Under current rules, Johne's disease test samples must normally be collected by accredited veterinarians. This rule allows Dairy Herd Improvement Technicians to collect milk samples that are used as Johne's disease test samples. That will make it easier, and less costly, for dairy farmers to participate in the Johne's disease herd testing and management program.
Current rules exempt imported bovine animals (cattle and bison) from the requirement of a pre-import tuberculosis test if the animals originate from a state that USDA has classified as “TB-free" if that state accepts Wisconsin animals without a TB test. Under this rule, the exemption does not apply if the state of origin has a confirmed TB-positive herd, until that herd is depopulated and all epidemiologically linked herds have tested negative for TB. This rule also prohibits imports of cattle originating from Mexico, except directly to slaughter. This rule will help prevent imports of diseased cattle, and provide important protection for Wisconsin's livestock industry. It will not have significant adverse effects on the livestock industry.
Poultry Producers
Under current rules, a poultry flock owner may voluntarily enroll in the National Poultry Improvement Plan (enrollment facilitates the sale and movement of poultry). Under this rule, a flock owner may not enroll unless the owner has registered flock premises under Wisconsin's livestock premises identification program. This will not have a significant impact on flock owners, because registration is already required by law.
Current rules regulate poultry imports to Wisconsin. This rule modifies poultry import standards, to provide more flexible options for poultry importers. This rule will have no adverse impact on poultry importers.
Animal Markets, Dealers and Truckers
This rule does all of the following:
• Eliminates the current requirement for animal market operators, animal dealers and animal truckers to pass a test before being initially licensed by DATCP.
• Requires animal market operators, animal dealers and animal truckers to transport and handle animals in a safe and humane manner.
• Clarifies animal transport vehicle registration requirements.
• Requires animal market operators, animal dealers and animal truckers to record the official individual identification of goats that bear official individual identification.
• Requires animal market operators, animal dealers and animal truckers to record the livestock premises code, if any, of each premises from which the operator receives or to which the operator ships livestock.
• Requires operators of federally-approved livestock import markets to disclose, to livestock recipients, the state of origin of livestock leaving the import market.
This rule will simplify licensing of animal market operators, dealers and truckers, by eliminating current testing requirements. This rule will require some animal market operators, dealers and truckers to make minor changes in recordkeeping and operating procedures. Recordkeeping changes will improve disease control and traceback capability, for the benefit of the entire livestock industry. This rule will not have any significant adverse effect on animal market operators, dealers or truckers.
Persons Keeping Livestock; Premises Registration
Under current law, a person who keeps livestock at a location in this state is required to register that location with DATCP. Under current rules, the person must renew the registration annually. If the person holds another license from the department, the person must register as part of the license application process.
This rule extends the renewal period from one year to 3 years. Under this rule, a license holder may register as part of the license application process but is not required to do so (the person may register separately). Under this rule, DATCP may register known livestock premises if the livestock operator fails to do so (because the operator has religious objections, for example). These changes will make it easier and more convenient for livestock operators to comply with premises registration requirements. This rule will have no adverse impact on the livestock industry.
Slaughter Establishments
This rule clarifies the current prohibition against removing live animals from slaughter establishments. This rule will not have any adverse effect on slaughter establishments.
Disease Indemnities
This rule clarifies the procedures that DATCP will use to determine the appraised value of animals condemned for disease control purposes, in order to determine the amount of state indemnity payments. This rule will not have any significant adverse effect on livestock operators, and will clarify indemnity procedures.
Small Business Analysis
Overall, this rule improves disease control and prevention for the benefit of the entire livestock and aquaculture industry. In many cases, this rule will actually improve flexibility and reduce costs for individual businesses, including small businesses. Overall, this rule has few adverse impacts on small business.
This rule may have some adverse effects on some small businesses (especially bait dealers that harvest emerald shiners from wild sources for sale as bait). If USDA finds that additional fish or bait fish species are susceptible to VHS, this rule may have a more dramatic impact on fish farm operators or bait dealers, or both. Many of the affected entities will be small businesses.
This rule is needed to protect the health of Wisconsin livestock industries, including the aquaculture and farm-raised deer industries. It is also needed to protect the health of wild animals, including fish. Effective disease control is important for all the people of the state, and for the affected livestock industries.
Although this rule may have some adverse effects on some small livestock businesses, those effects are generally minimal and are outweighed by the need to prevent and control the spread of serious diseases that could destroy entire industries. DATCP has not exempted small businesses, because the risk of disease spread is unrelated to business size.
Overall, this rule will benefit Wisconsin livestock industries by improving control of serious diseases. This rule will also increase flexibility and reduce costs for many individual businesses. This rule may have some adverse effects on some individual businesses, those effects are generally limited and are outweighed by the need to prevent and control the spread of serious diseases that could destroy entire industries.
Notice of Hearing
Commissioner of Insurance
NOTICE IS HEREBY GIVEN that pursuant to the authority granted under s.
601.41 (3), Stats., and the procedures set forth in under s.
227.18, Stats., OCI will hold a public hearing to consider the adoption of proposed rules affecting section
Ins 2.19, Wis. Adm. Code, relating to sales of life insurance and annuities to the military and affecting small business.
Hearing Information
Date: January 11, 2008
Time: 10:00 a.m., or as soon thereafter as the matter
may be reached
Place: OCI, Room 223
125 South Webster St. - 2nd Floor
Madison, WI
Submission of Written Comments
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date of the hearing.
Written comments can be mailed to:
Fred Nepple
Legal Unit - OCI Rule Comment for Rule Ins 2.19
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Fred Nepple
Legal Unit - OCI Rule Comment for Rule Ins 2.19
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
Fred Nepple
Comments submitted through the Wis. Adm. Rule Web site at http://adminrules. wisconsin.gov will be considered.
Copy of Rule
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@wisconsin.gov, (608) 264-8110, 125 South Webster Street – 2
nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
Statutes interpreted
Statutory authority
Explanation of agency authority
This proposed rule defines practices relating to the sale of life insurance and annuities to the military that are misleading and unfair trade practices. Accordingly it is authorized by s.
628.34, Stats, which prohibits and permits OCI to define unfair trade practices.
Related statutes or rules
Section
628.34, Stats., prohibits misrepresentation or unfair practices in the business of insurance. In addition ss.
Ins 2.14 to
2.17, Wis. Adm. Code, govern specific practices relating to the sales of annuities and life insurance.
Plain language analysis and summary of the proposed rule
Congress on September 29, 2006, enacted the Military Personnel Financial Services Protection Act, Pub. L. No. 109-290 (2006) (the “Federal Act"). Congress found it imperative that members of the United States Armed Forces be shielded from “abusive and misleading sales practices" and protected from certain life insurance products that are “improperly marketed as investment products, providing minimal death benefits in exchange for excessive premiums that are front-loaded in the first few years, making them entirely inappropriate for most military personnel."
The Federal Act asks that the “States collectively work with the Secretary of Defense to ensure implementation of appropriate standards to protect members of the Armed Forces from dishonest and predatory insurance sales practices while on a military installation." The Federal Act calls on the National Association of Insurance Commissioner (“NAIC") to, in coordination with the Secretary, create standards for products specifically designed to meet the particular needs of members of the Armed Forces, regardless of the sales location.
The NAIC developed the Military Sales Practices Model Regulation (“Model") to address the Federal Act request. The Model specifically prohibits certain acts and practices as false, misleading, deceptive or unfair under Wisconsin's unfair trade practices statute (s.
628.34, Stats.) Many of the provisions incorporate Department of Defense (“DoD") solicitation rules. For example by tracking DoD regulations the Model prohibits a practice of soliciting the sales of life insurance in barracks, day rooms and other restricted areas.
The Model also addresses Congressional concerns regarding suitability and product standards. In this regard, the Model prohibits recommending the purchase of any life insurance product which includes a “side fund" to junior enlisted service members in pay grades E- 4 and below, unless the insurer has reasonable grounds for believing that the life insurance portion of the product, standing alone, is suitable.
The proposed rule conforms to the recommended NAIC Model.
Comparison with federal regulations
See Plain language analysis. The Model tracks or incorporates relevant DoD solicitation regulations in DoD Instruction 1344.07: Personal Commercial Solicitation on DoD Installations, and Army Regulation 210-7: Commercial Solicitation on Army Installations. These regulations identify prohibited sales practices directed at active duty service members.
Comparison of rules in adjacent states
Illinois: The Illinois Insurance Department is currently in the process of promulgating the Model.
Iowa: The Iowa Insurance Department is currently in the process of promulgating the Model.
Michigan: The Michigan Insurance Department is currently in the process of promulgating the Model.
Minnesota: The Minnesota Insurance Department is currently in the process of promulgating the Model.
Summary of factual data and analytical methodologies
The proposed rule is based on a review of complaints, enforcement investigations conducted by other state insurance departments and the recommendations and analysis prepared and shared by the NAIC.
Analysis and supporting documentation used to determine rule's effect on small businesses
The proposed rule solely requires appropriate sales practices. As such it will not impose any additional costs relating to those practices. While use of appropriate life and annuity sales practices with active duty military is an important topic, such sales are not a material portion of insurance business in this state. This is confirmed by the few complaints OCI has received on the topic and also by DoD information that shows only a small number of active duty military personnel resident in Wisconsin.
Summary of effect on small business
This rule will have little or no effect on small businesses. It will not require bookkeeping procedures or professional skills beyond those currently required.
Agency Contact Person
Inger Williams, OCI Services Section, at:
Phone: (608) 264-8110
Address: 125 South Webster St – 2nd Floor
Madison WI 53703-3474
