AB717,25,1310 126.47 (3) (b) A milk contractor who is only required to file or maintain security
11only under sub. (1) (b) shall at all times maintain security equal to the milk
12contractor's estimated default exposure, as defined in sub. (1) (b) 1., less the following
13amount: 3. For a license year that begins on May 1, 2005, or later,
$20,000,000.
AB717, s. 91 14Section 91. 126.47 (3) (b) 1. and 2. of the statutes are repealed.
AB717, s. 92 15Section 92. 126.47 (4) (e) of the statutes is repealed.
AB717, s. 93 16Section 93. 126.47 (7) (a) 1. and 2. of the statutes are amended to read:
AB717,25,2217 126.47 (7) (a) 1. The milk contractor reports not more than $1,500,000 in milk
18payroll obligations under s. 126.41 (6) (a)
150,000 hundredweight of milk under s.
19126.41 (6) (bg)
for at least 2 consecutive years and the milk contractor pays the
20quarterly fund assessment installment amount that would have been required of the
21milk contractor if the milk contractor had been a contributing milk contractor on the
22date when the most recent quarterly installment date under s. 126.46 (6) was due.
AB717,26,423 2. The milk contractor's annual financial statement under s. 126.44 shows
24positive equity for at least 2 consecutive years, the financial statements are audited
25or, if the milk contractor reports $6,000,000 or less in annual milk payroll obligations

1under s. 126.41 (6) (a), reviewed,
and the milk contractor pays the quarterly fund
2assessment installment amount that would have been required of the milk
3contractor if the milk contractor had been a contributing milk contractor on the date
4when the
most recent quarterly installment date under s. 126.46 (6) was due.
AB717, s. 94 5Section 94. 126.47 (7) (b) of the statutes is repealed.
AB717, s. 95 6Section 95. 126.50 (intro.) of the statutes is amended to read:
AB717,26,9 7126.50 Milk contractors; prohibited practices. (intro.) No milk
8contractor, or officer, employee, or agent of a milk contractor, may do any of the
9following:
AB717, s. 96 10Section 96. 126.50 (6) of the statutes is created to read:
AB717,26,1211 126.50 (6) Assault, threaten, intimidate, or otherwise interfere with an officer,
12employee, or agent of the department in the performance of his or her duties.
AB717, s. 97 13Section 97. 126.56 (4) of the statutes is amended to read:
AB717,26,1614 126.56 (4) License fees and surcharges. A vegetable contractor applying for
15a license under sub. (1) shall pay the following fees and surcharges , unless in
16amounts that
the department specifies a different fee or surcharge amount by rule:
AB717,26,1717 (a) A nonrefundable basic license processing fee of $25.
AB717,26,2018 (b) A fee of $25 plus 5.75 cents for each $100 in based on the amount of contract
19obligations reported under sub. (9) (a), less any credit provided under sub. (6), except
20that this paragraph does not apply to a vegetable contractor to whom par. (f) applies.
AB717,26,2521 (c) A license surcharge of $500 if the department determines that, within 365
22days before submitting the license application, the applicant operated as a vegetable
23contractor without a license in violation of sub. (1). The applicant shall also pay any
24license fees, license surcharges, and fund assessments that are still due for the
25license year in which the applicant violated sub. (1).
AB717,27,3
1(d) A license surcharge of $100 if during the preceding 12 months the applicant
2failed to file an annual financial statement required under s. 126.58 (1) (b) by the
3applicable deadline.
AB717,27,54 (e) A license surcharge of $100 if a renewal applicant fails to renew a license
5by the license expiration date of January 31.
AB717,27,86 (f) If A fee if the vegetable contractor is a processing potato buyer who has
7elected not to participate in the fund in accordance with s. 126.595 (1), a fee of $500
8or another amount established by the department by rule
.
AB717, s. 98 9Section 98. 126.56 (4m) of the statutes is amended to read:
AB717,27,1310 126.56 (4m) Effect of payment of surcharge. Payment of a license surcharge
11under sub. (3) (4) (c) does not relieve the applicant of any other civil or criminal
12liability that results from the violation of sub. (1), but does not constitute evidence
13of any law violation.
AB717, s. 99 14Section 99. 126.56 (9) (am) of the statutes is created to read:
AB717,27,1615 126.56 (9) (am) The amount of contract obligations under par. (a) less any
16amount under par. (i) 2.
AB717, s. 100 17Section 100. 126.56 (9) (i) of the statutes is created to read:
AB717,27,2018 126.56 (9) (i) All of the following information related to each vegetable producer
19or producer agent that under s. 126.70 (1) (b) has permanently waived eligibility to
20file a default claim against the applicant:
AB717,27,2221 1. A copy of the written waiver that the vegetable producer or producer agent
22filed under s. 126.70 (1) (c).
AB717,28,423 2. The total amount of contract obligations that the applicant incurred during
24the applicant's last completed fiscal year under vegetable procurement contracts
25with that vegetable producer or producer agent. If the applicant has not yet operated

1as a vegetable contractor, the applicant shall estimate the total amount of contract
2obligations that the applicant will incur during the applicant's first complete fiscal
3year under vegetable procurement contracts with that vegetable producer or
4producer agent.
AB717, s. 101 5Section 101. 126.56 (12) of the statutes is repealed and recreated to read:
AB717,28,106 126.56 (12) Monthly reports. A vegetable contractor who files security under
7s. 126.61 shall provide a monthly report to the department showing the highest
8amount of the vegetable contractor's unpaid contract obligations at any time during
9the preceding month and the total amount of unpaid contract obligations under
10deferred payment contracts.
AB717, s. 102 11Section 102. 126.58 (1) (a) and (b) of the statutes are amended to read:
AB717,28,1512 126.58 (1) (a) Except as provided in par. (c), a vegetable contractor shall file an
13annual financial statement with the department, before the department first
14licenses the vegetable contractor under s. 126.56 (1), if the vegetable contractor
15reports more than $500,000 in contract obligations under s. 126.56 (9) (a) (am).
AB717,28,2416 (b) Except as provided in par. (c), a vegetable contractor licensed under s.
17126.56 (1) shall file an annual financial statement with the department during each
18license year if the vegetable contractor's license application for that year reports
19more than $500,000 in contract obligations under s. 126.56 (9) (a) (am). The
20vegetable contractor shall file the annual financial statement by the 15th day of the
214th month following the close of the vegetable contractor's fiscal year, except that the
22department may extend the filing deadline for up to 30 days if the vegetable
23contractor, or the accountant reviewing or auditing the financial statement, files a
24written extension request at least 10 days before the filing deadline.
AB717, s. 103 25Section 103. 126.58 (3) of the statutes is repealed and recreated to read:
AB717,29,5
1126.58 (3) Reviewed or audited financial statement. A vegetable contractor
2filing a financial statement under sub. (1) or (2) may file either a reviewed financial
3statement or an audited financial statement, except that if the amount that the
4vegetable contractor last reported under s. 126.56 (9) (am) is more than $7,500,000,
5the vegetable contractor shall file an audited financial statement.
AB717, s. 104 6Section 104. 126.59 (2) (c) (intro.) of the statutes is renumbered 126.59 (2) (c)
7and amended to read:
AB717,29,118 126.59 (2) (c) A vegetable contractor is disqualified from the fund, and required
9to pay cash on delivery under vegetable procurement contracts, if the department
10issues a written notice an order under s. 126.85 disqualifying the vegetable
11contractor for cause. Cause may include any of the following: from the fund.
AB717, s. 105 12Section 105. 126.59 (2) (c) 1. to 4. of the statutes are repealed.
AB717, s. 106 13Section 106. 126.59 (4) of the statutes is created to read:
AB717,29,1814 126.59 (4) Notice to producers. A vegetable contractor who is disqualified
15under sub. (2) (b) or (c) shall immediately give written notice of the disqualification
16to all vegetable producers and producer agents to whom the vegetable contractor has
17unpaid obligations under vegetable procurement contracts. The department may by
18rule or order specify the required form and content of the notice.
AB717, s. 107 19Section 107. 126.60 (1) (a) and (b) of the statutes are amended to read:
AB717,29,2320 126.60 (1) (a) The vegetable contractor's current ratio assessment. The current
21ratio assessment for a license year equals the vegetable contractor's current ratio
22assessment rate under sub. (2) multiplied by the amount reported under s. 126.56
23(9) (a) (am) in the vegetable contractor's license application for that license year.
AB717,30,324 126.60 (1) (b) The vegetable contractor's debt to equity ratio assessment. The
25debt to equity ratio assessment for a license year equals the vegetable contractor's

1debt to equity ratio assessment rate under sub. (4) multiplied by the amount reported
2under s. 126.56 (9) (a) (am) in the vegetable contractor's license application for that
3license year.
AB717, s. 108 4Section 108. 126.60 (1) (c) of the statutes is repealed.
AB717, s. 109 5Section 109. 126.60 (5m) (intro.) and (a) of the statutes are amended to read:
AB717,30,96 126.60 (5m) Reduced assessment for certain vegetable contractors filing
7security.
(intro.) If a vegetable contractor files security under s. 126.61 (1) (bm) (b),
8the vegetable contractor's assessment is the amount determined under sub. (1)
9reduced by an amount determined as follows:
AB717,30,1210 (a) Divide the amount of security that the vegetable contractor is required to
11file as determined under s. 126.61 (3) (b) by the amount of the vegetable contractor's
12estimated default exposure, as defined in s. 126.61 (1) (bm) (b) 1.
AB717, s. 110 13Section 110. 126.61 (1) (a) 1. of the statutes is amended to read:
AB717,30,1514 126.61 (1) (a) 1. The vegetable contractor reports more than $1,000,000
15$500,000 in annual contract obligations under s. 126.56 (9) (a) (am).
AB717, s. 111 16Section 111. 126.61 (1) (b) of the statutes is repealed and recreated to read:
AB717,30,2017 126.61 (1) (b) 1. In this paragraph, "estimated default exposure" means 75
18percent of the highest amount of unpaid contract obligations, reported by a vegetable
19contractor under s. 126.56 (9) (b) or (12) that the vegetable contractor had at any time
20during the last 12 months.
AB717,30,2321 2. Except as provided in par. (c), a vegetable contractor shall file security with
22the department, and shall maintain that security until the department releases it
23under sub. (7) (bm), if at any time all of the following apply:
AB717,31,3
1a. The vegetable contractor's latest annual financial statement under s. 126.58
2(1) shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity
3ratio of more than 4.0 to 1.0.
AB717,31,44 b. The vegetable contractor's estimated default exposure exceeds $20,000,000.
AB717, s. 112 5Section 112. 126.61 (1) (bm) of the statutes is repealed.
AB717, s. 113 6Section 113. 126.61 (2) of the statutes is repealed.
AB717, s. 114 7Section 114. 126.61 (3) (a) (intro.) and 1. of the statutes are consolidated,
8renumbered 126.61 (3) and amended to read:
AB717,31,139 126.61 (3) Except as provided in par. (b), a vegetable contractor who is required
10to file or maintain security under this section shall, at all times, maintain security
11that is at least equal to the sum of the following: 1. Seventy-five 75 percent of the
12amount of unpaid contract obligations last reported under s. 126.56 (9) (b) or (12) (a),
13except that this amount is not required of a contributing vegetable contractor.
AB717, s. 115 14Section 115. 126.61 (3) (a) 2. of the statutes is repealed.
AB717, s. 116 15Section 116. 126.61 (3) (b) (intro.) and 3. of the statutes are consolidated,
16renumbered 126.61 (3) (b) and amended to read:
AB717,31,2117 126.61 (3) (b) A vegetable contractor who is only required to file or maintain
18security only under sub. (1) (bm) (b) shall at all times maintain security equal to the
19vegetable contractor's estimated default exposure, as defined in sub. (1) (bm) (b) 1.,
20less the following amount: 3. For a license year that begins on February 1, 2005, or
21later,
$20,000,000.
AB717, s. 117 22Section 117. 126.61 (3) (b) 1. and 2. of the statutes are repealed.
AB717, s. 118 23Section 118. 126.61 (4) (e) of the statutes is repealed.
AB717, s. 119 24Section 119. 126.61 (7) (a) (intro.) of the statutes is amended to read:
AB717,32,4
1126.61 (7) (a) (intro.) The department may release security filed under sub. (1)
2(a), except for any amount of security that the vegetable contractor is required to file
3because sub. (1) (b) or (bm) applies to the vegetable contractor, if any of the following
4applies:
AB717, s. 120 5Section 120. 126.61 (7) (a) 1. of the statutes is amended to read:
AB717,32,116 126.61 (7) (a) 1. The vegetable contractor reports less than $1,000,000 $500,000
7in annual contract obligations under s. 126.56 (9) (a) for at least 2 consecutive years
8and the vegetable contractor pays the quarterly fund assessment that would have
9been required of the vegetable contractor if the vegetable contractor had been a
10contributing vegetable contractor on the most recent quarterly installment date
11under s. 126.60 (6).
AB717, s. 121 12Section 121. 126.61 (7) (b) of the statutes is repealed.
AB717, s. 122 13Section 122. 126.61 (7) (bm) of the statutes is amended to read:
AB717,32,1914 126.61 (7) (bm) The department may release security filed under sub. (1) (bm)
15(b), except for any amount of security that the vegetable contractor is required to file
16because sub. (1) (a) or (b) applies to the vegetable contractor, if the vegetable
17contractor files 2 consecutive annual financial statements under s. 126.58 showing
18that the vegetable contractor no longer has negative equity, a current ratio of less
19than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.
AB717, s. 123 20Section 123. 126.61 (7) (c) of the statutes is repealed.
AB717, s. 124 21Section 124. 126.62 (2) (intro.) of the statutes is renumbered 126.62 (2) and
22amended to read:
AB717,32,2523 126.62 (2) Records retention. A vegetable contractor shall keep all of the
24following
records required under sub. (1) for at least 6 years from the date of their
25creation:.
AB717, s. 125
1Section 125. 126.62 (2) (a) and (b) of the statutes are repealed.
AB717, s. 126 2Section 126. 126.63 (4) (c) of the statutes is repealed and recreated to read:
AB717,33,53 126.63 (4) (c) A vegetable contractor may pay after January 31 for processing
4vegetables delivered on or before December 31, in accordance with a deferred
5payment contract, if all of the following apply:
AB717,33,66 1. The vegetable contractor complies with sub. (5).
AB717,33,87 2. The deferred payment contract specifies a date by which full payment must
8be paid.
AB717,33,139 3. The deferred payment contract clearly and conspicuously discloses that the
10vegetable producer or producer agent is disqualified from filing a default claim under
11s. 126.70 in the event that the vegetable contractor defaults on payment under the
12deferred payment contract. The department may by rule or order specify the form
13and content of the disclosure.
AB717, s. 127 14Section 127. 126.64 (intro.) of the statutes is amended to read:
AB717,33,17 15126.64 Vegetable contractors; prohibited practices. (intro.) No vegetable
16contractor, or officer, employee, or agent of a vegetable contractor, may do any of the
17following:
AB717, s. 128 18Section 128. 126.64 (7) of the statutes is created to read:
AB717,33,2019 126.64 (7) Assault, threaten, intimidate, or otherwise interfere with an officer,
20employee, or agent of the department in the performance of his or her duties.
AB717, s. 129 21Section 129. 126.70 (1) of the statutes is renumbered 126.70 (1) (a), and 126.70
22(1) (a) (intro.), as renumbered, is amended to read:
AB717,34,223 126.70 (1) (a) (intro.) Any A person who is one of the following persons may file
24a default claim with the department against a contractor who is licensed, or required

1to be licensed, under this chapter, unless the person has waived eligibility to file a
2claim as provided in pars. (b) and (c)
:
AB717, s. 130 3Section 130. 126.70 (1) (b) and (c) of the statutes are created to read:
AB717,34,64 126.70 (1) (b) A producer or producer agent may permanently waive eligibility
5to file a default claim against a grain dealer, milk contractor, or vegetable contractor
6if, at the time of the waiver, any of the following applies:
AB717,34,87 1. The producer or producer agent has a greater than 50 percent ownership
8interest in the grain dealer, milk contractor, or vegetable contractor.
AB717,34,119 2. Persons who collectively have a greater than 50 percent ownership interest
10in the producer or producer agent also collectively have a greater than 50 percent
11ownership interest in the grain dealer, milk contractor, or vegetable contractor.
AB717,34,1612 (c) A producer or producer agent shall file a waiver under par. (b) with the
13department in writing, on a form provided by the department. In the waiver, the
14producer or producer agent shall include documentation to show that the
15requirements in par. (b) are satisfied and that the individuals signing the waiver are
16authorized to do so on behalf of the producer or producer agent.
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