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(a) The applicant's legal name and any trade name under which the applicant
15proposes to operate as a milk contractor. If the milk contractor is a dairy plant
16operator licensed under s. 97.20, the milk contractor shall use the same legal name
17in both license applications.
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(b) A statement of whether the applicant is an individual, corporation,
19partnership, cooperative, limited liability company, trust, or other legal entity. If the
20applicant is a corporation or cooperative, the applicant shall identify each officer of
21the corporation or cooperative. If the applicant is a partnership, the applicant shall
22identify each partner.
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(c) The mailing address of the applicant's primary business location and the
24name of a responsible individual who may be contacted at that location.
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1(d) The street address of each business location from which the applicant will
2operate under the license and the name of a responsible person who may be contacted
3at each location that is staffed.
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(e) All license fees and surcharges required under sub. (3).
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(f) The sworn and notarized statement required under sub. (6).
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(g) A financial statement if required under s. 126.44 (1) and not yet filed.
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(h) Other relevant information required by the department.
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8(3) A
nnual license fees and surcharges. A milk contractor applying for a
9license under sub. (1) shall include the following fees and surcharges with the license
10application, unless the department specifies a different fee or surcharge amount by
11rule:
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(a) A nonrefundable license processing fee of $25, regardless of whether
13application is made after the beginning of a license year.
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(b) A license surcharge of $500 if the department determines that, within 365
15days before submitting the license application, the applicant operated without a
16license in violation of sub. (1). The applicant shall also pay any license fees, license
17surcharges, and fund assessments that are still due for any license year in which the
18applicant violated sub. (1).
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(c) A license surcharge of $100 if during the preceding 12 months the applicant
20failed to file an annual financial statement required under s. 126.44 (1) (b) by the
21applicable deadline.
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(d) A license surcharge of $100 if a renewal applicant fails to renew a license
23by the license expiration date of April 30.
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1(3m) Effect of payment of surcharge. Payment under sub. (3) (b) does not
2relieve the applicant of any other civil or criminal liability that results from the
3violation of sub. (1), but does not constitute evidence of any law violation.
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4(4) F
ee statement. The department shall provide, with each license application
5form, a written statement of all license fees and surcharges required under sub. (3).
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6(5) N
o license without full payment. The department may not issue a license
7under sub. (1) until the applicant pays all license fees and surcharges identified in
8the department's statement under sub. (4). The department shall refund a fee or
9surcharge paid under protest if upon review the department determines that the fee
10or surcharge is not applicable.
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11(6) Sworn and notarized statement. As part of a license application under sub.
12(2), an applicant shall provide a sworn and notarized statement, signed by the
13applicant or an authorized officer of the applicant, that reports all of the following
14information:
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(a) The total milk payroll obligations that the applicant incurred during the
16applicant's last completed fiscal year. If the applicant has not yet operated as a milk
17contractor, the applicant shall estimate the total milk payroll obligations that the
18applicant will incur during the applicant's first complete fiscal year.
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(b) The largest amount of unpaid milk payroll obligations that the milk
20contractor had at any time during the milk contractor's last completed fiscal year.
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(c) The identity of any producer agents from whom the milk contractor procures
22producer milk.
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(d) Other relevant information required by the department.
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24(7) Action granting or denying application. The department shall grant or
25deny a license application under sub. (2) within 30 days after the department
1receives a complete application. If the department denies a license application, the
2department shall give the applicant written notice stating the reasons for the denial.
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3(8) License displayed. A milk contractor licensed under sub. (1) shall
4prominently display a true copy of that license at each business location from which
5the milk contractor operates in this state.
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6(9) Notification required. A milk contractor who files security under s. 126.47
7shall immediately notify the department if, at any time, the milk contractor's unpaid
8milk payroll obligations exceed the amount last reported under sub. (6) (b).
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9126.42 Milk contractors; monthly license fee. (1) M
onthly license fee
10payment. Except as provided under sub. (5) or (6), a milk contractor licensed under
11s. 126.41 (1) shall pay to the department, by the 25th day of each month, a monthly
12license fee of 0.15 cent for each 100 pounds of producer milk that the milk contractor
13procured in this state during the preceding month. The milk contractor shall submit,
14with the fee payment, a report stating the number of pounds of producer milk that
15the milk contractor procured in this state during the preceding month.
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16(2) L
ate payment surcharge. If a milk contractor fails to pay a monthly fee
17under sub. (1) when due, the milk contractor shall pay, in addition to that monthly
18fee, a surcharge equal to 20% of the monthly fee. The milk contractor shall pay the
19surcharge by the 25th day of the following month.
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20(3) F
ee credits. If the balance in the fund contributed by milk contractors
21exceeds $4,000,000 on February 28 of any license year, the department shall credit
2250% of the excess amount against fees charged under sub. (1) to contributing milk
23contractors who file timely renewal applications for the next license year. The
24department shall credit each contributing milk contractor on a prorated basis, in
25proportion to the total fees that the milk contractor has paid under sub. (1) for the
14 preceding license years. Each month that a contributing contractor who qualifies
2for a credit under this subsection pays fees under sub. (1), the department shall credit
3to the contributing milk contractor one-twelfth of the total annual credit determined
4under this subsection.
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5(4) F
ee statement. Whenever the department issues an annual license to a
6milk contractor under s. 126.41 (1), the department shall give the milk contractor
7notice of the monthly fees required under this section. The department shall specify
8all of the following:
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(a) The method for computing the monthly fee.
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(b) The date by which the milk contractor must pay the fee each month.
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(c) The late payment surcharge that may apply under sub. (2).
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(d) The fee credit, if any, that applies under sub. (3).
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13(5) P
roducer agents; exemption. A producer agent is not required to pay the
14monthly fee under sub. (1) for producer milk that the producer agent markets to a
15milk contractor who is licensed under s. 126.41 (1) and who pays the monthly fee on
16the same milk.
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17(6) F
ee changes. The department may modify the license fees under sub. (1)
18by rule, as provided under s. 126.81 (2).
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19126.43 Milk contractors; insurance. (1) F
ire and extended coverage
20insurance. A milk contractor licensed under s. 126.41 (1) shall maintain fire and
21extended coverage insurance that covers, at their full value, all milk and milk
22products in the possession, custody, or control of the milk contractor. If the milk
23contractor is required to be licensed under s. 126.41 (1) (a), the milk contractor shall
24maintain insurance issued by an insurance company authorized to do business in
25this state.
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1(2) I
nsurance cancellation; replacement. Whenever an insurance policy
2under sub. (1) is canceled, the milk contractor shall replace the policy so that there
3is no lapse in coverage.
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4(3) I
nsurance coverage; misrepresentation. No milk contractor may
5misrepresent any of the following to the department or to any milk producer or
6producer agent:
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(a) That the milk contractor is insured.
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(b) The nature, coverage, or material terms of the milk contractor's insurance
9policy.
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10126.44 Milk contractors; financial statements. (1) R
equired annual
11financial statement. (a) A milk contractor shall file an annual financial statement
12with the department before the department first licenses the milk contractor under
13s. 126.41 (1), unless the milk contractor reports no more than $1,500,000 in annual
14milk payroll obligations under s. 126.41 (6) (a).
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(b) Except as provided in par. (c), a milk contractor licensed under s. 126.41 (1)
16shall file an annual financial statement with the department during each license
17year. The milk contractor shall file the annual financial statement by the 15th day
18of the 4th month following the close of the milk contractor's fiscal year. The
19department may extend the filing deadline for up to 30 days if the milk contractor,
20or the accountant preparing the financial statement, files a written extension
21request at least 10 days before the filing deadline.
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(c) Paragraph (b) does not apply to any of the following:
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1. A contributing milk contractor who reports no more than $1,500,000 in
24annual milk payroll obligations under s. 126.41 (6) (a).
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12. A contributing milk contractor who procures producer milk in this state
2solely as a producer agent.
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3(2) V
oluntary annual financial statement. A milk contractor licensed under
4s. 126.41 (1) who is not required to file a financial statement under sub. (1) may file
5an annual financial statement with the department for any of the following reasons:
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(a) To avoid being required to contribute to the fund under s. 126.45 (1) (a).
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(b) To qualify for a lower fund assessment under s. 126.46.
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8(3) Q
uarterly financial statements. A milk contractor licensed under s.
9126.41 (1) who is not a contributing milk contractor shall file quarterly financial
10statements with the department for the first 3 quarters in each of the milk
11contractor's fiscal years. The milk contractor shall file each quarterly financial
12statement no later than 60 days after the end of the fiscal quarter to which the
13financial statement pertains. With each quarterly financial statement, the milk
14contractor shall include the milk contractor's sworn and notarized statement that
15the financial statement is correct.
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16(5) R
eviewed or audited financial statement. (a) A milk contractor filing an
17annual financial statement under sub. (1) or (2) shall file an audited financial
18statement if the milk contractor reports more than $6,000,000 in annual milk payroll
19obligations under s. 126.41 (6) (a).
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(b) If par. (a) does not apply, a milk contractor filing an annual financial
21statement under sub. (1) or (2) shall file either a reviewed financial statement or an
22audited financial statement.
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23(6) A
ccounting period. A milk contractor filing an annual financial statement
24under sub. (1) or (2) shall file a financial statement that covers the milk contractor's
1last completed fiscal year unless the milk contractor has been in business for less
2than one year.
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3(6m) I
nterim financial statement. The department may, at any time, require
4a milk contractor licensed under s. 126.41 (1) to file an interim financial statement
5with the department. With the interim financial statement, the milk contractor shall
6provide the milk contractor's sworn and notarized statement that the financial
7statement is correct. An interim financial statement need not be a reviewed financial
8statement or an audited financial statement.
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9(7) G
enerally accepted accounting principles. (a) Except as provided in par.
10(b), a milk contractor filing an annual financial statement under this section shall
11file a financial statement that is prepared according to generally accepted accounting
12principles.
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(b) If a milk contractor is a sole proprietor and the milk contractor's financial
14statement is not audited, the milk contractor shall file a financial statement that is
15prepared on a historical cost basis.
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16(8) F
inancial statement contents. (a) Except as provided in par. (b), a milk
17contractor filing a financial statement under this section shall file a financial
18statement that consists of a balance sheet, income statement, equity statement,
19statement of cash flows, notes to those statements, and any other information
20required by the department. If the milk contractor is a sole proprietor, the milk
21contractor shall file his or her business and personal financial statements.
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(b) If a milk contractor has been in business for less than one year, the milk
23contractor may file an annual financial statement under sub. (1) or (2) consisting of
24a balance sheet and notes. A milk contractor may file a quarterly financial statement
25under sub. (3) consisting of a balance sheet and income statement.
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1(c) A milk contractor filing a financial statement under this section shall
2include in the financial statement, or in an attachment to the financial statement,
3calculations of all of the following:
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1. The milk contractor's current ratio, excluding any assets required to be
5excluded under sub. (9).
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2. The milk contractor's debt to equity ratio, excluding any assets required to
7be excluded under sub. (9).
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8(9) A
ssets excluded. A milk contractor may not include any of the following
9assets in the calculations under sub. (8) (c), unless the department specifically
10approves their inclusion:
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(a) A nontrade note or account receivable from an officer, director, employee,
12partner, or stockholder, or from a member of the family of any of those individuals,
13unless the note or account receivable is secured by a first priority security interest
14in real or personal property.
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(b) A note or account receivable from a parent organization, a subsidiary, or an
16affiliate other than an employee.
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(c) A note or account that has been receivable for more than one year, unless
18the milk contractor has established an equal offsetting reserve for uncollectible notes
19and accounts receivable.
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20(10) E
ntity covered. A person filing a financial statement under this section
21may not file, in lieu of that person's financial statement, the financial statement of
22the person's parent organization, subsidiary, predecessor, or successor.
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23(11) D
epartment review. The department may analyze a financial statement
24submitted under this section and may reject a financial statement that fails to
25comply with this section.
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1126.45 Contributing milk contractors; disqualification. (1) R
equired
2contributors. (a) Except as provided in sub. (3), a licensed milk contractor shall pay
3fund assessments under s. 126.46 if the milk contractor does not file annual and
4quarterly financial statements under s. 126.44.
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(b) Except as provided in sub. (3), a licensed milk contractor shall pay fund
6assessments under s. 126.46 if the milk contractor files an annual, quarterly, or
7interim financial statement under s. 126.44 that shows a current ratio of less than
81.25 to 1.0, a debt to equity ratio of more than 2.0 to 1.0, or negative equity. The milk
9contractor shall continue to pay fund assessments until the milk contractor files 2
10consecutive annual financial statements under s. 126.44 that show a current ratio
11of at least 1.25 to 1.0, positive equity, and a debt to equity ratio of not more than 2.0
12to 1.0.
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13(2) V
oluntary contributors. Except as provided in sub. (3), a licensed milk
14contractor who is not required to pay fund assessments under s. 126.46 may elect to
15do so.
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16(3) D
isqualified contractors. (a) A milk contractor who is required to file
17security under s. 126.47 (1) is disqualified from the fund until the department
18releases that security under s. 126.47 (7) (a). This paragraph does not apply, during
19the period beginning on May 1, 2002, and ending on April 30, 2007, to a qualified
20producer agent who files security under s. 126.47 (3) (c).
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(b) A milk contractor is disqualified from the fund if the department denies,
22suspends, or revokes the milk contractor's license.
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(c) The department may, by written notice, disqualify a milk contractor for any
24of the following reasons:
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1. Failure to pay fund assessments under s. 126.46 when due.
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12. Failure to file a financial statement under s. 126.44 when due.
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3. Failure to reimburse the department, within 60 days after the department
3issues a reimbursement demand under s. 126.73 (1), for the full amount that the
4department pays to claimants under s. 126.72 (1) because of that milk contractor's
5default.
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4. Failure to reimburse a bond surety, within 60 days after the bond surety
7issues a reimbursement demand under s. 126.73 (2), for the full amount that the
8surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants
9affected by that milk contractor's default.
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10(4) E
ffect of disqualification. (a) A milk contractor disqualified under sub.
11(3) (c) may not engage in any activities for which a license is required under s. 126.41
12(1) (a) if the milk contractor files an annual, quarterly, or interim financial statement
13under s. 126.44 that shows a current ratio of less than 1.25 to 1.0, a debt to equity
14ratio of more than 2.0 to 1.0, or negative equity.
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(b) The department may not return, to a disqualified milk contractor, any fund
16assessments that the milk contractor paid as a contributing milk contractor.
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(c) A disqualified milk contractor remains liable for any unpaid fund
18installment under s. 126.46 that became due while the milk contractor was a
19contributing milk contractor. A disqualified milk contractor is not liable for any fund
20installment that becomes due after the milk contractor is disqualified under sub. (3).
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21126.46 Contributing milk contractors; fund assessments. (1) General. 22A contributing milk contractor shall pay an annual fund assessment for each license
23year. The assessment equals $20 or the sum of the following, whichever is greater,
24unless the department by rule specifies a different assessment:
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1(a) The milk contractor's current ratio assessment. The current ratio
2assessment for a license year equals the milk contractor's current ratio assessment
3rate under sub. (2) multiplied by the annual milk payroll obligations reported under
4s. 126.41 (6) (a) in the milk contractor's license application for that license year.
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(b) The milk contractor's debt to equity ratio assessment. The debt to equity
6ratio assessment for a license year equals the milk contractor's debt to equity ratio
7assessment rate under sub. (4) multiplied by the annual milk payroll obligations
8reported under s. 126.41 (6) (a) in the milk contractor's license application for that
9license year.
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10(2) C
urrent ratio assessment rate. A milk contractor's current ratio
11assessment rate is calculated, at the beginning of the license year, as follows:
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(a) If the milk contractor has filed an annual financial statement under s.
13126.44 and that financial statement shows a current ratio of at least 1.25 to 1.0, the
14milk contractor's current ratio assessment rate equals the greater of zero or the
15current ratio assessment factor in sub. (3) (a) multiplied by the following amount:
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1. Subtract 3 from the current ratio.
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2. Divide the amount determined under subd. 1. by 6.
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3. Multiply the amount determined under subd. 2. by negative one.
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4. Raise the amount determined under subd. 3. to the 3rd power.
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5. Divide 0.55 by the current ratio.
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6. Raise the amount determined under subd. 5. to the 7th power.