South Dakota 2025 Regular Session

South Dakota Senate Bill SB26 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25.195.12 100th Legislative Session 26
	1	+	25.195.11 100th Legislative Session 26
2	2
3	3
4	4		2025 South Dakota Legislature
5	5		Senate Bill 26
6		-	ENROLLED
7		-
8		-	AN ACT
9	6
10	7
11		-	ENTITLED An Act to reduce employer contribution rates and increase the
12		-	administrative fee rate for reemployment assistance.
	8	+
	9	+
	10	+
	11	+
	12	+	Introduced by: The Chair of the Committee on Commerce and Energy at the request of the Department of Labor and
	13	+	Regulation
	14	+
	15	+	Underscores indicate new language.
	16	+	Overstrikes indicate deleted language.
	17	+	An Act to reduce employer contribution rates and increase the administrative fee
	18	+	rate for reemployment assistance.
13	19		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
14	20		Section 1. That § 61-5-25.6 be AMENDED:
15	21		61-5-25.6. The employer's reserve ratio for calendar year 2024 and each year
16	22		thereafter is the result of the balance of credits existing in the employer's experience-
17	23		rating account as of June thirtieth preceding the year the rate is to be calculated, divided
18	24		by the total taxable payroll of the employer for the preceding three fiscal years. The
19	25		employer's experience-rating account balance for the purpose of this section is the balance
20	26		on July thirty-first of the year preceding the year rates are calculated and is the difference
21	27		between the contributions paid through July thirty-first and the benefits paid through the
22	28		preceding June thirtieth.
23	29		Column "A" Column "B"
24	30		Contribution Rate Reserve Ratio
25	31		Schedule A Schedule
26	32		B
27	33		Schedule C
28	34		9.45% 9.30% 8.80% Less than -7.00%
29	35		8.95% 8.80% 8.30% -7.00% and Less than -6.50%
30	36		8.45% 8.30% 7.80% -6.50% and Less than -6.00%
31	37		7.95% 7.80% 7.30% -6.00% and Less than -5.50%
32	38		7.45% 7.30% 6.80% -5.50% and Less than -5.00%
33	39		6.95% 6.80% 6.30% -5.00% and Less than -4.50%
34	40		6.45% 6.30% 5.80% -4.50% and Less than -4.00%
35		-	5.95% 5.80% 5.30% -4.00% and Less than -3.50% 25.195.12 2 26
36		-	SB26 ENROLLED
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	63	+	23 25.195.11 2 26
	64	+	Underscores indicate new language.
	65	+	Overstrikes indicate deleted language.
	66	+	5.95% 5.80% 5.30% -4.00% and Less than -3.50%
37	67		5.45% 5.30% 4.80% -3.50% and Less than -3.00%
38	68		4.95% 4.80% 4.30% -3.00% and Less than -2.50%
39	69		4.45% 4.30% 3.80% -2.50% and Less than -2.00%
40	70		3.95% 3.80% 3.30% -2.00% and Less than -1.50%
41	71		3.45% 3.30% 2.80% -1.50% and Less than -1.00%
42	72		2.95% 2.80% 2.30% -1.00% and Less than -0.75%
43	73		2.45% 2.30% 1.80% -0.75% and Less than -0.50%
44	74		1.95% 1.80% 1.30% -0.50% and Less than -0.25%
45	75		1.45% 1.30% 0.80% -0.25% and Less than 0.00%
46	76		0.95% 0.80% 0.30% 0.00% and Less than 0.50%
47	77		0.70% 0.55% 0.05% 0.50% and Less than 0.75%
48	78		0.55% 0.40% 0.00% 0.75% and Less than 1.00%
49	79		0.35% 0.20% 0.00% 1.00% and Less than 1.25%
50	80		0.25% 0.10% 0.00% 1.25% and Less than 1.50%
51	81		0.15% 0.00% 0.00% 1.50% and Less than 1.75%
52	82		0.05% 0.00% 0.00% 1.75% and Less than 2.25%
53	83		0.00% 0.00% 0.00% 2.25% and Over
54		-	The contribution rates provided in this section apply to taxable wages paid ~~from~~
55		-	January 1, 2024, to December 31, 2025, inclusive.
	84	+	The contribution rates provided in this section apply to taxable wages paid on and
	85	+	after from January 1, 2024, to December 31, 2025, inclusive.
56	86		Section 2. That a NEW SECTION be added to chapter 61-5:
57	87		The employer's reserve ratio for calendar year 2026 and each year thereafter is
58	88		the result of the balance of credits existing in the employer's experience-rating account
59	89		as of June thirtieth preceding the year the rate is to be calculated, divided by the total
60	90		taxable payroll of the employer for the preceding three fiscal years. The employer's
61	91		experience-rating account balance for the purpose of this section is the balance on July
62	92		thirty-first of the year preceding the year rates are calculated and is the d ifference
63	93		between the contributions paid through July thirty-first and the benefits paid through the
64	94		preceding June thirtieth.
65	95		Column "A" Column "B"
66		-	Contribution Rate Reserve Ratio 25.195.12 3 26
67		-	SB26 ENROLLED
	96	+	1
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	125	+	30 25.195.11 3 26
	126	+	Underscores indicate new language.
	127	+	Overstrikes indicate deleted language.
	128	+	Contribution Rate Reserve Ratio
68	129		Schedule A Schedule B Schedule C
69	130		9.39% 9.24% 8.52% Less than -7.00%
70	131		8.89% 8.74% 8.02% -7.00% and Less than -6.50%
71	132		8.39% 8.24% 7.52% -6.50% and Less than -6.00%
72	133		7.89% 7.74% 7.02% -6.00% and Less than -5.50%
73	134		7.39% 7.24% 6.52% -5.50% and Less than -5.00%
74	135		6.89% 6.74% 6.02% -5.00% and Less than -4.50%
75	136		6.39% 6.24% 5.52% -4.50% and Less than -4.00%
76	137		5.89% 5.74% 5.02% -4.00% and Less than -3.50%
77	138		5.39% 5.24% 4.52% -3.50% and Less than -3.00%
78	139		4.89% 4.74% 4.02% -3.00% and Less than -2.50%
79	140		4.39% 4.24% 3.52% -2.50% and Less than -2.00%
80	141		3.89% 3.74% 3.02% -2.00% and Less than -1.50%
81	142		3.39% 3.24% 2.52% -1.50% and Less than -1.00%
82	143		2.89% 2.74% 2.02% -1.00% and Less than -0.75%
83	144		2.39% 2.24% 1.52% -0.75 and Less than -0.50%
84	145		1.89% 1.74% 1.02% -0.50% and Less than -0.25%
85	146		1.39% 1.24% 0.52% -0.25% and Less than 0.00%
86	147		0.89% 0.74% 0.02% 0.00% and Less than 0.50%
87	148		0.64% 0.49% 0.00% 0.50% and Less than 0.75%
88	149		0.49% 0.34% 0.00% 0.75% and Less than 1.00%
89	150		0.29% 0.14% 0.00% 1.00% and Less than 1.25%
90	151		0.19% 0.04% 0.00% 1.25% and Less than 1.50%
91	152		0.09% 0.00% 0.00% 1.50% and Less than 1.75%
92	153		0.00% 0.00% 0.00% 1.75% and Less than 2.25%
93	154		0.00% 0.00% 0.00% 2.25% and Over
94	155		The contribution rates provided in this section apply to taxable wages paid on and
95		-	after ~~January~~ 1, 2026.
	156	+	after July 1, 2026.
96	157		Section 3. That § 61-5-28.1 be AMENDED:
97		-	61-5-28.1. Each employer eligible for experience rating, as provided for in § 61-
98		-	5-24, on the computation date for the year, shall also pay an administrative fee on wages,
99		-	as defined by this title. If an employer's reserve ratio, as determined pursuant to § 61-5-
100		-	25.4 through calendar year 2019, pursuant to § 61-5-25.5 for calendar year 2020 through
101		-	calendar year 2023, and pursuant to § 61-5-25.6 for calendar year 2024 through calendar 25.195.12 4 26
102		-	SB26 ENROLLED
103		-	year 2025, is less than two and one -quarter percent, an administrative fee of two-
104		-	hundredths percent must be paid by the employer. For calendar year 2026 and each year
105		-	thereafter, an administrative fee of eight-hundredths percent must be paid by the
106		-	employer.
	158	+	61-5-28.1. Each employer eligible for experience rating, as defined provided for
	159	+	in § 61-5-24, on the computation date for the year, shall also pay an administrative fee
	160	+	on wages, as defined by this title. If an employer's reserve ratio, as determined pursuant
	161	+	to § 61-5-25.4 through calendar year 2019, pursuant to § 61-5-25.5 for calendar year
	162	+	1
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	168	+	7 25.195.11 4 26
	169	+	Underscores indicate new language.
	170	+	Overstrikes indicate deleted language.
	171	+	2020 through calendar year 2023, and pursuant to § 61-5-25.6 for calendar year 2024
	172	+	and each year thereafter through calendar year 2025, is less than two and one-quarter
	173	+	percent, an administrative fee of two-hundredths percent shall must be paid by the
	174	+	employer. For calendar year 2026 and each year thereafter, an administrative fee of eight-
	175	+	hundredths percent must be paid by the employer.
107	176		The terms and conditions of this title that apply to the payment and collection of
108		-	contributions also apply to the payment and collection of the administrative fee. The
109		-	department must deposit the proceeds from the administrative fee in the clearing account
110		-	of the unemployment compensation fund for clearance only. The proceeds may not
111		-	become part of the fund. After clearance, the department must deposit the money derived
112		-	from the administrative fee payments, less refunds made pursuant to the provisions of
113		-	this title, in the employment security administration fund for expenditure as provided for
114		-	in § 61-3-24. No administrative fee payment may be credited to the employer's experience
115		-	rating account, nor may the payment be deducted in whole or in part by any employer
116		-	from the wages of individuals in its employ.
	177	+	contributions also apply to the payment and collection of the administrative fee. Proceeds
	178	+	The department must deposit the proceeds from the administrative fee must be deposited
	179	+	in the clearing account of the unemployment compensation fund for clearance only and.
	180	+	The proceeds may not become part of the fund. After clearance, the department must
	181	+	deposit the money derived from the administrative fee payments, less refunds made
	182	+	pursuant to the provisions of this title, must be deposited in the employment security
	183	+	administration fund for expenditure as provided for in § 61-3-24. No administrative fee
	184	+	payment may be credited to the employer's experience rating account , nor may the
	185	+	payment be deducted in whole or in part by any employer from the wages of individuals
	186	+	in its employ.
117	187		The administrative fee provided in this section applies to taxable wages paid on
118	188		and after January 1, 2018.
119	189		Section 4. That § 61-5-29 be AMENDED:
120	190		61-5-29. Employers required by this title to pay contributions, except employers
121	191		pursuant to chapter 61-5A, that reimburse the unemployment compensation trust fund
122	192		for benefits paid in lieu of contributions, shall also pay an employer's investment in South
123		-	Dakota's future fee, hereinafter referred to as the investment fee, on wages as defined by
124		-	this title. The fee rate for employers not eligible for experience rating, as provided for in
125		-	§ 61-5-24, must be seventy-hundredths percent through calendar year 2006 and fifty -
126		-	five hundredths percent on and after January 1, 2007. If an employer is eligible for
127		-	experience rating, the employer's reserve ratio must be determined pursuant to § 61-5-
128		-	25.3 through calendar year 2017, pursuant to § 61-5-25.4 for calendar years 2018 and
129		-	2019, pursuant to § 61-5-25.5 for calendar year 2020 through calendar year 2023,
130		-	pursuant to § 61-5-25.6 for calendar year 2024 through calendar year 2025, and pursuant
131		-	to section 2 of this Act for calendar year 2026 and each year thereafter, and the employer's
132		-	investment fee rate must be the rate appearing in column "A" on the same line the
133		-	employer's reserve ratio appears in column "B" of the following rate schedule:
	193	+	Dakota's future fee, hereinafter referred to as the, investment fee, on wages as defined
	194	+	by this title. The fee rate for employers not eligible for experience rating, as defined
	195	+	provided for in § 61-5-24, must be seventy hundredths seventy-hundredths percent
	196	+	through calendar year 2006 and fifty-five hundredths percent on and after January 1,
	197	+	2007. If an employer is eligible for experience rating, the employer's reserve ratio must
	198	+	be determined pursuant to § 61-5-25.3 through calendar year 2017, pursuant to § 61-5-
	199	+	25.4 for calendar years 2018 and 2019, pursuant to § 61-5-25.5 for calendar year 2020
	200	+	through calendar year 2023, and pursuant to § 61-5-25.6 for calendar year 2024 through
	201	+	calendar year 2025, and pursuant to section 2 of this Act for calendar year 2026 and each
	202	+	year thereafter, and the employer's investment fee rate must be the rate appearing in
	203	+	column "A" on the same line the employer's reserve ratio appears in column "B" of the
	204	+	following rate schedule:
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	238	+	34 25.195.11 5 26
	239	+	Underscores indicate new language.
	240	+	Overstrikes indicate deleted language.
134	241		Column "A" Column "B"
135		-	Investment Fee Rate Reserve Ratio 25.195.12 5 26
136		-	SB26 ENROLLED
	242	+	Investment Fee Rate Reserve Ratio
137	243		0.53% Less than 1.00%
138	244		0.50% 1.00% and Less than 1.20%
139	245		0.40% 1.20% and Less than 1.30%
140	246		0.30% 1.30% and Less than 1.40%
141	247		0.20% 1.40% and Less than 1.50%
142	248		0.10% 1.50% and Less than 1.60%
143	249		0.00% 1.60% and Over
144	250		The terms and conditions of this title that apply to the payment and collection of
145		-	contributions also apply to the payment and collection of the investment fee. ~~The~~
146		-	department shall deposit the proceeds from the investment fee in ~~the clearing account of~~
147		-	the unemployment compensation fund for clearance only. The ~~proceeds may not become~~
148		-	part of the fund. After clearance, the department must deposit ~~the money derived from~~
149		-	the investment fee payments, less refunds made pursuant to the ~~provisions of this title,~~
150		-	in the employer's investment in South Dakota's ~~future fund, as provided for in § 61-5-~~
151		-	29.1. No investment fee payment may be credited ~~to the employer's experience -rating~~
152		-	account, nor may the payment be deducted in whole ~~or in part by any employer from the~~
153		-	wages of individuals in its employ.
	251	+	contributions also apply to the payment and collection of the investment fee. Proceeds
	252	+	The department shall deposit the proceeds from the investment fee must be deposited in
	253	+	the clearing account of the unemployment compensation fund for clearance only and. The
	254	+	proceeds may not become part of the fund. After clearance, the department must deposit
	255	+	the money derived from the investment fee payments, less refunds made pursuant to the
	256	+	provisions of this title, must be deposited in the employer's investment in South Dakota's
	257	+	future fund, as provided for in § 61-5-29.1. No investment fee payment may be credited
	258	+	to the employer's experience-rating account, nor may the payment be deducted in whole
	259	+	or in part by any employer from the wages of individuals in its employ.
154	260		The investment fee rate may not be increased over the applicable 1987 investment
155	261		fee rate for any employer with a positive balance in the employer's experience -rating
156	262		account on the computation date, as established in rules promulgated by the secretary of
157		-	labor and regulation, in accordance with chapter 1-26, for the current year ~~and the year~~
158		-	preceding the current year.
	263	+	labor and regulation pursuant to, in accordance with chapter 1-26, for the current year
	264	+	and the year preceding the current year.
159	265		The investment rates provided in this section apply to and are retroactive to taxable
160		-	wages paid on and after January 1, 1993. 25.195.12 6 26
161		-	SB26 ENROLLED
162		-	An Act to reduce employer contribution rates and increase the administrative fee rate for
163		-	reemployment assistance.
164		-
165		-
166		-
167		-
168		-	I certify that the attached Act originated in
169		-	the:
170		-
171		-	Senate as Bill No. 26
172		-
173		-
174		-
175		-	Secretary of the Senate
176		-
177		-
178		-
179		-
180		-	President of the Senate
181		-
182		-	Attest:
183		-
184		-
185		-
186		-
187		-	Secretary of the Senate
188		-
189		-
190		-
191		-
192		-	Speaker of the House
193		-
194		-	Attest:
195		-
196		-
197		-
198		-
199		-
200		-	Chief Clerk
201		-
202		-
203		-
204		-	Senate Bill No. 26
205		-	File No. ____
206		-	Chapter No. ______
207		-
208		-
209		-
210		-	Received at this Executive Office
211		-	this _____ day of _____________,
212		-
213		-	2025 at ____________M.
214		-
215		-
216		-
217		-	By
218		-	for the Governor
219		-
220		-
221		-	The attached Act is hereby
222		-	approved this ________ day of
223		-	______________, A.D., 2025
224		-
225		-
226		-
227		-
228		-
229		-	Governor
230		-
231		-	STATE OF SOUTH DAKOTA ,
232		-	ss.
233		-	Office of the Secretary of State
234		-
235		-
236		-	Filed ____________, 2025
237		-	at _________ o'clock __M.
238		-
239		-
240		-
241		-
242		-
243		-	Secretary of State
244		-
245		-
246		-
247		-	By
248		-	Asst. Secretary of State
249		-
250		-
	266	+	wages paid on and after January 1, 1993.
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