SD HB1204

Creates the South Dakota school construction loan fund administered by the Department of Education to provide zero-interest loans to school districts for constructing or expanding K-12 school buildings, with loans capped at 40% of total project costs and repaid over 20 years with no collateral required.

Allocates 70% of fund moneys to school districts with fewer than 4,000 students and 30% to districts with 4,000 or more students.

Excludes districts eligible for loans under § 11-15-8, districts headquartered within 10 miles of another district's headquarters, and districts with fewer than 200 students unless designated as sparse school districts.

Requires the School Finance Accountability Board to promulgate rules governing the application process, eligibility criteria based on capital outlay fund balances, levy rates, and enrollment trends over the previous 10 years.

Transfers $1 from the general fund as initial capitalization, with interest earnings and loan repayments remaining in the fund; effective June 30, 2026.