Scope statements
Employment Relations Commission
Subject
Increasing the existing filing fees for Commission services so the Commission can retain employees necessary to avoid significant harm to the Commission's ability to provide timely dispute resolution services.
Policy analysis
Current and increased filing fees paid by users of Commission services provide program revenue support for employees who provide dispute resolution services that preserve labor peace in Wisconsin.
Statutory authority
Staff time required
25 hours.
Insurance
Subject
Relating to mortality tables and actuarial analysis, asset adequacy testing, reports and opinions.
Objective of the rule. The proposed rule would allow life insurers to use the 2001 CSO Mortality Table to calculate reserves and non-forfeiture benefits on life policies The proposed rule will also revise contains requirements regarding the testing and reporting of actuarial information by life insurers including fraternal benefit societies and revise the current mortality table rule.
Policy analysis
The existing requirements are contained primarily in s.
Ins 2.80 and Subch.
V of Ch. 50, Wis. Adm. Code. These provisions establish the mortality tables to be used by insurers to calculate reserves and non-forfeiture benefits and the requirements relating to testing and reporting of actuarial information. The proposed rule will allow use of an updated mortality table prepared by the National Association of Insurance Commissioners. This is under consideration because the table prepared by the NAIC more closely reflects current mortality experience. The proposed rule also will revise the requirements of testing and reporting actuarial information to eliminate some exemptions from asset adequacy analysis, and provide for more focused information in the actuarial opinion and memorandum. This proposed rule is under consideration because it is recommended for adoption by the NAIC, will increase the ability of management and regulators to monitor financial status, and assist with solvency regulation and analysis.
Statutory authority
Staff time required
100 hours.
Insurance
Subject
Regarding Chapter
Ins 50, Wis. Adm. Code, relating to annual audited financial reports, annual financial statements and examinations.
Objective of the rule. The purpose of this rule is to assure the availability of timely and reliable information concerning the financial condition of insurers by prescribing reasonable minimum standards and techniques of accounting and data handling.
Policy analysis
This rule clarifies the definition of work papers to reflect current technology, allows for disqualification of accounting firms or accountants who enter into agreements of indemnification with respect to insurer audits, and expands the duties and protection of accountants who conduct insurer audits.
Statutory authority
Staff time required
100 hours.
Natural Resources
Subject
Objective of the rule. The Department's Bureau of Air Management proposes to develop rules in ch.
NR 490 describing when an air pollution control permit becomes effective if the permit applicant seeks a contested case hearing on the permit.
The proposed rule is being developed in response to a decision issued in a Dane County Circuit Court case wherein Wisconsin Manufacturers and Commerce (WMC) and others sought a declaratory judgment on the Department's interpretation of the statute regarding permit appeals. While the Judge found the case was not ripe for declaratory judgment, she agreed with the plaintiff's contention that the Department's interpretation of the statute should be promulgated as administrative rules. The Judge ordered the Department to commence the rulemaking process within 40 days of its order and to diligently pursue rulemaking. She also ordered that the Department's current interpretation of the statute may continue to apply until the rules are promulgated.
Policy analysis
The Department's interpretation of the statute regarding permit appeals is that the entire permit or determination issued by the Department is stayed (not in effect) if it is appealed by the permit applicant. The Department plans to incorporate this interpretation in the proposed rules. Other policy alternatives have been sought by the regulated community, specifically that only that part of the permit appealed is stayed, while the rest of the permit takes effect. These alternatives will be debated as part of the rulemaking process.
Statutory authority
Sections
227.11 (2) (a) and
285.81, Wis. Stats., and Dane County Circuit Court Decision in WMC v. WDNR, (2003).
Staff time required
The Department estimates that it will spend approximately 326 hours of staff time developing this rule.
Natural Resources
Subject
Subject
Amendment of chs.
NR 190 and
191 relating to the establishment of a new 50% cost-share grant program for local units of government to prevent the spread and control of invasive aquatic species in the waters of the state.
Policy analysis
Section
23.22 (2) (c), Stats., directs the DNR to write rules to establish cost-share grants for the control of invasive species as part of a statewide invasive species control program. The new cost-share funding is available for local units of government to work with the state to deal with invasive species in inland lakes, streams and the Great Lakes. Careful consideration will be given to the types of activities that will be eligible for the $500,000 annual allotment. Preventing further spread of invasive species to other bodies of water will need to be balanced with the demand for projects to control existing and pioneer invasions in our waterways. While methods of prevention are well known, effective or lasting control methods have yet to be developed or perfected for many invasive aquatic species.
Statutory authority
Staff time required
The DNR will need approximately 210 hours.
Pharmacy Examining Board
Subject
Current requirements of s.
Phar 7.04 exclude the return or exchange of health items from community-based residential facilities, (CBRF's), jails or prison facilities, which are excluded from the definition of “inpatient health care facility". Phar 7.04 would be modified to include CBRF's, jails or prison facilities as a facility from which prescription drugs could be returned or exchanged, under limited circumstances.
Objective of the rule. The objective of modifying Phar 7.04 is to address unnecessarily incurred cost and inconvenience to patients or state agencies currently unable to return or exchange dispensed prescription drugs to the pharmacy from which they were dispensed. In instances where security and storage of dispensed prescription drugs in the CBRF, jail or prison facility context insures that the drugs are not defective, adulterated, misbranded or dispensed beyond their expiration date, such drugs would be treated similar to those dispensed in the inpatient health care facility context.
Policy analysis
The rationale for the current practices allowed by s.
Phar 7.04 will be reviewed to determine whether a proper distinction and difference in treatment can continue to be drawn in every CBRF, jail or prison facility context pertaining to the return or exchange of prescription drugs. Those instances of proper security and storage will be identified where possible, in combination with applicable administrative rules of the Department of Health and Family Services and Department of Corrections to cooperatively develop modifications to s.
Phar 7.04 to allow increased dispensing flexibility to better meet patient need.
Statutory authority
Staff time required
100 hours.
Public Instruction
Subject
Commencement of School Term.
Policy analysis
Chapter
PI 27, relating to the commencement of a school term, is being modified to allow a specific high school in Milwaukee to begin classes prior to September 1 without making an annual waiver request to the department. This high school is a registered participant in the International Baccalaureate Program and has 90 percent of its pupils involved in the program. The program has a standardized examination schedule. The examination period is usually scheduled for early May. In 2004, the examination period is May 4 – 20, 2004. The program has prescribed curriculum and designated courses which have to be covered by the examination date. Because the instructional component of the program would not be completed in time to take the examinations given in May each year, the high school's school term must start prior to September 1.
Policy alternatives
Maintain current law.
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 to create 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 six months to complete.
Revenue
Subject
Notice is hereby given, pursuant to s.
227.135, Wis. Stats., that the Department of Revenue plans to promulgate rules related to the administration of the 2004 use value assessment for agricultural land.
Objective of the rule. To ensure positive and stable 2004 assessments for agricultural land.
Policy analysis
Pursuant to s.
70.32 (2r) (c), agricultural land is assessed according to the income that could be generated from its rental for agricultural use. Wisconsin Chapter
Tax 18 specifies the formula that is used to estimate the net rental income per acre. The formula estimates the net income per acre of land in corn production based on a 5-year average corn price per bushel, cost of corn production per bushel and corn yield per acre. The net income is divided by a capitalization rate that is based on a 5-year average interest rate for a medium-sized, 1-year adjustable rate mortgage and net tax rate for the property tax levy two years prior to the assessment year.
For reasons of data availability, there is a three-year lag in determining the 5-year average. Thus, the 2003 use value is based on the 5-year average corn price, cost and yield for the 1996-2000 period, and the capitalization rate is based on the 5-year average interest rate for the 1998-2002 period. The 2004 use value is to be based on the 5-year average corn price, cost and yield for the 1997-2001 period, and the capitalization rate is to be based on the 1999-2003 period.
The data for the 1997-2001 period yields negative net income per acre due to declining corn prices and increasing costs of corn production. As a result, reliance on data for the 1997-2001 period will result in negative use values. The department has promulgated an emergency rule, effective October 3, 2003, that would hold the 2004 use values at 2003 levels. The department intends to promulgate a permanent rule to the same effect.
Statutory authority
Staff time required
The total anticipated time commitment to the development of the rule is 120 hours.
Tourism
Subject
Ch.
Tour 1 - relating to the joint effort marketing program.
Objective of rule. The objectives of the rule are to amend Ch.
Tour 1 to allow the secretary of the department to waive the requirement that a project be directed at a local area if that project will make a substantial impact upon the state's tourism economy.
Policy analysis
Description of existing policies relevant to the rule and of new policies proposed to be included in the rule, and an analysis of policy alternatives:
The Joint Effort Marketing program provides grants to non-profit organizations engaged in tourism activities that are directed at increasing tourism spending in a local area. Grant funds may be used for the development of publicity, the production and media placement of advertising and direct mailings that are part of a project and overall advertising plan of the applicant organization intended to increase tourism in Wisconsin.
Funding may be used for advertising of an event, for advertising of a sales promotion and for destination marketing advertising that is not tied to an event or promotion, but which is directed at extending the tourism market for the applicant and which has been identified by the Department as a market for the state.
The proposal would allow the secretary of the department to waive the requirement that a project be directed at a local area if that project will make a substantial impact upon the state's tourism economy.
The policy alternatives are to leave the program regulations as they are or to adopt the change being proposed.
Statutory authority
Staff time required
The Department estimates that it will take approximately 10 hours of staff time on the rule, which includes discussing the rule with the Council on Tourism and interested members of Wisconsin's tourism industry.