DATCP Docket No. 18-R-1
WISCONSIN DEPARTMENT OF AGRICULTURE,
TRADE AND CONSUMER PROTECTION
The Wisconsin Department of Agriculture, Trade and Consumer protection hereby adopts the following emergency rule to create ch. ATCP 22 relating to industrial hemp and affecting small businesses.
Analysis Prepared by the Department
of Agriculture, Trade and Consumer Protection
This emergency rule implements the industrial hemp pilot program created under s. 94.55 Stats., by 2017 Act 100. Under s. 94.55 Stats., the Department of Agriculture, Trade and Consumer Protection (Department) is required to promulgate rules establishing a state industrial hemp research pilot program (Pilot Program).
This emergency rule specifies the application process for obtaining a license to grow and a license to process industrial hemp for research purposes under the Pilot Program administered by the Department.
Pursuant to 2017 Act 100, Section 15 (2), the Department was not required to provide a finding of emergency or prepare a statement of scope of the rules. The Department was also not required to submit the final draft to the Governor for approval. This rule republishes the text of emergency rule, EmR1807, which was published and effective on March 2, 2018, and is published for the sole purpose of correcting the effective date of the rule as stated in EmR1807 to correspond to the provisions of 2017 Wisconsin Act 100, section 15 (2) that provide that the rule takes effect upon publication and remains in effect until July 1, 2020.
Explanation of Statutory Authority
Wis. Stat. s. 94.55 creates the Industrial Hemp Pilot Program for the state of Wisconsin. The Department is required under s. 94.55, Stats., to promulgate rules to create and implement a Pilot Program.
Related Rules or Statutes
There are no directly related rules or statutes, other than those cited above.
Plain Language Analysis
The Pilot Program is designed to study the development industrial hemp in Wisconsin. Growers and Processors will provide information to the Department related to hemp production. As part of the Pilot Program, the Department is also establishing a voluntary seed certification program for industrial hemp.
This emergency rule will have a fiscal impact on the Department’s operations. Under this emergency rule, the Department must issue licenses to persons planning to plant, grow, cultivate, harvest, handle, or process industrial hemp in Wisconsin. Department staff must review each application and all supporting information, and perform a background check on each applicant. Department staff will also be responsible for field inspections, sampling, and compliance. Research collected from each grower will be analyzed by Department staff annually.
Program administration will occupy at least 2 FTE staff in the Department’s Division of Agricultural Resource Management (this does not include legal, managerial, the Department’s central accounting, or other indirect staff support). The cost for the 2 FTE staff will be $200,000 per year, including salary, fringe benefits, and support costs.
Analysis of Supporting Documents used to Determine Effect on Small Business
Because this program is voluntary for all participants, no substantial analysis was required to determine the effect on small business.
This emergency rule will have no adverse effect on small business. The Pilot Program is voluntary and thus imposes no cost on businesses. By offering licenses to persons electing to grow industrial hemp under the Pilot Program, agricultural producers and businesses may benefit from this new opportunity to produce industrial hemp in the state. Applicants will be required to pay a non-refundable license fees. Licensees will be charged an annual fee to include actual costs incurred by the Department.
Surrounding State Programs
Minnesota currently operates an industrial hemp program. Additionally, many other states are in various stages of implementation of industrial hemp program (ex. Kentucky, New York, and North Dakota).