South Dakota is not a state that is known for open access to public records.
But it is now plowing new ground in ridiculous reasons for keeping public documents secret. Bret Afdahl, the director of the South Dakota Division of Banking, refused a request from the Argus-Leader newspaper in Sioux Falls for the applications that payday loan and title loan companies submit to acquire licenses in South Dakota.
Afdahl denied an Argus Leader request for the applications, in part by quoting a law whose title notes that banking division records are "open to public inspection."
Yeah, it's pretty bizarre. But it gets really absurd.
The Argus Leader also requested all consumer complaints received by the division since Jan. 1, 2014. Afdahl denied the paper's request for those records, arguing they aren't in the public interest and could be used to harm people or banks.
So, apparently the public doesn't have a right to know about what kind of complaints have been filed against payday lenders because it might make those lenders look bad.
So I guess only sunshine and happy news about banks is permitted to be made public in South Dakota.
This matter is especially relevant today because the issue of reining in payday lenders may be on the ballot soon in South Dakota.
The decision not to release the records comes amid mounting pressure on the payday loan industry in the state. A broad coalition is in the final stages of launching a statewide ballot initiative to cap interest rates at 36 percent. If the group succeeds in getting enough signatures, the issue would go to voters in the 2016 general election.
"Once this thing gets on the ballot, we win," said Rep. Steve Hickey, a Sioux Falls Republican who is helping spearhead the effort.
Indeed.