HB 1286

26.882.31  101st Legislative Session  1286
                                        2026 South Dakota Legislature
                                                House Bill 1286
                                                      ENROLLED
                                                AN ACT
ENTITLED An Act to amend the process by which moneys are distributed from the
         employer's investment in South Dakota's future fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 61-5-29.1 be AMENDED:
            61-5-29.1. There is created in the state treasury the employer's investment in
   South Dakota's future fund, to be administered by the Governor's Office of Economic
   Development, for the purpose of making grants or awards for research or economic
   development projects in this state.
            For purposes of this section, section 61-5-29.3, and sections 3 to 6, inclusive, of
   this Act, "a research or economic development project" means:
   (1)      Research or equipment required in support of key industries, universities, or
            industries determined to be viable through an economic analysis of this state, a
            specific community, or a research project;
   (2)      A scholarship for any program that prepares a student for a career field available
            in this state and is offered through:
            (a)    A public institution of higher education under the jurisdiction of the Board
                   of Regents or the South Dakota Board of Technical Education; or
            (b)    A nonpublic or tribal institution of higher education accredited by an
                   accrediting agency recognized by the United States Department of
                   Education;
   (3)      Workforce development, apprentice programs, workforce trainings, workforce
            recruitment, or career and technical education programs offered through:
            (a)    A school district;
            (b)    An accredited nonpublic secondary school;
            (c)    A state agency;
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            (d)     A public institution of higher education under the jurisdiction of the Board
                    of Regents or the South Dakota Board of Technical Education; or
            (e)     A nonpublic or tribal institution of higher education accredited by an
                    accrediting agency recognized by the United States Department of
                    Education;
   (4)      The development of infrastructure required to support economic development in
            this state;
   (5)      Projects that support business retention or expansion; and
   (6)      Recruiting:
            (a)     Out-of-state projects to this state; or
            (b)     Out-of-state workers to move to and work in a career field available in this
                    state.
Section 2. That § 61-5-29.3 be AMENDED:
            61-5-29.3. The Governor's Office of Economic Development shall provide a written
   report to the Joint Committee on Appropriations, the House Committee on State Affairs,
   the House Committee on Commerce and Energy, the Senate Committee on State Affairs,
   Senate Committee on Commerce and Energy, and the Government Operations and Audit
   Committee on an annual basis the following for each award or grant made from the fund:
   (1)      The name of the recipient and the amount of the award or grant;
   (2)      The location of the recipient;
   (3)      The research or economic development purpose being funded;
   (4)      The measures being used to determine the economic impact of the award or grant;
   (5)      The number of jobs created or retained, if any;
   (6)      The balance of the fund at the time of reporting;
   (7)      The status of the research or economic development purpose; and
   (8)      For awards or grants made more than two years prior to the report, any projection
            of jobs created or retained in this state by the recipient of the award or grant
            resulting from the research or economic development purpose since the award or
            grant was made.
            Upon the request of the chair of a committee receiving the report, pursuant to this
   section, the commissioner of the Governor's Office of Economic Development shall appear
   before the committee, to answer questions that the members of the committee may have
   on the report.
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Section 3. That a NEW SECTION be added to chapter 61-5:
            If an applicant for an award from the employer's investment in South Dakota's
   future fund is a business, the applicant must submit a business plan to the Governor's
   Office of Economic Development before the Governor may award the applicant any
   moneys from the fund. The applicant's business plan must include:
   (1)      The goods or services to be offered by the applicant;
   (2)      A description of:
            (a)    The types of jobs required to offer the goods or services;
            (b)    The educational requirement for each type of job; and
            (c)    The compensation package to be offered to individuals employed to perform
                   each type of job;
   (3)      The accounting practices employed by the business; and
   (4)      Other private or public funding received by the applicant.
Section 4. That a NEW SECTION be added to chapter 61-5:
            Moneys from the employer's investment in South Dakota's future fund may be
   awarded only to reimburse the actual cost of the research or economic development
   project.
            Before any moneys may be expended from the fund, the applicant shall sign an
   agreement with the Governor's Office of Economic Development. If the award from the
   fund exceeds one million dollars, the applicant must provide an itemized invoice of all
   expenditures made by the applicant required in furtherance of the project and
   documentation demonstrating proof of payment before any moneys may be expended
   from the fund.
            Any agreement executed pursuant to this section is open to public inspection and
   must be posted on the state's website.
Section 5. That a NEW SECTION be added to chapter 61-5:
            Before the Governor may approve the award of moneys from the employer's
   investment in South Dakota's future fund, the Governor's Office of Economic Development
   shall provide a detailed recommendation for the award to the Governor. Upon receiving
   approval for the award from the Governor, the commissioner of the Governor's Office of
   Economic Development and the applicant must sign the agreement required pursuant to
   section 4 of this Act.
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            Each agreement for an award provided pursuant to this section is open to public
   inspection and must be posted on the state's website. Any information in the agreement
   that constitutes trade secrets or other sensitive or privileged information is not open to
   public inspection. Nothing in this section may be construed to repeal or otherwise modify
   any confidentiality requirements found in state law.
Section 6. That a NEW SECTION be added to chapter 61-5:
            The Governor's Office of Economic Development shall promulgate rules, pursuant
   to chapter 1-26, establishing:
   (1)      The process by which an industry is determined to be a key industry for the
            purposes of subdivision 61-5-29.1(1);
   (2)      The process by which an individual or entity applies for an award from the
            employer's investment in South Dakota's future fund;
   (3)      The methods for assessing or estimating the economic impact, including the
            potential investment-to-impact ratio, that a research project or economic
            development opportunity will have on the state;
   (4)      The contractual provisions that must be included in the agreement signed by the
            applicant and the Governor's Office of Economic Development, including:
            (a)    Performance expectations;
            (b)    A schedule for providing performance progress reports to the Governor's
                   Office of Economic Development;
            (c)    A conflict-of-interest policy; and
            (d)    Other contractual provisions that provide for the general terms and
                   conditions of the agreement;
   (5)      The criteria for determining how a research project or economic development
            opportunity is recommended to the Governor for an award from the fund;
   (6)      Any requirements that the individual or entity applying for an award must meet in
            order to receive the award;
   (7)      If the award from the fund exceeds one million dollars, the documentation required
            to demonstrate proof of payment for all expenditures for which the applicant seeks
            reimbursement;
   (8)      The process by which an award is disbursed; and
   (9)      The process by which any moneys awarded from the fund are returned to the fund
            in the event of a change in the project's circumstances, the applicant's failure to
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            meet the established performance expectations, or the projects failure or relocation
            outside of the state.
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An Act to amend the process by which moneys are distributed from the employer's investment
in South Dakota's future fund.
                                                     Received at this Executive Office
 I certify that the attached Act originated in       this _____ day of _____________,
 the:
                                                     2026 at ____________M.
 House as Bill No. 1286
                                                     By
                     Chief Clerk of the House  for the Governor
                                                                      The attached Act is hereby
                                                                  approved this ________ day of
                          Speaker of the House  ______________, A.D., 2026
 Attest:
                                                                                        Governor
                     Chief Clerk of the House
                                                     STATE OF SOUTH DAKOTA,
                                                                                               ss.
                                                     Office of the Secretary of State
                       President of the Senate
                                                                    Filed ____________, 2026
 Attest:  at _________ o'clock __M.
                       Secretary of the Senate  Secretary of State
 House Bill No. 1286  By
 File No. ____  Asst. Secretary of State
 Chapter No. ______
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