South Dakota

Title

Key Dates

Nature of
Action

ESG Category

Summary

SB81: Prohibit Use of Firearm Code for Transactions Involving Firearms

Introduced 1/17/2025

Adopted 2/25/2025

Legislation

Target Entities That Boycott Certain Industries

■ Prohibits financial institutions and their agents from requiring the use of a firearms code in a way that distinguishes a firearms dealer located in South Dakota from a general merchandise or sporting goods retailer located in South Dakota.

■ Prohibits financial institutions from (i) declining payment card transactions based solely on the (non-)assignment of a firearms code to the merchant or transaction, (ii) limiting or declining to do business with a customer or merchant based on the (non-)assignment of a firearms code in a previous lawful transaction with the person, (iii) charging a merchant a higher transaction fee or interchange fee based on the (non-)assignment of a firearms code, or (iv) taking any other action against a customer or merchant with the intent of suppressing lawful commerce involving firearms based on the customer's or merchant's business involving firearms.

■ Requires the Attorney General to pursue an injunction against an individual or entity that continues to be in violation of this Act 30 days following receipt of written notice from the Attorney General. Requires the court to issue such injunction on finding such continuing violation, or on finding any violation of this Act, and to impose a civil penalty of $25,000 or actual damages for each knowing and willful violation occurring after the 30th day following the issuance of the injunction.

Title

Key Dates

Nature of
Action

ESG Category

Summary

HB1247: Provide consumer protection through fair access to financial and insurance products and services.

Introduced, but did not pass in 2024 legislative session

Legislation

Prohibit Discrimination on Basis of Social Credit or ESG Scores

■ Declares it an unsafe or unsound practice for financial institutions to deny or cancel their services to a person, or to otherwise discriminate against a person in making available such services or in the terms or conditions of such services, on the basis of any factor that is not quantitative, impartial, and risk-based standard; the use of any criteria that considers social credit score; and other factors.

■ Declares it an unsafe and unsound practice for financial institutions to deny or cancel their services to a person, or otherwise discriminate against a person, for their failure to meet ESG standards as long as such person is in compliance with applicable state or federal law.

HB1207: Prevent financial service providers from denying services based on certain grounds

Introduced, but did not pass in the 2023 legislative session

Legislation

Prohibit Discrimination on Basis of Social Credit or ESG Scores

■ Prohibits financial institutions from denying any person a financial service except to the extent justified by the person's documented failure to meet quantitative, impartial risk-based financial standards established in advance by the financial institution.

■ Financial institutions that offer public financial services that utilize ESG criteria must disclose the standards and guidelines of such ESG criteria to the State Banking Commission or Division of Insurance, as may be appropriate.

HCR6008: Affirming, supporting, and defending certain principles, values, and goals

Introduced, but did not pass in the 2023 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Resolution affirming, supporting, and defending certain principles, values, and goals stating, among many items that government should not compete with private enterprise and the implementation of environmental, social, and governance standards should be opposed.

SB182: Prohibits Discriminatory Actions against Persons Engaged with the Firearm Industry

Introduced, but did not pass in the 2022 legislative session

Legislation

Target Entities That Boycott Certain Industries

■ Prohibits South Dakota state agencies or public officials or employees from entering into contracts with a bank or person engaged in money transmission for a financial service unless there is written verification such entity or person does not have any policy or other directive requiring discrimination against firearm entities or firearm trade associations.

■ The Governor may waive this requirement if notified by the Bureau of Finance and Management that this prohibition may prevent an action necessary for sound fiscal management of the state.