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26.536.29 101st Legislative Session 73
2026 South Dakota Legislature
Senate Bill 73
ENROLLED
AN ACT
ENTITLED An Act to revise provisions relating to state financial practices.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 1-24A-1 be AMENDED:
1-24A-1. Each agency shall file with or make available electronically to the state
auditor a copy of any consulting contract entered into by the state agency with a
nongovernmental party within five days after the contract is approved and finalized by the
contracting parties.
Section 2. That § 1-24A-3 be AMENDED:
1-24A-3. For purposes of this chapter, "consulting contract" means a written
contract or written agreement for consulting services to the state paid out of contractual
services accounts, as specified by the commissioner of finance and management pursuant
to subdivision 4-7-1(6).
Section 3. That § 1-27-13 be AMENDED:
1-27-13. The head of each agency shall submit to the commissioner of human
resources and administration, in accordance with the procedures, rules, and standards
established by the commission, schedules proposing the length of time each state record
series warrants retention for administrative, fiscal, or legal purposes, after it has been
received by the agency, provided that original claims, invoices, and vouchers submitted
to the state auditor for payment must be retained for at least seven years.
Section 4. That § 1-27-45 be AMENDED:
1-27-45. The state shall maintain a searchable internet website for posting and
accessing the public records and financial information of the state. The content and
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operation of the website must be administered jointly by the Bureau of Human Resources
and Administration, Bureau of Finance and Management, and Bureau of Information and
Telecommunications.
Section 5. That § 1-27-46 be AMENDED:
1-27-46. The state shall display on the searchable internet website, created
pursuant to § 1-27-45, copies of each written contract:
(1) For supplies, services, or professional services of ten thousand dollars or more;
(2) Filed with the state auditor pursuant to § 1-24A-1; and
(3) Filed with the attorney general pursuant to § 1-11-15.
Each contract must be displayed electronically within sixty days following
commencement of the contract term and for at least the retention period prescribed by
§ 1-27-4.1.
For purposes of this section, a written contract does not include any purchase order
issued against formal statewide contracts available for the use of all state agencies.
Section 6. That § 3-9-1 be AMENDED:
3-9-1. In lieu of actual transportation expenses, the State Board of Finance may
fix the maximum mileage reimbursement rate for using a privately owned motor vehicle
on state business. Except as otherwise provided in this section and § 3-9-1.1, the
maximum mileage reimbursement rate is fifty-one cents per mile or the standard mileage
rate for business authorized by the United States Internal Revenue Service as of October
first each year, whichever is greater rounded up to the nearest penny. If there is not a
state vehicle equipped for the transportation of an individual with special needs, the
maximum mileage reimbursement rate is:
(1) If a privately owned passenger or cargo van, pickup truck, or sport utility vehicle
is used to transport an individual with special needs for state business, sixty-eight
cents per mile or one -hundred-and-thirty percent, rounded up to the nearest
penny, of the standard mileage rate for business authorized by the United States
Internal Revenue Service as of October first each year, whichever is greater; or
(2) If any other vehicle is used to transport an individual with special needs for state
business, fifty -one cents per mile or the standard mileage rate for business
authorized by the United States Internal Revenue Service as of October first each
year, whichever is greater rounded up to the nearest penny.
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The mileage reimbursement rate covers all expenses incidental to the operation of
a motor vehicle.
The Bureau of Finance and Management shall publish in writing the mileage
reimbursement rate to be effective as of October first each year. The state auditor shall
issue warrants for using a privately owned motor vehicle on state business at the rate
specified upon the sworn statement of the party using the vehicle.
For purposes of this section, "individual with special needs" means an individual
with a disability that makes the individual unable to operate an unmodified motor vehicle
but allows the individual to operate a personal motor vehicle modified to accommodat e
the disability.
Section 7. That § 3-9-1.1 be AMENDED:
3-9-1.1. If an Office of Fleet and Travel Management or a Department of
Transportation pool motor vehicle is available within ten miles of an individual's place of
residence or headquarters station, but the individual uses a privately owned vehicle
instead for stat e business, the mileage reimbursement rate is forty -five percent of the
standard mileage rate for business authorized by the United States Internal Revenue
Service as of October first each year, rounded up to the nearest penny.
The Office of Fleet and Travel Management must approve mileage reimbursement
paid at the rate set pursuant to § 3-9-1 if there are Office of Fleet and Travel Management
or Department of Transportation pool motor vehicles available within ten miles of the
individual's place of residence or headquarters station.
This section does not apply to elected officers, departmental secretaries, and chairs
of state boards and commissions.
Section 8. That § 3-9-6 be AMENDED:
3-9-6. The Governor may delegate to each responsible officer of any other agency,
department, or institution the authority to grant consent for official travel outside this
state. The Governor may establish general guidelines for travel outside the state. For each
outside-the-state expenditure, there must be a record signed with either an original
handwritten signature or an electronic signature attached using a security procedure
capable of verifying the act of the person signing the record by the appropriate responsible
officer. State agencies are permitted to follow federal regulations for payment of travel
and other allowances to state employees, dependents of state employees, or to foreign
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nationals, if the travel and other allowances are funded entirely by federal or private grants
in support of international programs.
Section 9. That § 3-9-8 be AMENDED:
3-9-8. The state auditor may not issue a warrant for the payment of any expense
paid out by any department officer or employee of the state until the department officer
or employee has presented to the state auditor an itemized invoice and account of the
expenses, the authenticity of which must be duly verified under oath. The claims or
vouchers must be filed in, or made available electronically to, the Office of the State
Auditor, together with all receipts from the person to whom the payments were made,
provided that a receipt is required only upon a rule passed by the state auditor pursuant
to chapter 1-26.
Section 10. That § 4-9-2 be AMENDED:
4-9-2. All accounts, claims, and vouchers that are by law directed to be paid out
of the state treasury must be presented to, and examined and adjusted by, the state
auditor, provided that the Bureau of Finance and Management has authority to promulgate
rules, pursuant to chapter 1-26, under which the State Board of Regents may provide for
the processing of payrolls on an institutional basis. Budgeted funds may be transferred on
a monthly basis for this purpose.
Section 11. That § 4-9-4 be AMENDED:
4-9-4. Wherever any law of this state requires a claim or account against the state
or any political subdivision of the state to be verified or sworn to before an officer
authorized to administer oaths, prior to presentation or payment, it is sufficient
compliance with the law if the claimant, or authorized officer or agent of the claimant, in
lieu of verification before a notary public, signs with either an original handwritten
signature or an electronic signature attached using a security procedure capable of
verifying the act of the person signing the record acknowledging the following statement:
"I declare and affirm under the penalties of perjury that this claim has been examined by
me, and to the best of my knowledge and belief, is in all things true and correct."
Any individual who signs with either an original handwritten signature or an
electronic signature attached using a security procedure capable of verifying the act of the
person signing the record acknowledging a claim or account bearing the written or printed
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statement pursuant to this section, knowing the statement is false, in whole or in part, is
guilty of perjury.
Section 12. That § 4-9-8 be AMENDED:
4-9-8. The state auditor shall issue warrants that:
(1) Are payable at the state treasury;
(2) Are numbered consecutively;
(3) Specify the date of the issue; and
(4) State the name of the person to whom the warrant is payable.
The number, date of issue, and payee name of each warrant must be entered upon
a record and preserved by the auditor.
Section 13. That § 4-10-4 be AMENDED:
4-10-4. At the beginning of each month, the Bureau of Finance and Management
shall:
(1) Reconcile the state accounting system balances with the state treasurer's state
bank account records; and
(2) Provide the state treasurer electronic access to the reconciliation as soon as it is
completed.
Section 14. That § 4-10-6 be AMENDED:
4-10-6. The Bureau of Finance and Management shall provide to the state auditor,
in a timely manner upon request, electronic access to all budgetary accounting reports
that the state auditor considers necessary to carry out the financial functions of the
auditor's office. The state auditor shall review the budgetary accounting system and may
make recommendations for changes in the system to the Governor.
Section 15. That § 4-10-7 be AMENDED:
4-10-7. The state auditor shall maintain physical or electronic access to:
(1) Records of all public accounts and other documents that are by law made
returnable to the auditor's office; and
(2) Any other vouchers relative to the business of the office.
Section 16. That § 4-10-8 be AMENDED:
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4-10-8. Except as otherwise provided in this section, the state auditor has
discretion to destroy, without further approval or authorization from the records
destruction board, any:
(1) Warrant that has been microfilmed, as soon as the microfilm copy is verified as:
(a) An accurate and complete copy of the original;
(b) Clearly legible with viewing instruments; and
(c) Capable of being enlarged to produce either a positive or negative copy of
the approximate size of the original;
(2) Microfilm or electronic copies that are at least fifteen years old and have been
audited by the auditor-general; and
(3) Voucher, together with any supporting receipts, that is at least seven years old and
has been audited by the auditor-general.
A certified copy of a microfilmed or electronic record is an official record of the
state auditor for any purpose and may be used as evidence in any administrative agency
or court.
Nothing in this section affects the provisions of §§ 4-9-19 and 4-9-20.
Section 17. That § 5-18D-4 be AMENDED:
5-18D-4. An electronic sealed bid or proposal for a state contract may be
submitted only through an electronic procurement system authorized for use by the
Bureau of Finance and Management.
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An Act to revise provisions relating to state financial practices.
I certify that the attached Act originated in
the:
Senate as Bill No. 73
Secretary of the Senate
President of the Senate
Attest:
Secretary of the Senate
Speaker of the House
Attest:
Chief Clerk of the House
Senate Bill No. 73
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2026 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2026
Governor
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________, 2026
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State