AB717: Bill Text

AB717,25,13 126.47 (3) (b) A milk contractor who is only required to file or maintain security only under sub. (1) (b) shall at all times maintain security equal to the milk contractor's estimated default exposure, as defined in sub. (1) (b) 1., less the following amount: 3. For a license year that begins on May 1, 2005, or later, $20,000,000.

AB717, s. 91 Section 91. 126.47 (3) (b) 1. and 2. of the statutes are repealed.

AB717, s. 92 Section 92. 126.47 (4) (e) of the statutes is repealed.

AB717, s. 93 Section 93. 126.47 (7) (a) 1. and 2. of the statutes are amended to read:

AB717,25,22 126.47 (7) (a) 1. The milk contractor reports not more than $1,500,000 in milk payroll obligations under s. 126.41 (6) (a) 150,000 hundredweight of milk under s. 126.41 (6) (bg) for at least 2 consecutive years and the milk contractor pays the quarterly fund assessment installment amount that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the date when the most recent quarterly installment date under s. 126.46 (6) was due.

AB717,26,4 2. The milk contractor's annual financial statement under s. 126.44 shows positive equity for at least 2 consecutive years, the financial statements are audited or, if the milk contractor reports $6,000,000 or less in annual milk payroll obligations under s. 126.41 (6) (a), reviewed, and the milk contractor pays the quarterly fund assessment installment amount that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the date when the most recent quarterly installment date under s. 126.46 (6) was due.

AB717, s. 94 Section 94. 126.47 (7) (b) of the statutes is repealed.

AB717, s. 95 Section 95. 126.50 (intro.) of the statutes is amended to read:

AB717,26,9 126.50 Milk contractors; prohibited practices. (intro.) No milk contractor, or officer, employee, or agent of a milk contractor, may do any of the following:

AB717, s. 96 Section 96. 126.50 (6) of the statutes is created to read:

AB717,26,12 126.50 (6) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.

AB717, s. 97 Section 97. 126.56 (4) of the statutes is amended to read:

AB717,26,16 126.56 (4) License fees and surcharges. A vegetable contractor applying for a license under sub. (1) shall pay the following fees and surcharges , unless in amounts that the department specifies a different fee or surcharge amount by rule:

AB717,26,17 (a) A nonrefundable basic license processing fee of $25.

AB717,26,20 (b) A fee of $25 plus 5.75 cents for each $100 in based on the amount of contract obligations reported under sub. (9) (a), less any credit provided under sub. (6), except that this paragraph does not apply to a vegetable contractor to whom par. (f) applies.

AB717,26,25 (c) A license surcharge of $500 if the department determines that, within 365 days before submitting the license application, the applicant operated as a vegetable contractor without a license in violation of sub. (1). The applicant shall also pay any license fees, license surcharges, and fund assessments that are still due for the license year in which the applicant violated sub. (1).

AB717,27,3 (d) A license surcharge of $100 if during the preceding 12 months the applicant failed to file an annual financial statement required under s. 126.58 (1) (b) by the applicable deadline.

AB717,27,5 (e) A license surcharge of $100 if a renewal applicant fails to renew a license by the license expiration date of January 31.

AB717,27,8 (f) If A fee if the vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with s. 126.595 (1), a fee of $500 or another amount established by the department by rule.

AB717, s. 98 Section 98. 126.56 (4m) of the statutes is amended to read:

AB717,27,13 126.56 (4m) Effect of payment of surcharge. Payment of a license surcharge under sub. (3) (4) (c) does not relieve the applicant of any other civil or criminal liability that results from the violation of sub. (1), but does not constitute evidence of any law violation.

AB717, s. 99 Section 99. 126.56 (9) (am) of the statutes is created to read:

AB717,27,16 126.56 (9) (am) The amount of contract obligations under par. (a) less any amount under par. (i) 2.

AB717, s. 100 Section 100. 126.56 (9) (i) of the statutes is created to read:

AB717,27,20 126.56 (9) (i) All of the following information related to each vegetable producer or producer agent that under s. 126.70 (1) (b) has permanently waived eligibility to file a default claim against the applicant:

AB717,27,22 1. A copy of the written waiver that the vegetable producer or producer agent filed under s. 126.70 (1) (c).

AB717,28,4 2. The total amount of contract obligations that the applicant incurred during the applicant's last completed fiscal year under vegetable procurement contracts with that vegetable producer or producer agent. If the applicant has not yet operated as a vegetable contractor, the applicant shall estimate the total amount of contract obligations that the applicant will incur during the applicant's first complete fiscal year under vegetable procurement contracts with that vegetable producer or producer agent.

AB717, s. 101 Section 101. 126.56 (12) of the statutes is repealed and recreated to read:

AB717,28,10 126.56 (12) Monthly reports. A vegetable contractor who files security under s. 126.61 shall provide a monthly report to the department showing the highest amount of the vegetable contractor's unpaid contract obligations at any time during the preceding month and the total amount of unpaid contract obligations under deferred payment contracts.

AB717, s. 102 Section 102. 126.58 (1) (a) and (b) of the statutes are amended to read:

AB717,28,15 126.58 (1) (a) Except as provided in par. (c), a vegetable contractor shall file an annual financial statement with the department, before the department first licenses the vegetable contractor under s. 126.56 (1), if the vegetable contractor reports more than $500,000 in contract obligations under s. 126.56 (9) (a) (am).

AB717,28,24 (b) Except as provided in par. (c), a vegetable contractor licensed under s. 126.56 (1) shall file an annual financial statement with the department during each license year if the vegetable contractor's license application for that year reports more than $500,000 in contract obligations under s. 126.56 (9) (a) (am). The vegetable contractor shall file the annual financial statement by the 15th day of the 4th month following the close of the vegetable contractor's fiscal year, except that the department may extend the filing deadline for up to 30 days if the vegetable contractor, or the accountant reviewing or auditing the financial statement, files a written extension request at least 10 days before the filing deadline.

AB717, s. 103 Section 103. 126.58 (3) of the statutes is repealed and recreated to read:

AB717,29,5 126.58 (3) Reviewed or audited financial statement. A vegetable contractor filing a financial statement under sub. (1) or (2) may file either a reviewed financial statement or an audited financial statement, except that if the amount that the vegetable contractor last reported under s. 126.56 (9) (am) is more than $7,500,000, the vegetable contractor shall file an audited financial statement.

AB717, s. 104 Section 104. 126.59 (2) (c) (intro.) of the statutes is renumbered 126.59 (2) (c) and amended to read:

AB717,29,11 126.59 (2) (c) A vegetable contractor is disqualified from the fund, and required to pay cash on delivery under vegetable procurement contracts, if the department issues a written notice an order under s. 126.85 disqualifying the vegetable contractor for cause. Cause may include any of the following: from the fund.

AB717, s. 105 Section 105. 126.59 (2) (c) 1. to 4. of the statutes are repealed.

AB717, s. 106 Section 106. 126.59 (4) of the statutes is created to read:

AB717,29,18 126.59 (4) Notice to producers. A vegetable contractor who is disqualified under sub. (2) (b) or (c) shall immediately give written notice of the disqualification to all vegetable producers and producer agents to whom the vegetable contractor has unpaid obligations under vegetable procurement contracts. The department may by rule or order specify the required form and content of the notice.

AB717, s. 107 Section 107. 126.60 (1) (a) and (b) of the statutes are amended to read:

AB717,29,23 126.60 (1) (a) The vegetable contractor's current ratio assessment. The current ratio assessment for a license year equals the vegetable contractor's current ratio assessment rate under sub. (2) multiplied by the amount reported under s. 126.56 (9) (a) (am) in the vegetable contractor's license application for that license year.

AB717,30,3 126.60 (1) (b) The vegetable contractor's debt to equity ratio assessment. The debt to equity ratio assessment for a license year equals the vegetable contractor's debt to equity ratio assessment rate under sub. (4) multiplied by the amount reported under s. 126.56 (9) (a) (am) in the vegetable contractor's license application for that license year.

AB717, s. 108 Section 108. 126.60 (1) (c) of the statutes is repealed.

AB717, s. 109 Section 109. 126.60 (5m) (intro.) and (a) of the statutes are amended to read:

AB717,30,9 126.60 (5m) Reduced assessment for certain vegetable contractors filing security. (intro.) If a vegetable contractor files security under s. 126.61 (1) (bm) (b), the vegetable contractor's assessment is the amount determined under sub. (1) reduced by an amount determined as follows:

AB717,30,12 (a) Divide the amount of security that the vegetable contractor is required to file as determined under s. 126.61 (3) (b) by the amount of the vegetable contractor's estimated default exposure, as defined in s. 126.61 (1) (bm) (b) 1.

AB717, s. 110 Section 110. 126.61 (1) (a) 1. of the statutes is amended to read:

AB717,30,15 126.61 (1) (a) 1. The vegetable contractor reports more than $1,000,000 $500,000 in annual contract obligations under s. 126.56 (9) (a) (am).

AB717, s. 111 Section 111. 126.61 (1) (b) of the statutes is repealed and recreated to read:

AB717,30,20 126.61 (1) (b) 1. In this paragraph, "estimated default exposure" means 75 percent of the highest amount of unpaid contract obligations, reported by a vegetable contractor under s. 126.56 (9) (b) or (12) that the vegetable contractor had at any time during the last 12 months.

AB717,30,23 2. Except as provided in par. (c), a vegetable contractor shall file security with the department, and shall maintain that security until the department releases it under sub. (7) (bm), if at any time all of the following apply:

AB717,31,3 a. The vegetable contractor's latest annual financial statement under s. 126.58 (1) shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.

AB717,31,4 b. The vegetable contractor's estimated default exposure exceeds $20,000,000.

AB717, s. 112 Section 112. 126.61 (1) (bm) of the statutes is repealed.

AB717, s. 113 Section 113. 126.61 (2) of the statutes is repealed.

AB717, s. 114 Section 114. 126.61 (3) (a) (intro.) and 1. of the statutes are consolidated, renumbered 126.61 (3) and amended to read:

AB717,31,13 126.61 (3) Except as provided in par. (b), a vegetable contractor who is required to file or maintain security under this section shall, at all times, maintain security that is at least equal to the sum of the following: 1. Seventy-five 75 percent of the amount of unpaid contract obligations last reported under s. 126.56 (9) (b) or (12) (a), except that this amount is not required of a contributing vegetable contractor.

AB717, s. 115 Section 115. 126.61 (3) (a) 2. of the statutes is repealed.

AB717, s. 116 Section 116. 126.61 (3) (b) (intro.) and 3. of the statutes are consolidated, renumbered 126.61 (3) (b) and amended to read:

AB717,31,21 126.61 (3) (b) A vegetable contractor who is only required to file or maintain security only under sub. (1) (bm) (b) shall at all times maintain security equal to the vegetable contractor's estimated default exposure, as defined in sub. (1) (bm) (b) 1., less the following amount: 3. For a license year that begins on February 1, 2005, or later, $20,000,000.

AB717, s. 117 Section 117. 126.61 (3) (b) 1. and 2. of the statutes are repealed.

AB717, s. 118 Section 118. 126.61 (4) (e) of the statutes is repealed.

AB717, s. 119 Section 119. 126.61 (7) (a) (intro.) of the statutes is amended to read:

AB717,32,4 126.61 (7) (a) (intro.) The department may release security filed under sub. (1) (a), except for any amount of security that the vegetable contractor is required to file because sub. (1) (b) or (bm) applies to the vegetable contractor, if any of the following applies:

AB717, s. 120 Section 120. 126.61 (7) (a) 1. of the statutes is amended to read:

AB717,32,11 126.61 (7) (a) 1. The vegetable contractor reports less than $1,000,000 $500,000 in annual contract obligations under s. 126.56 (9) (a) for at least 2 consecutive years and the vegetable contractor pays the quarterly fund assessment that would have been required of the vegetable contractor if the vegetable contractor had been a contributing vegetable contractor on the most recent quarterly installment date under s. 126.60 (6).

AB717, s. 121 Section 121. 126.61 (7) (b) of the statutes is repealed.

AB717, s. 122 Section 122. 126.61 (7) (bm) of the statutes is amended to read:

AB717,32,19 126.61 (7) (bm) The department may release security filed under sub. (1) (bm) (b), except for any amount of security that the vegetable contractor is required to file because sub. (1) (a) or (b) applies to the vegetable contractor, if the vegetable contractor files 2 consecutive annual financial statements under s. 126.58 showing that the vegetable contractor no longer has negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.

AB717, s. 123 Section 123. 126.61 (7) (c) of the statutes is repealed.

AB717, s. 124 Section 124. 126.62 (2) (intro.) of the statutes is renumbered 126.62 (2) and amended to read:

AB717,32,25 126.62 (2) Records retention. A vegetable contractor shall keep all of the following records required under sub. (1) for at least 6 years from the date of their creation:.

AB717, s. 125 Section 125. 126.62 (2) (a) and (b) of the statutes are repealed.

AB717, s. 126 Section 126. 126.63 (4) (c) of the statutes is repealed and recreated to read:

AB717,33,5 126.63 (4) (c) A vegetable contractor may pay after January 31 for processing vegetables delivered on or before December 31, in accordance with a deferred payment contract, if all of the following apply:

AB717,33,6 1. The vegetable contractor complies with sub. (5).

AB717,33,8 2. The deferred payment contract specifies a date by which full payment must be paid.

AB717,33,13 3. The deferred payment contract clearly and conspicuously discloses that the vegetable producer or producer agent is disqualified from filing a default claim under s. 126.70 in the event that the vegetable contractor defaults on payment under the deferred payment contract. The department may by rule or order specify the form and content of the disclosure.

AB717, s. 127 Section 127. 126.64 (intro.) of the statutes is amended to read:

AB717,33,17 126.64 Vegetable contractors; prohibited practices. (intro.) No vegetable contractor, or officer, employee, or agent of a vegetable contractor, may do any of the following:

AB717, s. 128 Section 128. 126.64 (7) of the statutes is created to read:

AB717,33,20 126.64 (7) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.

AB717, s. 129 Section 129. 126.70 (1) of the statutes is renumbered 126.70 (1) (a), and 126.70 (1) (a) (intro.), as renumbered, is amended to read:

AB717,34,2 126.70 (1) (a) (intro.) Any A person who is one of the following persons may file a default claim with the department against a contractor who is licensed, or required to be licensed, under this chapter, unless the person has waived eligibility to file a claim as provided in pars. (b) and (c):

AB717, s. 130 Section 130. 126.70 (1) (b) and (c) of the statutes are created to read:

AB717,34,6 126.70 (1) (b) A producer or producer agent may permanently waive eligibility to file a default claim against a grain dealer, milk contractor, or vegetable contractor if, at the time of the waiver, any of the following applies:

AB717,34,8 1. The producer or producer agent has a greater than 50 percent ownership interest in the grain dealer, milk contractor, or vegetable contractor.

AB717,34,11 2. Persons who collectively have a greater than 50 percent ownership interest in the producer or producer agent also collectively have a greater than 50 percent ownership interest in the grain dealer, milk contractor, or vegetable contractor.

AB717,34,16 (c) A producer or producer agent shall file a waiver under par. (b) with the department in writing, on a form provided by the department. In the waiver, the producer or producer agent shall include documentation to show that the requirements in par. (b) are satisfied and that the individuals signing the waiver are authorized to do so on behalf of the producer or producer agent.