An Act to provide limitations on liability and damages caused by a wildfire.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 20-9:

Terms used in this Act mean:

(1) "Electric utility," any electric utility, as defined in § 49-34A-1, including any entity that:

(a) Is a generator of electricity at utility scale; or

(b) Operates an electric transmission facility; and

(2) "Wildfire," an uncontrolled, unplanned, and unwanted fire burning in this state that:

(a) May impact, damage, or cause harm, including to natural resources, agricultural resources, homes and property; or

(b) Threatens lives and safety.

Section 2. That a NEW SECTION be added to chapter 20-9:

In any civil action alleging wildfire-related damages caused by an electric utility:

(1) A standard of strict liability may not be applied to the alleged actions of the electric utility;

(2) A plaintiff may not recover punitive damages unless the electric utility acted with malice or criminal intent and the electric utility's action was the actual and proximate cause of damages to the plaintiff;

(3) A plaintiff may not recover noneconomic losses from an electric utility unless the plaintiff suffered death or bodily injury in the form of a burn; and

(4) A plaintiff may recover damages from the electric utility to compensate for economic losses, as otherwise provided in chapter 21-1, and for damage to real or personal property, including vegetation, in an amount that is the least of:

(a) The cost to restore the property to its pre-wildfire condition;

(b) The cost to replace the lost use of the property; or

(c) The difference between the fair market value of the property immediately before the wildfire and the fair market value of the property after the wildfire.

An action under this section may not be maintained unless brought within three years from the date of initial ignition of the wildfire.

Nothing in this section may be construed to limit any defense that an electric utility is entitled to raise in a civil action for wildfire-related damages.