Gosch wants to limit Noem-Johnson finance loophole

Yahoo

24-02-2025

PIERRE, S.D. (KELO) — A campaign finance change that could affect the 2026 contest for governor is moving ahead in the South Dakota Legislature.
seeks to limit how much a federal candidate's fundraising committee can transfer.
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Currently there's no limit. That's how then-U.S. Rep. Kristi Noem took advantage of the opening to shift $1.6 million from her congressional campaign committee to her Kristi For Governor committee. She went on to win the 2018 election for governor.
In 2018, U.S. Rep. Dusty Johnson won the seat that Noem held. Johnson is now considering a run for governor in 2026 and has been following the same path as she did.
Johnson showed $5,245,125.00 in his federal campaign committee as of December 31, 2024. None of that money has been transferred. However, he also operates the Dusty Johnson For Victory federal committee. Johnson has been using the federal Victory committee to help fund his state-level political action committee that he started two years ago.
His state political action committee, called Dusty PAC, has received contributions totaling $384,094 from the federal Victory Committee. He made contributions last year from his state PAC to legislative candidates and a ballot-measure committee. His state PAC's 2024 year-end report showed a balance of $277,651.47.
HB 1242 would limit the federal candidate to transferring no more than $10,000. The House State Affairs Committee on Monday endorsed the $10,000 limit on a vote of 11-1.
Republican Rep. Spencer Gosch is the lone sponsor. He denied it was 'anti-Kristi' or 'anti-Dusty.'
'I don't see this as an anti-anybody bill,' Gosch said.
There is some history between Gosch and Noem. They tangled over what should happen to former state Attorney General Jason Ravnsborg. Noem wanted Ravnsborg impeached, while Gosch as House speaker chaired the special investigation committee that recommended against impeachment. Ravnsborg eventually was impeached by the House and removed from office by the Senate.
There was one opponent to HB 1242 on Monday: Rick Weible of Elkton, speaking for himself. Weible said the legislation was poorly written and claimed there's no penalty. 'What's the point? It's unenforceable,' Weible said.
Weible pointed out federal candidates could get around it by making transfers of $10,000 to multiple political committees that could in turn send the transfers to a state committee.
Republican Rep. Tim Reisch asked Gosch who would enforce it. There's a complaint process in state law, Gosch replied. 'I think it's a moot point. That's why I didn't rebuttal,' Gosch said.
Reisch had originally sponsored HB 1242 but had it switched to Gosch. Reisch spoke against it and then voted against it on Monday, saying he now believes it targets someone who plans to 'come back' and run.
The legislation now moves to the House of Representatives for a vote on Tuesday. The Senate meanwhile is considering Senate Bill 201 that would prohibit South Dakota political candidates from accepting contributions or loans from federal candidates.
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