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require that certain facilities obtain conditional use permits from adjacent political subdivisions.

Large electrical power facilities (those using or generating 20 megawatts or more of power) located within one mile of a county or city border must now obtain conditional use permits from the adjacent county or city if that jurisdiction has zoning rules in place. This requirement gives neighboring counties and municipalities a formal say in whether major energy projects are approved near their boundaries, even if the facility is technically located in a different jurisdiction.

modify the authority of a political subdivision to adopt mining ordinances.

Counties and cities (that are first or second class and have a comprehensive plan) can now adopt their own rules for sand, gravel, and aggregate mining operations, as long as those rules don't conflict with state law. However, local governments cannot require miners to post additional bonds beyond what state law already requires, and the state must verify that miners have complied with local rules before issuing state permits.

allow subdivisions to limit the operation of drones at open-air events.

South Dakota cities and counties can now create local rules limiting drone operations at large public gatherings like parades, fairs, festivals, sporting events, and air shows to protect people's privacy and prevent trespassing. This gives local governments new authority to restrict where drones can fly during these crowded events, though the restrictions must be reasonable and necessary.

revise the limitations on a municipality's power to take actions for the promotion of health or the suppression of disease.

This bill limits the power of South Dakota cities and towns to take health or disease-prevention measures by adding restrictions that prohibit such measures from interfering with religious exercise, free speech, assembly rights, activities in private homes or businesses, or gun rights. The change narrows what municipalities can do during public health emergencies by explicitly protecting these constitutional freedoms, meaning cities cannot use health ordinances to restrict these activities even to fight disease outbreaks.

authorize the creation of land banks.

South Dakota will allow local governments—counties, cities, school districts, and other tax-levying entities—to create nonprofit organizations called land banks to buy, manage, and rehabilitate abandoned, blighted, vacant, or tax-delinquent properties in their areas. Each land bank will be governed by a board of 5-11 members appointed through a process set by the local government that creates it. This is a new tool to help communities revitalize neglected properties and return them to productive use.

require that counties provide written notice to township supervisors of conditional use applications and appeals.

Counties must now send written notice to township supervisors at least ten days before holding a public hearing on any conditional use application or appeal for property in that township. This gives township supervisors advance notice so they can participate in or prepare comments on land-use decisions affecting their areas.

modify the distributions of revenues collected from severance taxation on new permits.

This bill changes how South Dakota distributes tax revenue from new precious metals mining permits. For companies that get permits on or after July 1, 2026, the state removes the $1 million cap that previously stopped counties from receiving their 20% revenue share once they hit that threshold—meaning counties will now continue receiving their share indefinitely from these newer operations. The bill also clarifies that when mining companies merge or consolidate, counties keep their rights to revenue from the original permit holder.

require the approval of the county for the creation of a tax increment financing district by a municipality.

Municipalities must now get approval from their county's board of commissioners before creating a tax increment financing district. This new requirement applies whether the district is entirely within the county or only partially located there. The change gives counties a say in local development projects that were previously decided by cities alone.

update provisions related to the permit application process for proposed energy and transmission facilities.

SB 25 updates the rules for companies applying to build energy facilities and transmission lines in South Dakota by requiring them to notify nearby property owners earlier in the process and to post public notices within 30 days of filing their applications. The bill also clarifies that when the Public Utilities Commission reviews these applications, it must establish a local review committee that includes tribal council chairs, school board presidents, county commissioners, mayors, and a utility representative to give communities a voice in the permitting process.

authorize municipalities to establish a local funding mechanism for capital improvement projects.

South Dakota cities can now create a local funding mechanism for capital improvement projects by imposing a gross receipts tax of up to one percent on businesses within their borders. To implement this tax, a city must establish a five-member capital improvement board (made up of one city council member and four residents) that reviews and approves any ordinance establishing the tax, which must specify its purpose and minimum revenue target. This gives municipalities a new revenue option to fund infrastructure and other capital projects without needing state approval.

eliminate a limit on the accumulation of the unused index factor for property taxation.

South Dakota counties and cities can currently carry forward unused property tax growth allowance (the "index factor") from up to three prior years, but only up to 10 percent of their revenue. This bill removes that three-year limit and the 10 percent cap, allowing counties and cities to accumulate and use unused growth allowance from all prior years going back to 2024. This gives local governments more flexibility to increase property tax revenue in future years by drawing on growth they didn't use in the past.

require that the Department of Education provide for the compensation of a teacher employed by a school district.

This bill shifts teacher pay from individual school districts to the state Department of Education, which will now use state general appropriation money to pay teachers' salaries and benefits based on a standardized schedule set by the Board of Education Standards. School districts can no longer set teacher compensation independently but are limited to hiring only a certain number of teachers based on a state-established target ratio. The bill repeals several existing provisions related to local teacher compensation decisions and replaces them with a statewide salary system that accounts for teacher certification demand, education level, and experience.

modify the requirements to refer an ordinance or resolution to the voters of a political subdivision.

HB1323 changes when local government ordinances and resolutions must be put to a public vote by modifying the referendum requirements across multiple types of political subdivisions in South Dakota. The bill reorganizes and expands the rules governing which ordinances trigger mandatory voter referrals, clarifying the process and timeline for when these measures take effect. These changes apply to counties, cities, towns, and various other local government entities throughout the state.

limit the types of residential improvements for which counties, municipalities, and townships may require a permit.

Counties, cities, and townships can no longer require homeowners to get building permits before repairing or replacing certain exterior parts of single-family homes, including doors, windows, siding, gutters, fencing, and similar items—as long as replacements keep the same dimensions and aren't structural changes. Historical properties are exempted from this rule and can still require permits for these same repairs. Homeowners still need to follow all other applicable building codes and rules.

authorize the assumption of certain responsibilities and the waiver of sovereign immunity in connection with certain actions under federal environmental law.

South Dakota's Department of Transportation may now take over certain federal environmental review responsibilities for highway projects from the federal government under federal law. By doing so, the state waives its legal immunity from being sued in federal court over how it handles these environmental duties. The state also agrees to pay any damages, attorney fees, and court costs if it loses a lawsuit related to these environmental responsibilities, using money from the state highway fund.

clarify the rights to appeal and refer certain decisions of boards of county commissioners.

This bill clarifies the process county commissioners must follow when deciding whether to approve or reject proposed changes to zoning and land use rules. The bill specifies that if commissioners adopt a change, they must publish a notice of adoption in the county newspaper and the change takes effect 20 days later, while rejections are handled under a separate appeals process outlined in state law.

protect residents from increased utility costs and utility shortages caused by data centers and clarify authority to regulate data centers.

SB 135 creates new regulations for large data centers (those using 10 megawatts or more of power) to ensure they pay the full costs of electricity and water service they consume, including costs to maintain infrastructure if they shut down or reduce operations. The bill also allows counties and municipalities to adopt their own rules limiting or prohibiting data centers in their areas, and requires data center operators to notify local water providers about their water usage plans before opening. These changes aim to prevent data centers from shifting their infrastructure costs onto other residents or causing utility shortages.

amend provisions pertaining to the administration of an academic achievement assessment to students in grade eleven.

South Dakota school districts will no longer be required to administer a single standardized academic assessment to all students in grades three through eight and grade eleven; instead, they'll have flexibility in how they assess student progress while still being required to test writing skills at two grade levels determined by the Department of Education. The bill removes the previous requirement that every public school district use the same state-provided test across all these grade levels, giving districts more autonomy in choosing their assessment methods.

remove the requirement that counties remit to municipalities an amount equal to the road levy for calendar years 1984, 1985, and 1986.

This bill removes an old requirement that counties must pay municipalities an amount equal to the road taxes collected in 1984, 1985, and 1986. The change eliminates a decades-old obligation that is no longer practical or necessary for modern county-municipal financial relationships.

provide for indigent legal services by the Commission on Indigent Legal Services, and to provide an appropriation therefor.

This bill shifts responsibility for providing and paying for legal representation of poor people from individual counties and cities to a new state-level Commission on Indigent Legal Services. Instead of each county deciding how to handle indigent defense, the commission will now establish the system for providing lawyers to people who can't afford them and will pay the costs directly rather than leaving it to county budgets.

authorize the imposition of a county option gross receipts tax to reduce owner-occupied property taxes.

Counties can now choose to impose a new tax on gross receipts (money businesses take in) to help reduce property taxes on homes that owners live in. The bill requires property tax bills to separately show homeowners how much of their property tax reduction comes from this new county gross receipts tax, starting in 2028. This gives counties a new tool to shift some tax burden from homeowners to businesses.

modify the distribution of gaming revenues.

This bill modifies how South Dakota divides gaming tax revenues by specifying that 40% goes to tourism promotion and 10% goes to Lawrence County, while requiring $100,000 annually to fund historical preservation grants and loans. The remaining funds after these allocations and administrative expenses are distributed to municipalities on a quarterly basis. This change clarifies and potentially redirects gaming revenue away from other uses toward tourism, Lawrence County, and historical preservation.

authorize the recall of county commissioners.

This bill creates a new process allowing voters to recall county commissioners from office before their terms end. A recall petition would need signatures from either 15% of registered voters in a commissioner's district (or 5% county-wide for at-large commissioners), and must allege grounds such as corruption, crimes in office, incompetency, misconduct, or theft.

authorize counties and municipalities to issue a license for a cigar bar.

Counties and municipalities can now issue licenses for cigar bars, which are enclosed establishments that sell cigars and must also hold a license for on-sale alcohol, food service, or similar businesses. A cigar bar must have proper ventilation to keep smoke out of non-smoking areas, maintain a humidor, and generate at least 10 percent of its income from cigar sales. County commissioners and city officials will review applications through a public hearing process similar to the one used for regular liquor licenses.

authorize boards of county commissioners to adopt policies for investigating allegations of misconduct of county departments, employees, and officers.

County commissioners can now adopt written policies for investigating misconduct by county employees and officials, including abuse of authority, conflicts of interest, and neglect of duties. Any investigation policy must include an investigator from outside the department being investigated, establish confidentiality and fairness rules, and follow the state's removal procedures for county officers.

authorize the establishment of municipal property tax rebate programs.

South Dakota cities can now create property tax rebate programs that give homeowners money back on their municipal property taxes if they meet criteria set by the city. Cities that establish such a program must give rebates to anyone who qualifies under the rules the city creates. This is a new option for municipalities—they're not required to offer rebates, but they now have the legal authority to do so.

revise a provision related to service of process for boards of county commissioners.

# HB 1320 Summary This bill updates how people can legally notify county commissioners when appealing their decisions by allowing notices to be served on a county auditor, any county commissioner, the state's attorney, or a person the board designates to receive notices. The change clarifies and expands the options for delivering these required legal notices, making the appeals process more flexible.

amend the type of entities eligible to participate in the cybersecurity services initiative.

South Dakota's existing $7 million cybersecurity services initiative now includes nonprofit organizations that provide drinking water and sanitary sewer utilities, in addition to the previously eligible counties, municipalities, and utilities run by government bodies. This expansion allows more types of water and sewer service providers to access state funding to strengthen their protection against cyber attacks.

clarify the procedure for petitioning a board of county commissioners for a change to the comprehensive plan or zoning ordinances.

This bill clarifies the process for submitting petitions to county commissioners requesting changes to comprehensive plans or zoning ordinances. It establishes that petitions must be filed with the county auditor, who then forwards them to a planning commission for a recommendation within 45 days (including a public hearing), after which the county board holds its own public hearing and makes a final decision. The bill essentially codifies the step-by-step procedure that petitioners and county officials must follow when requesting zoning or comprehensive plan changes.

revise certain provisions pertaining to municipal government.

SB165 makes extensive revisions to South Dakota's municipal government laws, affecting how cities handle mayor vacancies, council procedures, and various administrative processes. The bill clarifies succession rules when a mayor is temporarily absent or incapacitated (distinguishing this from a vacancy that requires appointment), streamlines procedures for filling vacant offices, and repeals outdated provisions while updating numerous other municipal governance sections. These changes modernize how South Dakota cities operate their day-to-day government functions.

require a vote to approve the creation of certain tax increment financing districts.

SB207 requires cities, towns, and counties to hold a special election before creating a tax increment financing district if the project costs exceed $15 million. Currently, local governments can establish these districts through a governing body resolution alone, but this bill adds a voter approval requirement for larger projects. The bill also makes minor technical changes to how districts are formally created and named.

provide that a portion of revenues from wind farms remain with school districts.

Wind farm revenues will now be shared with local school districts instead of going entirely to the state, ensuring that communities hosting wind energy projects benefit directly from that economic activity. The bill modifies how the state distributes wind farm tax revenue by allowing school districts to retain a portion for their own use.

authorize the issuance of no-trespass orders by private security officers, require the establishment of buffer zones per written no-trespass orders, and afford municipalities greater authority to regulate trespass.

HB1025 allows private security officers to issue written no-trespass orders and requires that anyone receiving such an order stay at least 50 feet away from the property. The bill also upgrades the penalty for ignoring a no-trespass order from a Class 2 misdemeanor to a Class 1 misdemeanor, and gives municipalities more power to regulate trespassing within their areas.

require that corrected information be posted at least twenty-four hours prior to a meeting of a political subdivision.

When a political subdivision discovers a mistake in a posted meeting agenda or financial report, it must now post the corrected version at least 24 hours before the meeting at both its office and website. This new requirement ensures the public has accurate information well in advance of the meeting, rather than potentially seeing errors up until meeting time.

revise a provision related to the venue of adoption proceedings.

HB1197 expands where adoption cases can be filed in South Dakota by allowing petitions to be filed in the county where the child was born or currently resides, in addition to the county where the adopting parent lives or where the child-placing agency is located. This gives families more flexibility in choosing a convenient courthouse for adoption proceedings.

make an appropriation for grants to support the purchase of personal protective equipment by volunteer fire departments and to declare an emergency.

South Dakota will provide $5 million in grants to volunteer fire departments (those with at least 70% volunteer firefighters) to help them buy protective equipment like gear and clothing for their firefighters. The Department of Public Safety will review applications in the order they're received and prioritize funding to departments with the greatest safety needs, with any unspent money reverting to the state by June 30, 2030.

require boards of county commissioners and county planning and zoning commissions to hold meetings after certain times or provide recordings of meetings to the public for later viewing.

This bill requires county commissioners and county planning and zoning commissions to either hold their weekday meetings at 6 p.m. or later, or provide free public recordings of the meetings online within 24 hours. The change makes it easier for working citizens to attend these meetings in person or watch them later, rather than being limited to daytime-only sessions.

prohibit the use of property and personnel in the enforcement of certain federal laws pertaining to firearms.

Starting July 1, 2026, South Dakota prohibits state and local government property and employees from being used to enforce certain new federal gun laws that are stricter than South Dakota's laws—specifically those creating gun registries, requiring gun owner licenses, mandating background checks for private sales, or confiscating firearms from law-abiding citizens. State and local law enforcement cannot collect or share information to help federal authorities enforce these specific federal gun measures. This creates a new state law that blocks cooperation between South Dakota officials and federal gun enforcement efforts in these defined areas.

amend provisions pertaining to the timing of municipal and school district elections.

This bill changes when South Dakota cities and school districts can hold elections by moving municipal elections to a single statewide date and adjusting the timing rules for special elections and ballot measures. Specifically, it modifies deadlines for petitions and consolidates various election scheduling requirements into updated procedures tied to regular municipal and school district election dates. The bill repeals several outdated election timing provisions and creates new rules for when election notices must be published and how far in advance elections must be announced.

abolish the State Board of Elections.

This bill eliminates the State Board of Elections and transfers its election administration duties to the Secretary of State's office. The changes affect dozens of election-related laws covering voter registration, ballot procedures, campaign finance, and other electoral processes, all of which are being reorganized under the Secretary of State's direct control rather than an independent board.

limit nuisances caused by data centers.

This bill creates new rules to limit noise and location problems from data centers in South Dakota. Starting July 1, 2026, data centers cannot be built within one mile of residential areas (though local governments can set stricter rules), and data centers must keep noise levels at or below 45 decibels when measured at the nearest home or residential property line. If a data center violates these rules, it's considered a nuisance that the state's attorney or affected residents can sue to stop.

create the county and township infrastructure fund for the accounting, safekeeping, and allocation of unobligated rural access infrastructure fund moneys.

This bill creates a new state fund to collect unused rural infrastructure money from counties every three years and redistribute it back to counties that need it. Currently, counties can only use rural access infrastructure funds for specific road and bridge projects, and this bill requires them to send any unspent money to the state instead of keeping it. The Department of Revenue will manage this statewide fund and distribute the collected money to counties based on a formula in existing law.

modify the administration of the South Dakota-Ireland trade fund.

SB197 restructures the South Dakota-Ireland Trade Commission by changing how its members are appointed—adding a representative from a private international trade association and redistributing industry representative positions between the Senate president pro tempore and House speaker. The bill also clarifies that the Executive Board of the Legislative Research Council will handle both administrative services and management of the trade fund that pays for the commission's work.