126.71
126.71
Paying default claims. 126.71(1)
(1)
Claims against contributing contractor. Except as provided in
sub. (2) or
(3), the department shall pay from the appropriate sources under
s. 126.72 the following default claim amounts:
126.71(1)(a)
(a) Except as provided in
par. (d) or
(e), 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:
126.71(1)(a)2.
2. Seventy-five percent of any amount allowed in excess of $60,000.
126.71(1)(b)
(b) For each default claim allowed under
s. 126.70 against a grain warehouse keeper who was a contributing contractor when the default occurred, 100% of the first $100,000 allowed.
126.71(1)(c)
(c) For each default claim allowed under
s. 126.70 against a vegetable contractor who was a contributing contractor when the default occurred:
126.71(1)(c)4.
4. Seventy-five percent of any amount allowed in excess of $120,000.
126.71(1)(d)
(d) For each default claim allowed under
s. 126.70 against a qualified producer agent who, at the time of the default, was a contributing contractor and maintained security under
s. 126.47 (3) (c), if the default occurs after April 30, 2002, and before May 1, 2004, 15% of the amount allowed.
126.71(1)(e)
(e) For each default claim allowed under
s. 126.70 against a qualified producer agent who, at the time of the default, was a contributing contractor and maintained security under
s. 126.47 (3) (c), if the default occurs after April 30, 2004, and before May 1, 2007, 20% of the amount allowed.
126.71(1m)
(1m) When default occurs. For the purposes of this chapter, a default occurs on the date on which payment or delivery becomes overdue.
126.71(2)
(2) Claims against contractor who has filed security. If the department allows default claims under
s. 126.70 against a contractor who has security on file with the department, the department shall convert that security and use the proceeds as follows:
126.71(2)(a)
(a) If the contractor was not a contributing contractor when the default occurred, the department shall use the security proceeds to pay the full amount of the allowed claims, except that, if the security is not adequate to pay the full amount of the allowed claims, the department shall pay claimants on a prorated basis in proportion to their allowed claims.
126.71(2)(b)
(b) If the contractor was a contributing contractor when the default occurred, the department shall use the security proceeds to reimburse the sources under
s. 126.72 from which the department makes any claim payment under
sub. (1). If the security amount exceeds the amount payable under
sub. (1) from the sources under
s. 126.72, the department shall use the remaining security proceeds to pay the balance of the allowed claims. If the security amount is not adequate to pay the full remaining balance, the department shall pay claimants on a prorated basis in proportion to their allowed claims.
126.71(2)(c)
(c) Notwithstanding
par. (b), if the contractor was a contributing contractor when the default occurred, the department may, at its discretion, pay claims directly from security proceeds rather than from a fund source under
s. 126.72. If the department acts under this paragraph, the department shall first pay claims in the amounts provided in
sub. (1). If the security amount exceeds the amount payable under
sub. (1) from the sources under
s. 126.72, the department shall use the remaining security proceeds to pay the balance of the allowed claims. If the security amount is not adequate to pay the full remaining balance, the department shall pay claimants on a prorated basis in proportion to their allowed claims.
126.71(3)(a)(a) The department may not pay any portion of the following from any source identified in
s. 126.72:
126.71(3)(a)1.
1. A default claim related to a default by a grain dealer or grain warehouse keeper that occurs before September 1, 2002.
126.71(3)(a)2.
2. A default claim related to a default by a milk contractor that occurs before May 1, 2002.
126.71(3)(a)3.
3. A default claim related to a default by a vegetable contractor that occurs before February 1, 2002.
126.71(3)(a)4.
4. A default claim allowed against a contractor who was not a contributing contractor when the default occurred.
126.71(3)(b)
(b) The department may not pay any default claim under this chapter, except as provided in
sub. (1) or
(2).
126.71(3)(c)
(c) If the total amount of default claims exceeds the amount available under
s. 126.72, the department shall prorate the available amount among the eligible claimants in proportion to the amount of their allowed claims.
126.71(4)
(4) Effect of payment. A claimant who accepts payment under
sub. (1) or
(2) releases his or her claim against the contractor to the extent of the payment. A payment under
sub. (1) or
(2) does not prevent a claimant from recovering the balance of an allowed claim directly from the contractor.
126.71 History
History: 2001 a. 16.
126.72
126.72
Claims against contributing contractor; payment sources. 126.72(1)(1)
Producer security fund. From the appropriation under
s. 20.115 (1) (w), the department shall make payments authorized under
s. 126.71 (1), up to the deductible amount in
sub. (4).
126.72(2)
(2) Industry bond proceeds. The department shall make a demand against the appropriate industry bond under
s. 126.06 and shall use the proceeds of that bond to make payments authorized under
s. 126.71 (1), to the extent that those payments exceed the deductible amount in
sub. (4).
126.72(3)
(3) Blanket bond proceeds. The department shall make a demand against the blanket bond under
s. 126.07 and shall use the bond proceeds to pay any remaining amounts authorized under
s. 126.71 (1) after the department makes payments under
subs. (1) and
(2).
126.72(4)
(4) Deductible amount. The deductible amount, for purposes of
subs. (1) and
(2), is as follows:
126.72(4)(a)
(a) For default claims against a grain dealer or grain warehouse keeper who was a contributing contractor when the default occurred:
126.72(4)(a)1.
1. If the department allows the claims on or after September 1, 2002, but before September 1, 2004, $500,000.
126.72(4)(a)2.
2. If the department allows the claims on or after September 1, 2004, but before September 1, 2006, $750,000.
126.72(4)(a)3.
3. If the department allows the claims on or after September 1, 2006, $1,000,000.
126.72(4)(b)
(b) For default claims against a milk contractor who was a contributing contractor when the default occurred:
126.72(4)(b)1.
1. If the department allows the claims on or after May 1, 2002, but before May 1, 2004, $1,000,000.
126.72(4)(b)2.
2. If the department allows the claims on or after May 1, 2004, but before May 1, 2006, $1,500,000.
126.72(4)(b)3.
3. If the department allows the claims on or after May 1, 2006, $2,000,000.
126.72(4)(c)
(c) For claims against a vegetable contractor who was a contributing contractor when the default occurred:
126.72(4)(c)1.
1. If the department allows the claims on or after February 1, 2002, but before February 1, 2004, $500,000.
126.72(4)(c)2.
2. If the department allows the claims on or after February 1, 2004, but before February 1, 2006, $750,000.
126.72(4)(c)3.
3. If the department allows the claims on or after February 1, 2006, $1,000,000.
126.72 History
History: 2001 a. 16.
126.73
126.73
Reimbursing payments. 126.73(1)
(1)
Payments from the fund. The department may demand and collect, from a contractor, any claim amounts that the department pays under
s. 126.72 (1) because of the contractor's default.
126.73(2)
(2) Bond payments. A bond surety may demand and collect, from a contractor, any claim amounts that the bond surety pays to the department under
s. 126.72 (2) or
(3) because of the contractor's default. The bond surety shall provide the department with a copy of each demand under this subsection.
126.73 History
History: 2001 a. 16.
ADMINISTRATION AND ENFORCEMENT
126.78
126.78
Definitions. In this subchapter:
126.78 History
History: 2001 a. 16.
126.80
126.80
Department authority; general. The department shall administer this chapter.
126.80 History
History: 2001 a. 16.
126.81
126.81
Rule-making. The department may promulgate rules to do any of the following:
126.81(1)
(1) Interpret and implement this chapter.
126.81(4)
(4) Require a contractor to notify producers and producer agents of the contractor's license, security, or fund contribution status under this chapter.
126.81 History
History: 2001 a. 16.
126.82
126.82
Investigations. The department may conduct investigations that it considers necessary for the administration of this chapter, including investigations to determine any of the following:
126.82(1)
(1) Whether a contractor complies with this chapter.
126.82(2)
(2) Whether a contractor is able to honor contract obligations when due.
126.82(3)
(3) Whether a contractor has failed to honor contract obligations when due.
126.82(4)
(4) Whether a grain warehouse keeper has sufficient grain on hand to meet the grain warehouse keeper's obligations to depositors.
126.82(5)
(5) The nature and amount of a contractor's storage obligations or other contract obligations.
126.82 History
History: 2001 a. 16.
126.83
126.83
Information. The department may require a contractor to provide information that is relevant to the administration and enforcement of this chapter.
126.83 History
History: 2001 a. 16.
126.84
126.84
Records; confidentiality. 126.84(1)
(1)
Public records exemption. The following records obtained by the department under this chapter are not open to public inspection under
s. 19.35:
126.84(1)(b)
(b) A contractor's purchase, storage, or procurement records.
126.84(2)
(2) Use of records in court or administrative proceedings. Notwithstanding
sub. (1), the department may introduce any information obtained under this chapter in a court proceeding or administrative contested case, subject to any protective order that the court or administrative tribunal determines to be appropriate.
126.84 History
History: 2001 a. 16.
126.85
126.85
Remedial orders. 126.85(1)(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. 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. Except as provided in
sub. (2), the department shall give the contractor notice and an opportunity for hearing before the department issues an order.
126.85(2)
(2) Summary order. The department may issue an order under
sub. (1) without prior notice or hearing if the department finds that the order 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 the following:
126.85(2)(a)
(a) A contractor fails to pay producers according to this chapter or according to the contractor's contracts with producers.
