Policy Alternatives. The Department must take some action to meet its statutory obligation with regard to the Fund balance attributable to Vegetable Contractors. A permanent solution must be reached or the Fund will not be able to meet its statutory obligation of default protection as dictated by Wis. Stat. ch. 126. While awaiting the results of the actuarial study, the Department issued emergency rules for all three affected industries. The final one will lapse in February 2018. Due to the length of an administrative rule process, the Department may seek emergency rules in the interim. However, the Department anticipates that any emergency rule would mirror the final permanent rule that may be adopted.
4. Statutory authority for the rule (including the statutory citation and language):
Wis. Stat. § 25.463, creates the Wisconsin Agricultural Producer Security Trust Fund. Wis. Stat. § 93.07 (1), directs Department to make such regulations as are necessary for the discharge of all the powers and duties of the department. Wis. Stat. § 126.19 (4) (b), permits Department to specify form and content of disclosure in grain dealer deferred payment contracts. Wis. Stat. § 126.46 (1), directs Department to establish by rule annual fund assessments for milk contractors. Wis. Stat. § 126.81 (1) (a), allows Department to promulgate rules to interpret and implement Wis. Stat. ch. 126. Wis. Stat. § 126.88 (2) (a), directs the Department to promulgate a rule modifying assessments when the fund balance or a portion of the fund balance falls below the minimum amounts or rises above the maximum amounts required under Wis. Stats. § 126.88 (1) (a) through (e). 5. Estimate of the amount of time that state employees will spend to develop the rule and of other resources necessary to develop the rule:
The Department estimates that it will use approximately 0.25 FTE staff to develop this rule. That includes time required for investigation and analysis, rule drafting, preparing related documents, coordinating council meetings with the Agricultural Producer Security Council, holding public hearings, and communicating with other affected persons and groups. The Department will use existing staff to develop this rule.
6. Description of all entities that may be impacted by the rule:
Milk, grain, and vegetable producers also have a stake in the health of the Fund, and could potentially be impacted by changes to the agricultural producer security overall fund balance.
7. Summary and preliminary comparison of any existing or proposed federal regulation that is intended to address the activities to be regulated by the rule:
The Department will consider the Perishable Agricultural Commodities Act (PACA) provisions in any rewrite of the administrative rule. PACA is a federal program that addresses the activity of buying and selling fresh produce.
8. Anticipated economic impact:
The Department expects the proposed rule to have minimal to no economic impact statewide or locally to the general public.
However, the three industries (grain, milk, and vegetable) will benefit from the solvency of the Fund if a future default should occur.
Contact Person: David A. Woldseth, Program and Policy Analyst, Division of Trade and Consumer Protection, DATCP; Phone (608) 224-5164.
