SD governor signs bill closing loan loophole in campaign finance law

South Dakota Republican Gov. Larry Rhoden signed a bill into law that would close a campaign finance loophole, he announced Tuesday.

The bill, from Sen. Mike Rohl, R-Aberdeen, was introduced as a response to something that occurred during the most recent election cycle. Toby Doeden, an Aberdeen businessman, reported a $100,000 contribution to his own Dakota First Action committee. The contribution exceeded the state’s $10,000 limit on individual contributions to political action committees.

Doeden later amended the report, reclassifying the contribution as a loan. Existing state law allows loans to be forgiven, effectively providing a way to nullify contribution limits.

The new law says any loan, when combined with contributions from the same source, cannot exceed contribution limits in state law. In other words, in the case of Doeden, he would have been limited to a combined $10,000 of annual contributions and loans to his political action committee.

Another Rohl bill awaiting the governor’s consideration would require candidates to file pre-primary reports of their fundraising and spending even if they’re not involved in a primary race. A third campaign finance bill from Rohl that proposed new restrictions on contributions from inactive candidate committees has been defeated.

Rhoden also signed 12 other bills into law recently, raising the total number of bills signed into law so far this legislative session to 34. Lawmakers have introduced more than 500 bills, resolutions or commemorations since the legislative session started last month, and the session continues until mid-March.

Among other bills Rhoden signed recently is legislation requiring all certified educators, rather than only new educators or those moving from out-of-state, to take a course in South Dakota Indian Studies.