House Bill 1017, which would require school districts to accept cash payments for admission to school events, failed Thursday despite receiving 34 supporting votes and 32 dissenting votes on the House floor.

Two representatives — Republicans Jessica Bahmuller from Alexandria and Spencer Gosch from Glenham — were excused from the vote. There’s also two fewer legislators in the House after Tony Venhuizen became lieutenant governor and Herman Otten from District 6 declined to serve the term for which he was elected.

So, 34 wasn’t a high enough threshold to pass the bill on Thursday, even though it was the majority at the time.

Speaker of the House Jon Hansen said shortly after the vote that “the intent to reconsider is hereby noted,” so lawmakers may reconsider the bill per joint rule 5-11 on the next legislative day, Feb. 3.

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That’s after Rep. John Sjaarda, R-Valley Springs, brought an amendment to limit HB 1017 to apply to events that aren’t sold out, remove the Board of Regents and Board of Technical Education from the legislation, and put a $200 maximum in the bill. That amendment passed in the House.

Sjaarda said he brought HB 1017 after seven large schools in his area stopped accepting cash, which he said impacts accessibility and fairness at local schools.

He did not specify which local schools opted for that policy but in the House Education committee hearing for the bill Monday, testifiers discussed it was related to Brandon Valley, Harrisburg, Sioux Falls and Tea Area school districts’ partnerships with Iowa-based company Bound that provides mostly digital and cashless ticketing.

More: Sioux Falls School District faces opposition to cashless ticketing system

But those schools have testified that they work ahead of events and with athletic directors to accept cash for those who wish to use it to pay for events. Brandon Valley Superintendent Jarod Larson said that his schools still take cash for events.

Sioux Falls School Board of Education president Carly Reiter said Monday that the concerns brought by a very small number of people who spoke in favor of HB 1017, and against the district’s policy in August, weren’t “great enough” considering the benefits the district’s change to cashless ticketing gained for hundreds of other people.

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She said athletic directors at schools have gone “above and beyond” to accommodate requests for paper tickets or to pay for tickets with cash.

What did local legislators say?

Rep. Erik Muckey, D-Sioux Falls, said the intent of the bill is good but agreed that the House shouldn’t override local control and didn’t want to enforce something statewide that is a local issue.

Rep. Brian Mulder, R-Sioux Falls, said the bill was a “knee-jerk” reaction to something new. He suggested the Legislature let local schools fix their policy before implementing a statewide law.

Rep. John Hughes, R-Sioux Falls, said a mandatory cashless policy takes more money from families and schools and gives more money to banks.

Rep. Keri Weems, R-Sioux Falls, said the Legislature is part-time because it gives a lot of control to local entities and urged parents with problems getting their children into local activities and events to contact their local school boards to change their policy.

Legislators across state differed on local control

Rep. Terri Jorgenson, R-Rapid City, said she supported the bill because she felt it was a privacy issue and that use of credit cards and digital means is tracked as opposed to cash.

Rep. Roger DeGroot, R-Brookings, said he agrees people should accept cash, but said the House shouldn’t tell districts what to do.

Rep. Josephine Garcia, R-Watertown, said board members failed to help the people who said they couldn’t use cash.

Rep. Tony Randolph, R-Rapid City, said cash has been part of the economy “forever,” that he didn’t understand the objections to the bill, and said he didn’t see it as a local control issue.