A summary of the proposed rules follows:
1. The NASAA Project Group determined that amendments were required to five NASAA Model Rules pertaining to Custody. Accordingly, substantive amendments were made to the Asset Audit Rule [Rule 102(e)(1)-1], a books and records-related rule [Rule 203(a)2], and to the Minimum Financial Requirements for Investment Advisers rule [Rule 202(d)-1]. Less substantive amendments were made to a separate rule regarding bonding requirements [Rule 202(e)-1, and an Unethical Practices provision [Rule 102(a)(4)-1]. The April 2004 amended NASAA Model Custody Rules incorporate the changes to all five of those rules and will be included in a repealed and re-created rule DFI-Sec 5.035, Wis. Adm. Code.
2. The existing Wisconsin rule defining “custody" in DFI-Sec 1.02 (17), Wis. Adm. Code, will be amended.
3. The existing Wisconsin net capital rule in DFI-Sec 5.02 (2), Wis. Adm. Code, applicable to investment advisers having custody of customer assets will be amended.
4. The existing Wisconsin rule in DFI-Sec 5.03 (2), Wis. Adm. Code, prescribing certain books and recordkeeping requirements for investment advisers having custody of customer assets will be repealed and re-created.
5. The existing Wisconsin business practices rule in DFI-Sec 5.06 (12), Wis. Adm. Code, applicable to investment advisers having custody of customer assets will be amended.
Initial Regulatory Flexibility Analysis
Types of small businesses that could be affected by certain of the rule revisions are:
1. Investment adviser licensees under the Wisconsin Securities Law with fewer than 25 full-time employees who meet the other criteria of sec. 227.114(l)(a), Wis. Stats. The proposed revisions to the securities investment adviser custody requirements will be applicable equally to all licensed investment advisers because the requirements involved are for the protection and benefit of all Wisconsin customers of those firms. All Wisconsin customers of Wisconsin-licensed securities investment advisers are entitled to the public investor protection benefits of the licensing requirements and Rule of Conduct provisions, irrespective of the size of the firm providing the investment advisory services. Under the rule-making procedures used by the Division of Securities, a copy of the proposed rules is mailed to each investment adviser licensed or notice-filed in Wisconsin, as well as to each broker-dealer licensed in Wisconsin, notifying them of the proposed revisions and soliciting written comments or attendance at the public hearing regarding the proposed rules.
Also, repeating what was stated in a preceding section, because the proposed rules are revisions/amendments to existing Wisconsin Securities Law regulatory requirements applicable solely to Wisconsin-licensed investment advisers having custody of customer assets -- which requirements those licensees should already be in compliance with -- the proposed rules will not have an effect on "small-business" in general (outside the investment advisory business).
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
See numbered Item 4 of the Summary above.
Fiscal Estimate Summary
A summary of the fiscal effects of the proposed rule revisions is as follows: (i) No one-time revenue fluctuations; (ii) No annual fiscal effects; (iii) No long-range fiscal implications; (iv) No fiscal effect on local units of government.
Contact Person
A copy of the full text of the proposed rule revisions and fiscal estimate may be obtained from:
Randall E. Schumann (608) 266-3414
Legal Counsel for the Division of Securities
Department of Financial Institutions
345 West Washington Avenue, 4th Floor
P. O. Box 1768
Madison, WI 53701
Place where comments are to be submitted and deadline for submission:
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 of the Division of Securities, 345 West Washington Avenue, PO Box 1768, Madison Wisconsin, 53701.
Notice of Hearings
Health and Family Services
(Community Services, Chs.
HFS 30—)
(Medical Assistance, Chs.
HFS 100—)
Notice is hereby given that pursuant to ss.
227.16 (1),
227.17,
227.18, and
227.24 (4), Stats., the Department of Health and Family Services will hold public hearings to consider the proposed permanent rules and emergency rules amending s.
HFS 107.13 (2) (c) 5., and
(4) (c) 4., and creating ch.
HFS 36, ss.
HFS 105.257 and
107.13 (6) (b) 4., and
(7), relating to standards for certification and criteria for determining the need for psychosocial rehabilitation services, and other conditions of coverage of community-based psychosocial rehabilitation services under the medical assistance program.
The Department anticipates that the emergency rules will take effect on July 1, 2004.
Hearing Information
The public hearings will be held:
Date & Time Location
July 6, 2004 SRO Room 176
Tuesday 2917 International Lane
10:00 a.m. to 1:00 p.m. Madison, WI
July 7, 2004 WRO Room 123
Wednesday 610 Gibson Street
10:00 a.m. to 1:00 p.m. Eau Claire, WI
July 8, 2004 NERO Room 152 A
Thursday 200 N. Jefferson Street
10:00 a.m. to 1:00 p.m. Green Bay, WI
The hearing sites are fully accessible to people with disabilities. If you are hearing or visually impaired, do not speak English, or have circumstances that 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 given above at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Written comments, on both the proposed permanent rules and the emergency rules, may be submitted in lieu of attending a public hearing, by regular mail or email to the contact person listed below. Written comments for the proposed permanent rules and the emergency rules may also be submitted using the Wisconsin Administrative Rules website at the web address listed below.
The deadline for submitting comments on both the proposed permanent rules and the emergency rules is 4:30 p.m., July 13, 2004.
Analysis Prepared by the Department of Health and Family Services
The Department proposes to establish the scope of community-based psychosocial rehabilitation services programs, standards for certification and criteria for determining the need for psychosocial rehabilitation services, and other conditions of coverage of community-based psychosocial rehabilitation services under the medical assistance program as authorized by ss.
49.45 (30e) and
51.42 (7) (b), Stats. The Department anticipates that the rules created will complement services provided by existing community support programs under s.
51.421, Stats., by making a fuller array of mental health and substance-use and addiction disorder services potentially available to those in need in each county or tribe. The Department further anticipates that the rules will allow for the creation of a broad range of flexible, consumer-centered, recovery-oriented psychosocial rehabilitation services to both minors and adults, including elders, whose psychosocial needs require more than outpatient therapy, but less than the level of services provided by existing community support programs. Certified community-based psychosocial rehabilitation services programs that meet the requirements of s.
49.45 (30e), Stats., and the proposed ch.
HFS 36 and applicable requirements or chs.
HFS 105 and
107 may be fully or partially funded by medical assistance with county or tribal match. These programs may also coordinate with other existing funding sources.
Fiscal Estimate
This order implements a new mental health program created under s.
49.45 (30e) (b), Stats., by
1997 Wisconsin Act 27. The Act 27 provision allows counties to receive federal Medical Assistance (MA) funding for services to individuals with mental health problems that require more than outpatient services and less than Community Support Program services. Counties receive the federal funding if they supply the state match funding. These individuals with mental health problems are now being served by counties under case management services, which provide limited reimbursement from MA, with the state match provided by county and state Community Aids. Many of the case management clients require additional treatment and rehabilitation services that are not covered under the targeted case management provisions of MA. This new mental health program will allow coverage by the MA program for these services if the county elects to allocate the funding. The net effect should be an increase in federal revenue to the State and counties for providing services that are presently funded completely by Community Aids and county tax levy.
The Bureau of Quality Assurance (BQA) with the Division of Health Care Financing certifies, licenses and surveys approximately 46 kinds of health care and residential programs in the State of Wisconsin. BQA has identified the following workload and cost increases related to the implementation of this rule. Since this is a new program, BQA Program Certification staff would be required to certify county community-based psychosocial service programs to receive this new MA reimbursement. BQA estimates that an additional 72 surveys (taking 14 hours to complete) and 5 complaint surveys (taking 6.5 hours to complete), would entail an additional 1.00 FTE's worth of work at a total cost of $60,200 all funds. The costs would be split funded 25% PRO ($15,100) and 75% FED ($45,100), since certifying, licensing and surveying are considered MA-billable functions. Also, given the current number of county programs, BQA estimates that 6 counties (at most) would see a $50 fee increase. Since the Department intends to absorb the additional workload related to the implementation of this rule, this rule will not affect revenues or expenditures beyond what was already assumed in Act 27.
Effect on Small Business
There will be no adverse affect on small businesses. If psychosocial rehabilitation services currently are being provided, then the individual consumer or the county of responsibility is paying for the cost of the services. This rule will permit the county of responsibility to use their existing funds that are being expended for these services as the required match to the federal portion of Medicaid funding (federal financial participation or FFP). The increase in available funding may result in an increase in revenues for a local small business if the county and the consumer select the business as a provider of a component of the psychosocial rehabilitation services for the consumer.
For More Information
A copy of the full text of the rules and the full text of the fiscal estimate, and other documents associated with this rulemaking may be obtained, at no charge, from the Wisconsin Administrative Rules website at
http://adminrules.wisconsin.gov. At this website you can also register to receive email notification whenever the Department posts new information about this rulemaking and, during the public comment period, you can submit comments on the rulemaking order electronically and view comments that others have submitted about the rule.
A copy of the full text of the rule and the fiscal estimate may also be obtained by contacting the Department's representative listed below:
Sally Raschick
Bureau of Mental Health and Substance Abuse Services
1 West Wilson Street
P.O. Box 7851
Madison, WI 53707-7851
(608) 261-9313 or, if you are hearing impaired,
(608) 261-9314 (TTY)
Notice of Hearing
Health and Family Services
(Medical Assistance, Chs.
HFS 100—)
Notice is hereby given that, pursuant to ss.
49.688, Stats., the Department of Health and Family Services will hold a public hearing to consider revisions to ch.
HFS 109, Wis. Adm. Code, relating to operation of the SeniorCare prescription drug assistance program.
Hearing Information
The public hearing will be held:
Date & Time Location
June 30, 2004 Room 751
Wednesday State Office Building
From 10:00 AM to Noon 1 West Wilson St.
Madison WI
The hearing site is fully accessible to people with disabilities. Parking that accommodates 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
SeniorCare is Wisconsin's Prescription Drug Assistance Program for Wisconsin residents who are 65 years of age or older and who meet eligibility requirements. The Department administers the program under ch.
HFS 109.
2003 Wisconsin Act 33 revised the following cost sharing provisions of SeniorCare:
- It increased the annual enrollment fee from $20 to $30.
- It increased annual program deductibles for persons whose family income is more than 200% of the federal poverty level from $500 to $850.
Through this order, the Department proposes to revise ch.
HFS 109 to conform to these statutory changes.
Contact Person
To find out more about the hearings or to request a copy of the proposed rules, you may write, phone, or e-mail:
