HB 1204 creates the South Dakota school construction fund, administered by the Department of Education, to provide zero-interest loans to school districts for building or expanding school facilities. Loans cover up to 40% of a project's cost, with repayment over 20 years at 0% interest and no collateral required. Funds are allocated 30% to districts with 4,000+ students and 70% to other districts, beginning with a $1 transfer from the general fund (replenished by loan repayments). The bill also establishes reporting requirements for the Department of Education to a legislative committee.
Senate Bill 174 appropriates $5 million from the general fund to the South Dakota Department of Education to help cover school districts' operational costs, such as staffing and supplies. The funds will be distributed directly to school districts based on each district's 2026 fall enrollment relative to the state's total enrollment. Districts must use the funds for day-to-day operational expenses, not capital projects, and any unspent money by June 30, 2027, will revert to the state. This bill affects all public school districts in South Dakota through their 2026 enrollment figures.
This bill updates South Dakota's background check requirements for school employees. It requires criminal background investigations for technical college instructors and student teachers during initial hiring, while allowing multi-district employees to use existing checks (within 5 years) if districts share results with written consent. School districts must report terminations due to criminal convictions to the Department of Education within 10 days. The bill exempts event referees from background checks and clarifies that districts may refuse employment for certain serious offenses like sex crimes or violence.
HB 1137 allocates $40 million from state funds for the design and construction of a new athletic facility at the University of South Dakota. The facility will include an indoor track, practice areas, seating for 2,000 spectators, and supporting amenities like locker rooms and training spaces. The bill allows for cost adjustments up to 125% of the original estimate to account for inflation or regulatory changes, and declares an emergency to expedite the project. Unspent funds would revert per state procedures, and the project cannot create state debt or liens. The bill directly affects the University of South Dakota's athletic programs and facilities.
SB 205 revises drone registration fees in South Dakota, charging 1.5% of purchase price for agricultural drones and 2% for all other drones. The collected fees fund a new "drone aviation fund" administered by the Board of Technical Education to support drone training grants at state technical colleges. This bill directly affects drone owners (especially agricultural users) by changing their registration tax rates and creating a dedicated funding source for drone industry workforce development. The fund will receive all drone registration fees and interest, with expenditures requiring annual budget approval. The bill does not apply to small unmanned aircraft systems covered under federal regulations.
SB 218 establishes a legal framework for charter schools in South Dakota. It defines charter schools as public schools operating under contracts with school districts or the state education department, granting them exemptions from most state education laws while requiring compliance with civil rights, health/safety rules, and standardized testing. The bill mandates annual performance reporting to the state, outlines application requirements for nonprofit organizers (including community support and financial plans), and specifies that charter schools must serve grades K-12 nonsectarianly without religious instruction. This directly affects school districts (as authorizing entities), nonprofit organizers seeking to open charter schools, and students enrolled in these schools.
Senate Bill 97 adjusts property tax revenue limits for South Dakota taxing districts and school districts. For school districts, it changes the annual revenue increase cap from "lesser of 3% or index factor" to a flat 3% over the prior year's revenue, effective 2021. For general taxing districts, it adds a specific 3.5% cap on revenue increases above normal limits for taxes payable in 2027-2031. The bill also clarifies that property improvements to owner-occupied homes increasing value by 40% or less do not count toward the revenue limit. These changes directly affect local governments and school districts managing property tax revenue.
SB 84 increases the income threshold for students to qualify for South Dakota's Partners in Education scholarship program. It raises the initial income requirement from 152% to a higher percentage of the national free/reduced-price lunch income standard (currently 152% for initial eligibility), directly affecting low-income students seeking tuition assistance at participating nonpublic schools. The bill maintains that students who qualify initially remain eligible for three years or until high school graduation without income checks, but must later meet a 250% income threshold to renew. This change expands access to the scholarship program by allowing more households to qualify under the new higher income cap.
