Minnesota Session Laws - 2025, Regular Session

CHAPTER 1--S.F.No. 1552

An act

relating to agriculture; modifying financial reporting requirements for grain buyers;

amending Minnesota Statutes 2024, section 223.17, subdivision 6.

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

Section 1.

Minnesota Statutes 2024, 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 , reviewed, or audited 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 ;

(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 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 (4) 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 (5) for grain buyers purchasing $17,500,000 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 a grain buyer that qualifies for the exemption in paragraph (c), the commissioner retains the right to require the grain buyer 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 a grain buyer to provide additional financial statements or financial reporting, including audited financial statements. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Presented to the governor March 14, 2025

Signed by the governor March 17, 2025, 10:54 a.m.