SB 229

 26.201.30  101st Legislative Session  229
                                      2026 South Dakota Legislature
                                              Senate Bill 229
                                               SENATE EDUCATION ENGROSSED
 Introduced by: Senator Nelson
1 An Act to require an election to approve the issuance of certain capital outlay
2certificates, lease-purchase contracts, or installment purchase contracts.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
4 Section 1. That § 13-16-6.2 be AMENDED:
513-16-6.2. The school board of any school district may issue capital outlay
6     certificates to acquire or construct real property, plant, or equipment. All capital outlay
7     certificates shall must be authorized, issued, and sold in accordance with the provisions
8     of chapter 6-8B. However, no election other than as provided in §§ 13-16-6.3 and 13-16-
9     6.4 may be held, and the, except as otherwise provided in § 13-16-6.4. The certificates
10     may not have a maturity date in excess of twenty years from the date of issuance.
11 Section 2. That § 13-16-6.3 be AMENDED:
1213-16-6.3. Any A proposed installment purchase contract, lease-purchase, or
13     issue issuance of capital outlay certificates authorized pursuant to § 13-16-6 or 13-16-6.2
14     which will obligate the school district for future payments on the principal, the total of
15     which will exceed one and one-half percent of the taxable valuation of taxable property
16     within the district, may not be entered into, or certificates issued, unless prior thereto the
17     school board conducts a public hearing thereon after having given notice by publication at
18     least twice in its official newspaper at least ten days before the hearing. Upon Except as
19     otherwise provided in this section, the hearing the board may approve the action or may
20     refer the matter to the voters of the district.
21A proposed installment purchase contract, lease-purchase, or issuance of outlay
22     certificates authorized pursuant to § 13-16-6 or 13-16-6.2, which obligate the district to
23     future payments, or with a maturity date, in excess of ten years, may not be issued or
24     entered into unless the board refers the matter to the voters of the district.
                                                                                Underscores indicate new language.
                                                                              Overstrikes indicate deleted language.
 26.201.30  2  229
1 Section 3. That § 13-16-6.4 be AMENDED:
213-16-6.4. Approval Except as otherwise provided in this section, approval to
3    enter into an agreement or issue capital outlay certificates pursuant to § 13-16-6.3 is
4    subject to a referendum if five percent of the registered voters, based upon the total
5    number of registered voters at the last preceding general election, petition, within twenty
6    days thereafter, to have the question of approval to enter into the agreement or issue
7    capital outlay certificates placed upon the ballot at a. The board of a school district may
8    issue capital outlay certificates pursuant to §§ 13-16-6.2 and 13-16-6.3, with a maturity
9    date in excess of ten years from the date of issuance, only if the question of issuing the
10    capital outlay certificates is approved by the voters of the district.
11A special election called for that purpose and the purposes provided in this section
12    must be held on:
13    (1)      The first Tuesday after the first Monday in March;
14    (2)      The first Tuesday after the first Monday in June; or
15    (3)      The first Tuesday after the first Monday in November.
16If the bond election is held on a date listed in subdivision (2) or (3) in an even-
17    numbered year, the election must be held in conjunction with the regular primary or
18    general election, respectively. When the election is held in conjunction with the primary
19    or general election, the expenses and governmental responsibilities of a combined election
20    must be shared in a manner agreed upon by the board of the school district and the boards
21    of county commissioners involved.
22The business manager shall give notice that the question is to be on the ballot at
23    the regular or special election, as provided by law for school elections, and prepare official
24    ballots therefor according to the provisions of this title. Approval of the question to enter
25    into an agreement or issue capital outlay certificates requires an affirmative vote of at
26    least sixty percent of those voting on the question.
27If the question submitted to the voters at an election is not approved by the voters,
28    the school board may, by resolution, place the question on the ballot at the next available
29    election provided by this section.
                                                                                Underscores indicate new language.
                                                                              Overstrikes indicate deleted language.