40ob

___________________ moved that SB 40 be amended as follows:

    

     Delete previously adopted amendment 40oa thus returning the bill to its printed form.

     On page 2, after line 18 of the printed bill, insert:

"      Section 2. That § 4-5-26 be amended to read as follows:

     4-5-26.   Money made available for investment may be invested in the following classes of securities and investments and, except as provided by §   3-12-117, chapter 3-13, the South Dakota Cement Plant retirement fund, and the permanent trust fund containing the net proceeds from the sale of state cement enterprises , the health care trust fund as provided in S.D. Const., Art. XII, § 5, and the education enhancement trust fund as provided in S.D., Art. XII, § 6 , not otherwise:

             (1)      Direct and indirect obligations of the United States government;

             (2)      Agencies and instrumentalities of the United States government;

             (3)      Direct obligations of the State of South Dakota and any of its political subdivisions;

             (4)      Obligations consisting of notes, bonds, debentures, and certificates which are direct obligations of a solvent corporation or trust existing under the laws of the United States or any state thereof, if such investments are rated in the four highest classifications established by at least two standard rating services; or

             (5)      Savings accounts, share accounts, certificates of deposit of banks, savings and loan associations, building and loan associations, and bankers' acceptances;

             (6)      In addition to the investments authorized by subdivisions (1) to (5) of this section, inclusive, the investment council may also allocate a sum certain of state public funds for investment in the accounts and certificates of South Dakota banks and associations. This sum shall initially be offered to South Dakota banks and associations, and if not initially fully subscribed, the investment officer shall immediately reoffer the unsubscribed sum to other qualified public depositories defined by subdivision 4-6A-1(7).     

     Section 3. Pursuant to S.D. Const., Art. XII, §  5, the state investment officer shall determine the market value of the health care trust fund as of June thirtieth each year less the investment expenses transferred pursuant to §  4-5-30. As soon as practicable after July first the state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2006, a four year average market value shall be used to calculate the distribution. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the health care trust fund to the state general fund.

    Section 4. Pursuant to S.D. Const., Art. XII, §  6, the state investment officer shall determine the

market value of the education enhancement trust fund as of June thirtieth each year less the investment expenses transferred pursuant to §  4-5-30. As soon as practicable after July first the state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2006, a four year average market value shall be used to calculate the distribution. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the education enhancement trust fund to the state general fund. ".