AB635, s. 4 10Section 4. 126.56 (6) (a) of the statutes is amended to read:
AB635,3,1711 126.56 (6) (a) If the balance in the fund contributed by vegetable contractors
12exceeds $1,000,000 $825,000 on November 30 of any license year, the department
13shall credit 50% of the excess amount against fees charged under sub. (4) (b) to
14contributing vegetable contractors who file timely license renewal applications for
15the next license year. The department shall credit each contributing vegetable
16contractor on a prorated basis, in proportion to the total fees that the vegetable
17contractor has paid under sub. (4) (b) for the 4 preceding license years.
AB635, s. 5 18Section 5. 126.57 (1) (b) 3. of the statutes is created to read:
AB635,3,2019 126.57 (1) (b) 3. The vegetable contractor is a processing potato buyer who has
20elected not to participate in the fund in accordance with s. 126.595 (1).
AB635, s. 6 21Section 6. 126.58 (1) (c) 3. of the statutes is created to read:
AB635,3,2322 126.58 (1) (c) 3. The vegetable contractor is a processing potato buyer who has
23elected not to participate in the fund in accordance with s. 126.595 (1).
AB635, s. 7 24Section 7. 126.59 (1) (d) of the statutes is created to read:
AB635,4,2
1126.59 (1) (d) The vegetable contractor is a processing potato buyer who has
2elected not to participate in the fund in accordance with s. 126.595 (1).
AB635, s. 8 3Section 8. 126.595 of the statutes is created to read:
AB635,4,6 4126.595 Processing potato buyer optional nonparticipation. (1)
5Eligibility. A processing potato buyer may elect not to participate in the fund by
6doing all of the following:
AB635,4,97 (a) Submitting a notification of nonparticipation to the department by January
831 of each year or, for a new processing potato buyer, at the time of application for
9its first license.
AB635,4,1110 (b) Certifying in a statement to the department that the processing potato
11buyer will not, in the next licensing year, enter into any of the following:
AB635,4,1412 1. An unwritten contract with a vegetable producer in this state under which
13the processing potato buyer takes custody or control of processing potatoes more than
1420 days before paying for the processing potatoes in full.
AB635,4,1715 2. A written contract with a vegetable producer in this state under which the
16processing potato buyer takes custody or control of processing potatoes more than 30
17days before paying for the processing potatoes in full.
AB635,4,2018 (c) Certifying in a statement to the department that the processing potato
19buyer does not at the time of certification have any unpaid obligations to vegetable
20producers under any of the following:
AB635,4,2321 1. An unwritten contract with a vegetable producer in this state under which
22the processing potato buyer takes custody or control of processing potatoes more than
2320 days before paying for the processing potatoes in full.
AB635,5,3
12. A written contract with a vegetable producer in this state under which the
2processing potato buyer takes custody or control of processing potatoes more than 30
3days before paying for the processing potatoes in full.
AB635,5,64 (d) Providing evidence to the department that the processing potato buyer has
5a license under the federal Perishable Agricultural Commodities Act, 7 USC 499a to
6499t, that is in good standing.
AB635,5,187 (e) Certifying that it will disclose to all vegetable producers with whom the
8processing potato buyer contracts that the processing potato buyer does not
9participate in the fund by providing the following statement, in at least 10-point bold
10type, in each written contract for processed potatoes or, for unwritten contracts, in
11a written statement signed by the vegetable processor and the vegetable producer:
12"The undersigned processing potato buyer, as defined in s. 126.55 (10r), Wisconsin
13Statutes, does not participate in the Wisconsin agricultural producer security fund,
14established under s. 25.463, Wisconsin Statutes. As a result the producer does not
15have the security or other protections against nonpayment provided by that fund.
16The parties to this contract acknowledge that the Wisconsin Department of
17Agriculture, Trade and Consumer Protection and the State of Wisconsin cannot be
18held liable for any default under the contract between the parties."
AB635,5,2319 (f) Maintaining documentation that every purchase of potatoes grown in this
20state for processing under contract with the processing potato buyer qualifies for
21trust protection under the federal Perishable Agricultural Commodities Act, 7 USC
22499a
to 499t, and that the vegetable producers' trust rights have been validly
23preserved.
AB635,6,2 24(2) Resuming participation. (a) A processing potato buyer that has elected not
25to participate in the fund may rescind its election and may participate in the fund

1in accordance with the applicable provisions of this chapter, if all of the following
2apply:
AB635,6,73 1. The processing potato buyer obtains a surety bond in an amount sufficient
4to cover any potential default on any contracts entered into after the processing
5potato buyer begins to participate in the fund until the processing potato buyer
6provides financial information as required by the department and the department
7informs the processing potato buyer that a surety bond is no longer necessary.
AB635,6,98 2. The processing potato buyer provides to the department verification of the
9surety bond required in subd. 1. before beginning participation in the fund.
AB635,6,1210 (b) A processing potato buyer that elects to participate in the fund under par.
11(a) shall provide financial information to the department as required by the
12department.
AB635,6,1613 (c) No later than the 60th day after the day on which the processing potato
14buyer provides the financial information required by the department under par. (b),
15the department shall inform the processing potato buyer of the amount of any
16assessments due and of whether the surety bond is still necessary.
AB635,6,1917 (d) Any obligations under a contract for the purchase of processing potatoes
18that are outstanding when a processing potato buyer elects to participate in the fund
19under par. (a) are not covered by the fund.
AB635,6,23 20(3) Mergers. If a nonparticipating processing potato buyer merges with a
21processing potato buyer or other vegetable contractor who participates in the fund,
22the merged entity shall participate in the fund unless the merged entity complies
23with all of the conditions in sub. (1) (a) to (f).
AB635, s. 9 24Section 9. 126.61 (1) (c) 3. of the statutes is created to read:
AB635,7,2
1126.61 (1) (c) 3. The vegetable contractor is a processing potato buyer who has
2elected not to participate in the fund in accordance with s. 126.595 (1).
AB635, s. 10 3Section 10. 126.71 (3) (a) 5. of the statutes is created to read:
AB635,7,64 126.71 (3) (a) 5. A default claim allowed against a vegetable contractor who is
5a processing potato buyer, as defined in s. 126.55 (10r), if the default claim is related
6to a default on an obligation described in s. 126.595 (2) (d).
AB635,7,77 (End)
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