Joe Sneve

jsneve@argusleader.com

Governor Dennis Daugaard’s administration led the opposition Wednesday against a bill that would have barred governments from keeping dispute settlements secret without a court order.

Currently, state law allows governments negotiating settlement terms to enter into confidentiality agreements and shield details from the public, whether or not they end up in court. That was the case in 2015 when the city of Sioux Falls reached a $1 million settlement with contractors involved in the building of the Denny Sanford Premier Center.

District 12 Rep. Greg Jamison (R-Sioux Falls) wants the state’s open records laws changed to require a court’s involvement before the state, counties, cities and school boards can make settlement deals secret.

But the House Judiciary Committee voted 8-3 to kill House Bill 1166 after nine lobbyists representing everything from the state’s executive branch and municipal governments to the state’s retailers raised concerns over the impact the bill would have on governments’ ability to settle disputes out of court.

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“I don’t believe this bill will increase transparency,” said Jessica Filler, a lobbyist for the state Bureau of Administration. “All it does is require another step in the process.”

Filler and others said Jamison’s bill wouldn’t do anything to stop government settlements from being secret, but would only make the process more burdensome by requiring a court’s involvement. Filler said allowing governments to settle out of court can save taxpayer dollars by keeping litigation out of court.

Paul Bachand, Executive Director for the South Dakota State’s Attorneys Association, said HB 1166 as written wouldn’t just affect civil cases between governments and private parties. Rather, he said it could also hinder law enforcement’s ability to work deals with informants in drug cases, for example. Often times, someone picked up on a drug charge will cut a private plea agreement for a more favorable sentence in exchange for cooperation.

“If you pass this bill in this form, it would absolutely kill that, folks,” Bachand said.

House bill takes aim at government secrecy

But Jamison said the bill only aims to increase transparency when it comes to how tax dollars are being used and is a direct result of the secret settlement the city of Sioux Falls entered into in 2015.

“We weren’t made aware of the details,” Jamison said, referring to his time on the Sioux Falls City Council. “Maybe that’s just lousy government in our little community, but that’s what needs to stop.”

The judicial panel wasn’t void of support for Jamison’s bill. Rep. Dan Kaiser (R-Aberdeen) said despite any drawbacks that might arise, the spirit of HB 1166 is on the mark and puts public access to government business above anything else.

“To me it just comes down to if the government truly works to us – for us, we have a right to know everything they’re up to,” he said.