Chapter 174

(Senate Bill 35)

An Act to increase penalties for actions related to grain transactions.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 49-43-4.2 be AMENDED:

49-43-4.2. No owner, lessee, or manager of any a public grain warehouse may transact any business as a public grain warehouse until a license has been issued by the commission. Any person who does business as a public grain warehouse without a license violates this section is guilty of a Class 1 misdemeanor.

Each day that a person conducts the business of a public grain warehouse without a license is in violation of this section is a separate offense.

The operation of a public grain warehouse, without a license, may be enjoined by the commission. In addition, the

The commission may assess a civil fine against an unlicensed warehouse operator in the amount of one five thousand dollars a per day, up to a maximum of twenty fifty thousand dollars.

Section 2. That § 49-43-41 be AMENDED:

49-43-41. Any public grain warehouse operator, owner, manager, or chief executive officer of a grain warehouse, or any other person in a managerial position in the state who refuses access to the warehouse's books and accounts or hinders and delays the commission or any of its employees or agents in examining the books and accounts, may be punished by assessed a civil fine not exceeding two twenty thousand dollars.

Section 3. That § 49-43-62 be AMENDED:

49-43-62. If at any time during the licensing period a grain warehouse operator becomes aware that the grain warehouse is not in compliance with each financial standard, as set forth in the commission's rules, the grain warehouse operator shall immediately notify the commission of the grain warehouse's financial condition. When notification occurs, the commission shall immediately conduct an examination to determine if any grounds for suspension pursuant to § 49-43-5.6 have occurred.

A willful violation of this section that results in a financial loss to a grain depositor is a Class 6 felony.

A willful violation that does not result in a financial loss to a grain depositor is a Class 1 misdemeanor.

In addition, theThe commission may assess a civil fine against an grain warehouse that is out of compliance grain warehouse a civil fine in an amount not to exceed one five thousand dollars for each day the grain warehouse has been out of compliance, up to a maximum of twenty fifty thousand dollars.

Section 4. That § 49-45-1 be AMENDED:

49-45-1. Before transacting the business of a grain buyer in this state, a person shall obtain a grain buyer license from the commission. A violation of this section is a Class 1 misdemeanor. Each purchase of grain without a license is a separate offense.

Operation as aA grain buyer transacting business without a license may be enjoined upon complaint of the commission. In addition, the

The commission may assess a civil fine against an unlicensed grain buyer in the amount of one five thousand dollars for each purchase of grain, up to a maximum fine of twenty fifty thousand dollars per licensing period, as set forth in § 49-45-3.

For purposes of this section, the term, purchase of grain, means the transaction evidenced by the issuance of a uniform scale ticket or receipt, as described in § 49-45-10.1.

Section 5. That § 49-45-25 be AMENDED:

49-45-25. If at any time during the licensing period a grain buyer becomes aware that the grain buyer is not in compliance with each financial standard, as set forth in the commission's rules, the grain buyer shall immediately notify the commission of the grain buyer's financial condition. When notification occurs, the commission shall immediately conduct an examination to determine if any grounds for suspension pursuant to § 49-45-16 have occurred.

A willful violation of this section that results in a financial loss to a grain supplier is a Class 6 felony.

A willful violation that does not result in a financial loss to a grain supplier is a Class 1 misdemeanor.

In addition, theThe commission may assess a civil fine, against an out of compliance out-of-compliance grain buyer, a civil fine in an amount not to exceed one thousand dollars for each day the grain buyer has been out of compliance, up to a maximum of twenty thousand dollars per licensing period, as set forth in § 49-45-3.

Section 6. That § 49-45-26 be AMENDED:

49-45-26. A grain buyer, the owner, manager, or chief executive officer of a grain buyer, or any other person in a managerial position, whether licensed or unlicensed, who or that purchases grain within thein this state, shall have the ability to, within five working days of an inspector's request, provide to the inspector, at a licensed location within this state or at the offices of the commission, all of the books, accounts, and electronic records relating to the transactions of the grain buyer, either within or without outside the state, upon request or within five working days of the request. Any requested materials shall be provided to the inspector at a licensed location within the state or at the offices of the commission.

A willful violation of this section is a Class 1 misdemeanor.

In addition, theThe commission may assess a civil fine in an amount not to exceed one thousand dollars for each day requested materials are withheld, up to a maximum of twenty thousand dollars per licensing period, as set forth in § 49-45-3.

Signed February 9, 2022