126.40 (7e) (a) (intro.) Seventy-five percent of the following:
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Section
22. 126.40 (7e) (b) of the statutes is created to read:
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.
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Section
23. 126.41 (2) (f) of the statutes is repealed.
155,24
Section
24. 126.41 (6) (intro.) of the statutes is amended to read:
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:
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Section
25. 126.41 (6) (ag) of the statutes is created to read:
126.41 (6) (ag) The amount of payments under par. (a) made under deferred payment contracts.
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Section
26. 126.41 (6) (ar) of the statutes is created to read:
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.
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Section
27. 126.41 (6) (br) 4. of the statutes is created to read:
126.41 (6) (br) 4. The amount of payments under subd. 3. made under deferred payment contracts.
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Section
28. 126.41 (9) (intro.) of the statutes is renumbered 126.47 (5m) (intro.) and amended to read:
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:
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Section
29. 126.41 (9) (a) of the statutes is renumbered 126.47 (5m) (b) 1.
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Section
30. 126.41 (9) (b) of the statutes is renumbered 126.47 (5m) (b) 2.
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Section
31. 126.44 (1) (a) of the statutes is renumbered 126.44 (1) (a) (intro.) and amended to read:
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:
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Section
32. 126.44 (1) (a) 1. of the statutes is created to read:
126.44 (1) (a) 1. That the amount of producer milk reported under s. 126.41 (6) (bg) exceeds 150,000 hundredweight.
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Section
33. 126.44 (1) (a) 2. of the statutes is created to read:
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.
155,34
Section
34. 126.44 (1) (b) of the statutes is renumbered 126.44 (1) (b) (intro.) and amended to read:
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:
(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.
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Section
35. 126.44 (1) (b) 1. of the statutes is created to read:
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.
155,36
Section
36. 126.44 (1) (b) 2. of the statutes is created to read:
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.
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Section
37. 126.44 (1) (c) of the statutes is repealed.
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Section
38. 126.44 (1) (d) of the statutes is amended to read:
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.
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Section
39. 126.44 (1) (e) of the statutes is created to read:
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.
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.
155,40
Section
40. 126.44 (3) of the statutes is amended to read:
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.
155,41
Section
41. 126.44 (6m) of the statutes is amended to read:
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.
155,42
Section
42. 126.46 (1) of the statutes is amended to read:
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.
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Section
43. 126.46 (5m) (a) (intro.) of the statutes is renumbered 126.46 (5m) (a) and amended to read:
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.
155,44
Section
44. 126.46 (5m) (a) 1. of the statutes is repealed.
155,45
Section
45. 126.46 (5m) (a) 2. of the statutes is repealed.
155,46
Section
46. 126.47 (1) (ae) of the statutes is created to read:
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.
155,47
Section
47. 126.47 (1) (b) 1. (intro.) of the statutes is renumbered 126.40 (7e) (intro.) and amended to read:
126.40 (7e) (intro.) In this paragraph, “
estimated “Estimated default exposure" means 75 percent the sum of the following:
155,48
Section
48. 126.47 (1) (b) 1. a. of the statutes is renumbered 126.40 (7e) (a) 1. and amended to read:
126.40 (7e) (a) 1. If the milk contractor reports unpaid milk payroll obligations under s. ss. 126.41 (6) (b) 1. and (9) (a) 126.47 (5m) (b) 1., the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (a) 126.47 (5m) (b) 1., that the milk contractor had at any time during the last 12 months.
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Section
49. 126.47 (1) (b) 1. b. of the statutes is renumbered 126.40 (7e) (a) 2. and amended to read:
126.40 (7e) (a) 2. If the milk contractor reports monthly milk payroll obligations under s. ss. 126.41 (6) (b) 2. and (9) (b) 126.47 (5m) (b) 2., the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 2. or (9) (b) 126.47 (5m) (b) 2., that the milk contractor incurred in any month during the last 12 months.
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Section
50. 126.47 (1) (b) 2. of the statutes is renumbered 126.47 (1) (b).
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Section
51. 126.47 (3) (a) (intro.) of the statutes is renumbered 126.47 (3) (a) and amended to read:
126.47 (3) (a) Except as provided in par. (b), a A milk contractor who is required to file or maintain security under sub. (1) (a) shall at all times maintain security in an amount at least equal to at least 75 percent of the following: the milk contractor's estimated default exposure.
155,52
Section
52. 126.47 (3) (a) 1. of the statutes is repealed.
155,53
Section
53. 126.47 (3) (a) 2. of the statutes is repealed.
155,54
Section
54. 126.47 (3) (ae) of the statutes is created to read:
126.47 (3) (ae) A milk contractor who is required to file or maintain security under sub. (1) (ae) shall at all times maintain security that is at least equal to the milk contractor's highest total, at any time during the preceding 12 months, of unpaid obligations for producer milk procured in this state under a deferred payment contract, excluding any unpaid obligation 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.
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Section
55. 126.47 (3) (b) of the statutes is amended to read:
126.47 (3) (b) A milk contractor who is required to file or maintain security only under sub. (1) (b) shall at all times maintain security at least equal to the milk contractor's estimated default exposure, as defined in sub. (1) (b) 1., less $20,000,000.
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Section
56. 126.47 (3) (c) of the statutes is created to read:
126.47 (3) (c) If more than one of pars. (a) to (b) applies to a milk contractor, the milk contractor shall at all times maintain security at least equal to the greatest amount of security that the milk contractor is required to maintain under any one of pars. (a) to (b).
155,57
Section
57. 126.47 (5m) (title) of the statutes is created to read:
126.47 (5m) (title) Monthly reports.
155,58
Section
58. 126.47 (5m) (a) of the statutes is created to read:
126.47 (5m) (a) The milk contractor's total unpaid obligations at the end of the previous month for producer milk procured in this state under a deferred payment contract, excluding any unpaid obligation 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.
155,59
Section
59. 126.47 (5m) (b) (intro.) of the statutes is created to read:
126.47 (5m) (b) (intro.) Either of the following:
155,60
Section
60. 126.47 (7) (a) (intro.) of the statutes is amended to read:
126.47 (7) (a) (intro.) The department may release security filed under sub. (1) (a), except for any amount of security that the milk contractor is required to file under sub. (1) (ae) or (b), if any of the following applies:
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Section
61. 126.47 (7) (ae) of the statutes is created to read:
126.47 (7) (ae) The department may release security filed under sub. (1) (ae), except for any amount of security that the milk contractor is required to file under sub. (1) (a) or (b), if any of the following applies:
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).
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Section
62. 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.
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Section
63. 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.
155,64
Section
64. 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.
155,65
Section
65. 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:
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Section
66. 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.
