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.
SB55-ASA1-AA1,924,2
1(b) A vegetable contractor is disqualified from the fund if the department
2denies, suspends, or revokes the vegetable contractor's license.
SB55-ASA1-AA1,924,63 (c) A vegetable contractor is disqualified from the fund, and required to pay
4cash on delivery under vegetable procurement contracts, if the department issues a
5written notice disqualifying the vegetable contractor for cause. Cause may include
6any of the following:
SB55-ASA1-AA1,924,77 1. Failure to pay fund assessments under s. 126.60 when due.
SB55-ASA1-AA1,924,88 2. Failure to file a financial statement under s. 126.58 when due.
SB55-ASA1-AA1,924,129 3. Failure to reimburse the department, within 60 days after the department
10issues a reimbursement demand under s. 126.73 (1), for the full amount that the
11department pays to claimants under s. 126.72 (1) because of that vegetable
12contractor's default.
SB55-ASA1-AA1,924,1613 4. Failure to reimburse a bond surety, within 60 days after the bond surety
14issues a reimbursement demand under s. 126.73 (2), for the full amount that the
15surety pays to the department under s. 126.72 (2) or (3) for the benefit of claimants
16affected by that vegetable contractor's default.
SB55-ASA1-AA1,924,19 17(3) Payments by disqualified vegetable contractor. (a) The department may
18not return, to a disqualified vegetable contractor, any fund assessments that the
19vegetable contractor paid as a contributing vegetable contractor.
SB55-ASA1-AA1,924,2420 (b) A disqualified vegetable contractor remains liable for any unpaid fund
21installment under s. 126.60 that became due while the vegetable contractor was a
22contributing vegetable contractor. A disqualified vegetable contractor is not liable
23for any fund installment that becomes due after the vegetable contractor is
24disqualified under sub. (2).
SB55-ASA1-AA1,925,4
1126.60 Contributing vegetable contractors; fund assessments. (1)
2General.
A contributing vegetable contractor shall pay an annual fund assessment
3for each license year. The assessment equals $20 or the sum of the following,
4whichever is greater, unless the department by rule specifies a different assessment:
SB55-ASA1-AA1,925,85 (a) The vegetable contractor's current ratio assessment. The current ratio
6assessment for a license year equals the vegetable contractor's current ratio
7assessment rate under sub. (2) multiplied by the amount reported under s. 126.56
8(9) (a) in the vegetable contractor's license application for that license year.
SB55-ASA1-AA1,925,129 (b) The vegetable contractor's debt to equity ratio assessment. The debt to
10equity ratio assessment for a license year equals the vegetable contractor's debt to
11equity ratio assessment rate under sub. (4) multiplied by the amount reported under
12s. 126.56 (9) (a) in the vegetable contractor's license application for that license year.
SB55-ASA1-AA1,925,1613 (c) The vegetable contractor's deferred contract assessment. The deferred
14contract assessment for a license year equals the amount, if any, reported under s.
15126.56 (9) (e) in the vegetable contractor's license application for that license year,
16multiplied by a deferred vegetable contract assessment rate of 0.0025.
SB55-ASA1-AA1,925,18 17(2) Current ratio assessment rate. A vegetable contractor's current ratio
18assessment rate is calculated, at the beginning of the license year, as follows:
SB55-ASA1-AA1,925,2319 (a) If the vegetable contractor has filed an annual financial statement under
20s. 126.58 and that financial statement shows a current ratio of at least 1.25 to 1.0,
21the vegetable contractor's current ratio assessment rate equals the greater of zero
22or the current ratio assessment factor in sub. (3) (a) multiplied by the following
23amount:
SB55-ASA1-AA1,925,2424 1. Subtract 4 from the current ratio.
SB55-ASA1-AA1,925,2525 2. Divide the amount determined under subd. 1. by 2.
SB55-ASA1-AA1,926,1
13. Multiply the amount determined under subd. 2. by negative one.
SB55-ASA1-AA1,926,22 4. Raise the amount determined under subd. 3. to the 3rd power.
SB55-ASA1-AA1,926,33 5. Subtract 0.65 from the current ratio.
SB55-ASA1-AA1,926,44 6. Divide 0.60 by the amount determined under subd. 5.
SB55-ASA1-AA1,926,55 7. Raise the amount determined under subd. 6. to the 5th power.
SB55-ASA1-AA1,926,76 8. Add the amount determined under subd. 4. to the amount determined under
7subd. 7.
SB55-ASA1-AA1,926,88 9. Add 0.25 to the amount determined under subd. 8.
SB55-ASA1-AA1,926,139 (b) If the vegetable contractor has filed an annual financial statement under
10s. 126.58 and that financial statement shows a current ratio of less than 1.25 to 1.0,
11but greater than 1.1 to 1.0, the vegetable contractor's current ratio assessment rate
12equals the current ratio assessment factor in sub. (3) (b) multiplied by the following
13amount:
SB55-ASA1-AA1,926,1414 1. Subtract 4 from the current ratio.
SB55-ASA1-AA1,926,1515 2. Divide the amount determined under subd. 1. by 2.
SB55-ASA1-AA1,926,1616 3. Multiply the amount determined under subd. 2. by negative one.
SB55-ASA1-AA1,926,1717 4. Raise the amount determined under subd. 3. to the 3rd power.
SB55-ASA1-AA1,926,1818 5. Subtract 0.65 from the current ratio.
SB55-ASA1-AA1,926,1919 6. Divide 0.60 by the amount determined under subd. 5.
SB55-ASA1-AA1,926,2020 7. Raise the amount determined under subd. 6. to the 5th power.
SB55-ASA1-AA1,926,2221 8. Add the amount determined under subd. 4. to the amount determined under
22subd. 7.
SB55-ASA1-AA1,926,2323 9. Add 0.25 to the amount determined under subd. 8.
SB55-ASA1-AA1,927,224 (c) If the vegetable contractor has filed an annual financial statement under
25s. 126.58 and that financial statement shows a current ratio of less than or equal to

11.1 to 1.0, the vegetable contractor's current ratio assessment rate equals the current
2ratio assessment factor in sub. (3) (b) multiplied by 7.512617.
SB55-ASA1-AA1,927,53 (d) If the vegetable contractor has not filed an annual financial statement
4under s. 126.58, the vegetable contractor's current ratio assessment rate equals the
5current ratio assessment factor in sub. (3) (b) multiplied by 3.84961.
SB55-ASA1-AA1,927,7 6(3) Current ratio assessment factor. (a) A vegetable contractor's current
7ratio assessment factor under sub. (2) (a) is 0.00048, except as follows:
SB55-ASA1-AA1,927,108 1. For the vegetable contractor's 4th and 5th consecutive full license years as
9a contributing vegetable contractor, the vegetable contractor's current ratio
10assessment factor is 0.00029.
SB55-ASA1-AA1,927,1311 2. For the vegetable contractor's 6th or higher consecutive full license year as
12a contributing vegetable contractor, the vegetable contractor's current ratio
13assessment factor is zero.
SB55-ASA1-AA1,927,1514 (b) A vegetable contractor's current ratio assessment factor under sub. (2) (b)
15to (d) is 0.00072, except as follows:
SB55-ASA1-AA1,927,1816 1. For the vegetable contractor's 4th and 5th consecutive full license years as
17a contributing vegetable contractor, the vegetable contractor's current ratio
18assessment factor is 0.00058.
SB55-ASA1-AA1,927,2119 2. For the vegetable contractor's 6th or higher consecutive full license year as
20a contributing vegetable contractor, the vegetable contractor's current ratio
21assessment factor is 0.00035.
SB55-ASA1-AA1,927,24 22(4) Debt to equity ratio assessment rate. A vegetable contractor's debt to
23equity ratio assessment rate for a license year is calculated, at the beginning of the
24license year, as follows:
SB55-ASA1-AA1,928,5
1(a) If the vegetable contractor has filed an annual financial statement under
2s. 126.58 and that financial statement shows positive equity and a debt to equity
3ratio of not more than 4.0 to 1.0, the vegetable contractor's debt to equity ratio
4assessment rate equals the greater of zero or the debt to equity ratio assessment
5factor in sub. (5) (a) multiplied by the following amount:
SB55-ASA1-AA1,928,66 1. Subtract 4 from the debt to equity ratio.
SB55-ASA1-AA1,928,77 2. Divide the amount determined under subd. 1. by 4.
SB55-ASA1-AA1,928,88 3. Raise the amount determined under subd. 2. to the 3rd power.
SB55-ASA1-AA1,928,99 4. Subtract 1.85 from the debt to equity ratio.
SB55-ASA1-AA1,928,1010 5. Divide the amount determined under subd. 4. by 2.5.
SB55-ASA1-AA1,928,1111 6. Raise the amount determined under subd. 5. to the 7th power.
SB55-ASA1-AA1,928,1312 7. Add the amount determined under subd. 3. to the amount determined under
13subd. 6.
SB55-ASA1-AA1,928,1414 8. Add one to the amount determined under subd. 7.
SB55-ASA1-AA1,928,1915 (b) If the vegetable contractor has filed an annual financial statement under
16s. 126.58 and that financial statement shows a debt to equity ratio of greater than
174.0 to 1.0 but less than 6.0 to 1.0, the vegetable contractor's debt to equity ratio
18assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b)
19multiplied by the following amount:
SB55-ASA1-AA1,928,2020 1. Subtract 4 from the debt to equity ratio.
SB55-ASA1-AA1,928,2121 2. Divide the amount determined under subd. 1. by 4.
SB55-ASA1-AA1,928,2222 3. Raise the amount determined under subd. 2. to the 3rd power.
SB55-ASA1-AA1,928,2323 4. Subtract 1.85 from the debt to equity ratio.
SB55-ASA1-AA1,928,2424 5. Divide the amount determined under subd. 4. by 2.5.
SB55-ASA1-AA1,928,2525 6. Raise the amount determined under subd. 5. to the 7th power.
SB55-ASA1-AA1,929,2
17. Add the amount determined under subd. 3. to the amount determined under
2subd. 6.
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