On page 1, line 1, of the Introduced bill, delete " authority" and insert " duties and administration"
On page 1, line 1, of the Introduced bill, after "the" insert " State"
On page 1, line 1, of the Introduced bill, delete " Controls" and insert " Control"
On page 1, line 3, of the Introduced bill, after "Dakota:" delete "Section 1. That § 1-56-3 be AMENDED:"
On page 1, line 4, of the Introduced bill, after "AMENDED:" delete "1-56-3. "
On page 1, line 4, of the Introduced bill, after "1-56-3. " delete "The board may promulgate rules, pursuant to chapter 1-26, to implement, manage, and ensure compliance with a system of internal control in accordance with internal control standards."
On page 1, after line 6, of the Introduced bill, insert: "
Section 1. That § 1-56-1 be AMENDED:
1-56-1. Terms used in this chapter mean:
(1) "Board," the State Board of Internal Control;
(2) "Code of conduct,"
a set of ethical principles and guidelines that constitutes
appropriate behavior within
an organization
a state agency;
(3) "Internal control,"
a process that integrates the plans, activities, policies, attitudes,
procedures, systems, resources, and efforts of an organization and
that is
procedures within a state agency
designed to provide reasonable assurance that the organization will
achieve its objectives
and missions and to detect and prevent
while identifying and preventing
financial malfeasance;
(4) "Pass-through grant,"
a grant awarded by a federal entity to
the state entity
a state agency
and transferred or passed to a sub-recipient by the state;
(5) "State agency,"
the Legislature, any
Any
constitutional officer,
the Unified Judicial System, and
any department, division, bureau, board, commission, committee,
authority, or agency
of the State of South Dakota
under the authority of the Governor, and the Board of Regents;
(6) "Sub-recipient," an entity that expends a pass-through grant."
On page 1, after line 6, of the Introduced bill, insert: "
Section 2. That § 1-56-2 be AMENDED:
1-56-2. There
is hereby created a State Board of Internal Control that consists of
seven members. Three members shall represent:
(1) Three
individuals representing
state agencies under
the
control of the Governor
and shall be,
appointed by the Governor.
Each member appointed by the Governor shall serve a three-year term.
However, the initial appointments shall be for staggered terms. The
remaining members shall be the;
(2) The
commissioner of the Bureau of Finance and Management,
the;
(3) The
state auditor,
a Board of Regents administrator's designee, and a member appointed
by the Chief Justice of the Supreme Court,
who shall serve as the chair;
(4) The executive director of the Board of Regents; and
(5) The state treasurer.
The
term of each individual appointed by the Governor is three years and
must be staggered.
Any four of the seven members constitutes a quorum.
The commissioner of the Bureau of Finance and Management shall be
chair of the board."
On page 1, after line 6, of the Introduced bill, insert: "
Section 3. That § 1-56-4 be AMENDED:
1-56-4. The
board shall
meet monthly for the first twelve months, and shall
meet at least quarterly
after the first
every
year. A record of the proceedings of the board
shall
must be
kept pursuant to § 1-25-3."
On page 1, after line 6, of the Introduced bill, insert: "
Section 4. That § 1-56-5 be AMENDED:
1-56-5. The
Bureau of Finance and Management
state auditor
shall provide administrative support to the board.
If necessary, the board shall seek the advice of the
auditor-general."
On page 1, line 8, of the Introduced bill, after "maintain" insert ", for use by each state agency"
On page 1, line 15, of the Introduced bill, after "agencies" delete ", excluding the Unified Judicial System"
On page 1, line 17, of the Introduced bill, delete " conflict of interest" and insert " conflict-of-interest"
On page 1, line 17, of the Introduced bill, after "agencies" delete ", excluding the Unified Judicial System"
On page 1, line 19, of the Introduced bill, after "System." delete "The Unified Judicial System may implement the code of conduct and conflict of interest policy in accordance with the code of judicial conduct and employee policies utilized within the Unified Judicial System."
On page 1, after line 21, of the Introduced bill, insert: "
Section 6. That a NEW SECTION be added to chapter 1-56:
The state auditor shall employ an internal control auditor who shall:
(1) Make available to each state agency the guidelines, policies, and code of conduct developed by the board under § 1-56-6; and
(2) Periodically inspect and review the implementation by each state agency of the guidelines, policies, and code of conduct developed under § 1-56-6.
The internal control auditor shall work with each state agency internal control officer, as designated under § 1-56-8, to ensure that the state agency implements the guidelines, policies, and code of conduct developed under § 1-56-6. Each state agency shall provide the internal control auditor with access to any state agency personnel or facility and any data, document, information, policy, or record needed to ensure adequate procedures are being implemented to comply with the guidelines, policies, and code of conduct developed under § 1-56-6. If a state agency fails to comply with the access requirements provided under this section, the state auditor may initiate action in accordance with chapter 21-34.
The state auditor may employ and compensate necessary personnel to assist the internal control auditor in performing the duties of this section."
On page 2, line 5, of the Introduced bill, after "agencies" insert ". Each internal control officer shall cooperate with the internal control auditor to implement the requirements of this chapter"
On page 2, after line 10, of the Introduced bill, insert: "
Section 9. That § 1-56-3 be REPEALED.
The
board may promulgate rules, pursuant to chapter 1-26, to implement a
system of internal control in accordance with internal control
standards."
On page 2, after line 10, of the Introduced bill, insert: "
Section 10. On July 1, 2025, the term of the individual appointed to the State Board of Internal Control by the chief justice of the Supreme Court expires."