Amendment AA1-ASA1-SB55

SB55-ASA1-AA1,828,19 (13) "Producer agent" means a person who acts on behalf of a grain producer to market or accept payment for the grain producer's grain without taking title to that grain, including a person who uses a producer trust fund to market or accept payment for producer grain. "Producer agent" does not include any of the following:

SB55-ASA1-AA1,828,22 (a) A person who merely brokers a contract between a grain producer and a grain dealer, without becoming a party to the contract, taking control of grain, or accepting payment on behalf of the grain producer.

SB55-ASA1-AA1,828,24 (b) A person who merely holds or transports grain for a grain producer without marketing the grain or accepting payment on behalf of the grain producer.

SB55-ASA1-AA1,829,3 (14) "Producer grain" means grain that is owned by or held in trust for one or more grain producers. "Producer grain" includes grain that a producer agent markets for a grain producer, without taking title to the grain.

SB55-ASA1-AA1,829,6 126.11 Grain dealers; licensing. (1) License required. Except as provided in sub. (2), no grain dealer may procure producer grain in this state without a current annual license from the department.

SB55-ASA1-AA1,829,8 (2) Exempt grain dealers. The following grain dealers are not required to hold a license under this section, but may volunteer to be licensed:

SB55-ASA1-AA1,829,9 (a) A grain dealer who pays cash on delivery for all producer grain.

SB55-ASA1-AA1,829,11 (b) A grain dealer who buys producer grain solely for the grain dealer's own use as feed or seed and who spends less than $400,000 per license year for that grain.

SB55-ASA1-AA1,829,14 (2m) License terms. A license under this section expires on the August 31 following its issuance. No person may transfer or assign a license issued under this section.

SB55-ASA1-AA1,829,17 (3) License application. A grain dealer shall apply for an annual license under this section in writing, on a form provided by the department. An applicant shall provide all of the following:

SB55-ASA1-AA1,829,19 (a) The applicant's legal name and any trade name under which the applicant proposes to operate as a grain dealer.

SB55-ASA1-AA1,829,24 (b) A statement of whether the applicant is an individual, corporation, partnership, cooperative, limited liability company, trust, or other legal entity. If the applicant is a corporation or cooperative, the applicant shall identify each officer of the corporation or cooperative. If the applicant is a partnership, the applicant shall identify each partner.

SB55-ASA1-AA1,830,2 (c) The mailing address of the applicant's primary business location and the name of a responsible individual who may be contacted at that location.

SB55-ASA1-AA1,830,5 (d) The street address of each business location from which the applicant operates in this state as a grain dealer and the name of a responsible individual who may be contacted at each location that is staffed.

SB55-ASA1-AA1,830,6 (e) All license fees and surcharges required under sub. (4).

SB55-ASA1-AA1,830,7 (f) The sworn and notarized statement required under sub. (9).

SB55-ASA1-AA1,830,8 (g) A financial statement if required under s. 126.13 (1) and not yet filed.

SB55-ASA1-AA1,830,9 (h) Other relevant information required by the department.

SB55-ASA1-AA1,830,12 (4) License fees and surcharges. A grain dealer applying for an annual license under this section shall pay the following fees and surcharges, unless the department specifies a different fee or surcharge amount by rule:

SB55-ASA1-AA1,830,13 (a) A nonrefundable license processing fee of $25.

SB55-ASA1-AA1,830,15 (b) The following license fees based on the grain dealer's reported grain payments under sub. (9) (a), less any credit provided under sub. (6):

SB55-ASA1-AA1,830,17 1. A fee of $500, plus $225 per business location in excess of one business location, if the amount under sub. (9) (a) is at least $500,000.

SB55-ASA1-AA1,830,19 2. A fee of $200 if the amount under sub. (9) (a) is at least $50,000 but less than $500,000.

SB55-ASA1-AA1,830,20 3. A fee of $50 if the amount under sub. (9) (a) is less than $50,000.

SB55-ASA1-AA1,830,22 (c) A license fee of $45 for each truck, in excess of one truck, that the grain dealer uses to haul grain in this state.

SB55-ASA1-AA1,830,24 (d) A license surcharge of $425 if the grain dealer files a financial statement under s. 126.13 (1) that is not an audited financial statement.

SB55-ASA1-AA1,831,5 (e) A license surcharge of $500 if the department determines that, within 365 days before submitting the license application, the applicant operated as a grain dealer without a license in violation of sub. (1). The applicant shall also pay any license fees, license surcharges, and fund assessments that are still due for any license year in which the applicant violated sub. (1).

SB55-ASA1-AA1,831,8 (f) A license surcharge of $100 if during the preceding 12 months the applicant failed to file an annual financial statement required under s. 126.13 (1) (b) by the deadline specified in s. 126.13 (1) (c).

SB55-ASA1-AA1,831,11 (g) A license surcharge of $100 if a renewal applicant fails to renew a license by the license expiration date of August 31. This paragraph does not apply to a grain dealer who is exempt under sub. (2) and is voluntarily licensed.

SB55-ASA1-AA1,831,14 (4m) Effect of payment of surcharge. Payment under sub. (4) (e) does not relieve the applicant of any other civil or criminal liability that results from the violation of sub. (1), but does not constitute evidence of any law violation.

SB55-ASA1-AA1,831,17 (5) License for part of year; fees. A person who applies for an annual grain dealer license after the beginning of a license year shall pay the full annual fee amounts required under sub. (4).

SB55-ASA1-AA1,831,24 (6) Fee credits. If the balance in the fund contributed by grain dealers exceeds $2,000,000 on June 30 of any license year, the department shall credit 50% of the excess amount against fees charged under sub. (4) (b) to contributing grain dealers who file timely license renewal applications for the next license year. The department shall credit each contributing grain dealer on a prorated basis, in proportion to the total fees that the grain dealer paid under sub. (4) (b) for the 4 preceding license years.

SB55-ASA1-AA1,832,4 (7) Fee statement. The department shall provide, with each license application form, a written statement of all license fees and surcharges required under sub. (4) or the formula for determining them. The department shall specify any fee credit for which the applicant may qualify under sub. (6).

SB55-ASA1-AA1,832,9 (8) No license without full payment. The department may not issue an annual license under sub. (1) until the applicant pays all license fees and surcharges identified in the department's statement under sub. (7). The department shall refund a fee or surcharge paid under protest if upon review the department determines that the fee or surcharge is not applicable.

SB55-ASA1-AA1,832,12 (9) Sworn and notarized statement. As part of a license application under sub. (3), an applicant shall provide a sworn and notarized statement, signed by the applicant or an officer of the applicant, that reports all of the following:

SB55-ASA1-AA1,832,17 (a) The total amount that the applicant paid, during the applicant's last completed fiscal year, for producer grain procured in this state. If the applicant has not yet operated as a grain dealer in this state, the applicant shall estimate the amount that the applicant will pay during the applicant's first complete fiscal year for producer grain procured in this state.

SB55-ASA1-AA1,832,19 (b) The amount of the payments under par. (a) made under deferred payment contracts.

SB55-ASA1-AA1,832,22 (c) Whether the applicant has had any obligations under deferred payment contracts, for grain procured in this state, at any time since the beginning of the applicant's last completed fiscal year.

SB55-ASA1-AA1,833,2 (10) Action granting or denying application. The department shall grant or deny an application under sub. (3) within 30 days after the department receives a complete application. If the department denies a license application, the department shall give the applicant a written notice stating the reason for the denial.

SB55-ASA1-AA1,833,4 (11) License displayed. A grain dealer licensed under sub. (1) shall prominently display a copy of that license at the following locations:

SB55-ASA1-AA1,833,5 (a) On each truck that the grain dealer uses to haul grain in this state.

SB55-ASA1-AA1,833,6 (b) At each business location from which the grain dealer operates in this state.

SB55-ASA1-AA1,833,12 126.12 Grain dealers; insurance. (1) Fire and extended coverage insurance. A grain dealer licensed, or required to be licensed, under s. 126.11 shall maintain fire and extended coverage insurance, issued by an insurance company authorized to do business in this state, that covers all grain in the custody of the grain dealer, whether owned by the grain dealer or held for others, at the full local market value of the grain.

SB55-ASA1-AA1,833,15 (2) Insurance cancellation; replacement. Whenever an insurance policy under sub. (1) is canceled, the grain dealer shall replace the policy so that there is no lapse in coverage.

SB55-ASA1-AA1,833,18 (3) Insurance coverage; misrepresentation. No grain dealer may misrepresent any of the following to the department or to any grain producer or producer agent:

SB55-ASA1-AA1,833,19 (a) That the grain dealer is insured.

SB55-ASA1-AA1,833,21 (b) The nature, coverage, or material terms of the grain dealer's insurance policy.

SB55-ASA1-AA1,833,25 126.13 Grain dealers; financial statements. (1) Required annual financial statement. (a) A grain dealer shall file an annual financial statement with the department, before the department first licenses the grain dealer under s. 126.11, if the grain dealer's license application reports any of the following:

SB55-ASA1-AA1,834,1 1. More than $500,000 in grain payments under s. 126.11 (9) (a).

SB55-ASA1-AA1,834,2 2. Any deferred payment contract obligations under s. 126.11 (9) (c).

SB55-ASA1-AA1,834,5 (b) A grain dealer licensed under s. 126.11 shall file an annual financial statement with the department during each license year if the grain dealer's license application for that year reports any of the following:

SB55-ASA1-AA1,834,8 1. More than $500,000 in grain payments under s. 126.11 (9) (a) unless the grain dealer is a contributing grain dealer who procures producer grain in this state solely as a producer agent.

SB55-ASA1-AA1,834,9 2. Any deferred payment contract obligations under s. 126.11 (9) (c).

SB55-ASA1-AA1,834,14 (c) A grain dealer shall file an annual financial statement under par. (b) by the 15th day of the 4th month following the close of the grain dealer's fiscal year, except that the department may extend the filing deadline for up to 30 days if the grain dealer, or the accountant reviewing or auditing the financial statement, files a written extension request at least 10 days before the filing deadline.

SB55-ASA1-AA1,834,18 (d) A grain dealer licensed under s. 126.11 may not incur any obligations under deferred payment contracts for grain procured in this state unless the contractor first notifies the department and files an annual financial statement with the department.

SB55-ASA1-AA1,834,22 (2) Voluntary annual financial statement. A contributing grain dealer who is not required to file a financial statement under sub. (1) may file an annual financial statement with the department to qualify for a lower fund assessment under s. 126.15.

SB55-ASA1-AA1,834,25 (3) Reviewed or audited financial statement. (a) A grain dealer filing an annual financial statement under sub. (1) or (2) shall file an audited financial statement if any of the following applies:

SB55-ASA1-AA1,835,2 1. The grain dealer's license application reports more than $3,000,000 in payments under s. 126.11 (9) (a).

SB55-ASA1-AA1,835,4 2. The grain dealer's last 2 license applications report more than $2,000,000 in payments under s. 126.11 (9) (a).

SB55-ASA1-AA1,835,7 (b) If par. (a) does not apply, a grain dealer filing an annual financial statement under sub. (1) or (2) shall file either a reviewed financial statement or an audited financial statement.

SB55-ASA1-AA1,835,11 (4) Accounting period. A grain dealer filing an annual financial statement under sub. (1) or (2) shall file a financial statement that covers the grain dealer's last completed fiscal year unless the grain dealer has been in business for less than one year.

SB55-ASA1-AA1,835,17 (4m) Interim financial statement. The department may, at any time, require a grain dealer licensed under s. 126.11 to file an interim financial statement with the department. The grain dealer shall provide, with the interim financial statement, the grain dealer's sworn and notarized statement that the financial statement is correct. An interim financial statement need not be a reviewed financial statement or an audited financial statement.

SB55-ASA1-AA1,835,21 (5) Generally accepted accounting principles. (a) Except as provided in par. (b), a grain dealer filing an annual financial statement under this section shall file a financial statement that is prepared according to generally accepted accounting principles.

SB55-ASA1-AA1,835,24 (b) If a grain dealer is a sole proprietor and the grain dealer's financial statement is not audited, the grain dealer shall file a financial statement that is prepared on a historical cost basis.

SB55-ASA1-AA1,836,8 (6) Financial statement contents. (a) Except as provided in par. (b), a grain dealer filing a financial statement under this section shall file a financial statement that consists of a balance sheet, income statement, equity statement, statement of cash flows, notes to those statements, and any other information required by the department. If the grain dealer is a sole proprietor, the grain dealer shall file his or her business and personal financial statements. A grain dealer shall disclose on the grain dealer's financial statement, separately and clearly, the grain dealer's unpaid obligations to grain producers and producer agents.

SB55-ASA1-AA1,836,11 (b) If a grain dealer has been in business for less than one year, the grain dealer may file an annual financial statement under sub. (1) or (2) consisting of a balance sheet and notes.

SB55-ASA1-AA1,836,14 (c) A grain dealer filing a financial statement under this section shall include in the financial statement, or in an attachment to the financial statement, calculations of all of the following:

SB55-ASA1-AA1,836,16 1. The grain dealer's current ratio, excluding any assets required to be excluded under sub. (7).

SB55-ASA1-AA1,836,18 2. The grain dealer's debt to equity ratio, excluding any assets required to be excluded under sub. (7).

SB55-ASA1-AA1,836,21 (7) Assets excluded. A grain dealer may not include any of the following assets in the calculations under sub. (6) (c) unless the department specifically approves their inclusion:

SB55-ASA1-AA1,836,25 (a) A nontrade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals, unless the note or account receivable is secured by a first priority security interest in real or personal property.

SB55-ASA1-AA1,837,2 (b) A note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

SB55-ASA1-AA1,837,5 (c) A note or account that has been receivable for more than one year, unless the grain dealer has established an offsetting reserve for uncollectible notes and accounts receivable.

SB55-ASA1-AA1,837,8 (9) Entity covered. A person filing a financial statement under this section may not file, in lieu of that person's financial statement, the financial statement of the person's parent organization, subsidiary, predecessor, or successor.

SB55-ASA1-AA1,837,11 (10) Department review. The department may analyze a financial statement submitted under this section and may reject a financial statement that fails to comply with this section.

SB55-ASA1-AA1,837,16 126.14 Contributing grain dealers; disqualification. (1) Contribution required. A grain dealer who is required to be licensed under s. 126.11 (1) shall pay fund assessments under s. 126.15 unless the grain dealer is disqualified under sub. (2). A grain dealer who is voluntarily licensed under s. 126.11 may pay voluntary assessments under s. 126.15, unless the grain dealer is disqualified under sub. (2).

SB55-ASA1-AA1,837,19 (2) Disqualified grain dealer. (a) A grain dealer who is required to file security under s. 126.16 (1) (a) is disqualified from the fund until the department determines that one of the conditions in s. 126.16 (8) (a) 1. and 2. is satisfied.

SB55-ASA1-AA1,837,21 (b) A grain dealer is disqualified from the fund, and required to pay cash on delivery for producer grain, if any of the following occurs:

SB55-ASA1-AA1,837,22 1. The department denies, suspends, or revokes the grain dealer's license.

SB55-ASA1-AA1,837,25 2. The department issues a written notice disqualifying the grain dealer for cause, including failure to pay fund assessments under s. 126.15 when due or failure to file a financial statement under s. 126.13 when due.

SB55-ASA1-AA1,838,4 3. The grain dealer fails to reimburse the department, within 60 days after the department issues a reimbursement demand under s. 126.73 (1), for the full amount that the department pays to claimants under s. 126.72 (1) because of that grain dealer's default.

SB55-ASA1-AA1,838,8 4. The grain dealer fails to reimburse a bond surety, within 60 days after the bond surety issues a reimbursement demand under s. 126.73 (2), for the full amount that the surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants affected by that grain dealer's default.

SB55-ASA1-AA1,838,11 (3) Payments by disqualified grain dealer. (a) The department may not return to a disqualified grain dealer any fund assessments that the grain dealer paid as a contributing grain dealer.

SB55-ASA1-AA1,838,15 (b) A disqualified grain dealer remains liable for any unpaid fund installment under s. 126.15 that became due while the grain dealer was a contributing grain dealer. A disqualified grain dealer is not liable for any fund installment that becomes due after the grain dealer is disqualified under sub. (2).

SB55-ASA1-AA1,838,19 126.15 Contributing grain dealers; fund assessments. (1) General. A contributing grain dealer shall pay an annual fund assessment for each license year. The assessment equals $20 or the sum of the following, whichever is greater, unless the department by rule specifies a different assessment:

SB55-ASA1-AA1,838,23 (a) The grain dealer's current ratio assessment. The current ratio assessment for a license year equals the grain dealer's current ratio assessment rate under sub. (2) multiplied by the amount reported under s. 126.11 (9) (a) in the grain dealer's license application for that license year.

SB55-ASA1-AA1,839,2 (b) The grain dealer's debt to equity ratio assessment. The debt to equity ratio assessment for a license year equals the grain dealer's debt to equity ratio assessment rate under sub. (4) multiplied by the amount reported under s. 126.11 (9) (a) in the grain dealer's license application for that license year.

SB55-ASA1-AA1,839,7 (c) The grain dealer's deferred payment assessment. The deferred payment assessment for a license year equals the grain dealer's deferred payment assessment rate under sub. (6) multiplied by the payment amount, if any, that the grain dealer reports under s. 126.11 (9) (b) in the grain dealer's license application for that license year.

SB55-ASA1-AA1,839,9 (2) Current ratio assessment rate. A grain dealer's current ratio assessment rate is calculated, at the beginning of the license year, as follows: