1999 Wisconsin Act 11 amended Wis. Stat. §
40.04 (7) (a) to permit all participating employees on or after January 1, 2001 to elect to have 50% of their future required and additional contributions deposited in the Variable Trust Fund.
1999 Wisconsin Act 11 also permits former Variable Trust Fund participants who completely cancelled their original variable participation to re-enroll in the Variable Trust Fund.
Renumbering Wisconsin Administrative Code ss.
ETF 10.30,
10.32,
10.33, and
10.34 as part of s.
ETF 10.31 will consolidate all administrative rules regarding participation in the Variable Trust Fund in one administrative code. This will streamline the administrative code and provide efficient administration of the Variable Trust Fund program.
Revising s.
ETF 10.31 will further clarify the effective dates of a participant's election to participate in and to cancel participation in the Variable Trust Fund, how interest will be credited on late reported variable contributions to participants' accounts, and the effect of variable cancellations on individuals with multiple WRS accounts.
The rule is intended to consolidate and clarify the Department's administrative policy and procedures regarding participation and cancellation of participation in the Variable Trust Fund. If the rule is not revised, there may be uncertainty and confusion regarding the effective dates of participation or cancellation of participation in the Variable Trust Fund and potentially inaccurate interest crediting. This rule clarification is necessary for the orderly and efficient administration of the WRS.
Statutory authority
Staff time required
80 hours.
Employee Trust Funds
Subject
Section
ETF 20.35 clarifies how Wisconsin Retirement System (WRS) accounts and annuities are divided pursuant to qualified domestic relations orders (QDROs) under s.
40.08 (1m), Stats. The proposed rulemaking will amend s.
ETF 20.35 to further clarify the impact on a participant's account when the Department receives more than one QDRO that divides a participant's WRS account when the participant has more than one marriage that is legally terminated. Multiple QDROs are especially problematic when they are received out of chronological order with respect to the dates of divorce. This occurs more frequently since
1997 Wisconsin Act 125 was enacted. This legislation newly permitted the Department to honor QDROs for divorces that occurred between January 1, 1982 and April 27, 1990.
The proposed rulemaking will also include several non-substantive, technical amendments to s.
ETF 20.35 to add clarity to the text of the rule.
Description of Policy Issues
Objectives of the Rule. The proposed amendment would accomplish two objectives: provide clarification of the impact of multiple QDROs on a participant's WRS account, and make non-substantive technical changes to make the rule more clear.
Policy analysis
The Department must honor multiple QDROs for a participant's account when the participant has more than one marriage that is legally terminated, and the court awards a share of the participant's WRS account as part of the division of marital assets. Determining the effects of multiple QDROs on both the participant's and alternate payee's rights and benefits is extremely complex. The proposed rule would specify how the participant's benefits would be divided in the case of multiple QDROs.
The alternative to promulgating this rule would be to continue the confusion and lack of clarity in administration of multiple QDROs ordering the division of the account and/or annuity of a participant who has more than one legally terminated marriage. This would increase the risk of inconsistent account and annuity divisions in these situations, and participants, alternate payees, their attorneys and the courts would not have clear guidance on the results of multiple account divisions based on multiple QDROs.
Statutory authority
Staff time required
20 hours.
Health and Family Services
Subject
To establish a separate prescription drug coinsurance benefit relating to the Health Insurance Risk-Sharing Plan (HIRSP) with limits on HIRSP policyholder out-of-pocket expenses for covered prescription drugs.
Policy analysis
The State of Wisconsin in 1981 established a Health Insurance Risk-Sharing Plan for the purpose of making health insurance coverage available to medically uninsured residents of the state. HIRSP health insurance coverage includes prescription drug coverage. Currently, two major issues affect HIRSP prescription drug coverage. The first issue is that pharmacies have difficulty determining the financial liability of HIRSP policyholders. The second issue is that the current system of HIRSP reimbursement to policyholders for prescription drug costs is financially burdensome to HIRSP policyholders. To resolve these issues, the department proposes to implement effective January 1, 2002, new coinsurance provisions for HIRSP's drug benefit that will clarify the financial liability of HIRSP policyholders for covered prescription drug costs and eliminate the process of reimbursing policyholders for prescription drug expenses by establishing policyholders' minimum and maximum out-of-pocket costs for covered prescription drugs.
The proposed rules will affect approximately 12,000 HIRSP policyholders statewide.
Statutory authority
The Department's statutory authority is derived from s.
149.14 (5) (e), Stats., as amended by
2001 Wisconsin Act 16 and s.
149.146 (2) (am) 5., Stats., as created by
2001 Wisconsin Act 16. Section 9123 (9w) of the Act authorizes the department to use the emergency rulemaking procedures under s.
227.24, Stats., to promulgate rules under s.
149.14 (5) (e), Stats., as amended by the Act and s.
149.146 (2) (am) 5., Stats., as created by the Act. Notwithstanding s.
227.24 (1) (a),
(2) (b), and
(3), Stats., s. 9123 (9w), exempts the department from making a finding of emergency and from providing evidence that promulgating this rules as emergency rule is necessary for the preservation of public peace, health, safety, or welfare. The HIRSP Board of Governors on September 13, 2001, approved the out-of-pocket limits established in these rules, as required by s.
149.14 (5) (e) Stats., as amended and s.
149.146 (2) (am) 5., Stats., as created by
2001 Wisconsin Act 16.
Staff time required
45 hours.
Natural Resources
Subject
Commercial fishing in Lake Superior
Policy analysis
State and tribal representatives recently agreed to amend the Lake Superior State-Tribal Agreement to allow an increase in the harvest of lake trout. The proposed rule change is needed to implement the amendments as soon as possible. The order would also include the provisions requiring commercial fishers on Lake Superior to mark all gill net floats with their license number, setting a minimum distance from the surface for floating gill nets and deleting some outdated language from the administrative code.
Statutory authority
Staff time required
25 hours.
Natural Resources
Subject
Pilot program for alternative methods of compliance with effective recycling program requirements contained in ch.
NR 544.
Policy analysis
The issues to be resolved by this rule include what materials should be recycled as alternatives to banned materials; what are the goals for materials to be recycled as a percentage of solid waste generated in a geographic area; what procedures should be in place to evaluate if established goals are being achieved; and how will exiting rules be impacted by the program and what rule revisions will be necessary.
The Department is directed to select nine responsible units to participate in the pilot program; three shall have a population of less than 25,000, three shall have a population between 25,000 and 50,000 and three shall have a population of greater than 50,000.
Statutory authority
Staff time required
Approximately 225 hours will be needed by the Department.
Public Instruction
Subject
Access to Statewide Examinations
Policy analysis
2001 Wis. Act 16 created s.
118.30 (3) (b), Stats., requiring the state superintendent to promulgate rules establishing procedures to allow a person to view the 4
th, 8
th, and 10
th grade Wisconsin Knowledge and Concept Exams (WKCE) and the High School Graduation Exam.
• To require that any requests made to review the exams be made in writing within 90 days after the date of the administration of the exam.
• To the extent feasible, protect the security and the confidentiality of the exams.
The Department has provided guidance on proper test use and review in a document titled, “DPI Guidelines for Appropriate Testing Procedures." Rules will be promulgated based upon the guidance provided in this document.
New policies will include a requirement that districts use standardized procedures and maintain proper documentation for test review. Further, violations of proper test review procedures must be reported to the Department.
The department is required to promulgate rules to allow persons to view the 4th, 8th, and 10th grade WKCE and the High School Graduation Examination and to protect, to the extent feasible, the security and confidentiality of these exams. Therefore, there are no policy alternatives.
Statutory authority
Staff time required
The amount of time needed for rule development by department staff and the amount of other resources necessary are indeterminable. The time needed in creating the rule language, itself, will be minimal. However, the time involved with guiding the rule through the required rule promulgation process is fairly significant. The rule process takes more than 6 months to complete.
Transportation
Subject
Objective of the Rule. This proposal will amend ch.
Trans 276, which establishes a network of highways on which long combination vehicles may operate, by adding 5 highway segments to the network. The actual segments being proposed are:
Taylor County
CTH “A" from STH 13 in Stetsonville to Marathon County Line.
Marathon County
CTH “F" from West County Line to CTH “M"
CTH “M" from CTH “F" to STH 97 in Athens
CTH “A" from STH 13 East of Dorchester to STH 97 South of Athens
Corlad Road from CTH “A" to CTH “M" West of Athens
Policy analysis
Federal law requires the Department of Transportation to react within 90 days to requests for changes to the long truck route network. Wisconsin state law requires that the Department use the administrative rule process to deal with changes to the long truck route network. Chapter
Trans 276 is an existing rule set up for long truck routes. The Department has received a request from E. J. Peter Trucking, Inc., in Marathon County, to add these highway segments.
Statutory authority
Staff time required
It is estimated that state employees will spend 40 hours on the rulemaking process, including research, drafting and conducting a public hearing.
Transportation
Subject
Objective of the Rule. This rule making will amend ch.
Trans 320 which establishes a uniform method for the determination of fees that may be charged by the State Patrol for security and law enforcement services provided at public events, and for escort services provided to motor carriers who transport oversize/overweight loads. The authority of the State Patrol to charge for services was expanded by
2001 Wisconsin Act 16 section
2339. The State Patrol now has additional authority to charge for security and traffic control services provided at special events sponsored by public organizations. Previously, this authority to charge was limited to services provided at special events sponsored by private organizations.
2001 Wis. Act 16 section
2340 also provided the State Patrol with new authority to charge for security and traffic law enforcement services provided during the installation, inspection, removal, relocation or repair of a utility facility located on a public highway.
This rule making will enable the State Patrol to implement the additional authority to charge for services that was provided in Act 16.
Policy analysis
The State Patrol currently provides security and traffic control services to both private and public organizations that sponsor public events. Prior to the enactment of Act 16, the State Patrol could not charge for these services and deposit associated revenues in a program revenue appropriation that could be used to offset expenses, unless the sponsor was considered to be a private organization and an admission fee was charged for the event. In some instances, the Department of Administration has reluctantly approved the treatment of fees paid by public organizations for services provided at public events as refunds of expenditure. However, this approval was based upon the mutual understanding that this was an interim solution, pending approval of statutory changes included in Act 16.
The provision of security and traffic control services at certain public events sponsored by public organizations has involved the assignment of significant numbers of State Patrol officers and significant costs. Since these costs have not always been reimbursed, the ability of the State Patrol to meet other core obligations has been affected. In some instances, these public organizations have been willing and able to provide funding to offset these costs. For example, the University of Wisconsin-Madison agreed to reimburse the State Patrol for expenses resulting from the provision of security and traffic control services at home football games.
This rule making will enable the State Patrol to directly charge public organizations for these public event services and deposit associated revenues in a program revenue appropriation that will be used to offset related expenses.
