SB55-ASA1-AA1,853,10 9(2) Grain dealer's copies. A grain dealer shall keep copies of all receipts issued
10under sub. (1).
SB55-ASA1-AA1,853,15 11126.19 Grain dealers; deferred payment contracts. (1) Contract in
12writing.
A grain dealer may not procure grain from any grain producer or producer
13agent under a deferred payment contract before the contract is reduced to writing
14and signed by the parties. The grain dealer shall provide a copy of the signed contract
15to the other party.
SB55-ASA1-AA1,853,17 16(2) Contents of contract. A grain dealer may not enter into a deferred
17payment contract unless the deferred payment contract includes all of the following:
SB55-ASA1-AA1,853,1818 (a) A unique contract identification number.
SB55-ASA1-AA1,853,2119 (b) The type, weight, grade, and quality of grain procured and a statement that
20price adjustments may apply if delivered grain varies in grade or quality from that
21identified in the contract.
SB55-ASA1-AA1,853,2322 (c) The price for the grain or, in a deferred price contract, the method and
23deadline by which the price will be determined.
SB55-ASA1-AA1,854,224 (d) The date by which the grain dealer agrees to make full payment for the
25grain, which may not be more than 180 days after the date on which the contract price

1is established or more than 180 days after the date on which the grain dealer takes
2custody or control of the grain, whichever is later.
SB55-ASA1-AA1,854,53 (dm) If the contract is a deferred price contract, a pricing deadline that is not
4more than one year after the date on which the grain dealer takes custody or control
5of the grain.
SB55-ASA1-AA1,854,66 (e) The grain dealer's permanent business location.
SB55-ASA1-AA1,854,77 (f) Other information required under this section.
SB55-ASA1-AA1,854,9 8(3) Payment and pricing deadlines. (a) A grain dealer shall make full payment
9under a deferred payment contract by the deadline date specified in the contract.
SB55-ASA1-AA1,854,1310 (b) The parties may not extend a payment or pricing deadline under sub. (2)
11(d) or (dm), except that they may sign a new contract that extends either deadline
12or both deadlines for up to 180 days if the new contract refers to the contract number
13of the original contract.
SB55-ASA1-AA1,854,22 14(4) Required notice. A grain dealer may not enter into a deferred payment
15contract unless the deferred payment contract clearly discloses that it is not a storage
16contract. Whenever a grain dealer buys grain from a grain producer under a deferred
17payment contract, the grain dealer shall include the following statement in
18capitalized, boldface print immediately above the contract signature line: "This is
19not a storage contract. The grain dealer (buyer) becomes the owner of any grain that
20the producer (seller) delivers to the grain dealer under this contract. The producer
21relinquishes ownership and control of the grain, and becomes an unsecured creditor
22pending payment."
SB55-ASA1-AA1,855,6 23(5) Deferred payment contract assessment. From the amount that a grain
24dealer pays to a grain producer or producer agent under a deferred payment contract,
25the grain dealer shall deduct a deferred payment contract assessment. The

1assessment shall equal the total amount owed under the contract before the
2assessment is deducted, multiplied by the deferred payment assessment rate that
3applies under s. 126.15 (6) when the contract is made. The grain dealer shall disclose
4the assessment amount or, if the contract is a deferred price contract, the method by
5which the assessment amount will be determined, in the written contract under sub.
6(1).
SB55-ASA1-AA1,855,9 7126.20 Grain dealers; business practices. (1) Grain weight, grade, and
8quality.
A grain dealer shall do all of the following when determining the weight,
9grade, or quality of grain:
SB55-ASA1-AA1,855,1110 (a) Accurately determine the weight, grade, or quality using accurate weighing,
11testing, or grading equipment.
SB55-ASA1-AA1,855,1212 (b) Accurately record the determined weight, grade, or quality.
SB55-ASA1-AA1,855,15 13(2) Timely payment to producers. A grain dealer shall pay for grain when
14payment is due. A grain dealer may not make payment by nonnegotiable check or
15note or by check drawn on an account containing insufficient funds.
SB55-ASA1-AA1,855,17 16(3) Permanent business location. A grain dealer licensed under s. 126.11 shall
17do all of the following:
SB55-ASA1-AA1,855,1918 (a) Maintain a permanent business address at which grain producers may
19readily contact the grain dealer during business hours.
SB55-ASA1-AA1,855,2120 (b) On each day that the Chicago Board of Trade is open for trading, keep
21business hours that start no later than 9 a.m. and end no earlier than 2:30 p.m.
SB55-ASA1-AA1,855,2322 (c) Prominently post the grain dealer's business hours at each of the grain
23dealer's business locations in this state.
SB55-ASA1-AA1,855,24 24(4) Prohibited practices. No grain dealer may do any of the following:
SB55-ASA1-AA1,856,2
1(a) Misrepresent the weight, grade, or quality of grain received from or
2delivered to any person.
SB55-ASA1-AA1,856,43 (b) Falsify any record or account, or conspire with any other person to falsify
4a record or account.
SB55-ASA1-AA1,856,55 (c) Make any false or misleading representation to the department.
SB55-ASA1-AA1,856,86 (d) If the grain dealer is licensed under s. 126.11, engage in any activity that
7is inconsistent with a representation made in the grain dealer's annual license
8application.
SB55-ASA1-AA1,856,109 (e) Make any false or misleading representation to a grain producer or producer
10agent related to any matters regulated under this chapter.
SB55-ASA1-AA1,856,1211 (f) Fail to file the full amount of security required under s. 126.16 (7) by the date
12that the department specifies.
SB55-ASA1-AA1,856,16 13126.21 Grain producer obligations. (1) Delivery per contract. No grain
14producer or producer agent who contracts to sell and deliver grain to a grain dealer
15at an agreed price may wrongfully refuse to deliver that grain according to the
16contract.
SB55-ASA1-AA1,856,24 17(2) Disclosure of liens and security interests. A grain dealer procuring grain
18from a grain producer or producer agent may require the grain producer or producer
19agent to disclose any liens or security interests that apply to the grain. The grain
20dealer may require the disclosure in writing. The grain dealer may require the grain
21producer or producer agent to specify the nature and amount of each lien or security
22interest and the identity of the person holding that lien or security interest. No grain
23producer may falsify or fraudulently withhold information required under this
24subsection in order to sell grain.
SB55-ASA1-AA1,857,2
1subchapter IV
2GRAIN WAREHOUSE KEEPERS
SB55-ASA1-AA1,857,3 3126.25 Definitions. In this subchapter:
SB55-ASA1-AA1,857,8 4(1) "Capacity" means the maximum amount of grain, measured in bushels,
5that can be stored in a grain warehouse. The capacity of a grain warehouse is
6determined by dividing the cubic volume of all bins, expressed in cubic feet, by 1.244
7cubic feet per bushel, and applying a pack factor that the department specifies by
8rule.
SB55-ASA1-AA1,857,13 9(2) "Contributing grain warehouse keeper" means a grain warehouse keeper
10who is licensed under s. 126.26, who either has paid one or more quarterly
11installments under s. 126.30 (6) or is required to contribute to the fund, but the first
12quarterly installment under s. 126.30 (6) is not yet due, and who is not disqualified
13under s. 126.29 (2).
SB55-ASA1-AA1,857,15 14(3) "Current ratio" means the ratio of the value of current assets to the value
15of current liabilities, calculated according to s. 126.28 (6) (c) 1.
SB55-ASA1-AA1,857,17 16(4) "Debt to equity ratio" means the ratio of the value of liabilities to equity,
17calculated according to s. 126.28 (6) (c) 2.
SB55-ASA1-AA1,857,18 18(5) "Depositor" means any of the following:
SB55-ASA1-AA1,857,2119 (a) A person who delivers grain to a grain warehouse keeper for storage,
20conditioning, shipping, or handling, without transferring ownership to the
21warehouse keeper.
SB55-ASA1-AA1,857,2422 (b) A person who owns or legally holds a warehouse receipt or other document
23that is issued by a grain warehouse keeper and that entitles the person to receive
24stored grain.
SB55-ASA1-AA1,858,2
1(6) "Disqualified grain warehouse keeper" means a grain warehouse keeper
2who is disqualified from the fund under s. 126.29 (2).
SB55-ASA1-AA1,858,5 3(8) "Grain warehouse" means a facility in this state that is used to receive,
4store, or condition grain for others or that is used in the shipment of grain for others,
5except that "grain warehouse" does not include a transport vehicle.
SB55-ASA1-AA1,858,9 6(9) "Grain warehouse keeper" means a person who operates one or more grain
7warehouses in this state to receive, store, condition, or ship grain for others, except
8that "grain warehouse keeper" does not include a person licensed under the United
9States Warehouse Act, 7 USC 241 to 271.
SB55-ASA1-AA1,858,11 10(9m) "License year" means the period beginning on September 1 and ending
11on the following August 31.
SB55-ASA1-AA1,858,13 12(11) "Warehouse receipt" means a receipt for grain, issued by a grain
13warehouse keeper, that is also a document of title under s. 401.201 (15).
SB55-ASA1-AA1,858,20 14126.26 Grain warehouse keepers; licensing. (1) License required. (a)
15No grain warehouse keeper may hold at any time more than 50,000 bushels of grain
16for others without a current annual license from the department. A grain warehouse
17keeper who has grain warehouses with a combined capacity of more than 50,000
18bushels shall obtain a license unless the grain warehouse keeper proves to the
19department that the grain warehouse keeper holds no more than 50,000 bushels of
20grain for others at any time.
SB55-ASA1-AA1,858,2221 (b) A license under par. (a) expires on the August 31 following its issuance. No
22person may transfer or assign a license issued under par. (a).
SB55-ASA1-AA1,858,25 23(2) License application. A person shall apply for a grain warehouse keeper
24license in writing, on a form provided by the department. The applicant shall provide
25all of the following:
SB55-ASA1-AA1,859,2
1(a) The applicant's legal name and any trade name under which the applicant
2proposes to operate as a grain warehouse keeper.
SB55-ASA1-AA1,859,73 (b) A statement of whether the applicant is an individual, corporation,
4partnership, cooperative, limited liability company, trust, or other legal entity. If the
5applicant is a corporation or cooperative, the applicant shall identify each officer of
6the corporation or cooperative. If the applicant is a partnership, the applicant shall
7identify each partner.
SB55-ASA1-AA1,859,98 (c) The mailing address of the applicant's primary business location and the
9name of a responsible individual who may be contacted at that location.
SB55-ASA1-AA1,859,1210 (d) The street address and capacity of every grain warehouse that the applicant
11operates or proposes to operate in this state and the name of a responsible individual
12who may be contacted at each warehouse.
SB55-ASA1-AA1,859,1313 (e) The combined capacity of all grain warehouses identified under par. (d).
SB55-ASA1-AA1,859,1414 (f) All license fees and surcharges required under sub. (3).
SB55-ASA1-AA1,859,1815 (g) Proof that the applicant is insured as required under s. 126.27, unless the
16applicant has previously filed proof that remains current. The proof may consist of
17a certification provided by an insurance company licensed to do business in this
18state.
SB55-ASA1-AA1,859,1919 (h) A financial statement if required under s. 126.28 (1) and not yet filed.
SB55-ASA1-AA1,859,2020 (i) Other relevant information required by the department.
SB55-ASA1-AA1,859,23 21(3) License fees and surcharges. A person applying for a grain warehouse
22keeper license shall pay the following fees and surcharges, unless the department
23specifies a different fee or surcharge amount by rule:
SB55-ASA1-AA1,860,324 (a) A nonrefundable license processing fee of $25 plus $25 for each grain
25warehouse identified under sub. (2) (d). If a grain warehouse keeper operates 2 or

1more grain warehouses located within 0.5 mile of each other, the grain warehouse
2keeper may treat those grain warehouses as a single grain warehouse for purposes
3of this paragraph and par. (c).
SB55-ASA1-AA1,860,44 (b) The following inspection fee, less any credit provided under sub. (5):
SB55-ASA1-AA1,860,65 1. A fee of $500 if the combined capacity of the applicant's grain warehouses
6is less than 150,000 bushels.
SB55-ASA1-AA1,860,87 2. A fee of $550 if the combined capacity of the applicant's grain warehouses
8is at least 150,000 bushels but less than 250,000 bushels.
SB55-ASA1-AA1,860,109 3. A fee of $600 if the combined capacity of the applicant's grain warehouses
10is at least 250,000 bushels but less than 500,000 bushels.
SB55-ASA1-AA1,860,1211 4. A fee of $650 if the combined capacity of the applicant's grain warehouses
12is at least 500,000 bushels but less than 750,000 bushels.
SB55-ASA1-AA1,860,1413 5. A fee of $700 if the combined capacity of the applicant's grain warehouses
14is at least 750,000 bushels but less than 1,000,000 bushels.
SB55-ASA1-AA1,860,1615 6. A fee of $800 if the combined capacity of the applicant's grain warehouses
16is at least 1,000,000 bushels but less than 2,000,000 bushels.
SB55-ASA1-AA1,860,1817 7. A fee of $900 if the combined capacity of the applicant's grain warehouses
18is at least 2,000,000 bushels but less than 3,000,000 bushels.
SB55-ASA1-AA1,860,2019 8. A fee of $1,000 if the combined capacity of the applicant's grain warehouses
20is at least 3,000,000 bushels but less than 4,000,000 bushels.
SB55-ASA1-AA1,860,2221 9. A fee of $1,100 if the combined capacity of the applicant's grain warehouses
22is 4,000,000 bushels or more.
SB55-ASA1-AA1,860,2423 (c) A supplementary inspection fee of $275 for each grain warehouse that the
24applicant operates in excess of one grain warehouse.
SB55-ASA1-AA1,861,5
1(d) A license surcharge of $500 if the department determines that, within 365
2days before submitting the license application, the applicant operated as a grain
3warehouse keeper without a license in violation of sub. (1). The applicant shall also
4pay any license fees, license surcharges, and fund assessments that are still due for
5the license year in which the applicant violated sub. (1).
SB55-ASA1-AA1,861,86 (e) A license surcharge of $100 if during the preceding 12 months the applicant
7failed to file an annual financial statement required under s. 126.28 (1) (b) by the
8applicable deadline.
SB55-ASA1-AA1,861,109 (f) A license surcharge of $100 if a renewal applicant fails to renew a license
10by the license expiration date of August 31.
SB55-ASA1-AA1,861,13 11(3m) Effect of payment of surcharge. Payment under sub. (3) (d) does not
12relieve the applicant of any other civil or criminal liability that results from the
13violation of sub. (1), but does not constitute evidence of any law violation.
SB55-ASA1-AA1,861,16 14(4) License for part of year; fees. A person who applies for an annual grain
15warehouse keeper license after the beginning of a license year shall pay the full
16annual fee amounts required under sub. (3).
SB55-ASA1-AA1,861,23 17(5) Fee credit. If the fund balance contributed by grain warehouse keepers
18exceeds $300,000 on June 30 of any license year, the department shall credit 12.5%
19of the excess amount against fees charged under sub. (3) (b) to contributing grain
20warehouse keepers who file timely license renewal applications for the next license
21year. The department shall credit each contributing grain warehouse keeper on a
22prorated basis, in proportion to the total fees that the warehouse keeper has paid
23under sub. (3) (b) for the 4 preceding license years.
SB55-ASA1-AA1,862,2 24(6) Fee statement. The department shall provide, with each license application
25form, a written statement of all license fees and surcharges required under sub. (3)

1or the formula for determining them. The department shall specify any fee credit for
2which the applicant may qualify under sub. (5).
SB55-ASA1-AA1,862,7 3(7) No license without full payment. The department may not grant a license
4under sub. (1) until the applicant pays all license fees and surcharges identified in
5the department's statement under sub. (6). The department shall refund a fee or
6surcharge paid under protest if upon review the department determines that the fee
7or surcharge is not applicable.
SB55-ASA1-AA1,862,12 8(8) Action granting or denying application. The department shall grant or
9deny a license application under sub. (2) within 30 days after the department
10receives a complete application. If the department denies a license application, the
11department shall give the applicant a written notice stating the reasons for the
12denial.
SB55-ASA1-AA1,862,15 13(9) License displayed. A grain warehouse keeper who is required to hold a
14license under sub. (1) shall prominently display a copy of that license at each grain
15warehouse.
SB55-ASA1-AA1,862,21 16(10) Notification. A licensed warehouse keeper shall notify the department,
17in writing, before the warehouse keeper adds a grain warehouse or changes the
18location or capacity of any grain warehouse. In the notice, the grain warehouse
19keeper shall specify any change in the combined capacity of grain warehouses
20operated by the grain warehouse keeper resulting from the proposed addition or
21change.
SB55-ASA1-AA1,863,2 22126.27 Grain warehouse keepers; insurance. (1) F ire and extended
23coverage insurance.
A grain warehouse keeper licensed under s. 126.26 (1) shall
24maintain fire and extended coverage insurance, issued by an insurance company
25authorized to do business in this state, that covers all grain in the custody of the grain

1warehouse keeper, whether owned by the grain warehouse keeper or held for others,
2at the full local market value of the grain.
SB55-ASA1-AA1,863,6 3(2) Insurance cancellation; replacement. (a) No person may cancel an
4insurance policy required under sub. (1) unless that person serves a written notice
5of the intended cancellation on the department at least 30 days before the
6cancellation takes effect.
SB55-ASA1-AA1,863,137 (b) Whenever an insurance policy under sub. (1) is canceled, the grain
8warehouse keeper shall replace the policy so that there is no lapse in coverage.
9Within 20 days after a cancellation notice under par. (a) is served on the department,
10and at least 10 days before the cancellation takes effect, the grain warehouse keeper
11shall provide the department with proof of the replacement policy. The department
12may accept, as proof, a certification provided by an insurance company licensed to
13do business in this state.
SB55-ASA1-AA1,863,20 14(3) Insurance deductibles. An insurance policy does not comply with sub. (1)
15if it contains any deductible clause that limits the insurer's obligation to pay to each
16depositor the full value of the depositor's covered losses under the policy. The grain
17warehouse keeper may agree to indemnify the insurer for a portion of each depositor
18claim that the insurer pays under the policy if the agreement does not limit the
19insurer's obligation to pay each depositor the full amount of the depositor's covered
20losses.
SB55-ASA1-AA1,863,23 21(4) Insurance disclosures. A grain warehouse keeper licensed under s. 126.26
22(1) shall disclose all of the following to a depositor if the depositor requests that
23information:
SB55-ASA1-AA1,863,2524 (a) The material terms of the grain warehouse keeper's fire and extended
25coverage insurance policy under sub. (1).
SB55-ASA1-AA1,864,3
1(b) Whether the grain warehouse keeper has liability insurance covering the
2grain warehouse keeper's grain operations, and the material terms of that liability
3insurance policy.
SB55-ASA1-AA1,864,5 4(5) Insurance coverage; misrepresentation. No grain warehouse keeper may
5misrepresent any of the following to the department or a depositor:
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