61-5-46. Mandatory transfer of experience-rating account on transfer of business to another--Rate recalculation--Exception.
Notwithstanding any other provision of law, the following provisions apply with regard to assignment of rates and transfers of experience:
(1)If an employer transfers its organization, trade, or business, or a portion thereof, to another employer and, at the time of the transfer, there is substantially common ownership, management, or control of the two employers, then the unemployment experience attributable to the transferred organization, trade, or business shall be transferred to the employer to whom the business is so transferred. The rates of both employers shall be recalculated and made effective immediately upon the date of the transfer of the organization, trade, or business; and
(2)If a person who is not an employer under this Title at the time the person acquires the organization, trade, or business of an employer, the unemployment experience of the acquired business may not be transferred to the person if the secretary finds that the person acquired the business solely or primarily for the purpose of obtaining a lower rate of contributions. Instead, the person shall be assigned the applicable new employer rate under the provisions of §61-5-24. In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the secretary shall use objective factors which may include the cost of acquiring the business, whether the person continued the business enterprise of the acquired business, how long the business enterprise was continued, or whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to acquisition.
Source: SL 2005, ch 281, §2; SDCL §61-5-32.1; SL 2012, ch 252, §59.
Structure South Dakota Codified Laws
Title 61 - Reemployment Assistance
Chapter 05 - Employers' Contributions And Accounts
Section 61-5-1 - Employer subject to title for entire year.
Section 61-5-3 - Elective coverage of employer--Minimum period of coverage--Notice of termination.
Section 61-5-5 - Termination of elective coverage on notice by secretary.
Section 61-5-11 - Termination of coverage on application by employer no longer subject to title.
Section 61-5-15 - Termination of coverage on transfer of account to successor in business.
Section 61-5-17 - Termination of coverage on employer's cessation of business.
Section 61-5-18 - Provisions governing employers' contributions.
Section 61-5-23 - Rules establishing method of computing employers' contributions.
Section 61-5-25.1 - Employer's reserve ratio for 2007 through 2009.
Section 61-5-25.2 - Employer's contribution rates for 2010 through 2014.
Section 61-5-25.3 - Employer's reserve ratio--Contribution rates for 2015 through 2017.
Section 61-5-25.4 - Employer's reserve ratio--Contribution rates for 2018 through 2019.
Section 61-5-25.5 - Employer's reserve ratio--Contribution rates for 2020 and thereafter.
Section 61-5-27 - Reduced rate refused for delinquencies.
Section 61-5-28.1 - Administrative fee.
Section 61-5-29 - Investment fee.
Section 61-5-29.1 - Employer's investment in state's future fund--Purposes--Expenditures.
Section 61-5-31 - Interest on negative balance in employer's experience rating account.
Section 61-5-33 - Rights of appeal under political subdivision coverage.
Section 61-5-34 - Voluntary additional contributions credited to employer's account.
Section 61-5-35 - Contributions paid in accordance with rules.
Section 61-5-36 - Deduction of contributions from wages prohibited.
Section 61-5-37 - Contributions credited to experience-rating accounts.
Section 61-5-43 - Circumstance warranting return of experience-rating accounts to sellers.
Section 61-5-48 - Rules to implement application of § 61-5-46.
Section 61-5-49 - Definitions applicable to §§ 61-5-46 to 61-5-48.
Section 61-5-50 - Interpretation and application of §§ 61-5-46 to 61-5-49 to meet federal standards.
Section 61-5-51 - Waiver of mandatory transfer of experience-rating account--Conditions.
Section 61-5-52 - Procedures to identify transfer or acquisition of business.
Section 61-5-53 - Pooled fund maintained by department--Moneys credited.
Section 61-5-56 - Adjustment and refund of erroneous contributions.
Section 61-5-57 - Interest on delinquent contributions.
Section 61-5-58 - Penalty for failure to timely pay contributions or submit reports.
Section 61-5-60 - Notice of lien filed with register of deeds.
Section 61-5-63 - Return of uncollectible distress warrant.
Section 61-5-64 - Liability of county officer for failure to issue or execute distress warrant.
Section 61-5-65 - Satisfaction of lien recorded on payment of contributions.
Section 61-5-66 - Civil action for collection of contributions--Preference on court calendar.
Section 61-5-67 - Action in South Dakota for contributions to other states--Reciprocity.
Section 61-5-68 - Priority of contribution claims in state insolvency proceedings.
Section 61-5-69 - Priority of contribution claims in bankruptcy proceedings.
Section 61-5-70 - Cancellation of uncollectible unemployment insurance contributions.