88
th Legislative Session _ 2013
Committee: House State Affairs
Monday, March 04, 2013
P - Present
E - Excused
A - Absent
Roll Call
P Conzet
P Gibson
P Gosch
P Hansen
P Hunhoff (Bernie)
P Killer
P Munsterman
P Novstrup (David)
P Parsley
P Verchio
E Wink
P Cronin, Vice-Chair
P Lust, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Representative Lust.
MOTION: TO APPROVE THE MINUTES OF WEDNESDAY, MARCH 27, 2013
Moved by: Hansen
Second by: Gibson
Action: Prevailed by voice vote.
SB 136: revise the state aid to education formula and to make an appropriation.
Presented by: Representative Justin Cronin
MOTION: DO PASS SB 136
Moved by: Gibson
Second by: Conzet
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Conzet, Gibson, Gosch, Hansen, Hunhoff (Bernie), Killer, Munsterman, Novstrup
(David), Parsley, Verchio, Cronin, Lust
Excused: Wink
SB 207: make certain legislative findings concerning federal infringement on Second
Amendment rights.
Presented by: Representative Mark Mickelson
Senator Larry Rhoden
Proponents: Marty Jackley, Office of the Attorney General
MOTION: AMEND SB 207
207ra
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. The Legislature finds, as a matter of law, that the personal and states' rights
enumerated in the Bill of Rights of the Constitution of the United States of America should be
interpreted strictly so that our citizens and the states may be secure in the preservation of their rights
under the Bill of Rights against any unconstitutional intrusion by the federal government. This is
especially the case with respect to the Second Amendment where the Founding Fathers freely and
willingly irrevocably rescinded all legislative and executive authority to regulate gun ownership and
usage, as well as the related issue of the maintenance and armament of state militias, and reserved
such authority to individual citizens and the states respectively. Therefore we can neither identify
any means nor rationalize any legal theory that the Second Amendment of the Bill of Rights does
not effectively foreclose any and all federal initiatives directed at the restriction of gun ownership
and the right of self defense. We look with disapproval and skepticism at all federal legislation and
executive orders that attempt to evade or elude the sacred, hallowed, and clear intent and purpose
of the Second Amendment which specifically and definitively prohibits all infringement of this
fundamental right by either overt or covert federal acts.
Section 2. We hereby direct the Office of the Attorney General to be vigilant and proactive in
protecting, by litigation if necessary, the rights of South Dakota and its citizens against all dilution
and diminution of Second Amendment rights from whatever source and by whatever means."
Moved by: Gosch
Second by: Hansen
Action: Prevailed by voice vote.
MOTION: DO PASS SB 207 AS AMENDED
Moved by: Verchio
Second by: Gosch
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DEFER SB 207 TO THE 41
ST LEGISLATIVE DAY
Moved by: Gibson
Second by: Killer
Action: Prevailed by roll call vote. (8-4-1-0)
Voting Yes: Gibson, Hunhoff (Bernie), Killer, Munsterman, Novstrup (David), Parsley, Cronin,
Lust
Voting No: Conzet, Gosch, Hansen, Verchio
Excused: Wink
SB 235: enhance economic development opportunities for the state.
Presented by: Senator Corey Brown
Proponents: Bob Sahr, East River Electric
David Owen, SD Chamber of Commerce and Industry
Dick Tieszen, Technical Institutes
Bob O'Connell, Sioux Falls Area Chamber of Commerce
Wade Pogany, Associated School Boards of SD
Kitty Kinsman, Rapid City Area Chamber of Commerce (Handout: #1)
Robert Monson, School Administrators of South Dakota
Darla Pollman Rogers, SD Rural Electric Association
Sandra Waltman, SD Education Association
Mitch Richter, SD United Schools Association
Steve Willard, SD Electric Utilities
Deb Mortenson, Associated General Contractors of SD
Brett Koenecke, Iberdrola Renewables, Inc
Bill Van Camp, Nextera Energy Resources
Shawn Lyons, SD Retailers Association
Matt Krogman, Brookings Economic Development, Corporation
Bob Riter, SD Manufactured Housing Association
Dick Howard, SD Association of Towns and Townships
Julie Johnson, Absolutely Aberdeen
MOTION: AMEND SB 235
235fa
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. There is hereby created the building South Dakota fund for the purpose of
building and reinvesting in South Dakota's economy and to create high quality jobs. Any money in
the building South Dakota fund is continuously appropriated to GOED. The board may accept and
expend for the purposes of this Act any funds obtained from appropriations or any other source.
Interest earned on money in the fund shall be deposited into the fund.
If the Board of Economic Development approves a project to receive a reinvestment payment
pursuant to the provisions of sections 23 to 37, inclusive, of this Act, the Department of Revenue
shall deposit all of the contractors' excise tax imposed and paid pursuant to the provisions of chapter
10-46A or 10-46B on the project costs into the building South Dakota fund.
The state treasurer shall transfer twenty-five percent of the unclaimed property deposited in the
general fund pursuant to chapter 43-41B in state fiscal year 2015 into the building South Dakota
fund. The state treasurer shall transfer fifty percent of the unclaimed property deposited in the
general fund pursuant to chapter 43-41B in state fiscal year 2016 and each year thereafter into the
building South Dakota fund.
Section 2. The commissioner of the Bureau of Finance and Management shall authorize and
disburse money from the fund for the following purposes:
(1) Twenty-five percent of the fund shall be transferred to the local infrastructure
improvement grant fund created in section 4 of this Act;
(2) Fifteen percent of the fund shall be transferred to the economic development partnership
fund created in section 5 of this Act;
(3) Thirty percent of the fund shall be transferred to the workforce education fund created in
section 8 of this Act;
(4) Twenty-five percent of the fund shall be transferred to the South Dakota housing
opportunity fund created in section 11 of this Act;
(5) Five percent of the fund shall be transferred to the revolving economic development and
initiative fund created in § 1-16G-3 for the purpose of making grants or loans to projects
that have a total project cost of less than twenty million dollars.
Section 3. The Governor's Office of Economic Development shall report annually to the
Government Operations and Audit Committee about the operations and results of the building South
Dakota fund.
Section 4. There is hereby created in the state treasury the local infrastructure improvement grant
fund. The Board of Economic Development may award grants to any political subdivision of this
state or local development corporation from the fund to construct or reconstruct infrastructure for
the purpose of serving an economic development project. The board shall consult other state
agencies to evaluate the feasibility and merits of the proposed infrastructure improvements. No
county is eligible for a grant for infrastructure improvements, unless the county imposes the
maximum wheel tax pursuant to chapter 32-5A or supplements road funds with general funds or
other funds in an amount equal to or greater than what may be generated from a wheel tax increase.
Interest earned on money in the fund shall be deposited into the fund. Any money in the local
infrastructure improvement grant fund is continuously appropriated. Any money deposited into and
distributed from the fund shall be set forth in an informational budget as described in § 4-7-7.2.
Section 5. The economic development partnership fund is hereby established within the
Governor's Office of Economic Development. Any nonprofit development corporation, municipality,
county, or other political subdivision of the state may apply to GOED for funds on a matching basis
as provided in sections 6 to 7, inclusive, of this Act. Interest earned on money in the fund shall be
deposited into the fund. Any money in the economic development partnership fund is continuously
appropriated. Any money deposited into and distributed from the fund shall be set forth in an
informational budget as described in § 4-7-7.2.
Section 6. GOED may award funds from the economic development partnership fund for new
staff, or elevate existing part-time staff and equipment needs for the purpose of developing or
expanding local, community, and economic development programs. GOED may also award funds
from the economic development partnership fund to commence or replenish a local revolving loan
fund for the purpose of developing or expanding housing, community, and economic development
programs. Areas of emphasis for funding include creating high quality employment opportunities,
repopulation, stronger economies, housing development, business growth, support of
entrepreneurship, and job creation, expansion, and retention.
Section 7. Any funds awarded under the economic development partnership fund shall be
provided on a matching basis. The funds awarded to a recipient for staffing may be distributed over
a four year period with forty percent being distributed in the first year, thirty percent in the second
year, twenty percent in the third year, and ten percent in the fourth year. Over the four year period,
the recipient shall match the total funds received from the economic development partnership fund.
Section 8. There is hereby created in the state treasury the workforce education fund. The Board
of Education may award grants to any department, agency, or political subdivision of this state,
nonprofit, or local development corporation from the fund for the following purposes:
(1) Support the state aid to general education formula by including funding for students with
limited English proficiency;
(2) Provide additional resources for secondary and postsecondary career and technical
education; and
(3) Support for education equipment for workforce training programs at the postsecondary
technical institutes or satellite postsecondary education programs.
Interest earned on money in the fund shall be deposited into the fund. Any money in the
workforce education fund is continuously appropriated. Any money deposited into and distributed
from the fund shall be set forth in an informational budget as described in § 4-7-7.2.
Section 9. The workforce education fund created pursuant to section 8 of this Act shall be used
to annually fund the state's share of the limited English proficiency adjustment as calculated by § 13-13-10.1 and 13-13-73.
If the balance of the workforce education fund exceeds two million dollars as of July first of each
year, the amount of money in excess of one million dollars shall be allocated to each school district
for the purposes of advancing the use of technology in the classrooms, purchasing equipment and
services to assist in career and technical education programs, and funding other nonrecurring
educational expenses that help prepare students for the workforce. The secretary of the Department
of Education shall distribute to each school district an amount equal to the money available for such
distribution times the ratio of each school district's fall enrollment to the total state fall enrollment.
The distribution shall be made as a one-time payment to each school district.
Section 10. GOED shall promulgate rules pursuant to chapter 1-26 to provide for implementation
and administration of the local infrastructure improvement grant fund, economic development
partnership fund, and the workforce education fund. The rules shall include:
(1) Application requirements, procedures, and forms;
(2) Award procedures;
(3) Eligible uses of award funds;
(4) Eligibility requirements for applicants;
(5) Responsibilities of applicants and award recipients;
(6) Procedures for rescinding and repayment of awards if the applicant's or recipient's
responsibilities are not met;
(7) Reporting requirements; and
(8) Other items necessary for the administration of the program.
Section 11. There is hereby created the South Dakota housing opportunity fund to be
administered by the South Dakota Housing Authority for the purpose of preserving and expanding
sustainable, affordable, and safe housing that is targeted to low and extremely low income families
and individuals in South Dakota. The authority may accept and expend for the purposes sections 11
to 20, inclusive, of this Act any funds obtained from appropriations or any other source. Any money
deposited into and distributed from the fund shall be set forth in an informational budget as described
in § 4-7-7.2. Interest earned on money in the fund shall be deposited into the fund.
Section 12. Terms used in this sections 11 to 20, inclusive, of this Act:
(1) "Administering agency," the South Dakota Housing Development Authority shall act as
the administrative agency for the South Dakota housing opportunity fund;
(2) "Affordable housing," housing is affordable if the total housing costs, which includes rent,
utilities, mortgage, and related expenses, represents no more than thirty percent of gross
household income;
(3) "Commissioner," a member appointed to the oversight commission;
(4) "Fund," the South Dakota housing opportunity fund;
(5) "Low Income," the three levels of low income are:
(a) Low income means any household with an income at or below eighty percent of
area median income (AMI) based on United States Department of Housing and
Urban Development (HUD) criteria;
(b) Very low income means any household with income at or below fifty percent of
AMI based on HUD criteria; and
© Extremely low income means any household with income at or below thirty percent
of AMI based on HUD criteria;
(6) "Moderate Income," any household with an income at or below one hundred and fifteen
percent of AMI based on HUD criteria;
(7) "Oversight commission," the commission that governs the South Dakota housing
opportunity fund.
Section 13. The oversight commission shall consist of the following thirteen members:
(1) The president pro tempore of the Senate shall appoint three members at large;
(2) The speaker of the House of Representatives shall appoint three members at large;
(3) The Governor shall appoint six members as follows:
(a) One member shall represent a public housing authority;
(b) One member shall represent an Indian housing authority;
© One member shall represent the nonprofit housing industry;
(d) One member shall represent a special needs advocate; and
(e) Two members at large; and
(4) The executive director of the South Dakota Housing Development Authority shall serve
as the chair of the oversight commission.
The commissioners shall serve three-year staggered terms, with no more than four commissioners
appointed to any one term, with each term beginning July first and ending on June thirtieth. No
commissioner appointed pursuant to this section may serve more than three consecutive full terms.
Each commissioner shall hold office for the term of the appointment and until a successor has been
appointed. If there is a vacancy on the oversight commission, the vacancy shall be filled in the same
manner as the original appointment.
The oversight commission shall review and approve a monitoring and reporting system which
shall be established by the administering agency. On an annual basis, the oversight commission shall
assess and prioritize eligible activities for funding. Working with the administrative agency, the
oversight commission shall establish an award system and review criteria for the evaluation and
review of each proposal. The oversight commission shall review and then approve or disapprove the
funding recommendations made by the administering agency.
Section 14. The administrative agency shall:
(1) Develop program guidelines;
(2) Market the fund to eligible applicants;
(3) Receive, review, and evaluate proposals;
(4) Submit funding proposal recommendations to the oversight commission;
(5) Administer annual monitoring and reporting on the fund;
(6) Create operating rules and guidelines for the oversight commission; and
(7) Perform all other activities necessary to support the administration of the fund.
Section 15. Any for-profit entity, nonprofit entity, Native American tribe, housing authority, a
political subdivision of this state or its agencies, or any agency of this state is eligible to apply for
funding from the fund. No individual may apply for funding directly from the fund.
Section 16. The South Dakota housing opportunity fund may be used to provide a grant, loan,
loan guarantee, loan subsidy and other financial assistance to an eligible applicant. Money from the
fund may be used to build, buy, and or rehabilitate affordable housing for rent or home ownership,
including single family and multifamily housing. The eligible fund activities include affordable
housing projects that consist of new construction of rental or home ownership housing, substantial
or moderate rehabilitation of rental or home ownership housing, housing preservation, including
home repair grants and grants to make homes more accessible to individuals with disabilities,
homelessness prevention activities, as well as a community land trust. No more than ten percent of
the funds awarded may be used for the administrative costs of any entity that has received funding
from the fund.
Section 17. Each year, money from South Dakota housing opportunity fund shall be set aside as
follows:
(1) Thirty percent shall be designated for municipalities that have a population of fifty
thousand or more; and
(2) Seventy percent shall be designated for the other areas of the state.
If the approved applications for any area are less than the amount set aside, the remaining amount
may be made available for qualified applications from the other areas. The geographic distribution
guideline takes precedence over income targeting guideline during the evaluation of the applications.
Section 18. The South Dakota housing opportunity fund shall be targeted to serve low to
moderate income households with a maximum income at or below one hundred fifteen percent of
the area median income based on United States Department of Housing and Urban Development
(HUD) criteria. A priority shall be given to any projects that serve households with incomes up to
eighty percent of area median income. Sixty-five percent of the money in the fund shall be set aside
for projects serving households up to eighty percent of area median income, and priority shall be
given to projects serving households up to thirty percent of area median income. If the total amount
of the applications approved are equal to or less than the amount set aside for an income category,
the unused amount shall be made available for qualified applications serving other income
categories.
Section 19. Awards from the fund shall be made through a competitive process during the initial
application cycle each year. Each application shall be evaluated and scored based on criteria created
by the administering agency and the oversight commission. Each applicant that is awarded money
from the fund shall be encouraged to leverage the money for any project or program with other
public and private dollars. If there are funds available after the initial application cycle, additional
application rounds may be established. Any program income or loan payments shall be deposited
into the fund.
Section 20. The oversight commission shall submit to the Governor and the Legislature an annual
report which includes the activity and use of funds for the South Dakota housing opportunity fund.
Section 21. That § 1-16G-1 be amended to read as follows:
1-16G-1. There is created a Board of Economic Development and the Governor may appoint up
to thirteen members to consult with and advise the Governor and the commissioner of the Governor's
Office of Economic Development in carrying out the functions of the office. The members shall be
confirmed by the senate. The members of the board shall be appointed by the Governor for four-year
terms of office so arranged that no more than four members' terms expire in any given year. Not all
members may be from the same political party. The Governor shall designate the terms at the time
of appointment. Any member appointed to fill a vacancy arising from other than the natural
expiration of a term shall serve only the unexpired portion of the term.
Section 22. In addition to the members of the Board of Economic Development appointed
pursuant to § 1-16G-1, four ex officio nonvoting members shall be appointed to the board by the
Legislature as follows:
(1) The majority leader of the Senate shall appoint one member of the Senate;
(2) The minority leader of the Senate shall appoint one member of the Senate;
(3) The majority leader of the House of Representatives shall appoint one member of the
House of Representatives; and
(4) The minority leader of the House of Representatives shall appoint one member of the
House of Representatives.
Section 23. Terms used in sections 23 to 37, inclusive, of this Act mean:
(1) "Board," the Board of Economic Development;
(2) "Commissioner," the commissioner of the Governor's Office of Economic Development;
(3) "Completed the project" or "completion of the project," the first date when the project is
operational;
(4) "Construction date," the first date earth is excavated or a contractor has initiated work for
the purpose of constructing or expanding a project or the first date a which the process
begins for the purpose of placing or replacing equipment;
(5) "Data center," any facility established for the purpose of processing, storage, retrieval, or
communication of data;
(6) "Department," the Department of Revenue;
(7) "GOED," the Governors Office of Economic Development;
(8) "New or expanded facility," a new building or structure, or the expansion of an existing
building or structure;
(9) "Person," any individual, firm, copartnership, joint venture, association, cooperative,
nonprofit development corporation, limited liability company, limited liability
partnership, corporation, estate, trust, business trust, receiver, or any group or combination
acting as a unit;
(10) "Project," a new building or structure or the expansion of an existing building or structure,
the construction of which is subject to the contractor's excise tax imposed by chapters
10-46A or 10-46B. A project may include the installment or replacement of equipment
if the equipment costs exceed two million dollars. A project includes laboratory and
testing facilities, manufacturing facilities, data centers, power generation facilities, power
transmission facilities, agricultural processing facilities, and wind energy facilities. A
project does not include any building or structure:
(a) Used predominantly for the sale of products at retail, other than the sale of
electricity at retail, to individual consumers;
(b) Used predominantly for residential housing or transient lodging;
© Used predominantly to provide health care services;
(d) Used predominantly for the transportation or transmission of natural gas, oil, or
crude oil by means of a pipeline;
(e) Constructed for raising or feeding of livestock; or
(f) That is not subject to ad valorem real property taxation or equivalent taxes
measured by gross receipts;
(11) "Project cost," the amount paid by the project owner in money, credits, property, or other
money's worth for a project;
(12) "Wind energy facility," the facility includes those components subject to the sales and
uses tax or the contractors excise tax, including the cost of the blades, wind turbine
generators, towers, bases, foundations, power collection systems, electric interconnection
systems, substations, and amounts paid to contractors.
Section 24. If the projects costs for a new or expanded facility exceeds twenty million dollars or
the projects costs for equipment replacement exceeds two million dollars, a person may apply for
a reinvestment payment pursuant to sections 23 to 37, inclusive, of this Act. The person shall:
(1) Timely file an application as required by section 25 of this Act;
(2) Receive a permit from GOED pursuant to section 27 of this Act;
(3) Timely file the affidavit of reinvestment payment as required by section 28 of this Act;
and
(4) Comply with the provisions of sections 23 to 37, inclusive, of this Act to qualify for the
reinvestment payment.
A project with a construction date on or after April 1, 2013, may receive a reinvestment payment
as provided by sections 23 to 37, inclusive, of this Act.
Section 25. Before any person receives any reinvestment payment as provided in sections 23 to
37, inclusive, of this Act, the person shall file an application with GOED. The application may be
filed no sooner than ninety days before the construction date, or no later than ninety days after the
construction date. No person may receive any reinvestment payment as provided by sections 23 to
37, inclusive, of this Act if the application is not timely filed with GOED.
The application shall include the following information:
(1) The project owner's name and contact information;
(2) The general description of the project;
(3) The construction date of the project;
(4) The projected date for completion of the project;
(5) The estimated project costs;
(6) The location of the project;
(7) The legal description of the project location;
(8) A list of the contractors and subcontractors that will perform work on the project; and
(9) Any other information that GOED may require.
The application shall be on a form prescribed by the commissioner. The application shall be
signed by the project owner under penalty of perjury, and signed under oath before a notary public.
No application may include more than one project.
Section 26. The Board of Economic Development shall review the application and make a
determination of whether the project shall be approved or disapproved. The board may approve a
reinvestment payment that is equal to or less than South Dakota sales and use tax paid by the project
owner on the project costs for the project.
The board shall consider the following factors when making that determination:
(1) Has the county or municipality adopted a formula to reduce property taxation for the
project for five years under the discretionary formula pursuant to § 10-6-35.2;
(2) Has the county or municipality approved a tax incremental district pursuant to chapter
11-9 for the area where the project will be located;
(3) Has the municipality approved a municipal sales tax refund pursuant § 10-52-10;
(4) Likelihood that the project would have occurred without the reinvestment payment
provided by sections 23 to 37, inclusive, of this Act;
(5) Economic activity that may occur in the community, area, and state; and
(6) Criteria established by rules promulgated pursuant to section 36 of this Act.
Section 27. Upon approval of the application by the Board of Economic Development, GOED
shall issue a permit entitling the person to submit an affidavit for reinvestment payment as provided
by section 28 of this Act. The permit and reinvestment payment is assignable and transferable and
may be used as collateral or security pursuant to chapter 57A-9. If the initial permit holder entity
reorganizes into a new entity, the new entity shall file with GOED an amended application within
sixty days of the reorganization. If either the permit or reinvestment payment, or both, is assigned
or transferred to another entity, such entity shall file with GOED an amended application within sixty
days.
Section 28. Any person that has timely filed the application and is holding a permit issued by
GOED, and has completed the project, shall file an affidavit for reinvestment payment with GOED.
The affidavit for reinvestment payment shall contain the following information:
(1) The project owner's name and contact information;
(2) The general description of the project;
(3) The date of completion of the project;
(4) The final project costs;
(5) The amount of South Dakota sales tax, use tax, and contractors excise tax paid for the
construction of the project;
(6) The location of the project;
(7) The legal description of the project location;
(8) A list of the contractors and subcontractors that performed work on the project; and
(9) Any other information that GOED may require.
The affidavit for reinvestment payment shall be on a form prescribed by the commissioner. The
affidavit for reinvestment payment shall be signed by the project owner and signed under oath before
a notary public. No affidavit for reinvestment payment may include more than one project.
Section 29. The affidavit for reinvestment payment as required by section 28 of this Act shall be
filed no later than six months after the completion of the project. If the affidavit for reinvestment
payment is not timely filed, the person is ineligible for any reinvestment payment provided by
sections 23 to 37, inclusive, of this Act. If the affidavit for reinvestment payment contains any
intentionally false or fraudulent information, the person is ineligible for any reinvestment payment
provided by sections 23 to 37, inclusive, of this Act.
No project costs that occur after three years from the construction date are eligible to be included
in the final project cost determination for any reinvestment payment provided by sections 23 to 37,
inclusive, of this Act.
Section 30. After the timely receipt of a completed affidavit for reinvestment payment, within
sixty days GOED shall make payment from the reinvestment fund to the project owner based upon
the amount and terms approved by the board as a reinvestment payment. GOED shall tender the
reinvestment payment by electronic funds transfer.
Section 31. There is hereby created the reinvestment payment fund for the sole purpose of
making reinvestment payments pursuant to the provisions of sections 23 to 37, inclusive, of this Act.
If the Board of Economic Development approves a reinvestment payment pursuant to the
provisions of sections 23 to 37, inclusive, of this Act, the Department or Revenue shall deposit a
portion or all of the sales and use taxes paid by the project owner up to a maximum amount of the
reinvestment payment approved by the board.
The funds in the reinvestment project fund are continuously appropriated to GOED to make
reinvestment payments pursuant to sections 23 to 37, inclusive, of this Act. If any money deposited
in the fund and set aside for a specific reinvestment payment is in excess of the final reinvestment
payment or the specific project becomes ineligible for the reinvestment payment, such money shall
be deposited into the general fund. Interest earned on money in the fund shall be deposited into the
general fund.
Section 32. Any person who files an intentionally false or fraudulent application pursuant to
section 25 of this Act is guilty of a Class 1 misdemeanor. Any person who files a false or fraudulent
affidavit for reinvestment payment pursuant to section 28 of this Act is guilty of a Class 1
misdemeanor.
Section 33. If the project is located on land that is included within the agreement area of a tax
collection agreement entered into by the state and an Indian tribe pursuant to chapter 10-12A, the
board may only approve a reinvestment payment that is equal to or less than the percentage of funds
that Department of Revenue retains pursuant to the terms of the tax collection agreement.
Section 34. The name of any person that receives a reinvestment payment as provided by sections
23 to 37, inclusive, of this Act and the amount of the reinvestment payment is public information
and shall be available and open to public inspection as provided in § 1-27-1. The following
information shall be made public on the GOED website as public information:
(1) An estimated number of the full-time jobs to be created by the project;
(2) An estimated average wage of the full-time jobs;
(3) A list of all the local and state economic tools, loans, or grants provided to the project;
(4) An estimate of the property taxes to be paid by the project; and
(5) A statement of why the project would not have occurred in South Dakota without the
reinvestment payment.
Section 35. Any person aggrieved by the denial in whole or in part of a reinvestment payment
claimed under the provisions of sections 23 to 37, inclusive, of this Act, may within thirty days after
service of the notice of such denial by the commissioner, demand and is entitled to a hearing, upon
notice, before the commissioner. The hearing shall be conducted pursuant to chapter 1-26.
Section 36. The board may promulgate rules, pursuant to chapter 1-26, concerning the procedures
and forms for applying for and receiving the reinvestment payment, the requirements necessary to
qualify for the reinvestment payment, and the criteria to evaluate projects submitting applications.
Section 37. No person who works for a project may be employed for a compensation dependent
in any manner upon the approval of any government grants, loans, or reinvestment payments that the
person obtains for the project.
Section 38. That § 13-13-10.1 be amended to read as follows:
13-13-10.1. Terms used in this chapter mean:
(1) "Average daily membership," the average number of resident and nonresident
kindergarten through twelfth grade pupils enrolled in all schools operated by the school
district during the previous regular school year, minus average number of pupils for
whom the district receives tuition, except pupils described in subdivision (1A) and pupils
for whom tuition is being paid pursuant to § 13-28-42.1 and plus the average number of
pupils for whom the district pays tuition;
(1A) Nonresident students who are in the care and custody of the Department of Social
Services, the Unified Judicial System, the Department of Corrections, or other state
agencies and are attending a public school may be included in the average daily
membership of the receiving district when enrolled in the receiving district. When
counting a student who meets these criteria in its general enrollment average daily
membership, the receiving district may begin the enrollment on the first day of
attendance. The district of residence prior to the custodial transfer may not include
students who meet these criteria in its general enrollment average daily membership after
the student ceases to attend school in the resident district;
(2) "Adjusted average daily membership," calculated as follows:
(a) For districts with an average daily membership of two hundred or less, multiply 1.2
times the average daily membership;
(b) For districts with an average daily membership of less than six hundred, but greater
than two hundred, raise the average daily membership to the 0.8293 power and
multiply the result times 2.98;
© For districts with an average daily membership of six hundred or more, multiply
1.0 times their average daily membership;
(2A) "Fall enrollment," the number of kindergarten through twelfth grade students enrolled in
all schools operated by the school district on the last Friday of September of the current
school year minus the number of students for whom the district receives tuition, except
nonresident students who are in the care and custody of a state agency and are attending
a public school and students for whom tuition is being paid pursuant to § 13-28-42.1, plus
the number of students for whom the district pays tuition. When computing state aid to
education for a school district under the foundation program pursuant to § 13-13-73, the
secretary of the Department of Education shall use either the school district's fall
enrollment or the average of the school district's fall enrollment from the previous two
years, whichever is higher;
(2B) Repealed by SL 2010, ch 84, § 1.
(2C) "Small school adjustment," calculated as follows:
(a) For districts with a fall enrollment of two hundred or less, multiply 0.2 times
$4,237.72;
(b) For districts with a fall enrollment of greater than two hundred, but less than six
hundred, multiply the fall enrollment times negative 0.0005; add 0.3 to that result;
and multiply the sum obtained times $4,237.72;
The determination of the small school adjustment for a school district may not include any
students residing in a residential treatment facility when the education program is
operated by the school district;
(2D) "Limited English proficiency (LEP) adjustment," is calculated as follows:
(a) Multiply 0.25 times the per student allocation; and
(b) Multiply the product obtained in subsection (a) times the number of kindergarten
through twelfth grade students who, in the prior school year, scored below level
four on the state-administered language proficiency assessment as required in the
state's consolidated state application pursuant to 20 USC 6311(b)(7) as of
January 1, 2013;
(3) "Index factor," is the annual percentage change in the consumer price index for urban
wage earners and clerical workers as computed by the Bureau of Labor Statistics of the
United States Department of Labor for the year before the year immediately preceding the
year of adjustment or three percent, whichever is less;
(4) "Per student allocation," for school fiscal year 2012 is $4,389.95. Each school fiscal year
thereafter, the per student allocation is the previous fiscal year's per student allocation
increased by the index factor;
(5) "Local need," is the sum of:
(a) The per student allocation multiplied by the fall enrollment; and
(b) The small school adjustment, if applicable, multiplied by the fall enrollment; and
© The limited English proficiency (LEP) adjustment, calculated pursuant to
subdivision (2D), if applicable;
(6) "Local effort," the amount of ad valorem taxes generated in a school fiscal year by
applying the levies established pursuant to § 10-12-42;
(7) "General fund balance percentage," is a school district's general fund equity divided by
the school district's total general fund expenditures for the previous school fiscal year, the
quotient expressed as a percent;
(8) "General fund reserves," the sum of a school district's nonspendable and restricted fund
balances of the general fund;
(9) "Nonspendable fund balance," that amount of the fund balance that is not in spendable
form;
(10) "Restricted fund balance," that amount of the fund balance that has constraints on how it
may be used that are externally imposed or are imposed by law.
Section 39. That § 13-13-73 be amended to read as follows:
13-13-73. The secretary of the Department of Education shall compute state aid to education for
each school district under the foundation program according to the following calculations:
(1) Determine each school district's fall enrollment;
(2) To arrive at the local need per district:
(a) Multiply the per student allocation by the fall enrollment;
(b) Multiply the small school adjustment, if applicable, by the fall enrollment; and
© Calculate the limited English proficiency (LEP) adjustment pursuant to subdivision
(2D), if applicable; and
(d) Add the product of subsection (a) to the product of subsection (b) and to the
calculation in subsection ©;
(3) State aid is (a) local need minus local effort, or (b) zero if the calculation in (a) is a
negative number;
(4) If the state aid appropriation for the general support of education is in excess of the
entitlement provided for in this section and the entitlement provided for in § 13-13-85,
the excess shall be used to fund any shortfall of the appropriation as provided for in § 13-37-36.3. The secretary shall report to the Governor by January seventh of each year, the
amount of state aid necessary to fully fund the general aid formula in the current year. If
a shortfall in the state aid appropriation for general education exists that cannot be
covered by § 13-37-45, the Governor shall inform the Legislature and provide a proposal
to eliminate the shortfall.
Section 40. Whereas, this Act is necessary for the support of the state government and its existing
public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and
effect from and after its passage and approval."
Moved by: Novstrup (David)
Second by: Cronin
Action: Prevailed by voice vote.
MOTION: DO PASS SB 235 AS AMENDED
Moved by: Munsterman
Second by: Novstrup (David)
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Conzet, Gibson, Gosch, Hansen, Hunhoff (Bernie), Killer, Munsterman, Novstrup
(David), Parsley, Verchio, Cronin, Lust
Excused: Wink
MOTION: AMEND TITLE OF SB 235
235fta
On page 1, line 1, of the printed bill, delete everything after "to" and insert "create the building
South Dakota fund, to deposit certain money into the building South Dakota fund, to create certain
programs and funds to enhance economic development, to make continuous appropriations to these
funds, to provide certain reinvestment payments to stimulate economic development and investment,
to revise the state aid to general education formula by including an adjustment for students with
limited English proficiency, and to declare an emergency.".
On page 1, delete line 2.
Moved by: Cronin
Second by: Gosch
Action: Prevailed by voice vote.
MOTION: ADJOURN
Moved by: Cronin
Second by: Munsterman
Action: Prevailed by voice vote.
Joshua Klumb
____________________________
Committee Secretary
David Lust, Chair
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