25.507.26 100th Legislative Session HJR5007
2025 South Dakota Legislature
House Joint Resolution 5007
Introduced by: Representative Gosch
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A JOINT RESOLUTION, Proposing and submitting to the voters at the next general 1
election a law transfer the state accounting system from the Bureau of 2
Finance and Management to the state auditor and amend provisions 3
pertaining to the Bureau of Finance and Management. 4
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 5
Section 1. That at the next general election held in the state, the following be submitted to 6
the electors of the state for their approval: 7
An ACT to transfer the state accounting system from the Bureau of Finance and 8
Management to the state auditor and amend provisions pertaining to the 9
Bureau of Finance and Management. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 11
Section 1. That a NEW SECTION be added to chapter 1-9: 12
For the purposes of this chapter, "state accounting system" means the total 13
structure of records and procedures that identify, record, classify, summarize, and report 14
information on payments made, revenues received, and the financial position and results 15
of operating the funds, accounts, and organizational components of this state. 16
Section 2. That a NEW SECTION be added to chapter 1-9: 17
The state auditor shall provide the Bureau of Management and Budget with the 18
amounts and classifications of moneys received or disbursed pursuant to the operation of 19
a state agency, as defined in § 1-26-1, upon request by the commissioner of management 20
and budget. 21
Section 3. That § 4-4-5 be AMENDED: 22 25.507.26 2 HJR5007
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4-4-5. The commissioner of finance and management state auditor may authorize 1
and direct the state auditor and state treasurer to account for funds in the state treasury 2
as separate accounts in lieu of funds, and the. The auditor shall modify the fund structure 3
may be modified to conform to a uniform the state accounting system. 4
Section 4. That § 4-4-6 be AMENDED: 5
4-4-6. The Bureau of Finance and Management state auditor shall annually 6
prepare financial statements for the State of South Dakota this state. The financial 7
statements shall must be prepared in accordance with generally accepted accounting 8
principles. 9
Section 5. That § 4-5-30 be AMENDED: 10
4-5-30. The state investment officer, utilizing the facilities of the state budgetary 11
accounting system, as defined in section 1 of this Act, shall pool cash accounts within the 12
funds enumerated in § 4-5-23. The Appropriations Committee of the Legislature special 13
legislative committee established in § 4-8A-2, upon recommendations from the 14
commissioner of finance and management and budget, shall certify those funds which that 15
are to participate in the interest income of the pooled investments. The state investment 16
officer shall credit the gain or interest due as a result of investments made pursuant to 17
§ 4-5-29 on a pro rata basis to the participating funds in the same ratio as the average 18
daily cash balance of each fund bears to the total average cash balance of all funds. 19
If requested by the state investment officer during each fiscal year, the state 20
treasurer shall must transfer money from the South Dakota retirement fund, health care 21
trust fund, education enhancement trust fund, the trust fund derived from the sale of state 22
cement enterprises, the general fund portion of the pooled income account for the 23
permanent school and other educational fund provided for in S.D. Const., Art. VIII, and 24
any other specific fund approved by the Bureau of Finance and Management and Budget, 25
other than the state pooled fund, to the investment council expense account in an amount 26
not to exceed the ratio of the average assets in each fund for the previous fiscal year to 27
the total average assets managed by the investment council, other than the state pooled 28
fund, for the previous fiscal year multiplied by the difference between the budget of the 29
investment council for each fiscal year and the total of the current fiscal year beginning 30
cash balance in the investment council expense account plus two hundredths of a percent 31
of the prior fiscal year's average assets in the state pooled fund. If requested by the state 32
investment officer during each fiscal year, the state treasurer shall must transfer money 33 25.507.26 3 HJR5007
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from the pooled income account to the investment council expense account in an amount 1
not to exceed two hundredths of a percent of the prior fiscal year's average assets in the 2
state pooled fund. The state investment officer may make multiple transfer requests 3
during the fiscal year, with each request being proportionate among the funds, provided 4
that the total transfers do not exceed the amounts provided by this section. 5
Section 6. That § 4-7-1 be AMENDED: 6
4-7-1. Terms used in this chapter, unless the context otherwise requires, mean: 7
(1) "Appropriation," an authorization by the Legislature to a budget unit to expend, 8
from public funds, a sum of money not in excess of the sum specified, for the 9
purposes specified in the authorization and under the procedure described in this 10
chapter; 11
(2) "Budget," the complete financial plan for the state for the fiscal period as proposed 12
in the budget report and modified and adopted by appropriation and revenue acts; 13
(3) "Budgetary system," the total structure of requested expenditure authority and 14
allotted positions for employees in the general appropriation bill; 15
(4) "Budget estimate," the statement with accompanying explanations, as provided in 16
this chapter, in which a budget unit sets forth its financial requirements; 17
(4)(5) "Budget report," the recommendations of the Governor to the Legislature as to 18
financial plans and appropriations to be requested, with the accompanying 19
statements and explanations provided for in this chapter; 20
(5)(6) "Budget unit," a department, institution, commission, agency, board, examining 21
board, or other unit of government for which separate appropriations, continuing 22
appropriations, or other dedications or earmarking of funds are made , or which 23
otherwise collects fees or funds of any nature under authority of any statute of this 24
state; 25
(6)(7) "Classification of expenditures," one of the several definite kinds of expenditures 26
denoting a class of service or commodities purchased or properties acquired as 27
specified by the commissioner of finance and management and budget for use in 28
expenditure accounting, in the making of budget estimates, and in the budget 29
reports and budgets. Such classification shall The classification must be by 30
program, function, activity, organizational unit, character and object; 31
(7)(8) "General Appropriations Act appropriation bill," an act of the Legislature which that 32
authorizes the expenditure of money from public funds for the ordinary current 33
expenditures expenses of the executive, legislative, and judicial departments of 34 25.507.26 4 HJR5007
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the state, the current expenses of state institutions, interest on the public debt, 1
and for public common schools, as further defined by rules and regulations issued 2
by the commissioner of finance and management ; 3
(8)(9) "Informational budget," the budget of any budget unit not receiving general fund 4
appropriations; and 5
(9)(10) "Special appropriations act," an act of the Legislature which that authorizes the 6
expenditure of money from public funds for any purpose other than those purposes 7
enumerated in the definition of the General Appropriations Act Appropriation Bill. 8
Section 7. That § 4-7-3 be AMENDED: 9
4-7-3. The Governor, through the Bureau of Finance and Management and Budget, 10
shall administer the budgetary system and shall supervise every public department, 11
agency, commission, institution, and other governmental units, as is necessary to secure 12
a uniform and standard classification of accounts and financial reports that will promote 13
the efficient and accurate financial information necessary to conduct the fiscal affairs of 14
state government. 15
The Governor may inquire into the methods of conducting the affairs of any public 16
body, and may prescribe and direct the use of standard forms and uniform records of 17
accounts and standard and uniform financial reports, including, if deemed advisable, an 18
encumbrance system and an allotment system . 19
Section 8. That § 4-7-7 be AMENDED: 20
4-7-7. The head of each budget unit, not later than October fifteenth of each year, 21
shall submit, on forms prescribed by the Bureau of Finance and Management and in the 22
manner deemed appropriate, such explanatory data as required and necessary to 23
adequately convey the budget requests, to the Bureau of Finance and Management 24
estimates of the financial requirements of his budget unit for the next fiscal year. The 25
estimates so submitted shall first receive the approval of the board or commission of each 26
budget unit for which a board or commission is constituted. Not later than the November 27
first following such submission, copies of such 28
Except for a budget unit under the authority of the Legislature, Unified Judicial 29
System, attorney general, auditor, commissioner of school and public lands, secretary of 30
state, or treasurer, the head of each budget unit shall, by September first of each year, 31
submit to the Bureau of Management and Budget, the estimates of the financial 32
requirements of the budget unit for the next fiscal year and all explanatory data required 33 25.507.26 5 HJR5007
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to adequately convey the necessity of the budget request. If a budget unit is administered 1
by a board or commission, the board or commission must approve the estimates before 2
the estimates may be submitted to the bureau. 3
The director of the Legislative Research Council, chief justice of the Supreme Court, 4
attorney general, auditor, commissioner of school and public lands, secretary of state and 5
treasurer shall provide to the bureau the proposed budget that the director, chief justice, 6
attorney general, auditor, commissioner, secretary of state, and treasurer, respectively, 7
plans to submit to the Joint Committee on Appropriations during the next annual legislative 8
session. 9
The bureau shall transmit copies of all explanatory data of the budget requests 10
shall be transmitted to the Legislative Research Council by the Bureau of Finance and 11
Management by October first. 12
Section 9. That § 4-7-7.1 be AMENDED: 13
4-7-7.1. All budget units, except for a budget unit under the authority of the 14
Legislature, Unified Judicial System, attorney general, auditor, commissioner of school 15
and public lands, secretary of state, or treasurer, shall submit to the Bureau of Finance 16
and Management and Budget with their budget request a detailed plan of their goals and 17
program activities. 18
Section 10. That § 4-7-32 be AMENDED: 19
4-7-32. On July first of each fiscal year or at such time that the prior fiscal year 20
general fund ending unobligated cash balance is determined, the commissioner of the 21
Bureau of Finance and Management state auditor shall transfer all prior year unobligated 22
cash up to an amount equal to ten percent of the general fund appropriations from the 23
general appropriation act bill for the prior fiscal year into the budget reserve fund. In no 24
event shall may the cash balance in the budget reserve fund be greater than ten percent 25
of the general fund appropriations from the general appropriation act bill for the prior 26
fiscal year. 27
Expenditures out of the budget reserve fund shall may only be by special 28
appropriation of the Legislature and shall only may redress such only unforeseen 29
expenditure obligations or such unforeseen revenue shortfalls as may constitute an 30
emergency pursuant to S.D. Const., Art. III, § 1. 31
Section 11. That § 4-7-39 be AMENDED: 32 25.507.26 6 HJR5007
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4-7-39. The commissioner of the Bureau of Finance and Management shall transfer 1
any unobligated cash remaining after the transfer into the budget reserve fund as required 2
by § 4-7-32 into the general revenue replacement fund if the amount in the general 3
revenue replacement fund does not exceed fifteen percent of the general fund 4
appropriations in the General Appropriations Act for the previous fiscal year. 5
If the amount in the general revenue replacement fund does not exceed fifteen 6
percent of the general fund appropriations in the general appropriation bill for the previous 7
fiscal year, the chief financial officer of the state must transfer into the general revenue 8
replacement fund, any unobligated cash remaining after the transfer made pursuant to § 9
4-7-32. 10
Section 12. That § 4-7-40 be AMENDED: 11
4-7-40. The commissioner of the Bureau of Finance and Management state auditor 12
shall report, upon request, provide a condition statement for any fund in the state 13
treasury. The commissioner of the Bureau of Finance and Management shall provide 14
condition statements when requested by a legislative committee or a legislative committee 15
chair. 16
Section 13. That § 4-7-41 be AMENDED: 17
4-7-41. For the purposes of this chapter, a condition statement is a document that 18
identifies a fund's beginning balance, receipts, disbursements, and ending balance for 19
each of the last two concluded fiscal years and that identifies a fund's beginning balance, 20
projected receipts, projected disbursements, and ending balance for the current fiscal year 21
and the next fiscal year. The fund's ending balance, for the current fiscal year and the 22
next fiscal year, shall must represent the ending cash balance of the fund reduced by any 23
money that is reappropriated to the next fiscal year along with any other commitments to 24
be funded from the ending cash balance. Condition statement forms, prescribed by the 25
Bureau of Finance and Management, shall be uniform The state auditor shall prescribe the 26
form of a condition statement. 27
Section 14. That § 4-7-45 be AMENDED: 28
4-7-45. There is hereby established within the state treasury the general revenue 29
replacement fund. The state treasurer shall transfer any funds remaining in the property 30
tax reduction fund as of June 30, 2015, to the general revenue replacement fund. In fiscal 31 25.507.26 7 HJR5007
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year 2016 and each year thereafter, the commissioner of finance and management and 1
budget may instruct the state auditor to transfer moneys available from the general 2
revenue replacement fund to the general fund that are necessary to balance the annual 3
budget due to an unforeseen revenue shortfall. 4
Section 15. That § 4-8A-5 be AMENDED: 5
4-8A-5. The state auditor shall classify and code the appropriation amounts 6
authorized as a result of the general appropriation act shall be classified and coded for 7
budgetary accounting purposes in accordance with the provisions of chapter 4-7 8
appropriation bill for the purposes of the state accounting system, as defined in section 1 9
of this Act. 10
The commissioner of management and budget shall classify and code the 11
appropriation amounts authorized as a result of the general appropriation bill for the 12
purposes of the budgetary system, as defined in § 4-7-1. 13
Section 16. That § 4-8B-10 be AMENDED: 14
4-8B-10. Notwithstanding § 4-8-17, moneys and grants received from the United 15
States or other grants or gifts of other funds moneys in excess of the amounts 16
appropriated in the general appropriations act, shall appropriation bill, may not be deemed 17
appropriated until after review by the special committee created by chapter 4-8A and then 18
only with an affirmative vote on acceptance of such funds the moneys by a majority of 19
the full membership of the special committee. Subsequent to an affirmative action on the 20
part of the special committee, the Bureau of Finance and Management shall Management 21
and Budget must make the appropriate changes in the budgetary system, as defined in § 22
4-7-1, and the state auditor must make the appropriate changes in the budgetary state 23
accounting system, as defined in section 1 of this Act. 24
The two houses of the Legislature may establish rules for the interpretation of this 25
section through adoption of joint rules. 26
Section 17. That § 4-9-17 be AMENDED: 27
4-9-17. If a fund other than the general fund becomes nonexistent or is 28
transferred to another fund by an act of the Legislature or by directive of any state 29
department or institution, the commissioner of finance and management shall state 30
auditor must retain sufficient money within the fund to pay all outstanding liabilities and 31 25.507.26 8 HJR5007
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all outstanding warrants drawn against the fund until the warrants expire one hundred 1
eighty days after their issuance. The commissioner of finance and management state 2
auditor shall transfer any balance remaining in the nonexistent or transferred fund after 3
the expiration period to the fund if to which the original fund was previously transferred, 4
or to the general fund if no other fund was designated. 5
Section 18. That § 4-10-3 be AMENDED: 6
4-10-3. The state budgetary auditor shall administer the state accounting system, 7
as defined in section 1 of this Act, and shall keep an accurate account for revenues 8
received and payments made from the state treasury for the state treasurer and state 9
auditor. 10
The auditor shall prescribe and direct the use of standard forms, uniform records 11
of accounts, and standard and uniform financial reports, including an encumbrance system 12
and an allotment system. 13
Section 19. That § 4-10-4 be AMENDED: 14
4-10-4. At the beginning of each month, the Bureau of Finance and Management 15
state auditor shall reconcile the state accounting system balances with the state 16
treasurer's state bank account records. The state auditor shall submit a copy of the 17
reconciliation to the state treasurer will receive a copy of the reconciliation as soon as it 18
the reconciliation is completed. 19
Section 20. That § 4-10-6 be AMENDED: 20
4-10-6. The state auditor shall be provided in a timely manner, with a copy of all 21
budgetary accounting reports from the Bureau of Finance and Management that he 22
considers necessary to carry out the financial functions of his office. The state auditor shall 23
review the budgetary state accounting system and may make recommendations for 24
changes in the system to the Governor Legislature. 25
Section 21. That § 4-10-7 be AMENDED: 26
4-10-7. The state auditor shall also keep records of all such public accounts and 27
other documents as have been or may be by law made returnable to his the auditor's 28
office, and other vouchers relative to the business of his the auditor's office. 29 25.507.26 9 HJR5007
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Section 22. That § 5-27-5 be AMENDED: 1
5-27-5. In fiscal year 2019, the Bureau of Finance and Management shall transfer 2
each month fourteen and one-half percent of the monthly state capital construction fund 3
revenues from the state capital construction fund to the state highway fund. In fiscal year 4
2020, the Bureau of Finance and Management shall transfer each month twenty -three 5
percent of the monthly state capital construction fund revenues from the state capital 6
construction fund to the state highway fund. In fiscal year 2021, the Bureau of Finance 7
and Management shall transfer each month twenty -nine percent of the monthly state 8
capital construction fund revenues from the state capital construction fund to the state 9
highway fund. In fiscal year 2022, the Bureau of Finance and Management shall transfer 10
each month thirty-four percent of the monthly state capital construction fund revenues 11
from the state capital construction fund to the state highway fund. Beginning in fiscal year 12
2023 and each year thereafter, the Bureau of Finance and Management The state auditor 13
shall transfer each month thirty-six percent of the monthly state capital construction fund 14
revenues from the state capital construction fund to the state highway fund. 15
Section 23. That § 5-27-6 be AMENDED: 16
5-27-6. During fiscal year 2019, the Bureau of Finance and Management shall 17
transfer each month sixty-four percent of the monthly state capital construction fund 18
revenues from the state capital construction fund to the water and environment fund. In 19
fiscal year 2020, the Bureau of Finance and Management shall transfer each month sixty-20
two percent of the monthly state capital construction fund revenues from the state capital 21
construction fund to the water and environment fund. In fiscal year 2021, the Bureau of 22
Finance and Management shall transfer each month sixty-one percent of the monthly state 23
capital construction fund revenues from the state capital construction fund to the water 24
and environment fund. In fiscal year 2022, the Bureau of Finance and Management shall 25
transfer each month sixty-one percent of the monthly state capital construction fund 26
revenues from the state capital construction fund to the water and environment fund. 27
Beginning in fiscal year 2023 and each year thereafter, the Bureau of Finance and 28
Management The state auditor shall transfer each month sixty-four percent of the monthly 29
state capital construction fund revenues from the state capital construction fund to the 30
water and environment fund. 31
Section 24. That § 10-12-3 be AMENDED: 32 25.507.26 10 HJR5007
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10-12-3. The board of equalization, in determining the rate of tax to be levied 1
against the taxable property in the state, shall ascertain the amount in dollars necessary 2
to meet: 3
(1) Meet the estimated ordinary expenses of the state for each year; the amount in 4
dollars necessary to pay 5
(2) Pay the deficiency of the preceding years and the amount in dollars necessary to 6
pay; and 7
(3) Pay the annual interest and to provide a debt service fund for the payment of the 8
public debt of the state. 9
When these amounts have been ascertained, the board shall require the 10
commissioner of finance and management state auditor to certify to such the board of 11
equalization, the amounts available in the general fund of the state and the probable 12
amounts to become available during the year, from whatever source other than the 13
general property tax. The board of equalization shall then shall deduct from the amount 14
ascertained to be necessary to meet the requirements of the state for the purposes 15
hereinbefore enumerated, the amounts so certified to it by the commissioner of finance 16
and management auditor and as ascertained and determined by such the board as being 17
or to become available in the general fund, and shall then levy a tax against the taxable 18
property in the state sufficient only to provide the revenues necessary to equal the balance 19
of the sum ascertained to be necessary to meet the requirements of the state for the 20
purposes hereinbefore enumerated. 21
Section 25. That § 28-1-67 be AMENDED: 22
28-1-67. The state treasurer, on behalf of the Department of Social Services, with 23
the approval of the Bureau of Finance and Management state auditor, shall establish an 24
account or system of accounts in the state treasury for the receipt and disbursement of 25
child support enforcement collections. 26
The department shall pay all moneys due to the federal government, county, or 27
other local governmental units of South Dakota this state, or other state and local 28
governmental units as well as all moneys due to private persons who are not recipients of 29
aid under the South Dakota Title IV-a plan, and all other collections shall must be remitted 30
to the general fund on a quarterly basis, with each remittance to be due thirty days after 31
the end of each fiscal quarter. 32 25.507.26 11 HJR5007
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Section 26. Pursuant to § 2-16-9, code counsel of the Legislative Research Council shall 1
transfer chapter 4-10 as follows: § 4-10-1 to § 1-10-1.1; § 4-10-2 to § 1-10-2.1; § 4-10-3 2
to § 1-9-5; § 4-10-4 to § 1-9-6; § 4-10-5 to § 1-9-7; § 4-10-6 to § 1-9-8; § 4-10-7 to § 1-3
9-9; § 4-10-8 to § 1-9-11; § 4-10-9 to § 1-9-12; § 4-10-10 to § 1-9-13; and § 4-10-11 to § 4
1-9-14. 5
Pursuant to § 2-16-9, the Code Commission and code counsel of the Legislative Research 6
Council shall correct and integrate all cross references from chapter 4-10 that have been 7
transferred pursuant to this Act. 8
Section 27. Pursuant to § 2-16-9, the Code Commission and code counsel of the Legislative 9
Research Council are instructed to amend the following sections by striking "Bureau of Finance 10
and Management" and inserting "Bureau of Management and Budget" and by striking 11
"commissioner of the Bureau of Finance and Management" and inserting "commissioner of 12
the Bureau of Management and Budget": 13
Title 1: 14
1-16A-3.1; 1-16A-97; 1-16B-33; 1-25-1.3; 1-25-1.4; 1-26-4; 1-26-4.2; 1-27-45; 1-33-15
3; 1-33-7; 1-56-2; 1-56-5 16
17
Title 3: 18
3-6D-4; 3-8-6; 3-8-6.2; 3-9-1; 3-9-2; 3-9-18; 3-9-19; 3-10-8; 3-12C-101 19
20
Title 4: 21
4-1-1; 4-3-28; 4-5-22; 4-5-30; 4-7-2; 4-7-4; 4-7-5; 4-7-6; 4-7-8; 4-7-9; 4-7-10; 4-7-22
12; 4-7-15; 4-7-16; 4-7-17; 4-7-18; 4-7-19; 4-7-20; 4-7-25; 4-7-25.1; 4-7-26; 4-7-48; 23
4-7-49; 4-7-50; 4-7-51; 4-7-52; 4-8-19; 4-8-20; 4-8-21; 4-8-22; 4-8-25; 4-8-28; 4-8A-24
7; 4-8A-8; 4-8A-9; 4-8A-11; 4-8A-16; 4-8B-10; 4-9-2 25
26
Title 5: 27
5-2-19; 5-12-1.1; 5-12-47.2; 5-27-4 28
29
Title 11: 30
11-11-38; 11-11-76 31
32
Title 13: 33 25.507.26 12 HJR5007
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13-51-8.1; 13-51-8.2; 13-53-17 1
2
Title 23A: 3
23A-51-13 4
5
Title 26 6
26-13-6 7
8
Title 34: 9
34-53-15 10
11
Title 37: 12
37-2-24 13
14
Title 49: 15
49-16B-4 16
Section 28. Pursuant to § 2-16-9, the Code Commission and code counsel of the Legislative 17
Research Council shall make the name and title changes necessary to correlate and integrate 18
the organizational changes made by this Act into the South Dakota Codified Laws. 19
Section 29. Sections 1 through 28, inclusive, of this Act are effective beginning January 1, 20
2025. 21
22
Beginning on July 1, 2025, the state auditor and the Bureau of Finance and Management shall 23
make all preparations necessary for the implementation of the provisions of this Act. 24