Statutes interpreted
Section 101.147, Stats., as affected by 2009 Wisconsin Act 28.
Statutory authority
Sections 101.02 (1) and 101.147, Stats., as affected by 2009 Wisconsin Act 28.
Related statute or rule
None.
Explanation of agency authority
Under chapters 101 and 145 of the Wisconsin Statutes, the Department of Commerce protects public health, safety, and welfare by promulgating comprehensive requirements for design, construction, use and maintenance of public buildings and places of employment, public swimming pools and water attractions and adopts rules that establish uniform, statewide standards for the construction of one- and 2-family dwellings.
These statutes also provide the Department with oversight of various mechanical systems and devices to protect public safety and health. The Department administers and enforces codes that address amusement rides, ski lifts and tows, boilers and pressure vessels, gas systems and mechanical refrigeration systems to accomplish its statutory objectives.
The construction trades and equipment installers share a responsibility with owners and designers to ensure that the buildings and equipment relative to the respective trade's work, do not pose risk to public safety and health.
Summary of proposed rules
Effective October 2, 2009, the various construction trades involved in building or modifying these types of structures are required to register as a building contractor. The department administers a registration program for businesses engaged in building construction as contractors or subcontractors under ch. Comm 5. The proposed rules expand the building contractor registration which is a credential for a contracting business and is not required for each partner or employee involved with physically constructing or modifying the structures.
As mandated by Wisconsin Act 28, the definition of “construction business" has been broadened to include additional trades that are regulated by departmental codes. The proposed rules require the registration of trades and businesses that construct, install or alter mechanical equipment and devices such as boilers, gas systems, piping, mechanical refrigeration systems serving a building or structure. In addition, the proposed rules expand the registration requirement to those trades or businesses involved in the construction, installation or alteration of permanent devices or structures regulated under the amusement rides code and the sanitation code.
The proposed rules create administrative procedures and a forfeiture process for those persons or entities doing construction- or installation-related work without a registration number.
In addition, the proposed rules consolidate two types of weld tester certifications into one category.
Comparison with federal regulations
An Internet-based search of the Code of Federal Regulations (CFR) and the Federal Register did not find any federal regulations relating to contractor registration.
Comparison with rules in adjacent states
An Internet-based search of contractor registration in the states of Illinois, Iowa, Michigan and Minnesota found the following:
Illinois:
Except for roofers, the state of Illinois does not have any regulations for the licensure of building contractors.
Iowa:
All individual contractors and businesses performing construction work in the state of Iowa are required to be registered. The 2-year registration fee is $25. The prerequisites for registration include the demonstration of compliance with worker's compensation insurance requirements and with unemployment tax requirements.
If a contractor does not register or falsifies registration information, then Iowa assesses a penalty of not more than $500 for a first violation and not more than $5,000 for a second or subsequent violation.
Michigan:
Persons and businesses that contract with property owners to build new homes or remodel homes are required to have licenses in the state of Michigan. The license types are 1) residential builder and 2) residential maintenance and alteration contractor, which is restricted to perform only specific trades and services. The fee is $225 for a 3-year license, and applicants must complete 60 hours of approved education and pass an examination. Michigan does not have a licensing law regulating builders of commercial buildings.
In Michigan, a person who is not licensed as a residential builder or a residential maintenance and alteration contractor can be found guilty and fined as follows:
  In the case of a first offense, a misdemeanor punishable by a fine of not less than $5,000 or more than $25,000, or imprisonment for not more than 1 year, or both.
  In the case of a second or subsequent offense, a misdemeanor punishable by a fine of not less than $5,000 or more than $25,000, or imprisonment for not more than 2 years, or both.
  In the case of an offense that causes death or serious injury, a felony punishable by a fine of not less than $5,000 or more than $25,000, or imprisonment for not more than 4 years, or both.
Minnesota:
The state of Minnesota requires certifications for a person or business that contracts with property owners to construct or improve dwellings for habitation by one- to four-families and where the person or business is involved with two or more special building skills. The Residential Contractor license and Remodeler license are annual licenses. The fees, which are based upon gross receipts, are $260 to $360. The application for the license requires a qualifying person to take the required examination and fulfill the continuing education requirements for the business.
Effective January 1, 2009, the Minnesota Independent Contractor Certification Law requires building contractors to certify that they are independent contractors versus employees using a “9 Items" test related to Worker's Compensation. The fee for a 2-year certification is $250.
Minnesota assesses a penalty of up to $5,000 for each violation if a person performs work without first obtaining a certificate or falsifies or alters a certificate. The penalty also applies to anyone who uses coercion, misrepresentation or fraudulent means to require another individual to adopt independent contractor status.
Factual data and analytical methodologies
The proposed rules were developed by reviewing the provisions under 2009 Wisconsin Act 28 in conjunction with the current rules relating to contractor registration under s. Comm 5.30. For consistency, the proposed forfeitures are modeled after other penalties currently used by the department to enforce compliance with other construction-related licenses, certifications and registrations.
Small Business Impact
The proposed rules implement the mandates imposed by 2009 Wisconsin Act 28. The effect on small businesses is minor and ensures that the construction trades comply with Wisconsin worker's compensation insurance and unemployment tax requirements. Identifying contractor businesses will help prevent unfair competition which is a common problem for contractors.
An economic impact report has not been required pursuant to s. 227.137, Stats.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The department estimates that there would be about 400 new businesses that would be required to register. The building contractor registration is $100 for 4 years. There is also a $15 initial application fee that would be waived if the applicant applies and pays for the registration via the Internet. The department estimates that it would realize about $10,750 in revenue annually.
The department anticipates that the workload associated with the registration and the enforcement of the program can be managed with current information technology and within current staff levels.
State fiscal effect
None. Increase costs — may be possible to absorb within agency's budget.
Local government costs
None.
Fund sources affected
PRO.
Long-range fiscal implications
None are anticipated.
Agency Contact Person
James Quast, Program Manager
Phone: (608) 266-9292
Notice of Hearing
Health Services
Health, Chs. DHS 110
NOTICE IS HEREBY GIVEN that pursuant to ss. 50.93 (1) (c), 50.95 (1), (2), (4), (5) and (6), and 227.11 (2) (a), Stats., the Department of Health Services will hold a public hearing on proposed permanent rules to consider revisions to Chapter DHS 131, relating to hospices, and affecting small businesses.
Hearing Information
Date and Time
Location
April 26, 2010
10:00 AM – 12:00 PM
Dept. of Health Services
Wilson St. State Office Bldg.
1 West Wilson Street
Room 950B
Madison, Wisconsin
Accessibility
English
DHS is an equal opportunity employer and service provider. If you need accommodations because of a disability or need an interpreter or translator, or if you need this material in another language or in an alternate format, you may request assistance to participate by contacting Pat Benesh at 608-264-9896. You must make your request at least 7 days before the activity.
Spanish
DHS es una agencia que ofrece igualdad en las oportunidades de empleo y servicios. Si necesita algún tipo de acomodaciones debido a incapacidad o si necesita un interprete, traductor o esta información en su propio idioma o en un formato alterno, usted puede pedir asistencia para participar en los programas comunicándose con Pat Benesh al número 608-264-9896. Debe someter su petición por lo menos 7 días de antes de la actividad.
Hmong
DHS yog ib tus tswv hauj lwm thiab yog ib qhov chaw pab cuam uas muab vaj huam sib luag rau sawv daws. Yog koj xav tau kev pab vim muaj mob xiam oob qhab los yog xav tau ib tus neeg pab txhais lus los yog txhais ntaub ntawv, los yog koj xav tau cov ntaub ntawv no ua lwm hom lus los yog lwm hom ntawv, koj yuav tau thov kev pab uas yog hu rau Pat Benesh ntawm 608-264-9896. Koj yuav tsum thov qhov kev pab yam tsawg kawg 7 hnub ua ntej qhov hauj lwm ntawd.
Submission of Written Comments
Comments may be submitted to the agency contact person listed above or to the Wisconsin Administrative Rules Website at www.adminrules.wisconsin.gov until April 27, 4:30 p.m.
Copies of the Rule
A copy of the rules may be obtained from the department at no charge by downloading the documents from www.adminrules.wisconsin.gov or by contacting:
Pat Benesh, Quality Assurance Program Spec-Senior
DHS Division of Quality Assurance
1 West Wilson St., Rm. 534
Madison, WI 53701
Phone: 608-264-9896
Fax: 608-267-0352
Analysis Prepared by the Department of Health Services
Statute interpreted
Sections 50.91, 50.92, 50.93 and 50.95, Stats.
Statutory authority
The Department's authority to promulgate rules is under ss. 50.93 (1) (c), 50.95 (1) (2) (4) (5) and (6) and 227.11 (2) (a), Stats.
Explanation of agency authority
Section 50.93 (1) (c), Stats., gives the Department the authority to promulgate rules to establish a provisional licensing fee. Section 50.95 (1), Stats., requires the Department to promulgate rules to establish standards for the care, treatment, health, safety, rights, welfare and comfort of individuals with terminal illness, their families and other individuals who receive palliative care or supportive care from a hospice. Section 50.95 (2), (4), (5), and (6), Stats., requires the Department to promulgate rules establishing provisional hospice licensure fees or the methods of computation of fees, criteria for determining financial hardship for the waiver of licensing fees, criteria for determining that the applicant is fit and qualified and a procedure for the waiver of and variance from standards under ch. DHS 131.
Section 227.11 (2) (a), Stats., allows agencies to promulgate rules interpreting the provision of any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
See the “Statutes interpreted" section.
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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.