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SF1552 (Legislative Session 94 (2025-2026))

Financial reporting requirements for grain buyers modification

Related bill: HF1063

AI Generated Summary

The legislative bill S.F. No. 1552 focuses on adjusting the financial reporting requirements for grain buyers in Minnesota. Key changes proposed in the bill include:

  1. Annual Financial Statements: Grain buyers must submit an annual financial statement to the commissioner. This statement needs to be prepared by an independent third-party and should follow established accounting principles. It must include a balance sheet, income statement, and other relevant financial details like the amount of grain purchased during the fiscal year.

  2. Compilation and Certification: The financial statement must be accompanied by a compilation report, and must be certified by the chief executive (or their designee) of the grain buying company. This certification is under the penalty of perjury, affirming that the financial statements truthfully reflect the company's financial status.

  3. Audit Requirements Based on Purchase Volume:

    • Grain buyers who purchase under $7,500,000 of grain annually need to have their statements reviewed by a certified public accountant to ensure they are free of material misstatements.
    • Those buying $7,500,000 or more must either get their statements audited or reviewed according to similar standards.
    • For those purchasing $20,000,000 or more of grain annually, an audit by a certified public accountant is mandatory.

  4. Exemptions for Small Purchasers: Grain buyers who purchase grain using immediate payments like cash or certified checks, and whose gross annual purchases do not exceed $1,000,000, are exempt from these requirements, although the commissioner retains the right to request financial reporting under certain conditions.

  5. Privacy and Compliance: All submitted financial statements are considered private or nonpublic. The commissioner is mandated to annually review these statements to ensure compliance and may request additional financial details or audits.

  6. Educational Duties: The commissioner must provide information on fiduciary duties to each licensee annually, ensuring that grain buyers understand their responsibilities when certifying their financial statements.

The bill aims to increase transparency and accountability in the grain buying industry, enhancing financial oversight and ensuring compliance with relevant standards.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionReceived from Senate
February 16, 2025SenateFloorActionIntroduction and first reading
February 16, 2025SenateFloorActionReferred toAgriculture, Veterans, Broadband, and Rural Development
February 26, 2025HouseFloorActionSenate file first reading, referred toAgriculture Finance and Policy
March 02, 2025HouseFloorActionMotion to recall
February 23, 2025SenateFloorActionComm report: To pass
February 23, 2025SenateFloorActionSecond reading
March 02, 2025HouseFloorActionReferred to Chief Clerk for comparison with
February 26, 2025SenateFloorActionSpecial Order: Amended
March 04, 2025HouseFloorActionBills not identical, SF substituted on General Register
March 04, 2025HouseFloorActionSecond reading
February 26, 2025SenateFloorActionThird reading Passed as amended
March 05, 2025HouseFloorActionHouse rule 1.21, placed on Calendar for the Day
March 12, 2025SenateFloorActionReturned from House
SenateNoteActionPresentment date
March 09, 2025HouseFloorActionThird reading
March 09, 2025HouseFloorActionBill was passed
SenateNoteActionGovernor's action Approval
SenateNoteActionGovernor's action Approval
SenateNoteActionSecretary of State
SenateNoteActionSecretary of State
HouseFloorActionPresented to Governor
SenateNoteActionEffective date
HouseNoteActionGovernor approval
HouseFloorActionSecretary of State, Filed
HouseFloorActionSecretary of State, Filed
HouseNoteActionChapter number

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specification that financial statements must be prepared in accordance with national or international accounting standards.",
        "Provision for certification by the licensee's CEO or designee under penalty of perjury."
      ],
      "removed": [],
      "summary": "This bill modifies financial reporting requirements for grain buyers under section 223.17.",
      "modified": [
        "Clarifies financial statement requirements vary based on the annual purchase volume.",
        "Reorganizes conditions under which grain buyers must perform audits."
      ]
    },
    "citation": "223.17"
  },
  {
    "analysis": {
      "added": [
        "Affirms that financial statements are treated as private or nonpublic data."
      ],
      "removed": [],
      "summary": "References the data privacy provisions applicable to financial statements filed with the commissioner under section 13.02.",
      "modified": []
    },
    "citation": "13.02"
  },
  {
    "analysis": {
      "added": [
        "Defines exemption conditions based on immediate payment methods used by grain buyers."
      ],
      "removed": [],
      "summary": "Section 223.16 is referenced regarding payment methods exempting grain buyers from certain financial reporting.",
      "modified": []
    },
    "citation": "223.16"
  },
  {
    "analysis": {
      "added": [
        "Empowers the commissioner to request additional financial reporting based on inspections or violations."
      ],
      "removed": [],
      "summary": "Reference made to chapter 232 in the context of commissioner inspections and reporting.",
      "modified": []
    },
    "citation": "232"
  }
]

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