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Attorney General Explanations
Constitutional Amendments
The following amendments to the State Constitution are submitted to the
voters by initiative or by the Legislature. The amendments will not become
effective unless approved by majority vote.
Constitutional Amendment A
Title: Initiated amendment to Article VIII, Section 15 of the
South Dakota Constitution concerning the taxation of real property for school
purposes.
Attorney General Explanation: School districts have a
constitutional right to use real property taxes to pay their expenses. On
average, about half of school funding comes from property taxes. If property
taxes are removed as a source of revenue for schools, the Constitution requires
that the Legislature find some other method of funding public schools.
Amendment A would not eliminate property taxes, but would prohibit using such
taxes for public schools.
Amendment A contains no effective date. If it is effective immediately, and
the Legislature does not meet and find an immediate alternative revenue source,
then contract rights may be violated. Property taxes for payment of existing
school bonds will probably not be affected.
Amendment A may conflict with Amendment F. If both constitutional amendments
pass and are found to conflict with each other, one or both could be declared
void.
A vote "Yes" will prohibit the use of property taxes to fund public schools.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment A: Article VIII, Section
15 of the State Constitution shall be amended to read as follows:
�15. The legislature shall make such provision by general taxation as with
the income from the permanent school fund shall secure a thorough and efficient
system of common schools throughout the state. Real property shall not be
subject to taxation for school purposes.
Constitutional Amendment B
Title: An Amendment to Article III of the South Dakota
Constitution concerning the authority of a special interim legislative committee
to approve the transfer of appropriated funds.
Attorney General Explanation: Each year, the entire Legislature
appropriates money which may be spent only for specific, approved purposes.
Amendment B would allow the Legislature to create a joint legislative
committee to act when the Legislature is not in session. This committee would
have the power to approve funding transfers and change the purposes for which
the transferred funds were initially appropriated.
A vote "Yes" will allow a joint legislative committee to approve funding
changes when the Legislature is not in session.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment B: Article III of the
Constitution of the State of South Dakota be amended by adding thereto a NEW
SECTION to read as follows:
� 33. The Legislature may, by law, empower a committee comprised of members
of both houses of the Legislature, acting during recesses or between sessions,
to approve or disapprove transfers of appropriated funds during that fiscal
year.
Constitutional Amendment C
Title: An Amendment to Article III, Section 12 of the South
Dakota Constitution concerning legislative conflicts of interest.
Attorney General Explanation: Amendment C removes some
"conflict of interest" restrictions upon legislators. Legislators are currently
prohibited from having a direct or indirect interest in state contracts and in
some county contracts, during their term or one year thereafter. Amendment C
would allow legislators to have a personal, indirect financial interest in state
contracts, and a direct financial interest in any county contract.
Under current law, no legislator may be elected or appointed to a state or
local office, if the Legislature created the office or increased its
compensation during the legislator's term. Amendment C would allow such an
election or appointment.
Under current law, legislators may not hold certain state executive and
administrative offices during their term. Amendment C would allow legislators to
hold these offices during their term, if they are not compensated.
A vote "Yes" will remove some "conflict of interest" restrictions upon
legislators.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment C: Article III, section
12 of the Constitution of the State of South Dakota, be amended to read as
follows:
� 12. No member of the Legislature shall, during the term for which elected
or appointed, be appointed or elected to any civil office in the state which
shall have been created during the term for which elected or appointed, nor
shall any member receive any paid civil appointment from the Governor, the
Governor and senate, or from the Legislature during the term for which elected
or appointed, and all such appointments and all votes given for any such members
for any such office or appointment shall be void; nor shall any member of the
Legislature during the term for which elected or appointed, or within one year
thereafter, be interested, directly, in any contract with the state, authorized
by any law passed during the term for which elected or appointed.
Constitutional Amendment D
Title: An Amendment to Article IX of the South Dakota
Constitution authorizing local initiatives to provide for the cooperation and
organization of local government.
Attorney General Explanation: Amendment D would allow voters of
local government units to combine, eliminate, or jointly finance local offices,
functions, or governmental units. A majority vote in each affected governmental
unit would be required.
A vote "Yes" will allow voters to file initiatives which combine, eliminate,
or jointly finance local governmental activities and units.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment D: Article IX of the
Constitution of the State of South Dakota be amended by adding a NEW SECTION to
read as follows:
� 4. The voters of any unit of local government shall have the right to
initiate proposals for cooperation within or between governmental units, either
within or without the state, except as the Legislature shall provide otherwise
by law. Such proposals may include combining, eliminating, and joint financing
of offices, functions, and governmental units. Such proposals shall be adopted
if approved at an election by a majority of the votes cast thereon in each
affected unit. A number not less than ten percent of those voting in the last
preceding gubernatorial election in an affected jurisdiction may by petition
initiate the question of whether to adopt the proposal. The Legislature by law
shall provide procedures to ensure the orderly implementation of this section.
The effective date of � 4 of Article IX of the Constitution is January 1,
1999.
Constitutional Amendment E
Title: Initiated amendment to Article XVII of the South Dakota
Constitution concerning ownership and interest in farming.
Attorney General Explanation: Currently, the Constitution does
not restrict the use or ownership of farmland. However, the Legislature has
prohibited some corporations from engaging in farming, and in certain hog
production activities.
Amendment E would create constitutional prohibitions. Many corporations,
limited partnerships, limited liability companies, and other business entities
would not be permitted to own farmland or engage in farming or livestock
production.
Amendment E does not affect current ownership or leasing of farmland, or
livestock production, by these businesses. However, it would prohibit them from
farming new land, or buying, leasing, or contracting for any new interest in
farm lands, farming or livestock production. The Amendment may potentially
prevent these businesses from renewing current leases.
Amendment E would not affect qualified family farm corporations, nonprofit
corporations, certain ag co-ops, research farms, alfalfa leases, livestock
futures, certain custom farm work, security interests, the purchase of land for
nonfarm purposes, and other activities.
A vote "Yes" will prohibit many types of businesses from owning farmlands. It
will also prevent these businesses from having interests in agricultural
contracts, farmlands, or operations.
A vote "No" will leave the Constitution as it is.
Full text of
Constitutional Amendment E:
That Article XVII of the Constitution of the State of South Dakota be
amended by adding thereto new sections to read as follows:
� 21. No corporation or syndicate may acquire, or otherwise obtain an
interest, whether legal, beneficial, or otherwise, in any real estate used for
farming in this state, or engage in farming. The term, corporation, means any
corporation organized under the laws of any state of the United States or any
country. The term, syndicate, includes any limited partnership, limited
liability partnership, business trust, or limited liability company organized
under the laws of any state of the United States or any country. A syndicate
does not include general partnerships, except general partnerships in which
nonfamily farm syndicates or nonfamily farm corporations are partners. The term,
farming, means the cultivation of land for the production of agricultural crops,
fruit, or other horticultural products, or the ownership, keeping, or feeding of
animals for the production of livestock or livestock products.
� 22. The restrictions in � 21 of this Article do not apply to:
(1) A family farm corporation or syndicate. A family farm corporation or
syndicate is a corporation or syndicate engaged in farming or the ownership of
agricultural land, in which a majority of the partnership interests, shares,
stock, or other ownership interests are held by members of a family or a trust
created for the benefit of a member of that family. The term, family, means
natural persons related to one another within the fourth degree of kinship
according to civil law, or their spouses. At least one of the family members in
a family farm corporation or syndicate shall reside on or be actively engaged in
the day-to-day labor and management of the farm. Day-to-day labor and management
shall require both daily or routine substantial physical exertion and
administration. None of the corporation's or syndicate's partners, members, or
stockholders may be nonresident aliens, or other corporations or syndicates,
unless all of the stockholders, members, or partners of such entities are
persons related within the fourth degree of kinship to the majority of partners,
members, or stockholders in the family farm corporation or syndicate;
(2) Agricultural land acquired or leased, or livestock kept, fed or owned, by
a cooperative organized under the laws of any state, if a majority of the shares
or other interests of ownership in the cooperative are held by members in the
cooperative who are natural persons actively engaged in the day-to-day labor and
management of a farm, or family farm corporations or syndicates, and who either
acquire from the cooperative, through purchase or otherwise, such livestock, or
crops produced on such land, or deliver to the cooperative, through sale or
otherwise, crops to be used in the keeping or feeding of such livestock;
(3) Nonprofit corporations organized under state non-profit corporation law;
(4) Agricultural land, which, as of the approval date of this amendment, is
being farmed, or which is owned or leased, or in which there is a legal or
beneficial interest, directly or indirectly owned, acquired, or obtained by a
corporation or syndicate, if such land or other interest is held in continuous
ownership or under continuous lease by the same such corporation or syndicate.
For the purposes of this exemption, land purchased on a contract signed as of
the approval date of this amendment is considered as owned on that date;
(5) Livestock, which as of the approval date of this amendment, is owned by a
corporation or syndicate. For the purposes of this exemption, livestock to be
produced under contract for a corporation or syndicate are considered as owned,
if the contract is for the keeping or feeding of livestock and is signed as of
the approval date of this amendment, and if the contract remains in effect and
is not terminated by either party to the contract. This exemption does not
extend beyond the term of any contract signed as of the approval date of this
amendment;
(6) A farm operated for research or experimental purposes, if any commercial
sales from the farm are only incidental to the research or experimental
objectives of the corporation or syndicate;
(7) Land leases by alfalfa processors for the production of alfalfa;
(8) Agricultural land operated for the purpose of growing seed, nursery
plants, or sod;
(9) Mineral rights on agricultural land;
(10) Agricultural land acquired or leased by a corporation or syndicate for
immediate or potential nonfarming purposes, for a period of five years from the
date of purchase. A corporation or syndicate may hold such agricultural land in
such acreage as may be necessary to its nonfarm business operation, but pending
the development of the agricultural land for nonfarm purposes, such land may not
be used for farming except under lease to a family farm corporation or family
farm syndicate or a non syndicate or noncorporate farm;
(11) Agricultural lands or livestock acquired by a corporation or syndicate
by process of law in the collection of debts, or by any procedures for the
enforcement of a lien, encumbrance, or claim thereon, whether created by
mortgage or otherwise. Any lands so acquired shall be disposed of within a
period of five years and may not be used for farming before being disposed of,
except under a lease to a family farm corporation or syndicate, or a
nonsyndicate or noncorporate farm. Any livestock so acquired shall be disposed
of within six months;
(12) Agricultural lands held by a state or nationally chartered bank as
trustee for a person, corporation or syndicate that is otherwise exempt from the
provisions of sections 21 to 24, inclusive, of this Article;
(13) A bona fide encumbrance taken for purposes of security;
(14) Custom spraying, fertilizing, or harvesting;
(15) Livestock futures contracts, livestock purchased for slaughter within
two weeks of the purchase date, or livestock purchased and resold within two
weeks.
� 23. If a family farm corporation or family farm syndicate that has
qualified under all the requirements of a family farm corporation or a family
farm syndicate ceases to meet the defined criteria, it has twenty years, if the
ownership of the majority of the stock of such corporation, or the majority of
the ownership interest of such syndicate, continues to be held by persons
related to one another within the fourth degree of kinship or their spouses, and
their land holdings are not increased, to either requalify as a family farm
corporation or family farm syndicate or dissolve and return to personal
ownership.
� 24. Any corporation or syndicate that owns agricultural land or engages in
farming is required to report information necessary for the enforcement of
sections 21 to 24, inclusive, of this Article to the Secretary of State on an
annual basis, under rules promulgated by the Secretary pursuant to state law.
The Secretary of State shall monitor such reports and notify the Attorney
General of any possible violations, and any resident of the state may also
notify the Attorney General of any possible violations. If a corporation or
syndicate violates any provision of sections 21 to 24, inclusive, of this
Article, the Attorney General shall commence an action in circuit court to
enjoin any pending illegal purchase of land or livestock, or to force
divestiture of land or livestock held in violation of sections 21 to 24,
inclusive, of this Article. The court shall order any land held in violation of
sections 21 to 24 of this Article to be divested within two years and any
livestock to be divested within six months. If land so ordered by the court has
not been divested within two years, the court shall declare the land escheated
to the state. If the Attorney General fails to bring an action in circuit court
to enforce sections 21 to 24, inclusive, of this Article, any resident of the
state has standing in circuit court to sue for enforcement.
Constitutional Amendment F
Title: An amendment to Article VIII of the South Dakota
Constitution, concerning the classification of property for purposes of
taxation.
Attorney General Explanation: The Constitution permits the
Legislature to classify real property for school taxation purposes, but limits
agricultural property to a single class.
Amendment F would permit an unlimited number of classes of agricultural
property for school taxation purposes. The number of classes and the tax rate
for each class would be set by the Legislature. All property would still be
assessed at or in equal proportion to its fair market value.
Amendment F may conflict with Amendment A. If both constitutional amendments
pass and are found to conflict with each other, one or both could be declared
void.
A vote "Yes" will allow any number of classes of agricultural property for
school taxation purposes.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment F: That � 15 of Article
VIII of the Constitution of the State of South Dakota be amended to read as
follows:
� 15. The Legislature shall make such provision by general taxation and by
authorizing the
school corporations to levy such additional taxes as with the income from the
permanent school fund shall secure a thorough and efficient system of common
schools throughout the state. The Legislature is empowered to classify
properties within school districts into separate classes for purposes of school
taxation. Taxes shall be uniform on all property in the same class.
Constitutional Amendment G
Title: An Amendment to Article VIII of the South Dakota
Constitution, permitting the investment of permanent school funds in certain
stocks, bonds, mutual funds, and other financial instruments.
Attorney General Explanation: The S.D. Investment Council
manages and invests the state permanent school fund, and other educational or
charitable funds. The Investment Council may not buy stocks, mutual funds or
similar investments with this money. Additionally, if any of these funds lose
money, the Legislature must reimburse all losses.
Amendment G would allow the Investment Council to purchase stocks and similar
investments. If these investments lose money, the Legislature would only be
required to reimburse if the loss was caused by imprudence or other
unconstitutional acts.
A vote "Yes" will allow these state funds to be invested in stocks and
similar investments, and limit the reimbursement requirements.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment G: Section 1. That
Article VIII, section 2 of the Constitution of the State of South Dakota, be
amended to read as follows:
� 2. All proceeds of the sale of public lands that have heretofore been or
may hereafter be given by the United States for the use of public schools in the
state; all such per centum as may be granted by the United States on the sales
of public lands; the proceeds of all property that shall fall to the state by
escheat; the proceeds of all gifts or donations to the state for public schools
or not otherwise appropriated by the terms of the gift; and all property
otherwise acquired for public schools, shall be and remain a perpetual fund for
the maintenance of public schools in the state. It shall be deemed a trust fund
held by the state. The principal shall never be diverted by legislative
enactment for any other purpose, and may be increased; but, if any loss occurs
through any unconstitutional act, the state shall make the loss good through a
special appropriation.
Section 2. That Article VIII, section 3 of the Constitution of the State of
South Dakota, be amended to read as follows:
� 3. The interest and income of this fund together with all other sums which
may be added thereto by law, shall be faithfully used and applied each year for
the benefit of the public schools of the state, and shall be for this purpose
apportioned among and between all the several public school corporations of the
state in proportion to the number of children in each, of school age, as may be
fixed by law; and no part of the fund, either principal or interest, shall ever
be diverted, by legislative enactment, even temporarily, from this purpose or
used for any other purpose whatever than the maintenance of public schools for
the equal benefit of all the people of the state. However, the principal may be
prudently invested as provided by law.
That the proceeds of all fines collected from violations of state laws shall
be paid to the county treasurer of the county in which said fine shall have been
imposed, and by him distributed among and between all of the several public
schools incorporated in such county in proportion to the number of children in
each, of school age, as may be fixed by law.
Section 3. That Article VIII, section 7 of the Constitution of the State of
South Dakota, be amended to read as follows:
� 7. All lands, money, or other property donated, granted, or received from
the United States or any other source for a university, agricultural college,
normal schools or other educational or charitable institution or purpose, and
the proceeds of all such lands and other property so received from any source,
shall be and remain perpetual funds, the interest and income of which, together
with the rents of all such lands as may remain unsold, shall be inviolably
appropriated and applied to the specific objects of the original grants or
gifts. The principal of every such fund may be increased, but shall never be
diverted by legislative enactment for any other purpose, and the interest and
income only shall be used. Every such fund shall be deemed a trust fund held by
the state, and the state shall make good all losses that may occur through any
unconstitutional act or where required under the Enabling Act.
Section 4. That Article VIII, section 11 of the Constitution of the State of
South Dakota, be amended to read as follows:
� 11. Except as otherwise required by the Enabling Act, the moneys of the
permanent school and other educational and charitable funds shall be invested by
the state investment council in stocks, bonds, mutual funds, and other financial
instruments as provided by law.
Section 5. That Article VIII, section 13 of the Constitution of the State of
South Dakota, be amended to read as follows:
� 13. The permanent school or other educational and charitable funds of this
state shall be audited by the proper authorities of the state. If any loss
occurs through any unconstitutional act, the state shall make the loss good
through a special appropriation. The amount of indebtedness so created shall not
be counted as a part of the indebtedness mentioned in article XIII, � 2.
Constitutional Amendment H
Title: Amendments to Article III, Section 3 of the South Dakota
Constitution, relating to age qualifications for legislative office, and to
Article IV, Section 2 of the South Dakota Constitution, relating to the age
qualifications for Governor and lieutenant governor.
Attorney General Explanation: The Constitution requires that
state senators and representatives be 25 years of age or older, and that the
Governor and lieutenant governor be 18 years of age or older. Amendment H would
lower the age qualification for state senators and representatives from 25 to
21, and would raise the age qualification for the Governor and lieutenant
governor from 18 to 21.
A vote "Yes" will establish the minimum age requirements for state
legislators, the Governor, and the lieutenant governor, at 21 years old.
A vote "No" will leave the Constitution as it is.
Full text of Constitutional Amendment H: Section 1. That
Article III, section 3 of the Constitution of the State of South Dakota, be
amended to read as follows:
� 3. No person is eligible for the office of senator who is not a qualified
elector in the district from which such person is chosen, a citizen of the
United States, and who has not attained the age of twenty-one years, and who has
not been a resident of the state for two years next preceding election.
No person is eligible for the office of representative who is not a qualified
elector in the district from which such person is chosen, and a citizen of the
United States, and who has not been a resident of the state for two years next
preceding election, and who has not attained the age of twenty-one years.
No judge or clerk of any court, secretary of state, attorney general, state's
attorney, recorder, sheriff or collector of public moneys, member of either
house of Congress, or person holding any lucrative office under the United
States, or this state, or any foreign government, shall be a member of the
Legislature: provided, that appointments in the militia, the offices of notary
public and justice of the peace shall not be considered lucrative; nor shall any
person holding any office of honor or profit under any foreign government or
under the government of the United States, except postmasters whose annual
compensation does not exceed the sum of three hundred dollars, hold any office
in either branch of the Legislature or become a member thereof.
Section 2. That Article IV, section 2 of the Constitution of the State of
South Dakota, be amended to read as follows:
� 2. The Governor and lieutenant governor must be citizens of the United
States, have attained the age of twenty-one years, and be residents of the State
of South Dakota for two years preceding their election. They shall be jointly
elected for a term of four years at a general election held in a nonpresidential
election year. The candidates having the highest number of votes cast jointly
for them shall be elected. Commencing with the 1974 general election, no person
shall be elected to more than two consecutive terms as Governor or as lieutenant
governor. The election procedure shall be as prescribed by law.
Referred Laws
Referred Law 1 has been removed from the ballot.
The following law was adopted by the Legislature and referred to the voters
by petition. This law will not become effective unless approved by majority
vote.
Referred Law 2
Title: An act to transfer the unclaimed property office from
the State Treasurer's Office to the Secretary of Revenue.
Explanation: Under current law, the State Treasurer administers
the unclaimed property laws. The 1997 Legislature transferred this
responsibility to the Secretary of Revenue.
A vote "Yes" will transfer the unclaimed property office to the Secretary of
Revenue.
A vote "No" will leave the unclaimed property office with the State
Treasurer.
Full text of Referred Law 2: Section 1. That � 26-6-20.10 be
amended to read as follows:
�26-6-20.10. If, upon the death of a resident and after notification to a
known guardian or conservator or relatives of property belonging to the
resident, not exceeding two hundred dollars in value, the property remains
unclaimed for sixty days, the property shall escheat directly to the state
notwithstanding chapter 21-36. The home, center, or other facility shall notify
the office of surplus property of the unclaimed property. However, all money,
stocks, bonds, contracts, and claims on banks which can readily be converted to
money shall be sent to the secretary of revenue for deposit in the general fund.
Section 2. That � 34-12-15.10 be amended to read as follows:
�34-12-15.10. If, upon the death of a resident and after notification to any
known guardian, conservator, or relatives of property belonging to the resident,
not exceeding two hundred dollars in value, the property remains unclaimed for
sixty days, the property shall escheat directly to the state notwithstanding
chapter 21-36. The home or other facility shall notify the office of surplus
property of the unclaimed property. However, all money, stocks, bonds,
contracts, and claims on banks which can readily be converted to money shall be
sent to the secretary of revenue for deposit in the general fund.
Section 3. That subdivision (1) of � 43-41B-1 be amended to read as follows:
(1) "Administrator," the secretary or revenue;
Section 4. That � 43-41B-18 be amended to read as follows:
� 43-41B-18. (a) A person holding property tangible or intangible, presumed
abandoned and subject to custody as unclaimed property under this chapter shall
report to the administrator concerning the property as provided in this section.
The expiration of any period of time specified by statute or court order, during
which an action or proceeding may be commenced or enforced to obtain payment of
a claim for money or recovery of property, does not prevent the money or
property from being presumed abandoned property, nor affect any duty to file a
report required by this chapter or to pay or deliver abandoned property to the
secretary of revenue.
The holder of unclaimed property shall, before filing the annual report
required by this section, communicate with the owner and take necessary steps to
prevent abandonment from being presumed by exercising due diligence to ascertain
the whereabouts of the owner. This shall include the mailing of notice to each
person having an address if the person is entitled to property of the value of
fifty dollars or more presumed abandoned under this chapter.
The mailed notice shall contain:
(1) A statement that according to the records of the holder, property is
being held to which the addressee appears to be entitled;
(2) Information regarding any changes of the name of the holder; and
(3) A statement that the property will escheat to the state.
(b) The report shall be verified and shall include:
(1) Except with respect to travelers checks and money orders, the name, if
known, and last known address, if any, of each person appearing from the records
of the holder to be the owner of property of the value of fifty dollars or more
presumed abandoned under this chapter;
(2) In the case of unclaimed funds of fifty dollars or more held or owing
under any life or endowment insurance policy or annuity contract, the full name
and last known address of the insured or annuitant and of the beneficiary
according to the records of the insurance company holding or owing the funds;
(3) In the case of the contents of a safe deposit box or other safekeeping
repository or of other tangible property, a description of the property and the
place where it is held and may be inspected by the administrator and any amounts
owing to the holder;
(4) The nature and identifying number, if any, or description of the property
and the amount appearing from the records to be due, but items of value under
fifty dollars each may be reported in the aggregate;
(5) The date the property became payable, demandable, or returnable, and the
date of the last transaction with the apparent owner with respect to the
property; and
(6) Other information the administrator prescribes by rule as necessary for
the administration of this chapter.
(c) If the person holding property presumed abandoned and subject to custody
as unclaimed property is a successor to other persons who previously held the
property for the apparent owner or the holder has changed the holder's name
while holding the property, the person shall file with the report all known
names and addresses of each previous holder of the property.
(d) The report shall be filed before November first of each year as of June
thirtieth, next preceding, but the report of any life insurance company shall be
filed before May first of each year as of December thirty-first next preceding.
On written request by any person required to file a report, the administrator
may postpone the reporting date or waive any interest fees or penalties.
(e) The holder in possession of property presumed abandoned and subject to
custody as unclaimed property under this chapter shall, between the time of the
commencement and the termination of the applicable dormancy period, send written
notice to the apparent owner at the owner's last known address informing the
owner that the holder is in possession of property subject to this chapter if:
(1) The holder has in its records an address for the apparent owner which the
holder's records disclose to be accurate;
(2) The claim of the apparent owner is not barred by the statutes of
limitations; and
(3) The property has a value of fifty dollars or more.
Section 5. That � 43-41B-24.1 be amended to read as follows:
� 43-41B-24.1. Money in the unclaimed property trust fund for payment of
costs and expenses authorized under � 43-41B-24 is continuously appropriated for
those purposes. Any expenditures shall be paid upon warrants drawn by the state
auditor pursuant to vouchers authorized by the secretary of revenue. All funds
paid out by the secretary of revenue under chapter 43-41B shall be set forth in
an informational budget as described in � 4-7-7.2 and be annually reviewed by
the Legislature.
Section 6. That � 43-41B-31 be amended to read as follows:
� 43-41B-31. (a) The administrator may require any person who has not filed a
report to file a verified report stating whether or not the person is holding
any unclaimed property reportable or deliverable under this chapter.
(b) The administrator, at reasonable times and upon reasonable notice, may
examine the records of any person to determine whether the person has complied
with the provisions of this chapter. The administrator may conduct the
examination even if the person believes it is not in possession of any property
reportable or deliverable under this chapter.
(c) If a person is treated under � 43-41B-13, as the holder of the property
only insofar as the interest of the business association in the property is
concerned, the administrator, pursuant to subsection (b), may examine the
records of the person if the administrator has given the notice required by
subsection (b) to both the person and the business association at least sixty
days before the examination.
(d) If an examination of the records of a person results in the disclosure of
property reportable and deliverable under this chapter, the administrator may
assess the cost of the examination against the holder at the rate of one hundred
dollars a day for each examiner, but in no case may the charges exceed the value
of the property found to be reportable and deliverable.
Section 7. That � 43-41B-36 be amended to read as follows:
� 43-41B-36. All agreements to pay compensation to recover or assist in the
recovery of property reported under � 43-41B-18, made within twelve months prior
to the reporting and remitting of abandoned property accounts and within
twenty-four months after the date payment or delivery is made under � 43-41B-20,
are unenforceable. No agreement entered into after twenty-four months of the
required date of delivery of the property by the holder to the secretary of
revenue is valid if a person thereby undertakes to locate property included in a
report for a fee or other compensation exceeding twenty-five percent of the
value of the recoverable property unless the agreement is in writing and signed
by the owner. Nothing in this section may be construed to prevent an owner from
asserting at any time that an agreement to locate property is based upon
excessive or unjust consideration. A violation of this section is a Class 1
misdemeanor.
Section 8. That � 47-7-49 be amended to read as follows:
� 47-7-49. Upon the voluntary or involuntary dissolution of a corporation,
the portion of the assets distributable to a creditor or shareholder who is
unknown or cannot be found, or who is under disability and there is no person
legally competent to receive such distributive portion, shall be reduced to cash
and deposited with the secretary of revenue and shall be paid over to such
creditor or shareholder or to such person's legal representative upon proof
satisfactory to the secretary of revenue of such person's right thereto.
Section 9. That � 47-18-26 be amended to read as follows:
� 47-18-26. Upon liquidation of a cooperative, the assets distributable to
persons who are unknown or cannot be found may be reduced to cash and deposited
with the state treasury. If claimed within ten years thereafter the funds shall
be paid without interest to persons entitled thereto upon proof satisfactory to
the secretary of revenue of their right thereto. If not claimed within ten
years, the funds shall become the property of the state to be used in furthering
agriculture.
Section 10. That � 47-26-38 be amended to read as follows:
� 47-26-38. Upon the voluntary or involuntary dissolution of a corporation,
the portion of the assets distributable to any person who is unknown or cannot
be found, or who is under disability and there is no person legally competent to
receive the distributive portion, shall be reduced to cash and deposited with
the secretary of revenue and shall be paid over to such person or to the
person's legal representative upon proof satisfactory to the secretary of
revenue of the person's right thereto.
Section 11. That � 51A-11-10 be amended to read as follows:
� 51A-11-10. If the rental due on a safe deposit box has not been paid for
one year, the lessor may send a notice by registered or certified mail to the
last known address of the lessee stating that the safe deposit box will be
opened and its contents stored at the expense of the lessee unless payment of
the rental is made within thirty days. After such time the box may be opened in
the presence of an officer of the lessor and a notary public. The notary public
shall issue a certificate reciting the name of the lessee, the date of the
opening of the box, the names of the witnesses present, and a list of its
contents. The certificate with the contents of the box shall be included in a
sealed package marked with the lessee's name and date of opening, and it shall
then be placed in the general vaults of the lessor at a rental not exceeding the
rental previously charged for the box until it is claimed or delivered to the
secretary of revenue for disposal pursuant to chapter 43-41B. The secretary of
revenue shall reimburse the lessor for unpaid box rentals from the proceeds of
the package, if any.
Section 12. That � 51A-15-5 be amended to read as follows:
� 51A-15-5. The contents of safe deposit boxes which have not been removed
within thirty days after demand shall be opened and the contents dealt with in
the manner provided for boxes upon which the payment of rental is in default and
the sealed packages containing the contents and the certificates together with
any other unclaimed property held by the bank as bailee and certified
inventories thereof shall be transferred to the secretary of revenue who shall
retain it for one year unless sooner claimed by the person entitled thereto.
After one year the secretary of revenue shall dispose of the property pursuant
to chapter 43-41B.
Section 13. That � 51A-15-7 be amended to read as follows:
� 51A-15-7. Any assets remaining after the discharge of all obligations shall
be distributed to the stockholders in accordance with their respective
interests. No distribution may be made before:
(1) All claims of depositors and creditors have been paid, or, in the case of
any disputed claim, the bank has transmitted to the director a sum adequate to
meet any liability that may be judicially determined.
(2) Any funds payable to a depositor or creditor and unclaimed have been
transmitted to the secretary of revenue, and
(3) Approved by the director.
Any unclaimed distribution to a stockholder or depositor shall be held until
ninety days after the final distribution and then transmitted to the secretary
of revenue for disposition pursuant to chapter 43-41B.
Section 14. That � 51A-15-43 be amended to read as follows:
� 51A-15-43. Unclaimed funds remaining after the completion of the
liquidation shall be transferred to the secretary of revenue for disposal
pursuant to chapter 43-41B.
Section 15. That � 52-13-52 be amended to read as follows:
� 52-13-52. Unclaimed funds remaining after the completion of the liquidation
by the director of the Division of Banking are transferred to the secretary of
revenue for disposal pursuant to chapter 43-41A.
Section 16. That � 58-29B-128 be amended to read as follows:
� 58-29B-128. All unclaimed funds subject to distribution remaining in the
liquidator's hands when the liquidator is ready to apply to the court for
discharge, including the amount distributable to any creditor, shareholder,
member, or other person who is unknown or cannot be found, shall be deposited
with the secretary of revenue, and shall be paid without interest except in
accordance with � 58-29B-123 to the person entitled thereto or the person's
legal representative upon proof satisfactory to the secretary of revenue of the
person's right thereto. Any amount on deposit not claimed within six years from
the discharge of the liquidator shall be deemed to have been abandoned and shall
be escheated without formal escheat proceedings and be deposited into the
general fund.
Section 17. That � 58-29B-129 be amended to read as follows:
� 58-29B-129. All funds withheld under � � 58-29B-112 to 58-29B-114,
inclusive, and not distributed shall upon discharge of the liquidator be
deposited with the secretary of revenue and paid by the secretary in accordance
with � 58-29B-123. Any sums remaining which under � 58-29B-123 would revert to
the undistributed assets of the insurer shall be transferred to the secretary of
revenue and become the property of the state under � 58-29B-128, unless the
director petitions the court to reopen the liquidation under � 58-29B-131.
Section 18. That � 58-29B-130 be amended to read as follows:
� 58-29B-130. If all assets justifying the expense of collection and
distribution have been collected and distributed under this chapter, the
liquidator shall apply to the court for discharge. The court may grant the
discharge and make any other orders, including an order to transfer to the
secretary of revenue any remaining funds that are uneconomic to distribute, as
may be deemed appropriate. Any other person may apply to the court at any time
for an order under this section. If the application is denied, the applicant
shall pay the costs and expenses of the liquidator in resisting the application,
including a reasonable attorney's fee.
Section 19. That chapter 43-41B be amended by adding thereto a NEW SECTION to
read as follows:
On July 1, 1997, the state treasurer shall transfer to the secretary of
revenue all funds and unclaimed property collected and held by the state
treasurer pursuant to the provisions of chapter 43- 41B, � � 26-6-20.10,
34-12-15.10, 47-7-49, 47-18-26, 47-26-38, 51A-11-10, 51A-15-5, 51A-15-7,
51A-15-43, 52-13-52, 58-29B-128, 58-29B-129, and 58-29B-130. In addition, the
state treasurer shall transfer to the secretary of revenue all books of account,
receipts, and other documentation relating to the funds and unclaimed property.