SB55-ASA1-AA1,913,11 11(14) "Vegetable contractor" means a person who does any of the following:
SB55-ASA1-AA1,913,1312 (a) Contracts with a vegetable producer or a producer agent to procure
13processing vegetables that a vegetable producer grows in this state.
SB55-ASA1-AA1,913,1514 (b) Contracts with a vegetable producer to market, as a producer agent,
15processing vegetables that the vegetable producer grows in this state.
SB55-ASA1-AA1,913,17 16(15) "Vegetable procurement contract" means an oral or written agreement
17under which a vegetable contractor does any of the following:
SB55-ASA1-AA1,913,1918 (a) Contracts with a vegetable producer or a producer agent to procure
19processing vegetables that a vegetable producer grows in this state.
SB55-ASA1-AA1,913,2120 (b) Contracts with a vegetable producer to market, as a producer agent,
21processing vegetables that the vegetable producer grows in this state.
SB55-ASA1-AA1,913,23 22(16) "Vegetable producer" means a person who grows processing vegetables in
23this state.
SB55-ASA1-AA1,914,3
1(17) "Unharvested acreage" means land on which vegetables are grown, under
2a vegetable procurement contract, that a vegetable contractor leaves unharvested for
3any reason. "Unharvested acreage" includes all of the following:
SB55-ASA1-AA1,914,54 (a) Land on which the vegetables are suitable for processing, but are not
5harvested.
SB55-ASA1-AA1,914,76 (b) Land on which the vegetables are abandoned as being unsuitable for
7processing.
SB55-ASA1-AA1,914,10 8126.56 Vegetable contractors; licensing. (1) License required. (a) Except
9as provided in sub. (2), no person may operate as a vegetable contractor without a
10current annual license from the department.
SB55-ASA1-AA1,914,1211 (b) A license under par. (a) expires on the January 31 following its issuance.
12No person may transfer or assign a license issued under par. (a).
SB55-ASA1-AA1,914,14 13(2) Exempt contractors. The following vegetable contractors are exempt from
14licensing under sub. (1):
SB55-ASA1-AA1,914,1715 (a) A vegetable contractor who procures vegetables primarily for unprocessed,
16fresh market use and is licensed under the federal Perishable Agricultural
17Commodities Act, 7 USC 499a to 499t.
SB55-ASA1-AA1,914,1918 (b) A restaurant or retail food establishment that procures processing
19vegetables solely for retail sale at the restaurant or retail food establishment.
SB55-ASA1-AA1,914,22 20(3) License application. A vegetable contractor shall apply for a license under
21sub. (1) in writing, on a form provided by the department. The applicant shall
22provide all of the following:
SB55-ASA1-AA1,914,2423 (a) The applicant's legal name and any trade name under which the applicant
24proposes to operate as a vegetable contractor.
SB55-ASA1-AA1,915,5
1(b) A statement of whether the applicant is an individual, corporation,
2partnership, cooperative, limited liability company, trust, or other legal entity. If the
3applicant is a corporation or cooperative, the application shall identify each officer
4of the corporation or cooperative. If the applicant is a partnership, the application
5shall identify each partner.
SB55-ASA1-AA1,915,76 (c) The mailing address of the applicant's principal business location and the
7name of a responsible individual who may be contacted at that address.
SB55-ASA1-AA1,915,108 (d) The street address of each business location from which the applicant
9operates as a vegetable contractor in this state and the name of a responsible
10individual who may be contacted at each location that is staffed.
SB55-ASA1-AA1,915,1111 (e) All license fees and surcharges required under sub. (4).
SB55-ASA1-AA1,915,1212 (f) The sworn and notarized statement required under sub. (9).
SB55-ASA1-AA1,915,1313 (g) A financial statement if required under s. 126.58 (1) and not yet filed.
SB55-ASA1-AA1,915,1414 (h) Other relevant information required by the department.
SB55-ASA1-AA1,915,17 15(4) License fees and surcharges. A vegetable contractor applying for a license
16under sub. (1) shall pay the following fees and surcharges, unless the department
17specifies a different fee or surcharge amount by rule:
SB55-ASA1-AA1,915,1818 (a) A nonrefundable license processing fee of $25.
SB55-ASA1-AA1,915,2019 (b) A fee of $25 plus 5.75 cents for each $100 in contract obligations reported
20under sub. (9) (a), less any credit provided under sub. (6).
SB55-ASA1-AA1,915,2521 (c) A license surcharge of $500 if the department determines that, within 365
22days before submitting the license application, the applicant operated as a vegetable
23contractor without a license in violation of sub. (1). The applicant shall also pay any
24license fees, license surcharges, and fund assessments that are still due for the
25license year in which the applicant violated sub. (1).
SB55-ASA1-AA1,916,3
1(d) A license surcharge of $100 if during the preceding 12 months the applicant
2failed to file an annual financial statement required under s. 126.58 (1) (b) by the
3applicable deadline.
SB55-ASA1-AA1,916,54 (e) A license surcharge of $100 if a renewal applicant fails to renew a license
5by the license expiration date of January 31.
SB55-ASA1-AA1,916,8 6(4m) Effect of payment of surcharge. Payment under sub. (3) (c) does not
7relieve the applicant of any other civil or criminal liability that results from the
8violation of sub. (1), but does not constitute evidence of any law violation.
SB55-ASA1-AA1,916,11 9(5) License for part of year; fees. A person who applies for an annual
10vegetable contractor license after the beginning of a license year shall pay the full
11annual fee amounts required under sub. (4).
SB55-ASA1-AA1,916,18 12(6) Fee credits. (a) If the balance in the fund contributed by vegetable
13contractors exceeds $1,000,000 on November 30 of any license year, the department
14shall credit 50% of the excess amount against fees charged under sub. (4) (b) to
15contributing vegetable contractors who file timely license renewal applications for
16the next license year. The department shall credit each contributing vegetable
17contractor on a prorated basis, in proportion to the total fees that the vegetable
18contractor has paid under sub. (4) (b) for the 4 preceding license years.
SB55-ASA1-AA1,916,2219 (b) The fee under sub. (4) (b) is reduced by one cent for each $100 in contract
20obligations reported under sub. (9) (a) if the department, under a contract with the
21applicant, grades all of the graded vegetables that the applicant procures from
22vegetable producers or producer agents.
SB55-ASA1-AA1,917,2 23(7) Fee statement. The department shall provide, with each license application
24form, a written statement of all license fees and surcharges required under sub. (4).

1The department shall specify any fee credits for which the applicant may qualify
2under sub. (6).
SB55-ASA1-AA1,917,7 3(8) No license without full payment. The department may not issue a license
4under sub. (1) until the applicant pays all license fees and surcharges identified in
5the department's statement under sub. (7). The department shall refund a fee or
6surcharge paid under protest if upon review the department determines that the fee
7or surcharge is not applicable.
SB55-ASA1-AA1,917,10 8(9) Sworn and notarized statement. As part of a license application under sub.
9(3), an applicant shall provide a sworn and notarized statement, signed by the
10applicant or an officer of the applicant, that reports all of the following:
SB55-ASA1-AA1,917,1411 (a) The total amount of contract obligations that the applicant incurred during
12the applicant's last completed fiscal year. If the applicant has not yet operated as a
13vegetable contractor, the applicant shall estimate the amount of contract obligations
14that the applicant will incur during the applicant's first complete fiscal year.
SB55-ASA1-AA1,917,1715 (b) The largest amount of unpaid contract obligations that the vegetable
16contractor had at any time during the vegetable contractor's last completed fiscal
17year.
SB55-ASA1-AA1,917,1918 (c) The amount of unpaid contract obligations that the vegetable contractor has
19at the time of application.
SB55-ASA1-AA1,917,2120 (d) The amount of unpaid contract obligations under par. (c) that are due for
21payment before the license year for which the applicant is applying.
SB55-ASA1-AA1,917,2322 (e) The amount of unpaid obligations under par. (c) that the contractor has
23under deferred payment contracts.
SB55-ASA1-AA1,918,224 (f) Whether the applicant and the applicant's affiliates and subsidiaries will
25collectively grow more than 10% of the total acreage of any vegetable species grown

1or procured by the applicant during the license year for which the applicant is
2applying.
SB55-ASA1-AA1,918,43 (g) Whether the applicant will pay cash on delivery under all vegetable
4procurement contracts during the license year for which the applicant is applying.
SB55-ASA1-AA1,918,95 (h) Whether the applicant is a producer-owned cooperative or organization
6that procures vegetables solely from its producer owners on the basis of a cooperative
7marketing method under which the producer-owned cooperative or organization
8pays its producer owners a prorated share of sales proceeds for the marketing year
9after a final accounting and the deduction of marketing expenses.
SB55-ASA1-AA1,918,14 10(10) Action granting or denying application. (a) The department shall grant
11or deny a license application under sub. (3) within 30 days after the department
12receives a complete application. If the department denies a license application, the
13department shall give the applicant a written notice stating the reasons for the
14denial.
SB55-ASA1-AA1,918,1715 (b) A license becomes invalid after February 5 of the license year for which it
16is issued unless the license holder has by February 5 paid all producer obligations
17that were due and payable during the preceding license year.
SB55-ASA1-AA1,918,20 18(11) License displayed. A vegetable contractor licensed under sub. (1) shall
19prominently display a copy of that license at each business location from which the
20vegetable contractor operates in this state.
SB55-ASA1-AA1,918,24 21(12) Notice required. (a) A vegetable contractor who files security under s.
22126.61 shall immediately notify the department if, at any time, the vegetable
23contractor's unpaid contract obligations exceed the amount last reported under sub.
24(9) (b).
SB55-ASA1-AA1,919,3
1(b) A vegetable contractor shall immediately notify the department if the
2amount of unpaid obligations under deferred payment contracts exceeds the amount
3last reported under sub. (9) (e).
SB55-ASA1-AA1,919,10 4126.57 Vegetable contractors; insurance. (1) Fire and extended coverage
5insurance.
(a) Except as provided in par. (b), a vegetable contractor who is required
6to be licensed under s. 126.56 (1) shall maintain fire and extended coverage
7insurance, issued by an insurance company authorized to do business in this state,
8that covers all vegetables in the custody of the vegetable contractor, whether owned
9by the vegetable contractor or held for others, at the full local market value of the
10vegetables.
SB55-ASA1-AA1,919,1211 (b) Paragraph (a) does not apply to a vegetable contractor if any of the following
12applies:
SB55-ASA1-AA1,919,1413 1. The vegetable contractor pays cash on delivery under all vegetable
14procurement contracts.
SB55-ASA1-AA1,919,1615 2. The vegetable contractor is a producer-owned cooperative or organization
16that procures processing vegetables only from its producer owners.
SB55-ASA1-AA1,919,19 17(2) Insurance cancellation; replacement. Whenever an insurance policy
18under sub. (1) is canceled, the vegetable contractor shall replace the policy so that
19there is no lapse in coverage.
SB55-ASA1-AA1,919,22 20(3) Insurance coverage; misrepresentation. No vegetable contractor may
21misrepresent any of the following to the department or to any vegetable producer or
22producer agent:
SB55-ASA1-AA1,919,2323 (a) That the vegetable contractor is insured.
SB55-ASA1-AA1,919,2524 (b) The nature, coverage, or material terms of the vegetable contractor's
25insurance policy.
SB55-ASA1-AA1,920,6
1126.58 Vegetable contractors; financial statements. (1) Required
2annual financial statement.
(a) Except as provided in par. (c), a vegetable
3contractor shall file an annual financial statement with the department, before the
4department first licenses the vegetable contractor under s. 126.56 (1), if the
5vegetable contractor reports more than $500,000 in contract obligations under s.
6126.56 (9) (a).
SB55-ASA1-AA1,920,157 (b) Except as provided in par. (c), a vegetable contractor licensed under s.
8126.56 (1) shall file an annual financial statement with the department during each
9license year if the vegetable contractor's license application for that year reports
10more than $500,000 in contract obligations under s. 126.56 (9) (a). The vegetable
11contractor shall file the annual financial statement by the 15th day of the 4th month
12following the close of the vegetable contractor's fiscal year, except that the
13department may extend the filing deadline for up to 30 days if the vegetable
14contractor, or the accountant reviewing or auditing the financial statement, files a
15written extension request at least 10 days before the filing deadline.
SB55-ASA1-AA1,920,1716 (c) A vegetable contractor is not required to file a financial statement under par.
17(a) or (b) if any of the following applies:
SB55-ASA1-AA1,920,1918 1. The vegetable contractor pays cash on delivery under all vegetable
19procurement contracts.
SB55-ASA1-AA1,920,2120 2. The vegetable contractor is a producer-owned cooperative that procures
21processing vegetables only from its producer owners.
SB55-ASA1-AA1,920,24 22(2) Voluntary financial statement. A contributing vegetable contractor who
23is not required to file a financial statement under sub. (1) may file an annual
24financial statement with the department for any of the following reasons:
SB55-ASA1-AA1,920,2525 (a) To qualify for a lower fund assessment under s. 126.60.
SB55-ASA1-AA1,921,1
1(b) To avoid filing security under s. 126.61 (1) (b).
SB55-ASA1-AA1,921,5 2(3) Reviewed or audited financial statement. (a) A vegetable contractor filing
3an annual financial statement under sub. (1) or (2) shall file an audited financial
4statement if the vegetable contractor's latest annual license application reported
5more than $4,000,000 in annual contract obligations under s. 126.56 (9) (a).
SB55-ASA1-AA1,921,86 (b) If par. (a) does not apply, a vegetable contractor filing an annual financial
7statement under sub. (1) or (2) shall file either a reviewed financial statement or an
8audited financial statement.
SB55-ASA1-AA1,921,12 9(4) Accounting period. A vegetable contractor filing an annual financial
10statement under sub. (1) or (2) shall file a financial statement that covers the
11vegetable contractor's last completed fiscal year unless the vegetable contractor has
12been in business for less than one year.
SB55-ASA1-AA1,921,18 13(4m) Interim financial statement. The department may, at any time, require
14a vegetable contractor licensed under s. 126.56 (1) to file an interim financial
15statement with the department. The vegetable contractor shall provide, with the
16interim financial statement, the vegetable contractor's sworn and notarized
17statement that the financial statement is correct. An interim financial statement
18need not be a reviewed or audited financial statement.
SB55-ASA1-AA1,921,22 19(5) Generally accepted accounting principles. (a) Except as provided in par.
20(b), a vegetable contractor filing a financial statement under this section shall file a
21financial statement that is prepared according to generally accepted accounting
22principles.
SB55-ASA1-AA1,921,2523 (b) If a vegetable contractor is a sole proprietor and the vegetable contractor's
24financial statement is not audited, the vegetable contractor shall file a financial
25statement that is prepared on a historical cost basis.
SB55-ASA1-AA1,922,7
1(6) Financial statement contents. (a) Except as provided in par. (b), a
2vegetable contractor filing a financial statement under this section shall file a
3financial statement that consists of a balance sheet, income statement, equity
4statement, statement of cash flows, notes to those statements, and any other
5information required by the department. If the vegetable contractor is a sole
6proprietor, the vegetable contractor shall file his or her business and personal
7financial statements.
SB55-ASA1-AA1,922,108 (b) If a vegetable contractor has been in business for less than one year, the
9vegetable contractor may file an annual financial statement under sub. (1) or (2)
10consisting of a balance sheet and notes.
SB55-ASA1-AA1,922,1311 (c) A vegetable contractor filing a financial statement under this section shall
12include in the financial statement, or in an attachment to the financial statement,
13calculations of all of the following:
SB55-ASA1-AA1,922,1514 1. The vegetable contractor's current ratio, excluding any assets required to be
15excluded under sub. (7).
SB55-ASA1-AA1,922,1716 2. The vegetable contractor's debt to equity ratio, excluding any assets
17required to be excluded under sub. (7).
SB55-ASA1-AA1,922,20 18(7) Assets excluded. A vegetable contractor may not include any of the
19following assets in the calculations under sub. (6) (c), unless the department
20specifically approves their inclusion:
SB55-ASA1-AA1,922,2421 (a) A nontrade note or account receivable from an officer, director, employee,
22partner, or stockholder, or from a member of the family of any of those individuals,
23unless the note or account receivable is secured by a first priority security interest
24in real or personal property.
SB55-ASA1-AA1,923,2
1(b) A note or account receivable from a parent organization, a subsidiary, or an
2affiliate other than an employee.
SB55-ASA1-AA1,923,53 (c) A note or account that has been receivable for more than one year, unless
4the vegetable contractor has established an equal offsetting reserve for uncollectible
5notes and accounts receivable.
SB55-ASA1-AA1,923,8 6(9) Entity covered. A person filing a financial statement under this section
7may not file, in lieu of that person's financial statement, the financial statement of
8the person's parent organization, subsidiary, predecessor, or successor.
SB55-ASA1-AA1,923,11 9(10) Department review. The department may analyze a financial statement
10filed under this section and may reject a financial statement that fails to comply with
11this section.
SB55-ASA1-AA1,923,14 12126.59 Contributing vegetable contractors; disqualification. (1)
13Contribution required. A vegetable contractor licensed under s. 126.56 (1) shall pay
14fund assessments under s. 126.60 unless one of the following applies:
SB55-ASA1-AA1,923,1515 (a) The vegetable contractor is disqualified under sub. (2).
SB55-ASA1-AA1,923,1716 (b) The vegetable contractor pays cash on delivery under all vegetable
17procurement contracts.
SB55-ASA1-AA1,923,1918 (c) The vegetable contractor is a producer-owned cooperative that procures
19processing vegetables only from its producer owners.
SB55-ASA1-AA1,923,21 20(1m) Voluntary contribution. A vegetable contractor who is exempt under
21sub. (1) (b) or (c) may volunteer to pay fund assessments under s. 126.60.
SB55-ASA1-AA1,923,24 22(2) Disqualified contractor. (a) A vegetable contractor who is required to file
23security under s. 126.61 (1) (a) is disqualified from the fund until the department
24determines that one of the conditions in s. 126.61 (7) (a) 1. or 2. is satisfied.
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