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.

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.

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.

SB 66 prohibits South Dakota election officials from using automatic tabulating equipment or electronic ballot marking systems for any election. The bill requires all ballots to be hand-counted manually in public view, replacing electronic processing with paper-based counting. It directly affects county auditors, precinct election boards, and all election administrators responsible for ballot handling and counting. The law mandates that ballots must be printed on paper (not processed electronically), with all vote counts performed manually after polls close, eliminating electronic tabulation entirely.