Shopping Small Can Have a Big Impact
By Sen. John Thune

Nearly everyone in America is familiar with Black Friday. It’s the unofficial start to the holiday shopping season, and with it often comes an early morning, long lines, and, depending on what you’re looking for, some pretty good deals. Black Friday is nearly synonymous with the big-box retailers that are able to stock their shelves and warehouses and offer the large and well-publicized deals we’re used to seeing on commercials between our favorite TV shows. Not only are shoppers happy with Black Friday deals, but the sales are a boon to the economy, and they help sustain a seasonal workforce who depends on the paycheck.  

While Black Friday has cemented its place in American shopping history, it’s the Saturday after Thanksgiving that’s quickly gaining its own notoriety. “Small Business Saturday,” as it’s become known, is a nationwide movement that encourages shoppers who brave the long and sometimes fiercely competitive lines on Black Friday to add Main Street’s small businesses to their holiday shopping routine as well. 

You don’t have to look far in South Dakota to find a small business since there are more than 80,000 of them across the state. You likely know someone who works at a small business, or perhaps you work at one yourself. Small businesses represent 96 percent of all businesses in South Dakota, according to the U.S. Small Business Administration, and they employ nearly 60 percent of our workforce. It would be an understatement to say small businesses are the backbone of South Dakota’s economy.   

South Dakota is full of success stories, and if you’ve ever visited downtown Sioux Falls, I’m sure you’re familiar with one: Chef Chris Hanmer’s CH Patisserie. Chris, who is one of America’s top pastry chefs, opened his shop in 2013, and it’s quickly grown into a must-stop location in Sioux Falls. I’d challenge you to eat only one of his famous macarons – one is never enough. Chris and other small business owners like him not only have successful brick and mortar stores, but they’re also using the power of the Internet to connect with shoppers in other parts of the state and country and grow their business along the way.  

Small Business Saturday is a great opportunity to get out and support the local small businesses that are often the first ones to give back and support the communities in which they serve. For many entrepreneurs, to build a successful small business is to build a part of their community. We should celebrate their contributions on this Small Business Saturday and continue to support them every month of the year.

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Getting our Country Back on Track
By Senator Mike Rounds

As we look forward to the start of a new year, Congress and the new president will have a number of agenda items to start working on to get our country back on track. Along with executive overreach and regulatory reform, finding a solution to our nation’s fiscal crisis is one of the more important issues to address. With our debt spiraling out of control at more than $19 trillion, it’s clear that federal spending at current levels is unsustainable. According to a report from the nonpartisan Congressional Budget Office (CBO), in ten years, 99 percent of all revenue will go toward mandatory payments and interest on our debt. We need to begin managing our entire budget before it is too late.

The long-term driver of our debt and deficit remains the rapid growth of mandatory payments. These include Medicare, Medicaid and Social Security. Already, spending on these mandatory payments, as well as interest on our debt, account for nearly three-quarters of all federal spending. Since the passage of the Congressional Budget Act of 1974, Congress has not exercised oversight over mandatory programs. There is no specific committee with oversight over the efficiency of these necessary expenditures. Instead, Congress has focused on defense and non-defense discretionary spending. This makes up only about 28 percent our entire budget today. I believe now we have the opportunity to change this outdated, failing budget process.

Compare our lack of management of Social Security to South Dakota’s retirement system, in which both chambers of the legislature and the South Dakota Retirement System Board of Trustees actively manage one of the best retirement systems in the nation, every single year. Proactive management of all mandatory programs would be easier if they were voted on as part of the budget process every single year. Better management of these programs does not necessarily mean cutting them. It means making them as efficient as possible.

When our Founders wrote the Constitution, they explicitly gave Congress the task of setting spending and tax policies for our country. James Madison called this power of the purse “the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people.”

Currently, I am working with a number of other senators to find ways to revive the budget process here in Congress, so we can address our budget crisis once and for all. What we have been working on would open up the entire budget to congressional management, including mandatory payments. Our plan would also require the federal budget to be approved and signed into law. Additionally, there would be consequences for Congress should we fail to pass a budget in a timely manner.

As we move forward into a new year, I will continue to encourage my colleagues to work with us to make these important changes to the budget process in Washington. The fiscal crisis isn’t coming ten years from now. The crisis is here, and we need to face it head on.

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Lead Now
By Rep. Kristi Noem

My grandma gave me one of the best pieces of advice I’ve ever received, which I’d venture to guess is typical for almost everyone.  When I was about to become a new mom, she told me, “As a parent, you’re going to have to say no to a lot of things. Say yes as often as you can.”  So, when my kids wanted to race to the end of the driveway, we did.  When they wanted to play in the mud, we did.  When they wanted to play basketball outside a little past their bedtimes, we laced up our shoes and hit the pavement.  We said yes as often as we could, and 22-plus years later, my grandma’s advice has become a deep-rooted philosophy, not just for parenting, but for leadership.

This November, I held my third annual Lead Now Youth Conference.  Among the lessons shared with the 220 attendees was the idea that young people ought to say yes as leadership opportunities come their way.  It’s easy to discount yourself as “too young for the job” or “too inexperienced,” but I encouraged them to try anyway.  Say yes and see where it goes.

Liz Ferro, founder of the non-profit Girls with Sole, shared a similar message, explaining that despite her tough upbringing she pushed past obstacles, said yes to opportunities, and set her sights on something bigger.  The result? Liz has completed over 60 marathons (at least one in every state), finished five Ironman Triathlons, and started an organization aimed at instilling strength, self-confidence, and pride in young women across the country. 

As author Steven J. Stowell wrote, however, “Great leaders find ways to connect with their people and help them fulfill their potential.”  Maybe no one in the business understands this more than SDSU head football coach John Stiegelmeier, who has built strong teams for 20 seasons running.  Coach Stig shared his understanding of teamwork and what’s needed to produce a winning team – whether on the field or in the classroom.

Representatives from Google and The New Colossus, a Sioux Falls-based group dedicated to preventing human trafficking, were also on hand to give students tangible ways to lead among their peer groups today.  After all, it’s not your position in life that matters most.  It’s the choices you make to do what matters that creates true change and happiness.  Our final presenter, motivational speaker V.J. Smith, focused in on this lesson.  He told the story of a Walmart employee in Brookings named Marty.  Marty might not have sat on the top of the corporate ladder, but he was a leader in his own right.  Through gratitude, compassion, and positive thinking, Marty inspired those around him and eventually the world.  It’s an example all of us would benefit from following.

I get excited looking around South Dakota and seeing the boundless potential housed within our young people.  As adults, we have a responsibility to empower our kids to step up and be leaders right where they are.  After all, those who are seizing opportunities in the classroom today will be more comfortable with their ability to seize opportunities for South Dakota tomorrow.  That’s something to which we should all say yes.

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Christmas At The Capitol
A column by Gov. Dennis Daugaard:

When she was in the third grade, Linda Krutzfeldt received a Colorado blue spruce seedling. It was 1986 and a South Dakota Department of Agriculture forester was giving an Arbor Day presentation at Linda’s school in Huron. To go along with his presentation, the forester brought little trees for the children.

Linda took her tree home and planted it outside of her bedroom window so she could look at it each day and watch it grow. She even put a chicken wire fence around the tree to protect it. She called it “the little tree that could.” Under Linda’s care, the tree grew to 40 feet tall.

Thirty years later, that tree will be enjoyed by all who visit the Capitol this holiday season. Linda’s Colorado blue spruce is the tallest tree of this year’s Christmas at the Capitol display.

This season marks the 36^th year of Christmas at the Capitol. The idea was spearheaded by Dottie Howe of Pierre in 1981. That first year there were 12 decorated trees. In 1988, Christmas at the Capitol organizers started inviting groups and organizations from throughout the state to send decorations for 30 Capitol trees. The popularity of the Christmas tree display kept growing and growing, and by 1997 groups were decorating 50 trees.

This year we have over 90 trees in our display. The largest tree donated by Linda and her family has been decorated by the Mt. Rushmore Society and the theme of the display is “A Monumental Christmas.”

Many volunteers have devoted precious hours to decorate the Capitol building for the holidays. As always, they have done an excellent job. 

I hope you will find time this holiday season to come to Pierre to see Linda’s tree and experience Christmas at the Capitol. The display is open from 8 a.m. to 10 p.m., seven days each week through Monday, Dec. 26.

I hope to see you there!

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I reached out to the legislators who are leading the effort to refer the awful initiated Measure 22 to the courts for a review, and Senate Majority Leader Blake Curd responded with the following statement:

I swore an oath to support, defend and protect the Constitutions of the state of South Dakota and the United States. I take that seriously.

Challenging IM 22 is one step in that process as it so blatantly disregards both documents. Its passage has created a constitutional crisis in our state that reaches from the Governor’s chair through every elected official in our state making de-facto criminals out of every elected office holder and giving only two choices; resign the office and abandon the voters or remain and commit a crime. Clear, direct and decisive action was needed without additional delay.

As South Dakota citizens become better acquainted with the multitude of problems created by this law that was forced into South Dakota by activists from out of state, I am confident that they will join us in the effort to correct the problems this initiated measure has created.

Thank you Senator Curd for your efforts against this measure where South Dakotans were victimized by a false advertising campaign

I’m sure this is going to be dissected over the coming weeks, but here’s the primary issues that the litigants have against Initiated Measure 22, according to South Dakota State Law, the State Constitution, and the United States Constitution.

And as you read the problems with Initiated Measure 22, the case they lay out is stronger than you might have thought previous to it being brought.  Here’s the highlights as taken directly from the lawsuit:

Count One- The Ethics Commission violates Article 2 and Article 4, Section 8 of the state constitutionn.

Section 32 of IM22 creates an independent Ethics Commission that is not part of the legislative, executive, or judicial branches of government nor is it allocated to, responsible to, attached to, or overseen by any existing department, agency, or constitutional officer of the State of South Dakota.

Count Two-The Ethics Commission violates the Governor’s executive appointment authority and the separation of powers.

Under Article 4, Section I of the South Dakota Constitution, the Governor is vested with the executive power of the State.   Section 24 of IM22 violates the doctrine of separation of powers, which provides that each department of state government should act independently of the others. Section 24 violates this doctrine because the Governor’s executive authority to make appointments to the Ethics Commission is limited and in effect negated.

Count Three–IM 22 unconstitutionally delegates legislative authority to the Ethics Commission.

The power given to the Ethics Commission in Section 40 of IM22 to “replace or modify” 21 sections of the law constitutes an unlawful delegation of legislative power in violation of Article 3, Section 1 of the South Dakota Constitution.

Count Four-the Ethics Commission cannot lawfully qualify candidates

Section 40(9) of IM22 gives the Ethics Commission the broad power to adopt rules under SDCL Ch. 1-26 to regulate the qualification and certification of candidates.   By giving the Ethics Commission the power to regulate the qualification of candidates for the Legislature and the offices of governor and lieutenant governor, Section 40(9) usurps the constitutional authority of the legislative and executive branches under Article 3, Section 9 and Article 4, Section 2 of the South Dakota Constitution, and thereby violates Article 2 of the Constitution.

Count Five-IM22 unconstitutionally appropriates from the general fund

The annual appropriation made by Section 68 was not made by a two-thirds vote of the members of each house of the Legislature, and is therefore unconstitutional.

Count Six-Section 31 impairs existing contracts

Under Section 31, Curd, Peters, and Soholt must give up either their employment or their elected office to comply with IM22, which substantially impairs their existing contractual relationships. The requirement that citizen legislators or their family members not accept compensation from their primary employer if the employer happens to employ a lobbyist is not reasonably related to the purpose of IM22 of preventing corruption.  IM22 therefore violates the Contracts Clause to the United States Constitution (Article 1, Section 10) and the South Dakota Constitution (Article 6, Section 12).

Count Seven-Section 31 violates the right to free speech

Under Section 31, a lobbyist or employer who hires a lobbyist is limited to contributing $100 to many elected officials running for office, while anyone else is subject to much higher limits. Section 31 thereby restricts and reduces political speech protected by the First Amendment to the United States Constitution and Article 6, Section 5 of the South Dakota Constitution.

Count Eight-the Democracy Credit Program violates equal protection and rights protected by the First Amendment to the United States Constitution and Article 6, Sections 4 and 5 of the South Dakota Constitution.

IM22 does not appropriate enough money for every registered voter to be able to use $100 in democracy credits. In addition, the cap on the democracy credit fund allows only a small percentage of currently registered voters to obtain the face value of their democracy credits.   (Editor’s note – I’ve suspected there would be a problem with this all along!)

Count Nine–the disclosure requirements for independent expenditures violate the right to free speech

Based on the many and short deadlines for disclosure, the information that must be disclosed, and the low disclosure threshold, the disclosure requirements in IM22 are unduly burdensome and thereby violate the right to free speech protected by the United States and South Dakota Constitution because they will burden, chill, and reduce individuals’ and organizations’ ability to engage in political speech and activity and do not have a relevant correlation or substantial relation to a sufficiently important governmental interest

Count Ten-single subject rule

Article 3, Section 21 of the South Dakota Constitution prohibits laws from embracing more than one subject. IM22 is unconstitutional because it addresses multiple distinct subjects including campaign contribution limits, lobbying restrictions, the democracy credit program, and the establishment of an independent ethics commission.

The lawsuit also asks for declaratory and injunctive relief.

Today, the below lawsuit was been filed in South Dakota Circuit Court, Sixth Judicial Circuit, Hughes County. This lawsuit challenges the constitutionality of Initiated Measure 22 on numerous grounds.

Initiated Measure 22 Lawsuit by Pat Powers on Scribd

Boom.

I’m hearing rumors from multiple sources on a lawsuit potentially being filed today against Initiated Measure 22 on the basis of an unconstitutional exercise of spending authority by the measure.

What I’m hearing is that around 20-25 legislators could be named as plaintiffs in this fight against funds being arbitrarily appropriated via a ballot measure.  The question is whether they’ll be throwing only that portion of the measure out, or the whole thing entirely.

Watch dakotawarcollege.com as this story develops.

Delegation Disappointed by Secretary McDonald’s
Decision to Decline Hot Springs VA Tour and Meeting

WASHINGTON — U.S. Sens. John Thune (R-S.D.) and Mike Rounds (R-S.D.), a member of the Senate Veterans’ Affairs Committee, and U.S. Rep. Kristi Noem (R-S.D.) wrote to U.S. Department of Veterans Affairs (VA) Secretary Robert McDonald to express their disappointment and concern over McDonald’s decision to decline a December 2, 2016, tour and meeting at the Hot Springs VA. McDonald will instead travel to the facility on November 30, 2016, a day on which the VA knows Congress will be session, thus preventing Thune, Rounds, and Noem from joining him on that day. By declining the December 2 meeting, McDonald is not fulfilling his commitment to tour the facility with the delegation prior to making his decision on whether or not to shutter the Hot Springs VA. 

“Given the magnitude of the changes the VA’s proposed consolidation would have on veteran care, we request that you not hastily issue a final decision in the waning days of President Obama’s administration,” the delegation wrote. “The uncertainty and distrust this process has sown in the veteran community can only be remedied by thoughtful and studied action. Furthermore, we also maintain that any reconfiguration sought by the VA should be made within the construct of a national realignment strategy for the Veterans Health Administration, as prescribed by law.”

On November 10, 2016, the VA issued its final environmental impact statement on the Black Hills Health Care system, the last formal procedural step prior to McDonald having to make a final decision on the facility’s future. 

Full text of the letter is below, and a PDF of the letter that was sent to McDonald can be found here. 

The Honorable Robert McDonald
Secretary of Veterans Affairs
Department of Veterans Affairs
810 Vermont Avenue, NW
Washington, D.C. 20420

Dear Secretary McDonald: 

We write to express our extreme disappointment and concern that you are not fulfilling your commitment to join the South Dakota delegation in touring the Hot Springs hospital campus prior to making a final decision regarding the proposed consolidation of the Black Hills Health Care System.

In our discussions with you dating back to before your confirmation as the eighth Secretary of Veterans Affairs, we have made clear our expectation that our veterans be given fair and open consideration in this matter. However, in the nearly five years since the VA first made public its desire to consolidate the Black Hills Health Care System, the process has not been sufficiently transparent or responsive to criticisms from veteran stakeholders. Failure to hold a constructive discussion about the Hot Springs campus with the South Dakota congressional delegation and veteran stakeholders, to include addressing the continued discrepancies in the VA’s analysis, prior to issuing a final decision will all but confirm that a reduction in services at the Hot Springs VA has been a pre-determined outcome throughout this process. We are confident that the long-sought visit to the historic Hot Springs VA campus will be most productive if it includes meaningful engagement with the veteran community and the presence of the South Dakota delegation.  

Given the magnitude of the changes the VA’s proposed consolidation would have on veteran care, we request that you not hastily issue a final decision in the waning days of President Obama’s administration. The uncertainty and distrust this process has sown in the veteran community can only be remedied by thoughtful and studied action. Furthermore, we also maintain that any reconfiguration sought by the VA should be made within the construct of a national realignment strategy for the Veterans Health Administration, as prescribed by law. 

Thank you for your timely consideration of this urgent and important matter.

Sincerely,

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