Register

Conference Room 472

2811 Agriculture Drive

Madison, WI 53718-6777

The public is invited to attend the hearing and comment on the proposed rule. Following the public hearing, the hearing record will remain open until January 28, 2001 for additional written comments.

A copy of the proposed rule may be obtained, free of charge, from the Wisconsin of Department of Agriculture, Trade and Consumer Protection, Division of Trade & Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911, or by calling [phone]. Copies will also be available at the public hearing.

An interpreter for the hearing impaired is available upon request for the hearing. Please make a reservation for a hearing interpreter by January 11, 2001, by contacting Linda Meinholz at [phone] or Don Furniss at [phone] or by contacting the TDD at the Department at [phone]. Handicap access is available at the hearing.

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

Statutory Authority: ss. 93.02 (3) (a) and 99.08.

Statutes Interpreted: Ch. 99.

This rule increases annual license fees for public storage warehouses licensed under Wis. Stat. ch. 99. These are warehouses that store property (food, wearing apparel, cars, boats, furniture, household goods, etc.) for others for hire.

The department of agriculture, trade and consumer protection (DATCP) licenses public storage warehouses to protect depositors. The following warehouses are exempt from licensing under Wis. Stat. ch. 99:

•   A warehouse used only for the warehouse keeper's property

•   A grain warehouse licensed under Wis. Stat. ch. 127.

•   A frozen food locker plant.

•   A cooperative warehouse used to store farm products and merchandise only for cooperative members.

•   A municipal warehouse.

•   A dairy plant warehouse used to store the dairy plant's own products.

•   A vegetable processor's warehouse used to store the processor's own products.

•   A warehouse operated by a common carrier, if the common carrier transfers and stores property for periods of not more than 30 days.

•   A warehouse licensed under the United States warehouse act.

•   A “mini-warehouse" or other storage space rented to a person who has free access to the storage space and is responsible for the property stored there.

DATCP has adopted public storage rules under Wis. Admin. Code ch. ATCP 97. Among other things, the current rules establish annual license fees for public storage warehouses. Warehouse keepers pay annual license fees based on the warehouse size.

DATCP's regulatory program is funded entirely by license fees. Current fees are not adequate to cover program costs. This rule increases license fees as follows:

Warehouse	Size (Sq. Ft.)	Current Fee	Proposed Fee
Class 1	1–9,999	$75	$90
Class 2	10,000-49,000	$150	$185
Class 3	50,000-99,999	$240	$300
Class 4	100,000–149,999	$320	$400
Class 5	150,000–Over	$420	$500

Fiscal Estimate

This rule amends Wis. Admin Code ATCP 97.04 (4) (a) to increase the annual license fees paid by public warehouse keepers. Increases ranging from 20% to 25%, depending on license class, will provide additional revenues of approximately $16,200 annually beginning with the license year July 1, 2001. The department estimates one-time costs of approximately $500 for printing, mailing and holding hearings on the proposed rule changes.

Initial Regulatory Flexibility Analysis

The Department of Agriculture, Trade and Consumer Protection regulates public warehouse keepers to protect depositors. The regulatory program is funded entirely by license fees. Current fees are not adequate to sustain the program. License fees were last increased in 1994.

This rule increases annual license fees for public warehouse keepers, many of whom are small businesses. The fee increases range from 20% to 25%, depending upon the square footage of space used for storage of property of others, with a maximum increase of $100.

Notice of Hearing

Office of the Commissioner of Insurance
[CR 00-188]

Notice is hereby given that pursuant to the authority granted under s. 601.41 (3), Stats., and the procedure set forth in under s. 227.18, Stats., OCI will hold a public hearing to consider the adoption of a proposed rulemaking order affecting ss. Ins 3.455 and 3.46 and appendices, Wis. Adm. Code, relating to long term care insurance.

Hearing information

January 29, 2001
  1 p.m. or as soon thereafter as the matter may be reached
  Room 6, OCI, 121 East Wilson Street, Madison, WI

Written comments on the proposed rule will be accepted into the record and receive the same consideration as testimony presented at the hearing if they are received at OCI within 14 days following the date of the hearing. Written comments should be addressed to: Stephen Mueller, OCI, PO Box 7873, Madison WI 53707

Analysis prepared by the Office of the Commissioner of Insurance

Statutory authority: ss. 601.41(3), 601.42, 628.34(12), 628.38, 631.20, 632.72, 632.76 & 632.81.

Statutes interpreted: see statutory authority

Analysis: These proposed amendments and additions to Ins 3.455 and 3.46 derive from a recent redraft of the National Association of Insurance Commissioner's long term care model regulation. That regulation and these proposed amendments and additions attempt to enhance consumer protection in long term care insurance policies. The development and marketing of long term care insurance policies will broaden as the population ages. These changes will provide the proper regulatory incentives to require insurers to properly price these insurance products so that premiums can be kept stable. The rule requires enhanced consumer disclosure and notification designed to ensure that prospective applicants have sufficient information to make informed decisions about the coverage and the insurance company.

This rule also seeks to help promote uniformity in the national marketplace by essentially following the language and intent of a model act designed for promulgation in all the states. With these standards in place insurers can more easily design new products and modify existing products with some assurance that the products will be accepted in all the states. The model act was also designed to help address some of the tax issues that flow from long term care insurance products.

Among other things this rule eliminates the current loss ratio requirement on initial rate filings to enable companies to set initial premiums intended to remain in place for the life of the policy. If a company does file for a rate increase, the rule imposes significant consequences on the insurance company including disclosure requirements for future marketing of the product and future loss ratio requirements.

This proposed rule includes modifications to Ins 3.46 Appendices 1 & 2 and the creation of Appendix 5.

Fiscal Estimate

There will be no state or local government fiscal effect.

Initial Regulatory Flexibility Analysis

This rule does not impose any additional requirements on small businesses.

Contact Person

A copy of the full text of the proposed rule changes and fiscal estimate may be obtained from the OCI internet WEB site at http://www.state.wi.us/agencies/oci/ocirules.htm or by contacting

Inger Williams, Services Section, Office of the Commissioner of Insurance, at [phone] or at 121 East Wilson Street, PO Box 7873, Madison WI 53707-7873.

Notice of Hearing

Office of the Commissioner of Insurance
[CR 00-189]

Notice is hereby given that pursuant to the authority granted under s. 601.41(3), Stats., and the procedure set forth in under s. 227.18, Stats., OCI will hold a public hearing to consider the adoption of a proposed rulemaking order affecting ch. Ins 25, Wis. Adm. Code, relating to privacy of personal nonpublic information.

Hearing Information

January 31, 2001
  10:00 a.m., or as soon thereafter as the matter may be reached
  Room 6, OCI, 121 East Wilson Street, Madison, WI

Written comments on the proposed rule will be accepted into the record and receive the same consideration as testimony presented at the hearing if they are received at OCI within 7 days following the date of the hearing. Written comments should be addressed to: Fred Nepple, General Counsel, OCI, PO Box 7873, Madison WI 53707

Analysis Prepared by the Office of the Commissioner of Insurance

Statutory authority: ss. 600.01 (2), 601.41 (3), 601.42, 633.17, and 628.34 (12).

Statutes interpreted: ss. 600.01, 610.70, and 628.34 (12).

Proposed rule governing privacy of Consumer Financial and Health Information

The proposed rule is based on the National Association of Insurance Commissioners (“NAIC") model Privacy of Consumer Financial and Health Information Regulation. That model was prepared by the NAIC to meet the requirements of Title V of the Gramm-Leach-Bliley Act (“GLB"). The objective of the NAIC in preparing that model was to achieving uniformity with the federal privacy rules for financial information.

1. Protection of Nonpublic Personal Financial Information:

The financial information portion of the proposed rule tracks the GLB privacy regulations which were promulgated by the federal banking agencies in May, 2000. Licensees (all individuals or entities required to obtain a license under the Wisconsin insurance code, including agents, brokers, TPAs and insurers) must provide notices describing their privacy policies to their consumers and customers, and provide consumers and customers with the opportunity to prohibit the sharing of nonpublic personal information with nonaffiliated third parties (“opt out"). Agents may rely on compliance by the insurers they represent. Disclosure among affiliated entities is not restricted.

In addition, the proposed rule will have a July 1, 2001 effective date and will make it clear that the GLB provisions are not in effect in this state until that date.

The proposed rule includes certain exceptions to the general prohibition on sharing information with non-affiliates without going through the privacy notice and opt out procedures. These exceptions are intended to allow sharing for normal business reasons. The proposed rule permits sharing nonpublic personal financial information with nonaffiliated third parties if the licensee gives initial notice of its privacy polices to the consumer and the information is shared under an agreement for the third party to provide services or under a joint marketing agreement. The proposed rule also permits sharing nonpublic personal financial information, without giving the privacy notices, to accomplish the purpose of processing and servicing a consumer transaction and for certain enumerated purposes including purposes authorized by law, to protect against fraud or breach of confidentiality, to provide information to rate advisory, accreditation, and rating organizations, to attorneys and accountants, to regulators, in connection with a merger or sale of a business, and to respond to a subpoena or court ordered disclosure.

The restrictions on sharing information with non-affiliates applies to information obtained from individuals who are not customers of the licensee but who provide information to obtain a benefit under a policy or as claimant. However licensees are not required to provide privacy notices to those consumers or follow the opt out procedure unless they share the information other than as permitted under the rule. Licensees are required to give those customers an initial privacy notice if the information is shared under a joint service or marketing service contract. In addition a licensee is only required to provide annual privacy notices to commercial lines customers, such as group plan sponsors and employer/worker compensation policyholders, but not to the employees or dependents claiming under those policies, unless the licensee shares information other than as permitted by the rule.

2. Protection of Nonpublic Personal Health Information:

The proposed rule includes separate provisions governing health information. These provisions apply to those licensees who are not already subject to the restrictions applicable to an insurer under s. 610.70, Stats. The provisions are in addition to restrictions that may be applicable under s. 146.82, Stats., to patient health care records. The rule makes it clear that an insurer is responsible for ensuring that its agents are in compliance with s. 610.70, Stats.

Those licensees not governed by s. 610.70, Stats., primarily brokers and third party administrators, are subject to provisions of the proposed rule that prohibit the licensee from sharing health information with any person, affiliated or non-affiliated, unless they obtain the affirmative consent to the sharing of health information with any person. The proposed rule includes exceptions to this restriction intended to allow the licensee to disclose the health care information consistent with the purpose for which it was obtained. Some of these include claims administration; claims adjustment and management; detection, investigation or reporting of actual or potential fraud, misrepresentation or criminal activity; underwriting; policy placement or issuance; loss control; rate-making and guaranty fund functions; reinsurance and excess loss insurance; risk management; case management; disease management; quality assurance; quality improvement; performance evaluation; provider credentialing verification; utilization review; peer review activities; and actuarial, scientific, medical or public policy research. Additional insurance functions may be added with the approval of the commissioner to the extent they are necessary for appropriate performance of insurance functions and are fair and reasonable to the interest of consumers.

The health information provisions of the proposed rule do not apply to licencees who are in compliance with the health information privacy regulations promulgated by the U.S. Department of Health and Human Services (“HHS")pursuant to the Health Information Portability and Accountability Act (HIPAA). The HHS regulations will not be effective for two years.

3. Additional Provisions

The proposed rule includes provisions that prohibit the sharing of account access information and that prohibit unfair discrimination based on a refusal to give consent to the sharing of information.

The Commissioner particularly requests comment on the effect of inclusion of third party claimants and commercial polices within the scope of the rule as well as comment that describes any additional exceptions that should be permitted for the sharing of protected information.

Fiscal Estimate

There will be no state or local government fiscal effect.

Initial Regulatory Flexibility Analysis

Notice is hereby further given that pursuant to s. 227.114, Stats., the proposed rule may have an impact on small businesses. The initial regulatory flexibility analysis is as follows:

a. Types of small businesses affected:

Insurers, insurance intermediaries and third party administrators

b. Description of reporting and bookkeeping procedures required:

None beyond those currently required.

c. Description of professional skills required:

The proposed rule will require maintenance of information and operating systems to comply with its requirements.

Contact Person

A copy of the full text of the proposed rule changes and fiscal estimate may be obtained from the OCI internet WEB site at http://www.state.wi.us/agencies/oci/ocirules.htm or by contacting Tammi Kuhl, Services Section, Office of the Commissioner of Insurance, at [phone] or at 121 East Wilson Street, PO Box 7873, Madison WI 53707-7873.

Notice of Hearing

Public Service Commission
[CR 00-187]

The Commission proposes an order to amend ss. PSC 1.04, PSC 3.02(1)(b) and (e), and PSC 3.04(1) and to repeal and recreate ch. PSC 2, Wis. Admin. Code, relating to practice and procedure before the Commission.

Notice is given that pursuant to ss. 196.02 (3) and 227.11 (2), Stats., and interpreting ss. 196.24 (3), 196.26 to 196.30, 196.33 and 196.39, Stats., and, generally, ch. 196, Stats., the Commission will hold a hearing in the Amnicon Falls Hearing Room at the Public Service Commission Building, 610 North Whitney Way, Madison, Wisconsin, on Friday, January 26, 2001, at 9:00 a.m. to consider the amendment and the repeal and recreation of rules relating to practice and procedure before the Commission.

This building is accessible to people in wheelchairs through the Whitney Way first floor (lobby) entrance. Parking for people with disabilities is available on the south side of the building. Any person with a disability who needs additional accommodations to participate in this hearing or who needs to obtain this document in a different format should contact the person identified below.

The Commission will accept written comments on the proposed rules if filed no later than January 19, 2001