AB800: Bill Text

LRB-4442/1

RCT:hmh:rs

2001 - 2002 LEGISLATURE

2001 Assembly BILL 800

February 12, 2002 - Introduced by Representatives Ott, Olsen, Hines, Petrowski, Vrakas, Sykora, Gunderson and Miller, cosponsored by Senators Hansen and Schultz. Referred to Committee on Agriculture.

AB800,1,10 An Act to repeal 94.681 (7) (a) 2. and 94.72 (6) (a) 1.; to consolidate, renumber and amend 94.681 (7) (a) (intro.) and 1.; to amend 25.46 (4), 25.465 (8), 94.64 (3m) (b) (intro.), 94.64 (4) (a) 1., 94.64 (4) (a) 5., 94.681 (3), 94.681 (3m), 94.72 (6) (a) 2., 94.73 (6) (b), 94.73 (6) (c) (intro.) and 94.73 (15) (a); to repeal and recreate 94.681 (2); and to create 94.681 (1) (cm), 94.681 (3s) and 94.72 (6) (a) 2m. of the statutes; relating to: fees and surcharges related to pesticides, fertilizer, and feed, reimbursement under the agricultural chemical cleanup program, transfers from the agrichemical management fund to the environmental fund, and the required balance in the agricultural chemical cleanup fund.

Analysis by the Legislative Reference Bureau

Current law requires a person who sells nonagricultural or special-use fertilizer with low percentages of nitrogen, phosphate, and potash to obtain a permit from DATCP. The fee for this permit is currently $25. This bill increases the fee to $100.

Current law generally requires a person who manufactures or distributes fertilizer in this state to obtain an annual license from DATCP. A person who is required to be licensed must pay several fees and surcharges to DATCP, including a basic fee of 30 cents per ton of fertilizer sold or distributed or $25, whichever is greater. This bill increases the basic fee to 45 cents per ton for fertilizer sold or distributed after June 30, 2006, but does not change the $25 minimum fee.

Currently, a person who is licensed to manufacture or distribute fertilizer must also pay an agricultural chemical cleanup surcharge of 38 cents per ton of fertilizer sold or distributed, unless DATCP establishes a lower surcharge by rule. DATCP rules specify a surcharge of 38 cents per ton. This bill increases the maximum agricultural chemical cleanup surcharge by 50 cents per ton.

Current law generally requires a person who manufactures or distributes animal feed to obtain an annual license from DATCP. A person who is required to be licensed must pay a feed inspection fee of 23 cents per ton. This bill increases the annual feed inspection fee for feed sold after January 1, 2003, to 28 cents per ton or $30, whichever is greater.

Under the agricultural chemical cleanup program, DATCP pays a portion of the costs of cleaning up spills of agricultural chemicals. Currently, the payment equals 80% of eligible costs that exceed a deductible and are less than a specified maximum. This bill reduces the reimbursement rate under the agricultural chemical cleanup program from 80% to 75%.

Current law generally requires a person who manufactures or labels pesticides for sale in this state to obtain an annual license from DATCP. The license year begins on January 1. A person who is required to be licensed must pay a number of fees and surcharges when the person applies for a license. The fees and surcharges are based on sales during the 12 months ending on September 30 of the year preceding the year for which a license is sought.

Under this bill, the fees and surcharges paid by an applicant for a pesticide manufacturer or labeler license are based on sales during the 12 month period that ends on September 30 of the license year. When the person applies for a license, the person pays the fees and surcharges based on estimated sales during that payment period. At the end of the license year, the person pays any balance due based on actual sales or may request a refund from DATCP for any overpayment. If the person estimated that sales would be less than 90% of sales during the preceding year and the person's payment due at the end of the year is more than 20% of the payment made based on estimated sales, the person is also required to pay a penalty for underestimating.

Under current law, pesticide manufacturer or labeler license fees are deposited into the agrichemical management fund except that $94 for each pesticide for which a licensee pays a fee is deposited into the environmental fund and an additional $30 for each household pesticide for which a licensee pays a fee is deposited into the environmental fund. Under this bill, all of the license fees are deposited into the agrichemical management fund except that $60 for each household or industrial pesticide for which a licensee pays a fee is deposited into the environmental fund.

Current law authorizes DATCP to reduce surcharges that are deposited into the agricultural chemical cleanup fund below the amounts specified in the statutes. The law also requires DATCP to adjust the surcharge amounts as necessary to maintain a balance in the fund at the end of each fiscal year of at least $2,000,000 but not more than $5,000,000. This bill eliminates the minimum required fiscal year-end balance for the agricultural chemical cleanup fund and reduces the maximum balance to $3,000,000.

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:

AB800, s. 1 Section 1. 25.46 (4) of the statutes is amended to read:

AB800,3,3 25.46 (4) The moneys specified under s. 94.681 (7) (a) 1. and 2. for environmental management.

AB800, s. 2 Section 2. 25.465 (8) of the statutes is amended to read:

AB800,3,6 25.465 (8) The fees collected under s. 94.72 (5) (b) and (6) (a) 1. and 2. and 2m. and (i).

AB800, s. 3 Section 3. 94.64 (3m) (b) (intro.) of the statutes is amended to read:

AB800,3,11 94.64 (3m) (b) (intro.) An application for a permit under par. (a) 2. shall be on a form prescribed by the department and shall be accompanied by a proposed product label and a nonrefundable fee of $25 $100. The department may require that the applicant substantiate, by scientific evidence:

AB800, s. 4 Section 4. 94.64 (4) (a) 1. of the statutes is amended to read:

AB800,3,16 94.64 (4) (a) 1. A basic fee of 23 30 cents per ton for fertilizer sold or distributed beginning on October 29, 1999 July 1, 2001, and ending on June 30, 2001 2006, and 30 45 cents per ton for fertilizer sold or distributed after June 30, 2001 2006, with a minimum fee of $25.

AB800, s. 5 Section 5. 94.64 (4) (a) 5. of the statutes is amended to read:

AB800,4,3 94.64 (4) (a) 5. An agricultural chemical cleanup surcharge of 38 88 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).

AB800, s. 6 Section 6. 94.681 (1) (cm) of the statutes is created to read:

AB800,4,6 94.681 (1) (cm) "Payment period" means the 12 months ending on September 30 of the calendar year for which a license is sought under s. 94.68.

AB800, s. 7 Section 7. 94.681 (2) of the statutes is repealed and recreated to read:

AB800,4,14 94.681 (2) Annual license fee. An applicant for a license under s. 94.68 shall pay an annual license fee for each pesticide product that the applicant sells or distributes for use in this state. The amount of the fee is based on sales of pesticide products during the payment period. An applicant shall pay an estimated fee before the start of each license year as provided in sub. (3s) (a) and shall make a fee adjustment payment before the end of the license year if required under sub. (3s) (b). Except as provided in sub. (5) or (6), the fee for each pesticide product is as follows:

AB800,4,15 (a) For each household pesticide product:

AB800,4,17 1. If the applicant sells less than $25,000 of the product during the payment period for use in this state, $265.

AB800,4,19 2. If the applicant sells at least $25,000 but less than $75,000 of the product during the payment period for use in this state, $750.

AB800,4,21 3. If the applicant sells at least $75,000 of the product during the payment period for use in this state, $1,500.

AB800,4,22 (b) For each industrial pesticide product:

AB800,4,24 1. If the applicant sells less than $25,000 of the product during the payment period for use in this state, $315.

AB800,5,2 2. If the applicant sells at least $25,000 but less than $75,000 of the product during the payment period for use in this state, $860.

AB800,5,4 3. If the applicant sells at least $75,000 of that product during the payment period for use in this state, $3,060.

AB800,5,5 (c) For each nonhousehold pesticide product:

AB800,5,7 1. If the applicant sells less than $25,000 of that product during the payment period for use in this state, $320.

AB800,5,9 2. If the applicant sells at least $25,000 but less than $75,000 of the product during the payment period for use in this state, $890.

AB800,5,12 3. If the applicant sells at least $75,000 of the product during the payment period for use in this state, $3,060 plus 0.2% of the gross revenues from sales of the product during the payment period for use in this state.

AB800, s. 8 Section 8. 94.681 (3) of the statutes is amended to read:

AB800,5,23 94.681 (3) Nonhousehold pesticides; cleanup surcharge. Except for the license years that begin on January 1, 1999, and January 1, 2000, an An applicant for a license under s. 94.68 shall pay an agricultural chemical cleanup surcharge for each nonhousehold pesticide product that the applicant sells or distributes for use in this state. The amount of the surcharge is based on sales of nonhousehold pesticide products during the payment period. An applicant shall pay an estimated surcharge before the start of each license year as provided in sub. (3s) (a) and shall make a surcharge adjustment payment before the end of the license year if required by sub. (3s) (b). Except as provided in sub. (6) or under s. 94.73 (15), the amount of the surcharge is as follows:

AB800,5,25 (a) If the applicant sold sells less than $25,000 of the product during the preceding year payment period for use in this state, $5.

AB800,6,2 (b) If the applicant sold sells at least $25,000 but less than $75,000 of that product during the preceding year payment period for use in this state, $170.