Section 1 updates the language in the rule to reflect the statutory changes in the language and citations resulting from
2005 Wisconsin Act 344. “Secured correctional facility" was changed to “juvenile correctional facility" and “secure detention facility" was changed to “juvenile detention facility." As a result of these changes, the statutory citations were amended to reflect their new position in the alphabet in s. 938.02, Stats. In addition,
2005 Wisconsin Act 344 repealed s. 938.02 (15p), Stats.
Section 2 repeals the note which followed s.
Phar 7.04 (1) (e) 2. advising the public of the changes. The note is no longer necessary due to the updating of this rule.
Summary of, and comparison with, existing or proposed federal regulation
None.
Comparison with rules in adjacent states
Illinois: In Illinois's section relating to the return of drugs, it does not address correction facilities separately.
Iowa: In Iowa's section relating to the return or exchange of health items, it does not address correction facilities separately.
Michigan: In Michigan's section relating to return or exchange of health items, there is a definition for “state correctional facility" which means a facility or institution that houses a prisoner population under the jurisdiction of the department of corrections.
Minnesota: In Minnesota's section relating to return of drugs and devices, such a return is only allowed by hospitals, nursing homes, and assisted living facilities.
Summary of factual data and analytical methodologies
On June 26, 2012, the Governor's Office recommended that the Pharmacy Examining Board review and update this rule to reflect current statutes.
Currently there is a note indicating the changes. This rule moves the updates from the note into the rule itself to reflect the statutory language change.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis
This rule was posted for economic comments for 14 days and none were received. This rule corrects statutory references only and has no economic impact.
Fiscal estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Initial Regulatory Flexibility Analysis or Summary
There is no effect on small business as defined under s.
227.114 (1), Stats.
Agency Contact Person
Sharon Henes, Administrative Rules Coordinator
Department of Safety and Professional Services, Division of Policy Development
1400 East Washington Avenue, Room 151
P.O. Box 8935
Madison, WI 53708
Telephone: 608-261-2377; e
Email:
sharon.henes@wisconsin.gov
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
|
X Original
⍽ Updated
⍽ Corrected
|
2. Administrative Rule Chapter, Title and Number
|
Section Phar 7.04 (1) (e) 2.
|
3. Subject
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Statutory reference changes within return or exchange of health items.
|
4. Fund Sources Affected
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5. Chapter 20, Stats. Appropriations Affected
|
⍽ GPR
⍽ FED X PRO ⍽ PRS
⍽ SEG ⍽ SEG-S
|
|
6. Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Cost
|
7. The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
|
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes
X No
|
9. Policy Problem Addressed by the Rule
|
Currently there is a note for this section indicating various statutory references have been changed. This rule updates the section with current statutory references and eliminates the note.
|
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
|
This rule was posted for 14 days for economic comments and none were received.
|
11. Identify the local governmental units that participated in the development of this EIA.
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None. This rule does not affect local governments.
|
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
This rule will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units, or the state's economy as a whole. This rule only corrects statutory references in the current rule.
|
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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The benefit is to clean-up the rule to match current statutory references.
|
14. Long Range Implications of Implementing the Rule
|
The long range implication is the rule will have clarity without having to refer to the note to understand the references.
|
15. Compare With Approaches Being Used by Federal Government
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None.
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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This rule purely updates the rule to reflect the current Wisconsin statute references. A comparison of the underlying rule which is not changing, Illinois and Iowa do not address correction facilities separately; Michigan's section relating to return or exchange of health items has a definition for “state correctional facility"; and Minnesota only allows the return of drugs and devices by hospitals, nursing homes and assisted living facilities.
|
17. Contact Name
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18. Contact Phone Number
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Sharon Henes, Administrative Rules Coordinator
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(608) 261-2377
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This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearing
Safety and Professional Services —
Real Estate Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Real Estate Examining Board in ss.
15.405 (11),
227.11 (2),
452.07 (1m), and
452.07, Stats., and interpreting ss.
452.07 (1m), and
452.07, Stats., the Board will hold a public hearing at the time and place indicated below to consider an order to repeal ss.
REEB 18.08,
18.11 (2), and
18.12 and Note; renumber and amend s.
REEB 18.11 (1) as s.
REEB 18.11 (intro.); amend ss.
REEB 18.01 (title),
18.02 (5) (intro.) and
(a) and
(b) and
(6) (intro.) and
(a) to
(g),
18.031 (1) (intro.),
(a), and
(b),
18.033 (title) and
(2),
18.035 (2),
18.037 (intro.) and Note, 18.06, 18.09 (1) (intro.) and (a) to (f), and 18.13 (1) (intro.), (a) to (d), (2) to (4), and (6) (e); repeal and recreate ss.
REEB 18.02 (1) and
18.10; and create ss.
REEB 18.02 (intro.) (Note), (1e) and Note, and (4) and Note, 18.034 (1) (title) and 18.10, relating to real estate trust accounts.
Hearing Information
Date: Thursday, October 31, 2013
Time: 10:00 a.m.
Locations: 1400 East Washington Ave.
(Enter through 55 N. Dickinson St.)
Room 121A
Madison, WI
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and arguments in writing as well. Facts, opinions, and arguments may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.
Place Where Comments are to be Submitted and Deadline for Submission
Comments may be submitted to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to
jean.maccubbiin@wisconsin.gov. Comments must be received at or before the public hearing to be held on
October 31, 2013, to be included in the record of rule-making proceedings.
Copies of Proposed Rule
Analysis prepared by the Department
Statutes interpreted
Statutory authority
Explanation of agency authority
Examining boards are generally authorized by ss.
15.08 (5) (b) and
227.11 (2) (a), Stats., to promulgate rules for its own guidance and for guidance within the profession and to promulgate rules interpreting any statute enforced or administered by it. Under ss.
452.07 (1m) and
452.07, Stats., the board shall promulgate rules for the guidance of the real estate profession.
Related statute or rule
Plain language analysis
This proposed rule-making order clarifies the rules relating to real estate trust accounts by correcting internal inconsistencies, reflecting current practices, and removing antiquated provisions. In addition, format changes and typographical/punctuation errors are being corrected.
SECTION 1: The proposed rules modify the section title to be consistent with section titles in other chapters within this series, chs.
REEB 11 to
26. For example, the statutory authority provided to the board is now separated from the definitions subsection.
SECTIONS 2 to 6: The proposed rules add or update definitions commonly used in the real estate industry. When applicable, the statutory definition is cited. In addition. the proposed rules update formatting now in use since the last chapter revision and use terms consistent with those used in ch.
452, Stats. As an example; in lists such as SECTION 6., s.
REEB 18.02 (6), colons are no longer in use and have been replaced by periods; the use of and is deleted as the introductory clause is amended to indicate all of the items in the list apply.
SECTION 7: The proposed rules correct minor typos, grammatical and punctuation errors, and utilize the new rule-making format required since the last revision of this chapter.
SECTIONS 8 to 10: The intent of the proposed changes is to clarify when a trust account can be opened and the naming of such accounts; no substantive changes are proposed.
SECTION 11: The proposed rules move existing text to a more appropriate subsection and provide information to access forms via the department webpage.
SECTION 12: The proposed rules clarify designating responsibilities as to who holds escrow funds.
SECTION 13: The proposal repeals a section relating to cooperating brokers, a practice that has ceased.
SECTION 14: Proposed changes are for clarification purposes only.
SECTION 15: The proposed rules clarify when comingling of funds are prohibited; in addition, subsection titles are created to assist the reader.
SECTIONS 16 and 17: The proposed rules renumber the subsection as an introductory clause due to the repeal of sub. (2). The proposed rules repeal sections that are determined to be no longer in use or antiquated to the real estate industry—promissory notes and branch offices.
SECTIONS 18, 19, and 20: The proposed rules relate to recordkeeping, specifically ledgers, journals, and trial balances. Clarification of terms and designating responsibilities are also proposed.
SECTION 21. This section establishes an effective date of July 1, 2014, which is timely for upcoming training and examinations.
Summary of, and comparison with, existing or proposed federal regulation
There are no existing or proposed federal regulations addressing real estate trust accounts with respect to licensees.
Comparison with rules in adjacent states
An Internet-based search revealed the following:
Illinois: In Illinois, the Bureau of Real Estate Professions administers and enforces the Illinois Real Estate License Act of 2000, the Real Estate Timeshare Act, the Land Sales Registration Act, the Real Estate Appraiser Licensing Act of 2002, Provisions and Rules of the Uniform Standards of Professional Appraisal Practice, the Auction License Act, and the Home Inspector License Act. The Bureau has responsibility for licensing and regulating real estate brokers, managing brokers, leasing agents, real estate firms, real estate appraisers, auctioneers, auction firms, home inspectors, and home inspector entities. An internet search did not reveal details relating to any Illinois codes and statues pertaining to real estate trust accounts.
Iowa: In Iowa, the Professional Licensing Division (IPLD) oversees the real estate industry through the following rules: Iowa Code ch.
543B, Real Estate Brokers and Salespersons; ch.
543C, Sales of Subdivided Land Outside of Iowa; and ch.
557A, Iowa Time-Share Act. These rules are published in the Iowa Administrative Code ch. 193E. Under the jurisdiction of the IPLD, the Iowa Real Estate Commission regulates and administers the real estate laws in Iowa. Notification of opening, closing and transferring accounts, naming the accounts, as well as submitting interest to a designated state agency is similar to rules and statutes in Wisconsin.
Michigan: In Michigan, Article 25 of Public Act 299 of 1980, licenses and regulates the real estate industry through the Board of Real Estate Brokers and Salespersons. In Michigan, R339.22313, rule 313,
real estate trust accounts are held in non-interest bearing, demand-checking accounts. Received funds must be deposited within two banking days, with some exceptions. A third party may manage the funds if interest is being sought. Disbursement, co-mingling and recordkeeping are detailed in the state guidelines for trust accounts. [
http://www.rentupm.com/wp-content/uploads/2011/11/Michigan-Trust-Account-Guidelines.pdf].
Minnesota: The Minnesota statutes are similar to Wisconsin and require all real estate trust accounts to pool interest from interest bearing accounts. The commissioner of management and budget shall deposit such funds into the housing trust fund account. Chapter 82.75, subd. 5, Trust accounts, outlines the state requirements, which include: maintaining and retaining records, timeliness of transaction including deposits within three business days. [
https://www.revisor.mn.gov/statutes/?id=82.75].
Summary of factual data and analytical methodologies
The Board relied upon their knowledge of processes and procedures currently in place in the industry and made determinations on modifying or eliminating out-dated practices and terms when found in their review. Practices relating to bookkeeping and keeping ledgers have changed with the introduction of computer software, for example.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis
Data was obtained from the Division of Professional Credential Processing regarding the number of licensees that would be affected by this regulatory change. As of 4/15/2013, there are 6,139 active licensed real estate salespersons and 10,373 active licensed real estate brokers. There are 1,051 licensed real estate business entities. The majority of real estate licensees work in small business environments; however, the proposed rules do not include any policy changes that would impact licensees or small business.
Fiscal Estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Initial Regulatory Flexibility Analysis or Summary
This rule will not have a significant adverse effect on “small business."
Agency Contact Person
Jean MacCubbin, Program Manager
Department of Safety and Professional Services, Division of Policy Development
1400 East Washington Avenue, Room 151
P.O. Box 8935
Madison, WI 53708
Telephone: (608) 266-0955
Telecommunications relay services: at 711
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
|
X Original
⍽ Updated
⍽ Corrected
|
2. Administrative Rule Chapter, Title and Number
|
Chapter REEB 18, Trust Accounts.
|
3. Subject
|
Modernize the rules to reflect best practices by removing antiquated provisions, and repeal sections deleted by 2001 Act 18.
|
4. Fund Sources Affected
|
5. Chapter 20, Stats. Appropriations Affected
|
⍽ GPR
⍽ FED X PRO ⍽ PRS
⍽ SEG ⍽ SEG-S
|
s. 20.165 (1) (g), Stats.
|
6. Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Cost
|
7. The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
|
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes
X No
|
9. Policy Problem Addressed by the Rule
|
With the exception of renumbering the chapter, this chapter has not been updated since 1983; the board has indicated various practices which are outdated.
|
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
|
Licensees, real estate brokers, and salespersons.
|
11. Identify the local governmental units that participated in the development of this EIA.
|
None known.
|
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
There are no new or increased costs associated with the promulgation of these rules on any of the business sectors listed.
|
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
For new applicants for licenses, the rules will reflect contemporary practices specific to the real estate industry.
|
14. Long Range Implications of Implementing the Rule
|
The rule is not expected to need further revisions in the long-term.
|
15. Compare With Approaches Being Used by Federal Government
|
There is no existing or proposed legislation regarding real estate (investment) accounts.
|
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
IA and MN have similar rules and require the interest to be forwarded to the state; MI has similar rules on the establishment and operation of trust accounts; IL has no state-level rules or laws pertaining to real estate trust accounts.
|
17. Contact Name
|
18. Contact Phone Number
|
Jean MacCubbin
|
(608) 266-0955
|
This document can be made available in alternate formats to individuals with disabilities upon request.
