126.88 Modifying fund assessments.
126.90 Agricultural producer security council.
GENERAL
126.01
126.01
General definitions. In this chapter:
126.01(1)
(1) "Affiliate" means any of the following persons:
126.01(1)(a)
(a) An owner, major stockholder, partner, officer, director, member, employee, or agent of a contractor.
126.01(1)(b)
(b) A person owned, controlled, or operated by a person under
par. (a).
126.01(2)
(2) "Asset" means anything of value owned by a person.
126.01(3)
(3) "Audited financial statement" means a financial statement on which an independent certified public accountant licensed or certified under
ch. 442 has done all of the following:
126.01(3)(a)
(a) Stated that the financial statement presents fairly, in all material respects, the financial position of a contractor as of a specific date or for a specific period, according to one of the following:
126.01(3)(a)2.
2. The historical cost basis method of accounting, if the financial statement is a sole proprietor's personal financial statement and the financial statement is prepared on a historical cost basis.
126.01(3)(b)
(b) Conducted an audit according to generally accepted auditing standards.
126.01(4)
(4) "Balance sheet" means a statement of assets, liabilities, and equity on a specific date.
126.01(5)
(5) "Contractor," unless otherwise qualified, means any of the following:
126.01(6)
(6) "Current assets" means cash and other assets, including trade or investment items, that may be readily converted into cash in the ordinary course of business within one year after the date as of which the value of those assets is determined.
126.01(7)
(7) "Current liabilities" means those liabilities that are due within one year after the date as of which the value of those liabilities is determined.
126.01(8)
(8) "Department" means the department of agriculture, trade and consumer protection.
126.01(9)
(9) "Equity" means the value of assets less the value of liabilities.
126.01(10)
(10) "Equity statement" means a report of the change in equity from the beginning to the end of the accounting period covered by the report.
126.01(11)
(11) "Fund" means the agricultural producer security fund established under
s. 25.463.
126.01(12)
(12) "Generally accepted accounting principles" means the accounting standards adopted by the Financial Accounting Standards Board, except that for a business entity organized and operating outside the United States "generally accepted accounting principles" includes generally accepted foreign accounting standards that are substantially equivalent to standards adopted by the Financial Accounting Standards Board.
126.01(13)
(13) "Grain" means corn, wheat, soybeans, oats, barley, rye, buckwheat, sorghum, flax seed, milo, sunflower seed, and mixed grain, as defined in
7 CFR 810.801, except that "grain" does not include any of the following:
126.01(13)(a)
(a) Sweet corn or other canning crops for processing.
126.01(13)(b)
(b) Seed corn, wheat, soybeans, oats, barley, rye, buckwheat, sorghum, flax seed, milo, sunflower seed, or mixed grain used or intended for use solely for planting purposes.
126.01(13)(c)
(c) Corn, wheat, soybeans, oats, barley, rye, buckwheat, sorghum, flax seed, milo, sunflower seed, or mixed grain that has been rolled, cracked, roasted, or otherwise processed.
126.01(14)
(14) "Income statement" means a report of the financial results of business operations for a specific period.
126.01(15)
(15) "Individual" means a natural person.
126.01(16)
(16) "Interim financial statement" means a statement of financial condition prepared for a period shorter than a fiscal year.
126.01(18)
(18) "Person," notwithstanding
s. 990.01 (26), means an individual, corporation, cooperative, partnership, limited liability company, trust, state agency, as defined in
s. 20.001 (1), local governmental unit, as defined in
s. 66.0131 (1) (a), or other legal entity.
126.01(20)
(20) "Reviewed financial statement" means a contractor's financial statement, other than an audited financial statement, if all of the following apply:
126.01(20)(a)
(a) The contractor attests in writing, under oath, that the financial statement is complete and accurate.
126.01(20)(b)
(b) The financial statement is reviewed by an independent certified public accountant licensed or certified under
ch. 442.
126.01(22)
(22) "Sole proprietor" means a contractor who is an individual.
126.01(23)
(23) "Statement of cash flows" means a report of cash receipts and cash disbursements from operating, investing, and financing activities, including an explanation of changes in cash and cash equivalents for the accounting period covered by the report.
126.01(24)
(24) "Vegetable" means any vegetable that is grown or sold for use in food processing, whether or not the vegetable is actually processed as food. "Vegetable" includes green beans, kidney beans, lima beans, romano beans, wax beans, beets, cabbage, carrots, celery, cucumbers, onions, peas, potatoes, spinach, squash, and sweet corn, but does not include grain.
126.01 History
History: 2001 a. 16.
AGRICULTURAL PRODUCER
SECURITY FUND
126.05
126.05
Agricultural producer security fund. 126.05(1)
(1) The fund is a public trust and shall be administered to secure payments to producers. Moneys deposited into the fund may be used only for the purposes of this chapter.
126.05(2)
(2) The department shall deposit into the fund all fees, surcharges, assessments, reimbursements, and proceeds of surety bonds that the department collects under this chapter. The department shall keep a record by contractor and industry, of all deposits.
126.05 History
History: 2001 a. 16.
126.06(1)(1)
Department to acquire bonds. Using moneys appropriated under
s. 20.115 (1) (v), the department shall acquire and maintain all of the following surety bonds:
126.06(1)(a)
(a) A surety bond that takes effect on May 1, 2002, to secure payment under
s. 126.72 (2) of claims against contributing milk contractors, as defined in
s. 126.40 (1).
126.06(1)(b)
(b) A surety bond that takes effect on September 1, 2002, to secure payment under
s. 126.72 (2) of claims against contributing grain dealers, as defined in
s. 126.10 (3), and contributing grain warehouse keepers, as defined in
s. 126.25 (2).
126.06(1)(c)
(c) A surety bond that takes effect on February 1, 2002, to secure payment under
s. 126.72 (2) of claims against contributing vegetable contractors, as defined in
s. 126.55 (4).
126.06(2)
(2) Bond terms. The department shall ensure all of the following:
126.06(2)(a)
(a) That the amount of each bond under
sub. (1) is at least $5,000,000 but not more than $20,000,000.
126.06(2)(b)
(b) That the amount of each bond under
sub. (1) renews annually.
126.06(2)(c)
(c) That each bond under
sub. (1) is payable to the department for the benefit of the appropriate claimants under
sub. (1).
126.06(2)(d)
(d) That each bond under
sub. (1) is issued by a person who is authorized to operate a surety business in this state.
126.06(2)(dm)
(dm) That no surety issues more than one of the 3 bonds under
sub. (1).
126.06(2)(e)
(e) That no bond issued under
sub. (1) may be canceled or modified unless one of the following applies:
126.06(2)(e)1.
1. The department agrees to the cancellation or modification.
126.06(2)(e)2.
2. The department receives written notice from the issuer in person or by certified mail at least one year before the proposed cancellation or modification.
126.06(2)(f)
(f) That the issuer of each bond under
sub. (1) issues the bond in a form, and subject to any terms and conditions, that the department considers appropriate.
126.06(3)
(3) Bond procurement. The department shall procure the surety bonds under
sub. (1) according to the procedures provided in
subch. IV of ch. 16.
126.06 History
History: 2001 a. 16.
126.07(1)(1)
Department to acquire bond. Using moneys appropriated under
s. 20.115 (1) (v), the department shall acquire and maintain a surety bond, that takes effect on February 1, 2002, to secure payment under
s. 126.72 (3) of claims against contributing contractors, as defined in
s. 126.68 (1).
126.07(2)
(2) Bond terms. The department shall ensure all of the following:
126.07(2)(a)
(a) That the amount of the bond under
sub. (1) is at least $20,000,000 but not more than $40,000,000.
126.07(2)(b)
(b) That the amount of the bond under
sub. (1) renews annually.
126.07(2)(c)
(c) That the bond under
sub. (1) is payable to the department for the benefit of claimants described in
sub. (1).
126.07(2)(d)
(d) That the bond under
sub. (1) is jointly issued by at least 3 persons acting as cosureties on the bond and that each of the persons is authorized to operate a surety business in this state.
126.07(2)(e)
(e) That no issuer of the bond under
sub. (1) may cancel or modify the bond, or withdraw as a cosurety, unless one of the following applies:
126.07(2)(e)1.
1. The department agrees to the cancellation, modification, or withdrawal.
126.07(2)(e)2.
2. The department receives written notice from the issuer that is delivered in person or by certified mail and is received at least one year before the proposed cancellation, modification, or withdrawal.
126.07(2)(f)
(f) That the issuers of the bond under
sub. (1) issue the bond in a form, and subject to any terms and conditions, that the department considers appropriate.
126.07(3)
(3) Bond procurement. The department shall procure the surety bond under
sub. (1) according to the procedures provided in
subch. IV of ch. 16.
126.07 History
History: 2001 a. 16.
126.08
126.08
Start-up loan to fund; repayment. On January 1, 2002, $2,000,000 is transferred as a loan from the agrichemical management fund, to the agricultural producer security fund. The department shall repay this loan principal, plus interest compounded at 5% annually, from the agricultural producer security fund by July 1, 2006. The department shall transfer at least $250,000 from the agricultural producer security fund to the agrichemical management fund on July 1 of each year, beginning on July 1, 2003. The department may accelerate the loan repayment, at its discretion.
126.08 History
History: 2001 a. 16.
GRAIN DEALERS
126.10
126.10
Definitions. In this subchapter:
126.10(1)
(1) "Cash on delivery" means full cash payment for grain when the grain dealer takes custody or control of the grain.
