Sections 16.004 (1), 16.965 (5), and 227.11 (2) (a), Stats.
Staff time required:
The Department estimates 200 hours to promulgate this rule.
Employe Trust Funds
Subject:
ETF Code - Relating to the requirement that employers reporting more than 250 employes on the annual earnings and service detail must report using an electronic reporting format.
Description of policy issues:
Objectives of the rule:
The objective of this rule is to streamline the Department's processing of annual detail reports, reduce the number of participant account discrepancies due to keying errors, and reduce the cost associated with contracting with private vendors for the keying of paper reports. This rule will also reduce the amount of time spent by internal staff and WRS employers in identifying and resolving discrepancies in participant accounts due to keying errors.
Policy analysis:
Currently, s. ETF 10.60 (2), Wis. Adm. Code states, “The secretary may, for specified employers or types of coverage, provide for summary reporting on a monthly basis to accompany the monthly remittance required in sub. (1) (b) and detailed reporting on a quarterly, semi-annual, or annual basis.”
The rule does not spell out the manner in which employers should report their annual employe detail to the Wisconsin Retirement System (WRS). Currently, many large employers participating in the WRS continue to report annual detail transactions on paper. This is an inefficient use of time and due to keying errors, can result in participant account errors, which must be corrected at a later date.
This requirement for electronic reporting is similar to that of the Internal Revenue Service (IRS), which requires employers having more than 250 employes to report their earning information on an electronic basis.
Policy alternatives to the proposed rule:
There is no alternative to the rule, since s. 40.06 (1) (d), Stats. requires that the Department fix the time and the types of reporting which must be completed. Sections 40.06 (2) and (3), Stats., specify the consequences when reports are not received in a timely manner.
Statutory authority for the rule:
Sections 40.03 (1) (m) and (2) (g), (h) and (i) and 40.06 (1), (2) and (3), Stats.
Staff time required:
The Department estimates that state employes will spend 30 hours to develop this rule.
Financial Institutions
(Div. of Banking)
Subject:
DFI-Bkg Code - Relating to authorizing of state-chartered banks to control or hold an interest in financial subsidiaries.
Description of policy issues:
Description of the objective of the rule:
The proposed rule would allow state-chartered banks, with the prior approval of the Division of Banking, to control or hold an interest in financial subsidiaries. A financial subsidiary would engage in activities that are financial in nature or incidental to a financial activity. The objective of the rule is to ensure that state-chartered banks will not be at a competitive disadvantage to other financial institutions that have received similar authority under the Gramm-Leach-Bliley Act of 1999.
Description of existing relevant policies and new policies proposed to be included in the rule and an analysis of policy alternatives:
The Gramm-Leach-Bliley Act of 1999 creates a financial subsidiary that can be used by national banks to engage in many of the same financial activities that are permitted under the Act for the new financial holding companies. The new authority substantially exceeds the current authority for subsidiaries of state-chartered banks.
State-chartered banks will be at a competitive disadvantage if they are not granted similar authority to engage in the new financial activities through financial subsidiaries. National banks are permitted under the Act to control or hold an interest in financial subsidiaries to engage in activities that are financial in nature or incidental to a financial activity except, as a principal, for real estate development, real estate investment activities, certain insurance underwriting and merchant banking. These financial activities are substantially broader than “the business of banking or incidental to the business of banking activities” currently permitted for subsidiaries of state-chartered banks under s. DFI-Bkg 3.04.
State-chartered banks are permitted by statute to “undertake any activity, exercise any power or offer any financially related product or service in the state that any other provider of financial products or services may undertake, exercise or provide or that the division finds to be financially related.”
The proposed rule is consistent with Section 121 (d) of the Act which creates new Section 46 of the Federal Deposit Insurance Act. This new section permits insured state banks to control or hold an interest in a financial subsidiary subject to the safety and soundness firewalls established by that section of the Act. The proposed rule would be the implementing provision under state law which may be necessary for state-chartered banks to exercise this new authority.
Statutory authority for the rule:
Section 221.0322 (2), Stats.
Estimate of the amount of time state employes will spend to develop the rule and of other resources necessary to develop the rule:
Estimated time to be spent by state employes -- 40 hours. No other resources are necessary.
Financial Institutions
(Div. of Savings Institutions)
Subject:
DFI-SB Code - Relating to authorizing of state-chartered savings banks to control or hold an interest in financial subsidiaries.
Description of policy issues:
Description of the objective of the rule:
The proposed rule would allow state-chartered savings banks, with the prior approval of the Division of Savings Institutions, to control or hold an interest in financial subsidiaries. A financial subsidiary would engage in activities that are financial in nature or incidental to a financial activity. The objective of the rule is to ensure that state-chartered savings banks will not be at a competitive disadvantage to other financial institutions that have received similar authority under the Gramm-Leach-Bliley Act of 1999.
Description of existing relevant policies and new policies proposed to be included in the rule and an analysis of policy alternatives:
The Gramm-Leach-Bliley Act of 1999 creates a financial subsidiary that can be used by national banks to engage in many of the same financial activities that are permitted under the Act for the new financial holding companies. The new authority substantially exceeds the current authority for subsidiaries of state-chartered savings banks.
State-chartered savings banks will be at a competitive disadvantage if they are not granted similar authority to engage in the new financial activities through financial subsidiaries. National banks are permitted under the Act to control or hold an interest in financial subsidiaries to engage in activities that are financial in nature or incidental to a financial activity except, as a principal, for real estate development, real estate investment activities, certain insurance underwriting and merchant banking.
State-chartered savings banks are permitted by statute to “undertake any activity, exercise any power or offer any financially related product or service in the state that any other provider of financial products or services may undertake, exercise or provide or that the division finds to be financially related.”
The proposed rule is consistent with Section 121 (d) of the Act which creates new Section 46 of the Federal Deposit Insurance Act. This new section permits insured state banks to control or hold an interest in a financial subsidiary subject to the safety and soundness firewalls established by that section of the Act. The proposed rule would be the implementing provision under state law which may be necessary for state-chartered savings banks to exercise this new authority.
Statutory authority for the rule:
Section 214.03, Stats.
Estimate of the amount of time state employes will spend to develop the rule and of other resources necessary to develop the rule:
Estimated time to be spent by state employes -- 40 hours. No other resources are necessary.
Financial Institutions
(Div. of Savings Institutions)
Subject:
DFI-SL Code - Relating to authorizing of state-chartered savings and loans to control or hold an interest in financial subsidiaries.
Description of policy issues:
Description of the objective of the rule:
The proposed rule would allow state-chartered savings and loans, with the prior approval of the Division of Savings Institutions, to control or hold an interest in financial subsidiaries. A financial subsidiary would engage in activities that are financial in nature or incidental to a financial activity. The objective of the rule is to ensure that state-chartered savings and loans will not be at a competitive disadvantage to other financial institutions that have received similar authority under the Gramm-Leach-Bliley Act of 1999.
Description of existing relevant policies and new policies proposed to be included in the rule and an analysis of policy alternatives:
The Gramm-Leach-Bliley Act of 1999 creates a financial subsidiary that can be used by national banks to engage in many of the same financial activities that are permitted under the Act for the new financial holding companies. The new authority substantially exceeds the current authority for subsidiaries of state-chartered savings and loans.
State-chartered savings and loans will be at a competitive disadvantage if they are not granted similar authority to engage in the new financial activities through financial subsidiaries. National banks are permitted under the Act to control or hold an interest in financial subsidiaries to engage in activities that are financial in nature or incidental to a financial activity except, as a principal, for real estate development, real estate investment activities, certain insurance underwriting and merchant banking.
State-chartered savings and loans are permitted by statute to “undertake any activity, exercise any power or offer any financially related product or service in the state that any other provider of financial products or services may undertake, exercise or provide or that the division finds to be financially related.”
The proposed rule is consistent with Section 121 (d) of the Act which creates new Section 46 of the Federal Deposit Insurance Act. This new section permits insured state banks to control or hold an interest in a financial subsidiary subject to the safety and soundness firewalls established by that section of the Act. The proposed rule would be the implementing provision under state law which may be necessary for state-chartered savings and loans to exercise this new authority.
Statutory authority for the rule:
Section 215.135, Stats.
Estimate of the amount of time state employes will spend to develop the rule and of other resources necessary to develop the rule:
Estimated time to be spent by state employes -- 40 hours. No other resources are necessary.
Medical Examining Board
Subject:
Med Code - Relating to the exception to the 7 year rule regarding the completion of the USMLE Examination (United States Medical Licensing Examination).
Description of policy issues:
Objective of the rule:
To allow for those applicants who are in an MD-PhD program who are not able to complete all three steps of the USMLE examination in the 7 year period.
Policy analysis:
This change would allow the Medical Examining Board to promulgate rules regarding an exception for applicants who have been in an MD-PhD program.
Statutory authority:
Sections 15.08 (5) (b), 227.11 (2) and 448.40 (1), Stats.
Estimate of the amount of time that state employes will spend to develop the rule and of other resources necessary to develop the rule:
50 hours.
Natural Resources
(Fish, Game, etc., Chs. NR 1--)
Subject:
NR Code - Relating to student fees for hunter, snowmobile and ATV education classes.
