126.45 (1) (a). (b) To qualify for a lower fund assessment under s. 126.46. (3) QUARTERLY FINANCIAL STATEMENTS. A milk contractor licensed under s. 126.41 (1) who is not a contributing milk contractor shall file quarterly financial statements with the department for the first 3 quarters in each of the milk contractor’s fiscal years. The milk contractor shall file each quarterly financial statement no later than 60 days after the end of the fiscal quarter to which the financial statement pertains. (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. (6) ACCOUNTING PERIOD. A milk contractor filing an annual financial statement under sub. (1) or (2) shall file a financial statement that covers the milk contractor’s last completed fiscal year unless the milk contractor has been in business for less than one year. (6m) INTERIM FINANCIAL STATEMENT. The department may, at any time, require a milk contractor licensed under s. 126.41 (1) to file an interim financial statement with the department. An in-
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terim financial statement need not be a reviewed financial statement or an audited financial statement. (7) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. (a) Except as provided in par. (b), a milk contractor filing an annual financial statement under this section shall file a financial statement that is prepared according to generally accepted accounting principles. (b) If a milk contractor is a sole proprietor and the milk contractor’s financial statement is not audited, the milk contractor shall file a financial statement that is prepared on a historical cost basis. (8) FINANCIAL STATEMENT CONTENTS. (a) Except as provided in par. (b), a milk contractor filing a financial statement under this section shall file a financial statement that consists of a balance sheet, income statement, equity statement, statement of cash flows, notes to those statements, and any other information required by the department. If the milk contractor is a sole proprietor, the milk contractor shall file his or her business and personal financial statements. (b) If a milk contractor has been in business for less than one year, the milk contractor may file an annual financial statement under sub. (1) or (2) consisting of a balance sheet and notes. A milk contractor may file a quarterly financial statement under sub. (3) consisting of a balance sheet and income statement. (c) A milk contractor filing a financial statement under this section shall include in the financial statement, or in an attachment to the financial statement, calculations of all of the following: 1. The milk contractor’s current ratio, excluding any items required to be excluded under sub. (9). 2. The milk contractor’s debt to equity ratio, excluding any items required to be excluded under sub. (9). (9) ITEMS EXCLUDED. A milk contractor may not include any of the following items in the calculations under sub. (8) (c), unless the department specifically approves their inclusion: (a) A nontrade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals, unless the note or account receivable is secured by a first priority security interest in real or personal property. (b) A note or account receivable from a parent organization, a subsidiary, or an affiliate other than an employee. (c) A note or account that has been receivable for more than one year, unless the milk contractor has established an equal offsetting reserve for uncollectible notes and accounts receivable. (d) A liability and the corresponding impact to equity resulting from the recording of a loss as a component of other comprehensive income due to the recognition of the funding status of a defined benefit pension plan. (e) An asset and the corresponding liability that represent an amount that is collectible from and owed to the milk contractor itself, as proven by the milk contractor. (10) ENTITY COVERED. A person filing a financial statement under this section may not file, in lieu of that person’s financial statement, the financial statement of the person’s parent organization, subsidiary, predecessor, or successor. (11) DEPARTMENT REVIEW. The department may analyze a financial statement submitted under this section and may reject a financial statement that fails to comply with this section. History: 2001 a. 16; 2003 a. 238; 2009 a. 296; 2013 a. 20; 2017 a. 155.
126.45 Contributing milk contractors; disqualification. (1) REQUIRED CONTRIBUTORS. (a) Except as provided in sub. (3), a licensed milk contractor shall pay fund assessments
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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under s. 126.46 if the milk contractor does not file annual and quarterly financial statements under s. 126.44. (b) Except as provided in sub. (3), a licensed milk contractor shall pay fund assessments under s. 126.46 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. The milk contractor shall continue to pay fund assessments until the milk contractor files 2 consecutive annual financial statements under s. 126.44 that show a current ratio of at least 1.25 to 1.0, positive equity, and a debt to equity ratio of not more than 2.0 to 1.0. (2) VOLUNTARY CONTRIBUTORS. Except as provided in sub. (3), a licensed milk contractor who is not required to pay fund assessments under s. 126.46 may elect to do so. (3) DISQUALIFIED CONTRACTORS. (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.