House defeats bill for new men’s prison

PIERRE, S.D. (KELO) –The fate of one of South Dakota’s largest proposed projects in state government history took a big hit Friday in Pierre.

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The South Dakota House of Representatives has decided that it’s still too early for a final decision on whether a 1,500-bed men’s prison should be built in Lincoln County — and possibly too early for any new prison at all.

After an hour-long debate, the amended version of House Bill 1025 failed by a 34-35 vote with one lawmaker excused. A motion to reconsider was noted, but the bill remains dead until the next legislative day scheduled for Monday.

Full vote on House Bill 1025 on Friday, Feb. 21.

“That was amazing. We’re not across the finish line, but we’re closer than we were,” Rep. Karla Lems said to House Speaker Jon Hansen minutes after the vote.

The amendment to HB1025, proposed by Republican Rep. Jack Kolbeck changed the bill to just transfer $148 million from the general fund to the state incarceration fund. Kolbeck’s amendment was passed by a roll call vote of 37-32.

Despite the amendment, lawmakers held a lengthy discussion on the original bill about constructing a new men’s prison with plans in Lincoln County. Everything now is in a scramble. Rhoden was off attending the National Governors Association winter meeting in Washington, D.C.

The House Freedom Caucus opposes the governor’s plan and members of the group stood in support when a roll-call vote was requested on Kolbeck’s amendment.

Kolbeck said the bill as amended would add $148 million to the incarceration construction fund. He said many members have told him they want a new prison. “Well, this amendment allows the discussion to continue,” he said.

“This has been a long discussion for the last many months, many months. I know for some of you it’s been a tough decision. I know for some of you it hasn’t been a tough decision,” Kolbeck said.

Rep. Lems, who lives in Lincoln County, said there are still many unanswered questions about the prison plan. Lems said she would vote no and wanted to know the new plan before putting any more money in a savings account.

Lems added, “To me this whole prison project, I have an acronym for it, CPR. It’s on life support.” The C stands for common sense, she said. “P is for price,” she continued, questioning whether South Dakota can afford an $825 million project at this time.

Lems also mentioned the ongoing additional operation cost of more than $20 million for the new prison. “R for recidivism,” she said, saying the current recidivism rate is 43%.

Republican Rep. Taylor Rehfeldt, who requested the reconsideration, said questions have been answered. She said it’s “very clear” South Dakota needs a new prison. She said it “absolutely” will be expensive at $825 million and said it “probably” would be more if delayed, regardless where the location is.

The guaranteed maximum price expires on March 31.

Republican Rep. Phil Jensen asked how many bidders were on the proposed project. Republican Rep. Will Mortenson said that discussion was not germane to the amended bill.

“We know what we are doing. We’re not stupid. We’re talking about money for a prison,” Republican Rep. Spencer Gosch countered. Speaker Hansen said he would allow the Jensen comments.

Jensen said he liked the CPR acronym, saying C stands for corruption, P for profit, and R for regret.

Republican Rep. Kathy Rice asked whether the transfer would allow construction to start without another legislative vote. Kolbeck said there would be roughly $790.1 million if the transfer to incarceration fund was approved, but the funding would be separated from the construction while discussion continued on the overall project.

Republican Rep. Aaron Aylward, leader of the House Freedom Caucus, recalled a floor speech that Republican Rep. Marty Overweg gave two years ago, regarding HB 1017 in 2023. Aylward said Overweg correctly predicted what was going to happen.

Aylward, who lives in Lincoln County, said there should have been more transparency. He thanked the Harrisburg city council for turning down an offer from the state Dept. of Corrections to connect to the city’s water system.

“I hope we can just stop this thing dead in its tracks, regroup and put it someplace else,” Aylward said.

Republican Rep. Will Mortenson said, “This prison is a need, it’s not a want, but I would tell you it’s an unwanted need.” He said he’d rather be using the money for other needs or giving it back to taxpayers. “The neighbors sure don’t want it,” he said about Lincoln County.

“It’s a natural thing to not want a prison in your backyard. I don’t blame them,” Mortenson said. The question now is whether to build a prison, and not necessarily in Lincoln County, he said. He doesn’t know where it might go, but said it will be somewhere around Sioux Falls.

Republican Rep. Logan Manhart spoke against the project. He said he had to vote “no” on giving money back to taxpayers on other bills this session, because there is no money. He called the project a “Ritz Carlton” prison.

Democratic Rep. Peri Pourier said South Dakota needs a new prison but asked whether a 1,500-bed prison is necessary. She said South Dakota continues to have felony ingestion as a crime. She asked why the choice is between a prison and pet projects, rather than spending for kids.

“We’re putting nearly a billion dollars on betting that we’re going to fill up that prison,” Pourier said. “We’re going to have to fill it to justify the expense. I sit on Judiciary (Committee) and every single year we put on a new felony.”

“I don’t want to fight over pet projects. I don’t want to fight over a prison. I want to fight for our kids,” Pourier said.

Republican Rep. Tim Goodwin said the Legislature can decide after the money is transferred whether to build a prison. “If we don’t transfer the money, that means logically the prison is going to be dead,” he said.

Republican Rep. Dylan Jordan said the House is playing games on the biggest project in state government’s history.

Republican Rep. Drew Peterson said Springfield state prison is in his legislative district and the Springfield mayor supports constructing the new prison.

Democratic Rep. Erik Muckey said there needs be discussion of how to keep people out of prisons. The current state penitentiary in Sioux Falls is in his legislative district. He said the vote today is on a transfer, not a commitment to a plan.

Muckey said he dislikes using the word ‘investing’ in corrections. “It’s not an investment. It’s an expense.” He encouraged House members to “think of your humanity” when making the vote.

Republican Rep. William Shorma said the disagreement is over location. “As far as funding, we’re not committing the funding today,” he said. Waiting a year or two increases the cost, he said. He spoke in favor of the amendment. “So we can decide what to do with it,” he said.

Republican Rep. Josephine Garcia asked whether the project would continue to move forward in Lincoln County. Kolbeck replied that this vote isn’t on construction or location. She said that he didn’t answer her question.

Kolbeck said the discussion Friday was only about transferring the money. He said the final argument is where it will go. He said that can be decided later.

Republican Rep. Julie Auch said, “I think part of our problem in this room is trust.” She questioned why the project is costing twice as much per bed as other prisons recently built or planned in other states. She said there’s been no agreement on structure or process or treatment. She said Texas recidivism is 25%, less than South Dakota.

Auch suggested a staged approach instead. She estimated it would cost “a billion dollars” when all the roads and other expenses are added. “I just think it’s a mistake,” she said.

Republican Rep. Liz May recounted the history of accumulating $600 million-plus in the incarceration construction fund that began in 2022, saying the money was “untargeted.” May complimented Pourier for her passionate remarks.

“We call ourselves fiscally responsible. With that comes obligations,” said May, who lives in Oglala Lakota County. “A prison ain’t gonna help anybody in my county.” She added, “I don’t want this to go on. I don’t want it to leave this floor. I want it dead here.”

Republican Rep. Chris Kassin said state government has $331 million in one-time revenues available. “I find this to be a responsible transfer of funds,” he said. “There is nothing that says these funds are locked in and have to be spent.”

Full vote on House Bill 1025 on Friday, Feb. 21. Full vote on Kolbeck amedment to House Bill 1025.

Prison bill background

The prison has a guaranteed maximum price of $825 million. The bill passed out of Joint Appropriations Thursday, with no recommendation. The project’s guaranteed maximum price of $825 million however expires at the end of March.

Republican Gov. Larry Rhoden used his weekly legislative-session news conference on Wednesday to talk about the need for the new prison.  Rhoden said delaying the project for a summer study would cost South Dakota taxpayers an additional $40 million for inflation.

A two-thirds majority — 47 in the House and 24 in the Senate — is needed in each chamber for the legislation to reach Rhoden’s desk.

If the bill gets the governor’s signature, the prison in Lincoln County would be set for a tentative opening in 2029.

Republican Sen. Kevin Jensen is leading the resistance to the new prison, which would be located in his legislative district. He has introduced two pieces of legislation that would halt, at least temporarily, the spending of money that was earmarked in 2023 and 2024 for the prison project.

Jensen’s Senate Bill 125 calls for establishing an incarceration task force that would independently review the construction and improvement of state correctional facilities. The task force would issue a report no later than December 1, 2025.

KELOLAND News has been following the new men’s prison developments since the Lincoln County site was announced in October 2023.