The South Dakota House killed House Bill 1323 on Tuesday (March 10, 2026) after opponents said it was the latest in a series of attempts this session to lower referendum thresholds in ways that would chiefly affect school boards in Sioux Falls and Rapid City.
The vote was 40 to 27 not to concur in the Senate’s amendments and not to appoint a conference committee. This action kills the measure for the session.
HB 1323, introduced by Rep. Aaron Aylward, R-Harrisburg, would have changed referendum rules for counties, cities, school districts, and other taxing districts. For school districts, it would have allowed voters to refer both general fund and capital outlay excess levies with signatures equal to five percent of registered voters or 2,500 registered voters, whichever is fewer.
Opponents said the bill was not a neutral statewide cleanup. They argued it was another attempt to make it easier to challenge decisions by the state’s biggest local governing bodies.
Rep. Greg Jamison, R-Sioux Falls, said, “The challenge with the 2500 number is that it isolates Sioux Falls and Rapid City,” and warned it could create “a stifling effect on local governing bodies.”
Rep. Jim Halverson, R-Winner, read from an email he said came from a Gregory School Board vice president.
“This really ties the hands of local school boards and takes away local control. Please don’t tie our hands. Let us do what we are elected to do for our schools.”
Opponents also said lawmakers had already seen versions of the idea more than once.
“Clearly, we’ve seen this bill or iterations of it,” said Rep. Matt Roby, R-Watertown. “I think it’s the third time now on this floor.”
Rep. Lana Greenfield, R-Doland, did not like the approach by supporters.
“We’ve seen this bill in different shapes and forms. It’s been disguised and hid inside other bills,” she said.
Supporters said the current threshold is too hard to meet in large districts and argued the bill would give voters a more realistic chance to force a public vote.
“It’s not easy to go out and get 2,500 signatures,” Aylward said. “That still takes a lot of work, still takes organization. Let’s knock it down to 2,500 and just make it somewhat realistic for the people.”
Aylward also argued the bill was broader than a school-board fight.
“This goes across the board for counties, taxing districts, school boards, towns,” and added, “we’re not just focusing on school boards here.”
But opponents said the current system already works and should scale with population.
“Rapid City just had a TIF deal out there, right?” said Rep. Mike Stevens, R-Yankton. “They needed 3,000 signatures in 20 days. How many did they get? 6,000.”
By Todd Epp | South Dakota Broadcasters Association.
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