Senate Bill 74 sets out a process for counties to join together to build and operate regional jails. The proposed legislation responds to summer study findings that jail and prison space is inadequate, especially in rural areas.
At a hearing on Thursday, Jan. 26, before the Senate Judiciary Committee, officials from the Department of Revenue expressed concerns.
Sen. Jim Stalzer chaired the summer study on regional jails and is the prime sponsor on SB 74.
He said jails in rural areas are small and deteriorating, and defendants have to be housed elsewhere, often requiring jail staff to drive 100 miles or more to transport them.
“Most of the discussion throughout the summer study from sheriffs and county commissioners and so on was the difficulty of a single county being able to swing the cost of the jail,” he said.
Stalzer said the interim committee concluded that it’s not always feasible for one county to build a jail and then contract with other counties to provide jail space. And so, SB 74 makes way for regional jail authorities.
The South Dakota Department of Revenue opposes the bill.
Kirsten Jasper, general counsel, said the bill creates an additional layer of government that is not necessary, because counties already have the authority needed through joint powers provisions in state law.
Jasper said the bill intends to create a new property tax.
And she said it could violate the uniformity of taxing provision in the state constitution.
“Section 16 of this bill permits the regional jail authorities to pick and choose, essentially, geographical areas within counties in which to impose tax, thereby allowing them to choose what geographical areas that tax would not be imposed on,” Jasper said.
Sen. Stalzer replied that political subdivisions would have to follow the same procedures they currently follow to raise the money: putting a bond issue before the voters.
“Anytime you build a jail and bond, somebody’s going to increase their property taxes,” he said. “This is not imposing any kind of a new tax on anybody.”
The committee gave the bill a do-pass recommendation, with the understanding it can be amended.
