South DakotaHB 1072100th South Dakota Legislature (2025)House

modernize provisions relating to water development districts.

Sponsored By: Wittman, Kadyn (Democratic)

Signed by Governor

ElectionsPetitionsWater Management

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 5 benefits, 1 costs, 11 mixed.

Property taxes fund water district projects

Water districts can levy $0.30 per $1,000 of taxable property value annually, subject to the exception in § 46A-3E-1. Where districts overlap, the larger levy is split according to each district’s share of their combined proposed levies. Boards set levies by resolution to fund their budgets, with county shares based on equalized assessed property values. By October 1, boards must send certified levies and budgets to county tax officials and the Department of Revenue. Counties collect district taxes and assessments like general taxes, including interest and penalties, and send collections to districts monthly.

Property owners face water project charges

Water project costs must follow the benefits received, with direct users paying for water or property benefits. Special assessments require a petition signed by at least 66 2/3% of owners of the property being assessed. The board must hold a hearing, with notice published weekly for two weeks, ending at least 10 days before it. Owners must receive notice within 20 days after the board adopts its resolution; assessments start after 30 days unless at least 60% file a timely written protest. Water delivery assessments require each person's contract agreement, and people joining after the project petition may owe extra payments.

Health coverage options for district employees

Water district boards can offer group hospital and medical insurance to employees and their immediate families. Boards can pay all or part of employee premiums, but contributions are not required. Access and savings depend on the board’s coverage and payment choices.

District representation follows population changes

After each 10-year census or district boundary change, the state board must review board size and redraw director areas. The changes must reflect population and fair representation. Current directors can finish their terms if they still live in the district. For added seats, remaining directors choose interim members from candidates with petitions signed by at least 25 eligible area voters. Interim members serve until elected directors take office after the next general election.

Residents can inspect district financial records

Residents can inspect district minutes and business records at the main office during reasonable business hours. Boards must send meeting minutes to the district's official newspaper. Districts with yearly revenue over $350,000 must obtain annual audits; those at or below $350,000 can submit annual reports instead. Audit reports must be kept, filed with the secretary of state, and announced as available through a published notice. The auditor-general can also audit for cause or at the board's request.

Seven water districts have defined boundaries

The law defines seven South Dakota water districts. Central Plains covers Faulk, Hughes, Hyde, Potter, and Sully counties, plus municipalities wholly or partly within or next to them. East Dakota covers Brookings, Codington, Deuel, Grant, Hamlin, Minnehaha, and Moody counties; Lake County except Clarno, Concord, Orland, Wayne, and Winfred townships; Badger Township in Kingsbury County; and municipalities within or next to those areas. James River covers Beadle, Brown, Davison, Hanson, Hutchinson, Sanborn, Spink, and Yankton counties, specified Aurora and Marshall townships, and municipalities wholly or partly within those areas. South Central covers Bon Homme, Brule, Buffalo, Charles Mix, Douglas, and Gregory counties, specified Aurora townships, and Lyman County south of the White River. West Dakota covers Pennington County west of the Cheyenne River. West River covers Haakon, Jones, and Mellette counties, specified parts of Jackson, Pennington, and Lyman counties, the Badlands unorganized territory, and specified unorganized territory in east central Pennington County. Vermillion Basin covers Clay, McCook, and Turner counties, Kingsbury County except Badger Township, specified Lake and Miner townships, and municipalities wholly or partly within those areas.

Water districts help plan local projects

Districts must promote water conservation, development, and sound management based on local priorities. They coordinate water quality and supply projects, give project sponsors technical, organizational, and financial help, and recommend state water plan projects. Districts can sue and be sued in their own names. Boards can buy liability insurance for directors' and employees' official acts and insurance protecting district property.

Water districts can acquire private property

Districts can buy, lease, hold, and use property needed for district purposes. Property sales, exchanges, leases, and disposal must follow state procedures. Districts can use eminent domain to take needed property rights only when negotiation fails. Land meeting federal wildlife mitigation requirements must be inside the district benefiting from the project.

Property assessments require strong owner support

Water districts can charge special assessments only on property that specially benefits from a project. Owners of at least 66⅔% of the property to be assessed must sign a state-approved petition. Assessments take effect 30 days after adoption unless a timely protest has signatures from at least 60% of affected owners. Owners who agree to assessments by contract can owe additional payments beyond their original assessments, including owners who join later.

Water district contracts face funding safeguards

Water districts can use property taxes, special assessments, or both to fund their duties and contracts. Except for special assessments, boards cannot commit contract money beyond funds on hand or collected that fiscal year. Contracts with taxing entities must be secured by their taxing or assessment powers; nontaxing entities must provide payment assurance. Collections go into a board-designated account, with payments made through treasurer’s vouchers under board procedures.

Water district taxes fund public budgets

Districts can levy property taxes up to $0.30 per $1,000 of taxable value and keep reserve money across years. Boards must adopt an itemized budget at organization and annually by October 1. Before approval, they must publish hearing notices weekly for two successive weeks and allow public comments. County shares follow their share of district equalized assessed value; counties forward tax collections monthly. Where district taxes overlap, each district receives the higher levy multiplied by its proposed levy divided by all overlapping proposed levies combined.

Communities can join or leave districts

A neighboring county, township, or group of townships can join with district board support and majority voter approval there. A county or part of one can leave with majority voter approval in that area. Withdrawal proposals need approval from four-fifths of county commissioners or signatures equal to 5% of the area's last gubernatorial-election votes. Proposals must be presented 90 to 120 days before a regular general election. The county containing the affected area pays the election costs.

District agreements need reliable payment backing

Districts can contract with others and accept public or private gifts, grants, donations, and assistance for district purposes. Except for special assessments, districts cannot incur spending obligations without money on hand or collectible that fiscal year. Contracts for taxing bodies must be backed by that body's tax or assessment power. Contracts with bodies lacking taxing power need a payment assurance satisfactory to the district board. The law does not guarantee grants or direct household payments.

Local voters elect paid district directors

Districts have five directors at populations up to 25,000, seven above 25,000 through 75,000, and nine above 75,000. Directors must be eligible voters living in their represented areas; regular terms are four years after initial staggered terms. The first board is elected at the next general election; without one within 12 months, the district pays for a special election. Candidate petitions need 25 registered voters from the area; regular filing runs January 1 through the last Tuesday in March before the primary. Initial-election petitions are due the first Tuesday in August before the general election or 30 days before a special election. Remaining directors fill vacancies with qualified area residents for the rest of the term. Directors receive board-set pay and approved work-expense reimbursement; an appointed treasurer votes only when also a director.

Two water district statutes are repealed

The law repeals SDCL 46A-3B-13 and 46A-3E-15. The supplied text does not describe those sections, so their separate effects on household costs or rights are unclear.

Voters can dissolve water districts

Dissolution petitions need signatures equal to at least 15% of the district's votes in the last gubernatorial election. They are due by the first Tuesday in July before the general election. The state board must dissolve the district when at least 50% of votes cast favor dissolution; the district pays election costs. Rejection bars another dissolution vote for four years, and a later vote requires a new petition. After dissolution, the state board handles remaining duties until financial obligations and contracts are settled.

Voters control new water district formation

Eligible voters can seek a formation election with signatures equal to at least 15% of the area's last gubernatorial-election votes. Formation requires at least 60% approval district-wide, and an election district needs at least 60% approval there for inclusion. An included election district can seek withdrawal with signatures from 15% of its voters within 60 days after the formation election. That withdrawal vote occurs at the next general election. A petition-created district becomes a political subdivision when the state board files its formation resolution and a legal entity the following January 1.

Sponsors & Cosponsors

Sponsor

Wittman, Kadyn
Democratic • House

Cosponsors

Bathke, Jeff
Republican • House
Duhamel, Helene
Republican • Senate
Healy, Erin
Democratic • House
Kull, David
Republican • House
Larson, Liz
Democratic • Senate
Muckey, Erik
Democratic • House
Perry, Carl
Republican • Senate
Smith, Jamie
Democratic • Senate
Uhre-Balk, Nicole
Democratic • House
Vasgaard, Richard
Republican • House

Roll Call Votes

All Roll Calls

Yes: 109 • No: 9

Senate vote • 2/13/2025

Do Pass Amended

Yes: 35 • No: 0

Senate vote • 2/12/2025

Do Pass

Yes: 6 • No: 0

House vote • 1/30/2025