77th Legislative Session _ 2002

Committee: Senate State Affairs
Friday, January 25, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Brosz
P    Daugaard
P    Hutmacher
P    Munson
P    Sutton (Dan)
P    Symens
E    Whiting
P    Brown (Arnold), Vice-Chair
P    Everist, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Barbara Everist, Chair

MOTION:     TO APPROVE THE MINUTES OF WEDNESDAY, JANUARY 23, 2002

Moved by:    Brown (Arnold)
Second by:    Brosz
Action:    Prevailed by voice vote.

MOTION:     CONFIRM APPOINTMENT OF R. JAMES CLIFFT, MINNEHAHA COUNTY, SIOUX FALLS, SOUTH DAKOTA, TO THE ASSISTANT ADJUTANT GENERAL, AIR

Moved by:    Brown (Arnold)
Second by:    Hutmacher
Action:    Prevailed by roll call vote.(8-0-1-0)

Voting Yes:    Brosz, Daugaard, Hutmacher, Munson, Sutton (Dan), Symens, Brown (Arnold), Everist



Excused:    Whiting

         SB 40: allocate expenses of the investment council to certain trust funds and to provide provisions for the investment and the distribution of certain trust funds.

MOTION:     AMEND SB 40

40ob
    
     Delete previously adopted amendment 40oa thus returning the bill to its printed form.

     On page 2, after line 18 of the printed bill, insert:

"      Section 2. That § 4-5-26 be amended to read as follows:

     4-5-26.   Money made available for investment may be invested in the following classes of securities and investments and, except as provided by §   3-12-117, chapter 3-13, the South Dakota Cement Plant retirement fund, and the permanent trust fund containing the net proceeds from the sale of state cement enterprises , the health care trust fund as provided in S.D. Const., Art. XII, § 5, and the education enhancement trust fund as provided in S.D., Art. XII, § 6 , not otherwise:

             (1)      Direct and indirect obligations of the United States government;
             (2)      Agencies and instrumentalities of the United States government;
             (3)      Direct obligations of the State of South Dakota and any of its political subdivisions;
             (4)      Obligations consisting of notes, bonds, debentures, and certificates which are direct obligations of a solvent corporation or trust existing under the laws of the United States or any state thereof, if such investments are rated in the four highest classifications established by at least two standard rating services; or
             (5)      Savings accounts, share accounts, certificates of deposit of banks, savings and loan associations, building and loan associations, and bankers' acceptances;
             (6)      In addition to the investments authorized by subdivisions (1) to (5) of this section, inclusive, the investment council may also allocate a sum certain of state public funds for investment in the accounts and certificates of South Dakota banks and associations. This sum shall initially be offered to South Dakota banks and associations, and if not initially fully subscribed, the investment officer shall immediately reoffer the unsubscribed sum to other qualified public depositories defined by subdivision 4-6A-1(7).     

     Section 3. Pursuant to S.D. Const., Art. XII, §  5, the state investment officer shall determine the market value of the health care trust fund as of June thirtieth each year less the investment expenses transferred pursuant to §  4-5-30. As soon as practicable after July first the state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all

contributions to the fund. Beginning with the distribution in fiscal year 2006, a four year average market value shall be used to calculate the distribution. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the health care trust fund to the state general fund.

    Section 4. Pursuant to S.D. Const., Art. XII, §  6, the state investment officer shall determine the market value of the education enhancement trust fund as of June thirtieth each year less the investment expenses transferred pursuant to §  4-5-30. As soon as practicable after July first the state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2006, a four year average market value shall be used to calculate the distribution. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the education enhancement trust fund to the state general fund. ".


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

MOTION:     DO PASS SB 40 AS AMENDED

Moved by:    Daugaard
Second by:    Brown (Arnold)
Action:    Prevailed by roll call vote.(8-0-1-0)

Voting Yes:    Brosz, Daugaard, Hutmacher, Munson, Sutton (Dan), Symens, Brown (Arnold), Everist

Excused:    Whiting

MOTION:     TO AMEND TITLE OF SB 40

40ota
     On page 1, line 2 of the printed bill, after " funds " insert "and to provide provisions for the investment and the distribution of certain trust funds".

Moved by:    Symens
Second by:    Hutmacher
Action:    Prevailed by voice vote.


         SB 134: revise the authority of the South Dakota Student Loan Corporation regarding private activity bonds.

Presented By:    Senator Elmer Diedtrich
Proponents:    Harvey Jewett
        Todd Meierhenry

MOTION:     DO PASS SB 134

Moved by:    Brown (Arnold)
Second by:    Brosz
Action:    Prevailed by roll call vote.(8-0-1-0)

Voting Yes:    Brosz, Daugaard, Hutmacher, Munson, Sutton (Dan), Symens, Brown (Arnold), Everist

Excused:    Whiting

         SB 100: revise the formula for reducing state aid to education due to an excessive general fund balance.

Presented By:    Senator Dennert(document #1)
Proponents:    Representative Elliott
        Gene Enck, Associated School Boards of South Dakota
        Penelope Douglas, South Dakota Coalition of Small Schools
Opponents:    Ray Christensen, Secretary of the Department of Education and Cultural Affairs

MOTION:     AMEND SB 100

100da
     On page 4, line 1 of the printed bill, after " received " insert " during the past seven fiscal years ".

Moved by:    Symens
Second by:    Hutmacher
Action:    Failed by roll call vote.(3-5-1-0)

Voting Yes:    Hutmacher, Sutton (Dan), Symens

Voting No:    Brosz, Daugaard, Munson, Brown (Arnold), Everist

Excused:    Whiting



MOTION:     DO PASS SB 100

Moved by:    Hutmacher
Second by:    Sutton (Dan)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 100 TO THE 36TH LEGISLATIVE DAY

Moved by:    Brosz
Second by:    Daugaard
Action:    Prevailed by roll call vote.(5-3-1-0)

Voting Yes:    Brosz, Daugaard, Munson, Brown (Arnold), Everist

Voting No:    Hutmacher, Sutton (Dan), Symens

Excused:    Whiting

The gavel was passed to Senator Arnold Brown, Vice-Chair.

         HCR 1001: Requesting the United States Congress not to attempt to repeal or rescind any of the tax relief legislation passed by the United States Congress in May 2001.

Presented By:    Senator Everist

MOTION:     THAT HCR 1001 BE CONCURRED IN

Moved by:    Daugaard
Action:    Died for a lack of a second

MOTION:     AMEND HCR 1001

c1001oc
     On page 2, line 3 of the House engrossed resolution, after " implemented " insert ", unless the implementation of the tax cuts would interfere with the efforts of the United States to combat terrorism or would imperil the lives of our military service men and women".

Moved by:    Hutmacher
Second by:    Symens
Action:    Prevailed by voice vote.


MOTION:     THAT HCR 1001 BE CONCURRED IN AS AMENDED

Moved by:    Daugaard
Second by:    Munson
Action:    Prevailed by roll call vote.(8-0-1-0)

Voting Yes:    Brosz, Daugaard, Hutmacher, Munson, Sutton (Dan), Symens, Brown (Arnold), Everist

Excused:    Whiting

Chair Everist resumed the gavel.

MOTION:     PLACE HCR 1001 ON CONSENT CALENDAR

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

MOTION:     ADJOURN

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

Alice Christensen

____________________________

Committee Secretary
Barbara Everist, Chair


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