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.
