The proposed rule changes repeal the import controls on Japanese beetle and will have no impact on nurseries in Wisconsin except as far as they will no longer be subject to any pass-through on inspection and certification costs. The repeal of the import controls on Japanese beetle have no reporting, recordkeeping or procedural impacts on the conduct of the Wisconsin nursery businesses.
Taxonomic Name Change and State Pest Control Programs
The proposed changes to scientific names of two honeybee pests and the clarification of the department's exemptions from its own rules on pesticide applications in particular situations will have no impact on small businesses in Wisconsin.
Small Businesses Affected by this Rule
This rule will have little or no effect on nurseries in Wisconsin, most of which are small businesses. Under current rules, out-of-state businesses shipping into Wisconsin have incurred costs for Japanese beetle inspection and certification. This rule eliminates those costs. To the extent that out-of state importers passed on the costs to nurseries receiving import shipments in Wisconsin, this rule will decrease costs to Wisconsin nurseries.
Notice of Hearing
Controlled Substances Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Controlled Substances Board in ss.
961.11 (1) and
(2),
961.15,
961.17 and
961.19, Stats., and interpreting s. ss.
961.16,
961.18 and
961.20, Stats., the Controlled Substances Board will hold a public hearing at the time and place indicated below to consider an order to create s.
CSB 2.26, relating to the scheduling of Dihydroetorphine under ch.
961, Stats., the Uniform Controlled Substances Act.
Hearing Date, Time and Location
Date: August 1, 2001
Time: 9:30 a.m.
Location: 1400 East Washington Avenue
179A
Madison, Wisconsin
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by August 15, 2001, to be included in the record of rule-making proceedings.
Analysis prepared by the Department of Regulation and Licensing
By final rule of the Drug Enforcement Administration (DEA), adopted effective November 17, 2000, Dihydroetorphine was classified as a schedule II controlled substance under the federal Controlled Substances Act (CSA). Dihydroetorphine has not been so scheduled under the Wisconsin Controlled Substances Act in Chapter
961, Stats. The objective of the rules is to bring the treatment of these drugs into conformity with that at the federal level.
Drugs that are classified as “controlled substances" under federal and state laws are subject to higher civil and criminal penalties for their illicit possession, distribution and use. Health care providers are also subject to greater record keeping requirements respecting their obtaining, prescribing and dispensing of such drugs. This is due to the fact that certain drugs have a greater likelihood of abuse, addiction and adverse consequences to patient health if utilized inappropriately, than do other drugs. The DEA administers the CSA. In doing so, it is empowered to schedule a drug as a controlled substance. International control of Dihydroetorphine in Schedule I of the Single Convention on Narcotic Drugs, 1961 in 1998, forms the basis for the DEA action. Dihydroetorphine is a derivative of Thebaine, a natural constituent of opium and thus a controlled substance under
21 USC 812 and
21 CFR Part 1308.12 (b) (1) (16).
Text of Rule
SECTION 1. CSB 2.26 is created to read:
CSB 2.26 Addition of dihydroetorphine to schedule II. (1) Section
961.16 (2) (a) 4r., Stats., is created to read:
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, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearing
Financial Institutions - Securities
NOTICE IS HEREBY GIVEN that pursuant to sections
551.63 (1) and
(2),
551.23 (8) (f),
551.23 (18) and
551.53 (1) (b), Stats., the Division of Securities of the Department of Financial Institutions will hold a public hearing at 345 West Washington Avenue, 4
th Floor Conference Room, at
10:00 a.m. on Thursday, August 23, 2001 to consider the adoption and amendment of rules under the Wisconsin Uniform Securities Law relating to certain securities registration exemptions involving capital formation by businesses.
Written comments in lieu of public hearing testimony may be submitted which must be received no later than the hearing date and should be addressed to the Administrator of the Division of Securities, 345 West Washington Avenue, PO Box 1768, Madison Wisconsin, 53701.
Statutory authority: 551.63 (1) and (2), 551.23 (8) (f), 551.23 (18) and 551.53 (1) (b)
Statutes interpreted: 551.23 (8) (f), 551.23 (18) and 551.53 (1) (b)
Analysis prepared by the Division of Securities
The rulemaking procedures under Chapter
227 of the Wisconsin Statutes are being implemented to propose for adoption a package of securities registration exemption rule provisions (and a related advertising filing exclusion) for use by businesses in raising investment capital. The registration exemption rule proposals are part of a series of recommendations stemming from the February 28, 2001 Governor's Summit on Venture Capital which focused on ways to develop equity capital for businesses. Additional Securities Law-related capital formation proposals stemming from the Summit will be contained in statutory revisions to the securities registration exemptions in ss.
551.23 (8) (g),
551.23 (10) and
551.23 (11) of the Wisconsin Uniform Securities Law to be considered by the Wisconsin legislature during the 2001-2002 Session.
The proposed capital formation subject matter rules, together with a related advertising filing exemption rule, are set forth in four Sections that do the following:
1. Create a new securities transaction registration exemption rule in s.
DFI-Sec 2.02 (9) (n) pursuant to the authority under s.
551.23 (18), Stats., based upon the Model Accredited Investor Exemption developed by the North American Securities Administrators Association (“NASAA") that was adopted on April 27, 1997 by vote of the NASAA membership, including Wisconsin. To date, securities registration exemptions based on the Model Accredited Investor Exemption have been enacted in rule or statute form by a total of 26 states.
2. Increase to $5 million (from the current $1 million) the maximum offering amount that can be raised from investors under the existing Wisconsin-Issuer-Registration- Exemption-by-Filing provision in s.
DFI-Sec 2.028 (4) under the exemption authority granted in s.
551.23 (18), Stats.
3. Expand the definition of “venture capital company" in s.
DFI-Sec 2.02 (4) (a) 3.b. for purposes of the so-called “institutional investor" rule under s.
551.23 (8) (f), Stats., to include a limited liability company (which definition currently is limited to entities organized as corporations, partnerships or associations).
4. Add to the list in s.
DFI-Sec 7.02 (1) (b) of exemptions from the advertising filing requirements of sec. 551.53 (1) (b), Wis. Stats., the disclosure and advertising materials separately filed by businesses and other issuers with the Division to claim use of the new proposed registration exemption in s.
DFI-Sec 2.02 (9) (n) based on the NASAA Model Accredited Investor Exemption.
___________________________
Each section that adopts or amends a rule is followed by a separate analysis which discusses the nature of the revision as well as the reason for it.
A copy of the entirety of the proposed rule revisions to be considered may be obtained upon request to the Division of Securities, Department of Financial Institutions, 345 West Washington Avenue, 4th Floor, P.O. Box 1768, Madison, Wisconsin 53701.
Fiscal Estimate
A summary of the fiscal effects of the proposed rule revisions is as follows: (i) No one-time revenue fluctuations; (ii) Estimated annual fiscal effects are an increase in securities registration exemption fee revenue of $2400 per year; (iii) No long-range fiscal implications; (iv) No fiscal effect on local units of government.
Initial Regulatory Flexibility Analysis
1. Types of small businesses that could be affected by the rule revisions are:
Any small business looking to raise capital in a securities offering utilizing the new proposed registration exemption in s.
DFI-Sec 2.02 (9) (n) based on the NASAA Model Accredited Investor Exemption.
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
Any small business seeking to raise capital in a securities offering utilizing the new proposed registration exemption in s.
DFI-Sec 2.02 (9) (n) would need to make the required filing with the Division containing the necessary information and meeting the requirements set forth in the rule.
Contact Person
A copy of the full text of the proposed rule revisions and fiscal estimate may be obtained from:
Randall E. Schumann (608) 266-3414
Legal Counsel for the Division of Securities
Department of Financial Institutions
345 West Washington Avenue, 4th Floor
P. O. Box 1768
Madison, WI 53701
Notice of Hearing
Financial Institutions - Securities
NOTICE IS HEREBY GIVEN that pursuant to sections 551.63 (1) and (2), 551.29 (1) (c), 551.32 (4) and (7), 551.33 (1), (2) and (6), and 551.52 (3), Wis. Stats., the Division of Securities of the Department of Financial Institutions will hold a public hearing at 345 West Washington Avenue, 4
th Floor Conference Room, at
10:00 a.m. on Thursday, August 23, 2001 to consider the adoption, amendment and repeal of rules in connection with its annual review of the administrative rules of the Division of Securities relating to the operation of Chapter
551, Stats., the Wisconsin Uniform Securities Law.
Written comments in lieu of public hearing testimony may be submitted which must be received no later than the hearing date and should be addressed to the Administrator of the Division of Securities, 345 West Washington Avenue, PO Box 1768, Madison Wisconsin, 53701.
Statutory Authority: 551.63 (1) and (2), 551.29 (1) (c), 551.32 (4) and (7), 551.33 (1), (2) and (6), and 551.52 (3)
Statutes Interpreted: 551.29 (1) (c), 551.32 (4) and (7), 551.33 (1), (2) and (6), and 551.52 (3)
Analysis prepared by the Division of Securities
The rulemaking procedures under Chapter
227 of the Wisconsin Statutes are being implemented for the purpose of effectuating the Division's annual review of the Rules of the Division of Securities. The Division's annual rule revision process for 2001 is conducted for the following purposes: (1) adopting new rules or amending existing rules applicable to the securities broker-dealer, agent, investment adviser, and investment adviser representative licensing provisions relating to certain limited agent examinations, designated supervisor requirements, and the filing of certain branch office information, to thereby effectively regulate new or changed securities licensing developments that have occurred in the securities industry and marketplace that require regulatory treatment; and (2) making modifications to certain existing federal covered security provisions to be consistent with federal securities law requirements.
Proposed revisions are being made in a total of 9 different Sections. A summary of the subject matter and nature of the more significant of the rule revisions follows:
1. Adding a new rule subsection under s.
DFI-Sec 4.01 (3) providing for a new, additional type of limited securities agent examination recently adopted by the National Association of Securities Dealers (required as a result of mandated provisions in the federal Gramm-Leach-Bliley Banking Reform Act of 1999 for bank employees engaged in selling private placement securities offerings).
2. Clarifying and extending the filing deadline requirement under existing rules s.
DFI-Sec 4.04 (8) (a) and
5.04 (5) (a) for broker-dealers and investment advisers to report to the Division regarding the opening or change of address of any branch office location in Wisconsin.
3. Repealing both the licensing requirement in s.
DFI-Sec 4.05 (6) that every broker-dealer must appoint a designated supervisor, and the related examination requirement in DFI-Sec 4.01 (5).
4. Adding a new rule subsection under the existing Federal Covered Security rules in s.
DFI-Sec 2.04 (1) to deal with filings seeking extension of the effectiveness period of notice filings previously made with the Division by unit investment trusts or closed-end investment companies.
___________________________
Each section that adopts, amends or repeals a rule is followed by a separate analysis which discusses the nature of the revision as well as the reason for it.
A copy of the entirety of the proposed rule revisions to be considered may be obtained upon request to the Division of Securities, Department of Financial Institutions, 345 West Washington Avenue, 4th Floor, P.O. Box 1768, Madison, Wisconsin 53701.
Fiscal Estimate Summary
A summary of the fiscal effects of the proposed rule revisions is as follows: (i) No one-time revenue fluctuations; (ii) an estimated annual reduction of federal covered security notice filing fee revenue of $9900 per year; (iii) No long-range fiscal implications; (iv) No fiscal effect on local units of government.
Initial Regulatory Flexibility Analysis
1. Types of small businesses that could be affected by certain of the rule revisions are:
Broker-dealer and investment adviser licensees under the Wisconsin Uniform Securities Law with fewer than 25 full-time employees who meet the other criteria of s.
227.114 (l) (a), Stats. The proposed revisions to the securities broker-dealer and investment adviser recordkeeping and rule of conduct provisions are applicable equally to all broker-dealers and investment advisers because the requirements involved are for the protection and benefit of Wisconsin customers of those firms. All Wisconsin customers of securities broker-dealers and investment advisers are entitled to the public investor protection benefits of the licensing recordkeeping and rule of conduct requirements, irrespective of the size of the firm providing the securities services. Under the rule revision procedure of the Division of Securities, a copy of the proposed rule revisions is mailed to each broker-dealer licensed in Wisconsin, as well as to each investment adviser licensed or notice-filed in Wisconsin, notifying them of the proposed revisions and soliciting written comments or attendance at the public hearing regarding the proposed rules
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
No reporting, bookkeeping, or other procedures applicable to broker-dealers or investment advisers were added in this rulemaking package. Rather, several existing broker-dealer and investment adviser requirements were either repealed or relaxed in the following respects: (i) filing deadlines for broker-dealers and investment advisers to report branch office openings and changes of address were extended; and (ii) the licensing requirement that every broker-dealer must appoint a designated supervisor was repealed, together with the related examination requirement.
Contact Person
A copy of the full text of the proposed rule revisions and fiscal estimate may be obtained from:
Randall E. Schumann (608) 266-3414
Legal Counsel for the Division of Securities
Department of Financial Institutions
345 West Washington Avenue, 4th Floor
P. O. Box 1768
Madison, WI 53701
Notice of Hearing
Health & Family Services
