(3) A designated beneficiary shall not authorize distribution or withdrawal of account funds.
(4) NONQUALIFIED DISTRIBUTION. A distribution of funds from an account for any use other than qualified higher education expenses for the designated beneficiary constitutes a nonqualified distribution and may be subject to the additional tax imposed by section
529(c)(6) of the internal revenue code.
(5) QUALIFIED DISTRIBUTION. A distribution of funds to pay for the qualified higher education expenses of a designated beneficiary constitutes a qualified distribution. An account owner may request a qualified distribution by submitting a properly completed distribution request form, and all documentary evidence necessary to verify the claimed qualified higher education expenses, as determined by the program manager and the board, to the program manager.
Treas 1.12 Distributions Due to Death, Disability or Scholarship of Beneficiary. (1) Prior to a distribution from an account due to the death or disability of the designated beneficiary, or because the beneficiary has received a scholarship to be applied toward attendance at an eligible education institution, the program manager may require either of the following:
(a) Certification by the account owner that the distribution is due to the death or disability of the designated beneficiary or because the designated beneficiary has received a scholarship. The program manager may withhold and reserve as a penalty a portion of the distribution made as a result of such distribution request until the program manager receives written confirmation from an appropriate authority.
(b) Written confirmation from an appropriate authority that the designated beneficiary has died, become disabled, or received a scholarship in the amount of the requested distribution.
(2) A penalty-free distribution due to the death or disability of a beneficiary may be for an amount up to the total account balance for all accounts for that designated beneficiary. A penalty-free distribution due to a scholarship awarded to a designated beneficiary may be for an amount up to the total scholarship award.
Treas 1.13 Refund of qualified distribution payment. An eligible educational institution that owes a full or partial refund of a qualified distribution due to an overpayment of educational expenses shall pay the refund directly to the program manager for credit to the applicable designated beneficiary's account. A refund may not be paid directly to the designated beneficiary or account owner.
Treas 1.14 Account termination. (1) The board shall determine the conditions under which an account may be terminated, including but not limited to the following:
(a)
the account balance is below an established minimum.
(b)
The account is inactive for an established amount of time.
(c)
Any portion of the account remains unused 10 years after the anticipated academic year of the designated beneficiary's initial enrollment in an eligible educational institution.
(d)
The account owner or the designated beneficiary provides false or misleading information to the board, the program manager, or an eligible educational institution.
(2) Prior to termination, the program manager shall give reasonable notice to the account owner of the proposed termination. The notice shall provide a reasonable period of time, as determined by the board, in which to prevent termination by either making an additional contribution or a qualified distribution as necessary. Upon termination, the account balance shall be paid to the account owner as a nonqualified distribution, subject to applicable federal or state taxes, and any additional fees as determined by the board.
Treas 1.15 Fees. The board may charge account owners a fee for the administrative expenses of the program. Fees shall be clearly identified in the program description that accompanies the participation agreement.
Treas 1.16 Penalties. The board may impose penalties as necessary to maintain eligibility as a qualified tuition program under section
529 of the internal revenue code.
Treas 1.17 Investment Policies. The board shall establish all investment guidelines for the program.
Initial Regulatory Flexibility Analysis
Pursuant to section
227.114, Stats., the rule herein is not expected to negatively impact small businesses.
Fiscal Estimate
No State Fiscal Effect. The rule establishes procedures for operation of the Wisconsin college savings program. The program has been budgeted based on estimates of participation. The procedures permit the program to proceed and do not change the basis for participation in the program.
Contact Person
Marty Olle
Office of the State Treasurer
1 South Pinckney Street, 5th Floor
P.O. Box 7871
Madison, WI 53707-7871
(608) 264-7886
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to Sections
49.137 (4m) and
227.11, Stats., the Department of Workforce Development proposes to hold a public hearing to consider the creation of rules relating to grants supporting community child care initiatives.
Hearing Information:
February 26, 2002 GEF 1 Building, Room B103
Tuesday 201 E. Washington Avenue
1:30 p.m. MADISON
Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.
Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.
Analysis Prepared by the Department of Workforce Development
In July 2000, the Joint Finance Committee approved expenditure authority for a new program that allows the Department of Workforce Development to utilize monies available from federal child care and development block grant funds to award grants to local governments that can identify and certify the required match. Statutory authority for the program was included in
2001 Wis. Act 16 at s.
49.137 (4m), Stats.
The proposed rules specify the eligibility criteria and procedures for awarding the grants under s.
49.137 (4m), Stats. The department shall periodically publish a request for proposals for community child care initiatives. Any local government or tribe that is located in Wisconsin may submit an application. A single application may be submitted by a local government or tribe that certifies all the match funds required for the requested grant amount. A cooperative application may be submitted by several local governments or tribes that submit a package of otherwise single applications that individually identify match and request separate agreements with the department. A collaborative application may be submitted by one local government or tribe on behalf of two or more local governments or tribes that provide matching funds.
A local government or tribe that applies for funds must certify matching expenditures. The minimum match expenditure required under federal law is the federal medical assistance percentage for Wisconsin for the federal fiscal year in which the match expenditure occurs. The department may round this percentage of required match to the nearest higher full percentage point. A match expenditure must be from locally-generated revenues or federal revenues specifically authorized by federal law to be used as match to federal funds. A match expenditure may not be used as match to any other state or federal funds, must be made during the required matching period, and must be made for qualifying child care services and programs, including programs with the following purposes:
• Providing low-income families with financial resources to find and access quality child care for their children.
• Enhancing the quality and increasing the supply of child care for all families, including those who receive no direct assistance under s.
49.155, Stats.
• Providing parents with a broad range of options in addressing their child care needs.
• Improving the quality of and coordination among child care programs and early childhood development programs.
• Increasing the availability of early childhood development care services and before- and after-school care services.
• Educating consumers about child care.
• Improving the health and safety aspects of child care, including regulation of child care.
Expenditures for public pre-kindergarten programs or pre-school programs operated by public school districts may not exceed 20% of the total match expenditure for each application.
A local government or tribe may use grant funds received under this chapter in the following ways:
• Enhancing the quality and increasing the supply of child care for all families, including those who receive no direct assistance under s.
49.155, Stats.
• Providing parents with a broad range of options in addressing their child care needs.
• Improving the quality of and coordination among child care programs and early childhood development programs.
• Increasing the availability of early childhood development care services and before- and after-school care services.
• Educating consumers about child care.
• Improving the health and safety aspects of child care, including regulation of child care.
• Providing crisis respite child care to children in protective services cases or in need of protective services.
A local government or tribe may not use grant funds received under this chapter for purchase of real estate; construction or major remodeling; kindergarten to 12th grade public education or care services provided to students during the regular school day; direct purchase or payment of child care services, unless the child is receiving or is in need of protective services; or public pre-kindergarten services.
A local government that is awarded a grant based on a single application may not spend more than 5% of the grant on administrative costs. The department may allow a local government that is awarded a grant based on a cooperative application to spend up to 10% of the grant on administrative costs. The department may allow a local government or tribe that is awarded a grant based on a collaborative application to spend up to 15% of the grant on administrative costs.
The available grant funds will be allocated for residents of each county of the state based equally on the county's percentage of the state's low-income children and percentage of the state's recent births. The amount of an initial grant will be determined based on the amount requested by the applicant, the amount of match identified by the applicant, the amount of funding allocated to the county or counties proposed for service by the applicant, the amount of funding requested by all applicants proposing to serve residents of the county or counties involved, and the amount of funding available due to reallocation from other counties.
A continuing grant may be offered to a local government or tribe for 2 funding cycles after the initial grant was awarded. A local government or tribe may be eligible for a continuing grant if the local government or tribe is proposing to continue the same program that was funded by the initial grant and the local government or tribe complied with all requirements associated with the initial grant. If the local government or tribe is eligible for a continuing grant and funding is available, the department shall fund a local government or tribe's request for a continuing grant before initial grants are funded and at a level of 75 percent of the initial grant if matching requirements are met. Additional funds may be provided if the applicant identifies sufficient match and funds are available under initial grant rules. The amount of a continuing grant may be adjusted to reflect the applicant's record of completing previous match or spending agreements under this program and other aspects of the applicant's record of doing business with the department.
Initial Regulatory Flexibility Analysis
The proposed rules do not affect small business as defined in s.
227.14, Stats.
Fiscal Impact
Section
49.137 (4m), Stats., authorizes a program that may increase revenue for local governments that receive a grant. The proposed rules specify procedural information for awarding the grants but have no fiscal effect.
Contact Information
A paper copy may be obtained at no charge by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
201 E. Washington Avenue
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written Comments
Written comments on the proposed rules received at the above address and email comments sent to
stiefba@dwd.state.wi.us no later than February 28, 2002, will be given the same consideration as testimony presented at the hearing.
Notice of Hearing
Workforce Development
NOTICE IS HEREBY GIVEN that pursuant to Sections
66.0903 (5),
103.49 (3g),
779.14 (1s), and
227.11, Stats., the Department of Workforce Development proposes to hold a public hearing to consider the amendment and creation of rules relating to the adjustment of thresholds for application of prevailing wage rates and payment and performance assurance requirements.
Hearing Information:
February 27, 2002 GEF 1 Building, Room B103
Wednesday 201 E. Washington Avenue
1:30 p.m. MADISON
Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.
Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.
