Bill prohibiting required campus living for SD university students fails in the House

The South Dakota House of Representatives voted down a bill Tuesday at the Capitol in Pierre that would have prohibited public universities from requiring students to live on campus the first two years of their education.

Republican Rapid City Rep. Phil Jensen introduced House Bill 1193, calling the South Dakota Board of Regents policy “unnecessary” because “dorm life isn’t great” and legal adults should be able to choose where they live and what they eat. He added that students face an “incredible amount of debt” to earn college degrees, with required on-campus housing and meal plans adding to that debt.

SD university students wouldn’t be required to live on campus under committee-endorsed legislation

Heather Forney, vice president of finance and administration for the state Board of Regents, which oversees the university system, told lawmakers during the bill’s committee hearing last week that the system relies on student housing fees and meal plans to help pay for infrastructure for dining, housing, student unions, book stores and wellness centers at South Dakota’s six public universities.

The system could lose up to $87 million annually if the legislation passes, Forney told lawmakers, which would cause a default on roughly $263 million in bonds used to build those facilities.

The Bureau of Finance and Management also opposed the legislation because of concerns that a potential default would impact the state’s AAA bond rating. A state’s bond rating is used by investors to evaluate the risk of a bond investment for projects, with a higher rating leading to better rates for taxpayers.

Opponents of the bill said the policy helps students transition to college living, increases retention among students, and improves networking among students. About 93% of students who ask for an exemption are granted it, according to the regental system. Other students are granted modifications to fit their needs, said Rep. Amber Arlint, R-Sioux Falls.

The House rejected the bill 42-28.