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passed · South Dakota · House Feb 18, 2026

HB 1318: prohibit natural asset companies.

HB 1318 prohibits South Dakota from engaging with or investing in "natural asset companies," defined as for-profit entities that manage ecological resources like soil, biodiversity, or water quality for financial gain. The bill bans state contracts, investments, and bonds involving these companies, prohibits them from operating in the state, and voids any contracts entered after July 1, 2026. It also requires the Secretary of State to revoke business licenses for such companies and prevents natural assets (e.g., land, water rights) from being transferred to them. The law applies broadly to corporations and LLCs classified as natural asset companies but excludes state retirement systems and investment councils.
Jana Hunt (R) Carl Perry (R) Julie Auch (R)
passed · South Dakota · House Feb 18, 2026

HB 1268: repeal capital punishment.

HB 1268 would repeal South Dakota's death penalty by removing it as a sentencing option for Class A felonies, including first-degree murder. The bill directly affects individuals convicted of capital offenses, replacing the death penalty with life imprisonment as the maximum sentence. Key provisions amend sections of the criminal code (specifically §§ 22-6-1, 22-16-12, and others) to eliminate the death penalty from Class A felony sentencing and adjust felony classifications accordingly. This change would apply to all future cases, meaning convicted individuals would no longer face execution as a possible penalty for the most serious crimes.
Nicole Uhre-Balk (D) Tim Reisch (R) Eric Emery (D) William Shorma (R) Liz Larson (D)
passed · South Dakota · House Feb 18, 2026

HB 1252: provide for indigent legal services by the Commission on Indigent Legal Services, and to provide an appropriation therefor.

HB 1252 requires South Dakota counties and municipalities to provide legal representation for people who cannot afford a lawyer (indigent defendants) through three methods: establishing public defender offices, using court-appointed attorneys via a coordinated plan, or contracting with licensed attorneys. It specifies that counties pay for these services, with reimbursement possible by deducting costs from defendants' funds (as court costs or probation conditions) or through a state fund that redistributes payments based on county spending. The bill also creates a lien on defendants' property (capped at $1,500 for minors' parents) to recover costs, and mandates how counties must report and enforce these reimbursements.
Greg Jamison (R)
passed · South Dakota · House Feb 18, 2026

HB 1295: revise provisions for the acquisition of highway easements and rights of way.

HB 1295 revises how South Dakota's Department of Transportation acquires highway easements and rights of way, including for borrow pits (used for construction materials). It requires the Department to provide landowners with a detailed notice explaining the purpose, property description, and promise of "just compensation" before acquisition. The notice must be filed with the county register of deeds and shared with all known property interest holders. If negotiations fail, the bill directs the Department to follow standard condemnation procedures under existing law. This bill directly affects landowners near highway projects and clarifies the Department's acquisition process.
Travis Ismay (R) Jana Hunt (R) Sam Marty (R) Carl Perry (R)
passed · South Dakota · Senate Feb 18, 2026

SB 241: require that the Department of Revenue provide an annual report to Indian tribes regarding certain tax collections.

SB 241 requires South Dakota's Department of Revenue to provide annual reports to Indian tribes with tax collection agreements. The bill mandates that by December 1 each year, the department must report estimated tax collections from the prior year (distinguishing between remote and nonremote sellers) for tribes in 20 specific counties, including Oglala Lakota and Bennett. It also requires retroactive reports for 2020-2025 by December 1, 2026. If data is unavailable, the department must develop a methodology to collect it. This bill directly affects tribes in those counties by increasing transparency around tax revenue collected from tribal members and sales within their areas.
Tamara Grove (R)
passed · South Dakota · House Feb 18, 2026

HB 1285: amend provisions pertaining to the timing of municipal and school district elections.

HB 1285 amends South Dakota election timing rules for municipalities and school districts. It requires special elections on specific dates (30-50 days after petition) and allows certain questions - like annexation, dissolution, or consolidation - to be combined with regular annual elections if filed within 90 days before them. The bill also sets deadlines for holding elections (e.g., annexation votes must occur within 60 days of resolution) and clarifies when petitions must be filed to align with existing election cycles. This directly affects local governments managing elections by standardizing procedural timelines.
Heather Baxter (R) Carl Perry (R) Dylan Jordan (R) Tim Goodwin (R)
passed · South Dakota · House Feb 18, 2026

HB 1301: limit costs and risks associated with electricity use by data centers and impose a moratorium.

HB 1301 requires large data centers (those with 20+ megawatts peak demand) in South Dakota to pay the full cost of electricity infrastructure upgrades they necessitate, including decommissioning expenses, and prohibits shifting these costs to other utility customers. Key provisions include mandating that data centers submit annual reports detailing their energy use, infrastructure needs, and renewable energy commitments, and requiring electric utilities to publish annual reports on large data center load forecasts and associated costs. The bill effectively imposes a moratorium on new large data center projects until these reporting and cost-sharing requirements are met. It directly affects large data center operators and electric utilities, ensuring they bear their own infrastructure and decommissioning costs without burdening other retail customers.
Liz Larson (D) Erin Healy (D) Erik Muckey (D)
passed · South Dakota · Senate Feb 18, 2026

SB 235: protect residents from increased utility costs and utility shortages caused by data centers, to clarify authority to regulate data centers, and to modify provisions pertaining to the purchasing of goods and services by a data center.

SB 235 prevents utilities from raising residential electricity rates to cover data center costs, requiring data centers to pay all associated infrastructure expenses directly. It mandates data center operators to report water usage to local providers and the state board, with public disclosure of semi-annual water consumption data. The bill preserves local government authority to regulate data center construction and operations, and exempts data center purchasing from certain taxes. These provisions directly affect residents (by shielding them from cost shifts), data center operators (requiring direct payment and reporting), and local governments (retaining regulatory power).
Casey Crabtree (R)
passed · South Dakota · Senate Feb 18, 2026

SB 234: modify provisions pertaining to the purchasing of goods and services related to data center operations.

This bill exempts sales tax on enterprise information technology equipment and computer software purchased for use in South Dakota's qualified data centers. It directly affects data center owners, operators, or tenants (referred to as "qualified businesses") who meet specific criteria, such as having facilities classified as real property subject to taxation and equipped with fire suppression systems. The key mechanism requires businesses to submit documentation to the Department of Revenue to verify eligibility and maintain annual certification. To retain the exemption, businesses must also ensure electric service agreements avoid shifting costs to other customers and confirm water usage compatibility with local providers. The tax exemption applies to equipment like servers, cooling systems, power infrastructure, and security systems used exclusively in these facilities.
Casey Crabtree (R)
passed · South Dakota · Senate Feb 18, 2026

SB 232: impose a one-year moratorium on the construction or expansion of hyperscale data centers.

SB 232 imposes a one-year moratorium (through June 30, 2027) on building new hyperscale data centers or expanding existing ones to meet the hyperscale definition in South Dakota. A "hyperscale data center" is defined as a facility with peak electrical demand of 50 megawatts or greater, used for storing, managing, and processing large volumes of electronic data. The moratorium applies to both new construction and expansions that would cause a facility to reach or exceed the 50-megawatt threshold. This bill directly affects data center developers and operators planning projects meeting the specified size criteria.
Phil Jensen (R) Taffy Howard (R)
passed · South Dakota · Senate Feb 18, 2026

SB 128: update provisions related to certain large-use customers of utilities.

SB 128 requires data centers (defined as facilities managing electronic data) to notify local water providers about projected water use and implement closed-loop cooling systems that limit net water withdrawal. It prohibits these facilities from exceeding water usage limits after residential and essential public services are allocated, and mandates reduced use during declared water shortages. Data centers must submit quarterly public reports detailing water usage and compliance. The bill directly affects large data center operators in South Dakota, focusing on sustainable water management for this growing sector.
Al Novstrup (R) Bobbi Andera (R) Heather Baxter (R) Julie Auch (R) Lauren Nelson (R)
passed · South Dakota · Senate Feb 18, 2026

SJR 503: applying to the United States Congress for a convention of the states to propose amendments to the United States Constitution regarding the imposition of fiscal restraints on the federal government, further limiting the power and jurisdiction of the federal government, and limiting the terms of office for members of Congress and other federal officials.

South Dakota's Senate Joint Resolution 503 applies to the U.S. Congress to call a convention of states for proposing constitutional amendments. The resolution specifically requests amendments to impose fiscal restraints on federal spending, further limit federal power and jurisdiction, and establish term limits for members of Congress and other federal officials. It includes conditions requiring the convention to be limited to these topics only and ensuring Congress performs only a ministerial role in convening it. This procedural resolution does not create new law but initiates a state-level step toward potential constitutional change under Article V of the U.S. Constitution.
Kevin Jensen (R) Josephine Garcia (R) Les Heinemann (R) Jim Mehlhaff (R) Aaron Aylward (R)
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