Technology

HB 1048 appropriates $87 million in federal funds to the Governor's Office of Economic Development for grants expanding broadband infrastructure across South Dakota, primarily benefiting rural and underserved communities lacking reliable internet access. The bill authorizes the office to distribute grants under federal broadband program guidelines, with payments processed through state vouchers and audits. It declares an emergency to expedite implementation, allowing the funding to take effect immediately upon passage. Unspent funds must revert to the state treasury per standard procedures, as specified in Chapter 4-8 of South Dakota law. This is a funding measure focused on infrastructure deployment, not regulatory changes.

SB 44 allows South Dakota's Attorney General to obtain business records from internet and telecom providers during criminal investigations of internet crimes against children or human trafficking. It requires judicial approval based on "reasonable cause" before issuing subpoenas for specific records like IP addresses, account details, and device information. Hughes County judges have statewide authority to approve these subpoenas, which cannot notify account holders, and obtained records must be used solely for law enforcement with privacy safeguards. The bill directly affects providers (including internet and telecom companies) by mandating compliance with court-ordered requests for targeted data.

SB 135 requires data center operators to pay all electricity costs associated with their facilities, preventing utilities from raising residential rates to cover these expenses (Section 3). It also prohibits tax exemptions for data centers (Section 5) and ensures local governments retain authority to regulate data center development (Section 4). The bill mandates data centers to report projected water usage to local providers and the Board of Water Management before operation, with annual reports on actual consumption (Sections 6-7), ensuring water allocation prioritizes residential and essential services. This directly affects data center operators, utilities, and South Dakota residents by limiting cost-shifting and protecting local resource management.

HB 1280 prohibits drone use for surveillance, recording, or interference at South Dakota state military installations, facilities, aircraft, vehicles, or weapons systems without prior written consent from the facility commander. Violating this prohibition is classified as a Class 6 felony. The bill authorizes law enforcement to intercept or disable such drones using jamming, hacking, or physical capture - excluding firearms - if there is reasonable suspicion of an imminent threat to public safety. Drones used in violations may be forfeited, destroyed, or otherwise disposed of by court order.

SB 232 imposes a one-year moratorium (through June 30, 2027) on building new hyperscale data centers or expanding existing ones to meet the hyperscale definition in South Dakota. A "hyperscale data center" is defined as a facility with peak electrical demand of 50 megawatts or greater, used for storing, managing, and processing large volumes of electronic data. The moratorium applies to both new construction and expansions that would cause a facility to reach or exceed the 50-megawatt threshold. This bill directly affects data center developers and operators planning projects meeting the specified size criteria.

SB 168 regulates chatbots used by minors in South Dakota. It prohibits deployers (companies or developers) from making AI-companion chatbots - designed to form emotional bonds - available to minors without age verification (e.g., checking ID). Instead, deployers must implement age verification for such chatbots or remove all human-like features to allow minor access. Therapy chatbots may be offered to minors only with clear disclaimers, clinical evidence of safety/efficacy, and oversight by a licensed mental health professional who assesses suitability and monitors use. The bill also requires emergency response systems for crisis situations and limits data collection to necessary purposes.