South Dakota: Eminent domain bill signed, Brand bills die
No eminent domain for private gain
Governor Rhoden signed a South Dakota bill to prohibit the use of eminent domain for carbon oxide pipelines on March 6, 2025. The House approved the bill 49-19 and the Senate approved it in a 23-12 vote.
Eminent domain provides public entities the ability to condemn private land when voluntary agreements can’t be reached for easements.
House Bill 1052 reads: “Notwithstanding the provisions of any other law, a person may not exercise the right of eminent domain to acquire right-of-way for, construct, or operate a pipeline for the preponderant purpose of transporting carbon oxide.”
Representative Karla Lems from Canton and Senator Mark Lapka from Leola were the prime sponsors of the bill.
On the Senate floor, Lapka urged support for the bill, saying it would create the constitutional certainty and security of property ownership in South Dakota.
He mentioned that many of the bill supporters who attended the March 4, 2025, senate hearing, traveled many miles to attend which he believed was an indication of their passion for that issue.
“This bill will not stop any projects from taking place in South Dakota. This is not a ‘kill shot,’ this is not a ban, this is a requirement that good negotiations and good faith will have to take place between a willing buyer and a willing seller,” he said.
Lapka pointed out that Summit Carbon Solutions had sued 160 South Dakotans for eminent domain in order to gain access to land for a carbon pipeline.
“These individuals have spent millions of dollars out of their own pockets to represent their own interests” against a multi-national company, he said.
Lapka said legislators often discuss the concern over the government or the state of South Dakota being sued. “When are we going to protect the people from getting sued?” he asked.
Senator David Wheeler from Huron proposed an amendment that would allow for carbon pipeline companies to utilize eminent domain if a threshold of 75 percent of land had been signed up via voluntary easements.
Senator Crabtree from Madison said that he cares about the property rights of “those affected” but also about the property rights of every farmer in the state who is being affected by someone who “doesn’t want to move forward.” He said he wants people to be able to participate in the pipeline and in President Trump’s “energy revolution.”
Wheeler’s proposed amendment died with a 14-21 vote.
Yeas: Beal, Crabtree, Davis, Deibert, Duhamel, Kolbeck (Steve), Mehlhaff, Miskimins, Reed, Sauder, Schoenfish, Vilhauer, Wheeler, and Zikmund,
Nays: Blanc, Carley, Foster, Grove, Hohn, Howard, Hulse, Jensen (Kevin), Karr, Lapka, Larson, Marty, Nelson, Otten, Perry, Peterson (Sue), Pischke, Rohl, Smith, Voight, and Voita.
In Senate discussion about the original bill, Senator Mehlhaff from Pierre said that 1052 sets a “terrible precedent” and tells developers that South Dakota “is not open for business.”
“It tells them that if enough people get together and raise enough ruckus, they will come to Pierre and cut the legs off your project.”
He said that Summit has paid out over $72 million in voluntary easements. “We’re talking as if landowners who end up in court are being bullied,” he said.
“We don’t want landowners to become a ruling class that shuts down opportunities for welders, construction workers and heavy equipment operators. This is a bad bill. It sets a bad precedent and I’d urge you to vote no,” said Mehlhaff.
Senator Lapke responded that in his opinion, it’s “not ok” to take away someone’s rights for another’s personal gain. “I’m not ok with that. I don’t want to go down the path that eminent domain is the way to do business,” he said. Lapke said once that door is opened, it’s hard to shut. “There is always a bigger fish. Let’s say a big box store comes into your town and they want to build a parking lot, they can just condemn the property next to them,” he said.
HB 1052 passed in a 23-12 vote.
Votes included:
Yeas: Blanc, Carley, Deibert, Foster, Grove, Hohn, Howard, Hulse, Jensen (Kevin), Karr, Lapka, Larson, Marty, Nelson, Otten, Perry, Peterson (Sue), Pischke, Rohl, Smith, Voight, Voita, and Zikmund
Nays: Beal, Crabtree, Davis, Duhamel, Kolbeck (Steve), Mehlhaff, Miskimins, Reed, Sauder, Schoenfish, Vilhauer, and Wheeler.
Brand Board bills
The Senate Agriculture and Natural Resources Committee killed two bills affecting the South Dakota Brand Board: HB 1266 and HB 1213.
In a 3-4 vote, they killed HB 1266 which would have moved the South Dakota Brand Board out of the purview of the South Dakota Department of Agriculture and Natural Resources and under the South Dakota Department of School and Public Lands.
Senator Jana Hunt from Dupree, sponsor of HB 1266, said the bill was an effort to change the direction of the Brand Board. She explained that it didn’t change the appointment process, but that it would require the Brand Board to report its financial information to the Director of School and Public Lands, who is an elected position rather than the Director of Agriculture and Natural Resources which is an appointed position.
She said codified law has not been followed and pointed out multiple infractions including: lack of timely appointments or timely Senate approvals of appointees and lack of departmental reporting to the House Agriculture Committee and more.
She said the DANR did not report to the House Ag committee as required by law until HB 1266 was dropped.
“Producers are frustrated. We are seeing an attempt to increase fees but not having financial transparency,” she said.
“We have cattle theft and we don’t feel like we’re heard or seeing forward momentum in trying to locate cattle,” said Senator Hunt.
She said that the bill wouldn’t address all of these issues, but that the Secretary of School and Public Lands had made a commitment to approve a third-party audit, which is a step toward resolution.
Senator Spencer Gosch also spoke in favor, along with Doris Lauing, South Dakota Stockgrowers Association, Rapid City; Raydelle Sperle, South Dakota Stockgrowers Association, Rapid City; Mitch Richter, South Dakota Farmers Union, Huron; Representative Liz May, Kyle; Bryce Dibbern, South Dakota Livestock Auction Markets Association, Interior; Amber Haskew, Self, Mobridge
Bryan Hanson, Self, Ft. Pierre; Chuck J. Willard, South Dakota Stockgrowers Association, Rapid City; Ray O’Day, Self, Blunt; Tom Costello, Self, Newell.
Opponents included:
Megan Goltz, Governor’s Office; Hunter Roberts, Secretary, Department of Agriculture and Natural Resources; Taya Runyan, South Dakota Cattlemen’s Association, Pierre; Matthew M. Bogue, South Dakota Farm Bureau Federation, Huron; Todd Mortenson, Self, Hayes; Debbie Trapp, South Dakota Brand Board; Matt Clair, Self, Ft. Pierre; Scott Vance, South Dakota Brand Board.
Roberts said he is a rancher who has cattle West of the river and sometimes sells cattle at Ft. Pierre, South Dakota.
He said DANR has a “vested interest in the success of the Brand Board,” testifying that he has hosted meetings with the 7 major ag organizations to discuss brand issues.
He criticized the Brand Board (this was likely a slip of the tongue – he meant to say South Dakota Stockgrowers Association) for bringing a bill last year to require that the Brand Board members be elected rather than appointed.
He claimed that the Stockgrowers will continue to bring bills in order to gain more influence over the Brand Board and he pointed out that the Stockgrowers are not the only organization with west river cattle owning members.
“But for some reason they think they are,” he said.
He talked about the state taking over the brand inspection program in 2008 and claimed that they retrained the brand inspectors at that time.
After the 4-3 vote to send the bill to the 41st day (yeas: Davis, Duhamel, Rohl Jensen, nays: Marty, Voight Pischke) which killed HB 1266, the Senate Ag Committee killed HB 1213 in a 5-2 vote. That bill would have raised the cap on the brand inspection fee from $1 to $1.35. Only Senators Davis and Duhamel voted in favor of the inspection cap increase. Pishke, Marty, Rohl, Voight and Kevin Jensen voted against it.
The Senate Ag Committee approved Brand Board nominees Jarrod Johnson from Garretson and Haven Stuck from Rapid City. They did not approve Lyle Spring from Union Center. The full Senate will vote on each appointee. Brand Board members Scott Vance from Faith and Jake Longbrake from Dupree were approved by the Senate earlier in the session.
