The independent review organizations are certified by the commissioner's designee to conduct independent reviews in the state and several are small businesses. The additional cost for complying with this rule is no different for an independent review organization cost for complying with the federal law. Further, if there is additional cost it will be primarily borne by large insurers who are required to pay for the cost of an independent review, not the independent review organizations. The proposed rule places few additional requirements on the independent review organizations and in clarifying what is and is not eligible for reviews, the costs incurred will be limited.

This rule change will have no significant effect on the private sector regulated by OCI.

This rule will have little or no effect on small businesses.

Notice is hereby further given that pursuant to s. 227.114, Stats., the proposed rule may have an effect on small businesses. The initial regulatory flexibility analysis is as follows:

Notice is hereby further given that pursuant to s. 227.14 (2g), Stats., the proposed rule may have an economic impact on small businesses.

The OCI small business coordinator is Louie Cornelius and may be reached at phone number (608) 264-8113 or at email address Louie.Cornelius@wisconsin.gov.

A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the Web site at: http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, OCI Services Section, at:

SECTION 1. Repeal EmR 1117.

SECTION 2. These changes first apply to claims occurring on or after January 1, 2012.

SECTION 3. This chapter may be enforced under ss. 601.41, 601.64, 601.65, 628.10, Stats., or ch. 645, Stats., or any other enforcement provision of chs. 600 to 646, Stats.

SECTION 4. These emergency rule changes will take effect on December 29, 2011, as provided in s. 227.24 (1) (c), Stats.

NOTICE IS HEREBY GIVEN THAT, pursuant to section 227.11 (2) (a), Stats., the Department of Revenue will hold a public hearing to consider permanent rules creating section Tax 11.10, relating to wind, solar, and certain gas powered products.

The hearing will be held:

Handicap access is available at the hearing location.

Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below no later than February 3, 2012, and will be given the same consideration as testimony presented at the hearing.

This rule is not subject to s. 227.135 (2), as affected by 2011 Wisconsin Act 21. The statement of scope for this rule, published in Register No. 666 on June 14, 2011, was sent to Legislative Reference Bureau prior to the effective date of 2011 Wisconsin Act 21.

Section 77.54 (56), Stats.

Section 227.11 (2) (a), Stats.

Section 227.11 (2) (a), Stats., provides that each agency may promulgate rules interpreting the provisions of any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute.

Section Tax 11.68 (4), (5), and (6) provide information on the determination of the classification of property, including products defined and exemplified in this rule, after installation.

This rule defines the term “product" as it applies to the sales and use tax exemption under s. 77.54 (56), Stats., provides examples of items that are and are not considered products, and clarifies the exemption requirements and scope.

There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Minnesota and Iowa have sales and use tax exemptions relating to equipment involved in converting wind or solar energy into electricity or heat, Michigan and Illinois do not.

M. S. 297A.67. Subd.29, Solar energy products. A solar energy system, as defined in section 216C.06, subdivision 17, is exempt.

M. S. 297A.68.Subd.12, Wind energy conversion systems. Wind energy conversion systems, as defined in section 216C.06, subdivision 12, that are used as an electric power source are exempt, and the materials used to manufacture, install, construct, repair, or replace them are exempt.

Minnesota has no rules pertaining to these statutes.

Iowa Code sec. 423.3.54, The sales price from the sale of wind energy conversion property to be used as an electric power source and the sale of the materials used to manufacture, install, or construct wind energy conversion property used or to be used as an electric power source.

For purposes of this subsection, “wind energy conversion property" means any device, including, but not limited to, a wind charger, windmill, wind turbine, tower and electrical equipment, pad mount transformers, power lines, and substation, which converts wind energy to a form of usable energy.

Iowa Code sec. 423.3.90, The sales price from the sale of solar energy equipment. For purposes of this subsection, "solar energy equipment" means equipment that is primarily used to collect and convert incident solar radiation into thermal, mechanical, or electrical energy or equipment that is primarily used to transform such converted solar energy to a storage point or to a point of use.

Iowa has a rule (701—230.7(423)) relating to the statutory exemption for “wind energy conversion property." However, the rule merely reiterates the statutory language and does not interpret the statute.

In reviewing the language of s. 77.54 (56), Stats., the department concluded that in order to administer the sales and use tax exemption being created, it needs to promulgate rules interpreting and clarifying the underlying statutory provisions.

As explained above, this rule is created to administer changes in Wisconsin's sales and use tax laws. As the rule itself does not impose any significant financial or other compliance burden, the department has determined that it does not have a significant effect on small business.

This rule does not have a significant fiscal effect on the private sector.

This rule does not have a significant effect on small business.

Please contact Dale Kleven at (608) 266-8253 or dale.kleven@revenue.wi.gov, if you have any questions regarding this rule.

Comments may be submitted to the contact person shown below no later than one week after the public hearing on this rule is conducted. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.