22.327.9 97th Legislative Session 724
Introduced by: The Committee on State Affairs at the request of the State Investment Council
An Act to revise certain provisions regarding the investments authorized for state public funds.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That § 4-5-26 be AMENDED:
4-5-26.
Money
State
public funds made
available for investment may be invested in the following classes of
securities and investments and, except as provided by § 3-12C-223,;
chapter 3-13,;
chapter 13-63,;
the permanent school and other educational and charitable trust funds
as provided in S.D. Const., Art. VIII, §§ 2 and 7;
the permanent trust fund containing the net proceeds from the sale of
state cement enterprises,
as provided in S.D. Const., Art. XIII, § 20;
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. Const.,
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) Mortgage-backed securities of United States government-sponsored enterprises;
(4) Direct obligations of the State of South Dakota and any of its political subdivisions;
(4)(5) 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 at the time of purchase;
(5)(6) Savings
accounts, share accounts, certificates of deposit of banks, savings
and loan associations, building and loan associations, and bankers'
acceptances;
or
(7) Repurchase agreements fully collateralized by securities described in this section;
(8) Shares in exchange-traded funds and open-end, no-load funds that are administered by an investment company registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933 and investments are predominantly in securities described in this section; or
(6)(9) In
addition to the investments authorized by subdivisions (1) to
(5)
(8) 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).
Underscores indicate new language.
Overstrikes
indicate deleted language.