AB306: Bill Text

April 17, 1997 - Introduced by Representatives Green, Ainsworth, Otte, Goetsch, Sykora, Olsen, Gard, Powers, Hoven, Albers, Hasenohrl and Hahn, cosponsored by Senators Cowles, Schultz and Zien. Referred to Committee on Agriculture.

AB306,2,2 An Act to repeal 20.115 (7) (w), 25.465 (9), 94.64 (3) (c), 94.68 (4) and 94.73 (6) (e); to renumber and amend 94.703 (3) (c); to amend 20.115 (7) (e), 20.115 (7) (h), 20.285 (1) (hm), 25.46 (2), 25.46 (4), 25.46 (4m), 25.46 (4s), 25.465 (1) and (2), 25.465 (3) and (4), 25.465 (5) to (8), 94.64 (3) (b), 94.64 (8m) (a), 94.65 (6) (a) 1., 94.65 (6) (a) 3., 94.68 (1) (intro.), 94.704 (2) (intro.), 94.73 (1) (g), 94.73 (2) (c), 94.73 (3m) (L), 94.73 (3m) (r), 94.73 (4) (a), 94.73 (5) (e), 94.73 (6) (d), 94.73 (8), 94.73 (13) and 287.09 (3) (b); to repeal and recreate 94.64 (4) to (6), 94.68 (2), 94.68 (3), 94.681, 94.685 (2), 94.685 (3), 94.703 (3) (a), 94.704 (3) (a), 94.72 (6) (a), 94.73 (6) (b) and (c) and 94.73 (7); and to create 20.115 (7) (i), 25.465 (2m), 25.465 (4m), 94.64 (3r), 94.64 (6m) and (6p), 94.65 (6) (c), 94.702 (3m), 94.703 (3) (c) 2., 94.704 (3) (c), 94.72 (6) (am) and 94.73 (15) of the statutes; relating to: the agricultural chemical cleanup program, fees related to pesticides, fertilizers and soil and plant additives, granting rule-making authority and making an appropriation.

Analysis by the Legislative Reference Bureau

Currently, under the agricultural chemical cleanup program, this state reimburses certain persons for a portion of the costs incurred in cleaning up discharges of agricultural chemicals. The reimbursement is generally equal to 75% of the costs that exceed $7,500 for a person required to have a license related to fertilizer or pesticides, or that exceed $3,000 for any other person, but that do not exceed $100,000. If the cleanup requires groundwater remediation, the person also receives 80% of the costs that exceed $100,000 but that do not exceed $300,000.

This bill increases the amount of reimbursement provided under the agricultural chemical cleanup program. Under this bill, the reimbursement is generally equal to: 1) 80% of the costs that exceed $7,500 for a person who is required to have a license related to fertilizer or pesticides, a person with more than 25 employes or a person with annual sales of more than $2,500,000; or 2) 80% of the costs that exceed $3,000 for any other person, but that do not exceed $400,000. This bill makes several other changes to the agricultural chemical cleanup program, including requiring an applicant to have the department of agriculture, trade and consumer protection (DATCP) approve a work plan if the cleanup costs exceed $7,500, rather than $20,000 as under current law.

Current law requires a person who manufactures or labels pesticides for sale in this state to obtain a license from DATCP. Each licensee must pay DATCP an annual license fee. For each pesticide other than a household pesticide, a licensee must pay DATCP a surcharge that is based on the volume of sales and is deposited in the agrichemical management fund. Household pesticides include disinfectants, insect repellants and house and garden pesticides.

This bill creates a new category of pesticides called industrial pesticides. The bill establishes different license fees for household pesticides, industrial pesticides and other nonhousehold pesticides. A person who manufacturers or labels industrial pesticides is exempt from the surcharge imposed on manufacturers and labelers of other nonhousehold pesticides and that is used to fund the agricultural chemical cleanup program. An industrial pesticide is a pesticide that is not a household pesticide and is either a wood preservative or a pesticide labeled for use in controlling algae, fungi, bacteria, other microscopic organisms or mollusks on specified materials, such as paper or textiles, or in paints and fuels, industrial processes, cooling or heating systems, medical equipment or drinking water systems.

This bill divides various fees related to pesticides, fertilizer and soil and plant additives into fees and surcharges. The surcharges are used to fund the agricultural chemical cleanup program. The bill suspends the surcharges for 2 years. The bill also modifies some of the fees.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB306, s. 1 Section 1. 20.115 (7) (e) of the statutes is amended to read:

AB306,3,4 20.115 (7) (e) Agricultural chemical cleanup program; general fund. As a continuing appropriation Biennially, the amounts in the schedule for reimbursement of corrective action costs under s. 94.73.

AB306, s. 2 Section 2. 20.115 (7) (h) of the statutes is amended to read:

AB306,3,13 20.115 (7) (h) Fertilizer research assessments. All moneys collected under s. ss. 94.64 (4) (am) (a) 2. and 94.65 (6) (a) 3. to be used as provided in s. 94.64 (8m) for fertilizer research. From this paragraph, The department may use up to 3.5% of the gross amount collected shall be transferred to the appropriation under sub. (1) (a) as reimbursement for administrative expenses incurred by the department in connection with the moneys collected to collect moneys under s. ss. 94.64 (4) (am) (a) 2. and 94.65 (6) (a) 3. Moneys under this paragraph may not be utilized used for any other research or to influence either state or federal legislation.

AB306, s. 3 Section 3. 20.115 (7) (i) of the statutes is created to read:

AB306,3,19 20.115 (7) (i) Agricultural chemical cleanup reimbursement. All moneys received under ss. 94.64 (3r) (b) and (4) (a) 5., 94.681 (3) and (6) (a) 4., 94.685 (3) (a) 2., 94.703 (3) (a) 2., 94.704 (3) (a) 2. and 94.73 (5) (e) and (8) and all moneys transferred under 1997 Wisconsin Act .... (this act), section 55 (2 ), for reimbursement of corrective action costs under s. 94.73.

AB306, s. 4 Section 4. 20.115 (7) (w) of the statutes is repealed.

AB306, s. 5 Section 5. 20.285 (1) (hm) of the statutes is amended to read:

AB306,4,2 20.285 (1) (hm) Extension outreach. All moneys collected under s. 94.64 (4) (ar) (a) 3. to be used for university of Wisconsin-extension outreach services.

AB306, s. 6 Section 6. 25.46 (2) of the statutes is amended to read:

AB306,4,5 25.46 (2) The fees imposed under s. 94.64 (4) (an) (a) 4. for groundwater management.

AB306, s. 7 Section 7. 25.46 (4) of the statutes is amended to read:

AB306,4,8 25.46 (4) The moneys specified under s. 94.68 (4) (b), (bm) and (bt) 94.681 (7) (a) 1. and 2. for groundwater management.

AB306, s. 8 Section 8. 25.46 (4m) of the statutes is amended to read:

AB306,4,11 25.46 (4m) The moneys specified under s. 94.68 (4) (c) 94.681 (7) (a) 3. for environmental repair.

AB306, s. 9 Section 9. 25.46 (4s) of the statutes is amended to read:

AB306,4,13 25.46 (4s) The fees imposed under s. 94.681 (4) for environmental repair.

AB306, s. 10 Section 10. 25.465 (1) and (2) of the statutes are amended to read:

AB306,4,16 25.465 (1) The fees imposed collected under s. 94.64 (3) (c), (3m) (b), (3r) (a) and (4) (a) and (d) 1.

AB306,4,18 (2) The fees imposed collected under s. 94.65 (2) (a), (3) (b) and (6) (a) 1. and (b).

AB306, s. 11 Section 11. 25.465 (2m) of the statutes is created to read:

AB306,4,20 25.465 (2m) The fees collected under s. 94.66 (4).

AB306, s. 12 Section 12. 25.465 (3) and (4) of the statutes are amended to read:

AB306,4,23 25.465 (3) The fees and surcharges specified under s. 94.68 (4) (a) collected under s. 94.681 (2), (5) and (6) (a) 3., except as provided in s. 94.681 (7) (a).

AB306,4,24 (4) The fees imposed collected under s. 94.685 (3) (a) 1.

AB306, s. 13 Section 13. 25.465 (4m) of the statutes is created to read:

AB306,5,1 25.465 (4m) The fees collected under s. 94.702 (3).

AB306, s. 14 Section 14. 25.465 (5) to (8) of the statutes are amended to read:

AB306,5,3 25.465 (5) The fees imposed collected under s. 94.703 (3) (a) 1.

AB306,5,4 (6) The fees imposed collected under s. 94.704 (3) (a) 1.

AB306,5,5 (7) The fees imposed collected under s. 94.705 (4) (b).

AB306,5,6 (8) The fees imposed collected under s. 94.72 (5) (b) and (6) (a) and (i).

AB306, s. 15 Section 15. 25.465 (9) of the statutes is repealed.

AB306, s. 16 Section 16. 94.64 (3) (b) of the statutes is amended to read:

AB306,5,14 94.64 (3) (b) An applicant for a license under par. (a) shall submit an application on a form provided by the department. The application shall include information reasonably required by the department for licensing purposes. As part of the application, the applicant shall identify the each business location or mobile unit that the applicant uses to manufacture fertilizer in this state. The application shall be accompanied by all applicable fees under par. (c) sub. (3r).

AB306, s. 17 Section 17. 94.64 (3) (c) of the statutes is repealed.

AB306, s. 18 Section 18. 94.64 (3r) of the statutes is created to read:

AB306,5,18 94.64 (3r) License fees and surcharges. (a) A person applying for a license under sub. (3) shall pay the following annual license fees:

AB306,5,20 1. For each business location and each mobile unit that the applicant uses to manufacture fertilizer in this state, $30.

AB306,5,22 2. If the applicant distributes, but does not manufacture, fertilizer in this state, $30.

AB306,6,2 (b) Beginning with the license year that begins on August 15, 2000, a person applying for a license under sub. (3) shall pay the following agricultural chemical cleanup surcharges, unless the department establishes lower surcharges under s. 94.73 (15):

AB306,6,5 1. For each business location and each mobile unit that the applicant uses to manufacture fertilizer in this state, other than a business location or mobile unit that is also licensed under s. 94.685 or 94.703, $20.

AB306,6,7 2. If the applicant distributes, but does not manufacture, fertilizer in this state, $20.

AB306,6,10 (c) The department shall deposit the license fees collected under par. (a) in the agrichemical management fund. The department shall credit the surcharges collected under par. (b) to the appropriation account under s. 20.115 (7) (i).

AB306, s. 19 Section 19. 94.64 (4) to (6) of the statutes are repealed and recreated to read:

AB306,6,15 94.64 (4) Tonnage fees and surcharges. (a) Requirement. Except as provided in par. (b), a person who is required to be licensed under sub. (3) and who sells or distributes fertilizer in this state shall pay to the department the following fees and surcharges on all fertilizer that the person sells or distributes in this state:

AB306,6,18 1. A basic fee of 25 cents per ton for fertilizer sold or distributed from July 1, 1997, to June 30, 1999, and 32 cents per ton for fertilizer sold or distributed after June 30, 1999, with a minimum fee of $25.

AB306,6,19 2. A research fee of 10 cents per ton, with a minimum fee of $1.

AB306,6,20 3. An additional research fee of 10 cents per ton, with a minimum fee of $1.

AB306,6,21 4. A groundwater fee of 10 cents per ton, with a minimum fee of $1.

AB306,6,24 5. An agricultural chemical cleanup surcharge of 38 cents per ton on all fertilizer that the person sells or distributes in this state after June 30, 1999, unless the department establishes a lower surcharge under s. 94.73 (15).

AB306,6,25 (b) Exemptions. Paragraph (a) does not apply to any of the following:

AB306,7,2 1. Fertilizer sold or distributed to a manufacturer for use in the further manufacture or processing of fertilizer.

AB306,7,4 2. Fertilizer sold or distributed to a person licensed under sub. (3) (a), for resale by that person.

AB306,7,6 (c) Use of fees and surcharges. 1. The department shall deposit the fee under par. (a) 1. in the agrichemical management fund.

AB306,7,8 2. The department shall credit the fee under par. (a) 2. to the appropriation account under s. 20.115 (7) (h).

AB306,7,10 3. The department shall credit the fee under par. (a) 3. to the appropriation account under s. 20.285 (1) (hm).

AB306,7,12 4. The department shall deposit the fee under par. (a) 4. in the environmental fund for groundwater management.

AB306,7,14 5. The department shall credit the surcharge under par. (a) 5. to the appropriation account under s. 20.115 (7) (i).

AB306,7,17 (5) Tonnage report and fee payment. (a) Requirement. A person who is required to pay fees or surcharges under sub. (4) shall do all of the following by August 14 annually:

AB306,7,20 1. File with the department a report that states the number of tons of each grade of fertilizer sold or distributed in this state during the 12 months ending on June 30 of that year on which the person is required to pay those fees or surcharges.

AB306,7,22 2. Pay the fees and surcharges under sub. (4) on the tonnage reported under subd. 1.

AB306,7,24 (b) Extended deadline. The department may extend the filing deadline under par. (a) for up to 30 days for cause, in response to a request filed before August 14.

AB306,8,4 (c) Late payment. If a person fails to pay a fee or surcharge when due under this section, the amount of the fee or surcharge is increased by $10 or 10% of the amount that the fee or surcharge would have been if paid when due, whichever is greater.

AB306,8,7 (d) Tonnage equivalents. A tonnage report under par. (a) 1. shall report liquid fertilizer tonnage in terms of dry fertilizer tonnage equivalents, as prescribed by the department.

AB306,8,9 (e) Audit. The department may audit a tonnage report under par. (a) 1., including the records on which the tonnage report is based.

AB306,8,15 (6) Records. A person who manufactures, sells or distributes fertilizer in this state shall keep records showing the grades and quantities of fertilizer manufactured, sold or distributed in this state. The person shall keep the records relating to the 12 months covered by a report under par. (a) 1. for at least 24 months following the date of filing the report. The person shall make the records available to the department for inspection and copying upon request.

AB306, s. 20 Section 20. 94.64 (6m) and (6p) of the statutes are created to read:

AB306,8,22 94.64 (6m) Records confidential. The department may not disclose information obtained under sub. (5) or (6) that reveals the grades or amounts of fertilizer sold or distributed by any person. This subsection does not prohibit the department from preparing and distributing aggregate information that does not reveal the grades or amounts of fertilizer sold or distributed by individual sellers or distributors.

AB306,8,25 (6p) Summary license suspension. (a) The department may by written notice, without prior hearing, summarily suspend the license of any person who fails to file a report or pay a fee or surcharge as required under sub. (5).

AB306,9,3 (b) A summary license suspension under par. (a) takes effect on the date specified in the notice, which may be no sooner than 10 days after the date on which the notice is received by the recipient.

AB306,9,10 (c) A person whose license is suspended under par. (a) may request a meeting concerning the suspension. The department shall hold an informal meeting with the requester as soon as reasonably possible and not more than 10 days after the requester makes the request in writing, unless the requester agrees to a later date. If the matter is not resolved at the informal meeting, the requester may request a formal contested case hearing under ch. 227. A request for a hearing does not stay a summary suspension under par. (a).

AB306,9,13 (d) A person who is required to pay a fee or surcharge under sub. (5) remains obligated to pay the fee or surcharge regardless of whether the person continues to be licensed under this section.

AB306, s. 21 Section 21. 94.64 (8m) (a) of the statutes is amended to read:

AB306,9,21 94.64 (8m) (a) Use of funds. At the end of each fiscal year, the moneys collected under sub. (4) (am) (a) 2. and s. 94.65 (6) (a) 3. shall be forwarded to the university of Wisconsin system to be used for research on soil management, soil fertility, plant nutrition problems and for research on surface water and groundwater problems which may be related to fertilizer usage; for dissemination of the results of the research; and for other designated activities tending to promote the correct usage of fertilizer materials.

AB306, s. 22 Section 22. 94.65 (6) (a) 1. of the statutes is amended to read: