Bill closes campaign finance loophole

PIERRE — Current South Dakota law allows donors to circumvent campaign finance limits by giving donations to candidates in the name of their minor children. SB114, which was heard by the House State Affairs Committee last Wednesday, would change that.

Sen. Reynold Nesiba, D-Sioux Falls, noted an incident in Sioux Falls where a local candidate was given the maximum $1,000 donation by a donor and then another $1,000 from each of the donor’s five children, ages 6 to 15, for a total donation of $6,000.

“That seems to be a loophole,” Nesiba said, explaining that SB114 calls for the donations of children to be counted against their parent’s donation limit. 

“It makes us all look bad,” Nesiba told the committee. “This will clean up the system for all of us.”

Rep. Spencer Gosch, R-Glenham, opposed the bill for his daughter. In the last election, when Kristi Noem was running to be the state’s first female governor, Gosch said his daughter made this request: “Daddy, I’d like to give her some of my money.”

“Under the current situation we can do that,” Gosch said. “This closes a very small loophole.”

Gosch was advised to look at the bigger picture. 

“I think we want to keep our eye on what’s right for elections,” said Rep. Jamie Smith, D-Sioux Falls. 

“At any time I can create a PAC and donate $10,000,” Gosch said. “I think we’re going after kids for no reason.” 

The bill passed out of committee on a 10-3 vote and now goes on for action in the House.