AB230, s. 63 11Section 63. 127.105 of the statutes is amended to read:
AB230,33,18 12127.105 Liability of warehouse keepers and grain dealers. (1) A
13warehouse keeper or grain dealer is liable to a producer or depositor if a subsidiary
14or affiliate of the warehouse keeper or grain dealer fails to pay the producer in full,
15in cash and according to the terms of the contract between the subsidiary or affiliate
16and the producer, amounts owed to the producer by the subsidiary or affiliate
when
17due, or fails to return stored grain to the depositor upon demand, according to a
18contract for the storage, purchase or sale of grain
.
AB230,33,25 19(2) Any corporation or cooperative that owns, controls or acts as a warehouse
20keeper or grain dealer is liable to a producer or depositor if the warehouse keeper or
21grain dealer fails to pay in full, in cash and according to the terms of the contract
22between the warehouse keeper or grain dealer and the producer, amounts owed to
23the producer by the warehouse keeper or grain dealer
the producer when due, or fails
24to return stored grain to the depositor upon demand, according to a contract for the
25storage, purchase or sale of grain
.
AB230,34,6
1(3) The department may commence an action in the circuit court for the county
2in which the warehouse keeper or grain dealer is located to enforce this section
on
3behalf of producers or depositors to obtain payment of amounts owed under this
4section. The department may settle any claim of a producer or depositor under this
5section with the consent of the claimant and may decline to represent a claimant who
6does not agree to a settlement recommended by the department
.
AB230, s. 64 7Section 64. 127.11 (2) of the statutes is amended to read:
AB230,34,128 127.11 (2) False or misleading statement. No warehouse keeper or grain
9dealer may make any false or misleading statement in any application for a
10certificate of registration license or in any other statement or report that the
11warehouse keeper or grain dealer is
required to be submitted submit to the
12department under this chapter.
AB230, s. 65 13Section 65. 127.12 (2) of the statutes is amended to read:
AB230,34,2214 127.12 (2) A grain dealer may, prior to purchasing grain from, or selling grain
15for, a producer or depositor, require
as a condition to the purchase or sale that the
16buying grain from or selling grain for a producer or depositor require the producer
17to
provide the grain dealer with a written statement which specifies the existence,
18nature and amount of
that discloses any liens or security interests in the grain, the
19nature and amount of those liens or security interests
and the identity of any lien or
20security interest holders. No producer or depositor may falsify any information
21provided to a grain dealer under this subsection, or fraudulently withhold
22information to obtain a sale of grain.
AB230, s. 66 23Section 66. 127.13 (title) of the statutes is repealed and recreated to read:
AB230,34,24 24127.13 (title) Inspection and investigation.
AB230, s. 67
1Section 67. 127.13 (1) of the statutes is renumbered 127.13 (1) (a) and
2amended to read:
AB230,35,103 127.13 (1) (a) The department may investigate or inspect the operations of a
4warehouse keeper or grain dealer's operation at any time deemed necessary to
5determine qualifications for a certificate of registration,
dealer to determine whether
6the warehouse keeper or grain dealer is in
compliance with this chapter or rules
7promulgated under this chapter, the sufficiency of whether a warehouse keeper has
8sufficient
grain on hand to meet obligations to depositors or the ability of the whether
9a
grain dealer or warehouse keeper to make payment is able to pay for grain when
10payment is due.
AB230,35,14 11(b) In connection with an investigation or inspection under par. (a), the
12department may require a grain dealer or warehouse keeper to file a sworn or
13audited statement of business operations and financial position, including a current
14daily position statement.
AB230, s. 68 15Section 68. 127.13 (1) (c) of the statutes is created to read:
AB230,35,1916 127.13 (1) (c) A warehouse keeper or grain dealer shall make available to the
17department, upon demand, documents and records that the warehouse keeper or
18grain dealer is required to keep under this chapter or rules promulgated under this
19chapter so that the department may inspect or copy the documents and records.
AB230, s. 69 20Section 69. 127.13 (2) and (3) of the statutes are amended to read:
AB230,35,2321 127.13 (2) Annual inspection of warehouses. The department shall annually
22inspect each warehouse in this state operated by a licensed warehouse keeper
23annually and may inspect such a warehouse at other times.
AB230,35,25 24(3) (title) Periodic review of Class A grain dealers' records. The department
25shall periodically review the records of each Class A grain dealer in this state.
AB230, s. 70
1Section 70. 127.14 of the statutes is repealed and recreated to read:
AB230,36,4 2127.14 Claims by producers and depositors; default proceedings and
3payment of claims. (1)
Filing claims. Any of the following may file a written claim
4with the department under this section:
AB230,36,65 (a) A producer who claims that a grain dealer has failed to pay the producer for
6grain when due.
AB230,36,87 (b) A depositor who claims that a warehouse keeper has failed to return stored
8grain upon demand.
AB230,36,16 9(2) Initiating default proceedings. Upon receiving a written claim under sub.
10(1), or upon receiving other evidence that a warehouse keeper or grain dealer has
11defaulted on obligations to producers or depositors, the department may initiate a
12default proceeding under this section. To initiate a default proceeding, the
13department shall issue an order requiring all interested producers or depositors to
14file verified proofs of claim with the department before a specified date or be barred
15from participating in any recovery made by the department. The department shall
16publish notice of the order in all of the following ways:
AB230,36,1917 (a) By posting a copy of the order in a prominent location at each place of
18business in this state operated by the warehouse keeper or grain dealer and on each
19truck operated by the warehouse keeper or grain dealer that can be readily located.
AB230,36,2120 (b) By mailing a copy of the order to the warehouse keeper or grain dealer and
21to the warehouse keeper's or grain dealer's surety, if any.
AB230,36,2422 (c) By publishing the contents of the order as a class 3 notice under ch. 985, with
23the last insertion of the notice not later than 30 days before the deadline for filing
24claims.
AB230,37,3
1(d) By mailing a copy of the order, or equivalent notice, to those producers or
2depositors who are identified by the department and who appear to have unpaid
3claims against the warehouse keeper or grain dealer.
AB230,37,9 4(3) Audit; proposed order. If the department initiates a default proceeding
5under this section, the department shall audit producer or depositor claims filed with
6the department and shall issue a proposed order allowing or disallowing claims. The
7department shall mail a copy of the proposed order to the warehouse keeper or grain
8dealer, to the warehouse keeper's or grain dealer's surety, if any, and to each producer
9or depositor who filed a timely claim in the proceeding.
AB230,37,12 10(4) Untimely claims disallowed. (a) The department shall disallow a claim
11of a producer or depositor filed after the claim filing deadline specified under sub. (2)
12unless the department waives the claim filing deadline for good cause shown.
AB230,37,1513 (b) The department shall disallow a claim for any payment that was due more
14than 60 days before the date on which the department first received a written claim
15under sub. (1).
AB230,37,19 16(5) Notice and hearing. The department shall hold a public hearing on its
17proposed order under sub. (3). The department shall provide a notice of the hearing
18to each person to whom the department is required to provide a copy of its proposed
19order under sub. (3).
AB230,37,25 20(6) Final order after hearing. (a) Before issuing a final decision and order
21in a default proceeding under this section, the department shall follow the
22procedures in s. 227.46, except that if after the hearing under sub. (5) there are no
23objections to the department's proposed order, the department may adopt the
24proposed order as the department's final decision and order without further notice
25or hearing.
AB230,38,3
1(b) The department shall serve its final decision and order on each person to
2whom the department is required to provide a copy of its proposed order under sub.
3(3).
AB230,38,7 4(7) Converting security to pay allowed claims. For the purpose of paying
5claims allowed under sub. (6), the department may convert any security that a
6warehouse keeper or grain dealer filed with the department and may apply the
7proceeds to pay the allowed claims.
AB230,38,12 8(8) Obtaining payment of allowed claims. The department may demand and
9receive payment of claims allowed under sub. (6) on behalf of producers or depositors
10and may commence an action in court to recover those claims. The department may
11demand and receive grain, money or other assets in order to satisfy claims of
12producers or depositors.
AB230,38,18 13(9) Paying allowed claims. The department may distribute any grain, money
14or other assets recovered by the department under sub. (7) or (8) to satisfy claims of
15producers or depositors allowed by the department under sub. (6). The department
16shall distribute recovered assets on a proportionate basis based on the amount of
17each allowed claim. If recovered assets exceed allowed claims, the department shall
18return the excess to the person who provided the assets.
AB230,39,2 19(10) Priority of producer claims in insolvency proceedings and other
20creditor's actions.
A producer's claim against a grain dealer for grain sold to that
21grain dealer is entitled to the same priority in a state insolvency proceeding or other
22creditor's action as is a claim for labor. This subsection does not affect or impair any
23other lien, security or priority held by the producer. Neither a final court judgment
24awarding a producer claim nor a department order allowing a claim under sub. (6)

1is a prerequisite to filing a producer claim in a state insolvency proceeding or other
2creditor's action or to the allowance of the priority under this subsection.
AB230, s. 71 3Section 71. 127.15 of the statutes is amended to read:
AB230,39,15 4127.15 Rule-making authority. The department may promulgate rules
5necessary for the efficient administration and enforcement of this chapter and for the
6regulation of grain marketing and warehousing practices. Rules may include, but
7are not limited to, minimum contract specifications, minimum requirements for
8warehouse receipts or requirements for uniform warehouse receipts, minimum
9requirements for scale tickets, settlements and other documents, minimum
10requirements for required records and accounts evidencing transactions in grain and
11specific prohibited trade practices
rules related to grain storage and sales contracts,
12grain storage receipts, records and accounts kept by warehouse keepers and grain
13dealers, security filed by warehouse keepers and grain dealers, disclosures to
14producers and depositors, grain storage and purchase practices and fees paid by
15warehouse keepers and grain dealers under ss. 127.02 and 127.03
.
AB230, s. 72 16Section 72. 127.16 of the statutes is amended to read:
AB230,39,19 17127.16 Administration. In the administration of the this chapter, the
18department shall have all the powers and authority vested in it the department
19under ch. 93.
AB230, s. 73 20Section 73. 127.17 (1) (intro.) of the statutes is renumbered 127.17 (1) (a)
21(intro.) and amended to read:
AB230,39,2522 127.17 (1) (a) (intro.) If the department determines that a warehouse keeper
23or grain dealer is not in compliance with a requirement of has violated this chapter
24or a rule promulgated under this chapter, the department may do any of the
25following
:
AB230, s. 74
1Section 74. 127.17 (1) (a) (title) of the statutes is repealed.
AB230, s. 75 2Section 75. 127.17 (1) (a) of the statutes is renumbered 127.17 (1) (a) 1. and
3amended to read:
AB230,40,84 127.17 (1) (a) 1. By special order, require compliance or require the person the
5warehouse keeper or grain dealer
to comply or to take specific steps deemed
6considered reasonably necessary to achieve compliance, including steps to remedy
7existing deficiencies, or to prevent the loss, damage or abnormal deterioration of
8grain, or otherwise ensure compliance.
AB230, s. 76 9Section 76. 127.17 (1) (b) of the statutes is created to read:
AB230,40,1810 127.17 (1) (b) A warehouse keeper or grain dealer named in a summary special
11order under par. (a) 2. may, within 10 days after receiving the order, request a hearing
12on the order. The department shall hold an informal hearing as soon as possible after
13receiving a hearing request but no later than 10 days after receiving the hearing
14request unless the warehouse keeper or grain dealer waives the informal hearing or
15agrees to a later date for the informal hearing. If the matter is not resolved at the
16informal hearing, the department shall hold a formal contested case hearing under
17ch. 227 on the order as soon as reasonably possible. A request for a hearing does not
18stay a summary special order pending the hearing.
AB230, s. 77 19Section 77. 127.17 (1) (b) 1. of the statutes is renumbered 127.17 (1) (a) 2. and
20amended to read:
AB230,40,2321 127.17 (1) (a) 2. If necessary to prevent clear and imminent harm to producers
22or depositors, issue a special order as provided in par. (a) under subd. 1. on a
23summary basis.
AB230, s. 78 24Section 78. 127.17 (1) (b) 2. and 3. of the statutes are repealed.
AB230, s. 79 25Section 79. 127.17 (2) (title), (a) and (b) of the statutes are amended to read:
AB230,41,2
1127.17 (2) (title) Denial, suspension or revocation of registration certificate
2license.
AB230,41,113 (a) Grounds; procedure for suspension or revocation. Violation of The
4department may deny, suspend or revoke a warehouse keeper's or grain dealer's
5license if the warehouse keeper or grain dealer violates
this chapter, or any rule
6adopted promulgated or special order issued under this chapter is grounds for denial,
7suspension or revocation of a certificate of registration
. The department may
8suspend or revoke the dealer's or warehouse keeper's certificate of registration either
9a license by special order under sub. (1) (a) 1. or, if necessary to prevent clear and
10imminent harm to producers or depositors, by a summary special order subject to the
11conditions specified
under sub. (1) (b) (a) 2. and 3.
AB230,41,1512 (b) (title) Suspension of grain dealer registration license. If a grain dealer's
13certificate of registration license is suspended, the grain dealer may not purchase or
14receive grain from producers and may or sell or ship grain, except under the
15supervision of the department.
AB230, s. 80 16Section 80. 127.17 (2) (c) (title) of the statutes is amended to read:
AB230,41,1717 127.17 (2) (c) (title) Revocation of a grain dealer registration license.
AB230, s. 81 18Section 81. 127.17 (2) (c) of the statutes is renumbered 127.17 (2) (c) 1. and
19amended to read:
AB230,41,2220 127.17 (2) (c) 1. If a grain dealer's certificate of registration license is revoked,
21the grain dealer may not purchase, receive, sell or ship grain except as the
22department permits by order.
AB230,42,2 232. If a grain dealer's certificate of registration license is revoked, the grain
24dealer shall notify every holder of a promptly give notice of that revocation to every

1producer with whom the grain dealer has an outstanding
deferred payment contract
2or deferred price contract and.
AB230,42,8 33. If a grain dealer's license is revoked, the department shall cause a notice to
4be published
publish notice of that revocation in a newspaper having general
5circulation in the county where the grain dealer's principal place of business is
6located and in the official state newspaper at least 2 times twice during the 2 weeks
7after revocation and shall cause a notice to be published in the official state
8newspaper at least 2 times during the 2 weeks after revocation
.
AB230,42,14 94. If a grain dealer's certificate of registration license is revoked, all
10outstanding deferred payment or contracts and deferred price contracts are
11terminated. A terminated deferred payment contract or deferred price contract
12becomes due and payable on the date of revocation. To the extent possible, the date
13of revocation shall be considered to be the date on which payment was to have been
14made under the contract giving equitable consideration to extenuating factors.
AB230, s. 82 15Section 82. 127.17 (2) (d) of the statutes is amended to read:
AB230,42,1916 127.17 (2) (d) (title) Suspension of a warehouse keeper's registration license. If
17a warehouse keeper's certificate of registration license is suspended, the warehouse
18keeper may not purchase or receive grain from depositors and may or sell or ship
19grain, except under the supervision of the department.
AB230, s. 83 20Section 83. 127.17 (2) (e) (title) of the statutes is amended to read:
AB230,42,2121 127.17 (2) (e) (title) Revocation of a warehouse keeper's registration license.
AB230, s. 84 22Section 84. 127.17 (2) (e) of the statutes is renumbered 127.17 (2) (e) 1. and
23amended to read:
AB230,43,3
1127.17 (2) (e) 1. If a warehouse keeper's certificate of registration license is
2revoked, the warehouse keeper may not purchase, receive, sell or ship grain except
3as the department permits by order.
AB230,43,6 42. If a warehouse keeper's certificate of registration license is revoked, the
5warehouse keeper shall promptly notify every depositor of that fact and the
6revocation.
AB230,43,12 73. If a warehouse keeper's license is revoked, the department shall cause a
8notice to be published
publish notice of the revocation in a newspaper having general
9circulation in the county where the warehouse is located and in the official state
10newspaper
at least 2 times twice during the 2 weeks after revocation and shall cause
11a notice to be published in the official state newspaper at least 2 times during the 2
12weeks after revocation
.
AB230, s. 85 13Section 85. 127.17 (3) of the statutes is amended to read:
AB230,43,1814 127.17 (3) Injunction. In addition to other penalties or remedies under this
15chapter, the department may petition any court of competent jurisdiction for a
16temporary or permanent injunction, including an ex parte temporary restraining
17order, to prevent, restrain or enjoin any person from violating this chapter or any rule
18promulgated or special order of issued by the department under this chapter.
AB230, s. 86 19Section 86. 127.17 (5) of the statutes is amended to read:
AB230,43,2420 127.17 (5) Private remedy. Any person who is injured as a result of a violation
21of this chapter, or any rules promulgated or special orders issued under this chapter,
22may bring an action against the violator and may recover twice the amount of the
23that person's proven damages, together with costs, including all reasonable attorney
24fees. This remedy is not exclusive.
AB230, s. 87 25Section 87. Effective date.
AB230,44,2
1(1) This act takes effect on September 1, 1995, or the day after publication,
2whichever is later.
AB230,44,33 (End)
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