Gov. Dennis Daugaard filed a bill Thursday that would respond to a perceived lack of state control over outside groups that administer state grants and programs like those at the center of the state's EB-5 and Gear Up scandals.
The bill, which was put forth on Daugaard's behalf by the Senate Government Operations and Audit Committee Thursday, would create the State Board of Internal Control charged with overseeing state sub-grantees and ensuring that they properly administer federal dollars.
Some supported the bill early on saying it constituted a good first step in accountability while others said it didn't go far enough to ensure the state wouldn't see another scandal.
Under the bill, the state would also establish a new set of guidelines for organizations that administer state and local grants. The organizations would be required to have in place conflict of interest policies and internal control measures and enforce them, properly file and display forms indicating whether a group is income tax exempt and if applicable, make audits available online. If enacted, the guidelines would take effect on July 1.
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