HF 3376

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; modifying financial statement requirements for grain
buyers; amending Minnesota Statutes 2005 Supplement, section 223.17,
subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2005 Supplement, section 223.17, subdivision 6, is
amended to read:

Subd. 6.

Financial statements.

For the purpose of fixing or changing the amount of
a required bond or for any other proper reason, the commissioner shall require an annual
financial statement from a licensee which has been prepared in accordance with generally
accepted accounting principles and which meets the following requirements:

(a) The financial statement shall include, but not be limited to the following: (1)
a balance sheet; (2) a statement of income (profit and loss); (3) a statement of retained
earnings; (4) a statement of changes in financial position; and (5) a statement of the dollar
amount of grain purchased in the previous fiscal year of the grain buyer.

(b) The financial statement shall be accompanied by a deleted text begin reviewed financial statement or
audit deleted text end new text begin compilation report of the financial statement that is new text end prepared by new text begin a grain commission
firm or a management firm approved by the commissioner or by new text end an independent public
accountant deleted text begin or a compilation report prepared by a grain commission firm approved by the
commissioner deleted text end , in accordance with standards established by the American Institute of
Certified Public Accountants. Grain buyers purchasing less than 150,000 bushels of grain
per calendar year may submit a financial statement prepared by a public accountant who is
not an employee or a relative within the third degree of kindred according to civil law.

(c) The financial statement shall be accompanied by a certification by the chief
executive officer or the chief executive officer's designee of the licensee, under penalty
of perjury, that the financial statement accurately reflects the financial condition of the
licensee for the period specified in the statement.

Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. Any
grain buyer having a net worth in excess of $500,000,000 need not file the financial
statement required by this subdivision but must provide the commissioner with a certified
net worth statement. All financial statements filed with the commissioner are private or
nonpublic data as provided in section 13.02.

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end