Scope statements
Financial Institutions-Securities
Subject
Rules relating to banks selling certificates of deposit of third-party financial institutions.
Objective of the rule. The Division currently has administrative rules in s.
DFI-Sec 4.10 (1) to
(4) entitled “Bank Agency Transactions." That series of rules sets forth the requirements to be met for a bank, savings institution or trust company (“bank") to not have to be licensed as a broker-dealer in Wisconsin in order to execute transactions involving various types of securities as an agent for public investor-purchasers or sellers of the securities.
Currently, when a bank sells its own certificates of deposit (“CDs") to purchasers, such does not trigger the Wisconsin securities broker-dealer licensing requirements. However, when a bank sells CDs of third-party financial institutions, such sales activities do not come within current Wisconsin statutory definitional exclusions or current administrative rules establishing exclusions from broker-dealer licensure for banks involved in effectuating securities transactions as agent for investors. As a result, Wisconsin banks cannot engage in this activity, and Wisconsin investors cannot purchase at their “home" bank the CDs of other financial institutions, unless and until an administrative rule with appropriate and necessary investor protections is in place to enable such. The proposed rules would create a new rule subsection under existing Bank Agency Transactions rule s.
DFI-Sec 4.10 to separately deal with the situation where the type of security involved in the transaction effectuated by the bank is a certificate of deposit issued by a third-party financial institution.
Because the securities involved in such transactions under the proposed rules would be federally-insured certificates of deposit in amounts not exceeding the $100,000 per investor FDIC insurance level (such that there is no risk of loss of principal to an investor), the entirety of the existing rules
under s. DFI-Sec 4.10 (1) to (4) would not be made applicable. Rather, in addition to those parts of rules s. DFI-Sec 4.10 (1) to
(4) that would be utilized, inasmuch as the securities involved are certificates of deposit, the proposed rules would include several of the specific requirements currently contained in the existing administrative rule s.
DFI-Sec 4.11 relating to sales to the public by securities broker-dealers of so-called “brokered certificates of deposit."
Policy analysis
Existing and new policies contained in the proposed rules include:
(1) Supervisory requirements to be met by the bank regarding persons involved in executing the CD transactions, which requirements correspond to existing requirements in rule s.
DFI-Sec 4.10 (1) (b) 2.
(2) Record-keeping requirements to be met by the bank relating to the CD transactions that correspond to existing requirements in s.
DFI-Sec 4.10 (2).
(3) Disclosure requirements to be met--applicable to general advertising materials as well as materials used individually with investors--that are derived from current “brokered certificates of deposit" rule subsections in s.
DFI-Sec 4.11 (1).
(4) The certificates of deposit involved in transactions under the rule may not exceed $100,000 per investor such that, due to the existence of FDIC deposit insurance up to that level, there is no risk of loss of principal to investors.
Statutory authority
Staff time required
Estimated time to be spent by state employees to develop the rule--20 hours. No other resources are necessary.
Health and Family Services
Subject
The Department proposes to modify ch.
HFS 45, relating to the licensing of family day care centers and ch.
HFS 46, relating to the licensing of group day care centers. Chapter
HFS 45 applies to centers caring for between 4 and 8 children, while ch.
HFS 46 applies to centers caring for 9 or more children. These modifications would: 1. Incorporate new statutory requirements under s.
48.67, Stats., for training of child care providers in the most recent medically accepted method of reducing the risk of Sudden Infant Death Syndrome.
2. Bring both chapters of rules into conformance with other legislation relating to Caregiver Background Checks and the Clean Indoor Air Act.
3. Revise the rules to reflect current generally accepted safety practice in child care.
4. Modify portions of ch.
HFS 45 to make those provisions consistent with ch.
HFS 46.
Policy analysis
With minor exceptions, the Department has not revised ch.
HFS 45, relating to licensing rules for family day care centers, since 1989. Since that time, several events have suggested or required the modification of ch.
HFS 45. First, in 1997, the Department created ch.
HFS 46, relating to licensing of group day care centers. Not surprisingly, these two chapters of rules address similar topics and, in the Department's judgement, should contain comparable requirements, including ones related to definitions, licensing procedures and penalties and sanctions. Second, since 1989, changes in the child safety practices standards have become generally accepted. For
example, cardiopulmonary resuscitation training for childcare providers has become standardized. Finally, 2001 Wisconsin Act 16 amended s. 48.67, Stats., to require that all child care centers licensed to care for children under 1 year of age must receive training in the most recent medically accepted practice to reduce the risk of Sudden Infant Death Syndrome.
Similarly, ch.
HFS 46 needs to be revised to reflect recent generally accepted child care practices standards in addition to
2001 Wis. Act 16.
In developing these rules, the Department will consult with the Department of Workforce Development's Office of Child Care, the agency responsible for developing rules for certified child care homes.
Statutory authority
Section
48.67 Wis. Stats.
Staff time required
About 120 hours of staff time to research, write and review the proposed changes to the licensing rules.
Health and Family Services
Subject
The repeal and recreation of ch.
HFS 57 relating to Group Foster Homes for Children.
Policy analysis
In Wisconsin, 121 group foster homes provide residence, care and services to children, adolescents and some young adults to age 19, if full-time in school and completing their high school education. The children, youth and young adults residing in group foster homes are under juvenile court jurisdiction and have one or more of the following conditions: emotional or behavioral disorders; drug, alcohol or other substance abuse problems; difficulty acquiring life skills; or a developmental disability.
Placements into group foster homes occur from youth correctional facilities and institutions, county human service or social service agencies and via the interstate compact for placement of children under s.
48.988 and s.
48.989, Stats.; or are made by courts or parents.
The Department is responsible under ss.
48.625,
48.66 and
48.67, Stats., for the licensure and supervision of group foster homes for children on the basis of requirements for issuance of a license and standards for operation of a group foster home. These requirements are set forth in ch.
HFS 57, Wis. Adm. Code.
HFS 57 has not undergone any significant revision since its original promulgation in 1976. The proposed rules seek to update ch. HFS 57 to bring it into compliance with current drafting standards, statutes and other rules and will add new provisions which support the intent of s. 48.67, Stats., to protect the health, safety and welfare of children.
While the current group foster home rule addresses areas related to personnel, care of children, physical plant and environment, the service needs of children and youth have changed considerably since the original promulgation of the group foster home standards in 1976. The complex treatment-related needs and level of services required by children and youth currently being placed in group foster homes necessitates a revision of licensing standards.
The new rule proposal will include requirements related to:
•
Minimum staffing levels and staff qualifications;
•
The roles and responsibilities of sponsoring agencies;
•
Caregiver background checks in accordance with s.
48.685, Stats.;
•
Child abuse and neglect reporting responsibilities in accordance with s.
48.981 (2), Stats.;
•
Admission criteria, individual service plan components and documentation and review standards;
•
Behavior management policies that specify appropriate and specific methods of behavior management, including the use of appropriate crisis intervention techniques;
•
Physical plant, safety and health of children and youth in care;
•
The provision of healthcheck services not provided by a private insurer and obtaining written consents for medical and emergency medical care;
•
Policies and procedures for discharge of residents that provide for preparation, aftercare and recommendations for post-discharge services;
•
Special provisions for group foster homes providing respite care services;
•
Special provisions for group foster homes licensed to care for custodial parents and expectant mothers (“Second Chance Homes");
•
Special provisions for group foster homes licensed to care for children under the age of six years;
•
Reporting serious incidents (including but limited to: death, serious illness or injury to a child; reportable abuse or neglect; serious incidents requiring law enforcement services; suicide attempts; outbreaks of communicable disease; significant physical plant damage) to the Department;
•
Patient rights under s.
51.61, Stats., and ch.
HFS 94, Wis. Adm. Code; which allow specific children's rights, protections and grievance procedures;
•
Provisions allowing for inspections, complaint investigations and enforcement actions by the Department.
Statutory authority
The Wisconsin Department of Health and Family Services is given authority to revise these rules in ss.
48.67 and in 227.11
(2) (a), Stats.
Staff time required
The Department anticipates taking about 18 months to develop and promulgate the ch.
HFS 57 rules. The Department estimates that approximately 2,500 hours of Department staff time will be necessary. Principal staffing will be provided by the Department's Division of Children and Family Services' (DCFS) Bureau of Regulation and Licensing (BRL) including the Bureau Director, the Child Welfare Program Specialist, the licensing supervisors and the licensing staff, with input from representatives from the Department's Office of Legal Counsel and other divisions.
The Department will form an advisory group with representation from the Department, group foster care providers and professional organizations. In addition, as the Department develops sections of the rules, the sections will be shared with representative groups of providers for review and comment and with regional and statewide forums and groups representing numerous stakeholders. These opportunities for public input would proceed and would be in addition to ch.
227 Stats., formal public hearings.
Health and Family Services
Subject
The Department proposes to repeal and recreate ch.
HFS 124, relating to standards for the construction, maintenance and operation of hospitals. The revisions will update the chapter to recognize changes in hospital service delivery and technology, reflect current federal requirements and reflect recent changes to ch.
50, Stats.
Policy analysis
Existing Department policies in ch.
HFS 124 need to be updated in a variety of areas to reflect current standards of hospital care and practice, federal regulations, recent changes to ch.
50, Stats., ch.
HFS 12, relating to caregiver background checks, forthcoming revisions to chs.
DOC 50,
51 and
52, and previously issued memos and waivers from the Department's Bureau of Quality Assurance. Through this rulemaking initiative, the Department anticipates proposing a wide variety of changes, including the following:
1. Updating definitions to reflect current use of terminology.
2. Clarifying the department's approval process and enforcement authority.
3. Updating requirements regarding discharge planning, patient rights, use of volunteers, post mortem examinations, tagging of bodies, cancer reporting, tuberculosis testing and control, medical records, pharmaceutical and clinical services, fire protection and critical access hospitals.
4. Requiring hospitals to develop and implement a Patient Safety Program.
5. Updating the construction plan review fee table to reflect current practice.
Statutory authority
Statutory authority to promulgate these rules is derived from s.
50.36 (1) and
(2) (b), Stats.
Staff time required
The Department estimates that it will take approximately 2 years and 1,280 hours of staff time to complete a draft of the rule. The extended timeframe will permit Bureau of Quality Assurance staff to develop and work with an advisory body of key external interested parties to discuss the existing ch. HFS 124 and assist with formulating the proposed new chapter of rules.
Insurance
Subject
Regarding s.
Ins 3.39 (34), Wis. Adm. Code, relating to Medicare Supplement Insurance Requirements.
Policy analysis
Objective of the rule. To implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act which was amended to comply with the Medicare, Medicaid and SCHIP Benefits Improvement and Protection Act (BIPA). The amendments clarify guarantee issue rights. In addition, the Office will be reviewing pertinent sections of
Ins. 3.39 and potentially modifying s. Ins. 3.39, Wis. Adm. Code, as they relate to time periods for underwriting and alternative benefits within products.
The majority of s.
Ins 3.39, Wis. Adm. Code has been drafted in compliance with the NAIC Model Acts. As the federal requirements frequently change, so too must the Model Act and s.
Ins 3.39. The amendment contained within the Model Act will bring Wisconsin in compliance with current federal regulation. There are no alternatives than to comply with the federal regulation.
Statutory authority
Staff time required
A small working committee of existing staff will be needed for the modifications. The modifications will take an estimated 200 hours for rule development.
Natural Resources
Subject
Creation of ch.
NR 169 regarding a dry cleaner environmental response fund program.
Policy analysis
2001 Wis. Act 16 included significant statutory language changes that will affect the implementation of the Dry Cleaner Environmental Response Fund Program. This is a funding program for responding to, investigating and remediating contamination caused by the discharge of dry cleaning chemicals. Chapter
NR 169, the rule for implementing this program, has been in place since February, 2000. Those rules were developed with a Dry Cleaning Rulemaking Advisory Group, comprised of several members of the Governor's Council, as well as other interested parties.
These rule revisions will focus on the statutory changes, prioritization of sites, as well as improvements to the contracting portion of the program. Where possible, streamlining and simplification will be incorporated into the rule.
Statutory authority
Staff time required
The Department will need approximately 500 hours.
Natural Resources
Subject
Revision of ch.
NR 150, Environmental Analysis and Review Procedures for Department Actions.
Policy analysis
Chapter
NR 150, the Department's rule guiding implementation of the Wisconsin Environmental Policy Act (WEPA) was last comprehensively updated in 1987. Significant changes have taken place since then with respect to the Department's statutory authorities and the extent to which the Department has incorporated the elements of the environmental analysis (WEPA) process into its various resource planning, management and permit review procedures. In addition, the Department has many more years of experience to help shape its understanding of the potential environmental effects and level of public interest attendant to its resource management and regulatory activities. These changes necessitate revisions to ch.
NR 150. A primary goal of the revision process will be to further streamline the Department's procedures to eliminating duplicative and unproductive work and increasing the Department's focus on cumulative and ecosystem level environmental effects.
Statutory authority
Staff time required
The Department will need approximately 250 hours.
Natural Resources
Subject
Ch.
NR 173 regarding establishment of the brownfields green space grant program.
Policy analysis
This rule describes the requirements for a new brownfields green space grant program. The 2001-2003 biennial budget authorized the Department to award $1 million in grants that will be given to local governments to remediate sites that will have a long-term public benefit, including the preservation of green space, the development of recreational areas or the use of a property by the local government. This rule will include details about the eligibility requirements, scoring criteria, application procedures, and other administrative requirements necessary to administer this grant program.
Statutory authority
Staff time required
The Department will need approximately 750 hours.
Public Instruction
Subject
Milwaukee Parental Choice Program (MPCP).
Policy analysis
•
Modify the current rule to reflect
2001 Act 16 changes to s.
119.23, Stats., relating to the Milwaukee Parental Choice Program.
•
Modify the current rule to better ensure that participating schools are safe and make it easier for parents to participate in the program.
•
Make technical modifications to the current rule.
2001 Wis. Act 16 modified provisions under s.
119.23, Stats., relating to the Milwaukee Parental Choice Program (MPCP). To reflect the statutory changes, Chapter
PI 35, would be modified to:
•
Change the date a private school must annually submit notice of its intent to participate in the program from May 1 to February 1.
•
Reduce payments from MPCP summer school by 40%.
Other changes would be made to better ensure that participating schools are safe and make it easier for parents to participate in the program, including
•
Creating optional open application periods for participating private schools starting in the 2002-03 school year.
•
Changing the dates student applications are due at the department.
In addition, the following technical modifications would be made to Chapter
PI 35:
•
Define in rule, rather than by cross-reference to statute, “pupils enrolled" and “membership."
•
Eliminate conflicting language related to the attendance standard that schools can meet to continue participation in the program in the following school year.
•
Clarify the language related to counting students for purpose of payment under the program and the requirement to return checks received by the school students not present on the count dates.
•
Modify references to the name of the program in the rule to make it consistent with the statutory name of the program.
•
The proposed rule would create optional open application periods during which participating private schools would accept MPCP student applications. Under this policy, participating private schools would report by February 1 of each year which of the optional open application periods the school will accept student applications. The uniform optional dates for accepting applications and reporting of this information will assist parents in exercising their option of participating in this program.
•
The proposed rule would better ensure that schools wishing to participate in the program are safe by stating that submission of temporary certificate of occupancy permits would not meet the safety requirements of this program.
Statutory authority
Staff time required
The amount of time needed for rule development by department staff and the amount of other resources necessary are indeterminable. The time needed in creating the rule language, itself, will be minimal. However, the time involved with guiding the rule through the required rule promulgation process is fairly significant. The rule process takes more than 6 months to complete.
Transportation
Subject
Objective of the rule. This rule making will amend Ch.
Trans 139 by removing the prohibition on service fees (“doc" fees).
Policy analysis
Currently, the rule prohibits motor vehicle dealers from charging a “processing" or “doc" (documentation) fee relating to a vehicle purchase for functions the dealer must perform prior to the vehicle's delivery. The lone exception to this rule [s.
Trans 139.05 (8) (b)] allows a dealer licensee who has contracted with the Department, in accordance with the provisions of s.
341.21, Stats., to charge a purchaser a fee in the amount contained in the contract for the dealer's services relating to the processing or distribution of an original or renewal registration or a certificate of title. This processing fee is the $17.50 “Electronic Title/Plate Filing Fee" charged in conjunction with the APPS (Automated Partners in Processing) on-site registration program.
The proposed policy change will eliminate the prohibition on “doc" fees, and allow a dealer to charge a reasonable fee for functions the dealer must perform prior to the vehicle's delivery, including: performing inspections, collecting and reporting fees and taxes, performing background checks on odometer history, filing registration and title on behalf of purchasers, and purchasing required forms. The proposed change would not impinge upon the dealer's ability to charge an optional processing fee in conjunction with the APPS program. Motor vehicle dealers are subject to a number of statutes and regulations. A processing fee is not required by law. Any rule change, including allowing a dealer to charge a customer a “doc" fee, would need to be consistent with the applicable statutes and regulations. This may include revising other rules and placing conditions, including full disclosure of the fee, upon a dealer charging a customer “doc" fees.
The policy alternatives are to eliminate the prohibition of service (“doc") fees, or to maintain the rule in its current form. Of the Wisconsin border states, Illinois, Michigan and Minnesota allow dealers to charge a “doc" fee, and Iowa law does not address “doc" fees. Allowing Wisconsin dealers to charge this fee will improve their competitive advantage. More importantly, it will allow dealers to more completely disclose the services for which consumers are charged in conjunction with the purchase of a motor vehicle.
Statutory authority
Staff time required
Approximately 100 hours, which represents the collective time expected to be spent by the Dealer Section and the Office of General Counsel.
Transportation
Subject
Objective of the rule. When reassigning ownership of a new motor vehicle which has not been previously titled or registered, ch.
Trans 154 currently requires the dealer to complete an odometer disclosure on a “conforming" odometer disclosure statement. This rule making will amend ch.
Trans 154 by replacing the existing requirement with the requirement that the odometer disclosure shall be recorded in the designated spaces provided on the manufacturer's document of origin when disclosing mileage that is actual. When the odometer reading is not “actual," a separate conforming document will be required. The odometer reading is not “actual" if that odometer reading differs from the vehicle's mileage. An odometer reading can be not actual for a variety of reasons, including an odometer calibration error, mileage in excess of the designed mechanical odometer limit, accident, fire, fraud, etc. However, most of these reasons for a not actual reading are uncommon to new cars.
Policy analysis
Currently, when reassigning ownership of a new motor vehicle which has not been previously titled or registered, dealers are required to complete the reassignment of ownership and odometer disclosure in the designated spaces on the manufacturer's document of origin. Because the document of origin does not normally include a “conforming" odometer disclosure statement, dealers are required to complete an additional disclosure on a separate “conforming" odometer disclosure statement which has been issued or approved by the department. Vehicle odometer disclosure requirements are based on the requirements promulgated by the federal odometer law. However, the federal odometer law does not require a “conforming" odometer disclosure statement when reassigning ownership of a motor vehicle which has not been previously titled or registered.
49 CFR s. 580.17 (b) states the following: “A transferor of a new vehicle prior to its first transfer for purposes other than resale need not disclose the vehicle's odometer mileage."
The proposed policy change will amend the current rule by removing the “conforming" disclosure requirement, of ch.
Trans 154.03 (2) (a) 1., on the document of origin, except in cases where an odometer change has occurred. The remaining provisions of s.
Trans 154.03 would remain unchanged.
The policy alternatives are to begin accepting odometer disclosures in the designated spaces on the manufacturer's document of origin, without requiring that disclosure to meet the definition of “conforming"; or to maintain the existing odometer disclosure requirements. One problem with the current rule is that by requiring a disclosure that is more strict than the federal requirement, you reduce consistencies with other states. It is in the best interest of all parties to establish a consistent and accurate mileage and ownership trail that is easy to use. The manufacturer's document of origin was specifically designed to facilitate ownership and odometer tracking in an effective and consistent manner. Adopting the policy of disclosing mileage on the manufacturer's document of origin, without requiring an additional “conforming" document, will increase interstate and intrastate consistency, will decrease redundancies created by recording the mileage on the manufacturer's document of origin and on a separate conforming document, will align the state law more closely with the federal law, and will promote goodwill and efficiency. Also, the disclosure on the manufacturer's document of origin is essentially conforming when disclosing actual mileage.
Statutory authority
Staff time required
Approximately 200 hours, which represents the collective time expected to be spent by the Dealer Section policy analyst, the Dealer Section Field Investigation Unit Supervisor, and the Office of General Counsel.
