Science and Technology Authority created.
The Legislature finds and declares:
Terms used in this Act mean:
The governing and administrative powers of the authority are vested in its board of
directors consisting of seven members. The Governor shall appoint the directors, with the advice
and consent of the Senate. Not all members of the board may be of the same political party. The
terms of the members of the board may not exceed six years. The terms of the initial board of
directors shall be staggered by the drawing of lots so that not more than two of the director's terms
shall end at the same time. Members of the board may serve more than one term.
The Governor may remove any member of the board for cause, including
incompetence, neglect of duty, or malfeasance in office.
Members of the board shall receive compensation for the performance of their duties
as established by the Legislature in accordance with
4-7-10.4 from the funds of the authority.
Members may be reimbursed at rates established by the Bureau of Personnel for necessary
expenses, including travel and lodging expenses, incurred in connection with the performance of
their duties as members.
Each member of the board shall, before entering upon the duties of office, take and
subscribe the constitutional oath of office.
The board shall meet on the call of the chair, upon the written request of four
members of the board, or upon the request of the executive director.
A majority of the members of the board constitute a quorum for the transaction of
business. All official acts of the authority shall require the affirmative vote of at least four
members of the board at a meeting of the board at which the members casting those affirmative
votes are present.
Notwithstanding any other law to the contrary it is not a conflict of interest for a
trustee, director, officer, or employee of any health institution, educational institution, financial
institution, investment banking firm, brokerage firm, commercial bank or trust company,
architectural firm, engineering firm, mining firm, insurance company, or any other firm, person,
or corporation to serve as a member of the authority, if the trustee, director, officer, or employee
abstains from deliberation, action, and vote by the authority in each instance where the business
affiliation of any such trustee, director, officer, or employee is involved.
Each meeting of the authority for any purpose whatsoever shall be open to the
public as required by chapter 1-25. Notice of meetings shall be as provided in the bylaws of the
authority. Resolutions need not be published or posted.
The executive director or other person designated by the authority shall keep a
record of the proceedings thereof and shall be custodian of all books, documents, and papers filed
with the authority, the minute books or journal of the authority and its official seal. The executive
director or other person designated by the authority may cause copies to be made of all minutes and
other records and documents of the authority and may give certificates under the official seal of
the authority to the effect that such copies are true copies and all persons dealing with the authority
may rely on such certificates.
The authority may:
The authority may invest any funds not needed for immediate investment in the
rated in the highest investment classification by at least two standard rating services of
The authority shall have the continuing power to issue revenue bonds, notes, or
other evidences of indebtedness to pay the cost incurred in connection with developing,
constructing, acquiring, improving, maintaining, operating, and decommissioning projects. For the
purpose of evidencing the obligations of the authority to repay any money borrowed, the authority
may, pursuant to resolution, from time to time issue and dispose of its interest bearing revenue
bonds, notes, or other instruments and may also from time to time issue and dispose of such bonds,
notes, or other instruments to refund, at maturity, at a redemption date or in advance of either, any
revenue bonds, notes, or other instruments pursuant to redemption provisions or at any time before
maturity. All such revenue bonds, notes, or other instruments shall be payable solely from the
revenues or income to be derived with respect to projects, from the leasing or sale of the projects,
or from any other funds available to the authority for such purposes. The revenue bonds, notes, or
other instruments may bear such date or dates, may mature at such time or times not exceeding
forty years from their respective dates, may bear interest at such rate or rates, may be in such form,
may carry such registration privileges, may be executed in such manner, may be payable at such
place or places, may be made subject to redemption in such manner and upon such terms, with or
without premium as is stated on the face thereof, may be authenticated in such manner, and may
contain such terms and covenants as may be provided by an applicable resolution.
Any holder of any revenue bonds, notes, or other instruments issued by the
authority may bring suits at law or proceedings in equity to compel the performance and
observance by any corporation or person or by the authority or any of its agents or employees of
any contract or covenant made with the holders of such revenue bonds, notes, or other instruments,
to compel such corporation, person, the authority, and any of its agents or employees to perform
any duties required to be performed for the benefit of the holders of any such revenue bonds, notes,
or other instruments by the provision of the resolution authorizing their issuance and to enjoin such
corporation, person, the authority, and any of its agents or employees from taking any action in
conflict with any such contract or covenant.
If the authority fails to pay the principal of or interest on any of the revenue bonds
or premium, if any, as the same become due, a civil action to compel payment may be instituted
in the appropriate circuit court by the holder or holders of the revenue bonds on which such default
of payment exists or by an indenture trustee acting on behalf of such holders. Delivery of a
summons and a copy of the complaint to the chair of the board constitutes sufficient service to give
the circuit court jurisdiction of the subject matter of such a suit and jurisdiction over the authority
and its officers named as defendants for the purpose of compelling such payment.
Notwithstanding the form and tenor of any such revenue bonds, notes, or other
instruments and in the absence of any express recital on the face of any such revenue bond, note,
or other instruments that it is non-negotiable, all such revenue bonds, notes, and other instruments
shall be negotiable instruments. Pending the preparation and execution of any such revenue bonds,
notes, or other instruments, temporary revenue bonds, notes, or instruments may be issued as
provided by resolution.
The revenue bonds or notes shall be secured as provided in the authorizing
resolution which may, notwithstanding any other provision of this Act, include in addition to any
other security a specific pledge or assignment of and lien on or security interest in any or all
revenues or money of the authority from whatever source which may by law be used for debt
service purposes and a specific pledge or assignment of and lien on or security interest in any
funds or accounts established or provided for by resolution of the authority authorizing the
issuance of such revenue bonds, notes, or other instruments. Any pledge made by the authority of
revenues or other moneys received or to be received by the authority pursuant to an agreement with
a governmental agency relating to a project to pay revenue bonds, notes, or other evidences of
indebtedness of the authority shall be binding from the time the pledge is made. Revenues and
other moneys received or to be received by the authority pursuant to an agreement with a
governmental agency relating to a project so pledged to pay revenue bonds, notes, or other
evidences of indebtedness of the authority shall be held outside of the state treasury and in the
custody of the authority or a trustee or a depository appointed by the authority. Revenues or other
moneys received or to be received by the authority pursuant to an agreement with a governmental
agency relating to a project so pledged to pay revenue bonds, notes, or other evidences of
indebtedness of the authority and thereafter received by the authority or such trustee or depository
shall immediately be subject to the lien of the pledge without any physical delivery thereof or
further act, and the lien of any pledge shall be binding against all parties having claims of any kind
of tort, contract, or otherwise against the authority or the State of South Dakota, irrespective of
whether the parties have notice thereof. Neither the resolution nor any other instrument by which
a pledge is created need be filed or recorded except in the records of the authority.
The State of South Dakota pledges to and agrees with the holders of the revenue
bonds and notes of the authority issued pursuant to this Act that the state will not limit or decrease
the rights and powers vested in the authority by this act so as to impair the terms of any contract
made by the authority with such holders or in any way impair the rights and remedies of such
holders until such revenue bonds, notes, or other instruments, together with interest thereon, with
interest on any unpaid installments of interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of such holders, are fully met and discharged. The authority
is authorized to include these pledges and agreements of the state in any contract with the holders
of revenue bonds, notes, or other instruments issued pursuant to this section.
Nothing in this Act may be construed to authorize the authority to create a debt of
the state within the meaning of the Constitution or statutes of South Dakota and all revenue bonds,
notes, other instruments and obligations issued by the authority pursuant to the provisions of this
Act are payable and shall state that they are payable solely from the funds pledged for their
payment in accordance with the resolution authorizing their issuance or in any trust indenture or
mortgage or deed of trust executed as security therefor. The state is not in any event liable for the
payment of the principal of or interest on any bonds, notes, instruments, or obligations issued by
the authority or for the performance of any pledge, mortgage, obligation, or agreement of any kind
whatsoever which may be undertaken by the authority. No breach of any such pledge, mortgage,
obligation, or agreement may impose any pecuniary liability upon the state or any charge upon its
general credit or against its taxing power.
Any documentary material or data made or received by the authority for purposes
under this Act, to the extent that such material or data consists of trade secrets, scientific or
technical secrets, matters involving national security, or commercial or financial information
regarding the operation of a business, may not be considered public records, and are exempt from
disclosure. Any discussion or consideration of such information may be held by the authority in
The authority may acquire title to any project with respect to which it exercises its
The authority may acquire by purchase, lease, gift, or otherwise any property or
rights to any property from any person or any governmental agency, whether improved for the
purposes of any prospective project or unimproved. The authority may also accept any donation
of funds for its purposes from any of those sources.
The authority may acquire, develop, construct, improve, maintain, operate, and
decommission any project, either under its own direction or through collaboration with any
approved applicant, or to acquire any project through purchase or otherwise, using for that purpose
the proceeds derived from its sale of revenue bonds, notes, or other instruments or governmental
loans, grants or other funds and to hold title to those projects in the name of the authority.
The authority may enter into intergovernmental agreements with any governmental
The authority may share employees with governmental agencies.
The provisions of
5-2-19 do not apply to real or personal property given to the
Any department, board, commission, agency, or officer of this state or the Board
of Regents of the State of South Dakota, may transfer jurisdiction of or title to any property to, or
may exchange property under its control with, the authority if the transfer or exchange is approved
in writing by the Governor as being advantageous to the state.
The authority shall designate a qualified public depository as defined in
as a depository of its money. Those depositories shall be designated only within the state and upon
condition that bonds approved as to form and surety by the authority and at least equal in amount
to the maximum sum expected to be on deposit at any one time shall be first given by the
depositories to the authority, those bonds to be conditioned for the safekeeping and prompt
repayment of the deposits. If any of the funds of the authority are deposited by the treasurer in any
such depository, the treasurer and the sureties on the treasurer's official bond are, to that extent,
exempt from liability for the loss of any of the deposited funds by reason of the failure, bankruptcy,
or any other act or default of the depository. However, the authority may accept assignments of
collateral by any depository of its funds to secure the deposits to the same extent and conditioned
in the same manner as assignments of collateral are permitted by law to secure deposits of the
funds consistent with the provisions of chapter 4-6A.
Section 37. The income of the authority and all land, improvements, equipment, fixtures, or other property interests owned by the authority are exempt from all taxation in the State of South Dakota. The authority is exempt from the provisions of chapter 47-31A.
Notwithstanding any other provisions of law, all funds received by the authority
shall be set forth in an informational budget as described in
The functions and programs of the former Homestake Laboratory Conversion
Project are transferred to the authority.
The authority may accept the donation of the former Homestake Mine in Lead,
South Dakota, or any part thereof.
The sections, clauses, sentences, and parts of this Act are severable, are not matters
of mutual essential inducement, and any of them may be excised by any court of competent
jurisdiction if this Act would otherwise be unconstitutional or ineffective. It is the intention of this
Act to confer upon the authority the whole or any part of the powers in this Act provided for, and
if any one or more sections, clauses, sentences, and parts of this Act are for any reason questioned
in any court of competent jurisdiction and are adjudged unconstitutional or invalid, the judgment
does not affect, impair, or invalidate the remaining provisions thereof, but is confined in its
operation to the specific provision or provisions so held unconstitutional or invalid, and the
inapplicability or invalidity of any section, clause, sentence, or part of this Act in any one or more
instances does not affect or prejudice its applicability or validity in any other instance.
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.