The bill aims to enhance legislative oversight of rulemaking processes in South Dakota by amending existing statutes and introducing new requirements for agencies. Key amendments include the definition of "major rule," which is now defined as any proposed rule likely to incur over $3,000,000 in implementation costs. Agencies are required to prepare a regulatory impact analysis for all proposed permanent rules, detailing the need for the rule, its legal basis, alternative options, and a cost-benefit evaluation. Additionally, the Interim Rules Review Committee is granted the authority to revert major rules to earlier steps in the adoption process or recommend that they be brought as future legislation.

The bill also establishes new procedural requirements for agencies when adopting, amending, or repealing rules. Agencies must serve various documents, including a regulatory impact analysis and fiscal notes, to relevant officials and publish notices of hearings. The bill emphasizes public participation by ensuring that all meetings of the Interim Rules Review Committee are open to the public and that interested persons can present evidence. Furthermore, it clarifies that legislation directing the promulgation of a major rule does not grant or modify statutory authority for rulemaking and does not affect claims against alleged defects in a rule. The bill repeals a previous section of law, further streamlining the rulemaking process.

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
Senate State Affairs Engrossed, 02/20/2026: 1-26-1, 1-26-1.2, 1-26-4, 1-26-4.2, 1-26-6, 1-26-14, 1-26-2.1
Enrolled, 03/04/2026: 1-26-1, 1-26-1.2, 1-26-4, 1-26-4.2, 1-26-6, 1-26-14, 1-26-2.1