A proposal to change how South Dakota distributes money from its main economic development fund stalled Friday after a tied vote in the Senate State Affairs Committee.
Senate Bill 1, which would revise the process for awarding loans and grants from the Employer’s Investment in South Dakota’s Future Fund, failed on a 4–4 vote after lawmakers adopted an amendment removing a cap tied to the federal funds rate. The bill was deferred and remains alive for future consideration.
The fund, administered by the Governor’s Office of Economic Development, supports research and economic development projects through loans and grants approved by the Board of Economic Development. SB 1 would require the Governor’s Office of Economic Development to establish formal rules governing applications, selection criteria, economic-impact analysis, interest-rate setting, and loan or grant disbursement.
Several legislators testified in favor of the bill, including Reps. Marty Overweg, Julie Auch, Erik Muckey, and Eric Emery, along with Sen. Red Dawn Foster.
Opposition came largely from business, higher-education, and economic development groups, as well as state agencies. Bill Even, commissioner of the Governor’s Office of Economic Development, testified against the measure, joined by representatives of the Department of Labor and Regulation, chambers of commerce, the Board of Regents, the Board of Technical Education, and multiple industry associations.
Before the final vote, the committee adopted an amendment removing language that would have capped loan interest rates at no more than two percentage points above the federal funds rate. That amendment passed by voice vote.
The final motion to pass SB 1 as amended failed on a 4–4 vote. With the tie vote, the chair deferred the bill.
Earlier in the meeting, the committee unanimously advanced three other measures — SB 5, SB 56, and SB 57 — all of which were certified as uncontested and placed on the consent calendar.
