Summary of Final Regulatory Flexibility Analysis:
The department's proposed rules will have an impact on most landlords who lease residential dwelling units. Many of these landlords are small businesses as defined by s. 227.114 (1)(a), Stats.
The current rules regulate residential rental practices by landlords under ch. ATCP 134, Wis. Adm. Code. This rule, which was developed in consultation with an ad hoc advisory committee that included landlord and tenant representatives clarifies and simplifies the rules. This rule will assist landlords in complying with ch. ATCP 134, and should effect a decrease in legal conflicts between landlords and tenants. Among other things, this rule:
• Clarifies the coverage of the rule.
• Clarifies the definition of “rental agreement.” A rental agreement (conveying a tenancy interest in real estate) does not arise until the parties agree on the essential terms of tenancy, including the specific dwelling unit and the amount of rent to be paid for that dwelling unit.
• Allows landlords and tenants to agree that they will enter into a rental agreement in the future, assuming the satisfactory negotiation of specific terms and conditions, before a specific dwelling unit is identified, but prohibits deceptive “bait and switch” tactics by landlords.
• Clarifies current rules related to the return and withholding of “earnest money” deposits paid by prospective tenants.
• Modifies current rules related to the documentation of pre-existing damages.
•Clarifies current requirements related to the disclosure of conditions affecting the habitability of the dwelling unit.
•Clarifies current procedures for negotiating nonstandard rental provisions which do any of the following:
* Expand a landlord's normal right of entry to a tenant's dwelling unit.
* Expand the normal reasons for which a landlord may withhold a tenant's security deposit.
* Give the landlord a lien on the tenant's personal property.
•Requires landlords to provide tenants receipts for cash rent payments.
• Prohibits rental provisions which purport to waive the landlord's legal obligation to provided fit and habitable premises.
• Clarifies current rules related to a landlord's entry into a tenant's dwelling unit.
• Regulates, but does not prohibit, penalties for late rent payment.
• Clarifies the deadline by which a landlord must return or account for a tenant's security deposit.
• Clarifies procedures for returning security deposits and earnest money.
• Prohibits forcible “self-help” or constructive evictions.
As a result of input received during the public hearing and comment period, the division modified the draft rule to accommodate the needs of small business owners / landlords in the following areas:
•The draft rule was modified to allow landlords to charge the actual cost of, but not more than $20, for the purpose of obtaining a consumer credit report on a prospective tenant from a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis, or its contract affiliates, subject to some limitations. This change is intended to reduce costs associated with screening tenants who falsify applications.
•The draft rule was modified to allow up to 21 calendar days for landlords to complete application processing before requiring return of earnest money deposits. The purpose of this change is to reduce the costs of processing rental applications and provide small business owners with the requisite time to adequately screen tenants.
• The draft rule was modified to allow multiple non-standard rental provisions to be contained within a single document and to allow the document to be pre-printed. This change is intended to reduce paperwork and printing costs.
•The draft rule was modified to allow tenants to designate, in writing, the specific parties to whom the security deposit shall be paid. The purpose of this change is to reduce confusion regarding which party in a rental agreement is due the return of a security deposit, and reduce liability to business owners.
The revisions do not create additional financial burdens and therefore will have no adverse impact on small business.
Summary of Comments of Legislative Committees:
On July 28, 1998, this department transmitted the above rule for legislative committee review. On July 29, 1998 this rule was assigned to the Senate Committee on Business, Economic Development and Urban Affairs. On August 6, 1998, the rule was assigned to the Assembly Committee on Housing. No action taken during the review period by the committees.
On September 3, the Board of Agriculture, Trade and Consumer Protection approved a minor modification to the rule provisions regarding credit checks as a result of contacts received from legislators and members of the Wisconsin credit industry. The department was asked to modify the rule to better identify the types of consumer credit reports for which a landlord may charge a prospective tenant. This rule modification was transmitted to the chairpersons of the above committees on September 4, 1998 for an additional 10 day review period. The department received no comments or requests for hearing during the additional review period from the committees.
Ch. ILHR 47 - Petroleum Environmental Cleanup Fund.
Summary of Final Regulatory Flexibility Analysis:
The rule has elements that soften the regulatory impact on small businesses. The most significant element of flexibility is the provision that allows more frequent progress payments, under the fund, for the smallest owners and operators. The rule also allows reduced reporting and complexity for sites that are remediated for $80,000 or less. Although not all of these sites will be for small businesses, the provision is expected to apply to many owners and operators who qualify as small businesses. The oral and written hearing comments received did not address significant small business issues.
The rule change should not materially impact the cost of report preparation by small businesses. And, the rule package does not change the total estimated costs and expenses for small businesses. The timing of reimbursement and the manner in which costs are managed, changes, based upon the rule, but the total reimbursement is not impacted.
Summary of Comments of Legislative Standing Committees:
The rules were reviewed by the Assembly Committee on Environment and the Senate Committee on Business, Economic Development, and Urban Affairs. No comments were received.
Ch. Comm 57, Subch. II - Exemption of accessibility requirements for certain multilevel multifamily dwellings units.
Summary of Final Regulatory Flexibility Analysis:
The rule changes are consistent with the 1997 Wisconsin Act 237 that exempts accessibility regulations for certain multilevel multifamily dwelling units with separate exterior entrances in buildings without elevators. Small housing providers must submit plans and specifications for multilevel multifamily housing to be reviewed for compliance with the construction standards specified in chapter ILHR 66 or chapter ILHR 57, however, the accessibility provisions for this type of housing will not be required.
Summary of Comments of Legislative Standing Committees:
The rules were reviewed by the Assembly Committee on Housing and the Senate Committee on Business, Economic Development and Urban Affairs. No comments were received.
S. Comm 69.18 - Exemption of elevator access to certain areas within government-owned or operated buildings or facilities.
Summary of Final Regulatory Flexibility Analysis:
The rules establish an exemption for elevator access to certain small areas with low occupancy within government-owned or operated buildings or facilities. The rules give more design flexibility to government agencies when they construct new buildings or facilities or do alterations to existing buildings or facilities.
Summary of Comments of Legislative Standing Committees:
The rules were reviewed by the Assembly Committee on Government Operations and the Senate Committee on Business and Economic Development and Urban Affairs. No comments were received.
Ch. Comm 87 - Private sewage system replacement or rehabilitation grant program (Wisconsin Fund)
Summary of Final Regulatory Flexibility Analysis:
The rules establish updated grant fund amount tables for private sewage system replacement or rehabilitation. The rules provided for the handling of the 10% allocation of the annual grant fund allocation to be segregated for experimental private sewage system replacement or rehabilitation.
Summary of Comments of Legislative Standing Committees:
The rules were reviewed by the Assembly Committee on Natural Resources and the Senate Committee on Business, Economic Development and Urban Affairs. No comments were received.
Ch. Comm 115 - Community-Based Economic Development Program.
Summary of Final Regulatory Flexibility Analysis:
No comments or issues were received at public hearings from small businesses.
Summary of Comments:
The rules were reviewed by the Assembly Committee on Small Businesses and Economic Development and the Senate committee on Business, Economic Development and Urban Affairs. No comments were received.
S. ETF 50.48 - Administration of the long-term disability insurance program.
Summary of Final Regulatory Flexibility Analysis:
The proposed rule itself does not directly affect small businesses.
Summary of Comments:
No comments were reported.
8. Financial Institutions-Securities (CR 98-114)
DFI-Sec Code - Federal covered securities, federal covered advisors and investment adviser representatives.
Summary of Final Regulatory Flexibility Analysis:
No final regulatory flexibility analysis is included on the basis that the Division of Securities has determined, after complying with s. 227.0 16(1) to (5), Wis. Stats., that the proposed rules will not have a significant economic impact on a substantial number of small businesses.
Summary of Comments:
No comments were reported.
S. Ins 4.10 - Changes in the requirements for the Wisconsin Insurance Plan.
Summary of Final Regulatory Flexibility Analysis:
The Office of the Commissioner of Insurance has determined that this rule will not have a significant economic impact on a substantial number of small businesses and therefore a final regulatory flexibility analysis is not required.
Summary of Comments:
The legislative standing committees had no comments on this rule.
Ch. NR 25 - Commercial fishing for chubs in Lake Michigan.
Summary of Final Regulatory Flexibility Analysis:
This rule would directly affect commercial fishers by expanding winter chub fishing opportunities.
Summary of Comments by Legislative Review Committees:
The rules were reviewed by the Assembly Natural Resources Committee and the Senate environment and Energy Committee. There were no comments.
Ch. NR 46 - Definition of human residence as it pertains to forest tax law landowners
Summary of Final Regulatory Flexibility Analysis:
This rule does not affect small business. Small private forest landowners and forest industries enrolled under the Managed Forest Law will be required to meet the new building specifications on lands entered under the Managed Forest Law after January 1, 1 999 and pay withdrawal penalties when the specifications are exceeded.
Summary of Comments by Legislative Review Committees:
