Button in tournament play

[Zybomb]

While in a hand the SB winds up busting out of a tournament. The next hand what happens to the button. Does it go to the BB so simply gets to skip his SB and the BB gets to skip his BB and post just the SB? Or does it remain on the button from last hand and thus not effect the blinds. I always had done it the first way, but I had some people fairly confident that it was done the 2nd way. Does it maybe depend on the tournament? (I know online it just proceeds)