DEPARTMENT OF HEALTH SERVICES
TO ADOPT PERMANENT RULES
The Wisconsin Department of Health Services proposes an order to create ch. DHS150, relating to grants for workplace wellness programs, and relating to small businesses. RULE SUMMARY
Statute interpreted
See the “Statutory authority” section.
Statutory authority
Explanation of agency authority
Section 227.11 (2) (a) reads: Rule-making authority is expressly conferred on an agency as follows: (a) Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation. All of the following apply to the promulgation of a rule interpreting the provisions of a statute enforced or administered by an agency:
1. A statutory or nonstatutory provision containing a statement or declaration of legislative intent, purpose, findings, or policy does not confer rule-making authority on the agency or augment the agency's rule-making authority beyond the rule-making authority that is explicitly conferred on the agency by the legislature.
2. A statutory provision describing the agency's general powers or duties does not confer rule-making authority on the agency or augment the agency's rule-making authority beyond the rule-making authority that is explicitly conferred on the agency by the legislature.
3. A statutory provision containing a specific standard, requirement, or threshold does not confer on the agency the authority to promulgate, enforce, or administer a rule that contains a standard, requirement, or threshold that is more restrictive than the standard, requirement, or threshold contained in the statutory provision.
(2) WORKPLACE WELLNESS PROGRAM GRANTS. Subject to the limitations provided under sub. (3) and after the department's approval of the application, from the appropriation account under s. 20.435 (1) (bn), the department shall award a grant to each applicant who provides a workplace wellness program to any of the applicant's employees who are employed at a small business in this state in an amount not to exceed 30 percent of the amount that the applicant paid during the year to provide such a program, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property. (3) LIMITATIONS. The maximum amount of the grants that may be awarded to all applicants in any fiscal year is $3,000,000. No applicant may be awarded a grant under this section for a workplace wellness program in existence before March 15, 2014. No applicant may be awarded more than one grant under this section. No grants may be awarded under this section after December 31, 2018.
(4) ADMINISTRATION. A person wishing to receive a grant under this section shall apply for a grant in the manner prescribed by the department. An applicant shall include with the application an itemized list of the applicant's expenditures for providing a workplace wellness program. The department shall promulgate rules to administer this section.
Related statute or rule
Plain language analysis
Section 250.21, Stats., requires the department to award to businesses with 50 or fewer employees, one time grants for up to 30% of the costs, excluding amounts paid to acquire, construct, rehabilitate, remodel, or repair real property, paid during the year, to provide for its employees, a workplace wellness program defined under s. 250.21 (1) (c), Stats., as a health or fitness program that includes health risk assessments and one or more of the following programs or services: • Chronic disease prevention.
• Worker injury prevention programs.
• Health screenings.
• Nutrition education.
• Health or fitness incentive programs.
• Vaccinations.
• Employee physical examinations.
The legislature under s. 250.21 (3), Stats., provides that the maximum amount that the department award to all applicants in any fiscal year is $3,000,000. Section 250.21 (3), Stats., further provides that the department may not award grants for workplace wellness programs in existence before March 15, 2014, and sunsets grant disbursements on December 31, 2018. The department is required under s. 250.21, (4), Stats., to establish rules to administer workplace wellness program grants. The department proposes to establish, by rule, an application process and application review criteria. The department proposes to grant an award of 30% or $15,000 whichever is less, of allowable costs to applicants with complete applications for costs, except excluded costs, paid by the small business in any 12-month period, within the grant funding period, as that phrase is defined in proposed s. DHS 150.02 (5). Grants may be awarded for expenses in the following categories: 1. Personnel/Staff Time
2. Health risk assessment
3. Education programs
4. Behavior change programs (campaigns, challenges, etc.)
5. Equipment
6. Incentives (cash, prizes, etc.)
7. Contracted services
Normal costs for a comprehensive workplace wellness program average about $300 per employee. Based on that figure, an employer with the maximum 50 employees would generate costs of $15,000. With potential higher costs for personnel, contractual services and purchasing of equipment, the department is setting a maximum award for a single application at $15,000.
If the $3,000,000 appropriation account under s. 20.435 (1) (bn), Stats., is depleted in a state fiscal year before all of the applicants are fully paid, the department proposes to put the applicants in the queue for payment in the next state fiscal year. If any application for a grant is not fully paid in a state fiscal year because the amount of the grant to be issued would be greater than the remaining funds in that state fiscal year, the department will pay the balance of the grant from the appropriation of the following state fiscal year. In the final year of the grant funding period, applications must be received by October 31, 2018 in order to be reimbursed before the grant funding period ends on December 31, 2018. Summary of, and comparison with, existing or proposed federal regulations
There appear to be no existing or proposed federal regulations that address the activities to be regulated by the rules.
Comparison with rules in adjacent states
Illinois:
There appears to be no existing or proposed regulations in Illinois that address the activities to be regulated by the proposed rules.
Iowa:
There appears to be no existing or proposed regulations in Iowa that address the activities to be regulated by the proposed rules.
Michigan:
There appears to be no existing or proposed regulations in Michigan that address the activities to be regulated by the proposed rules.
Minnesota:
There appears to be no existing or proposed regulations in Minnesota that address the activities to be regulated by the proposed rules.
Summary of factual data and analytical methodologies
The department formed an advisory committee to help develop the proposed rules. The committee included: one or more representatives from the Wisconsin Manufacturers and Commerce, Wisconsin – National Federation of Independent Business, Wellness Council of Wisconsin, local health departments, Eau Claire Chamber of Commerce, American Heart Association, YMCA, and M3 Insurance. The committee met three times and recommended the content contained in the rules and the related application form. The committee used the knowledge of the group to comply with the law in s. 250.21, Stats., and to make the process easy for small businesses, as defined in s. 250.21 (1), (b), Stats., to apply. The committee reviewed other state rules and processes and used an example from Massachusetts as a starting point to help draft the department’s application form.
