CHAPTER 5-10
STATE SCHOOL AND ENDOWMENT FUNDS
5-10-1 Assignment of receipts from leases, interest, and land sales to income and permanent funds.
5-10-1.1 Board of Regents endowed institution interest and income fund created.
5-10-1.2 Endowed institution interest and income fund--Allocation.
5-10-2 5-10-2. Repealed by SL 1980, ch 46, § 1.
5-10-3 Accounts and records maintained by commissioner.
5-10-4 Supervision by commissioner of collections, apportionment, and distribution of funds.
5-10-5 Annual statement to counties of sale and lease payments coming due.
5-10-6 Apportionment among counties and institutions of income from school lands and funds.
5-10-7 County treasurer's receipts for payments by lessees and purchasers--Disposition of copies.
5-10-8 5-10-8, 5-10-9. Repealed by SL 1988, ch 49, §§ 4, 5.
5-10-10 5-10-10. Repealed by SL 1980, ch 46, § 4.
5-10-11 5-10-11, 5-10-12. Repealed by SL 1982, ch 53, §§ 4, 5.
5-10-13 5-10-13, 5-10-14. Repealed by SL 1988, ch 49, §§ 6, 7.
5-10-15 5-10-15. Repealed by SL 1982, ch 53, § 6.
5-10-16 Delivery of payment by lessee or purchaser to state treasurer.
5-10-17 Credit to school and endowment fund.
5-10-18 Investment of permanent school funds.
5-10-18.1 5-10-18.1, 5-10-18.2. Repealed by SL 2001, ch 26, §§ 7, 8.
5-10-18.3 Adjusting funds by rate of inflation--Procedure.
5-10-19 5-10-19, 5-10-20. Repealed by SL 1973, ch 37, § 3.
5-10-21 5-10-21, 5-10-22. Repealed by SL 1980, ch 46, §§ 5, 6.
5-10-23 Bidding and purchase by state at judgment sale of school and public lands.
5-10-24 Maximum price bid by state--Allowance for prior encumbrances.
5-10-25 Disposition of proceeds of judgment.
5-10-26 5-10-26 to 5-10-31. Repealed by SL 1974, ch 47, § 3.
5-10-32 5-10-32. Repealed by SL 1980, ch 46, § 7.
5-10-33 5-10-33. Repealed by SL 1974, ch 47, § 3.
5-10-34 Reporting status of common school interest and income fund and status of common school apportionment.
5-10-1. Assignment of receipts from leases, interest, and land sales to income and permanent funds.
The income from the leased lands of each class of school and public lands and the interest on the permanent fund of that class shall be assigned by the state treasurer to a fund to be known as the interest and income fund of such class. However, the income from any commercial lease made by the commissioner of school and public lands pursuant to SL 2017, ch 51, §§ 1 to 3, inclusive, as amended by SL 2018, ch 111, §§ 1 to 3, inclusive, shall be continuously appropriated to the endowed institution for use in maintaining the property and supporting the operations of the endowed institution. The principal of money derived from the sale of each class of lands granted to the state for educational and charitable purposes shall be assigned by the state treasurer to a fund to be known as the permanent fund of such class.
Source: SL 1911, ch 224, § 39; RC 1919, § 5663; SDC 1939, § 15.0601; SL 1957, ch 45; SL 2018, ch 111, § 9, eff. Feb. 8, 2018.
5-10-1.1. Board of Regents endowed institution interest and income fund created.
There is hereby created in the state treasury a fund called the Board of Regents endowed institution interest and income fund to be administered by the commissioner of school and public lands. Any investments of money in the fund shall be made by the State Investment Council. No allocations or expenditures may be made from the fund except as provided in § 5-10-1.2. The fund shall be declared a participating fund and it shall be credited for all interest, dividends, and other income earned on fund balances, in accordance with the provisions of § 5-10-18.3.
Source: SL 1989, ch 50, § 1; SL 1997, ch 37, § 2; SL 2001, ch 26, § 4.
5-10-1.2. Endowed institution interest and income fund--Allocation.
The commissioner of school and public lands shall deposit revenue collected for state endowed institutions under the control of the Board of Regents, pursuant to § 5-10-1 and chapters 10-4 and 10-6, in the Board of Regents endowed institution interest and income fund, created by § 5-10-1.1, and credit the appropriate institutional account within the fund. On a periodic basis, the commissioner shall allocate the money to the appropriate institutions.
The total allocation for an institution for a fiscal year is the lesser of that institution's revenue for the fiscal year plus the beginning cash balance of the institution's account or:
$ 236,041 for the University of South Dakota;
$ 548,451 for South Dakota State University;
$ 133,022 for South Dakota School of Mines and Technology;
$ 183,393 for Northern State University;
$ 173,360 for Dakota State University;
$ 173,360 for Black Hills State University;
$ 97,959 for South Dakota Services for the Deaf;
$ 94,712 for the School for the Blind and the Visually Impaired; and
$ 77,745 for the agricultural experiment station.
Revenue in excess of the allocation shall be credited to the corresponding institutional account. If the cash balance of any institutional account exceeds fifty percent of the maximum allocation for that institution at the end of the fiscal year, the commissioner shall allocate the portion over fifty percent to the institution in the next fiscal year in addition to the normal allocation.
Source: SL 1989, ch 50, § 2; SL 1989, ch 170, §§ 1-3; SL 1990, ch 44; SL 1998, ch 110, § 4; SL 1999, ch 25, § 3; SL 2023, ch 62, § 2.
5-10-3. Accounts and records maintained by commissioner.
The commissioner of school and public lands shall keep an accurate account of all money due or to become due the state on account of sales and leases of school and public lands and the interest arising from the loaning of the permanent school fund.
Source: SL 1911, ch 224, §§ 38, 61; RC 1919, §§ 5662, 5701; SDC 1939, § 15.0601; SL 1957, ch 45; SL 1984, ch 34, § 12.
5-10-4. Supervision by commissioner of collections, apportionment, and distribution of funds.
The commissioner of school and public lands shall have supervision of the collection of all money due the state for the purposes aforesaid, and of the apportionment and distribution of such funds to the several counties and public institutions of the state.
Source: SL 1911, ch 224, § 62; RC 1919, § 5702; SDC 1939, § 15.0602.
5-10-5. Annual statement to counties of sale and lease payments coming due.
The commissioner of school and public lands shall on or before the fifteenth day of December of each year furnish to the treasurer of each county a full statement of the principal and interest on sales and rental on term leases falling due in such county on the first day of January following.
Source: SL 1911, ch 224, § 63; RC 1919, § 5703; SDC 1939, § 15.0602; SL 1980, ch 46, § 2.
5-10-6. Apportionment among counties and institutions of income from school lands and funds.
The commissioner of school and public lands, after any adjustments that have been made pursuant to § 5-10-18.3, shall make a division and apportionment of all funds derived from the leasing of school and public lands, from interest, dividends, and other income on all invested funds derived from the sale of school and public lands, and from interest, dividends, and other income on invested funds derived from the five percent paid to the state by the United States on sales of public lands within the state, such apportionment to be made among the counties, and the educational, penal, and charitable institutions, as provided by law.
Source: SDC 1939, § 15.0108; SL 2001, ch 26, § 5.
5-10-7. County treasurer's receipts for payments by lessees and purchasers--Disposition of copies.
The county treasurer shall, for all money paid to him by any lessee or purchaser, execute triplicate receipts, and shall deliver one receipt to the person paying the same, transmit one receipt and the accompanying payment to the commissioner of school and public lands, not later than the third business day, and file the other receipt in his office.
Source: SL 1911, ch 224, § 43; RC 1919, § 5667; SDC 1939, § 15.0601; SL 1957, ch 45; SL 1988, ch 49, § 3.
5-10-16. Delivery of payment by lessee or purchaser to state treasurer.
Upon receipt of payment by a lessee or purchaser, if remitted in the proper form and in the proper amount, the commissioner of school and public lands shall forthwith deliver the payment to the state treasurer with instructions as to the fund to be credited.
Source: SL 1945, ch 66, § 3; SDC Supp 1960, § 15.0605-1; SL 1988, ch 49, § 8.
5-10-17. Credit to school and endowment fund.
The state treasurer shall, upon receipt, credit such business receipts to the state school and endowment fund.
Source: SL 1973, ch 37, § 1.
5-10-18. Investment of permanent school funds.
The moneys of the common school permanent fund and other educational funds shall be invested by the State Investment Council, in accordance with the provisions of § 4-5-27.
Source: SL 1951, ch 85; SL 1953, ch 47; SL 1955, ch 37; SL 1957, ch 46; SDC Supp 1960, § 15.0609-1; SL 1969, ch 34; SL 1970, ch 36; SL 1970, ch 37; SL 1972, ch 29; SL 1983, ch 28, § 4; SL 1992, ch 60, § 2; SL 1997, ch 37, § 3; SL 2001, ch 26, § 6.
5-10-18.3. Adjusting funds by rate of inflation--Procedure.
In adjusting the principal of the common school permanent fund and other educational and charitable funds by the rate of inflation pursuant to Article VIII, Section 3 of the South Dakota Constitution, the State Investment Council shall proceed as follows:
(1) The inflation adjustment period is the fiscal year, beginning July first and ending June thirtieth. The first inflation adjustment period begins on November 15, 2000, and ends on June 30, 2001. The principal shall be credited each year for the inflation adjustment at the time of the common school apportionment beginning in 2002;
(2) The rate of inflation is based on the consumer price index prepared by the Bureau of Labor Statistics of the United States Department of Labor;
(3) The principal balance in each permanent school and other educational and charitable fund as of November 15, 2000, adjusted by amounts as provided by law, is the principal balance to be increased by the rate of inflation; and
(4) The inflation adjustment requirement shall be met using realized net capital gains. If these are not sufficient, the interest, dividends, and other income shall be used. Any excess realized net capital gains shall be carried forward for the following year's inflation adjustment.
Source: SL 2001, ch 26, § 1.
5-10-23. Bidding and purchase by state at judgment sale of school and public lands.
Whenever any real property is sold to satisfy a judgment in favor of the state in any action relating to the school and public lands, it shall be the duty of the commissioner of school and public lands to represent the state as a bidder at such sale and, if he shall purchase such property, the certificate of sale and sheriff's deed, if one be issued, shall be made to the state.
Source: SL 1911, ch 224, § 83; RC 1919, § 5713; SDC 1939, § 15.0608.
5-10-24. Maximum price bid by state--Allowance for prior encumbrances.
The maximum price which the commissioner of school and public lands shall bid for any such property at any such sale shall be determined by an appraisement, to be made in the same manner that the school and public lands of the state are by law required to be appraised, but such price shall never exceed the amount of prior encumbrances, judgments, interest, and costs.
Source: SL 1911, ch 224, § 84; RC 1919, § 5714; SDC 1939, § 15.0608.
5-10-25. Disposition of proceeds of judgment.
All money received as the proceeds of any such sales, or in satisfaction of any judgment obtained in favor of the state in any such action shall be paid to the state treasurer and by him be divided and apportioned according to law.
Source: SL 1911, ch 224, § 85; RC 1919, § 5715; SDC 1939, § 15.0608.
5-10-34. Reporting status of common school interest and income fund and status of common school apportionment.
The commissioner of school and public lands shall report the status of the common school interest and income fund to the superintendents of the common schools on a quarterly basis.
The commissioner of school and public lands shall report the status of the common school apportionment by October thirty-first to the Governor, the chairs of the house and senate appropriations committees and the secretary of the Department of Education.
Source: SL 1990, ch 45; SL 2004, ch 17, § 7.
