State Supreme Court clarifies conflicts of interest; Noem pledges to fill legislative seats

The Supreme Court at the South Dakota Capitol in Pierre. (Getty Images)

Legislators can have contracts with state government if the money comes from the annual budget bill, but not if the money comes from any other bill.

That’s the gist of a state Supreme Court opinion issued Friday. Immediately after the opinion’s release, Gov. Kristi Noem said it will free her up to make appointments for two empty seats in the Legislature, both from districts in the Rapid City area.

“My team is reviewing this decision and will be announcing legislative appointments very soon,” Noem said in a written statement.

Noem had been waiting to make the appointments until the court offered clarity on conflict of interest language in the state constitution. The language has been a subject of debate since last year, when Noem revealed that a state senator’s business received federal pandemic relief funds through a state contract.

That senator, Jessica Castleberry, ultimately resigned and agreed to repay approximately $500,000 to the state. The other legislative vacancy was created when Rep. Jess Olson resigned, citing health reasons.

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