Rule-Making Notices
Notice of Hearing
Administration
NOTICE IS HEREBY GIVEN that pursuant to ss. 16.004 (1), 16.705 (1) and (2), Stats., the Department of Administration will hold a public hearing on the Department's rulemaking order amending Chapter VFF-EMT 1, Wis. Adm. Code, relating to the volunteer fire fighter and emergency medical technician service award program.
Hearing Information
Date and Time
Location
May 19, 2008
Monday
1:00 p.m.
Wis. Administration Bldg.
101 E. Wilson Street
Conference Room 4B (4th Floor)
Madison, Wisconsin
Submission of Written Comments
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: Terri Lenz, Wisconsin Department of Administration, Division of Enterprise Operations, P.O. Box 7867, Madison, WI 53707-7867, or by calling (608) 261-2298, fax at (608) 267-0600 or by email at terri.lenz@wisconsin.gov. Comments may also be submitted via the Wis. Administrative Rules Website at http://adminrules.wisconsin.gov Written comments must be received by May 28, 2008, to be included in the record of rule-making proceedings.
Agency Contact Person
Terri Lenz
Division of Enterprise Operations
P.O. Box 7867
Madison, WI 53707-7867
Phone: (608) 261-2298
Fax: (608) 267-0600
Copies of Proposed Rule
A copy of the rule and the full fiscal estimate may be obtained upon request from Terri Lenz, Wisconsin Department of Administration, Division of Enterprise Operations, P.O. Box 7867, Madison, WI 53707-7867, or by calling (608) 261-2298, fax at (608) 267-0600 or by email at terri.lenz@wisconsin.gov.
Analysis Prepared by the Dept. of Administration
The Department intends to promulgate a rule as required by Act 142 making changes to the Service Award Program for volunteer fire fighters, first responders and emergency medical technicians. The Service Award Board (SAB) was created by 1999 Wisconsin Act 105 consists of an eight-member board appointed by the Governor. The program intent is to assist in the recruitment and training of volunteer fire fighters and emergency medical technicians. The state will annually match the municipal contributions up to $2 million. Currently there are 203 volunteer departments participating in the program covering 5,773 fire fighters and emergency medical technicians.
Act 142 amends the length of service award program by extending the benefits of the program to first responders and providing that a county may participate in the program as well as a city, village or two. The act also removes the requirement that a volunteer must have served for at least five years before a local government body may purchase additional years of service.
Statutes interpreted
Sections 16.004 (1), 16.25 (2), (3), (4) and (5), Stats.
Statutory authority
Sections 16.004 (1), 16.25 (2), (3), (4) and (5), Stats.
Explanation of agency authority
Wisconsin Act 142 to amend ss. 16.25 (title), (1) (a), (c), (d), (2), (3) (a) to (k), and (5); and to create 16.25 (1) (am) of the statutes; relating to the Volunteer Fire Fighter and Emergency Medical Technician Service Award Program.
Related statute or rule
Administrative rule Chapter VFF-EMT 1.
Plain language analysis
The program was created by 1999 Wisconsin Act 105 and is governed by an eight-member board appointed by the Governor. The program intent is to assist in the recruitment and training of volunteer fire fighters, first responders and emergency medical technicians. The state will annually match the municipal contributions up to $2 million. Currently there are 203 volunteer departments participating in the program covering 5,773 fire fighters and emergency medical technicians.
Act 142 made changes to various statutes governing the program. They consist of:
  Renaming the Volunteer Fire Fighter and Emergency Medical Technician Service Award Program to the Service Award Program;
  Renaming the Volunteer Fire Fighter and Emergency Medical Technician Service Award Board to the Service Award Board;
  Extending the benefits of the program so first responders are eligible participants;
  Adding that a county may participate under the definition of a municipality;
  Eliminating the requirement that a volunteer have at least 5 years of experience before prior year service can be purchased;
  A volunteer who has not met all of the vesting requirements shall have their account closed, not forfeited;
  Include the provision that the beneficiary of a volunteer who is killed while actively engaged in the rendering of volunteer fire fighting, first responder, or emergency medical technical service be paid the service lump sum; and
  Adds the provision that the volunteer must meet any other program requirements established by the municipality.
Comparison with federal regulations
This proposed rule is specific to the State of Wisconsin Service Award Program law and is completely separate from, and unaffected by, federal regulations.
Comparison with rules in adjacent states.
Michigan: The department is unaware of and was unable to locate any rules in this state pertaining to this subject.
Minnesota: Minnesota does have a program however it is decentralized. Each department participates independently and the programs differ.
Illinois: The department is unaware of and was unable to locate any rules in this state pertaining to this subject.
Iowa: The department is unaware of and was unable to locate any rules in this state pertaining to this subject.
Summary of factual data and analytical methodologies
2005 Wisconsin Act 142 requires the department to amend this rule.
Initial Regulatory Flexibility Analysis
The proposed rule makes changes to the program as prescribes in Wis. Act 142 and allows local units of governments, counties and first responders to be eligible to participate under the changes enacted by Act 142 to allow additional volunteers to become eligible to participate in the program.
There is no effect on small business.
Fiscal Estimate
State fiscal effect
Increase existing appropriations. The increase in costs cannot be absorbed within the agency's budget.
Local fiscal effect
Indeterminate
Types of local government units affected
Towns, villages, cities, counties
Fund sources affected
GPR
Long-range fiscal implications
None
Notice of Hearing
Agriculture, Trade and Consumer Protection
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announces that it will hold public hearings on a proposed amendment to chapter ATCP 123, Wis. Adm. Code, relating to electronic communication services.
Hearing Information
Wednesday, May 28, 2008
9:00 a.m. to 11:00 a.m.
Dept. of Agriculture, Trade and Consumer Protection
2811 Agriculture Drive, Board Room (CR-106)
Madison, Wisconsin, 53718-6777
Hearing impaired persons may request an interpreter for these hearings. Please make reservations for a hearing interpreter by Thursday May 15, 2008, by writing to Michelle Reinen, Division of Trade and Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911, telephone (608) 224-5160. Alternatively, you may contact the DATCP TDD at (608) 224-5058. Handicap access is available at the hearings.
Submission of Written Comments
DATCP will hold a public hearing at the time and place shown above. DATCP invites the public to attend the hearing and comment on the proposed rule. Following the public hearing, the hearing record will remain open until Friday, June 13, 2008 for additional written comments. Comments may be sent to the Division of Trade and Consumer Protection at the address below, by email to michelle.reinen@wi.gov or online at: https://apps4.dhfs.state.wi.us/admrules/public/Home
To provide comments or concerns relating to small business, please contact DATCP's small business regulatory coordinator Keeley Moll at the address above, by emailing to Keeley.Moll@wi.gov or by telephone at (608) 224-5039.
Copies of Proposed Rule
You may obtain a free copy of this rule by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Trade and Consumer Protection, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling (608) 224-5160 or emailing michelle.reinen@wi.gov. Copies will also be available at the hearings. To view the proposed rule online, go to:
Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection
The Department of Agriculture, Trade and Consumer Protection (DATCP) administers rules to protect consumers against unfair sales and billing practices related to telecommunications services, cable television services and satellite television services. Current rules are contained in ch. ATCP 123, Wis. Adm. Code.
This rule updates current rule coverage to reflect new service delivery methods and “bundling" practices, and to conform to law changes enacted in 2007 Wis. Act 42. This rule maintains current protection for video service subscribers, regardless of the method used to deliver the video service.
Statutes interpreted
Sections 100.20 and 100.207, Wis. Stats.
Statutory authority
Sections 93.07 (1), 100.20 (2), 100.207 (6) (e) and 100.209 (3), Wis. Stats.
Explanation of agency authority
DATCP has general authority, under s. 93.07(1), Stats., to interpret laws under its jurisdiction. DATCP has authority, under s. 100.207, Stats., to regulate sales and billing practices related to telecommunications. DATCP also has broad authority, under s. 100.20, Stats., to regulate methods of competition and trade practices in business.
Related rules or statutes
The Wisconsin public service commission (PSC) regulates telecommunications service providers to the extent provided under chapter 196, Stats. The department of financial institutions (DFI) and local municipalities regulate video service providers to the extent provided in ch. 66, Stats.
2007 Wisconsin Act 42 changed the way that Wisconsin regulates cable television and other video services. The act provided for state, rather than local, franchising of video service providers. The act also changed prior definitions, and added a new definition of “video services." This rule incorporates new statutory definitions, in order to maintain the coverage of current rules.
Rule background
Current DATCP rules regulate unfair sales and billing practices related to telecommunications, cable television and satellite television provided to consumers on a subscription basis. The current rules do all of the following:
  Require providers to disclose subscription terms and conditions.
  Prohibit billing for unordered services.
  Prohibit the imposition of price increases without prior notice and opportunity to cancel.
  Prohibit unfair “negative option" billing practices.
Since DATCP adopted the current rules, business practices and technology have changed. For example, video services can now be delivered over telephone lines. Providers now offer “bundled" service packages that may include local telephone, long-distance telephone, wireless telephone, video, internet and other services. Consumers may receive a number of these services on one electronic device, and may receive one bill for all of the “bundled" services.
This rule updates current rule coverage to ensure that protection is afforded to video service consumers on an equal basis, regardless of the technology or method used to deliver the service. This rule does not make major changes in rule content, but does make minor content adjustments to address new service delivery methods and “bundling" practices.
Plain language analysis
This rule does all of the following:
  Retitles ch. ATCP 123 from “Telecommunications and Cable Television Services" to “Electronic Communication Services."
  Defines “electronic communication service" to include telecommunications service, video service, broadband internet service and satellite television service provided on to consumers on a subscription basis. “Electronic communication service" also includes any good or service that a subscriber is required to purchase from the service provider in order to obtain the electronic communication service.
  Defines “video programming" and “video service," consistent with current statutes.
  Changes “telecommunications service or cable television service" where it appears in the main body of the rule to “electronic communication service."
  Changes other words in the rule text to reflect recent statutory definition changes (2007 Wisconsin Act 42).
Comparison with federal regulations
Congress and the federal communications commission have significantly reduced federal regulation of telecommunications service and video services. The federal government has left, to state governments, much of the responsibility for regulating the business practices of service providers.
Comparison with rules of adjacent states
No surrounding states regulate the subscription and billing practices of telecommunication and video service providers in a manner similar to Wisconsin. The surrounding states approach the regulation of this industry by focusing on specific trade practices, such as the unauthorized switching of long-distance services or consumer protection for users of coin-operated phones. Wisconsin is the only state that has comprehensive regulation providing standards for subscription and billing practices that apply equally to all competing providers.
Summary of factual data and analytical methodologies
This rule does not depend on any complex analysis of data. This rule merely updates current rules to address changes in business practices and technology, and to incorporate new definitions created under 2007 Wisconsin ACT 42.
Initial Regulatory Flexibility Analysis
This rule will have few, if any, negative impacts on business. This rule simply updates the definitions and coverage of current rules to prevent the erosion of current consumer protection regulations. Some video service providers now use new electronic delivery methods that are not covered by current rules. This rule applies existing consumer protection standards to those new delivery methods, so that consumers will continue to enjoy protection. This rule will help maintain fair competition between video service providers, regardless of the delivery method used. None of the video service providers using the new electronic delivery methods are small businesses.
Fiscal Estimate
This rule will have no significant fiscal impact on DATCP or local units of government.
Notice of Hearing
Commerce
Elevators, Escalators and Lift Devices, Ch. Comm 18
NOTICE IS HEREBY GIVEN that pursuant to ss. 101.02 (15) (j), 101.17, 101.63 and 101.981 to 101.986, Stats., the Department of Commerce will hold a public hearing on proposed rules under chapters Comm 5, 18 and 21, relating to the technical requirements for conveyances and licensing of installers of residential conveyances.
Hearing Information
The public hearing will be held as follows:
Date and Time:
Location:
May 15, 2008
Thursday
10:00 a.m.
Thompson Commerce Bldg.
Third Floor Conf. Room #3B
201 W. Washington Avenue
Madison, Wisconsin
This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Submission of Written Comments
Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until May 29, 2008, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to Larry Swaziek, at the Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689, or Email at lswaziek@wisconsin.gov.
Copies of Proposed Rule
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.
Agency Contact Person
Larry Swaziek, Program Manager, (608) 267-7701, email: larry.swaziek@wisconsin.gov.
Small Business Regulatory Coordinator
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.
Analysis Prepared by Department of Commerce
Statutes interpreted
Sections 101.02 (15) (h) to (j), 101.17, 101.63 (1), and 101.981 to 101.985, Stats.
Statutory authority
Sections 101.02 (15) (h) to (j), 101.17, 101.63 (1), and 101.981 to 101.985, Stats.
Related statute or rule
Chapters Comm 60 to 66, Wisconsin Commercial Building Code
Chapters Comm 20 to 25, Wisconsin Uniform Dwelling Code
Explanation of agency authority
Under the authority of ss. 101.17, 101.63 and 101.982, Stats., the Department has the authority to promulgate rules for the safe installation and operation of conveyances (elevators, escalators and lift devices). Under the authority of ss. 101.17, 101.983 and 101.988, Stats., the Department has the authority to promulgate rules for required permits, inspection and enforcement of the technical standards. Under the authority of ss. 101.984 and 101.985, Stats., the Department has the authority to develop licensing and permitting requirements related to the installation of conveyances.
Plain language analysis
The primary revisions to chapter Comm 18 are to adopt the most current editions of the ASME A17.1, Safety Code for Elevators and Escalators and the ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts relating to the regulation of conveyances. The rules under this chapter are also being updated to require elevators and dumbwaiters serving dwelling units to comply with the technical requirements established in chapter Comm 18, as authorized by recent legislation. The proposed rules contain a number of modifications to the technical requirements within these standards, reorganization of current requirements and editorial changes. The following is a summary of the major rule changes to these chapters:
(a)   The definition of “conveyance" is included under chapters Comm 5 and 18 and the definition excludes platform lifts and stairway chairlifts from regulations when they serve private dwelling units. A definition of “dwelling unit" has also been included under Comm 18. [See Comm 5.003 (10g) and Comm 18.1004 (6) and (10)]
(b)   The licensing requirements for conveyance contractors and installers in chapter Comm 5 are being updated to require such licensure for the installation of elevators and dumbwaiters serving dwelling units. [See Comm 5.003 (10g), 5.991, 5.998 and 5.999]
(c)   The rules have been modified to differentiate between conveyances installed in public buildings and places of employment and to specifically identify those conveyances that will be included for code application when they are installed in dwelling units. [See Comm 18.1002 (1) (b)]
(d)   Chapter Comm 18 has been modified in numerous places to use the term “conveyances" in place of the terms “elevators, escalators and lift devices." [See Comm 18.1008, 18.1009, 18.1013, 18.1014 and 18.1015]
(e)   A requirement will be created to indicate that ASME A17.1 section 5.3 applies to elevators serving dwelling units, except for those private residence elevators installed in public buildings and places of employment prior to July 1, 2002. The requirements for private residence inclined elevators as specified under ASME A17.1 section 5.4 will now apply to dwelling units and the current requirement indicating that ASME A17.1 section 5.4 requirements do not apply will be repealed. [See Comm 18.1705 (2) and 18.1705 (3)]
(f)   The plan review requirements will be the same for elevators or dumbwaiters installed in public buildings, places of employment or serving dwelling units, except plans submitted for elevators or dumbwaiters serving dwelling units will not be required to contain the stamp of the supervising building designer. [See Comm 18.1013 (2) (b) 6.]
(g)   Periodic inspection intervals will be the same for elevators or dumbwaiters installed in public buildings, places of employment or serving dwelling units, which will require an annual routine inspection and an annual permit to operate. [See Comm 18.1014 and 18.1708]
(h)   The wording under ASME A17.1 section 2.27.3 relating to Phase I emergency recall operation has been clarified to require only those elevators serving a specific lobby to be recalled when the fire alarm initiating device serving that lobby is activated. [See Comm 18.1702 (10)]
(i)   The 2007 edition of the ASME A17.1 Safety Code for Elevators and Escalators and the 2005 edition of the ASME 18.1 Safety Standard for Platform Lifts and Stairway Chairlifts will be adopted by reference. [See Comm 18.1005]
(j)   The periodic inspection and tests of hydraulic elevators, specifically, the relief valve setting and system pressure test and the hydraulic cylinders and pressure piping tests will apply to hydraulic elevators installed prior to January 1, 1994 and that have below ground cylinders. [See Comm 18.1708 (3) and (11) (a)]
(k)   In accordance with the 2005 Wisconsin Act 456, routine inspections and tests of stairway chairlifts installed in public buildings, places of employment will be made at intervals not longer than one year. [See Comm 18.1810 (2)]
(L)   A number of Wisconsin modifications relating to the height of grab rails in platform lifts have been eliminated since the ASME A18.1 Standard now covers this requirement. [See Comm 18.1802 (1) (c) and (e) 2.]
(m) Create rules to cover special platform lifts for use in courtrooms. [See Comm 18.1801 and 18.1820]
(n)   Create a requirement under the Uniform Dwelling Code (UDC) that will reference chapter Comm 18 when an elevator or dumbwaiter is installed that will serve a dwelling unit covered under the UDC. [See Comm 21.115]
Comparison with federal regulations
There are no existing or proposed federal regulations that address or impact the activities to be regulated by this rule.
Comparison with rules in adjacent states
An Internet-based search found that all of the adjacent states adopt by reference certain editions of the ASME A17.1, Safety Code for Elevators and Escalators and the ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts. The adjacent states also create amendments to the adopted standard similar to Wisconsin's administrative rules relating to elevators, escalators and lift devices.
The following are the adjacent states and the edition of the ASME coded they adopt and enforce:
(a) The Illinois Office of the State Fire Marshal, Division of Elevator Safety is responsible for implementing the Elevator Safety and Regulation Acts. The 2004 edition of the ASME A17.1, Safety Code for Elevators and Escalators, the 2005 A17.1a, Addenda and the 2005 edition of the ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts are both adopted by reference.
(b) The Iowa Department of Workforce Development, Division of Labor Services, Elevator and Escalators oversees that all elevators, escalators, dumbwaiters and related equipment must comply with all rules and statutes. The 2004 edition of the ASME A17.1, Safety Code for Elevators and Escalators, the 2003 edition of the ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts are both adopted by reference.
(c) The Minnesota Department of Labor and Industry is responsible for enforcing minimum requirements relating to building codes, including elevators and related devices. The requirements include the design, construction, installation, alteration, repair, removal and operation and maintenance of passenger elevators. The 2004 edition of the ASME A17.1, Safety Code for Elevators and Escalators and the 2005 edition of the ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts are both adopted by reference.
(d) The Michigan Department of Labor and Economic Growth is responsible for issuing permits, the examination and licensing of elevator journeypersons and contractors, inspecting of elevators, escalators and dumbwaiters, complaint investigations and reporting elevator accidents. The state rules establish, for the protection of the general public, minimum safety requirements for inspection, construction, installation, alteration, maintenance, repair and operation of elevators. The 2004 edition of the ASME A17.1, Safety Code for Elevators and Escalators and the 2003 edition of the ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts are both adopted by reference.
Summary of factual data and analytical methodologies
The primary methodology for updating the Wisconsin Administrative Code, chapter Comm 18 relating to conveyances has been a review and assessment of the latest editions of the national technical standards for the design and construction of conveyances, which serves as the basis for chapter Comm 18. The review and enforcement requirements for elevators and dumbwaiters serving private dwelling units were also included under chapter Comm 18 to be consistent with recent legislation. Staff prepared a comprehensive comparison of the changes in the latest editions of the ASME standards to the editions currently adopted under Comm 18. The Department's review and assessment process involved the participation of the Conveyance Safety Code Council. The members of that Council represent many stakeholders involved in the conveyance industry, including manufacturers, inspectors, building contractors and the general public as users of the conveyances. (A listing of the Conveyance Safety Code Council is provided at the end of this analysis.)
The Department believes that the national model codes reflect current societal values with respect to protecting public health, safety and welfare in the design, construction, use, operation and maintenance of conveyances in commercial and residential buildings. The ASME standard setting committees use a process open to all parties in the development of their codes. More information on the development of these standards may be obtained from the ASME web site at: www.asme.org
Analysis and supporting documents used to determine effect on small business
The Department used the Conveyance Safety Code Council to gather and analyze information on potential impacts in complying with both the technical and administrative requirements of the codes. As authorized in recent legislation, elevators and dumbwaiters that serve dwelling units will be required to comply with the inspection and permit requirements similar to those for elevators and dumbwaiters installed in commercial buildings. Small businesses that install elevators and dumbwaiters in commercial facilities will be familiar with the inspection and permit processes that will now be required for installations serving dwelling units.
In addition to posting rule development and council activities on the department's web site, the department offers an Email subscription service, which is available to all small businesses. This service provides Email notification of council meetings, meeting, agendas and council meeting progress reports so small businesses can follow proposed code changes.
Adopting the most current edition of the 2007 edition of the ASME A17.1 and 2005 edition of the ASME A18.1 national standards will not impose a significant impact on small businesses selling conveyances or providing services for conveyances.
It is anticipated this requirement will not have a significant impact on small businesses installing elevators and dumbwaiters.
Initial Regulatory Flexibility Analysis
Summary
The Department believes the rules will not increase the effect on small businesses from what the current rules impose on them. An economic impact report has not been required pursuant to s. 227.137, Stats.
Types of small businesses that will be affected by the rules.
Small business selling or providing services on conveyance equipment or small businesses that own buildings with conveyances will be affected by the proposed rules. However, based on the minimal costs to provide the safety features of the Firefighters' Emergency Operation (FEO) key switch and to test hydraulic elevators with below ground cylinders, the Department believes there will be no significant impact on small businesses. The following is a summary of the proposed changes:
a)   The proposed rules update chapter Comm 18 by adopting the most current edition of the ASME A17.1, Safety Code for Elevators and Escalators and ASME A18.1, Safety Standard for Platform Lifts and Stairway Chairlifts. It is important for all elevator companies to be designing and providing services to the general public using the most current edition of the national safety standards.
b)   When an elevator is added to a building or an existing elevator has certain alterations, the FEO key will be required. The cost of the key per elevator and per machine room is approximately $45 and approximately $60 per hour for installation. The typical installation time is one hour. It is important that elevator companies provide the same key throughout the building to help ensure the safety of firefighters and building occupants should fir or other emergencies occur.
c)   The annual test for hydraulic elevators with below ground cylinders is approximately $500 per elevator. If oil is leaking from these below ground cylinders and not corrected, the safety of the riding public could be jeopardized.
Reporting, bookkeeping and other procedures required for compliance with the rules.
The rules create a new form for reporting of 5-year safety tests on elevators. The new form helps simplify the process for reporting the testing results.
Types of professional skills necessary for compliance with the rules.
For any small business installing, repairing or maintaining conveyances, the individuals providing these services must be licensed as specified under chapter Comm 5.
Rules have a significant economic impact on small businesses?
No.
Environmental Analysis
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.
Fiscal Estimate
Summary
1.   Switch key –When an elevator is added to a building or an existing elevator has certain alterations or renovations done, the universal Firefighter's Emergency Operation (FEO) key for fire safety purposes would be required on these elevators and on all other elevators in the building. Each switch key or tumbler assembly costs about $45, and each elevator and each machine room requires a switch key. The estimated cost for labor is about $60 an hour, and the typical installation time is one hour. The estimated cost to key a single elevator would be about $150. For a building with six elevators and two machine rooms, the estimated cost to key all the same would be about $500. This requirement would help ensure the safety of firefighters and building occupants should fire or other emergencies occur.
2.   Annual tests for hydraulic elevators with below ground cylinders – Currently, the Wisconsin code requires annual relief valve setting and system pressure tests for hydraulic elevators installed before January 1975 with below ground cylinders. The proposed rules would align with the national elevator code and require the testing of below ground cylinders and piping installed between January 1975 and January 1994. The purpose of the tests is to determine if the hydraulic cylinders are operating properly to ensure safety for people using the elevators and if any oil is leaking from the cylinders. The estimated cost to perform a routine relief valve test is about $500 an elevator.
  Between January 1975 and January 1994, there were about 3,700 hydraulic elevators installed in Wisconsin with below ground cylinders. This testing requirement may affect some state of Wisconsin-owned buildings. The estimated cost for expanding the requirement to 1994, however, would be minimal for these state-owned buildings because the annual elevator maintenance contracts include performing this test. Local governments also will be impacted; however, it is most likely that the majority of hydraulic elevators installed in local government buildings in Wisconsin also are covered by annual maintenance contracts.
3.   One- and 2-family dwellings as per WI Act 456 – The proposed rules will require permits, plan reviews and inspections for elevators and dumbwaiters installed in one- and 2-family dwellings. The department believes, however, that the cost impact will not be more than created by the 2005 Wisconsin Act 456.
State fiscal effect
None
Local government fiscal effect
Mandatory increase in costs.
Types of local governmental units affected
Towns, villages, cities, counties, school districts, WTCS districts.
Fund sources affected
PRO
Long-range fiscal implications
None known
Notice of Hearing
Commerce
Boilers and Pressure Vessels, Ch. Comm 41
NOTICE IS HEREBY GIVEN that pursuant to ss. 101.02 (15) (h) to (j) and 101.17, Stats., the Department of Commerce will hold a public hearing on proposed rules revising chs. Comm 23, 41 and 45, relating to boilers and pressure vessels and mechanical refrigeration.
Hearing Information
The public hearing will be held as follows:
Date and Time:
Location:
May 21, 2008
Wednesday
10:00 a.m.
Thompson Commerce Bldg.
Third Floor Conf. Room #3C
201 W. Washington Avenue
Madison, Wisconsin
This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Submission of Written Comments
Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until June 4, 2008, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to Joe Hertel, at the Department of Commerce, P.O. Box 2689, Madison, WI 53701-2689, or Email at joe.hertel@ wisconsin.gov.
Copies of Proposed Rule
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.
Agency Contact Person
Joe Hertel, Program Manager, joe.hertel@commerce. wi.gov, (608) 266-5649.
Small Business Regulatory Coordinator
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.
Analysis Prepared by Department of Commerce
Statutes interpreted
Sections 101.02 (15) (h) to (j) and 101.17, Stats.
Statutory authority
Sections 101.02 (15) (h) to (j) and 101.17, Stats.
Related statute or rule
Chapters Comm 60 to 66, Wisconsin Commercial Building Code
Chapters Comm 20 to 25, Wisconsin Uniform Dwelling Code
Explanation of agency authority
Section 101.02 (15) (h) to (j), Stats., grants the Department of Commerce general authority for protecting the health, safety and welfare of the public by establishing reasonable and effective safety standards for the construction, repair and maintenance of public buildings and places of employment. Section 101.17, Stats., indicates that machines and boilers cannot be installed or used in Wisconsin unless they comply with the rules of the department.
Plain language analysis
Chapter Comm 41 currently contains the minimum safety standards for the design, construction, installation, operation, inspection, testing, maintenance, repair and alteration of boilers and pressure vessels installed in public buildings and at places of employment. The proposed revisions to chapter Comm 41 bring the state boiler and pressure vessel code up to date with current technology and nationally recognized standards and clarify existing rules. The proposed revision in chapter 45 clarifies the requirement for mechanical relief discharge piping. The following is a summary of the major proposed changes to this chapter:
a.   Modify the scope of chapter Comm 41 to include equipment covered by this code and installed at one-or 2-family dwelling units and include a cross-reference to Comm 41 from the Uniform Dwelling Code. [Comm 23.04 (4), 41.02 (1), 41.16 (1) (b) 2., 41.16 (3) (b), 41.18 (l) (o), and 41.24 (1) (b)]
b.   Define solid fuel-fired water-heating appliances to include any equipment that heats water by burning solid fuels for the purpose of providing space or process heating. The rules will also permit a manual solid-fuel feed system to be converted to an automatic feed system. [Comm 41.04 (38) and 41.49]
c.   Adopt by reference the most current edition of the national standards relating to boilers and pressure vessels and include correct cross-references to these standards. [Comm 41.10 (2), Comm 41.91 (1) and Comm 41.92 (2) (a)]
d.   Update the department contact information in several informational notes. [Comm 41.05 Note 2, Comm 41.16 (1) (a) Note, Comm 41.23 (2) (a), Comm 41.41 (2) (a) Note, and Comm 41.48 Note]
e.   Clarify the requirements relating to temperature controls for automatically-fired hot water boiler or a system of commonly connected hot water heating boilers. [Comm 41.29 (2) (b)]
f.   Include requirements that a piping installer must notify the certified inspector before starting construction of a power piping system, and give the inspector a minimum of 5 business days notice to schedule the inspection. [Comm 41.16 (2) (c) and 41.41 (2) (c)]
g.   Eliminate the testing and maintenance requirements for historical boilers since the national standard that includes these requirements will be adopted by reference. [Comm 41.92]
h.   Clarify that mechanical refrigeration relief discharge piping must be compatible with the refrigerant used. [Comm 45.31 (4) (b)]
Comparison with federal regulations
An Internet-based search of the Code of Federal Regulations(CFR) found the following existing federal regulations relating to the activities to regulated by this rule:
Title 10 CFR Part 50 – Domestic Licensing of Production and Utilization Facilities. This regulation of the Nuclear Regulatory Commission applies to systems and components of boiling and pressurized water-cooled nuclear power reactors. This regulation adopts portions of the ASME Boiler and Pressure Vessel Code.
An Internet-based search of the 2005 through 2008 issues of the Federal Register found a final rule published September 29, 2005 concerning Title 10 CFR Part 50, the Nuclear Regulatory Commission (NRC). The rule amends the NRC regulations to incorporate by reference the latest edition of the ASME Boiler and Pressure Vessel Code pertaining to construction and in-service inspection of nuclear power plant components.
Comparison with rules in adjacent states
Originating in 1914, the ASME Boiler and Pressure Vessel Code is now adopted in part or in its entirety, by 49 states and numerous municipalities and territories of the United States and all the provinces of Canada.
An Internet-based search found that all adjacent states adopt by reference various editions and addenda of the ASME Boiler and Pressure Vessel Code. These states also create amendments to the adopted standard similar to Wisconsin's administrative rules for boilers and pressure vessels.
The following states and their respective departments have adopted and enforced the following ASME code editions:
a.   The Illinois Office of the State Fire Marshal, Division of Boiler and Pressure Vessel Safety regulates the construction, installation, operation, inspection and repair of boilers and pressure vessels throughout the state of Illinois. The Illinois Boiler and Pressure Vessel Safety Rules and Regulations are similar to the requirements in the Wisconsin Boiler and Pressure Vessel Code, including the Illinois incorporation by reference of the ASME Boiler and Pressure Vessel Code (2001 with 2003 addenda) the National Board Inspection Code (2001 with 2003 addenda) and the API 510 standard (8th edition).
b. The Iowa Department of Workforce Development, Division of Labor Services administers and enforces the Boilers and Unfired Pressure Vessels Chapter of the Iowa Code. That chapter requires new installations of boilers and pressure vessels to be designed, manufactured, installed, inspected and stamped in accordance with the applicable requirements of the ASME Boiler and Pressure Vessel Code (2004 with 2005 addenda).
c.   The Michigan Department of Labor and Economic Growth administers the Michigan Boiler Law and rules. The rules are similar to the Wisconsin rules, and establish minimum standards of safety for the use, construction, installation, inspection, alteration and repair of boilers with limited rules for specified pressure vessels. The rules adopt the National Board Inspection Code (2004 with addenda), the ASME Boiler and Pressure Vessel Code (2004 with addenda) and the ASME B31.1 Power Piping standard (2004 with addenda).
d.   The Minnesota Department of Labor and Industry, Division of Boiler Inspection administers rules that address the manufacture, installation, repair, operation, safety and inspection of boilers, pressure vessels and appurtenances. The rules contain provisions for licensing of boiler operations and include minimal requirements for hobby boilers (steam traction engines). The rules are similar to Wisconsin rules and incorporate the most recent editions and addenda of the ASME Boiler and Pressure Vessel Code and the National Board Inspection Code.
Summary of factual data and analytical methodologies
The primary methodology for updating the Wisconsin Boilers and Pressure Vessels Code, chapter Comm 41 has been a review and assessment of the latest editions of the national model codes that serve as the basis for Wisconsin codes. The department's review and assessment process involved the participation of the Boiler and Pressure Vessel Code Advisory Council. The members of that Council represent the many stakeholders involved in the boilers and pressure vessels industry including manufacturers, inspectors, building contractors, regulators, labor, insurance and the public. (A listing of the Boiler and Pressure Vessel Code Advisory Council is provided at the end of this analysis.)
The department believes the national model codes reflect current societal values with respect to protecting public health, safety and welfare in the design, construction, use, operation and maintenance of boilers and pressure vessels in commercial and public buildings and places of employment.
The ASME Boiler and Pressure Vessel Code is kept current by the Boiler and Pressure Committee, a volunteer group of more than 950 engineers. The Committee meets regularly to consider requests for interpretations, revision and to develop new rules. In the formulation of its rules and in the establishment of maximum design and operating pressures, the Committee considers technological advances including materials, construction, methods of fabrication, inspection, certification and overpressure protection. More information on the development of these standards may be obtained from the ASME web site at www.asme.org.
Analysis and supporting documents used to determine effect on small business
The department used the Boiler and Pressure Vessel Code Advisory Council to gather and analyze information on potential impacts in complying with both the technical and administrative requirements of the codes. A responsibility of council members is to bring forth concerns that their respective organizations may have with the requirements including economic impact.
In addition to posting rule development and council activities on the department's web site, the department offers an Email subscription service, which is available to all small businesses. This service provides Email notification of council meetings, meeting, agendas and council meeting progress reports so small businesses can follow proposed code changes.
Adopting the most current edition of the ASME national standards will not impose a significant impact on small businesses involved in the inspection, maintenance, servicing, and reporting requirements for boilers and pressure vessels.
Initial Regulatory Flexibility Analysis
Summary
The department believes the rules will not increase the effect on small businesses from what the current rules impose on them. An economic impact report is not required pursuant to s. 227.137, Stats.
Types of small businesses that will be affected by the rules.
The proposed rules will affect any business involved with the design, construction, installation, operation, inspection, testing, maintenance, repair or alteration of boilers or pressure vessels and mechanical refrigeration. The Department believes the rules will provide additional options for small businesses who want to use a solid fuel-fired water-heating appliance since the rules will permit an automatic feed system and the use of other fuels.
Reporting, bookkeeping and other procedures required for compliance with the rules.
There is no new reporting, bookkeeping or other procedure necessary for compliance with the rules.
Types of professional skills necessary for compliance with the rules.
There are no types of professional skills necessary for compliance with the rules.
Rules have a significant economic impact on small businesses?
No.
Environmental Analysis
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.
Fiscal Estimate
Summary
The Safety and Buildings Division is responsible for administering and enforcing rules relating to boilers and pressure vessels. The proposed rules adopt by reference the latest edition of ASME Standards and clarify existing technical requirements. The existing requirements relating to solid fuel-fired water-heating appliances have been reorganized and modified to permit an automatic feed system and the use of other fuels. The proposed rules for solid fuel-fired water-heating appliances may slightly increase the Division's workload, but it is anticipated the work can be absorbed within the agency's budget.
The proposed rules will require inspection of solid fuel-fired water-heating appliances but it is anticipated this inspection cost will not have a significant effect on the private sector.
State fiscal effect
None
Local government fiscal effect
None
Long-range fiscal implications
None known
Notice of Hearing
Commerce
Financial Resources for Businesses and Communities, Chs. Comm 104
NOTICE IS HEREBY GIVEN that pursuant to section 560.207 (4) of the Statutes, the Department of Commerce will hold a public hearing on emergency rules and proposed permanent rules creating chapter Comm 132, relating to certifying applicants and allocating dairy manufacturing facility investment tax credits, and affecting small businesses.
Hearing Information
The public hearing will be held as follows:
Date and Time:
Location:
May 14, 2008
Wednesday
9:30 a.m.
Thompson Commerce Bldg.
Third Floor, Room 3B
201 W. Washington Avenue
Madison, Wisconsin
This hearing will be held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call Sam Rockweiler at (608) 266-0797 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Submission of Written Comments
Interested persons are invited to appear at the hearing and present comments on the emergency rules and proposed permanent rules.
Persons making oral presentations are requested to submit their comments in writing, via e-mail. Persons submitting comments will not receive individual responses. The hearing record on this rulemaking will remain open until May 19, 2008, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. E-mail comments should be sent to srockweiler@commerce. state.wi.us. If e-mail submittal is not possible, written comments may be submitted to Sam Rockweiler, Department of Commerce, Division of Environmental and Regulatory Services, P.O. Box 14427, Madison, WI 53708-0427.
Copies of Proposed Rule
The emergency rules and proposed permanent rules and an analysis of the rules are available on the Internet by entering “Comm 132" in the search engine at the following Web site: http://adminrules.wisconsin.gov. Paper copies may be obtained without cost from Steven Sabatke at the Department of Commerce, Bureau of Business Development, P.O. Box 7970, Madison, WI, 53707-7970; or at telephone (608) 267-0762 or (608) 264-8777 (TTY); or at ssabatke@commerce.state.wi.us.. Copies will also be available at the public hearing.
Agency Contact Person
Steven Sabatke, Wisconsin Department of Commerce, Bureau of Business Finance and Compliance, P.O. Box 7970, Madison, WI, 53707-7970; telephone (608) 267-0762; e-mail Steven.Sabatke@Wisconsin.gov.
Small Business Regulatory Coordinator
The small business regulatory coordinator for the Department of Commerce is Carol Dunn, who may be contacted at telephone (608) 267-0297, or at cdunn@commerce.state.wi.us.
Analysis Prepared by Department of Commerce
Statutes interpreted
Sections 71.07 (3p), 71.28 (3p), 71.47 (3p), and 560.207 – as created in 2007 Wisconsin Act 20.
Statutory authority
Sections 227.11 (2) (a) and 560.207 (4), Stats.
Explanation of agency authority
Section 560.207 (4) of the Statutes requires the Department to promulgate rules for implementing and administering a program to certify applicants and allocate tax credits for the dairy manufacturing investments addressed in sections 71.07 (3p), 71.28 (3p), and 71.47 (3p) of the Statutes. Section 227.11 (2) (a) of the Statutes authorizes the Department to promulgate rules interpreting the provisions of any Statute administered by the Department.
Related statute or rule
The Department has rules for several other programs associated with tax credits, but none of those programs relate specifically to investments in dairy manufacturing facilities. For example, section 560.798 of the Statutes and chapter Comm 118 both refer to the Department's Agricultural Development Zone Program, which provides tax credits to agricultural businesses for job creation, capital investment, and environmental remediation. Those businesses must be located in specific geographic agricultural development zones in the State in order to qualify.
Plain language analysis
The proposed rules in this order specify (1) the eligibility requirements for applicants; (2) the documentation that must be submitted by applicants to become certified as eligible for the dairy manufacturing facility investment credit, and to receive acceptance of incurred expenses for dairy manufacturing modernization or expansion; (3) the Department's response to the submitted documentation; and (4) use of the Department's response when filing a claim with the Department of Revenue for the corresponding tax credit.
Comparison with federal regulations
Neither the Department nor the Department of Revenue is aware of any existing or proposed federal regulations that address these tax credits.
Comparison with rules in adjacent states
Michigan. Michigan provides tax abatement to agricultural processing facilities that qualify for the Agricultural Processing Renaissance Zones (APRZ) program. There are no administrative rules for the program, but guidelines are available through the Michigan Economic Development Corporation's Web site at http://www.themedc. org.
Minnesota. Minnesota offers various tax credit programs, but none that are similar to the dairy manufacturing facility investment credit in Wisconsin.
Iowa. In Iowa, the High Quality Job Creation Program offers tax credits, exemptions and refunds to qualifying businesses to offset the cost incurred to locate, expand, or modernize an Iowa facility. Qualifying businesses must meet several eligibility requirements, including producing value-added goods or being in one of 11 targeted industries. Administrative rules for this program are available in the Iowa Administrative Code, 261-Chapter 68. Further information is available through the Iowa Department of Economic Development Web site at www.iowalifechanging.com.
Illinois. Illinois offers various tax credit programs, but none that are similar to the dairy manufacturing facility investment credit in Wisconsin.
Summary of factual data and analytical methodologies
The data and methodology for developing these proposed rules were derived from and consisted of (1) incorporating the criteria in 2007 Wisconsin Act 20; (2) incorporating applicable best practices the Department has developed in administering similar programs for economic development, business development, and tax-credit verification; (3) soliciting and utilizing input from the Department of Revenue and the Department of Agriculture, Trade and Consumer Protection, and from representatives of the stakeholders who are expected to participate in this program; and (4) reviewing Internet-based sources of related federal, state, and private-sector information.
Analysis and supporting documents used to determine effect on small business
The primary document that was used to determine the effect of the proposed rules on small business was 2007 Wisconsin Act 20. This Act requires the Department to implement a program to certify taxpayers as eligible for the dairy manufacturing facility investment credit under sections 71.07 (3p), 71.28 (3p), and 71.47 (3p) of the Statutes, and requires the Department to promulgate rules for administering the program. The proposed rules apply their private-sector requirements only to dairy manufacturing facilities for which a corresponding tax credit is desired.
Initial Regulatory Flexibility Analysis
Summary
The proposed rules are not expected to impose significant costs or other impacts on small businesses because the rules address submittal of documentation only by applicants who choose to pursue tax credits for dairy manufacturing modernization or expansion activities.
Types of small businesses that will be affected by the rules.
Owners and operators of dairy manufacturing facilities who chose to apply for the tax credits in ss. 71.07 (3p), 71.28 (3p), and 71.47 (3p) of the Statutes, for investing in those facilities.
Reporting, bookkeeping and other procedures required for compliance with the rules.
Applicants for becoming certified as being eligible for the tax credits must submit an application that demonstrates compliance with the criteria specified under the rules.
Types of professional skills necessary for compliance with the rules.
No new professional skills would be needed for compliance with these rules.
Rules have a significant economic impact on small businesses?
No.
Environmental Analysis
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.
Fiscal Estimate
Summary
Although the rules will newly result in review of documentation relating to certifying applicants as eligible to then claim allocated tax credits for investments in dairy manufacturing facilities, the number of these reviews and allocations is expected to be too small to result in significant changes in the Department's costs for administering its business development programs. Therefore, the proposed rules are not expected to have any significant fiscal effect on the Department.
The proposed rules are not expected to impose any significant costs on the private sector, because the rules address only voluntary submittal of documentation relating to tax credits for investments in dairy manufacturing facilities.
State fiscal effect
None
Local government fiscal effect
None
Long-range fiscal implications
None known
Notice of Hearing
Employee Trust Funds
A public hearing will be held to consider a proposed rule revising chs. ETF 10 and 50, relating to termination of employment and administrative leave of absence.
Hearing Information
Date and Time:
Location:
May 22, 2008
1:00 p.m.
Dept. of Employee Trust Funds
Conference Room GB
801 West Badger Road
Madison, WI
Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building.
Agency Contact Person
Please direct any questions about the proposed rule to David Nispel, Deputy Chief Counsel, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707. The email address: david.nispel@etf.state.wi.us. The telephone number is: (608) 264-6936.
Submission of Written Comments
Written comments on the proposed rule may be submitted to David Nispel, deputy chief counsel, department of employee trust funds, 801 W. Badger Road, P. O. Box 7931, Madison, WI 53707. Written comments must be received at the Department Of Employee Trust Funds no later than 4:30 p.m. on Friday, May 23, 2008.
Copies of Proposed Rule
Copies of the proposed rule are available without cost from the Office of the Secretary, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707-7931. The telephone number is: (608) 266-1071.
Analysis Prepared by the Department of Employee Trust Funds
Statute interpreted
Section 40.63, Wis. Stats.
Statutory authority
Sections 40.03 (2) (i) and 227.11 (2) (a), Wis. Stats.
Explanation of agency authority
By statute, the DETF Secretary is expressly authorized, with appropriate board approval, to promulgate rules required for the efficient administration of any benefit plan established in ch. 40 of the Wisconsin statutes. Also, each state agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
Ch. ETF 10, Wis. Admin. Code, concerns the administration of the Public Employee Trust Fund and Ch. ETF 50 concerns disability benefits provided in accordance with the trust fund. Section 40.63, Wis. Stats. concerns disability annuities from the Wisconsin retirement system. There are no other related administrative rules or statutes.
Plain language analysis
The purpose of this rule is to enable participants to continue to receive private benefits offered by their employer, such as health insurance, while they are receiving disability benefits under s. 40.63, Stats.
Comparison with federal regulations
The only federal regulations that may be affected by this proposed rule are provisions of the Internal Revenue Code regulating qualified pension plans. The Wisconsin Retirement System is required to be maintained as a qualified plan by s. 40.015, Stats. As a general rule, pension plans are supposed to provide benefits at retirement. However, federal regulations state that a pension plan may provide for the payment of a pension due to disability. The Wisconsin Retirement System provides for disability annuities under s. 40.63, Stats.
Comparison with rules in adjacent states
The department did not locate any comparable rule or statute in any adjacent states.
Summary of factual data and analytical methodologies
Currently, the department interprets s. 40.63, Stats. to permit a disabled employee, who is on a leave of absence and not expected to return to service, to apply for a disability annuity benefit and to receive such benefits if the employee's application is approved. This practice followed an internal review of the department's policies and the pertinent statutes and administrative rules for administering the s. 40.63 disability benefit program.
This proposed rule addresses the status of disability annuitants with regard to the Wisconsin Retirement System and other fringe benefits under ch. 40, Stats. For example, if a disabled employee is deemed to have terminated employment for all ch. 40 purposes, the effect on that person's health insurance and premiums would vary depending on whether the employer participated in the group insurance board's health insurance under ch. 40 or if the employer offered other health insurance.
Under s. ETF 50.54 (2) (b), long-term disability insurance benefits, which replaced disability annuity benefits for employees not continuously employed since before October 16, 1992, already are available for employees on a leave of absence. This proposed rule will conform the eligibility criteria regarding termination of employment for both disability annuities and long-term disability insurance.
Analysis and supporting documents used to determine effect on small business
The rule does not have an effect on small businesses because private employers and their employees do not participate in, and are not covered by, the Wisconsin Retirement System.
Initial Regulatory Flexibility Analysis
There is no effect on small business.
Fiscal Estimate
The rule codifies current department practice. The rule will have no effect on state funds.
Text of Proposed Rule
SECTION 1. ETF 10.08 (2) (b) 4. is amended to read:
4. Except as provided in ETF 50.30 (4), upon termination of employment the participant is treated consistently with the status of a former employee. This includes, but is not limited to the terminated employee no longer being eligible for benefits available only to active employees. Examples of such benefits may include health insurance, life insurance, income continuation insurance coverage, making deferred compensation or tax sheltered annuity contributions, worker's compensation coverage, internal grievance, promotion or transfer rights, or rights available to active employees under a collective bargaining agreement. This subd. shall not apply to benefits that may be available to the employer's retired employees, such as severance pay, post-retirement insurance coverage and/or employer payment of premiums, or post-retirement benefits or other rights provided through collective bargaining or other retirement agreements. However, agreements made after the termination date for future compensable services to be rendered by the employee would not be precluded under subd. 3.
SECTION 2. ETF 50.30 (4) is created to read:
(4) To be eligible for disability benefits under s. 40.63, Stats., a participant must terminate all participating employment. For disability benefits under s. 40.63, Stats., “termination of employment" means that the participant has ceased to be a participating employee on the termination date that the employer reports to the department for the purpose of all benefits administered under ch. 40, Stats. Such benefits include health insurance coverage and sick leave credit usage, life insurance coverage, income continuation insurance coverage, Wisconsin retirement system coverage and death benefits under s. 40.73 (1) (am) and (c), and making deferred compensation contributions under s. 40.80, Stats. A termination of employment under this subs. does not preclude a participating employer from placing the participant on an administrative leave of absence as long as the employee is not expected to resume active service.
Proposed Effective Date
This rule shall take effect on the first day of the month commencing after the date of publication in the Wisconsin administrative register as provided by s. 227.22 (2) (intro.), Stats.
Notice of Hearing
Health and Family Services
Management and Technology and Strategic Finance,
Chs. HFS 1
NOTICE IS HEREBY GIVEN that pursuant to s. 46.287 Stats., and interpreting s. 46.286 (3) (a) Stats., as revised by 2007 Wisconsin Act 20, the Wisconsin Department of Health and Family Services will hold a public hearing on emergency rules amending ss. HFS 10.55 (1) and 10.56 (2) and creating ss. HFS 10.55 (1m) and 10.56 (2m), relating to fair hearings, and continuation of benefits pending the outcome of a grievance, Department review, or fair hearing under the Family Care program at the date, time, and location listed below.
Hearing Information
Date and Time
Location
May 12, 2008
1:00 - 2:00 p.m.
Dept. of Health and Family Services
1 West Wilson Street
Room 518B
Madison, Wisconsin
The hearing site is fully accessible to people with disabilities. If you are hearing impaired, do not speak English or have circumstances that might make communication at a hearing difficult; you require an interpreter or a non-English large print or taped version of the proposed rules, contact the person at the address or telephone number given below at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Submission of Written Comments
Written comments may be submitted at the public hearing or submitted to the contact person listed below. Comments may also be made using the Wisconsin Administrative Rule Website at http://adminrules.wisconsin.gov.
The deadline for submitting comments to the Department is 4:30 p.m. on May 18, 2008.
Copies of Proposed Rules
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 person listed below.
Agency Contact Person
Charles Jones
Division of Long Term Care
1 W. Wilson St., Room 518
P.O. Box 7851
Madison, WI 53707-7851
Phone: (608) 266-0991
TTY: (888) 241-9432
Analysis Prepared by the Department of Health and Family Services
Statute interpreted
Section 46.287, Stats.
Statutory authority
Section 46.286 (3) (a), Stats., as revised by 2007 Wis. Act 20.
Explanation of agency authority
The 2007-2009 Biennial Budget (2007 Act 20) eliminates the entitlement to Family Care non-Medicaid eligibility. In addition, the federal Centers for Medicare and Medicaid Services has restricted the Family Care benefit for enrollees at the non-nursing home level of care.
Related statute or rule
Section 46.287, Stats.
Plain language analysis
There are two changes in federal and state policy that precipitate this emergency rulemaking.
First, non-Medicaid entitlement to Family Care benefits was eliminated under 2007 Act 20. Consequently, persons who are currently enrolled in the Family Care program but who are ineligible for Medicaid benefits will be disenrolled from the Family Care program, unless they become eligible for Medicaid benefits on or before July 1, 2008. Non-Medicaid eligible persons enrolled on December 31, 2008, may stay enrolled until June 30, 2008, in order to have time to attain Medicaid eligibility. The Department, the Family Care managed care organizations, and the local aging and disability resource centers will assist individuals in that attempt. The Department will provide notice to individuals subject to disenrollment under 2007 Act 20.
Second, the federal Centers for Medicare & Medicaid Services has restricted the Family Care benefit for persons at the non-nursing home level of care. Individuals at the non-nursing home level of care are no longer entitled to receive the home and community-based services more typically provided to people who do have a nursing home level of care and, therefore, may have some services reduced or terminated because of the change in CMS policy. The Department will provide notice of reduction or termination to these individuals.
Section HFS 10.55 provides enrollees with a right to a fair hearing when services are reduced or terminated, or eligibility is denied. In addition, s. HFS 10.56 (2) provides that enrollees whose Family Care benefits are reduced or terminated have a right to have their current services continued pending the outcome of a grievance, Department review, or fair hearing. If a person notified of the elimination of the non-Medicaid benefit in Family Care or a reduction of services because of the change in benefit for people at the non-nursing home level of care appealed and requested continuation of services, under the current rules a hearing and continuation of services would have to be granted.
However, persons who are non-Medicaid eligible who appeal the loss of services will lose the appeal, because the loss of benefits is due to a change in state law, which makes it clear that the Family Care benefit is no longer available to them. Similarly, persons who have a non-nursing home level of care who have home and community-based services reduced or terminated as a result of the change in the available benefit will lose, because the CMS policy change in the benefit package makes it clear that such individuals are no longer entitled to those services. Holding a fair hearing in these situations would be an inefficient use of resources for the participant, the Department, and the Division of Hearings and Appeals.
If either group receive continuation of services during a fair hearing, Department review, or grievance and lose they will be responsible to pay for the cost of the services provided pending the outcome of the fair hearing, Department review, or grievance. The cost to the individual could amount to thousands of dollars. Such a situation would be detrimental to the welfare of affected individuals and should be prevented.
The Department has issued an emergency order providing an exception to the right to a fair hearing and continuation of services during a fair hearing, grievance, or Department review when Family Care benefits are reduced or terminated by an act of the federal government or the state legislature and the individual whose benefits have been terminated or reduced does not dispute that he or she falls within the category of persons for whom the benefit was reduced or terminated.
Comparison with federal regulations
There are similar provisions in Medicaid rules at 42 CFR §431.220(b), which provides that the State Medicaid Agency “need not grant a hearing if the sole issue is a Federal or State law requiring an automatic change adversely affecting some or all recipients." And, at 42 CFR § 431.230(a)(1), which provides that individuals have a right to continuation of services pending the outcome of an appeal unless, “it is determined at the hearing that the sole issue is one of Federal or State law or policy."
Comparison with rules in adjacent states
Illinois: does not have a program similar to Family Care.
Iowa: does not have a program similar to Family Care.
Michigan: does not have a program similar to Family Care.
Minnesota: does not have a program similar to Family Care.
Summary of factual data and analytical methodologies
The Department reviewed 2007 Act 20, and the policy change by the Center for Medicare and Medicaid Services. The Department also assessed the adverse impact of these changes on the individuals affected.
Analysis and supporting documents used to determine effect on small business
The rules would not have an effect on businesses.
Initial Regulatory Flexibility Analysis
The rules would not have an effect on businesses.
Small Business Regulatory Coordinator
Rosie Greer
608-266-1279
Fiscal Estimate
The revised rule will result in an indeterminate decrease in costs to the Department and to Family Care managed care organizations (MCOs). Some MCOs are units of county government. Some MCOs are private non-profit organizations, which are not small businesses. The decrease in costs to the Department and to MCOs will result from not being required to assign staff to conduct or participate in fair hearings in which the appellant cannot be successful. In addition, MCOs may have decreased costs because they will not be required to continue to provide services during an appeal in which the appellant cannot be successful.
Notice of Hearing
Insurance
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., the Office of the Commissioner of Insurance will hold a public hearing to consider the adoption of the proposed rules revising sections Ins 3.455 and 3.46, Wis. Adm. Code, relating to long-term care plans including the plans qualifying for the Wisconsin long-term care insurance partnership program and affecting small business.
Hearing Information
Date:   May 12, 2008
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
Submission of Written Comments
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in the Notice of Hearing.
Mailing address:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 34556
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 34556
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Email address:
Julie E. Walsh
Comments submitted through the Wisconsin Administrative Rule Web site at: http://adminrules. wisconsin.gov on the proposed rule will be considered.
Copies of Proposed Rule and Agency Contact Person
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, Public Information and Communications, OCI, at: inger.williams@wisconsin.gov, (608) 264-8110, 125 South Webster Street – 2nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Small Business Regulatory Coordinator
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266-7843 or at email address eileen.mallow@wisconsin.gov
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
Statutes interpreted
Sections 600.01, 601.415 (8), and 628.34 (12), 628.348, Stats.
Statutory authority
Explanation of agency authority
The OCI, in order to comply and implement the requirements of 2007 Wis. Act 20, creating the Wisconsin Long-Term Care Insurance Partnership Program (Partnership Program) including the requirements for intermediary training and the process by which insurers submit policies that are intended to qualify for the Partnership Program must adopt the 2000 and 2006 National Association of Insurance Commissioners (NAIC) Long-Term Care Insurance Model Act and Model Laws, pursuant to the Deficit Reduction Act of 2005 (Pub.L. 109-171) (DRA). These amendments are needed to expand consumer protection and comply with the requirements of the Center for Medicare and Medicaid Services (CMS) as delegated to the NAIC the function of regulating the insurers offering long-term care insurance products.
Related statutes or rules
The Partnership Program is described at s. 49.45 (31), Stats., and requires coordination between the OCI and the Department of Health and Family Services.
Plain language analysis
The current administrative rule was last revised in 2001 and is not fully compliant with the NAIC Long-Term Care Model Act and NAIC Long-Term Care Model Law (NAIC Model Act and Model Law). When 2007 Wis. Act 20 created the Partnership Program, the OCI is required to implement the NAIC Model Act and Model Law in order for insurers to offer policies compliant with the DRA. Significant portions of the proposed rule update and expand definitions and require disclosure of these definitions to insureds so that they understand how the long-term care, home health care or nursing home insurance policy is able to be used and the limitations or exclusions that may be applied by insurers.
In section 3.455, the modifications primarily address the conversion from a group long-term care insurance policy to an individual long-term care insurance policy. The expanded information is intended to both comply with the NAIC Model Act and Model Law and Wisconsin conversion and continuation law. The section also includes expanded definition related to conversion of long-term care insurance policies.
Section 3.46 modifications begin with updated and revised definitions that are intended to provide consumers with greater specificity regarding terms used within long-term care, home health care and nursing home care insurance policies. Of note the current NAIC Model Act and Model Law do not exempt group long-term care insurers and as such the exemption in s. 3.46 (2) has been struck. Consumer protection elements are introduced or existing protections expanded throughout this section. One tool to both provide a check on the industry and its intermediaries and better assist consumers with the purchase of long-term care, home health care or nursing home care insurance is through the consolidation and expansion of the marketing requirements. Intermediaries and insurers are required to report on their prior dealings with consumers and state that the policy being sold is an appropriate product for that person. Although similar tools are currently required, the expansion requires additional data reporting to the OCI so that as the regulator we are provided a clearer picture of what sales are occurring and trends in the marketplace. The information will also highlight for both OCI and the insurers contracting with intermediaries information that may reveal unacceptable practices including high pressure sales tactics or interactions with persons resulting in a higher rate of complaints than other intermediaries. Appropriateness of each sale is to be reviewed and must meet the insurer's guidelines.
Additionally, some of the modifications reflect changes in our society, for instance the recognition and use of the internet or on-line completion of applications. Also, nonforfeiture of benefits provisions reflect the increasing cost of long-term care and the affect those increases have on the insureds. Some seniors, at a time near to when the policy may be most useful are least able to afford premium increases. Nonforfeiture of benefits or contingent nonforfeiture provisions allow those who have paid premiums for many years benefits even after they are no longer able to keep their policy enforce.
New paragraphs are also added regarding upgrade and down-grades of policies, and expanded disclosure requirements are included for various benefits including nonforfeiture benefits. These modifications reflect the marketplace and include oversight provisions. These types of benefits potentially give consumers greater control and options when faced with increasing premiums rather than just lapsing the policy due in part to financial constraints. Expanded notification to insureds of new benefits or changing access to providers is also contained in this proposed rule, a modification that allows insureds options that they may not previously been informed of or had access to from within the same carrier. Requirements monitoring replacement of policies is also expanded to enhance oversight of actions by intermediaries and insurers.
Finally, s. 3.46 includes a new section related to initial and on-going intermediary training for long-term care insurance products. In part, this provision delineates training requirements related to the Wisconsin Partnership Program, but is required for all intermediaries offering, selling or negotiating long-term care contracts. Insurers are required to verify compliance to the OCI and OCI assure the Department of Health and Family Services that the intermediaries dealing with Wisconsin consumers are aware of the unique programs available in Wisconsin.
Section 3.465 is newly created to implement the requirements of the Wisconsin Long-Term Care Insurance Partnership Program. This section contains minimum inflation protection percentage increases by age as outlined by the federal government in order for the policies offered by insurers both meet the requirements of the Deficit Reduction Act of 2005 (Pub.L. 109-171). The section also delineates when and how insurers exchange existing long-term care insurance policies for policies that are intended to qualify for the Partnership Program in both the individual and group market. Appendices outline various notices that are to be provided to consumers at the time of solicitation and again at the point of sale. These are intended to educate the consumer so that the may be better able to make informed decisions.
Comparison with federal regulations
It is understood that CMS is anticipating promulgating rules related to the reciprocity of the Partnership Program. Those rules are not anticipated to affect OCI.
Comparison of rules in adjacent states
Illinois: Illinois adopted NAIC Model Act and Law in January 2003 with no substantive deviations. Illinois noticed proposed regulations in compliance with the 2006 NAIC Model Act and Law on August 3, 2007, without substantive deviations. Illinois HB 517 authorizing the Medicaid Office to file the review State Partnership Application for participation in the Partnership Program on August 16, 2007.
Iowa: Iowa adopted the 2000 version of the NAIC Model Act and Model Law in July 2003. With the exception of the intermediary training that Iowa promulgated effective January 1, 2009, the state has notice proposals to adopt the 2006 NAIC Model Act and Law. The requirement for intermediary training requires 4 hours of initial training and 3 hour on-going training every 3 years thereafter. Iowa has not implemented the Partnership Program in accordance with the DRA as yet.
Michigan: Michigan adopted the 200 version of the NAIC Model Act and Law in June 2007. Michigan regulates long-term care insurance by statute and as such did not adopt exact language as the NAIC Model but did incorporate each area covered by the Model. Michigan did enact authorizing legislation to implement the Partnership Program in 2007 and filed its State Partnership Application retroactive to October, 2007. Michigan has not implemented the intermediary training for all intermediaries and is currently formalizing the process.
Minnesota: Minnesota adopted the 2000 NAIC Model Act and Law in January 2002, without substantial deviation. The DRA, Partnership Program became effective July 1, 2006. However there has been delays it was not operational until October 2007. Minnesota adopted the intermediary training and additionally requires non-resident intermediaries demonstrate knowledge of unique aspects of the Minnesota medial assistance program.
Summary of factual data and analytical methodologies
The OCI was required to implement portions of the Partnership Program in compliance with 2007 Wis. Act 20, and utilized a subcommittee comprised of consumer, industry, intermediary and regulatory members to achieve its duty. The group met, in open meetings, two times in the past two months to review and discuss Partnership drafts proposed by the OCI.
For the provisions updating and incorporating the NAIC models, the OCI reviewed each NAIC provision against existing Wisconsin law and rule to ensure consumer protections were not lost in the process and to expand consumer information.
Analysis and supporting documentation used to determine effect on small business
The key provision that may have an effect on small businesses is the requirement for long-term care intermediary initial and on-going training. The OCI included a provision to permit the training to qualify as continuing education credits and to recognize courses non-resident intermediaries may take in states other than Wisconsin. With the exception of two-credit hours that must include the training information developed and maintained by the Department of Health and Family Services, the training requirements allow for the greatest flexibility to not unduly burden intermediaries or unnecessarily increase expenses related to receiving the required training. It is expected, in light of these considerations that if there is any effect, the effect on small businesses will not be significant.
Description of the effect on small business
This rule will have little or no effect on small businesses.
Initial Regulatory Flexibility Analysis
This rule does not impose any additional requirements on small businesses.
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:
Types of small businesses affected
Insurance agents.
Description of reporting and bookkeeping procedures required
None beyond those currently required.
Description of professional skills required
None beyond those currently required.
Fiscal Estimate
State fiscal effect
None
Local fiscal effect
None
Long-range fiscal implications
None
Notice of Hearing
Natural Resources
Fish, Game, etc., Chs. NR 1
EmR0808 (FH-40-07A(E))
NOTICE IS HEREBY GIVEN that pursuant to ss. 23.09 (2) (intro.), 23.091, 23.11 (1), 23.22 (2) (a) and (b) 6., 27.01 (2) (j), 29.014 (1), 29.041, 29.039 (1), 29.509 (4) and (5), 227.11 (2) (a) and 227.24 (1) (a), Stats., interpreting ss. 23.09 (2) (intro.), 23.22 (2) (a), 29.014 (1), 29.039 (1), 29.041 and 227.11 (2) (a), Stats., the Department of Natural Resources will hold a public hearing on Natural Resources Board Emergency Order No. FH-40-07A(E) which took effect on April 4, 2008.
Hearing Information
NOTICE IS HEREBY FURTHER GIVEN that the hearing will be held on:
May 12, 2008
Monday
11:00 a.m.
Room 405
GEF #2 State Office Building
101 South Webster Street
Madison
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Bill Horns at (608) 266-8782 with specific information on your request at least 10 days before the date of the hearing.
Submission of Comments and Copies of Rule
The emergency rule and fiscal estimate may be reviewed and comments electronically submitted at the following Internet site: http://adminrules.wisconsin.gov.
Written comments on the proposed rule may be submitted via U.S. mail to Mr. Bill Horns, Bureau of Fisheries Management and Habitat Protection, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until May 16, 2008. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. A personal copy of the proposed rule and fiscal estimate may be obtained from Mr. Horns.
Analysis Prepared by the Dept. of Natural Resources
FH-40-07A(E) revises chs. NR 19 and 20, Wis. Adm. Code, pertaining to control of fish diseases and invasive species, as affected by Natural Resources Board Emergency Order No. FH-40-07(E), which took effect on November 2, 2007. FH-40-07A(E) deals with viral hemorrhagic septicemia (VHS) virus, which is present in Wisconsin waters.
FH-40-07A(E) will:
1. Allow anglers to retain minnows after a fishing trip if the minnows were obtained from a Wisconsin bait dealer and have not been exposed to the water or fish of the lake or stream, or the minnows were obtained from a Wisconsin bait dealer and will subsequently be used for bait only on that same water body.
2. Allow up to 2 gallons of water in a container holding those minnows to be transported away from the water body.
3. Prohibit the harvest of minnows (except suckers) from any water body where the Department has reason to believe that the VHS virus may be present (as identified by the Department).
4. Allow suckers to be harvested from those waters, but not be transported alive away from those waters.
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss. 85.15 (1), 218.0152 and 227.11, Stats., interpreting Subchapter 1 of Chapter 218, Stats., the Department of Transportation will hold a public hearing to consider the amendment of chs. Trans 137, 138 and 139, Wis. Adm. Code, relating to motor vehicle dealer franchise operations, record keeping and trade practices.
Hearing Information
May 13, 2008
10:00 a.m.
Hill Farms State Transportation Bldg.
Room 254
4802 Sheboygan Avenue
Madison, WI
An interpreter for the hearing impaired will be available on request for this hearing. Please make reservations for a hearing interpreter at least 10 days prior to the hearing.
Parking for persons with disabilities and an accessible entrance are available.
Agency Contact Person, Submission of Written Comments, Copies of Proposed Rule
The public record on this proposed rule making will be held open until close of business the day of the hearing to permit the submission of comments in lieu of public hearing testimony or comments supplementing testimony offered at the hearing. Any such comments should be submitted to Carson Frazier, Department of Transportation, Bureau of Vehicle Services, Room 255, P. O. Box 7911, Madison, WI 53707-7911. You may also contact Ms. Frazier by phone at (608) 266-7857 or via e-mail at: carson.frazier@dot.state. wi.us.
To view the proposed amendments to the rule, view the current rule, and submit written comments via e-mail/internet, you may visit the following website: http://www.dot.wisconsin.gov/library/research/law/rulenotices.htm.
Analysis Prepared by the Department of Transportation
Statutes interpreted
Subchapter 1 of Chapter 218, Stats.
Statutory authority
Sections 85.16 (1), 218.0152 and 227.11, Stats.
Explanation of agency authority
The Wisconsin Department of Transportation is authorized to license and regulate motor vehicle dealers and their trade practices. This rule making controls motor vehicle dealer trade practices, record keeping, and relevant definitions.
Related statute or rule
Chs. 218, 341, 342 and 429, Stats., chs. Trans 137, 138 and 139, Wis. Adm. Code.
Plain language analysis
This rule amendment makes several additions to chs. Trans 137, 138 and 139, regarding motor vehicle dealer requirements under Chapter 218, Wis. Stats. The rule additions clarify several authorized and prohibited actions by dealers, most of which the Department has previously clarified in policy.
1. Explicitly define in chs. Trans 137, 138 and 139 a “title" as a title in s. 342.10, Stats. While common understanding of the term has long prevailed, this will make the meaning clear.
2. Create a definition in ch. Trans 139 of “bird dogging," i.e., referral selling, and explicitly prohibit this practice. While this practice is prohibited in statute, which governs dealer behavior, DOT believes it would be appropriate to repeat the statutory prohibition in rule and elaborate on statutory definition.
3. In ch. Trans 138, clearly allow multi-location dealership records to be kept at a single location, with proper availability for inspection. This is implicit in rule reference to a dealership, and is currently allowed by DMV policy, but it would appropriate to state explicitly, and to clarify what constitutes a single dealership with multiple locations as opposed to separate dealerships.
4. Amend the ch. Trans 137 definition of “used motor vehicle" to include rental or leased vehicles with 4,000 or fewer miles that have been damaged. The current definition effectively treats these vehicles as “new" for the purpose of needing a franchise to sell the vehicles.
5. Amend ch. Trans 139 to allow, instead of currently prohibit, the use of motor vehicle pricing guides (such as Kelly Blue Book or Edmuonds guide) as price comparison in advertising used vehicle prices.
6. Amend the ch. Trans 138 requirement that dealers have in their possession the title for any vehicles they offer for sale to exclude title of a manufacturer buy-back under the lemon law, instead allowing a dealer to have in its possession a copy of the title. Wis. Stat. 218.0171(2)(d) requires that no manufacturer buy-back may be sold or leased to a new customer unless the manufacturer buy-back condition is fully disclosed to that customer. To protect themselves from liability, manufacturers have developed a disclosure form that they require dealers to submit to them before they will release the title to the dealer. In the meantime, the dealer keeps a copy of the title in its possession. DMV allows this by policy, and DMV wishes to clarify this in rule.
7. Amend ch. Trans 139 to clarify that if the dealer proposes to make changes to the warranty and service contract language in the Buyers Guide or in the Purchase Contract, the dealer shall send the proposed changes to DOT, which will reply within a certain time frame approving or denying the changes.
Comparison with federal regulations
Wisconsin statutes and rules govern motor vehicle dealer sales practices and recordkeeping. No federal regulations apply to these policies.
Comparison with rules in adjacent states
Most of the proposed provisions are already DOT policy. With regard to the newly proposed provisions:
Michigan:
1. Michigan would consider a damaged rented or leased vehicle a “used" vehicle, similar to what DOT proposes in this rule making.
2. Michigan does not have regulations on this point, and thus would allow use of pricing guide, similar to what DOT proposes in this rule making.
3. Michigan regulations do not require verbatim language or approval of language in the purchase contract or disclosure statements, unlike Wisconsin current or proposed regulations.
Minnesota:
1. Minnesota would consider a damaged rented or leased vehicle a “used" vehicle, similar to what DOT proposes in this rule making.
2. Minnesota regulations regarding advertising are unclear to DOT, as the Minnesota Department of Public Safety does not regulate advertising.
3. Minnesota regulations do not require verbatim language or approval of language in the purchase contract or disclosure statements, unlike Wisconsin current or proposed regulations.
Illinois:
1. Illinois would consider a damaged rented or leased vehicle a “new" vehicle, similar to Wisconsin's current rule.
2. Illinois would allow use of pricing guide, similar to what DOT proposes in this rule making.
3. Illinois regulations require documents to comply with specific state law, similar to Wisconsin's current rule.
Iowa:
1. Iowa would consider a damaged rented or leased vehicle a “used" vehicle, similar to what DOT proposes in this rule making.
2. Iowa Attorney General's office does not review advertising related to car price.
3. Iowa regulations do not require verbatim language or approval of language in the purchase contract or disclosure statements, unlike Wisconsin current or proposed regulations.
Summary of factual data and analytical methodologies
Most of the proposed provisions are already DOT policy. The following provisions are newly proposed:
1. Amend the ch. Trans 137 definition of “used motor vehicle" to include rental or leased vehicles with 4,000 or fewer miles that have been damaged. The Department has received several inquiries during the past few years from rental and leasing companies that need to dispose of damaged vehicles. The Department has concluded that allowing this exception to the new vehicle definition, for purposes of needing a franchise to sell, will not adversely affect franchised motor vehicle dealers.
2. Amend ch. Trans 139 to allow, instead of currently prohibit, the use of motor vehicle pricing guides (such as Kelly Blue Book or Edmunds guide) as price comparison in advertising used vehicle prices. This has been considered an unfair trade practice because price guides may not sufficiently account for vehicle condition. However, the Department recognizes that these pricing guides are readily accessible on the internet and in print, and consumers often make use of them. The Department proposes to couple allowing use of price guides with requirements for dealer disclosure of vehicle condition sufficient to protect a customer from making false inference about the vehicle's actual sales price and thus being taken in by false advertising.
3. Amend ch. Trans 139 to clarify that if the dealer proposes to make changes to the warranty and service contract language in the Buyers Guide or in the Purchase Contract, the dealer shall send the proposed changes to DOT, which will reply within a certain time frame approving or denying the changes. The Department recognizes that the vehicle manufacturing industry now offers “manufacturer certified used vehicle programs," which carry certain warranties; and current ch. Trans 139 does not sufficiently accommodate new industry practices. However, the Department proposal retains DOT authority to determine, on a case-by-case basis, an adequate disclosure to the consumer of warranty provisions if they differ from mandatory language in ch. Trans 139.
Analysis and supporting documentation used to determine effect on small businesses
The Department bases the determination of effect on small businesses on comments, questions, and petitions and requests for regulation changes that the Department has received from motor vehicle dealers and their trade association, rental and leasing companies.
Initial Regulatory Flexibility Analysis
Most provisions are already in Department policy. For those that are not currently in policy, the proposals will ease regulatory requirements and costs on motor vehicle dealers and vehicle rental and leasing companies. The Department enforces statute and rules through periodic auditing of motor vehicle records, inspection of motor vehicle dealership facilities, and investigation of consumer complaints. The Department's Regulatory Review Coordinator may be contacted by e-mail at ralph.sanders@dot.state.wi.us, or by calling (414) 438-4585.
Fiscal Estimate
The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands.
Anticipated costs incurred by private sector
The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.
Notice of Hearing
Workforce Development
Family Supports, Chs. DWD 12-59
NOTICE IS HEREBY GIVEN that pursuant to ss. 49.148, 49.153 (2), 103.005 (17), and 227.11 (2), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules revising chapter DWD 12, relating to W-2 sanction good cause exceptions and notice of payment reductions and affecting small businesses.
Hearing Information
May 15, 2008
MADISON
Thursday
1:30 p.m.
G.E.F. 1 Building
Room A415
201 E. Washington Avenue
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 an alternative format will be made available on request to the fullest extent possible.
Interested persons are invited to appear at the hearing 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.
Copies of Proposed Rule and Submission of Written Comments and
An electronic copy of the proposed rules is available at http://www.dwd.state.wi.us/dwd/hearings.htm.
A copy of the proposed rules is also available at http://adminrules.wisconsin.gov. 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 or fiscal estimate by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written comments on the proposed rules received at the above address, email, or through the http://adminrules. wisconsin.gov web site no later than May 16, 2008, will be given the same consideration as testimony presented at the hearing.
Agency contact person
Margaret McMahon, W-2 Policy Section, margaret.mcmahon@dwd.state.wi.us, (608) 266-5899.
Analysis Prepared by the Department of Workforce Development
Statutory authority
Sections 49.148, 49.153 (2), 103.005 (17) and 227.11 (2), Stats.
Statutes interpreted
Sections 49.148, 49.151, and 49.153, Stats.
Related statute or rule
Explanation of agency authority
Section 49.153 (1), Stats., as created by 2005 Wisconsin Act 25, provides that before taking any action against a Wisconsin Works (W-2) participant that would result in a 20 percent or more reduction in the participant's benefits or in termination of the participant's W-2 eligibility, a W-2 agency must provide the W-2 participant with written notice of the proposed action and the reasons for the proposed action; make reasonable attempts to explain to the W-2 participant orally in person or by phone the reasons for the proposed action; and allow the participant a reasonable time to rectify the deficiency, failure, or other behavior to avoid the proposed action. Section 49.153 (2), Stats., provides that the Department shall promulgate rules that establish the procedures for the notice and explanation and that define “reasonable attempts" and “reasonable time" as used in s. 49.153 (1), Stats.
Section 49.148, Stats., provides that for every hour that a W-2 participant in a community service job or transitional placement fails to participate in an assigned activity without good cause, the participant's grant amount shall be reduced by $5.15. Good cause is to be determined by the W-2 financial and employment planner (FEP) in accordance with rules promulgated by the department. Good cause shall include required court appearances for a victim of domestic abuse.
Section 49.151, Stats., provides that a participant who refuses to participate 3 times in any W-2 employment position component is ineligible to participate in that component. Among other ways, a participant demonstrates a refusal to participate by failing to appear for an interview or an assigned activity without good cause as determined by the W-2 agency or voluntarily leaves appropriate employment or training without good cause as determined by the W-2 agency.
Plain language analysis
The proposed rule on notice of W-2 payment reductions provides that before taking any action against a participant that would result in a 20 percent or more reduction in the participant's benefits or in termination of the participant's eligibility to participate in Wisconsin Works due to noncooperation with W-2 program requirements, a W-2 agency shall provide to the participant written notice of the proposed action and of the reasons for the proposed action. The written notice of a 20 percent or more reduction in the participant's benefits shall be issued by the W-2 agency no later than the first business day following notification to the W-2 agency of participants subject to a potential 20 percent or more payment reduction. The notice of termination of W-2 eligibility shall be issued no later than 10 days prior to the end of eligibility.
Within 5 business days after providing written notice, the W-2 agency shall explain to the participant orally in person or by phone, or make reasonable attempts to explain to the participant orally in person or by phone, the proposed action and the reasons for the proposed action. Reasonable attempts means at least 2 attempts to contact the participant orally in person or by phone. The explanation by the W-2 agency will inform the participant which requirements were not met or which activities were missed that resulted in a 20 percent or more reduction or termination of eligibility; discuss the participant's reasons for not complying with participation requirements or not cooperating with other program requirements; explain the opportunity to present good cause for failing to participate or cooperate; and inform the participant of the right to appeal the agency decision, if necessary.
After providing the notice and the explanation or attempting to provide an explanation, the W-2 agency shall allow the participant a reasonable time to rectify the deficiency, failure, or other behavior to avoid the proposed action. For purposes of this paragraph, “reasonable time" means 7 business days after the oral notification or after the last attempt to make oral notification.
In addition, the Department proposes to amend the rule on good cause for failing to comply with W-2 participation requirements. The current rule provides that good cause for failing to comply with the W-2 participation requirements includes a required court appearance including a required court appearance for a victim of domestic abuse, unavailability of child care that is necessary to participate in required activities, and other circumstances beyond the control of the participant as determined by the FEP. The W-2 participant must provide timely notification of the good cause reason to the FEP.
The proposed rule adds the following circumstances as good cause for not complying with W-2 participation requirements:
  Lack of transportation with no reasonable alternative, as determined by the FEP. In determining the reasonableness of transportation alternatives, the FEP shall consider the length of the participant's commute, participant safety, the cost of the transportation relative to the participant's income, and other relevant factors.
  Participant or W-2 group member's illness, injury, disability, or incapacity.
  Accommodations that have been determined necessary in a formal assessment are not available to allow the participant to complete the assigned activity.
  Conflict with another assigned W-2 activity or job search attempts.
  Inclement weather that impedes transportation or travel.
  School emergency.
  Domestic violence issues.
  Observance of a religious holiday.
  Routine medical or school appointments that cannot be scheduled at times other than during assigned activities.
  Child's school holiday, excluding summer break.
  Any day that the worksite or training site is closed due to a site-specific holiday.
  Death in the participant's immediate family. Immediate family means a participant's spouse, nonmarital co-parent, step-parents, grandparents, foster parents, children, step-children, grandchildren, foster children, brothers and their spouses, sisters and their spouses, aunts, uncles, sons-in-law, daughters-in-law, cousins, nieces and nephews of the participant or the participant's spouse or nonmarital co-parent, and other relatives of the participant or the participant's spouse or nonmarital co-parent if these other relatives reside in the same household as the participant. A participant may be granted good cause for no more than 3 business days if only local travel is necessary to attend the funeral services. A participant may be granted good cause for no more than 7 business days if long-distance travel is required to attend the funeral services. In general, the good cause period may not exceed the week following the death of a member of the participant's immediate family, but the FEP may lengthen the timeframe for good cause depending upon individual circumstances.
  Other circumstances beyond the control of the participant, but only as determined by the FEP. The FEP shall consider what a reasonable employer may allow under its absence policy and hardships that make completing activities and notifying the agency of missed activities more difficult for W-2 participants.
The participant shall notify the FEP of the good cause reason within 7 business days after an absence from a required activity to prevent a payment reduction. A FEP may request written documentation before accepting a good cause reason for a participant's absence from required activities if the participant has a pattern of absences of more than 3 consecutive days or more than 5 days in a rolling 30-day period and the FEP has reason to believe that the participant is misusing the good cause policy. An absence means being absent from any one required activity. A pattern of absences may include past absences for which a good cause reason was accepted.
Summary of factual data and analytical methodologies
The proposed rule on notice of W-2 payment reductions or loss of eligibility is based on requirements in s. 49.153, Stats., as created by 2005 Wisconsin Act 25. In order to meet the statutory requirement that written and oral notification be made prior to taking action regarding sanctions or case closures, the Department had to implement stringent timeframes to ensure that these notifications occur before the action is finalized in the Client Assistance for Re-employment and Economic Support (CARES) automation system. Prior to this statutory change, participant notifications took place after the action had already been taken.
The proposed good cause amendments are based on the recommendations in the W-2 Sanctions Study released by the Department in December 2004 and the Temporary Assistance to Needy Families (TANF) rules issued February 5, 2008. The purpose of the W-2 Sanctions Study was to provide information to support the Department's commitment to ensure that W-2 sanctions are not applied due to factors such as an individual's race, ethnicity, geographic location, employment barriers, or other issues that have not been adequately identified or addressed by the participant's FEP. The W-2 Sanctions Study incorporated the findings of a steering committee that consisted of W-2 agency administrators, state administrators, representatives of client advocacy groups, and academics.
Comparison with federal regulations
If an individual refuses to engage in required work, the state must reduce or terminate the amount of assistance payable to the family, subject to any good cause or other exceptions the state may establish. The state must, at a minimum, reduce the amount of assistance otherwise payable to the family pro rata with respect to any period during the month in which the individual refuses to work. The state may impose a greater reduction, including terminating assistance. A state may not reduce or terminate assistance for a single custodial parent caring for a child under age six if appropriate and affordable child care is unavailable within a reasonable distance from the parent's home or worksite.
The TANF rules issued February 5, 2008, provide that a state may count a participant's excused absences for holidays and a maximum of 10 additional days of excused absences in any 12-month period in the federal participation rate. The rule commentary explains that this policy takes into consideration varying worksite and educational practices as well as unexpected events that cause a worksite to close or an individual to miss scheduled hours. A state's flexibility to excuse other absences is not limited. The required federal participation rate is 50 percent to allow the state to balance the goals of the program, the needs of the family, and obligations under the Americans with Disabilities Act.
Comparison with rules in adjacent states
Minnesota. When a participant fails without good cause to comply with program requirements, a notice of intent to sanction is sent to the participant specifying the requirements that were not complied with, informing the participant that the county agency will impose the sanctions if the participant does not come into compliance within a minimum of 10 days, specifying what must be done to come into compliance, and informing the participant of the opportunity to request a fair hearing or conciliation conference. Within the 10 days, the participant may prevent a sanction by complying with program requirements, demonstrating that she is already in compliance, showing good cause for not complying with the requirements, or requesting a fair hearing or conciliation conference. If the participant does not do any of these within 10 calendar days of the mailing of the notice of intent to sanction, the job counselor must notify the county agency that the assistance payment should be reduced. The county must send a notice of adverse action to the participant at least 10 days before a sanction is imposed. The notice must inform the participant of the sanction that will be imposed, the reasons for the sanction, the effective date of the sanction, and the participant's right to have a fair hearing. If the participant requests a fair hearing or a conciliation conference, sanctions will not be imposed until there is a determination of noncompliance.
Good cause for failure to comply with program requirements exists when:
(1) appropriate child care is not available;
(2) the job does not meet the definition of suitable employment;
(3) the participant is ill or injured;
(4) a member of the assistance unit, a relative in the household, or a foster child in the household is ill and needs care by the participant that prevents the participant from complying with the employment plan;
(5) the participant is unable to secure necessary transportation;
(6) the participant is in an emergency situation that prevents compliance with the employment plan;
(7) the schedule of compliance with the employment plan conflicts with judicial proceedings;
(8) a mandatory MFIP meeting is scheduled during a time that conflicts with a judicial proceeding or a meeting related to a juvenile court matter, or a participant's work schedule;
(9) the participant is already participating in acceptable work activities;
(10) the employment plan requires an educational program for a caregiver under age 20, but the educational program is not available;
(11) activities identified in the employment plan are not available;
(12) the participant is willing to accept suitable employment, but suitable employment is not available; or
(13) the participant documents other verifiable impediments to compliance with the employment plan beyond the participant's control.
Illinois. No sanction will be imposed the participant is sent a written notice scheduling a good cause determination/reconciliation meeting to determine whether the participant had good cause for his or her failure to comply with requirements and the participant has either failed to attend the meeting or failed to show good cause. If the participant failed to show good cause, the reconciliation process will continue to enable resolving disputes related to participation. The written notice shall explain the purpose of the appointment and the consequences for failure to attend or failure to show good cause. A sanction against participants may be rescinded at any level of the sanction process up through and until the final agency decision, including any appeal hearing, if the participant establishes good cause. The notice issued for a sanction shall include a description of the acts of noncooperation, including dates where applicable and a statement that the participant's acts were without good cause.
Examples of good cause include but are not limited to:
1) temporary illness for its duration;
2) court required appearance or temporary incarceration;
3) death in the family;
4) extreme inclement weather;
5) lack of any supportive service, even though the necessary service is not specifically provided under TANF, to the extent the lack of the needed service presents a significant barrier to TANF participation;
6) if an individual is engaged in employment and/or training that is consistent with the employment related goals of the program, if such employment and training is later approved by TANF staff;
7) failure of department staff or contractor to correctly forward the information to TANF staff;
8) failure of the participant to cooperate because of attendance at a test or a mandatory class or function at an educational program, when an education/training program is officially approved by TANF;
9) failure of the participant due to his or her illiteracy;
10) failure of the participant because it is determined that he or she should be in a different TANF activity;
11) non-receipt by the participant of a notice advising him or her of a participation requirement. If the non-receipt of mail occurs frequently, the department shall explore an alternative means of providing notices of participation requests to participants;
12) non-comprehension of written and/or oral English;
13) child care (or day care for an incapacitated individual living in the same home as a child) is necessary for the participation or employment and such care is not available for a child under age 13;
14) failure to participate in a TANF activity due to a verified scheduled job interview, medical appointment for the participant or a household member, or a school appointment for the participant or his or her children;
15) the individual is homeless. Homeless individuals have no current residence and no expectation of acquiring one in the next 30 days. This includes individuals residing in overnight and temporary shelters. This does not include individuals who are sharing a residence with friends or relatives on a continuing basis;
16) documented circumstances beyond the control of the participant which prevent the participant from completing program requirements; or
17) failure to participate in a TANF work activity because of violations of workplace rights due TANF recipients as determined by the U.S. Department of Labor.
Iowa. The department must send a reminder, request, or other notification when there is a potential participation issue. The reminder or request shall identify the participation issue, clarify expectations, attempt to identify barriers to participation, explain the consequences of the limited benefit plan, and offer supervisory intervention. If the department proposes to cancel, reduce, or suspend assistance, it shall give at written notice at least ten calendar days before the date the action would become effective. The notice must include a statement of what action is being taken, the reasons for the intended action, the manual chapter number and subheading supporting the action and the corresponding rule reference, an explanation of the appellant's right to appeal, and notice that assistance shall not be suspended, reduced, restricted, or canceled, or other proposed adverse action be taken pending a final decision on a timely appeal
(1) Acceptable instances when a person is excused from participation.
a.   Illness. When a participant is ill more than three consecutive days or if illness is habitual, staff may require medical documentation of the illness.
b.   Required in the home due to illness of another family member. Staff may require medical documentation for the same reasons as when a participant is ill.
c.   Family emergency, using reasonable standards of an employer.
d.   Bad weather, using reasonable standards of an employer.
e.   Absent or late due to participant's or spouse's job interview.
f.   Leave due to the birth of a child.
(2) Acceptable instances when a person is excused from participation or for refusing or quitting a job or limiting or reducing hours or for discharge from employment due to misconduct.
a.   Required travel time from home to the job or available work experience or unpaid community service site exceeds one hour each way. This includes additional travel time necessary to take a child to a child care provider.
b.   Work offered is at a site subject to a strike or lockout, unless the strike has been enjoined or unless an injunction has been issued.
c.   Violates applicable state or federal health and safety standards or workers' compensation insurance is not provided.
d.   Job is contrary to the participant's religious or ethical beliefs.
e.   The participant is required to join, resign from or refrain from joining a legitimate labor organization.
f.   Work requirements are beyond the mental or physical capabilities as documented by medical evidence or other reliable sources.
g.   Discrimination by an employer based on age, race, sex, color, handicap, religion, national origin or political beliefs.
h.   Work demands or conditions render continued employment unreasonable, such as working without being paid on schedule.
i.   Circumstances beyond the control of the participant, such as disruption of regular mail delivery.
(3) Jobs that participants have the choice of refusing or quitting or limiting or reducing, or instances when participants are excused for discharge from the job due to misconduct.
a.   Employment change or termination is part of the family investment agreement.
b.   Job does not pay at least the minimum amount customary for the same work in the community.
c.   Employment is terminated in order to take a better-paying job, even though hours of employment may be less than current.
d.   The employment would result in the family of the participant experiencing a net loss of cash income. Net loss of cash income results if the family's gross income less necessary work-related expenses is less than the cash assistance the person was receiving at the time the offer of employment is made.
e.   The employment changes substantially from the terms of hire, such as a change in work hours, work shift, or decrease in pay rate.
(4) Instances when problems of participation could negatively impact the client's achievement of self-sufficiency. There may be instances where staff determine that a participant's problems of participation are not described, but may be circumstances which could negatively impact the participant's achievement of self-sufficiency.
Michigan. For the first instance that a worker determines a recipient to be noncompliant the department shall notify the recipient in writing within 3 business days of determining that the recipient is noncompliant. The notification shall include the reason the recipient has been determined to be noncompliant, the penalty that will be imposed for the noncompliance an opportunity for the recipient to meet in person with a caseworker within 10 business days of the determination. If the recipient meets with a caseworker within 10 business days, the caseworker and the recipient shall review and modify the family self-sufficiency plan as determined necessary. The caseworker shall discuss and provide an official warning regarding penalties that shall be imposed if the recipient continues to be noncompliant. The caseworker shall inform the recipient that he or she must verify compliance with his or her family self-sufficiency plan within 10 business days.
For any instance of noncompliance, the recipient shall receive not less than 12 days' notice before penalties are imposed. If the recipient demonstrates good cause for the noncompliance during this period, a penalty shall not be imposed. Good cause is one or more of the following:
  The applicant or recipient suffers from a temporary debilitating illness or injury or an immediate family member has a debilitating illness or injury and the applicant or recipient is needed in the home to care for the family member.
  The applicant or employee lacks child care.
  Either employment or training commuting time is more than 2 hours per day or is more than 3 hours per day when there are unique and compelling circumstances, such as a salary at least twice the applicable minimum wage or the job is the only available job placement within a 3 hour commute per day, not including the time necessary to transport a child to child care facilities.
  Transportation is not available to the participant at reasonable cost.
  The employment or participation involves illegal activities.
  The applicant or recipient is physically or mentally unfit to perform the job, as documented by medical evidence or by reliable information from other sources.
  The applicant or recipient is illegally discriminated against on the basis of age, race, disability, gender, color, national origin, or religious beliefs.
  Credible information or evidence establishes one or more unplanned or unexpected events or factors that reasonably could be expected to prevent, or significantly interfere with, the individual's compliance with employment and training requirements, such as domestic violence, health or safety risk, religion, or homelessness.
  The applicant or recipient quit employment to obtain comparable employment.
Analysis used to determine effect on small businesses
The notice of W-2 payment reductions or case closures does increase the workload of W-2 agency financial and employment planners (FEPs), but there is no significant increase in the cost of administering the W-2 program due to either the notice of payment reductions or good cause amendments.
Initial Regulatory Flexibility Analysis
The proposed rules affect private W-2 agencies but do not have substantial economic effect on these agencies. The DWD Small Business Regulatory Coordinator is Elaine Pridgen, elaine.pridgen@dwd.state.wi.us, (608) 267-9403.
Fiscal Estimate
Summary
The notice of W-2 payment reductions or case closures does increase the workload of W-2 agency financial and employment planners (FEPs), but there is no significant increase in the cost of administering the W-2 program due to either the notice of payment reductions or good cause amendments.
State fiscal effect
None
Local fiscal effect
None
Long-range fiscal implications
None
Notice of Hearing
Workforce Development
Family Supports, Chs. DWD 12-59
NOTICE IS HEREBY GIVEN that pursuant to ss. 49.155 and 227.11 (2) (a), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules revising s. DWD 56.04, relating to child care enrollment underutilization and affecting small businesses.
Hearing Information
May 19, 2008
MADISON
Monday
1:30 p.m.
G.E.F. 1 Building
Room D203
201 E. Washington Avenue
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 an alternative format will be made available on request to the fullest extent possible.
Interested persons are invited to appear at the hearing 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.
Copies of Proposed Rule and Submission of Written Comments
An electronic copy of the proposed rules is available at http://www.dwd.state.wi.us/dwd/hearings.htm.
A copy of the proposed rules is also available at http://adminrules.wisconsin.gov. 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 or fiscal estimate by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written comments on the proposed rules received at the above address, email, or through the http://adminrules. wisconsin.gov web site no later than May 20, 2008, will be given the same consideration as testimony presented at the hearing.
Agency Contact Person
Laura Saterfield, Child Care Section Chief, laura.saterfield@dwd.state.wi.us, (608) 266-3443.
Analysis Prepared by the Department of Workforce Development
Statutory authority
Sections 49.155 and 227.11 (2) (a), Stats.
Statutes interpreted
Section 49.155, Stats.
Related statutes or rules
Section 48.65, Stats, and Chapters HFS 45, 46, and 55; Section 48.651, Stats., and Chapter DWD 55
Explanation of agency authority
The Department administers the child care subsidy program under s. 49.155, Stats., and reimburses child care providers for services provided pursuant to s. 49.155 (3m), Stats.
Plain language analysis
The current s. DWD 56.04 (2) (d) provides that a child care administrative agency shall authorize payment to licensed group and family day care centers based on authorized units of service except as follows:
  The agency may authorize payment to licensed providers based on units of service used by each child up to the maximum number of authorized units, with the reimbursement rate increased by 10% to account for absent days, if the schedule of child care to be used is expected to vary widely.
  The agency may authorize payment to licensed providers based on units of service used by each child, up to the maximum number of authorized units, if the agency has documented 3 separate occasions where the provider significantly overreported the attendance of a child.
The current methodology for authorizing payment to licensed providers has caused the child care subsidy program to pay for significant amounts of time when care is not actually being provided. The emergency and proposed rules attempt to control costs by reducing payments to licensed child care providers for authorized child care services that are significantly underused. The emergency and proposed rules repeal the presumption of enrollment authorization for licensed providers and provides that a local child care administrative agency shall authorize on either an enrollment or attendance basis as follows:
  The agency shall authorize the number of hours needed on an enrollment basis if the need for care is anticipated to be approximately the same number of hours each week.
  The agency shall authorize payment based on the hours of actual attendance by each child if the need for care is anticipated to vary from week to week or if the child has a history of variable attendance.
  The agency may authorize payment on the hours of actual attendance if the agency has documented 3 separate occasions where the provider significantly overreported the attendance of a child.
For any week in which a child whose authorized payments are on an enrollment basis attends less than 50% of the authorized hours of care, payment shall be made on the basis of actual hours of attendance used, unless the agency determines that the absence is for a reason approved by the Department, such as short-term illness of the child or death in the family. This policy does not apply to a child with a special needs authorization.
Payment to certified providers is based on a child's attendance and remains unchanged in this rule.
The emergency and proposed rules also increase the penalties for a provider who submits false or inaccurate attendance reports. The current s. DWD 56.04 (5) (c) allows for the child care administrative agency to refuse to issue new child care authorizations to a provider for a period of time not to exceed 6 months, revoke existing child care authorizations to the provider, or refuse to issue payment to the provider until the violation is corrected. The rule will also provide additional penalties in the following situations:
  If it is the provider's second documented instance of submitting an inaccurate attendance report or the inaccurate report resulted in or would have resulted in an overpayment of $1,000 or more, the agency may refuse to issue new child care authorizations to a provider for a period of time not to exceed 1 year.
  If it is the provider's third or subsequent documented instance of submitting an inaccurate attendance report or the inaccurate report resulted in or would have resulted in an overpayment of $5,000 or more, the agency may refuse to issue new child care authorizations to a provider for a period of time not to exceed 5 years.
The emergency rule was effective March 30, 2008.
Summary of factual data and analytical methodologies
The Department has reestimated the potential current year deficit in the child care subsidy program to be slightly less than the estimate from February (which was included with the emergency rule filed on March 18th). In the intervening 2 1/2 months, based on additional weeks of actual subsidy expenditures we have seen a slight decrease in costs and are now projecting a State Fiscal Year deficit of $16.2 million. This reduction, while meaningful as a $2.4 million decrease to the deficit, represents a change of less than 1.0% (0.7%) of the total projected subsidy expenditures for the fiscal year.
Due to this projected budget shortfall, the Department is reinstating the child care enrollment underutilization policy that was in effect April to October 2007. The underutilization policy was implemented in response to a significant 06-07 budget shortfall and was withdrawn in October 2007 upon passage of 2007 Wisconsin Act 20, although Act 20 does not affect the Department's authority for the policy. The Legislative Fiscal Bureau: Summary of Budget Provisions states “DWD will be permitted to continue the attendance-based policy and to modify recipients' co-payments, as under prior law." (page 589, http://www.legis.state.wi.us/lfb/2007-09budget/Act%2020/dwd.pdf)
By paying the hourly rate for actual attendance to child care providers when attendance is under 50% of the authorized level for the child care subsidy program, the Department will avoid paying for significant amounts of time where care is not actually being provided. The Department has revised the estimate of annual savings from implementing the child care enrollment underutilization policy. This revised savings estimate reflects further analysis of the interaction of other child care payment policies on the proposed underutilization policy. Based on adjustments for these interactions, when comparing the amount currently paid for enrollment authorizations against the amount that would be paid if underutilized authorizations of 50% or less are paid for actual hours of care, the Department is revising the estimate of annual savings from $18.5 million to $13.0 million.
Comparison with federal regulations
There are no applicable federal regulations.
Comparison with rules in adjacent states
Michigan. A provider may only receive payment for a child's hours of attendance, except for absences due to the child's illness, not to exceed 2 consecutive weeks, and state holidays.
Illinois. Payment to licensed and license-exempt child care centers are based on authorized days if the total of days attended for all publicly-funded children at a center location are 80% of the authorized days for the month.
Payment to licensed home providers are based on authorized days if the total of days attended for all children in a family are 80% of the family's authorized days for the month.
Payment to license-exempt home providers are based only on attendance.
Iowa. Payment is based on authorized days with payment allowed for a child not in attendance not to exceed 4 days per calendar month.
Minnesota. Payment is based on authorized days except child care providers may not be reimbursed for more than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more than 10 consecutive full-day absent days, unless the child has a documented medical condition that causes more frequent absences.
Analysis used to determine effect on small businesses
The Legislature and Governor set the funding level for the Wisconsin Shares child care subsidy program. These rules do not affect the amount of funding for the program. All of the allocated funding will be spent as subsidies for child care for the children of working families. We do not anticipate that the proposed rules will in any way change the extent to which these dollars are spent on small businesses.
Initial Regulatory Flexibility Analysis
The rule will affect small businesses but will not have a significant economic impact on a substantial number of small businesses as defined in s. 227.114 (1), Stats.
Fiscal Estimate
Summary
The Department has revised the estimate of annual savings from implementing the child care enrollment underutilization policy since filing the fiscal estimate for the emergency rule on March 18. This revised savings estimate reflects further analysis of the interaction of other child care payment policies on the proposed underutilization policy. Based on adjustments for these interactions, when comparing the amount currently paid for enrollment authorizations against the amount that would be paid if underutilized authorizations of 50% or less are paid for actual hours of care, the Department is revising the estimate of annual savings from $18.5 million to $13.0 million.
State fiscal effect
Decrease in costs.
Local fiscal effect
None
Fund sources affected
GPR, FED, PRS, SEG
Affected ch. 20 appropriations
Section 20.445 (3), Stats.
Long-range fiscal implications
None
Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.