The Chamber Advocate

2026 South Dakota Legislative Session – Week Five

Week 5 saw a significant uptick in bills being heard in committees, as the Legislature has already begun holding late afternoon and evening committee hearings to address the significant number of bills that have not yet had their first hearing. This is a trend we anticipate continuing into Week 6 ahead of Crossover Day on Feb. 24, when all bills must move out of their chamber of origin or be deemed lost if they are not heard on the floor of their originating chamber by that date.

SB 79, a bill that would appropriate $6 million from the state to assist in the construction of a new advanced manufacturing laboratory space and classrooms at Southeast Technical College, had its committee hearing Wednesday in Joint Appropriations. Proponents of the bill — including leadership from Southeast Tech, the Greater Sioux Falls Chamber of Commerce team and others — provided testimony on the importance of creating additional space and opportunities for students to pursue careers in advanced manufacturing, welding and related fields to support continued workforce needs across the region. The bill did not receive final action from the committee, as the Legislature continues to finalize its one-time spending priorities.

HB 1245, a bill that would allow municipalities to propose a temporary sales tax increase of up to 1% to voters to fund a specified list of capital projects in their community, passed the House floor this week. The proposal would help communities create revenue to support projects such as parks, bridges, water and sewer infrastructure or other capital expenditures. The bill specifies that voters must approve the tax increase with 60% approval within the municipality and that the increased tax would sunset once funding needs are met or after five years. If passed, this enabling legislation would benefit communities across the state by allowing them to raise funds for projects instead of relying on loans or bonding, potentially saving municipalities significant long-term costs.

Looking Ahead

SB 76, legislation that would allow a transfer of funds from the Housing Infrastructure Fund to go toward loans for both the Sioux Falls and Rapid City airports for terminal expansion, is scheduled to be heard Tuesday, Feb. 17. These funds would come at a critical time for the Sioux Falls airport, as expansion is currently underway, and would provide additional support for the project and potentially expanded amenities for a growing number of travelers.

There are still a number of bills related to extremely restricting, or outright banning, large-scale data centers from operating in South Dakota. The Greater Sioux Falls Chamber of Commerce actively supports industrial innovation, low regulation and ensuring that South Dakota remains open to business opportunities that are the right fit for our communities. We continue to believe that a statewide approach to restricting certain industries is not a policy stance that supports South Dakota continuing to be the best place to live, work and do business.

As was highlighted before, more bills have been introduced in 2026 than in any session in the past 25 years. We anticipate that there will continue to be morning and evening committee meetings heading into next week, as the Legislature is required by the state constitution to give every bill at least one public hearing.

Stay Informed

As the South Dakota legislative session continues, please continue to read Chamber Advocate and check the Bill Tracker to stay up to date on the legislation your Greater Sioux Falls Chamber of Commerce advocacy team is monitoring and advocating on.