Today is Day 31 of South Dakota’s 38-day legislative session. Legislators must now sprint to hear all remaining viable bills. March 10 is the last day for a bill or joint resolution to pass both houses. Legislative session will adjourn on March 13, with March 31 designated for gubernatorial vetoes.
The bill to revise and repeal the functions of the state library passed through the Joint Committee on Appropriations but was amended to restore some of the functions of the state library and its ability to seek federal funding. However, the state library’s funding is still undecided, as it is embedded in the state’s budgetary appropriations bill.
A bill that would have allowed food grown and raised in the state to be excluded from state sales tax was tabled at the request of the prime sponsor, who asked for more time. An appropriation to the rural access infrastructure fund, which pays for road and bridge improvements, remains uncertain.
See below for more information on the bills we are following and to read our full update.
We welcome your input. Feel free to be in touch about these or any other bills you feel are important to rural communities. I can be reached at [email protected] or 605.240.0039.
Let your voice be known.
It is critical that legislators hear from the people they represent. We encourage you to get involved in the legislative process by communicating with elected officials about the issues you care about. If you don’t know who your legislators are, you can find them at this link.
Most testifying is done in person. Currently, it is up to each committee to decide whether or not to allow remote testimony. To make a request to testify remotely, contact the committee that has been assigned to the bill. Email addresses can be found here by clicking on the specific committee. Committees ask that remote testimony requests, written comments, or digital handouts are submitted 24 hours in advance of the committee hearing.
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 that reimbursement.
HB 1007 was heard on Jan. 24 in the House Commerce and Energy committee and passed 10-3. It was heard on the House floor on Jan. 27 and passed 58-10. It is scheduled for a hearing in the Senate Commerce and Energy committee on March. 6.
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 complimentary 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 heard in the House Commerce and Energy committee on Jan. 24 and passed 13-0. It was heard on the House floor on Jan. 28 unopposed. It is scheduled for a hearing in the Senate Commerce and Energy committee on March 4.
Senate Bill (SB) 211 (Hohn) — Monitor: This bill would revise and clarify notice and hearing procedures by the PUC for energy conversion and transmission facilities permits. The bill makes several changes to the process, including shortening the time period for notification of nearby landowners of a proposed site, allowing any party to request a prehearing conference and request deadline extension for commission action, and extending the timeline for contested cases.
SB 211 was heard in the Senate Commerce and Energy committee on Feb. 18. A Do Pass motion failed on a vote of 4-5 and was sent to the 41st day (killed) on a vote of 5-4.
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 House floor 49-19. Scheduled for a Senate State Affairs hearing March 3.
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. Scheduled for a Senate State Affairs hearing March 4.
SB 49 (Carley) — Monitor: Prohibit the exercise of the right of eminent domain for the construction of certain facilities.
Sent to the 41st day (killed) in Senate State Affairs 7-1.
HB 1228 (Hughes) — Monitor: Require an environmental impact statement from applicants seeking a carbon dioxide transmission facility permit from the PUC of the State of South Dakota.
Passed House Commerce and Energy 9-4. Do Pass motion failed House floor 37-32.
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. Scheduled for a Senate State Affairs hearing March 4.
HB 1251 (Randolph) — Monitor: Establish the minimum compensation for an easement obtained through the exercise of eminent domain for a project affecting multiple landowners.
Tabled in House Commerce and Energy 13-0.
SB 212 (Hohn) — Monitor: Require that pipeline applicants acquire county permits prior to submission of a permit application to the PUC.
Tabled in Senate Commerce and Energy 7-0.
Economic and community development
SB 86 (Davis) — Support: This bill would expand eligibility for the rural recruitment assistance program to include chiropractors and optometrists. The rural health care recruitment assistance program, operated by the Department of Health, offers financial incentives to medical providers such as physicians, dentists, nurse practitioners, physician assistants, and certified nurse midwives who agree to practice in communities with a population of less than 10,000.
SB 86 was heard in the Senate Committee on Appropriations on Feb. 18. The South Dakota Department of Health testified in opposition, stating that the rural recruitment program is geared toward filling primary care positions, which does not include optometrists and chiropractors. It was estimated the cost for state implementation would be $770,000. Despite testimony that economic development professionals have identified these providers as needs in their communities, the committee voted 8-1 to table the bill, citing concerns over the state budget.
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. It is scheduled for a hearing in the Senate Health and Human Services committee on March 3.
SB 126 (Reed) — Support: This bill establishes the manner of determining payments for the child care assistance program, including requiring the Department of Social Services to increase payments from the 75th percentile of market rate for the area to the 90th percentile.
SB 126 was heard in the Senate Committee on Appropriations on Feb. 20. The South Dakota Department of Social Services opposed the bill on the basis of funding concerns. Ultimately, it was sent to the 41st day (killed) on a 5-3 vote.
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.
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. South Dakota Searchlight covered the hearing in depth here.
HB 1111 (Garcia) — Support: This would appropriate $1 million from the general fund for grants to support the purchase of telehealth kiosks. These kiosks would be placed in publicly accessible locations and allow individuals to access remote health care services without an in-office visit. The grants would be awarded with a requirement that the kiosk operate in a county with a population of 15,000 or less and an average life expectancy below the median life expectancy of the state, or a community with limited access to primary health care professionals.
HB 1111 was heard in the Joint Committee on Appropriation on Feb. 21. Proponents argued the benefits of increased telehealth access, particularly in Tribal communities. Opponents argued against the budgetary implications. It was tabled on a vote of 15-1.
SB 213 (Foster) — Support: This bill would exempt any food grown, raised, or otherwise produced in this state from state sales tax. South Dakota is one of the only states that taxes groceries at the full sales tax rate. Decreasing any type of tax on food has the potential to raise economic security, especially for those with low incomes.
SB 213 was heard by the Senate Taxation committee on Feb. 19. An amendment was passed stating that the bill would only apply to foods sold at farmers markets; however, the prime sponsor requested the bill be tabled so the bill could be worked on and brought again next session. It was tabled on a vote of 7-0.
HB 1089 (Wittman) — Support: This bill would establish parameters to ensure school districts providing free or reduced-price meals to students are reimbursed by the state.
HB 1089 was heard in the House Education committee on Feb. 3. The committee voted 13-2 to refer to the House Committee on Appropriations with Do Not Pass recommendation. On Feb. 24, the committee sent the bill to the 41st day (killed) on a 5-4 vote.
Upcoming legislative forums
Rapid City Area Cracker Barrels, March 8, hosted by Elevate Rapid City
