AB717: Bill Text

AB717,20,12 126.41 (9) A milk contractor who files and maintains security under s. 126.47 shall provide a monthly report to the department containing either of the following:

AB717,20,14 (a) The highest amount of the milk contractor's unpaid milk payroll obligations at any time during the preceding month.

AB717,20,16 (b) The total amount of milk payroll obligations that the milk contractor incurred during the preceding month.

AB717, s. 67 Section 67. 126.42 (6) of the statutes is amended to read:

AB717,20,19 126.42 (6) Fee changes. The department may modify the license fees under sub. (1) by rule, as provided under s. 126.81 (2).

AB717, s. 68 Section 68. 126.44 (1) (a) of the statutes is amended to read:

AB717,20,24 126.44 (1) (a) A milk contractor shall file an annual financial statement with the department before the department first licenses the milk contractor under s. 126.41 (1), unless the milk contractor reports no more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

AB717, s. 69 Section 69. 126.44 (1) (c) 1. of the statutes is amended to read:

AB717,21,3 126.44 (1) (c) 1. A contributing milk contractor who reports no more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

AB717, s. 70 Section 70. 126.44 (5) of the statutes is repealed and recreated to read:

AB717,21,9 126.44 (5) Reviewed or audited financial statement. A milk 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 milk contractor reports more than 2,500,000 hundredweight of milk under s. 126.41 (6) (bg), the milk contractor shall file an audited financial statement.

AB717, s. 71 Section 71. 126.45 (3) (a) of the statutes is amended to read:

AB717,21,15 126.45 (3) (a) A milk contractor who is required to file security under s. 126.47 (1) (a) is disqualified from the fund until the department releases that security under s. 126.47 (7) (a). This paragraph does not apply, during the period beginning on May 1, 2002, and ending on April 30, 2007, to a qualified producer agent who files security under s. 126.47 (3) (a) 3.

AB717, s. 72 Section 72. 126.45 (3) (b) of the statutes is renumbered 126.45 (3) (b) (intro.) and amended to read:

AB717,21,19 126.45 (3) (b) (intro.) A milk contractor is disqualified from the fund if the department denies does any of the following:

AB717,21,20 1. Denies, suspends, or revokes the milk contractor's license.

AB717, s. 73 Section 73. 126.45 (3) (b) 2. of the statutes is created to read:

AB717,21,23 126.45 (3) (b) 2. Issues an order under s. 126.85 disqualifying the milk contractor from the fund.

AB717, s. 74 Section 74. 126.45 (3) (c) of the statutes is repealed.

AB717, s. 75 Section 75. 126.45 (4) (a) of the statutes is amended to read:

AB717,22,5 126.45 (4) (a) A milk contractor disqualified under sub. (3) (c) (b) 2. may not engage in any activities for which a license is required under s. 126.41 (1) (a) if the milk contractor files an annual, quarterly, or interim financial statement under s. 126.44 that shows a current ratio of less than 1.25 to 1.0, a debt to equity ratio of more than 2.0 to 1.0, or negative equity.

AB717, s. 76 Section 76. 126.45 (5) of the statutes is created to read:

AB717,22,11 126.45 (5) Notice to producers. A milk contractor who is disqualified under sub. (3) shall immediately give written notice of the disqualification to all milk producers and producer agents to whom the milk contractor has unpaid milk payment obligations. The department may by rule or order specify the form and content of the notice.

AB717, s. 77 Section 77. 126.46 (1) (intro.) of the statutes is renumbered 126.46 (1) and amended to read:

AB717,22,17 126.46 (1) General. A contributing milk contractor shall pay an annual fund assessment for each license year. Except as provided in sub. (5m), the assessment equals $20 or the sum of the following, whichever is greater, unless in the amount specified by the department by rule specifies a different assessment:.

AB717, s. 78 Section 78. 126.46 (1) (a) and (b) of the statutes are repealed.

AB717, s. 79 Section 79. 126.46 (2) to (5) of the statutes are repealed.

AB717, s. 80 Section 80. 126.46 (5m) (intro.) of the statutes is amended to read:

AB717,22,24 126.46 (5m) Reduced assessment for certain milk contractors filing security. (intro.) If a contributing milk contractor files security under s. 126.47 (1) (b), the contributing milk contractor's fund assessment is the amount determined specified under sub. (1) reduced by an amount determined as follows:

AB717, s. 81 Section 81. 126.46 (5m) (a) of the statutes is renumbered 126.46 (5m) (a) (intro.) and amended to read:

AB717,23,6 126.46 (5m) (a) (intro.) Divide the amount of security that the milk contractor is required to file as determined under s. 126.47 (3) (b) by the amount of the milk contractor's estimated default exposure, as defined in s. 126.47 (1) (b) 1. 75 percent of the following:

AB717, s. 82 Section 82. 126.46 (5m) (a) 1. and 2. of the statutes are created to read:

AB717,23,11 126.46 (5m) (a) 1. If the milk contractor reports unpaid milk payroll obligations under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (a), that the milk contractor had at any time during the last 12 months.

AB717,23,15 2. If the milk contractor reports monthly milk payroll obligations under s. 126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 2. or (9) (b), that the milk contractor incurred in any month during the last 12 months.

AB717, s. 83 Section 83. 126.46 (5m) (b) of the statutes is amended to read:

AB717,23,18 126.46 (5m) (b) Multiply the amount of the assessment determined specified under sub. (1) by the amount determined under par. (a).

AB717, s. 84 Section 84. 126.47 (1) (a) 1. of the statutes is amended to read:

AB717,23,21 126.47 (1) (a) 1. The milk contractor reports more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

AB717, s. 85 Section 85. 126.47 (1) (b) of the statutes is repealed and recreated to read:

AB717,23,24 126.47 (1) (b) 1. In this paragraph, "estimated default exposure" means 75 percent of the following:

AB717,24,4 a. If the milk contractor reports unpaid milk payroll obligations under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (a), that the milk contractor had at any time during the last 12 months.

AB717,24,8 b. If the milk contractor reports monthly milk payroll obligations under s. 126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 2. or (9) (b), that the milk contractor incurred in any month during the last 12 months.

AB717,24,11 2. A milk contractor shall file security with the department, and shall maintain that security until the department releases it under sub. (7) (am), if all of the following apply:

AB717,24,14 a. The milk contractor's last annual financial statement under s. 126.44 (1) shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 2.0 to 1.0.

AB717,24,15 b. The milk contractor's estimated default exposure exceeds $20,000,000.

AB717, s. 86 Section 86. 126.47 (2) of the statutes is repealed.

AB717, s. 87 Section 87. 126.47 (3) (a) (intro.) of the statutes is amended to read:

AB717,24,21 126.47 (3) (a) (intro.) Except as provided in par. (b), a milk contractor who is required to file or maintain security under this section sub. (1) shall at all times maintain the following amount of security in an amount equal to at least 75 percent of the following:

AB717, s. 88 Section 88. 126.47 (3) (a) 1. and 2. of the statutes are repealed and recreated to read:

AB717,25,2 126.47 (3) (a) 1. If the milk contractor reports unpaid milk payroll obligations under s. 126.41 (6) (b) 1. and (9) (a), the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (b), that the milk contractor had at any time during the last 12 months.

AB717,25,6 2. If the milk contractor reports monthly milk payroll obligations under s. 126.41 (6) (b) 2. and (9) (b), the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 1. or (9) (b), that the milk contractor incurred in any month during the last 12 months.

AB717, s. 89 Section 89. 126.47 (3) (a) 3. of the statutes is repealed.

AB717, s. 90 Section 90. 126.47 (3) (b) (intro.) and 3. of the statutes are consolidated, renumbered 126.47 (3) (b) and amended to read:

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.