Register

Wednesday, January 24, 2001, 1:30 p.m.

Wisconsin Department of Agriculture, Trade and Consumer Protection

Board Room (SR-106)

2811 Agriculture Drive

Madison, WI 53718-6777

The public is invited to attend the hearing and make comments on the proposed rule. Following the public hearing, the hearing record will remain open until January 31, 2001, for additional written comments.

A copy of this rule may be obtained free of charge, from the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Trade and Consumer Protection, PO Box 8911, Madison, WI 53708 or by calling [phone]. Copies will also be available at the public hearing.

An interpreter for the hearing impaired will be available on request for this public hearing. Please make reservations for the hearing interpreter by January 3, 2001 either by writing to Kevin LeRoy, Division of Trade and Consumer Protection, PO Box 8911, Madison, WI 53708, (608/224-4928), or TDD at (608/224-5058). Handicap access is available at the hearing.

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

Statutory authority: ss. 93.07(1) and 93.75(3)

Statutes interpreted: s. 93.75

The legislature, in 1999 Wisconsin Act 55, created an ethanol grant program under s. 93.75, Stats. The legislature authorized the department of agriculture, trade and consumer protection (DATCP) to make grants to ethanol producers in this state. The legislature has not yet provided any funding for the grant program. This rule implements the grant program, subject to legislative funding. The ethanol grant program is scheduled to sunset on July 1, 2006.

Statutory Requirements

To be eligible for a grant under s. 93.75, Stats., an ethanol producer must produce at least 10 million gallons of ethanol in a 12-month period unless DATCP specifies a different amount by rule. The ethanol producer must also purchase commodity inputs from “local sources" as defined by DATCP rule.

Under s. 93.75, Stats., an ethanol producer is eligible for grant payments during the first 60 months of ethanol production. Subject to available funding, the legislature directed DATCP to pay 20 cents per gallon for up to 15 million gallons of eligible ethanol production per 12-month period. DATCP must adopt rules to prorate grant payments if there are not enough funds to pay all ethanol producers at the authorized statutory rate.

Rule Contents

Annual Grants to Ethanol Producers

Under this rule, an ethanol producer may apply by April 1 of each year to receive an ethanol production grant for any consecutive 12-month period ending within a year prior to that April 1. (The applicant chooses the consecutive 12-month period.) Subject to available funding, DATCP will award to each eligible applicant a grant of 20 cents per gallon for up to 15 million gallons of “eligible ethanol" produced during the consecutive 12-month period identified in the grant application.

Eligible Producer

An ethanol producer is eligible for an annual grant if all the following apply:

•   The producer produced at least 10 million gallons of “eligible ethanol" during the consecutive 12-month period identified in the grant application.

•   DATCP has not previously awarded a grant to the ethanol producer for ethanol produced during the consecutive 12-month period identified in the grant application.

•   The ethanol producer first began producing ethanol in this state not more than 60 months prior to the end of consecutive 12-month period identified in the grant application.

Eligible Ethanol

Under this rule, DATCP will make grant payments only for “eligible ethanol" production. “Eligible ethanol" means ethanol that the ethanol producer produces in this state from commodities purchased from local sources. A “commodity" includes grain and other starch or sugar crops. A “commodity purchased from a local source" means any of the following:

•   A commodity that the ethanol producer purchases from a person who grew that commodity in this state.

•   Grain that the ethanol producer purchases from a grain dealer and receives directly from a grain facility located in this state.

Grant Application

An ethanol producer must submit a grant application in writing, on a form provided by DATCP. The application must specify all the following:

•   The consecutive 12-month period for which the applicant seeks a grant.

•   The total gallons of “eligible ethanol" that the applicant produced during that consecutive 12-month period.

•   The name and address of each supplier from whom the applicant purchased a commodity used to produce the “eligible ethanol." The applicant must identify the type and amount of each commodity purchased from each supplier. If the applicant purchased grain from a grain dealer, the applicant must give the address of the grain facility from which the grain dealer shipped that grain to the applicant.

•   The applicant's federal tax identification number.

•   The date on which the applicant first produced ethanol in this state.

•   Any other information required by DATCP.

DATCP Action on Grant Applications

DATCP must award grants by June 1 of each year, and must make grant payments by June 30 (the end of the state fiscal year). If DATCP denies a grant application, or awards a smaller prorated amount (see below), DATCP must explain its action in writing.

DATCP may require an applicant to provide additional information, and may deny a grant application if the applicant fails to honor DATCP's reasonable request for relevant information. DATCP may exercise its authority under ch. 93, Stats., to verify a grant application, or to verify the applicant's eligibility for a grant.

DATCP may deny a grant application, or recover grant payments made to an applicant, if DATCP finds that the applicant has materially misrepresented any information related to a grant application.

Prorating payments

Under this rule, if grant awards in any state fiscal year exceed the grant funds appropriated for that fiscal year, DATCP must prorate grant awards based on each applicant's eligible ethanol production during the consecutive 12-month period identified in the applicant's grant application. An ethanol producer who receives a pro-rated grant may not apply for the balance of that grant in the next fiscal year.

Fiscal Estimate

This proposed rule was initiated when the legislature passed 1999 Wis. Act 55. This act created an ethanol grant program under s. 93.75, Wis. Stats. Under this program, the department is authorized to make grants to certain ethanol producers. The legislation requires the department to adopt rules for the program.

Administrative costs associated with this program should be minimal and easily absorbed into the agency's general duties.

Initial Regulatory Flexibility Analysis

1999 Wis. Act 55 created an ethanol grant program under s. 93.75, Wis. Stats. Under this program, the department is authorized to make grants to certain ethanol producers. The legislation requires the department to adopt rules for the grant program.

To be eligible for a payment, the ethanol producer must produce at least ten million gallons of ethanol per year. The legislation requires the department to pay ethanol producers who meet the statutory and proposed rule criteria 20¢ per gallon for not more than 15 million gallons.

Ethanol producers may only apply for a grant payment if they have been in business for sixty months or less. The entire program is scheduled to sunset on July 1, 2006.

There is little chance that any ethanol producer who can produce the minimum ten million gallons per year would also meet the state's definition of a “small business" contained in s. 227.114 (1) (a). Stats. In that statutory section, “small business" means a business entity, including its affiliates, which is independently owned and operated and is not dominant in its field, and which employs fewer than twenty-five full time employees or which has gross annual sales of less than $2,500,000. Consequently, the department expects this program to have minimal impact on small business in the ethanol production industry.

The grant program should have a major impact on the prices for agricultural crops used in the production of ethanol. By providing another market for these agricultural crops, the prices for those crops should increase. The increase in prices will benefit Wisconsin farmers. Since the grant program is designed to promote the purchase of crops grown in Wisconsin, there will be a benefit to Wisconsin small businesses derived from this program and rule.

Notice of Hearing

Agriculture, Trade and Consumer Protection
[CR 00-183]
(reprinted from 12/31/00 Wis. Adm. Register)

The state of Wisconsin Department of Agriculture, Trade and Consumer Protection announces that it will hold a public hearing on a proposed rule related to Public Warehouse Keepers; License Fees. This rule amends ch. ATCP 97. The hearing will be held:

Thursday, January 18, 2001, 10:00 a.m.

WI Department of Agriculture, Trade and Consumer Protection

Conference Room 472

2811 Agriculture Drive

Madison, WI 53718-6777

The public is invited to attend the hearing and comment on the proposed rule. Following the public hearing, the hearing record will remain open until January 28, 2001 for additional written comments.

A copy of the proposed rule may be obtained, free of charge, from the Wisconsin of Department of Agriculture, Trade and Consumer Protection, Division of Trade & Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911, or by calling [phone]. Copies will also be available at the public hearing.

An interpreter for the hearing impaired is available upon request for the hearing. Please make a reservation for a hearing interpreter by January 11, 2001, by contacting Linda Meinholz at [phone] or Don Furniss at [phone] or by contacting the TDD at the Department at [phone]. Handicap access is available at the hearing.

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

Statutory Authority: ss. 93.02 (3) (a) and 99.08.

Statutes Interpreted: Ch. 99.

This rule increases annual license fees for public storage warehouses licensed under Wis. Stat. ch. 99. These are warehouses that store property (food, wearing apparel, cars, boats, furniture, household goods, etc.) for others for hire.

The department of agriculture, trade and consumer protection (DATCP) licenses public storage warehouses to protect depositors. The following warehouses are exempt from licensing under Wis. Stat. ch. 99:

•   A warehouse used only for the warehouse keeper's property

•   A grain warehouse licensed under Wis. Stat. ch. 127.

•   A frozen food locker plant.

•   A cooperative warehouse used to store farm products and merchandise only for cooperative members.

•   A municipal warehouse.

•   A dairy plant warehouse used to store the dairy plant's own products.

•   A vegetable processor's warehouse used to store the processor's own products.

•   A warehouse operated by a common carrier, if the common carrier transfers and stores property for periods of not more than 30 days.

•   A warehouse licensed under the United States warehouse act.

•   A “mini-warehouse" or other storage space rented to a person who has free access to the storage space and is responsible for the property stored there.

DATCP has adopted public storage rules under Wis. Admin. Code ch. ATCP 97. Among other things, the current rules establish annual license fees for public storage warehouses. Warehouse keepers pay annual license fees based on the warehouse size.

DATCP's regulatory program is funded entirely by license fees. Current fees are not adequate to cover program costs. This rule increases license fees as follows:

Warehouse	Size (Sq. Ft.)	Current Fee	Proposed Fee
Class 1	1–9,999	$75	$90
Class 2	10,000-49,000	$150	$185
Class 3	50,000-99,999	$240	$300
Class 4	100,000–149,999	$320	$400
Class 5	150,000–Over	$420	$500

Fiscal Estimate

This rule amends Wis. Admin Code ATCP 97.04 (4) (a) to increase the annual license fees paid by public warehouse keepers. Increases ranging from 20% to 25%, depending on license class, will provide additional revenues of approximately $16,200 annually beginning with the license year July 1, 2001. The department estimates one-time costs of approximately $500 for printing, mailing and holding hearings on the proposed rule changes.

Initial Regulatory Flexibility Analysis

The Department of Agriculture, Trade and Consumer Protection regulates public warehouse keepers to protect depositors. The regulatory program is funded entirely by license fees. Current fees are not adequate to sustain the program. License fees were last increased in 1994.

This rule increases annual license fees for public warehouse keepers, many of whom are small businesses. The fee increases range from 20% to 25%, depending upon the square footage of space used for storage of property of others, with a maximum increase of $100.

Notice of Hearing

Office of the Commissioner of Insurance
[CR 00-188]

Notice is hereby given that pursuant to the authority granted under s. 601.41 (3), Stats., and the procedure set forth in under s. 227.18, Stats., OCI will hold a public hearing to consider the adoption of a proposed rulemaking order affecting ss. Ins 3.455 and 3.46 and appendices, Wis. Adm. Code, relating to long term care insurance.

Hearing information

January 29, 2001
  1 p.m. or as soon thereafter as the matter may be reached
  Room 6, OCI, 121 East Wilson Street, Madison, WI

Written comments on the proposed rule will be accepted into the record and receive the same consideration as testimony presented at the hearing if they are received at OCI within 14 days following the date of the hearing. Written comments should be addressed to: Stephen Mueller, OCI, PO Box 7873, Madison WI 53707