Michigan does not require brokers to deposit client funds into interest-bearing trust accounts. The Michigan statutes say that a broker may deposit such funds into an interest-bearing account and that the interest accrued by this account should be handled according to the contract between the broker and the client.

Illinois

Illinois similarly does not require brokers to deposit client funds into interest-bearing trust accounts. On the contrary, Illinois requires that brokers deposit escrow funds, meaning earnest money and security deposits, in non-interest-bearing accounts except in cases where the principals specifically require otherwise. In the case of an interest-bearing account, the recipient of the interest must be specified in the contract between the principals.

8. Summary of Factual Data and Analytical Methodologies.

There were no factual data or analytical methodologies used to develop the proposed rules.

9. Analysis and Supporting Documents used to Determine Effect on Small Business or in Preparation of Economic Impact Report.

The proposed rules should have a minimal effect on small business. There were no supporting documents used to determine the effect on small business, and an economic impact report was not prepared.

SECTION 1. Comm 155.06 is repealed and recreated to read:

Comm 155.06 Statement. The information required under s. 452.13. (2) (e) 2., Stats., shall be submitted annually by February 1, for the previous calendar year, to the department on form CDH-10829. One report covering the aggregate accounts at a depository institution shall be submitted.

Note: Copies of form CDH-10829 are available at no charge from the Department of Commerce, PO Box 7970, Madison, WI 53707-7970, or by telephone at 608/266-8273, or on the Internet at www.commerce.wi.gov/CD.

The proposed rules and an analysis of the proposed rules are available on the Internet at the Housing and Community Development Division Web site at www.commerce.wi.gov/CD. Paper copies may be obtained without cost from Ronald Acker, at the Department of Commerce, Program Development Bureau, P.O. Box 2689, Madison, WI 53701-2689, or Email at racker@commerce.state.wi.us, or at telephone (608) 267-7907 or (608) 264-8777 (TTY). Copies will also be available at the public hearing.

1. Types of small businesses that will be affected by the rules.

The rules will affect any bank or lending institution that submits a statement and interest to the department under the interest bearing real estate trust account (IBRETA) funding program.

2. Reporting, bookkeeping and other procedures required for compliance with the rules.

The rules require the submittal of a statement and interest from an IBRETA to the department on a standardized form and by a specific date each year.

3. Types of professional skills necessary for compliance with the rules.

There are no types of professional skills necessary for compliance with the rules.

4. Rules have a significant economic impact on small businesses.

No

Rules not submitted to Small Business Regulatory Review Board.

Notice is hereby given that the Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.

The proposed rules have no effect on revenues or costs for state or local government in the administration and enforcement of chapter Comm 155.

The proposed rules hae no fiscal effect on the private sector.

The small business regulatory coordinator for the Department of Commerce is Carol Dunn, who may be contacted at telephone (608) 267-0297, or Email at cdunn@commerce.state.wi.us.

NOTICE IS HEREBY GIVEN That pursuant to Sections 38.50 (2), (3), (10) (c) 4. & (cm), and 227.11 (2), Wis. Stats., and interpreting Sections 38.50 (2), (3), (7) and (10), Wis. Stats., and according to the procedure set forth in s. 227.16 (2) (e), Wis. Stats., the Educational Approval Board (EAB) will adopt the following rule as proposed in this notice, without public hearing unless, within 30 days after publication of this notice December 15, 2005, the EAB is petitioned for a public hearing by 25 natural persons who will be affected by the rule; a municipality which will be affected by the rule; or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.

Rule Analysis

Under s. EAB 4.06, schools regulated by the EAB are assessed a student protection fee. The amount of the fee is currently based on a rate of $0.50 per $1,000 of adjusted gross annual school revenue as reported by the schools. These fees are deposited into an appropriation under s. 20.292 (2) (gm) and are used to indemnify certain persons suffering loss from such events as a catastrophic school closure.

This proposed rule would allow the EAB to assess a student protection fee at a rate the board determines necessary to protect the viability of the appropriation, not to exceed an amount of $10,000 for any individual school and only if the balance is less than $500,000. The EAB has expressed concern about being able to fulfill its statutory obligation of protecting students in the event of a catastrophic school closure.

Because the fund balance is currently less than $500,000, the proposed rule would give the EAB the authority to assess a fee at a rate higher than the current rate of $0.50 per $1,000. However, the rule does not require the board to assess the higher rate, and once the fund balance is in excess of $500,000, the board would be specifically prohibited from assessing a higher fee. In addition, the EAB would be limited in assessing any individual school a student protection fee that exceeds $10,000.

Text of Rule

SECTION 1. EAB 4.06 (2)(b) is amended to read:

EAB 4.06 (2)( b) The fee shall be based on a rate of $0.50 per $1,000 of adjusted gross annual school revenue as reported in accordance with ss. EAB 4.01 (4) and 4.10 (2) (d), or if the appropriation balance of s.20.292 (2)(gm) is less than $500,000, a fee determined by the board to protect the viability of the appropriation under s.20.292 (2)(gm), but not to exceed $10,000 for an individual school.

The potential impact of this rule on small businesses is limited to the extent that such businesses meet the statutory definition of a school and are subject to the EAB approval. The EAB currently approves 140 for-profit and non-profit postsecondary schools. These schools consist of technical, career, distance-learning, and degree-granting institutions that offer more than 600 degree and non-degree programs to over 30,000 Wisconsin adults annually. Typical programs includes truck driving, massage therapy, home inspection, teacher licensure, IT certifications, CAD drafting, as well as traditional bachelor and master degrees.

At the present time, the student protection fund appropriation contains $79,582. Based on reported school revenues for the 2006 renewal year, it is estimated that the FY 06 fund balance will increase to approximately $141,300 as a result of the standard fee assessment. This increase is based on total reported school revenues of approximately $123.5 million.

In addition, provisions contained in the 2005-07 biennial budget (2005 Wisconsin Act 25) will transfer $250,000 of retained earnings from the EAB's general operating budget into the appropriation on June 30, 2006. After the transfer, the estimated balance for the student protection fund will be $391,300.

Because of the permissive nature of the proposed rule order, it is not possible to determine the fiscal effect. Based on a FY 06 fund balance of $391,300, the EAB would not be able to assess more than $108,700 before the $500,000 cap is reached. However, the EAB has indicated that its primary intent is to address a situation in which the balance falls below the $500,000 due to a catastrophic school closure. In addition, no one school could be assessed more than $10,000. To gain some insight about how the proposal might affect an individual school, one should consider the student protection fees assessed in 2005 totaled $55,746, ranging from no fee to $9,941. While the average fee was $446, the median fee was only $58.

Questions and requests for copies of the proposed rule should be directed to:

David C. Dies

Educational Approval Board

30 W. Mifflin Street, 9th Floor

P.O. Box 8696

Madison, Wisconsin 53708

608/266-1996

Notice is hereby given that pursuant to the authority granted under s. 601.41 (3), Stats., and the procedures set forth in under s. 227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting ch. Ins 6, Wis. Adm. Code, relating to agent's licensing procedure changes which will affect small business.

Date: January 11, 2006

Time: 10:00 a.m., or as soon thereafter as the matter may be reached

Place: OCI, Room 227, 125 South Webster St 2nd Floor, Madison, WI

Written comments or comments submitted through the Wisconsin Administrative Rule website at:
http://adminrules.wisconsin.gov on the proposed rule will be considered. The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in this Notice of Hearing.

Written comments should be sent to:

Robert Luck

Legal Unit - OCI Rule Comment for Rule Ins 6

Office of the Commissioner of Insurance

PO Box 7873

Madison WI 53707-7873

For a summary of the rule see the analysis. There will be a state or local government fiscal effect. The full text of the proposed changes, a summary of the changes and the fiscal estimate are available at the OCI website (see below).

Notice is hereby further given that pursuant to s. 227.114, Stats., the proposed rule may have an effect on small businesses. The initial regulatory flexibility analysis is as follows:

a. Types of small businesses affected:

Insurance agents

b. Description of reporting and bookkeeping procedures required:

None beyond those currently required.

c. Description of professional skills required:

None beyond those currently required.

The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266- 7843 or at email address Eileen.Mallow@oci.state.wi.us

A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet WEB site at http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Services Section, OCI, at: Inger.Williams@OCI.State.WI.US, (608) 264-8110, 125 South Webster Street – 2nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.

Analysis Prepared by the Office of the Commissioner of Insurance (OCI)

1. Statutes interpreted: ss. 600.01 and 628.04, Stats.

2. Statutory authority: ss. 601.31 (m), 601.41 (3), 601.42, 628.04, 628.10 and 628.11, Stats.

Note: OCI is submitting a Technical Bill that changes the procedure for licensees that don't pay fees or complete continuing education requirements and the relaxed reinstatement requirements. If this bill has not been signed into law prior to OCI submitting the rule to the legislature, OCI will modify the procedures to conform to existing law and the existing rule. The billing and CE due dates will change regardless of whether the Technical bill is enacted.

3. Explanation of the OCI's authority to promulgate the proposed rule under these statutes:

These statutes permit the commissioner of insurance to set standards by for prelicensing education, continuing education, agent fees and other procedural requirements of licensing. These changes change the existing procedures which have been in effect for many years. They do not attempt to extend the commissioner's authority to areas not previously regulated by the existing rules.

See the Note in item #2 above relating to the OCI Technical bill.