A new South Dakota law makes state licensure mandatory for non-medical home care agencies—and violations carry criminal consequences.
Most South Dakota business owners operating non-medical home care agencies don't realize they're about to face a significant new compliance requirement. HB1138, signed into law, establishes mandatory state licensure for this entire sector—and failure to comply is a Class 1 misdemeanor.
Under Section 2 of HB1138, every non-medical home care agency operating in South Dakota must obtain a state license before providing services. This isn't optional, and it's not a soft deadline. The law takes effect January 1, 2027.
Licensure comes with specific requirements that agencies must meet and maintain:
These aren't minor administrative boxes to check. They represent real operational changes—hiring practices, insurance costs, training programs, and ongoing compliance work.
If your business provides non-medical home care services in South Dakota—whether you're a sole proprietor, small agency, or larger operation—this applies to you. The law covers the sector broadly, making this the most direct compliance obligation in the bill.
This is where the stakes become clear. Operating without a license isn't treated as a civil violation or fine. It's a Class 1 misdemeanor under South Dakota law. That classification carries serious consequences for business owners and operators, including potential criminal liability.
This criminal penalty structure distinguishes HB1138 from many other business regulations. It signals that the state views unlicensed operation as a serious offense, not a paperwork oversight.
You have until January 1, 2027, to obtain licensure. That deadline may seem distant, but the licensing process itself—gathering documentation, arranging insurance, implementing training requirements, and submitting applications—takes time. Agencies should begin planning now to understand what their specific operation will need to comply.
The effective date is listed in Section 14 of HB1138.
If you operate a non-medical home care agency, review the specific requirements in your operation. Understand what your current gaps are relative to the law's standards. Consult with your insurance provider about the $250,000 liability requirement. Begin documenting your current practices and identifying what changes you'll need to make.
The transition period between now and January 2027 is your window to prepare without operating in violation of the law.
South Dakota professional services associations and chambers of commerce have developed business-specific guides to HB1138 compliance. Check with your local trade group for resources tailored to your operation.