AB230: Bill Text

AB230, s. 63 Section 63. 127.105 of the statutes is amended to read:

AB230,33,18 127.105 Liability of warehouse keepers and grain dealers. (1) A warehouse keeper or grain dealer is liable to a producer or depositor if a subsidiary or affiliate of the warehouse keeper or grain dealer fails to pay the producer in full, in cash and according to the terms of the contract between the subsidiary or affiliate and the producer, amounts owed to the producer by the subsidiary or affiliate when due, or fails to return stored grain to the depositor upon demand, according to a contract for the storage, purchase or sale of grain.

AB230,33,25 (2) Any corporation or cooperative that owns, controls or acts as a warehouse keeper or grain dealer is liable to a producer or depositor if the warehouse keeper or grain dealer fails to pay in full, in cash and according to the terms of the contract between the warehouse keeper or grain dealer and the producer, amounts owed to the producer by the warehouse keeper or grain dealer the producer when due, or fails to return stored grain to the depositor upon demand, according to a contract for the storage, purchase or sale of grain.

AB230,34,6 (3) The department may commence an action in the circuit court for the county in which the warehouse keeper or grain dealer is located to enforce this section on behalf of producers or depositors to obtain payment of amounts owed under this section. The department may settle any claim of a producer or depositor under this section with the consent of the claimant and may decline to represent a claimant who does not agree to a settlement recommended by the department.

AB230, s. 64 Section 64. 127.11 (2) of the statutes is amended to read:

AB230,34,12 127.11 (2) False or misleading statement. No warehouse keeper or grain dealer may make any false or misleading statement in any application for a certificate of registration license or in any other statement or report that the warehouse keeper or grain dealer is required to be submitted submit to the department under this chapter.

AB230, s. 65 Section 65. 127.12 (2) of the statutes is amended to read:

AB230,34,22 127.12 (2) A grain dealer may, prior to purchasing grain from, or selling grain for, a producer or depositor, require as a condition to the purchase or sale that the buying grain from or selling grain for a producer or depositor require the producer to provide the grain dealer with a written statement which specifies the existence, nature and amount of that discloses any liens or security interests in the grain, the nature and amount of those liens or security interests and the identity of any lien or security interest holders. No producer or depositor may falsify any information provided to a grain dealer under this subsection, or fraudulently withhold information to obtain a sale of grain.

AB230, s. 66 Section 66. 127.13 (title) of the statutes is repealed and recreated to read:

AB230,34,24 127.13 (title) Inspection and investigation.

AB230, s. 67 Section 67. 127.13 (1) of the statutes is renumbered 127.13 (1) (a) and amended to read:

AB230,35,10 127.13 (1) (a) The department may investigate or inspect the operations of a warehouse keeper or grain dealer's operation at any time deemed necessary to determine qualifications for a certificate of registration, dealer to determine whether the warehouse keeper or grain dealer is in compliance with this chapter or rules promulgated under this chapter, the sufficiency of whether a warehouse keeper has sufficient grain on hand to meet obligations to depositors or the ability of the whether a grain dealer or warehouse keeper to make payment is able to pay for grain when payment is due.

AB230,35,14 (b) In connection with an investigation or inspection under par. (a), the department may require a grain dealer or warehouse keeper to file a sworn or audited statement of business operations and financial position, including a current daily position statement.

AB230, s. 68 Section 68. 127.13 (1) (c) of the statutes is created to read:

AB230,35,19 127.13 (1) (c) A warehouse keeper or grain dealer shall make available to the department, upon demand, documents and records that the warehouse keeper or grain dealer is required to keep under this chapter or rules promulgated under this chapter so that the department may inspect or copy the documents and records.

AB230, s. 69 Section 69. 127.13 (2) and (3) of the statutes are amended to read:

AB230,35,23 127.13 (2) Annual inspection of warehouses. The department shall annually inspect each warehouse in this state operated by a licensed warehouse keeper annually and may inspect such a warehouse at other times.

AB230,35,25 (3) (title) Periodic review of Class A grain dealers' records. The department shall periodically review the records of each Class A grain dealer in this state.

AB230, s. 70 Section 70. 127.14 of the statutes is repealed and recreated to read:

AB230,36,4 127.14 Claims by producers and depositors; default proceedings and payment of claims. (1) Filing claims. Any of the following may file a written claim with the department under this section:

AB230,36,6 (a) A producer who claims that a grain dealer has failed to pay the producer for grain when due.

AB230,36,8 (b) A depositor who claims that a warehouse keeper has failed to return stored grain upon demand.

AB230,36,16 (2) Initiating default proceedings. Upon receiving a written claim under sub. (1), or upon receiving other evidence that a warehouse keeper or grain dealer has defaulted on obligations to producers or depositors, the department may initiate a default proceeding under this section. To initiate a default proceeding, the department shall issue an order requiring all interested producers or depositors to file verified proofs of claim with the department before a specified date or be barred from participating in any recovery made by the department. The department shall publish notice of the order in all of the following ways:

AB230,36,19 (a) By posting a copy of the order in a prominent location at each place of business in this state operated by the warehouse keeper or grain dealer and on each truck operated by the warehouse keeper or grain dealer that can be readily located.

AB230,36,21 (b) By mailing a copy of the order to the warehouse keeper or grain dealer and to the warehouse keeper's or grain dealer's surety, if any.

AB230,36,24 (c) By publishing the contents of the order as a class 3 notice under ch. 985, with the last insertion of the notice not later than 30 days before the deadline for filing claims.

AB230,37,3 (d) By mailing a copy of the order, or equivalent notice, to those producers or depositors who are identified by the department and who appear to have unpaid claims against the warehouse keeper or grain dealer.

AB230,37,9 (3) Audit; proposed order. If the department initiates a default proceeding under this section, the department shall audit producer or depositor claims filed with the department and shall issue a proposed order allowing or disallowing claims. The department shall mail a copy of the proposed order to the warehouse keeper or grain dealer, to the warehouse keeper's or grain dealer's surety, if any, and to each producer or depositor who filed a timely claim in the proceeding.

AB230,37,12 (4) Untimely claims disallowed. (a) The department shall disallow a claim of a producer or depositor filed after the claim filing deadline specified under sub. (2) unless the department waives the claim filing deadline for good cause shown.

AB230,37,15 (b) The department shall disallow a claim for any payment that was due more than 60 days before the date on which the department first received a written claim under sub. (1).

AB230,37,19 (5) Notice and hearing. The department shall hold a public hearing on its proposed order under sub. (3). The department shall provide a notice of the hearing to each person to whom the department is required to provide a copy of its proposed order under sub. (3).

AB230,37,25 (6) Final order after hearing. (a) Before issuing a final decision and order in a default proceeding under this section, the department shall follow the procedures in s. 227.46, except that if after the hearing under sub. (5) there are no objections to the department's proposed order, the department may adopt the proposed order as the department's final decision and order without further notice or hearing.

AB230,38,3 (b) The department shall serve its final decision and order on each person to whom the department is required to provide a copy of its proposed order under sub. (3).

AB230,38,7 (7) Converting security to pay allowed claims. For the purpose of paying claims allowed under sub. (6), the department may convert any security that a warehouse keeper or grain dealer filed with the department and may apply the proceeds to pay the allowed claims.

AB230,38,12 (8) Obtaining payment of allowed claims. The department may demand and receive payment of claims allowed under sub. (6) on behalf of producers or depositors and may commence an action in court to recover those claims. The department may demand and receive grain, money or other assets in order to satisfy claims of producers or depositors.

AB230,38,18 (9) Paying allowed claims. The department may distribute any grain, money or other assets recovered by the department under sub. (7) or (8) to satisfy claims of producers or depositors allowed by the department under sub. (6). The department shall distribute recovered assets on a proportionate basis based on the amount of each allowed claim. If recovered assets exceed allowed claims, the department shall return the excess to the person who provided the assets.

AB230,39,2 (10) Priority of producer claims in insolvency proceedings and other creditor's actions. A producer's claim against a grain dealer for grain sold to that grain dealer is entitled to the same priority in a state insolvency proceeding or other creditor's action as is a claim for labor. This subsection does not affect or impair any other lien, security or priority held by the producer. Neither a final court judgment awarding a producer claim nor a department order allowing a claim under sub. (6) is a prerequisite to filing a producer claim in a state insolvency proceeding or other creditor's action or to the allowance of the priority under this subsection.

AB230, s. 71 Section 71. 127.15 of the statutes is amended to read:

AB230,39,15 127.15 Rule-making authority. The department may promulgate rules necessary for the efficient administration and enforcement of this chapter and for the regulation of grain marketing and warehousing practices. Rules may include, but are not limited to, minimum contract specifications, minimum requirements for warehouse receipts or requirements for uniform warehouse receipts, minimum requirements for scale tickets, settlements and other documents, minimum requirements for required records and accounts evidencing transactions in grain and specific prohibited trade practices rules related to grain storage and sales contracts, grain storage receipts, records and accounts kept by warehouse keepers and grain dealers, security filed by warehouse keepers and grain dealers, disclosures to producers and depositors, grain storage and purchase practices and fees paid by warehouse keepers and grain dealers under ss. 127.02 and 127.03.

AB230, s. 72 Section 72. 127.16 of the statutes is amended to read:

AB230,39,19 127.16 Administration. In the administration of the this chapter, the department shall have all the powers and authority vested in it the department under ch. 93.

AB230, s. 73 Section 73. 127.17 (1) (intro.) of the statutes is renumbered 127.17 (1) (a) (intro.) and amended to read:

AB230,39,25 127.17 (1) (a) (intro.) If the department determines that a warehouse keeper or grain dealer is not in compliance with a requirement of has violated this chapter or a rule promulgated under this chapter, the department may do any of the following:

AB230, s. 74 Section 74. 127.17 (1) (a) (title) of the statutes is repealed.

AB230, s. 75 Section 75. 127.17 (1) (a) of the statutes is renumbered 127.17 (1) (a) 1. and amended to read:

AB230,40,8 127.17 (1) (a) 1. By special order, require compliance or require the person the warehouse keeper or grain dealer to comply or to take specific steps deemed considered reasonably necessary to achieve compliance, including steps to remedy existing deficiencies, or to prevent the loss, damage or abnormal deterioration of grain, or otherwise ensure compliance.

AB230, s. 76 Section 76. 127.17 (1) (b) of the statutes is created to read:

AB230,40,18 127.17 (1) (b) A warehouse keeper or grain dealer named in a summary special order under par. (a) 2. may, within 10 days after receiving the order, request a hearing on the order. The department shall hold an informal hearing as soon as possible after receiving a hearing request but no later than 10 days after receiving the hearing request unless the warehouse keeper or grain dealer waives the informal hearing or agrees to a later date for the informal hearing. If the matter is not resolved at the informal hearing, the department shall hold a formal contested case hearing under ch. 227 on the order as soon as reasonably possible. A request for a hearing does not stay a summary special order pending the hearing.

AB230, s. 77 Section 77. 127.17 (1) (b) 1. of the statutes is renumbered 127.17 (1) (a) 2. and amended to read:

AB230,40,23 127.17 (1) (a) 2. If necessary to prevent clear and imminent harm to producers or depositors, issue a special order as provided in par. (a) under subd. 1. on a summary basis.

AB230, s. 78 Section 78. 127.17 (1) (b) 2. and 3. of the statutes are repealed.

AB230, s. 79 Section 79. 127.17 (2) (title), (a) and (b) of the statutes are amended to read:

AB230,41,2 127.17 (2) (title) Denial, suspension or revocation of registration certificate license.

AB230,41,11 (a) Grounds; procedure for suspension or revocation. Violation of The department may deny, suspend or revoke a warehouse keeper's or grain dealer's license if the warehouse keeper or grain dealer violates this chapter, or any rule adopted promulgated or special order issued under this chapter is grounds for denial, suspension or revocation of a certificate of registration. The department may suspend or revoke the dealer's or warehouse keeper's certificate of registration either a license by special order under sub. (1) (a) 1. or, if necessary to prevent clear and imminent harm to producers or depositors, by a summary special order subject to the conditions specified under sub. (1) (b) (a) 2. and 3.

AB230,41,15 (b) (title) Suspension of grain dealer registration license. If a grain dealer's certificate of registration license is suspended, the grain dealer may not purchase or receive grain from producers and may or sell or ship grain, except under the supervision of the department.

AB230, s. 80 Section 80. 127.17 (2) (c) (title) of the statutes is amended to read:

AB230,41,17 127.17 (2) (c) (title) Revocation of a grain dealer registration license.

AB230, s. 81 Section 81. 127.17 (2) (c) of the statutes is renumbered 127.17 (2) (c) 1. and amended to read:

AB230,41,22 127.17 (2) (c) 1. If a grain dealer's certificate of registration license is revoked, the grain dealer may not purchase, receive, sell or ship grain except as the department permits by order.

AB230,42,2 2. If a grain dealer's certificate of registration license is revoked, the grain dealer shall notify every holder of a promptly give notice of that revocation to every producer with whom the grain dealer has an outstanding deferred payment contract or deferred price contract and.

AB230,42,8 3. If a grain dealer's license is revoked, the department shall cause a notice to be published publish notice of that revocation in a newspaper having general circulation in the county where the grain dealer's principal place of business is located and in the official state newspaper at least 2 times twice during the 2 weeks after revocation and shall cause a notice to be published in the official state newspaper at least 2 times during the 2 weeks after revocation.

AB230,42,14 4. If a grain dealer's certificate of registration license is revoked, all outstanding deferred payment or contracts and deferred price contracts are terminated. A terminated deferred payment contract or deferred price contract becomes due and payable on the date of revocation. To the extent possible, the date of revocation shall be considered to be the date on which payment was to have been made under the contract giving equitable consideration to extenuating factors.

AB230, s. 82 Section 82. 127.17 (2) (d) of the statutes is amended to read:

AB230,42,19 127.17 (2) (d) (title) Suspension of a warehouse keeper's registration license. If a warehouse keeper's certificate of registration license is suspended, the warehouse keeper may not purchase or receive grain from depositors and may or sell or ship grain, except under the supervision of the department.

AB230, s. 83 Section 83. 127.17 (2) (e) (title) of the statutes is amended to read:

AB230,42,21 127.17 (2) (e) (title) Revocation of a warehouse keeper's registration license.

AB230, s. 84 Section 84. 127.17 (2) (e) of the statutes is renumbered 127.17 (2) (e) 1. and amended to read:

AB230,43,3 127.17 (2) (e) 1. If a warehouse keeper's certificate of registration license is revoked, the warehouse keeper may not purchase, receive, sell or ship grain except as the department permits by order.

AB230,43,6 2. If a warehouse keeper's certificate of registration license is revoked, the warehouse keeper shall promptly notify every depositor of that fact and the revocation.

AB230,43,12 3. If a warehouse keeper's license is revoked, the department shall cause a notice to be published publish notice of the revocation in a newspaper having general circulation in the county where the warehouse is located and in the official state newspaper at least 2 times twice during the 2 weeks after revocation and shall cause a notice to be published in the official state newspaper at least 2 times during the 2 weeks after revocation.

AB230, s. 85 Section 85. 127.17 (3) of the statutes is amended to read:

AB230,43,18 127.17 (3) Injunction. In addition to other penalties or remedies under this chapter, the department may petition any court of competent jurisdiction for a temporary or permanent injunction, including an ex parte temporary restraining order, to prevent, restrain or enjoin any person from violating this chapter or any rule promulgated or special order of issued by the department under this chapter.

AB230, s. 86 Section 86. 127.17 (5) of the statutes is amended to read:

AB230,43,24 127.17 (5) Private remedy. Any person who is injured as a result of a violation of this chapter, or any rules promulgated or special orders issued under this chapter, may bring an action against the violator and may recover twice the amount of the that person's proven damages, together with costs, including all reasonable attorney fees. This remedy is not exclusive.

AB230, s. 87 Section 87. Effective date.

AB230,44,2 (1)  This act takes effect on September 1, 1995, or the day after publication, whichever is later.

AB230,44,3 (End)