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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 1
certificates, lease-purchase contracts, or installment purchase contracts. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That § 13-16-6.2 be AMENDED: 4
13-16-6.2. The school board of any school district may issue capital outlay 5
certificates to acquire or construct real property, plant, or equipment. All capital outlay 6
certificates shall must be authorized, issued, and sold in accordance with the provisions 7
of chapter 6-8B. However, no election other than as provided in §§ 13-16-6.3 and 13-16-8
6.4 may be held, and the , except as otherwise provided in § 13-16-6.4. The certificates 9
may not have a maturity date in excess of twenty years from the date of issuance. 10
Section 2. That § 13-16-6.3 be AMENDED: 11
13-16-6.3. Any A proposed installment purchase contract , lease-purchase, or 12
issue issuance of capital outlay certificates authorized pursuant to § 13-16-6 or 13-16-6.2 13
which will obligate the school district for future payments on the principal, the total of 14
which will exceed one and one-half percent of the taxable valuation of taxable property 15
within the district, may not be entered into, or certificates issued, unless prior thereto the 16
school board conducts a public hearing thereon after having given notice by publication at 17
least twice in its official newspaper at least ten days before the hearing. Upon Except as 18
otherwise provided in this section, the hearing the board may approve the action or may 19
refer the matter to the voters of the district. 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, which obligate the district to 22
future payments, or with a maturity date, in excess of ten years, may not be issued or 23
entered into unless the board refers the matter to the voters of the district. 24
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 pursuant to § 13-16-6.3 is 3
subject to a referendum if five percent of the registered voters, based upon the total 4
number of registered voters at the last preceding general election, petition, within twenty 5
days thereafter, to have the question of approval to enter into the agreement or issue 6
capital outlay certificates placed upon the ballot at a. The board of a school district may 7
issue capital outlay certificates pursuant to §§ 13-16-6.2 and 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 of the district. 10
A special election called for that purpose and the purposes provided in this section 11
must be held on: 12
(1) The first Tuesday after the first Monday in March; 13
(2) The first Tuesday after the first Monday in June; or 14
(3) The first Tuesday after the first Monday in November. 15
If the bond election is held on a date listed in subdivision (2) or (3) in an even -16
numbered year, the election must be held in conjunction with the regular primary or 17
general election, respectively. When the election is held in conjunction with the primary 18
or general election, the expenses and governmental responsibilities of a combined election 19
must be shared in a manner agreed upon by the board of the school district and the boards 20
of county commissioners involved. 21
The business manager shall give notice that the question is to be on the ballot at 22
the regular or special election, as provided by law for school elections, and prepare official 23
ballots therefor according to the provisions of this title. Approval of the question to enter 24
into an agreement or issue capital outlay certificates requires an affirmative vote of at 25
least sixty percent of those voting on the question. 26
If the question submitted to the voters at an election is not approved by the voters, 27
the school board may, by resolution, place the question on the ballot at the next available 28
election provided by this section. 29