P - Present
Roll Call
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Representative Bill Peterson, Chair
MOTION:
TO APPROVE THE MINUTES OF FRIDAY, FEBRUARY 15, 2002
E - Excused
A - Absent
P Brown (Richard)
P Duenwald
P Duniphan
P Eccarius
P Glenski
P Hanson (Gary)
P Jaspers
P Juhnke
P Michels
P Olson (Mel)
P Smidt
P Napoli, Vice-Chair
P Peterson (Bill), Chair
Moved by: Duniphan
Second by: Olson (Mel)
Action: Prevailed by voice vote.
SB 133: revise the distribution of revenue from the petroleum release compensation
and tank inspection fee.
Presented By: Representative Mike Jaspers, co-sponsor
Proponents: Ron Wheeler, Department of Transportation
Jim Keyes, lobbyist, Associated General Contractors of SD, Pierre
Jeff Fox, lobbyist, SD Ethanol Producers, Sioux Falls
John Silvernail, lobbyist, Lake Area Improvement Corporation, Madison
Ron Olinger, lobbyist, SD Corngrowers Association, Pierre
Ed Anderson, lobbyist, SD Rural Electric Association, Pierre
Mark Lounsbery, self, Revillo (handout 1)
Opponents: Steve Willard, lobbyist, SD Petroleum Council, Pierre
Dawna Leitzke, lobbyist, SD Petroleum and Propane Marketers, Pierre
Myron Rau, lobbyist, SD Trucking Association, Sioux Falls
Michelle Schipper, lobbyist, K&J Trucking Association, Sioux Falls
Denton Haber, Sioux Falls Truck and Trade, Sioux Falls (handout 2)
Joy Petersen, SD Trucking Association, Huron
Larry Anderson, A&A Express, Brandon
John Mewes, J&T Trucking, Highmore
Vernon Petersen, SD Trucking Association, Huron
Ted Bultsma, Bultsma Truck Line, Platte
Stan Anders, Anders Trucking, Inc., Union Center
Alton Palmer, Alton Palmer Trucking, Rapid City
Perry Baloun, Baloun Trucking, Highmore
Ken Hoffman, Ken Hoffman Trucking, Highmore
` Alan Schlechte, Triple S Trucking, Polo
Lloyd Bultsma, Lloyd Bultsma Trucking, Sioux Falls
Clifford W. Tjaden, Tote Inc, Salem
"
Section 1. That
§
34A-13-20
be amended to read as follows:
34A-13-20.
A petroleum release compensation and tank inspection fee is imposed upon any
petroleum products upon which the fuel excise tax is imposed by
§
§
10-47B-5 to 10-47B-10,
inclusive, and 10-47B-13. None of the exemptions from fuel excise tax allowed in
§
10-47B-19 shall
apply to this fee. The parties required to pay the fuel excise tax under the provisions of
§
§
10-47B-21
to 10-47B-26, inclusive, and 10-47B-29 and 10-47B-31 are liable for payment of the petroleum
release and tank inspection fee. In cases where the fuel is exempt from the fuel excise tax under the
provisions of subdivisions 10-47B-19(1), (3), and (5), the supplier shall pay the fee. Responsibility
for payment of the fee ceases if the petroleum product is sold and delivered by a licensed exporter
outside of the state. The amount of the fee imposed is twenty dollars per one thousand gallons of
petroleum.
Beginning on January 1, 2003, the fee is ten dollars per one thousand gallons of
petroleum.
Section 3. That
§
34A-13-20
be amended to read as follows:
34A-13-20.
A petroleum release compensation and tank inspection fee is imposed upon any
petroleum products upon which the fuel excise tax is imposed by
§
§
10-47B-5 to 10-47B-10,
inclusive, and 10-47B-13. None of the exemptions from fuel excise tax allowed in
§
10-47B-19 shall
apply to this fee. The parties required to pay the fuel excise tax under the provisions of
§
§
10-47B-21
to 10-47B-26, inclusive, and 10-47B-29 and 10-47B-31 are liable for payment of the petroleum
release and tank inspection fee. In cases where the fuel is exempt from the fuel excise tax under the
provisions of subdivisions 10-47B-19(1), (3), and (5), the supplier shall pay the fee. Responsibility
for payment of the fee ceases if the petroleum product is sold and delivered by a licensed exporter
outside of the state. The amount of the fee imposed is twenty dollars per one thousand gallons of
petroleum.
Beginning on January 1, 2003, the fee is ten dollars per one thousand gallons of
petroleum.
Section 5. That
§
5-27-5
be amended to read as follows:
5-27-5.
During fiscal year 1999, the Bureau of Finance and Management shall transfer each
month three and six-tenths percent of the monthly state capital construction fund revenues from the
state capital construction fund to the public and special transportation fund.
Beginning in fiscal year
2000 to December 31, 2002, inclusive, the Bureau of Finance and Management shall transfer each
month three and one-half percent of the monthly state capital construction fund revenues from the
state capital construction fund to the public and special transportation fund. Beginning on January 1,
2003, the Bureau of Finance and Management shall transfer each month two and six-tenths percent
of the monthly state capital construction fund revenues from the state capital construction fund to
the
public and special transportation
state highway
fund.
Section 6. That
§
10-47B-4
be amended to read as follows:
10-47B-4.
The fuel excise tax rates for the tax imposed by this chapter are as follows:
Section 8. That
§
10-47B-162
be amended to read as follows:
10-47B-162.
A production incentive payment of twenty cents per gallon is available to ethanol
producers for ethyl alcohol which is fully distilled and produced in South Dakota. To be eligible for
this payment, the ethyl alcohol shall be denatured and subsequently blended with gasoline to create
ethanol blend. The ethyl alcohol shall be ninety-nine percent pure and shall be distilled from cereal
grains. Annual production incentive payments for any facility may not exceed one million dollars.
No facility may receive any production incentive payments in an amount greater than ten million
dollars. The cumulative annual production incentive payments made under this section may not
exceed
an amount which has been appropriated by the Legislature for this purpose and has been
deposited into the ethanol fuel fund in the state treasury
seven million dollars
. Payments from the
ethanol fuel fund shall be made on a first in time basis until the fiscal year appropriation is reached.
During the month when the appropriation limit is to be reached, all claims received by month end
shall be reimbursed proportionately on a pro-rata basis for each gallon claimed.
Section 9. That
§
10-47B-164
be amended to read as follows:
10-47B-164.
Any money in the ethanol fuel fund is continuously appropriated for purposes of
providing ethanol production payments to qualified ethanol producers. The department may receive
and approve ethanol production incentive payment claims and authorize the issuance of payment
warrants to licensed ethanol producer claimants based on claims presented by the licensees. At the
end of each fiscal year, any unobligated cash in excess of one hundred thousand dollars in the ethanol
fuel fund shall be transferred to the state
capital construction
highway
fund.
Section 10. 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: Jaspers
Second by: Duniphan
Action: Prevailed by voice vote.
MOTION:
DO PASS SB 133 AS AMENDED
Moved by: Jaspers
Second by: Hanson (Gary)
Action: Prevailed by roll call vote.(11-2-0-0)
Voting Yes: Brown (Richard), Duenwald, Duniphan, Glenski, Hanson (Gary), Jaspers, Juhnke,
Michels, Olson (Mel), Smidt, Peterson (Bill)
Voting No: Eccarius, Napoli
MOTION:
TO AMEND TITLE OF SB 133
Moved by: Michels
Clara Shelbourn
Second by: Duniphan
Action: Prevailed by voice vote.
MOTION:
ADJOURN
Moved by: Duniphan
Second by: Olson (Mel)
Action: Prevailed by voice vote.
Committee Secretary
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