This bill amends several sections of South Dakota law regarding agricultural processor's liens, specifically focusing on the requirements for obtaining and perfecting such liens. Key amendments include the requirement for lienholders to file a financing statement electronically with the Secretary of State within sixty days of completing the processing of a crop. The financing statement must include specific information such as the names and addresses of the lienholder and the service recipient, the amount due, and details about the agricultural products involved. Additionally, the bill introduces a new section that mandates notification to potential purchasers or consignees if the agricultural products are to be sold or consigned before the lien is perfected.

The bill also clarifies the priority of the lien, stating that it takes precedence over other liens if filed within the specified timeframe. It establishes that if a lien claimant does not initiate enforcement action within sixty days of filing, the lien will be terminated, allowing the person for whom the processing was done to expunge the financing statement. Furthermore, the bill specifies that the provisions of certain existing laws do not apply to these agricultural liens, and it sets an effective date for the new regulations starting July 1, 2027.

Statutes affected:
Introduced, 01/21/2026: 38-17-14, 38-17-15, 38-17-16, 38-17-19
House Agriculture and Natural Resources Engrossed, 02/03/2026: 38-17-14, 38-17-15, 38-17-16, 38-17-19
Enrolled, 02/23/2026: 38-17-14, 38-17-15, 38-17-16, 38-17-19