The hearing sites are fully accessible to people with disabilities. If you require reasonable accommodation to access any meeting, please call Lori Slauson, at (608) 267-9127 or leave a message with the Teletypewriter (TTY) at (608) 267-2427 at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.

The administrative rule is available on the internet at http://www.dpi.state.wi.us/dpi/dfm/pb/schstart.html. A copy of the proposed rule and the fiscal estimate may be obtained by sending an email request to lori.slauson@dpi.state.wi.us or by writing to:

Lori Slauson

Administrative Rules and Federal Grants Coordinator

Department of Public Instruction

125 South Webster Street

P.O. Box 7841

Madison, WI 53707

Written comments on the proposed rules received by Ms. Slauson at the above email or street address no later than January 9, 2002, will be given the same consideration as testimony presented at the hearing.

2001 Wis. Act 16 requires school boards to start a school term after September 1 unless a school board submits a request to the Department of Public Instruction stating the reasons it would like the school term to start earlier. The department may grant a request only if it determines there are extraordinary reasons for granting it.

The department is required to promulgate rules to implement and administer this provision. The rules establish a procedure for school boards to use in requesting an earlier start date and gives examples of extraordinary reasons for granting such requests.

The proposed creation of Chapter PI 27, rules relating to the commencement of a school term, is a result of statutory changes made under 2001 Wisconsin Act 16. The rules will not have a fiscal effect separate from the statutory changes made under the Act. The Act modified s. 118.045, Stats., requiring school boards to start a school term after September 1 unless a school board submits a request to the department stating the reasons it would like the school term to start earlier. The department may grant a request only if it determines there are extraordinary reasons for granting it.

By law, school districts must provide 180 days of instruction. By starting school later, school districts will likely have to make up days by having shorter winter or spring breaks, or by extending the school year later into summer. If school is conducted during Thanksgiving or winter break when schools would normally be vacant, heating and electrical costs may increase. These costs are indeterminate.

Additionally, current law requires school districts to provide transportation for pupils in private schools. If private schools choose to begin the school year prior to September 1, transportation costs may increase if school districts are required to run additional bus lines or otherwise accommodate the transportation needs of private school pupils when public school is not in session. For example, one public school district has 40 percent of its elementary student population in private or parochial schools. The business manager of the public district estimated that if the private schools chose to start school prior to September 1, it would cost the school district an additional $5,000 to $6,000 per day in transportation costs. The private schools started on August 26 in 2001. If the new legislation would have been in effect this year, it would have cost the public school district $25,000 to $30,000. It should be noted that excessive private school transportation costs are listed in the rule as an extraordinary reason to allow a school to begin a school term prior to September 1.

It is assumed this rule will have no state fiscal effect. These rules may affect small businesses. However, any costs or benefits will vary on a case-by-case basis depending on when such businesses need to employ pupils (at the beginning or end of summer).

NOTICE IS HEREBY GIVEN that pursuant to ss. 16.004 (1) and 16.25 (2), (3), (4) and (5), Stats., and interpreting s. 16.25 et seq., Stats., the Department of Administration on behalf of the Volunteer Fire Fighter and Emergency Medical Technician Service Award Board, will hold a public hearing on both the Board's emergency rulemaking order and proposed permanent order creating Chapter VFF-EMT 1 of the Wisconsin Administrative Code, relating to the creation of a length of service award program for volunteer fire fighters and emergency medical technicians.

  Administration Building

    101 East Wilson Street, 1st Floor

    Madison, WI 53702

The hearing is being held in an accessible facility. Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are also urged to submit facts, opinions and arguments in writing as well. Written comments from persons unable to attend the public hearing, or who wish to supplement testimony offered at the hearing, should be directed to: Donna Sorenson, Department of Administration, P.O. Box 7964, Madison, WI 53707-7864. Written comments must be received by January 7, 2002, to be included in the rule-making proceedings.

The Volunteer Fire Fighter and Emergency Medical Technician Service Award Board propose an order to create Chapter VFF-EMT 1 of the Wisconsin Administrative Code.

Statutory authority: ss. 16.004 (1) and 16.25 (2), (3), (4) and (5), Stats.

Statutes interpreted: s. 16.25 et seq., Stats.

Pursuant to section 16.25 (2) through (5), Stats., the Volunteer Fire Fighter and Emergency Medical Technician Service Award Board (“Board") is required to establish by rule a program (“Length of Service Awards Program" or “Program") to provide length of service awards, as described in 26 USC 457 (e)(11), to volunteer firefighters (“VFF") and municipalities that operate volunteer fire departments or contract with volunteer fire companies, and to volunteer emergency medical technicians (“EMT"). To the extent permitted by federal law, the Program is to be designed to treat length of service awards as a tax-deferred benefit under the Internal Revenue Code. The rules are to include design features for the Program, the requirements for and the qualifications of private sector entities that are eligible to provide administrative services and investment plans under the Program, and an appeal. Significant features of the rule are addressed below:

Section VFF-EMT 1.04 describes eligibility requirements for municipalities wishing to participate in the program, such as adopting a resolution or ordinance authorizing participation, developing standards for determining the service required of the individuals it sponsors in order to qualify for municipal contributions and providing for circumstances where municipalities wish to jointly operate, or contract with, the same volunteer fire department or volunteer fire company.

Section VFF-EMT 1.05 sets forth requirements and procedures for municipal contributions made on behalf of eligible volunteers, and for the state's matching contribution (up to $250 per eligible individual annually).

Section VFF-EMT 1.06 sets forth the parameters for municipal contributions for prior service rendered before the municipality began participating in the Program. The minimum contribution for prior service is set at $100, and those contributions may spread over a number of years. A separate accounting is required for these prior service payments.

Section VFF-EMT 1.07 sets forth the Program's vesting requirements and the various permutations possible between full and partial vesting periods and the minimum age requirement (age 60) for payout. Section VFF-EMT 1.07 (1) establishes that 20 years service is required to fully vest and, upon reaching age 60, the award must be paid. (This requirement insures that the benefit maintains its tax deferred status.) Section VFF-EMT 1.07 (2) provides that a fully vested individual age 60 or older may continue to provide service toward a new length of service award under a new account but, for IRS rule purposes, contributions must be paid immediately and cannot accumulate. Section VFF-EMT 1.07 (3) provides for partial vesting after 10 years' service. Should the individual perform more than 10 but less than 20 years' service, upon reaching age 60, he or she will receive only 50% of the net asset value of the benefit account for the first 10 years of service rendered, and an additional 5% for each year thereafter, up to 19 years. Section VFF-EMT 1.07 (7) allows an individual to provide simultaneous service to two or more separate municipalities but, in such cases, only one year of service credit may be earned.

Section VFF-EMT 1.09 details the notice and procedure for when a VFF-EMT ceases performing service for one participating municipality and begins performing service for another municipality, which utilizes a different program administrator or vendor. Such a transfer is allowed, but the account will be frozen and a new one started with the new program administrator. However, any accumulated years of credited service will continue to count toward the vesting requirements. Section VFF-EMT 1.10 allows for benefits to be received both upon disability, or to the beneficiaries upon death of the VFF-EMT.

Section VFF-EMT 1.12 sets forth minimum program administrator qualifications. These include five years of experience providing a length of service award program, adequate marketing and enrollment services capabilities, various accounting and record keeping procedures and abilities, membership in good standing in various organizations customary in the program administrator's or investment manager's industry that provides protection against loss, and overall financial strength.

Section VFF-EMT 1.13 provides for the administration of plans offered by a program administrator under a contract with the Board, and standard provisions to be included. These include compliance with all pertinent state and federal statutes, rules and regulations, mandatory full disclosure to the Board of all fees and commissions earned directly and indirectly on the operations of the program, audits, and data processing system failure and administrative service interruption contingency plans. Also important are the required annual statements to participating municipalities and the individuals they sponsor, detailing all contributions made and the fees commissions, and charges paid that affect the individual's account.

Section VFF-EMT 1.17 provides for a two-step appeals process in which a VFF-EMT may first protest service credit issues to the participating municipality, which may consult with the program administrator. Any decision of the municipality may be reviewed at the Board's discretion. An individual who has a substantial interest affected by a Board decision may appeal directly in writing to the Board. All Board decisions are final.

TEXT OF RULE:

SECTION 1: Ch. VFF-EMT 1 is created to read:

VFF-EMT 1

VOLUNTEER FIRE FIGHTER-EMERGENCY MEDICAL TECHNICIAN SERVICE AWARD BOARD ADMINISTRATIVE RULE

VFF-EMT 1.01 Authority. Sections 16.004 (1), and 16.25 (2), (3), (4) and (5), Stats., authorize the Board to promulgate rules for establishing a length of service award program for volunteer fire fighters and emergency medical technicians.

VFF-EMT 1.02 Purpose. The purposes are to establish a program for length of service awards to VFF-EMT participants who provide services to municipalities that operate volunteer fire departments or volunteer fire companies, or authorize emergency medical and technical services, and to establish qualifications and requirements for private sector individuals and organizations eligible to provide administrative and investment services for length of service award programs.

VFF-EMT 1.03 Definitions. In this chapter:

(1) “Account" means a statement or record of all state and municipal length of service award contributions, including all applicable earnings, redistributions and deductions made on behalf of a VFF-EMT maintained by a program administrator.

(2) “Beneficiary" means a person, trust or entity designated by a VFF-EMT to receive benefits under a program.

(3) “Board" has the meaning specified in s. 16.25 (1) (a), Stats.

(4) “Credit" means the recognition of the fulfillment of the requirements for performing service toward a length of service award under the program.

(5) “Emergency medical services" means medical care that is rendered to a sick, disabled or injured individual based on signs, symptoms or complaints, prior to the individual's hospitalization or while transporting the individual between health care facilities and that is limited to the use of the knowledge, skills and techniques received from training required under s. 146.50, Stats., and chs. HFS 110, 111, 112 or 113, as a condition for being issued an emergency medical technician license.

(6) “Fire fighting services" means the organized suppression and prevention of fires.

(7) “Fiscal year" means the period beginning on July 1 and ending on June 30.

(8) “Length of service award program" or “program" means a program as described in section 457 of the internal revenue code that is implemented and administered by a program administrator approved by the board, and that to the extent allowed by federal law, provides a tax-deferred benefit to an eligible VFF-EMT consistent with the internal revenue code, s. 16.25 Stats., and this chapter.

(9) “Municipality" has the meaning specified in s. 16.25 (1) (c), Stats.

(10) “Net asset value" means the value of an individual length of service award determined by adding the municipal contributions and the state matching contributions, all earnings thereon, and any redistributions as provided in s. VFF-EMT 1.08, less investment expenses.

(11) “Participating municipality" means a municipality that meets the program eligibility requirements of s. VFF-EMT 1.04 and elects to participate in a program.

(12) “Prior service" means the service performed by a VFF-EMT for a participating municipality before that municipality began participation in a program.

(13) “Program administrator" means a non-governmental individual or organization in the private sector that provides and administers a program.

(14) “Service" includes fire fighting, emergency medical, or rescue services provided to a participating municipality by a volunteer fire fighter or volunteer emergency medical technician.

(15) “State" means the state of Wisconsin.

(16) “Volunteer emergency medical technician" or “EMT" means all emergency medical service personnel, including first responders, licensed or certified under s. 146.50, Stats. (17) “Volunteer fire company" means one that is organized under s. 213.05, Stats.

(18) “Volunteer fire department" has the meaning specified in s. 213.08, Stats.

(19) “Volunteer fire fighter" or “VFF" means a person that renders fire fighting or rescue services to a participating municipality and does not receive compensation under a contract of employment as a fire fighter.

(20) “VFF-EMT" means a volunteer fire fighter or emergency medical technician.

VFF-EMT 1.04 Participating Municipalities. (1) A municipality that operates a volunteer fire department or that contracts with a volunteer fire company organized under Ch. 181 or 213, or that authorizes volunteer emergency medical technicians to provide emergency medical services, is eligible to become a participating municipality.

(2) An eligible municipality may participate in a program by adopting a resolution or ordinance stating that it shall abide by all statutes, administrative rules, regulations and procedures pertaining to a length of service award program. The adopted resolution or ordinance shall be on a form approved by the board and provided to the program administrator or the board upon request.

Note: To request approval of a form for a resolution or ordinance, contact the Length of Service Award Program, c/o Department of Administration, Office of Legal Counsel, P.O. Box 7864, Madison, Wisconsin 53707-7864 or (608) 266-9810.

(3) Each participating municipality shall develop standards for determining the service required of the volunteer fire fighters and emergency medical technicians it sponsors under the program in order to qualify for an annual contribution.

(4) Municipalities that jointly operate or contract with a volunteer fire department or a volunteer fire company or that jointly authorize volunteer emergency medical technicians, may operate as a single participating municipality under the program, and may be required to do so by the program administrator.

(5) (a) A VFF-EMT may perform service for credit toward a length of service award to more than one volunteer fire department, volunteer fire company or entity authorized to provide volunteer emergency medical services.

(b) A VFF-EMT may have only one account for each volunteer fire department, volunteer fire company or entity authorized to provide volunteer emergency medical services to which the VFF-EMT provides service.

VFF-EMT 1.05 Contributions to a program. (1) MUNICIPAL CONTRIBUTIONS. A participating municipality shall determine the amount it will contribute on behalf of each VFF-EMT it sponsors under a program. A participating municipality shall cause an account to be opened with the program administrator for each sponsored VFF-EMT. A participating municipality's contributions shall be paid at least annually to the program administrator or designee.

(2) MATCHING CONTRIBUTIONS. (a) On a calendar year basis, the board shall match a participating municipality's annual contributions made on behalf of its VFF-EMT participants during that calendar year up to a maximum of $250 per eligible VFF-EMT, subject to any annual adjustment under sub. (3). The board shall pay all amounts matched under this section directly to the program administrator or designee, up to a maximum of $2,000,000 in a fiscal year.

(b) Subject to the time period for a protest or appeal under s. VFF-EMT 1. 17, a participating municipality shall pay all contributions for a calendar year to the program administrator or designee on or before January 31 of the following year in order to receive a matching contribution from the board.