(Senate Bill 203)
An Act to revise certain provisions regarding utility facilities and revenue bonds.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That § 46A-9-56 be AMENDED:
46A-9-56. Any district organized pursuant to this chapter may borrow money and incur indebtedness for any corporate use or purpose authorized in this chapter and to the extent applicable pursuant to chapter 9-40, provided the indebtedness, liability, or obligation of the district for the payment of money in any manner, and whether arising from contract, implied contract, or otherwise, is payable solely:
(1) From revenues, income,
receipts, and profits derived by the district from its operation and
management of systems and irrigation works as provided
in this chapter
or in chapter 9-40;
(2) From the issuance or sale by the district of its warrants, notes, revenue bonds, debentures, or other evidences of indebtedness, (hereinafter referred to in this section as "district obligations") payable solely from such revenues, income, receipts, and profits. All bonds shall be authorized, issued, and sold as provided in chapter 6-8B and to the extent applicable under chapter 9-40. However, no bond election is required.
Section 2. That § 46A-9-71 be AMENDED:
If, in order to
borrow money from the federal government or from any of its agencies,
or from the State of South Dakota
or from any other public or private provider of financing,
it becomes necessary that the water user district mortgage or
otherwise hypothecate any of its property or assets to secure the
payment of a loan made to it by or from such a source, the district
may mortgage or hypothecate the property and assets for
Nothing in this section prevents the district from assigning,
pledging, or otherwise hypothecating its revenues, incomes, receipts,
or profits to secure the payment of indebtedness to the federal
government or any federal agency,
State of South Dakota,
or any other public or private provider of financing.
However, the State of South Dakota may never pledge its credit or
funds, or any part of its credit or funds, for the payment or
settlement of any indebtedness or obligation whatsoever of any
district created under the provisions of this chapter. Nothing in
this chapter authorizes any agency of the State of South Dakota to
make loans to any such district, unless the agency is otherwise
authorized by law to make such loans.
Signed March 16, 2022
Catchlines are not law. (§ 2-16-13.1) Underscores indicate new language.
indicate deleted language.