Alert! This chapter may be affected by an emergency rule:
ATCP 100.135(7)(d) (d) If s. 126.45 (1) (b), Stats., requires a license milk contractor to become a contributing milk contractor during the license year, the milk contractor shall pay only those quarterly installments that become due after the requirement takes effect.
ATCP 100.135(7)(e) (e) A contributing milk contractor who fails to pay the full amount of any quarterly installment when due shall pay, in addition to that installment, a late payment penalty of $50 or 10% of the overdue installment, whichever is greater.
ATCP 100.135(8) (8) Notice of annual assessment and quarterly installments. When the department issues an annual license to a contributing milk contractor, the department shall notify the milk contractor of all of the following:
ATCP 100.135(8)(a) (a) The amount of the milk contractor's annual fund assessment under this section.
ATCP 100.135(8)(b) (b) The amount of each required quarterly installment under sub. (7) and the date by which the milk contractor must pay each installment.
ATCP 100.135(8)(c) (c) The penalty that applies under sub. (7) (e) if the milk contractor fails to pay any quarterly installment when due.
ATCP 100.135(9) (9) Minimum fund assessments. A contributing milk contractor shall pay the following minimum assessment if that minimum assessment is greater than the amount calculated under sub. (1) less applicable reductions under sub. (6):
ATCP 100.135(9)(a) (a) If the milk contractor reports an amount under s. 126.41 (6) (a), Stats., that is less than $1.5 million, the minimum assessment is $100.
ATCP 100.135(9)(b) (b) If the milk contractor reports an amount under s. 126.41 (6) (a), Stats., that is at least $1.5 million but less than $6 million, the minimum assessment is $200.
ATCP 100.135(9)(c) (c) If the milk contractor reports an amount under s. 126.41 (6) (a), Stats., that is at least $6 million, the minimum assessment is $500.
ATCP 100.135(10) (10) Exemption. A contributing milk contractor is not required to pay any fund assessment under this section for a license year if all of the following apply.
ATCP 100.135(10)(a) (a) The milk contractor was classified as a contributing milk contractor in each of the 5 license years immediately preceding that license year.
ATCP 100.135(10)(b) (b) The fund balance attributable to milk contractors was at least $6 million on February 28 of the last preceding license year.
ATCP 100.135(10)(c) (c) The overall fund balance was at least $11 million on February 28 of the last preceding license year.
ATCP 100.135 History History: Emerg. cr. eff. 4-29-04; CR 04-030: cr. Register September 2004 No. 585, eff. 10-1-04; CR 05-068: r. and recr. (1), am. (2) (intro.) Register April 2006 No. 604, eff. 5-1-06; CR 07-073: r. and recr. Register December 2008 No. 636, eff. 1-1-09; corrections in (8) (b) and (c) made under s. 13.92 (4) (b) 7., Stats., Register December 2008 No. 636; correction in (6) (b) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666.
ATCP 100.14 ATCP 100.14Custom processing services to milk producers. Chapter 126, Stats., does not apply to a dairy plant operator who takes temporary custody of producer milk solely to process it for the milk producer, provided that all the following apply:
ATCP 100.14(1) (1)The producer retains title to all of the milk and all of the processed dairy products made from that milk.
ATCP 100.14(2) (2)The operator does not market the milk or processed dairy products, but promptly returns the processed dairy products to the producer or the producer's agent for consumption or marketing.
ATCP 100.14(3) (3)The operator does not commingle producer-owned milk or dairy products with other milk or dairy products.
ATCP 100.14(4) (4)The operator provides the processing services under a written contract with the producer or the producer's agent. The contract shall clearly and conspicuously disclose all the following:
ATCP 100.14(4)(a) (a) That the producer retains title to all the milk shipped to the operator for processing, and all the processed dairy products made from that milk.
ATCP 100.14(4)(b) (b) That the producer's milk shipments to the operator are not secured under ch. 126, Stats.
ATCP 100.14(5) (5)The operator keeps a copy of the contract under sub. (4) for at least 3 years after the contract ends, and makes it available to the department for inspection and copying upon request.
ATCP 100.14(6) (6)The operator submits to the department, by May 1 of each year, an affidavit certifying that the operator qualifies for the custom processing exemption under this section.
ATCP 100.14 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.
ATCP 100.16 ATCP 100.16Producer agents.
ATCP 100.16(1)(1)Qualified producer agent. A producer agent is not a qualified producer agent under s. 126.45 (3), Stats., nor may a producer agent file a default claim under s. 126.70 (1) (c), Stats., unless all the following apply:
ATCP 100.16(1)(a) (a) The producer agent procures producer milk in this state solely as the agent of milk producers. Notwithstanding this paragraph, a milk contractor who buys some milk and markets other milk as a producer agent may file a default claim under s. 126.70 (1) (c), Stats., for producer milk that the milk contractor markets as a producer agent if the contractor complies with pars. (b) to (f) with respect to all of the milk that the contractor procures in this state as a producer agent.
ATCP 100.16(1)(b) (b) The producer agent does not take title to the producer milk, or to any processed dairy products made from the producer milk.
ATCP 100.16(1)(c) (c) The producer agent markets the producer milk under a written contract with each milk producer. The contract shall comply with sub. (2).
ATCP 100.16(1)(d) (d) The producer agent does not process, as a producer agent, more than 5 million pounds of producer milk in any month.
ATCP 100.16(1)(e) (e) The producer agent gives, to each recipient of producer milk marketed by the producer agent, a written invoice stating that the milk is producer milk not owned by the producer agent.
ATCP 100.16(1)(f) (f) The producer agent files a monthly producer agent report with the department, as provided under sub. (3).
ATCP 100.16 Note Note: Producer agents are regulated as milk contractors under ch. 126, Stats., regardless of whether they comply with sub. (1). But producer agents do not qualify for special treatment as “qualified producer agents" under s. 126.45 (3), Stats., nor may they file default claims under s. 126.70 (1), Stats., unless they comply with sub. (1).
ATCP 100.16(2) (2) Contract with milk producer. The contract under sub. (1) (c) shall be signed by the milk producer and the producer agent, and shall clearly specify the terms under which the producer agent receives, markets and accepts payment for milk on behalf of the producer. The contract shall clearly and conspicuously disclose all the following:
ATCP 100.16(2)(a) (a) That the producer agent does not take title to the producer's milk, or any dairy products made from that milk.
ATCP 100.16(2)(b) (b) That the producer agent receives payments on behalf of the producer, and holds them in trust for the producer.
ATCP 100.16(2)(c) (c) The terms and conditions of payment to the producer.
ATCP 100.16(2)(d) (d) The procedure by which the producer agent will receive payment on behalf of the producer and make payments to the producer, including any trust fund arrangement.
ATCP 100.16(2)(e) (e) The producer agent's compensation for serving as the producer's agent, and the method by which the producer agent will receive that compensation from the producer.
ATCP 100.16(2)(f) (f) The appropriate milk security disclosure statement under s. ATCP 100.20.
ATCP 100.16(3) (3) Monthly report. A producer agent who files a monthly report under sub. (1) (f) shall file the report on or before the 25 th day of the month. The report shall include all the following:
ATCP 100.16(3)(a) (a) The name and address of each person to whom the producer agent marketed, in the preceding month, producer milk that the producer agent procured in this state as a producer agent.
ATCP 100.16(3)(b) (b) The total pounds of producer milk that the producer agent marketed to each person under par. (a) in the preceding month.
ATCP 100.16(3)(c) (c) The total dollar value of producer milk that the producer agent marketed to each person under par. (a) in the preceding month.
ATCP 100.16(3)(d) (d) The producer agent's total gross payments to milk producers for producer milk that the producer agent marketed under par. (a) in the preceding month.
ATCP 100.16(4) (4) Exempt agent. Chapter 126, Stats., does not apply to a person who collects a producer's milk for delivery to a custom processor under s. ATCP 100.14, and who receives and markets the custom-processed dairy products for the producer, provided that all the following apply:
ATCP 100.16(4)(a) (a) The person does not handle more than 5 million pounds of producer milk in any month, does not process milk or dairy products, and does not otherwise operate as a milk contractor.
ATCP 100.16(4)(b) (b) The producer retains title to the milk and the processed dairy products made from the milk.
ATCP 100.16(4)(c) (c) The person has a written contract with the producer. The contract shall clearly and conspicuously disclose all the following:
ATCP 100.16(4)(c)1. 1. That the producer retains title to the milk and the dairy products made from the milk.
ATCP 100.16(4)(c)2. 2. That the producer's milk shipments are not secured under ch. 126, Stats.
ATCP 100.16(4)(d) (d) The person keeps a copy of the contract under par. (c) for at least 3 years after the contract ends, and makes it available to the department for inspection and copying upon request.
ATCP 100.16(4)(e) (e) The person submits to the department, by May 1 of each year, an affidavit certifying that the person qualifies as an exempt agent under this subsection.
ATCP 100.16 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; correction in (1) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register September 2004 No. 585; correction in (1) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666; correction in (1) (intro.) made under s. 13.92 (4) (b) 7., Stats., November 2018 No. 755.
ATCP 100.18 ATCP 100.18Marketing processed dairy products for milk producers. Chapter 126, Stats., does not apply to a person who markets only processed dairy products for milk producers, provided that the person does not procure, market or process raw producer milk.
ATCP 100.18 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.
ATCP 100.20 ATCP 100.20Disclosures to milk producers.
ATCP 100.20(1)(1)Disclosure required. A milk contractor shall make a disclosure under sub. (2) to every milk producer and producer agent from whom the milk contractor procures producer milk in this state. The milk contractor shall make the disclosure, in the form prescribed under sub. (2), in a written document given to the producer or producer agent. The disclosure shall be clear and conspicuous, and shall be set apart from every other writing. The milk contractor shall make the disclosure to the producer or producer agent at all of the following times:
ATCP 100.20(1)(a) (a) When the milk contractor first procures producer milk from that producer or producer agent.
ATCP 100.20(1)(b) (b) In June of each year in which the milk contractor procures milk from that producer or producer agent.
ATCP 100.20(1)(c) (c) When the milk contractor first procures producer milk from that producer or producer agent following a change in circumstances that requires a different disclosure statement under sub. (2).
ATCP 100.20(2) (2) Form of disclosure.
ATCP 100.20(2)(a)(a) Except as provided in pars. (b) to (e), the disclosure under sub. (1) shall consist of a verbatim copy of the following statement:
IMPORTANT NOTICE
[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security program. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of your allowed claim, and up to 75% of any additional amount. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 100.20(2)(b) (b) Except as provided in pars. (c) to (e), the disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor contributes to the fund and the milk contractor's estimated default exposure is greater than the sum of the maximum fund reimbursement amount plus any security amount the milk contractor has on file with the department:
IMPORTANT NOTICE
[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security Program. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of an allowed claim and up to 75% of any additional amount. However, our “estimated default exposure" exceeds available reimbursement funding, and we have not filed security to cover the difference, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 100.20(2)(c) (c) Except as provided in par. (d) or (e), the disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor voluntarily contributes to the fund under s. 126.45 (2), Stats., and has an estimated default exposure greater than the sum of the maximum fund reimbursement amount plus any security amount the milk contractor has on file with the department:
IMPORTANT NOTICE
[Name of milk contractor] voluntarily participates in Wisconsin's Agricultural Producer Security Program, even though our financial statements meet or exceed program standards (positive equity, a current ratio of at least 1.25 to 1.0, and a debt-to-equity ratio of no more than 2.0 to 1.0). If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of an allowed claim, and up to 75% of any additional amount. However, our “estimated default exposure" exceeds available reimbursement funding, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 100.20(2)(d) (d) The disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor is not required to contribute to the fund or file security with the department, and has not done so voluntarily:
IMPORTANT NOTICE
[Name of milk contractor] is licensed under Wisconsin's Agricultural Producer Security Program. Because our financial statements meet or exceed minimum requirements (positive equity, a current ratio of at least 1.25 to 1.0 and a debt-to-equity ratio of no more than 2.0 to 1.0), we are not required to contribute to the program or file security. The program will provide no compensation if we fail to pay you for milk. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 100.20(2)(e) (e) If a disclosure under sub. (1) is made on or before April 30, 2007, by a qualified producer agent who files security under s. 126.47 (3) (a) 3., Stats., the disclosure shall consist of a verbatim copy of the following statement:
ATCP 100.20 Note Note: Section 126.47 (3) (a) 3., Stats., was repealed by 2009 Wis. Act 296.
IMPORTANT NOTICE
[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security Program as a producer agent. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 20% of your allowed claim. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 100.20 Note Note: By its terms, this provision is no longer in effect.
ATCP 100.20 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; CR 04-030: r. (2) (e) 1. and 2., renum. (2) (e) 3. to 5. to be (2) (e) 1. to 3. Register September 2004 No. 585, eff. 10-1-04; corrections in (2) (a), (c) and (f) made under s. 13.93 (2m) (b) 7., Stats., Register September 2004 No. 585; CR 05-068: r. and recr. (2) Register April 2006 No. 604, eff. 5-1-06.
ATCP 100.22 ATCP 100.22Producer payroll report.
ATCP 100.22(1)(1)An applicant for an annual milk contractor license shall include, as part of the license application, the sworn and notarized statement required under s. 126.41 (6), Stats.
ATCP 100.22(2) (2)The statement under sub. (1) shall report, under s. 126.41 (6) (a), Stats., the gross amount that the applicant paid for producer milk procured in this state during the applicant's last completed fiscal year. If the applicant has not yet operated as a milk contractor, the applicant shall report the estimated gross amount that the applicant will pay for milk procured in the applicant's first completed fiscal year.
ATCP 100.22(3) (3)The statement under sub. (1) may, with the approval of the department, report either of the following in fulfillment of the reporting requirement under s. 126.41 (6) (b), Stats.:
ATCP 100.22(3)(a) (a) The largest gross amount that the applicant paid, for producer milk procured in this state, in any single month during the applicant's last completed fiscal year.
ATCP 100.22(3)(b) (b) The largest amount of unpaid milk payroll obligations that the milk contractor had at any time during the milk contractor's last completed fiscal year.
ATCP 100.22 Note Note: Under s. 126.47 (5m), Stats., a milk contractor who files security under s. 126.47, Stats., must immediately notify the department if, at any time, the milk contractor's unpaid milk payroll obligations exceed the amount last reported under sub. (3). Under s. 126.83, Stats., the department may require the milk contractor to provide additional information as necessary.
ATCP 100.22 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; CR 07-073: r. and recr. (3) Register December 2008 No. 636, eff. 1-1-09.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.