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South DakotaSB 165101st South Dakota Legislature (2026)Senate

revise certain provisions pertaining to municipal government.

Sponsored By: Reed, Tim S. (Republican), Roby, Matt (Republican)

Signed by Governor

Attorney's FeesCourt CostsMunicipal Government

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 3 benefits, 5 costs, 8 mixed.

Business managers face personal tax liability

Responsible corporate officers, company managers, and partners face personal liability when covered businesses fail to file returns or pay taxes. This covers taxes under South Dakota chapters 10-33A, 10-45, 10-46, 10-46A, and 10-46B. Closing the business does not erase liability for earlier failures. To avoid personal liability, the business must provide a surety bond or certificate of deposit equal to estimated annual gross receipts multiplied by the applicable sales, gross receipts, or excise tax rate. Elected or appointed municipal officials bonded under section 9-14-6 are exempt.

Municipal firefighters get work-hour protections

Full-time municipal fire department employees' hours follow municipal policy or contract. Hours cannot exceed 212 in a 28-day period or 204 in a 27-day period without extra pay or compensatory time off. The work period must be mutually agreed upon. The law does not set an extra-pay rate.

Municipalities can hire legal and engineering help

Municipalities can employ attorneys or contract for legal services. They can also employ or contract with licensed professional engineers. Engineers who lack a land-surveyor license must assign land-surveying duties to a licensed land surveyor.

Residents elect replacements after mayoral vacancies

A majority of all aldermen must support a vacancy appointment at a meeting held as soon as practicable. Voters fill the remaining mayoral term at the next regular municipal election or a special election. The council president serves as temporary mayor. The vice president serves when the president is absent, unable to serve, or the presidency is vacant, until that condition ends or the mayoral vacancy is filled. A mayor's resignation must be written and state its effective date; temporary absence or incapacity does not create a vacancy.

Departing municipal officers must return property

Departing municipal officers must deliver municipal books, property, and office materials to their successors within five days. Violators are personally liable for resulting damages, penalties set by local ordinance, and related reasonable attorney fees and costs. The municipality can also seek a court order requiring compliance.

Municipal officers must meet residency rules

People holding elective municipal office must be qualified voters of the municipality. They must have lived there, or in an area annexed to it, for at least three months before election or appointment. Moving outside the district, municipality, or ward they represent creates an immediate vacancy. This also applies to officers appointed to fill an elected-office vacancy.

Municipal appointees face bonds and removal

Except under chapter 9-10, municipalities can set appointed offices and duties by ordinance. Mayors appoint with majority approval from qualified council members; elsewhere, a majority of qualified governing-body members appoints. Appointment alone creates no protected job interest, though a written contract can provide one. Appointees must provide performance and money-handling bonds, with amounts set annually; municipal blanket coverage can satisfy this duty. Unless another rule applies, commissioner or trustee boards can remove appointees by a majority of all qualified members; mayors can remove their appointees in the municipality's interest and must report reasons at the next regular council meeting, including in private session.

Municipal job applicants face background checks

Municipalities can require job applicants to complete fingerprint-based state and federal criminal background checks. South Dakota's Division of Criminal Investigation and the FBI conduct the checks. Applicants who refuse or fail to cooperate can be denied employment. Municipalities are not required to impose these checks.

Local rule violations can bring penalties

Municipalities can adopt, change, or repeal ordinances and resolutions within their legal powers. They can seek court orders to enforce these rules and set penalties for violations. Penalties cannot exceed the limits in South Dakota subdivision 22-6-2(2).

Elected municipal officers can take extra roles

Elected municipal officers generally cannot hold another municipal position while in office. They can serve on boards, commissions, or committees whose founding ordinance or resolution specifically includes them. They can volunteer without salary or provide services paid up to $10,000 per calendar year. The pay cap does not apply to municipal ambulance service work in second- or third-class municipalities. Holding an alcohol license, or marrying a license holder, does not disqualify an officer; license holders can vote on other license issuances or transfers.

Municipal workers get more benefit options

Municipalities can offer group life, health, and accident insurance to employees, officers, and their immediate families, but coverage is optional. They can buy coverage or self-insure; accident coverage applies only when workers' compensation benefits do not apply. Municipalities can deduct each worker's or officer's share of insurance costs from pay and offer salary-saving or retirement annuity plans. An insurance contract requires consent from at least 60% of the covered employee group. Health plans can include flexible spending accounts with debit-card, direct-deposit, check, or combined payment methods.

Municipal workers get conditional dismissal protections

Municipalities can create civil service systems with suspension or removal for cause, board review, and court appeals. Union-represented workers can request board review only when their labor contract specifically allows it. Covered nonunion employees, police officers, and firefighters can be removed only through their civil service ordinance. That protection excludes city-manager appointees and does not limit the Governor's authority to remove local police officers. Repeal requires a voter-initiated ordinance, and changes affecting a worker's standing must follow the applicable labor negotiation process.

Local rules usually start after publication

Local ordinances and resolutions generally take effect 20 days after publication, unless a referendum suspends them. They can take effect immediately to preserve public peace, health, safety, or municipal government and its existing institutions. Rules exempt from referendum under section 9-20-19 can also start immediately. Immediate effect is also allowed for measures providing elections, hearings on improvements or assessments, or calls for bids.

Municipal ordinance books get access rules

Municipalities can compile unchanged ordinances into a book without the usual publication. Revised ordinance books need one adoption notice in the official newspaper, not publication of the full book. Revisions take effect 20 days after completed notice publication unless a referendum is invoked. Online ordinance books must be kept reasonably current, but the official book remains controlling. On request, the county circuit court clerk or law library must receive a free printed book, electronic link, or electronic copy.

Municipal police gain reach and fee duties

Police officers in municipalities spanning multiple counties can serve civil or criminal legal papers in any county containing that municipality. Officers receiving a municipal salary must account for all fees they receive from serving civil papers. They must give the finance officer an itemized account, receipts, and the fees by each month's last day.

Municipal building codes need shorter notices

Municipalities can adopt or amend qualifying national building, electrical, plumbing, safety, fire, or health codes without publishing the full ordinance. Codes must come from a recognized, established national organization. The finance officer must publish notice once a week for two successive weeks in the official newspaper. The ordinance takes effect 20 days after completed notice publication unless a referendum is invoked. This process applies whether or not the municipality changes the model code.

Sponsors & Cosponsors

Sponsors

  • Reed, Tim S.

    Republican • Senate

  • Roby, Matt

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 100 • No: 19

House vote • 2/20/2026

Do Pass

Yes: 50 • No: 17

House vote • 2/19/2026

Do Pass

Yes: 10 • No: 2

Senate vote • 2/12/2026

Do Pass

Yes: 33 • No: 0

Senate vote • 2/11/2026

Do Pass

Yes: 7 • No: 0

Actions Timeline

  1. Signed by the Governor

    3/4/2026Senate

  2. Delivered to the Governor

    2/25/2026Senate

  3. Signed by the Speaker

    2/24/2026House

  4. Signed by the President

    2/23/2026Senate

  5. Do Pass

    2/20/2026House

  6. Do Pass

    2/19/2026House

  7. Scheduled for hearing

    2/19/2026House

  8. First read in House and referred to

    2/17/2026House

  9. Do Pass

    2/12/2026Senate

  10. Certified uncontested, placed on consent

    2/11/2026Senate

  11. Do Pass

    2/11/2026Senate

  12. Scheduled for hearing

    2/11/2026Senate

  13. First read in Senate and referred to

    1/29/2026Senate

Bill Text

  • Introduced

    1/29/2026

    PDF

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