Wisconsin Legislature: ATCP 101.22

History: Cr. Register, December, 1992, No. 444, eff. 1-1-93.

ATCP 101.07 Prohibited practices. No contractor may do any of the following:

(1) Fail to pay a producer according to the terms of a vegetable procurement contract.

(2) Knowingly misrepresent the terms of a vegetable procurement contract, the procedures used under the contract, or the services provided by the contractor under the contract, in order to induce a producer to sign a vegetable procurement contract.

(3) Conspire with other contractors to fix prices or restrain trade in the procurement of vegetables from producers.

(4) Fail or refuse to offer a vegetable procurement contract to a producer because the producer has done any of the following:

(a) Filed a complaint with the contractor or a government agency.

(b) Requested arbitration of a contract dispute.

(d) Joined an association of producers, advised or attempted to organize producers, or participated in any discussion, meeting or action related to vegetable procurement or vegetable industry issues.

(e) Negotiated or attempted to enforce the terms of any vegetable procurement contract, or represented producer interests in any matter related to vegetable procurement or vegetable industry issues.

(f) Sought government action related to vegetable procurement, or testified or participated in any way in the development or implementation of laws related to vegetable procurement or vegetable industry issues.

(5) Charge a producer for defective seed planted under a vegetable procurement contract if the seed supplier reimburses the contractor for the cost of that seed.

History: Cr. Register, December, 1992, No. 444, eff. 1-1-93.

Subchapter II — Financial Standards and Security

Note: This subchapter is adopted under authority of ss. 93.07 (1), 126.49, 126.51 and 126.81, Stats., and interprets ch. 126, Stats. The Wisconsin department of agriculture, trade and consumer protection may enforce this subchapter under subch. VIII of ch. 126, Stats.

ATCP 101.20 Definitions. In this subchapter:

(1) “Affiliate” has the meaning given in s. 126.01 (1), Stats. “Affiliate” includes a person who has significant control or influence over the business entity.

(2) “Audited financial statement” has the meaning given in s. 126.01 (3), Stats.

(2m) “Contingent financial backing amount” means the amount of contingent financial backing, if any, which the department holds under s. 126.06, Stats.

(3) “Contributing vegetable contractor” has the meaning given in s. 126.55 (4), Stats.

(3m) “Estimated default exposure” has the meaning given in s. 126.61 (1) (b) 1., Stats.

(3r) “Maximum fund reimbursement” means the deductible amount specified in s. 126.72 (3), Stats.

(4) “Producer agent” has the meaning given in s. 126.55 (12), Stats.

(5) “Reviewed financial statement” has the meaning given in s. 126.01 (20), Stats.

(6) “Vegetable contractor” has the meaning given in s. 126.55 (14), Stats.

(7) “Vegetable procurement contract” has the meaning given in s. 126.55 (15), Stats.

(8) “Vegetable producer” has the meaning given in s. 126.55 (16), Stats.

History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; CR 05-068: am. (1), cr. (2m), (3g), (3m) and (3r) Register April 2006 No. 604, eff. 5-1-06; CR 07-073: r. (3g), am. (3r) Register December 2008 No. 636, eff. 1-1-09; correction in (3m) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666.

ATCP 101.22 General requirements. A vegetable contractor shall comply with applicable requirements in ch. 126, Stats.

History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

ATCP 101.23 Vegetable contractor license fees. A person applying for an annual vegetable contractor license under s. 126.56, Stats., shall pay all of the following license fees and surcharges, rather than the license fees and surcharges provided in s. 126.56 (4), Stats.:

(1) A nonrefundable license processing fee of $25.

(2) A fee of $25 plus 8.75 cents for each $100 in contract obligations reported under s. 126.56 (9) (a), Stats., less any fee credits for which the vegetable contractor qualifies under s. 126.56 (6), Stats. This subsection does not apply to a processing potato buyer that has elected under s. 126.595 (1), Stats., not to participate in the fund.

(3) For a processing potato buyer that has elected under s. 126.595 (1), Stats., not to participate in the fund, a fee equal to the lesser of the following amounts:

(a) $25 plus 8.75 cents for each $100 in contract obligations reported under s. 126.56 (9) (a), Stats.

(b) $2,000.

(4) A surcharge of $500 if, within 365 days before submitting the license application, the applicant operated as a vegetable contractor without a license in violation of s. 126.56 (1), Stats. The applicant shall also pay any license fees, license surcharges, and fund assessments that are still due for the license year in which the applicant violated s. 126.56 (1), Stats.

(5) A surcharge of $100 if, within 365 days before submitting the license application, the applicant failed to file an annual financial statement required under s. 126.58 (1) (b), Stats., by the applicable deadline.

(6) A surcharge of $100 if a renewal applicant fails to renew a license by the license expiration date of January 31.

History: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09.

ATCP 101.24 Financial statement.

(1) General. A vegetable contractor’s financial statement, filed under s. 126.58, Stats., shall comply with this section and s. 126.58, Stats.

(2) Liability disclosures. A financial statement shall include a detailed description of all notes, mortgages and other long-term liabilities not due or payable within one year. The description shall be included in the financial statement notes or as an attachment to the financial statement. The description shall indicate the nature of the liabilities, the due dates and the payment terms.

(3) Liability classification. A financial statement shall classify, as current liabilities, notes payable that do not have specific due dates.

(4) Asset disclosures.

(a) A financial statement shall specifically identify and explain, in the financial statement notes or as an attachment to the financial statement, the following assets:

1. Every non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.

2. Every note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

Note: “Affiliate” as defined in s. ATCP 101.20 (1) means a person who has significant control or influence. Significant control or influence is a phrase used under generally accepted accounting principals to describe a related party that has sufficient ownership interest to influence the operating and financial policies of an entity.

3. Every note or account that has been receivable for more than one year, unless the vegetable contractor has established an offsetting reserve for uncollectible notes and accounts receivable.

(b) A financial statement shall include at least one of the following:

1. An allowance for doubtful or uncollectible receivables. The notes to the financial statement shall describe the method used to account for doubtful or uncollectible receivables.

2. A summary classifying the age of all notes and accounts receivable.

(5) Attachments. If information required under this section is provided in an attachment to a reviewed or audited financial statement, the following requirements apply:

(a) The attachment shall be prepared on the letterhead of the certified public accountant who reviewed or audited the financial statement.

(b) The certified public accountant who reviewed or audited the financial statement shall certify, in the attachment, whether the certified public accountant has reviewed or audited the attachment.

History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

ATCP 101.245 Vegetable contractor fund assessments.

(1) General. A contributing vegetable contractor shall pay an annual fund assessment for each license year. The annual fund assessment shall be calculated under this section, rather than under s. 126.60 (1), Stats. Except as provided in subs. (3) and (4), the annual fund assessment shall be calculated according to sub. (2).

(2) Assessment amount.

(a) A contributing vegetable contractor that reports less than $500,000 in contract obligations under s. 126.56 (9) (am), Stats., shall pay a fund assessment equal to the greater of the following amounts:

1. $100.

2. The sum of the amounts calculated under s. 126.60 (1) (a) and (b), Stats. If all of the contract obligations reported by the vegetable contractor under s. 126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then further divide this amount by 2.

(b) A contributing vegetable contractor that reports at least $500,000 but less than $4 million in contract obligations under s. 126.56 (9) (am), Stats., shall pay a fund assessment equal to the greater of the following amounts:

1. $200.

(c) A contributing vegetable contractor who reports $4 million or more in contract obligations under s. 126.56 (9) (am), Stats., shall pay a fund assessment equal to the greater of the following amounts:

1. $500.

(d) If the fund balance attributable to vegetable contractors is less than $800,000 on November 30 of the preceding license year, a contributing vegetable contractor shall pay the sum of the amount calculated under either (a), (b), or (c) and the lesser of:

1. $50,000. If all of the contract obligations reported by the vegetable contractor under s. 126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then this amount is $25,000.

2. The amount of contract obligations under s. 126.56 (9) (am), Stats., multiplied by 0.002. If all of the contract obligations reported by the vegetable contractor under s. 126.56 (9) (am), Stats., were made under written contracts where payments were required no more than 30 days after taking custody or control of the vegetables, then divide this amount by 2.

(3) Reduced assessment. A contributing vegetable contractor’s annual fund assessment under sub. (1) is reduced by the following applicable amounts:

(a) The amount calculated under s. 126.60 (5m), Stats., if the contributing vegetable contractor files security under s. 126.61 (1) (b), Stats.

(b) The amount of any refund that applies under s. ATCP 101.25. The refund shall be paid as a credit against the contributing vegetable contractor’s annual fund assessment for the next license year, as provided in s. ATCP 101.25 (3).

(4) Exemption. A contributing vegetable contractor is not required to pay any fund assessment under this section for a license year if all of the following apply:

(a) The vegetable contractor was classified as a contributing vegetable contractor in each of the 5 license years immediately preceding that license year.

(b) The fund balance attributable to vegetable contractors was at least $1.5 million on November 30 of the last preceding license year.

History: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09; corrections in (2) (a) 2., (b) 2., (c) 2., (3) (a) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666; EmR1803: emerg. am. (2) (a) (intro.), 2., (b) (intro.), 2., (c) (intro.), 2., cr. (2) (d), eff. 2-1-2018; CR 17-047: am. (2) (a) (intro.), 2., (b) (intro.), 2., (c) (intro.), 2., cr. (2) (d) Register November 2019 No. 767, eff. 12-1-19; correction in (2) (c) (intro.) made under s. 35.17, Stats., Register November 2019 No. 767.

ATCP 101.25 Fund assessment temporarily affected by merger or acquisition; partial refund.

(1) Partial refund of assessment. The department may refund part of an annual fund assessment paid by a contributing vegetable contractor under s. 126.60, Stats., if all of the following apply:

(a) The contractor paid the full amount of the assessment, including any late payment penalties that apply under s. 126.60 (6) (d), Stats.

(b) The contractor is the surviving entity in a merger under s. 179.77, 180.1101, 183.1201 or 185.61, Stats., or has acquired property pursuant to a sale of assets under s. 180.1202, Stats.

(c) The assessment was based on the contractor’s financial statement for the fiscal year in which the merger or acquisition under par. (b) took effect.

(d) The contractor’s financial statement, for the fiscal year in which the merger or acquisition under par. (b) took effect, caused the sum of the contractor’s current ratio assessment rate under s. 126.60 (2), Stats., and debt to equity ratio assessment rate under s. 126.60 (4), Stats., to increase by at least 100% compared to the preceding license year.

(e) The contractor’s annual financial statements, for the fiscal years immediately preceding and immediately following the fiscal year in which the merger or acquisition under par. (b) took effect, show positive equity, a current ratio of at least 1.25 to 1.00 and a debt to equity ratio of no more than 3.0 to 1.0.