State of South Dakota
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EIGHTY-EIGHTH SESSION
LEGISLATIVE ASSEMBLY, 2013
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295U0069
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HOUSE AGRICULTURE AND NATURAL RESOURCES
ENGROSSED NO. HB 1003 - 01/17/2013
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This bill has been extensively amended (hoghoused) and may no longer be consistent
with the original intention of the sponsor.
Introduced by: Representatives Rozum, Hawley, Hoffman, Magstadt, Olson (Betty),
Schrempp, and Solum and Senators Rampelberg, Maher, Sutton, and Tieszen
at the request of the Interim Oil and Gas Study Committee
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FOR AN ACT ENTITLED, An Act to revise the purpose of the agriculture mediation program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 54-13-1 be amended to read as follows:
54-13-1. Terms used in this chapter mean:
(1) "Agricultural land," a parcel of land larger than forty acres not located in any
municipality and used in farming or ranching operations carried on by the owner or
operator within the preceding three- year period for the production of farm products
as defined in subdivision 57A-9-102(a)(34) and includes wasteland lying within or
contiguous to and in common ownership with land used in farming or ranching
operations for the production of farming or ranching products;
(2) "Ag finance counselor," a person contracted by the Department of Agriculture
mediation program who is trained to assist in resolving agricultural loan disputes;
(3) "Agricultural property," agricultural land or personal property or a combination
thereof used in the pursuit of, or arising out of, or related to, the occupation of
farming or ranching;
(4) "Borrower," an individual, corporation, trust, cooperative, joint venture, or any other
entity entitled to contract who is engaged in farming or ranching and who derives
more than sixty percent of total gross income from farming or ranching and who has
borrowed from any one creditor on any single farm related debt in excess of fifty
thousand dollars;
(5) "Creditor," any individual, organization, cooperative, partnership, trust, or state or
federally chartered corporation to whom is owed debt in excess of fifty thousand
dollars by a borrower. A judgment creditor with a judgment of fifty thousand dollars
or more against a debtor with agricultural property is a creditor within the meaning
of this chapter;
(6) "Federal land mediation," assistance provided to individuals or organizations seeking
to mediate disputes with federal land management agencies;
(7) "Mediation," a process by which creditors and borrowers present, discuss, and
explore practical and realistic alternatives to the resolution of a borrower's debts; and
(7)(8) "Mediator," anyone responsible for and engaged in the performance of mediation
pursuant to this chapter, who is trained and certified by the Department of
Agriculture; and
(9) "Oil and gas mediation," assistance provided to individuals or organizations seeking
to mediate disputes with oil and gas developers related to surface damages.
Section 2. That § 54-13-2 be amended to read as follows:
54-13-2. The Department of Agriculture shall administer an agriculture mediation program
to:
(1) Provide assistance to borrowers and creditors who seek to use mediation as a method
for resolving loan disputes; and
(2) Provide federal land mediation to persons individuals or organizations seeking to
mediate disputes with federal land management agencies concerning decisions made
by those federal agencies; and
(3) Provide oil and gas mediation to individuals or organizations seeking to mediate
disputes over surface damages related to oil or gas development.
The secretary of the Department of Agriculture shall promulgate rules pursuant to chapter
1-26 necessary for mediation, federal land mediation, and oil and gas mediation including the
establishment of fees, training requirements for mediators and ag finance counselors and their
certification, mediation request forms, and any other mediation procedures as may be necessary
for the prompt and expeditious mediation of agriculture related disputes, including the receipt
of funds pursuant to the Agricultural Credit Act of 1987.
The agriculture mediation program may not, as a condition to mediation, require that the
borrower of any creditor waive any respective legal or equitable remedies or rights.