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.
SB55-ASA1-AA1,929,33 8. Add one to the amount determined under subd. 7.
SB55-ASA1-AA1,929,84 (c) If the vegetable contractor has filed an annual financial statement under
5s. 126.58 and that financial statement shows negative equity or a debt to equity ratio
6of at least 6.0 to 1.0, the vegetable contractor's debt to equity ratio assessment rate
7equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by
835.859145.
SB55-ASA1-AA1,929,119 (d) If the vegetable contractor has not filed an annual financial statement
10under s. 126.58, the vegetable contractor's debt to equity ratio assessment rate
11equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 1.34793.
SB55-ASA1-AA1,929,13 12(5) Debt to equity ratio assessment factor. (a) A vegetable contractor's debt
13to equity ratio assessment factor under sub. (4) (a) is 0.000135, except as follows:
SB55-ASA1-AA1,929,1614 1. For the vegetable contractor's 4th and 5th consecutive full license years as
15a contributing vegetable contractor, the vegetable contractor's debt to equity ratio
16assessment factor is 0.00008.
SB55-ASA1-AA1,929,1917 2. For the vegetable contractor's 6th or higher consecutive full license year as
18a contributing vegetable contractor, the vegetable contractor's debt to equity ratio
19assessment factor is zero.
SB55-ASA1-AA1,929,2120 (b) A vegetable contractor's debt to equity ratio assessment factor under sub.
21(4) (b) to (d) is 0.000203, except as follows:
SB55-ASA1-AA1,929,2422 1. For the vegetable contractor's 4th and 5th consecutive full license years as
23a contributing vegetable contractor, the vegetable contractor's debt to equity ratio
24assessment factor is 0.00016.
SB55-ASA1-AA1,930,3
12. For the vegetable contractor's 6th or higher consecutive full license year as
2a contributing vegetable contractor, the vegetable contractor's debt to equity ratio
3assessment factor is 0.0001.
SB55-ASA1-AA1,930,6 4(6) Quarterly installments. (a) A contributing vegetable contractor shall pay
5the vegetable contractor's annual fund assessment in equal quarterly installments
6that are due as follows:
SB55-ASA1-AA1,930,77 1. The first installment is due on March 1 of the license year.
SB55-ASA1-AA1,930,88 2. The 2nd installment is due on June 1 of the license year.
SB55-ASA1-AA1,930,99 3. The 3rd installment is due on September 1 of the license year.
SB55-ASA1-AA1,930,1010 4. The 4th installment is due on December 1 of the license year.
SB55-ASA1-AA1,930,1211 (b) A contributing vegetable contractor may prepay any of the quarterly
12installments under par. (a).
SB55-ASA1-AA1,930,1713 (c) A contributing vegetable contractor who applies for an annual license after
14the beginning of a license year shall pay the full annual fund assessment required
15under this section. The vegetable contractor shall pay, with the first quarterly
16installment that becomes due after the day on which the department issues the
17license, all of that year's quarterly installments that were due before that day.
SB55-ASA1-AA1,930,2118 (d) A contributing vegetable contractor who fails to pay the full amount of any
19quarterly installment when due shall pay, in addition to that installment, a late
20payment penalty of $50 or 10% of the overdue installment amount, whichever is
21greater.
SB55-ASA1-AA1,930,24 22(7) Notice of annual assessment and quarterly installments. When the
23department issues an annual license to a contributing vegetable contractor, the
24department shall notify the vegetable contractor of all of the following:
SB55-ASA1-AA1,931,2
1(a) The amount of the vegetable contractor's annual fund assessment under
2this section.
SB55-ASA1-AA1,931,43 (b) The amount of each required quarterly installment under sub. (6) and the
4date by which the vegetable contractor must pay each installment.
SB55-ASA1-AA1,931,65 (c) The penalty that applies under sub. (6) (d) if the vegetable contractor fails
6to pay any quarterly installment when due.
SB55-ASA1-AA1,931,11 7126.61 Vegetable contractors; security. (1) Security required. (a) Except
8as provided in par. (c), a vegetable contractor shall file security with the department,
9and maintain that security until the department releases it under sub. (7), if all of
10the following apply when the department first licenses the vegetable contractor
11under s. 126.56 (1):
SB55-ASA1-AA1,931,1312 1. The vegetable contractor reports more than $1,000,000 in annual contract
13obligations under s. 126.56 (9) (a).
SB55-ASA1-AA1,931,1514 2. The vegetable contractor files a financial statement under s. 126.58 (1) and
15that financial statement shows negative equity.
SB55-ASA1-AA1,931,2216 (b) Except as provided in par. (c), a vegetable contractor shall file security with
17the department to cover the full amount of the unpaid deferred contract obligations
18last reported under s. 126.56 (9) (e) or (12) (b), and maintain that security until it is
19released under sub. (7), unless the vegetable contractor files an annual financial
20statement under s. 126.58 and that financial statement shows positive equity, a
21current ratio of at least 1.25 to 1.0, and a debt to equity ratio of not more than 4.0 to
221.0.
SB55-ASA1-AA1,931,2423 (c) A vegetable contractor is not required to file security under par. (a) or (b) if
24any of the following applies:
SB55-ASA1-AA1,932,2
11. The vegetable contractor pays cash on delivery under all vegetable
2procurement contracts.
SB55-ASA1-AA1,932,43 2. The vegetable contractor is a producer-owned cooperative that procures
4processing vegetables only from its producer members.
SB55-ASA1-AA1,932,7 5(2) Security continued. A vegetable contractor who filed security under s.
6100.03, 1999 stats., before February 1, 2002, shall maintain that security until the
7department releases it under sub. (7).
SB55-ASA1-AA1,932,10 8(3) Amount of security. A vegetable contractor who is required to file or
9maintain security under this section shall, at all times, maintain security that is at
10least equal to the sum of the following:
SB55-ASA1-AA1,932,1311 (a) Seventy-five percent of the amount last reported under s. 126.56 (9) (b) or
12(12) (a), except that this amount is not required of a contributing vegetable contractor
13after May 1, 2002.
SB55-ASA1-AA1,932,1414 (b) The amount required under sub. (1) (b), if any.
SB55-ASA1-AA1,932,17 15(4) Form of security. The department shall review, and determine whether
16to approve, security filed under this section. The department may approve only the
17following types of security:
SB55-ASA1-AA1,932,1818 (a) Currency.
SB55-ASA1-AA1,932,1919 (b) A commercial surety bond if all of the following apply:
SB55-ASA1-AA1,932,2120 1. The surety bond is made payable to the department for the benefit of
21vegetable producers and producer agents.
SB55-ASA1-AA1,932,2322 2. The surety bond is issued by a person authorized to operate a surety business
23in this state.
SB55-ASA1-AA1,933,3
13. The surety bond is issued as a continuous term bond that may be canceled
2only with the department's written agreement, or upon 90 days' prior written notice
3served on the department in person or by certified mail.
SB55-ASA1-AA1,933,54 4. The surety bond is issued in a form, and subject to any terms and conditions,
5that the department considers appropriate.
SB55-ASA1-AA1,933,76 (c) A certificate of deposit or money market certificate, if all of the following
7apply:
SB55-ASA1-AA1,933,98 1. The certificate is issued or endorsed to the department for the benefit of
9vegetable producers and producer agents.
SB55-ASA1-AA1,933,1110 2. The certificate may not be canceled or redeemed without the department's
11written permission.
SB55-ASA1-AA1,933,1312 3. No person may transfer or withdraw funds represented by the certificate
13without the department's written permission.
SB55-ASA1-AA1,933,1414 4. The certificate renews automatically without any action by the department.
SB55-ASA1-AA1,933,1615 5. The certificate is issued in a form, and subject to any terms and conditions,
16that the department considers appropriate.
SB55-ASA1-AA1,933,1717 (d) An irrevocable bank letter of credit if all of the following apply:
SB55-ASA1-AA1,933,1918 1. The letter of credit is payable to the department for the benefit of vegetable
19producers and producer agents.
SB55-ASA1-AA1,933,2020 2. The letter of credit is issued on bank letterhead.
SB55-ASA1-AA1,933,2121 3. The letter of credit is issued for an initial period of at least one year.
SB55-ASA1-AA1,933,2422 4. The letter of credit renews automatically unless, at least 90 days before the
23scheduled renewal date, the issuing bank gives the department written notice, in
24person or by certified mail, that the letter of credit will not be renewed.
SB55-ASA1-AA1,934,2
15. The letter of credit is issued in a form, and subject to any terms and
2conditions, that the department considers appropriate.
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