JOURNAL OF THE HOUSE

EIGHTY-NINTH SESSION

SIXTEENTH DAY

STATE OF SOUTH DAKOTA
House of Representatives, Pierre
Friday, February 7, 2014

The House convened at 1:00 p.m., pursuant to adjournment, the Speaker presiding.

The prayer was offered by the Chaplain, Pastor David Hussey, followed by the Pledge of Allegiance led by House page Zachary Policky.

Roll Call: All members present except Reps. Carson, Feickert, Magstadt, Munsterman, Schrempp and Tulson who were excused.

APPROVAL OF THE JOURNAL

MR. SPEAKER:

The Committee on Legislative Procedure respectfully reports that the Chief Clerk of the House has had under consideration the House Journal of the fifteenth 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,

Brian G. Gosch, Chair

Which motion prevailed.

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

The Committee on Education respectfully reports that it has had under consideration SB 63 and returns the same with the recommendation that said bill be amended as follows:

63sb

On page 3, line 11, of the Senate engrossed bill, after "." insert "The list of information in subdivisions (1) to (9), inclusive, is not an exclusive list. The secretary of the Department of Education may add to the list of information in subdivisions (1) to (9), inclusive, other data, facts, or information that is of a similar nature that a student may not be required to disclose.".

And that as so amended said bill do pass.

Also MR. SPEAKER:

The Committee on Education respectfully reports that it has had under consideration HB 1126 and returns the same with the recommendation that said bill be amended as follows:

1126ta

On page 1, line 8, of the printed bill, delete "may" and insert "shall".

And that as so amended said bill do pass and be placed on the consent calendar.

Also MR. SPEAKER:

The Committee on Education respectfully reports that it has had under consideration HB 1002 which was tabled.

Respectfully submitted,
Jacqueline Sly, Chair

Also MR. SPEAKER:

The Committee on State Affairs respectfully reports that it has had under consideration HB 1136 and 1201 and returns the same with the recommendation that said bills do pass.

Also MR. SPEAKER:

The Committee on State Affairs respectfully reports that it has had under consideration HB 1101 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Also MR. SPEAKER:

The Committee on State Affairs respectfully reports that it has had under consideration HB 1200 and returns the same with the recommendation that said bill be amended as follows:

1200oa

On page 5, line 3, of the printed bill, delete everything after "~~10-43-10.2~~.".

On page 5, delete lines 4 to 7, inclusive, and insert:

" Section 4. That chapter 10-43 be amended by adding thereto a NEW SECTION to read as follows:

A deduction may be made for a carryforward of a net operating loss or capital loss. The deduction is limited to the seven tax years immediately following the tax year of the loss. Net income may not be less than zero prior to making the adjustments provided for in §§ 10-43-10.2 and 10-43-10.3 because of a deduction taken for losses not incurred during the tax year for which the return is being filed.

The provisions of this section only apply to net operating losses or capital losses incurred on or after January 1, 2015.".

And that as so amended said bill do pass.

Also MR. SPEAKER:

The Committee on State Affairs respectfully reports that it has had under consideration HJR 1004 and returns the same with the recommendation that said resolution be amended as follows:

j1004fa

On page 1 of the printed resolution, delete line 13.

On page 2, delete lines 1 to 7, inclusive, and insert:

" WHEREAS, this application is to be considered as covering the same subject matter as the presently outstanding balanced budget applications from other states, including, but not limited to,".

On page 2, line 21, delete "for the purpose of" and insert "limited to".

On page 2, line 22, delete everything after "Constitution" .

On page 2, delete lines 23 and 24, and insert:

"requiring that in the absence of a national emergency, the total of all federal appropriations made by Congress for any fiscal year may not exceed the total of all estimated federal revenues for that fiscal year, together with any related and appropriate fiscal restraints; and".

J1004fta

On page 1, line 1, of the printed resolution, delete everything after "call".

On page 1, line 2, delete everything before "for" and insert "an Article V convention of the states".

And that as so amended said resolution do pass.

Respectfully submitted,
David Lust, Chair

Also MR. SPEAKER:

The Committee on Appropriations respectfully reports that it has had under consideration SB 27, 31, and 32 and returns the same with the recommendation that said bills do pass.

Also MR. SPEAKER:

The Committee on Appropriations respectfully reports that it has had under consideration HB 1191 which was tabled.

Also MR. SPEAKER:

The Committee on Appropriations respectfully reports that it has had under consideration HB 1138, 1144, and 1174 which were deferred to the 41^st Legislative Day.

Respectfully submitted,
Fred W. Romkema, Chair

Also MR. SPEAKER:

The Committee on Commerce and Energy respectfully reports that it has had under consideration HB 1154 and returns the same with the recommendation that said bill do pass.

Also MR. SPEAKER:

The Committee on Commerce and Energy respectfully reports that it has had under consideration HB 1168 and returns the same with the recommendation that said bill be amended as follows:

1168sa

On page 2, line 9, of the printed bill, delete "current calendar year" and insert "prior twelve months".

And that as so amended said bill do pass.

Also MR. SPEAKER:

The Committee on Commerce and Energy respectfully reports that it has had under consideration HB 1160 which was deferred to the 41^st Legislative Day.

Respectfully submitted,
Roger D. Solum, Chair

Also MR. SPEAKER:

The Committee on Judiciary respectfully reports that it has had under consideration HB 1169 and returns the same with the recommendation that said bill do pass.

Also MR. SPEAKER:

The Committee on Judiciary respectfully reports that it has had under consideration HB 1199 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Also MR. SPEAKER:

The Committee on Judiciary respectfully reports that it has had under consideration HB 1125 and returns the same with the recommendation that said bill be amended as follows:

1125oa

On page 3, between lines 14 and 15 of the printed bill, insert:

" Section 9. That § 21-25-3 be repealed.

~~21-25-3. Judgment shall be entered as in other cases but without costs for any proceeding prior to trial.~~ ".

And that as so amended said bill do pass and be placed on the consent calendar.

Also MR. SPEAKER:

The Committee on Judiciary respectfully reports that it has had under consideration HB 1197 which was tabled.

Respectfully submitted,
Brian G. Gosch, Chair

MESSAGES FROM THE SENATE

MR. SPEAKER:

I have the honor to return herewith HB 1044, 1047, 1049, 1057, and 1070 which have passed the Senate without change.

Also MR. SPEAKER:

I have the honor to transmit herewith SB 68, 95, 103, and 113 which have passed the Senate and your favorable consideration is respectfully requested.

Also MR. SPEAKER:

I have the honor to transmit herewith SCR 1 which has been adopted by the Senate and your concurrence is respectfully requested.

Respectfully,
Jeannette Schipper, Secretary

MOTIONS AND RESOLUTIONS

HOUSE PAGE RESOLUTION 2 Introduced by: Representatives Anderson; Bartling; Bolin; Cammack; Campbell; Carson; Conzet; Craig; Cronin; Dryden; Duvall; Ecklund; Erickson; Feickert; Feinstein; Gibson; Gosch; Greenfield; Haggar (Don); Haggar (Jenna); Hajek; Hawks; Hawley; Heinemann, Heinert, Hickey; Hoffman; Hunhoff (Bernie); Johns; Kaiser; Killer; Kirschman; Kopp; Langer; Latterell; Lust; Magstadt; May; Mickelson; Munsterman; Nelson; Novstrup (David); Olson (Betty); Otten (Herman); Parsley; Peterson; Qualm; Rasmussen; Ring; Romkema; Rounds; Rozum; Russell; Schaefer; Schoenfish; Schrempp, Sly; Soli; Solum; Stalzer; Steele; Stevens; Tulson; Tyler; Verchio; Werner; Westra; Wick; Wink; Wismer.

A RESOLUTION, Expressing the appreciation and gratitude of the House of Representatives of the Eighty-ninth Legislature of the State of South Dakota to Samantha Beck, Jeffrey Benson, Alyson Hauck, Anna Hemenway, Kendyll Jones, Madeline Molseed, Sidney Neiman, Kanon Olson, Zachary Policky, Grant Russell, Ivy Sherard, Abbie Wieseler, Matthew Wynia.

WHEREAS, the above named served loyally as pages for the House of Representatives of the Eighty-ninth Legislative Session; and

WHEREAS, the members of the Eighty-ninth House of Representatives 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 House of Representatives of the Eighty-ninth 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.

Rep. Sly moved that House Page Resolution 2 be adopted.

Which motion prevailed and the resolution was adopted.

HCR 1013: A CONCURRENT RESOLUTION, Commemorating the 200^th anniversary of the War of 1812 and "The Star Spangled Banner", and recognizing the historical significance, heroic human endeavor, and sacrifices of members of the United States Army, Marine Corps, Navy, Revenue Marine Service, and state militias, during and since the War of 1812.

Rep. Nelson moved that HCR 1013 as found on page 308 of the House Journal be adopted.

The question being on Rep. Nelson's motion that HCR 1013 be adopted.

And the roll being called:

Yeas 64, Nays 0, Excused 6, Absent 0

Yeas:
Anderson; Bartling; Bolin; Cammack; Campbell; Conzet; Craig; Cronin; Dryden; Duvall; Ecklund; Erickson; Feinstein; Gibson; Greenfield; Haggar (Don); Haggar (Jenna); Hajek; Hawks; Hawley; Heinemann (Leslie); Heinert; Hickey; Hoffman; Hunhoff (Bernie); Johns; Kaiser; Killer; Kirschman; Kopp; Langer; Latterell; Lust; May; Mickelson; Nelson; Novstrup (David); Olson (Betty); Otten (Herman); Parsley; Peterson; Qualm; Rasmussen; Ring; Romkema; Rounds; Rozum; Russell; Schaefer; Schoenfish; Sly; Soli; Solum; Stalzer; Steele; Stevens; Tyler; Verchio; Werner; Westra; Wick; Wink; Wismer; Speaker Gosch

Excused:
Carson; Feickert; Magstadt; Munsterman; Schrempp; Tulson

So the motion having received an affirmative vote of a majority of the members-elect, the Speaker declared the motion carried and HCR 1013 was adopted.

Rep. Nelson moved that HCR 1014 be deferred to Tuesday, February 11, the 18^th legislative day.

Which motion prevailed.

Rep. Nelson moved that HCR 1015 be deferred to Monday, February 10, the 17^th legislative day.

Which motion prevailed.

Rep. Nelson moved that HCR 1016 be deferred to Wednesday, February 12, the 19^th legislative day.

Which motion prevailed.

HCR 1017 Introduced by: Representatives May, Campbell, Gibson, Hawks, Hawley, Heinert, Hunhoff (Bernie), Killer, Nelson, Olson (Betty), Peterson, Schoenfish, Schrempp, Solum, and Tyler and Senators Frerichs, Bradford, and Lucas

A CONCURRENT RESOLUTION, Urging Congress, the White House Office of National Drug Control Policy (ONDCP), the United States Department of Justice, and the United States Drug Enforcement Administration (DEA) to recognize industrial hemp as a valuable agricultural commodity.

WHEREAS, industrial hemp refers to the nondrug oilseed and fiber varieties of cannabis which have less than three-tenths of one percent tetrahydrocannabinol (THC) and which are cultivated exclusively for fiber, stalk, and seed, and are genetically distinct from drug varieties of cannabis, also known as marijuana; and

WHEREAS, the flowering tops of industrial hemp cannot produce any drug effect when smoked or ingested; and

WHEREAS, Congress never intended to prohibit the production of industrial hemp when restricting the production, possession, and use of marijuana. The legislative history of the Marijuana Tax Act where the current federal definition of marijuana first appeared shows that industrial hemp farmers and manufacturers of industrial hemp products were assuaged by Federal Bureau of Narcotic Commissioner Harry J. Anslinger who promised that the proposed legislation bore no threat to them: "They are not only amply protected under this act, but they can go ahead and raise hemp just as they have always done it"; and

WHEREAS, the United States Court of Appeals for the Ninth Circuit ruled in Hemp Industries v. Drug Enforcement Administration, 357 F.3d 1012 (9th Cir. 2004), that the federal Controlled Substances Act of 1970 (21 U.S.C. Sec. 812(b)) explicitly excludes nonpsychoactive industrial hemp from the definition of marijuana, and the federal government declined to appeal that decision; and

WHEREAS, the Controlled Substances Act of 1970 specifies the findings to which the government must attest in order to classify a substance as a Schedule I drug and those findings include that the substance has a high potential for abuse, has no accepted medical use, and has a lack of accepted safety for use, none of which apply to industrial hemp; and

WHEREAS, Article 28, Section 2, of the Single Convention on Narcotic Drugs, 1961, as amended by the 1972 Protocol, states that, "This Convention shall not apply to the cultivation of the cannabis plant exclusively for industrial purposes (fibre and seed) or horticultural purposes."; and

WHEREAS, industrial hemp is commercially produced in more than thirty countries, including Canada, Great Britain, France, Germany, Romania, Australia, and China without undue restriction or complications; and

WHEREAS, American companies are forced to import millions of dollars worth of hemp seed and fiber products annually from Canada, Europe, and China, thereby effectively denying American farmers an opportunity to compete and share in the profits; and

WHEREAS, nutritious hemp foods can be found in grocery stores nationwide and strong durable hemp fibers can be found in the interior parts of millions of American cars; and

WHEREAS, buildings are being constructed using a hemp and lime mixture, thereby sequestering carbon; and

WHEREAS, retail sales of hemp products for 2012 in this country are estimated to be over $500 million annually; and

WHEREAS, industrial hemp is a high-value low-input crop that is not genetically modified, requires little or no pesticides, can be dry land farmed, and uses less fertilizer than wheat and corn; and

WHEREAS, the reluctance of the United States Drug Enforcement Administration to permit industrial hemp farming is denying agricultural producers in this country the ability to benefit from a high-value, low-input crop, which can provide significant economic benefits to producers and manufacturers; and

WHEREAS, the United States Drug Enforcement Administration has the authority under the Controlled Substances Act to allow this state to regulate industrial hemp farming under existing laws and without requiring individual federal applications and licenses:

NOW, THEREFORE, BE IT RESOLVED, by the House of Representatives of the Eighty-Ninth Legislature of the State of South Dakota, the Senate concurring therein, that the South Dakota Legislature urges the Congress of the United States to recognize industrial hemp as a valuable agricultural commodity, to define industrial hemp in federal law as nonpsychoactive and genetically identifiable species of the genus cannabis, to acknowledge that allowing and encouraging farmers to produce industrial hemp will improve the balance of trade by promoting domestic sources of industrial hemp, and to assist United States producers by removing barriers to state regulation of the commercial production of industrial hemp; and

BE IT FURTHER RESOLVED, that the Legislature also urges the United States Drug Enforcement Administration to allow South Dakota to regulate industrial hemp farming under existing state laws and regulations, or those to be passed, without requiring federal applications, licenses, or fees.

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

SCR 1: A CONCURRENT RESOLUTION, Urging Congress to reject the proposal to remove the states' authority to designate a hospital as a necessary provider under the critical access hospital program.

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

CONSIDERATION OF REPORTS OF COMMITTEES

Rep. Lust moved that the report of the Standing Committee on

Agriculture and Natural Resources on HB 1083 as found on page 306 of the House Journal be adopted.

Which motion prevailed.

FIRST READING OF SENATE BILLS AND JOINT RESOLUTIONS

SB 68: FOR AN ACT ENTITLED, An Act to adopt the uniform real property electronic recording act, to use an existing funding source to implement the provisions of this Act, and to revise certain provisions concerning electronic recording.

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

SB 95: FOR AN ACT ENTITLED, An Act to revise certain vehicle dealer licensing provisions.

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

SB 103: FOR AN ACT ENTITLED, An Act to establish certain civil penalties for tampering or removing any highway marker, sign, or control device and to distribute the revenue from such civil penalties.

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

SB 113: FOR AN ACT ENTITLED, An Act to revise the minimum suspension requirements for students participating in extracurricular activities.

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

SECOND READING OF CONSENT CALENDAR ITEMS

HB 1131: FOR AN ACT ENTITLED, An Act to clarify that a credit card is not required to establish a revolving credit account.

Was read the second time.

The question being "Shall HB 1131 pass?"

And the roll being called:

Yeas 64, Nays 0, Excused 6, Absent 0

Excused:
Carson; Feickert; Magstadt; Munsterman; Schrempp; Tulson

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.

HB 1105: FOR AN ACT ENTITLED, An Act to repeal certain outdated and obsolete provisions regarding the compilation and publication of certain local government annual fiscal reports.

Was read the second time.

The question being "Shall HB 1105 pass?"

And the roll being called:

Yeas 64, Nays 0, Excused 6, Absent 0

Excused:
Carson; Feickert; Magstadt; Munsterman; Schrempp; Tulson

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.

SB 58: FOR AN ACT ENTITLED, An Act to provide for permits to be issued for certain harvest vehicles.

Was read the second time.

The question being "Shall SB 58 pass?"

And the roll being called:

Yeas 64, Nays 0, Excused 6, Absent 0

Excused:
Carson; Feickert; Magstadt; Munsterman; Schrempp; Tulson

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.

SECOND READING OF HOUSE BILLS AND JOINT RESOLUTIONS

Rep. Lust moved that the balance of the calendar including HB 1171, 1071, 1143, 1158, 1180, 1130, 1133, 1232, and 1111 and SB 12, 64, 55, 34, and 35 be deferred to Monday, February 10, the 17^th legislative day.

Which motion prevailed.

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

REPORTS OF STANDING COMMITTEES

MR. SPEAKER:

The Committee on Legislative Procedure respectfully reports that HB 1024 and 1055 were delivered to his Excellency, the Governor, for his approval at 9:35 a.m., February 7, 2014.

Also MR. SPEAKER:

The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared HB 1044, 1047, 1049, 1057, and 1070 and finds the same correctly enrolled.

Respectfully submitted,

Brian G. Gosch, Chair

SIGNING OF BILLS

The Speaker publicly read the title to

HB 1044: FOR AN ACT ENTITLED, An Act to authorize limited cosmetology services outside of a licensed salon or booth.

HB 1047: FOR AN ACT ENTITLED, An Act to revise various trust and trust company provisions.

HB 1049: FOR AN ACT ENTITLED, An Act to establish and revise certain provisions regarding the South Dakota Athletic Commission.

HB 1057: FOR AN ACT ENTITLED, An Act to repeal certain provisions imposing the inheritance tax and the estate tax.

HB 1070: FOR AN ACT ENTITLED, An Act to sunset certain tax refund claims for an economic development incentive program that has been previously terminated and to declare an emergency.

And signed the same in the presence of the House.

COMMEMORATIONS

HC 1026 Introduced by: Representatives Werner, Bartling, and Qualm and Senators Van Gerpen and Sutton

A LEGISLATIVE COMMEMORATION, commending and honoring the Community Bank in Avon, South Dakota, for their continued entrepreneurial spirit, hard work, and dedication to the community for the past 100 years.

WHEREAS, Tom Pier chartered his bank in the town of Kingsburg in 1914, and subsequently moved the bank to the town of Avon, becoming the Community Bank in 1933; and

WHEREAS, the Community Bank is celebrating on May 20, 2014, 100 years of offering continued banking services to their area customers; and

WHEREAS, the Community Bank staff and directors will host for its customers and friends a 100th anniversary celebration complete with dinner and entertainment on May 31, 2014, at the Avon High School Gym; and

WHEREAS, the Community Bank is a locally owned South Dakota 4th generation family business that provides agriculture, business, and consumer loans along with a variety of other deposit options and services for their valued customers; and

WHEREAS, since the opening of Community Bank, the bank has continued the tradition of supporting and contributing to worthwhile community activities and projects:

NOW, THEREFORE, BE IT RESOLVED, by the House of Representatives of the Eighty-Ninth Legislature of the State of South Dakota, the Senate concurring therein, that the Community Bank be commended for its distinction of providing excellent service to their customers and communities and be honored for reaching this significant milestone.

HC 1027 Introduced by: Representatives Westra, Anderson, Cammack, Conzet, Cronin, Gosch, Heinemann (Leslie), Kaiser, Kopp, Latterell, Lust, Magstadt, May, Mickelson, Novstrup (David), Olson (Betty), Schaefer, Stalzer, and Steele and Senators Begalka, Holien, Rhoden, Tidemann, and Welke

A LEGISLATIVE COMMEMORATION, Commending several of Lincoln High School's athletic programs whose participants, through hard work and devotion, excelled on the field and in the classroom, never took their eyes off the prize, and as a result, were rewarded with state championships.

WHEREAS, the Lincoln High School Football Team, the Boys Cross Country Team, and the Boys Soccer Team all displayed dedication, sportsmanship, and teamwork throughout their respective seasons and as a result stand alone as number one in their sports; and

WHEREAS, the Girls Basketball Team overcame many obstacles, including injuries, and was continually labeled as the underdog. The team never gave up and showed incredible resilience on the way to winning the State Class AA Girls Basketball Championship title; and

WHEREAS, the coaches and parents of these student athletes showed dedication and sacrificed time to instill integrity, perseverance, and excellence in student athletes both on and off the field:

NOW, THEREFORE, BE IT COMMEMORATED, by the Eighty-Ninth Legislature of the State of South Dakota, that Lincoln High School and the members and coaches of their championship teams be commended for their excellence and outstanding performances in 2013.

Rep. Steele moved that the House do now adjourn, which motion prevailed and at 1:31 p.m. the House adjourned.

Arlene Kvislen, Chief Clerk