AB230,14,4 24(5) Display. A grain dealer shall display prominently a copy of the annual grain
25dealer's certificate of registration annual license on each truck used that the grain

1dealer uses
for dealing in grain operated by the grain dealer and. A grain dealer shall
2also display a copy of the grain dealer's annual license
at the grain dealer's
3permanent business address, if he or she the grain dealer is required to maintain a
4permanent business address under s. 127.10 (6).
AB230, s. 42 5Section 42. 127.04 of the statutes is amended to read:
AB230,14,13 6127.04 Applicability to nonresident grain dealers. A nonresident grain
7dealer, not maintaining an office or place of business in this state, engaged in this
8state in buying grain from or selling
who buys grain from or sells grain for producers
9who produced the grain in this state, is subject to registration and other provisions
10of
this chapter relating to the purchase or sale of grain, whether or not the purchase
11or sale transaction takes
without regard to whether those purchases or sales take
12place wholly or in part in this state and without regard to whether the grain dealer
13maintains an office or place of business in this state
.
AB230, s. 43 14Section 43. 127.05 of the statutes is amended to read:
AB230,14,22 15127.05 Warehouse keeper's insurance. (1) Requirement; exception. A
16warehouse keeper shall file and maintain with the department a certificate or other
17satisfactory evidence of fire and extended coverage insurance issued by an insurance
18company authorized to do business in this state insuring that insures all grain in the
19custody of the warehouse keeper, whether held for others or owned by the warehouse
20keeper, at the full local market value of the grain. The requirements of this section
21do not apply to an exempt warehouse keeper unless the warehouse keeper holds
22himself or herself out as a bonded warehouse keeper
.
AB230,15,8 23(2) (title) Cancellation and replacement. An insurance policy required under
24this chapter sub. (1) shall provide that the policy may not be canceled by the
25warehouse keeper or insurance company except on 30 days' prior written notice

1served on the department in person or by certified mail. The warehouse keeper shall
2obtain satisfactory replacement insurance and shall file satisfactory evidence of that
3replacement insurance with the department within the 30-day period and prior to
4the expiration of the policy
20 days after the cancellation notice is served on the
5department and at least 10 days before the cancellation takes effect
. The department
6shall suspend the registration license of a warehouse keeper without prior notice or
7hearing if the warehouse keeper does not secure and file satisfactory evidence of
8replacement insurance as required under this section.
AB230, s. 44 9Section 44. 127.05 (3) and (4) of the statutes are created to read:
AB230,15,1310 127.05 (3) Insurance disclosure. Before storing grain for any depositor, a
11warehouse keeper, including an exempt warehouse keeper, shall clearly disclose in
12writing and post in a conspicuous location, observable by the public, all of the
13following information:
AB230,15,1514 (a) Whether the grain is insured against fire and other natural perils, including
15a listing of the types of perils covered.
AB230,15,1816 (b) Whether the warehouse keeper has liability insurance covering the
17warehouse keeper's grain storage operations and whether the insurance covers
18liability resulting from fraud or malfeasance by the warehouse keeper.
AB230,15,25 19(4) Deductibles. Neither an insurance policy under sub. (1) nor a warehouse
20keeper's liability insurance policy may contain any deductible clause that limits the
21insurer's liability to depositors for the full value of the depositor's covered losses
22under the policy. This subsection does not prohibit a clause under which the
23warehouse keeper agrees to indemnify the insurer for a portion of each claim by a
24depositor that is paid by the insurer under the policy, as long as the clause does not
25limit the insurer's obligation to pay each depositor.
AB230, s. 45
1Section 45. 127.06 (title) of the statutes is amended to read:
AB230,16,3 2127.06 (title) Financial statement statements; warehouse keepers and
3grain dealers.
AB230, s. 46 4Section 46. 127.06 (1) of the statutes is repealed and recreated to read:
AB230,16,75 127.06 (1) Warehouse keepers; financial statements required. (a) A
6warehouse keeper required to be licensed under s. 127.02 (1) shall do all of the
7following:
AB230,16,98 1. File a financial statement with the warehouse keeper's initial application for
9a license.
AB230,16,1210 2. Except as provided in par. (e), file an annual financial statement with the
11department on or before the 15th day of the 4th month beginning after the close of
12the warehouse keeper's fiscal year.
AB230,16,1513 (b) A financial statement filed under par. (a) shall be either a reviewed financial
14statement or an audited financial statement, except that the financial statement
15shall be an audited financial statement if any of the following apply:
AB230,16,1716 1. The warehouse keeper's warehouses have a combined storage capacity of at
17least 500,000 bushels.
AB230,16,1918 2. The warehouse keeper is a sole proprietor and the financial statement is not
19prepared according to the historical cost basis method of accounting.
AB230,16,2220 (c) The department may require an exempt warehouse keeper to file an annual
21audited financial statement or reviewed financial statement if the department
22determines that such filing is necessary to protect depositors.
AB230,17,323 (d) The department may require a warehouse keeper, including an exempt
24warehouse keeper, to file a supplementary financial statement or an interim
25statement whenever the department determines that such filing is necessary to

1protect depositors. The department may require a financial statement filed under
2this paragraph to be an audited financial statement or a reviewed financial
3statement.
AB230,17,104 (e) The department may extend the filing deadline under par. (a) 2. by up to 30
5days in response to a written request from a warehouse keeper or an independent
6certified public accountant, or an independent public accountant holding a
7certificate of authority under ch. 442, that is auditing or reviewing the financial
8statement for a warehouse keeper if the department receives the request on or before
9the 5th day of the 4th month beginning after the close of the warehouse keeper's
10fiscal year and if the request states the reason for the extension.
AB230, s. 47 11Section 47. 127.06 (1m) of the statutes is created to read:
AB230,17,1312 127.06 (1m) Grain dealers; financial statements required. (a) The following
13grain dealers shall file financial statements under par. (b):
AB230,17,1414 1. A Class A grain dealer.
AB230,17,1615 2. A Class B grain dealer that uses any deferred price contract or deferred
16payment contract.
AB230,17,1817 3. A grain dealer that claims to be bonded or claims to have filed security with
18the department for the benefit of producers.
AB230,17,1919 (b) A grain dealer specified in par. (a) shall do all of the following:
AB230,17,2120 1. File a financial statement with the grain dealer's initial application for a
21license under s. 127.03 (2).
AB230,17,2422 2. Except as provided in par. (e), file an annual financial statement with the
23department on or before the 15th day of the 4th month beginning after the close of
24the grain dealer's fiscal year.
AB230,18,3
1(c) A financial statement filed under par. (b) shall be either a reviewed financial
2statement or an audited financial statement, except that the financial statement
3shall be an audited financial statement if any of the following apply:
AB230,18,54 1. The grain dealer is a Class A grain dealer that buys or sells at least
5$2,000,000 worth of grain from producers during the grain dealer's fiscal year.
AB230,18,76 2. The grain dealer is a sole proprietor and the financial statement is not
7prepared according to the historical cost basis method of accounting.
AB230,18,138 (d) The department may require a Class A grain dealer or a Class B grain dealer
9that uses any deferred price contract or deferred payment contract to file a
10supplementary financial statement or an interim statement whenever the
11department determines that such filing is necessary to protect producers. The
12department may require a financial statement filed under this paragraph to be an
13audited financial statement or a reviewed financial statement.
AB230,18,2014 (e) The department may extend the filing deadline under par. (b) 2. by up to 30
15days in response to a written request from a grain dealer or an independent certified
16public accountant, or an independent public accountant who holds a certificate of
17authority under ch. 442, that is auditing or reviewing the financial statement for a
18grain dealer, if the department receives the written request on or before the 5th day
19of the 4th month beginning after the close of the grain dealer's fiscal year and if the
20request states the reason for the extension.
AB230, s. 48 21Section 48. 127.06 (2) (title) and (a) of the statutes are amended to read:
AB230,19,222 127.06 (2) (title) Contents; general. (a) Except as provided in par. (b) sub. (3)
23or (4)
, a financial statement under sub. (1) or (1m) shall consist of a balance sheet,
24income statement, equity statement, statement of cash flows, notes to financial

1statements and other information required by the department, and shall be prepared
2in conformity with according to generally accepted accounting principles.
AB230,19,6 3(b) Except as provided in par. (b) sub. (4), a warehouse keeper's financial
4statement shall disclose, separately and clearly, the warehouse keeper's obligations
5to depositors in the form of negotiable and nonnegotiable warehouse receipts, scale
6tickets and, collateral warehouse receipts and other grain storage receipts.
AB230,19,11 7(c) Except as provided in par. (b) sub. (4), a grain dealer's financial statement
8shall disclose, separately and clearly, the grain dealer's obligations to producers in
9the form of scale tickets, receipts, settlement sheets and contracts for grain
10purchased from producers. All reviewed financial statements shall be sworn to by
11the warehouse keeper or grain dealer filing the statement.
AB230, s. 49 12Section 49. 127.06 (2) (b) of the statutes is renumbered 127.06 (4) and
13amended to read:
AB230,19,2014 127.06 (4) (title) Initial financial statement. A If a warehouse keeper or a
15Class A
grain dealer that has not previously engaged in those businesses may file an
16initial financial statement, consisting
operated as a warehouse keeper or grain
17dealer, the financial statement included with that warehouse keeper's or grain
18dealer's initial license application may consist
of an opening balance sheet and notes
19to that balance sheet, prepared in conformity with according to generally accepted
20accounting principles.
AB230, s. 50 21Section 50. 127.06 (3) of the statutes is renumbered 127.06 (7) and amended
22to read:
AB230,20,523 127.06 (7) (title) Access to Financial statement closed to public inspection.
24 A Neither a financial statement nor a disclosure of grain purchases under sub. (5)
25is not subject to open to public inspection under s. 19.35 and the. The department

1may keep a financial statement closed to the public, although the department may
2utilize and release introduce a financial statement as evidence in an enforcement
3action, brought by or on behalf of the department or in an administrative hearing or
4court proceeding in which the department is a named party, subject to any protective
5orders made by the court or administrative tribunal
.
AB230, s. 51 6Section 51. 127.06 (3) of the statutes is created to read:
AB230,20,127 127.06 (3) Financial statement of sole proprietor. If a warehouse keeper or
8grain dealer is a sole proprietor, the financial statement for that sole proprietor shall
9consist of a statement of financial condition, statement of changes in net worth, notes
10to the financial statements and other information required by the department,
11except that the financial statement for the sole proprietor's grain operations shall
12comply with sub. (2) (a).
AB230, s. 52 13Section 52. 127.06 (5) and (6) of the statutes are created to read:
AB230,20,1814 127.06 (5) Grain dealer; disclosure of amount of grain purchased. With
15every financial statement filed under sub. (1m), a grain dealer shall file a statement,
16on a form furnished by the department, showing the total dollar value of grain that
17the grain dealer purchased from producers during the grain dealer's last completed
18fiscal year and during each month of that fiscal year.
AB230,21,2 19(6) Liability adjustments. (a) For purposes of s. 127.065 (1) (c) or 127.067 (1)
20(c), a warehouse keeper or grain dealer may deduct, from the amount of a liability
21reported in the warehouse keeper's or grain dealer's financial statement, any of the
22liability adjustments allowed for the warehouse keeper or grain dealer under pars.
23(b) to (f) if the amount of the liability adjustments and of the offsetting assets are
24disclosed in the notes to the financial statement. The total amount of the liability
25adjustments under pars. (b) to (f) may not exceed the total amount of the

1corresponding assets, identified in the notes to the financial statement, that justify
2the adjustments.
AB230,21,83 (b) A grain dealer may deduct amounts that the grain dealer has borrowed from
4a lending institution and deposited with a commodities broker to maintain an
5account to hedge grain transactions. The amount of the deduction shall be the lesser
6of the amount deposited with the commodities broker or the amount owed to the
7lending institution for funds borrowed from the lending institution and deposited
8with the commodities broker.
AB230,21,149 (c) A grain dealer may deduct amounts that the grain dealer has borrowed from
10a lending institution to buy grain that has been shipped and is in transit if the grain
11dealer has a collectible account receivable for that grain on the date of the balance
12sheet. The amount of the deduction shall be the lesser of the amount receivable by
13the grain dealer for the grain that has been shipped and is in transit or the amount
14that the grain dealer owes to the lending institution for funds used to buy that grain.
AB230,21,1915 (d) A grain dealer may deduct amounts that the grain dealer has borrowed from
16a lending institution and that are secured by grain owned by the grain dealer and
17held in the grain dealer's inventory. The amount of the deduction shall be the lesser
18of the value of the grain pledged as security or the amount owed to the lending
19institution.
AB230,21,2520 (e) A grain dealer may deduct amounts that the grain dealer has borrowed from
21a lending institution and used to buy grain that the grain dealer holds in inventory
22on the date of the balance sheet if the grain dealer has entered into a written contract
23to sell the grain. The amount of the deduction shall be the lesser of the amount owed
24to the lending institution or the value of the grain purchased with the borrowed funds
25and held in inventory to fill the sales contract.
AB230,22,6
1(f) A warehouse keeper or a grain dealer may deduct amounts that the
2warehouse keeper or grain dealer has borrowed from a lending institution and used
3to pay for fertilizer, pesticides, herbicides or seed that the warehouse keeper or grain
4dealer holds in inventory on the date of the balance sheet. The amount of the
5deduction shall be the lesser of the amount owed to the lending institution or the cost
6of the fertilizer, pesticides, herbicides or seed purchased with the borrowed funds.
AB230, s. 53 7Section 53. 127.065 of the statutes is created to read:
AB230,22,10 8127.065 Minimum financial standards; warehouse keepers. (1)
9Requirement. Except as provided in sub. (2), a warehouse keeper other than an
10exempt warehouse keeper shall meet all of the following financial standards:
AB230,22,1311 (a) On the date of the warehouse keeper's initial financial statement under s.
12127.06 (1) (a) 1. and at the end of each fiscal year, the ratio of the warehouse keeper's
13current assets to current liabilities shall be at least 1.25 to 1.
AB230,22,1514 (b) At all times other than the times under par. (a), the ratio of the warehouse
15keeper's current assets to current liabilities shall be at least 1 to 1.
AB230,22,1916 (c) The warehouse keeper's total assets shall at all times exceed total liabilities,
17adjusted as provided in s. 127.06 (6), by at least $50,000 or the product obtained by
18multiplying the capacity of the warehouse keeper's warehouses by 10 cents,
19whichever is greater.
AB230,22,21 20(2) Exemptions. A warehouse keeper is not required to comply with sub. (1) if
21the warehouse keeper does all of the following:
AB230,22,2322 (a) Files with the department a bond or other security that complies with s.
23127.07.
AB230,22,2424 (b) Files monthly reports with the department under s. 127.069.
AB230,23,4
1(3) Notice of changes. A warehouse keeper that is required to comply with
2sub. (1) shall notify the department whenever the warehouse keeper knows or has
3reason to believe that the warehouse keeper no longer meets a financial standard
4under sub. (1).
AB230, s. 54 5Section 54. 127.067 of the statutes is created to read:
AB230,23,9 6127.067 Minimum financial standards; grain dealers. (1) Requirement.
7Except as provided in sub. (2), each Class B grain dealer that uses any deferred
8payment contract or deferred price contract to buy grain from a producer and each
9Class A grain dealer shall meet all of the following financial standards:
AB230,23,1210 (a) On the date of the grain dealer's initial financial statement under s. 127.06
11(1m) (b) 1. and at the end of each fiscal year, the ratio of the grain dealer's current
12assets to current liabilities shall be at least 1.25 to 1.
AB230,23,1413 (b) At all times other than the times under par. (a), the ratio of the grain dealer's
14current assets to current liabilities shall be at least 1 to 1.
AB230,23,1715 (c) The grain dealer's total assets shall at all times exceed total liabilities,
16adjusted as provided in s. 127.06 (6), by $15,000 or the amount required to achieve
17a ratio of total liabilities to equity of not more than 5 to 1, whichever is greater.
AB230,23,19 18(2) Exemptions. A grain dealer is not required to comply with sub. (1) if the
19grain dealer does all of the following:
AB230,23,2120 (a) Files with the department a bond or other security that complies with s.
21127.07.
AB230,23,2222 (b) Files monthly reports with the department under s. 127.069.
AB230,23,25 23(3) Notice of changes. A grain dealer that is required to comply with sub. (1)
24shall notify the department whenever the grain dealer knows or has reason to believe
25that the grain dealer no longer meets a financial standard under sub. (1).
AB230, s. 55
1Section 55. 127.069 of the statutes is created to read:
AB230,24,8 2127.069 Monthly reports; warehouse keepers and grain dealers. (1)
3Warehouse keeper. A warehouse keeper, other than an exempt warehouse keeper,
4that does not meet the financial standards under s. 127.065 (1) shall file monthly
5reports with the department. The warehouse keeper shall file each monthly report
6no later than the 10th day of each month. Each monthly report shall state the
7inventory of each type of grain in storage in each of the warehouse keeper's
8warehouses on the last day of the previous month.
AB230,24,10 9(2) Grain dealers. (a) All of the following shall file monthly reports with the
10department:
AB230,24,1211 1. A Class A grain dealer that does not meet the financial standards under s.
12127.067 (1).
AB230,24,1513 2. A Class B grain dealer that uses any deferred payment contract or deferred
14price contract to buy grain from producers and that does not meet the financial
15standards under s. 127.067 (1).
AB230,24,1716 3. A grain dealer that claims to be bonded or that claims to have filed security
17with the department for the benefit of producers.
AB230,24,2018 (b) A grain dealer shall file the monthly report under par. (a) with the
19department no later than the 10th day of each month. The report shall include all
20of the following:
AB230,24,2321 1. The total number of bushels of each type of grain, and the total cost of each
22type of grain, that the grain dealer purchased from producers during the previous
23month.
AB230,25,3
12. The total number of bushels of each type of grain purchased from producers
2under a deferred payment contract or deferred price contract for which the grain
3dealer had not paid as of the last day of the previous month.
AB230,25,84 3. The amount that the grain dealer owed producers for each type of grain
5identified under subd. 2. as of the last day of the previous month. The grain dealer
6shall estimate the amount owed for grain purchased under deferred price contracts
7based on the pricing formulas in the contracts and the market prices for grain as of
8the last day of the previous month.
AB230, s. 56 9Section 56. 127.07 of the statutes is repealed and recreated to read:
AB230,25,14 10127.07 Security requirements; warehouse keepers and grain dealers.
11(1)
Warehouse keepers. A warehouse keeper that claims to be bonded or claims to
12have filed security for the benefit of depositors or that does not meet the financial
13standards under s. 127.065 (1) and that is not an exempt warehouse keeper shall file
14with the department, and maintain, security under this section.
AB230,25,16 15(2) Grain dealers. All of the following grain dealers shall file with the
16department, and maintain, security under this section:
AB230,25,1817 (a) Class A grain dealer that does not meet the financial standards under s.
18127.067 (1).
AB230,25,2119 (b) A Class B grain dealer that uses any deferred payment contract or deferred
20price contract to buy grain from producers and that does not meet the financial
21standards under s. 127.067 (1).
AB230,25,2322 (c) A grain dealer that claims to be bonded or that claims to have filed security
23for the benefit of producers.
AB230,26,3
1(3) Form of security. Security filed and maintained under sub. (1) or (2) shall
2comply with the standards promulgated by the department by rule and shall be in
3one of the following forms:
Loading...
Loading...