The prayer was offered by the Chaplain, Craig Petrick, followed by the Pledge of Allegiance led by Senate page Charly Warren.

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

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

Also MADAM PRESIDENT:

    The Committee on Commerce respectfully reports that it has had under consideration SB 50 and returns the same with the recommendation that said bill be amended as follows:

    The Committee on Education respectfully reports that it has had under consideration SB  57 and returns the same with the recommendation that said bill do pass and be placed on the Consent Calendar.

Also MADAM PRESIDENT:

    The Committee on Education respectfully reports that it has had under consideration SB 41 and returns the same with the recommendation that said bill be amended as follows:

    "Section 4. That § 4-5-26 be amended to read as follows:

     4-5-26.   Money made available for investment may be invested in the following classes of securities and investments and, except as provided by §   3-12-117, chapter 3-13, the South Dakota Cement Plant retirement fund, chapter 13-63, and the permanent trust fund containing the net proceeds from the sale of state cement enterprises, not otherwise:

    6:01:06:01.  Definitions. Words and phrases defined in SDCL chapter 13-63 have the same meaning when used in this chapter. Terms used in this chapter mean:

    (1)  "Cash," currency, bills, and coin in circulation, or converting a negotiable instrument to cash by endorsing and presenting to a financial institution for deposit. An automatic transfer,

cashier's check, certified check, money order, payroll deposit, traveler's check, personal check, and wire transfer are cash;

    (2)  "Investment direction," specifying or attempting to specify the particular financial instruments or ownership interests either individually, or within a fund family or other group of financial instruments or ownership interests held as an investment group, into which the contributions or earnings are invested. Investment direction does not mean selecting an initial type of investment program if more than one program is offered;

    (3)  "IRC," section 529 of the Internal Revenue Code as amended on August 1, 2001 January 16, 2002 ;

    (4)  "Program manager," any financial institution selected by the council to act as the depository and manager for the higher education savings plan.

     Section 6. That ARSD 6:01:06:04 be repealed.

     6:01:06:04.  Withdrawals -- Reporting of nonqualified withdrawals -- Penalties. An account owner may withdraw funds from an account on 30 days notice. The designated beneficiary of an account does not have any authority to withdraw funds from an account unless the account is structured to give the designated beneficiary such right of withdrawal upon matriculation or upon incurring qualified higher education expenses.

    (1)  Withdrawals. Types of withdrawals include:

        (a)  Qualified withdrawals. In order to make a qualified withdrawal, the account holder or the account holder's designee must complete a certification, on a form provided by the program manager, declaring that the funds will be used for the purposes set forth in subdivision SDCL 13-63-1(13). The form shall include a statement advising the designated beneficiary and account owner to report, in accordance with IRC, refunds received from a higher education institution. In addition to the certification, a withdrawal is deemed qualified only if:

            (i)        The financial institution is provided with a copy of an invoice from the higher education institution or other supporting material; and

            (ii)    The distribution is made only by check payable jointly to the designated beneficiary and a higher education institution as designated by the account owner, or the higher education institution only, or except as expressly permitted by IRC;

        (b)  Withdrawal based on death, disability, or scholarship. A withdrawal may be made as a result of the designated beneficiary's death, disability, or scholarship, if written substantiation is provided. Written substantiation must be from a party other than the designated beneficiary or the account owner that can independently confirm the circumstances of the withdrawal. For a scholarship, the withdrawal may not exceed the amount of the scholarship;

        (c)  Nonqualified or unsubstantiated withdrawals. Any penalty that exceeds zero percent would be considered more than de minimis based on IRC, therefore the council has determined that no penalty will be imposed pursuant to SDCL 13-63-15; and

     Section 7. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval."

Also MADAM PRESIDENT:

        The Committee on Transportation respectfully reports that it has had under consideration SB 70 which was deferred to the 36^th Legislative Day.

MADAM PRESIDENT:

    I have the honor to transmit herewith HCR 1001 and 1002 which have been adopted by the House and your concurrence is respectfully requested.

     Was read the first time and referred to the Committee on State Affairs.

       FOR AN ACT ENTITLED, An Act to   revise the provisions for moving a structure under or across a utility line and to provide a penalty therefor.

     Was read the first time and referred to the Committee on Commerce.

     Excused:
Reedy

     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.

    "Section 1. That § 1-27-28 be repealed.

     1-27-28.   Terms used in § §   1-27-29 to 1-27-32, inclusive, mean:

     1-27-29.   A state agency which is authorized by law to investigate, examine, or audit the papers, books, records, financial condition, or other information held by or concerning a private entity may not disclose that it is conducting such an investigation, examination, or audit, except as provided by § §   1-27-28 to 1-27-32, inclusive.

     Section 3. That § 1-27-30 be repealed.

     Section 4. That § 1-27-31 be repealed.

     1-27-31.   A state agency may not disclose that it is investigating, examining, or auditing a private entity, and may only disclose the information obtained from such an investigation, examination, or audit as follows:

     1-27-32.   Disclosure of information made confidential by § §   1-27-28 to 1-27-32, inclusive, except as provided in §   1-27-31, is a Class 6 felony. "

     Sen. Koskan moved that Sen. Hutmacher's motion to amend SB 24 be laid on the table.

    Sen. Hutmacher requested a roll call vote.

    Which request was supported.

     The question being on Sen. Koskan's motion that Sen. Hutmacher's motion to amend SB 24 be laid on the table.

     And the roll being called:

     Yeas:
Albers; Bogue; Brosz; Brown (Arnold); Cradduck; Daugaard; Diedrich (Larry); Drake; Everist; Greenfield; Ham; Kleven; Koskan; Madden; McCracken; Putnam; Staggers; Vitter; Whiting

     Nays:
Dennert; Duxbury; Hagen; Hutmacher; Koetzle; McIntyre; Moore; Olson (Ed); Sutton (Dan); Symens; Volesky

     Excused:
Apa; de Hueck; Diedtrich (Elmer); Munson; Reedy

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

     Excused:
Hutmacher; Reedy

     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.

     Was read the first time and referred to the Committee on Local Government.

     Was read the first time and referred to the Committee on Commerce.