South Dakota 2025 Regular Session

South Dakota Senate Bill SB61 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25.314.33 100th Legislative Session 61
	1	+	25.314.32 100th Legislative Session 61
2	2
3	3
4	4		2025 South Dakota Legislature
5	5		Senate Bill 61
6		-	~~ENROLLED~~
	6	+	HOUSE ENGROSSED
7	7
8		-	AN ACT
	8	+	This bill has been extensively amended (hoghoused) and may no longer be
	9	+	consistent with the original intention of the sponsor.
9	10
10	11
11		-	ENTITLED An Act to modify the authority of the Board of Internal Control.
12		-	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
13		-	Section 1. That § 1-56-1 be AMENDED:
14		-	1-56-1. Terms used in this chapter mean:
15		-	(1) "Board," the State Board of Internal Control;
16		-	(2) "Code of conduct," a set of ethical principles and guidelines that constitutes
17		-	appropriate behavior within a state agency;
18		-	(3) "Internal control," a process that integrates the plans, activities, policies, attitudes,
19		-	procedures, systems, resources, and efforts of a state agency and that is designed
20		-	to provide reasonable assurance that the state agency will achieve its objectives
21		-	and missions and to detect and prevent financial malfeasance;
22		-	(4) "Internal control officer," the individual designated by each state agency to oversee
23		-	the implementation, monitoring, and reporting of internal control systems in
24		-	accordance with the board's guidelines and standards;
25		-	(5) "Pass-through grant," a grant awarded by a federal entity to a state agency and
26		-	transferred or passed to a sub-recipient by the state;
27		-	(6) "State agency," any constitutional officer, the Board of Regents, and any
28		-	department, division, bureau, board, commission, committee, authority, or agency
29		-	under the authority of the Governor;
30		-	(7) "Sub-recipient," an entity that expends a pass-through grant.
31		-	Section 2. That § 1-56-2 be AMENDED:
32		-	1-56-2. There is hereby created a State Board of Internal Control that consists of:
33		-	(1) Four individuals representing state agencies under the control of the Governor,
34		-	appointed by the Governor; 25.314.33 2 61
35		-	SB61 ENROLLED
36		-	(2) The commissioner of the Bureau of Finance and Management, who serves as the
37		-	chair;
38		-	(3) The state auditor; and
39		-	(4) An individual appointed by the executive director of the Board of Regents.
40		-	Each individual appointed by the Governor serves a three-year term, provided that
41		-	the initial appointments are for staggered terms. Any four of the seven members
42		-	constitutes a quorum.
43		-	Section 3. That § 1-56-3 be AMENDED:
44		-	1-56-3. The board may promulgate rules, pursuant to chapter 1-26, to implement,
45		-	manage, and provide oversight of a system of internal control in accordance with internal
46		-	control standards.
47		-	Section 4. That § 1-56-6 be AMENDED:
48		-	1-56-6. The board shall:
49		-	(1) Establish and maintain guidelines for an effective system of internal control to be
50		-	implemented by state agencies that is in accordance with internal control
51		-	standards;
52		-	(2) Establish and maintain a code of conduct for use by state agencies;
53		-	(3) Establish and maintain a conflict-of-interest policy for use by state agencies;
54		-	(4) Evaluate and test the effectiveness of internal controls in state agencies;
55		-	(5) Access all relevant records, data, and documents from state agencies to carry out
56		-	the board's responsibilities; and
57		-	(6) Review and assess whether internal controls are working as intended and make
58		-	recommendations for improvements.
59		-	Section 5. That § 1-56-8 be AMENDED:
60		-	1-56-8. Each state agency shall designate an internal control officer. The internal
61		-	control officer shall ensure the agency complies with the provisions of this chapter. Two
62		-	or more agencies may agree to designate a single individual as the internal control officer
63		-	for the agencies participating in the agreement. The board shall make available to each
64		-	internal control officer guidelines and standards that the state agency shall implement and
65		-	comply. The board may take other actions as necessary to carry out the pur pose and
66		-	intent of this chapter. 25.314.33 3 61
67		-	SB61 ENROLLED
68		-	Section 6. That a NEW SECTION be added to chapter 1-56:
69		-	Each state agency shall conduct an annual review of the agency's documented risk
70		-	and control matrix to assess the adequacy and effectiveness of the agency's internal
71		-	controls and risk mitigation strategies.
72		-	Following the review, each state agency shall submit the results to the Board of
73		-	Internal Control, including any updates to the agency's risk and control matrix.
74		-	Section 7. On July 1, 2025, the term of the individual appointed to the State Board of Internal
75		-	Control by the chief justice of the Supreme Court expires. 25.314.33 4 61
76		-	SB61 ENROLLED
77		-	An Act to modify the authority of the Board of Internal Control.
	12	+	Introduced by: The Chair of the Committee on Judiciary at the request of the Attorney General
78	13
79		-
80		-
81		-
82		-	I certify that the attached Act originated in
83		-	the:
84		-
85		-	Senate as Bill No. 61
86		-
87		-
88		-
89		-	Secretary of the Senate
90		-
91		-
92		-
93		-
94		-	President of the Senate
95		-
96		-	Attest:
97		-
98		-
99		-
100		-
101		-	Secretary of the Senate
102		-
103		-
104		-
105		-
106		-	Speaker of the House
107		-
108		-	Attest:
109		-
110		-
111		-
112		-
113		-
114		-	Chief Clerk
115		-
116		-
117		-
118		-	Senate Bill No. 61
119		-	File No. ____
120		-	Chapter No. ______
121		-
122		-
123		-
124		-	Received at this Executive Office
125		-	this _____ day of _____________,
126		-
127		-	2025 at ____________M.
128		-
129		-
130		-
131		-	By
132		-	for the Governor
133		-
134		-
135		-	The attached Act is hereby
136		-	approved this ________ day of
137		-	______________, A.D., 2025
138		-
139		-
140		-
141		-
142		-
143		-	Governor
144		-
145		-	STATE OF SOUTH DAKOTA ,
146		-	ss.
147		-	Office of the Secretary of State
148		-
149		-
150		-	Filed ____________, 2025
151		-	at _________ o'clock __M.
152		-
153		-
154		-
155		-
156		-
157		-	Secretary of State
158		-
159		-
160		-
161		-	By
162		-	Asst. Secretary of State
163		-
164		-
	14	+	Underscores indicate new language.
	15	+	Overstrikes indicate deleted language.
	16	+	An Act to modify the authority of the Board of Internal Controls. 1
	17	+	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2
	18	+	Section 1. That § 1-56-1 be AMENDED: 3
	19	+	1-56-1. Terms used in this chapter mean: 4
	20	+	(1) "Board," the State Board of Internal Control; 5
	21	+	(2) "Code of conduct," a set of ethical principles and guidelines that constitutes 6
	22	+	appropriate behavior within an organization a state agency; 7
	23	+	(3) "Internal control," a process that integrates the plans, activities, policies, attitudes, 8
	24	+	procedures, systems, resources, and efforts of an organization a state agency and 9
	25	+	that is designed to provide reasonable assurance that the organization state agency 10
	26	+	will achieve its objectives and missions and to detect and prevent financial 11
	27	+	malfeasance; 12
	28	+	(4) "Internal control officer," the individual designated by each state agency to oversee 13
	29	+	the implementation, monitoring, and reporting of internal control systems in 14
	30	+	accordance with the board's guidelines and standards; 15
	31	+	(5) "Pass-through grant," a grant awarded by a federal entity to the state entity a state 16
	32	+	agency and transferred or passed to a sub-recipient by the state; 17
	33	+	(5)(6) "State agency," the Legislature, any constitutional officer, the Unified Judicial 18
	34	+	System Board of Regents, and any department, division, bureau, board, 19
	35	+	commission, committee, authority, or agency of the State of South Dakota under 20
	36	+	the authority of the Governor; 21
	37	+	(6)(7) "Sub-recipient," an entity that expends a pass-through grant. 22
	38	+	Section 2. That § 1-56-2 be AMENDED: 23
	39	+	1-56-2. There is hereby created a State Board of Internal Control that consists of 24
	40	+	seven members. Three members shall represent : 25 25.314.32 2 61
	41	+	Underscores indicate new language.
	42	+	Overstrikes indicate deleted language.
	43	+	(1) Four individuals representing state agencies under the control of the Governor and 1
	44	+	shall be, appointed by the Governor. Each member appointed by the Governor shall 2
	45	+	serve a three-year term. However, the initial appointments shall be for staggered 3
	46	+	terms. The remaining members shall be the; 4
	47	+	(2) The commissioner of the Bureau of Finance and Management, the who serves as 5
	48	+	the chair; 6
	49	+	(3) The state auditor, a; and 7
	50	+	(4) An individual appointed by the executive director of the Board of 8
	51	+	Regentsadministrator's designee, and a member appointed by the Chief Justice of 9
	52	+	the Supreme Court. 10
	53	+	Each individual appointed by the Governor serves a three-year term, provided that 11
	54	+	the initial appointments are for staggered terms. Any four of the seven members 12
	55	+	constitutes a quorum. The commissioner of the Bureau of Finance and Management shall 13
	56	+	be chair of the board. 14
	57	+	Section 3. That § 1-56-3 be AMENDED: 15
	58	+	1-56-3. The board may promulgate rules, pursuant to chapter 1-26, to implement, 16
	59	+	manage, and provide oversight of a system of internal control in accordance with internal 17
	60	+	control standards. 18
	61	+	Section 4. That § 1-56-6 be AMENDED: 19
	62	+	1-56-6. The board shall establish and maintain: 20
	63	+	(1) Guidelines Establish and maintain guidelines for an effective system of internal 21
	64	+	control to be implemented by state agencies that is in accordance with internal 22
	65	+	control standards; 23
	66	+	(2) A Establish and maintain a code of conduct for use by state agencies excluding the 24
	67	+	Unified Judicial System; and; 25
	68	+	(3) A conflict of interest Establish and maintain a conflict-of-interest policy for use by 26
	69	+	state agencies excluding the Unified Judicial System; 27
	70	+	(4) Evaluate and test the effectiveness of internal controls in state agencies; 28
	71	+	(5) Access all relevant records, data, and documents from state agencies to carry out 29
	72	+	the board's responsibilities; and 30
	73	+	(6) Review and assess whether internal controls are working as intended and make 31
	74	+	recommendations for improvements . 32 25.314.32 3 61
	75	+	Underscores indicate new language.
	76	+	Overstrikes indicate deleted language.
	77	+	The Unified Judicial System may implement the code of conduct and conflict of 1
	78	+	interest policy in accordance with the code of judicial conduct and employee policies 2
	79	+	utilized within the Unified Judicial System. 3
	80	+	Section 5. That § 1-56-8 be AMENDED: 4
	81	+	1-56-8. Each state agency shall designate an internal control officer. The internal 5
	82	+	control officer shall ensure the agency complies with the provisions of this chapter. Two 6
	83	+	or more agencies may agree to designate a single individual as the internal control officer 7
	84	+	for the agencies participating in the agreement. The board shall make available to each 8
	85	+	internal control officer guidelines and standards that the state agency shall implement and 9
	86	+	comply. The board may take other actions as necessary to carry out the purpose and 10
	87	+	intent of this chapter. 11
	88	+	Section 6. That a NEW SECTION be added to chapter 1-56: 12
	89	+	Each state agency shall conduct an annual review of the agency's documented risk 13
	90	+	and control matrix to assess the adequacy and effectiveness of the agency's internal 14
	91	+	controls and risk mitigation strategies. 15
	92	+	Following the review, each state agency shall submit the results to the Board of 16
	93	+	Internal Control, including any updates to the agency's risk and control matrix. 17
	94	+	Section 7. On July 1, 2025, the term of the individual appointed to the State Board of Internal 18
	95	+	Control by the chief justice of the Supreme Court expires. 19