The prayer was offered by the Chaplain, Pastor Gale Shafer, followed by the Pledge of Allegiance led by House page Amber Potas.

     Roll Call: All members present except Rep. Tom Hansen who was excused.

     The Committee on Legislative Procedure respectfully reports that the Chief Clerk of the House has had under consideration the House Journal of the sixteenth day.

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

     And we hereby move the adoption of the report.

    I have the honor to return herewith HB 1011, 1014, 1017, and 1106 which have passed the Senate without change.

     Rep. Rhoden moved that HCR 1012 as found on page 340 of the House Journal be adopted.

     Rep. Duniphan moved that HCR 1013 as found on page 341 of the House Journal be adopted.

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

    Rep. Bill Peterson moved the previous question.

    Which motion prevailed.

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

     Excused:
Derby; Hansen (Tom); Hundstad; Madsen; Pitts

     Absent:
Abdallah; Rhoden; Wick

     So the motion having received an affirmative vote of a majority of the members-elect, the Speaker declared the motion carried and HB 1171 was so placed.

"

     Nays:
Abdallah; Bradford; Broderick; Brown (Jarvis); Brown (Richard); Burg; Duniphan; Flowers; Gillespie; Heineman; Holbeck; Hundstad; Juhnke; Konold; Michels; Nesselhuf; Olson (Mel); Richter; Sigdestad; Smidt; Solum; Van Norman

     Excused:
Derby; Hansen (Tom); Jaspers; Peterson (Bill); Pitts

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

     Was read the second time.

     Excused:
Adelstein; Clark; Hansen (Tom); Pitts

     Absent:
Derby; Nesselhuf

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

     Was read the second time.

"

subdivision, a qualified person is either a natural person or an entity that meets the requirements of subdivision (1) of this section;".

Also MR. SPEAKER:

    The Committee on Agriculture and Natural Resources respectfully reports that it has had under consideration HJR 1002 which was deferred to the 36^th Legislative Day.

"      Section 1. Terms used in this Act mean:

documentation, instruments or arrangements entered into or to be entered into in connection therewith or ancillary thereto including, without limitation, support and operating agreements, service agreements, indemnity agreements, participation agreements, loan agreements or payment undertaking agreements;

     Section 3. Following the expiration of the initial appointment, all subsequent appointments to the authority shall be made for a four-year term. Each member's term of office shall expire on the appropriate third Monday in January, but he or she shall continue to hold office until his or her successor is appointed and qualified. Any vacancy in the authority shall be filled by appointment for only the balance of the unexpired term. Four members of the authority shall constitute a quorum.

     Section 4. Each member shall, before entering upon the duties of his or her office, take and subscribe the constitutional oath of office and give bond in the penal sum of twenty-five thousand dollars conditioned upon the faithful performance of his duties. The oath and bond shall be filed in the Office of the Secretary of State.

     Section 5. No member of such authority shall receive any compensation for services rendered under this chapter. However, members shall be reimbursed for necessary expenses incurred in connection with duties and powers prescribed by this Act.

    No such corporation shall not be required to file any reports with the state other than those specified herein.

     Section 7. The authority and any corporation formed by the authority may delegate by resolution any duties or obligations to the Department of Environment and Natural Resources.

     Section 8. The purposes of the authority and any corporation formed by the authority are:

     Section 10. The state, the authority and each corporation formed by the authority shall have the power and authority:

instrumentality of the United States for any purpose consistent with the provisions of this chapter;

     Section 12. No obligation of any corporation formed by the authority under any lease, support and operating agreement or other contract or agreement may be or become a lien, charge or liability against the State of South Dakota or the authority within the meaning of the Constitution or statutes of South Dakota. No instrument of conveyance, lease or other contract or other agreement entered into by the state, the authority or any corporation formed by the authority, relating to municipal facilities shall be a debt of the state or the authority within the meaning of the constitution or statutes of the State of South Dakota, and this Act shall not be construed as a guarantee by the state or the authority of the obligations of the corporation or any other person. Nothing in this chapter shall be construed to authorize the authority, any

corporation formed by the authority, or any department, board, commission, or other agency to create an obligation of the State of South Dakota within the meaning of the constitution or statues of South Dakota.

     Section 13. The State of South Dakota pledges to and agrees with any party to any sale, lease, or other contract, agreement, instrument or other arrangement created under this Act that the state will not limit or alter the rights and powers vested in the authority, any corporation formed by the authority or other public entity by this Act so as to impair the terms of any such contract made by the state, the authority, any such corporation or other public entity with such party or in any way impair the rights and remedies of such party until such contract is satisfied. The authority, any such corporation and any public entity is each authorized to include their pledges and agreements of the state in any such contract created under this Act.

     Section 14. The authority and any corporation formed by the authority are hereby declared to be performing a public function on behalf of the state and to be a public instrumentality of the state. The income of the authority and any corporation, and all municipal facilities and any other property at any time owned by the authority or any corporation, and the acquisition, sale, transfer, lease or purchase of municipal facilities by or from the state, the authority or any corporation or any public entity, and the pledge of any right, title or interest in any municipal facilities by any person, shall be exempt from all taxation in the State of South Dakota. Each corporation shall be exempt from all filing, reporting and similar requirements otherwise applicable to nonprofit and other corporations.

     Section 15. To accomplish the purposes or projects of the kind listed in this Act, the authority or any corporation may adopt all necessary bylaws, rules, and regulations for the conduct of the business and affairs of the authority, and for the management and use of municipal facilities acquired under the powers granted by this Act.

     Section 16. Any public entity and any department, board, commission, agency, or officer of this state may sell, lease or otherwise transfer jurisdiction of or title to or any interest in any property under its or his control to the authority or any corporation formed by the authority hereunder.

     Section 17. The state, the authority and any corporation formed by the authority may each acquire by purchase, condemnation (including the power of condemnation in accordance with chapter 21-35), lease, gift or otherwise dispose of such utility property without any further authorization from the Legislature. In addition, if the Legislature by law declares it to be in the public interest, the authority and any corporation formed by the authority may each acquire by purchase, condemnation (including the power of condemnation in accordance with chapter 21- 35), lease, gift or otherwise, construct, complete, remodel, maintain and equip such other or further municipal facilities subject to any limit as to appraised value or such other or further terms and conditions as shall be so specified by the Legislature in such declaration. The authority shall obtain and consider when determining the value of any municipal facilities to be leased, sold or acquired, at least one independent appraisal.

     Section 18. Any lease authorized hereby by, to or from the state, the authority, any corporation formed by the authority or any other public entity may be:

     Section 21. Any lease obligation of the state, the authority or any corporation formed by the authority pursuant to this Act shall be payable solely and only from:

     Section 24. The state may acquire from any public entity or other person by purchase, lease or any other form of contract, agreement, instrument or conveyance all or any portion of municipal facilities and may own, operate, use or otherwise contract with any public entity or other person to own, operate, use or contract for use or operation of municipal facilities, and the state may dispose of all or any portion of municipal facilities by sale, lease or any other form of contract, instrument or conveyance to any public entity or other person, subject only to any applicable terms and conditions set forth herein.

     Section 25. The Board of Water and Natural Resources or the South Dakota Conservancy District may become a party to a lease authorized by this Act whereby the Board of Water and Natural Resources or South Dakota Conservancy District loans in an initial amount of not greater than ninety percent of the appraised value of utility property leased to, by or from the state, authority, corporation or other public entity pursuant to this Act. The Board of Water and Natural Resources or South Dakota Conservancy District may also be lender, lessor and/or lessee in connection with any transaction contemplated by this Act, provide a deposit agreement, payment undertaking or similar contract to any party to a lease or lease transaction, and, in the event it is lessee, it may sublease such property.

     Section 26. Notwithstanding any other provisions of law, all funds received by the authority and any corporation formed by the authority shall be set forth in an informational budget as described in §  4-7-7.2 and be annually reviewed by the Legislature.

     Section 27. The authority shall be audited annually in accordance with chapter 4-11 and any such audit shall include any corporation formed by the authority.

     Section 29. No member, officer, agent, or employee of the state, the authority or any corporation formed by the authority, nor any other person who executes a lease, shall be liable personally by reason of the issuance thereof.

     Section 30. The governing body of a public entity may by ordinance or resolution exercise all the powers conferred on (a) the South Dakota Building Authority and the Governor pursuant to § §  5-12-15, 5-12-19, and 5-12-42 to 5-12-45, inclusive, and (b) the authority or any corporation formed by the authority under this Act, with respect to the acquisition, lease, ownership, operation, sale and leaseback of utility property or other municipal facilities.

     Section 31. All municipal facilities owned, leased, acquired, sold or operated by or for the benefit of the state, the authority, any corporation formed by the authority or any other public entity pursuant to a lease having a term (including, for such purpose, all renewal options) in excess of three years or a lease-purchase or installment purchase contract, or pursuant to an operating contract described in section 30 of this Act shall constitute a separate class of property which is exempt from all taxation.

     Section 32. Any public entity which enters into a lease or other transaction described in this Act may also enter into one or more support and operating agreements, participation agreements, indemnity agreements, payment undertaking agreements and such other contracts

or arrangements related thereto or ancillary therewith with the corporation, authority, state or any other public entity or person if the governing board of such public entity determines such agreements or arrangements are reasonably necessary to induce lenders or investors to participate therein, and such agreements or arrangements may include, without limitation, indemnities for losses or claims of any nature or cause, agreements to charge, assess, levy or collect fees and charges for the use of municipal facilities, an agreement to subsidize any such fees or charges and the pledge of the full faith and credit of the public entity to pay any obligations of the public entity under or with respect to any such lease, agreement or other arrangement.

     Section 33. Under no circumstances shall the authority, any corporation formed by the authority, the state, either in its own name or acting through the Department of Environment and Natural Resources, or any person which is a lender for or investor in, or the lessor, lessee or nominal title owner with respect to, the utility property have any liability with respect to any violation of any environmental law or regulation, including as a result of any release of any hazardous substance or any other act or omission in connection with the ownership or operation of any utility property which is the subject of any lease or other agreement or arrangement authorized by this Act unless, in the case of a lessor or lessee, such person actually operates the utility property with its own employees. Nor shall the authority, any corporation formed by the authority, the state, either in its own name or acting through the Department of Environment and Natural Resources, or any person which is a lender for or invested in, or the lessor, lessee or nominal title owner with respect to, the utility property be deemed to be a responsible party or an owner or operator of any utility property within the meaning of any environmental law or regulation, it being the intention of the Legislature that all liability for environmental laws and compliance therewith and with respect to and in connection with any utility property which is the subject of any lease, contract or other arrangement authorized by this Act shall be retained by the municipality, district or other local public entity whose residents and businesses receive services or other benefits from the utility property which is the subject of any such lease, contract or other arrangement.

     Section 34. The powers conferred by this Act are in addition to all other powers conferred upon the state, the authority, any corporation and any public entity, and their exercise shall be subject only to such restrictions as may be provided by the South Dakota Constitution and are not subject to any restriction or procedural requirements related to the acquisition, leasing, financing, sale, use, operation or encumbering of municipal facilities prescribed by any other law or charged, including, without limitation, any public procurement or bidding requirements.

     Section 35. If any clause or other portion of this Act shall be held invalid, that decision shall not affect the validity of the remaining portions of this Act. It is hereby declared that all such remaining portions of this Act are severable, and that the Legislature would have enacted such remaining portions if the portions that may be so held to be invalid had not been included in this chapter."

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HJR 1010 and returns the same with the recommendation that said bill be amended as follows:

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1228 and tabled the same.

Also MR. SPEAKER:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1251 which was deferred to the 36^th Legislative Day.

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB 1082 and 1225 and tabled the same.

Also MR. SPEAKER:

    The Committee on Judiciary respectfully reports that it has had under consideration HB 1158, 1193, and 1262 which were deferred to the 36^th Legislative Day.

    The Committee on Health and Human Services respectfully reports that it has had under consideration HB 1243 which was deferred to the 36^th Legislative Day.

    The Committee on Education respectfully reports that it has had under consideration HB 1149 and returns the same with the recommendation that said bill do pass and be placed on the Consent Calendar.

    The Committee on Education respectfully reports that it has had under consideration HB 1085 and returns the same with the recommendation that said bill be amended as follows:

"      Section 1. The Department of Education and Cultural Affairs shall establish a master teacher program. The South Dakota master teacher program shall reward qualified teachers in qualified school districts by means of a yearly bonus of not more than six thousand dollars per year.

     Section 2. The funds for the South Dakota master teacher program shall be allocated to each qualified school district according to its relative portion of the total average daily membership as defined in §  13-13-10.1. Any qualified school district may access a portion of the funds for the South Dakota master teacher program if the school district implements a plan to reward teachers who demonstrate excellence and mastery in their profession. All moneys allocated for school districts that are not qualified school districts, shall be redistributed to the qualified school districts on an average daily membership basis.

     Section 3. If a qualified school identifies a teacher who has demonstrated excellence and mastery, the qualified school district shall provide a written recommendation and substantiation, along with the specific amount of the bonus to be paid, to the Department of Education and Cultural Affairs after March first and before April fifteenth. The qualified school district is limited to requesting bonuses in an amount not to exceed the amount allocated for such school district.

     Section 4. For purposes of this Act, a master teacher must comply with the plan developed by the qualified school district and meet the following criteria:

Also MR. SPEAKER:

    The Committee on Education respectfully reports that it has had under consideration HB 1144 and tabled the same.

Also MR. SPEAKER:

    The Committee on Education respectfully reports that it has had under consideration HB 1206, 1208, and 1290 which were deferred to the 36^th Legislative Day.

    The Committee on Education respectfully reports that it has had under consideration HB 1155 and returns the same with the recommendation that said bill do not pass.

    The Committee on Transportation respectfully reports that it has had under consideration HB 1273 and returns the same with the recommendation that said bill be amended as follows:

"      Section 12. That chapter 32-30 be amended by adding thereto a NEW SECTION to read as follows:

    The Committee on Transportation respectfully reports that it has had under consideration HB 1292 and tabled the same.

Also MR. SPEAKER:

    The Committee on Transportation respectfully reports that it has had under consideration HB 1230 and 1231 which were deferred to the 36^th Legislative Day.

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared HB 1011, 1014, 1017, and 1106 and finds the same correctly enrolled.

     And signed the same in the presence of the House.