Written Comments
Written comments in lieu of public hearing testimony may be submitted which must be received no later than the hearing date and should be addressed to the Administrator for the Division of Securities, 345 West Washington Avenue, P.O. Box 1768, Madison, Wisconsin 53701.
Analysis Prepared by the Dept. of Financial Institutions, Div. of Securities
Statutory authority: ss. 551.32 (4) and 551.63 (2)
Statute interpreted: s. 551.32 (4)
These proposed permanent rules are being promulgated to be in place upon the expiration of identical emergency rules currently in effect that were issued by Order of the Administrator of the Division of Securities on December 23, 1999, and became effective on January 1, 2000 following publication in the official state newspaper and the required filings with the Secretary of State and the Revisor of Statutes Bureau. The proposed permanent rules, as do the current emergency rules, are necessary to establish certain “grandfathering"/examination-waiver provisions applicable to a newly-enacted investment adviser representative competency examination requirement, so as to be uniform with equivalent grandfathering provisions adopted in most states.
The Division recently adopted for January 1, 2000 effectiveness as part of its annual rule revision process for 1999, a new administrative rule in s. DFI-Sec 5.01 (3) that prescribes a new examination requirement for investment advisers and investment adviser representatives seeking licensure in Wisconsin on or after January 1, 2000. That new examination requirement, which includes completely revised Series 65 and Series 66 examinations, was developed over a 3-year period by a Project Group of the North American Securities Administrators Association (“NASAA").
The new NASAA examination requirement (which also included certain “grandfathering"/examination-waiver provisions) was approved by vote of NASAA member states (including Wisconsin) at the NASAA 1999 Spring Conference to become effective on December 31, 1999. The NASAA membership vote was accompanied by a recommendation that for uniformity purposes, each NASAA member state complete the necessary steps to adopt and have effective by January 1, 2000, the new examination requirement conforming to the NASAA format in all respects.
Following the adoption on November 18, 1999 by the Division of the new investment adviser examination requirement in s. DFI-Sec 5.01 (3) as part of the Division's annual rule revision process, it was noted that the “grandfathering"/examination waiver provisions that had been included in s. DFI-Sec 5.01 (4) did not track the NASAA model language in two respects.
Because it is critical that the grandfathering provisions for the new Wisconsin investment adviser examination requirement be uniform with those of other NASAA member states so that applicants for licensing in Wisconsin receive equivalent treatment to that accorded them by other states in which they may be seeking licensure, both the emergency rulemaking and the permanent rulemaking are necessary.
The rulemaking action is comprised of two provisions which do the following:
1) Provide an examination waiver in new s. DFI-Sec 5.01 (4) (e) for any applicant licensed as an investment adviser or investment adviser representative in any jurisdiction in the U.S. on January 1, 2000; and
2) Provide an examination waiver in amended s. DFI-Sec 5.01 (4) (b) for any applicant that has been licensed as an investment adviser or investment adviser representative in any jurisdiction in the U.S. within two years prior to the date the application is filed.
Text of Rule
SECTION 1. DFI-Sec 5.01 (4) (b) is amended to read:
DFI-Sec 5.01 (4) (b) The applicant was has been licensed as an investment adviser or licensed as an investment adviser representative under ch. 551, Stats.,
in any jurisdiction in the United States within 2 years prior to the date the application is filed.
SECTION 2. DFI-SEC 5.01 (4) (e) is created to read:
DFI-Sec 5.01(4) (e) The applicant was licensed as an investment adviser or licensed as an investment adviser representative in any jurisdiction in the United States on January 1, 2000, except that the administrator may require additional examinations for any individual found to have violated any state or federal securities law.
Fiscal Estimate
The proposed rules have no state fiscal effect or local government costs. A copy of the full fiscal estimate may be obtained upon request to the Department of Financial Institutions, Division of Securities, 345 West Washington Avenue, 4th Floor, P.O. Box 1768, Madison, WI 53703.
Initial Regulatory Flexibility Analysis
There is no particular small business impact to the proposed permanent rules because the grandfathering/examination waiver provisions benefit equivalently all investment adviser license applicants, whether or not they fall within the definition of a small business.
Contact Information
For additional information, or if there are questions concerning the rule proposal, contact Randall E. Schumann, Legal Counsel for the Division, Division of Securities, Department of Financial Institutions, 345 West Washington Avenue, 4th Floor, P.O. Box 1768, Madison, WI 53703. Telephone direct-dial (608) 266-3414.
Notice of Hearings
Health & Family Services
(Community Services, Chs. HFS 30-)
Notice is hereby given that, pursuant to ss. 48.975 (5) and 227.11 (2) (a), Stats., the Department of Health and Family Services will hold public hearings to consider the revision of ch. HFS 50, Wis. Adm. Code, relating to the adoption assistance program for families that adopt children with special needs, and the emergency rules now in effect on the same subject.
Hearing Information
February 24, 2000 Room E-101
Thursday North Central Technical College
From 10 a.m. to 1 p.m. 1000 West Campus Drive
WAUSAU, WI
February 28, 2000 Room B155
Monday State Office Building
From 12 p.m. to 3 p.m. 1 West Wilson Street
MADISON, WI
Both hearing sites are fully accessible to people with disabilities. For the public hearing in Madison, parking for people with disabilities is available in the parking lot behind the building, in the Monona Terrace Convention Center Parking Ramp or in the Doty Street Parking Ramp. People with disabilities may enter the building directly from the parking lot at the west end of the building or from Wilson Street through the side entrance at the east end of the building,
Analysis Prepared by the Department of Health and Family Services
This rulemaking order amends ch. HFS 50, the Department's rules for facilitating the adoption of children with special needs, to implement changes to the adoption assistance program statute, s. 48.975, Stats., made by 1997 Wisconsin Act 308. Those changes include permitting a written agreement for adoption assistance to be made following an adoption, but only in “extenuating circumstances;" permitting the amendment of an adoption assistance agreement for up to one year to increase the amount of adoption assistance for maintenance when there is a “substantial change in circumstances;" and requiring the Department to annually review the circumstances of the child when the original agreement has been amended because of a substantial change in circumstances, with the object of amending the agreement again to either continue the increase or to decrease the amount of adoption assistance if the substantial change in circumstances no longer exists. The monthly adoption assistance payment cannot be less than the amount in the original agreement, unless agreed to by all parties.
Section 48.975 (5), Stats., as amended by Act 308, directs the Department to promulgate rules that, among other things, define extenuating circumstances, a child with special needs and substantial change in circumstances.
Once the rule changes were developed, they were published by emergency order on November 16, 1999 to take effect on that date so that adoption assistance or the higher adoption assistance payments to which adoptive parents are entitled because of “extenuating circumstances" or a “substantial change in circumstances" under the statutory changes that were effective on January 1, 1999, could be made available to them as soon as possible rather than 7 to 9 months later which is how long the promulgation process takes for permanent rules. This is the proposed permanent order to amend ch. HFS 50 that will replace the time-limited emergency order that amended ch. HFS 50.
Contact Person
To find out more about the hearings or to request a copy of the proposed rules or the emergency rules, write, phone or E-mail:
Jill Duerst
Division of Children and Family Services
P.O. Box 8916
Madison, WI 53708-8916
(608) 266-1142 or,
if you are hearing impaired,
(608) 266-7376 (TTY)
If you are hearing or visually impaired, do not speak English, or have circumstances which might make communication at a hearing difficult and if you, therefore, require an interpreter or a non-English, large-print or taped version of the hearing document, contact the person at the address or phone number shown above. Persons requesting a non-English or sign language interpreter should contact the person at the address or phone number given above at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Written comments on the proposed rules or the emergency rules received at the above address no later than March 2, 2000 will be given the same consideration as testimony presented at the hearings.
Fiscal Estimate
This order amends ch. HFS 50 to implement changes made in s. 48.975, Stats., the adoption assistance program, by 1997 Wisconsin Act 308. Those changes include permitting a written agreement for adoption assistance to be concluded after the adoption is final, but only when there are “extenuating circumstances," and permitting the amendment of an adoption assistance agreement to increase the amount when, following adoption of a special needs child there is a “substantial change in circumstances." The amended rules define “extenuating circumstances," “
child at high risk" and “substantial change in circumstances."
The rule changes will not affect the expenditures or revenues of state government or local governments. They implement the statutory changes. The adoption assistance program is administered by the Department.
Any change in costs as a result of these changes in the adoption assistance program are due not to the implementing rule changes but rather to Act 308 and were taken into consideration by the Legislature in deliberations when the bill, AB 601, was passed.
Initial Regulatory Flexibility Analysis
These rule changes apply mainly to the Department and the adoptive parents of special needs children but may affect also prospective adoptive parents, adopted special needs children, special needs children available for adoption and adoption agencies. A few of the adoption agencies, namely, some of the 24 private child-placing agencies licensed to accept guardianship of children and to place children under their guardianship for adoption, may be small businesses as “small business" is defined in s. 227.114 (1) (a), Stats. However, in this rulemaking order adoption agencies are directly affected only by a revised requirement relating to reasonable placement efforts which does not require the agency to have new professional skills in order to comply with it.
Notice of Hearing
Commissioner of Insurance
Notice is hereby given that pursuant to the authority granted under s. 601.41 (3), Stats., and the procedure set forth in s. 227.18, Stats., the Office of the Commissioner of Insurance (OCI) will hold a public hearing to consider the adoption of the proposed rule-making order affecting s. Ins 3.09, Wis. Adm. Code, relating to mortgage guarantee insurance.
Hearing Information
Date & Time Location
February 25, 2000 Room 6
Friday OCI
10:00 A.M. 121 East Wilson St.
MADISON, WI
Analysis Prepared by the Office of the Commissioner of Insurance
Statutory authority: ss. 601.41 (3), 627.05 and 628.34 (12) and ch. 617
Statutes interpreted: ss. 600.01 and 628.34 (12) and ch. 617
This proposed rule change establishes standards for the transaction of mortgage guarantee business related to an affiliate when that affiliate is 50% owned by another party. Existing rules prohibit such transactions.
Written Comments
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 at OCI within 14 days following the date of the hearing. Written comments should be addressed to:
Stephen Mueller, OCI
