ENTITLED, An Act to require the Legislature to approve bonds for lease purchase agreements with
the four postsecondary technical institutes, and to approve bonds for lease purchase agreements
with Western Dakota Technical Institute and Southeast Technical Institute.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 1-16A be amended by adding thereto a NEW SECTION to read as
follows:
Beginning July 1, 2013, any bonds, notes or other obligations of the authority which are payable
out of receipts, rentals, and other payments made pursuant to lease purchase agreements with the
Western Dakota Technical Institute, the Southeast Technical Institute, the Lake Area Technical
Institute, the Mitchell Technical Institute, or the South Dakota Board of Education under the
authority of chapter 13-39 may only be issued if the Board of Education determines, by the adoption
of a resolution, that the estimated receipts, rentals, and other payments, including appropriations by
the Legislature, student fee payments, or other balances or revenues pledged under the applicable
bond indenture or similar agreement will not be less than one hundred three percent of the projected
scheduled payments of principal and interest on all outstanding bonds which, for purposes of that
determination shall include the proposed bonds to be issued and shall exclude any bonds to be
refunded. In issuing additional bonds, the authority may conclusively rely upon the determination
of the board.
Section 2. That chapter 1-16A be amended by adding thereto a NEW SECTION to read as
follows:
The South Dakota Board of Education shall promulgate rules pursuant to chapter 1-26
establishing a methodology for forecasting anticipated contributions from student tuition and fees
and additional state appropriations available pursuant to a lease purchase agreement to meet the
projected scheduled payments of principal and interest on all outstanding bonds and other
benchmarks.
Section 3. That chapter 1-16A be amended by adding thereto a NEW SECTION to read as
follows:
Beginning on July 1, 2013, the issuance of any additional bonds, notes, or other obligations shall
be approved by the Legislature before issuance. This requirement, however, does not apply to the
issuance of bonds for the purposes of refinancing or refunding existing bonds, notes, or other
obligations.
Section 4. The issuance by the Health and Educational Facilities Authority of additional bonds,
notes, or other obligations in a principal amount not to exceed eighteen million five hundred
thousand dollars for a lease purchase agreement with the Western Dakota Technical Institute to
finance the acquisition, construction, and other costs associated with technical lab space and
classrooms for various programs, including diesel technician and technology, agriculture science,
construction technology, fire science, paramedic and emergency medical technicians, and to remodel
the South Mickelson building is hereby authorized and approved.
Section 5. The issuance by the Health and Educational Facilities Authority of additional bonds,
notes, or other obligations in a principal amount not to exceed twenty million dollars for a lease
purchase agreement with the Southeast Technical Institute to finance the acquisition, construction,
and other costs associated with a transportation technology center to house various technical
programs, including diesel, auto, and auto body collision programs and other facility improvements
necessary for other programs is hereby authorized and approved.
Section 6. Beginning in fiscal year 2015, payments made pursuant to lease purchase agreements
with the Western Dakota Technical Institute, the Southeast Technical Institute, the Lake Area
Technical Institute, the Mitchell Technical Institute, or the South Dakota Board of Education under
the authority of chapter 13-39 shall be paid in part from an appropriation to be made by the
Legislature in an amount that is equal to or greater than fifty percent of the technical institute facility
fee that is administered by the Department of Education.
Section 7. That § 1-16A-77 be repealed.
An Act to require the Legislature to approve bonds for lease purchase agreements with the four
postsecondary technical institutes, and to approve bonds for lease purchase agreements with Western
Dakota Technical Institute and Southeast Technical Institute.
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I certify that the attached Act
originated in the
HOUSE as Bill No. 1098
____________________________
Chief Clerk
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____________________________
Speaker of the House
____________________________
Chief Clerk
____________________________
President of the Senate
____________________________
Secretary of the Senate
House Bill No. 1098
File No. ____
Chapter No. ______
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Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
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The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
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STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
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