All Roll Calls
Yes: 122 • No: 2
South DakotaSB 167100th South Dakota Legislature (2025)Senate
revise certain provisions pertaining to municipal government.
Sponsored By: Reed, Tim S. (Republican)
Signed by Governor
Municipal Government
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 2 benefits, 1 costs, 12 mixed.
Commission cities assign department oversight duties
Five-member commissions can assign departments by a resolution approved by a majority of all commissioners. Assignments occur at the first meeting in the month following the election year; commissioners oversee their departments' staff and equipment. In three-member commissions, the mayor leads the municipality, supervises departments, and covers a commissioner's temporary absence or incapacity. The mayor issues licenses and permits unless an ordinance assigns that work elsewhere. Remaining duties are divided as equally as possible by majority resolution at the first meeting in the month after each annual election.
Municipalities can pay airlines for service
Municipalities can pay regularly scheduled commercial airlines to provide basic or improved air service. Payments are optional. The law sets no payment amount, funding source, or service duration.
Managers face penalties for election solicitation
City managers and officers or employees they appoint cannot ask people to support or oppose local alderman or commissioner candidates. The ban covers municipal elections in the municipality employing them. Violations are a Class 2 misdemeanor.
City managers get hiring and removal rules
City managers are chosen for executive and administrative skills, and the governing body can require residency. Elected governing-body members cannot become manager until one year after their elected term ends. Managers serve indefinite terms; suspension requires a resolution stating removal reasons, approved by a majority of all governing-body members. A manager has 15 days after receiving it to request a public hearing, which must occur within 15 days. Final removal must wait for a requested hearing, pay continues until removal takes effect, and the governing body's decision is final. During absence, disability, or suspension, a qualified municipal administrative officer can cover the manager's duties.
City managers oversee budgets and staffing
City managers enforce municipal rules, oversee administration, advise the governing body, and submit an annual budget on its schedule. They can discuss and introduce proposals but cannot vote or participate when their removal is considered. Managers sign payment warrants, generally after governing-body approval and with the finance officer's countersignature. The governing body appoints and can remove the finance officer, attorney, and library trustees; the finance officer appoints finance-office staff. Unless another law controls, managers appoint and can remove remaining officers, employees, and board members, and can delegate subordinate hiring to department heads. Managers and appointed officers must provide approved bonds unless blanket coverage applies; city-manager law controls over conflicting municipal statutes.
Local boards get defined election terms
Trustee boards have three or five members elected townwide for three-year terms, with first terms staggered at one, two, and three years. Mayor-and-council municipalities elect a townwide mayor and two aldermen per ward. Their terms are two years unless an ordinance sets three-, four-, or five-year terms; first alderman terms are staggered within wards. In the commission form, ordinances set staggered terms of two to five years, subject to first-election rules. Commission mayors and commissioners must be U.S. citizens, voters, and municipal residents.
Local officials face accountability and meeting rules
Mayors and aldermen must be U.S. citizens, voters, and municipal residents; ward aldermen must also live and vote in their ward. Moving outside the required area immediately vacates office, as does a court judgment convicting a mayor or alderman of bribery. Councils can set attendance rules by ordinance and expel members who violate them. City-manager governing bodies must meet publicly at least once each calendar month and keep minutes. Their quorum rule generally requires a majority of qualified members, with exceptions for listed vacancies; ordinances can set attendance penalties.
Mayors face different voting and veto limits
Under mayor-and-council rules, the mayor votes only to break ties, but cannot break ties on spending or funding measures. The mayor can veto ordinances and resolutions, including individual spending items. In municipalities employing a city manager, the mayor chairs meetings and serves as the official and ceremonial head. That mayor has no veto, but can command police and govern by proclamation during public danger or emergencies. Ordinances or resolutions can grant that mayor additional authority.
Municipal spending gets contract approval safeguards
Municipal contracts generally require approval at an official meeting, the mayor's signature, the finance officer's countersignature, and the municipal seal. Without these steps, contracts are invalid; an ordinance or resolution can delegate contract authority to a manager with limits. Municipalities can sue, contract, manage property and related rights, construct and operate public buildings, and insure public property. Supply contracts use the lowest responsible bidder unless another law provides otherwise, and municipal actions must serve legally authorized purposes. Governing bodies can fund necessary officer and employee expenses for municipal business or meetings inside or outside South Dakota. The law sets no required expense payment or amount.
Property owners can dissolve small towns
In towns with fewer than 250 residents, owners can petition a court for dissolution. They must own more than half the real property by both area and assessed value. A court-appointed referee checks these facts, and the court must find dissolution serves the town and property owners. Dissolution takes effect when the certified judgment is filed with the county register of deeds and Secretary of State. Officers can wind up affairs and levy and collect taxes for debts for six months after judgment, unless the court extends that period. The territory returns to the local jurisdiction that otherwise would have included it.
Small-town voters gain a dissolution process
In municipalities with fewer than 1,000 residents, signatures from 15% of registered voters trigger a dissolution election. The voter count comes from the last general election, and signatures older than six months are invalid. The election requires 50 days of published notice, except when the annual-election timing rule applies. Dissolution requires a majority vote and turnout of at least 40% of voters, using the last general election's registration count. The municipality ends six months later; debts are paid before remaining property goes equitably to the counties, and contract rights remain protected. A majority vote against dissolution blocks another dissolution election for five years.
Temporary mayors serve with limited powers
In mayor-and-council municipalities, a majority of all aldermen appoints a mayor until an election fills a vacancy. For temporary absences or incapacity, the council president serves, followed by the vice president if needed. This temporary mayor needs council approval for appointive staffing decisions and cannot cast a mayoral tie-breaking vote. In commission municipalities, the board names a commissioner as temporary mayor during absence or incapacity, or acting mayor until a vacancy election. Either commission appointee has only one commissioner vote. Vacancy elections fill the remaining term at the next annual election or a special election; commission mayors and commissioners immediately lose office after permanently moving outside the municipality.
Voters can change local government structure
First- and second-class municipalities use a mayor and council or commissioners; third-class municipalities use trustees. Each form can employ a city manager, and existing forms stay in place until legally changed. A petition signed by 15% of registered voters at the last general election requires an election on government form or the number of wards, commissioners, or trustees. Petitions expire six months after their stated circulation start; elections must occur within 50 days of filing. A timely petition filed on or after January 1 can use the annual election when election deadlines allow. Approved changes govern elections at the next annual municipal election or a special election called by the board.
Voters can require a city manager
A city-manager election requires signatures from 15% of registered voters, measured at the last general election. Petitions must be filed within six months of their stated circulation start, and elections must occur within 50 days. Timely petitions filed on or after January 1 can use the annual election when election deadlines allow. Majority approval requires the municipality to hire a manager and set the manager's pay; mayor-and-council election methods stay unchanged. Commission municipalities using a manager instead elect nine townwide commissioners within 60 days of approval. Commissioners serve staggered three-year terms, with three elected yearly after the first election, and choose a member as mayor.
Municipal property deals require public safeguards
Municipalities can lease their property on terms set by the governing body. Private leases longer than 120 days with annual value above $2,500 require a resolution of intent and public hearing. Notice must appear once in the official newspaper at least 10 days before the hearing. Afterward, the governing body can approve the lease and its terms. City property sales require two-thirds approval from aldermen; municipal real property sales through commissioners require two-thirds of that board.
Sponsors & Cosponsors
Sponsor
Reed, Tim S.
Republican • Senate
Cosponsors
Roby, Matt
Republican • House
Roll Call Votes
House vote • 2/26/2025
Do Pass Amended
Yes: 68 • No: 2
House vote • 2/25/2025
Do Pass
Yes: 12 • No: 0
Senate vote • 2/18/2025
Do Pass Amended
Yes: 35 • No: 0
Senate vote • 2/12/2025
Do Pass Amended
Yes: 7 • No: 0
Actions Timeline
Signed by the Governor
3/13/2025SenateDelivered to the Governor
3/5/2025SenateSigned by the Speaker
3/4/2025HouseSigned by the President
3/3/2025SenateHouse of Representatives Do Pass Amended, Passed, YEAS 68, NAYS 2
2/26/2025HouseHouse Local Government Do Pass, Passed, YEAS 12, NAYS 0
2/25/2025HouseScheduled for hearing
2/25/2025HouseFirst read in House and referred to House Local Government
2/19/2025HouseSenate Do Pass Amended, Passed, YEAS 35, NAYS 0
2/18/2025SenateCertified uncontested, placed on consent
2/12/2025SenateSenate Local Government Do Pass Amended, Passed, YEAS 7, NAYS 0
2/12/2025SenateSenate Local Government Motion to amend, Passed
2/12/2025SenateSenate Local Government Motion to amend, Passed
2/12/2025SenateScheduled for hearing
2/12/2025SenateReferred to Senate Local Government
2/3/2025SenateFirst Reading Senate
1/30/2025Senate
Bill Text
Introduced
1/30/2025
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