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AB717, s. 70 4Section 70. 126.44 (5) of the statutes is repealed and recreated to read: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:
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.
Loading...
Loading...