Nepotism bill defeated in committee

PIERRE — There were some uncomfortable legislators at the Jan. 23 Senate State Affairs Committee meeting as they dealt with a bill outlawing nepotism in state government.

The bill’s sponsor, Sen. Stace Nelson, R-Fulton, said he looked past a previous governor’s penchant for hiring relatives because he had worked hard to get that governor elected.

“I’ve come to see the error of my ways,” Nelson said. “Nepotism is government corruption. That’s a fact.”

SB39 would keep state government supervisors from hiring parents, children, stepchildren, siblings or in-laws. The bill says that if money is paid to the relative of a state official, three times that amount will be deducted from the compensation of the official who hired a relative.

According to SB39, residents can report nepotism through a “declaratory judgment action” in circuit court. If the resident prevails in court an elected official would forfeit office and an employee would lose his job.

Nelson said nepotism in state government adds to South Dakota’s “culture of corruption.” He told the committee that 34 states have prohibitions against nepotism.

“State employment is not the spoils of victory,” Nelson said.

Nepotism isn’t new is South Dakota state government. Gov. Kristi Noem hired her daughter, Kennedy, a recent South Dakota State University graduate, as a policy adviser in her office. Gov. Dennis Daugaard’s chief of staff was his son-in-law, Tony Venhuizen. Gov. Mike Rounds hired his brothers, sisters-in-law and children.

“Our group feels very strongly about nepotism,” said Tonchi Weaver representing South Dakota Citizens for Liberty. “We do think it colors decisions that are made.”

Sen. Lance Russell, R-Hot Springs, who drafted much of the bill, said the enforcement section of the bill relies on civil action because prosecutors in South Dakota are elected officials and may be hesitant to bring action against someone in their own political party.

Russell noted that anyone already hired through nepotism would be allowed to stay on the job as the law would not take effect until July 1.

“I’m uncomfortable being here,” Russell said, as he related a story about feeling odd when dealing with a chief of staff who was related to the governor.

Sen. Brock Greenfield, R-Clark, moved that the bill be deferred to the 41st legislative day, a tactic that essentially kills legislation.

Greenfield offered his assessment that Kennedy Noem is a capable person and he was sure that the governor would hire and fire relatives according to their merits.

“Is South Dakota any better by limiting the pool of who’s available to work in state government?” Greenfield asked. “Everybody has relatives that they serve with or for or under or over.”

Sen. Craig Kennedy, D-Yankton, said he would be voting for moving the bill to the 41st day, even though he was no fan of nepotism.

“I don’t think it’s very well crafted,” Kennedy said of the bill.

Sen. Al Novstrup, R-Aberdeen, took issue with Nelson’s characterization of South Dakota as a state with a culture of corruption.

“That is not the South Dakota I know,” Novstrup said.

The motion to move the bill to the 41st day was approved unanimously.