STATE AFFAIRS AND GOVERNMENT

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CHAPTER 1

(HB 1065)

Civilian Conservation Corps Museum of South Dakota.


        ENTITLED, An Act to designate the Civilian Conservation Corps Museum of South Dakota in Hill City as the official Civilian Conservation Corps Museum of South Dakota.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-6 be amended by adding a NEW SECTION to read:

    The Civilian Conservation Corps Museum in Hill City is hereby designated as the official Civilian Conservation Corps Museum of South Dakota. No state funds may be provided for the operation or maintenance of the museum.

     Signed March 7, 2016
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CHAPTER 2

(SB 49)

Secretary of State fees revised and an appropriation.


        ENTITLED, An Act to revise certain fees collected by the secretary of state to make an appropriation for an online business registration and filing system, and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    If a document, statement, or report is filed in the Office of the Secretary of State pursuant to §§ 47-1A-122, 47-28-6, 47-34A-212, 48-7-206.1, and 48-7A-1208 and the document, statement, or report is not filed electronically, but is able to be filed electronically and is allowed to be filed electronically, an additional fee of fifteen dollars shall be collected. The fee collected pursuant to this section shall be deposited in the general fund.

    Section 2. That § 47-34A-212 be amended to read:

    47-34A-212. The secretary of state shall charge and collect for:

            (a)    Filing the articles of organization in the case of a domestic limited liability company, a filing fee of one hundred fifty dollars. Filing the articles of organization in the case of a foreign limited liability company, a filing fee of seven hundred fifty dollars;

            (b)    Deleted by SL 2004, ch 279, § 2.

            (c)    A reporting fee of fifty dollars, due and payable with the filing of each annual report. Each entity that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state.

    Section 3. That § 1-8-12 be amended to read:

    1-8-12. The secretary of state shall charge a fee of fifty dollars for any expedited service. Expedited service is defined as completion sooner than the normal course of business upon request. The office shall deposit any revenue from this fee into the financing statement and annual report filing fee fund.

    Section 4. That chapter 1-8 be amended by adding a NEW SECTION to read:

    The secretary of state may promulgate rules, pursuant to chapter 1-26, to establish a convenience fee. A convenience fee means a fee charged for the privilege of being able to file by paper or pay a fee by credit card, charge card, debit card, e-checks, or other form of electronic payment. The maximum fee that may be charged for the privilege of being able to file by paper is twenty dollars per filing. The maximum fee that may be charged for payment by credit card, charge card, debit card, e-checks, or other form of electronic payment shall be three percent of the transaction amount.

    Section 5. That § 47-1A-122 be amended to read:

    47-1A-122. The Office of the Secretary of State shall collect the following fees when the documents described in this section are delivered for filing:

            (1)    Articles of incorporation, $150;

            (2)    Application for use of indistinguishable name, $25;

            (3)    Application for reserved name, $25;

            (4)    Notice of transfer of reserved name, $15;

            (5)    Application for registered name, $25;

            (6)    Application for renewal of registered name, $15. A renewal application may be filed between the first day of October and the thirty-first day of December in each year and shall extend the registration for the following year;

            (7) to (9)    Repealed by SL 2008, ch 275, § 27;

            (10)    Articles of domestication, $150;

            (11)    Articles of charter surrender, $150;

            (12)    Articles of domestication and conversion, $150;

            (13)    Articles of entity conversion, $150;

            (14)    Amendment of articles of incorporation, $60;

            (15)    Restatement of articles of incorporation, $60;

            (16)    Articles of merger or share exchange, $60;

            (17)    Articles of dissolution, $10;

            (18)    Articles of revocation of dissolution, $10;

            (19)    Certificate of administrative dissolution, no charge;

            (20)    Application for reinstatement following administrative dissolution, plus any delinquent annual report filing fees for the period prior to before the reinstatement application, $300;

            (21)    Certificate of reinstatement, no charge;

            (22)    Certificate of judicial dissolution, no charge;

            (23)    Application for certificate of authority, $750;

            (24)    Application for amended certificate of authority, $250;

            (25)    Application for certificate of withdrawal, $10;

            (26)    Application for transfer of authority, $25;

            (27)    Certificate of revocation of authority to transact business, no charge;

            (28)    Annual report, $50. Each entity that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state;

            (29)    Articles of correction, $25;

            (30)    Application for certificate of existence or authorization, $20;

            (31)    Amended annual report, $25;

            (32)    Any other document required or permitted to be filed by this chapter, $20.

    The Office of the Secretary of State shall collect a fee of thirty dollars each time process is served on the Office of the Secretary of State under this chapter. The party to a proceeding causing service of process is entitled to recover this fee as costs if the party prevails in the proceeding.

    Section 6. That § 48-7A-1208 be amended to read:

    48-7A-1208. The provisions of § 1-8-10 notwithstanding, the fee for filing the statements and reports provided for in the following sections with the secretary of state is as follows:

            (1)    Section 48-7A-303, Statement of Authority, one hundred twenty-five dollars;

            (2)    Section 48-7A-304, Statement of Denial, ten dollars;

            (3)    Section 48-7A-704, Statement of Dissociation, ten dollars;

            (4)    Section 48-7A-805, Statement of Dissolution, ten dollars;

            (5)    Section 48-7A-907, Statement of Merger, sixty dollars;

            (6)    Section 48-7A-1001, Statement of Qualification, one hundred twenty-five dollars;

            (6A)    Section 48-7A-1001, Statement of Change, ten dollars;

            (7)    Section 48-7A-1003, Annual Report, fifty dollars. Each limited liability partnership, domestic or foreign, that does not file or refuses to file its annual report within the time prescribed is subject to a penalty of fifty dollars to be assessed by the secretary of state;

            (8)    Section 48-7A-1001.1, Statement of Amendment, fifteen dollars;

            (9)    Section 48-7A-1001.2, Statement of Cancellation, ten dollars;

            (10)    Section 48-7A-1102, Statement of Foreign Qualification, one hundred twenty-five dollars;

            (11)    Section 48-7A-1102.1, Statement of Amendment of Foreign Qualification, fifteen dollars;

            (12)    Section 48-7A-1102.2, Statement of Cancellation, ten dollars; and

            (13)    Filing any other statement, ten dollars.

    Section 7. That § 47-28-8 be amended to read:

    47-28-8. The secretary of state shall charge and collect for furnishing a certified copy of any document, instrument, or paper relating to a corporation, one dollar two dollars per page, and fifteen dollars for the certificate and affixing the seal thereto.

    Section 8. That § 1-8-10 be amended to read:

    1-8-10. The secretary of state shall charge the following fees for services performed in the Office of the Secretary of State and shall collect the fees in advance:

            (1)    For making a copy or transcript of any record, instrument, or paper on file in the office, one dollar two dollars per page;

            (2)    For filing and safekeeping of any instrument or paper required by law to be filed only, ten dollars; except the oath of office of members of the Legislature and legislative officers, employees and governmental officers, employees and agencies, for which there is no fee;

            (3)    For each commission, requisition, passport, or other document, signed by the Governor and attested by the secretary of state, under the great seal of the state, except commissions issued for executive appointment and extraditions, and making the proper record for the same, five dollars;

            (4)    For filing application, bond, and issuing commission of notary public, thirty dollars;

            (5)    For official certificate, attestation, and impression of the great seal, five twenty-five dollars;

            (6)    For filing or recording any other instrument or document, ten dollars; and

            (7)    For a certified copy of any document, instrument, or paper on file in the office, one dollar two dollars per page and fifteen dollars for the certificate and affixing the seal.

    Section 9. That § 37-11-1 be amended to read:

    37-11-1. Any person regularly engaging in or conducting a business in this state shall file a fictitious name statement unless one of the following apply:

            (1)    The name of the business plainly shows the true surname of each person interested in the business; or

            (2)    The name of the business is on file with the secretary of state in a required business filing.

    The fictitious name statement shall include the name, post office address, and residence address of each person interested in the business and the address where the main office of the business is to be maintained. The fictitious name statement shall be electronically filed with the secretary of state, or filed in paper form with any register of deeds in the state. The filing shall be renewed every fifth year thereafter. A fee of ten dollars shall be paid with each new filing and renewal. The fee shall be retained by the filing office receiving the filing deposited into the financing statement and annual report filing fee fund.

    Section 10. That § 37-11-2 be amended to read:

    37-11-2. A verified statement as described in § 37-11-1 shall be similarly filed upon any change of twenty-five percent or more of the ownership interest in the business. A fee of ten dollars shall be paid with each filing under this section. The fee shall be retained by the filing office receiving the filing deposited into the financing statement and annual report filing fee fund.

    Section 11. All fees collected by the secretary of state that are not specifically dedicated to the financing and annual report filing fee fund or for administering the concealed carry program pursuant to § 23-7-53 or for administering any concealed carry programs enacted by the Legislature after 2015, shall be deposited in the state general fund.

    Section 12. That § 57A-9-525 be amended to read:

    57A-9-525. (a) Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in subsection (b), is the amount specified in subsection (c), if applicable, plus:

            (1)    Twenty-five dollars if the record is communicated in writing and consists of one page, and five dollars for additional pages. One dollar of this fee shall be deposited into the financing statement and annual report filing fee fund;

            (2)    Twenty dollars if the record is communicated by internet. One dollar of this fee shall be deposited into the financing statement and annual report filing fee fund; and

            (3)    Twenty-five dollars if the record is communicated by another medium authorized by filing-office rule.

    (b) The secretary of state may request a fee for on-line services for UCC data images available on a subscription basis. The office shall deposit any revenue from this fee into the financing statement and annual report filing fee fund.

    (c) Except as otherwise provided in subsection (e), the fee for filing, whether communicated in writing, electronically, or another medium authorized by filing-office rule, and indexing an initial financing statement of the following kind is the amount specified in subsection (c), if applicable, plus:

            (1)    Forty dollars if the financing statement indicates that it is filed in connection with a public-finance transaction;

            (2)    Forty dollars if the financing statement indicates that it is filed in connection with a manufactured-home transaction.

    (c)(d) Except as otherwise provided in subsection (e), if a record is communicated in writing or electronically, the fee for each name more than one required to be indexed is three dollars.

    (d)(e) The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:

            (1)    Twenty dollars if the request is communicated in writing; and

            (2)    Ten dollars if the request is communicated by internet authorized by filing-office rule.

    Upon request the filing officer shall furnish a copy of any filed financing statement or statement of assignment for a uniform fee of one dollar per page.

    (e)(f) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under § 57A-9-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.

    Section 13. There is hereby appropriated from the general fund the sum of seven hundred sixteen thousand dollars ($716,000), or so much thereof as may be necessary, to the secretary of state for the purpose of purchasing and developing software for an online business registration and filing system.

    Section 14. The secretary of state shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by section 13 of this Act.

    Section 15. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 16. Whereas, sections 13 to 15, inclusive, of this Act are necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and sections 13 to 15, inclusive, of this Act shall be in full force and effect from and after its passage and approval.

     Signed March 15, 2016
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CHAPTER 3

(HB 1187)

The Secretary of State may refuse to file certain documents.


        ENTITLED, An Act to allow the Office of the Secretary of State to refuse to file certain documents.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The Office of the Secretary of State may refuse to file any document for any business entity whether domestic or foreign, for profit or nonprofit, as provided in title 47, title 48, chapter 37-6, or chapter 37-11 if the document contains any letter combination that carries connotations offensive to good taste and decency, or consists of immoral, deceptive, or scandalous material.

     Signed March 10, 2016
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CHAPTER 4

(SB 45)

Building South Dakota programs revised.


        ENTITLED, An Act to revise certain provisions of the building South Dakota fund programs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-16G-48 be amended to read:

    1-16G-48. The commissioner of the Bureau of Finance and Management shall authorize and disburse money from the building South Dakota fund for the following purposes:

            (1)    Twenty-five percent of the fund shall be transferred to the local infrastructure improvement grant fund created in § 1-16G-50;

            (2)    Fifteen percent of the fund shall be transferred to the economic development partnership fund created in § 1-16G-51;

            (3)    Thirty percent of the fund shall be transferred to the workforce education fund created in § 13-13-88;

            (4)    Twenty-five percent of the fund shall be transferred to the South Dakota housing opportunity fund created in § 11-13-2. Disbursement of funds to the South Dakota Housing Development Authority shall be made after South Dakota housing opportunity funds have been obligated by the oversight commission created pursuant to § 11-13-8;

            (5)    Five percent of the fund shall be transferred to the revolving economic development and initiative fund created in § 1-16G-3 for the purpose of making grants to projects that have a total project cost of less than twenty million dollars.

    The commissioner of the Bureau of Finance and Management, at the request of the commissioner of the Governor's Office of Economic Development and the approval of the special committee created in § 4-8A-2 or the Senate and House standing committees on appropriations meeting in joint session, shall transfer building South Dakota fund money among the local infrastructure improvement grant fund, the economic development partnership fund, and the revolving economic development and initiative fund, provided the money is unobligated at the time of the request and subsequent transfer.

    Section 2. That § 11-13-5 be amended to read:

    11-13-5. The South Dakota housing opportunity fund may be used to provide a grant, loan, loan guarantee, loan subsidy and other financial assistance to an eligible applicant. Money from the fund may be used to build, buy, and or rehabilitate affordable housing for rent or home ownership, including single family and multifamily housing. The eligible fund activities include affordable housing projects that consist of new construction or the purchase of rental or home ownership housing, substantial or moderate rehabilitation of rental or home ownership housing, housing preservation, including home repair grants and grants to make homes more accessible to individuals with disabilities, homelessness prevention activities, as well as a community land trust. No more than ten percent of the funds awarded may be used for the administrative costs of the South Dakota Housing Development Authority or any entity that has received receives funding from the fund.


    Section 3. That § 11-13-8 be amended to read:

    11-13-8. Awards from the fund shall be made through a competitive process during the initial an application cycle each year. Each application shall be evaluated and scored based on criteria created by the administering agency and the oversight commission. Each applicant that is awarded money from the fund shall be is encouraged to leverage the money for any project or program with other public and private dollars. If there are funds available after the initial application cycle, additional application rounds may be established. Any program income or loan payments received shall be deposited into the fund account held by the South Dakota Housing Authority.

    Section 4. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Before the transfer of money to any fund under § 1-16G-48, the commissioner of the Bureau of Finance and Management shall authorize and disburse money from the building South Dakota fund for the following purposes:

            (1)    An amount to pay for any contracts entered into by the Governor's Office of Economic Development with an implementing partner to provide technical assistance to an applicant or monitoring service for any building South Dakota fund program; and

            (2)    An amount to pay the administrative expenses incurred by the Governor's Office of Economic Development for any building South Dakota fund program. The administrative expenses are limited to the salary and benefits of any personnel directly responsible for the administration of the programs.

    Section 5. That § 1-16G-52 be amended to read:

    1-16G-52. The Board of Economic Development may award funds from the economic development partnership fund for the following purposes:

            (1)    To support new staff, or elevate existing part-time staff and equipment and training needs for the purpose of developing or expanding local, community, and economic development programs. The board may also;

            (2)    To support any recipient's plans to work with other entities for the purpose of developing or expanding local, community, and economic development programs; or

            (3)    To award funds from the economic development partnership fund to commence or replenish a local revolving loan fund for the purpose of developing or expanding housing, community, and economic development programs. Areas of emphasis for funding include creating high quality employment opportunities, repopulation, stronger economies, housing development, business growth, support of entrepreneurship, and job creation, expansion, and retention. When awarding funds for a revolving loan fund, the board may give priority to an application that serves multiple communities. The board may give additional priority to an application that leverages state funds at greater than a one-to-one matching basis.

     Signed March 15, 2016
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CHAPTER 5

(HB 1213)

State support for innovative research by South Dakota companies.


        ENTITLED, An Act to create the new frontiers program to support innovative research by South Dakota companies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Terms used in this Act, mean:

            (1)    "Board," the Board of Economic Development;

            (2)    "Commissioner," the commissioner of the Governor's Office of Economic Development;

            (3)    "Completed the program" or "completion of the program," the first date when the program's schedule of work as outlined in the application required under section 3 of this Act is finished. In the specific case of a clinical trial for a new pharmaceutical product or medical device, this term means the end date of the clinical trial phase undertaken pursuant to approval by a federal authority;

            (4)    "Commencement date," the first date preclinical research or clinical trial activities begin pursuant to a program's schedule of work or the terms of an approval by a federal authority. For a person already engaged in a program and relocating to South Dakota from a foreign jurisdiction, commencement date means the date of first full-time occupancy of an office or other facility located in this state;

            (5)    "Department," the Department of Revenue;

            (6)    "Federal authority," an agency or instrumentality of the United States government authorized under law to regulate the activities of the program, including the U.S. Food and Drug Administration and the National Institutes of Health;

            (7)    "GOED," the Governor's Office of Economic Development;

            (8)    "Person," any individual, firm, copartnership, joint venture, association, cooperative, nonprofit development corporation, limited liability company, limited liability partnership, corporation, estate, trust, business trust, receiver, or any group or combination acting as a unit. The term also includes any heirs, assigns, or successors in interest thereto;

            (9)    "Program," a planned, sustained original research engagement into a new or adapted method, process, product, or technology, or the testing of a new method, process, product, or technology under approval by a federal authority, including a clinical trial for a new pharmaceutical product or medical device;

            (10)    "Program cost," the amount paid by the program owner in money, credits, property, or other consideration associated with a program including contract labor, materials, equipment, supplies, or fees.

    Section 2. That chapter 1-16G be amended by adding a NEW SECTION to read:

    A person may apply for a new frontiers payment pursuant to this Act. The person shall:

            (1)    Timely file an application as required by section 3 of this Act;

            (2)    Receive a permit from GOED pursuant to section 5 of this Act;

            (3)    Timely file an affidavit for new frontiers payment as required by section 6 of this Act; and

            (4)    Comply with the provisions of this Act to qualify for the new frontiers payment.

    A program with a commencement date after March 31, 2016, may receive a new frontiers payment as provided by this Act.

    Section 3. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Before any person receives any new frontiers payment as provided in this Act, the person shall file an application with GOED. The application may be filed no later than thirty days after the commencement date. No person may receive a new frontiers payment if the application is not timely filed with GOED.

    The application shall include the following information:

            (1)    The program owner's name and contact information;

            (2)    The general description of the program;

            (3)    The commencement date of the program;

            (4)    The projected date for completion of the program;

            (5)    A schedule of work for the program;

            (6)    The estimated program costs;

            (7)    The location of the program;

            (8)    A list of the anticipated contractors and subcontractors who will perform work on the program;

            (9)    A copy of any approval notification by a federal authority;

            (10)    A commitment from the program owner to manufacture or process the product resulting from the program in South Dakota; and

            (11)    Any other information that GOED may require.

    The application shall be on a form prescribed by the commissioner. The application shall be signed by the program owner under penalty of perjury. No application may include more than one program.

    Section 4. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The board shall review the application and make a determination of whether the program shall be approved or disapproved. The board may approve a new frontiers payment that is equal to or less than South Dakota sales and use tax paid on the program costs.

    The board shall consider the following factors when making that determination:

            (1)    Is the program in an industry or sector identified by GOED as a priority for economic development;

            (2)    Is the program likely to lead to future economic development or commercialization opportunities located in South Dakota;

            (3)    Impact of the program on current economic activity in the community, area, and state;

            (4)    Extent to which program costs are subject to similar taxes in other states; and

            (5)    Criteria pertaining to eligible activities and economic impact established by rules promulgated pursuant to section 12 of this Act.

    Section 5. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Upon approval of the application by the board, GOED shall issue a permit entitling the person to submit an affidavit for new frontiers payment as provided by section 8 of this Act. The permit and new frontiers payment is assignable and transferable and may be used as collateral or security pursuant to chapter 57A-9. If the initial permit holder entity reorganizes into a new entity, the new entity shall file with GOED an amended application within sixty days of the reorganization. If either the permit or new frontiers payment, or both, is assigned or transferred to another entity, the entity shall file with GOED an amended application within sixty days.

    Section 6. That chapter 1-16G be amended by adding a NEW SECTION to read:

    Any person holding a new frontiers permit issued by GOED and completing its program shall file an affidavit for new frontiers payment with GOED.

    The affidavit for new frontiers payment shall contain the following information:

            (1)    The program owners' name and contact information;

            (2)    The general description of the program;

            (3)    The date of completion of the program;

            (4)    The final program costs;

            (5)    The amount of South Dakota sales tax and use tax paid for the completion of the program;

            (6)    The location of the program;

            (7)    A list of the contractors and subcontractors who performed work on the program;

            (8)    A copy of any approval notification by a federal authority;

            (9)    A commitment from the program owner to manufacture or process the product resulting from the program in South Dakota;

            (10)    If the new frontiers payment was assigned or transferred, the name and address of the person to whom the new frontiers payment has been assigned or transferred; and

            (11)    Any other information that GOED may require.

    The affidavit for new frontiers payment shall be on a form prescribed by the commissioner. The affidavit for new frontiers payment shall be signed by the program owner. No affidavit for new frontiers payment may include more than one program.

    Section 7. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The affidavit for new frontiers payment as required by section 6 of this Act shall be filed no later than six months after the completion of the program. If the affidavit for new frontiers payment is not timely filed, the person is ineligible for a new frontiers payment. If the person filing the affidavit for new frontiers payment knowingly makes any material false statement or report in the affidavit for new frontiers payment, the person is ineligible for a new frontiers payment.

    No program costs that occur after eight years from the commencement date are eligible to be included in the final program cost determination for a new frontiers payment, unless an extension is granted at the sole discretion of the board. Any extension granted may not extend beyond twelve years from the commencement date.

    Section 8. That chapter 1-16G be amended by adding a NEW SECTION to read:

    After the timely receipt of a completed affidavit for new frontiers payment, within ninety days GOED shall make payment from the reinvestment fund established in § 1-16G-64 to the program owner based upon the amount and terms approved by the board. If GOED requests additional documents or information from the program owner, the ninety-day period begins to run from the date of receipt of the additional documents or information. GOED shall tender the new frontiers payment by electronic funds transfer.

    Section 9. That chapter 1-16G be amended by adding a NEW SECTION to read:

    If a person receives a new frontiers payment under section 8 of this Act for a program, but subsequently locates the manufacture or processing of the product resulting from the program outside of South Dakota, the person shall repay all new frontiers payments to the State of South Dakota. Upon application by the person, the board may in its discretion waive all or part of the repayment obligation.

    The application for repayment waiver shall be on a form prescribed by the commissioner and shall be signed by the person requesting the waiver.

    Section 10. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The limitations on reinvestment payments imposed by § 1-16G-65 also apply to any new frontiers payment approved by the board.

    Section 11. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The name of any person that receives a new frontiers payment or waiver as provided by this Act, and the amount of the new frontiers payment or waiver, is public information and shall be available and open to public inspection as provided in § 1-27-1.

    Section 12. That chapter 1-16G be amended by adding a NEW SECTION to read:

    The board may promulgate rules, pursuant to chapter 1-26, concerning the procedures and forms for applying for and receiving the new frontiers payment, the requirements necessary to qualify for the new frontiers payment, and the criteria to evaluate programs submitting applications.

    Section 13. That § 1-16G-64 be amended to read:


    1-16G-64. There is hereby created the reinvestment payment fund for the sole purpose of making reinvestment payments pursuant to the provisions of §§ 1-16G-56 to 1-16G-68, inclusive, and new frontiers payments pursuant to the provisions of this Act.

    If the Board of Economic Development board approves a reinvestment payment pursuant to the provisions of §§ 1-16G-56 to 1-16G-68, inclusive, the Department of Revenue shall deposit into the fund a portion or all of the sales and use taxes paid by the project owner up to a maximum amount of the reinvestment payment approved by the board.

    If the board approves a new frontiers payment pursuant to the provisions of this Act, the Department of Revenue shall deposit into the fund a portion or all of the sales and use taxes paid by the program owner up to a maximum amount of the new frontiers payment approved by the board.

    The funds in the reinvestment project fund are continuously appropriated to GOED to make reinvestment payments pursuant to §§ 1-16G-56 to 1-16G-68, inclusive, and new frontiers payments pursuant to this Act. If any money deposited in the fund and set aside for a specific reinvestment payment or new frontiers payment is in excess of the final reinvestment or new frontiers payment, as applicable, or the specific project or program becomes ineligible for the reinvestment or new frontiers payment, as applicable, such money shall be deposited into the general fund. Interest earned on money in the fund shall be deposited into the general fund.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\006.wpd
CHAPTER 6

(HB 1060)

South Dakota Board on Geographic Names revised.


        ENTITLED, An Act to revise certain provisions regarding the South Dakota Board on Geographic Names.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-19C be amended by adding a NEW SECTION to read:

    The South Dakota Board on Geographic Names may only act on a name change for a geographic place name that has been identified by state law as being offensive or insulting, except that the board may hold hearings to consider recommending names to the Legislature as offensive or insulting. The board may not act on any other proposed name change. If state law identifies such a name, the board shall follow the procedures under § 1-19C-2.1 to recommend a new or replacement name.

     Signed March 25, 2016
_______________
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CHAPTER 7

(HB 1090)

Audits of insurance pooling arrangements
to be filed with the Department of Legislative Audit.


        ENTITLED, An Act to require certain statements and audits concerning insurance pooling arrangements to be filed with the Department of Legislative Audit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-24 be amended by adding a NEW SECTION to read:

    Each pool arrangement, as defined in § 1-24-11, shall have an annual audit of its financial statements conducted in accordance with generally accepted government auditing standards. A copy of the audited financial statements shall be filed with the Department of Legislative Audit within twelve months of the close of the previous fiscal year for the pool arrangement. The department shall make audited financial statements filed pursuant to this section available to the public on the department's website. The auditor-general may examine all financial records, related to funds provided by the state or its political subdivisions, of any pool arrangement if deemed necessary and in the public interest by the auditor-general.

     Signed February 29, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\008.wpd
CHAPTER 8

(HB 1146)

Agreements with tribes regarding high school equivalency tests
administered on Indian reservations.


        ENTITLED, An Act to authorize the Governor to enter agreements with Indian tribes regarding the high school equivalency tests administered on Indian reservations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    The Governor of the State of South Dakota is hereby authorized to enter into an agreement under the provisions of this Act and chapter 1-24 with any federally recognized Indian tribe. The purpose of any agreement entered into pursuant to this Act is to allow the Indian tribes to select the high school equivalency test that is administered at testing sites located within the exterior boundaries of Indian reservations within the state.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    Any agreement reached pursuant to section 1 of this Act shall be for a term not to exceed five years. An agreement, however, is renewable upon expiration by the mutual consent of the parties.

     Signed March 16, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\009.wpd
CHAPTER 9

(SB 73)

Open meeting requirements expanded.


        ENTITLED, An Act to clarify certain provisions regarding open meetings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-25-1 be amended to read:

    1-25-1. The official meetings of the state, its political subdivisions, and any public body of the state or its political subdivisions are open to the public unless a specific law is cited by the state, the political subdivision, or the public body to close the official meeting to the public. For the purposes of this section, a political subdivision or a public body of a political subdivision means any association, authority, board, commission, committee, council, task force, school district, county, city, town, township, or other agency of the state, which is created or appointed by statute, ordinance, or resolution and is vested with the authority to exercise any sovereign power derived from state law. For the purposes of this section, an official meeting is any meeting of a quorum of a public body at which official business of that public body is discussed or decided, or public policy is formulated, whether in person or by means of teleconference.

    It is not an official meeting of one political subdivision or public body if its members provide information or attend the official meeting of another political subdivision or public body for which the notice requirements of § 1-25-1.1 have been met.

    Any official meeting may be conducted by teleconference as defined in § 1-25-1.2. A teleconference may be used to conduct a hearing or take final disposition regarding an administrative rule pursuant to § 1-26-4. A member is deemed present if the member answers present to the roll call conducted by teleconference for the purpose of determining a quorum. Each vote at an official meeting held by teleconference shall be taken by roll call.

    If the state, a political subdivision, or a public body conducts an official meeting by teleconference, the state, the political subdivision, or public body shall provide one or more places at which the public may listen to and participate in the teleconference meeting. For any official meeting held by teleconference, which has less than a quorum of the members of the public body participating in the meeting who are present at the location open to the public, arrangements shall be provided for the public to listen to the meeting via telephone or internet. The requirement to provide one or more places for the public to listen to the teleconference does not apply to an executive or closed meeting.

    If a quorum of township supervisors, road district trustees, or trustees for a municipality of the third class meet solely for purposes of implementing previously publicly-adopted policy, carrying out ministerial functions of that township, district, or municipality, or undertaking a factual investigation of conditions related to public safety, the meeting is not subject to the provisions of this chapter.

    A violation of this section is a Class 2 misdemeanor.

    Section 2. That § 1-25-1.2 be amended to read:

    1-25-1.2. For the purposes of this chapter, a teleconference is information exchanged by any

audio or, video, or electronic medium, including the internet.

     Signed March 9, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\010.wpd
CHAPTER 10

(HB 1066)

Public notice for a meeting of a public body.


        ENTITLED, An Act to revise certain provisions regarding the public notice for a meeting of a public body.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-25-1.1 be amended to read:

    1-25-1.1. All public bodies, except the state and each state board, commission, or department as provided in section 2 of this Act, shall provide public notice, with proposed agenda, that is visible, readable, and accessible for at least an entire, continuous twenty-four hours immediately preceding any meeting, by posting a copy of the notice, visible to the public, at the principal office of the public body holding the meeting. The proposed agenda shall include the date, time, and location of the meeting. The notice shall also be posted on the public body's website upon dissemination of the notice, if such a website exists. For any special or rescheduled meetings meeting, the information in the notice shall be delivered in person, by mail, by email, or by telephone, to members of the local news media who have requested notice. For any special or rescheduled meetings, all public bodies meeting, each public body shall also comply with the public notice provisions of this section for a regular meetings meeting to the extent that circumstances permit. A violation of this section is a Class 2 misdemeanor.

    Section 2. That chapter 1-25 be amended by adding a NEW SECTION to read:

    The state and each state board, commission, or department shall provide public notice, with proposed agenda, that is visible, readable, and accessible to the public for at least two continuous days, as that time period is computed pursuant to § 15-6-6(a), immediately preceding any meeting, by posting a copy of the notice at the principal office of the public body holding the meeting. The proposed agenda shall include the date, time, and location of the meeting. The notice shall also be posted on the public body's website upon dissemination of the notice, if such a website exists. For any special or rescheduled meeting, the information in the notice shall be delivered in person, by mail, by email, or by telephone, to members of the local news media who have requested notice. For any special or rescheduled meeting, each public body shall also comply with the public notice provisions of this section for a regular meeting to the extent that circumstances permit. A violation of this section is a Class 2 misdemeanor.

     Signed February 18, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\011.wpd
CHAPTER 11

(SB 90)

The public may record public meetings.


        ENTITLED, An Act to ensure that members of the public are able to access and record public meetings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 1-25 be amended by adding a NEW SECTION to read:

    No state, political subdivision, or public body may prevent a person from recording, through audio or video technology, a public meeting that is open to the public as long as the recording is reasonable, obvious, and not disruptive.

     Signed March 15, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\012.wpd
CHAPTER 12

(SB 104)

Rules to be reviewed before filing with the Secretary of State.


        ENTITLED, An Act to set the time period for when an agency may promulgate rules.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1.  That § 1-26-4.3 be amended to read:

    1-26-4.3. No permanent rule may be adopted if more than seventy-five days have passed from the date the public hearing on the rule commenced. The agency shall appear before filed with the secretary of state without the review of the rule by the Interim Rules Review Committee and present the proposed permanent rule to the committee within the seventy-five-day period before the rule is filed with the secretary of state. If the Interim Rules Review Committee fails to meet on the proposed permanent rule during the seventy-five-day period, and if the agency has complied with subdivisions 1-26-6(1) to 1-26-6(4), inclusive, the agency may complete the rules adoption process by complying with subdivision 1-26-6(5) notwithstanding subdivision 1-26-6(6). No permanent rule may be filed with the secretary of state if more than sixty days have passed from the date the Interim Rules Review Committee adopts a motion that the rule-making process is complete. No emergency rule may be adopted if more than thirty days have passed from the date the notice of intent to adopt an emergency rule was published in the manner prescribed in § 1-26-4.1.

     Signed March 16, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\013.wpd
CHAPTER 13

(HB 1117)

Languages used at public meeting regulated.


        ENTITLED, An Act to repeal certain provisions concerning the authorization for the use of other languages in public records or public meetings.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-27-22 be amended to read:

    1-27-22. The provisions of §§ 1-27-20 to 1-27-26, inclusive, do not apply:

            (1)    To instruction in foreign language courses;

            (2)    To instruction designed to aid students with limited English proficiency in a timely transition and integration into the general education system;

            (3)    To the conduct of international commerce, tourism, and sporting events;

            (4)    When deemed to interfere with needs of the justice system;

            (5)    When the public safety, health, or emergency services require the use of other languages. However, any such authorization for the use of a language other than the common language in printing informational materials or publications for general distribution must be approved in an open public meeting pursuant to chapter 1-25 by the governing board or authority of the relevant state or municipal entity and the decision shall be recorded in publicly available minutes; and

            (6)    When expert testimony, witnesses, or speakers require a language other than the common language. However, for purposes of deliberation, decision making, or record keeping, the official version of such testimony or commentary shall be the officially translated English language version.

    Section 2. That § 1-27-23 be repealed.

    Section 3. That § 1-27-26 be repealed.

     Signed February 29, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\014.wpd
CHAPTER 14

(HB 1032)

Guaranteed energy savings contracts revised.


        ENTITLED, An Act to revise certain provisions regarding guaranteed energy savings contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-33B-1 be amended to read:

    1-33B-1. Terms used in this chapter mean:

            (1)    "Governmental unit," state government or any political subdivision of the state "Cost-effective" or "cost-effectiveness," that the sum of guaranteed cost savings are equal to or exceed any financing repayment obligation each year of a finance term;

            (2)    "Guaranteed energy savings contract," a contract for measures which provides that either energy or operational cost savings, or both, are guaranteed to the extent necessary to make payments for the measures recommended in the contract "Cost-saving measure," a cost-effective improvement, repair, or alteration of equipment fixtures, or furnishings added to or used in a facility that is designed to reduce energy consumption, water consumption, or operation and maintenance costs. The term also includes vehicle acquisitions, changes to utility rate or tariff schedules, or fuel source changes that result in costs savings;

            (3)    "Qualified provider," a person, business, or state agency experienced in the design, implementation, or installation of energy conservation measures who can demonstrate the financial capabilities of completing the obligations stipulated in a guaranteed energy savings contract "Energy performance contract," a contract between a governmental unit and a qualified energy service provider for evaluation, recommendation, and implementation of one or more cost-saving measures, evaluation of cost-effectiveness, and guaranteed cost savings;

            (4)    "Finance term," the length of time for repayment of funds borrowed for an energy performance contract;

            (5)    "Governmental unit," state government or any political subdivision of the state;

            (6)    "Guarantee period," the period of time from the effective date of a contract until guaranteed cost savings are achieved;

            (7)    "Operation and maintenance cost savings," a measurable decrease in operation and maintenance costs as a direct result of cost-saving measures, calculated using baseline operation and maintenance costs. The term does not include the shifting of personnel costs or similar short-term cost savings that cannot be definitively measured;

            (8)    "Qualified energy service provider" or "provider," a person, business, or state agency with experience in the design, implementation, or installation of cost saving measures, who can demonstrate the financial capabilities of completing the obligations stipulated to in an energy performance contract;

            (9)    "Utility cost savings," expenses for utilities that are eliminated or avoided on a long-term basis as a result of equipment installed or modified, or services performed by a qualified energy service provider. The term includes expenses for natural gas, propane or similar fuels, electricity, water, waste water, and waste disposal.

    Section 2. That chapter 1-33B be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, guaranteed cost savings, means a guaranteed annual measurable monetary reduction in utility, operating, and maintenance costs for each year of a guarantee period as a result of cost-saving measures. Guaranteed cost savings for utility savings shall be calculated using the mutually agreed upon baseline utility rates in use at the time of an investment-grade energy audit. Guaranteed cost savings for operation and maintenance cost savings shall be calculated using mutually agreed upon baseline operation and maintenance costs at the time

of an investment-grade energy audit.

    Section 3. That chapter 1-33B be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, investment-grade energy audit, means a study of energy or water usage of a public building, including a detailed description of the improvements recommended for the project, the estimated cost of the improvements, and the utility, operation, and maintenance cost savings projected to result from the recommended improvements. The study shall contain all of the information required pursuant to § 1-33B-3.

    Section 4. That chapter 1-33B be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, measurement and verification, means the methodology, measurements, inspections, and mathematical calculations to determine utility consumption before and after an energy performance contract is implemented. The measurement and verification report may be for an individual cost-saving measure or an entire project. The governmental unit shall determine which measurement and verification method to utilize.

    Section 5. That § 1-33B-3 be amended to read:

    1-33B-3. For the purposes of this chapter, the term, request for proposals proposal, means a procurement announcement through a public notice, from a governmental unit which will administer administers the program, detailing the work, service, or supplies needed for an energy conservation measure. The request for proposal shall include the following:

            (1)    The name and address of the governmental unit;

            (2)    The name, address, title, and phone number of contact person;

            (3)    The response due date and time deadline;

            (4)    The location and scope of the project;

            (5)    The project completion deadline;

            (6)    The evaluation criteria for awarding a contract; and

            (7)    Any other stipulations and clarifications the governmental unit may require.

    Section 6. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A governmental unit may solicit submissions of qualifications to enter into an energy performance contract by providing public notice to qualified energy service providers. The notice shall invite qualified energy service providers to submit qualifications and proposals for investment grade energy audits. Governmental units shall utilize chapter 36-18A to determine the minimum educational qualifications of a qualified energy service provider. The governmental unit shall comply with procurement procedures for professional services provided under §§ 5-18D-17 to 5-18D-22, inclusive.

    Section 7. That chapter 1-33B be amended by adding a NEW SECTION to read:

    The governmental unit shall evaluate the qualifications and proposals of qualified energy service providers according to the quality of the provider's technical approach and the provider's experience with:

            (1)    Design, engineering, and installation of cost-saving measures;

            (2)    Overall project management;

            (3)    Projects of similar size and scope;

            (4)    Post installation measurement and verification of guaranteed cost savings;

            (5)    Project commissioning;

            (6)    Training of building operators; and

            (7)    Conversions to a different fuel source.

    Section 8. That chapter 1-33B be amended by adding a NEW SECTION to read:

    The governmental unit may negotiate a contract with the most qualified energy service provider at a price that the governmental unit determines fair and reasonable, taking into account the scope of the services rendered. The provider selected is not required to have submitted the proposal with the lowest cost. If the governmental unit is unable to negotiate a satisfactory contract with the provider, negotiations with that provider shall be formally terminated, and the governmental unit may select the next provider until an agreement is reached or the process is terminated. The governmental unit may choose to reject all proposals.

    Section 9. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A qualified energy service provider, selected by a governmental unit pursuant to § 1-33B-3 and sections 6 to 8, inclusive, of this Act, shall prepare an investment-grade energy audit. The audit shall be incorporated into the energy performance contract.

    Section 10. That chapter 1-33B be amended by adding a NEW SECTION to read:

    An investment-grade energy audit shall include estimates of all costs and guaranteed cost savings for the proposed energy performance contract, including cost of design, engineering, equipment, materials, installation, maintenance, repairs, monitoring and verification, commissioning, training, and debt service.

    Section 11. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A qualified energy service provider and the governmental unit shall agree on the cost of an investment-grade energy audit before it is conducted. If an investment-grade energy audit is completed, and the governmental unit does not execute an energy performance contract, the governmental unit shall pay the full costs of the investment-grade energy audit. If the governmental unit executes the energy performance contract, the cost of the investment-grade energy audit may be included in the costs of an energy performance contract or, at the discretion of the governmental unit, paid for by the governmental unit.

    Section 12. That chapter 1-33B be amended by adding a NEW SECTION to read:

    A governmental unit may pay for an energy performance contract with funds designated for operating costs, capital expenditures, utility costs, lease payments, installment payment contracts, lease purchase agreements, or bonds issued pursuant to law.

    Section 13. That chapter 1-33B be amended by adding a NEW SECTION to read:

    All permissible sources, including utility incentives, grants, operating costs, or capital budgets, may be used to reduce the amount of financing.

    An energy performance contract may extend beyond the current fiscal year, but may not exceed fifteen years, the cost-weighted average useful life of the cost-saving measure, or the term of financing, whichever is shortest.

    During the guarantee period, a qualified energy service provider shall measure and verify reductions in energy consumption and costs attributable to cost-saving measures implemented pursuant to an energy performance contract and prepare and provide a measurement and verification report to the governmental unit at least once a year.

    Section 14. That chapter 1-33B be amended by adding a NEW SECTION to read:

    Costs for measurement and verification shall be included in an energy performance contract and paid by the governmental unit during an initial monitoring period of no less than three years.

    The energy performance contract shall provide that, if guaranteed cost savings are not achieved during any year in the initial monitoring period, the qualified energy service provider shall pay the costs for measurement and verification reports until guaranteed cost savings are achieved for all consecutive years equal to the initial monitoring period.

    Section 15. That chapter 1-33B be amended by adding a NEW SECTION to read:

    Except as provided in this section, the qualified energy service provider shall pay the governmental unit the amount of any verified annual guaranteed cost savings shortfall each year until guaranteed cost savings are achieved for each year in an initial monitoring period as established in section 14 of this Act. The amount of cost savings achieved during a year shall be determined using the baseline rates used in guaranteed cost savings.

    In the case of a shortfall, the governmental unit and qualified energy service provider may negotiate the terms of measurement and verification reports and the shortfall payment for the remainder of the energy performance contract finance term.

    If there is an excess in cost savings in any year of the guarantee period, the guaranteed cost savings remain with the governmental unit. Guaranteed cost savings may not be used to cover potential shortfalls in subsequent years or actual guaranteed cost savings shortages in previous years of a guarantee period.

    Section 16. That § 1-33B-4 be repealed.

    Section 17. That § 1-33B-6 be amended to read:

    1-33B-6. For state owned buildings, all improvements proposed under an energy efficiency performance contract shall, prior to submitting a request for proposals, the governmental unit shall receive prior permission from the Bureau of Administration and conform to all state statutes laws and rules as they apply to renovating or retrofitting state-owned buildings before submitting a request for proposals under § 1-33B-3 and sections 6 to 8, inclusive, of this Act. The Bureau of Administration shall review the proposal and notify the qualified provider governmental unit of its findings within thirty days.

    Section 18. That § 1-33B-7 be repealed.

     Signed February 8, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\015.wpd
CHAPTER 15

(SB 20)

Behavioral Health Division created.


        ENTITLED, An Act to revise certain provisions related to behavioral health.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-36-25 be amended to read:

    1-36-25. The secretary of the Department of Social Services may promulgate rules, pursuant to chapter 1-26, for the Mental Health Division of Behavioral Health pertaining to any individual, organization, or corporation which receives directly or indirectly financial assistance from the state if such assistance is under the department's supervision. The secretary's promulgation of rules shall be in accordance with chapter 1-26 governing may govern:

            (1)    Management and administration, including fiscal control, program planning, implementation, and evaluation;

            (2)    Physical facilities, except matters covered by local fire and building codes or regulations;

            (3)    Service administration, including client rights, confidentiality, treatment planning, and statistical reporting;

            (4)    Service components, including outpatient, emergency, liaison, psychiatric rehabilitation, residential, consultation and education, and case management; and

            (5)    Staff qualifications.

    Section 2. That § 1-36-26 be repealed.

    Section 3. That § 1-36-31 be repealed.

    Section 4. That § 1-36-32 be repealed.

    Section 5. That § 1-36-33 be repealed.

    Section 6. That § 1-36-34 be repealed.

    Section 7. That § 27A-1-13 be amended to read:

    27A-1-13. A bordering state or governmental entity of a bordering state may contract with any appropriate treatment facility in South Dakota for the treatment of mental illness or chemical dependency substance use disorder for residents of the bordering state. However, any such the contract shall conform to the requirements of §§ 27A-1-12 to 27A-1-17, inclusive.

    Section 8. That § 27A-1-16 be amended to read:

    27A-1-16. Any treatment facility in South Dakota may enter negotiations with appropriate personnel of a bordering state to develop a contract that conforms to the requirements of §§ 27A-1-12 to 27A-1-17, inclusive. A contract with a bordering state shall enable the temporary placement in South Dakota by a bordering state of a person who is on an emergency hold or who has been

involuntarily committed as mentally ill or chemically dependent due to mental illness or a substance use disorder as determined by the bordering state. Any person committed by a bordering state or on emergency hold from a bordering state and who is placed in a South Dakota facility continues to be in the legal custody of the bordering state and shall be returned to the bordering state prior to before release from emergency hold or involuntary commitment. The bordering state's laws governing commitment criteria, length of commitment, hearings, reexaminations, and extension of commitment continue to apply to these bordering state residents. The State of South Dakota is not responsible for treatment costs, legal proceeding costs, or transportation costs. In all other aspects, a resident of a bordering state placed in a South Dakota facility is subject to the laws of South Dakota. A contract under §§ 27A-1-12 to 27A-1-17, inclusive, with a bordering state or bordering state governmental entity shall specify that responsibility for payment for the cost of care and transportation for persons under §§ 27A-1-12 to 27A-1-17, inclusive, remains with the contracting entity of the bordering state of which that person is a resident.

    Section 9. That § 27A-15-1.1 be amended to read:

    27A-15-1.1. For the purposes of this chapter, an individual with a serious emotional disturbance is an individual who:

            (1)    Is under eighteen years of age;

            (2)    Exhibits behavior resulting in functional impairment which substantially interferes with, or limits the individual's role or functioning in the community, school, family, or peer group;

            (3)    Has a mental disorder diagnosed under the Diagnostic and Statistical Manual of Mental Disorders, fourth fifth edition revised, 1994, 2013;

            (4)    Has demonstrated a need for one or more special care services, in addition to mental health services; and

            (5)    Has problems with a demonstrated or expected longevity of at least one year or has an impairment of short duration and high severity.

    For purposes of this section, intellectual disability, epilepsy, other developmental disability, alcohol or substance abuse, brief period of intoxication, or criminal or delinquent behavior do not, alone, constitute a serious emotional disturbance.

    Section 10. That § 34-20A-2 be amended to read:

    34-20A-2. Terms as used in this chapter mean:

            (1)    "Accredited prevention or treatment facility," a private or public agency meeting the standards prescribed in § 34-20A-27 and listed under § 34-20A-47, or a private or public agency or facility surveyed and accredited by the Joint Commission; an Indian Health Service's quality assurance review under the Indian Health Service Manual, Professional Standards-Alcohol/Substance Abuse; or the Commission on Accreditation of Rehabilitation Facilities; or the Council on Accreditation; under the drug and alcohol treatment standards incorporated and adopted by the division in rules promulgated pursuant to chapter 1-26, if proof of such the accreditation, with accompanying recommendations, progress reports and related correspondence are submitted to the Division of Alcohol and Drug Abuse Behavioral Health in a timely manner;

            (2)    "Advisory council" and "council," the Drug and Alcohol Abuse Advisory Council created by § 34-20A-3.2 "Addiction counselor," a person licensed or certified as an addiction counselor by the South Dakota Board of Addiction and Prevention Professionals;

            (3)    "Alcoholic," a person who habitually lacks self-control as to the use of alcoholic beverages, or uses alcoholic beverages to the extent that his the person's health is substantially impaired or endangered or his the person's social or economic function is substantially disrupted;

            (4)    "Chemical dependency counselor," a level II or III counselor certified by the South Dakota Certification Board for Alcohol and Drug Professionals;

            (5)    "Department," the State Department of Social Services;

            (6)(5)    "Designated prevention or treatment facility," an accredited agency operating under the direction and control of the state or providing services under this chapter through a contract with the division or treatment facilities operated by the federal government which may be designated by the division without accreditation by the state;

            (7)(6)    "Division," the Division of Alcohol and Drug Abuse Behavioral Health within the department;

            (8)(7)    "Drug abuser," a person who habitually lacks self-control as to the use of controlled drugs or substances as defined in § 34-20B-3 to the extent that the person's health is substantially impaired or endangered or that the person's social or economic function is substantially disrupted;

            (9)(8)    "Incapacitated by alcohol or other drugs," that a person, as a result of the use of alcohol or other drugs, is unconscious or his the person's judgment is otherwise so impaired that he the person is incapable of realizing and making a rational decision with respect to his the person's need for treatment;

            (10)(9)    "Incompetent person," a person who has been adjudged incompetent by the circuit court;

            (11)(10)    "Intoxicated person," a person who demonstrates diminished mental or physical capacity as a result of the use of alcohol or other drugs;

            (12)(11)    "Prevention," purposeful activities designed to promote personal growth of an individual a person and strengthen the aspects of the community environment which are supportive to him the person in order to preclude, forestall prevent, or impede the development of alcohol or other drug misuse and abuse;

            (13)(12)    "Secretary," the secretary of the Department of Social Services;

            (14)(13)    "Treatment," the broad range of emergency, outpatient, intermediate, and inpatient services and care, including diagnostic evaluation, which may be extended to those persons a person experiencing problems as a result of the use of alcohol or other drugs.

    Section 11. That § 34-20A-3.1 be repealed.

    Section 12. That § 34-20A-27 be amended to read:

    34-20A-27. The Division of Alcohol and Drug Abuse division shall establish reasonable standards and requirements for accredited prevention or treatment facilities. The division may fix the fees to be charged by the division for the required inspections. The division may adopt rules, pursuant to chapter 1-26, in regard to the following standards and requirements:

            (1)    Management and administration, including fiscal control, program planning, and

evaluation;

            (2)    Physical facilities and quality control;

            (3)    Services administration, including client rights, confidentiality, treatment planning, and statistical reporting;

            (4)    Service components including: inpatient/residential, outpatient treatment, social detoxification, transitional care, custodial care, counseling and support services, prevention services;

            (5)    Staff qualifications; and

            (6)    Such other standards as are necessary for the safety and health of clients and patients.

    Section 13. That § 34-20A-34 be amended to read:

    34-20A-34. The Division of Alcohol and Drug Abuse division may acquire, hold, or dispose of real property or any interest therein in real property, and construct, lease, or otherwise provide facilities for the prevention of alcohol and drug abuse and facilities for the treatment of those persons suffering from alcohol and drug abuse and for intoxicated persons.

    Section 14. That § 34-20A-44 be amended to read:

    34-20A-44. The Division of Alcohol and Drug Abuse division shall inspect accredited prevention or treatment facilities to insure compliance with this chapter. For purposes of inspection, the division shall have access to the facility and its records at reasonable times and in a reasonable manner. This section does not apply to facilities accredited pursuant to accreditation by the Joint Commission, the Commission on Accreditation of Rehabilitation Facilities, an Indian Health Service's quality assurance review under the Indian Health Service Manual, Professional Standards-Alcohol/Substance Abuse, or the Council on Accreditation.

    Section 15. That § 34-20A-44.1 be amended to read:

    34-20A-44.1. If a public or private agency or facility is considered to be an accredited prevention or treatment facility by reason of compliance with accreditation by the Joint Commission, the Commission on Accreditation of Rehabilitation Facilities, an Indian Health Service's quality assurance review under the Indian Health Service Manual, Professional Standards-Alcohol/Substance Abuse, or the Council on Accreditation, as described in § 34-20A-2, the Division of Alcohol and Drug Abuse division retains the right of access to all facility premises and relevant records to monitor compliance or investigate complaints brought against the facility.

    Section 16. That § 34-20A-51 be amended to read:

    34-20A-51. Subject to rules adopted by the Division of Alcohol and Drug Abuse division, the administrator in charge of an accredited treatment facility may determine who shall be admitted for treatment. If a person is refused admission to the facility, the administrator, subject to rules adopted by the division, shall refer the person to another treatment facility for treatment if possible and appropriate.

    Section 17. That § 34-20A-66.1 be amended to read:

    34-20A-66.1. Payment for treatment under emergency commitment, or under protective custody pursuant to § 34-20A-55 if emergency commitment is not required, may be assessed to the individual, to a legally responsible relative or guardian, to the county of residence if indigent, or billed to the Division of Alcohol and Drug Abuse division through contract with an approved

treatment facility. Any payment for emergency commitment to the Human Services Center is subject to the requirements of chapter 27A-13.

    Section 18. That § 34-20A-72 be amended to read:

    34-20A-72. A petition filed under § 34-20A-70 shall be accompanied by a certificate of a licensed physician or a certified chemical dependency an addiction counselor either of whom has examined the person within two days before submission of the petition, unless the person whose commitment is sought has refused to submit to a medical examination or counselor assessment in which case the fact of refusal shall be alleged in the petition. The certificate shall set forth the physician's or the counselor's findings in support of the allegations of the petition. A physician or chemical dependency addiction counselor employed by the admitting facility is not eligible to provide certification.

    Section 19. That § 34-20A-75 be amended to read:

    34-20A-75. At the hearing the court shall hear all relevant testimony, including, if possible, the testimony of at least one licensed physician and one certified chemical dependency addiction counselor who have examined the person whose commitment is sought.

    Section 20. That § 34-20A-76 be amended to read:

    34-20A-76. If the person has refused to be examined by a licensed physician or a certified chemical dependency an addiction counselor, the person shall be given an opportunity to be examined by a court-appointed licensed physician or certified chemical dependency addiction counselor. If the person refuses and there is sufficient evidence to believe that the allegations of the petition are true, or if the court believes that more evidence is necessary, the court may order a temporary commitment and transportation by a law enforcement officer to an approved treatment facility for a period of not more than five days for purposes of a diagnostic examination.

    Section 21. That § 34-20A-76.1 be amended to read:

    34-20A-76.1. A licensed physician or certified chemical dependency addiction counselor appointed by the court to examine and assess a person for the purposes of involuntary commitment shall be paid by the county where the hearing and commitment proceedings take place. The physician or addiction counselor shall be compensated for such services in an amount fixed by the circuit judge. The county shall be reimbursed for such expense by the person if the person is financially able to do so. If the person is not financially able to pay such expense, the cost of physician or addiction counselor examination shall be paid to the county by the person legally bound for the support of such person if financially able to do so.

    Section 22. That § 34-20A-86 be amended to read:

    34-20A-86. The person whose commitment or recommitment is sought shall be informed of his the person's right to be examined by a licensed physician and a certified chemical dependency an addiction counselor of his the person's choice. If the person is unable to obtain a licensed physician or a certified chemical dependency an addiction counselor and requests examination by a physician or an addiction counselor, the court shall employ a licensed physician or a certified chemical dependency an addiction counselor.

    Section 23. That § 32-23-2.1 be amended to read:

    32-23-2.1. Any person convicted of a first offense pursuant to § 32-23-1 with a 0.17 percent or more by weight of alcohol in the person's blood shall, in addition to the penalties provided in § 32-23-2, be required to undergo a court-ordered evaluation by a chemical dependency counselor as defined in § 34-20A-2 an addiction counselor licensed or certified by the Board of Addiction and

Prevention Professionals pursuant to § 36-34-13.1 or a licensed or certified health care professional with specialized training in chemical dependency evaluation to determine if the defendant is chemically dependent. The cost of such evaluation shall be paid by the defendant. The recommendations of the evaluation shall be provided to the referring judge.

     Signed February 18, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\016.wpd
CHAPTER 16

(SB 162)

The State Board of Internal Control.


        ENTITLED, An Act to create the State Board of Internal Control and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act 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;

            (3)    "Internal control," a process that integrates the plans, activities, policies, attitudes, procedures, systems, resources, and efforts of an organization and that is designed to provide reasonable assurance that the organization will achieve its objectives and missions and to detect and prevent financial malfeasance;

            (3)    "Pass-through grant," a grant awarded by a federal entity to the state entity and transferred or passed to a sub-recipient by the state;

            (4)    "State agency," the Legislature, any constitutional officer, the Unified Judicial System, and any department, division, bureau, board, commission, committee, authority, or agency of the State of South Dakota;

            (5)    "Sub-recipient," an entity that expends a pass-through grant.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    There is hereby created a State Board of Internal Control that consists of seven members. Three members shall represent state agencies under 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 commissioner of the Bureau of Finance and Management, the state auditor, a Board of Regents administrator's designee, and a member appointed by the Chief Justice of the Supreme Court. Any four of the seven members constitutes a quorum. The commissioner of the Bureau of Finance and Management shall be chair of the board.

    Section 3. That the code be amended by adding a NEW SECTION to read:


    The board may promulgate rules, pursuant to chapter 1-26, to implement a system of internal control in accordance with internal control standards.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    The board shall meet monthly for the first twelve months, and shall meet at least quarterly after the first year. A record of the proceedings of the board shall be kept pursuant to § 1-25-3.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The Bureau of Finance and Management shall provide administrative support to the board. If necessary, the board shall seek the advice of the auditor-general.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    The board shall establish and maintain:

            (1)    Guidelines for an effective system of internal control to be implemented by state agencies that is in accordance with internal control standards;

            (2)    A code of conduct for use by state agencies excluding the Unified Judicial System; and

            (3)    A conflict of interest policy for use by state agencies excluding the Unified Judicial System.

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.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    The board shall create an annual work plan and report which shall be presented to the Governor and the Government Operations and Audit Committee.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    Each state agency shall designate an internal control officer. The board shall make available to each internal control officer guidelines and standards that the state agency shall implement and comply. The board may take other actions as necessary to carry out the purpose and intent of this Act.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    After the review of an audit in accordance with § 4-11-2.1, the auditor-general shall submit to the board a copy of any audit report correspondence sent to a state agency identifying audit findings pertaining to federal award programs administered by the state agency.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    The grant agreement for each grant, pass-through grant, or any other award granted by a state agency to a nonstate agency after July 1, 2016, shall be displayed on the website created pursuant to § 1-27-45.

    Each grant agreement shall include an attestation by the award recipient or sub-recipient that:

            (1)    A conflict of interest policy is enforced within the recipient's or sub-recipient's

organization;

            (2)    The Internal Revenue Service Form 990 has been filed, if applicable, in compliance with federal law, and is displayed immediately after filing on the recipient's or sub-recipient's website;

            (3)    An effective internal control system is employed by the recipient's or sub-recipient's organization; and

            (4)    If applicable, the recipient or sub-recipient is in compliance with the federal Single Audit Act, in compliance with § 4-11-2.1, and audits are displayed on the recipient's or sub-recipient's website.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    A state employee who suspects the existence of a conflict of interest, fraud, or theft shall report the matter immediately to any, of the following:

            (1)    The employee's immediate supervisor;

            (2)    The attorney general's office; or

            (3)    The Department of Legislative Audit.

    Section 12. That the code be amended by adding a NEW SECTION to read:

    Pursuant to § 3-6D-22, an employee may file a grievance with the Civil Service Commission if the employee believes that there has been retaliation because of reporting a violation of state law.

    Section 13. Whereas, this Act is necessary for the immediate preservation of the public peace, health, or safety, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 16, 2016
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\017.wpd
CHAPTER 17

(HB 1014)

State Historical Society surplus real estate to be sold.


        ENTITLED, An Act to authorize the sale of certain surplus real estate and to provide for the deposit of the proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. Upon the request of the State Historical Society referenced in § 1-18-3 and the Governor, the commissioner of school and public lands shall sell all or any portion of the following real estate under the control of the State Historical Society located in Sully County, South Dakota, and any related personal property and improvements:

    The Northwest Quarter of the Northwest Quarter and the East Half of the Northwest Quarter and the Northeast Quarter of the Southwest Quarter of Section 35, Township 116 North of Range 80

West of the 5th Principal Meridian, also described in the Warranty Deed, Mrs. Agnes B. Whitlock, Grantor to the State of South Dakota for the benefit of the State Historical Society consisting of 97.5 acres more or less.

    Section 2. Real property and related personal property and improvements on the property which are generally considered a part of the property described in section 1 of this Act, but not specifically included in the legal descriptions set out in section 1 of this Act, may be sold as though they were specifically described in section 1 of this Act.

    Section 3. The property described in this Act shall be appraised by the board of appraisal established by § 5-9-3 and sold according to the procedure established in §§ 5-9-6 to 5-9-9, inclusive, 5-9-11 to 5-9-15, inclusive, 5-9-28, and 5-9-36, subject to all applicable statutory and constitutional reservations.

    Section 4. The net proceeds from the sale of the property described in this Act shall be deposited into the permanent fund established by S.D. Const., Art. VIII, § 7, for the use and benefit of the State Historical Society.

    Section 5. Notwithstanding the provisions of this Act or any other law to the contrary, the State Historical Society and Governor may direct the commissioner of school and public lands to sell any property described in this Act to a political subdivision within which the property is located. The sale may be made without first offering the property for sale to the public. The sale price shall be at least the appraised value as determined by the board of appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed February 25, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\018.wpd
CHAPTER 18

(HB 1024)

Appropriation to repair state owned dams.


        ENTITLED, An Act to make an appropriation for the maintenance and repair of state owned dams and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of two hundred fifty thousand dollars ($250,000), or so much thereof as may be necessary, to the Office of School and Public Lands for the purposes of maintenance and repair on state owned dams.

    Section 2. The commissioner of school and public lands shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 7, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\019.wpd
CHAPTER 19

(HB 1047)

Extraordinary litigation expense appropriation.


        ENTITLED, An Act to make an appropriation for the payment of extraordinary litigation expenses and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of one million nine hundred seventy-four thousand five hundred two dollars ($1,974,502), or so much thereof as may be necessary, to the extraordinary litigation fund for payment of eligible expenses.

    Section 2. The commissioner of the Bureau of Administration shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 7, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\020.wpd
CHAPTER 20

(HB 1207)

Sale of surplus real estate at the Human Services Center.


        ENTITLED, An Act to authorize the sale of certain surplus real estate at the Human Services Center and to provide for the deposit of the proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. Upon the request of the Governor, the commissioner of school and public lands shall sell all or any portion of the following real estate located in Yankton County, South Dakota, and any related personal property and improvements located on the property:

            (1)    Certain property under the control of the Department of Social Services described generally as Tract 4 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (2)    Certain property under the control of the Department of Social Services described generally as Lot 3 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (3)    Certain property under the control of the Department of Social Services described

generally as Lot 4 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (4)    Certain property under the control of the Department of Social Services described generally as Lot 5 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (5)    Certain property under the control of the Department of Social Services described generally as Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (6)    Certain property under the control of the Department of Social Services described generally as Lot 6 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (7)    Certain property under the control of the Department of Social Services described generally as Lot A of Lot 4 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (8)    Certain property under the control of the Department of Social Services described generally as Lot A of Lot 5 of Tract 3 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (9)    Certain property under the control of the Department of Social Services described generally as Tract 1 of Lot C, being a subdivision of the Southwest Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (10)    Certain property under the control of the Department of Social Services described generally as Burbank Building Tract 1 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (11)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 4 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (12)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 3 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.;

            (13)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 2 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.; and

            (14)    Certain property under the control of the Department of Social Services described generally as Mead Building Tract 1 of Lot A, being a subdivision of the Southeast Quarter of Section 36, Township 94 North, Range 56 West of the 5th P.M.

    This real estate consists of a total of 51.93 acres more or less.

    Section 2. Real estate and related personal property and improvements on the property which are generally considered a part of the tracts described in section 1 of this Act, but not specifically included in the legal descriptions set out in section 1 of this Act, may be sold as provided in this Act as though they were specifically described in section 1 of this Act.

    Section 3. The real estate and other property described in section 1 of this Act shall be appraised by the Board of Appraisal established by § 5-9-3 and may be sold in any manner authorized by law,

subject to all applicable statutory and constitutional reservations.

    Section 4. The proceeds from the sale of the real estate and other property described in section 1 of this Act under the control of the Department of Social Services shall be deposited into the permanent fund established by S.D. Const., Art. VIII, § 7, for the use and benefit of the Human Services Center.

    Section 5. Notwithstanding the provisions of this Act or any other law to the contrary, the Governor may direct the commissioner of school and public lands to sell any real estate and related personal property described in section 1 of this Act to a political subdivision located within ten miles of the real estate and related personal property. The Governor may direct the commissioner of school and public lands to sell any real estate and related personal property described in subdivisions (10) to (14), inclusive, of section 1 of this Act, to the Yankton County Historical Society, Inc. The sale may be made without first offering the real estate and related personal property for sale to the public. The sale price shall be at least the appraised value as determined by the Board of Appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed February 29, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\021.wpd
CHAPTER 21

(HB 1208)

Sale of surplus real estate
at the South Dakota Developmental Center.


        ENTITLED, An Act to provide for the sale of certain surplus real estate at the South Dakota Developmental Center and to provide for the deposit of the proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. The provisions of any law to the contrary, upon the request of the Governor, the commissioner of school and public lands shall sell all or any portion of the following real estate and any related personal property and improvements located on the property:

    Certain property under the control of the Department of Human Services described generally as Lots 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20 and 21 of SDDC Subdivision in the East Half of Section 4, Township 116 North, Range 64 West of the 5th P.M. and the West Half of Section 3, Township 116 North, Range 64 West of the 5th P.M., Spink County, South Dakota, consisting of a total of 132.44 acres, more or less.

    Section 2. Real estate and related personal property and improvements on the property which are generally considered a part of the tracts described in section 1 of this Act but not specifically included in the legal descriptions set out in section 1 of this Act may be sold as provided in this Act as though they were specifically described in section 1 of this Act.

    Section 3. The real estate and other property described in section 1 of this Act shall be appraised by the Board of Appraisal established by § 5-9-3 and may be sold in any manner authorized by law, subject to all applicable constitutional reservations.

    Section 4. The proceeds from the sale of the real estate and other property described in section 1 of this Act as Lots 2, 3, 7, 9, 10, 11, 12, and 13, under the control of the Department of Human Services, less any expense associated with the sale including advertising, appraisal fees, surveying

costs, and demolition expenses, shall be deposited into the general fund.

    Section 5. The proceeds from the sale of the real estate and other property described in section 1 of this Act as Lots 4, 5, 6, 14, 15, 16, 18, 19, 20, and 21, under the control of the Department of Human Services shall be deposited into the permanent fund established by S.D. Const., Art. VIII, § 7, for the use and benefit of the South Dakota Developmental Center.

    Section 6. Notwithstanding the provisions of this Act or any other law to the contrary, the Governor may direct the commissioner of school and public lands to sell any real estate and related personal property and improvements described in section 1 of this Act to a political subdivision located within ten miles of the real estate and related personal property and improvements. The sale may be made without first offering the real estate and related personal property and improvements for sale to the public. The sale price shall be at least the appraised value as determined by the Board of Appraisal established by § 5-9-3, and is subject to all applicable statutory and constitutional reservations.

     Signed March 10, 2016
_______________
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Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\022.wpd
CHAPTER 22

(HB 1029)

Appropriation to fund the rural residency program.


        ENTITLED, An Act to make an appropriation to the Department of Health to fund the rural residency program and to declare an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated from the general fund the sum of two hundred five thousand dollars ($205,000), or so much thereof as may be necessary, to the Department of Health to support the development of a rural family medicine residency track for six medical students to address health care workforce shortages.

    Section 2. The secretary of the Department of Health shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this Act.

    Section 3. Any amounts appropriated in this Act not lawfully expended or obligated shall revert in accordance with the procedures prescribed in chapter 4-8.

    Section 4. Whereas, this Act is necessary for the support of the state government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

     Signed March 15, 2016
_______________
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LEGISLATURE AND STATUTES

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\023.wpd
CHAPTER 23

(SB 91)

Information provided to persons who sign initiated or referred laws.


        ENTITLED, An Act to revise certain provisions concerning the information on the forms provided to persons who sign initiated constitutional amendments, referred laws, or initiated measures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-1-1.1 be amended to read:

    2-1-1.1. The petition as it is to be circulated for an initiated constitutional amendment shall be filed with the secretary of state prior to circulation for signatures and shall:

            (1)    Contain the full text of the initiated constitutional amendment;

            (2)    Contain the date of the general election at which the initiated constitutional amendment is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized form that includes the names and addresses of the petition sponsors; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated constitutional amendment as prepared by the attorney general; the name, phone number, and email address of each petition sponsor; and a statement whether the petition circulator is a volunteer or paid petition circulator and, if a paid circulator, the amount the circulator is being paid. The form shall be approved by the secretary of state prior to circulation.

    For any initiated constitutional amendment petition, no signatures may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated constitutional amendment petition shall be filed with the secretary of state at least one year before the next general election. A sworn affidavit, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 2. That § 2-1-1.2 be amended to read:

    2-1-1.2. The petition as it is to be circulated for an initiated measure shall be filed with the secretary of state prior to circulation for signatures and shall:


            (1)    Contain the full text of the initiated measure;

            (2)    Contain the date of the general election at which the initiated measure is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized form that includes the names and addresses of the petition sponsors; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated measure as prepared by the attorney general; the name, phone number, and email address of each petition sponsor; and a statement whether the petition circulator is a volunteer or paid petition circulator and, if a paid circulator, the amount the circulator is being paid. The form shall be approved by the secretary of state prior to circulation.

    For any initiated measure petition, no signatures may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated measure petition shall be filed with the secretary of state at least one year before the next general election. A sworn affidavit, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 3. That § 2-1-3.1 be amended to read:

    2-1-3.1. The petition as it is to be circulated for a referred law shall be filed with the secretary of state prior to circulation for signatures and shall:

            (1)    Contain the title of the referred law;

            (2)    Contain the effective date of the referred law;

            (3)    Contain the date of the general election at which the referred law is to be submitted;

            (4)    Be accompanied by a notarized form that includes the names and addresses of the petition sponsors; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition shall be filed with the secretary of state within ninety days after the adjournment of the Legislature which passed the referred law. A sworn affidavit, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    The petition circulator shall provide to each person who signs the petition a form containing the title of the referred law; the name, phone number, and email address of each petition sponsor; and a statement whether the petition circulator is a volunteer or paid petition circulator and, if a paid circulator, the amount the circulator is being paid. The form shall be approved by the secretary of state prior to circulation.

    Section 4. That § 12-1-3 be amended by adding a NEW SUBDIVISION to read:


    "Paid circulator," any person who receives money or anything of value for collecting signatures for a petition;

     Signed March 14, 2016
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CHAPTER 24

(HB 1037)

Initiated measure petition requirements revised.


        ENTITLED, An Act to revise certain provisions concerning petitions for initiated constitutional amendments, initiated measures, and candidates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-1-1.1 be amended to read:

    2-1-1.1. The petition as it is to be circulated for an initiated constitutional amendment shall be filed with the secretary of state prior to circulation for signatures and shall:

            (1)    Contain the full text of the initiated constitutional amendment;

            (2)    Contain the date of the general election at which the initiated constitutional amendment is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized affidavit form signed by each person who is a petition sponsor that includes the names name and addresses address of the each petition sponsors sponsor; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated constitutional amendment as prepared by the attorney general. The form shall be approved by the secretary of state prior to circulation.

    For any initiated constitutional amendment petition, no signatures signature may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated constitutional amendment petition shall be filed with the secretary of state at least one year before the next general election. A sworn notarized affidavit form, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 2. That § 2-1-1.2 be amended to read:

    2-1-1.2. The petition as it is to be circulated for an initiated measure shall be filed with the secretary of state prior to circulation for signatures and shall:



            (1)    Contain the full text of the initiated measure;

            (2)    Contain the date of the general election at which the initiated measure is to be submitted;

            (3)    Contain the title and explanation as prepared by the attorney general;

            (4)    Be accompanied by a notarized affidavit form signed by each person who is a petition sponsor that includes the names name and addresses address of the each petition sponsors sponsor; and

            (5)    Be accompanied by a statement of organization as provided in § 12-27-6.

    The petition circulator shall provide to each person who signs the petition a form containing the title and explanation of the initiated measure as prepared by the attorney general. The form shall be approved by the secretary of state prior to circulation.

    For any initiated measure petition, no signatures signature may be obtained more than twenty-four months preceding the general election that was designated at the time of filing of the full text. The initiated measure petition shall be filed with the secretary of state at least one year before the next general election. A sworn notarized affidavit form, signed by at least two-thirds of the petition sponsors, stating that the documents filed constitute the entire petition and to the best of the knowledge of the sponsors contains a sufficient number of signatures shall also be filed with the secretary of state. The form of the petition and affidavit shall be prescribed by the State Board of Elections.

    Section 3. That § 12-13-25.1 be amended to read:

    12-13-25.1. Following receipt of the written comments of the director of the Legislative Research Council, the sponsors shall submit a copy of the initiative or initiated amendment to the Constitution in final form, to the attorney general. The attorney general shall prepare an attorney general's statement which consists of a title and explanation. The title shall be a concise statement of the subject of the proposed initiative or initiated amendment to the Constitution. The explanation shall be an objective, clear, and simple summary to educate the voters of the purpose and effect of the proposed initiated measure or initiated amendment to the Constitution. The attorney general shall include a description of the legal consequences of the proposed amendment or initiated measure, including the likely exposure of the state to liability if the proposed amendment or initiated measure is adopted. The explanation may not exceed two hundred words in length. The attorney general shall file the title and explanation with the secretary of state and shall provide a copy to the sponsors within sixty days of receipt of the initiative or initiated amendment to the Constitution.

    If the petition is filed as set forth in § 2-1-2 §§ 2-1-1.1 and 2-1-1.2, the attorney general shall deliver to the secretary of state before the third Tuesday in May a simple recitation of a "Yes" or "No" vote. On the printed ballots, the title shall be followed by the explanation and the explanation shall be followed, if applicable, by the fiscal impact statement prison or jail population cost estimate prepared pursuant to § 2-1-20 and then followed by the recitation.

    Section 4. That chapter 2-1 be amended by adding a NEW SECTION to read:

    Terms used in this chapter mean:

            (1)    "Petition circulator," any resident of the state of South Dakota who is at least eighteen years of age and who circulates a nominating petition or other petition for the purpose of placing a candidate or issue on any election ballot;

            (2)    "Petition sponsor," any person who proposes the placement of a statewide ballot measure

on the ballot.

     Signed February 12, 2016
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CHAPTER 25

(SB 143)

Legislative Planning Committee
to implement performance management review.


        ENTITLED, An Act to require the Legislative Planning Committee to implement a performance management review process.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 2-6 be amended by adding a NEW SECTION to read:

    The Legislative Planning Committee shall develop and implement a performance management review process that provides the Legislature with a consistent system to evaluate the efficiency and effectiveness of state agencies and to provide additional government transparency and accountability to the public.

    Section 2. That chapter 2-6 be amended by adding a NEW SECTION to read:

    For the purposes of this Act, performance management is an ongoing, systematic approach to improving outcomes with a focus on accountability for performance by utilizing data-based measurements. For the purposes of this Act, a state agency is any department or other unit of government in the executive branch of state government, but does not include any unit of local government.

    Section 3. That chapter 2-6 be amended by adding a NEW SECTION to read:

    The Legislative Planning Committee shall establish a schedule whereby the committee reviews the performance management of each state agency at least once every three years. The performance management review shall include the following:

            (1)    The strategic goals of each agency with specific, quantifiable outcomes and measurements to track progress toward those goals;

            (2)    A description of how the resources allocated to the agency's programs and strategies will result in the agency's defined outcomes; and

            (3)    Identification of the performance measurements that will be used to determine if the agency is achieving desired outcomes.

    Section 4. That chapter 2-6 be amended by adding a NEW SECTION to read:

    Once the Legislative Planning Committee has completed a performance management review of a state agency, and the committee has approved the agency's desired outcomes and accompanying performance measures, the agency shall provide the committee with a report highlighting up to six of the performance measures that show the progress being made toward the desired outcomes. Thereafter, the report shall be updated by the agency annually and submitted to the committee no

later than November fifteenth. Each agency report shall include the source of the information and references to where legislators can obtain further information.

    Section 5. That chapter 2-6 be amended by adding a NEW SECTION to read:

    The Legislative Research Council shall compile the reports provided pursuant to section 4 of this Act, and distribute a compiled report to each member of the Legislative Planning Committee, the chair and vice chair of the Joint Committee on Appropriations, and the chair and vice chair of the Government Operations and Audit Committee. During the first week of the legislative session each year, members of the Legislative Planning Committee shall present and review the compiled report with legislators in each legislative body. Individual reports may also be distributed to the chair of any standing committee of the Legislature as determined by the chair of the Legislative Planning Committee.

    To ensure public accountability, the Legislative Research Council shall develop a website that contains the compiled report and the references where further information can be located.

     Signed March 16, 2016
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CHAPTER 26

(SB 1)

Executive Board of the Legislative Research Council,
authority revised.


        ENTITLED, An Act to revise certain provisions regarding the Executive Board of the Legislative Research Council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-9-2 be amended to read:

    2-9-2. The Legislative Research Council shall have an executive board, to be known as the Executive Board of the Legislative Research Council, which shall consist of fifteen members, as follows: four members from the Senate and five members from the House of Representatives, to be elected by a majority vote by their respective legislative bodies in party caucus before each regular session of the Legislature held in odd-numbered years, and ex officio the president pro tempore, majority leader, and minority leader of the Senate and the speaker, majority leader, and minority leader of the House of Representatives elected in such regular session. The number of senate and house members on the executive board shall remain constant, and any vacancy occurring shall be filled by the respective legislative bodies in party caucus. If a vacancy occurs in the ex officio position on the board for the president pro tempore, the vacancy on the board shall be filled by the majority party caucus until the Senate elects a new president pro tempore. If a vacancy occurs in the ex officio position on the board for the speaker, the vacancy on the board shall be filled by the speaker pro tempore until the House of Representatives elects a new speaker. No board member, excepting ex officio, may serve more than three successive terms.

    Section 2. That § 2-9-3 be amended to read:

    2-9-3. In each term of the executive board operating in an odd-numbered year, the The speaker of the House of Representatives shall be is the chair of the executive board, and the president pro tempore of the Senate shall be is the vice chair from the first day of the regular session of the

Legislature in an odd-numbered year to the day prior to the first day of the regular session of the Legislature in an even-numbered year, inclusive. In each term of the executive board operating in an even-numbered year, the The president pro tempore of the Senate shall be is the chair of the executive board, and the speaker of the House of Representatives shall be is the vice chair from the first day of the regular session of the Legislature in an even-numbered year to the day prior to the first day of the regular session of the Legislature in an odd-numbered year, inclusive. If a vacancy occurs in the position of speaker of the House of Representatives, the speaker pro tempore shall serve as chair or vice chair of the board, as provided by this section, until the House of Representatives elects a new speaker. If a vacancy occurs in the position of president pro tempore, the majority party caucus shall appoint a Senate member of the board to serve as chair or vice chair of the board, as provided by this section, until the Senate elects a new president pro tempore.

    Section 3. That § 2-9-5 be amended to read:

    2-9-5. The executive board shall meet as often as may be necessary to perform its duties; provided that in any event, it. The board shall meet at least four times each year. All regular meetings shall be held at the state capitol. A majority of the members shall constitute constitutes a quorum, and a majority thereof shall have authority to of the quorum may act on any matter falling within the scope of the executive board's duties, powers, and authority. The board shall make its own rules and regulations, keep complete minutes of its meetings, and prepare an annual report to be placed on file in the Legislative Research Council Office.

    Section 4. That § 2-9-8 be amended to read:

    2-9-8. The executive board is hereby authorized and empowered to shall appoint a director of the Legislative Research Council and. The director shall employ such clerks, assistants, and other help the members of the Legislative Research Council staff and provide such procure the supplies and equipment as may be necessary to assist the Legislature.

     Signed March 10, 2016
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CHAPTER 27

(HB 1238)

Powers and duties of the Executive Board
of the Legislative Research Council, revised.


        ENTITLED, An Act to revise the powers and duties of the Executive Board of the Legislative Research Council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-9-4 be amended to read:

    2-9-4. The executive board shall:

            (1)    Instigate research and collect information concerning the government and general welfare of the state;

            (2)    Investigate and make recommendations concerning important issues of public policy and questions of statewide interest;

            (3)    Prepare a legislative program in the form of bills, or otherwise, as in its opinion the welfare of the state may require, to be presented to the Legislature;

            (4)    Cooperate with the administration in devising means of enforcing the law;

            (5)    Study, inquire, make recommendations and propose bills in any phase or branch of state government so deemed advisable and necessary;

            (6)    Appoint and name committees from the members of the State Legislative Research Council, and assign to such committee or committees appropriate subjects and projects of whatever character and nature the executive board deems advisable. Each member of the council is entitled to membership on one study committee of his the member's choice insofar as practicable;

            (7)    Conduct legislative oversight and management analysis of the executive branch of government by means of a selective program of performance auditing and cooperate with the administration in improving the efficiency and effectiveness of administrative methods;

            (8)    Review and make recommendations for further legislative action regarding the opinions of state and federal courts which have sought to interpret the intent of South Dakota legislative acts; and

            (9)    Allocate funds to the House of Representatives and the Senate to pay for out-of-state travel and salary or per diem costs incurred by members, and to pay for in-state travel and salary or per diem costs incurred by members, excluding costs associated with any legislative session. The Legislative Research Council shall make payments to representatives for costs and travel approved by the speaker of the House of Representatives, from the funds allocated to the House of Representatives, and shall make payments to senators for costs and travel approved by the president pro tempore of the Senate, from the funds allocated to the Senate. Any payment decision of the speaker of the House of Representatives may be appealed to the members of the executive board from the House of Representatives. Any payment decision of the president pro tempore of the Senate may be appealed to the members of the executive board from the Senate. No funds may be paid beyond the amounts allocated to each body.

     Signed March 16, 2016
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CHAPTER 28

(SB 150)

Additional interns for the minority party.


        ENTITLED, An Act to revise provisions related to the legislative intern program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 2-9 be amended by adding a NEW SECTION to read:

    The Executive Board of the Legislative Research Council shall assign college student interns to the legislative branch of government. The Executive Board shall set the number of interns and divide the total number of interns between the political parties in each chamber in proportion to the party

membership in each chamber as nearly as is practicable. The minority party in each house shall have a minimum of three interns.

    Section 2. That § 2-9-17 be repealed.

    Section 3. That § 2-9-18 be repealed.

    Section 4. That § 2-9-18.1 be repealed.

    Section 5. That § 2-9-19 be repealed.

     Signed March 9, 2016
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CHAPTER 29

(SB 32)

Legislation enacted in 2015, codified.


        ENTITLED, An Act to codify legislation enacted in 2015.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 2-16-13 be amended to read:

    2-16-13. The official code of laws of the State of South Dakota, which may be referred to as the code, consists of all the statutes of a general and permanent nature contained in:

            (1)    The 2004 revision of volume 1;

            (2)    The 2012 revision of volume 2;

            (3)    The 2013 revision of volume 3;

            (4)    The 2004 revision of volume 4;

            (5)    The 2004 revision of volume 5;

            (6)    The 2004 revision of volume 6;

            (7)    The 2010 revision of volume 7;

            (8)    The 2004 revision of volume 8;

            (9)    The 2004 revision of volume 9;

            (10)    The 2014 revision of volume 10;

            (11)    The 2014 revision of volume 10A;

            (12)    The 2014 revision of volume 11;

            (13)    The 2004 revision of volume 12;

            (14)    The 2004 revision of volume 13;

            (15)    The 2006 revision of volume 14;

            (16)    The 2004 revision of volume 15;

            (17)    The 2013 revision of volume 16;

            (18)    The 2004 revision of volume 17;

            (19)    The 2004 revision of volume 18;

            (20)    The 2011 revision of volume 19;

            (21)    The 2011 revision of volume 19A;

            (22)    The 2011 revision of volume 20;

            (23)    The 2013 revision of volume 21;

            (24)    The 2004 2015 revision of volume 22;

            (25)    The 2015 revision of volume 22A;

            (26)    The 2004 revision of volume 23;

            (26)(27)    The 2004 revision of volume 24;

            (27)(28)    The 2004 revision of volume 25;

            (28)(29)    The 2004 revision of volume 26;

            (29)(30)    The 2007 revision of volume 27;

            (30)(31)    The 2004 revision of volume 28;

            (31)(32)    The 2004 revision of volume 29;

            (32)(33)    The 2012 revision of volume 30;

            (33)(34)    The 2012 revision of volume 31;

            (34)(35)    The 2004 revision of volume 32;

            (35)(36)    The 2004 revision of volume 33;

            (36)(37)    The 2009 2015 revision of volume 34;

            (37)(38)    The 2004 revision of the Parallel Tables volume;

            (38)(39)    The December 2014 2015 Interim Annotation Service of the South Dakota Codified Laws beginning with Title 1, chapter 1-1 and ending with Title 62, chapter 62-9; and

            (39)(40)    The 2014 2015 cumulative annual pocket parts and supplementary pamphlet.

    Section 2. That § 2-16-15 be amended to read:

    2-16-15. No provision of the code enacted by § 2-16-13, as to which any action or proceeding, civil or criminal, has been commenced prior to July 1, 2015 2016, to determine whether or not such provision was constitutionally enacted, is validated by the enactment of this code.

    The enactment of the code:

            (1)    Does not affect the validity of any transaction;

            (2)    Does not impair the curative or legalizing effect of any statute; and

            (3)    Does not release or extinguish any penalty, confiscation, forfeiture, or liability; which accrued, occurred, or took effect prior to the time the code took effect.

    Section 3. That § 2-16-16 be amended to read:

    2-16-16. All statutes, other than this code, enacted at the 2015 2016 session of the Legislature shall be deemed to have been enacted subsequently to the enactment of this code. If any such statute repeals, amends, contravenes, or is inconsistent with the provisions of this code, the provisions of the statute shall prevail. Any enactment in the 2015 2016 session of the Legislature which cites South Dakota Codified Laws for the purpose of amendment or repeal, shall be construed as having reference to the code enacted by § 2-16-13.

     Signed February 8, 2016
_______________
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PUBLIC OFFICERS AND EMPLOYEES

_______________


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CHAPTER 30

(HB 1056)

Veterans' preference in employment revised.


        ENTITLED, An Act to revise certain provisions relating to the veterans' preference in employment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 3-3-1 be amended to read as follows:

    3-3-1. In all public departments and subdivisions and upon all public works of this state and of the counties, municipalities, and school districts of this state, any veteran, as defined in § 33A-2-1, who is a citizen of the United States, shall receive preference for appointment, employment, and promotion. Age, loss of limb, or other physical impairment which does not in fact incapacitate does not disqualify the veteran if the veteran possesses the qualifications and business capacity necessary to discharge the duties of the position involved. A veteran who has a service-connected disability shall be given a preference over a nondisabled veteran. In order to determine if the veterans' preference applies, each applicant for employment under this chapter shall complete an employment application on which the applicant is asked if the applicant is a veteran as defined by § 33A-2-1.


    Section 2. That § 3-3-2 be amended to read as follows:

    3-3-2. If a veteran as defined in § 33A-2-1 applies for appointment for employment under this chapter, the officer, board, or person whose duty it is to appoint or employ some person to fill the position shall, before appointing or employing anyone to fill the position, investigate the qualifications of the applicant. If the applicant is of good moral character and can perform the duties of the position, the officer, board, or person shall appoint the applicant to the position possesses at least the minimum qualifications necessary to fill the position, the officer, board, or person shall interview the applicant.

    Section 3. That chapter 3-3 be amended by adding a NEW SECTION to read:

    Beginning on July 1, 2016, the Department of Veterans Affairs shall coordinate with the Veterans Commission and the South Dakota Veterans Council to create informative materials about current state laws pertaining to veterans' preference in employment to be both posted on the Department of Veterans Affairs website for public access and for distribution by the council and its member organizations.

     Signed February 18, 2016
_______________
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CHAPTER 31

(SB 14)

South Dakota Retirement System
revise and repeal provisions related to retirement.


        ENTITLED, An Act to revise certain administrative provisions and repeal certain obsolete provisions concerning the South Dakota Retirement System.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 3-12-52 be amended to read:

    3-12-52. The Board of Trustees board shall meet at least twice each year, and shall adopt its own rules of procedure. A majority of trustees constitutes a quorum. At the first meeting of each fiscal year the board shall elect from the board's membership a chair and a vice chair. At least eight concurrent votes and a majority of the members present are required for a decision by the board for any of its meetings.

    Section 2. That § 3-12-55 be amended to read:

    3-12-55. The Board of Trustees board shall appoint an administrator executive director, qualified by training and experience, to serve at the pleasure of the Board of Trustees board. The annual salary of the administrator executive director may be adjusted annually by the same rate appropriated as the across-the-board increase to base salaries of state employees under the General Appropriations Act in each corresponding year.

    Before May first of each year, the board shall recommend any additional salary adjustment above the across-the-board increase for the administrator executive director for the upcoming fiscal year. This salary adjustment is not effective unless it is approved by a majority vote of the members of the Retirement Laws Committee. The administrator executive director may hire additional employees as may be required to transact the business of the retirement system and shall fix the remuneration

for such services. The board shall require the bonding of the administrator executive director in an amount set by the board which shall be included under the state employees' blanket bond. The premium may be charged to the fund.

    Section 3. That § 3-12-56 be amended to read:

    3-12-56. Applications for membership for new or additional benefits, credited service, or benefit payments which may be granted by the Board of Trustees board shall be made to the administrator executive director on forms approved by the board.

    Section 4. That § 3-12-57.1 be amended to read:

    3-12-57.1. Any person aggrieved by a determination made by the system's staff may request review of the determination and a decision by the administrator executive director. The person, if then aggrieved by the administrator's executive director's decision, may appeal the decision, if the person files a written notice of appeal with the administrator executive director within thirty days of the date of the decision. The notice shall identify the person appealing and the decision appealed. The appeal shall be conducted by a hearing examiner in accordance with chapter 1-26. The hearing examiner, after hearing the evidence in the matter, shall make proposed findings of fact and conclusions of law, and a proposed decision. The administrator executive director shall accept, reject, or modify those findings, conclusions, and decision. The administrator executive director may arrange for the assistance of private counsel throughout the administrator's executive director's review of the proposal. The administrator's executive director's action constitutes the final agency decision. The final agency decision may be appealed to circuit court pursuant to chapter 1-26.

    Section 5. That § 3-12-61 be amended to read:

    3-12-61. The South Dakota Retirement System expense fund is hereby continued and the Board of Trustees board is hereby authorized to transfer from the South Dakota Retirement System fund an annual amount not to exceed three percent of the annual contributions received by the system, and the moneys so money transferred are hereby is appropriated for the payment of the administrative costs of the system, provided that the. The board shall report its proposed annual budget to the Legislature for its approval, within the budget report of the Department of Labor and Regulation. Expenditures from all funds shall be disbursed on warrants drawn by the state auditor and shall be supported by vouchers approved by the administrator executive director of the system.

    Section 6. That § 3-12-62.1 be amended to read:

    3-12-62.1. All personnel hired on or after July 1 June 30, 1980, by the divisions of the Department of Labor and Regulation established by §§ 61-2-10 and 61-2-10.1 shall be members of the system. Any individual so employed prior to before July 1, 1980, may elect to become a member of the system, if that election is made prior to before July 1, 1981. Benefits accrued to a member prior to the date of such election shall be continued and may not be considered as other public benefits, as defined in subdivision 3-12-47(49), for the purposes of calculating or offsetting any benefit resulting from participation in the system. Credited service earned under the retirement system provided by chapter 61-2 may not be counted for the purpose of calculation of benefits under chapter 3-12. For any individual who elects to be a member of the system pursuant to this section, credited service earned under the retirement system provided by chapter 61-2 shall be counted for the purpose of vesting under chapter 3-12 and for the eligibility requirements under §§ 3-12-95 and 3-12-98, provided that for any family or disability benefits pursuant to this chapter, if contributions made to the system provided under chapter 61-2 are not withdrawn.

    Section 7. That § 3-12-63 be amended to read:

    3-12-63. Membership in the system shall exclude the following:


            (1)    All elective officers except justices and judges, unless such person elects and is otherwise qualified to become a member of the system;

            (2)    All personnel in the Department of Labor and Regulation who were employed prior to before July 1, 1980, and who elect to remain participants in the retirement system provided by chapter 61-2;

            (3)    The governing body of any participating county, municipality, or other political subdivision; and

            (4)    All personnel employed by the municipality of Sioux Falls prior to before July 1, 2013. However, any person employed prior to before July 1, 2013, who separates from service with the municipality of Sioux Falls and is subsequently rehired by the municipality of Sioux Falls and begins working after June 30, 2013, as a permanent full-time employee as defined in subdivision 3-12-47(54), shall be a member of the system.

    Section 8. That § 3-12-67.1 be amended to read:

    3-12-67.1. Notwithstanding the provisions of § 3-12-67, any employee of the municipality of Sioux Falls who begins working after June 30, 2013, as a permanent full-time employee as defined in subdivision 3-12-47(54) shall be a member of the system if the municipality of Sioux Falls elects to be a participating unit by a duly passed resolution of its governing body.

    Section 9. That § 3-12-69 be amended to read:

    3-12-69. Employees of an eligible political subdivision or public corporation not participating in the systems consolidated into the system created by this chapter, may become a participating unit in the system if the unit commits to deposit an amount equal to the present value of the benefits earned to date, based on the employee's prior service to the unit to be covered by the system. The expense of the actuarial determination of this amount shall be borne by the applicant. All eligible employees of an applicant shall participate in the system upon admission. If the unit is unable to deposit this amount in a single sum, the unit shall have the option to pay the amount by periodic level installments over a period up to twenty years, the value of which, when discounted for compound interest at the effective rate assumed rate of return, is equal to the amount due at the date of participation.

    Section 10. That § 3-12-72 be amended to read:

    3-12-72. All employee and employer contributions to the system and the necessary supporting data shall be transmitted by the employer at least monthly to the administration office of the system. Each such monthly transmission for each respective calendar month shall be completed by the fifteenth day of the following month. All supporting data shall be transmitted electronically in a format determined by system personnel. All contributions shall be deposited with the state treasurer in the fund duly established to administer this chapter. If any participating unit fails to deliver contributions with respect to compensation paid in any month and the necessary supporting data by the fifteenth day of the following month, the participating unit shall pay to the system a penalty equal to five percent of the delinquent contributions. The delinquent contributions and the penalty shall bear interest at the assumed rate of return from the date due until the date paid. In calculating accumulated contributions pursuant to subdivision 3-12-47(2), all contributions with respect to compensation paid in any fiscal year shall be included in the calculation of interest credited for that fiscal year.

    Section 11. That § 3-12-72.4 be amended to read:

    3-12-72.4. If a participating unit determines that a governmental function is to be privatized, the participating unit shall pass a resolution to that effect determining the date that its employees will

cease to be public employees eligible for membership in the system. The participating unit shall notify the system and the employees affected of its the resolution and, after the effective date, cease to make contributions to the South Dakota Retirement System as required in §§ 3-12-71 and 3-12-72. Any member affected by privatization is entitled to the benefits accrued as of the effective date under the provisions of chapter 3-12. For the purposes of determining eligibility for vesting pursuant to subdivision § 3-12-47(73) and early retirement pursuant to § 3-12-106, years of service with the successor employer shall be considered.

    Section 12. That § 3-12-74 be amended to read:

    3-12-74. If any participating unit becomes delinquent thirty or more days by failure or refusal to pay any amounts due to the system, the state treasurer shall, upon certification by the administrator executive director of the delinquency, withhold and deduct the amount of the delinquency, penalty, and interest as specified in § 3-12-72 from the next succeeding payment or payments of any money in the hands of the state treasurer due and payable to the participating unit.

    Section 13. That § 3-12-77.3 be amended to read:

    3-12-77.3. Any rights which have terminated pursuant to the provisions of § 3-12-77 or 3-12-77.1 may be reinstated upon presentation to the system administrator executive director of a request for reinstatement of those rights and competent evidence of the rights.

    Section 14. That § 3-12-81.1 be amended to read:

    3-12-81.1. If a retired member becomes reemployed as a permanent full-time employee by a participating unit, the member first shall have terminated the member's employment relationship with the initial participating unit, as outlined in subdivision 3-12-47(70) as the term, terminated, is defined in this chapter and as required pursuant to Revenue Ruling 57-115 by the Internal Revenue Service. The initial participating unit's system representative shall certify to the system that the termination of the employment relationship took place. In addition, any second participating unit shall subject the member shall have been subject to all proceedings and requirements associated with the hiring and employment of any new employee by the second participating unit, and that unit's system representative shall so certify to the system. If a single participating unit is both the member's initial participating unit and the member's second participating unit, it the unit shall follow all termination procedures and all hiring procedures relative to the member as outlined by this section, and its chief executive officer, the officer's agent, or the chair of its the unit's governing commission or board shall so certify.

    Section 15. That § 3-12-82 be amended to read:

    3-12-82. If less than three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) is acquired after a retired member's reentry into covered employment, the member upon subsequent retirement shall receive a refund of the member's accumulated contributions.

    If three years or more of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) are acquired after a retired member's reentry into covered employment, the member upon subsequent retirement may receive either a refund of the member's accumulated contributions or an additional allowance based upon the member's credited service and final compensation earned during such reentry. Only the member's credited service from the subsequent employment shall be taken into account in calculating a reduction pursuant to § 3-12-106, if any, in the member's additional allowance. In addition, the annual increase applied to the original allowance pursuant to § 3-12-88 shall be eliminated for such the period of reemployment, unless the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reentered covered employment as a Class A member.

    The provisions of this section apply to any member who retired without any reduction in benefits pursuant to § 3-12-106 and who reenters covered employment on or after July 1 June 30, 2004, but prior to before April 1, 2010.

    Section 16. That § 3-12-86.1 be amended to read:

    3-12-86.1. If a member on leave of absence performing initial qualified military service dies, the member shall be considered to have returned from the leave of absence on the day prior to before the member's death and become a contributing member for purposes of survivor benefits pursuant to § 3-12-95 § 3-12-95.5, if the member has at least one year of credited service prior to the member's death, including the initial period of qualified military service. If the member was contributing for additional survivor protection benefits pursuant to § 3-12-104 immediately prior to before the leave of absence, the member shall be considered to have resumed such the contributions on the day prior to before the member's death.

    If a member on leave of absence performing initial qualified military service becomes disabled pursuant to the disability criteria set out in chapter 3-12 and ARSD chapter 62:01:04, the member shall be considered to have returned from the leave of absence on the day prior to before the member's discharge date and become a contributing member for purposes of eligibility for disability benefits pursuant to § 3-12-98 § 3-12-201, if the member has at least three years of credited service including the period of initial qualified military service. The provisions of § 3-12-98 § 3-12-201 notwithstanding, the member need not have been deemed to be a contributing member on the date of the member's disabling event.

    Section 17. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Beginning January 1, 2009, to the extent required by § 414(u)(12) of the Internal Revenue Code, a member receiving differential wage payments, as defined under § 3401(h)(2) of the Internal Revenue Code, from a member's employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under § 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated members in a reasonably equivalent manner.

    Section 18. That § 3-12-87 be amended to read:

    3-12-87. Payment of a deposit with the system for credited service pursuant to §§ 3-12-83 to 3-12-86, inclusive, shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic, level installments over a period of up to ten years, the value of which, when discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due the system, but, unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. In the event If the periodic payments are not completed or paid when due, the administrator executive director may make an appropriate adjustment to the credited service, benefits payable under this chapter, or schedule of payments to allow for the default. Any member participating in installment payments pursuant to this section prior to before July 1, 1989, shall have the balance due on July 1, 1989, recalculated pursuant to §§ 3-12-83 and 3-12-84 and shall have the installment payments due on or after July 1 June 30, 1989, recalculated accordingly. The provisions of this section apply only to installment payment purchases of credited service that are not tax-deferred, but and do not apply to tax-deferred purchases pursuant to § 3-12-83.2.

    Section 19. That § 3-12-95.2 be amended to read:

    3-12-95.2. The conservator and custodian provisions of subdivision 3-12-95(2) and § 3-12-95.1 notwithstanding, the benefit becomes payable directly to a child when the child reaches eighteen

years of age. The benefit shall be eliminated when the child becomes ineligible pursuant to subdivision 3-12-47(14).

    Section 20. That § 3-12-95.3 be amended to read:

    3-12-95.3. That The portion of a family benefit that is payable on account of children pursuant to subdivision 3-12-95(1) shall be eliminated as each child becomes ineligible pursuant to subdivision 3-12-47(14). The benefit shall be eliminated altogether when the youngest child becomes ineligible pursuant to subdivisions 3-12-47(14).

    Section 21. That § 3-12-98 be amended to read:

    3-12-98. A contributing member who becomes disabled and who has acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) since the member's most recent entry into active status and prior to becoming disabled or was disabled by accidental means while performing usual duties for an employer, is eligible for a disability benefit if the disability is expected to be of long, continued, and indefinite duration of at least one year. In order to be eligible for a disability benefit, a member must be disabled on the date the member's contributory service ends. Any member who fails to file an application for disability benefits with the administrator executive director within three years of after the date on which the member's contributory service ends, forfeits all rights to disability benefits. Any information required for a complete application must be received within one year after the application for disability benefits was received. If the required information is not received by the system within one year after the application is received, the member may reapply. For purposes of this section, a transfer within a participating unit, or a change in employment from one participating unit to another participating unit if there is no break in contributory service, does not constitute a new entry into active status. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to before July 1, 2015.

    Section 22. That § 3-12-99.1 be amended to read:

    3-12-99.1. That portion of a disability benefit that is payable on account of children shall be eliminated as each child becomes ineligible pursuant to subdivision 3-12-47(14). However, that the portion of a disability benefit that is payable on account of children shall increase if a disabled member gains an additional child who is eligible pursuant to subdivision 3-12-47(14). All other provisions in § 3-12-101 do not apply to members receiving a disability benefit pursuant to this chapter. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to before July 1, 2015.

    Section 23. That § 3-12-114 be amended to read:

    3-12-114. If any change or error in the records of the system or any participating unit results in any person receiving from the system less than the person would have been entitled to receive had the records been correct, the administrator executive director shall correct the error and, as far as practicable, shall adjust the payment to provide the person the amount to which the person is correctly entitled.

    If any change or error in the records of the system or any participating unit results in any person receiving from the system more than the person would have been entitled to receive had the records been correct, the administrator executive director shall correct the error and, as far as practicable, shall recover the overpayment to reflect the amount to which the person is correctly entitled. The board shall promulgate rules, pursuant to chapter 1-26, concerning the methods by which an overpayment shall be repaid, including an actuarial equivalent. However, the recovery of an overpayment is limited to the amount attributable to any error that occurred during the six-year period immediately prior to before the discovery of the error. This limitation does not apply in the case of fraud, intentional misrepresentation, material omission, or other fault on the part of a member

or beneficiary.

    Section 24. That § 3-12-116 be amended to read:

    3-12-116. If a designated beneficiary does not survive the member, any lump-sum payment that may be due shall be payable to the member's surviving spouse. If there is no surviving spouse, the payment shall be payable to all of the member's surviving children, irrespective of age, on a share-alike basis. If there is no surviving spouse and there are no surviving children, the payment shall be payable to the estate of the deceased member. If no claim for payment due upon the death of a deceased member is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the administrator executive director, payment of the claim is warranted by exceptional circumstances.

    Section 25. That § 3-12-118 be amended to read:

    3-12-118. The Board of Trustees board shall retain the services of an independent contractor, not involved in the investment process, to make a report to the board not less than every four years on the investment performance results of the assets of the retirement funds. The report shall include, but not be limited to, the investment for the total portfolio and each major investment category thereof; a comparison of the investment return on the common stocks in the portfolio to market indices in general use and to the results achieved by other institutional investors of pension funds; and an appraisal of the success of the management of the actively traded bond portfolio, including a comparison of the return on the bonds in the portfolio to the bond indices in general use and a quantitative estimate of the aggregate gains or losses arising out of the portfolio transactions, both current exchanges and those that have to be worked out over time by a series of trades.

    Section 26. That § 3-12-122 be amended to read:

    3-12-122. The board shall review the funding of the system and shall make a report to the Governor and the Retirement Laws Committee if any of the following conditions exist as of the latest annual actuarial valuation of the system:

            (1)    The contributions do not equal the actuarial requirement for funding;

            (2)    The funded ratio is less than eighty percent, or a ratio based on the market fair value of assets is less than eighty percent; or

            (3)    The market fair value of assets is less than ninety percent of the actuarial value of assets.

    The report shall include an analysis of the conditions and recommendations for the circumstances and timing for any future benefit changes, contribution changes, or any other corrective action, or any combination of actions, to improve the conditions. Based on this report and the recommendations of the board, the Legislature may adopt benefit changes, contribution changes, or any other corrective action, or any combination of actions, to improve the conditions set out in this section.

    If any of the conditions set out in this section exist for a period of three consecutive annual actuarial valuations, the board shall recommend benefit reductions changes, contribution changes, or any other corrective action, or any combination of actions, for approval by the Legislature and the Governor, effective as soon as possible, to improve the conditions set out in this section.

    Eligibility for benefits, the amount of any benefit, and the rate of member contributions established in this chapter are not the contractual rights of any member and are subject to change by the Legislature for purposes of corrective action to improve the conditions established in this section.

    Section 27. That § 3-12-127 be amended to read:

    3-12-127. Notwithstanding the repeal on July 1, 1974, of chapters 3-12; 3-13; 9-15; 13-45; certain provisions of chapter 16-8; chapter 16-11A; and certain provisions of chapter 33-13, all members of systems established thereunder shall be entitled to retire at the age, with the length of service and the benefits available to them under those provisions or the provisions of this chapter. For the purposes of this section, the administrator executive director shall retain as part of the permanent files of his office all volumes of the South Dakota Compiled Codified Laws, together with the 1973 pocket supplements thereto.

    Section 28. That § 3-12-130 be amended to read:

    3-12-130. A current contributing Class B member other than a justice, judge, or magistrate judge, may convert credited service as a county sheriff or deputy county sheriff prior to before January 1, 1980, or credited service as a county sheriff or deputy county sheriff while not certified from January 1, 1980, to June 30, 1988, inclusive; credited service as a police officer while not certified from July 1, 1983, to June 30, 1988, inclusive; credited service as a penitentiary correctional staff member prior to before July 1, 1978; credited service as a conservation officer prior to before July 1, 1983; credited service as a parole agent prior to before July 1, 1991; and credited service as an air rescue firefighter prior to before July 1, 1992, from credited service as a Class A member with benefits provided in accordance with § 3-12-91 to credited service as a Class B member other than a justice, judge, or magistrate judge, with benefits provided in accordance with § 3-12-92, by election to make, or have made on the member's behalf, contributions based on the higher of the member's current compensation, or the member's final average compensation calculated as if the member retired on the date of election, at an actuarially-determined percentage times each year of service for which the member wishes to receive such Class B credit. The provisions of this section also apply to a current contributing Class B member, other than a justice, judge, or magistrate judge, who previously has purchased equivalent public service pursuant to the provisions of § 3-12-84.

    Payment of a deposit with the system for the conversion of credited service in accordance with this section shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic level installments over a period of up to ten years, the value of which, if discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due to the system, but unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. If the periodic payments are not completed or paid when due, the administrator executive director may make a pro rata adjustment to the credited service, benefits payable under this chapter or schedule of payments to allow for the default.

    If the credited service of any member or group of members becomes Class B credited service on a prospective basis on or after July 1 June 30, 1993, the prior credited service as a Class A member may be converted to Class B credited service in accordance with this section. If a jailer becomes a Class B member other than a justice, judge, or magistrate judge pursuant to subdivision 3-12-47(25) or subdivision 3-12-47(55), the jailer is eligible to convert prior credited service as a jailer under this section.

    Section 29. That § 3-12-143 be amended to read:

    3-12-143. For the first thirty-six months of a disability benefit provided by § 3-12-99, the maximum amount that a member may receive in any calendar year from the disability benefit and earned income, as defined in § 32(c)(2) of the Internal Revenue Code, is one hundred percent of the member's final average compensation. Starting with the thirty-seventh month of such the disability benefit, the maximum amount that a member may receive in any calendar year from disability benefits provided by the federal Social Security Act equal to the primary insurance amount, the disability benefit provided by this chapter and earned income, as defined in § 32(c)(2) of the Internal

Revenue Code, is one hundred percent of the member's final average compensation. The maximum amount shall be indexed for each full fiscal year during which the member is eligible for such disability benefit by the improvement factor defined in subdivision 3-12-47(41). Any amount exceeding this maximum amount shall reduce each monthly disability benefit payable pursuant to § 3-12-99 in the following fiscal year on a pro rata basis.

    Any member eligible to receive a disability benefit shall report to the system in writing any earned income of the member. The report shall be filed with the system no later than May thirty-first before June first following the end of each calendar year in which a disability benefit is paid. A disabled member may file a signed copy of the member's individual income tax return in lieu of the report. No report or return need be filed for the calendar year in which the member dies or converts to a normal or early retirement benefit under this chapter. The disability benefit of any member failing to file a report or return as required in this section shall be suspended until the report or return is filed. The reduction may occur, however, only if a disability benefit is being paid by the system, but may not reduce the disability benefit below the minimum provided for in § 3-12-99.

    This section applies to any member receiving or entitled to receive a disability benefit pursuant to § 3-12-98.

    Section 30. That § 3-12-190 be amended to read:

    3-12-190. On an annual basis, at minimum, the board shall establish an interest rate assumption upon which the provisions of subsequent supplemental pension contracts shall be based. The board shall establish the assumption on the basis of the recommendations of the system's actuary and the state investment officer. The interest rate assumption may not be greater than the actuarial assumed rate of return for the fund, nor may the interest rate assumption be less than the effective rate of interest described in subdivision 3-12-47(27). Any other provision of law notwithstanding, the board may suspend issuance of new supplemental pension contracts at any time. Any suspension of new supplemental pension contracts shall be prospective in operation and may not affect supplemental pension contracts already in effect.

    The structure administration of the supplemental pension benefit administration requires that supplemental pension benefit purchase costs vary from one time period to the next. Consequently, participants who accept the option of a supplemental pension benefit have no expectation or fundamental right to any particular supplemental pension benefit purchase price.

    Section 31. That § 3-12-193 be amended to read:

    3-12-193. A supplemental pension participant shall receive an annual increase in the amount of the participant's supplemental pension benefit for each year commencing on the July first following the date on which the benefit was first payable, and equal to the improvement factor established in subdivision 3-12-47(41) applicable to the participant. If a supplemental pension contract goes into effect prior to before July 1, 2010, and if the first annual increase is for a period of less than twelve months, the initial increase shall be prorated as described in that subdivision. If a supplemental pension contract goes into effect on or after July 1 June 30, 2010, there shall be no initial prorated annual increase for a period of less than twelve months.

    Section 32. That § 3-12-194 be amended to read:

    3-12-194. If payment of monthly supplemental pension benefits ceases due to the death of the participant or the death of a supplemental pension spouse, and the total of monthly supplemental pension benefits paid is less than the amount of the participant's single premium, the difference between the total benefits paid and the single premium shall be disbursed in a lump sum as provided in this section. Amounts payable under this section shall be disbursed as follows:

            (1)    To the beneficiary or entity designated by the participant in the participant's supplemental

pension contract record, if any is designated;

            (2)    If no beneficiary or entity is designated, then to all surviving children of the participant, irrespective of age, on a share-alike basis; or

            (3)    If no beneficiary or entity is designated and there are no surviving children, then to the participant's estate.

    If no claim for payment due upon the death of a deceased participant is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the administrator executive director, payment of the claim is warranted by exceptional circumstances.

    The provisions of this section are not affected by the provisions of § 3-12-110 or 3-12-116.

    Section 33. That § 3-12-195 be amended to read:

    3-12-195. Supplemental pension contract purchases and supplemental pension benefit payments administered pursuant to the provisions of §§ 3-12-189 to 3-12-198, inclusive, are considered to be qualified plan distributed annuity contracts under Internal Revenue Service Treasury Regulation 1.402(c)-2, as amended through January 1, 2008.

    Section 34. That § 3-12-199 be amended to read:

    3-12-199. If, on or after April 1 March 31, 2010, a retired member reenters covered employment within the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement is deemed invalid. If the member received one or more retirement annuity benefit payments during the invalid retirement, the member shall either repay the payments as a lump sum immediately or the repayments shall be, repay the payments by contractual payments over a period of up to three years, which payments shall include interest at the assumed rate of return, or the repayments shall be repay the payments by an actuarial equivalent reduction in eventual monthly benefits based on the mortality table and scale used to determine an actuarial equivalent, as defined in subdivision 3-12-47(3).

    Section 35. That § 3-12-200 be amended to read:

    3-12-200. If, on or after April 1 March 31, 2010, a retired member reenters covered employment at some time after the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement benefits and continued membership shall be administered pursuant to this section.

    If the retired member's benefits have not been reduced pursuant to § 3-12-106, the member's monthly retirement annuity benefit shall be reduced by fifteen percent and the annual increase shall be eliminated throughout the period that the member reenters covered employment in accord with § 3-12-88. The reduction and elimination shall cease if the member again terminates covered employment. However, the foregoing provisions notwithstanding, the reduction and elimination do not apply if the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reenters covered employment as a Class A member.

    If the retired member's benefits have been reduced pursuant to § 3-12-106, the member's benefits shall be suspended during the period that the member reenters covered employment and the annual increase shall be eliminated during the period that the member reenters covered employment, both in accord with pursuant to § 3-12-111.1. The suspension and elimination shall cease if the member again terminates covered employment.

    Whether the member's retirement benefits are unreduced or have been reduced, contributions

required of the member pursuant to § 3-12-71 shall be deposited by the member's participating unit with the system for the benefit of the member to be transferred to an account within the deferred compensation program established pursuant to chapter 3-13. The contributions shall be governed by § 457 of the Internal Revenue Code. The foregoing notwithstanding However, the contributions required of the member's employer unit pursuant to § 3-12-71 shall be deposited into the member trust fund created by this chapter, but without any with no association with or credit to the member. The member may not earn any additional benefits associated with the period that the member reenters covered employment.

    Section 36. That § 3-12-201 be amended to read:

    3-12-201. A contributing member who becomes disabled and who has acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) since the member's most recent entry into active status and prior to before becoming disabled, or was disabled by accidental means while performing usual duties for an employer, is eligible for disability benefits if the disability is expected to be of long, continued, and indefinite duration of at least one year and the member is disabled on the date the member's contributory service ends. For purposes of this section, a transfer within a participating unit, or a change in employment from one participating unit to another participating unit if there is no break in contributory service, does not constitute a new entry into active status. The provisions of this section apply to any member whose application for disability benefits is received by the system after June 30, 2015.

    Section 37. That § 3-12-202 be amended to read:

    3-12-202. Any member seeking disability benefits pursuant to § 3-12-201 shall submit an application to the administrator executive director. Any information required for a complete application must be received within one year after the application for disability benefits was received. If the required information is not received by the system within one year after the application is received, the member may reapply.

    Any member, who fails to file an application for disability benefits with the administrator executive director within three years after the date on which the member's contributory service ends, forfeits all rights to disability benefits.

    Section 38. That § 3-12-205 be amended to read:

    3-12-205. Upon receipt of an application for disability benefits after June 30, 2015, along with statements from a health care provider and the member's employer, the administrator executive director shall determine whether the member is eligible for disability benefits. The administrator executive director may request the advice of the disability advisory committee with respect to any application. The recommendation of the disability advisory committee is not binding on the administrator executive director. The disability advisory committee or the administrator executive director may require an independent medical examination of the member to be conducted by a disinterested health care provider selected by the disability advisory committee or the administrator executive director to evaluate the member's condition. The disability advisory committee or the administrator executive director may require a functional capacity assessment of the member to be conducted by a licensed professional qualified to administer such assessments, and the an assessment. The assessment may be used to evaluate the member's qualification for benefits. Refusal to undergo an examination or assessment pursuant to this section is cause for denying the application.

    If the administrator executive director determines that the member is not disabled, a notice of the administrator's executive director's determination and the reasons for the determination shall be sent, by certified mail, to the member's last known address.

    Section 39. That § 3-12-206 be amended to read:

    3-12-206. If the administrator executive director determines that the member whose application was received pursuant to § 3-12-205, meets the qualifications to receive disability benefits, a notice of the administrator's executive director's determination shall be sent, by certified mail, to the member's last known address. A member whose application for disability benefits is approved shall receive the benefits beginning with the month following the date on which the member's contributory service terminates. If any member fails to terminate contributory service within one year after receiving notice that the member's application has been approved, the member's application approval expires.

    Section 40. That § 3-12-210 be amended to read:

    3-12-210. A member's disability benefits pursuant to § 3-12-207 terminate if the member is no longer disabled, as certified by a health care provider. Upon receipt of certification the administrator executive director shall determine whether the member meets the qualifications for disability benefits. In making this determination the administrator executive director shall follow the same procedure used in making the initial determination of disability provided in § 3-12-205. A member's disability benefits shall be suspended and subject to termination if the member refuses to undergo an examination or assessment requested by the disability advisory committee or the administrator executive director. If the administrator executive director finds that the member no longer meets the qualifications for disability benefits, the administrator executive director shall notify the member of this finding by certified mail and the payment of disability benefits shall terminate thirty days after receipt of the notice. Such a The finding by the administrator executive director is subject to appeal and review as a contested case.

    Section 41. That § 3-12-214 be amended to read:

    3-12-214. Upon the death of a member receiving disability benefits pursuant to § 3-12-207, who dies prior to normal retirement age, a family benefit shall be paid on behalf of any child of the member. The monthly amount of the family benefit is the amount of the monthly disability benefits the member received prior to before death. The monthly family benefit shall be equally apportioned among any children of the member and shall be paid on behalf of any child to the conservator or custodian of the child, as applicable. However, if the child is eighteen years of age the benefit is payable directly to the child. As any a child becomes ineligible pursuant to subdivision 3-12-47(14), the family benefit shall be reallocated among any remaining eligible children of the deceased member. The family benefit terminates if there are no eligible children of the deceased member pursuant to subdivision 3-12-47(14).

    Section 42. That § 3-12-47.3 be repealed.

    Section 43. That § 3-12-77.2 be repealed.

    Section 44. That § 3-12-120.1 be repealed.

    Section 45. That § 3-12-120.2 be repealed.

    Section 46. That § 3-12-120.3 be repealed.

    Section 47. That § 3-12-139 be repealed.

    Section 48. That § 3-12-140 be repealed.

    Section 49. That § 3-13-50 be amended to read:

    3-13-50. The administrator executive director shall administer the plan. The administrator

executive director may hire additional employees as may be required and shall set the remuneration of such the employees.

    Section 50. That § 3-13-51.1 be amended to read:

    3-13-51.1. Funds held by the fund may be invested by plan participants in such investments as are deemed appropriate A participant may invest in any investment selected by the state investment officer, including, but not limited to, annuity contracts. The state investment officer is authorized to may enter into contracts for investment alternatives and to offer internal investment alternatives, and the plan administrator is authorized to. The executive director or third-party administrator may transfer funds to, from, and among the respective investment alternatives as directed by the participant or as required if the investment alternative is no longer available. The state investment officer shall be held to the standard of conduct of a fiduciary and shall carry out all functions solely in the interests of the participants and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing such the duties as required by law.

    Section 51. That § 3-13-51.2 be amended to read:

    3-13-51.2. The administrator executive director shall execute any agreements as are necessary to carry out the provisions of this chapter, except such agreements as are executed by the state investment officer pursuant to § 3-13-51.1. Any contract for an investment alternative in effect on July 1, 2000, is hereby transferred by operation of law to the state investment officer as of July 1, 2000.

    Section 52. That § 3-13-52 be amended to read:

    3-13-52. Neither the plan nor any participating employer may have any liability to any participant for losses arising out of any decrease in the value of any investments held by the plan. The liability of the plan to any participant is limited to the value of the participant's account on the date the account is made available to the participant pursuant to the provisions of the plan. In no event may any member of the board, the administrator executive director or any member of the administrator's executive director's staff have any liability for any action taken with respect to the plan unless such action be taken in bad faith.

    Section 53. That § 3-13-53 be amended to read:

    3-13-53. The South Dakota deferred compensation fund is hereby established. All compensation deferred pursuant to this chapter shall be deposited in such the fund. Expenditures from the fund shall be paid on warrants drawn by the state auditor on vouchers approved by the administrator executive director. All administrative expenses shall be budgeted and expended pursuant to chapters 4-7, 4-8, 4-8A, and 4-8B. In accord with § 457(g) of the Internal Revenue Code, all money in the fund and all property and rights held by the fund, at all times until made available to a participant or the participant's beneficiary, shall be held in trust for the exclusive benefit of the participant. All compensation deferred pursuant to this chapter shall be transferred not later than fifteen business days after the end of the month in which the compensation otherwise would have been paid to the participant.

    Section 54. That § 3-13A-2 be amended to read:

    3-13A-2. The definitions contained in § 3-12-47 chapter 3-12 apply to this chapter unless otherwise so specified. In addition, the following terms used in this chapter mean:

            (1)    "Account," the record for each participant reflecting the amount of the participant's special pay transmitted to the fund, allocated investment gains and losses thereon, and administrative charges against those amounts;

            (2)    "Accounting date," the date on which an investment is valued and the total investment return is allocated to a participant's account;

            (3)    "Administrator," the administrator of the South Dakota Retirement System as provided in § 3-12-55;

            (4)    "Board," the South Dakota Retirement System Board of Trustees as established under § 3-12-48;

            (4)    "Executive director," the executive director of the South Dakota Retirement System as provided in § 3-12-55;

            (5)    Deleted by SL 2013, ch 20, § 19;

            (6)    "Fund," the South Dakota special pay fund established pursuant to § 3-13A-3;

            (7)(6)    "Normal retirement date," the date a participant may retire pursuant to the provisions of chapter 3-12 without reduced benefits;

            (8)(7)    "Participant," a terminated employee of a participating unit who has reached the calendar month prior to before the month of the employee's fifty-fifth birthday and who received six hundred dollars or more in special pay;

            (9)(8)    "Participating unit," the State of South Dakota, the South Dakota Board of Regents, or any other political subdivision of the state that participates in the program;

            (9A)(9)    "Plan year," a calendar year ending on December thirty-first;

            (10)    "Program," the South Dakota Special Pay Retirement Program created pursuant to §§ 3-13A-1 to 3-13A-25, inclusive;

            (11)    "Special pay," compensation other than regular salary or wages granted to a participant and transferred in a lump-sum to the fund at the termination of the participant's employment;

            (12)    "Third-party administrator," a person who, pursuant to contract, handles administration of the program on behalf of the board and the administrator executive director; and

            (13)    "Vendor," a person or organization selected by the state investment officer to provide investment or insurance products to the program.

    Section 55. That § 3-13A-3 be amended to read:

    3-13A-3. The South Dakota special pay fund is hereby established. All compensation transmitted to the fund pursuant to §§ 3-13A-1 to 3-13A-25, inclusive, shall be deposited in the fund. Expenditures from the fund shall be paid on warrants drawn by the state auditor and supported by vouchers approved by the administrator executive director. All administrative expenses shall be budgeted and expended pursuant to chapters 4-7, 4-8, 4-8A, and 4-8B. All money in the fund and all property and rights held by the fund shall be held in trust for the exclusive benefit of the participants at all times until made available to a participant or the participant's beneficiary. All benefits payable under this program shall be paid and provided for solely from the fund and a participating unit assumes no liability or responsibility therefor. Any trust under the program shall be established pursuant to a written agreement that constitutes a valid trust under the law of South Dakota.

    Section 56. That § 3-13A-9 be amended to read:



    3-13A-9. Moneys held by the fund may be invested by program participants in such investments as are deemed appropriate A plan participant may invest in any investment selected by the state investment officer, including annuity contracts. The state investment officer may enter into contracts for investment alternatives and to offer internal investment alternatives. The program administrator executive director or third-party administrator may transfer funds to, from, and among the respective investment alternatives as directed by the participant or as required if the investment alternative is no longer available.

    Section 57. That § 3-13A-11 be amended to read:

    3-13A-11. Each participant may elect to have the participant's funds invested in one or more of the investment alternatives selected by the state investment officer pursuant to § 3-13A-9. Subject to any limitations imposed by the administrator executive director, a vendor, or a third-party administrator, a participant may elect to transfer any portion of the account balance from one offered investment alternative to another at any time, if notice is given to the administrator executive director or the third-party administrator. Any costs associated with such a transfer shall be borne by the participant and shall be deducted from the participant's account. If, due to a payroll error, a participant's deferral is deposited in an investment alternative other than the one selected by the participant, the administrator executive director or third-party administrator may correct the error by transferring the participant's deferral to the proper investment alternative, subject to any limitations which may be imposed by the vendor. No retroactive adjustment may be made.

    Section 58. That § 3-13A-12 be amended to read:

    3-13A-12. If a contract between the state investment officer and a vendor is terminated and a participant fails to notify the administrator executive director or third-party administrator of the participant's new investment selection before the contract terminates, the administrator executive director or third-party administrator shall transfer that participant's account to the investment alternative designated by the state investment officer.

    Section 59. That § 3-13A-17 be amended to read:

    3-13A-17. The administrator executive director shall administer the program, shall have all powers necessary to accomplish that purpose, and shall determine all questions arising under or in connection with the program. The administrator executive director may hire additional employees as may be required and shall set the remuneration of such the employees. In addition, the administrator executive director, with the approval of the board, may contract with vendors for third-party administration of various duties under the program as the administrator executive director sees fit. The administrator executive director shall execute any agreements as are necessary to carry out the provisions of §§ 3-13A-1 to 3-13A-25, inclusive, except such any agreements as are executed by the state investment officer pursuant to § 3-13A-9.

    Section 60. That § 3-13A-22 be amended to read:

    3-13A-22. A participant is entitled to receive a distribution from the participant's account upon written application to the administrator executive director or third-party administrator. The participant may elect, on forms prescribed by the administrator executive director or third-party administrator, the time at which distributions under the program are to commence by designating the month and year during which the first distribution is to be made. The participant may elect to receive the participant's distribution in any of the following forms:

            (1)    A lump sum;

            (2)    Equal monthly installments over a fixed period; or

            (3)    Any other form offered by the administrator executive director or a third-party

administrator.

    The application and election shall be made prior to the time any amounts become payable. A participant or a beneficiary who has chosen a payment form may change that payment option, if no payment has yet been made, and subject to any administrative restrictions and charges established by the board.

    Section 61. That § 3-13A-25 be amended to read:

    3-13A-25. Neither the program nor any participating unit is liable to any participant for losses arising out of any decrease in the value of any investments held under the program. The liability of the program to any participant is limited to the value of the participant's account on the date the participant chooses to begin payment pursuant to the provisions of the program. In no event may any member of the board, the administrator executive director, or any member of the administrator's executive director's staff have any liability for any action taken with respect to the program unless such the action has been taken in bad faith.

    Section 62. That ARSD 62:01:01:01 be amended to read:

    62:01:01:01...Definition of terms. Terms defined in SDCL 3-12-47 SDCL chapters 3-12 and 3-13A have the same meaning when used in this article. In addition, terms used in this article mean:

    (1)  "Disability advisory committee," a committee composed of the secretary of the Department of Human Services or a designee, a lawyer, and a physician, the latter two members both appointed by the administrator executive director;

    (2)  "Represented group," a group entitled to elect one or more trustees pursuant to SDCL 3-12-48 and 3-12-49. The group to which a member belongs is determined from the records of the system;

    (3).."Employment," for purposes of SDCL 3-12-103.1, includes engagement of services by an employer who is not a participating unit and self-employment;

    (4).."Class B public safety member," an individual who is a class Class B member other than a justice, judge, or magistrate judge.

    Section 63. That ARSD 62:01:02:01 be amended to read:

    62:01:02:01...Determination of class A or class B Class A or Class B member. A member is a class A Class A member until proof is supplied to the administrator executive director that a member is a class B Class B member. The administrator executive director shall change the records when a change of duties requires a change of class.

    Section 64. That ARSD 62:01:02:11 be amended to read:

    62:01:02:11...Reentry into system for purposes of redeposit _ Limit on redeposit. For purposes of SDCL 3-12-80, a person reenters the system only if the person previously has terminated employment as defined in subdivision 3-12-47(70) or has ceased active membership by shifting to less than permanent full-time status; the person has withdrawn the person's accumulated contributions pursuant to SDCL 3-12-76 or SDCL 3-12-76.1; and it the reentry is the person's initial return to active status after a termination or shift, accompanied by a withdrawal. The redeposit may apply only to that withdrawal.

    Section 65. That ARSD 62:01:03:02 be amended to read:

    62:01:03:02...Determination of eligibility for retirement allowance benefit. Upon receipt of an application for a retirement allowance benefit, the administrator executive director shall determine

whether or not the applicant is eligible for the allowance benefit.

    Section 66. That ARSD 62:01:03:02.01 be amended to read:

    62:01:03:02.01...Certification when retired member becomes reemployed _ Penalty. If a retired member becomes reemployed by the same employer unit that the member retired from within one year after the member's retirement, the system may require both the member and the employer unit to certify that:

    (1)..The member's termination was a complete severance of employment as outlined in SDCL subdivision 3-12-47(70) and in SDCL 3-12-81.1;

    (2)..All standard hiring and employment procedures of the employer unit were followed in the reemployment process; and

    (3)..No prior agreement to reemploy the member, either overt or covert, existed between the member and the employer unit or any officer of the employer unit.

    An employer unit's chief executive officer or the officer's agent or the chair of the employer's governing commission or board shall provide the certification on behalf of the employer unit. The system shall provide forms for the member's and the employer unit's certifications. An intentionally false certification provides grounds for legal recourse pursuant to SDCL 22-29-9.1.

    Section 67. That ARSD 62:01:04:03 be amended to read:

    62:01:04:03...Disability determination _ Disability advisory committee _ Medical examination. Upon receipt of an application for a disability allowance benefit, with supporting medical evidence, the administrator executive director shall determine whether the applicant is eligible for a disability allowance benefit. The administrator executive director may request the advice of the disability advisory committee with respect to any application. The recommendation of the disability advisory committee is not binding on the administrator executive director. The disability advisory committee or the administrator executive director may require an independent medical examination of an applicant to be conducted by a licensed, disinterested physician selected by the disability advisory committee or the administrator executive director to evaluate the applicant's condition. The disability advisory committee or the administrator executive director may require a functional capacity assessment of the applicant to be conducted by a licensed professional qualified to administer such assessments, and the assessment may be used to evaluate the applicant's qualification for benefits. If the administrator executive director determines that the member is not disabled, a notice of the administrator's executive director's determination and the reasons for it shall be sent, by certified mail, to the applicant's last known address.

    Section 68. That ARSD 62:01:04:06 be amended to read:

    62:01:04:06...Medical examination of member receiving disability allowance benefit _ Refusal. The administrator executive director may require a member receiving a disability allowance benefit to undergo a medical examination at any time at the expense of the system. If the member refuses to submit to a medical examination within 30 days of receipt of written notice from the administrator executive director, the one-year period outlined in SDCL 3-12-103.1 begins to run and continues until the member withdraws the refusal. If the refusal continues for one year, the member forfeits all rights to the disability allowance benefit. If the member agrees to submit to a medical examination, upon completion of the examination by a physician selected by the administrator executive director, the physician shall provide to the administrator executive director a complete report on the condition of the member. If the administrator executive director finds that the member is no longer disabled, the administrator executive director shall so notify the member by certified mail and the payment of the disability allowance benefit shall terminate pursuant to SDCL 3-12-103.1. Such a A finding by the administrator executive director is subject to appeal and review as a contested case.

    Section 69. That ARSD 62:01:05:03 be amended to read:

    62:01:05:03...Procedure for nomination _ Filing of member petition. A justice, judge, or magistrate judge who is a candidate for nomination for trustee shall file one or more petitions containing, in all, at least five valid signatures of members of the candidate's represented member group. Each other member candidate for nomination for trustee shall file one or more petitions containing, in all, at least 20 valid signatures of members of the candidate's represented group. In addition to the required signatures, each petition shall contain the name, address, and last four digits of the social security number of the member candidate and a declaration of candidacy signed by the candidate. Each nominating petition must be in the possession of the office of the administrator no later than executive director by 5:00 p.m. on February 23.

    Section 70. That ARSD 62:01:05:03.01 be amended to read:

    62:01:05:03.01...Procedure for nomination _ Filing of employer petition. Each employer candidate for nomination for trustee shall file one or more petitions containing, in all, at least 20 valid signatures of members of the candidate's represented group. In addition to the required signatures, each petition shall contain the name, address, and represented employer group of the candidate and a declaration of candidacy signed by the candidate. Each nominating petition must be in the possession of the office of the administrator no later than executive director by 5:00 p.m. on February 23.

    Section 71. That ARSD 62:01:05:06 be amended to read:

    62:01:05:06...Preparation of ballots. The administrator executive director shall prepare separate ballots for each represented group entitled to vote in the election. Each ballot shall contain the appropriate designation of the represented group and the names, in alphabetical order, and the addresses of the candidates. No ballot shall be prepared if there are less than two candidates who have filed valid nominating petitions to represent a represented group.

    Section 72. That ARSD 62:01:05:07 be amended to read:

    62:01:05:07...Mailing of ballots. The administrator executive director shall mail no later than April 30 before May 1 the applicable ballot to each member entitled to vote in the election and to each employer entitled to vote in the election.

    Section 73. That ARSD 62:01:05:08 be amended to read:

    62:01:05:08...Validity of member ballot. To be valid, a member ballot must be in the possession of the office of the administrator no later than executive director by 5:00 p.m. on May 25. The ballot may be returned enclosed in an envelope.

    Section 74. That ARSD 62:01:05:09 be amended to read:

    62:01:05:09...Validity of employer ballot. To be valid, an employer ballot must be signed by the presiding officer of the governing board or commission of the employer and in the possession of the office of the administrator no later than executive director by 5:00 p.m. on May 25. The ballot may be returned enclosed in an envelope.

    Section 75. That ARSD 62:01:05:10 be amended to read:

    62:01:05:10...Issuance of new ballot. The administrator executive director may issue a second ballot to a voter only with approval of the internal auditing manager, who has sole control over all replacement ballots. The internal auditing manager may approve the issuance of a replacement ballot only upon receipt of an affidavit from the member or employer eligible to vote that certifies that an original ballot was not received or the original ballot was lost or misplaced and not previously

returned to the system.

    Section 76. That ARSD 62:01:05:13 be amended to read:

    62:01:05:13...Results of election. The board shall confirm its count or the canvassers' report and shall certify the results of the election at the first board meeting after ballot counting pursuant to §.62:01:05:12 is completed. However, the administrator executive director shall notify all the candidates and the members of the board of the tentative election results within three business days after the ballot counting is completed. If no election is required, the board shall declare the nominee elected.

    Section 77. That ARSD 62:01:05:14 be amended to read:

    62:01:05:14...Contest of election. An election is considered valid unless a notice of contest is filed with the administrator executive director within 15 days after the election results are announced. If such a notice of contest is filed, the board shall hold a hearing pursuant to SDCL chapter 1-26 to determine the validity of the election.

    Section 78. That ARSD 62:01:05:15 be amended to read:

    62:01:05:15...Storage of ballots. The administrator executive director shall keep all ballots cast in a safe place in the office of the administrator executive director before the ballots are counted. The administrator executive director shall hold the counted ballots in the office of the administrator executive director for at least 45 days after the election results are announced or until a contest is finally decided.

    Section 79. That ARSD 62:01:06:05 be amended to read:

    62:01:06:05...Finality of decision if the administrator executive director does not act _ Time limit. If the administrator executive director does not accept, reject, or modify the hearing examiner's proposed findings of fact, conclusions of law, and decision within 30 days after receiving them, the proposals become the final agency decision unless a party to the proceedings files a petition requesting formal administrative agency review of the proposals.

    Section 80. That ARSD 62:01:06:06 be amended to read:

    62:01:06:06...Written rationale for rejection or modification of a decision or findings _ Time limit. If the administrator executive director rejects or modifies the hearing examiner's proposed findings of fact, conclusions of law, or decision, the administrator executive director shall state the rationale for the rejection or modification in writing within 30 days and shall date the written document and provide it to the interested parties.

    Section 81. That ARSD 62:01:06:07 be amended to read:

    62:01:06:07...Declaratory rulings _ Time limit _ Hearing examiners. A petition for a declaratory ruling pursuant to SDCL 1-26-15 shall be heard in accordance with the procedures in SDCL chapter 1-26. The petition shall be filed within 30 days of the event giving rise to the petition. The administrator executive director may utilize the services of a hearing examiner to hear the arguments of interested parties and to issue a recommended ruling to the administrator executive director.

    Section 82. That ARSD 62:01:07:01 be amended to read:

    62:01:07:01...Secretary to board _ Filing. The administrator executive director shall act as secretary to the board. Any document required to be filed with the board shall be filed with the administrator executive director.

    Section 83. That ARSD 62:01:07:03 be amended to read:

    62:01:07:03...Waiver of privilege. A filing of a notice of appeal of an administrator's executive director's decision by a member for a hearing to be conducted by a hearing examiner shall be, for the purpose of the hearing and any subsequent appeal, a waiver by the member of any privilege against disclosure of information contained in the files of the system relevant to the subject matter of the hearing.

    Section 84. That ARSD 62:01:07:05 be amended to read:

    62:01:07:05...Procedure for filling a vacancy on the board. The administrator executive director shall be notified of a vacancy on the board by the vacating board member, by the member's participating unit's governing body, by the member's employer, or by any other board member. Upon the administrator's executive director's receipt of notice, the procedure to fill the vacancy shall be as follows:

    (1)..The administrator executive director shall notify all members of the board of the vacancy;

    (2)..If circumstances permit, the administrator executive director shall ask the incumbent to recommend a replacement to serve in the incumbent's stead;

    (3)..If the vacancy is for a trustee to serve on behalf of an employer represented group, the administrator executive director shall notify the governing body of each participating unit affected by the vacancy of the vacancy and request the governing body's input in seeking a qualified candidate. The administrator executive director shall solicit résumés of qualified individuals persons from governing bodies and interested individuals persons. The résumés shall be submitted to the administrator executive director. If a state-wide association exists that is made up of members of the employer represented group, the administrator executive director shall notify the association of the vacancy and request the association's input in seeking a qualified candidate. If the vacancy is for a trustee to serve on behalf of an employee represented group, the administrator executive director shall notify all authorized agents for the group affected by the vacancy of the vacancy and request that all employees affected by the vacancy be advised of the vacancy. Any interested member of the represented group may submit his or her résumé to the administrator executive director. If a state-wide association exists that is made up of members of the employee represented group, the administrator executive director shall notify the association of the vacancy and request the association's input in seeking a qualified candidate;

    (4)..The administrator executive director shall provide to each board member a copy of each résumé received;

    (5)..At its next regularly-scheduled meeting, the board, by secret ballot, shall select a replacement trustee from among those individuals persons who submitted résumés; and

    (6)..The replacement trustee shall fill the vacancy on the board immediately and shall serve until the regular term of the vacancy has been completed and the position is filled for a new term through a normal election pursuant to SDCL 3-12-49 and chapter 62:01:05.

    The provisions of this section notwithstanding, no vacant position may be filled unless the vacancy occurs at least eight months prior to when a normal election for a regular term will be completed to fill that trustee position pursuant to SDCL 3-12-49 and chapter 62:01:05.

    Section 85. That ARSD 62:01:07:07 be amended to read:

    62:01:07:07...Prospective nature of qualified domestic relations orders. The provisions of a qualified domestic relations order shall be prospective from the date of the order. Any division of benefits paid prior to the date of the order, service of the order upon the system, or qualification of

the order by the system, whichever is later, shall be the responsibility of the parties to the order. However, the administrator executive director may agree to adjust future payments to remedy an error in prior payments if the error in prior payments involved the system.

    Section 86. That ARSD 62:01:07:12 be amended to read:

    62:01:07:12...Member repayment of overpayments _ Options _ Interest _ Delayed repayment _ Failure by member to select an option _ System notice and member understanding. A member who must required to repay an overpayment of benefits pursuant to SDCL 3-12-114 may choose to make the repayment by an actuarial equivalent reduction in monthly benefits based on the mortality table and scale used to determine an actuarial equivalent as defined in SDCL subdivision 3-12-47(3). If the member does not have a spouse, the reduction shall continue for the member's lifetime. If the member has a spouse, the reduction shall reduce both the member's monthly benefits and the surviving spouse's monthly benefits and shall continue for both the member's and the surviving spouse's lifetimes.

    In the alternative, a member who must required to repay an overpayment of benefits pursuant to SDCL 3-12-114 may choose to make immediate repayment in a lump-sum from other funds or may choose to make repayment by monthly benefit reductions over a period not to exceed three years. Repayment shall include interest at the assumed rate of return as defined in SDCL subdivision 3-12-47(9A), unless the overpayment is due to a system error, in which case the administrator executive director may absolve any interest accrual.

    If a member's repayment is delayed for more than three months, interest on the overpayment amount shall accrue during the period of delay at the system's assumed rate of return, unless the overpayment is due to a system error, in which case the administrator executive director may absolve any interest accrual.

    If a member who must required to repay an overpayment does not choose a repayment option within two months after being given notice of the overpayment, the member is deemed to have chosen to make repayment by an actuarial equivalent reduction in monthly benefits as outlined in this section. If repayment is pursuant to an actuarial equivalent reduction by either the member's choice or the member's failure to choose a repayment option, system staff shall inform the member that the reduction is unlikely to result in repayment of the exact amount of the overpayment, plus interest if appropriate, and the member is presumed to so understand.

    Section 87. That ARSD 62:01:07:13 be amended to read:

    62:01:07:13...Administration of additional survivor protection contributions and coverage. A member enrolled in the additional survivor protection program pursuant to SDCL 3-12-104 prior to before July 1, 2010, may maintain that coverage so long as there is no break in the member's contributions or employment. Any of the following constitutes a break in a member's contributions or employment:

    (1)..Voluntary or involuntary discontinuance of contributions;

    (2)..Required discontinuance pursuant to SDCL 3-12-104;

    (3)..Termination of covered employment as defined in subdivision 3-12-47(70), even if the member returns to covered employment with the same employer or a different employer;

    (4)..Leave of absence, except for military leave of absence; or

    (5)..A break in service due to a series of two or more contracts for specified months of service.

    A military leave of absence is not a break in contributions or employment. A transfer within an

employer unit or from one employer to another without a termination is not a break in contributions or employment.

    Section 88. That subdivision (3) of ARSD 62:03:01:01 be amended to read:

    (3).."Administrator," the administrator "Executive director," the executive director of the South Dakota Retirement System as provided in SDCL 3-12-55;

    Section 89. That ARSD 62:03:02:03 be amended to read:

    62:03:02:03...Enrollment of participants. An eligible employee may become a participant by signing a participation agreement. Participation becomes effective on the first day of the month following the date on which the participation agreement is signed. If a new employee signs and files a participation agreement on the employee's date of hire, that agreement may become effective immediately. The plan may not accept any deferrals unless a signed participation agreement is on file in the office of the administrator executive director or the third-party administrator.

    Section 90. That ARSD 62:03:02:04 be amended to read:

    62:03:02:04...Participation agreement. The administrator executive director shall establish a form of participation agreement which includes the name, address, social security number, and birthdate of the participant and the participant's beneficiary; the name and address of the participant's employer; the participant's selection of investment alternatives; and any other information necessary for the administration of the plan.

    Section 91. That ARSD 62:03:05:06 be amended to read:

    62:03:05:06...Unforeseeable emergency. If a participant suffers an unforeseeable emergency, the participant may request an immediate distribution of all or part of the participant's deferrals. If the administrator executive director approves the request, the distribution shall be made to the extent necessary to satisfy the need, including payment of federal income tax withholding, if necessary. If the administrator executive director denies the request, the participant may appeal the denial pursuant to the appeal procedures outlined in SDCL 3-12-57.1 and in ARSD chapter 62:01:06 by giving notice of intention to appeal within 30 days after the date of the administrator's executive director's written notice of denial. The appeal shall be conducted in accordance with SDCL chapter 1-26. No distribution may be made to the extent that the unforeseeable emergency may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the participant's assets to the extent that the liquidation does not cause severe financial hardship, or by discontinuation of deferrals under the plan. The need to send a participant's child to college, divorce proceedings, or the desire to purchase a home are not considered unforeseeable emergencies. Any amount that is distributed on account of an unforeseeable emergency is not an eligible rollover distribution and the participant may not elect to have any portion of the distribution paid directly to an eligible retirement plan.

    The provisions of this section do not apply if a distribution may be made pursuant to §.62:03:05:07.

    Section 92. That ARSD 62:03:05:07 be amended to read:

    62:03:05:07...In-service distributions of small amounts _ Calculation _ Handling of certain involuntary distributions. Any other provision of this chapter notwithstanding, a participant may receive an in-service distribution from the plan, or the plan administrator executive director may render an involuntary distribution to the participant, under the following conditions:

    (1)..The participant is inactive in the plan and has made no deferrals for at least two years prior to the distribution;



    (2)..The total distribution _ whether elective or involuntary or both _ does not exceed $5,000; and

    (3)..The participant previously has not received either an elective or an involuntary distribution under the plan.

    If implementing subdivision (2) of this section, the value of a participant's nonforfeitable account balance shall be determined without regard to that portion of the account balance that is attributable to rollover contributions (, and earning allocable thereto), within the meaning of §§.402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e) of the code Internal Revenue Code.

    If an involuntary distribution is in excess of $1,000 and if the participant does not elect to have the distribution transferred to an eligible retirement plan pursuant to §.401(a)(31) of the code Internal Revenue Code or does not elect to receive the distribution directly, the distribution shall be transferred to an individual retirement plan of a designated trustee or issuer. The plan administrator executive director shall notify the participant in writing that the distribution may be transferred to another individual retirement plan.

     Signed February 18, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\031.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\032.wpd
CHAPTER 32

(SB 13)

South Dakota Retirement System, new system created.


        ENTITLED, An Act to establish a new retirement benefit structure for certain public employees who are members of the South Dakota Retirement System.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, accumulated contributions, means the sum of:

            (1)    All contributions made by the member;

            (2)    Eighty-five percent of the contributions made by the member's employer if the member has three years or more of contributory service or noncontributory service, or fifty percent of the contributions made by the employer if the member has less than three years of contributory service or noncontributory service;

            (3)    Member credited service purchases pursuant to §§ 3-12-83, 3-12-84, and 3-12-84.2; and

            (4)    The effective rate of interest on the sum of subdivisions (1), (2), and (3).

    Section 2. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, credited service, means the sum of the following:

            (1)    Years of service, or fractions thereof, for which member contributions were made to the system;

            (2)    Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;

            (3)    Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions; and

            (4)    Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12-86.

    Section 3. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twenty consecutive calendar quarters during the member's last forty calendar quarters of membership in the system. If the compensation received in the last calendar quarter considered exceeds one hundred five percent of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters exceeds one hundred five percent of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess shall be excluded in the computation of final average compensation.

    For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of twenty consecutive calendar quarters.

    For any member who has less than twenty but more than four calendar quarters of membership in the system, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.

    Section 4. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, the term, improvement factor, means the annual increase in the amount of the benefit provided on July first, compounded annually. However, no annual increase may be provided unless the member has received benefit payments for at least the consecutive, twelve-month period before July first. The annual increase shall be established by the board for each fiscal year, based on the fair value funded ratio of the system and the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the previous year in which the consumer price index was the highest), as follows:

            (1)    If the system's fair value funded ratio is less than eighty percent, the improvement factor shall be equal to the increase in the consumer price index, but no less than one percent and no greater than two and one-tenth percent;

            (2)    If the system's fair value funded ratio is eighty percent or greater but less than ninety percent, the improvement factor shall be the increase in the consumer price index, but no less than one percent and no greater than two and four-tenths percent;

            (3)    If the system's fair value funded ratio is ninety percent or greater but less than one hundred percent, the improvement factor shall be the increase in the consumer price index, but no less than one percent and no greater than two and eight-tenths percent; or

            (4)    If the system's fair value funded ratio is one hundred percent or greater, the improvement factor shall be the increase in the consumer price index, but no less than one percent and no greater than three and one-tenth percent.

    Section 5. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any generational member, normal retirement age is sixty-seven for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-seven for other Class B credited service. The Legislature may increase the normal retirement age for some or all then-contributing members if life expectancy at retirement continues to increase, as substantiated by a periodic actuarial experience analysis that takes into account census data of all active members, vested terminated members, and retired members as well as beneficiaries of the system.

    Section 6. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class A credited service, equal to one and eight-tenths percent of final average compensation for each year of Class A credited service.

    Section 7. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class B credited service other than as a justice, judge, or magistrate judge, equal to two percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge.

    Section 8. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, equal to three and three hundred thirty-three thousands percent of final average compensation for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge and two percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge in excess of fifteen years.

    Section 9. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Any generational member applying for a retirement benefit shall elect one of the following monthly benefit options:

            (1)    A single life benefit that provides a monthly benefit to the member for as long as the member lives and ceases upon the death of the member;

            (2)    A sixty percent joint and survivor benefit that provides a reduced lifetime monthly benefit to the member, and upon the member's death sixty percent of the reduced benefit continues to the surviving spouse until the death of the surviving spouse; or

            (3)    A one hundred percent joint and survivor benefit that provides a reduced lifetime monthly benefit to the member, and upon the member's death one hundred percent of the reduced benefit continues to the surviving spouse until the death of the surviving spouse.

    The benefits payable to the member and the surviving spouse pursuant to a joint and survivor benefit are based on the ages of the member and the spouse and are the actuarial equivalent of a single life benefit. The monthly benefit of a member electing the joint and survivor benefit is reduced in order to provide for a continuing benefit for the surviving spouse after the member's death. The last payment of the member's benefit is for the month in which the member's death occurs, and any surviving spouse benefit is effective from the first day of the month following the member's death. The benefits payable pursuant to this section shall be paid in accordance with § 401(a)(9) of the Internal Revenue Code.

    Section 10. That chapter 3-12 be amended by adding a NEW SECTION to read:



    If more than one monthly retirement benefit payment has been made to the generational member, the benefit election made by a member is irrevocable and surviving spouse benefits, if elected, may only be paid to the person who is the spouse both at the time of the election and at the time of the member's death and only if the spouse survives the member. The benefit election may not be rescinded in the event of a subsequent divorce or the subsequent death of the spouse.

    Section 11. That chapter 3-12 be amended by adding a NEW SECTION to read:

    No retirement benefit may be paid unless the system has received a completed application for a retirement benefit, including the benefit option elected. The application shall be signed by both the generational member and the member's spouse, if applicable, and each signature shall be witnessed by a representative of the system or notarized.

    Section 12. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Unless a generational member's required beginning date for retirement occurs first, the retirement benefit of a generational member is effective in accordance with whichever of the following is last:

            (1)    The first day of the month following the date on which the member's contributory service terminated;

            (2)    The first day of the month following an intervening complete calendar month after the date on which the member's written application for retirement benefits is received by the system; or

            (3)    The first day of the month specified in the member's application for retirement.

    The last payment of the member's benefit is for the month in which the member's death occurs.

    Section 13. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Any generational member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no member may receive any retroactive benefits for any period of time before the first day of the month following the date the member's contributory service terminated.

    Section 14. That chapter 3-12 be amended by adding a NEW SECTION to read:

    The disability benefit approved pursuant to § 3-12-206 is the greater of the following calculations:

            (1)    Twenty-five percent of the generational member's final average compensation at the date of disability; or

            (2)    The generational member's unreduced accrued retirement benefit at the date of disability.

    The disability benefit shall be paid in monthly installments. The disability benefit of a generational member shall terminate upon attaining normal retirement age, or if the member commences a disability benefit within five years of normal retirement age, after receiving the disability benefit for five years, and thereafter the member shall receive a retirement benefit. In order to start the retirement benefit, the member shall submit a completed retirement application that includes the benefit option elected by the member. The single life benefit is equal to the amount the member received as a disability benefit.

    Section 15. That chapter 3-12 be amended by adding a NEW SECTION to read:


    Any vested generational member may elect to start the retirement benefit in the ten years preceding the member's normal retirement age. However, no retirement benefit may be paid unless the member submits a completed retirement application to the system that includes the benefit option elected by the member. The normal retirement benefit shall be reduced by five percent for each full year and prorated for each additional full month between the date the early retirement benefit commences and the date the member attains normal retirement age.

    Section 16. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon the death of a generational member retiree who elected either a sixty percent or one hundred percent joint and survivor benefit, the surviving spouse is eligible to receive a surviving spouse benefit. The amount of the surviving spouse benefit is based on the election made upon the retirement of the member and is payable on a monthly basis to the surviving spouse for the life of the spouse.

    Section 17. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Upon the death of a generational member who was vested or died while performing usual duties for the employer and who has reached normal retirement age but has not yet begun a retirement benefit, a surviving spouse is eligible to receive a surviving spouse benefit. The surviving spouse benefit is equal to sixty percent of the actuarially reduced amount the member would have received if the member retired on the date of death and elected the sixty percent joint and survivor benefit. The annual benefit shall be divided into monthly payments and is payable for the life of the surviving spouse. The payments are effective the first day of the month following the member's death.

    Section 18. That chapter 3-12 be amended by adding a NEW SECTION to read:

    If no family benefit is being paid pursuant to § 3-12-95.4, a surviving spouse of a contributing generational member who had acquired at least three years of contributory service or noncontributory service or died while performing usual duties for the employer or died while receiving a disability benefit, shall, upon attaining the age sixty-seven, receive a surviving spouse benefit as follows:

            (1)    If a family benefit had been paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the improvement factor from the date the last family benefit was paid; or

            (2)    If a family benefit had not been paid, sixty percent of the amount calculated pursuant to subsection (a) or (b), whichever is greater, increased by the improvement factor from the date of the member's death:

            (a)    Twenty-five percent of the member's final average compensation at the time of the member's death; or

            (b)    The member's unreduced accrued retirement benefit at the time of the member's death.

    The surviving spouse benefit shall be paid in monthly installments for the life of the surviving spouse.

    Section 19. That chapter 3-12 be amended by adding a NEW SECTION to read:

    A generational member's spouse who is eligible to receive a surviving spouse benefit at age sixty-seven may elect to start the benefit in the ten years preceding the spouse attaining the age of sixty-seven. The early surviving spouse benefit, payable for the life of the surviving spouse, is the surviving spouse benefit reduced by five percent for each full year and prorated for each additional full month between the date the early surviving spouse benefit commences and the date the surviving

spouse attains the age of sixty-seven.

    Section 20. That chapter 3-12 be amended by adding a NEW SECTION to read:

    If a retired generational member reenters covered employment at some time after the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement benefits and continued membership shall be administered pursuant to this section.

    If the retired member's benefits have not been reduced, the member's monthly retirement benefit shall be reduced by fifteen percent and the annual increase shall be eliminated throughout the period that the member reenters covered employment. The reduction and elimination shall cease if the member again terminates covered employment. However, the reduction and elimination do not apply if the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reenters covered employment as a Class A member.

    If the retired member's benefits have been reduced, the member's benefits shall be suspended during the period that the member reenters covered employment and the annual increase shall be eliminated during the period that the member reenters covered employment. The suspension and elimination shall cease if the member again terminates covered employment.

    Whether the member's retirement benefits are unreduced or reduced, contributions required of the member pursuant to § 3-12-71 shall be deposited by the member's participating unit with the system for the benefit of the member to be transferred to an account within the deferred compensation plan established pursuant to chapter 3-13. The contributions shall be governed by § 457 of the Internal Revenue Code. However, the contributions required of the member's employer unit pursuant to § 3-12-71 shall be deposited into the fund created by this chapter, but with no association or credit to the member. The member may not earn any additional benefits associated with the period that the member reenters covered employment.

    Section 21. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Each generational member shall have a variable retirement account, which consists of variable retirement contributions and the credited investment return. The investment return shall be credited annually as of June thirtieth for all generational members with a variable retirement account on that date. The credited investment return is the South Dakota Investment Council's reported money-weighted investment return of the system, net of fees, for the completed fiscal year. For any account distributed during the fiscal year, the estimated investment return shall be credited to the end of the month before the date on which the retirement benefit is paid or the disability benefit is paid or the death occurred, as applicable. Any variable retirement contributions made during the fiscal year shall receive one-half year's credited investment return.

    Section 22. That chapter 3-12 be amended by adding a NEW SECTION to read:

    Each year the board shall establish the variable retirement contribution for the following fiscal year based on the results of the most current annual actuarial valuation. The variable retirement contribution for any year may be adjusted from zero to one and one-half percent of each contributing generational member's compensation and shall be allocated to each generational member's variable retirement account. The variable retirement contribution for the fiscal year beginning July 1, 2017, shall be one and one-half percent of each contributing member's compensation.

    Section 23. That chapter 3-12 be amended by adding a NEW SECTION to read:

    The variable retirement account is payable at the retirement, disability, or death of the generational member. The variable retirement account is payable to the generational member when the member commences a retirement benefit or a disability benefit or to the generational member's eligible child, eligible spouse, or beneficiary upon the death of the member. The variable retirement

account is not payable to any member who withdraws his or her accumulated contributions from the system. For the purpose of paying a distribution, the variable retirement account is the amount in the member's variable retirement account or the total of the variable retirement contributions made on behalf of the member, whichever is greater.

    The variable retirement account may be paid in a lump sum, rolled over to the South Dakota deferred compensation plan, rolled over to another eligible plan, or used to purchase a supplemental pension benefit. However, the purchase of a supplemental pension benefit is only available upon the member's retirement.

    Section 24. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, accumulated contributions, means the sum of:

            (1)    All contributions made by the member, including member contributions made by an employer after June 30, 1984, pursuant to § 3-12-71;

            (2)    For a member whose contributory service concluded after June 30, 2010, eighty-five percent of the employer contributions or noncontributory service if the member had three years or more of contributory service and fifty percent of the employer contributions if the member had less than three years of service; or for a member whose contributory service concluded before July 1, 2010, one hundred percent of the employer contributions or noncontributory service if the member had three years or more of contributory service and seventy-five percent of the employer contributions if the member had less than three years of service;

            (3)    Member redeposits pursuant to § 3-12-80 and member credited service purchases pursuant to §§ 3-12-83, 3-12-84, and 3-12-84.2; and

            (4)    The effective rate of interest earned on the sum of subdivisions (1), (2), and (3).

    Section 25. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, credited service, means:

            (1)    Years of service, or fractions thereof, for which member contributions were made to the system;

            (2)    Years of noncontributory service, or fractions thereof, credited before July 1, 1974, previously credited under the provisions of the retirement systems consolidated pursuant to § 3-12-46;

            (3)    Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;

            (4)    Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions;

            (5)    Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12-86;

            (6)    Years of service, or fractions thereof, by faculty and administrators employed by the board of regents before April 1, 1964, credited pursuant to §§ 3-12-69.4 and 3-12-69.5;

            (7)    Years of noncontributory service, or fractions thereof, earned before July 1, 1967, but not

credited under the South Dakota public employee retirement system as it was consolidated pursuant to § 3-12-46 because the person earned the service prior to attaining the age of thirty. The service shall be credited only to those persons who are contributing members on July 1, 1987. No service may be credited pursuant to this subdivision to any member who has withdrawn the member's accumulated contributions after July 1, 1967; and

            (8)    Years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under that system.

    Section 26. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twelve consecutive calendar quarters during the member's last forty calendar quarters of membership in the system including time during which the member was not a member but for which the member has received credit under the system. If the compensation received in the last calendar quarter considered exceeds a set percentage of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters exceeds a set percentage of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess shall be excluded in the computation of final average compensation. Those respective set percentages are as follows:

            (1)    Before July 1, 2004, one hundred twenty-five percent and one hundred fifteen percent;

            (2)    Between July 1, 2004, and June 30, 2005, one hundred fifteen and one hundred ten percent; and

            (3)    After June 30, 2005, one hundred five percent and one hundred five percent.

    For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of twelve consecutive calendar quarters. For any member who has less than twelve but more than four calendar quarters of membership in the system, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.

    Section 27. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, improvement factor, means the annual increase in the amount of the benefit provided on July first, compounded annually. However, no annual increase may be provided unless the member has received benefit payments for at least the consecutive, twelve-month period before July first. The annual increase shall be established by the board for each fiscal year, based on the system's fair value funded ratio and the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the past year in which the consumer price index was the highest), as follows:

            (1)    If the system's fair value funded ratio is less than eighty percent, the improvement factor shall be two and one-tenth percent;

            (2)    If the system's fair value funded ratio is eighty percent or greater but less than ninety percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent and no greater than two and four-tenths percent;

            (3)    If the system's fair value funded ratio is ninety percent or greater but less than one hundred percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent and no greater than two and eight-tenths percent; or

            (4)    If the system's fair value funded ratio is one hundred percent or greater, the improvement factor shall be three and one-tenth percent.

    Section 28. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, normal retirement age is age sixty-five for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-five for other Class B credited service.

    Section 29. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For any foundation member, the term, reduction age, means the age at which the sum of the foundation member's age and credited service equals a number as follows:

            (1)    For Class A credited service, an age not less than fifty-five and at which the sum of the foundation member's age and credited service equals eighty-five;

            (2)    For Class B credited service as a justice, judge, or magistrate judge, an age not less than fifty-five and at which the sum of the foundation member's age and credited service equals eighty; and

            (3)    For Class B credited service other than as a justice, judge, or magistrate judge, an age not less than forty-five and at which the sum of the foundation member's age and credited service equals seventy-five.

    Section 30. That § 3-12-47.1 be amended to read:

    3-12-47.1. Any increase in a retired member's benefit as a result of the provisions of the 1997 amendment to subdivision 3-12-47(24) credited service related to years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under the system shall be prospective only from July 1, 1997.

    Section 31. That § 3-12-47.2 be amended to read:

    3-12-47.2. Any member who, pursuant to the provisions of § 3-12-83, has purchased a portion or all of the member's noncontributory service described in subsection (h) of subdivision § 3-12-47(24) earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under the system is entitled to a refund of such purchase cost.

    Section 32. That § 3-12-62.8 be amended to read:

    3-12-62.8. For purposes of determining the retirement benefits of foundation member conservation officers, for credited service earned prior to before July 1, 1983, benefits shall be calculated pursuant to § 3-12-91 and for credited service earned after June 30, 1983, benefits shall be calculated pursuant to § 3-12-92. For purposes of benefits credited service earned prior to before July 1, 1983, a conservation officers shall have officer has a normal retirement age of sixty-five. For purposes of benefits credited service earned after June 30, 1983, a foundation member conservation officers shall have officer has a normal retirement age of fifty-five.


    Section 33. That § 3-12-77 be amended to read:

    3-12-77. A member of the system who is not vested may leave the member's accumulated contributions in the system upon termination of employment for a period not to exceed ten years from the date of termination. However, no additional contributions may be made to the system by the member or a participating unit following the date of termination and no benefits in the retirement system may accrue to a member of the system following the date of termination, except as provided in § 3-12-72.4. If the member withdraws the member's accumulated contributions, membership in the system terminates. At the end of the ten-year period, no further interest may be credited with respect to contributions and no further investment return may be credited with respect to any variable retirement account. If the member fails to withdraw the member's accumulated contributions within eleven years following the member's termination, the member shall forfeit all rights to the member's accumulated contributions, variable retirement account, and to any credited service in connection therewith, if the system has made reasonable efforts to notify the member of the member's withdrawal rights and the effect of this section.

    Section 34. That § 3-12-80 be amended to read:

    3-12-80. If a person whose accumulated contributions have been refunded since July 1, 1974, reenters the system as a foundation member, the person foundation member may elect to redeposit the accumulated contributions, with compound interest at the assumed rate of return between the date of withdrawal and the date of redeposit. The redeposit shall be made within two years after reentry into the system and the credited service forfeited when contributions were refunded shall then be reinstated; any employer contributions forfeited at the time of refund shall be reinstated; and the foundation member, except as provided in § 3-12-131, shall be regarded as having never refunded.

    Any withdrawals of additional contributions made pursuant to § 3-12-104 shall be considered accumulated contributions for purposes of redeposit to reinstate the credited service forfeited when contributions were refunded.

    No generational member may redeposit accumulated contributions.

    Section 35. That § 3-12-90 be amended to read:

    3-12-90. Benefits paid upon early or normal retirement shall commence on the earlier of the member's required beginning date or on the first day of the month following the later of, the date on which the member's contributory service terminated, thirty days after the written application for retirement benefits is received in the office of the administrator, or the date specified in the member's application for retirement. In any event the benefit shall be paid from the first day of the month. The last payment shall be made from the first day of the month in which the member's death occurs.

    An individual who fails to make a timely application for retirement benefits may receive up to a maximum of three months of benefits retroactive to the date on which the member's contributory service terminated. Unless a foundation member's required beginning date for retirement occurs first, the early or normal retirement benefit of a foundation member is effective in accordance with whichever of the following is last:

            (1)    The first day of the month following the date on which the member's contributory service terminated;

            (2)    The first day of the month following an intervening complete calendar month after the date on which the member's written application for retirement benefits is received by the system; or

            (3)    The first day of the month specified in the member's application for retirement.

    The last payment of the member's benefit is for the month in which the member's death occurs.

    Any foundation member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no foundation member may receive any retroactive benefits for any period of time before the first day of the month following the date on which the member's contributory service terminated.

    Section 36. That § 3-12-91 be amended to read:

    3-12-91. Upon retirement, a foundation member shall receive a normal retirement allowance benefit, commencing at normal retirement age or thereafter as provided in § 3-12-90, for Class A credited service, equal to the larger of 1.7% one and seven-tenths percent of final average compensation for each year of Class A credited service before July 1, 2008, plus 1.55% one and fifty-five hundredths percent of final average compensation for each year of Class A credited service after July 1, 2008, or 2.4% two and four-tenths percent of final average compensation for each year of Class A credited service before July 1, 2008, plus 2.25% two and twenty-five hundredths percent of final average compensation for each year of Class A credited service after July 1, 2008, less other public benefits. For purposes of this section, federal military retirement or federal national guard retirement benefits are not other public benefits. For the purposes of this section, any Class A member who did not participate in federal social security during the period of credited service shall be presumed to be entitled to the maximum primary social security benefit permitted at the time of retirement. Class A credited service includes all credited service under this or any of the retirement systems consolidated pursuant to § 3-12-46.

    Section 37. That § 3-12-91.1 be amended to read:

    3-12-91.1. Each participating unit shall make an additional contribution in the amount of six and two-tenths percent of any foundation member's compensation in each calendar year that exceeds the maximum taxable amount for social security for the calendar year. The additional contributions shall be made only for Class A foundation members and may not be treated as employer contributions.

    Section 38. That § 3-12-92 be amended to read:

    3-12-92. Upon retirement, a foundation member shall receive a normal retirement allowance benefit, commencing at normal retirement age or thereafter as provided in § 3-12-90, for Class B credited service other than as a justice, judge, or magistrate judge, equal to 2.4% two and four-tenths percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge before July 1, 2008, plus 2. 0% two percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge after July 1, 2008.

    Section 39. That § 3-12-92.4 be amended to read:

    3-12-92.4. Upon retirement, a foundation member shall receive a normal retirement allowance benefit, commencing at normal retirement age or thereafter as provided in § 3-12-90, for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge equal to 3.733% three and seven hundred thirty-three thousandths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge before July 1, 2008, plus 3. 333% three and three hundred thirty-three thousandths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge after July 1, 2008. A foundation member shall also receive for Class B credited service as a justice, judge, or magistrate judge in excess of fifteen years, 2.4% two and four-tenths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge before July 1, 2008, plus 2.0% two percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge after July 1, 2008.



    Section 40. That § 3-12-94 be amended to read:

    3-12-94. Upon the death of a foundation retiree or any foundation member who has reached normal retirement age, the surviving spouse is eligible to receive a normal retirement allowance benefit, payable in monthly installments, equal to sixty percent of the retirement allowance benefit that the foundation member was receiving or was eligible to receive at the time of death.

    Section 41. That § 3-12-95.4 be amended to read:

    3-12-95.4. On the death of a contributing member after June 30, 2015, who has acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24), or who died while performing usual duties for an employer, and prior to the earlier of the member attaining normal retirement age or the member's retirement, a family benefit shall be paid on behalf of any child of such member. The total family benefit is the greater of:

            (1)    Twenty-five percent of the member's final average compensation at the time of death; or

            (2)    The member's unreduced accrued retirement benefit at the time of death.

    The family benefit, which shall be paid in monthly installments, shall be equally apportioned among any children of the member and shall be paid on behalf of any child to the conservator or custodian of the child, as applicable. However, if the child is eighteen years of age the benefit is payable directly to the child. As any a child becomes ineligible pursuant to subdivision 3-12-47(14), the family benefit shall be reallocated among any remaining eligible children of the deceased member. The family benefit terminates if there are no eligible children of the deceased member pursuant to subdivision 3-12-47(14).

    Section 42. That § 3-12-95.5 be amended to read:

    3-12-95.5. If no family benefit is being paid pursuant to § 3-12-95.4, a surviving spouse of a contributing foundation member who had acquired at least three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) or died while performing usual duties for the employer and who died after June 30, 2015, shall, upon attaining the age of sixty-five, receive a surviving spouse benefit calculated as follows, whichever is applicable:

            (1)    If a family benefit had been paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the improvement factor from the date the last family benefit was paid; or

            (2)    If a family benefit had not been paid, sixty percent of the amount calculated pursuant to subsection (a) or (b), whichever is greater, increased by the improvement factor from the date of the member's death:

            (a)    Twenty-five percent of the member's final average compensation at the time of the member's death; or

            (b)    The member's unreduced accrued retirement benefit at the time of the member's death.

    The surviving spouse benefit shall be paid in monthly installments for the life of the surviving spouse.

    Section 43. That § 3-12-95.6 be amended to read:


    3-12-95.6. A foundation member's spouse who would be eligible to receive a surviving spouse benefit at age sixty-five may elect to start the benefit prior to age sixty-five but no earlier than the date on which the surviving spouse attains the age of fifty-five. The early surviving spouse benefit, payable for the life of the surviving spouse, is the surviving spouse benefit reduced by five percent for each full year and prorated for each additional full month between the date the early surviving spouse benefit commences and the date the surviving spouse attains the age of sixty-five.

    Section 44. That § 3-12-106 be amended to read:

    3-12-106. Any vested foundation member can retire in the ten years preceding his the member's normal retirement age and the retirement allowance benefit shall be reduced by the lesser of the following:

            (1)    One-fourth of one percent for each full month which remains between the date of commencement of payments and the date the member will reach his the member's normal retirement age; or

            (2)    One-fourth of one percent for each full month which remains between the date of commencement of payments and the date the member will reach his the member's reduction age.

    Section 45. That § 3-12-107 be amended to read:

    3-12-107. Any foundation member who retires before being eligible for social security retirement benefits may elect to receive initial retirement benefit payments from the system in an amount greater than the standard benefit payments computed on the basis of the member's age and earnings at retirement. The greater amount, in conjunction with a later reduced amount, shall be the actuarial equivalent of the normal retirement allowance benefit computed on the basis of age at retirement. The greater amount shall be paid until the foundation member reaches the age of sixty-two, at which time the payment from the system shall be the reduced amount so that, as far as possible, the foundation member's combined monthly retirement income from the system and social security shall approximately equal the greater amount paid prior to age sixty-two.

    Section 46. That § 3-12-110 be amended to read:

    3-12-110. After all benefits currently or potentially payable under any provision of this chapter have terminated, if the aggregate benefits paid to a member and the member's surviving spouse and minor children, including any distribution of the member's variable retirement account, are less than the member's accumulated contributions, the amount by which the accumulated contributions exceed total payments made to date shall be paid in a lump sum as provided in this section.

    Amounts payable under this section shall be paid as follows:

            (1)    To the beneficiary or entity designated by the member, if any is designated; or

            (2)    If no beneficiary or entity is designated, then to the member's surviving spouse; or

            (3)    If no beneficiary or entity is designated and there is no surviving spouse, then to all surviving children, irrespective of age, on a share alike share-alike basis; or

            (4)    If no beneficiary or entity is designated, there is no surviving spouse, and there are no surviving children, then to the member's estate.

    If no claim for payment due upon the death of a deceased member is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the administrator, payment of

the claim is warranted by exceptional circumstances.

    Section 47. That § 3-12-191 be amended to read:

    3-12-191. A retiree receiving a benefit from the system may become a supplemental pension participant by direct rollover of funds held by the member in a variable retirement account or in either or both of the plans created in chapters 3-13 and 3-13A into the fund. Any rollover shall be in compliance with the provisions of § 401(a)(31) of the Internal Revenue Code and shall be recorded in the participant's supplemental pension contract record. All of a participant's funds rolled into the fund shall be expended in full as the single premium for a supplemental pension contract. No single premium may be less than ten thousand dollars. No participant may have more than one supplemental pension contract funded by either or both of the plans created in chapters 3-13 and 3-13A and no more than one supplemental pension contract funded by the participant's variable retirement account. A supplemental pension contract goes into effect when a participant signs the supplemental pension contract. The initial monthly supplemental pension benefit is payable the first day of the first month after the contract goes into effect. Payment of any prior and current supplemental pension benefits shall be made within two months after the contract is in effect.

    Section 48. That § 3-12-192 be amended to read:

    3-12-192. A supplemental pension participant shall receive one of two three types of supplemental pension benefits:

            (1)    A supplemental pension benefit payable monthly for the lifetime of the participant; or

            (2)    A supplemental pension benefit payable monthly for the lifetime of the participant and, upon the death of the participant, a supplemental pension benefit payable monthly to the participant's supplemental pension spouse equal to sixty percent of the monthly benefit amount that the participant was receiving at the time of death; or

            (3)    A supplemental pension benefit payable monthly for the lifetime of the participant and, upon the death of the participant, a supplemental pension benefit payable monthly to the participant's supplemental pension spouse equal to one hundred percent of the monthly benefit amount that the participant was receiving at the time of death.

A participant who is not married at the time of the supplemental pension benefit purchase may contract only for a supplemental pension benefit as described in subdivision (1) and a participant who is married at the time of the supplemental pension benefit purchase may contract only for a supplemental pension benefit as described in subdivision (2) may contract for any of the three types of supplemental pension benefits provided in this section. The contract shall be signed by both the supplemental pension participant and the spouse of the participant, if applicable, and each signature shall be witnessed by a representative of the system or notarized.

    Section 49. That § 3-12-207 be amended to read:

    3-12-207. The disability benefit approved pursuant to § 3-12-206 is the greater of the following calculations:

            (1)    Twenty-five percent of the foundation member's final average compensation at the date of disability; or

            (2)    The foundation member's unreduced accrued retirement benefit at the date of disability.

    The disability benefit shall be paid in monthly installments for the life of the foundation member unless the benefit terminates pursuant to § 3-12-210.

    For purposes of determining the eligibility of a surviving spouse benefit, the disability benefit of a foundation member is considered a retirement benefit when the member attains the age of sixty-five normal retirement age.

    Section 50. That § 3-12-215 be amended to read:

    3-12-215. If no family benefit is being paid pursuant to § 3-12-214, a surviving spouse of a foundation member who received disability benefits pursuant to § 3-12-207 shall, upon attaining the age of sixty-five, receive a monthly benefit, payable for the life of the surviving spouse, equal to one of the following calculations, whichever is applicable:

            (1)    If there was a family benefit paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the improvement factor from the date the last family benefit was paid; or

            (2)    If there was no family benefit paid, sixty percent of the deceased member's disability benefit paid at the time of the member's death, increased by the improvement factor from the date of the member's death.

    Section 51. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, actuarial equivalent, is a benefit of equal value, computed on the basis of the interest rate, mortality, and improvement factor assumptions adopted by the board for purposes of the actuarial valuation. If the board adopts a select and ultimate rate of interest, the interest rate is the ultimate rate. Mortality is based on a unisex rate that is fifty percent male and fifty percent female for employees and beneficiaries, based on the mortality rates for retired employees and beneficiaries, including, if the board adopts a generational mortality table, projection of mortality improvement to the year specified by the board based on the member's and beneficiary's ages as of the date of the calculation and projected generationally after that year. Separate improvement factor assumptions shall be made for foundation and generational members. The system shall make the interest rate, mortality, and improvement factor assumptions public.

    Section 52. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the term, compensation, means gross wages paid to a member by the employer for personal services rendered during the period considered as credited service. Compensation includes amounts reported as wages, tips, and other compensation on the member's federal form W-2 wage and tax statement, except as otherwise excluded in this section; the amount of member contributions made by an employer after June 30, 1984, pursuant to § 3-12-71; any amount contributed to a member's individual retirement plan which meets the requirements of section 401, 403, 408, or 457 of the Internal Revenue Code; and any amount contributed to a plan described in section 125 of the Internal Revenue Code; and any amount contributed to the system pursuant to § 3-12-83.2 in accord with § 414(h)(2) of the Internal Revenue Code.

    Compensation does not include travel, meals, lodging, moving, or any other expenses incidental to an employer's business which is reimbursed by the employer; lump sum payments for sick leave; lump sum payments for annual leave; payments for insurance coverage of any kind or any other employee benefit by an employer on behalf of an employee or an employee and dependents; any amount paid in a one-time lump sum payment or over a period of time and based on or attributable to retirement or an agreement to retire in the future; payments made upon dismissal or severance; worker's compensation payments; and payments contingent on a member terminating employment at a specified time in the future paid or payable in a lump sum or over a period of time.

    Any compensation in excess of the limits established in § 401(a)(17) of the Internal Revenue Code shall be disregarded for purposes of contributions or for benefit calculations under the system. However, the limit does not apply to compensation earned by a member if the member was

employed by a participating unit before July 1, 1996.

    Section 53. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, a contributing member is any member for whom the system receives an employer contribution report that includes the member's employee and employer contributions indicating that the member is an active member. A member's active membership is terminated and the member is no longer a contributing member when the system receives notice of termination from an employer, accompanied by the member's final employee and employer contributions.

    Section 54. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of this chapter, the phrase, effective rate of interest, means the interest at an annually compounded rate to be established by the board for each fiscal year. The rate shall be no greater than ninety percent of the average ninety-one day United States treasury bill rate for the immediately preceding calendar year and in no event may the rate be more than the rate established by the board pursuant to § 3-12-121 for investment return for purposes of the actuarial valuation. If a member withdraws contributions pursuant to § 3-12-76, 3-12-76.1, or 3-12-77, or if benefits are payable under § 3-12-110, the interest shall be as annually compounded on the preceding June thirtieth.

    Section 55. That chapter 3-12 be amended by adding a NEW SECTION to read:

    For the purposes of determining eligibility for, and the amount of, any benefit payable pursuant to this chapter, the first day of the month in which a person's birthday falls is considered a person's birthday.

    Section 56. That § 3-12-47 be amended to read:

    3-12-47. Terms as used in this chapter, unless the context otherwise requires, mean:

            (1)    Repealed by SL 2000, ch 24, § 1.

            (2)    "Accumulated contributions," the sum of:

            (a)    All contributions by a member, including member contributions made by an employer on or after July 1, 1984, pursuant to § 3-12-71;

            (b)    Seventy-five percent of employer contributions if the member has less than three years contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) and the contributory service concluded prior to July 1, 2010, or fifty percent of employer contributions if the contributory service concluded on or after July 1, 2010, or one hundred percent of employer contributions if the member has three years or more contributory service or noncontributory service as delineated in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) and the contributory service concluded prior to July 1, 2010, or eighty-five percent of employer contributions if the contributory service concluded on or after July 1, 2010; and

            (c)    Member redeposits pursuant to § 3-12-80 and member credited service purchases pursuant to §§ 3-12-83, 3-12-84, and 3-12-84.2;

                all together with the effective rate of interest credited thereon.

                If credited service is purchased pursuant to § 3-12-83, 3-12-84, or 3-12-84.2, only the

amount of the purchase shall be included as accumulated contributions for the purposes of a refund under this chapter;

            (2A)    "Actuarial accrued liability," the present value of all benefits less the present value of future normal cost contributions;

            (3)    "Actuarial equivalent," a benefit of equal value, including the improvement factor assumption adopted by the board, computed on the basis of interest rate and mortality assumptions adopted by the board for purposes of the actuarial valuation. For purposes of this definition, if the board adopts a select and ultimate rate of interest, the interest rate is the ultimate rate. Also, for purposes of this definition, mortality shall be based on a unisex rate that is fifty percent male and fifty percent female for employees and beneficiaries, based on the mortality rates for retired employees and beneficiaries including, if the board adopts a generational mortality table, projection of mortality improvement to the calendar year containing the beginning of the plan year;

            (4)(2)    "Actuarial requirement," the normal cost and the interest on and amortization of the unfunded actuarial accrued liability accumulated to date over a thirty year period, all expressed in terms of a percentage of covered payroll;

            (5)(3)    "Actuarial experience analysis," a periodic report which reviews basic experience data and furnishes actuarial analysis which substantiates the assumptions adopted for the purpose of making an actuarial valuation of the system;

            (6)(4)    "Actuarial valuation," a projection of the present value of all benefits and the current funded status of the system, based upon stated assumptions as to rates of interest, mortality, disability, salary progressions, withdrawal, and retirement as established by a periodic actuarial experience analysis which takes into account census data of all active members, vested terminated members and retired members and their beneficiaries under the system;

            (6A)(5)    "Actuarial value of assets," the total assets of the system, taking market appreciation into account on a rational and systematic basis;

            (7)(6)    "Air rescue firefighters," employees of the Department of the Military who are stationed at Joe Foss Field, Sioux Falls, and who are directly involved in fire fighting firefighting activities on a daily basis;

            (8)    "Annuity," payment for life; all annuities shall be payable for life unless specifically provided for otherwise;

            (9)(7)    "Approved actuary," any actuary who is a member of the American Academy of Actuaries or an Associate or a Fellow of the Society of Actuaries who meets the qualification standards of the American Academy of Actuaries to issue actuarial opinions regarding the system or any firm retaining such an actuary on its staff and who is appointed by the board to perform actuarial services;

            (9A)(8)    "Assumed rate of return," the actuarial assumption adopted by the board pursuant to § 3-12-121 as the annual assumed percentage return on trust fund assets, compounded;

            (10)(9)    "Beneficiary," the person designated by a member of the system to receive any payments after the death of such member;

            (11)(10)    "Benefits," the amounts paid to a member, spouse, spouse and family, child, or beneficiary as a result of the provisions of this chapter;

            (12)(11)    "Board," the Board of Trustees of the South Dakota Retirement System;

            (12)    "Calendar quarter," a period of three calendar months ending March thirty-first, June thirtieth, September thirtieth, or December thirty-first of any year;

            (13)    "Campus security officers," employees of the Board of Regents whose positions are subject to the minimal educational training standards established by the law enforcement standards commission pursuant to chapter 23-3 and who satisfactorily complete the training required by chapter 23-3 within one year of employment and whose primary duty as sworn law enforcement officers is to preserve the safety of the students, faculty, staff, visitors and the property of the University of South Dakota and South Dakota State University. The employer shall file with the system evidence of the appointment as a sworn law enforcement officer at the time of employment and shall file evidence of satisfactory completion of the training program pursuant to chapter 23-3 within one year of employment;

            (14)    "Child," depending on the circumstances, as follows:

            (a)    For purposes of benefits pursuant to this chapter, an unmarried dependent child of the member, who has not passed the child's nineteenth birthday and each unmarried dependent child, who is totally and permanently disabled, either physically or mentally, regardless of the child's age, if the disability occurred prior to before age nineteen. It includes a stepchild or a foster child who depends on the member for support and lives in the household of the member in a regular parent-child relationship. It also includes any child of the member conceived during the member's lifetime and born after the member's death; or

            (b)    For purposes of beneficiary-type payments pursuant to this chapter, a person entitled to take as a child via intestate succession pursuant to the provisions of Title 29A;

            (15)    "Class A credited service," service credited as a Class A member of the system;

            (16)    "Class A member," all members any member other than a Class B members member or a Class C member and is either a foundation member or a generational member;

            (17)    "Class B credited service," service credited as a Class B member of the system;

            (18)    "Class B member," a member who is a justice, judge, state law enforcement officer, magistrate judge, police officer, firefighter, county sheriff, deputy county sheriff, penitentiary correctional staff, parole agent, air rescue firefighter, campus security officer, court services officer, conservation officer, or park ranger and is either a foundation member or a generational member;

            (18A)(19)    "Class C credited service," service credited as a Class C member of the system;

            (18B)(20)    "Class C member," any member of the cement plant retirement plan including any retiree or any vested member;

            (19)(21)    "Classified employees," employees of public school districts who are not required by law to be certified as teachers, employees of the colleges and universities under the control of the board of regents who are not faculty or administrators and come within the provisions of chapter 3-6A, employees of public corporations, employees of chartered governmental units, and all other participating employees not elsewhere provided for in this chapter;

            (19A)(22)    "Comparable level position," a member's position of employment that is generally equivalent to the member's prior position of employment in terms of required education, required experience, required training, required work history, geographic location, and compensation and benefits;

            (20)    "Compensation," gross wages paid to a member by the employer for personal services rendered during the period considered as credited service:

            (a)    Compensation includes amounts reported as wages, tips and other compensation on the member's federal form W-2 wage and tax statement, except as otherwise excluded in this subdivision; the amount of member contributions made by an employer on or after July 1, 1984, pursuant to § 3-12-71; any amount contributed to a member's individual retirement plan which meets the requirements of section 401, 403, 408, or 457 of the Internal Revenue Code; and any amount contributed to a plan described in section 125 of the Internal Revenue Code; and any amount contributed to the system pursuant to § 3-12-83.2 in accord with § 414(h)(2) of the Internal Revenue Code;

            (b)    Compensation does not include travel, meals, lodging, moving or any other expenses incidental to an employer's business which is reimbursed by the employer; lump sum payments for sick leave; lump sum payments for annual leave; payments for insurance coverage of any kind or any other employee benefit by an employer on behalf of an employee or an employee and dependents; any amount paid in a one-time lump sum payment or over a period of time and based on or attributable to retirement or an agreement to retire in the future; payments made upon dismissal or severance; worker's compensation payments; and payments contingent on a member terminating employment at a specified time in the future paid or payable in a lump sum or over a period of time;

            (c)    Any compensation in excess of the limits established in § 401(a)(17) of the Internal Revenue Code shall be disregarded for purposes of contributions or for benefit calculations under the system. However, the limit does not apply to compensation earned by a member if the member was employed by a participating unit on or before June 30, 1996;

            (21)(23)    "Conservation officers," employees of the Department of Game, Fish and Parks and the Division of Wildlife or Division of Custer State Park who are employed pursuant to § 41-2-11 and whose positions are subject to the requirements as to education and training provided in chapter 23-3;

            (21A)(24)    "Consumer price index," the consumer price index for urban wage earners and clerical workers calculated by the United States Bureau of Labor Statistics;

            (22)(25)    "Contributory service," service to a participating unit during which contributions were made to a South Dakota Retirement System, which may not include years of credited service as granted in § 3-12-84 or 3-12-84.2;

            (23)(26)    "Court services officers," persons appointed pursuant to § 26-7A-8;

            (23A)(27)    "Covered employment," a member's employment as a permanent full-time employee by a participating unit;

            (24)    "Credited service,"

            (a)    Years of service, or fractions thereof, for which member contributions were made to the system;

            (b)    Years of noncontributory service, or fractions thereof, credited prior to July 1, 1974, previously credited under the provisions of the retirement systems consolidated pursuant to § 3-12-46;

            (c)    Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;

            (d)    Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions;

            (e)    Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12-86;

            (f)    Years of service, or fractions thereof, by faculty and administrators employed by the board of regents prior to April 1, 1964, credited pursuant to §§ 3-12-69.4 and 3-12-69.5;

            (g)    Years of noncontributory service, or fractions thereof, earned prior to July 1, 1967, but not credited under the South Dakota public employee retirement system as it was consolidated pursuant to § 3-12-46 because the person earned the service prior to attaining the age of thirty. The service shall be credited only to those persons who are contributing members on July 1, 1987. No service may be credited pursuant to this subsection to any member who has withdrawn the member's accumulated contributions after July 1, 1967; and

            (h)    Years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under that system.

                If the conditions described in § 3-12-122 occur and benefit reductions are necessary to correct those conditions, the credited service granted by this subdivision may be reduced or eliminated;

            (25)(28)    "Deputy county sheriff," an employee of a county that is a participating unit, appointed by the board of county commissioners pursuant to §§ 7-12-9 and 7-12-10, who is a permanent full-time employee and whose position is subject to the minimum educational and training standards established by the law enforcement standards commission pursuant to chapter 23-3. The term "deputy county sheriff," does not include jailers or clerks appointed pursuant to §§ 7-12-9 and 7-12-10 unless the participating unit has requested that the jailer be considered as a deputy county sheriff and the Board of Trustees has approved the request;

            (26)(29)    "Disability" or "disabled," any medically determinable physical or mental impairment that prevents a member from performing the member's usual duties for the member's employer, even with accommodations, or performing the duties of a comparable level position for the member's employer. The term excludes any condition resulting from willful, self-inflicted injury;

            (26A)(30)    "Effective date of retirement," the first day of the month in which retirement benefits are payable pursuant to § 3-12-90;

            (27)    "Effective rate of interest," interest at an annually compounded rate to be established by the board for each fiscal year. The rate shall be no greater than ninety percent of the average ninety-one day United States treasury bill rate for the immediately preceding

calendar year and in no event may the rate be more than the rate established by the board pursuant to § 3-12-121 for investment return for purposes of the actuarial valuation. If a member withdraws contributions pursuant to § 3-12-76, 3-12-76.1, or 3-12-77, or if benefits are payable under § 3-12-110, the interest shall be as annually compounded on the preceding June thirtieth. With respect to amounts due the system under §§ 3-12-69, 3-12-69.3, 3-12-80, 3-12-83 and 3-12-84, the effective rate of interest shall be the assumed rate of return;

            (28)(31)    "Eligible retirement plan," the term eligible retirement plan includes those plans described in section 402(c)(8)(B) of the Internal Revenue Code;

            (29)(32)    "Eligible rollover distribution," any distribution to a member of accumulated contributions pursuant to §§ 3-12-76 and 3-12-76.1. The term does not include any portion of a distribution that represents contributions made to the system on an after tax basis nor distributions paid as a result of the member reaching the required beginning date;

            (30)(33)    "Employer," the State of South Dakota and any department, bureau, board, or commission thereof of the State of South Dakota, or any of its governmental or political subdivisions or any public corporation of the State of South Dakota which elects to become a participating unit;

            (31)(34)    "Employer contributions," amounts contributed by the employer of a contributing member, excluding member contributions made by an employer on or after July 1 June 30, 1984, pursuant to § 3-12-71;

            (32)    Repealed by SL 2004, ch 41, § 6.

            (32A)(35)    "Equivalent public service," any public service other than as a justice, a judge, or a magistrate judge and comparable to class Class B service as defined by this section, if the service is in the employ of a public entity that is not a participating unit;

            (36)    "Fair value of assets," the total assets of the system at fair market value for securities traded on exchanges; for securities not traded on exchanges, a value based on similar securities; and for alternative investments, reported net asset value;

            (37)    "Fair value funded ratio," the fair value of assets divided by the actuarial accrued liability;

            (33)(38)    "Fiduciary," any person who exercises any discretionary authority or control over the management of the system or the management or disposition of its assets, renders investment advice for a fee or other compensation, direct or indirect, or has any authority or responsibility to do so, or has any discretionary authority or responsibility in the administration of the system;

            (34)    "Final average compensation," the highest average annual compensation earned by a member during any period of twelve consecutive calendar quarters during the member's last forty calendar quarters of membership in the system including time during which the member was not a member but for which he has received credit under the system. If the compensation received in the last calendar quarter considered exceeds a set percentage of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters exceeds a set percentage of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess shall be excluded in the computation of final compensation. Those respective set percentages are as follows:

            (a)    On or before June 30, 2004, one hundred twenty-five percent and one hundred fifteen percent;

            (b)    Between July 1, 2004, and June 30, 2005, one hundred fifteen and one hundred ten percent; and

            (c)    On or after July 1, 2005, one hundred five percent and one hundred five percent.

                For purposes of determining final compensation periods for service separated by breaks, the service may be aggregated to constitute a period of twelve consecutive calendar quarters. The term calendar quarter means a period of three calendar months ending March thirty-first, June thirtieth, September thirtieth or December thirty-first of any year;

            (39)    "Foundation member," any member of the system whose contributory service began before July 1, 2017;

            (40)    "Foundation retiree," any foundation member who has retired with a benefit payable from the system;

            (35)(41)    "Firefighter," any full-time firefighter who works at least twenty hours a week and at least six months a year. The term does not include any volunteer firefighter;

            (36)(42)    "Full-time student," a person who is in full-time attendance as a student at an educational institution, as determined by the board in light of the standards and practices of the institution involved, except that no individual shall may be considered a full-time student, if he the student is paid by his the student's employer while attending such an educational institution at the request of, or pursuant to a requirement of, his the employer;

            (37)(43)    "Fund," public employees employees' retirement fund or funds established for the purposes of administration of this chapter;

            (38)(44)    "Funded ratio," the actuarial value of assets divided by the actuarial accrued liability;

            (39)(45)    "General employees," full-time municipal employees who are not firefighters or police officers;

            (46)    "Generational member," any member of the system whose contributory service began after June 30, 2017;

            (47)    "Generational retiree," any generational member who has retired with a benefit payable from the system;

            (39A)(48)    "Health care provider," a physician or other health care practitioner licensed, registered, certified, or otherwise authorized by law to provide specified health services;

            (40)(49)    "Highest annual compensation," a member's compensation used to calculate benefits under §§ 3-12-95, 3-12-99 and 3-12-105 prior to before July 1, 2004, which was the highest annual compensation earned by the member during any one of the last three years of contributory service and which was not more than one hundred fifteen percent of the member's final compensation calculated as of the date of the member's death or disability;

            (41)    "Improvement factor," the annual increase in the amount of the benefit allowance

commencing on the July first in the year after the member has received benefit payments for at least a twelve-month period, compounded annually. The improvement factor effective July 1, 2010, shall be two and one-tenth percent. Beginning July 1, 2010, the annual increase shall be established by the board for each fiscal year, in part on the basis of the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the past year in which the consumer price index was the highest), as follows:

            (a)    If the system's market value funded ratio is less than eighty percent, the improvement factor shall be two and one-tenth percent;

            (b)    If the system's market value funded ratio is eighty percent or greater but less than ninety percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent or no greater than two and four-tenths percent;

            (c)    If the system's market value funded ratio is ninety percent or greater but less than one hundred percent, the improvement factor shall be the increase in the consumer price index, but no less than two and one-tenth percent or no greater than two and eight-tenths percent; or

            (d)    If the system's market value funded ratio is one hundred percent or greater, the improvement factor shall be three and one-tenth percent;

            (41A)(50)    "Internal Revenue Code," or "code," the Internal Revenue Code as in effect as of January 1, 2015 2016;

            (42)(51)    "Law enforcement officer," an agent of the state division of criminal investigation, an officer of the South Dakota Highway Patrol, a police officer, county sheriff, deputy county sheriff, or a firefighter;

            (42A)    "Market value of assets," the total assets of the system at fair market value;

            (42B)    "Market value funded ratio," the market value of assets divided by the actuarial accrued liability;

            (43)(52)    "Member," any person who is participating in and has made contributions to the system and is either a foundation member or generational member. A person is no longer a member if he withdraws his contributions at person's membership ceases when the person withdraws his or her accumulated contributions after termination of employment;

            (44)(53)    "Member contributions," amounts contributed by members, including member contributions made by an employer on or after July 1 June 30, 1984, pursuant to § 3-12-71;

            (44A)(54)    "Military service," a period of active duty with the United States Army, the United States Navy, the United States Air Force, the United States Marine Corps, or the United States Coast Guard, from which duty the member received an honorable discharge or an honorable release;

            (45)(55)    "Municipality," any incorporated municipal government under chapter 9-3 or any chartered governmental unit under the provisions of Article IX of the Constitution of the State of South Dakota;

            (46)    Repealed by SL 2004, ch 42, § 8.

            (56)    "Noncontributory service," for foundation members, service delineated in subdivisions (2), (5), (7), and (8) of section 25 of this Act, and for generational members, service pursuant to § 3-12-86;

            (46A)(57)    "Normal cost," the expected long-term cost of the system benefits and expenses expressed as a percentage of payroll;

            (47)(58)    "Normal retirement," the termination of employment and application for benefits by a member with three or more years of contributory service or noncontributory service as delineated in subsections (b), (e), (g) and (h) of § 3-12-47(24) on or after the member's normal retirement age;

            (48)    "Normal retirement age," age sixty-five for Class A credited service and for Class B credited service as a justice, judge and magistrate judge and age fifty-five for other Class B credited service;

            (49)(59)    "Other public benefits," eighty percent of the primary insurance amount or primary social security benefits that would be provided under federal social security;

            (49A)(60)    "Other public service," service for the government of the United States, including military service; service for the government of any state or political subdivision thereof; service for any agency or instrumentality of any of the foregoing; or service as an employee of an association of government entities described in this subdivision;

            (50)(61)    "Park rangers," employees of the Department of Game, Fish and Parks within the Division of Parks and Recreation and whose positions are subject to the requirements as to education and training provided in chapter 23-3 and whose primary duty is law enforcement in the state park system;

            (51)(62)    "Parole agent," employees an employee of the Department of Corrections employed pursuant to § 24-15-14 who are is actually involved in direct supervision of parolees on a daily basis;

            (52)(63)    "Participating unit," the State of South Dakota and any department, bureau, board, or commission thereof of the State of South Dakota, and any of its political subdivisions or any public corporation of the State of South Dakota which has employees who are members of the retirement system created in this chapter;

            (53)(64)    "Penitentiary correctional staff," the warden, deputy warden, and any other correctional staff holding a security position as determined by the Department of Corrections and approved by the Bureau of Human Resources and the Bureau of Finance and Management. For purposes of administration of this chapter final determination of penitentiary correctional staff as Class B members shall be made by the board of trustees based on the recommendation of the Department of Corrections, Bureau of Human Resources, and the Bureau of Finance and Management;

            (54)(65)    "Permanent full-time employee," those employees who have any employee who has been placed in a permanent classification who are is customarily employed by a participating unit for twenty hours or more a week and at least six months a year. The participating unit shall decide if an employee is a permanent full-time employee and that decision is conclusive;

            (54A)(66)    "Plan year," a period extending from July first of one calendar year through June thirtieth of the following calendar year;

            (55)(67)    "Police officer," any employee in the police department of any participating municipality holding the rank of patrol officer, including probationary patrol officer, or higher rank and whose position is subject to the minimum educational and training standards established by the law enforcement officers standards commission pursuant to chapter 23-3. The term, police officer, does not include civilian employees of a police department nor any person employed by a municipality whose services as a police officer require less than twenty hours a week and six months a year. If a municipality which is a participating unit operates a city jail, the participating unit may request that any jailer appointed pursuant to § 9-29-25 be considered a police officer, subject to the approval of the board;

            (56)(68)    "Political subdivision" includes but is not limited to municipalities, school districts, counties, chartered governmental units, any public corporation or entity, and any special districts any municipality, school district, county, chartered governmental unit, public corporation or entity, and special district created for any governmental function;

            (56A)(69)    "Present value of all benefits," the present value of all benefits expected to be paid to all retired, terminated, and active members and beneficiaries, based on past and future credited service and future compensation increases.

            (57)(70)    "Present value of benefits earned to date," the present value of the benefits currently being paid to retired members and their beneficiaries and the present value of benefits payable at retirement to active members, based on their earnings and credited service to date of the actuarial valuation;

            (58)(71)    "Projected compensation," a deceased or disabled member's final average compensation multiplied by the improvement factor commencing each July first for each complete twelve-month period elapsed between the date of the member's death or disability, whichever occurred earlier, and the date the member would attain normal retirement age;

            (59)(72)    "Projected service," the credited service plus the service which the member would have been credited with at his normal retirement age had he the member continued in the system and received credit at the same rate he the member was credited during the year covered by the compensation that was used in the calculation of the disability or family benefit;

            (59A)(73)    "Qualified military service," service in the uniformed services as defined in § 414(u)(5) of the Internal Revenue Code;

            (60)    "Reduction age,"

            (a)    For Class A credited service, the age at which the sum of the member's age and credited service equals eighty-five. However, the reduction age may not be less than fifty-five for Class A credited service;

            (b)    For Class B credited service as a justice, judge, or magistrate judge, the age at which the sum of the member's age and credited service equals eighty. The reduction age may not be less than fifty-five for Class B credited service as a justice, judge, or magistrate judge;

            (c)    For Class B credited service other than as a justice, judge or magistrate judge, the age at which the sum of the member's age and credited service equals seventy-five. The reduction age for Class B credited service other than as a justice, judge, or magistrate judge may not be less than forty-five;

            (61)(74)    "Required beginning date," the later of April first of the calendar year following the calendar year in which the member attains age seventy and one-half or April first of the calendar year following the calendar year in which the member retires;

            (62)(75)    "Retiree," any foundation or generational member who retires with an annuity a lifetime benefit payable from the system;

            (63)(76)    "Retirement," the severance of a member from the employ of a participating unit with a retirement allowance benefit payable from the system;

            (64)(77)    "Retirement allowance benefit," the benefits that are monthly amount payable upon the retirement of a member;

            (64A)(78)    "Single premium," the lump-sum amount paid by a supplemental pension participant pursuant to a supplemental pension contract in consideration for a supplemental pension benefit;

            (64B)(79)    "Social investment," investment, divestment, or prohibition of investment of the assets of the system for purposes other than maximum risk-adjusted investment return, which other purposes include ideological purposes, environmental purposes, political purposes, religious purposes, or purposes of local or regional economic development;

            (65)(80)    "Spouse," a person who was married to the member at the time of the death of the member and whose marriage was both before the member's retirement and more than twelve months prior to before the death of the member and prior to the member's retirement;

            (66)(81)    "State employees," employees of the departments, bureaus, commissions, and boards of the State of South Dakota;

            (66A)(82)    "Supplemental pension benefit," any single-premium immediate pension benefit payable pursuant to §§ 3-12-192 and 3-12-193;

            (66B)(83)    "Supplemental pension contract," any agreement between a participant and the system upon which a supplemental pension is based, including the amount of the single premium, the type of pension benefit, and the monthly supplemental pension payment amount;

            (66C)(84)    "Supplemental pension contract record," the record for each supplemental pension participant reflecting relevant participant data; a designation of any beneficiary, if any; the amount of the participant's funds rolled into the fund; the provisions of the participant's supplemental pension contract; and supplemental pension payments made pursuant to the contract;

            (66D)(85)    "Supplemental pension participant," any retiree receiving a benefit from the system who chooses to purchase a supplemental pension benefit pursuant to the provisions of this chapter;

            (66E)(86)    "Supplemental pension spouse," any person who was married to a supplemental pension participant at the time the participant entered into the supplemental pension contract;

            (67)(87)    "System," the South Dakota Retirement System created in this chapter;

            (68)(88)    "Tax-qualifying purchase unit," any participating unit which elects to allow the

unit's employees to purchase credited service on a tax-deferred basis by means of employer contribution agreements as outlined in §§ 3-12-83.1 and 3-12-83.2;

            (69)(89)    "Teacher," any person who has a valid teacher's certificate issued by the State of South Dakota, who is in the employ of a public school district, and shall also include the certified teachers employed by the Human Services Center, South Dakota Developmental Center--Redfield, State Penitentiary, Department of Education, State Training School, School for the Deaf, School for the Blind and the Visually Impaired, Children's Care Hospital and School, public nonprofit special education facilities, community support providers certified by the Department of Human Services and public financed multi-district education programs;

            (70)(90)    "Terminated," complete severance of employment from public service of any member by resignation or discharge, not including leave of absence, layoff, vacation leave, sick leave, or jury duty, and involving all termination proceedings routinely followed by the member's participating unit, including payment to the member for unused vacation leave, payment to the member for unused sick leave, payment to the member for severance of an employment contract, severance of employer-provided health insurance coverage, severance of employer-provided life insurance coverage, or severance of any other such employer-provided perquisite of employment granted by the member's participating unit to an active employee;

            (71)(91)    "Trustee," a member of the board of trustees;

            (72)(92)    "Unfunded actuarial accrued liability," the actuarial accrued liability less the actuarial value of assets;

            (73)(93)    "Vested," the right to a retirement annuity benefit from the system based on the provisions of this chapter after three years of contributory service or noncontributory service as delineated in subsections (b), (e), (g) and (h) of § 3-12-47(24), even if the member leaves the employment of a participating unit, provided that the member does not withdraw accumulated contributions. A member who leaves the employment of a participating unit is not entitled to benefits under §§ 3-12-95, 3-12-98, 3-12-99, 3-12-104, and 3-12-105.

     Signed February 23, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\032.wpd


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\033.wpd
CHAPTER 33

(HB 1214)

Conflicts of interest for authority, board, or commission members.


        ENTITLED, An Act to regulate conflicts of interest for authority, board, or commission members.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That the code be amended by adding a NEW SECTION to read:

    No elected or appointed member of a state authority, board, or commission may have an interest in any contract or derive a direct benefit from any contract with the state which is within the jurisdiction or relates to the subject matter of the state authority, board or commission or with a political subdivision of the state if the political subdivision administers or executes similar subject

matter programs as the state authority, board or commission, nor may the member have an interest in any contract or derive a direct benefit from any contract for one year after the end of the member's term on the authority, board, or commission except as provided in section 3 and section 4 of this Act.

    Section 2. That the code be amended by adding a NEW SECTION to read:

    An elected or appointed member of an authority, board, or commission derives a direct benefit from a contract if the state authority, board, or commission member, the authority, board, or commission member's spouse, or any other persons the authority, board, or commission member lives with and commingles assets:

            (1)    Has more than a five percent ownership or other interest in an entity that is a party to the contract;

            (2)    Derives income, compensation, or commission directly from the contract or from the entity that is a party to the contract;

            (3)    Acquires property under the contract; or

            (4)    Serves on the board of directors of an entity that derives income or commission directly from the contract or acquires property under the contract.

    An authority, board, or commission member does not derive a direct benefit from a contract based solely on the value associated with the authority, board, or commission member's investments or holdings, or the investments or holdings of other persons the authority, board, or commission member lives with and commingles assets. A member of an authority, board, or commission does not have an interest in a contract nor does the member receive a direct benefit by participating in a vote or a decision where the member's only interest is the effect of an act of general application.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    Any elected or appointed authority, board, or commission may authorize an authority, board, or commission member to have an interest in a contract or to derive a direct benefit from a contract if:

            (1)    The authority, board, or commission member has provided full written disclosure to the authority, board, or commission;

            (2)    The authority, board, or commission has reviewed the essential terms of the transaction or contract and the authority, board, or commission member's role in the contract or transaction; and

            (3)    The transaction and the terms of the contract are fair, reasonable, and not contrary to the public interest.

    No member of a state authority, board, or commission may participate in or vote upon a decision of the state authority, board, or commission relating to a matter in which the member has an interest or derives a direct benefit.

    The authorization shall be in writing. Any authorization given pursuant to this section is a public record. Each authorization shall be filed with the auditor-general. The auditor-general shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee. A member of an authority, board, or commission may comply with this section if: the authority, board, or commission puts on its regular meeting agenda an inquiry for conflicts disclosure prior to the consideration of any substantive matters; the member publicly discloses his or her interest in a contract, direct benefits, or other conflict with any matter on the agenda; the member is excused from discussion and consideration of the matter; the board determines the matter

underlying the conflict is fair, reasonable, and not contrary to the public interest; and the disclosure is included in the minutes which are publicly available.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    Within the one-year period prohibiting any contract with an elected or appointed authority, board, or commission, the authority, board, or commission may approve a former authority, board, or commission member to contract with the elected or appointed authority, board, or commission if the authority, board, or commission determines that the transaction and the terms of the contract are fair, reasonable, and are in the best interests of the public. The authorization shall be in writing.

    Any approval given pursuant to this section is a public record. Each approval shall be filed with the auditor-general. The auditor-general shall compile the approvals and present them annually for review by the Government Operations and Audit Committee.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    Any elected or appointed authority, board, or commission member who knowingly violates sections 1 to 4, inclusive, of this Act, shall be removed from the authority, board, or commission and is guilty of a Class 1 misdemeanor. Any benefit to the authority, board, or commission member in violation of sections 1 and 2 of this Act is subject to forfeiture and any contract made in violation of this Act is voidable by the authority, board, or commission.

    Section 6. That the code be amended by adding a NEW SECTION to read:

    No board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity that receives money from or through the state may have an interest in a contract nor receive a direct benefit from a contract that the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity is a party to the contract except as provided in section 8 of this Act.

    Section 7. That the code be amended by adding a NEW SECTION to read:

    A person described in section 6 of this Act derives a direct benefit from a contract if the person, the person's spouse, or other persons the person lives with and commingles assets:

            (1)    Has more than a five percent ownership or other interest in an entity that is a party to the contract;

            (2)    Derives income, compensation, or commission directly from the contract or from the entity that is a party to the contract;

            (3)    Acquires property under the contract; or

            (4)    Serves on the board of directors of an entity that derives income directly from the contract or acquires property under the contract.

    A person does not derive a direct benefit from a contract based solely on the value associated with the person's investments or holdings, or the investments or holdings of other persons the state officer or employee lives with and commingles assets.

    Section 8. That the code be amended by adding a NEW SECTION to read:

    A local service agency, school district, cooperative education service unit, education service

agency, nonprofit education service agency, or jointly governed education service entity may authorize a board member, fiscal agent, officer, or executive to have an interest in a contract or derive a direct benefit from a contract if:

            (1)    The person has provided full written disclosure to the agency, district, or unit governing board;

            (2)    The governing board has reviewed the essential terms of the transaction or contract and the person's role in the contract or transaction; and

            (3)    The transaction or the terms of the contract are fair, reasonable, and not contrary to the public interest.

    No member of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may participate in or vote upon a decision of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity relating to a matter in which the member has an interest or derives a direct benefit.

    The authorization shall be in writing. Any authorization given pursuant to this section is a public record. Each authorization shall be filed with the auditor-general. The auditor-general shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee. A board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may comply with this section if: the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity puts on its regular meeting agenda an inquiry for conflicts disclosure prior to the consideration of any substantive matters; the person subject to this Act publicly discloses his or her interest in a contract, direct benefit, or other conflict with any matter on the agenda; the person is excused from discussion and consideration of such matters; the board determines the matter underlying the conflict is fair, reasonable, and not contrary to the public interest; and the disclosure is included in the minutes which are publicly available.

    Section 9. That the code be amended by adding a NEW SECTION to read:

    Any person who knowingly violates sections 6 to 8, inclusive, of this Act shall be removed from office or employment and is guilty of a Class 1 misdemeanor. Any benefit to a person derived from the person's knowing violation of sections 6 to 8, inclusive, of this Act is subject to forfeiture. Any contract made in violation of sections 6 to 8, inclusive, of this Act is voidable by the governing body of the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity.

    Section 10. That the code be amended by adding a NEW SECTION to read:

    The following authorities, boards, or commissions are subject to this Act:

            (1)    South Dakota Building Authority;

            (2)    Board of Economic Development;

            (3)    South Dakota Housing Development Authority;

            (4)    South Dakota Health and Education Facilities Authority;

            (5)    Science and Technology Authority Board of Directors;

            (6)    South Dakota Ellsworth Development Authority;

            (7)    South Dakota Commission on Gaming;

            (8)    South Dakota Lottery Commission;

            (9)    State Brand Board;

            (10)    Game, Fish and Parks Commission;

            (11)    Banking Commission;

            (12)    Board of Trustees of the South Dakota Retirement System;

            (13)    Aeronautics Commission;

            (14)    South Dakota State Railroad Board;

            (15)    Transportation Commission;

            (16)    South Dakota Board of Education;

            (17)    Board of Regents;

            (18)    Board of Pardons and Paroles;

            (19)    Board of Minerals and Environment;

            (20)    Board of Water and Natural Resources;

            (21)    South Dakota Railroad Authority; and

            (22)    Board of Water Management.

    Section 11. That the code be amended by adding a NEW SECTION to read:

    Any entity established pursuant to § 13-3-76 to 13-3-81 not subject to an audit requirement under § 13-5-33.2 shall be audited annually. Each audit required under state law shall be done to confirm compliance with sections 3 and 8 of this Act according to guidelines established by the auditor-general.

     Signed March 10, 2016
_______________
End Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\033.wpd



PUBLIC FISCAL ADMINISTRATION

_______________


Start Included file Y:\LMDATA\SESSIONS\91-2016\SessionLaws\034.wpd
CHAPTER 34

(SB 172)

The General Appropriation Act for fiscal year 2017.


        ENTITLED, An Act to appropriate money for the ordinary expenses of the legislative, judicial, and executive departments of the state, the expenses of state institutions, interest on the public debt, and for common schools.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. There is hereby appropriated out of any money in the state treasury not otherwise appropriated the following sums of money or expenditure authority, or so much thereof as may be necessary, for the ordinary expenses of the legislative, judicial, and executive departments of the state, certain officers, boards, and commissions, and support and maintenance of the educational, charitable, and penal institutions of the state for the fiscal year ending June 30, 2017.

GENERAL FEDERAL OTHER TOTAL
FUNDS FUNDS FUNDS FUNDS
SECTION 2. DEPARTMENT OF EXECUTIVE MANAGEMENT      
(1)   Office of the Governor          
   
Personal Services  
$1,872,169   $0   $0   $1,872,169  
   
Operating Expenses  
$443,685   $0   $0   $443,685  
             
   
Total  
$2,315,854   $0   $0   $2,315,854  
   
F.T.E.  
      21.5  
             
(2)   Governor's Contingency Fund          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$75,000   $0   $0   $75,000  
             
   
Total  
$75,000   $0   $0   $75,000  
   
F.T.E.  
      0.0  
             
(3)   Governor's Office of Economic Development        
   
Personal Services  
$1,710,016   $540,305   $643,602   $2,893,923  
   
Operating Expenses  
$875,311   $8,925,312   $33,551,132   $43,351,755  
             
   
Total  
$2,585,327   $9,465,617   $34,194,734   $46,245,678  
   
F.T.E.  
      40.6  
             
(4)   Office of Research Commerce          
   
Personal Services  
$180,466   $0   $0   $180,466  
   
Operating Expenses  
$3,939,668   $0   $500,000   $4,439,668  
             
   
Total  
$4,120,134   $0   $500,000   $4,620,134  
   
F.T.E.  
      2.0  
             
(5)   SD Housing Development Authority--Informational        
   
Personal Services  
$0   $1,485,134   $3,337,666   $4,822,800  
   
Operating Expenses  
$0   $679,308   $7,490,960   $8,170,268  
             
   
Total  
$0   $2,164,442   $10,828,626   $12,993,068  
   
F.T.E.  
      65.0  
             
(6)   SD Science and Technology Authority--Informational        
   
Personal Services  
$0   $0   $152,719   $152,719  
   
Operating Expenses  
$0   $0   $2,325,347   $2,325,347  
             
   
Total  
$0   $0   $2,478,066   $2,478,066  
   
F.T.E.  
      0.7  
             
(7)   SD Ellsworth Development Authority--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $611,420   $611,420  
             
   
Total  
$0   $0   $611,420   $611,420  
   
F.T.E.  
      0.0  
             
(8A)   Building SD - REDI Grants - Info          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $500,000   $500,000  
             
   
Total  
$0   $0   $500,000   $500,000  
   
F.T.E.  
      0.0  
             
(8B)   Building SD - Local Infrastructure Improvement - Info        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,500,000   $2,500,000  
             
   
Total  
$0   $0   $2,500,000   $2,500,000  
   
F.T.E.  
      0.0  
             
(8C)   Building SD - Economic Development Partnership        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $1,500,000   $1,500,000  
             
   
Total  
$0   $0   $1,500,000   $1,500,000  
   
F.T.E.  
      0.0  
             
(8D)   Building SD - SD Housing Opportunity - Info        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,500,000   $2,500,000  
             
   
Total  
$0   $0   $2,500,000   $2,500,000  
   
F.T.E.  
      0.0  
             
(9)   Lieutenant Governor          
   
Personal Services  
$21,338   $0   $0   $21,338  
   
Operating Expenses  
$13,268   $0   $0   $13,268  
             
   
Total  
$34,606   $0   $0   $34,606  
   
F.T.E.  
      0.5  
             
(10)   Bureau of Finance and Management (BFM)        
   
Personal Services  
$686,876   $0   $2,426,885   $3,113,761  
   
Operating Expenses  
$223,908   $0   $2,567,139   $2,791,047  
             
   
Total  
$910,784   $0   $4,994,024   $5,904,808  
   
F.T.E.  
      36.0  
             
(11)   Sale Leaseback, BFM          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$4,000,000   $0   $0   $4,000,000  
             
   
Total  
$4,000,000   $0   $0   $4,000,000  
   
F.T.E.  
      0.0  
             
(12)   Computer Services and Development        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,000,000   $2,000,000  
             
   
Total  
$0   $0   $2,000,000   $2,000,000  
   
F.T.E.  
      0.0  
             
(13)   Building Authority--Informational        
   
Personal Services  
$0   $0   $2,500   $2,500  
   
Operating Expenses  
$0   $0   $578,601   $578,601  
             
   
Total  
$0   $0   $581,101   $581,101  
   
F.T.E.  
      0.0  
             
(14)   Health & Education Facilities Authority--Informational      
   
Personal Services  
$0   $0   $495,857   $495,857  
   
Operating Expenses  
$0   $0   $229,412   $229,412  
             
   
Total  
$0   $0   $725,269   $725,269  
   
F.T.E.  
      6.0  
             
(15)   Employee Compensation and Billing Pools        
   
Personal Services  
$11,532,200   $5,533,644   $12,471,646   $29,537,490  
   
Operating Expenses  
$784,902   $561,580   $473,685   $1,820,167  
             
   
Total  
$12,317,102   $6,095,224   $12,945,331   $31,357,657  
   
F.T.E.  
      0.0  
             
(16)   Educational Enhancement Funding Corporation--Informational      
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $184,029   $184,029  
             
   
Total  
$0   $0   $184,029   $184,029  
   
F.T.E.  
      0.0  
             
(17)   Administrative Services, Bureau of Administration (BOA)      
   
Personal Services  
$0   $0   $379,687   $379,687  
   
Operating Expenses  
$683   $0   $111,957   $112,640  
             
   
Total  
$683   $0   $491,644   $492,327  
   
F.T.E.  
      3.5  
             
(18)   Sale Leaseback (BOA)          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$289,450   $0   $0   $289,450  
             
   
Total  
$289,450   $0   $0   $289,450  
   
F.T.E.  
      0.0  
             
(19)   Central Services          
   
Personal Services  
$186,880   $0   $6,850,077   $7,036,957  
   
Operating Expenses  
$210,049   $0   $18,064,367   $18,274,416  
             
   
Total  
$396,929   $0   $24,914,444   $25,311,373  
   
F.T.E.  
      135.5  
             
(20)   State Engineer          
   
Personal Services  
$0   $0   $1,055,942   $1,055,942  
   
Operating Expenses  
$0   $0   $231,829   $231,829  
             
   
Total  
$0   $0   $1,287,771   $1,287,771  
   
F.T.E.  
      14.0  
             
(21)   Statewide Maintenance and Repair        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$17,771,043   $500,000   $3,089,246   $21,360,289  
             
   
Total  
$17,771,043   $500,000   $3,089,246   $21,360,289  
   
F.T.E.  
      0.0  
             
(22)   Office of Hearing Examiners          
   
Personal Services  
$259,691   $0   $0   $259,691  
   
Operating Expenses  
$73,570   $0   $0   $73,570  
             
   
Total  
$333,261   $0   $0   $333,261  
   
F.T.E.  
      3.0  
             
(23)   Obligation Recovery Center          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$450,000   $0   $0   $450,000  
             
   
Total  
$450,000   $0   $0   $450,000  
   
F.T.E.  
      0.0  
             
(24)   Risk Management Administration - Informational        
   
Personal Services  
$0   $0   $512,312   $512,312  
   
Operating Expenses  
$0   $0   $3,440,013   $3,440,013  
             
   
Total  
$0   $0   $3,952,325   $3,952,325  
   
F.T.E.  
      6.0  
             
(25)   Risk Management Claims - Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,222,898   $2,222,898  
             
   
Total  
$0   $0   $2,222,898   $2,222,898  
   
F.T.E.  
      0.0  
             
(26)   Captive Insurance Pool          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $1,836,000   $1,836,000  
             
   
Total  
$0   $0   $1,836,000   $1,836,000  
   
F.T.E.  
      0.0  
             
(27)   Data Centers, Bureau of Information and Telecommunications (BIT)      
   
Personal Services  
$0   $0   $5,242,874   $5,242,874  
   
Operating Expenses  
$0   $0   $4,400,416   $4,400,416  
             
   
Total  
$0   $0   $9,643,290   $9,643,290  
   
F.T.E.  
      64.0  
             
(28)   Development          
   
Personal Services  
$0   $0   $12,310,247   $12,310,247  
   
Operating Expenses  
$0   $0   $2,183,487   $2,183,487  
             
   
Total  
$0   $0   $14,493,734   $14,493,734  
   
F.T.E.  
      153.0  
             
(29)   Telecommunications Services          
   
Personal Services  
$0   $0   $6,840,755   $6,840,755  
   
Operating Expenses  
$0   $0   $9,988,057   $9,988,057  
             
   
Total  
$0   $0   $16,828,812   $16,828,812  
   
F.T.E.  
      86.0  
             
(30)   South Dakota Public Broadcasting        
   
Personal Services  
$2,794,243   $0   $914,004   $3,708,247  
   
Operating Expenses  
$1,258,563   $422,484   $2,731,240   $4,412,287  
             
   
Total  
$4,052,806   $422,484   $3,645,244   $8,120,534  
   
F.T.E.  
      59.5  
             
(31)   BIT Administration          
   
Personal Services  
$0   $0   $1,580,602   $1,580,602  
   
Operating Expenses  
$0   $0   $321,661   $321,661  
             
   
Total  
$0   $0   $1,902,263   $1,902,263  
   
F.T.E.  
      17.0  
             
(32)   State Radio Engineering          
   
Personal Services  
$739,413   $45,524   $11,617   $796,554  
   
Operating Expenses  
$2,292,324   $166,420   $143,927   $2,602,671  
             
   
Total  
$3,031,737   $211,944   $155,544   $3,399,225  
   
F.T.E.  
      11.0  
             
(33)   Personnel Management and Employee Benefits (BHR)        
   
Personal Services  
$209,552   $0   $4,556,409   $4,765,961  
   
Operating Expenses  
$63,504   $0   $1,963,793   $2,027,297  
             
   
Total  
$273,056   $0   $6,520,202   $6,793,258  
   
F.T.E.  
      73.5  
             
(34)   DEPARTMENT TOTAL, EXECUTIVE MANAGEMENT      
   
Personal Services  
$20,192,844   $7,604,607   $59,785,401   $87,582,852  
   
Operating Expenses  
$32,764,928   $11,255,104   $108,240,616   $152,260,648  
             
   
Total  
$52,957,772   $18,859,711   $168,026,017   $239,843,500  
   
F.T.E.  
      798.3  
             
SECTION 3. DEPARTMENT OF REVENUE        
(1)   Administration, Secretary of Revenue        
   
Personal Services  
$0   $0   $2,080,738   $2,080,738  
   
Operating Expenses  
$0   $0   $1,633,589   $1,633,589  
             
   
Total  
$0   $0   $3,714,327   $3,714,327  
   
F.T.E.  
      28.0  
             
(2)   Business Tax          
   
Personal Services  
$0   $0   $3,558,749   $3,558,749  
   
Operating Expenses  
$0   $0   $888,343   $888,343  
             
   
Total  
$0   $0   $4,447,092   $4,447,092  
   
F.T.E.  
      57.5  
             
(3)   Motor Vehicles          
   
Personal Services  
$0   $0   $2,352,847   $2,352,847  
   
Operating Expenses  
$0   $0   $6,439,668   $6,439,668  
             
   
Total  
$0   $0   $8,792,515   $8,792,515  
   
F.T.E.  
      46.0  
             
(4)   Property and Special Taxes          
   
Personal Services  
$999,420   $0   $0   $999,420  
   
Operating Expenses  
$264,033   $0   $0   $264,033  
             
   
Total  
$1,263,453   $0   $0   $1,263,453  
   
F.T.E.  
      15.0  
             
(5)   Audits          
   
Personal Services  
$0   $0   $3,941,952   $3,941,952  
   
Operating Expenses  
$0   $0   $597,261   $597,261  
             
   
Total  
$0   $0   $4,539,213   $4,539,213  
   
F.T.E.  
      55.0  
             
(6)   Instant and On-line Operation--Informational        
   
Personal Services  
$0   $0   $1,411,500   $1,411,500  
   
Operating Expenses  
$0   $0   $36,936,302   $36,936,302  
             
   
Total  
$0   $0   $38,347,802   $38,347,802  
   
F.T.E.  
      21.0  
             
(7)   Video Lottery          
   
Personal Services  
$0   $0   $672,358   $672,358  
   
Operating Expenses  
$0   $0   $1,940,101   $1,940,101  
             
   
Total  
$0   $0   $2,612,459   $2,612,459  
   
F.T.E.  
      10.0  
             
(8)   Commission on Gaming--Informational        
   
Personal Services  
$0   $0   $1,033,429   $1,033,429  
   
Operating Expenses  
$0   $0   $9,609,873   $9,609,873  
             
   
Total  
$0   $0   $10,643,302   $10,643,302  
   
F.T.E.  
      16.0  
             
(9)   DEPARTMENT TOTAL, REVENUE        
   
Personal Services  
$999,420   $0   $15,051,573   $16,050,993  
   
Operating Expenses  
$264,033   $0   $58,045,137   $58,309,170  
             
   
Total  
$1,263,453   $0   $73,096,710   $74,360,163  
   
F.T.E.  
      248.5  
             
SECTION 4. DEPARTMENT OF AGRICULTURE        
(1)   Administration, Secretary of Agriculture        
   
Personal Services  
$682,362   $42,302   $76,542   $801,206  
   
Operating Expenses  
$186,254   $18,665   $93,841   $298,760  
             
   
Total  
$868,616   $60,967   $170,383   $1,099,966  
   
F.T.E.  
      9.5  
             
(2)   Agricultural Services and Assistance        
   
Personal Services  
$1,463,240   $1,841,056   $1,157,436   $4,461,732  
   
Operating Expenses  
$608,744   $1,995,468   $1,882,808   $4,487,020  
             
   
Total  
$2,071,984   $3,836,524   $3,040,244   $8,948,752  
   
F.T.E.  
      81.9  
             
(3)   Agricultural Development and Promotion        
   
Personal Services  
$1,260,234   $473,431   $162,632   $1,896,297  
   
Operating Expenses  
$463,895   $1,132,230   $670,648   $2,266,773  
             
   
Total  
$1,724,129   $1,605,661   $833,280   $4,163,070  
   
F.T.E.  
      29.0  
             
(4)   Animal Industry Board          
   
Personal Services  
$1,715,416   $1,072,434   $132,772   $2,920,622  
   
Operating Expenses  
$342,429   $622,804   $141,640   $1,106,873  
             
   
Total  
$2,057,845   $1,695,238   $274,412   $4,027,495  
   
F.T.E.  
      41.0  
             
(5)   American Dairy Association--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,540,100   $2,540,100  
             
   
Total  
$0   $0   $2,540,100   $2,540,100  
   
F.T.E.  
      0.0  
             
(6)   Wheat Commission--Informational        
   
Personal Services  
$0   $0   $234,930   $234,930  
   
Operating Expenses  
$0   $0   $1,882,106   $1,882,106  
             
   
Total  
$0   $0   $2,117,036   $2,117,036  
   
F.T.E.  
      3.0  
             
(7)   Oilseeds Council--Informational          
   
Personal Services  
$0   $0   $1,309   $1,309  
   
Operating Expenses  
$0   $0   $363,954   $363,954  
             
   
Total  
$0   $0   $365,263   $365,263  
   
F.T.E.  
      0.0  
             
(8)   Soybean Research and Promotion Council--Informational      
   
Personal Services  
$0   $0   $510,828   $510,828  
   
Operating Expenses  
$0   $0   $10,523,756   $10,523,756  
             
   
Total  
$0   $0   $11,034,584   $11,034,584  
   
F.T.E.  
      8.0  
             
(9)   Brand Board--Informational          
   
Personal Services  
$0   $0   $1,594,056   $1,594,056  
   
Operating Expenses  
$0   $0   $524,003   $524,003  
             
   
Total  
$0   $0   $2,118,059   $2,118,059  
   
F.T.E.  
      33.0  
             
(10)   Corn Utilization Council--Informational        
   
Personal Services  
$0   $0   $105,950   $105,950  
   
Operating Expenses  
$0   $0   $5,815,082   $5,815,082  
             
   
Total  
$0   $0   $5,921,032   $5,921,032  
   
F.T.E.  
      1.0  
             
(11)   Board of Veterinary Medicine Examiners--Informational      
   
Personal Services  
$0   $0   $2,579   $2,579  
   
Operating Expenses  
$0   $0   $56,555   $56,555  
             
   
Total  
$0   $0   $59,134   $59,134  
   
F.T.E.  
      0.0  
             
(12)   Pulse Crops Council--Informational        
   
Personal Services  
$0   $0   $1,000   $1,000  
   
Operating Expenses  
$0   $0   $28,500   $28,500  
             
   
Total  
$0   $0   $29,500   $29,500  
   
F.T.E.  
      0.0  
             
(13)   State Fair          
   
Personal Services  
$0   $0   $904,176   $904,176  
   
Operating Expenses  
$322,567   $0   $2,287,640   $2,610,207  
             
   
Total  
$322,567   $0   $3,191,816   $3,514,383  
   
F.T.E.  
      19.5  
             
(14)   DEPARTMENT TOTAL, AGRICULTURE        
   
Personal Services  
$5,121,252   $3,429,223   $4,884,210   $13,434,685  
   
Operating Expenses  
$1,923,889   $3,769,167   $26,810,633   $32,503,689  
             
   
TOTAL  
$7,045,141   $7,198,390   $31,694,843   $45,938,374  
   
F.T.E.  
      225.9  
             
SECTION 5. DEPARTMENT OF TOURISM        
(1)   Tourism          
   
Personal Services  
$0   $0   $1,678,876   $1,678,876  
   
Operating Expenses  
$0   $0   $13,152,699   $13,152,699  
             
   
Total  
$0   $0   $14,831,575   $14,831,575  
   
F.T.E.  
      25.0  
             
(2)   Arts          
   
Personal Services  
$0   $0   $258,441   $258,441  
   
Operating Expenses  
$0   $878,000   $576,618   $1,454,618  
             
   
Total  
$0   $878,000   $835,059   $1,713,059  
   
F.T.E.  
      3.0  
             
(3)   DEPARTMENT TOTAL, TOURISM        
    Personal Services   $0   $0   $1,937,317   $1,937,317  
   
Operating Expenses  
$0   $878,000   $13,729,317   $14,607,317  
             
   
TOTAL  
$0   $878,000   $15,666,634   $16,544,634  
   
F.T.E.  
      28.0  
             
SECTION 6. DEPARTMENT OF GAME, FISH AND PARKS      
(1)   Administration, Secretary of Game, Fish and Parks        
   
Personal Services  
$130,451   $0   $2,057,946   $2,188,397  
   
Operating Expenses  
$821,916   $0   $1,138,385   $1,960,301  
             
   
Total  
$952,367   $0   $3,196,331   $4,148,698  
   
F.T.E.  
      27.6  
             
(2)   Wildlife--Informational          
   
Personal Services  
$0   $4,044,760   $14,394,113   $18,438,873  
   
Operating Expenses  
$0   $13,537,861   $15,378,412   $28,916,273  
             
   
Total  
$0   $17,582,621   $29,772,525   $47,355,146  
   
F.T.E.  
      294.0  
             
(3)   Wildlife, Development and Improvement--Informational      
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $1,078,250   $694,335   $1,772,585  
             
   
Total  
$0   $1,078,250   $694,335   $1,772,585  
   
F.T.E.  
      0.0  
             
(4)   State Parks and Recreation          
   
Personal Services  
$2,620,093   $910,324   $7,023,154   $10,553,571  
   
Operating Expenses  
$2,605,378   $2,695,957   $8,222,590   $13,523,925  
             
   
Total  
$5,225,471   $3,606,281   $15,245,744   $24,077,496  
   
F.T.E.  
      248.2  
             
(5)   State Parks and Recreation, Development and Improvement      
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $2,694,950   $6,053,657   $8,748,607  
             
   
Total  
$0   $2,694,950   $6,053,657   $8,748,607  
   
F.T.E.  
      0.0  
             
(6)   Snowmobile Trails--Informational          
   
Personal Services  
$0   $0   $387,450   $387,450  
   
Operating Expenses  
$0   $0   $908,729   $908,729  
             
   
Total  
$0   $0   $1,296,179   $1,296,179  
   
F.T.E.  
      9.1  
             
(7)   DEPARTMENT TOTAL, GAME, FISH AND PARKS        
   
Personal Services  
$2,750,544   $4,955,084   $23,862,663   $31,568,291  
   
Operating Expenses  
$3,427,294   $20,007,018   $32,396,108   $55,830,420  
             
   
TOTAL  
$6,177,838   $24,962,102   $56,258,771   $87,398,711  
   
F.T.E.  
      578.9  
             
SECTION 7. DEPARTMENT OF TRIBAL RELATIONS        
(1)   Office of Tribal Relations          
   
Personal Services  
$412,361   $0   $0   $412,361  
   
Operating Expenses  
$98,589   $0   $20,000   $118,589  
             
   
Total  
$510,950   $0   $20,000   $530,950  
   
F.T.E.  
      6.0  
         
(2)   DEPARTMENT TOTAL, TRIBAL RELATIONS        
   
Personal Services  
$412,361   $0   $0   $412,361  
   
Operating Expenses  
$98,589   $0   $20,000   $118,589  
             
   
Total  
$510,950   $0   $20,000   $530,950  
   
F.T.E.  
      6.0  
             
SECTION 8. DEPARTMENT OF SOCIAL SERVICES        
(1)   Administration, Secretary of Social Services        
   
Personal Services  
$4,375,231   $5,712,079   $10,073   $10,097,383  
   
Operating Expenses  
$4,492,097   $10,678,024   $9,269   $15,179,390  
             
   
Total  
$8,867,328   $16,390,103   $19,342   $25,276,773  
   
F.T.E.  
      182.7  
             
(2)   Economic Assistance          
   
Personal Services  
$7,915,147   $11,433,186   $23,792   $19,372,125  
   
Operating Expenses  
$18,095,732   $48,726,588   $317,023   $67,139,343  
             
   
Total  
$26,010,879   $60,159,774   $340,815   $86,511,468  
   
F.T.E.  
      320.5  
             
(3)   Medical and Adult Services          
   
Personal Services  
$3,130,649   $6,509,584   $169,272   $9,809,505  
   
Operating Expenses  
$313,039,236   $485,793,720   $1,625,860   $800,458,816  
             
   
Total  
$316,169,885   $492,303,304   $1,795,132   $810,268,321  
   
F.T.E.  
      151.0  
             
(4)   Children's Services          
   
Personal Services  
$11,807,473   $9,537,514   $1,667,868   $23,012,855  
   
Operating Expenses  
$33,548,337   $37,685,165   $3,056,772   $74,290,274  
             
   
Total  
$45,355,810   $47,222,679   $4,724,640   $97,303,129  
   
F.T.E.  
      353.8  
             
(5)   Behavioral Health          
   
Personal Services  
$30,739,411   $10,092,089   $1,672,825   $42,504,325  
   
Operating Expenses  
$48,687,720   $27,536,915   $1,404,923   $77,629,558  
             
   
Total  
$79,427,131   $37,629,004   $3,077,748   $120,133,883  
   
F.T.E.  
      653.0  
             
(6)   Board of Counselor Examiners--Informational        
   
Personal Services  
$0   $0   $2,960   $2,960  
   
Operating Expenses  
$0   $0   $90,045   $90,045  
             
   
Total  
$0   $0   $93,005   $93,005  
   
F.T.E.  
      0.0  
             
(7)   Board of Psychology Examiners--Informational        
   
Personal Services  
$0   $0   $3,639   $3,639  
   
Operating Expenses  
$0   $0   $73,271   $73,271  
             
   
Total  
$0   $0   $76,910   $76,910  
   
F.T.E.  
      0.0  
             
(8)   Board of Social Work Examiners--Informational        
   
Personal Services  
$0   $0   $3,008   $3,008  
   
Operating Expenses  
$0   $0   $98,729   $98,729  
             
   
Total  
$0   $0   $101,737   $101,737  
   
F.T.E.  
      0.0  
             
(9)   Board of Addiction and Prevention Professionals--Informational      
   
Personal Services  
$0   $0   $108,143   $108,143  
   
Operating Expenses  
$0   $0   $58,124   $58,124  
             
   
Total  
$0   $0   $166,267   $166,267  
   
F.T.E.  
      1.3  
             
(10)   DEPARTMENT TOTAL, SOCIAL SERVICES        
   
Personal Services  
$57,967,911   $43,284,452   $3,661,580   $104,913,943  
   
Operating Expenses  
$417,863,122   $610,420,412   $6,734,016   $1,035,017,550  
             
   
TOTAL  
$475,831,033   $653,704,864   $10,395,596   $1,139,931,493  
   
F.T.E.  
      1,662.3  
             
SECTION 9. DEPARTMENT OF HEALTH        
(1)   Administration, Secretary of Health        
   
Personal Services  
$726,935   $993,417   $614,217   $2,334,569  
   
Operating Expenses  
$208,907   $690,500   $867,189   $1,766,596  
             
   
Total  
$935,842   $1,683,917   $1,481,406   $4,101,165  
   
F.T.E.  
      32.0  
             
(2)   Health Systems Development and Regulation        
   
Personal Services  
$2,072,550   $3,463,283   $63,949   $5,599,782  
   
Operating Expenses  
$1,431,195   $6,797,990   $3,085,407   $11,314,592  
             
   
Total  
$3,503,745   $10,261,273   $3,149,356   $16,914,374  
   
F.T.E.  
      70.0  
             
(3)   Family and Community Health          
   
Personal Services  
$2,196,518   $9,821,005   $1,333,485   $13,351,008  
   
Operating Expenses  
$1,883,073   $14,452,369   $4,625,776   $20,961,218  
             
   
Total  
$4,079,591   $24,273,374   $5,959,261   $34,312,226  
   
F.T.E.  
      188.5  
             
(4)   Laboratory Services          
   
Personal Services  
$0   $604,552   $1,509,971   $2,114,523  
   
Operating Expenses  
$0   $2,703,463   $1,916,315   $4,619,778  
             
   
Total  
$0   $3,308,015   $3,426,286   $6,734,301  
   
F.T.E.  
      28.0  
             
(5)   Correctional Health          
   
Personal Services  
$0   $0   $7,035,212   $7,035,212  
   
Operating Expenses  
$0   $0   $14,017,721   $14,017,721  
             
   
Total  
$0   $0   $21,052,933   $21,052,933  
   
F.T.E.  
      87.0  
             
(6)   Tobacco Prevention          
   
Personal Services  
$0   $238,505   $0   $238,505  
   
Operating Expenses  
$0   $1,314,180   $4,500,212   $5,814,392  
             
   
Total  
$0   $1,552,685   $4,500,212   $6,052,897  
   
F.T.E.  
      3.0  
             
(7)   Board of Chiropractic Examiners--Informational        
   
Personal Services  
$0   $0   $62,107   $62,107  
   
Operating Expenses  
$0   $0   $48,426   $48,426  
             
   
Total  
$0   $0   $110,533   $110,533  
   
F.T.E.  
      1.0  
             
(8)   Board of Dentistry--Informational          
   
Personal Services  
$0   $0   $7,059   $7,059  
   
Operating Expenses  
$0   $0   $329,110   $329,110  
             
   
Total  
$0   $0   $336,169   $336,169  
   
F.T.E.  
      0.0  
             
(9)   Board of Hearing Aid Dispensers--Informational        
   
Personal Services  
$0   $0   $1,184   $1,184  
   
Operating Expenses  
$0   $0   $23,703   $23,703  
             
   
Total  
$0   $0   $24,887   $24,887  
   
F.T.E.  
      0.0  
             
(10)   Board of Funeral Service--Informational        
   
Personal Services  
$0   $0   $9,176   $9,176  
   
Operating Expenses  
$0   $0   $64,472   $64,472  
             
   
Total  
$0   $0   $73,648   $73,648  
   
F.T.E.  
      0.0  
             
(11)   Board of Medical and Osteopathic Examiners--Informational      
   
Personal Services  
$0   $0   $409,885   $409,885  
   
Operating Expenses  
$0   $0   $615,818   $615,818  
             
   
Total  
$0   $0   $1,025,703   $1,025,703  
   
F.T.E.  
      7.0  
             
(12)   Board of Nursing--Informational          
   
Personal Services  
$0   $0   $650,248   $650,248  
   
Operating Expenses  
$0   $0   $669,880   $669,880  
             
   
Total  
$0   $0   $1,320,128   $1,320,128  
   
F.T.E.  
      9.0  
             
(13)   Board of Nursing Home Administrators--Informational        
   
Personal Services  
$0   $0   $2,297   $2,297  
   
Operating Expenses  
$0   $0   $57,087   $57,087  
             
   
Total  
$0   $0   $59,384   $59,384  
   
F.T.E.  
      0.0  
             
(14)   Board of Optometry--Informational        
   
Personal Services  
$0   $0   $1,096   $1,096  
   
Operating Expenses  
$0   $0   $68,350   $68,350  
             
   
Total  
$0   $0   $69,446   $69,446  
   
F.T.E.  
      0.0  
             
(15)   Board of Pharmacy--Informational        
   
Personal Services  
$0   $0   $488,045   $488,045  
   
Operating Expenses  
$0   $0   $647,875   $647,875  
             
   
Total  
$0   $0   $1,135,920   $1,135,920  
   
F.T.E.  
      5.9  
             
(16)   Board of Podiatry Examiners--Informational        
   
Personal Services  
$0   $0   $281   $281  
   
Operating Expenses  
$0   $0   $21,194   $21,194  
             
   
Total  
$0   $0   $21,475   $21,475  
   
F.T.E.  
      0.0  
             
(17)   Board of Massage Therapy--Informational        
   
Personal Services  
$0   $0   $1,339   $1,339  
   
Operating Expenses  
$0   $0   $85,640   $85,640  
             
   
Total  
$0   $0   $86,979   $86,979  
   
F.T.E.  
      0.0  
             
(18)   Board of Speech-Language Pathology--Informational        
   
Personal Services  
$0   $0   $1,095   $1,095  
   
Operating Expenses  
$0   $0   $45,112   $45,112  
             
   
Total  
$0   $0   $46,207   $46,207  
   
F.T.E.  
      0.0  
             
(19)   DEPARTMENT TOTAL, HEALTH        
   
Personal Services  
$4,996,003   $15,120,762   $12,190,646   $32,307,411  
   
Operating Expenses  
$3,523,175   $25,958,502   $31,689,287   $61,170,964  
             
   
TOTAL  
$8,519,178   $41,079,264   $43,879,933   $93,478,375  
   
F.T.E.  
      431.4  
             
SECTION 10. DEPARTMENT OF LABOR AND REGULATION      
(1)   Administration, Secretary of Labor        
   
Personal Services  
$39,370   $3,168,595   $158,814   $3,366,779  
   
Operating Expenses  
$618,064   $11,941,677   $225,045   $12,784,786  
             
   
Total  
$657,434   $15,110,272   $383,859   $16,151,565  
   
F.T.E.  
      52.5  
             
(2)   Unemployment Insurance Services          
   
Personal Services  
$0   $4,044,391   $335,058   $4,379,449  
   
Operating Expenses  
$0   $667,674   $8,050   $675,724  
             
   
Total  
$0   $4,712,065   $343,108   $5,055,173  
   
F.T.E.  
      79.0  
             
(3)   Field Operations          
   
Personal Services  
$526,992   $9,141,457   $0   $9,668,449  
   
Operating Expenses  
$114,798   $1,466,290   $0   $1,581,088  
             
   
Total  
$641,790   $10,607,747   $0   $11,249,537  
   
F.T.E.  
      166.0  
             
(4)   State Labor Law Administration          
   
Personal Services  
$606,377   $398,580   $246,800   $1,251,757  
   
Operating Expenses  
$96,716   $77,783   $244,949   $419,448  
             
   
Total  
$703,093   $476,363   $491,749   $1,671,205  
   
F.T.E.  
      19.0  
             
(5)   Board of Accountancy--Informational        
   
Personal Services  
$0   $0   $143,841   $143,841  
   
Operating Expenses  
$0   $0   $173,265   $173,265  
             
   
Total  
$0   $0   $317,106   $317,106  
   
F.T.E.  
      2.5  
             
(6)   Board of Barber Examiners--Informational        
   
Personal Services  
$0   $0   $2,459   $2,459  
   
Operating Expenses  
$0   $0   $26,534   $26,534  
             
   
Total  
$0   $0   $28,993   $28,993  
   
F.T.E.  
      0.0  
             
(7)   Cosmetology Commission--Informational        
   
Personal Services  
$0   $0   $182,742   $182,742  
   
Operating Expenses  
$0   $0   $122,006   $122,006  
             
   
Total  
$0   $0   $304,748   $304,748  
   
F.T.E.  
      3.6  
             
(8)   Plumbing Commission--Informational        
   
Personal Services  
$0   $0   $409,025   $409,025  
   
Operating Expenses  
$0   $0   $201,579   $201,579  
             
   
Total  
$0   $0   $610,604   $610,604  
   
F.T.E.  
      7.0  
             
(9)   Board of Technical Professions--Informational        
   
Personal Services  
$0   $0   $181,539   $181,539  
   
Operating Expenses  
$0   $0   $183,305   $183,305  
             
   
Total  
$0   $0   $364,844   $364,844  
   
F.T.E.  
      3.5  
             
(10)   Electrical Commission--Informational        
   
Personal Services  
$0   $0   $1,171,723   $1,171,723  
   
Operating Expenses  
$0   $0   $488,233   $488,233  
             
   
Total  
$0   $0   $1,659,956   $1,659,956  
   
F.T.E.  
      22.0  
             
(11)   Real Estate Commission--Informational        
   
Personal Services  
$0   $0   $338,434   $338,434  
   
Operating Expenses  
$0   $0   $230,805   $230,805  
             
   
Total  
$0   $0   $569,239   $569,239  
   
F.T.E.  
      5.0  
             
(12)   Abstracters Board of Examiners--Informational        
   
Personal Services  
$0   $0   $17,386   $17,386  
   
Operating Expenses  
$0   $0   $9,578   $9,578  
             
   
Total  
$0   $0   $26,964   $26,964  
   
F.T.E.  
      0.0  
             
(13)   South Dakota Athletic Commission--Informational        
   
Personal Services  
$0   $0   $8,187   $8,187  
   
Operating Expenses  
$0   $0   $47,343   $47,343  
             
   
Total  
$0   $0   $55,530   $55,530  
   
F.T.E.  
      0.0  
             
(14)   Banking          
   
Personal Services  
$0   $0   $2,252,319   $2,252,319  
   
Operating Expenses  
$0   $0   $636,227   $636,227  
             
   
Total  
$0   $0   $2,888,546   $2,888,546  
   
F.T.E.  
      28.5  
             
(15)   Trust Captive Insurance Company - Informational        
   
Personal Services  
$0   $0   $15,000   $15,000  
   
Operating Expenses  
$0   $0   $258,750   $258,750  
             
   
Total  
$0   $0   $273,750   $273,750  
   
F.T.E.  
      0.0  
             
(16)   Securities          
   
Personal Services  
$0   $0   $425,502   $425,502  
   
Operating Expenses  
$0   $0   $84,473   $84,473  
             
   
Total  
$0   $0   $509,975   $509,975  
   
F.T.E.  
      5.7  
             
(17)   Insurance          
   
Personal Services  
$0   $154,668   $1,971,733   $2,126,401  
   
Operating Expenses  
$0   $389,961   $359,386   $749,347  
             
   
Total  
$0   $544,629   $2,331,119   $2,875,748  
   
F.T.E.  
      30.0  
             
(18)   South Dakota Retirement System          
   
Personal Services  
$0   $0   $2,540,250   $2,540,250  
   
Operating Expenses  
$0   $0   $1,781,742   $1,781,742  
             
   
Total  
$0   $0   $4,321,992   $4,321,992  
   
F.T.E.  
      33.0  
             
(19)   DEPARTMENT TOTAL, LABOR AND REGULATION      
   
Personal Services  
$1,172,739   $16,907,691   $10,400,812   $28,481,242  
   
Operating Expenses  
$829,578   $14,543,385   $5,081,270   $20,454,233  
             
   
TOTAL  
$2,002,317   $31,451,076   $15,482,082   $48,935,475  
   
F.T.E.  
      457.3  
             
SECTION 11. DEPARTMENT OF TRANSPORTATION        
(1)   General Operations          
   
Personal Services  
$509,754   $11,056,305   $58,290,877   $69,856,936  
   
Operating Expenses  
$25,502   $30,121,451   $95,184,531   $125,331,484  
             
   
Total  
$535,256   $41,177,756   $153,475,408   $195,188,420  
   
F.T.E.  
      1,026.3  
             
(2)   Construction Contracts--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $347,068,873   $144,544,285   $491,613,158  
             
   
Total  
$0   $347,068,873   $144,544,285   $491,613,158  
   
F.T.E.  
      0.0  
             
(3)   DEPARTMENT TOTAL, TRANSPORTATION        
   
Personal Services  
$509,754   $11,056,305   $58,290,877   $69,856,936  
   
Operating Expenses  
$25,502   $377,190,324   $239,728,816   $616,944,642  
             
   
Total  
$535,256   $388,246,629   $298,019,693   $686,801,578  
   
F.T.E.  
      1,026.3  
             
SECTION 12. DEPARTMENT OF EDUCATION        
(1)   Administration, Secretary of Education        
   
Personal Services  
$1,641,691   $1,337,342   $74,692   $3,053,725  
   
Operating Expenses  
$1,137,999   $5,427,935   $136,099   $6,702,033  
             
   
Total  
$2,779,690   $6,765,277   $210,791   $9,755,758  
   
F.T.E.  
      41.0  
             
(2)   Workforce Education Fund--Informational        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$0   $0   $2,500,000   $2,500,000  
             
   
Total  
$0   $0   $2,500,000   $2,500,000  
   
F.T.E.  
      0.0  
             
(3)   State Aid to General Education          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$448,404,255   $0   $0   $448,404,255  
             
   
Total  
$448,404,255   $0   $0   $448,404,255  
   
F.T.E.  
      0.0  
             
(4)   State Aid to Special Education          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$63,646,857   $0   $0   $63,646,857  
             
   
Total  
$63,646,857   $0   $0   $63,646,857  
   
F.T.E.  
      0.0  
             
(5)   Sparsity Payments          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$2,009,669   $0   $0   $2,009,669  
             
   
Total  
$2,009,669   $0   $0   $2,009,669  
   
F.T.E.  
      0.0  
             
(6)   National Board Certified Teachers          
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$150,000   $0   $0   $150,000  
             
   
Total  
$150,000   $0   $0   $150,000  
   
F.T.E.  
      0.0  
             
(7)   Technology and Innovation in Schools        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$13,281,276   $0   $1,822,505   $15,103,781  
             
   
Total  
$13,281,276   $0   $1,822,505   $15,103,781  
   
F.T.E.  
      0.0  
             
(8)   Postsecondary Vocational Education        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$23,076,976   $0   $0   $23,076,976  
             
   
Total  
$23,076,976   $0   $0   $23,076,976  
   
F.T.E.  
      0.0  
             
(9)   Postsecondary Voc Ed Tuition Assistance        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$1,831,820   $0   $0   $1,831,820  
             
   
Total  
$1,831,820   $0   $0   $1,831,820  
   
F.T.E.  
      0.0  
             
(10)   Postsecondary Instructor Salary Enhancements        
   
Personal Services  
$0   $0   $0   $0  
   
Operating Expenses  
$3,000,000   $0   $0   $3,000,000  
             
   
Total  
$3,000,000   $0   $0   $3,000,000  
   
F.T.E.