AB630: Bill Text

AB630,7,21 100.03 (5) (am) Interim statement. Except as provided in par. (c), a contractor shall file a interim statement as of the quarter that ends closest to November 30 with each application for renewal.

AB630, s. 21 Section 21. 100.03 (5) (b) of the statutes is amended to read:

AB630,8,2 100.03 (5) (b) (title) Additional or interim financial statement. Notwithstanding par. (c), the department may require a contractor to file a an annual financial statement or interim statement at any time. The department may require that a financial statement required under this paragraph be an audited financial statement or a reviewed financial statement.

AB630, s. 22 Section 22. 100.03 (5) (c) of the statutes is amended to read:

AB630,8,5 100.03 (5) (c) Exemptions. Paragraph (a) does Paragraphs (a) and (am) do not apply to any of the following:

AB630,8,9 1. A contractor who either plans to make payment on delivery for all farm products vegetables tendered or delivered by producers, or to procure all farm products vegetables from another contractor, and who submits a sworn and notarized statement to that effect under sub. (4) (c).

AB630,8,11 2. A contractor who files security with the department under sub. (8), except for a contractor who files security under sub. (8) (cm).

AB630,8,14 3. A producer-owned cooperative or organization that procures farm products vegetables solely on a cooperative pooling basis from its producer owners, and that submits under sub. (4) a sworn and notarized statement to that effect.

AB630, s. 23 Section 23. 100.03 (5) (e) of the statutes is amended to read:

AB630,8,22 100.03 (5) (e) (title) Certified or verified Audited or reviewed financial statement. A financial statement under this subsection may par. (a) shall be a certified or verified an audited financial statement or a reviewed financial statement, except that if during the year to which that financial statement pertains a contractor incurred total contractual obligations to producers, as reported under sub. (4) (a), of more than $250,000, the financial statement under par. (a) shall be certified an audited financial statement.

AB630, s. 24 Section 24. 100.03 (6) (b) 1. of the statutes is amended to read:

AB630,9,3 100.03 (6) (b) 1. If a procurement contract does not specify a payment date in writing, the contractor shall pay a liability to a producer by the 15th day of the month immediately following the month in which the producer tendered or delivered the farm products vegetables under the contract, or by an earlier date agreed upon between the parties.

AB630, s. 25 Section 25. 100.03 (6) (b) 3. of the statutes is amended to read:

AB630,9,18 100.03 (6) (b) 3. By January 31 10 of each registration year, a contractor shall pay for all farm products vegetables that were delivered by producers on or before December 31 of that registration year. This requirement does not apply if a written contract specifying a later payment date was approved by a vote of producers who delivered farm products vegetables to the contractor during the preceding registration year. To obtain the approval of producers, a contractor shall give advance written notice to every eligible producer. The notice shall include a copy of the proposed contract and shall announce a meeting at which producers will be asked to vote on the proposed contract. The notice shall also include a mail ballot by which a producer may cast his or her vote without attending the meeting. Voting shall be by secret ballot. The proposed contract shall be approved by a majority of the producers who vote on the proposed contract. The contractor shall file a sworn statement with the department, on a form provided by the department, certifying the results of the balloting.

AB630, s. 26 Section 26. 100.03 (6) (b) 4. of the statutes is amended to read:

AB630,9,24 100.03 (6) (b) 4. If a producer tenders or delivers farm products vegetables to a contractor after December 31 of any registration year, the contractor shall pay the producer for the farm products vegetables by the 15th day of the month following the month in which the farm products vegetables were tendered or delivered, or within 30 days by the 30th day after tender or delivery , whichever is later.

AB630, s. 27 Section 27. 100.03 (7) (a) 1. of the statutes is amended to read:

AB630,10,2 100.03 (7) (a) 1. The contractor's A minimum ratio of current assets to current liabilities shall be at least of 1.2 to 1 1.0 on its annual financial statement.

AB630, s. 28 Section 28. 100.03 (7) (a) 2. of the statutes is repealed and recreated to read:

AB630,10,5 100.03 (7) (a) 2. A minimum ratio of current assets to current liabilities of 1.0 to 1.0 at all times of the year other than the end of the contractor's fiscal year.

AB630, s. 29 Section 29. 100.03 (7) (a) 3. of the statutes is created to read:

AB630,10,7 100.03 (7) (a) 3. Equity equal to at least 25% of total assets at all times.

AB630, s. 30 Section 30. 100.03 (7) (c) (intro.) of the statutes is amended to read:

AB630,10,11 100.03 (7) (c) Exemptions. (intro.) A Paragraph (a) does not apply to a contractor is not required to meet the financial standards under par. (a) if any of the following applies:

AB630, s. 31 Section 31. 100.03 (7) (c) 1. of the statutes is amended to read:

AB630,10,14 100.03 (7) (c) 1. The contractor makes payment on delivery for all farm products vegetables obtained from producers.

AB630, s. 32 Section 32. 100.03 (8) (b) 6. of the statutes is repealed.

AB630, s. 33 Section 33. 100.03 (8) (bm) of the statutes is repealed.

AB630, s. 34 Section 34. 100.03 (8) (cm) of the statutes is created to read:

AB630,10,22 100.03 (8) (cm) Transitional security amounts. Notwithstanding par. (c), a contractor who does not meet the financial standards under sub. (7) but who does have a ratio of current assets to current liabilities of at least 1.2 to 1.0 on its annual financial statement and whose total assets exceed total liabilities shall file security in at least the following amounts for the license years indicated:

AB630,10,25 1. For the first license year beginning after the effective date of this subdivision .... [revisor inserts date], 25% of the contractor's anticipated maximum liability to growers of vegetables.

AB630,11,3 2. For the 2nd license year beginning after the effective date of this subdivision .... [revisor inserts date], 50% of the contractor's anticipated maximum liability to growers of vegetables.

AB630, s. 35 Section 35. 100.03 (15) (title) of the statutes is amended to read:

AB630,11,5 100.03 (15) (title) Farm product Vegetable grading and tare.

AB630, s. 36 Section 36. 100.03 (15) (a) (intro.) of the statutes is amended to read:

AB630,11,10 100.03 (15) (a) Grading procedures and grade standards. (intro.) If under a procurement contract the amount received by the producer depends on the grade of the farm products vegetables, the farm products vegetables shall be graded in compliance with all of the following:

AB630, s. 37 Section 37. 100.03 (15) (c) of the statutes is amended to read:

AB630,11,13 100.03 (15) (c) Price-fixing not permitted. This subsection does not fix or regulate the price paid for any farm product vegetable.

AB630, s. 38 Section 38. 100.03 (18) of the statutes is amended to read:

AB630,11,24 100.03 (18) Summary order requiring payment on delivery. If the department has reasonable grounds to believe that a contractor does not meet the minimum financial standards under sub. (7), and does not have adequate security on file under sub. (8), the department may issue a summary special order requiring the contractor to make payment on delivery for all farm products vegetables. A summary special order shall set forth the specific basis for the order. The order shall remain in effect until the contractor meets the financial standards under sub. (7) or files adequate security under sub. (8). A person adversely affected by a special order under this section shall be given a prompt hearing before the department upon request, under ch. 227.

AB630, s. 39 Section 39. 100.03 (19) (a) (intro.) of the statutes is amended to read:

AB630,12,5 100.03 (19) (a) Grounds. (intro.) The department may summarily suspend the contractor's registration certificate when necessary to prevent clear and imminent harm to producers if the department has reasonable grounds to believe that a contractor has failed to make payment on delivery for farm products vegetables, procured from producers, contrary to any of the following:

AB630,12,6 (End)