South Dakota Grain Warehousemen Bond Claim Process Updated

South Dakota Grain Warehousemen Bond

Regulations for grain warehouses, grain buyers and warehouse receipts in South Dakota were revised on February 24, 2012, when Gov. Dennis Daugaard signed South Dakota HB 1036 into law. One aspect of HB 1036 revised the claims process for the South Dakota grain warehousemen bond.

Under the previous law, individuals who wanted to make a claim on a grain bond had to first notify the Public Utilities Commission. Claimants could only move forward with the claims process if the Commission wasn’t already involved. For example, if the Commission was in the process of investigating a grain professional, the harmed party could not make a claim on the bond.

With the passing of HB 1036, the Commission must now respond to an individual’s claim notice in writing within 60 days. If the Commission fails to reply or takes more than 60 days to respond, the individual can proceed with making claim on the South Dakota grain warehousemen bond, regardless of the Commission’s involvement.

Private citizens can now file claims against grain warehouseman more easily, which gives South Dakota grain purchasers more confidence in the market. In short, HB 1036 gives grain warehousemen even greater incentive to run their operations according to law.

If you need a grain warehousemen surety bond in South Dakota or anywhere else, you can contact a surety specialist online or by phone at 1 (800) 308-4358. These bonds ensure that grain warehousemen will work according to law, thus limiting instances of fraud, financial mismanagement and other issues.

For more information on grain warehouse regulations, you can contact the Warehouse Division of the South Dakota Public Utilities Commission at (605) 773-3201.