The statement of scope for this emergency rule, SS 124-17, was approved by the Governor on November 30, 2017, published in Register No. 744A1 on December 4, 2017, and approved by the Department of Agriculture, Trade and Consumer Protection Board on December 21, 2017. This emergency rule was approved by the Governor on January 17, 2018.
DATCP Docket No. 18-R-01
January 23, 2018
WISCONSIN DEPARTMENT OF AGRICULTURE,
TRADE AND CONSUMER PROTECTION
EMERGENCY RULE
The Wisconsin department of agriculture, trade and consumer protection hereby adopts the following emergency rule to amend ss. ATCP 99.126 (2), ATCP 100.135, and ATCP 101.245; and to repeal and recreate s. ATCP 99.126 (3) relating to grain dealers and grain warehouse keepers; milk contractors; and vegetable contractors. _____________________________________________________________________________
Analysis Prepared by the Department
of Agriculture, Trade and Consumer Protection
This emergency rule modifies sections of Wis. Admin. Code s. ATCP 101 to increase vegetable contractor assessments, as required by statute, to address the portion of the Agricultural Producer Security Fund (Fund) that is currently below its minimum threshold. This emergency rule also amends sections of s. ATCP 99, Wis. Admin. Code, to address the portion of the Fund that is currently above its maximum threshold; and s. ATCP 100, Wis. Admin. Code, to address assessment inequities, based on findings from a recent actuarial study of the Fund and discussions with the Agricultural Producer Security Council (Council).
Statutes Interpreted
Statutory Authority
Statutory Authority: ss. 25.463 and 126.81 (1) (a), Stats. Explanation of Statutory Authority
Wis. Stat. s. 25.463 creates the Wisconsin Agricultural Producer Security Fund. Wis. Stat. s. 126.15 allows DATCP to establish by rule annual fund assessments for grain dealers. Wis. Stat. s. 126.30 allows DATCP to establish by rule annual fund assessments for grain warehouse keepers. Wis. Stat. s. 126.46 (1) directs DATCP to establish by rule annual fund assessments for milk contractors. Wis. Stat. s. 126.60 allows DATCP to establish by rule annual fund assessments for vegetable contractors. Wis. Stat. s. 126.81 (1) (a) allows DATCP to promulgate rules to interpret and implement Wis. Stat. ch. 126. Wis. Stat. s. 126.88 (1) directs DATCP to promulgate a rule modifying assessments when the fund balance or a portion of the fund balance falls outside the specified minimum and maximum amounts. Wis. Stat. s. 126.88 (2) (a) directs DATCP to promulgate a rule modifying assessments when the fund balance or a portion of the fund balance falls below the minimum amounts required under s. 126.88 (1) (a) through (e), Stats. Wis. Stat. s. 126.88 (2) (b) allows DATCP to promulgate an emergency rule without demonstrating that the emergency rule is necessary for the preservation of the public peace, health, safety, or welfare under ch. 227.24, Stats. Wis. Stat. s. 126.88 (2) (b) also allows a rule promulgated under this paragraph to remain in effect for not more than 24 months. Related Statutes and Rules
Wis. Stat. s. 15.137 (1) defines the membership of the Council, who advise the Department on the Fund and other producer security matters. Plain Language Analysis
Background
The Fund, established by Wis. Stat. s. 25.463, is a public trust administered by the Department. Milk contractors, grain dealers, grain warehouse keepers, and vegetable contractors (collectively known as contractors) must purchase a license to obtain milk, grain, and vegetables, respectively, from producers, and most contractors are required to contribute to the Fund annually. Funds are used to settle claims by producers in the event that a contractor defaults on a payment. Funds from each industry are accounted for separately and then deposited into the overall fund. Wis. Stat. Chapter 126 establishes detailed fund assessment requirements, except that it requires the Department to establish milk contractor fund assessments by rule. Wis. Stat. s. 126.88 (1) sets minimum and maximum fund balances for each industry, as well as a minimum and maximum balance requirement for the overall fund.
