Technology

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.

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.

SB 170 requires businesses to provide a clear, upfront notice when consumers interact with chatbots, AI agents, or other technologies designed to mimic human conversation, preventing deception. It directly affects businesses using such technology in commercial transactions, mandating disclosure before interaction begins. Violations could result in actual damages, $1,000 per violation, or class-action limits of $10 million, with the attorney general able to seek enforcement. The law aims to ensure transparency in digital consumer interactions without restricting legitimate business use.