AB635: Bill Text

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB635, s. 1 Section 1. 126.55 (4) of the statutes is amended to read:

AB635,2,7 126.55 (4) "Contributing vegetable contractor" means a vegetable contractor who is licensed under s. 126.56 (1), who either has paid one or more quarterly installments under s. 126.60 (6) or is required to contribute to the fund, but the first quarterly installment under s. 126.60 (6) is not yet due, who has not elected not to participate in the fund under s. 126.595 (1), and who is not disqualified under s. 126.59 (2).

AB635, s. 2 Section 2. 126.55 (10r) and (10t) of the statutes are created to read:

AB635,3,2 126.55 (10r) "Processing potato buyer" means a vegetable contractor who purchases processing potatoes and no other processing vegetables.

AB635,3,5 (10t) "Processing potatoes" means potatoes grown or sold for use in food processing, regardless of whether those potatoes are actually harvested or processed as food.

AB635, s. 3 Section 3. 126.56 (4) (f) of the statutes is created to read:

AB635,3,9 126.56 (4) (f) If the vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with s. 126.595 (1), a fee of $500 or another amount established by the department by rule.

AB635, s. 4 Section 4. 126.56 (6) (a) of the statutes is amended to read:

AB635,3,17 126.56 (6) (a) If the balance in the fund contributed by vegetable contractors exceeds $1,000,000 $825,000 on November 30 of any license year, the department shall credit 50% of the excess amount against fees charged under sub. (4) (b) to contributing vegetable contractors who file timely license renewal applications for the next license year. The department shall credit each contributing vegetable contractor on a prorated basis, in proportion to the total fees that the vegetable contractor has paid under sub. (4) (b) for the 4 preceding license years.

AB635, s. 5 Section 5. 126.57 (1) (b) 3. of the statutes is created to read:

AB635,3,20 126.57 (1) (b) 3. The vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with s. 126.595 (1).

AB635, s. 6 Section 6. 126.58 (1) (c) 3. of the statutes is created to read:

AB635,3,23 126.58 (1) (c) 3. The vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with s. 126.595 (1).

AB635, s. 7 Section 7. 126.59 (1) (d) of the statutes is created to read:

AB635,4,2 126.59 (1) (d) The vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with s. 126.595 (1).

AB635, s. 8 Section 8. 126.595 of the statutes is created to read:

AB635,4,6 126.595 Processing potato buyer optional nonparticipation. (1) Eligibility. A processing potato buyer may elect not to participate in the fund by doing all of the following:

AB635,4,9 (a) Submitting a notification of nonparticipation to the department by January 31 of each year or, for a new processing potato buyer, at the time of application for its first license.

AB635,4,11 (b) Certifying in a statement to the department that the processing potato buyer will not, in the next licensing year, enter into any of the following:

AB635,4,14 1. An unwritten contract with a vegetable producer in this state under which the processing potato buyer takes custody or control of processing potatoes more than 20 days before paying for the processing potatoes in full.

AB635,4,17 2. A written contract with a vegetable producer in this state under which the processing potato buyer takes custody or control of processing potatoes more than 30 days before paying for the processing potatoes in full.

AB635,4,20 (c) Certifying in a statement to the department that the processing potato buyer does not at the time of certification have any unpaid obligations to vegetable producers under any of the following:

AB635,4,23 1. An unwritten contract with a vegetable producer in this state under which the processing potato buyer takes custody or control of processing potatoes more than 20 days before paying for the processing potatoes in full.

AB635,5,3 2. A written contract with a vegetable producer in this state under which the processing potato buyer takes custody or control of processing potatoes more than 30 days before paying for the processing potatoes in full.

AB635,5,6 (d) Providing evidence to the department that the processing potato buyer has a license under the federal Perishable Agricultural Commodities Act, 7 USC 499a to 499t, that is in good standing.

AB635,5,18 (e) Certifying that it will disclose to all vegetable producers with whom the processing potato buyer contracts that the processing potato buyer does not participate in the fund by providing the following statement, in at least 10-point bold type, in each written contract for processed potatoes or, for unwritten contracts, in a written statement signed by the vegetable processor and the vegetable producer: "The undersigned processing potato buyer, as defined in s. 126.55 (10r), Wisconsin Statutes, does not participate in the Wisconsin agricultural producer security fund, established under s. 25.463, Wisconsin Statutes. As a result the producer does not have the security or other protections against nonpayment provided by that fund. The parties to this contract acknowledge that the Wisconsin Department of Agriculture, Trade and Consumer Protection and the State of Wisconsin cannot be held liable for any default under the contract between the parties."

AB635,5,23 (f) Maintaining documentation that every purchase of potatoes grown in this state for processing under contract with the processing potato buyer qualifies for trust protection under the federal Perishable Agricultural Commodities Act, 7 USC 499a to 499t, and that the vegetable producers' trust rights have been validly preserved.

AB635,6,2 (2) Resuming participation. (a) A processing potato buyer that has elected not to participate in the fund may rescind its election and may participate in the fund in accordance with the applicable provisions of this chapter, if all of the following apply:

AB635,6,7 1. The processing potato buyer obtains a surety bond in an amount sufficient to cover any potential default on any contracts entered into after the processing potato buyer begins to participate in the fund until the processing potato buyer provides financial information as required by the department and the department informs the processing potato buyer that a surety bond is no longer necessary.

AB635,6,9 2. The processing potato buyer provides to the department verification of the surety bond required in subd. 1. before beginning participation in the fund.

AB635,6,12 (b) A processing potato buyer that elects to participate in the fund under par. (a) shall provide financial information to the department as required by the department.

AB635,6,16 (c) No later than the 60th day after the day on which the processing potato buyer provides the financial information required by the department under par. (b), the department shall inform the processing potato buyer of the amount of any assessments due and of whether the surety bond is still necessary.

AB635,6,19 (d) Any obligations under a contract for the purchase of processing potatoes that are outstanding when a processing potato buyer elects to participate in the fund under par. (a) are not covered by the fund.

AB635,6,23 (3) Mergers. If a nonparticipating processing potato buyer merges with a processing potato buyer or other vegetable contractor who participates in the fund, the merged entity shall participate in the fund unless the merged entity complies with all of the conditions in sub. (1) (a) to (f).

AB635, s. 9 Section 9. 126.61 (1) (c) 3. of the statutes is created to read:

AB635,7,2 126.61 (1) (c) 3. The vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with s. 126.595 (1).

AB635, s. 10 Section 10. 126.71 (3) (a) 5. of the statutes is created to read:

AB635,7,6 126.71 (3) (a) 5. A default claim allowed against a vegetable contractor who is a processing potato buyer, as defined in s. 126.55 (10r), if the default claim is related to a default on an obligation described in s. 126.595 (2) (d).

AB635,7,7 (End)