Rule-making notices
Notice of Hearing
Accounting Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Accounting Examining Board in ss.
15.08 (5) (b),
227.11 (2) and
442.10 (3), Stats., and interpreting s.
442.10, Stats., the Accounting Examining Board will hold a public hearing at the time and place indicated below to consider an order to create s.
Accy 1.003; and to repeal and recreate ss.
Accy 1.101 and
1.102, relating to definitions and independence in professional practice.
Hearing Date, Time and Location
Date: October 18, 2002
Time: 10:00 a.m.
Location: 1400 East Washington Avenue
Room 180
Madison, Wisconsin
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by November 15, 2002 to be included in the record of rule-making proceedings.
Analysis prepared by the Department of Regulation and Licensing
Statute interpreted: s.
442.10, Stats.
The rules of the Accounting Examining Board (Board) requiring independence in practice are repealed and recreated in this order. The Board's current independence rules are founded on independence rules of the American Instituted of Certified Public Accountants (AICPA). The AICPA revised its code effective May 31, 2002 and the rules on independence in this order reflect the changes made by the AICPA to its Code of Professional Conduct. (The AICPA Code is available on the Internet at
http://www.aicpa.org/about/code/101-1.)
The rules define “attest service," “attest engagement," “attest engagement team," “client," “close relative," “council," “covered member," “financial statement," “firm," “holding out," “immediate family," “individual in a position to influence the attest engagement," “joint closely held investment," “key position," “loan," “manager," “member," “office," “partner," “period of the professional engagement," “practice as a certified public accountant" “professional services," and “significant influence".
Generally, a certified public accountant (CPA) is required to meet the standards of independence in order to perform certain professional services for clients, such as audits and reviews of financial statements. Wisconsin law and requirements of some federal agencies prohibit a certified public accountant and a CPA firm from expressing an opinion as an independent certified public accountant on financial statements of any enterprise unless the CPA and the firm are independent of the enterprise.
Independence requirements in the rule generally apply to a “covered member," a term defined in the rule. A covered member must meet independence restrictions on financial interests, business relationships, and family employment). “Covered member" is defined to include an individual on the attest engagement team, in a position to influence the attest engagement; certain partners in the firm, the firm itself and other entities subject to the control of covered members.
Section
Accy 1.101 (1) provides that independence is impaired if the CPA had certain financial interests in a client during the period of a professional engagement with the client. Subsection (2) covers ownership of securities and other ownership interests in a client. Certain business relationships with a client that impair independence are described in subsection (3). Subsection (4) states how the independence rules apply to covered members who were formerly employed or associated with a client. The independence rules apply to a covered member's immediate family under subsection (5) and to close relatives under certain circumstances identified in subsection (6).
Section
Accy 1.102 identifies loans that a covered member has from a client or certain officers, employees or owners of a client that are “grandfathered" or permitted under the independence rule. These loans include certain home mortgages obtained from the financial institution prior to its becoming a client requiring independence and automobile loans and leases collateralized by the automobile.
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s.
227.114 (1) (a), Stats.
Copies of Rule and Contact Person
Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearing
Accounting Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Accounting Examining Board in ss.
15.08 (5) (b),
227.11 (2) and
442.087 (3), Stats., and interpreting s.
442.087, Stats., the Accounting Examining Board will hold a public hearing at the time and place indicated below to consider an order to create ch.
Accy 9, relating to peer reviews.
Hearing Date, Time and Location
Date: October 18, 2002
Time: 10:00 a.m.
Location: 1400 East Washington Avenue
Room 180
Madison, Wisconsin
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by November 15, 2002 to be included in the record of rule-making proceedings.
Analysis prepared by the Department of Regulation and Licensing
Statute interpreted: s.
442.087, Stats.
Chapter
Accy 9 is created to implement the requirements of s.
442.087, Stats., as created by
2001 Wis. Act 16. After January 1, 2005, the Department of Regulation and Licensing may not renew the license of a certified public accounting firm unless the firm undergoes a peer review at least once every 3 years. The peer review program is to be specified by administrative rules of the Accounting Examining Board (Board) and the person conducting the program is to be approved under rules of the Board. The person conducting the program may not be affiliated with the firm, or members of the firm, undergoing review.
These rules specify the peer review required for renewal of a firm's license and include requirements for the Board to approve one or more persons to conduct the peer reviews. The rules also require approved persons to periodically report to the Board on the effectiveness of the peer reviews conducted and to provide the examining board with a listing of all firms that have undergone peer review conducted by the person.
The rules define the terms “board approved review program," “engagement review," “peer review," “person," and “system review." The commonly used acronyms “SAS," “SSAE," and “SSARS" are also defined in the rule.
The rules require in s.
Accy 9.02 that a firm seeking license renewal shall include a description of at least one approved peer review of the firm that was undergone within 3 years preceding the renewal application. A CPA firm that does not perform attest services as s.
442.001 (1), Stats. is exempt from this requirement.
Board approved peer review programs must report to the Board by December 1 of each even-numbered year, identifying the firms that have undergone peer review within the preceding 36 months and evaluating the effectiveness of the peer reviews. The rule includes approval requirements for reviewers in s.
Accy 9.05. An applicant is licensed to practice as a CPA in this state and have undergone at least one peer review. An applicant must submit evidence that the program meets requirements for performing system reviews, engagement reviews and report reviews established under the “Standards for Performing and Reporting on Peer Reviews" issued by the American Institute of Certified Public Accountants. Paragraphs 25-71 of these standards are attached as an Appendix to the rule and are also available from the Internet at:
http://www.aicpa.org/members/div/practmon/stdstitledl.htm
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s.
227.114 (1) (a), Stats.
Copies of Rule and Contact Person
Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearings
Agriculture, Trade and Consumer Protection
[
CR 02-113]
Rule related to agricultural producer security.
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection announces that it will hold public hearings on a proposed rule
relating to agricultural producer security. This rule implements Wisconsin's new agricultural producer security law, ch.
126 Stats. The department will hold three hearings at the time and places shown below. The department invites the public to attend the hearings and comment on the proposed rule. Following the public hearing, the hearing record will remain open until November 22, 2002 for additional written comments.
You may obtain a free copy of this rule by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Trade and Consumer Protection, 2811 Agriculture Drive, P.O. Box 8911, Madison WI 53708, or by calling (608) 224-4928. Copies will also be available at the hearings.
Hearing impaired persons may request an interpreter for these hearing. Please make reservations for a hearing interpreter by October 4, 2002, by writing to Kevin LeRoy, Division of Trade and Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911, telephone (608) 224-4928. Alternatively, you may contact the Department TDD at (608) 224-5058. Handicap access is available at the hearings.
Hearing Date, Time and Location
Tuesday, October 15, 2002, 10:30 a.m. - 12:30 p.m.
Green Bay State Office Building
200 North Jefferson Street
Room152-A
Green Bay, WI 54301
Handicapped accessible
Thursday October 17, 2002, 10:30 a.m. - 12:30 p.m.
WDATCP Regional Office
3610 Oakwood Hills Parkway
Eau Claire, WI 54701-7754
Handicapped accessible
Tuesday October 22, 10:30 a.m. - 12:30 p.m.
Wisconsin Department of Agriculture, Trade and Consumer Protection
Board Room
2811 Agriculture Drive
Madison, WI 53718
Analysis prepared by the Department of Agriculture, Trade and Consumer Protection
This rule implements Wisconsin's new agricultural producer security law (ch.
126, Stats., created by
2001 Wis. Act 16). The new law is designed to protect agricultural producers against catastrophic financial defaults by grain dealers, grain warehouse keepers, milk contractors and vegetable contractors. The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) administers the new law. This rule amends and repeals current rules, and creates new rules consistent with the new law.
Chapter
126, Stats., regulates “contractors" including grain dealers, grain warehouse keepers, milk contractors and vegetable contractors. Contractors must be licensed by DATCP. In most cases, licensed contractors must contribute to Wisconsin's agricultural producer security fund (“fund"). In some cases, fund participation is voluntary. If a contributing contractor defaults on payments to producers, the fund may partially compensate those producers. Fund contributions are based, in part, on the contractor's financial condition.
Some contractors must file security in addition to, or in lieu of, fund contributions. If the contractor defaults, DATCP may use the security to pay a portion of the producer claims. Security requirements are based on the contractor's financial condition and practices. Contractors who are disqualified from the fund, based on financial condition, must file security with DATCP.
Grain Dealers
General. This rule requires grain dealers to comply with the new law, ch.
126, Stats. This rule supplements the new law, and amends or repeals rules that no longer apply.
Financial Statements; Disclosures. Under ch.
126, Stats., a grain dealer must file annual financial statements with DATCP if the grain dealer does any of the following:
•Annually pays more than $500,000 for producer grain procured in this state.
• Procures any producer grain in this state under deferred payment contracts.
Grain dealers who are not required to file financial statements with DATCP may choose to file voluntarily. For example, grain dealers with favorable financial ratios may file voluntary financial statements to qualify for lower fund assessments. A grain dealer's financial ratios, including the grain dealer's debt to equity ratio, may affect the following:
• The grain dealer's eligibility to participate in the fund.
•The amount that the grain dealer must contribute to the fund.
•Whether or not the grain dealer must file security with DATCP.
Under this rule, a grain dealer's financial statement must disclose and describe all of the following:
•All notes, mortgages or other long-term liabilities that are not due or payable within one year.
•Any of the following items that are counted as assets in the financial statement:
•Any non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.
•Any note or account receivable from a parent organization, a subsidiary, or an affiliate other than an employee.
•Any note or account that has been receivable for more than one year, unless the grain dealer has established an offsetting reserve for uncollectable notes and accounts receivable.
Debt to Equity Ratio; Liability Adjustments. This rule allows grain dealers to make certain liability adjustments when calculating their debt to equity ratio for purposes of ch.
126, Stats. Grain dealers may deduct the following amounts when calculating their liabilities for this purpose:
•Amounts borrowed from a lending institution and deposited with a commodities broker to hedge grain transactions.
•Amounts borrowed from a lending institution to buy grain that has been shipped, if the grain dealer maintains a collectible account receivable on the balance sheet.
•Amounts borrowed from a lending institution to buy grain that is held in inventory and shown as inventory on the balance sheet date.
•Amounts borrowed from a lending institution to buy grain that is held in inventory, if the grain dealer has entered into a contract to sell the grain.
•Amounts borrowed from a lending institution to pay for fertilizer, pesticides, herbicides or seed that the grain dealer holds in inventory on the balance sheet date.
Financial Statement Attachments. Some of the financial disclosures required by ch.
126, Stats., and this rule may be made in notes or attachments to the financial statement. Under this rule, an attachment to a reviewed or audited financial statement must satisfy the following requirements:
• The attachment must be on the letterhead of the certified public accountant who reviewed or audited the financial statement.
•The certified public accountant who reviewed or audited the financial statement must certify, in the attachment, whether the attachment is reviewed or audited.
Security Disclosures to Producers. This rule requires grain dealers to make security disclosures to grain producers, so that producers understand the extent to which grain payments are secured by the agricultural producer security program. This rule specifies the form in which grain dealers must make the disclosures. A grain dealer must make the disclosures to a producer at all the following times:
•When the grain dealer first procures grain from the producer.
•The first time the grain dealer procures grain from the producer in each new license year.
•The first time the grain dealer procures grain from the producer after any change in circumstances that requires a different disclosure (for example, after a grain dealer begins contributing to the fund).
Grain Warehouse Keepers
General. This rule requires grain warehouse keepers to comply with the new law, ch.
126, Stats. This rule supplements the new law, and amends or repeals rules that no longer apply.
Grain Warehouse Licensing. Under ch.
126, Stats., grain warehouse license and fee requirements are based on the grain warehouse capacity. This rule spells out a standard method for calculating grain warehouse capacity, based on the volume of the grain warehouse and a grain “pack factor" specified in this rule.
Under this rule, an applicant for a grain warehouse license must submit a sworn and notarized statement certifying that the information provided in the license application is complete and accurate.
Financial Statements; Disclosure Requirements. Under ch.
126, Stats., a grain warehouse keeper must file a financial statement with DATCP if the grain warehouse keeper has total warehouse capacity of more than 300,000 bushels. Other grain warehouse keepers may file
voluntary financial statements
to qualify for lower fund assessments. A grain warehouse keeper's financial ratios, including the warehouse keeper's debt to equity ratio, may affect the following:
•The warehouse keeper's eligibility to participate in the fund.
•The amount that the warehouse keeper must contribute to the fund.
•Whether or not the warehouse keeper must file security with DATCP.
Under this rule, a grain warehouse keeper's financial statement must disclose and describe all the following:
•All notes, mortgages or other long-term liabilities that are not due or payable within one year.
• Any of the following items that are counted as assets on the financial statement:
- Any non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.
- Any note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.
- Any note or account that has been receivable for more than one year, unless the grain dealer has established an offsetting reserve for uncollectible notes and accounts receivable.
•The total number of bushels of grain in the warehouse keeper's warehouse.
• The total number of bushels of grain forwarded to another warehouse keeper.
•The total number of bushels of grain the warehouse keeper is obligated to store for depositors.
•The warehouse keeper's net grain position for each type of grain.
Debt to Equity Ratio; Liability Adjustments. This rule allows grain warehouse keepers to make certain liability adjustments when calculating their debt to equity ratio for purposes of ch.
126, Stats. Grain warehouse keepers may deduct, from their liabilities, the following amounts:
•Amounts borrowed from a lending institution and deposited with a commodities broker to hedge grain transactions.
•Amounts borrowed from a lending institution to buy grain that the grain warehouse keeper has sold and shipped, if the grain warehouse keeper maintains a collectible account receivable on the balance sheet.
•Amounts, borrowed from a lending institution, that are secured by grain that the grain warehouse keeper owns, holds in inventory on the balance sheet date, and shows as inventory on the balance sheet.
•Amount borrowed from a lending institution to pay for fertilizer, pesticides, herbicides or seed that the grain dealer holds in inventory on the balance sheet date.
Financial Statement Attachments. Some of the financial disclosures required by ch.
126, Stats., and this rule may be made in notes or attachments to the financial statement. Under this rule, an attachment to a reviewed or audited financial statement must satisfy the following requirements:
• The attachment must be on the letterhead of the certified public accountant who reviewed or audited the financial statement.
•The certified public accountant who reviewed or audited the financial statement must certify, in the attachment, whether the attachment is reviewed or audited.
Security Disclosures to Producers. This rule requires grain warehouse keepers to make security disclosures to grain producers, so that producers understand the extent to which producer grain in storage is backed by the agricultural producer security program. This rule specifies the form in which grain warehouse keepers must make the disclosures. A grain warehouse keeper must give disclosures to a producer at all the following times:
•When the grain warehouse keeper first receives grain from the producer.
•The first time the grain warehouse keeper receives grain from the producer in each new license year.
•The first time the grain warehouse keeper receives grain from the producer after any change in circumstances that requires a different disclosure (for example, after a grain warehouse keeper begins contributing to the fund).
Milk Contractors
General. This rule requires milk contractors to comply with the new law, ch.
126, Stats. This rule supplements the new law, and amends or repeals rules that no longer apply. This rule does
not change current rules related to milk price discrimination.
Financial Statements; Disclosure Requirements. Under ch.
126, Stats., a milk contractor must file a financial statement with DATCP if the milk contractor has more than $1.5 million in annual milk payroll obligations to producers. Other milk contractors may file
voluntary financial statements in order to avoid paying fund assessments or to qualify for lower fund assessments. A milk contractor's financial ratios, including the contractor's debt to equity ratio, may affect the following:
• The milk contractor's eligibility to participate in the fund.
•The amount that the milk contractor must contribute to the fund.
•Whether or not the milk contractor must file security with DATCP.
Under this rule, a milk contractor's financial statement must disclose and describe all of the following:
•All notes, mortgages or other long-term liabilities that are not due or payable within one year.
•Any of the following items that are counted as assets in the financial statement:
- Any nontrade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.
- Any note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.
- Any note or account that has been receivable for more than one year, unless the milk contractor has established an offsetting reserve for uncollectable notes and accounts receivable.
Debt to Equity Ratio; Liability Adjustments. This rule allows milk contractors to make certain liability adjustments when calculating their debt to equity ratios, but only for the purpose of determining fund assessments. When calculating their liabilities, milk contractors may deduct amounts borrowed from lending institutions in order to carry “aged cheese" in inventory for the period required by the federal standard of identity for that cheese. “Aged cheese" means cheese for which the federal standard of identity prescribes an aging period of at least 4 months.
Financial Statement Attachments. Some of the financial disclosures required by ch.
126, Stats., and this rule may be made in notes or attachments to the financial statement. Under this rule, an attachment to a reviewed or audited financial statement must satisfy the following requirements:
• The attachment must be on the letterhead of the certified public accountant who reviewed or audited the financial statement.
•The certified public accountant who reviewed or audited the financial statement must certify, in the attachment, whether the attachment is reviewed or audited.
Security Disclosures to Producers. This rule requires milk contractors to make security disclosures to milk producers, so that producers understand the extent to which milk payments are backed by the agricultural producer security program. This rule specifies the form in which the milk contractor must make the disclosures. A milk contractor must give the disclosures to a producer at all the following times:
•When the milk contractor first procures milk from the producer.
•In June of each year.
Custom Processing for Milk Producers; Exemption. This rule clarifies that ch.
126, Stats., does not apply to a dairy plant operator who takes temporary custody of producer milk for the sole purpose of providing
custom processing services to milk producers, provided that all the following apply:
•The producers retain title to the milk and to the processed dairy products made from that milk.
•The operator does not market the milk or processed dairy products, but promptly delivers the processed dairy products to the producers or their agent for consumption or marketing.
•The operator does not commingle producer-owned milk or dairy products with other milk or dairy products.
•The operator provides the custom processing services under a written contract with each producer or the producer's agent. The contract must clearly and conspicuously disclose that:
- The producer retains title to the milk and dairy products.
- The producer's milk shipments are not secured under ch.
126, Stats.
Producer Agents. Chapter
126, Stats., regulates milk contractors who buy producer milk, or who market producer milk as producer agents. A
producer agent is a person who markets producer milk for producers without taking title to that milk. Under ch.
126,
producer agents may have lower security and fund participation requirements than other milk contractors. This rule clarifies that a milk contractor does not qualify as a
producer agent, for purposes of ch.
126, Stats., unless all the following apply:
•The milk contractor procures producer milk in this state solely as the agent of the milk producers.
•The milk contractor does not take title to the producer milk, or to any dairy products made from the producer milk.
•The milk contractor markets the producer milk under a written contract with each milk producer. The contract must clearly and conspicuously disclose all the following:
- That the milk contractor does not take title to the producer's milk, or any dairy products made from that milk.
- That the milk contractor receives payments on behalf of the producer, and holds them in trust for the producer.
- The terms and conditions of payment to the producer.
- The procedure by which the milk contractor will receive payment on behalf of the producer and make payments to the producer, including any trust fund arrangement.
- The milk contractor's compensation for serving as the producer's agent, and the method by which the milk contractor will receive that compensation from the milk producer.
- A security disclosure statement (see below).
•The milk contractor does not process, as a producer agent, more than 5 million pounds of producer milk in any month.
•The milk contractor gives, to each recipient of producer milk marketed by the contractor, a written invoice stating that the milk is producer milk not owned by the milk contractor.
•The milk contractor files a monthly report with DATCP. The milk contractor must file the report on or before the 25th day of the month. The report must include all the following:
•The name and address of each person to whom the milk contractor marketed, in the preceding month, producer milk procured in this state.
•The total pounds of producer milk that the milk contractor marketed to each person in the preceding month.
•The milk contractor's total milk payment obligation to milk producers for producer milk that the contractor marketed in the preceding month.
Marketing Processed Dairy Products for Milk Producers. This rule clarifies that ch.
126, Stats., does not apply to a person who markets only
processed dairy products for milk producers, provided that the person does not procure, market or process any
raw producer milk.
Milk Payroll Report; Clarification. Under ch.
126, Stats., an applicant for an annual milk contractor license must report (1) the applicant's total annual payment obligation to milk producers, and (2) the largest obligation incurred at any time during the applicant's last fiscal year. The reported amounts are used to determine fund assessments and security requirements, if any. This rule clarifies that the applicant must report (1) the total amount paid for milk procured during the applicant's last fiscal year, and (2) the largest amount paid for milk procured in any single month during the last fiscal year.
Pay Statements to Milk Producers. Under current rules, dairy plant operators must provide pay statements to milk producers. A pay statement identifies the producer and pay period, the amount of milk received, the grade of the milk, milk test results, the milk price and price adjustments, the gross amount due, the average gross pay per hundredweight less hauling charges, deductions from the gross amount due, and the net amount due.
This rule re-codifies, but does not change, current pay statement requirements for dairy plant operators. This rule requires all milk contractors, not just dairy plant operators, to provide pay statements to milk producers.
Milk Contractor Records. Under current rules, dairy plant operators must keep certain records, including records of milk receipts and payments. This rule re-codifies, but does not change, current record keeping requirements for dairy plant operators. This rule requires all milk contractors, not just dairy plant operators, to keep records.
Milk Price Discrimination. Current rules prohibit milk price discrimination by dairy plant operators. This rule does not extend the current rules to apply to other milk contractors. This rule updates some cross-references in the current rules, but does not change the current rules.
Vegetable Contractors
General. This rule requires vegetable contractors to comply with the new law, ch.
126, Stats. This rule supplements the new law, and amends or repeals rules that no longer apply.
Financial Statement; Disclosures. Under ch.
126, Stats., a vegetable contractor must file annual financial statements with DATCP if the vegetable contractor incurs more than $500,000 per year in contract obligations to producers. Other vegetable contractors may file
voluntary financial statements in order to avoid paying fund assessments or to qualify for lower fund assessments. A vegetable contractor's financial ratios may affect the following:
• The vegetable contractor's eligibility to participate in the fund.
•The amount that the vegetable contractor must contribute to the fund.
•Whether or not the vegetable contractor must file security with DATCP.
Under this rule, a vegetable contractor's financial statement must disclose and describe all of the following:• All notes, mortgages or other long-term liabilities not due or payable within one year.
•Any of the following items that are counted as assets in the financial statement:
- Any non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.
- Any note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.
- Any note or account that has been receivable for more than one year, unless the vegetable contractor has established an offsetting reserve for uncollectable notes and accounts receivable.
Financial Statement Attachments. Some of the financial disclosures required by ch.
126, Stats., and this rule may be made in notes or attachments to the financial statement. Under this rule, an attachment to a reviewed or audited financial statement must satisfy the following requirements:
• The attachment must be on the letterhead of the certified public accountant who reviewed or audited the financial statement.
•The certified public accountant who reviewed or audited the financial statement must certify, in the attachment, whether the attachment is reviewed or audited.
Security Disclosures to Producers. This rule requires vegetable contractors to make security disclosures to producers, so those producers understand the extent to which payments are backed by the agricultural security program. This rule specifies the form in which a vegetable contractor must make the disclosures. A vegetable contractor must include the disclosures in the proposed vegetable procurement contract with each producer.
Fiscal Estimate
This rule will allow some contractors to pay smaller assessments to the Agricultural Producer Security Fund. This will cause a slight loss of revenue to the fund.
Chapter
126, Stats., establishes fund assessment rates. A contractor's assessment is generally based on the contractor's financial ratios (including debt to equity ratio) and the amount of grain, milk or vegetables that the contractor procures or stores in this state. DATCP estimates that grain, milk and vegetable contractors will pay a total of approximately $2 million in assessments each year.
This rule will allow some grain dealers, grain warehouse keepers and milk contractors to reduce their annual assessments by making certain adjustments to their debt to equity ratios. The rule allows these contractors to adjust their debt to equity ratios by deducting certain liabilities that are specifically identified in the rule. Contractors may use their adjusted debt to equity ratios to calculate their fund assessments. The department estimates that the adjustments will reduce total fund contributions by $50,000 to $70,000 per year.
You may obtain a complete fiscal estimate by contacting Kevin LeRoy at 608/224-4928.
Small Business Analysis.
This rule will affect the following small businesses:
•Agricultural producers. This rule will benefit agricultural producers by improving and clarifying the producer security program.
•Grain dealers. This rule will benefit grain dealers, by allowing them to make liability adjustments when calculating their debt to equity ratio for purposes of ch.
126, Stats. But this rule will also impose some additional requirements on grain dealers (including financial statement disclosures, as well as security disclosures to producers) that may involve some added costs.
These requirements are needed for the effective implementation of the agricultural producer security law.
•Grain warehouse keepers. This rule will benefit grain warehouse keepers, by allowing them to make liability adjustments when calculating their debt to equity ratio for purposes of ch.
126, Stats. This rule will also impose some additional requirements on grain warehouse keepers (including financial statement disclosures, as well as security disclosures to depositors) that may involve some added costs. These requirements are needed for the effective implementation of the agricultural producer security law.
•Milk contractors. This rule will benefit some cheesemakers by providing a custom processing exemption, and by allowing cheesemakers to make certain liability adjustments when calculating their debt to equity ratio for the purpose of making security fund assessments. But this rule will also impose some additional requirements on milk contractors (including financial statement disclosures, as well as security disclosures to milk producers) that may involve some added costs. The rule spells out minimum standards for milk contractors who wish to qualify as producer agents. These requirements are needed for the effective implementation of the agricultural producer security law.
•Vegetable contractors. This rule will impose some additional requirements on vegetable contractors (including financial statement disclosures, as well as security disclosures to depositors) that may involve some added costs. These requirements are needed for the effective implementation of agricultural producer security law.
Notice of Hearing
Commerce
(Financial Assistance to Businesses & Commerce)
[
CR 02-116]
NOTICE IS HEREBY GIVEN that pursuant to ss.
227.14 (4m) and
227.17, Stats., the Department of Commerce will hold public hearings on proposed rules relating to the Agricultural Development Zone Program.
The public hearing will be held as follows:
Wednesday, October 16, 2002, 10:00 a.m.
T.G. Thompson Commerce Center
Conf. Rm. 3C, 3rd Fl.
201 W. Washington Ave.
Madison, WI
Interested persons are invited to appear at the hearings and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until November 1, 2002, to permit submittal of written comments from persons who are unable to attend a hearing or who wish to supplement testimony offered at a hearing.
Written comments should be submitted to:
Jean M. MacCubbin
Department of Commerce
Administrative Services Division
P.O. Box 2689
Madison, WI 53701-2689
These hearings are held in accessible facilities. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon request by a person with a disability.
Analysis of Proposed Rules
Statutory authority: s.
560.798, Stats.
Statute interpreted: s.
560.798, Stats.
Under s.
560.798 (5), Stats., the Department of Commerce has the responsibility of promulgating rules for the operation of the Agricultural Development Zone Program.
This rule is being created in response to 2001 Wisc. Act 16, which provides authority for administering such a program, the designation of an agricultural development zone, the certification of agricultural businesses, and the determination of tax benefits available to certified agricultural businesses.
The following listing highlights the major items contained in this new chapter:
· Creates the process for application and designation of the Agricultural development zone.
· Provides a means for modification of the boundary of an agricultural development zone.
· Creates the process for application and certification of agri-businesses.
· Establishes criteria for eligibility to certify agri-business.
· Creates the process to determine and claim tax benefits and notifications to the Department of Revenue.
Environmental Assessment
The proposed administrative code revision is categorized in ch.
Comm 1, WEPA, Table 1.11-2 and determined to be a Type II action.
The proposed action is administrative in nature and has no potential direct effect on the quality of the human environment. The Department considers this action to have no potential for significant adverse impact.
The Department acknowledges that some projects receiving tax benefits under this chapter may result in new construction or expansion of existing structures or facilities These actions may involve new development or rehabilitation and an application for zoning and/or a conditional use permit may be required at the local level. The department acknowledges that these actions are under local jurisdiction and generally include provisions for the compliance with local, state or federal environmental review.
Initial Regulatory Flexibility Analysis
1. Types of small businesses that will be affected by the rules.
The subject of the rules is to provide tax benefits for new and expanding agricultural businesses in a newly-designated agricultural development zone in the state. The expectation is that the creation of the zone will result in the attraction, promotion, retention or expansion of agricultural businesses and also provide economic stimulus to other businesses in the area and throughout the state.
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
Agricultural businesses certified in the agricultural development zone shall on an annual basis report to the department and may file tax claim verification with the Department of Revenue.
3. Types of professional skills necessary for compliance with the rules.
No professional skills are expected to be required by agricultural business applicants.
Fiscal Estimate
Section
560.798, Stats., as passed in the 2001/03 biennial budget, establishes the Agricultural Development Zone Program. Commerce is provided the authority to develop rules concerning the designation of an agricultural development zone and the certification of businesses within those zones. Ch.
Comm 118 thus relates mainly to establishing that process and defining key terms.
1. State Fiscal Effect. By instituting a rigorous application process, the proposed rule will increase the workload for the Department of Commerce by requiring staff to review applications and make preliminary determinations as to designation of an agricultural development zone. Commerce can absorb this new work by using existing staff.
2. Local Fiscal Effect. Under the proposed rules, towns, villages, cities, tribes, and counties, either separately or in concert, may submit agricultural development zone applications. These applications are expected to be lengthy documents requiring a significant investment of time. Costs arising from the rules are, however, permissive since communities are not required to apply for participation in the program.
Notice of Hearing
Health and Family Services
Notice is hereby given that, pursuant to s.
980.067, Stats., the Department of Health and Family Services will hold a public hearing to consider amending ch.
HFS 95, Wis. Adm. Code, relating to the custody and control of sexually violent persons placed at facilities under s.
980.065, Stats.
Hearing Information
The public hearing will be held:
Thursday, October 24, 2002 at 10:00 a.m.
Conference Room 851-R
State Office Building
1 West Wilson Street
MADISON, WI
The hearing site is fully accessible to people with disabilities. Parking for people with disabilities is available in the parking lot behind the building, in the Monona Terrace Convention Center Parking Ramp or in the Doty Street Parking Ramp. People with disabilities may enter the building directly from the parking lot at the west end of the building or from Wilson Street through the side entrance at the east end of the building.
Analysis Prepared by the Department of Health and Family Services
The Department of Health and Family Services proposes to amend the title and several provisions in ch.
HFS 95, “Use of Force: Ch.
980, Stats., Patients," and create a new section of in the chapter, entitled “Escorted Temporary Patient Leave." The proposed amendments to ch.
HFS 95 are based on the Department's experience to date administering the chapter (the chapter became effective on February 1, 2002.) The proposed creation of a section of the chapter is in response to the creation of a new section 980.067 of the Wisconsin statutes through
2001 Wis. Act 16 (the biennial budget bill.) Section
980.065 of the statutes requires the Department to place persons determined to be sexually violent at selected facilities administered by the Department. Section
980.067 authorizes the superintendent of a facility at which a sexually violent person resides to allow that person to leave the grounds of the facility under escort. Section
980.067 also directs the Department to promulgate rules that express the policies and procedures for its administration of this process.
The new section of rules being proposed by the Department, s.
HFS 95.10, addresses circumstances under which a person committed to either the Wisconsin Resource Center or the Sand Ridge Secure Treatment Center could be allowed to temporarily leave the facility for selected reasons. The Department has proposed that these reasons be limited to the following:
- To privately visit a dying or deceased relative;
- To receive medical services that are not provided at the facility;
- To engage in pre-placement activities when the patient has a proposed or approved supervised release plan under s.
980.08 (5), Stats.; or
- For other purposes consistent with the therapeutic interests of the patient and the security interests of the facility and the community.
The proposed rules also identify considerations a facility director must take into account in his or her decision to allow a patient detained or committed under chapter 980 of the statutes to leave the facility.
Contact Person
James Yeadon
Division of Care and Treatment Facilities
P.O. Box 7851, Room 850
Madison, WI 53707-7851
608-266-5525 or, if you are hearing impaired,
608-266-1511 (TTY)
To comment on or discuss the content of the proposed rule, please e-mail or phone:
Steve Watters, Director
Sand Ridge Secure Treatment Center
1111 North Rd.
P.O. Box 700
Mauston, WI 53948
608-847-1720 or,
if you are hearing impaired,
608-266-1511 (TTY)
If you are hearing or visually impaired, do not speak English, or have other personal circumstances which might make communication at the hearing difficult and if you, therefore, require an interpreter, or a non-English, large print or taped version of the hearing document, contact the person at the address or phone number above. A person requesting a non-English or sign language interpreter should make that request at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Written comments on the proposed rule received at the above address no later than November 11, 2002, will be given the same consideration as testimony presented at the hearing.
Fiscal Estimate
Any increased costs associated with the implementation of these rules were accounted for in
2001 Act 16, which created section
980.067, Stats.
Initial Regulatory Flexibility Analysis
The rule changes will not affect small businesses as “small business" is defined in s.
227.114 (1) (a), Stats.
Notice of Hearing
Health and Family Services
(Medical Assistance, Chs.
HFS 100-)
Notice is hereby given that, pursuant to s.
49.688, Stats., the Department of Health and Family Services will hold a public hearing to consider the creation of ch.
HFS 109, Wis. Adm. Code, relating to operation of the SeniorCare prescription drug assistance program. Through its emergency rulemaking authority under s.
224.24, Stats., the Department issued ch.
HFS 109 to become effective on September 1, 2002.
Hearing Information
The public hearing will be held:
Thursday, October 10, 2002 from 9:00 a.m. to Noon
Room 751
State Office Building
1 West Wilson St.
MADISON, WI
The hearing site is fully accessible to people with disabilities. Parking that accommodates people with disabilities is available in the parking lot behind the building, in the Monona Terrace Convention Center Parking Ramp or in the Doty Street Parking Ramp. People with disabilities may enter the building directly from the parking lot at the west end of the building or from Wilson Street through the side entrance at the east end of the building.
Analysis Prepared by the Department of Health and Family Services
The high cost of prescription drugs in Wisconsin and nationwide are especially burdensome on the elderly, many of whom live on a fixed income. Through
2001 Wis. Act 16, Wisconsin has addressed the problem those increasingly high costs pose to the elderly by creating s.
49.688, Stats. Section
49.688 directs the Department to develop and administer the program of prescription drug benefits for the elderly that has come to be known as “SeniorCare." The statute also directs the Department to develop administrative rules for implementing SeniorCare, which the Department has done by creating a new chapter of administrative rules, HFS 109. The rules address a variety of issues associated with operating the program in accordance with section
49.688, Stats., including specifying:
-what prescription drugs are covered;
-who is eligible for benefits and services;
-how the Department determines household income for the program's eligibility determination;
-how the Department monitors compliance by pharmacists and pharmacies; and
-mechanisms for preventing fraud and abuse.
The Department drafted these rules to parallel the prescription drug provisions of the existing Medicaid rules in chs.
HFS 101 to
108. The Department developed the program's administrative elements in consultation with an advisory committee composed of representatives of physicians, counties, seniors and pharmacies.
Individuals with prescription drug coverage under other health plans will be eligible to enroll in SeniorCare. For those who already have a health insurance plan, SeniorCare will coordinate benefit coverage with that plan. Individuals enrolled in Medicaid will not be eligible for the new program, because Wisconsin Medicaid already provides prescription drug coverage.
Contact Person
To find out more about the hearings or to request a copy of the proposed rules, you may also write, phone, or e-mail:
Alfred Matano
Division of Health Care Financing
P.O. Box 309, Room 350
Madison, WI 53701-0309
608-267-6848 or, if you are hearing impaired, (608) 266-1511 (TTY)
If you are hearing or visually impaired, do not speak English, or have other personal circumstances which might make communication at a hearing difficult and if you, therefore, require an interpreter or a non-English, large-print or taped version of the hearing document, contact the person at the address or phone number above. A person requesting a non-English or sign language interpreter should make that request at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Written comments on the emergency rules received at the above address no later than October 25, 2002 will be given the same consideration as testimony presented at the hearing.
Fiscal Estimate
SeniorCare, established by
2001 Wis. Act 16, provides prescription drug assistance to Wisconsin residents over 65 years of age whose income does not exceed 240% of the federal poverty level (FPL) and to those whose income exceeds 240% of the FPL if their prescription drug expenditures bring their net income below the 240% limit (termed spenddown). Participants of SeniorCare are required to pay an annual $20 enrollment fee and copayments of $15 for each name brand drug and $5 for each generic drug. In addition, participants with higher incomes (over 160% of FPL) must first spend $500 (deductible) of their own funds annually for prescription drugs before SeniorCare will reimburse the participant's prescription drug expenditures.
On July 1, 2002, Wisconsin's application for a federal waiver to receive federal matching funds under the MA program for SeniorCare was approved for participants with income less than 200% of the Federal Poverty Level (FPL).
The administrative rule does not have a fiscal effect per se. The fiscal effect of the SeniorCare program was taken into account when the legislation was passed. However, a number of the assumptions underlying the fiscal estimate of the SeniorCare legislation have turned out to be incorrect.
Act 16 provided $49,900,000 GPR under s.
20.435 (4) (bv), Stats., to support benefits under the SeniorCare program. Since the program first begins on September 1, 2002, funding was based on a ten-month period. In addition, when Act 16 was enacted, it was unclear whether Wisconsin would obtain a federal waiver. Consequently, funding was based on the assumption that federal funding would not be available.
Although the federal wavier will significantly reduce the need for state funds, the original cost projections substantially underestimated the benefit costs for SeniorCare. Current projections, that include the benefit of federal funding, anticipate that total SeniorCare costs in FY 03 will total $100 million all funds and $48 million GPR. The net result is that budgeted funding is projected to be adequate to fund projected costs of the program in FY 03.
Initial Regulatory Flexibility Analysis
The rules for the SeniorCare program apply to the Department, to families that are applicants or recipients of the health care coverage provided by SeniorCare and to county social service or human service departments that take applications and determine eligibility for SeniorCare. The rules will not directly affect small businesses as “small business" is defined in s.
227.114 (1) (a), Stats.
Notice of Hearing
Natural Resources
(Environmental Protection-General)
NOTICE IS HEREBY GIVEN that pursuant to ss.
292.79,
227.11 (2) and
227.24, Stats., interpreting s.
292.79, Stats., the Department of Natural Resources will hold a public hearing on Natural Resources Board Emergency Order No. RR-38-02(E) pertaining to the administration of the brownfield green space and public facilities grant program. This emergency order took effect on August 29, 2002. The brownfield green space and public facilities grant program provides grants to eligible local governmental units to fund the costs of environmental remediation activities at eligible sites or facilities that will have a long-term public benefit, including the preservation of green space, the development of recreational areas or use of a property by a local government. Eligible activities include actions to remedy environmental contamination at brownfields. Eligible local governments include cities, villages, towns, counties, redevelopment authorities, community development authorities and housing authorities.
The legislature appropriated $1 million for these grants during the 2001-2003 biennium. Local governments, or an appropriate private non-profit organization in partnership with a local government, are required to contribute matching funds as cash or in-kind, or both, equal to 20%, 35% or 50%, depending upon the amount of the grant. This rule limits the amount of funds that may be awarded for eligible activities. The rule specifies that at least 20% of the funds be allocated to grants of $50,000 or less.
NOTICE IS HEREBY FURTHER GIVEN that the hearing will be held on:
Friday, October 11, 2002 at 9:00 a.m.
Room 611A, GEF #2
101 South Webster Street, Madison
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Michael Prager at (608) 261-4927 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Estimate
Fiscal Estimate for State Costs:
There will be a one-time cost to develop this rule. At a rate of $22 per hour for 800 hours, plus a 39% fringe rate, the total one time cost would be approximately $25,000.
It will take one FTE's worth of time to implement this program on an annual basis. At a rate of $22 per hour for 2080 hours, plus a 39% fringe rate and $4000 allotted for supplies and travel, the total cost would be approximately $68,000. This time will be absorbed into the current staffing levels.
Fiscal Estimate for Local Government:
Local governments have the option for applying for a portion of the $1 million available for this grant program. There will be a match required that must be paid during the grant period by either the local governmental unit or a cooperating non-profit organization. The match level depends upon the grant request, and is 20% for grants up to $50,000, 35% for grants greater than $50,000 and below $100,000, and 50% for grants above $100,000. A grant award cannot exceed $200,000. Without this grant, communities would be paying 100% of these costs.
Written comments on the emergency rule may be submitted to Mr. Michael Prager, Bureau for Remediation and Redevelopment, P.O. Box 7921, Madison, WI 53707 no later than October 11, 2002. Written comments will have the same weight and effect as oral statements presented at the hearing. A copy of the emergency rule [RR-38-02 (E)] may be obtained from Mr. Prager.
Notice of Hearing
Natural Resources
(Environmental Protection-General)
[
CR 02-114]
NOTICE IS HEREBY GIVEN that pursuant to s.
292.65, Stats., interpreting s.
292.65, Stats., the Department of Natural Resources will hold a public hearing on the repeal and recreation of ch.
NR 169, Wis. Adm. Code, relating to the reimbursement of response action costs for response actions taken at eligible dry cleaning facilities. Chapter
NR 169 outlines the procedures for owners and operators of dry cleaning facilities to obtain cost reimbursement for cleanups conducted under the NR 700 rule series. This rule identifies eligible applicants and eligibility requirements for owners and operators taking immediate action, interim actions, site investigations and remedial actions. For eligible applicants taking immediate actions, the applications for reimbursement will be processed in the order in which they are received. The Department does not anticipate a shortage of funding for immediate response action costs. In addition, the procedures for reimbursement are streamlined because of the limited actions that would qualify under this response action phase.
For eligible applicants seeking reimbursement for interim actions, site investigations and remedial actions, the rule specifies requirements for eligible actions (including bidding requirements) as well as procedures applicants must follow to obtain reimbursement. We anticipate that within this biennium, the funds available for reimbursements to dry cleaners will not be able to meet demand. The rule establishes the allocation of funds based on the environmental priority of the site (25% for high priority, 60% for medium priority and 15% for low priority sites). Reimbursements are made within those categories based on the order in which applications are received. In addition, the rule reiterates the statutory requirements for maximum award limits and deductibles which the owners or operators of the facility must pay. In addition, the rule reiterates statutory requirements for pollution prevention and licensing requirements for dry cleaning facilities. The rule also contains cost-control measures as part of the bidding requirements for consultants conducting the response actions at dry cleaner sites.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department anticipates that this rule will provide economic relief to small dry cleaning businesses because eligible costs that they now would incur cleaning up environmental contamination may be eligible for reimbursement from this fund when moneys are available.
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
NOTICE IS HEREBY FURTHER GIVEN that the hearing will be held on:
Tuesday, October 22, 2002 at 9:00 a.m.
Video conference participation will be available at:
Room 332, Pyle Center, 702 Langdon Street, Madison
Room 139, State Office Building, 718 W. Clairemont Ave., Eau Claire
Room 1, DNR Regional Headquarters, 107 Sutliff Avenue, Rhinelander
Room 98, State Office Building, 819 N. 6th Street, Milwaukee
Room 618, State Office Building, 200 N. Jefferson Street, Green Bay
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Robin Schmidt at (608) 267-7569 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Estimate
The proposed rule changes will have no fiscal effect.
Written comments on the proposed rule may be submitted to Ms. Robin Schmidt, Bureau for Remediation and Redevelopment, P.O. Box 7921, Madison, WI 53707 no later than November 1, 2002. Comments may also be faxed to Ms. Schmidt at (608) 267-7646. Written comments will have the same weight and effect as oral statements presented at the hearing. A copy of the proposed rule [RR-41-02] and fiscal estimate may be obtained from Ms. Schmidt.
