SDCL § 58-30-169: Unreported knowledge by partners, officers, or managers of violation as grounds for penalty.

The license of a business entity may be suspended, revoked, refused, or the director may accept a monetary penalty in accordance with § 58-4-28.1, or any combination thereof, if the director finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the partnership or corporation and the violation was neither reported to the director nor corrected.