(Senate Bill 38)
An Act to prohibit a grain broker from engaging in certain transactions or activities and to provide a penalty therefor.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. 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 5 felony if the person holds himself or herself out to be a grain broker and a Class 1 misdemeanor in all other cases. Each purchase of grain without a license is a separate offense.
grain buyer transacting
a license may be enjoined upon complaint of the commission.
In addition, the
commission may assess a civil fine against an unlicensed grain buyer
in the amount of
dollars for each purchase of grain,
up to a maximum fine of twenty
per licensing period, as set forth in § 49-45-3.
For purposes of this section, the term, purchase of grain, means a transaction evidenced by the issuance of a uniform scale ticket or receipt, as described in § 49-45-10.1.
Section 2. That § 49-45-1.1 be AMENDED:
49-45-1.1. Terms used in this chapter mean:
(1) "Commission," the Public Utilities Commission;
(2) "Grain," grain, grain sorghums, beans, pulse crops, and oil seeds. The term does not include grain that has been cleaned, processed, and specifically identified for an intended use of planting for reproduction, grain received for consignment that will be processed by the consignee for an intended use of planting for reproduction, or grain purchased to feed livestock;
(3) "Grain broker," a person who is involved in the negotiation of a grain transaction in this state and:
(a) Is compensated for that involvement by at least one party to the transaction; and
(b) Does not take title to the grain that is subject to the transaction;
(4)_ "Grain buyer," any person who purchases grain for the purpose of reselling the unprocessed grain or who purchases three hundred thousand dollars' worth or more of grain directly from producers in a calendar year. Nothing in this chapter applies to the isolated resale of grain by a producer who does not hold himself or herself out as engaging in the business of reselling grain;
himself or herself out," the creation of an assumption or the
use of any kind of title, sign, symbol, document, or term indicating
or conveying the idea that the person whose name is so connected is
competent, qualified, authorized, or entitled to engage in certain
(6) "Person," any natural person, firm, corporation, company, limited liability company, partnership, association, or joint stock company, or the lessee, trustee, or receiver appointed by any court for any one of the foregoing;
a person engaged in the business of grain production; and
credit sale," a sale of grain or seeds pursuant to which the
sale price is to be paid more than thirty days after the delivery or
release of the grain for sale, including those contracts commonly
referred to as deferred-payment contracts, deferred-pricing
and price-later contracts
;and (6) "Producer,"
a person engaged in the business of grain production.
Section 3. That chapter 49-45 be amended with a NEW SECTION:
It is a Class 5 felony for a grain broker to:
(1) Negotiate or attempt to negotiate a grain transaction with a grain buyer, who is not licensed in accordance with this chapter; or
(2) Take title or attempt to take title to grain that is subject to a transaction beingnegotiated by the grain broker.
The commission may assess a civil fine against a grain broker in the amount of five thousand dollars for each violation of this section, up to a maximum fine of fifty-thousand dollars, annually.
Signed February 9, 2022
Catchlines are not law. (§ 2-16-13.1) Underscores indicate new language.
indicate deleted language.