Statements of Scope of Proposed Rules
Employe Trust Funds
Subject:
Ch. ETF 41 - Relating to long-term care insurance.
Description of policy issues:
1) Objectives of the rule:
The rules provide standards for optional long-term care policies under s. 40.55, Stats., which may be offered to state employes and annuitants. These standards are in addition to the minimum standards established by the Office of the Commissioner of Insurance (OCI) for long-term care policies sold in Wisconsin. The objective of this modification is to provide more clear guidelines to insurers and the public.
2) Policy analysis:
The current long-termcare rules were adopted in 1991. Since that time, several changes have been made to the minimum standards promulgated by OCI. As a result, certain provisions of ch. ETF 41 need to be modified or repealed to be consistent with the OCI provisions. For example, ETF rules allow insurers to make payment decisions based on medical necessity. This is no longer allowed by OCI rule.
The Department may also consider changes designed to allow greater flexibility to insurers who develop policies to meet the standards. For example, current policies must meet one of three inflation protection standards required by the ETF rule. These may be modified to allow for a greater degree of choice by insurers.
3) Policy alternatives to the Proposed Rule:
Do not amend the rule. Since the statute provides that all policies offered must first meet the OCI requirements, any standard in OCI rule will take precedence over the ETF rule.
Statutory authority for rule-making:
Sections 40.03 (2) (i) and (t) and 40.08 (8) (a) 1. and 3., Stats.
Staff time required:
The Department estimates that state employes will spend 80 hours to develop this rule.
Insurance, Commissioner of
Subject:
SS. Ins 2.14 and 2.16 - Relating to life insurance solicitation and advertising.
Description of policy issues:
a) A statement of the objective of theproposed rule:
To interpret ss. 601.01 (2) and (3), 628.34 and 628.38, Stats. To amend ss. Ins 2.14 and 2.16, Wis. Adm. Code, to be consistent with the requirements proposed by s. Ins 2.17, Wis. Adm. Code.
b) A description of existing policies relevant to the rule and of new policies proposed to be included in the rule, and an analysis of policy alternatives:
Section Ins 2.14 (4), Wis. Adm. Code, regarding life insurance solicitation currently contains requirements which contradict the requirements proposed under s. Ins 2.17, Wis. Adm. Code. Additionally, the Buyer's Guide to Life Insurance shown in Appendix I of s. Ins 2.14 will need to be revised to account for changes included in the National Association of Insurance Commissioners' (NAIC) most recent version of their publication entitled “Life Insurance Buyer's Guide”, which takes into consideration the requirements proposed under s. Ins 2.17, Wis. Adm. Code.
Section Ins 2.16, Wis. Adm. Code, regarding life insurance advertising currently contains requirements and definitions which contradict requirements and definitions proposed under s. Ins 2.17, Wis. Adm. Code.
Statutory authority for the rule:
Sections 601.41 (3), 628.34 (12) and 628.38, Stats.
An estimate of the amount of time that state employes will spend to develop the rule and a description of other resources necessary to develop the rule:
It is estimated that the amount of time will be a minimum of 160 hours.
Insurance, Commissioner of
Subject:
S. Ins 3.53 - Relating to HIV testing procedures.
Description of policy issues:
a) A statement of the objective of theproposed rule:
To interpret s. 631.90, Stats., and to provide individual life and health insurers wth more flexibility in conducting HIV tests by incorporating into s. Ins 3.53, Wis. Adm. Code, some of the new laboratory testing techniques endorsed by the FDA and the State Epidemiologist.
b) A description of existing policies relevant to the rule and of new policies proposed to be included in the rule, and an analysis of policy alternatives:
Currently, s. Ins 3.53, Wis. Adm. Code, limits the type of HIV tests insurers may use to underwrite individual life and health insurance policies. At this time, insurers are limited to using only FDA-licensed blood tests. The rule specifically states that only FDA-licensed tests may be used {refer to s. Ins 3.53 (4) (e), Wis. Adm. Code} and defines an FDA-licensed test as “. . . any single whole blood, serum, or plasma specimen which has been approved by the federal Food and Drug Administration” {refer to s. Ins 3.53 (3) (d), Wis. Adm. Code}. Additionally, the rule states that the only tests which may be used to detect HIV are those that the State Epidemiologist cited in a report dated August 30, 1990, entitled “Validated positive tests and medically significant and sufficiently reliable test to detect the presence of HIV, antigen or nonantigenic product of HIV or an antibody to HIV”{refer to s. Ins 3.53 (1), Wis. Adm. Code}.
Since the above noted sections of s. Ins 3.53 were implemented, the FDA has approved HIV testing measures that do not rely only on blood derivatives, but rather, can be conducted with the use of other bodily fluids. As a result, the definition of an “FDA-licensed test” is no longer correct. Additionally, the State Epidemiologist, in conjunction with the Department of Health and Family Services, has endorsed additional HIV testing measures (in addition to blood tests) as acceptable for insurance underwriting purposes. Since the rule references the State Epidemiologist's report dated August 31, 1990, the rule fails to take into consideration recent determinations made by the State Epidemiologist, in his report dated January 24, 1997.
Statutory authority for the rule:
Sections 601.41 (3), 628.34 (12) and 631.90 (3) (a), Stats.
An estimate of the amount of time that state employes will spend to develop the rule and a description of other resources necessary to develop the rule:
It is estimated that the amount of time will be a minimum of 140 hours.
Natural Resources
Subject:
Ch. NR 101 - Relating to reports and fees for wastewater dischargers.
Description of policy issues:
1) Subject of the administrative code action/nature of Board action:
The ($100) base fee category for holders of general permits was exempted until 1996, to allow time for quality assurance activities for this class of permits. There are concerns about implementing the fee category as promulgated. Our proposal is to modify the rule language to remove the $100 general permit fee.
2) Description of policy issues to be resolved, include groups likely to be impacted or interested in the issue:
Issues of the general permit fees are:
1 The ability to equitably assess fees; and
2 The cost/benefit of these fees in light of the “revenue cap” provisions of s. 299.15, Stats. (formerly known as s. 144.96, Stats.)
There are approximately 2,000 dischargers covered by one of 17 general permits that constitute the Industrial General Permit Program (this is completely separate from the Stormwater General Permit Program). Industrial General Permits (GP) are designed to save Department time by minimizing the steps of authorizing a discharge under a WPDES permit for certain groups of facilities or operations with similar wastewater characteristics. Once a GP is issued, facilities meeting the applicability criteria of the permit can be covered under the permit (typically done by letter). The facility is then required to comply with monitoring requirements, effluent limitations, and other requirements in the GP.
The equitability issue:
The district wastewater programs were given the responsibility to manage general permits within their staff resources, and the significance of the dischargers in their district. This has led to differences in the level of notification, tracking and on-going management of general permitted dischargers. The differences are based on geographical priorities in addressing pollutant loadings. The differences are appropriate within the GP program, but would make it difficult to assess fees fairly.
The cost/benefit issue:
GP's typically cover discharges that are not considered a significant environmental concern. Some of the “facilities” that are covered under the GP program include individual residences and citizens, which may react negatively to paying a fee. One type of GP discharge that is considered environmentally significant is from remedial action (groundwater clean-up) operations; however, charging a fee for this GP is inefficient, given that the fee would likely be reimbursable under the financially strapped PECFA program.
General permit fees would reduce the discharge-based fees by the amount assessed for general permits. The total revenue actually collected would remain the same under the cap provisions of s. 299.15 (3) (cm) 2., Stats. Since dischargers paying a base fee only would not be affected, GP fees would impact about 150 industrial dischargers. If we assess fees to all general permittees, the reduction of the discharge-based fees would average about $1,300 per facility. If we assessed fees to a subset of GP's, the reduction would be less.
3) Explain the facts that necessitate the proposed change:
Ch. NR 101, as modified in 1993, assumes that general permits could be assessed in a fair and equitable manner. The DNR's analysis indicates that this is not the case and implementation of the fees will likely generate needless negative reaction from facilities covered under the GP program as it is currently being administered.
Statutory authority for the rule:
Section 299.15, Stats.
An estimate of the amount of time that state employes will spend to develop the rule and a description of other resources necessary to develop the rule:
It is estimated that the amount of time will be a minimum of 17 hours. One public hearing is proposed to be held at a date yet to be determined.
Psychology Examining Board
Subject:
Psy Code - Relating to limiting the number of hours per continuing education program.
Description of policy issues:
Objective of the Rule:
To limit self-developed continuing education programs to no more than 20 hours total in any one biennium and to further limit any one person to no more than 20 hours.
Policy analysis:
Existing law grants the Psychology Examining Board authority to promulgate rules establishing the minimum number of continuing education hours, the requirements and procedures for certificate holders to complete continuing education programs or courses of study in order to qualify for certification renewal.
Statutory authority:
Sections 15.08 (5) (b), 227.11 (2) and 455.065, Stats.
Estimate of the amount of state employe time and any other resources that will be necessary to develop the rule:
8 hours.
Department of Regulation & Licensing
(Real Estate Board)
Subject:
RL Code - Relating to the use of unlicensed personal assistants by real estate licensees.
Description of policy issues:
Objective of the rule:
