Senate State Affairs Minutes 02/06/2002 7:45 AM

77^th Legislative Session _ 2002

Committee: Senate State Affairs

Wednesday, February 06, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Brosz
P    Daugaard
P    Hutmacher
P    Munson
P    Sutton (Dan)
P    Symens
P    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 MONDAY, FEBRUARY 4, 2002

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

         HB 1005: codify legislation enacted in 2001.

Presented By:    Doug Decker, Legislative Research Council Code Commission

MOTION:     DO PASS HB 1005

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

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

Excused:    Hutmacher

MOTION:     PLACE HB 1005 ON CONSENT CALENDAR

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

         SB 156: provide for the revision of the South Dakota Family Farm Act of 1974 to conform with a proposed amendment to the South Dakota Constitution regulating corporate farming in South Dakota.

Presented By:    previously heard
Opponents:    Representative Kloucek(document #1)

MOTION:     DO PASS SB 156 AS AMENDED

Moved by:    Symens
Second by:    Brown (Arnold)
Action:    Prevailed by roll call vote.(9-0-0-0)

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

         SB 7: provide for the leasing of certain public lands acquired by exchange.

Presented By:    Curt Johnson, Commissioner of Schools and Public Lands
Opponents:    Larry Gabriel, Secretary of the Department of Agriculture
        Senator Bogue

MOTION:     AMEND SB 7

On page 2, line 1 of the Senate State Affairs Committee engrossed bill, after " parcels " insert " , by the method that would generate the most income for the state, ".

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

MOTION: AMEND SB 7

On page 2, line 2 of the Senate State Affairs Committee engrossed bill, after " Dakota " insert " unless the commissioner, with the approval of the Governor, for good cause deems it to be in the best interests of the state that the unit or parcels be leased to a unit of government for less than the highest bid ".

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

MOTION:     DO PASS SB 7 AS AMENDED

Moved by:    Hutmacher
Second by:    Daugaard
Action:    Prevailed by roll call vote.(9-0-0-0)

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

         HB 1001: ratify the Uniform Sales and Use Tax Administration Act and to implement the uniform and simplified features proposed by the Streamlined Sales Tax Project.

Presented By:    Senator McCracken
Proponents:    Representative Richard Brown
        Gary Viken, Secretary of the Department of Revenue
        Scott Peterson, Department of Revenue
        Jerry Wheeler, South Dakota Retailers Association(document #2, #6)
        Yvonne Taylor, South Dakota Municipal League
        Bob Riter, Farm Equipment Association of Minnesota and South Dakota
        David Owen, South Dakota Chamber of Commerce

MOTION:     AMEND HB 1001

On page 16, line 21 of the House engrossed bill, after " receipt. " insert "The rules promulgated pursuant to this section may provide an alternative method of sourcing telecommunication services.".

On page 22 , line 12, delete " July 1, 2002 " and insert " December 31, 2005 ".

On page 23 , line 7, overstrike " The " and insert " For bonds issued prior to January 1, 2006, the ".

On page 26 , delete lines 2 to 5 , inclusive, and insert:

" Section 45. The Legislature hereby finds that the amendments to chapter 10-52 contained in this Act shall result in a broader and more uniform tax base for the sales tax levied by municipalities under this chapter, and that, absent a reduction in the current tax levy of a municipality, it is anticipated that total sales tax revenues of a municipality may increase as a result of these amendments. However, so long as a municipality has any bonds or other obligations outstanding which are secured directly or indirectly by the pledge or collection and application of sales taxes levied pursuant to chapter 10-52 as in effect immediately prior to January 1, 2006, no municipality may reduce its tax levy under chapter 10-52 to a rate which, in the exercise of the sound discretion of the governing body, would be expected to produce less total revenue than was collected in the immediately preceding year.

Section 46. Sections 18, 19, 20, 21, 30, 32, 33, 34, 35, 36, 41, 42, and 44 are effective on January 1, 2006.

Section 47. It is the intent of the Legislature that the provisions of this Act be revenue neutral to all levels of government. Any municipality that has reviewed its sales tax ordinance as required by section 37 of this Act shall determine and enact a rate of taxation that, in the exercise of the sound discretion of the governing body, would be expected to produce no more total revenue than was collected in the immediately preceding year. However, nothing herein shall prohibit any increase in revenues that are projected to occur because of economic growth.

Section 48. Section 47 of this Act is repealed on January 1, 2007.

Section 49. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.".

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

MOTION:     AMEND HB 1001

On page 2, line 20 of the House engrossed bill, delete " is " and insert "and two legislators are".

On page 2 , line 21, after " agreement. " insert "The Executive Board of the Legislative Research Council shall appoint one senator and one representative to represent this state.".

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

MOTION:     AMEND HB 1001

In the previously adopted amendment (1001oa), in the first sentence of Section 47, delete "It", and insert "Except as may be required by section 45 of this Act, it".

Moved by:    Daugaard
Second by:    Brown (Arnold)
Action:    Was not acted on.

The Chair deferred HB 1001 until Friday, February 8, 2002.

         SB 67: reduce the sales and use tax on food.

Presented By:    Senator Staggers(document #3)
Proponents:    Hazel Bonner, Oglala Lakota College(document #4)
        Cathy Brechtelsbauer, Bread for the World and South Dakota Christian Coalition(document #5)
        Carol Robertson
        Gary Loudner
        Travis Benson, Sioux Falls Catholic Diocese
        Representative McCoy
        Geraldine King, Pierre Ministerial Association
Opponents:    Gary Viken, Secretary of the Department of Revenue

MOTION:     AMEND SB 67

On the printed bill, delete everything after the enacting clause and insert:

" Section 1. That chapter 10-45 be amended by adding thereto a NEW SECTION to read as follows:

There are hereby specifically exempted from the tax imposed by this chapter the gross receipts resulting from the sale of food, as defined by the Food Stamp Act of 1977 (P.L. 95-113), codified at 7 U.S.C. § 202(g), as amended through January 1, 2002.

Section 2. That chapter 10-46 be amended by adding thereto a NEW SECTION to read as follows:

There are hereby exempted from the tax imposed by this chapter the gross receipts resulting from the sale of food, as defined by the Food Stamp Act of 1977 (P.L. 95-113), codified at 7 U.S.C. § 2012(g), as amended through January 1, 2002.

Section 3. Sections 1 and 2 of this Act are effective only if Congress passes legislation authorizing states to collect sales and use taxes from retailers pursuant to the streamlined sales tax project."

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

MOTION:     DO PASS SB 67 AS AMENDED

Moved by:    Hutmacher
Second by:    Symens
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER SB 67 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Brown (Arnold)
Second by:    Daugaard
Action:    Prevailed by roll call vote.(6-2-1-0)

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

Voting No:    Hutmacher, Symens

Excused:    Sutton (Dan)

MOTION:     ADJOURN

Moved by:    Brosz
Second by:    Whiting

Action: Prevailed by voice vote.

Alice Christensen

____________________________

Committee Secretary

Barbara Everist, Chair

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