(1) All grain dealers doing business in this state shall be licensed by the commission. If the applicant is an individual, the application shall include the applicant's social security number. To procure and maintain a license, each grain dealer shall:

(a)(i) Prior to July 1, 2027, pay an annual fee of one hundred dollars which shall be due on or before the date established by the commission for each license. Such fees shall be paid to the State Treasurer and credited to the General Fund; and

(ii) Beginning on July 1, 2027, pay a fee that is established by the commission. Such fee shall not exceed one thousand five hundred dollars for each license. Such fee shall be remitted to the State Treasurer for credit to the Grain Dealer and Grain Warehouse Cash Fund. On or before December 1, 2026, the commission shall establish such fees and electronically submit a schedule of such fees to the Clerk of the Legislature;

(b) File a security pursuant to subsection (2) of this section; and

(c) File a reviewed or audited fiscal year-end financial statement prepared by an independent certified public accounting firm as required in subsection (3) of this section.

(2)(a) The security required under subdivision (1)(b) of this section may be a bond issued by a corporate surety company and payable to the commission, an irrevocable letter of credit, or a certificate of deposit, subject to the approval of the commission, for the benefit of any producer who files a valid claim arising from a sale to a grain dealer.

(b) The security shall be in an amount set by the commission of not less than thirty-five thousand dollars and not more than one million dollars. Amounts used in the calculation of the security:

(i) Shall include all direct delivery grain purchases and exchanges valued on the date delivery is made; and

(ii) Shall not include any transactions in which direct delivery grain is exchanged for a post-direct delivery storage position and the post-direct delivery storage position is created by an in-store transfer on the same date as the delivery of the direct delivery grain.

(c) Such security shall be furnished on the following conditions, unless otherwise provided in a written contract between the parties:

(i) If a written demand for payment is made and such demand is accompanied by documented proof of delivery of grain, such payment shall occur not later than ten business days after the date of such demand; and

(ii) If a licensee fails to pay for any grain that such licensee has purchased within thirty days after such payment is due under subdivision (c)(i) of this subsection, such licensee shall be liable to the seller for interest on the unpaid amount pursuant to section 45-103.

(d) The liability of the surety shall cover purchases made by the grain dealer during the time the bond is in force. A grain dealer's bond filed with the commission shall be in continuous force and effect until canceled by the surety. The liability of the surety on any bond required by this section shall not accumulate for each successive license period during which the bond is in force.

(e) No seller shall have recourse to the licensee's security unless, as of the date the commission initiates an administrative action against the licensee, the seller has completed delivery of grain to the licensee for which payment is due and payable. Any seller holding a deferred-pricing, price-later, or similar contract under which title has passed but no payment obligation has yet matured shall not be eligible to claim against the security unless the payment obligation became due prior to the date of such administrative action.

(3)(a) If licensing as an individual, the financial statement shall be prepared in accordance with Other Comprehensive Basis of Accountancy, as filed with the board, for a personal financial statement, using historical cost and accrual basis of accounting. If licensing as a partnership, corporation, or limited liability company, the financial statement shall be prepared in accordance with accounting principles generally accepted.

(b) The financial statement shall include:

(i) A statement of income showing profit or loss;

(ii) A balance sheet;

(iii) A statement of cash flow;

(iv) A statement of proprietor's capital or retained earnings;

(v) The volume and dollar value of the grain purchases the licensee made in Nebraska during the fiscal year;

(vi) The volume and dollar value of transactions in which direct delivery grain is exchanged for a post-direct delivery storage position and the post-direct delivery storage position is not created by an in-store transfer on the same date as the delivery of the direct delivery grain; and

(vii) The accounting firm's certification, assurances, opinions, and comments and the notes with respect to the financial statement.

(c) If the volume and dollar value of the grain purchases is not reported, the grain dealer shall file the maximum grain dealer security as required by the Grain Dealer Act.

(d) If an applicant for a grain dealer license is a wholly owned subsidiary of a parent company and such a financial statement is not prepared for the subsidiary, the parent company shall submit its reviewed or audited fiscal year-end financial statement and shall execute an unconditional guarantee agreement as prescribed by the commission.