AB698,57 25Section 57. 126.47 (5m) (title) of the statutes is created to read:
AB698,16,1
1126.47 (5m) (title) Monthly reports.
AB698,58 2Section 58. 126.47 (5m) (a) of the statutes is created to read:
AB698,16,83 126.47 (5m) (a) The milk contractor's total unpaid obligations at the end of the
4previous month for producer milk procured in this state under a deferred payment
5contract, excluding any unpaid obligation under a deferred payment contract, for
6milk procured in this state, with a milk producer or producer agent that has, under
7s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the
8milk contractor.
AB698,59 9Section 59. 126.47 (5m) (b) (intro.) of the statutes is created to read:
AB698,16,1010 126.47 (5m) (b) (intro.) Either of the following:
AB698,60 11Section 60. 126.47 (7) (a) (intro.) of the statutes is amended to read:
AB698,16,1412 126.47 (7) (a) (intro.) The department may release security filed under sub. (1)
13(a), except for any amount of security that the milk contractor is required to file under
14sub. (1) (ae) or (b),
if any of the following applies:
AB698,61 15Section 61. 126.47 (7) (ae) of the statutes is created to read:
AB698,16,1816 126.47 (7) (ae) The department may release security filed under sub. (1) (ae),
17except for any amount of security that the milk contractor is required to file under
18sub. (1) (a) or (b), if any of the following applies:
AB698,16,2019 1. The milk contractor has not had any deferred payment contract obligations
20since the beginning of the milk contractor's last completed fiscal year.
AB698,16,2321 2. The milk contractor files 2 consecutive annual financial statements under
22s. 126.44 showing that the milk contractor meets the applicable equity requirement
23and debt to equity ratio under sub. (1) (ae).
AB698,62 24Section 62. 126.47 (7) (am) of the statutes is amended to read:
AB698,17,6
1126.47 (7) (am) The department may release security filed under sub. (1) (b),
2except for any amount of security that the milk contractor is required to file because
3sub. (1) (a) or (ae) applies to the milk contractor, if the milk contractor files 2
4consecutive annual financial statements under s. 126.44 showing that the milk
5contractor no longer has negative equity, a current ratio of less than 1.25 to 1.0, or
6a debt to equity ratio of more than 2.0 to 1.0.
AB698,63 7Section 63. 126.48 (1) of the statutes is amended to read:
AB698,17,148 126.48 (1) First monthly payment. By Except as provided under the terms of
9a deferred payment contract that satisfies the requirements under s. 126.485, by
the
104th day of each month, a milk contractor shall pay for producer milk received during
11the first 15 days of the preceding month. The milk contractor shall base the payment
12on an estimated price that is at least 80 percent of the class III price published by the
13regional federal milk market administrator for the month preceding the month in
14which the milk is received, or 80 percent of the contract price, whichever is greater.
AB698,64 15Section 64. 126.48 (2) of the statutes is amended to read:
AB698,17,1916 126.48 (2) Second monthly payment. By Except as provided under the terms
17of a deferred payment contract that satisfies the requirements under s. 126.485, by

18the 19th day of each month, a milk contractor shall pay the balance due for producer
19milk received during the preceding month.
AB698,65 20Section 65. 126.48 (3) of the statutes is renumbered 126.487, and 126.487
21(intro.), as renumbered, is amended to read:
AB698,18,2 22126.487 Payment explanation. (intro.) The department may, by rule,
23require a milk contractor to provide a milk producer or producer agent with a written
24explanation of each payment under this section s. 126.48 or of each deferred payment

1under s. 126.485
. The department may specify the content of the explanation,
2including information related to any of the following:
AB698,66 3Section 66. 126.485 of the statutes is created to read:
AB698,18,8 4126.485 Milk contractors; deferred payment contracts. (1) Contract in
5writing.
A milk contractor may not procure milk from any milk producer or producer
6agent under a deferred payment contract before the contract is reduced to writing
7and signed by the parties. The milk contractor shall provide a copy of the signed
8contract to the other party.
AB698,18,10 9(2) Contents of contract. A milk contractor may not enter into a deferred
10payment contract unless the deferred payment contract includes all of the following:
AB698,18,1111 (a) A unique contract identification number.
AB698,18,1312 (b) The specific payments required under s. 126.48 (1) or (2), or portion thereof,
13that are deferred under the contract.
AB698,18,1514 (c) The date by which the milk contractor agrees to make full payment for the
15milk.
AB698,18,1616 (d) The milk contractor's permanent business location.
AB698,18,2117 (e) A statement in clear and conspicuous print immediately above the contract
18signature line stating: “The milk contractor (buyer) becomes the owner of any milk
19that the producer or producer agent (seller) delivers to the milk contractor under this
20contract. The producer or producer agent relinquishes ownership and control of the
21milk, and may become an unsecured creditor pending payment.”
AB698,18,2522 (f) A statement that the milk contractor deducts the deferred payment contract
23assessment established by the department by rule under s. 126.46 (1) from the
24amount paid to a milk producer or producer agent under a deferred payment
25contract.
AB698,19,1
1(g) Other information required under this section by the department.
AB698,19,3 2(3) Rule making. The department may promulgate rules to modify the
3requirements for the contents of deferred payment contracts under sub. (2).
AB698,19,7 4(4) Payment due dates. (a) The due date by which a milk contractor agrees to
5make full payment for milk under a deferred payment contract may not be more than
6120 days after the date on which the milk contractor's payments would have been due
7under s. 126.48 (2).
AB698,19,108 (b) A milk contractor shall make full payment under a deferred payment
9contract by the due date specified in the contract under sub. (2) (c), or if the parties
10agree by another date that satisfies par. (a).
AB698,19,17 11(5) Deferred payment contract assessment. From the amount that a milk
12contractor pays to a milk producer or producer agent under a deferred payment
13contract, the milk contractor shall deduct a deferred payment contract assessment.
14The assessment shall equal the total amount owed under the contract before the
15assessment is deducted, multiplied by the deferred payment assessment rate that
16applies under s. 126.46 (1) when the contract is made. The milk contractor shall
17disclose the assessment amount.
AB698,67 18Section 67. 126.56 (2) (c) of the statutes is created to read:
AB698,19,2019 126.56 (2) (c) A vegetable contractor who spends less than $15,000 per license
20year to procure processing vegetables from vegetable producers and producer agents.
AB698,68 21Section 68. 126.56 (3) (f) of the statutes is repealed.
AB698,69 22Section 69. 126.56 (9) (intro.) of the statutes is amended to read:
AB698,20,223 126.56 (9) Sworn and notarized Applicant statement. (intro.) As part of a
24license application under sub. (3), an applicant shall provide a sworn and notarized

1statement, signed by the applicant or an officer of the applicant, that reports all of
2the following:
AB698,70 3Section 70. 126.58 (4m) of the statutes is amended to read:
AB698,20,94 126.58 (4m) Interim financial statement. The department may, at any time,
5require a vegetable contractor licensed under s. 126.56 (1) to file an interim financial
6statement with the department. The vegetable contractor shall provide, with the
7interim financial statement, the vegetable contractor's sworn and notarized
8statement that the financial statement is correct.
An interim financial statement
9need not be a reviewed or audited financial statement.
AB698,71 10Section 71. 126.70 (4) (gm) of the statutes is created to read:
AB698,20,1311 126.70 (4) (gm) That the claim relates to a payment that first became due,
12under a deferred payment contract for milk, after the payment due date under s.
13126.485 (4) (b).
AB698,72 14Section 72. 126.70 (4) (L) of the statutes is created to read:
AB698,20,2015 126.70 (4) (L) That the claimant was eligible, at any time before filing a default
16claim under sub. (2), to file a claim against the defaulting contractor in a federal
17bankruptcy proceeding under 11 USC 101 et seq. initiated by a party other than the
18claimant, or a proceeding under ch. 128 initiated by a party other than the claimant,
19or both, and did not file a claim against the defaulting contractor in each proceeding
20in which the claimant was eligible to file a claim.
AB698,73 21Section 73. 126.73 (4) of the statutes is created to read:
AB698,20,2522 126.73 (4) Subrogation. The department is subrogated to the rights of a
23claimant who obtains a payment under s. 126.72 (1) or (2) in an amount equal to the
24payment, against the defaulting contractor and against any party that would
25otherwise be liable to the claimant for the amount of the default.
AB698,74
1Section 74. 126.88 (1) (b) of the statutes is amended to read:
AB698,21,42 126.88 (1) (b) Maintain a combined fund balance attributable to grain dealers
3and grain warehouse keepers of at least $1,000,000 $1,200,000, but not more than
4$6,000,000 $7,000,000.
AB698,75 5Section 75. 126.88 (1) (c) of the statutes is repealed.
AB698,76 6Section 76. Nonstatutory provisions.
AB698,21,177 (1) Emergency rules. Using the procedure under section 227.24 of the statutes,
8the department of agriculture, trade and consumer protection shall promulgate the
9rules required under section 126.46 (1) of the statutes for the period before the
10effective date of the permanent rules promulgated under section 126.46 (1) of the
11statutes. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, a rule
12promulgated under this subsection may remain in effect for not more than 24
13months. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the
14department is not required to provide evidence that promulgating a rule under this
15subsection as an emergency rule is necessary for the preservation of the public peace,
16health, safety, or welfare and is not required to provide a finding of emergency for a
17rule promulgated under this subsection.
AB698,77 18Section 77. Initial applicability.
AB698,21,2019 (1) Disallowed claims. The treatment of section 126.70 (4) (L) of the statutes
20first applies to a claim that is filed on the effective date of this subsection.
AB698,78 21Section 78. Effective dates. This act takes effect on the 30th day after the
22day of publication, except as follows:
AB698,21,2423 (1) Disallowed claims. The treatment of section 126.70 (4) (L) of the statutes
24takes effect on the 60th day after the effective date of this subsection.
AB698,21,2525 (End)
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