25.407.12 100th Legislative Session 145
2025 South Dakota Legislature
Senate Bill 145
ENROLLED
AN ACT
ENTITLED An Act to require legislative approval of real property leases that are
necessary for the operation of state government and exceed specified
durations or rental payments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 1-33-9 be AMENDED:
1-33-9. The Bureau of Human Resources and Administration shall:
(1) Provide workers' compensation coverage and a group health and flexible benefit
plan for all state employees unless the duties are delegated to another agency
pursuant to chapter 1-24;
(2) Administer recruitment and classification for all civil service employees unless the
duties are delegated to another agency pursuant to chapter 1-24;
(3) Provide human resource management and programs including programs governing
human resource planning, training and development, internships, performance
evaluation, employee assessment and testing, classification, compensation,
recruitment, and other matters relating to human resource management for all of
the executive branch of state government under the control of the Governor and
by agreement for other state government agencies;
(4) Perform all administrative functions for the Civil Service Commission;
(5) Employ staff as necessary to perform its duties;
(6) Contract as is necessary to perform its duties;
(7) Keep an exact and true inventory of all property, real and personal, belonging to
the state and promulgate rules pursuant to chapter 1-26 enumerating the types
and classes of public personal property to be included in the inventory required by
§ 5-24-1;
(8) Administer the procurement of supplies, services, and public improvements as
prescribed in chapters 5-18A, 5-18B, and 5-18D; 25.407.12 2 145
SB145 ENROLLED
(9) Supervise transportation, mail, records management, document reproduction
services, and other central administrative services, and make provisions for the
supplying of office supplies and furniture;
(10) Maintain the buildings and grounds of the capitol complex and install central
facilities to be used by all state agencies under rules the bureau promulgates
pursuant to chapter 1-26;
(11) Contract for the provision of food services, candy, and beverages in the capitol
complex;
(12) Supervise the administration of the Office of Hearings Examiners;
(13) Administer the federal surplus property allotted to the state;
(14) Provide for the lease of real property necessary for the operation of state
government, in accordance with the limitations set forth in section 3 of this Act;
(15) Administer a program of risk management for state government;
(16) Contract for services required by multiple state agencies, if the contract improves
the efficiency of state government; and
(17) Take any other function as may be required by statute, executive order, or
administrative action.
Section 2. That a NEW SECTION be added to chapter 1-33:
Terms used in section 3 of this Act mean:
(1) "Base rent," the amount paid by the state to a party for the use of real property
pursuant to the terms of a written lease. "Base rent" does not include expenses or
lease charges for taxes, insurance, utilities, maintenance, repairs, common area
charges, and improvements; and
(2) "Long-term lease," any proposed real property lease by the state where the initial
term of the lease exceeds a commitment of fifteen years and the base rent due
during the initial term either exceeds $5,000,000 in total for the rental payments
due during the term of the lease or $50,000 per month during the term of the
lease.
Section 3. That a NEW SECTION be added to chapter 1-33:
Before the Bureau of Human Resources and Administration may enter a long -term
lease on behalf of the state, the Legislature must authorize the proposed long-term lease.
The legislative authorization must be in the form of a concurrent resolution, adopted by
both chambers of the Legislature. 25.407.12 3 145
SB145 ENROLLED
To be a valid legislative authorization under this section, the concurrent resolution
must only contain content related to the following:
(1) The maximum initial term of the proposed long-term lease;
(2) The maximum amount of base rent for the initial term of the proposed long -term
lease;
(3) A description of the project for which the proposed long-term lease is required;
and
(4) The county and municipality, if any, where the project is to be located.
The Bureau of Human Resources and Administration may not, without receiving
legislative authorization as required by this section, enter or otherwise authorize the lease
of real property necessary for the operation of state government under any long -term
lease.
A lease of real property for a proposed project at a single site may not be divided
or structured as multiple leases to avoid the requirements of this section.
A lease renewal or extension or any amendment to a long -term lease after the
initial lease term ends is excluded from the requirements of this section, if the renewal,
extension, or amendment does not exceed fifteen years and the base rent due resulting
from the renewal, extension, or amendment does not either exceed $5,000,000 in total
for the rental payments due during the new term or $50,000 per month during the new
term.
Any long-term lease entered in violation of this section is voidable in a legal action
initiated by the attorney general.
Section 4. This Act applies to long-term leases entered into on or after July 1, 2025. 25.407.12 4 145
SB145 ENROLLED
An Act to require legislative approval of real property leases that are necessary for the
operation of state government and exceed specified durations or rental payments.
I certify that the attached Act originated in
the:
Senate as Bill No. 145
Secretary of the Senate
President of the Senate
Attest:
Secretary of the Senate
Speaker of the House
Attest:
Chief Clerk
Senate Bill No. 145
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2025 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2025
Governor
STATE OF SOUTH DAKOTA ,
ss.
Office of the Secretary of State
Filed ____________, 2025
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State