Summary of factual data and analytical methodologies
1. The 1997 Economic Census – Wisconsin Geographic Series, which is compiled by the U.S. census bureau every 5 years for each year ending in “2" and “7" and is the latest available economic data compiled on businesses located in Wisconsin.
2. Criteria adopted by the Department and approved by the Wisconsin Small Business Regulatory Review Board to determine whether the Department's proposed rules have a significant economic impact on a substantial number of small businesses. Pursuant to the Department's criteria, a proposed rule will have a significant economic impact on a substantial number of small businesses if at least 10% of the businesses affected by the proposed rules are small businesses and if operating expenditures, including annualized capital expenditures, increase by more than the prior year's consumer price index or reduces revenues by more than the prior year's consumer price index. For the purposes of this rulemaking, 2006 is the index year. The consumer price index is compiled by the U.S. Department of Labor, Bureau of Labor Statistics and for 2006 is 3.2%.
3. The Department's WIC vendor and vendor redemption records. Each vendor is placed in a vendor peer group according to the number of cash registers, a valid indicator for the size of store. Small stores are those with 4 or less registers and would be considered a small store.
4. The Wisconsin WIC Program Advisory Committee's Retailer Sub-committee that includes the Wisconsin Grocers Association and retailers representing large and small grocery stores and pharmacies, reviewed and commented on the draft rule.
Initial Regulatory Flexibility Analysis
The Wisconsin WIC Program assigns each vendor (grocery store and pharmacy) to a vendor peer group based on the number of cash registers, a criteria that has been validated as an accurate indicator of the store size. As of July 2007, peer group 1 consisted of 433 grocery stores with 1-4 cash registers, i.e., a small store. The total redemption of the 433 grocery stores in Peer Group 1 for the month of July 2007 was $1,567,237, compared to $1,409,331 for the 222 grocery stores in Peer Group 2 (5-10 registers), and $3,465,249 for the 232 grocery stores in Peer Group 3 (11 or more registers).
All 165 WIC pharmacies are placed in Peer Group 9, regardless of the number of registers, with a July 2007 total redemption of $224,150.
All 9 above-50-percent vendors are placed in Peer Group 7. An above-50-percent vendor is an authorized vendor who derives more than 50 percent of annual food sales revenue from WIC checks or a vendor applicant for initial authorization who estimate they will derive more than 50 percent of annual food sales revenue from WIC checks. There are 6 small stores and 1 pharmacy in the above-50-percent Peer Group. Total redemption for July 2007 was $108,450.
The proposed rules will affect small businesses, however, the proposed rules will not have a significant economic impact on the small businesses that are compliant with this rule. Small stores that do not currently maintain regular established hours of operation may have to increase the time open to at least five days a week for a minimum of two four-hour blocks of time. This requirement may result in an increase in sales that would off-set any increase in costs. The rules codify vendor contract requirements for stores and pharmacies to maintain inventory and accounting records as required under the vendor contract, and to report store prices to the Department. These are not new requirements. No professional skills are required to comply with the rules.
The WIC Program is entirely federally funded. No state funding is used for administrative expenses or for food purchases. It is not anticipated that federal food expenditures will be increased as a result of this rule; in fact, food expenditures should be less when the rule is in place. There would be tighter pricing requirements for above-50-percent vendors, and stronger sanctions for fraud and abuse, including recoupments as a result of overcharging for WIC foods.
Small business regulatory coordinator
Fiscal Impact
The WIC program is entirely federally funded. No state funding is used for administrative expenses or for food purchases. It is not anticipated that federal food expenditures will be increased as a result of this rule; in fact, food expenditures should be less when the rule is in place. There would be tighter pricing requirements for above-50-percent vendors and stronger sanctions for fraud and abuse, including recoupment of overcharging for WIC foods.
There would be an indeterminate state fiscal impact as a result of the expansion of sanctions, but it is anticipated that WIC would increase its existing administration revenues as a result of imposing an enforcement assessment with each recoupment.
There will be no local government impact as a result of this rule. All of the provisions related to vendor sanctions are conducted by the state WIC office and monitoring requirements for the local projects have not changed. Provisions related to participant fraud and abuse are either unchanged from previous policy or lessened; for example, follow-up for participant repayment is now limited to two letters, with additional follow-up to be conducted by the state WIC office if needed.
Copy of Rule
A copy of the full text of the rules and the fiscal estimate can be obtained at no charge from the Wisconsin Administrative Rules Website at
http://adminrules.wisconsin.gov or by contacting the person listed below.
Contact Person
Patti Herrick
WIC Program Director
Room 243, 1 West Wilson Street
Madison, WI 53701
Phone: 608-266-3821
Fax: 608-266-3125
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss.
110.06,
110.20 (9), and
227.11, Stats., interpreting s.
110.20, Stats., the Department of Transportation will hold a public hearing on
February 4, 2008 at the Hill Farms State Transportation Building,
Room 144-B, 4802 Sheboygan Avenue, Madison, WI, at
1:00 PM, to consider the amendment of ch.
Trans 131, Wisconsin Administrative Code, relating to the vehicle emission inspection program.
Parking for persons with disabilities and an accessible entrance are available.
Copy of Rule
A copy of the proposed rule may be obtained upon request from Steve Hirshfeld, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7909, Madison, WI 53707-7909. You may also contact Steve Hirshfeld by phone at (608) 266-2267 or via e-mail:
stephen.hirshfeld@dot.state.wi.us.
Analysis Prepared by the Department of Transportation
Statutes interpreted
Statutory authority
Explanation of agency authority
The Wisconsin Department of Transportation (WisDOT) is required to provide an emissions inspections program nonexempt vehicles customarily kept in a number of counties in Wisconsin. WisDOT is required to promulgate rules specifying procedures for inspection of vehicles, including the method of measuring emissions and the types of equipment which may be used in such measurement. The procedures and methods used must be capable of being correlated with procedures established under federal law.
Related statutes or rules
Plain language analysis
This rule amendment conforms ch.
Trans 131 to statutory changes in the vehicle inspection and maintenance program, enacted in
2007 Wis. Act 20. The program is changed to:
• Eliminate emission inspection of vehicles model year 1995 and earlier (previously, vehicles model year 1968 and newer required testing).
• Add emission inspection of vehicles model year 2007 and later up to 14,000 lbs. gross vehicle weight rating while limiting vehicles model year 2006 and earlier to 8,500 lbs gross vehicle weight rating (previously, all vehicles up to 10,000 lbs had required testing).
• Add emission inspection of vehicles model year 2007 and later that are powered by diesel fuel.
• Allow the Department to establish methods for emission testing, and delivery of testing services in addition to the previously established method of a single contractor under contract to the Department.
In this proposed rule, the Department establishes as the testing method the second-generation on-board diagnostic test (OBD II), and establishes as the service delivery method a possibility of multiple contractors who perform the test at their own facilities, or by subcontracted testing at subcontractors' facilities, or at self-service facilities where a vehicle owner may test the vehicle; and transmission of test results and repair information to the Department electronically in a format specified by the Department.
This proposed rule eliminates the previously-established idle and transient tailpipe testing methods, and the emission equipment inspection, leaving only the OBD II method. This amendment repeals references in the rule related to these now eliminated testing methods.
In addition, this proposed rule eliminates the evaporative emission test (“gas cap test"), which was previously required but is no longer necessary with OBD II technology.
The proposed rule clarifies that to obtain a waiver of compliance on the basis of statutory repair cost limit, the vehicle must pass a waiver emission equipment inspection.
Under law, emission testing is required based on where a vehicle is customarily kept, as stated by the vehicle owner or lessee. This proposed rule makes clear that the Department may determine whether a vehicle domicile as stated is consistent with the vehicle owner or lessee address or other information. The purpose is to deter statement that the vehicle is not customarily kept in the emission area in order to avoid the emission test requirement.
Summary of, and comparison with, existing or proposed federal regulations
The vehicle emission inspection and maintenance program exists to comply with federal law and regulations under the Clean Air Act and amendments. The Wisconsin Department of Natural Resources (DNR) has established the inspection and maintenance program as one of several measures to reduce air pollution. DNR has received approval from the federal Environmental Protection Agency (USEPA) for all Wisconsin's air pollution reduction measures. The program change enacted in
2007 Wisconsin Act 20 and in this rule amendment has been approved by USEPA, and this proposed rule conforms to federal regulations.
Comparison with rules in adjacent states
Michigan: Michigan has no vehicle inspection and maintenance program, and consequently no rules addressing such.
Minnesota: Minnesota has no vehicle inspection and maintenance program, and consequently no rules addressing such. State rules prohibit motorists from:
• Permitting vehicles to emit visible air contaminants for more than 10 consecutive seconds (non-diesel cycle engines) or more than 20 consecutive seconds (diesel cycle engines), and
• Removing, altering, or otherwise rending inoperative any vehicle air pollution control system.
Illinois: Emissions testing is prescribed under the Illinois Vehicle Emissions Inspection Law [625 Illinois Compiled Statutes 5/13C (2005)]. The Inspection Law requires biennial inspection of 1996 and newer model year light-duty vehicles, light-duty trucks, and heavy-duty vehicles. Diesel-powered vehicles, motorcycles and other specified vehicle/registration types are exempt from inspection. Vehicles do not require inspection until they are four model years old.
Per the Inspection Law, the emissions test(s) to be performed on each vehicle consists of one of the following alternatives:
1. On-board diagnostics test.
2. Idle exhaust and gas cap pressure test.
The former applies to all OBD II-equipped vehicles; the latter to remaining testable vehicles.
Iowa: Iowa has no vehicle inspection and maintenance program, and consequently no rules addressing such.
Summary of factual data and analytical methodologies
The program change enacted in
2007 Wis. Act 20 and in this proposed rule results from a joint study by the Wisconsin DNR and DOT. The agencies studied the age of the Wisconsin vehicle fleet, the existence and efficacy of OBD II technology on vehicles, and the costs and benefits of various methods of emission testing. The agencies concluded that sufficient numbers of newer model year vehicles, equipped with OBD II technology, now exist in the vehicle fleet that it is cost-effective to eliminate testing of older vehicles and eliminate tailpipe testing, and the overall air pollution reduction level is maintained.
Analysis and supporting documentation used to determine effect on small businesses
In establishing the new emission program design, DOT and DNR studied the age of the Wisconsin vehicle fleet. The agencies have determined that most vehicles in the fleet are within the 1996-current model year range, and that older vehicles have largely been removed from the fleet. The likelihood is that small businesses own newer vehicles, equipped with OBD II technology. As a result, while more vehicles are made subject to emission testing under the new law, the cost per vehicle to comply should be reduced. To the extent that small businesses still own older vehicles, those vehicles are no longer subject to testing and repair.
Effect on small business
Section
285.30, Stats., as amended by
2007 Wis. Act 20, eliminates the testing requirement for vehicles model year before 1996. To the extent that small businesses own older vehicles, the law eliminates the need for those vehicles to be tested. The law also requires diesel-powered vehicles of model year 2007 and newer, and vehicles model year 2007 and newer up to 14,000 lbs gross vehicle weight rating to undergo OBD II emission testing. On the other hand, these vehicles are manufactured with OBD II equipment and software, and maintaining the vehicles' emission systems is a reasonable expectation, and thus not unduly burdensome. The statute provides for enforcement of emission testing through vehicle registration denial. The Department's Regulatory Review Coordinator may be contacted by e-mail at
ralph.sanders@dot.state.wi.us, or by calling (414) 438-4585.
Fiscal effect
Section
285.30, Stats., as amended by
2007 Wis. Act 20, eliminates the testing requirement for vehicles model year before 1996. To the extent that local governments own older vehicles, the law eliminates the need for those vehicles to be tested and repaired. The law also requires diesel-powered vehicles of model year 2007 and newer, and vehicles model year 2007 and newer up to 14,000 lbs gross vehicle weight rating to undergo OBD II emission testing. On the other hand, these vehicles are manufactured with OBD II equipment and software, and maintaining the vehicles' emission systems is a reasonable expectation, and thus not unduly burdensome. The statute provides for enforcement of emission testing through vehicle registration denial.
Anticipated costs incurred by private sector
Section
285.30, Stats., as amended by
2007 Wis. Act 20, eliminates the testing requirement for vehicles model year before 1996. To the extent that state or private sector entities own older vehicles, the law eliminates the need for those vehicles to be tested and repaired. The law also requires diesel-powered vehicles of model year 2007 and newer, and vehicles model year 2007 and newer up to 14,000 lbs gross vehicle weight rating to undergo OBD II emission testing. On the other hand, these vehicles are manufactured with OBD II equipment and software, and maintaining the vehicles' emission systems is a reasonable expectation, and thus not unduly burdensome. The statute provides for enforcement of emission testing through vehicle registration denial.
Agency contact person and place where comments are to be submitted and deadline for submission
The public record on this proposed rule making will be held open until close of business the day of the hearing, 2007, to permit the submission of comments in lieu of public hearing testimony or comments supplementing testimony offered at the hearing. Any such comments should be submitted to Steve Hirshfeld, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7909, Madison, WI 53707-7909. You may also contact Steve Hirshfeld by phone at (608) 266-2267 or via e-mail:
stephen.hirshfeld@dot.state.wi.us.
