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26.706.10 101st Legislative Session 1130
2026 South Dakota Legislature
House Bill 1130
ENROLLED
AN ACT
ENTITLED An Act to amend permissible uses of a school district's capital outlay fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 13-16-6 be AMENDED:
13-16-6. The board of a school district may expend moneys from the capital outlay
fund for:
(1) Any expenditures that are required as the result of the acquisition or lease of or
additions to real property, plant, or equipment;
(2) Land, existing facilities, improvement of grounds, construction of facilities, or
additions to or remodeling of existing facilities;
(3) Any installment or lease-purchase payments made to purchase any real property,
plant, or equipment that has a contracted terminal date not exceeding twenty years
from the date of the installment contract or lease-purchase;
(4) The payment of:
(a) The principal of and interest on capital outlay certificates issued pursuant
to § 13-16-6.2;
(b) Any premium for a property insurance policy held by the school district;
(c) Up to fifteen percent of the amount of a transportation contract, if a school
district contracts for student transportation; or
(d) Up to fifteen percent of the amount required to reimburse mileage costs, if
a school district reimburses for mileage, pursuant to § 13-30-3, in lieu of
providing transportation;
(5) The purchase of:
(a) Warranties on capital assets, provided that the warranties do not include or
require supplies; or
(b) Textbooks;
(6) The purchase or renewal of instructional software; or
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(7) The purchase or lease of equipment.
Any purchase that does not exceed one thousand dollars may be paid out of the
general fund. The total accumulated unpaid principal balances of an installment contract
and lease -purchase, and the outstanding principal amounts of any capital outlay
certificates, may not exceed three percent of the taxable valuation. The school district
shall provide a sufficient levy each year under the provisions of § 13-16-7 to meet the
annual installment contract, lease -purchase, and capital outlay certificate payments,
including interest.
The board of a school district may transfer from its capital outlay fund to its general
fund an amount not to exceed forty -five percent of the total tax revenues deposited in
that fund during the current school fiscal year.
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An Act to amend permissible uses of a school district's capital outlay fund.
I certify that the attached Act originated in
the:
House as Bill No. 1130
Chief Clerk of the House
Speaker of the House
Attest:
Chief Clerk of the House
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1130
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2026 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2026
Governor
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________, 2026
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State