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require licensure for online pari-mutuel wagering pools for horse and dog races, and clarify the application of tax therefor.

This bill requires anyone operating online wagering pools for horse and dog races across multiple states to get a license from South Dakota as a "multi-jurisdictional totalizator hub." The bill also clarifies how much money the state and racing funds receive from these interstate betting operations, with lower tax rates for multi-state hubs compared to single-state operations.

restrict the use of artificial intelligence in therapy and psychotherapy services and to provide a penalty therefor.

This bill creates a new law prohibiting licensed therapists, psychologists, social workers, counselors, and similar mental health professionals from using artificial intelligence to conduct therapeutic communication with clients. The ban covers any AI-based system used to diagnose, treat, or address a client's mental, emotional, or behavioral health concerns, and violations would result in penalties.

establish requirements for the distribution and sale of vapor products, and to provide a penalty therefor.

This bill creates a new licensing system for selling vaping products in South Dakota, requiring both distributors and retailers to obtain licenses from the Department of Revenue before selling vapor products. The bill defines vapor products as nicotine devices that produce inhalable vapor (excluding FDA-approved cessation products) and sets out licensing requirements and fees. It repeals the old vapor product distribution rules and replaces them with this updated regulatory framework.

prohibit natural asset companies.

This bill creates a new state law prohibiting South Dakota from doing business with or investing money in "natural asset companies"—businesses that buy rights to manage natural resources like soil, water quality, and biodiversity for profit. The ban prevents these companies from gaining any interest in or control over public lands or state resources, and blocks the state from investing its money in such companies.

encouraging the Executive Board of the Legislative Research Council to form an interim Neurohealth Safety Committee to study and assess the regulatory framework under which vapor product retail establishments operate.

This resolution asks the Legislative Research Council to create a temporary committee to study how vapor product stores are currently regulated in South Dakota. The committee would examine unclear rules around fees, inspections, and compliance to determine whether the regulations need to be changed or clarified.

prevent virtual currency kiosk fraud.

This bill creates a new licensing and regulatory framework for virtual currency kiosks in South Dakota, requiring operators to be licensed and defining key terms like "virtual currency," "charges," and "kiosk" to establish clear rules for these services. The law aims to prevent fraud by setting standards for how virtual currency transactions through kiosks must be conducted and what fees can be charged to users.

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.

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.

regulate the use of chatbots by minors.

South Dakota would create new regulations requiring companies that operate chatbots and AI companions designed to seem human-like to verify users are at least 18 years old before allowing minors to access them. The law defines these regulated AI tools and establishes age verification requirements using government-issued photo identification with birth dates.

regulate the retail sale of nicotine products, and to provide a penalty therefor.

South Dakota is establishing new regulations for selling nicotine products—including tobacco, vaping products, and alternative nicotine items like pouches—by creating a licensing system through the Department of Revenue. The bill defines what counts as a nicotine product (including nicotine analogs designed to skirt existing rules) and sets penalties for violations, while keeping retailer license lists confidential except when needed for official duties. This creates a statewide framework to control how and where nicotine products can be sold to consumers.

impose a one-year moratorium on the construction or expansion of hyperscale data centers.

South Dakota would temporarily ban new hyperscale data centers (large facilities that use 50 megawatts or more of electricity) from being built or expanded in the state through June 30, 2027. The moratorium also applies to smaller data centers if their expansion would make them reach hyperscale size. This one-year pause gives the state time to study the impact of these energy-intensive facilities before allowing new construction or major expansions to proceed.

create a digital registry identification card for medical cannabis patients.

HB 1211 creates a digital registry identification card system for medical cannabis patients in South Dakota, allowing them to prove their legal eligibility to possess and use medical cannabis. The bill updates the state's medical cannabis law to clarify the types of cards available (including cards that permit home cultivation) and defines key terms like what counts as an "allowable amount" of cannabis for cardholders. This digital card system would make it easier for patients to demonstrate compliance with state law when purchasing or possessing medical cannabis.

limit costs and risks associated with electricity use by data centers and impose a moratorium.

This bill creates new rules requiring electric utilities to charge data centers the full cost of providing them electricity, including any infrastructure upgrades needed to serve them, rather than spreading those costs to other customers. The bill also prevents data centers from leaving other customers responsible for paying stranded costs if the data center shuts down early or for decommissioning expenses. These rules apply to all data centers, with special definitions for "large data centers" using 20 megawatts or more of electricity.

require that social media companies provide collected personal data of a user at the user's request and maintain transparent interoperability interfaces.

South Dakota social media companies must now give users copies of all personal data collected about them when requested, and must maintain transparent systems that allow users' data to move between platforms. The bill amends the state's existing electronic transactions law to add these new requirements for how social media platforms handle user information and data portability.

limit the potency of cannabis products sold at medical cannabis dispensaries.

South Dakota medical cannabis dispensaries would be prohibited from selling cannabis products that exceed specified potency limits: flower at 30% THC, liquid concentrates at 60% THC, edibles at 5mg THC per serving (100mg per container), and cannabis oil at 5% THC. This new rule caps the strength of medical cannabis products currently available to patients at state-licensed dispensaries.

prohibit weather and climate modification activities and provide a penalty therefor.

South Dakota would ban weather and climate modification activities—such as injecting chemicals into the atmosphere to change weather, sunlight, temperature, or climate—and impose penalties on violators. The bill creates a new fund financed by fines from violators, with the Department of Agriculture and Natural Resources using half the money to monitor and enforce the ban and the other half going to the Department of Transportation for related administrative costs.

create requirements for age verification and parental consent for application stores and to provide a penalty therefor.

HB 1275 requires app stores to verify users' ages and obtain parental consent before allowing minors to download applications, adding these requirements to South Dakota's existing consumer protection law. Businesses that fail to comply with these age verification and parental consent requirements would face penalties as deceptive business practices. The bill strengthens protections for minors by making it illegal for app store operators to knowingly distribute apps to children without proper age checks and parental approval.

allow the Public Utilities Commission to assess actual costs to data centers that are customers of public utilities.

The Public Utilities Commission can now charge large data centers (those using 10 megawatts or more of power) for the actual costs of reviewing their electricity service contracts with utilities. Any fees collected go into a state fund rather than reducing costs for other utility customers.

create a taskforce to study the impact of artificial intelligence systems on the state.

This bill creates a new taskforce to study how artificial intelligence systems affect South Dakota across various sectors. The taskforce will include 16 members representing industries like healthcare, banking, retail, and technology, plus educators, local officials, and state leaders appointed by the governor, state Supreme Court, and Board of Regents.

permit the state to invest in Bitcoin.

South Dakota currently limits state investments to traditional securities like government bonds, corporate bonds, and bank deposits—this bill adds Bitcoin to the list of allowable investments for state public funds. The change permits the state treasurer and other officials managing public money to invest a portion of state funds directly in cryptocurrency, making South Dakota one of the first states to officially authorize Bitcoin holdings for its treasury.

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.

require the inclusion of certain features within a manufacturer's application store or on a developer's application.

This bill creates new requirements for app stores and mobile applications to display pricing information to consumers. App store operators must list all purchasable goods and services available through each app along with their costs, while app developers must provide an easy-to-access feature showing what items can be bought in their app and how much they cost. These requirements apply only when commercially reasonable and technologically feasible to do so.

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.

revise and repeal provisions related to the athletic commission.

South Dakota is updating its athletic commission rules by repealing outdated sections and adding detailed definitions for boxing, kickboxing, mixed martial arts, and related roles like managers and matchmakers. The bill also significantly expands the commission's regulatory framework, particularly in section 42-12-10, to better govern these combat sports and the people involved in organizing and participating in them. These changes modernize how the state oversees professional fighting competitions and related activities.

require the provision of a notice to consumers, interacting with certain chatbots or other human-simulating computer technologies that could mislead or deceive the consumer.

South Dakota businesses must now clearly tell consumers upfront when they're interacting with a chatbot, AI agent, or other computer technology rather than a human—or they can't require that interaction as part of a commercial transaction. If a business violates this rule, consumers or the attorney general can sue for actual damages, $1,000 per violation, or up to $10 million in a class action, plus attorney's fees.

protect residents from increased utility costs and utility shortages caused by data centers, to clarify authority to regulate data centers, and to modify provisions pertaining to the purchasing of goods and services by a data center.

SB 235 exempts data centers from sales taxes on their purchases and requires data center operators to pay the full cost of their own electricity without shifting expenses to residential customers. The bill also prohibits electric utilities from raising rates or adding surcharges on residential customers to cover data center infrastructure or electricity costs. This protects South Dakota homeowners from subsidizing the utility expenses of large data center operations.

modify provisions relating to the reinvestment payment program, and relating to the purchasing of goods and services used by projects approved for the reinvestment payment program.

SB 239 modifies South Dakota's reinvestment payment program by updating key definitions used in the program, including adding a new definition for "cryptocurrency" and clarifying what counts as a "data center" for purposes of the program. The bill also adjusts how goods and services purchased for reinvestment-approved projects are treated under state law. These changes appear designed to modernize the reinvestment program to cover new types of businesses and clarify eligibility requirements.

restrict the processing of online personal data of individuals sixteen years of age or younger.

HB 1309 creates new state law to protect children 16 and younger by restricting how websites, apps, and online services can collect and use their personal information like names, addresses, email, phone numbers, and social security numbers. The law applies to companies that know a user is a minor or that target their services to minors, requiring them to limit how they process children's data online.

protect electric infrastructure in this state.

HB1049 prohibits foreign nationals from certain countries and foreign entities from owning, operating, or controlling electric power facilities in South Dakota, including power plants, transmission lines, and distribution equipment. Anyone who violates this ban must sell their interest within one year, and any contracts granting control to prohibited persons become unenforceable starting July 1, 2026. The bill treats violations as subject to forfeiture under South Dakota's asset forfeiture laws.

prohibit weather and climate modification activities and provide a penalty therefor.

This bill creates a new law prohibiting people from releasing chemicals or substances into the atmosphere with the intent to modify weather, climate, or sunlight intensity. Violators would face civil penalties, with the collected fines split between the Department of Agriculture and Natural Resources (for monitoring and enforcement) and the Department of Transportation (for related administrative costs). The bill establishes a special fund to pay for monitoring, investigating complaints, and ensuring compliance with the weather modification ban.

require an alternate approval process for an operation that extracts materials by the use of explosives.

This bill creates a new approval process for mining operations that use explosives to extract materials like sand, gravel, and rock in South Dakota. Currently, operators only need a standard mining license for extraction without explosives; this bill requires those using explosives to follow different rules and report their explosive use to the state within 90 days. The bill also clarifies that if a contractor or agent of the mining operator uses explosives, it counts as the operator using explosives for regulatory purposes.

revise provisions relating to industrial hemp.

South Dakota's industrial hemp law is being overhauled to streamline regulations and clarify definitions, including raising the allowed THC limit from 0.3% to 0.3% on a dry weight basis and explicitly prohibiting certain chemically-derived cannabinoids (like delta-8 THC, delta-10 THC, and HHC) from being sold as hemp products. The bill eliminates nearly all of the old hemp licensing and regulatory sections, replacing them with a simpler framework that aligns with federal USDA hemp regulations. This significantly reduces the state's direct oversight of hemp production and shifts compliance responsibility to federally-licensed growers.

establish a currency based on gold and silver.

South Dakota would establish a new gold and silver-based currency system where residents can open accounts holding physical gold or silver bullion stored in state-approved vaults and use an electronic payment platform to buy, sell, and spend that bullion as legal tender. The state treasurer would authorize and oversee private companies to operate these bullion depositories and electronic payment systems. This creates an alternative currency option alongside U.S. dollars for payments and debt obligations in South Dakota.

require certain applicants that seek a permit from the Public Utilities Commission of the State of South Dakota to prepare and pay for an environmental impact statement.

This bill requires companies applying for permits from South Dakota's Public Utilities Commission to prepare and pay for environmental impact statements as part of their application process. The change adds a new requirement for certain applicants to conduct and fund these environmental assessments before the commission can review their permit requests.

prohibit nondisclosure of certain agreements related to data centers.

State agencies and local governments in South Dakota are prohibited from signing confidentiality or nondisclosure agreements when they deal with private companies or individuals about building, developing, or locating data centers. Any data center agreements must be treated as public records that citizens can access. This ensures transparency in how public entities spend money and make decisions about major data infrastructure projects.

require the reporting of funding given by certain persons and governments to institutions under the control of the Board of Regents and the South Dakota Board of Technical Education.

This bill requires South Dakota's Board of Regents and Board of Technical Education to publicly report any funding they receive from foreign entities, governments, or individuals from six specific countries: China, Cuba, Iran, North Korea, Russia, and Venezuela. The reporting requirement applies to grants, donations, contracts, investments, and other forms of financial support, but excludes tuition payments from foreign students. This new transparency rule helps state officials and the public track foreign financial influence at public universities and technical schools in South Dakota.

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 a potential condemnor to examine real property absent the property owner's permission.

This bill clarifies how entities with the power of eminent domain can inspect private land when the owner refuses permission, but only for projects requiring a Public Utilities Commission siting permit. Before entering the property, they must give the owner 30 days' written notice describing what will be examined, when they'll enter, and how long they'll stay, and they must pay for any damage caused. Property owners can challenge the inspection in court within 30 days of receiving notice.

clarify the definition of backup electric generation.

This bill clarifies South Dakota's definition of "backup electric generation" by specifying that it means electricity generated off-grid on a temporary basis to replace the primary power source when it becomes unavailable. The change makes the definition more precise by explicitly stating that backup generation must not be connected to the electrical grid and must be used only as a temporary replacement.