Rule-Making Notices
Notice of Hearings
Corrections
NOTICE IS HEREBY GIVEN that pursuant to sections 227.11 (2) and 301.45 (10), Stats., and interpreting ss. 301.45 (10), Stats., as amended by 2007 Wisconsin Act 20, section 3132, the Department of Corrections will hold public hearings to consider:
  Emergency rule DOC 332.19, relating to the establishment of a sex offender registration fee to partially offset the costs of monitoring persons who are required to register as sex offenders; and
  Proposed permanent rule DOC 332.19, relating to the sex offender registration fee to bring the rule into compliance with s. 301.45 (10) as amended by 2007 Wisconsin Act 20, section 3132.
Hearing Information
Date and Time   Location
July 24, 2008   Conference Room 116
10:00 a.m.   State Office Building
  819 North 6th Street
  Milwaukee, Wisconsin
July 24, 2008   St. Croix Conference Room - First Floor
2:30 p.m.   Department of Administration
  101 East Wilson Street
  Madison, Wisconsin
The public hearing sites are accessible to people with disabilities. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please contact Kathryn Anderson, DOC, P.O. Box 7925, Madison, WI 53707-7925, email kathryn.anderson@ wisconsin.gov, telephone (608) 240-5049 by July 17, 2008.
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. Written comments on the proposed rule will be accepted into the record and receive the same consideration as testimony presented at the hearing if they are received by July 31, 2008. Written comments should be addressed to: Kathryn R. Anderson, DOC, P.O. Box 7925, Madison, WI 53707-7925, or by email kathryn.anderson@wisconsin.gov.
Agency Contact Person
Kathryn R. Anderson, Chief Legal Counsel, Wisconsin Department of Corrections, 3099 East Washington Avenue, P.O. Box 7925, Madison, WI 53707-7925, (608) 240-5049, kathryn.anderson@wisconsin.gov
Emergency Rule EmR0812
ORDER OF THE
DEPARTMENT OF CORRECTIONS
AMENDING RULES
Finding of Emergency
The department of corrections finds that an emergency exists and that rules included in this order are necessary for the immediate preservation of public peace, health, safety and welfare. A statement of the facts constituting the emergency is: 2007 WI Act 20, section 3132, amended s. 301.45 (10), Stats., in three ways which requires an immediate amendment of s. DOC 332.19.
First, the newly amended s. 301.45 (10), Stats., expands the persons whom the department of corrections may require to pay an annual sex offender registration fee. Previously, the department was limited to assessing the fee only against those persons who were required to register and who were in its custody or under its supervision as a person on probation, parole, or extended supervision. The new law permits the department to require all persons who are required to register as a sex offender to pay an annual fee.
Second, the new law limits the use of the collected sex offender fees to partially offset the costs of monitoring sex offenders. Previously, the department was authorized to use the collected fees to partially offset the costs of monitoring those persons on probation, parole, or extended supervision, regardless of whether they were required to register as sex offenders.
Third, the legislature increased the maximum annual rate from $50 to $100. If the rule is not amended promptly and immediately, the department will not be able to collect the fees which are to be used to offset the costs of monitoring persons who are required to register as sex offenders. This could result in a lessening of supervision due to budget limitations.
Objective of the Rule
The purpose of the emergency rule is to amend the current rule to require all persons who are required to register as sex offenders under s. 301.45 to pay the annual fee which is used to partially offset the costs of monitoring registrants. The emergency rule also increases the annual rate to $100. The permanent rule process has been started. However, the permanent rule process will take approximately nine months to complete. Emergency rules are necessary to respond promptly to the collection of fees while permanent rules are being developed.
ORDER
Under the authority vested in the Department of Corrections by ss. 227.11 (2) and 301.45 (10), Stats., the Department of Corrections hereby amends the rule relating to the establishment of a sex offender registration fee to partially offset the costs of monitoring persons who are required to register as sex offenders, as follows:
Statutory authority
Sections 227.11 (2) and 301.45 (10), Stats.
Statutes interpreted
Section 301.45 (10), Stats.
Plain language analysis
The purpose of the rule is to amend s. DOC 332.19 to be consistent with s. 301.45 (10), Stats., as amended by 2007 Wisconsin Act 20, section 3132. Specifically, the emergency rule expands the requirement to pay the sex offender registration fee to all persons who are required to register, not just those who are required to register and are under the custody or supervision of the Department of Corrections. In addition, the emergency rule applies the collected sex offender registration fees to partially offset the costs of monitoring those persons required to register as sex offenders under 301.45, Stats., instead of partially offsetting the cost of supervising persons on probation, parole, or extended supervision. Finally, the emergency rule increases the annual fee from $50 to $100.
Text of Emergency Rule
SECTION 1. Section DOC 332.19 (1) is amended to read:
DOC 332.19 (1) Applicability. A person who is required to register as a sex offender under s. 301.45, Stats., and who is in the department's custody or who is on probation, parole, or extended supervision shall be charged a registration fee to partially offset the costs of monitoring offenders registrants.
SECTION 2. Section DOC 332.19 (2) (c) is created to read:
(c) “Registrant" means a person required to register as a sex offender under s. 301.45, Stats.
SECTION 3. Section DOC 332.19 (3), DOC 332.19 (4) (a), (b), and (c), DOC 332.19 (5) (a) 3. and (b), and DOC 332.19 (6) (intro) are amended to read:
(3) Fee. The sex offender registration fee shall be $50.00 $100.00 on an annual basis.
(4) Recording of registration fee. (a) Record all registration fees paid by an inmate or offender a registrant.
(b) Provide the inmate or offender registrant access to a copy of the record of payments to verify receipt of payments.
(c) Advise the inmate or offender registrant of nonpayment of registration fees.
(5) Collection of registration fee. (a) 3. Provide the inmate or offender registrant with a copy of the sex offender registration fee payment procedures.
(b) The inmate or offender registrant shall pay the sex offender registration fee to the department according to the procedures established by the department.
(6) (intro) Department action when an inmate or offender a registrant fails to pay registration fee. The department may use any of the following actions in any order when an inmate or offender a registrant fails to pay the sex offender registration fee:
Initial Regulatory Flexibility Analysis
The Department of Corrections has determined that the rule will not have a significant economic impact on a substantial number of small businesses since the rule does not regulate small businesses as that term is defined in s. 227.114, Stats.
Fiscal Estimate
Summary
The emergency rule and related permanent rule proposal amend the administrative rule relating to the establishment of an annual sex offender registration fee from the current $50/per offender to $100/per offender, allows the Department to extend that fee to sex offenders who are no longer in the Department's custody or supervised by the Department, and allows the Department to use the revenue to pay expenses related to sex offenders who are no longer under the Department's supervision. Revenues will increase $607,500 for 1 year billings, $852,700 for 2nd year billings and $908,100 for 3rd year billings. Expenses will increase $60,600 for staff and mailing costs in FY9, $52500 in FY10 and $53,000 in FY11.
A complete copy of the fiscal estimate is available upon request.
WISCONSIN DEPARTMENT OF CORRECTIONS
PROPOSED RULE MAKING ORDER
The Wisconsin Department of Corrections proposes an order to amend DOC 332.19, relating to the sex offender registration fee to bring the rule into compliance with s. 301.45 (10), Stats., as amended by 2007 WI Act 20, section 3132.
Statutory authority
Sections 227.11 (2) and 301.45 (10), Stats.
Statutes interpreted
Section 301.45 (10), Stats.
Plain language analysis
The purpose of the rule is to amend s. DOC 332.19 to be consistent with s. 301.45 (10), Stats., as amended by 2007 Wisconsin Act 20, section 3132. First, the newly amended s. 301.45 (10) expands the persons whom the department of corrections may require to pay an annual sex offender registration fee. Previously, the department was limited to assessing the fee only against those persons who were required to register and who were in its custody or under its supervision as a person on probation, parole, or extended supervision. The new law permits the department to require all persons who are required to register as a sex offender to pay an annual fee. The proposed rule expands the requirement to pay the sex offender registration fee to all persons who are required to register.
Second, the amended s. 301.45 (10), Stats., limits the use of the collected sex offender fees to partially offset the costs of monitoring sex offenders. Previously, the department was authorized to use the collected fees to partially offset the costs of monitoring those persons on probation, parole, or extended supervision, regardless of whether they were required to register as sex offenders. The proposed rule applies the collected sex offender registration fees to partially offset the costs of monitoring registrants.
Third, the legislature increased the maximum annual rate from $50 to $100. The proposed rule increases the annual fee to $100.
Text of Permanent Rule
SECTION 1. Section DOC 332.19 (1) is amended to read:
(1) Applicability. A person who is required to register as a sex offender under s. 301.45, Stats., and who is in the department's custody or who is on probation, parole, or extended supervision shall be charged a registration fee to partially offset the costs of monitoring offenders registrants.
SECTION 2. Section DOC 332.19 (2) (c) is created to read:
(c) “Registrant" means a person required to register as a sex offender under s. 301.45, Stats.
SECTION 3. Sections DOC 332.19 (3), DOC 332.19 (4) (a), (b), and (c), DOC 332.19 (5) (a) 3. and (b), and DOC 332.19 (6) (intro) are amended to read:
(3) Fee. The sex offender registration fee shall be $50.00 $100.00 on an annual basis.
(4) Recording of registration fee. (a) Record all registration fees paid by an inmate or offender a registrant.
(b) Provide the inmate or offender registrant access to a copy of the record of payments to verify receipt of payments.
(c) Advise the inmate or offender registrant of nonpayment of registration fees.
(5) Collection of registration fee. (a) 3. Provide the inmate or offender registrant with a copy of the sex offender registration fee payment procedures.
(b) The inmate or offender registrant shall pay the sex offender registration fee to the department according to the procedures established by the department.
(6) (intro) Department action when an inmate or offender a registrant fails to pay registration fee. The department may use any of the following actions in any order when an inmate or offender a registrant fails to pay the sex offender registration fee:
Initial Regulatory Flexibility Analysis
The Department of Corrections has determined that the rule will not have a significant economic impact on a substantial number of small businesses since the rule does not regulate small businesses as that term is defined in s. 227.114, Stats.
Fiscal Estimate
Summary
The emergency rule and related permanent rule proposal amend the administrative rule relating to the establishment of an annual sex offender registration fee from the current $50/per offender to $100/per offender, allows the Department to extend that fee to sex offenders who are no longer in the Department's custody or supervised by the Department, and allows the Department to use the revenue to pay expenses related to sex offenders who are no longer under the Department's supervision. Revenues will increase $607,500 for 1 year billings, $852,700 for 2nd year billings and $908,100 for 3rd year billings. Expenses will increase $60,600 for staff and mailing costs in FY9, $52500 in FY10 and $53,000 in FY11.
A complete copy of the fiscal estimate is available upon request.
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., OCI will hold a public hearing to consider the adoption of a proposed rulemaking order affecting Sections Ins 6.79 and 8.10, Wis. Adm. Code, relating to advisory councils and committees.
Hearing Information
Date:   July 21, 2008
Time:   10:00 a.m., or as soon thereafter as the matter
  may be reached
Place:   OCI, Room 227, 2nd Floor
  125 South Webster Street, Madison, WI
Submission of Written Comments
Written comments can be mailed to:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 679
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 679
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
Julie E. Walsh
Comments submitted through the Wis. Administrative Rule web site at: http://adminrules.wisconsin.gov on the proposed rule will be considered.
The deadline for submitting comments is 4:00 p.m. on the 10th day after the date for the hearing stated in this Notice of Hearing.
Copies of Proposed Rule and Agency Contact Persons
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:
Phone:   (608) 264-8110
Address:   125 South Webster St – 2nd Floor,
  Madison WI 53703-3474
Mail:   PO Box 7873, Madison, WI 53707-7873
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 15.04, 15.09 and 601.20, Stats.
Statutory authority
Section 601.20, Stats.
Explanation of agency authority
The OCI is specifically granted authority to create advisory councils and committees and permits the OCI to establish by rule the creation, governance, duties and termination of any council or committee that the commissioner establishes.
Related statutes or rules
The topics addressed by the OCI's committees and councils are not duplicative of other state efforts.
Plain language analysis
The proposed rule implements s. 601.20, Stats., and establishes the structure, governance, duties and termination of councils or committees that the commissioner determines will be of assistance to the Office in carrying out its duty of regulation. The proposed rule repeals s. Ins 8.10, Wis. Adm. Code, as that council no longer functions. Section Ins 6.79, Wis. Adm. Code, is repealed and recreated to more specifically define the structure of advisory councils and committees including duties, meetings, membership, officers and term of the council or committee. Although the listing of specific councils is repealed, the commissioner has continued to utilize councils and committees that focus on topics of life, health and property and casualty insurance issues. The proposed rule provides the structure to continue existing councils and committees and to establish new committees or councils with a focus and composition reflecting the subjects that are being considered by the agency when needed.
Comparison with federal regulations
There is no federal regulation that addresses the content of this rule.
Comparison of rules in adjacent states
Illinois: No similar rule, although the Illinois Department of Financial and Professional Regulation is required to use advisory boards or councils for very specific topics. For example, the Illinois Department is authorized to convene an advisory committee for providing counsel and gathering clinical advice relating to mandated dental care issues. (See., 50 IL Admin Code 5425.40.) However, Illinois does not have a regulation similar to what is being proposed.
Iowa: No similar rules or laws.
Michigan: No similar rules or laws
Minnesota: No similar rules or laws.
Summary of factual data and analytical methodologies
No data analyzed as this addresses the role of advisory councils and committees and not specific regulatory oversight or actions of the Office.
Analysis and supporting documentation used to determine effect on small businesses
The proposed rule is simply to describe the structure of advisory councils or committees, not specific regulatory action so there is no effect on small businesses.
Initial Regulatory Flexibility Analysis
This rule will have no effect on small businesses and does not impose any additional requirements on small businesses.
Fiscal Estimate
State fiscal effect
None
Local fiscal effect
None
Private sector fiscal effect
The rule change will have no effect on the private sector regulated by OCI.
Long-range fiscal implications
None
Notice of Hearing
Natural Resources
Fish, Game, etc., Chs. NR 1
NOTICE IS HEREBY GIVEN that the Department of Natural Resources will hold public hearings on revisions to Chapter NR 25, Wis. Adm. Code, relating to wholesale fish dealing and commercial fishing in outlying waters and affecting small business.
Hearing Information
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on:
July 16, 2008
Wednesday
at 5:00 p.m.
Garland Room
Vaughn Public Library
502 West Main Street
Ashland
July 17, 2008 Thursday
at 4:00 p.m.
Room B19, DNR Service Center 3550 Mormon Coulee Road
La Crosse
July 30, 2008 Wednesday
at 10:30 a.m.
Room 104 - DNR Southeast Region Hdqrs., 2300 N. Dr. Martin Luther King, Jr. Drive
Milwaukee
July 30, 2008 Wednesday
at 3:00 p.m.
Wells Fargo Room
Lakeshore Technical College
1290 North Avenue
Cleveland
July 31, 2008 Thursday
at 10:00 a.m.
Council Chambers
Peshtigo City Hall
331 French St. (Hwy 41)
Peshtigo
July 31, 2008 Thursday
at 1:30 p.m.
Lake Michigan Room
DNR Northeast Region Hdqrs., 2984 Shawano Avenue
Green Bay
July 31, 2008 Thursday
at 5:30 p.m.
Sturgeon Bay Library
107 South 4th Avenue
Sturgeon Bay
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 Tom Hansen at (920) 662-5438 with specific information on your request at least 10 days before the date of the scheduled hearing.
Submission of Written Comments, Agency Contact and Copies of Proposed Rule
The proposed 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. Tom Hansen, Administrative Warden, DNR Northeast Region, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until August 10, 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. Hansen.
Analysis Prepared by the Department of Natural Resources
Statutory authority
Statutes interpreted
Sections 29.014 (1), 29.041, 29.503, 29.516, 29.519 and 29.973, Stats.
Plain language summary
The proposed rules complete the implementation of the statutory requirements of 2003 Wisconsin Act 288 and recommendations of the Great Lakes Fishing Task Force. The proposed changes include:
1. Electronic fish harvest reporting system. The rule creates the electronic fish harvest reporting system (EFHRS) and related procedures to replace the current biweekly “paper" reporting system for recording and reporting all elements of the Great Lakes commercial catch.
2. Fleet reporting system. The rule will allow an individual to hold multiple commercial fishing licenses in his or her own name, and creates a fleet reporting program whereby a person holding multiple commercial fishing licenses on Lake Superior or Lake Michigan can consolidate the quotas under these licenses and permits for reporting purposes. It establishes the individual species harvest limits for a commercial fisher with multiple licenses engaged in fleet reporting as being the sum total of that person's quotas held under the individual licenses. The rule requires the licensee to mark all commercial fishing nets with a common “fleet reporting number" in place of the individual license numbers, and authorizes the licensee's crew members to operate all the commercial fishing gear and vessels included under the fleet reporting number without obtaining additional crew cards for each license included in the licensee's fleet. The rule clarifies the number of nets allowed and specifies that all nets in the water bearing a license number or fleet reporting number shall count toward the maximum number of nets allowed whether or not the net is actively fishing.
3. Records and reporting. Commercial fishers will no longer be required to complete and submit biweekly catch and disposition (sales) records to the Department. The rule implements an annual inventory report for both commercial fishers and wholesale fish dealers. It creates a float plan requirement for fishing “high value" species (whitefish for commercial fishers holding quotas less than 13,656 pounds and yellow perch). This rule creates float plan and enhanced reporting requirements for individuals previously convicted of specific commercial fishing violations. The rule makes it illegal to possess, control, transport or cause to be transported any fish for which a record has not been created or submitted as required.
4. Elimination of tagging of foreign (imported) lake trout. This rule repeals the provisions associated with the foreign lake trout tagging program while continuing to require commercial fishers to tag domestic lake trout.
5. Roe harvest. The rule requires commercial fishers to land and report all fish from which eggs are harvested, and limits the quantity of roe landed to a weight percentage of the fish landed.
6. License transfers. The rule eliminates certain license transfer criteria for transfer to immediate family members and persons holding non-temporary crew cards.
7. Commercial fishing nets on Lake Superior; other net and boat use restrictions. The rule creates a permit authorization by which the Department can allow the legal placement open water nets during the winter months on Lake Superior. The rule also creates a requirement for all Great Lakes commercial fishers to notify a Conservation Warden of any lost or recovered commercial fishing net. The rule prohibits anyone from lifting, tampering or disturbing commercial fishing gear without the permission of the owner. Also, state commercial fishing licensees and their crew members are prohibited from operating a boat used by the licensee in commercial fishing under ch. NR 25 if there are any lake trout tags on board that were not issued by the department to a state licensed commercial fisher. Finally, the rule prohibits a state licensed commercial fisher from allowing his or her licensed boats to be used to tend nets that were not set by a state licensed commercial fisher, and from allowing his or her licensed nets to be used by a person who is not a state licensed commercial fisher or crew member.
8. Ports of landing. The rule designates primary and secondary ports of landing for commercial fishers on Lake Superior, Lake Michigan and Green Bay. Commercial fishers are required to call in a daily float plan to the Department if they intend to land their catch at a secondary port.
9. Vehicle identification. The rule creates vehicle identification requirements for transportation of fish in vehicles belonging to commercial fishers and wholesale fish dealers.
10. Housekeeping provisions. The rule includes several housekeeping provisions updating language and terms, clarifying provisions on the use of gear, and identifying the specific locations of particular lines and boundaries.
Initial Regulatory Flexibility Analysis
Pursuant to s. 227.114, Stats., the proposed rule may have an impact on small businesses. The initial regulatory flexibility analysis is as follows:
Types of small businesses affected
Commercial fishers and wholesale fish dealers
Description of reporting and bookkeeping procedures required
The current biweekly “paper" reporting system for daily fishing activity is replaced with an electronic fish harvest reporting system whereby commercial fishers submit electronic reports and data relating to fishing activity and reports on a daily basis via the Internet. The Department will provide the portable electronic reporting unit to the commercial fishers. A fleet reporting system is created to allow family commercial fishing businesses to consolidate quota allocations, fish harvest weights and daily fishing activity information for reporting purposes, thereby eliminating extensive record keeping requirements relating to individual licenses. The completion and submittal of a biweekly catch and disposition report to the Department is eliminated for commercial fishers. Commercial fishers and wholesale fish dealers will be required to submit a new annual inventory report documenting fish in possession, storage or under control on an annual date of their choosing to allow them to use the same inventory data as required for tax reporting or other business purposes. The required inspection and tagging of foreign lake trout imported by wholesale fish dealers is eliminated.
Description of professional skills required
No new professional skills are required.
Environmental Analysis
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
Summary
This rule streamlines Great Lakes commercial fish reporting processes by implementing a fleet reporting system and a Department-managed electronic fish harvest reporting system (EFHRS). Both of these new systems for managing required data and reports will increase the efficiencies of Department staff (Fisheries and LE) by eliminating the need to enter commercial fishing data and the related handling and filing of the current biweekly commercial fishing daily activity reports. Fisheries and LE staff will be able to directly access daily fishing activity data electronically through EFHRS, thereby allowing timely and efficient analysis of data for ensuring compliance and protection to the Great Lakes fishery resource. It is very difficult to quantify the labor cost savings/significance of these two new systems, as the increased efficiencies will allow affected Department staff to redirect their activities to other required tasks and pressing issues.
Complete implementation of EFHRS in 2010 will eliminate the need for the Department to print and distribute the paper biweekly daily fishing activity report to individual commercial fishers, which will reduce Department printing and mailing costs by approximately $500 per year. It is estimated that EFHRS will cost approximately $15,000 to establish and $2,700 annually to maintain.
Fleet reporting benefits both the Department and the commercial fishing industry by allowing family commercial fishing businesses to consolidate individual fish harvest quotas into a single reporting entity. This significantly reduces paper work for the commercial fishers and the number of reports and associated data for DNR Fisheries staff to manage.
State fiscal effect
Indeterminate
Local fiscal effect
None
Fund sources affected
SEG
Affected chapter 20 appropriations
Notice of Hearing
Natural Resources
Fish, Game, etc., Chs. NR 1
NOTICE IS HEREBY GIVEN that the Department of Natural Resources will hold public hearings on revisions to Chapter NR 10, Wis. Adm. Code, relating to the 2008 migratory game bird seasons and waterfowl hunting zones.
Hearing Information
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on:
August 4, 2008   Rooms B-19 and B-20
Monday   State Office Building
at 7:00 p.m.   3550 Mormon Coulee Road
  La Crosse
August 5, 2008   Room 241, WI Indianhead Tech College
Tuesday   1900 College Drive
at 7:00 p.m.   Rice Lake
August 6, 2008   Main Conference Room
Wednesday   Agricultural Services Center
at 7:00 p.m.   3369 W. Brewster Street
  Appleton
August 7, 2008   Trecker Lodge
Thursday   Kettle Moraine State Forest-
at 7:00 p.m.   Lapham Peak Unit
  W329, N845 County C
  Delafield
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 Kent Van Horn at (608) 266-8841 with specific information on your request at least 10 days before the date of the scheduled hearing.
Submission of Written Comments, Agency Contact and Copies of Proposed Rule
The proposed 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. Kent Van Horn, Bureau of Wildlife Management, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until August 7, 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. Van Horn.
Analysis Prepared by the Department of Natural Resources
Statutory authority
Sections 29.014, 29.041, 29.197 and 227.11 (2) (a), Stats.
Statutes interpreted
Sections 29.014, 29.041 and 29.885, Stats.
Plain language summary
Season dates and bag limits will be set for ducks and Canada geese. Under international treaty and federal law, migratory game bird seasons are closed unless opened annually via the U.S. Fish and Wildlife Service regulatory process. Because of the timing of Wisconsin's rule process and the U.S. Fish and Wildlife Service rule process, the actual season lengths, dates and bag limits cannot be determined at this time for much of the rule. The daily bag limit for ducks is expected to be 6 ducks including not more than 4 mallards, of which only one may be a hen, one black duck, one pintail, 2 canvasbacks, 2 wood ducks, 2 redheads and 2 scaup. Season lengths for Canada geese are expected to be: Collins Zone – 67 days; Horicon Zone – 92 days; Exterior Zone – 85 days; and Mississippi River Subzone – 85 days.
The proposed rule also reduces the number of time periods for Canada goose hunting in the Horicon Zone from 4 times periods to 2 time periods. The rule also proposes an addition of 10 days to the mourning dove hunting season which is consistent with the anticipated federal season framework that will be offered this year. The additional 10 days would be added on to the end of our existing 60-day season which runs from September 1 to October 30.
Initial Regulatory Flexibility Analysis
Pursuant to s. 227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at SmallBusiness@dnr. state.wi.us or by calling (608) 266-1959.
Environmental Analysis
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
Summary
The proposed changes will not result in any significant changes in spending or revenue. There are no government costs anticipated due to the provision of this rule.
State fiscal effect
None
Local fiscal effect
None
Long-range fiscal implications
None
Notice of Hearing
Natural Resources
Fish, Game, etc., Chs. NR 1
NOTICE IS HEREBY GIVEN that the Department of Natural Resources will hold a public hearing on amendments to sections NR 47.007 (1) and 47.008 (1) and the creation of subch. XII of chapter NR 47, Wis. Adm. Code, relating to the administration of the urban forestry catastrophic storm grant program.
Hearing Information
NOTICE IS HEREBY FURTHER GIVEN that the hearing will be held on:
July 15, 2008     Room G09
Tuesday     DNR State Office Building
at 10:30 a.m.     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 Candice Sovinski at (608) 267-3775 with specific information on your request at least 10 days before the date of the scheduled hearing.
Submission of Written Comments, Agency Contact and Copies of Proposed Rule
The proposed rule and fiscal estimate may be reviewed and comments electronically submitted at the following Internet sites: http://adminrules.wisconsin.gov or http://dnr.wi.gov/ org/legal/adminrules.html. Written comments on the proposed rule may be submitted via U.S. mail to Ms. Candice Sovinski, Bureau of Forest Management, P.O. Box 7921, Madison, WI 53707 or submitted by fax to (608) 266-8576. Comments may be submitted until July 22, 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 hearing. A personal copy of the proposed rule and fiscal estimate may be obtained from Ms. Sovinski.
Analysis Prepared by the Department of Natural Resources
Statutory authority
Sections 23.097 (1r) and 227.11 (2) (a), Stats.
Statutes interpreted
Section 23.097 (1r), Stats.
Plain language summary
2007 Wisconsin Act 13 gives the department the authority to provide urban forestry grants to meet communities' needs for repair, removal and replacement of trees following a catastrophic storm event for which the Governor has designated a state of emergency. Act 13 allows for a portion of the current urban forestry grant appropriation be used to fund no-match catastrophic storm grants in an expedited manner for Governor-declared disasters in urban or developed areas of the state.
To accomplish this, the proposed rule will update the general provisions section on grant termination and enforcement and create a new subchapter for the urban forestry catastrophic storm grants which will establish eligibility, application procedures, eligible costs for payment, the grant selection process and the required supporting documentation for the urban forestry catastrophic grant program.
Initial Regulatory Flexibility Analysis
Pursuant to s. 227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at SmallBusiness@dnr.state. wi.us or by calling (608) 266-1959.
Environmental Analysis
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
Summary
The Department of Natural Resources (DNR) administers a grant program under which counties, cities, villages, towns, tribal governments and nonprofit organizations receive grants of up to 50 percent of the cost for projects relating to tree management such as development of management plans, ordinances, and tree inventories. 2007 Act 13 authorized the DNR to award grants to any of the aforementioned entities for the costs of removing, repairing, or replacing trees damaged in a catastrophic storm event in an urban area for which the governor has declared a state of emergency. 2007 Act 13 allows the department to provide grants covering 100% of the costs for this purpose.
Assumptions
Since 1990, there has been, on average, one storm annually where the Governor has designated a state of emergency for an area. The Department estimated that grants totalling as much as $106,000, or up to 20% of the total current appropriation for urban forestry grants, and up to $50,000 each, would be made available annually to local governments, tribes and nonprofit organizations in communities suffering a storm event that leads to a declaration of emergency by the Governor. Funding for the proposed grants will come from the existing funding appropriated for the urban forestry grant program, which is currently approximately $529,900 annually.
State fiscal effect
Increase in costs that may be possible to absorb within agency's budget.
Local fiscal effect
No local government costs. Increase revenues - permissive.
Types of local governmental units affected
Towns, villages, cities, counties, tribes, NCOs
Fund sources affected
SEG
Affected chapter 20 appropriations
Section 20.370 (1) (mv) and (5) (bw), Stats.
Long-range fiscal implications
It is difficult to predict the future demand for urban forestry catastrophic storm grants. However, should the demand for these grants be high, the repetitive diversion of funds would decrease the number of urban forestry grants to communities by 20%, or an estimated 8 to 10 grants each year.
Notice of Hearing
Natural Resources
Environmental Protection - General, Chs. NR 100
NOTICE IS HEREBY GIVEN that the Department of Natural Resources will hold public hearings on revisions to Chapters NR 190, 191, 195 and 198, Wis. Adm. Code, relating to aquatic invasive species prevention and control grants.
Hearing Information
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on:
July 22, 2008   Conference Room
Tuesday   DNR West Central Region Hdqrs.
at 7:00 p.m.   1300 W. Clairemont
  Eau Claire
July 23, 2008   Conference Room
Wednesday   DNR Northern Region Hdqrs.
at 7:00 p.m.   810 W. Maple Street
  Spooner
July 29, 2008   Conference Room
Tuesday   DNR Northern Region Hdqrs.
at 7:00 p.m.   107 Sutliff Avenue
  Rhinelander
July 30, 2008   Conference Room
Wednesday   DNR Service Center
at 7:00 p.m.   625 E. County Road Y, Suite 700
  Oshkosh
August 5, 2008   Conference Room
Tuesday   Watertown Public Library
at 6:00 p.m.   100 S. Water Street
  Watertown
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 Carroll Schaal at (608) 261-6423 with specific information on your request at least 10 days before the date of the scheduled hearing.
Submission of Written Comments, Agency Contact and Copies of Proposed Rule
The proposed 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. Carroll Schaal, Bureau of Watershed Management, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until August 29, 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. Schaal.
Analysis Prepared by the Department of Natural Resources
Statutory authority
Statutes interpreted
Sections 23.22 (2) (c), 23.24, 281.68, 281.69 and 281.70, Stats.
Plain language summary
In 2004, the Department promulgated ch. NR 198 for a cost share program for assisting public and private entities in controlling aquatic invasive species. 2007 Wisconsin Act 20 increased the cost share rates, removed priority for local government sponsors and increased the allocation of $2.8 million annually. The proposed revisions to ch. NR 198 incorporate the new statutes and make additional changes that include larger maximum grant awards, an expanded list of potential sponsors, create incentives and priorities for projects that integrate aquatic invasive species control with other environmental protections and allows communities that are successfully and compliantly managing existing populations of aquatic invasive species to recoup their aquatic plant management permit fees.
Additional changes that increase the value of donated labor, used for local match, from $8 to $12 and require application materials to be submitted in electronic format in ch. NR 198 are also proposed for the closely related lake and river grant programs in chs. NR 190, 191 and 195 for needed uniformity.
Initial Regulatory Flexibility Analysis
Pursuant to s. 227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at SmallBusiness@dnr. state.wi.us or by calling (608) 266-1959.
Environmental Analysis
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
Summary
The proposed rule makes changes to the aquatic invasive species (AIS) grants program as a result of changes that were included in 2007 Act 20, the 2007-09 biennial budget act. The changes in the package include the following:
1. Increasing the cap on the state cost-share rate from 50% to 75%.
2. Deleting a requirement that grants be awarded to local units of government.
3. Increasing the maximum amount of dollars (i.e. grant cap) that can be awarded for a grant.
4. Increasing the value for volunteer labor that can be used as local match and require electronic applications. (These changes are proposed for NR 190 Lake Management Planning, NR 191 Lake Protection and Classification Grants, and NR 195 River Protection Grants, too).
5. Establishing a new category of AIS grants that reimburses grantees for maintenance costs that are incurred while managing established infestations of aquatic invasive species, and a new category describing how research and demonstration projects can be developed and proposed.
6. Allowing a cash advance for early detection and rapid response projects.
7. Expanding sponsorship to include universities, colleges and technical schools, hydro-electric corporations and other branches of state and federal government that manage lands or natural resources.
8. Broadening the definition of a nonprofit conservation organization (NCO).
9. Adding priorities and incentives for projects that integrate with pollution control, habitat protection and that use a bidding process to develop their budget.
State fiscal effect
Increase in costs that may be possible to absorb within agency's budget.
Although a rule change is required, item 1 above has already been implemented by the Department because the change has already been made in statute by Act 20. Items 2 through 9 above are expected to generate additional demand for AIS grants by an amount that cannot be specifically estimated. In addition, since Act 20 did not provide additional staff or funding for administering the AIS grant program, the costs associated with handling the additional demand for AIS grants will be absorbed with existing staff and within the existing budget.
Local fiscal effect
Increase revenues - permissive.
The rule makes it easier for local units of government to leverage grant funds and thus provides a greater financial incentive for local units to apply for grants.
Types of local governmental units affected
Towns, villages, cities, counties, lake districts, school districts
Fund sources affected
SEG
Affected chapter 20 appropriations
Section 20.370 (6) (as), Stats.
Notice of Hearing
Occupational Therapists Affiliated Credentialing Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Occupational Therapists Affiliated Credentialing Board in ss. 15.085 (5) (b), 227.11 (2) and 448.965 (2), Stats., and interpreting s. 448.96 (4) and (6), Stats, the Occupational Therapists Affiliated Credentialing Board will hold a public hearing at the time and place indicated below to consider an order to renumber and amend section OT 4.04 (4); and to create sections OT 1.02 (3m) and 4.04 (4) (b), relating to occupational therapist supervision of occupational therapy assistants.
Hearing Information
Date:   July 15, 2008
Time:   9:30 A.M.
Location:   1400 East Washington Avenue
  (Enter at 55 North Dickinson Street)
  Room 121A
  Madison, Wisconsin
Appearances at Hearing and Submission of Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may be submitted to Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935, or by email to pamela.haack@drl. state.wi.us. Comments must be received on or before July 17, 2008, to be included in the record of rule-making proceedings.
Agency Contact Person
Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935; telephone 608-266-0495; email pamela.haack@drl.state.wi.us.
Analysis Prepared by the Department of Regulation and Licensing
Statutes interpreted
Section 448.96 (4) and (6), Stats.
Statutory authority
Sections 15.085 (5) (b), 227.11 (2) and 448.965 (2), Stats.
Explanation of agency authority
The Occupational Therapists Affiliated Credentialing Board has the authority to promulgate rules under s. 448.965, Stats., that define the scope of practice of occupational therapy or the scope of practice of assisting in the practice of occupational therapy.
Related statutes or rule
There are no other statues or rules other than those listed above.
Plain language analysis
Section OT 4.04 (4) is being modified to address the frequency of contacts that an occupational therapist must have with an occupational therapy assistant. In so doing, the board intends to add a greater measure of flexibility for these licensees since the existing provisions were often found to be burdensome to implement. Furthermore, a new provision is being added to define “direct contact" between an occupational therapist and an occupational therapy assistant.
SECTION 1 creates a definition of “direct contact" between an occupational therapist and an occupational therapy assistant. Communication between the two may be face-to-face, by telephone, electronic communication, or group communication.
SECTION 2 amends the frequency of direct contacts that an occupational therapist (OT) must have with an occupational therapy assistant (OTA). Under this proposal, the required contact between the OT and OTA must be a minimum of once a calendar month or every tenth session of occupational therapy, whichever is sooner. The contacts need not be held during a treatment session, nor must the meetings be held simultaneously with the OT, OTA, and client. The rule identifies that the purpose of the meetings is to review the progress and effectiveness of treatment.
SECTION 3 requires the occupational therapist to document supervisory activities, including the client's name, status, and plan.
Comparison with federal regulations
There is no existing or proposed federal regulation for summary and comparison.
Comparison with rules in adjacent states
Iowa: Occupational therapists must provide direct, on-site and in-sight supervision for a minimum of four (4) hours per month to occupational therapy assistants. They must also identify in the treatment plan what has specifically been delegated to the occupational therapy assistant.
Websites: http://www2.legis.state.ia.us/Rules/Current/ iac/645iac/645206/645206.pdf
Illinois: Supervision is required of occupational therapy assistants depending upon the varying patterns as determined by the demands of the areas of patient/client service and the competency of the individual assistant. The supervision is structured according to the assistant's qualifications, position, level of preparation, depth of experience and the environment within which he/she functions. However, there are minimal supervisory requirements. For instance, for an occupational therapy assistant who has less than one year of work experience, a minimum of 5% on-site, face-to-face supervision per month by an occupational therapist is required.
Website: http://www.ilga.gov/commission/jcar/admin code/068/068013150001630R.html
Michigan: Michigan does not appear to have any specific rules governing the supervisory requirements for occupational therapy assistants. Their rules appear to be limited to obtaining a credential.
Website: http://www.state.mi.us/orr/emi/admincode. asp?AdminCode=Department&Dpt=CH&Level_1=Bureau+of+Health+Professions
Minnesota: Minnesota requires face-to-face collaboration between an occupational therapist and an occupational therapy assistant every two weeks, at a minimum. Face-to-face collaboration is required more frequently if necessary to execute a patient's care.
Summary of factual data and analytical methodologies:
The board reviewed comments from occupational therapy professionals and held discussions during open session of its meetings regarding the impact of current supervision rules on the provision of care.
Analysis and supporting documents used to determine effect on small business
No significant impact on small businesses is anticipated. There are no additional compliance or paperwork requirements.
Section 227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Initial Regulatory Flexibility Analysis
These proposed rules will have no significant economic impact on a substantial number of small businesses, as defined in s. 227.114 (1), Stats. The Department's Regulatory Review Coordinator may be contacted by email at larry.martin@drl.state.wi.us, or by calling (608) 266-8608.
Fiscal Estimate
Summary
The department estimates that the proposed rule will have no significant fiscal impact.
Anticipated costs incurred by private sector
The department finds that this rule has no significant fiscal effect on the private sector.
Text of Proposed Rule
SECTION 1. OT 1.02 (3m) is created to read:
(3m) “Direct contact" means an occupational therapist shall communicate with an occupational therapy assistant face-to-face, or by telephone, electronic communication, or group conferences.
SECTION 2. OT 4.04 (4) is renumbered OT 4.04 (4) (a) and is amended to read:
(4) (a) When general supervision is allowed, the supervising occupational therapist shall have direct contact on the premises with the occupational therapy assistant and face-to face contact with the client at least once every 2 weeks. In the interim between direct contacts, the occupational therapist shall maintain contact with the occupational therapy assistant by telephone, written reports and group conferences. The occupational therapist shall record in writing a specific description of the supervisory activities undertaken for each occupational therapy assistant. The written record shall include client name, status and plan for each client discussed a minimum of one time per calendar month or after the tenth session of occupational therapy, whichever is sooner. The direct contact meetings with the occupational therapy assistant may be held simultaneously or separately from the face-to-face client meetings. These meetings do not need to be held at or during a treatment session, but are intended to review the progress and effectiveness of treatment.
SECTION 3. OT 4.04 (4) (b) is created to read:
(b) The occupational therapist shall record in writing a specific description of the supervisory activities undertaken for each occupational therapy assistant. The written record shall include client name, status and plan for each client discussed.
Notice of Hearing
Pharmacy Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Pharmacy Examining Board, the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order adopting emergency rules to repeal sections Phar 13.02 (11) (b) to (e), 13.03, 13.04 and 13.06 (3); to renumber section Phar 13.02 (11) (f); to renumber and amend section Phar 13.02 (6); to amend sections Phar 13.02 (8), (9), (11) (intro.) and (a), 13.05 (2), 13.08, 13.09 (intro.) and (3), 13.10 (3), 13.11 (1) to (4), 13.12 (1) to (3), 13.13 (title) and (1) to (4), 13.14 (1) (intro.), (a) to (c), and (2), 13.15 (4), 13.16 and 13.17 (1); and to create sections Phar 13.02 (3m), (11) (b) to (d), (f) to (m) and 13.055, relating to the regulation of wholesale prescription drug distributors.
Hearing Information
Date:   July 23, 2008
Time:   9:45 a.m.
Location:   1400 East Washington Avenue
  (Enter at 55 North Dickinson Street)
  Room 121A
  Madison, Wisconsin
Appearances at Hearing and Submission of Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Legal Counsel, P.O. Box 8935, Madison, Wisconsin 53708 or by email at pamela.haack@drl.state.wi.us. Written comments must be received by July 25, 2008, to be included in the record of rule-making proceedings.
Agency Contact Person
Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708; telephone 608-266-0495; email at pamela.haack@ drl.state.wi.us.
Analysis prepared by the Department of Regulation and Licensing.
Statutes interpreted
Statutory authority
Explanation of agency authority
The Wisconsin Pharmacy Examining Board has authority under ch. 450, Stats., as amended by 2007 Wisconsin Act 20, to promulgate rules for the regulation of wholesale prescription drug distributors.
Related statutes or rules
Ch. 961, Stats., 21 CFR s. 203.50.
Plain language analysis
This emergency rule implements the statutory changes set forth in the drug distributor portions of 2007 Wisconsin Act 20. Several key areas are addressed by this emergency rule including, newly required enhanced qualifications for distributor licensing, inspection requirements, identification and qualification of a designated representative, bonding requirements and additional recordkeeping requirements including where appropriate, the maintaining of drug distribution pedigrees.
SECTION 1 requires a licensed manufacturer to maintain and update at least once per month a list of the manufacturer's authorized distributors of record.
SECTION 2 defines “department."
SECTION 3 amends the definition of “wholesale distributor."
SECTION 4 amends the definitions of “facility" and “manufacturer."
SECTION 5 amends the definition of “wholesale distribution."
SECTION 6 repeals portions of the definition of “wholesale distribution" which are no longer applicable.
SECTION 7 amends the definition of “wholesale distribution."
SECTION 8 renumbers and SECTION 9 creates additional provisions for the definition of “wholesale distribution."
SECTION 10 repeals two licensure provisions no longer statutorily required.
SECTION 11 amends a licensure requirement to require proof of an inspection.
SECTION 12 creates a licensure requirement to require a surety bond or irrevocable letter of credit to be filed with the department.
SECTION 13 repeals a requirement that is not statutorily required.
SECTIONS 14 to 19 remove the reference to “devices."
SECTION 20 amends a recordkeeping requirement.
SECTION 21 amends a recordkeeping requirement.
SECTION 22 adds “designated representative" to the list of required responsible persons.
SECTION 23 amends compliance with federal, state and local laws to include the requirement of an electronic track and trace drug pedigree under certain conditions.
Comparison with federal regulations
21 CFR § 203 included federal regulations relating to drug distributorships and drug pedigrees. Only portions of the enacted regulations could be applied after a preliminary injunction that stayed certain provisions was ordered on December 5, 2006 in RXUSA Wholesalers, Inc. v. HHS.
Comparison with rules in adjacent states
Minnesota:
Statutes: Ch. 151 - Each separate facility is required to be licensed (with an annual renewal) and must satisfy a number of conditions relating to storage, security, container labeling, records retention (must be separately maintained and available for inspection within 2 working days of a board request), management and ownership, inspection procedures. An annual report to the board is required. The board may adopt reciprocity rules if the other state has comparable legal standards and that state would also extend reciprocal treatment.
Rules: § 6800 – 1400 - Distributors must track the source of all drugs, along with the name and address of the seller or transferor and the address of the location from where the shipment was sent. Records must be kept for two years, and lists of responsible persons must be maintained with a description of duties and qualifications.
Iowa:
Rules: § 657 - An annual renewal is required. Board inspectors inspect new distribution locations in Iowa. Minimum qualifications are specified in rule. Lists of officers, directors, managers and others in charge must be maintained. Distributors must verify the authority of the person or business to whom the distribution is intended prior to distribution. If distribution is to sales or manufacturers' representatives, distributors must ensure they maintain distribution records. There are facility, security, storage and record-keeping requirements included. Transaction records must include the source of the drug, name and address of seller/transferor, and the address from where it is shipped, in addition to the recipient, the name and address of the purchaser or transferee and the address where drugs are shipped. Records must be maintained for two years. The code contains an ethical conduct provision.
Illinois:
Rules: Chapter 111 - It is unlawful to distribute a drug for less than fair market value not in accordance with law.
Michigan:
Statute: Chapter 333 - May designate an individual to be the pharmacy, manufacturer, or wholesale distributor licensee.
Rules: § 338 - All locations used in connection with distribution must be listed in the application. Includes requirements for storage, handling and records. Inspections may be performed “at reasonable times in reasonable places." A manufacturer or distributor may only distribute to persons licensed by the board or licensed to prescribe. Procedures for examining containers received and sent for identity to prevent contamination and ensure fitness for distribution. Must record the source and address of the seller or transferor and the location from where the drugs were shipped. Records must be maintained for two years. There must be written policies for receipt, security, storage, inventory and distribution of drugs, plus a crisis management policy. Identity information for persons in charge of distribution, storage and handling must be maintained.
Summary of factual data and analytical methodologies
Department staff reviewed the portions of 2007 Wisconsin Act 20 that pertain to drug distributorships and laws and rules from other states prior to preparing the emergency rules.
Analysis and supporting documents used to determine effect on small business
The statute requires an inspection of drug distributors to be completed prior to the June 1, 2008 effective date of the rule. A review of the department's license files revealed there are approximately 100 distributors licensed in Wisconsin that may not have been inspected within the three years prior to being licensed. The board set the bond or letter of credit amount at $5,000 after a review of the statutory language and other states' requirements.
Section 227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Initial Regulatory Flexibility Analysis
These rules will have no significant economic impact on a substantial number of small businesses, as defined in s. 227.114 (1), Stats. The $5,000 bond or letter of credit is estimated to cost $200.00 to purchase. The Department's Regulatory Review Coordinator may be contacted by email at larry.martin@drl.state.wi.us, or by calling 608-266-8608.
Fiscal Estimate
Summary
The department estimates that this rule will require staff time in the Office of Legal Counsel. The total one-time salary and fringe costs are estimated at $2,457.
Anticipated costs incurred by private sector
The department finds that this rule has no significant fiscal effect on the private sector.
Text of Proposed Rule
SECTION 1. Phar 12.06 is created to read:
Phar 12.06 Authorized distributors of record. A manufacturer shall maintain and update at least once per month a list of the manufacturer's authorized distributors of record.
SECTION 2. Phar 13.02 (3m) is created to read:
Phar 13.02 (3m) “Department" means the department of regulation and licensing.
SECTION 3. Phar 13.02 (6) is renumbered 13.02 (12) and is amended to read:
Phar 13.02 (12) “Distributor" “Wholesale distributor" means any a person engaged in the wholesale distribution of prescription drugs or devices, including, but not limited to, manufacturers; repackers repackagers; own-label distributors; private-label distributors; jobbers; brokers; warehouses, including manufacturers' and distributors' warehouses, chain drug warehouses, and wholesale drug warehouses; manufacturers' exclusive distributors; manufacturers' authorized distributors of record; prescription drug wholesalers and distributors; independent wholesale prescription drug traders; and pharmacies that conduct wholesale distributions not coincident to the compounding, packaging, labeling and dispensing of prescription drugs and devices 3rd party logistics providers; retail pharmacies that conduct wholesale distribution; and chain pharmacy warehouses that conduct wholesale distribution.
SECTION 4. Phar 13.02 (8) and (9) are amended to read:
Phar 13.02 (8) “Facility" means a location at which where a wholesale distribution operations are conducted distributor stores, handles, repackages, or offers for sale prescription drugs.
(9) “Manufacturer" means any a person who is engaged in manufacturing, preparing, propagating, compounding, processing, packaging, repackaging, or labeling of a prescription drug or device licensed or approved by the federal food and drug administration to engage in the manufacture of drugs or devices, consistent with the definition of “manufacturer" under the federal food and drug administration's regulations and interpreted guidance implementing the federal prescription drug marketing act.
SECTION 5. Phar 13.02 (11) (intro.) and (a) are amended to read:
Phar 13.02 (11) (intro.) “Wholesale distribution" means distribution of a prescription drugs or devices to persons drug to a person other than a consumer or patient. The term does not include, but does not include any of the following:
(a) Intracompany sales, of prescription drugs which include any transaction or transfer between any division, subsidiary, parent, affiliated or related company under the common ownership and or control of a corporate entity or any transaction between co-licensees or a co-licensed product.
SECTION 6. Phar 13.02 (11) (b) to (e) are repealed.
SECTION 7. Phar 13.02 (11) (b) to (d) are created to read:
Phar 13.02 (11) (b) The sale, purchase, distribution, trade, or transfer of a prescription drug or offer to sell, purchase, distribute, trade, or transfer a prescription drug for emergency medical reasons.
(c) The distribution of prescription drug samples, if the distribution is permitted under 21 CFR 353 (d).
(d) Drug returns, when conducted by a hospital, health care entity, or charitable institution as provided in 21 CFR 203.23.
SECTION 8. Phar 13.02 (11) (f) is renumbered 13.02 (11) (e).
SECTION 9. Phar 13.02 (11) (f) to (m) are created to read:
Phar 13.02 (11) (f) The sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug pursuant to a prescription.
(g) The sale, transfer, merger, or consolidation of all or part of the business of a pharmacy from or with another pharmacy, whether accomplished as a purchase and sale of stock or business assets.
(h) The sale, purchase, distribution, trade, or transfer of a prescription drug from one authorized distributor of record to one additional authorized distributor of record, if the manufacturer states in writing to the receiving authorized distributor of record that the manufacturer is unable to supply the drug and the supplying authorized distributor of record states in writing that the drug has previously been exclusively in the normal distribution channel.
(i) The delivery of, or offer to deliver, a prescription drug by a common carrier solely in the common carrier's usual course of business of transporting prescription drugs, if the common carrier does not store, warehouse, or take legal ownership of the drug.
(j) A transaction excluded from the definition of “wholesale distribution" under 21 CFR 203.3 (cc).
(k) The donation or distribution of a prescription drug under s. 255.056, Stats.
(L) The transfer from a retail pharmacy or pharmacy warehouse of an expired, damaged, returned, or recalled prescription drug to the original manufacturer or original wholesale distributor or to a 3rd-party returns processor or reverse distributor.
(m) The return of a prescription drug, if the return is authorized by the law of this state.
SECTION 10. Phar 13.03 and 13.04 are repealed.
SECTION 11. Phar 13.05 (2) is amended to read:
Phar 13.05 (2) Pass an inspection of the facility conducted by the board or its representative in the 3-year period immediately preceding the date of the application by the board, a pharmacy examining board of another state, the National Association of Boards of Pharmacy, or another accrediting body recognized by the board, with the date of each inspection to determine if the location meets standards specified in ss. Phar 13.08 to 13.11, 21 USC 351 and 352 and 21 CFR 211.142 (b).
SECTION 12. Phar 13.055 is created to read:
Phar 13.055 Surety bond, irrevocable letter of credit. The applicant shall supply a surety bond or irrevocable letter of credit in the amount of $5,000.00, which is issued by a company authorized to do business in Wisconsin. The form of the bond or letter of credit shall be approved by the department and conditioned so that the state shall be fully compensated or reimbursed for, and shall be used to, secure payment of fees or costs that relate to the issuance of a wholesale distributor's license that have not been paid within 30 days after the fees or costs have become final. The bond or letter shall be valid for the entire period of an unexpired license issued to the applicant. No claim may be made against a bond or other security under this section more than one year after the date on which the applicant's wholesale distributor's license expires.
SECTION 13. Phar 13.06 (3) is repealed.
SECTION 14. Phar 13.08 is amended to read:
Phar 13.08 Personnel. A distributor shall employ adequate personnel with the education and experience necessary to safely and lawfully engage in the wholesale distribution of drugs and devices.
SECTION 15. Phar 13.09 (intro.) and (3) are amended to read:
Phar 13.09 Facility requirements. (intro.) All facilities at which prescription drugs or devices are stored, warehoused, handled, held, offered, marketed, or displayed shall:
(3) Have a quarantine area for storage of prescription drugs or devices that are outdated, damaged, deteriorated, misbranded, or adulterated, or that are in immediate or sealed secondary containers that have been opened;
SECTION 16. Phar 13.10 (3) is amended to read:
Phar 13.10 (3) Entry into areas where prescription drugs or devices are held is limited to authorized personnel;
SECTION 17. Phar 13.11 (1) to (4) are amended to read:
Phar 13.11 Storage requirements. (1) All prescription drugs and devices stored in a facility shall be stored at appropriate temperatures and under appropriate conditions in accordance with requirements, if any, in the labeling of such products, or with requirements in the current edition of an official compendium.
(2) If no storage requirements are established for a prescription drug or device, the product may be held at a controlled room temperature, as defined in an official compendium, to help ensure that its identity, strength, quality, and purity are not adversely affected.
(3) Appropriate manual, electromechanical, or electronic temperature and humidity recording equipment, devices, and/or or logs shall be utilized to document proper storage of prescription drugs and devices.
(4) The recordkeeping requirements in s. Phar 13.14 shall be followed for all stored drugs and devices.
SECTION 18. Phar 13.12 (1) to (3) are amended to read:
Phar 13.12 Examination of materials requirements. (1) Upon receipt by a facility, each outside shipping container shall be visually examined for identity and to prevent the acceptance of contaminated prescription drugs or devices, or prescription drugs or devices that are otherwise unfit for distribution. This examination shall be adequate to reveal container damage that would suggest possible contamination or other damage to the contents.
(2) Each outgoing shipment from a facility shall be carefully inspected for identity of the prescription drug or device and to ensure that there is no delivery of prescription drugs or devices that have been damaged in storage or held under improper conditions.
(3) The recordkeeping requirements in s. Phar 13.14 shall be followed for all incoming and outgoing prescription drugs and devices at a facility.
SECTION 19. Phar 13.13 (title) and (1) to (4) are amended to read:
Phar 13.13 (title) Returned, damaged and outdated prescription drug and device requirements. (1) Prescription drugs and devices in a facility that are outdated, damaged, deteriorated, misbranded, or adulterated shall be quarantined and physically separated from other prescription drugs and devices until they are destroyed or returned to their supplier.
(2) Any prescription drugs or devices in a facility whose immediate or sealed outer or sealed secondary containers have been opened or used shall be identified as such, and shall be quarantined and physically separated from other prescription drugs and devices until they are either destroyed or returned to the supplier.
(3) If the conditions under which a prescription drug or device has been returned to a facility cast doubt on the product's safety, identity, strength, quality, or purity, then the product shall be destroyed, or returned to the supplier, unless examination, testing, or other investigation proves that the product meets appropriate standards of safety, identity, strength, quality, and purity. In determining whether the conditions under which a product has been returned cast doubt on its safety, identity, strength, quality, or purity, the distributor shall consider, among other things, the conditions under which the product has been held, stored, or shipped before or during its return and the condition of the product and its container, carton, or labeling, as a result of storage or shipping.
(4) The recordkeeping requirements in s. Phar 13.14 shall be followed for all outdated, damaged, deteriorated, misbranded, or adulterated prescription drugs and devices.
SECTION 20. Phar 13.14 (1) (intro.) and (a) to (c), and (2) are amended to read:
Phar 13.14 Recordkeeping requirements. (1) (intro.) A distributor shall establish and maintain inventories and records of all transactions regarding the receipt and distribution or other disposition of prescription drugs and devices. These records shall include the following information:
(a) The source of the drugs or device, including the name and principal address of the seller or transferor, and the address of the location from which the drugs or devices were shipped;
(b) The identity and quantity of the drugs or devices received and distributed or disposed of; and
(c) The dates of receipt and distribution or other disposition of the drugs or devices.
(2) Inventories and records shall be made available for inspection and copying by the board, its authorized representatives, and authorized representatives of federal, state and local law enforcement agencies for a period of 2 3 years following distribution or other disposition of the drugs or devices.
SECTION 21. Phar 13.15 (intro.), (1), (2) (intro.) and (b), and (4) are amended to read:
Phar 13.15 Written policies and procedures. (intro.) A distributor shall establish, maintain, and adhere to written policies and procedures, which shall be followed for the receipt, security, storage, inventory, and distribution of prescription drugs and devices, including policies and procedures for identifying, recording, and reporting losses or thefts, and for correcting all errors and inaccuracies in inventories. A distributor shall include in their written policies and procedures the following:
(1) A procedure to ensure that the oldest approved stock of a prescription drug or device is distributed first. The procedure may permit deviation from this requirement if the deviation is temporary and appropriate.
(2) (intro.) A procedure to be followed for handling recalls and withdrawals of prescription drugs and devices. The procedure shall be adequate to deal with recalls and withdrawals due to:
(b) Any voluntary action by the manufacturer to remove defective or potentially defective drugs or devices from the market; or
(4) A procedure to ensure that any outdated prescription drugs or devices are segregated from other products and either returned to the manufacturer or destroyed. This procedure shall provide for written documentation of the disposition of outdated prescription drugs or devices. This documentation shall be maintained for 2 3 years after disposition of the outdated drugs or devices.
SECTION 22. Phar 13.16 is amended to read:
Phar 13.16 Responsible persons. A distributor shall establish and maintain lists of officers, directors, managers, and other persons the designated representative in charge of wholesale drug and device distribution, storage, and handling, including a description of their duties and a summary of their qualifications.
SECTION 23. Phar 13.17 (1) is amended to read:
Phar 13.17 Compliance with federal, state and local laws. (1) A distributor shall operate in compliance with applicable federal, state, and local laws and regulations. A distributor shall operate in compliance with any applicable federal electronic track and trace pedigree system implemented after July 1, 2011, unless an earlier implementation date is mandated by federal law which explicitly preempts state law. A distributor that deals in controlled substances shall register with the drug enforcement administration.
Finding of Emergency
The board has made a finding of emergency. The board finds that failure to have the proposed rules in effect on June 1, 2008, the effective date of the applicable provisions of 2007 Wisconsin Act 20, will create a danger to the public health, safety and welfare, by disrupting the wholesale distribution of prescription drugs in the state of Wisconsin.
Notice of Hearing
Pharmacy Examining Board
NOTICE IS HEREBY GIVEN that the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order to repeal sections Phar 13.02 (11) (b) to (e), 13.03, 13.04 and 13.06 (3); to renumber section Phar 13.02 (11) (f); to renumber and amend section Phar 13.02 (6); to amend sections Phar 13.02 (8), (9), (11) (intro.) and (a), 13.05 (2), 13.08, 13.09 (intro.) and (3), 13.10 (3), 13.11 (1) to (4), 13.12 (1) to (3), 13.13 (title) and (1) to (4), 13.14 (1) (intro.), (a) to (c), and (2), 13.15 (4), 13.16 and 13.17 (1); and to create sections Phar 13.02 (3m), (11) (b) to (d), (f) to (m) and 13.055, relating to the regulation of wholesale prescription drug distributors.
Hearing Information
Date:   July 23, 2008
Time:   9:45 a.m.
Location:   1400 East Washington Avenue
  (Enter at 55 North Dickinson Street)
  Room 121A
  Madison, Wisconsin
Appearances at Hearing and Submission of Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Legal Counsel, P.O. Box 8935, Madison, Wisconsin 53708 or by email at pamela.haack@drl.state.wi.us. Written comments must be received by July 25, 2008, to be included in the record of rule-making proceedings.
Agency Contact Person
Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708; telephone 608-266-0495; email at pamela.haack@ drl.state.wi.us.
Analysis Prepared by the Department of Regulation and Licensing
Statutes interpreted
Statutory authority
Explanation of agency authority
The Wisconsin Pharmacy Examining Board has authority under ch. 450, Stats., as amended by 2007 Wisconsin Act 20, to promulgate rules for the regulation of wholesale prescription drug distributors.
Related statutes or rules
Ch. 961, Stats., 21 CFR s. 203.50.
Plain language analysis
This proposed rule-making order implements the statutory changes set forth in the drug distributor portions of 2007 Wisconsin Act 20. Several key areas are addressed by this proposed rule-making, including, newly required enhanced qualifications for distributor licensing, inspection requirements, identification and qualification of a designated representative, bonding requirements and additional recordkeeping requirements including where appropriate, the maintaining of drug distribution pedigrees.
SECTION 1 requires a licensed manufacturer to maintain and update at least once per month a list of the manufacturer's authorized distributors of record.
SECTION 2 defines “department."
SECTION 3 amends the definition of “wholesale distributor."
SECTION 4 amends the definitions of “facility" and “manufacturer."
SECTION 5 amends the definition of “wholesale distribution."
SECTION 6 repeals portions of the definition of “wholesale distribution" which are no longer applicable.
SECTION 7 amends the definition of “wholesale distribution."
SECTION 8 renumbers and SECTION 9 creates additional provisions for the definition of “wholesale distribution."
SECTION 10 repeals two licensure provisions no longer statutorily required.
SECTION 11 amends a licensure requirement to require proof of an inspection.
SECTION 12 creates a licensure requirement to require a surety bond or irrevocable letter of credit to be filed with the department.
SECTION 13 repeals a requirement that is not statutorily required.
SECTIONS 14 to 19 remove the reference to “devices."
SECTION 20 amends a recordkeeping requirement.
SECTION 21 amends a recordkeeping requirement.
SECTION 22 adds “designated representative" to the list of required responsible persons.
SECTION 23 amends compliance with federal, state and local laws to include the requirement of an electronic track and trace drug pedigree under certain conditions.
Comparison with rules in adjacent states
Minnesota:
Statutes: Ch. 151 - Each separate facility is required to be licensed (with an annual renewal) and must satisfy a number of conditions relating to storage, security, container labeling, records retention (must be separately maintained and available for inspection within 2 working days of a board request), management and ownership, inspection procedures. An annual report to the board is required. The board may adopt reciprocity rules if the other state has comparable legal standards and that state would also extend reciprocal treatment.
Rules: § 6800 – 1400 - Distributors must track the source of all drugs, along with the name and address of the seller or transferor and the address of the location from where the shipment was sent. Records must be kept for two years, and lists of responsible persons must be maintained with a description of duties and qualifications.
Iowa:
Rules: § 657 - An annual renewal is required. Board inspectors inspect new distribution locations in Iowa. Minimum qualifications are specified in rule. Lists of officers, directors, managers and others in charge must be maintained. Distributors must verify the authority of the person or business to whom the distribution is intended prior to distribution. If distribution is to sales or manufacturers' representatives, distributors must ensure they maintain distribution records. There are facility, security, storage and record-keeping requirements included. Transaction records must include the source of the drug, name and address of seller/transferor, and the address from where it is shipped, in addition to the recipient, the name and address of the purchaser or transferee and the address where drugs are shipped. Records must be maintained for two years. The code contains an ethical conduct provision.
Illinois:
Rules: Chapter 111 - It is unlawful to distribute a drug for less than fair market value not in accordance with law.
Michigan:
Statute: Chapter 333 - May designate an individual to be the pharmacy, manufacturer, or wholesale distributor licensee.
Rules: § 338 - All locations used in connection with distribution must be listed in the application. Includes requirements for storage, handling and records. Inspections may be performed “at reasonable times in reasonable places." A manufacturer or distributor may only distribute to persons licensed by the board or licensed to prescribe. Procedures for examining containers received and sent for identity to prevent contamination and ensure fitness for distribution. Must record the source and address of the seller or transferor and the location from where the drugs were shipped. Records must be maintained for two years. There must be written policies for receipt, security, storage, inventory and distribution of drugs, plus a crisis management policy. Identity information for persons in charge of distribution, storage and handling must be maintained.
Summary of factual data and analytical methodologies
Department staff reviewed the portions of 2007 Wisconsin Act 20 that pertain to drug distributorships and laws and rules from other states prior to preparing this proposed rule-making order.
Analysis and supporting documents used to determine effect on small business
The statute requires an inspection of drug distributors to be completed prior to the June 1, 2008 effective date of the rule. A review of the department's license files revealed there are approximately 100 distributors licensed in Wisconsin that may not have been inspected within the three years prior to being licensed. The board set the bond or letter of credit amount at $5,000 after a review of the statutory language and other states' requirements.
Section 227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Initial Regulatory Flexibility Analysis
These rules will have no significant economic impact on a substantial number of small businesses, as defined in s. 227.114 (1), Stats. The $5,000 bond or letter of credit is estimated to cost $200.00 to purchase. The Department's Regulatory Review Coordinator may be contacted by email at larry.martin@drl.state.wi.us, or by calling 608-266-8608.
Fiscal Estimate
Summary
The department estimates that this rule will require staff time in the Office of Legal Counsel. The total one-time salary and fringe costs are estimated at $2,457.
Anticipated costs incurred by private sector
The department finds that this rule has no significant fiscal effect on the private sector.
Text of Proposed Rule
SECTION 1. Phar 12.06 is created to read:
Phar 12.06 Authorized distributors of record. A manufacturer shall maintain and update at least once per month a list of the manufacturer's authorized distributors of record.
SECTION 2. Phar 13.02 (3m) is created to read:
Phar 13.02 (3m) “Department" means the department of regulation and licensing.
SECTION 3. Phar 13.02 (6) is renumbered 13.02 (12) and is amended to read:
Phar 13.02 (12) “Distributor" “Wholesale distributor" means any a person engaged in the wholesale distribution of prescription drugs or devices, including, but not limited to, manufacturers; repackers repackagers; own-label distributors; private-label distributors; jobbers; brokers; warehouses, including manufacturers' and distributors' warehouses, chain drug warehouses, and wholesale drug warehouses; manufacturers' exclusive distributors; manufacturers' authorized distributors of record; prescription drug wholesalers and distributors; independent wholesale prescription drug traders; and pharmacies that conduct wholesale distributions not coincident to the compounding, packaging, labeling and dispensing of prescription drugs and devices 3rd-party logistics providers; retail pharmacies that conduct wholesale distribution; and chain pharmacy warehouses that conduct wholesale distribution.
SECTION 4. Phar 13.02 (8) and (9) are amended to read:
Phar 13.02 (8) “Facility" means a location at which where a wholesale distribution operations are conducted distributor stores, handles, repackages, or offers for sale prescription drugs.
(9) “Manufacturer" means any a person who is engaged in manufacturing, preparing, propagating, compounding, processing, packaging, repackaging, or labeling of a prescription drug or device licensed or approved by the federal food and drug administration to engage in the manufacture of drugs or devices, consistent with the definition of “manufacturer" under the federal food and drug administration's regulations and interpreted guidance implementing the federal prescription drug marketing act.
SECTION 5. Phar 13.02 (11) (intro.) and (a) are amended to read:
Phar 13.02 (11) (intro.) “Wholesale distribution" means distribution of a prescription drugs or devices to persons drug to a person other than a consumer or patient. The term does not include, but does not include any of the following:
(a) Intracompany sales, of prescription drugs which include any transaction or transfer between any division, subsidiary, parent, affiliated or related company under the common ownership and or control of a corporate entity or any transaction between co-licensees or a co-licensed product.
SECTION 6. Phar 13.02 (11) (b) to (e) are repealed.
SECTION 7. Phar 13.02 (11) (b) to (d) are created to read:
Phar 13.02 (11) (b) The sale, purchase, distribution, trade, or transfer of a prescription drug or offer to sell, purchase, distribute, trade, or transfer a prescription drug for emergency medical reasons.
(c) The distribution of prescription drug samples, if the distribution is permitted under 21 CFR 353 (d).
(d) Drug returns, when conducted by a hospital, health care entity, or charitable institution as provided in 21 CFR 203.23.
SECTION 8. Phar 13.02 (11) (f) is renumbered 13.02 (11) (e).
SECTION 9. Phar 13.02 (11) (f) to (m) are created to read:
Phar 13.02 (11) (f) The sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug pursuant to a prescription.
(g) The sale, transfer, merger, or consolidation of all or part of the business of a pharmacy from or with another pharmacy, whether accomplished as a purchase and sale of stock or business assets.
(h) The sale, purchase, distribution, trade, or transfer of a prescription drug from one authorized distributor of record to one additional authorized distributor of record, if the manufacturer states in writing to the receiving authorized distributor of record that the manufacturer is unable to supply the drug and the supplying authorized distributor of record states in writing that the drug has previously been exclusively in the normal distribution channel.
(i) The delivery of, or offer to deliver, a prescription drug by a common carrier solely in the common carrier's usual course of business of transporting prescription drugs, if the common carrier does not store, warehouse, or take legal ownership of the drug.
(j) A transaction excluded from the definition of “wholesale distribution" under 21 CFR 203.3 (cc).
(k) The donation or distribution of a prescription drug under s. 255.056, Stats.
(L) The transfer from a retail pharmacy or pharmacy warehouse of an expired, damaged, returned, or recalled prescription drug to the original manufacturer or original wholesale distributor or to a 3rd-party returns processor or reverse distributor.
(m) The return of a prescription drug, if the return is authorized by the law of this state.
SECTION 10. Phar 13.03 and 13.04 are repealed.
SECTION 11. Phar 13.05 (2) is amended to read:
Phar 13.05 (2) Pass an inspection of the facility conducted by the board or its representative in the 3-year period immediately preceding the date of the application by the board, a pharmacy examining board of another state, the National Association of Boards of Pharmacy, or another accrediting body recognized by the board, with the date of each inspection to determine if the location meets standards specified in ss. Phar 13.08 to 13.11, 21 USC 351 and 352 and 21 CFR 211.142 (b).
SECTION 12. Phar 13.055 is created to read:
Phar 13.055 Surety bond, irrevocable letter of credit. The applicant shall supply a surety bond or irrevocable letter of credit in the amount of $5,000.00, which is issued by a company authorized to do business in Wisconsin. The form of the bond or letter of credit shall be approved by the department and conditioned so that the state shall be fully compensated or reimbursed for, and shall be used to, secure payment of fees or costs that relate to the issuance of a wholesale distributor's license that have not been paid within 30 days after the fees or costs have become final. The bond or letter shall be valid for the entire period of an unexpired license issued to the applicant. No claim may be made against a bond or other security under this section more than one year after the date on which the applicant's wholesale distributor's license expires.
SECTION 13. Phar 13.06 (3) is repealed.
SECTION 14. Phar 13.08 is amended to read:
Phar 13.08 Personnel. A distributor shall employ adequate personnel with the education and experience necessary to safely and lawfully engage in the wholesale distribution of drugs and devices.
SECTION 15. Phar 13.09 (intro.) and (3) are amended to read:
Phar 13.09 Facility requirements. (intro.) All facilities at which prescription drugs or devices are stored, warehoused, handled, held, offered, marketed, or displayed shall:
(3) Have a quarantine area for storage of prescription drugs or devices that are outdated, damaged, deteriorated, misbranded, or adulterated, or that are in immediate or sealed secondary containers that have been opened;
SECTION 16. Phar 13.10 (3) is amended to read:
Phar 13.10 (3) Entry into areas where prescription drugs or devices are held is limited to authorized personnel;
SECTION 17. Phar 13.11 (1) to (4) are amended to read:
Phar 13.11 Storage requirements. (1) All prescription drugs and devices stored in a facility shall be stored at appropriate temperatures and under appropriate conditions in accordance with requirements, if any, in the labeling of such products, or with requirements in the current edition of an official compendium.
(2) If no storage requirements are established for a prescription drug or device, the product may be held at a controlled room temperature, as defined in an official compendium, to help ensure that its identity, strength, quality, and purity are not adversely affected.
(3) Appropriate manual, electromechanical, or electronic temperature and humidity recording equipment, devices, and/or or logs shall be utilized to document proper storage of prescription drugs and devices.
(4) The recordkeeping requirements in s. Phar 13.14 shall be followed for all stored drugs and devices.
SECTION 18. Phar 13.12 (1) to (3) are amended to read:
Phar 13.12 Examination of materials requirements. (1) Upon receipt by a facility, each outside shipping container shall be visually examined for identity and to prevent the acceptance of contaminated prescription drugs or devices, or prescription drugs or devices that are otherwise unfit for distribution. This examination shall be adequate to reveal container damage that would suggest possible contamination or other damage to the contents.
(2) Each outgoing shipment from a facility shall be carefully inspected for identity of the prescription drug or device and to ensure that there is no delivery of prescription drugs or devices that have been damaged in storage or held under improper conditions.
(3) The recordkeeping requirements in s. Phar 13.14 shall be followed for all incoming and outgoing prescription drugs and devices at a facility.
SECTION 19. Phar 13.13 (title) and (1) to (4) are amended to read:
Phar 13.13 (title) Returned, damaged and outdated prescription drug and device requirements. (1) Prescription drugs and devices in a facility that are outdated, damaged, deteriorated, misbranded, or adulterated shall be quarantined and physically separated from other prescription drugs and devices until they are destroyed or returned to their supplier.
(2) Any prescription drugs or devices in a facility whose immediate or sealed outer or sealed secondary containers have been opened or used shall be identified as such, and shall be quarantined and physically separated from other prescription drugs and devices until they are either destroyed or returned to the supplier.
(3) If the conditions under which a prescription drug or device has been returned to a facility cast doubt on the product's safety, identity, strength, quality, or purity, then the product shall be destroyed, or returned to the supplier, unless examination, testing, or other investigation proves that the product meets appropriate standards of safety, identity, strength, quality, and purity. In determining whether the conditions under which a product has been returned cast doubt on its safety, identity, strength, quality, or purity, the distributor shall consider, among other things, the conditions under which the product has been held, stored, or shipped before or during its return and the condition of the product and its container, carton, or labeling, as a result of storage or shipping.
(4) The recordkeeping requirements in s. Phar 13.14 shall be followed for all outdated, damaged, deteriorated, misbranded, or adulterated prescription drugs and devices.
SECTION 20. Phar 13.14 (1) (intro.) and (a) to (c), and (2) are amended to read:
Phar 13.14 Recordkeeping requirements. (1) (intro.) A distributor shall establish and maintain inventories and records of all transactions regarding the receipt and distribution or other disposition of prescription drugs and devices. These records shall include the following information:
(a) The source of the drugs or device, including the name and principal address of the seller or transferor, and the address of the location from which the drugs or devices were shipped;
(b) The identity and quantity of the drugs or devices received and distributed or disposed of; and
(c) The dates of receipt and distribution or other disposition of the drugs or devices.
(2) Inventories and records shall be made available for inspection and copying by the board, its authorized representatives, and authorized representatives of federal, state and local law enforcement agencies for a period of 2 3 years following distribution or other disposition of the drugs or devices.
SECTION 21. Phar 13.15 (intro.), (1), (2) (intro.) and (b), and (4) are amended to read:
Phar 13.15 Written policies and procedures. (intro.) A distributor shall establish, maintain, and adhere to written policies and procedures, which shall be followed for the receipt, security, storage, inventory, and distribution of prescription drugs and devices, including policies and procedures for identifying, recording, and reporting losses or thefts, and for correcting all errors and inaccuracies in inventories. A distributor shall include in their written policies and procedures the following:
(1) A procedure to ensure that the oldest approved stock of a prescription drug or device is distributed first. The procedure may permit deviation from this requirement if the deviation is temporary and appropriate.
(2) (intro.) A procedure to be followed for handling recalls and withdrawals of prescription drugs and devices. The procedure shall be adequate to deal with recalls and withdrawals due to:
(b) Any voluntary action by the manufacturer to remove defective or potentially defective drugs or devices from the market; or
(4) A procedure to ensure that any outdated prescription drugs or devices are segregated from other products and either returned to the manufacturer or destroyed. This procedure shall provide for written documentation of the disposition of outdated prescription drugs or devices. This documentation shall be maintained for 2 3 years after disposition of the outdated drugs or devices.
SECTION 22. Phar 13.16 is amended to read:
Phar 13.16 Responsible persons. A distributor shall establish and maintain lists of officers, directors, managers, and other persons the designated representative in charge of wholesale drug and device distribution, storage, and handling, including a description of their duties and a summary of their qualifications.
SECTION 23. Phar 13.17 (1) is amended to read:
Phar 13.17 Compliance with federal, state and local laws. (1) A distributor shall operate in compliance with applicable federal, state, and local laws and regulations. A distributor shall operate in compliance with any applicable federal electronic track and trace pedigree system implemented after July 1, 2011, unless an earlier implementation date is mandated by federal law which explicitly preempts state law. A distributor that deals in controlled substances shall register with the drug enforcement administration.
Notice of Hearing
Public Instruction
NOTICE IS HEREBY GIVEN That pursuant to ss. 115.42 (4) and 227.11 (2) (a), Stats., and interpreting ss. 115.42, Stats., the Department of Public Instruction will hold a public hearing as follows to consider emergency and proposed permanent rules amended under Chapter PI 37, relating to grants for national teacher certification and master educator licensure. The hearing will be held as follows:
Hearing Information
Date and Time   Location
July 23, 2008   Madison
3:00 - 4:30 p.m.   GEF 3 Building, Room 041
    125 South Webster Street
The hearing site is fully accessible to people with disabilities. If you require reasonable accommodation to access any meeting, please call Tammy Huth, Assistant Director, Teacher Education, Professional Development and Licensing, at (608) 266-1788 or leave a message with the Teletypewriter (TTY) at (608) 267-2427 at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.
Copies of Rule and Contact Person
The administrative rule and fiscal note are available on the internet at http://dpi.wi.gov/pb/rulespg.html. A copy of the proposed rule and the fiscal estimate also may be obtained by sending an email request to lori.slauson@dpi.state.wi.us or by writing to:
Lori Slauson, Administrative Rules and Federal Grants Coordinator
Department of Public Instruction
125 South Webster Street
P.O. Box 7841
Madison, WI 53707
Submission of Written Comments
Written comments on the proposed rules received by Ms. Slauson at the above mail or email address no later than July 29, 2008, will be given the same consideration as testimony presented at the hearing.
Agency Contact Person
Tammy Huth, Assistant Director, Teacher Education, Professional Development and Licensing, (608) 266-1788 or tammy.huth@dpi.wi.gov.
Analysis Prepared by the Department of Public Instruction
Statute interpreted
Section 115.42, Wis. Stats.
Statutory authority
Sections 115.42 (4) and 227.11 (2) (a), Wis. Stats.
Explanation of agency authority
Section 115.42 (4), Wis. Stats., requires the department to promulgate rules to implement and administer this program, including all of the following:
  The application process, including necessary documentation.
  The selection process for grant recipients.
  The number of times that a teacher may be exempt from continuing professional education requirements.
Related statute or rule
Chapter PI 34, Wis. Admin. Code.
Plain language analysis
There are two ways an individual may receive a grant under the national teacher certification or master educator licensure program under s. 115.42, Stats.:
  Through a national process by obtaining a national certificate issued by the National Board for Professional Teaching Standards (NBPTS).
  Through a state process by completing the Wisconsin master educator assessment process.
Previous language under s. 115.42, Stats., allowed only persons certified through the national process to be awarded grants of up to $2,000 for the first year and $2,500 annually for nine years thereafter if certain conditions were met. 2007 Wisconsin Act 20, the biennial budget bill, modified s. 115.42, Stats., to allow persons receiving master educator licenses through the state process to also receive the grants. In addition, the Act provided an incentive to grant recipients to work in high poverty schools. Finally, the Act allows master educators through the state process to be exempt from continuing education requirements as are teachers certified through the national process.
To reflect statutory language, Chapter PI 37, Wis. Admin. Code, relating to Grants for National Teacher Certification, is being modified to: 1) allow master educators that have completed the Wisconsin master educator assessment process to receive a grant under the program, 2) allow master educators receiving licenses through the state process or teachers certified through the national process to receive $5,000 (rather than $2,500) if they work in a school in which at least 60 percent of the pupils enrolled are eligible for free or reduced-price lunch, and 3) allow master educators receiving licenses through the state process to be exempt from continuing education requirements.
The rules are also being modified to clarify that:
  The term “teacher" includes school psychologists, school counselors, and school social workers who are not under contract as an administrator.
  A teacher must be working as an instructor, school psychologist, school counselor, or school social worker for a minimum of 40 percent full-time equivalency for at least 180 days in a school year to qualify for a grant.
  A teacher may renew his or her 10-year national board certification or Wisconsin master educator license and continue receiving a grant under this program.
The provisions allowing teachers who have completed the state process to receive grants under this program first applies to persons who were licensed as Wisconsin master educators by the department on or after July 1, 2005.
The provision allowing teachers to receive $5,000, rather than $2,500, if employed in high poverty districts first applies to persons applying for a grant on or after July 1, 2007.
The provision requiring an applicant to work 40 percent full-time equivalency for at least 180 days in a school year first applies to persons applying for a grant on or after July 1, 2008.
Emergency rules were promulgated effective May 17, 2008, in order to establish the new application criteria and procedures to award grants to eligible applicants in the 2007-08 school year.
Comparison with federal regulations
None
Comparison with rules in adjacent states
Michigan and Minnesota - do not have rules relating to grants for national board certified teachers or state certified master educators.
Iowa - As of December 31, 2007, funds will no longer be available to new candidates. However, Iowa did provide a grant program to national board certified teachers (NBCTs) prior to that date. NBCTs that received the grant will be able to complete the 10 year grant process. To be eligible, an applicant must meet all of the following:
  The individual is a national board certified (NBC) teacher.
  The individual is a teacher.
  The individual is employed by a school district in Iowa.
  The individual receives a salary as a classroom teacher.
  The individual completes the application process.
  The individual has not received an NBC annual award for more than ten years.
The initial award is for one-half of the reimbursement fee charged by the NBPTS, or a prorated amount, if funds are not available.
An eligible teacher who received NBC certification prior to May 1, 2000, will receive an annual award of up to $5,000 or a prorated amount for a period of ten years or until the teacher's total state annual award amount reaches $50,000. An eligible teacher who received NBC certification after May 1, 2000 will receive an annual award of up to $2,500 or a prorated amount for a maximum of ten years. An otherwise eligible teacher who possesses a teaching contract that is less than full-time shall receive an award prorated to reflect the type of contract (i.e. half-time, quarter-time, etc.).
It is unclear as to whether Iowa has a state master educator certification process.
Illinois – Requires persons holding a certificate issued by the NBPTS to apply for a master certificate. Holders of an Illinois master certificate who are employed for no less than the equivalent of half of the school year as a teacher or school counselor in a public school setting are eligible for a $3,000 stipend. If funding is limited, this amount may be prorated and grant awards may be prioritized. Holders of an Illinois master certificate shall be eligible for an annual incentive payment for each year during which:
  He or she holds a certificate issued by the NBPTS.
  He or she is employed by a school district or other public entity providing early childhood, elementary, or secondary education.
  He or she works no less than the equivalent of half the school year.
Additional incentives are provided for applicants that meet further requirements such as providing at least 60 hours of mentoring to classroom teachers.
Illinois does not have a state master educator certification process.
Summary of factual data and analytical methodologies
The intent of awarding grants under this program is to encourage teachers to obtain this rigorous certification and apply the knowledge gained to help pupils directly through classroom instruction and pupil services. It has never been the intent to award funds simply because an individual holds a master educator license or national board certificate.
In its 2007-09 biennial budget request, the department requested that the national teacher certification grant program be expanded to allow teachers receiving master educator licenses through the state process to receive the same grants as those teachers receiving licenses through national certification. To address the needs of high poverty schools that have difficulty attracting highly qualified teachers, the department also proposed to double the amount awarded ($5,000, rather than $2,500) to persons applying for continuing grants under s. 115.42 (2), Stats., if those persons are employed in a school in which at least 60 percent of the school's pupil population is eligible for free or reduced-price lunch under 42 USC 1758 (b).
To encourage individuals to become state certified master educators, the department created a pilot program for FY06 and FY07 to pay up to $2,000 to each applicant who successfully completed the process. Applicants that completed the Wisconsin assessment process received a Wisconsin Master Educator License and received an “initial" grant from the department using federal Title II-A, Elementary and Secondary Education Act funds. Because those funds were limited and not available for long-term obligation, these individuals did not receive “continuing" grants of $2,500. These individuals should be rewarded for participating in the pilot program and receive the $2,500 (or $5,000) grant for nine years just as future Wisconsin master educators will receive these funds. Therefore, an initial applicability section was included in the law (and the rule) to clarify the grant program applies to those master educators who were licensed by the department on or after July 1, 2005.
2007 Wisconsin Act 20 included these provisions in the law and the rule is now being modified to reflect those changes.
The rules are also being modified to clarify that:
  A teacher must be working as an instructor for a minimum of 40 percent full-time equivalency for at least 180 days in a school year to qualify for a grant. This provision will require teachers to be employed as teachers to be eligible to receive a grant.
  The term “teacher" includes school psychologists, school counselors and school social workers who are not administrators. The Wisconsin master educator assessment process offers licensure in areas not currently offered under the NBPTS, including school administration categories and school psychologists, school counselors, and school social workers. The legislature wanted the program to be expanded to “teachers" but not to “school administration categories." Because individuals with non-administrative school psychologist, counselor, and social worker licenses directly serve pupils, the department asserts they should be included in the category of teachers for purposes of these grants.
  A teacher may renew his or her 10-year national board certification or Wisconsin master educator license and continue receiving a grant under this program. The certification of first round national board certified teachers will expire next year. This provision will clarify that they may re-apply for grants if they renew their national certification. Subsequent national board certified teachers or Wisconsin master educator licensed teachers would be eligible to receive a grant upon renewal of their certification or license.
Initial Regulatory Flexibility Analysis
The proposed rules will have no significant economic impact on small businesses, as defined in s. 227.114 (1) (a), Stats.
Fiscal Estimate
Summary
Under s. 20.255 (3) (c), Stats., 2007 Wisconsin Act 20 appropriated additional funds to award grants to persons completing the Wisconsin master educator assessment process and receiving a master educator license in addition to persons holding a National Board for Professional Teaching Standards certificate. An initial grant of up to $2,000 is awarded for the first year and $2,500 is awarded annually for nine years thereafter if certain statutory conditions are met. The Act increased the $2,500 grant amount to $5,000 for teachers who are employed in a school in which at least 60 percent of the pupils enrolled are eligible for free or reduced-price lunch.
The rule establishes criteria and procedures for awarding grants under this program. The rules will have no fiscal effect on local governments or small businesses as defined in s. 227.114 (1) (a), Stats.
The costs associated with administering this grant program will be absorbed by the department.
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss. 348.25 (3) and (4) (intro.) and 348.27 (15) (d), Stats., interpreting s. 348.27 (15), Stats., as created by 2007 Wis. Act 171, the Department of Transportation will hold a public hearing on permanent and emergency rules creating Chapter Trans 263, Wis. Adm. Code, relating to multiple trip overweight permits for vehicles transporting granular roofing materials.
Hearing Information
Date
Location
July 30, 2008
at 10:00 AM
Hill Farms State Transportation Bldg.
Room 144-B

4802 Sheboygan Avenue
Madison, WI,
Parking for persons with disabilities and an accessible entrance are available.
Copies of Rules
A copy of the proposed permanent rule or emergency rule may be obtained upon request from Carson Frazier, Wisconsin Department of Transportation, Division of Motor Vehicles, 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: carson.frazier@dot.state.wi.us.
Agency Contact Person and Submission of Written Comments
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: carson.frazier@dot.state. wi.us.
To view the proposed amendments to the proposed rule, view the current rule, or 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
Section 348.27 (15), Stats., as created by 2007 Wis. Act 171.
Statutory authority
Explanation of agency authority
The Department is authorized to administer statutes and administrative rules related to vehicle weights, widths, heights, and lengths. Nonstatutory provisions created in 2007 Wis. Act 171, section 6, require the Department to promulgate rules implementing a newly-created multiple trip permit for transporting granular roofing materials by not later than August 1, 2008.
Related statute or rule
Chapter 348, Stats., and Chapters Trans 250 to 278, Wis. Admin. Code.
Plain language analysis
This proposed rule is required by 2007 Wis. Act 171, section 6. The new law creates a multiple trip permit for certain overweight vehicles or vehicle combinations transporting granular roofing materials. The law establishes certain conditions for the permit and certain limitations on operation.
This proposed rule implements those conditions and limitations:
  The permit allows excess gross weight of 10,000 pounds, but not to exceed 90,000 pounds.
  The permit requires that the motor carrier on whose behalf the load is transported be named in the permit.
  The permit requires a named origin, destination, and designated route of travel.
  The permit requires that any municipality or county whose highways make up any part of the designated route pass a resolution allowing that transport, and requires the permit applicant to submit copies of all resolutions to the department along with the permit application.
The proposed rule defines “granular roofing material" in order to make eligibility for permit and enforcement clear and uniform.
The proposed rule states that the permit is not valid on the interstate highway system, and is valid on not more than 2.5 miles of the state trunk highway system.
Comparison with federal regulations
Federal law governs overweight transport on certain federal highways, including general prohibition of divisible overweight loads on the interstate highway system. Pursuant to 23 U.S.C. section 127 and 23 C.F.R. section 658, divisible overweight loads are not allowed on the interstate highway system. 2007 Wis. Act 171 provides that a permit under this law may be issued for up to 2.5 miles on any state trunk highway if such issuance of the permit is consistent with federal law. This proposed rule is consistent with federal law because 2007 Wis. Act 171 authorizes permits for this type of divisible load and transport is not allowed on the interstate highway system.
Comparison with rules in adjacent states
Michigan: Michigan has no rule or statute authorizing overweight loads of granular roofing materials, or similar divisible overweight loads.
Minnesota: Minnesota has no rule or statute authorizing overweight loads of granular roofing materials, or similar divisible overweight loads.
Illinois: Illinois has no rule or statute authorizing overweight loads of granular roofing materials, or similar divisible overweight loads.
Iowa: Iowa has no rule or statute authorizing overweight loads of granular roofing materials, or similar divisible overweight loads.
Summary of factual data and analytical methodologies
This proposed rule implements a newly-enacted law. The Department's implementation of the law, including policies, procedures, and requirements, is the same as the Department applies to all similar multiple trip permits.
Initial Regulatory Flexibility Analysis
This proposed rule implements 2007 Wis. Act 171. The law will allow all businesses, including small businesses, to transport granular roofing materials at weights exceeding state load limits. This would have a beneficial effect on small businesses. 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
Summary
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.
The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.
Notice of Hearing
Workforce Development
Unemployment Insurance, Chs. DWD 100-150
NOTICE IS HEREBY GIVEN that pursuant to ss. 108.225 (16) (a) 3. and (am) 2., 108.14 (2), and s. 227.11 (2) (a), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules creating Chapter DWD 136, relating to wages exempt from unemployment insurance levy and affecting small businesses.
Hearing Information
July 22, 2008
MADISON
Tuesday
G.E.F. 1 Building, H306
10:00 a.m.
201 E. Washington Avenue
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.
Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.
Agency Contact Person
Tracey Schwalbe, Research Attorney, Unemployment Insurance Bureau of Legal Affairs, (608) 266-9641, tracey.schwalbe@dwd.state.wi.us.
Submission of Written Comments
Written comments may be submitted to Tracey Schwalbe, UI Research Attorney, Dept. of Workforce Development, P.O. Box 8942, 201 E. Washington Avenue, Madison, WI 53707-8942, or tracey.schwalbe@dwd.state.wi.us. Written comments received at the above address, email, or through the http://adminrules.wisconsin.gov web site no later than July 23, 2008, will be given the same consideration as testimony presented at the hearing.
Copies of Proposed Rules
A copy of the proposed rules is 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 the department address above.
Analysis Prepared by the Department of Workforce Development
Statutory authority
Sections 108.225 (16) (a) 3. and (am) 2., 108.14 (2), and 227.11, Stats.
Statutes interpreted
Sections 108.225 (16), Stats.
Related statutes and rules
Section 812.34, Stats., and 15 USC 1673
Explanation of agency authority
Section 108.225, Stats., gives the department the power of administrative levy upon any property of the debtor to allow the department to collect forfeitures or benefit overpayments owed under the unemployment insurance program. The individual debtor is entitled to a subsistence allowance of a dollar amount or percent of wages that are exempt from levy by the department.
Levy to recover forfeitures. Pursuant to s. 108.04 (11) (c), Stats., any employing unit that aids and abets or attempts to aid and abet a claimant in committing an act of concealment may be required to forfeit an amount equal to the amount of the benefits the claimant improperly received as a result of the concealment plus an additional forfeiture for each single act of concealment the employing unit aids and abets or attempts to aid and abet. When the department collects the forfeiture by levy, s. 108.225 (16) (a), Stats., provides that an individual is entitled to an exemption from levy of the greater of the following:
1. A subsistence allowance of 75% of the debtor's disposable earnings.
2. An amount equal to 30 times the federal minimum hourly wage for each full week of the debtor's pay period.
3. In the case of earnings for a period other than a week, a subsistence allowance computed so that it is equivalent to 30 times the federal minimum hourly wage using a multiple of the federal minimum hourly wage prescribed by rule of the department.
Levy to recover benefit overpayments. When the department collects benefit overpayments by levy, s. 108.225 (16) (am), Stats., provides that an individual is entitled to an exemption from levy of 80% of the individual's disposable earnings, except that:
1. A debtor's disposable earnings are totally exempt from levy if the debtor's wages are below the federal poverty guidelines for a household of the debtor's size or the levy would cause that result.
2. Upon petition by a debtor demonstrating hardship, the department may increase the portion of the debtor's disposable earnings that are exempt from levy.
3. The department may decrease or eliminate the exemption from levy if a final determination has been issued under s. 108.09, Stats., or a judgment has been entered under s. 108.24 (1), Stats., in which the debtor has been found guilty of making a false statement or representation to obtain benefits and the benefits and any assessment under s. 108.04 (11) (cm), Stats., have not been paid or reimbursed at the time that the levy is issued, unless the fund's treasurer has written off the debt under s. 108.16 (3) (a), Stats.
The law requires the department to prescribe by rule a methodology for application of the exemption that provides that a debtor's disposable earnings are totally exempt from levy if the debtor's wages are below the federal poverty guidelines for a household of the debtor's size or the levy would cause that result.
Summary of proposed rule
The proposed rule prescribes the methodology for application of s. 108.225 (16), Stats., and 15 USC 1673, for a third party employer to determine an individual's wages exempt from levy by the department. The proposed rule expresses the calculations necessary to determine the amount of wages excluded from department levy and the maximum amount that may levied by the department to recover benefit overpayments and forfeitures.
  To calculate the maximum levy amount for collecting forfeitures or benefit overpayments involving fraud or concealment, s. DWD 136.02 provides that the maximum levy amount shall be 25% of the individual's disposable earnings for the pay period unless by levying that amount, the total aggregate of all levies against the individual will exceed 25% of the individual's disposable earnings plus prior levies for the pay period, or exceed the amount by which the individual's disposable earnings exceed 30 times the federal minimum hourly wage for a week or for equivalent pay periods (the federal garnishment protections). If the department cannot take the full 25% levy amount, the proposed rule provides that the department may levy the lesser of the difference between:
  25% of the individual's disposable earnings plus prior levies for the pay period, and the amount of prior levies in effect for the pay period, or
  the individual's weekly disposable earnings and 30 times the federal minimum hourly wage (or an equivalent pay period).
  To calculate the maximum levy amount for collecting benefit overpayments, s. DWD 136.03 (1) (a) directs that the department may not levy any amount if the individual's wages are below the federal poverty guidelines. The maximum levy amount shall be 20% of the individual's disposable earnings for the pay period unless by levying that amount, the full levy amount will put the individual's disposable earnings below the poverty guidelines for the individual's household size, or if the total aggregate of all levies against the individual will exceed 25% of the total of the individual's disposable earnings plus prior levies for the pay period, or exceed the amount by which the individual's disposable earnings exceed 30 times the federal minimum hourly wage for a week or for equivalent pay periods (the federal garnishment protections). If the department cannot take the full 20% levy amount, the proposed rule provides that the department may levy the lesser of the difference between:
  the individual's gross earnings and the federal poverty guidelines, or
  25% of the individual's disposable earnings plus prior levies for the pay period and the amount of prior levies in effect for the pay period, or
  the individual's weekly disposable earnings and 30 times the federal minimum hourly wage (or an equivalent pay period).
The proposed rule defines relevant terms and directs the department to use the guidelines adopted by the judicial conference annually under s. 812.34 (3), Stats., or a comparable table. Finally, the proposed rule establishes amounts to be used in the exemption calculations that are equivalent to 30 times the federal minimum hourly wage for a week (for two-week, semi-monthly and monthly pay periods).
Comparison with federal regulations
In addition to the state exemptions from levy, the federal law, 15 USC 1673, prescribes that the maximum part of the aggregate disposable earnings of an individual for any workweek that is subject to garnishment may not exceed the smaller of the following:
1. 25% of the individual's disposable earnings for that week.
2. The amount by which the individual's earnings for that week exceed 30 times the federal minimum hourly wage in effect at the time the earnings are payable.
Comparison with rules in adjacent states
Iowa's Administrative Code provides that a garnishment of an individual's wages may not exceed the restrictions imposed by the state garnishment law or by the federal Consumer Protection Act, 15 USC 1671 et seq. 875 IAC 217.39. Iowa law provides maximum amounts of an employee's earnings that may be garnished during one calendar year depending on the earnings of the employee.
Michigan law provides that unemployment levies are subject to the same wage protections as the state's garnishment law.
Minnesota law provides for garnishment for delinquent taxes and unemployment benefit overpayments. The maximum garnishment allowed for any one pay period must be decreased by any amounts payable under any other garnishment action.
Illinois provides that unemployment insurance liens may be made against employers, subject to personal property exemptions which have been interpreted to include wages up to $4,000.
Summary of factual data and analytical methodologies
The rule implements the requirements of s. 108.225 (16), Stats., and 15 USC 1673. The Department reviewed forms prepared by the Judicial Conference for implementation of s. 812.34, Stats., regarding exemptions from earnings garnishment based on a judgment debt.
Analysis used to determine effect on small businesses
The substantive provisions are in the statute. The rule merely prescribes the methodology for application of the statutes. Management representatives of the Unemployment Insurance Advisory Council disseminated the worksheet and forms that will be used to implement the rule to businesses for comments. Two comments were received and will be incorporated into the forms.
Initial Regulatory Flexibility Analysis
The rule affects small businesses as defined in s. 227.114 (1), Stats., but does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
Summary
No significant impact was expected from the law change adopting s. 108.226 (16) (am), Stats. The rule implements the statute and no other fiscal impact is expected.
State fiscal effect
None
Types of local governmental units affected
Towns, villages, cities, counties, school districts and WTCS districts.
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.