(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).
38,7
Section
7. 126.07 of the statutes is repealed.
38,8
Section
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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Section
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.
38,10
Section
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:
38,11
Section
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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Section
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.
38,13
Section
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.
38,14
Section
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.
38,15
Section
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:
38,16
Section
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:
38,17
Section
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.
38,18
Section
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).
38,19
Section
19. 126.30 (1) (intro.) of the statutes is amended to read:
126.30 (1) General. (intro.) A contributing grain warehouse keeper shall pay an annual fund assessment for each license year. The Except as provided in sub. (5m), the assessment equals $20 or the sum of the following, whichever is greater, unless the department by rule specifies a different assessment:
38,20
Section
20. 126.30 (5m) of the statutes is created to read:
126.30 (5m) Reduced assessment for certain grain warehouse keepers filing security. If a grain warehouse keeper files security under s. 126.31 (1) (b), the grain warehouse keeper'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 warehouse keeper is required to file as determined under s. 126.31 (3) (b) by the amount of the grain warehouse keeper's estimated default exposure, as defined in s. 126.31 (1) (b) 1.
(b) Multiply the amount of the assessment determined under sub. (1) by the amount determined under par. (a).
38,21
Section
21. 126.31 (1) of the statutes is renumbered 126.31 (1) (a).
38,22
Section
22. 126.31 (1) (b) of the statutes is created to read:
126.31 (1) (b) 1. In this paragraph, "estimated default exposure" means 20% of the current local market value of grain that the grain warehouse keeper holds in this state for others.
2. A grain warehouse keeper shall file security with the department, and maintain that security until the department releases it under sub. (8) (am), if the grain warehouse keeper files an annual financial statement under s. 126.28 (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 warehouse keeper'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.
38,23
Section
23. 126.31 (3) of the statutes is renumbered 126.31 (3) (a) and amended to read:
126.31 (3) (a) A Except as provided in par. (b), a grain warehouse keeper who is required to file or maintain security under this section shall at all times maintain security equal to at least 20% of the current local market value of grain that the grain warehouse keeper holds in this state for others.
38,24
Section
24. 126.31 (3) (b) of the statutes is created to read:
126.31 (3) (b) A grain warehouse keeper who is only required to file or maintain security under sub. (1) (b) shall at all times maintain security equal to the grain warehouse keeper's estimated default exposure, as defined in sub. (1) (b) 1., less 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.
38,25
Section
25. 126.31 (8) (a) (intro.) of the statutes is amended to read:
126.31 (8) (a) (intro.) The department may release security filed under sub. (1) (a) if any of the following applies:
38,26
Section
26. 126.31 (8) (am) of the statutes is created to read:
126.31 (8) (am) The department may release security filed under sub. (1) (b), except for any amount of security that the grain warehouse keeper is required to file because sub. (1) (a) applies to the grain warehouse keeper, if the grain warehouse keeper files 2 consecutive annual financial statements under s. 126.28 showing that the grain warehouse keeper 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.
38,27
Section
27. 126.45 (3) (a) of the statutes is amended to read:
126.45 (3) (a) A milk contractor who is required to file security under s. 126.47 (1) (a) is disqualified from the fund until the department releases that security under s. 126.47 (7) (a). This paragraph does not apply, during the period beginning on May 1, 2002, and ending on April 30, 2007, to a qualified producer agent who files security under s. 126.47 (3) (c) (a) 3.
38,28
Section
28. 126.45 (3) (c) 3. and 4. of the statutes are amended to read:
126.45 (3) (c) 3. Failure 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 milk contractor's default.
4. Failure 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 milk contractor's default.
38,29
Section
29. 126.46 (1) (intro.) of the statutes is amended to read:
126.46 (1) General. (intro.) A contributing milk contractor shall pay an annual fund assessment for each license year. The Except as provided in sub. (5m), the assessment equals $20 or the sum of the following, whichever is greater, unless the department by rule specifies a different assessment:
38,30
Section
30. 126.46 (2) (c) of the statutes is amended to read:
126.46 (2) (c) If Except as provided in par. (e), if the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows a current ratio of less than or equal to 1.05 to 1.0, the milk contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 0.1201478.
38,31
Section
31. 126.46 (2) (e) of the statutes is amended to read:
126.46 (2) (e) If the milk contractor has not filed an annual financial statement under s. 126.44 and the milk contractor procures producer milk in this state solely as a producer agent and the milk contractor has not filed an annual financial statement under s. 126.44 or has filed an annual financial statement that shows a current ratio of less than or equal to 1.05 to 1.0, the milk contractor's current ratio assessment rate is 0.00025, except that, for the milk contractor's 5th or higher consecutive full license year of participation in the fund, the milk contractor's current ratio assessment rate is 0.000175.
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Section
32. 126.46 (4) (c) of the statutes is amended to read:
126.46 (4) (c) If Except as provided in par. (e), if the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows negative equity or a debt to equity ratio of at least 3.1 to 1.0, the milk contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 0.8146917.
38,33
Section
33. 126.46 (4) (e) of the statutes is amended to read:
126.46 (4) (e) If the milk contractor has not filed an annual financial statement under s. 126.44 and the milk contractor procures producer milk in this state solely as a producer agent and the milk contractor has not filed an annual financial statement under s. 126.44 or has filed an annual financial statement that shows negative equity or a debt to equity ratio of at least 3.1 to 1.0, the milk contractor's debt to equity ratio assessment rate is 0.00025, except that, for the milk contractor's 5th or higher consecutive full license year of participation in the fund, the milk contractor's debt to equity ratio assessment rate is 0.000175.
38,34
Section
34. 126.46 (5m) of the statutes is created to read:
126.46 (5m) Reduced assessment for certain milk contractors filing security. If a milk contractor files security under s. 126.47 (1) (b), the milk contractor's assessment is the amount determined under sub. (1) reduced by an amount determined as follows:
(a) Divide the amount of security that the milk contractor is required to file as determined under s. 126.47 (3) (b) by the amount of the milk contractor's estimated default exposure, as defined in s. 126.47 (1) (b) 1.
(b) Multiply the amount of the assessment determined under sub. (1) by the amount determined under par. (a).
38,35
Section
35. 126.47 (1) of the statutes is renumbered 126.47 (1) (a).
38,36
Section
36. 126.47 (1) (b) of the statutes is created to read:
126.47 (1) (b) 1. In this paragraph, "estimated default exposure" means 75% of the amount last reported under s. 126.41 (6) (b) or (9).
2. A milk contractor shall file security with the department, and maintain that security until the department releases it under sub. (7) (am), if the milk contractor files an annual financial statement under s. 126.44 (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 2.0 to 1.0 and the milk contractor's estimated default exposure is greater than the following amount:
a. For the license year beginning on May 1, 2003, $18,000,000.
b. For the license year beginning on May 1, 2004, $19,000,000.
c. For a license year that begins on May 1, 2005, or later, $20,000,000.
38,37
Section
37. 126.47 (3) of the statutes is renumbered 126.47 (3) (a), and 126.47 (3) (a) (intro.), 1. and 2. (intro.), as renumbered, are amended to read:
126.47 (3) (a) (intro.) A Except as provided in par. (b), a milk contractor who is required to file or maintain security under this section shall at all times maintain the following amount of security:
