HB 1049

26.256.24  101st Legislative Session  1049
                                     2026 South Dakota Legislature
                                              House Bill 1049
                                                    ENROLLED
                                              AN ACT
ENTITLED An Act to protect electric infrastructure in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That a NEW SECTION be added to a NEW CHAPTER in title 49:
            Terms used in this chapter mean:
   (1)      "Electric facility," infrastructure in this state used for the distribution, generation,
            or transmission of electric power, including an energy conversion facility, as defined
            in § 49-41B-2, and any equipment or facilities used by an electric utility, as defined
            in § 49-34A-1, but not including any behind-the-meter electric generation facility
            that generates electricity on site for private consumption; and
   (2)      "Prohibited person," any prohibited entity, as defined in § 5-18A-1, and any
            individual who is not a United States citizen but is a citizen of a country listed in
            § 5-18A-1.
Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 49:
            A prohibited person may not control, operate, or own, in whole or in part, an
   electric facility. An electric facility controlled, operated, or owned in violation of this
   chapter is subject to forfeiture pursuant to section 5 of this Act and in accordance with the
   provisions of chapter 23A-49. De minimis stock ownership does not constitute control,
   operation, or ownership for the purpose of this section.
            An operator or owner of an electric facility may not enter into an agreement that
   grants a prohibited person direct or indirect control of the electric facility. Any agreement,
   including an easement or lease, in violation of this chapter, which is entered into on or
   after July 1, 2026, is unenforceable.
Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 49:
26.256.24  2  1049
            Any prohibited person that acquires, including by devise or descent, any interest
   in an electric facility, in violation of this chapter, shall fully divest the interest within one
   year from the date of acquisition.
Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 49:
            Upon receiving notice regarding an alleged violation of this chapter, the
   commission may investigate the allegation and, if the allegation is substantiated, may
   bring an action pursuant to section 5 of this Act.
            To pursue the action, the commission may apply to the circuit court of Hughes
   County for appointment of a receiver, who shall have duties and powers as directed by
   the court.
            Upon commencing the action, the commission may, in addition to any authority
   granted under §§ 15-6-28.2 to 15-6-28.4, inclusive, subpoena any information necessary
   to demonstrate a violation of this chapter from:
   (1)      A prohibited person alleged to have violated this chapter; or
   (2)      Any government with authority or jurisdiction over the prohibited person.
Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 49:
            The commission, or a receiver appointed pursuant to section 4 of this Act, may
   bring an action, pursuant to title 15, in the circuit court of Hughes County, to enforce the
   forfeiture or divestiture of a prohibited person's interest in the electric facility or to
   terminate an agreement in violation of this chapter.
            The commission or receiver may recover attorney fees and costs incurred in the
   enforcement of the provisions of this chapter. The attorney fees and costs may be
   assessed against the prohibited person or recovered from the sale of the prohibited
   person's interest.
            The court may not enter an order granting the request for relief pursuant to this
   section unless:
   (1)      The commission or receiver proves any alleged violation of this chapter by a
            preponderance of the evidence; and
   (2)      The action is brought within three years after the first allegation of the violation is
            referred to the commission, as provided in section 4 of this Act.
Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 49:
HB1049 ENROLLED
26.256.24  3  1049
            Notwithstanding any other provision of this chapter, title to an electric facility is
   not invalidated nor is the electric facility subject to forfeiture solely by reason of the
   alienage of any former operator or owner.
HB1049 ENROLLED
26.256.24  4  1049
An Act to protect electric infrastructure in this state.
                                                     Received at this Executive Office
 I certify that the attached Act originated in       this _____ day of _____________,
 the:
                                                     2026 at ____________M.
 House as Bill No. 1049
                                                     By
                      Chief Clerk of the House  for the Governor
                                                                      The attached Act is hereby
                                                                  approved this ________ day of
                          Speaker of the House  ______________, A.D., 2026
 Attest:
                                                                                        Governor
                      Chief Clerk of the House
                                                     STATE OF SOUTH DAKOTA,
                                                                                               ss.
                                                     Office of the Secretary of State
                       President of the Senate
                                                                    Filed ____________, 2026
 Attest:  at _________ o'clock __M.
                       Secretary of the Senate  Secretary of State
 House Bill No. 1049  By
 File No. ____  Asst. Secretary of State
 Chapter No. ______
HB1049 ENROLLED