126.60(7)(a)
(a) The amount of the vegetable contractor's annual fund assessment under this section.
126.60(7)(b)
(b) The amount of each required quarterly installment under
sub. (6) and the date by which the vegetable contractor must pay each installment.
126.60(7)(c)
(c) The penalty that applies under
sub. (6) (d) if the vegetable contractor fails to pay any quarterly installment when due.
126.60 History
History: 2001 a. 16;
2003 a. 38,
326.
126.61
126.61
Vegetable contractors; security. 126.61(1)(a)(a) Except as provided in
par. (c), a vegetable contractor shall file security with the department, and maintain that security until the department releases it under
sub. (7), if all of the following apply when the department first licenses the vegetable contractor under
s. 126.56 (1):
126.61(1)(a)2.
2. The vegetable contractor files a financial statement under
s. 126.58 (1) and that financial statement shows negative equity.
126.61(1)(b)
(b) Except as provided in
par. (c), a vegetable contractor shall file security with the department to cover the full amount of the unpaid deferred contract obligations last reported under
s. 126.56 (9) (e) or
(12) (b), and maintain that security until it is released under
sub. (7), unless the vegetable contractor files an annual financial statement under
s. 126.58 and that financial statement shows positive equity, a current ratio of at least 1.25 to 1.0, and a debt to equity ratio of not more than 4.0 to 1.0.
126.61(1)(bm)1.1. In this paragraph, "estimated default exposure" means the sum of the following:
126.61(1)(bm)2.
2. Except as provided in
par. (c), a vegetable contractor shall file security with the department, and maintain that security until the department releases it under
sub. (7) (bm), if the vegetable contractor files an annual financial statement under
s. 126.58 (1) that shows negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0 and the vegetable contractor's estimated default exposure is greater than the following amount:
126.61(1)(bm)2.a.
a. For the license year beginning on February 1, 2003, $18,000,000.
126.61(1)(bm)2.b.
b. For the license year beginning on February 1, 2004, $19,000,000.
126.61(1)(bm)2.c.
c. For a license year that begins on February 1, 2005, or later, $20,000,000.
126.61(1)(c)
(c) A vegetable contractor is not required to file security under this subsection if any of the following applies:
126.61(1)(c)1.
1. The vegetable contractor pays cash on delivery under all vegetable procurement contracts.
126.61(1)(c)2.
2. The vegetable contractor is a producer-owned cooperative or unincorporated cooperative association that procures processing vegetables only from its producer members.
126.61(1)(c)3.
3. The vegetable contractor is a processing potato buyer who has elected not to participate in the fund in accordance with
s. 126.595 (1).
126.61(2)
(2) Security continued. A vegetable contractor who filed security under s.
100.03, 1999 stats., before February 1, 2002, shall maintain that security until the department releases it under
sub. (7).
126.61(3)(a)(a) Except as provided in
par. (b), a vegetable contractor who is required to file or maintain security under this section shall, at all times, maintain security that is at least equal to the sum of the following:
126.61(3)(a)1.
1. Seventy-five percent of the amount last reported under
s. 126.56 (9) (b) or
(12) (a), except that this amount is not required of a contributing vegetable contractor.
126.61(3)(b)
(b) A vegetable contractor who is only required to file or maintain security under
sub. (1) (bm) shall at all times maintain security equal to the vegetable contractor's estimated default exposure, as defined in
sub. (1) (bm) 1., less the following amount:
126.61(3)(b)1.
1. For the license year beginning on February 1, 2003, $18,000,000.
126.61(3)(b)2.
2. For the license year beginning on February 1, 2004, $19,000,000.
126.61(3)(b)3.
3. For a license year that begins on February 1, 2005, or later, $20,000,000.
126.61(4)
(4) Form of security. The department shall review, and determine whether to approve, security filed under this section. The department may approve only the following types of security:
126.61(4)(b)
(b) A commercial surety bond if all of the following apply:
126.61(4)(b)1.
1. The surety bond is made payable to the department for the benefit of vegetable producers and producer agents.
126.61(4)(b)2.
2. The surety bond is issued by a person authorized to operate a surety business in this state.
126.61(4)(b)3.
3. The surety bond is issued as a continuous term bond that may be canceled only with the department's written agreement, or upon 90 days' prior written notice served on the department in person or by certified mail.
126.61(4)(b)4.
4. The surety bond is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.61(4)(c)
(c) A certificate of deposit or money market certificate, if all of the following apply:
126.61(4)(c)1.
1. The certificate is issued or endorsed to the department for the benefit of vegetable producers and producer agents.
126.61(4)(c)2.
2. The certificate may not be canceled or redeemed without the department's written permission.
126.61(4)(c)3.
3. No person may transfer or withdraw funds represented by the certificate without the department's written permission.
126.61(4)(c)4.
4. The certificate renews automatically without any action by the department.
126.61(4)(c)5.
5. The certificate is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.61(4)(d)
(d) An irrevocable bank letter of credit if all of the following apply:
126.61(4)(d)1.
1. The letter of credit is payable to the department for the benefit of vegetable producers and producer agents.
126.61(4)(d)3.
3. The letter of credit is issued for an initial period of at least one year.
126.61(4)(d)4.
4. The letter of credit renews automatically unless, at least 90 days before the scheduled renewal date, the issuing bank gives the department written notice, in person or by certified mail, that the letter of credit will not be renewed.
126.61(4)(d)5.
5. The letter of credit is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.61(4)(e)
(e) Security filed with the department under s.
100.03, 1999 stats., before February 1, 2002, except that on January 1, 2003, the department shall withdraw its approval of any security that is not approvable under
pars. (a) to
(d).
126.61(5)
(5) Department custody of security. The department shall hold, in its custody, all security filed and maintained under this section. The department shall hold the security for the benefit of vegetable producers and producer agents.
126.61(6)(a)(a) The department may, at any time, demand additional security from a vegetable contractor if any of the following applies:
126.61(6)(a)1.
1. The vegetable contractor's existing security falls below the amount required under
sub. (3) for any reason, including a depreciation in the value of the security filed with the department, increased obligations to vegetable producers or producer agents, or the cancellation of any security filed with the department.
126.61(6)(a)2.
2. The vegetable contractor fails to provide required information that is relevant to a determination of security requirements.
126.61(6)(b)
(b) The department shall issue a demand under
par. (a) in writing. The department shall indicate why additional security is required, the amount of security required, and the deadline date for filing security. The department may not specify a deadline for filing security that is more than 30 days after the date on which the department issues its demand for security.
126.61(6)(c)
(c) A vegetable contractor may request a hearing, under
ch. 227, on a security demand under
par. (b). A request for hearing does not automatically stay a security demand.
126.61(6)(d)
(d) If a vegetable contractor fails to comply with the department's security demand under this subsection, the vegetable contractor shall give written notice of that fact to all vegetable producers and producer agents from whom the vegetable contractor procures processing vegetables. If the vegetable contractor fails to give accurate notice under this paragraph within 5 days after the security filing deadline under
par. (b) has passed, the department shall promptly notify vegetable producers and producer agents by publishing a class 3 notice under
ch. 985. The department may also give individual notice to vegetable producers or producer agents of whom the department is aware.
126.61(6)(e)
(e) If a vegetable contractor fails to comply with the department's demand for security under this subsection, the department may do any of the following:
126.61(6)(e)1.
1. Issue a summary order under
s. 126.85 (2) that prohibits the vegetable contractor from procuring processing vegetables from vegetable producers or producer agents, or requires the vegetable contractor to pay cash on delivery under all vegetable procurement contracts.
126.61(6)(e)2.
2. Suspend or revoke the vegetable contractor's license.
126.61(7)(a)(a) The department may release security filed under
sub. (1) (a), except for any amount of security that the vegetable contractor is required to file because
sub. (1) (b) or
(bm) applies to the vegetable contractor, if any of the following applies:
126.61(7)(a)1.
1. The vegetable contractor reports less than $1,000,000 in annual contract obligations under
s. 126.56 (9) (a) for at least 2 consecutive years and the vegetable contractor pays the quarterly fund assessment that would have been required of the vegetable contractor if the vegetable contractor had been a contributing vegetable contractor on the most recent quarterly installment date under
s. 126.60 (6).
126.61(7)(a)2.
2. The vegetable contractor's annual financial statement under
s. 126.58 shows positive equity for at least 2 consecutive years and the vegetable contractor pays the quarterly fund assessment that would have been required of the vegetable contractor if the vegetable contractor had been a contributing vegetable contractor on the most recent quarterly installment date under
s. 126.60 (6).
126.61(7)(b)
(b) The department may release security filed under
sub. (1) (b), except for any amount of security that the vegetable contractor is required to file because
sub. (1) (a) or
(bm) applies to the vegetable contractor, if any of the following applies:
126.61(7)(b)1.
1. The vegetable contractor has no unpaid obligations under deferred payment contracts, and will not use deferred payment contracts in the current license year.
126.61(7)(b)2.
2. The vegetable contractor files 2 consecutive annual financial statements under
s. 126.58 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 4.0 to 1.0.
126.61(7)(bm)
(bm) The department may release security filed under
sub. (1) (bm), except for any amount of security that the vegetable contractor is required to file because
sub. (1) (a) or
(b) applies to the vegetable contractor, if the vegetable contractor files 2 consecutive annual financial statements under
s. 126.58 showing that the vegetable contractor no longer has negative equity, a current ratio of less than 1.25 to 1.0, or a debt to equity ratio of more than 4.0 to 1.0.
126.61(7)(c)
(c) On May 1, 2002, the department may release security maintained under
sub. (2), unless the vegetable contractor is required to file security under
sub. (1).
126.61(7)(d)
(d) The department may release security to the extent that the security exceeds the amount required under
sub. (3).
126.61(7)(e)
(e) The department may release security if the vegetable contractor files alternative security, of equivalent value, that the department approves.
126.61(7)(f)
(f) The department shall release security if the vegetable contractor has gone out of business and paid all contract obligations in full.
126.62
126.62
Vegetable contractors; records. 126.62(1)
(1)
Records required. A vegetable contractor shall keep all of the following:
126.62(1)(a)
(a) Copies of all written vegetable procurement contracts.
126.62(1)(b)
(b) A current record of all vegetable contract obligations, payments, and unpaid balances.
126.62(2)
(2) Records retention. A vegetable contractor shall keep all of the following records for at least 6 years from the date of their creation:
126.62(2)(b)
(b) Records that the vegetable contractor was required to keep, under s.
100.03, 1999 stats., and department rules, before February 1, 2002.
126.62(3)
(3) Records inspection. A vegetable contractor shall make records required under this section available to the department for inspection and copying upon request.
126.62 History
History: 2001 a. 16;
2003 a. 321.
126.63
126.63
Vegetable contractors; business practices. 126.63(1)(a)(a) A vegetable contractor shall grade vegetables according to the following standards if the vegetable grade may affect the amount received by the vegetable producer:
126.63(1)(a)1.
1. Standard grading procedures that the department establishes by rule.
126.63(1)(a)2.
2. Uniform grade standards that the department establishes by rule, unless the vegetable procurement contract clearly specifies alternative grade standards.
