The amendment significantly broadens the bill by expanding scholarship eligibility beyond just Board of Regents and technical education institutions to include any accredited nonpublic or tribal colleges, and restructures workforce development programs to explicitly include school districts, state agencies, and accredited nonpublic secondary schools as eligible providers. Additionally, the amendment changes reporting requirements from biannual to annual basis, which increases oversight frequency on fund distribution.
26.882.29 26.882.30 101st Legislative Session 1286 2026 South Dakota Legislature House Bill 1286 HOUSE STATE AFFAIRS ENGROSSED Introduced by: Representative Overweg Underscores indicate new language. Overstrikes indicate deleted language. An Act to amend the process by which moneys are distributed from the employer's 1 investment in South Dakota's future fund. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 61-5-29.1 be AMENDED: 4 61-5-29.1. There is hereby created in the state treasury a special revenue fund 5 to be known as the employer's investment in South Dakota's future fund. Moneys in the 6 fund must be used for purposes related to, to be administered by the Governor's Office of 7 Economic Development, for the purpose of making grants or awards for research and or 8 economic development for the projects in this state. 9 For purposes of this section, section 61-5-29.3, and sections 3 to 6, inclusive, of 10 this Act, "a research or economic development project" means: 11 (1) Research or equipment required in support of key industries, universities, or 12 industries determined to be viable through an economic analysis of this state, a 13 specific community, or the a research project; 14 (2) Scholarships to postsecondary educational institutions operated by the Board of 15 Regents or the South Dakota Board of Technical Education, provided A scholarship for any program that the 16 scholarships are for programs that prepare prepares a student for a career field available 15 in 17 this state; 18 (3) Workforce development, apprentice programs, workforce trainings, workforce 19 recruitment, or career state and technical is offered through: 16 (a) A public institution of higher education programs offered through a school 20 district, accredited nonpublic school, or institution subject to oversight by under the jurisdiction of the Board 21 17 of Regents or the South Dakota Board of Technical Education; or 18 (b) A nonpublic or tribal institution of higher education accredited by an 19 accrediting agency recognized by the United States Department of 20 Education; 21 (3) Workforce development, apprentice programs, workforce trainings, workforce 22 recruitment, or career and technical education programs offered through: 23 (a) A school district; 24 (b) An accredited nonpublic secondary school; 25 (c) A state agency; 26 26.882.30 2 1286 Underscores indicate new language. Overstrikes indicate deleted language. (d) A public institution of higher education under the jurisdiction of the Board 1 of Regents or the South Dakota Board of Technical Education; or 2 (e) A nonpublic or tribal institution of higher education accredited by an 3 accrediting agency recognized by the United States Department of 4 Education; 5 (4) The development of infrastructure required to support economic development in 23 6 this state; 24 7 (5) Projects that support business retention or expansion; and 25 26.882.29 2 1286 Underscores indicate new language. Overstrikes indicate deleted language. 8 (6) Recruiting out-of-state Recruiting: 9 (a) Out-of-state projects to this state; or 10 (b) Out-of-state workers or projects to move to and work in a career field 1 available in this 11 state. 2 12 Section 2. That § 61-5-29.3 be AMENDED: 3 13 61-5-29.3. The Governor's Office of Economic Development shall provide a written 4 14 report to either the Joint Committee on Appropriations or the Interim Committee on 5 15 Appropriations, the House Committee on State Affairs, the House Committee on 6 16 Commerce and Energy, the Senate Committee on State Affairs, Senate Committee on 7 17 Commerce and Energy, and the Government Operations and Audit Committee on a 8 18 biannual an annual basis the following for each award or grant made from the fund: 9 19 (1) The name of the recipient and the amount of the award or grant; 10 20 (2) The location of the recipient; 11 21 (3) The research or economic development purpose being funded; 12 22 (4) The measures being used to determine the economic impact of the award or 13 grant;and 14 grant; 23 and 24 (5) The number of jobs created or retained, if any; 15 25 (6) The balance of the fund at the time of reporting; 16 26 (7) The status of the research or economic development purpose; and 17 27 (8) For awards or grants made more than two years prior to the report, any projection 18 28 of jobs created or retained in this state by the recipient of the award or grant 19 29 resulting from the research or economic development purpose since the award or 20 30 grant was made. 21 31 Upon the request of the chair of a committee receiving the report, pursuant to this 22 32 section, the commissioner of the Governor's Office of Economic Development shall appear 23 33 26.882.30 3 1286 Underscores indicate new language. Overstrikes indicate deleted language. before the committee, to answer questions that the members of the committee may have 24 1 on the report. 25 2 Section 3. That a NEW SECTION be added to chapter 61-5: 26 3 If an applicant for an award from the employer's investment in South Dakota's 27 4 future fund is a business, the applicant must submit a business plan to the Governor's 28 5 Office of Economic Development before the Governor may award the applicant any 29 6 moneys from the fund. The applicant's business plan must include: 30 7 (1) The goods or services to be offered by the applicant; 31 8 (2) A description of: 32 9 (a) The types of jobs required to offer the goods or services; 33 26.882.29 3 1286 Underscores indicate new language. Overstrikes indicate deleted language. 10 (b) The educational requirement for each type of job; and 1 11 (c) The compensation package to be offered to individuals employed to perform 2 12 each type of job; 3 13 (3) The accounting practices employed by the business; and 4 14 (4) Other private or public funding received by the applicant. 5 15 Section 4. That a NEW SECTION be added to chapter 61-5: 6 16 Moneys from the employer's investment in South Dakota's future fund may be 7 17 awarded only to reimburse the actual cost of the research or economic development 8 18 project. 9 19 Before any moneys may be expended from the fund, the applicant shall sign an 10 20 agreement with the Governor's Office of Economic Development. If the award from the 11 21 fund exceeds one million dollars, the applicant must provide an itemized invoice of all 12 22 expenditures made by the applicant required in furtherance of the project and 13 23 documentation demonstrating proof of payment before any moneys may be expended 14 24 from the fund. 15 25 Any agreement executed pursuant to this section is open to public inspection and 16 26 must be posted on the state's website. 17 27 Section 5. That a NEW SECTION be added to chapter 61-5: 18 28 Before the Governor may approve the award of moneys from the employer's 19 29 investment in South Dakota's future fund, the Governor's Office of Economic Development 20 30 shall provide a detailed recommendation for the award to the Governor. Upon receiving 21 31 26.882.30 4 1286 Underscores indicate new language. Overstrikes indicate deleted language. approval for the award from the Governor, the commissioner of the Governor's Office of 22 1 Economic Development and the applicant must sign the agreement required pursuant to 23 2 section 4 of this Act. 24 3 Each agreement for an award provided pursuant to this section is open to public 25 4 inspection and must be posted on the state's website. Any information in the 26 recommendation agreement 5 that constitutes trade secrets or other sensitive or privileged information 27 is not open to 6 public inspection. Nothing in this section may be construed to repeal or 28 otherwise modify 7 any confidentiality requirements found in state law. 29 8 Section 6. That a NEW SECTION be added to chapter 61-5: 30 26.882.29 4 1286 Underscores indicate new language. Overstrikes indicate deleted language. 9 The Governor's Office of Economic Development shall promulgate rules, pursuant 1 10 to chapter 1-26, establishing: 2 11 (1) The process by which an industry is determined to be a key industry for the 3 12 purposes of subdivision 61-5-29.1(1); 4 13 (2) The process by which an individual or entity applies for an award from the 5 14 employer's investment in South Dakota's future fund; 6 15 (3) The methods for assessing or estimating the economic impact, including the 7 16 potential investment-to-impact ratio, that a research project or economic 8 17 development opportunity will have on the state; 9 18 (4) The contractual provisions that must be included in the agreement signed by the 10 19 applicant and the Governor's Office of Economic Development, including: 11 20 (a) Performance expectations; 12 21 (b) A schedule for providing performance progress reports to the Governor's 13 22 Office of Economic Development; 14 23 (c) A conflict-of-interest policy; and 15 24 (d) Other contractual provisions that provide for the general terms and 16 25 conditions of the agreement; 17 26 (5) The criteria for determining how a research project or economic development 18 27 opportunity is recommended to the Governor for an award from the fund; 19 28 (6) Any requirements that the individual or entity applying for an award must meet in 20 29 order to receive the award; 21 30 (7) If the award from the fund exceeds one million dollars, the documentation required 22 31 to demonstrate proof of payment for all expenditures for which the applicant seeks 23 32 reimbursement; 24 33 (8) The process by which an award is disbursed; and 25 34 26.882.30 5 1286 Underscores indicate new language. Overstrikes indicate deleted language. (9) The process by which any moneys awarded from the fund are returned to the fund 26 1 in the event of a change in the project's circumstances, the applicant's failure to 27 2 meet the established performance expectations, or the projects failure or relocation 28 3 outside of the state. 29 4