"of accepted skill and ability. Such person must have had experience of at least five years either The person shall have experience in public or private institutions for the mentally ill administration, including experience in a mental health setting and shall be of a good moral character. The".

"
     Section 1. That § 47-9A-1 be amended to read as follows:

     47-9A-1.   The Legislature of the State of South Dakota recognizes the importance of the family farm to the economic and moral stability of the state, and the Legislature recognizes that the existence of the independent family farm is threatened by conglomerates important to the economic viability of rural South Dakota and is jeopardized by downward vertical integration in farming. Therefore, it is hereby declared to be the public policy of this state, and shall be the provision of this chapter, that, notwithstanding the provisions of §  47-2-3, no foreign or domestic corporation legal entity which limits the individual liability of its owners or investors , except as provided herein, shall be formed or licensed under the South Dakota Business Corporation Act laws of this state for the purpose of owning, leasing, holding, or otherwise controlling agricultural land to be used in the business of agriculture or owning livestock .

     Section 2. That § 47-9A-2 be amended to read as follows:

     47-9A-2.   Terms used in this chapter , unless the context otherwise plainly requires, mean:

     47-9A-3.   Except as provided herein in this chapter , no foreign or domestic corporation may own livestock for more than two weeks prior to delivery for slaughter or engage in farming; nor may any foreign or domestic corporation, directly or indirectly, own, acquire, or otherwise obtain an interest, whether legal, beneficial, or otherwise, in any title to real estate used for farming or capable of being used for farming agricultural land in this state.

     Section 4. That § 47-9A-3.1 be repealed.

     47-9A-3.1.   The restrictions of §  47-9A-3 do not apply to the cultivation of edible fruits, vegetables, or mushrooms if such cultivation occurs within a greenhouse or other enclosed or semi-enclosed structure.

     Section 5. That § 47-9A-4 be repealed.

     47-9A-4.   Any national or state chartered bank, or trust company, authorized to do business in this state shall be exempt from the provisions of this chapter; provided, however, that no national or state bank or trust company shall purchase agricultural lands in South Dakota through a pooled investment fund formed from assets from retirement, pension, profit sharing, stock bonds, or other trusts.

     Section 6. That § 47-9A-5 be amended to read as follows:

     47-9A-5.   The restrictions of §  47-9A-3 shall § §  47-9A-1 and 47-9A-3 do not apply to agricultural land and land capable of being used for farming or livestock which:

investors is actively engaged in the day-to-day implementation of the management of the farm land or farm operation ; or

     47-9A-6.   The restrictions provided in §  47-9A-3 shall not apply to a bona fide encumbrance

taken for purposes of security.

     Section 8. That § 47-9A-7 be repealed.

     47-9A-7.   The restrictions of §  47-9A-3 shall not apply to agricultural lands acquired by a corporation by process of law in the collection of debts; or by any procedure for the enforcement of a lien or claim thereon, whether created by mortgage or otherwise; provided, however, that all lands so acquired be disposed of within ten years after acquiring the title thereto, and further provided that the land so acquired shall not be used for farming during the ten-year period except under a lease to a family farm unit, a family farm corporation, or an authorized farm corporation. The aforementioned ten-year limitation period shall be deemed a covenant running with the title to the land against any corporate grantee or assignee or the successor of such corporation.

     Section 9. That § 47-9A-8 be repealed.

     47-9A-8.   The restrictions of §  47-9A-3 shall not apply to gifts of agricultural lands, either by grant or devise, to any corporation organized under chapter 47-22.

     Section 10. That § 47-9A-9 be repealed.

     47-9A-9.   The restrictions of §  47-9A-3 shall not apply to a farm operated for research or experimental purposes; provided, that any commercial sales from such farm shall be incidental to the research or experimental objectives of the corporation.

     Section 11. That § 47-9A-10 be repealed.

     47-9A-10.   The restrictions of §  47-9A-3 shall not apply to agricultural land operated by a corporation for the purpose of raising breeding stock for resale to farmers or operated for the purpose of growing seed, nursery plants, or sod.

     Section 12. That § 47-9A-11 be repealed.

     47-9A-11.   The restrictions of §  47-9A-3 shall not apply to agricultural lands acquired by a corporation solely for the purpose of feeding livestock.

     Section 13. That § 47-9A-12 be amended to read as follows:

     47-9A-12.   The restrictions of §  47-9A-3 shall do not apply to agricultural land acquired by a corporation other than a family farm corporation or authorized farm corporation for immediate or potential use in nonfarming purposes. A corporation may hold such agricultural land in such acreage as may be necessary to its nonfarm business operation; provided, however, that pending the development of agricultural land for nonfarm purposes, such land may not be used for farming

except under lease to a family farm unit, a family farm corporation or an authorized farm corporation, or except when controlled through ownership, options, leaseholds or other agreements by a corporation which has entered into an agreement with the United States of America pursuant to the New Community Act of 1968, (Title IV of the Housing and Urban Development Act of 1968, 42 U.S.C. 3901-3914), as amended, or a subsidiary or assign of such a corporation.

     Section 14. That § 47-9A-13 be repealed.

     47-9A-13.   The restrictions of §  47-9A-3 shall not apply to a family farm corporation or an authorized farm corporation.

     Section 15. That § 47-9A-13.1 be repealed.

     47-9A-13.1.   No corporation, except a family farm corporation, may own or operate any hog confinement facility. For the purposes of this chapter a hog confinement facility is any real estate used for the breeding, farrowing, and raising of swine. This restriction shall not apply to the acquisition of a hog confinement facility by a corporation by process of law in the collection of debts, or by any other procedure for the enforcement of a lien or claim thereon, as provided in §   47-9A-7.

     Section 16. That § 47-9A-14 be repealed.

     47-9A-14.   As used in this chapter, unless the context otherwise plainly requires, "family farm corporation" means a corporation founded for the purpose of farming and the ownership of agricultural land in which the majority of the voting stock is held by the majority of the stockholders who are members of a family related to each other within the third degree of kindred, and at least one of whose stockholders is a person who is residing on or actively operating the farm or who has resided on or has actively operated the farm, and none of whose stockholders are corporations, or a corporation founded for the purpose of farming and the ownership of agricultural land in which a majority of the voting stock is held by resident stockholders who are family farmers and are actively engaged in farming as their primary economic activity. However, a family farm corporation does not cease to qualify as such hereunder by reason of any devise or bequest of shares of voting stock or by reason of any gift of shares of voting stock to any person who is entitled to inherit from the donor if the donor were to die intestate.

     Section 17. That § 47-9A-15 be repealed.

     47-9A-15.   As used in this chapter, unless the context otherwise plainly requires, "authorized farm corporation" means a corporation whose shareholders do not exceed ten in number, whose shareholders are all natural persons or estates, whose shares are all of one class, and whose revenues from rent, royalties, dividends, interest, and annuities do not exceed twenty percent of its gross receipts.

     47-9A-16.   Every corporation or limited liability entity engaged in farming or proposing to commence farming in this state shall file with the secretary of state a report containing:

     47-9A-17.   The report of a corporation seeking to qualify hereunder as a family farm corporation or an authorized farm corporation shall contain, in addition:

     47-9A-18.   No corporation shall or limited liability entity may commence farming in this state until the secretary of state has inspected the report required by §  47-9A-16 and certified that its proposed operations comply with the provisions of § §  47-9A-16 and 47-9A-17 §  47-9A-16 .

     Section 21. That § 47-9A-19 be repealed.

     47-9A-19.   Every corporation engaged in farming in this state shall, prior to the first day of the second month following the anniversary month of the corporation of each year, file with the secretary of state a report containing the information required in this chapter, based on its operations in the

preceding calendar year and its status at the end of such year.

     Section 22. That § 47-9A-20 be amended to read as follows:

     47-9A-20.   Any corporation or limited liability entity which fails to file any report required by this chapter or intentionally files false information on any report required by this chapter is subject to a civil fine of not more than one thousand dollars.

     Section 23. That § 47-9A-21 be amended to read as follows:

     47-9A-21.   If the attorney general has reason to believe that a corporation or limited liability entity is in violation of this chapter, he the attorney general shall commence an action in the circuit court for the county in which any agricultural lands relative to such violation are situated, or if situated in two or more counties, in any county in which a substantial part of the lands are situated. If the court finds that the lands in question are being held in violation of this chapter, it shall enter an order so declaring.

     Section 24. That § 47-9A-22 be amended to read as follows:

     47-9A-22.   The attorney general shall file any order under §  47-9A-21 for record with the register of deeds of each county in which any portion of said the lands are located. Thereafter, the corporation or limited liability entity owning such land shall have a period of five years from the date of such order to divest itself of such lands. The aforementioned five-year limitation period shall be deemed a covenant running with the title to the land against any corporate grantee or assignee or the successor of such corporation entity . Any lands not so divested within the time prescribed shall be sold at public sale in the manner prescribed by order of the court.

     Section 25. That § 47-9A-23 be amended to read as follows:

     47-9A-23.   This chapter shall be known and may be cited as the Family Farm Act of 1974 .

     Section 26. The provisions of this Act become effective on July 1, 2002, if the electors of the State of South Dakota approve the repeal of sections 21, 22, 23, and 24 of Article XVII of the South Dakota Constitution at the June 2002, primary election."

Alice Christensen