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
NOTICE IS HEREBY GIVEN that, pursuant to s.
149.143 (2) (a) 2.,
3., and
4. and
(3), Stats., the Department of Health and Family Services will hold a public hearing to consider the amendment of ss.
HFS 119.07 (6) (b) (intro) and health care premium tables and 119.15, Wis. Adm. Code, relating to operation of the Health Insurance Risk-Sharing Plan (HIRSP), and the emergency administrative rules taking effect on the same subject on July 1, 2001.
Date & Time Location
July 31, 2001 Conference Room 638 A
Tuesday State Office Building
1:00 p.m.
1 West Wilson Street
Madison WI
The hearing site is fully accessible to people with disabilities. Parking for people with disabilities is available in the parking lot behind the building or in the Doty Street Parking Ramp. People with disabilities may enter the building directly from the parking lot at the west end of the building or from Wilson Street through the side entrance at the east end of the building.
Analysis Prepared by the Department of Health and Family Services
The State of Wisconsin in 1981 established a Health Insurance Risk-Sharing Plan (HIRSP) for the purpose of making health insurance coverage available to medically uninsured residents of the state. One type of medical coverage provided by HIRSP is the Major Medical Plan. This type of coverage is called Plan 1. Eighty-six percent of the 10,790 HIRSP policies in effect in March 2001 were of the Plan 1 type. Plan 1 has Option A ($1,000 deductible) or Option B ($2,500 deductible). The average premium rate increase for Plan 1 contained in these updated HIRSP rules is 3.4%. Rate increases for specific policyholders range from 0.0% to 4.9%, depending on a policyholder's age, gender, household income, deductible and zone of residence within Wisconsin. According to state law, HIRSP premiums must fund 60% of plan costs and cannot be less than 150% of the amount an individual would be charged for a comparable policy in the private market.
A second type of coverage provided by HIRSP is supplemental coverage for persons eligible for Medicare. This type of coverage is called Plan 2. Plan 2 has a $500 deductible. Fourteen percent of the 10,790 HIRSP policies in effect in March 2001 were of the Plan 2 type. The average premium rate increase for Plan 2 contained in these updated HIRSP rules is 3.4%. Rate increases for specific policyholders range from 0.0% to 4.9%, depending on a policyholder's age, gender, household income, deductible and zone of residence within Wisconsin. These respective rate increases for Plan 1 and Plan 2 reflect industry-wide cost increases and adjust premiums to a level that more accurately reflects actual claim costs.
The department through these rules is amending two sections of the HIRSP program administrative rules:
1.
The rules are updating HIRSP premium rates in ch.
HFS 119 in accordance with the authority and requirements set out in s.
149.143 (3) (a), Stats. The Department is required to set premium rates by rule. Rates must be calculated in accordance with generally accepted actuarial principles. Policyholders are to pay 60% of the costs of HIRSP. The HIRSP premium rate tables in ch.
HFS 119 are updated in accordance with these principles and requirements for the time-period beginning July 1, 2001.
2.
The rules are also updating the total HIRSP insurer assessments and provider payment rates in accordance with the authority and requirements set out in s.
149.143 (2) (a) 3. and
4., Stats. With the approval of the HIRSP Board of Governors and as required by statute, the Department of Health and Family Services approved a methodology that reconciles HIRSP program costs, policyholder premiums, insurance assessments and collected health care provider contributions for the most recent calendar year. The adjustments to the insurer assessments and the provider payment rates, contained in the updated HIRSP administrative rules for the time-period beginning July 1, 2001, are the result of this reconciliation process for calendar year 2000.
Identical HIRSP emergency rules will be published to take effect on July 1, 2001.
Contact Person
To find out more about the hearing or to request a copy of the proposed rules, write or phone:
Randy McElhose
Division of Health Care Financing
P.O. Box 309, Room B274
Madison, WI 53701-0309
(608) 267-7127 or, if you are hearing impaired, (608) 266-1511 (TTY)
If you are hearing or visually impaired, do not speak English, or have other personal circumstances which might make communication at the hearing difficult and if you, therefore, require an interpreter, or a non-English, large-print or taped version of the hearing document, contact the person at the address or phone number above. A person requesting a non-English or sign language interpreter should make that request at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Written comments on the proposed rule received at the above address no later than August 7, 2001 will be given the same consideration as testimony presented at the hearing.
Fiscal Estimate
These rules update HIRSP policyholder premium rates effective July 1, 2001. They also update HIRSP insurer assessments and provider payment rates for the 12-month period beginning July 1, 2001. These updates are being performed to reflect changing HIRSP costs, and in accordance with a statute-specified methodology, in order to offset program costs. Annual fiscal updates to the HIRSP rules generally take effect in July each year. The fiscal updates contained in these rules were developed by an independent actuarial firm and reviewed and approved by the HIRSP Board of Governors. By law, the Board is a diverse body composed of consumers, insurers, health care providers, small business and other affected parties.
It is estimated that the proposed changes will increase HIRSP program revenues by $21,016,500 in State Fiscal Year 2002, compared to State Fiscal Year 2001. This amount is the combined result of an increase of $9,719,414 in insurer assessments, an increased adjustment (levy) of $9,862,542 regarding provider payments, and an increase of $1,434,544 in policyholder premiums. This increase in HIRSP program revenue is expected to pay for a corresponding increase in HIRSP program expenditures for the payment of services, provided in State Fiscal Year 2002. As a result, the net fiscal effect is projected to be zero. These rule changes will not, by themselves, affect the expenditures or revenues of local government. There is no local government involvement in the administration of HIRSP.
Initial Regulatory Flexibility Analysis
The rule changes will affect HIRSP policyholders, the Department of Health and Family Services and the Department's fiscal agent. The rule changes will not affect small businesses as “small business" is defined in s.
227.114 (1) (a), Stats. Although the program statutes and rules provide for assessment of insurers to help finance HIRSP, no assessed insurer is a small business as defined in s.
227.114 (1) (a), Stats. Moreover, s.
149.143, Stats., prescribes how the amount of an insurer's assessment to help finance HIRSP is to be determined and, similarly, how the health care provider payment rate is to be calculated.
Notice of Hearing
Higher Educational Aids Board
NOTICE IS HEREBY GIVEN That pursuant to s.
39.395, Stats, the Higher Educational Aids Board will hold a public hearing to consider the creation of ch.
HEA 13, Wis. Adm. Code, relating to the administration of the Teacher Education Loan Program.
The Public Hearing will be held:
Date and Time Location
July 20, 2001 Senate Hearing Room #201SE
9:00 a.m. to 9:30 a.m. State Capitol
Madison, Wisconsin
The hearing is fully accessible to people with disabilities.
Analysis Prepared by the Higher Educational Aids Board
The
1997 Wisconsin Act 27 created s.
39.395, which provides for loans to Wisconsin residents enrolled in the teacher education program of the Milwaukee Teacher Education Center (MTEC). The Wisconsin Higher Educational Aids Board (HEAB) administers this program under s.
39.395. These would be the final administrative rules for this program. The student who receives the award must agree to teach in the Wisconsin school district operating under Chapter
119 of the Wisconsin State Statutes, First Class School System. For each year the student teaches in an eligible school district, 50% of the loan is forgiven. If the student does not teach in an eligible district, the loan must be repaid at an interest rate of 5%. There are provisions for a maximum and minimum award amount, an application process, loan forgiveness, terms of repayment, and deferment of loan repayment for borrowers. The proposed administrative rules will not affect expenditures of State funds for the Teacher Education Loan Program.
Statutory Authority
Fiscal Estimate
The proposed rules cause no alterations in the present allocation of funds so there is no fiscal impact.
Contact Person
To find out more about the hearing or request copies of the proposed rules, write, call or e-mail:
Jim Buske
Higher Educational Aids Board
131 West Wilson Street, P.O. Box 7885
Madison, WI 53707-7885
608) 267-9865
Written Comments on the proposed rules received at the above address no later than July 13, 2001 will be given the same consideration as testimony present at the hearing.
Initial Regulatory Flexibility Analysis
The proposed rules concern a student financial aid program and have no affect upon small business in Wisconsin.
Notice of Hearing
Higher Educational Aids Board
NOTICE IS HEREBY GIVEN That pursuant to s.
20.005, Stats, the Higher Educational Aids Board will hold a public hearing to consider the creation of ch.
HEA 14, Wis. Adm. Code, relating to the administration of the Teacher of the Visually Impaired Loan Program.
