ATCP 101.245
ATCP 101.245 Vegetable contractor fund assessments. ATCP 101.245(1)(1)
General. A contributing vegetable contractor shall pay an annual fund assessment for each license year. The annual fund assessment shall be calculated under this section, rather than under s.
126.60 (1), Stats. Except as provided in subs.
(3) and
(4), the annual fund assessment shall be calculated according to sub.
(2).
ATCP 101.245(2)(a)
(a) A contributing vegetable contractor that reports less than $500,000 in contract obligations under s.
126.56 (9) (am), Stats., shall pay a fund assessment equal to the greater of the following amounts:
ATCP 101.245(2)(a)2.
2. The sum of the amounts calculated under s.
126.60 (1) (a) and
(b), Stats. If all of the contract obligations reported by the vegetable contractor under s.
126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then further divide this amount by 2.
ATCP 101.245(2)(b)
(b) A contributing vegetable contractor that reports at least $500,000 but less than $4 million in contract obligations under s.
126.56 (9) (am), Stats., shall pay a fund assessment equal to the greater of the following amounts:
ATCP 101.245(2)(b)2.
2. The sum of the amounts calculated under s.
126.60 (1) (a) and
(b), Stats. If all of the contract obligations reported by the vegetable contractor under s.
126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then further divide this amount by 2.
ATCP 101.245(2)(c)
(c) A contributing vegetable contractor who reports $4 million or more in contract obligations under s.
126.56 (9) (am), Stats., shall pay a fund assessment equal to the greater of the following amounts:
ATCP 101.245(2)(c)2.
2. The sum of the amounts calculated under s.
126.60 (1) (a) and
(b), Stats. If all of the contract obligations reported by the vegetable contractor under s.
126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then further divide this amount by 2.
ATCP 101.245(2)(d)
(d) If the fund balance attributable to vegetable contractors is less than $800,000 on November 30 of the preceding license year, a contributing vegetable contractor shall pay the sum of the amount calculated under either (a), (b), or (c) and the lesser of:
ATCP 101.245(2)(d)1.
1. $50,000. If all of the contract obligations reported by the vegetable contractor under s.
126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then this amount is $25,000.
ATCP 101.245(2)(d)2.
2. The amount of contract obligations under s.
126.56 (9) (am), Stats., multiplied by 0.002. If all of the contract obligations reported by the vegetable contractor under s.
126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then divide this amount by 2.
ATCP 101.245(3)
(3) Reduced assessment. A contributing vegetable contractor's annual fund assessment under sub.
(1) is reduced by the following applicable amounts:
ATCP 101.245(3)(b)
(b) The amount of any refund that applies under s.
ATCP 101.25. The refund shall be paid as a credit against the contributing vegetable contractor's annual fund assessment for the next license year, as provided in s.
ATCP 101.25 (3).
ATCP 101.245(4)
(4) Exemption. A contributing vegetable contractor is not required to pay any fund assessment under this section for a license year if all of the following apply:
ATCP 101.245(4)(a)
(a) The vegetable contractor was classified as a contributing vegetable contractor in each of the 5 license years immediately preceding that license year.
ATCP 101.245(4)(b)
(b) The fund balance attributable to vegetable contractors was at least $1.5 million on November 30 of the last preceding license year.
ATCP 101.245(4)(c)
(c) The overall fund balance was at least $11 million on November 30 of the last preceding license year.
ATCP 101.245 History
History: CR 07-073: cr.
Register December 2008 No. 636, eff. 1-1-09; corrections in (2) (a) 2., (b) 2., (c) 2., (3) (a) made under s.
13.92 (4) (b) 7., Stats.,
Register June 2011 No. 666;
EmR1803: emerg. am. (2) (a) (intro.), 2., (b) (intro.), 2., (c) (intro.), 2., cr. (2) (d), eff. 2-1-2018; CR 17-047: am. (2) (a) (intro.), 2., (b) (intro.), 2., (c) (intro.), 2., cr. (2) (d) Register November 2019 No. 767, eff. 12-1-19; correction in (2) (c) (intro.) made under s. 35.17, Stats., Register November 2019 No. 767.
ATCP 101.25
ATCP 101.25
Fund assessment temporarily affected by merger or acquisition; partial refund. ATCP 101.25(1)(1)
Partial refund of assessment. The department may refund part of an annual fund assessment paid by a contributing vegetable contractor under s.
126.60, Stats., if all of the following apply:
ATCP 101.25(1)(a)
(a) The contractor paid the full amount of the assessment, including any late payment penalties that apply under s.
126.60 (6) (d), Stats.
ATCP 101.25(1)(c)
(c) The assessment was based on the contractor's financial statement for the fiscal year in which the merger or acquisition under par.
(b) took effect.
ATCP 101.25(1)(d)
(d) The contractor's financial statement, for the fiscal year in which the merger or acquisition under par.
(b) took effect, caused the sum of the contractor's current ratio assessment rate under s.
126.60 (2), Stats., and debt to equity ratio assessment rate under s.
126.60 (4), Stats., to increase by at least 100% compared to the preceding license year.
ATCP 101.25(1)(e)
(e) The contractor's annual financial statements, for the fiscal years immediately preceding and immediately following the fiscal year in which the merger or acquisition under par.
(b) took effect, show positive equity, a current ratio of at least 1.25 to 1.00 and a debt to equity ratio of no more than 3.0 to 1.0.
ATCP 101.25(1)(f)
(f) In the license year immediately following the license year for which the contractor paid the assessment, the sum of the contractor's current ratio assessment rate under s.
126.60 (2), Stats., and debt to equity assessment rate under s.
126.60 (4), Stats., declines by at least 50% compared to the license year for which the contractor paid the assessment.
ATCP 101.25(1)(g)
(g) The contractor requests the refund in writing, by February 1 of the contractor's next license year.
ATCP 101.25(2)
(2) Refund amount. The amount of the refund under sub.
(1) shall equal 75% of the difference between the assessment amount paid by the vegetable contractor and the assessment amount required of the vegetable contractor in the next license year.
ATCP 101.25(3)
(3) Refund paid as credit against next year's assessment. ATCP 101.25(3)(a)(a) The department shall pay the refund under sub.
(1) as a credit against the contractor's assessment for the next license year. The department shall apportion the credit, pro rata, against the quarterly assessment installments required of the contractor under s.
126.60 (6), Stats., in that next license year. If the credit exceeds the total assessment required of the contractor in that next license year, the department shall credit the balance in the same fashion against assessments required of the contractor in subsequent consecutive license years, except that the department may not grant a credit in more than 4 subsequent license years.
ATCP 101.25(3)(b)
(b) The department may not pay any refund under sub.
(1), except in the manner prescribed in par.
(a). The department may not pay the refund to any person other than the contractor who paid the original assessment on which the refund is given.
ATCP 101.25 History
History: Emerg. cr. eff. 1-29-04;
CR 04-030: cr.
Register September 2004 No. 585, eff. 10-1-04.
ATCP 101.255
ATCP 101.255 Reduced fund assessment for contributing vegetable contractors who also maintain security. ATCP 101.255(1)(1)
Voluntary Security. A licensed vegetable contractor may at any time file security with the department, regardless of whether the vegetable contractor is required to file security. Except as provided in sub.
(2), a voluntary security filing under this subsection does not relieve a vegetable contractor of any other obligation to file security or pay fund assessments.
ATCP 101.255 Note
Note: A vegetable contractor who files voluntary security under sub. (1) may be eligible for a reduction in fund assessments under sub. (2), and may be able to make a more favorable disclosure to producers under s.
ATCP 101.26 (2).
ATCP 101.255(2)
(2) Reduced assessment. If, for the duration of a license year, a contributing vegetable contractor maintains security under sub.
(1) in an amount that is at least equal to the vegetable contractor's estimated default exposure less the maximum fund reimbursement amount, the vegetable contractor's annual fund assessment under s.
126.60, Stats., for that year is reduced by an amount that is determined as follows:
ATCP 101.255(2)(a)
(a) Subtract the maximum fund reimbursement from the vegetable contractor's estimated default exposure.
ATCP 101.255(2)(b)
(b) Divide the result in par.
(a) by the vegetable contractor's estimated default exposure.
ATCP 101.255(2)(c)
(c) Multiply the result in par.
(b) by the amount of the vegetable contractor's annual fund assessment under s.
126.60 (1), Stats., disregarding any assessment reduction under s.
126.60 (5m), Stats.
ATCP 101.255 History
History: Emerg. cr. eff. 4-29-04;
CR 04-030: cr.
Register September 2004 No. 585, eff. 10-1-04;
CR 05-068: r. and recr. (1), am. (2) (intro.)
Register April 2006 No. 604, eff. 5-1-06; correction in (2) (intro.) made under s.
13.92 (4) (b) 7., Stats.,
Register June 2011 No. 666.
ATCP 101.26(1)(1)
Disclosure required. A vegetable contractor shall make a disclosure under sub.
(2) to every vegetable producer and producer agent with whom the vegetable contractor enters into a vegetable procurement contract. The vegetable contractor shall make the disclosure, in the form prescribed under sub.
(2), as part of each proposed vegetable procurement contract offered to the vegetable producer or producer agent. The disclosure shall be clear and conspicuous, and shall be set apart from every other writing.
ATCP 101.26(2)
(2) Form of disclosure. A disclosure under sub.
(1) shall consist of a verbatim copy of one of the following statements, as applicable:
ATCP 101.26(2)(a)
(a) Except as provided in par.
(b) or
(c), the following statement if the vegetable contractor's estimated default exposure is equal to or less than the sum of the maximum fund reimbursement amount and any security amount the vegetable contractor has on file with the department:
IMPORTANT NOTICE
[Name of vegetable contractor] participates in Wisconsin's Agricultural Producer Security program as a licensed vegetable contractor. If we fail to pay you for vegetables when payment is due, you may file a claim under this program. The program may reimburse up to 90% of the first $40,000 of your allowed claim, 85% of the next $40,000, 80% of the next $40,000, and 75% of any additional amount. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 101.26(2)(b)
(b) The following statement if the vegetable contractor's estimated default exposure exceeds the sum of the maximum fund reimbursement amount and any security amount the vegetable contractor has on file with the department:
IMPORTANT NOTICE
[Name of vegetable contractor] participates in Wisconsin's Agricultural Producer Security Program as a licensed vegetable contractor. If we fail to pay you for vegetables when payment is due, you may file a claim under this program. The program may reimburse up to 90% of the first $40,000 of an allowed claim, 85% of the next $40,000, 80% of the next $40,000, and 75% of any additional amount. However, our “estimated default exposure" exceeds available reimbursement funding, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 101.26(2)(c)
(c) The following statement if the vegetable contractor is not required to contribute to the fund or file security with the department, and has not done so voluntarily:
IMPORTANT NOTICE
[Name of vegetable contractor] does not contribute to Wisconsin's Agricultural Producer Security Program, and has not filed security under the program. The program will therefore provide no compensation if we fail to pay you for vegetables. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).
ATCP 101.26 History
History: CR 02-113: cr.
Register April 2003 No. 568, eff. 5-1-03;
CR 04-030: am. (2) (a) (intro.) and (b) (intro.), cr. (2) (d) and (e)
Register September 2004 No. 585, eff. 10-1-04;
CR 05-068: r. and recr. (2)
Register April 2006 No. 604, eff. 5-1-06.
