The bill amends South Dakota's law regarding the employer's investment in South Dakota's future fee, specifically in section 61-5-29. It introduces a provision allowing employers to opt out of paying this fee unless they choose to opt in. The investment fee rate is 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. The bill also clarifies that the terms and conditions for the payment and collection of contributions apply to the investment fee, and it mandates that the proceeds from the fee be deposited into a specific fund after clearance.

Additionally, the bill establishes a new section requiring the department to create a form for employers to opt in or out of the fee. This form must be easily accessible and distributed to employers quarterly. Employers who do not opt in will be considered as having opted out and will not be subject to the fee or its associated terms. If an employer opts in, they will be subject to the fee's terms starting the following calendar quarter. The bill also outlines the process for employers wishing to change their opt-in or opt-out status, ensuring that they can do so with a new form submission.

Statutes affected:
Introduced, 01/29/2026: 61-5-29