The South Dakota Senate Committee on Appropriations convened on February 10, 2025, to discuss Senate Bill 3, which proposes an increase in driver licensing fees. The bill, presented by Angie Lemieux, the director of Administrative Services with the Department of Public Safety, aims to address the financial sustainability of the state's driver licensing program, which is self-funded through the fees collected.

Lemieux highlighted that the last fee increase occurred in 2016, when the cost for original and renewal driver licenses rose from $20 to $28. The proposed changes would raise these fees to $38 for standard licenses and $43 for commercial driver licenses (CDLs). Other adjustments include increases in various reinstatement fees, with the goal of ensuring the program remains solvent through at least fiscal year 2029.

The need for these increases stems from rising operational costs, including a significant salary policy increase of 42.6% since 2016, and the addition of an express licensing station in Sioux Falls to accommodate the city's growth. Lemieux noted that the average cost per card has risen to approximately $35.98, while the current fee structure does not cover these expenses adequately.

The committee discussed the proposed fee adjustments in comparison to neighboring states, revealing that South Dakota's fees are generally in line with those of Minnesota, Iowa, Nebraska, and Wyoming, though North Dakota's fees are notably lower due to different funding structures.

While no opponents to the bill were present during the meeting, the committee decided to defer action on Senate Bill 3 for further consideration. This decision reflects the ongoing dialogue about balancing the financial needs of state programs with the impact on residents who rely on these services. The outcome of this bill could significantly affect the funding and operation of driver licensing services in South Dakota, emphasizing the importance of community engagement in government decisions.