25.135.14 100th Legislative Session 1083 2025 South Dakota Legislature House Bill 1083 ENROLLED AN ACT ENTITLED An Act to modify the requirements for obtaining an agricultural processor's lien. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: Section 1. That § 38-17-14 be AMENDED: 38-17-14. Any person owning and operating farm machinery to process a crop has a lien from the date of operation on all grain threshed or combined, corn shelled, husked or shredded, silage cut, seeds hulled, or agricultural products baled, mowed, ground, raked, or pulverized by the person for the value of these services. Section 2. That § 38-17-15 be AMENDED: 38-17-15. Any person entitled to a lien under § 38-17-14 shall perfect the lien as provided in chapter 57A-9. Any financing statement filed to perfect the lien must contain or have attached to it the following information: (1) The name and address of the owner or operator claiming the lien; (2) The name and address of the person for whom a service specified in § 38-17-14 was performed; (3) The amount due for the service of threshing, combining, shelling, husking, shredding, cutting, hulling, baling, mowing, grinding, raking, pulverizing, or other processing; (4) The amount of grain, seed, hay, silage, or other agricultural product covered by the lien; (5) The place where the grain, seed, hay, silage, or other agricultural product is located; and (6) The date on which the service was performed. 25.135.14 2 1083 HB1083 ENROLLED After making oath to the correctness of the statement, the person shall file the statement electronically with the secretary of state. The filing serves as notice to all purchasers and encumbrancers subsequent to the date of the filing. To perfect the lien, the financing statement must be filed within thirty days of the date the threshing or other processing was finished. At the time the lien is filed, the lienholder shall provide a copy to the person for whom the work was done. Section 3. That a NEW SECTION be added to chapter 38-17: If the person for whom the processing pursuant to § 38-17-14 was done desires to sell or deliver the grain, seed, hay, silage, or other agricultural product, the person must notify the consignee or purchaser that the bill for the threshing, combining, shelling, husking, shredding, cutting, hulling, baling, mowing, grinding, raking, pulverizing, or other processing has not been paid, and the lien created under § 38-17-14 applies to the purchase price paid by the purchaser or consignee. If the grain or other agricultural product covered by the lien pursuant to § 38-17- 14 is sold or consigned with the consent or knowledge of the person entitled to a lien, within thirty days after the date of the harvesting or other processing, the lien does not attach to the grain or other agricultural product covered by the lien pursuant to § 38-17- 14, or to the purchase price, unless the person entitled to the lien notifies the purchaser in writing of the lien. Section 4. That § 38-17-16 be AMENDED: 38-17-16. Any lien under § 38-17-14 has priority over all other liens and encumbrances upon the grain threshed or combined, corn shelled, husked or shredded, silage cut, seeds hulled, or agricultural products baled, mowed, ground, raked, or pulverized, if filed within thirty days from the day on which the harvesting, threshing, shelling, or other processing was completed. A lien created under this Act must be treated as an agricultural lien as provided in chapter 57A-9 and may be enforced in the manner and form provided for enforcement of secured transactions. The fee for filing, amending, or releasing the lien is as set forth in § 57A-9-525. Section 5. That § 38-17-19 be AMENDED: 25.135.14 3 1083 HB1083 ENROLLED 38-17-19. Any person having a lien under the provisions of §§ 38-17-3 to 38-17- 18, inclusive, may foreclose the same under the provisions of chapter 57A-9. Section 6. This Act is effective beginning January 1, 2027. 25.135.14 4 1083 HB1083 ENROLLED An Act to modify the requirements for obtaining an agricultural processor's lien. I certify that the attached Act originated in the: House as Bill No. 1083 Chief Clerk Speaker of the House Attest: Chief Clerk President of the Senate Attest: Secretary of the Senate House Bill No. 1083 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2025 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2025 Governor STATE OF SOUTH DAKOTA , ss. Office of the Secretary of State Filed ____________, 2025 at _________ o'clock __M. Secretary of State By Asst. Secretary of State