Cc235A
REPORT OF CONFERENCE COMMITTEE
MR. PRESIDENT:
MR. SPEAKER:
The Conference Committee respectfully reports that it has considered SB 235 and the amendments
thereto made by the House, and the disagreement of the two houses thereon, and recommends that
SB 235 be amended as follows:
235fg
On page 1, line 10, of the House State Affairs Committee engrossed bill, delete "GOED. The
board" and insert "the Bureau of Finance and Management. The state".
On page 1, line 13, delete "project" and insert "new or expanded facility with project costs
exceeding twenty million dollars".
On page 1, line 14, delete "23 to 37" and insert "24 to 36".
On page 2, line 1, delete "contractors'" and insert "contractor's".
On page 2, between lines 8 and 9, insert:
"
Notwithstanding the provisions of this section, no deposit or transfer to the building South
Dakota fund may be made by the commissioner of the Bureau of Finance and Management if the
projected ongoing revenues adopted by the Legislature for the prospective fiscal year are insufficient
to accommodate:
(1) The statutory increases for state aid to K-12 general education, special education, and the
technical institutes;
(2) Projected Title XIX and the Title XXI spending adjusted for increased provider payments,
increased utilization, or enrollment growth, and as affected by any reduction in the
Federal medical assistance percentage; and
(3) The state employee salary policy increase, commensurate with the K-12 inflationary
increase, in addition to funds necessary to meet actuarially projected increases in health
insurance costs.".
On page 2, line 10, before "fund" insert "building South Dakota".
On page 2, line 16, delete "section 8" and insert "section 10".
On page 2, line 18, delete "section 11" and insert "section 13".
On page 2, line 20, delete "or loans".
On page 2, line 22, delete "The Governor's Office of Economic Development" and insert "Each
department administering the funds received from section 2 of this Act".
On page 3, line 5, delete "other".
On page 3, line 6, delete everything after "." and insert "The board shall consider the funding
mechanisms available to and utilized by the applicant when making a decision to award a grant.".
On page 3, delete lines 7 and 8.
On page 3, line 9, delete "from a wheel tax increase.".
On page 3, delete lines 13 to 15, inclusive, and insert "Section 5. There is hereby created in the
state treasury the economic development partnership fund. The Board of Economic Development
may award grants to any nonprofit development corporation, municipality, county, or other political
subdivision of this state from the fund".
On page 3, line 20, delete "GOED" and insert "The Board of Economic Development".
On page 3, line 21, after "equipment" insert "and training".
On page 3, line 22, delete "GOED" and insert "The board".
On page 4, delete lines 10 to 24, inclusive, and insert:
"
Section 8. The Board of Economic Development shall promulgate rules pursuant to chapter 1-26
regarding the application process and timelines, the guidelines and criteria for approval of
applications, and the distribution of funds from the local infrastructure improvement grant fund.
Section 9. The Board of Economic Development shall promulgate rules pursuant to chapter 1-26
regarding the application process and timelines, the guidelines and criteria for approval of
applications, and the distribution of funds from the economic development partnership fund.
Section 10. There is hereby created in the state treasury the workforce education fund to be used
for the following purposes:
(1) To fund the limited English proficiency adjustment as referenced in section 11 of this Act;
(2) Provide grants for the purposes of providing secondary career and technical education
programs; and
(3) Provide additional one-time funding to school districts.
Interest earned on money in the fund shall be deposited into the fund. Any money in the
workforce education fund is continuously appropriated to the Department of Education for the
purposes stated in sections 10 and 11 of this Act. Any money deposited into and distributed from the
fund shall be set forth in an informational budget as described in § 4-7-7.2.
Section 11. The secretary of the Department of Education shall authorize and disburse money
from the workforce education fund to fund the state's share of the limited English proficiency
adjustment as calculated by §§ 13-13-10.1 and 13-13-73 for state fiscal years 2014, 2015, and 2016.
If, after the state's share of the limited English proficiency adjustment is funded, the workforce
education fund exceeds two million dollars as of July first of each year, the amount of money in
excess of one million dollars shall be disbursed as follows:
(1) An amount not to exceed one million five hundred thousand dollars shall be distributed
to fund new and existing secondary career and technical education programs; and
(2) Any amount remaining in the fund over one million dollars after the distribution in
subdivision (1) is made shall be allocated to each school district in an amount equal to the
money available for such distribution times the ratio of each school district's fall
enrollment to the total state fall enrollment as defined in § 13-13-10.1.
Section 12. The South Dakota Board of Education shall promulgate rules pursuant to chapter 1-26 regarding the application process and timelines, the guidelines and criteria for approval of
applications, and the distribution of funds from the workforce education fund.".
On page 5, delete lines 1 to 22, inclusive.
On page 5, line 24, after "Housing" insert "Development".
On page 6, line 1, delete "extremely low" and insert "moderate".
On page 6, line 3, delete "11 to 20" and insert "13 to 21".
On page 6, line 4, after "." insert "Any money in the South Dakota housing opportunity fund
is continuously appropriated.".
On page 6, line 7, delete " this sections11 to 20" and insert "sections 13 to 21".
On page 6, delete lines 15 to 24, inclusive.
On page 7, delete lines 1 to 24, and insert:
"
(5) "Oversight commission," the commissioners that govern the South Dakota Housing
Development Authority;
(6) "Single family home," any home built to the International Residential Code (IRC) or the
United States Department of Housing and Urban Development (HUD) Building Code as
of January 1, 2013, and located on a suitable site that is zoned properly for a IRC or HUD
single family residence.".
On page 8, delete lines 1 and 2.
On page 8, line 11, delete "Native American tribe" and insert "tribal government".
On page 8, line 18, after "construction" insert "or the purchase".
On page 9, line 2, delete "for" and insert "in".
On page 9, line 12, delete everything after "." .
On page 9, delete lines 13 to 18, inclusive.
On page 10, line 4, after "fund" insert ".".
On page 10, line 16, delete "ex officio".
On page 10, between lines 23 and 24, insert:
"
The members shall be appointed to the board for a term of two years before the close of each
regular session of the Legislature. If there is a vacancy, the vacancy shall be filled in the same
manner as the original appointment.".
On page 10, line 24, delete "23 to 37" and insert "24 to 36".
On page 11, delete lines 6 to 24, inclusive, and insert:
"
(4) "Construction date," the first date earth is excavated or a contractor has initiated work for
the purpose of constructing a new or expanded facility or the first date new equipment is
located on the project site or existing equipment is removed from the project site for the
purpose of equipment upgrades, whichever occurs first;
(5) "Data center," any facility established for the purpose of processing, storage, retrieval, or
communication of data;
(6) "Department," the Department of Revenue;
(7) "Equipment upgrades," the installation of new equipment or the replacement or
improvement of existing equipment, which is subject to the sales or use tax imposed by
chapters 10-45 or 10-46 or contractor's excise tax imposed by chapters 10-46A or 10-46B;
(8) "GOED," the Governor's Office of Economic Development;
(9) "New or expanded facility," a new building or structure, or the expansion, renovation, or
retrofitting of an existing building or structure, which is subject to the contractor's excise
tax imposed by chapters 10-46A or 10-46B;
(10) "Person," any individual, firm, copartnership, joint venture, association, cooperative,
nonprofit development corporation, limited liability company, limited liability
partnership, corporation, estate, trust, business trust, receiver, or any group or combination
acting as a unit;
(11) "Project," a new or expanded facility with a project cost which exceed twenty million
dollars, or equipment upgrades with a project cost which exceed two million dollars. A
project includes laboratory and testing facilities, manufacturing facilities, data centers,
power generation facilities, power transmission facilities, agricultural processing
facilities, wind energy facilities, and facilities defined by GOED as targeted industries.
A project does not include any building or structure:
(a) Used predominantly for the sale of products at retail, other than the sale of
electricity at retail, to individual consumers;
(b) Used predominantly for residential housing or transient lodging;
(c) Used predominantly to provide health care services;
(d) Used predominantly for the transportation or transmission of natural gas, oil, or
crude oil by means of a pipeline; or
(e) That is not subject to ad valorem real property taxation or equivalent taxes
measured by gross receipts;
(12) "Project cost," the amount paid by the project owner in money, credits, property, or other
consideration associated with a project including, without limitation, land, labor,
materials, furniture, equipment, fees, or fixtures;
(13) "Wind energy facility," any new facility or facility expansion that:
(a) Consists of a commonly managed integrated system of towers, wind turbine
generators with blades, power collection systems, and electric interconnection
systems, that convert wind movement into electricity, and is subject to the tax
imposed by §§ 10-35-18 and 10-35-19; and
(b) The construction of which is subject to contractors' excise tax pursuant to chapter
10-46A or 10-46B.".
On page 12, delete lines 1 to 16, inclusive.
On page 12, line 18, delete "replacement" and insert "upgrades".
On page 12, line 19, delete "23 to 37" and insert "24 to 36".
On page 12, line 21, delete "section 25" and insert "section 26".
On page 12, line 22, delete "section 27" and insert "section 28".
On page 12, line 23, delete "section 28" and insert "section 29".
On page 13, line 1, delete "23 to 37" and insert "24 to 36".
On page 13, line 4, delete "23 to 37" and insert "24 to 36".
On page 13, line 6, delete "23 to 37" and insert "24 to 36".
On page 13, line 7, delete "no sooner than ninety days before the construction date, or".
On page 13, line 9, delete "23 to 37" and insert "24 to 36".
On page 13, line 18, before "contractors" insert "anticipated".
On page 13, line 24, after "." insert "The board shall consider the likelihood that the project
would have occurred without the reinvestment payment.".
On page 14, line 1, delete "by the".
On page 14, delete line 2, and insert "on the project costs.".
On page 14, delete lines 9 and 10.
On page 14, line 11, delete "(5)" and insert "(4)".
On page 14, line 12, delete "(6)" and insert "(5)".
On page 14, line 12, delete "section 36" and insert "section 35".
On page 14, line 15, delete "section 28" and insert "section 29".
On page 15, line 9, delete "and".
On page 15, line 10, after "(9)" insert "If the reinvestment payment was assigned or transferred,
the name and address of the person to whom the reinvestment payment has been assigned or
transferred; and
(10)".
On page 15, line 15, delete "section 28" and insert "section 29".
On page 15, line 18, delete "23 to 37" and insert "24 to 36".
On page 15, line 18, delete everything after "." and insert "If the person filing the affidavit for
reinvestment payment knowingly makes any material false statement or report in the affidavit for
reinvestment payment".
On page 15, line 19, delete everything before "," .
On page 15, line 20, delete "23 to 37" and insert "24 to 36".
On page 15, line 23, delete "23 to 37" and insert "24 to 36".
On page 15, line 23, before "." insert ", unless an extension is granted at the sole discretion of
the board, which extension may not extend beyond four years from the construction date".
On page 16, line 1, delete "sixty" and insert "ninety".
On page 16, line 2, after "." insert "If GOED requests additional documents or information from
the project owner, the ninety day period begins to run from the date of receipt of the additional
documents or information.".
On page 16, line 5, delete "23 to 37" and insert "24 to 36".
On page 16, line 8, delete "23 to 37" and insert "24 to 36".
On page 16, line 12, delete "23 to 37" and insert "24 to 36".
On page 16, delete lines 17 to 20, inclusive.
On page 16, line 22, before "tax" insert "sales and use".
On page 16, line 24, delete "percentage of funds that" and insert "amount of funds attributable
to the project that the".
On page 17, line 3, delete "23 to 37" and insert "24 to 36".
On page 17, line 8, after "local" insert "government tax mechanisms".
On page 17, delete lines 13 to 17, inclusive.
On page 17, line 22, delete "compensation" and insert "commission".
On page 22, between lines 1 and 2, insert:
"
Section 40. The provisions of sections 37 and 38 of this Act are effective on July 1, 2013.
Section 41. There is hereby appropriated from the general fund the sum of seven million dollars
($7,000,000), or so much thereof as may be necessary, to the Bureau of Finance and Management
for the purpose of funding the building South Dakota fund.
Section 42. The commissioner of finance and management shall approve vouchers and the state
auditor shall draw warrants to pay expenditures authorized by this Act.
Section 43. Any amounts appropriated in this Act not lawfully expended or obligated shall revert
in accordance with the procedures prescribed in chapter 4-8.".
On page 1, line 1, of the House State Affairs Committee engrossed bill, delete everything after
"Act to" and insert "create the building South Dakota fund and certain other funds and programs to
enhance economic development and education, to make certain deposits and transfers, to make
continuous appropriations, to revise certain education funding to support economic development,
to make an appropriation therefor, and to declare an emergency.".
On page 1, delete lines 2 to 6, inclusive.
Respectfully submitted, Respectfully submitted,
____________________________ ____________________________
David Lust Russell Olson
House Committee Chair Senate Committee Chair