From Daily Enjoyment to Data Centers: SD’s New Laws Hit the Books July 1st- Stay Informed

Rapid City S.D. – July 1 brought a massive wave of new legislation from Pierre that directly impacts the daily lives, wallets, and constitutional rights of local residents.

Whether it’s navigating new municipal realities, understanding shifting infrastructure regulations, or avoiding unexpected criminal penalties, staying informed is the best defense against overreach.

Here is the ultimate practical guide to the new state laws you need to know.

Stay Out of Trouble – Vice,Tech and Contraband

The Cell- Cultured Meat Ban (Senate Bill 124). It is now a Class 2 misdemeanor to sell, manufacture, or distribute cell-cultured protein — often referred to as lab-grown meat — within South Dakota between July 1, 2026, and June 30, 2031. State inspectors have been granted the authority to inspect food service establishments and issue stop-sale orders if any violations are found.

New Age Restrictions on Hemp -Derived THC Products –(Senate Bill 45). State regulations regarding alternative THC products have tightened significantly. It is now a punishable offense for anyone under the age of 21 to possess or use Delta-8, THC-O acetate, and hexahydrocannabinol (HHC).

Strict New Nicotine Regulations (House Bill 1220 & Senate Bill 221). Two new layers of nicotine regulation take effect this session.

House Bill 1220 requires wholesalers and distributors of nicotine products — including vaping liquids and pouch products — to hold a state license.

Senate Bill 221 regulates the retail side: licensed retailers may only stock products from state-licensed distributors, and are barred from online, phone, or mail sales, free samples, and video-game-style packaging. Vending machines are restricted to licensed alcohol or gaming venues, with age-verification systems required. Violations carry escalating penalties, starting at a $500 fine for a first offense.

Criminalizing AI Deepfakes(Senate Bill 41). This highly critical law revises criminal invasion of privacy provisions to strictly prohibit the nonconsensual creation and distribution of digitally fabricated sexual material (AI deepfakes) of an identifiable individual.

Cryptocurrency Search & Seizure(Senate Bill 43). Law enforcement now possesses explicit authority to search and seize digital cryptocurrency accounts that are tied to criminal investigation

Enhanced Prison Contraband Penalties(Senate Bill 42). Penalties have been significantly enhanced for the ingestion, possession with intent to deliver, and delivery of a controlled substance within state correctional facilities.

The Roads and The Revenue – Taxes & Transportation

Commercial Driver Medical Cards(Senate Bill 10 & HB 1050). The state has officially adopted federal regulations requiring most CDL holders to maintain a valid medical card. Drivers who have a self-certified EA and a K restriction who fail to update their medical certification status before the July 1 deadline face an automatic CDL downgrade.

Additionally, civil penalties for commercial driver violations have been increased. For truckers, farmers, and ag haulers who’ve operated for years under the old K-restriction exemption without ever needing a DOT physical, this change is easy to miss until it’s too late — the downgrade to a standard license happens automatically, without a separate warning, and getting reinstated afterward means starting the certification process from scratch.

EV Registration Increase(House Bill 1227). South Dakota electric vehicle (EV) owners will see their annual license fee double, increasing from $50 to $100. This additional fee is imposed at registration time for noncommercial EVs powered solely by rechargeable batteries.

Local Sales Tax Rates Adjustment Municipalities are authorized to establish or adjust their local tax rates on January 1 or July 1. Business owners must stay vigilant to avoid tax remittance penalties, such as the town of South Shore, which just increased its general sales and use tax rate from 1 percent to 2 percent.

The Justice System – Probation, Parole & Rehabilitation

Expanded Driving Privileges for Restricted Drivers (House Bill 1013). The state expanded the list of approved, legal destinations for restricted drivers on probation. Offenders can now legally drive themselves directly to and from probation appointments, court appearances, 24/7 sobriety testing, treatment programs, childcare drop-offs/pick-ups, and health appointments.

Alternative Care as a Condition of Release (House Bill 1140). Judges are explicitly permitted to mandate treatment at a qualifying nonprofit entity as a formal condition of probation or parole. The nonprofit must be the recipient of a state-awarded alternative care program grant.

Repeal of Probation for Custody Contempt (House Bill 1012). This bill fully repeals provisions that previously allowed a judge to place an individual on supervised probation — which required home visits and check-ins — for being found in contempt of court regarding a child custody or visitation decree.

Transparency – Municipal and Legal Shifts

The anti SLAPP Statute (Senate Bill 137 / UPEPA). South Dakota implemented its first Uniform Public Expression Protection Act to combat strategic lawsuits meant to silence First Amendment activities.

Defendants can file a special motion for expedited relief within 60 days, which automatically stays all other proceedings like discovery. If the defendant wins the motion, the court must award them reasonable attorney fees and court costs.

For independent journalists, small publishers, and anyone who speaks publicly about local government or public figures, this is a meaningful shield: a lawsuit filed to bury someone in legal costs rather than win on the merits can now be knocked out early, with the person who filed it on the hook for the other side’s legal bills.

Closing Loopholes in Public Meetings(Senate Bills 46 & 47). SB 46 requires that a proposed agenda list every single item to be considered by a governing body in sufficient detail.

SB 47 mandates a roll call vote to enter an executive session if the decision isn’t unanimous, and reiterates that closed-door discussions must remain strictly limited to the stated purpose.

Genetic Bio Privacy (Senate Bill 49). This law imposes strict requirements on direct-to-consumer genetic testing companies, requiring express consent to collect data and granting residents the right to access or delete their genetic information.

If you’ve ever taken a 23andMe, AncestryDNA, or similar test — even years ago — you now have a legal right to go back to that company and demand they delete your data or biological sample, and they need your separate, explicit consent before using it for anything beyond what you originally signed up for.

Property and Infrastructure

The “Data Center Bill of Rights”(Senate Bill 135). Of the several data center bills debated in Pierre this session, SB 135 is the one that survived. It requires data centers with a peak electrical demand of 10 megawatts or greater to cover the cost of any increase in electricity rates they cause, rather than passing it on to other ratepayers. It also adds water-usage transparency requirements and explicitly bars the state from preempting county or city authority to regulate — or ban — data centers locally.

A separate proposal that would have imposed a one-mile residential setback and a 45-decibel noise cap on data centers failed in committee earlier in the session.

Homeowner exceptions for building permits (Senate Bill 3). Municipalities can no longer demand a building permit for the repair or substantially similar replacement of specific exterior parts of a detached single-family owner-occupied home.

This includes doors (if dimensions remain the same), downspouts, fascia, fencing panels or posts, and gutters.

In practice, this means homeowners doing routine exterior maintenance — replacing a storm-damaged fence panel, swapping out gutters, fixing a door — no longer need to go through the city or county permitting process first, as long as they’re not changing the footprint or dimensions of what’s there.

Agricultural Land Ownership (Senate Bill 40). This law tightens restrictions on foreign ownership of agricultural land by removing the inheritance exception to the 160-acre limit for non-prohibited entity foreign investors.

Sourcing & Primary Reference Material

Legislative Records: South Dakota Legislature (SD Codified Laws, 2026 Session Updates).

Official Broadcasts: South Dakota Attorney General’s Office Briefing — Ten laws introduced by AG Marty Jackley take effect July 1.