Governor Rhoden Signs Five Key Bills to Strengthen South Dakota's Rural Infrastructure and Agriculture

Northeast Radio SD News – South Dakota - Governor Larry Rhoden has officially cleared his desk of the final legislative items of the Session, signing five key bills on Friday aimed at fortifying South Dakota’s rural infrastructure and supporting its agricultural economy.

The signatures bring the Governor’s total to 239 bills signed into law this year, with only two vetoes issued during the 101st Legislative Session.

Broadband Expansion (HB 1048)

The centerpiece of the signings is HB 1048, which authorizes the expenditure of $87 million in federal funds to expand broadband infrastructure. These funds, part of the federal Broadband Equity, Access, and Deployment (BEAD) program, will be administered by the Governor’s Office of Economic Development (GOED).

The bill includes an “emergency” clause, meaning it takes effect immediately. This allows the state to begin awarding grants to providers to bridge the “digital divide” in the state’s most remote corners.

“By investing in rural broadband, we create new opportunities for rural South Dakotans to be connected without having to relocate to find success,” Governor Rhoden said.

Water Infrastructure Development (SB 231)

In another major infrastructure move, SB 231 creates the Water Infrastructure Development Fund. The Governor signed off on a $3 million transfer from the state’s general fund to jumpstart this new account.

The fund will provide:

·         Grants: Up to 10% of estimated construction costs for rural water projects.

·         Loans: Up to 50% of estimated construction costs.

The Board of Water and Natural Resources will prioritize projects on the Bureau of Reclamation rural water projects list, ensuring that local farming communities have the water security needed for long-term growth.

Tax Relief for Farmers (HB 1254)

South Dakota producers will see a break at the cash register thanks to HB 1254. This bill creates a sales tax exemption for soil amendments used exclusively for agricultural purposes.

To qualify for the exemption:

·         The purchase must be 500 pounds or more in a single sale.

·         The product must be used for farming or ranching (agricultural purposes).

The law clarifies that “soil amendments” include manipulated manures and microbes intended to improve soil characteristics or crop production, thereby aligning their tax status with other essential agricultural inputs such as commercial fertilizers.

Expanded Hunting Opportunities for Veterans (SB 131)

For South Dakota’s veterans, SB 131 significantly expands the window during which nonprofit organizations may host special pheasant hunts for disabled veterans and Purple Heart recipients.

Previously, these hunts were restricted to a window near the regular pheasant season. The new law moves these special hunts to the private shooting preserve season, which typically runs from September 1 to March 31. This change provides more flexibility for organizers to honor those who have served. The bill also updates the legal definition of a “disabled veteran” to ensure those with a service-connected disability of 20% or more (or those receiving VA “K Awards”) are eligible.

Ag Equipment Dealer Clarity (HB 1263)

Finally, HB 1263 removes a long-standing exclusion in state law regarding agricultural equipment dealers. Previously, businesses whose primary focus was on off-road construction equipment were excluded from certain ag dealer definitions.

The new law ensures that any business in which manufacturer equipment sales exceed 30% of its total gross agricultural sales is treated as an ag equipment dealer, regardless of its other business lines. This change provides more consistent regulatory treatment and protections within the industry.

Governor Rhoden noted that with these final signings, the work of the 2026 Session is now complete. “Our ag industry and rural communities are the heartbeat of our state,” he concluded.