FOR AN ACT ENTITLED, An Act to  assign control of postsecondary technical education to the Board of Regents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That § 13-49-1 be amended to read as follows:
     13-49-1.   The Board of Regents shall control of the public postsecondary educational institutions of the state offering college credit which are sustained wholly or in part by the state shall be vested in a board of nine members, designated as the Board of Regents . The Governor shall appoint a Board of Regents comprised of nine members shall be appointed by the Governor, by and with the consent of the Senate.
     Section  2.  That § 13-1-12.1 be amended to read as follows:
     13-1-12.1.   The South Dakota Board of Education shall promulgate rules pursuant to chapter 1-26 to establish standards for the classification and accreditation of schools within this state, to establish standards for preparation of certified personnel, to set forth procedures for determining the eligibility of school districts to receive state foundation aid effective January 1, 1997 , to adopt policies and rules necessary to establish standards and procedures for secondary vocation-technical education and to establish curriculum requirements for both a

basic high school program and for a recommended high school program for all public and nonpublic schools within the state. Both programs shall include a rigorous high school curriculum, and the recommended high school program shall be more academically challenging in the areas of mathematics and science than the basic high school program. Both programs shall enhance and may not diminish the academic preparation necessary for students to complete high school. The requirements of the basic program shall be aligned to the academic content standards developed pursuant to § 13-3-48 and shall, at a minimum, include the content standards tested pursuant to § 13-3-55.
     Section  3.  That § 13-3-1.4 be amended to read as follows:
     13-3-1.4.   Subject to policies established by the South Dakota Board of Education, the secretary of the Department of Education has general supervision over all accredited elementary and secondary schools and postsecondary technical institutes in the state, including adult education, kindergarten, preschool, and summer schools.
     Section  4.  That § 13-39-8 be amended to read as follows:
     13-39-8.   Notwithstanding § 13-15-2, the general control and supervision over secondary vocational education as provided in this chapter is the duty of the director of career and technical education under the direction of the secretary of education.
     Section  5.  That § 13-39-9 be amended to read as follows:
     13-39-9.   The director has general control and supervision over all vocational education in all public secondary schools , public postsecondary institutions not under the control of the Board of Regents and all other vocational education functions assigned to him by the secretary of education.
     Section  6.  That § 13-39-12 be amended to read as follows:
     13-39-12.   The secretary of education may cooperate with federal agencies in the

administration of any acts of Congress relating to secondary vocational education.
     Section  7.  That chapter 13-39 be amended by adding thereto a NEW SECTION to read as follows:

     The Board of Regents may cooperate with federal agencies in the administration of any federal legislation relating to postsecondary vocational education.
     Section  8.  That § 13-39-13 be amended to read as follows:
     13-39-13.   The secretary of education may enter into contracts and agreements with any agency of the United States government or any agency of the state government or its political subdivisions for the purpose of secondary vocational education, receive grants of federal funds for secondary vocational education and expend those funds under rules adopted by the South Dakota Board of Education pursuant to chapter 1-26.
     Section  9.  That chapter 13-39 be amended by adding thereto a NEW SECTION to read as follows:

     The Board of Regents may enter into contracts and agreements with any agency of the United States government or any agency of the state government or its political subdivisions for the purpose of postsecondary vocational education and to expend those funds under rules promulgated by the Board of Regents pursuant to chapter 1-26.
     Section  10.  That § 13-39-17.1 be amended to read as follows:
     13-39-17.1.   The division Board of Regents may collect fees for credentialing postsecondary technical teachers. The division board shall credit all funds generated by these fees to a fund known as the postsecondary technical credentialing fund to be administered by the state treasurer. A payment The board may make payments from this fund is by voucher only on vouchers submitted to the state treasurer and is limited to promulgation of rules, forms, and incidental administrative costs associated with the credentialing of postsecondary technical

teachers.
     Section  11.  That § 13-39-18 be amended to read as follows:
     13-39-18.   The director executive director of the Board of Regents shall submit all requests for new programs from the postsecondary technical institutes in the state to the state board Board of Regents for action.
     Section  12.  That chapter 13-39 be amended by adding thereto a NEW SECTION to read as follows:

     Postsecondary technical institute advisory committees are hereby established. Each postsecondary technical institute under the control of the Board of Regents shall be represented by an advisory committee. The members of each postsecondary technical institute advisory committee shall be appointed by the Board of Regents. The membership of each postsecondary technical institute advisory committee shall include the director of the postsecondary technical institute, at least one representative from an LEA, representatives of local business and industry, and other members at the discretion of the board.

     Each postsecondary technical institute advisory committee shall meet with the Board of Regents at least once each year. The advisory committees shall make recommendations to the board regarding program offerings at the postsecondary technical institutes and offer other suggestions to enhance the public postsecondary vocational education available in the state.
     Section  13.  That § 13-39-19 be amended to read as follows:
     13-39-19.   The secretary of education may distribute funds appropriated to him by the Legislature or granted by any federal agency to the state in accordance with chapter 4-8B, for vocational education in public secondary and postsecondary technical institutes schools in the state in accordance with a state plan or plans adopted by the South Dakota Board of Education. The executive director of the Board of Regents may distribute funds appropriated by the

Legislature or granted by any federal agency to the state in accordance with chapter 4-8B for vocational education in the postsecondary technical institutes. The aid disbursed to the different schools of the state and all expenses incurred in the administration of the provisions of any federal acts relating to vocational education shall be paid out of the funds of the secretary appropriated for that purpose and from the federal funds allotted to the State of South Dakota for similar purposes. The state treasurer is the custodian of all money paid to the state from federal appropriations for the purpose of vocational education, and shall disburse the funds for secondary vocational education on warrants issued by the state auditor upon vouchers approved by the director of career and technical education and the funds for postsecondary vocational education on warrants issued by the state auditor upon vouchers approved by the executive director of the Board of Regents . The secretary of education shall authorize the director of career and technical education to submit vouchers to the state auditor for the amount payable as state and federal aid to each secondary school approved under the provisions of this chapter , and the Board of Regents shall authorize the executive director of the Board of Regents to submit vouchers to the state auditor for the amount payable as state and federal aid to each postsecondary technical institute approved under the provisions of this chapter . Upon receipt of the vouchers, the state auditor shall draw warrants on the state treasury in favor of the treasurer of the public secondary and or postsecondary technical institute for the sum approved by the secretary or the executive director .
     Section  14.  That § 13-39-21 be amended to read as follows:
     13-39-21.   The director of career and technical education shall prescribe a uniform system for gathering and reporting secondary vocational education data.
     Section  15.  That chapter 13-39 be amended by adding thereto a NEW SECTION to read as follows:

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     The Board of Regents shall prescribe a uniform system for gathering and reporting postsecondary vocational education data.
     Section  16.  That § 13-39-26 be amended to read as follows:
     13-39-26.   The provisions of this chapter do not apply to private business schools or private vocational institutions except that the Board of Regents, secretary of education , and LEAs may enter into contracts with these schools and institutions to provide vocational education.
     Section  17.  That § 13-39-27 be amended to read as follows:
     13-39-27.   For the purposes of providing secondary vocational education, all LEAs of this state may establish, in cooperation with the division, a vocational department, classes or facilities for vocational education, as provided in this chapter, under terms and conditions agreed upon. Any LEA board may enter into any agreement to provide secondary vocational education. An agreement made pursuant to this section is not subject to the limitation of the tuition law. An LEA may expend its money for secondary vocational education.
     Section  18.  That § 13-39-28 be amended to read as follows:
     13-39-28.   Anyone who may profit from the vocational education course to which the person applies may be enrolled upon application and acceptance in accordance with the provisions of §§ 13-39-1.2 to 13-39-29, inclusive, and as prescribed by the South Dakota Board of Education or the Board of Regents .
     Section  19.  That § 13-39-29 be amended to read as follows:
     13-39-29.   The Board of Regents, through the executive director, or the secretary of education, through the director of career and technical education , may receive, acquire, have charge of, and operate all properties for the purposes authorized in this chapter. The Board of Regents or secretary may acquire by gift, subject to the provisions of § 5-24-12, or purchase real and personal property for the use of vocational education and may dispose of or transfer the

same whenever the purposes of this chapter are benefited. The Neither the Board of Regents nor the secretary may not purchase, lease, sell, encumber, or alienate any real property without the consent and prior approval of the Legislature.
     Section  20.  That § 13-39-37 be amended to read as follows:
     13-39-37.   The South Dakota Board of Education Board of Regents may adopt promulgate rules pursuant to chapter 1-26, to be administered by the executive director, governing the operation and maintenance of postsecondary technical institutes which will afford the people of the state, insofar as practicable, an equal opportunity to acquire a public technical education. , and the South Dakota Board of Education may promulgate rules, pursuant to chapter 1-26, to be administered by the secretary through the director of career and technical education, governing the operation and maintenance of secondary vocational education programs. The rules shall afford the people of the state, as much as practicable, an equal opportunity to acquire a public technical education, and may provide for the following:

             (1)      Curriculum and standards of instruction and scholarship;

             (2)      Attendance requirements, age limits of trainees, eligibility for attendance, and tuition payments and other charges;

             (3)      Apportionment and distribution of funds made available to the board for carrying out the purposes of §§ 13-39-34 to 13-39-39, inclusive;

             (4)      Transportation requirements and payments;

             (5)      General administrative matters;

             (6)      The submission of the annual budget from each of the postsecondary technical institute which shall include, but is not limited to, institutes, which shall include a description of programs, a list of staff positions, and the amount for supplies and operating expenses associated with the programs offered. The rules shall require the

budget to Each budget submitted shall include all operating costs of programs, including those costs ineligible for reimbursement from federal and state funds, shall state the procedure for amending and filing it with the division of education services and resources board, and shall provide that failure to comply with the rules may result in withholding of payments from federal and state funds;

             (7)      The submission of plans of LEAs for new construction or major renovation of facilities eligible for reimbursement. The rules regarding these plans shall provide a requirement that the LEA or the Board of Regents , by a written resolution, declare the LEA be committed to begin construction if the budget of the state board appropriated by the Legislature provides the matching funds;

             (8)      The promotion and coordination of vocational education; and

             (9)      The duplication of programs.
     Section  21.  That § 13-39-37.1 be amended to read as follows:
     13-39-37.1.   Notwithstanding the provisions of §§ 13-16-6, 13-16-7, and 13-19-7, school districts The Board of Regents may not construct student union buildings and recreational facilities for postsecondary technical institute students. This restriction includes the use of student fees to pay for student union buildings and recreational or multi-use facilities. The provisions of this section may not be construed as a restriction of construction or operation of regular cafeteria or multi-use facilities for students at postsecondary technical institutes.
     Section  22.  That § 13-24-9 be amended to read as follows:
     13-24-9.   Any school board shall have power to erect, purchase, lease, rent, sell, equip, and move schoolhouses, dormitories, dwellings for teachers' homes, and other structures, fences, or other enclosure as the board shall deem necessary subject to the limitations as provided by law ; provided, however, that no school board may erect or purchase dormitories for use by

postsecondary or adult vocational education students attending postsecondary vocational schools .
     Section  23.  That chapter 13-39 be amended by adding thereto a NEW SECTION to read as follows:

     The Board of Regents may not erect or purchase dormitories for use by postsecondary or adult vocational education students attending postsecondary technical institutes.
     Section  24.  That § 13-39-38 be amended to read as follows:
     13-39-38.   The secretary of education shall apportion and distribute funds made available for postsecondary technical institutes secondary vocational education through a formula approved by the South Dakota Board of Education to the LEAs having jurisdiction over postsecondary technical institutes to assist in maintaining and operating those schools . The use of the funds are is subject to rules adopted promulgated by the state board South Dakota Board of Education pursuant to subdivision § 13-39-37(3) and in accordance with the approved state plan for vocational education . The Board of Regents shall apportion and distribute funds made available for postsecondary technical institutes.
     Section  25.  That § 13-39-39 be amended to read as follows:
     13-39-39.   The division Board of Regents shall distribute funds to the postsecondary technical institutes under the provisions of § 13-39-38 from money appropriated to the division board for that purpose, and from federal funds allotted to the State of South Dakota for that purpose.
     Section  26.  That § 13-39-39.1 be amended to read as follows:
     13-39-39.1.   LEAs operating postsecondary technical institutes The Board of Regents shall keep separate the accounting and funds for the operation of the postsecondary technical programs. The LEA board shall deposit receipts, student fees and income from state and federal

sources, as well as any other receipts incidental to the operation of the postsecondary technical institute, in the fund or funds created pursuant to this chapter.
     Section  27.  That § 13-39-34 be repealed.
     13-39-34.   Any LEA proposing to operate a postsecondary technical institute or establish an existing postsecondary technical institute as a separate legal entity may petition the state board pursuant to §§ 13-39-35 to 13-39-36, inclusive. The state board may conduct hearings, investigate school records, and secure other data relating to the proposed postsecondary technical institute, its geographical location, the demography and economy of the area, and any other facts relating to the proposed postsecondary technical institute which the state board may consider appropriate.
     Section  28.  That § 13-39-35 be repealed.
     13-39-35.   If the South Dakota Board of Education finds that the classification petitioned for would further the educational interests of the state, more nearly equalize the educational opportunities in certain phases of technical education to persons in this state who are of the age and maturity to pursue study in preparation for entering the labor market, be of potential benefit to persons in all communities of the state, and is otherwise in accordance with the plans of the state board, it may recommend the petition be approved by the Legislature.
     Section  29.  That § 13-39-35.1 be repealed.
     13-39-35.1.   If the Legislature approves the petition by passing a joint resolution, an LEA may operate a postsecondary technical institute. If an LEA begins to operate a postsecondary technical institute without the approval required by this section, that school is ineligible for state vocational education money. Adult vocational education programs are exempt from the provisions of this section.
     Section  30.  That § 13-39-35.2 be repealed.

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     13-39-35.2.   The joint resolution passed pursuant to § 13-39-35.1 shall specify the duties and powers of a postsecondary technical institute. The resolution may also specify the procedure for selecting members of the governing board, which may include local elections for such members. A school established pursuant to § 13-39-35.1 may be a distinct legal entity separate and apart from the school district or districts which established it.
     Section  31.  That § 13-39-36 be repealed.
     13-39-36.   If the petition is approved by the Legislature, the LEA may establish the proposed school and the state board shall classify the school as a postsecondary technical institute. The state board shall conduct general supervision as provided in § 13-39-37 and in the rules adopted pursuant to chapter 1-26 by the state board.
     Section  32.  That § 13-39-41 be amended to read as follows:
     13-39-41.   The school boards of two or more school districts may submit to the South Dakota Board of Education a proposed plan to establish a multidistrict center for secondary vocational education . The proposal shall be consistent with the state plan for vocational education and shall meet the rules as adopted promulgated by the state board pursuant to chapter 1-26.
     Section  33.  That § 13-39-42 be amended to read as follows:
     13-39-42.   When the state board receives a proposed plan to establish a multidistrict center for secondary vocational education , it shall examine the plan and may conduct hearings to receive evidence pertaining to the proposed multidistrict center. The state board may approve or disapprove the proposed plan.
     Section  34.  That § 13-39-64 be amended to read as follows:
     13-39-64.   The board Board of Education may adopt rules, pursuant to chapter 1-26, pertaining to the creation, dissolution, operation, control, supervision, and approval of multidistrict centers for secondary vocational education in South Dakota.

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     Section  35.  That § 13-39-66 be amended to read as follows:
     13-39-66.   Any LEA may enter into lease-purchase agreements with the health and educational facilities authority , the Board of Regents or the secretary of education for capital improvements for the design, acquisition, construction, equipping, or improvement of facilities the LEA considers necessary or appropriate. In addition, the Board of Regents or the secretary may enter into any lease-purchase agreement of such facilities either with an LEA or the health and educational facilities authority.

     Such lease-purchase agreements shall include such terms as the health and educational facilities authority considers necessary, including without limitation, terms of default, remedies, representations, and covenants of the lessee.

     No such lease-purchase agreements are effective until approved by the Board of Regents or the secretary of education. The term lease-purchase agreements as used in this section includes any sublease.
     Section  36.  That § 13-39-67 be amended to read as follows:
     13-39-67.   A lease-purchase agreement authorized by § 13-39-66 may be for a term of no more than thirty years, shall be approved by the Board of Regents or the LEA board on behalf of the LEA, may provide for the simultaneous conveyance of existing facilities to be leased-back with the improvements and other property being financed, may provide for all right, title and interest of the authority to be conveyed to the LEA , Board of Regents, or the secretary of education upon payment or other discharge of the bonds issued therefor, and may contain such other provisions as the authority and the state board Board of Education or the Board of Regents determine necessary or appropriate to secure payment of amounts due under such agreements. No other statute may limit or otherwise restrict the power and authority of an LEA , the Board of Regents, or the secretary to enter into such a lease-purchase agreement or govern the

procedure by which such agreement is authorized.
     Section  37.  That § 13-39-68 be amended to read as follows:
     13-39-68.   The Board of Regents or the secretary of education may contract with or enter into other agreements with the South Dakota Health and Educational Facilities Authority, one or more LEAs, the state treasurer or others in order to pledge or otherwise transfer all or any portion of tuition and other student fees subject to deposit in the a tuition subaccount in order to secure payments by any LEA or the board or the secretary under a lease-purchase agreement with the authority. Any such contract or other agreement may also provide for the release from such pledge and lien of such amounts as are deemed not to be necessary for payment of amounts currently due and owing under lease-purchase agreements. Any such pledge of such tuition and other student fees shall be valid and binding from the time when the pledge is made. The amount of tuition and other fees so pledged and thereafter received shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against the LEAs and any other persons having claims of any kind in tort, contract, or otherwise against the LEA, the board, the secretary, the authority, the state treasurer or any other person, irrespective of whether such persons have notice thereof. Neither the contract nor any other agreement or instrument by which a pledge is created need to be recorded.
     Section  38.  That § 13-39-69 be amended to read as follows:
     13-39-69.   There is created a separate trust fund on behalf of the Board of Regents and the secretary of education to be on deposit with the state treasurer, such fund to be designated the vocational education facilities fund. The fund established hereby shall consist of all appropriations by the State Legislature specifically designated for deposit therein and any other moneys designated for deposit therein, including any investment earnings thereon. The treasurer

may create subfunds or accounts within the trust fund created under this section as the treasurer considers necessary. Any earnings from the investment of such fund may be transferred annually by the state treasurer to the tuition subaccount established by § 13-39-70.
     Section  39.  That § 13-39-70 be amended to read as follows:
     13-39-70.   There is hereby created within the vocational education facilities fund a secondary tuition subaccount and a postsecondary tuition subaccount . The secretary may determine and require that all or any portion of the tuition and other student fees payable to an LEA shall be deposited in the secondary tuition subaccount. The Board of Regents may determine and require that all or any portion of the tuition and other student fees payable to the Board of Regents shall be deposited in the postsecondary tuition subaccount. No moneys may be disbursed from the tuition subaccount subaccounts for any purpose other than to pay lease rentals or other amounts due and owing in connection with:

             (1)      Any facility originally leased to the board of regents Board of Regents but now utilized for vocational education so long as such facility is on the campus of a postsecondary technical institute; and

             (2)      Any lease-purchase agreement authorized under §§ 13-39-66 and 13-39-67 unless and until the health and educational facilities authority files with the state treasurer a certification that it has on deposit or there has otherwise been appropriated sufficient moneys to pay all amounts due or to become due within the next three months on all such lease-purchase agreements.

     No lease rentals on facilities described in subsection (1) shall be paid unless the secretary of education or the Board of Regents has approved the assumption of the former board of regents' Board of Regents' lease obligations by the tuition subaccount. Thereafter, the state treasurer shall retain in the vocational education facilities fund for future repair and

improvement as authorized by the Legislature such amounts, not to exceed ten percent thereof, as the secretary or the board shall direct.
     Section  40.  That § 13-39-71 be amended to read as follows:
     13-39-71.   All or any portion of the lease-purchase obligations under or in connection with any lease-purchase agreement authorized under §§ 13-39-66 and 13-39-67 may be paid or discharged out of moneys available from the investment earnings on the vocational education trust fund or from any amounts on deposit in the a tuition subaccount of such fund upon the determination by the Board of Regents or the secretary of education to pledge or otherwise transfer such amounts to the health and educational facilities authority.
     Section  41.  That § 13-39-72 be amended to read as follows:
     13-39-72.   An LEA operating an An approved postsecondary vocational school under the control of the Board of Regents may award an associate in applied sciences degree. The state board may promulgate rules pursuant to chapter 1-26 providing for approval of programs in postsecondary vocational education schools leading to an associate in applied science degree. In approving any program, the state board shall consider curriculum, required hours, quality of instruction, minimum standards for entry into the programs, and standards for program completion.
     Section  42.  That § 13-53-43 be amended to read as follows:
     13-53-43.   All general education course credit hours fulfilling graduation requirements in institutions accredited by the North Central Association of Colleges and Secondary Schools accrediting agency shall be transferable between the universities under the control of the South Dakota Board of Regents and the postsecondary technical institutes governed by the South Dakota Board of Education Regents . General education course credit hours are transferable between the technical institutes and universities only for credit for general education courses.

"General education" is For purposes of this section, general education courses are defined as those courses which are not directly related to the student's formal technical, vocational, or professional preparation ; , but are part of every student's course of study regardless of area of emphasis; and intended to impart common knowledge, intellectual concepts, and attitudes that every educated person should possess.
     Section  43.  That § 13-53-44 be amended to read as follows:
     13-53-44.   Commencing July 1, 1999, technical institutes governed by the Board of Education Regents and accredited by the North Central Association of Colleges and Secondary Schools and universities governed by the Board of Regents and accredited by the North Central Association of Colleges and Secondary Schools shall have articulation agreements in place to transfer sixty-four credit hours in the General Studies Baccalaureate Degree program and up to sixty-four credit hours in compatible programs offered by the respective institutions under the control of the Board of Regents. By December 1, 1998, the Board of Education and the Board of Regents shall report to the Executive Board of the Legislative Research Council on the progress of articulation agreements and the implementation of §§ 13-53-43 and 13-53-44. The Board of Regents and the Board of Education shall, by agreement, set the criteria and requirements for the transfer of any credits .
     Section  44.  That § 1-14-14.3 be amended to read as follows:
     1-14-14.3.   Any state agency, department, board, or commission , or school district operating a postsecondary vocational-technical school as authorized by chapter 13-39, that determines that an authorized amount of contributions, interest, or penalty is uncollectible may refer the collection process to a vendor approved by the Bureau of Administration. Reasonable fees for collection, as determined by the commissioner of the Bureau of Administration, shall be added to the amount of the debt and the debtor is liable for repayment of the total amount due

including the collection fee.
     Section  45.  That § 33-6-6 be amended to read as follows:
     33-6-6.   Any member of the National Guard of the State of South Dakota, who is a resident of the State of South Dakota and who possesses the entrance requirements for admission to any postsecondary vocational program, is entitled to complete one program of study approved by the State Board of Education Board of Regents in any state postsecondary vocational education institution upon payment of fifty percent of the tuition charges. The remaining tuition shall be paid by the Department of Military and Veterans Affairs out of funds appropriated for the purpose of paying fifty percent of the tuition.