Rule-Making Notices (Hearing Notices)

rulemaking_notices Wisconsin Administrative Register No. 699, 3/31/2014

Rule-Making Notices

Notice of Hearing

Agriculture, Trade and Consumer Protection

rulemaking_notices CR 14-026 CR 14-026

(DATCP DOCKET # 13-R-16)

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announces that it will hold a public hearing on an emergency and proposed rule to revise Chapter ATCP 161, relating to dairy processor grants.

DATCP will hold a public hearing at the time and place shown below.

Hearing Date and Location

Date:   Friday, April 18, 2014
Time:   9:30 a.m. to 11:30 p.m.
Location:   Room 472
  Department of Agriculture, Trade and
  Consumer Protection
  2811 Agriculture Drive
  Madison, WI 53718-6777

Hearing impaired persons may request an interpreter for this hearing. Please make reservations for a hearing interpreter by April 4, 2014, by writing to Mike Bandli, Division of Agricultural Development, P.O. Box 8911, Madison, WI 53708-8911; or by emailing [e-mail]; or by telephone at [phone]. Alternatively, you may contact the DATCP TDD at [phone]. The hearing facility is handicap accessible.

Place Where Comments are to be Submitted and Deadline for Submission

DATCP invites the public to attend the hearing and comment on the emergency and proposed rule. Following the public hearings, the hearing record will remain open until May 2, 2014, for additional written comments. Comments may be sent to the Division of Agricultural Development at the address below, or to [e-mail], or to http://adminrules.wisconsin.gov.

Copies of the Rule and Comments Relating to Small Business

You can obtain a free copy of the emergency and hearing draft rule and related documents including the economic impact analysis by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Agricultural Development, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling [phone] or by emailing [e-mail]. Copies will also be available at the hearing. To view the emergency and hearing draft rules online, go to: http://adminrules.wisconsin.gov.

Comments or concerns relating to small business may also be addressed to DATCP's small business regulatory coordinator Keeley Moll at the address above, or by email to [e-mail], or by telephone at [phone].

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

This proposed rule implements the “Wisconsin dairy processor" grant program created under ss. 20.115 (4) (dm) and 93.40 (1) (g), Stats., by 2013 Wisconsin Act 20 (biennial budget act). Under s. 93.40 (1) (g), Stats., the Department of Agriculture, Trade and Consumer Protection (“DATCP") is authorized to award grants and loans to dairy producers for projects designed to promote the growth of the dairy industry. The budget act created an annual appropriation in DATCP of $200,000 for each year of the biennium for grants to dairy processors. (See s. 20.115 (4) (dm), Stats.)

This proposed rule does all of the following:

•   Authorizes DATCP to make grant awards and distribute grant funds appropriated for the “Wisconsin dairy processor" grant and loan program.

•   Applies the procedures and criteria that DATCP currently uses for dairy producer grants and loans funded under s. 20.115 (4) (d), Stats., to grants for dairy processors funded under s. 20.115 (4) (dm), Stats.

Statutes interpreted

Sections 20.115 (4) (dm) and 93.40 (1) (g), Stats.

Statutory authority

Sections 20.115 (4) (dm), 93.40 (1) (g), and 93.07 (1), Stats.

Explanation of statutory authority

Section 93.07 (1), Stats., directs DATCP to make such regulations as are necessary for the discharge of all the powers and duties of the department. While granting the authority to make grants to dairy processors, the budget language does not specify the bases for grant determinations. The agency considers it necessary to adopt rules to establish the bases for grant determinations in order to effectuate the purposes of ss. 20.114 (4) (dm) and 93.40 (1) (g), Stats. This proposed rule implements the “dairy processor" grant program.

Related rules or statutes

There are no directly related rules or statutes, other than those cited above. DATCP rules for the “dairy processor" grant program will be incorporated in subchapter of ch. ATCP 161, Wis. Adm. Code (agricultural development and market promotion).

Plain language analysis

The “dairy processor" grant program is designed to promote the growth of the dairy industry by providing grants to dairy processors. The biennial budget act appropriated $200,000 in grant funding for each year of the FY 2013-15 fiscal biennium. This proposed rule spells out grant procedures and criteria. Under this proposed rule, the “dairy processor" grant program will support projects proposed by dairy processors intended to expand and diversify the dairy industry.

Grant purposes

Under this proposed rule, DATCP may award grants for projects that create, expand, diversify or promote any of the following:

•   New capital investment in the dairy industry.

•   New technologies or practices related to dairy production.

•   Improvement of the competitive position of the Wisconsin dairy industry.

•   Efficient use of farmland and other agricultural resources for dairy production.

•   Employment in the dairy industry.

Grant limits

Under this proposed rule, DATCP may award no more than $50,000 of grant funding to any person or entity in any state fiscal biennium. Once DATCP makes a grant award, DATCP may make the actual grant payments over an original contract term of up to 3 years.

Matching contribution

DATCP may give preference to applicants providing matching funds which may be in the form of capital, land, labor, equipment or cash related to the grant project.

Use of grant funds

Under this proposed rule, grant funds may be used to reimburse any of the following expenses if those expenses are a reasonable and necessary part of the grant project:

•   Operating expenses, including expenses for salaries and wages, contract and consulting services, travel, supplies and public information.

•   Equipment rental.

•   The purchase of equipment whose full value is ordinarily depreciable within one year.

Grant funds may not reimburse any of the following expenses:

•   Real estate purchases.

•   Repayment of loans or mortgages.

•   Rent or contract payments for time periods extending beyond the term of the grant contract.

•   Equipment purchases, except for certain equipment purchases and depreciation expenses specifically authorized by this rule.

•   Administrative or overhead costs that are not direct costs of the grant project.

Grant proposals

Under this proposed rule, DATCP must issue at least one request for grant proposals in each state fiscal biennium (DATCP may issue more frequent requests, if it chooses to do so). The request for proposals must describe the required form and content of grant and loan proposals, and must specify a deadline for submitting grant proposals. Applicants must submit grant proposals to DATCP, in the manner prescribed by DATCP's request for proposals.

Grant awards

Under this proposed rule, DATCP must evaluate grant proposals and issue its grant awards within 90 days after receipt of a complete proposal. DATCP must clearly identify each award recipient, the amount of the award, and the purposes for which the award is given. DATCP must consider all of the following criteria when evaluating grant proposals and making grant awards:

•   The extent to which a proposed project will benefit the dairy industry.