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AB717, s. 121 12Section 121. 126.61 (7) (b) of the statutes is repealed.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AB717, s. 123 20Section 123. 126.61 (7) (c) of the statutes is repealed.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1Section 125. 126.62 (2) (a) and (b) of the statutes are repealed.
AB717, s. 126 2Section 126. 126.63 (4) (c) of the statutes is repealed and recreated to read: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.
AB717, s. 131 17Section 131. 126.70 (4) (title) of the statutes is amended to read:
AB717,34,1818 126.70 (4) (title) Auditing and disallowing claims.
AB717, s. 132 19Section 132. 126.70 (4) (f) to (k) of the statutes are created to read:
AB717,34,2120 126.70 (4) (f) That the defaulting contractor paid the amount due by check, but
21the claimant failed to present the check for payment within 30 days of receipt.
AB717,34,2422 (g) That the claim relates to a payment that first became due, under a deferred
23payment contract for grain, more than 120 days after the grain was delivered to the
24defaulting grain dealer.
AB717,35,4
1(h) That the claim relates to a payment that first became due, under a deferred
2payment contract for processing vegetables, after January 31 of any year for
3processing vegetables tendered or delivered to a vegetable contractor on or before
4December 31 of the preceding year.
AB717,35,85 (i) That the claim relates to grain, milk, or vegetables that were never tendered
6to or received and accepted by the defaulting grain dealer, milk contractor, or
7vegetable contractor. This paragraph does not apply to unharvested acreage, as
8defined in s. 126.55 (17).
AB717,35,109 (j) That the claimant has, under sub. (1) (b), permanently waived eligibility to
10file the claim.
AB717,35,1311 (k) That any of the following circumstances exists and causes the claim to be
12an unfair or unreasonable claim against the fund, regardless of whether the claimant
13has, under sub. (1) (b), waived the claim:
AB717,35,1514 1. The claimant had a greater than 50 percent ownership interest in the
15defaulting contractor at the time of the default or at relevant times before the default.
AB717,35,1816 2. Persons who collectively had a greater than 50 percent ownership interest
17in the claimant also had a greater than 50 percent ownership interest in the
18defaulting contractor at the time of the default or at relevant times before the default.
AB717,35,2219 3. The claimant, or any of the claimant's owners, officers, or managers, had
20substantial management control, at the time of the default or at relevant times
21before the default, over any of the defaulting contractor's operations involved in the
22default.
AB717,36,223 4. The claimant, or any of the claimant's owners, officers, or managers,
24conspired with the defaulting contractor, or any of the defaulting contractor's

1owners, officers, or managers, to create a default and a resulting claim against the
2fund.
AB717,36,33 5. Other circumstances that the department specifies by rule.
AB717, s. 133 4Section 133. 126.70 (6) (g) of the statutes is created to read:
AB717,36,75 126.70 (6) (g) Specify any further actions required of a claimant, including any
6further actions required to obtain payment under a trade credit insurance policy or
7other contingent financial backing under s. 126.06.
AB717, s. 134 8Section 134. 126.71 (1) (a) (intro.) of the statutes is amended to read:
AB717,36,119 126.71 (1) (a) (intro.) Except as provided in par. (d) or (e), for For each default
10claim allowed under s. 126.70 against a grain dealer or milk contractor who was a
11contributing contractor when the default occurred:
AB717, s. 135 12Section 135. 126.71 (1) (d) and (e) of the statutes are repealed.
AB717, s. 136 13Section 136. 126.71 (3) (a) 1. to 3. of the statutes are repealed.
AB717, s. 137 14Section 137. 126.72 (2) of the statutes is amended to read:
AB717,36,2115 126.72 (2) Proceeds of contingent financial backing. The department, at the
16direction of the secretary of agriculture, trade and consumer protection, shall draw
17on the contingent financial backing acquired under s. 126.06 to make payments
18authorized under s. 126.71 (1), to the extent that those payments exceed the
19deductible amount in sub. (3). If the contingent financial backing is in the form of
20a trade credit insurance policy that appears to cover the authorized payments, the
21department shall file a claim against the policy.
AB717, s. 138 22Section 138. 126.73 (1) of the statutes is amended to read:
AB717,37,223 126.73 (1) Payments from the fund Generally. The Except as provided in sub.
24(2) or (3), the
department may demand and collect, from a contractor, any claim
25amounts that the department pays under s. 126.72 (1) or under s. 126.72 (2) with the

1proceeds of a loan under s. 126.06 (1) (b) contingent financial backing under s. 126.06
2(1)
because of the contractor's default.
AB717, s. 139 3Section 139. 126.73 (3) of the statutes is created to read:
AB717,37,84 126.73 (3) Trade credit insurance payments. If the department files a claim
5against a trade credit insurance policy under s. 126.72 (2) and obtains and uses
6proceeds from the insurance policy to make payments authorized under s. 126.72 (2),
7the trade credit insurer may demand and collect the amount of those payments from
8the defaulting contractor.
AB717, s. 140 9Section 140. 126.81 (intro.) and (1) of the statutes are renumbered 126.81 (1)
10(intro.) and (a).
AB717, s. 141 11Section 141. 126.81 (1) (c) of the statutes is created to read:
AB717,37,1312 126.81 (1) (c) Specify additional circumstances for denying claims under s.
13126.70 (4) (k).
AB717, s. 142 14Section 142. 126.81 (2) of the statutes is renumbered 126.81 (1) (b) and
15amended to read:
AB717,37,1716 126.81 (1) (b) Modify the license fees and surcharges provided in under s.
17126.11 (4), 126.26 (3), 126.41 (3), 126.42, or 126.56 (4).
AB717, s. 143 18Section 143. 126.81 (2m) of the statutes is created to read:
AB717,37,1919 126.81 (2m) The department shall promulgate rules to do all of the following:
AB717,37,2120 (a) Specify license fees and surcharges under ss. 126.11 (4), 126.26 (3), and
21126.56 (4).
AB717,37,2222 (b) Specify fund assessments under s. 126.46 (1).
AB717, s. 144 23Section 144. 126.81 (3) of the statutes is repealed.
AB717, s. 145 24Section 145. 126.81 (4) of the statutes is renumbered 126.81 (d).
AB717, s. 146 25Section 146. 126.85 (1) of the statutes is amended to read:
AB717,38,8
1126.85 (1) General. The department may, by special order, require a contractor
2to remedy a violation of this chapter or, a rule promulgated under this chapter, or a
3condition imposed under s. 126.86 (1)
. The department may order the contractor to
4take specific remedial actions, including actions to remedy deficiencies or to prevent
5losses to persons protected under this chapter. In an order under this subsection, the
6department may disqualify the contractor from the fund pending compliance with
7the order.
Except as provided in sub. (2), the department shall give the contractor
8notice and an opportunity for hearing before the department issues an order.
AB717, s. 147 9Section 147. 126.85 (2) (h) and (i) of the statutes are created to read:
AB717,38,1110 126.85 (2) (h) A contractor fails to file a financial statement with the
11department by the time or in the form required under this chapter.
AB717,38,1412 (i) A contractor fails to pay an amount owed under s. 126.73 within 60 days after
13the contractor receives a written demand for payment from the department or other
14person to whom payment is due under s. 126.73.
AB717, s. 148 15Section 148. 126.86 (1) (f) of the statutes is repealed and recreated to read:
AB717,38,1816 126.86 (1) (f) The contractor fails to pay an amount owed under s. 126.73 within
1760 days after the contractor receives a written demand for payment from the
18department or other person to whom payment is due under s. 126.73.
AB717, s. 149 19Section 149. 126.86 (1) (g) of the statutes is repealed.
AB717, s. 150 20Section 150. 126.86 (3) (a) of the statutes is amended to read:
AB717,39,221 126.86 (3) (a) The department may, without prior notice or hearing, summarily
22suspend, revoke, or impose conditions on a license held by a contractor if the
23department finds that any of the conditions identified in s. 126.85 (2) exist or
24otherwise
finds that summary action is necessary to prevent a clear and imminent

1threat of harm to persons protected under this chapter. Conditions indicating a clear
2and imminent threat of harm include those identified in s. 126.85 (2).
AB717, s. 151 3Section 151. 126.88 of the statutes is renumbered 126.88 (1) and amended to
4read:
AB717,39,85 126.88 (1) The department may by rule modify the fund assessments provided
6under s. 126.15, 126.30, 126.46, or 126.60. The department shall modify fund
7assessments under ss. 126.15, 126.30, 126.46, and 126.60 as necessary to do all of the
8following:
AB717,39,109 (a) Maintain an overall fund balance of at least $5,000,000 after January 1,
102006
, but not more than $22,000,000 at any time.
AB717,39,1211 (b) Maintain a fund balance attributable to grain dealers of at least $1,000,000
12after January 1, 2006, but not more than $6,000,000 at any time.
AB717,39,1413 (c) Maintain a fund balance attributable to grain warehouse keepers of at least
14$200,000 after January 1, 2006, but not more than $1,000,000 at any time.
AB717,39,1615 (d) Maintain a fund balance attributable to milk contractors of at least
16$3,000,000 after January 1, 2006, but not more than $12,000,000 at any time.
AB717,39,1817 (e) Maintain a fund balance attributable to vegetable contractors of at least
18$800,000 after January 1, 2006, but not more than $3,000,000 at any time.
AB717, s. 152 19Section 152. 126.88 (2) of the statutes is created to read:
AB717,39,2420 126.88 (2) (a) If the fund balance for a portion of the fund under sub. (1) (b) to
21(e) falls below the minimum amount required for that portion of the fund, the
22department shall by rule modify the assessment rates for the type of contractor that
23contributes to that portion of the fund so that the assessment rates are adequate to
24reach and maintain the minimum balance within a reasonable time.
AB717,40,10
1(b) The department may use the procedure under s. 227.24 to promulgate a rule
2modifying an assessment under par. (a). In a rule promulgated under this
3paragraph, the department may not provide that the modification of an assessment
4takes effect before the beginning of the next license year. Notwithstanding s. 227.24
5(1) (c) and (2), a rule promulgated under this paragraph may remain in effect for not
6more than 24 months. Notwithstanding s. 227.24 (1) (a) and (3), the department is
7not required to determine that promulgating a rule under this paragraph as an
8emergency rule is necessary for the preservation of the public peace, health, safety,
9or welfare and is not required to provide a finding of emergency for a rule
10promulgated under this paragraph.
AB717,40,1111 (End)
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