With only four days remaining in session, this past week put a high volume of bills to rest or moved them on to the Governor’s desk for his consideration. On the House of Representatives side, I was pleased to see SB-154, SJR-501, and SB 6 get a majority of positive votes to move them to the Governor’s desk.
SB-154 prohibited pharmaceutical manufacturers from interfering in contracts between health care entities (that get savings from a program drug pricing program called 340b) and pharmacies across South Dakota. Health care entities (hospitals and community health centers) contract with numerous pharmacies to both maintain a patient’s choice of pharmacies and support the local pharmacists and community, and pharmaceutical manufacturers were wanting that arrangement to be limited. SB-154 was written to not allow that to happen in our state.
I witnessed some very harsh commercials and advertisements vilifying legislators who sponsored this legislation. Knowing what the bill said, my understanding of the 340b program, and realizing that there were no taxpayer dollars of any type involved in this program… The effort and investment in advertising and marketing was outlandish and disturbing. Fortunately, the vast majority of legislators saw through this dark attempt and widely voted in favor of it.
SJR-501 provided legislative approval for a future use water permit application by the Western Dakota Regional Water System. This legislation reserved 20,765-acre feet of water from the Missouri River and was a key component in the WDRWS's application with DANR’s Water Management Board. Their goal is to provide water to 19 western counties, ensuring quality and abundant water resources and preventing future generations from facing water access challenges.
This project will take decades and require significant state and federal resources to complete, but I believe it is an investment in our future. It passed with a 43-27 margin, but I would have expected it to be more. Even many west river legislators did not support it, to which I was astonished. I understand the desire for managed growth in the Black Hills area, but I believe it's crucial to have a vision for the opportunities that abundant water will provide for future generations of South Dakotans. Progress has many definitions and it displeases some.
SB-6 is legislation designed to assist the Douglas School District with the anticipated influx of students resulting from the expansion of Ellsworth Air Force Base to accommodate the new B21 Raider / Stealth Bomber. This legislation enables the school district to borrow money from the South Dakota Housing Infrastructure Loan program at 0% interest for 20 years, with loan repayments going back into the program. This assistance will help the district build or expand a school facility and demonstrates the state’s commitment to the base and the benefits it provides to our economy and national security.
Gaining legislative support for the state to assist a single school district with a building project took time. This request was also made last session, and it required time, respectful encouragement from our congressional delegation, and an understanding of the property tax structure of that district to fund capital improvements. Initially, I had reservations about using the housing infrastructure fund for this purpose, but after several amendments to the original bill, the funding was structured as a loan rather than a grant, which I find acceptable.
During our final week, there will be (finally) some discussion and votes from the full body on several property tax reform bills. As a homeowner myself, and hearing from many of you, I know property taxes are a major concern. Inflation and market forces have driven a 45% increase in property taxes on owner-occupied homes since 2017, and there are no simple solutions. Without a new revenue source, the current proposals appear to either shift the tax burden to commercial or agricultural properties, or merely slow the increases with evaluation caps that will eventually disregard actual market values. This is a complex issue, and I encourage you to contact me if you have any thoughts to share.
Additionally, we must remember to reach a balanced budget next week. I'm looking forward to a productive week and hope to see you soon.
–mw
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