This bill introduces new legal provisions regarding liability and damages related to wildfires caused by electric utilities in South Dakota. It defines key terms such as "electric utility" and "wildfire," establishing that an electric utility includes any entity that generates electricity at a utility scale or operates an electric transmission facility. The bill specifies that in civil actions alleging wildfire-related damages, strict liability cannot be applied to electric utilities, and plaintiffs are restricted in their ability to recover punitive damages unless malice or criminal intent is proven. Additionally, recovery for noneconomic losses is limited to cases involving death or bodily injury from burns.

Furthermore, the bill outlines the types of damages that can be recovered for economic losses and property damage, including the cost to restore property, the cost to replace lost use, or the difference in fair market value before and after the wildfire. It also establishes a three-year statute of limitations for bringing such actions and clarifies that the bill does not limit any defenses that electric utilities may raise in civil actions related to wildfire damages.