JOURNAL OF THE SENATE

SEVENTY-SIXTH  SESSION




THIRTY-EIGHTH DAY




STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Friday, March 2, 2001

     The Senate convened at 8:30 a.m., pursuant to adjournment, the President presiding.

     The prayer was offered by the Chaplain, Reverend Gale Shafer, followed by the Pledge of Allegiance led by Senate page Nisa Schwiesow.

     Roll Call: All members present except Sen. Hagen who was excused.

APPROVAL OF THE JOURNAL


MADAM PRESIDENT:

     The Committee on Legislative Procedure respectfully reports that the Secretary of the Senate has had under consideration the Senate Journal of the thirty-seventh day.

     All errors, typographical or otherwise, are duly marked in the temporary journal for correction.

     And we hereby move the adoption of the report.

Respectfully submitted,
Arnold M. Brown, Chair

     Which motion prevailed and the report was adopted.
MOTIONS AND RESOLUTIONS



        SENATE PAGE RESOLUTION 4 Introduced by: Senators Albers, Apa, Bogue, Brosz, Brown (Arnold), Daugaard, de Hueck, Dennert, Diedrich (Larry), Diedtrich (Elmer), Drake, Duxbury, Everist, Greenfield, Hagen, Hainje, Ham, Hutmacher, Kleven, Koetzle, Koskan, Madden, McCracken, McIntyre, Moore, Munson, Olson (Ed), Putnam, Reedy, Staggers, Sutton (Dan), Symens, Vitter, Volesky, and Whiting

            A RESOLUTION, Expressing the appreciation and gratitude of the Senate of the Seventy-sixth Legislature of the State of South Dakota to Erin Brown, Kayla Flynn, Laura Geraets, Steven Hofer, Sandra Livermont, Tyler Lohmiller, Kristen Osterberg, Sarah Rost, and Nisa Schwiesow.

        WHEREAS, the above named served loyally as pages for the Senate of the Seventy-sixth Legislative Session; and

        WHEREAS, the members of the Seventy-sixth Senate express their most sincere appreciation to these young people for their service to the state; and

        WHEREAS, the members extend to these young people their wishes for every success in life:

        NOW, THEREFORE, BE IT RESOLVED, by the Senate of the Seventy-sixth Legislature of the State of South Dakota, that a personal copy of this resolution be duly certified and furnished to each page on this last day of service.

     Sen. Hainje moved that Senate Page Resolution 4 be adopted.

     The question being on Sen. Hainje's motion that Senate Page Resolution 4 be adopted.

     And the roll being called:

     Yeas 25, Nays 0, Excused 10, Absent 0

     Yeas:
Albers; Bogue; Brosz; Daugaard; Dennert; Diedrich (Larry); Diedtrich (Elmer); Duxbury; Greenfield; Hainje; Hutmacher; Kleven; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Putnam; Reedy; Staggers; Sutton (Dan); Symens; Vitter

     Excused:
Apa; Brown (Arnold); de Hueck; Drake; Everist; Hagen; Ham; Koetzle; Volesky; Whiting

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried.


     The President appointed Sens. Putnam, Greenfield, and Koetzle as a committee of three on the part of the Senate to meet with a like committee on the part of the House to adjust the differences between the two houses on HB 1142.

REPORTS OF STANDING COMMITTEES


MADAM PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 209 and 225 and finds the same correctly enrolled.

Respectfully submitted,
Arnold M. Brown, Chair

     Sen. Hainje moved that the Senate do now recess until 11:00 a.m., which motion prevailed and at 9:05 a.m., the Senate recessed.

RECESS


     The Senate reconvened at 11:00 a.m., the President presiding.

    The President announced the following change on the Senate Conference Committee on SB 226:

    The Senate committee will now be Sens. Everist, Arnold Brown, and Symens.

COMMUNICATIONS AND PETITIONS


March 1, 2001

The Honorable Carole Hillard
President of the Senate
State Capitol
Pierre, SD 57501-5070

Dear President Hillard and Members of the Senate:

I herewith return Senate Bill 44 with the following recommendations as to STYLE and FORM.

Senate Bill 44 is, An Act to provide reciprocity for the licensing of insurance producers.


Section 23 of the bill on page 12, line 8 contains a reference to "section 18". This reference should be to "section 19".

I respectfully request you concur with my recommendation as to style and form.

Respectfully submitted,
William J. Janklow
Governor

MOTIONS AND RESOLUTIONS


     Sen. Drake moved that the Senate do concur in House amendments to SB 14.

     Sen. Drake moved as a substitute motion that the Senate do not concur in House amendments to SB 14 and that a committee of three on the part of the Senate be appointed to meet with a like committee on the part of the House to adjust the differences between the two houses.

    Sen. Hutmacher requested a roll call vote.

    Which request was supported.

    The question being on Sen. Drake's substitute motion that the Senate do not concur in House amendments to SB 14 and that a committee be appointed.

     And the roll being called:

     Yeas 13, Nays 21, Excused 1, Absent 0

     Yeas:
de Hueck; Dennert; Duxbury; Hutmacher; Koetzle; McIntyre; Moore; Munson; Olson (Ed); Reedy; Sutton (Dan); Symens; Volesky

     Nays:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; Diedrich (Larry); Diedtrich (Elmer); Drake; Everist; Greenfield; Hainje; Ham; Kleven; Koskan; Madden; McCracken; Putnam; Staggers; Vitter; Whiting

     Excused:
Hagen

     So the motion not having received an affirmative vote of a majority of the members present, the President declared the motion lost.

     The question now being on Sen. Drake's motion that the Senate do concur in House amendments to SB 14.

     And the roll being called:



     Yeas 27, Nays 7, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Hainje; Ham; Hutmacher; Kleven; Koskan; Madden; McCracken; McIntyre; Munson; Putnam; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Nays:
de Hueck; Greenfield; Koetzle; Moore; Olson (Ed); Reedy; Staggers

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the amendments were concurred in.

COMMUNICATIONS AND PETITIONS


March 1, 2001

Madam President and Members of the Senate:

     I have the honor to inform you that I have approved SB 202, and the same has been deposited in the office of the Secretary of State.

Respectfully submitted,
William J. Janklow
Governor

     Sen. Everist moved that the Senate do now recess until 1:30 p.m., which motion prevailed and at 11:30 a.m., the Senate recessed.

RECESS


     The Senate reconvened at 1:30 p.m., the President presiding.

REPORTS OF STANDING COMMITTEES


MADAM PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 14 and finds the same correctly enrolled.

Respectfully submitted,
Arnold M. Brown, Chair
CONSIDERATION OF EXECUTIVE VETOES AND RECOMMENDATIONS


     The Senate proceeded to the consideration of the recommendation of the Governor as to change of style and form of SB 44 as found on page 773 of the Senate Journal, as provided in Article IV, Section 4, of the Constitution of the State of South Dakota.

     The question being "Shall the recommendation of the Governor as to change of style and form of SB 44 be approved?"

     And the roll being called:

     Yeas 31, Nays 0, Excused 4, Absent 0

     Yeas:
Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Dennert; Diedrich (Larry); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Hutmacher; Kleven; Koetzle; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Reedy; Staggers; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Excused:
Albers; Diedtrich (Elmer); Hagen; Putnam

     So the question having received an affirmative vote of a majority of the members-elect, the President declared the recommendation of the Governor as to change of style and form approved.

     Sen. Everist moved that the Senate do now recess until 4:30 p.m., which motion prevailed and at 1:55 p.m., the Senate recessed.

RECESS


     The Senate reconvened at 4:30 p.m., the President presiding.

REPORTS OF CONFERENCE COMMITTEES


MADAM PRESIDENT:

     The Conference Committee respectfully reports that it has considered HB 1142 and the amendments thereto made by the Senate, and the disagreement of the two houses thereon, and recommends that HB 1142 be amended as follows:

     On the Senate Appropriations Committee engrossed bill, delete everything after the enacting clause and insert:

    "Section 1. That certain programs in chapter 14 of the 2000 Session Laws be amended to read as follows:



BOARD OF REGENTS

    Northern State University

        Personal Services, delete "$6,735,806" and insert "$7,789,606

        Operating Expenses, delete "$1,002,685" and insert "$1,300,005"

Adjust all totals accordingly.

     Section 2. That certain programs in chapter 14 of the 2000 Session Laws be amended to read as follows:

DEPARTMENT OF HEALTH

    Administration, Secretary of Health

    Operating Expenses, delete "$629,145" and insert "$1,629,145".

Adjust all totals accordingly.

     Section 3. The fund source used to support the other fund expenditure authority appropriated by section 2 of this Act shall be the youth-at-risk education trust fund established in §  13-14-6.

     Section 4. Any expenditure authority and cash appropriated by this Act which are unspent at the end of fiscal year 2001 shall be carried over to fiscal year 2002.

     Section 5. This Act is effective June 22, 2001."


     On page 1, line 1 of the Senate Appropriations Committee engrossed bill, delete everything after " to " and insert "amend the General Appropriations Act for fiscal year 2001."

     On page 1 , delete line 2 .

Respectfully submitted,                         Respectfully submitted,
Mitch Richter                                    J. E. "Jim" Putnam
Clarence L. Kooistra                            Brock L. Greenfield
Kay Davis
House Committee                                Senate Committee

Also MADAM PRESIDENT:

     The Conference Committee respectfully reports that it has considered SB 98 and the amendments thereto made by the House, and the disagreement of the two houses thereon, and recommends that SB 98 be amended as follows:

     On the House Agriculture and Natural Resources Committee engrossed bill, delete everything after the enacting clause and insert:

    "Section 1. That chapter 38-22 be amended by adding thereto a NEW SECTION to read as follows:

     If the county weed and pest board is requested by an individual to perform weed and pest control operations on the individual's property and the individual fails to reimburse the county by November first in the year in which the operations are performed, the cost of the control, plus an administrative fee of fifty dollars or ten percent of the cost of control, whichever is greater, shall be charged as taxes against each tract of land on which the expenses were incurred pursuant to §  38-22-23.14.

     Section 2. That § 38-22-23.14 be amended to read as follows:

     38-22-23.14.   If the landowner fails or refuses to perform as required within the time designated, the county weed and pest board may proceed to perform the requirements. The board shall certify its expenses to the county auditor, and the auditor shall bill the landowner for the amount of the expenses , plus an administrative fee of fifty dollars or ten percent of the cost of control, whichever is greater . If the landowner has not paid the bill by November first of the calendar year in which the expenses were incurred, the amount of the bill shall be further increased by ten percent, and the adjusted amount shall be charged as taxes against each tract of land on which the expenses were incurred. The adjusted amount shall be collected as other taxes and credited to the general fund.

     Section 3. That chapter 38-22 be amended by adding thereto a NEW SECTION to read as follows:

     Any owner, occupant, or other person who maintains or exercises control or management over land who is issued a resolution by the county weed and pest board pursuant to §  38-22- 23.13 for three consecutive years and fails to perform the minimum remedial requirements for control is subject to a civil penalty of up to five hundred dollars. Any owner, occupant, or other person who maintains or exercises control or management over land on which the county weed and pest board has performed remedial requirements pursuant to §  38-22-23.14 for three consecutive years is subject to a civil penalty of up to five hundred dollars."

Respectfully submitted,                         Respectfully submitted,
Jay L. Duenwald                                John Koskan
Mike Jaspers                                    Larry Diedrich
Sam Nachtigal                                Jim Hutmacher
House Committee                                Senate Committee

MESSAGES FROM THE HOUSE


MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has failed to concur in Senate amendments to HB 1285 and has appointed Reps. Tom Hansen, Richter, and Gary

Hanson as a committee of three on the part of the House to meet with a like committee on the part of the Senate to adjust the differences between the two houses.

     The President appointed as such committee Sens. Drake, Koskan, and Dennert.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has appointed Reps. Eccarius, McCaulley, and Davis as a committee of three on the part of the House to meet with a like committee on the part of the Senate to adjust the differences between the two houses on SB 153.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has appointed Reps. Bill Peterson, Eccarius, and Mel Olson as a committee of three on the part of the House to meet with a like committee on the part of the Senate to adjust the differences between the two houses on SB 226.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has appointed Reps. Bill Peterson, McCoy, and Davis as a committee of three on the part of the House to meet with a like committee on the part of the Senate to adjust the differences between the two houses on SB 229.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has appointed Reps. Bill Peterson, Michels, and Flowers as a committee of three on the part of the House to meet with a like committee on the part of the Senate to adjust the differences between the two houses on SB 239.

Respectfully,
Karen Gerdes, Chief Clerk

MOTIONS AND RESOLUTIONS


     Sen. Everist moved that the concurrence in House amendments to SB 245 be placed to follow HB 1139 on today's calendar.

     Which motion prevailed and the concurrence in House amendments to SB 245 was so placed.



     HCR 1026:   A CONCURRENT RESOLUTION,   Urging South Dakota's United States Senators and Representative to authorize and appropriate funds to support the expansion of utility and roadway infrastructure in conjunction with the construction of Interstate Highway 90, Exit 67 and the arterial road servicing Ellsworth Air Force Base and the City of Box Elder, South Dakota.

    Was read the second time.

     Sen. Whiting moved that HCR 1026 as found on page 750 of the House Journal be concurred in.

     The question being on Sen. Whiting's motion that HCR 1026 be concurred in.

     And the roll being called:

     Yeas 34, Nays 0, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Hutmacher; Kleven; Koetzle; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Putnam; Reedy; Staggers; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and HCR 1026 was concurred in.

CONSIDERATION OF REPORTS OF CONFERENCE COMMITTEES


     Sen. Everist moved that the report of the Conference Committee on HB 1202 as found on page 748 of the Senate Journal be adopted.

     The question being on Sen. Everist's motion that the report of the Conference Committee on HB 1202 be adopted.

     And the roll being called:

     Yeas 34, Nays 0, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Hutmacher; Kleven; Koetzle; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Putnam; Reedy; Staggers; Sutton (Dan); Symens; Vitter; Volesky; Whiting


     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. Bogue moved that the report of the Conference Committee on SB 149 as found on page 761 of the Senate Journal be adopted.

     The question being on Sen. Bogue's motion that the report of the Conference Committee on SB 149 be adopted.

     And the roll being called:

     Yeas 32, Nays 2, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Kleven; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Putnam; Reedy; Staggers; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Nays:
Hutmacher; Koetzle

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. Everist moved that HB 1139 and 1258 be placed to follow SB 245 on today's calendar and that the report of the Conference Committee on SB 98 be considered immediately.

     Which motion prevailed.

     Sen. Koskan moved that the report of the Conference Committee on SB 98 as found on page 777 of the Senate Journal be adopted.

     The question being on Sen. Koskan's motion that the report of the Conference Committee on SB 98 be adopted.

     And the roll being called:

     Yeas 31, Nays 3, Excused 1, Absent 0


     Yeas:
Albers; Bogue; Brosz; Brown (Arnold); Daugaard; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Hutmacher; Kleven; Koetzle; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Putnam; Reedy; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Nays:
Apa; de Hueck; Staggers

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.

     Sen. Everist moved that the Senate do now recess until 7:30 p.m., which motion prevailed and at 5:27 p.m., the Senate recessed.

RECESS


     The Senate reconvened at 7:30 p.m., the President presiding.

REPORTS OF CONFERENCE COMMITTEES


MADAM PRESIDENT:

     The Conference Committee respectfully reports that it has considered HB 1285 and the amendments thereto made by the Senate, and the disagreement of the two houses thereon, and recommends that the House do concur with the Senate amendments.

Respectfully submitted,                         Respectfully submitted,
Tom Hansen                                    John Koskan
Mitch Richter                                    Bob Drake
                                            H. Paul Dennert
House Committee                                Senate Committee

MESSAGES FROM THE HOUSE


MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has failed to concur in Senate amendments to HB 1227 and has appointed Reps. Teupel, Richter, and Elliott as a committee of three on the part of the House to meet with a like committee on the part of the Senate to adjust the differences between the two houses.


     The President appointed as such committee Sens. Drake, Staggers, and Hutmacher.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has adopted the reports of the Conference Committees on HB 1142 and SB 149.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has concurred in Senate amendments to HB 1279 and 1294.

Respectfully,
Karen Gerdes, Chief Clerk

CONSIDERATION OF REPORTS OF CONFERENCE COMMITTEES


     Sen. Putnam moved that the report of the Conference Committee on HB 1142 as found on page 776 of the Senate Journal be adopted.

     The question being on Sen. Putnam's motion that the report of the Conference Committee on HB 1142 be adopted.

     And the roll being called:

     Yeas 26, Nays 8, Excused 1, Absent 0

     Yeas:
Albers; Bogue; Brosz; Brown (Arnold); Daugaard; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Hutmacher; Kleven; McCracken; McIntyre; Moore; Munson; Putnam; Staggers; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Nays:
Apa; de Hueck; Dennert; Koetzle; Koskan; Madden; Olson (Ed); Reedy

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and the report was adopted.


MESSAGES FROM THE HOUSE


MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has failed to adopt the report of the Conference Committee on HB 1285 and no new committee was appointed.

Also MADAM PRESIDENT:

    I have the honor to inform your honorable body that the House has adopted the report of the Conference Committee on SB 98.

Respectfully,
Karen Gerdes, Chief Clerk

     Sen. Everist moved that the concurrence in House amendments to SB 245 be placed to follow HB 1139 on today's calendar.

     Which motion prevailed.

SECOND READING OF HOUSE BILLS AND JOINT RESOLUTIONS


     HB 1258:   FOR AN ACT ENTITLED, An Act to   revise the distribution of state aid to education.

     Was read the second time.

1258dw

     Sen. Everist moved that HB 1258 be further amended as follows:

     On the Senate Education Committee engrossed bill, delete everything after the enacting clause and insert:

    "Section 1. That § 13-13-10.1 be amended to read as follows:

     13-13-10.1.   Terms used in this chapter mean:

             (1)      "Average daily membership," the average number of resident and nonresident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year, minus average number of pupils for whom the district receives tuition, except pupils described in subdivision (1A) and pupils for whom tuition is being paid pursuant to §   13-28-42 and plus the average number of pupils for whom the district pays tuition;

             (1A)      Nonresident students who are in the care and custody of the Department of Social Services, the Unified Judicial System, the Department of Corrections, or other state agencies and are attending a public school may be included in the average daily membership of the receiving district when enrolled in the receiving district. When counting a student who meets these criteria in its general enrollment average daily membership, the receiving district may begin the enrollment on the first day of attendance. The district of residence prior to the custodial transfer may not include students who meet these criteria in its general enrollment average daily membership after the student ceases to attend school in the resident district;

             (2)      "Adjusted average daily membership," calculated as follows:

             (a)      For districts with an average daily membership of two hundred or less, multiply 1.2 times the average daily membership;
             (b)      For districts with an average daily membership of less than six hundred, but greater than two hundred, raise the average daily membership to the 0.8293 power and multiply the result times 2.98;
             (c)      For districts with an average daily membership of six hundred or more, multiply 1.0 times their average daily membership;

             (3)      "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;

             (3A)    "Enrollment adjustment," is one-half of the negative of the annual percent change in the statewide general enrollment average daily membership for the year before the year immediately preceding the year of adjustment;

             (4)      "Per student allocation," for the period January 1, 1997, to June 30, 1997, inclusive, is $1,675. For school fiscal year 1998, beginning on July 1, 1997, the per student allocation shall be $3,350 increased by the index factor. Each school fiscal year thereafter, the per student allocation shall be the previous fiscal year's per student allocation increased by the index factor , plus the enrollment adjustment ;

             (5)      "Local need," the per student allocation multiplied by the adjusted average daily membership;

             (6)      "Local effort," the amount of ad valorem taxes generated in a school fiscal year by applying the levies established pursuant to §   10-12-42 ;

             (7)    "General fund balance," the unreserved fund balance of the general fund, less general fund exclusions plus, beginning with transfers made in fiscal year 2001, any transfers out of the general fund for the previous school fiscal year;

             (8)    "General fund balance percentage," is a school district's general fund balance divided by the school district's total general fund expenditures for the previous school fiscal year, the quotient expressed as a percent;

             (9)    "General fund base percentage," is the lesser of the general fund balance percentage as of June 30, 2000, or the general fund balance percentage of the previous fiscal year. However, the general fund base percentage can never increase and can never be less than twenty percent;

             (10)    "Allowable general fund balance," the fund base percentage multiplied by the district's general fund expenditures in the previous school fiscal year;

             (11)    "Imputed interest rate," the average prime rate for the preceding fiscal year minus 2.5 percentage points;

             (12)    "General fund exclusions," revenue a school district has received from the imposition of the excess tax levy pursuant to §  10-12-43; revenue a school district has received from gifts, contributions, grants, or donations; revenue a school district has received under the provisions of House Bill 1294 as previously enacted by the Seventy-sixth Legislative Assembly; and any revenue in the general fund set aside for a noninsurable judgment .

     Section 2. The enrollment adjustment shall apply only to the distribution of state aid to education in fiscal year 2002.

     Section 3. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

    
     A school district's state aid for general education as calculated pursuant to §  13-13-73 shall be reduced by the following calculation:

             (1)    Subtract the allowable general fund balance from the general fund balance. If the result is less than zero, (1) equals zero;
             (2)    Determine the lower of the general fund base percentage or the general fund balance percentage;
             (3)    Subtract twenty percent (0.2) from the result of (2). If the result is less than zero, (3) equals zero;
             (4)    Multiply the result of (3) by the district's general fund expenditures in the previous school fiscal year;
             (5)    Multiply the result of (4) by the imputed interest rate;
             (6)    Add the result of (1) and the result of (5).

     Section 4. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     The secretary of education and cultural affairs shall determine the reduction in state aid to education pursuant to section 3 of this Act. The secretary of education and cultural affairs shall distribute the amount of money so determined to school districts that received state aid pursuant to chapter 13-13 on a pro rata basis according to the district's average daily membership compared to the total average daily membership of all districts eligible for this distribution.
    
     Section 5. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     If two or more school districts consolidate, the general fund base percentage for the newly reorganized district shall be based upon the highest general fund balance percentage as defined in subdivision 13-13-10.1(8) of the consolidating districts.

     Section 6. That § 13-16-26.2 be amended to read as follows:

     13-16-26.2.   Notwithstanding the provisions of §   13-16-26, no school district may transfer any funds, exclusive of federal funds, from the general fund to the capital outlay fund , bond redemption fund or the capital projects fund .

     Section 7. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     There is hereby created the Excess General Fund Oversight Board within the Department of Education and Cultural Affairs. The board shall consist of five members, appointed by the Governor. The Excess General Fund Oversight Board may exempt a school district from the provisions of section 3 of this Act if a school district can demonstrate to the Excess General Fund Oversight Board that its general fund balance percentage is the result of special circumstances."


     Sen. Hutmacher moved as a substitute motion that HB 1258 be further amended as follows:

     On the Senate Education Committee engrossed bill, delete everything after the enacting clause and insert:

    "Section 1. That § 13-13-10.1 be amended to read as follows:

     13-13-10.1.   Terms used in this chapter mean:

             (1)      "Average daily membership," the average number of resident and nonresident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year, minus average number of pupils for whom the district receives tuition, except pupils described in subdivision (1A) and pupils for whom tuition is being paid pursuant to §   13-28-42 and plus the average number of pupils for whom the district pays tuition;

             (1A)      Nonresident students who are in the care and custody of the Department of Social Services, the Unified Judicial System, the Department of Corrections, or other state agencies and are attending a public school may be included in the average daily membership of the receiving district when enrolled in the receiving district. When counting a student who meets these criteria in its general enrollment average daily membership, the receiving district may begin the enrollment on the first day of attendance. The district of residence prior to the custodial transfer may not include students who meet these criteria in its general enrollment average daily membership after the student ceases to attend school in the resident district;

             (2)      "Adjusted average daily membership," calculated as follows:

             (a)      For districts with an average daily membership of two hundred or less, multiply 1.2 times the average daily membership;

             (b)      For districts with an average daily membership of less than six hundred, but greater than two hundred, raise the average daily membership to the 0.8293 power and multiply the result times 2.98;

             (c)      For districts with an average daily membership of six hundred or more, multiply 1.0 times their average daily membership;

             (3)      "Index factor," is two percent plus the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less ;

             (4)      "Per student allocation," for the period January 1, 1997, to June 30, 1997, inclusive, is $1,675. For school fiscal year 1998, beginning on July 1, 1997, the per student allocation shall be $3,350 increased by the index factor. Each school fiscal year thereafter, the per student allocation shall be the previous fiscal year's per student allocation increased by the index factor;

             (5)      "Local need," the per student allocation multiplied by the adjusted average daily membership;

             (6)      "Local effort," the amount of ad valorem taxes generated in a school fiscal year by applying the levies established pursuant to §   10-12-42.

     Section 2. Any school district that receives revenue resulting from the enrollment adjustment shall use the resulting revenue to increase teachers' salaries. The Department of Education and Cultural Affairs shall certify to each school district the amount of revenue it will receive from general state aid to education resulting from the enrollment adjustment.

     Section 3. School districts shall certify to the Department of Education and Cultural Affairs that the revenue received resulting from the enrollment adjustment is used to increase teachers' salaries.

     Section 4. That § 13-37-35.1 be amended to read as follows:

     13-37-35.1.   Terms used in chapter 13-37 mean:

             (1)      "Level one disability," a mild disability;

             (2)      "Level two disability," a mental retardation or emotional disorder;

             (3)      "Level three disability," hearing impairment, deafness, visual impairment, deaf-blindness, orthopedic impairment, or traumatic brain injury;

             (4)      "Level four disability," autism;

             (5)      "Level five disability," multiple disabilities;

             (6)      "Index factor," is two percent plus the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less ;

             (7)      "Local effort," is the amount of taxes payable each year, using a levy for the special education fund of a school district of one dollar and thirty cents per thousand dollars of taxable valuation;

             (8)      "Allocation for a student with a level one disability," for the school fiscal year beginning July 1, 1999, is $3,504. For each school year thereafter, the allocation for a student with a level one disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (9)      "Allocation for a student with a level two disability," for the school fiscal year beginning July 1, 1999, is $7,914. For each school year thereafter, the allocation for a student with a level two disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (10)      "Allocation for a student with a level three disability," for the school fiscal year beginning July 1, 1999, is $10,116. For each school year thereafter, the allocation for a student with a level three disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (11)      "Allocation for a student with a level four disability," for the school fiscal year beginning July 1, 1999, is $14,705. For each school year thereafter, the allocation for a student with a level four disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (12)      "Allocation for a student with a level five disability," for the school fiscal year beginning July 1, 1999, is $15,808. For each school year thereafter, the allocation for a student with a level five disability shall be the previous fiscal year's allocation for such child increased by the lesser of the index factor or three percent ;

             (13)      "Child count," is the number of students in need of special education or special education and related services according to criteria set forth in rules promulgated pursuant to § §   13-37-1.1 and 13-37-46 submitted to the Department of Education and Cultural Affairs in accordance with rules promulgated pursuant to §   13-37-1.1;

             (14)      "Average daily membership," the average number of kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year plus the average number of pupils for whom the district pays tuition;

             (15)      "Nonpublic school," a sectarian organization or entity which is accredited by the secretary of education and cultural affairs for the purpose of instructing children of

compulsory school age. This definition excludes any school that receives a majority of its revenues from public funds;

             (16)      "Nonpublic average daily membership," the average number of children under age sixteen who are approved for alternative instruction pursuant to §   13-27-2 during the previous school year plus:

             (a)      For nonpublic schools located within the boundaries of a public school district with an average daily membership of six hundred or more during the previous school year, the average number of kindergarten through twelfth grade pupils enrolled during the previous regular school year in all nonpublic schools located within the boundaries of the public school district;

             (b)      For nonpublic schools located within the boundaries of a public school district with an average daily membership of less than six hundred during the previous school year, the average number of resident kindergarten through twelfth grade pupils enrolled during the previous school year in all nonpublic schools located within the State of South Dakota;

             (17)      "Special education average daily membership," average daily membership plus nonpublic average daily membership;

             (18)      "Local need," an amount to be determined as follows:

             (a)      Multiply the special education average daily membership by 0.089 and multiply the result by the allocation for a student with a level one disability;

             (b)      Multiply the number of students having a level two disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level two disability;

             (c)      Multiply the number of students having a level three disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level three disability;

             (d)      Multiply the number of students having a level four disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level four disability;

             (e)      Multiply the number of students having a level five disability as reported on the child count for the previous school fiscal year by the allocation for a student with a level five disability;

             (f)      Sum the results of (a) through (e);

             (19)      "Effort factor," the school district's special education tax levy in dollars per thousand divided by $1.30. The maximum effort factor is 1.0. "

    Sen. Bogue moved the previous question.



    Which motion prevailed.

    Sen. Koetzle requested a roll call vote.

    Which request was supported.

     The question being on Sen. Hutmacher's substitute motion that HB 1258 be further amended.

     And the roll being called:

     Yeas 13, Nays 21, Excused 1, Absent 0

     Yeas:
de Hueck; Dennert; Duxbury; Hutmacher; Koetzle; McIntyre; Moore; Munson; Olson (Ed); Reedy; Sutton (Dan); Symens; Volesky

     Nays:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; Diedrich (Larry); Diedtrich (Elmer); Drake; Everist; Greenfield; Hainje; Ham; Kleven; Koskan; Madden; McCracken; Putnam; Staggers; Vitter; Whiting

     Excused:
Hagen

     So the motion not having received an affirmative vote of a majority of the members present, the President declared the motion lost.

1258xa

     Sen. Brosz moved that Sen. Everist's pending amendment to HB 1258 be amended as follows:

    On pending amendment (1258dw), Section 1, subdivision (9), line 1, delete "lesser of the" and on line 2, after "2000" delete ", or the general fund balance percentage of the previous fiscal year".

     Which motion prevailed.

     Sen. Symens moved that Sen. Everist's pending amendment to HB 1258 be further amended as follows:

    On page 3 of Sen. Everist's pending amendment (1258dw) delete Section 6.

     Sen. Putnam moved that Sen. Symens' motion to further amend Sen. Everist's pending amendment to HB 1258 be laid on the table.



    Sen. Symens requested a roll call vote.

    Which request was supported.

     The question being on Sen. Putnam's motion that Sen. Symens' motion to further amend Sen. Everist's pending amendment to HB 1258 be laid on the table.

     And the roll being called:

     Yeas 22, Nays 12, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Diedrich (Larry); Diedtrich (Elmer); Drake; Everist; Greenfield; Hainje; Ham; Kleven; Madden; McCracken; Munson; Olson (Ed); Putnam; Vitter; Whiting

     Nays:
Dennert; Duxbury; Hutmacher; Koetzle; Koskan; McIntyre; Moore; Reedy; Staggers; Sutton (Dan); Symens; Volesky

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members present, the President declared the motion carried and Sen. Symens' motion to amend was laid on the table.

     Sen. Arnold Brown moved the previous question.

     Which motion prevailed.

     The question now being on Sen. Everist's motion that HB 1258 be further amended.

    Sen. Moore requested a roll call vote.

    Which request was supported.

     And the roll being called:

     Yeas 21, Nays 13, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Diedtrich (Elmer); Drake; Everist; Greenfield; Hainje; Ham; Kleven; Koskan; Madden; McCracken; Munson; Olson (Ed); Vitter; Whiting


     Nays:
Dennert; Diedrich (Larry); Duxbury; Hutmacher; Koetzle; McIntyre; Moore; Putnam; Reedy; Staggers; Sutton (Dan); Symens; Volesky

     Excused:
Hagen

     So the motion having received an affirmative vote of a majority of the members present, the President declared the motion carried.

     The question now being "Shall HB 1258 pass as amended?"

     And the roll being called:

     Yeas 22, Nays 12, Excused 1, Absent 0

     Yeas:
Albers; Apa; Bogue; Brosz; Brown (Arnold); Daugaard; de Hueck; Dennert; Diedtrich (Elmer); Drake; Everist; Hainje; Ham; Kleven; Koskan; Madden; McCracken; McIntyre; Munson; Olson (Ed); Vitter; Whiting

     Nays:
Diedrich (Larry); Duxbury; Greenfield; Hutmacher; Koetzle; Moore; Putnam; Reedy; Staggers; Sutton (Dan); Symens; Volesky

     Excused:
Hagen

     So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

     HB 1139:   FOR AN ACT ENTITLED, An Act to   revise the property tax levies for the general fund of a school district.

     Having had its second reading was up for consideration and final passage.

1139xa

     Sen. Hainje moved that HB 1139 be amended as follows:

     On page 1, line 7 of the printed bill, remove the overstrikes from " ninety-three " and delete " ninety-two ".

     On page 2 , line 3, delete " fifty-one " and insert " fifty ".

     Which motion prevailed.


     The question being "Shall HB 1139 pass as amended?"

     And the roll being called:

     Yeas 28, Nays 5, Excused 2, Absent 0

     Yeas:
Albers; Apa; Brosz; Brown (Arnold); Daugaard; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hainje; Ham; Hutmacher; Kleven; Koskan; Madden; McCracken; McIntyre; Munson; Olson (Ed); Staggers; Sutton (Dan); Symens; Vitter; Volesky; Whiting

     Nays:
Bogue; de Hueck; Koetzle; Moore; Reedy

     Excused:
Hagen; Putnam

     So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

     Sen. Everist moved that the concurrence in House amendments to SB 245 be deferred to Saturday, March 3, the 39th legislative day.

     Which motion prevailed.

     Sen. Everist moved that when we adjourn today, we adjourn to convene at 8:30 a.m. on Saturday, March 3, the 39th legislative day.

     Which motion prevailed.

REPORTS OF STANDING COMMITTEES


MADAM PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 98 and 149 and finds the same correctly enrolled.

Respectfully submitted,
Arnold M. Brown, Chair

SIGNING OF BILLS


     The President publicly read the title to



     SB 14: FOR AN ACT ENTITLED, An Act to  amend the General Appropriations Act for fiscal year 2001.

     SB 98: FOR AN ACT ENTITLED, An Act to  establish certain penalties for failure to control weeds and pests.

     SB 149: FOR AN ACT ENTITLED, An Act to  revise certain provisions related to the housing of prisoners from other jurisdictions.

     SB 209: FOR AN ACT ENTITLED, An Act to  permit certain businesses to remit sales and use tax after the machinery is under production.

     SB 225: FOR AN ACT ENTITLED, An Act to  revise certain provisions relating to insurance taxes, cash surrender values of insurance policies, and the payment of insurance benefits.

     HB 1003: FOR AN ACT ENTITLED, An Act to  prohibit the use of genetic tests in the offer, sale, or renewal of certain types of insurance.

     HB 1024: FOR AN ACT ENTITLED, An Act to  authorize the release of certain information about adult inmates and parolees to victims, the community, and governmental entities.

     HB 1045: FOR AN ACT ENTITLED, An Act to  prohibit the disclosure and use of personal information contained in certain motor vehicle records.

     HB 1068: FOR AN ACT ENTITLED, An Act to  authorize the South Dakota Building Authority and the Board of Regents to implement the long-term capital project request of the Board of Regents, providing for the construction, remodeling, or renovation of various structures on the campuses of the state's universities and to make appropriations therefor.

     HB 1079: FOR AN ACT ENTITLED, An Act to  determine the venue of the offense of underage possession or consumption of alcoholic beverages.

     HB 1106: FOR AN ACT ENTITLED, An Act to  revise the classes of investments available for state funds.

     HB 1144: FOR AN ACT ENTITLED, An Act to  revise certain provisions relating to child custody.

     HB 1203: FOR AN ACT ENTITLED, An Act to  appropriate money for the Northern Crops Institute and to declare an emergency.

     HB 1218: FOR AN ACT ENTITLED, An Act to  prohibit directed suretyship.

     HB 1247: FOR AN ACT ENTITLED, An Act to  revise the requirements for volunteer firefighters to become eligible for workers' compensation and to update a reference used to determine impairment.


     HB 1252: FOR AN ACT ENTITLED, An Act to  establish a statewide voter registration file, to make an appropriation therefor and to declare an emergency.

     HB 1253: FOR AN ACT ENTITLED, An Act to  revise certain provisions regarding dealer franchises and to include outdoor power equipment.

     HB 1295: FOR AN ACT ENTITLED, An Act to  allow certain interstate shipments of wine.

     And signed the same in the presence of the Senate.

     Sen. Madden moved that the Senate do now adjourn, which motion prevailed and at 11:07 p.m. the Senate adjourned.

Patricia Adam, Secretary