AB717: Bill Text

AB717,35,4 (h) That the claim relates to a payment that first became due, under a deferred payment contract for processing vegetables, after January 31 of any year for processing vegetables tendered or delivered to a vegetable contractor on or before December 31 of the preceding year.

AB717,35,8 (i) That the claim relates to grain, milk, or vegetables that were never tendered to or received and accepted by the defaulting grain dealer, milk contractor, or vegetable contractor. This paragraph does not apply to unharvested acreage, as defined in s. 126.55 (17).

AB717,35,10 (j) That the claimant has, under sub. (1) (b), permanently waived eligibility to file the claim.

AB717,35,13 (k) That any of the following circumstances exists and causes the claim to be an unfair or unreasonable claim against the fund, regardless of whether the claimant has, under sub. (1) (b), waived the claim:

AB717,35,15 1. The claimant had a greater than 50 percent ownership interest in the defaulting contractor at the time of the default or at relevant times before the default.

AB717,35,18 2. Persons who collectively had a greater than 50 percent ownership interest in the claimant also had a greater than 50 percent ownership interest in the defaulting contractor at the time of the default or at relevant times before the default.

AB717,35,22 3. The claimant, or any of the claimant's owners, officers, or managers, had substantial management control, at the time of the default or at relevant times before the default, over any of the defaulting contractor's operations involved in the default.

AB717,36,2 4. The claimant, or any of the claimant's owners, officers, or managers, conspired with the defaulting contractor, or any of the defaulting contractor's owners, officers, or managers, to create a default and a resulting claim against the fund.

AB717,36,3 5. Other circumstances that the department specifies by rule.

AB717, s. 133 Section 133. 126.70 (6) (g) of the statutes is created to read:

AB717,36,7 126.70 (6) (g) Specify any further actions required of a claimant, including any further actions required to obtain payment under a trade credit insurance policy or other contingent financial backing under s. 126.06.

AB717, s. 134 Section 134. 126.71 (1) (a) (intro.) of the statutes is amended to read:

AB717,36,11 126.71 (1) (a) (intro.) Except as provided in par. (d) or (e), for For each default claim allowed under s. 126.70 against a grain dealer or milk contractor who was a contributing contractor when the default occurred:

AB717, s. 135 Section 135. 126.71 (1) (d) and (e) of the statutes are repealed.

AB717, s. 136 Section 136. 126.71 (3) (a) 1. to 3. of the statutes are repealed.

AB717, s. 137 Section 137. 126.72 (2) of the statutes is amended to read:

AB717,36,21 126.72 (2) Proceeds of contingent financial backing. The department, at the direction of the secretary of agriculture, trade and consumer protection, shall draw on the contingent financial backing acquired under s. 126.06 to make payments authorized under s. 126.71 (1), to the extent that those payments exceed the deductible amount in sub. (3). If the contingent financial backing is in the form of a trade credit insurance policy that appears to cover the authorized payments, the department shall file a claim against the policy.

AB717, s. 138 Section 138. 126.73 (1) of the statutes is amended to read:

AB717,37,2 126.73 (1) Payments from the fund Generally. The Except as provided in sub. (2) or (3), the department may demand and collect, from a contractor, any claim amounts that the department pays under s. 126.72 (1) or under s. 126.72 (2) with the proceeds of a loan under s. 126.06 (1) (b) contingent financial backing under s. 126.06 (1) because of the contractor's default.

AB717, s. 139 Section 139. 126.73 (3) of the statutes is created to read:

AB717,37,8 126.73 (3) Trade credit insurance payments. If the department files a claim against a trade credit insurance policy under s. 126.72 (2) and obtains and uses proceeds from the insurance policy to make payments authorized under s. 126.72 (2), the trade credit insurer may demand and collect the amount of those payments from the defaulting contractor.

AB717, s. 140 Section 140. 126.81 (intro.) and (1) of the statutes are renumbered 126.81 (1) (intro.) and (a).

AB717, s. 141 Section 141. 126.81 (1) (c) of the statutes is created to read:

AB717,37,13 126.81 (1) (c) Specify additional circumstances for denying claims under s. 126.70 (4) (k).

AB717, s. 142 Section 142. 126.81 (2) of the statutes is renumbered 126.81 (1) (b) and amended to read:

AB717,37,17 126.81 (1) (b) Modify the license fees and surcharges provided in under s. 126.11 (4), 126.26 (3), 126.41 (3), 126.42, or 126.56 (4).

AB717, s. 143 Section 143. 126.81 (2m) of the statutes is created to read:

AB717,37,19 126.81 (2m) The department shall promulgate rules to do all of the following:

AB717,37,21 (a) Specify license fees and surcharges under ss. 126.11 (4), 126.26 (3), and 126.56 (4).

AB717,37,22 (b) Specify fund assessments under s. 126.46 (1).

AB717, s. 144 Section 144. 126.81 (3) of the statutes is repealed.

AB717, s. 145 Section 145. 126.81 (4) of the statutes is renumbered 126.81 (d).

AB717, s. 146 Section 146. 126.85 (1) of the statutes is amended to read:

AB717,38,8 126.85 (1) General. The department may, by special order, require a contractor to remedy a violation of this chapter or, a rule promulgated under this chapter, or a condition imposed under s. 126.86 (1). The department may order the contractor to take specific remedial actions, including actions to remedy deficiencies or to prevent losses to persons protected under this chapter. In an order under this subsection, the department may disqualify the contractor from the fund pending compliance with the order. Except as provided in sub. (2), the department shall give the contractor notice and an opportunity for hearing before the department issues an order.

AB717, s. 147 Section 147. 126.85 (2) (h) and (i) of the statutes are created to read:

AB717,38,11 126.85 (2) (h) A contractor fails to file a financial statement with the department by the time or in the form required under this chapter.

AB717,38,14 (i) A contractor fails to pay an amount owed under s. 126.73 within 60 days after the contractor receives a written demand for payment from the department or other person to whom payment is due under s. 126.73.

AB717, s. 148 Section 148. 126.86 (1) (f) of the statutes is repealed and recreated to read:

AB717,38,18 126.86 (1) (f) The contractor fails to pay an amount owed under s. 126.73 within 60 days after the contractor receives a written demand for payment from the department or other person to whom payment is due under s. 126.73.

AB717, s. 149 Section 149. 126.86 (1) (g) of the statutes is repealed.

AB717, s. 150 Section 150. 126.86 (3) (a) of the statutes is amended to read:

AB717,39,2 126.86 (3) (a) The department may, without prior notice or hearing, summarily suspend, revoke, or impose conditions on a license held by a contractor if the department finds that any of the conditions identified in s. 126.85 (2) exist or otherwise finds that summary action is necessary to prevent a clear and imminent threat of harm to persons protected under this chapter. Conditions indicating a clear and imminent threat of harm include those identified in s. 126.85 (2).

AB717, s. 151 Section 151. 126.88 of the statutes is renumbered 126.88 (1) and amended to read:

AB717,39,8 126.88 (1) The department may by rule modify the fund assessments provided under s. 126.15, 126.30, 126.46, or 126.60. The department shall modify fund assessments under ss. 126.15, 126.30, 126.46, and 126.60 as necessary to do all of the following:

AB717,39,10 (a) Maintain an overall fund balance of at least $5,000,000 after January 1, 2006, but not more than $22,000,000 at any time.

AB717,39,12 (b) Maintain a fund balance attributable to grain dealers of at least $1,000,000 after January 1, 2006, but not more than $6,000,000 at any time.

AB717,39,14 (c) Maintain a fund balance attributable to grain warehouse keepers of at least $200,000 after January 1, 2006, but not more than $1,000,000 at any time.

AB717,39,16 (d) Maintain a fund balance attributable to milk contractors of at least $3,000,000 after January 1, 2006, but not more than $12,000,000 at any time.

AB717,39,18 (e) Maintain a fund balance attributable to vegetable contractors of at least $800,000 after January 1, 2006, but not more than $3,000,000 at any time.

AB717, s. 152 Section 152. 126.88 (2) of the statutes is created to read:

AB717,39,24 126.88 (2) (a) If the fund balance for a portion of the fund under sub. (1) (b) to (e) falls below the minimum amount required for that portion of the fund, the department shall by rule modify the assessment rates for the type of contractor that contributes to that portion of the fund so that the assessment rates are adequate to reach and maintain the minimum balance within a reasonable time.

AB717,40,10 (b) The department may use the procedure under s. 227.24 to promulgate a rule modifying an assessment under par. (a). In a rule promulgated under this paragraph, the department may not provide that the modification of an assessment takes effect before the beginning of the next license year. Notwithstanding s. 227.24 (1) (c) and (2), a rule promulgated under this paragraph may remain in effect for not more than 24 months. Notwithstanding s. 227.24 (1) (a) and (3), the department is not required to determine that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.

AB717,40,11 (End)