March 25, 2016

The Honorable Matt Michels

President of the Senate

500 East Capitol Avenue

Pierre, SD 57501

Dear Mr. President and Members of the Senate,

I respectfully return to you Senate Bill 96, with my VETO.

Senate Bill 96 is an Act to revise the reimbursement for members of the Board of Pardons and Paroles.

The bill, in its original form, would have increased compensation for members of the Board of Pardons and Paroles by raising the per diem paid to the members from $75 to a minimum of $200 per day. However, an amendment to the bill set a fixed per diem allowance. The final bill pays Board members a certain per diem, all of which is taxable, and limits the ability of the Department of Corrections to handle unexpected lodging costs.

Under current law, Board members are reimbursed a per diem for the day, which is taxable, plus given stipends for meals and lodging, which are not taxable. In the event lodging cannot be procured at the state rate, the Department of Corrections has the ability to request a waiver from the State Auditor to cover the higher rate. Under Senate Bill 96, Board members would be given a fixed per diem, that while larger than their current per diem, is taxable and cannot be adjusted for higher lodging rates. In certain circumstances, Board members will be receiving less overall compensation from the state under Senate Bill 96 than under the current system.

Because I appreciate the work of this important board and have great respect for the dedication of its members, I do not believe we should burden the members with increased paperwork, increased taxes, and less overall compensation.

For these reasons, I oppose this bill and ask that you sustain my veto.

Respectfully submitted,

Dennis Daugaard

Governor