AB698: Bill Text

AB698,1 Section 1. 126.01 (20) (intro.) and (b) of the statutes are consolidated, renumbered 126.01 (20) and amended to read:

AB698,4,6 126.01 (20) “Reviewed financial statement" means a contractor's financial statement, other than an audited financial statement, if all of the following apply: (b) The financial statement that is reviewed by an independent certified public accountant licensed or certified under ch. 442.

AB698,2 Section 2. 126.01 (20) (a) of the statutes is repealed.

AB698,3 Section 3. 126.11 (3) (f) of the statutes is repealed.

AB698,4 Section 4. 126.11 (6) of the statutes is amended to read:

AB698,4,17 126.11 (6) Fee credits. If the combined balance in the fund contributed by grain dealers and grain warehouse keepers, as defined in s. 126.25 (9), exceeds $2,000,000 $2,300,000 on May 31 of any license year, the department shall credit 50 percent of the excess amount against license fees charged under sub. (4) (b) to contributing grain dealers who file timely license renewal applications for the next license year. The department shall credit each contributing grain dealer on a prorated basis, in proportion to the total fees that the grain dealer paid under sub. (4) (b) for the 4 preceding license years as a contributing grain dealer.

AB698,5 Section 5. 126.11 (9) (intro.) of the statutes is amended to read:

AB698,5,2 126.11 (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:

AB698,6 Section 6. 126.13 (1) (a) 2. of the statutes is amended to read:

AB698,5,6 126.13 (1) (a) 2. Any deferred payment contract obligations under s. 126.11 (9) (c) to a grain producer or producer agent that has not, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the grain dealer.

AB698,7 Section 7. 126.13 (1) (b) 2. of the statutes is amended to read:

AB698,5,10 126.13 (1) (b) 2. Any deferred payment contract obligations under s. 126.11 (9) (c) to a grain producer or producer agent that has not, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the grain dealer.

AB698,8 Section 8. 126.13 (1) (d) of the statutes is amended to read:

AB698,5,15 126.13 (1) (d) A Except as provided under par. (e), a grain dealer licensed under s. 126.11 may not incur any obligations under deferred payment contracts for grain procured in this state unless the contractor first notifies the department and files an annual financial statement with the department.

AB698,9 Section 9. 126.13 (1) (e) of the statutes is created to read:

AB698,5,21 126.13 (1) (e) A grain dealer licensed under s. 126.11 is not required to notify the department or file an annual financial statement with the department under par. (d) for an obligation incurred under a deferred payment contract, for grain procured in this state, with a grain producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the grain dealer.

AB698,10 Section 10. 126.13 (4m) of the statutes is amended to read:

AB698,6,3 126.13 (4m) Interim financial statement. The department may, at any time, require a grain dealer licensed under s. 126.11 to file an interim financial statement with the department. The grain dealer shall provide, with the interim financial statement, the grain dealer's sworn and notarized statement that the financial statement is correct. An interim financial statement need not be a reviewed financial statement or an audited financial statement.

AB698,11 Section 11. 126.16 (1) (b) of the statutes is amended to read:

AB698,6,12 126.16 (1) (b) A grain dealer who reports any deferred payment contract obligations under s. 126.11 (9) (c) or 126.13 (1) (d), other than deferred payment contract obligations to a grain producer or producer agent who permanently waived eligibility to file a default claim under s. 126.70 (1) (b) and (c), shall file security with the department, and maintain that security until the department releases it under sub. (8) (b), unless the grain dealer has positive equity and the grain dealer's annual financial statement under s. 126.13 (1) shows that the grain dealer has positive equity and a debt to equity ratio of not more than 4.0 to 1.0.

AB698,12 Section 12. 126.16 (1) (c) 1. b. of the statutes is amended to read:

AB698,6,19 126.16 (1) (c) 1. b. The grain dealer's highest total, at any time during the preceding 12 months, of unpaid obligations for producer grain procured in this state under deferred payment contracts, excluding any unpaid obligations under a deferred payment contract, for grain procured in this state, with a grain producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the grain dealer.

AB698,13 Section 13. 126.16 (3) (a) (intro.) of the statutes is amended to read:

AB698,6,23 126.16 (3) (a) (intro.) Except as provided in par. (b), a A grain dealer who is required to file or maintain security under this section sub. (1) (a) shall at all times maintain security that is at least equal to the sum of the following:

AB698,14 Section 14. 126.16 (3) (a) 2. of the statutes is amended to read:

AB698,7,6 126.16 (3) (a) 2. The grain dealer's highest total, at any time during the preceding 12 months, of unpaid obligations for producer grain procured in this state under deferred payment contracts, excluding any unpaid obligation under a deferred payment contract, for grain procured in this state, with a grain producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the grain dealer.

AB698,15 Section 15. 126.16 (3) (am) of the statutes is created to read:

AB698,7,15 126.16 (3) (am) A grain dealer who is required to file or maintain security under sub. (1) (b) shall at all times maintain security that is at least equal to the grain dealer's highest total, at any time during the preceding 12 months, of unpaid obligations for producer grain procured in this state under deferred payment contracts, excluding any unpaid obligation under a deferred payment contract, for grain procured in this state, with a grain producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the grain dealer.

AB698,16 Section 16. 126.16 (3) (b) of the statutes is amended to read:

AB698,7,19 126.16 (3) (b) A grain dealer who is required to file or maintain security only under sub. (1) (c) 2. shall at all times maintain security at least equal to the grain dealer's estimated default exposure, as defined in sub. (1) (c) 1., less $20,000,000.

AB698,17 Section 17. 126.16 (3) (c) of the statutes is created to read:

AB698,7,24 126.16 (3) (c) If more than one of pars. (a) to (b) applies to a grain dealer, the grain dealer shall at all times maintain security at least equal to the greatest amount of security that the grain dealer is required to maintain under any one of pars. (a) to (b).

AB698,18 Section 18. 126.26 (5) of the statutes is amended to read:

AB698,8,9 126.26 (5) Fee credit. If Beginning on January 1, 2023, if the combined fund balance contributed by grain warehouse keepers and grain dealers, as defined in s. 126.10 (9), exceeds $300,000 $2,300,000 on May 31 of any license year, the department shall credit 12.5 percent of the excess amount against grain warehouse inspection fees charged under sub. (3) (b) to contributing grain warehouse keepers who file timely license renewal applications for the next license year. The department shall credit each contributing grain warehouse keeper on a prorated basis, in proportion to the total inspection fees that the warehouse keeper has paid under sub. (3) (b) for the 4 preceding license years.

AB698,19 Section 19. 126.28 (4m) of the statutes is amended to read:

AB698,8,17 126.28 (4m) Interim financial statement. The department may, at any time, require a grain warehouse keeper licensed under s. 126.26 (1) to file an interim financial statement with the department. The grain warehouse keeper shall provide, with the interim financial statement, the warehouse keeper's sworn and notarized statement that the financial statement is correct. An interim financial statement need not be a reviewed financial statement or an audited financial statement.

AB698,20 Section 20. 126.40 (6m) of the statutes is created to read:

AB698,8,21 126.40 (6m) “Deferred payment contract” means a contract for the procurement of producer milk under which all of the following apply to a milk contractor's payment:

AB698,9,2 (a) For producer milk received during the first 15 days of the preceding month, the milk contractor's payment is due after the 4th day of the month, based 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.

AB698,9,4 (b) For producer milk received during the preceding month, the balance of the milk contractor's payment is due after the 19th day of the month.

AB698,21 Section 21. 126.40 (7e) (a) (intro.) of the statutes is created to read:

AB698,9,6 126.40 (7e) (a) (intro.) Seventy-five percent of the following:

AB698,22 Section 22. 126.40 (7e) (b) of the statutes is created to read:

AB698,9,13 126.40 (7e) (b) The milk contractor's highest total, at any time during the 12 preceding months, of unpaid obligations for producer milk procured in this state under a deferred payment contract, excluding any unpaid obligations under a deferred payment contract, for milk procured in this state, with a milk producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the milk contractor.

AB698,23 Section 23. 126.41 (2) (f) of the statutes is repealed.

AB698,24 Section 24. 126.41 (6) (intro.) of the statutes is amended to read:

AB698,9,19 126.41 (6) Sworn and notarized Applicant statement. (intro.) As part of a license application under sub. (2), an applicant shall provide a sworn and notarized statement, signed by the applicant or an authorized officer of the applicant, that reports all of the following information:

AB698,25 Section 25. 126.41 (6) (ag) of the statutes is created to read:

AB698,9,22 126.41 (6) (ag) The amount of payments under par. (a) made under deferred payment contracts.

AB698,26 Section 26. 126.41 (6) (ar) of the statutes is created to read:

AB698,10,3 126.41 (6) (ar) Whether the applicant has had any obligations under deferred payment contracts, for milk procured in this state, at any time since the beginning of the applicant's last completed fiscal year.

AB698,27 Section 27. 126.41 (6) (br) 4. of the statutes is created to read:

AB698,10,6 126.41 (6) (br) 4. The amount of payments under subd. 3. made under deferred payment contracts.

AB698,28 Section 28. 126.41 (9) (intro.) of the statutes is renumbered 126.47 (5m) (intro.) and amended to read:

AB698,10,11 126.47 (5m) (intro.) A milk contractor who files and maintains is required to file or maintain security under s. 126.47 this section shall provide a monthly report to the department containing either all of the following:

AB698,29 Section 29. 126.41 (9) (a) of the statutes is renumbered 126.47 (5m) (b) 1.

AB698,30 Section 30. 126.41 (9) (b) of the statutes is renumbered 126.47 (5m) (b) 2.

AB698,31 Section 31. 126.44 (1) (a) of the statutes is renumbered 126.44 (1) (a) (intro.) and amended to read:

AB698,10,20 126.44 (1) (a) (intro.) 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 150,000 hundredweight of milk under s. 126.41 (6) (bg). if the milk contractor's license application shows any of the following:

AB698,32 Section 32. 126.44 (1) (a) 1. of the statutes is created to read:

AB698,10,23 126.44 (1) (a) 1. That the amount of producer milk reported under s. 126.41 (6) (bg) exceeds 150,000 hundredweight.

AB698,33 Section 33. 126.44 (1) (a) 2. of the statutes is created to read:

AB698,11,3 126.44 (1) (a) 2. Any deferred payment contract obligations under s. 126.41 (6) (ar) to a milk producer or producer agent that has not, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the milk contractor.

AB698,34 Section 34. 126.44 (1) (b) of the statutes is renumbered 126.44 (1) (b) (intro.) and amended to read:

AB698,11,9 126.44 (1) (b) (intro.) Except as provided in par. (c) or (d), a milk contractor licensed under s. 126.41 (1) shall file an annual financial statement with the department during each license year. The if the milk contractor's license application for that year shows any of the following:

AB698,11,14 (cm) A milk contractor shall file the an annual financial statement under par. (b) by the 15th day of the 4th month following the close of the milk contractor's fiscal year. The department may extend the filing deadline for up to 30 days if the milk contractor, or the accountant preparing the financial statement, files a written extension request at least 10 days before the filing deadline.

AB698,35 Section 35. 126.44 (1) (b) 1. of the statutes is created to read:

AB698,11,18 126.44 (1) (b) 1. That the amount of producer milk reported under s. 126.41 (6) (bg) exceeds 150,000 hundredweight and the milk contractor is not a contributing milk contractor who procures milk in this state solely as a producer agent.

AB698,36 Section 36. 126.44 (1) (b) 2. of the statutes is created to read:

AB698,11,22 126.44 (1) (b) 2. Any deferred payment contract obligations under s. 126.41 (6) (ar) to a milk producer or producer agent that has not, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the milk contractor.

AB698,37 Section 37. 126.44 (1) (c) of the statutes is repealed.

AB698,38 Section 38. 126.44 (1) (d) of the statutes is amended to read:

AB698,12,9 126.44 (1) (d) Rather than filing an annual financial statement under par. (b), a milk contractor who is disqualified under s. 126.45 (3) (a) may file, during each fiscal year, a compilation of financial information that is satisfactory to the department along with the milk contractor's sworn and notarized statement that the financial information is correct. The milk contractor shall file the financial information by the 15th day of the 4th month following the close of the milk contractor's fiscal year. The department may extend the filing deadline for up to 30 days if the milk contractor, or an accountant preparing the financial information, files a written extension request at least 10 days before the filing deadline.

AB698,39 Section 39. 126.44 (1) (e) of the statutes is created to read:

AB698,12,14 126.44 (1) (e) 1. Except as provided in subd. 2., a milk contractor licensed under s. 126.41 may not incur any obligations under a deferred payment contract for milk procured in this state unless the contractor first notifies the department and files an annual financial statement with the department.

AB698,12,19 2. A milk contractor licensed under s. 126.41 is not required to notify the department or file an annual financial statement with the department under subd. 1. for an obligation incurred under a deferred payment contract, for milk procured in this state, with a milk producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the milk contractor.

AB698,40 Section 40. 126.44 (3) of the statutes is amended to read:

AB698,13,3 126.44 (3) Quarterly financial statements. A milk contractor licensed under s. 126.41 (1) who is not a contributing milk contractor shall file quarterly financial statements with the department for the first 3 quarters in each of the milk contractor's fiscal years. The milk contractor shall file each quarterly financial statement no later than 60 days after the end of the fiscal quarter to which the financial statement pertains. With each quarterly financial statement, the milk contractor shall include the milk contractor's sworn and notarized statement that the financial statement is correct.

AB698,41 Section 41. 126.44 (6m) of the statutes is amended to read:

AB698,13,10 126.44 (6m) Interim financial statement. The department may, at any time, require a milk contractor licensed under s. 126.41 (1) to file an interim financial statement with the department. With the interim financial statement, the milk contractor shall provide the milk contractor's sworn and notarized statement that the financial statement is correct. An interim financial statement need not be a reviewed financial statement or an audited financial statement.

AB698,42 Section 42. 126.46 (1) of the statutes is amended to read:

AB698,13,15 126.46 (1) General. A contributing milk contractor shall pay an annual fund assessment for each license year, including an assessment for deferred payment contracts entered into under s. 126.485, in the amount specified by the department by rule.

AB698,43 Section 43. 126.46 (5m) (a) (intro.) of the statutes is renumbered 126.46 (5m) (a) and amended to read:

AB698,13,20 126.46 (5m) (a) Divide the amount of security that the milk contractor is required to file under s. 126.47 (3) (b) by 75 percent of the following: the amount of the milk contractor's estimated default exposure.

AB698,44 Section 44. 126.46 (5m) (a) 1. of the statutes is repealed.

AB698,45 Section 45. 126.46 (5m) (a) 2. of the statutes is repealed.

AB698,46 Section 46. 126.47 (1) (ae) of the statutes is created to read:

AB698,14,6 126.47 (1) (ae) A milk contractor who reports any deferred payment contract obligations under s. 126.41 (6) (ar) or 126.44 (1) (e) 1., other than deferred payment contract obligations to a milk producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the milk contractor, shall file security with the department, and maintain that security until the department releases it under sub. (7) (ae), unless the milk contractor's annual financial statement under s. 126.44 (1) shows that the milk contractor has positive equity and a debt to equity ratio of not more than 4.0 to 1.0.

AB698,47 Section 47. 126.47 (1) (b) 1. (intro.) of the statutes is renumbered 126.40 (7e) (intro.) and amended to read: