25.672.13 100th Legislative Session 1165
2025 South Dakota Legislature
House Bill 1165
HOUSE AGRICULTURE AND NATURAL RESOURCES ENGROSSED
Introduced by: Representative Gosch
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An Act to provide a means by which an agricultural producer can reject the 1
imposition of an assessment on crops. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That § 38-10-20 be AMENDED: 4
38-10-20. In connection with and in furtherance of the policy and purpose 5
declared in § 38-10-1, the wheat commission may promulgate rules pursuant to chapter 6
1-26 concerning: 7
(1) The procedures for obtaining a declaratory ruling; 8
(2) The procedures for fee collection for wheat sold either in-state or out-of-state; 9
(3) The procedures for obtaining a refund of the fee; and 10
(4) The procedures for collecting delinquent fees and assessing penalties; and 11
(5) The creation, distribution, and utilization of a form by which a grower may refuse 12
the assessment and imposition of a promotional fee, as set forth in § 38-10-22. 13
Section 2. That § 38-10-22 be AMENDED: 14
38-10-22. There is hereby assessed a promotional fee of four -tenths of one 15
percent of the value of the net market price per bushel upon all wheat sold through 16
commercial channels in the State of South Dakota. The fee shall this state. Except as 17
otherwise provided for in section 3 of this Act, the fee must be assessed and imposed on 18
the grower at the time of sale or delivery, and shall must be collected and remitted by the 19
first purchaser in the manner described by the commission pursuant to administrative , in 20
rules promulgated pursuant to chapter 1-26. No wheat is subject to the fee more than 21
once. 22
Section 3. That a NEW SECTION be added to chapter 38-10: 23 25.672.13 2 1165
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A grower may refuse the assessment and imposition of the promotional fee as set 1
forth in § 38-10-22, by completing a refusal form at the time of settlement. The form 2
must contain the grower's name, mailing address, date, and signature. The commission 3
shall provide the form to each purchaser of wheat and make the form available on its 4
website. 5
Section 4. That § 38-10-24 be AMENDED: 6
38-10-24. TheUnless otherwise refused by the grower in accordance with section 7
3 of this Act, the fee established pursuant to § 38-10-22, shall must be deducted, as 8
provided by this chapter, whether such wheat is stored or sold in this or any other state. 9
However, if agreements have not been made with dealers If collected, a dealer outside of 10
the state for collecting shall remit the fee to the wheat commission, or the grower shall 11
remit the fee to the wheat commission, as provided in administrative rules promulgated 12
pursuant to chapter 1-26 on all wheat so sold by him outside the state. 13
Section 5. That § 38-10-28 be AMENDED: 14
38-10-28. In the case of a pledge or mortgage of wheat as security for a loan 15
under the federal price support program, unless otherwise refused by the grower in 16
accordance with section 3 of this Act, the fee assessed by established pursuant to § 38-17
10-22 shall must be deducted from the proceeds of such the loans at the time the loans 18
are made, or be deducted thereafter by agencies of the federal government , and. A 19
producer's note and loan agreement (commodity loan Form B) or, a producer's note and 20
supplemental loan agreement (commodity loan Form A) , or delivery instructions 21
(commodity purchaser Form 3) issued by the federal agency to the grower are hereby 22
approved as fulfilling the requirements for invoices, and the approved forms herein 23
approved shall be are deemed to constitute proof of payment of such the promotional fee 24
on the wheat listed thereon. 25
Section 6. That § 38-10-33 be AMENDED: 26
38-10-33. If any person, business or entity, public or private, has not refused the 27
assessment and imposition of the promotional fee and is thereby subject to the payment 28
of the fee under § 38-10-22, and if the person fails to make a report and remittance when 29
and as required in this chapter, the executive director of the wheat commission shall 30
determine the amount of such the fee according to his the director's best judgment and 31 25.672.13 3 1165
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information, which amount so fixed shall must be prima facie correct, and such the person 1
so having who failed to make such the report shall, within ten days after notice of the 2
amount of the fee so fixed and computed by the director is mailed to such the person, pay 3
said the fee, together with a penalty of five percent on the amount of the fee or he may. 4
The person may dispute the fee as fixed by the director and request the commission to 5
hold a hearing to determine the amount of the fee and penalty to be imposed. No payment 6
may be made until the commission enters its order determining the amount of such the 7
payment, but such shall be paid once determined, payment must be made within ten days 8
of notice of such decision. 9
Section 7. That § 38-10-34 be AMENDED: 10
38-10-34. Any person, firm, or corporation subject toIf any person who has paid 11
the fee provided in this chapter that objects to the collection of the fee payment, the 12
person may, within sixty days following the collection payment, apply to the wheat 13
commission for a refund of the fee. Upon the return of the refund application, accompanied 14
by a true, legible record of the invoices delivered by the purchaser to the grower, the 15
commission shall, within thirty days, refund the net amount of the fee collected paid to 16
the grower. If no request for refund has been made within sixty days after the collection 17
payment of the fee, the grower shall be is conclusively presumed to have agreed to the 18
deduction fee. 19
Section 8. That § 38-27-8.1 be AMENDED: 20
38-27-8.1. The council may promulgate rules pursuant to chapter 1-26 21
concerning: 22
(1) The procedures for obtaining a declaratory ruling; 23
(2) The procedures for assessments collected for sunflowers, safflowers, canola, or flax 24
grown or sold to a first purchaser; 25
(3) The procedures for obtaining a refund of the assessment; 26
(4) The procedures for collecting delinquent assessments and assessing penalties; and 27
(5) The record-keeping and reporting requirements of first purchasers; and 28
(6) The creation, distribution, and utilization of a form by which a grower may refuse 29
the imposition of an assessment, as set forth in § 38-27-11. 30
Section 9. That § 38-27-11 be AMENDED: 31 25.672.13 4 1165
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38-27-11. An assessment at the rate of four cents per hundredweight shall must 1
be levied and imposed upon all sunflowers, safflowers, and canola grown in the state or 2
sold to a first purchaser, and an assessment at the rate of one cent per bushel shall must 3
be levied and imposed upon all flax grown in the state or sold to a first purchaser. The 4
Except as otherwise provided for in section 10 of this Act, the assessment is due upon any 5
identifiable lot or quantity of sunflowers, safflowers, canola, or flax. 6
Section 10. That a NEW SECTION be added to chapter 38-27: 7
A grower may refuse the assessment imposed in accordance with § 38-27-11, by 8
completing a refusal form at the time of settlement. The form must contain the grower's 9
name, mailing address, date, and signature. The council shall provide the form to each 10
first purchaser of sunflowers, safflowers, canola, or flax and make the form available on 11
its website. 12
Section 11. That § 38-27-12 be AMENDED: 13
38-27-12. AnyUnless otherwise refused by the grower in accordance with section 14
10 of this Act, the first purchaser of sunflowers, safflowers, canola, or flax shall collect the 15
assessment imposed by this chapter by charging and collecting from the seller grower the 16
assessment at the prescribed rate, by deducting the assessment from the purchase price 17
of all sunflowers, safflowers, canola, or flax subject to the assessment and purchased by 18
the first purchaser. 19
Section 12. That § 38-27-16 be AMENDED: 20
38-27-16. Any If any grower subject to who has paid the assessment provided in 21
this chapter objects to the payment, the grower may , within sixty days following the 22
assessment, may payment, make application to the oilseeds council for a refund of the 23
assessment payment. Upon return of the refund application accompanied by a record of 24
the assessment payment by the first purchaser, the grower shall, within sixty days, be 25
refunded the net amount of the assessment collected payment. 26
However, aA grower, for any reason, having who paid the assessment more than 27
once on the same sunflowers, safflowers, canola, or flax, is, upon furnishing proof of this 28
to the council,-is entitled to a refund of the overpayment. 29
Section 13. That § 38-27-17 be AMENDED: 30 25.672.13 5 1165
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38-27-17. The oilseeds council, to inform the grower, shall develop and 1
disseminate information and instructions relating to the purpose of the oilseeds 2
assessment, the manner by which payment of an assessment may be refused, and the 3
manner in which refunds may be claimed , and to this extent shall cooperate with 4
governmental agencies, state and federal, and private businesses engaged in the purchase 5
of sunflowers, safflowers, canola, or flax. 6
Section 14. That § 38-29-1 be AMENDED: 7
38-29-1. Terms used in this chapter, unless the context plainly otherwise requires, 8
mean: 9
(1) "Council," the South Dakota Soybean Research and Promotion Council; 10
(2) "First purchaser," any person who initially places soybeans, whether as an owner 11
or agent, into the channels of trade and commerce, or who is engaged in the 12
processing of soybeans into any form. However, a grower who sells unharvested 13
soybeans, or delivers soybeans from the farm on which they are produced to 14
storage facilities, packing shed, or processing plant, within the state, is not a first 15
purchaser; 16
(3) "Grower," any person who plants, raises, and harvests soybeans from more than 17
ten acres; 18
(4) "Participating grower," a grower who has not refused to pay an assessment or 19
requested a refund from the payment of assessments on soybean production under 20
this chapter for a particular year and any person who owns or operates an 21
agricultural producing or growing facility for soybeans and shares in the profits and 22
risks of loss from such operation, and who produces soybeans in South Dakota 23
during the current or preceding marketing year; 24
(5) "Secretary," the secretary of the South Dakota Department of Agriculture and 25
Natural Resources; 26
(6) "Soybean," all varieties of soybeans marketed or harvested within the state; and 27
(7) "Net market price," the sale price received by a producer for soybeans after 28
adjustments for any premium or discount based on grading or quality factors. 29
Section 15. That § 38-29-7.1 be AMENDED: 30
38-29-7.1. The council may promulgate rules pursuant to chapter 1-26 31
concerning: 32
(1) The procedures for obtaining a declaratory ruling; 33 25.672.13 6 1165
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(2) The procedures for assessments collected for soybeans grown or sold to a first 1
purchaser; 2
(3) The procedures for obtaining a refund of the assessment; 3
(4) The procedures for collecting delinquent assessments and assessing penalties; 4
(5) The record-keeping and reporting requirements of first purchasers; and 5
(6) The requirements governing grants and loans made pursuant to § 38-29-7, 6
including eligibility requirements and requirements for application, awards, and 7
administration; and 8
(7) The creation, distribution, and utilization of a form by which a grower may refuse 9
the imposition of an assessment as set forth in § 38-29-8. 10
Section 16. That § 38-29-9 be AMENDED: 11
38-29-9. Any first purchaser of soybeans shall collect the assessment imposed by 12
this chapter by deducting the assessment from the purchase price of all soybeans subject 13
to the assessment and purchased by the first purchaser. This section does not apply if a 14
grower has refused imposition of the assessment by completing and providing the first 15
purchaser with a refusal form. The form must contain the grower's name, mailing address, 16
date, and signature. The council shall provide the form to each first purchaser of soybeans 17
and shall make the form available on its website. 18
Section 17. That a NEW SECTION be added: 19
A grower may refuse the imposition of the assessment as set forth in § 38-29-8, 20
by completing a refusal form at the time of settlement. The form must contain the grower's 21
name, mailing address, date, and signature. The commission shall provide the form to 22
each purchaser of soybeans and make the form available on its website. 23
Section 18. That § 38-32-1 be AMENDED: 24
38-32-1. Terms used in this chapter mean: 25
(1) "Bushel," fifty-six pounds of corn by weight; 26
(2) "Corn," all varieties of corn marketed within the state except sweet corn, popcorn, 27
or seed corn; 28
(3) "Council," the South Dakota Corn Utilization Council; 29
(4) "First purchaser," any person who buys, accepts for shipment, or otherwise 30
acquires corn from a grower, except any mortgagee, pledgee, lienor, or other 31 25.672.13 7 1165
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person having a claim against a grower if actual or constructive possession of such 1
corn is taken as partial payment or in satisfaction of such mortgage, pledge, lien, 2
or claim. However, first purchaser does not include sales between growers not for 3
resale; 4
(5) "Grower," any person who plants, raises, and harvests corn; 5
(6) "Participating grower," a grower who has not refused to pay an assessment or 6
requested a refund from the payment of assessments on corn production under 7
this chapter for a particular year, and any person who owns or operates an 8
agricultural producing or growing facility for corn and shares in the profits and risks 9
of loss from such operation, and who produces corn in South Dakota during the 10
current or preceding marketing year; 11
(7) "Secretary," the secretary of the South Dakota Department of Agriculture and 12
Natural Resources. 13
Section 19. That § 38-32-14 be AMENDED: 14
38-32-14. The council may promulgate rules pursuant to chapter 1-26 15
concerning: 16
(1) The procedures for obtaining a declaratory ruling; 17
(2) The procedures for assessments collected for corn sold to a first purchaser; 18
(3) The procedures for obtaining a refund of the assessment; 19
(4) The procedures for collecting delinquent assessments and assessing penalties; 20
(5) The record keeping and reporting requirements of first purchasers; and 21
(6) Procedures, forms, public notices, and other requirements for nominating director 22
candidates and for conducting and certifying elections; and 23
(7) The creation, distribution, and utilization of a form by which a grower may refuse 24
the imposition of an assessment, as set forth in § 38-32-15. 25
Section 20. That § 38-32-16 be AMENDED: 26
38-32-16. Every first purchaser of corn shall collect the assessment imposed by 27
this chapter by deducting the assessment from the purchase price of all corn subject to 28
the assessment and purchased by the first purchaser. This section does not apply if a 29
grower has refused imposition of the assessment by completing and providing the first 30
purchaser with a refusal form. The form must contain the grower's name, mailing address, 31
date, and signature. The council shall provide the form to each first purchaser of corn and 32
shall make the form available on its website. 33 25.672.13 8 1165
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Section 21. That § 38-32-20 be AMENDED: 1
38-32-20. AnyIf any grower subject to who has paid the assessment provided for 2
in this chapter objects to the payment, the grower may, within sixty days following such 3
the assessment, make application to the council for a refund of the assessment. Upon the 4
return of the refund application, accompanied by a record of the assessment by the first 5
purchaser, the grower shall, within sixty days, be refunded the net amount of the 6
assessment collected. However, aA grower who has paid the assessment more than once 7
on the same corn is entitled to a refund of the overpayment. 8
Section 22. That § 38-34-1 be AMENDED: 9
38-34-1. Terms used in this chapter mean: 10
(1) "Council," the South Dakota Pulse Crop Council; 11
(2) "First purchaser," any person, firm, corporation, association, partnership, agent, 12
or broker buying, accepting for sale, or otherwise acquiring pulse crops after 13
harvest from a grower. A grower selling unharvested pulse crops or delivering pulse 14
crops from the farm on which they are produced to storage facilities, packing shed, 15
or processing plant is not a first purchaser; 16
(3) "Grower," any person who is the legal initial owner of pulse crops harvested from 17
more than ten acres; 18
(4) "Participating grower," a grower who has not refused to pay an assessment or 19
requested a refund from the payment of assessments on pulse crops under this 20
chapter for the current or previous year; 21
(5) "Pulse crops," lentils, dry peas, chickpeas, and lupines; 22
(6) "Secretary," the secretary of the Department of Agriculture and Natural Resources. 23
Section 23. That § 38-34-8 be AMENDED: 24
38-34-8. The council shall promulgate rules pursuant to chapter 1-26 concerning: 25
(1) The procedures for obtaining a declaratory ruling; 26
(2) The procedures by which assessments are collected for pulse crops grown or sold 27
to a first purchaser; 28
(3) The procedures for obtaining a refund of the assessment; 29
(4) The procedures for collecting delinquent assessments and assessing penalties; and 30
(5) The record-keeping and reporting requirements of first purchasers; and 31 25.672.13 9 1165
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(6) The creation, distribution, and utilization of a form by which a grower may refuse 1
the imposition of an assessment, as set forth in § 38-34-10. 2
Section 24. That a NEW SECTION be added: 3
A grower may refuse the imposition of an assessment as set forth in § 38-34-10 4
by completing a refusal form at the time of settlement. The form must contain the grower's 5
name, mailing address, date, and signature. The council shall provide the form to each 6
purchaser of pulse crops and make the form available on its website. 7
Section 25. That § 38-34-10 be AMENDED: 8
38-34-10. An Except as otherwise provided for in section 24 of this Act, an 9
assessment at the rate of one percent of the net market price is levied and imposed on 10
any pulse crop grown or sold in South Dakota this state to a first purchaser. The council 11
may enter into reciprocal agreements with other states that also have a pulse checkoff to 12
remit the assessment to the state where the crop is grown. This assessment is due on any 13
identifiable lot or quantity of a pulse crop. 14
Section 26. That § 38-34-11 be AMENDED: 15
38-34-11. EachUnless otherwise refused by the grower, each first purchaser of 16
pulse crops shall collect the assessment imposed by this chapter by charging and collecting 17
from the seller the assessment at the prescribed rate, by deducting the assessment from 18
the purchase price of the crops subject to the assessment and purchased by the first 19
purchaser. The assessments shall must be paid to the department within thirty days of 20
the end of each calendar quarter. 21
Section 27. That § 38-34-14 be AMENDED: 22
38-34-14. In the case of a pledge or mortgage of pulse crops as security for a 23
loan under the federal price support program, unless otherwise refused by the grower in 24
accordance with section 24 of this Act, the assessment established under § 38-34-10 shall 25
must be deducted from the proceeds of the loan at the time the loan is made, or be 26
deducted thereafter by agencies of the federal government. The producer's note and loan 27
agreement, producer's note and supplemental loan agreement, or delivery instructions 28
issued by the federal agency to the grower fulfill the requirements for invoices, and these 29
documents constitute proof of payment of the assessment on the pulse crops. Forms 30 25.672.13 10 1165
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supplemental or alternate to those approved in this section that are provided by the 1
Commodity Credit Corporation of the United States Department of Agriculture and contain 2
the necessary information may be used for the purposes of this section. Identification 3
numbers created by the Commodity Credit Corporation for use in lieu of the name of the 4
grower from whom the assessment was collected are approved, if authorized officials of 5
the State of South Dakota this state have access at all reasonable times to records in the 6
United States Department of Agriculture Farm Service Agency county offices showing the 7
names of growers to whom such identification numbers have been assigned. 8
Section 28. That § 38-34-18 be AMENDED: 9
38-34-18. AnyIf any grower subject to who has paid the assessment provided in 10
this chapter objects to the payment, the grower , within sixty days following the 11
assessment, may apply to the council for a refund of the assessment. Upon return of the 12
refund application accompanied by a record of the assessment by the first purchaser, the 13
grower shall, within sixty days, be refunded the net amount of the assessment collected. 14
Additionally, a grower, who for any reason, pays the assessment more than once on the 15
same pulse crops, upon furnishing proof of this to the council, is entitled to a refund of 16
the overpayment. 17
Section 29. That § 38-34-19 be AMENDED: 18
38-34-19. The council shall develop and disseminate information and instructions 19
relating to the purpose of the pulse crop assessment, the manner by which payment of 20
an assessment may be refused, and the manner in which refunds may be claimed. 21