ENTITLED, An Act to  allow for certain warranties to be purchased out of a school district's capital outlay fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That § 13-16-6 be amended to read as follows:
     13-16-6.   The capital outlay fund of the school district is a fund provided by law to meet expenditures which result in the acquisition or lease of or additions to real property, plant, or equipment. Such an expenditure shall be for land, existing facilities, improvement of grounds, construction of facilities, additions to facilities, remodeling of facilities, or for the purchase or lease of equipment. It may also be used for installment or lease-purchase payments for the purchase of real property, plant or equipment, which have a contracted terminal date not exceeding twenty years from the date of the installment contract or lease-purchase and for the payment of the principal of and interest on capital outlay certificates issued pursuant to §  13-16-6.2.

     Any purchase of one thousand dollars or less may be paid out of the general fund. The total accumulated unpaid principal balances of such installment contracts and lease-purchase and the outstanding principal amounts of such capital outlay certificates may not exceed three percent of the taxable valuation. The school district shall provide a sufficient levy each year under the provisions of §  13-16-7 to meet the annual installment contract, lease-purchase and capital outlay certificate payments, including interest.

     A school district which contracts its student transportation may expend from the capital outlay fund an amount not to exceed fifteen percent of the contract amount.

     The capital outlay fund may be used to purchase textbooks and instructional software.
    The capital outlay fund may be used to purchase warranties on capital assets if the warranties do not include supplies.

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An Act to allow for certain warranties to be purchased out of a school district's capital outlay fund.

========================= I certify that the attached Act originated in the HOUSE as Bill No. 1100

____________________________
Chief Clerk

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____________________________
Speaker of the House

Attest:

____________________________
Chief Clerk

____________________________
President of the Senate

Attest:

____________________________
Secretary of the Senate

House Bill No. 1100
File No. ____
Chapter No. ______     =========================
Received at this Executive Office this _____ day of _____________ ,

20____ at ____________ M.

By _________________________
for the Governor

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The attached Act is hereby approved this ________ day of ______________ , A.D., 20___

____________________________
Governor

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STATE OF SOUTH DAKOTA,

ss.

Office of the Secretary of State

Filed ____________ , 20___
at _________ o'clock __ M.

____________________________
Secretary of State

By _________________________
Asst. Secretary of State