* Beginning September 1, 1996, an amount equal to 35% of the dollar amount of the grain dealer's average monthly purchases from producers for the 3 months in which the grain dealer made the largest monthly purchases from producers during the preceding 12 months. (1995 Wis. Act 42 increased this percentage in stages, from 20% in the year ending August 31, 1996, to 35% in the year beginning September 1, 1996.)
○ It eliminated the former security cap of $500,000 for warehouse keepers and grain dealers.
○ It eliminated, as a form of security that may be filed with the Department, a security interest in grain inventory or accounts receivable.
Monthly Reports of Grain Purchases
Under current law, certain grain dealers who fail to meet minimum financial standards must file monthly reports with the Department showing amounts of grain purchased. 1995 Wis. Act 42 extended this monthly reporting requirement to class B grain dealers who use “deferred payment” or “deferred price” contracts (if they fail to meet minimum financial standards). The Department uses the monthly reports to monitor the adequacy of the security filed by grain dealers. This rule incorporates the statutory reporting requirements.
“Deferred Payment” and “Deferred Price” Contracts
“Deferred payment” and “deferred price” contracts, if not properly managed, can create serious financial risks. 1995 Wis. Act 42 made the following changes which are incorporated in this rule:
○ The amount of security required of grain dealers depends, in part, on their use of “deferred payment” or “deferred price” contracts.
○ A grain purchase contract must be in writing unless the grain dealer pays within 7 days. The new 7-day grace period recognizes operational realities in the grain business.
○ A grain dealer must make full and final payment under a “deferred payment” or “deferred price” contract by a specified payment date which is not more than 180 days after the contract price is determined.
Grain Dealer Disclosures to Producers
Under current rules, a grain dealer must disclose to grain producers the basis on which the grain dealer is licensed. As a result of the statutory changes made by 1995 Wis. Act 42, the current disclosures are no longer fully accurate. This rule simplifies and shortens the disclosures which grain dealers must make, and modifies the disclosures to make them consistent with current law.
Ownership of Grain
This rule clarifies that when a grain owner delivers grain to a person who is both a warehouse keeper and a grain dealer, the grain owner retains ownership rights until one of the following occurs:
○ The recipient acquires title to the grain pursuant to a sales contract that is documented by a purchase receipt or other writing.
○ The grain owner transfers title to a third person.
Fee Changes; General
Under the grain security program, the Department:
○ Licenses grain warehouse keepers and grain dealers.
○ Reviews annual financial statements for compliance with minimum financial standards.
○ Demands security from warehouse keepers and grain dealers who fail to meet minimum financial standards. The Department holds the security for the benefit of producers in the event that a grain warehouse keeper or grain dealer defaults in its obligations to producers.
○ Monitors security amounts for compliance with legal standards, based on the amount of a warehouse keeper's or grain dealer's financial obligations to producers.
○ Audits grain accounts and inspects grain inventories for compliance with legal requirements.
○ Investigates default claims, and determines the amount of actual defaults to producers. The Department may convert available security to pay allowed producer claims, or take other legal action to recover unpaid claims for producers.
○ Regulates the business practices of grain warehouse keepers and grain dealers to reduce financial risks to producers, and to prevent fraudulent or deceptive practices.
○ Enforces ch. 127, Stats., and ch. ATCP 99, Wis. Adm. Code.
The Department's grain security program is funded by a combination of license fees (PRO, or program revenue), general tax dollars (GPR, or general purpose revenue) and federal contracts (FED revenue). Under the 1995-97 biennial budget act, a total of 1.68 FTE (full-time equivalent) positions in the Department's grain security program were converted from GPR to PRO funding, effective July 1, 1997.
This rule increases license and inspection fees for grain warehouse keepers and grain dealers in order to fund the conversion of staff from GPR to PRO revenue, and in order to offset projected license revenue shortfalls resulting from consolidated ownership of grain warehouse and grain dealer operations. The rule also changes the fee structure to create a more equitable distribution of fees.
Current license fees generate an average of approximately $179,000 per year. The proposed fees will generate approximately $223,000 in 1996 and $270,000 in each subsequent year. License fees will fund approximately 59% of overall program costs, compared to 31% currently.
Warehouse Keepers; Fee Changes
This rule increases grain warehouse fees as follows:
○ The current basic license fee of $50 is increased to $75 effective September 1, 1996, and to $100 effective September 1, 1997.
○ The current license fee of $25 for each additional business location is increased to $50 effective September 1, 1996, and to $75 effective September 1, 1997.
○ The current inspection fee of $300 for warehouses with storage capacity of less than 150,000 bushels is increased to $375 effective September 1, 1996, and to $425 effective September 1, 1997.
○ The current inspection fee of $325 for warehouses with storage capacity of at least 150,000 bushels but less than 250,000 bushels is increased to $425 effective September 1, 1996, and to $475 effective September 1, 1997.
○ The current inspection fee of $375 for warehouses with storage capacity of at least 250,000 bushels but less than 500,000 bushels is increased to $475 effective September 1, 1996, and to $525 effective September 1, 1997.
○ The current inspection fee of $425 for warehouses with storage capacity of at least 500,000 bushels but less than 750,000 bushels is increased to $525 effective September 1, 1996, and to $575 effective September 1, 1997.
○ The current inspection fee of $475 for warehouses with storage capacity of at least 750,000 bushels but less than 1,000,000 bushels is increased to $575 effective September 1, 1996, and to $625 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of at least 1,000,000 bushels but less than 2,000,000 bushels is increased to $700 effective September 1, 1996, and to $725 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of at least 2,000,000 bushels but less than 3,000,000 bushels is increased to $800 effective September 1, 1996, and to $825 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of at least 3,000,000 bushels but less than 4,000,000 bushels is increased to $900 effective September 1, 1996, and to $925 effective September 1, 1997.
○ The current inspection fee of $525 for warehouses with storage capacity of 4,000,000 bushels or more is increased to $1,000 effective September 1, 1996, and to $1,025 effective September 1, 1997.
Grain Dealers; Fee Changes
This rule increases grain dealer fees as follows:
○ A class A grain dealer currently pays a basic license fee of $400, a fee of $10 for each additional truck (if more than one), and a surcharge of $250 if the grain dealer's annual financial statement is not audited. Effective September 1, 1996, this rule increases the basic license fee to $500, imposes a fee of $175 for each additional business location, increases the truck fee to $25 per additional truck, and increases the surcharge for an unaudited financial statement to $350. Effective September 1, 1997, this rule increases the basic license fee to $525, increases the fee for each additional business location to $225, increases the truck fee to $45 per additional truck, and increases the surcharge for an unaudited financial statement to $425.
○ A class B grain dealer currently pays a basic license fee of $175 and a fee of $10 for each additional truck (if more than one). Effective September 1, 1996, this rule increases the basic license fee to $200, increases the truck fee to $25 per additional truck, and imposes a surcharge of $350 if the grain dealer's annual financial statement is not audited. Effective September 1, 1997, this rule increases the basic license fee to $225, increases the truck fee to $45 per additional truck, and increases the surcharge for an unaudited financial statement to $425.
○ A class B2 grain dealer currently pays a basic license fee of $50 and a fee of $10 for each additional truck (if more than one). Effective September 1, 1996, this rule increases the truck fee to $25 per additional truck. Effective September 1, 1997, this rule increases the basic license fee to $75, and increases the truck fee to $45 per additional truck.
○ A class C grain dealer is not required to be licensed, but may voluntarily apply for a license. A class C grain dealer who voluntarily applies for a license must currently pay a basic license fee of $50. Effective September 1, 1996, this rule increases the basic license fee to $75.
○ Under current law, a grain dealer must pay a license fee surcharge of $500 if the grain dealer is caught operating without a required license, except that 1995 Wis. Act 42 provides for a lesser surcharge of $250 for class B2 grain dealers. This rule incorporates the lesser surcharge for class B2 grain dealers.
Rule Organization and Drafting
This rule makes a number of drafting changes to improve the organization and clarity of the current rules, and to make the current rules more consistent with the statutory language enacted under 1995 Wis. Act 42.
Fiscal Estimate
The proposed amendments to the rule interpret the changes in ch. 127, Stats., adopted under 1995 Wis. Act 42. Chapter 127, Stats., requires grain warehouse keepers and grain dealers to be licensed with the Department of Agriculture, Trade and Consumer Protection (DATCP). Under the statute, warehouse keepers and Class A dealers are required to file financial statements with DATCP and, if they do not maintain certain minimum financial standards, to file security with DATCP. Warehouse keepers and dealers are required by the statute to follow certain trade practices, use various forms and maintain certain records.
The conversion of 1.68 Full Time Equivalent (FTE) from General Purpose Revenue (GPR) to Program Revenue (PR) effective July of 1997 was approved by the Legislature in the last budget session. This conversion has necessitated an increase in fees to produce revenue sufficient to cover anticipated expenditures. Warehouse keeper fees have not been increased since September of 1985 and grain dealer fees were last increased in September of 1991. This conversion to program revenue funding is consistent with Department and Board policy under Document 175, Review and Approval of Department Fees, Section II (B) Policy.
The conversion of 1.68 FTE position will increase salaries and fringe benefits cost in the program revenue area, but the requested increase in fees should generate sufficient revenues to cover these expenditures through June of 1999. The rule generates additional fee revenues of $79,000 per year.
DATCP currently maintains a program of record examinations of warehouse keepers and dealers. Enforcement of the proposed amendment to the rule will be added to the examination procedures at a minimal cost that can be absorbed. Printing, mailing, forms redesign and hearing costs that will be incurred in conjunction with the adoption of the proposed rules will approximate $500 and will be absorbed.
Initial Regulatory Flexibility Analysis
The proposed amendments to the rule interpret ch. 127, Stats., which requires grain warehouse keepers and grain dealers, with certain exceptions, to be licensed with the Department of Agriculture, Trade and Consumer Protection (Department). The statute requires licensed grain warehouse keepers and certain grain dealers (Class A and Class B who use deferred payment) to file annual financial statements with the Department showing that they meet specified minimum financial standards or, if they do not meet those standards, to file security with the Department. The statute also requires warehouse keepers and grain dealers to employ various trade practices, to give producers and depositors various written documents and to retain certain records.
The proposed amendments to the rule regulate 116 warehouse keepers, 150 Class A dealers, 108 Class B dealers, 38 Class B2 dealers and 95 Class C dealers and a number of exempt warehouse keepers and dealers, for the benefit of over 45,000 producers in Wisconsin who grow grain for the cash market. Many of the warehouse keepers, grain dealers, and virtually all of the producers, are small businesses as defined by s. 227.114 (1) (a), Stats.
The proposed amendments to ch. ATCP 99 are insignificant in relation to the specific requirements for documentation and records required under the current statute. The increase in revenue (fees) imposed by the amendments to the rule, beyond those included in the statutory requirements, is related to the conversion of 1.68 FTE positions from general purpose revenue to program revenue. The conversion of 1.68 Full Time Equivalent (FTE) from General Purpose Revenue (GPR) to Program Revenue (PR) effective July of 1997 was approved by the Legislature in the last budget session and is consistent with Department and Board policy.
The proposed amendments to the rule do not require warehouse keepers or grain dealers to acquire any knowledge beyond that currently necessary to engage in their business. The Department has given the Department of Development notice of their rule, as required by s. 227.114 (5), Stats.
State Elections Board
Notice is hereby given that pursuant to ss. 5.05 (1) (f) and 227.11 (2) (a), Stats., and interpreting ss. 11.01 (16), 11.06 (12), and 11.30 (2), (4) and (5), Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the State of Wisconsin Elections Board will adopt the following rule as proposed in this notice without public hearing unless, within 30 days after publication of this notice on March 1, 1996, the Elections Board is petitioned for a public hearing by 25 persons who will be affected by the rule; by a municipality which will be affected by the rule; or by an association which is representative of a farm, labor, business, or professional group which will be affected by the rule.
Analysis
Statutory authority: ss. 5.05 (1) (f) and 227.11 (2) (a)
Statutes interpreted: ss. 11.01 (16), 11.06 (12), and 11.30 (2), (4) & (5)
This rule interprets ss. 11.01 (16), 11.06 (12), and 11.30 (2), (4) & (5), Stats. The rule provides that the source of any communication, including a telephone call, that has been paid for or with money raised for political purposes - except a bona fide poll or survey which does not expressly advocate the election or defeat of a clearly identified candidate or a vote at a referendum - must be identified during the course of, or at the end of, the communication.
Pursuant to the authority vested in the State of Wisconsin Elections Board by ss. 5.05 (1) (f) and 227.11 (2) (a), Stats., the Elections Board hereby creates s. El Bd 1.655 interpreting ss. 11.01 (16), 11.06 (12), and 11.30 (2), (4) & (5), Stats., as follows:
Text of Rule
SECTION 1. El Bd 1.655 is created to read:
El Bd 1.655 Identification of the source of communications paid for with money raised for political purposes. (1) Except for communications for which reporting is not required under s. 11.06 (2), Stats., and pursuant to s. 11.30 (2) (a), Stats., any communication paid for with money that has been raised for political purposes must contain a source identification. Communication includes printed advertisement, billboard, handbill, sample ballot, television or radio advertisement, telephone call, and any other form of communication that may be utilized by a registrant for the purpose of influencing the election or nomination of any individual to state or local office or for the purpose of influencing a particular vote at a referendum. Incidental administrative communications need not identify their source if such communications are singular in nature and are in no way intended to communicate a political message.
(2) The source identification requirements of s. 11.30, Stats., do not apply to communications paid for by an individual who, or a committee which, is not subject to the registration requirements of s. 11.05, Stats.
(3) When making communications requiring source identification, disclosure is not required to be made at any particular time during the communication. In the case of telephone calls, the required disclosure may be made at any time prior to the end of the call.
(4) Notwithstanding the source identification requirements under s. 11.30 (2) (a), Stats., a bona fide poll or survey under s. 11.30 (5), Stats., concerning the support or opposition to a candidate, political party, referendum or issues, may be conducted without source identification unless the person being polled requests such information. If requested, the person conducting the poll shall disclose the name and address of the person making payment for the poll and, in the case of a registrant under s. 11.05, the name of the treasurer or the person making the payment. For purposes of this rule, the term ”bona fide poll” means a poll which is conducted for the purpose of identifying, and/or collecting data on, voter attitudes and preferences and not for the purpose of conveying a message of express advocacy.
(5) A registrant who conducts a bona fide poll must report the expense of conducting the poll on its campaign finance reports, notwithstanding that the registrant is not required to identify the source of that poll under s. 11.30 (5), Stats., and this rule.
Initial Regulatory Flexibility Analysis
The creation of this rule does not affect business.
Fiscal Estimate
The creation of this rule has no fiscal effect.
Health & Social Services
(Health, Chs. HSS 110--)
Notice is hereby given that pursuant to s.50.36(1), Stats., the Department of Health and Social Services will hold a public hearing to consider the proposed repeal of s. 124.20(5)(a)3. and the repeal and recreation of s. HSS 124.20(5)(i)8., relating to the administration of labor-inducing agents in hospitals.
Hearing Information
March 15, 1996 Room 137
Friday State Office Building
Beginning at 1:00 p.m. 1 W. Wilson Street
MADISON, WI
