This bill amends existing laws regarding the management of unclaimed property in South Dakota, specifically focusing on the handling of net receipts from unclaimed property. It establishes a "general fund contribution limit" that dictates the maximum amount of unclaimed property receipts that can be deposited into the general fund each fiscal year, starting with specific amounts for fiscal years 2026 through 2035. Additionally, it creates a new trust fund for unclaimed property, which will hold any net receipts that exceed this contribution limit. The state treasurer is tasked with administering this fund, which is intended to cover the return of unclaimed property, audit expenses, and any excess amounts will be distributed to the general fund.

Furthermore, the bill outlines the process for the distribution of funds from the trust fund to the general fund, specifying that the state investment officer will calculate a distribution amount based on a percentage of the trust fund's market value. This distribution process will change slightly after fiscal year 2031, shifting from an annual market value assessment to a quarterly average calculation. The bill aims to ensure that while the general fund receives a controlled amount of unclaimed property receipts, any excess is preserved in the trust fund for future use, thereby enhancing the management and accountability of unclaimed property funds in the state.

Statutes affected:
Senate Appropriations Engrossed, 02/18/2025: 43-41B-24, 43-41B-24.1
Senate Engrossed, 02/20/2025: 43-41B-24, 43-41B-24.1
Enrolled, 03/06/2025: 43-41B-24, 43-41B-24.1