South DakotaAirport owners may seek state loans for infrastructure work
South Dakota's housing authority may lend money for improvements or upkeep to qualifying airports, after considering each request at a public meeting.
What it does
The housing authority may lend money from the state housing infrastructure fund to certain airports for repairs or upkeep. Each loan request must be considered at a public meeting.
Loans may be used to improve or maintain airport facilities and cannot exceed $15 million per recipient. They are unsecured and carry 2% yearly interest, with equal annual payments over 20 years.
A municipality's airport loan is exempt from certain state borrowing laws but remains subject to constitutional debt limits. Regional airport authority loans are exempt from specified airport authority laws.
Argument forEligible airports could borrow for repairs or upgrades, which may help them maintain facilities while spreading payments over time.
Argument againstUnsecured loans could put public fund money at risk if an airport cannot repay, though repayments go back into the fund.
More detail
The housing authority may lend money from the South Dakota housing infrastructure fund to eligible airports. The airport must have scheduled air service, be in South Dakota, and be in a metropolitan area with at least 125,000 residents as of July 1, 2024. The authority decides whether to approve each requested loan at a public meeting. The population test uses the estimate as of July 1, 2024.
The authority may lend up to $15 million per airport recipient for infrastructure improvements or upkeep. These limits and terms apply to loans made under the airport loan provision. The loans are unsecured, charge 2% yearly interest, and require equal annual payments calculated over 20 years. The first payment is due one year after the loan is funded. The loan must close and be funded by June 30, 2030.
Certain airport loans are exempt from specified state and local borrowing rules. The exemptions apply to loans under the airport loan provision made to a municipality or a regional airport authority. Municipal loans remain subject to constitutional limits on municipal debt.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Signed by the Governor Larry Rhoden on 2026-03-30 S.J. 549Became Law
- Mar 11Delivered to the Governor on 2026-03-11 S.J. 520To Governor
- Mar 10Signed by the Speaker H.J. 553Passed House
- Mar 9Signed by the President S.J. 505Passed Senate
- Mar 5House of Representatives Do Pass Amended , Passed, YEAS 43, NAYS 24 H.J. 527
- Vote recorded Do Pass Amended. Result: pass.Lower
- Mar 4State Affairs Do Pass , Passed, YEAS 7, NAYS 6Minor
- Vote recorded Do Pass. Result: pass.Lower
- Mar 4Scheduled for hearing H.J. 1
- Feb 25Referred to House State Affairs H.J. 446Minor
- Feb 24First Reading House H.J. 423
- Feb 23Senate Do Pass Amended , Passed, YEAS 22, NAYS 11 S.J. 364
- Vote recorded Do Pass Amended. Result: pass.Upper
- Feb 23Senate Motion to amend , Passed, S.J. 364 Amendment 76BMajor
- Feb 19Commerce and Energy Do Pass Amended , Passed, YEAS 8, NAYS 0
- Vote recorded Do Pass Amended. Result: pass.Upper
- Feb 19Commerce and Energy Motion to amend , Passed, Amendment 76AMajor
- Feb 19Scheduled for hearing
- Feb 17Referred to , Passed, Senate Commerce and Energy YEAS 8, NAYS 0Minor
- Vote recorded Referred to. Result: pass.Upper
- Feb 17Scheduled for hearing
- Jan 13First read in Senate and referred to Senate Committee on Appropriations S.J. 11Introduced
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