Rule-making notices
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Controlled Substances Board in ss.
961.11,
961.16 and
961.19, Stats., and interpreting s.
961.20 (2), 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 2.28, relating to classifying dichloralphenazone as a schedule IV controlled substance under federal law.
Hearing Date, Time and Location
Date: April 3, 2002
Time: 9:15 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 April 17, 2002, 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 August 16, 2001, dichloralphenazone was classified as a schedule IV controlled substance under the federal Controlled Substances Act (CSA). Dichloralphenazone has not been so scheduled under the Wisconsin Controlled Substances act in Chapter
961, Wis. Stats. The objective of this rule-making order is to bring the treatment of this drug 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. Schedule IV controlled substances are listed in
21 CFR 1308.14. Section 1308.14 (c) lists chloral hydrate as a depressant. The first sentence of
21 CFR 1308.14 (c) states that the category of schedule IV depressants includes “any material, compound, mixture, or preparation which contains any quantity of" the substances listed in the section. Since dichloralphenazone is a compound containing chloral hydrate, it is likewise a schedule IV depressant. This forms the basis for the DEA action.
Text of rule
CSB 2.28 Addition of dichloralphenazone to schedule IV. Section
961.20 (2) (cs), 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
551.02 (3) (c),
551.31 (5) and
551.63 (2), Stats., the Division of Securities of the Department of Financial Institutions will hold a public hearing at 345 West Washington Avenue, 4th Floor Conference Room, at 10:00 a.m. on Wednesday,
May 15, 2002, to consider the adoption of administrative rules of the Division of Securities under the Wisconsin Uniform Securities Law relating to bank sales of certificates of deposit of third-party financial institutions.
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.
Summary Analysis Prepared by the Division of Securities
The Division currently has administrative rules in 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") not to 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 enacted to enable those sales activities to take place. The proposed rules [which also involve a renumbering of current DFI-Sec 4.10 (1) to (4) to be DFI-Sec 4.10 (1) (a) to (d)] would create a new subsection (2) under existing Bank Agency Transactions rule s.
DFI-Sec 4.10 to deal separately with this 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 scope of authority under ss.
551.02 (3) (c) and
551.31 (5), Stats., for rule-making on this subject is limited to sales activities by banks, savings institutions and trust companies (the entities specified under s.
551.22 (3), Stats.), the proposed rules cannot include savings and loan associations, savings banks or credit unions (which are entities separately listed under ss.
551.22 (4) and
(5), Stats.).
Because the CDs involved in such transactions under the proposed rules would be federally-insured certificates of deposit in amounts not exceeding the $100,000 per investor insurance levels under Federal Deposit Insurance Corporation provisions (such that there is no risk of loss of principal to an investor), the entirety of the existing rules under DFI-Sec 4.10 (1) to (4) is not made applicable. Rather, in addition to those parts of current rules s.
DFI-Sec 4.10 (1) to
(4) that will be utilized, the proposed rules include several of the specific requirements currently contained in existing administrative rule DFI-Sec 4.11 relating to sales to the public by securities broker-dealers of so-called “brokered certificates of deposit."
The components of the proposed rule include the following:
(1) Supervisory requirements to be met by the bank regarding persons involved in providing administrative services and executing the CD transactions, which requirements correspond to existing requirements in current 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 current rule 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 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.
A copy of the proposed rules 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 or annual fiscal effects; (ii) No long-range fiscal implications; (iii) 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:
Because the proposed rules are applicable only to banks, the standard small business considerations under 227.114 (1) (a), Stats., are not involved. Additionally, because all Wisconsin investors are entitled to the public investor protection benefits of the proposed rules, the rules do not differentiate in their applicability based on the size of the bank conducting the sales activities under the rules.
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
Under par. (d) of proposed new DFI-Sec 4.10 (2), banks making sales of the CDs of third-party financial institutions pursuant to the rule are required to make and retain for a three (3) year period, a record of CD purchases made. The rule provides that such record-keeping requirements can be satisfied by keeping copies of purchase applications and customer checks, or copies of confirmations from the issuing financial institution.
Copies of Rule and 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
