On Feb. 24, 2025, SD LEG reported SB 81 was approved, effective on Jul. 1, 2025.
On Feb. 11, SD LEG passed bill on prohibition of use of firearms code.
SD LEG passed bill SB 81 on prohibitions on financial institutions re use of firearms code for transactions involving firearms, accessories, components, or ammunition.
Limitations on Financial Institutions
Added new sections to South Dakota codified laws, SD LEG 37, Trade Regulation.
Financial institution or agent may not require use of firearms code in way distinguishes firearms dealer physically in SD from general merchandise or sporting goods retailer.
A financial institution may not discriminate against firearms dealer by declining lawful payment card transaction solely on assignment or non-assignment of firearms code.
Cannot limit or decline to do business with customer, potential customer, or merchant, based on assignment, non-assignment of firearms code to prior lawful transactions.
Also, financial institution cannot charge merchant higher transaction, interchange fee for lawful transaction based on the assignment or non-assignment of a firearms code.
Cannot take action against customer, merchant with intent suppress lawful commerce.
Legislative History
On Jan. 21, 2025, bill introduced into Senate; on Jan. 30, 2025, bill passed Senate.
On Feb. 3, 2025, bill introduced into House; on Feb. 11, 2025, bill passed by House.
Effectiveness
If approved, SD law states that no law takes sooner than 90 days after the legislative session, effective date of bills passed during the regular session set for Jul. 1, 2025.
Feb. 24, 2025 SD LEG Bill Approval
On Feb. 24, 2025, SD LEG reported SB 81 was approved, effective on Jul. 1, 2025.
Regulators
SD LEG
Entity Types
Bank
Reference
Act, 2/24/2025; Bill SB81, 2/11/2025; Citation: SD LEG 37;
