HB 1249 South Dakota House · 2026 Regular Session

amend provisions pertaining to the School Finance Accountability Board, and the process by which a recommendation of the board is approved.

HB 1249 modifies the process for school districts to request waivers of financial penalties under South Dakota law. It requires the School Finance Accountability Board to create specific rules for how districts can apply for waivers, including documentation needed to prove "special circumstances" (like retirement impacts on cash balances). The bill also adds that waiver conditions must include maintaining cash balance requirements for three years or meeting teacher pay standards for three years, with penalties for noncompliance. These changes directly affect school districts facing financial penalties under Sections 13-13-73.5, 13-13-73.6, or 13-13-73.8. The bill clarifies the board’s role in reviewing waiver requests and the Joint Committee’s authority to approve or amend them.

Issues: ✓ Education

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Mar 2026

Signed into Law

Mar 2026

Introduced Feb 25, 2026 Signed Mar 30, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

House Appropriations Engrossed → Enrolled · 5 edits · Mar 10, 2026

MODERATE

This bill amends South Dakota's school finance laws to create a School Finance Accountability Board and modify how the state handles reductions in school funding. The changes establish a new board to review and potentially waive funding penalties when schools face cash flow issues, while also adding conditions for waiving penalties related to teacher salary requirements.

Scope change

The bill expands the scope by creating a new oversight body (School Finance Accountability Board) and modifying the criteria for when the state can reduce or waive school funding penalties.

REQUIREMENT

Created a new School Finance Accountability Board with five members appointed by the Governor to review and potentially waive funding reductions and penalties for school districts.

Added requirement that the board must establish rules for waiver requests and consider the impact of employee retirements when evaluating waiver requests.

ELIGIBILITY

Added conditions for waiving penalties: districts must demonstrate special circumstances for cash balance issues, or commit to increasing teacher compensation and paying state minimum salaries for at least three years.

ENFORCEMENT

The board can rescind waivers if districts fail to meet conditions during the three-year compliance period, reinstating the original penalties.

TIMELINE

School districts created or reorganized after July 1, 2016, receive a three-year exemption from funding reductions.

Floor votes · Senate Mar 9, 2026

How they voted

33–0

Passed · 2 other

Total votes 35

Mar 9, 2026

D Democratic3

3 Yea

100% Yea

R Republican32

30 Yea 2

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 30, 2026

Signed into law

Signed by the Governor on 2026-03-30 H.J. 580

executive

Mar 11, 2026

Upper · Passed

Signed by the President S.J. 526

upper

Mar 10, 2026

Upper · Passed

Signed by the Speaker H.J. 553

upper

Mar 9, 2026

Upper · Passed

Senate Do Pass Amended , Passed, YEAS 33, NAYS 0 S.J. 497

upper

Mar 9, 2026

Senate · Passed

Senate Vote: pass (33-0-2)

senate

Mar 5, 2026

Upper · Passed

Education Do Pass , Passed, YEAS 5, NAYS 2 S.J. 17

upper

Feb 25, 2026

Introduced

First read in Senate and referred to Senate Education S.J. 398

upper

Feb 24, 2026

Lower · Passed

House of Representatives Do Pass Amended , Passed, YEAS 61, NAYS 5 H.J. 423

lower

Feb 20, 2026

Lower · Passed

Certified uncontested, placed on consent , Passed, H.J. 2

lower

Feb 20, 2026

Lower · Passed

Committee on Appropriations Do Pass Amended , Passed, YEAS 8, NAYS 0 H.J. 2

lower

Feb 20, 2026

Introduced

Committee on Appropriations Motion to amend , Passed, H.J. 1 Amendment 1249A

lower

Feb 4, 2026

Committee

Referred to House Committee on Appropriations H.J. 223

lower

2 primary · 0 co-sponsors