The State of Wisconsin Department of Agriculture, Trade and Consumer Protection announces that it will hold public hearings on the proposed revisions to rule, ch. ATCP 48, relating to drainage district finances and grants to county drainage boards. The hearings will be held at the times and places shown below. The public is invited to attend the hearings and make comments on the proposed rules. Following the public hearings, the hearing record will remain open until March 30, 2001, for additional written comments.
A copy of this rule may be obtained, free of charge, from the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Agricultural Resource Management, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708, by calling 608-224-4627 or by sending a faxed request to 608-224-4615. Copies will also be available at the hearing location.
For the hearing or visually impaired, non-English speaking, or for those with other personal circumstances which might make communication at the hearing difficult, this agency will, to the maximum extent possible, provide aids including an interpreter, or a non-English, large print or taped version of hearing documents. Please contact the address or phone number listed above or the TDD telephone at 608-224-5058 as soon as possible. The hearing locations are handicap accessible.
The following two hearings are scheduled:
Tuesday, February 27, 2001, 7:00 PM until 9:00 PM
Outagamie County Highway Department
1313 Holland Road
Appleton, WI
Wednesday, February 28, 2001, 7:00 PM until 9:00 PM
Jefferson County Courthouse
307 Main Street, Room 202
Jefferson, WI
Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection
Statutory Authority: ss. 93.07 (1), 88.11, and 88.15 (2)
Statutes Interpreted: ss. 88.15 and 88.18
In the 1999-2001 biennial budget act (1999 Wis. Act 9), the Legislature created a state grant program to help county drainage boards comply with new legal requirements related to drainage districts. This rule implements that grant program. This rule also clarifies that county drainage boards must keep their drainage district accounts with the county treasurer.
Background
Drainage districts are special purpose districts formed to drain land, primarily for agricultural purposes. Drainage districts control the flow of water in large areas of the state, and have a major impact on agriculture, land use and the environment. Some districts have been in existence since the 1880s. There are approximately 199 drainage districts located in 30 counties.
A county drainage board oversees all the drainage districts within each county. The Wisconsin department of agriculture, trade and consumer protection (DATCP) helps county drainage boards comply with state drainage laws, ch. 88, Stats., and ch. ATCP 48, Wis. Adm. Code.
When a drainage district is created, the circuit court approves drainage district specifications that determine the rights and responsibilities of affected landowners. But many old drainage specifications are unclear, and some have been lost or destroyed. A lack of clear specifications can lead to costly problems and legal disputes.
New Legal Requirements
Recent law changes require county drainage boards to update the specifications for all drainage districts. For each drainage district, a county drainage board must create a professional quality map set showing drainage district boundaries, drain alignments, drain cross-sections and drain grade profiles. Drainage boards must also develop plans to maintain drainage districts according to the updated specifications.
County drainage boards must assess drainage district landowners in order to pay for drainage district specifications, maintenance plans and other costs. Drainage boards must assess costs according to the benefits that landowners derive from the drainage district. In order to assess costs fairly, some county drainage boards may need to modernize their outdated assessments of landowner benefits.
Grant Program
In the 1999-2001 biennial budget act, the Legislature provided grant funds to help county drainage boards meet their new legal responsibilities. The Legislature provided $500,000 for the state fiscal year ending June 30, 2001, with a possibility of continued annual appropriations until June 30, 2006. From these appropriations, DATCP may award grants for 60% of eligible drainage board costs.
Initial Grants
On September 15, 2000, DATCP awarded drainage board grants for the state fiscal year ending June 30, 2001. DATCP offered a total of just over $450,000 to 12 county drainage boards. DATCP awarded grants for the following types of projects, in descending priority order:
• Drainage specifications (map sets).
• Drainage benefit reassessments.
• Drainage district maintenance plans.
If the Legislature continues to appropriate funds, DATCP will continue to award drainage board grants in future fiscal years. This rule establishes standards and procedures for the grant program.
County Drainage Board Accounts
According to s. 88.18, Stats., the county treasurer must serve as treasurer of all drainage districts under the jurisdiction of the county drainage board. The county treasurer may deduct a portion of the interest earned on county drainage board accounts, to cover relevant costs incurred by the county treasurer and county zoning administrator. The county drainage board may appoint its own treasurer, who serves as deputy county treasurer. This rule clarifies the handling of county drainage board funds, to ensure proper documentation and accountability.
Rule Contents
Grants to County Drainage Boards; General
Under this rule, DATCP may award grants to county drainage boards to help them comply with ch. 88, Stats., and ch. ATCP 48, Wis. Adm. Code. A grant may pay a county drainage board for up to 60 percent of the drainage board's costs to do any of the following:
• Develop and adopt drainage district specifications
(map sets).
• Reassess benefits in a drainage district.
• Develop and adopt drainage district maintenance plans. (Grants do not pay for actual maintenance costs.)
• Carry out other eligible projects identified in DATCP's annual request for grant proposals.
Annual Request for Grant Proposals
Under this rule, DATCP must annually request grant proposals from county drainage boards. DATCP must issue its annual request, in writing, to each county drainage board. The request must include all the following:
• The amount of grant funds available for distribution in the grant year. Each grant year ends on June 30.
• The types of projects for which county drainage boards may request funding.
• DATCP's grant priorities, if any.
• General grant terms and conditions that may affect grant applications.
• Grant application procedures.
• A grant application deadline.
• A grant application form.
Grant Applications
To apply for a grant, a county drainage board must submit a completed grant application form that includes all the following:
• A description of the project for which the county drainage board seeks a grant.
• The estimated cost of the project.
• The county drainage board's plan for financing the project.
• Competitive bidding or other procedures that the county drainage board will use to control project costs.
• Other information required by DATCP.
Grant Awards
Under this rule, DATCP must act on all grant applications within 90 days after the annual grant application deadline. DATCP must notify all grant applicants of its grant awards.
Grant Contracts
Under this rule, DATCP must enter into a grant contract with each grant recipient. The contract must specify grant terms and conditions. DATCP must distribute grant funds according to the grant contract.
Grant Payments
DATCP will make grant payments after the county drainage board documents that it has completed the funded project and paid its share of the project costs. DATCP will not pay any project costs incurred after the end of the grant term specified in the grant contract.
A county drainage board must submit a payment request on a form provided by DATCP. The county drainage board must document that it has completed the project and paid its share of the project costs.
DATCP will make grant payments to the county treasurer, for the benefit of the county drainage board. If the county drainage board hires an agent to complete a project on its behalf, DATCP may make a check jointly payable to the county treasurer and that agent.
County Drainage Board Accounts
Under this rule, whenever a person receives funds on behalf of a county drainage board or any drainage district, that person must promptly deposit those funds with the county treasurer. The county treasurer may not pay out any funds without proper authorization from the county drainage board.
Pursuant to s. 88.18(1), Stats., the county treasurer may retain a portion of the interest received on drainage district funds, to cover costs that the county treasurer and county zoning administrator incur to provide services to the county drainage board. The amount retained may not exceed the amount authorized by s. 88.18(1), Stats.
Under this rule, the county treasurer must keep a separate account for each drainage district. The county treasurer must keep complete accounting records in the county treasurer's office. The accounting records must include records of all receipts, deposits, payments, county deductions and account balances. The county drainage board must also file, with the county treasurer, a copy of every DATCP grant contract with the county drainage board.
The county treasurer must retain the accounting records as county records. Except as provided in ch. 88, Stats., or ch. ATCP 48, the county treasurer must treat the records as the treasurer would treat comparable county accounting records for retention and disposal purposes.
Under this rule, if a county drainage board appoints its own treasurer, that treasurer serves as a deputy of the county treasurer. The county drainage board treasurer must promptly deposit, with the county treasurer, all funds received on behalf of the county drainage board or any drainage district. The drainage board treasurer may not pay out any funds before depositing them with the county treasurer.
The drainage board treasurer may not pay out any funds without proper authorization from the county drainage board and the county treasurer. The county treasurer may not refuse to authorize a payment approved by the county drainage board, unless there are insufficient funds in the drainage district account to make that payment. The county treasurer must keep complete records of all drainage district accounts (the drainage board treasurer may keep duplicate records).
Fiscal Estimate
Impact of Rule Revision to State Government
Chapter ATCP 48 is administered by the Department of Agriculture, Trade and Consumer Protection (DATCP). The proposed rule revisions codify a cost-share grant program intended to distribute as much as $500,000 per year for a maximum of six years to county drainage boards. Administration of these grants will be handled by existing DATCP staff. The DATCP will experience some increase in costs associated with WiSMART charges and other miscellaneous administrative expenses, such as postage; however, these administrative costs will be minimal and will be absorbed by the DATCP. Funds provided by the Legislature for this program are in a new general purpose revenue appropriation.
Impact of Rule Revision to County Drainage Boards
Funds provided by the DATCP will go directly to county drainage boards to pay 60% cost-sharing for eligible expenses associated with the development of district specifications, benefits reassessment, and compliance (maintenance) plans. The availability of these funds will encourage drainage boards to proceed with this work as the grant funds greatly reduce the financial burden on drainage district landowners. District landowners will be assessed by the drainage board for the remaining 40% of eligible project expenses.
Initial Regulatory Flexibility Analysis
Scope of the Rule
The proposed revision of Chapter ATCP 48, Wis. Adm. Code, will have a positive impact on small businesses. The revision codifies a newly instituted cost-share grant program designed to assist drainage boards with producing specific work products, which will in turn improve their management of drainage districts. It establishes the process and timelines for drainage boards to apply and receive grant funds. These funds are specifically intended to reduce the financial burden on drainage district landowners, as it is the landowners who finance compliance with existing rule requirements. Items that may be cost-shared include the development of:
1. District Specifications (including detailed maps)
2. Benefits Reassessments
3. Compliance (maintenance) Plans
The rule revision also establishes County Treasurers as the official treasurers for all drainage board financial matters. A drainage board may appoint a deputy treasurer to assist the County Treasurer with management of drainage board fiscal matters, but it is the county treasurer who is responsible for retention of all grants-related documents.
Businesses Affected
The small businesses affected by the rule revision include engineering consulting firms and others who will be hired by county drainage boards to produce the specific work products. Additionally, farms and agricultural food processors whose lands lie within the boundaries of drainage districts will benefit from the cost-sharing to be provided; as members of the drainage district, their financial burden will be reduced by 60 percent. It is estimated that there are 199 drainage districts located in 30 Wisconsin counties. Currently, 24 counties have drainage boards in place. Only drainage boards may request grant funds from the department.
Fiscal Impact
Small businesses in drainage districts will experience a positive fiscal impact from this rule revision as drainage boards are provided financial assistance to comply with existing rule provisions. This rule revision provides up to $500,000 per year for six years in cost-share assistance. Prior to this revision, small businesses located within drainage districts would have borne the entire cost of complying with ch. ATCP 48 requirements.
Prior to this revision, a very small percentage of drainage boards took the initiative to produce drainage district specifications and compliance (maintenance) plans required by ch. ATCP 48. Most drainage boards considered the cost of complying with the rule to be too great a burden on district landowners. It is anticipated that this cost-share assistance will greatly reduce that burden and, thereby, encourage greater compliance with the rule. It is estimated that this funding will allow about ten drainage boards to produce work products for a total of 40 districts each year. At this pace, it is anticipated that all districts may be assisted over the six-year life of the grants.
Record Keeping
The proposed rule revision will not impose any new record keeping requirements on small businesses. A few new record keeping requirements are required of county treasurers and drainage boards members.
Professional Skills Required to Comply
Small businesses will not need to acquire any new skills -- or retain additional professional services -- to comply with the rule revisions.
Notice of Hearing
Commerce
(Flammable & Combustible Liquids, Ch. Comm 10)
