SB445: Bill Text

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.

SB445, s. 7 Section 7. 36.25 (16) of the statutes is created to read:

SB445,8,4 36.25 (16) Sustainable agriculture research grants. The board shall administer a sustainable agriculture research grant program through the center for integrated agriculture systems to make grants for applied research and on-farm demonstration projects concerning managed grazing, organic agricultural production, other environmentally and socially responsible agricultural production, and related enterprises.

SB445, s. 8 Section 8. 92.03 (5m) of the statutes is created to read:

SB445,8,7 92.03 (5m) "Large animal feeding operation" has the meaning given in s. NR 243.04 (13), Wis. Adm. Code.

SB445, s. 9 Section 9. 92.05 (3) (k) of the statutes is amended to read:

SB445,8,17 92.05 (3) (k) Nutrient management rules. The department shall promulgate rules to improve agricultural nutrient management in this state. The rules shall be consistent with rules promulgated under s. 281.16 (3) and shall include incentives, educational and outreach provisions, and compliance requirements. In the rules promulgated under this paragraph, the department shall provide for a nutrient management certification program, shall require a person who prepares a nutrient management plan to be certified by the department, and shall authorize farmers who choose to prepare their own nutrient management plans to become certified. The department may impose fees for nutrient management planning certification.

SB445, s. 10 Section 10. 92.07 (2) of the statutes is renumbered 92.07 (2) (a) (intro.) and amended to read:

SB445,9,3 92.07 (2) (a) (intro.) Each land conservation committee may develop and adopt standards and specifications for management practices to control erosion, sedimentation, and nonpoint source water pollution. The standards and specifications for the following agricultural facilities and practices that are constructed or begun on or after October 14, 1997, and, if cost-sharing is available to the owner or operator under s. 92.14 or 281.65 or from any other source, for agricultural facilities and practices that are constructed or begun before that date shall be consistent with the performance standards, prohibitions, conservation practices, and technical standards under s. 281.16 (3).:

SB445,9,5 (b) The land conservation committee shall use the rules promulgated under s. 281.16 (3) (e) to determine whether cost-sharing is available under par. (a) 3.

SB445, s. 11 Section 11. 92.07 (2) (a) 1. to 3. of the statutes are created to read:

SB445,9,7 92.07 (2) (a) 1. Large animal feeding operations.

SB445,9,9 2. Agricultural facilities and practices that are constructed or begun on or after October 14, 1997.

SB445,9,12 3. Agricultural facilities and practices, other than large animal feeding operations, that are constructed or begun before October 14, 1997, if cost-sharing is available to the owner or operator under s. 92.14 or 281.65 or from any other source.

SB445, s. 12 Section 12. 92.105 (1) of the statutes is renumbered 92.105 (1) (a) (intro.) and amended to read:

SB445,9,21 92.105 (1) (a) (intro.) A land conservation committee shall establish soil and water conservation standards. The standards for the following agricultural facilities and practices that are constructed or begun on or after October 14, 1997, and, if cost-sharing is available to the farmer under s. 92.14 or 281.65 or from any other source, for agricultural facilities and practices that are constructed or begun before that date shall be consistent with the performance standards, prohibitions, conservation practices, and technical standards under s. 281.16 (3). It:

SB445,9,23 (b) A land conservation committee shall submit these the standards under par. (a) to the board for review.

SB445, s. 13 Section 13. 92.105 (1) (a) 1. to 3. of the statutes are created to read:

SB445,9,25 92.105 (1) (a) 1. Large animal feeding operations.

SB445,10,2 2. Agricultural facilities and practices that are constructed or begun on or after October 14, 1997.

SB445,10,5 3. Agricultural facilities and practices, other than large animal feeding operations, that are constructed or begun before October 14, 1997, if cost-sharing is available to the owner or operator under s. 92.14 or 281.65 or from any other source.

SB445, s. 14 Section 14. 92.14 (6) (gm) of the statutes is amended to read:

SB445,10,11 92.14 (6) (gm) A county may not provide cost-sharing funds using funds provided under this section in an amount that exceeds 70% of the cost of a project, except in cases of economic hardship, as defined by the department by rule. A county may not provide cost-sharing funds using funds provided under this section in an amount that exceeds $50,000 per project.

SB445, s. 15 Section 15. 92.15 (4) of the statutes is amended to read:

SB445,10,18 92.15 (4) A local governmental unit may not apply a regulation under sub. (2) or (3) to a livestock operation that exists on October 14, 1997, and that is not a large animal feeding operation unless the local governmental unit determines, using the rules promulgated under s. 281.16 (3) (e), that cost-sharing is available to the owner or operator of the livestock operation under s. 92.14 or 281.65 or from any other source.

SB445, s. 16 Section 16. 92.22 of the statutes is created to read:

SB445,10,24 92.22 Nutrient management grants. (1) The department shall establish and administer a program to provide grants to pay a portion of the costs of developing and implementing agricultural nutrient management plans required under s. 92.05 (3) (k) or ch. 283 or required by federal law. The department shall give priority to grants for agricultural operations that have never had a nutrient management plan.

SB445,10,25 (2) The department shall promulgate rules for the program under this section.

SB445, s. 17 Section 17. 93.07 (3m) of the statutes is created to read:

SB445,11,3 93.07 (3m) Buy Wisconsin program. To administer a market development program to do all of the following:

SB445,11,6 (a) Promote a Wisconsin identity for farm-raised food products through producer directories and other promotions for Wisconsin producers, producer organizations, and specialty food companies.

SB445,11,10 (b) Assist state agencies and school districts and other local governmental units to purchase products directly from Wisconsin producers, producer organizations, and specialty food companies in order to expand markets for farm products and improve the quality and freshness of food served.

SB445, s. 18 Section 18. 93.45 of the statutes is created to read:

SB445,11,15 93.45 Organic agricultural production. (1) Education and outreach. The department shall conduct education and outreach to promote the use of managed grazing, organic dairying, and other organic agricultural production practices as profitable and environmentally sound practices.

SB445,11,18 (2) Grants. The department shall make grants to pay a portion of the costs for farmers to adopt managed grazing, organic dairying, and other organic agricultural production practices.

SB445, s. 19 Section 19. 93.46 (3) of the statutes is created to read:

SB445,11,21 93.46 (3) The department shall annually report to the legislature under s. 13.172 (2) concerning the results of each grant made under this section.

SB445, s. 20 Section 20. 100.185 of the statutes is created to read:

SB445,11,24 100.185 Documentation of agricultural credit transactions. (1) Definitions. In this section:

SB445,12,3 (a) "Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing, or manufacture of farm products by a person that cultivates, plants, propagates, or nurtures those farm products.

SB445,12,5 (b) "Credit" means the right to defer payment of debt, to incur debt, and defer its payment or to purchase goods, services, or interests in land on a time price basis.

SB445,12,9 (c) "Credit transaction" means a transaction under which real or personal property, services or money is acquired by a person, on credit, and under which the person is required to pay a charge for the credit or is required to pay his or her obligation in installments.

SB445,12,11 (d) "Farm creditor" means a person that extends credit to another person that obtains the credit primarily for an agricultural purpose.

SB445,12,15 (e) "Farm product" means an agricultural, horticultural, viticultural, dairy, or forest product; livestock; wildlife; poultry; bees; fish; shellfish; a product raised or produced on a farm; and any processed or manufactured product that is derived from any of these items.

SB445,12,23 (2) Documentation required. A farm creditor shall ensure that each document that is signed by a person and that evidences the person's obligation to pay under a credit transaction that the person enters into primarily for an agricultural purpose is executed in duplicate original copies. Except as provided under sub. (3), the duplicate original copies shall consist of a signed copy and an identical carbon copy containing the carbon impression of all signatures on the signed copy. The farm creditor shall provide the person that receives the credit with one of the duplicate original copies.

SB445,13,3 (3) Rules. The department may, by rule, authorize the production of duplicate original copies as required under sub. (2) by any method that is at least as effective at preventing fraud as the method specified under sub. (2).

SB445, s. 21 Section 21. 234.92 of the statutes is renumbered 234.92 (1) and amended to read:

SB445,13,8 234.92 (1) The authority may establish premiums, fees , or other charges for providing financial assistance under programs guaranteed by the Wisconsin development reserve fund.

SB445, s. 22 Section 22. 234.92 (2) of the statutes is created to read:

SB445,13,11 234.92 (2) Notwithstanding sub. (1), the authority may not charge a farmer applying for a loan guarantee under the program under s. 234.90 an application fee.

SB445, s. 23 Section 23. 234.93 (2) (am) of the statutes is created to read:

SB445,13,18 234.93 (2) (am) Under every guarantee agreement entered into under par. (a), the lender shall agree to use loan servicing and forbearance policies to the fullest extent required or permitted under state and federal law before initiating proceedings to foreclose on any security interest obtained by the lender to secure repayment of a guaranteed loan. The authority may determine, and the agreement may specify, applicable loan servicing and forbearance policies.

SB445, s. 24 Section 24. 281.16 (3) (e) of the statutes is amended to read:

SB445,14,12 281.16 (3) (e) An owner or operator of an agricultural facility or practice that is in existence before October 14, 1997, and that is not a large animal feeding operation, as defined in s. NR 243.04 (13), Wis. Adm. Code, may not be required by this state or a municipality to comply with the performance standards, prohibitions, conservation practices, or technical standards under this subsection unless cost-sharing is available, under s. 92.14 or 281.65 or from any other source, to the owner or operator. For the purposes of this paragraph, sub. (4) and ss. 92.07 (2), 92.105 (1), 92.15 (4), and 823.08 (3) (c) 2., the department of natural resources shall promulgate rules that specify criteria for determining whether cost-sharing is available under s. 281.65, and the department of agriculture, trade and consumer protection shall promulgate rules that specify criteria for determining whether cost-sharing is available under s. 92.14 or from any other source. The rules may not allow a determination that cost-sharing is available to meet local regulations under s. 92.07 (2), 92.105 (1), or 92.15 that are consistent with or that exceed the performance standards, prohibitions, conservation practices, or technical standards under this subsection unless the cost-sharing is at least 70% of the cost of compliance or is from 70% to 90% of the cost of compliance in cases of economic hardship, as defined in the rules.

SB445, s. 25 Section 25. 281.16 (4) of the statutes is amended to read:

SB445,14,22 281.16 (4) Application to animal feeding operations. If the department issues a notice of discharge under ch. 283 for an animal feeding operation, the performance standards, prohibitions, conservation practices, and technical standards under sub. (3) apply to the animal feeding operation, except that if the animal feeding operation is in existence before October 14, 1997, and is not a large animal feeding operation, as defined in s. NR 243.04 (13), Wis. Adm. Code, the performance standards, prohibitions, conservation practices, and technical standards only apply if the department determines that cost-sharing is available to the owner or operator of the animal feeding operation under s. 92.14 or 281.65 or from any other source.

SB445, s. 26 Section 26. 281.17 (11) of the statutes is created to read:

SB445,15,7 281.17 (11) No person may begin to operate an animal waste storage facility with a capacity greater than 3,000,000 gallons before the person provides to the department proof of financial responsibility ensuring the availability of funds to cover the reasonably anticipated costs of remedial action that would be required as the result of the most harmful discharge of animal waste from the animal waste storage facility that could possibly occur. A person may establish proof of financial responsibility required under this subsection by obtaining any of the following made payable to or established for the benefit of the department and approved by the department: