CHAPTER 13-39A
SOUTH DAKOTA BOARD OF TECHNICAL EDUCATION
13-39A-1 Definitions.
13-39A-2 South Dakota Board of Technical Education--Creation.
13-39A-3 Political party membership.
13-39A-4 Member terms--Limits.
13-39A-5 Vacancies.
13-39A-6 President--Meetings.
13-39A-7 Majority vote required--Minutes.
13-39A-8 Member compensation and expenses.
13-39A-9 Board members--No technical college employees.
13-39A-10 Executive director.
13-39A-11 Local governing bodies--Retain powers not given to board.
13-39A-12 Tuition and fees.
13-39A-13 Annual state funding requests.
13-39A-14 Management policies, goals, and objectives.
13-39A-15 New construction or major renovation of facilities.
13-39A-16 Additional duties of board.
13-39A-17 Accreditations.
13-39A-18 Promulgation of rules.
13-39A-19 Successor to Board of Education Standards on agreements.
13-39A-20 Performance of agreements.
13-39A-21 Apportionment and distribution of funds to LEAs.
13-39A-22 Distribution of funds to technical colleges.
13-39A-23 Separate accounting and funds by LEAs.
13-39A-24 Lease-purchase agreements between LEAs and health and educational facilities authority or board for capital improvements.
13-39A-25 Provisions of lease-purchase agreements.
13-39A-26 Security for payments by LEA or board under lease-purchase agreements.
13-39A-27 Technical colleges facilities fund.
13-39A-28 Tuition subaccount.
13-39A-29 Technical college equipment fund.
13-39A-30 Payment of obligations under lease-purchase agreement.
13-39A-31 Petition to establish technical college.
13-39A-32 Recommendation of petition to Legislature.
13-39A-33 Legislative approval of petition.
13-39A-34 Joint resolution specifying duties and powers of postsecondary technical institute.
13-39A-35 Petition to establish technical college as distinct separate LEA.
13-39A-36 Board governing distinct separate LEA.
13-39A-37 Terms of board members.
13-39A-38 Appointment of members.
13-39A-39 Continuing contract and collective bargaining provisions not applicable--Notice of nonrenewal.
13-39A-40 Confidentiality of student information.
13-39A-41 Administrative rules not affected.
13-39A-42 State support of four technical colleges.
13-39A-1. Definitions.
Terms used in this chapter, mean:
(1) "Board," the South Dakota Board of Technical Education;
(2) "Department," the Department of Education;
(3) "Executive director," the executive director of the board;
(4) "Facilities," buildings, rooms, property, and permanent equipment, including vehicles, used to provide technical education;
(5) "LEA," a local education agency limited to public school districts, the legal entities that a school district is authorized to establish or a distinct separate LEA established pursuant to § 13-39A-35;
(6) "Technical college," a public nonprofit school legally authorized to provide career and technical Associate of Applied Science degrees and certificates or their successor equivalents and that are funded wholly or in part by the state as referenced in § 13-39A-42; and
(7) "Secretary," the secretary of the Department of Education.
Source: SL 2017, ch 81, § 1; SL 2020, ch 61, § 1.
13-39A-2. South Dakota Board of Technical Education--Creation.
There is hereby created the South Dakota Board of Technical Education. The oversight of the technical college system is vested in the board. The board shall consist of nine members. Four members shall be selected by the Governor from persons recommended by each of the technical colleges. Each of the four technical colleges shall submit to the Governor a list of not fewer than four persons, from which the Governor shall select one person. Each list shall be submitted no fewer than thirty days before the appointment is to be made. The Governor may reject the entire list and require a technical college to submit a new list. The Governor shall appoint the remaining board members to represent different geographic regions of the state and to reflect the industries that rely upon the technical colleges to provide a skilled workforce. All members shall be appointed with the advice and consent of the Senate.
Source: SL 2017, ch 81, § 2; SL 2020, ch 61, § 2.
13-39A-3. Political party membership.
No more than six members of the board may be members of the same political party.
Source: SL 2017, ch 81, § 3.
13-39A-4. Member terms--Limits.
Each member shall serve a three-year term that expires on the last day of October. No member may serve more than three consecutive terms.
Source: SL 2017, ch 81, § 4; SL 2023, ch 59, § 1.
13-39A-5. Vacancies.
If a vacancy occurs as provided in § 3-4-1, the Governor shall, by appointment, fill the vacancy, and the appointee shall serve for the balance of the unexpired term. Any vacancy shall be filled in the same manner the vacating member was selected. This partial term does not count as a term for the term limit provided in § 13-39A-4. However, if the Senate, at the next legislative session, fails to confirm the appointee, the appointee may only serve until the last day of March. The Governor shall name a new appointee after that date. The subsequent appointee is subject to the same conditions as set forth in this section.
Source: SL 2017, ch 81, § 5.
13-39A-6. President--Meetings.
The board shall elect a president from the board's members. The president's term of office is two years. Meetings may be held at the call of the president, the executive director, or by joint request of a majority of the members if reasonable notice is given.
Source: SL 2017, ch 81, § 6.
13-39A-7. Majority vote required--Minutes.
The affirmative vote of a majority of the members of the board is required to take any official action. The board shall record minutes. The minutes are open to the public. All meetings of the board are subject to the provisions of chapter 1-25.
Source: SL 2017, ch 81, § 7.
13-39A-8. Member compensation and expenses.
Each member of the board shall be paid per diem compensation and allowable expenses for the member's service on the board pursuant to § 4-7-10.4.
Source: SL 2017, ch 81, § 8.
13-39A-9. Board members--No technical college employees.
No employee of a technical college may be a member of the board.
Source: SL 2017, ch 81, § 9; SL 2020, ch 61, § 3.
13-39A-10. Executive director.
The board may select and employ an executive director. The board shall provide overall policy guidance to the executive director. The board may delegate to the executive director the authority to hire and fire board employees.
Source: SL 2017, ch 81, § 10.
13-39A-11. Local governing bodies--Retain powers not given to board.
The local governing body of each technical college shall retain all powers not expressly given to the board.
Source: SL 2017, ch 81, § 11; SL 2020, ch 61, § 4.
13-39A-12. Tuition and fees.
The board shall approve rates of tuition and state fees for the technical colleges. Tuition and fees may vary by course and college.
Source: SL 2017, ch 81, § 12; SL 2020, ch 61, § 5.
13-39A-13. Annual state funding requests.
The board shall review and approve recommendations for annual state funding requests for the technical colleges and make recommendations to the Governor and the Legislature.
Source: SL 2017, ch 81, § 13; SL 2020, ch 61, § 6.
13-39A-14. Management policies, goals, and objectives.
The board shall, with the input of the local governing boards of each of the technical colleges, provide overall policies, goals, and objectives for the management of the technical college system to ensure that the needs of the public, business, and industry are met to the highest possible degree and in the most cost-effective and efficient manner.
Source: SL 2017, ch 81, § 14; SL 2020, ch 61, § 7.
13-39A-15. New construction or major renovation of facilities.
Except as otherwise provided in § 1-16A-95, the board shall consider and act upon technical college requests for new construction or major renovation of facilities also subject to the provisions of § 1-16A-95. However, the absence of any action does not prevent the Legislature from approving such plans pursuant to § 1-16A-95.
Source: SL 2017, ch 81, § 15; SL 2020, ch 61, § 8.
13-39A-16. Additional duties of board.
The board shall consider and act upon the following:
(1) Recommendations regarding legislation proposed for technical education;
(2) All actions required by law to be taken by the board;
(3) Establishment of committees related to the statewide mission of the technical college system; and
(4) New degree or certificate granting or awarding programs at any technical college.
Source: SL 2017, ch 81, § 16; SL 2020, ch 61, § 9.
13-39A-17. Accreditations.
The board shall monitor and support institutional and program accreditation, compliance with the accreditation standards of the Higher Learning Commission, and other approved industry accreditations.
Source: SL 2017, ch 81, § 17.
13-39A-18. Promulgation of rules.
The board may promulgate rules, pursuant to chapter 1-26, to provide oversight for the operation and maintenance of the technical college system that affords people of the state, insofar as practicable, an equal opportunity to acquire a public technical education. The rules may provide for the following:
(1) Program requirements for degrees and certificate awards;
(2) Apportionment and distribution of funds made available to the board for carrying out the purposes of this chapter;
(3) General administrative matters;
(4) The submission to the board of the annual budget by each technical college. The board shall determine the contents of the annual budget and shall provide that failure to comply with the rules may result in withholding of payments from federal and state funds;
(5) The submission of plans of LEAs for new construction or major renovation of facilities eligible for reimbursement. The rules regarding these plans shall include a requirement that the LEA, by a written resolution, declare the LEA committed to begin construction if the budget of the board provides the matching funds;
(6) The promotion and coordination of career and technical education consistent with the purpose set forth in § 13-39A-42; and
(7) The prevention of unwarranted duplication of programs.
Source: SL 2017, ch 81, § 18; SL 2020, ch 61, § 10.
13-39A-19. Successor to Board of Education Standards on agreements.
The board shall be the lawful successor to the Board of Education Standards with respect to all rights, privileges, obligations and duties of the Board of Education Standards under and with respect to:
(1) The lease purchase agreement dated as of August 1, 1988, between the health and educational facilities authority and the Board of Education Standards, as heretofore amended or supplemented;
(2) The four sublease agreements dated as of August 1, 1988, between the Board of Education Standards and, respectively, Mitchell School District 17-2, Rapid City Area School District No. 51-4, Sioux Falls School District 49-5, and Watertown School District No. 14-4, each as heretofore amended or supplemented;
(3) The first supplement to general pledge and escrow agreement between the treasurer, the Board of Education Standards, the health and educational facilities authority and the First National Bank in Sioux Falls, dated as of August 1, 1988, as amended and supplemented;
(4) The fourth supplement to facility fee tuition collection and deposit agreement dated June 1, 1999, among the treasurer, the Board of Education Standards, the First National Bank in Sioux Falls and the school districts specified in subsection (2) or their successors, as the agreement has been heretofore amended or supplemented from time to time; and
(5) All other agreements related to the foregoing and with respect to career and technical education program revenue bonds issued from time to time by the health and educational facilities authority to finance property used by LEAs for any technical college.
The board shall succeed to and assume all the obligations of the Board of Education Standards with respect to all the agreements and is bound by all of the obligations and covenants of the Board of Education Standards in connection therewith, which obligations and covenants are ratified and confirmed.
Source: SL 2017, ch 81, § 19; SL 2020, ch 61, § 11.
13-39A-20. Performance of agreements.
The board may enter into and perform the agreements described in § 13-39A-19. All bonds, notes or other evidences of indebtedness issued by the South Dakota Health and Educational Facilities Authority to finance facilities for use as technical college facilities and outstanding on July 1, 2017 are unaffected by the transfer of functions from the Board of Education Standards to the board. No contract with respect to the bonds is impaired by chapter 81 of the 2017 Session Laws.
Source: SL 2017, ch 81, § 20; SL 2020, ch 61, § 12.
13-39A-21. Apportionment and distribution of funds to LEAs.
The secretary shall apportion and distribute funds made available for technical colleges through a formula approved by the board to the LEAs having jurisdiction over technical colleges to assist in maintaining and operating those schools. The use of the funds is subject to rules promulgated by the board pursuant to § 13-39A-18 and in accordance with the approved state plan for career and technical education. However, the formula approved by the board may not reduce or increase the apportionment and distribution to any technical college as a result of any municipal, county, or LEA financial support.
Source: SL 2017, ch 81, § 21; SL 2020, ch 61, § 13.
13-39A-22. Distribution of funds to technical colleges.
The department shall distribute funds to the technical colleges under the provisions of § 13-39A-21 from money appropriated to the department for that purpose, and from federal funds allotted to the State of South Dakota for that purpose.
Source: SL 2017, ch 81, § 22; SL 2020, ch 61, § 14.
13-39A-23. Separate accounting and funds by LEAs.
Any LEA operating a technical college shall keep separate the accounting and funds for the operation of the technical college programs. The LEA shall deposit receipts, student fees, and income from state and federal sources, as well as any other receipts incidental to the operation of the technical college, in any fund created pursuant to this chapter.
Source: SL 2017, ch 81, § 23; SL 2020, ch 61, § 15.
13-39A-24. Lease-purchase agreements between LEAs and health and educational facilities authority or board for capital improvements.
Any LEA may enter into a lease-purchase agreement with the health and educational facilities authority or the board for capital improvements for the design, acquisition, construction, equipping, or improvement of facilities the LEA considers necessary or appropriate. In addition, the board may enter into any lease-purchase agreement for the capital improvements either with an LEA or the health and educational facilities authority.
Any lease-purchase agreement shall include any terms the health and educational facilities authority considers necessary, including without limitation, terms of default, remedies, representations, and covenants of the lessee.
No lease-purchase agreement entered into after July 1, 2017 may be effective until approved by the board. The term, lease-purchase agreement, as used in this chapter includes any sublease.
Source: SL 2017, ch 81, § 24.
13-39A-25. Provisions of lease-purchase agreements.
A lease-purchase agreement authorized pursuant to § 13-39A-24:
(1) Shall be approved by the governing body of the LEA;
(2) May provide for the simultaneous conveyance of existing facilities to be leased back with the improvements and other property being financed;
(3) May provide for all rights, title, and interest of the authority to be conveyed to the LEA or to the board upon payment or other discharge of the bonds issued therefor; and
(4) May contain any other provision the authority and the board determine is necessary or appropriate to secure payment of amounts due under any agreement. No other provision of law may limit or otherwise restrict the power and authority of an LEA or the board to enter into a lease-purchase agreement or govern the procedure by which an agreement is authorized.
Source: SL 2017, ch 81, § 25; SL 2018, ch 102, § 1.
13-39A-26. Security for payments by LEA or board under lease-purchase agreements.
The board may contract with or enter into other agreements with the South Dakota Health and Educational Facilities Authority, any LEA, the state treasurer, or others in order to pledge or otherwise transfer all or any portion of tuition and other student fees subject to deposit in the tuition subaccount in order to secure payments by any LEA or the board under a lease-purchase agreement with the authority. A contract or other agreement may also provide for the release from pledge and lien of any amounts determined to be unnecessary for payment of amounts currently owed under any lease-purchase agreement. Any pledge of tuition and other student fees are valid and binding from the time the pledge is made. The amount of tuition and other fees pledged and thereafter received shall immediately be subject to the lien of pledge without any physical delivery thereof or further act. The lien of the pledge is valid and binding against the LEA and any other person having any claim of any kind in tort, contract, or otherwise against the LEA, the board, the authority, the state treasurer, or any other person, irrespective of whether the person has notice of the claim. Neither the contract nor any other agreement or instrument creating a pledge needs to be recorded.
Source: SL 2017, ch 81, § 26.
13-39A-27. Technical colleges facilities fund.
There is hereby created within the state treasury a trust fund on behalf of the board known as the technical colleges facilities fund. The fund shall consist of any appropriation by the Legislature specifically designated for deposit in the fund and any other moneys designated for deposit in the fund, including any investment earnings. The state treasurer may create subfunds or accounts within the trust fund created in this section as the treasurer considers necessary. Any investment earnings in the fund may be transferred annually by the state treasurer to the tuition subaccount established in § 13-39A-28.
Source: SL 2017, ch 81, § 27; SL 2020, ch 61, § 16.
13-39A-28. Tuition subaccount.
There is hereby created within the technical colleges facilities fund a tuition subaccount. The board may determine and require that all or any portion of the tuition and other student fees payable to an LEA shall be deposited in the subaccount. No moneys may be disbursed from the tuition subaccount for any purpose other than to pay lease rentals or other amounts owed in connection with:
(1) Any facility originally leased to the Board of Regents but now utilized for career and technical education if the facility is on the campus of a technical college; and
(2) Any lease-purchase agreement authorized in §§ 13-39A-24 and 13-39A-25 unless the South Dakota Health and Educational Facilities Authority files with the state treasurer a certification that it has on deposit or there has otherwise been appropriated sufficient moneys to pay all amounts due or to become due within the next three months on all the lease-purchase agreements.
No lease rentals on facilities described in subdivision (1) may be paid unless the board has approved the assumption of the former Board of Regents' lease obligations by the tuition subaccount. Thereafter, the state treasurer shall retain in the technical colleges facilities fund for future repair and improvement an amount not to exceed ten percent of the fund, as the board directs.
Source: SL 2017, ch 81, § 28; SL 2020, ch 61, § 17.
13-39A-29. Technical college equipment fund.
There is established a technical college equipment fund. Any money in the technical college equipment fund is continuously appropriated to the board for distribution as provided in this section. The board shall distribute the money to the technical colleges to purchase equipment. Any equipment purchase shall be based upon priorities established by each technical college, approved by each technical college's governing body, and approved by the board.
Source: SL 2017, ch 81, § 29; SL 2020, ch 61, § 18.
13-39A-30. Payment of obligations under lease-purchase agreement.
All or any portion of the lease-purchase obligations under or in connection with any lease-purchase agreement authorized in §§ 13-39A-24 and 13-39A-25 may be paid or discharged out of moneys available from the investment earnings on the technical colleges trust fund or from any amounts on deposit in the tuition subaccount of the fund upon the determination by the board to pledge or otherwise transfer any amounts to the South Dakota Health and Educational Facilities Authority.
Source: SL 2017, ch 81, § 30; SL 2020, ch 61, § 19.
13-39A-31. Petition to establish technical college.
Any LEA proposing to establish a technical college after July 1, 2015, may petition the board pursuant to §§ 13-39A-32 to 13-39A-34, inclusive. The board may conduct hearings, investigate school records, and secure other data relating to the proposed technical college, the college's geographical location, the demography and economy of the area, and any other facts relating to the proposed technical college that the board may consider appropriate. This section does not apply to a distinct separate LEA established pursuant to § 13-39A-35.
Source: SL 2017, ch 81, § 31; SL 2020, ch 61, § 20.
13-39A-32. Recommendation of petition to Legislature.
If the board finds that the classification petitioned for would further the educational interests of the state, more nearly equalize the educational opportunities in certain phases of technical education to persons in this state who are of the age and maturity to pursue study in preparation for entering the labor market, be of potential benefit to persons in all communities of the state, and is otherwise in accordance with the plans of the board, the board may recommend that the Legislature approve the petition.
Source: SL 2017, ch 81, § 32.
13-39A-33. Legislative approval of petition.
If the Legislature approves the petition by passing a joint resolution, an LEA may operate a technical college. If an LEA begins to operate a technical college without the approval required by this section, that institute is ineligible for state career and technical education money.
Source: SL 2017, ch 81, § 33; SL 2020, ch 61, § 21.
13-39A-34. Joint resolution specifying duties and powers of postsecondary technical institute.
The joint resolution passed pursuant to § 13-39A-33 shall specify the duties and powers of a postsecondary technical institute. The resolution may also specify the procedure for selecting members of the governing board, which may include local elections for the members. An institute established pursuant to § 13-39A-33 may be a distinct legal entity separate and apart from the school district or districts which established it.
Source: SL 2017, ch 81, § 34.
13-39A-35. Petition to establish technical college as distinct separate LEA.
Any technical college, school district LEA or school districts, or any combination of them that established a technical college before July 1, 2015, may file a petition with the board to establish the technical college as a distinct separate LEA, which shall be an LEA and a public body under chapter 1-16A. The board shall approve the petition before the technical college may operate as a distinct separate LEA. Upon establishment of a distinct separate LEA, the school district LEA shall assign to, and the newly established distinct separate LEA shall expressly assume, all duties and powers and all rights, covenants, and obligations concerning the technical college, including without limitation all rights, covenants and obligations of the school district in connection with any lease purchase agreement or sublease authorized pursuant to §§ 13-39A-24 to 13-39A-30, inclusive, and any and all instruments and other agreements related thereto. Nothing in this section prohibits an agreement between the school district LEA and the distinct separate LEA pursuant to chapter 1-24. The distinct separate LEA established pursuant to this section is not subject to §§ 13-39A-31 to 13-39A-34, inclusive.
Source: SL 2017, ch 81, § 35; SL 2020, ch 61, § 22.
13-39A-36. Board governing distinct separate LEA.
A board consisting of nine members shall govern the distinct separate LEA established pursuant to § 13-39A-35.
Source: SL 2017, ch 81, § 36.
13-39A-37. Terms of board members.
No board member may serve more than three consecutive terms on the distinct separate LEA board as provided in § 13-39A-36. Three board members shall serve an initial one-year term. Three board members shall serve an initial two-year term. Three board members shall serve an initial three-year term. Any subsequent board member term shall be for a period of three years. The board of the school district LEA referenced in § 13-39A-35 shall appoint all the initial board members.
Source: SL 2017, ch 81, § 37.
13-39A-38. Appointment of members.
After a member's initial term on the board of the distinct separate LEA is complete, the board of the school district LEA, with input from trade and industry representatives in the region and the technical college president, shall continue to appoint the three board member positions whose initial terms were three years. After the distinct separate LEA board member's initial term is finished, the Governor shall appoint the three board members of the board whose initial terms were one year. After the distinct separate LEA board member's initial term is finished, the nine person distinct separate LEA board, with input from trade and industry representatives in the region and the technical college president, shall appoint the three board members of the board whose initial terms were two years.
Source: SL 2017, ch 81, § 38; SL 2020, ch 61, § 23.
13-39A-39. Continuing contract and collective bargaining provisions not applicable--Notice of nonrenewal.
The continuing contract provisions set forth in chapter 13-43 and the collective bargaining provisions set forth in chapters 3-18 and 60-9A do not apply to any person performing work for a technical college. However, the governing board shall give at least sixty days written notice of the intent to nonrenew a year-to-year contract with a contracted employee in a technical college.
Source: SL 2017, ch 80, § 1; SL 2017, ch 81, § 39; SL 2020, ch 61, § 24.
13-39A-40. Confidentiality of student information.
Each technical college shall treat all information disclosed pursuant to § 13-28-50 as confidential and subject to the same restrictions that apply to personally identifiable information involving any student enrolled in a technical college.
Source: SL 2017, ch 81, § 40; SL 2020, ch 61, § 25.
13-39A-41. Administrative rules not affected.
Nothing in this chapter or chapter 13-39 may be construed as withdrawing statutory authority for any administrative rule of the South Dakota Board of Education Standards in effect on June 30, 2017, governing the operation of the technical colleges.
Source: SL 2017, ch 81, § 54; SL 2020, ch 61, § 26.
13-39A-42. State support of four technical colleges.
The state shall support four technical colleges:
(1) Lake Area Technical College in Watertown, Codington County;
(2) Mitchell Technical College in Mitchell, Davison County;
(3) Southeast Technical College in Sioux Falls, Minnehaha County; and
(4) Western Dakota Technical College in Rapid City, Pennington County.
The purpose of Lake Area Technical College, Mitchell Technical College, Southeast Technical College, and Western Dakota Technical College is to deliver postsecondary career and technical education through the delivery of programs that result in the award of an Associate of Applied Science degree or certificate and the direct entry of graduates into skilled occupations.
Source: SL 2017, ch 81, § 55; SL 2020, ch 61, § 27.
