Chapter 126

126.47(6)(d) (d) If a milk contractor fails to comply with the department’s demand for security under this subsection, the milk contractor shall give written notice of that fact to all milk producers and producer agents from whom the contractor procures producer milk in this state. If the milk contractor fails to give accurate notice under this paragraph within 5 days after the deadline for filing security under par. (b) has passed, the department shall promptly notify milk producers and producer agents by publishing a class 3 notice under ch. 985. The department may also give individual notice to those milk producers or producer agents of whom the department is aware.

126.47(6)(e) (e) If a milk contractor fails to comply with the department’s demand for security under this subsection, the department may do any of the following:

126.47(6)(e)1. 1. Issue a summary order under s. 126.85 (2).

126.47(6)(e)2. 2. Suspend or revoke the milk contractor’s license.

126.47(7) (7) Releasing security.

126.47(7)(a) (a) The department may release security filed under sub. (1) (a), except for any amount of security that the milk contractor is required to file under sub. (1) (ae) or (b), if any of the following applies:

126.47(7)(a)1. 1. The milk contractor reports not more than 150,000 hundredweight of milk under s. 126.41 (6) (bg) for at least 2 consecutive years and the milk contractor pays the fund assessment installment amount that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the date when the most recent installment under s. 126.46 was due.

126.47(7)(a)2. 2. The milk contractor’s annual financial statement under s. 126.44 shows positive equity for at least 2 consecutive years and the milk contractor pays the fund assessment installment amount that would have been required of the milk contractor if the milk contractor had been a contributing milk contractor on the date when the most recent installment under s. 126.46 was due.

126.47(7)(ae) (ae) The department may release security filed under sub. (1) (ae), except for any amount of security that the milk contractor is required to file under sub. (1) (a) or (b), if any of the following applies:

126.47(7)(ae)1. 1. The milk contractor has not had any deferred payment contract obligations since the beginning of the milk contractor’s last completed fiscal year.

126.47(7)(ae)2. 2. The milk contractor files 2 consecutive annual financial statements under s. 126.44 showing that the milk contractor meets the applicable equity requirement and debt to equity ratio under sub. (1) (ae).

126.47(7)(am) (am) The department may release security filed under sub. (1) (b), except for any amount of security that the milk contractor is required to file because sub. (1) (a) or (ae) applies to the milk contractor, if the milk contractor files 2 consecutive annual financial statements under s. 126.44 showing that the milk 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 2.0 to 1.0.

126.47(7)(c) (c) The department may release security to the extent that the security exceeds the amount required under sub. (3).

126.47(7)(d) (d) The department may release security if the milk contractor files alternative security, of equivalent value, that the department approves.

126.47(7)(e) (e) The department shall release security if the milk contractor has gone out of business and paid all milk payroll obligations in full.

126.47 History History: 2001 a. 16; 2003 a. 38, 238, 320; 2005 a. 253; 2009 a. 296; 2017 a. 155, ss. 28 to 30, 46 to 62.

126.48 126.48 Milk contractors; payments to producers.

126.48(1) (1) First monthly payment. Except as provided under the terms of a deferred payment contract that satisfies the requirements under s. 126.485, by the 4th day of each month, a milk contractor shall pay for producer milk received during the first 15 days of the preceding month. The milk contractor shall base the payment on an estimated price that is at least 80 percent of the class III price published by the regional federal milk market administrator for the month preceding the month in which the milk is received, or 80 percent of the contract price, whichever is greater.

126.48(2) (2) Second monthly payment. Except as provided under the terms of a deferred payment contract that satisfies the requirements under s. 126.485, by the 19th day of each month, a milk contractor shall pay the balance due for producer milk received during the preceding month.

126.48 History History: 2001 a. 16; 2017 a. 155.

126.485 126.485 Milk contractors; deferred payment contracts.

126.485(1) (1) Contract in writing. A milk contractor may not procure milk from any milk producer or producer agent under a deferred payment contract before the contract is reduced to writing and signed by the parties. The milk contractor shall provide a copy of the signed contract to the other party.

126.485(2) (2) Contents of contract. A milk contractor may not enter into a deferred payment contract unless the deferred payment contract includes all of the following:

126.485(2)(a) (a) A unique contract identification number.

126.485(2)(b) (b) The specific payments required under s. 126.48 (1) or (2), or portion thereof, that are deferred under the contract.

126.485(2)(c) (c) The date by which the milk contractor agrees to make full payment for the milk.

126.485(2)(d) (d) The milk contractor’s permanent business location.

126.485(2)(e) (e) A statement in clear and conspicuous print immediately above the contract signature line stating: “The milk contractor (buyer) becomes the owner of any milk that the producer or producer agent (seller) delivers to the milk contractor under this contract. The producer or producer agent relinquishes ownership and control of the milk, and may become an unsecured creditor pending payment.”

126.485(2)(f) (f) A statement that the milk contractor deducts the deferred payment contract assessment established by the department by rule under s. 126.46 (1) from the amount paid to a milk producer or producer agent under a deferred payment contract.

126.485(2)(g) (g) Other information required under this section by the department.

126.485(3) (3) Rule making. The department may promulgate rules to modify the requirements for the contents of deferred payment contracts under sub. (2).

126.485(4) (4) Payment due dates.

126.485(4)(a) (a) The due date by which a milk contractor agrees to make full payment for milk under a deferred payment contract may not be more than 120 days after the date on which the milk contractor’s payments would have been due under s. 126.48 (2).

126.485(4)(b) (b) A milk contractor shall make full payment under a deferred payment contract by the due date specified in the contract under sub. (2) (c), or if the parties agree by another date that satisfies par. (a).

126.485(5) (5) Deferred payment contract assessment. From the amount that a milk contractor pays to a milk producer or producer agent under a deferred payment contract, the milk contractor shall deduct a deferred payment contract assessment. The assessment shall equal the total amount owed under the contract before the assessment is deducted, multiplied by the deferred payment assessment rate that applies under s. 126.46 (1) when the contract is made. The milk contractor shall disclose the assessment amount.

126.485 History History: 2017 a. 155.

126.487 126.487 Payment explanation. The department may, by rule, require a milk contractor to provide a milk producer or producer agent with a written explanation of each payment under s. 126.48 or of each deferred payment under s. 126.485. The department may specify the content of the explanation, including information related to any of the following:

126.487(1) (1) Milk contractor identification.

126.487(2) (2) Milk producer or producer agent identification.

126.487(3) (3) Pay period.

126.487(4) (4) Volume of milk received.

126.487(5) (5) Grade of milk.

126.487(6) (6) Milk test results.

126.487(7) (7) Milk price and adjustments.

126.487(8) (8) Gross amount due.

126.487(9) (9) Average gross pay per hundredweight less hauling charges.

126.487(10) (10) Net amount due.

126.487(11) (11) Deductions and assignments.

126.487 History History: 2017 a. 155, s. 65; 2017 Stats. s. 126.487.

126.49 126.49 Milk contractors; records and reports.

126.49(1) (1) Required records. A milk contractor shall keep accurate records and accounts of milk receipts, payments for milk received, and amounts owed to milk producers. The department may, by rule, specify records that a milk contractor must keep.

126.49(2) (2) Required reports. The department may, by rule, require a milk contractor to file with the department periodic reports of information needed for the administration of this chapter.

126.49(3) (3) Records retention; inspection. A milk contractor shall retain records required under sub. (1) for at least 6 years after the records are created. A milk contractor shall make the records available to the department for inspection and copying upon request.

126.49 History History: 2001 a. 16.

126.50 126.50 Milk contractors; prohibited practices. No milk contractor, or officer, employee, or agent of a milk contractor, may do any of the following:

126.50(1) (1) Falsify any record or account, or conspire with any other person to falsify a record or account.

126.50(2) (2) Make any false or misleading representation to the department.

126.50(3) (3) If the milk contractor is licensed under s. 126.41 (1), engage in any activity that is inconsistent with representations made in the milk contractor’s annual license application.

126.50(4) (4) Make any false or misleading representation to a milk producer or producer agent related to matters regulated under this chapter.

126.50(5) (5) Fail to file the full amount of security required under s. 126.47 (6) by the date that the department specifies.

126.50(6) (6) Assault, threaten, intimidate, or otherwise interfere with an officer, employee, or agent of the department in the performance of his or her duties.

126.50 History History: 2001 a. 16; 2009 a. 296.

126.51 126.51 Rules for qualified producer agents. The department shall promulgate rules specifying requirements for qualified producer agents, including a requirement that a qualified producer agent have a written contract with each milk producer from whom the qualified producer agent procures milk in this state and that the contract disclose all of the following:

126.51(1) (1) That the producer agent does not take title to the milk producer’s milk.

126.51(2) (2) That the producer agent holds all milk receipts in trust for milk producers.

126.51(3) (3) That the producer agent’s obligations to milk producers are not secured or indemnified under this chapter to the same degree as are the obligations of other milk contractors.

126.51 History History: 2001 a. 16.

subch. VI of ch. 126 SUBCHAPTER VI

VEGETABLE CONTRACTORS

Subch. VI of ch. 126 Cross-reference Cross-reference: See also ch. ATCP 101, Wis. adm. code.

126.55 126.55 Definitions. In this subchapter:

126.55(1) (1) “Cash on delivery” means cash payment of the full agreed price for processing vegetables at the time of delivery or, if the vegetables are graded, within 72 hours after the time of delivery.

126.55(2) (2) “Cash payment” means payment in any of the following forms:

126.55(2)(a) (a) Currency.

126.55(2)(b) (b) A cashier’s check, or a check that a bank issues and certifies.

126.55(2)(c) (c) A wire transfer.

126.55(2)(d) (d) Simultaneous barter.

126.55(3) (3) “Contract obligation” means the net amount, whether paid or unpaid, that a vegetable contractor owes a vegetable producer or producer agent under a vegetable procurement contract. “Contract obligation” includes a net amount owed for unharvested acreage.

126.55(4) (4) “Contributing vegetable contractor” means a vegetable contractor who is licensed under s. 126.56 (1), who either has paid one or more quarterly installments under s. 126.60 (6) or is required to contribute to the fund, but the first quarterly installment under s. 126.60 (6) is not yet due, who has not elected not to participate in the fund under s. 126.595 (1), and who is not disqualified under s. 126.59 (2).

126.55(6) (6) “Current ratio” means the ratio of the value of current assets to the value of current liabilities, calculated according to s. 126.58 (6) (c) 1.

126.55(7) (7) “Debt to equity ratio” means the ratio of the value of liabilities to equity, calculated according to s. 126.58 (6) (c) 2.

126.55(8) (8) “Deferred payment contract” means a vegetable procurement contract in which the vegetable producer or a producer agent agrees to accept payment after January 31 for processing vegetables harvested during the previous calendar year.

126.55(9) (9) “Disqualified vegetable contractor” means a vegetable contractor who is disqualified from the fund under s. 126.59 (2).

126.55(10) (10) “Food processing” has the meaning given in s. 97.29 (1) (g).

126.55(10m) (10m) “License year” means the period beginning on February 1 and ending on the following January 31.

126.55(10r) (10r) “Processing potato buyer” means a vegetable contractor who purchases processing potatoes and no other processing vegetables.

126.55(10t) (10t) “Processing potatoes” means potatoes grown or sold for use in food processing, regardless of whether those potatoes are actually harvested or processed as food.

126.55(11) (11) “Processing vegetables” means vegetables grown or sold for use in food processing, regardless of whether those vegetables are actually harvested or processed as food. “Processing vegetables” includes sweet corn grown or sold for use in food processing, but does not include grain.

126.55(12) (12) “Producer agent” means a person who, without taking title to vegetables, acts on behalf of a vegetable producer to market or accept payment for processing vegetables that the vegetable producer grows in this state. “Producer agent” does not include any of the following: