Chapter ATCP 99

ATCP 99.23   Grain warehouse keepers; license fees and surcharges.

ATCP 99.235   Contributing grain warehouse keepers; fund assessments.

ATCP 99.24   Grain warehouse keeper; financial statement.

ATCP 99.25   Fund assessment temporarily affected by merger or acquisition; partial refund.

ATCP 99.255   Reduced fund assessment for contributing grain warehouse keepers who also maintain security.

ATCP 99.26   Grain warehouse keeper; disclosure to depositors.

ATCP 99.27   Warehouse keepers; daily position record.

ATCP 99.28   Grain storage receipts.

Ch. ATCP 99 Note Note: Chapter ATCP 99 as it existed on April 30, 2003 was repealed and a new ch. ATCP 99 was created effective May 1, 2003.

Ch. ATCP 99 Note Note: This chapter is adopted under authority of ss. 93.07 (1), 126.49, 126.51 and 126.81, Stats., and interprets ch. 126, Stats. The Wisconsin department of agriculture, trade and consumer protection may enforce this chapter under subch. VIII of ch. 126, Stats.

subch. I of ch. ATCP 99 Subchapter I — General Provisions

ATCP 99.01 ATCP 99.01 Definitions. In this chapter:

ATCP 99.01(1) (1) “Affiliate” has the meaning given in s. 126.01 (1), Stats. “Affiliate” includes a person who has significant control or influence over the contractor.

ATCP 99.01(2) (2) “Audited financial statement” has the meaning given in s. 126.01 (3), Stats.

ATCP 99.01(3) (3) “Balance sheet” has the meaning given in s. 126.01 (4), Stats.

ATCP 99.01(4) (4) “Capacity” has the meaning given in s. 126.25 (1), Stats.

ATCP 99.01(4m) (4m) “Contingent financial backing amount” means the amount of contingent financial backing, if any, which the department holds under s. 126.06, Stats.

ATCP 99.01(5) (5) “Contributing grain dealer” has the meaning given in s. 126.10 (3), Stats.

ATCP 99.01(6) (6) “Contributing grain warehouse keeper” has the meaning given in s. 126.25 (2), Stats.

ATCP 99.01(7) (7) “Deferred payment contract” has the meaning given in s. 126.10 (6), Stats.

ATCP 99.01(8) (8) “Depositor” has the meaning given in s. 126.25 (5), Stats.

ATCP 99.01(8m) (8m) “Estimated default exposure” has the meaning given in s. 126.16 (1) (c) 1., Stats., for a grain dealer, and in s. 126.31 (1) (b) 1., Stats., for a grain warehouse keeper.

ATCP 99.01(9) (9) “Fund” has the meaning given in s. 126.01 (11), Stats.

ATCP 99.01(10) (10) “Grain” has the meaning given in s. 126.01 (13), Stats.

ATCP 99.01(11) (11) “Grain dealer” has the meaning given in s. 126.10 (9), Stats.

ATCP 99.01(12) (12) “Grain producer” has the meaning given in s. 126.10 (10), Stats.

ATCP 99.01(13) (13) “Grain warehouse” has the meaning given in s. 126.25 (8), Stats.

ATCP 99.01(14) (14) “Grain warehouse keeper” has the meaning given in s. 126.25 (9), Stats.

ATCP 99.01(14m) (14m) “Maximum fund reimbursement” means the deductible amount specified in s. 126.72, Stats.

ATCP 99.01(15) (15) “Producer agent” has the meaning given in s. 126.10 (13), Stats.

ATCP 99.01(16) (16) “Procure grain” has the meaning given in s. 126.10 (11), Stats.

ATCP 99.01(17) (17) “Procure producer grain in this state” has the meaning given in s. 126.10 (12), Stats.

ATCP 99.01(18) (18) “Producer grain” has the meaning given in s. 126.10 (14), Stats. “Producer grain” does not include grain that a producer has purchased from another person, or represents as grain purchased from another person.

ATCP 99.01(19) (19) “Reviewed financial statement” has the meaning given in s. 126.01 (20), Stats.

ATCP 99.01(20) (20) “Warehouse receipt” has the meaning given in s. 126.25 (11), Stats.

ATCP 99.01 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; CR 05-068: am. (1), cr. (4m), (6m), (8m) and (14m) Register April 2006 No. 604, eff. 5-1-06; CR 07-073: r. (6m), am. (14m) Register December 2008 No. 636, eff. 1-1-09.

subch. II of ch. ATCP 99 Subchapter II — Grain Dealers

ATCP 99.10 ATCP 99.10 General requirements. A grain dealer shall comply with applicable requirements in ch. 126, Stats.

ATCP 99.10 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

ATCP 99.11 ATCP 99.11 Grain dealer; annual report of grain purchases. A grain dealer applying for an annual license under s. 126.11, Stats., shall include in the sworn and notarized statement under s. 126.11 (9), Stats., the total number of bushels of producer grain, procured in this state, for which the grain dealer paid during the grain dealer’s most recently completed fiscal year. If a license applicant has not yet operated as a grain dealer, the statement shall estimate the total number of bushels of producer grain, procured in this state, for which the applicant will pay during the applicant’s first full fiscal year of operation as a grain dealer.

ATCP 99.11 History History: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09.

ATCP 99.12 ATCP 99.12 Grain dealer; financial statement.

ATCP 99.12(1) (1) General. A grain dealer’s financial statement filed under s. 126.13, Stats., shall comply with this section and s. 126.13, Stats.

ATCP 99.12(2) (2) Liability disclosures. A financial statement filed under s. 126.13, Stats., shall include a detailed description of all notes, mortgages and other long-term liabilities not due or payable within one year. The description shall be included in the financial statement notes, or as an attachment to the financial statement. The description shall indicate the nature of the liabilities, the due dates and the payment terms.

ATCP 99.12(3) (3) Liability classification. A financial statement filed under s. 126.13, Stats., shall classify, as current liabilities, notes payable that do not have specific due dates.

ATCP 99.12(4) (4) Asset disclosures.

ATCP 99.12(4)(a) (a) A financial statement filed under s. 126.13, Stats., shall specifically identify and explain, in the financial statement notes or as an attachment to the financial statement, the following assets:

ATCP 99.12(4)(a)1. 1. Every non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.

ATCP 99.12(4)(a)2. 2. Every note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

ATCP 99.12 Note Note: “Affiliate” as defined in s. 99.01 (1) means a person who has significant control or influence. Significant control or influence is a phrase used under generally accepted accounting principals to describe a related party that has sufficient ownership interest to influence the operating and financial policies of an entity.

ATCP 99.12(4)(a)3. 3. Every note or account that has been receivable for more than one year, unless the grain dealer has established an offsetting reserve for uncollectible notes and accounts receivable.

ATCP 99.12(4)(b) (b) A financial statement filed under s. 126.13, Stats., shall include at least one of the following:

ATCP 99.12(4)(b)1. 1. An allowance for doubtful or uncollectible receivables. The notes to the financial statement shall describe the method used to account for doubtful or uncollectible receivables.

ATCP 99.12(4)(b)2. 2. A summary classifying the age of all notes and accounts receivable.

ATCP 99.12(5) (5) Grain payment information. A grain dealer shall provide the following information in an attachment to every financial statement filed under s. 126.13, Stats.:

ATCP 99.12(5)(a) (a) The total amount that the grain dealer paid during the grain dealer’s last completed fiscal year, and during each month of that fiscal year, for producer grain procured in this state.

ATCP 99.12(5)(b) (b) The total amount that the grain dealer paid during the grain dealer’s last completed fiscal year, and during each month of that fiscal year, for producer grain procured in this state using deferred payment contracts.

ATCP 99.12(5)(c) (c) The total number of bushels of producer grain, procured in this state, for which the grain dealer paid during each of the following periods:

ATCP 99.12(5)(c)1. 1. The grain dealer’s most recently completed fiscal year.

ATCP 99.12(5)(c)2. 2. Each month of the grain dealer’s most recently completed fiscal year.

ATCP 99.12(6) (6) Debt to equity ratio; liability adjustments.

ATCP 99.12(6)(a) (a) Solely for the purpose of calculating the debt to equity ratio under s. 126.13 (6) (c) 2., Stats., a grain dealer may deduct liabilities identified in par. (b) from liabilities reported in the grain dealer’s financial statement filed under s. 126.13, Stats., if all the following apply:

ATCP 99.12(6)(a)1. 1. The individual liability adjustments and offsetting assets are disclosed in the financial statement notes or in an attachment to the financial statement.

ATCP 99.12(6)(a)2. 2. No individual liability adjustment exceeds the corresponding asset, identified in a note or attachment to the financial statement, that justifies that liability adjustment.

ATCP 99.12(6)(a)3. 3. Liability adjustments and offsetting assets are determined as of the date of the balance sheet.

ATCP 99.12(6)(b) (b) A grain dealer may deduct the following liabilities under par. (a):

ATCP 99.12(6)(b)1. 1. An amount that the grain dealer has borrowed from a lending institution and deposited with a commodities broker to maintain an account to hedge grain transactions. The amount deducted may not exceed the amount owed to the lending institution or the amount deposited in the hedge account with the commodities broker, whichever is less.

ATCP 99.12(6)(b)2. 2. An amount that the grain dealer has borrowed from a lending institution to buy grain that the grain dealer has sold and shipped, provided that the grain dealer has a collectible account receivable for that grain on the date of the balance sheet. The amount of the deduction may not exceed the amount receivable by the grain dealer or the amount owed to the lending institution, whichever is less.

ATCP 99.12(6)(b)3. 3. An amount, borrowed from a lending institution, that is secured by grain that the grain dealer owns, holds in inventory on the balance sheet date, and shows as inventory on the balance sheet. The amount deducted may not exceed the amount owed to the lending institution or the value of the grain dealer’s grain given as security and held in inventory, whichever is less.

ATCP 99.12(6)(b)4. 4. An amount, borrowed from a lending institution, that the grain dealer has used to pay for fertilizer, pesticides, herbicides or seed that the grain dealer owns, holds in inventory on the balance sheet date, and shows as inventory on the balance sheet. The amount deducted may not exceed the amount owed to the lending institution or the cost of the fertilizer, pesticides, herbicides and seed purchased with the borrowed funds, whichever is less.

ATCP 99.12(7) (7) Attachments. If information required under this section is contained in an attachment to a reviewed or audited financial statement filed under s. 126.13, Stats., the following requirements apply:

ATCP 99.12(7)(a) (a) The attachment shall be on the letterhead of the certified public accountant who reviewed or audited the financial statement.

ATCP 99.12(7)(b) (b) The certified public accountant who reviewed or audited the financial statement shall certify, in the attachment, whether the certified public accountant has reviewed or audited the attachment.

ATCP 99.12 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; CR 07-073: cr. (5) (c) Register December 2008 No. 636, eff. 1-1-09.

ATCP 99.125 ATCP 99.125 Grain dealers; license fees and surcharges. A person applying for an annual grain dealer license under s. 126.11, Stats., shall pay all of the following license fees and surcharges, rather than the license fees and surcharges provided in s. 126.11 (4), Stats.:

ATCP 99.125(1) (1) A nonrefundable license processing fee of $25.

ATCP 99.125(2) (2) A fee obtained by multiplying the number of bushels reported under s. ATCP 99.11 by 0.1 cent per bushel, and rounding the product to the nearest $100, except that the fee may not be less than $100 or more than $10,000.

ATCP 99.125(3) (3) A fee of $100 per business location in excess of one business location.

ATCP 99.125(4) (4) A surcharge of $500 if, within 365 days before submitting the license application, the applicant operated as a grain dealer without a license in violation of s. 126.11 (1), Stats. 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 s. 126.11 (1), Stats.

ATCP 99.125(5) (5) A surcharge of $100 if, within 365 days before submitting the license application, the applicant failed to file an annual financial statement required under s. 126.13 (1) (b), Stats., by the deadline specified in s. 126.13 (1) (c), Stats.

ATCP 99.125(6) (6) A surcharge of $100 if the applicant was licensed as a grain dealer for the last preceding license year but failed to file a license renewal application before the annual license expiration date of August 31. This subsection does not apply to a grain dealer who is exempt from licensing under s. 126.11 (2), Stats., but is voluntarily licensed.

ATCP 99.125 History History: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09.

ATCP 99.126 ATCP 99.126 Contributing grain dealers; fund assessments.

ATCP 99.126(1) (1) General. Except as provided in sub. (5), a contributing grain dealer shall pay an annual fund assessment for each license year. The annual fund assessment shall be calculated under this section, rather than under s. 126.15 (1), Stats. Except as provided in sub. (4) or (5), the annual fund assessment shall equal the sum of the assessments in subs. (2) and (3).

ATCP 99.126(2) (2) Basic assessment.

ATCP 99.126(2)(a) (a) A contributing grain dealer who reports less than $500,000 in grain payments under s. 126.11 (9) (a), Stats., shall pay a basic assessment equal to the greater of the following amounts:

ATCP 99.126(2)(a)1. 1. $100.

ATCP 99.126(2)(a)2. 2. If the fund balance attributable to grain dealers is less than $6 million on May 31 of the last preceding license year, then the sum of the amounts calculated under s. 126.15 (1) (a) and (b), Stats.