Update on SB198

SIOUX FALLS, S.D. (SDBA) — The House State Affairs Committee voted Monday to send a bill regulating eminent domain proceedings to the 41st day, effectively killing it, before reversing course and resurrecting the measure with dramatically different language.

Senate Bill 198, originally designed to strengthen landowner protections during condemnation proceedings, faced significant opposition during Monday’s hearing from landowners who called it inadequate.

“In my opinion, of all the bills offered in this session, this is one of the most egregious bills I have seen put forward today,” testified Ed Fischbach, a corn and soybean farmer from Mellette. “I would urge you to send this to the 41st day.”

Amanda Radke, a farmer and rancher from Mitchell, called the original bill “a Band-Aid on a bullet wound” at 6:20 and argued it failed to give landowners the right to refuse easements.

The bill initially would have required mediation before condemnation proceedings and mandated that developers obtain Public Utilities Commission permits before beginning eminent domain action.

“This bill was brought in an effort to strengthen the hand of landowners,” said Sen. Jim Mehlhaff, the prime sponsor, defending his legislation before the committee voted 12-0 to defeat it.

However, later in the meeting, Rep. Jon Hansen, R-Dell Rapids, moved to pull the bill off the table for reconsideration.

“This is in my mind the most important issue of the year,” Hansen said, proposing amendment 198F, which rewrote the bill.

The amendment replaced the entire text with a single section prohibiting the use of eminent domain “for a pipeline that carries carbon oxide.”

The amendment passed 9-4 over objections from Rep. Tim Reisch, R-Howard, who called it “a bait-and-switch” and argued, “This is not the way we should be doing business in the people’s house.”

Rep. Karla Lems, R-Canton, defended the move, stating, “This is the people’s bill, and this is the language that the people have been behind.”

The maneuvering allows the committee to advance a carbon pipeline measure nearly identical to House Bill 1052, which previously passed the committee.

“I’d like to have an ace in the hole just in case things go off the rails over there,” Hansen explained, referring to potential “hostile unfriendly amendments” to HB 1052 in the Senate.

Committee Chair Scott Odenbach, R-Spearfish, deferred final action on the amended SB 198 until Wednesday, creating an alternate pathway for the carbon pipeline restrictions to reach the governor’s desk.