76th Legislative Session _ 2001

Committee: Senate Commerce
Tuesday, February 13, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bogue
P    McCracken
P    Sutton (Dan)
P    Volesky
P    Whiting
P    Daugaard, Vice-Chair
P    Munson, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Munson

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 8TH

Moved by:    McCracken
Second by:    Bogue
Action:    Prevailed by voice vote.

        Gavel passed to Senator Bogue and then on to Vice Chair Daugaard

         SB 225: revise certain provisions relating to insurance taxes, cash surrender values of insurances policies, and the payment of insurance benefits.

Presented By:    Jeremiah Murphy, Citibank, Sioux Falls, SD
Proponents:    Darla Lyon, Division of Insurance

MOTION:     AMEND SB 225

225jc
     On page 2 of the printed bill, delete lines 8 to 13 , inclusive, and insert:

             "(1)    On each domestic company, two and one-half percent of premiums and one and one-fourth percent of the consideration for annuity contracts . However, the rate for life insurance and annuities shall be computed as follows:

             (a)    Two and one-half percent of premiums for a life policy on the first one hundred thousand dollars of annual premium, and eight one-hundredths of a percent for that portion of the annual life premiums exceeding one hundred thousand dollars; and ".

     On page 2 , line 16, after " for " insert " that portion of the ".

     On page 2 , delete line 24 , and insert:

             " (a)    Two and one-half percent of premiums , and one . However, for that portion of the life insurance premiums exceeding one hundred thousand dollars annually, the rate shall be eight one-hundredths of a percent; and ".

     On page 3 , delete lines 1 to 3 , inclusive.

     On page 3 , line 6, after " for " insert " that portion of the ".

     On page 3 , delete lines 10 to 12 , inclusive, and insert:

             " (a)    Two and one-half percent of premiums and one . However, for that portion of the life insurance premiums exceeding one hundred thousand dollars annually, the rate shall be eight one-hundredths of a percent; and one ".

     On page 3 , line 15, after " for " insert " that portion of the ".

     On page 4 , delete line 24, and insert "the loan value referred to in §  58-15-15 shall be".

     On page 5 , line 1, delete " hundred percent of " .

     On page 5 , line 3, after " therefor. " insert " For policies where the cash surrender value pursuant to §  58-15-33 is in excess of one million dollars, the loan value shall be equal to the portion of the cash surrender value that can immediately be converted to cash, pursuant to the policyholder's consent. The consent of the policyholder shall be on a form prescribed by the director in rules promulgated pursuant to chapter 1-26. ".

     On page 5 , line 12, delete " previous " .

     On page 5 , line 12, after " policyholder. " insert "The consent of the policyholder shall be on a form prescribed by the director in rules promulgated pursuant to chapter 1-26.".

     On page 5 , line 19, after " computed " insert " commencing the latter of ".

     On page 5 , line 20, delete " until " and insert " or ".

     On page 5 , line 21, after " payment. " insert "The consent of the policyholder shall be on a form prescribed by the director in rules promulgated pursuant to chapter 1-26.".

     On page 7 , line 11, delete " previous " .

     On page 7 , line 12, after " policyholder. " insert "The consent of the policyholder shall be on a form prescribed by the director in rules promulgated pursuant to chapter 1-26.".

Moved by:    Bogue
Second by:    McCracken
Action:    Prevailed by voice vote.

 MOTION:     DO PASS SB 225 AS AMENDED

Moved by:    Bogue
Second by:    McCracken
Action:    Prevailed by roll call vote.(6-0-1-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Whiting, Daugaard

Excused:    Munson

        Gavel returned to Chair

         SB 97: provide for implied covenants of good faith and fair dealing in certain employment contracts.

Presented By:    Senator Koetzle, Sponsor
Proponents:    Paul Aylward, SD AFL-CIO
Opponents:    James Marsh, Dept of Labor
        David Owen, SD Chamber of Commerce
        Bob Sahr, Bureau of Personnel
        Brent Wilbur, SD Bankers Association
        Bob Riter, SD Nat'l Federation of Independent Business
        Jim Hood, SD Retailers


MOTION:     DEFER SB 97 TO THE 41ST LEGISLATIVE DAY

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

Voting Yes:    Bogue, McCracken, Whiting, Daugaard, Munson

Voting No:    Sutton (Dan), Volesky

         SB 165: provide for incentives for development of certain commercial small power production facilities.

Presented By:    Brian Meyer, SD Rural Electric Association

MOTION:     AMEND SB 165

165ja
     On page 1, line 13 of the printed bill, delete " entitled to the following incentives: " and insert "subject to the provisions of this Act for any new or expanded facility.".

     On page 1 , delete lines 14 and 15 , and insert:

"      Section 2. Rural electric cooperatives developing commercial small power production facilities utilizing renewable energy are not subject to tax pursuant to §  10-35-1.2 but are subject to a gross receipts tax as defined in § 10-36-6.".


     On page 2 , delete lines 1 to 8 , inclusive.

     On page 2 , line 20, delete " and for sales or use " .

     On page 2 , line 21, delete " taxes imposed and paid by such person under the provisions of chapters 10-45 and 10-46 " .

     On page 3 , line 5, delete " 6 " and insert "7".

     On page 3 , line 7, after " cost " insert ", excluding any associated transmission facilities".

     On page 3 , line 23, delete " 8 " and insert "9".

Moved by:    Sutton (Dan)
Second by:    Volesky
Action:    Prevailed by voice vote.

 MOTION:     DO PASS SB 165 AS AMENDED

Moved by:    Volesky
Second by:    McCracken
Action:    Prevailed by roll call vote.(7-0-0-0)

Voting Yes:    Bogue, McCracken, Sutton (Dan), Volesky, Whiting, Daugaard, Munson

          SB 174: provide for a refund of certain taxes attributed to the construction of a new or expanded wind energy generation facilities.

Presented By:    Senator Symens, Sponsosr (Handout #1 and #2)
Proponents:    Jim Burg, PUC Chairman (Handouts #3-4-5-6-7)
Opponents:    Scott Peterson, Dept of Revenue

MOTION:     DO PASS SB 174

Moved by:    Volesky
Second by:    Sutton (Dan)
Action:    Prevailed by roll call vote.(5-2-0-0)

Voting Yes:    McCracken, Sutton (Dan), Volesky, Whiting, Daugaard

Voting No:    Bogue, Munson

         SB 235: allow certain interstate shipments of wine.

Presented By:    Representative Derby, Sponsor (Handout #8)
Proponents:    Sandi Vojta, Prairie Berry Winery, Rapid City, SD
        Jeff Fox, Wine Industries, Sioux Falls, SD
Opponents:    Jeremiah Murphy, So Dak Distributing
        Jim Hood, SD Retailers
        Jack McGee, Dept of Revenue

MOTION:     AMEND SB 235

235oa
     On page 2, line 1 of the printed bill, after " intoxicated. " insert "No common carrier or its agent

or employee may deliver any wine to anyone other than a person who has a permit as provided by section 5 of this Act.".


     On page 2 , line 12, after " costs. " insert "No registration fee pursuant to chapter 39-13 may be imposed on any direct shipment made pursuant to this Act.".

Moved by:    McCracken
Second by:    Whiting
Action:    Prevailed by voice vote.

 MOTION:     DO PASS SB 235 AS AMENDED

Moved by:    Whiting
Second by:    McCracken
Action:    Failed by roll call vote.(3-4-0-0)

Voting Yes:    McCracken, Sutton (Dan), Whiting

Voting No:    Bogue, Volesky, Daugaard, Munson

 MOTION:     DEFER SB 235 TO THE 41ST LEGISLATIVE DAY

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

Voting Yes:    Bogue, McCracken, Volesky, Daugaard, Munson

Voting No:    Sutton (Dan), Whiting

 MOTION:     ADJOURN

Moved by:    Daugaard
Second by:    Whiting
Action:    Prevailed by voice vote.

Margaret Nickels

____________________________

Committee Secretary
David R. Munson, Chair

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