100.03(7)(a)1.
1. A minimum ratio of current assets to current liabilities of 1.2 to 1.0 on its annual financial statement.
100.03(7)(a)2.
2. A minimum ratio of current assets to current liabilities of 1.0 to 1.0 at all times of the year other than the end of the contractor's fiscal year.
100.03(7)(a)3.
3. Equity equal to at least 20% of total assets on its annual financial statement and at least 10% at all other times.
100.03(7)(b)
(b)
Notification of changes. A contractor shall immediately notify the department if the contractor knows or has reason to know that the financial standards under
par. (a) are no longer being met.
100.03(7)(c)
(c)
Exemptions. Paragraph (a) does not apply to a contractor if any of the following applies:
100.03(7)(c)1.
1. The contractor makes payment on delivery for all vegetables obtained from producers.
100.03(7)(c)3.
3. The contractor is a producer-owned cooperative organization doing business solely on a cooperative pooling basis with its producer owners.
100.03(8)(a)(a)
Requirement. A contractor shall file security with the department under this subsection unless one or more of the following apply:
100.03(8)(a)1.
1. The contractor makes payment on delivery for all farm products obtained from producers.
100.03(8)(a)2.
2. The contractor meets the minimum financial standards under
sub. (7).
100.03(8)(a)3.
3. The contractor is a producer-owned cooperative or organization doing business solely on a cooperative pooling basis with its producer owners.
100.03(8)(b)
(b)
Form of security. Security filed with the department under this subsection shall be in one or more of the following forms:
100.03(8)(b)1.
1. A continuous surety bond payable to the department on a form approved by the department and endorsed by a surety company licensed to do business in this state.
100.03(8)(b)3.
3. Stocks, bonds or other marketable securities at current market value.
100.03(8)(b)4.
4. Irrevocable bank letters of credit issued for a term of at least 6 months beyond the date on which final payment is due the producers.
100.03(8)(b)5.
5. Personal surety bonds or other 3rd-party guarantees that are supported by security under
subd. 2. or
3.
100.03(8)(bg)
(bg) Department custody of security. The department or the department's agent shall hold under custody any of the forms of security filed under
par. (b) 1. to
5.
100.03(8)(c)
(c)
Amount of security. Security under this subsection shall be in an amount equal to at least 75% of the contractor's anticipated maximum liability during the registration year for which application is made.
100.03(8)(cm)
(cm)
Transitional security amounts. Notwithstanding
par. (c), a contractor who does not meet the financial standards under
sub. (7) but who does have a ratio of current assets to current liabilities of at least 1.2 to 1.0 on its annual financial statement and whose total assets exceed total liabilities shall file security in at least the following amounts for the license years indicated:
100.03(8)(cm)1.
1. For the first license year beginning after July 11, 1996, 25% of the contractor's anticipated maximum liability to growers of vegetables.
100.03(8)(cm)2.
2. For the 2nd license year beginning after July 11, 1996, 50% of the contractor's anticipated maximum liability to growers of vegetables.
100.03(8)(d)
(d)
Release of security. Security filed under this subsection may be released only if one of the following occurs:
100.03(8)(d)1.
1. The contractor achieves and maintains for 2 consecutive registration years the minimum financial standards under
sub. (7).
100.03(8)(d)2.
2. The contractor demonstrates to the department's satisfaction that the contractor is able to pay liabilities to producers when due because of a substantial reduction in maximum liability or other reasons.
100.03(8)(e)
(e)
Prohibition. No contractor may assess a separate line item deduction from the payment to the grower to recover the cost of security filed under this section.
100.03(9)
(9) Producer claims; default proceedings. 100.03(9)(a)(a)
Filing claims. If a producer claims that a contractor has failed to pay a liability to that producer when due, the producer may file a written claim with the department. Upon receipt of a producer claim, or other evidence of default on the part of a contractor, the department may initiate a default proceeding under this subsection. Before initiating a default proceeding, the department may inspect the contractor's records under
sub. (16), and conduct any investigation that it considers appropriate.
100.03(9)(b)
(b)
Initiating default proceeding; order to producer claimants. To initiate a default proceeding, the department shall issue an order requiring all interested producers to file verified proofs of claim with the department before a specified date or be barred from participating in any recovery obtained by the department. Notice of the order shall be published as follows:
100.03(9)(b)1.
1. By posting a copy of the order in a prominent location at each place of business in this state operated by the contractor.
100.03(9)(b)2.
2. By mailing a copy of the order to the contractor, and to the trustee or surety, if any.
100.03(9)(b)3.
3. By publishing the contents of the order as a class 3 notice under
ch. 985. The date of the last insertion of the class 3 notice under
ch. 985 shall be not less than 30 days before the deadline date for filing claims.
100.03(9)(b)4.
4. If based on the contractor's records or other information the department obtains the names and addresses of other producers who appear to have an unpaid claim against the contractor, by mailing a copy of the order or equivalent notice to each of those producers. In its notice, the department may indicate the amount of the producer's apparent claim, and ask the producer to verify or correct that claim on or before the claim filing deadline.
100.03(9)(b)5.
5. By any additional method which the department considers necessary and appropriate.
100.03(9)(c)
(c)
Audit; proposed order. If a default proceeding is initiated, the department shall audit producer claims filed with the department and shall issue a proposed order allowing or disallowing claims. The proposed order shall be based on proposed findings of fact and conclusions of law which shall accompany the proposed order. A copy of the proposed order shall be mailed to the contractor, to the trustee or surety, if any, and to every producer who filed a claim in the proceeding.
100.03(9)(d)
(d)
Untimely claims disallowed. Claims filed after the deadline date specified under
par. (b) shall be disallowed unless the department waives the deadline date for good cause shown. A claim shall be disallowed if payment was due more than 60 days before the date on which the first written notice of default was received by the department.
100.03(9)(e)
(e)
Notice and hearing. The department shall hold a public hearing on its proposed order under
par. (c). A notice of hearing shall be issued to each person who is required to receive a copy of that order. The notice of hearing shall comply with
s. 227.44. The notice of hearing may require affected parties to file objections to the proposed order, if any, in writing before the date of hearing. The hearing examiner may hold a prehearing conference before the hearing, and may reschedule or continue the hearing as necessary. The hearing and related proceedings shall be conducted under
ch. 227.
100.03(9)(f)
(f)
Final order after hearing. Before issuing its final decision and order, the department shall follow the procedure prescribed under
s. 227.46, except that if after the hearing under
par. (e) there are no objections to the proposed order under
par. (c) the department may adopt the proposed order as the final decision and order of the department, without further notice or hearing.
100.03(9)(g)
(g)
Interest on claims. If the department's proposed or final order allows a producer claim, the order shall also require the contractor to pay interest on the claim, at a rate determined by the department by rule, computed from the date on which payment was first due.
100.03(10)
(10) Payment of secured claims. If the department issues a final order allowing producer claims under
sub. (9), the department may convert any security held by the department under
sub. (8) and may apply the proceeds to pay the allowed claims. The department shall distribute available funds to the producer claimants according to the final order allowing claims, on a proportionate basis according to the amount of each producer's allowed claim. If funds exceed allowed claims, the excess shall be returned to the person who filed the security with the department.
100.03(11)
(11) Department may collect producer claims. The department may demand and receive payment of claims allowed under
sub. (9) on behalf of producers and may commence an action in court to recover allowed claims on behalf of producers. Any amounts recovered by the department shall be distributed to represented producer claimants on a proportionate basis, according to the amount of each producer's allowed claim. The department may settle any producer claim with the consent of the producer and may decline to represent a producer who does not agree to a settlement recommended by the department. This subsection does not prohibit any producer from proceeding independently, under
sub. (12) or
(20), to recover an unpaid claim.
100.03(12)
(12) Demand for payment; judgment lien. If the department issues a final order allowing producer claims under
sub. (9), the department or any producer may demand payment of an allowed claim from the contractor, and from any other person who is obligated under the department's order. If the contractor does not pay the claim within 30 days after the demand is served on the contractor, the department or producer may file the department's final order with the clerk of circuit court in any county of this state. The clerk of circuit court shall enter the order in the judgment and lien docket. Upon being entered, the order becomes a judgment lien against the real property, in that county, of the contractor or person obligated under the order.
100.03(13)
(13) Priority of producer claims. In any insolvency or creditor's proceeding in court against a contractor, the unpaid claim of a producer under this section has the same priority as a claim for wages under
s. 109.09 (2). Producer claims have priority over the unsecured claims of any owner, officer, agent, partner, member, manager, stockholder or family member of the contractor. Producer claims shall be given the same priority as a claim for wages under
s. 109.09 (2) in federal bankruptcy proceedings, to the extent permitted by federal law. This subsection does not impair any other lien, security or priority for a producer claim.
100.03(14)
(14) Operator liability for claims not paid by subsidiary or affiliate. If a contractor is a subsidiary or affiliate of an operator, the operator is liable to a producer for the amount of any unpaid claim under this section if the contractor fails to pay the producer according to the terms of the procurement contract and this section.
100.03(15)(a)(a)
Grading procedures and grade standards. If under a procurement contract the amount received by the producer depends on the grade of the vegetables, the vegetables shall be graded in compliance with all of the following:
100.03(15)(a)1.
1. Standard procedures established by the department by rule.
100.03(15)(a)2.
2. Uniform grade standards established by the department by rule, unless alternative grade standards are clearly specified in writing in the procurement contract. Grade standards adopted by the department shall conform to grade standards adopted by the federal department of agriculture under
7 USC 1621 et seq.
100.03(15)(b)
(b)
Tare deductions. If under any procurement contract there is a payment deduction for tare, tare shall be determined according to procedures established by the department by rule.
100.03(15)(c)
(c)
Price-fixing not permitted. This subsection does not fix or regulate the price paid for any vegetable.
100.03(16)
(16) Records; inspection by department. A contractor shall keep copies of all written procurement contracts, and a current record of all liabilities to producers and payments to producers. Records and contracts under this subsection shall be kept for a period of 3 years, and shall be made available for inspection and copying by the department upon request.
100.03(17)
(17) Rules. The department may promulgate rules to implement and administer this section.
100.03(18)
(18) Summary order requiring payment on delivery. If the department has reasonable grounds to believe that a contractor does not meet the minimum financial standards under
sub. (7), and does not have adequate security on file under
sub. (8), the department may issue a summary special order requiring the contractor to make payment on delivery for all vegetables. A summary special order shall set forth the specific basis for the order. The order shall remain in effect until the contractor meets the financial standards under
sub. (7) or files adequate security under
sub. (8). A person adversely affected by a special order under this section shall be given a prompt hearing before the department upon request, under
ch. 227.
100.03(19)(a)(a)
Grounds. The department may summarily suspend the contractor's registration certificate when necessary to prevent clear and imminent harm to producers if the department has reasonable grounds to believe that a contractor has failed to make payment on delivery for vegetables, procured from producers, contrary to any of the following:
100.03(19)(b)
(b)
Procedure for suspension. A summary suspension order under this subsection shall set forth the specific basis for the order. A person adversely affected by a summary suspension order under this subsection may request a hearing before the department. The request must be made within 10 days after the suspension's date of service. The department shall conduct a hearing within 10 days after receipt of a request. A request for a hearing does not stay the effect of a summary suspension order, unless the department orders a stay.
100.03(20)
(20) Private remedy. In addition to any other remedy, if a producer sustains a monetary loss as a result of a violation of this section by a contractor, including a failure by the contractor to pay a liability to a producer when due, the producer may bring an action and may recover the amount of the producer's proven damages, together with costs, including all reasonable attorney fees, notwithstanding
s. 814.04 (1).
100.03(21)
(21) Restraint of trade not permitted. This section does not authorize any restraint of trade which is prohibited under state or federal law.
100.03(22)(a)(a)
Forfeiture. Any person who violates this section or any rule promulgated or order issued under this section may be required to forfeit not less than $100 nor more than $10,000. Notwithstanding
s. 165.25 (1), the department may commence an action to recover a forfeiture under this paragraph.
100.03(22)(b)
(b)
Fine or imprisonment. Any person who intentionally violates this section or any rule promulgated or order issued under this section shall be fined not less than $100 nor more than $10,000 or imprisoned for not more than one year in the county jail or both for each violation.
100.04
100.04
Livestock production contracts. 100.04(1)
(1)
Definition. In this section, "livestock" means swine, cattle, poultry, sheep, goats or farm-raised deer, as defined in
s. 95.001 (1) (a).
100.04(2)
(2) Required contract terms. Every written contract under which livestock owned by one party is possessed by another party for breeding, feeding or the production of animal products shall set forth, in clear language, the manner in which any payments received because of the destruction of the livestock due to disease, fire or other unanticipated cause shall be divided between the party owning the livestock and the party possessing the livestock.
100.04(3)
(3) Responsible party. The party who drafts or otherwise provides the text of a written contract described in
sub. (2) is responsible for including language that fulfills the requirement of
sub. (2).
100.04(4)
(4) Resolution of disputes. If a written contract described in
sub. (2) does not include language that fulfills the requirement of
sub. (2) and one of the parties to the contract begins an action claiming an interest in payments received because of the destruction of livestock, the court shall divide the payments among the parties in an equitable manner.
100.04 History
History: 1995 a. 210.
100.05
100.05
Butter and cheese manufacturers; accounts accessible. 100.05(1)(1) No operator of a butter factory or cheese factory wherein the value of the milk or cream delivered is determined by the sale of the product manufactured shall use or allow any other person, unless the other person is entitled to the benefit thereof, to use any milk or cream brought to the operator, without the consent of the owner thereof.
100.05(2)
(2) The operator of a butter or cheese factory wherein the value of the milk or cream delivered is determined by the sale of the product manufactured shall keep or cause to be kept a correct account of the amount of milk or cream received daily, and of the number of pounds of butter, and the number and style of cheese made each day, and of the number of cheese cut or otherwise disposed of and the weight of each, and the number of pounds of whey cream sold, with the test.
100.05(3)
(3) The account kept under
sub. (2) shall be open to the inspection of any person furnishing milk to the operator and to the department, its chemists, assistants, inspectors and agents.
100.05 History
History: 1993 a. 492;
1995 a. 225.
100.057
100.057
Wisconsin cheese logotype. The department shall design an official logotype appropriate for affixation to and display in connection with natural cheese meeting quality standards established by the department and manufactured in this state entirely from milk which is produced under standards which are equal to or greater than standards established under
s. 97.24 and rules adopted under
s. 97.24 or under minimum sanitary and quality standards prescribed under
s. 97.52 and rules adopted under
s. 97.52. The design shall consist of an outline of the boundaries of the state and the words "100% Wisconsin Cheese" and such other specifications as the department deems appropriate. Nothing in this section shall prohibit the use of other appropriate labels or logotypes.
100.057 History
History: 1975 c. 323;
1977 c. 157.
100.06
100.06
Dairy licenses; financial condition. 100.06(1)(b)
(b) "Balance sheet" means a statement of assets, liabilities and equity on a fixed date.
100.06(1)(c)
(c) "Cash flow to debt service ratio" means the result obtained by dividing the total of net income plus noncash expenses plus interest expense by the total of interest expense plus current maturities of long-term debt.
100.06(1)(d)
(d) "Current assets" means cash and assets, including trade or investment items, which may be readily converted into cash in the ordinary course of business within one year from the date of the balance sheet.
100.06(1)(e)
(e) "Current liabilities" means liabilities which are due and payable within one year from the date of the balance sheet.
100.06(1)(h)
(h) "Equity" means the excess of total assets over total liabilities.
