HB 1035 — modify provisions related to the licensure of public accountants.
Last action — Signed by the Governor on 2026-03-02 H.J. 466
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 13, 2026. Enacted.
Signed by Governor Larry Rhoden (Republican) on March 02, 2026.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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17 sponsors
17 primary, 0 co-sponsors signed on.
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Bipartisan support
Sponsored across 2 parties (13 R · 4 D) — cross-party backing.
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Cleared a recorded vote
Passed 3 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
276 added · 314 removedPlain-language change summary
The bill HB 1035 has been updated to clarify terms used in public accounting licensure in South Dakota. Notably, the definitions have been streamlined for clarity, with phrases like "entity" removed from the definition of "Client" and extraneous language in "Compilation" simplified. These changes help ensure that the language is easier to understand, which can make it more accessible for both accountants and clients involved in these services. Ultimately, this matters because clearer definitions can lead to better compliance and understanding of the law.
26.365.2426.365.25 101st Legislative Session 1035 South Dakota Legislature House Bill 1035 IntroducedENROLLED by:A N ACT ENTITLED An Act to modify provisions related to the licensure of public accountants.
RepresentativeB WeisgramE AnIT ActENACTED toBY modifyTHE provisionsL relatedEGISLATURE toOF theTHE licensureS ofTATE publicOF accountants.S OUTH D AKOTA :
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH DAKOTA :
(1) "Board," the South Dakota Board of AccountancyAccountancy; established pursuant to this chapter or its predecessor;
(2) "Certificate," a certificate as a certified public accountant certificate issued pursuant to this chapter or corresponding provisions of prior law, or a corresponding certificate as certified public accountant certificate issued, after examination, under the law of any other state;
(3) "Client," a person or entity that agrees with a licensee to receive any a professional service, other than an employer-employee relationship;
(4) "CPA firm" and "PA firm," a sole proprietorship, a corporation, a partnership, or any other form of organization permitted by law, issued a permit under this chapter;
(5) "Compilation," providing a service to be performed in accordance with Statements on Standards for Accounting and Review ServicesServices, (SSARS) that is presenting, which presents in the form of financial statements,statements and information that is the representation of management (owners) without undertaking to and does not express any assurance on the statements;
Overstrikes(9) indicate"License," deleteda language.certificate issued pursuant to this chapter, a permit issued pursuant to this chapter, or a registration pursuant to this chapter;
26.365.24(10) 2"Licensee," 1035the (9)holder "License,"of a certificate issuedor pursuant to this chapter, a permit issued pursuant to this chapter, or a registration pursuant to this chapter;
or in each case, a certificate, license, or permit issued under corresponding provisions of prior law;
(10) "Licensee," the holder of a certificate or a permit issued pursuant to this chapter or of a license issued under prior law, or of a permit issued pursuant to this chapter;
or in each case, a certificate, license, or permit issued under corresponding provisions of prior law;
(12A)(13)26.365.25 "Owner,"2 a1035 licensee(13) or"Owner," nonlicensee as a proprietor, partner, officer, shareholder, or member with financial rights in the a CPA firm or PA firm;
(13)(14)(14) "Peer review," a study, appraisal, or review of one or more aspects of the professional work of a certificate holder or CPA firmfirm, that, which performs attest or compilation services, by a qualified person or persons, who hold certificates, and who are not affiliated with the certificate holder or CPA firm being reviewed;
(14)(15)(15) "Permit," a permit to practice public accountancy issued to a firm pursuant to this chapter or corresponding provisions of prior law or under corresponding provisions of the laws of other states;
(15)(16)(16) "Practice privilege," the privilege for a person to practice public accountancy;
(16)(17)(17) "Principal place of business," the office location designated by the a licensee for purposes of substantial equivalency and reciprocity the purpose of practice privilege;
(17)(18)(18) "Professional," arising out of, or related to, the specialized knowledge or skills associated with CPAs or Pas certified public accountants or public accountants;
(18)(19)(19) "Public accountant," a person holding who holds a public accountant license issued pursuant to provisions of prior law;
and (19)(20)(20) "State," any state of the United States, the District of Columbia, Puerto Rico, the U.S.
Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands;Islands.
(20) "Substantial equivalency," a determination by the board or its designee that the education, examination, and experience requirements contained in the statutes and administrative rules of another jurisdiction are comparable to, or exceed the education, examination, and experience requirements contained in this chapter or that an individual CPA's education, examination, and experience qualifications are comparable to or exceed the education, examination, and experience requirements Overstrikes indicate deleted language.
26.365.24 3 1035 contained in this chapter.
In ascertaining substantial equivalency, the board or its designee shall take into account the qualifications without regard to the sequence in which experience, education, or examination requirements were attained.
The board may shall promulgate rules, in accordance with chapter 1-1-26, 26, governing the board's administration and enforcement of this chapter and the conduct of licensees in the following matters:
HB1035 ENROLLED 26.365.25 3 1035 (c) Responsibilities to the public;
Overstrikes(10) indicateRules deletedspecifying language.peer review administrative fees, not to exceed one hundred twenty-five dollars, plus seventy-five dollars for a peer review form filed late;
26.365.24 4 1035 (10) Rules specifying peer review administrative fees, not to exceed one hundred twenty-five dollars, plus seventy-five dollars for a peer review form filed late;
(13) Rules specifying the procedures and fees, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state, for initial issuance or renewal of a firm permit.
and (c) A firm permit, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state.
HB1035 ENROLLED 26.365.25 4 1035 (16) Rules specifying procedures and fees for the late renewal of certificates, not to exceed one hundred dollars, and firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state.
(a) Late filingissuance of acertificates, certificate based on substantial equivalency, not to exceed one hundred dollars;
and (b) Late issuancefiling of certificates,firm permits, not to exceed one hundred dollars;dollars for each owner, plus one hundred dollars for a firm practicing public accountancy in this state.
and Overstrikes indicate deleted language.
26.365.24 5 1035 (c)(b) Late filing of firm permits, not to exceed one hundred dollars for each owner, plus one hundred dollars for the a firm practicing public accountancy in this state.
and (21) Rules defining active and inactive status of both certificate and public accountant license holders who are not practicing public accountancy;accountancy.
and (22) Rules specifying procedures and fees, not to exceed one hundred dollars, on substantial equivalency.
The education requirement for a certificate, which shall be met before one hundred days after an applicant sits for the examination prescribed in this chapter, is at least one hundred fifty semester hours of college education, including graduation from an accredited college or university with a baccalaureate or a graduate degree in accounting, or the satisfactory completion of a course of study which the board has determined to be substantially the equivalent of an accounting degree, including related courses in other areas of business administration.
Such courses of study may be in a college or university, recognized by the board.
Show all 91 changed lines (51 more)
An applicant for initiala issuancecertificate, ofwho holds a certificategraduate underdegree thisthat chaptersatisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall showprovide to the board documentation that the applicant has acquiredcompleted one year of experience.experience in accounting.
ThisAn experience shall include providingAn applicant for a certificate, who holds a graduatebachelor's degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completedcompleted: one year of experience in accounting.
OverstrikesHB1035 indicateENROLLED deleted26.365.25 language.5 1035 (1) One year of experience in accounting and thirty semester credit hours of education, in addition to the number of hours required to obtain the applicant's bachelor's degree, at an accredited institution of higher education;
26.365.24 6 1035 An applicant for a certificate, who holds a bachelor's degree that satisfies the requirements to sit for an examination, pursuant to § 36-20B-15, shall provide to the board documentation that the applicant has completed:
(1) One year of experience in accounting and thirty semester credit hours of education, in addition to the number of hours required to obtain the applicant's bachelor's degree, at an accredited institution of higher education;
For the purposes of this section, experience in accounting includes any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills, all of which were verified by a licensee,licensee meeting and meet requirements prescribed by the board, by rule promulgated pursuant to chapter 1-1-26. 26.
Acceptable experience may be gained completed through employment in government, industry, academia, or public practice.
Any person holding who holds a valid certificate issued by this state prior to July 1, 2002, is deemed to have met the requirements of this section.
An individual who passes the examinationexamination, as a South Dakota candidate, and who satisfies the requirements set forth in § 36-20B-21, may apply for a certificate in accordance with requirements and by such date established by rule, the board, in rule promulgated pursuant to chapter 1-26.
The board shall grant or renew a certificate to any person who makes application and demonstrates qualifications that are in accordance with the provisions of this chapter or eligibility under the substantial equivalency standard provided in this chapter.
The board shall must issue a certificate to an applicant who does not qualify for reciprocity under the substantial equivalency standard provided in this chapter but who holds a certificate, license, or permit issued by another statestate, upon a showing, if the applicant provides documentation that:
(1) The applicant has passed the examination required for issuance of the applicant's certificate certification in the applicant's state, with grades that would have been passing grades at the time in this state;
(2) The applicant had has at least four years of experience of the type described in this chapter, or the applicant meets equivalent requirements prescribed by the board, Overstrikesby indicaterule deletedpromulgated language.pursuant to chapter 1-26, after passing the examination, upon which the applicant's certificate was based, and within the ten years immediately preceding the application;
26.365.24and 7(3) 1035The byapplicant rulehas promulgatedfulfilled pursuantthe torequirements chapterof 1-26,continuing afterprofessional passingeducation thethat examination,would uponhave whichbeen applicable under subdivision (2), if the applicant's certificatecertificate, wasHB1035 based,ENROLLED and26.365.25 within6 the1035 tenlicense, or permit was issued more than four years immediatelyprior precedingto thesubmitting application;an application for an initial certificate under this chapter.
and (3) The applicant has fulfilled the requirements of continuing professional education that would have been applicable under subdivision (2), if the applicant's certificate, license, or permit was issued more than four years prior to the submitting an application for issuance of an initial certificate under this chapter.
Before establishing a principal place of business in this state, a certificate holder a person who is licensed by another state shall request the issuance of must request a certificate from the board.
The board shall issue a certificate to any applicant who obtains, from the board of the other state, verification that such applicant's qualifications are substantially equivalent that the applicant's qualifications are comparable to the CPA licensure requirements of this chapter, as determined by the board.
The board shall must issue a certificate to a holder of a substantially equivalent a foreign designation that the board determines to be comparable to a certificate issued by this state, ifif: the following conditions are satisfied:
(1) The foreign authority which that granted the designation makes similar provision to allow a person who holds a valid certificate issued by this state to obtain such the foreign authority's comparable designation;
(3) The applicant received the designation, based on educational and examination standards substantially equivalent that the board determines to be comparable to those in effect in this state, at the time the foreign designation was granted, and the designation was issued upon the basis of educational, examination, and experience requirements established by the foreign authority or by law;
(4) The applicant has passed a qualifying examination, with the examination grading and passing grades being which uses a grading system that is uniform with those Overstrikesapplicable indicatein deletedother language.states, and an examination approved by the board, on the law, rules, and code of ethical conduct in effect in this state;
26.365.24(5) 8The 1035applicant applicablereceived inthe otherdesignation states,based andon aneducational and examination acceptablestandards tothat approved by the board,board ondetermines theto law,be rules,comparable andto codethose of ethical conduct in effect in this state;state at the time the foreign designation was granted;
and (5) The applicant received the designation based on educational and examination standards substantially equivalent that the board determines to be comparable to those in effect in this state at the time the foreign designation was granted;completed (6) The applicant has:
(a) Completed an experience requirement substantially equivalent that the board determines to be comparable to the requirement provided in this chapter, in the jurisdiction which that granted the foreign designationdesignation; or has completed;
HB1035 ENROLLED 26.365.25 7 1035 (b) Completed four years of professional experience in this state;
or meets (c) Met equivalent requirements prescribed by the board, by rule promulgated pursuant to chapter 1-26, within the ten years immediately preceding the application;
An applicant under this section shall list in the application all jurisdictions,jurisdictions foreign and domestic, in which the applicant has applied for, or holds, a designation to practice public accountancy,accountancy. and each.
The board has the sole authority to interpret the application of the provisions of this section.
An individual whose principal place of business is not in this state and who holds a valid certificate or license as a certified public accountant from any statestate, which the board has verified to be in substantial equivalence with the CPA licensure requirements of this chapter is presumed to have qualifications substantially equivalent to requirements of this state and shall have, has all the privileges of certificate holders and licensees of a licensee under this chapter, without the need to obtain a certificate or permit under this chapter, provided that the individual has passed the uniform certified public accountant examination, and has obtained:
Overstrikes(1) indicateA deletedbachelor's language.degree in accounting, or in a course of study that the board has determined to be comparable to an accounting degree, and has completed:
26.365.24 9 1035 (1) A bachelor's degree in accounting, or in a course of study that the board has determined to be comparable to an accounting degree, and has completed:
Notwithstanding any other provision of law, an individual who offers or renders professional services under this section, whether in person, or by mail, telephone, or electronic means, shall must be granted practice privileges in this state, and no notice, fee, or other submission is required of the individual.
However,The theThe individual shall be is subject to the requirements of § 36-20B-68.
HB1035 ENROLLED 26.365.25 8 1035 Section 10.
AnyAn individual whoseshall principalcontinue place of business is not in this state who holds a valid certificate or license as a certified public accountant from any state which the board has not verified to behold inpractice substantialprivileges, equivalence with the CPA licensure requirements of this chapter is presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of certificate holders and licensees of this state without theneeding need to obtain a certificatelicense or permit under this chapterchapter, if the CPAindividual: qualifications of the individual are substantially equivalent to the CPA licensure requirements of this chapter.
Notwithstanding any other provision of law, an individual who offers or renders professional services, whether in person, or by mail, telephone, or electronic means, under this section shall be granted practice privileges in this state, and no notice, fee, or other submission is required of the individual.
However, the individual shall be subject to the requirements of § 36-20B-68 An individual shall continue to hold practice privileges, without needing to obtain a license under this chapter, if the individual:
and Overstrikes(3) indicateOn deletedor language.before December 31, 2024, exercised practice privileges in this state under § 36-20B-66, as it existed on December 31, 2024.
26.365.24HB1035 10ENROLLED 103526.365.25 (3)9 On1035 orAn beforeAct Decemberto 31,modify 2024,provisions exercisedrelated practiceto privilegesthe inlicensure thisof statepublic underaccountants. § 36-20B-66, as it existed on December 31, 2024.
UnderscoresReceived indicateat newthis language.Executive Office I certify that the attached Act originated in this _____ day of _____________, the:
Overstrikesat indicate____________M. deleted language.
House as Bill No.
1035 By Chief Clerk of the House for the Governor The attached Act is hereby approved this ________ day of Speaker of the House ______________, A.D., 2026 Attest:
Governor Chief Clerk of the House STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State President of the Senate Filed ____________, 2026 Attest:
at _________ o'clock __M.
Secretary of the Senate Secretary of State House Bill No.
1035 By File No.
____ Asst.
Secretary of State Chapter No.
______ HB1035 ENROLLED
Show all 91 changed rows (51 more)
Action History
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Signed by the Governor on 2026-03-02 H.J. 466
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Delivered to the Governor on 2026-02-23 H.J. 400
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Signed by the President S.J. 346
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Signed by the Speaker H.J. 373
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Senate Do Pass , Passed, YEAS 34, NAYS 0 S.J. 296
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Certified uncontested, placed on consent , Passed,
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Commerce and Energy Do Pass , Passed, YEAS 7, NAYS 0
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Scheduled for hearing
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First read in Senate and referred to Senate Commerce and Energy S.J. 121
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House of Representatives Do Pass , Passed, YEAS 67, NAYS 0 H.J. 137
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House of Representatives Deferred to another day , Passed, H.J. 128
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House of Representatives Deferred to another day , Passed, H.J. 115
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Commerce and Energy Do Pass , Passed, YEAS 13, NAYS 0 H.J. 3
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Scheduled for hearing
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First read in House and referred to House Commerce and Energy H.J. 11
Sponsors
- Glen Vilhauer · Primary
- Nicole Uhre-Balk · Primary
- Drew Peterson · Primary
- Carl Perry · Primary
- Erik Muckey · Primary
- Scott Moore · Primary
- Curt Massie · Primary
- Amber Hulse · Primary
- Erin Healy · Primary
- Tim Goodwin · Primary
- Mary Fitzgerald · Primary
- Eric Emery · Primary
- Steve Duffy · Primary
- Jessica Bahmuller · Primary
- Amber Arlint · Primary
- Mike Weisgram · Primary
- Kyle Schoenfish · Primary
Sponsorship breakdown
Export CSV (upgrade) →17 sponsors · 0 co-sponsors · 88 not signed on
Sponsors (17)
- Glen Vilhauer Republican
- Nicole Uhre-Balk Democratic
- Drew Peterson Republican
- Carl Perry Republican
- Erik Muckey Democratic
- Scott Moore Republican
- Curt Massie Republican
- Amber Hulse Republican
- Erin Healy Democratic
- Tim Goodwin Republican
- Mary Fitzgerald Republican
- Eric Emery Democratic
- Steve Duffy Republican
- Jessica Bahmuller Republican
- Amber Arlint Republican
- Mike Weisgram Republican
- Kyle Schoenfish Republican
Co-sponsors (0)
None.
Not signed on (88)
88 members have not signed on to this bill.
Show all 88 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 6 | 0 | 0 | 2 |
| Democratic | 1 | 0 | 0 | 0 |
| Total | 7 | 0 | 0 | 2 |
| % of votes cast | 78% | 0% | 0% | 22% |
How each member voted (9)
| Member | Party | Vote |
|---|---|---|
| Liz Larson | Democratic | Yea |
| Carl Perry | Republican | Yea |
| Casey Crabtree | Republican | Yea |
| Chris Karr | Republican | Not Voting |
| Jim Mehlhaff | Republican | Yea |
| Joy Hohn | Republican | Yea |
| Randy Deibert | Republican | Not Voting |
| Steve Kolbeck | Republican | Yea |
| Sue Peterson | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 60 | 0 | 0 | 3 |
| Democratic | 5 | 0 | 0 | 0 |
| Unaffiliated | 2 | 0 | 0 | 0 |
| Total | 67 | 0 | 0 | 3 |
| % of votes cast | 96% | 0% | 0% | 4% |
How each member voted (70)
| Member | Party | Vote |
|---|---|---|
| Kolbeck (Jack) | — | Yea |
| Van Diepen | — | Yea |
| Eric Emery | Democratic | Yea |
| Erik Muckey | Democratic | Yea |
| Erin Healy | Democratic | Yea |
| Kadyn Wittman | Democratic | Yea |
| Nicole Uhre-Balk | Democratic | Yea |
| Aaron Aylward | Republican | Yea |
| Al Novstrup | Republican | Yea |
| Amber Arlint | Republican | Yea |
| Bethany Soye | Republican | Yea |
| Bobbi Andera | Republican | Yea |
| Brandei Schaefbauer | Republican | Yea |
| Brian Mulder | Republican | Yea |
| Chris Kassin | Republican | Yea |
| Curt Massie | Republican | Yea |
| David Kull | Republican | Yea |
| Drew Peterson | Republican | Yea |
| Dylan Jordan | Republican | Yea |
| Greg Jamison | Republican | Yea |
| Heather Baxter | Republican | Yea |
| Jana Hunt | Republican | Yea |
| Jeff Bathke | Republican | Not Voting |
| Jessica Bahmuller | Republican | Yea |
| Jim Halverson | Republican | Yea |
| John Hughes | Republican | Yea |
| John Shubeck | Republican | Yea |
| John Sjaarda | Republican | Yea |
| Jon Hansen | Republican | Yea |
| Josephine Garcia | Republican | Yea |
| Julie Auch | Republican | Yea |
| Kaley Nolz | Republican | Yea |
| Karla Lems | Republican | Yea |
| Kathy Rice | Republican | Yea |
| Kent Roe | Republican | Yea |
| Keri Weems | Republican | Yea |
| Lana Greenfield | Republican | Yea |
| Leslie Heinemann | Republican | Yea |
| Liz May | Republican | Not Voting |
| Logan Manhart | Republican | Yea |
| Marty Overweg | Republican | Yea |
| Mary Fitzgerald | Republican | Yea |
| Matt Roby | Republican | Yea |
| Mellissa Heermann | Republican | Yea |
| Mike Derby | Republican | Yea |
| Mike Stevens | Republican | Yea |
| Mike Weisgram | Republican | Yea |
| Nick Fosness | Republican | Yea |
| Peri Pourier | Republican | Yea |
| Phil Jensen | Republican | Yea |
| Rebecca Reimer | Republican | Yea |
| Roger DeGroot | Republican | Yea |
| Scott Moore | Republican | Yea |
| Scott Odenbach | Republican | Yea |
| Spencer Gosch | Republican | Yea |
| Steve Duffy | Republican | Yea |
| Taylor Rehfeldt | Republican | Yea |
| Terri Jorgenson | Republican | Yea |
| Tesa Schwans | Republican | Yea |
| Tim Czmowski | Republican | Not Voting |
| Tim Goodwin | Republican | Yea |
| Tim Reisch | Republican | Yea |
| Tim Walburg | Republican | Yea |
| Tina Mulally | Republican | Yea |
| Tony Kayser | Republican | Yea |
| Tony Randolph | Republican | Yea |
| Travis Ismay | Republican | Yea |
| Trish Ladner | Republican | Yea |
| Will Mortenson | Republican | Yea |
| William Shorma | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 12 | 0 | 0 | 0 |
| Democratic | 1 | 0 | 0 | 0 |
| Total | 13 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (13)
| Member | Party | Vote |
|---|---|---|
| Nicole Uhre-Balk | Democratic | Yea |
| Aaron Aylward | Republican | Yea |
| Drew Peterson | Republican | Yea |
| Jessica Bahmuller | Republican | Yea |
| Kaley Nolz | Republican | Yea |
| Karla Lems | Republican | Yea |
| Lana Greenfield | Republican | Yea |
| Mike Weisgram | Republican | Yea |
| Steve Duffy | Republican | Yea |
| Tesa Schwans | Republican | Yea |
| Tina Mulally | Republican | Yea |
| Tony Kayser | Republican | Yea |
| William Shorma | Republican | Yea |
Subjects
Frequently asked questions
- Who sponsors HB 1035?
- HB 1035 is sponsored by Glen Vilhauer (Republican), Nicole Uhre-Balk (Democratic), Drew Peterson (Republican), Carl Perry (Republican), Erik Muckey (Democratic), Scott Moore (Republican), Curt Massie (Republican), Amber Hulse (Republican), Erin Healy (Democratic), Tim Goodwin (Republican), Mary Fitzgerald (Republican), Eric Emery (Democratic), Steve Duffy (Republican), Jessica Bahmuller (Republican), Amber Arlint (Republican), Mike Weisgram (Republican), and Kyle Schoenfish (Republican).
- What is the current status of HB 1035?
- This bill has been enacted into law. Introduced January 13, 2026. Enacted.
- Where can I track HB 1035?
- Track HB 1035 free on One Click Politics — get push/email alerts when it moves.
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