South Dakota House members narrowly rejected a bill Monday that would have allowed businesses to opt out of paying into the state’s Future Fund, voting 36–31 against the proposal.
HB 1230, sponsored by Rep. Karla Lems of Canton, sought to require explicit consent before businesses could be assessed
Opponents warned the change would undermine the Future Fund, created in 1987 to support research and economic development. Critics also pointed to controversies under former Gov. Kristi Noem, calling some spending — including out‑of‑state promotional ads, a Rapid City shooting range, and a Sioux Falls rodeo — abuses of the program.
Rep. Erik Muckey argued the bill was unnecessary, noting lawmakers already passed separate reforms this session to add oversight with support from Gov. Larry Rhoden’s administration. The House ultimately rejected the measure.
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