Chapter 126

subch. I of ch. 126 SUBCHAPTER I

GENERAL

126.01 126.01 General definitions. In this chapter:

126.01(1) (1) “Affiliate” means any of the following persons:

126.01(1)(a) (a) An owner, major stockholder, partner, officer, director, member, employee, or agent of a contractor.

126.01(1)(b) (b) A person owned, controlled, or operated by a person under par. (a).

126.01(2) (2) “Asset” means anything of value owned by a person.

126.01(3) (3) “Audited financial statement” means a financial statement on which an independent certified public accountant licensed or certified under ch. 442 has done all of the following:

126.01(3)(a) (a) Stated that the financial statement presents fairly, in all material respects, the financial position of a contractor as of a specific date or for a specific period, according to one of the following:

126.01(3)(a)1. 1. Generally accepted accounting principles.

126.01(3)(a)2. 2. The historical cost basis method of accounting, if the financial statement is a sole proprietor’s personal financial statement and the financial statement is prepared on a historical cost basis.

126.01(3)(b) (b) Conducted an audit according to generally accepted auditing standards.

126.01(4) (4) “Balance sheet” means a statement of assets, liabilities, and equity on a specific date.

126.01(5) (5) “Contractor,” unless otherwise qualified, means any of the following:

126.01(5)(a) (a) A grain dealer, as defined in s. 126.10 (9).

126.01(5)(b) (b) A grain warehouse keeper, as defined in s. 126.25 (9).

126.01(5)(c) (c) A milk contractor, as defined in s. 126.40 (8).

126.01(5)(d) (d) A vegetable contractor, as defined in s. 126.55 (14).

126.01(6) (6) “Current assets” means cash and other assets, including trade or investment items, that may be readily converted into cash in the ordinary course of business within one year after the date as of which the value of those assets is determined.

126.01(7) (7) “Current liabilities” means those liabilities that are due within one year after the date as of which the value of those liabilities is determined.

126.01(8) (8) “Department” means the department of agriculture, trade and consumer protection.

126.01(9) (9) “Equity” means the value of assets less the value of liabilities.

126.01(10) (10) “Equity statement” means a report of the change in equity from the beginning to the end of the accounting period covered by the report.

126.01(11) (11) “Fund” means the agricultural producer security fund established under s. 25.463.

126.01(12) (12) “Generally accepted accounting principles” means the accounting standards adopted by the Financial Accounting Standards Board, except that for a business entity organized and operating outside the United States “generally accepted accounting principles” includes generally accepted foreign accounting standards that are substantially equivalent to standards adopted by the Financial Accounting Standards Board.

126.01(13) (13) “Grain” means corn, wheat, soybeans, oats, barley, rye, buckwheat, sorghum, flax seed, milo, sunflower seed, and mixed grain, as defined in 7 CFR 810.801, except that “grain” does not include any of the following:

126.01(13)(a) (a) Sweet corn or other canning crops for processing.

126.01(13)(b) (b) Seed corn, wheat, soybeans, oats, barley, rye, buckwheat, sorghum, flax seed, milo, sunflower seed, or mixed grain used or intended for use solely for planting purposes.

126.01(13)(c) (c) Corn, wheat, soybeans, oats, barley, rye, buckwheat, sorghum, flax seed, milo, sunflower seed, or mixed grain that has been rolled, cracked, roasted, or otherwise processed.

126.01(14) (14) “Income statement” means a report of the financial results of business operations for a specific period.

126.01(15) (15) “Individual” means a natural person.

126.01(16) (16) “Interim financial statement” means a statement of financial condition prepared for a period shorter than a fiscal year.

126.01(17) (17) “Milk” has the meaning given in s. 97.01 (10) (a).

126.01(18) (18) “Person,” notwithstanding s. 990.01 (26), means an individual, a corporation, a cooperative, an unincorporated cooperative association, a partnership, a limited liability company, a trust, a state agency, as defined in s. 20.001 (1), a local governmental unit, as defined in s. 66.0131 (1) (a), or other legal entity.

126.01(19) (19) “Producer,” unless otherwise qualified, means a grain producer, as defined in s. 126.10 (10), milk producer, as defined in s. 126.40 (10), or vegetable producer, as defined in s. 126.55 (16).

126.01(20) (20) “Reviewed financial statement” means a contractor’s financial statement, other than an audited financial statement, that is reviewed by an independent certified public accountant licensed or certified under ch. 442.

126.01(21) (21) “Security” means security filed or maintained under s. 126.16, 126.31, 126.47, or 126.61.

126.01(22) (22) “Sole proprietor” means a contractor who is an individual.

126.01(23) (23) “Statement of cash flows” means a report of cash receipts and cash disbursements from operating, investing, and financing activities, including an explanation of changes in cash and cash equivalents for the accounting period covered by the report.

126.01(24) (24) “Vegetable” means any vegetable that is grown or sold for use in food processing, whether or not the vegetable is actually processed as food. “Vegetable” includes green beans, kidney beans, lima beans, romano beans, wax beans, beets, cabbage, carrots, celery, cucumbers, onions, peas, potatoes, spinach, squash, and sweet corn, but does not include grain.

126.01 History History: 2001 a. 16; 2005 a. 441; 2015 a. 242; 2017 a. 155.

subch. II of ch. 126 SUBCHAPTER II

AGRICULTURAL PRODUCER SECURITY FUND

126.05 126.05 Agricultural producer security fund.

126.05(1) (1) The fund is a public trust and shall be administered to secure payments to producers. Moneys deposited into the fund may be used only for the purposes of this chapter.

126.05(2) (2) The department shall deposit into the fund all fees, surcharges, assessments, reimbursements, and proceeds of contingent financial backing that the department collects under this chapter. The department shall keep a record by contractor and industry, of all deposits into the fund. The department shall keep a record by industry of all payments from the fund.

126.05 History History: 2001 a. 16; 2003 a. 38; 2009 a. 296.

126.06 126.06 Contingent financial backing.

126.06(1) (1) Department may acquire. Using moneys appropriated under s. 20.115 (1) (v), the department may acquire contingent financial backing to secure payment under s. 126.72 (2) of claims against contributing contractors, as defined in s. 126.68 (1). The contingent financial backing may be in one or more of the following forms:

126.06(1)(a) (a) A surety bond.

126.06(1)(b) (b) A contract to provide a cash loan to the fund whenever the department requests a loan payable as provided in sub. (3).

126.06(1)(c) (c) Trade credit insurance.

126.06(1)(d) (d) Any other form that the department determines is appropriate.

126.06(2) (2) Amount.

126.06(2)(a) (a) Except as provided in par. (b), the department may determine the amount of any contingent financial backing that it obtains under sub. (1), up to the amount that, in the department’s judgment, is sufficient to meet reasonably foreseeable needs under s. 126.72 (2). In making this determination, the department shall consider acquisition costs and repayment liabilities.

126.06(2)(b) (b) The department may not acquire contingent financial backing in an amount that exceeds $17,000,000, unless the department establishes a different maximum amount by rule.

126.06(3) (3) Repayment. The department shall pay principal and interest costs of any loan provided under sub. (1) (b) only from the appropriation from the agricultural producer security fund under s. 20.115 (1) (wc).

126.06 History History: 2001 a. 16; 2003 a. 38; 2009 a. 296.

subch. III of ch. 126 SUBCHAPTER III

GRAIN DEALERS

Subch. III of ch. 126 Cross-reference Cross-reference: See also ch. ATCP 99, Wis. adm. code.

126.10 126.10 Definitions. In this subchapter:

126.10(1) (1) “Cash on delivery” means full cash payment for grain when the grain dealer takes custody or control of the grain.

126.10(2) (2) “Cash payment” means payment in any of the following forms:

126.10(2)(a) (a) Currency.

126.10(2)(b) (b) A cashier’s check or a check that a bank issues and certifies.

126.10(2)(c) (c) A wire transfer.

126.10(2)(d) (d) Simultaneous barter.

126.10(3) (3) “Contributing grain dealer” means a grain dealer who is licensed under s. 126.11, who either has paid one or more quarterly installments under s. 126.15 (7) or is required to contribute to the fund, but the first quarterly installment under s. 126.15 (7) is not yet due, and who is not disqualified from the fund under s. 126.14 (2).

126.10(4) (4) “Current ratio” means the ratio of the value of current assets to the value of current liabilities, calculated according to s. 126.13 (6) (c) 1.

126.10(5) (5) “Debt to equity ratio” means the ratio of the value of liabilities to equity, calculated according to s. 126.13 (6) (c) 2.

126.10(6) (6) “Deferred payment contract” means a contract for the procurement of grain under which a grain dealer takes custody or control of producer grain more than 7 days before paying for the grain in full. “Deferred payment contract” includes a deferred price contract.

126.10(7) (7) “Deferred price contract” means a contract for the procurement of grain under which a grain dealer takes custody or control of producer grain more than 7 days before the price of that grain must be determined under the contract.

126.10(8) (8) “Disqualified grain dealer” means a grain dealer who is disqualified from the fund under s. 126.14 (2).

126.10(9) (9) “Grain dealer” means a person who buys producer grain or who markets producer grain as a producer agent. “Grain dealer” does not include any of the following:

126.10(9)(a) (a) A person who merely brokers a contract between a grain producer and a grain dealer without becoming a party to the contract, taking control of grain, or accepting payment on behalf of the grain producer.

126.10(9)(b) (b) A person who merely buys or sells grain on a board of trade or commodity exchange.

126.10(10) (10) “Grain producer” means a person who grows grain.

126.10(10m) (10m) “License year” means the period beginning on September 1 and ending on the following August 31.

126.10(11) (11) “Procure grain” means to buy grain or acquire the right to market grain.

126.10(12) (12) “Procure producer grain in this state” means any of the following:

126.10(12)(a) (a) To buy producer grain for receipt in this state.

126.10(12)(b) (b) To acquire the right to market producer grain grown in this state.

126.10(13) (13) “Producer agent” means a person who acts on behalf of a grain producer to market or accept payment for the grain producer’s grain without taking title to that grain, including a person who uses a producer trust fund to market or accept payment for producer grain. “Producer agent” does not include any of the following:

126.10(13)(a) (a) A person who merely brokers a contract between a grain producer and a grain dealer, without becoming a party to the contract, taking control of grain, or accepting payment on behalf of the grain producer.

126.10(13)(b) (b) A person who merely holds or transports grain for a grain producer without marketing the grain or accepting payment on behalf of the grain producer.

126.10(14) (14) “Producer grain” means grain that is owned by or held in trust for one or more grain producers. “Producer grain” includes grain that a producer agent markets for a grain producer, without taking title to the grain.

126.10 History History: 2001 a. 16.