This bill establishes public benefit corporations in South Dakota, introducing a new chapter in Title 47 that outlines the requirements and definitions related to these entities. A public benefit corporation is defined as a for-profit corporation organized under existing law that aims to produce a public benefit. The bill specifies that corporations can elect to pursue either a general public benefit, a specific public benefit, or both, and mandates that their articles of incorporation reflect this choice. Additionally, the bill requires public benefit corporations to file an annual benefit report detailing their performance in creating or pursuing the stated public benefits, and it establishes procedures for revocation of public benefit status if reporting requirements are not met.

The legislation also outlines the governance structure for public benefit corporations, emphasizing the need for directors to balance shareholder interests with the public benefits identified in the corporation's articles. Shareholders are granted the right to assert claims against the corporation or its directors for failing to pursue the stated public benefits, although the corporation is not liable for monetary damages in such cases. The bill includes provisions for the amendment of articles of incorporation, shareholder dissent rights, and the process for terminating public benefit status. The act is set to take effect on July 1, 2027.