provide additional legislative oversight of rulemaking.

South Dakota agencies face stricter rulemaking

Before starting permanent rulemaking, South Dakota agencies must prepare an impact analysis signed by the agency’s chief officer. It must explain the rule’s need, legal basis, alternatives, sources, uncertainty, benefits, and direct and indirect costs, including lost opportunities. It must also assess effects on small businesses—nongovernmental groups with 25 or fewer full-time employees. A rule is “major” if expected implementation and compliance costs exceed $3 million during the two years after adoption. That includes costs paid by or passed along to businesses, people, other nongovernmental groups, or local governments. A permanent major rule cannot finish adoption unless the Interim Rules Review Committee finds sufficient legal authority or a statute specifically directs its adoption, amendment, or repeal. The committee can instead recommend that lawmakers address the rule’s substance through legislation.