Rule-making notices
Notice of Hearings
Agriculture, Trade and Consumer Protection
[
CR 02-121]
Rule Related to Plant Inspection and Pest Control.
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection announces that it will hold public hearings on a proposed rule to repeal s.
ATCP 21.05 (3) (c); to renumber s.
ATCP 21.01 (10) to
(15); to repeal and recreate s.
ATCP 21.05 (3) (a) and
(b) and to create s.
ATCP 21.01 (9) and
(10) and s.
ATCP 21.16; relating to plant pests and certification and service fees. The department will hold two 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 December 2, 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 Agricultural Resource Management, 2811 Agriculture Drive, P.O. Box 8911, Madison WI 53708, or by calling (608) 224-4574. 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 22, 2002, by contacting Paula Noel, Division of Agricultural Resource Management, P.O. Box 8911, Madison, WI 53708-8911, telephone (608) 224-4574 or email
paula.noel@datcp.state.wi.us. 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 29, 2002, 1:00 p.m. until 3:00 p.m.
WI Dept. of Agriculture, Trade & Consumer Protection
Room 266
2811 Agriculture Drive
Madison, WI 53718
Handicapped accessible
Wednesday, October 30, 2002, 1:00 p.m. until 3:00 p.m.
WI Dept. of Natural Resources Service Center
5301 Rib Mountain Road
Wausau, WI 54401
Handicapped accessible
Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection
This rule modifies fees for plant inspection and certification services. It also establishes import controls on hemlock plants and plant products, to prevent the introduction of a serious hemlock pest in this state.
Fees for Plant Inspection and Certification
The Wisconsin department of agriculture, trade and consumer protection (DATCP) inspects plants, plant products and bees (apiaries) at the request of persons who wish to export those products. DATCP provides this inspection service, for a fee, under ch.
94, Stats. Based on its inspection, DATCP certifies that the plants, plant products or bees are apparently free of harmful diseases and pests. DATCP establishes inspection and certification fees by rule. This rule modifies DATCP's current fee formula. This rule will increase fees for some requesters, and reduce fees for others.
Under the current fee formula, DATCP charges for mileage (32.5¢ per mile), food and lodging costs, plus $20 per hour for staff time. There is a minimum fee of $20 per inspection. Because most inspectors are based in Madison, charges increase with distance from Madison. DATCP also charges a fee of $15 per certificate issued. Current fees do not cover indirect costs related to general pest surveys, trapping and testing, although those activities provide important information for the certification process.
This rule establishes a new “flat" fee of $50 for each inspection certificate that it issues. There will be no other charge for inspection, travel, food or lodging costs (except for field inspections of crops). The flat fee will cover these costs, as well as a portion of DATCP's indirect costs for pest surveys, pest trapping and laboratory analysis. The flat fee is expected to generate approximately $30,000 in additional revenues for the program as a whole.
This rule establishes a lower fee of $15 for certificates that merely certify the identity or origin of plants or plant materials, without certifying that they are disease-free or pest-free. This rule maintains the current fee of $15 for ginseng shipment certificates issued under s.
94.50 (3), Stats.
The following table shows the current and proposed fees.
Activity or Certificate
|
Current Fee
|
Proposed Fee
|
Requested inspections of plants, plant products, bee colonies and related materials.
|
$20/hour for inspection and travel time plus vehicle mileage, meal and lodging expenses. Minimum charge is $20.
|
No separate fee, except for field inspections of crops (see below). Aggregate costs are covered by certificate charges (see below).
|
Field inspection of crops such as corn, sunflowers, soybeans, onions, potatoes, snap beans and turf.
|
$1.50 per acre (minimum $50), plus mileage, food and lodging expenses.
|
$1.50 per acre (minimum $50) plus mileage, food and lodging expenses.
|
Certification that materials are disease-free or pest-free (phytosanitary certificate, plant health certificate or apiary inspection certificate).
|
$15 per certificate.
|
$50 per certificate.
|
Ginseng shipment certificate.
|
$15 per certificate.
|
$15 per certificate.
|
Hemlock Woolly Adelgid; Import Controls
DATCP regulates the movement of plant pests under s.
94.01(1), Stats. Currently, the states of Alaska, California, Oregon and Washington, and portions of 13 other states, are infested with hemlock woolly adelgid. Hemlock woolly adelgid is a serious pest that kills native and ornamental hemlock trees, an important Wisconsin resource. This rule prohibits imports of the following items from infested areas identified in the rule:
•
Hemlock seedlings or nursery stock.
•
Hemlock logs or lumber with bark.
•
Uncomposted hemlock chips with bark.
•
Uncomposted hemlock bark.
This prohibition does not apply if any of the following apply:
•
A pest control official in the state of origin inspects the imported items and certifies any of the following in a phytosanitary certificate that accompanies the import shipment:
- That the items originate from non-infested premises and have not been exposed to hemlock woolly adelgid.
- That the items were found, at the time of inspection, to be free of hemlock woolly adelgid.
- That the items have been effectively treated to destroy hemlock woolly adelgid. The phytosanitary certificate shall specify the pesticide or other treatment used.
- That the items are produced, processed, stored, handled or used under conditions, described in the phytosanitary certificate, that effectively preclude the transmission of hemlock woolly adelgid.
•
The items are imported under a written agreement between the importer and DATCP. DATCP may cancel the agreement at any time. The agreement must specify import terms and conditions including:
- The name and address of the importer and import recipient.
- The proposed source and destination of each import shipment.
- The proposed import dates or time period.
- The items to be imported in each proposed shipment.
- The proposed size and frequency of import shipments.
- The proposed method of import.
- Required import conditions that will, in the department's opinion, effectively prevent the spread of hemlock woolly adelgid.
These import controls imposed by the rule would have some costs in terms of notifying affected industries but could be absorbed by existing staff. The department will present information through development of written material, press releases, and cooperative efforts with affected industries. Ongoing duties would be to monitor industry compliance with the rule. Industry compliance is already monitored for other sections of
ATCP 21 and this new section would be a small addition.
Fiscal Estimate
The changes in the inspection and certification service fees would increase revenues to a program revenue account. Existing fees do not cover actual expenses of the program. The new fee structure will allow the department to recover the cost of administering the phytosanitary program.
Initial Regulatory Flexibility Analysis
Fees for Plant Inspection and Certification & Hemlock Woolly Adelgid; Import Controls
This rule repeals and recreates Wisconsin's current Inspection and Certification rules. This rule creates a fee of $50.00 per certificate, which will include mileage, meals, lodging and staff time for inspection and travel. The current fee for certification is $15.00 for a certificate, plus mileage (.325 cents/mile), meals, lodging and staff time ($20.00/hour, with a $20.00 minimum) for inspection and travel.
This rule also creates import controls for hemlock woolly adelgid, a serious pest of hemlock trees in the eastern US. This insect has been intercepted on nursery stock in other states and can possibly be spread by logs, mulch or bark chips of hemlock trees.
Small Businesses Affected by this Rule
A “small business," as defined in s.
227.114 (1) (a), Stats., means a business entity, including its affiliates, which is independently owned and operated and 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.
Small nurseries and sole proprietors shipping interstate or internationally are the small businesses that will be affected by this rule.
Effects on Small Business
This rule may have some impact on nurseries in Wisconsin that purchase hemlock nursery stock from states infested with hemlock woolly adelgid, because costs incurred by nurseries in other states to meet our requirements may be passed along to the receiving nurseries in Wisconsin. There would be no extra skills required since nurseries deal with similar certificates for other plant pests.
The fee increase for certificates ($15 to $50) may decrease the number of certificates issued by a small amount. Some businesses, mostly larger enterprises, request certificates as a sort of insurance policy; the country to which they are exporting doesn't require a certificate but having one expedites the importation of the commodity. Many of the companies will pass the increased cost onto their customers.
Small businesses may see more efficient turnaround time in receiving their certificates since no calculations will need to be made by the department concerning mileage, meals, hours and lodging. Small nursery businesses receiving plant health certificates may reconsider their current practice of requesting the certificate if they don't ship nursery stock interstate because of the increase in the fee.
Notice of Hearings
Agriculture, Trade and Consumer Protection
[
CR 02-113]
(reprinted from 9/30/02 Wis. Adm. Register)
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
See page 22, 9/30/02, Wis. Adm. Register.
Small Business Analysis.
See page 22, 9/30/02, Wis. Adm. Register.
Notice of Hearing
Health and Family Services
(Health – HFS 110-)
[
CR 02-117]
Notice is hereby given that, pursuant to s.
253.12 (3) (a), Stats., the Department of Health and Family Services will hold a public hearing to consider the repeal and recreation of ch.
HFS 116, Wis. Admin. Code, relating to a birth defect prevention and surveillance system.
Hearing Date, Time and Location
The public hearing will be held:
November 6, 2002 Conference Room 751
Wednesday State Office Building
From 2:00 p.m. to 4:00 p.m. 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
Beginning in 1989, the Department of Health and Family Services administered a program that collects, analyzes and disseminates information about adverse neonatal outcomes, birth defects, developmental disabilities and other severe disabilities in children from birth to age 6. The program was known as the Birth Defect Outcome and Monitoring Program.
1999 Wisconsin Act 114, enacted on May 8, 2000, replaced the Birth Defect Outcome and Monitoring Program with the Birth Defect Prevention and Surveillance System. The new system has several differences from the previous reporting program:
1. The definitions of reportable conditions under Act 114 differ from the old statute language. A birth defect is defined as a structural deformation, disruption or dysplasia, or an inherited or biochemical disease.
2. Only birth defects in infants and children up to the age of 2 must be reported to the Department.
3. The list of persons who must report a birth defect to the Department is expanded beyond physicians to include pediatric specialty clinics. Hospitals may, but are not required to report birth defects to the Department.
4. The Department becomes responsible for establishing and maintaining an up-to-date registry of birth defects that have occurred in Wisconsin in the previous 10 years.
5. A new entity known as the Council on Birth Defect Prevention and Surveillance is created for the purpose of making recommendations to the Department regarding the establishment of the registry, the Department's administrative rules and the content of the reports required from medical care providers. Beginning in April 2002, the Council is to biennially report to the legislature on the utilization and progress of the registry.
1999 Wisconsin Act 114 maintains the preexisting mechanisms that ensure the confidentiality of data by requiring parental or guardian written consent before reporting an infant's or a child's name and address or releasing an infant's or a child's name and address.
Contact Person
To find out more about the hearing, or to comment on the proposed rule, please write or phone:
Sally Meyer
Division of Public Health
Family Health Section
P.O. Box 265
Madison, WI 53701-2569
Ph. 608-267-9510 or, if you are hearing impaired, 1-800-947-3524 (TTY)
Fax 608-267-3824
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 Wednesday, November 13, 2002, will be given the same consideration as testimony presented at the hearing.
Fiscal Estimate
The rule will not result in additional workload. Therefore, there is no cost to the state resulting from these rule changes.
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
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 the attached proposed rulemaking order affecting s.
Ins 3.39, Wis. Adm. Code, relating to Medicare supplement insurance.
Hearing Information
Date: November 7, 2002
Time: 10:30 a.m.
or as soon thereafter as the matter may be reached
Place: Room 23, OCI,
121 East Wilson St.
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: Julie E. Walsh, OCI, PO Box 7873, Madison WI 53707
Summary of Fiscal Estimate
There will be no state or local government fiscal effect.
Analysis Prepared by the Office of the Commissioner of Insurance
Due to changes in federal law as a result of the Medicare, Medicaid and SCHIP Benefits Improvement and Protection Act (“BIPA"), amendments are necessary in order that Wisconsin Medicare supplement insurance regulation is in compliance with the national association of insurance commissioners (“NAIC") Medicare supplement insurance minimum standards model act modifications.
Under the previous federal law and model act a potential timing gap was created such that persons who were provided notice of cessation or termination of employee welfare benefit plans in excess of 63 days were put in an untenable position of withdrawing early from the employee welfare benefit plan that may have attractive insurance features (such as more comprehensive coverage) and switch to the Medigap policy so not to risk losing their guaranteed issue rights as they are unable to simultaneously keep a Medigap application current or delay the effective date of the policy beyond the 63 day window. The modifications to BIPA and the NAIC model act, and regulation and as reflected in the changes made to s. INS 3.39, altered time periods to provide the broadest application of when and how the guaranteed issue period is triggered and calculated for eligible persons as defined within s.
Ins 3.39 (34) (b) to alleviate most of the potential problems.
Specifically, s.
Ins 3.39 (34) (c), as newly created, provides that the guaranteed issue period for persons enrolled in an employee welfare benefit plan begins on the later of two dates; the date the individual receives a notice of termination or cessation of all supplemental health benefits and ends 63 days after the date of termination of the coverage. Or, if the individual was not directly notified, the date the individual received notice that a claim has been denied because the plan terminated or ceased offering insurance and ends 63 days after the date of the actual notice of the denied claim.
Section Ins 3.39 (34) (b), describes several additional distinct groups of persons who may be eligible for guaranteed issue of Medicare supplement or Medigap coverage. Several subsections within s. Ins 3.39 (34) (b) were modified slightly without significant changes. Modifications made to s. Ins 3.39 (34) (c) reference the different groups of eligible persons and specific situations that then trigger guaranteed issue rights and provides time periods specific to each situation.
Modifications were also made for extended Medicare supplement insurance guaranteed issue as a result of interrupted trial periods. Section Ins 3.39 (34) (d), describes the circumstances of how and when such an extension is applicable for eligible persons who had a Medicare supplement policy and subsequently enrolled, for the first time, in a Medicare + Choice or other described plan under s. Ins 3.39 (34) (b) 5. and 6., the manner in which the guaranteed issue period of time will be treated.
Other modifications made in this proposed rule include clarification of eligible expenses that are to include outpatient services paid under the prospective payment system and correcting references to Medicare supplement insurance and federal provisions.
Initial Regulatory Flexibility Analysis
This rule does not impose any additional requirements on small businesses.
Contact Person
Inger Williams, Services Section
Office of the Commissioner of Insurance
(608) 264-8110
or at
121 East Wilson Street
PO Box 7873
Madison WI 53707-7873
