AB717: Bill Text

AB717,17,16 (a) Misrepresent the weight, grade, or quality of depositor grain received from or delivered to any person.

AB717, s. 56 Section 56. 126.34 (5) (g) of the statutes is created to read:

AB717,17,19 126.34 (5) (g) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.

AB717, s. 57 Section 57. 126.40 (1) of the statutes is renumbered 126.40 (1) (intro.) and amended to read:

AB717,18,2 126.40 (1) (intro.) "Contributing milk contractor" means a milk contractor who is licensed under s. 126.41 (1), who either has paid one or more quarterly installments under s. 126.46 or is required to contribute to the fund, but the first quarterly installment under s. 126.46 (6) is not yet due, and who is has not been disqualified from the fund under s. 126.45 (3)., and who either:

AB717, s. 58 Section 58. 126.40 (1) (a) and (b) of the statutes are created to read:

AB717,18,4 126.40 (1) (a) Has paid one or more fund assessments under s. 126.46.

AB717,18,6 (b) Is required to contribute to the fund but the first fund assessment under s. 126.46 (6) is not yet due.

AB717, s. 59 Section 59. 126.41 (3) (intro.) and (a) of the statutes are amended to read:

AB717,18,11 126.41 (3) Annual license fees and surcharges. (intro.) A milk contractor applying for a an annual license under sub. (1) shall include the following fees and surcharges with the license application, unless the department specifies a different fee or surcharge amount by rule:

AB717,18,13 (a) A nonrefundable basic license processing fee of $25, regardless of whether application is made after the beginning of a license year.

AB717, s. 60 Section 60. 126.41 (6) (a) of the statutes is amended to read:

AB717,18,20 126.41 (6) (a) The total milk payroll obligations that the applicant incurred during the applicant's last completed fiscal year, less the total amount reported under par. (br) 3., if any. If the applicant has not yet operated as a milk contractor in this state, the applicant shall estimate the total milk payroll obligations that the applicant will incur during the applicant's first complete fiscal year, less the total amount reported under par. (br) 3., if any.

AB717, s. 61 Section 61. 126.41 (6) (b) (intro.) of the statutes is created to read:

AB717,18,22 126.41 (6) (b) (intro.) Either of the following amounts:

AB717, s. 62 Section 62. 126.41 (6) (b) of the statutes is renumbered 126.41 (6) (b) 1. and amended to read:

AB717,19,3 126.41 (6) (b) 1. The largest highest amount of unpaid milk payroll obligations that the milk contractor applicant had at any time during the milk contractor's applicant's last completed fiscal year.

AB717, s. 63 Section 63. 126.41 (6) (b) 2. of the statutes is created to read:

AB717,19,7 126.41 (6) (b) 2. The highest amount of milk payroll obligations that the applicant incurred in any single month during the applicant's last completed fiscal year.

AB717, s. 64 Section 64. 126.41 (6) (bg) of the statutes is created to read:

AB717,19,15 126.41 (6) (bg) The total amount in hundredweight of producer milk that the applicant procured in this state during the applicant's last completed fiscal year, less the total amount reported under par. (br) 2., if any. If the applicant has not yet operated as a milk contractor in this state, the applicant shall estimate the total amount in hundredweight of producer milk that the applicant will procure in this state during the applicant's first complete fiscal year, less the total amount reported under par. (br) 2., if any.

AB717, s. 65 Section 65. 126.41 (6) (br) of the statutes is created to read:

AB717,19,19 126.41 (6) (br) All of the following information related to each milk producer or producer agent that under s. 126.70 (1) (b) has permanently waived eligibility to file a default claim against the applicant:

AB717,19,21 1. A copy of the written waiver that the milk producer or producer agent filed under s. 126.70 (1) (c).

AB717,20,2 2. The total amount in hundredweight of producer milk that the applicant procured in this state from that milk producer or producer agent during the applicant's last completed fiscal year. If the applicant has not yet operated as a milk contractor in this state, the applicant shall estimate the total amount in hundredweight of producer milk that the applicant will procure in this state from that milk producer or producer agent during the applicant's first complete fiscal year.

AB717,20,9 3. The total milk payroll obligations that the applicant incurred during the applicant's last completed fiscal year for producer milk that the applicant procured from that milk producer or producer agent. If the applicant has not yet operated as a milk contractor in this state, the applicant shall estimate the total milk payroll obligations that the applicant will incur during the applicant's first complete fiscal year for producer milk that the applicant will procure from that milk producer or producer agent.

AB717, s. 66 Section 66. 126.41 (9) of the statutes is repealed and recreated to read:

AB717,20,12 126.41 (9) A milk contractor who files and maintains security under s. 126.47 shall provide a monthly report to the department containing either of the following:

AB717,20,14 (a) The highest amount of the milk contractor's unpaid milk payroll obligations at any time during the preceding month.

AB717,20,16 (b) The total amount of milk payroll obligations that the milk contractor incurred during the preceding month.

AB717, s. 67 Section 67. 126.42 (6) of the statutes is amended to read:

AB717,20,19 126.42 (6) Fee changes. The department may modify the license fees under sub. (1) by rule, as provided under s. 126.81 (2).

AB717, s. 68 Section 68. 126.44 (1) (a) of the statutes is amended to read:

AB717,20,24 126.44 (1) (a) A milk contractor shall file an annual financial statement with the department before the department first licenses the milk contractor under s. 126.41 (1), unless the milk contractor reports no more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

AB717, s. 69 Section 69. 126.44 (1) (c) 1. of the statutes is amended to read:

AB717,21,3 126.44 (1) (c) 1. A contributing milk contractor who reports no more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

AB717, s. 70 Section 70. 126.44 (5) of the statutes is repealed and recreated to read:

AB717,21,9 126.44 (5) Reviewed or audited financial statement. A milk contractor filing a financial statement under sub. (1) or (2) may file either a reviewed financial statement or an audited financial statement, except that if the milk contractor reports more than 2,500,000 hundredweight of milk under s. 126.41 (6) (bg), the milk contractor shall file an audited financial statement.

AB717, s. 71 Section 71. 126.45 (3) (a) of the statutes is amended to read:

AB717,21,15 126.45 (3) (a) A milk contractor who is required to file security under s. 126.47 (1) (a) is disqualified from the fund until the department releases that security under s. 126.47 (7) (a). This paragraph does not apply, during the period beginning on May 1, 2002, and ending on April 30, 2007, to a qualified producer agent who files security under s. 126.47 (3) (a) 3.

AB717, s. 72 Section 72. 126.45 (3) (b) of the statutes is renumbered 126.45 (3) (b) (intro.) and amended to read:

AB717,21,19 126.45 (3) (b) (intro.) A milk contractor is disqualified from the fund if the department denies does any of the following:

AB717,21,20 1. Denies, suspends, or revokes the milk contractor's license.

AB717, s. 73 Section 73. 126.45 (3) (b) 2. of the statutes is created to read:

AB717,21,23 126.45 (3) (b) 2. Issues an order under s. 126.85 disqualifying the milk contractor from the fund.

AB717, s. 74 Section 74. 126.45 (3) (c) of the statutes is repealed.

AB717, s. 75 Section 75. 126.45 (4) (a) of the statutes is amended to read:

AB717,22,5 126.45 (4) (a) A milk contractor disqualified under sub. (3) (c) (b) 2. may not engage in any activities for which a license is required under s. 126.41 (1) (a) if the milk contractor files an annual, quarterly, or interim financial statement under s. 126.44 that shows a current ratio of less than 1.25 to 1.0, a debt to equity ratio of more than 2.0 to 1.0, or negative equity.

AB717, s. 76 Section 76. 126.45 (5) of the statutes is created to read:

AB717,22,11 126.45 (5) Notice to producers. A milk contractor who is disqualified under sub. (3) shall immediately give written notice of the disqualification to all milk producers and producer agents to whom the milk contractor has unpaid milk payment obligations. The department may by rule or order specify the form and content of the notice.

AB717, s. 77 Section 77. 126.46 (1) (intro.) of the statutes is renumbered 126.46 (1) and amended to read:

AB717,22,17 126.46 (1) General. A contributing milk contractor shall pay an annual fund assessment for each license year. Except as provided in sub. (5m), the assessment equals $20 or the sum of the following, whichever is greater, unless in the amount specified by the department by rule specifies a different assessment:.

AB717, s. 78 Section 78. 126.46 (1) (a) and (b) of the statutes are repealed.

AB717, s. 79 Section 79. 126.46 (2) to (5) of the statutes are repealed.

AB717, s. 80 Section 80. 126.46 (5m) (intro.) of the statutes is amended to read:

AB717,22,24 126.46 (5m) Reduced assessment for certain milk contractors filing security. (intro.) If a contributing milk contractor files security under s. 126.47 (1) (b), the contributing milk contractor's fund assessment is the amount determined specified under sub. (1) reduced by an amount determined as follows:

AB717, s. 81 Section 81. 126.46 (5m) (a) of the statutes is renumbered 126.46 (5m) (a) (intro.) and amended to read:

AB717,23,6 126.46 (5m) (a) (intro.) Divide the amount of security that the milk contractor is required to file as determined under s. 126.47 (3) (b) by the amount of the milk contractor's estimated default exposure, as defined in s. 126.47 (1) (b) 1. 75 percent of the following:

AB717, s. 82 Section 82. 126.46 (5m) (a) 1. and 2. of the statutes are created to read:

AB717,23,11 126.46 (5m) (a) 1. If the milk contractor reports unpaid milk payroll obligations under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (a), that the milk contractor had at any time during the last 12 months.

AB717,23,15 2. If the milk contractor reports monthly milk payroll obligations under s. 126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 2. or (9) (b), that the milk contractor incurred in any month during the last 12 months.

AB717, s. 83 Section 83. 126.46 (5m) (b) of the statutes is amended to read:

AB717,23,18 126.46 (5m) (b) Multiply the amount of the assessment determined specified under sub. (1) by the amount determined under par. (a).

AB717, s. 84 Section 84. 126.47 (1) (a) 1. of the statutes is amended to read:

AB717,23,21 126.47 (1) (a) 1. The milk contractor reports more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

AB717, s. 85 Section 85. 126.47 (1) (b) of the statutes is repealed and recreated to read:

AB717,23,24 126.47 (1) (b) 1. In this paragraph, "estimated default exposure" means 75 percent of the following:

AB717,24,4 a. If the milk contractor reports unpaid milk payroll obligations under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (a), that the milk contractor had at any time during the last 12 months.

AB717,24,8 b. If the milk contractor reports monthly milk payroll obligations under s. 126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 2. or (9) (b), that the milk contractor incurred in any month during the last 12 months.

AB717,24,11 2. A milk contractor shall file security with the department, and shall maintain that security until the department releases it under sub. (7) (am), if all of the following apply:

AB717,24,14 a. The milk contractor's last annual financial statement under s. 126.44 (1) shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 2.0 to 1.0.

AB717,24,15 b. The milk contractor's estimated default exposure exceeds $20,000,000.

AB717, s. 86 Section 86. 126.47 (2) of the statutes is repealed.

AB717, s. 87 Section 87. 126.47 (3) (a) (intro.) of the statutes is amended to read:

AB717,24,21 126.47 (3) (a) (intro.) Except as provided in par. (b), a milk contractor who is required to file or maintain security under this section sub. (1) shall at all times maintain the following amount of security in an amount equal to at least 75 percent of the following:

AB717, s. 88 Section 88. 126.47 (3) (a) 1. and 2. of the statutes are repealed and recreated to read:

AB717,25,2 126.47 (3) (a) 1. If the milk contractor reports unpaid milk payroll obligations under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (b), that the milk contractor had at any time during the last 12 months.

AB717,25,6 2. If the milk contractor reports monthly milk payroll obligations under s. 126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (b), that the milk contractor incurred in any month during the last 12 months.

AB717, s. 89 Section 89. 126.47 (3) (a) 3. of the statutes is repealed.

AB717, s. 90 Section 90. 126.47 (3) (b) (intro.) and 3. of the statutes are consolidated, renumbered 126.47 (3) (b) and amended to read:

AB717,25,13 126.47 (3) (b) A milk contractor who is only required to file or maintain security only under sub. (1) (b) shall at all times maintain security equal to the milk contractor's estimated default exposure, as defined in sub. (1) (b) 1., less the following amount: 3. For a license year that begins on May 1, 2005, or later, $20,000,000.

AB717, s. 91 Section 91. 126.47 (3) (b) 1. and 2. of the statutes are repealed.

AB717, s. 92 Section 92. 126.47 (4) (e) of the statutes is repealed.

AB717, s. 93 Section 93. 126.47 (7) (a) 1. and 2. of the statutes are amended to read:

AB717,25,22 126.47 (7) (a) 1. The milk contractor reports not more than $1,500,000 in milk payroll obligations under s. 126.41 (6) (a) 150,000 hundredweight of milk under s. 126.41 (6) (bg) for at least 2 consecutive years and the milk contractor pays the quarterly fund assessment installment amount that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the date when the most recent quarterly installment date under s. 126.46 (6) was due.

AB717,26,4 2. The milk contractor's annual financial statement under s. 126.44 shows positive equity for at least 2 consecutive years, the financial statements are audited or, if the milk contractor reports $6,000,000 or less in annual milk payroll obligations under s. 126.41 (6) (a), reviewed, and the milk contractor pays the quarterly fund assessment installment amount that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the date when the most recent quarterly installment date under s. 126.46 (6) was due.

AB717, s. 94 Section 94. 126.47 (7) (b) of the statutes is repealed.

AB717, s. 95 Section 95. 126.50 (intro.) of the statutes is amended to read:

AB717,26,9 126.50 Milk contractors; prohibited practices. (intro.) No milk contractor, or officer, employee, or agent of a milk contractor, may do any of the following: