LRBs0550/1
RCT:skg&kaf:km
1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
To 1995 ASSEMBLY BILL 630
March 5, 1996 - Offered by Representatives Ott, Klusman, Brancel, Albers,
Springer, Baldus, Reynolds and Wilder.
AB630-ASA1,1,11
1An Act to repeal 100.03 (1) (n), 100.03 (1)
(zp), 100.03 (8) (b) 6. and 100.03 (8)
2(bm);
to renumber and amend 100.03 (1) (e);
to amend 20.115 (1) (gm), 97.29
3(4), 100.03 (title), 100.03 (1) (a) (intro.), 100.03 (1) (f), 100.03 (1) (v) to (wm),
4100.03 (1) (zm), 100.03 (2) (a), 100.03 (3) (a) 2., 100.03 (3) (b), 100.03 (4) (a),
5100.03 (4) (c), 100.03 (4) (f), 100.03 (5) (a) 2., 100.03 (5) (b), 100.03 (5) (c), 100.03
6(5) (e), 100.03 (6) (a), 100.03 (6) (b) 1., 100.03 (6) (b) 3., 100.03 (6) (b) 4., 100.03
7(7) (a) 1., 100.03 (7) (c) (intro.), 100.03 (7) (c) 1., 100.03 (15) (title), 100.03 (15)
8(a) (intro.), 100.03 (15) (c), 100.03 (18) and 100.03 (19) (a) (intro.);
to repeal and
9recreate 100.03 (7) (a) 2.; and
to create 100.03 (1) (ym), 100.03 (1) (zs), 100.03
10(4m), 100.03 (5) (am), 100.03 (7) (a) 3., 100.03 (8) (cm) and 100.03 (8) (e) of the
11statutes;
relating to: fruit and vegetable producer security.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB630-ASA1,2,6
120.115
(1) (gm) (title)
Dairy trade regulation; dairy and farm product and
2vegetable producer security. The amounts in the schedule for the regulation of
farm
3product vegetable procurement under s. 100.03, of dairy plant financial condition
4under s. 100.06 and of dairy trade practices under s. 100.201. All moneys received
5under ss. 100.03 (3) (a) 3., 100.06 (9) and 100.201 (6) shall be credited to this
6appropriation.
AB630-ASA1,2,168
97.29
(4) (title)
Food processing plants buying farm products vegetables
9from producers. The department may not issue or renew a license to operate a food
10processing plant to any applicant who is a contractor, as defined in s. 100.03 (1) (f),
11unless the applicant has filed all financial information and any security that is
12required under s. 100.03. If an applicant has not filed all financial information and
13any security that is required under s. 100.03, the department may issue a conditional
14license under s. 93.06 (8) that prohibits the licensed operator from procuring
farm
15products vegetables from a producer or a producer's agent, but allows the operator
16to procure
farm products vegetables from other sources.
AB630-ASA1, s. 3
17Section
3. 100.03 (title) of the statutes is amended to read:
AB630-ASA1,2,19
18100.03 (title)
Farm product
Vegetable procurement; financial security;
19grading and tare.
AB630-ASA1, s. 4
20Section
4. 100.03 (1) (a) (intro.) of the statutes is amended to read:
AB630-ASA1,2,2221
100.03
(1) (a) (intro.) "Affiliate" means any of the following persons or business
22entities that procures
farm products vegetables for use by an operator:
AB630-ASA1, s. 5
23Section
5. 100.03 (1) (e) of the statutes is renumbered 100.03 (1) (bm) and
24amended to read:
AB630-ASA1,3,6
1100.03
(1) (bm) "
Certified
Audited financial statement" means a financial
2statement that, in the accompanying opinion of an independent certified public
3accountant or a public accountant holding a certificate of authority under ch. 442,
4fairly and in all material respects represents the financial position of the contractor,
5the results of the contractor's operations and the contractor's cash flows in
6conformity with generally accepted accounting principles.
AB630-ASA1,3,128
100.03
(1) (f) "Contractor" means a person who buys
farm products vegetables 9grown in this state from a producer, or who contracts with a producer to grow
farm
10products vegetables in this state, regardless of whether the contractor is located in
11this state or is engaged in food processing. "Contractor" does not include any of the
12following:
AB630-ASA1,3,1513
1. A person who procures
fruits and vegetables primarily for unprocessed fresh
14market use and is licensed under the federal perishable agricultural commodities
15act,
7 USC 499.
AB630-ASA1,3,1716
2. A restaurant or retail food establishment that procures
farm products 17vegetables solely for retail sale at the restaurant or retail food establishment.
AB630-ASA1, s. 8
19Section
8. 100.03 (1) (v) to (wm) of the statutes are amended to read:
AB630-ASA1,3,2320
100.03
(1) (v) "Payment on delivery" means cash payment of the full agreed
21price for a
farm product vegetable when the
farm product vegetable is tendered or
22delivered to a contractor, or cash payment of the full agreed price within 72 hours
23after delivery if the
farm product vegetable is graded.
AB630-ASA1,4,224
(vm) "Procurement contract" means an oral or written agreement between a
25contractor and a producer, under which the contractor buys a
farm product vegetable
1grown in this state from the producer or contracts with the producer to grow a
farm
2product vegetable in this state.
AB630-ASA1,4,43
(w) "Producer" means a person who produces and sells a
farm product 4vegetable, or who grows a
farm product vegetable under contract.
AB630-ASA1,4,65
(wm) "Producer claim" means a claim held by a producer for his or her
farm
6products vegetables.
AB630-ASA1, s. 9
7Section
9. 100.03 (1) (ym) of the statutes is created to read:
AB630-ASA1,4,98
100.03
(1) (ym) "Reviewed financial statement" means a financial statement,
9other than an audited financial statement, that is all of the following:
AB630-ASA1,4,1010
1. Sworn and notarized by the contractor.
AB630-ASA1,4,1311
2. Reviewed according to generally accepted accounting principles by an
12independent certified public accountant or a public accountant holding a certificate
13of authority under ch. 442.
AB630-ASA1,4,1715
100.03
(1) (zm) "Subsidiary" means a corporation or business entity that is
16owned, controlled or operated by an operator, and that procures a
farm product 17vegetable for use by the operator.
AB630-ASA1,4,2220
100.03
(1) (zs) "Vegetable" means any vegetable that is grown or sold for use
21in food processing, whether or not that vegetable is actually processed as food.
22"Vegetable" includes sweet corn, but does not include grain.
AB630-ASA1,5,224
100.03
(2) (a)
Requirement. No contractor may enter into a procurement
25contract with a producer unless the contractor holds a registration certificate from
1the department. A registration certificate expires on
March January 31 annually
2and is not transferable.
AB630-ASA1,5,84
100.03
(3) (a) 2. Unless the department by rule establishes a different fee, a fee
5of one cent for each $100 in the total contractual obligations reported under sub. (4)
6(a). The fee under this subdivision is not required if all
farm product vegetable 7grading is performed or supervised by the department under contract with the
8contractor.
AB630-ASA1,5,1710
100.03
(3) (b)
Surcharge for operating without a registration certificate. A
11contractor who applies for a registration certificate under sub. (2) shall pay a
12surcharge of $500 if the department determines that, within 365 days before
13submitting the application, the contractor procured a
farm product vegetable from
14a producer without a registration certificate in violation of sub. (2). Payment of the
15surcharge does not relieve the contractor of any other civil or criminal liability that
16results from the procurement of the
farm product
vegetable, but it does not constitute
17evidence of any law violation.
AB630-ASA1,5,2219
100.03
(4) (a) The contractor's total paid and unpaid contractual obligations to
20producers, for
farm products vegetables tendered or delivered, that have accrued
21during the registration year immediately preceding the registration year for which
22application is made.
AB630-ASA1,6,824
100.03
(4) (c) The contractor's anticipated maximum liability to producers
25during the registration year for which application is made. The application shall
1state if the contractor anticipates a maximum liability of zero. If so, the application
2also shall state whether the contractor anticipates a maximum liability of zero
3because the contractor plans to make cash payment on delivery under every
4procurement contract, or because the contractor plans to procure all
farm products 5vegetables from another contractor. A contractor shall immediately notify the
6department in writing if, at any time during the registration year, the contractor has
7reason to believe that the contractor's maximum liability will exceed the maximum
8liability previously anticipated and reported to the department.
AB630-ASA1,6,1310
100.03
(4) (f) Whether the contractor is a producer-owned cooperative or
11organization doing business on a cooperative pooling basis with its producer owners,
12and whether the producer-owned cooperative or organization procures any
farm
13products vegetables from producers who are not its producer owners.
AB630-ASA1,6,2215
100.03
(4m) Residual payment liability. As part of or in addition to the
16statement required by sub. (4), the contractor or officer of the contractor shall submit
17a sworn and notarized statement indicating whether the contractor has failed to pay
18any liability to a producer that became due and payable during the registration year
19ending January 31. The statement shall be submitted before February 5. The
20statement may not be submitted before February 1, except that the statement may
21be submitted at such earlier time as the contractor has paid all liabilities to
22producers that are due and payable on or before January 31.
AB630-ASA1, s. 20
23Section
20. 100.03 (5) (a) 2. of the statutes is amended to read:
