Comments can be emailed to:
James W. Harris
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in this Notice of Hearing.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
3. Explanation of OCI's authority to promulgate the proposed rule under these statutes: OCI has set standards for accounting practices related to the preparation and submission of annual audited financial reports, annual financial statements and examinations required of insurers doing business in Wisconsin. The present rule has been in existence since 1993, and this change is to clarify several aspects of the rule.
4. Related statutes or rules: See the statutes interpreted in paragraph 1, above.
5. The plain language analysis and summary of the proposed rule: This rule clarifies the requirements for qualification of an independent certified public accountant to be retained by an insurer for the purpose of expressing an opinion on financial statements in annual audited financial reports required to be filed with the commissioner. The rule establishes that an accountant or accounting firm is not qualified if an agreement of indemnity or release from liability has been entered into with an insurer with the intent or effect to shift or limit the liability of the accountant or accounting firm for failure to adhere to applicable auditing or professional standards. The rule requires that an independent certified public accountant consider procedures illustrated in the National Association of Insurance Commissioners (NAIC) financial condition examiner's handbook as the accountant deems necessary.
6. Summary of and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule: There are no federal regulations which address annual financial reports, annual financial statements and examinations to be prepared by insurers doing business in Wisconsin.
7. Comparison of similar rules in adjacent states as found by OCI:
Illinois: Il. Adm. Code Title 50, Part 925, Section
925.70, requires annual audited financial reports from insurers doing business in the state that are prepared by a qualified independent certified public accountant that has not either directly or indirectly entered into an agreement of indemnity or release from liability (collectively referred to as indemnification) with respect to the audit of the insurer. In conducting an audit consideration should also be given to procedures illustrated in the Financial Examiner's Handbook promulgated by the National Association of Insurance Commissioners as the accountant deems necessary.
Iowa: Iowa Adm. Code 191-5.25, requires annual audited financial reports from insurers doing business in the state that are prepared by a qualified independent certified public accountant that has not either directly or indirectly entered into an agreement of indemnity or release from liability with respect to the audit of the insurer. In conducting an audit consideration should also be given to procedures illustrated in the Financial Condition Examiner's Handbook promulgated by the National Association of Insurance Commissioners as the independent certified public accountant deems necessary.
Michigan: Mich. Comp. Laws, Ch.
500, requires annual audited financial reports from insurers authorized to do business in the state that are prepared by an independent certified public accountant.
Minnesota: Minn. Stat. Ch. 60A.129, Subd. 3, requires annual audited financial reports from insurers doing business in the state that are prepared by an independent certified public accountant. In conducting an examination of an insurer's financial statements consideration should be given to other procedures illustrated in the Financial Condition Examiner's Handbook issued by the National Association of Insurance Commissioners as the independent certified public accountant considers necessary.
8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:
Under the existing rule, certain qualifications of independent certified public accountants have been set forth, generally in accord with the National Association of Insurance Commissioners (NAIC) annual financial reporting model regulation. Indemnification agreements may provide an auditor an unacceptably broad opportunity to avoid responsibility for failure to find or disclose erroneous or false information put forth by management of an insurer. In the event of a receivership a regulator standing in place of management may be precluded by an indemnity agreement from taking appropriate action if professional negligence has occurred. The NAIC has revised the model to provide that an independent certified public accountant is not qualified if the accountant or firm has entered into an indemnification agreement with respect to an audit of the insurer. This rule amendment brings the Wisconsin rule in conformity with the model regulation.
9. Any analysis and supporting documentation that OCI used in support of OCI's determination of the rule's effect on small businesses under s.
227.114: This rule clarifies the level of independence required of a certified public accountant or firm in its engagement with an insurer, and there is no significant effect on small business.
10. If these changes may have a significant fiscal effect on the private sector, the anticipated costs that will be incurred by private sector in complying with the rule:
These changes will not have a significant fiscal effect on the private sector.
11. A description of the Effect on Small Business: Because this rule applies to all insurers doing business in the state, it may have an effect on the smallest insurers or accounting firms with respect to the engagement agreements utilized. However because the audit rule has been in effect since 1993, any effect should be negligible.
12. Agency contact person: A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the Web site at:
http://oci.wi.gov/ocirules.htm
or by contacting Inger Williams, OCI Services Section, at:
Phone: (608) 264-8110
Address: 125 South Webster St – 2nd Floor,
Madison WI 53702
Mail: PO Box 7873, Madison, WI 53707-7873
13. Place where comments are to be submitted and deadline for submission:
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in the Notice of Hearing.
Mailing address:
James W. Harris
Legal Unit - OCI Rule Comment for Rule Ins 5000
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
James W. Harris
Legal Unit - OCI Rule Comment for Rule Ins 5000
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53702
Email address:
James W. Harris
Fiscal Effect
There will be no state or local government fiscal effect.
Initial Regulatory Flexibility Analysis
Because this rule applies to all insurers doing business in the state, it may have an effect on the smallest insurers or accounting firms with respect to the engagement agreements utilized. However because the audit rule has been in effect since 1993, and this change clarifies the level of independence required of a certified public accountant or firm in its engagement with an insurer, any effect should be negligible.
OCI Small Business Regulatory Coordinator
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266-7843 or at email address
Eileen.Mallow@oci.state.wi.us
Contact Person
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet Web site at
http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Public Information and Communications, OCI, at:
Inger.Williams@oci.state.wi.us, (608) 264-8110, 125 South Webster Street – 2
nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Notice of Hearing
Natural Resources
(Fish, Game, etc., Chs.
NR 1—)
NOTICE IS HEREBY GIVEN that pursuant to ss.
23.091,
23.09 (2) (intro.),
23.11 (1),
23.28 (3),
23.293,
27.01 (2) (j),
27.01 (10) (b) and
(f) and
227.11 (2) (a), Stats., interpreting ss.
23.091,
23.09 (2) (intro.),
23.11 (4),
23.17,
23.175,
23.28 (3),
23.293,
27.01 (2) (i) and
(j),
27.01 (10) (f) and
28.04 (2), Stats., the Department of Natural Resources will hold public hearings on revisions to chs.
NR 1,
45 and
51, Wis. Adm. Code, relating to use of department properties. The proposed rule contains a number of changes for the purpose of improving or clarifying existing rules, creating a few property specific rules and amending a number of rules affecting fees and reservations in state parks and forests.
Seven state parks are being proposed to be added to the list of parks that charge an additional $3.00 per day for camping due to local market conditions and there is also a proposal that the fee be applied year round to all 15 parks that charge this differential. A state trail season pass fee increase of $5.00 is being proposed to meet increasing costs of maintaining and managing the trails. This would increase the annual fee from $15 to $20. Other proposals are aimed at simplifying the fee system in response to requests by the users.
A change in facility reservations would allow reservations to be made 11 months in advance for picnic areas, shelters, auditoriums, amphitheaters, tepees and yurts. The current rule allows reservations to be taken on the first business day in January.
Rules are being proposed for the newly established Lake Shore State Park that will establish hours and prohibit alcohol consumption outside or organized events.
Language has been included in ch.
NR 1 to clarify the purpose and management of State Ice Age Trail areas, and to identify allowed uses and activities in order to provide consistency and improve management.
Other miscellaneous changes are proposed.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at
SmallBusiness@dnr.state.wi.us or by calling (608) 266-1959.
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on:
April 16, 2007
Monday at 4:00 p.m.
|
Gathering Waters Room, DNR South Central Region Hdqrs.
3911 Fish Hatchery Road
Fitchburg
|
April 23, 2007
Monday at 4:00 p.m.
|
Auditorium
Havenwoods State Forest
6141 N. Hopkins Street
Milwaukee
|
April 25, 2007
Wednesday at 4:00 p.m.
|
Council Chambers
Wausau City Hall
407 Grant Street
Wausau
|
NOTICE IS HEREBY FURTHER GIVEN that the hearing record will be open until at least 6:00 p.m. at each hearing.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of information material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Kate Fitzgerald at (608) 267-2764 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Effect
The department is proposing to add seven properties to the existing list of high-demand properties, and proposes the elimination of the seasonal limitation on this fee. In addition, the department is proposing to increase the state trail fee from its current price of $15 per year to $20 per year. The increased revenues are identified below.
Adding seven properties to the current list of eight high demand properties allows the department to charge an additional $3 per night at the additional properties, and eliminating the seasonal aspect to this fee allows the department to apply the fee year around. Based on visitation rates at the seven properties, these changes are expected to generate an additional $112,000 annually beginning in FY 09.
Increasing the Trail pass from $15 to $20 per year is expected to generate an additional $158,800 annually beginning in FY 09, based on estimated sales of 31,760 trail passes (31,760 x $5 = $158,800).
The proposed rule and fiscal estimate may be reviewed and comments electronically submitted at the following Internet site: http;//adminrules.wisconsin.gov. Written comments on the proposed rule may be submitted via U.S. mail to Ms. Kate Fitzgerald, Bureau of Facilities and Lands, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until May 4, 2007. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. A personal copy of the proposed rule and fiscal estimate may be obtained from Ms. Fitzgerald.
Notice of Hearing
Natural Resources
(Fish, Game, etc., Chs.
NR 1—)
1. Revises the annual stumpage rates for the period between November 1, 2007 and October 31, 2008 as required in ss.
77.06(2) and
77.91(1), Stats. The average change for saw timber is a 0.32% increase over current rates. The pulpwood prices, on average, would increase 1.52%.
2. Amends the catastrophic loss provisions to more fairly assess the yield and severance taxes for timber harvested as a result of a catastrophic loss. Catastrophic loss (30% reduction in stumpage value) is granted when timber harvested meets requirements in s.
NR 46.30(1). The proposal is to reduce the acreage requirement from 10 to 5 contiguous acres and to increase the reduction in stumpage value from 30% to 70% for catastrophic loss caused by fire mortality.
3. Amends the rule to comply with
2005 Wis. Act 299 changing the requirement that the contiguous acres must be in one municipality to be enrolled under the Managed Forest Law. Under the amended rule, all land under the same ownership will be included on one petition. If there is more than one county, the order of designation must be recorded in each county. The proposal requires an application fee of $20 per county to cover the recording costs in each county.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., the proposed rule may have an impact on small businesses. The initial regulatory flexibility analysis is as follows:
a. Types of small businesses affected: Any business with land enrolled in either the Managed Forest Law or the Forest Crop Law or wishing to enroll land under the Managed Forest Law
b. Description of reporting or bookkeeping procedures required: No procedures not already required.
c. Description of professional skills required: No new skills are required.
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
