The Rural Lobbyist: ADRDL Funding Discussion Heats Up As Session Comes to Close

As the final days of the 92^nd Legislative Session draw near, we find ourselves with three bills that will most likely play a part in funding the new Animal Disease Research and Diagnostic Lab. These bills will most likely be some of the last bills addressed and will also most likely spend time in conference committee. The breakdown of the three bills can be found below:

• SB 35 provides the funding for ADRDL via the ag future development fund. Last year, as part of the sales tax increase, property taxes for all classes of property were reduced. SB 35 seeks to redirect a portion of the savings from ag land properties, which would have been implemented in 2018, to the ag future development fund. This will generate an estimated $5.5 million per year. SB 35 passed the Senate 31-3.
• HB 1157 establishes the ag future development fund and direct $3.35 million annually toward the ADRDL bond payment until the bond is paid off. The remaining annual ~$2.25 million will be directed to other ag development projects in the regental system or at the technical institutes. HB 1157 passed the House last Thursday, 60 to 7 and was amended then sent to the Senate floor by the Senate Ag committee.
• SB 172 provides the authorization to construct the facility and issue bonds to pay for it. It also establishes the ADRDL bond redemption and operations fund, to ensure precise tracking of the funds going to pay the bond and assist the lab in funding its operations. Due to other funding options, the proposed fee increases will be removed with an amendment, though discussions pertaining to the fee on pet food are ongoing.

South Dakota Farmers Union is not 100% comfortable with the current plan but it is a plan heading in the right direction. If you recall, some of the first options for funding the lab suggested a myriad of fee increases placed solely on the agricultural industry. There are still details that need to be ironed out, like who will oversee the Ag Future Development Fund (AFDF), but there is optimism that a deal can still get done. * A special thanks to Senator Jason Frerichs who suggested an amendment to HB 1157 that makes Ag the majority stakeholder on the AFDF board. The amendment was approved by the committee and sends a strong message as the bill heads to the floor. As debate continues, stay tune to SDFU communications to find out the final fate of the ADRDL funding.If you have any questions or comments you can send them to [email protected]