b. For the license year beginning on May 1, 2004, $19,000,000.
c. For a license year that begins on May 1, 2005, or later, $20,000,000.
38,37
Section
37. 126.47 (3) of the statutes is renumbered 126.47 (3) (a), and 126.47 (3) (a) (intro.), 1. and 2. (intro.), as renumbered, are amended to read:
126.47 (3) (a) (intro.) A Except as provided in par. (b), a milk contractor who is required to file or maintain security under this section shall at all times maintain the following amount of security:
1. Except as provided in par. (b) or (c) subd. 2. or 3., security equal to at least 75% of the amount last reported under s. 126.41 (6) (b) or (9).
2. (intro.) Except as provided in par. (c) subd. 3., for a milk contractor who procures milk in this state solely as a qualified producer agent, security equal to at least the following amounts:
38,38
Section
38. 126.47 (3) (b) of the statutes is created to read:
126.47 (3) (b) A milk contractor who is only required to file or maintain security under sub. (1) (b) shall at all times maintain security equal to the milk contractor's estimated default exposure, as defined in sub. (1) (b) 1., less the following amount:
a. For the license year beginning on May 1, 2003, $18,000,000.
b. For the license year beginning on May 1, 2004, $19,000,000.
c. For a license year that begins on May 1, 2005, or later, $20,000,000.
38,39
Section
39. 126.47 (7) (a) (intro.) of the statutes is amended to read:
126.47 (7) (a) (intro.) The department may release security filed under sub. (1) (a) if any of the following applies:
38,40
Section
40. 126.47 (7) (am) of the statutes is created to read:
126.47 (7) (am) The department may release security filed under sub. (1) (b), except for any amount of security that the milk contractor is required to file because sub. (1) (a) applies to the milk contractor, if the milk contractor files 2 consecutive annual financial statements under s. 126.44 showing that the milk contractor no longer has negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 2.0 to 1.0.
38,41
Section
41. 126.59 (2) (c) 3. and 4. of the statutes are amended to read:
126.59 (2) (c) 3. Failure to reimburse the department, within 60 days after the department issues a reimbursement demand under s. 126.73 (1), for the full amount that the department pays to claimants under s. 126.72 (1) or under s. 126.72 (2) with the proceeds of a loan under s. 126.06 (1) (b) because of that vegetable contractor's default.
4. Failure to reimburse a bond surety, within 60 days after the bond surety issues a reimbursement demand under s. 126.73 (2), for the full amount that the surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants affected by that vegetable contractor's default.
38,42
Section
42. 126.60 (1) (intro.) of the statutes is amended to read:
126.60 (1) General. (intro.) A contributing vegetable contractor shall pay an annual fund assessment for each license year. The Except as provided in sub. (5m), the assessment equals $20 or the sum of the following, whichever is greater, unless the department by rule specifies a different assessment:
38,43
Section
43. 126.60 (5m) of the statutes is created to read:
126.60 (5m) Reduced assessment for certain vegetable contractors filing security. If a vegetable contractor files security under s. 126.61 (1) (bm), the vegetable contractor's assessment is the amount determined under sub. (1) reduced by an amount determined as follows:
(a) Divide the amount of security that the vegetable contractor is required to file as determined under s. 126.61 (3) (b) by the amount of the vegetable contractor's estimated default exposure, as defined in s. 126.61 (1) (bm) 1.
(b) Multiply the amount of the assessment determined under sub. (1) by the amount determined under par. (a).
38,44
Section
44. 126.61 (1) (bm) of the statutes is created to read:
126.61 (1) (bm) 1. In this paragraph, "estimated default exposure" means the sum of the following:
a. Seventy-five percent of the amount last reported under s. 126.56 (9) (b) or (12) (a).
b. The full amount of the unpaid deferred contract obligations last reported under s. 126.56 (9) (e) or (12) (b).
2. 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) (bm), if the vegetable contractor files an annual financial statement under s. 126.58 (1) that shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0 and the vegetable contractor's estimated default exposure is greater than the following amount:
a. For the license year beginning on February 1, 2003, $18,000,000.
b. For the license year beginning on February 1, 2004, $19,000,000.
c. For a license year that begins on February 1, 2005, or later, $20,000,000.
38,45
Section
45. 126.61 (1) (c) (intro.) of the statutes is amended to read:
126.61 (1) (c) (intro.) A vegetable contractor is not required to file security under par. (a) or (b) this subsection if any of the following applies:
38,46
Section
46. 126.61 (3) of the statutes is renumbered 126.61 (3) (a), and 126.61 (3) (a) (intro.) and 1., as renumbered, are amended to read:
126.61 (3) (a) (intro.) A Except as provided in par. (b), 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:
1. 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.
38,47
Section
47. 126.61 (3) (b) of the statutes is created to read:
126.61 (3) (b) A vegetable contractor who is only required to file or maintain security under sub. (1) (bm) shall at all times maintain security equal to the vegetable contractor's estimated default exposure, as defined in sub. (1) (bm) 1., less the following amount:
1. For the license year beginning on February 1, 2003, $18,000,000.
2. For the license year beginning on February 1, 2004, $19,000,000.
3. For a license year that begins on February 1, 2005, or later, $20,000,000.
38,48
Section
48. 126.61 (7) (a) (intro.) of the statutes is amended to read:
126.61 (7) (a) (intro.) The department may release security filed under sub. (1) (a), except for any amount of security that the vegetable contractor is required to file because sub. (1) (b) or (bm) applies to the vegetable contractor, if any of the following applies:
38,49
Section
49. 126.61 (7) (b) (intro.) of the statutes is amended to read:
126.61 (7) (b) (intro.) The department may release security filed under sub. (1) (b), except for any amount of security that the vegetable contractor is required to file because sub. (1) (a) or (bm) applies to the vegetable contractor, if any of the following applies:
38,50
Section
50. 126.61 (7) (bm) of the statutes is created to read:
126.61 (7) (bm) The department may release security filed under sub. (1) (bm), except for any amount of security that the vegetable contractor is required to file because sub. (1) (a) or (b) applies to the vegetable contractor, if the vegetable contractor files 2 consecutive annual financial statements under s. 126.58 showing that the vegetable contractor no longer has negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.
38,51
Section
51. 126.71 (1) (d) of the statutes is amended to read:
126.71 (1) (d) For each default claim allowed under s. 126.70 against a qualified producer agent who, at the time of the default, was a contributing contractor and maintained security under s. 126.47 (3) (c) (a) 3., if the default occurs after April 30, 2002, and before May 1, 2004, 15% of the amount allowed.
38,52
Section
52. 126.71 (1) (e) of the statutes is amended to read:
126.71 (1) (e) For each default claim allowed under s. 126.70 against a qualified producer agent who, at the time of the default, was a contributing contractor and maintained security under s. 126.47 (3) (c) (a) 3., if the default occurs after April 30, 2004, and before May 1, 2007, 20% of the amount allowed.
38,53
Section
53. 126.72 (1) of the statutes is amended to read:
126.72 (1) Producer security fund. From the appropriation under s. 20.115 (1) (w), the department shall make payments authorized under s. 126.71 (1), up to the deductible amount in sub. (4) (3).
38,54
Section
54. 126.72 (2) and (3) of the statutes are repealed and recreated to read:
126.72 (2) Proceeds of contingent financial backing. The department, at the direction of the secretary of agriculture, trade and consumer protection, shall draw on the contingent financial backing acquired under s. 126.06 to make payments authorized under s. 126.71 (1), to the extent that those payments exceed the deductible amount in sub. (3).
(3) Deductible amount. The deductible amount, for purposes of subs. (1) and (2), is 60% of the cash balance in the agricultural producer security fund on the last day of the month preceding the month in which the default occurs.
38,55
Section
55. 126.72 (4) of the statutes is repealed.
38,56
Section
56. 126.73 of the statutes is amended to read:
126.73 Reimbursing payments. (1) Payments from the fund. The department may demand and collect, from a contractor, any claim amounts that the department pays under s. 126.72 (1) or under s. 126.72 (2) with the proceeds of a loan under s. 126.06 (1) (b) because of the contractor's default.
(2) Bond payments. A bond surety may demand and collect, from a contractor, any claim amounts that the bond surety pays to the department under s. 126.72 (2) or (3) because of the contractor's default. The bond surety shall provide the department with a copy of each demand under this subsection.
38,57
Section
57. 126.86 (1) (f) and (g) of the statutes are amended to read:
126.86 (1) (f) The contractor fails to reimburse the department, within 60 days after the department issues a reimbursement demand under s. 126.73 (1), for the full amount that the department pays to claimants under s. 126.72 (1) or under s. 126.72 (2) with the proceeds of a loan under s. 126.06 (1) (b) because of the contractor's default.
(g) The contractor fails to reimburse a bond surety, within 60 days after the bond surety issues a reimbursement demand under s. 126.73 (2), for the full amount that the surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants affected by the contractor's default.
38,58
Section
58. 126.90 of the statutes is amended to read:
126.90 Agricultural producer security council. The agricultural producer security council shall advise the department on the administration and enforcement of this chapter. The council shall meet as often as the department considers necessary, but at least once annually. The department shall inform the council of fund balances and payments, and. The department shall consult with the council before acquiring any contingent financial backing under s 126.06 and before modifying any license fee, license surcharge, or fund assessment under this chapter.
