Printer FriendlyHB 1230 establish the large project development fund, to provide for i...
ENTITLED, An Act to establish the large project development fund, to provide for its
administration, and to make an appropriation therefor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 1-16G-1.2 be amended to read as follows:
1-16G-1.2. The Board of Economic Development may take title by foreclosure to any property
given as security if the acquisition is necessary to protect any economic development grant or loan
or any large project development grant made pursuant to the provisions of this chapter, and may sell,
transfer, or convey any such property to any responsible buyer. Any sale of property pursuant to the
provisions of this chapter shall be performed in a commercially reasonable manner. If the sale,
transfer, or conveyance cannot be effected with reasonable promptness, the board may, in order to
prevent financial loss and sustain employment, lease the property to a responsible tenant or tenants.
All sale proceeds or lease payments received by the board pursuant to this section shall be
deposited in the fund from which the original grant or loan was made.
Section 2. That § 1-16G-8 be amended to read as follows:
1-16G-8. The Board of Economic Development shall promulgate rules pursuant to chapter 1-26
concerning the following:
(1) The existing barriers to economic growth and development in the state;
(2) Developing investment in research and development in high technology industries;
(3) The submission of business plans prior to the approval of economic development grants
or loans or large project development grants. Business plans shall include the products or
services to be offered by the applicant, job descriptions with attendant salary or wage
information by job category, educational requirements by job category, methods of
accounting, financing other than that provided by the economic development grant or loan
or a large project development grant, and marketing, sales, merchandising, and other
disciplines proposed to be used for business growth and expansion;
(4) The cooperation between agencies of state government and applicant businesses for
nonfinancial services including loan packaging, marketing assistance, research assistance,
and assistance with finding solutions for complying with environmental, energy, health,
safety, and other federal, state, and local laws and regulations;
(5) Regular performance monitoring and reporting systems for participating businesses to
assure compliance with their business plans, terms of repayment of an economic
development loan and compliance with terms of an economic development grant or a
large project development grant;
(6) Establish eligibility criteria for grants and loans;
(7) Establish application procedures for grants and loans, including a requirement that grant
and loan applications be signed under penalty of perjury;
(8) Establish criteria to determine which applicants will receive grants or loans;
(9) Govern the use of proceeds of grants and loans;
(10) Establish criteria for the terms and conditions upon which loans shall be made, including
matching requirements, interest rates, repayment terms, and the terms of security given
to secure such loans;
(11) Establish criteria for the terms and conditions upon which grants shall be made, including
permitted uses, performance criteria, and matching requirements; and
(12) Establish criteria for the terms and conditions upon which grants shall be repaid for
noncompliance with the terms and conditions upon which the grant was made.
Section 3. That § 1-16G-16.1 be amended to read as follows:
1-16G-16.1. The Board of Economic Development may use the revolving economic development
and initiative fund for the purpose of paying taxes and liens and for the procuring of legal services
and other services necessary to protect, recover, maintain, and liquidate the assets of the revolving
economic development and initiative fund and the large project development fund. Such costs may
be incurred and paid up to ten percent of the loan or grant balance with a majority vote of the board
of economic development. Costs in excess of ten percent shall be approved by a two-thirds vote of
the board. Such services are not subject to state bid laws so long as such services are procured in a
commercially acceptable manner.
Section 4. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
Terms used in this Act Mean:
(1) "Large project," a project with a total project cost exceeding five million dollars; and
(2) "Project cost," the amount paid in money, credits, property, or other money's worth for a
Section 5. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
For the purposes of this Act, the term, project, means a new building or structure or the
expansion of an existing building or structure, the construction of which is subject to the contractor's
excise tax imposed by chapters 10-46A or 10-46B. A project includes laboratory and testing
facilities, manufacturing facilities, power generation facilities, power transmission facilities,
agricultural processing facilities, and wind energy facilities. A project does not include any building
(1) Used predominantly for the sale of products at retail, other than the sale of electricity at
retail, to individual consumers;
(2) Used predominantly for residential housing or transient lodging;
(3) Used predominantly to provide health care services;
(4) Constructed for raising or feeding of livestock; or
(5) That is not subject to ad valorem real property taxation or equivalent taxes measured by
Section 6. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
There is established in the state treasury a fund to be known as the large project development
fund for the purpose of making grants for large project development.
Section 7. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
The Board of Economic Development may make grants from the large project development fund
for the purpose of promoting large project development in South Dakota.
Section 8. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
All money in the fund is hereby appropriated for the purpose of making grants as provided in this
Act. Any repayment of grants from the large project development fund and any interest thereon shall
be receipted into the large project development fund.
Section 9. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
The Board of Economic Development may accept and expend for the purposes of sections 6 and
7 of this Act, inclusive, any funds obtained from federal sources, gifts, contributions, or any source
if such acceptance and expenditure is approved in accordance with § 4-8B-10.
Section 10. That chapter 1-16G be amended by adding thereto a NEW SECTION to read as
There is hereby continuously appropriated to the large project development fund the amount of
twenty-two percent of all deposits into the general fund of the contractors' excise tax imposed by
chapter 10-46A and the alternate contractors' excise tax imposed by chapter 10-46B. Transfers from
the general fund to the large project development fund pursuant to this provision shall be made on
a monthly basis by the Bureau of Finance and Management.
Section 11. The provisions of section 10 of this Act are effective on January 1, 2013.
An Act to establish the large project development fund, to provide for its administration, and to
make an appropriation therefor.
I certify that the attached Act
originated in the
HOUSE as Bill No. 1230
Speaker of the House
President of the Senate
Secretary of the Senate
House Bill No. 1230
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State