126.47(4)(c)5.
5. The certificate is issued in a form, and subject to any terms and conditions, that the department considers appropriate.
126.47(4)(d)
(d) An irrevocable bank letter of credit if all of the following apply:
126.47(4)(d)1.
1. The letter of credit is payable to the department for the benefit of milk producers or producer agents.
126.47(4)(d)3.
3. The letter of credit is issued for an initial period of at least one year.
126.47(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.
126.47(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.
126.47(4)(e)
(e) Security filed with the department under s.
100.06, 1999 stats., before May 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).
126.47(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 milk producers and producer agents.
126.47(6)(a)(a) The department may, at any time, demand additional security from a milk contractor if any of the following applies:
126.47(6)(a)1.
1. The milk contractor's existing security falls below the amount required under
sub. (3) for any reason, including depreciation in the value of the security, increased obligations to milk producers or producer agents, or the cancellation of any security filed with the department.
126.47(6)(a)2.
2. The milk contractor fails to provide required information that is relevant to a determination of security requirements.
126.47(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.
126.47(6)(c)
(c) A milk contractor may request a hearing, under
ch. 227, on a demand for security under
par. (b). A request for hearing does not automatically stay a security demand.
126.47(6)(d)
(d) If a milk contractor fails to comply with the department's demand for security under this subsection, the milk contractor shall give written notice of that fact to all milk producers and producer agents from whom the contractor procures producer milk in this state. If the milk contractor fails to give accurate notice under this paragraph within 5 days after the deadline for filing security under
par. (b) has passed, the department shall promptly notify milk producers and producer agents by publishing a class 3 notice under
ch. 985. The department may also give individual notice to those milk producers or producer agents of whom the department is aware.
126.47(6)(e)
(e) If a milk contractor fails to comply with the department's demand for security under this subsection, the department may do any of the following:
126.47(7)(a)(a) The department may release security filed under
sub. (1) (a) if any of the following applies:
126.47(7)(a)1.
1. The milk contractor reports not more than $1,500,000 in milk payroll obligations under
s. 126.41 (6) (a) for at least 2 consecutive years and the milk contractor pays the quarterly fund assessment that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the most recent quarterly installment date under
s. 126.46 (6).
126.47(7)(a)2.
2. The milk contractor's annual financial statement under
s. 126.44 shows positive equity for at least 2 consecutive years, the financial statements are audited or, if the milk contractor reports $6,000,000 or less in annual milk payroll obligations under
s. 126.41 (6) (a), reviewed, and the milk contractor pays the quarterly fund assessment that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the most recent quarterly installment date under
s. 126.46 (6).
126.47(7)(am)
(am) The department may release security filed under
sub. (1) (b), except for any amount of security that the milk contractor is required to file because
sub. (1) (a) applies to the milk contractor, if the milk contractor files 2 consecutive annual financial statements under
s. 126.44 showing that the milk 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 2.0 to 1.0.
126.47(7)(b)
(b) On August 1, 2002, the department may release security maintained under
sub. (2), unless the milk contractor is required to file security under
sub. (1).
126.47(7)(c)
(c) The department may release security to the extent that the security exceeds the amount required under
sub. (3).
126.47(7)(d)
(d) The department may release security if the milk contractor files alternative security, of equivalent value, that the department approves.
126.47(7)(e)
(e) The department shall release security if the milk contractor has gone out of business and paid all milk payroll obligations in full.
126.48
126.48
Milk contractors; payments to producers. 126.48(1)(1)
First monthly payment. By the 4th day of each month, a milk contractor shall pay for producer milk received during the first 15 days of the preceding month. The milk contractor shall base the payment on an estimated price that is at least 80% of the class III price published by the regional federal milk market administrator for the month preceding the month in which the milk is received, or 80% of the contract price, whichever is greater.
126.48(2)
(2) Second monthly payment. By the 19th day of each month, a milk contractor shall pay the balance due for producer milk received during the preceding month.
126.48(3)
(3) Payment explanation. The department may, by rule, require a milk contractor to provide a milk producer or producer agent with a written explanation of each payment under this section. The department may specify the content of the explanation, including information related to any of the following:
126.48(3)(b)
(b) Milk producer or producer agent identification.
126.48(3)(i)
(i) Average gross pay per hundredweight less hauling charges.
126.48 History
History: 2001 a. 16.
126.49
126.49
Milk contractors; records and reports. 126.49(1)(1)
Required records. A milk contractor shall keep accurate records and accounts of milk receipts, payments for milk received, and amounts owed to milk producers. The department may, by rule, specify records that a milk contractor must keep.
126.49(2)
(2) Required reports. The department may, by rule, require a milk contractor to file with the department periodic reports of information needed for the administration of this chapter.
126.49(3)
(3) Records retention; inspection. A milk contractor shall retain records required under
sub. (1) for at least 6 years after the records are created. A milk contractor shall make the records available to the department for inspection and copying upon request.
126.49 History
History: 2001 a. 16.
126.50
126.50
Milk contractors; prohibited practices. No milk contractor may do any of the following:
126.50(1)
(1) Falsify any record or account, or conspire with any other person to falsify a record or account.
126.50(2)
(2) Make any false or misleading representation to the department.
126.50(3)
(3) If the milk contractor is licensed under
s. 126.41 (1), engage in any activity that is inconsistent with representations made in the milk contractor's annual license application.
126.50(4)
(4) Make any false or misleading representation to a milk producer or producer agent related to matters regulated under this chapter.
126.50(5)
(5) Fail to file the full amount of security required under
s. 126.47 (6) by the date that the department specifies.
126.50 History
History: 2001 a. 16.
126.51
126.51
Rules for qualified producer agents. The department shall promulgate rules specifying requirements for qualified producer agents, including a requirement that a qualified producer agent have a written contract with each milk producer from whom the qualified producer agent procures milk in this state and that the contract disclose all of the following:
126.51(1)
(1) That the producer agent does not take title to the milk producer's milk.
126.51(2)
(2) That the producer agent holds all milk receipts in trust for milk producers.
126.51(3)
(3) That the producer agent's obligations to milk producers are not secured or indemnified under this chapter to the same degree as are the obligations of other milk contractors.
126.51 History
History: 2001 a. 16.
VEGETABLE CONTRACTORS
Subch. VI of ch. 126 Cross-reference
Cross Reference: See also ch.
ATCP 101, Wis. adm. code.
126.55
126.55
Definitions. In this subchapter:
126.55(1)
(1) "Cash on delivery" means cash payment of the full agreed price for processing vegetables at the time of delivery or, if the vegetables are graded, within 72 hours after the time of delivery.
126.55(2)
(2) "Cash payment" means payment in any of the following forms:
126.55(2)(b)
(b) A cashier's check, or a check that a bank issues and certifies.
126.55(3)
(3) "Contract obligation" means the net amount, whether paid or unpaid, that a vegetable contractor owes a vegetable producer or producer agent under a vegetable procurement contract. "Contract obligation" includes a net amount owed for unharvested acreage.
126.55(4)
(4) "Contributing vegetable contractor" means a vegetable contractor who is licensed under
s. 126.56 (1), who either has paid one or more quarterly installments under
s. 126.60 (6) or is required to contribute to the fund, but the first quarterly installment under
s. 126.60 (6) is not yet due, who has not elected not to participate in the fund under
s. 126.595 (1), and who is not disqualified under
s. 126.59 (2).
126.55(6)
(6) "Current ratio" means the ratio of the value of current assets to the value of current liabilities, calculated according to
s. 126.58 (6) (c) 1.
126.55(7)
(7) "Debt to equity ratio" means the ratio of the value of liabilities to equity, calculated according to
s. 126.58 (6) (c) 2.
126.55(8)
(8) "Deferred payment contract" means a vegetable procurement contract in which the vegetable producer or a producer agent agrees to accept payment after January 31 for processing vegetables harvested during the previous calendar year.
126.55(9)
(9) "Disqualified vegetable contractor" means a vegetable contractor who is disqualified from the fund under
s. 126.59 (2).
126.55(10m)
(10m) "License year" means the period beginning on February 1 and ending on the following January 31.
126.55(10r)
(10r) "Processing potato buyer" means a vegetable contractor who purchases processing potatoes and no other processing vegetables.
126.55(10t)
(10t) "Processing potatoes" means potatoes grown or sold for use in food processing, regardless of whether those potatoes are actually harvested or processed as food.
126.55(11)
(11) "Processing vegetables" means vegetables grown or sold for use in food processing, regardless of whether those vegetables are actually harvested or processed as food. "Processing vegetables" includes sweet corn grown or sold for use in food processing, but does not include grain.
126.55(12)
(12) "Producer agent" means a person who, without taking title to vegetables, acts on behalf of a vegetable producer to market or accept payment for processing vegetables that the vegetable producer grows in this state. "Producer agent" does not include any of the following:
126.55(12)(a)
(a) A person who merely brokers a contract between a vegetable producer and a vegetable contractor, without becoming a party to the contract or accepting payment on behalf of the vegetable producer.
126.55(12)(b)
(b) A person who merely holds or transports processing vegetables for a vegetable producer, without marketing the vegetables or accepting payment on behalf of the vegetable producer.
126.55(13)
(13) "Time of delivery" under a vegetable procurement contract means the time at which one of the following occurs:
126.55(13)(a)
(a) The vegetable contractor harvests the vegetables.
126.55(13)(b)
(b) The vegetable producer delivers harvested vegetables to the custody or control of the vegetable contractor.
