ATCP 101.20(1)(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. ATCP 101.20(2m)(2m) “Contingent financial backing amount” means the amount of contingent financial backing, if any, which the department holds under s. 126.06, Stats. ATCP 101.20 HistoryHistory: 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 101.22ATCP 101.22 General requirements. A vegetable contractor shall comply with applicable requirements in ch. 126, Stats. ATCP 101.22 HistoryHistory: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03. ATCP 101.23ATCP 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.: ATCP 101.23(2)(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. ATCP 101.23(3)(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: ATCP 101.23(4)(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. ATCP 101.23(5)(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. ATCP 101.23(6)(6) A surcharge of $100 if a renewal applicant fails to renew a license by the license expiration date of January 31. ATCP 101.23 HistoryHistory: CR 07-073: cr. Register December 2008 No. 636, eff. 1-1-09. ATCP 101.24(1)(1) General. A vegetable contractor’s financial statement, filed under s. 126.58, Stats., shall comply with this section and s. 126.58, Stats. ATCP 101.24(2)(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. ATCP 101.24(3)(3) Liability classification. A financial statement shall classify, as current liabilities, notes payable that do not have specific due dates. ATCP 101.24(4)(a)(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: ATCP 101.24(4)(a)1.1. 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. ATCP 101.24(4)(a)2.2. Every note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee. ATCP 101.24 NoteNote: “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. ATCP 101.24(4)(a)3.3. 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. ATCP 101.24(4)(b)(b) A financial statement shall include at least one of the following: ATCP 101.24(4)(b)1.1. 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. ATCP 101.24(5)(5) Attachments. If information required under this section is provided in an attachment to a reviewed or audited financial statement, the following requirements apply: ATCP 101.24(5)(a)(a) The attachment shall be prepared on the letterhead of the certified public accountant who reviewed or audited the financial statement. ATCP 101.24(5)(b)(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. ATCP 101.24 HistoryHistory: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03. ATCP 101.245ATCP 101.245 Vegetable contractor fund assessments. ATCP 101.245(1)(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). ATCP 101.245(2)(a)(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: ATCP 101.245(2)(a)2.2. 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. ATCP 101.245(2)(b)(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: ATCP 101.245(2)(b)2.2. 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. ATCP 101.245(2)(c)(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: ATCP 101.245(2)(c)2.2. 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. ATCP 101.245(2)(d)(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: ATCP 101.245(2)(d)1.1. $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. ATCP 101.245(2)(d)2.2. 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. ATCP 101.245(3)(3) Reduced assessment. A contributing vegetable contractor’s annual fund assessment under sub. (1) is reduced by the following applicable amounts: ATCP 101.245(3)(b)(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). ATCP 101.245(4)(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: ATCP 101.245(4)(a)(a) The vegetable contractor was classified as a contributing vegetable contractor in each of the 5 license years immediately preceding that license year. ATCP 101.245(4)(b)(b) The fund balance attributable to vegetable contractors was at least $1.5 million on November 30 of the last preceding license year. ATCP 101.245(4)(c)(c) The overall fund balance was at least $11 million on November 30 of the last preceding license year. ATCP 101.245 HistoryHistory: 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 101.25ATCP 101.25 Fund assessment temporarily affected by merger or acquisition; partial refund. ATCP 101.25(1)(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: ATCP 101.25(1)(a)(a) The contractor paid the full amount of the assessment, including any late payment penalties that apply under s. 126.60 (6) (d), Stats. ATCP 101.25(1)(c)(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. ATCP 101.25(1)(d)(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. ATCP 101.25(1)(e)(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. ATCP 101.25(1)(f)(f) In the license year immediately following the license year for which the contractor paid the assessment, the sum of the contractor’s current ratio assessment rate under s. 126.60 (2), Stats., and debt to equity assessment rate under s. 126.60 (4), Stats., declines by at least 50% compared to the license year for which the contractor paid the assessment. ATCP 101.25(1)(g)(g) The contractor requests the refund in writing, by February 1 of the contractor’s next license year. ATCP 101.25(2)(2) Refund amount. The amount of the refund under sub. (1) shall equal 75% of the difference between the assessment amount paid by the vegetable contractor and the assessment amount required of the vegetable contractor in the next license year. ATCP 101.25(3)(3) Refund paid as credit against next year’s assessment. ATCP 101.25(3)(a)(a) The department shall pay the refund under sub. (1) as a credit against the contractor’s assessment for the next license year. The department shall apportion the credit, pro rata, against the quarterly assessment installments required of the contractor under s. 126.60 (6), Stats., in that next license year. If the credit exceeds the total assessment required of the contractor in that next license year, the department shall credit the balance in the same fashion against assessments required of the contractor in subsequent consecutive license years, except that the department may not grant a credit in more than 4 subsequent license years. ATCP 101.25(3)(b)(b) The department may not pay any refund under sub. (1), except in the manner prescribed in par. (a). The department may not pay the refund to any person other than the contractor who paid the original assessment on which the refund is given. ATCP 101.25 HistoryHistory: Emerg. cr. eff. 1-29-04; CR 04-030: cr. Register September 2004 No. 585, eff. 10-1-04. ATCP 101.255ATCP 101.255 Reduced fund assessment for contributing vegetable contractors who also maintain security. ATCP 101.255(1)(1) Voluntary Security. A licensed vegetable contractor may at any time file security with the department, regardless of whether the vegetable contractor is required to file security. Except as provided in sub. (2), a voluntary security filing under this subsection does not relieve a vegetable contractor of any other obligation to file security or pay fund assessments. ATCP 101.255 NoteNote: A vegetable contractor who files voluntary security under sub. (1) may be eligible for a reduction in fund assessments under sub. (2), and may be able to make a more favorable disclosure to producers under s. ATCP 101.26 (2). ATCP 101.255(2)(2) Reduced assessment. If, for the duration of a license year, a contributing vegetable contractor maintains security under sub. (1) in an amount that is at least equal to the vegetable contractor’s estimated default exposure less the maximum fund reimbursement amount, the vegetable contractor’s annual fund assessment under s. 126.60, Stats., for that year is reduced by an amount that is determined as follows: ATCP 101.255(2)(a)(a) Subtract the maximum fund reimbursement from the vegetable contractor’s estimated default exposure. ATCP 101.255(2)(b)(b) Divide the result in par. (a) by the vegetable contractor’s estimated default exposure. ATCP 101.255(2)(c)(c) Multiply the result in par. (b) by the amount of the vegetable contractor’s annual fund assessment under s. 126.60 (1), Stats., disregarding any assessment reduction under s. 126.60 (5m), Stats. ATCP 101.255 HistoryHistory: Emerg. cr. eff. 4-29-04; CR 04-030: cr. Register September 2004 No. 585, eff. 10-1-04; CR 05-068: r. and recr. (1), am. (2) (intro.) Register April 2006 No. 604, eff. 5-1-06; correction in (2) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666.
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