This bill mandates that starting in fiscal year 2026, and every three years thereafter, specific departments and boards in South Dakota must submit a cost model report to the Legislature. The departments and boards required to provide these reports include the Board of Regents, the South Dakota Board of Technical Education, the Department of Education, the Department of Corrections, the Department of Human Services, the Department of Social Services, and the Department of Veterans Affairs. Each report must detail the costs associated with the programs and institutions under their control, including fixed and variable costs, staffing levels, the number of individuals served, and revenue sources.

Additionally, the bill defines a "cost model report" as a comprehensive funding model that outlines the financial aspects of service delivery over the past five fiscal years. It also allows both the joint committee on appropriations and a special committee to standardize these reports. This initiative aims to enhance transparency and accountability in the financial management of state-funded programs and institutions.