Clarify the administration and enforcement requirements relating to issuance of certificates, waivers, stipulations and satisfaction of compliance. [Comm 67.06]

Clarify the 2-year time period granted for a waiver starts from the date the waiver is validated, and include a requirement that states a rental unit with an expired waiver may not be transferred. [Comm 67.06 (3) (b) 2.]

Clarify that an owner of a rental unit must bring the unit into compliance with the energy requirements no later than one year after the stipulation was validated. [Comm 67.06 (4) (a) 1.]

Clarify the stipulation requirements, and include an option that the owner may bring the rental unit into compliance using either the code in effect at the time the stipulation was issued or using the current code requirements. [Comm 67.07 (2) (b) 2. and 67.06 (4) (a) 3.]

Reword the issuance requirements for certificates of compliance and stipulations to include the filing requirements previously covered under section Comm 67.08 (4) (g). [Comm 67.06 (2) and (4)]

Clarify the rules relating to insulation of box sills to permit foam plastic insulation to be used without the required thermal barrier. [Comm 67.11 (1) (c) and Table 67.11-B]

Clarify the rules relating to insulation of ducts and pipes to include vented attic spaces. Change the requirements relating to domestic hot water pipes to domestic water heater pipes, and require the insulation of only the supply pipes for noncirculating hot and cold water pipes in vented crawl spaces. [Comm 67.11 (1) (d) and Table 67.11-3]

6. Summary of, and Comparison with, Existing or Proposed Federal Regulations.

An Internet-based search for “energy efficiency standards for rental dwelling units" in the Code of Federal Regulations (CFR) did not identify any existing federal regulations establishing energy efficiency requirements for the transfer of dwelling units used as rental property. However, it did identify the following existing federal regulation that awards grants to provide a weatherization assistance program to increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential expenditures, and improve their health and safety.

10 CFR 440 – Weatherization Assistance for Low-income Persons

An Internet-based search for the referenced federal regulation of the 2003, 2004 and 2005 issues of the Federal Register did not identify any proposed changes to this regulation relating to the weatherization of dwellings owned by or occupied by low-income persons.

7. Comparison with Rules in Adjacent States.

An Internet-based search of adjacent states' codes resulted in finding no similar code requirements for providing energy efficiency standards prior to the transfer of ownership of rental property. Minnesota, Michigan, and Iowa have energy conservation requirements for both commercial and residential buildings; however, these states do not require mandatory compliance with energy efficiency standards in existing rental units changing ownership.

Illinois does not have a statewide building code covering energy efficiency standards in rental units. In Illinois enactment of building codes is at the local municipal level.

8. Summary of Factual Data and Analytical Methodologies.

In accordance with s. 101.122 (2) (e), Stats., the Department is required to review the rental unit energy efficiency rules every 5 years to determine whether there are any new energy conservation technologies that would impact these rules. In developing the proposed rules, the Department reviewed the current rental unit energy conservation requirements along with the energy requirements specified under chapter Comm 22, Energy Conservation of the Uniform Dwelling Code (UDC) and the latest requirements under the International Energy Conservation Code (IECC) and did not find any new technologies. The Department's review and assessment process involved the participation of an advisory council. The members of the Rental Unit Energy Efficiency Code Council represented home inspectors, realtor's association and apartment owners. (A listing of the Council members is provided at the end of this analysis.)

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

The rental unit energy efficiency rules impact any small business providing inspection services for compliance and any small business owning rental property that is proposed to be sold or transferred to a new owner where the rules under this chapter have not been applied prior to the transfer.

The Department believes the proposed rules would have no additional economic impact on the identified affected small business because no new technologies were identified and the existing technical rules were only clarified to improve enforcement and application. The administrative rules were also clarified to improve application and no additional reporting or bookkeeping requirements were developed. The cost to provide the additional insulation for ducts and pipes will have a minimal effect on small businesses. The fees for a stipulation and a waiver have been eliminated and the fee for a certification authorization stamp has been increased, and it is believed this change will provide cost savings to small businesses affected by these rules. An economic impact report as specified under s. 227.137, Stats has not been prepared.

10. Effect on Small Business

The proposed rules should have a minimal effect on small business.

Council Members and Representation

The proposed rules were developed with the assistance from the Rental Unit Energy Efficiency Advisory Council. The members of that citizen advisory Council are as follows:

The proposed rules and an analysis of the proposed rules are available on the Internet at the Safety and Buildings Division Web site at www.commerce.wi.gov/SB/. Paper copies may be obtained without cost from Roberta Ward, at the Department of Commerce, Program Development Bureau, P.O. Box 2689, Madison, WI 53701-2689, or Email at roberta.ward@wisconsin.gov, or at telephone (608) 266-8741 or (608) 264-8777 (TTY). Copies will also be available at the public hearing.

Notice is hereby given that the Department has prepared a preliminary Environmental Assessment (EA) on the proposed rules. The preliminary recommendation is a finding of no significant impact. Copies of the preliminary EA are available from the Department on request and will be available at the public hearings. Requests for the EA and comments on the EA should be directed to:

Joe Hertel

Division of Safety and Buildings

Department of Commerce

P.O. Box 2689

Madison, Wisconsin 53701

Telephone (608) 266-5649

or TTY (608) 264-8777

Written comments will be accepted until march 29, 2007.

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

Any small business providing inspection services for compliance with the rental unit energy efficiency standards, and any small business owning rental property under the scope of these rules will be affected.

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

The proposed rules have no additional reporting or bookkeeping requirements.

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

No new skills are required.

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

No. Rules not submitted to Small Business Regulatory Review Board.

State Effect

The Safety and Buildings Division is responsible for administering and enforcing chapter Comm 67 relating to rental unit energy efficiency standards. The proposed rules change the Division's fees charged for administering and enforcing chapter Comm 67 by eliminating the $25 fee for an application exemption and the $50 fee charged for each stipulation and waiver issued by the Division. By eliminating the stipulation and waiver fees, the Division's internal fiscal processing would also be improved by eliminating the need to send rebates to the 61 local authorized agents who submit these fees to the agency.

The certification stamp fee will be raised from $20 to $30. While there will be a fiscal impact, the proposed rules will not create any additional workload costs.

Local Effect

Local municipalities authorized by the Department to issue certificates of compliance may enforce these rules, and will have the authority to offset any costs by charging appropriate fees.

Private Sector Effect

The provisions in chapter Comm 67 are to establish minimum energy efficiency standards for rental units that must be met before the ownership of a rental unit is transferred. The intent of the rules is to ensure that rental units in Wisconsin are constructed and maintained as to promote efficient energy use. The proposed changes are primarily to rules relating to administration and enforcement procedures; however, there are changes that will require the insulation of ducts and pipes located in vented attic spaces. It is assumed that for such rental units, it may cost up to $200 to provide the required insulation. The Department anticipates few rental units would be affected. The elimination of the fees for stipulations and waivers will be a cost savings to owners who would otherwise be required to file and pay a fee for either of these situations.

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 carol.dunn@wisconsin.gov.

NOTICE IS HEREBY GIVEN that pursuant to ss. 106.01 (9) and 227.11 (2), Stats., the Department of Workforce Development proposes to hold a public hearing to consider changes affecting Chapter DWD 295, relating to the enforcement of indenture agreements and affecting small businesses.

Thursday, February 28, 2007 at 1:30 p.m.

Madison

G.E.F. 1 Building, D203

201 E. Washington Avenue

Interested persons are invited to appear at the hearings and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.

Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.

Statutory authority: Sections 106.01 (9) and 227.11, Stats.

Statutes interpreted: Sections 106.01 (5j), Stats.

Explanation of agency authority. Section 106.01 (5j), Stats., provides that the department may on its own motion, or on the complaint of any person, after due notice and a hearing, make findings and issue orders declaring any indenture at an end if it is proved at the hearing that any apprentice, employer or organization that is a party to the indenture is unable to continue with the obligations under the indenture or has breached the indenture.

Section 106.01 (9), Stats., provides that the department may investigate, fix reasonable classifications, issue rules and general or special orders and, hold hearings, make findings and render orders upon its findings as shall be necessary to carry out the intent and purposes of s. 106.01, Stats. Orders issued are subject to review under ch. 227, Stats.

Summary of the proposed rules. The current procedure for enforcement of an indenture agreement allows any person alleging that an indenture has not been complied with to file a complaint with the department. The department may investigate the complaint and attempt to resolve it by conference, conciliation, and persuasion. If the department is unable to resolve the complaint by conference, conciliation, or persuasion, it notifies the parties. If the complaint requested that the department cancel the indenture agreement, the notice informs the parties that the agreement will be cancelled 20 days from the date of the notice, unless any party receiving the notice makes a request in writing for a hearing on the matter.

The department, the Apprenticeship Advisory Council, and apprenticeship customers agree that there is a timeliness problem with the current procedure. The current conciliation process takes 5-6 months and the full appeal process takes 9 months to one year. During this time, apprentices stay in the same apprenticeship status they are in at the time of the appeal. If in an active status, apprentices who have failed school still attend school, and apprentices who have demonstrated that they are not capable of doing the work still need to be placed at job sites.

The proposed rule repeals the conference, conciliation, and persuasion provision. If a party to an indenture wants to cancel the contract, the department will send an intent to cancel letter. The apprentice has 20 days to object and explain why the contract should not be cancelled. If the department receives a timely objection, it will conduct an investigation. If the investigation supports cancellation, the apprentice will be promptly cancelled. The apprentice may appeal the decision but the apprenticeship will remain cancelled throughout the appeal process.

The proposed rule will also require that a hearing be transcribed and allow a party to obtain a copy of the transcript by purchasing a copy from the transcription agency. The current rule does not require transcription unless a written request is made by any party. However, under current practice, the hearing examiners generally request a transcription. A written transcript also supports administrative review. In addition, the proposed rule will replace the term “division" with “department." The current rule refers to the division of apprenticeship and training, which no longer exists.

Summary of factual data and analytical methodologies. Before presenting the rule for revision, the Apprenticeship Advisory Council and the Bureau of Apprenticeship Standards presented the proposed rule to apprenticeship customers through the State Committee process. Representatives from key organizations supported this change, including: Associated Builders and Contractors; AGC of Wisconsin; AGC of Milwaukee; National Electrical Contractors Association, both the State Chapter and the Milwaukee Chapter; Mechanical Contractors of Wisconsin; Sheet Metal Employer Association; United Brotherhood of Carpenters--Southern District; IBEW--all locals; Ironworkers--both locals; Laborers District Council; Sheet Metal Workers; Steamfitters--all locals; Sprinkler Fitters Local 183; State AFL-CIO; and Painters & Decorators District Council.

Comparison with federal law. Federal law provides that apprenticeship programs and apprentice agreements may be registered with the federal Department of Labor (DOL) or a recognized state apprenticeship agency that has been properly constituted under acceptable law or executive order and has been approved by DOL for state registration or approval of local apprenticeship programs and agreements for federal purposes. Complaints arising under an apprentice agreement may be submitted to the appropriate authority. A state apprenticeship agency may adopt a complaint review procedure that differs from the federal procedure.

The federal complaint procedure provides that a complaint shall be submitted within 60 days of the final local decision and shall set forth the specific matter complained of, together with all relevant facts and circumstances. DOL or the recognized state agency shall render an opinion within 90 days after receipt of the complaint. During the 90-day period, DOL or the state agency shall make reasonable efforts to effect a satisfactory resolution between the parties involved.

Comparison with rules in adjacent states. In Illinois, Iowa, and Michigan, the U.S. Department of Labor resolves complaints under apprentice agreements pursuant to 29 CFR 29.1.

In Minnesota, complaints are resolved by the state apprenticeship agency. The state apprenticeship director conducts the initial investigation and issues a determination. If any person aggrieved by the decision files an appeal within 10 days of the date of service of the notice of decision, the agency appoints a hearing board composed of 3 members of the apprenticeship advisory council. The hearing board holds a hearing on the appeal and submit a recommended decision to the agency commissioner. The commissioner may adopt the recommended decision of the hearing board or disregard the decision and prepare a decision based on the findings of fact. Any person aggrieved by the agency decision may appeal to circuit court.

Effect on small businesses. The proposed rule affects small businesses as defined in s. 227.114 (1), Stats. The changes in the proposed rule will allow complaints under an indenture agreement to be resolved more quickly and without apprentices remaining in the apprenticeship pending the determination. This will relieve businesses of the hardship of maintaining apprentices who have demonstrated that they are not capable of doing the work during a lengthy appeal process. The department's small business regulatory coordinator is Jennifer Jirschele, (608) 266-1023, jennifer.jirschele@dwd.state.wi.us.

The proposed rule simplifies the procedures for enforcement of an indenture agreement. It does not have a fiscal effect.

The proposed rules are available at the web site http://adminrules.wisconsin.gov by typing “indenture agreement" in the search engine. This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper copy of the rule by contacting:

Elaine Pridgen

Office of Legal Counsel

Dept. of Workforce Development