April 16, 2025

This piece is sponsored by Woods Fuller.

By Justin G. Smith, Woods Fuller shareholder

On Jan. 25, Larry Rhoden was sworn in as South Dakota’s 34th governor. The rancher from Union Center has a long history of public service to the state, including 16 years in the Legislature and six years as lieutenant governor. For his lieutenant governor, Rhoden selected Sioux Falls legislator Tony Venhuizen.

In his inaugural address, Rhoden declared that he wants South Dakota to be “Open for Opportunity.” This represents a shift from Gov. Kristi Noem’s declaration five years ago that South Dakota is “Open for Business.” Rhoden’s address focused on more than business opportunities, referencing a need for opportunities for families, communities, farmers and ranchers, children seeking careers and South Dakotans seeking jobs.

After taking office, Rhoden signed 211 bills into law. During the legislative session, his office focused on property tax relief and the proposed new men’s penitentiary. Rhoden worked hard to pass SB 216, which reduces growth in the assessed value of owner-occupied properties, among other changes. The intent of the bill was to slow the rate by which residential property taxes have been increasing in South Dakota.

When the Legislature failed to appropriate additional necessary funding for a new men’s penitentiary, Rhoden launched Project Prison Reset to investigate other options for the dilapidated men’s prison in Sioux Falls.

Rhoden also issued two gubernatorial vetoes during the session: HB 1132 would have expanded state-funded child care benefits for staff of child care providers, and HB 1169 would have required signatures for initiated constitutional amendments to be gathered from every legislative district in the state.

Immediately after the legislative session ended, Rhoden launched his Open for Opportunity tour. He began traveling to communities across the state to meet with South Dakotans on a host of issues. While some of  Rhoden’s tour stops have been at businesses, he also has held open forums to hear from residents on many other issues. This represents an important shift in focus from business interests and opportunities to a broader range of topics.

Since his inauguration, Rhoden has expressed support for school vouchers, law enforcement, Second Amendment rights, predictable government regulation and government efficiency. One of the bills he signed during the session — HB 1052 — prohibits the use of eminent domain in South Dakota for CO2 pipelines. This legislation had been opposed by a long list of South Dakota groups, including the ethanol industry. After the passage of that bill, Summit Carbon Solutions suspended its permit applications before the South Dakota Public Utilities Commission.

Going forward, South Dakota businesses and other groups, including Woods Fuller, will closely follow the priorities of the Rhoden administration. The private sector has partnered with Rhoden in the past during his time in the Legislature. Now that he is the chief executive officer for the state, Rhoden’s focus understandably has shifted more broadly. He clearly remains committed to the same core values he has held for his entire political career. Even so, Rhoden has taken the initiative to travel the state to hear from community and business leaders on the key issues facing South Dakotans today.

Our clients are encouraged to contact the governor’s office to share their perspective. These perspectives will help Rhoden and his administration form priorities for state government in 2026 and beyond.

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