Rule-Making Notices (Hearing Notices)

(DATCP DOCKET #: 14-R-01)

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announces that it will hold a public hearing on the proposed repeal of Chapter ATCP 104, relating to leaf tobacco, buying and selling. DATCP will hold one public hearing at the time and place shown below.

Hearing Information

Date:   Wednesday, July 9, 2014
Time:   9:00 a.m. to 11:00 a.m.
Location:   Board Room (1st Floor)
  Department of Agriculture, Trade and
  Consumer Protection
  2811 Agriculture Drive
  Madison, Wisconsin, 53718-6777

Hearing impaired persons may request an interpreter for this hearing. Please make reservations for a hearing interpreter by July 7, 2014, by writing to Jennifer Heaton-Amrhein, Division of Trade and Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911; or by emailing [e-mail]; or by telephone at [phone]. Alternatively, you may contact the DATCP TDD at [phone]. The hearing facility is handicap accessible.

Appearances at the Hearing and Deadline for Submission of Comments

DATCP invites the public to attend the hearings and comment on the proposal. Following the public hearing, the hearing record will remain open until July 23, 2014, for additional written comments. Comments may be sent to the Division of Trade and Consumer Protection at the address below, or to [e-mail], or to http://adminrules.wisconsin.gov.

Copies of the Rule and Comments Relating to Small Business

You can obtain a free copy of this hearing draft rule and related documents including the economic impact analysis by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Trade and Consumer Protection, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling [phone] or by emailing [e-mail]. Copies will also be available at the hearing. To view the hearing draft rule online, go to: http://adminrules.wisconsin.gov.

Comments or concerns relating to small business may also be addressed to DATCP's small business regulatory coordinator Keeley Moll at the address above, or by email to [e-mail], or by telephone at [phone].

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

This rule regulates transactions between tobacco growers and tobacco buyers. The department is proposing to repeal the rule.

Statutes interpreted

Section 100.20 (1), Stats.

Statutory Authority

Sections 93.07 (1) and 100.20 (2) (a), Stats.

Explanation of statutory authority

DATCP has broad general authority, under s. 93.07 (1), Stats., to interpret laws under its jurisdiction. DATCP has authority under s. 100.20 (2) (a), Stats., to promulgate administrative rules forbidding trade practices which are determined by the department to be unfair and prescribing trade practices that are determined by the department to be fair.

Related statutes and rules

There are no Wisconsin Statutes or other rules that regulate transactions between tobacco growers and tobacco buyers.

Plain language analysis

Background

The existing ch. ATCP 104, Wis. Adm. Code, prohibits leaf tobacco buyers from engaging in certain practices:

•   Attempting to induce another tobacco buyer to engage in specific activities that would artificially manipulate the market price for tobacco.

•   Refusing to negotiate with any grower for the purchase of tobacco because such tobacco was previously graded or submitted for grade.

•   Falsely representing in negotiations with a grower that any particular lot or crop of tobacco was purchased at less than the price actually paid, or that another tobacco buyer has or will cease buying tobacco.

•   Purchasing tobacco under any contract which does not include a specific time within which delivery and payment are to be made.

•   Giving or offering to give any grower any secret or separately stated bonus, commission, payment, or other consideration.

The existing rule also prohibits tobacco growers or sellers from soliciting or receiving any secret or separately stated bonus, commission, payment or other consideration.

This rule was originally promulgated as Department of Agriculture General Order #138 in 1952. At that time, tobacco farming was a prominent business in Wisconsin, and much of the crop was sold in cash markets at the conclusion of the growing season. This rule was necessary to ensure fair transactions between growers and buyers.

Today, the crop is generally produced and sold under contract (as opposed to a cash market at the end of the season). This means that ch. ATCP 104, Wis. Adm. Code, as it is currently written, is irrelevant to the current industry.

Rule Content

This rule would repeal chapter ATCP 104, Leaf Tobacco, Buying and Selling, in its entirety.

Summary of, and comparison with, existing or proposed federal statutes and regulations

There are no known federal statutes or regulations (existing or proposed) that are comparable to ch. ATCP 104, Wis. Adm. Code.

Comparison with rules in adjacent states

There are no known rules in adjacent states that are comparable to ch. ATCP 104, Wis. Adm. Code.

Summary of factual data and analytical methodologies

This proposed rule simply deletes an unused chapter from the administrative code. It does not rely on factual or analytical data other than anecdotal information that growing under contract has replaced cash markets.

Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis

Since repealing the rule has no effect on business (see above), no analysis is required under this section.

Effect on Small Business

This proposed rule would simply delete an outdated and obsolete chapter of the administrative code. DATCP does not anticipate any effect on small business.

DATCP Contact Person

Questions and comments related to this rule may be directed to

Jennifer Heaton-Amrhein

Department of Agriculture, Trade and Consumer Protection

P.O. Box 8911

Madison, WI 53708-8911

Telephone [phone]

E-Mail: [e-mail].

Initial Regulatory Flexibility Analysis

Rule Subject:   Leaf Tobacco Buying and Selling

Adm. Code Reference: Ch. ATCP 104

Rules Clearinghouse #: CR 14-039

DATCP Docket #:   14-R-01

Rule summary

This rule would repeal chapter ATCP 104, Leaf Tobacco, Buying and Selling, in its entirety.

Background

The existing ch. ATCP 104, Wis. Adm. Code, prohibits leaf tobacco buyers from engaging in certain practices:

•   Attempting to induce another tobacco buyer to engage in specific activities that would artificially manipulate the market price for tobacco.

•   Refusing to negotiate with any grower for the purchase of tobacco because such tobacco was previously graded or submitted for grade.

•   Falsely representing in negotiations with a grower that any particular lot or crop of tobacco was purchased at less than the price actually paid, or that another tobacco buyer has or will cease buying tobacco.

•   Purchasing tobacco under any contract which does not include a specific time within which delivery and payment are to be made.

•   Giving or offering to give any grower any secret or separately stated bonus, commission, payment, or other consideration.

The existing rule also prohibits tobacco growers or sellers from soliciting or receiving any secret or separately stated bonus, commission, payment, or other consideration.

This rule was originally promulgated as Department of Agriculture General Order #138 in 1952. At that time, tobacco farming was a prominent business in Wisconsin, and much of the crop was sold in cash markets at the conclusion of the growing season. This rule was necessary to ensure fair transactions between growers and buyers.

Today, the crop is generally produced and sold under contract (as opposed to a cash market at the end of the season). This means that ch. ATCP 104, Wis. Adm. Code, as it is currently written, is irrelevant to the current industry.

Small Business affected

The existing rule regulates certain transactions between tobacco growers and tobacco manufacturing or brokerage firms. Tobacco growers are likely to be small businesses. However, the existing rule is limited to regulating cash-market transactions for tobacco leaves (which would occur after the crop is harvested). Wisconsin grown tobacco is no longer traded with this type of transaction. Instead, Wisconsin tobacco growers generally grow and sell on contracts that are negotiated before the growing season begins. Therefore, the existing rule is obsolete and has no effect on small business.

This proposed rule would simply delete an outdated and obsolete chapter from the administrative code. DATCP does not anticipate any effect on small business.

Reporting, bookkeeping, and other procedures

The proposed rule does not require any additional reporting, bookkeeping or other procedures.

Professional skills required

The proposed rule does not require and additional professional skills.

Accommodation for small business

This proposed rule would simply delete an outdated and obsolete chapter of the administrative code, and does not have any effect on small business. Therefore, no accommodation is necessary.

Conclusion

This rule does not have any impact on businesses, including “small businesses." It is not subject to the delayed “small business" effective date provided in s. 227.22 (2) (e), Stats.

ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Ch. ATCP 104 Leaf Tobacco Buying and Selling
Subject
Leaf Tobacco Buying and Selling
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The existing rule regulates certain transactions between tobacco growers and tobacco manufacturing or brokerage firms. However, the existing rule is limited to regulating cash-market transactions for tobacco leaves (which would occur after the crop is harvested). Wisconsin grown tobacco is no longer traded with this type of transaction. Instead, Wisconsin tobacco growers generally grow and sell on contracts that are negotiated before the growing season begins. Therefore, the existing rule is obsolete. This proposed rule would simply delete an outdated and obsolete chapter from the administrative code.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
This proposed rule would simply delete an outdated and obsolete chapter from the administrative code. DATCP does not anticipate that it would have any economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units, or the state's economy as a whole.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Benefits This proposed rule removes an obsolete and unneeded chapter from the Administrative Rules. Alternatives DATCP could leave ch. ATCP 104, Wis. Stats. in place. The rule is obsolete, and does not impose any costs or benefits on tobacco growers or tobacco buyers. DATCP could also modify the rule to make it more relevant to contemporary leaf-tobacco transactions.
Long Range Implications of Implementing the Rule
See the discussions above.
Compare With Approaches Being Used by Federal Government
There are no known federal statutes or regulations (existing or proposed) that are comparable to ch. ATCP 104, Wis. Adm. Code.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
There are no known rules in adjacent states that are comparable to ch. ATCP 104, Wis. Adm. Code. Comments Received in Response to Web Posting and DATCP Response No comments were received in response either to the posting on the DATCP external website or the statewide administrative rules website.

Notice of Rulemaking Pursuant to
s. 186.118 (2), Stats.

Financial Institutions — Credit Unions

The Department of Financial Institutions has promulgated a rule creating Chapter DFI-CU 75, as required by Section 186.118 (2), Wis. Stats., which reads as follows:

186.118 (2) (a) The office of credit unions shall promulgate a rule establishing a list of activities and powers incidental to the business of a credit union that are authorized for federally chartered credit unions as of April 18, 2014.

(b) The office of credit unions shall submit the proposed rule under par. (a) to the legislative reference bureau in an electronic format approved by the legislative reference bureau, and the legislative reference bureau shall publish the proposed rule in the notice section of the Wisconsin administrative register under s. 35.93, Stats.

(c) Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g), (4), and (4m), 227.15, 227.16, 227.17, 227.18, 227.185, 227.19, and 227.30 do not apply to the office of credit unions in promulgating a rule under par. (a) or to any rule promulgated by the office of credit unions under par. (a). Guidelines prescribed by executive order of the governor do not apply to the office of credit unions in promulgating a rule under par. (a).

The rule will be published June 30, 2014, in Register June 2014 No. 702, effective July 1, 2014.

Text of Rule

The text of Chapter DFI-CU is as follows:

Chapter DFI—CU 75