AB349, s. 21 22Section 21. 126.31 (1) of the statutes is renumbered 126.31 (1) (a).
AB349, s. 22 23Section 22. 126.31 (1) (b) of the statutes is created to read:
AB349,10,3
1126.31 (1) (b) 1. In this paragraph, "estimated default exposure" means 20%
2of the current local market value of grain that the grain warehouse keeper holds in
3this state for others.
AB349,10,94 2. A grain warehouse keeper shall file security with the department, and
5maintain that security until the department releases it under sub. (8) (am), if the
6grain warehouse keeper files an annual financial statement under s. 126.28 (1) that
7shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio
8of more than 4.0 to 1.0 and the grain warehouse keeper's estimated default exposure
9is greater than the following amount:
AB349,10,1010 a. For the license year beginning on September 1, 2003, $18,000,000.
AB349,10,1111 b. For the license year beginning on September 1, 2004, $19,000,000.
AB349,10,1212 c. For a license year that begins on September 1, 2005, or later, $20,000,000.
AB349, s. 23 13Section 23. 126.31 (3) of the statutes is renumbered 126.31 (3) (a) and
14amended to read:
AB349,10,1815 126.31 (3) (a) A Except as provided in par. (b), a grain warehouse keeper who
16is required to file or maintain security under this section shall at all times maintain
17security equal to at least 20% of the current local market value of grain that the grain
18warehouse keeper holds in this state for others.
AB349, s. 24 19Section 24. 126.31 (3) (b) of the statutes is created to read:
AB349,10,2320 126.31 (3) (b) A grain warehouse keeper who is only required to file or maintain
21security under sub. (1) (b) shall at all times maintain security equal to the grain
22warehouse keeper's estimated default exposure, as defined in sub. (1) (b) 1., less the
23following amount:
AB349,10,2424 a. For the license year beginning on September 1, 2003, $18,000,000.
AB349,10,2525 b. For the license year beginning on September 1, 2004, $19,000,000.
AB349,11,1
1c. For a license year that begins on September 1, 2005, or later, $20,000,000.
AB349, s. 25 2Section 25. 126.31 (8) (a) (intro.) of the statutes is amended to read:
AB349,11,43 126.31 (8) (a) (intro.) The department may release security filed under sub. (1)
4(a) if any of the following applies:
AB349, s. 26 5Section 26. 126.31 (8) (am) of the statutes is created to read:
AB349,11,116 126.31 (8) (am) The department may release security filed under sub. (1) (b),
7except for any amount of security that the grain warehouse keeper is required to file
8because sub. (1) (a) applies to the grain warehouse keeper, if the grain warehouse
9keeper files 2 consecutive annual financial statements under s. 126.28 showing that
10the grain warehouse keeper no longer has negative equity, a current ratio of less than
111.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.
AB349, s. 27 12Section 27. 126.45 (3) (a) of the statutes is amended to read:
AB349,11,1713 126.45 (3) (a) A milk contractor who is required to file security under s. 126.47
14(1) (a) is disqualified from the fund until the department releases that security under
15s. 126.47 (7) (a). This paragraph does not apply, during the period beginning on May
161, 2002, and ending on April 30, 2007, to a qualified producer agent who files security
17under s. 126.47 (3) (c) (a) 3.
AB349, s. 28 18Section 28. 126.45 (3) (c) 3. and 4. of the statutes are amended to read:
AB349,11,2219 126.45 (3) (c) 3. Failure to reimburse the department, within 60 days after the
20department issues a reimbursement demand under s. 126.73 (1), for the full amount
21that the department pays to claimants under s. 126.72 (1) or under s. 126.72 (2) with
22the proceeds of a loan under s. 126.06 (1) (b)
because of that milk contractor's default.
AB349,12,223 4. Failure to reimburse a bond surety, within 60 days after the bond surety
24issues a reimbursement demand under s. 126.73 (2), for the full amount that the

1surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants
2affected by that milk contractor's default.
AB349, s. 29 3Section 29. 126.46 (1) (intro.) of the statutes is amended to read:
AB349,12,74 126.46 (1) General. (intro.) A contributing milk contractor shall pay an
5annual fund assessment for each license year. The Except as provided in sub. (5m),
6the
assessment equals $20 or the sum of the following, whichever is greater, unless
7the department by rule specifies a different assessment:
AB349, s. 30 8Section 30. 126.46 (2) (c) of the statutes is amended to read:
AB349,12,139 126.46 (2) (c) If Except as provided in par. (e), if the milk contractor has filed
10an annual financial statement under s. 126.44 and that financial statement shows
11a current ratio of less than or equal to 1.05 to 1.0, the milk contractor's current ratio
12assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied
13by 0.1201478.
AB349, s. 31 14Section 31. 126.46 (2) (e) of the statutes is amended to read:
AB349,12,2215 126.46 (2) (e) If the milk contractor has not filed an annual financial statement
16under s. 126.44 and the milk contractor
procures producer milk in this state solely
17as a producer agent and the milk contractor has not filed an annual financial
18statement under s. 126.44 or has filed an annual financial statement that shows a
19current ratio of less than or equal to 1.05 to 1.0
, the milk contractor's current ratio
20assessment rate is 0.00025, except that, for the milk contractor's 5th or higher
21consecutive full license year of participation in the fund, the milk contractor's
22current ratio assessment rate is 0.000175.
AB349, s. 32 23Section 32. 126.46 (4) (c) of the statutes is amended to read:
AB349,13,324 126.46 (4) (c) If Except as provided in par. (e), if the milk contractor has filed
25an annual financial statement under s. 126.44 and that financial statement shows

1negative equity or a debt to equity ratio of at least 3.1 to 1.0, the milk contractor's
2debt to equity ratio assessment rate equals the debt to equity ratio assessment factor
3in sub. (5) (b) multiplied by 0.8146917.
AB349, s. 33 4Section 33. 126.46 (4) (e) of the statutes is amended to read:
AB349,13,125 126.46 (4) (e) If the milk contractor has not filed an annual financial statement
6under s. 126.44 and the milk contractor
procures producer milk in this state solely
7as a producer agent and the milk contractor has not filed an annual financial
8statement under s. 126.44 or has filed an annual financial statement that shows
9negative equity or a debt to equity ratio of at least 3.1 to 1.0
, the milk contractor's
10debt to equity ratio assessment rate is 0.00025, except that, for the milk contractor's
115th or higher consecutive full license year of participation in the fund, the milk
12contractor's debt to equity ratio assessment rate is 0.000175.
AB349, s. 34 13Section 34. 126.46 (5m) of the statutes is created to read:
AB349,13,1714 126.46 (5m) Reduced assessment for certain milk contractors filing
15security.
If a milk contractor files security under s. 126.47 (1) (b), the milk
16contractor's assessment is the amount determined under sub. (1) reduced by an
17amount determined as follows:
AB349,13,2018 (a) Divide the amount of security that the milk contractor is required to file as
19determined under s. 126.47 (3) (b) by the amount of the milk contractor's estimated
20default exposure, as defined in s. 126.47 (1) (b) 1.
AB349,13,2221 (b) Multiply the amount of the assessment determined under sub. (1) by the
22amount determined under par. (a).
AB349, s. 35 23Section 35. 126.47 (1) of the statutes is renumbered 126.47 (1) (a).
AB349, s. 36 24Section 36. 126.47 (1) (b) of the statutes is created to read:
AB349,14,2
1126.47 (1) (b) 1. In this paragraph, "estimated default exposure" means 75%
2of the amount last reported under s. 126.41 (6) (b) or (9).
AB349,14,83 2. A milk contractor shall file security with the department, and maintain that
4security until the department releases it under sub. (7) (am), if the milk contractor
5files an annual financial statement under s. 126.44 (1) that shows negative equity,
6a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 2.0 to
71.0 and the milk contractor's estimated default exposure is greater than the
8following amount:
AB349,14,99 a. For the license year beginning on May 1, 2003, $18,000,000.
AB349,14,1010 b. For the license year beginning on May 1, 2004, $19,000,000.
AB349,14,1111 c. For a license year that begins on May 1, 2005, or later, $20,000,000.
AB349, s. 37 12Section 37. 126.47 (3) of the statutes is renumbered 126.47 (3) (a), and 126.47
13(3) (a) (intro.), 1. and 2. (intro.), as renumbered, are amended to read:
AB349,14,1614 126.47 (3) (a) (intro.) A Except as provided in par. (b), a milk contractor who
15is required to file or maintain security under this section shall at all times maintain
16the following amount of security:
AB349,14,1817 1. Except as provided in par. (b) or (c) subd. 2. or 3., security equal to at least
1875% of the amount last reported under s. 126.41 (6) (b) or (9).
AB349,14,2119 2. (intro.) Except as provided in par. (c) subd. 3., for a milk contractor who
20procures milk in this state solely as a qualified producer agent, security equal to at
21least the following amounts:
AB349, s. 38 22Section 38. 126.47 (3) (b) of the statutes is created to read:
AB349,14,2523 126.47 (3) (b) A milk contractor who is only required to file or maintain security
24under sub. (1) (b) shall at all times maintain security equal to the milk contractor's
25estimated default exposure, as defined in sub. (1) (b) 1., less the following amount:
AB349,15,1
1a. For the license year beginning on May 1, 2003, $18,000,000.
AB349,15,22 b. For the license year beginning on May 1, 2004, $19,000,000.
AB349,15,33 c. For a license year that begins on May 1, 2005, or later, $20,000,000.
AB349, s. 39 4Section 39. 126.47 (7) (a) (intro.) of the statutes is amended to read:
AB349,15,65 126.47 (7) (a) (intro.) The department may release security filed under sub. (1)
6(a) if any of the following applies:
AB349, s. 40 7Section 40. 126.47 (7) (am) of the statutes is created to read:
AB349,15,138 126.47 (7) (am) The department may release security filed under sub. (1) (b),
9except for any amount of security that the milk contractor is required to file because
10sub. (1) (a) applies to the milk contractor, if the milk contractor files 2 consecutive
11annual financial statements under s. 126.44 showing that the milk contractor no
12longer has negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity
13ratio of more than 2.0 to 1.0.
AB349, s. 41 14Section 41. 126.59 (2) (c) 3. and 4. of the statutes are amended to read:
AB349,15,1915 126.59 (2) (c) 3. Failure to reimburse the department, within 60 days after the
16department issues a reimbursement demand under s. 126.73 (1), for the full amount
17that the department pays to claimants under s. 126.72 (1) or under s. 126.72 (2) with
18the proceeds of a loan under s. 126.06 (1) (b)
because of that vegetable contractor's
19default.
AB349,15,2320 4. Failure to reimburse a bond surety, within 60 days after the bond surety
21issues a reimbursement demand under s. 126.73 (2), for the full amount that the
22surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants
23affected by that vegetable contractor's default.
AB349, s. 42 24Section 42. 126.60 (1) (intro.) of the statutes is amended to read:
AB349,16,4
1126.60 (1) General. (intro.) A contributing vegetable contractor shall pay an
2annual fund assessment for each license year. The Except as provided in sub. (5m),
3the
assessment equals $20 or the sum of the following, whichever is greater, unless
4the department by rule specifies a different assessment:
AB349, s. 43 5Section 43. 126.60 (5m) of the statutes is created to read:
AB349,16,96 126.60 (5m) Reduced assessment for certain vegetable contractors filing
7security.
If a vegetable contractor files security under s. 126.61 (1) (bm), the
8vegetable contractor's assessment is the amount determined under sub. (1) reduced
9by an amount determined as follows:
AB349,16,1210 (a) Divide the amount of security that the vegetable contractor is required to
11file as determined under s. 126.61 (3) (b) by the amount of the vegetable contractor's
12estimated default exposure, as defined in s. 126.61 (1) (bm) 1.
AB349,16,1413 (b) Multiply the amount of the assessment determined under sub. (1) by the
14amount determined under par. (a).
AB349, s. 44 15Section 44. 126.61 (1) (bm) of the statutes is created to read:
AB349,16,1716 126.61 (1) (bm) 1. In this paragraph, "estimated default exposure" means the
17sum of the following:
AB349,16,1918 a. Seventy-five percent of the amount last reported under s. 126.56 (9) (b) or
19(12) (a).
AB349,16,2120 b. The full amount of the unpaid deferred contract obligations last reported
21under s. 126.56 (9) (e) or (12) (b).
AB349,17,222 2. Except as provided in par. (c), a vegetable contractor shall file security with
23the department, and maintain that security until the department releases it under
24sub. (7) (bm), if the vegetable contractor files an annual financial statement under
25s. 126.58 (1) that shows negative equity, a current ratio of less than 1.25 to 1.0, or a

1debt to equity ratio of more than 4.0 to 1.0 and the vegetable contractor's estimated
2default exposure is greater than the following amount:
AB349,17,33 a. For the license year beginning on February 1, 2003, $18,000,000.
AB349,17,44 b. For the license year beginning on February 1, 2004, $19,000,000.
AB349,17,55 c. For a license year that begins on February 1, 2005, or later, $20,000,000.
AB349, s. 45 6Section 45. 126.61 (1) (c) (intro.) of the statutes is amended to read:
AB349,17,87 126.61 (1) (c) (intro.) A vegetable contractor is not required to file security
8under par. (a) or (b) this subsection if any of the following applies:
AB349, s. 46 9Section 46. 126.61 (3) of the statutes is renumbered 126.61 (3) (a), and 126.61
10(3) (a) (intro.) and 1., as renumbered, are amended to read:
AB349,17,1311 126.61 (3) (a) (intro.) A Except as provided in par. (b), a vegetable contractor
12who is required to file or maintain security under this section shall, at all times,
13maintain security that is at least equal to the sum of the following:
AB349,17,1614 1. Seventy-five percent of the amount last reported under s. 126.56 (9) (b) or
15(12) (a), except that this amount is not required of a contributing vegetable contractor
16after May 1, 2002.
AB349, s. 47 17Section 47. 126.61 (3) (b) of the statutes is created to read:
AB349,17,2118 126.61 (3) (b) A vegetable contractor who is only required to file or maintain
19security under sub. (1) (bm) shall at all times maintain security equal to the
20vegetable contractor's estimated default exposure, as defined in sub. (1) (bm) 1., less
21the following amount:
AB349,17,2222 1. For the license year beginning on February 1, 2003, $18,000,000.
AB349,17,2323 2. For the license year beginning on February 1, 2004, $19,000,000.
AB349,17,2424 3. For a license year that begins on February 1, 2005, or later, $20,000,000.
AB349, s. 48 25Section 48. 126.61 (7) (a) (intro.) of the statutes is amended to read:
AB349,18,4
1126.61 (7) (a) (intro.) The department may release security filed under sub. (1)
2(a), except for any amount of security that the vegetable contractor is required to file
3because sub. (1) (b) or (bm) applies to the vegetable contractor, if any of the following
4applies:
AB349, s. 49 5Section 49. 126.61 (7) (b) (intro.) of the statutes is amended to read:
AB349,18,96 126.61 (7) (b) (intro.) The department may release security filed under sub. (1)
7(b), except for any amount of security that the vegetable contractor is required to file
8because sub. (1) (a) or (bm) applies to the vegetable contractor, if any of the following
9applies:
AB349, s. 50 10Section 50. 126.61 (7) (bm) of the statutes is created to read:
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