Government Outreach Update February 18, 2026

Committees are under pressure this week to finish holding public hearings on all the bills assigned to them. Next Tuesday is Crossover Day, which is the deadline for bills to pass their house of origin and cross over to the other side.

The Appropriations Committee adopted a $2.5 billion general fund revenue target for FY2027. That is about one percent more than the Governor proposed in his December budget address. Discussions are already underway about the best ideas for how to allocate the additional money. Governor Rhoden has suggested giving state employees, teachers, and community support providers a one percent salary boost; others are pushing for higher increases for the Big Three.

Smoking is prohibited in the Capitol building. However, smoking a bill out of committee is allowed under legislative rules. This is a way to revive a bill that has died in committee, forcing the committee to deliver it to the floor for consideration. Yesterday several bills were smoked out, and it’s probable more will be coming.

Another legislative maneuver that is common on controversial issues is the “reconsideration.” This allows a legislator to ask that the body be allowed to vote again on a bill. Again, there were several reconsiderations yesterday. One of those was notice of intent to reconsider the vote on the bill to keep the 4.2% sales tax permanent, which lost on a 17-17 tie in the Senate.

Today is the day when many data center bills will be heard in committee. Bills cover topics such as protecting consumers from electric rate hikes, limiting water use, requiring setbacks from residences, giving tax exemptions, and prohibiting state agencies or political subdivisions from entering into nondisclosure or confidentiality agreements concerning building or siting a data center.

A few bill updates:

• SB 160, to require registration of fishing guides, was deferred to the 41^st Day by the Senate Ag Committee.
• HB 1209, requiring employers to verify employee eligibility through the E-verify program, passed the House on a 49-13 vote and was sent to the Senate.
• HB 1245, which would allow municipalities to impose a one-cent gross receipts tax to pay for capital improvement projects, was assigned to the Senate Local Government committee.
• The Governor has signed HB 1058 to require licensure for online pari-mutuel wagering pools for horse and dog races.
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For comprehensive legislative information please visit the Legislative Research Council Website at https://sdlegislature.gov 

If you would like to contact our area legislators:

Senator Jim Mehlhaff -  Jim.Mehlhaff@sdlegislature.gov

Representative Will Mortenson - Will.Mortenson@sdlegislature.gov

Representative Mike Weisgram - Mike.Weisgram@sdlegislature.gov