SB590: Bill Text

Analysis by the Legislative Reference Bureau

Under current law, the Department of Natural Resources (DNR) administers the managed forest land (MFL) program and a similar program called the forest croplands program. The MFL program exempts an owner of land that is designated MFL from payment of municipal property taxes on the land in exchange for a lower payment per acre. In exchange, the owner must comply with certain forestry practices and must allow the public on the land under certain circumstances unless the landowner elects to pay an extra amount per acre to keep a limited number of acres closed. In addition, an owner of MFL must pay a withdrawal tax when the owner withdraws the land from the program before the order designating the land as MFL expires. Orders are for 25 or 50 years. This bill makes various changes to the MFL program, including the following:

1. The words "applicant" and "application" are substituted for "petitioner" and "petition" in the subchapter related to the MFL program. This change is nonsubstantive.

2. The dates before which DNR must act on applications under the MFL program are changed, and the deadline for owners to file applications to renew MFL orders is changed.

3. A forestry management plan for the MFL must accompany the application, and the requirement that DNR prepare the plan upon the request of the applying landowner is eliminated. Under the bill, DNR must prepare the plan only if DNR determines that the applicant is unable to have a proposed management plan prepared by a certified independent plan writer. DNR must promulgate rules establishing the criteria for when DNR will prepare the plan.

4. The Department of Revenue, upon the request of an MFL landowner, with the assistance of DNR, must prepare an estimate of the withdrawal tax that would be due if the MFL is withdrawn.

5. The requirement that the stumpage value used to determine the amount of yield taxes and withdrawal taxes under the MFL program be established by rule is eliminated.

6. The bill clarifies that when MFL is transferred to another owner, the person purchasing or otherwise receiving the land pays the transfer fee.

7. Under the forest croplands program, facsimile signatures are allowed and documents are exempted from register of deeds authentication requirements. These provisions exist for the MFL program under current law.

8. The penalties and procedures that apply to persons who file false reports also apply for assessing the yield tax to persons who fail to file cutting reports.

9. An owner selling MFL must disclose to prospective buyers that the land is designated as such under an MFL order.

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:

SB590, s. 1 Section 1. 20.370 (1) (cx) of the statutes is amended to read:

SB590,3,5 20.370 (1) (cx) Forestry — management plans. All moneys as calculated received under s. 77.82 (2m) (dm) 1. (ag) for payment for management plans prepared or completed by plan writers who are under contract with the department under s. 77.82 (3).

SB590, s. 2 Section 2. 26.09 (1b) (j) of the statutes is amended to read:

SB590,3,9 26.09 (1b) (j) "Stumpage value" means the applicable stumpage rate value established by rule under s. 77.91 (1) or the fair market value of raw forest products less the cost of their harvesting, whichever is greater.

SB590, s. 3 Section 3. 77.06 (5) of the statutes is amended to read:

SB590,4,7 77.06 (5) Tax levy on right to cut timber. The department of natural resources shall assess and levy against the owner a severance tax on the right to cut and remove wood products covered by reports under this section, at the rate of 10% of the value of the wood products based upon the stumpage value then in force established under s. 77.91 (1). Upon making the assessment, the department of natural resources shall mail a duplicate of the certificate by registered mail to the owner who made the report of cutting at the owner's last-known post-office address. The tax assessed is due and payable to the department of natural resources on the last day of the next calendar month after mailing following the date the certificate is mailed to the owner. The proceeds of the tax shall be paid into the forestry account of the conservation fund for distribution under s. 77.07 (3).

SB590, s. 4 Section 4. 77.125 of the statutes is created to read:

SB590,4,12 77.125 Signatures. (1) The signature of an official or an employee of the department of natural resources may be stamped, printed, or otherwise reproduced on an order under ss. 77.01 to 77.14 after the official or employee adopts the stamped, printed, or otherwise reproduced signature as his or her facsimile signature.

SB590,4,15 (2) The signature or the facsimile signature under sub. (1) of an official or an employee of the department of natural resources meets the requirement under s. 706.05 (2) (a).

SB590,4,17 (3) The requirement of s. 706.05 (2) (b) does not apply to orders issued under this subchapter.

SB590, s. 5 Section 5. 77.82 (title) of the statutes is amended to read:

SB590,4,19 77.82 (title) Managed forest land; petition application.

SB590, s. 6 Section 6. 77.82 (1) (bn) of the statutes is amended to read:

SB590,4,25 77.82 (1) (bn) For purposes of par. (b) 3., the department by rule shall define "human residence" to include a residence of the petitioner applicant regardless of whether it is the petitioner's applicant's primary residence. The definition may also include up to one acre surrounding the residence for a residence that is not the petitioner's applicant's primary residence.

SB590, s. 7 Section 7. 77.82 (1) (c) of the statutes is amended to read:

SB590,5,6 77.82 (1) (c) In addition to the requirements under pars. (a) and (b), for land subject to a petition an application under sub. (4m), all forest croplands owned by the petitioner applicant on the date on which the petition application is submitted filed that are located in the municipality or municipalities for which the petition application is submitted filed shall be included in the petition application.

SB590, s. 8 Section 8. 77.82 (2) (intro.) of the statutes is amended to read:

SB590,5,12 77.82 (2) Petition Application. (intro.) Any owner of land may petition file an application with the department to designate any eligible parcel of land as managed forest land. A petition An application may include any number of eligible parcels under the same ownership. Each petition application shall include all of the following:

SB590, s. 9 Section 9. 77.82 (2) (cm) of the statutes is amended to read:

SB590,5,16 77.82 (2) (cm) A copy of an instrument that has been recorded in the office of the register of deeds of each county in which the property is located that shows the ownership of the land subject to the petition application.

SB590, s. 10 Section 10. 77.82 (2) (dm) of the statutes is created to read:

SB590,5,18 77.82 (2) (dm) A proposed management plan.

SB590, s. 11 Section 11. 77.82 (2) (e) of the statutes is amended to read:

SB590,5,25 77.82 (2) (e) A statement of the owner's forest management objectives for the production of merchantable timber, in sufficient detail to provide direction for the development and approval of a management plan. The petition application may also state additional forest management objectives, which may include wildlife habitat management, aesthetic considerations, watershed management and recreational use.

SB590, s. 12 Section 12 . 77.82 (2) (e) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is amended to read:

SB590,6,8 77.82 (2) (e) A statement of the owner's forest management objectives for the production of merchantable timber, in sufficient detail to provide direction for the development and approval of a the proposed management plan. The application may also state additional forest management objectives, which may include wildlife habitat management, aesthetic considerations, watershed management and recreational use.

SB590, s. 13 Section 13. 77.82 (2) (f) of the statutes is amended to read:

SB590,6,11 77.82 (2) (f) Proof that each person holding any encumbrance on the land agrees to the petition that the application may be filed.

SB590, s. 14 Section 14. 77.82 (2) (i) of the statutes is amended to read:

SB590,6,15 77.82 (2) (i) If a proposed management plan is not submitted filed with the petition application, a request that the department prepare a management plan. The department may decline to prepare the plan.

SB590, s. 15 Section 15. 77.82 (2) (i) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is repealed.

SB590, s. 16 Section 16. 77.82 (2m) (title) of the statutes is amended to read:

SB590,6,19 77.82 (2m) (title) Fees for petitions applications and management plans.

SB590, s. 17 Section 17. 77.82 (2m) (a) 1. of the statutes is amended to read:

SB590,6,25 77.82 (2m) (a) 1. A petition An application under sub. (2), (4m), or (12) shall be accompanied by a nonrefundable application recording fee of $20 unless a different amount for the recording fee is established by the department by rule at an amount equal to the average expense to the department for recording an order issued under this subchapter.

SB590, s. 18 Section 18. 77.82 (2m) (a) 1. of the statutes, as affected by 2009 Wisconsin Act .... (this act), is renumbered 77.82 (2m) (a).

SB590, s. 19 Section 19. 77.82 (2m) (a) 2. of the statutes is amended to read:

SB590,7,7 77.82 (2m) (a) 2. If a petition an application under sub. (2), (4m), or (12) is not accompanied by a proposed management plan that meets the requirements under par. (c), the department shall charge the plan preparation fee established under par. (am) if the department agrees to complete the plan.

SB590, s. 20 Section 20. 77.82 (2m) (a) 2. of the statutes, as affected by 2009 Wisconsin Act .... (this act), is repealed.

SB590, s. 21 Section 21. 77.82 (2m) (ac) of the statutes is created to read:

SB590,7,13 77.82 (2m) (ac) If the department prepares a management plan under sub. (3) (am), the department shall collect from the applicant the management plan fee established under par. (am).

SB590, s. 22 Section 22. 77.82 (2m) (am) of the statutes is amended to read:

SB590,7,20 77.82 (2m) (am) The department shall by rule establish on an annual basis a nonrefundable fee that the department shall charge for a management plan prepared or completed by the department, including any plan prepared by a certified plan writer contracted by the department under sub. (3) (g). The fee shall be based on the comparable commercial market rate that is charged for preparation of such management plans.

SB590, s. 23 Section 23. 77.82 (2m) (c) of the statutes is amended to read:

SB590,7,24 77.82 (2m) (c) A proposed management plan is exempt from the management plan preparation fee under par. (a) 2. (ag) if it is prepared or completed by an independent certified plan writer instead of by the department.

SB590, s. 24 Section 24. 77.82 (2m) (d) of the statutes is amended to read:

SB590,8,2 77.82 (2m) (d) All of the application recording fees collected under par. (a) 1. shall be credited to the appropriation under s. 20.370 (1) (cr).

SB590, s. 25 Section 25. 77.82 (2m) (dm) 1. of the statutes is amended to read:

SB590,8,7 77.82 (2m) (dm) 1. Of each management plan fee, $300 or the entire fee, whichever is less, that is collected under par. (a) or (e) that is not credited to the appropriation under s. 20.370 (1) (cr) (ag) shall be credited to the appropriation under s. 20.370 (1) (cx).

SB590, s. 26 Section 26. 77.82 (2m) (e) of the statutes is amended to read:

SB590,8,14 77.82 (2m) (e) If a proposed management plan accompanying a petition an application filed under sub. (2), (4m), or (12) is not approved by the department under its initial review under sub. (3) (a), and if the department agrees to complete the management plan under sub. (3) (a), the department shall collect from the petitioner applicant the plan preparation fee established under par. (am), if the petitioner applicant has not previously paid the fee.

SB590, s. 27 Section 27. 77.82 (2m) (e) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is renumbered 77.82 (2m) (ag) and amended to read:

SB590,8,22 77.82 (2m) (ag) If a proposed management plan accompanying an application filed under sub. (2), (4m), or (12) is not approved by the department under its initial review under sub. (3) (a) (ar), and if the department agrees to complete the proposed management plan under sub. (3) (a) (ar), the department shall collect from the applicant the management plan preparation fee established under par. (am), if the applicant has not previously paid the fee.

SB590, s. 28 Section 28. 77.82 (3) (a) of the statutes is amended to read:

SB590,9,8 77.82 (3) (a) A proposed management plan may shall cover the entire acreage of each parcel subject to the petition application. The department, after considering the owner's forest management objectives as stated under sub. (2) (e), shall review and either approve or disapprove the proposed management plan. If the department disapproves the plan, it shall inform the petitioner applicant of the changes necessary to qualify the plan for approval upon subsequent review. At the request of the petitioner applicant, the department may agree to complete the proposed management plan that has been prepared by an independent certified plan writer. The department shall complete any proposed management plan prepared by the department.

SB590, s. 29 Section 29. 77.82 (3) (a) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is renumbered 77.82 (3) (ag) and amended to read:

SB590,9,13 77.82 (3) (ag) A proposed management plan shall cover the entire acreage of each parcel subject to the application. The and shall be prepared by an independent certified plan writer or by the department if par. (am) applies.

SB590,9,22 (ar) For a proposed management plan prepared by an independent certified plan writer, the department, after considering the owner's forest management objectives as stated under sub. (2) (e), shall review and either approve or disapprove the proposed management plan. If the department disapproves the proposed plan, it shall inform the applicant of the changes necessary to qualify the plan for approval upon subsequent review. At the request of the applicant, the department may agree to complete the proposed management plan that has been prepared by an independent certified plan writer. The department shall complete any proposed management plan prepared by the department.

SB590, s. 30 Section 30. 77.82 (3) (am) of the statutes is created to read:

SB590,9,25 77.82 (3) (am) If the department determines that an applicant is not able to have a proposed management plan prepared by a certified independent plan writer, the department shall prepare the plan. The department shall promulgate rules establishing the criteria that shall be met in order to determine that an applicant is unable to prepare such a plan.

SB590, s. 31 Section 31. 77.82 (3) (c) (intro.) of the statutes is amended to read:

SB590,10,7 77.82 (3) (c) (intro.) To qualify for approval, a management plan shall be prepared by an independent certified plan writer or prepared by the department and shall include all of the following:

SB590, s. 32 Section 32. 77.82 (3) (g) of the statutes is amended to read:

SB590,10,13 77.82 (3) (g) The department shall certify plan writers and shall promulgate rules specifying the qualifications that a person must satisfy to become a certified plan writer. For management plans prepared or completed by the department under this subsection, the department may contract with plan writers certified by the department to prepare and complete these plans.

SB590, s. 33 Section 33. 77.82 (4) of the statutes is amended to read:

SB590,11,2 77.82 (4) Additions to managed forest land. An owner of land that is designated as managed forest land under an order that takes effect on or after April 28, 2004, may petition file an application with the department to designate as managed forest land an additional parcel of land if the additional parcel is at least 3 acres in size and is contiguous to any of that designated land. The petition application shall be accompanied by a nonrefundable $20 application recording fee unless a different amount for the fee is established by the department by rule at an amount equal to the average expense to the department of recording an order issued under this subchapter. The fee shall be deposited in the conservation fund and credited to the appropriation under s. 20.370 (1) (cr). The petition application shall be filed on a department form and shall contain any additional information required by the department.

SB590, s. 34 Section 34. 77.82 (4g) (a) of the statutes is amended to read:

SB590,11,9 77.82 (4g) (a) If an owner of land that is designated as managed forest land under an order that takes effect before April 28, 2004, wishes to have an additional parcel of land that is at least 10 acres in size and that satisfies the other requirements in sub. (1) designated as managed forest land, the owner may petition file an application with the department under sub. (2) for a new order covering the additional land.

SB590, s. 35 Section 35. 77.82 (4g) (b) of the statutes is amended to read:

SB590,11,19 77.82 (4g) (b) If an owner of land that is designated as managed forest land under an order that takes effect before April 28, 2004, wishes to have designated as managed forest land an additional parcel of land that is at least 3 acres in size, that does not satisfy the requirements in sub. (1), and that is contiguous to any of that designated land, the owner may withdraw the designated land from the original order and may petition file an application with the department under sub. (2) for a new order covering both the withdrawn land and the additional land. The withdrawal tax and the withdrawal fee under s. 77.88 (5) and (5m) do not apply to a withdrawal under this paragraph.

SB590, s. 36 Section 36. 77.82 (4m) (a) of the statutes is amended to read:

SB590,11,23 77.82 (4m) (a) An owner of land that is entered as forest croplands under s. 77.02 may petition file an application with the department under sub. (2) to convert all or a portion of the land to managed forest land, subject to sub. (1) (c).

SB590, s. 37 Section 37. 77.82 (4m) (b) of the statutes is amended to read:

SB590,12,3 77.82 (4m) (b) A petition An application under this subsection shall specify whether the order designating the land as managed forest land will remain in effect for 25 years or 50 years, as elected by the owner.