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:
SB55-ASA1-AA1,864,66 (a) That the grain warehouse keeper is insured.
SB55-ASA1-AA1,864,87 (b) The nature, coverage, or material terms of the grain warehouse keeper's
8insurance policy.
SB55-ASA1-AA1,864,13 9126.28 Grain warehouse keepers; financial statements. (1) Required
10annual financial statement.
(a) A grain warehouse keeper shall file an annual
11financial statement with the department before the department first licenses the
12warehouse keeper under s. 126.26 (1), if the warehouse keeper operates grain
13warehouses with a combined capacity of more than 300,000 bushels.
SB55-ASA1-AA1,864,2214 (b) A grain warehouse keeper licensed under s. 126.26 (1) shall file an annual
15financial statement with the department during each license year if the grain
16warehouse keeper operates warehouses with a combined capacity of more than
17300,000 bushels. The grain warehouse keeper shall file the annual financial
18statement by the 15th day of the 4th month following the close of the grain warehouse
19keeper's fiscal year, except that the department may extend the annual filing
20deadline for up to 30 days if the grain warehouse keeper, or the accountant reviewing
21or auditing the financial statement, files a written extension request at least 10 days
22before the filing deadline.
SB55-ASA1-AA1,865,2 23(2) Voluntary annual financial statement. A contributing grain warehouse
24keeper who is not required to file an annual financial statement under sub. (1) may

1file an annual financial statement with the department in order to qualify for a lower
2fund assessment under s. 126.30.
SB55-ASA1-AA1,865,6 3(3) Reviewed or audited financial statement. (a) A grain warehouse keeper
4filing an annual financial statement under sub. (1) or (2) shall file an audited
5financial statement if the warehouse keeper operates grain warehouses with a
6combined capacity of more than 500,000 bushels.
SB55-ASA1-AA1,865,97 (b) If par. (a) does not apply, a grain warehouse keeper filing an annual financial
8statement under sub. (1) or (2) shall file either a reviewed financial statement or an
9audited financial statement.
SB55-ASA1-AA1,865,13 10(4) Accounting period. A grain warehouse keeper filing an annual financial
11statement under sub. (1) or (2) shall file a financial statement that covers the grain
12warehouse keeper's last completed fiscal year unless the grain warehouse keeper has
13been in business for less than one year.
SB55-ASA1-AA1,865,19 14(4m) Interim financial statement. The department may, at any time, require
15a grain warehouse keeper licensed under s. 126.26 (1) to file an interim financial
16statement with the department. The grain warehouse keeper shall provide, with the
17interim financial statement, the warehouse keeper's sworn and notarized statement
18that the financial statement is correct. An interim financial statement need not be
19a reviewed financial statement or an audited financial statement.
SB55-ASA1-AA1,865,23 20(5) Generally accepted accounting principles. (a) Except as provided in par.
21(b), a grain warehouse keeper filing an annual financial statement under this section
22shall file a financial statement that is prepared according to generally accepted
23accounting principles.
SB55-ASA1-AA1,866,3
1(b) If a grain warehouse keeper is a sole proprietor and the grain warehouse
2keeper's financial statement is not audited, the grain warehouse keeper shall file a
3financial statement that is prepared on a historical cost basis.
SB55-ASA1-AA1,866,9 4(6) Financial statement contents. (a) Except as provided in par. (b), a grain
5warehouse keeper filing a financial statement under this section shall file a financial
6statement that consists of a balance sheet, income statement, equity statement,
7statement of cash flows, notes to those statements, and any other information
8required by the department. A grain warehouse keeper who is a sole proprietor shall
9file his or her business and personal financial statements.
SB55-ASA1-AA1,866,1210 (b) If a grain warehouse keeper has been in business for less than one year, the
11grain warehouse keeper may file an annual financial statement under sub. (1) or (2)
12that consists of a balance sheet and notes.
SB55-ASA1-AA1,866,1513 (c) A grain warehouse keeper filing a financial statement under this section
14shall include in the financial statement, or in an attachment to the financial
15statement, calculations of all of the following:
SB55-ASA1-AA1,866,1716 1. The grain warehouse keeper's current ratio, excluding any assets required
17to be excluded under sub. (7).
SB55-ASA1-AA1,866,1918 2. The grain warehouse keeper's debt to equity ratio, excluding any assets
19required to be excluded under sub. (7).
SB55-ASA1-AA1,866,22 20(7) Assets excluded. A grain warehouse keeper may not include any of the
21following assets in calculating the ratios under sub. (6) (c), unless the department
22specifically approves their inclusion:
SB55-ASA1-AA1,867,223 (a) A nontrade note or account receivable from an officer, director, employee,
24partner, or stockholder, or from a member of the family of any of those individuals,

1unless the note or account receivable is secured by a first priority security interest
2in real or personal property.
SB55-ASA1-AA1,867,43 (b) A note or account receivable from a parent organization, a subsidiary, or an
4affiliate other than an employee.
SB55-ASA1-AA1,867,75 (c) A note or account that has been receivable for more than one year, unless
6the grain warehouse keeper has established an equal offsetting reserve for
7uncollectible notes and accounts receivable.
SB55-ASA1-AA1,867,10 8(9) Entity covered. A person filing a financial statement under this section
9may not file, in lieu of that person's financial statement, the financial statement of
10the person's parent organization, subsidiary, predecessor, or successor.
SB55-ASA1-AA1,867,13 11(10) Department review. The department may analyze a financial statement
12submitted under this section and may reject a financial statement that fails to
13comply with this section.
SB55-ASA1-AA1,867,17 14126.29 Contributing grain warehouse keepers; disqualification. (1)
15Contribution required. A grain warehouse keeper licensed under s. 126.26 (1) shall
16pay fund assessments under s. 126.30 unless the grain warehouse keeper is
17disqualified under sub. (2).
SB55-ASA1-AA1,867,20 18(2) Disqualified warehouse keeper. (a) A grain warehouse keeper who is
19required to file security under s. 126.31 (1) is disqualified from the fund until the
20department releases that security under s. 126.31 (8) (a).
SB55-ASA1-AA1,867,2221 (b) A grain warehouse keeper is disqualified from the fund if the department
22denies, suspends, or revokes the grain warehouse keeper's license.
SB55-ASA1-AA1,867,25 23(3) Payments by disqualified grain warehouse keeper. (a) The department
24may not return, to a disqualified grain warehouse keeper, any fund assessments that
25the warehouse keeper paid as a contributing grain warehouse keeper.
SB55-ASA1-AA1,868,5
1(b) A disqualified grain warehouse keeper remains liable for any unpaid fund
2installment under s. 126.30 that became due while the grain warehouse keeper was
3a contributing grain warehouse keeper. A disqualified grain warehouse keeper is not
4liable for any fund installment that becomes due after the grain warehouse keeper
5is disqualified under sub. (2).
SB55-ASA1-AA1,868,9 6126.30 Grain warehouse keepers; fund assessments. (1) General. A
7contributing grain warehouse keeper shall pay an annual fund assessment for each
8license year. The assessment equals $20 or the sum of the following, whichever is
9greater, unless the department by rule specifies a different assessment:
SB55-ASA1-AA1,868,1410 (a) The grain warehouse keeper's current ratio assessment. The current ratio
11assessment for a license year is the amount, expressed as dollars, equal to the grain
12warehouse keeper's current ratio assessment rate under sub. (2) multiplied by the
13number of bushels that the grain warehouse keeper reports under s. 126.26 (2) (e)
14or (10).
SB55-ASA1-AA1,868,1915 (b) The warehouse keeper's debt to equity ratio assessment. The debt to equity
16ratio assessment for each license year is the amount, expressed as dollars, equal to
17the grain warehouse keeper's debt to equity ratio assessment rate under sub. (4)
18multiplied by the number of bushels that the warehouse keeper reports under s.
19126.26 (2) (e) or (10).
SB55-ASA1-AA1,868,21 20(2) Current ratio assessment rate. A grain warehouse keeper's current ratio
21assessment rate is calculated, at the beginning of the license year, as follows:
SB55-ASA1-AA1,869,222 (a) If the grain warehouse keeper has filed an annual financial statement
23under s. 126.28 and that financial statement shows a current ratio of at least 1.25
24to 1.0, the grain warehouse keeper's current ratio assessment rate equals the greater

1of zero or the current ratio assessment factor in sub. (3) (a) multiplied by an amount
2determined as follows:
SB55-ASA1-AA1,869,33 1. Subtract one from the current ratio.
SB55-ASA1-AA1,869,44 2. Divide the amount determined under subd. 1. by 3.
SB55-ASA1-AA1,869,55 3. Multiply the amount determined under subd. 2. by negative one.
SB55-ASA1-AA1,869,66 4. Raise the amount determined under subd. 3. to the 3rd power.
SB55-ASA1-AA1,869,77 5. Subtract 0.75 from the current ratio.
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