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Codified Laws
61-3 ADMINISTRATION AND ENFORCEMENT
CHAPTER 61-3

ADMINISTRATION AND ENFORCEMENT

61-3-1      General purposes of departmental programs--Assistance, investigations, and research.
61-3-2      Work record maintained by employing unit--Inspection by department.
61-3-3      Report required of employers by secretary.
61-3-4      Information confidential--Use by claimant at hearing--Violation as misdemeanor.
61-3-5      Reports and communications privileged in actions for defamation.
61-3-6      Preservation and destruction of departmental records.
61-3-7      Powers of departmental personnel in conduct of investigations and hearings.
61-3-8      Disobedience of subpoena not excused by privilege against self-incrimination--Immunity from prosecution after claim of privilege.
61-3-9      Disobedience of departmental subpoena--Misdemeanor--Separate offenses.
61-3-10      Judicial enforcement of departmental subpoena--Disobedience as contempt.
61-3-11, 61-3-12. Repealed.
61-3-13      Superseded.
61-3-14      Availability of laws, rules, and reports.
61-3-15      Repealed.
61-3-16      Criminal prosecutions by attorney general or state's attorney.
61-3-17      Representation of department in civil actions.
61-3-18      Promulgation of rules to secure federal benefits.
61-3-19      Arrangements with other states for coordinated administration of benefits.
61-3-20      Agreements with federal government and other states for coordinated collection of contributions.
61-3-21      Cooperation and compliance with federal requirements--Reports and information.
61-3-22      Records made available to railroad retirement board.
61-3-23      Information furnished to federal public works agencies.
61-3-24      Employment security administration fund created--Moneys paid into fund--Purposes for which used.
61-3-25      Separate administration and accounting for administration fund--Security provided by depository.
61-3-26      Administration fund covered by state treasurer's bond--Deposit of recoveries on bond.
61-3-27      State obligation to replace federal contributions expended in unauthorized manner.
61-3-28      Employment security contingency fund established--Interest, penalty, and fine payments paid into fund--Restrictions on expenditures--Use of fund.
61-3-29      Refunds of interest, penalties, and fines paid from employment security contingency fund.
61-3-30      Expenditures and refunds from employment security contingency fund--Deposit, administration, and disbursement of fund.
61-3-31      Transfer of contingency fund balance to unemployment compensation fund.



61-3-1General purposes of departmental programs--Assistance, investigations, and research.

The secretary of labor and regulation, with the advice and aid of the advisory councils, and through the department's appropriate divisions, shall take all appropriate steps to reduce and prevent unemployment; to encourage and assist in the adoption of practical methods of vocational training, retraining, and vocational guidance; to investigate, recommend, advise, and assist in the establishment and operation by municipalities, counties, school districts, and the state of reserves for public works to be used in times of business depression and unemployment; to promote the re-employment of unemployed workers throughout the state in every other way that may be feasible; and to these ends to carry on and publish the results of investigations and research studies.

Source: SL 1936 (SS), ch 3, § 11 (f); SDC 1939, § 17.0810; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-2Work record maintained by employing unit--Inspection by department.

Each employing unit shall keep true and accurate work records containing information needed to administer this title according to rules promulgated pursuant to chapter 1-26 by the secretary of labor and regulation. The records shall be kept for four years and shall be open to inspection and be subject to being copied by the Department of Labor and Regulation at any reasonable time and as often as may be necessary.

Source: SL 1936 (SS), ch 3, § 11 (g); SDC 1939, § 17.0814; SL 1939, ch 84, § 10; SL 1983, ch 22, § 8; SL 1993, ch 375, § 22; SL 2008, ch 277, § 48; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-3Report required of employers by secretary.

The secretary of labor and regulation may require from any employing unit any sworn or unsworn reports, with respect to persons employed by it, which the secretary deems necessary for the effective administration of this title.

Source: SL 1936 (SS), ch 3, § 11 (g); SDC 1939, § 17.0814; SL 1939, ch 84, § 10; SL 1943, ch 80; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-4Information confidential--Use by claimant at hearing--Violation as misdemeanor.

No information obtained under § 61-3-2 or 61-3-3 may be published or open to public inspection other than to public employees in the performance of their public duties in any manner revealing the employing unit's identity, but any claimant at a hearing before the Department of Labor and Regulation shall be supplied with information from such records to the extent necessary for the proper presentation of the claimant's claim. Any employee or officer of the Department of Labor and Regulation who violates any of the provisions of this section commits a Class 2 misdemeanor.

Source: SL 1936 (SS), ch 3, § 11 (g); SDC 1939, §§ 17.0814, 17.9903; SL 1943, ch 80; SL 1978, ch 359, § 2; SL 2008, ch 277, § 49; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-5Reports and communications privileged in actions for defamation.

No letter, report, communication, or other matter, whether oral or written, from the employer, the employer's agents, representatives or employees, to each other or to the secretary of labor and regulation, the secretary's agents, representatives or employees, which have been written or made in connection with the requirements and administration of this title or any rules promulgated pursuant to this title, may be made subject matter or basis for any action, whether civil or criminal, for slander or libel.

Source: SDC 1939, § 17.0814 as added by SL 1943, ch 80; SL 1993, ch 375, § 23; SL 2008, ch 277, § 50; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-6Preservation and destruction of departmental records.

The department shall maintain any record relating to benefit claims for a period of two years and any record relating to employer contributions for a period of five years. In order to conserve filing and storage space, the secretary may thereafter order such a record destroyed. The secretary may order other records destroyed after a period of one year.

Source: SDC 1939, § 17.0847 as enacted by SL 1945, ch 78, § 4; SL 1951, ch 94, § 11; SL 2008, ch 277, § 51.



61-3-7Powers of departmental personnel in conduct of investigations and hearings.

In the discharge of the duties imposed by this title, the secretary of labor and regulation and any duly authorized representative of the secretary may administer oaths and affirmations, take depositions, certify to official acts, and issue subpoenas to compel the attendance of witnesses and the production of books, papers, correspondence, memoranda, and other records deemed necessary as evidence in connection with a disputed claim or the administration of this title.

Source: SL 1936 (SS), ch 3, § 11 (h); SDC 1939, § 17.0815; SL 2008, ch 277, § 52; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-8Disobedience of subpoena not excused by privilege against self-incrimination--Immunity from prosecution after claim of privilege.

No person may be excused from attending and testifying or from producing books, papers, correspondence, memoranda, and other records before the Department of Labor and Regulation or in obedience to the subpoena of the secretary or any duly authorized representative of the secretary in any cause or proceeding before the department, on the ground that the testimony or evidence, documentary or otherwise, required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture. However, no person may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which the person is compelled, after having claimed privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that the person so testifying is not exempt from prosecution and punishment for perjury committed in so testifying.

Source: SL 1936 (SS), ch 3, § 11 (j); SDC 1939, § 17.0816; SL 2008, ch 277, § 53; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-9Disobedience of departmental subpoena--Misdemeanor--Separate offenses.

Any person who without just cause fails or refuses to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda, or other records, if it is in the person's power to do so, in obedience to a subpoena issued pursuant to the provisions of § 61-3-7 is guilty of a Class 2 misdemeanor. Each day such violation continues shall be deemed to be a separate offense.

Source: SL 1936 (SS), ch 3, § 11 (i); SDC 1939, § 17.9904; SL 1976, ch 158, § 43-6; SL 2008, ch 277, § 54.



61-3-10Judicial enforcement of departmental subpoena--Disobedience as contempt.

In case of contumacy by, or refusal to obey a subpoena issued to any person pursuant to § 61-3-7, any court of this state within the jurisdiction of which the inquiry is carried on or within the jurisdiction of which the person guilty of contumacy or refusal to obey is found or resides or transacts business, upon application by the secretary of labor and regulation or the secretary's duly authorized representative, may issue to the person an order requiring the person to appear before the secretary or the secretary's duly authorized representative, there to produce evidence if so ordered or there to give testimony touching the matter under investigation or in question; and any failure to obey such order of the court may be punished by the court as a contempt thereof.

Source: SL 1936 (SS), ch 3, § 11 (i); SDC 1939, § 17.0815; SL 2008, ch 277, § 55; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-11, 61-3-12. Repealed by SL 1983, ch 22, §§ 9, 10.



61-3-13Superseded.



61-3-14Availability of laws, rules, and reports.

The secretary of labor and regulation shall make available for the public the text of this title, administrative rules promulgated pursuant to this title, annual reports to the Governor, and any other material the secretary deems relevant and suitable and shall furnish the same to any person upon application therefor.

Source: SL 1936 (SS), ch 3, § 11 (c); SDC 1939, § 17.0809; SL 1993, ch 375, § 24; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011; SL 2012, ch 252, § 55.



61-3-15Repealed by SL 1978, ch 359, § 3.



61-3-16Criminal prosecutions by attorney general or state's attorney.

Any criminal action for violation of any provision of this title or of any rule promulgated pursuant to this title shall be prosecuted by the attorney general of the state; or, at the attorney general's request and under the attorney general's direction, by the state's attorney of any county in which the employer has a place of business or the violator resides.

Source: SL 1936 (SS), ch 3, § 17; SDC 1939, § 17.0841; SL 1993, ch 375, § 25; SL 2008, ch 277, § 56.



61-3-17Representation of department in civil actions.

In any civil action to enforce the provisions of this title the Department of Labor and Regulation and the state may be represented by any qualified attorney who is a regular salaried employee of the department and is designated by the department for this purpose or at the department's request, by the attorney general.

Source: SL 1936 (SS), ch 3, § 17; SDC 1939, § 17.0841; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-18Promulgation of rules to secure federal benefits.

The department shall promulgate rules pursuant to chapter 1-26 necessary to secure to this state and its citizens all advantages available under the provisions of the Social Security Act that relate to reemployment assistance or unemployment compensation, the Federal Unemployment Tax Act, the Wagner-Peyser Act, and the Federal-State Extended Unemployment Compensation Act of 1970.

Source: SDC 1939, § 17.0811 as added by SL 1939, ch 87, § 1; SL 1971, ch 276, § 23; SL 1993, ch 375, § 26; SL 2019, ch 216, § 11.



61-3-19Arrangements with other states for coordinated administration of benefits.

The department shall participate in any arrangements for the payment of compensation on the basis of combining an individual's wages and employment covered under this title with the individual's wages and employment covered under the reemployment assistance or unemployment compensation laws of other states which are approved by the United States secretary of labor in consultation with the state reemployment assistance or unemployment compensation agencies as reasonably calculated to assure the prompt and full payment of compensation in the situations and which include provisions for applying the base period of a single state law to a claim involving the combining of an individual's wages and employment covered under two or more state reemployment assistance or unemployment compensation laws, and avoiding the duplicate use of wages and employment by reason of such combining.

Source: SL 1936 (SS), ch 3, § 11 (1); SDC 1939, § 17.0812; SL 1939, ch 87, § 2; SL 1943, ch 77, § 3; SDC Supp 1960, § 17.0812 (1); SL 1971, ch 276, § 24; SL 2008, ch 277, § 57; SL 2019, ch 216, § 12.



61-3-20Agreements with federal government and other states for coordinated collection of contributions.

The Department of Labor and Regulation may enter into reciprocal agreements with the appropriate agencies of other states or of the federal government relating to the collection and payment of contributions by employers with respect to employment not localized within this state.

Source: SDC 1939, § 17.0812 (3) as added by SL 1939, ch 87, § 2; SL 1943, ch 77, § 3; SDC Supp 1960, § 17.0812 (2); SL 2008, ch 277, § 58; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-21Cooperation and compliance with federal requirements--Reports and information.

In the administration of this title, the South Dakota Department of Labor and Regulation shall co-operate to the fullest extent consistent with the provisions of this title, with the secretary of labor and regulation of the United States; shall make such reports, in the form and containing the information as the secretary of labor and regulation may from time to time require. The department shall comply with such provisions as the secretary of labor and regulation may from time to time find necessary to assure the correctness and verification of such reports. The department shall comply with the regulations prescribed by the secretary of labor and regulation governing the expenditures of such sums as may be allotted and paid to this state under Title III of the Social Security Act for the purpose of assisting in the administration of this title.

Source: SL 1936 (SS), ch 3, § 11 (k); SDC 1939, § 17.0811; SL 1939, ch 87, § 1; SL 2008, ch 277, § 59; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-22Records made available to railroad retirement board.

The Department of Labor and Regulation may make the state's records relating to the administration of this title available to the railroad retirement board, and may furnish the railroad retirement board, at the expense of such board, such copies thereof as the railroad retirement board deems necessary for its purposes.

Source: SDC 1939, § 17.0811 as added by SL 1939, ch 87, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-23Information furnished to federal public works agencies.

Upon request therefor the Department of Labor and Regulation shall furnish to any agency of the United States charged with the administration of public works or assistance through public employment, the name, address, ordinary occupation, and employment status of each recipient of benefits and such recipient's rights to further benefits under this title.

Source: SL 1936 (SS), ch 3, § 11 (k); SDC 1939, § 17.0811; SL 1939, ch 87, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-24Employment security administration fund created--Moneys paid into fund--Purposes for which used.

There is created in the state treasury a special fund to be known as the employment security administration fund. Moneys which are deposited or paid into this fund are continuously available to the Department of Labor and Regulation for expenditure in accordance with the provisions of this title, and may not lapse at any time or be transferred to any other fund. All moneys in this fund which are received from the federal government or any agency thereof shall be expended solely for the purposes and in the amounts found necessary by the United States secretary of labor for the proper and efficient administration of this title. The fund shall consist of all moneys received from the United States of America, or any agency thereof, including the United States secretary of labor, and all moneys received from any other source for such purpose and shall include also any moneys received from the railroad retirement board as compensation for services or facilities supplied to said board, any amounts paid pursuant to any surety bond or insurance policy or from other sources for losses sustained by the employment security administration fund or by reason of damage to equipment or supplies purchased from moneys in such fund, and any proceeds realized from the sale or disposition of any such equipment or supplies which may no longer be necessary for the proper administration of this title.

Source: SL 1936 (SS), ch 3, § 13; SDC 1939, § 17.0817; SL 1939, ch 87, § 4; SL 1939, ch 88, § 1; SL 1941, ch 84; SDC Supp 1960, § 17.0817 (1); SL 1965, ch 97, § 1; SL 2008, ch 277, § 60; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-25Separate administration and accounting for administration fund--Security provided by depository.

Any money in the employment security administration fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as is provided by law for other special funds in the state treasury. However, no money in this fund may be commingled with other state funds. The money shall be maintained in a separate account on the books of a depository bank. The money shall be secured by the depository in which it is held to the same extent and in the same manner as required by the general depository law of the state, and collateral pledged shall be maintained in a separate custody account.

Source: SL 1936 (SS), ch 3, § 13; SDC 1939, § 17.0817; SL 1939, ch 87, § 4; SL 1939, ch 88, § 1; SL 1941, ch 84; SDC Supp 1960, § 17.0817 (1); SL 1965, ch 97, § 1; SL 2008, ch 277, § 61.



61-3-26Administration fund covered by state treasurer's bond--Deposit of recoveries on bond.

The state treasurer is liable on the state treasurer's official bond for the faithful performance of the treasurer's duties in connection with the employment security administration fund provided for under this chapter. The liability exists in addition to any liability upon any separate bond which may be given. Any sum recovered on any surety bond for losses sustained by the employment security administration fund shall be deposited in the fund.

Source: SL 1936 (SS), ch 3, § 13; SDC 1939, § 17.0817; SL 1939, ch 87, § 4; SL 1939, ch 88, § 1; SL 1941, ch 84; SDC Supp 1960, § 17.0817 (1); SL 1965, ch 97, § 1; SL 2008, ch 277, § 62.



61-3-27State obligation to replace federal contributions expended in unauthorized manner.

This state recognizes its obligation to replace, and hereby pledges the faith of this state that funds will be provided in the future, and applied to the replacement of, any moneys received from the United States secretary of the treasury under Title III of the Social Security Act, any unencumbered balances in the employment security administration fund as of that date, any moneys thereafter granted to this state pursuant to the provisions of the Wagner-Peyser Act, which the United States secretary of labor finds have, because of any action or contingency, been lost or have been expended for purposes other than, or in amounts in excess of, those found necessary by the United States secretary of labor for the proper administration of this title. Such moneys shall be promptly replaced by moneys appropriated for such purpose from the general funds of this state to the employment security administration fund for expenditure as provided in § 61-3-24. The Department of Labor and Regulation shall promptly report to the Governor, and the Governor to the Legislature, the amount required for such replacement. This section does not relieve this state of its obligation with respect to funds received prior to July 1, 1941, pursuant to the provisions of title III of the Social Security Act.

Source: SDC 1939, § 17.0817 (2) as added by SL 1941, ch 84; SL 1965, ch 97, § 1; SL 2008, ch 277, § 63; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.



61-3-28Employment security contingency fund established--Interest, penalty, and fine payments paid into fund--Restrictions on expenditures--Use of fund.

There is established a special fund to be known as the employment security contingency fund which shall be maintained by the state treasurer separate and apart from all public moneys or funds of the State of South Dakota. The fund shall consist of all interest, penalties and fines collected under this title together with any interest earned on moneys in this fund. Any provisions of this title to the contrary notwithstanding, all interest, penalty and fine payments collected shall be deposited in the clearing account of the unemployment compensation fund for clearance only and may not become a part of such fund. After clearance thereof, the moneys derived from such payments, less refunds made pursuant to § 61-3-29 and other provisions of this title, shall be deposited in the employment security contingency fund. The moneys may not be expended or available for expenditure in any manner which would permit their substitution for, or a corresponding reduction in, federal funds which would, in the absence of the moneys, be available to finance expenditures for the administration of this title, but nothing in §§ 61-3-28 to 61-3-31, inclusive, prevents the moneys from being used as a revolving fund, to cover expenditures for which federal funds have been requested but have not yet been received, subject to the charging of such expenditures against such funds when received. The moneys in this fund shall be used by the department, with prior approval of the Governor for each withdrawal, for the payment of costs of administration which the Governor finds are not properly and validly chargeable against federal grants (or other funds) received for or in the employment security administration fund. The moneys in this fund are hereby specifically made available to the department, with prior approval by the Governor, for replacement within a reasonable period of time, of any moneys received by this state in the form of grants from the federal government for administrative expenses which because of any action or contingency have been lost or have been expended for purposes other than, or in excess of, those found by the United States secretary of labor to be necessary for the proper and efficient administration of this title. Such moneys shall be available either to satisfy the obligations incurred directly or by transferring the required amount from the employment security contingency fund to the employment security administration fund.

Source: SL 1968, ch 86, § 3; SL 2008, ch 277, § 64.



61-3-29Refunds of interest, penalties, and fines paid from employment security contingency fund.

Refunds of interest, penalties and fines erroneously collected pursuant to this title may be made from this fund, or from the interest, penalty and fine moneys which are temporarily in the clearing account in the unemployment compensation fund pending their transfer to the employment security contingency fund. No interest and penalty payments may be refunded from the unemployment compensation fund.

Source: SL 1968, ch 86, § 3; SL 2008, ch 277, § 65.



61-3-30Expenditures and refunds from employment security contingency fund--Deposit, administration, and disbursement of fund.

The moneys in this fund are continuously available to the department, with prior approval by the Governor, for expenditures and refunds in accordance with the provisions of §§ 61-3-28 and 61-3-29. No money may lapse at any time or be transferred to any other fund or account except as provided in § 61-3-31. All moneys in the employment security contingency fund shall be deposited, administered, and disbursed in the same manner as is provided by law for other special funds of the state treasurer.

Source: SL 1968, ch 86, § 3; SL 2008, ch 277, § 66.



61-3-31Transfer of contingency fund balance to unemployment compensation fund.

If on September thirtieth of any calendar year the balance in the employment security contingency fund exceeds fifteen thousand dollars by one thousand dollars or more, the state treasurer shall transfer the excess to the unemployment compensation fund.

Source: SL 1968, ch 86, § 3; SL 2008, ch 277, § 67.