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Senate passes bill closing campaign loan loophole, limits loans to donation caps
Summary
The South Dakota Senate passed Senate Bill 12 to limit candidate or political committee loans to the same amounts allowed for contributions, closing a practice lawmakers said could circumvent contribution limits.
The South Dakota Senate passed Senate Bill 12 on a final vote of 21-13 after debate that centered on campaign finance limits and loan forgiveness loopholes.
Supporters said the bill restores parity between donations and loans and prevents unlimited loans that can be forgiven to effectively skirt contribution caps. Senator Roll said the measure “provides equity back to the people of South Dakota” and described how current law allows loans in excess of contribution limits that can be forgiven, undermining statutory limits.
“This is a clear loophole that we know exists,” Roll said. He described the existing contribution limits in statute — “$1,000 per adult per calendar year for legislative candidates, $4,000 for statewide elected officials, and $10,000 for PACs” — and said the bill bars loans that exceed those donation limits.
Opponents registered concerns during the roll call; the final tally was 21 yays and 13 nays. The Senate journal records the vote by roll call; the presiding officer declared Senate Bill 12 passed after the tally.
The measure, as described during debate, does not change the dollar limits themselves; it restricts loans so they cannot exceed existing contribution limits. No amendments were recorded on the floor debate that changed the bill’s stated limits.
Senate Bill 12 will move to the next step in the legislative process for enrollment and transmission to the House as required by legislative procedure.
