126.06(1)(1) Department may acquire. Using moneys appropriated under s. 20.115 (1) (v), the department may acquire contingent financial backing to secure payment under s. 126.72 (2) of claims against contributing contractors, as defined in s. 126.68 (1). The contingent financial backing may be in one or more of the following forms: 126.06(1)(b)(b) A contract to provide a cash loan to the fund whenever the department requests a loan payable as provided in sub. (3). 126.06(1)(d)(d) Any other form that the department determines is appropriate. 126.06(2)(a)(a) Except as provided in par. (b), the department may determine the amount of any contingent financial backing that it obtains under sub. (1), up to the amount that, in the department’s judgment, is sufficient to meet reasonably foreseeable needs under s. 126.72 (2). In making this determination, the department shall consider acquisition costs and repayment liabilities. 126.06(2)(b)(b) The department may not acquire contingent financial backing in an amount that exceeds $17,000,000, unless the department establishes a different maximum amount by rule. 126.06(3)(3) Repayment. The department shall pay principal and interest costs of any loan provided under sub. (1) (b) only from the appropriation from the agricultural producer security fund under s. 20.115 (1) (wc). GRAIN DEALERS
Subch. III of ch. 126 Cross-referenceCross-reference: See also ch. ATCP 99, Wis. adm. code. 126.10126.10 Definitions. In this subchapter: 126.10(1)(1) “Cash on delivery” means full cash payment for grain when the grain dealer takes custody or control of the grain. 126.10(2)(2) “Cash payment” means payment in any of the following forms: 126.10(2)(b)(b) A cashier’s check or a check that a bank issues and certifies. 126.10(3)(3) “Contributing grain dealer” means a grain dealer who is licensed under s. 126.11, who either has paid one or more quarterly installments under s. 126.15 (7) or is required to contribute to the fund, but the first quarterly installment under s. 126.15 (7) is not yet due, and who is not disqualified from the fund under s. 126.14 (2). 126.10(4)(4) “Current ratio” means the ratio of the value of current assets to the value of current liabilities, calculated according to s. 126.13 (6) (c) 1. 126.10(5)(5) “Debt to equity ratio” means the ratio of the value of liabilities to equity, calculated according to s. 126.13 (6) (c) 2. 126.10(6)(6) “Deferred payment contract” means a contract for the procurement of grain under which a grain dealer takes custody or control of producer grain more than 7 days before paying for the grain in full. “Deferred payment contract” includes a deferred price contract. 126.10(7)(7) “Deferred price contract” means a contract for the procurement of grain under which a grain dealer takes custody or control of producer grain more than 7 days before the price of that grain must be determined under the contract. 126.10(8)(8) “Disqualified grain dealer” means a grain dealer who is disqualified from the fund under s. 126.14 (2). 126.10(9)(9) “Grain dealer” means a person who buys producer grain or who markets producer grain as a producer agent. “Grain dealer” does not include any of the following: 126.10(9)(a)(a) A person who merely brokers a contract between a grain producer and a grain dealer without becoming a party to the contract, taking control of grain, or accepting payment on behalf of the grain producer. 126.10(9)(b)(b) A person who merely buys or sells grain on a board of trade or commodity exchange. 126.10(10)(10) “Grain producer” means a person who grows grain. 126.10(10m)(10m) “License year” means the period beginning on September 1 and ending on the following August 31. 126.10(11)(11) “Procure grain” means to buy grain or acquire the right to market grain. 126.10(12)(12) “Procure producer grain in this state” means any of the following: 126.10(12)(a)(a) To buy producer grain for receipt in this state. 126.10(12)(b)(b) To acquire the right to market producer grain grown in this state. 126.10(13)(13) “Producer agent” means a person who acts on behalf of a grain producer to market or accept payment for the grain producer’s grain without taking title to that grain, including a person who uses a producer trust fund to market or accept payment for producer grain. “Producer agent” does not include any of the following: 126.10(13)(a)(a) A person who merely brokers a contract between a grain producer and a grain dealer, without becoming a party to the contract, taking control of grain, or accepting payment on behalf of the grain producer. 126.10(13)(b)(b) A person who merely holds or transports grain for a grain producer without marketing the grain or accepting payment on behalf of the grain producer. 126.10(14)(14) “Producer grain” means grain that is owned by or held in trust for one or more grain producers. “Producer grain” includes grain that a producer agent markets for a grain producer, without taking title to the grain. 126.10 HistoryHistory: 2001 a. 16. 126.11126.11 Grain dealers; licensing. 126.11(1)(1) License required. Except as provided in sub. (2), no grain dealer may procure producer grain in this state without a current annual license from the department. 126.11(2)(2) Exempt grain dealers. The following grain dealers are not required to hold a license under this section, but may volunteer to be licensed: 126.11(2)(a)(a) A grain dealer who pays cash on delivery for all producer grain. 126.11(2)(b)(b) A grain dealer who buys producer grain solely for the grain dealer’s own use as feed or seed and who spends less than $400,000 per license year for that grain. 126.11(2m)(2m) License terms. A license under this section expires on the August 31 following its issuance. No person may transfer or assign a license issued under this section. 126.11(3)(3) License application. A grain dealer shall apply for an annual license under this section in writing, on a form provided by the department. An applicant shall provide all of the following: 126.11(3)(a)(a) The applicant’s legal name and any trade name under which the applicant proposes to operate as a grain dealer. 126.11(3)(b)(b) A statement of whether the applicant is an individual, corporation, partnership, cooperative, unincorporated cooperative association, limited liability company, trust, or other legal entity. If the applicant is a corporation, a cooperative, or an association, the applicant shall identify each officer of the corporation or cooperative. If the applicant is a partnership, the applicant shall identify each partner. 126.11(3)(c)(c) The mailing address of the applicant’s primary business location and the name of a responsible individual who may be contacted at that location. 126.11(3)(d)(d) The street address of each business location from which the applicant operates in this state as a grain dealer and the name of a responsible individual who may be contacted at each location that is staffed. 126.11(3)(h)(h) Other relevant information required by the department. 126.11(4)(4) License fees and surcharges. A grain dealer applying for an annual license under this section shall pay the following fees and surcharges in the amounts that the department specifies by rule: 126.11(4)(b)(b) A supplementary license fee based on the volume of grain reported by the grain dealer under sub. (9) (d), less any credit provided under sub. (6). 126.11(4)(c)(c) A supplementary license fee for each truck, in excess of one truck, that the grain dealer uses to haul grain in this state. 126.11(4)(d)(d) A license surcharge if the grain dealer files a financial statement under s. 126.13 (1) that is not an audited financial statement. 126.11(4)(e)(e) A license surcharge if the department determines that, within 365 days before submitting the license application, the applicant operated as a grain dealer without a license in violation of sub. (1). The applicant shall also pay any license fees, license surcharges, and fund assessments that are still due for any license year in which the applicant violated sub. (1). 126.11(4)(f)(f) A license surcharge if during the preceding 12 months the applicant failed to file an annual financial statement required under s. 126.13 (1) (b) by the deadline specified in s. 126.13 (1) (c). 126.11(4)(g)(g) A license surcharge if a renewal applicant fails to renew a license by the license expiration date of August 31. This paragraph does not apply to a grain dealer who is exempt under sub. (2) and is voluntarily licensed. 126.11(4m)(4m) Effect of payment of surcharge. Payment under sub. (4) (e) does not relieve the applicant of any other civil or criminal liability that results from the violation of sub. (1), but does not constitute evidence of any law violation. 126.11(5)(5) License for part of year; fees. A person who applies for an annual grain dealer license after the beginning of a license year shall pay the full annual fee amounts required under sub. (4). 126.11(6)(6) Fee credits. If the combined balance in the fund contributed by grain dealers and grain warehouse keepers, as defined in s. 126.25 (9), exceeds $2,300,000 on May 31 of any license year, the department shall credit 50 percent of the excess amount against license fees charged under sub. (4) (b) to contributing grain dealers who file timely license renewal applications for the next license year. The department shall credit each contributing grain dealer on a prorated basis, in proportion to the total fees that the grain dealer paid under sub. (4) (b) for the 4 preceding license years as a contributing grain dealer. 126.11(7)(7) Fee statement. The department shall provide, with each license application form, a written statement of all license fees and surcharges required under sub. (4) or the formula for determining them. The department shall specify any fee credit for which the applicant may qualify under sub. (6). 126.11(8)(8) No license without full payment. The department may not issue an annual license under sub. (1) until the applicant pays all license fees and surcharges identified in the department’s statement under sub. (7). The department shall refund a fee or surcharge paid under protest if upon review the department determines that the fee or surcharge is not applicable. 126.11(9)(9) Applicant statement. As part of a license application under sub. (3), an applicant shall provide a statement, signed by the applicant or an officer of the applicant, that reports all of the following: 126.11(9)(a)(a) The total amount that the applicant paid, during the applicant’s last completed fiscal year, for producer grain procured in this state, less the total amount reported under par. (e) 3., if any. If the applicant has not yet operated as a grain dealer in this state, the applicant shall estimate the amount that the applicant will pay during the applicant’s first complete fiscal year for producer grain procured in this state, less the total amount reported under par. (e) 3., if any. 126.11(9)(b)(b) The amount of the payments under par. (a) made under deferred payment contracts. 126.11(9)(c)(c) Whether the applicant has had any obligations under deferred payment contracts, for grain procured in this state, at any time since the beginning of the applicant’s last completed fiscal year. 126.11(9)(d)(d) The total number of bushels of producer grain that the applicant procured in this state during the applicant’s last completed fiscal year. If the applicant has not yet operated as a grain dealer in this state, the applicant shall estimate the total number of bushels of producer grain that the applicant will procure in this state during the applicant’s first complete fiscal year. 126.11(9)(e)(e) All of the following information related to each grain producer or producer agent that under s. 126.70 (1) (b) has permanently waived eligibility to file a default claim against the applicant: 126.11(9)(e)2.2. The total number of bushels of producer grain that the applicant procured in this state from that grain producer or producer agent during the applicant’s last completed fiscal year. If the applicant has not yet operated as a grain dealer in this state, the applicant shall estimate the total number of bushels of producer grain that the applicant will procure in this state from that grain producer or producer agent during the applicant’s first complete fiscal year. 126.11(9)(e)3.3. The total amount that the applicant paid during the applicant’s last completed fiscal year for producer grain that the applicant procured in this state from that grain producer or producer agent. If the applicant has not yet operated as a grain dealer in this state, the applicant shall estimate the total amount that the applicant will pay during the applicant’s first complete fiscal year for producer grain that the applicant will procure in this state from that producer or producer agent. 126.11(9)(e)4.4. The amount of payments under subd. 3. made under deferred payment contracts. 126.11(10)(10) Action granting or denying application. The department shall grant or deny an application under sub. (3) within 30 days after the department receives a complete application. If the department denies a license application, the department shall give the applicant a written notice stating the reason for the denial. 126.11(11)(11) License displayed. A grain dealer licensed under sub. (1) shall prominently display a copy of that license at the following locations: 126.11(11)(a)(a) On each truck that the grain dealer uses to haul grain in this state. 126.11(11)(b)(b) At each business location from which the grain dealer operates in this state. 126.12126.12 Grain dealers; insurance. 126.12(1)(1) Fire and extended coverage insurance. A grain dealer licensed, or required to be licensed, under s. 126.11 shall maintain fire and extended coverage insurance, issued by an insurance company authorized to do business in this state, that covers all grain in the custody of the grain dealer, whether owned by the grain dealer or held for others, at the full local market value of the grain. 126.12(2)(2) Insurance cancellation; replacement. Whenever an insurance policy under sub. (1) is canceled, the grain dealer shall replace the policy so that there is no lapse in coverage. 126.12(3)(3) Insurance coverage; misrepresentation. No grain dealer may misrepresent any of the following to the department or to any grain producer or producer agent: 126.12(3)(b)(b) The nature, coverage, or material terms of the grain dealer’s insurance policy. 126.12 HistoryHistory: 2001 a. 16.
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Chs. 125-139, Regulation of Trade
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