EB-5 and Gear Up have become household terms in South Dakota after the two scandals led many to believe our state does not have enough safeguards or penalties in place to keep situations like them from happening in the first place. Attorney General Marty Jackley hopes Senate Bill 27 will help.
It would add new language to existing law that “any public official who knowingly uses funds or property that has been entrusted to the public official in violation of the public trust and that results in a direct financial benefit to the public official commits a direct criminal conflict of interest. as well as any public official who commits a direct criminal conflict of interest is guilty of theft.” Translation: if a government official uses taxpayer money for personal gain, they’ll get stiffer penalties. But what would have happened if these laws were on the books ten years ago, before the EB-5 and Gear Up scandals?
The bill also includes language knows as “whistle blower protection”. That means it would be against the law for retaliation against an employee who reports what he or she believes to be illegal activity.
During testimony before House Judiciary Committee members today, Jackley told legislators the changes are necessary because under current law it’s only a misdemeanor for a public official to deal taxpayer money for personal gain. Some members of the committee argued the bill is unnecessary because such crimes and whistleblower protection are covered under existing state law. Jackley disagrees.
SB 27 passed through the House Judiciary Committee and could be heard by the entire house as early as tomorrow. Lawmakers have until Friday to finish up their business before the regular run of this year’s session ends.
(SDBA Staff)