Source: http://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=StatuteChapter&Statute=4-5
Timestamp: 2018-01-17 07:03:05
Document Index: 664090684

Matched Legal Cases: ['§ 4', '§ 4', '§ 4', '§ 55', '§ 1', '§ 4', '§ 1', '§ 34', '§ 35', '§ 4', '§ 1', '§ 48', '§ 1', '§ 1', '§ 1', '§ 1', '§ 4', '§ 2', '§ 48', '§ 1', '§ 1', '§ 4', '§ 3', '§ 48', '§ 1', '§ 1', '§ 2', '§ 1', '§ 1', '§ 4', '§ 4', '§ 1', '§ 4', '§ 4', '§ 2', '§ 2', '§ 5', '§ 2', '§ 6', '§ 4', '§ 9', '§ 2', '§ 9', '§ 11', '§ 4', '§ 4', '§ 13', '§ 2', '§ 1', '§ 2', '§ 4', '§ 22', '§ 4', '§ 4', '§ 5', '§ 4', '§ 4', '§ 4', '§ 1', '§ 23', '§ 19', '§ 25', '§ 4', '§ 28', '§ 29', '§ 4', '§ 4', '§ 4', '§ 1', '§ 5', '§ 3', '§ 4', '§ 4', '§ 4', '§ 3', '§ 5', '§ 8', '§ 4', '§ 4', '§ 5', '§ 4', '§ 4', '§ 7', '§ 4', '§ 8', '§ 4', '§ 9', '§ 4', '§ 4', '§ 4', '§ 12', '§ 4', '§ 4']

SDLRC - Codified Law 4-5
CUSTODY AND INVESTMENT OF STATE FUNDS
4-5-1 State treasurer not to profit from use of funds--Felony--Civil liability.
4-5-2 Incidental funds established for state institutions--Initial warrant.
4-5-3 Purposes for which institution incidental funds may be used.
4-5-4 Accounting for disbursements and reimbursement of institution incidental funds.
4-5-4.1 Limitation of warrants on institutions' funds--Diversion of other funds prohibited--Proration of income.
4-5-4.2 Repealed.
4-5-5 Investment of political subdivision funds--Funds subject to provisions.
4-5-6 Investment in securities of or guaranteed by United States, repurchase agreements, or shares of registered investment companies.
4-5-6.1 Investment of public funds not needed for current operating expenses--Conditions.
4-5-6.2 Investment in direct obligations of county, municipality, or school district or in bonds issued by state authority.
4-5-7 Superseded.
4-5-8 Investment policies for local funds determined by governing board.
4-5-9 Custody or deposit of investments--Exception--Credit of interest earned.
4-5-10 Application for redemption of securities.
4-5-11 Supplemental authority for investment of public funds.
4-5-12 State Investment Council continued.
4-5-12.1 Regulations and reports provided to state treasurer.
4-5-13 Appointment and terms of investment council members.
4-5-14 Qualifications of council members--Restrictions on business and political activities.
4-5-14.1 Exceptions to § 4-5-14.
4-5-15 Repealed.
4-5-16 Removal of council member from office--Filling of vacancies.
4-5-17 Election of chairman.
4-5-18 Division of investment continued--Immediate supervision.
4-5-18.1 Repealed.
4-5-19 Appointment of state investment officer--Removal--Qualifications.
4-5-20 Investment officer to devote full time--Salary.
4-5-21 State employees' blanket bond coverage--Premium.
4-5-22 Annual budget for division--Appointment of employees.
4-5-23 Public funds to be invested by investment officer--Functions transferred--Agreements with risk-sharing entities.
4-5-24 Omitted.
4-5-25 Monthly reports to investment officer of state transactions.
4-5-26 Classes of investments approved.
4-5-27 Prudent-man standard required in investments.
4-5-28 Policy regulations and restrictions formulated by council.
4-5-29 Investment officer authorized to make transactions--Duty to protect state interests.
4-5-29.1 Health care trust fund--Investment officer to calculate amount eligible for distribution--Transfer to state general fund.
4-5-29.2 Education enhancement trust fund--Calculation of amount eligible for distribution--Transfer to general fund--Postsecondary scholarship grant programs.
4-5-30 Pooling of cash accounts--Certification by Appropriations Committee--Prorating of income--Transfer of money to investment council expense account.
4-5-30.1 Repealed.
4-5-31 Physical custody of securities purchased--Deposit with fiscal agent.
4-5-32 Monthly report to investment council--Contents--Public inspection.
4-5-33 Meetings of investment council--Access to records--Inspection and review.
4-5-34 Proceedings to collect principal or interest on investments--Refunding of securities held.
4-5-35 Post-audit of investment transactions--Annual report of auditor-general.
4-5-36 Reports to Legislature by investment council.
4-5-37 Conflicts with other laws.
4-5-38 Severability of provisions.
4-5-39 Short title.
4-5-40 Agreement to purchase general obligation funding bonds--Certification and approval required--Bonds to bear interest, mature, etc.
4-5-41 School district eligibility--Determination and certification.
4-5-42 Prudent investment defined--Liability.
4-5-43 Obligation to purchase--Enforceability.
4-5-44 Cost of participation.
4-5-45, 4-5-46. Repealed.
4-5-47 Investment of trust fund containing proceeds from sale of state cement enterprises.
4-5-48 Definition of terms related to investments in companies liable under Iran Sanctions Act.
4-5-49 Identification of holdings in scrutinized companies.
4-5-50 List of scrutinized companies.
4-5-51 Updating scrutinized companies list.
4-5-52 Procedures with respect to companies on scrutinized companies list.
4-5-53 Divestiture of securities in companies with scrutinized business operations.
4-5-54 Acquisition of securities in companies with scrutinized business operations prohibited.
4-5-55 Exemption from divestiture requirements.
4-5-56 Inapplicability to certain investments.
4-5-57 Indirect holdings in actively managed investment funds.
4-5-58 Report to Legislative Research Council Executive Board.
4-5-59 Circumstances under which §§ 4-5-48 to 4-5-60, inclusive, become inoperative.
4-5-60 Construction with other state law.
4-5-4. Accounting for disbursements and reimbursement of institution incidental funds. In each case, where such a payment is made, the amount thereof shall be returned to said permanent incidental fund immediately upon receipt of the state auditor's warrant drawn on the proper fund or appropriation covering the bill for which said payment was advanced and for that purpose a detailed account of the expenses so paid shall, at regular intervals, be presented with verified vouchers, itemized and supported by receipted bills, or other information as may be required by the state auditor and auditor-general as evidence of payment, which shall be subject to audit and approval as other state claim vouchers. No payments shall be made in advance of the proper presentation of claim vouchers to the state auditor and the issuance of a state warrant on the state treasury by any of the institutions covered by §§ 4-5-2 to 4-5-4, inclusive, except as authorized herein.
Source: SL 1953, ch 315; SL 1955, ch 257; SDC Supp 1960, § 55.2205-1; SL 1965, ch 242, § 1.
4-5-4.1. Limitation of warrants on institutions' funds--Diversion of other funds prohibited--Proration of income. No warrants shall be drawn in excess of the funds made available in the institutions' funds by the Board of Regents and at no time shall any money from other funds be diverted to the use of the institutions' funds. The state investment officer shall prorate all income to the institutions as required by § 4-5-30.
Source: SL 1977, ch 37, § 1; SL 1985, ch 33, § 34.
4-5-4.2. Repealed by SL 1985, ch 33, § 35.
4-5-5. Investment of political subdivision funds--Funds subject to provisions. "Public funds" in §§ 4-5-6 to 4-5-11, inclusive, shall include all general, special, and other funds, regardless of source or purpose, that may now or hereafter be owned, held, or administered by any political subdivision of this state, including counties, municipalities, townships, and school districts, or by any officer, commission, board, bureau, or agency of the political subdivision.
Source: SL 1945, ch 359, § 1; SDC Supp 1960, § 48.0507; SL 1961, ch 258, § 1; SL 1967, ch 237, § 1.
4-5-6.1. Investment of public funds not needed for current operating expenses--Conditions. In lieu of or in addition to other statutory authorization for the investment of public funds, any public funds that are not needed for current operating expenses may be invested in accordance with the following conditions:
(1) The public funds shall initially be placed by the public funds depositor in a bank located in this state which offers Federal Deposit Insurance Corporation insurance on its deposits;
(2) The selected bank shall arrange for the deposit of the public funds in one or more federally insured financial institutions wherever located in the United States, for the account of the public funds depositor;
(3) On the same date that the public funds are deposited pursuant to subdivision (2) of this section, the selected bank shall receive an amount of deposits from customers of other federally insured financial institutions equal to the amount of the public funds initially placed by the public funds depositor;
(4) Each such deposit shall be insured by the Federal Deposit Insurance Corporation;
(5) The selected bank shall act as custodian for the public funds depositor with respect to the deposits placed in the depositor's account.
Source: SL 2004, ch 61, § 1; SL 2012, ch 31, § 1.
4-5-7. Superseded.
4-5-8. Investment policies for local funds determined by governing board. Investments of public funds as defined in § 4-5-5 shall be made only after the adoption of a proper resolution by the governing board of such county, municipality, township, or school district. Such resolution shall state the investment policies to be followed by the treasurer thereof.
Source: SL 1945, ch 359, § 2; SDC Supp 1960, § 48.0507; SL 1961, ch 258, § 1; SL 1967, ch 237, § 1; SL 1972, ch 25.
4-5-9. Custody or deposit of investments--Exception--Credit of interest earned. Except for investments authorized by subdivision 4-5-6(c), all investments made pursuant to §§ 4-5-5, 4-5-6, 4-5-8, 4-5-23, and 4-5-28 shall be in the physical custody of the political subdivision or may be deposited in a safekeeping account with any bank or trust company designated by the political subdivision as its fiscal agent. The interest earned shall be credited to the respective fund or the general fund.
Source: SL 1945, ch 359, § 3; SDC Supp 1960, § 48.0507; SL 1961, ch 258, § 1; SL 1967, ch 237, § 1; SL 1988, ch 44, § 2.
4-5-12. State Investment Council continued. The State Investment Council is hereby continued.
Source: SL 1971, ch 27, § 1; SL 1974, ch 38, § 1.
4-5-14. Qualifications of council members--Restrictions on business and political activities. The members of the State Investment Council shall be qualified by training and experience in the field of investment or finance. During tenure as a member of the State Investment Council, no member of the council nor the firm of any member may engage in the sale of marketable or public securities to the state or to any fund thereof. Nor may any member benefit directly or indirectly from any transaction made by the state investment officer. Nor may any member hold any office, position, or employment in any political party. Except as provided in § 4-5-14.1, the council may not enter into any contract or transaction with any firm or business in which a council member serves as a principal, shareholder, trustee, director, officer, employee, agent, or independent contractor.
Source: SL 1971, ch 27, § 4; SL 2003, ch 28, § 1.
4-5-14.1. Exceptions to § 4-5-14. The provisions of §§ 4-5-14 and 4-5-14.1, inclusive, do not prohibit a transaction that:
(1) Affects the public generally, and the council member's personal interest is only affected by virtue of being a member of the general public; or
(2) Affects participants in the South Dakota Retirement System generally, and the council member's personal interest is only affected by virtue of being a participant in the South Dakota Retirement System; or
(3) Involves the acceptance of deposits under a statewide certificate of deposit program made generally available to South Dakota financial institutions or the sale of interests in the South Dakota Higher Education Savings Program authorized pursuant to chapter 13-63 even though the council member has an interest as a principal, shareholder, trustee, director, officer, employee, independent contractor, or advisor of a financial institution or firm that would accept such deposits or sell such interests, if the council member has disclosed such interest in such financial institution or firm to the council.
Source: SL 2003, ch 28, § 2.
4-5-15. Repealed by SL 1971, ch 23, § 2.
4-5-16. Removal of council member from office--Filling of vacancies. A member of the State Investment Council appointed by the Executive Board of the Legislative Research Council may be removed from office by the Executive Board of the Legislative Research Council, for cause, upon notice and opportunity to be heard at a public hearing. Any vacancy in the membership of the council occurring other than by expiration of term shall be filled in the same manner as the original appointment, but for the unexpired term only.
Source: SL 1971, ch 27, § 5; SL 1981, ch 28, § 2.
4-5-17. Election of chairman. The chairman and presiding officer of the State Investment Council shall be elected by majority vote of the council.
Source: SL 1971, ch 27, § 6.
4-5-18.1. Repealed by SL 1974, ch 38, § 4.
4-5-19. Appointment of state investment officer--Removal--Qualifications. The state investment officer shall be appointed by the State Investment Council upon a majority vote and shall serve without term, but he may be removed from office upon a majority vote of the State Investment Council. He shall be a person qualified, by training and investment experience, to direct the work of the Division of Investment.
Source: SL 1971, ch 27, §§ 9, 10; SL 1986, ch 42, § 2.
4-5-20. Investment officer to devote full time--Salary. The state investment officer shall devote his entire time and attention to the duties of his office, shall not be engaged in any other occupation or profession, nor shall he hold any other public office, appointive or elective. The salary of the state investment officer shall be set by the Executive Board of the Legislative Research Council.
Source: SL 1971, ch 27, § 9.
4-5-21. State employees' blanket bond coverage--Premium. Before the state investment officer, or other responsible employee of the Division of Investment shall enter upon his duties, he shall be included under the state employees' blanket bond, for an amount and for coverage as deemed best to protect the state's interest. The premium thereon shall not be chargeable to the officer or employee.
Source: SL 1971, ch 27, § 11.
4-5-23. Public funds to be invested by investment officer--Functions transferred--Agreements with risk-sharing entities. The state investment officer is responsible for the investment of the state public funds as defined in chapter 4-4. All functions, powers, and duties presently vested by law in any officer, official, employee, agency, or commission which relates to the investment of the state public funds and accounts enumerated in this section are transferred to the state investment officer. In addition, the state investment officer may enter into agreements for the investment of cash accounts, reserves, and surplus funds with public entities created for the purpose of risk sharing pursuant to chapter 1-24. These entities' investments shall be restricted as provided in § 4-5-26. The agreements shall provide for the transfer of money from the public entities investment pool to the investment council expense account as provided in § 4-5-30.
Source: SL 1971, ch 27, § 13; SL 1984, ch 30, § 2; SL 1997, ch 37, § 1; SL 1999, ch 20, § 2.
4-5-24. Omitted.
4-5-25. Monthly reports to investment officer of state transactions. It shall be the duty of the state treasurer and the state auditor to report monthly, or more often as determined by the state investment officer, to the state investment officer as to receipts, expenditures, and warrants paid, so that the state investment officer may be informed as to what moneys will be available for the purposes of §§ 4-5-12 to 4-5-39, inclusive.
Source: SL 1971, ch 27, § 22.
4-5-29. Investment officer authorized to make transactions--Duty to protect state interests. Subject to any limitations, conditions, and restrictions contained in policy making regulations approved by the State Investment Council or contained in state law or the State Constitution, the state investment officer may make purchases, sales, exchanges, and investments, for or on behalf of any of the funds referred to in § 4-5-23. The state investment officer shall see that moneys invested under the provisions of §§ 4-5-12 to 4-5-39, inclusive, are at all times handled in the best interests of the state.
4-5-29.1. Health care trust fund--Investment officer to calculate amount eligible for distribution--Transfer to state general fund. Pursuant to S.D. Const., Art. XII, § 5, the state investment officer shall determine the market value of the health care trust fund as of December 31, 2003, and each calendar year thereafter less the investment expenses transferred pursuant to § 4-5-30. The state investment officer shall calculate an amount equal to four percent of that market value, without invading principal, as eligible for distribution. For the purpose of this section, the term, principal, means the sum of all contributions to the fund. Beginning with the distribution in fiscal year 2008, the market value shall be determined by adding the market value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first, and dividing the sum by sixteen. Upon notice of that amount by the state investment officer, the state treasurer shall transfer the amount from the health care trust fund to the state general fund as soon as practicable after July first of the next fiscal year.
4-5-30. Pooling of cash accounts--Certification by Appropriations Committee--Prorating of income--Transfer of money to investment council expense account. The state investment officer, utilizing the facilities of the state budgetary accounting system, shall pool cash accounts within the funds enumerated in § 4-5-23. The Appropriations Committee of the Legislature, upon recommendations from the commissioner of finance and management, shall certify those funds which are to participate in the interest income of the pooled investments. The state investment officer shall credit the gain or interest due as a result of investments made pursuant to § 4-5-29 on a pro rata basis to the participating funds in the same ratio as the average daily cash balance of each fund bears to the total average cash balance of all funds.
4-5-30.1. Repealed by SL 2015, ch 37, § 1, eff. Mar. 13, 2015.
4-5-31. Physical custody of securities purchased--Deposit with fiscal agent. All securities purchased shall be in the physical custody of the state treasurer who may, with the approval of the State Investment Council, deposit with a fiscal agent the securities as he shall consider advisable to be held in safekeeping by said agent for collection of principal and interest.
Source: SL 1971, ch 27, § 23.
4-5-34. Proceedings to collect principal or interest on investments--Refunding of securities held. In the event of default in the payment of principal of, or interest on, any investment made, the investment council is authorized to institute the proper proceedings to collect the matured principal or interest and may accept for exchange purposes refunding bonds or other evidences of indebtedness at interest rates to be agreed upon with the obligor.
Source: SL 1971, ch 27, § 19.
4-5-35. Post-audit of investment transactions--Annual report of auditor-general. The state auditor-general shall be responsible for conducting a continuous post-audit of the investment transactions of the state, and shall submit annually a special report on his findings to the State Investment Council and to the appropriate legislative committee.
Source: SL 1971, ch 27, § 25.
4-5-38. Severability of provisions. If any part of §§ 4-5-12 to 4-5-39, inclusive, is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of said sections is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
Source: SL 1971, ch 27, § 28.
4-5-39. Short title. Sections 4-5-12 to 4-5-39, inclusive, may be cited as the "Investment of State Funds Law."
Source: SL 1971, ch 27, § 29.
4-5-43. Obligation to purchase--Enforceability. The obligation of the State Investment Council to purchase any general obligation funding bonds pursuant to any agreement or arrangement described in § 4-5-40 is not enforceable to the extent that the principal amount of such general obligation funding bonds would cause an eligible participating school district to be in violation of the limitations on indebtedness of school districts provided for in Article XIII, § 4 of the Constitution.
Source: SL 1998, ch 24, § 4.
4-5-44. Cost of participation. The participation of the State Investment Council and the state investment officer in the tax anticipation note program of the Health and Educational Facilities Authority established under § 1-16A-75 is hereby determined to be in the public interest and for the benefit and maintenance of the public schools and for the equal benefit of and in the best interest of the people of the state and shall be at no cost to the school districts, the Health and Educational Facilities Authority or any other participant of the program.
Source: SL 1998, ch 24, § 5.
4-5-45, 4-5-46. Repealed by SL 2015, ch 39, §§ 3, 4.
4-5-47. Investment of trust fund containing proceeds from sale of state cement enterprises. The State Investment Council as provided in § 4-5-12 is responsible for the investment of the trust fund containing the net proceeds from the sale of state cement enterprises. The investment of such funds is not restricted by the provisions of § 4-5-26, but is governed by the provisions of § 4-5-27.
Source: SL 2001, ch 25, § 3; SDCL § 5-17-42; SL 2010, ch 32, § 8.
4-5-51. Updating scrutinized companies list. The State Investment Council shall update the scrutinized companies list each quarter based on continuing information.
Source: SL 2010, ch 27, § 4.
4-5-52. Procedures with respect to companies on scrutinized companies list. The State Investment Council shall use the following procedures with respect to companies on the scrutinized companies list:
(2) If, within ninety days following the State Investment Council's first engagement with a company, that company publicly announces its commitment to substantial action specific to Iran, that company shall be removed from the scrutinized companies list and the provisions of §§ 4-5-48 to 4-5-60, inclusive, cease to apply to it unless it resumes active business operations in Iran.
Source: SL 2010, ch 27, § 5.
4-5-53. Divestiture of securities in companies with scrutinized business operations. If, after ninety days following the State Investment Council's first engagement with a company pursuant to § 4-5-52, the company continues to have scrutinized business operations, and only while the company continues to have scrutinized business operations, the State Investment Council shall sell, redeem, divest, or withdraw all publicly traded securities of the company, according to the following schedule:
4-5-54. Acquisition of securities in companies with scrutinized business operations prohibited. The State Investment Council may not acquire securities of companies on the scrutinized companies list that have scrutinized business operations, except as provided in §§ 4-5-48 to 4-5-60, inclusive.
Source: SL 2010, ch 27, § 7.
4-5-55. Exemption from divestiture requirements. If the federal government excludes a company from its present or any future federal sanctions relating to Iran, that company is exempt from the divestment requirements and the investment prohibitions in §§ 4-5-48 to 4-5-60, inclusive.
Source: SL 2010, ch 27, § 8.
4-5-56. Inapplicability to certain investments. The provisions of §§ 4-5-48 to 4-5-60, inclusive, do not apply to any of the following:
Source: SL 2010, ch 27, § 9.
4-5-59. Circumstances under which §§ 4-5-48 to 4-5-60, inclusive, become inoperative. The provisions of §§ 4-5-48 to 4-5-60, inclusive, cease to be operative if either of the following occurs:
(2) The President of the United States determines and certifies that state legislation similar to §§ 4-5-48 to 4-5-60, inclusive, interferes with the conduct of United States foreign policy.
Source: SL 2010, ch 27, § 12.
4-5-60. Construction with other state law. The State Investment Council is exempt from any statutory or common law obligations that conflict with actions taken in compliance with §§ 4-5-48 to 4-5-59, inclusive, including all good faith determinations regarding companies as required by §§ 4-5-48 to 4-5-59, inclusive, including any obligations regarding the choice of asset managers, investment funds, or investments for the State Investment Council's securities portfolios.