Amendment CA1-SSA1-SB55

SB55-SSA1-CA1,593,22 (b) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 and that financial statement shows a debt to equity ratio of greater than 4.0 to 1.0 but less than 5.0 to 1.0, the grain warehouse keeper's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by the following amount:

SB55-SSA1-CA1,593,23 1. Subtract 4 from the debt to equity ratio.

SB55-SSA1-CA1,593,24 2. Divide the amount determined under subd. 1. by 3.

SB55-SSA1-CA1,593,25 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-SSA1-CA1,594,1 4. Subtract 1.7 from the debt to equity ratio.

SB55-SSA1-CA1,594,2 5. Divide the amount determined under subd. 4. by 1.75.

SB55-SSA1-CA1,594,3 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-SSA1-CA1,594,5 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-SSA1-CA1,594,6 8. Add 2 to the amount determined under subd. 7.

SB55-SSA1-CA1,594,11 (c) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 and that financial statement shows negative equity or a debt to equity ratio of at least 5.0 to 1.0, the grain warehouse keeper's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 86.8244.

SB55-SSA1-CA1,594,14 (d) If the grain warehouse keeper has not filed an annual financial statement under s. 126.28, the grain warehouse keeper's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 8.77374.

SB55-SSA1-CA1,594,18 (5) Debt to equity ratio assessment factor. (a) A grain warehouse keeper's debt to equity ratio assessment factor under sub. (4) (a) is 0.0000125, except that it is zero for the grain warehouse keeper's 5th or higher consecutive full license year as a contributing grain warehouse keeper.

SB55-SSA1-CA1,594,22 (b) A grain warehouse keeper's debt to equity ratio assessment factor under sub. (4) (b) to (d) is 0.00001875, except that it is 0.000015 for the grain warehouse keeper's 5th or higher consecutive full license year as a contributing grain warehouse keeper.

SB55-SSA1-CA1,594,25 (6) Quarterly installments. (a) A contributing grain warehouse keeper shall pay the grain warehouse keeper's annual fund assessment in equal quarterly installments that are due as follows:

SB55-SSA1-CA1,595,1 1. The first installment is due on October 1 of the license year.

SB55-SSA1-CA1,595,2 2. The 2nd installment is due on January 1 of the license year.

SB55-SSA1-CA1,595,3 3. The 3rd installment is due on April 1 of the license year.

SB55-SSA1-CA1,595,4 4. The 4th installment is due on July 1 of the license year.

SB55-SSA1-CA1,595,6 (b) A contributing grain warehouse keeper may prepay any of the quarterly installments under par. (a).

SB55-SSA1-CA1,595,11 (c) A contributing grain warehouse keeper who applies for an annual license after the beginning of a license year shall pay the full annual fund assessment required under this section. The grain warehouse keeper shall pay, with the first quarterly installment that becomes due after the day on which the department issues the license, all of the quarterly installments that were due before that day.

SB55-SSA1-CA1,595,15 (d) A contributing grain warehouse keeper who fails to pay the full amount of any quarterly installment when due shall pay, in addition to that installment, a late payment penalty of $50 or 10% of the overdue installment amount, whichever is greater.

SB55-SSA1-CA1,595,18 (7) Notice of annual assessment and quarterly installments. When the department issues an annual license to a contributing grain warehouse keeper, the department shall notify the grain warehouse keeper of all of the following:

SB55-SSA1-CA1,595,20 (a) The amount of the grain warehouse keeper's annual fund assessment under this section.

SB55-SSA1-CA1,595,22 (b) The amount of each required quarterly installment under sub. (6), and the date by which the grain warehouse keeper must pay each installment.

SB55-SSA1-CA1,595,24 (c) The penalty that applies under sub. (6) (d) if the grain warehouse keeper fails to pay any quarterly installment when due.

SB55-SSA1-CA1,596,4 126.31 Grain warehouse keepers; security. (1) Security required. A grain warehouse keeper shall file security with the department, and maintain that security until the department releases it under sub. (8), if all of the following apply when the department first licenses the grain warehouse keeper under s. 126.26 (1):

SB55-SSA1-CA1,596,6 (a) The grain warehouse keeper operates grain warehouses with a combined capacity of more than 300,000 bushels.

SB55-SSA1-CA1,596,8 (b) The grain warehouse keeper's annual financial statement under s. 126.28 (1) (a) shows negative equity.

SB55-SSA1-CA1,596,11 (2) Security continued. A grain warehouse keeper who filed security under ch. 127, 1999 stats., before September 1, 2002, shall maintain that security until the department releases it under sub. (8).

SB55-SSA1-CA1,596,15 (3) Amount of security. A grain warehouse keeper who is required to file or maintain security under this section shall at all times maintain security equal to at least 20% of the current local market value of grain that the grain warehouse keeper holds in this state for others.

SB55-SSA1-CA1,596,18 (4) Form of security. The department shall review, and determine whether to approve, security filed or maintained under this section. The department may approve only the following types of security:

SB55-SSA1-CA1,596,19 (a) Currency.

SB55-SSA1-CA1,596,20 (b) A commercial surety bond if all of the following apply:

SB55-SSA1-CA1,596,22 1. The surety bond is made payable to the department for the benefit of depositors.

SB55-SSA1-CA1,596,24 2. The surety bond is issued by a person authorized to operate a surety business in this state.

SB55-SSA1-CA1,597,3 3. The surety bond is issued as a continuous term bond that may be canceled only with the department's written agreement, or upon 90 days' prior written notice served on the department in person or by certified mail.

SB55-SSA1-CA1,597,5 4. The surety bond is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-SSA1-CA1,597,7 (c) A certificate of deposit or money market certificate, if all of the following apply:

SB55-SSA1-CA1,597,9 1. The certificate is issued or endorsed to the department for the benefit of depositors.

SB55-SSA1-CA1,597,11 2. The certificate may not be canceled or redeemed without the department's written permission.

SB55-SSA1-CA1,597,13 3. No person may transfer or withdraw funds represented by the certificate without the department's written permission.

SB55-SSA1-CA1,597,14 4. The certificate renews automatically without any action by the department.

SB55-SSA1-CA1,597,16 5. The certificate is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-SSA1-CA1,597,17 (d) An irrevocable bank letter of credit if all of the following apply:

SB55-SSA1-CA1,597,18 1. The letter of credit is payable to the department for the benefit of depositors.

SB55-SSA1-CA1,597,19 2. The letter of credit is issued on bank letterhead.

SB55-SSA1-CA1,597,20 3. The letter of credit is issued for an initial period of at least one year.

SB55-SSA1-CA1,597,23 4. The letter of credit renews automatically unless at least 90 days before the scheduled renewal date the issuing bank gives the department written notice, in person or by certified mail, that the letter of credit will not be renewed.

SB55-SSA1-CA1,597,25 5. The letter of credit is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-SSA1-CA1,598,3 (e) Security filed under ch. 127, 1999 stats., before September 1, 2002, except that on January 1, 2003, the department shall withdraw its approval of any security that is not approvable under pars. (a) to (d).

SB55-SSA1-CA1,598,6 (5) Department custody of security. The department shall hold, in its custody, all security filed and maintained under this section. The department shall hold the security for the benefit of depositors.

SB55-SSA1-CA1,598,9 (6) Additional security. (a) The department may, at any time during a license year, demand additional security from a grain warehouse keeper if any of the following applies:

SB55-SSA1-CA1,598,13 1. The grain warehouse keeper's existing security falls below the amount required under sub. (3) for any reason, including depreciation in the value of the security, increased obligations to depositors, or the cancellation of any security filed with the department.

SB55-SSA1-CA1,598,15 2. The grain warehouse keeper fails to provide required information that is relevant to a determination of security requirements.

SB55-SSA1-CA1,598,20 (b) The department shall issue a demand under par. (a) in writing. The department shall indicate why additional security is required, the amount of security required, and the deadline date for filing security. The department may not specify a deadline for filing security that is more than 30 days after the date on which the department issues its demand for security.

SB55-SSA1-CA1,598,23 (c) A grain warehouse keeper may request a hearing, under ch. 227, on a demand for security under par. (b). A request for hearing does not automatically stay a security demand.

SB55-SSA1-CA1,599,5 (d) If a grain warehouse keeper fails to comply with the department's demand for security under this subsection, the grain warehouse keeper shall give written notice of that fact to all depositors. If the grain warehouse keeper fails to give accurate notice under this paragraph within 5 days after the deadline for filing security under par. (b) has passed, the department shall promptly notify depositors by publishing a class 3 notice under ch. 985. The department may also give individual notice to depositors of whom the department is aware.

SB55-SSA1-CA1,599,7 (e) If a grain warehouse keeper fails to comply with the department's demand for security under this subsection, the department may do any of the following:

SB55-SSA1-CA1,599,8 1. Issue an appropriate summary order under s. 126.85 (2).

SB55-SSA1-CA1,599,9 2. Suspend or revoke the grain warehouse keeper's license.

SB55-SSA1-CA1,599,16 (7) Monthly reports. A grain warehouse keeper who is required to file or maintain security under this section shall file monthly reports with the department. The grain warehouse keeper shall file the report by the 10th day of each month, in a form specified by the department. In a monthly report, the grain warehouse keeper shall provide information reasonably required by the department, including the amount of each type of grain stored in each grain warehouse on the last day of the preceding month.

SB55-SSA1-CA1,599,18 (8) Releasing security. (a) The department may release security filed under sub. (1) if any of the following applies:

SB55-SSA1-CA1,599,24 1. The grain warehouse keeper reports grain warehouse capacity under s. 126.26 (2) (e) of less than 300,000 bushels for at least 2 consecutive license years and the grain warehouse keeper pays the quarterly fund assessment that would have been required of the grain warehouse keeper if the grain warehouse keeper had been a contributing grain warehouse keeper on the most recent quarterly installment date under s. 126.30 (6).

SB55-SSA1-CA1,600,5 2. The grain warehouse keeper's annual financial statement under s. 126.28 shows positive equity for at least 2 consecutive years and the grain warehouse keeper pays the quarterly fund assessment that would have been required of the grain warehouse keeper if the grain warehouse keeper had been a contributing grain warehouse keeper on the most recent quarterly installment date under s. 126.30 (6).

SB55-SSA1-CA1,600,8 (b) On December 1, 2002, the department may release security maintained under sub. (2), unless the grain warehouse keeper is required to file security under sub. (1).

SB55-SSA1-CA1,600,10 (c) The department may release security to the extent that the security exceeds the amount required under sub. (3).

SB55-SSA1-CA1,600,12 (d) The department may release security if the grain warehouse keeper files alternative security, of equivalent value, that the department approves.

SB55-SSA1-CA1,600,14 (e) The department shall release security if the grain warehouse keeper has gone out of business and has fulfilled all grain obligations to depositors.

SB55-SSA1-CA1,600,18 126.32 Grain warehouse keepers; records. (1) Records and accounts; general. A grain warehouse keeper shall maintain current, complete, and accurate records and accounts of all grain received into and withdrawn from each grain warehouse, including records required under subs. (2) and (3).

SB55-SSA1-CA1,600,21 (2) Daily position records. A grain warehouse keeper shall keep daily position records for each type of grain, so that the grain warehouse keeper and the department can easily determine all of the following on a daily basis:

SB55-SSA1-CA1,600,23 (a) The total amount of grain held by the warehouse keeper, including grain under pars. (b) and (c).

SB55-SSA1-CA1,600,24 (b) The total amount of grain that the warehouse keeper holds for others.

SB55-SSA1-CA1,601,2 (c) The total amount of grain held by the warehouse keeper of which the warehouse keeper claims ownership.

SB55-SSA1-CA1,601,3 (d) The warehouse keeper's total grain obligations to depositors.

SB55-SSA1-CA1,601,6 (3) Depositor records. A grain warehouse keeper shall keep for each depositor, in a form that the grain warehouse keeper and the department can easily retrieve, records of all of the following:

SB55-SSA1-CA1,601,7 (a) The depositor's name and address.

SB55-SSA1-CA1,601,10 (b) The kinds and amounts of grain that the grain warehouse keeper received from the depositor, the receipt dates, and the terms under which the grain warehouse keeper received the grain.

SB55-SSA1-CA1,601,12 (c) The kinds and amounts of grain that the grain warehouse keeper has released to the depositor and the release dates.

SB55-SSA1-CA1,601,14 (d) The kinds and amounts of grain that the grain warehouse keeper holds for the depositor. The grain warehouse keeper shall update this record on a daily basis.

SB55-SSA1-CA1,601,18 (4) Adjusting records. (a) Whenever a grain warehouse keeper alters a record entry under sub. (2) or (3), the grain warehouse keeper shall clearly identify and explain the alteration so that the reason for the alteration is clear to a person reviewing the records.

SB55-SSA1-CA1,601,20 (b) Except as provided in par. (c), a grain warehouse keeper may not alter a record entry under sub. (2) or (3) without the department's prior approval.

SB55-SSA1-CA1,601,22 (c) A grain warehouse keeper may, without the department's prior approval, correct a record entry under sub. (2) or (3) for any of the following reasons:

SB55-SSA1-CA1,601,24 1. To account for handling losses, if the warehouse keeper corrects for handling losses at least monthly.

SB55-SSA1-CA1,602,2 2. To account for errors or omissions related to the receipt or withdrawal of grain, if the warehouse keeper has documentation to support the correction.

SB55-SSA1-CA1,602,4 (5) Records retention; availability. (a) A grain warehouse keeper shall retain all of the following records for at least 6 years from the date of their creation:

SB55-SSA1-CA1,602,5 1. Records required under this section and s. 126.33 (3).

SB55-SSA1-CA1,602,7 2. Records that the grain warehouse keeper was required to keep under ch. 127, 1999 stats., and department rules, before January 1, 2002.

SB55-SSA1-CA1,602,11 (b) If a grain warehouse keeper keeps records under subs. (2) and (3) in computerized form, the grain warehouse keeper shall generate a hard copy printout for each business day unless the grain warehouse keeper retains the ability to retrieve and print that day's computerized record for at least 6 years.

SB55-SSA1-CA1,602,13 (c) A grain warehouse keeper shall make records required under this section available to the department for inspection and copying upon request.