The amendment expands the bill to cover not just capital outlay certificates but also lease-purchase and installment purchase contracts, and it creates a mandatory voter approval requirement for contracts exceeding ten years in maturity rather than making voter referral discretionary—significantly strengthening voter oversight of long-term school district financial obligations. Additionally, it raises the automatic hearing threshold from fifty thousand dollars to one and one-half percent of taxable property valuation, which narrows when hearings are automatically triggered.
26.201.29 26.201.30 101st Legislative Session 229 2026 South Dakota Legislature Senate Bill 229 SENATE EDUCATION ENGROSSED Introduced by: Senator Nelson Underscores indicate new language. Overstrikes indicate deleted language. An Act to require an election to approve the issuance of certain capital outlay certificates. 1 certificates, lease-purchase contracts, or installment purchase contracts. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 3 Section 1. That § 13-16-6.2 be AMENDED: 3 4 13-16-6.2. The school board of any school district may issue capital outlay 4 5 certificates to acquire or construct real property, plant, or equipment. All capital outlay 5 6 certificates shall must be authorized, issued, and sold in accordance with the provisions 6 7 of chapter 6-8B. However, no election other than as provided in §§ 13-16-6.3 and 13-16-7 13-16-8 6.4 may be held, and the, except as otherwise provided in § 13-16-6.4. The certificates 8 9 may not have a maturity date in excess of twenty years from the date of issuance. 9 10 Section 2. That § 13-16-6.3 be AMENDED: 10 11 13-16-6.3. Any A proposed installment purchase contract, or lease-purchase, or 11 12 issue issuance of capital outlay certificates authorized pursuant to § 13-16-6 or 13-16-6.2 13 which 12 will obligate the school district for future payments on the principal, the total of 14 which will 13 exceed one and one-half percent of the taxable valuation of taxable property 15 within the 14 district fifty thousand dollars, district, may not be entered into, or certificates issued, unless prior 15 thereto the 16 school board conducts a public hearing thereon after having given notice by 16 publication at 17 least twice in its official newspaper at least ten days before the hearing. 17 Upon Except as 18 otherwise provided in this section, the approval of the board during the hearing, hearing the board may approve the action or 18 may shall 19 refer the matter to the voters of the district. 19 Capital 20 A proposed installment purchase contract, lease-purchase, or issuance of outlay 21 certificates authorized pursuant to § 13-16-6 or 13-16-6.2 13-16-6.2, which obligate the district to 22 future payments, or with a maturity date, in excess of ten years, may not 20 be issued or 23 entered into unless prior thereto the school board conducts a public hearing after having 21 given notice by publication at least twice in its official newspaper at least ten days before 22 the hearing. Upon the approval of the board during refers the hearing, the board shall refer the 23 matter to the voters of the district. 24 26.201.29 26.201.30 2 229 Underscores indicate new language. Overstrikes indicate deleted language. Section 3. That § 13-16-6.4 be AMENDED: 1 13-16-6.4. Approval Except as otherwise provided in this section, approval to 2 enter into an agreement or issue capital outlay certificates 2 pursuant to § 13-16-6.3 is 3 subject to a referendum if five percent of the registered voters, 3 based upon the total 4 number of registered voters at the last preceding general election, 4 petition, within twenty 5 days thereafter, to have the question of approval to enter into the 5 agreement or issue 6 capital outlay certificates placed upon the ballot at a. The board of a 6 school district may 7 issue capital outlay certificates pursuant to §§ 13-16-6.2 and 13-16-7 6.3 13-16-6.3, with a maturity 8 date in excess of ten years from the date of issuance, only if the question of issuing the 9 capital outlay certificates is approved by the voters 8 of the district. 10 A special election called for that purpose and the purposes provided in this 9 section 11 must be held on: 10 12 (1) The first Tuesday after the first Monday in March; 11 13 (2) The first Tuesday after the first Monday in June; or 12 14 (3) The first Tuesday after the first Monday in November. 13 15 If the bond election is held on a date listed in subdivision (2) or (3) in an even-14 even-16 numbered year, the election must be held in conjunction with the regular primary or 15 17 general election, respectively. When the election is held in conjunction with the primary 16 18 or general election, the expenses and governmental responsibilities of a combined election 17 19 must be shared in a manner agreed upon by the board of the school district and the boards 18 20 of county commissioners involved. 19 21 The business manager shall give notice that the question is to be on the ballot at 20 22 the regular or special election, as provided by law for school elections, and prepare official 21 23 ballots therefor according to the provisions of this title. Approval of the question to enter 22 24 into an agreement or issue capital outlay certificates requires an affirmative vote of at 23 25 least sixty percent of those voting on the question. 24 26 If the question submitted to the voters at an election is not approved by the voters, 25 27 the school board may, by resolution, place the question on the ballot at the next available 26 28 election provided by this section. 27 29