DATCP Docket No. 14-R-01
Rules Clearinghouse No. 14-039
ORDER OF THE WISCONSIN DEPARTMENT OF AGRICULTURE,
TRADE AND CONSUMER PROTECTION
ADOPTING RULES
The Wisconsin department of agriculture, trade and consumer protection adopts the following rule to repeal ch. ATCP 104; relating to leaf tobacco buying and selling. _____________________________________________________________________________
Analysis Prepared by the Department
of Agriculture, Trade and Consumer Protection
Statutes Interpreted
Statutory Authority
Explanation of Statutory Authority
DATCP has broad general authority, under s. 93.07 (1), Stats., to interpret laws under its jurisdiction. DATCP has authority under s. 100.20 (2) (a), Stats., to promulgate administrative rules forbidding trade practices which are determined by the department to be unfair and prescribing trade practices that are determined by the department to be fair. Related Statutes and Rules
There are no Wisconsin Statutes or other rules that regulate transactions between tobacco growers and tobacco buyers.
Plain Language Analysis
Background
The existing ch. ATCP 104, Wis. Adm. Code, prohibits leaf tobacco buyers from engaging in certain practices: Attempting to induce another tobacco buyer to engage in specific activities that would artificially manipulate the market price for tobacco.
Refusing to negotiate with any grower for the purchase of tobacco because such tobacco was previously graded or submitted for grade.
Falsely representing in negotiations with a grower that any particular lot or crop of tobacco was purchased at less than the price actually paid, or that another tobacco buyer has or will cease buying tobacco.
Purchasing tobacco under any contract which does not include a specific time within which delivery and payment are to be made.
Giving or offering to give any grower any secret or separately stated bonus, commission, payment or other consideration.
The existing rule also prohibits tobacco growers or sellers from soliciting or receiving any secret or separately stated bonus, commission, payment or other consideration.
This rule was originally promulgated as Department of Agriculture General Order #138 in 1952. At that time, tobacco farming was a prominent business in Wisconsin, and much of the crop was sold in cash markets at the conclusion of the growing season. This rule was necessary to ensure fair transactions between growers and buyers.
Today, the crop is generally produced and sold under contract (as opposed to a cash market at the end of the season). This means that ch. ATCP 104, Wis. Adm. Code, as it is currently written, is irrelevant to the current industry. Rule Content
This rule would repeal chapter ch. ATCP 104, Leaf Tobacco, Buying and Selling, in its entirety. Summary of, and Comparison with, Existing or Proposed Federal Statutes and Regulations
There are no known federal statutes or regulations (existing or proposed) that are comparable to ch. ATCP 104, Wis. Adm. Code. Comparison with Rules in Adjacent States
There are no known rules in adjacent states that are comparable to ch. ATCP 104, Wis. Adm. Code.
