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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 s ign 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 t o
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.
I certify that the attached Act originated in
the:
House as Bill No. 1286
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. 1286
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