SB 225

 26.852.9  101st Legislative Session  225
                                         2026 South Dakota Legislature
                                                 Senate Bill 225
 Introduced by: Senator Lapka
1 An Act to apportion interest earnings from the unclaimed property trust fund to
2school districts.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
4 Section 1. That § 13-13-1 be AMENDED:
513-13-1. The commissioner of school and public lands, after any adjustments that
6     have been made pursuant to § 5-10-18.3, shall apportion the school funds as follows:the:
7     (1)      The commissioner shall ascertain from the division of education the total number
8of resident pupils students in average daily membership, as defined in § 13-13-
91.1, in each school district and the total number of pupils students in average daily
10membership in all school districts, and on that basis of the school population, the;
11and
12     (2)      The commissioner shall apportion to each school district, pro rata, such share, as
13its population of resident pupils students in average daily membership in the school
14district bears to the total number of pupils students in average daily membership
15in all school districts.
16     The funds to be apportioned include funds derived from the lease of school lands, the
17     lease of public lands not apportioned to any educational, penal, or charitable institution,
18     the interest, dividends, and other income on invested funds derived from the sale of school
19     lands and public lands not apportioned to any such institution of these institutions, and
20     the interest, dividends, and other income on invested funds derived from the five percent
21     paid by the United States on the sale of public lands within the state, and the distribution
22     amount from the unclaimed property trust fund, pursuant to § 43-41B-24.5.
23 Section 2. That § 43-41B-24.4 be AMENDED:
                                                                                 Underscores indicate new language.
                                                                               Overstrikes indicate deleted language.
 26.852.9  2  225
143-41B-24.4. There is created in the state treasury the trust fund for unclaimed
2    property. The fund consists of any net receipts from unclaimed property that exceed the
3    maximum deposit requirements of § 43-41B-24.3.
4The state treasurer shall administer the fund. The purpose of the fund is to provide
5    for the return of unclaimed property, provide for the payment of audit expenses, and
6    deposit into the general fund the distribution amount, in accordance with § 43-41B-24.5.
7    Distribution amounts from the fund must be budgeted through the general appropriation
8    bill, as provided for in § 43-41B-24.5, or expended by special appropriation. Moneys
9    comprising the principal amount in the trust fund for unclaimed property may not be
10    appropriated by the general appropriation bill or by special appropriation.
11 Section 3. That § 43-41B-24.5 be AMENDED:
1243-41B-24.5. Beginning in fiscal year 2026 and each fiscal year thereafter, the
13    state treasurer shall, after paying from the unclaimed property operating fund all claims
14    and any administrative costs associated with the sale of unclaimed property, deposit into
15    the general fund the net receipts from unclaimed property, up to the general fund
16    contribution limit, as established in § 43-41B-24.3.
17Any net receipts from unclaimed property that exceed the general fund contribution
18    limit as defined in § 43-41B-24.3, must be deposited into the trust fund for unclaimed
19    property.
20The state investment officer shall calculate an amount equal to four percent of the
21    market value of the trust fund for unclaimed property, without invading principal, as
22    eligible for distribution to the general fund commissioner of school and public lands for
23    apportionment pursuant to § 13-13-1. Until fiscal year 2031, the distribution must be
24    based on the market value as of each December thirty-first, beginning with the market
25    value as of December 31, 2025. Beginning with the distribution in fiscal year 2031, the
26    market value must be determined by adding the market value of the trust fund at the end
27    of the sixteen most recent calendar quarters as of December thirty-first, and dividing the
28    sum by sixteen. Upon notice of the amount by the state investment officer, the state
29    treasurer shall transfer the distribution amount from the trust fund to the general fund
30    commissioner of school and public lands, as soon as practicable after July first of the next
31    fiscal year.
                                                                              Underscores indicate new language.
                                                                            Overstrikes indicate deleted language.