koenecke, Nurses'Association
          Steve Williams,South Dakota Academy of Physician Assistants
          Mike Smith,South Dakota Nurse Anesthetists
          Dave Hewett, South Dakota Healthcare Organization
Dean Krogman, South Dakota Medical Association
Document 8

MOTION:      DO PASS HB 1299

Moved by:      Senator Symens
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

MOTION:      PLACE HB 1299 ON CONSENT

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

          HB 1156:   require certain insurance policies to reimburse the services of licensed professional counselors -- mental health and marriage and family therapists.

Proponents:      Senator Brown, Brookings, South Dakota
          Dr. Daniel Digatono(Documents 9,10),South Dakota Marriage and Family Therapists
          Kelly Stern,South Dakota Counselors Association
          Ramona Wade,South Dakota Marriage and Family Therapists
Opponents:      Richard Tieszen, Associated School Boards
          Dave Christensen, Department of Social Services
          Dave Hewett,South Dakota Association of HealthCare Organizations
          Kristine Kreiter,Blue Cross/Blue Shield
          Jerry Wheeler, South Dakota Retailers Association
Darla Lyon, Department of Commerce and Regulation
Darla Pollman-Rogers, South Dakota Association of Life Underwriters,
Health Insurance Association of America

MOTION:      TO TABLE HB 1156

Moved by:      Senator Dunn (Jim)
Second by:      Senator Rounds
Action:      Prevailed by roll call vote.   (5-4-0-0)

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

Voting no:      Munson (David), Hutmacher, Lawler, Symens

          HB 1106:   repeal certain tax benefits available to railroads.

Proponents:      Governor William Janklow
Bill Dougherty, Burlington and Northern Railroad(Of Amendment o-1106e)
Opponents:      Kevin Schieffer, D,M,&E Railroad
          Mike Trosen, St. Lawrence, South Dakota
John Brown, Fall River County(Of Amendment o-1106e)
          Mark Hollenbeck, Fall River County(Of Amendment o-1106e)
Senator Vitter, Hill City, South Dakota (Of Amendment o-1106e)
MOTION:      AMEND HB 1106

o-1106d

     On page 1 , delete lines 13 to 15 of the House engrossed bill , inclusive , and insert:

"      Section 2. That § 10 -28-21.1 be repealed.

     10-28-21.1.   Credit against railroad tax for replacement or repair of rail line -- Exceptions. Any publicly operated railroad or railway corporation operating over rail lines located within this state may claim a credit against the tax levied on such rail lines for amounts which the railroad or railway corporation has certified as having been expended in the replacement and repair of such rail lines.

Only those expenses of a capital nature may be certified as an expense eligible for a credit pursuant to this section. The certification required by this section shall be on forms provided by the Department of Revenue. The labor and material expenses certified pursuant to this section shall be itemized separately. The credit provided in this section shall be applied proportionally across the railroad's entire mainline within this state. The credit shall be applied to tax liability over a three-year period in an amount equal to thirty-three and one-third percent the first year following certification; thirty-three and one-third percent of such an amount shall carry forward into the second year following certification; and thirty-three and one-third percent shall carry forward into the third year following certification. Each year's carryover shall be accumulated as a tax credit with other years' annual tax credits. No credit may be given for the repair or replacement of railway line necessitated by washout, fire, or train derailment. No rail line carrying over ten million gross ton miles per mile annually may receive a credit pursuant to this section. Any rail line which carries between five million and ten million gross ton miles per mile annually shall receive a credit for only one-half of the expenses certified pursuant to this section. The provisions of this section do not affect credits certified prior to January 30, 1994.

     Section 3. That § 49-16A-1 be amended to read as follows:

     49-16A-1.   Terms used in this chapter mean:

             (1)      "Common carrier," a carrier which holds itself out to the general public as engaged in the business of transporting freight in intrastate commerce which it is accustomed to and is capable of transporting from place to place in this state, for hire;

             (2)      "Department," the Department of Transportation created by chapter 1-44;

             (3)      "For hire," the condition of receiving remuneration of any kind, paid or promised, either directly or indirectly, for the transportation of freight;

             (4)      "Freight," all property tendered for transportation by a railroad;

             (5)      "Railroad," a any association or corporation , or other entity, other than a state agency or authority, engaged in operating a common carrier by rail regardless of motive power used, excluding street railroads;

             (6)      "Road," all track, right-of-way, bridges, mainlines, branchlines, spurs, sidetracks, interchanges , and all other fixtures and real property owned or operated by a railroad to discharge its obligations as a common carrier by rail;

             (7)      "Shipper," a consignor or consignee ;

             (8)    "Commission," the Transportation Commission created by §  1-44-4;

             (9)    "Negotiated in good faith," a bona fide offer to pay all costs and damages as compensation for the acquisition of property desired by the applicant for the construction

or reconstruction of a road, including the economic costs or diminution associated with or caused by the construction or reconstruction if there is a partial taking of property .

     Section 4. That § 49-16A-75 be amended to read as follows:

     49-16A-75.   A railroad may exercise the right of eminent domain in acquiring right-of-way as provided by statute , but only upon obtaining authority from the Governor or the commission, based upon a determination by the Governor or the commission that the railroad's exercise of the right of eminent domain would be for a public use consistent with public necessity. The Governor or the commission may, without limitation, consider the requirements of sections 5, 6, and 7 of this Act when granting or denying an application for authority to use eminent domain. The decision to grant or deny an application shall be made after reasonable notice and opportunity to be heard, pursuant to chapter 1-26 .

     Section 5. That chapter 49-16A be amended by adding thereto a NEW SECTION to read as follows:

     The commission shall in accordance with chapter 1-26, promulgate rules:

             (1)    Establishing a form upon which a railroad may apply for authority to exercise the right of eminent domain;

             (2)    Specifying the information to be submitted by an applicant; and

             (3)    Administering applications for authority to exercise the right of eminent domain.

     Section 6. That chapter 49-16A be amended by adding thereto a NEW SECTION to read as follows:

     The applicant has the burden of proving by clear and convincing evidence that the exercise of the right of eminent domain is a public use consistent with public necessity.

     Section 7. That chapter 49-16A be amended by adding thereto a NEW SECTION to read as follows:

     A railroad's exercise of the right of eminent domain is a public use consistent with public necessity only if the use of eminent domain:

             (1)    Has as purpose providing railroad transportation to shippers in South Dakota, for commodities produced, manufactured, mined, grown, used, or consumed in South Dakota;

             (2)    Is proposed by an applicant with the financial resources necessary to complete the proposed construction or reconstruction along with any related facilities, construction, or mitigation which are necessary to protect against harm to the public safety, convenience, or other adverse socioeconomic or environmental impact, as evidenced by an irrevocable

financing commitment from a lender with adequate capitalization to fulfill its commitment;

             (3)    Is proposed by an applicant who has complied with chapter 34A-9;

             (4)    Is proposed by an applicant who has negotiated in good faith to privately acquire sufficient property without the use of eminent domain;

             (5)    Is proposed by an applicant who has filed a plat, as required by §  49-16A-64, and that plat specifically sets forth the route of the road to be constructed or reconstructed, identifies each affected landowner, and specifies the location, along with construction methods and engineering specifications for all main lines, sidings, yards, bridges, crossings, safety devices, switches, signals, and maintenance facilities; and

             (6)    Provides that pipeline companies, electric utilities, public utilities, telecommunication companies, and rural water systems have the right to the use of the right-of-way for the placement of facilities, without fee, subject to reasonable regulation as to location and placement.

     Section 8. Whereas, this Act is necessary for the immediate preservation of the public peace, health, or safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval. "

     Delete pages 2 and 3 .


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

MOTION:      To recess at 10:00 A.M. to reconvene at a later time.

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

The Committee Reconvened at 3:15 P.M.
MOTION:      AMEND THE AMENDMENT

o-1106e

     On the pending amendment (o-1106d), after Section 7, insert:

"      Section 7A. That § 10-28-16 be amended to read as follows:


     10-28-16.   The Department of Revenue shall , on or before the fourth Monday in August, each year, transmit to the county auditor of each county through which any railroad runs, a statement showing the length of main track, of main line or lines, and the branches thereof and sidetracks within such county, and the assessed value based on a statewide formula that weights traffic (ton miles) seventy-five thirty-three and one-third percent and miles of track in the county by twenty-five sixty-six and two-thirds percent. The county auditor shall then distribute the value to each taxing district where the line runs on a per mile basis within the county. "


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

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

Excused:      Whiting, Rounds

MOTION:      AMEND THE AMENDMENT

o-1106f

     On the pending amendment (o-1106d), delete Section 8.

     In Section 7, subdivision (6), delete "pipeline companies,".

     In Section 7, subdivision (6), line 3, after "placement of" insert "underground".


Moved by:      Senator Rounds
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

MOTION:      DO PASS HB 1106 AS AMENDED

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

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

MOTION:      TO AMEND TITLE OF HB 1106

o-1106td

     On page 1 , line 1 of the House engrossed bill , after " railroads " insert " , to revise certain provisions regarding the right of eminent domain for railroads, and to revise the formula for assigning assessed railroad valuation to counties " .


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

          HB 1198:   revise certain provisions regarding the expenses of state officers and employees which are reimbursable.

Proponents:      Senator Kleven, Sturgis, South Dakota
          Jeff Fox, South Dakota Ag Producers Association
          Bob Sahr, Bureau of Personnel

MOTION:      DO PASS HB 1198

Moved by:      Senator Symens
Second by:      Senator Hutmacher
Action:      Prevailed by roll call vote.   (8-1-0-0)

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

Voting no:      Everist

          HB 1240:   declare that the South Dakota Oilseeds Council, the South Dakota Soybean Research and Promotion Council, and the South Dakota Corn Utilization Council, are not agencies of the State of South Dakota, to repeal their rulemaking authority, and to revise other provisions relating to them and the Department of Agriculture.

Proponents:      Jeff Fox, South Dakota Ag Producers Association
Opponents:      Bob Sahr, Bureau of Personnel

MOTION:      DO PASS HB 1240

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

MOTION:      SUBSTITUTE MOTION TO TABLE HB 1240

Moved by:      Senator Whiting
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

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

Proponents:      Doug Hansen, Department of Game, Fish, and Parks
Opponents:      Gail Brock, South Dakota Association of Towns and Townships

MOTION:      DO PASS HB 1038

Moved by:      Senator Lawler
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

MOTION:      PLACE HB 1038 ON CONSENT

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

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

Proponents:      Representative Cutler, Claremont, South Dakota
          Senator Dennert,Columbia, South Dakota

MOTION:      DO PASS HB 1291

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

MOTION:      SUBSTITUTE MOTION TO TABLE HB 1291

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

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

Voting no:      Hutmacher

MOTION:      ADJOURN

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



Janet Judson

_________________________________

Committee Secretary
Harold Halverson, Chair


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