If the contract is a deferred price contract, a pricing deadline that is not more than one year after the date on which the grain dealer takes custody or control of the grain.
The grain dealer's permanent business location.
Other information required under this section.
A grain dealer shall make full payment under a deferred payment contract by the deadline date specified in the contract.
The parties may not extend a payment or pricing deadline under sub. (2) (d)
, except that they may sign a new contract that extends either deadline or both deadlines for up to 180 days if the new contract refers to the contract number of the original contract.
A grain dealer may not enter into a deferred payment contract with a grain producer or producer agent unless the deferred payment contract includes the following statement in clear and conspicuous print immediately above the contract signature line: “This is not a storage contract. The grain dealer (buyer) becomes the owner of any grain that the producer or producer agent (seller) delivers to the grain dealer under this contract. The producer or producer agent relinquishes ownership and control of the grain, and may become an unsecured creditor pending payment."
A grain dealer may not enter into a deferred payment contract under which a grain producer or producer agent agrees to receive payment for grain more than 120 days after delivering the grain to the grain dealer unless the deferred payment contract clearly and conspicuously discloses that if the grain dealer defaults on payment under the deferred payment contract, any claim filed by the producer or producer agent with the department under s. 126.70
will be disallowed. The department may by rule or order specify the form and content of the disclosure.
(5) Deferred payment contract assessment.
From the amount that a grain dealer pays to a grain producer or producer agent under a deferred payment contract, the grain dealer shall deduct a deferred payment contract assessment. The assessment shall equal the total amount owed under the contract before the assessment is deducted, multiplied by the deferred payment assessment rate that applies under s. 126.15 (6)
when the contract is made. The grain dealer shall disclose the assessment amount or, if the contract is a deferred price contract, the method by which the assessment amount will be determined, in the written contract under sub. (1)
History: 2001 a. 16
; 2009 a. 296
Grain dealers; business practices. 126.20(1)(1)
Grain weight, grade, and quality.
A grain dealer shall do all of the following when determining the weight, grade, or quality of grain:
Accurately determine the weight, grade, or quality using accurate weighing, testing, or grading equipment.
Accurately record the determined weight, grade, or quality.
(2) Timely payment to producers.
A grain dealer shall pay for grain when payment is due. A grain dealer may not make payment by nonnegotiable check or note or by check drawn on an account containing insufficient funds.
(3) Permanent business location.
A grain dealer licensed under s. 126.11
shall do all of the following:
Maintain a permanent business address at which grain producers may readily contact the grain dealer during business hours.
On each day that the Chicago Board of Trade is open for trading, keep business hours that start no later than 9 a.m. and end no earlier than 2:30 p.m.
Prominently post the grain dealer's business hours at each of the grain dealer's business locations in this state.
(4) Prohibited practices.
No grain dealer, or officer, employee, or agent of a grain dealer, may do any of the following:
Misrepresent the weight, grade, or quality of producer grain received from or delivered to any person.
Falsify any record or account, or conspire with any other person to falsify a record or account.
Make any false or misleading representation to the department.
If the grain dealer is licensed under s. 126.11
, engage in any activity that is inconsistent with a representation made in the grain dealer's annual license application.
Make any false or misleading representation to a grain producer or producer agent related to any matters regulated under this chapter.
Fail to file the full amount of security required under s. 126.16 (7)
by the date that the department specifies.
Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.
History: 2001 a. 16
; 2009 a. 296
Grain producer obligations. 126.21(1)(1)
Delivery per contract.
No grain producer or producer agent who contracts to sell and deliver grain to a grain dealer at an agreed price may wrongfully refuse to deliver that grain according to the contract.
(2) Disclosure of liens and security interests.
A grain dealer procuring grain from a grain producer or producer agent may require the grain producer or producer agent to disclose any liens or security interests that apply to the grain. The grain dealer may require the disclosure in writing. The grain dealer may require the grain producer or producer agent to specify the nature and amount of each lien or security interest and the identity of the person holding that lien or security interest. No grain producer may falsify or fraudulently withhold information required under this subsection in order to sell grain.
History: 2001 a. 16
GRAIN WAREHOUSE KEEPERS
Subch. IV of ch. 126 Cross-reference
See also ch. ATCP 99
, Wis. adm. code.
In this subchapter:
“Capacity" means the maximum amount of grain, measured in bushels, that can be stored in a grain warehouse. The capacity of a grain warehouse is determined by dividing the cubic volume of all bins, expressed in cubic feet, by 1.244 cubic feet per bushel, and applying a pack factor that the department specifies by rule.
“Contributing grain warehouse keeper" means a grain warehouse keeper who is licensed under s. 126.26
, who either has paid one or more quarterly installments under s. 126.30 (6)
or is required to contribute to the fund, but the first quarterly installment under s. 126.30 (6)
is not yet due, and who is not disqualified under s. 126.29 (2)
“Current ratio" means the ratio of the value of current assets to the value of current liabilities, calculated according to s. 126.28 (6) (c) 1.
“Debt to equity ratio" means the ratio of the value of liabilities to equity, calculated according to s. 126.28 (6) (c) 2.
“Depositor" means any of the following:
A person who delivers grain to a grain warehouse keeper for storage, conditioning, shipping, or handling, without transferring ownership to the warehouse keeper.
A person who owns or legally holds a warehouse receipt or other document that is issued by a grain warehouse keeper and that entitles the person to receive stored grain.
“Disqualified grain warehouse keeper" means a grain warehouse keeper who is disqualified from the fund under s. 126.29 (2)
“Grain warehouse" means a facility in this state that is used to receive, store, or condition grain for others or that is used in the shipment of grain for others, except that “grain warehouse" does not include a transport vehicle.
“Grain warehouse keeper" means a person who operates one or more grain warehouses in this state to receive, store, condition, or ship grain for others, except that “grain warehouse keeper" does not include a person licensed under the United States Warehouse Act, 7 USC 241
“License year" means the period beginning on September 1 and ending on the following August 31.
“Warehouse receipt" means a receipt for grain, issued by a grain warehouse keeper, that is also a document of title under s. 401.201 (2) (i)
History: 2001 a. 16
; 2009 a. 320
Grain warehouse keepers; licensing. 126.26(1)(a)(a)
No grain warehouse keeper may hold at any time more than 50,000 bushels of grain for others without a current annual license from the department. A grain warehouse keeper who has grain warehouses with a combined capacity of more than 50,000 bushels shall obtain a license unless the grain warehouse keeper proves to the department that the grain warehouse keeper holds no more than 50,000 bushels of grain for others at any time.
A license under par. (a)
expires on the August 31 following its issuance. No person may transfer or assign a license issued under par. (a)
(2) License application.
A person shall apply for a grain warehouse keeper license in writing, on a form provided by the department. The applicant shall provide all of the following:
The applicant's legal name and any trade name under which the applicant proposes to operate as a grain warehouse keeper.
A statement of whether the applicant is an individual, a corporation, a partnership, a cooperative, an unincorporated cooperative association, a limited liability company, a 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.
The mailing address of the applicant's primary business location and the name of a responsible individual who may be contacted at that location.
The street address and capacity of every grain warehouse that the applicant operates or proposes to operate in this state and the name of a responsible individual who may be contacted at each warehouse.
The combined capacity of all grain warehouses identified under par. (d)
Proof that the applicant is insured as required under s. 126.27
, unless the applicant has previously filed proof that remains current. The proof may consist of a certification provided by an insurance company licensed to do business in this state.
Other relevant information required by the department.
(3) License fees and surcharges.
A person applying for a grain warehouse keeper license shall pay the following fees and surcharges in the amounts that the department specifies by rule:
A nonrefundable basic license fee, which may be based on the number of grain warehouses that the applicant operates.
A grain warehouse inspection fee, which may be based on the number and sizes of the grain warehouses that the applicant operates.
A supplementary inspection fee for each grain warehouse that the applicant operates in excess of one grain warehouse.
A license surcharge if the department determines that, within 365 days before submitting the license application, the applicant operated as a grain warehouse keeper 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 the license year in which the applicant violated sub. (1)
A license surcharge if during the preceding 12 months the applicant failed to file an annual financial statement required under s. 126.28 (1) (b)
by the applicable deadline.
A license surcharge if a renewal applicant fails to renew a license by the license expiration date of August 31.
(3m) Effect of payment of surcharge.
Payment of a license surcharge under sub. (3) (d)
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.
(4) License for part of year; fees.
A person who applies for an annual grain warehouse keeper license after the beginning of a license year shall pay the full annual fee amounts required under sub. (3)
(5) Fee credit.
Beginning on January 1, 2023, if the combined fund balance contributed by grain warehouse keepers and grain dealers, as defined in s. 126.10 (9)
, exceeds $2,300,000 on May 31 of any license year, the department shall credit 12.5 percent of the excess amount against grain warehouse inspection fees charged under sub. (3) (b)
to contributing grain warehouse keepers who file timely license renewal applications for the next license year. The department shall credit each contributing grain warehouse keeper on a prorated basis, in proportion to the total inspection fees that the warehouse keeper has paid under sub. (3) (b)
for the 4 preceding license years.
(6) Fee statement.
The department shall provide, with each license application form, a written statement of all license fees and surcharges required under sub. (3)
or the formula for determining them. The department shall specify any fee credit for which the applicant may qualify under sub. (5)
(7) No license without full payment.
The department may not grant a license under sub. (1)
until the applicant pays all license fees and surcharges identified in the department's statement under sub. (6)
. 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.
(8) Action granting or denying application.
The department shall grant or deny a license application under sub. (2)
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 reasons for the denial.
(9) License displayed.
A grain warehouse keeper who is required to hold a license under sub. (1)
shall prominently display a copy of that license at each grain warehouse.
A licensed warehouse keeper shall notify the department, in writing, before the warehouse keeper adds a grain warehouse or changes the location or capacity of any grain warehouse. In the notice, the grain warehouse keeper shall specify any change in the combined capacity of grain warehouses operated by the grain warehouse keeper resulting from the proposed addition or change.
Grain warehouse keepers; insurance. 126.27(1)(1)
Fire and extended coverage insurance.
A grain warehouse keeper licensed under s. 126.26 (1)
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 warehouse keeper, whether owned by the grain warehouse keeper or held for others, at the full local market value of the grain.
(2) Insurance cancellation; replacement. 126.27(2)(a)(a)
No person may cancel an insurance policy required under sub. (1)
unless that person serves a written notice of the intended cancellation on the department at least 30 days before the cancellation takes effect.
Whenever an insurance policy under sub. (1)
is canceled, the grain warehouse keeper shall replace the policy so that there is no lapse in coverage. Within 20 days after a cancellation notice under par. (a)
is served on the department, and at least 10 days before the cancellation takes effect, the grain warehouse keeper shall provide the department with proof of the replacement policy. The department may accept, as proof, a certification provided by an insurance company licensed to do business in this state.
(3) Insurance deductibles.
An insurance policy does not comply with sub. (1)
if it contains any deductible clause that limits the insurer's obligation to pay to each depositor the full value of the depositor's covered losses under the policy. The grain warehouse keeper may agree to indemnify the insurer for a portion of each depositor claim that the insurer pays under the policy if the agreement does not limit the insurer's obligation to pay each depositor the full amount of the depositor's covered losses.
(4) Insurance disclosures.
A grain warehouse keeper licensed under s. 126.26 (1)
shall disclose all of the following to a depositor if the depositor requests that information:
The material terms of the grain warehouse keeper's fire and extended coverage insurance policy under sub. (1)
Whether the grain warehouse keeper has liability insurance covering the grain warehouse keeper's grain operations, and the material terms of that liability insurance policy.