SB55-ASA1-AA1,846,1919 4. The certificate renews automatically without any action by the department.
SB55-ASA1-AA1,846,2120 5. The certificate is issued in a form, and subject to any terms and conditions,
21that the department considers appropriate.
SB55-ASA1-AA1,846,2222 (d) An irrevocable bank letter of credit if all of the following apply:
SB55-ASA1-AA1,846,2423 1. The letter of credit is payable to the department for the benefit of grain
24producers and producer agents.
SB55-ASA1-AA1,846,2525 2. The letter of credit is issued on bank letterhead.
SB55-ASA1-AA1,847,1
13. The letter of credit is issued for an initial period of at least one year.
SB55-ASA1-AA1,847,42 4. The letter of credit renews automatically unless at least 90 days before the
3scheduled renewal date the issuing bank gives the department written notice, in
4person or by certified mail, that the letter of credit will not be renewed.
SB55-ASA1-AA1,847,65 5. The letter of credit is issued in a form, and subject to any terms and
6conditions, that the department considers appropriate.
SB55-ASA1-AA1,847,97 (e) Security filed under ch. 127, 1999 stats., before September 1, 2002, except
8that on January 1, 2003, the department shall withdraw its approval of any security
9that is not approvable under pars. (a) to (d).
SB55-ASA1-AA1,847,13 10(5) Department custody of security. The department shall hold, in its custody,
11all security filed and maintained under this section. The department shall hold the
12security for the benefit of grain producers and producer agents who deliver grain to
13a grain dealer.
SB55-ASA1-AA1,847,18 14(6) Monthly reports. A grain dealer who is required to file or maintain
15security under this section shall file monthly reports with the department. The grain
16dealer shall file a report on or before the 10th day of each month, in a form specified
17by the department. In a monthly report, a grain dealer shall provide information
18reasonably required by the department, including all of the following:
SB55-ASA1-AA1,847,2119 (a) The grain dealer's average monthly payment for the 3 months, during the
20preceding 12 months, in which the grain dealer made the largest monthly payments
21for producer grain procured in this state.
SB55-ASA1-AA1,848,222 (b) The grain dealer's highest total unpaid obligations, at any time during the
23preceding 12 months, for producer grain procured in this state under deferred
24payment contracts. If the amount owed on deferred price contracts has not yet been

1determined, the grain dealer shall estimate the amount based on contract terms and
2prevailing market prices on the last day of the previous month.
SB55-ASA1-AA1,848,4 3(7) Additional security. (a) The department may, at any time, demand
4additional security from a grain dealer if any of the following applies:
SB55-ASA1-AA1,848,85 1. The grain dealer's existing security falls below the amount required under
6sub. (3) for any reason, including depreciation in the value of the security filed with
7the department, an increase in grain payments or grain prices, or the cancellation
8of any security filed with the department.
SB55-ASA1-AA1,848,109 2. The grain dealer fails to provide required information that is relevant to a
10determination of security requirements.
SB55-ASA1-AA1,848,1511 (b) The department shall issue a demand under par. (a) in writing. The
12department shall indicate why the security is required, the amount of security
13required, and the deadline date for filing security. The department may not specify
14a deadline for filing security that is more than 30 days after the date on which the
15department issues its demand for security.
SB55-ASA1-AA1,848,1816 (c) A grain dealer may request a hearing, under ch. 227, on a demand for
17security under par. (b). A request for hearing does not automatically stay a security
18demand.
SB55-ASA1-AA1,849,219 (d) If a grain dealer fails to comply with the department's demand for security
20under this subsection, the grain dealer shall give written notice of that fact to all
21grain producers and producer agents from whom the grain dealer procures producer
22grain in this state. If the grain dealer fails to give accurate notice under this
23paragraph within 5 days after the deadline for filing security under par. (b) has
24passed, the department shall promptly notify those grain producers and producer
25agents by publishing a class 3 notice under ch. 985. The department may also give

1individual notice to those grain producers or producer agents of whom the
2department is aware.
SB55-ASA1-AA1,849,43 (e) If a grain dealer fails to comply with the department's demand for security
4under this subsection, the department may do any of the following:
SB55-ASA1-AA1,849,75 1. Issue a summary order under s. 126.55 (2) that prohibits the grain dealer
6from procuring producer grain or requires the grain dealer to pay cash on delivery
7for all producer grain.
SB55-ASA1-AA1,849,88 2. Suspend or revoke the grain dealer's license.
SB55-ASA1-AA1,849,11 9(8) Releasing security. (a) The department may release security filed under
10sub. (1) (a), except for any amount of security that the grain dealer is required to file
11because sub. (1) (b) applies to the grain dealer, if any of the following applies:
SB55-ASA1-AA1,849,1612 1. The grain dealer reports, for at least 2 consecutive years, no more than
13$500,000 in annual grain payments under s. 126.11 (9) (a) and the grain dealer pays
14the quarterly fund assessment that would have been required of the grain dealer if
15the grain dealer had been a contributing grain dealer on the most recent quarterly
16installment date under s. 126.15 (7).
SB55-ASA1-AA1,849,2117 2. The grain dealer's annual financial statement under s. 126.13 shows positive
18equity for at least 2 consecutive years and the grain dealer pays the quarterly fund
19assessment that would have been required of the grain dealer if the grain dealer had
20been a contributing grain dealer on the most recent quarterly installment date under
21s. 126.15 (7).
SB55-ASA1-AA1,849,2422 (b) The department may release security filed under sub. (1) (b), except for any
23amount of security that the grain dealer is required to file because sub. (1) (a) applies
24to the grain dealer, if any of the following applies:
SB55-ASA1-AA1,850,2
11. The grain dealer has not had any deferred payment contract obligations
2since the beginning of the grain dealer's last completed fiscal year.
SB55-ASA1-AA1,850,53 2. The grain dealer files 2 consecutive annual financial statements under s.
4126.13 showing that the grain dealer meets the applicable equity requirement and
5debt to equity ratio under sub. (1) (b).
SB55-ASA1-AA1,850,76 (c) On December 1, 2002, the department may release security maintained
7under sub. (2), unless the grain dealer is required to file security under sub. (1).
SB55-ASA1-AA1,850,98 (d) The department may release security to the extent that the security exceeds
9the amount required under sub. (3).
SB55-ASA1-AA1,850,1110 (e) The department may release security if the grain dealer files alternative
11security, of equivalent value, that the department approves.
SB55-ASA1-AA1,850,1312 (f) The department shall release security if the grain dealer is no longer in
13business and has paid all grain obligations in full.
SB55-ASA1-AA1,850,18 14126.17 Grain dealers; records. (1) Records and accounts; general. A grain
15dealer shall keep records and accounts of all grain procured and all grain sold or
16marketed by the grain dealer. A grain dealer shall keep records that are complete,
17accurate, current, well-organized, and accessible, so that the grain dealer and the
18department can readily determine all of the following:
SB55-ASA1-AA1,850,2019 (a) The kinds and amounts of grain procured, the procurement dates, the
20procurement terms, and the persons from whom the grain dealer procured the grain.
SB55-ASA1-AA1,850,2321 (b) The kinds and amounts of grain sold or marketed, the sale or marketing
22dates, the sale or marketing terms, and the persons to whom the grain dealer sold
23or marketed the grain.
SB55-ASA1-AA1,850,2524 (c) The kinds and amounts of grain, received from others, that the grain dealer
25has used for feed, seed, milling, manufacturing, processing, or other purposes.
SB55-ASA1-AA1,851,3
1(d) The kinds and amounts of grain, received from others, that the grain dealer
2has on hand, including the kinds and amounts of grain owned by the grain dealer,
3and the kinds and amounts of grain held for others.
SB55-ASA1-AA1,851,84 (e) The nature and amount of the grain dealer's obligations to grain producers
5and producer agents, including obligations under deferred payment contracts. The
6grain dealer shall keep a daily record of obligations under priced contracts and a
7separate daily record of obligations under deferred price contracts that have not yet
8been priced.
SB55-ASA1-AA1,851,109 (f) The nature and amount of the grain dealer's obligations to depositors, as
10defined in s. 126.25 (5), under agreements for the storage of grain, if any.
SB55-ASA1-AA1,851,1311 (g) The grain dealer's accounts receivable from the sale or marketing of grain,
12including the names of the account debtors, the amount receivable from each account
13debtor, and the dates on which payment is due.
SB55-ASA1-AA1,851,15 14(2) Records of grain procured. A grain dealer shall keep records all of the
15following related to each shipment of grain procured by the grain dealer:
SB55-ASA1-AA1,851,1616 (a) The kind and weight of grain procured.
SB55-ASA1-AA1,851,1717 (b) The grade and quality of the grain if determined.
SB55-ASA1-AA1,851,1818 (c) The date on which the grain dealer procured the grain.
SB55-ASA1-AA1,851,2019 (d) The name and address of the person from whom the grain dealer procured
20the grain.
SB55-ASA1-AA1,851,2221 (e) Whether the grain dealer purchased the grain, holds it under an agreement
22for storage, or is marketing the grain as a producer agent.
SB55-ASA1-AA1,851,2323 (f) The terms of purchase, storage, or marketing.
SB55-ASA1-AA1,851,2524 (g) If the grain dealer procured the grain under a deferred payment contract,
25the terms of that contract.
SB55-ASA1-AA1,852,2
1(3) Records retention; inspection. (a) A grain dealer shall keep copies of all
2of the following records for at least 6 years after the records are created:
SB55-ASA1-AA1,852,33 1. Records required under this section and s. 126.18 (2).
SB55-ASA1-AA1,852,54 2. Records that the grain dealer was required to keep, under ch. 127, 1999
5stats., and department rules, before September 1, 2002.
SB55-ASA1-AA1,852,76 (b) A grain dealer shall make records required under this section available to
7the department for inspection and copying upon request.
SB55-ASA1-AA1,852,10 8126.18 Grain dealers; receipts for grain. (1) Requirement. Whenever a
9grain dealer receives grain from any person, the grain dealer shall immediately give
10that person a written receipt for the grain that includes all of the following:
SB55-ASA1-AA1,852,1211 (a) The name of the grain dealer and a statement indicating whether the grain
12dealer is a corporation.
SB55-ASA1-AA1,852,1413 (b) A permanent business address at which the holder of the receipt can readily
14contact the grain dealer.
SB55-ASA1-AA1,852,1515 (c) A statement identifying the document as a receipt for grain.
SB55-ASA1-AA1,852,1616 (d) The date on which the grain dealer received the grain.
SB55-ASA1-AA1,852,1717 (e) The kind of grain received.
SB55-ASA1-AA1,852,1918 (f) The net weight of grain received or, if the grain dealer receives the grain at
19the grain producer's farm, the approximate net weight of the grain.
SB55-ASA1-AA1,852,2020 (g) The grade and quality of the grain, if determined.
SB55-ASA1-AA1,852,2221 (h) A statement identifying the receipt as a purchase receipt, storage receipt,
22or receipt for grain marketed by the grain dealer as a producer agent.
SB55-ASA1-AA1,852,2523 (i) The grain dealer's promise to pay the total amount due for grain, less any
24discounts that may apply, within 7 calendar days after the date of receipt of the grain.
25This requirement does not apply if any of the following applies:
SB55-ASA1-AA1,853,1
11. The grain dealer pays cash on delivery.
SB55-ASA1-AA1,853,32 2. The grain dealer receives the grain under a deferred payment contract that
3complies with s. 126.19.
SB55-ASA1-AA1,853,44 3. The receipt is clearly identified as a storage receipt.
SB55-ASA1-AA1,853,8 5(1m) Effect of failure to identify receipt. A receipt not clearly identified
6under sub. (1) (h) is considered a purchase receipt except that, if the grain dealer also
7operates as a grain warehouse keeper, as defined in s. 126.25 (9), under the same
8name, a receipt not clearly identified is considered a storage receipt.
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:
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