(4) Expiration; nontransferable.
The An annual warehouse keeper's certificate of registration
license expires on August 31 of each year and is not transferable.
(5) Display. A warehouse keeper shall display prominently a copy of the annual warehouse keeper's certificate of registration license in each business location warehouse in this state operated by the warehouse keeper.
42,32
Section 32
. 127.03 (title) and (1) of the statutes are repealed and recreated to read:
127.03 (title) Grain dealers licenses and fees. (1) Requirement. (a) Except as provided in par. (d), no person may do any of the following:
1. Operate as a Class A grain dealer unless the person holds an annual license from the department as a Class A grain dealer.
2. Operate as a Class B grain dealer unless the person holds an annual license from the department as a Class A grain dealer or a Class B grain dealer.
3. Operate as a Class B2 grain dealer unless the person holds an annual license from the department as a Class A grain dealer, a Class B grain dealer or a Class B2 grain dealer.
(b) No grain dealer may claim to be bonded or claim to have filed security with the department for the benefit of producers unless that grain dealer holds an annual license from the department as a Class A grain dealer, a Class B grain dealer or a Class B2 grain dealer.
(c) A Class C grain dealer is not required to be licensed but may voluntarily apply for and receive an annual license from the department as a Class C grain dealer.
(d) Paragraph (a) does not apply to an exempt grain dealer.
42,33
Section 33
. 127.03 (2) of the statutes is amended to read:
127.03 (2) Application. An application for an annual grain dealer's certificate of registration license shall be filed on a form prescribed by the department. The application shall include information reasonably required by the department for registration licensing purposes. An application shall be accompanied by all applicable fees and surcharges under sub. (3).
42,34
Section 34
. 127.03 (3) (title) and (a) (intro.) of the statutes are amended to read:
127.03 (3) (title) Registration License fees. (a) (intro.) The fee for an annual grain dealer's certificate of registration shall be license is as follows:
42,35
Section 35
. 127.03 (3) (a) 2. of the statutes is amended to read:
127.03 (3) (a) 2. For a Class B grain dealer, $175 plus a surcharge of $250 if the grain dealer's financial statement under s. 127.06 (2) is not audited.
42,36
Section 36
. 127.03 (3) (a) 2m. of the statutes is created to read:
127.03 (3) (a) 2m. For a Class B2 grain dealer, $50.
42,37
Section 37
. 127.03 (3) (a) 3. of the statutes is amended to read:
127.03 (3) (a) 3. For a Class C grain dealer
voluntarily licensed under sub. (1) (c), $50.
42,38
Section 38
. 127.03 (3) (b) of the statutes is amended to read:
127.03 (3) (b) In addition to the fee specified under par. (a), if a grain dealer operates more than one truck, the grain dealer shall pay an additional registration
license fee of $10 for each additional truck that he or she
the grain dealer uses for dealing in grain.
42,39
Section 39
. 127.03 (3) (bg) of the statutes is amended to read:
127.03 (3) (bg) An Except as provided in par. (bk), an applicant for an annual grain dealer's certificate of registration license shall pay a registration license fee surcharge of $500 if the department determines that, within 365 days prior to submitting an application for a grain dealer's certificate of registration license, the applicant acted as a grain dealer without a certificate of registration in violation of license required in sub. (1). Payment of the registration license fee surcharge does not relieve the applicant of other civil or criminal liability that may result from acting as a grain dealer without a certificate of registration license required in sub. (1), but does not constitute evidence of a violation of law.
42,40
Section 40
. 127.03 (3) (bk) of the statutes is created to read:
127.03 (3) (bk) If a grain dealer held a license as a Class B2 grain dealer but operated as a Class A grain dealer or a Class B grain dealer, the surcharge under par. (bg) is $250 rather than $500.
42,41
Section 41
. 127.03 (3m), (4) and (5) of the statutes are amended to read:
127.03 (3m) (title) Registration Licensing contingent on payment of fees and surcharge. The department may not issue or renew a certificate of registration license under sub. (1) unless the applicant pays all fees and any applicable surcharge under sub. (3), as set forth in a statement from the department. The department shall refund a fee or surcharge paid under protest if the department determines that the fee or surcharge was not required to be paid as a condition of registration under this section.
(4) Expiration; nontransferable.
The An annual grain dealer's certificate of registration license expires on August 31 of each year and is not transferable.
(5) Display. A grain dealer shall display prominently a copy of the annual grain dealer's certificate of registration annual license on each truck used that the grain dealer uses for dealing in grain operated by the grain dealer and. A grain dealer shall also display a copy of the grain dealer's annual license at the grain dealer's permanent business address, if he or she the grain dealer is required to maintain a permanent business address under s. 127.10 (6).
42,42
Section 42
. 127.04 of the statutes is amended to read:
127.04 Applicability to nonresident grain dealers. A nonresident grain dealer, not maintaining an office or place of business in this state, engaged in this state in buying grain from or selling who buys grain from or sells grain for producers who produced the grain in this state, is subject to registration and other provisions of this chapter relating to the purchase or sale of grain, whether or not the purchase or sale transaction takes without regard to whether those purchases or sales take place wholly or in part in this state and without regard to whether the grain dealer maintains an office or place of business in this state.
42,43
Section 43
. 127.05 of the statutes is amended to read:
127.05 Warehouse keeper's insurance. (1) Requirement; exception. A warehouse keeper shall file and maintain with the department a certificate or other satisfactory evidence of fire and extended coverage insurance issued by an insurance company authorized to do business in this state insuring that insures all grain in the custody of the warehouse keeper, whether held for others or owned by the warehouse keeper, at the full local market value of the grain. The requirements of this section do not apply to an exempt warehouse keeper unless the warehouse keeper holds himself or herself out as a bonded warehouse keeper.
(2) (title) Cancellation and replacement. An insurance policy required under this chapter sub. (1) shall provide that the policy may not be canceled by the warehouse keeper or insurance company except on 30 days' prior written notice served on the department in person or by certified mail. The warehouse keeper shall obtain satisfactory replacement insurance and shall file satisfactory evidence of that replacement insurance with the department within the 30-day period and prior to the expiration of the policy 20 days after the cancellation notice is served on the department and at least 10 days before the cancellation takes effect. The department shall suspend the registration license of a warehouse keeper without prior notice or hearing if the warehouse keeper does not secure and file satisfactory evidence of replacement insurance as required under this section.
42,44
Section 44
. 127.05 (3) and (4) of the statutes are created to read:
127.05 (3) Insurance disclosure. Before storing grain for any depositor, a warehouse keeper, including an exempt warehouse keeper, shall clearly disclose in writing and post in a conspicuous location, observable by the public, all of the following information:
(a) Whether the grain is insured against fire and other natural perils, including a listing of the types of perils covered.
(b) Whether the warehouse keeper has liability insurance covering the warehouse keeper's grain storage operations and whether the insurance covers liability resulting from fraud or malfeasance by the warehouse keeper.
(4) Deductibles. Neither an insurance policy under sub. (1) nor a warehouse keeper's liability insurance policy may contain any deductible clause that limits the insurer's liability to depositors for the full value of the depositor's covered losses under the policy. This subsection does not prohibit a clause under which the warehouse keeper agrees to indemnify the insurer for a portion of each claim by a depositor that is paid by the insurer under the policy, as long as the clause does not limit the insurer's obligation to pay each depositor.
42,45
Section
45. 127.06 (title) of the statutes is amended to read:
127.06 (title) Financial statement statements; warehouse keepers and grain dealers.
42,46
Section 46
. 127.06 (1) of the statutes is repealed and recreated to read:
127.06 (1) Warehouse keepers; financial statements required. (a) A warehouse keeper required to be licensed under s. 127.02 (1) shall do all of the following:
1. File a financial statement with the warehouse keeper's initial application for a license.
2. Except as provided in par. (e), file an annual financial statement with the department on or before the 15th day of the 4th month beginning after the close of the warehouse keeper's fiscal year.
(b) A financial statement filed under par. (a) shall be either a reviewed financial statement or an audited financial statement, except that the financial statement shall be an audited financial statement if any of the following apply:
1. The warehouse keeper's warehouses have a combined storage capacity of at least 500,000 bushels.
2. The warehouse keeper is a sole proprietor and the financial statement is not prepared according to the historical cost basis method of accounting.
(c) The department may require an exempt warehouse keeper to file an annual audited financial statement or reviewed financial statement if the department determines that such filing is necessary to protect depositors.
(d) The department may require a warehouse keeper, including an exempt warehouse keeper, to file a supplementary financial statement or an interim statement whenever the department determines that such filing is necessary to protect depositors. The department may require a financial statement filed under this paragraph to be an audited financial statement or a reviewed financial statement.
(e) The department may extend the filing deadline under par. (a) 2. by up to 30 days in response to a written request from a warehouse keeper or an independent certified public accountant, or an independent public accountant holding a certificate of authority under ch. 442, that is auditing or reviewing the financial statement for a warehouse keeper if the department receives the request on or before the 5th day of the 4th month beginning after the close of the warehouse keeper's fiscal year and if the request states the reason for the extension.
42,47
Section 47
. 127.06 (1m) of the statutes is created to read:
127.06 (1m) Grain dealers; financial statements required. (a) The following grain dealers shall file financial statements under par. (b):
1. A Class A grain dealer.
2. A Class B grain dealer that uses any deferred price contract or deferred payment contract.
3. A grain dealer that claims to be bonded or claims to have filed security with the department for the benefit of producers.
(b) A grain dealer specified in par. (a) shall do all of the following:
1. File a financial statement with the grain dealer's initial application for a license under s. 127.03 (2).
2. Except as provided in par. (e), file an annual financial statement with the department on or before the 15th day of the 4th month beginning after the close of the grain dealer's fiscal year.
(c) A financial statement filed under par. (b) shall be either a reviewed financial statement or an audited financial statement, except that the financial statement shall be an audited financial statement if any of the following apply:
1. The grain dealer is a Class A grain dealer that buys or sells at least $2,000,000 worth of grain from producers during the grain dealer's fiscal year.
2. The grain dealer is a sole proprietor and the financial statement is not prepared according to the historical cost basis method of accounting.
(d) The department may require a Class A grain dealer or a Class B grain dealer that uses any deferred price contract or deferred payment contract to file a supplementary financial statement or an interim statement whenever the department determines that such filing is necessary to protect producers. The department may require a financial statement filed under this paragraph to be an audited financial statement or a reviewed financial statement.
(e) The department may extend the filing deadline under par. (b) 2. by up to 30 days in response to a written request from a grain dealer or an independent certified public accountant, or an independent public accountant who holds a certificate of authority under ch. 442, that is auditing or reviewing the financial statement for a grain dealer, if the department receives the written request on or before the 5th day of the 4th month beginning after the close of the grain dealer's fiscal year and if the request states the reason for the extension.
42,48
Section 48
. 127.06 (2) (title) and (a) of the statutes are amended to read:
127.06 (2) (title) Contents; general. (a) Except as provided in par. (b) sub. (3) or (4), a financial statement under sub. (1) or (1m) shall consist of a balance sheet, income statement, equity statement, statement of cash flows, notes to financial statements and other information required by the department, and shall be prepared in conformity with according to generally accepted accounting principles.
(b) Except as provided in par. (b) sub. (4), a warehouse keeper's financial statement shall disclose, separately and clearly, the warehouse keeper's obligations to depositors in the form of negotiable and nonnegotiable warehouse receipts, scale tickets and, collateral warehouse receipts and other grain storage receipts.
(c) Except as provided in par. (b) sub. (4), a grain dealer's financial statement shall disclose, separately and clearly, the grain dealer's obligations to producers in the form of scale tickets, receipts, settlement sheets and contracts for grain purchased from producers. All reviewed financial statements shall be sworn to by the warehouse keeper or grain dealer filing the statement.
42,49
Section 49
. 127.06 (2) (b) of the statutes is renumbered 127.06 (4) and amended to read:
127.06 (4) (title) Initial financial statement. A If a warehouse keeper or a Class A grain dealer that has not previously engaged in those businesses may file an initial financial statement, consisting operated as a warehouse keeper or grain dealer, the financial statement included with that warehouse keeper's or grain dealer's initial license application may consist of an opening balance sheet and notes to that balance sheet, prepared in conformity with according to generally accepted accounting principles.
42,50
Section 50
. 127.06 (3) of the statutes is renumbered 127.06 (7) and amended to read:
127.06 (7) (title) Access to Financial statement closed to public inspection. A Neither a financial statement nor a disclosure of grain purchases under sub. (5) is not subject to open to public inspection under s. 19.35 and the. The department may keep a financial statement closed to the public, although the department may utilize and release introduce a financial statement as evidence in an enforcement action, brought by or on behalf of the department or in an administrative hearing or court proceeding in which the department is a named party, subject to any protective orders made by the court or administrative tribunal.
42,51
Section 51
. 127.06 (3) of the statutes is created to read:
127.06 (3) Financial statement of sole proprietor. If a warehouse keeper or grain dealer is a sole proprietor, the financial statement for that sole proprietor shall consist of a statement of financial condition, statement of changes in net worth, notes to the financial statements and other information required by the department, except that the financial statement for the sole proprietor's grain operations shall comply with sub. (2) (a).
42,52
Section 52
. 127.06 (5) and (6) of the statutes are created to read:
127.06 (5) Grain dealer; disclosure of amount of grain purchased. With every financial statement filed under sub. (1m), a grain dealer shall file a statement, on a form furnished by the department, showing the total dollar value of grain that the grain dealer purchased from producers during the grain dealer's last completed fiscal year and during each month of that fiscal year.
(6) Liability adjustments. (a) For purposes of s. 127.065 (1) (c) or 127.067 (1) (c), a warehouse keeper or grain dealer may deduct, from the amount of a liability reported in the warehouse keeper's or grain dealer's financial statement, any of the liability adjustments allowed for the warehouse keeper or grain dealer under pars. (b) to (f) if the amount of the liability adjustments and of the offsetting assets are disclosed in the notes to the financial statement. The total amount of the liability adjustments under pars. (b) to (f) may not exceed the total amount of the corresponding assets, identified in the notes to the financial statement, that justify the adjustments.
(b) A grain dealer may deduct amounts that the grain dealer has borrowed from a lending institution and deposited with a commodities broker to maintain an account to hedge grain transactions. The amount of the deduction shall be the lesser of the amount deposited with the commodities broker or the amount owed to the lending institution for funds borrowed from the lending institution and deposited with the commodities broker.
(c) A grain dealer may deduct amounts that the grain dealer has borrowed from a lending institution to buy grain that has been shipped and is in transit if the grain dealer has a collectible account receivable for that grain on the date of the balance sheet. The amount of the deduction shall be the lesser of the amount receivable by the grain dealer for the grain that has been shipped and is in transit or the amount that the grain dealer owes to the lending institution for funds used to buy that grain.
(d) A grain dealer may deduct amounts that the grain dealer has borrowed from a lending institution and that are secured by grain owned by the grain dealer and held in the grain dealer's inventory. The amount of the deduction shall be the lesser of the value of the grain pledged as security or the amount owed to the lending institution.
(e) A grain dealer may deduct amounts that the grain dealer has borrowed from a lending institution and used to buy grain that the grain dealer holds in inventory on the date of the balance sheet if the grain dealer has entered into a written contract to sell the grain. The amount of the deduction shall be the lesser of the amount owed to the lending institution or the value of the grain purchased with the borrowed funds and held in inventory to fill the sales contract.
(f) A warehouse keeper or a grain dealer may deduct amounts that the warehouse keeper or grain dealer has borrowed from a lending institution and used to pay for fertilizer, pesticides, herbicides or seed that the warehouse keeper or grain dealer holds in inventory on the date of the balance sheet. The amount of the deduction shall be the lesser of the amount owed to the lending institution or the cost of the fertilizer, pesticides, herbicides or seed purchased with the borrowed funds.
42,53
Section 53
. 127.065 of the statutes is created to read:
127.065 Minimum financial standards; warehouse keepers. (1) Requirement. Except as provided in sub. (2), a warehouse keeper other than an exempt warehouse keeper shall meet all of the following financial standards:
(a) On the date of the warehouse keeper's initial financial statement under s. 127.06 (1) (a) 1. and at the end of each fiscal year, the ratio of the warehouse keeper's current assets to current liabilities shall be at least 1.25 to 1.
(b) At all times other than the times under par. (a), the ratio of the warehouse keeper's current assets to current liabilities shall be at least 1 to 1.
(c) The warehouse keeper's total assets shall at all times exceed total liabilities, adjusted as provided in s. 127.06 (6), by at least $50,000 or the product obtained by multiplying the capacity of the warehouse keeper's warehouses by 10 cents, whichever is greater.
(2) Exemptions. A warehouse keeper is not required to comply with sub. (1) if the warehouse keeper does all of the following:
