An Act to revise fiscal note requirements for initiative and initiated amendments.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 12-13-25 be AMENDED.

12-13-25. Review and comment--Legislative Research Council--Contents.

The sponsors of each initiated measure or initiated amendment to the Constitution shall submit a copy of each version of the initiated measure or initiated amendment to the Constitution to the director of the Legislative Research Council for review and comment not more than six months before it may be circulated for signatures under § 2-1-1.1 or 2-1-1.2. The director shall review each version of the submitted initiated measure or initiated amendment to the Constitution to determine if the requirements of § 12-13-24 are satisfied and if the initiated measure or initiated amendment to the Constitution may have any impact on revenues, expenditures, or fiscal liability of the state or its agencies and subdivisions under § 2-9-30. Unless as otherwise provided under § 12-13-25.2, not more than fifteen workdays following receipt of an initiated measure or initiated amendment to the Constitution, the director shall provide written comments on the initiated measure or initiated amendment to the Constitution to the sponsors of the initiated measure or initiated amendment, the attorney general, and the secretary of state for the purpose of assisting the sponsors in complying with § 12-13-24. The director's written comments under this section shall include assistance regarding the substantive content of the initiated measure or initiated amendment in order to minimize any conflict with existing law and to ensure the measure's or amendment's effective administration. The sponsors may, but are not required to, amend the initiated measure or initiated amendment to the Constitution to comply with the director's comments.

Section 2. That § 2-9-30 be AMENDED.

2-9-30. Determination of fiscal impact and preparation of fiscal note for initiated measure or initiated constitutional amendment.

If the director of the Legislative Research Council determines in the review and comment under § 12-13-25 that an initiated measure or initiated amendment to the Constitution may have an impact on revenues, expenditures, or fiscal liability of the state or its agencies and subdivisions, the director shall notify the petition sponsor. If the director of the Legislative Research Council determines that an initiated measure or initiated amendment to the Constitution in final form under § 12-13-25.1 may have an impact on revenues, expenditures, or fiscal liability of the state or its agencies and subdivisions, the director shall prepare a fiscal note. The fiscal note shall include an estimate of the impact on revenues, expenditures, or fiscal liability of the state or its agencies and subdivisions for the first five fiscal years after the enactment, by the provisions of the proposed initiated measure or initiated amendment to the Constitution. The fiscal note expenditure estimate shall also include any impact to the prison or county jail population. The fiscal note shall state if the initiated measure or initiated amendment imposes or increases a tax or fee. The fiscal note may not exceed fifty words. The director shall file the fiscal note with the secretary of state and shall provide a copy to the sponsors not more than sixty days following receipt of the initiated measure or initiated amendment in final form pursuant to § 12-13-25.1.

Section 3. That § 12-13-26 be AMENDED.

12-13-26. Unreviewed initiatives or initiated amendments unacceptable.

The secretary of state may not accept any initiative or initiated amendment to the Constitution unless such initiative or initiated amendment to the Constitution has been submitted to the director of the Legislative Research Council and the director has reviewed and commented on such initiative or initiated amendment to the Constitution and produced a fiscal note to the secretary of state pursuant to § 2-9-30, where required, and unless the attorney general has filed the title and explanation of the initiative or initiated amendment to the Constitution with the secretary of state.

Section 4. That a NEW SECTION be added:

12-13-26.1. Certification of fiscal note.

When determining the vote threshold required for passage, the secretary of state shall certify whether, based on the secretary's review of the fiscal note produced pursuant to §§ 2-9-30 and 12-13-26, if the initiated constitutional amendment or measure will raise a tax or fee, or impose an obligation on the state to expend ten million dollars or more for any single fiscal year in the first five years of enactment.