The deadline for submitting comments to the Department is 4:30 p.m. on April 12, 2006.
Analysis Prepared by the Department of Health and Family Services
The Department currently manages the cancer drug repository program under s.
255.056, Stats., and ch.
HFS 148, which allows pharmacies and medical facilities, including hospitals, and clinics or offices used by physicians to accept donated, unused cancer drugs and supplies for dispensation to eligible individuals.
2005 Wisconsin Act 16 expanded the cancer drug repository program effective January 1, 2006 to allow drugs and supplies for the treatment of chronic diseases to be donated and dispensed under the program. This expansion requires the Department to modify ch.
HFS 148, to reflect the changes made to s.
255.056, Stats.
Through this rulemaking order, the Department proposes to modify ch.
HFS 148 to insert the term “chronic disease" where appropriate. The Department also proposes to remove the alternative $15 handling fee prescribed under s.
HFS 148.08 to avoid any conflicts that may occur between this alternative amount and the Medicaid dispensing fee which is used as the basis of the handling fee amount that can be charged to persons eligible to receive drugs and supplies under the program.
Initial Regulatory Flexibility Analysis
The Department currently manages the cancer drug repository program under s.
255.056, Stats., and ch.
HFS 148, which allows pharmacies and medical facilities, including hospitals and clinics or offices used by physicians to elect to accept donated, unused cancer drugs and supplies for dispensation to eligible individuals.
2005 Wisconsin Act 16 expanded the cancer drug repository program effective January 1, 2006 to allow drugs and supplies for the treatment of chronic diseases to be donated and dispensed under the program. This expansion requires the Department to amend ch.
HFS 148, to reflect the changes made to s.
255.056, Stats.
Through this rulemaking order, the Department will modify ch.
HFS 148 to reflect the changes in s.
255.056, Stats. The Department also proposes to remove the alternative $15 handling fee prescribed under s.
HFS 148.08 to avoid any conflicts that may occur between this alternative amount and the Medicaid dispensing fee which is used as the basis of the handling fee amount that can be charged to users of the program.
The proposed expansion of the drug repository program will directly impact current and potential pharmacy or medical facility participants in the drug repository program, including those that meet the definition of small business under s.
227.114 (1), Stats. Sixteen pharmacies and no medical facilities currently participate in the cancer drug repository program. Analysis of the 2002 Economic Census (Wisconsin data) for the pharmacy industry (NAICS Code 44611), suggests that most of the pharmacies, including the current 16 pharmacy participants, are small businesses as defined under s.
227.114 (1), Stats. Medical facilities, as defined under s.
943.145, Stats., are hospitals, and clinics or offices of physicians licensed under ch.
448, Stats. An analysis of the 2002 Economic Census (Wisconsin data) for these facilities (NAICS Codes 6211- offices of physicians; 622 - hospitals; 621491- HMO medical centers; and 621493 - freestanding ambulatory surgical and emergency centers) suggests that the average facility does not meet the definition of small business under s.
227.114 (1), Stats.
Current participating entities (and potential participants) may incur additional costs for inspection, storage, dispensing, distribution, and destruction of expired donated drugs or supplies of the additional drugs and supplies. To cover these costs, entities may charge a handling fee that is up to 300% of the Medicaid dispensing fee (which is currently $4.38) or $13.14 per prescription. This amount is comparable to what non-participating pharmacies receive for prescription dispensing fees. A 2002 study commissioned by the Wisconsin Medicaid program found that in the year 2000, dispensing fees, which included the cost of packaging, labeling, computer systems, salaries, rent, utilities, etc., averaged between $6.95 and $7.35 per prescription with expected annual increases between 6 and 12 percent. Adjusting for cost increases, the Department determined that in 2005, dispensing fees could range from $9.30 to $11.56 per prescription.
If a participating entity chooses not to collect a handling fee, that entity will bear the costs of inspection, storage, dispensing, distribution, and destruction of expired donated drugs or supplies.
The proposed rules do not impose form requirements or requirements for reporting or recordkeeping, or performance, operational or design standards.
The expansion of the drug repository program to include chronic diseases drugs and supplies and amend the handling fee provision prescribed under s.
HFS 148.08, will not have a significant economic impact on current or potential pharmacy or medical facility participants in the drug repository program, including those that meet the definition of small business under s.
227.114 (1), Stats.
Small Business Regulatory Coordinator
Rosie Greer
608-266-1279
Fiscal Estimate
The proposed rules will not affect state or local government costs or have a significant economic impact on pharmacies or medical facilities. The proposed rules will affect only those pharmacies and medical facilities that elect to participate in the drug repository program, including those that meet the definition of small business under s.
227.114 (1), Stats.
Obtaining Copies of Rules and Fiscal Estimate
A copy of the full text of the rules and the fiscal estimate can be obtained at no charge from the Wisconsin Administrative Rules Website at
http://adminrules.wisconsin.gov or by contacting the contact person at the address given below.
Contact Person
Doug Englebert, R.Ph.
DHFS - Bureau of Quality Assurance
Room 950 1 West Wilson St.
Madison, WI 53711
Ph. 608-266-5388; Fax: 608-267-7119
Notice of Hearing
Regulation and Licensing
NOTICE IS HEREBY GIVEN that pursuant to ss.
227.11 (2) and
458.24, Stats., and interpreting ss.
458.24 and
458.26 (3) (b), Stats., and according to the procedure set forth in s.
227.16 (2) (e), Stats., the Department of Regulation and Licensing will adopt the following rules as proposed in this notice, without public hearing unless, within 30 days after publication of this notice, on
March 15, 2006, the Department of Regulation and Licensing 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.
Analysis prepared by the Department of Regulation and Licensing.
Explanation of agency authority
The Department of Regulation and Licensing is authorized under ss.
227.11 (2) and
458.24, Stats., to promulgate rules establishing the standards for appraisal practice for licensed and certified appraisers.
Related statute or rule: There are no related statutes or rules other than those listed above.
Plain language analysis: In this proposed rule-making order, the Department of Regulation and Licensing proposes to amend ch.
RL 87 Appendix I, which incorporates by reference the 2005 edition of the Uniform Standards of Professional Appraisal Practice (USPAP). Currently, the 2005 edition of USPAP states that the effective date of the publication is from January 1, 2005 to December 31, 2005. The department proposes to amend the rule to state that the effective date of the publication is from January 1, 2005 to June 30, 2006. The department also proposes to incorporate by reference the 2006 edition of USPAP.
SECTION 1. The department proposes to amend Appendix I, which incorporates by reference the 2005 edition of USPAP, to change the expiration date from December 31, 2005 to June 30, 2006. The department also proposes to amend Appendix I to incorporate by reference the 2006 edition of USPAP.
As required under s.
227.11, Stats, the department has obtained the consent of the attorney general and revisor of statutes to the incorporation of the 2005 and the 2006 editions of USPAP into the rules by reference.
Summary of, and comparison with, existing or federal regulation
The Federal Reform, Recovery, and Enforcement Act (“FIRREA"),
12 U.S.C. 3331 et seq., (Title XI) was enacted in 1989. Under FIRREA, insured financial institutions and insured credit unions are required to obtain the services of a state certified or licensed appraiser for appraisals conducted in connection with “federally related transactions."
The Appraisal Subcommittee of the Federal Financial Institutions Examination Council is authorized under FIRREA to monitor the requirements established by states for the certification and licensing of individuals who are qualified to perform appraisals in connection with federally related transactions.
21 USC 3333; Appraisal Subcommittee – Policy Statements Regarding State Certification and Licensing of Appraisers.
Under FIRREA, real estate appraisals performed in connection with federally related transactions are required to be performed in accordance with generally accepted appraisal standards as evidenced by the appraisal standards promulgated by the Appraisal Standards Board (ASB) of the Appraisal Foundation.
21 USC 3339; Appraisal Subcommittee – Policy Statements Regarding State Certification and Licensing of Appraisers, Statement 3.\
The appraisal standards promulgated by the ASB are contained in the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP is available on the Appraisal Foundation's website at:
http://www.appraisalfoundation.org.
Comparison with rules in adjacent states:
Under FIRREA, all states, including Illinois, Iowa, Michigan and Minnesota , must assure that certified appraisers comply with the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board. In Wisconsin, USPAP has been incorporated by reference in Appendix I to ch.
RL 87, Code. See also, s.
458.24, Stats.
Summary of factual data and analytical methodologies:
No study resulting in the collection of factual data was used relating to this rule. The primary methodology for revising the rule is the board's analysis and determination that a rule change is necessary.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report:
The proposed rule would change the standards for appraisal practice for licensed and certified appraisers licensed in Wisconsin. There are 1,940 licensed appraisers, 1,454 certified residential appraisers, and 1,375 certified general appraisers who are licensed in Wisconsin and would have to comply with the standards. Of the licensed appraisers in Wisconsin, a majority of them probably work in small businesses.
Under the Federal Reform, Recovery and Enforcement Act (FIRREA), all states must assure that certified appraisers comply with the Uniform Standards of Appraisal Practice that are promulgated by the Appraisal Standards Board. This will be the latest update of practice standards and will not have an effect on small business.
Section
227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Fiscal Estimate
The proposed rule will have no impact on the department's funds.
Anticipated costs incurred by private sector:
The department finds that this rule has no significant fiscal effect on the private sector.
Effect on small business:
These proposed rules will have no significant economic impact on small businesses, as defined in s.
227.114 (1), Stats. The Department's Regulatory Review Coordinator may be contacted by email at
larry.martin@drl.state.wi.us, or by calling (608) 266-8608.
Agency Contact
Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708-8935. Telephone: (608) 266-0495.
Place where comments are to be submitted and deadline for submission:
Comments may be submitted to Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708-8935; email
pamela.haack@drl.state.wi.us. Comments must be received on or before March 25, 2006 to be included in the record of rule-making proceedings.
TEXT OF RULE
SECTION 1. Ch.
RL 87, Appendix
I is amended to read:
APPENDIX I
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE
The 2005 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) is hereby incorporated by reference into this Appendix. The 2005 edition of USPAP is effective January 1, 2005 to December 31, 2005 June 30, 2006.
After January 1, 2005, copies of the 2005 edition of USPAP may be purchased from the Appraisal Standards Board of the Appraisal Foundation,
1029 Vermont Avenue 1155 15th Street, N.W., Suite
900 1111, Washington, D.C.
20005-3517 20005, and (202) 347-7722. After January 1, 2005, copies of the 2005 edition of USPAP may also be obtained, at no charge, from the Appraisal Foundation's website at
http://www.appraisalfoundation.org. The direct link to the electronic copy of the 2005 and prior year publications of the Uniform Standards of Professional Appraisal Practice is:
http://www.appraisalfoundation.org/html/standards.asp?FileName=current_uspap.
The 2006 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) is hereby incorporated by reference into this Appendix. The 2006 edition of USPAP is effective July 1, 2006 to December 31, 2007.
After July 1, 2006, copies of the 2006 edition of USPAP may be purchased from the Appraisal Standards Board of the Appraisal Foundation, 1155 15
th Street, N.W., Suite 1111, Washington, D.C., 20005, (202) 347-7722. After July 1, 2006, copies of the 2006 edition of USPAP may also be obtained, at no charge, from the Appraisal Foundation's website at:
http://www.appraisalfoundation.org.
Note: As required under s.
227.21, Stats., the attorney general and revisor of statutes have consented to the incorporation by reference of the 2005
edition
and the 2006 editions of the Uniform Standards of Professional Appraisal Practice.
After January 1, 2005, copies Copies of the 2005
edition and the 2006 editions of the USPAP will be on file in the offices of the department, the secretary of state and the revisor of statutes.
Notice of Hearing
Regulation and Licensing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in ss.
227.11 (2) and
480.08 (6), Stats., and interpreting s.
480.08 (5) and
(6), the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to repeal RL 128.03 (1) (c) and (d); and to amend RL 128.03 (1) (intro.), (a) and (b), the Note following RL 128.04 (1), the Note following RL 128.04 (1m) (e), and the Note following RL 128.04 (6) (b), relating to educational programs for auctioneers.
Hearing Date, Time and Location
Date: April 18, 2006
Time: 9:30 a.m.
Location: 1400 East Washington Avenue
Room 121A
Madison, Wisconsin
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to Pamela Haack, Paralegal, Department of Regulation and Licensing, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935, or by email at
pamela.haack@drl.state.wi.us. Comments must be received on or before April 28, 2006 to be included in the record of rule-making proceedings.
Analysis
Explanation of agency authority: The Department of Regulation and Licensing is authorized under s.
480.08 (6), Stats., to promulgate rules establishing requirements and procedures for registered auctioneers to complete continuing education programs or courses of study in order to qualify for renewal.
