South Dakota Governor Noem Seeks State Supreme Court Guidance on Lawmaker Conflict-of-Interest Rules Following Resignation

Governor Noem and other officials ask for clarity on "indirect" contracts, potential implications for legislation and lawmaker eligibility, following recent resignation and repayment of $500,000 by a state senator who violated rules by accepting federal pandemic funding.

South Dakota Governor Kristi Noem has sought guidance from the state Supreme Court on conflict-of-interest rules for lawmakers, following the resignation of State Senator Jessica Castleberry, who had wrongfully accepted $500,000 in federal COVID-19 stimulus funding for her daycare business.
Castleberry's acceptance of the federal funds violated a state Supreme Court advisory that warns it's unconstitutional for lawmakers to accept such funding and leads to questions over 'indirect' contracts as per the state constitution.
The state constitution prohibits lawmakers from entering into state contracts 'directly or indirectly' during their term and for a year after leaving office, with uncertainty resting on the definition of 'indirect' contracts.
Governor Noem has posed specific questions regarding 'indirect' contracts: Can lawmakers or their spouses be contracted by school districts or counties? Can they subcontract with the state for goods or services or receive foster care reimbursements?
Depending on the court's ruling, several lawmakers may have to either resign or repay the state for services received, which could potentially impact a significant portion of South Dakota's population, according to Majority Leader Senator Lee Schoenbeck.