38-10-1
Policy of state.
38-10-2
Definition of terms.
38-10-3
Wheat commission--Members--Terms of office.
38-10-3.1
Independent functions retained by commission.
38-10-4
Qualifications of appointive members of commission.
38-10-5
Supervision of executive director.
38-10-6
Areas represented by appointive members of commission.
38-10-7
Terms of office of appointive members of commission--Vacancies.
38-10-8
Removal of wheat commission member.
38-10-9
Ex officio members of wheat commission--No vote.
38-10-10
Repealed.
38-10-11
Officers of wheat commission--Meetings.
38-10-12
Appointment of executive director--Compensation.
38-10-13
Repealed.
38-10-14
Powers of commission.
38-10-15
Formulation of general policies and programs for wheat promotion.
38-10-16
Wheat research and market development.
38-10-17
Research restricted to cooperation with other agencies.
38-10-18
Education and publicity program.
38-10-19
Cooperation with public and private organizations--Contracts.
38-10-20
Rules and regulations adopted by commission.
38-10-21
Commission records kept.
38-10-22
Promotional fee on wheat sold through commercial channels--Collection from first
purchaser.
38-10-23
Sales to federal government exempt from fee.
38-10-24
Fee applicable to wheat stored or sold outside state--Collection from grower.
38-10-25
Proof of purchase delivered by purchaser to grower--Contents.
38-10-26
Alteration of proof of purchase documents as misdemeanor.
38-10-27
Quarterly reports by wheat purchasers--Payment of fee.
38-10-28
Fee deducted when loan made by federal agency--Federal forms accepted in lieu of
invoice.
38-10-29
Supplemental and alternate forms used by commodity credit corporation.
38-10-30
Use by Commodity Credit Corporation of identification numbers--Access of state
officials to records.
38-10-31
Fee paid at time of federal loan as complete satisfaction.
38-10-32
Minor errors in fee collection overlooked.
38-10-33
Assessment of fee by director on failure to file report--Penalty--Time of payment.
38-10-34
Application for refund of fee erroneously collected--Time for refund--Waiver by
failure to file claim.
38-10-35
Deposit and appropriation of fees.
38-10-36
Repealed.
38-10-37
Violation of chapter as misdemeanor.
38-10-38
Citation of chapter.
38-10-39
Commission financial reports--Annual audit.
38-10-40
Liability for omissions.
38-10-41
Commission may contract with Public Utilities Commission to inspect assessment
and checkoff records.
38-10-1. Policy of state.
It is hereby declared to be the public policy of the State of South Dakota to protect and foster the health, prosperity, and general welfare of its people by protecting and stabilizing the wheat industry and the economy of the areas producing wheat. The wheat commission established by § 38-10-3 shall be the agency of the State of South Dakota for such purpose.
Source: SL 1961, ch 11, § 9.
38-10-2. Definition of terms.
Terms used in this chapter mean:
(1) "Commercial channels," the sale of wheat for any use, when sold to any commercial buyer, dealer, processor, cooperative, or to any person, public or private, who resells any wheat or product produced from wheat;
(2) "Commission" or "wheat commission," the Wheat Utilization, Research and Market Development Commission;
(3) "First purchaser," any person, public or private corporation, or partnership buying, accepting for shipment (either in state or out of state), or otherwise acquiring the property in or to wheat from a grower. The term includes a mortgagee, pledgee, lienor, or other person, public or private, having a claim against the grower, if the actual or constructive possession of the wheat is taken as part payment or in satisfaction of the mortgage, pledge, lien, or claim;
(4) "Grower," anyone personally engaged in growing wheat, including both the owner and tenant jointly, a person, partnership, limited liability company, association, corporation, cooperative, trust, sharecropper, and any other business units, devices, and arrangements;
(5) "Participating grower," a grower who has not requested a refund from the payment of the promotional fee for the past three years; and
(6) "Net market price," the sale price received by a grower for wheat after adjustment for any premium or discount based on grading or quality factors.
Source: SL 1961, ch 11, § 3; SL 1993, ch 302, § 1; SL 1994, ch 351, § 90; SL 2014, ch 193, § 1.
38-10-3. Wheat commission--Members--Terms of office.
There is hereby established a wheat commission for the utilization, research, and market development of wheat grown in South Dakota. The commission shall be composed of five members who shall be participating growers. The members of the commission shall be appointed by the Governor. Nominations for appointments shall be submitted to the Governor by wheat producers of the state.
The terms of members begin on October thirty-first of the calendar year in which the Governor appoints the member, unless otherwise designated by the Governor. The appointee's term is for three years and expires on October thirtieth in the third year of appointment.
Source: SL 1961, ch 11, §§ 2, 4 (4); SL 1993, ch 302, § 2; SL 2012, ch 16, § 23; SL 2013, ch 176, § 16; SL 2015, ch 203, § 12.
38-10-3.1. Independent functions retained by commission.
The Wheat Utilization, Research and Market Development Commission shall have the quasi-judicial, quasi-legislative, advisory, other administrative and special budgetary functions (as defined in § 1-32-1) vested in it.
Source: SL 1973, ch 2, § 134; SL 1993, ch 302, § 3.
38-10-4. Qualifications of appointive members of commission.
The wheat commission shall be composed of five members who:
(1) Are landowning residents of South Dakota;
(2) Are at least twenty-five years of age and residents of South Dakota;
(3) Have been actually engaged in growing wheat in this state for a period of at least five years;
(4) Derive a substantial portion of their income from growing wheat; and
(5) Are participating growers.
Source: SL 1961, ch 11, § 4 (2); SL 1993, ch 302, § 4.
38-10-5. Supervision of executive director.
With the exception of the ex officio members, the Governor shall appoint a commission to be known as the South Dakota Wheat Utilization, Research and Market Development Commission. The commission may appoint, advise, direct, and supervise an executive director of the Wheat Utilization, Research and Market Development Commission.
Source: SL 1961, ch 11, § 4 (1); SL 1973, ch 2, § 134; SL 1993, ch 302, § 5; SL 2013, ch 193, § 1.
38-10-6. Areas represented by appointive members of commission.
Two of the five members of the wheat commission referred to in §§ 38-10-4 and 38-10-5 shall be residents of and having farming operations in that area of the State of South Dakota west of the Missouri River; two of the members shall be residents of and having farming operations in that area of the State of South Dakota east of the Missouri River; and one member shall be selected as a member at large from the State of South Dakota. Members shall be selected with regard to representation of wheat classes and production in the state.
Source: SL 1961, ch 11, § 4 (3); SL 1993, ch 302, § 6.
38-10-7. Terms of office of appointive members of commission--Vacancies.
As the terms of office of appointees to the wheat commission expire, their successors shall be appointed by the Governor for a term of three years. Each member shall hold office until their successors are appointed and qualified. A member appointed to fill a vacancy occurring before the expiration of the term of a member separated from the commission for any cause, shall be appointed for the remainder of the term of the member whose office has been so vacated. No member may serve for more than four consecutive terms.
Source: SL 1961, ch 11, § 5; SL 1993, ch 302, § 7.
38-10-8. Removal of wheat commission member.
A member of the wheat commission shall be removable by the Governor for cause. In addition to all other causes, that a member ceases to be a resident of the state, live in the district from which he was appointed, or be actually engaged in growing wheat in the state shall be deemed sufficient cause for removal from office.
Source: SL 1961, ch 11, § 7.
38-10-9. Ex officio members of wheat commission--No vote.
Ex officio members of the wheat commission shall be the South Dakota secretary of agriculture and natural resources, the dean of agriculture of the South Dakota State University, and the president of the South Dakota Crop Improvement Association, such ex officio members not having a vote on the commission.
Source: SL 1961, ch 11, § 4 (2) (e); SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
38-10-11. Officers of wheat commission--Meetings.
The wheat commission shall elect a chairman, vice-chairman, secretary, and treasurer from among its members. The commission shall meet at least once every three months and at such other times as called by the chairman or by any two members of the commission.
Source: SL 1961, ch 11, § 8.
38-10-12. Appointment of executive director--Compensation.
The wheat commission may appoint a full-time executive director to carry out the provisions of this chapter. The executive director shall receive compensation as determined by the commission subject to § 38-10-14. The executive director may not be one of the appointed commission members.
Source: SL 1961, ch 11, § 2; SL 1973, ch 2, § 134; SDCL Supp, § 38-10-3.1; SL 1993, ch 302, § 8; SL 2013, ch 193, § 2.
38-10-14. Powers of commission.
In the administration of this chapter, the wheat commission may:
(1) Expend the funds collected pursuant to this chapter;
(2) Appoint, discharge, fix compensation for and prescribe the duties of such personnel as it may deem necessary subject to Bureau of Human Resources and Administration guidelines;
(3) Lease, purchase, own, equip, maintain, operate, and dispose of equipment in the commission office;
(4) Accept donations of funds, property, services, and other assistance from public, private, and other sources for the purpose of aiding and promoting the work and objectives of the commission;
(5) Appoint an attorney who shall act for the commission when needed;
(6) Establish an administrative office for the wheat commission in the State of South Dakota at a place suitable for the furtherance of this chapter.
Source: SL 1961, ch 11, § 10; SL 1993, ch 302, § 10; SL 2012, ch 23, § 99; SL 2013, ch 193, § 3; SL 2024, ch 1 (Ex. Ord. 24-1), § 35, eff. Apr. 8, 2024.
38-10-15. Formulation of general policies and programs for wheat promotion.
In connection with and in furtherance of the policy and purpose declared in § 38-10-1, the wheat commission shall have the power to formulate the general policies and programs of the State of South Dakota respecting the discovery, promotion, and development of markets and industries for the utilization of wheat grown within the State of South Dakota.
Source: SL 1961, ch 11, § 9 (1).
38-10-16. Wheat research and market development.
In connection with and in furtherance of the policy and purpose declared in § 38-10-1, the wheat commission may conduct, in addition to the things enumerated, any other program for the utilization, research, and market development of wheat grown in the State of South Dakota.
Source: SL 1961, ch 11, § 9 (5); SL 1993, ch 302, § 11.
38-10-17. Research restricted to cooperation with other agencies.
The wheat commission shall not be authorized to set up research or development units or agencies of its own, but shall limit its activity to cooperation and contracts with proper local, state, or national organizations, public or private, in carrying out the purposes of this chapter.
Source: SL 1961, ch 11, § 19.
38-10-18. Education and publicity program.
In connection with and in furtherance of the policy and purpose declared in § 38-10-1, the wheat commission shall have the power to adopt and devise a program of education and publicity.
Source: SL 1961, ch 11, § 9 (2).
38-10-19. Cooperation with public and private organizations--Contracts.
In connection with and in furtherance of the policy and purpose declared in § 38-10-1, the wheat commission may cooperate with local, state, or national organizations, whether public or private, in carrying out the purposes of this chapter, and may enter into such contracts as may be necessary.
Source: SL 1961, ch 11, § 9 (3); SL 1993, ch 302, § 12.
38-10-20. Rules and regulations adopted by commission.
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.
Source: SL 1961, ch 11, § 9(4); SL 1986, ch 326, § 14.
38-10-21. Commission records kept.
All records of the wheat commission shall be kept at least three years.
Source: SL 1961, ch 11, § 16 (3).
38-10-22. Promotional fee on wheat sold through commercial channels--Collection from first purchaser.
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 be assessed and imposed on the grower at the time of sale or delivery, and shall be collected and remitted by the first purchaser in the manner described by the commission pursuant to administrative rules promulgated pursuant to chapter 1-26. No wheat is subject to the fee more than once.
Source: SL 1961, ch 11, § 11; SL 1979, ch 264, § 1; SL 1985, ch 309, § 1; SL 1988, ch 311; SL 1990, ch 318, § 1; SL 2005, ch 210, § 1; SL 2014, ch 193, § 2.
38-10-23. Sales to federal government exempt from fee.
The fee, herein levied and imposed by the provisions of § 38-10-22, shall not apply to the sale of wheat to the federal government for ultimate use or consumption by the people of the United States, where the State of South Dakota is prohibited from imposing such fee by the Constitution of the United States and laws enacted pursuant thereto.
Source: SL 1961, ch 11, § 14.
38-10-24. Fee applicable to wheat stored or sold outside state--Collection from grower.
The fee established pursuant to § 38-10-22, shall 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 outside of the state for collecting the fee, 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.
Source: SL 1961, ch 11, § 13; SL 1993, ch 302, § 13.
38-10-25. Proof of purchase delivered by purchaser to grower--Contents.
The purchaser, at the time of settlement of the purchase, shall make and deliver a proof of purchase to the grower. This proof of purchase document may be a settlement sheet, a check stub, or other legible document showing:
(1) The name of the grower and seller;
(2) The name and address of the purchaser;
(3) The number of bushels of wheat sold;
(4) The date of the purchase; and
(5) The net market price.
Source: SL 1961, ch 11, § 15 (1); SL 1990, ch 318, § 2; SL 2014, ch 193, § 3.
38-10-26. Alteration of proof of purchase documents as misdemeanor.
The proof of purchase documents, referred to in § 38-10-25, shall be legibly written and have no corrections or erasures on the face thereof. Any person who alters any part of any proof of purchase documents in an attempt to defraud the wheat commission is guilty of a Class 2 misdemeanor.
Source: SL 1961, ch 11, § 15 (4); SL 1977, ch 190, § 302; SL 1993, ch 302, § 14.
38-10-27. Quarterly reports by wheat purchasers--Payment of fee.
The purchaser shall render and have on file a report with the commission by the thirtieth day following the end of each calendar quarter. The report shall be on forms provided by the commission and shall display the number of bushels of wheat purchased in the preceding quarter and the amount of fee being remitted. If no wheat was purchased, that information shall be so listed on the report.
Source: SL 1961, ch 11, § 15 (2); SL 1979, ch 264, § 2; SL 1990, ch 318, § 3.
38-10-28. Fee deducted when loan made by federal agency--Federal forms accepted in lieu of invoice.
In the case of a pledge or mortgage of wheat as security for a loan under the federal price support program, the fee assessed by § 38-10-22 shall be deducted from the proceeds of such loans at the time the loans are made, or be deducted thereafter by agencies of the federal government, and producer's note and loan agreement (commodity loan Form B) or 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 forms herein approved shall be deemed to constitute proof of payment of such promotional fee on the wheat listed thereon.
Source: SL 1961, ch 11, § 12 (1).
38-10-29. Supplemental and alternate forms used by commodity credit corporation.
Forms supplemental or alternate to those approved in § 38-10-28 which may be proposed by the Commodity Credit Corporation and contain the necessary information may be used without revision of this chapter.
Source: SL 1961, ch 11, § 12 (2).
38-10-30. Use by Commodity Credit Corporation of identification numbers--Access of state officials to records.
The Commodity Credit Corporation's use of identification numbers in lieu of the name of the grower from whom the fee was collected is hereby approved, such approval being in consideration of assurance received from the Commodity Credit Corporation that authorized officials of the State of South Dakota will have access at all reasonable times to records in the county agricultural stabilization and conservation offices showing the names of growers to whom such identification numbers have been assigned.
Source: SL 1961, ch 11, § 12 (3).
38-10-31. Fee paid at time of federal loan as complete satisfaction.
If such wheat, described in § 38-10-28, remains in farm storage for the duration of such pledge or mortgage, the promotional fee so paid at the time the loan was made shall be deemed a complete satisfaction of the promotional fee liability unless upon subsequent actual delivery of such wheat from farm storage in satisfaction of the pledge, or mortgage in the amount of one dollar or more, such underpayment being due solely for the necessity of estimating the quantity of wheat so placed in farm storage.
Source: SL 1961, ch 11, § 12 (4).
38-10-32. Minor errors in fee collection overlooked.
In connection with the collection of the wheat promotional fee on Commodity Credit Corporation wheat loans disbursed and purchase agreement settlement made, undercollections or overcollections of the wheat promotional fee amounting to one dollar or less as a result of errors, will not require collection of the underpayment or refund of the overpayment by commodity credit corporation and their responsibility in such cases shall be waived.
Source: SL 1961, ch 11, § 12 (5).
38-10-33. Assessment of fee by director on failure to file report--Penalty--Time of payment.
If any person, business or entity, public or private, subject to the fee under § 38-10-22, 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 fee according to his best judgment and information, which amount so fixed shall be prima facie correct, and such person so having failed to make such report shall, within ten days after notice of the amount of the fee so fixed and computed by the director is mailed to such person, pay said fee, together with a penalty of five percent on the amount of the fee or he 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 payment, but such shall be paid within ten days of notice of such decision.
Source: SL 1961, ch 11, § 15 (3); SL 1993, ch 302, § 15.
38-10-34. Application for refund of fee erroneously collected--Time for refund--Waiver by failure to file claim.
Any person, firm, or corporation subject to the fee provided in this chapter that objects to the collection of the fee may, within sixty days following the collection, 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 to the grower. If no request for refund has been made within sixty days after the collection of the fee, the grower shall be conclusively presumed to have agreed to the deduction.
Source: SL 1961, ch 11, § 17; SL 1985, ch 309, § 2; SL 1990, ch 318, § 4.
38-10-35. Deposit and appropriation of fees.
All moneys received on behalf of the wheat commission from the fees assessed in § 38-10-22, shall be deposited in a special revenue fund created in the state treasury and shall be continuously appropriated to the commission. Expenditures of these funds shall be disbursed solely by order of the commission in accordance with the provisions of Title 4 and the provisions of this chapter.
Source: SL 1961, ch 11, § 18; SL 1975, ch 62, § 2; SL 1993, ch 302, § 16.
38-10-37. Violation of chapter as misdemeanor.
Any person violating any of the provisions of this chapter is guilty of a Class 2 misdemeanor.
Source: SL 1961, ch 11, § 20; SL 1977, ch 190, § 303.
38-10-38. Citation of chapter.
This chapter may be cited as the South Dakota Wheat Resources Act.
Source: SL 1961, ch 11, § 1.
38-10-39. Commission financial reports--Annual audit.
The commission shall annually submit a financial report and informational budget to the secretary of agriculture and natural resources in accordance with § 4-7-7.2. Accounts of the commission are subject to annual audit by the auditor general.
Source: SL 1993, ch 302, § 17; SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
38-10-40. Liability for omissions.
No liability may be imposed upon the State of South Dakota for any acts, or omissions of the commission pursuant to this chapter.
Source: SL 1993, ch 302, § 18.
38-10-41. Commission may contract with Public Utilities Commission to inspect assessment and checkoff records.
The commission may contract with the Public Utilities Commission to inspect the records of licensed grain buyers to determine compliance with the assessment and checkoff requirements of this chapter. The contract shall cover the grain buyers to be inspected and the amount the commission shall reimburse the Public Utilities Commission for the inspections.
Source: SL 1996, ch 245, § 1; SL 2009, ch 196, § 1.