SB445: Bill Text

LRB-4560/1

RCT/RJM/PJK:all:kjf

2001 - 2002 LEGISLATURE

2001 Senate BILL 445

February 20, 2002 - Introduced by Senators Burke, Baumgart and Shibilski, cosponsored by Representatives Miller, Hebl and Schneider. Referred to Committee on Labor and Agriculture.

SB445,2,15 An Act to repeal 421.202 (10) and 422.210; to renumber and amend 92.07 (2), 92.105 (1), 234.92, 283.91 (3) and 424.208 (1); to amend 92.05 (3) (k), 92.14 (6) (gm), 92.15 (4), 281.16 (3) (e), 281.16 (4), 283.55 (2) (title), 283.91 (2), 421.301 (17), 422.203 (4) (c), 422.207 (1), 422.209 (2) (b) 1., 422.209 (2) (b) 2., 422.411 (1), 422.412, 422.413 (1), 422.417 (1) (c), 422.417 (1) (d), 422.417 (2), 422.418 (2), 422.501 (3), 423.201 (1) (intro.), 425.103 (2) (a), 425.206 (1) (b), 425.206 (1) (c), 425.207 (2), 425.208 (1) (intro.), 425.208 (1) (cm), 427.102, 427.103 (1), 427.104 (1) (intro.) and 560.17 (5c) (a) (intro.); and to create 20.115 (4) (cm), 20.115 (7) (cm), 20.115 (7) (he), 20.285 (1) (eb), 20.370 (4) (ai), 36.25 (16), 92.03 (5m), 92.07 (2) (a) 1. to 3., 92.105 (1) (a) 1. to 3., 92.22, 93.07 (3m), 93.45, 93.46 (3), 100.185, 234.92 (2), 234.93 (2) (am), 281.17 (11), 281.18, 283.01 (6s), 283.31 (1m), 283.31 (9), 283.38, 283.43 (1) (am), 283.43 (1m), 283.55 (1s), 283.55 (2) (am), 283.60, 283.91 (3) (b), 422.201 (12), 422.413 (2), 422.417 (1) (e), 424.208 (1) (b), 424.301 (1) (b) 4., 425.114, 425.206 (1) (d), 560.17 (5c) (am) and 560.17 (5g) of the statutes; relating to: regulation of large animal feeding operations, agricultural nutrient management planning, water pollution discharge permits for certain livestock operations, construction and operation of certain animal waste storage facilities, controlling emissions of ammonia and hydrogen sulfide; including agricultural consumer transactions within the general scope of the Wisconsin Consumer Act; documentation of agricultural credit transactions; grants relating to agriculture and rural economic development; marketing agricultural products, rural economic development loans, sustainable agriculture research, dairy profitability, assistance for beginning farmers; a study of the dairy and livestock industries; prohibiting an application fee for applying to the agricultural production loan guarantee program and requiring lenders making loans that are guaranteed by the Wisconsin Housing and Economic Development Authority to employ certain policies before foreclosing on security interests obtained in connection with the loans granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

This bill makes numerous changes in the laws relating to agriculture and the environment. Some of the provisions apply to large animal feeding operations. A "large animal feeding operation" is defined as a feedlot or facility, other than a pasture, where 1,000 animal units or more are, or will be, fed, confined, maintained, or stabled for a total of 45 consecutive days or more in any 12-month period. An animal unit is a measure determined by the department of natural resources (DNR) to equate different kinds of animals. One thousand animal units are equivalent to 1,000 beef cattle.

Water pollution discharge permits

Current law prohibits the discharge of pollutants into the waters of this state from a point source (such as a pipe) without a discharge permit from DNR. A large animal feeding operation is considered a point source. This bill prohibits a person from establishing a large animal feeding operation or expanding a smaller operation so that it becomes a large animal feeding operation until the person has obtained a discharge permit. If a livestock integrator exercises substantial control over the operations of a livestock operation for which a discharge permit is required, the bill requires DNR to issue the discharge permit in the name of the livestock integrator as well as the operator of the livestock operation. A "livestock integrator" is a person who provides livestock to the operator of a livestock operation and either has an ownership interest in the livestock or establishes management and production standards that must be followed by the operator for the care of the livestock. Under the bill, the operator and the livestock integrator are jointly responsible for violations of the discharge permit.

Current law establishes a minimum penalty of $10 per day of violation for violations of the laws relating to pollution discharge permits, except that the minimum penalty does not apply to violations by animal feeding operations. The maximum civil and criminal monetary penalties range from $10,000 to $50,000 per day. This bill eliminates the exception from the minimum penalty for violations by animal feeding operations and reduces the maximum penalty for violations by animal feeding operations to $1,000 per day of violation. The bill requires DNR to promulgate rules specifying requirements for periodic reports by operators of large animal feeding operations about compliance with discharge permits. The bill requires DNR to make specified information about large animal feeding operations available to the public.

The bill establishes a $250 application fee to be paid by every applicant for a pollution discharge permit. The bill requires DNR to use the proceeds of the fee for permitting animal feeding operations and monitoring their compliance with permits.

This bill requires DNR to promulgate rules establishing best management practices for controlling air emissions of ammonia and hydrogen sulfide at large animal feeding operations. The bill requires DNR to condition issuance of a water pollution discharge permit to a large animal feeding operation on compliance with the best management practices.

Other provisions related to water quality

This bill prohibits a person from beginning to operate an animal waste storage facility with a capacity greater than 3,000,000 gallons before the person provides DNR with proof of financial responsibility ensuring the availability of funds to cover the costs of cleaning up a spill of animal waste from the animal waste storage facility.

The bill prohibits a person from constructing an animal waste storage lagoon on land that is hydraulically connected to a stream that is classified by DNR as a trout stream.

Current law requires DNR to promulgate rules prescribing performance standards and prohibitions that are designed to achieve water quality standards by limiting pollution from agricultural facilities and practices that are nonpoint sources of water pollution. The law requires the department of agriculture, trade and consumer protection (DATCP) to prescribe conservation practices and technical standards to implement DNR's performance standards and prohibitions. Under current law, these nonpoint source requirements may not be applied to an agricultural facility or practice that was constructed or begun before October 14, 1997, unless financial assistance is available to the owner or operator. This bill provides that the requirements may be applied to a large animal feeding operation that was constructed or begun before October 14, 1997, without regard to whether financial assistance is available to the owner or operator.

Current law requires DATCP to promulgate rules to improve agricultural nutrient management. This bill requires DATCP to establish a nutrient management certification program and to require a person who prepares a nutrient management plan to be certified. This bill also establishes a program under which DATCP provides grants to pay a portion of the cost of developing and implementing agricultural nutrient management plans required by state or federal law. The bill requires DATCP to give priority to grants for agricultural operations that have never had a nutrient management plan.

Soil and water resource management program

Under current law, DATCP administers a soil and water resource management program. The program provides funds to counties which may use the funds to provide grants for land and water resource management projects and for the construction of animal waste management systems. This bill prohibits counties from providing grants of more than $50,000 under the soil and water resource management program.

Wisconsin Consumer Act coverage and documentation of agricultural credit transactions

Under current law, a transaction in which a consumer is granted credit in an amount of $25,000 or less and which is entered into for personal, family, or household purposes (consumer credit transaction) is generally subject to the Wisconsin Consumer Act (consumer act). The consumer act provides obligations, remedies, and penalties that current law generally does not require for other transactions. With certain limited exceptions, the consumer act currently does not apply to a transaction that is entered into primarily for an agricultural purpose.

This bill expands the coverage of the consumer act to generally include any transaction which is entered into for agricultural purposes and in which a consumer is granted credit in an amount of $25,000 or less. The bill also creates provisions that apply specifically to certain transactions that are entered into for agricultural purposes and that relate to the calculation of unearned finance charges that must be rebated upon prepayment of the transaction; charges for taking and holding collateral and preparing collateral for sale; limits on security interests granted under the transaction; permissible amounts of credit life insurance and insurance against loss or damage to collateral or leased goods; the determination of whether a customer is in default; repossession of certain farm products that are used as collateral; the customer's right to redeem after default; and prohibiting any part of the transaction from requiring the consumer to pay attorney fees.

Under this bill, certain transactions that are entered into for agricultural purposes continue to be excluded from provisions of the consumer act relating to methods of calculating finance charges; limits on delinquency charges; required notices regarding preservation of collateral; limits on a customer's liability upon expiration of a consumer lease; determination of security interests in consolidated transactions; the right to cancel certain transactions that are entered into following mail, telephone, or other specified solicitations; and repossession of collateral.

This bill also requires every document that is signed by a person and that evidences the person's obligation to pay under an agricultural credit transaction to be executed in duplicate original copies. The bill requires the person that extends the agricultural credit to provide one of the duplicate original copies to the person that obtains the credit.

Agricultural grants, education, research, and promotion

Under current law, DATCP makes agricultural diversification grants to fund projects directed toward new or alternative technologies and practices that will stimulate agricultural development and economic activity. This bill increases the funding for agricultural diversification grants. This bill also requires DATCP to conduct education and outreach to promote the use of managed grazing, organic dairying, and other organic agricultural production practices and to make grants to help farmers adopt these practices.

Under current law, the department of commerce and the rural economic development board administer a program to provide grants for starting, expanding, or modernizing a dairy farm or other agricultural business. This bill requires the rural economic development board to award grants for starting, expanding, or modernizing dairy farms in such a manner that the average herd size of the recipients of the grants does not exceed the average herd size of dairy farms operating in this state. This bill also expands the rural economic development program by authorizing the rural economic development board to award loans to individuals for farm operating costs and for the costs of starting agricultural businesses.

This bill establishes a sustainable agricultural research grant program to be administered by the center for integrated agriculture systems of the University of Wisconsin System and provides funding for the center to increase enrollment in short courses for beginning dairy farmers and beginning market gardeners and for research on effective strategies for beginning farmers. The bill provides funding for the center for dairy profitability of the University of Wisconsin System for research on low-capital strategies for improving the profitability of moderate scale dairy farms. The bill also provides funding to the technical college system board for improving and expanding programs for beginning farmers.

Various provisions in current law require DATCP to promote the agricultural products of this state. This bill requires DATCP to administer, and provides funding for, a Buy Wisconsin market development program to promote this state's farm-raised food products and to assist state agencies and local governmental units to purchase products directly from Wisconsin producers, producer organizations, and speciality food companies.

This bill requires the Program on Agricultural Technology Studies of the University of Wisconsin-Madison to conduct a study of the degree of concentration in the dairy and livestock industries and of the social and economic impacts of that concentration on consumers, small farms, and small communities. The bill also requires the department of justice to determine what efforts should be taken to deal with antitrust and unfair trade practices in agriculture.

WHEDA loan guarantee programs

The Wisconsin housing and economic development authority (WHEDA) administers a number of loan guarantee programs under which WHEDA guarantees repayment of a percentage of the outstanding principal amounts of loans made by private lenders to qualified borrowers for various business and agricultural purposes. WHEDA enters into guarantee agreements, addressing such issues as default procedures and procedures for determining the percentage of loan principal that WHEDA will guarantee, with private lenders wishing to participate in the loan guarantee programs. WHEDA is authorized to charge fees for providing financial assistance under the loan guarantee programs.

This bill provides that, in every guarantee agreement, the private lender must agree to use loan servicing and forbearance policies to the fullest extent allowed under state and federal law before initiating proceedings to foreclose on any security interest obtained by the private lender to secure repayment of a guaranteed loan. The bill also prohibits WHEDA from charging an application fee to a farmer applying for a loan guarantee under the agricultural production loan guarantee program, under which WHEDA guarantees loans made to farmers to finance the production of agricultural commodities.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB445, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB445, s. 2 Section 2. 20.115 (4) (cm) of the statutes is created to read:

SB445,7,3 20.115 (4) (cm) Organic agricultural production. The amounts in the schedule for organic agricultural production education, outreach, and grants under s. 93.45.

SB445, s. 3 Section 3. 20.115 (7) (cm) of the statutes is created to read:

SB445,7,6 20.115 (7) (cm) Nutrient management grants. The amounts in the schedule for nutrient management grants under s. 92.22.

SB445, s. 4 Section 4. 20.115 (7) (he) of the statutes is created to read:

SB445,7,9 20.115 (7) (he) Agricultural nutrient management. All moneys received under s. 92.05 (3) (k), for activities related to agricultural nutrient management.

SB445, s. 5 Section 5. 20.285 (1) (eb) of the statutes is created to read:

SB445,7,12 20.285 (1) (eb) Sustainable agriculture research grants. The amounts in the schedule for sustainable agriculture research grants under s. 36.25 (16).

SB445, s. 6 Section 6. 20.370 (4) (ai) of the statutes is created to read:

SB445,7,16 20.370 (4) (ai) Water resources — animal feeding operations. From the general fund, all moneys received under s. 283.38 for permitting and monitoring compliance of concentrated animal feeding operations.