○ It eliminated, as a form of security that may be filed with the Department, a security interest in grain inventory or accounts receivable.
Monthly Reports of Grain Purchases
Under current law, certain grain dealers who fail to meet minimum financial standards must file monthly reports with the Department showing amounts of grain purchased. 1995 Wis. Act 42 extended this monthly reporting requirement to class B grain dealers who use “deferred payment” or “deferred price” contracts (if they fail to meet minimum financial standards). The Department uses the monthly reports to monitor the adequacy of the security filed by grain dealers. This rule incorporates the statutory reporting requirements.
“Deferred Payment” and “Deferred Price” Contracts
“Deferred payment” and “deferred price” contracts, if not properly managed, can create serious financial risks. 1995 Wis. Act 42 made the following changes which are incorporated in this rule:
○ The amount of security required of grain dealers depends, in part, on their use of “deferred payment” or “deferred price” contracts.
○ A grain purchase contract must be in writing unless the grain dealer pays within 7 days. The new 7-day grace period recognizes operational realities in the grain business.
○ A grain dealer must make full and final payment under a “deferred payment” or “deferred price” contract by a specified payment date which is not more than 180 days after the contract price is determined.
Grain Dealer Disclosures to Producers
Under current rules, a grain dealer must disclose to grain producers the basis on which the grain dealer is licensed. As a result of the statutory changes made by 1995 Wis. Act 42, the current disclosures are no longer fully accurate. This rule simplifies and shortens the disclosures which grain dealers must make, and modifies the disclosures to make them consistent with current law.
Ownership of Grain
This rule clarifies that when a grain owner delivers grain to a person who is both a warehouse keeper and a grain dealer, the grain owner retains ownership rights until one of the following occurs:
○ The recipient acquires title to the grain pursuant to a sales contract that is documented by a purchase receipt or other writing.
○ The grain owner transfers title to a third person.
Fee Changes; General
Under the grain security program, the Department:
○ Licenses grain warehouse keepers and grain dealers.
○ Reviews annual financial statements for compliance with minimum financial standards.
○ Demands security from warehouse keepers and grain dealers who fail to meet minimum financial standards. The Department holds the security for the benefit of producers in the event that a grain warehouse keeper or grain dealer defaults in its obligations to producers.
○ Monitors security amounts for compliance with legal standards, based on the amount of a warehouse keeper's or grain dealer's financial obligations to producers.
○ Audits grain accounts and inspects grain inventories for compliance with legal requirements.
○ Investigates default claims, and determines the amount of actual defaults to producers. The Department may convert available security to pay allowed producer claims, or take other legal action to recover unpaid claims for producers.
○ Regulates the business practices of grain warehouse keepers and grain dealers to reduce financial risks to producers, and to prevent fraudulent or deceptive practices.
○ Enforces ch. 127, Stats., and ch. ATCP 99, Wis. Adm. Code.
The Department's grain security program is funded by a combination of license fees (PRO, or program revenue), general tax dollars (GPR, or general purpose revenue) and federal contracts (FED revenue). Under the 1995-97 biennial budget act, a total of 1.68 FTE (full-time equivalent) positions in the Department's grain security program were converted from GPR to PRO funding, effective July 1, 1997.
This rule increases license and inspection fees for grain warehouse keepers and grain dealers in order to fund the conversion of staff from GPR to PRO revenue, and in order to offset projected license revenue shortfalls resulting from consolidated ownership of grain warehouse and grain dealer operations. The rule also changes the fee structure to create a more equitable distribution of fees.
Current license fees generate an average of approximately $179,000 per year. The proposed fees will generate approximately $223,000 in 1996 and $270,000 in each subsequent year. License fees will fund approximately 59% of overall program costs, compared to 31% currently.
Warehouse Keepers; Fee Changes
This rule increases grain warehouse fees as follows:
○ The current basic license fee of $50 is increased to $75 effective September 1, 1996, and to $100 effective September 1, 1997.
○ The current license fee of $25 for each additional business location is increased to $50 effective September 1, 1996, and to $75 effective September 1, 1997.
○ The current inspection fee of $300 for warehouses with storage capacity of less than 150,000 bushels is increased to $375 effective September 1, 1996, and to $425 effective September 1, 1997.
○ The current inspection fee of $325 for warehouses with storage capacity of at least 150,000 bushels but less than 250,000 bushels is increased to $425 effective September 1, 1996, and to $475 effective September 1, 1997.
○ The current inspection fee of $375 for warehouses with storage capacity of at least 250,000 bushels but less than 500,000 bushels is increased to $475 effective September 1, 1996, and to $525 effective September 1, 1997.
○ The current inspection fee of $425 for warehouses with storage capacity of at least 500,000 bushels but less than 750,000 bushels is increased to $525 effective September 1, 1996, and to $575 effective September 1, 1997.
○ The current inspection fee of $475 for warehouses with storage capacity of at least 750,000 bushels but less than 1,000,000 bushels is increased to $575 effective September 1, 1996, and to $625 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of at least 1,000,000 bushels but less than 2,000,000 bushels is increased to $700 effective September 1, 1996, and to $725 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of at least 2,000,000 bushels but less than 3,000,000 bushels is increased to $800 effective September 1, 1996, and to $825 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of at least 3,000,000 bushels but less than 4,000,000 bushels is increased to $900 effective September 1, 1996, and to $925 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of 4,000,000 bushels or more is increased to $1,000 effective September 1, 1996, and to $1,025 effective September 1, 1997.
Grain Dealers; Fee Changes
This rule increases grain dealer fees as follows:
○ A class A grain dealer currently pays a basic license fee of $400, a fee of $10 for each additional truck (if more than one), and a surcharge of $250 if the grain dealer's annual financial statement is not audited. Effective September 1, 1996, this rule increases the basic license fee to $500, imposes a fee of $175 for each additional business location, increases the truck fee to $25 per additional truck, and increases the surcharge for an unaudited financial statement to $350. Effective September 1, 1997, this rule increases the basic license fee to $525, increases the fee for each additional business location to $225, increases the truck fee to $45 per additional truck, and increases the surcharge for an unaudited financial statement to $425.
○ A class B grain dealer currently pays a basic license fee of $175 and a fee of $10 for each additional truck (if more than one). Effective September 1, 1996, this rule increases the basic license fee to $200, increases the truck fee to $25 per additional truck, and imposes a surcharge of $350 if the grain dealer's annual financial statement is not audited. Effective September 1, 1997, this rule increases the basic license fee to $225, increases the truck fee to $45 per additional truck, and increases the surcharge for an unaudited financial statement to $425.
○ A class B2 grain dealer currently pays a basic license fee of $50 and a fee of $10 for each additional truck (if more than one). Effective September 1, 1996, this rule increases the truck fee to $25 per additional truck. Effective September 1, 1997, this rule increases the basic license fee to $75, and increases the truck fee to $45 per additional truck.
○ A class C grain dealer is not required to be licensed, but may voluntarily apply for a license. A class C grain dealer who voluntarily applies for a license must currently pay a basic license fee of $50. Effective September 1, 1996, this rule increases the basic license fee to $75.
○ Under current law, a grain dealer must pay a license fee surcharge of $500 if the grain dealer is caught operating without a required license, except that 1995 Wis. Act 42 provides for a lesser surcharge of $250 for class B2 grain dealers. This rule incorporates the lesser surcharge for class B2 grain dealers.
Rule Organization and Drafting
This rule makes a number of drafting changes to improve the organization and clarity of the current rules, and to make the current rules more consistent with the statutory language enacted under 1995 Wis. Act 42.
Fiscal Estimate
(Please see the February 29, 1996 Wisconsin Administrative Register, page 9.)
Initial Regulatory Flexibility Analysis
(Please see the February 29, 1996 Wisconsin Administrative Register, page 9.)
State Emergency Response Board
The State Emergency Response Board (SERB) has promulgated an emergency rule in order to allow continuation of the Wisconsin Hazardous Materials Transportation Registration Program established under s. 166.20(7g), Stats. The SERB promulgated a rule, ch. ERB 4, to implement the program. The original rule had a sunset date of June 30, 1995. A revised ch. ERB 4 was promulgated December 1, 1995 but was superseded by statutory changes to s. 166.20(7g), Stats., enacted in the DOT 1995 - 1997 biennial budget. The emergency rule will enable the Wisconsin Department of Transportation (DOT) to collect registration fees for the billing period July 1, 1995 through June 30, 1996.
The SERB, the Division of Emergency Government and DOT are jointly developing a permanent rule to reflect the statutory fee structure enacted by the Legislature in the DOT 1995-1997 biennial budget.
This public hearing is being held in order to comply with administrative rules procedures which require a public hearing to be held on emergency rules. Therefore,
Notice is hereby given that pursuant to ss. 166.20(7g) and 227.24(4), Stats., and interpreting s. 166.20(7g), Stats., the State Emergency Response Board will hold a public hearing to consider Chapter ERB 4 relating to fees for transporters and offerors of hazardous material. The public hearing is scheduled as follows:
April 2, 1996 Dept. of Military Affairs
Tuesday Auditorium
10:00 a.m. 2400 Wright Street
Madison, WI
Persons making oral statements are requested to submit their comments in writing either at the time of the hearing or no later than April 2, 1996. Persons unable to make an oral statement may submit written comments which will have the same weight and effect as oral statements presented at the hearing. All written comments should be submitted to Jan Grunewald, State Emergency Response Board, 2400 Wright St., P. O. Box 7865, Madison, WI 53707-7865 and must be received no later than March 29, 1996.
The hearing site is fully accessible to persons with disabilities.
Fiscal Estimate
Under the previous rule the fee structure generated approximately $700,000 annually. The emergency rule incorporates the same fee structure, as enacted in the statutes, and will continue revenues at the same level.
State Emergency Response Board
The State Emergency Response Board is amending ch. ERB 1 relating to reporting requirements for temporary construction and batch plants.
The State Emergency Response Board (SERB) has promulgated ch. ERB 5 as an emergency rule in order to meet the requirements of 1995 Wis. Act 13 and is promulgating the permanent rule at the same time.
These public hearings are being held in order to comply with administrative rule procedures which require a public hearing to be held on emergency rules and proposed rules. Therefore,
Notice is hereby given that pursuant to ss. 166.20(2)(b), (7)(a), 227.11(2)(a), Stats., and interpreting s. 166.20(7)(b), Stats., the State Emergency Response Board will hold public hearings to consider amending ch. ERB 1 relating to temporary construction facility reporting. And furthermore, that pursuant to ss. 166.20(2)(b), (2)(bg), 166.21(2), 227.11(2)(a), Stats. and interpreting ss. 166.20(2)(bg), (2)(br), 166.21(1), (2), (3), Stats., the State Emergency Response Board will hold public hearings to consider ch. ERB 5, relating to computer grants. The public hearings are scheduled as follows:
Hearing Information
March 28, 1996 Dept. of Military Affairs
Thursday Auditorium
Beginning: 9:00 a.m. 2400 Wright Street
Madison, WI
March 28, 1995 Marathon County Courthouse
Thursday Room 149
Beginning: 2:00 p.m. 500 Forest St.
Wausau, WI 54403
Persons making oral statements are requested to submit their comments in writing either at the time of the hearing or no later than March 28, 1996. Persons unable to make an oral statement may submit written comments which will have the same weight and effect as oral statements presented at the hearings. All written comments should be submitted to William Clare, State Emergency Response Board, 2400 Wright St., P.O. Box 7865, Madison, WI 53707-7865 and must be received no later than March 28, 1996.
