“Specifically, the Select Committee finds, and requests the Senate concur in its finding, that Senator Julie Frye-Mueller engaged in harassment”

The Senate Select Committee on Discipline and Expulsion has met for what is hopefully a final time regarding the conduct of Senator Julie Frye Mueller, and has issued it’s report.

The committee found specifically that, despite her denials, “that Senator Julie Frye-Mueller engaged in harassment.” 

While the Committee has voted to remove her suspension from the Senate, they are in agreement that she should be censured for her conduct and “bringing the Honor of the Senate into public disrepute.”

And as part of making sure it doesn’t happen again, they are recommending that “Senator Julie Frye-Mueller’s interaction and contact with staff of the Legislative Research Council, including interns and pages, be limited to the director or the director’s designees.”

You can read the report here:

Mr. President:

Your Select Committee on Discipline and Expulsion respectfully reports that it has completed its investigation of the conduct of Senator Julie Frye-Mueller; and, after due deliberation, recommends that the Senate do now endorse the finding of the Select Committee that Senator Julie Frye-Mueller should, and by the approval of three-fifths vote of the Senate shall be, censured for conduct by a senator unbecoming the Senate. Specifically, the Select Committee finds, and requests the Senate concur in its finding, that Senator Julie Frye-Mueller engaged in harassment, as specified in Joint Rule 1B-3(2), that had the effect of unreasonably interfering with an individual employee’s work performance and creating an intimidating working environment in the Legislative Research Council.

The Select Committee finds, and the Senate to concur, that Senator Julie Frye-Mueller’s suspension is part of the Senate discipline for bringing the Honor of the Senate into public disrepute. The Select Committee further recommends the Senate immediately lift the suspension of Senator Julie Frye-Mueller.

Finally, to ensure that an intimidating work environment does not re-occur during the remainder of the Ninety-eighth Legislative Session, the Select Committee recommends that Senator Julie Frye-Mueller’s interaction and contact with staff of the Legislative Research Council, including interns and pages, be limited to the director or the director’s designees.

Respectfully submitted,

David Wheeler, Chair
Select Committee on Discipline and Expulsion

Senate Committee on Appropriations Introduces Gov. Noem’s Budget

PIERRE, S.D. – Today, pursuant to her constitutional authority under Article XII § 7 of the South Dakota Constitution, Governor Kristi Noem transmitted the Governor’s Recommended Budget to the Senate Committee on Appropriations for Introduction. The Senate Committee on Appropriations then voted to introduce the Governor’s Recommended Budget as SB 203, the General Appropriations Act for Fiscal Year 2024.

“South Dakota is proud of our incredible fiscal strength and our balanced budget,” said Governor Kristi Noem. “My budget this year provides for the largest tax cut in South Dakota history; expands paid family leave opportunities to South Dakotans across the state; invests in South Dakota state employees, healthcare providers, and education; and secures our state for our kids and grandkids.”

Governor Noem originally outlined this budget in her 2022 Budget Address, which she delivered on December 6, 2022.

Article XII § 7 of the Constitution provides for a balanced budget in South Dakota: “The Governor shall propose a budget in which expenditures or appropriations may not exceed anticipated revenue and existing funds available for expenditure or appropriation. Appropriations by the Legislature may not exceed anticipated revenue and existing funds available for expenditure or appropriation.”

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Senator Thune filed his post-campaign/cleanup FEC Report for the last month of 2022 showing that he continues to be one of South Dakota’s strongest and most popular elected officials.

Thune 2022 Ye Fec by Pat Powers on Scribd

This only represents the period of 11/29 – 12/31, so it’s a very abbreviated time period. Senator Thune’s committee reported campaign receipts of $209,783.36, with $299,750.46 in disbursements, including a $9200 donation to Feeding South Dakota, along with a $100 memorial gift for the cause.

After everything, Senator Thune’s campaign committee reports a tremendous $16,942,232.64 cash on hand.

Which you might expect given the lack of competition he’s had over the years, and the fact he’s the second most popular US Senator in the nation.

From Austin Goss at Dakota News Now, it looks like the next Senator to be brought up for discipline may be State Senator Shawn Bordeaux who apparently has an issue with Secretary Flute, continually referring to him as an “apple,” a derogatory term towards native Americans:

The Governor’s staff disseminated this, it’s a letter to Senate leadership regarding a comment Sen. Bordeaux made on the floor yesterday about Secretary David Flute. pic.twitter.com/4YVSo3PEoW

— Austin Goss (@AustinGossSD) February 1, 2023

This wouldn’t be the first time Bordeaux was accused of racism, and not the first time he’s been accused of using this term directed at Flute. As noted in the Argus Leader back in 2021, it’s part of what got him kicked off the State-Tribal relations panel:

“To be frank, it’s his racist behavior that caused numerous conflicts, and because of his racist conduct, there needed to be different leadership without a doubt,” Schoenbeck Saturday said of Bordeaux, now the former chairman of the State-Tribal Relations Committee.

Schoenbeck said the beef with Bordeaux goes back to a 2019 committee meeting the Rosebud Sioux tribal member was chairing in which an apple was used to insult a Native American member of Gov. Kristi Noem’s administration. The term “apple,” Schoenbeck said, is used to insult Native Americans perceived to be “red on the outside and white on the inside.”

and..

While Bordeaux confirmed the incident, he denied he was directly involved. He said during his first meeting as chairman of the committee in fall 2019, a visitor to the meeting held up an apple while alluding to South Dakota State-Tribal Relations Secretary David Flute, a member of the Sisseton Wahpeton Sioux Tribe who was notably absent.

Read it here.

Looks like the Committee on Discipline and Expulsion might need to plan on more meetings.

Gov. Noem Signs Unemployment Insurance Tax Cut

PIERRE, S.D. – Today, Governor Kristi Noem signed HB 1011, which cuts unemployment insurance employer contributions by 0.5%, delivering an $18 million tax cut for South Dakota businesses.

“South Dakota’s economy is booming, our unemployment rate is the lowest in our history, and our people are choosing to work,” said Governor Noem. “So many new businesses are choosing to call our state home, and our existing businesses are thriving, so our unemployment reserves are stronger than ever. It’s time to put money back in the pockets of hardworking South Dakota business owners.”

The Department of Labor and Regulation and the Reemployment Assistance Advisory Council drafted legislation in 2016 using an average high-cost multiplier (AHCM) to assess the solvency of the Unemployment Insurance Trust Fund.

An AHCM of 1.0 means enough funds exist to cover a full year of benefits during a recession. Since then, employer tax rates have been based on the AHCM of the fund at the end of each fiscal year.

HB 1011 creates a new tax schedule to reduce employer contribution rates by 0.5% when the balance in the Trust Fund at the end of the fiscal year is at or above an AHCM of 1.5.

Additionally, the bill adjusts the trigger point for a surcharge – this is an additional tax imposed when the balance of the fund drops below $11 million. The surcharge trigger will no longer be tied to a dollar amount, but to an AHCM ratio.

This is the first bill Governor Noem has signed into law in the 2023 legislative session.

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Rounds Leading Legislation to Blacklist Foreign Adversaries from Buying American Farmland and Agricultural Businesses

WASHINGTON – U.S. Senators Mike Rounds (R-S.D.) and Jon Tester (D-Mont.) introduced legislation that would blacklist China, Russia, Iran and North Korea from investing in, purchasing or otherwise acquiring land or businesses involved in agriculture.

“Protecting American farmland is critical to maintaining our national security,” said Rounds. “In my travels around South Dakota, I have heard from many farmers and ranchers who are concerned about foreign adversaries owning American farmland. This legislation makes certain American interests are protected by blacklisting foreign adversaries from purchasing land or businesses involved in agriculture.”

“As a third-generation Montana farmer, I’m not going to sit back and let our foreign adversaries weaken our national security by buying up American farmland,” said Tester. “That’s why I’m proud to be joining my friend Senator Rounds on this bipartisan effort to prevent foreign entities from acquiring U.S. farmland and ensure our farmers have a seat at the table when the government makes decisions impacting our national security.

The Promoting Agriculture Safeguards and Security (PASS) Act of 2023:

• Prohibits China, Russia, Iran and North Korea from purchasing U.S. farmlandand agricultural companies,
• Adds the Secretary of Agriculture as a standing member of the Committee on Foreign Investment in the United States to consider agriculture needs when making determinations affecting our national security,
• Requires the president to submit a report to Congress on any waiver granted to a prohibited country and
• Requires reporting from the Secretary of Agriculture on the risk of foreign purchases of agricultural companies to the American agriculture sector.

This legislation is cosponsored by Senators Kevin Cramer (R-N.D.), John Hoeven (R-N.D.), Cynthia Lummis (R-Wyo.) and John Thune (R-S.D.).

The PASS Act is supported by the South Dakota Farmers Union (SDFU) and the South Dakota Sheep Growers Association.

“SDFU encourages other state farmers union organizations and NFU to endorse Senators Rounds and Testers’ bill S. 4786, Promoting Agriculture Safeguards and Security (PASS) Act,” said Doug Sombke, President of South Dakota Farmers Union. “While I feel securing agriculture land owned by family farmers and ranchers is best served by ensuring they are profitable from the goods they produce and sell at the market place, Senators Rounds and Testers’ PASS bill can be a good second position for food and national security for all American families both consumers and producers alike.”

“We appreciate the efforts of Senator Rounds to protect Agricultural companies and US agricultural lands from foreign take-overs,” said Dustin Vining, President of South Dakota Sheep Growers Association. “Thank you for bringing attention to the dangers of foreign ownership as we try to preserve our domestic food and fiber supply which is so important to the SDSGA as well as the future of agriculture in South Dakota.”

Companion legislation has been introduced in the House by Representatives Elise Stefanik (R-N.Y.), Jim Costa (D-Calif.) and Rick Crawford (R-Ark.).

Click HERE for full bill text.

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Tonight’s committee hearing ended with no huge surprises. Expulsion was probably a leap too far to have the votes for, but I suspect her censure for the alleged actions with a LRC staffer will sail through.

But more than the allegations and the she said testimony against Frye-Mueller, there was something else that was testified to.

No, not Lee Schoenbeck’s dead cat. 🐱

It came up that Frye-Mueller’s husband is not just up as session as her spouse, but he’s a registered lobbyist for Citizens for Liberty. AND they admitted under oath that he is a designated contact for Frye-Mueller on her legislative matters with LRC. How exactly does his status as her legislative contact and a lobbyist for Citizens for Liberty work?

Haugaard attempted to walk that back by noting Mueller is “an unpaid lobbyist.” But why would that matter?  From his wife’s request, he has more access to LRC than any other spouse, and practically more access to LRC than any other Lobbyist.

There’s no wall between Mueller’s liaison and lobbyist roles. I’ve spoken to people with many years as legislators- they have seen it with no one else and it’s highly unusual.  In the past, there have been spouses who have lobbied. But no one has heard of the spouses getting the access and carte blanche as Mike Mueller has.

That might be another issue that JFM has to be called to account for.

I jumped in late, but it was at a crazy moment.

Haugaard keeps insulting Sen. Wheeler, and speaks of mystery witnesses who he won’t name, and aren’t there in the room. He might be able to produce them at 24 or 48 hours. Or not? Nobody really knows.

And, as I said, I came in late. And apparently at the moment neither Senator Frye-Mueller nor her husband have been willing to testify to this point.

Is JFM really going to take the 5th? I mean really?

We’re about back, so I’ll check back in.

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Julie Frye Mueller is apparently taking the stand, and read a timeline… and now she’s off-script going off the rails claiming a reference to a dead cat is all about her.. and more.

Lots of denials here, and claiming there was no “filthy talk.” And more talk of “the dead cat strategy.”

Mueller is trying to imply moral superiority over others, claiming that Senators didn’t rush through “beerfest” and “there are Senators who have DWI’s,” as if it has any bearing on her hearing.

Sen. Tobin asked Mueller about her comments about vaccines. But Mueller had to refer to notes about the breast feeding… and JFM went into her comments about “having her husband help.” Tobin tried to pin Mueller down about the statement’s implications, with Mueller claiming “she didn’t know what that meant.” And she didn’t want to talk about it any more.

Jim Bolin asked more about vaccinations, and the accusation that she told the staffer her baby would die, which Mueller denied.

Senator Duhamel asked Mueller if she was friends with the staffer, with Mueller claiming she thought she was friends, but it must have been a lie – and MUELLER NAMED THE EMPLOYEES NAME, among her response.

Senator Davis questioned Mueller further, but Mueller bristled in her response and after an initial response claimed “you guys are looking for something that’s not there. Why is this more important than drunkfest?” (Lots of deflection from Mueller on the actions of others)

Tobin probed further on Mueller’s views on vaccinations causing Down’s syndrome or killing babies, which Mueller denied.

Prompted by her counsel, Mueller went back to her denial of everything, and stated outrage over the accusations. She was also prompted, and expressed that her own children were vaccinated.

Senator Duhamel noted the vast difference between the two accounts, and asked Frye-Mueller if she wanted to apologize, but Haugaard noted that she could not apologize for something that didn’t take place. Mueller claimed that Senators denied her the opportunity to apologize, and wanted to know why the two parties were denied the opportunity to work it out.

Senator Tobin wanted to probe further, and Mueller noted that she did not ask for an opportunity to apologize because she claimed that she did not know what was going on.

Bolin asked how long the interaction was, Mueller noted 10 min.

From here, her husband Mike Mueller was brought to the stand and said “this was a couple of gals talking” and claimed it was all innocent.

Mike Mueller tried to claim that with his knowledge of harassment as a supervisor, only on the third strike is “someone looking for another job.” Mueller claimed his wife has been hung out to dry.

Erin Tobin asked if it was appropriate for LRC to contact him for drafting bills for his wife. Mike Mueller says he was approved, but also admitted that he was a lobbyist.

Senator Duhamel asked Mueller if it was appropriate for him to be there when two women were talking about breasts.. he said he was a captive audience. Haugaard asked him if he was leaving the room, which Mueller claimed he was leaving but the conversation was over quickly.

Haugaard felt the need to go back and bring up that Mike Mueller was not a paid lobbyist.

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When Wheeler asked if the defense had people to testify, Haugaard kept complaining that they have people to testify, but are not ready.

Wheeler quipped “I take that as No.”

Haugaard keeps claiming it is an injustice that they can’t present these people, and they have people from the other side of state and out of state to testify.

In his closing, Haugaard went on for a while about the amount of time they had to prepare, etc. claimed that “the staffer did not measure the gravity of her comments,” and claims to have people to testify on the staffer’s credibility.

Haugaard noted his weird filings yesterday for the Senate, and complained about a lack of a response. He claimed it was not handled in a professional manner. And asked for more time.

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Nesiba made a motion for censure, limiting Mueller and her husbands access to LRC, and to lift her suspension. It was seconded by Wink.

Wheeler noted that it should not include her husband, and the motion was amended, and passed.

The committee will meet tomorrow with action on the report tomorrow afternoon.

Johnson Applauds USDA Cattle Contract Library Pilot Program Launch

Washington, D.C. – Today, U.S. Representative Dusty Johnson (R-S.D.) applauded the launch of the Cattle Contract Library Pilot Program through the U.S. Department of Agriculture (USDA). Johnson introduced the Cattle Contract Library Act in 2021 to increase transparency in cattle markets by establishing a cattle contract library.

“I am glad USDA is taking steps to implement the Cattle Contract Library Act,” said Johnson. “This will benefit our cattle producers and ensure they’re all getting a fair shake. This program is a step in the right direction to improve our cattle market and transparency for producers.”

Currently, cattlemen do not have full access to contract terms being offered by packers, leading to a decline in leverage for smaller producers during price negotiations. The Cattle Contract Library will allow producers to view price components of cattle contracts, giving them more market information while protecting confidential business information of the contract holders.

The Cattle Contract Library Act passed the U.S. House (411-13) in December 2021 and was included in the Fiscal Year 2022 appropriations package.

The Library’s online dashboard will go live on February 6, 2023.

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Gov. Noem Announces Plan to Restrict Foreign Purchases of Ag Land

PIERRE, S.D. – Today, Governor Kristi Noem and legislators announced proposed legislation to restrict foreign purchases of agricultural land in South Dakota. The plan creates a new board, the Committee on Foreign Investment in the United States – South Dakota (CFIUS-SD), which will investigate proposed purchases of ag land by foreign interests and recommend either approval or denial to the Governor.

“With this new process, we will be able to prevent nations who hate us – like Communist China – from buying up our state’s agriculture land,” said Governor Kristi Noem. “We cannot allow the Chinese Communist Party to continue to buy up our nation’s food supply, so South Dakota will lead the charge on this vital national security issue.”

The prime sponsors of the legislation will be Senator Erin Tobin (R-Winner) and Representative-elect Gary Cammack (R-Union Center).

“For those of us who have lived and worked on the land, we know that it’s our past, but also our future,” said Senator Erin Tobin. “We grow the world’s food, and we need to protect the security of that food supply for our kids.”

The CFIUS-SD board would be made up of three ex officio members: the Governor’s General Counsel (who would serve as board chair), the Secretary of the Department of Agriculture and Natural Resources, and the Director of the South Dakota Office of Homeland Security (part of the South Dakota Department of Public Safety). The board would also include two governor’s appointees: an agricultural industry expert who owns at least 160 acres of agricultural land in SD, and a national and/or state security or foreign policy expert.

“With vital national security resources like Ellsworth Air Force Base, we cannot afford for our enemies to purchase land in South Dakota,” said Representative-elect Gary Cammack. “We want to keep this land in the hands of South Dakota agriculture producers. I look forward to working with Governor Noem and my colleagues to guarantee the continued security of our state and nation.”

The jurisdiction of CFIUS-SD would cover transactions on or after July 1, 2023, including:

• Any transaction of any number of acres – including a land transfer, purchase, grant, devise, descent, or inheritance of agricultural land – involving a “foreign entity” (any foreign person, foreign government, foreign business, or any organization controlled by a foreign person, government, or business);
• Any lease of agricultural land to a foreign entity for a period of one year or longer; and,
• Any transaction previously considered by the federal CFIUS board.

Currently, South Dakota has a law on the books limiting aggregate foreign ownership of agricultural land to 160 acres.

Two weeks ago, Governor Noem signed an Executive Order banning TikTok for South Dakota state government. Since then, the number of states banning TikTok for state governments has risen to eight.

Last week, Governor Noem called on the South Dakota Investment Council (SDIC) to immediately review all state investments for potential ties to nations that hate America, like Communist China. The SDIC has already divested from multiple Chinese holdings as a result of that call.

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