126.59 (4) Notice to producers. A vegetable contractor who is disqualified under sub. (2) (b) or (c) shall immediately give written notice of the disqualification to all vegetable producers and producer agents to whom the vegetable contractor has unpaid obligations under vegetable procurement contracts. The department may by rule or order specify the required form and content of the notice.
296,107 Section 107. 126.60 (1) (a) and (b) of the statutes are amended to read:
126.60 (1) (a) The vegetable contractor's current ratio assessment. The current ratio assessment for a license year equals the vegetable contractor's current ratio assessment rate under sub. (2) multiplied by the amount reported under s. 126.56 (9) (a) (am) in the vegetable contractor's license application for that license year.
126.60 (1) (b) The vegetable contractor's debt to equity ratio assessment. The debt to equity ratio assessment for a license year equals the vegetable contractor's debt to equity ratio assessment rate under sub. (4) multiplied by the amount reported under s. 126.56 (9) (a) (am) in the vegetable contractor's license application for that license year.
296,108 Section 108. 126.60 (1) (c) of the statutes is repealed.
296,109 Section 109. 126.60 (5m) (intro.) and (a) of the statutes are amended to read:
126.60 (5m) Reduced assessment for certain vegetable contractors filing security. (intro.) If a vegetable contractor files security under s. 126.61 (1) (bm) (b), 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) (b) 1.
296,110 Section 110. 126.61 (1) (a) 1. of the statutes is amended to read:
126.61 (1) (a) 1. The vegetable contractor reports more than $1,000,000 $500,000 in annual contract obligations under s. 126.56 (9) (a) (am).
296,111 Section 111. 126.61 (1) (b) of the statutes is repealed and recreated to read:
126.61 (1) (b) 1. In this paragraph, "estimated default exposure" means 75 percent of the highest amount of unpaid contract obligations, reported by a vegetable contractor under s. 126.56 (9) (b) or (12) that the vegetable contractor had at any time during the last 12 months.
2. Except as provided in par. (c), a vegetable contractor shall file security with the department, and shall maintain that security until the department releases it under sub. (7) (bm), if at any time all of the following apply:
a. The vegetable contractor's latest annual financial statement under s. 126.58 (1) 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.
b. The vegetable contractor's estimated default exposure exceeds $20,000,000.
296,112 Section 112. 126.61 (1) (bm) of the statutes is repealed.
296,113 Section 113. 126.61 (2) of the statutes is repealed.
296,114 Section 114. 126.61 (3) (a) (intro.) and 1. of the statutes are consolidated, renumbered 126.61 (3) and amended to read:
126.61 (3) 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 75 percent of the amount of unpaid contract obligations last reported under s. 126.56 (9) (b) or (12) (a), except that this amount is not required of a contributing vegetable contractor.
296,115 Section 115. 126.61 (3) (a) 2. of the statutes is repealed.
296,116 Section 116. 126.61 (3) (b) (intro.) and 3. of the statutes are consolidated, renumbered 126.61 (3) (b) and amended to read:
126.61 (3) (b) A vegetable contractor who is only required to file or maintain security only under sub. (1) (bm) (b) shall at all times maintain security equal to the vegetable contractor's estimated default exposure, as defined in sub. (1) (bm) (b) 1., less the following amount: 3. For a license year that begins on February 1, 2005, or later, $20,000,000.
296,117 Section 117. 126.61 (3) (b) 1. and 2. of the statutes are repealed.
296,118 Section 118. 126.61 (4) (e) of the statutes is repealed.
296,119 Section 119. 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:
296,120 Section 120. 126.61 (7) (a) 1. of the statutes is amended to read:
126.61 (7) (a) 1. The vegetable contractor reports less than $1,000,000 $500,000 in annual contract obligations under s. 126.56 (9) (a) for at least 2 consecutive years and the vegetable contractor pays the quarterly fund assessment that would have been required of the vegetable contractor if the vegetable contractor had been a contributing vegetable contractor on the most recent quarterly installment date under s. 126.60 (6).
296,121 Section 121. 126.61 (7) (b) of the statutes is repealed.
296,122 Section 122. 126.61 (7) (bm) of the statutes is amended to read:
126.61 (7) (bm) The department may release security filed under sub. (1) (bm) (b), 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.
296,123 Section 123. 126.61 (7) (c) of the statutes is repealed.
296,124 Section 124. 126.62 (2) (intro.) of the statutes is renumbered 126.62 (2) and amended to read:
126.62 (2) Records retention. A vegetable contractor shall keep all of the following records required under sub. (1) for at least 6 years from the date of their creation:.
296,125 Section 125. 126.62 (2) (a) and (b) of the statutes are repealed.
296,126 Section 126. 126.63 (4) (c) of the statutes is repealed and recreated to read:
126.63 (4) (c) A vegetable contractor may pay after January 31 for processing vegetables delivered on or before December 31, in accordance with a deferred payment contract, if all of the following apply:
1. The vegetable contractor complies with sub. (5).
2. The deferred payment contract specifies a date by which full payment must be paid.
3. The deferred payment contract clearly and conspicuously discloses that the vegetable producer or producer agent is disqualified from filing a default claim under s. 126.70 in the event that the vegetable contractor defaults on payment under the deferred payment contract. The department may by rule or order specify the form and content of the disclosure.
296,127 Section 127. 126.64 (intro.) of the statutes is amended to read:
126.64 Vegetable contractors; prohibited practices. (intro.) No vegetable contractor, or officer, employee, or agent of a vegetable contractor, may do any of the following:
296,128 Section 128. 126.64 (7) of the statutes is created to read:
126.64 (7) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.
296,129 Section 129. 126.70 (1) of the statutes is renumbered 126.70 (1) (a), and 126.70 (1) (a) (intro.), as renumbered, is amended to read:
126.70 (1) (a) (intro.) Any A person who is one of the following persons may file a default claim with the department against a contractor who is licensed, or required to be licensed, under this chapter, unless the person has waived eligibility to file a claim as provided in pars. (b) and (c):
296,130 Section 130. 126.70 (1) (b) and (c) of the statutes are created to read:
126.70 (1) (b) A producer or producer agent may permanently waive eligibility to file a default claim against a grain dealer, milk contractor, or vegetable contractor if, at the time of the waiver, any of the following applies:
1. The producer or producer agent has a greater than 50 percent ownership interest in the grain dealer, milk contractor, or vegetable contractor.
2. Persons who collectively have a greater than 50 percent ownership interest in the producer or producer agent also collectively have a greater than 50 percent ownership interest in the grain dealer, milk contractor, or vegetable contractor.
(c) A producer or producer agent shall file a waiver under par. (b) with the department in writing, on a form provided by the department. In the waiver, the producer or producer agent shall include documentation to show that the requirements in par. (b) are satisfied and that the individuals signing the waiver are authorized to do so on behalf of the producer or producer agent.
296,131 Section 131. 126.70 (4) (title) of the statutes is amended to read:
126.70 (4) (title) Auditing and disallowing claims.
296,132 Section 132. 126.70 (4) (f) to (k) of the statutes are created to read:
126.70 (4) (f) That the defaulting contractor paid the amount due by check, but the claimant failed to present the check for payment within 30 days of receipt.
(g) That the claim relates to a payment that first became due, under a deferred payment contract for grain, more than 120 days after the grain was delivered to the defaulting grain dealer.
(h) That the claim relates to a payment that first became due, under a deferred payment contract for processing vegetables, after January 31 of any year for processing vegetables tendered or delivered to a vegetable contractor on or before December 31 of the preceding year.
(i) That the claim relates to grain, milk, or vegetables that were never tendered to or received and accepted by the defaulting grain dealer, milk contractor, or vegetable contractor. This paragraph does not apply to unharvested acreage, as defined in s. 126.55 (17).
(j) That the claimant has, under sub. (1) (b), permanently waived eligibility to file the claim.
(k) That any of the following circumstances exists and causes the claim to be an unfair or unreasonable claim against the fund, regardless of whether the claimant has, under sub. (1) (b), waived the claim:
1. The claimant had a greater than 50 percent ownership interest in the defaulting contractor at the time of the default or at relevant times before the default.
2. Persons who collectively had a greater than 50 percent ownership interest in the claimant also had a greater than 50 percent ownership interest in the defaulting contractor at the time of the default or at relevant times before the default.
3. The claimant, or any of the claimant's owners, officers, or managers, had substantial management control, at the time of the default or at relevant times before the default, over any of the defaulting contractor's operations involved in the default.
4. The claimant, or any of the claimant's owners, officers, or managers, conspired with the defaulting contractor, or any of the defaulting contractor's owners, officers, or managers, to create a default and a resulting claim against the fund.
5. Other circumstances that the department specifies by rule.
296,133 Section 133. 126.70 (6) (g) of the statutes is created to read:
126.70 (6) (g) Specify any further actions required of a claimant, including any further actions required to obtain payment under a trade credit insurance policy or other contingent financial backing under s. 126.06.
296,134 Section 134. 126.71 (1) (a) (intro.) of the statutes is amended to read:
126.71 (1) (a) (intro.) Except as provided in par. (d) or (e), for For each default claim allowed under s. 126.70 against a grain dealer or milk contractor who was a contributing contractor when the default occurred:
296,135 Section 135. 126.71 (1) (d) and (e) of the statutes are repealed.
296,136 Section 136. 126.71 (3) (a) 1. to 3. of the statutes are repealed.
296,137 Section 137. 126.72 (2) of the statutes is amended 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). If the contingent financial backing is in the form of a trade credit insurance policy that appears to cover the authorized payments, the department shall file a claim against the policy.
296,138 Section 138. 126.73 (1) of the statutes is amended to read:
126.73 (1) Payments from the fund Generally. The Except as provided in sub. (2) or (3), 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) contingent financial backing under s. 126.06 (1) because of the contractor's default.
296,139 Section 139. 126.73 (3) of the statutes is created to read:
126.73 (3) Trade credit insurance payments. If the department files a claim against a trade credit insurance policy under s. 126.72 (2) and obtains and uses proceeds from the insurance policy to make payments authorized under s. 126.72 (2), the trade credit insurer may demand and collect the amount of those payments from the defaulting contractor.
296,140 Section 140. 126.81 (intro.) and (1) of the statutes are renumbered 126.81 (1) (intro.) and (a).
296,141 Section 141. 126.81 (1) (c) of the statutes is created to read:
126.81 (1) (c) Specify additional circumstances for denying claims under s. 126.70 (4) (k).
296,142 Section 142. 126.81 (2) of the statutes is renumbered 126.81 (1) (b) and amended to read:
126.81 (1) (b) Modify the license fees and surcharges provided in under s. 126.11 (4), 126.26 (3), 126.41 (3), 126.42, or 126.56 (4).
296,143 Section 143. 126.81 (2m) of the statutes is created to read:
126.81 (2m) The department shall promulgate rules to do all of the following:
(a) Specify license fees and surcharges under ss. 126.11 (4), 126.26 (3), and 126.56 (4).
(b) Specify fund assessments under s. 126.46 (1).
296,144 Section 144. 126.81 (3) of the statutes is repealed.
296,145 Section 145. 126.81 (4) of the statutes is renumbered 126.81 (d).
296,146 Section 146. 126.85 (1) of the statutes is amended to read:
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