amend the process by which moneys are distributed from the employer's investment in South Dakota's future fund.

26.935.10 101st Legislative Session 185

2026 South Dakota Legislature
Senate Bill 185

Introduced by: Senator Larson

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 awards for research and or economic 8
development for the projects in this state. 9
The employer's investment in South Dakota's future fund is continuously 10
appropriated to the Governor's Office of Economic Development. 11
For purposes of this section, § 61-5-29.3, and sections 3 to 6, inclusive, of this Act, 12
"a research or economic development project" means: 13
(1) Research or equipment required as part of key industries or industries determined 14
to be viable through an economic base analysis for the state of South Dakota or a 15
specific community; 16
(2) Scholarships to postsecondary educational institutions operated by the Board of 17
Regents or the South Dakota Board of Technical Education, provided that the 18
scholarships are for programs that prepare a student for a career field available in 19
this state; 20
(3) Workforce development, apprentice programs, workforce trainings, workforce 21
recruitment, or career and technical education programs offered through a school 22
district, accredited nonpublic school, or institution operated by the Board of 23
Regents or the South Dakota Board of Technical Education; 24
(4) The development of infrastructure required to support economic development in 25
this state; 26
26.935.10 2 185
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Overstrikes indicate deleted language.
(5) Projects that support business retention or expansion; 1
(6) Recruiting out-of-state workers to move to and work in a career field available in 2
this state; and 3
(7) Supporting other organizations or entities that support economic development 4
projects that may receive moneys from the fund. 5
Section 2. That § 61-5-29.3 be AMENDED: 6
61-5-29.3. The Governor's Office of Economic Development shall report to either 7
the Joint Committee on Appropriations or the Interim Committee on Appropriations and 8
the Government Operations and Audit Committee on a biannual basis the following for 9
each award or grant made from the fund: 10
(1) The name of the recipient and the amount of the award or grant; 11
(2) The location of the recipient; 12
(3) The research or economic development purpose being funded; 13
(4) The measures being used to determine the economic impact of the award or grant; 14
and 15
(5) The number of jobs created or retained, if any. 16
Section 3. That a NEW SECTION be added to chapter 61-5: 17
If an applicant for an award from the employer's investment in South Dakota's 18
future fund is a business, the applicant must submit a business plan to the Governor's 19
Office of Economic Development before the Governor may award the applicant any 20
moneys from the fund. The applicant's business plan must include: 21
(1) The goods or services to be offered by the applicant; 22
(2) A description of the types of jobs required to offer the goods or services provided, 23
the educational requirement for each type of job, and the compensation package 24
to be offered to individuals employed to perform each type of job; 25
(3) The accounting practices employed by the business; and 26
(4) Other private or public funding received by the applicant. 27
Section 4. That a NEW SECTION be added to chapter 61-5: 28
Moneys from the employer's investment in South Dakota's future fund may be 29
awarded only to reimburse the actual cost of the research or economic development 30
project. 31
26.935.10 3 185
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Overstrikes indicate deleted language.
Before any moneys may be expended from the fund, the applicant shall: 1
(1) Sign an agreement with the Governor's Office of Economic Development; 2
(2) Provide an itemized invoice of all expenditures made by the applicant required in 3
furtherance of the project and documentation demonstrating proof of payment; 4
and 5
(3) Provide documentation demonstrating that the applicant has received a matching 6
commitment or an in -kind consideration for a benefitted city, county, local 7
industrial development corporation, as defined in § 9-27-37, chamber of 8
commerce, nonprofit corporation, or other development organization or capital 9
investment. 10
Any agreement executed pursuant to subdivision (1) of this section is open to 11
public inspection and must be posted on the state's website. 12
Section 5. That a NEW SECTION be added to chapter 61-5: 13
Before the Governor may approve the award of moneys from the employer's 14
investment in South Dakota's future fund, the Governor's Office of Economic Development 15
shall provide a detailed recommendation for the award to the Governor. Upon receiving 16
approval for the award from the Governor, the commissioner of the Governor's Office of 17
Economic Development and the applicant must sign the agreement required, pursuant to 18
section 4 of this Act. 19
Each recommendation for an award provided pursuant to this section is open to 20
public inspection and must be posted on the state's website. Any information in the 21
recommendation that constitutes trade secrets or other sensitive or privileged information 22
is not open to public inspection. 23
Section 6. That a NEW SECTION be added to chapter 61-5: 24
The Governor's Office of Economic Development shall promulgate rules, pursuant 25
to chapter 1-26, establishing: 26
(1) The process by which an individual or entity applies for an award from the 27
employer's investment in South Dakota's future fund; 28
(2) The methods for assessing or estimating the economic impact, including the 29
potential investment -to-impact ratio, that a research project or economic 30
development opportunity will have on the state; 31
(3) The contractual provisions that must be included in the agreement signed by the 32
applicant and the Governor's Office of Economic Development, including: 33
26.935.10 4 185
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Overstrikes indicate deleted language.
(a) Performance expectations; 1
(b) A schedule for providing performance progress reports to the Governor's 2
Office of Economic Development; 3
(c) A conflict-of-interest policy; and 4
(d) Other contractual provisions that provide for the general terms and 5
conditions of the agreement; 6
(4) The criteria for determining how a research project or economic development 7
opportunity is recommended to the Governor for an award from the fund; 8
(5) Any requirements that the individual or entity applying for an award must meet in 9
order to receive the award; 10
(6) The documentation required to demonstrate: 11
(a) Proof of payment for all expenditures for which the applicant seeks 12
reimbursement; and 13
(b) That the applicant has received a matching commitment or an in -kind 14
consideration, pursuant to section 4 of this Act; 15
(7) The process by which an award is disbursed; and 16
(8) The process by which any moneys awarded from the fund are returned to the fund 17
in the event of a change in the project's circumstances, the applicant's failure to 18
meet the established performance expectations, or the project's failure or 19
relocation outside of the state. 20