AB717,17,1615 (a) Misrepresent the weight, grade, or quality of depositor grain received from
16or delivered to any person.
AB717, s. 56 17Section 56. 126.34 (5) (g) of the statutes is created to read:
AB717,17,1918 126.34 (5) (g) Assault, threaten, intimidate, or otherwise interfere with an
19officer, employee, or agent of the department in the performance of his or her duties.
AB717, s. 57 20Section 57. 126.40 (1) of the statutes is renumbered 126.40 (1) (intro.) and
21amended to read:
AB717,18,222 126.40 (1) (intro.) "Contributing milk contractor" means a milk contractor who
23is licensed under s. 126.41 (1), who either has paid one or more quarterly
24installments under s. 126.46 or is required to contribute to the fund, but the first

1quarterly installment under s. 126.46 (6) is not yet due, and
who is has not been
2disqualified from the fund under s. 126.45 (3)., and who either:
AB717, s. 58 3Section 58. 126.40 (1) (a) and (b) of the statutes are created to read:
AB717,18,44 126.40 (1) (a) Has paid one or more fund assessments under s. 126.46.
AB717,18,65 (b) Is required to contribute to the fund but the first fund assessment under s.
6126.46 (6) is not yet due.
AB717, s. 59 7Section 59. 126.41 (3) (intro.) and (a) of the statutes are amended to read:
AB717,18,118 126.41 (3) Annual license fees and surcharges. (intro.) A milk contractor
9applying for a an annual license under sub. (1) shall include the following fees and
10surcharges with the license application, unless the department specifies a different
11fee or surcharge amount by rule:
AB717,18,1312 (a) A nonrefundable basic license processing fee of $25, regardless of whether
13application is made after the beginning of a license year
.
AB717, s. 60 14Section 60. 126.41 (6) (a) of the statutes is amended to read:
AB717,18,2015 126.41 (6) (a) The total milk payroll obligations that the applicant incurred
16during the applicant's last completed fiscal year, less the total amount reported
17under par. (br) 3., if any
. If the applicant has not yet operated as a milk contractor
18in this state, the applicant shall estimate the total milk payroll obligations that the
19applicant will incur during the applicant's first complete fiscal year, less the total
20amount reported under par. (br) 3., if any
.
AB717, s. 61 21Section 61. 126.41 (6) (b) (intro.) of the statutes is created to read:
AB717,18,2222 126.41 (6) (b) (intro.) Either of the following amounts:
AB717, s. 62 23Section 62. 126.41 (6) (b) of the statutes is renumbered 126.41 (6) (b) 1. and
24amended to read:
AB717,19,3
1126.41 (6) (b) 1. The largest highest amount of unpaid milk payroll obligations
2that the milk contractor applicant had at any time during the milk contractor's
3applicant's last completed fiscal year.
AB717, s. 63 4Section 63. 126.41 (6) (b) 2. of the statutes is created to read:
AB717,19,75 126.41 (6) (b) 2. The highest amount of milk payroll obligations that the
6applicant incurred in any single month during the applicant's last completed fiscal
7year.
AB717, s. 64 8Section 64. 126.41 (6) (bg) of the statutes is created to read:
AB717,19,159 126.41 (6) (bg) The total amount in hundredweight of producer milk that the
10applicant procured in this state during the applicant's last completed fiscal year, less
11the total amount reported under par. (br) 2., if any. If the applicant has not yet
12operated as a milk contractor in this state, the applicant shall estimate the total
13amount in hundredweight of producer milk that the applicant will procure in this
14state during the applicant's first complete fiscal year, less the total amount reported
15under par. (br) 2., if any.
AB717, s. 65 16Section 65. 126.41 (6) (br) of the statutes is created to read:
AB717,19,1917 126.41 (6) (br) All of the following information related to each milk producer
18or producer agent that under s. 126.70 (1) (b) has permanently waived eligibility to
19file a default claim against the applicant:
AB717,19,2120 1. A copy of the written waiver that the milk producer or producer agent filed
21under s. 126.70 (1) (c).
AB717,20,222 2. The total amount in hundredweight of producer milk that the applicant
23procured in this state from that milk producer or producer agent during the
24applicant's last completed fiscal year. If the applicant has not yet operated as a milk
25contractor in this state, the applicant shall estimate the total amount in

1hundredweight of producer milk that the applicant will procure in this state from
2that milk producer or producer agent during the applicant's first complete fiscal year.
AB717,20,93 3. The total milk payroll obligations that the applicant incurred during the
4applicant's last completed fiscal year for producer milk that the applicant procured
5from that milk producer or producer agent. If the applicant has not yet operated as
6a milk contractor in this state, the applicant shall estimate the total milk payroll
7obligations that the applicant will incur during the applicant's first complete fiscal
8year for producer milk that the applicant will procure from that milk producer or
9producer agent.
AB717, s. 66 10Section 66. 126.41 (9) of the statutes is repealed and recreated to read:
AB717,20,1211 126.41 (9) A milk contractor who files and maintains security under s. 126.47
12shall provide a monthly report to the department containing either of the following:
AB717,20,1413 (a) The highest amount of the milk contractor's unpaid milk payroll obligations
14at any time during the preceding month.
AB717,20,1615 (b) The total amount of milk payroll obligations that the milk contractor
16incurred during the preceding month.
AB717, s. 67 17Section 67. 126.42 (6) of the statutes is amended to read:
AB717,20,1918 126.42 (6) Fee changes. The department may modify the license fees under
19sub. (1) by rule, as provided under s. 126.81 (2).
AB717, s. 68 20Section 68. 126.44 (1) (a) of the statutes is amended to read:
AB717,20,2421 126.44 (1) (a) A milk contractor shall file an annual financial statement with
22the department before the department first licenses the milk contractor under s.
23126.41 (1), unless the milk contractor reports no more than $1,500,000 in annual
24milk payroll obligations
150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).
AB717, s. 69 25Section 69. 126.44 (1) (c) 1. of the statutes is amended to read:
AB717,21,3
1126.44 (1) (c) 1. A contributing milk contractor who reports no more than
2$1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under
3s. 126.41 (6) (a) (bg).
AB717, s. 70 4Section 70. 126.44 (5) of the statutes is repealed and recreated to read:
AB717,21,95 126.44 (5) Reviewed or audited financial statement. A milk contractor filing
6a financial statement under sub. (1) or (2) may file either a reviewed financial
7statement or an audited financial statement, except that if the milk contractor
8reports more than 2,500,000 hundredweight of milk under s. 126.41 (6) (bg), the milk
9contractor shall file an audited financial statement.
AB717, s. 71 10Section 71. 126.45 (3) (a) of the statutes is amended to read:
AB717,21,1511 126.45 (3) (a) A milk contractor who is required to file security under s. 126.47
12(1) (a) is disqualified from the fund until the department releases that security under
13s. 126.47 (7) (a). This paragraph does not apply, during the period beginning on May
141, 2002, and ending on April 30, 2007, to a qualified producer agent who files security
15under s. 126.47 (3) (a) 3.
AB717, s. 72 16Section 72. 126.45 (3) (b) of the statutes is renumbered 126.45 (3) (b) (intro.)
17and amended to read:
AB717,21,1918 126.45 (3) (b) (intro.) A milk contractor is disqualified from the fund if the
19department denies does any of the following:
AB717,21,20 201. Denies, suspends, or revokes the milk contractor's license.
AB717, s. 73 21Section 73. 126.45 (3) (b) 2. of the statutes is created to read:
AB717,21,2322 126.45 (3) (b) 2. Issues an order under s. 126.85 disqualifying the milk
23contractor from the fund.
AB717, s. 74 24Section 74. 126.45 (3) (c) of the statutes is repealed.
AB717, s. 75 25Section 75. 126.45 (4) (a) of the statutes is amended to read:
AB717,22,5
1126.45 (4) (a) A milk contractor disqualified under sub. (3) (c) (b) 2. may not
2engage in any activities for which a license is required under s. 126.41 (1) (a) if the
3milk contractor files an annual, quarterly, or interim financial statement under s.
4126.44 that shows a current ratio of less than 1.25 to 1.0, a debt to equity ratio of more
5than 2.0 to 1.0, or negative equity.
AB717, s. 76 6Section 76. 126.45 (5) of the statutes is created to read:
AB717,22,117 126.45 (5) Notice to producers. A milk contractor who is disqualified under
8sub. (3) shall immediately give written notice of the disqualification to all milk
9producers and producer agents to whom the milk contractor has unpaid milk
10payment obligations. The department may by rule or order specify the form and
11content of the notice.
AB717, s. 77 12Section 77. 126.46 (1) (intro.) of the statutes is renumbered 126.46 (1) and
13amended to read:
AB717,22,1714 126.46 (1) General. A contributing milk contractor shall pay an annual fund
15assessment for each license year. Except as provided in sub. (5m), the assessment
16equals $20 or the sum of the following, whichever is greater, unless
in the amount
17specified by
the department by rule specifies a different assessment:.
AB717, s. 78 18Section 78. 126.46 (1) (a) and (b) of the statutes are repealed.
AB717, s. 79 19Section 79. 126.46 (2) to (5) of the statutes are repealed.
AB717, s. 80 20Section 80. 126.46 (5m) (intro.) of the statutes is amended to read:
AB717,22,2421 126.46 (5m) Reduced assessment for certain milk contractors filing
22security.
(intro.) If a contributing milk contractor files security under s. 126.47 (1)
23(b), the contributing milk contractor's fund assessment is the amount determined
24specified under sub. (1) reduced by an amount determined as follows:
AB717, s. 81
1Section 81. 126.46 (5m) (a) of the statutes is renumbered 126.46 (5m) (a)
2(intro.) and amended to read:
AB717,23,63 126.46 (5m) (a) (intro.) Divide the amount of security that the milk contractor
4is required to file as determined under s. 126.47 (3) (b) by the amount of the milk
5contractor's estimated default exposure, as defined in s. 126.47 (1) (b) 1.
75 percent
6of the following:
AB717, s. 82 7Section 82. 126.46 (5m) (a) 1. and 2. of the statutes are created to read:
AB717,23,118 126.46 (5m) (a) 1. If the milk contractor reports unpaid milk payroll obligations
9under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll
10obligations, reported under s. 126.41 (6) (b) 1. or (9) (a), that the milk contractor had
11at any time during the last 12 months.
AB717,23,1512 2. If the milk contractor reports monthly milk payroll obligations under s.
13126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported
14under s. 126.41 (6) (b) 2. or (9) (b), that the milk contractor incurred in any month
15during the last 12 months.
AB717, s. 83 16Section 83. 126.46 (5m) (b) of the statutes is amended to read:
AB717,23,1817 126.46 (5m) (b) Multiply the amount of the assessment determined specified
18under sub. (1) by the amount determined under par. (a).
AB717, s. 84 19Section 84. 126.47 (1) (a) 1. of the statutes is amended to read:
AB717,23,2120 126.47 (1) (a) 1. The milk contractor reports more than $1,500,000 in annual
21milk payroll obligations
150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).
AB717, s. 85 22Section 85. 126.47 (1) (b) of the statutes is repealed and recreated to read:
AB717,23,2423 126.47 (1) (b) 1. In this paragraph, "estimated default exposure" means 75
24percent of the following:
AB717,24,4
1a. If the milk contractor reports unpaid milk payroll obligations under s. 126.41
2(6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported
3under s. 126.41 (6) (b) 1. or (9) (a), that the milk contractor had at any time during
4the last 12 months.
AB717,24,85 b. If the milk contractor reports monthly milk payroll obligations under s.
6126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported
7under s. 126.41 (6) (b) 2. or (9) (b), that the milk contractor incurred in any month
8during the last 12 months.
AB717,24,119 2. A milk contractor shall file security with the department, and shall maintain
10that security until the department releases it under sub. (7) (am), if all of the
11following apply:
AB717,24,1412 a. The milk contractor's last annual financial statement under s. 126.44 (1)
13shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio
14of more than 2.0 to 1.0.
AB717,24,1515 b. The milk contractor's estimated default exposure exceeds $20,000,000.
AB717, s. 86 16Section 86. 126.47 (2) of the statutes is repealed.
AB717, s. 87 17Section 87. 126.47 (3) (a) (intro.) of the statutes is amended to read:
AB717,24,2118 126.47 (3) (a) (intro.) Except as provided in par. (b), a milk contractor who is
19required to file or maintain security under this section sub. (1) shall at all times
20maintain the following amount of security in an amount equal to at least 75 percent
21of the following
:
AB717, s. 88 22Section 88. 126.47 (3) (a) 1. and 2. of the statutes are repealed and recreated
23to read:
AB717,25,224 126.47 (3) (a) 1. If the milk contractor reports unpaid milk payroll obligations
25under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll

1obligations, reported under s. 126.41 (6) (b) 1. or (9) (b), that the milk contractor had
2at any time during the last 12 months.
AB717,25,63 2. If the milk contractor reports monthly milk payroll obligations under s.
4126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported
5under s. 126.41 (6) (b) 1. or (9) (b), that the milk contractor incurred in any month
6during the last 12 months.
AB717, s. 89 7Section 89. 126.47 (3) (a) 3. of the statutes is repealed.
AB717, s. 90 8Section 90. 126.47 (3) (b) (intro.) and 3. of the statutes are consolidated,
9renumbered 126.47 (3) (b) and amended to read:
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:
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