Section 218.04 (1) (a), Stats.

Sections 218.04 (7) (d) and 227.11 (2), Stats.

Section 256.01 (3), Stats., provides the definition of “ambulance service provider" as used in this rule.

Pursuant to s. 218.04, Stats., the department regulates collections agencies.

The objective of the rule is to renumber ss. DFI—Bkg 74.01(3) and DFI—Bkg 74.01(4); and create ss. DFI—Bkg 74.01(3), DFI—Bkg 74.01(5), DFI—Bkg 74.01(6) and DFI—Bkg 74.18, relating to the exemption of health care billing companies from the definition of a collection agency. The purpose of the rule is to provide definitions and requirements regarding this exemption. Pursuant to 2009 Wisconsin Act 404, the legislature has determined that the definition of a collection agency as set forth in s. 218.04(1)(a) does not include health care billing companies. The rule provides definitions related to this exemption. The rule also sets forth the criteria to qualify for an exemption as a health care billing company and certain requirements for the health care billing company to meet regarding the exemption.

29 CFR s. 825.125 provides the definition of “health care provider" as used in this rule.

Illinois, Michigan, Minnesota and Iowa do have comparable rules.

Because the department regulates collection agencies for the state, the division could also rely on extensive staff expertise and experience in drafting regulations for these entities. The department is also experienced with health care billing companies as collection agencies because, until the enactment of 2009 Wisconsin Act 404, the department licensed these companies as collection agencies.

The rule removes health care billing companies from state regulation. The rule also provides clarity in setting forth the criteria to qualify for an exemption as a health care billing company and the requirements for the health care billing company to meet regarding the exemption.

The rule does not have a significant economic impact on small business.

The rule places no additional duties or burdens on state government, and hence has no affect on costs to it.

For substantive questions on the rule, contact:

NOTICE IS HEREBY GIVEN That pursuant to ss. 138.10 (2m), 138.14 (8) (b), 138.14 (14) (g), and 227.11 (2), Stats., the Department of Financial Institutions, Division of Banking will hold a public hearing to consider a rule to create Chapter DFI-Bkg 75, relating to payday lending.

To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, or for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Department of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, telephone (608) 267-1705, e-mail mark.schlei@wisconsin.gov.

A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website, www.wdfi.org.

Written comments must be received by the conclusion of the department's hearing regarding the proposed rule.

Sections 138.10 (2m), 138.14 (8) (b) and (14) (g), Stats.

Sections 138.10 (2m), 138.14 (8) (b), (14) (g), and 227.11 (2), Stats.

None.

Pursuant to 2009 Wisconsin Act 405, the department is to enact rules regarding payday lending reforms.

The objective of the rule is to create ch. DFI—Bkg 75. The purpose of the rule is to establish clear standards and requirements for payday lenders; notice and other protections to payday lending customers; and database requirements for the secure entry, retention and transmission of customer information. The rule provides definitions; identifies transactions not deemed payday loans; lists prohibited practices; sets forth loan disclosure requirements; sets forth fees and interest, and addresses defaults; sets forth the calculations to be used to determine income; provides details on repayments and repayments loans; and provides for a database and the secure transmission of information regarding payday loans.

None.

Illinois, Michigan, Minnesota and Iowa all now regulate payday lending.

In developing these rules, the department extensively reviewed payday lending laws in states across the country. The department also received input from payday lenders and consumer organizations. Because the department regulates licensed financial services for the state, the division could also rely on extensive staff expertise and experience in drafting regulations for these entities. The department is also experienced with payday loans and payday lending practices because the department licenses these lenders.

The mandates addressed by the rule are the result of and set forth in 2009 Wisconsin Act 405, and not by the rule. The rule does provide substantial clarity to the payday lending industry on the types of loans covered, and notice as to what practices are prohibited. The rule provides the industry with clear and itemized requirements for disclosures and repayment plans, and standard calculations for income determination. The rule provides for the safe and secure transmission of data, and the required information to be entered into the database. Permissible fees and interest are addressed, as well as default matters. Overall the information required by the rule should be readily available to payday lenders in the normal course of business. Standardizing requirements for disclosures, repayments and calculations provides both ease of transaction for the lenders and certainty for their practices. The fees, interest and default provisions likewise provide the same, and are de minimis in comparison with the overall operational costs and income of these entities. Overall the requirements of the rule are straight-forward for ease in compliance.

The rule itself does not have a significant economic impact on small business and should have a beneficial affect for both the business and consumer.

The fiscal effect may increase costs which may be possible to absorb within the agency's budget, and may increase existing revenues.

For substantive questions on the rule, contact:

NOTICE IS HEREBY GIVEN that pursuant to ss. 5.05 (1) (f), 227.11 (2) (a), 227.16, and 227.24 (4), Stats., the Government Accountability Board will hold a public hearing to consider adoption of an emergency and permanent rule to create section GAB 1.91, Wis. Adm. Code, relating to organizations making independent disbursements.

This public hearing site is accessible to people with disabilities. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please contact the person listed below.

Comments are to be submitted to Government Accountability Board, Attn: Shane W. Falk, 212 E. Washington Avenue, 3rd Floor, P.O. Box 7984, Madison, Wisconsin 53707-7984, no later than August 30, 2010.

Sections 11.01(4) and (18m), 11.05, 11.055, 11.06, 11.09, 11.10, 11.12, 11.14, 11.16, 11.19, 11.20, 11.21(16), 11.30, 11.38, 11.513, Stats.

Sections 5.05 (1) (f) and 227.11 (2) (a), Stats.

Express rule-making authority to interpret the provisions of statutes the Board enforces or administers is conferred on it pursuant to s. 227.11(2)(a), Stats. In addition, s. 5.05(1)(f), Stats., provides that the Board may promulgate rules under ch. 227, Stats., for the purpose of interpreting or implementing the laws regulating the conduct of elections or election campaigns or ensuring their proper administration.

In Citizens United v. FEC, 558 U.S. ___, (No. 08-205)(January 21, 2010), the United States Supreme Court greatly expanded the rights of organizations to engage in independent expenditures and strengthened the ability of the government to require disclosure and disclaimer of the independent expenditures. Pursuant to s. 5.05(1), the Board has the responsibility for the administration of campaign finance statutes in ch. 11, Stats. Rules promulgated by the Board will ensure the proper administration of the campaign finance statutes and properly address the application of Citizens United v. FEC.

Chapter 11, Stats., and Chapter GAB 1, Wis. Adm. Code.