The bill aims to enhance legislative oversight of rulemaking in South Dakota by introducing new requirements for agencies and amending existing statutes. It defines a "major rule" as any rule likely to incur over $1,000,000 in implementation and compliance costs within five years. Agencies are mandated to prepare a regulatory impact analysis for proposed permanent rules, which must detail the need for the rule, its legal basis, alternative options, and a cost-benefit evaluation. The Interim Rules Review Committee is tasked with reviewing these proposed rules and their analyses, providing recommendations to both the agencies and the Legislature. The bill also specifies procedures for adopting, amending, or repealing rules, including stricter guidelines for emergency rule adoption to prevent misuse.

Additionally, the bill clarifies the agency's role in legal actions regarding rule validity by changing the language from "shall" to "must," ensuring mandatory agency involvement. It allows for declaratory judgments regardless of prior requests for rule assessment and introduces a de novo review by the court to determine if a rule qualifies as a major rule. The bill also establishes limitations on legislation directing the promulgation of major rules, ensuring that such legislation does not alter statutory authority for rulemaking or affect claims regarding rule defects. This legislation cannot be included in court records during judicial proceedings concerning a rule, except for determining the rule's current status.

Statutes affected:
Introduced, 01/26/2026: 1-26-1, 1-26-1.2, 1-26-4, 1-26-5, 1-26-6, 1-26-14