1. The milk contractor has not had any deferred payment contract obligations since the beginning of the milk contractor's last completed fiscal year.
2. The milk contractor files 2 consecutive annual financial statements under s. 126.44 showing that the milk contractor meets the applicable equity requirement and debt to equity ratio under sub. (1) (ae).
126.47 (7) (am) of the statutes is amended to read:
126.47 (7) (am) The department may release security filed under sub. (1) (b), except for any amount of security that the milk contractor is required to file because sub. (1) (a) or (ae) applies to the milk contractor, if the milk contractor files 2 consecutive annual financial statements under s. 126.44 showing that the milk contractor no longer has 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.
126.48 (1) of the statutes is amended to read:
126.48 (1) First monthly payment. By Except as provided under the terms of a deferred payment contract that satisfies the requirements under s. 126.485, by the 4th day of each month, a milk contractor shall pay for producer milk received during the first 15 days of the preceding month. The milk contractor shall base the payment on an estimated price that is at least 80 percent of the class III price published by the regional federal milk market administrator for the month preceding the month in which the milk is received, or 80 percent of the contract price, whichever is greater.
126.48 (2) of the statutes is amended to read:
126.48 (2) Second monthly payment. By Except as provided under the terms of a deferred payment contract that satisfies the requirements under s. 126.485, by the 19th day of each month, a milk contractor shall pay the balance due for producer milk received during the preceding month.
126.48 (3) of the statutes is renumbered 126.487, and 126.487 (intro.), as renumbered, is amended to read:
126.487 Payment explanation. (intro.) The department may, by rule, require a milk contractor to provide a milk producer or producer agent with a written explanation of each payment under this section s. 126.48 or of each deferred payment under s. 126.485. The department may specify the content of the explanation, including information related to any of the following:
126.485 of the statutes is created to read:
126.485 Milk contractors; deferred payment contracts. (1) Contract in writing. A milk contractor may not procure milk from any milk producer or producer agent under a deferred payment contract before the contract is reduced to writing and signed by the parties. The milk contractor shall provide a copy of the signed contract to the other party.
(2) Contents of contract. A milk contractor may not enter into a deferred payment contract unless the deferred payment contract includes all of the following:
(a) A unique contract identification number.
(b) The specific payments required under s. 126.48 (1) or (2), or portion thereof, that are deferred under the contract.
(c) The date by which the milk contractor agrees to make full payment for the milk.
(d) The milk contractor's permanent business location.
(e) A statement in clear and conspicuous print immediately above the contract signature line stating: “The milk contractor (buyer) becomes the owner of any milk that the producer or producer agent (seller) delivers to the milk contractor under this contract. The producer or producer agent relinquishes ownership and control of the milk, and may become an unsecured creditor pending payment.”
(f) A statement that the milk contractor deducts the deferred payment contract assessment established by the department by rule under s. 126.46 (1) from the amount paid to a milk producer or producer agent under a deferred payment contract.
(g) Other information required under this section by the department.
(3) Rule making. The department may promulgate rules to modify the requirements for the contents of deferred payment contracts under sub. (2).
(4) Payment due dates. (a) The due date by which a milk contractor agrees to make full payment for milk under a deferred payment contract may not be more than 120 days after the date on which the milk contractor's payments would have been due under s. 126.48 (2).
(b) A milk contractor shall make full payment under a deferred payment contract by the due date specified in the contract under sub. (2) (c), or if the parties agree by another date that satisfies par. (a).
(5) Deferred payment contract assessment. From the amount that a milk contractor pays to a milk producer or producer agent under a deferred payment contract, the milk contractor shall deduct a deferred payment contract assessment. The assessment shall equal the total amount owed under the contract before the assessment is deducted, multiplied by the deferred payment assessment rate that applies under s. 126.46 (1) when the contract is made. The milk contractor shall disclose the assessment amount.
126.56 (2) (c) of the statutes is created to read:
126.56 (2) (c) A vegetable contractor who spends less than $15,000 per license year to procure processing vegetables from vegetable producers and producer agents.
126.56 (3) (f) of the statutes is repealed.
126.56 (9) (intro.) of the statutes is amended to read:
126.56 (9) Sworn and notarized Applicant statement. (intro.) As part of a license application under sub. (3), an applicant shall provide a sworn and notarized statement, signed by the applicant or an officer of the applicant, that reports all of the following:
126.58 (4m) of the statutes is amended to read:
126.58 (4m) Interim financial statement. The department may, at any time, require a vegetable contractor licensed under s. 126.56 (1) to file an interim financial statement with the department. The vegetable contractor shall provide, with the interim financial statement, the vegetable contractor's sworn and notarized statement that the financial statement is correct. An interim financial statement need not be a reviewed or audited financial statement.
126.70 (4) (gm) of the statutes is created to read:
126.70 (4) (gm) That the claim relates to a payment that first became due, under a deferred payment contract for milk, after the payment due date under s. 126.485 (4) (b).
126.70 (4) (L) of the statutes is created to read:
(L) That the claimant was eligible, at any time before filing a default claim under sub. (2), to file a claim against the defaulting contractor in a federal bankruptcy proceeding under 11 USC 101
et seq. initiated by a party other than the claimant, or a proceeding under ch. 128 initiated by a party other than the claimant, or both, and did not file a claim against the defaulting contractor in each proceeding in which the claimant was eligible to file a claim.
126.73 (4) of the statutes is created to read:
126.73 (4) Subrogation. The department is subrogated to the rights of a claimant who obtains a payment under s. 126.72 (1) or (2) in an amount equal to the payment, against the defaulting contractor and against any party that would otherwise be liable to the claimant for the amount of the default.
126.88 (1) (b) of the statutes is amended to read:
126.88 (1) (b) Maintain a combined fund balance attributable to grain dealers and grain warehouse keepers of at least $1,000,000 $1,200,000, but not more than $6,000,000 $7,000,000.
126.88 (1) (c) of the statutes is repealed.
(1) Emergency rules. Using the procedure under section 227.24 of the statutes, the department of agriculture, trade and consumer protection shall promulgate the rules required under section 126.46 (1) of the statutes for the period before the effective date of the permanent rules promulgated under section 126.46 (1) of the statutes. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, a rule promulgated under this subsection may remain in effect for not more than 24 months. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.
(1) Disallowed claims. The treatment of section 126.70 (4) (L) of the statutes first applies to a claim that is filed on the effective date of this subsection.
This act takes effect on the 30th day after the day of publication, except as follows:
(1) Disallowed claims. The treatment of section 126.70 (4) (L) of the statutes takes effect on the 60th day after the effective date of this subsection.