76th Legislative Session _ 2001

Committee: House State Affairs
Monday, February 26, 2001

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Brown (Richard)
P    Duenwald
P    Duniphan
P    Eccarius
P    Glenski
P    Hanson (Gary)
P    Jaspers
P    Juhnke
P    Michels
P    Olson (Mel)
P    Smidt
P    Napoli, Vice-Chair
P    Peterson (Bill), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Bill Peterson.

MOTION:     TO APPROVE THE MINUTES OF SATURDAY, FEBRUARY 24, 2001

Moved by:    Duniphan
Second by:    Olson (Mel)
Action:    Prevailed by voice vote.

         SB 111: allow for binding arbitration for school districts and employees under certain circumstances.

Presented By:    Senator Kermit Staggers, prime sponsor
Proponents:    Bob Stevens, lobbyist, South Dakota Education Association (handout 1)
        Representative Clarence Kooistra, sponsor


        Paul Aylward, lobbyist, AFSCME
Opponents:    Gene Enck, lobbyist, Associated School Boards of SD
        Christie Johnson, lobbyist, School Administrators of SD
        Ray Christensen, Secretary, DECA

MOTION:     DO PASS SB 111

Moved by:    Olson (Mel)
Second by:    Hanson (Gary)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 111 TO THE 41ST LEGISLATIVE DAY

Moved by:    Napoli
Second by:    Duenwald
Action:    Prevailed by roll call vote.(9-4-0-0)

Voting Yes:    Duenwald, Duniphan, Eccarius, Jaspers, Juhnke, Michels, Smidt, Napoli, Peterson (Bill)

Voting No:    Brown (Richard), Glenski, Hanson (Gary), Olson (Mel)

         SB 239: establish the regents scholarship program and provide for its funding.

Presented By:    Tad Perry, Executive Director, Board of Regents (handout 2)
Proponents:    Elaine Roberts, President, SDEA
        Bob Duffett, Dakota Wesleyan University
        Mark Hurtubise, Mt. Marty College, Yankton
        Bruce Halverson, Augustana College, Sioux Falls
        Jim Abbott, President, University of SD, Vermillion
        Dr. Gerald Tunheim, Dakota State University, Madison
        Dick Gowen, SD School of Mines & Technology, Rapid City
        John Hilpert, President, Northern State University, Aberdeen
        Megan Juhnke, senior student, Vivian, self
        Tess Halverson, senior student, Kennebec, self
        Jeremiah Murphy, lobbyist, Private College Foundation, Sioux Falls
        David Owen, lobbyist, SD Chamber of Commerce, Pierre
Opponents:    Representative Clarence Kooistra, self

MOTION:     AMEND SB 239

239fb
     On page 2, line 2 of the Senate State Affairs Committee engrossed bill, delete everything after " (4) " .

     On page 2 , delete lines 3 and 4 .

     On page 2 , line 5, delete " (5) " .

     On page 2 , between lines 8 and 9, insert:

"      Section 3. If it is determined that a student cannot complete the course requirements as provided in Board of Regents policy 2:3.2.F as in effect on January 25, 2001, due to the unavailability of the courses of study at the student's high school, the student may be admitted into the regents scholarship program.".


     On page 3 , after line 22, insert:

"      Section 7. Section 3 of this Act is repealed on July 1, 2003.".


Moved by:    Smidt
Second by:    Duniphan
Action:    Prevailed by voice vote.

MOTION:     CALL THE QUESTION

Moved by:    Michels
Second by:    Duniphan
Action:    Prevailed by voice vote.

MOTION:     AMEND SB 239

239fc
     On page 1, line 10 of the Senate State Affairs Committee engrossed bill, delete " universities, colleges, or technical schools " and insert "public universities or technical institutes".

     On page 1 , line 15, delete everything after " the " and insert "six Board of Regents universities or four technical institutes;".

     On page 2 , delete line 1 .

Moved by:    Smidt


Second by:    Juhnke
Action:    Failed by roll call vote.(6-7-0-0)

Voting Yes:    Duenwald, Duniphan, Eccarius, Juhnke, Smidt, Peterson (Bill)

Voting No:    Brown (Richard), Glenski, Hanson (Gary), Jaspers, Michels, Olson (Mel), Napoli

Vice Chair Napoli assumed the chair.

MOTION:     AMEND SB 239

239oc
     On page 3, after line 22 of the Senate State Affairs Committee engrossed bill, insert:

"

     Section 8. There is hereby appropriated from the general fund the sum of one million seven hundred sixty-four thousand dollars ($1,764,000), or so much thereof as may be necessary, to the Board of Regents to provide funding for the regents scholarship program.

     Section 9. The executive director of the Board of Regents shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

     Section 10. Any amounts appropriated in this Act not lawfully expended or obligated by June 30, 2002, shall revert in accordance with §  4-8-21.".

Moved by:    Peterson (Bill)
Second by:    Brown (Richard)
Action:    Failed by roll call vote.(5-8-0-0)

Voting Yes:    Duniphan, Jaspers, Juhnke, Smidt, Peterson (Bill)

Voting No:    Brown (Richard), Duenwald, Eccarius, Glenski, Hanson (Gary), Michels, Olson (Mel), Napoli

Chair Peterson assumed the chair.

MOTION:     DO PASS SB 239 AS AMENDED

Moved by:    Brown (Richard)
Second by:    Jaspers
Action:    Prevailed by roll call vote.(13-0-0-0)



Voting Yes:    Brown (Richard), Duenwald, Duniphan, Eccarius, Glenski, Hanson (Gary), Jaspers, Juhnke, Michels, Olson (Mel), Smidt, Napoli, Peterson (Bill)

The meeting was recessed at 12:25 PM.

The meeting was reconvened at 4:55 PM.

         SB 85: prohibit certain persons from receiving a permit to carry a concealed pistol.

Presented By:    Representative Chris Madsen, sponsor (handout 3)
Proponents:    Dick Tieszen, lobbyist, SD Sheriffs Association, Pierre
Opponents:    Nancy Errea, self, Black Hawk
        Ray Lautenschlager, lobbyist, Gun Owners of SD, Rapid City

MOTION:     DEFER SB 85 TO THE 41ST LEGISLATIVE DAY

Moved by:    Olson (Mel)
Second by:    Duenwald
Action:    Prevailed by roll call vote.(9-4-0-0)

Voting Yes:    Duenwald, Eccarius, Hanson (Gary), Jaspers, Juhnke, Michels, Olson (Mel), Napoli, Peterson (Bill)

Voting No:    Brown (Richard), Duniphan, Glenski, Smidt

         SB 252: provide for the establishment of the School and Public Lands Paleontology Advisory Council and to prescribe its duties.

Presented By:    Curt Johnson, Commissioner of School and Public Lands
Proponents:    Gale Bishop, SD School of Mines and Technology, Rapid City
Opponents:    Ray Christensen, Secretary, Department of Education and Cultural Affairs

MOTION:     AMEND SB 252

252ra
     On page 1, line 4 of the Senate State Affairs Committee engrossed bill, delete " may " and insert "shall".

     On page 1 , line 5, after " Council " insert "and the Office of State Paleontologist housed at the Museum of Geology at South Dakota School of Mines and Technology".

     On page 1 , line 6, after " lands " insert "and to assess the paleontologic resources of state lands

prior to the permitting process to be administered by a State Paleontologist, who shall be a qualified paleontologist holding a terminal degree (PhD), to be housed at the Museum of Geology jointly funded with the Office of School and Public Lands,".


     On page 1 , line 7, delete " suitable " and insert "state".

     On page 1 , line 8, delete " citizens " and insert "employees of state agencies".

     On page 1 , line 9, after " paleontology, " insert "three of whom shall be professional paleontologists, geologists, or biologists holding a terminal degree (PhD) in paleontology, geology, or biology,".

     On page 2 , line 6, after " specimens " insert " , the conservation and curation of the specimens in a public South Dakota museum, ".

     On page 2 , between lines 13 and 14, insert:

     " No state repository may be charged a fee for an exploration or excavation permit. ".

     On page 2 , line 20, overstrike " collection " and insert " specimens ".

     On page 2 , line 23, after " commissioner " insert " and the state paleontologist ".

     On page 2 , line 23, overstrike " a qualified paleontologist " .

     On page 2 , line 23, delete " and " .

Moved by:    Napoli
Second by:    Olson (Mel)
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 252 AS AMENDED

Moved by:    Brown (Richard)
Second by:    Olson (Mel)
Action:    Failed by roll call vote.(4-9-0-0)

Voting Yes:    Brown (Richard), Glenski, Hanson (Gary), Olson (Mel)

Voting No:    Duenwald, Duniphan, Eccarius, Jaspers, Juhnke, Michels, Smidt, Napoli, Peterson (Bill)



MOTION:     AMEND SB 252

252oc
     On the Senate State Affairs Committee engrossed bill, delete everything after the enacting clause and insert:

"      Section 1. That chapter 13-55 be amended by adding thereto a NEW SECTION to read as follows:

     There is established the regents scholarship program to be administered by the Board of Regents. The Board of Regents may establish such policies and procedures as it deems necessary to carry out the purposes of this program. The purpose of the program is to allow South Dakota's most academically accomplished high school graduates to receive an affordable education at one of South Dakota's six Board of Regents universities or four state technical schools.

     Section 2. In order to be eligible for a regents scholarship award, a student shall:

             (1)    Be a resident of South Dakota at the time of graduation from high school;

             (2)    Meet the high school graduation requirements as provided in Board of Regents Policy 2:3.2.F as in effect on January 25, 2001;

             (3)    Attend one of the six accredited Board of Regents universities or four accredited state technical institutes located in South Dakota;

             (4)    Enter into the program within one year of graduation from high school.

     A student is eligible to participate in the regents scholarship program for the equivalent of four academic years or until the attainment of a baccalaureate or technical degree, whichever comes first.

     Section 3. If it is determined that a student cannot complete the course requirements as provided in Board of Regents policy 2:3.2.F as in effect on January 25, 2001, due to the unavailability of the courses of study at the student's high school, the student may be admitted into the regents scholarship program.

     Section 4. Scholarship payments shall be made on a semester-by-semester basis. The amount of award shall be as follows:

             (1)    One thousand five hundred dollars for the first year of attendance;

             (2)    Two thousand dollars for the second year of attendance;

             (3)    Two thousand five hundred dollars for the third year of attendance;

             (4)    Three thousand dollars for the fourth year of attendance.

     The total amount of the scholarship may not exceed nine thousand dollars.

     Section 5. In order to maintain eligibility, a student shall:

             (1)    Maintain a cumulative 3.0 grade point average on a 4.0 scale. Cumulative grade point average shall be calculated after the second semester and every semester thereafter. The student shall complete consecutive spring and fall terms in order to remain eligible for continuation of the scholarship program from term to term. Once a student's cumulative grade point average falls below 3.0 on a 4.0 scale, the student permanently loses eligibility for continuation in the scholarship program;

             (2)    Complete fifteen credit hours of instruction per semester. The student must enroll in and complete at least fifteen credit hours of instruction in each consecutive spring and fall term. If the executive director of the Board of Regents determines that a student's failure to enroll or to maintain continued enrollment occurred as a direct result of legitimate factors outside the student's control, or has resulted from the student's participation in an activity that in the executive director's judgment provides knowledge or experience that will enhance the student's academic pursuits, the executive director may extend the student's eligibility to participate in the program for up to two additional years, if the student does not enroll in a noneligible institution;

             (3)    Sit for and pass the college proficiency exam as required by Board of Regents Policy 2.28 as in effect on October 6, 2000, at the end of the sophomore year. If the student fails to pass the proficiency exam the first time, eligibility is forfeited for continuation in the scholarship program;

             (4)    All eligible students shall certify not to use tobacco products for the entire term in which they will be participating in the regents scholarship. Failure to comply shall result in loss of eligibility.

     Section 6. That § 10-50B-11 be amended to read as follows:

     10-50B-11.   The people's trust fund is established in the state treasury. Any money received from the Master Settlement Agreement signed on November 23, 1998, by attorneys general from several states and various tobacco companies shall be deposited in the people's trust fund. The principal in the trust fund may not be expended , except for dollars appropriated by the Legislature for the regents scholarship program . The fund shall be invested according to § §  4-5-23 and 4-5-26. Interest earned on money in the fund shall be deposited in the people's interest fund created in §  10-50B-12.



     Section 7. Section 3 of this Act is repealed on July 1, 2003."

Moved by:    Smidt
Second by:    Juhnke
Action:    Failed by roll call vote.(6-7-0-0)

Voting Yes:    Duniphan, Eccarius, Jaspers, Juhnke, Smidt, Peterson (Bill)

Voting No:    Brown (Richard), Duenwald, Glenski, Hanson (Gary), Michels, Olson (Mel), Napoli

MOTION:     TO TABLE SB 252

Moved by:    Olson (Mel)
Second by:    Brown (Richard)
Action:    Prevailed by roll call vote.(12-1-0-0)

Voting Yes:    Brown (Richard), Duenwald, Duniphan, Eccarius, Hanson (Gary), Jaspers, Juhnke, Michels, Olson (Mel), Smidt, Napoli, Peterson (Bill)

Voting No:    Glenski

         SB 192: require certain prescription drug manufacturers and labelers to enter into rebate agreements, to establish a discount prescription drug program for certain individuals, to require retail pharmacies to offer certain discounts, and to prescribe penalties and remedies.

Presented By:    Representative Mel Olson, sponsor

MOTION:     AMEND SB 192

192fa
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 35-4-4 be amended to read as follows:

     35-4-4.   No person, corporation, or business entity may be the holder of or have an interest in more than three retail licenses issued under subdivision 35-4-2(3), (4), (6), or (13). However, a person, corporation, or business entity may hold or have an interest in three additional retail licenses issued under subdivision 35-4-2(4) if the licensee derives more than fifty percent of the licensee's gross receipts from the sale of food at the location where the license is held. In addition, any person, corporation, or business entity may hold or have an interest in additional retail licenses issued under

subdivision 35-4-2(3) in a municipality with a population of over ten thousand if the licensee derives less than fifty percent of the licensee's gross receipts from the sale of alcoholic beverages at the location where the license is held. Any such new licensee under subdivision 35-4-2(3) shall sell its alcoholic beverages, other than malt beverages, in an area in which persons under the age of twenty- one are not allowed and which is separated by a physical barrier from the rest of the establishment and is serviced by a separate cash register. For the purposes of this section, a physical barrier includes a wall, fence, rope, railing, or other physical feature erected for the sole purpose of restricting the free flow of foot traffic and access to a certain area of a premise. For purposes of this section, location means one contiguous piece of real estate on which sales are generated by the licensee. "


Moved by:    Jaspers
Second by:    Brown (Richard)
Action:    Failed by show of hands (6-6).

MOTION:     TO TABLE SB 192

Moved by:    Olson (Mel)
Second by:    Glenski
Action:    Prevailed by roll call vote.(10-3-0-0)

Voting Yes:    Brown (Richard), Duenwald, Duniphan, Eccarius, Jaspers, Juhnke, Michels, Smidt, Napoli, Peterson (Bill)

Voting No:    Glenski, Hanson (Gary), Olson (Mel)

         SB 242: affect the sale and pricing of prescription drugs in the State of South Dakota.
Presented By:    Senator Jim Hutmacher
        Senator Barbara Everist
Proponents:    Senator Dick Hainje, self
        Representative Frank Kloucek, self
Opponents:    Christopher Ward, lobbyist, PhRMA, Troy, Canada

MOTION:     AMEND SB 242

242ji
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. Any manufacturer of pharmaceutical drugs sold in the state shall file with the Board of Pharmacy the manufacturer's definition and method of determining average wholesale price

(AWP) for pharmaceutical drugs sold for consumption or use in this state. The manufacturer shall report the information as determined by the secretary of health in rules promulgated pursuant to chapter 1-26.

     Section 2. Any manufacturer of pharmaceutical drugs sold in this state shall offer such drugs to wholesale purchasers licensed to do business in this state at prices equivalent to those prices charged by the manufacturer for equivalent drugs in Canada. This section does not apply to any drug that is not actually sold in Canada.

     Section 3. Notwithstanding §  36-11A-5, the state and its citizens and businesses may purchase or receive any prescription drug from Canada or any other foreign source pursuant to the laws of the United States or any rules, regulations, standards, or policies as prescribed by the United States Secretary of Health and Human Services or the Food and Drug Administration."

Moved by:    Eccarius
Second by:    Brown (Richard)
Action:    Prevailed by voice vote.

MOTION:     AMEND SB 242

242oa
     In the previously adopted amendment (242ji), after "Canada" in the last sentence of Section 2, insert: "and to any equivalent drug that is sold in the state at a lower price. The secretary of health shall promulgate rules pursuant to chapter 1-26 to establish procedures to be used in the determination of equivalent drugs and equivalent prices".

Moved by:    Michels
Second by:    Duniphan
Action:    Prevailed by voice vote.

MOTION:     DO PASS SB 242 AS AMENDED

Moved by:    Michels
Second by:    Duniphan
Action:    Prevailed by roll call vote.(13-0-0-0)

Voting Yes:    Brown (Richard), Duenwald, Duniphan, Eccarius, Glenski, Hanson (Gary), Jaspers, Juhnke, Michels, Olson (Mel), Smidt, Napoli, Peterson (Bill)

         SB 229: provide direction to the South Dakota Investment Council in the investment

of the net proceeds derived from the sale of state cement enterprises and to declare an emergency.

Presented By:    Representative Alice McCoy, sponsor (handout 4)
Proponents:    Curt Everson, Bureau of Finance and Management

MOTION:     DO PASS SB 229

Moved by:    Duniphan
Second by:    Napoli
Action:    Prevailed by roll call vote.(13-0-0-0)

Voting Yes:    Brown (Richard), Duenwald, Duniphan, Eccarius, Glenski, Hanson (Gary), Jaspers, Juhnke, Michels, Olson (Mel), Smidt, Napoli, Peterson (Bill)

MOTION:     PLACE SB 229 ON CONSENT

Moved by:    Napoli
Second by:    Brown (Richard)
Action:    Prevailed by voice vote.

MOTION:     ADJOURN

Moved by:    Duniphan
Second by:    Brown (Richard)
Action:    Prevailed by voice vote.

Clara Shelbourn

____________________________

Committee Secretary
Bill Peterson, Chair


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