KRISTI NOEM DELIVERS STATE OF THE STATE ADDRESS TO JOINT SESSION OF LEGISLATURE

PIERRE, S.D. (Todd Epp / SDBA) – Governor Kristi Noem delivered her seventh—and likely her last–State of the State Address this Tuesday afternoon in Pierre before a joint session of the 100th South Dakota Legislature.

Noem reflected on South Dakota’s trailblazing history.

Noem honored Gladys Pyle, the first Republican woman elected to the U.S. Senate, and her role as the state’s first female governor.

Noem highlighted progress in education, healthcare, agriculture, and economic development. She noted record-low unemployment and robust workforce growth.

The second-term governor cited the success of initiatives like the “Freedom Works Here” campaign, which she said has reduced job vacancies by over 7,000 positions.

Noem also claims apprenticeship programs are thriving, preparing workers in fields like education and carpentry.

She unveiled plans for Education Savings Accounts, which aim to expand school choice. Noem says they will not harm public school funding.

In agriculture, Noem emphasized growth through partnerships like Bel Brands’ cheese production expansion, benefiting local farmers.

Noem praised efforts in public safety, disaster response, and conservation projects enhancing outdoor opportunities, especially during historic flooding this past summer in southeast South Dakota.

Finally, as South Dakota prepares for the U.S.’s 250th anniversary in 2026 and a big celebration at Mount Rushmore, Noem reaffirmed her commitment to the state’s freedoms and values.

“South Dakota stands as a beacon of resilience and growth,” she declared, promising continued prosperity.

Noem will appear before a U.S. Senate committee later this week to be questioned about her appointment by President-elect Donald Trump as Secretary of Homeland Security.

If she is confirmed, Lt. Gov. Larry Rhoden will be sworn in as the next South Dakota governor during the 2025 legislative session.

 

GOVERNOR KRISTI NOEM’S DHS CONFIRMATION HEARING DELAYED

WASHINGTON, D.C. (SDBA) – The U.S. Senate committee responsible for confirming Governor Kristi Noem’s appointment as the secretary of Homeland Security has postponed her confirmation hearing.

The Senate Committee on Homeland Security and Governmental Affairs rescheduled Noem’s appearance Tuesday evening, which was originally set for the following morning. The governor will now appear before the committee on Friday, Jan. 17, at 9 a.m. ET.

According to Politico, the delay may be related to a holdup in the Federal Bureau of Investigation’s (FBI) processing of her paperwork.

“Gov. Noem has expeditiously completed all her paperwork, but we are waiting for the FBI to complete their portion,” a source told the outlet.

Noem’s rescheduled appearance, just three days before President-elect Donald Trump’s inauguration on Jan. 20, still keeps her on track for a swift confirmation. Trump officials have indicated that Noem is one of several key nominees they hope to fast-track, along with other high-ranking department heads. Secretary of Defense nominee Pete Hegseth, for instance, made his first appearance before a Senate committee on Tuesday, the first of Trump’s nominees to do so.

The news comes just hours after Noem delivered her annual state of the state address to a joint session of the South Dakota State Legislature. In her speech, she discussed her likely appointment to the DHS post, and re-emphasized the need for urgent action to secure the porous U.S.-Mexico border.

“The situation at our southern border is nothing short of an invasion,” Noem said. “Over the last four years, America’s border security has been purposely weakened and ignored.”

 

POPULIST CONSERVATIVE GOALS TOP TOPICS FOR LEGISLATIVE LEADERSHIP IN PIERRE

PIERRE, S.D. (Austin Goss / The Dakota Scout) – A year full of decisive electoral victories in South Dakota has come to a close.

Now, for the conservative lawmakers who rode a wave of anti-carbon pipeline populism into the state Capitol, it’s time to govern.

With the 100th state legislative session beginning on Tuesday, Jan. 14, these newly empowered conservatives say they are wasting no time setting their priorities and working to align those with their caucus members.

Central to their agenda is a slate of proposals aimed at addressing the issues that underscored their rise to power, namely eminent domain reform — intended in part to limit the construction of a proposed carbon capture pipeline through eastern South Dakota.

In November, voters soundly defeated Referred Law 21, a referendum on Senate Bill 201 from the 2024 session. Billed as a compromise by supporters, the measure was intended to give Summit Carbon Solution a clearer path forward to construct its pipeline. The purpose of the pipeline is to capture carbon emitted in regional ethanol plants and transport it to North Dakota for underground burial, an effort to make ethanol more carbon neutral in a world where some blame carbon for climate change.

RL 21, along with five other ballot initiatives covering an array of topics from expanding abortion access to legalizing recreational cannabis, were shot down by voters.

“I am excited and hopeful,” said House Majority Leader Scott Odenbach of Lawrence County, one of many new faces occupying leadership positions after the November caucus elections. “I think the results of the elections in June and November were good for the future of South Dakota and for the kind of policies that I generally support.”

But legislative leadership doesn’t just have their eyes on eminent domain reform. Odenbach says that relieving residents of rising property tax burdens, educational reform à la Gov. Kristi Noem’s proposal to create educational savings accounts, election integrity, government transparency and accountability, and reforms to the ballot initiative process will all be part of a quick-moving session. Leadership expects overall proposed bill totals will be higher than average this year.

“I can read the tea leaves and see where the people want to go,” added Assistant House Majority Leader Marty Overweg, referring to 2024’s election results. “But with great power comes great responsibility.”

In the House, it’s the largest partisan caucus in Pierre since 1952, the Spearfish lawmaker said. 64 Republican members — 32 in the Senate — bring a diverse set of beliefs and opinions to the Capitol’s conversations.

That factionalism has defined biannual primary races, where prospective Republican candidates are oftentimes deemed insufficiently conservative in their pursuit of Pierre.

Odenbach’s no stranger to those wars of words. Through his Liberty Tree PAC, he and his lieutenants orchestrated a shocking primary election night, defeating about a dozen incumbent lawmakers in June — and reshaping the Republican caucus in the process. This sweeping victory paved the way for Odenbach and his supporters to ascend to their new leadership roles, not unlike the path taken during previous power shifts in Pierre.

“I have been incessant ever since I got into the Legislature in 2021 that conservative governance is right, it’s the right and best way forward for the state,” Odenbach added, noting his admiration for the philosophies of current Republican executives like Florida Gov. Ron DeSantis and Virginia Gov. Glenn Youngkin. “It can, will and should be done without any sort of stigma from the past with name calling or ill-thought-out pieces of legislation.”

Senate President Pro Tempore Chris Karr concurs in the House’s calls for unity. A first-term senator who made his name in the House as an appropriator, he says he’s talked almost daily with his fellow members of leadership, to evaluate and re-evaluate priorities and discuss processes.

Some of those leadership conversations have involved Lt. Gov. Larry Rhoden, who is expected to take over before the end of January for the Trump administration-bound Noem. All members of leadership who spoke with The Dakota Scout expressed excitement about Rhoden’s taking over of the second floor of the Capitol — and a belief that his agenda for the 2025 session would not look too different from the one offered by his predecessor.

“I try to go into session each year open-minded, and respectful of others,” Karr said. “I treat everyone exactly the same. You have to lead by examples and expect those things in return. Hopefully, the professional conduct will be contagious, and people will see we have a great way of doing things.”

But with promises to deliver on key issues resting in the balance, the incoming team of leadership is eager to prove not just that it can win, but can govern effectively, too, for 38 days.

“We have to prove we can get stuff done,” Overweg said. “When Republicans controlled both branches of government during the Bush administration and they got nothing done, voters showed their disproval the next time they went to the polls. We will have the same thing here… It is time to put the rubber to the road.”

 

FIRST TIME HOMEBUYER SAVINGS ACCOUNTS, NEW SALES TAXES PROPOSED BY NEBRASKA SENATORS

LINCOLN, NE (Nebraska Examiner) – A state lawmaker seeking a universal homestead exemption for Nebraska homeowners is also proposing tax incentives for new first-time homebuyer savings accounts.

State Sen. John Cavanaugh of Omaha introduced Legislative Bill 151 to create the “First-Time Homebuyers Savings Account Act.” It would allow taxpayers to annually offset a certain portion of federal adjusted gross income into the savings account — $4,000 for married taxpayers filing a joint tax return, or $2,000 for others with the new account.

The maximum values would increase with inflation starting in 2027. Tax-deductible contributions could continue for up to 10 calendar years, or the date of the account holder’s first withdrawal of funds not related to qualified home purchases.

Cavanaugh said the goal is “to make the dream of home ownership a little bit more realistic for more Nebraskans.”

LB 152, also from Cavanaugh, reintroduces a proposal from the Legislature’s summer special session on property taxes. It would offer tax relief targeting owner-occupied properties — a homestead exemption for the first $100,000 of a home’s value — rather than giving relief to “big out-of-state property owners,” such as Ted Turner or Bill Gates.

Cavanaugh estimated it could provide about $2,000 in targeted relief for average homeowners in Douglas County at less cost than similar relief efforts for all owners, including corporations or those living out of state.

Proposed sales tax expansion

Lawmakers also have begun to introduce measures to expand the state sales taxes to more goods or services that currently aren’t taxed, partly to fund new tax relief programs.

Among those are LB 169 and LB 170, from State Sen. Tom Brandt of Plymouth. State Sen. Myron Dorn of Adams is cosponsoring both measures.

LB 169 would extend the tax to two dozen “luxury” items, such as lobbying or dating services, and that Brandt coined as “low-hanging fruit.” The taxes would begin Oct. 1.

The items are similar to those identified by former Omaha State Sens. Lou Ann Linehan and Justin Wayne at the end of the summer special session.

A majority of lawmakers in summer 2024 refused to eliminate some sales tax exemptions, even as the list of possible targets dwindled from more than 120 to 12 by the end of the summer.

Brandt’s list, estimated to bring in $25-30 million annually, includes:

Pet grooming services.

Tattoos and body modification services.

Nail care services.

Hair care and removal services (but not hair cuts).

Skin care services.

Dry cleaning services.

Local passenger transportation by chartered road vehicles, such as limousines and similar “luxury” vehicles.

Sightseeing services by ground vehicles.

Travel agency services.

Weight loss services.

Telefloral delivery services.

Dating services.

Golf, dance and tennis lessons.

Swimming pool cleaning and maintenance services.

Interior design and decorating services.

Lobbying services.

Marketing and telemarketing services.

Chartered flights.

Massage services.

Pinball machines.

Film rentals.

Certain purchases by museums, including fine art.

Historic automobile museum sales, leases, rentals, storage or use.

Admissions to nationally accredited nonprofit zoos or aquariums.

As drafted, the bill would also add sales taxes to household pet veterinary services and to memberships to or purchases by accredited zoos or aquariums. Brandt said that isn’t his intent and that he would amend his bill with help from the Revenue Committee.

In 2024, lawmakers defined massages as part of health care, and Brandt said he and about four or five lawmakers who helped craft the list could find another exemption to remove.

‘A breath of fresh air’

Asked what’s different now from last summer, Brandt said: 17 new senators.

“It’s always good to get a breath of fresh air in the chamber, and I think it’s good that they’ll come in with an open mind, take a fresh look at this, and the fact that we’re starting out $432 million in the hole,” Brandt said, referring to a projected state budget shortfall by summer 2027.

Brandt’s LB 170 would add sales taxes to soft drinks and candy, defined as:

Soft drinks — Nonalcoholic beverages that contain natural or artificial sweeteners. The bill would not tax beverages with milk or milk products; soy, rice or similar milk substitutes; or that contain greater than 50% of vegetable or fruit juice by volume.

Candy — Preparation of sugar, honey or other natural or artificial sweeteners combined with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops or pieces. Such foods that are prepared with flour or that need refrigeration would not be taxed.

Brandt also introduced LB 171, which would pause the state’s multi-year plan to reduce top income and corporate tax rates. Instead of going down to 3.99% by the start of 2027, the top tax rates would freeze at 4.99% for taxable years after Jan. 1, 2026.

“They are forecasting better times ahead, and I certainly hope they’re correct, but on the off chance that that doesn’t happen and they needed to do something, it would be sitting there,” Brandt said of his bill.

Other new proposals

Those proposals were among 67 bills or constitutional amendments introduced Monday, as introductions continue through Jan. 22.

Other items introduced Monday include:

LB 131, by State Sen. Tony Sorrentino of Omaha, would open up state educational savings plans for college to include private elementary and secondary schools.

LB 137, by State Sen. George Dungan of Lincoln, would prohibit homeowners associations from restricting the installation of solar panels or pollinator gardens.

LB 141, by State Sen. Victor Rountree of Bellevue, would require credible reports of child abuse or neglect of a member of a military family to be reported to the appropriate military authorities and any appropriate military family advocacy program established to address child abuse and neglect in military families.

LB 143, also by Rountree, would require local K-12 schools to accept children of military families for preliminary enrollment, regardless of whether the child has an individualized family service plan, individualized education plan, requires special accommodations or services under Section 504 of the federal Rehabilitation Act of 1973 or receives special education.

LB 147, by State Sen. Ben Hansen of Blair, would allow school districts to suspend students in pre-kindergarten through second grade. The prohibition started in 2023 led by State Sen. Terrell McKinney of Omaha. He had argued that it was hard for young students to bounce back after being suspended and that suspensions disproportionately impacted students of color.

LB 155, by State Sen. Brian Hardin of Gering, would allow people to use deadly force to defend their vehicles from carjacking, unless they were the initial aggressor.

LB 165, from State Sen. Megan Hunt of Omaha, would allow municipalities or counties to authorize syringe services programs to distribute hypodermic, sterile syringes to reduce the spread of infectious diseases. The bill addresses one of the concerns Gov. Jim Pillen raised when he vetoed Hunt’s measure in 2024: whether minors could access the programs. One lawmaker who sustained Pillen’s veto, after voting for the bill, co-sponsored Hunt’s measure: State Sen. Rick Holdcroft of Bellevue. Hunt fell three votes short of overriding the veto.

LB 189, by State Sen. Machaela Cavanaugh of Omaha, would create baseline standards for paid family and medical leave, beginning Jan. 1, 2028.

LB 190, also by Sen. Machaela Cavanaugh, would require the Legislature’s Performance Audit Committee to create a rotating schedule so that all state agencies are audited every five years, rather than on a case-by-case basis.

Legislative Resolutions 10CA and 11CA, also by Hardin, would impose consumption or excise taxes on all new goods and services, except groceries (10CA), and eliminate all taxes other than retail consumption and excise taxes (11CA). The effort is the “EPIC Option,” to eliminate property, income and corporate taxes.