House adopts licensure for nonmedical home‑care agencies, requiring insurance, background checks and modest fee
February 15, 2026 | 2026 Legislature SD, South Dakota
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The South Dakota House on Feb. 19 passed House Bill 11‑38, a measure that establishes basic licensure requirements for nonmedical home‑care agencies.
Sponsor Representative Heurman told colleagues the bill “creates some basic guardrails” including proof of professional liability insurance, attestation of background checks and training for paid staff, and a licensure fee not to exceed $100. “These are reasonable protections,” Heurman said, arguing the measure formalizes practices many reputable agencies already follow and is narrowly tailored to nonmedical agencies rather than family volunteers.
Opponents said the bill could harm small, often part‑time operators. Representative Schaeffbauer said regulations and fees can force small businesses to close, comparing the effect to what happened to some in‑home day‑care providers. Other members raised concerns about administrative burden, the proposed 10‑hour training requirement, and whether attestation (paper documentation) would be sufficient without meaningful enforcement.
Supporters pointed to risks to vulnerable residents. Representative Whitman, who described having family experience with in‑home care, said basic training and background checks are not burdensome and are necessary to protect people who cannot advocate for themselves. Representative Van Diepen argued the proposal protects “the vulnerable population out there” and urged a green vote.
The sponsor and supporters repeatedly distinguished the bill’s target—paid, contracted agency workers (W‑2 or 1099 compensated)—from unpaid family helpers. The sponsor said family caregivers and Medicaid waiver programs are not affected by HB11‑38. The House approved the bill as amended; the clerk announced the vote as ayes 41, nays 25, excused 4, and declared the bill passed.
The bill’s immediate next step is enrollment and transmittal for the speaker’s signature and further processing per legislative rules.
Sponsor Representative Heurman told colleagues the bill “creates some basic guardrails” including proof of professional liability insurance, attestation of background checks and training for paid staff, and a licensure fee not to exceed $100. “These are reasonable protections,” Heurman said, arguing the measure formalizes practices many reputable agencies already follow and is narrowly tailored to nonmedical agencies rather than family volunteers.
Opponents said the bill could harm small, often part‑time operators. Representative Schaeffbauer said regulations and fees can force small businesses to close, comparing the effect to what happened to some in‑home day‑care providers. Other members raised concerns about administrative burden, the proposed 10‑hour training requirement, and whether attestation (paper documentation) would be sufficient without meaningful enforcement.
Supporters pointed to risks to vulnerable residents. Representative Whitman, who described having family experience with in‑home care, said basic training and background checks are not burdensome and are necessary to protect people who cannot advocate for themselves. Representative Van Diepen argued the proposal protects “the vulnerable population out there” and urged a green vote.
The sponsor and supporters repeatedly distinguished the bill’s target—paid, contracted agency workers (W‑2 or 1099 compensated)—from unpaid family helpers. The sponsor said family caregivers and Medicaid waiver programs are not affected by HB11‑38. The House approved the bill as amended; the clerk announced the vote as ayes 41, nays 25, excused 4, and declared the bill passed.
The bill’s immediate next step is enrollment and transmittal for the speaker’s signature and further processing per legislative rules.
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