• The producers retain title to the milk and to the processed dairy products made from that milk.
• The operator does not market the milk or processed dairy products, but promptly delivers the processed dairy products to the producers or their agent for consumption or marketing.
• The operator does not commingle producer-owned milk or dairy products with other milk or dairy products.
• The operator provides the custom processing services under a written contract with each producer or the producer's agent. The contract must clearly and conspicuously disclose that:
- The producer retains title to the milk and dairy products.
- The producer's milk shipments are not secured under ch.
126, Stats.
Producer Agents
This emergency rule clarifies that a milk contractor does not qualify as a producer agent, for purposes of ch.
126, Stats., unless all the following apply:
• The milk contractor procures producer milk in this state solely as the agent of the milk producers.
• The milk contractor does not take title to the producer milk, or to any dairy products made from the producer milk.
• The milk contractor markets the producer milk under a written contract with each milk producer. The contract must clearly and conspicuously disclose all the following:
- That the milk contractor does not take title to the producer's milk, or any dairy products made from that milk.
- That the milk contractor receives payments on behalf of the producer, and holds them in trust for the producer.
- The terms and conditions of payment to the producer.
- The procedure by which the milk contractor will receive payment on behalf of the producer and make payments to the producer, including any trust fund arrangement.
- The milk contractor's compensation for serving as the producer's agent, and the method by which the milk contractor will receive that compensation from the milk producer.
- A milk security disclosure statement (see below).
• The milk contractor does not process, as a producer agent, more than 5 million pounds of producer milk in any month.
• The milk contractor gives, to each recipient of producer milk marketed by the contractor, a written invoice stating that the milk is producer milk not owned by the milk contractor.
• The milk contractor files a monthly report with DATCP. The milk contractor must file the report on or before the 25th day of the month. The report must include all the following:
- The name and address of each person to whom the milk contractor marketed, in the preceding month, producer milk procured in this state.
- The total pounds of producer milk that the milk contractor marketed to each person in the preceding month.
- The milk contractor's total milk payment obligation to milk producers for producer milk that the contractor marketed in the preceding month.
Persons Marketing Processed Dairy Products for Milk Producers
This emergency rule clarifies that ch.
126, Stats., does not apply to a person who markets only processed dairy products for milk producers, provided that the person does not procure, market or process any raw producer milk.
Milk Payment Report by License Applicant
Under the new law, an applicant for an annual milk contractor license must report (1) the applicant's total annual payment obligation to milk producers, and (2) the largest obligation incurred at any time during the applicant's last fiscal year. The reported amounts are used to determine fund assessments and security requirements, if any. This rule clarifies that the applicant must report (1) the total amount paid for milk procured during the applicant's last fiscal year, and (2) the largest amount paid for milk procured in any single month during the last fiscal year.
Milk Security Disclosure Statement
This emergency rule requires milk contractors to make milk security disclosures to milk producers, pursuant to s.
126.81 (4), Stats., so that producers understand the extent to which milk payments are backed by the agricultural producer security program. The milk contractor must give the disclosure when the milk contractor first procures milk from the producer, and again in June of each year. The disclosure must consist of one of the following written statements:
• The following statement if the milk contractor contributes to the fund (and is not a producer agent who also files security):
IMPORTANT NOTICE
[Name of milk contractor] contributes to Wisconsin's Agricultural Producer Security Fund. This fund helps ensure that milk producers will be paid for the milk they ship to contributing contractors. If a contributing contractor fails to pay a producer, the fund may pay up to 80% of the first $60,000 of the producer's unpaid milk payment claim, and up to 75% of any additional unpaid milk payroll claim.
• The following statement if the milk contractor is required to file security with DATCP and is not a producer agent:
IMPORTANT NOTICE
[Name of milk contractor] does not participate in Wisconsin's Agricultural Producer Security Fund. We have filed security with the State of Wisconsin to cover part, but not all, of our milk payment obligations to milk producers. The security equals at least 75% of the largest amount that we owed producers at any time during our last completed fiscal year. The security is in the following form(s): [specify forms of security].
• The following statement if the milk contractor does not contribute to the fund or file security with DATCP, but is licensed solely on the basis of the contractor's financial statement:
IMPORTANT NOTICE
[Name of milk contractor] does not participate in Wisconsin's Agricultural Producer Security Fund, and has not filed security with the State of Wisconsin to secure payments to milk producers. Our financial statement shows positive equity, a current ratio of at least 1.25 to 1.0, and a debt-to-equity ratio of no more than 2.0 to 1.0.
• The following statement if the milk contractor is a producer agent who does not contribute to the fund and is required to file security with DATCP:
IMPORTANT NOTICE
[Name of milk contractor] does not participate in Wisconsin's Agricultural Producer Security Fund. We have filed security with the State of Wisconsin to cover part, but not all, of our milk payment obligations to milk producers. The security equals 15% of the largest amount that we owed to producers at any time during our last completed fiscal year. The security is in the following form(s): [specify forms of security].
• The following statement if the milk contractor is a producer agent who contributes to the fund and files security with DATCP:
IMPORTANT NOTICE
[Name of milk contractor] contributes to Wisconsin's Agricultural Producer Security Fund as a producer agent. If we fail to pay a producer, the fund may pay up to 15% of the producer's allowed claim.
Fiscal Estimate
The department does not expect this emergency rule to have any material fiscal effect.
Regulatory Flexibility Analysis
The department will prepare and publish its proposed regulatory flexibility analysis permanent rule to create ch.
ATCP 96, Wis. Adm. Code.
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to ss.
101.15 (2) (e) and
101.19 (1) (h), Stats., the Department of Commerce will hold a public hearing on proposed rules relating to mine safety fees.
The public hearing will be held as follows:
Date and Time: Location:
Wednesday, May 15, 2002 Room 3C,
1:00 p.m. Thompson Commerce Center
201 West Washington Avenue
Madison
Analysis Prepared by the Department of Commerce
Section
101.19, Stats., requires the Department to fix and collect fees by rule which shall, as closely as possible, equal the cost of providing services. The Department's current fees for the mine safety program in chapter Comm 2 basically consist of an annual safety service fee based on aggregate production and do not accurately relate to the level of services provided. The proposed rules reduce the production-based fees approximately 25% and create a more equitable fee-for-service mechanism. A fee of $330 per course for the mine safety training courses conducted by the Department is created in the proposed rules.
Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until May 24, 2002, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to Ronald Acker, Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689.
This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon request by a person with a disability.
The proposed rules and an analysis of the proposed rules are available on the Internet at the Safety and Buildings Division web site at:
www.commerce.state.wi.us/SB/SB-HomePage.html. Paper copies may be obtained without cost from Roberta Ward, Department of Commerce, Program Development Bureau, P.O. Box 2689, Madison, WI 53701-2689, Email
rward@commerce.state.wi.us, telephone (608) 266-8741 or (608) 264-8777 (TTY). Copies will also be available at the public hearings.
Initial Regulatory Flexibility Analysis
1. Types of small businesses that will be affected by the rules.
The proposed rules will affect any business that operates a mine, pit or quarry in Wisconsin.
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
There are no reporting or bookkeeping procedures required for compliance with the proposed rules.
3. Types of professional skills necessary for compliance with the rules.
There are no types of professional skills necessary for compliance with the proposed rules.
Fiscal Estimate
The Department proposes lowering the safety service fee currently charged to mine operators. This fee is based on the annual production of mines. The annual costs associated with the programs this fee funds (Explosive Materials, Fireworks Manufacture, and Mine Safety) have been re-estimated and reduced from $270,700 to $194,900. The re-estimate of costs results in less revenue needed to fund the programs.
The Department proposes lowering the safety service fee by 25%, resulting in revenues collected more closely matching the costs of the programs funded by the revenue.
Annualized Items Current Proposed Difference
Mine Safety Training
Course Revenue $50,000 $50,000 $0
Blasters Certification
Fee Revenue $24,000 $24,000 $0
Safety Service Fee
Revenue $238,000 $178,500 -$59,500
Total $312,000 $252,500 -$59,500
Program Costs $194,900 $194,900 $0
Environmental Analysis
Notice is hereby given that the Department has considered the environmental impact of the proposed rules. In accordance with ch.
Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Notice of Hearing
The Wisconsin Department of Employee Trust Funds will hold a public hearing to review this proposed rule, which amends ss.
ETF 20.25 (1) (a) and
(2), Wis. Adm. Code, relating to the annuity dividend effective date and proration of annuity dividends in accordance with the provisions of s.
227.16 (1), Stats.
