Related Statutes and Rules
N/A
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
The Joint Committee for Review of Administrative Rules did not request a preliminary hearing on the scope. The department did not hold a preliminary hearing on the scope.
Comparison with Rules in Adjacent States
Illinois. Illinois agricultural grant applications require information reasonably related to a determination of applicant or project feasibility. The department may request the applicant to present an oral presentation to the review committee of the project. Public notice of the availability of funding and the application due dates are published in the state newspaper and on the department’s website. The evaluation of the proposal includes: a determination the project meets the objectives; applicant demonstrates a personal commitment match; an adequate and realistic budget has been projected; and the applicant and project meets eligibility requirements. The contract specifies the following: the payment will be made on a reimbursable basis; what constitutes permissible expenditures of grant funds; the project scope and schedule; the grant amount; the conditions, timing, and manner in which the funds will be paid; terms of the agreement; and the dates for submitting progress reports and other requirements. The department has the authority to audit records related to the project. In the case of breach of contract, the department can cease payments; institute recovery of grant funds; and take any other action considered appropriate to protect the department’s interest in the project.
Iowa. Iowa agriculture grant applications require the applicant and project meet statutory requirements. The grant applications are evaluated based upon stated criteria in the request for grant proposals. The contract requirements include: identification of grant recipient; project description; total cost of the project; project completion deadline; project completion requirements as preconditions for payment; and penalties for breach of contract.
Michigan. Michigan’s administrative code does not include procedures for agriculture grants. However, the Department of Agriculture and Rural Development’s website does indicate procedures for request for grant proposals, evaluation, and contracts similar to this proposed rule.
Minnesota. Minnesota agricultural development grant application requires the following: identifiable information of applicant; name of individual authorized to negotiate and sign contracts; project description; description of qualifications of personnel who will be assigned the project; a budget showing total project costs and contributions; documentation of financial condition of the applicant and any other information reasonably related to a determination of applicant or project eligibility or project feasibility. The criteria utilized in the evaluation of the application include: whether the applicant and project are eligible and meet the contribution requirements; whether the project is feasible and likely to produce the desired objective; the degree to which the proposed project employs novel, creative and innovative ideas; the degree to which the proposed project would have a generic impact upon the sector for which it is proposed; whether the experience or capability of the applicant make it likely the project will have a successful completion; whether the proposed budget is adequate to accomplish the proposed project; the degree to which similar or related projects by this applicant or other persons have been successful or unsuccessful; whether the applicant appears able to apply generally accepted accounting principles and appears financially qualified for the project; and the applicant’s past performance as a grantee under the program, if applicable. The commissioner shall notify the applicant in writing of the approval or disapproval of the grant application. Each approved grant must be governed by a contract with the following terms specified: The total amount of the grant and the timing of grant payments; the starting and termination dates of the contract; dates for submitting progress reports; a list of the eligible costs of the project; and a statement that the grantee must inform the commissioner of any significant change in implementation of the project, and must obtain prior approval before initiating the change. If there is a breach of contract, the commissioner may modify the terms of the grant contract as necessary to assure that project objectives are met, may terminate the contract, or may seek a legal remedy in a court of competent jurisdiction. If there is misrepresentation by applicant or grantee, the commissioner may do one or more of the following: reject the application, conduct an examination of the use of grant funds; modify the terms of the contract as necessary to assure that project objectives are met; terminate the grant contract; or recover grant funds through available legal remedies.
Summary of Factual Data and Analytical Methodologies
This proposed rule was developed by reviewing current practices and standards for grant proposals and evaluations, contracts, and audit procedures.
Analysis and Supporting Documents Used to Determine Effect on Small Business or in Preparation of Economic Impact Analysis
Small business participation in grant programs is voluntary. The current rule was reviewed to address burdensome requirements.
The rule was posted on the department’s website for economic comments for 14 days.
Fiscal Estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Effect on Small Business
This proposed rule does not have an economic impact on small business, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by:
Telephone at (608) 224-5024
The Regulatory Flexibility Analysis is attached.
Department Contact Person
Sharon Henes, Program and Policy Analyst - Advanced
Division of Agricultural Development
Department of Agriculture, Trade and Consumer Protection
P.O. Box 8911
Madison, WI 53708-8911
(608) 381-2808
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TEXT OF RULE
Section 1. Ch. ATCP 161 (title) is repealed and recreated to read:
SOMETHING SPECIAL FROM WISCONSIN
Section 2. Subchs. I, IV, V and VI of ch. ATCP 161 are repealed.
Section 3. Ch. ATCP 163 is created to read: AGRICULTURAL DEVELOPMENT
ATCP 163.01 Definitions. In this chapter:
(1) “Applicant” means a person who submits a grant proposal.
