Other Rule Changes. This rule eliminates current fish farm registration fee exemptions for research institutions and government agencies. Those entities will now have to pay the same registration fees as other fish farm operators.
Rule Effective Date. This rule will not take effect until calendar year 2008. There are different annual license cycles for different types of licensed entities, and license fee increases will not be implemented until the first annual license cycle beginning after the rule effective date.
Fiscal Estimate
State fiscal effect. Animal Health program operations are funded by a combination of general state tax dollars (79%), animal health fee revenues (19%) and federal funds (2%). This does not include federal funds that are passed through to program beneficiaries in the form of grants or other assistance.
Recent state budgets have done the following:
• Reduced annual GPR funding (general tax dollars) for animal health by nearly $300,000.
• Lapsed approximately $130,000 in animal health fee revenue (one-time lapse) to the state general fund.
• Assigned more staff to be paid from animal health fee revenues.
Program costs have gone up this year, as DATCP has filled critical animal health positions that had been held vacant. DATCP has only about 37 authorized permanent positions (field and office positions) for its entire animal health and disease control program, so it is important that key positions be filled.
As a result of these combined factors, the positive cash balance in the animal health fee revenue account is declining rapidly. DATCP collects about $300,000 in animal health fees each year, and projects fee revenue expenditures approaching $600,000 each year. DATCP projects a negative cash balance of $131,500 in the animal health fee revenue account beginning in FY 2008. If nothing is done, the negative cash balance will go to $371,400 in FY 2009, $633,300 in FY 2010 and $924,500 in FY 2011. DATCP is proposing a fee increase to remedy this funding deficit and maintain critical disease control programs.
This rule will increase animal health fee revenues by approximately $375,150 per year when it is fully implemented beginning in FY 2008-09. DATCP projects that this fee increase will stabilize animal health program staffing and funding for the foreseeable future, without further fee increases.
Without this fee increase or other funding support, DATCP will need to reduce animal health staffing at a time when bio-security and disease threats have grown. DATCP has only about 37 permanent staff for all of its animal health and disease control programs (does not count temporary, federally-funded positions). Staff reductions will increase risks to Wisconsin's major livestock industries, which rely on effective animal health and disease control programs. Staff reductions will also increase disease risks to humans and wildlife.
Local fiscal effect. This rule will have no fiscal impact on local units of government.
Business impact. This rule affects animal markets, animal dealers, animal truckers, livestock farmers, deer farmers, fish farmers and veterinarians. Many of these businesses are “small businesses" as defined in s.
227.114 (1) (a), Stats.
This rule increases some current animal health fees, and creates some new fees. Some fee increases may affect several sectors of the livestock industry, while others are limited to specific livestock sectors.
This rule will increase overall industry costs by a combined total of approximately $375,150 per year, once the rule is fully implemented. Fee increases for individual businesses are generally modest, and will depend on business size and type. Smaller businesses generally pay lower fees than large businesses. Fees are based, in part, on animal health costs related to each affected industry.
This rule does not change other animal health regulations. This rule requires no additional recordkeeping, and no added professional services to comply. For small businesses, the effective date of this rule is automatically delayed by 2 months, pursuant to s.
227.22(2)(e), Stats. The delayed effective date is not expected to have a significant impact on the timing or amount of fee collections under this rule.
Federal Regulation
DATCP administers animal disease control programs in cooperation with the United States Department of Agriculture, Animal and Plant Health Inspection Service (“the federal bureau").
Federal grants pay for about 2% of Wisconsin's animal health program operations. This does not include federal funds that are passed through to program beneficiaries in the form of grants or other assistance.
The federal bureau has well-established control programs for historically important diseases such as tuberculosis and brucellosis. The federal bureau has less well-developed programs for new or localized diseases, or emerging animal-based industries. In those areas, states often play a leadership role. For example, Wisconsin is a recognized national leader in the regulation of farm-raised deer (chronic wasting disease) and aquaculture.
States have independent authority to regulate animal health and movement, including imports from other states. However, states strive for reasonable consistency, based on standards spelled out in federal regulations. States typically incorporate federal standards where they exist, and play a key role in implementing federal standards.
The federal bureau does not license animal businesses, or regulate state fees. This fee rule does not duplicate or conflict with any federal fees or standards.
Surrounding State Programs
Surrounding state animal health programs are broadly comparable to those in Wisconsin, but differ in a number of ways. State programs reflect differences in animal populations, animal-based industries, and disease threats. Programs for historically important diseases, such as tuberculosis and brucellosis, tend to be fairly similar between states and are based on well-established federal standards. Programs for newer diseases or newer forms of agriculture, such as farm-raised deer and aquaculture, tend to be more variable.
Animal health fees fund about 19% of Wisconsin's animal health program operations. In the surrounding states, by contrast, animal health program operations are funded almost entirely by state general fund appropriations. Some states charge almost no license fees. Other states charge fees but deposit them to the state general fund (so they do not have a direct impact on program appropriations).
Minnesota: The state-funded portion of Minnesota's animal health program is funded 98% by state general fund appropriations and 2% by industry fees. The farm-raised deer (chronic wasting disease control) program is the only program that charges fees. That fee is $10 per farm-raised deer, up to maximum of $100 per herd.
Iowa: The state-funded portion of Iowa's animal health program is funded 100% by state general fund appropriations. Iowa charges nominal industry fees that are deposited to the state general fund. The cost to collect the fees (which are set by statute) exceeds the amount of revenue produced. Fees include the following:
• $50 for an annual animal market license, plus $10 for each market agent.
• $25 for an annual animal dealer license, plus $10 for each dealer agent.
• $5 for an annual pig dealer license, plus $3 for each dealer agent.
• $3 for an annual poultry buyer license.
• $10 for an annual hatchery license.
• $25 to register a livestock brand for 5 years.
• $10 for an annual sheep dealer license.
• $10 for an annual bull breeder license.
Michigan: The state-funded portion of Michigan's animal health program is funded 95% by state general fund appropriations, 2% by segregated fees from racing, and 3% by animal industry fees. Michigan fees include the following:
• $400 for an annual livestock market (auction) license.
• $250 for an annual livestock collection point (buy station) license.
• $150 for an annual horse market (auction) license.
$50 for an annual livestock dealer license.
• $100 for an annual fish farm license ($75 for a renewal).
Illinois: The state-funded portion of Illinois' animal health program is funded 100% by state general fund appropriations, except that part of its poultry program (eggs) is funded by industry fees. The state also charges some lab testing fees for non-traditional diseases. Illinois charges nominal license fees that are deposited to the state general fund. The cost to collect the fees (which are set by statute) exceeds the amount of revenue produced. Fees include the following:
• $200 for an annual livestock market (auction) license.
• $25 for an annual livestock dealer license ($10 for a renewal license), plus $10 for each additional business location and $5 for each dealer agent.
• $25 for an annual feeder swine dealer license ($10 for a renewal license), plus $5 for each dealer agent.
Notice of Hearings
Agriculture, Trade and Consumer Protection
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announces that it will hold public hearings on a proposed amendment to chapters ATCP 140, 141, 147 and 148, Wis. Adm. Code, relating to the Marketing Order Program and Wisconsin Commodities organized under ATCP 140. Those commodities being directly affected are Cherries, Ginseng and Mint.
DATCP will hold three public hearings at the times and places shown below. DATCP invites the public to attend the hearings and comment on the proposed rule. Following the public hearings, the hearing record will remain open until Wednesday, August 29, 2007 for additional written comments. Comments may be sent to the Division of Agricultural Development at the address below or by e-mail to
noel.favia@datcp.state.wi.us.
Copy of Rule
You may obtain a free copy of this rule by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Agricultural Development, Marketing Order Program, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling (608) 224-5140 or emailing
noel.favia@datcp.state.wi.us.
Comments
To provide comments or concerns relating to small business, please contact DATCP's small business regulatory coordinator Keeley Moll at the address above, by emailing to
Keeley.Moll@datcp.state.wi.us or by telephone at (608) 224-5039.
Hearing impaired persons may request an interpreter for these hearings. Please make reservations for a hearing interpreter by August 1, 2007, by writing to Noel Favia, Division of Agricultural Development, P.O. Box 8911, Madison, WI 53708-8911, telephone (608) 224-5140. Alternatively, you may contact the DATCP TDD at (608) 224-5058. Handicap access is available at the hearings.
Hearing Dates and Locations
Tuesday, August 9, 2007
7:00 p.m. to 8:00 p.m.
Marathon County, UW Extension Office
212 River Drive, Rooms 1 & 2
Wausau, WI 54403
Tuesday, August 14, 2007
1:00 p.m. to 2:30 p.m.
Wisconsin Dept. of Agriculture
1st Floor, Board Room
2811 Agriculture Drive
Madison, WI 53708
Wednesday, August 15, 2007
7:00 p.m. to 8:00 p.m.
Wisconsin Peninsular Research Station
Conference Room
4312 Hwy 42
Sturgeon Bay, WI 54235
Analysis Prepared by the Dept. of Agriculture, Trade and Consumer Protection
Statutes Interpreted:
Ch.
96, Stats.
DATCP has general authority, under s.
93.07(1), Stats., to adopt rules interpreting statutes under its jurisdiction. DATCP is specifically authorized, under s.
96.15, Stats., to adopt rules to administer the marketing order program under ch.
96, Stats.
Background
The Department of Agriculture, Trade and Consumer Protection (DATCP) administers Wisconsin's agricultural marketing order program under ch.
96, Stats. DATCP may adopt marketing orders for Wisconsin agricultural commodities, with the approval of affected commodity producers. DATCP has adopted marketing orders for cherries, cranberries, corn, milk, mint, soybeans, ginseng and potatoes.
A marketing order imposes assessments on commodity producers. Affected producers elect a marketing board, which spends assessment revenues for purposes specified in the marketing order. Marketing orders may be used to finance market development, research and education. DATCP monitors marketing board activities for compliance with applicable law, including the marketing order.
DATCP has adopted general rules to govern the operation of marketing orders and marketing boards. DATCP must also adopt marketing orders as rules. Affected producers must approve (by referendum) the adoption, amendment or repeal of a marketing order. DATCP may bill a marketing board for administrative services provided to the marketing board.
Rule Contents
This rule does all of the following:
• Amends current rules (ATCP 140) governing all marketing order referenda and marketing board elections:
• Authorizes, but does not require, DATCP to conduct referenda and elections by electronic mail.
• As an alternative to mailing ballots to all eligible producers in a marketing board election (but not a marketing order referendum), authorizes DATCP to notify producers how they may obtain election ballots.
• Amends the cherry marketing order (ATCP 141) to eliminate the requirement of an advisory referendum every 4 years (non-binding advisory referendum asks producers whether they wish to continue the cherry marketing order). A marketing order may be repealed at any time, with or without a non-binding advisory referendum, if the repeal is approved in a formal binding referendum of affected producers.
• Repeals the mint marketing order (ATCP 147).
