Register

Statutory authority: ss. 227.11 (2), 458.03 and 458.085

Statutes interpreted: ss. 458.06, 458.08, 458.085, 458.09, 458.095, 458.11, 458.13 and 458.24

In this proposed rule-making order, the Department of Regulation and Licensing amends, repeals and recreates numerous provisions contained in chs. RL 80 to 87, and Appendix I, relating to the regulation of certified and licensed appraisers. Significant changes to the current rules are as follows:

1. Section RL 80.03 is revised to create definitions for the following terms: “ad valorem tax appraisal,” “appraisal course instruction,” “feasibility analysis,” “fee and staff appraisal,” “ highest and best use” and “highest and best use analysis.” These terms are used, but are not defined, in ch. RL 83, to refer to the various types of acceptable appraisal experience.

2. Section RL 82.04 (3), relating to claim of examination error, is amended to clarify that an applicant may retake an examination if the Department's decision relating to a claim of examination error does not result in a passing grade. If the Department's decision results in the denial of the credential application, the applicant may request a hearing under ch. RL 1.

3. Section RL 83.02 (6) is created for purposes of identifying the type of documentation which an applicant seeking a credential must submit in order to receive credit under s. 458.09, Stats., for assessor experience.

4. Sections RL 80.03 (16) and 81.02, and the Note following s. RL 87.01 (3), relating to “transitional licenses” are being repealed. These changes are being made in anticipation of the phase-out of transitional licenses on January 1, 1996. Under s. 458.08 (5), Stats., transitional licenses are valid for 2 years or until January 1, 1996, whichever occurs first.

5. Appendix I is being amended to reflect modifications to the Uniform Standards of Professional Appraisal Practice (“USPAP”) by the Appraisal Standards Board of the Appraisal Foundation. These include changes to the Record Keeping section of the Ethics Provision and to Standard 3. In addition, the USPAP Statements on Appraisal Standards (No. 1-8), are being adopted by the Department. These Statements are authorized by the bylaws of the Appraisal Foundation and are “specifically for the purpose of clarification, interpretation, explanation or elaboration of USPAP.” Statements have the full weight of a Standards Rule and can only be adopted by the Appraisal Standards Board after exposure and comment. The Department is required under s. 458.24, Stats., to periodically review USPAP and, if appropriate, revise the administrative rules to reflect revisions to the Standards.

Fiscal Estimate

1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.

2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.

3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.

Initial Regulatory Flexibility Analysis

These proposed rules will be reviewed by the Department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Stats.

Copies of Rule and Contact Person

Copies of this proposed rule are available without cost upon request to:

Pamela Haack, [phone]

Office of Administrative Rules

Dept. of Regulation & Licensing

1400 East Washington Avenue, Room 171

P.O. Box 8935

Madison, WI 53708

Savings & Loan, Commissioner of
(Savings Banks)

Notice is hereby given that pursuant to s. 214.715 (1) (d), Stats., the Office of the Commissioner of Savings and Loan will hold a public hearing at the time and place indicated below, to consider the repeal and recreation of s. SB 8.03, relating to liquidity levels required for savings banks.

Hearing Information

October 3, 1995   Suite 202

Tuesday   Office of the Commissioner

At 10:00 a.m.   4785 Hayes Road

  Madison, WI

Analysis Prepared by the Office of the Commissioner of Savings and Loan

Statutory authority: s. 214.715 (1) (d)

Statute interpreted: s. 214.715 (1) (a)

This rule provides a mechanism allowing the Commissioner of Savings and Loan to establish minimum levels of liquid assets which a savings bank should have on hand to meet cash requirements. The proposed rule gives the Commissioner more latitude than the more rigid provisions in the present rule.

The rule establishes a flexible standard and defines terms used to compute the required liquidity level. A description of how to calculate the “liquidity ratio” is prescribed in sub. (2). Terms which are used in establishing this ratio are described and include “liquid assets” and “primary liquid asset”.

Fiscal Estimate

This rule will have no fiscal impact on the Office of the Commissioner of Savings and Loan.

Initial Regulatory Flexibility Analysis

This rule will provide all savings banks -- including those fitting the definition of “small business” under s. 227.114 (1) (a), Stats. -- with the requirement of maintaining sufficient liquidity to meet demands. Exempting small businesses from this rule would be contrary to the statutory objectives which are the basis for the rule; i.e., providing all savings banks with an appropriate liquidity level to serve the public.

Text of Rule

Pursuant to the authority invested in the Commissioner of Savings and Loan by s. 214.715 (1) (d), Stats., the Commissioner hereby repeals and recreates s. SB 8.03, relating to liquidity levels required for savings banks.

LIQUIDITY RULE FOR SAVINGS BANKS

SECTION 1. SB 3.08 is repealed and recreated to read:

SB 3.08 Liquidity requirement. (1) The commissioner shall establish, by periodic written notice to all savings banks, the minimum liquidity ratio that savings banks shall maintain. The ratio shall be between 4% and 15%. At least 50% of the liquid assets shall consist of primary liquid assets. The commissioner may require a savings bank to maintain a higher ratio if the commissioner determines that the nature of the savings bank's operations requires a higher liquidity ratio.

(2) The liquidity ratio of a savings bank for a month shall be calculated as follows:

(a) Add the savings bank's daily net withdrawable deposit accounts and its outstanding borrowings due in one year or less for the previous month.

(b) Divide the amount in par. (a) by the total number of days in the previous month.

(c) Divide the savings bank's average daily total of liquid assets for the month for which the liquidity ratio is being calculated by the amount in par. (b).

(3) A liquid asset shall be either cash or an obligation authorized for investment by a savings bank. Liquid assets do not include loans, loan receivables and equity investments.

(4) In this section,“primary liquid assets” include the following unencumbered obligations:

(a) U.S. government and U.S. government agency obligations.

(b) Obligations issued by this state or a political subdivision, including a school district, in this state.

(c) Deposits in FDIC-insured financial institutions that equal or exceed the minimum capital requirements for savings banks.

(d) Cash, cash equivalent receivables, and settlements due from the U.S. or an agency of the U.S.

(e) Accrued interest receivable on any item in par. (a), (b) or (c).

(5) Other liquid assets which are not “primary liquid assets” include the following unencumbered obligations:

(a) Mortgage backed securities which are readily salable in the securities market.

(b) Mortgage derivative securities with a projected maturity of less than 4 years which are readily salable in the securities market.

(c) Securities issued by other states and political subdivisions in other states.

(d) Other securities authorized by the commissioner as investments and for which a secondary resale market exists, including authorized mutual fund investments.

(e) Accrued interest receivable on any item in par. (a) to (d).

(6) To qualify as a liquid asset, a security shall be current with respect to payment of scheduled principal or interest or both and shall be an authorized investment for a savings bank.

(7) In this section:

(a) A savings bank's designation of an investment under financial accounting standards board statement number 115 does not affect its liquid asset classification.

(b) The value of an investment included in liquid assets shall be accounted for under generally accepted accounting principles and financial accounting standards board statement number 115.

(c) Assets and liabilities of a wholly owned investment operating subsidiary shall be treated on a consolidated reporting basis with those of the parent savings bank.

  Note: A copy of the document captioned “Accounting for Certain Investments in Debt and Equity Securities” (May 1993), known as “Statement of Financial Accounting Standards No. 115” is available at the office of the commissioner, the secretary of state and the revisor of statutes. A copy may be obtained on request.

Commissioner of Railroads

Notice is hereby given that pursuant to ss. 189.02 (1), 195.03 (1), 227.11 (2) (a), and 227.24 Stats., interpreting ss. 195.04-195.043 and 195.05-195.08, Stats., the Office of the Commissioner of Railroads will hold a public hearing at the Office of the Commissioner of Railroads, Room 110, 610 North Whitney Way, in the city of Madison, Wisconsin on the 6th day of October, 1995, at 9:30 a.m. to consider the creation, amendment and repeal of rules relating to the regulation of intrastate railroad rates and practices. The Office will also consider the creation, amendment and repeal of rules relating to the regulation of intrastate railroad rates and practices it previously adopted by emergency order pursuant to s. 227.24 Stats., by publication in the official state newspaper with an effective date of July 14, 1995. The Office will also consider written comments submitted to the same address by the 29th day of September, 1995.

Upon reasonable notice, the Office will accommodate the needs of disabled individuals. Contact the Office at [phone] (not a TDD number), (Fax) 261-8220, or (1-800-947-3529) or by writing to the Office. The hearing site is accessible to people with disabilities. People with disabilities may enter the building directly from the parking lot at the west end of the building.

Analysis Prepared by the Office of the Commissioner of Railroads

The Office proposes these rule changes in order to remain its certification by the Interstate Commerce Commission (ICC) as a regulator of intrastate rail rates. The office must be recertified by the ICC every 5 years. The office's current certification expires on September 23, 1995. To be recertified, the office must update its rules to conform to changes in federal law. The proposed rule changes bring the office's rule into conformity with federal law. Several new notes provide the citation to ICC cases and tell how to contact the ICC.

Section OCT 5.02 (7) is created to allow railroads to earn adequate revenue and to comply with ICC requirements regarding adequate revenue, 49 USC 10701a and 49 USC 10704a (2), (3) and (4).

Section OCT 5.03 (1) (b) is amended to allow independently filed new and reduced rates to become effective on one day's notice and to comply with ICC requirements. Short Notice Effectiveness for Independently Filed Rail Carrier Rates, 3 I.C.C. 2d 323 (1987). The proposed rules also amend that section to allow implementation of other tariffs upon a showing of good cause as required by 49 CFR 1312.2.

The proposed rule amends s. OCT 5.04 (3) in compliance with ICC requirements under 49 USC 10707 (c) (1) and 49 CFR 1132.1 (g) to prohibit the office from suspending rates, classifications, rules or practices on its own initiative . Section OCT 5.04 (4) (intro.), (a) and (b) are renumbered and amended to conform findings by the office that a rail carrier possesses market dominance with ICC evidentiary requirements and 49 USC 10709 (d) (4). Section OCT 5.04 (5) is amended, ss. OCT 5.04 (6) and OCT 5.04 (7) are renumbered, s. OCT 5.04 (6) is created and OCT 5.04 (5) (d) is repealed to comply with ICC requirements regarding the reasonableness of rates, 49 USC 10707a (h) and the ICC orders cited in amended rule. Section OCT 5.04 (3) and (4) and (5) are also amended to comply with the format and style guidelines set forth in the Administrative Rules Procedures Manual (1994).

Sections OCT 5.07 (2) and 5.10 (2) are amended to remove the agency's address from the body of the rule. An accompanying note includes the current address. The note can be updated without following the formal rule-making process. The office also notes that it intends to begin revising all of its rules within the next six months to conform the title of the rules with the name of the agency and to accomplish substantive and procedural changes.

Analysis and Summary of Emergency Rules by the Office of the Commissioner of Railroads

This notice does not contain the full text of the emergency rules previously adopted by the Office, but instead provides this summary. A copy of the full text of the emergency rules can be obtained from the contact person listed at the end of this notice. The proposed final rules vary only slightly from the emergency rules. The variations reflect improvements recommended by the administrative rules clearinghouse. The variations from the emergency rule are not substantive. Except as noted below, the foregoing analysis of the proposed rules also applies to the emergency rules.

The emergency rules did not contain the explanatory “notes” found in the proposed rule. The notes provide references to ICC materials and the ICC's address. The emergency order incorrectly listed the rules out of numerical sequence. The emergency order combined treatment of rates for nonferrous recyclables with all other rates in one subsection. The proposed rule treats nonferrous recyclables in a separate subsection [OCT 5.04 (6)]. Consequently, two subsections [OCT 5.04 (6) and OCT 5.04 (7)] not renumbered in the emergency order are renumbered in the proposed rule. Finally, the emergency order contained the Office's address in the text of the rule. The proposed rule moves the addresses to a note.

Text of Rule

SECTION 1. OCT 5.02 (7) is created to read:

OCT 5.02 (7) REVENUE ADEQUACY. All standards and procedures shall be interpreted to be consistent with the goal of revenue adequacy. Revenue adequacy shall be determined according to the standards set forth in 49 USC 10704 (a) (2).

Note: For a discussion of adequate revenues see, Ex Parte No. 388A, State Intrastate Rail Rate Authority - P.L. 96-488, decided February 8, 1989, especially Appendix B. The Interstate Commerce Commission can be contacted at: Interstate Commerce Commission, 12th & Constitution Avenue, Washington D.C. 20423 or [phone].