LRB-4560/1
RCT/RJM/PJK:all:kjf
2001 - 2002 LEGISLATURE
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
1An Act to repeal 421.202 (10) and 422.210;
to renumber and amend 92.07 (2),
292.105 (1), 234.92, 283.91 (3) and 424.208 (1);
to amend 92.05 (3) (k), 92.14 (6)
3(gm), 92.15 (4), 281.16 (3) (e), 281.16 (4), 283.55 (2) (title), 283.91 (2), 421.301
4(17), 422.203 (4) (c), 422.207 (1), 422.209 (2) (b) 1., 422.209 (2) (b) 2., 422.411 (1),
5422.412, 422.413 (1), 422.417 (1) (c), 422.417 (1) (d), 422.417 (2), 422.418 (2),
6422.501 (3), 423.201 (1) (intro.), 425.103 (2) (a), 425.206 (1) (b), 425.206 (1) (c),
7425.207 (2), 425.208 (1) (intro.), 425.208 (1) (cm), 427.102, 427.103 (1), 427.104
8(1) (intro.) and 560.17 (5c) (a) (intro.); and
to create 20.115 (4) (cm), 20.115 (7)
9(cm), 20.115 (7) (he), 20.285 (1) (eb), 20.370 (4) (ai), 36.25 (16), 92.03 (5m), 92.07
10(2) (a) 1. to 3., 92.105 (1) (a) 1. to 3., 92.22, 93.07 (3m), 93.45, 93.46 (3), 100.185,
11234.92 (2), 234.93 (2) (am), 281.17 (11), 281.18, 283.01 (6s), 283.31 (1m), 283.31
12(9), 283.38, 283.43 (1) (am), 283.43 (1m), 283.55 (1s), 283.55 (2) (am), 283.60,
13283.91 (3) (b), 422.201 (12), 422.413 (2), 422.417 (1) (e), 424.208 (1) (b), 424.301
14(1) (b) 4., 425.114, 425.206 (1) (d), 560.17 (5c) (am) and 560.17 (5g) of the
1statutes;
relating to: regulation of large animal feeding operations,
2agricultural nutrient management planning, water pollution discharge
3permits for certain livestock operations, construction and operation of certain
4animal waste storage facilities, controlling emissions of ammonia and
5hydrogen sulfide; including agricultural consumer transactions within the
6general scope of the Wisconsin Consumer Act; documentation of agricultural
7credit transactions; grants relating to agriculture and rural economic
8development; marketing agricultural products, rural economic development
9loans, sustainable agriculture research, dairy profitability, assistance for
10beginning farmers; a study of the dairy and livestock industries; prohibiting an
11application fee for applying to the agricultural production loan guarantee
12program and requiring lenders making loans that are guaranteed by the
13Wisconsin Housing and Economic Development Authority to employ certain
14policies before foreclosing on security interests obtained in connection with the
15loans 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. 2
1Section
2. 20.115 (4) (cm) of the statutes is created to read:
SB445,7,32
20.115
(4) (cm)
Organic agricultural production. The amounts in the schedule
3for organic agricultural production education, outreach, and grants under s. 93.45.
SB445, s. 3
4Section
3. 20.115 (7) (cm) of the statutes is created to read:
SB445,7,65
20.115
(7) (cm)
Nutrient management grants. The amounts in the schedule for
6nutrient management grants under s. 92.22.
SB445, s. 4
7Section
4. 20.115 (7) (he) of the statutes is created to read:
SB445,7,98
20.115
(7) (he)
Agricultural nutrient management. All moneys received under
9s. 92.05 (3) (k), for activities related to agricultural nutrient management.
SB445, s. 5
10Section
5. 20.285 (1) (eb) of the statutes is created to read:
SB445,7,1211
20.285
(1) (eb)
Sustainable agriculture research grants. The amounts in the
12schedule for sustainable agriculture research grants under s. 36.25 (16).
SB445, s. 6
13Section
6. 20.370 (4) (ai) of the statutes is created to read:
SB445,7,1614
20.370
(4) (ai)
Water resources — animal feeding operations. From the general
15fund, all moneys received under s. 283.38 for permitting and monitoring compliance
16of concentrated animal feeding operations.
SB445, s. 7
17Section
7. 36.25 (16) of the statutes is created to read: