This bill amends existing laws regarding the issuance of capital outlay certificates by school districts in South Dakota. It specifies that the school board must conduct a public hearing before entering into any installment purchase contracts or lease-purchase agreements that exceed fifty thousand dollars. Following the hearing, the board is required to refer the matter to the voters of the district for approval. Additionally, the bill mandates that capital outlay certificates can only be issued if approved by the voters, and it establishes that these certificates must be authorized, issued, and sold in accordance with specific provisions.

Furthermore, the bill outlines the process for a referendum if five percent of registered voters petition for it within twenty days of the board's decision. It stipulates that a special election must be held on designated Tuesdays, and if the election coincides with a primary or general election, the costs will be shared between the school district and county commissioners. The bill also requires that an affirmative vote of at least sixty percent is necessary for the approval of the issuance of capital outlay certificates. If the voters do not approve the question, the school board may resubmit it at the next available election.

Statutes affected:
Introduced, 02/04/2026: 13-16-6.2, 13-16-6.3, 13-16-6.4