Call Us: 605.224.4418

SD WHEAT INC., 3-7-2017 Legislative Update – SD Wheat Commission


3-7-2017 Legislative Update

For questions contact Caren at the SDWI office at 605-224-4418.



HB 1038  An Act to repeal the requirement for farm corporations to file farm annual reports with the secretary of State.  This bill is a duplicate of information already being provided.  HB 1038 was brought by the Sec. of State’s Office for several reasons:  Signed by the Governor.

HB 1027:  allow two-wheeled off-road vehicles that meet certain requirements to be registered and licensed. Adds “any off-road vehicle with two wheels and with a combustion engine having a piston or rotor displacement of one hundred twenty cubic centimeters or more” to be licensed.     Signed by the Governor

FAILED  HB 1094:  An Act to provide for the transfer of certain landowner hunting licenses.
Any license for the hunting of east river deer, west river deer, or antelope issued to a person eighteen years of age or older, may be transferred, with or without payment or consideration, to any resident who is qualified to apply for hunting privileges in this state. However, no license may be transferred unless the transferor owns or operates at least six hundred forty acres of agricultural, grazing, or timber land. The license may only be used on land owned or leased by the transferor. No more than two licenses may be transferred from an immediate family.  Failed House Floor YEAS 16  NAYS 52.


HB 1124: An Act to exempt a person with a commercial driver license from the requirement to have a hazardous materials endorsement on the license under certain conditions.
A person with a commercial driver license is not required to obtain a hazardous materials endorsement pursuant to this chapter if the person is: (1)    Acting within the scope the of person’s employment as an employee of a custom harvester operation; and (2)    Operating a service vehicle that is transporting diesel fuel in quantity of one thousand gallons or less and that is clearly marked with a flammable or combustible placard.  Passed the House sent to Senate.  Passed Senate and signed by the Speaker and President.



SB 7  An Act to revise the criteria for determining if property is classed as agricultural land for property tax purposes.  Passed Senate Taxation & Passed Senate floor 30 Yeas 5 Nays.  Passed House Floor 64 Yeas and 3 Nays.  Signed by the President.

FAILED SB 9 An Act to revise the river basin natural resource district boundaries, to establish sub districts for each district and to establish a procedure to adjust district boundaries.  Heard in Senate Ag and deferred to the 41st day.

SB 21 An Act to revise certain provisions related to public grain warehouses and grain buyers. Passed Senate Ag YEAS 33  NAYS 0. Passed from Senate Ag to Senate Floor amended.  Passed floor 56 Yeas 0 Nays.

SB 22:  exempt certain unmanned aircraft systems from the requirement to be registered as aircraft. Drones of a certain size would be exempt. Senate Transportation passed 7-0 Jan 18.  Passed Seante Floor YEAS 33 NAYS 0.  Passed House Transportation and sent to floor.

SB 39 An Act to allow owners to affix vehicle identification numbers on certain trailers.  Heard in Senate Transportation and passed YEAS 7 NAYS 0.  Passed Senate Floor YEAS 33 NAYS 0.  Passed Senate  Transportation YEAS 7 NAYS 0.  Passed Senate Floor YEAS 33 NAYS 0.  Passed House Trasportation  12 Yeas 0 Nays. Passed House floor 56 Yeas 0 Nays.

SB 66 An Act to specifically classify certain agricultural land as riparian buffer strips, to establish the criteria for the riparian buffer strip classification, and to provide for the taxation thereof.   The riparian buffer strip shall be assessed at sixty percent of its agricultural income value.  The bill list criteria and eligible rivers, streams, or lakes.   Passed Senate Floor amended sent to House taxation ammended.  Passed House  62 Yeas 5 Nays.

SB 80 Purpose: regulate the use of drones under certain conditions and to provide a penalty therefor.  Passed Senate passed on to House floor amended.

Defeated; SB 142 Purpose: provide for the assessment and taxation of agricultural land based on its actual use.

Defeated: SB 148 To make an appropriation to the Department of Agriculture for enhancement of the farm link program.

Defeated: SB 162: Authorize the Board of Regents to contract for the design, renovation of, and addition to, the Animal Disease Research and Diagnostic Laboratory on the campus of South Dakota State University and to make an appropriation therefor.  Passed Joint Appropriations 10 Yeas 3 Nays.

FAILED SB 170: To revise certain provisions regarding the maximum width restriction for farm implements operated on a public highway.  No motor vehicle may operate upon a public highway if the width, measured at the widest points, either of the vehicle or the load, exceeds one hundred two inches, excluding any required safety equipment, or for farm machinery, exceeds two hundred sixteen inches. Sent to 41st day.

SB 172:  An Act to authorize the South Dakota Building Authority to provide for the construction of and improvements to the State Animal Disease Research and Diagnostic Laboratory and infrastructure at South Dakota State University, to increase and establish certain agricultural fees, to transfer certain funds, to make an appropriation, and to declare an emergency.  Sent to Joint Appropriations. Passed Senate.  Sent to House Floor.  Being heard today.


As noted by President Stomprud, SDCA is fully supportive of upgrading and expanding the ADRDL, but we would like to see a larger portion of the cost borne by the state, thus relieving the fee burden on the livestock industry that is called for in the Governor’s plan.  We urge livestock producers to be patient, as additional ideas for funding the state vet lab project continue to come forward from legislators.  It is likely the final funding package will not be completed until the budget is settled in the final days of Session and we will keep our members apprised as the process continues.

The total cost of the project is pegged at $68,153,637.  Taking into account funds already expended and reductions identified, the remaining funds needed are $58,639,637.  Funding proposals in SB 172 include:

State General Funds:

  • $6,000,000 SDSU/ADRDL available contribution
  • $5,000,000 One-Time State General Funds
  • $1,500,000 State General Funds

Agriculture Industry:

  • Feed Tonnage Fee: 3,000,000 tons/year * $0.55/ton = $1,650,000
  • Vet Inspection Fee: 2,800,000 inspections/year * $0.30 = $840,000
  • Animal Remedy Exemption Repeal: 700 products * $75.00 = $52,500
  • Animal Remedy Fee: 1,520 products * $62.50 = $95,000
  • Poultry Health Fee: 6,785,000 birds/year * $0.05 = $339,250
  • Raw Milk Assessment Fee: 21,428,571 cwt * $0.004 = $85,714

Total Revenue for Bond Payment = $3,062,464 /year.