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 punitive damages can only be recovered if the utility acted with malice or criminal intent. Additionally, plaintiffs are limited in their ability to recover noneconomic losses unless they have suffered death or bodily injury from burns.

Furthermore, the bill outlines the types of damages that can be recovered, which include compensation for economic losses and damage to property, with specific criteria for calculating these damages. It sets a three-year statute of limitations for bringing actions related to wildfire damages and clarifies that the bill does not limit any defenses that electric utilities may raise in such civil actions. Overall, the legislation aims to provide a framework for addressing liability while protecting electric utilities from excessive claims related to wildfire incidents.