Updates from the South Dakota Capitol

In recent years, the legislature increased the income parameters of this program, which we feel had a positive, significant impact.

In June 2024 and 2025, AARP South Dakota had the opportunity to launch an awareness campaign using our own internal communications channels, such as emails to our members statewide, as well as radio, newspaper, digital and social media ads. The goal was to encourage more people to explore their eligibility and apply. In the coming weeks, we will share information about this year’s application process, so people know where to find eligibility and application details.

SB 43 – Digital Currency

AARP South Dakota position: Support

Current Status: Passed the Senate on January 16 and the House on March 3. It now goes to the Governor for signature.

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.

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

AARP South Dakota position: Monitoring

Current Status: All bills passed the Senate and the House and were signed by the Governor on February 17.

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.

SB 98 – Virtual Currency Kiosk (“Crypto ATM”) Fraud

AARP South Dakota position: Support

Current Status: Passed the Senate on February 17 and the House on March 3. The bill now goes to the Governor for signature.

SB 98 is AARP’s signature bill of the 2026 Legislative Session, proposing safeguards to prevent virtual currency kiosk fraud. It is not an anti-virtual currency bill but, rather, a consumer protection bill addressing virtual currency kiosk fraud by: requiring refunds for fraudulent transactions; the display of terms and conditions before a transaction, including any fees; the posting of visible warning notices related to fraudulent activity; providing paper receipts with relevant transactional information; setting daily transaction limits and licensing of 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 or prevent a South Dakotan from engaging in lawful transactions using a virtual currency kiosk.

Senate Bill 196 – Increased Income Limits for a Property Tax Assessment Freeze

AARP South Dakota position: Support

Current Status: Passed the Senate Taxation Committee on February 23 but was then defeated in the Senate on February 24.

AARP South Dakota testified in favor of Senate Bill 196 (SB 196), which would have increased the annual income limits for a property tax assessment freeze for a multi-member household from $65,000 to $85,000. When considering property tax reform, AARP South Dakota hopes our legislature will keep in mind that protecting the home as an asset is essential to ensuring that the 50-plus – and all South Dakotans – are financially secure and can age in their own homes.

Property tax remains the most burdensome tax for many of our low-income and older people. The tax is imposed on an illiquid, indivisible asset, making it difficult to pay for those with limited liquid income. At the same time, the property tax is an important source of tax revenue for South Dakota’s local governments. The property tax funds some of the government services most important and visible to our taxpayers such as schools, police, fire and parks.

Given that property taxes provide revenue for the public services that taxpayers value, effective property tax relief programs require policymakers to be strategic. To preserve revenue for essential services, property tax relief measures must be efficient and target relief to those most in need. They must also be well-designed to specifically address the financial challenges faced by taxpayers who have value in their home but may lack current cash flow to pay property taxes.

AARP South Dakota supported SB 196 because we believe it was designed with these considerations in mind. The proposed legislation was targeted at South Dakotans with the most need, an important principle for relief to help ensure that localities have the revenue they need to provide essential services.

House Joint Resolution (HJR) 5002 – Medicaid Expansion

AARP South Dakota position: Oppose

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

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.

HB 1238 – Preventing Financial Abuse

AARP South Dakota position: Support

Current Status: Passed the House on February 12 and the Senate on March 4. The bill now goes to the Governor for signature.

AARP South Dakota testified in favor of HB 1238, which protects financial institutions taking action to prevent the financial exploitation of consenting, senior or vulnerable adults, which is also known as a “Report and Hold” law. One way to combat financial abuse is to stop the criminals from getting the money they are seeking.

Report and Hold laws allow financial institutions to put a temporary hold on suspicious transactions by older and vulnerable adults while the institution reports their concerns to regulators, adult protective services (APS) and/or law enforcement. The goal is to stop the money before it leaves an account, because once it leaves, it is unlikely to be retrieved. Key components include:

• Mandatory reporting of suspected exploitation to APS (and law enforcement) and the securities regulator.
• Providing notification of the hold to the account owner and previously designated third parties (“trusted contacts”) unless they are the ones suspected of exploitation.
• Delaying disbursements for short periods of time to allow for investigations (which can be extended by an investigating agency at first, then a court if more time is needed).
• Providing immunity to the institutions for actions taken in good faith and exercising reasonable care.
• Requiring that relevant records be shared with investigators (but exempting the shared documents from the state’s public records laws).
  

HB 1138 – Home Care Agency Licensure

AARP South Dakota position: Support

Current Status: Defeated in the House Health and Human Services Committee on February 10. On February 17, it was recalled out of committee by a legislative rule called a “smoke out,” allowing it to be placed on the calendar of the full House for debate. It passed the House on February 19 and moved to the Senate Health and Human Services Committee, where it passed on March 4. It will now go to the full Senate.

HB 1138 would require the licensure of South Dakota’s non-medical home care agencies, implementing important guardrails to ensure that our state’s most vulnerable receive safe and quality care. Past AARP surveys show that individuals want to remain in their homes as they age for as long as possible. Licensed home care agencies can play an important role in supporting people striving to remain independent. Increasing the availability and quality of Home and Community-Based Services (HCBS) remains a top priority for AARP South Dakota.

HB 1146 – Physician Assistant Licensure Compact

AARP South Dakota position: Support

Current Status: Passed the House on February 17 and the Senate on February 25. It was delivered to the Governor for signature on March 3.

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.

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 and  X.