92
nd Legislative Session _ 2017
Committee: House State Affairs
Wednesday, February 22, 2017
P - Present
E - Excused
A - Absent
Roll Call
P Bartling
P Beal
P DiSanto
P Haggar
P Hawley
P Heinemann
P Latterell
P Lust
P Mickelson
P Peterson (Kent)
P Rozum
P Qualm, Vice-Chair
P Rhoden, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Representative Rhoden, Chairman.
MOTION: TO APPROVE THE MINUTES OF FEBRUARY 15, 2017
Moved by: Mickelson
Second by: Qualm
Action: Prevailed by voice vote.
HB 1076: create a State Government Accountability Board.
Presented by: Representative Soli
Proponents: Tony Vanhuizen, Governor's Office
Marty Jackley, Attorney General
Opponents: Doug Kronaizl, Represent Us
MOTION: AMEND HB 1076
1076dh
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That the code be amended by adding a NEW SECTION to read:
There is hereby created a State Government Accountability Board to be composed of four
members appointed by the Governor. Each member to be appointed shall be a former or retired
circuit court judge or Supreme Court Justice. No more than two of the appointed members may be
of the same political party. All appointees are subject to confirmation by the Senate and no appointee
may be a member of the Legislature during the member's term on the board. The term for a board
member is five years and a board member may only be removed for good cause. Good cause to
remove a member is conduct such as: malfeasance or misfeasance in office, neglect of duty, corrupt
conduct, gross incompetency, or active partisanship. A vacancy in the board's membership shall be
filled by the Governor within thirty days of the event causing the vacancy. If a vacancy occurs before
a term expires, the new member shall serve for the remaining portion of the unexpired term. If the
Senate is not in session at the time the appointment is made, the appointee may serve until the Senate
has the opportunity to consider the appointment. The per diem and expenses of the board are the
same as the per diem and expenses for members of interim committees of the Legislature.
Section 2. That the code be amended by adding a NEW SECTION to read:
The initial appointments for the members of the board are temporary and staggered with one
member serving two years, one member serving three years, one member serving four years, and one
member serving five years. Each member's initial term is to be determined by the Governor.
Section 3. That the code be amended by adding a NEW SECTION to read:
The State Government Accountability Board may review and investigate any person holding a
statewide office, as defined in § 12-27-1, and employees of the executive branch of the state
regarding:
(1) Allegations of impropriety related to any contract, grant, or loan with any public entity
that provides the authority to any other entity to expend public funds;
(2) Documents filed under chapter 3-23 or alleged violations relating to conflicts of interest;
(3) Allegations of a direct or indirect interest in a contract in violation of the constitution or
law;
(4) Allegations of malfeasance;
(5) Allegations of misappropriation of public funds;
(6) Allegations of use of false instruments to obtain public funds;
(7) Allegations of theft or embezzlement of public funds;
(8) Allegations of bribery; or
(9) Allegations of use of public money not authorized by law or in violation of the
constitution.
The board may establish its own procedures, issue subpoenas, administer oaths, and take sworn
testimony.
Section 4. That the code be amended by adding a NEW SECTION to read:
Any person acting in good faith may:
(1) Furnish information to the board relating to suspected, anticipated, or completed
violations of a corrupt act relating to any subdivision in section 3 of this Act;
(2) File a report with the board; or
(3) File a complaint with the board alleging a violation of any subdivision of section 3 of this
Act.
The information, reports, or complaints and the investigative records and files of the board are
confidential and not a public record according to chapter 1-27 until the board votes in favor of
conducting a contested case hearing.
Section 5. That the code be amended by adding a NEW SECTION to read:
The board may refer any information, report, or complaint it receives to the Division of Criminal
Investigation for investigation. If, based on the information, report, or complaint, the board has
reasonable cause to believe that a crime has been committed, the matter shall be referred to the
Division of Criminal Investigation. If the Division of Criminal Investigation has cause to believe that
a law has been violated, the division shall refer the matter to a state's attorney or the attorney general
for prosecution. If an investigation does not reveal sufficient facts to support a criminal prosecution,
the Division of Criminal Investigation shall refer the matter back to the board for the board's
consideration. If the Division of Criminal Investigation determines that the information, report, or
complaint is frivolous, it shall communicate this determination to the board in writing and the board
may close the matter.
Section 6. That the code be amended by adding a NEW SECTION to read:
A person acting in good faith is immune from civil liability for furnishing information, filing a
report, or making a complaint. If a civil action is commenced against a person for damages related
to furnishing information, filing a report, or making a complaint and the court determines that the
person acted in good faith, the person may recover costs or disbursements under chapter 15-17
including reasonable attorney's fees. However, if the court determines that the person furnishing
information, filing a report, or making a complaint did not act in good faith, the person who
commenced the civil action may recover costs or disbursements under chapter 15-17, including
reasonable attorney's fees, from the person who did not act in good faith.
Section 7. That the code be amended by adding a NEW SECTION to read:
If a majority of the members of the board vote that there is sufficient information to believe that
a statewide office holder or executive branch employee has engaged in misconduct related to any
subdivision of section 3 of this Act, the board shall conduct a contested case hearing according to
chapter 1-26 to afford the accused person the opportunity to respond to the allegation.
Section 8. That the code be amended by adding a NEW SECTION to read:
At the conclusion of the contested case hearing before the board, if the board determines by a
majority vote of the board that a violation has occurred, the board may:
(1) Issue a public or private reprimand;
(2) Direct a person to engage in coursework or community service; or
(3) Make a specific recommendation to the Governor.
Section 9. That the code be amended by adding a NEW SECTION to read:
A person who has submitted information, a report, or complaint to the board pursuant to section
4 of this Act may request a status update from the board. The board shall respond in writing.
Section 10. That the code be amended by adding a NEW SECTION to read:
The board shall annually report to the people, the Governor, and the Legislature on its activities.
The report shall include data regarding any allegations of violations of subdivisions of section 3 of
this Act, including the number of reports filed, complaints received, number of unique persons filing
complaints or reports, and hearings conducted by the board. The board may not disclose information
that is not subject to disclosure under chapter 1-27 or pursuant to section 4 of this Act.
Section 11. That the code be amended by adding a NEW SECTION to read:
The State Government Accountability Board is attached to the Office of the Attorney General
for administrative and budgetary support. In order to review and investigate any alleged violation
of the subdivisions listed in section 3 of the Act, the board may employ staff as it deems necessary.
The extraordinary litigation fund established in § 1-14-3.1 may be used for legal and investigative
expenses authorized by the board."
Moved by: Mickelson
Second by: Haggar
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1076 AS AMENDED
Moved by: Hawley
Second by: Rozum
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Bartling, Beal, DiSanto, Haggar, Hawley, Heinemann, Latterell, Lust, Peterson
(Kent), Rozum, Qualm, Rhoden
Excused: Mickelson
HB 1089: provide for greater transparency and accountability in state government.
Presented by: Representative Rhoden
Proponents: Marty Jackley, Attorney General
MOTION: AMEND HB 1089
1089oa
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That chapter 12-27 be amended by adding a NEW SECTION to read:
In addition to any penalty that may be imposed on a person pursuant to § 12-27-29.1, if the
secretary of state finds that any person has failed to perform any duty imposed on that person by this
chapter, that person may be assessed an additional penalty not to exceed five hundred dollars. The
secretary of state may refer repeated violations of any duty required under this chapter for
prosecution by a state's attorney or the attorney general.
Section 2. That chapter 12-27 be amended by adding a NEW SECTION to read:
Any person may file with the secretary of state a sworn affidavit alleging a violation of the
campaign finance requirements under this chapter. A sworn affidavit alleging any misconduct,
breach of statutory duty, or malfeasance shall be signed and sworn to by the affiant, fully state any
fact on which the affiant relied, and identify any source of factual information. The affidavit shall
be sufficiently detailed and any allegation shall be internally consistent and plausible. The affidavit
shall be evaluated from the standpoint of a reasonable person. A lack of credible factual evidence
to corroborate any allegation of misconduct shall undermine any affidavit. No conclusion, opinion,
supposition, rumor, or innuendo may be considered in the review of the affidavit. If the sworn
affidavit has sufficiently substantiated facts that lead the secretary of state to believe there is probable
cause that a requirement under this chapter has been violated, the secretary of state may commence
the contested case procedure pursuant to chapter 1-26 to remedy the violation or impose a civil
penalty. The secretary of state may refer the complaint to the Division of Criminal Investigation for
an investigation pursuant to chapter 23-3.
Section 3. That chapter 23-3 be amended by adding a NEW SECTION to read:
Any person may file a sworn affidavit with the Division of Criminal Investigation alleging:
(1) Fraud by an elected official, public officer, or public employee in the performance of any
duty imposed by law on the elected official, public officer, or public employee pursuant
to § 22-30A-10;
(2) Bribery in public office pursuant to § 2-12-9, 22-12A-7, or 22-12A-11; or
(3) An intentional violation of any limit on gifts to public officials under chapter 2-12.
The division shall review the facts alleged in the sworn affidavit and may initiate and conduct
an investigation to determine if a law has been violated. If the division has cause to believe that a
law has been violated, the division shall refer the matter to a state's attorney or the attorney general
for prosecution.
Section 4. That chapter 23-3 be amended by adding a NEW SECTION to read:
If an investigation authorized under section 3 of this Act does not reveal sufficient facts to
support a criminal prosecution, the Division of Criminal Investigation may determine that no further
action is required, or refer the matter to:
(1) The Government Operations and Audit Committee for review of a matter involving a
legislator or legislative employee;
(2) The secretary of state for a matter involving a candidate for the Legislature or statewide
office; or
(3) The Judicial Qualifications Commission for a matter involving a judicial officer.
A sworn affidavit alleging any misconduct, breach of statutory duty, or malfeasance shall be
signed and sworn to by the affiant, fully state any fact on which the affiant relied, and identify any
source of factual information. The affidavit shall be sufficiently detailed and any allegation shall be
internally consistent and plausible. The affidavit shall be evaluated from the standpoint of a
reasonable person. A lack of credible factual evidence to corroborate any allegation of misconduct
shall undermine any affidavit. No conclusion, opinion, supposition, rumor, or innuendo may be
considered in the review of the affidavit.
Section 5. That chapter 3-6D be amended by adding a NEW SECTION to read:
The Government Operations and Audit Committee shall review and investigate any matter
referred to the committee by the Division of Criminal Investigation and may recommend appropriate
action.
Section 6. That chapter 16-1A be amended by adding a NEW SECTION to read:
The Judicial Qualifications Commission shall review and investigate any matter referred to the
commission by the Division of Criminal Investigation and may recommend appropriate action."
Moved by: Heinemann
Second by: Haggar
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1089 AS AMENDED
Moved by: Rozum
Second by: Haggar
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Bartling, Beal, DiSanto, Haggar, Hawley, Heinemann, Latterell, Lust, Peterson
(Kent), Rozum, Qualm, Rhoden
Excused: Mickelson
MOTION: AMEND TITLE OF HB 1089
1089ota
On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "provide certain
provisions regarding investigations of misconduct by certain public officials.".
On page 1, delete line 2.
Moved by: Heinemann
Second by: Rozum
Action: Prevailed by voice vote.
HB 1157: authorize the Board of Regents to contract for the construction of and
improvements to the State Animal Disease Research and Diagnostic Laboratory at South
Dakota State University, to make an appropriation therefor, and to provide for the repayment
thereof.
Presented by: Representative Qualm
Proponents: Nathan Sanderson, Governor's Office
Lorin Pankratz, South Dakota Pork Producers Council
Michael Held, South Dakota Farm Bureau
Brenda Forman, South Dakota Association of Cooperatives
MOTION: AMEND HB 1157
1157fc
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That chapter 1-16G be amended by adding a NEW SECTION to read:
The state treasurer shall establish the agriculture future development subfund within the
revolving economic development and initiative fund created pursuant to § 1-16G-3. Interest earned
on money in the subfund shall be deposited in the subfund.
Section 2. That chapter 1-16G be amended by adding a NEW SECTION to read:
The Board of Economic Development shall administer the agriculture future development
subfund for the purpose of making grants or loans to promote the use of modern technology and
farming practices or promote the use of South Dakota agricultural products at the regental system
or the technical institutes.
Section 3. That chapter 1-16G be amended by adding a NEW SECTION to read:
In connection with the administration of the agriculture future development subfund, the Board
of Economic Development may, pursuant to chapter 1-26, promulgate rules in consultation with the
Executive Board of the Legislature Research Council to implement the provisions of sections 1 and
2 of this Act that include:
(1) Setting the application procedures for applying for loans or grants from the subfund;
(2) Establishing criteria to determine which applicants may receive loans or grants;
(3) Governing the use of proceeds of the loans or grants; and
(4) Establishing criteria for the terms and conditions upon which the loans or grants shall be
made, including the terms of security given, if any, to secure the loans.
Section 4. That chapter 1-16G be amended by adding a NEW SECTION to read:
An agriculture future development subcommittee shall be appointed to make agriculture future
development funding recommendations to the Board of Economic Development. The agriculture
future development subcommittee shall be within the Governor's Office of Economic Development,
and shall exercise all its prescribed functions, including administrative functions. The membership
of the subcommittee shall include:
(1) Five members of the Board of Economic Development appointed by the chair of the
board;
(2) Two members appointed by the speaker of the House of Representatives. One member
shall represent a livestock association and one member shall represent a crop association;
and
(3) Two members appointed by the president pro tempore of the Senate. One member shall
represent a livestock association and one member shall represent a crop association.
The members of the subcommittee provided in subdivisions (2) to (3), inclusive, shall be
appointed to four-year terms of office. The initial terms shall be staggered with two members
appointed to two-year terms of office as determined by the speaker and president pro tempore so that
no more than two members' terms expire in any given year. The speaker and president pro tempore
shall confer before making any appointment to ensure no more than one member is appointed from
an association and that all the members representing either the crop associations or the livestock
associations do not expire in the same year. Not all members may be from the same political party.
Any member appointed to fill a vacancy arising from other than the natural expiration of a term shall
serve only the unexpired portion of the term.
Section 5. That chapter 1-16G be amended by adding a NEW SECTION to read:
In fiscal year 2018, the state treasurer shall transfer from the agriculture future development
subfund the amount available in the subfund, not to exceed three million five hundred thousand
dollars, to the state animal disease research and diagnostic laboratory bond redemption and
operations fund. Each year thereafter, the state treasurer shall annually transfer from the agriculture
future development subfund the sum of three million three hundred fifty thousand dollars each year
to the state animal disease research and diagnostic laboratory bond redemption and operations fund
for the construction, reconstruction, renovation, demolition, and modernization of facilities and
related infrastructure at the State Animal Disease Research and Diagnostic Laboratory on the campus
of South Dakota State University.
Section 6. Section 5 of this Act is repealed on the first day of the month following a
determination by the Animal Industry Board that bonds issued for the State Animal Disease Research
and Diagnostic Laboratory are satisfied and paid in full.
Section 7. That chapter 1-16G be amended by adding a NEW SECTION to read:
If the fees charged by the State Animal Disease Research and Diagnostic Laboratory exceed the
costs of operating the laboratory in any fiscal year, beginning in fiscal year 2021 fifty percent of the
profit shall be transferred from the animal disease research and diagnostic laboratory revolving fund
to the agriculture future development subfund."
Moved by: Heinemann
Second by: Rozum
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1157 AS AMENDED
Moved by: Haggar
Second by: Hawley
Action: Prevailed by roll call vote. (11-1-1-0)
Voting Yes: Bartling, Beal, DiSanto, Haggar, Hawley, Heinemann, Lust, Peterson (Kent), Rozum,
Qualm, Rhoden
Voting No: Latterell
Excused: Mickelson
MOTION: AMEND TITLE OF HB 1157
1157fta
On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "create the
agriculture future development subfund, to provide for its administration, to establish the agriculture
future development subcommittee, and to provide funding for certain programs and projects.".
On page 1, delete lines 2 to 4, inclusive.
Moved by: Heinemann
Second by: Latterell
Action: Prevailed by voice vote.
MOTION: TO TABLE HB 1115
Moved by: Peterson (Kent)
Second by: Beal
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Bartling, Beal, DiSanto, Haggar, Hawley, Heinemann, Latterell, Lust, Peterson
(Kent), Rozum, Qualm, Rhoden
Excused: Mickelson
MOTION: ADJOURN
Moved by: Qualm
Second by: Haggar
Action: Prevailed by voice vote.
Pam Kean
____________________________
Committee Secretary
Larry Rhoden, Chair
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