61% of South Dakota Voters Approve Amendment K to Boost Fund Returns

Voters Hand South Dakota Investment Council Control of Unclaimed Property

South Dakota voters on Tuesday passed a ballot measure permitting the state Investment Council to take charge of funds held within an unclaimed property trust fund. With 87% of the votes counted statewide by about 1:15 a.m. Central on Wednesday, 61% of the votes were in favor of Amendment K, and 39% were against it, according to reporting by South Dakota Searchlight.

State lawmakers had already begun the process of transitioning unclaimed property proceeds into the dedicated fund, withdrawing only a portion each year to help balance the state budget. Because the fund historically earned minimal interest sitting in standard accounts, lawmakers needed voter approval via Amendment K to place the capital directly under the management of the state Investment Council. The council intends to invest the money for higher returns, echoing the strategy it uses for the state’s public employee retirement system and other trust funds benefiting schools, healthcare, and state operations.

Lawmakers Unanimously Approve Ballot Measure for State Funds

State Sen. Taffy Howard, a Republican from Rapid City, sponsored the bill that state lawmakers unanimously approved to send Amendment K to the ballot, backed by the state’s Bureau of Finance and Management and the State Treasurer’s Office. Howard spoke in the state Senate at the Capitol in Pierre on Feb. 11, 2026, advocating for the measure.

“I’m just happy to see that it’s passing easily,” Howard said Tuesday evening. “I would have loved to have seen it be 100%, obviously. It did pass the Legislature unanimously. But just as long as it passes and we can earn more money for the citizens of the state, that’s what really matters.”

State Treasurer Josh Haeder also praised the outcome as election returns rolled in late Tuesday night, noting appreciation for voters helping the initiative get across the finish line.

Unclaimed property consists of an array of abandoned or forgotten private assets, including bank accounts, stocks, life insurance payouts, uncashed checks, and the contents of safe deposit boxes. Under state rules, property is transferred to the state after three years if banks or other holders cannot locate the rightful owners. While the state continues trying to connect owners with their property through a searchable website, many individuals never make a claim.

Annual unclaimed property receipts surged to new highs in recent years, topping $300 million during the 2025 fiscal year. A large wave of private assets left behind during pandemic-related moves, along with Bancorp relocating its national headquarters to Sioux Falls, largely drove this sharp increase. Lawmakers grew concerned about the immense potential liability this sudden cash influx created for the state, as legitimate owners or their heirs retain the right to reclaim their funds at any moment, even if the government has already utilized the money.

To guard against that liability and bring predictability to state revenues, lawmakers passed two bills last year. One law transitioned all unclaimed property revenue into the trust fund while strictly limiting annual withdrawals. Amendment K successfully capped off that legislative strategy by authorizing professional investment oversight for the pooled funds, ensuring the money remains available for future claimants while generating higher returns for the public good.