126.595(1)(c)
(c) Certifying in a statement to the department that the processing potato buyer does not at the time of certification have any unpaid obligations to vegetable producers under any of the following:
126.595(1)(c)1.
1. An unwritten contract with a vegetable producer in this state under which the processing potato buyer takes custody or control of processing potatoes more than 10 days before paying for the processing potatoes in full.
126.595(1)(c)2.
2. A written contract with a vegetable producer in this state under which the processing potato buyer takes custody or control of processing potatoes more than 30 days before paying for the processing potatoes in full.
126.595(1)(d)
(d) Providing evidence to the department that the processing potato buyer has a license under the federal Perishable Agricultural Commodities Act,
7 USC 499a to
499t, that is in good standing.
126.595(1)(e)
(e) Certifying that it will disclose to all vegetable producers with whom the processing potato buyer contracts that the processing potato buyer does not participate in the fund by providing the following statement, in at least 10-point bold type, in each written contract for processed potatoes or, for unwritten contracts, in a written statement signed by the vegetable processor and the vegetable producer: "The undersigned processing potato buyer, as defined in
s. 126.55 (10r), Wisconsin Statutes, does not participate in the Wisconsin agricultural producer security fund, established under
s. 25.463, Wisconsin Statutes. As a result the producer does not have the security or other protections against nonpayment provided by that fund. The parties to this contract acknowledge that the Wisconsin Department of Agriculture, Trade and Consumer Protection and the State of Wisconsin cannot be held liable for any default under the contract between the parties."
126.595(1)(f)
(f) Maintaining documentation that every purchase of potatoes grown in this state for processing under contract with the processing potato buyer qualifies for trust protection under the federal Perishable Agricultural Commodities Act,
7 USC 499a to
499t, and that the vegetable producers' trust rights have been validly preserved.
126.595(2)(a)1.1. A processing potato buyer that has elected not to participate in the fund may rescind its election and participate in the fund by notifying the department of its intention to participate and complying with
par. (b). Participation is effective the 30th day after the day on which the department receives the notice or on the effective date of the security described in
par. (b) 1., whichever is later.
126.595(2)(a)2.
2. A processing potato buyer that has elected not to participate in the fund shall participate in the fund if the processing potato buyer ceases to meet the requirements in
sub. (1). Participation is effective on the day on which the department notifies the processing potato buyer that the potato buyer in no longer eligible under
sub. (1) or on the effective date of the security described in
par. (b) 1., whichever is later.
126.595(2)(b)1.1. A processing potato buyer that decides or is required to participate in the fund under
par. (a) shall file security with the department in a form that satisfies the requirements in
s. 126.61 (4) and that is in an amount equal to at least 75 percent of the amount last reported under
s. 126.56 (9) (b). The processing potato buyer shall maintain the security until the department releases it. The department may not release the security until the processing potato buyer has participated in the fund for 2 continuous complete license years.
126.595(2)(b)2.
2. A processing potato buyer that decides or is required to participate in the fund under
par. (a) shall begin contributing to the fund at the beginning of its 2nd complete license year of participation, except that this requirement does not apply to a processing potato buyer that is disqualified under
s. 126.59 (2).
126.595 History
History: 2005 a. 80.
126.60
126.60
Contributing vegetable contractors; fund assessments. 126.60(1)(1)
General. A contributing vegetable 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:
126.60(1)(a)
(a) The vegetable contractor's current ratio assessment. The current ratio assessment for a license year equals the vegetable contractor's current ratio assessment rate under
sub. (2) multiplied by the amount reported under
s. 126.56 (9) (am) in the vegetable contractor's license application for that license year.
126.60(1)(b)
(b) The vegetable contractor's debt to equity ratio assessment. The debt to equity ratio assessment for a license year equals the vegetable contractor's debt to equity ratio assessment rate under
sub. (4) multiplied by the amount reported under
s. 126.56 (9) (am) in the vegetable contractor's license application for that license year.
126.60(2)
(2) Current ratio assessment rate. A vegetable contractor's current ratio assessment rate is calculated, at the beginning of the license year, as follows:
126.60(2)(a)
(a) If the vegetable contractor has filed an annual financial statement under
s. 126.58 and that financial statement shows a current ratio of at least 1.25 to 1.0, the vegetable 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:
126.60(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:
