AB717, s. 4 13Section 4. 126.06 (2) (intro.) (except 126.06 (2) (title)) of the statutes is
14repealed.
AB717, s. 5 15Section 5. 126.06 (2) (a) of the statutes is repealed and recreated to read:
AB717,6,2016 126.06 (2) (a) Except as provided in par. (b), the department may determine the
17amount of any contingent financial backing that it obtains under sub. (1), up to the
18amount that, in the department's judgment, is sufficient to meet reasonably
19foreseeable needs under s. 126.72 (2). In making this determination, the department
20shall consider acquisition costs and repayment liabilities.
AB717, s. 6 21Section 6. 126.08 of the statutes is repealed.
AB717, s. 7 22Section 7. 126.11 (4) (intro.) and (a) of the statutes are amended to read:
AB717,7,223 126.11 (4) License fees and surcharges. (intro.) A grain dealer applying for
24an annual license under this section shall pay the following fees and surcharges,

1unless
in the amounts that the department specifies a different fee or surcharge
2amount
by rule:
AB717,7,33 (a) A nonrefundable basic license processing fee of $25.
AB717, s. 8 4Section 8. 126.11 (4) (b) (intro.) of the statutes is renumbered 126.11 (4) (b) and
5amended to read:
AB717,7,86 126.11 (4) (b) The following license fees A supplementary license fee based on
7the volume of grain dealer's reported grain payments by the grain dealer under sub.
8(9) (a) (d), less any credit provided under sub. (6):.
AB717, s. 9 9Section 9. 126.11 (4) (b) 1. to 3. of the statutes are repealed.
AB717, s. 10 10Section 10. 126.11 (4) (c) to (g) of the statutes are amended to read:
AB717,7,1211 126.11 (4) (c) A supplementary license fee of $45 for each truck, in excess of one
12truck, that the grain dealer uses to haul grain in this state.
AB717,7,1413 (d) A license surcharge of $425 if the grain dealer files a financial statement
14under s. 126.13 (1) that is not an audited financial statement.
AB717,7,1915 (e) A license surcharge of $500 if the department determines that, within 365
16days before submitting the license application, the applicant operated as a grain
17dealer without a license in violation of sub. (1). The applicant shall also pay any
18license fees, license surcharges, and fund assessments that are still due for any
19license year in which the applicant violated sub. (1).
AB717,7,2220 (f) A license surcharge of $100 if during the preceding 12 months the applicant
21failed to file an annual financial statement required under s. 126.13 (1) (b) by the
22deadline specified in s. 126.13 (1) (c).
AB717,7,2523 (g) A license surcharge of $100 if a renewal applicant fails to renew a license
24by the license expiration date of August 31. This paragraph does not apply to a grain
25dealer who is exempt under sub. (2) and is voluntarily licensed.
AB717, s. 11
1Section 11. 126.11 (6) of the statutes is amended to read:
AB717,8,82 126.11 (6) Fee credits. If the balance in the fund contributed by grain dealers
3exceeds $2,000,000 on June 30 May 31 of any license year, the department shall
4credit 50% of the excess amount against license fees charged under sub. (4) (b) to
5contributing grain dealers who file timely license renewal applications for the next
6license year. The department shall credit each contributing grain dealer on a
7prorated basis, in proportion to the total fees that the grain dealer paid under sub.
8(4) (b) for the 4 preceding license years as a contributing grain dealer.
AB717, s. 12 9Section 12. 126.11 (9) (a) of the statutes is amended to read:
AB717,8,1510 126.11 (9) (a) The total amount that the applicant paid, during the applicant's
11last completed fiscal year, for producer grain procured in this state , less the total
12amount reported under par. (e) 3., if any
. If the applicant has not yet operated as a
13grain dealer in this state, the applicant shall estimate the amount that the applicant
14will pay during the applicant's first complete fiscal year for producer grain procured
15in this state, less the total amount reported under par. (e) 3., if any.
AB717, s. 13 16Section 13. 126.11 (9) (d) and (e) of the statutes are created to read:
AB717,8,2117 126.11 (9) (d) The total number of bushels of producer grain that the applicant
18procured in this state during the applicant's last completed fiscal year. If the
19applicant has not yet operated as a grain dealer in this state, the applicant shall
20estimate the total number of bushels of producer grain that the applicant will
21procure in this state during the applicant's first complete fiscal year.
AB717,8,2422 (e) All of the following information related to each grain producer or producer
23agent that under s. 126.70 (1) (b) has permanently waived eligibility to file a default
24claim against the applicant:
AB717,9,2
11. A copy of the written waiver that the grain producer or producer agent filed
2under s. 126.70 (1) (c).
AB717,9,83 2. The total number of bushels of producer grain that the applicant procured
4in this state from that grain producer or producer agent during the applicant's last
5completed fiscal year. If the applicant has not yet operated as a grain dealer in this
6state, the applicant shall estimate the total number of bushels of producer grain that
7the applicant will procure in this state from that grain producer or producer agent
8during the applicant's first complete fiscal year.
AB717,9,149 3. The total amount that the applicant paid during the applicant's last
10completed fiscal year for producer grain that the applicant procured in this state
11from that grain producer or producer agent. If the applicant has not yet operated as
12a grain dealer in this state, the applicant shall estimate the total amount that the
13applicant will pay during the applicant's first complete fiscal year for producer grain
14that the applicant will procure in this state from that producer or producer agent.
AB717,9,1615 4. The amount of payments under subd. 3. made under deferred payment
16contracts.
AB717, s. 14 17Section 14. 126.13 (1) (a) (intro.) of the statutes is amended to read:
AB717,9,2018 126.13 (1) (a) (intro.) A grain dealer shall file an annual financial statement
19with the department, before the department first licenses the grain dealer under s.
20126.11, if the grain dealer's license application reports shows any of the following:
AB717, s. 15 21Section 15. 126.13 (1) (a) 1. of the statutes is repealed and recreated to read:
AB717,9,2322 126.13 (1) (a) 1. That the amount of grain reported under s. 126.11 (9) (d), less
23the total amount reported under s. 126.11 (9) (e) 2., if any, exceeds 200,000 bushels.
AB717, s. 16 24Section 16. 126.13 (1) (b) (intro.) of the statutes is amended to read:
AB717,10,3
1126.13 (1) (b) (intro.) A grain dealer licensed under s. 126.11 shall file an
2annual financial statement with the department during each license year if the grain
3dealer's license application for that year reports shows any of the following:
AB717, s. 17 4Section 17. 126.13 (1) (b) 1. of the statutes is repealed and recreated to read:
AB717,10,85 126.13 (1) (b) 1. That the amount of grain reported under s. 126.11 (9) (d), less
6the total amount reported under s. 126.11 (9) (e) 2., if any, exceeds 200,000 bushels
7and the grain dealer is not a contributing grain dealer who procures grain in this
8state solely as a producer agent.
AB717, s. 18 9Section 18. 126.13 (3) of the statutes is repealed and recreated to read:
AB717,10,1510 126.13 (3) Reviewed or audited financial statement. A grain dealer filing a
11financial statement under sub. (1) or (2) may file either a reviewed financial
12statement or an audited financial statement, except that if the volume of grain
13reported by the grain dealer under s. 126.11 (9) (d), less the total volume reported by
14the grain dealer under s. 126.11 (9) (e) 2., if any, exceeds 2,500,000 bushels, the grain
15dealer shall file an audited financial statement.
AB717, s. 19 16Section 19. 126.14 (2) (b) (intro.) of the statutes is amended to read:
AB717,10,1817 126.14 (2) (b) (intro.) A grain dealer is disqualified from the fund, and required
18to pay cash on delivery for producer grain,
if any of the following occurs:
AB717, s. 20 19Section 20. 126.14 (2) (b) 2. of the statutes is amended to read:
AB717,10,2320 126.14 (2) (b) 2. The department issues a written notice an order under s.
21126.85
disqualifying the grain dealer for cause, including failure to pay fund
22assessments under s. 126.15 when due or failure to file a financial statement under
23s. 126.13 when due
from the fund.
AB717, s. 21 24Section 21. 126.14 (2) (b) 3. and 4. of the statutes are repealed.
AB717, s. 22 25Section 22. 126.14 (4) and (5) of the statutes are created to read:
AB717,11,5
1126.14 (4) Notice to producers. A grain dealer who is disqualified from the
2fund shall immediately give written notice of that disqualification to all grain
3producers and producer agents to whom the grain dealer has unpaid contract
4obligations for producer grain produced in this state. The department may by rule
5or order specify the form and content of the notice.
AB717,11,8 6(5) Disqualified grain dealer to pay cash on delivery. A grain dealer who is
7disqualified from the fund shall pay cash on delivery for all producer grain procured
8in this state.
AB717, s. 23 9Section 23. 126.15 (1) (c) of the statutes is amended to read:
AB717,11,1510 126.15 (1) (c) The grain dealer's deferred payment assessment. The deferred
11payment assessment for a license year equals the grain dealer's deferred payment
12assessment rate under sub. (6) multiplied by the
payment amount, if any, that the
13grain dealer reports under s. 126.11 (9) (b) in the grain dealer's license application
14for that license year, less any amount reported under s. 126.11 (9) (e) 4., multiplied
15by the grain dealer's deferred payment assessment rate under sub. (6)
.
AB717, s. 24 16Section 24. 126.15 (6) of the statutes is amended to read:
AB717,11,2017 126.15 (6) Deferred payment assessment rate. A grain dealer's deferred
18payment assessment rate is 0.0035, except that it is 0.002 for the grain dealer's 5th
19or higher consecutive full license year as a contributing grain dealer
unless the
20department specifies a different rate by rule
.
AB717, s. 25 21Section 25. 126.16 (1) (b) (intro.) and 2. of the statutes are consolidated,
22renumbered 126.16 (1) (b) and amended to read:
AB717,12,623 126.16 (1) (b) A grain dealer who reports any deferred payment contract
24obligations under s. 126.11 (9) (c) or 126.13 (1) (d), other than deferred payment
25contract obligations to a grain producer or producer agent who permanently waived

1eligibility to file a default claim under s. 126.70 (1) (b) and (c),
shall file security with
2the department, and maintain that security until the department releases it under
3sub. (8) (b), unless the grain dealer has positive equity and one of the following
4applies: 2. The
the grain dealer's annual financial statement under s. 126.13 covers
5a fiscal year ending after January 1, 2006, and
(1) shows a debt to equity ratio of not
6more than 4.0 to 1.0.
AB717, s. 26 7Section 26. 126.16 (1) (b) 1. of the statutes is repealed.
AB717, s. 27 8Section 27. 126.16 (1) (c) 2. (intro.) of the statutes is renumbered 126.16 (1)
9(c) 2. and amended to read:
AB717,12,1510 126.16 (1) (c) 2. A grain dealer shall file security with the department, and
11maintain that security until the department releases it under sub. (8) (bm), if the
12grain dealer files an annual financial statement under s. 126.13 (1) that shows
13negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more
14than 4.0 to 1.0 and the grain dealer's estimated default exposure is greater than the
15following amount:
$20,000,000.
AB717, s. 28 16Section 28. 126.16 (1) (c) 2. a. to c. of the statutes are repealed.
AB717, s. 29 17Section 29. 126.16 (2) of the statutes is repealed.
AB717, s. 30 18Section 30. 126.16 (3) (b) (intro.) and 3. of the statutes are consolidated,
19renumbered 126.16 (3) (b) and amended to read:
AB717,12,2320 126.16 (3) (b) A grain dealer who is only required to file or maintain security
21only under sub. (1) (c) shall at all times maintain security equal to the grain dealer's
22estimated default exposure, as defined in sub. (1) (c) 1., less the following amount:
233. For a license year that begins on September 1, 2005, or later,
$20,000,000.
AB717, s. 31 24Section 31. 126.16 (3) (b) 1. and 2. of the statutes are repealed.
AB717, s. 32 25Section 32. 126.16 (4) (e) of the statutes is repealed.
AB717, s. 33
1Section 33. 126.16 (8) (c) of the statutes is repealed.
AB717, s. 34 2Section 34. 126.17 (3) (a) (intro.) of the statutes is renumbered 126.17 (3) (a)
3and amended to read:
AB717,13,64 126.17 (3) (a) A grain dealer shall keep copies of all of the following records
5required under this section and s. 126.18 (2) for at least 6 years after the records are
6created:.
AB717, s. 35 7Section 35. 126.17 (3) (a) 1. and 2. of the statutes are repealed.
AB717, s. 36 8Section 36. 126.19 (4) of the statutes is renumbered 126.19 (4) (a) and
9amended to read:
AB717,13,1910 126.19 (4) (a) A grain dealer may not enter into a deferred payment contract
11with a grain producer or producer agent unless the deferred payment contract clearly
12discloses that it is not a storage contract. Whenever a grain dealer buys grain from
13a grain producer under a deferred payment contract, the grain dealer shall include

14includes the following statement in capitalized, boldface clear and conspicuous print
15immediately above the contract signature line: "This is not a storage contract. The
16grain dealer (buyer) becomes the owner of any grain that the producer or producer
17agent
(seller) delivers to the grain dealer under this contract. The producer or
18producer agent
relinquishes ownership and control of the grain, and becomes may
19become
an unsecured creditor pending payment."
AB717, s. 37 20Section 37. 126.19 (4) (b) of the statutes is created to read:
AB717,14,221 126.19 (4) (b) A grain dealer may not enter into a deferred payment contract
22under which a grain producer or producer agent agrees to receive payment for grain
23more than 120 days after delivering the grain to the grain dealer unless the deferred
24payment contract clearly and conspicuously discloses that if the grain dealer
25defaults on payment under the deferred payment contract, any claim filed by the

1producer or producer agent with the department under s. 126.70 will be disallowed.
2The department may by rule or order specify the form and content of the disclosure.
AB717, s. 38 3Section 38. 126.20 (4) (intro.) and (a) of the statutes are amended to read:
AB717,14,54 126.20 (4) Prohibited practices. (intro.) No grain dealer, or officer, employee,
5or agent of a grain dealer,
may do any of the following:
AB717,14,76 (a) Misrepresent the weight, grade, or quality of producer grain received from
7or delivered to any person.
AB717, s. 39 8Section 39. 126.20 (4) (g) of the statutes is created to read:
AB717,14,109 126.20 (4) (g) Assault, threaten, intimidate, or otherwise interfere with an
10officer, employee, or agent of the department in the performance of his or her duties.
AB717, s. 40 11Section 40. 126.26 (3) (intro.) and (a) of the statutes are amended to read:
AB717,14,1412 126.26 (3) License fees and surcharges. (intro.) A person applying for a grain
13warehouse keeper license shall pay the following fees and surcharges , unless in the
14amounts that
the department specifies a different fee or surcharge amount by rule:
AB717,14,2015 (a) A nonrefundable basic license processing fee of $25 plus $25 for each grain
16warehouse identified under sub. (2) (d). If a grain warehouse keeper operates 2 or
17more grain warehouses located within 0.5 mile of each other, the grain warehouse
18keeper may treat those grain warehouses as a single grain warehouse for purposes
19of this paragraph and par. (c)
fee, which may be based on the number of grain
20warehouses that the applicant operates
.
AB717, s. 41 21Section 41. 126.26 (3) (b) of the statutes is repealed and recreated to read:
AB717,14,2322 126.26 (3) (b) A grain warehouse inspection fee, which may be based on the
23number and sizes of the grain warehouses that the applicant operates.
AB717, s. 42 24Section 42. 126.26 (3) (c) to (f) of the statutes are amended to read:
AB717,15,2
1126.26 (3) (c) A supplementary inspection fee of $275 for each grain warehouse
2that the applicant operates in excess of one grain warehouse.
AB717,15,73 (d) A license surcharge of $500 if the department determines that, within 365
4days before submitting the license application, the applicant operated as a grain
5warehouse keeper without a license in violation of sub. (1). The applicant shall also
6pay any license fees, license surcharges, and fund assessments that are still due for
7the license year in which the applicant violated sub. (1).
AB717,15,108 (e) A license surcharge of $100 if during the preceding 12 months the applicant
9failed to file an annual financial statement required under s. 126.28 (1) (b) by the
10applicable deadline.
AB717,15,1211 (f) A license surcharge of $100 if a renewal applicant fails to renew a license
12by the license expiration date of August 31.
AB717, s. 43 13Section 43. 126.26 (3m) of the statutes is amended to read:
AB717,15,1714 126.26 (3m) Effect of payment of surcharge. Payment of a license surcharge
15under sub. (3) (d) does not relieve the applicant of any other civil or criminal liability
16that results from the violation of sub. (1), but does not constitute evidence of any law
17violation.
AB717, s. 44 18Section 44. 126.26 (5) of the statutes is amended to read:
AB717,16,219 126.26 (5) Fee credit. If the fund balance contributed by grain warehouse
20keepers exceeds $300,000 on June 30 May 31 of any license year, the department
21shall credit 12.5% of the excess amount against grain warehouse inspection fees
22charged under sub. (3) (b) to contributing grain warehouse keepers who file timely
23license renewal applications for the next license year. The department shall credit
24each contributing grain warehouse keeper on a prorated basis, in proportion to the

1total inspection fees that the warehouse keeper has paid under sub. (3) (b) for the 4
2preceding license years.
AB717, s. 45 3Section 45. 126.28 (3) of the statutes is repealed and recreated to read:
AB717,16,94 126.28 (3) Reviewed or audited financial statement. A grain warehouse
5keeper filing a financial statement under sub. (1) or (2) may file either a reviewed
6financial statement or an audited financial statement, except that if the grain
7warehouse keeper operates grain warehouses with a combined capacity of more than
81,500,000 bushels, the grain warehouse keeper shall file an audited financial
9statement.
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