State of South Dakota
LEGISLATIVE ASSEMBLY, 2012
This bill has been extensively amended (hoghoused) and may no longer be consistent
with the original intention of the sponsor.
SENATE STATE AFFAIRS
ENGROSSED NO. SB 188 - 2/13/2012
Introduced by: Senator Olson (Russell) and Representative Lust
FOR AN ACT ENTITLED, An Act to authorize the establishment, operation, and control of
research parks on lands controlled by the Board of Regents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. The Legislature finds that to increase research and technology-related economic
activity in South Dakota and to expand the opportunities for South Dakota faculty members,
researchers, and students to participate in the application of research results and technological
innovations in commerce, government, or public service, it is critically important to encourage
research opportunities and programs within the regental system. To these ends, the Legislature
intends that this Act be construed as authorizing and encouraging coordinated public and private
investments in facilities situated on lands controlled by the Board of Regents and designed to
support commercial application of research results and technological innovations.
Section 2. Terms as used in this Act mean:
(1) "Private party lessee or contractor," a business, a nonprofit corporation, or a research
park corporation authorized by lease, contract, or agreement with the Board of
Regents to construct, finance, operate, maintain, reconstruct, remodel, and manage,
at its expense and risk, any research park established pursuant to this Act;
(2) "Research," an investigation aimed at the discovery of new knowledge to create a
new product or service, a new process or technique, or to bring about a significant
improvement in an existing product or process;
(3) "Research park," a planned real estate development designed to promote the practical
application of university research, to aid the transfer of knowledge, technology, and
business skills through collaboration between universities and industry, government,
or other organizations that apply research or technology, and to assist in the growth
of research-based and technology-led economic development for the community,
region, and state, by bringing together universities, institutes, laboratories,
businesses, and governmental and other organizations devoted to testing, research,
and development activities, to the commercial, governmental, or public policy
application of research results or technological innovation, or to the management of
research or technology-based enterprises, agencies, or organizations. The term
includes such enterprises as may be necessary to support the activities of the primary
tenants, their staff, or visitors; and
(4) "Research park corporation," any nonprofit corporation formed pursuant to this Act
and Title 47 for the purpose of constructing, financing, developing, maintaining, and
operating a research park.
Section 3. The Board of Regents may utilize state lands under its control for the
construction, development, maintenance, and operation of research parks.
Section 4. A research park authorized by this Act may accommodate all kinds of facilities,
laboratories, businesses, or organizations usually found at research parks affiliated with
Section 5. If any lands used for purposes of a research park are determined to be subject to
the school and public lands trust established pursuant to S.D. Const., Art. VIII, § 7, then:
(1) A civil, state, religious, or public organization seeking to develop and to operate a
research park may make application to the commissioner of school and public lands
for conveyance pursuant to § 5-9-34. If the Board of Regents agrees to transfer
possession of the land, the commissioner may convey defeasible title as provided in
§ 5-9-35 for the purpose of operating a research park. Upon any reversion, the land
shall once again be placed under the control of the Board of Regents as part of the
campus from which it was originally severed; or
(2) The Board of Regents may select other lands under its control of equal value, as
determined by the commissioner of school and public lands, and exchange such other
lands for those comprising the research park in order to maintain the principal of the
school and public lands trust.
Section 6. Any mineral rights to state lands on which a research park has been established
shall be administered to support research park operations.
Section 7. Notwithstanding any other provision of law, including chapter 5-7, the Board of
Regents when approving a research park lease or sublease may lease such portions of the
mineral interests reserved to the State of South Dakota in the lands occupied by the research
park as may be necessary to permit the research park and its tenants to use geothermal resources
for heating or cooling on-site facilities. The mineral interests may be leased on behalf of the
State of South Dakota acting by and through the Board of Regents in a manner and upon terms
acceptable to the board.
Section 8. The commissioner of school and public lands may not authorize the lease of
mineral rights if exploitation of such rights would disturb the use of the research park, nor
authorize construction of dams, canals, water ditches, or laterals if such structures would impair
the use of the research park.
Section 9. The Board of Regents may enter into any lease, contract, or agreement with a
business, a nonprofit corporation, or a research park corporation to permit that entity, at its
expense and risk, to construct, finance, maintain, and operate any research park established
pursuant to this Act.
Section 10. No lease, contract, or agreement may be construed to authorize the private party
lessee or contractor, or any subtenant, creditor, trustee, receiver, lien holder, heir, assignee, or
other party claiming an interest or right through such private party lessee or contractor, to use
or to permit the use of the research park for purposes other than those specified in this Act.
Section 11. The lease, contract, or agreement may permit the private party lessee or
contractor, or other parties claiming an interest or right through them, to pledge for
commercially reasonable periods of time such rights of use or occupancy as may be possessed
in order to obtain financing. However, no such pledge impairs the reversionary interests of the
Board of Regents.
Section 12. No lease granted pursuant to this Act may have a duration exceeding ninety-nine
Section 13. Each lease, contract, or agreement shall contain provisions that require
commercially reasonable performance by the private lessee or contractor. Each lease, contract,
or agreement shall contain provisions that reserve to the Board of Regents the power to enforce
the requirements of this Act and of any leases, contracts, or agreements issued pursuant to it,
which reserved powers shall include the power of termination.
Section 14. Notwithstanding any other provision of law to the contrary, upon termination
of any such lease, contract, or agreement, the Board of Regents may take title to all
improvements comprising the research park.
Section 15. Nothing in this Act authorizes the Board of Regents or any entity operating a
research park under a lease, contract, or agreement with the Board of Regents to contract a debt
on behalf of, or in any way to obligate, the State of South Dakota, or to pledge, assign, or
encumber in any way, or to permit the pledging, assigning, or encumbering in any way, of
appropriations made by the Legislature of the State of South Dakota. No debt or liability of a
research park is an indebtedness, legal or moral, of the State of South Dakota, and no creditor
may have recourse against the State of South Dakota or any fund created or maintained directly
or indirectly from state taxation.
Section 16. The Board of Regents may form one or more research park corporations,
separate and apart from the state, to construct, finance, develop, maintain, and operate research
parks or economic development initiatives that support the teaching, research, or service mission
of the university system by expanding opportunities for South Dakota faculty members,
researchers, and students to participate in the application of research results and technological
innovations in commerce, government, or public service.
Section 17. Each research park corporation formed pursuant to section 16 of this Act shall
be governed by, and all of the corporation's functions, powers, and duties shall be exercised by,
a board appointed by the Board of Regents. Each research park corporation shall have the Board
of Regents as its sole member. Members of the board may include university presidents, regents,
university officers or employees, and other persons selected by the Board of Regents.
Section 18. No portion of the net earnings realized by any research park corporation formed
pursuant to section 16 of this Act may inure to any director or officer of the corporation or to
any private entity or individual.
Section 19. No research park corporation formed pursuant to section 16 of this Act may be
deemed an agency, public body, or other political subdivision of South Dakota, and no research
park corporation formed pursuant to section 16 of this Act may borrow money secured by the
State of South Dakota.
Section 20. No research park corporation formed pursuant to section 16 of this Act is subject
to statutes or rules regulating the conduct of public bodies, including those relating to personnel,
procurement of goods and services, board meetings, disposition or acquisition of property,
capital outlays, per diem and mileage, and inspection of records. Nothing in this section relieves
a research park corporation of the obligation to conform to criminal laws or other statutes of
Section 21. A research park corporation formed pursuant to section 16 of this Act shall have
all rights, powers, and privileges granted to nonprofit corporations pursuant to Title 47 which
are necessary and convenient to carry out and to effectuate the provisions of this Act.