2007 Wisconsin Act 42, enacted on December 21, 2007, regulates video service providers. Among other things, the act creates s. 66.0420(8), Wis. Stats., which regulates customer access to video services and prohibits discrimination in the provision of video services based on race or income.

The act provides a video service provider with a defense to a claim of discrimination based on income if the provider can show that within 3 years after the provider first provides video services, 30% of its customers are “low-income households." The act does not define “low-income households."

The act also requires large telecommunication video service providers to provide service access to 35% of households in its local exchange service area within 3 years, and 50% within 5 years. A large provider may apply to DATCP for a waiver or extension of these requirements.

DATCP believes it is necessary to create rules that interpret and establish procedures for the administration of s. 66.0420(8), Wis. Stats.

Do nothing. If DATCP does nothing, portions of s. 66.0420 (8), Wis. Stats., will be rendered meaningless because there will be no definition of “low income households." There will also be no clear procedures for granting extensions or waivers of service access requirements.

Sections 66.0420 (8), 66.0420 (13) (a), and 93.07 (1), Stats.

The rule interprets, and establishes procedures for the administration of a law that promotes video service access to residential consumers. The rule will enable video service providers, incumbent cable operators, municipalities and residential customers to understand the law, so that they can comply with or secure the protection afforded by the law.

No federal authority interprets or establishes procedures for the administration of s. 66.0420 (8), Wis. Stats. Federal law generally regulates telecommunications, cable, video, and cable television service providers under 47 USC s. 97.01, et seq.

DATCP estimates that it will use approximately .5 FTE staff time to develop this rule. This includes research, drafting, preparing related documents, holding public hearings, coordinating advisory council discussions and communicating with affected persons and groups. DATCP will assign existing staff to develop this rule.

The rule affects ch. ATCP 161, relating to the “Buy local" grant program.

This rule will implement the “buy local" grant program created under s. 93.48, Stats., by 2007 Wisconsin Act 20 (biennial budget act). Under s. 93.48, Stats., the Department of Agriculture, Trade and Consumer Protection (“DATCP") may award grants for projects designed to increase local purchases of Wisconsin agricultural products.

The “buy local" legislation requires DATCP to adopt rules for the program. It also authorizes DATCP to adopt temporary “emergency" rules pending the adoption of “permanent" rules. This “permanent" rule will be similar to the “emergency" rule. This “permanent" rule will:

The “buy local" grant program is designed to increase local sales of Wisconsin agricultural products. The biennial budget act appropriated $225,000 in grant funding for the FY 2007-09 biennium.

This rule will spell out grant procedures and criteria. Under this rule, the “buy local" grant program may focus primarily on food products, rather than other agricultural products such as timber, feed, fiber or nursery products. However, projects may have incidental benefits related to sales of other agricultural products.

This rule will authorize DATCP to award grants for projects designed to increase the sale of Wisconsin food products to local purchasers. For example, this rule may authorize DATCP to award grants for projects to create, expand, diversify or promote any of the following:

This rule will identify procedures and criteria that DATCP will use to solicit and evaluate grant proposals, and to make grant awards. This rule may limit the maximum size of individual grant awards, and may require grant recipients to make percentage matching contributions to funded projects.

This rule may spell out grant contract requirements and payment procedures, to ensure that grant payments reimburse bona fide project costs and that projects are completed as promised. This rule may identify the types of costs that are reimbursable with grant funds.

Section 93.48, Stats, requires DATCP to adopt rules for the “buy local" grant program. Without these rules, DATCP will not be able to award “buy local" grants. The statute spells out the basic goal of the grant program to increase local sales of Wisconsin agricultural products. Rule contents may reflect some policy choices related to eligible projects, grant procedures and criteria, maximum grant amounts, “matching" requirements, reimbursable expenses, etc. However, some of those provisions will be based on typical standards for other grant programs.

Sections 93.48 and 93.07 (1), Stats.

The “buy local" grant program will benefit farmers, businesses and communities that participate in production, distribution or marketing of locally produced foods. Grant recipients will benefit directly, while others will benefit indirectly from the creation of stronger local food networks and systems. This rule will establish standards and procedures for the “buy local" grant program to ensure that the program is effective and accountable.

The United States Department of Agriculture (USDA) administers a farmers' market promotion program. That program offers grants to help improve and expand domestic farmers' markets, roadside stands, community-supported agriculture programs and other direct farmer-to-consumer marketing mechanisms.

USDA also provides food assistance programs for pregnant women, women with infants, children up to 5 years old, and seniors who are at nutritional risk. Those programs provide or promote fresh, locally grown foods to program participants.

DATCP estimates that it will use approximately 0.50 FTE staff to develop this rule. The estimate 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.

The rule creates ch. DFI-CCS 20, relating to video service.

The objective of the rule is to create ch. DFI—CCS 20. Sections 66.0420 (3) (f) 4. and 66.0420 (13) (a), Stats., authorize the department to promulgate rules regarding video service provider franchises interpreting and establishing procedures for s. 66.0420. The purpose of this rule is to set forth certain qualifications, interpretations and procedures.

Sections 66.0420 (3) (f) 4., 66.0420 (13) (a) and 227.11 (2), Stats.

Video service providers, video service customers, municipalities.

The federal regulation addressing the activities is 47 USC 541 et seq.

250 hours

The rule affects ch. Ins 50, relating to audit, control and financial reporting requirements and affecting small businesses.

The proposed rule would foster improved financial oversight of Wisconsin-domiciled insurers including by establishing standards for the creation of independent audit committees and documentation of controls over financial reporting.

The existing requirements are contained in subch. I of ch. 50, Wis. Adm. Code. These provisions establish the requirement to file an annual audited financial report (CPA audit) and the related standards including applicability, auditor qualification requirements and the auditor duty to report adverse financial conditions. The proposed rule will update or add certain general requirements including those related to auditor independence, the scope of the audit and report, communication of internal control matters noted in an audit, an audit committee, and management's report of internal control over financial reporting. The proposed rule will be based on a model regulation adopted by the National Association of Insurance Commissioners (NAIC) at the June, 2006, national meeting. The proposed rule is under consideration as it has been recommended by the NAIC, will increase the ability of management and regulators to monitor financial status, and will provide control documentation contemplated in the enhanced financial surveillance procedures adopted by the NAIC and required as an accreditation standard for statutory examinations conducted after January 1, 2010.

Sections 601.41 (3) and 601.42 and ch. 623, Stats.

The proposed rule will affect Wisconsin-domiciled insurers required to file annual audited financial reports. The most significant impact will involve only those companies with premium volume in excess of $300 million per year.

The office is unaware of any proposed or existing federal regulation that is intended to address the activities to be regulated by this proposed rule.

200 hours and no other resources are necessary

The rule affects ch. NR 198, relating to aquatic invasive species control grants.

The Bureau of Watershed Management requests authorization to revise ch. NR 198 Aquatic Invasive Species (AIS) Control Grants to implement enabling legislation, facilitate investing a substantial increase in the funding allocation and make general housekeeping and programmatic improvements.

Act 20 increases the state cost-share rate for AIS Control grants to “up to 75%" (from “up to 50%") for the costs of projects and deletes a former requirement that grants be awarded to local government units, thus making any public or private entity eligible for a grant. Annual funding levels are increased from $1.5 million in FY 07 to $3.3 million in FY 08 and $4.3 million in FY 09 and thereafter, creating the opportunity to expand the scope of these grants. Act 20 also segregated the AIS Control Grant appropriation from Lake Protection and changed it to a biennial appropriation.

After four years of this grant program, both the state and local community grant sponsors are learning what it takes to prevent and control AIS. Each biennium the Legislature increased available grant funds. We can now incorporate these lessons in the rule to make it more effective and efficient to administer a larger grant appropriation.

With the substantial increases in the available funding and no increase in staffing support, the department seeks to expand the list of eligible recipients who can apply for grants to do AIS prevention and control. We propose broadening the scope of eligible projects and activities to better reflect the breadth and diversity of aquatic invasive species and the problems they cause in aquatic habitats. Originally, projects were “capped" at $75,000 when funding was more limited. This policy will be reviewed and revised. Increasing the maximum amount of a grant award will improve efficiency and allow the scope and scale of the projects commensurate with the scale at which these issues need to be approached. Along the same lines, the types of projects and the eligibility of certain costs can be expanded as we've listened to sponsor's needs and learned more about the most effective techniques for managing particular species. The Department recommends revising the code's eligible activities to allow grant funds to be used as an incentive for community-based project sponsors who control AIS in an environmentally sound manner according to a department approved plan. Application requirements, recordkeeping and reporting requirements and other financial and administrative policies can be improved and streamlined now that the department and local communities are experienced and more familiar with AIS prevention and control approaches.

We are interpreting the substantial increase in AIS grant funding as a strong message from the Legislature that concern over the welfare of our public waters is growing, along with the expectation that these additional funds be put to work as soon as possible. The timeline for permanent rule promulgation will impede the Department's ability to fully invest the authorized spending by the end of the biennium because of the current rule's limitations. Therefore, the Department is considering a request for enacting the proposed rule as an emergency rule to allow immediate implementation of the policies that will aide in effective investment of these funds. Given that the appropriation from which these funds are spent is a biennial appropriation, meaning that any unspent funds at the end of the biennium automatically lapse back to the Water Resources Account of the Conservation Fund, an emergency rule will help to minimize or eliminate the amount of funds that are lapsed.

Authority for the rule comes from s. 23.22, Stats., Invasive Species, sub. (2) (c), and general department rule making authority under s. 227.11 (2) (a), Stats.

Lake organizations and other grant sponsors will benefit from a higher cost state share rate and grant awards and expanded eligibility. Commercial herbicide applicators and consultants providing aquatic plant management services will be interested in the rule but should also be positively affected by increased business opportunities.