This bill introduces a new section to South Dakota's campaign finance laws, specifically addressing the limitations on loans made to candidates or political committees. It stipulates that a candidate or political committee cannot accept a loan from an individual if the total amount of the loan, combined with any contributions from that individual, exceeds the contribution limits established in existing statutes (12-27-7 to 12-27-10). Furthermore, any loan provided by an individual to a candidate or political committee will be considered part of that individual's total contribution limit.

The intent of this legislation is to ensure that loans do not circumvent the established contribution limits, thereby promoting transparency and fairness in campaign financing. By counting loans towards the contribution limits, the bill aims to prevent potential abuses of the system where candidates could receive excessive financial support through loans that would otherwise exceed the legal contribution thresholds.