Amendment AA1-ASA1-SB55

SB55-ASA1-AA1,926,7 8. Add the amount determined under subd. 4. to the amount determined under subd. 7.

SB55-ASA1-AA1,926,8 9. Add 0.25 to the amount determined under subd. 8.

SB55-ASA1-AA1,926,13 (b) If the vegetable contractor has filed an annual financial statement under s. 126.58 and that financial statement shows a current ratio of less than 1.25 to 1.0, but greater than 1.1 to 1.0, the vegetable contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by the following amount:

SB55-ASA1-AA1,926,14 1. Subtract 4 from the current ratio.

SB55-ASA1-AA1,926,15 2. Divide the amount determined under subd. 1. by 2.

SB55-ASA1-AA1,926,16 3. Multiply the amount determined under subd. 2. by negative one.

SB55-ASA1-AA1,926,17 4. Raise the amount determined under subd. 3. to the 3rd power.

SB55-ASA1-AA1,926,18 5. Subtract 0.65 from the current ratio.

SB55-ASA1-AA1,926,19 6. Divide 0.60 by the amount determined under subd. 5.

SB55-ASA1-AA1,926,20 7. Raise the amount determined under subd. 6. to the 5th power.

SB55-ASA1-AA1,926,22 8. Add the amount determined under subd. 4. to the amount determined under subd. 7.

SB55-ASA1-AA1,926,23 9. Add 0.25 to the amount determined under subd. 8.

SB55-ASA1-AA1,927,2 (c) If the vegetable contractor has filed an annual financial statement under s. 126.58 and that financial statement shows a current ratio of less than or equal to 1.1 to 1.0, the vegetable contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 7.512617.

SB55-ASA1-AA1,927,5 (d) If the vegetable contractor has not filed an annual financial statement under s. 126.58, the vegetable contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 3.84961.

SB55-ASA1-AA1,927,7 (3) Current ratio assessment factor. (a) A vegetable contractor's current ratio assessment factor under sub. (2) (a) is 0.00048, except as follows:

SB55-ASA1-AA1,927,10 1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is 0.00029.

SB55-ASA1-AA1,927,13 2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is zero.

SB55-ASA1-AA1,927,15 (b) A vegetable contractor's current ratio assessment factor under sub. (2) (b) to (d) is 0.00072, except as follows:

SB55-ASA1-AA1,927,18 1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is 0.00058.

SB55-ASA1-AA1,927,21 2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is 0.00035.

SB55-ASA1-AA1,927,24 (4) Debt to equity ratio assessment rate. A vegetable contractor's debt to equity ratio assessment rate for a license year is calculated, at the beginning of the license year, as follows:

SB55-ASA1-AA1,928,5 (a) If the vegetable contractor has filed an annual financial statement under s. 126.58 and that financial statement shows positive equity and a debt to equity ratio of not more than 4.0 to 1.0, the vegetable contractor's debt to equity ratio assessment rate equals the greater of zero or the debt to equity ratio assessment factor in sub. (5) (a) multiplied by the following amount:

SB55-ASA1-AA1,928,6 1. Subtract 4 from the debt to equity ratio.

SB55-ASA1-AA1,928,7 2. Divide the amount determined under subd. 1. by 4.

SB55-ASA1-AA1,928,8 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-ASA1-AA1,928,9 4. Subtract 1.85 from the debt to equity ratio.

SB55-ASA1-AA1,928,10 5. Divide the amount determined under subd. 4. by 2.5.

SB55-ASA1-AA1,928,11 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-ASA1-AA1,928,13 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-ASA1-AA1,928,14 8. Add one to the amount determined under subd. 7.

SB55-ASA1-AA1,928,19 (b) If the vegetable contractor has filed an annual financial statement under s. 126.58 and that financial statement shows a debt to equity ratio of greater than 4.0 to 1.0 but less than 6.0 to 1.0, the vegetable contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by the following amount:

SB55-ASA1-AA1,928,20 1. Subtract 4 from the debt to equity ratio.

SB55-ASA1-AA1,928,21 2. Divide the amount determined under subd. 1. by 4.

SB55-ASA1-AA1,928,22 3. Raise the amount determined under subd. 2. to the 3rd power.

SB55-ASA1-AA1,928,23 4. Subtract 1.85 from the debt to equity ratio.

SB55-ASA1-AA1,928,24 5. Divide the amount determined under subd. 4. by 2.5.

SB55-ASA1-AA1,928,25 6. Raise the amount determined under subd. 5. to the 7th power.

SB55-ASA1-AA1,929,2 7. Add the amount determined under subd. 3. to the amount determined under subd. 6.

SB55-ASA1-AA1,929,3 8. Add one to the amount determined under subd. 7.

SB55-ASA1-AA1,929,8 (c) If the vegetable contractor has filed an annual financial statement under s. 126.58 and that financial statement shows negative equity or a debt to equity ratio of at least 6.0 to 1.0, the vegetable contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 35.859145.

SB55-ASA1-AA1,929,11 (d) If the vegetable contractor has not filed an annual financial statement under s. 126.58, the vegetable contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 1.34793.

SB55-ASA1-AA1,929,13 (5) Debt to equity ratio assessment factor. (a) A vegetable contractor's debt to equity ratio assessment factor under sub. (4) (a) is 0.000135, except as follows:

SB55-ASA1-AA1,929,16 1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is 0.00008.

SB55-ASA1-AA1,929,19 2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is zero.

SB55-ASA1-AA1,929,21 (b) A vegetable contractor's debt to equity ratio assessment factor under sub. (4) (b) to (d) is 0.000203, except as follows:

SB55-ASA1-AA1,929,24 1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is 0.00016.

SB55-ASA1-AA1,930,3 2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is 0.0001.

SB55-ASA1-AA1,930,6 (6) Quarterly installments. (a) A contributing vegetable contractor shall pay the vegetable contractor's annual fund assessment in equal quarterly installments that are due as follows:

SB55-ASA1-AA1,930,7 1. The first installment is due on March 1 of the license year.

SB55-ASA1-AA1,930,8 2. The 2nd installment is due on June 1 of the license year.

SB55-ASA1-AA1,930,9 3. The 3rd installment is due on September 1 of the license year.

SB55-ASA1-AA1,930,10 4. The 4th installment is due on December 1 of the license year.

SB55-ASA1-AA1,930,12 (b) A contributing vegetable contractor may prepay any of the quarterly installments under par. (a).

SB55-ASA1-AA1,930,17 (c) A contributing vegetable contractor who applies for an annual license after the beginning of a license year shall pay the full annual fund assessment required under this section. The vegetable contractor shall pay, with the first quarterly installment that becomes due after the day on which the department issues the license, all of that year's quarterly installments that were due before that day.

SB55-ASA1-AA1,930,21 (d) A contributing vegetable contractor who fails to pay the full amount of any quarterly installment when due shall pay, in addition to that installment, a late payment penalty of $50 or 10% of the overdue installment amount, whichever is greater.

SB55-ASA1-AA1,930,24 (7) Notice of annual assessment and quarterly installments. When the department issues an annual license to a contributing vegetable contractor, the department shall notify the vegetable contractor of all of the following:

SB55-ASA1-AA1,931,2 (a) The amount of the vegetable contractor's annual fund assessment under this section.

SB55-ASA1-AA1,931,4 (b) The amount of each required quarterly installment under sub. (6) and the date by which the vegetable contractor must pay each installment.

SB55-ASA1-AA1,931,6 (c) The penalty that applies under sub. (6) (d) if the vegetable contractor fails to pay any quarterly installment when due.

SB55-ASA1-AA1,931,11 126.61 Vegetable contractors; security. (1) Security required. (a) Except as provided in par. (c), a vegetable contractor shall file security with the department, and maintain that security until the department releases it under sub. (7), if all of the following apply when the department first licenses the vegetable contractor under s. 126.56 (1):

SB55-ASA1-AA1,931,13 1. The vegetable contractor reports more than $1,000,000 in annual contract obligations under s. 126.56 (9) (a).

SB55-ASA1-AA1,931,15 2. The vegetable contractor files a financial statement under s. 126.58 (1) and that financial statement shows negative equity.

SB55-ASA1-AA1,931,22 (b) Except as provided in par. (c), a vegetable contractor shall file security with the department to cover the full amount of the unpaid deferred contract obligations last reported under s. 126.56 (9) (e) or (12) (b), and maintain that security until it is released under sub. (7), unless the vegetable contractor files an annual financial statement under s. 126.58 and that financial statement shows positive equity, a current ratio of at least 1.25 to 1.0, and a debt to equity ratio of not more than 4.0 to 1.0.

SB55-ASA1-AA1,931,24 (c) A vegetable contractor is not required to file security under par. (a) or (b) if any of the following applies:

SB55-ASA1-AA1,932,2 1. The vegetable contractor pays cash on delivery under all vegetable procurement contracts.

SB55-ASA1-AA1,932,4 2. The vegetable contractor is a producer-owned cooperative that procures processing vegetables only from its producer members.

SB55-ASA1-AA1,932,7 (2) Security continued. A vegetable contractor who filed security under s. 100.03, 1999 stats., before February 1, 2002, shall maintain that security until the department releases it under sub. (7).

SB55-ASA1-AA1,932,10 (3) Amount of security. A vegetable contractor who is required to file or maintain security under this section shall, at all times, maintain security that is at least equal to the sum of the following:

SB55-ASA1-AA1,932,13 (a) Seventy-five percent of the amount last reported under s. 126.56 (9) (b) or (12) (a), except that this amount is not required of a contributing vegetable contractor after May 1, 2002.

SB55-ASA1-AA1,932,14 (b) The amount required under sub. (1) (b), if any.

SB55-ASA1-AA1,932,17 (4) Form of security. The department shall review, and determine whether to approve, security filed under this section. The department may approve only the following types of security:

SB55-ASA1-AA1,932,18 (a) Currency.

SB55-ASA1-AA1,932,19 (b) A commercial surety bond if all of the following apply:

SB55-ASA1-AA1,932,21 1. The surety bond is made payable to the department for the benefit of vegetable producers and producer agents.

SB55-ASA1-AA1,932,23 2. The surety bond is issued by a person authorized to operate a surety business in this state.

SB55-ASA1-AA1,933,3 3. The surety bond is issued as a continuous term bond that may be canceled only with the department's written agreement, or upon 90 days' prior written notice served on the department in person or by certified mail.

SB55-ASA1-AA1,933,5 4. The surety bond is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-ASA1-AA1,933,7 (c) A certificate of deposit or money market certificate, if all of the following apply:

SB55-ASA1-AA1,933,9 1. The certificate is issued or endorsed to the department for the benefit of vegetable producers and producer agents.

SB55-ASA1-AA1,933,11 2. The certificate may not be canceled or redeemed without the department's written permission.

SB55-ASA1-AA1,933,13 3. No person may transfer or withdraw funds represented by the certificate without the department's written permission.

SB55-ASA1-AA1,933,14 4. The certificate renews automatically without any action by the department.

SB55-ASA1-AA1,933,16 5. The certificate is issued in a form, and subject to any terms and conditions, that the department considers appropriate.

SB55-ASA1-AA1,933,17 (d) An irrevocable bank letter of credit if all of the following apply:

SB55-ASA1-AA1,933,19 1. The letter of credit is payable to the department for the benefit of vegetable producers and producer agents.

SB55-ASA1-AA1,933,20 2. The letter of credit is issued on bank letterhead.

SB55-ASA1-AA1,933,21 3. The letter of credit is issued for an initial period of at least one year.

SB55-ASA1-AA1,933,24 4. The letter of credit renews automatically unless, at least 90 days before the scheduled renewal date, the issuing bank gives the department written notice, in person or by certified mail, that the letter of credit will not be renewed.

SB55-ASA1-AA1,934,2 5. The letter of credit is issued in a form, and subject to any terms and conditions, that the department considers appropriate.