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135. 126.71 (1) (d) and (e) of the statutes are repealed.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 of the statutes are repealed.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:
126.85 (1) General. The department may, by special order, require a contractor to remedy a violation of this chapter or, a rule promulgated under this chapter, or a condition imposed under s. 126.86 (1). The department may order the contractor to take specific remedial actions, including actions to remedy deficiencies or to prevent losses to persons protected under this chapter. In an order under this subsection, the department may disqualify the contractor from the fund pending compliance with the order. Except as provided in sub. (2), the department shall give the contractor notice and an opportunity for hearing before the department issues an order.
296,147
Section
147. 126.85 (2) (h) and (i) of the statutes are created to read:
126.85 (2) (h) A contractor fails to file a financial statement with the department by the time or in the form required under this chapter.
(i) A contractor fails to pay an amount owed under s. 126.73 within 60 days after the contractor receives a written demand for payment from the department or other person to whom payment is due under s. 126.73.
296,148
Section
148. 126.86 (1) (f) of the statutes is repealed and recreated to read:
126.86 (1) (f) The contractor fails to pay an amount owed under s. 126.73 within 60 days after the contractor receives a written demand for payment from the department or other person to whom payment is due under s. 126.73.
296,149
Section
149. 126.86 (1) (g) of the statutes is repealed.
296,150
Section
150. 126.86 (3) (a) of the statutes is amended to read:
126.86 (3) (a) The department may, without prior notice or hearing, summarily suspend, revoke, or impose conditions on a license held by a contractor if the department finds that any of the conditions identified in s. 126.85 (2) exist or otherwise finds that summary action is necessary to prevent a clear and imminent threat of harm to persons protected under this chapter. Conditions indicating a clear and imminent threat of harm include those identified in s. 126.85 (2).
296,151
Section
151. 126.88 of the statutes is renumbered 126.88 (1) and amended to read:
126.88 (1) The department may by rule modify the fund assessments provided under s. 126.15, 126.30, 126.46, or 126.60. The department shall modify fund assessments under ss. 126.15, 126.30, 126.46, and 126.60 as necessary to do all of the following:
(a) Maintain an overall fund balance of at least $5,000,000 after January 1, 2006, but not more than $22,000,000 at any time.
(b) Maintain a fund balance attributable to grain dealers of at least $1,000,000 after January 1, 2006, but not more than $6,000,000 at any time.
(c) Maintain a fund balance attributable to grain warehouse keepers of at least $200,000 after January 1, 2006, but not more than $1,000,000 at any time.
(d) Maintain a fund balance attributable to milk contractors of at least $3,000,000 after January 1, 2006, but not more than $12,000,000 at any time.
(e) Maintain a fund balance attributable to vegetable contractors of at least $800,000 after January 1, 2006, but not more than $3,000,000 at any time.
296,152
Section
152. 126.88 (2) of the statutes is created to read:
126.88 (2) (a) If the fund balance for a portion of the fund under sub. (1) (b) to (e) falls below the minimum amount required for that portion of the fund, the department shall by rule modify the assessment rates for the type of contractor that contributes to that portion of the fund so that the assessment rates are adequate to reach and maintain the minimum balance within a reasonable time.
(b) The department may use the procedure under s. 227.24 to promulgate a rule modifying an assessment under par. (a). In a rule promulgated under this paragraph, the department may not provide that the modification of an assessment takes effect before the beginning of the next license year. Notwithstanding s. 227.24 (1) (c) and (2), a rule promulgated under this paragraph may remain in effect for not more than 24 months. Notwithstanding s. 227.24 (1) (a) and (3), the department is not required to determine that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.