Memorials, Professional Achievement - Brittney Osburne, Mt. Juliet Middle School Teacher of the Year -

114th Regular Session (2025-2026) Introduced by Mark Pody

Establishes a constitutionally protected trust for unclaimed property receipts to grow earnings and provide a growing, restricted annual distribution to the state general fund.

Signed by Governor.

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Main purpose

To establish a constitutional trust fund to receive and invest net receipts from unclaimed property, protect those receipts from routine diversion, provide for investment by the State Investment Council, and allow a predictable, growing annual distribution of investment earnings to the state general fund beginning July 1, 2027.

Key provisions

Creates a new section in Article XII of the South Dakota Constitution establishing the "trust for unclaimed property fund" in the state treasury.

Requirement for deposits: after passage and after each future receipt of unclaimed property, the state treasurer must pay claims and authorized expenses and any deposits to the general fund required by law, then deposit the remaining net receipts into the trust fund.

Distributions to general fund: beginning July 1, 2027, and each July 1 thereafter, the treasurer must distribute a portion of the trust fund’s interest and income to the general fund. The amount and calculation method are to be prescribed by statute and must promote (1) growth of the trust fund and (2) a steadily growing distribution amount.

Restrictions on use: neither interest/income nor principal may be diverted except when:

The treasurer determines funds are necessary to pay claims associated with unclaimed property; or
The treasurer determines an amount must be returned as unclaimed property by law; or
The amount is appropriated by a three‑fourths vote of all members‑elect of each legislative chamber.

Investment authority: the State Investment Council (or its successor) shall invest the trust in stocks, bonds, mutual funds, and other financial instruments as provided by law.

Who is affected

State Treasurer — responsible for receipts, claims payments, deposits into the trust, and annual distributions.

State Investment Council — responsible for investing trust assets.

State General Fund — will receive a portion of the trust’s earnings beginning FY 2027–28 under statutory rules.

Holders/claimants of unclaimed property — protections for claim payments are explicitly preserved.

Legislature and voters — the amendment must be approved by voters; the Legislature may set distribution calculations by statute and could appropriate principal only by a 3/4 vote.

Procedural status & timeline

Introduced in Senate: January 30, 2025 (1st reading S.J. 137).

Passed Senate (amended) — Do Pass Amended 35–0; amendment SJR505A adopted.

Passed House (amended) — Do Pass Amended 69–0.

Final actions: Signed by President (3/10/2025) and Speaker (3/11/2025); delivered to Secretary of State (3/12/2025).

Next step: Submitted to voters at the next general election for ratification.

Potential impacts / considerations

Creates a constitutionally protected, invested reserve from unclaimed property receipts, which could increase long‑term earnings and produce more predictable revenue flows to the general fund.

Reduces the Legislature’s routine ability to sweep these receipts into the general fund; principal is further protected and only accessible under limited circumstances.

The actual fiscal effect depends on statutory choices (how distribution amounts are calculated) and future investment performance.

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