126.44(8)(b) (b) If a milk contractor has been in business for less than one year, the milk contractor may file an annual financial statement under sub. (1) or (2) consisting of a balance sheet and notes. A milk contractor may file a quarterly financial statement under sub. (3) consisting of a balance sheet and income statement.
126.44(8)(c) (c) A milk contractor filing a financial statement under this section shall include in the financial statement, or in an attachment to the financial statement, calculations of all of the following:
126.44(8)(c)1. 1. The milk contractor's current ratio, excluding any assets required to be excluded under sub. (9).
126.44(8)(c)2. 2. The milk contractor's debt to equity ratio, excluding any assets required to be excluded under sub. (9).
126.44(9) (9)Assets excluded. A milk contractor may not include any of the following assets in the calculations under sub. (8) (c), unless the department specifically approves their inclusion:
126.44(9)(a) (a) A nontrade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals, unless the note or account receivable is secured by a first priority security interest in real or personal property.
126.44(9)(b) (b) A note or account receivable from a parent organization, a subsidiary, or an affiliate other than an employee.
126.44(9)(c) (c) A note or account that has been receivable for more than one year, unless the milk contractor has established an equal offsetting reserve for uncollectible notes and accounts receivable.
126.44(10) (10)Entity covered. A person filing a financial statement under this section may not file, in lieu of that person's financial statement, the financial statement of the person's parent organization, subsidiary, predecessor, or successor.
126.44(11) (11)Department review. The department may analyze a financial statement submitted under this section and may reject a financial statement that fails to comply with this section.
126.44 History History: 2001 a. 16; 2003 a. 238.
126.45 126.45 Contributing milk contractors; disqualification.
126.45(1)(1)Required contributors.
126.45(1)(a)(a) Except as provided in sub. (3), a licensed milk contractor shall pay fund assessments under s. 126.46 if the milk contractor does not file annual and quarterly financial statements under s. 126.44.
126.45(1)(b) (b) Except as provided in sub. (3), a licensed milk contractor shall pay fund assessments under s. 126.46 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. The milk contractor shall continue to pay fund assessments until the milk contractor files 2 consecutive annual financial statements under s. 126.44 that show a current ratio of at least 1.25 to 1.0, positive equity, and a debt to equity ratio of not more than 2.0 to 1.0.
126.45(2) (2)Voluntary contributors. Except as provided in sub. (3), a licensed milk contractor who is not required to pay fund assessments under s. 126.46 may elect to do so.
126.45(3) (3)Disqualified contractors.
126.45(3)(a)(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.
126.45(3)(b) (b) A milk contractor is disqualified from the fund if the department denies, suspends, or revokes the milk contractor's license.
126.45(3)(c) (c) The department may, by written notice, disqualify a milk contractor for any of the following reasons:
126.45(3)(c)1. 1. Failure to pay fund assessments under s. 126.46 when due.
126.45(3)(c)2. 2. Failure to file a financial statement under s. 126.44 when due.
126.45(3)(c)3. 3. Failure to reimburse the department, within 60 days after the department issues a reimbursement demand under s. 126.73 (1), for the full amount that the department pays to claimants under s. 126.72 (1) or under s. 126.72 (2) with the proceeds of a loan under s. 126.06 (1) (b) because of that milk contractor's default.
126.45(3)(c)4. 4. Failure to reimburse a bond surety, within 60 days after the bond surety issues a reimbursement demand under s. 126.73 (2), for the full amount that the surety pays to the department under s. 126.72 (2) for the benefit of claimants affected by that milk contractor's default.
126.45(4) (4)Effect of disqualification.
126.45(4)(a)(a) A milk contractor disqualified under sub. (3) (c) 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.
126.45(4)(b) (b) The department may not return, to a disqualified milk contractor, any fund assessments that the milk contractor paid as a contributing milk contractor.
126.45(4)(c) (c) A disqualified milk contractor remains liable for any unpaid fund installment under s. 126.46 that became due while the milk contractor was a contributing milk contractor. A disqualified milk contractor is not liable for any fund installment that becomes due after the milk contractor is disqualified under sub. (3).
126.45 History History: 2001 a. 16; 2003 a. 38.
126.46 126.46 Contributing milk contractors; fund assessments.
126.46(1)(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 the department by rule specifies a different assessment:
126.46(1)(a) (a) The milk contractor's current ratio assessment. The current ratio assessment for a license year equals the milk contractor's current ratio assessment rate under sub. (2) multiplied by the annual milk payroll obligations reported under s. 126.41 (6) (a) in the milk contractor's license application for that license year.
126.46(1)(b) (b) The milk contractor's debt to equity ratio assessment. The debt to equity ratio assessment for a license year equals the milk contractor's debt to equity ratio assessment rate under sub. (4) multiplied by the annual milk payroll obligations reported under s. 126.41 (6) (a) in the milk contractor's license application for that license year.
126.46(2) (2)Current ratio assessment rate. A milk contractor's current ratio assessment rate is calculated, at the beginning of the license year, as follows:
126.46(2)(a) (a) If the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows a current ratio of at least 1.25 to 1.0, the milk contractor's current ratio assessment rate equals the greater of zero or the current ratio assessment factor in sub. (3) (a) multiplied by the following amount:
126.46(2)(a)1. 1. Subtract 3 from the current ratio.
126.46(2)(a)2. 2. Divide the amount determined under subd. 1. by 6.
126.46(2)(a)3. 3. Multiply the amount determined under subd. 2. by negative one.
126.46(2)(a)4. 4. Raise the amount determined under subd. 3. to the 3rd power.
126.46(2)(a)5. 5. Divide 0.55 by the current ratio.
126.46(2)(a)6. 6. Raise the amount determined under subd. 5. to the 7th power.
126.46(2)(a)7. 7. Add the amount determined under subd. 4. to the amount determined under subd. 6.
126.46(2)(a)8. 8. Add 0.075 to the amount determined under subd. 7.
126.46(2)(b) (b) If the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows a current ratio of less than 1.25 to 1.0, but greater than 1.05 to 1.0, the milk contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by the following amount:
126.46(2)(b)1. 1. Subtract 3 from the current ratio.
126.46(2)(b)2. 2. Divide the amount determined under subd. 1. by 6.
126.46(2)(b)3. 3. Multiply the amount determined under subd. 2. by negative one.
126.46(2)(b)4. 4. Raise the amount determined under subd. 3. to the 3rd power.
126.46(2)(b)5. 5. Divide 0.55 by the current ratio.
126.46(2)(b)6. 6. Raise the amount determined under subd. 5. to the 7th power.
126.46(2)(b)7. 7. Add the amount determined under subd. 4. to the amount determined under subd. 6.
126.46(2)(b)8. 8. Add 0.075 to the amount determined under subd. 7.
126.46(2)(c) (c) Except as provided in par. (e), if the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows a current ratio of less than or equal to 1.05 to 1.0, the milk contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 0.1201478.
126.46(2)(d) (d) Except as provided in par. (e), if the milk contractor has not filed an annual financial statement under s. 126.44, the milk contractor's current ratio assessment rate equals the current ratio assessment factor in sub. (3) (b) multiplied by 0.103005.
126.46(2)(e) (e) If the milk contractor procures producer milk in this state solely as a producer agent and the milk contractor has not filed an annual financial statement under s. 126.44 or has filed an annual financial statement that shows a current ratio of less than or equal to 1.05 to 1.0, the milk contractor's current ratio assessment rate is 0.00025, except that for the milk contractor's 5th or higher consecutive full license year of participation in the fund the milk contractor's current ratio assessment rate is 0.000175.
126.46(3) (3)Current ratio assessment factor.
126.46(3)(a)(a) A milk contractor's current ratio assessment factor under sub. (2) (a) is 0.001, except as follows:
126.46(3)(a)1. 1. For the milk contractor's 3rd consecutive full license year as a contributing milk contractor, the milk contractor's current ratio assessment factor is 0.0007.
126.46(3)(a)2. 2. For the milk contractor's 4th consecutive full license year as a contributing milk contractor, the milk contractor's current ratio assessment factor is 0.0003.
126.46(3)(a)3. 3. For the milk contractor's 5th or higher consecutive full license year as a contributing milk contractor, the milk contractor's current ratio assessment factor is zero.
126.46(3)(b) (b) A milk contractor's current ratio assessment factor under sub. (2) (b) to (d) is 0.0015, except that, for the milk contractor's 5th or higher consecutive full license year of participation in the fund, the milk contractor's current ratio assessment factor is 0.000675.
126.46(4) (4)Debt to equity ratio assessment rate. A milk contractor's debt to equity ratio assessment rate is calculated, at the beginning of the license year, as follows:
126.46(4)(a) (a) If the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows positive equity and a debt to equity ratio of not more than 2.0 to 1.0, the milk contractor's debt to equity ratio assessment rate equals the greater of zero or the debt to equity ratio assessment factor in sub. (5) (a) multiplied by the following amount:
126.46(4)(a)1. 1. Subtract 2 from the debt to equity ratio.
126.46(4)(a)2. 2. Divide the amount determined under subd. 1. by 3.
126.46(4)(a)3. 3. Raise the amount determined under subd. 2. to the 9th power.
126.46(4)(a)4. 4. Divide the debt to equity ratio by 3.25.
126.46(4)(a)5. 5. Raise the amount determined under subd. 4. to the 5th power.
126.46(4)(a)6. 6. Add the amount determined under subd. 3. to the amount determined under subd. 5.
126.46(4)(a)7. 7. Add 0.025 to the amount determined under subd. 6.
126.46(4)(b) (b) If the milk contractor files an annual financial statement under s. 126.44 and that financial statement shows a debt to equity ratio of greater than 2.0 to 1.0 but less than 3.1 to 1.0, the milk contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by the following amount:
126.46(4)(b)1. 1. Subtract 2 from the debt to equity ratio.
126.46(4)(b)2. 2. Divide the amount determined under subd. 1. by 3.
126.46(4)(b)3. 3. Raise the amount determined under subd. 2. to the 9th power.
126.46(4)(b)4. 4. Divide the debt to equity ratio by 3.25.
126.46(4)(b)5. 5. Raise the amount determined under subd. 4. to the 5th power.
126.46(4)(b)6. 6. Add the amount determined under subd. 3. to the amount determined under subd. 5.
126.46(4)(b)7. 7. Add 0.025 to the amount determined under subd. 6.
126.46(4)(c) (c) Except as provided in par. (e), if the milk contractor has filed an annual financial statement under s. 126.44 and that financial statement shows negative equity or a debt to equity ratio of at least 3.1 to 1.0, the milk contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 0.8146917.
126.46(4)(d) (d) Except as provided in par. (e), if the milk contractor has not filed an annual financial statement under s. 126.44, the milk contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 0.11325375.
126.46(4)(e) (e) If the milk contractor procures producer milk in this state solely as a producer agent and the milk contractor has not filed an annual financial statement under s. 126.44 or has filed an annual financial statement that shows negative equity or a debt to equity ratio of at least 3.1 to 1.0, the milk contractor's debt to equity ratio assessment rate is 0.00025, except that for the milk contractor's 5th or higher consecutive full license year of participation in the fund the milk contractor's debt to equity ratio assessment rate is 0.000175.
126.46(5) (5)Debt to equity ratio assessment factor.
126.46(5)(a)(a) A milk contractor's debt to equity ratio assessment factor under sub. (4) (a) is 0.0015, except as follows:
126.46(5)(a)1. 1. For the milk contractor's 3rd consecutive full license year as a contributing milk contractor, the milk contractor's current ratio assessment factor is 0.001.
126.46(5)(a)2. 2. For the milk contractor's 4th consecutive full license year as a contributing milk contractor, the milk contractor's current ratio assessment factor is 0.0005.
126.46(5)(a)3. 3. For the milk contractor's 5th or higher consecutive full license year as a contributing milk contractor, the milk contractor's current ratio assessment factor is zero.
126.46(5)(b) (b) A milk contractor's debt to equity ratio assessment factor under sub. (4) (b) to (d) is 0.00225, except that, for the milk contractor's 5th or higher consecutive full license year as a contributing milk contractor, the milk contractor's debt to equity ratio assessment factor is 0.001.
126.46(5m) (5m)Reduced assessment for certain milk contractors filing security. If a milk contractor files security under s. 126.47 (1) (b), the milk contractor's assessment is the amount determined under sub. (1) reduced by an amount determined as follows:
126.46(5m)(a) (a) 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.
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This is an archival version of the Wis. Stats. database for 2005. See Are the Statutes on this Website Official?