126.44(1)(c)1.
1. A contributing milk contractor who reports no more than $1,500,000 in annual milk payroll obligations under
s. 126.41 (6) (a).
126.44(1)(c)2.
2. A contributing milk contractor who procures producer milk in this state solely as a producer agent.
126.44(1)(d)
(d) Rather than filing an annual financial statement under
par. (b), a milk contractor who is disqualified under
s. 126.45 (3) (a) may file, during each fiscal year, a compilation of financial information that is satisfactory to the department along with the milk contractor's sworn and notarized statement that the financial information is correct. The milk contractor shall file the financial information by the 15th day of the 4th month following the close of the milk contractor's fiscal year. The department may extend the filing deadline for up to 30 days if the milk contractor, or an accountant preparing the financial information, files a written extension request at least 10 days before the filing deadline.
126.44(2)
(2) Voluntary annual financial statement. A milk contractor licensed under
s. 126.41 (1) who is not required to file a financial statement under
sub. (1) may file an annual financial statement with the department for any of the following reasons:
126.44(3)
(3) Quarterly financial statements. A milk contractor licensed under
s. 126.41 (1) who is not a contributing milk contractor shall file quarterly financial statements with the department for the first 3 quarters in each of the milk contractor's fiscal years. The milk contractor shall file each quarterly financial statement no later than 60 days after the end of the fiscal quarter to which the financial statement pertains. With each quarterly financial statement, the milk contractor shall include the milk contractor's sworn and notarized statement that the financial statement is correct.
126.44(5)
(5) Reviewed or audited financial statement. 126.44(5)(a)(a) A milk contractor filing an annual financial statement under
sub. (1) or
(2) shall file an audited financial statement if the milk contractor reports more than $6,000,000 in annual milk payroll obligations under
s. 126.41 (6) (a).
126.44(5)(b)
(b) If
par. (a) does not apply, a milk contractor filing an annual financial statement under
sub. (1) or
(2) shall file either a reviewed financial statement or an audited financial statement.
126.44(6)
(6) Accounting period. A milk contractor filing an annual financial statement under
sub. (1) or
(2) shall file a financial statement that covers the milk contractor's last completed fiscal year unless the milk contractor has been in business for less than one year.
126.44(6m)
(6m) Interim financial statement. The department may, at any time, require a milk contractor licensed under
s. 126.41 (1) to file an interim financial statement with the department. With the interim financial statement, the milk contractor shall provide the milk contractor's sworn and notarized statement that the financial statement is correct. An interim financial statement need not be a reviewed financial statement or an audited financial statement.
126.44(7)
(7) Generally accepted accounting principles. 126.44(7)(a)(a) Except as provided in
par. (b), a milk contractor filing an annual financial statement under this section shall file a financial statement that is prepared according to generally accepted accounting principles.
126.44(7)(b)
(b) If a milk contractor is a sole proprietor and the milk contractor's financial statement is not audited, the milk contractor shall file a financial statement that is prepared on a historical cost basis.
126.44(8)(a)(a) Except as provided in
par. (b), a milk contractor filing a financial statement under this section shall file a financial statement that consists of a balance sheet, income statement, equity statement, statement of cash flows, notes to those statements, and any other information required by the department. If the milk contractor is a sole proprietor, the milk contractor shall file his or her business and personal financial statements.
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)(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)(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)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)(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)3.
3. Multiply the amount determined under
subd. 2. by negative one.
126.46(2)(a)7.
7. Add the amount determined under
subd. 4. to the amount determined under
subd. 6.
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)3.
3. Multiply the amount determined under
subd. 2. by negative one.
126.46(2)(b)7.
7. Add the amount determined under
subd. 4. to the amount determined under
subd. 6.
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)6.
6. Add the amount determined under
subd. 3. to the amount determined under
subd. 5.
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:
