2003 WISCONSIN ACT 38
An Act to repeal 126.07 and 126.72 (4);
to renumber 126.31 (1) and 126.47 (1); to renumber and amend 126.16 (3), 126.31 (3), 126.47 (3) and 126.61 (3); to amend 20.115 (1) (v), 20.115 (1) (wb), 25.463, 126.05 (2), 126.08, 126.14 (2) (b) 3. and 4., 126.15 (1) (intro.), 126.16 (8) (a) (intro.), 126.16 (8) (b) (intro.), 126.29 (2) (a), 126.30 (1) (intro.), 126.31 (8) (a) (intro.), 126.45 (3) (a), 126.45 (3) (c) 3. and 4., 126.46 (1) (intro.), 126.46 (2) (c), 126.46 (2) (e), 126.46 (4) (c), 126.46 (4) (e), 126.47 (7) (a) (intro.), 126.59 (2) (c) 3. and 4., 126.60 (1) (intro.), 126.61 (1) (c) (intro.), 126.61 (7) (a) (intro.), 126.61 (7) (b) (intro.), 126.71 (1) (d), 126.71 (1) (e), 126.72 (1), 126.73, 126.86 (1) (f) and (g) and 126.90; to repeal and recreate 126.06 and 126.72 (2) and (3); and to create 20.115 (1) (wc), 126.15 (6m), 126.16 (1) (c), 126.16 (3) (b), 126.16 (8) (bm), 126.30 (5m), 126.31 (1) (b), 126.31 (3) (b), 126.31 (8) (am), 126.46 (5m), 126.47 (1) (b), 126.47 (3) (b), 126.47 (7) (am), 126.60 (5m), 126.61 (1) (bm), 126.61 (3) (b) and 126.61 (7) (bm) of the statutes; relating to: the agricultural producer security program, granting rule-making authority, and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
38,1
Section
1. 20.115 (1) (v) of the statutes is amended to read:
20.115 (1) (v) Agricultural producer security; bonds contingent financial backing. From the agricultural producer security fund, a sum sufficient to acquire the surety bonds contingent financial backing required under
ss. s. 126.06 and 126.07.
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2. 20.115 (1) (wb) of the statutes is amended to read:
20.115 (1) (wb) Agricultural producer security; bond proceeds of contingent financial backing. From the agricultural producer security fund, all moneys received under s. 126.72 (2) and (3) to be used to make default claim payments under s. 126.71 (1).
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3. 20.115 (1) (wc) of the statutes is created to read:
20.115 (1) (wc) Agricultural producer security; repayment of contingent financial backing. From the agricultural producer security fund, a sum sufficient to make payments under s. 126.06 (3).
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4. 25.463 of the statutes is amended to read:
25.463 Agricultural producer security fund. There is established a separate nonlapsible trust fund designated as the agricultural producer security fund, to consist of all fees, surcharges, assessments, reimbursements, and proceeds of surety bonds contingent financial backing received by the department of agriculture, trade and consumer protection under ch. 126.
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5. 126.05 (2) of the statutes is amended to read:
126.05 (2) The department shall deposit into the fund all fees, surcharges, assessments, reimbursements, and proceeds of surety bonds contingent financial backing that the department collects under this chapter. The department shall keep a record by contractor and industry, of all deposits.
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6. 126.06 of the statutes is repealed and recreated to read:
126.06 Contingent financial backing.
(1) Department to acquire. Using moneys appropriated under s. 20.115 (1) (v), the department shall acquire contingent financial backing to secure payment under s. 126.72 (2) of claims against contributing contractors, as defined in s. 126.68 (1). The contingent financial backing may be in one or more of the following forms:
(a) A surety bond.
(b) A contract to provide a cash loan to the fund whenever the department requests a loan payable as provided in sub. (3).
(2) Amount. The department shall acquire contingent financial backing under sub. (1) in the amount that, in the department's judgment, is sufficient to meet reasonably foreseeable needs under s. 126.72 (2), except as follows:
(a) The department may acquire a smaller amount of contingent financial backing if, in the department's judgment, that is necessary to avoid excessive acquisition costs or repayment liabilities.
(b) The department may not acquire contingent financial backing in an amount that exceeds $17,000,000, unless the department establishes a different maximum amount by rule.
(3) Repayment. The department shall pay principal and interest costs of any loan provided under sub. (1) (b) only from the appropriation from the agricultural producer security fund under s. 20.115 (1) (wc).
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7. 126.07 of the statutes is repealed.
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8. 126.08 of the statutes is amended to read:
126.08 Start-up loan to fund; repayment. On January 1, 2002, $2,000,000 is transferred as a loan from the agrichemical management fund, to the agricultural producer security fund. The department shall repay this loan principal, plus interest compounded at 5% annually, from the agricultural producer security fund by July 1, 2006. Interest shall be compounded at 5% annually before July 1, 2003, and at 2% annually beginning on July 1, 2003. The department shall transfer at least $250,000 from the agricultural producer security fund to the agrichemical management fund on July 1 of each year, beginning on July 1, 2003. The department may accelerate the loan repayment, at its discretion.
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9. 126.14 (2) (b) 3. and 4. of the statutes are amended to read:
126.14 (2) (b) 3. The grain dealer fails to reimburse the department, within 60 days after the department issues a reimbursement demand under s. 126.73 (1), for the full amount that the department pays to claimants under s. 126.72 (1) or under s. 126.72 (2) with the proceeds of a loan under s. 126.06 (1) (b) because of that grain dealer's default.
4. The grain dealer fails to reimburse a bond surety, within 60 days after the bond surety issues a reimbursement demand under s. 126.73 (2), for the full amount that the surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants affected by that grain dealer's default.
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10. 126.15 (1) (intro.) of the statutes is amended to read:
126.15 (1) General. (intro.) A contributing grain dealer shall pay an annual fund assessment for each license year. The Except as provided in sub. (6m), the assessment equals $20 or the sum of the following, whichever is greater, unless the department by rule specifies a different assessment:
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11. 126.15 (6m) of the statutes is created to read:
126.15 (6m) Reduced assessment for certain grain dealers filing security. If a grain dealer files security under s. 126.16 (1) (c), the grain dealer's assessment is the amount determined under sub. (1) reduced by an amount determined as follows:
(a) Divide the amount of security that the grain dealer is required to file as determined under s. 126.16 (3) (b) by the amount of the grain dealer's estimated default exposure, as defined in s. 126.16 (1) (c) 1.
(b) Multiply the amount of the assessment determined under sub. (1) by the amount determined under par. (a).
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12. 126.16 (1) (c) of the statutes is created to read:
126.16 (1) (c) 1. In this paragraph, "estimated default exposure" means the sum of the following:
a. Thirty-five percent of the grain dealer's average monthly payment for the 3 months, during the preceding 12 months, in which the grain dealer made the largest monthly payments for producer grain procured in this state.
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.
2. A grain dealer shall file security with the department, and maintain that security until the department releases it under sub. (8) (bm), if the grain dealer files an annual financial statement under s. 126.13 (1) that shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0 and the grain dealer's estimated default exposure is greater than the following amount:
a. For the license year beginning on September 1, 2003, $18,000,000.
b. For the license year beginning on September 1, 2004, $19,000,000.
c. For a license year that begins on September 1, 2005, or later, $20,000,000.
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13. 126.16 (3) of the statutes is renumbered 126.16 (3) (a), and 126.16 (3) (a) (intro.) and 1., as renumbered, are amended to read:
126.16 (3) (a) (intro.) A Except as provided in par. (b), a grain dealer who is required to file or maintain security under this section shall at all times maintain security that is at least equal to the sum of the following:
1. An amount equal to 35% Thirty-five percent of the grain dealer's average monthly payment for the 3 months, during the preceding 12 months, in which the grain dealer made the largest monthly payments for producer grain procured in this state, except that this amount is not required of a contributing grain dealer after December 1, 2002.
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14. 126.16 (3) (b) of the statutes is created to read:
126.16 (3) (b) A grain dealer who is only required to file or maintain security under sub. (1) (c) shall at all times maintain security equal to the grain dealer's estimated default exposure, as defined in sub. (1) (c) 1., less the following amount:
1. For the license year beginning on September 1, 2003, $18,000,000.
2. For the license year beginning on September 1, 2004, $19,000,000.
3. For a license year that begins on September 1, 2005, or later, $20,000,000.
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15. 126.16 (8) (a) (intro.) of the statutes is amended to read:
126.16 (8) (a) (intro.) The department may release security filed under sub. (1) (a), except for any amount of security that the grain dealer is required to file because sub. (1) (b) or (c) applies to the grain dealer, if any of the following applies:
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16. 126.16 (8) (b) (intro.) of the statutes is amended to read:
126.16 (8) (b) (intro.) The department may release security filed under sub. (1) (b), except for any amount of security that the grain dealer is required to file because sub. (1) (a) or (c) applies to the grain dealer, if any of the following applies:
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17. 126.16 (8) (bm) of the statutes is created to read:
126.16 (8) (bm) The department may release security filed under sub. (1) (c), except for any amount of security that the grain dealer is required to file because sub. (1) (a) or (b) applies to the grain dealer, if the grain dealer files 2 consecutive annual financial statements under s. 126.13 showing that the grain dealer 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 4.0 to 1.0.
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18. 126.29 (2) (a) of the statutes is amended to read:
126.29 (2) (a) A grain warehouse keeper who is required to file security under s. 126.31 (1) (a) is disqualified from the fund until the department releases that security under s. 126.31 (8) (a).
