SB 229 South Dakota Senate · 2026 Regular Session

require an election to approve the issuance of certain capital outlay certificates, lease-purchase contracts, or installment purchase contracts.

SB 229 requires South Dakota school districts to hold a voter election before issuing certain financing tools, including capital outlay certificates, lease-purchase contracts, or installment purchase contracts that would obligate the district for future payments exceeding $50,000 or 1.5% of the district’s taxable property valuation. The bill mandates a public hearing and referral to voters for approval, with the election requiring at least 60% "yes" votes. School boards must schedule these elections on specific dates (March, June, or November) and cover associated costs, unless combined with regular elections. This directly affects school districts managing large-scale facility or equipment financing.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 4, 2026 Last action Feb 23, 2026

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What changed between versions

Introduced → Senate Education Engrossed · 5 edits · Feb 19, 2026

MODERATE

This bill amends South Dakota statutes governing school district capital outlay certificates, lease-purchase contracts, and installment purchase agreements. The changes clarify when elections are required for voter approval, establish new thresholds for mandatory public hearings and voter referendums, and specify election timing requirements. These modifications aim to increase transparency and community involvement in school district financial decisions regarding long-term debt.

Scope change

The bill applies to all school districts in South Dakota when they seek to issue capital outlay certificates, lease-purchase contracts, or installment purchase contracts that meet certain financial thresholds or maturity date requirements.

REQUIREMENT

Added a new requirement that any proposed installment purchase contract, lease-purchase, or capital outlay certificate obligating the district to future payments exceeding 1.5% of taxable property valuation must undergo a public hearing before board approval.

Established that contracts with maturity dates exceeding ten years must be referred to voters for approval, regardless of the 1.5% valuation threshold.

Added a provision allowing five percent of registered voters to petition for a referendum on capital outlay certificate approval, requiring a 60% affirmative vote threshold for passage.

TIMELINE

Specified that special elections for bond questions must be held on the first Tuesday after the first Monday in March, June, or November, with combined elections sharing costs between school districts and county commissioners.

ENFORCEMENT

Clarified that if a bond election is not approved, the school board may place the question on the ballot at the next available election provided by the section.

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 23, 2026

Upper · Passed

Senate Do Pass Amended , Passed, YEAS 16, NAYS 18 S.J. 362

upper

Feb 19, 2026

Upper · Passed

Education Do Pass Amended , Passed, YEAS 4, NAYS 3

upper

Feb 19, 2026

Introduced

Education Motion to amend , Passed, Amendment 229A

upper

Feb 4, 2026

Introduced

First read in Senate and referred to Senate Education S.J. 179

upper

1 primary · 0 co-sponsors