HF 3815

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/15/2024 09:36am

A bill for an act
relating to agriculture; modifying grain indemnity provisions; amending Minnesota
Statutes 2022, sections 223.17, subdivision 6; 232.21, subdivisions 3, 7, 11, 12,
13.

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

Section 1.

Minnesota Statutes 2022, section 223.17, subdivision 6, is amended to read:

Subd. 6.

Financial statements.

(a) Except as allowed in paragraph (c), a grain buyer
licensed under this chapter must annually submit to the commissioner a financial statement
prepared new text begin by a third-party independent accountant or certified public accountant new text end in accordance
with deleted text begin generally accepted accounting principles deleted text end new text begin national or international accounting standards new text end .
The annual financial statement required under this subdivision must also:

(1) include deleted text begin , deleted text end but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of deleted text begin changes in financial position deleted text end new text begin cash flow new text end ; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the
grain buyer;

(2) be accompanied by a deleted text begin compilation deleted text end report of the financial statement that is prepared
by a grain commission firm or a management firm approved by the commissioner or by an
independent public accountant, in accordance with standards established by the American
Institute of Certified Public Accountants new text begin or similar international standards new text end ;

deleted text begin (3) be accompanied by a certification by the chief executive officer or the chief executive
officer's designee of the licensee, and where applicable, all members of the governing board
of directors under penalty of perjury, that the financial statement accurately reflects the
financial condition of the licensee for the period specified in the statement;
deleted text end

deleted text begin (4) for grain buyers purchasing under $7,500,000 of grain annually, be reviewed by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants, and must show that the financial statements are free from
material misstatements; and
deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end for grain buyers purchasing $7,500,000 or more of grain annually, be audited new text begin or
reviewed new text end by a certified public accountant in accordance with standards established by the
American Institute of Certified Public Accountants deleted text begin and deleted text end new text begin or similar international standards.
An audit new text end must include an opinion statement from the certified public accountant deleted text begin . deleted text end new text begin performing
the audit; and
new text end

new text begin (4) for grain buyers purchasing $20,000,000 or more of grain annually, be audited by a
certified public accountant in accordance with standards established by the American Institute
of Certified Public Accountants or similar international standards. The audit must include
an opinion statement from the certified public accountant performing the audit.
new text end

(b) 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. All
financial statements filed with the commissioner are private or nonpublic data as provided
in section 13.02.

(c) A grain buyer who purchases grain immediately upon delivery solely with cash deleted text begin ; a
certified check; a cashier's check; or a postal, bank, or express money order deleted text end new text begin , as defined in
section 223.16, subdivision 2a, paragraph (b), new text end is exempt from this subdivision if the grain
buyer's gross annual purchases are $1,000,000 or less.

new text begin (d) For an entity that qualifies for the exemption in paragraph (c), the commissioner
retains the right to require the entity to provide the commissioner with financial reporting
based on inspections, any report of nonpayment, or other documentation related to violations
of this chapter, chapter 232, or Minnesota Rules, chapter 1562.
new text end

new text begin (e) To ensure compliance with this chapter, the commissioner must annually review
financial statements submitted under paragraph (a).
new text end

deleted text begin (d) deleted text end new text begin (f) new text end The commissioner shall annually provide information on a person's fiduciary
duties to each licensee. deleted text begin To the extent practicable, the commissioner must direct each licensee
deleted text end deleted text begin to provide this information to all persons required to certify the licensee's financial statement
under paragraph (a), clause (3).
deleted text end

new text begin (g) The commissioner may require an entity to provide additional financial statements
or financial reporting, including audited financial statements.
new text end

Sec. 2.

Minnesota Statutes 2022, section 232.21, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of agriculture new text begin or the
commissioner's designee new text end .

Sec. 3.

Minnesota Statutes 2022, section 232.21, subdivision 7, is amended to read:

Subd. 7.

Grain.

"Grain" means any deleted text begin cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture,
dry edible beans, or agricultural crops designated by the commissioner by rule deleted text end new text begin product
commonly referred to as grain, including wheat, corn, oats, barley, rye, rice, soybeans,
emmer, sorghum, triticale, millet, pulses, dry edible beans, sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed, crambe, sesame seed, and other products ordinarily stored
in grain warehouses new text end .

Sec. 4.

Minnesota Statutes 2022, section 232.21, subdivision 11, is amended to read:

Subd. 11.

Producer.

"Producer" means a person who deleted text begin owns or manages a grain producing
or growing operation and holds or shares the responsibility for marketing that grain produced deleted text end new text begin
grows grain on land owned or leased by the person new text end .

Sec. 5.

Minnesota Statutes 2022, section 232.21, subdivision 12, is amended to read:

Subd. 12.

Public grain warehouse operator.

"Public grain warehouse operator" means new text begin :
(1) new text end a person deleted text begin licensed to operate deleted text end new text begin operating new text end a grain warehouse in which grain belonging to
persons other than the grain warehouse operator is accepted for storage or purchase deleted text begin , or deleted text end new text begin ; (2)
a person new text end who offers grain storage or grain warehouse facilities to the public for hire new text begin ; new text end or new text begin (3)
new text end a feed-processing plant that receives and stores grain, the equivalent of which deleted text begin , deleted text end it processes
and returns to the grain's owner in amounts, at intervals, and with added ingredients that
are mutually agreeable to the grain's owner and the person operating the plant.

Sec. 6.

Minnesota Statutes 2022, section 232.21, subdivision 13, is amended to read:

Subd. 13.

Scale ticket.

"Scale ticket" means a memorandum deleted text begin showing the weight, grade
and kind of grain which is deleted text end issued by a grain new text begin elevator or new text end warehouse operator to a depositor
at the time the grain is delivered.