75th Legislative Session -- 2000

Committee: Senate Commerce

Thursday, February 3, 2000

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P      Lawler
P      Olson
P      Paisley
P      Valandra
E      Whiting
P      Daugaard, Vice-Chair
P      Shoener, Chair


OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Shoener


MOTION:      TO APPROVE THE MINUTES OF February 1, 2000

Moved by:      Senator Olson
Second by:      Senator Daugaard
Action:      Prevailed by voice vote.

          SB 168:   establish certain requirements regarding the sale, distribution, and importation or cigarettes.



MOTION:      TO TABLE SB 168

Moved by:      Senator Olson
Second by:      Senator Daugaard
Action:      Prevailed by roll call vote.   (5-0-2-0)

Voting yes:      Lawler, Olson, Valandra, Daugaard, Shoener

Excused:      Paisley, Whiting


          SB 162:   provide for the creation of a no solicitation calls list for persons wishing not to receive unsolicited telephone calls, to create a telephone solicitation account, and to establish certain fees and civil penalties.

Presented by:      Pam Nelson, PUC Commissioner (Handout a & b)
Proponents:      Shirley Eisnich, AARP
          Jim Burg, PUC Commissioner
Opponents:      Mac McCracken, US West
          Harry Christianson, ATT
          Jerry Wheeler, SDRA
          Tom Adam, MCI Worldcom
          David Owen, SD Chamber of Commerce
          Bob Sutton, SDBA
          Dean Krogman, SDAR

MOTION:      DO PASS SB 162

Moved by:      Senator Olson
Second by:      Senator Valandra
Action:      Failed by roll call vote.   (2-4-1-0)

Voting yes:      Olson, Valandra

Voting no:      Lawler, Paisley, Daugaard, Shoener

Excused:      Whiting

MOTION:      DEFER SB 162 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Senator Daugaard
Second by:      Senator Paisley
Action:      Prevailed by roll call vote.   (4-2-1-0)

Voting yes:      Lawler, Paisley, Daugaard, Shoener

Voting no:      Olson, Valandra

Excused:      Whiting

          SB 202:   revise certain provisions relating to conciliation of labor disputes.

Presented by:      Representative Larry Lucas, Prime Sponsor
Proponents:      Robert Stevens, SDEA (Handout c & d)
Opponents:      James Marsh, DOL
          Bob Sahr, BOP

MOTION:      DO PASS SB 202

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

MOTION:      SUBSTITUTE MOTION DEFER SB 202 UNTIL THE 36TH LEGISLATIVE DAY

Moved by:      Senator Daugaard
Second by:      None
Action:      Died for a lack of a second

MOTION:      DO PASS SB 202 (original motion)

Moved by:      Senator Olson
Second by:      Senator Lawler
Action:      Prevailed by roll call vote.   (4-2-1-0)

Voting yes:      Lawler, Olson, Paisley, Valandra

Voting no:      Daugaard, Shoener

Excused:      Whiting

          SB 96:   regulate certain service contracts and to provide for the enforcement of the Act.
Gavel passed to Vice Chair Daugaard

Presented by:      R Van Johnson, SDADA
Proponents:      Darla Lyon, Div of Insurance
          Robert Miller, SD Electric Utility Companies

MOTION:      AMEND SB 96

96ja

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

"      Section  1.  That § 58-1-3 be amended to read as follows:

     58-1-3.   No provision of this title applies with respect to:

             (1)      Fraternal benefit societies, except as stated in chapter 58-37A;

             (2)      Bail bondsmen, other than corporate sureties and their agents, except as stated in chapter 58-22;

             (3)      Motor vehicle service contracts , extended service agreements, or other contracts by which a motor vehicle dealer licensed under chapter 32-6B or manufacturer of motor vehicles contracts to indemnify a motor vehicle owner or lessor against loss due to mechanical breakdown, or freedom from defective or worn parts or equipment of motor vehicles which are contracts or agreements to perform or indemnify for a specific duration the repair, replacement, or maintenance of motor vehicles for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service. Consideration for a motor vehicle service contract shall be stated separately from the price of the motor vehicle. The term does not include mechanical breakdown insurance or maintenance agreements ;

             (4)      Service agreements or extended warranty plans for which the primary purpose is to provide service, repair, or replacement on consumer goods or products including appliances, merchandise, or equipment, or mechanical/electrical systems in single or multiple-family dwellings. Incidental indemnity payments under such plans where service, repair, or replacement is not feasible or economical does not void this exemption;

             (5)      Any person, trust, or other entity proven to be under the exclusive regulatory authority of the federal government or another state agency;

             (6)      Any agreement to provide liability protection entered into pursuant to chapter 1-24 is exempt from the regulatory requirements of Title 58, except to forms of insurance coverage provided by an insurer otherwise subject to the insurance laws of this state.

     Section  2.  That § 58-1-2 be amended by adding thereto NEW SUBDIVISIONS to read as follows:

     "Maintenance agreement," a contract of limited duration that provides for scheduled maintenance only;

     "Mechanical breakdown insurance," any contract or agreement to perform or indemnify for a specific duration the repair, replacement, or maintenance of property for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear. "



Moved by:      Senator Olson
Second by:      Senator Paisley
Action:      Prevailed by voice vote.

MOTION:      DO PASS SB 96 AS AMENDED

Moved by:      Senator Olson
Second by:      Senator Paisley
Action:      Prevailed by roll call vote.   (6-0-1-0)

Voting yes:      Lawler, Olson, Paisley, Valandra, Daugaard, Shoener

Excused:      Whiting

MOTION:      TO AMEND TITLE OF SB 96

96jta

     On page 1 , line 1 of the printed bill , delete everything after " Act to " and insert " regulate motor vehicle service contracts. " .

     On page 1 , delete line 2 .


Moved by:      Senator Shoener
Second by:      Senator Olson
Action:      Prevailed by voice vote.

MOTION:      PLACE SB 96 ON CONSENT

Moved by:      Senator Paisley
Second by:      Senator Olson
Action:      Prevailed by voice vote.

Gavel returned to Chair Shoener

          SB 192:   reenact the revised secured transactions article of the Uniform Commercial Code.

Presented by:      Senator Barbara Everist,Prime Sponsor
Proponents:      Tom Adam SDBA (Handout e)

MOTION:      DO PASS SB 192

Moved by:      Senator Lawler
Second by:      Senator Daugaard
Action:      Prevailed by roll call vote.   (6-0-1-0)

Voting yes:      Lawler, Olson, Paisley, Valandra, Daugaard, Shoener

Excused:      Whiting

MOTION:      ADJOURN

Moved by:      Senator Olson
Second by:      Senator Daugaard
Action:      Prevailed by voice vote.



Margaret Nickels

_________________________________

Committee Secretary
Jerry J. Shoener, Chair


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