This bill amends existing laws regarding the issuance of capital outlay certificates, lease-purchase contracts, and installment purchase contracts by school districts in South Dakota. It establishes that any proposed contract or issuance that obligates the district for future payments exceeding one and one-half percent of the taxable valuation must undergo a public hearing, with prior notice published in the official newspaper. Additionally, if the proposed obligations have a maturity date exceeding ten years, the school board must refer the matter to the voters for approval.

Furthermore, the bill stipulates that approval for entering into agreements or issuing capital outlay certificates is subject to a referendum if five percent of registered voters petition for it. A special election must be held on specified dates, and the school board can only issue certificates with a maturity date exceeding ten years if approved by at least sixty percent of voters. If the proposal is not approved, the school board may resubmit the question at the next available election.

Statutes affected:
Introduced, 02/04/2026: 13-16-6.2, 13-16-6.3, 13-16-6.4
Senate Education Engrossed, 02/19/2026: 13-16-6.2, 13-16-6.3, 13-16-6.4