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Updates from the South Dakota Capitol

AARP SD at the 2026 South Dakota Legislature

AARP

Published February 09, 2026

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This year’s legislature is considering over 615 bills, resolutions and commemorations. In South Dakota, every bill introduced gets a hearing, so our lawmakers have a busy agenda from January through March.

AARP South Dakota maintains a presence in Pierre to ensure we are watching issues important to South Dakotans 50-plus and their families.

As you read the updates below, House of Representatives bills are shown as “HB” plus the bill number. Senate bills are shown as “SB” and the bill number.

SB 4 – Tenant Security Deposits

AARP South Dakota position: Support

SB 4 proposes revised procedures for returning and withholding security deposits for residential premises. It ensures a clear, 21-day deposit deadline for tenants—paired with strict forfeiture if a landlord doesn’t comply—reduces the risk that tenants must bridge with credit cards, avoiding interest/fees and keeping basic expenses affordable. This is especially significant for older adults on fixed incomes, who are more frequently rent‑burdened. It also would require certain documentation to help tenants verify charges, challenge improper deductions efficiently and avoid legal costs—again supporting affordability. The guardrails provided in SB 4 on deposit handling and its enforcement mechanisms align with AARP South Dakota’s priorities on stability and affordability for older renters.

Current Status: Passed the House and Senate. Delivered to the Governor on February 5.

SB 6 – Unemployment Benefits

AARP South Dakota position: Oppose

SB 6 would reduce the maximum duration of unemployment benefits from 26 weeks to 22 weeks, which AARP South Dakota believes would have a detrimental impact on older workers in our state. Older workers face disproportionately high rates of long-term unemployment. Workers aged 55 and older consistently remain unemployed longer than their younger counterparts. During economic downturns, older job seekers can be unemployed twice as long as younger workers. Cutting the number of benefit weeks could have left many older South Dakotans exhausting their support long before they could realistically secure new employment.

Reemployment assistance is a modest but essential bridge that helps workers stay afloat while they search for their next job. SB 6 would have removed that bridge too soon, especially for older adults who experience longer job searches through no fault of their own.

Current Status: The Senate Commerce and Energy Committee voted 8-1 to send the bill to the 41^st legislative day.* (*There is no 41^st day of the South Dakota legislature. This is a method the legislature uses to defeat a bill.)

SB 43 – Digital Currency

AARP South Dakota position: Support

SB 43 addresses search and seizure provisions applicable to digital currency. It adds “digital currency” to South Dakota’s seizure laws, giving law enforcement the tools to confiscate illicit crypto assets, disrupt criminal networks hiding behind digital secrecy and strengthen protections for South Dakota consumers. The bill is not an attempt by the state to take over regulation of digital currency but, rather, to address when it is used for illegal purposes. According to the South Dakota Attorney General’s office, there are $9.3 billion in consumer scams across the country each year and $13.8 million in consumer scams in South Dakota.

Current Status: Passed the Senate on January 16. First read in the House and referred to the House Judiciary Committee on January 20.

SB 50, 51, 52, 53 and 65 – South Dakota Retirement System

AARP South Dakota position: Monitoring

The South Dakota Retirement System (SDRS) has introduced five bills that AARP South Dakota has reviewed and determined they offer no significant changes to how SDRS benefits are administered.

The South Dakota Retirement System (SDRS) serves over 85,000 active and retired public employees, including state employees, public school teachers, Board of Regents members, and employees of participating municipalities, counties, and other public entities.

SB 50 updates the reference to the Internal Revenue Code to reflect current federal law for the administration of South Dakota Retirement System statutes.
SB 51 revises certain requirements for contesting actions of the South Dakota Retirement System.
SB 52 clarifies statutes governing the administration of disability benefits by the South Dakota Retirement System.
SB 53 ensures uniformity in member identification provisions governing the South Dakota Retirement System.
SB 65 revises certain required minimum distribution provisions of the South Dakota Retirement System.

Current Status: Passed the Senate and now move to the House of Representatives.

SB 98 – Crypto ATM Fraud

AARP South Dakota position: Support

SB 98 is designed to prevent virtual currency kiosk fraud. It is not an anti-crypto currency bill but, rather, a consumer protection bill addressing virtual currency kiosk fraud and treating virtual crypto currency kiosks similarly to how we treat traditional ATMs by:

Requiring virtual currency kiosk operators to refund fraudulent transactions.
Displaying terms and conditions clearly before a transaction, including any fees charged and the exchange rate.
Posting visible notices on the kiosks that tell people what to do if they suspect fraudulent activity.
Giving paper receipts with relevant transactional information to the customer in case law enforcement needs to investigate fraudulent activity.
Setting daily transaction limits to prevent significant financial losses.
Licensing virtual currency kiosk operators with the state.

SB 98 does NOT:

Prevent the operation of virtual currency kiosks in South Dakota.
Limit the number of virtual currency kiosks an operator can have in South Dakota.
Prevent a South Dakotan from engaging in lawful transactions using a virtual currency kiosk.

In addition to AARP South Dakota, the bill has a strong list of supporters including Senator Steve Kolbeck (the prime sponsor), the South Dakota Division of Banking, the South Dakota Attorney General, Coin Lion (a cryptocurrency company), the South Dakota Bankers Association, the Dakota Credit Union Association, Black Hills Federal Credit Union, the South Dakota State’s Attorney Association and the Better Business Bureau.

Current Status: First read in the Senate and referred to the Senate Commerce and Energy Committee. Hearing scheduled for February 10.

House Joint Resolution (HJR) 5002 – Medicaid Expansion

AARP South Dakota position: Oppose

HJR 5002 would have placed a question on the 2026 ballot asking voters to repeal Medicaid expansion. AARP South Dakota has continually pushed for the state to maintain a straightforward Medicaid expansion, and efforts such as HJR 5002 only serve to divert attention from pursuing a lasting solution to the state’s coverage gap.

An overwhelming majority of South Dakota voters passed Amendment D in November 2022, extending health care coverage to thousands of their friends and neighbors who fell into a coverage gap – either working for an employer that did not provide health insurance or earning too little to afford it. Repealing Medicaid expansion could leave thousands of South Dakotans without coverage for needed preventive and chronic care services, potentially resulting in deteriorating health conditions that could require costly, uncompensated emergency room use or inpatient hospitalizations.

The vast majority of adults enrolled in Medicaid expansion are working, caregiving, in school or suffering from illness or disability. Without the access to care that Medicaid expansion provides, those who cannot afford care pay in a human toll – not being able to fill needed prescriptions, plunging into debt and bankruptcy due to health care costs and, sadly, dying from diseases that are treatable if discovered early.

Current Status: Defeated on the House of Representatives floor on a 39-27 vote.

HB 1138 – Home Care Agency Licensure

AARP South Dakota position: Support

HB 1138 requires the licensure of South Dakota’s non-medical home care agencies. This will implement important guardrails to ensure that our state’s most vulnerable receive safe and quality care.

Current Status: Introduced in the House and referred to the House Health and Human Services Committee.

HB 1146 – Physician Assistant Licensure Compact

AARP South Dakota position: Support

HB 1146 creates an efficient way for physician assistants (PAs) licensed in one compact state to practice in other compact member states without having to apply for and obtain multiple state licenses. This streamlined approach improves health care access while maintaining public safety and supporting employment opportunities for PAs.

Current Status: Introduced in the House and referred to the House Health and Human Services Committee.

Catch a Cracker Barrel

The Associated School Boards of South Dakota keeps an ongoing list of legislative cracker barrels scheduled in South Dakota communities. If you don’t see your community listed, talk with your legislators or your local Chamber of Commerce to see if any sessions will be scheduled during this legislative session.

Stay tuned for more updates from Pierre!

If you ever have questions about legislative issues, please email us at sdaarp@aarp.org. And, be sure to stay connected with us on Facebook, Instagram and X.