126.60(2)(a)3.
3. Multiply the amount determined under
subd. 2. by negative one.
126.60(2)(a)8.
8. Add the amount determined under
subd. 4. to the amount determined under
subd. 7.
126.60(2)(b)
(b) If the vegetable contractor has filed an annual financial statement under
s. 126.58 and that financial statement shows a current ratio of less than 1.25 to 1.0, but greater than 1.1 to 1.0, the vegetable contractor's current ratio assessment rate equals the current ratio assessment factor in
sub. (3) (b) multiplied by the following amount:
126.60(2)(b)3.
3. Multiply the amount determined under
subd. 2. by negative one.
126.60(2)(b)8.
8. Add the amount determined under
subd. 4. to the amount determined under
subd. 7.
126.60(2)(c)
(c) If the vegetable contractor has filed an annual financial statement under
s. 126.58 and that financial statement shows a current ratio of less than or equal to 1.1 to 1.0, the vegetable contractor's current ratio assessment rate equals the current ratio assessment factor in
sub. (3) (b) multiplied by 7.512617.
126.60(2)(d)
(d) If the vegetable contractor has not filed an annual financial statement under
s. 126.58, the vegetable contractor's current ratio assessment rate equals the current ratio assessment factor in
sub. (3) (b) multiplied by 3.84961.
126.60(3)
(3) Current ratio assessment factor. 126.60(3)(a)(a) A vegetable contractor's current ratio assessment factor under
sub. (2) (a) is 0.00048, except as follows:
126.60(3)(a)1.
1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is 0.00029.
126.60(3)(a)2.
2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is zero.
126.60(3)(b)
(b) A vegetable contractor's current ratio assessment factor under
sub. (2) (b) to
(d) is 0.00072, except as follows:
126.60(3)(b)1.
1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is 0.00058.
126.60(3)(b)2.
2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's current ratio assessment factor is 0.00035.
126.60(4)
(4) Debt to equity ratio assessment rate. A vegetable contractor's debt to equity ratio assessment rate for a license year is calculated, at the beginning of the license year, as follows:
126.60(4)(a)
(a) If the vegetable contractor has filed an annual financial statement under
s. 126.58 and that financial statement shows positive equity and a debt to equity ratio of not more than 4.0 to 1.0, the vegetable 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:
126.60(4)(a)7.
7. Add the amount determined under
subd. 3. to the amount determined under
subd. 6.
126.60(4)(b)
(b) If the vegetable contractor has filed an annual financial statement under
s. 126.58 and that financial statement shows a debt to equity ratio of greater than 4.0 to 1.0 but less than 6.0 to 1.0, the vegetable 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:
126.60(4)(b)7.
7. Add the amount determined under
subd. 3. to the amount determined under
subd. 6.
126.60(4)(c)
(c) If the vegetable contractor has filed an annual financial statement under
s. 126.58 and that financial statement shows negative equity or a debt to equity ratio of at least 6.0 to 1.0, the vegetable contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in
sub. (5) (b) multiplied by 35.859145.
126.60(4)(d)
(d) If the vegetable contractor has not filed an annual financial statement under
s. 126.58, the vegetable contractor's debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in
sub. (5) (b) multiplied by 1.34793.
126.60(5)
(5) Debt to equity ratio assessment factor. 126.60(5)(a)(a) A vegetable contractor's debt to equity ratio assessment factor under
sub. (4) (a) is 0.000135, except as follows:
126.60(5)(a)1.
1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is 0.00008.
126.60(5)(a)2.
2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is zero.
126.60(5)(b)
(b) A vegetable contractor's debt to equity ratio assessment factor under
sub. (4) (b) to
(d) is 0.000203, except as follows:
126.60(5)(b)1.
1. For the vegetable contractor's 4th and 5th consecutive full license years as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is 0.00016.
126.60(5)(b)2.
2. For the vegetable contractor's 6th or higher consecutive full license year as a contributing vegetable contractor, the vegetable contractor's debt to equity ratio assessment factor is 0.0001.
126.60(5m)
(5m) Reduced assessment for certain vegetable contractors filing security. If a vegetable contractor files security under
s. 126.61 (1) (b), the vegetable contractor's assessment is the amount determined under
sub. (1) reduced by an amount determined as follows:
126.60(5m)(a)
(a) Divide the amount of security that the vegetable contractor is required to file as determined under
s. 126.61 (3) (b) by the amount of the vegetable contractor's estimated default exposure, as defined in
s. 126.61 (1) (b) 1.
126.60(5m)(b)
(b) Multiply the amount of the assessment determined under
sub. (1) by the amount determined under
par. (a).
126.60(6)(a)(a) A contributing vegetable contractor shall pay the vegetable contractor's annual fund assessment in equal quarterly installments that are due as follows:
126.60(6)(a)1.
1. The first installment is due on March 1 of the license year.
126.60(6)(a)2.
2. The 2nd installment is due on June 1 of the license year.
126.60(6)(a)3.
3. The 3rd installment is due on September 1 of the license year.
126.60(6)(a)4.
4. The 4th installment is due on December 1 of the license year.
126.60(6)(b)
(b) A contributing vegetable contractor may prepay any of the quarterly installments under
par. (a).
126.60(6)(c)
(c) A contributing vegetable contractor who applies for an annual license after the beginning of a license year shall pay the full annual fund assessment required under this section. The vegetable contractor shall pay, with the first quarterly installment that becomes due after the day on which the department issues the license, all of that year's quarterly installments that were due before that day.
126.60(6)(d)
(d) A contributing vegetable contractor who fails to pay the full amount of any quarterly installment when due shall pay, in addition to that installment, a late payment penalty of $50 or 10% of the overdue installment amount, whichever is greater.
126.60(7)
(7) Notice of annual assessment and quarterly installments. When the department issues an annual license to a contributing vegetable contractor, the department shall notify the vegetable contractor of all of the following:
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.
126.61
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)1.1. In this paragraph, "estimated default exposure" means 75 percent of the highest amount of unpaid contract obligations, reported by a vegetable contractor under
s. 126.56 (9) (b) or
(12) that the vegetable contractor had at any time during the last 12 months.
126.61(1)(b)2.
2. Except as provided in
par. (c), a vegetable contractor shall file security with the department, and shall maintain that security until the department releases it under
sub. (7) (bm), if at any time all of the following apply:
126.61(1)(b)2.a.
a. The vegetable contractor's latest annual financial statement under
s. 126.58 (1) 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.
126.61(1)(b)2.b.
b. The vegetable contractor's estimated default exposure exceeds $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(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 75 percent of the amount of unpaid contract obligations last reported under
s. 126.56 (9) (b) or
(12), except that this amount is not required of a contributing vegetable contractor.
