Amendment AA1-ASA1-SB55

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:

SB55-ASA1-AA1,839,13 (a) If the grain dealer has filed an annual financial statement under s. 126.13 and that financial statement shows a current ratio of at least 1.25 to 1.0, the grain dealer's current ratio assessment rate equals the greater of zero or the current ratio assessment factor in sub. (3) (a) multiplied by the following amount:

SB55-ASA1-AA1,839,14 1. Subtract one from the current ratio.

SB55-ASA1-AA1,839,15 2. Divide the amount determined under subd. 1. by 3.

SB55-ASA1-AA1,839,16 3. Multiply the amount determined under subd. 2. by negative one.

SB55-ASA1-AA1,839,17 4. Raise the amount determined under subd. 3. to the 3rd power.

SB55-ASA1-AA1,839,18 5. Subtract 0.75 from the current ratio.

SB55-ASA1-AA1,839,19 6. Divide 0.65 by the amount determined under subd. 5.

SB55-ASA1-AA1,839,20 7. Raise the amount determined under subd. 6. to the 5th power.

SB55-ASA1-AA1,839,22 8. Add the amount determined under subd. 4. to the amount determined under subd. 7.

SB55-ASA1-AA1,839,23 9. Add 2 to the amount determined under subd. 8.

SB55-ASA1-AA1,840,2 (b) If the grain dealer has filed an annual financial statement under s. 126.13 and that financial statement shows a current ratio of less than 1.25 to 1.0, but greater than 1.0 to 1.0, the grain dealer's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by the following amount:

SB55-ASA1-AA1,840,3 1. Subtract one from the current ratio.

SB55-ASA1-AA1,840,4 2. Divide the amount determined under subd. 1. by 3.

SB55-ASA1-AA1,840,5 3. Multiply the amount determined under subd. 2. by negative one.

SB55-ASA1-AA1,840,6 4. Raise the amount determined under subd. 3. to the 3rd power.

SB55-ASA1-AA1,840,7 5. Subtract 0.75 from the current ratio.

SB55-ASA1-AA1,840,8 6. Divide 0.65 by the amount determined under subd. 5.

SB55-ASA1-AA1,840,9 7. Raise the amount determined under subd. 6. to the 5th power.

SB55-ASA1-AA1,840,11 8. Add the amount determined under subd. 4. to the amount determined under subd. 7.

SB55-ASA1-AA1,840,12 9. Add 2 to the amount determined under subd. 8.

SB55-ASA1-AA1,840,16 (c) If the grain dealer has filed an annual financial statement under s. 126.13 and that financial statement shows a current ratio of less than or equal to 1.0 to 1.0, the grain dealer's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 120.81376.

SB55-ASA1-AA1,840,19 (d) Except as provided in par. (e), if the grain dealer has not filed an annual financial statement under s. 126.13, the grain dealer's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 5.71235.

SB55-ASA1-AA1,840,24 (e) If the grain dealer has not filed an annual financial statement under s. 126.13 and the grain dealer procures grain in this state solely as a producer agent, the grain dealer's current ratio assessment rate is 0.00025, except that, for the grain dealer's 5th or higher consecutive full license year of participation in the fund, the grain dealer's current ratio assessment rate is 0.000175.

SB55-ASA1-AA1,841,4 (3) Current ratio assessment factor. (a) A grain dealer's current ratio assessment factor under sub. (2) (a) is 0.00003 except that, for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer, the grain dealer's current ratio assessment factor is zero.

SB55-ASA1-AA1,841,8 (b) A grain dealer's current ratio assessment factor under sub. (2) (b) to (d) is 0.000045 except that, for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer, the grain dealer's current ratio assessment factor is 0.000036.

SB55-ASA1-AA1,841,10 (4) Debt to equity assessment rate. A grain dealer's debt to equity ratio assessment rate is calculated, at the beginning of the license year, as follows:

SB55-ASA1-AA1,841,15 (a) If the grain dealer has filed an annual financial statement under s. 126.13 and that financial statement shows positive equity and a debt to equity ratio of not more than 4.0 to 1.0, the grain dealer's debt to equity ratio assessment rate equals the greater of zero or the debt to equity ratio assessment factor in sub. (5) (a) multiplied by the following amount:

SB55-ASA1-AA1,841,16 1. Subtract 4 from the debt to equity ratio.

SB55-ASA1-AA1,841,17 2. Divide the amount determined under subd. 1. by 3.

SB55-ASA1-AA1,841,18 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-ASA1-AA1,841,19 4. Subtract 1.7 from the debt to equity ratio.

SB55-ASA1-AA1,841,20 5. Divide the amount determined under subd. 4. by 1.75.

SB55-ASA1-AA1,841,21 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-ASA1-AA1,841,23 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-ASA1-AA1,841,24 8. Add 2 to the amount determined under subd. 7.

SB55-ASA1-AA1,842,5 (b) If the grain dealer has filed an annual financial statement under s. 126.13 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 dealer'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-ASA1-AA1,842,6 1. Subtract 4 from the debt to equity ratio.

SB55-ASA1-AA1,842,7 2. Divide the amount determined under subd. 1. by 3.

SB55-ASA1-AA1,842,8 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-ASA1-AA1,842,9 4. Subtract 1.7 from the debt to equity ratio.

SB55-ASA1-AA1,842,10 5. Divide the amount determined under subd. 4. by 1.75.

SB55-ASA1-AA1,842,11 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-ASA1-AA1,842,13 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-ASA1-AA1,842,14 8. Add 2 to the amount determined under subd. 7.

SB55-ASA1-AA1,842,18 (c) If the grain dealer has filed an annual financial statement under s. 126.13 and that financial statement shows negative equity or a debt to equity ratio of at least 5.0 to 1.0, the grain dealer's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 86.8244.

SB55-ASA1-AA1,842,22 (d) Except as provided in par. (e), if the grain dealer has not filed an annual financial statement under s. 126.13, the grain dealer's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 8.77374.

SB55-ASA1-AA1,843,2 (e) If the grain dealer has not filed an annual financial statement under s. 126.13 and the grain dealer procures grain in this state solely as a producer agent, the grain dealer's debt to equity ratio assessment rate is 0.00025, except that it is 0.000175 for the grain dealer's 5th or higher consecutive full license year of participation in the fund.

SB55-ASA1-AA1,843,6 (5) Debt to equity ratio assessment factor. (a) A grain dealer's debt to equity ratio assessment factor under sub. (4) (a) is 0.0000125, except that it is zero for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer.

SB55-ASA1-AA1,843,9 (b) A grain dealer'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 dealer's 5th or higher consecutive full license year as a contributing grain dealer.

SB55-ASA1-AA1,843,12 (6) Deferred payment assessment rate. A grain dealer's deferred payment assessment rate is 0.0035, except that it is 0.002 for the grain dealer's 5th or higher consecutive full license year as a contributing grain dealer.

SB55-ASA1-AA1,843,15 (7) Quarterly installments. (a) A contributing grain dealer shall pay the grain dealer's annual fund assessment in equal quarterly installments that are due as follows: