1998 Ballot Question Text and Attorney General Explanations

Special Congressional Election Process

Constitutional Amendment A
Constitutional Amendment B
Constitutional Amendment C
Constitutional Amendment D
Constitutional Amendment E
Constitutional Amendment F
Constitutional Amendment G
Constitutional Amendment H
Referred Law 1 has been removed from the ballot.
Referred Law 2

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.