SB 4 — revise procedures for returning and withholding security deposits for residential premises.

26.35.2226.35.23 101st Legislative Session 4 South Dakota Legislature Senate Bill 4 IntroducedENROLLED by:A N A CT ENTITLED An Act to revise procedures for returning and withholding security deposits for residential premises.

SenatorB RohlE AnIT ActENACTED toBY reviseTHE proceduresLEGISLATURE forOF returningTHE andSTATE withholdingOF securityS depositsOUTH forD residentialAKOTA premises.:

B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF SOUTH D AKOTA :

Every lessor of residential premises shall, within two weeks twenty-one days after the termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the security deposit described in § 43-32-6.1 to the tenant,tenant or furnish to the tenant,tenant a written statement showing the specific reason for the withholding of the deposit, or any portion thereof of the deposit.

The lessor may withhold from such the deposit only such the amounts as are reasonably necessary toto: remedy:

(1) Remedy tenant defaults in the payment ofof: rent or of other:

and (b) Other funds due to the landlord pursuant to an agreementagreement; or to restore;

Within forty-five days after termination of the tenancy, upon request of the lessee, the lessor shall must provide the lessee with an itemized accounting of any deposit withheld.

Any lessor of residential premises who fails to comply with this section shall forfeit forfeits all rights to withhold any portion of such the deposit.

The bad faith retention of a deposit, or any portion of a deposit, by a lessor of residential premises, in violation of this section, including or the bad faith failure to provide the written statement and or itemized accounting, as required by this section, shall subject subjects the lessor to punitive damages not to exceed two hundred dollars.

Overstrikes26.35.23 indicate2 deleted4 language.An Act to revise procedures for returning and withholding security deposits for residential premises.

Received at this Executive Office I certify that the attached Act originated in this _____ day of _____________, the:

at ____________M.

Senate as Bill No.

4 By Secretary of the Senate for the Governor The attached Act is hereby approved this ________ day of President of the Senate ______________, A.D., 2026 Attest:

Governor Secretary of the Senate STATE OF SOUTH DAKOTA, ss.

Office of the Secretary of State Speaker of the House Filed ____________, 2026 Attest:

at _________ o'clock __M.

Chief Clerk of the House Secretary of State Senate Bill No.

4 By File No.

____ Asst.

Secretary of State Chapter No.

______ SB4 ENROLLED