South Dakota Senate Bill SB36

South Dakota 2023 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23

Caption

Require quarterly reporting of alleged crimes and civil proceedings involving grain transactions and to provide a penalty therefor.

Impact

If enacted, SB36 will amend Chapter 49-26 of South Dakota law to include these reporting requirements. Violations of this reporting obligation, particularly if they lead to financial loss for a grain supplier, may be deemed punishable as theft under Chapter 22-30A. This legislative change is expected to create a more robust regulatory framework for grain transactions, thereby aiming to safeguard suppliers from fraudulent practices and improve the overall integrity of the grain market in South Dakota.

Summary

Senate Bill 36 aims to enhance transparency and accountability in grain transactions by instituting a requirement for grain buyers to report certain alleged criminal activities and civil proceedings. Specifically, grain buyers with a Class A license must provide written notification to the Public Utilities Commission whenever they become aware of embezzlement, theft, or fraud exceeding fifty thousand dollars, or when they become a creditor in a bankruptcy proceeding with claims over that same threshold. This regulation is positioned as a protective measure for grain suppliers and aims to curb fraudulent activities within the industry.

Contention

There could be differing opinions regarding SB36, particularly among grain buyers and suppliers about the feasibility and implications of such reporting requirements. Supporters of the bill may argue that enhanced transparency is essential for protecting suppliers and ensuring fair practices in grain dealings. Conversely, critics might express concerns about the administrative burden and potential repercussions for grain buyers, especially smaller operations that could struggle to comply with stringent reporting mandates.