•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.
