Sunday,  March 16, 2014 • Vol. 16--No. 243 • 9 of 30

(Continued from page 8)

patchwork of exceptions. To be clear, though, I do not think it is a good idea, in any instance, ESPECIALLY because we just raised the tourism tax last year.
• To provide you with a brief discussion on a few other bills, SB 104 would allow a landowner or occupant and one guest to utilize night vision equipment when attempting to hunt predators, rodents and varmints. Current law allows for the landowner and a guest to spotlight and hunt said animals at night. This would merely allow them to add another tool to the mix. The bill passed the House, 62-8.
• SB 69 would change a long-standing policy regarding business owners who are self-employed and who pay themselves a salary. These people are required to make unemployment insurance contributions on themselves, but they have never been able to collect benefits against their account, even when they lose their employment through no fault of their own. Passage of SB 69 would change that policy to allow them to draw benefits against their own businesses' accounts, in the case that they might become disabled or would have to leave employment for another bona fide reason. It passed 69-0.
• House Commerce Committee heard, and subsequently killed, SB 114, which would have allowed wine manufacturers to directly ship wine to consumers. There were a number of issues contained within the bill that were not able to be reconciled. The Governor's office sent a lobbyist to speak in favor of the bill. However, when I asked whether they would support direct shipment of either beer or distilled spirits, the response was "no". I asked why, and the reason given was "because of alcohol content". This made absolutely no sense, as wine is generally higher in alcohol content than beer, but lower than distilled spirits. Apparently 3.2% is objectionable, 12% is desirable, and 25+% lands one in the same category as 3.2! Also, the bill exempted the manufacturers from one of the very taxes that wholesalers have to pay, and it would have allowed the manufacturer to offer product at discounts that are explicitly disallowed under the current system. Hence, if the bill had passed, the direct shipper would be given a competitive advantage over Main Street businesses. Moreover, it would have allowed them to essentially thwart the current system by competing directly with retailers outside the three-tier (manufacturer-->wholesaler-->retailer) system. Finally, when I asked the Department of Revenue how they would ensure that any taxes due would be remitted by businesses that do not have nexus in South Dakota, they said the essentially had no enforcement authority, nor did the bill allow them to revoke a license for non-compliance. This bill was a mess, and it was lending to untold pitfalls if it had passed. The committee killed the bill 10-3.
• As always, I appreciate you folks for sharing your thoughts and concerns with me, and I also want to thank you for reading my columns. I will be back next week with a session wrap-up. Until then, God bless!

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