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.

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.

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.

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.

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.

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.

Linda Merriman Hitchman, DATCP; Phone (608) 224-5132, linda.merrimanhitchman@wisconsin.gov.

This statement of scope was approved for both the permanent and emergency rule proceedings by the governor on January 11, 2012.

Chapter ATCP 55, Wis. Adm. Code (Existing)

Meat and Meat Food Products

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.

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.

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.

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.

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.

Statutory authority for revising this rule may be found in sections 93.07 (1), 97.09 (4), and 97.42 (4), Stats., as follows:

DATCP estimates that it will use approximately 0.1 FTE staff to develop this rule. That includes time required for investigation and analysis, rule drafting, preparing related documents, coordinating advisory committee meetings, holding public hearings and communicating with affected persons and groups. DATCP will use existing staff to develop this rule.

These rule changes would impact small and very small state-inspected meat establishments that wish to sell their meat or poultry products in other states. Approximately thirty establishments have expressed interest in participating in the CIS program.

The Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA) require federal inspection to ensure all meat and poultry products are safe, wholesome, and accurately labeled. Section 661 of the FMIA and 454 of the PPIA allows FSIS to develop cooperative agreements with states to administer state meat inspection programs. Section 11015 of Title XI of the Food, Conservation, and Energy Act of 2008 (farm bill) amended the acts and established the new CIS program allowing certain state-inspected establishments to sell products in interstate commerce. USDA released the final rules for the CIS program in May 2011. These federal regulations are found in 9 CFR Parts 321, 332, and 381. Wisconsin's administrative rules do not currently incorporate these new regulations, which are needed to implement CIS.

DATCP expects the proposed rule to have no negative economic impact statewide and locally. Since state-inspected meat establishments are already inspected, rule revisions should result in no to minimal costs to establishments who choose to participate in this voluntary program, and participating establishments would be expected to experience a positive economic impact due to sales over a larger geographic region. The rule changes will have no economic impact on local governmental units or public utility taxpayers.

Sandra Cleveland, Division of Food Safety, DATCP; phone (608) 224-4670

This statement of scope was approved by the governor on January 4, 2012.

Agency No. 145 – Chapter Ins 17.01 and 17.28 (6)

Injured Patients and Families Compensation Fund Annual Fund Fees and Mediation Panel Fees for fiscal year 2013.

The Office of the Commissioner of Insurance's objective is to establish the annual fees that participating health care providers must pay to the Injured Patients and Families Compensation Fund as required by s. 655.57 (3), Wis. Stat., for the fiscal year beginning July 1, 2012. The proposed rule will also establish the mediation panel fees for fiscal year 2013 commencing on July 1, 2012.

The policies as set forth in the statutes require the Office of the Commissioner of Insurance to promulgate a rule to establish the amount of fees to be paid into the Fund annually as approved by the Board of Governor's of the Injured Patients and Families Compensation Fund. The fees include the annual assessments for the coverage provided to the participating health care providers, and the mediation fund fees which are collected by the Injured Patients and Families Compensation Fund and paid to the Director of State Courts for the operations of the Medical Mediation Panels.

The Injured Patients and Families Compensation Fund was established by and operated under Chapter 655, Wis. Stat. Section 655.004 states that the director of state courts and the Commissioner may promulgate such rules under ch. 227, Wis. Stat., as are necessary to enable them to perform their responsibilities under this chapter. Pursuant to s. 655.27 (3) (b), Wis. Stat., the Commissioner, after approval by the board of governors, shall by rule set the fees, and s. 655.61, Wis. Stat., requires that the board of governors, by rule, set fees to charge health care providers a level sufficient to provide the necessary revenue to fund the medical mediation panels. Further, section 601.41 (3), Wis. Stat., provides that the Commissioner shall have rule-making authority under s. 227.11 (2), Wis. Stat.

120 hours of time including the time of state employees and of the Board of Governors of the Injured Patients and Families Compensation Fund.

All health care provider participants in the Fund as set forth in s. 655.002 (1), Wis. Stat., will be required to pay an additional 5% assessment for their medical malpractice coverage under Chapter 655 Wis. Stat. This impact is considered to be minimal in that the majority of the Fund's participants are physicians and the majority of the physicians are assessed fees in the Class 1 and Class 2 categories. The 5% increase in annual Fund fees will result in an additional $73 and $131 for Class 1 and Class 2 physicians, respectively, for fiscal year 2013.

There is no existing or proposed federal regulation addressing any medical malpractice fund like the Wisconsin Injured Patients and Families Compensation Fund.

The Fund issues invoices for the next fiscal year in June of each year. In order for the invoices to correctly reflect the assessment increase approved by the Board of Governors, a rule must be promulgated and take effect prior to June 2nd. Due to the length of time that may be required to promulgate the rule, the scope is being submitted for both the permanent rule and an emergency rule to ensure that procedures are in place to promulgate the rule on an emergency basis to ensure that the invoices can be issued reflecting the assessments approved by the Board of Governors.

Theresa L Wedekind, 608-266-0953.

This statement of scope was approved by the governor on January 13, 2012.

Chapter Trans 265 (Create)

Annual or consecutive month permits for vehicles or combinations of vehicles transporting hay or straw that exceed the height limitation designated in s. 348.06, Stats., providing an exemption from emergency rule procedures, and granting rule-making authority.

This emergency rule and proposed permanent rule will implement sections 348.25 (3), 348.25 (4) (intro.), 348.27 (1), 348.28 (1), and 348.27 (16), Stats., which were amended and created by 2011 Wisconsin Act 58. The law creates an annual or consecutive month permit for vehicles and vehicle combinations transporting loads of hay or straw that exceed the height limitations designated in s. 348.06, Stats., grants rule-making authority, and provides an exemption from some emergency rule procedures. The law establishes conditions for the permit and limitations on operation. The law designates DOT as the issuing authority for this permit. All applications under sec. 348.27 (16) shall be made utilizing an electronic process prescribed by the department. The rule will: 1) define “urban area" and shall provide information to the permit holders as to the meaning of this term with each permit issued under this subsection, 2) prescribe the electronic application procedure, 3) establish parameters for how loads of hay and straw are to be secured for safe travel, 4) set forth guidance for written approval by local road authorities, 5) specify the number of business days within which permit applications will be reviewed, 6) establish reasonable conditions prerequisite for granting this permit; establish reasonable conditions for operation under this permit; establish reasonable conditions necessary for safe travel and protection of the highways; establish any additional reasonable conditions necessary, in view of statewide or local conditions.

This emergency rule and proposed permanent rule will implement 2011 Wisconsin Act 58. Prior to the passage of 2011 Wisconsin Act 58, loads of hay and straw were not eligible for over height permits because the loads were divisible. 2011 Wisconsin Act 58 allows DOT to issue over height permits for loads of hay or straw that exceed the statutory height limit of 13.5 feet, but do not exceed 14.5 feet in urban areas, or 15 feet on any other highway. 2011 Wisconsin Act 58 will allow over height loads of hay or straw to be transported on Interstate highways.

Executive Order #50 explains that an economic impact analysis is not required when an agency promulgates an emergency rule (General Provisions I.5 and Economic Impact Analysis IV. 1)