Madison WI 53703-3474
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.
Copies of Proposed 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 fo the Commissioner of Insurance (OCI)
Statute(s) interpreted
Statutory authority
Explanation of agency authority
2009 Wisconsin Act 344 created s.
632.69, Stats., replacing Wisconsin's viatical settlement statute with comprehensive regulation of life settlement transactions. The statute replaces licensing requirements for brokers and providers and establishes pre-licensing and continuing education standards. The statute provides the commissioner with authority to adopt rules implementing and administering the law including appropriate licensing requirements and standards for continuing licensure for providers and brokers, financial accountability for providers and brokers, and the adoption of rules governing the relationship and responsibilities of insurers, providers and brokers during settlement of a life insurance policy.
Related statute(s) or rule(s)
See the statutes interpreted in paragraph 1, above.
Plain language analysis
The proposed rule will assist in implementation of the requirements of s.
632.69, Stat. including those provisions relating to licensure, training, disclosures, reporting, examinations and conduct of licensees. The proposed rule sets forth initial and renewal license application deadlines, fees and requirements, including financial accountability, training, and information to be submitted. The rule lists criteria that may be used in assessing qualification of an applicant for licensure. The proposed rule provides for notification to the commissioner of administrative actions, criminal proceedings and lawsuits that may affect licensure, and reporting of cessation of business activity or change of business address or location of business records. The proposed rule provides detail for fulfilling the form filing and approval requirements of s.
632.69 (5), Stat. as well as providing formats for notices to policyholders, owners and purchasers. The proposed rule incorporates license application forms in to ch.
Ins 7, Wis. Adm. Code, and add certain categories of approved training to s.
Ins 28.06, Wis. Adm. Code.
Summary of, and comparison with, existing or proposed federal regulations
There are no federal regulations which are intended to address life settlement activities to be regulated by the proposed rule.
Comparison with rules in adjacent states
Illinois:
215 ILCS 159/1, et. Seq., effective 7/01/2010, amended Illinois viatical settlement law. To date there has been no formal adoption of language similar to the proposed rule.
Iowa:
IAC 191-48, effective 4/03/2009, contains provisions for viatical and life settlements comparable to the proposed rule.
Michigan:
Michigan General Insurance Laws, Chapter
550 contains viatical settlement contract regulations. To date there has been no formal adoption of language similar to the proposed rule.
Minnesota:
Minnesota Laws, Chapter 60A.957, et. Seq., effective 8/01/2009, contains viatical settlement contract regulations. To date there has been no formal adoption of language similar to the proposed rule.
Summary of factual data and analytical methodologies
The proposed rule is based upon reference to a model regulation and analysis of the proposed provisions by a working group consisting of representatives of the insurance industry, the life settlement industry, an institutional investment group, life insurance agents, regulators and consumer and senior interest associations. The proposed rule will address regulatory needs of the expanding life settlement industry, add procedures for administrative oversight of licensees operating within the state and provide important disclosures to consumers.
Analysis and supporting documents used to determine effect on small business
The proposed rule continues, and expands existing licensing, reporting and disclosure requirements relating to viatical settlements and life settlements. The rule should have little effect on small businesses.
Effect on Small Business
This rule will have little or no effect on small businesses.
Initial regulatory flexibility analysis
Notice is hereby further given that pursuant to s.
227.114, Stats., the proposed rule may have an effect on small businesses. The initial regulatory flexibility analysis is as follows:
a. Types of small businesses affected:
Insurance agents, Small Agencies
b. Description of reporting and bookkeeping procedures required:
None beyond those currently required.
c. Description of professional skills required:
None beyond those currently required.
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@wisconsin.gov.
Fiscal Estimate
There will be no state or local government fiscal effect.
Private sector fiscal analysis
This rule will have no significant effect on the private sector regulated by OCI.
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
Mail: PO Box 7873, Madison, WI 53707-7873
Notice of Hearing
Public Service Commission
(PSC # 1-AC-234)
NOTICE IS GIVEN that pursuant to section
227.16 (2) (b), Stats., the commission will hold a public hearing on proposed revisions to Chapter
PSC 118, relating to renewable resource credits.
Hearing Information
Date and Time:
|
Location:
|
February 15, 2011
Tuesday
9:30am-11:30am
|
Public Service Commission
610 North Whitney Way
Madison, WI 53705
|
This building is accessible to people in wheelchairs through the Whitney Way (lobby) entrance. Handicapped parking is available on the south side of the building.
The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact the Docket Coordinator, as indicated in the previous paragraph, as soon as possible.
Submittal of Written Comments
Any person may submit written comments on these proposed rules. The hearing record will be open for written comments from the public, effective immediately, and until March 1, 2011, at noon (February 28, 2011, at noon, if filed by fax). All written comments must include a reference on the filing to docket 1-AC-234. File by one mode only.
Industry:
File comments using the Electronic Regulatory Filing system. This may be accessed from the commission's website,
www.psc.wi.gov.
Members of the Public:
If filing electronically: Use the Public Comments system or the Electronic Regulatory Filing system. Both of these may be accessed from the commission's website,
www.psc.wi.gov.
If filing by mail, courier, or hand delivery: Address as shown in the box below.
If filing by fax: Send fax comments to (608) 266-3957. Fax filing cover sheet MUST state “Official Filing," the docket number 1-AC-234, and the number of pages (limited to 25 pages for fax comments).
Analysis Prepared by the Public Service Commission
Agency authority and explanation of agency authority
This rule is authorized under ss.
196.02 (1) and
(3),
196.378 (3 ) (a) 1., and 196.378 (3) (a) 1m., and 227.11, Stats.
Section
227.11, Stats., authorizes agencies to promulgate administrative rules. Section196.02 (1), Stats., authorizes the commission to do all things necessary and convenient to its jurisdiction. Section
196.02 (3), Stats., grants the commission specific authority to promulgate rules. Section
196.378 (3) (a) 1., Stats., grants the commission specific authority to promulgate rules that establish requirements for the creation and use of a renewable resource credit on or after January 1, 2004. Section
196.378 (3) (a) 1m., Stats., grants the commission specific authority to promulgate rules that allow an electric provider to create a renewable resource credit based on use in a year by the electric provider, or a customer or member of the electric provider.
Statutes interpreted
This rule interprets ss.
196.378 (1) (h) 1. h. to
j. and
(i) and
(3) (a) 1. and
1m. and
(c), Stats. These statutes deal with the creation, sale, calculation and tracking of renewable resource credits, and specify the manner for aggregating or allocating renewable resource credits.
Related statute(s) or rule(s)
Section
196.374, Stats., defines the term “renewable resource," and deals with energy efficiency and renewable resource programs. Section
196.377, Stats., deals with the promotion of renewable energy sources. Section
196.378, Stats., provides definitions for certain renewable resources that are included in this rule.
Brief summary of rule
2009 Wisconsin Act 406 establishes statewide criteria for the creation of renewable resource credits (RRCs) by electric providers, and the inclusion of certain resources that generate electric power from certain fuel, synthetic gas, or densified fuel pellets in the renewable portfolio standard.
This rule creates definitions for biogas, displaced conventional electricity, non-electric facility, pyrolysis, solar light pipe, solar water heater and synthetic gas, and refines existing definitions to prevent ambiguity. This rule also describes when certain RRCs are considered created and used, and which facilities are eligible for creating RRCs, even in instances where the RRC is created from a renewable resource not produced on site.
Under this rule, an RRC may be created by the displacement of conventional electricity caused by the use of a non-electric facility under certain circumstances. For example, a building with solar light pipes, i.e., a non-electric facility as defined by this rule, displaces conventional electricity and this displacement creates an RRC that can be used by the electric provider or by a customer or member of the electric provider. This rule provides greater detail describing when and how this can be done.
Displaced conventional electricity is calculated by taking the annual average mix of resources used to generate electricity in the entire area served by the Midwest Independent Transmission System Operator. Alternatively, displaced conventional electricity may be calculated by establishing a different percentage for a specific type of non-electric facility if its seasonal or diurnal operating characteristics justify a percentage that differs from the annual average percentage. Electric providers or users of a non-electric facility must determine the net amount of electricity displaced by using methodologies outlined under proposed Wis. Admin. Code §
118.09 (3) (a).
Lastly, this rule provides a procedure for the certification and registration of renewable and non-electric facilities that can issue an RRC; a means of tracking RRCs that have been created, retired or expired; and permits the aggregation and allocation of RRCs by wholesale suppliers.
Comparison with existing or proposed federal regulations
No federal renewable portfolio standard (RPS) exists at this time. Several legislative proposals to establish a federal “renewable electricity standard" have been submitted within the last year. Two have been referred to the Committee on Energy and Natural Resources and the third has been placed on the Senate Legislative Calendar under General Orders (Calendar No. 576).
Two of the three federal legislative proposals establish a minimum annual percentage of the base quantity of electricity that an electric utility sells to electric consumers; one proposal calls for a minimum of 15% by 2021 and the other calls for a minimum of 25% by 2025. The third proposal does not specify a minimum annual percentage to be achieved. The proposed federal regulations include many of the same kinds of renewable resources as does this rule, e.g., biogas, biomass, solar, and wind.
