Wisconsin
Administrative
Register
No. 529
Publication Date: January 14, 2000
Effective Date: January 15, 2000
Revisor of Statutes Bureau
Suite 800, 131 West Wilson Street
Madison, Wisconsin 53703-3233
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T a b l e o f C o n t e n t s
Emergency Rules Now In Effect.
Pages 3 to 10.
Agriculture, Trade and Consumer Protection:
Rules relating to security of dairy plant payments to milk producers.
Commerce:
PECFA Interagency Responsibilities, Ch. Comm 46
Rules relating to Petroleum Environmental Cleanup Fund interagency responsibilities.
Commerce:
Resources for Communities, etc., Chs. Comm 105-128
Rules relating to certified capital companies.
Crime Victims Rights Board:
Rules relating to review of allegations of crime victims rights violations.
Employe Trust Funds:
Rules adopted revising s. ETF 20.25 (1), relating to the distribution to annuitants under 1999 Wis. Act 11. [FIRST APPEARANCE].
Financial Institutions--Securities:
Rules adopted revising s. DFI-Sec 5.01, relating to investment advisor competency examination grandfathering provisions. [FIRST APPEARANCE].
Gaming Division:
Rules adopted creating ch. Game 27, relating to the conduct of pari-mutuel snowmobile racing. [FIRST APPEARANCE].
Health & Family Services:
Management, etc., Chs. HFS 1--
Rule relating to caregiver background checks.
Health & Family Services:
Community Services, Chs. HFS 30-
Rules relating to the adoption assistance program.
Health & Family Services:
Medical Assistance, Chs. HFS 100-108
Rules relating to operation of the BadgerCare health insurance program.
Rules adopted revising chs. HFS 106 and 108, relating to discovery rights in contested case proceedings. [FIRST APPEARANCE]
Health & Family Services:
Health, Chs. HFS 110-
Rules relating to the Health Insurance Risk-Sharing Plan (HIRSP).
Higher Educational Aids Board:
Rules relating to the Minority Teacher Loan Program.
Natural Resources:
Environmental Protection-Water Regulation,
Chs. NR 300-
Rules relating to determination of navigability in farm ditches.
Natural Resources:
Environmental Protection-Investigation & Remediation, Chs. NR 700--
Rules relating to sites contaminated with petroleum products from petroleum storage tanks.
Revenue:
Rules relating to assessment of agricultural property.
Transportation:
Rules relating to evaluating bids solicited for transit service in a competitive process.
Workforce Development:
Prevailing Wage Rates, Chs. DWD 290-294
Rule adopted amending s. DWD 290.155, relating to the annual adjustment of the prevailing wage rate for public works projects. [FIRST APPEARANCE]
Scope Statements.
Page 11.
Revenue:
S. Tax 2.32 - Relating to the definition of gross receipts for recycling surcharge purposes.
Revenue:
SS. Tax 18.05 and 18.08 - Relating to the assessment of agricultural land for property tax purposes.
Workforce Development (Prevailing Wage Rates, Chs. DWD 290-294):
S. DWD 290.155 - Relating to annual adjustment of thresholds for application of the prevailing wage rates for state or local public works projects.
Notices of Submittal of Proposed Rules to Wisconsin Legislative Council Rules Clearinghouse.
Page 12.
Agriculture, Trade and Consumer Protection:
Chs. ATCP 10 to 12 - Relating to animal health.
Employment Relations--Merit Recruitment and Selection:
ER-MRS Code - Relating to providing examination materials to hiring managers for use in interviews, and to removing individuals who do not appear for interviews from lists of candidates.
Insurance, Commissioner of:
S. Ins 6.57 (4) - Relating to lowering the listing fees for resident insurance agents.
Public Instruction:
Ch. PI 44 - Relating to alternative education grants.
Notices of Hearings or of Proposed Rules.
Page 13.
Insurance, Commissioner of:
Hearing to consider s. Ins 6.57 (4), relating to lowering the listing fees for resident insurance agents. [Hearing date: 02/08/00]
Notice of Submission of Proposed Rules to the Presiding Officer of Each House of the Legislature, Under S. 227.19, Stats.
Page 14.
Agriculture, Trade and Consumer Protection:
(CR 99-133) - Ch. ATCP 105
Chiropractic Examining Board:
(CR 99-148) - S. Chir 4.07
Commerce:
(CR 99-86) - Chs. Comm 5,82 and 84
Commerce:
(CR 99-122) - Ch. Comm 90
Commerce:
(CR 99-139) - Ch. Comm 32
Elections Board:
(CR 99-150) - S. ElBd 1.28
Physical Therapists Affiliated Credentialing Board:
(CR 99-66) - Chs. PT 1 to 5
Public Service Commission:
(CR 98-174) - Ch. PSC 100
Public Service Commission:
(CR 99-131) - Ch. PSC 111
Revenue:
(CR 99-134) - S. Tax 11.96
Transportation:
(CR 99-144) - Ch. Trans 316
Administrative Rules Filed with the Revisor of Statutes Bureau.
Page 15.
Chiropractic Examining Board:
(CR 99-40) - S. Chir 3.08
Employment Relations Commission:
(CR 99-104) - Ch. ERC 33
Health and Family Services:
(CR 95-140) - Ch. HFS 52
Health and Family Services:
(CR 99-113) - SS. HFS 119.07 and 119.15
Transportation:
(CR 99-136) - SS. Trans 252.02 and 252.05
E m e r g e n c y R u l e s N o w I n E f f e c t
Under s. 227.24, Stats., state agencies may promulgate rules without complying with the usual rule-making procedures. Using this special procedure to issue emergency rules, an agency must find that either the preservation of the public peace, health, safety or welfare necessitates its action in bypassing normal rule-making procedures.
Emergency rules are published in the official state newspaper, which is currently the Wisconsin State Journal. Emergency rules are in effect for 150 days and can be extended up to an additional 120 days with no single extension to exceed 60 days.
Extension of the effective period of an emergency rule is granted at the discretion of the Joint Committee for Review of Administrative Rules under s. 227.24 (2), Stats.
Notice of all emergency rules which are in effect must be printed in the Wisconsin Administrative Register. This notice will contain a brief description of the emergency rule, the agency finding of emergency, date of publication, the effective and expiration dates, any extension of the effective period of the emergency rule and information regarding public hearings on the emergency rule.
EMERGENCY RULES NOW IN EFFECT
Agriculture, Trade & Consumer Protection
Rules adopted revising s. ATCP 100.45, relating to security of dairy plant payments to milk producers.
Finding of Emergency
(1) Section 100.06, Stats., is designed to provide “reasonable assurance” that dairy farmers will be paid for the milk they produce. Under ss. 97.20(2)(d)2. and l00.06, Stats., a dairy plant must, as a condition to licensing, comply with applicable security requirements under s. 100.06, Stats., and department rules under ch. ATCP 100, Wis. Adm. Code. Since dairy plant licenses expire on April 30 annually, dairy plants must comply with applicable security requirements in order to qualify for license renewal on May 1 of each year.
(2) Under s. 100.06, Stats., and ch. ATCP 100, a dairy plant operator who purchases milk from producers must do one of the following:
(a) File with the department of agriculture, trade and consumer protection (“department”) audited financial statements which show that the operator meets minimum financial standards established by s. 100.06, Stats.
(b) File security with the department in an amount equal to at least 75% of the operator's ”maximum liability to producers,” as calculated under s. ATCP 100.45(5).
(c) Enter into a dairy plant trusteeship under ch. ATCP 100, Subch. V.
(3) Under s. ATCP 100.45(5), a dairy plant operator's “maximum liability to producers” is based on the plant operator's largest monthly purchase of milk during the preceding license year. Milk prices hit all time record highs in 1998, dramatically increasing monthly dairy plant payrolls. Security requirements for the 1999 license year are currently based on these inflated 1998 monthly payrolls, even though 1999 monthly payrolls have dropped dramatically in response to price changes.
(4) Since December 1998, the average market price for raw milk has fallen by approximately 40%. Dairy economists expect BFP average prices to remain at least 12% to 16.2% below last year's average during 1999. Because of the dramatic decline in milk prices, dairy plants have smaller producer payroll obligations than they had in 1998.
(5) Prices received by Wisconsin dairy plants for processed dairy products have also fallen dramatically since December. This has created serious financial hardships for some dairy plants.
(6) Current security requirements, based on 1998 producer prices and payrolls, are excessive in relation to current payroll obligations and impose an added financial burden on dairy plants. Current security requirements under s. ATCP 100.45(5), based on last year's prices, are at least 31 to 48% higher than they would be if calculated at current prices.
(7) Because of the dramatic decline in dairy prices, some dairy plant operators are required to file large amounts of additional security, often amounting to millions of dollars. This is a major expense for affected operators. Operators may find it difficult, financially, to obtain and file the required security. If a dairy plant is unable to file the required security in connection with the May 1, 1999 license renewal, the department will forced to take action against the dairy plant's license. This could result in the forced closing of some unsecured dairy plants. The forced closing of an unsecured plant may, in turn, result in serious financial losses to producer patrons.
(8) By requiring excessive security based on last year's prices, current rules are making it unnecessarily difficult and expensive for dairy plants to obtain and file security. This could contribute to the financial failure of some dairy plants, or to the forced closing of some unsecured plants. Dairy plant financial failures or closings, if they occur, may cause serious and widespread financial injury to milk producers in this state. This constitutes a serious and imminent threat to the public welfare.
(9) In order to reduce the risk of dairy plant financial failures or forced closings, rule amendments are urgently needed to adjust dairy plant security requirements to appropriate levels based on current milk prices. The rule amendments will relieve financially stressed dairy plants from unnecessary financial burdens and will make it easier for those dairy plants to file security with the department. That, in turn, will reduce the risk of dairy plant financial failures, or the forced closing of unsecured plants, which may adversely affect milk producers.
(10) Rule amendments, to be effective, must be promulgated prior to the dairy plant license year beginning May 1, 1999. That is not possible under normal rulemaking procedures. Therefore, the following emergency rule is needed to protect the public welfare.
(11) Should milk prices rise beyond the levels currently anticipated for the license year beginning May 1, 1999, so that security filed under this emergency rule is less than 75% of a dairy plant operator's current monthly producer payroll, the operator is required to notify the department of that fact under s. 100.06, Stats., and s. ATCP 100.20(3). The department may demand additional security at that time.
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