An Act to provide a means by which an agricultural producer can reject the imposition of an assessment on crops.

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

Section 1. That § 38-10-20 be AMENDED:

38-10-20. In connection with and in furtherance of the policy and purpose declared in § 38-10-1, the wheat commission may promulgate rules pursuant to chapter 1-26 concerning:

(1) The procedures for obtaining a declaratory ruling;

(2) The procedures for fee collection for wheat sold either in‑state or out‑of‑state;

(3) The procedures for obtaining a refund of the fee; and

(4) The procedures for collecting delinquent fees and assessing penalties; and

(5) The creation, distribution, and utilization of a form by which a grower may refuse the assessment and imposition of a promotional fee, as set forth in § 38-10-22.

Section 2. That § 38-10-22 be AMENDED:

38-10-22. There is hereby assessed a promotional fee of four-tenths of one percent of the value of the net market price per bushel upon all wheat sold through commercial channels in the State of South Dakota. The fee shall this state. Except as otherwise provided for in section 3 of this Act, the fee must be assessed and imposed on the grower at the time of sale or delivery, and shall must be collected and remitted by the first purchaser in the manner described by the commission pursuant to administrative , in rules promulgated pursuant to chapter 1-26. No wheat is subject to the fee more than once.

Section 3. That a NEW SECTION be added to chapter 38-10:

A grower may refuse the assessment and imposition of the promotional fee as set forth in § 38-10-22, by completing a refusal form at the time of settlement. The form must contain the grower's name, mailing address, date, and signature. The commission shall provide the form to each purchaser of wheat and make the form available on its website.

Section 4. That § 38-10-24 be AMENDED:

38-10-24. TheUnless otherwise refused by the grower in accordance with section 3 of this Act, the fee established pursuant to § 38-10-22, shall must be deducted, as provided by this chapter, whether such wheat is stored or sold in this or any other state. However, if agreements have not been made with dealers If collected, a dealer outside of the state for collecting shall remit the fee to the wheat commission, or the grower shall remit the fee to the wheat commission, as provided in administrative rules promulgated pursuant to chapter 1-26 on all wheat so sold by him outside the state.

Section 5. That § 38-10-28 be AMENDED:

38-10-28. In the case of a pledge or mortgage of wheat as security for a loan under the federal price support program, unless otherwise refused by the grower in accordance with section 3 of this Act, the fee assessed by established pursuant to § 38-10-22 shall must be deducted from the proceeds of such the loans at the time the loans are made, or be deducted thereafter by agencies of the federal government, and. A producer's note and loan agreement (commodity loan Form B) or, a producer's note and supplemental loan agreement (commodity loan Form A), or delivery instructions (commodity purchaser Form 3) issued by the federal agency to the grower are hereby approved as fulfilling the requirements for invoices, and the approved forms herein approved shall be are deemed to constitute proof of payment of such the promotional fee on the wheat listed thereon.

Section 6. That § 38-10-33 be AMENDED:

38-10-33. If any person, business or entity, public or private, has not refused the assessment and imposition of the promotional fee and is thereby subject to the payment of the fee under § 38-10-22, and if the person fails to make a report and remittance when and as required in this chapter, the executive director of the wheat commission shall determine the amount of such the fee according to his the director's best judgment and information, which amount so fixed shall must be prima facie correct, and such the person so having who failed to make such the report shall, within ten days after notice of the amount of the fee so fixed and computed by the director is mailed to such the person, pay said the fee, together with a penalty of five percent on the amount of the fee or he may. The person may dispute the fee as fixed by the director and request the commission to hold a hearing to determine the amount of the fee and penalty to be imposed. No payment may be made until the commission enters its order determining the amount of such the payment, but such shall be paid once determined, payment must be made within ten days of notice of such decision.

Section 7. That § 38-10-34 be AMENDED:

38-10-34. Any person, firm, or corporation subject toIf any person who has paid the fee provided in this chapter that objects to the collection of the fee payment, the person may, within sixty days following the collection payment, apply to the wheat commission for a refund of the fee. Upon the return of the refund application, accompanied by a true, legible record of the invoices delivered by the purchaser to the grower, the commission shall, within thirty days, refund the net amount of the fee collected paid to the grower. If no request for refund has been made within sixty days after the collection payment of the fee, the grower shall be is conclusively presumed to have agreed to the deduction fee.

Section 8. That § 38-27-8.1 be AMENDED:

38-27-8.1. The council may promulgate rules pursuant to chapter 1-26 concerning:

(1) The procedures for obtaining a declaratory ruling;

(2) The procedures for assessments collected for sunflowers, safflowers, canola, or flax grown or sold to a first purchaser;

(3) The procedures for obtaining a refund of the assessment;

(4) The procedures for collecting delinquent assessments and assessing penalties; and

(5) The record‑keeping and reporting requirements of first purchasers; and

(6) The creation, distribution, and utilization of a form by which a grower may refuse the imposition of an assessment, as set forth in § 38-27-11.

Section 9. That § 38-27-11 be AMENDED:

38-27-11. An assessment at the rate of four cents per hundredweight shall must be levied and imposed upon all sunflowers, safflowers, and canola grown in the state or sold to a first purchaser, and an assessment at the rate of one cent per bushel shall must be levied and imposed upon all flax grown in the state or sold to a first purchaser. The Except as otherwise provided for in section 10 of this Act, the assessment is due upon any identifiable lot or quantity of sunflowers, safflowers, canola, or flax.

Section 10. That a NEW SECTION be added to chapter 38-27:

A grower may refuse the assessment imposed in accordance with § 38-27-11, by completing a refusal form at the time of settlement. The form must contain the grower's name, mailing address, date, and signature. The council shall provide the form to each first purchaser of sunflowers, safflowers, canola, or flax and make the form available on its website.

Section 11. That § 38-27-12 be AMENDED:

38-27-12. AnyUnless otherwise refused by the grower in accordance with section 10 of this Act, the first purchaser of sunflowers, safflowers, canola, or flax shall collect the assessment imposed by this chapter by charging and collecting from the seller grower the assessment at the prescribed rate, by deducting the assessment from the purchase price of all sunflowers, safflowers, canola, or flax subject to the assessment and purchased by the first purchaser.

Section 12. That § 38-27-16 be AMENDED:

38-27-16. Any If any grower subject to who has paid the assessment provided in this chapter objects to the payment, the grower may, within sixty days following the assessment, may payment, make application to the oilseeds council for a refund of the assessment payment. Upon return of the refund application accompanied by a record of the assessment payment by the first purchaser, the grower shall, within sixty days, be refunded the net amount of the assessment collected payment.

However, aA grower, for any reason, having who paid the assessment more than once on the same sunflowers, safflowers, canola, or flax, is, upon furnishing proof of this to the council,-is entitled to a refund of the overpayment.

Section 13. That § 38-27-17 be AMENDED:

38-27-17. The oilseeds council, to inform the grower, shall develop and disseminate information and instructions relating to the purpose of the oilseeds assessment, the manner by which payment of an assessment may be refused, and the manner in which refunds may be claimed, and to this extent shall cooperate with governmental agencies, state and federal, and private businesses engaged in the purchase of sunflowers, safflowers, canola, or flax.

Section 14. That § 38-29-1 be AMENDED:

38-29-1. Terms used in this chapter, unless the context plainly otherwise requires, mean:

(1) "Council," the South Dakota Soybean Research and Promotion Council;

(2) "First purchaser," any person who initially places soybeans, whether as an owner or agent, into the channels of trade and commerce, or who is engaged in the processing of soybeans into any form. However, a grower who sells unharvested soybeans, or delivers soybeans from the farm on which they are produced to storage facilities, packing shed, or processing plant, within the state, is not a first purchaser;

(3) "Grower," any person who plants, raises, and harvests soybeans from more than ten acres;

(4) "Participating grower," a grower who has not refused to pay an assessment or requested a refund from the payment of assessments on soybean production under this chapter for a particular year and any person who owns or operates an agricultural producing or growing facility for soybeans and shares in the profits and risks of loss from such operation, and who produces soybeans in South Dakota during the current or preceding marketing year;

(5) "Secretary," the secretary of the South Dakota Department of Agriculture and Natural Resources;

(6) "Soybean," all varieties of soybeans marketed or harvested within the state; and

(7) "Net market price," the sale price received by a producer for soybeans after adjustments for any premium or discount based on grading or quality factors.

Section 15. That § 38-29-7.1 be AMENDED:

38-29-7.1. The council may promulgate rules pursuant to chapter 1-26 concerning:

(1) The procedures for obtaining a declaratory ruling;

(2) The procedures for assessments collected for soybeans grown or sold to a first purchaser;

(3) The procedures for obtaining a refund of the assessment;

(4) The procedures for collecting delinquent assessments and assessing penalties;

(5) The record‑keeping and reporting requirements of first purchasers; and

(6) The requirements governing grants and loans made pursuant to § 38-29-7, including eligibility requirements and requirements for application, awards, and administration; and

(7) The creation, distribution, and utilization of a form by which a grower may refuse the imposition of an assessment as set forth in § 38-29-8.

Section 16. That § 38-29-9 be AMENDED:

38-29-9. Any first purchaser of soybeans shall collect the assessment imposed by this chapter by deducting the assessment from the purchase price of all soybeans subject to the assessment and purchased by the first purchaser. This section does not apply if a grower has refused imposition of the assessment by completing and providing the first purchaser with a refusal form. The form must contain the grower's name, mailing address, date, and signature. The council shall provide the form to each first purchaser of soybeans and shall make the form available on its website.

Section 17. That a NEW SECTION be added:

A grower may refuse the imposition of the assessment as set forth in § 38-29-8, by completing a refusal form at the time of settlement. The form must contain the grower's name, mailing address, date, and signature. The commission shall provide the form to each purchaser of soybeans and make the form available on its website.

Section 18. That § 38-32-1 be AMENDED:

38-32-1. Terms used in this chapter mean:

(1) "Bushel," fifty‑six pounds of corn by weight;

(2) "Corn," all varieties of corn marketed within the state except sweet corn, popcorn, or seed corn;

(3) "Council," the South Dakota Corn Utilization Council;

(4) "First purchaser," any person who buys, accepts for shipment, or otherwise acquires corn from a grower, except any mortgagee, pledgee, lienor, or other person having a claim against a grower if actual or constructive possession of such corn is taken as partial payment or in satisfaction of such mortgage, pledge, lien, or claim. However, first purchaser does not include sales between growers not for resale;

(5) "Grower," any person who plants, raises, and harvests corn;

(6) "Participating grower," a grower who has not refused to pay an assessment or requested a refund from the payment of assessments on corn production under this chapter for a particular year, and any person who owns or operates an agricultural producing or growing facility for corn and shares in the profits and risks of loss from such operation, and who produces corn in South Dakota during the current or preceding marketing year;

(7) "Secretary," the secretary of the South Dakota Department of Agriculture and Natural Resources.

Section 19. That § 38-32-14 be AMENDED:

38-32-14. The council may promulgate rules pursuant to chapter 1-26 concerning:

(1) The procedures for obtaining a declaratory ruling;

(2) The procedures for assessments collected for corn sold to a first purchaser;

(3) The procedures for obtaining a refund of the assessment;

(4) The procedures for collecting delinquent assessments and assessing penalties;

(5) The record keeping and reporting requirements of first purchasers; and

(6) Procedures, forms, public notices, and other requirements for nominating director candidates and for conducting and certifying elections; and

(7) The creation, distribution, and utilization of a form by which a grower may refuse the imposition of an assessment, as set forth in § 38-32-15.

Section 20. That § 38-32-16 be AMENDED:

38-32-16. Every first purchaser of corn shall collect the assessment imposed by this chapter by deducting the assessment from the purchase price of all corn subject to the assessment and purchased by the first purchaser. This section does not apply if a grower has refused imposition of the assessment by completing and providing the first purchaser with a refusal form. The form must contain the grower's name, mailing address, date, and signature. The council shall provide the form to each first purchaser of corn and shall make the form available on its website.

Section 21. That § 38-32-20 be AMENDED:

38-32-20. AnyIf any grower subject to who has paid the assessment provided for in this chapter objects to the payment, the grower may, within sixty days following such the assessment, make application to the council for a refund of the assessment. Upon the return of the refund application, accompanied by a record of the assessment by the first purchaser, the grower shall, within sixty days, be refunded the net amount of the assessment collected. However, aA grower who has paid the assessment more than once on the same corn is entitled to a refund of the overpayment.

Section 22. That § 38-34-1 be AMENDED:

38-34-1. Terms used in this chapter mean:

(1) "Council," the South Dakota Pulse Crop Council;

(2) "First purchaser," any person, firm, corporation, association, partnership, agent, or broker buying, accepting for sale, or otherwise acquiring pulse crops after harvest from a grower. A grower selling unharvested pulse crops or delivering pulse crops from the farm on which they are produced to storage facilities, packing shed, or processing plant is not a first purchaser;

(3) "Grower," any person who is the legal initial owner of pulse crops harvested from more than ten acres;

(4) "Participating grower," a grower who has not refused to pay an assessment or requested a refund from the payment of assessments on pulse crops under this chapter for the current or previous year;

(5) "Pulse crops," lentils, dry peas, chickpeas, and lupines;

(6) "Secretary," the secretary of the Department of Agriculture and Natural Resources.

Section 23. That § 38-34-8 be AMENDED:

38-34-8. The council shall promulgate rules pursuant to chapter 1-26 concerning:

(1) The procedures for obtaining a declaratory ruling;

(2) The procedures by which assessments are collected for pulse crops grown or sold to a first purchaser;

(3) The procedures for obtaining a refund of the assessment;

(4) The procedures for collecting delinquent assessments and assessing penalties; and

(5) The record-keeping and reporting requirements of first purchasers; and

(6) The creation, distribution, and utilization of a form by which a grower may refuse the imposition of an assessment, as set forth in § 38-34-10.

Section 24. That a NEW SECTION be added:

A grower may refuse the imposition of an assessment as set forth in § 38-34-10 by completing a refusal form at the time of settlement. The form must contain the grower's name, mailing address, date, and signature. The council shall provide the form to each purchaser of pulse crops and make the form available on its website.

Section 25. That § 38-34-10 be AMENDED:

38-34-10. An Except as otherwise provided for in section 24 of this Act, an assessment at the rate of one percent of the net market price is levied and imposed on any pulse crop grown or sold in South Dakota this state to a first purchaser. The council may enter into reciprocal agreements with other states that also have a pulse checkoff to remit the assessment to the state where the crop is grown. This assessment is due on any identifiable lot or quantity of a pulse crop.

Section 26. That § 38-34-11 be AMENDED:

38-34-11. EachUnless otherwise refused by the grower, each first purchaser of pulse crops shall collect the assessment imposed by this chapter by charging and collecting from the seller the assessment at the prescribed rate, by deducting the assessment from the purchase price of the crops subject to the assessment and purchased by the first purchaser. The assessments shall must be paid to the department within thirty days of the end of each calendar quarter.

Section 27. That § 38-34-14 be AMENDED:

38-34-14. In the case of a pledge or mortgage of pulse crops as security for a loan under the federal price support program, unless otherwise refused by the grower in accordance with section 24 of this Act, the assessment established under § 38-34-10 shall must be deducted from the proceeds of the loan at the time the loan is made, or be deducted thereafter by agencies of the federal government. The producer's note and loan agreement, producer's note and supplemental loan agreement, or delivery instructions issued by the federal agency to the grower fulfill the requirements for invoices, and these documents constitute proof of payment of the assessment on the pulse crops. Forms supplemental or alternate to those approved in this section that are provided by the Commodity Credit Corporation of the United States Department of Agriculture and contain the necessary information may be used for the purposes of this section. Identification numbers created by the Commodity Credit Corporation for use in lieu of the name of the grower from whom the assessment was collected are approved, if authorized officials of the State of South Dakota this state have access at all reasonable times to records in the United States Department of Agriculture Farm Service Agency county offices showing the names of growers to whom such identification numbers have been assigned.

Section 28. That § 38-34-18 be AMENDED:

38-34-18. AnyIf any grower subject to who has paid the assessment provided in this chapter objects to the payment, the grower, within sixty days following the assessment, may apply to the council for a refund of the assessment. Upon return of the refund application accompanied by a record of the assessment by the first purchaser, the grower shall, within sixty days, be refunded the net amount of the assessment collected. Additionally, a grower, who for any reason, pays the assessment more than once on the same pulse crops, upon furnishing proof of this to the council, is entitled to a refund of the overpayment.

Section 29. That § 38-34-19 be AMENDED:

38-34-19. The council shall develop and disseminate information and instructions relating to the purpose of the pulse crop assessment, the manner by which payment of an assessment may be refused, and the manner in which refunds may be claimed.