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.
HB 1299 allows small lodging establishments (with 15 or fewer sleeping rooms) to apply for a permit to use biological filtration systems in their water recreational facilities, such as pools or spas. These systems filter water naturally using plants, beneficial bacteria, and microbes - without relying on continuous chemical disinfectants - to meet public health and safety standards. To obtain a permit, establishments must submit proof the system meets water quality requirements, pay a $50 fee, and undergo annual department inspections. If an inspection fails, the permit is revoked, and reapplication is barred for one year. The bill requires the department to establish rules for applications, maintenance, and testing procedures.
SB 222 appropriates $10 million from South Dakota's general fund to the Department of Agriculture and Natural Resources for grants supporting water, wastewater, storm water, and nonpoint source pollution projects. It directly affects municipalities and water systems serving residents, with funding calculated as a percentage of project costs based on population: up to 80% for systems serving ≤1,000 people (capped at $9,000/person), 50% for 1,001-2,500 people ($7,000/person), and 30% for >2,500 people ($3,000/person). Projects addressing regionalization, drought resiliency, or environmental compliance may exceed these caps, and engineering studies for long-term water issues can receive up to 100% funding. The bill declares an emergency to expedite funding and requires projects to align with the state water plan.
HB 1159 imposes a moratorium on new or expanded industrial dairy operations exceeding 7,499 cows in South Dakota, blocking permits for such projects after July 1, 2026. Existing permitted dairies can continue operating at their current scale. The moratorium, lasting until June 30, 2028, aims to give the state time to study industrial dairy impacts on the economy and environment, allow counties to update land-use plans (including road agreements and size-based setbacks), and assess watershed resource needs. It directly affects developers seeking to build or expand large-scale dairy farms.
SB 38 increases annual fees for certain concentrated animal feeding operations (CAFOs) in South Dakota that process manure or wastewater under water pollution permits. It raises fees per animal for specific livestock, including dairy cows ($0.43 from $0.17), other cattle/bison ($0.30 from $0.12), and horses ($0.60 from $0.24). The bill directly affects CAFOs operating under water pollution control permits, excluding livestock auctions, out-of-state operations, and Indian country. The changes modify existing fee rates in Section 34A-2-125.1 of South Dakota law.
