Committee on Appropriations A/V — 2019

*If you are unable to view the video, please update your browser.
DescriptionJump To
Roll00:01:13
South Dakota State Treasurer - Budget Overview Presentation - Page 100:02:25
Mr. Josh Haeder, State Treasurer, presented FY20 budget as recommended by the Governor. State Treasurer Haeder introduced staff and presented an overview of the State Treasurer's Office.00:03:03
State Treasurer Budget Request - FY20 $547,449 in general funds, $0 in federal fund expenditure authority, and $28,924,562 in other fund expenditure authority totaling $28,472,011 and includes 9.0 FTE.00:04:43
New Staff - Financial Services Staff and Unclaimed Property Staff- Page 200:05:18
Budget Overview - FY20 Budget Request $547,449 in General Funds and Unclaimed Property $28,924,562 (Other-Informational) and includes State Treasury Staff - 5.2 FTE and Unclaimed Property Staff 3.8 FTE - Page 300:06:05
Treasury Services - General Fund - Details - Breakdown Employee Salaries and Benefits $399,386, General Operating Expenses $12,507, Contractual Services $128,060, Supplies & Materials $5,396, and Capital Outlay $2,100 - Page 400:06:40
Unclaimed Property - $28,924,562 - Other Informational - The State Treasurer is holding millions of dollars in unclaimed funds. Costs of unclaimed property include: Employee Salary and Benefits $300,026, Operating Expenses $16,500, Contractual Services $580,536, Supplies & Materials $26,300, Capital Outlay $1,200 and estimated unclaimed property payments $28,000,000 - Page 500:07:30
Unclaimed Property Payments - Claim Paid by Fiscal Year and Unclaimed Property Receipts - FY15 to FY19 Charts - Page 600:08:00
Unclaimed Property (Continued) FY19 Audit Cost to Date: $2,856,091.03, FY20 Audit Cost Estimate $3,000,000. Audit of unclaimed property is estimated to conclude in the year 2020.00:08:49
Ms. Lee DeJabet, Administrator Unclaimed Property, gave an overview to the committee how unclaimed property is processed.00:09:10
Ms. DeJabet indicated the State Treasurer's Office contracts five separate firms to conduct unclaimed property audits. This year's audit costs $2.8M and exceeds their budget.00:10:34
Auditors charge 11% to 14% of assets reviewed for their fee. There is a large audit estimating to cost $3,000,000. This large audit will be completed in calendar year 2020.00:12:18
Senator Nesiba - question - what is the process of receiving unclaimed property.and what type of assets are referred to the State Treasurer00:14:27
Ms. DeJabet said you can call or email their office to make a claim. Many people use the State Treasurer's website.00:16:45
Senator Nesiba - question - how does Unclaimed Property become revenue; in other words, how do these assets become general funds for the State of South Dakota.00:17:39
Representative Howard - question - how does an unclaimed property audit benefit the State of South Dakota00:19:17
Senator Greenfield - question - are refunds, rebates, check cards, and checks treated the same by the Division of Unclaimed Property 00:21:20
Senator Greenfield - question - how does someone make a claim when their address is listed incorrectly and indicated he knows of constituents who have had troubles regaining their unclaimed property.00:24:51
State Treasurer Haeder indicated his office would make improve Unclaimed Property procedures.00:26:43
Representative Saba - comment - that he filed three separate times and has had difficulty making an unclaimed property claim and indicated he would like to see an easier process.00:28:01
Representative Hunhoff - question - will there be changes in marketing to promote South Dakota citizens to claim Unclaimed Property.00:33:22
Representative Hunhoff - question - will there be any additional funds needed for the State Treasurer to advertise and market through social media.00:34:42
Senator Greenfield - question - why has the State Treasurer's Office been more successful in obtaining and returning unclaimed property over the past five years and what caused this trend.00:34:51
Representative Post - question - what role does the State Treasurer play in veterinary student grants and does this apply to South Dakota students attending Iowa State and why is this in the State Treasurer's budget.00:41:32
Mr. Kyle Peterson, Finance Officer, Office of the State Treasurer responded.00:41:59
Representative Howard - question - what would happen to Unclaimed Property if one of our large corporations left the State of South Dakota.00:43:37
Senator White - question - would the State of South Dakota continue to manage Unclaimed Property previously deposited by a corporation that had decided to leave the state.00:44:35
Senator White - question - is the process to make claims dictated by policy or statute.00:45:57
Senator White - question - will the office improve technology or propose legislation next year to make it easier for citizens to make Unclaimed Property claims00:47:00
Senator Greenfield - question - why can't you look for Unclaimed Property by town or zip code00:48:28
Representative Koth - question - have you experienced any fraud and does the State Treasurer have Unclaimed Property Insurance 00:50:52
Representative Koth - question - what happens if an Unclaimed Property claim was returned to the wrong person and would this situation be a liability to the State of South Dakota00:53:00
Senator Greenfield - question - was there a transfer of .4 FTE from the State Treasurer's Office to the Unclaimed Property Division in interim that wasn't acted upon and what should the office do in the future and requested additional information00:54:51
Representative Post - question - what is the Other Fund Balance History - 8324 Unclaimed Property balance of ($15,783,884) referring to Page 11 Legislative Research Council Budget Brief00:57:40
State Auditor, Rich Sattgast, presented FY20 budget as recommended by the Governor. State Auditor Sattgast introduced staff, gave an overview what is the mission of the Office of the Auditor. Duties of the Auditor's office includes payroll, accounting, and auditing.01:00:30
Revenues and Statistics: State Auditor: Selected Statistics - Legislative Research Council Document - Legislative Research Council Budget Brief - Page 501:03:30
Office of the State Auditor - Source of Funding is 100% general fund dollars - Legislative Research Budget Brief - Page 101:07:15
State Auditor Sattgast stated FY20 State Auditor Budget request is $1,301,883 in general funds, $0 in federal fund expenditure authority, and $0 in other funds totaling $1,301,883 and includes 16.0 FTE. State Auditor Sattgast concurs with this budget that was recommended by the previous Governor.01:08:00
Senator Wiik commented he has already received his W-2 Form.01:11:15
Representative Koth - question - what was the reason for reversions made to general funds in prior years01:12:00
Senator Greenfield - question - the accounting process was removed from the State Auditor's Office and moved to Bureau of Finance and Management many years ago and should it be moved back to the State Auditor's Office01:12:40
Mr. Steve Barnett, Secretary of State, made the FY20 Budget request which includes $1,301,883 in general funds, $0 in federal fund expenditure authority, and $0 in other fund expenditure authority and includes 16.0 FTE. The FY20 Secretary of State budget is recommended by the Governor.01:17:48
Secretary of State, Mr. Steve Barnett, made staff introductions and gave an overview of his office.01:18:04
Office of the Secretary of State - Division of Elections, Division of Business Services, and Division of General Services - Page 201:18:35
Office of the Secretary of State - Division of Elections includes Campaign Finance Reports, Assist with Elections Process, Administration of Programs, and State Board of Elections - Page 301:18:40
Office of Secretary of State - Division of Elections (Continued) - Preparation of Election Manuals, Forms, Pamphlets, and Website, Election Operations, and Training and Workshops - Page 401:19:20
Secretary of State Barnett stated the State Board of Elections has recommended legislation through House Bills 1025, 1026, and 1027.01:19:22
Office of the Secretary of State - South Dakota Voter Registration - Page 501:20:35
Office of the Secretary of State - Revenue - Key Revenue Drivers - Domestic Corporations, Uniform Commercial Code, Foreign Corporations, and All Other Charts 01:20:44
Office of the Secretary of State - 2018 Primary Election Turnout and 2018 General Election Turnout - Page 601:21:30
Office of the Secretary of State - Division of Business Services - Uniform Commercial Code Filings, Fictitious Business Statement (DBA) Filings, Trademarks, Farm, Ranch, Home Name, Emblems Filings, Summons and Complaints, Non-Resident Motorists and Small Claims, Memorandums of Understanding, and Post-Secondary Education - Page 7 and Page 801:21:50
Office of the Secretary of State - Revenues - Key Revenue Drivers - FY14 - FY18 Chart- Domestic and Foreign Corporate Filings, Uniform Commercial Code, and All Other Filings - Page 901:22:37
Office of the Secretary of State - 5 Year Revenue Comparison - Total Revenue - FY14 to FY18 - Chart - Page 1001:23:40
Office of the Secretary of State - Division of General Services - Fee Generating Filings and Non-Fee Generating Filings - Page 1101:24:38
Office of the Secretary of State - Pistol Permits - Active Concealed Carry Weapon Permits - Total 107,129 - Page 1201:25:03
Office of the Secretary of State - Pistol Permits - Charts - 10-Year Permits Issued (All Permits Issued) and Calendar Year 2018 Monthly Permits Issued (Regular, Gold, & Enhanced) - Page 1301:27:00
Office of the Secretary of State - FY20 Governor's Recommended Budget hasn't changed from 2019 - Page 1401:27:32
Office of Secretary of State - Federal Funds HAVA (Help America Vote Act) and Other Fund Revenue Sources - Page 1501:28:01
Office of the Secretary of State - Supplemental and Special Appropriations - Total Vote Statewide Registration System Upgrade and Election Systems and Cybersecurity Upgrades - Page 1601:28:47
Representative Saba - question - what is the definition of domestic business filings, domestic and foreign business filings, and requested additional information01:32:58
Senator Sutton - question - would you explain how you monitor voter registration fraud 01:33:34
Representative Gross - question - what efforts can the Office of the Secretary of State make to improve efficiencies in areas such as online filing capabilities for business services01:34:20
Kea Warne, Director, Division of Election Services, responded the Office of the Secretary of State is outreaching to promote voter registration. This is a program started by former Secretary of State Krebs.01:35:20
Senator Sutton - question - how much voter registration fraud is found in the State of South Dakota01:36:04
Representative Karr - question - Secretary of State - (referring to the Legislative Research Council Budget Brief - Page 3) - was there a prior year base transfer in FY18 of $28,069 and requested additional information01:37:27
Representative Bartels - question - does the Office of the Secretary of State Election Division require Geographic Information System (GIS), and does the Office of the Secretary of State work with Bureau of Information and Telecommunications and does the state have to purchase separate licensing agreements and requested additional information01:38:26
Senator Greenfield - question - are you looking at statutes to streamline successful candidate conflict of interest forms01:39:58
Senator Greenfield - question - does the Office of the Secretary of State need the authority to enforce campaign finance filing violations01:43:13
Senator Greenfield - question - what is the procedure in state government when the DCI finds campaign filing or finance violations01:43:45
Senator Greenfield - question - could the conflict of interest and oath of office statements be streamlined01:44:43
Senator Greenfield - question - what is South Dakota doing to follow the Help American Vote Act and do we have any data how often electronic voting machines are being used01:46:40
Ms. Warne indicated the $3,000,000 Help American Vote Act grant would help 36 counties obtain voting machines prior to the Year 2020 national election. Every county is required to have one ballot marking device. These ballots marking devices help assist citizens with disabilities.01:48:30
Representative Howard - question - is it possible for someone to challenge a candidacy petition and what is the procedure to do so01:51:01
Representative Howard - question - how could you challenge someone's residency 01:53:26
Senator White - question - if someone wants to apply for an initiative do they do this through the Office of the Secretary of State and what is the process01:53:39
Senator Nesiba - question - how many South Dakota citizens are legally registered to vote and how many are not eligible and requested additional information01:53:55
Senator White - question - what is the procedure to file a statewide initiative and are there any statewide initiatives being filed at the Office of the Secretary of State01:56:22
Senator Maher - question - what is the source of $1,300,197 in FY18 referring to page 5 of the Legislative Research Council Budget Brief and do these funds have to be matched with general funds01:57:55
Senator Maher - question - when does the federal grant to Help American Vote Act (HAVA) end and is the State of South Dakota required to continue to follow HAVA after federal funding is depleted01:59:55
Representative Hunhoff - question - will there be a reduction of FTE in the Office of the Secretary of State be permanent02:01:10
Representative Post - question - why was there an increase of approximately $1,000,000 under Secretary of State Operating Expenses in Grants and Subsidies from fiscal years 2017 to 2018. In FY17 Grants and Subsidies Budget Actual was $362,171 and in FY18 Grants and Subsidies Actual was $1,650,190 (referring to the Legislative Research Council Budget Brief) - Page 5 02:02:51
Jason Lutz, Deputy, Secretary of State, responded the previous administration listed grants that were held for county use. Prior to that time these funds weren't listed in the budget. 02:04:00
Senator Wiik requested additional information about the Secretary of State - Grants and Subsidies Actual Expenses change from FY17 to FY18.02:06:00
Announcements 02:07:27
Adjourn-White/Nesiba02:08:18

Click message to listen