PIERRE, S.D. (AP) — The South Dakota Senate on Thursday unanimously passed a proposal to make it a felony for anyone who brokers a grain purchase with an unlicensed buyer.
The state requires grain buyers to have a license as part of a way to protect payments for farmers. Authorities have said there is an increase in brokers, who set up the transaction for a commission, and some of them have used unlicensed grain buyers.
“We do need to say that setting up an illegal deal ought to be illegal,” Public Utilities Commissioner Chris Nelson told a committee considering the bill last week.
Officials considered requiring brokers to be licensed but settled on making it a class 5 felony as a deterrent. The maximum sentence would be five years in prison and a $10,000 fine.
The bill will next head to the House.