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SB 104 define the status of principal in the education...
State of South Dakota  
EIGHTY-SECOND SESSION
LEGISLATIVE ASSEMBLY,  2007
 

277N0577  
SENATE BILL   NO.     104  

Introduced by:     Senators Knudson, Abdallah, Albers, Dempster, Duenwald, Gant, Garnos, Gray, Hansen (Tom), Hauge, Hunhoff, Lintz, McCracken, McNenny, Olson (Ed), and Smidt (Orville) and Representatives Rhoden, Boomgarden, Brunner, Buckingham, Carson, Cutler, Davis, Deadrick, DeVries, Dreyer, Dykstra, Faehn, Gilson, Hackl, Hanks, Haverly, Heineman, Hills, Howie, Hunt, Jerke, Juhnke, Kirkeby, Koistinen, Krebs, Lust, McLaughlin, Nelson, Noem, Novstrup (Al), Novstrup (David), Olson (Betty), Olson (Russell), Olson (Ryan), Pederson (Gordon), Peters, Pitts, Putnam, Rausch, Rave, Rounds, Steele, Tidemann, Turbiville, Van Etten, Vanneman, Vehle, Weems, Wick, and Willadsen  


         FOR AN ACT ENTITLED, An Act to  define the status of principal in the education enhancement trust fund and the health care trust fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That chapter 4-5 be amended by adding thereto a NEW SECTION to read as follows:
     No moneys to be deposited in the education enhancement trust fund which accrued to the fund pursuant to §  10-50-52 may be deemed as principal unless the Legislature has specifically designated such transfers to be principal. The Commissioner of the Bureau of Finance and Management may transfer such money to the state general fund for education enhancement programs as provided by law.
     Section  2.  That § 4-5-29.2 be amended to read as follows:
     4-5-29.2.   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 December 31, 2003, and each calendar year thereafter less the investment expenses transferred pursuant to § 4-5-30. 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 except those received pursuant to §  10- 50-52 unless so designated by the Legislature . Beginning with the distribution in fiscal year 2008, the market value shall be determined by adding the market value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. 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 as soon as practicable after July first of the next fiscal year.
     Section  3.  That chapter 4-8 be amended by adding thereto a NEW SECTION to read as follows:
     No moneys to be deposited in the health care trust fund which accrued to the fund pursuant to §  10-50-52 may be deemed as principal unless the Legislature has specifically designated such transfers to be principal. The Commissioner of the Bureau of Finance and Management may transfer such money to the state general fund for education enhancement programs as provided by law.
     Section  4.  That § 4-5-29.1 be amended to read as follows:
     4-5-29.1.   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 December 31, 2003, and each calendar year thereafter less the investment expenses transferred pursuant to § 4-5-30. 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 except those received pursuant to §  10-50-52 unless so designated by the Legislature . Beginning with the distribution in fiscal year 2008, the market value shall be determined by adding the market value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. 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 as soon as practicable after July first of the next fiscal year.