The bill amends Section 61-5-29 of South Dakota law regarding the employer's investment in South Dakota's future fee. It specifies that employers required to pay contributions, with the exception of those under chapter 61-5A, must also pay this investment fee on wages as defined by the law. The fee rates are set at seventy hundredths percent through the end of 2006 and fifty-five hundredths percent starting January 1, 2007, for employers not eligible for experience rating. For those eligible, the fee rate will depend on their reserve ratio as determined by various sections of the law for different calendar years. The bill also clarifies that the investment fee proceeds will be deposited into the unemployment compensation fund's clearing account and later into the employer's investment fund, with specific restrictions on how these payments can be credited or deducted.

Additionally, the bill includes a provision that Section 61-5-29 will be repealed on July 1, 2026. This indicates a planned phase-out of the investment fee, signaling a significant change in the funding structure for the unemployment compensation system in South Dakota. The bill aims to streamline the process and potentially alleviate the financial burden on employers while ensuring that the necessary funds for unemployment compensation are still managed appropriately until the repeal date.

Statutes affected:
Introduced, 01/30/2025: 61-5-29