AB75: Bill Text

AB75,1136,25 93.20 (2) Enforcement costs order. If a court imposes costs under s. 814.04 or 973.06 against a defendant in an action, the court may order that defendant to pay to reimburse the department any of the for reasonable, documented enforcement costs specified under sub. (3) that incurred by the department has incurred to prepare and prosecute that action. The prosecutor shall present evidence of the enforcement costs and the defendant shall be given an opportunity to refute that evidence. If any cost that a court orders a defendant to pay under this section may also be recovered by the department under s. 814.04 or 973.06, the department may recover that cost only under this section, but that cost is not limited to the amounts specified in s. 814.04 or 973.06.

AB75, s. 1972 Section 1972. 93.20 (3) of the statutes is repealed.

AB75, s. 1973 Section 1973. 93.20 (4) of the statutes is repealed.

AB75, s. 1974 Section 1974. 93.53 of the statutes is created to read:

AB75,1137,5 93.53 Beginning farmer and farm asset owner tax credit eligibility. (1) Definitions. In this section:

AB75,1137,7 (a) "Agricultural asset" means machinery, equipment, facilities, or livestock that is used in farming.

AB75,1137,9 (b) "Beginning farmer" means an individual who meets the conditions specified in sub. (2).

AB75,1137,12 (c) "Educational institution" means the Wisconsin Technical College System, the University of Wisconsin-Extension, the University of Wisconsin-Madison, or any other institution that is approved by the department under sub. (6) (a).

AB75,1137,14 (d) "Established farmer" means a person who meets the conditions specified in sub. (3).

AB75,1137,16 (e) "Farming" has the meaning given in section 464 (e) (1) of the Internal Revenue Code.

AB75,1137,18 (f) "Financial management program" means a course in farm financial management that is offered by an educational institution.

AB75,1137,21 (2) Beginning farmer. An individual is a beginning farmer for the purposes of s. 71.07 (8r), 71.28 (8r), or 71.47 (8r) if, at the time that the individual submits an application under sub. (4), all of the following apply:

AB75,1137,22 (a) The individual has a net worth of less than $200,000.

AB75,1137,24 (b) The individual has farmed for fewer than 10 years out of the preceding 15 years.

AB75,1138,3 (c) The individual has entered into a lease for a term of at least 3 years with an established farmer for the use of the established farmer's agricultural assets by the beginning farmer.

AB75,1138,4 (d) The individual uses the leased agricultural assets for farming.

AB75,1138,7 (3) Established farmer. A person is an established farmer for the purposes of s. 71.07 (8r), 71.28 (8r), or 71.47 (8r) if, at the time that the person submits an application under sub. (4), all of the following apply:

AB75,1138,8 (a) The person has engaged in farming for a total of at least 10 years.

AB75,1138,9 (b) The person owns agricultural assets.

AB75,1138,12 (c) The person has entered into a lease for a term of at least 3 years with a beginning farmer for the use of the person's agricultural assets by the beginning farmer.

AB75,1138,16 (4) Applications. (a) In order for an experienced farmer to claim the farm asset owner tax credit under s. 71.07 (8r) (b) 2., 71.28 (8r), or 71.47 (8r), the experienced farmer and the beginning farmer who is leasing agricultural assets from the experienced farmer shall each submit an application to the department.

AB75,1138,21 (b) An established farmer shall include in the application under this subsection the established farmer's name and address, information showing that the established farmer satisfies the conditions in specified in sub. (3), a description of the leased agricultural assets and their location, a copy of the lease, and any other information required by the department.

AB75,1138,23 (c) A beginning farmer shall include all of the following in an application under this subsection:

AB75,1138,24 1. The beginning farmer's name and address.

AB75,1139,2 2. Information showing that the beginning farmer satisfies the conditions in sub. (2).

AB75,1139,6 3. A business plan that includes a current balance sheet and projected balance sheets for 3 years, cash flow statements, and income statements along with a detailed description of all significant accounting assumptions used in developing the financial projections.

AB75,1139,9 4. A description of the beginning farmer's education, training, and experience in the type of farming in which the beginning farmer uses the leased agricultural assets.

AB75,1139,11 5. A copy of the beginning farmer's completed federal profit or loss from farming form, schedule F, or other documentation approved by the department under sub. (6).

AB75,1139,12 6. Any other information required by the department.

AB75,1139,18 (d) If a beginning farmer wishes to claim the beginning farmer educational credit under s. 71.07 (8r) (b) 1., the beginning farmer shall also include in the application under this subsection a description of the financial management program completed by the beginning farmer and a statement of the amount that the beginning farmer paid the educational institution to enroll in the financial management program.

AB75,1139,20 (5) Evaluation and certification. (a) The department shall review applications submitted under sub. (4) (a).

AB75,1139,23 (b) The department shall provide an established farmer with a certificate of eligibility for the farm asset owner tax credit under s. 71.07 (8r) (b) 2., 71.28 (8r), or 71.47 (8r) if all of the following apply:

AB75,1139,24 1. The established farmer's application complies with sub. (4) (b).

AB75,1139,25 2. The beginning farmer's application complies with sub. (4) (c).

AB75,1140,5 3. The department determines that the business plan submitted under sub. (4) (c) 3. and the education, training, or experience described under sub. (4) (c) 4. show that the beginning farmer has sufficient resources and education, training, or experience for the type of farming in which the beginning farmer uses the leased agricultural assets.

AB75,1140,11 (c) The department shall provide a beginning farmer with a certificate of eligibility for the beginning farmer educational credit under s. 71.07 (8r) (b) 1. if the department has issued a certificate of eligibility under par. (b) for the experienced farmer from whom the beginning farmer leases farm assets and the information provided under sub. (4) (d) shows that the beginning farmer has completed a financial management program.

AB75,1140,14 (6) Department authority. (a) The department may approve providers of courses in farm financial management for the purposes of the beginning farmer educational credit under s. 71.07 (8r) (b) 1.

AB75,1140,16 (b) The department may approve alternative documentation for the purposes of sub. (4) (c) 5.

AB75,1140,20 (c) The department may assist beginning farmers to develop business plans for the purposes of sub. (4) (c) 3. and may assist in the negotiation of leases of farm assets that may enable persons to qualify for tax credits under s. 71.07 (8r), 71.28 (8r), or 71.47 (8r).

AB75, s. 1975 Section 1975. 93.55 of the statutes is repealed.

AB75, s. 1976 Section 1976. 93.57 of the statutes is repealed.

AB75, s. 1977 Section 1977. 93.73 of the statutes is created to read:

AB75,1140,24 93.73 Purchase of agricultural conservation easements.

AB75,1140,25 (1) Legislative findings. The legislature finds all of the following:

AB75,1141,3 (a) That the preservation of farmland is important for current and future agricultural production in this state, including the production of food and other products needed to sustain the life, health, and welfare of the people of this state.

AB75,1141,5 (b) That the preservation of farmland is important for the current and future state economy and for the current and future environment of this state.

AB75,1141,7 (c) That purchases of agricultural conservation easements, as provided in this section, serve important public purposes of statewide significance.

AB75,1141,8 (1m) Definitions. In this section:

AB75,1141,11 (a) "Agricultural conservation easement" means a conservation easement, as defined in s. 700.40 (1) (a), the purpose of which is to assure the availability of land for agricultural use.

AB75,1141,12 (b) "Agricultural use" means any of the following:

AB75,1141,14 1. Any of the following activities conducted for the purpose of producing an income or livelihood:

AB75,1141,15 a. Crop or forage production.

AB75,1141,16 b. Keeping livestock.

AB75,1141,17 c. Beekeeping.

AB75,1141,18 d. Nursery, sod, or Christmas tree production.

AB75,1141,19 e. Floriculture.

AB75,1141,20 f. Aquaculture.

AB75,1141,21 g. Fur farming.

AB75,1141,22 h. Forest management.

AB75,1141,24 i. Enrollment of land in a federal agricultural commodity payment program or a federal or state agricultural land conservation payment program.

AB75,1141,25 2. Any other use that the department, by rule, identifies as an agricultural use.

AB75,1142,2 (c) "Cooperating entity" means a political subdivision or nonprofit conservation organization.

AB75,1142,4 (d) "Fair market value" means value as determined by a professional appraisal that is approved by the department.

AB75,1142,7 (dm) "Livestock" means bovine animals, equine animals, goats, poultry, sheep, swine, farm-raised deer, farm-raised game birds, camelids, ratites, and farm-raised fish.

AB75,1142,13 (e) "Nonprofit conservation organization" means a nonstock corporation, charitable trust, or other entity whose purposes include the acquisition of property for conservation or agricultural preservation purposes, that is described in section 501 (c) (3) of the Internal Revenue Code, that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code, and that is a qualified organization under section 170 (h) (3) of the Internal Revenue Code.

AB75,1142,14 (f) "Political subdivision" means a city, village, town, or county.

AB75,1142,16 (g) "Professional appraisal" means an appraisal conducted by a certified general appraiser, as defined in s. 458.01 (8).

AB75,1142,18 (h) "Purchase cost" means the amount paid to a landowner to acquire an agricultural conservation easement from the landowner.

AB75,1142,25 (i) "Transaction costs" means out-of-pocket expenses incurred in connection with the acquisition, processing, recording, and documentation of an agricultural conservation easement, including out-of-pocket expenses for land surveys, land descriptions, real estate appraisals, title verification, preparation of legal documents, reconciliation of conflicting property interests, documentation of existing land uses, and closing. "Transaction costs" does not include costs incurred by a cooperating entity for staffing, overhead, or operations.

AB75,1143,5 (2) Program. (a) The department shall administer a program under which it, together with cooperating entities, purchases agricultural conservation easements from willing landowners. The department may pay as its share of the cost to purchase an agricultural conservation easement under this section an amount that does not exceed the sum of the following:

AB75,1143,7 1. Fifty percent of the fair market value of the agricultural conservation easement.

AB75,1143,9 2. The reasonable transaction costs related to the purchase of the agricultural conservation easement.

AB75,1143,13 (am) The willingness of a landowner to convey an agricultural conservation easement for less than full market value does not reduce the amount that the department may pay as its share of the cost to purchase the agricultural conservation easement.

AB75,1143,19 (b) The department, after consultation with the council under sub. (13), shall solicit applications under sub. (3) at least annually. The department shall issue each solicitation in writing and shall publish a notice announcing the solicitation. In soliciting applications, the department may specify the total amount of funds available, application deadlines, application requirements and procedures, preliminary criteria for evaluating applications, and other relevant information.

AB75,1143,23 (3) Application. A cooperating entity may apply to participate in the program under this section by submitting an application that complies with requirements contained in the department's solicitation under sub. (2) (b) and that contains all of the following:

AB75,1144,3 (a) Identifying information for the cooperating entity, including information showing that the cooperating entity is a political subdivision or nonprofit conservation organization.

AB75,1144,5 (b) A description of the land that would be subject to the proposed agricultural conservation easement, including location, acreage, and current use.

AB75,1144,7 (c) The name and address of each owner of land that would be subject to the proposed agricultural conservation easement.

AB75,1144,9 (d) Evidence that all of the owners under par. (c) are willing to convey the proposed agricultural conservation easement.

AB75,1144,13 (e) An indication that the cooperating entity is willing to arrange the purchase of the proposed agricultural conservation easement in accordance with this section and share in the purchase cost, subject to reimbursement under sub. (9) of the department's agreed upon share of the costs.

AB75,1144,15 (f) The purpose of and rationale for the proposed agricultural conservation easement.

AB75,1144,17 (g) Information needed to evaluate the application using the criteria in sub. (4) and in the department's solicitation under sub. (2) (b).

AB75,1144,21 (4) Application evaluation criteria. The department may not approve an application under sub. (3) unless the department determines that purchase of the proposed agricultural conservation easement will serve a public purpose. In making this determination, the department shall consider all of the following criteria:

AB75,1144,23 (a) The value of the proposed agricultural conservation easement in preserving or enhancing agricultural production capacity in this state.

AB75,1145,3 (b) The importance of the proposed agricultural conservation easement in protecting or enhancing the waters of the state or in protecting or enhancing other public assets.

AB75,1145,6 (c) The extent to which the proposed agricultural conservation easement would conserve important or unique agricultural resources, such as prime soils and soil resources that are of statewide importance or are unique.

AB75,1145,9 (d) The extent to which the proposed agricultural conservation easement would be consistent with local land use plans and zoning ordinances, including any certified farmland preservation plans and zoning ordinances under ch. 91.

AB75,1145,11 (e) The extent to which the proposed agricultural conservation easement would enhance an agricultural enterprise area designated under s. 91.84.