Section
227.11 (2) (a), Stats., gives an agency rule-making authority to interpret the provisions of any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
N/A
Plain language analysis
2009 Wisconsin Act 28, the biennial budget bill, created a new competitive grant program under s.
115.745, Stats., appropriating $247,500 annually for a school board or cooperative educational service agency (CESA), in conjunction with a tribal education authority to apply to the department for a grant for the purpose of supporting innovative, effective instruction in one or more American Indian languages.
The proposed rule establishes criteria and procedures for awarding grants to eligible applicants. Rules must be in place as soon as possible to award grants in time for the upcoming school year. Therefore, emergency rules were promulgated effective December 15, 2009.
Comparison with federal regulations
N/A
Comparison with rules in adjacent states
Illinois, Iowa, Michigan, and Minnesota do not have rules relating to grants for tribal language revitalization.
Summary of factual data and analytical methodologies
Because
2009 Wisconsin Act 28 creating this grant program became effective June 30, 2009, the rule established an application deadline of January 29, 2010 to expedite the awarding of funds in 2009-10. In subsequent years, applications will be due March 1 to coincide with application timelines established for other grants awarded by the department.
Analysis and supporting documents used to determine effect on small business
N/A
Anticipated costs incurred by private sector
N/A
Small Business Impact
The proposed rules will have no significant economic impact on small businesses, as defined in s.
227.114 (1) (a), Stats.
Fiscal Estimate
Under s.
20.255 (2) (km), Stats.,
2009 Wisconsin Act 28, the biennial budget bill, appropriated $247,500 annually to create a new competitive grant program under s.
115.745, Stats. The grant program allows a school board or CESA in conjunction with a tribal education authority to apply to the department for a grant for the purpose of supporting innovative, effective instruction in one or more American Indian languages.
The rule establishes criteria and procedures for awarding these program grants. The rule, itself, will not increase local revenue. It is the school district's choice as to whether it will apply for a grant and implement an American Indian language program.
The costs associated with administering this grant program will be absorbed by the department.
Agency Contact Person
JP Leary
American Indian Studies Program Consultant
(608) 267-2283
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to s.
342.245 (3) and
(4), Stats., the Department of Transportation will hold a public hearing to consider the creation of Chapter
Trans 148, Wis. Adm. Code, relating to electronic recording and release of liens by non-individual creditors.
Hearing Information
Date and Time
|
Location
|
January 29, 2010
|
Hill Farms State Transportation
Building
|
11:00 a.m.
|
Room 144-B
|
|
4802 Sheboygan Avenue
|
|
Madison, WI
|
An interpreter for the hearing impaired will be available on request for this hearing. Parking for persons with disabilities and an accessible entrance are available.
Copies of Proposed Rule
A copy of the rule may be obtained upon request from Carson Frazier, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7911, Madison, WI 53707-7911. You may also contact Ms. Frazier by phone at (608) 266-7857 or via e-mail:
carson.frazier@dot.state. wi.us.
Submission of Written Comments
The public record on this proposed rule making will be held open until close of business the day of the hearing 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 Carson Frazier, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7911, Madison, WI 53707-7911. You may also contact Ms. Frazier by phone at (608) 266-7857 or via e-mail:
carson.frazier@dot.state. wi.us.
Analysis Prepared by the Wisconsin Department of Transportation
Statutes interpreted
Statutory authority
Explanation of agency authority
Section
342.245 of the Wisconsin Statutes requires a secured party to use an electronic process prescribed by the Department of Transportation to file a security interest statement, and deliver a release of a security interest in a motor vehicle and to pay a fee for those actions. The Department may, by rule, exempt a person or a type of transaction from those requirements, except that any person who is exempted shall pay a fee to the department for processing applications and releases submitted by the person utilizing a process other than an electronic process. The statutes require the Department to promulgate rules to implement and administer these requirements. This rulemaking does that.
Related statute or rule
Plain language analysis
2009 Wis. Act 28 created s.
342.245, Stats., and amended related provisions, to require secured parties that are not individuals to file a security interest in a vehicle utilizing an electronic process prescribed by the Department. Act 28 also authorizes the Department to exempt a person or a type of transaction from that requirement. Act 28 requires the Department to promulgate administrative rules to implement and administer the statute.
In this rule making, the Department proposes policies and procedures to implement the requirement that non-individual secured parties file a security interest statement electronically. The Department uses as a model ch.
Trans 141, which requires licensed motor vehicle dealers to process title transactions using an electronic process prescribed by the Department.
Similar to policies established in ch.
Trans 141, the Department, in ch.
Trans 148, proposes to exempt from the requirement of electronic filing of security interest statement a secured party that has filed fewer than 49 security interest statements on Wisconsin motor vehicle titles during the previous calendar year. The proposed rule states that the Department may deny a secured party the authority to file and release security interest statements electronically based on the secured party's inadequate performance. As required by s.
342.245, Stats., and following the model of ch.
Trans 141, the Department proposes to charge a $5 fee per transaction for processing applications submitted by secured parties not required to process electronically, and the $5 fee and a $20 surcharge per transaction for processing applications submitted by secured parties not authorized to process electronically and by non-exempt secured parties that fail to comply with the law.
The Department proposes to exempt two types of transactions from the requirement that a secured party must file security interest statements electronically and, for these specifically exempted security interest transactions, the Department shall not charge a secured party a processing fee. First, if the security interest statement is being filed as part of a certificate of title transaction for a vehicle; and second, if the security interest statement is part of a transaction that is prohibited from successful electronic transaction because of an express limitation on the vehicle title or customer record, or on the e-MV Agent internet-based web application or APPS.
Comparison with federal regulations
No federal regulations govern the process covered in the proposed rule.
Comparison with rules in adjacent states
Michigan:
Michigan has no requirement, allowance, or means for a secured party to electronically file security interest statements.
Minnesota:
Minnesota has no requirement or allowance for a secured party to electronically file security interest statements. Minnesota at one time had such a pilot program; however, Minnesota has discontinued this practice.
Illinois:
Illinois has no requirement, allowance, or means for a secured party to electronically file security interest statements.
Iowa:
Iowa has no requirement, allowance, or means for a secured party to electronically file security interest statements.
Summary of factual data and analytical methodologies
Since 2007, all licensed motor vehicle dealers are required to process title and registration transactions. This law is implemented in chs.
Trans 141 and
Trans 156.
While financial institutions affected by ch.
Trans 148 are of course different from motor vehicle dealers, many of the issues involved in electronically processing transactions and updating the DMV database are the same. For example, all transactions are subject to the same federal and state privacy laws and DMV security procedures. All transactions utilize the same methods of payment to DMV.
Therefore, the Department uses chs.
Trans 141 and
Trans 156 as a basis for ch.
Trans 148, with changes as needed to address the different needs of secured parties.
Analysis and supporting documents used to determine effect on small businesses
The Department has analyzed the number of security interests listed on motor vehicle titles, by non-individual secured party, for calendar year 2008. There are more than 15,700 different secured parties that have current liens listed on motor vehicle titles.
The Department then excluded from the count security interests that were added as part of a title transaction (generally, a vehicle purchase in which the buyer obtained a loan). Of the total 15,700 secured parties, only about 2,080 secured parties listed security interests that are not part of a title transaction. Of the 2,080, only 433 secured parties listed 50 or more security interests, not part of a title transaction, in 2008. The 433 secured parties that listed 50 or more security interests are responsible for a total of 95,489 security interests not part of a title transaction. This is 88% of all security interests that are not part of a title transaction listed in calendar year 2008. The remaining 1,647 secured parties listed only 13,311 security interests not part of a title transaction, or 12% of all non-title security interests listed in 2008.
Therefore, the Department has concluded that a cut-off of 48 or fewer non-title transactions is a reasonable number. This number is the same number of sales which exempt a motor vehicle dealer from requirements under ch.
Trans 141, making program administration and communication with DMV's business partners easier while, at the same time, this number captures a very large share of the security interest filing volume.
In this proposed rule, the Department proposes the exemption cut-off at 48 or fewer non-title security interests listed during the previous calendar year.
Small Business Impact
Most non-individual secured parties are financial institutions, located in and outside Wisconsin. Virtually all financial institutions maintain their records in electronic format and possess computers and access to the Internet. On the other hand, the Department recognizes that some small businesses do not possess this capability.
While there is not a direct connection between the size of the business and the amount of business done with the Department, the Department believes that this is an adequate measure of a small business for which it may be difficult to purchase necessary hardware and software, or to hire sufficient staff to manage electronic security interest statement filing. Therefore, the proposed rule exempts secured parties that have filed 48 or fewer security interest statements in motor vehicles during the previous calendar year.
Small Business Regulatory Coordinator
Fiscal Estimate
The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands.
The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.
Agency Contact Person
Carson Frazier
Dept. of Transportation — Bureau of Vehicle Services
Room 253, P. O. Box 7911
Madison, WI 53707-7911
Phone : (608) 266-7857
Notice of Hearing
Workforce Development
