The state Senate voted unanimously to grant the state auditor the right to access and investigate agency records on Thursday — 24 hours after shooting down the idea by a single vote. 

The Wednesday loss for Senate Bill 60 at the state Capitol in Pierre came amid confusion over a compromise amendment meant to appease the concerns of the governor’s office. The bill was introduced by Attorney General Marty Jackley and supported by Auditor Rich Sattgast. 

Several lawmakers said Wednesday from the Senate floor in Pierre that all three offices had agreed to remove the audit and investigatory authority of the auditor from the original bill, so as not to duplicate the work of the attorney general. 

Others signaled that such a move would defang the bill, and that they preferred the attorney general-supported version that cleared a Senate committee on Jan. 27.

The auditor and attorney general sat in the gallery for the second round of debate on the bill Thursday. Jackley brought it to lawmakers at the start of session in the face of the myriad scandals involving former state employees.

• Ex-Department of Social Services (DSS) employee Lonna Carroll is accused last July of embezzling $1.8 million from the state.
• Former Department of Revenue employee Sandra O’Day allegedly created 13 fake vehicles to help her secure $400,000 in loans before her death last year. Two more former revenue department employees, Lynne Hunsley and Danielle Degenstein, were later charged for malfeasance.
• Renee Strong faces felony charges for allegedly submitting falsified reports of food-service health inspections for the Department of Public Safety.
• Former DSS employee Amalia Escalante Barrientos pleaded guilty last month to a misdemeanor for using a voucher intended for a foster family to buy groceries for herself.

Senate revives auditor authority bill

After the Senate voted to reconsider SB 60 on Thursday, Sen. Jim Mehlhaff, R-Pierre, moved an amendment similar to the one he’d spoken against the day before. There was “quite a bit of confusion” Wednesday about Jackley’s position on the compromise amendment, he said, but “this is very much supported by the attorney general,” as well as the governor’s office and auditor.

Currently, the state auditor doesn’t have the authority to access agency records and assess their financial and operational fidelity. In its original form, SB 60 empowered the auditor with access to the financial and internal records of state agencies for the purposes of conducting audits, and to conduct investigations.

The governor’s office had argued that an elected state auditor doesn’t necessarily have the professional expertise to conduct agency audits. There were also concerns about duplicating investigative efforts.

Thursday’s amendment still removed audit authority, but preserved access to records, as well as the ability to investigate financial transactions. In the event malfeasance or irregularities emerge, the auditor would report them to the attorney general.

Senate President Pro Tempore Chris Karr, R-Sioux Falls, said he was pleased to see the state office-holders compromise with the legislature to ease their worries about the bill’s value as a bulwark against misconduct.

“Do I still like the original bill? I do. Is this amendment, I think, a compromise we should move forward? I think it is,” Karr said.

Wednesday’s version of the bill died 17-18; Thursday’s iteration passed 35-0.

The Senate did vote Wednesday to advance another Jackley-backed transparency bill, Senate Bill 61, which seeks to strengthen the state’s internal control board. 

Senate Bill 60 now moves to the state House of Representatives.