2006 South Dakota Code - 3-22-13 — Initial contribution--Payment in installments--Amount--Contribution formula forsubsequent contributions--Penalties for late payments--Contribution by state--Repayment to state general fund--Annual report to Governor of amount required fornext contribution year--Notice of shortfall--Withdrawal of state.

     3-22-13.   Initial contribution--Payment in installments--Amount--Contribution formula for subsequent contributions--Penalties for late payments--Contribution by state--Repayment to state general fund--Annual report to Governor of amount required for next contribution year--Notice of shortfall--Withdrawal of state. There is imposed an initial contribution on all members, who join prior to July 1, 1988, other than the state, to be paid as determined by the bureau to the PEPL fund in no more than four equal installments throughout the fiscal year. Such assessment shall be one half of one percent of the total annual budget for school district members and one percent of the total annual budget for all other members. If members of an existing risk or liability pool arrangement join the PEPL fund as a sub-pool, their initial contribution shall be established in the agreement between the sub-pool and the bureau giving consideration to contributions made to the sub-pool and may be more or less than the initial contribution established in this section. The bureau shall determine a contribution formula for subsequent contributions which allocates pool costs on an equitable basis. The development of the contribution formula shall consider various exposures and rating bases, historical loss experience and discounts from commercial insurance premiums. Any contribution not paid within ten days of the due date established by the bureau shall accrue interest penalties at the rate of two percent per month. No state warrant for state funds under any provision of law may be issued to any member more than thirty days in arrears in making the contribution payment provided herein. Contributions by the state will be established as follows: one million dollars ($1,000,000) appropriated in this chapter is the state's initial contribution subject to subdivision 3-22-5(10). The remaining eight hundred and fifty thousand dollars ($850,000) is for payment of claims and the funding of reserves. If any of said funds are placed into any reserve fund such amount may not be counted for triggering distribution of surplus pursuant to § 3-22-14 nor may any of this money be distributed as surplus except as provided in § 3-22-20. The eight hundred fifty thousand dollar reserve fund, less any amounts paid in satisfaction of claims against the state, shall be repaid to the state general fund upon a determination by the bureau that other reserve funds are adequate to meet the needs of the fund but in no event later than June 30, 1992. By November first of each subsequent year the director shall report to the Governor the estimated amount of contribution required to extend coverage to the state for the next contribution year including amounts required for reserves. The director shall notify the Governor if the current year's estimate was less than the contribution required and a shortfall exists. If the Legislature fails to appropriate the estimated amount and the shortfall from the previous coverage year reported to the Governor the state's membership in the PEPL shall terminate at the close of the then current coverage year. The board shall notify all remaining members of the state's withdrawal from the fund.

Source: SL 1986, ch 413, § 14; SL 1987, ch 40, § 8.