AN ACT

        ENTITLED, An Act to  establish a State Board of Technical Institutes, to provide for its powers, duties, and responsibilities, and to provide for the transfer of authority over public postsecondary technical education from the Department of Education to the State Board of Technical Institutes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  The control of the public technical institutes of the state is vested in a board of nine members, designated as the State Board of Technical Institutes. The state board shall consist of two at-large members appointed by the Governor; one member of the Board of Regents appointed by the Governor; one regional board member from Lake Area Technical Institute; one regional board member from Mitchell Technical Institute; one regional board member from Southeast Technical Institute; one regional board member from Western Dakota Technical Institute; the secretary of the Department of Labor; and the secretary of the Department of Tourism and State Development. If a regional board for a particular institute has not yet been established, the sponsoring school district may appoint a member to the State Board of Technical Institutes until such time as a regional board for that institute has been established.
     Section  2.  All appointed members shall serve three-year terms. No appointed member may serve more than three consecutive terms. The regional representatives to the state board shall be selected and appointed by the regional boards. The four regional board members shall be appointed by the appropriate regional board, and each regional appointed member shall be a current member of that institute's regional board of directors at the time of the member's initial appointment to the state board. No member of this board may be a member of the South Dakota Board of Education.
     Section  3.  If a vacancy occurs as provided in §  3-4-1, the original appointing authority shall fill such vacancy, subject to the same conditions as set forth in the original appointment. The appointee shall serve for the balance of the unexpired term.
     Section  4.  Meetings may be held on the call of the president or by the joint request of a majority of the members. In either case, due and reasonable notice shall be given.
     The affirmative vote of a majority of the members of the state board is required to take official action. The state board shall record their minutes which shall be open to the public. All such meetings of the state board shall be open to the public except when personnel matters and privileged matters between the board and its attorney are being discussed. If such meetings are held, the board shall limit the topics discussed or acted upon to such matters only.
     Section  5.  At the annual meeting, the state board shall elect a president from among the members, whose term of office shall be for one year.
     Section  6.  The members of the state board shall be paid per diem compensation and allowable expenses for their services on the board pursuant to §  4-7-10.4. However, the secretary of the Department of Labor and the secretary of the Department of Tourism and State Development are prohibited from receiving per diem compensation and allowable expenses pursuant to §  3-8-3 and any state employee serving on the board is prohibited from receiving per diem compensation pursuant to §  3-8-4.1.
     Section  7.  The state board may promulgate and enforce rules pursuant to chapter 1-26, pertaining to the operation, control, and supervision of technical institutes. The state board shall establish a uniform tuition rate, which does not include student fees, for all technical institutes.
     Section  8.  The state board shall provide overall policies, goals, and objectives for the management of public postsecondary technical education 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.
     Section  9.  The state board shall select and employ an executive director and set the executive director's annual compensation, duties, and responsibilities. The state board shall provide overall

policy guidance to the executive director, who is responsible for day-to-day operations of the state board.
     Section  10.  The state board shall approve changes in organizational structure or functional assignments for the executive director.
     Section  11.  The state board shall delegate to the executive director the authority to hire and fire state board employees and to establish salaries in conformance with state laws and regulations.
     Section  12.  The state board shall review and approve recommendations for annual funding requests for all public technical institutes and make recommendations to the Governor and the Legislature.
     Section  13.  The state board shall consider and act upon the following:

             (1)    Recommendations regarding legislation proposed for postsecondary technical education;
             (2)    All actions required by law to be taken by the state board;
             (3)    Establishment of committees related to statewide mission of public technical institutes; and
             (4)    Approve all new diploma or degree granting or awarding programs at any technical institute.
     Section  14.  The state board shall represent the state with other agencies in South Dakota, in other states, and at the national level.
     Section  15.  The state board shall make recommendations for enhancing the mission of public technical institutes for the benefit of the state.
     Section  16.  The state board shall establish an annual report and guidelines for reporting for the technical institutes.
     Section  17.  The state board shall facilitate institutional and program accreditation, compliance with the North Central Association Higher Learning Commission, and other approved industry

accreditations.
     Section  18.  The state board shall approve technical institute requests for purchase, construction, or alteration of facilities that involve the expenditure of state funds.
     Section  19.  Upon passage of an authorizing resolution by the school board of any school district owning and operating a postsecondary technical institute, the technical institute shall be established as an independent public education entity which shall be attached to the Department of Tourism and State Development for administrative and reporting purposes. The authorizing resolution adopted by the school district owning and operating the postsecondary technical institute shall specify the assets and liabilities being transferred to the new independent technical institute agency. The authorizing resolution shall transfer to the new independent technical institute agency substantially all of the school district's assets, including real estate, which are primarily used in the ordinary course of business in the existing operation of the school district's existing postsecondary technical institute including, without limitation, all rights, title, and interest of the school district in and to any sublease of facilities between the Board of Education and the school district entered into in connection with a program of the Health and Educational Facilities Authority under §  1-16A-74. In no event is the technical institute obligated to assume any liabilities not related to assets received by the technical institute or related to the ordinary operations of the technical institute. School districts are expressly authorized to transfer primary responsibility for repayment of all debt related to buildings and real estate transferred to the new independent technical institute agency including obligations incurred in connection with the program of the Health and Educational Facilities Authority under §  1-16A-74. The authorizing resolution adopted by the school district shall establish for the independent technical institute agency a seven to nine member regional board of directors which shall have the duties and powers set forth in this Act. The regional board membership shall include representatives of business and industry leaders from the service area of the technical institute, one or more members of the local

school board in which the institute is located, and persons experienced in economic and work force development in its region. The terms on the regional board of directors for members of the local school board shall expire at the same time as their local school board term expires.

     The initial regional board members shall be appointed for initial one, two, and three year terms staggered so that the terms of approximately one-third of the members of the board expire at any one time. Thereafter, the terms of the board members shall be for three years. The local school district currently owning and operating the technical institute shall appoint the initial members of the regional board in it authorizing resolution and specify the original term of such board member. Thereafter, the regional boards shall elect successors for those directors whose terms are expiring by vote of the members of the board whose terms are not expiring. However, no elected member may take office as a regional board member until the member's election has been confirmed and approved by the local school board in which the institute is located. If the local school board fails to approve or reject a successor member selected by a regional board within sixty days of the date when the local school board receives notice of such selection by the regional board, the proposed regional board member is deemed approved. The Mitchell, Rapid City, Sioux Falls, and Watertown school board shall adopt an authorizing resolution as provided in this section no later than October 31, 2011. The authorizing resolution adopted by a school board pursuant to this section is subject to review and approval by the secretary of the Department of Tourism and State Development. The secretary shall act on an authorizing resolution within thirty days of receipt of the authorizing resolution from the adopting school district. If the secretary does not approve the authorizing resolution, the secretary shall notify in writing the adopting school district of his or her objections. The secretary may fail to approve an authorizing resolution only due to the failure of the authorizing resolution to meet the standards set forth in this section related to the content of the authorizing resolution. Upon receipt of a letter from the secretary detailing his or her objections to the initial authorizing resolution, a

school district shall adopt a modified authorizing resolution complying with the secretary's objections. All authorizing resolutions shall become fully implemented no later than July 1, 2012.
     Section  20.  The regional boards of directors shall implement state board policies and goals to provide management and direction to ensure that the regional needs of the public, business, and industry are met to the highest possible degree and in the most cost-effective and efficient manner. Each regional board shall oversee the management of its institute, which shall be in accordance with the established objectives and the policies of the state board.
     Section  21.  The policies of each regional board may be amended or adopted by the regional board acting collectively at any regular meeting of the regional board subject to the regional board's policies. All meetings of the regional boards are subject to the South Dakota open meetings law.
     Section  22.  The Lake Area Technical Institute region is hereby established. The Lake Area Technical Institute region includes all of Campbell, McPherson, Brown, Marshall, Roberts, Walworth, Edmunds, Day, Potter, Faulk, Spink, Clark, Codington, Grant, Hamlin, Deuel, Kingsbury, and Brookings Counties.
     Section  23.  The Mitchell Technical Institute region is hereby established. The Mitchell Technical Institute region includes all of Sully, Hyde, Hand, Beadle, Hughes, Lake, Lyman, Buffalo, Jerauld, Sanborn, Miner, Brule, Aurora, Davison, Hanson, Tripp, Gregory, Charles Mix, Douglas, Hutchinson, Bon Homme, and Yankton Counties.
     Section  24.  The Southeast Technical Institute region is hereby established. The Southeast Technical Institute region includes all of Moody, McCook, Minnehaha, Turner, Lincoln, Clay, and Union Counties.
     Section  25.  The Western Dakota Technical Institute region is hereby established. The Western Dakota Technical Institute region includes all of Harding, Perkins, Corson, Butte, Meade, Ziebach, Dewey, Lawrence, Haakon, Stanley, Pennington, Jones, Custer Fall River, Shannon, Jackson,

Mellette, Bennett, and Todd Counties.
     Section  26.  Each regional board, acting on behalf of its own technical institute, shall:

             (1)    After a public hearing, adopt an annual budget of revenues and expenditures. The regional board shall establish student fees at its technical institute and shall charge the uniform tuition rate as established by the state board. Each regional technical institute shall retain in its accounts and appropriate in its budget all revenues generated at that technical institute by student tuition and fees;
             (2)    Review all new education programs for its technical institute and the deletion or modification of existing programs;
             (3)    Maintain awareness of, and communicate to the president of its technical institute, local industry, and community needs for programs and services to be provided by the technical institute;
             (4)    Review and approve the local plan for evaluating its technical institute and the processes and outcomes of its student services and instructional programs;
             (5)    Review, approve, and submit to the state board, for information and comment, an annual report regarding the performance of its technical institute relative to its goals and objectives, including meeting the ongoing and short-term training needs of business, industry, and the regional community at large, in an effective and efficient manner;
             (6)    Confer the awarding of all certificates, diplomas, and degrees to students completing approved programs in the regular instructional program of the technical institute, having assured that all standards, competencies, and other requirements of the state board and the technical institute have been satisfied;
             (7)    Review, approve, and assure implementation of its technical institute's plan to identify, on a periodic and timely basis, the current and future training needs of business, industry,

and the community at large;

             (8)    Review and approve the strategic plan, goals, and objectives for its technical institute;
             (9)    Review on a quarterly basis its technical institute's fiscal report of receipts, expenditures, and fund balances;
             (10)    Assure that the technical institute operates at all times in accordance with the policies of the state board;
             (11)    Make any other recommendations as deemed appropriate to the president or the state board regarding the improvement of its technical institute's operations or postsecondary technical education in general;
             (12)    Employ, dismiss, and establish the salary of the technical institute president;
             (13)    Approve salaries and employment contracts for all staff;
             (14)    Establish policies for approval of contracts for services for its technical institute;
             (15)    Require an annual audit of all finances and procedures and submit the audit report to the appropriate agencies; and
             (16)    Approve the operational policies for the technical institute.
     Section  27.  The State Board of Technical Institutes shall be attached to the Department of Tourism and State Development for administrative and reporting purposes.
     Section  28.  The technical institutes created pursuant to section 19 of this Act are political subdivisions of the State of South Dakota.
     Section  29.  Technical institutes may not construct student union buildings and recreational facilities for technical institute students. This restriction includes the use of student fees to pay for student union buildings and recreational or multi-use facilities. The provisions of this section may not be construed as a restriction of construction or operation of regular cafeteria or multi-use facilities for students at technical institutes. The provisions of this section do not apply to any multi-

use facility constructed and placed in operation prior to January 1, 2007.
     Section  30.  The continuing contract provisions set forth in § §  13-43-9.1 to 13-43-11, inclusive, do not apply to any person employed in a public technical institute. At least sixty days prior to the termination of an employee in a technical institute, the governing board shall notify in writing the employee of such termination.
     Section  31.  A technical institute may award an associate in applied sciences degree. The state board may promulgate rules pursuant to chapter 1-26 providing for approval of programs in technical institutes leading to an associate in applied science degree. In approving any degree granting program, the state board shall consider curriculum, required hours, quality of instruction, minimum standards for entry into the program, and standards for program completion.
     Section  32.  That § 13-39-1.2 be amended to read as follows:
     13-39-1.2.   Terms used in this chapter, mean:

             (1)      "Adult vocational education," the training provided to upgrade or update the occupational skills of persons who are preparing to, or have already, entered an occupation;
             (2)      "Center board," the governing body of a multi-district center;
             (3)      "Division," the Division of Education Services and Resources of the Department of Education;
             (4)      "Facilities," buildings, rooms, property, and permanent equipment, including vehicles, used to provide vocational education;
             (5)      "LEA," a local education agency limited to public school districts and the legal entities that a school district is authorized to establish;
             (6)      "Multi-district center," a multi-district secondary occupational vocational education center;
             (7)      "Multi-use facility," a structure or part of a structure for student or faculty use as a lounge

area, cafeteria, classroom, or large group area not operated as a student union building in which student fees are charged and utilized to pay for construction and maintenance of a facility under the direct or indirect control of the students;

             (8)      "Participating district," a school district which has voting representation on a multi-district center board;
             (9)     
             (10)      "Secretary," the state secretary of education;
             (11)      "State board," the South Dakota Board of Education;
             (12)      "Vocational education," organized programs at the secondary or adult levels directly related to the preparation of individuals for paid or unpaid employment, or for the additional preparation for a career requiring other than a baccalaureate or advanced degree.
     Section  33.  That § 13-39-9 be amended to read as follows:
     13-39-9.   The director has general control and supervision over all vocational education in all public secondary schools and all other vocational education functions assigned to him or her by the secretary of education.
     Section  34.  That § 13-39-18 be repealed.
     Section  35.  That § 13-39-19 be amended to read as follows:
     13-39-19.   The secretary of education may distribute funds appropriated by the Legislature or granted by any federal agency to the state in accordance with chapter 4-8B, for vocational education in the state in accordance with a state plan or plans adopted by the South Dakota Board of Education. The aid disbursed to the different schools of the state and all expenses incurred in the administration of the provisions of any federal acts relating to vocational education shall be paid out of the funds of the secretary appropriated for that purpose and from the federal funds allotted to the State of South

Dakota for similar purposes. The state treasurer is the custodian of all money paid to the state from federal appropriations for the purpose of vocational education, and shall disburse the funds on warrants issued by the state auditor upon vouchers approved by the director. The secretary of education shall authorize the director to submit vouchers to the state auditor for the amount payable as state and federal aid to each school approved under the provisions of this chapter. Upon receipt of the vouchers, the state auditor shall draw warrants on the state treasury in favor of the treasurer of the public secondary institute for the sum approved by the secretary.
     Section  36.  That § 13-39-26 be amended to read as follows:
     13-39-26.   The provisions of this chapter do not apply to private business schools, postsecondary technical institutes, or private vocational institutions except that the secretary of education and LEAs may enter into contracts with these schools and institutions to provide vocational education.
     Section  37.  That § 13-39-34 be repealed.
     Section  38.  That § 13-39-35 be repealed.
     Section  39.  That § 13-39-35.1 be repealed.
     Section  40.  That § 13-39-35.2 be repealed.
     Section  41.  That § 13-39-36 be repealed.
     Section  42.  That § 13-39-37 be repealed.
     Section  43.  That § 13-39-37.1 be repealed.
     Section  44.  That § 13-39-38 be repealed.
     Section  45.  That § 13-39-39 be repealed.
     Section  46.  That § 13-39-39.1 be repealed.
     Section  47.  That § 13-39-65 be repealed.
     Section  48.  That § 13-39-72 be repealed.
     Section  49.  The provisions of sections 29 to 46, inclusive, of this Act are effective on the date

of the first annual meeting of the State Board of Technical Institutes, pursuant to section 5 of this Act.
     Section  50.  No technical institute created pursuant to this Act may be deemed to be an educational institution under the control of the Board of Regents pursuant to S.D. Const., Art. XIV, §  3. No technical institute may use the term, college, or the term, community college, as a part of its name, because the mission of the technical institutes is job training and work force development.
     Section  51.  The state board is the lawful successor to the Board of Education with respect to (a) the lease purchase agreement dated as of August 1, 1988, between the Health and Educational Facilities Authority and the Board of Education, as heretofore amended or supplemented, (b) the first supplement to general pledge and escrow agreement between the treasurer, the Board of Education, the Health and Educational Facilities Authority, and the First National Bank in Sioux Falls, dated as of August 1, 1988, as amended and supplemented, (c) the fourth supplement to facility fee tuition collection and deposit agreement dated June 1, 1999, among the treasurer, the Board of Education, the First National Bank in Sioux Falls, and the school districts specified in section 19 of this Act, or their successors, as such agreement has been heretofore amended or supplemented from time to time, and (d) all other agreements related to the foregoing and with respect to vocational education program revenue bonds issued from time to time by the Health and Educational Facilities Authority to finance property used by the technical institutes.
     Section  52.  The state board has all necessary power and authority to enter into the agreements described in section 51 of this Act and succeeds to and assumes all of the obligations of the Board of Education with respect thereto and is bound by all of the covenants of the Board of Education in connection therewith, which obligations and covenants are hereby ratified and confirmed. All bonds, notes, or other evidences of indebtedness outstanding on the effective date of this Act are unaffected by the transfer of functions from the Board of Education to the state board. No contract with respect

to such bonds may be deemed to have been impaired by this Act.


An Act to establish a State Board of Technical Institutes, to provide for its powers, duties, and responsibilities, and to provide for the transfer of authority over public postsecondary technical education from the Department of Education to the State Board of Technical Institutes.

=========================
I certify that the attached Act originated in the

SENATE as Bill No. 95

____________________________
Secretary of the Senate
=========================     

____________________________
President of the Senate

Attest:

____________________________
Secretary of the Senate

____________________________
Speaker of the House

Attest:

____________________________
Chief Clerk

Senate Bill No. 95
File No. ____
Chapter No. ______  
  =========================
Received at this Executive Office this _____ day of _____________ ,

20____ at ____________ M.


By _________________________
for the Governor
=========================

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

____________________________
Governor
=========================
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