SB527,28,2416
(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.
SB527, s. 103
25Section
103. 126.58 (3) of the statutes is repealed and recreated to read:
SB527,29,5
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.
SB527, s. 104
6Section
104. 126.59 (2) (c) (intro.) of the statutes is renumbered 126.59 (2) (c)
7and amended to read:
SB527,29,118
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.
SB527, s. 105
12Section
105. 126.59 (2) (c) 1. to 4. of the statutes are repealed.
SB527, s. 106
13Section
106. 126.59 (4) of the statutes is created to read:
SB527,29,1814
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.
SB527, s. 107
19Section
107. 126.60 (1) (a) and (b) of the statutes are amended to read:
SB527,29,2320
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.
SB527,30,324
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.
SB527, s. 108
4Section
108. 126.60 (1) (c) of the statutes is repealed.
SB527, s. 109
5Section
109. 126.60 (5m) (intro.) and (a) of the statutes are amended to read:
SB527,30,96
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:
SB527,30,1210
(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.
SB527, s. 110
13Section
110. 126.61 (1) (a) 1. of the statutes is amended to read:
SB527,30,1514
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).
SB527, s. 111
16Section
111. 126.61 (1) (b) of the statutes is repealed and recreated to read:
SB527,30,2017
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.
SB527,30,2321
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:
SB527,31,3
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.
SB527,31,44
b. The vegetable contractor's estimated default exposure exceeds $20,000,000.
SB527, s. 112
5Section
112. 126.61 (1) (bm) of the statutes is repealed.
SB527, s. 113
6Section
113. 126.61 (2) of the statutes is repealed.
SB527, s. 114
7Section
114. 126.61 (3) (a) (intro.) and 1. of the statutes are consolidated,
8renumbered 126.61 (3) and amended to read:
SB527,31,139
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.
SB527, s. 115
14Section
115. 126.61 (3) (a) 2. of the statutes is repealed.
SB527, 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:
SB527,31,2117
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.
SB527, s. 117
22Section
117. 126.61 (3) (b) 1. and 2. of the statutes are repealed.
SB527, s. 118
23Section
118. 126.61 (4) (e) of the statutes is repealed.
SB527, s. 119
24Section
119. 126.61 (7) (a) (intro.) of the statutes is amended to read:
SB527,32,4
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:
SB527, s. 120
5Section
120. 126.61 (7) (a) 1. of the statutes is amended to read:
SB527,32,116
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).
SB527, s. 121
12Section
121. 126.61 (7) (b) of the statutes is repealed.
SB527, s. 122
13Section
122. 126.61 (7) (bm) of the statutes is amended to read:
SB527,32,1914
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.
SB527, s. 123
20Section
123. 126.61 (7) (c) of the statutes is repealed.
SB527, s. 124
21Section
124. 126.62 (2) (intro.) of the statutes is renumbered 126.62 (2) and
22amended to read:
SB527,32,2523
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
:.
SB527, s. 125
1Section
125. 126.62 (2) (a) and (b) of the statutes are repealed.
SB527, s. 126
2Section
126. 126.63 (4) (c) of the statutes is repealed and recreated to read:
SB527,33,53
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:
SB527,33,66
1. The vegetable contractor complies with sub. (5).
SB527,33,87
2. The deferred payment contract specifies a date by which full payment must
8be paid.
SB527,33,139
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.
SB527, s. 127
14Section
127. 126.64 (intro.) of the statutes is amended to read:
SB527,33,17
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:
SB527, s. 128
18Section
128. 126.64 (7) of the statutes is created to read:
SB527,33,2019
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.
SB527, 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:
SB527,34,223
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):
SB527, s. 130
3Section
130. 126.70 (1) (b) and (c) of the statutes are created to read:
SB527,34,64
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:
SB527,34,87
1. The producer or producer agent has a greater than 50 percent ownership
8interest in the grain dealer, milk contractor, or vegetable contractor.
SB527,34,119
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.
SB527,34,1612
(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.
SB527, s. 131
17Section
131. 126.70 (4) (title) of the statutes is amended to read:
SB527,34,1818
126.70
(4) (title)
Auditing and disallowing claims.
SB527, s. 132
19Section
132. 126.70 (4) (f) to (k) of the statutes are created to read:
SB527,34,2120
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.
SB527,34,2422
(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.
SB527,35,4
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.
SB527,35,85
(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).
SB527,35,109
(j) That the claimant has, under sub. (1) (b), permanently waived eligibility to
10file the claim.
SB527,35,1311
(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:
SB527,35,1514
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.
SB527,35,1816
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.
SB527,35,2219
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.
SB527,36,223
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.
SB527,36,33
5. Other circumstances that the department specifies by rule.
SB527, s. 133
4Section
133. 126.70 (6) (g) of the statutes is created to read:
SB527,36,75
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.
SB527, s. 134
8Section
134. 126.71 (1) (a) (intro.) of the statutes is amended to read:
SB527,36,119
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:
SB527, s. 135
12Section
135. 126.71 (1) (d) and (e) of the statutes are repealed.
SB527, s. 136
13Section
136. 126.71 (3) (a) 1. to 3. of the statutes are repealed.
SB527, s. 137
14Section
137. 126.72 (2) of the statutes is amended to read:
SB527,36,2115
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.
SB527, s. 138
22Section
138. 126.73 (1) of the statutes is amended to read:
SB527,37,223
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.
SB527, s. 139
3Section
139. 126.73 (3) of the statutes is created to read:
SB527,37,84
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.
SB527, s. 140
9Section
140. 126.81 (intro.) and (1) of the statutes are renumbered 126.81 (1)
10(intro.) and (a).
SB527, s. 141
11Section
141. 126.81 (1) (c) of the statutes is created to read:
SB527,37,1312
126.81
(1) (c) Specify additional circumstances for denying claims under s.
13126.70 (4) (k).
SB527, s. 142
14Section
142. 126.81 (2) of the statutes is renumbered 126.81 (1) (b) and
15amended to read:
SB527,37,1716
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).