Chapter ATCP 99

ATCP 99.23 History History: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09.

ATCP 99.235 ATCP 99.235 Contributing grain warehouse keepers; fund assessments.

ATCP 99.235(1) (1) General. Except as provided in sub. (4), a contributing grain warehouse keeper shall pay an annual fund assessment for each license year. The annual fund assessment shall be calculated under this section, rather than under s. 126.30 (1), Stats. Except as provided in sub. (3) or (4), the annual fund assessment shall be calculated according to sub. (2).

ATCP 99.235(2) (2) Assessment amount.

ATCP 99.235(2)(a) (a) A contributing grain warehouse keeper who operates grain warehouses with a combined capacity of less than 500,000 bushels shall pay an annual fund assessment equal to the greater of the following amounts:

ATCP 99.235(2)(a)1. 1. $100.

ATCP 99.235(2)(a)2. 2. If the fund balance attributable to grain warehouse keepers is less than $1 million on May 31 of the last preceding license year, then the sum of the amounts calculated under s. 126.30 (1) (a) and (b), Stats., multiplied by 1.5.

ATCP 99.235(2)(b) (b) A contributing grain warehouse keeper who operates grain warehouses with a combined capacity greater than 500,000 bushels shall pay an annual fund assessment equal to the greater of the following amounts:

ATCP 99.235(2)(b)1. 1. $250.

ATCP 99.235(2)(b)2. 2. If the fund balance attributable to grain warehouse keepers is less than $1 million on May 31 of the last preceding license year, then the sum of the amounts calculated under s. 126.30 (1) (a) and (b), Stats.

ATCP 99.235(3) (3) Reduced assessment. A contributing grain warehouse keeper’s annual fund assessment under sub. (1) is reduced by the following applicable amounts:

ATCP 99.235(3)(a) (a) The amount calculated under s. 126.30 (5m), Stats., if the contributing grain warehouse keeper files security under s. 126.31 (1) (b), Stats.

ATCP 99.235(3)(b) (b) The amount of any refund that applies under s. ATCP 99.25. The refund shall be paid as a credit against the contributing grain warehouse keeper’s annual fund assessment for the next license year, as provided in s. ATCP 99.25 (3).

ATCP 99.235(3)(c) (c) The amount of any assessment reduction that applies under s. ATCP 99.255.

ATCP 99.235(4) (4) Exemption. A contributing grain warehouse keeper is not required to pay any fund assessment under this section for a license year if all of the following apply.

ATCP 99.235(4)(a) (a) The grain warehouse keeper was classified as a contributing grain warehouse keeper in each of the 5 license years immediately preceding that license year.

ATCP 99.235(4)(b) (b) The fund balance attributable to grain warehouse keepers was at least $500,000 on May 31 of the last preceding license year.

ATCP 99.235(4)(c) (c) The overall fund balance was at least $11 million on May 31 of the last preceding license year.

ATCP 99.235 History History: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09; CR 18-061: am. (2) (a) 2., (b) 2., (4) (b), Register February 2020 No. 770 eff. 3-1-20.

ATCP 99.24 ATCP 99.24 Grain warehouse keeper; financial statement.

ATCP 99.24(1) (1) General. A grain warehouse keeper’s financial statement, filed under s. 126.28, Stats., shall comply with this section and s. 126.28, Stats.

ATCP 99.24(2) (2) Liability disclosures. A financial statement 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 99.24(3) (3) Liability classification. A financial statement shall classify, as current liabilities, notes payable that do not have specific due dates.

ATCP 99.24(4) (4) Asset disclosures.

ATCP 99.24(4)(a) (a) A financial statement shall specifically identify and explain, in the financial statement notes or as an attachment to the financial statement, the following assets:

ATCP 99.24(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 99.24(4)(a)2. 2. Every note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

ATCP 99.24(4)(a)3. 3. Every note or account that has been receivable for more than one year, unless the grain warehouse keeper has established an offsetting reserve for uncollectible notes and accounts receivable.

ATCP 99.24(4)(b) (b) A financial statement shall include at least one of the following:

ATCP 99.24(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 99.24(4)(b)2. 2. A summary classifying the age of all notes and accounts receivable.

ATCP 99.24(5) (5) Additional information. A financial statement shall separately and clearly disclose, in the financial statement notes or as an attachment to the financial statement, all of the following information for each kind of grain as of the date of the balance sheet:

ATCP 99.24(5)(a) (a) The total number of bushels of grain in the warehouse keeper’s warehouse.

ATCP 99.24(5)(b) (b) The total number of bushels of grain forwarded to another warehouse keeper, for which the warehouse keeper filing the financial statement holds a warehouse receipt.

ATCP 99.24(5)(c) (c) The combined total bushels of grain under pars. (a) and (b).

ATCP 99.24(5)(d) (d) The total number of bushels of grain that the warehouse keeper is obligated to store for depositors who hold original negotiable warehouse receipts issued by the warehouse keeper.

ATCP 99.24(5)(e) (e) The total number of bushels of grain that the warehouse keeper is obligated to store for depositors who hold original nonnegotiable warehouse receipts issued by the warehouse keeper.

ATCP 99.24(5)(f) (f) The total number of bushels of grain that the warehouse keeper is obligated to store for depositors who hold scale tickets or other types of receipts, except for negotiable and nonnegotiable warehouse receipts, issued by the warehouse keeper.

ATCP 99.24(5)(g) (g) The combined total bushels of grain, under pars. (d) to (f), that the warehouse keeper is obligated to store for depositors.

ATCP 99.24(5)(h) (h) The total number of bushels of grain to which the warehouse keeper claims title.

ATCP 99.24(5)(i) (i) The total number of bushels of grain for which the warehouse keeper has issued outstanding negotiable warehouse receipts that are held as collateral by creditors.

ATCP 99.24(5)(j) (j) The warehouse keeper’s net grain position.

ATCP 99.24(6) (6) Debt to equity ratio; liability adjustments.

ATCP 99.24(6)(a) (a) Solely for the purpose of calculating the debt to equity ratio under s. 126.28 (6) (c) 2., Stats., a grain warehouse keeper may deduct liabilities identified under par. (b) from liabilities reported in the grain warehouse keeper’s financial statement if all the following apply:

ATCP 99.24(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 99.24(6)(a)2. 2. No individual liability adjustment exceeds the corresponding asset, identified in a note or attachment to the financial statement, that justifies the liability adjustment.

ATCP 99.24(6)(a)3. 3. Liability adjustments and offsetting assets are determined as of the date of the balance sheet.

ATCP 99.24(6)(b) (b) A grain warehouse keeper may deduct the following amounts under par. (a):

ATCP 99.24(6)(b)1. 1. An amount that the grain warehouse keeper 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 99.24(6)(b)2. 2. An amount that the grain warehouse keeper has borrowed from a lending institution to buy grain that the warehouse keeper has sold and shipped, provided that the grain warehouse keeper 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 warehouse keeper or the amount owed to the lending institution, whichever is less.

ATCP 99.24(6)(b)3. 3. An amount, borrowed from a lending institution, that is secured by grain that the grain warehouse keeper owns, holds in inventory on the date of the balance sheet, 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 warehouse keeper’s grain given as security and held in inventory, whichever is less.

ATCP 99.24(6)(b)4. 4. An amount, borrowed from a lending institution, that the grain warehouse keeper has used to pay for fertilizer, pesticides, herbicides or seed that the grain warehouse keeper owns, holds in inventory on the date of the balance sheet, 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 99.24(7) (7) Attachments. If information required under this section is provided in an attachment to a reviewed or audited financial statement, the following requirements apply:

ATCP 99.24(7)(a) (a) The attachment shall be prepared on the letterhead of the certified public accountant who reviewed or audited the financial statement.

ATCP 99.24(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 99.24 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

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

ATCP 99.25(1) (1) Partial refund of assessment. The department may refund part of an annual fund assessment paid by a contributing grain warehouse keeper under s. 126.30, Stats., if all of the following apply:

ATCP 99.25(1)(a) (a) The grain warehouse keeper paid the full amount of the assessment, including any late payment penalties that apply under s. 126.30 (6) (d), Stats.

ATCP 99.25(1)(b) (b) The grain warehouse keeper is the surviving entity in a merger under s. 179.77, 180.1101, 183.1201 or 185.61, Stats., or has acquired property pursuant to a sale of assets under s. 180.1202, Stats.

ATCP 99.25(1)(c) (c) The assessment was based on the grain warehouse keeper’s financial statement for the fiscal year in which the merger or acquisition under par. (b) took effect.

ATCP 99.25(1)(d) (d) The grain warehouse keeper’s financial statement, for the fiscal year in which the merger or acquisition under par. (b) took effect, caused the sum of the grain warehouse keeper’s current ratio assessment rate under s. 126.30 (2), Stats., and debt to equity ratio assessment rate under s. 126.30 (4), Stats., to increase by at least 100% compared to the preceding license year.

ATCP 99.25(1)(e) (e) The grain warehouse keeper’s annual financial statements, for the fiscal years immediately preceding and immediately following the fiscal year in which the merger or acquisition under par. (b) took effect, show positive equity, a current ratio of at least 1.25 to 1.00 and a debt to equity ratio of no more than 3.0 to 1.0.

ATCP 99.25(1)(f) (f) In the license year immediately following the license year for which the grain warehouse keeper paid the assessment, the sum of the grain warehouse keeper’s current ratio assessment rate under s. 126.30 (2), Stats., and debt to equity assessment rate under s. 126.30 (4), Stats., declines by at least 50% compared to the license year for which the grain warehouse keeper paid the assessment.

ATCP 99.25(1)(g) (g) The grain warehouse keeper requests the refund in writing, by September 1 of the grain warehouse keeper’s next license year.

ATCP 99.25(2) (2) Refund amount. The amount of the refund under sub. (1) shall equal 75% of the difference between the assessment amount paid by the grain warehouse keeper and the assessment amount required of the grain warehouse keeper in the next license year.

ATCP 99.25(3) (3) Refund paid as credit against next year’s assessment.

ATCP 99.25(3)(a) (a) The department shall pay the refund under sub. (1) as a credit against the grain warehouse keeper’s assessment for the next license year. The department shall apportion the credit, pro rata, against the quarterly assessment installments required of the grain warehouse keeper under s. 126.30 (6), Stats., in that next license year. If the credit exceeds the total assessment required of the grain warehouse keeper in that next license year, the department shall credit the balance in the same fashion against assessments required of the grain warehouse keeper in subsequent consecutive license years, except that the department may not grant a credit in more than 4 subsequent license years.

ATCP 99.25(3)(b) (b) The department may not pay any refund under sub. (1), except in the manner prescribed in par. (a). The department may not pay the refund to any person other than the grain warehouse keeper who paid the original assessment on which the refund is given.

ATCP 99.25 History History: Emerg. cr. eff. 1-29-04; CR 04-030: cr. Register September 2004 No. 585, eff. 10-1-04.

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

ATCP 99.255(1) (1) Voluntary Security. A licensed grain warehouse keeper may at any time file security with the department, regardless of whether the warehouse keeper is required to file security. Except as provided in sub. (2), a voluntary security filing under this subsection does not relieve a grain dealer of any obligation to file security or pay fund assessments.

ATCP 99.255 Note Note: A grain warehouse keeper who files voluntary security under sub. (1) may be eligible for a reduction in fund assessments under sub. (2), and may be able to make a more favorable disclosure to producers under s. ATCP 99.26 (2).

ATCP 99.255(2) (2) Reduced assessment. If, for the duration of a license year, a contributing grain warehouse keeper maintains security under sub. (1) in an amount that is at least equal to the grain warehouse keeper’s estimated default exposure less the maximum fund reimbursement amount, the grain warehouse keeper’s annual fund assessment under s. 126.30, Stats., for that year is reduced by an amount that is determined as follows:

ATCP 99.255(2)(a) (a) Subtract the maximum fund reimbursement from the grain warehouse keeper’s estimated default exposure.

ATCP 99.255(2)(b) (b) Divide the result in par. (a) by the grain warehouse keeper’s estimated default exposure.

ATCP 99.255(2)(c) (c) Multiply the result in par. (b) by the amount of the grain warehouse keeper’s annual fund assessment under s. 126.30 (1), Stats., disregarding any assessment reduction under s. 126.30 (5m), Stats.

ATCP 99.255(2)(d) (d) Subtract, from the result in par. (c), the amount of any assessment reduction given under s. 126.30 (5m), Stats.

ATCP 99.255 History History: Emerg. cr. eff. 4-29-04; CR 04-030: cr. Register September 2004 No. 585, eff. 10-1-04; CR: 05-068: r. and recr. (1), am. (2) (intro.) Register April 2006 No. 604, eff. 5-1-06; correction in (2) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666.

ATCP 99.26 ATCP 99.26 Grain warehouse keeper; disclosure to depositors.

ATCP 99.26(1) (1) Disclosure required. A grain warehouse keeper shall make a disclosure under sub. (2) to every grain producer or producer agent who is a depositor for whom the grain warehouse keeper stores grain in this state. The grain warehouse keeper shall make the disclosure, in the form prescribed under sub. (2), in a written document given to the depositor. The disclosure shall be clear and conspicuous, and shall be set apart from every other writing. The grain warehouse keeper shall make the disclosure at all of the following times:

ATCP 99.26(1)(a) (a) The first time the grain warehouse keeper accepts a grain deposit from that depositor.

ATCP 99.26(1)(b) (b) The first time the grain warehouse keeper accepts a grain deposit from that depositor in each license year.

ATCP 99.26(1)(c) (c) The first time the grain warehouse keeper accepts a grain deposit from that depositor following a change in circumstances that requires a different disclosure statement under sub. (2).

ATCP 99.26(2) (2) Form of disclosure. A disclosure under sub. (1) shall consist of a verbatim copy of one of the following statements, as applicable:

ATCP 99.26(2)(a) (a) The following statement if the grain warehouse keeper is required to be licensed under s. 126.26 (1), Stats., and the grain warehouse keeper’s estimated default exposure does not exceed the sum of the maximum fund reimbursement amount and any security amount the grain warehouse keeper has on file with the department:

IMPORTANT NOTICE

[Name of grain warehouse keeper] participates in Wisconsin’s Agricultural Producer Security program. If we fail to return your grain on demand, you may file a claim under this program. The program may reimburse you for the loss of up to $100,000 worth of grain. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone [phone]).

ATCP 99.26(2)(b) (b) The following statement if the grain warehouse keeper is required to be licensed under s. 126.26 (1), Stats., and the grain warehouse keeper’s estimated default exposure exceeds the sum of the maximum fund reimbursement amount and any security amount the grain warehouse keeper has on file with the department: