Watertown's Glen Vilhauer Reflects on Record-Breaking Legislative Activity
- Steve Jurrens
- Apr 6
- 3 min read
Northeast Radio SD News – Watertown, SD - State Senator Glen Vilhauer returned to familiar chambers on Monday night, delivering a “homecoming” report to the Watertown City Council on the recently concluded 2026 South Dakota Legislative Session.
Vilhauer, a former Watertown Councilman and Deputy Mayor, described a Session of unprecedented activity in Pierre, marked by a record-breaking volume of legislation and intense debates over local control and government transparency.
A Historic Volume of Legislation
The 2026 Session saw the highest number of bills introduced since 1998, with over 600 measures hitting the floor. Of those, only 240 successfully navigated the legislative process to be signed by the Governor.
Vilhauer opened his remarks with a touch of humor that resonated with his former colleagues. “I kind of jokingly say that we did enough damage for one year, so they sent us home now,” Vilhauer said. “It was challenging—there’s no doubt about that. I think anybody out there would agree to that.”
The “Attack” on TIF Districts
A primary concern for the Senator was the persistent effort to curtail Tax Increment Financing (TIF) districts—a tool that Watertown has utilized frequently for development. Vilhauer reported that early in the Session, TIFs were under heavy fire.
“There were about 11 or 12 different bills that were attacking TIFs in some form or another,” Vilhauer explained. “To the point that if those bills would have passed, they probably would have rendered TIFs almost unusable or just not of any merit.”
However, Vilhauer noted that a critical compromise was reached through Senate Bill 228. The final legislation modified certain requirements but preserved the core functionality of the financing tool.
“At the end of the day, there was some good compromise done... I think the TIFs survived for the most part. That was good for Watertown because we have taken advantage of TIFs over the years.”
New Tools for Local Funding: HB 1245
One of the most significant wins for municipalities this year was the passage of House Bill 1245. The new law allows cities to propose a temporary 1% sales tax to voters for specific capital projects, such as bridges, parks, or water infrastructure.
“The capital projects tax is a tax that a city could levy—up to an extra one percent—designated for a specific project,” Vilhauer said. “Once that money is collected and the project is taken care of, it then stops.”
He suggested this could be a vital alternative to bonding for future city needs.
Streamlining and Transparency
Vilhauer also highlighted several bills aimed at efficiency and transparency:
· Senate Bill 3: This measure prevents cities and counties from requiring building permits for minor residential repairs such as siding, windows, and doors. Vilhauer acknowledged this might cause a “minor loss of revenue” locally but would ease the burden on homeowners.
· Senate Bills 46 and 47: Part of a transparency package introduced by Attorney General Marty Jackley, these laws mandate more descriptive meeting agendas and set stricter requirements for entering and conducting executive sessions. “It expands the use of executive sessions a little bit, but also tries to curtail some abuses,” Vilhauer noted. “I think overall it’s probably some good changes.”
Leading on THC and Victim Support
Vilhauer credited Watertown for being a “trailblazer” regarding the regulation of THC-infused beverages. Following the city’s local ordinances, the state legislature passed a bill to standardize the legality and chemistry of such products statewide.
Additionally, the Session secured $5.5 million in Victims of Crime Act (VOCA) funding. This appropriation will provide a direct boost to local organizations, specifically the Beacon Center in Watertown, which Vilhauer cited as a major beneficiary of the state’s support for victim services.
A Plea for Local Control
Throughout his report, Vilhauer emphasized his commitment to protecting the authority of local boards.
“One thing that concerns me that I’ve seen the last couple years is trying to tie the hands of local bodies—such as councils, school boards, and county commissioners,” the Senator told the Council. “I hope we can continue to maintain the control that we need as a local body as we are going forward.”
Vilhauer concluded by praising the South Dakota Municipal League for their advocacy in Pierre, noting their role in keeping legislators “in tune” with the needs of cities like Watertown.
