DATCP Docket: 22-R-02
Clearinghouse Rule: 22-065
Final Rule Draft
November 17, 2022
STATE OF WISCONSIN
DEPARTMENT OF AGRICULTURE, TRADE AND CONSUMER PROTECTION
PROPOSED ORDER OF THE DEPARTMENT OF AGRICULTURE, TRADE AND CONSUMER PROTECTION ADOPTING RULES
PROPOSED ORDER
An order of the department of agriculture, trade and consumer protection to repeal subchs. I, IV, V, and VI of ch. ATCP 161; to repeal and recreate Chapter ATCP 161 (title); and to create Chapter ATCP 163 relating to grants.
Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection
Explanation of Agency Authority
The department has general rule making authority under s. 93.07 (1), Stats., to make and enforce such regulations, not inconsistent with law, as it may deem necessary for the exercise and discharge of all the powers and duties of the department, and to adopt such measures and make such regulations as are necessary and proper for the enforcement by the state of chs. 93 to 100, which regulations shall have the full force of law. The department has the authority under s. 93.07 (18) (b) 6., Stats., to establish by rule requirements for recipients of a grant of at least $100,000 to submit to the department a verified statement. The department has the authority under s. 93.07 (18) (b) 7., Stats., to establish by rule policies and procedures for a grant recipient who submits false information or misleading information to the department or fails to comply with the terms of a contract entered into with the department and fails to provide to the satisfaction of the department an explanation for the noncompliance. The department has the authority under s. 93.48 (1), Stats., to promulgate rules for the buy local grant program and under s. 93.49, Stats., to promulgate rules for the farm to school grant. Related Statutes and Rules
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Plain Language Analysis
The proposed rule removes the grant programs from ch. ATCP 161 and creates a new chapter (ATCP 163) for grants to create clarity between the grant programs and the Something Special from Wisconsin program. The proposed rule also creates general requirements for the agricultural and economic development grants administered by the department’s division of agricultural development rather than each program having its own requirements in order to create consistency. The statutes already provide specific requirements for the buy local and farm to school grants relating to the specific purposes for awarding the grants. The proposed rule provides for the department to issue a request for proposals at least once during every state fiscal biennium. The request for proposals must include a deadline and address for submitting a proposal, contact information for a department representative, applicant criteria for grant eligibility, a description of the grant objections or eligible projects, format and content requirements for the proposal, and any other terms or conditions that are relevant. The department will issue a general news release announcing the request as well as post it on the department’s website. In addition, the department will mail or email it to anyone who requests it.
The proposed rule states the department will evaluate grant proposals submitted and announce the results within 90 days of the proposal deadline. When conducting the evaluation, the department is required to consider: whether the proposal complies with the request for proposals and meets the grant’s objectives; the viability of the project; the adequacy of the project and budget; the financial capacity to complete the project; the qualifications of the persons carrying out the project; whether the reimbursable expenses are identified; and the capacity to provide any required matching funds. The grant award letter is signed by the department’s secretary, deputy secretary or assistant deputy secretary and includes the person receiving the grant, the amount of the grant and the purpose for the grant. No funding commitment is final until a contract is signed.
The department is prohibited from releasing any funds until there is a grant contract between the grant recipient and the department. The contract term is for two years but may be extended one additional year upon request. The contract term may extend beyond the biennium the funds were appropriated in as long as the department encumbered the funds.
The contract must include: the recipient, the amount of the grant, actions required of the recipient, any matching funds, the expected deliverables, payment schedule and conditions for receiving funds, repayment requirements, and all required documentation, reports and accounting. A verified statement, signed by an independent certified public accountant and director or principal officer of the grant recipient, is required for grants more than $100,000. The verified statement must include: the amount of funds received; an itemized description showing how the funds were spent; the nature and amount of matching funds; and documentation of the deliverables provided by the recipients. If a loan recipient submits false or misleading information to the department or fails without reasonable justification to comply with the terms of the contract, the department can: recoup payments made to the recipient; withhold payments to be made to the recipient; or impose a forfeiture on the recipient.
On an annual basis, the department will review a sample of grants to determine the accuracy of the information reported to the department.
Grant proposals are open to public inspection after the grants are awarded. The department may withhold access to portions of a proposal application that contains trade secrets identified by the grant applicant.
Summary of, and Comparison with, Existing or Proposed
Federal Statutes and Regulations
The federal government has a variety of types of grants with requirements outlined in Title 2 of the Code of Federal Regulations. Generally, federal requirements for the request for grant proposal, evaluation of the submitted proposal, and contracts are similar to the proposed rule.
Summary of Public Comments Received during Preliminary Comment Period
and at Public Hearing on Statement of Scope
