AB630,3,124
97.29
(4) (title)
Food processing plants buying farm products vegetables
5from producers. The department may not issue or renew a license to operate a food
6processing plant to any applicant who is a contractor, as defined in s. 100.03 (1) (f),
7unless the applicant has filed all financial information and any security that is
8required under s. 100.03. If an applicant has not filed all financial information and
9any security that is required under s. 100.03, the department may issue a conditional
10license under s. 93.06 (8) that prohibits the licensed operator from procuring
farm
11products vegetables from a producer or a producer's agent, but allows the operator
12to procure
farm products vegetables from other sources.
AB630, s. 3
13Section
3. 100.03 (title) of the statutes is amended to read:
AB630,3,15
14100.03 (title)
Farm product
Vegetable procurement; financial security;
15grading and tare.
AB630, s. 4
16Section
4. 100.03 (1) (a) (intro.) of the statutes is amended to read:
AB630,3,1817
100.03
(1) (a) (intro.) "Affiliate" means any of the following persons or business
18entities that procures
farm products vegetables for use by an operator:
AB630, s. 5
19Section
5. 100.03 (1) (e) of the statutes is renumbered 100.03 (1) (bm) and
20amended to read:
AB630,4,221
100.03
(1) (bm) "
Certified Audited financial statement" means a financial
22statement that, in the accompanying opinion of an independent certified public
23accountant or a public accountant holding a certificate of authority under ch. 442,
24fairly and in all material respects represents the financial position of the contractor,
1the results of the contractor's operations and the contractor's cash flows in
2conformity with generally accepted accounting principles.
AB630, s. 6
3Section
6. 100.03 (1) (f) of the statutes is amended to read:
AB630,4,84
100.03
(1) (f) "Contractor" means a person who buys
farm products vegetables 5grown in this state from a producer, or who contracts with a producer to grow
farm
6products vegetables in this state, regardless of whether the contractor is located in
7this state or is engaged in food processing. "Contractor" does not include any of the
8following:
AB630,4,119
1. A person who procures
fruits and vegetables primarily for unprocessed fresh
10market use and is licensed under the federal perishable agricultural commodities
11act,
7 USC 499.
AB630,4,1312
2. A restaurant or retail food establishment that procures
farm products 13vegetables solely for retail sale at the restaurant or retail food establishment.
AB630, s. 7
14Section
7. 100.03 (1) (n) of the statutes is repealed.
AB630, s. 8
15Section
8. 100.03 (1) (v) to (wm) of the statutes are amended to read:
AB630,4,1916
100.03
(1) (v) "Payment on delivery" means cash payment of the full agreed
17price for a
farm product vegetable when the
farm product vegetable is tendered or
18delivered to a contractor, or cash payment of the full agreed price within 72 hours
19after delivery if the
farm product vegetable is graded.
AB630,4,2320
(vm) "Procurement contract" means an oral or written agreement between a
21contractor and a producer, under which the contractor buys a
farm product vegetable 22grown in this state from the producer or contracts with the producer to grow a
farm
23product vegetable in this state.
AB630,4,2524
(w) "Producer" means a person who produces and sells a
farm product 25vegetable, or who grows a
farm product vegetable under contract.
AB630,5,2
1(wm) "Producer claim" means a claim held by a producer for his or her
farm
2products vegetables.
AB630, s. 9
3Section
9. 100.03 (1) (ym) of the statutes is created to read:
AB630,5,54
100.03
(1) (ym) "Reviewed financial statement" means a financial statement,
5other than an audited financial statement, that is all of the following:
AB630,5,66
1. Sworn and notarized by the contractor.
AB630,5,97
2. Reviewed according to generally accepted accounting principles by an
8independent certified public accountant or a public accountant holding a certificate
9of authority under ch. 442.
AB630, s. 10
10Section
10. 100.03 (1) (zm) of the statutes is amended to read:
AB630,5,1311
100.03
(1) (zm) "Subsidiary" means a corporation or business entity that is
12owned, controlled or operated by an operator, and that procures a
farm product 13vegetable for use by the operator.
AB630, s. 11
14Section
11. 100.03 (1)
(zp) of the statutes is repealed.
AB630, s. 12
15Section
12. 100.03 (1) (zs) of the statutes is created to read:
AB630,5,1816
100.03
(1) (zs) "Vegetable" means any vegetable that is grown or sold for use
17in food processing, whether or not that vegetable is actually processed as food.
18"Vegetable" includes sweet corn, but does not include grain.
AB630, s. 13
19Section
13. 100.03 (2) (a) of the statutes is amended to read:
AB630,5,2320
100.03
(2) (a)
Requirement. No contractor may enter into a procurement
21contract with a producer unless the contractor holds a registration certificate from
22the department. A registration certificate expires on
March January 31 annually
23and is not transferable.
AB630, s. 14
24Section
14. 100.03 (3) (a) 2. of the statutes is amended to read:
AB630,6,5
1100.03
(3) (a) 2. Unless the department by rule establishes a different fee, a fee
2of one cent for each $100 in the total contractual obligations reported under sub. (4)
3(a). The fee under this subdivision is not required if all
farm product vegetable 4grading is performed or supervised by the department under contract with the
5contractor.
AB630, s. 15
6Section
15. 100.03 (3) (b) of the statutes is amended to read:
AB630,6,147
100.03
(3) (b)
Surcharge for operating without a registration certificate. A
8contractor who applies for a registration certificate under sub. (2) shall pay a
9surcharge of $500 if the department determines that, within 365 days before
10submitting the application, the contractor procured a
farm product vegetable from
11a producer without a registration certificate in violation of sub. (2). Payment of the
12surcharge does not relieve the contractor of any other civil or criminal liability that
13results from the procurement of the
farm product
vegetable, but it does not constitute
14evidence of any law violation.
AB630, s. 16
15Section
16. 100.03 (4) (a) of the statutes is amended to read:
AB630,6,1916
100.03
(4) (a) The contractor's total paid and unpaid contractual obligations to
17producers, for
farm products vegetables tendered or delivered, that have accrued
18during the registration year immediately preceding the registration year for which
19application is made.
AB630, s. 17
20Section
17. 100.03 (4) (c) of the statutes is amended to read:
AB630,7,521
100.03
(4) (c) The contractor's anticipated maximum liability to producers
22during the registration year for which application is made. The application shall
23state if the contractor anticipates a maximum liability of zero. If so, the application
24also shall state whether the contractor anticipates a maximum liability of zero
25because the contractor plans to make cash payment on delivery under every
1procurement contract, or because the contractor plans to procure all
farm products 2vegetables from another contractor. A contractor shall immediately notify the
3department in writing if, at any time during the registration year, the contractor has
4reason to believe that the contractor's maximum liability will exceed the maximum
5liability previously anticipated and reported to the department.
AB630, s. 18
6Section
18. 100.03 (4) (f) of the statutes is amended to read:
AB630,7,107
100.03
(4) (f) Whether the contractor is a producer-owned cooperative or
8organization doing business on a cooperative pooling basis with its producer owners,
9and whether the producer-owned cooperative or organization procures any
farm
10products vegetables from producers who are not its producer owners.
AB630, s. 19
11Section
19. 100.03 (5) (a) 2. of the statutes is amended to read:
AB630,7,1712
100.03
(5) (a) 2. Except as provided under par. (c), a contractor shall file an
13annual financial statement with the department as a condition to the renewal or
14continuation of the contractor's registration certificate under sub. (2). An annual
15financial statement shall be filed by the 15th day of the 4th month commencing after
16the close of the contractor's fiscal year
, except that the department may, for cause,
17extend the deadline for filing the annual financial statement for up to 30 days.
AB630, s. 20
18Section
20. 100.03 (5) (am) of the statutes is created to read:
AB630,7,2119
100.03
(5) (am)
Interim statement. Except as provided in par. (c), a contractor
20shall file a interim statement as of the quarter that ends closest to November 30 with
21each application for renewal.
AB630, s. 21
22Section
21. 100.03 (5) (b) of the statutes is amended to read:
AB630,8,223
100.03
(5) (b) (title)
Additional or interim financial statement.
24Notwithstanding par. (c), the department may require a contractor to file
a an
25annual financial statement or interim statement at any time.
The department may
1require that a financial statement required under this paragraph be an audited
2financial statement or a reviewed financial statement.
AB630, s. 22
3Section
22. 100.03 (5) (c) of the statutes is amended to read:
AB630,8,54
100.03
(5) (c)
Exemptions. Paragraph (a) does Paragraphs (a) and (am) do not
5apply to any of the following:
AB630,8,96
1. A contractor who either plans to make payment on delivery for all
farm
7products vegetables tendered or delivered by producers, or to procure all
farm
8products vegetables from another contractor, and who submits a sworn and
9notarized statement to that effect under sub. (4) (c).
AB630,8,1110
2. A contractor who files security with the department under sub. (8)
, except
11for a contractor who files security under sub. (8) (cm).
AB630,8,1412
3. A producer-owned cooperative or organization that procures
farm products 13vegetables solely on a cooperative pooling basis from its producer owners, and that
14submits under sub. (4) a sworn and notarized statement to that effect.
AB630, s. 23
15Section
23. 100.03 (5) (e) of the statutes is amended to read:
AB630,8,2216
100.03
(5) (e) (title)
Certified or verified Audited or reviewed financial
17statement. A financial statement under
this subsection may par. (a) shall be
a
18certified or verified an audited financial statement or a reviewed financial
19statement, except that if during the year to which that financial statement pertains
20a contractor incurred total contractual obligations to producers, as reported under
21sub. (4) (a), of more than $250,000, the financial statement
under par. (a) shall be
22certified an audited financial statement.
AB630, s. 24
23Section
24. 100.03 (6) (b) 1. of the statutes is amended to read:
AB630,9,324
100.03
(6) (b) 1. If a procurement contract does not specify a payment date in
25writing, the contractor shall pay a liability to a producer by the 15th day of the month
1immediately following the month in which the producer tendered or delivered the
2farm products vegetables under the contract, or by an earlier date agreed upon
3between the parties.
AB630, s. 25
4Section
25. 100.03 (6) (b) 3. of the statutes is amended to read:
AB630,9,185
100.03
(6) (b) 3. By January
31 10 of each registration year, a contractor shall
6pay for all
farm products vegetables that were delivered by producers on or before
7December 31 of that registration year. This requirement does not apply if a written
8contract specifying a later payment date was approved by a vote of producers who
9delivered f
arm products vegetables to the contractor during the preceding
10registration year. To obtain the approval of producers, a contractor shall give
11advance written notice to every eligible producer. The notice shall include a copy of
12the proposed contract and shall announce a meeting at which producers will be asked
13to vote on the proposed contract. The notice shall also include a mail ballot by which
14a producer may cast his or her vote without attending the meeting. Voting shall be
15by secret ballot. The proposed contract shall be approved by a majority of the
16producers who vote on the proposed contract. The contractor shall file a sworn
17statement with the department, on a form provided by the department, certifying the
18results of the balloting.
AB630, s. 26
19Section
26. 100.03 (6) (b) 4. of the statutes is amended to read:
AB630,9,2420
100.03
(6) (b) 4. If a producer tenders or delivers
farm products vegetables to
21a contractor after December 31 of any registration year, the contractor shall pay the
22producer for the
farm products vegetables by the 15th day of the month following the
23month in which the
farm products vegetables were tendered or delivered, or
within
2430 days by the 30th day after tender or delivery
, whichever is later.
AB630, s. 27
25Section
27. 100.03 (7) (a) 1. of the statutes is amended to read:
AB630,10,2
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, s. 28
3Section
28. 100.03 (7) (a) 2. of the statutes is repealed and recreated to read:
AB630,10,54
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, s. 29
6Section
29. 100.03 (7) (a) 3. of the statutes is created to read:
AB630,10,77
100.03
(7) (a) 3. Equity equal to at least 25% of total assets at all times.
AB630, s. 30
8Section
30. 100.03 (7) (c) (intro.) of the statutes is amended to read:
AB630,10,119
100.03
(7) (c)
Exemptions. (intro.)
A Paragraph (a) does not apply to a 10contractor
is not required to meet the financial standards under par. (a) if any of the
11following applies:
AB630, s. 31
12Section
31. 100.03 (7) (c) 1. of the statutes is amended to read:
AB630,10,1413
100.03
(7) (c) 1. The contractor makes payment on delivery for all
farm
14products vegetables obtained from producers.
AB630, s. 32
15Section
32. 100.03 (8) (b) 6. of the statutes is repealed.
AB630, s. 33
16Section
33. 100.03 (8) (bm) of the statutes is repealed.
AB630, s. 34
17Section
34. 100.03 (8) (cm) of the statutes is created to read:
AB630,10,2218
100.03
(8) (cm)
Transitional security amounts. Notwithstanding par. (c), a
19contractor who does not meet the financial standards under sub. (7) but who does
20have a ratio of current assets to current liabilities of at least 1.2 to 1.0 on its annual
21financial statement and whose total assets exceed total liabilities shall file security
22in at least the following amounts for the license years indicated:
AB630,10,2523
1. For the first license year beginning after the effective date of this subdivision
24.... [revisor inserts date], 25% of the contractor's anticipated maximum liability to
25growers of vegetables.
AB630,11,3
12. For the 2nd license year beginning after the effective date of this subdivision
2.... [revisor inserts date], 50% of the contractor's anticipated maximum liability to
3growers of vegetables.
AB630, s. 35
4Section
35. 100.03 (15) (title) of the statutes is amended to read:
AB630,11,55
100.03
(15) (title)
Farm product Vegetable grading and tare.
AB630, s. 36
6Section
36. 100.03 (15) (a) (intro.) of the statutes is amended to read:
AB630,11,107
100.03
(15) (a)
Grading procedures and grade standards. (intro.) If under a
8procurement contract the amount received by the producer depends on the grade of
9the
farm products vegetables, the
farm products vegetables shall be graded in
10compliance with all of the following:
AB630, s. 37
11Section
37. 100.03 (15) (c) of the statutes is amended to read:
AB630,11,1312
100.03
(15) (c)
Price-fixing not permitted. This subsection does not fix or
13regulate the price paid for any
farm product vegetable.
AB630, s. 38
14Section
38. 100.03 (18) of the statutes is amended to read:
AB630,11,2415
100.03
(18) Summary order requiring payment on delivery. If the department
16has reasonable grounds to believe that a contractor does not meet the minimum
17financial standards under sub. (7), and does not have adequate security on file under
18sub. (8), the department may issue a summary special order requiring the contractor
19to make payment on delivery for all
farm products
vegetables. A summary special
20order shall set forth the specific basis for the order. The order shall remain in effect
21until the contractor meets the financial standards under sub. (7) or files adequate
22security under sub. (8). A person adversely affected by a special order under this
23section shall be given a prompt hearing before the department upon request, under
24ch. 227.
AB630, s. 39
25Section
39. 100.03 (19) (a) (intro.) of the statutes is amended to read:
AB630,12,5
1100.03
(19) (a)
Grounds. (intro.) The department may summarily suspend the
2contractor's registration certificate when necessary to prevent clear and imminent
3harm to producers if the department has reasonable grounds to believe that a
4contractor has failed to make payment on delivery for
farm products vegetables,
5procured from producers, contrary to any of the following: