Changes to Existing Law

The employer's reserve ratio for calendar year 2018 and each year thereafter is5 the result of the balance of credits existing in the employer's experience-rating account as of6 June thirtieth preceding the year the rate is to be calculated divided by the total taxable payroll7 of the employer for the preceding three fiscal years. The employer's experience-rating account8 balance for the purpose of this section is the balance on July thirty-first of the year preceding9 the year rates are calculated and is the difference between the contributions paid through July10 thirty-first and the benefits paid through the preceding June thirtieth. Column "A"12Column "B" Contribution Rate13Reserve Ratio Schedule A14Schedule B 9.45%159.35%Less than -7.00% 100 copies were printed on recycled paper by the South DakotaLegislative Research Council at a cost of $.167 per page.v Insertions into existing statutes are indicated by underscores.Deletions from existing statutes are indicated by overstrikes. - 2 -HB 1034 8.95%18.85%-7.00% and Less than -6.50% 8.45%28.35%-6.50% and Less than -6.00% 7.95%37.85%-6.00% and Less than -5.50% 7.45%47.35%-5.50% and Less than -5.00% 6.95%56.85%-5.00% and Less than -4.50% 6.45%66.35%-4.50% and Less than -4.00% 5.95%75.85%-4.00% and Less than -3.50% 5.45%85.35%-3.50% and Less than -3.00% 4.95%94.85%-3.00% and Less than -2.50% 4.45%104.35%-2.50% and Less than -2.00% 3.95%113.85%-2.00% and Less than -1.50% 3.45%123.35%-1.50% and Less than -1.00% 2.95%132.85%-1.00% and Less than -0.75% 2.45%142.35%-0.75% and Less than -0.50% 1.95%151.85%-0.50% and Less than -0.25% 1.45%161.35%-0.25% and Less than 0.00% 0.95%170.85%0.00% and Less than 0.50% 0.70%180.60%0.50% and Less than 0.75% 0.55%190.45%0.75% and Less than 1.00% 0.35%200.25%1.00% and Less than 1.25% 0.25%210.15%1.25% and Less than 1.50% 0.15%220.05%1.50% and Less than 1.75% 0.05%230.00%1.75% and Less than 2.25% 0.00%240.00%2.25% and Over The contribution rates provided in this section apply to taxable wages paid on and after January 1, 2018, to December 31, 2019, inclusive.

Each employer eligible for experience-rating as defined in § 61-5-24 on the10 computation date for the year, shall also pay an administrative fee on wages as defined by this11 title. If an employer's reserve ratio, as determined pursuant to § 61-5-25.4 through calendar year 2019 and pursuant to section 2 of this Act for each year thereafter, is less than two and one- quarter percent, an administrative fee of two hundredths percent shall be paid by the employer. The terms and conditions of this title that apply to the payment and collection of15 contributions also apply to the payment and collection of the administrative fee. Proceeds from16 the administrative fee shall be deposited in the clearing account of the unemployment17 compensation fund for clearance only and may not become part of the fund. After clearance, the18 money derived from the administrative fee payments, less refunds made pursuant to the19 provisions of this title, shall be deposited in the employment security administration fund for20 expenditure as provided in § 61-3-24. No administrative fee payment may be credited to the21 employer's experience-rating account nor may be deducted in whole or in part by any employer22 from the wages of individuals in its employ. The administrative fee provided in this section applies to taxable wages paid on and after24 January 1, 2018.25 - 5 -HB 1034

Employers required by this title to pay contributions, except employers pursuant2 to chapter 61-5A, that reimburse the unemployment compensation trust fund for benefits paid3 in lieu of contributions, shall also pay an employer's investment in South Dakota's future fee, hereinafter referred to as the, investment fee, on wages as defined by this title. The fee rate for5 employers not eligible for experience rating, as defined in § 61-5-24, shall be seventy6 hundredths percent through calendar year 2006 and fifty-five hundredths percent on and after7 January 1, 2007. If an employer is eligible for experience rating, the employer's reserve ratio8 shall be determined pursuant to § 61-5-25.3 through calendar year 2017 and, pursuant to § 61-5- 25.4 for calendar year years 2018 and 2019, and pursuant to section 2 of this Act for calendar year 2020 and each year thereafter, and the employer's investment fee rate shall be the rate11 appearing in column "A" on the same line the employer's reserve ratio appears in column "B" of the following rate schedules. schedule: From January 1, 1993, to December 31, 2006, inclusive: Column "A"15Column "B" Investment Fee Rate16Reserve Ratio 0.70%17 Less than 0.80% 0.60%180.80% and Less than 1.00% 0.50%191.00% and Less than 1.20% 0.40%201.20% and Less than 1.30% 0.30%211.30% and Less than 1.40% 0.20%221.40% and Less than 1.50% 0.10%231.50% and Less than 1.60% 0.00%241.60% and Over From January 1, 2007, to December 31, 2007, inclusive:25 - 6 -HB 1034 Column "A"1Column "B" Investment Fee Rate2Reserve Ratio 0.60%3Less than 1.00% 0.50%41.00% and Less than 1.20% 0.40%51.20% and Less than 1.30% 0.30%61.30% and Less than 1.40% 0.20%71.40% and Less than 1.50% 0.10%81.50% and Less than 1.60% 0.00%91.60% and Over From January 1, 2008, to December 31, 2008, inclusive: Column "A"11Column "B" Investment Fee Rate12Reserve Ratio 0.58%13Less than 1.00% 0.50%141.00% and Less than 1.20% 0.40%151.20% and Less than 1.30% 0.30%161.30% and Less than 1.40% 0.20%171.40% and Less than 1.50% 0.10%181.50% and Less than 1.60% 0.00%191.60% and Over From January 1, 2009, to December 31, 2009, inclusive: Column "A"21Column "B" Investment Fee Rate22Reserve Ratio 0.56%23Less than 1.00% 0.50%241.00% and Less than 1.20% 0.40%251.20% and Less than 1.30% 0.30%261.30% and Less than 1.40% 0.20%271.40% and Less than 1.50% - 7 -HB 1034 0.10%11.50% and Less than 1.60% 0.00%21.60% and Over From January 1, 2010, to December 31, 2010, inclusive: Column "A"4Column "B" Investment Fee Rate5Reserve Ratio 0.55%6Less than 1.00% 0.50%71.00% and Less than 1.20% 0.40%81.20% and Less than 1.30% 0.30%91.30% and Less than 1.40% 0.20%101.40% and Less than 1.50% 0.10%111.50% and Less than 1.60% 0.00%121.60% and Over Beginning January 1, 2011: Column "A"14Column "B" Investment Fee Rate15Reserve Ratio 0.53%16Less than 1.00% 0.50%171.00% and Less than 1.20% 0.40%181.20% and Less than 1.30% 0.30%191.30% and Less than 1.40% 0.20%201.40% and Less than 1.50% 0.10%211.50% and Less than 1.60% 0.00%221.60% and Over The terms and conditions of this title that apply to the payment and collection of23 contributions also apply to the payment and collection of the investment fee. Proceeds from the24 investment fee shall be deposited in the clearing account of the unemployment compensation25 fund for clearance only and may not become part of the fund. After clearance, the money26 - 8 -HB 1034 derived from the investment fee payments, less refunds made pursuant to the provisions of this1 title, shall be deposited in the employer's investment in South Dakota's future special revenue2 fund as provided for in § 61-5-29.1. No investment fee payment may be credited to the3 employer's experience-rating account nor may be deducted in whole or in part by any employer4 from the wages of individuals in its employ. The investment fee rate may not be increased over the applicable 1987 investment fee rate6 for any employer with a positive balance in the employer's experience-rating account on the7 computation date, as established in rules promulgated by the secretary of labor and regulation8 pursuant to chapter 1-26, for the current year and the year preceding the current year. The investment rates provided in this section apply to and are retroactive to taxable wages10 paid on and after January 1, 1993.11