Wisconsin Legislature: EmR1807 Rule Text

EmR1807 Rule Text

Please see the EmR1807 info page for dates, other information, and more related documents.

Department of Agriculture, Trade and Consumer Protection (ATCP)

Administrative Code Chapter Group Affected:

Chs. ATCP 20-54; Agricultural Resource Management

Administrative Code Chapter Affected:

Related to: Industrial hemp, and affecting small businesses

Notes: 2017 Wisconsin Act 100, section 15 (2) contains the following regarding the promulgation of this rule:

No later than the 90th day after the effective date of this subsection, the department of agriculture, trade and consumer protection shall, using the procedure under section 227.24 of the statutes, promulgate rules under section 94.55 (2) and (3) of the statutes. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, emergency rules promulgated under this subsection remain in effect until July 1, 2020, or the date on which permanent rules take effect, whichever is sooner. Notwithstanding section 227.24 (1) (e) 1d. and 1g. of the statutes, for emergency rules promulgated under this subsection, the department is not required to prepare a statement of scope of the rules or to submit the proposed rules in final draft form to the governor for approval.

Comment on this emergency rule (through 4/20/2018)

DATCP Docket No. 18-R-1

WISCONSIN DEPARTMENT OF AGRICULTURE,

TRADE AND CONSUMER PROTECTION

EMERGENCY RULE

Chapter ATCP 22

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.

Statutes Interpreted

s. 94.55, Stats.

Statutory Authority

s. 94.55, Stats.

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.

Fiscal Impact

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.

Business Impact

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).

Data and Analytical Methodologies

The Department gathered information from several states and the federal government, related to regulations, sampling and testing protocols, compliance, importation, etc. Staff at the Department reviewed this information and the Department’s legal authority, in drafting this emergency rule.