AB630-ASA1,7,2322 2. A contractor who files security with the department under sub. (8), except
23for a contractor who files security under sub. (8) (cm)
.
AB630-ASA1,8,3
13. A producer-owned cooperative or organization that procures farm products
2vegetables solely on a cooperative pooling basis from its producer owners, and that
3submits under sub. (4) a sworn and notarized statement to that effect.
AB630-ASA1, s. 24 4Section 24. 100.03 (5) (e) of the statutes is amended to read:
AB630-ASA1,8,115 100.03 (5) (e) (title) Certified or verified Audited or reviewed financial
6statement.
A financial statement under this subsection may par. (a) shall be a
7certified or verified
an audited financial statement or a reviewed financial
8statement, except that if during the year to which that financial statement pertains
9a contractor incurred total contractual obligations to producers, as reported under
10sub. (4) (a), of more than $250,000, the financial statement under par. (a) shall be
11certified an audited financial statement.
AB630-ASA1, s. 25 12Section 25. 100.03 (6) (a) of the statutes is amended to read:
AB630-ASA1,8,2013 100.03 (6) (a) Full payment required. Except as provided under par. (c) or (d),
14the department may not issue or renew a registration certificate under sub. (2)
15unless the contractor has submitted a statement under sub. (4m) that shows that the
16contractor has
paid all liabilities to producers that are due and payable before the
17date of application, as indicated by a sworn and notarized statement under sub. (4)
18(d)
January 31. Notwithstanding par. (b), a contractor shall make payment on
19delivery unless the contractor meets the minimum financial standards under sub.
20(7) or files security with the department under sub. (8).
AB630-ASA1, s. 26 21Section 26. 100.03 (6) (b) 1. of the statutes is amended to read:
AB630-ASA1,9,222 100.03 (6) (b) 1. If a procurement contract does not specify a payment date in
23writing, the contractor shall pay a liability to a producer by the 15th day of the month
24immediately following the month in which the producer tendered or delivered the

1farm products vegetables under the contract, or by an earlier date agreed upon
2between the parties.
AB630-ASA1, s. 27 3Section 27. 100.03 (6) (b) 3. of the statutes is amended to read:
AB630-ASA1,9,174 100.03 (6) (b) 3. By January 31 of each registration year, a contractor shall pay
5for all farm products vegetables that were delivered by producers on or before
6December 31 of that registration year. This requirement does not apply if a written
7contract specifying a later payment date was approved by a vote of producers who
8delivered farm products vegetables to the contractor during the preceding
9registration year. To obtain the approval of producers, a contractor shall give
10advance written notice to every eligible producer. The notice shall include a copy of
11the proposed contract and shall announce a meeting at which producers will be asked
12to vote on the proposed contract. The notice shall also include a mail ballot by which
13a producer may cast his or her vote without attending the meeting. Voting shall be
14by secret ballot. The proposed contract shall be approved by a majority of the
15producers who vote on the proposed contract. The contractor shall file a sworn
16statement with the department, on a form provided by the department, certifying the
17results of the balloting.
AB630-ASA1, s. 28 18Section 28. 100.03 (6) (b) 4. of the statutes is amended to read:
AB630-ASA1,9,2319 100.03 (6) (b) 4. If a producer tenders or delivers farm products vegetables to
20a contractor after December 31 of any registration year, the contractor shall pay the
21producer for the farm products vegetables by the 15th day of the month following the
22month in which the farm products vegetables were tendered or delivered, or within
2330 days
by the 30th day after tender or delivery , whichever is later.
AB630-ASA1, s. 29 24Section 29. 100.03 (7) (a) 1. of the statutes is amended to read:
AB630-ASA1,10,2
1100.03 (7) (a) 1. The contractor's A minimum ratio of current assets to current
2liabilities shall be at least of 1.2 to 1 1.0 on its annual financial statement.
AB630-ASA1, s. 30 3Section 30. 100.03 (7) (a) 2. of the statutes is repealed and recreated to read:
AB630-ASA1,10,54 100.03 (7) (a) 2. A minimum ratio of current assets to current liabilities of 1.0
5to 1.0 at all times of the year other than the end of the contractor's fiscal year.
AB630-ASA1, s. 31 6Section 31. 100.03 (7) (a) 3. of the statutes is created to read:
AB630-ASA1,10,87 100.03 (7) (a) 3. Equity equal to at least 20% of total assets on its annual
8financial statement and at least 10% at all other times.
AB630-ASA1, s. 32 9Section 32. 100.03 (7) (c) (intro.) of the statutes is amended to read:
AB630-ASA1,10,1210 100.03 (7) (c) Exemptions. (intro.) A Paragraph (a) does not apply to a
11contractor is not required to meet the financial standards under par. (a) if any of the
12following applies:
AB630-ASA1, s. 33 13Section 33. 100.03 (7) (c) 1. of the statutes is amended to read:
AB630-ASA1,10,1514 100.03 (7) (c) 1. The contractor makes payment on delivery for all farm
15products
vegetables obtained from producers.
AB630-ASA1, s. 34 16Section 34. 100.03 (8) (b) 6. of the statutes is repealed.
AB630-ASA1, s. 35 17Section 35. 100.03 (8) (bm) of the statutes is repealed.
AB630-ASA1, s. 36 18Section 36. 100.03 (8) (cm) of the statutes is created to read:
AB630-ASA1,10,2319 100.03 (8) (cm) Transitional security amounts. Notwithstanding par. (c), a
20contractor who does not meet the financial standards under sub. (7) but who does
21have a ratio of current assets to current liabilities of at least 1.2 to 1.0 on its annual
22financial statement and whose total assets exceed total liabilities shall file security
23in at least the following amounts for the license years indicated:
AB630-ASA1,11,3
11. For the first license year beginning after the effective date of this subdivision
2.... [revisor inserts date], 25% of the contractor's anticipated maximum liability to
3growers of vegetables.
AB630-ASA1,11,64 2. For the 2nd license year beginning after the effective date of this subdivision
5.... [revisor inserts date], 50% of the contractor's anticipated maximum liability to
6growers of vegetables.
AB630-ASA1, s. 37 7Section 37. 100.03 (8) (e) of the statutes is created to read:
AB630-ASA1,11,108 100.03 (8) (e) Prohibition. No contractor may assess a separate line item
9deduction from the payment to the grower to recover the cost of security filed under
10this section.
AB630-ASA1, s. 38 11Section 38. 100.03 (15) (title) of the statutes is amended to read:
AB630-ASA1,11,1212 100.03 (15) (title) Farm product Vegetable grading and tare.
AB630-ASA1, s. 39 13Section 39. 100.03 (15) (a) (intro.) of the statutes is amended to read:
AB630-ASA1,11,1714 100.03 (15) (a) Grading procedures and grade standards. (intro.) If under a
15procurement contract the amount received by the producer depends on the grade of
16the farm products vegetables, the farm products vegetables shall be graded in
17compliance with all of the following:
AB630-ASA1, s. 40 18Section 40. 100.03 (15) (c) of the statutes is amended to read:
AB630-ASA1,11,2019 100.03 (15) (c) Price-fixing not permitted. This subsection does not fix or
20regulate the price paid for any farm product vegetable.
AB630-ASA1, s. 41 21Section 41. 100.03 (18) of the statutes is amended to read:
AB630-ASA1,12,622 100.03 (18) Summary order requiring payment on delivery. If the department
23has reasonable grounds to believe that a contractor does not meet the minimum
24financial standards under sub. (7), and does not have adequate security on file under
25sub. (8), the department may issue a summary special order requiring the contractor

1to make payment on delivery for all farm products vegetables. A summary special
2order shall set forth the specific basis for the order. The order shall remain in effect
3until the contractor meets the financial standards under sub. (7) or files adequate
4security under sub. (8). A person adversely affected by a special order under this
5section shall be given a prompt hearing before the department upon request, under
6ch. 227.
AB630-ASA1, s. 42 7Section 42. 100.03 (19) (a) (intro.) of the statutes is amended to read:
AB630-ASA1,12,128 100.03 (19) (a) Grounds. (intro.) The department may summarily suspend the
9contractor's registration certificate when necessary to prevent clear and imminent
10harm to producers if the department has reasonable grounds to believe that a
11contractor has failed to make payment on delivery for farm products vegetables,
12procured from producers, contrary to any of the following:
AB630-ASA1, s. 43 13Section 43. Appropriation changes.
AB630-ASA1,12,19 14(1) Farm product producer security. In the schedule under section 20.005 (3)
15of the statutes for the appropriation to the department of agriculture, trade and
16consumer protection under section 20.115 (1) (gm) of the statutes, as affected by the
17acts of 1995, the dollar amount is decreased by $32,500 for fiscal year 1995-96 and
18the dollar amount is decreased by $32,500 for fiscal year 1996-97 to decrease funding
19for the purposes for which the appropriation is made.
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