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1(a) That the amount of each bond under sub. (1) is at least $5,000,000 but not
2more than $20,000,000.
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(b) That the amount of each bond under sub. (1) renews annually.
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(c) That each bond under sub. (1) is payable to the department for the benefit
5of the appropriate claimants under sub. (1).
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(d) That each bond under sub. (1) is issued by a person who is authorized to
7operate a surety business in this state.
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(dm) That no surety issues more than one of the 3 bonds under sub. (1).
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(e) That no bond issued under sub. (1) may be canceled or modified unless one
10of the following applies:
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1. The department agrees to the cancellation or modification.
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2. The department receives written notice from the issuer in person or by
13certified mail at least one year before the proposed cancellation or modification.
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(f) That the issuer of each bond under sub. (1) issues the bond in a form, and
15subject to any terms and conditions, that the department considers appropriate.
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16(3) B
ond procurement. The department shall procure the surety bonds under
17sub. (1) according to the procedures provided in subch. IV of ch. 16.
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18126.07 Blanket bond. (1) D
epartment to acquire bond. Using moneys
19appropriated under s. 20.115 (1) (v), the department shall acquire and maintain a
20surety bond, that takes effect on February 1, 2002, to secure payment under s. 126.72
21(3) of claims against contributing contractors, as defined in s. 126.68 (1).
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22(2) B
ond terms. The department shall ensure all of the following:
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(a) That the amount of the bond under sub. (1) is at least $20,000,000 but not
24more than $40,000,000.
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(b) That the amount of the bond under sub. (1) renews annually.
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1(c) That the bond under sub. (1) is payable to the department for the benefit of
2claimants described in sub. (1).
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(d) That the bond under sub. (1) is jointly issued by at least 3 persons acting
4as cosureties on the bond and that each of the persons is authorized to operate a
5surety business in this state.
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(e) That no issuer of the bond under sub. (1) may cancel or modify the bond, or
7withdraw as a cosurety, unless one of the following applies:
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1. The department agrees to the cancellation, modification, or withdrawal.
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2. The department receives written notice from the issuer that is delivered in
10person or by certified mail and is received at least one year before the proposed
11cancellation, modification, or withdrawal.
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(f) That the issuers of the bond under sub. (1) issue the bond in a form, and
13subject to any terms and conditions, that the department considers appropriate.
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14(3) B
ond procurement. The department shall procure the surety bond under
15sub. (1) according to the procedures provided in subch. IV of ch. 16.
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16126.08 Start-up loan to fund; repayment. On January 1, 2002, $2,000,000
17is transferred as a loan from the agrichemical management fund, to the agricultural
18producer security fund. The department shall repay this loan principal, plus interest
19compounded at 5% annually, from the agricultural producer security fund by July 1,
202006. The department shall transfer at least $250,000 from the agricultural
21producer security fund to the agrichemical management fund on July 1 of each year,
22beginning on July 1, 2003. The department may accelerate the loan repayment, at
23its discretion.
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subchapter III
25Grain DEALERS
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1126.10 Definitions. In this subchapter:
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2(1) "Cash on delivery" means full cash payment for grain when the grain dealer
3takes custody or control of the grain.
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4(2) "Cash payment" means payment in any of the following forms:
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(b) A cashier's check or a check that a bank issues and certifies.
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(c) A wire transfer.
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(d) Simultaneous barter.
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9(3) "Contributing grain dealer" means a grain dealer who is licensed under s.
10126.11, who either has paid one or more quarterly installments under s. 126.15 (7)
11or is required to contribute to the fund, but the first quarterly installment under s.
12126.15 (7) is not yet due, and who is not disqualified from the fund under s. 126.14
13(2).
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14(4) "Current ratio" means the ratio of the value of current assets to the value
15of current liabilities, calculated according to s. 126.13 (6) (c) 1.
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16(5) "Debt to equity ratio" means the ratio of the value of liabilities to equity,
17calculated according to s. 126.13 (6) (c) 2.
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18(6) "Deferred payment contract" means a contract for the procurement of grain
19under which a grain dealer takes custody or control of producer grain more than 7
20days before paying for the grain in full. "Deferred payment contract" includes a
21deferred price contract.
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22(7) "Deferred price contract" means a contract for the procurement of grain
23under which a grain dealer takes custody or control of producer grain more than 7
24days before the price of that grain must be determined under the contract.
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1(8) "Disqualified grain dealer" means a grain dealer who is disqualified from
2the fund under s. 126.14 (2).
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3(9) "Grain dealer" means a person who buys producer grain or who markets
4producer grain as a producer agent. "Grain dealer" does not include any of the
5following:
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(a) A person who merely brokers a contract between a grain producer and a
7grain dealer without becoming a party to the contract, taking control of grain, or
8accepting payment on behalf of the grain producer.
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(b) A person who merely buys or sells grain on a board of trade or commodity
10exchange.
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11(10) "Grain producer" means a person who grows grain.
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12(10m) "License year" means the period beginning on September 1 and ending
13on the following August 31.
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14(11) "Procure grain" means to buy grain or acquire the right to market grain.
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15(12) "Procure producer grain in this state" means any of the following:
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(a) To buy producer grain for receipt in this state.
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(b) To acquire the right to market producer grain grown in this state.
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18(13) "Producer agent" means a person who acts on behalf of a grain producer
19to market or accept payment for the grain producer's grain without taking title to
20that grain, including a person who uses a producer trust fund to market or accept
21payment for producer grain. "Producer agent" does not include any of the following:
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(a) A person who merely brokers a contract between a grain producer and a
23grain dealer, without becoming a party to the contract, taking control of grain, or
24accepting payment on behalf of the grain producer.
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1(b) A person who merely holds or transports grain for a grain producer without
2marketing the grain or accepting payment on behalf of the grain producer.
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3(14) "Producer grain" means grain that is owned by or held in trust for one or
4more grain producers. "Producer grain" includes grain that a producer agent
5markets for a grain producer, without taking title to the grain.
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6126.11 Grain dealers; licensing. (1) L
icense required. Except as provided
7in sub. (2), no grain dealer may procure producer grain in this state without a current
8annual license from the department.
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9(2) E
xempt grain dealers. The following grain dealers are not required to hold
10a license under this section, but may volunteer to be licensed:
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(a) A grain dealer who pays cash on delivery for all producer grain.
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(b) A grain dealer who buys producer grain solely for the grain dealer's own use
13as feed or seed and who spends less than $400,000 per license year for that grain.
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14(2m) License terms. A license under this section expires on the August 31
15following its issuance. No person may transfer or assign a license issued under this
16section.
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17(3) L
icense application. A grain dealer shall apply for an annual license under
18this section in writing, on a form provided by the department. An applicant shall
19provide all of the following:
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(a) The applicant's legal name and any trade name under which the applicant
21proposes to operate as a grain dealer.
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(b) A statement of whether the applicant is an individual, corporation,
23partnership, cooperative, limited liability company, trust, or other legal entity. If the
24applicant is a corporation or cooperative, the applicant shall identify each officer of
1the corporation or cooperative. If the applicant is a partnership, the applicant shall
2identify each partner.
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(c) The mailing address of the applicant's primary business location and the
4name of a responsible individual who may be contacted at that location.
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(d) The street address of each business location from which the applicant
6operates in this state as a grain dealer and the name of a responsible individual who
7may be contacted at each location that is staffed.
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(e) All license fees and surcharges required under sub. (4).
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(f) The sworn and notarized statement required under sub. (9).
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(g) A financial statement if required under s. 126.13 (1) and not yet filed.
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(h) Other relevant information required by the department.
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12(4) L
icense fees and surcharges. A grain dealer applying for an annual license
13under this section shall pay the following fees and surcharges, unless the
14department specifies a different fee or surcharge amount by rule:
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(a) A nonrefundable license processing fee of $25.
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(b) The following license fees based on the grain dealer's reported grain
17payments under sub. (9) (a), less any credit provided under sub. (6):
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1. A fee of $500, plus $225 per business location in excess of one business
19location, if the amount under sub. (9) (a) is at least $500,000.
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2. A fee of $200 if the amount under sub. (9) (a) is at least $50,000 but less than
21$500,000.
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3. A fee of $50 if the amount under sub. (9) (a) is less than $50,000.
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(c) A license fee of $45 for each truck, in excess of one truck, that the grain dealer
24uses to haul grain in this state.
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1(d) A license surcharge of $425 if the grain dealer files a financial statement
2under s. 126.13 (1) that is not an audited financial statement.
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(e) A license surcharge of $500 if the department determines that, within 365
4days before submitting the license application, the applicant operated as a grain
5dealer without a license in violation of sub. (1). The applicant shall also pay any
6license fees, license surcharges, and fund assessments that are still due for any
7license year in which the applicant violated sub. (1).
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(f) A license surcharge of $100 if during the preceding 12 months the applicant
9failed to file an annual financial statement required under s. 126.13 (1) (b) by the
10deadline specified in s. 126.13 (1) (c).
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(g) A license surcharge of $100 if a renewal applicant fails to renew a license
12by the license expiration date of August 31. This paragraph does not apply to a grain
13dealer who is exempt under sub. (2) and is voluntarily licensed.
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14(4m) Effect of payment of surcharge. Payment under sub. (4) (e) does not
15relieve the applicant of any other civil or criminal liability that results from the
16violation of sub. (1), but does not constitute evidence of any law violation.
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17(5) L
icense for part of year; fees. A person who applies for an annual grain
18dealer license after the beginning of a license year shall pay the full annual fee
19amounts required under sub. (4).
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20(6) F
ee credits. If the balance in the fund contributed by grain dealers exceeds
21$2,000,000 on June 30 of any license year, the department shall credit 50% of the
22excess amount against fees charged under sub. (4) (b) to contributing grain dealers
23who file timely license renewal applications for the next license year. The
24department shall credit each contributing grain dealer on a prorated basis, in
1proportion to the total fees that the grain dealer paid under sub. (4) (b) for the 4
2preceding license years.
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3(7) F
ee statement. The department shall provide, with each license application
4form, a written statement of all license fees and surcharges required under sub. (4)
5or the formula for determining them. The department shall specify any fee credit for
6which the applicant may qualify under sub. (6).
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7(8) N
o license without full payment. The department may not issue an
8annual license under sub. (1) until the applicant pays all license fees and surcharges
9identified in the department's statement under sub. (7). The department shall
10refund a fee or surcharge paid under protest if upon review the department
11determines that the fee or surcharge is not applicable.
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12(9) S
worn and notarized statement. As part of a license application under sub.
13(3), an applicant shall provide a sworn and notarized statement, signed by the
14applicant or an officer of the applicant, that reports all of the following:
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(a) The total amount that the applicant paid, during the applicant's last
16completed fiscal year, for producer grain procured in this state. If the applicant has
17not yet operated as a grain dealer in this state, the applicant shall estimate the
18amount that the applicant will pay during the applicant's first complete fiscal year
19for producer grain procured in this state.
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(b) The amount of the payments under par. (a) made under deferred payment
21contracts.
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(c) Whether the applicant has had any obligations under deferred payment
23contracts, for grain procured in this state, at any time since the beginning of the
24applicant's last completed fiscal year.
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1(10) A
ction granting or denying application. The department shall grant or
2deny an application under sub. (3) within 30 days after the department receives a
3complete application. If the department denies a license application, the department
4shall give the applicant a written notice stating the reason for the denial.
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5(11) L
icense displayed. A grain dealer licensed under sub. (1) shall
6prominently display a copy of that license at the following locations:
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(a) On each truck that the grain dealer uses to haul grain in this state.
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(b) At each business location from which the grain dealer operates in this state.
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9126.12 Grain dealers; insurance. (1) F
ire and extended coverage
10insurance. A grain dealer licensed, or required to be licensed, under s. 126.11 shall
11maintain fire and extended coverage insurance, issued by an insurance company
12authorized to do business in this state, that covers all grain in the custody of the grain
13dealer, whether owned by the grain dealer or held for others, at the full local market
14value of the grain.
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15(2) I
nsurance cancellation; replacement. Whenever an insurance policy
16under sub. (1) is canceled, the grain dealer shall replace the policy so that there is
17no lapse in coverage.