25.407.11 100th Legislative Session 145
2025 South Dakota Legislature
Senate Bill 145
SENATE APPROPRIATIONS ENGROSSED
Introduced by: Senator Karr
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to require legislative approval of real property leases that are necessary for 1
the operation of state government and exceed specified durations or rental 2
payments. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 4
Section 1. That § 1-33-9 be AMENDED: 5
1-33-9. The Bureau of Human Resources and Administration shall: 6
(1) Provide workers' compensation coverage and a group health and flexible benefit 7
plan for all state employees unless such the duties are delegated to another agency 8
pursuant to chapter 1-24; 9
(2) Administer recruitment and classification for all civil service employees unless 10
suchthe duties are delegated to another agency pursuant to chapter 1-24; 11
(3) Provide human resource management and programs including programs governing 12
human resource planning, training and development, internships, performance 13
evaluation, employee assessment and testing, classification, compensation, 14
recruitment, and other matters relating to human resource management for all of 15
the executive branch of state government under the control of the Governor and 16
by agreement for other state government agencies; 17
(4) Perform all administrative functions for the Civil Service Commission; 18
(5) Employ such staff as are necessary to perform its duties; 19
(6) Contract as is necessary to perform its duties; 20
(7) Keep an exact and true inventory of all property, real and personal, belonging to 21
the state and promulgate rules pursuant to chapter 1-26 enumerating the types 22
and classes of public personal property to be included in the inventory required by 23
§ 5-24-1; 24
(8) Administer the procurement of supplies, services, and public improvements as 25
prescribed in chapters 5-18A, 5-18B, and 5-18D; 26 25.407.11 2 145
Underscores indicate new language.
Overstrikes indicate deleted language.
(9) Supervise such central administrative services as transportation, mail, records 1
management, and document reproduction services, and other central 2
administrative services, and make provisions for the supplying of office supplies 3
and furniture; 4
(10) Maintain the buildings and grounds of the capitol complex and install central 5
facilities to be used by all state agencies under rules the bureau promulgates 6
pursuant to chapter 1-26; 7
(11) Contract for the provision of food services, candy, and beverages in the capitol 8
complex; 9
(12) Supervise the administration of the Office of Hearings Examiners; 10
(13) Administer the federal surplus property allotted to the state; 11
(14) Provide for the lease of real property necessary for the operation of state 12
government, in accordance with the limitations set forth in section 3 of this Act; 13
(15) Administer a program of risk management for state government; 14
(16) Contract for services required by multiple state agencies, if the contract improves 15
the efficiency of state government; and 16
(17) Take any other function as may be required by statute, executive order, or 17
administrative action. 18
Section 2. That a NEW SECTION be added to chapter 1-33: 19
Terms used in section 3 of this Act mean: 20
(1) "Base rent," the amount paid by the state to a party for the use of real property 21
pursuant to the terms of a written lease. "Base rent" does not include expenses or 22
lease charges for taxes, insurance, utilities, maintenance, repairs, common area 23
charges, and improvements; and 24
(2) "Long-term lease," any proposed real property lease by the state where the initial 25
term of the lease exceeds a commitment of fifteen years and the base rent due 26
during the initial term either exceeds $5,000,000 in total for the rental payments 27
due during the term of the lease or $50,000 per month during the term of the 28
lease. 29
Section 3. That a NEW SECTION be added to chapter 1-33: 30
Before the Bureau of Human Resources and Administration may enter a long -term 31
lease on behalf of the state, the Legislature must authorize the proposed long-term lease. 32 25.407.11 3 145
Underscores indicate new language.
Overstrikes indicate deleted language.
The legislative authorization must be in the form of a concurrent resolution, adopted by 1
both chambers of the Legislature. 2
To be a valid legislative authorization under this section, the concurrent resolution 3
must only contain content related to the following: 4
(1) The maximum initial term of the proposed long-term lease; 5
(2) The maximum amount of base rent for the initial term of the proposed long -term 6
lease; 7
(3) A description of the project for which the proposed long-term lease is required; 8
and 9
(4) The county and municipality, if any, where the project is to be located. 10
The Bureau of Human Resources and Administration may not, without receiving 11
legislative authorization as required by this section, enter or otherwise authorize the lease 12
of real property necessary for the operation of state government under any long -term 13
lease. 14
A lease of real property for a proposed project at a single site may not be divided 15
or structured as multiple leases to avoid the requirements of this section. 16
A lease renewal or extension or any amendment to a long -term lease after the 17
initial lease term ends is excluded from the requirements of this section, if the renewal, 18
extension, or amendment does not exceed fifteen years and the base rent due resulting 19
from the renewal, extension, or amendment does not either exceed $5,000,000 in total 20
for the rental payments due during the new term or $50,000 per month during the new 21
term. 22
Any long-term lease entered in violation of this section is voidable in a legal action 23
initiated by the attorney general. 24
Section 4. This Act applies to long-term leases entered into on or after July 1, 2025. 25