South Dakota Clears Path for Tech-based ED

With the recent passage of much economic development legislation in South Dakota, Gov. Mike Rounds' 2010 Initiative would seem to be moving along as planned. The 2010 Initiative, an economic stimulus plan introduced last fall, outlines a series of goals for growth in South Dakota by the year 2010 (see the Oct. 31, 2003, issue of the Digest).

Gov. Rounds signed House Bill 1145 on March 3, setting up a $3 million loan program for entrepreneurs and start-up companies wanting to do business in their home state. Under the bill, any entrepreneur or start-up company located in South Dakota can apply for low interest loans. Start-up companies are defined as new technology, communications, service or manufacturing businesses.

Some stipulations on HB 1145 apply. Loan applicants are required to provide matching funds equal to the amount of their loan, which could range from $30,000 to $50,000. Applicants also will be responsible for developing a three-year strategic plan for their innovative business concept. They must prove to a state economic development board "with a reasonable probability" their concept can succeed.

Other bills recently signed by Gov. Rounds in support of the 2010 Initiative include:

• Senate Bill 195 allocates $3.5 million to stimulate university research and development. The funding would fall under a newly created Division of Research Commerce, jointly run by the Department of Tourism and State Development and the Board of Regents.
• SB 202 provides up to $12 million in loans for investment groups to take equity positions in businesses. Nonprofit organizations might not need any matching funds while for-profit groups would need to provide at least a one-to-one match of funds, a Feb. 19 Aberdeen American News story reported.
• SB 201 creates the Science and Technology Authority, which will oversee the conversion of the former Homestake gold mine into an underground scientific laboratory (see the Jan. 16, 2004, issue of the Digest). And,
• SB 11 renames the new regents scholarship program the South Dakota Opportunity Scholarship Program. A total of $1.3 million is available for these scholarships, which allow $5,000 over four years for high school seniors who attend in-state colleges or universities.

Although the opportunity scholarship program is being funded for the first time, it would not be the first of its kind for South Dakota. The Dakota Corps Scholarship Program was introduced in the 2003 legislative session but failed to receive funding, according to Gov. Rounds' press secretary Mark Johnston. The governor has raised $600,000 from private sources to implement Dakota Corps, Johnston said.

Under Dakota Corps, eligible high school graduates are awarded $4,000 per year, covering full tuition and fees at participating universities in South Dakota. The students must agree in writing to stay in-state following college graduation and meet other criteria to qualify for the program. The first round of Dakota Corps scholarships will take effect in Fall 2004.

One tech-based economic development bill not passed by the South Dakota State Legislature, HB 1281, would have provided for certain property tax exemptions for business incubators owned by nonprofit organizations. The bill failed 17-16, needing 18 votes.

To view the full text of any of the above-mentioned bills, visit: http://legis.state.sd.us/index.cfm