JOURNAL OF THE SENATE

SEVENTY-SEVENTH  SESSION




NINTH DAY




STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Friday, January 18, 2002

     The Senate convened at 1:00 p.m., pursuant to adjournment, the President presiding.

     The prayer was offered by the Chaplain, Jerry Oberg, followed by the Pledge of Allegiance led by Senate page Lori Wiese.

     Roll Call: All members present except Sens. Putnam and Reedy who were 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 eighth 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.
REPORTS OF STANDING COMMITTEES


MADAM PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration SB 45 and returns the same with the recommendation that said bill be amended as follows:

45oa

     Delete everything after the enacting clause and insert:

    "Section 1. That § 36-4-19 be amended to read as follows:

     36-4-19.   The Board of Medical and Osteopathic Examiners may, without examination, issue a license to any applicant holding a currently valid license or certificate issued to the applicant by the examining board of the District of Columbia, any state or territory of the United States, the National Board of Medical Examiners, the National Board of Osteopathic Physicians and Surgeons, or any province of Canada, from which the license was obtained by a written examination given by the board, if the legal requirements of the examining board at the time it issued the license or certificate were not less than those of this state at the time the license is presented for registration.

     However, the board may require the applicant to take either an oral or written examination and personally appear before the board, a member of the board, or its staff.

     Each applicant applying under the provisions of this chapter shall pay to the secretary of the board a license fee not to exceed two hundred dollars.

     Section 2. That § 36-4-41 be amended to read as follows:

     36-4-41.   Any nonresident physician or osteopath who, while located outside this state, provides diagnostic or treatment services through electronic means to a person patient located in this state under a contract with a health care provider licensed under Title 36, a clinic located in this state that provides health services, a health maintenance organization, a preferred provider organization, or a health care facility licensed under chapter 34-12, is engaged in the practice of medicine or osteopathy in this state. No nonresident physician or osteopath who, while located outside this state, consults on an irregular basis with a licensee under this chapter who is located in this state, is engaged in the practice of medicine or osteopathy in this state. Consultation between a nonresident physician or osteopath and a licensee under this chapter is governed by §  36-2-9. "


45ob

     In the second paragraph of Section 1 of the previously adopted amendment overstrike "take" and insert " successfully pass ".


45ota

     On page 1, line 1 of the printed bill, delete everything after " Act to " and insert "authorize the practice of nonresident physicians in the state by electronic means facilitated through reciprocal licensure."

     On page 1 , delete line 2 .

     And that as so amended said bill do pass.

Also MADAM PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration SJR  1 and SB 68 which were deferred to the 36th Legislative Day.

Respectfully submitted,
Barbara Everist, Chair

Also MADAM PRESIDENT:

    The Committee on Taxation respectfully reports that it has had under consideration SB  34 and returns the same with the recommendation that said bill do pass.

Also MADAM PRESIDENT:

    The Committee on Taxation respectfully reports that it has had under consideration SB 123 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 Taxation respectfully reports that it has had under consideration SB 36 and returns the same with the recommendation that said bill be amended as follows:

36fa

     On page 2, line 10 of the printed bill, delete " on each local exchange access line " and insert " per cellular telephone ".

     On page 2 , line 13, after " 2000 " insert " . Notwithstanding any other provision of this chapter and for purposes of the surcharge imposed by this chapter, the surcharge imposed upon mobile telecommunication services shall be administered in accordance with 4 U.S.C. § §  116- 126 as in effect on July 28, 2000 ".

     On page 3 , between lines 6 and 7, insert:

    "Section 5. That § 10-45-6.1 be amended to read as follows:

     10-45-6.1.   There Except as provided in section 1 of this Act, there is hereby imposed on amounts paid for local telephone services, toll telephone services, and teletypewriter services, a tax of four percent of the amount so paid. The taxes imposed by this section shall be paid by the person paying for the services. If a bill is rendered the taxpayer for local telephone service or toll telephone service, the amount on which the tax with respect to such services shall be based shall be the sum of all charges for such services included in the bill; except that if a person who renders the bill groups individual items for purposes of rendering the bill and computing the tax, then the amount on which the tax for each such group shall be based shall be the sum of all items within that group, and the tax on the remaining items not included in any such group shall be based on the charge for each item separately. If the tax imposed by this section with respect to toll telephone service is paid by inserting coins in coin operated telephones, the tax shall be computed to the nearest multiple of five cents, except that, where the tax is midway between multiples of five cents, the next higher multiple shall apply. The tax so paid shall be remitted at the same time as the sales tax imposed by this chapter. "

     And that as so amended said bill do pass.

Also MADAM PRESIDENT:

    The Committee on Taxation respectfully reports that it has had under consideration SB 60 which was deferred to the 36th Legislative Day.

Respectfully submitted,
Eric H. Bogue, Chair

MESSAGES FROM THE HOUSE


MADAM PRESIDENT:

    I have the honor to transmit herewith HCR 1004 which has been adopted by the House and your concurrence is respectfully requested.


Also MADAM PRESIDENT:

    I have the honor to transmit herewith HB 1019, 1020, 1021, 1038, and 1053 which have passed the House and your favorable consideration is respectfully requested.

Respectfully,
Karen Gerdes, Chief Clerk


MOTIONS AND RESOLUTIONS



    SENATE PAGE RESOLUTION 1: Introduced by: Senators Albers, Apa, Bogue, Brosz, Brown (Arnold), Cradduck, Daugaard, de Hueck, Dennert, Diedrich (Larry), Diedtrich (Elmer), Drake, Duxbury, Everist, Greenfield, Hagen, 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- seventh Legislature of the State of South Dakota to Nikki Big Crow, Darcy Dunker, Ashley Eichstadt, Carrie Gonsor, Mariah Kennedy, Jeanette Nygaard, Shantel Penn, Heather Thompson, Hilary Van Asperen, Charly Warren, and Lori Wiese.

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

    WHEREAS, the members of the Seventy-seventh 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-seventh 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. Everist moved that Senate Page Resolution 1 be adopted.

     The question being on Sen. Everist's motion that Senate Page Resolution 1 be adopted.

     And the roll being called:

     Yeas 33, Nays 0, Excused 2, Absent 0

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

     Excused:
Putnam; Reedy

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



     HCR 1004:   A CONCURRENT RESOLUTION,   Urging the study of the problem of teenage in-vehicle drinking and drug use.

     Was read the first time and the President waived the committee referral.

CONSIDERATION OF REPORTS OF COMMITTEES


     Sen. Everist moved that the reports of the Standing Committees on

     Commerce on SB 37 as found on page 98 of the Senate Journal ; also

     Commerce on SB 50 as found on page 99 of the Senate Journal ; also

     Education on SB 41 as found on page 100 of the Senate Journal ; also

     Transportation on SB 71 as found on page 102 of the Senate Journal be adopted.

     Which motion prevailed and the reports were adopted.

FIRST READING OF SENATE BILLS AND JOINT RESOLUTIONS


     SB 137   Introduced by:  Senators Daugaard, Brown (Arnold), Diedtrich (Elmer), Duxbury, McIntyre, Reedy, and Whiting and Representatives Hunhoff, Brown (Richard), Glenski, Holbeck, Peterson (Bill), Pitts, Smidt, and Sutton (Duane)

       FOR AN ACT ENTITLED, An Act to   allow local units of government to regulate tobacco products.

     Was read the first time and referred to the Committee on Health and Human Services.

     SB 138   Introduced by:  Senators Volesky and Duxbury and Representative Flowers

       FOR AN ACT ENTITLED, An Act to   appropriate money to the state fair.

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

     SB 139   Introduced by:  Senators Greenfield, Apa, Dennert, Duxbury, Koskan, Reedy, and Symens and Representatives Fryslie, Begalka, Hansen (Tom), Hargens, Holbeck, Juhnke, Klaudt, Koistinen, Sigdestad, and Sutton (Duane)

       FOR AN ACT ENTITLED, An Act to   revise the number of allowable hunting days for certain nonresident waterfowl licenses.



     Was read the first time and referred to the Committee on Agriculture and Natural Resources.

     SB 140   Introduced by:  Senator Whiting and Representative Brown (Jarvis)

       FOR AN ACT ENTITLED, An Act to   revise certain provisions governing trusts.

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

     SB 141   Introduced by:  Senator Whiting and Representative Brown (Jarvis)

       FOR AN ACT ENTITLED, An Act to   authorize total return unitrusts.

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

     SB 142   Introduced by:  Senator Whiting and Representative Brown (Jarvis)

       FOR AN ACT ENTITLED, An Act to   allow certain trusts to be shareholders in certain professional organizations.

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

     SB 143   Introduced by:  Senator Munson

       FOR AN ACT ENTITLED, An Act to   exempt ephedrine from the controlled drugs and substances schedule under certain circumstances.

     Was read the first time and referred to the Committee on Health and Human Services.

     SB 144   Introduced by:  Senators Vitter, Albers, and McCracken and Representative Adelstein

       FOR AN ACT ENTITLED, An Act to   provide certain financial and employment protections to members of the South Dakota National Guard.

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

     SB 145   Introduced by:  Senators Diedrich (Larry), McIntyre, and Olson (Ed) and Representatives Begalka, Broderick, Holbeck, and Peterson (Jim)

       FOR AN ACT ENTITLED, An Act to   revise certain requirements for school district reorganization.



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

     SB 146   Introduced by:  Senators Dennert, Greenfield, Koskan, and Symens and Representatives Fryslie, Hanson (Gary), Juhnke, Koistinen, and Peterson (Jim)

       FOR AN ACT ENTITLED, An Act to   increase the number of fall three-day temporary nonresident waterfowl licenses.

     Was read the first time and referred to the Committee on Agriculture and Natural Resources.

     SB 147   Introduced by:  Senators McIntyre, Dennert, Hutmacher, Koetzle, Moore, Staggers, and Sutton (Dan) and Representatives Gillespie, Bartling, Bradford, Davis, Elliott, Flowers, Hargens, Kloucek, McCoy, Nachtigal, Nesselhuf, Olson (Mel), Valandra, and Van Norman

       FOR AN ACT ENTITLED, An Act to   provide for a bill of rights for children in the care of the state.

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

     SB 148   Introduced by:  Senators Brosz, Brown (Arnold), Daugaard, and Whiting and Representatives Solum, Koistinen, and Konold

       FOR AN ACT ENTITLED, An Act to   revise and extend certain provisions relating to the licensure of drivers who have experienced epileptic, narcoleptic, or other convulsions, seizures, or blackouts.

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

     SB 149   Introduced by:  Senators Everist, Brosz, Cradduck, Hutmacher, Koetzle, McIntyre, Moore, Olson (Ed), and Sutton (Dan) and Representatives Peterson (Bill), Murschel, and Olson (Mel)

       FOR AN ACT ENTITLED, An Act to   allow a school district to impose additional taxes.

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

     SB 150   Introduced by:  Senators Staggers and Koetzle and Representatives Lange and Garnos

       FOR AN ACT ENTITLED, An Act to   exempt certain full-time teachers from certain property taxes.


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

     SB 151   Introduced by:  Senators Munson, Albers, Brown (Arnold), de Hueck, Dennert, Hagen, Hutmacher, Kleven, McIntyre, and Symens and Representatives Davis, Bartling, Begalka, Broderick, Brown (Richard), Burg, Clark, Duniphan, Flowers, Glenski, Hargens, Hennies (Thomas), Holbeck, Koistinen, Madsen, Murschel, Nachtigal, Nesselhuf, Olson (Mel), Peterson (Bill), Peterson (Jim), Pummel, Richter, Solum, Van Gerpen, and Wick

       FOR AN ACT ENTITLED, An Act to   limit certain charges and provide a right to rescind with regard to certain installment loan contracts.

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

SECOND READING OF CONSENT CALENDAR ITEMS


     SB 30:   FOR AN ACT ENTITLED, An Act to   limit the ability of the director of the division of securities to review securities registration based on merit review.

     Was read the second time.

     The question being "Shall SB 30 pass?"

     And the roll being called:

     Yeas 32, Nays 0, Excused 3, Absent 0

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

     Excused:
Koetzle; Putnam; 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.

     SB 35:   FOR AN ACT ENTITLED, An Act to   revise the proration of ethanol payments to ethanol producers.

     Was read the second time.

     The question being "Shall SB 35 pass?"



     And the roll being called:

     Yeas 32, Nays 0, Excused 3, Absent 0

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

     Excused:
Koetzle; Putnam; 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.

     SB 39:   FOR AN ACT ENTITLED, An Act to   revise the duties of the filing office in dealing with uniform commercial code records.

     Was read the second time.

     The question being "Shall SB 39 pass?"

     And the roll being called:

     Yeas 32, Nays 0, Excused 3, Absent 0

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

     Excused:
Koetzle; Putnam; 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.

     SB 46:   FOR AN ACT ENTITLED, An Act to   revise certain provisions relating to controlled substances.

     Was read the second time.

     The question being "Shall SB 46 pass as amended?"


     And the roll being called:

     Yeas 32, Nays 0, Excused 3, Absent 0

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

     Excused:
Koetzle; Putnam; 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.

     SB 55:   FOR AN ACT ENTITLED, An Act to   revise the circumstances under which certain financial instruments are presumed abandoned.

     Was read the second time.

     The question being "Shall SB 55 pass?"

     And the roll being called:

     Yeas 32, Nays 0, Excused 3, Absent 0

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

     Excused:
Koetzle; Putnam; 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.

     SB 57:   FOR AN ACT ENTITLED, An Act to   allow school boards to initiate an election to change the size of the school board.

     Was read the second time.

     The question being "Shall SB 57 pass?"


     And the roll being called:

     Yeas 32, Nays 0, Excused 3, Absent 0

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

     Excused:
Koetzle; Putnam; 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.

SECOND READING OF SENATE BILLS AND JOINT RESOLUTIONS


     SB 15:   FOR AN ACT ENTITLED, An Act to   repeal and revise certain provisions regarding the composition of the mental health planning and coordination advisory council.

     Was read the second time.

     The question being "Shall SB 15 pass as amended?"

     And the roll being called:

     Yeas 32, Nays 1, Excused 2, Absent 0

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

     Nays:
Staggers

     Excused:
Putnam; 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.


     SB 21:   FOR AN ACT ENTITLED, An Act to   prohibit tax stamping or payment of taxes on cigarettes or roll your own tobacco products produced by certain nonparticipating manufacturers and to provide for the creation of a directory for compliant nonparticipating manufacturers.

     Was read the second time.

     The question being "Shall SB 21 pass as amended?"

     And the roll being called:

     Yeas 32, Nays 1, Excused 2, Absent 0

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

     Nays:
Staggers

     Excused:
Putnam; 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.

     SB 26:   FOR AN ACT ENTITLED, An Act to   authorize a civil penalty for securities violations by registered or unregistered persons or entities.

     Was read the second time.

     The question being "Shall SB 26 pass as amended?"

     And the roll being called:

     Yeas 32, Nays 1, Excused 2, Absent 0

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

     Nays:
Staggers



     Excused:
Putnam; 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.


     SB 48:   FOR AN ACT ENTITLED, An Act to   expand the Board of Pardons and Paroles to nine members.

     Was read the second time.

     The question being "Shall SB 48 pass as amended?"

     And the roll being called:

     Yeas 27, Nays 6, Excused 2, Absent 0

     Yeas:
Apa; Bogue; Brosz; Brown (Arnold); Cradduck; Daugaard; de Hueck; Dennert; Diedtrich (Elmer); Everist; Hagen; Ham; Hutmacher; Kleven; Koetzle; Koskan; Madden; McCracken; McIntyre; Moore; Munson; Olson (Ed); Staggers; Sutton (Dan); Symens; Volesky; Whiting

     Nays:
Albers; Diedrich (Larry); Drake; Duxbury; Greenfield; Vitter

     Excused:
Putnam; 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.

     SB 54:   FOR AN ACT ENTITLED, An Act to   revise the vote required to authorize a school district bond.

     Was read the second time.

     The question being "Shall SB 54 pass?"

     And the roll being called:

     Yeas 10, Nays 23, Excused 2, Absent 0

     Yeas:
Brosz; Cradduck; de Hueck; Ham; Koetzle; McIntyre; Munson; Olson (Ed); Vitter; Whiting


     Nays:
Albers; Apa; Bogue; Brown (Arnold); Daugaard; Dennert; Diedrich (Larry); Diedtrich (Elmer); Drake; Duxbury; Everist; Greenfield; Hagen; Hutmacher; Kleven; Koskan; Madden; McCracken; Moore; Staggers; Sutton (Dan); Symens; Volesky

     Excused:
Putnam; Reedy

     So the bill not having received an affirmative vote of a majority of the members-elect, the President declared the bill lost.

     There being no objection, the Senate reverted to Order of Business No. 5.

REPORTS OF STANDING COMMITTEES


MADAM PRESIDENT:

    The Committee on Judiciary respectfully reports that it has had under consideration SB 66 and HB 1012 and returns the same with the recommendation that said bills do pass.

Also MADAM PRESIDENT:

    The Committee on Judiciary respectfully reports that it has had under consideration SB 84 and returns the same with the recommendation that said bill be amended as follows:

84ra

     On page 1, line 9 of the printed bill, overstrike " carbon " .

     And that as so amended said bill do pass.

Respectfully submitted,
Fred C. Whiting, Chair

FIRST READING OF HOUSE BILLS AND JOINT RESOLUTIONS


     HB 1019:   FOR AN ACT ENTITLED, An Act to   revise certain provisions related to livestock brands and livestock ownership inspection.

     Was read the first time and referred to the Committee on Agriculture and Natural Resources.



     HB 1020:   FOR AN ACT ENTITLED, An Act to   revise the term of retention of certain records by insurers and to require certain delivery receipts to be forwarded to an insurer.

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

     HB 1021:   FOR AN ACT ENTITLED, An Act to   revise the record retention period for certain insurance licensees and registrants.

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

     HB 1038:   FOR AN ACT ENTITLED, An Act to   authorize certain law enforcement vehicles to exceed speed limits without the use of an audible siren, air horn, or flashing emergency lights under certain conditions.

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

     HB 1053:   FOR AN ACT ENTITLED, An Act to   permit a victim of sliming to request that the defendant be tested for blood-borne pathogens and that the test results be disclosed to the victim.

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

COMMEMORATIONS


     SC 2   Introduced by:  Senator Brosz and Representatives Konold and Solum

         A LEGISLATIVE COMMEMORATION,  Honoring Ryan Wilfahrt of Watertown on receiving the rank of Eagle Scout.

     WHEREAS,  Ryan Wilfahrt has completed the requirements, been examined by an Eagle Scout Board of Review, and found worthy of the rank of Eagle Scout; and

     WHEREAS,  Ryan Wilfahrt has been involved in Boy Scouts for seven years and received a ranking that less than two percent of the Scouts receive; and

     WHEREAS,  Ryan Wilfahrt's accomplishments and achievements in his family and community have earned his ranking as an Eagle Scout:

     NOW, THEREFORE, BE IT COMMEMORATED,  by the Seventy-seventh Legislature of the State of South Dakota, that Ryan Wilfahrt of Watertown be congratulated upon his receiving the rank of Eagle Scout.


     SC 3   Introduced by:  Senator Brosz and Representatives Konold and Solum

         A LEGISLATIVE COMMEMORATION,  Honoring the Watertown High School varsity football team and the staff of the varsity football team.

     WHEREAS,  the 2001 Watertown Arrows won the South Dakota Class AA High School Football Championship with an admirable 12-1 record; and

     WHEREAS,  Coach Doug Schooley and his staff provided leadership and guidance to the players, and the fans provided loyal support; and

     WHEREAS,  the varsity football team played with emotion and intensity, focused on their goals, and completed a successful season to become state champions on and off the field:

     NOW, THEREFORE, BE IT COMMEMORATED,  by the Seventy-seventh Legislature of the State of South Dakota, that the Watertown High School varsity football team be recognized for their excellence for the 2001-2002 school year.

     SC 4   Introduced by:  Senators Brown (Arnold), Albers, Apa, Bogue, Brosz, Cradduck, Daugaard, de Hueck, Dennert, Diedrich (Larry), Diedtrich (Elmer), Drake, Duxbury, Everist, Greenfield, Hagen, Ham, Hutmacher, Kleven, Koetzle, Koskan, Madden, McCracken, McIntyre, Moore, Munson, Olson (Ed), Putnam, Reedy, Staggers, Sutton (Dan), Symens, Vitter, Volesky, and Whiting and Representatives Pitts, Abdallah, Adelstein, Bartling, Begalka, Bradford, Broderick, Brown (Jarvis), Brown (Richard), Burg, Clark, Davis, Derby, Duenwald, Duniphan, Eccarius, Elliott, Flowers, Frost, Fryslie, Garnos, Gillespie, Glenski, Hansen (Tom), Hanson (Gary), Hargens, Heineman, Hennies (Don), Hennies (Thomas), Holbeck, Hundstad, Hunhoff, Jaspers, Jensen, Juhnke, Klaudt, Kloucek, Koistinen, Konold, Kooistra, Lange, Lintz, Madsen, McCaulley, McCoy, Michels, Monroe, Murschel, Nachtigal, Napoli, Nesselhuf, Olson (Mel), Pederson (Gordon), Peterson (Bill), Peterson (Jim), Pummel, Rhoden, Richter, Sebert, Sigdestad, Slaughter, Smidt, Solum, Sutton (Duane), Teupel, Valandra, Van Etten, Van Gerpen, Van Norman, and Wick

         A LEGISLATIVE COMMEMORATION,  Honoring 4-H clubs and 4-H members on the centennial celebration of the founding of 4-H.

     WHEREAS,  the 4-H Centennial is an opportunity to celebrate one hundred years of existence as an educational program for youth ages five to eighteen. The 4-H program is funded with monies by federal, state, and local governments. The 4-H program is conducted through the educational efforts of South Dakota State University and the South Dakota Cooperative Extension Service; and

     WHEREAS,  in 2001, 60,388 youths in South Dakota were reached with various youth development/4-H programming efforts, including 9,072 youth who were reached by traditional 4-H clubs, 43,889 youth who were reached by 4-H school enrichment programs, and 7,427 youth who were reached through 4-H special interest programs. In addition, 5,551 adult volunteers were involved with 4-H programming, and 1,963 youth and adult volunteers were trained in specialized 4-H programs; and

     WHEREAS,  South Dakota 4-H teaches youth life skills, decision-making, communication, responsibility, a sense of community, volunteerism, leadership development, self-confidence, self-assurance, and self-awareness:

     NOW, THEREFORE, BE IT COMMEMORATED,  by the Seventy-seventh Legislature of the State of South Dakota, that the South Dakota Legislature congratulates South Dakota 4-H clubs and their members for their efforts and achievements on behalf of South Dakota's youth on the one hundredth anniversary of the existence of the 4-H program.

     SC 5   Introduced by:  Senators Cradduck, Albers, Apa, Bogue, Brosz, Brown (Arnold), Daugaard, de Hueck, Dennert, Diedrich (Larry), Diedtrich (Elmer), Drake, Duxbury, Everist, Greenfield, Hagen, Ham, Hutmacher, Kleven, Koetzle, Koskan, Madden, McCracken, McIntyre, Moore, Munson, Olson (Ed), Putnam, Reedy, Staggers, Sutton (Dan), Symens, Vitter, Volesky, and Whiting and Representatives Richter, Abdallah, Adelstein, Bartling, Begalka, Bradford, Broderick, Brown (Jarvis), Brown (Richard), Burg, Clark, Davis, Derby, Duenwald, Duniphan, Eccarius, Elliott, Flowers, Frost, Fryslie, Garnos, Gillespie, Glenski, Hansen (Tom), Hanson (Gary), Hargens, Heineman, Hennies (Don), Hennies (Thomas), Holbeck, Hundstad, Hunhoff, Jaspers, Jensen, Juhnke, Klaudt, Kloucek, Koistinen, Konold, Kooistra, Lange, Lintz, Madsen, McCaulley, McCoy, Michels, Monroe, Murschel, Nachtigal, Napoli, Nesselhuf, Olson (Mel), Pederson (Gordon), Peterson (Bill), Peterson (Jim), Pitts, Pummel, Rhoden, Sebert, Sigdestad, Slaughter, Smidt, Solum, Sutton (Duane), Teupel, Valandra, Van Etten, Van Gerpen, Van Norman, and Wick

         A LEGISLATIVE COMMEMORATION,  Honoring Jeffrey Lukens of Sioux Falls as South Dakota's 2002 Teacher of the Year.

     WHEREAS,  Jeffrey Lukens, a science teacher and department chair at Roosevelt High School in Sioux Falls, was chosen as the 2002 South Dakota Teacher of the Year and represented South Dakota in national competition for Teacher of the Year; and

     WHEREAS,  he has dedicated more than twenty-one years to the teaching profession, eleven of those years at Roosevelt High School; and

     WHEREAS,  he encourages his students to pursue the teaching profession and mentors student teachers from Augustana College; and

     WHEREAS,  he considers the ideal educator as someone who sees students through compassionate eyes, gauges their teaching performance against student expectations, and is accountable to the students:

     NOW, THEREFORE, BE IT COMMEMORATED,  by the Seventy-seventh Legislature of the State of South Dakota, that Jeffrey Lukens be congratulated upon his selection as South Dakota's 2002 Teacher of the Year.

     SC 6   Introduced by:  Senator Vitter and Representatives Lintz and Pederson (Gordon)


         A LEGISLATIVE COMMEMORATION,  Commending and honoring Margie Reynolds, a member of the Hill City School District, on her selection as the 2001-2002 Outstanding School Board Member.

     WHEREAS,  Margie Reynolds has served her community and state by serving on the Hill City School Board for ten years, with five years as board president. Through her efforts the Hill City School District continues to grow in student numbers by her diligent participation in studies and projects that insure the availability and appropriate facilities for the growing student population; and

     WHEREAS,  Margie Reynolds has served the Hill City School District and the school districts of the State of South Dakota as a member of the Associated School Boards of South Dakota Board of Directors from August 1997 to August 2001, and was active at both the state and national levels; and

     WHEREAS,  Margie Reynolds has given of her personal time, resources, and talents supporting existing and proposed programs in the Hill City School District, prompting Superintendent Don Emch to call her the most dedicated school board member he has worked with in his thirty-two years as a school superintendent:

     NOW, THEREFORE, BE IT COMMEMORATED,  by the Seventy-seventh Legislature of the State of South Dakota, that Margie Reynolds be recognized and honored for her selection as 2001-2002 Outstanding School Board Member.


    Pursuant to the Joint Select Committee Report found on page 11 of the Senate Journal, the following is Governor William J. Janklow's State of the State Address:


State-of-the-State Address
January 8, 2002
House Chambers, State Capitol

Thank you very much, Ladies and Gentlemen. Thank you.

Madam Lieutenant Governor, Mr. Speaker, Mr. Chief Justice, Ladies and Gentlemen of the Legislature, and you Ladies and Gentlemen of the Supreme Court and Constitutional Officers.

If I could, I'd like to start off today by introducing a new position for an old member of one of the branches of government. Under our system, the justices of the Supreme Court select for a term the Chief Justice of this State, and the justices of our Supreme Court have seen fit to select as the new Chief Justice for the State of South Dakota David O. Gilbertson. Justice Gilbertson.

There is one other group that I would like to introduce today. It's really the last chance that I'll ever get to do this. They are a group that has really been as much a part of me as myself virtually my entire public career and even before that. Today I have with me in the back of the room behind these House Chambers Mary Dean, our son Russell, his daughter Lindsey and

Will, our daughter Pam and her husband Randy, our daughter Shonna and her husband Bill and their two children, little Daniel and little Emma. That's little Daniel back there waving at me.

I want you all to know that one of the things that you really get blessed with in life is to have a family, especially a family like mine who have had a terribly easy time in life living with me. But, I want to thank each and every one of you. You are more than special. You're the same thing that families mean to everybody, and thank you for coming. Thank you, frankly, for always being there whenever I felt that there had to be somebody or you felt there had to be somebody to take care of me. You're a marvelous group of people. And thank you, all.
What I've done today is decide to come and give you a report on the state of the state, and I'm trying to do it a little bit different way. I'm going to really break this report into two parts, the report of where we're at because of where we've been and the road we've traveled, and then what the challenges are that we have to deal with. What I am going to try to do today is to really address both those kinds of things, recognizing that we've done a lot together. We truly have done a lot together.

Way back when I first became involved in running for Governor years ago, I said there were four perspectives that I felt I would always have to bring to public life if I were successful.

One, you always put taxpayers first.

Two, we have a responsibility in government to provide for the public education of our citizens.


Three, we have a responsibility to protect the people and the property within our sovereign sphere.

And four, we have an absolute responsibility to care for people who can't care for themselves. We get into fights at times as to at what point should people start taking care of themselves or at what point should they be fully responsible for themselves, but we never get into a fight where we're taking care of people who truly can't help themselves.

We get into arguments about what ought to be against the law, and if it is against the law, what should be the penalty, and if you get a penalty, for how long should you be penalized. But none of us argue that we need a system whereby we can maintain the protectoral integrity of the people and the property within this state.


There could be no one who I've ever heard argue that every one of us doesn't have a fundamental responsibility to make sure that we provide a quality educational opportunity for every child and every adult in this state that wants one. Can we afford all we want? No, we can't, and we have never been able to throughout our history. But the really important question is, Are we always moving forward in the right direction, closing the gap that we have to close to provide for a quality educational experience?

Finally, do we truly put taxpayers first, recognizing how important that truly is? There is no such thing as government money. There is no such thing as federal money or state money. Money is paid by human beings. No corporation pays taxes. They get their money from people. No business pays taxes. It gets its money from people and the owners. Individuals who earn pay taxes, and it is the earnings that they have that give them the ability to go out and make the purchases and make our economy move.

Way back when I was running for Governor eight years ago, my opponent and I both said that we would cut property taxes 30 percent. Every member of the other party, my friends that are Democrats, picked up the pledge and said they would cut property taxes 30 percent. Every member of my party made a public pledge. We would cut property taxes 30 percent, and we worked hard to deliver on that after the election was over.


If you take a look at this chart, what you can see is the success of that program. When I hear people that say, “I can't afford any more property tax relief,” I know I am usually dealing with someone who's got rapidly appreciating value property or doesn't quite shoot square with

people, one or the other. Because, the reality of the situation is, you can see by the blue lines on that chart what taxes were in property tax collections going back to 1983. You can see the huge rises that started to take place in '92, '93, '94, '95 that brought about a citizens' revolt. When Jim Beddow and I were running for Governor years ago, at every single debate, every single question by the media, every public appearance, the first question always was, What are you going to do about property taxes? That was always the dominant issue. As a matter of fact, we had an election that year where our people voted on a constitutional referendum that had been created by initiative. That constitutional referendum, rolling back over about $300 million to $500 million of taxes, lost by less than 1600 votes. In a statewide election, only 1600 votes separated the victory from the loss on the various sides on that issue. That's how angry our people were at property taxes.

You Ladies and Gentlemen that were in the Legislature then and ourselves, we went to work on this. We rolled up our sleeves, and it wasn't easy, but we'd made a promise. And, if your word is not any good, nothing about you is very good.

So, you can see that it took us more than four years. It took us several years, but we were able to achieve that 30 percent rollback for homeowners and agriculture property. What you see in the yellow are the payments that have been made the last six years into the funding of the schools. That's money that would have been paid by property taxpayers had we had the old system still in place. We kept our word. We kept our bond with the public.

Let's look at some of the things that have taken place over the last several years in South Dakota. Yeah, part of this is bragging. I understand that, my friends. But it is not just me bragging. As you look at this list, you'll see almost all of it required you, Ladies and Gentlemen, to be partners, to be a part of it. Frankly, some of you never voted for any of it. You were against it all, but we have people that wake up in the morning and their glass is always half full. Thank God most of the people in this state wake up in the morning and most of their glasses are not half empty. That's how you look at it. That's how you really look at it.

In the Digital State Survey for the second year in a row, South Dakota is number one in the nation. This is the only time in the history of keeping these surveys that a state has repeated as number one in education. You can see on this column what's happened in moving forward from 1997 to where we are today in the various categories that there are up there_a phenomenal achievement by a little old state like South Dakota, a state without many resources.
As you look forward at where we are with respect to technology in schools_and I'm not going to go through the whole thing, because you are all so familiar with it. But, you can see, back in 1999, not very long ago, two legislative terms ago, you can see that there were only 1800 K-12 educators on E-mail. Today, there are 9900 educators within our K-12 school system on the State's E-mail system. Last year, 4.5 million E-mails transpired between them in the first three months of the school year or this past school fall. Think of that. In September, October, and November, there were 4.5 million messages that went back and forth between the various educators in this state connecting with each other over the E-mail system.
We've got 1119 high school students today that are taking courses via the Dakota Digital Network, our network that we've all set up that you folks and I fund with the people's money where the state pays it all. We've got 1119 high school students taking all those courses that you see up there; Spanish I, II, III; anatomy; art; calculus; chemistry; college algebra. And this is just the beginning. This is honestly growing almost_it's arithmetically, but I say almost geometrically_in terms of this phenomenal growth that's taking place since these schools have really bitten into it, and Northern State University has really started to aggressively come forward.

As a matter of fact, let's look at some of the things we've done together in K-12 education, stuff that I'll call out of the ordinary, out of the ordinary.

We wrote a new state aid formula. In most states in this country, it has had to be done by judicial decree. It has had to be done by court order because they had unfair formulas. We had the political will between us all to sit down and write a formula back in 1995. A whole slew of people_Jan Nicolay and Barb Everist and many of you Legislators, Dave Knudson_rolled up their sleeves and went to work. We got a new state aid formula and a new special aid formula. Other than the fact that some people complain about the special moneys that we created for the smaller schools_for all the schools that have less than 600 students in increasing proportion until you get to the point where schools under 200 K-12 students are treated as having six students for every five that they have. Other than that one factor, this is the fairest formula on the planet, because it is based on the community's ability to pay and wealth. So all students, all students are treated equally under our formula.

We've wired 622 public school buildings, all the private school buildings that wanted to be wired, every public university, every private university, and every public library. There is no question we are ready for the next millennium, the one that we're in, with respect to the technology base that's in place.

There is not a state in the Union that has a course for teachers, their classroom educators, that goes to 200 hours to learn how to utilize technology. Forty percent of all the classroom teachers in this state, 40 percent, four out of every ten drawing a paycheck for being teachers or educators, have been through that TTL course that has a minimum of 200 hours of instruction in how to utilize technology to enhance learning.

By the way, folks, these folks are incredibly valuable, because there is a shortage of them. There are none in the world. We have a corner on the market in terms of our percentage, and they are living proof that every time you give someone advanced skills in South Dakota, they're not going to run away someplace else and work, even though they can make more money virtually anyplace they go. So, as we look and we examine in other areas where we have to make special efforts, we should remember. Just because we help somebody educate themselves in life does not mean they are always going to run away and go someplace else and take advantage of the financial opportunity. There are all kinds of considerations people make. Most of the people in this room could make more money had they lived someplace else, but there are reasons people make decisions on where they want to live. In the world we live in today, there are going to be a lot more people that are going to be wanting to move home as we create new opportunities for them and their spouses and their children.

Our open enrollment program has been phenomenally successful. The first year, 1598 students transferred between schools, and this does not include transfers within a school district. It includes transfers from one district to another in a year. The second year, it was 2000. The third year, it was 3800. This is growing at the rate of about a thousand a year. Over three years, 8300 opportunities have taken place by students moving between school districts.

We passed content standards. This was a battle. This was tough. Just two weeks ago at a public hearing, one of the people at the public hearing complained that the standards were too tough. Were they expected to teach to the standards? If you teach to the standards, the

content standards, the students are going to be able to pass the tests. But, more important than passing the test, they'll have the fundamental knowledge in the subject matter that they have to have to get ahead in life, to go to the next grade, to go to the next phase of their life.

We've got a reading enhancement program. I've just been invited_about two weeks ago, I got an invitation to go down, the latter part of this month, to Houston, Texas. I'll bring a team of people from the State, to go with the federal Secretary of Education to attend a convocation or seminar where they want to discuss what we can do in America about trying to do something about increasing the reading levels. Ladies and Gentlemen, we've done it. Two years ago, we brought you a program on about a week's notice after having visited with a gentleman in the Sioux Falls School District and the teachers. I had the privilege of meeting with all the teachers of the year in South Dakota that came to my house one day. I won't mention their names, because I promised them I wouldn't burn them. So, I won't do that, but they came and we had a marvelous meeting.

We all talked about the importance of reading, so out of it came this program. We couldn't afford to do Reading Recovery and Sylvan Learning and some of the specialized, expensive courses. So, we put good minds together from Sioux Falls College, the University of South Dakota, SDSU, several of our schools. We put people together in the public school systems and the Department of Education. They came up with a curriculum that you folks funded at our request. Last year, it was so successful, a year ago now, that we asked you to expand the program. By popular demand, it was asked, don't take it to the first and second. Take it to the first, second, and third grades, and let's accelerate it and get it done quicker.


Honestly, the only criticism I received was a school teacher in one school system who complained they hadn't had enough time to prepare themselves for the launch of their students in the fall, last September. That is the only complaint. I received reams of accolades responding to this program that's been put in place.

We've purchased with taxpayer funds from the state level 16,500 computers to augment what's going on in the K-12 schools out there. We are clearly number one in the nation. And it isn't important that we're number one with computers unless our people know how to put them to use and use them, our teachers can instruct with them and utilize their value, and the students can get the ability to enhance their learning by utilizing them. We have that in place in South Dakota.

US WEST gave us a donation of $17 million, every penny of it. As a matter of fact, the agreement that I negotiated with them provided that in all the non-US WEST territory_the territory that's covered by the private telephone companies, the municipal telephone companies, the co-op telephone companies like ours at Splitrock in Brandon_they would get the same benefit in their schools as all the other schools. US WEST agreed to that. It was a $17 million investment in what we call the Vtel program.

The state pays for all the networking in South Dakota. I am not aware of anyplace else in America where all the network costs amongst and between the schools for the utilization of technology are taken on as a state burden.


We've got the distance learning changes that have taken place at Northern State University. Ladies and Gentlemen, we asked you to make those changes last year. After debate and deliberation, you did. I'm going to send you the monthly report that I got for December. It will be in your mailboxes tomorrow or the next day. You've got to read what people can do when they get focused and get behind something. Incredible stuff has taken place since the fiscal year started July 1 at Northern State University with what they've done to move forward to launch into a distance learning specialty center for this planet_clearly South Dakota, but for the planet.

We put a program with social workers in schools. Actually, when this was originally thought of, I didn't think it was that good an idea. I said, "Let's try it. Experiment." And I was up in Watertown on a Saturday at a session that was unrelated to government, and two ladies_we were using the vo-tech building facilities for the meeting hall, their auditorium. As I stepped off to the side later in the day, these two ladies that had been around a couple of hours approached me and introduced themselves. They were classroom teachers in the Watertown School System. They said, "Are you going to keep that program?" I said, "I don't know if it is any good." They said, "Don't get rid of it. It is the best thing that has happened to some of our kids."

Then they gave me an example of a young lady who was in the fifth grade, who'd been a pretty normal student. Then all of a sudden, the one teacher started to notice that she was becoming more and more marginal all the time, just kind of sliding down the slope of life. So they got the new social worker involved, and the social worker became involved with the young girl, went home, and met the parent. The young lady lived in a single-parent household, had a mother and a two-year-old brother. And the two-year-old brother was being raised by the fifth grader who was responsible for clothing and feeding and taking care of the little boy. The burdens were just too much. Frankly, this was a situation, fortunately, where the mother wanted help and was willing to have some, and it wasn't even public. There were some private agencies in the Watertown community that stepped forward and provided assistance and certain kinds of nurturing and other kinds of assistance for the family. And, they said, "Very quickly you could just see this young girl going boom, boom, boom; right back up the stairs to being a normal fifth grader." The burdens were lifted off her shoulders that no fifth grader should ever have to carry.

So, we expanded this program with your permission, and we now have it in 18 school districts. Sioux Falls runs their own program, funding it themselves, so we don't have to fund any of those within the Sioux Falls School District.

Then, in the last eight years, we've put, over and above the legislative funding, $12 million additional dollars into the purchase of equipment, specialized equipment, to make our tech schools at Sioux Falls and Watertown and Mitchell and Rapid City the best equipped tech schools in the nation for the subjects they teach. Really, it has been phenomenally successful.

As a matter of fact, if you look at Tech Trends last summer, the issue of Technical Trends, the entire issue of the magazine, about eight articles, is all devoted to what South Dakota has been doing and what has been taking place in South Dakota. I'm sure you all got from us a copy of the Newsweek article that was written in the last couple of months about what is going on in South Dakota with respect to technology in our schools.

No, we haven't done everything we wanted to do. We haven't been able to afford to do everything we wanted to do. But with the limited amount of resources we've had, folks, you can be terribly proud of what we have leveraged, because nothing on that list was there before we started to move forward together as a team in these directions.

Talk about helping children. We asked you for permission to start a statewide program of chickenpox vaccinations. It was a hotly contested discussion, but it passed the Legislature, thank God. And, for those that are willing to do it_it is not mandatory_over the last two years, we've got almost 31,000, almost 31,000 students. If you'll remember, we were going to collapse it from the young people moving forward and from the Kindergarten moving backward so in a couple of years we'd get them all done. Well, we're almost there. We've had 30,000 students that have been immunized for chickenpox over the last two years.

We've got a statewide early childhood screening program. We had some rural hospitals that couldn't afford the screening devices to check the hearing of the newborns, and we purchased them with Department of Health funds and actually just gave them as a donation to those hospitals that said they couldn't afford it. Because it is so important that all kids in this state, when they are born, very quickly have a hearing examination so determinations can be made as to whether or not they need any special kind of assistance and, if so, What's the special assistance they need so we can get them off to the best start we possibly can?

Bright Start Boxes, which you are all familiar with_we've distributed 19,200. Of all the programs I have ever been involved in, I don't think I've ever received more Christmas cards, birthday cards, notes written with fingerprints, footprints, drool_Lord knows what else they come in_but all these thank-you notes are for those little packages. As a matter of fact, as part of that program, last year we started a responsive parenting program, put it on public television, used the facilities of some true experts. We've got international experts in early childhood development that live in South Dakota and work in this state. Putting them to use, we've had 650 parents that have had this responsive parenting course, and 782 have responded and received materials from having watched it on public television, in addition to the 650. We are really breaking ground with respect to breaking the cycle in some families of the inability_I don't honestly know any people I've ever met that carried a child to term and then wanted to abuse it. It just doesn't happen. It just doesn't happen. But we've got people that don't know how to be parents. We've got some families that are in their fourth generation of dysfunctional families. And the apple doesn't fall far from the tree, but it falls a little from the tree. So every generation, you've got apples falling a little bit all the time. Pretty soon, you've got a terrible

mess. It's exactly what we have in some families. So, moving forward on this has really been an exciting venture.


We asked you, Ladies and Gentlemen of the Legislature, several years ago, Would you assist us in legislation dealing with fetal alcohol syndrome? I've told you this before, but as long as I live, I'll remember. And I'll tell the story of the woman from Davison County, years ago when I was Governor, that gave seven children to the State of South Dakota, all of whom had fetal alcohol syndrome_seven of them, all of whom had fetal alcohol syndrome. A study by the State of North Dakota one time determined that someone with fetal alcohol syndrome costs taxpayers about $1.5 million worth of special assistance and help in the course of their lifetime in terms of medical needs, special education needs, and, a lot of times, criminal justice needs_very expensive_and fetal alcohol affect. The tragic thing is, these aren't things that God does to you. They are 100 percent preventable, 100 percent preventable. We actually got some legislation that's enabled us, helped us to move forward. Some of the Indian tribes have also jumped into this program to help, and this has been just really an exciting venture to see us moving forward in this regard.

The early intervention of juvenile offenders program that you've heard us talk about before, we've had, as of today_I had them get these statistics this morning. Eight thousand four hundred sixty-eight young boys and girls, teenagers, basically, that have gotten themselves into trouble with minor violations of alcohol or drugs have not had to go through the court system, who have been able to be diverted utilizing the resources of the court system and the state's attorney's office. A decision was made not to formalize anything. And when I say 8468, that's the successful ones that, at this point, have not been back in trouble_a phenomenally good program.


Then we have the General Patrick Brady Boot Camp, and we have the Quest program for girls. Both of them are marvelous programs. Their success rate is three out of four. That rivals anything anyplace in the nation anywhere in any kind of program, public or private. But, where you get a child who's gotten to the point in their life where a judge has made the determination they should be removed from their family and their community and placed into someone else's custody, three out of four of them have successful treatment. The boys' is a program of about four months, three months boot camp and one month intake. The young girls are about a month to a month and a half longer. Truly phenomenal.

We asked you for a program, as I said, to deal with immunization. If you remember the statistics from years ago, we've gone from 62 percent immunization of what I call age- appropriate shots for measles, mumps, rubella, whooping cough, chickenpox, and those sicknesses. We've gone from 62 percent age-appropriate shots to 79 percent since 1995. Just think of that, folks. How many kids aren't going to be sick? How many won't be blind? How many won't have mental problems? How many won't have all kinds of afflictions because of the program that you Ladies and Gentlemen were willing to put your weight behind and all our money behind?
Let me talk about some other problems that we've addressed. We asked you last year if you would give us the funding, and we got some funding also from the private sector, to have a statewide diabetes checking period. In April of this year_and actually we'd have liked to have done it later, but the Diabetes Association had already announced that period, so we utilized that period_there were 590 sites. Over a one-week period of time, there were 31,000. This is the first time, the Centers for Disease Control has told us, as best they know, this is the first time any state has ever done this in a statewide effort. We tested 31,500+ people for blood sugar and almost 3000, it was 2900 and some, so I say 3000 of them had elevated blood sugars and were referred to their family doctors.

We tested 24,700 for high blood pressure. And listen to this. A third of them, 34 percent is what the number was, but over 8000 of them had elevated blood pressure, and we referred them to their doctors. Just think of what we were able to accomplish.

That organ donor program where we got your permission to have people sign up for being organ donors on their driver's licenses_the legislation lets me, if I want to make that decision, to formalize it. It can't be reversed after I am gone or as I am leaving, either way, if I make that decision. Fifty-four thousand eight hundred South Dakotans have responded and identified themselves formally as organ donors to give life to somebody else. Think about that. What could be a greater gift than, as you leave, to give somebody the stuff, the parts, the organs you are not going to ever again need, be it a heart or a lung or a kidney or a pancreas or a liver or a bowel or a stomach or Lord knows what, the cornea or tissue from the skin as these medical things advance.

We hear very little today about the problems of doctors in rural areas. We've been very successful with that, again with a new program that we asked you to pass and you did. You worked with us on it and massaged it. And the program that we passed says no longer will we give you a free education. You go to med. school, you go to an appropriate community, and

when your loan payments become due every year, we'll make your loan payment. That program has worked very, very well.

This is a bragging point by me, but during the eight years that I've been here this time and the eight years before, over 50,000 miles of rural water pipes have been laid in the ground. That would circle the earth twice, plus. Over 50,000 miles have been laid in the ground.

We've got the Missouri River land transfer program. You gave us permission to accept it. Working with Senator Daschle, the Corps of Engineers, Congressman Thune, Senator Johnson, this legislation was able to get passed through the Congress. Three times it had to go through. Now, but for a lawsuit, it would be done. Most of it is done. The lawsuit will be over in the not-too-distant future. Then we are going to be able to fix up the mess that the Corps has left us and the remaining campgrounds that have to be fixed up.
We've had a program, and I realize, folks, I understand as much as anybody, the risk in putting inmates to work. I really understand that risk. We work very hard to make sure they are classified properly. We work very hard to make sure that we pick the right people and that certain offenders, even on good behavior, can't participate in the program. Secretary Bloomberg and his staff, Warden Weber, those people are phenomenal in terms of how they perform.

We wired the schools. We did a $100 million wiring job, folks, for $15 million.

In terms of roofing, for the last four years, I've had roofing crews for state office buildings. They have put on 68 roofs representing 3.2 million square feet, have put on all kinds, from the vulcanized roofs to the shingle roofs to the tar and gravel roofs. You name it. But our inmate crews, and these people are highly skilled when they get out of prison, but the savings to the taxpayers are in the tens and tens and tens of millions of dollars.

We have tuck-pointed 32 buildings including this one at 10 different sites, 32 different buildings in 10 different communities.


Our inmates have fought forest fires. I can remember last year during the Roger's Shack Fire on that one road south of Highway 18, the inmates that we'd had working out in Custer State Park the previous winter were trying to widen the fire path on the road, the clear zone. We went by a spot with that inmate crew working and came back about 45 minutes later. Honest to God, they'd gone about a quarter of a mile. I never saw people in my life who could cut trees down like these folks. And the praise that the public gives them, the adoration that they get, the

respect that they're shown, they respond like anybody. It is truly phenomenal how well they've done.

We've got them out there thinning forest now. We have a crew, as I speak, that is working for the US Forest Service, thinning in their forest. And then we've also got them working in Custer State Park. I really had a goal, by the time I left office, to try and get Custer State Park completely done. We probably won't make it. They say we won't make it, but we're not giving up yet. We've still got 11 months.

We've built 800 homes, 755 homes in this state, in the prison. Now, if it is 755, and we've got 750,000 people, that's one for every thousand. If we average two people in every home in this state, for every 500 people, we built a home. There is nothing that rivals this anyplace, anyplace. Nebraska just started this program. Their home costs twice as much as ours. They've just started this program, and theirs is $60,000.

We've made 555 pairs of lights. Every one of you knows from your rural fire departments and your town fire departments the success of this program. Every one of you knows of them. The letters we've gotten back from people that have utilized them at auto accidents and at fires and at communities where the lights have gone off in emergency situations, it is just incredible. I wish I had done it years ago.

They've repaired the state fair grounds.

They've responded to disasters.

They've maintained. Look at this building. Look at the grounds. We have marvelous crews that work for us that are full-time state employees, but they are augmented by the women inmates in this community.

We're rebuilding all the campgrounds on the Missouri River that we've gotten from the Corps of Engineers and also our own, utilizing inmate labor.


We've renovated. If you go across the street to the Health Department building, if you go to the Custer Youth Corrections Center, if you go to the Department of Commerce building in town, you will see buildings that have been totally rebuilt with some skilled labor and the rest inmate labor. The next-door building was one they told me they were going to tear down. Go take a look at it and see the quality of work that can be done with good leadership.

We have rebuilt 2717 bicycles since that program started a couple of years ago.

We have repaired 144 buses that are in all your communities or areas. Every area of South Dakota has one of those buses serving it, and 144 have been brought up to snuff, so to speak, by the prison labor.

We built 162 handicap ramps that go on people's houses that need assistance to get into their houses. The National Guard has been delivering them, but the inmates have built 162 of them.


In that special program I asked you for a couple of years ago that you augmented again last year for assistive technology for people with neuromuscular diseases_talk to your friends and constituents who have Lou Gehrig's disease or muscular dystrophy or the evils of multiple sclerosis. See what they will tell you that that program has done for them to give them some independence and give them some freedom to keep loved ones out of institutions so there can be home caring for them. We've built 459 devices. We have a lift device where we bought one for $7000 that was made by a Belgian company. We copied it and made it better for $1500. The inmates doing these are lifers. But again, even they, as a news story told one time when it interviewed them, they found meaning in their life. They found meaning in their life in terms of what they are doing.

We've rebuilt so many wheelchairs they told me they can't keep track of them. They said, "Governor, just say thousands and thousands and thousands of wheelchairs have been rebuilt by the prisoners in their programs."

In this last year, 2.3 million hours were done.

Now when we've had disasters in this state elsewhere, look at this. Spencer, the Black Hills, Watertown, Ethan, Faulkton, Armour, Oglala_I don't have to go through and read them all. In every one of these communities, the inmates were some of the first people there and the state DOT employees and the Highway Patrol and all the local citizens. It is unbelievable how everybody pitches in when there's a disaster. I've said it before. If we could just have one session for 35 days where we have a disaster going on in Pierre, we'd get something done. Everybody would jump to and get along with each other.

When a tornado hits a town, I've never been able to figure out which houses were the Democrats' or the Republicans' or the Libertarians'. I never knew who the Norwegians were or the Swedes or the Czechoslovakians or the Germans. Of course, everybody wants to point out who the Irish are, but other than that, you can't figure it out. We're all one people working together.

The beginning farmer program_since it started, we've authorized tax-free loans from the banks. Up to $22.5 million dollars has been spent on 228 farmers in the beginning farmer program.

In ag development, I will be releasing to the press and you folks in the next couple of days the financing, the assistance, the development that's taken place over the last several years. It's an incredible list of assistance to people.

We could do more. We can do better, and I'll get on that in a little bit.

In the James River, trying to clean it up after the floods and snows came and caused all the dead trees and killed all those trees. We removed over 81,000 dead trees up and down the James River through the conservation districts and planted 160,000 others.

In cleaning up South Dakota, 353 million pounds of rubble and wood have been removed, and 29 million pounds of washers, dryers, refrigerators, stoves, hot water heaters.

Think of this. Three and a half million tires have been picked up and hauled away. That's in the face of a program that's been going on for a decade where, when you trade in tires, if you don't want your old tires, they take them for a fee. They charge everybody a fee whether you take them or not, and yet we have still picked up 3.5 million.

We've picked up 10,000 batteries.

We've crushed and destroyed 3500 cars and trucks.

And 1496 buildings have been torn down or scooped off the ground or burned up or buried.

The pesticide containers_we picked up 94,000 that had 60,000 gallons of liquid in them that were dangerous.


And look at this one, folks. We thought we had about a thousand tanks in the ground when we started that program several years ago. Again, nobody else in America has ever done this, just said_if you've got a tank, we'll dig it up and get it out of here. We have picked up 2919 tanks so far from 2000 different sites. Those are 2900 abandoned tanks that were in the ground. If you will look, in them they had over 550,000 gallons of contaminated water or sludge fuel that no longer has the potential to cause a problem in our groundwater for our people.
Last year, we sold the cement plant. We had a lot of controversy over it. We put it into a constitutional trust and had the people vote for it. What I am trying to show you are two scenarios that were given to me by Steve Myers in the Investment Office.

On the top line, if you see Average Growth 1.5 percent, and on the next set down, if you see Average Growth 2.5 percent, what that really shows on those two charts is what will happen if, over and above the gross return of 6.85 or 7.85, the difference being what is called the average growth factor over and above the income factor. If it is only, only 1.5 percent growth, by the year 2010, we won't have our beginning $226 million in it. We're going to have, after the payouts, $261 million in it, and our people will get the $12 million plus the additional $1.4 million. Now, God willing, some of you will be around here in 2099. If you are and it grows at 1.5, you're going to have a billion dollars you're going to watch them fight over. Under the 2.5 percent growth scenario, it is three times that much. It would be $3 billion. That shows what compounding can do and the sensible methodology you followed to take the consistent $12 million payout, take a little bit more, and put the rest of it away into a growth factor.


There is one thing that the people of South Dakota haven't heard, so I've decided to put it in the speech today. Everybody wanted an independent audit. We got one. We got one on the cement plant. And the auditors, on the page of their opinion said_now I put the underlining in. That isn't in the auditor's opinion, but I put it in because it is so important given the kinds of accusations that were made by some people. "In our opinion, the schedule of gain on sale of

assets to GCC Dakotah, Inc. referred to above presents fairly, in all material respects, the gain on sale of assets to GCC Dakotah, Inc. of South Dakota Cement on March 16, 2001, as determined by the Asset Purchase Agreement referred to in the first paragraph." And it's signed by McGladrey & Pullen.


What that means is, what we told you the contract said, it said. What we told you the deal was, it was. And there's the statement from the auditors that verifies it for posterity.
I just want to show this next chart for a second to show you the 205 communities where we have one of the Governor's Houses that was built in the prison. If it is a red mark up there, it is one of the day care centers built in the prison. In most communities, if they can't afford it, we donate them a day care center. It's not worth arguing over. It is too important that we have an opportunity for a place for our children to be taken care of.
We have new challenges ahead of us, and we've got serious ones.

We're going to be asking for some terrorism legislation. Nothing in South Dakota was ever written in our laws with the anticipation that we would have the threat of a war from within, that we would be invaded by soldiers from another country inside of this state and nation.

We are asking that we provide the same thing for pilots and people that work at airports for ID that they have for automobiles. You have to have a photo ID. Our pilots' licenses should require that people have a photo ID. It never came home more_this was in our hopper since about October, but this weekend brought it into perspective as clearly as anything can.

We need a system for updating who the local officials are. One of the things we found when in an emergency is we want to contact all the mayors, all the city water works directors, all the city commissioners, we have a lot of changeovers in South Dakota on a continuous basis. People quit, they leave office, whatever, and we don't always know about it. We need to know, if they've got one, their home phone number, their office phone number, their fax number, their cell phone number, their E-mail, because in emergencies, you've got a lot of people to get a hold of, especially now. These aren't isolated things where it is a town in crisis. It may be a whole region or a whole state in crisis, so we're going to have to update our laws on how we have the ability. We can file this stuff with the Secretary of State. Or, if we want it to be confidential_and there's a lot of reason to keep a lot of numbers confidential_they could be on file over at the Emergency and Disaster Office and only available to Emergency and Disaster officials and the Governor's emergency disaster staff. But we need to have the ability to reach these people.

We need to modernize our quarantine laws. That's one of the things we need to do. We have quarantine laws, but they were written for what I'll call God's acts of sickness. There was nothing where people would go around infecting other people deliberately, so we don't have the ability to really, really deal with that type of thing.

Then I'm also asking that we pass a law, because it is going to take a law. We've got many school districts in South Dakota that will not allow recruiters of our armed forces to go into our schools and talk to students as they approach their senior year or while they are in their senior year. This is absurd. We've tried to talk to people and get it changed. We can't get it changed, so we're going to have to do it another way, because I think we all need to remember something. It's the soldier who is willing to fight and die that really has given us fair trials. And it's the soldiers that are willing to fight and die that have really given us freedom of speech. And it's the soldiers who have been willing to fight and die that have given us freedom of the press and freedom of religion. We need to pass laws to deal with that.

We've got another problem in South Dakota. We've got it all over the world, stuff that none of us ever thought we'd ever have to deal with. It's the attempts that are taking place every day to get control over the minds and the bodies, sexually in both instances, of our young people. In a survey that was done by the University of New Hampshire, a nationwide survey by the way, of students 10 to 17 years of age, 20 percent of all the kids in that age bracket that were surveyed said they had received unwanted sexual solicitation. Seventy percent of these came while they were on their computers at home. Ninety-seven percent of the solicitations were from strangers. Three percent of those that were solicited were aggressively pursued. Aggressively means someone called them on the telephone; it wasn't just an E-mail thing. It started out E-mail. It turned into a telephone contact or a gift.

We had a person in South Dakota that's been arrested in federal court for having gone down to Florida with a 13-year-old girl that he met on the Internet and having spent a week with her. They're all over the place, out of state, in state. They're everyplace.

As a matter of fact, of those that they know about, 34 percent of the unwanted sexual solicitations were by adults, 48 percent were by minors, and 18 percent they don't know who they were.


But my friends, less than one in ten reported it to their parents. Less than 10 percent of that 10-17 year age group reported the unwanted sexual solicitations to their parents.

Unwanted sexual exposure_one out of every four kids was exposed to bestiality or sodomy or sexual acts being done by human beings or human beings and others. One out of every four in this group, and 67 percent of them came at home.

I know you folks have ideas. We all have some. There's legislation that is model legislation that is being enacted around the country. The feds are active in this. The Attorney General's been active in this. We all need to come together and pass laws that just flat will give our people the ability to be able to deal with this. And I know the arguments will be over what to do, not should we do something.

Another subject that is of some controversy is the opting out. If you will look back to 1997 since opting out has been in place, what you see, my friends, is that the dollar amount of every year where there have been opt-outs by all levels of government_counties,

municipalities, schools, and townships_it's started to go up. This year, it was $6 million. The cumulative impact is now $15 million.

If you look at that $15 million, what you see is that of the $122 million worth of tax relief, we now have 12.4 percent of all the property tax relief that took place in this state has now been removed by opt-outs. That's fine. There ought to be a way that people can opt out. But none of us, when we passed the law_and I don't remember any discussion on it by my staff, any of you that were here, or the public, or me. Nobody talked about how to opt back in. Should it be permanent forever? Should one opt-out one time by one city council, county commission, school board, township board, or whatever, bind you until the end of time? There is no provision to opt back in. Why don't we have the provision that when there is a vote, it is just like a bond issue? We require 60 percent on a bond issue. Why? Because you're going to take the taxpayers' money for a period of time until the bonds are paid off. What's the difference between that and an opt-out? There is none. There's an analogy. They're the same. When someone opts out, they should state for how many years the opt-out is taking place. Then voters and elected officials ought to have the ability, somehow, to opt back in.
This next chart, the next three charts, are just incredible. We've got to understand this, people of South Dakota. We just do. I'm speaking to all of you in this state now, because some people don't care about these statistics, but they are terribly meaningful.

If you will look at the left-hand column, what you will see is the size of our school districts. We have two of them with 10,000 students or more. The next 11 schools have from 2100 to 4100, so you can see what the left-hand column is. Next to that is the number of

schools that fit into each bracket, so opposite 200 you can see we have 52 schools that have 200 or less students.

Look at the average teacher salary. For those of us that don't want to do the math, you can look at column three, because the difference between the schools at 10,000 and those in the next 11 schools in group two is $2753 a year in average school pay. This is FY 2000, because it is the last year we have statistics. Then, if you will look down to the next one, the schools of 1000-2100, you will see that there are 12 of them. Their average pay is $28,000+ a year. That's $2700 less than the second-largest group of schools. And, cumulatively, it is $5500 less than the first school. So, what you can see is, depending on school district size, the average pay for teachers goes from $33,900 to $31,000 to $28,000 to $27,000 to $25,000 to $23,000, and all something. The difference between them in the cumulative change is $2700, $5500, $6700, $8700, and $10,000. Folks, there's our problem.

Now let's take a quick look at the next chart. Let's look at two kinds of tests. I know. Everybody hates tests, but I want to share one thing with you. I'd like to sometime see the people send me a letter that want to fly in an airplane with a pilot that hasn't been tested or want their loved one operated on by doctors who didn't take their boards or who flunked them. Under the argument that, well, all they do is test you on the subject matter, so they're teaching the test. That's what they're supposed to do. Teach you the stuff that you need to know to pass the test. So, there's nothing wrong with teaching people the tests. Just make it long tests, and that solves the problem.

But my friends, let's look. The districts are the same. Let's look now, if we can, at grades four, eight, and eleven. What we see in grade four is they're all about the same, because these are one to a hundred. These are percentile tests, 62.5, 65, 62, 64, 64, 66. At the eighth grade, 70, 68, 67, 68, 68, 70_a nice little bracket. But look what happens in high school. We go from 67 down to 64+ to 62+ to 61+ to 58+, 59+ for the next two. Now, this doesn't mean they are all bad. These are averages of schools grouped together. But folks, if you can't see that there is a statistical plot here, we're all not able to see. It's as clear as anything you could imagine.


Now another test is the ACT test. Try going to college without taking one. You can't. You've got to take the ACT test. We go from 22.6 down to 21.9 down to 21.8 down to 21.3 down to about 20.5, 20.7. That is very significant statistically, folks. Very significant. We do nothing about this except play political games with ourselves thinking that somehow we're

going to seize the advantage politically. There is no hall of fame for cowards that won't address real problems. None. None.

Now let's look at reserves if we could for a moment. Same school districts. Those with 10,000 or more have reserves per teacher of about $13,900; the next group, $22,000+; the next group, $23,000+; the next group, $28,000+; the next group, $38,000+; the next group, $39,000+. Am I the only one that sees a pattern?

Now let's look at all these together. This is all of them together, my friends. I'm going to see to it that this is put in everybody's box and sent to the media and put on our Web site, because our people need to know this as we are having discussions. The lowest paid teachers in this state, by a factor of almost $10,000 from the top paid average, have $39,000 in reserves per teacher on average in their school system versus $13,000. These speak for themselves.

You know, we hear people throw around statistics all the time on our commitment to education. But given the amount of wealth this state has, we've done very well in trying to deal with these kinds of problems. As a matter of fact, let me tell you. I appointed a task force. I announced last year I was going to do it, and I did. I put together a true blue-ribbon group of people. We had a lot more people we could have put on it. I was just limited by how big it could practically be. People from big school and little school areas, people from East River and West River and reservations and nonreservations and metropolitan areas_I mean everything. I really tried to get a cross section_and Democrats and Republicans. And I asked them to come together and take a look at these educational issues. I said, "Don't bother wasting your time on money for one reason. When we have money, we give it to education." Our whole history has always been, we give money to education. A disproportionate share of what we have goes to education, because we know it is important. It is just that we are limited in what we have. Some people argue we ought to tax more. I understand that, but until the people decide they are willing to be taxed more, it isn't going to happen. Every time our people get a chance to vote on cutting taxes, they cut them. The public cuts them. So we have to live with reality.

But last year, during the legislative session, I had a private meeting with Representative Holbeck, and he and I were discussing this. He was telling me he thought I was in error in my feeling that the producers couldn't fix this problem, couldn't address it, because I had said, "Consumers need to do this." I said, "Lawyers and judges can't fix what's wrong with the court system, but the public can do it. Doctors and hospitals can't fix what's wrong with medical care, but the public can, and the teachers and school board officials and administrators can't fix what's wrong with education. The public can."

He said, "I disagree with you, and I'd like a chance to show you." So I told him I would provide some grant funding that was available to me, and he could pick the task force, and so he did.

So, we actually had two task forces, one of them made up of all citizens, some of who were formerly involved in education, and the other all educators of all phases. They are both about to issue their final reports. If they haven't, it will be just momentarily. I'm asking that the Legislature come together as a committee of the whole. We will find suitable facilities within the community because, frankly, if the members of both task forces come, it would be too crowded in here. I honestly believe it is worth the time early in the session to take the time to listen to what these citizens have to say, what they've done, the work they've put in, the analyses they've made, the conclusions they've reached, the recommendations that they have_ whether we agree or disagree with them. They've put a lot of time and effort into this. It's thoughtful effort. And I think that we really need to take a look at it, so I'm asking that we come together of your whole or just a group of you to look this over and listen to them.


When you talk about general funds commitment to education_the source for this is the National Association of State Budget Officers_because everybody is always arguing how much of this or that funding goes into education. These are all the states around us that touch us except Wyoming. We don't have Wyoming because they report it as zero. We called Wyoming and asked them if they would give us their numbers. Because of the oil, gas, and coal moneys that they have that they put toward education, there would be no meaningful analysis they could make. That's why they didn't fill out the forms. But all the rest of them, you can see. Montana puts in 43 percent of its general funds into education K-12. We're tied with Iowa for number two at 37 percent. Minnesota is at 35 percent; North Dakota, 35 percent; and Nebraska, 29 percent. Those are the general funds that are allocated towards education.

    Now, this next chart is one that I feel, personally, strongly about, because wherever I go, I am running into the accusation made by select groups and political people that I don't have an interest in education. My friends, the first red line is the year that I was sworn in as Governor the first time, in 1979. And from 1960_the first time there was ever state aid to education at $2.6 million_from 1960 until 1979, it had grown to $35 million. When I left office, it was $103 million. When I came back, it was $159 million through the Mickelson-Miller administrations and you folks that served in the Legislature then. In the last seven years, it has gone up. It has gone up, almost doubled; $314 million dollars is now the total. It has almost doubled from $159 million. We have put our money, your money, the people's money where our mouths are with respect to what we can afford in education.

    Now some people say, well, that isn't really going to education. It is paying for property tax relief. When we pay property tax relief, we are paying somebody else's bill that was paying for education before. We picked up that responsibility.

    Is it enough? No. It's not enough. I don't even argue that it's enough, at all. What I am saying, though, is, consistent with what we can afford, we put our money into education. Look at the phenomena_there is nothing in our budget. You can't find anything that has increased like that since 1979 in the government. It has gone up 900 percent. That's a nine times increase during that period of time.




    You know, we talk about, we talk about making a difference. I heard somebody say one time that one person can make a difference, but everybody ought to at least try. That's really, really what we are up against, all of us.

    We live in a time, for some reason_and it's a lot better since September 11, because we're afraid_but people don't trust government. They just plain don't trust it. They don't trust the federal government and how it deals with the Black Hills National Forest. We can argue different sides of different issues on calling it environmentalism or public safety or whatever you want, but you're hard pressed to find anybody who deals with these forests that will tell you they are anything but unhealthy, unsafe, dangerous, and a tinderbox. The Southern Hills are almost burned up. I'll have a map on display for you in the rotunda that will show where the fires have been just the last two years_forget all the others, just the last two years' major fires_the Roger's Shack Fire, the Elk Mountain Fire, and the Jasper Fire. Look at the Southern Hills and see what you see about what's been destroyed. And 100 years from now, it won't be back to the great shape that it once was in.

    When these other fires start, we've got 100,000 people that live in or adjacent to the Black Hills National Forest. You'd better believe it is trouble.

    We're having immense problems with the Homestake Gold Mine deal. I can tell you there's nobody that hasn't busted their tails to get this done that's involved in it. Tom Daschle has been in it up to here. John Thune has been in it up to here. Tim Johnson has been in it up to here. I've been in it up to there. We have really worked hard. We've all tried to work together, but I can tell you. The legislation that passed is unacceptable to the people that would give us the mine. I frankly don't know, and I don't like to be the bearer of bad news. I understand the political consequences in that, but I am shooting straight with you all. We may not get it, because Homestake doesn't trust the government. They just don't trust them.

At one point in the discussions, I said to them, before we got to where we are at now, "What's the reason for the intensity of this feeling?"

Because, I can tell you, folks, there was a time when Homestake was a terrible citizen. They were. They used mercury in separating gold from ore, and arsenic and cyanide, lots of things that they didn't handle responsibly. They were put on the Superfund. I put them on the Superfund site when I was Governor before. I nominated them and they were accepted.



    They were the first business to ever come off the Superfund because of what they did to clean up their area and clean up Whitewood Creek. It became an international model of environmental action. They actually invented a microbe that ate cyanide, phenomenal accomplishments and engineering achievements. They became a great citizen. They even embarked on a program to clean up old mines that weren't even theirs. They cleaned up a lot of them in the Hills that they had nothing to do with before they decided they were shutting down.

    But I said to them at one point in the private meetings we were having, "What's the reason for this intensity?"

    He said, "Governor, let me tell you. It's like tar on a road. You reach out and you shake hands with the federal government. When you take your hand back, they're stuck to you. They never come off. We can't get them off, so we're not going to deal with them on it."

    The enormity of the loss to this state cannot be calculated. Forget the monetary side of it which is huge. The educational side is even far more important, really far more important.


    We have Amendment E which comes from peoples' mistrust. Frankly, the way it is written, it is a problem. Do we need nothing? No. We don't need nothing, but we need something that's more conducive to getting development in this state. Virtually every project we have of magnitude needs a governmental subsidy or a grant from the government of some major proportion in order to go. Pick your project, and I can show you the moneys. They either need a subsidy or a grant.

To make a project successful, you need three things. You need management. You need labor. And, you need capital. Yes, you can cripple yourselves on any one of the three, but if you really want to be successful, you need good labor that's well taken care of. You need good management that takes care of its people and makes wise decisions. And, you need capital. You've got to have all three or you'll live on subsidies and grants forever and hope you make it. We need to take a look at that.

Look at the immense problem we're having with prairie dogs, lots of criticism on prairie dogs. But, I can tell you, my friends, if we do nothing, they are going to list it as an endangered species. These people that say, "It ain't going to bother me. I'll just fight them." The last time someone fought the federal government, it was called the Civil War. They lost. It sounds good on the news, but you lose. They are going to win when the law is on their side. And the US Supreme Court, whether we like it or not, has ruled the law is on their side on everything from spotted owls to you name it. There are things we can do, but, again, it's the distrust of people.

The deal we put together, people say, "I don't believe the feds that they are going to mean this." They want it in writing, so we're actually working on getting it in writing so that we can move forward with it.

Our wetlands, the same thing. They don't trust the government. How do you explain to farmers in Brookings County, Moody County, Dewell County, Grant County that their rules on what a wetland is should be different from somebody 100 feet or one foot away in Minnesota? How do you explain to a couple of farmers that own adjacent property in both

states that their wetland rules are different in two different states by the same federal government? They don't trust.


Same thing in the arguments people make about reserves for schools. They say, "Well, I need those reserves. We don't know if we can depend on our funding." In the history of this state, state aid to education has never been cut. You just saw the chart. It has gone up every single year since it started in 1960. It is 41 years old, and people are saying they are still saving. It's like years ago when I was on Taiwan as a Marine. I saw a mountain of tires. I said, "What's this?" They said, "It's for the invasion of China." The tires were moldy, they'd had them so long, but they were still saving them.

You know, when they signed the Declaration of Independence, they pledged their lives, their fortune, and their sacred honor. They had something worth fighting for, living for, and, if necessary, dying for. The legislation that we deal with, we're going to probably deal with 300, 400, 500, 600 bills this year. A couple hundred will pass. How many are worth fighting for and dying for? Those are the ones that are important. It's nice to debate what the state dessert is or fish. It really is. Or where we ought to put up a sign or five more miles of state highway, but is it going to make a difference? Is it going to make a difference?

We say success is being all you can be. Why isn't success being all the people around you can be? Wouldn't that be just as good a measurement? Let's make success what all the people around you are, all around us.

We get 35 days this year. That's what we've got. We've got 35 days to do something. Honestly, friends, if I started over here with Representative Eccarius, and I went over here to Representative Bartling, went all through the place, every one of you, if I asked you what the real issues are sitting in my office or in the hallway or in your car, we'd have the same five or six for everybody. Let's address them. Let's go fight them. Let's do it. No. Nobody has a patent on ideas, but let's do it. Let's, when you go home, say that we haven't ignored these things once again. We haven't pandered to interests that we think will help us in the next election, because it doesn't pay off.

Sometimes when people are a minority, they've earned it. Sometimes, when a majority becomes a minority, they've earned it. Sometimes, when you win an election, you've earned it. And, sometimes, when you lose an election, you've earned it.

But I've never met many taxpayers that hold it against you for having an idea and fighting for something you believe in. They don't penalize you for that in South Dakota, and I'm proof of that. They don't penalize you for fighting for what you believe in. I'm aware more than any of you of the criticisms that are laid on me. "He fights too hard." "He never gives up." "It's his way or no way." No, it isn't. It's going to be some way, though. I'm a person that, honest to God, believes if you've got a problem, you can only talk about it so long. Then you've got to do something about it. You have to act.

Isn't it amazing how America acted after 911? That Congress got things done. Now it's all falling apart again, but they got things done because they had to. That's the same boat that we're in. A person can make a difference.

I honestly took a poem that somebody sent me because it had such an impact on me. Forget the issue. I don't forget the issue, but you can. What it really tells me is one person who is dedicated and believes what he's doing not only can but will make a difference.

    A protest raged on the courthouse lawn,
    Round a makeshift stage, they charged on.
    Fifteen hundred or more, they say
    Had come to burn a flag that day.

    A boy held up the folded flag,
    Cursed it and called it a dirty rag.
    An old man pushed through the angry crowd
    With a rusty shotgun shouldered proud.

    His uniform jacket was old and tight.
    He had polished each button shiny and bright.
    He crossed the stage with a soldier's grace
    Until he and that boy stood face to face.

    Freedom of speech, the old man said,
    Is worth dying for. Good men are dead
    So you can stand on this courthouse lawn
    And talk us down from dusk to dawn.

    But before any flag gets burned today,
    This old man is going to have his say.
    My father died on a foreign shore
    In a war they said would end all wars.

    But Tommy and I wasn't even full-grown
    Before we fought in a war of our own.
    And Tommy died on Iwo Jima's beach
    In the shadow of a hill he couldn't quite reach.

    Where five good men raised this flag so high
    That the whole world could see it fly.
    I got this bum leg that I still drag
    Fighting for that same old flag.

    Now there's but one shot in this old gun,
    So now it's time to decide which one.
    Which one of you will follow our lead
    To stand and die for what you believe?

    For sure as there's a rising sun,
    You'll burn in hell before this flag burns, son.
    Now this riot never came to pass.
    The crowd got quiet with their can of gas.



    It got set aside as they walked away
    To talk about what they heard that day.
    And the boy who called it a dirty rag
    Handed the old soldier the folded flag.

    So the battle of the flag was won that day
    By a tired old soldier with a rusty gun
    Who, for one last time, had to show to some
    This flag may fade, yet these colors don't run.


My friends, this is the sixteenth time I have had the privilege of giving a State-of-the- State Address to you. It's the last time I'm going to have the privilege of giving a State-of-the- State Address to you.

Next year, it belongs to one of these other people, as it appropriately should, but I am telling you. Bill Janklow_God gave him the ability to make a difference. But that same God gave every one of you the identical ability to make a difference.

We've got problems in this state. We can't solve them all. But when you go home in 35 days, we ought to be able to look the public in the eye_and, more importantly, we ought to be able to look the mirror in the eye_and say there's not a problem that I believe_in my heart and in my head_there's not a single problem that I know exists that I didn't try and do something about if the government can fix it.

I've been in hospital wards where I can tell you, you can't fix all people's problems. We're all mortal and we all know it. But I'm also telling every one of you, my friends, every single one of you. We have a responsibility, not just me. You and I together, individually and in groups, we have a responsibility to make a difference for the future of South Dakota.

I've always loved that challenge. So do you. We've got 35 days to deal with the problems we know exist that we can do something about. Let's go to work.


Remember. Remember. Success is not measured by you and I being all we can be. Success for us will be measured by how much we make the people of South Dakota be all that they can be.

Thank you all.


     Sen. Koskan moved that the Senate do now adjourn, which motion prevailed and at 1:55 p.m. the Senate adjourned.

Patricia Adam, Secretary