South Dakota’s legislative session has wrapped, with the final day of the 38-day session scheduled for March 31, which is designated for gubernatorial vetoes.
A bill prohibiting the use of eminent domain by carbon pipelines has been signed by the governor. A bill that would have expanded eligibility in the state’s child care assistance program to people working as child care employees passed both chambers but was vetoed by the governor. The bill to revise and repeal the functions of the state library passed after being amended to restore some of its functions and its ability to seek federal funding; however, the library still received an $825,000 cut in the state budget.
See below for more information on the bills we are following and to read our full update.
Thank you for following along with us over the course of the session. We value your input. I can be reached at [email protected] or 605.240.0039.
Energy
House Bill (HB) 1007 (brought at the request of the Public Utilities Commission, or PUC) — Monitor: This bill would permit the PUC to recover reimbursement costs from an applicant in a timely manner. Current law permits the PUC to recover actual costs for energy siting dockets for projects such as transmission lines, wind, solar, and pipelines but states “the commission must seek reimbursement for those costs during the next regular legislative session.” This bill would remove the requirement that the PUC wait until the next legislative session to receive that reimbursement.
HB 1007 passed the House Commerce and Energy Committee 10-3 on Jan. 24. It passed the House floor 58-10 on Jan. 27. It was heard in the Senate Commerce and Energy Committee on March 6 and was amended to state that the PUC gross receipts tax fund cannot be used to reimburse costs incurred by the PUC. It passed the committee 8-0 and was passed by consent on the Senate floor March 10. It now awaits the governor’s signature.
HB 1008 (brought at the request of the PUC) — Support: This bill would allow hybrid energy facilities to be regulated by the PUC. HB 1008 was heard and amended to clarify language. During testimony, PUC Commissioner Nelson noted that with advances in technology, new hybrid energy facilities (such as a combined wind and solar facility) are expected to be proposed. These types of facilities can be complementary as they produce energy at different times of day. The bill would give the PUC the ability to regulate these types of large energy facilities if they are more than 100 MW combined.
HB 1008 was unopposed in the House and Senate and awaits the governor's signature.
Carbon pipeline bills
The session has seen a number of bills introduced related to carbon pipelines. These include:
HB 1052 (Lems) — Monitor: Prohibit the exercise of eminent domain for a pipeline that carries carbon oxide.
Passed House State Affairs 10-3 and House floor 49-19. Passed Senate State Affairs 7-2 and Senate floor 23-12. Signed by the governor on March 6.
HB 1085 (Vasgaard) — Monitor: Establish a moratorium on the construction of carbon dioxide pipelines in this state and declare an emergency.
Amended and passed House Commerce and Energy 7-6. Amended and passed House floor 40-30. Sent to the 41st day (killed) in Senate State Affairs 5-4.
HB 1249 (Nolz) — Monitor: Protect landowners from the use of deception, fraud, harassment, intimidation, misrepresentation, or threat in acquiring easements for linear infrastructure.
Amended and passed in House Commerce and Energy 8-4. Passed House floor 36-34. Passed Senate State Affairs 5-4. Failed on the Senate floor 16-18.
Economic and community development
HB 1132 (Healy) — Support: This bill would create provisions for eligibility in the state’s child care assistance program for certain child care employees. Individuals working at least 20 hours a week for a day care center, family day care, or before or after school program would be able to exclude the income from these positions when determining eligibility for the child care assistance program, which is administered by the South Dakota Department of Social Services.
HB 1132 was heard in the House Health and Human Services Committee on Feb. 13 and amended to add a qualification that an applicant’s household income does not exceed 300% of federal poverty level. The amended bill passed 7-6. It was heard on the House floor on Feb. 19 and amended again to raise the hourly work requirement from 20 hours to 30 hours and passed the floor 39-31. On March 3 it was heard in the Senate Health and Human Services Committee and passed 5-2. On March 4 it passed the Senate floor 20-14. After clearing both chambers, the bill was sent to Gov. Rhoden, who unfortunately vetoed it on March 13. KELOLAND covered the response to the veto.
SB 95 (Davis) — Support: This bill makes an appropriation to the Department of Revenue for distribution of county rural access infrastructure funds. SB 95 appropriates $25 million from the general fund to distribute to counties for rural infrastructure improvements. This money would be paid in fiscal years 2026, 2027, and 2028. Counties are allowed to use money from the fund for the construction, rehabilitation, or replacement of small structures (bridges or culverts) on county secondary highways.
SB 95 was amended in the Senate Transportation Committee on Feb. 5 and referred to the Joint Committee on Appropriations, where it was heard on Feb. 27. The committee amended the bill to decrease the appropriation to $100 and passed 18-0. The amendment was brought to keep the bill alive but provide more flexibility while legislators continue to debate and decide on budgetary priorities.
On March 5 the bill went straight to the House floor, where it was amended to appropriate $5 million to distribute for fiscal year 2026. However, a Do Pass motion failed on a vote of 42-27.
HB 1041 (brought at the request of the Department of Education) — Oppose: This bill would revise and repeal provisions related to the function of the state library and its board. Former Gov. Noem’s 2025 budget proposed cutting the state library’s general budget by more than $1 million. This cut would eliminate 12.5 positions and reduce the library’s ability to receive more than a million dollars in federal funding. The state library serves as a vital resource for rural libraries across South Dakota, and the cuts in funding along with the provisions of this bill would eliminate most of the state library’s services and functions. The State Library Association has provided a fact sheet on the impact of this proposal.
On Feb. 5, HB 1041 was heard in the House Education Committee. The Department of Education was the only proponent. Numerous opponents spoke including staff from rural community libraries and schools as well as the South Dakota Municipal League. The committee voted 13-0 to refer HB 1041 to the Joint Committee on Appropriations with a Do Not Pass recommendation. On Feb. 27, the committee amended and passed the bill 16-2. The amended version will restore some of the functions of the state library and its ability to seek federal funding. The actual funding of the state library is embedded in the state’s budget appropriations bill.
On March 3, the bill was amended to remove appropriation language and passed the House floor 61-8. The bill passed the Senate 34-0 on March 4. It now awaits the governor’s signature. The House and Senate budget ended up cutting $825,000 in funds to the state library, but it will still be able to seek $1.4 million in federal funding. South Dakota Searchlight covered HB 1041 in depth here and the final budget here.
