Scope Statements
Agriculture, Trade and Consumer Protection
This Scope Statement was approved by the governor on January 9, 2012.
Rule No.
Relating to
Dairy Industry Promotion Grants and Loans
Description of the Objective of the Rule
The Department of Agriculture, Trade and Consumer Protection (DATCP) proposes an emergency and permanent rule that will establish criteria DATCP will use to make determinations for grants, loans or other forms of financial assistance to dairy producers to promote and develop the dairy industry. The emergency and permanent rules are necessitated by the addition of authority and general purpose revenue funding appropriated to the Department as part of
2011 Wis. Act 32, the Biennial Budget.
Description of Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
History and background. 2011 Wis. Act 32, eliminated the Department of Commerce and transferred the bulk of its responsibilities to the Wisconsin Economic Development Corporation (WEDC). Responsibilities not transferred to the WEDC were transferred to other state agencies, including DATCP. Those responsibilities transferred to DATCP included dairy promotion and development activities that had operated under the program umbrella called Dairy 2020. The budget act includes language amending DATCP's authority and creating an appropriation (see underlined text).
Section 375g. 20.115 (4) (d) of the statutes is created to read: 20.115 (4) (d) Dairy industry promotion. The amounts in the schedule for promoting the growth of the dairy industry by providing grants and loans to dairy producers.
Section 2299r. 93.40 (1) (g) of the statutes is amended to read:
93.40 (1) (g) Promote the growth of the dairy industry through research, planning, and assistance, including grants and loans to dairy producers.
The Legislative Fiscal Bureau's
Comparative Summary of Budget Recommendations for 2011 Act 32 states:
11. Transfer dairy 2020 and administration of agriculture related tax credits [LFB Paper 238]
Governor: Transfer from the Department of Commerce (Commerce) to DATCP administration of the following programs: (a) Dairy 2020, which assists dairy operations with accessing funding for expansions and modernization;……
The Dairy 2020 Initiative was created to focus resources available under several Commerce programs toward economic development in the state dairy industry. These programs include: (1) the early planning grant [EPG] program; and (2) the Milk Volume Production [MVP] program, which provides for low-interest loans to dairy farmers. Dairy 2020 is guided by an advisory Dairy 2020 Council, consisting of 26 gubernatorial appointees including dairy farmers, industry representatives, state legislators and officials and representatives of educational institutions.
The act does not transfer from Commerce to DATCP any statutory authorities for the Dairy 2020 financial assistance programs. Commerce and the Department of Administration (DOA) indicate that although Dairy 2020 coordinates dairy industry access to various programs, the programs themselves operate independently. The act repeals statutory authorities and state appropriations for these rural economic development programs.
Also, DATCP administers parts of the Dairy Business Initiative (DBI), which was previously known as the Value-Added Dairy Initiative (VADI). DBI/VADI has been supported by federal funding and in-kind efforts of DATCP, Commerce, the University of Wisconsin Center for Dairy Profitability, the UW–Extension, the Wisconsin Technical Colleges, and dairy industry trade groups. DBI/VADI is broadly intended to help the state dairy industry modernize and expand operations, as well as develop supply and distribution chains to economically increase product offerings and market presence of Wisconsin dairy products. Dairy 2020 has generally constituted the Commerce contributions to DBI/VADI operations……
Joint Finance/Legislature: Adopt the Governor's recommendation. In addition, include the following:
a. Transfer $200,000 GPR annually from the Wisconsin Economic Development Corporation (WEDC) to a newly-created GPR appropriation to fund grants and loans to dairy producers for promoting the growth of the dairy industry.
Nature of the Emergency
An emergency rule is necessary to ensure that funds are used to assist dairy producers during the first year of the annual appropriation as permanent rules cannot be adopted in time to provide the basis for grant determinations for that first year appropriation. The emergency is necessary for the welfare of those dairy producers who the Legislature has determined require assistance to maintain and expand their operations and for the welfare of the entire dairy industry. The emergency and permanent rules will have identical provisions.
Policy Alternatives
Do nothing. If DATCP fails to adopt rules that contain the basis for grant and loan determinations it will not be able to expend the funds and provide the assistance to dairy producers that the Legislature directed in
2011 Act 32, the biennial budget.
Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section
93.07 (1), Stats., directs DATCP to make such regulations as are necessary for the discharge of all the powers and duties of the department. While granting the authority to make grants and loans to dairy producers, the budget language does not specify the bases for grant and loan determinations. The agency considers it necessary to adopt rules needed to establish the bases for grant and loan determinations in order to effectuate the purposes of s.
20.114 (4) (d) and
93.40 (1) (g), Stats.
Estimate of the Amount of Time that State Employees will Spend to Develop the Rule and of Other Resources Necessary to Develop the Rule
DATCP estimates that it will use approximately 0.25 FTE staff to develop this rule. This includes time required for the investigation and analysis, financial assistance criteria, rule drafting, preparing related documents, holding public hearings and communicating with affected persons and groups. DATCP will use existing staff to develop this rule.
Description of all Entities that may be Impacted by the Rule
This rule will enable dairy producers to obtain financial assistance to expand, modernize, or improve the efficiency or profitability of their operations or who seek product, market or production process opportunities.
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 United States Department of Agriculture's Rural Development Agency Value Added Producer Grant Program offers funding for activities that expand markets or add value to agricultural products.
Anticipated Economic Impact
The proposed rule will enable DATCP to provide financial assistance to dairy producers who wish to expand, modernize, or improve the efficiency or profitability of their operations or who seek product, market or production process opportunities. DATCP expects the proposed rule to have a positive economic impact upon the dairy industry and to have no negative economic impact statewide and locally.
Contact Person
Agriculture, Trade and Consumer Protection
This statement of scope was approved for both the permanent and emergency rule proceedings by the governor on January 11, 2012.
Rule No.
Chapter
ATCP 55, Wis. Adm. Code (Existing)
Relating to
Meat and Meat Food Products
Description of the Objective of the Rule
The Department of Ag, Trade and Consumer Protection proposes emergency and non-emergency, permanent rule changes to incorporate federal regulations into Ch.
ATCP 55, Wis. Adm. Code, Meat and Meat Food Products. State meat inspection programs operate under contract with the United States Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS). State- inspected meat establishments may currently only sell their products within the state where they are located. These rule revisions would include adoption of the Cooperative Interstate Shipment (CIS) regulations and the regulations prescribing rules of practice that will allow selected Wisconsin state-inspected meat establishments to participate in interstate sales of their products.
Description of Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule and an Analysis of Policy Alternatives; the History, Background and Justification for the Proposed Rule
Background
Wisconsin operates the nation's largest state meat inspection program, with 286 official licensed establishments. Twenty-seven states currently operate state meat inspection programs. All state-inspected Wisconsin meat establishments are very small and fill an important niche in the state's economy. According to USDA, state meat inspection programs provide unique services to these small plants by “providing more personalized guidance to establishments in developing their food safety oriented operations." USDA provides half of the funding for state meat inspection programs.
State meat inspection programs operate under a cooperative agreement with USDA FSIS. Under this agreement, states must provide inspection services “at least equal to" federal meat inspection. Each program conducts a self-assessment annually and USDA FSIS conducts an on-site audit every three years to determine whether the program meets federal “at least equal to" requirements. Wisconsin meets these “at least equal to" standards.
Currently state-inspected meat establishments may only sell their products within the state where the plant is located. However, USDA recently finalized rules that will allow some selected state-inspected meat establishments to sell their meat and poultry products in other states. To qualify for this program, known as the Cooperative Interstate Shipment (CIS) program, states must provide inspection that is the “same as" (identical to) federal inspection. USDA will compensate states 60 percent of the cost of providing regulatory oversight at state-inspected meat establishments selected to participate in the CIS program.
ATCP 55, Meat and Meat Food Products
DATCP proposes revising existing administrative rules for Wisconsin's state meat inspection program found in Chapter
ATCP 55, Wis. Admin. Code, Meat and Meat Food Products. Chapter
ATCP 55 includes licensing and inspection requirements for state-inspected meat establishments and requires meat establishments that slaughter and process meat products to comply with relevant federal regulations and standards. It describes requirements for inspection marks, meat labeling, meat formula approval, and transportation. Finally, Chapter
ATCP 55 describes prohibited practices and the enforcement process for violations of the meat processing and slaughter regulations.
Proposed Rule Changes
The proposed rules will incorporate, by reference, federal regulations creating the CIS program and specifying rules of practice that ensure the state program operates the “same as" the federal program when overseeing plants selected for the CIS program. The proposed rules will, for consistency, adopt federal rules governing the maximum amount of meat products that can be sold at wholesale by retail food establishments without requiring a meat establishment license. DATCP seeks to develop both an emergency and a non-emergency, permanent rule.
Emergency Rule — The emergency rule will specifically incorporate federal regulations essential for implementing the CIS program. An emergency rule is necessary to ensure Wisconsin has the regulatory foundation required for participation in USDA's new CIS program allowing interstate sales of state-inspected meat products. The emergency rule is necessary to the welfare of very small meat establishments in Wisconsin because adopting the rule will ensure that selected state-inspected meat establishments may enter the CIS program and sell their products in other states.
Permanent Rule — In addition to the emergency rule, DATCP plans to begin work on a permanent, non-emergency rule immediately. The permanent rule will be identical in substance to the emergency rule and incorporate, by reference, federal regulations creating the CIS program. DATCP may also adopt any additional, non-emergency rules of practice needed to conform to federal regulations for participation in the CIS program.
Policy Alternatives
Do nothing. If the department does not incorporate rules for the CIS program and rules of FSIS practice, USDA FSIS may determine that Wisconsin cannot participate in the CIS program, thereby preventing expansion of market area for Wisconsin establishments seeking to increase their sales.
