Comparison with federal regulations
There are no federal programs comparable to the AEA program implemented by this rule. Over 15 states have “agricultural district" programs that bear some resemblance to the AEA program implemented by this rule, including the neighboring states of Illinois, Iowa, and Minnesota. However, each of those state programs has its own unique features.
None of the programs in other states is exactly comparable to the AEA program implemented by this rule, and some are more comparable to Wisconsin's farmland preservation zoning program. Some include limits on non-farm development, local planning requirements, right-to-farm protection, rewards for conservation practices, per acre property tax credits, and eligibility for participation in a conservation easement program.
Summary of data and analytical methodologies
DATCP evaluated AEA petitions in consultation with a panel that included independent reviewers. DATCP and the reviewers considered factors identified in ss. 91.84 and 91.86, Stats., as well as a variety of other factors identified in the petition forms. Petitioners were invited to submit, and did submit, extensive data and information to support their petitions.
Environmental Impact
This rule, by itself, does not have a direct impact on the environment. This rule enables eligible farmers to enter into voluntary farmland preservation agreements with the state. Those agreements will have a positive effect on the environment by preserving agricultural land and promoting compliance with state soil and water standards.
This rule is not a “major action significantly affecting the quality of the environment," for purposes of s. 1.11, Stats. No environmental impact statement is required under s. 1.11, Stats. or ch. ATCP 3, Wis. Adm. Code.
Small Business Impact
This rule, by itself, does not have any direct impact on farmers or other business owners. The designation of an AEA does not control or restrict land use. However, farm owners in an AEA are eligible to enter into voluntary 15-year farmland preservation agreements with DATCP. That enables them to claim farmland preservation tax credits under s. 71.613, Stats.
Participating farmers may claim a significant tax credit benefit for the 15-year term of their agreement ($5 per acre per year, or $10 per acre per year if the land is also covered by a certified farmland preservation zoning ordinance). The AEA designation may also help reassure farmers and investors that the affected area will remain in agricultural use. The AEA designation may encourage, and help focus, agricultural investment and development.
Farmers who choose to enter into farmland preservation agreements (in order to qualify for tax credits) may incur some costs to keep their land in agricultural use for 15 years, and to comply with state soil and water conservation requirements. Some of these farmers may already be complying with conservation standards. In any case, the decision to enter into a farmland preservation agreement is voluntary. The cost of compliance for participating (if any) may be outweighed by the tax credit benefit.
Many of the farmers who will benefit from this rule are “small businesses." This rule will have a positive effect on those small businesses. This rule will impose no new mandates on small business (farmland preservation agreements are entirely voluntary). This rule is not subject to the small business delayed effective date under s. 227.22 (2) (e), Stats.
Fiscal Estimate
As a result of this rule, farmers in the designated AEAs will be able to enter into voluntary farmland preservation agreements with DATCP. That will enable them to claim farmland preservation tax credits under s. 71.613, Stats. For farms covered by agreements, farm owners may claim an income tax credit of $5.00 per acre. If the land is also covered by a certified farmland preservation zoning ordinance, the farm owner may claim a tax credit of $10.00 per acre. The tax credits, paid by the Wisconsin Department of Revenue, will be an annual cost to the State of Wisconsin. It is not possible to know exactly how many of the acres designated as an AEA will be entered into a farmland preservation agreement. An estimate of the cost of tax credits to the state assuming 40% of the acres are covered by an agreement can be found in the fiscal estimate.
The Department of Revenue will incur some added costs for personnel, supplies and services to process tax credit claim forms and pay the tax credits. However, those costs can likely be absorbed within DOR's current operating budget.
DATCP will incur some added costs to publish in the state newspaper and for personnel, supplies and services to enter into farmland preservation agreements with farmers in the designated AEAs. However, those costs will be relatively small and can be absorbed within DATCP's current operating budget.
Farmers claiming tax credits in the designated AEAs must comply with state soil and water conservation requirements. Counties monitor compliance, and may suspend a farmer's tax credit eligibility if the farmer fails to comply. Counties in which the AEAs are located may incur some additional costs for personnel, supplies and services to monitor conservation compliance by farmers claiming tax credits pursuant to farmland preservation agreements in the designated AEAs. In many instances, that cost can be absorbed within the counties' current operating budgets.
Agency Contact Person
Questions and comments related to this rule may be directed to:
Coreen Fallat
Dept. of Agriculture, Trade and Consumer Protection
P.O. Box 8911
Madison, WI 53708-8911
Phone: (608) 224-4625
Notice of Hearing
Commerce
Licenses, Certifications and Registrations,
Ch. Comm 5
NOTICE IS HEREBY GIVEN that pursuant to ss. 101.02 (1) and (15), and 101.136, Stats., the Department of Commerce will hold a public hearing on proposed rules under Chapter Comm 5, relating to thermal insulator credentials.
Hearing Information
The public hearing will be held as follows:
Date:   August 11, 2010
Time:   1:00 PM
Location:   Thompson Commerce Building
  Conference Room 3B
  201 W. Washington Avenue
  Madison, Wisconsin
This hearing is held in an accessible facility. 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 a request from a person with a disability.
Submittal of Written Comments
Interested persons are invited to appear at the hearing 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 August 18, 2010, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to James Quast, at the Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689, or Email at jim.quast@wi.gov.
Copies of Proposed Rule
The proposed rules and an analysis of the proposed rules are available on the Internet at the Safety and Buildings Division Web site at www.commerce.wi.gov/SB/. Paper copies may be obtained without cost from Norma Sampson, at the Department of Commerce, Program Development Bureau, P.O. Box 2689, Madison, WI 53701-2689, or Email norma.sampson@wisconsin.gov, or at telephone (608) 267-7907 or TDD Relay dial 711 in Wisconsin or (800) 947-3529. Copies will also be available at the public hearing.
Analysis Prepared by Department of Commerce
Statutes interpreted
Statutory authority
Sections 101.02 (1) and (15), and 101.136, Stats., 2009 Wisconsin Act 16.
Related statutes or rules
Chapters Comm 61 to 66, Wisconsin Commercial Building Code.
Explanation of agency authority
Under 2009 Wisconsin Act 16, s. 101.136, Stats., on July 1, 2011, only individuals licensed as insulation mechanics or working under the direct supervision of licensed insulation mechanics may install or maintain thermal system insulation. The proposed rules implement the licensing mandates of Act 16. Thermal insulation is statutorily defined as a product that is used in a heating, ventilating, cooling, plumbing or refrigeration system to insulate any hot or cold surface, including a pipe, duct valve, boiler flue, or tank or equipment on or in a building.
Summary of proposed rules
The proposed rules establish administrative procedures for licensing and registration of individuals who install or maintain thermal insulation for heating, ventilating, cooling, plumbing or refrigeration systems. The proposed rules reflect the statutory provisions of s. 101.136, Stats. The rules create credentials for thermal insulation mechanics, apprentices and helpers. The rules allow acquisition of the insulation mechanic license by completing an apprenticeship or taking and passing a department licensure exam provided the individual has 1,000 hours per year of experience for at least 4 consecutive years. The rules also include a grandfathering provision to obtain the mechanic's license that would sunset on July 1, 2015. Continuing education obligations are proposed in order to renew the mechanics license.
The proposed rules also establish administrative forfeiture schedule for individuals who violate the credentialing provisions of the law or the rules.
Comparison with federal regulations
An internet search on U.S. federal regulations and U.S. federal register yielded no results regarding the licensing of thermal insulators.
Comparison with rules in adjacent states
An Internet-based search of thermal insulation mechanic licenses in the states of Illinois, Iowa, Michigan and Minnesota found that none of the states have specific rules or programs regarding these types of licenses.
Summary of factual data and analytical methodologies
The proposed rules were developed by reviewing the provisions under 2009 Wisconsin Act 16 in conjunction with the current licensing rules relating to businesses under ch. Comm 5.
Analysis and supporting documents used to determine effect on small business
The proposed credential rules implement the licensing mandates of 2009 Wisconsin Act 16. The rules most likely will affect HVAC contractors, plumbing contractors and mechanical refrigeration contractors. The fee for a thermal insulation mechanic's license is proposed at $500. The fee for the registration of apprentices and helpers is proposed at $15. The department estimates that 500 individuals will seek to acquire the mechanic's license and 250 individuals will seek to obtain the apprentice or helper registration. The mechanic's license, helper's registration and apprentice's registration are each valid for 2 years. The credential fees were established to offset the cost of the thermal insulation inspector position created under 2009 Wisconsin Act. 16.
An economic impact report has not been required pursuant to s. 227.137, Stats.
Small Business Impact
Initial regulatory flexibility analysis
Types of small businesses that will be affected by the rules.
Under 2009 Wisconsin Act 16, s. 101.136, Stats., on July 1, 2011 and the proposed rules only individuals licensed as insulation mechanics or working under the direct supervision of licensed insulation mechanics may install or maintain thermal system insulation. Thermal insulation is statutorily defined as a product that is used in a heating, ventilating, cooling, plumbing or refrigeration system to insulate any hot or cold surface, including a pipe, duct valve, boiler flue, or tank or equipment on or in a building. The credential rules would most likely affect HVAC contractors, plumbing contractors, and mechanical refrigeration contractors.
Reporting, bookkeeping and other procedures required for compliance with the rules.
The rules which reflect Act 16 allow acquisition of insulation mechanic license by completing an apprenticeship or taking and passing a department licensure exam provided the individual has 1,000 hours per year of experience for at least 4 consecutive years.
The renewal of thermal insulation mechanic licenses will continue to be contingent upon the fulfillment of continuing education obligations.
Types of professional skills necessary for compliance with the rules.
No other types of professional skills are necessary for compliance with the rules.
Rules have a significant economic impact on small businesses?
No.
Small business regulatory coordinator
The small business regulatory coordinator for the Department of Commerce is Carol Dunn, who may be contacted at telephone (608) 267-0297, or Email at carol.dunn@wisconsin.gov.
Environmental Impact
The Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The proposed rules establish administrative procedures for licensing and registration of individuals who install or maintain thermal insulation for heating, ventilating, cooling, plumbing or refrigeration systems. The proposed rules reflect the statutory provisions of 2009 Wisconsin Act 16, s. 101.136, Stats. The Act requires credentialed individuals to perform thermal insulation work as of July 1, 2011. The rules create credentials for thermal insulation mechanics, apprentices and helpers. The department anticipates that workload associated with the credentialing processes can be absorbed within current resources and staff levels.
The credential rules would most likely affect HVAC contractors, plumbing contractors, and mechanical refrigeration contractors. The fee for a thermal insulation mechanic's license is proposed at $500 which reflects statutory provisions. The fee for the registration of apprentices and helpers is proposed at $15. The department estimates that 500 individuals will seek to acquire the mechanic's license and 250 individuals will seek to obtain the apprentice or helper registration. The mechanic's license and helper's registration is valid for 2 years and the apprentice's registration is valid for one year. Based upon these assumptions the department would realize an annual increase in revenue of $126,875. The credential fees were established to offset the cost of the thermal insulation inspector position created under 2009 Wisconsin Act. 16.
State fiscal effect
Increase existing revenues.
Increased costs may be possible to absorb with agency's budget.
Fund sources affected
PRO.
Local government fiscal effect
None.
Long-range fiscal implications
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Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.