South Dakota Legislative Session Wraps Up with Positive Outlook for Retailers

Northeast Radio SD News – Watertown, SD - As the South Dakota legislative Session came to a close on Thursday, March 12, 2026, Nathan Sanderson, Executive Director of the South Dakota Retailers Association (SDRA), shared a positive outlook for the state’s business community.

In an interview with news broadcaster Steve Jurrens from Northeast Radio SD on Friday, March 13, Sanderson highlighted the record-breaking number of bills introduced this Session and the SDRA’s active role in advocating for its members.

A Prolific Session for Business

Sanderson noted that this year was “a very prolific year for bills introduced,” with 570 bills brought forward, the most in a couple of decades. The SDRA was actively involved in tracking 240 of those bills, representing over 40% of the total legislation introduced.

“It was an interesting one for the South Dakota Retailers Association... we’re the retailers association, restaurant, hospitality, grocery, we have a lot of tradespeople who are members. And so, we’re actively, actively involved in the legislative Session.” - Nathan Sanderson.

Budget and Revenue Growth

One of the most significant developments of the Session was the improvement in revenue estimates, which enabled the legislature to allocate more funding to key areas. While Governor Rhoden initially proposed 0% increases for state employees, healthcare providers, and education in December, the legislature ultimately provided a 1.4% increase for these “big three” areas in the fiscal year 2027 budget.

Sanderson credited the Bureau of Finance and Management and the Legislative Research Council for their efforts to project revenues and expenses over an 18-month period.

New Regulations for Nicotine Products

The Session also saw the passage of legislation to regulate nicotine and vaping products. Starting July 1, 2026, wholesalers of these products will be required to pay a $1,000 registration fee and obtain a license from the Department of Revenue. Retailers will also face new licensing requirements, with a $200 fee for businesses where nicotine products make up less than half of their sales, and a $300 fee for those where it exceeds 50%.

“Every single business, grocery store, convenience store, whatever, that sells vaping products... all of those businesses now, as of July 1st of this year, are going to need to get a license from the Department of Revenue.” - Nathan Sanderson

Full implementation of these licensure provisions is set for January 1, 2027.

Changes to SNAP and Soft Drinks

House Bill 1056, which the Governor has already signed, requires the state to request a federal waiver to exclude soft drinks from SNAP-eligible foods. While the definition of “soft drinks” in the bill is still being clarified, Sanderson noted that products like Pedialyte, Powerade, and Gatorade will likely be affected.

The state must submit the waiver request by September 1, 2026, with implementation expected within six months of federal approval. Sanderson emphasized the challenges this change could pose for retailers, particularly the need to update the list of eligible products regularly.

E-Verify Bill Fails

In a move welcomed by the SDRA, House Bill 1209, which would have required businesses with more than 50 employees to use the federal E-Verify program for all new hires, failed to pass. Sanderson noted that the bill would have imposed significant penalties for non-compliance, up to $2,000 per violation.

“This is one example of just a number of the new regulations that this legislature was attempting to put on businesses, and luckily, we were able to put that bill to bed.” - Nathan Sanderson.

Expansion of Fundraising Opportunities

On a lighter note, Sanderson highlighted the passage of House Bill 1201, which allows booster clubs to use bingo and pull-tabs for fundraising. This change, set to take effect July 1, 2026, clarifies existing law and provides new opportunities for local retailers to partner with non-profit organizations.

Looking Ahead to Elections

With the primary elections approaching on June 2, 2026, Sanderson underscored the importance of business owners’ engagement in the political process. Early voting begins April 17, 2026.

“If anybody’s following what has happened in the legislature over the last number of years, it’s very clear elections matter... getting the right people, civic-minded people, people who are thoughtful about things... all of those things are tremendously important if we want to see the policies implemented that actually move our state forward.” - Nathan Sanderson.

The SDRA continues to serve as a resource for its 4,000 member businesses across South Dakota, providing information, advocacy, and money-saving services. For more information, visit sdra.org.