Amendment CA1-SSA1-SB55

SB55-SSA1-CA1,589,22 126.29 Contributing grain warehouse keepers; disqualification. (1) Contribution required. A grain warehouse keeper licensed under s. 126.26 (1) shall pay fund assessments under s. 126.30 unless the grain warehouse keeper is disqualified under sub. (2).

SB55-SSA1-CA1,589,25 (2) Disqualified warehouse keeper. (a) A grain warehouse keeper who is required to file security under s. 126.31 (1) is disqualified from the fund until the department releases that security under s. 126.31 (8) (a).

SB55-SSA1-CA1,590,2 (b) A grain warehouse keeper is disqualified from the fund if the department denies, suspends, or revokes the grain warehouse keeper's license.

SB55-SSA1-CA1,590,5 (3) Payments by disqualified grain warehouse keeper. (a) The department may not return, to a disqualified grain warehouse keeper, any fund assessments that the warehouse keeper paid as a contributing grain warehouse keeper.

SB55-SSA1-CA1,590,10 (b) A disqualified grain warehouse keeper remains liable for any unpaid fund installment under s. 126.30 that became due while the grain warehouse keeper was a contributing grain warehouse keeper. A disqualified grain warehouse keeper is not liable for any fund installment that becomes due after the grain warehouse keeper is disqualified under sub. (2).

SB55-SSA1-CA1,590,14 126.30 Grain warehouse keepers; fund assessments. (1) General. A contributing grain warehouse keeper 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-SSA1-CA1,590,19 (a) The grain warehouse keeper's current ratio assessment. The current ratio assessment for a license year is the amount, expressed as dollars, equal to the grain warehouse keeper's current ratio assessment rate under sub. (2) multiplied by the number of bushels that the grain warehouse keeper reports under s. 126.26 (2) (e) or (10).

SB55-SSA1-CA1,590,24 (b) The warehouse keeper's debt to equity ratio assessment. The debt to equity ratio assessment for each license year is the amount, expressed as dollars, equal to the grain warehouse keeper's debt to equity ratio assessment rate under sub. (4) multiplied by the number of bushels that the warehouse keeper reports under s. 126.26 (2) (e) or (10).

SB55-SSA1-CA1,591,2 (2) Current ratio assessment rate. A grain warehouse keeper's current ratio assessment rate is calculated, at the beginning of the license year, as follows:

SB55-SSA1-CA1,591,7 (a) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 and that financial statement shows a current ratio of at least 1.25 to 1.0, the grain warehouse keeper's current ratio assessment rate equals the greater of zero or the current ratio assessment factor in sub. (3) (a) multiplied by an amount determined as follows:

SB55-SSA1-CA1,591,8 1. Subtract one from the current ratio.

SB55-SSA1-CA1,591,9 2. Divide the amount determined under subd. 1. by 3.

SB55-SSA1-CA1,591,10 3. Multiply the amount determined under subd. 2. by negative one.

SB55-SSA1-CA1,591,11 4. Raise the amount determined under subd. 3. to the 3rd power.

SB55-SSA1-CA1,591,12 5. Subtract 0.75 from the current ratio.

SB55-SSA1-CA1,591,13 6. Divide 0.65 by the amount determined under subd. 5.

SB55-SSA1-CA1,591,14 7. Raise the amount determined under subd. 6. to the 5th power.

SB55-SSA1-CA1,591,16 8. Add the amount determined under subd. 4. to the amount determined under subd. 7.

SB55-SSA1-CA1,591,17 9. Add 2 to the amount determined under subd. 8.

SB55-SSA1-CA1,591,22 (b) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 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 warehouse keeper's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by the following amount:

SB55-SSA1-CA1,591,23 1. Subtract one from the current ratio.

SB55-SSA1-CA1,591,24 2. Divide the amount determined under subd. 1. by 3.

SB55-SSA1-CA1,591,25 3. Multiply the amount determined under subd. 2. by negative one.

SB55-SSA1-CA1,592,1 4. Raise the amount determined under subd. 3. to the 3rd power.

SB55-SSA1-CA1,592,2 5. Subtract 0.75 from the current ratio.

SB55-SSA1-CA1,592,3 6. Divide 0.65 by the amount determined under subd. 5.

SB55-SSA1-CA1,592,4 7. Raise the amount determined under subd. 6. to the 5th power.

SB55-SSA1-CA1,592,6 8. Add the amount determined under subd. 4. to the amount determined under subd. 7.

SB55-SSA1-CA1,592,7 9. Add 2 to the amount determined under subd. 8.

SB55-SSA1-CA1,592,11 (c) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 and that financial statement shows a current ratio of less than or equal to 1.0 to 1.0, the warehouse keeper's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 120.81376.

SB55-SSA1-CA1,592,14 (d) If the grain warehouse keeper has not filed an annual financial statement under s. 126.28, the warehouse keeper's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 5.71235.

SB55-SSA1-CA1,592,19 (3) Current ratio assessment factor. (a) A grain warehouse keeper's current ratio assessment factor under sub. (2) (a) is 0.00003 except that, for the grain warehouse keeper's 5th or higher consecutive full license year as a contributing grain warehouse keeper, the grain warehouse keeper's current ratio assessment factor is zero.

SB55-SSA1-CA1,592,23 (b) A grain warehouse keeper's current ratio assessment factor under sub. (2) (b) to (d) is 0.000045 except that, for the grain warehouse keeper's 5th or higher consecutive full license year as a contributing grain warehouse keeper, the grain warehouse keeper's current ratio assessment factor is 0.000036.

SB55-SSA1-CA1,593,3 (4) Debt to equity ratio assessment rate. A grain warehouse keeper's debt to equity ratio assessment rate is calculated, at the beginning of the license year, as follows:

SB55-SSA1-CA1,593,8 (a) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 and that financial statement shows positive equity and a debt to equity ratio of not more than 4.0 to 1.0, the grain warehouse keeper'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-SSA1-CA1,593,9 1. Subtract 4 from the debt to equity ratio.

SB55-SSA1-CA1,593,10 2. Divide the amount determined under subd. 1. by 3.

SB55-SSA1-CA1,593,11 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-SSA1-CA1,593,12 4. Subtract 1.7 from the debt to equity ratio.

SB55-SSA1-CA1,593,13 5. Divide the amount determined under subd. 4. by 1.75.

SB55-SSA1-CA1,593,14 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-SSA1-CA1,593,16 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-SSA1-CA1,593,17 8. Add 2 to the amount determined under subd. 7.

SB55-SSA1-CA1,593,22 (b) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 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 warehouse keeper'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-SSA1-CA1,593,23 1. Subtract 4 from the debt to equity ratio.

SB55-SSA1-CA1,593,24 2. Divide the amount determined under subd. 1. by 3.

SB55-SSA1-CA1,593,25 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-SSA1-CA1,594,1 4. Subtract 1.7 from the debt to equity ratio.

SB55-SSA1-CA1,594,2 5. Divide the amount determined under subd. 4. by 1.75.

SB55-SSA1-CA1,594,3 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-SSA1-CA1,594,5 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-SSA1-CA1,594,6 8. Add 2 to the amount determined under subd. 7.

SB55-SSA1-CA1,594,11 (c) If the grain warehouse keeper has filed an annual financial statement under s. 126.28 and that financial statement shows negative equity or a debt to equity ratio of at least 5.0 to 1.0, the grain warehouse keeper's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 86.8244.

SB55-SSA1-CA1,594,14 (d) If the grain warehouse keeper has not filed an annual financial statement under s. 126.28, the grain warehouse keeper's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 8.77374.

SB55-SSA1-CA1,594,18 (5) Debt to equity ratio assessment factor. (a) A grain warehouse keeper's debt to equity ratio assessment factor under sub. (4) (a) is 0.0000125, except that it is zero for the grain warehouse keeper's 5th or higher consecutive full license year as a contributing grain warehouse keeper.

SB55-SSA1-CA1,594,22 (b) A grain warehouse keeper'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 warehouse keeper's 5th or higher consecutive full license year as a contributing grain warehouse keeper.

SB55-SSA1-CA1,594,25 (6) Quarterly installments. (a) A contributing grain warehouse keeper shall pay the grain warehouse keeper's annual fund assessment in equal quarterly installments that are due as follows:

SB55-SSA1-CA1,595,1 1. The first installment is due on October 1 of the license year.

SB55-SSA1-CA1,595,2 2. The 2nd installment is due on January 1 of the license year.

SB55-SSA1-CA1,595,3 3. The 3rd installment is due on April 1 of the license year.

SB55-SSA1-CA1,595,4 4. The 4th installment is due on July 1 of the license year.

SB55-SSA1-CA1,595,6 (b) A contributing grain warehouse keeper may prepay any of the quarterly installments under par. (a).

SB55-SSA1-CA1,595,11 (c) A contributing grain warehouse keeper who applies for an annual license after the beginning of a license year shall pay the full annual fund assessment required under this section. The grain warehouse keeper shall pay, with the first quarterly installment that becomes due after the day on which the department issues the license, all of the quarterly installments that were due before that day.

SB55-SSA1-CA1,595,15 (d) A contributing grain warehouse keeper who fails to pay the full amount of any quarterly installment when due shall pay, in addition to that installment, a late payment penalty of $50 or 10% of the overdue installment amount, whichever is greater.

SB55-SSA1-CA1,595,18 (7) Notice of annual assessment and quarterly installments. When the department issues an annual license to a contributing grain warehouse keeper, the department shall notify the grain warehouse keeper of all of the following:

SB55-SSA1-CA1,595,20 (a) The amount of the grain warehouse keeper's annual fund assessment under this section.

SB55-SSA1-CA1,595,22 (b) The amount of each required quarterly installment under sub. (6), and the date by which the grain warehouse keeper must pay each installment.

SB55-SSA1-CA1,595,24 (c) The penalty that applies under sub. (6) (d) if the grain warehouse keeper fails to pay any quarterly installment when due.

SB55-SSA1-CA1,596,4 126.31 Grain warehouse keepers; security. (1) Security required. A grain warehouse keeper shall file security with the department, and maintain that security until the department releases it under sub. (8), if all of the following apply when the department first licenses the grain warehouse keeper under s. 126.26 (1):

SB55-SSA1-CA1,596,6 (a) The grain warehouse keeper operates grain warehouses with a combined capacity of more than 300,000 bushels.

SB55-SSA1-CA1,596,8 (b) The grain warehouse keeper's annual financial statement under s. 126.28 (1) (a) shows negative equity.

SB55-SSA1-CA1,596,11 (2) Security continued. A grain warehouse keeper who filed security under ch. 127, 1999 stats., before September 1, 2002, shall maintain that security until the department releases it under sub. (8).

SB55-SSA1-CA1,596,15 (3) Amount of security. A grain warehouse keeper who is required to file or maintain security under this section shall at all times maintain security equal to at least 20% of the current local market value of grain that the grain warehouse keeper holds in this state for others.

SB55-SSA1-CA1,596,18 (4) Form of security. The department shall review, and determine whether to approve, security filed or maintained under this section. The department may approve only the following types of security:

SB55-SSA1-CA1,596,19 (a) Currency.

SB55-SSA1-CA1,596,20 (b) A commercial surety bond if all of the following apply:

SB55-SSA1-CA1,596,22 1. The surety bond is made payable to the department for the benefit of depositors.

SB55-SSA1-CA1,596,24 2. The surety bond is issued by a person authorized to operate a surety business in this state.

SB55-SSA1-CA1,597,3 3. The surety bond is issued as a continuous term bond that may be canceled only with the department's written agreement, or upon 90 days' prior written notice served on the department in person or by certified mail.

SB55-SSA1-CA1,597,5 4. The surety bond is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-SSA1-CA1,597,7 (c) A certificate of deposit or money market certificate, if all of the following apply:

SB55-SSA1-CA1,597,9 1. The certificate is issued or endorsed to the department for the benefit of depositors.

SB55-SSA1-CA1,597,11 2. The certificate may not be canceled or redeemed without the department's written permission.

SB55-SSA1-CA1,597,13 3. No person may transfer or withdraw funds represented by the certificate without the department's written permission.

SB55-SSA1-CA1,597,14 4. The certificate renews automatically without any action by the department.

SB55-SSA1-CA1,597,16 5. The certificate is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-SSA1-CA1,597,17 (d) An irrevocable bank letter of credit if all of the following apply:

SB55-SSA1-CA1,597,18 1. The letter of credit is payable to the department for the benefit of depositors.

SB55-SSA1-CA1,597,19 2. The letter of credit is issued on bank letterhead.