This bill amends existing state consumer protection laws to add requirements for age verification and parental consent for application stores, which are digital platforms where users download software applications. The legislation would require these stores to verify the age of users and obtain parental consent from minors before allowing them to access or download applications. It also establishes penalties for businesses that fail to comply with these new verification and consent requirements. The bill does not create new consumer protection categories but rather modifies existing deceptive trade practices provisions to include digital application store compliance.
SB 205 revises drone registration fees in South Dakota, charging 1.5% of purchase price for agricultural drones and 2% for all other drones. The collected fees fund a new "drone aviation fund" administered by the Board of Technical Education to support drone training grants at state technical colleges. This bill directly affects drone owners (especially agricultural users) by changing their registration tax rates and creating a dedicated funding source for drone industry workforce development. The fund will receive all drone registration fees and interest, with expenditures requiring annual budget approval. The bill does not apply to small unmanned aircraft systems covered under federal regulations.
HB 1309 restricts online services from collecting or using personal data of users under 16 years old in South Dakota. It requires operators (like apps or websites) to delete such data within 14 days of identifying a minor user, unless parental consent is obtained for 13- to 15-year-olds or the processing is strictly necessary for essential purposes like security, legal compliance, or providing requested services. The law bans data use for advertising, marketing, or third-party sharing without consent and allows the state Attorney General to enforce it through fines up to $5,000 per violation. This directly affects minors under 16 and online platforms targeting them or collecting their data within South Dakota.
HB 1237 requires app stores and developers to verify the age of users before they can access applications, with specific rules for children under 16. App stores must determine age, obtain parental consent for minors, provide digital age signals (e.g., 13-15 or 16-17), and enable parental controls for time limits and activity monitoring. The law directly affects app stores (manufacturers), app developers, and users under 16, applying to platforms distributing apps like mobile app stores. Violations could result in $5,000 civil penalties per affected child, enforced by state attorneys general.
HB 1314 modifies South Dakota's election equipment rules to enhance security and standardization. It prohibits internet-connected voting systems, requires vendors to submit software source code for independent review before certification, and mandates annual system updates. The bill directly affects election vendors (who must provide source code and maintain systems), the State Board of Elections (which must certify systems), and local jurisdictions (which must use updated systems or conduct manual counts). Systems approved before January 1, 2026, expire July 1, 2026, and vendors must cover costs if manual recounts are needed due to outdated equipment.
HB 1229 requires app stores (manufacturers) and app developers to include specific features for user transparency. Specifically, app stores must list all purchasable goods/services with prices on app pages, and developers must provide an easy-to-access feature allowing users to view those prices and cancel subscriptions. The bill applies to all app stores and developers operating in South Dakota, with requirements deemed "technologically feasible." Violations trigger a 90-day cure period before the attorney general can impose civil penalties up to $1,000 per incident. The law focuses on mandatory disclosure and user control, not on creating new private legal claims.
HB 1155 amends South Dakota's investment rules to allow the state to allocate up to 10% of its investment funds into Bitcoin. The bill specifically defines Bitcoin as a digital asset meeting strict network criteria (starting from its 2009 genesis block) and requires all Bitcoin holdings to be stored through secure custody solutions or qualified custodians. It applies only to state investment funds, not individual citizens or private entities, and explicitly prohibits investments in other digital assets like cryptocurrency exchanges. The bill does not authorize new spending but modifies existing investment guidelines to include Bitcoin under defined security and limit requirements.
HB 1005 exempts sales and use taxes on data center equipment and software for businesses operating qualified data centers in South Dakota. It specifically covers servers, cooling systems, power infrastructure, security systems, and related technology used in facilities meeting strict criteria (e.g., built between 2026-2036, meeting fire safety standards). Qualified businesses must verify eligibility with the Department of Revenue and maintain compliance with electric utility agreements and water usage requirements. The tax exemption lasts 50 years from the facility's construction permit date. This directly affects data center operators seeking to reduce operational costs in South Dakota.
