126.42 (6) Fee changes. The department may modify the license fees under sub. (1) by rule, as provided under s. 126.81 (2).

126.44 (1) (a) A milk contractor shall file an annual financial statement with the department before the department first licenses the milk contractor under s. 126.41 (1), unless the milk contractor reports no more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

126.44 (1) (c) 1. A contributing milk contractor who reports no more than $1,500,000 in annual milk payroll obligations 150,000 hundredweight of milk under s. 126.41 (6) (a) (bg).

296,70 Section 70. 126.44 (5) of the statutes is repealed and recreated to read:

126.44 (5) Reviewed or audited financial statement. A milk contractor filing a financial statement under sub. (1) or (2) may file either a reviewed financial statement or an audited financial statement, except that if the milk contractor reports more than 2,500,000 hundredweight of milk under s. 126.41 (6) (bg), the milk contractor shall file an audited financial statement.

126.45 (3) (a) A milk contractor who is required to file security under s. 126.47 (1) (a) is disqualified from the fund until the department releases that security under s. 126.47 (7) (a). This paragraph does not apply, during the period beginning on May 1, 2002, and ending on April 30, 2007, to a qualified producer agent who files security under s. 126.47 (3) (a) 3.

296,72 Section 72. 126.45 (3) (b) of the statutes is renumbered 126.45 (3) (b) (intro.) and amended to read:

126.45 (3) (b) (intro.) A milk contractor is disqualified from the fund if the department denies does any of the following:

1. Denies, suspends, or revokes the milk contractor's license.

126.45 (3) (b) 2. Issues an order under s. 126.85 disqualifying the milk contractor from the fund.

126.45 (4) (a) A milk contractor disqualified under sub. (3) (c) (b) 2. may not engage in any activities for which a license is required under s. 126.41 (1) (a) if the milk contractor files an annual, quarterly, or interim financial statement under s. 126.44 that shows a current ratio of less than 1.25 to 1.0, a debt to equity ratio of more than 2.0 to 1.0, or negative equity.

126.45 (5) Notice to producers. A milk contractor who is disqualified under sub. (3) shall immediately give written notice of the disqualification to all milk producers and producer agents to whom the milk contractor has unpaid milk payment obligations. The department may by rule or order specify the form and content of the notice.

296,77 Section 77. 126.46 (1) (intro.) of the statutes is renumbered 126.46 (1) and amended to read:

126.46 (1) General. A contributing milk 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 in the amount specified by the department by rule specifies a different assessment:.

296,80 Section 80. 126.46 (5m) (intro.) of the statutes is amended to read:

126.46 (5m) Reduced assessment for certain milk contractors filing security. (intro.) If a contributing milk contractor files security under s. 126.47 (1) (b), the contributing milk contractor's fund assessment is the amount determined specified under sub. (1) reduced by an amount determined as follows:

296,81 Section 81. 126.46 (5m) (a) of the statutes is renumbered 126.46 (5m) (a) (intro.) and amended to read:

126.46 (5m) (a) (intro.) Divide the amount of security that the milk contractor is required to file as determined under s. 126.47 (3) (b) by the amount of the milk contractor's estimated default exposure, as defined in s. 126.47 (1) (b) 1. 75 percent of the following:

296,82 Section 82. 126.46 (5m) (a) 1. and 2. of the statutes are created to read: