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.
126.63(1)(b)
(b) If a vegetable contractor makes any deduction for tare, the vegetable contractor shall determine tare according to procedures that the department establishes by rule.
126.63(1)(c)
(c) The department shall establish grade standards for vegetables that conform to grade standards adopted by the federal department of agriculture under
7 USC 1621 to
1632.
126.63(2)
(2) Prohibited deductions. No vegetable purchaser may deduct, from the amount payable under a vegetable procurement contract, an amount designated for the payment of any vegetable contractor license fee, surcharge, or fund assessment under this subchapter.
126.63(3)
(3) Timely payment. A vegetable contractor shall pay a vegetable producer or producer agent according to the vegetable procurement contract. The vegetable contractor shall make the following payments by the following dates, unless the contract specifies a different payment date in writing:
126.63(3)(a)
(a) The 15th day of the month immediately following the month in which the vegetable contractor harvests or accepts delivery of processing vegetables, the full amount owed under the contract for those vegetables.
126.63(3)(b)
(b) The 15th day of the month immediately following the month in which the vegetable contractor rejects or fails to harvest processing vegetables tendered under the vegetable procurement contract, the full amount owed under the contract for those vegetables.
126.63(4)(a)(a) Except as provided in
par. (b) or
(c), a vegetable contractor shall pay all outstanding obligations to vegetable producers by January 31 of each license year.
126.63(4)(b)
(b) For processing vegetables tendered or delivered in January of any license year, a vegetable contractor shall pay the full amount owed under the vegetable procurement contract by February 15 or by the 30th day after the date of delivery, whichever date is later.
126.63(4)(c)
(c) A vegetable contractor may pay outstanding producer obligations in accordance with a deferred payment contract that complies with
sub. (5) and specifies a payment date after January 31 for processing vegetables delivered on or before December 31.
126.63(5)(a)(a) Before a vegetable contractor offers a deferred payment contract to any vegetable producer, the vegetable contractor shall put the deferred payment contract to a vote of vegetable producers, as provided in
par. (b), obtain the approval of a majority of the voting vegetable producers, and comply with
par. (c).
126.63(5)(b)
(b) To put a deferred payment contract to a vote of vegetable producers, the vegetable contractor shall give written notice to all vegetable producers in this state from whom the vegetable contractor procured the same type of processing vegetables during the preceding license year. In the notice, the vegetable contractor shall include a copy of the proposed contract, shall announce a meeting at which the vegetable producers will be asked to vote on the proposed contract, and shall include a mail ballot by which a vegetable producer may vote without attending the meeting. The vegetable contractor shall conduct the voting by secret ballot.
126.63(5)(c)
(c) To comply with this paragraph, a vegetable contractor shall file all of the following with the department:
126.63(5)(c)1.
1. A sworn statement certifying that the contract was approved in a vote of vegetable producers under this subsection.
126.63(6)
(6) Cash on delivery. A vegetable contractor shall pay cash on delivery under all vegetable procurement contracts if any of the following applies:
126.63(6)(a)
(a) The vegetable contractor stated, in the vegetable contractor's last annual statement under
s. 126.56 (9) (g), that the vegetable contractor would pay cash on delivery.
126.63 History
History: 2001 a. 16.
126.64
126.64
Vegetable contractors; prohibited practices. No vegetable contractor may do any of the following:
126.64(1)
(1) Misrepresent the weight, grade, or quality of processing vegetables under a vegetable procurement contract.
126.64(2)
(2) Falsify any record or account, or conspire with any other person to falsify a record or account.
126.64(3)
(3) Make any false or misleading representation to the department.
126.64(4)
(4) If the vegetable contractor is licensed under
s. 126.56, engage in any activity that is inconsistent with representations made in the vegetable contractor's annual license application.
126.64(5)
(5) Make any false or misleading representation to a vegetable producer or producer agent related to matters regulated under this chapter.
126.64(6)
(6) Fail to file the full amount of security required under
s. 126.61 (6) by the date that the department specifies.
126.64 History
History: 2001 a. 16.
RECOVERY PROCEEDINGS
126.68
126.68
Definitions. In this subchapter:
126.68(1)
(1) "Contributing contractor" means any of the following:
126.68 History
History: 2001 a. 16.
126.70
126.70
Recovery proceedings. 126.70(1)
(1)
Default claims. Any of the following persons may file a default claim with the department against a contractor who is licensed, or required to be licensed, under this chapter:
126.70(1)(a)
(a) A grain producer or producer agent, as defined in
s. 126.10 (13), who claims that a grain dealer has failed to pay, when due, for producer grain that the grain dealer procured in this state.
126.70(1)(b)
(b) A depositor who is either a grain producer or a producer agent, as defined in
s. 126.10 (13), and who claims that a grain warehouse keeper has failed to return stored grain or its equivalent upon demand.
126.70(1)(c)
(c) A milk producer or producer agent, as defined in
s. 126.40 (13), who claims that a milk contractor has failed to pay, when due, for producer milk procured in this state.
126.70(1)(d)
(d) A vegetable producer or producer agent, as defined in
s. 126.55 (12), who claims that a vegetable contractor has failed to make payment when due under a vegetable procurement contract.
126.70(2)
(2) Filing default claims. A claimant shall file a default claim under
sub. (1) within 30 days after the claimant first learns of the default, subject to
sub. (3). The claimant shall specify the nature and amount of the default. The department may investigate the alleged default and may require the claimant to provide supporting documentation.
126.70(3)
(3) Initiating a recovery proceeding. 126.70(3)(a)(a) The department may initiate a recovery proceeding in response to one or more default claims under
sub. (1). The department shall issue a written notice announcing the recovery proceeding. The department shall mail or deliver a copy of the notice to the contractor and each claimant in the proceeding.
126.70(3)(b)
(b) If the department has reason to believe that other persons may have default claims under
sub. (1) against the same contractor, the department may invite those persons to file their claims in the recovery proceeding. The department may publish the invitation in any of the following ways:
126.70(3)(b)1.
1. By posting it at the contractor's place of business.
126.70(3)(b)3.
3. By mailing or delivering it to prospective claimants known to the department.
126.70(3)(b)4.
4. By other means that the department considers appropriate.
126.70(3)(c)
(c) In its invitation under
par. (b), the department may specify a deadline date and a procedure for filing default claims. An invitation may indicate the amount of a prospective claimant's apparent claim and may ask the prospective claimant to verify or correct that amount.
126.70(3)(d)
(d) The department may initiate separate recovery proceedings for default claims that comply with
sub. (2) but are filed after the deadline date under
par. (c).
126.70(4)
(4) Auditing claims. The department shall audit each claim included in a recovery proceeding. The department shall disallow a claim if the department finds any of the following:
126.70(4)(a)
(a) That the claim is false or not adequately documented.
126.70(4)(b)
(b) That the claimant filed the claim more than 30 days after the claimant first learned of the contractor's default, unless the department specifies a later claim-filing deadline under
sub. (3) (c).
126.70(4)(c)
(c) That the claimant, without any contractual obligation to do so, continued to deliver grain, milk, or vegetables to the defaulting contractor more than 10 days after the claimant first learned of the contractor's default.
126.70(4)(d)
(d) That the claimant failed to comply with claim-filing deadlines or procedures specified under
sub. (3) (c).
126.70(4)(e)
(e) That the person filing the claim is not an authorized claimant under
sub. (1).
126.70(5)(a)(a) The department shall determine the amount of an allowed claim based on the contract between the parties. If the contract terms are unclear, the department may determine the allowed claim amount based on local market prices, applicable milk marketing order prices, customs in the trade, or other evidence that the department considers appropriate.
126.70(5)(b)
(b) Notwithstanding
par. (a), if the default involves a grain warehouse keeper's failure to return stored grain to a depositor upon demand, the department shall calculate the value of the grain based on local market prices on the day on which the depositor made the demand.
126.70(5)(c)
(c) The department shall subtract from the allowed claim amount any offsetting payments made by the contractor and any obligations for which the claimant is liable to the contractor.
126.70(6)
(6) Proposed decision. After the department completes its audit under
sub. (4), the department shall issue a proposed decision. The department shall mail or deliver a copy of the proposed decision to the contractor and each claimant. The department shall do all of the following in the proposed decision:
126.70(6)(a)
(a) Specify proposed findings of fact, proposed conclusions of law, and a proposed order.
126.70(6)(b)
(b) Allow or disallow each default claim and specify the amount of each allowed claim. The department may disallow part of a claim.
126.70(6)(c)
(c) Specify, for each allowed claim, the amount that the department is authorized to pay under
s. 126.71.
126.70(6)(d)
(d) Specify the method, under
s. 126.71, by which the department will pay the authorized amounts under
par. (c).
126.70(6)(e)
(e) Explain a claimant's right under
s. 126.87 (4) to seek court recovery of that portion of an allowed claim that is not paid by the department.
126.70(6)(f)
(f) Specify a date by which the contractor or claimant may file written objections to the proposed decision.
126.70(7)
(7) Final decision if no objections. If no contractor or claimant files a timely written objection to the proposed decision under
sub. (6), the department may issue the proposed decision as the department's final decision in the recovery proceeding, without further notice or hearing. The department shall mail or deliver a copy of the final decision to the contractor and each claimant.
126.70(8)
(8) Objections to proposed decision; notice, hearing, and final decision.
