AB630,4,2524 (w) "Producer" means a person who produces and sells a farm product
25vegetable, or who grows a farm product vegetable under contract.
AB630,5,2
1(wm) "Producer claim" means a claim held by a producer for his or her farm
2products
vegetables.
AB630, s. 9 3Section 9. 100.03 (1) (ym) of the statutes is created to read:
AB630,5,54 100.03 (1) (ym) "Reviewed financial statement" means a financial statement,
5other than an audited financial statement, that is all of the following:
AB630,5,66 1. Sworn and notarized by the contractor.
AB630,5,97 2. Reviewed according to generally accepted accounting principles by an
8independent certified public accountant or a public accountant holding a certificate
9of authority under ch. 442.
AB630, s. 10 10Section 10. 100.03 (1) (zm) of the statutes is amended to read:
AB630,5,1311 100.03 (1) (zm) "Subsidiary" means a corporation or business entity that is
12owned, controlled or operated by an operator, and that procures a farm product
13vegetable for use by the operator.
AB630, s. 11 14Section 11. 100.03 (1) (zp) of the statutes is repealed.
AB630, s. 12 15Section 12. 100.03 (1) (zs) of the statutes is created to read:
AB630,5,1816 100.03 (1) (zs) "Vegetable" means any vegetable that is grown or sold for use
17in food processing, whether or not that vegetable is actually processed as food.
18"Vegetable" includes sweet corn, but does not include grain.
AB630, s. 13 19Section 13. 100.03 (2) (a) of the statutes is amended to read:
AB630,5,2320 100.03 (2) (a) Requirement. No contractor may enter into a procurement
21contract with a producer unless the contractor holds a registration certificate from
22the department. A registration certificate expires on March January 31 annually
23and is not transferable.
AB630, s. 14 24Section 14. 100.03 (3) (a) 2. of the statutes is amended to read:
AB630,6,5
1100.03 (3) (a) 2. Unless the department by rule establishes a different fee, a fee
2of one cent for each $100 in the total contractual obligations reported under sub. (4)
3(a). The fee under this subdivision is not required if all farm product vegetable
4grading is performed or supervised by the department under contract with the
5contractor.
AB630, s. 15 6Section 15. 100.03 (3) (b) of the statutes is amended to read:
AB630,6,147 100.03 (3) (b) Surcharge for operating without a registration certificate. A
8contractor who applies for a registration certificate under sub. (2) shall pay a
9surcharge of $500 if the department determines that, within 365 days before
10submitting the application, the contractor procured a farm product vegetable from
11a producer without a registration certificate in violation of sub. (2). Payment of the
12surcharge does not relieve the contractor of any other civil or criminal liability that
13results from the procurement of the farm product vegetable, but it does not constitute
14evidence of any law violation.
AB630, s. 16 15Section 16. 100.03 (4) (a) of the statutes is amended to read:
AB630,6,1916 100.03 (4) (a) The contractor's total paid and unpaid contractual obligations to
17producers, for farm products vegetables tendered or delivered, that have accrued
18during the registration year immediately preceding the registration year for which
19application is made.
AB630, s. 17 20Section 17. 100.03 (4) (c) of the statutes is amended to read:
AB630,7,521 100.03 (4) (c) The contractor's anticipated maximum liability to producers
22during the registration year for which application is made. The application shall
23state if the contractor anticipates a maximum liability of zero. If so, the application
24also shall state whether the contractor anticipates a maximum liability of zero
25because the contractor plans to make cash payment on delivery under every

1procurement contract, or because the contractor plans to procure all farm products
2vegetables from another contractor. A contractor shall immediately notify the
3department in writing if, at any time during the registration year, the contractor has
4reason to believe that the contractor's maximum liability will exceed the maximum
5liability previously anticipated and reported to the department.
AB630, s. 18 6Section 18. 100.03 (4) (f) of the statutes is amended to read:
AB630,7,107 100.03 (4) (f) Whether the contractor is a producer-owned cooperative or
8organization doing business on a cooperative pooling basis with its producer owners,
9and whether the producer-owned cooperative or organization procures any farm
10products
vegetables from producers who are not its producer owners.
AB630, s. 19 11Section 19. 100.03 (5) (a) 2. of the statutes is amended to read:
AB630,7,1712 100.03 (5) (a) 2. Except as provided under par. (c), a contractor shall file an
13annual financial statement with the department as a condition to the renewal or
14continuation of the contractor's registration certificate under sub. (2). An annual
15financial statement shall be filed by the 15th day of the 4th month commencing after
16the close of the contractor's fiscal year, except that the department may, for cause,
17extend the deadline for filing the annual financial statement for up to 30 days
.
AB630, s. 20 18Section 20. 100.03 (5) (am) of the statutes is created to read:
AB630,7,2119 100.03 (5) (am) Interim statement. Except as provided in par. (c), a contractor
20shall file a interim statement as of the quarter that ends closest to November 30 with
21each application for renewal.
AB630, s. 21 22Section 21. 100.03 (5) (b) of the statutes is amended to read:
AB630,8,223 100.03 (5) (b) (title) Additional or interim financial statement.
24Notwithstanding par. (c), the department may require a contractor to file a an
25annual
financial statement or interim statement at any time. The department may

1require that a financial statement required under this paragraph be an audited
2financial statement or a reviewed financial statement.
AB630, s. 22 3Section 22. 100.03 (5) (c) of the statutes is amended to read:
AB630,8,54 100.03 (5) (c) Exemptions. Paragraph (a) does Paragraphs (a) and (am) do not
5apply to any of the following:
AB630,8,96 1. A contractor who either plans to make payment on delivery for all farm
7products
vegetables tendered or delivered by producers, or to procure all farm
8products
vegetables from another contractor, and who submits a sworn and
9notarized statement to that effect under sub. (4) (c).
AB630,8,1110 2. A contractor who files security with the department under sub. (8), except
11for a contractor who files security under sub. (8) (cm)
.
AB630,8,1412 3. A producer-owned cooperative or organization that procures farm products
13vegetables solely on a cooperative pooling basis from its producer owners, and that
14submits under sub. (4) a sworn and notarized statement to that effect.
AB630, s. 23 15Section 23. 100.03 (5) (e) of the statutes is amended to read:
AB630,8,2216 100.03 (5) (e) (title) Certified or verified Audited or reviewed financial
17statement.
A financial statement under this subsection may par. (a) shall be a
18certified or verified
an audited financial statement or a reviewed financial
19statement, except that if during the year to which that financial statement pertains
20a contractor incurred total contractual obligations to producers, as reported under
21sub. (4) (a), of more than $250,000, the financial statement under par. (a) shall be
22certified an audited financial statement.
AB630, s. 24 23Section 24. 100.03 (6) (b) 1. of the statutes is amended to read:
AB630,9,324 100.03 (6) (b) 1. If a procurement contract does not specify a payment date in
25writing, the contractor shall pay a liability to a producer by the 15th day of the month

1immediately following the month in which the producer tendered or delivered the
2farm products vegetables under the contract, or by an earlier date agreed upon
3between the parties.
AB630, s. 25 4Section 25. 100.03 (6) (b) 3. of the statutes is amended to read:
AB630,9,185 100.03 (6) (b) 3. By January 31 10 of each registration year, a contractor shall
6pay for all farm products vegetables that were delivered by producers on or before
7December 31 of that registration year. This requirement does not apply if a written
8contract specifying a later payment date was approved by a vote of producers who
9delivered farm products vegetables to the contractor during the preceding
10registration year. To obtain the approval of producers, a contractor shall give
11advance written notice to every eligible producer. The notice shall include a copy of
12the proposed contract and shall announce a meeting at which producers will be asked
13to vote on the proposed contract. The notice shall also include a mail ballot by which
14a producer may cast his or her vote without attending the meeting. Voting shall be
15by secret ballot. The proposed contract shall be approved by a majority of the
16producers who vote on the proposed contract. The contractor shall file a sworn
17statement with the department, on a form provided by the department, certifying the
18results of the balloting.
AB630, s. 26 19Section 26. 100.03 (6) (b) 4. of the statutes is amended to read:
AB630,9,2420 100.03 (6) (b) 4. If a producer tenders or delivers farm products vegetables to
21a contractor after December 31 of any registration year, the contractor shall pay the
22producer for the farm products vegetables by the 15th day of the month following the
23month in which the farm products vegetables were tendered or delivered, or within
2430 days
by the 30th day after tender or delivery , whichever is later.
AB630, s. 27 25Section 27. 100.03 (7) (a) 1. of the statutes is amended to read:
AB630,10,2
1100.03 (7) (a) 1. The contractor's A minimum ratio of current assets to current
2liabilities shall be at least of 1.2 to 1 1.0 on its annual financial statement.
AB630, s. 28 3Section 28. 100.03 (7) (a) 2. of the statutes is repealed and recreated to read:
AB630,10,54 100.03 (7) (a) 2. A minimum ratio of current assets to current liabilities of 1.0
5to 1.0 at all times of the year other than the end of the contractor's fiscal year.
AB630, s. 29 6Section 29. 100.03 (7) (a) 3. of the statutes is created to read:
AB630,10,77 100.03 (7) (a) 3. Equity equal to at least 25% of total assets at all times.
AB630, s. 30 8Section 30. 100.03 (7) (c) (intro.) of the statutes is amended to read:
AB630,10,119 100.03 (7) (c) Exemptions. (intro.) A Paragraph (a) does not apply to a
10contractor is not required to meet the financial standards under par. (a) if any of the
11following applies:
AB630, s. 31 12Section 31. 100.03 (7) (c) 1. of the statutes is amended to read:
AB630,10,1413 100.03 (7) (c) 1. The contractor makes payment on delivery for all farm
14products
vegetables obtained from producers.
AB630, s. 32 15Section 32. 100.03 (8) (b) 6. of the statutes is repealed.
AB630, s. 33 16Section 33. 100.03 (8) (bm) of the statutes is repealed.
AB630, s. 34 17Section 34. 100.03 (8) (cm) of the statutes is created to read:
AB630,10,2218 100.03 (8) (cm) Transitional security amounts. Notwithstanding par. (c), a
19contractor who does not meet the financial standards under sub. (7) but who does
20have a ratio of current assets to current liabilities of at least 1.2 to 1.0 on its annual
21financial statement and whose total assets exceed total liabilities shall file security
22in at least the following amounts for the license years indicated:
AB630,10,2523 1. For the first license year beginning after the effective date of this subdivision
24.... [revisor inserts date], 25% of the contractor's anticipated maximum liability to
25growers of vegetables.
AB630,11,3
12. For the 2nd license year beginning after the effective date of this subdivision
2.... [revisor inserts date], 50% of the contractor's anticipated maximum liability to
3growers of vegetables.
AB630, s. 35 4Section 35. 100.03 (15) (title) of the statutes is amended to read:
AB630,11,55 100.03 (15) (title) Farm product Vegetable grading and tare.
AB630, s. 36 6Section 36. 100.03 (15) (a) (intro.) of the statutes is amended to read:
AB630,11,107 100.03 (15) (a) Grading procedures and grade standards. (intro.) If under a
8procurement contract the amount received by the producer depends on the grade of
9the farm products vegetables, the farm products vegetables shall be graded in
10compliance with all of the following:
AB630, s. 37 11Section 37. 100.03 (15) (c) of the statutes is amended to read:
AB630,11,1312 100.03 (15) (c) Price-fixing not permitted. This subsection does not fix or
13regulate the price paid for any farm product vegetable.
AB630, s. 38 14Section 38. 100.03 (18) of the statutes is amended to read:
AB630,11,2415 100.03 (18) Summary order requiring payment on delivery. If the department
16has reasonable grounds to believe that a contractor does not meet the minimum
17financial standards under sub. (7), and does not have adequate security on file under
18sub. (8), the department may issue a summary special order requiring the contractor
19to make payment on delivery for all farm products vegetables. A summary special
20order shall set forth the specific basis for the order. The order shall remain in effect
21until the contractor meets the financial standards under sub. (7) or files adequate
22security under sub. (8). A person adversely affected by a special order under this
23section shall be given a prompt hearing before the department upon request, under
24ch. 227.
AB630, s. 39 25Section 39. 100.03 (19) (a) (intro.) of the statutes is amended to read:
AB630,12,5
1100.03 (19) (a) Grounds. (intro.) The department may summarily suspend the
2contractor's registration certificate when necessary to prevent clear and imminent
3harm to producers if the department has reasonable grounds to believe that a
4contractor has failed to make payment on delivery for farm products vegetables,
5procured from producers, contrary to any of the following:
AB630,12,66 (End)
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