Sections 49.155 (6g), Stats., as created by 2009 Wisconsin Act 28, and 227.11 (2) (a), Stats.

Section 49.155 (1m) (a), Stats., provides the work, training, and educational activities for which an eligible individual can receive a subsidy for child care. A child care administrative agency determines the hours of child care authorized per week and authorizes payment to a child care provider.

Section 49.155 (6g) (a), Stats., as created by 2009 Wisconsin Act 28, provides that no more than 12 hours of child care per day per child may be authorized unless the parent provides written documentation of work or transportation requirements that exceed 12 hours in a day. The child care administrative agency may authorize more than 12 hours, not exceeding 16 hours, of child care per day for a child whose parent provides written documentation of work or transportation requirements that exceed 12 hours in a day. If the authorized hours of child care per day for a child will be reduced from more than 12 to 12 or less because the child's parent does not provide the written documentation, the child care administrative agency shall provide to the child's parent and to the child care provider 4 weeks' notice of the reduction in authorized hours before actually reducing the child's authorized hours.

Section 49.155 (6g) (am) and (b), Stats., as created by 2009 Wisconsin Act 28, provides that if payment to a child care provider is based on authorized hours of child care, the department shall do all of the following with respect to establishing and adjusting the number of authorized hours per child:

The department shall exclude from a child's hourly usage calculation all of the following:

The department shall promulgate rules that specify how these requirements will be implemented.

The proposed rules will incorporate the provisions of s. 49.155 (6g), Stats., regarding authorized hours of subsidized child care.

The statute requires a grace period during which the subsidy paid to the provider remains the same after the authorized hours are reduced. The proposed rules will provide that the grace period will be 2 weeks.

The rules also provide that weeks for which the child care administrative agency approved payment to a provider to hold a slot during a parent's temporary break in employment shall be excluded from a child's hourly usage calculation. Section DCF 201.04 (2) (h) currently provides that the child care administrative agency may authorize payment to a provider to hold a slot for a child if the parent has a temporary break in employment and intends to return to work and continue to use the child care provider upon return to work. The agency may authorize payment for no more than 6 weeks if the absence is due to a medical reason and is documented by a physician or for no more than 4 weeks if the absence is for other reasons.

In addition, the proposed rules update agency terminology and definitions to reflect changes in 2009 Wisconsin Act 28 that authorize the department to contract with counties, tribes, W-2 agencies, child care resource and referral agencies, or other agencies to administer the child care subsidy program and to certify child care providers. Act 28 also provides for department administration of child care in Milwaukee County.

The Governor's veto message requested the department to implement a 2-week grace period.

None.

A provider may only receive payment for a child's hours of attendance, except for absences due to the child's illness, not to exceed 2 consecutive weeks, and state holidays.

Payment to licensed and license-exempt child care centers are based on authorized days if the total of days attended for all publicly-funded children at the center location are 80% of the authorized days for the month.

Payment to licensed home providers are based on authorized days if the total of days attended for all children in a family are 80% of the family's authorized days for the month.

Payment to license-exempt home providers are based only on attendance.

Payment is based on authorized days with payment allowed for a child not in attendance not to exceed 4 days per calendar month.

Payment is based on authorized days except child care providers may not be reimbursed for more than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more than 10 consecutive full-day absent days, unless the child has a documented medical condition that causes more frequent absences.

The proposed rule will affect child care providers, but the rule has minimal effect beyond the requirements of the statute.

The proposed rule will affect small businesses as defined in s. 227.114 (1), Stats., but will not have a significant economic impact on a substantial number of businesses.

The Department's Small Business Regulatory Coordinator is Elaine Pridgen: Phone: (608) 267-9403 or Email: elaine.pridgen@wisconsin.gov.

2009 Wisconsin Act 28 assumes that implementation of s. 49.155 (6g), Stats., will save an estimated $9 million over the 2009-2011 biennium.

Decrease costs.

None.

None.

NOTICE IS HEREBY GIVEN that pursuant to section 560.45 (3) of the Statutes, the Department of Commerce will hold a public hearing on emergency rules and proposed permanent rules in Chapter Comm 121, relating to small business innovation research assistance grants, and affecting small businesses.

The public hearing will be held as follows:

Date and Time:	Location:
June 11, 2010 Friday at 10:00 a.m.	Thompson Commerce Center Third Floor, Room 3B 201 West Washington Avenue Madison, Wisconsin

This hearing will be held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call Sam Rockweiler at (608) 266-0797 or at Contact Through Relay at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.

Interested persons are invited to appear at the hearing and present comments on the emergency rules and proposed permanent rules. Persons making oral presentations are requested to submit their comments in writing, via e-mail. Persons submitting comments will not receive individual responses. The hearing record on this rulemaking will remain open until June 16, 2010, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. E-mail comments should be sent to sam.rockweiler@wi.gov. If e-mail submittal is not possible, written comments may be submitted to Sam Rockweiler, Department of Commerce, Division of Environmental and Regulatory Services, P.O. Box 14427, Madison, WI 53708-0427.

The emergency rules and proposed permanent rules and an analysis of the rules are available on the Internet by entering “Comm 121" in the search engine at the following Web site: https://health.wisconsin.gov/admrules/public/Homesam.rockweiler@wi.gov. Paper copies may be obtained without cost from Sam Rockweiler at the Department of Commerce, Division of Environmental and Regulatory Services, P.O. Box 14427, Madison, WI 53707, or at sam.rockweiler@ wi.gov, or at telephone (608) 266-0797, or at Contact Through Relay. Copies will also be available at the public hearing.

Section 560.45, Stats.

Sections 227.11 (2) (a) and 560.45 (3), Stats.

Section 227.11 (2) (a) of the Statutes authorizes the Department to promulgate rules interpreting the provisions of any Statute administered by the Department. Section 560.45 (3) of the Statutes requires the Department to promulgate rules for administering the small business innovation and research assistance grants established under subchapter III of chapter 560 of the Statutes.

The Department has various rules for administering several economic development programs, including criteria in chapter Comm 129 for grants or loans to fund professional services related to completing an application to be submitted to the federal government for obtaining early stage research and development funding.

These rules set forth the criteria the Department or its designee will use to administer the small business innovation and research assistance grants established under subchapter III of chapter 560 of the Statutes, as enacted in 2009 Wisconsin Act 28. These grants will assist businesses in the phase of development that precedes the eligibility of the businesses in the federal Small Business Innovation Research (SBIR) program, or businesses which are participating in the Phase III, commercialization portion of that program.

The U.S. Small Business Administration (SBA) Office of Technology administers the federal SBIR program. Federal agencies with extramural research and development budgets over $100 million are required to administer SBIR programs using an annual set-aside of 2.5% for small companies to conduct innovative research or research and development that has potential for commercialization and public benefit. Through this competitive program, SBA ensures that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts. Eleven federal departments participate in the SBIR program. As of May 2007, over $12 billion had been awarded to various small businesses, and the current annual allocation, in combination with the parallel Small Business Technology Transfer program, is over $2 billion. The Department is not aware of any federal grants that provide funding for assistance with submitting applications or otherwise participating in the SBIR program.

None of the adjacent States were found to have rules that are likewise primarily directed at providing grants to assist businesses with (1) establishing eligibility for or preparing applications for federal SBIR funding or (2) commercializing products developed through SBIR funding. However, the following programs in Illinois and Michigan appear to address some of the activities that are expected to occur under these proposed rules, for achieving these objective.

The Illinois Innovation Challenge program seeks to increase the number of Illinois companies that apply for federal research grants. The program provides grant-writing assistance to eligible Illinois technology-based entrepreneurs, innovators and new venture startups to access federal SBIR funding opportunities.

The Illinois Department of Commerce and Economic Opportunity and the University of Illinois have partnered to provide qualified Illinois small businesses and entrepreneurs with consultant services for SBIR proposals. The services are designed to match the needs of the small business or entrepreneur, and assist in identifying, preparing, advancing and reviewing Phase I SBIR proposals.

The Michigan Small Business and Technology Development Center (MI-SBTDC) has partnered with the Michigan Economic Development Corporation (MEDC) to establish the Michigan Emerging Technologies Fund (ETF). The MI-SBTDC administers the ETF through a contractual agreement with the MEDC authorized by the Michigan Strategic Fund Board. Funding for the program is provided through the Michigan 21st Century Jobs Fund. Since 2008, $4.2 million has been allocated to the ETF. ETF funds are awarded on a first-come, first-serve basis.

The ETF was created to provide matching grants to support commercialization of SBIR projects. The ETF matches 25% of phase I SBIR awards up to $25,000, and 25% of phase II SBIR awards up to $125,000. The ETF Funds must be used to help bring Michigan SBIR projects to commercialization in at least one of the four technology sectors: (1) life sciences; (2) alternative energy; (3) advanced automotive, manufacturing and materials and (4) homeland security and defense. Companies must leverage third-party funding to be eligible for ETF Funds. Before submitting an SBIR proposal to the federal government, a company must first secure a commitment from the MI-SBTDC.