FOR AN ACT ENTITLED, An Act to  exempt certain school districts from certain reductions in state aid to education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  For the purposes of this Act a reorganized school district is a school district that has reorganized under the provisions of chapter 13-6, exclusive of minor boundary changes.
     Section  2.  That § 13-13-73.2 be amended to read as follows:
     13-13-73.2.   A school district's state aid for general education as calculated pursuant to §   13-13-73 shall be reduced by the following calculation:

             (1)      Subtract the allowable general fund balance from the general fund balance. If the result is less than zero, (1) equals zero;

             (2)      Determine the lower of the general fund base percentage or the general fund balance percentage;

             (3)      Subtract twenty percent (0.2) from the result of (2). If the result is less than zero, (3) equals zero;

             (4)      Multiply the result of (3) by the district's general fund expenditures in the previous

school fiscal year;

             (5)      Multiply the result of (4) by the imputed interest rate;

             (6)      Add the result of (1) and the result of (5).

     This section does not apply to a school district that has reorganized for a period of four years after the reorganization.
     Section  3.  The Department of Education and Cultural Affairs may promulgate rules pursuant to chapter 1-16 to define a reorganization resulting from a minor boundary change.