126.61(7)(bm)
(bm) The department may release security filed under
sub. (1) (b), except for any amount of security that the vegetable contractor is required to file because
sub. (1) (a) applies to the vegetable contractor, if the vegetable contractor files 2 consecutive annual financial statements under
s. 126.58 showing that the vegetable 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 4.0 to 1.0.
126.61(7)(d)
(d) The department may release security to the extent that the security exceeds the amount required under
sub. (3).
126.61(7)(e)
(e) The department may release security if the vegetable contractor files alternative security, of equivalent value, that the department approves.
126.61(7)(f)
(f) The department shall release security if the vegetable contractor has gone out of business and paid all contract obligations in full.
126.62
126.62
Vegetable contractors; records. 126.62(1)
(1)
Records required. A vegetable contractor shall keep all of the following:
126.62(1)(a)
(a) Copies of all written vegetable procurement contracts.
126.62(1)(b)
(b) A current record of all vegetable contract obligations, payments, and unpaid balances.
126.62(2)
(2) Records retention. A vegetable contractor shall keep all records required under
sub. (1) for at least 6 years from the date of their creation.
126.62(3)
(3) Records inspection. A vegetable contractor shall make records required under this section available to the department for inspection and copying upon request.
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 after January 31 for processing vegetables delivered on or before December 31, in accordance with a deferred payment contract, if all of the following apply:
126.63(4)(c)2.
2. The deferred payment contract specifies a date by which full payment must be paid.
126.63(4)(c)3.
3. The deferred payment contract clearly and conspicuously discloses that the vegetable producer or producer agent is disqualified from filing a default claim under
s. 126.70 in the event that the vegetable contractor defaults on payment under the deferred payment contract. The department may by rule or order specify the form and content of the disclosure.
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;
2009 a. 296.
126.64
126.64
Vegetable contractors; prohibited practices. No vegetable contractor, or officer, employee, or agent of a 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(7)
(7) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.
126.64 History
History: 2001 a. 16;
2009 a. 296.
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)(a)(a) A person who is one of the following may file a default claim with the department against a contractor who is licensed, or required to be licensed, under this chapter, unless the person has waived eligibility to file a claim as provided in
pars. (b) and
(c):
126.70(1)(a)1.
1. 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)(a)2.
2. 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)(a)3.
3. 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)(a)4.
4. 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(1)(b)
(b) A producer or producer agent may permanently waive eligibility to file a default claim against a grain dealer, milk contractor, or vegetable contractor if, at the time of the waiver, any of the following applies:
126.70(1)(b)1.
1. The producer or producer agent has a greater than 50 percent ownership interest in the grain dealer, milk contractor, or vegetable contractor.
126.70(1)(b)2.
2. Persons who collectively have a greater than 50 percent ownership interest in the producer or producer agent also collectively have a greater than 50 percent ownership interest in the grain dealer, milk contractor, or vegetable contractor.
126.70(1)(c)
(c) A producer or producer agent shall file a waiver under
par. (b) with the department in writing, on a form provided by the department. In the waiver, the producer or producer agent shall include documentation to show that the requirements in
par. (b) are satisfied and that the individuals signing the waiver are authorized to do so on behalf of the producer or producer agent.
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.
