2001 Amendment Text and Attorney General Explanation
Special Election April 10, 2001
The following amendments to the State Constitution are submitted
to the voters by the Legislature. The amendments will not become effective
unless approved by majority vote.
Title: An amendment to Article XIII of the South Dakota
Constitution authorizing the creation and administration of a trust fund for
proceeds of the sale of the State Cement Plant.
Attorney General Explanation:
The South Dakota Legislature has authorized the sale of the
State Cement Plant for approximately $252 million dollars.
If adopted, Constitutional Amendment A places the net proceeds
from this sale into a trust fund. The South Dakota Investment Council is
required to invest the trust fund. Twelve million dollars from the trust fund
will be annually transferred into the state general fund. The principal of the
trust fund may not be expended except for this $12 million annual transfer. If
there are additional earnings on the trust fund after the $12 million annual
transfer, the Legislature is required to make a limited annual appropriation to
support education.
If Constitutional Amendment A is not adopted, the net proceeds
of the Cement Plant sale will be deposited in the state general fund.
A vote "Yes" will place the net proceeds from the sale of the
State Cement Plant into a trust fund, provide for investment of the fund, and
authorize annual transfers of money from the trust fund.
A "No" vote will result in the net proceeds from the sale of the
State Cement Plant being deposited into the state general fund.
Full Text:
Section 1. That Article XIII, of the Constitution of the State
of South Dakota, be amended by adding thereto a NEW SECTION to read as follows:
§ 20. The net proceeds derived from the sale of state cement
enterprises shall be deposited by the South Dakota Cement Commission in a trust
fund hereby created to benefit the citizens of South Dakota. The South Dakota
Investment Council or its successor shall invest the trust fund in stocks,
bonds, mutual funds, and other financial instruments as provided by law. Each
fiscal year beginning in fiscal year 2001, a transfer of twelve million dollars
shall be made from the trust fund to the state general fund as provided by law.
Section 2. That Article XIII, of the Constitution of the State
of South Dakota, be amended by adding thereto a NEW SECTION to read as follows:
§ 21. Except as provided in Article XIII, section 20 of the
Constitution of the State of South Dakota, the original principal of the trust
fund shall forever remain inviolate. However, the Legislature shall, by
appropriation, make distributions from the difference between the twelve million
dollar annual general fund transfer and five percent of the market value of the
trust fund for the support of education, but not for the replacement of state
aid to general education or special education, if the increase in the market
value of the trust fund in that fiscal year was sufficient to maintain the
original principal of the trust fund after such distributions. Beginning with
fiscal year 2006, the market value of the trust fund shall be determined by
adding the market value of the trust fund at the end of the sixteen most recent
calendar quarters, and dividing that sum by sixteen.
Title: An amendment to Article XII of the South Dakota
Constitution authorizing the creation and administration of trust funds for
health care and education.
Attorney General Explanation:
Constitutional Amendment B establishes two trust funds. The
health care trust fund would be established with funds from the
intergovernmental transfer fund. Money in this trust fund is dedicated to health
care related programs. The education enhancement trust fund would be established
with present and future tobacco settlement funds, proceeds from any sale of the
right to receive payments from the tobacco settlement, and funds in the
youth-at-risk trust fund. Money in this trust fund is dedicated to education
enhancement programs.
The Legislature may appropriate additional money into these
trust funds. The South Dakota Investment Council is required to invest these
trust funds.
Beginning in fiscal year 2003, the Legislature is required to
distribute money from the trust funds. A three-fourths vote of the Legislature
is required to appropriate the principal of the trust funds, or to use the trust
funds for other purposes.
A vote "yes" will establish the health and education trust
funds, provide for investment of the funds, and authorize the distribution of
money from these trust funds.
A vote "no" will leave the Constitution as it is.
Full Text:
Section 1. That Article XII of the Constitution, of the State of
South Dakota, be amended by adding thereto NEW SECTIONS to read as follows:
§ 5. There is hereby created in the state treasury a trust fund
named the health care trust fund. The state treasurer shall deposit into the
health care trust fund any funds on deposit in the intergovernmental transfer
fund as of July 1, 2001, and thereafter any funds appropriated to the health
care trust fund as provided by law. The South Dakota Investment Council or its
successor shall invest the health care trust fund in stocks, bonds, mutual
funds, and other financial instruments as provided by law. Beginning in fiscal
year 2003, and each year thereafter, the state treasurer shall make a
distribution from the health care trust fund into the state general fund to be
appropriated by law for health care related programs. The calculation of the
distribution shall be defined by law and may promote growth of the fund and a
steadily growing distribution amount. The health care trust fund may not be
diverted for other purposes nor may the principal be invaded unless appropriated
by a three-fourths vote of all the members-elect of each house of the
Legislature.
§ 6. There is hereby created in the state treasury a trust fund
named the education enhancement trust fund. The state treasurer shall deposit
into the education enhancement trust fund any funds received as of July 1, 2001,
and funds received thereafter by the state pursuant to the Master Settlement
Agreement entered into on November 23, 1998, by the State of South Dakota and
major United States tobacco product manufacturers or the net proceeds of any
sale or securitization of rights to receive payments pursuant to the Master
Settlement Agreement, any funds in the youth-at- risk trust fund as of July 1,
2001, and thereafter any funds appropriated to the education enhancement trust
fund as provided by law. The South Dakota Investment Council or its successor
shall invest the education enhancement trust fund in stocks, bonds, mutual
funds, and other financial instruments as provided by law. Beginning in fiscal
year 2003, and each year thereafter, the state treasurer shall make a
distribution from the education enhancement trust fund into the state general
fund to be appropriated by law for education enhancement programs. The
calculation of the distribution shall be defined by law and may promote growth
of the fund and a steadily growing distribution amount. The education
enhancement trust fund may not be diverted for other purposes nor may the
principal be invaded unless appropriated by a three-fourths vote of all the
members-elect of each house of the Legislature.
Section 2. The provisions of section 2 of this Joint Resolution
(section 1 of this amendment) shall be effective on July 1, 2001.
