Bill prohibiting confidentiality settlements heads to House


Bill prohibiting confidentiality settlements heads to House

A bill hampering the legal settlement options available to the state and other political subdivisions headed for the House on Thursday (2/1).


Senate Bill 84, which prohibits the state of South Dakota or any political subdivision from entering into a settlement agreement that includes a nondisclosure or confidentiality clause, passed the Senate on a 21-13 vote.


ASBSD opposes the bill, which now moves to the House for review in committee.


“We understand the intent of this bill, but it is too far reaching,” Sen. Gary Cammack said during the bill’s Senate floor discussion. He added the bill could encourage “malicious phishing expeditions.”


SB 84’s prime sponsor, Sen. Arthur Rusch, told Senators he believed the “public wants to see transparency” as it relates to “settlements.” He added “the interest of the tax payer” was above that of the individuals or parties involved in the settlement.


During SB 84’s committee hearing, ASBSD Lobbyist Dick Tieszen testified it was very important “to weigh” the privacy of the parties involved in the settlement.


“I think there are issues here,” Tieszen said during the committee hearing.


For updates on SB 84, check the ASBSD Blog, Bill Tracker page and Twitter feed.

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