ALEC Policy Champions Enhance Legislative Oversight of Major Rules in South Dakota

ALEC is honored to recognize South Dakota Sen. Sue Peterson and Rep. Al Novstrup as ALEC Policy Champions for bringing REINS-style legislation to the Mount Rushmore State. Gov. Larry Rhoden signed SB 133 into law on March 12, making South Dakota the 10th state to enact this type of reform and the first to do so in 2026.

SB 133 is a REINS-style law that requires legislative committee review and potential legislative approval for new executive agency rules expected to cost $3 million or more over two years. Any proposed “major rules” must be submitted to the legislature’s Interim Rules Review Committee (IRCC) for review. The IRRC may then recommend changes to bring the rule’s cost below the threshold, find that existing statutory authority allows the rule to be promulgated, or recommend a full vote of the legislature to enact or disapprove the rule.

Gov. Rhoden underscored the importance of the reform at the signing by stating, “South Dakota is Open for Opportunity, and we are the second least-regulated state in the nation. This bill will implement commonsense measures to keep us that way. The REINS Act will improve transparency and accountability in state agency decision making. Regulations should be as limited and targeted as they can be, and this bill will help us achieve that.”

SB 133 passed the South Dakota Senate by a vote of 33-0 and was passed by the South Dakota House of Representatives by a vote of 66-1.

SB 133 returns rulemaking authority to state legislators, much like the Targeted Legislative Review Act, one of the ALEC Essential Policy Solutions for 2026. This model policy creates a Legislative Economic Analysis Unit (LEAU) to perform independent economic analysis of proposed rules. If the LEAU determines that a proposed rule qualifies as a “major rule,” it cannot be implemented without approval from the legislature.

Congratulations to Sen. Sue Peterson and Rep. Al Novstrup for limiting agency overreach and returning accountability to the rulemaking process in South Dakota!