Scope statements
Employee Trust Funds
Subject
ETF 20.25 specifies that the Wisconsin Retirement System fixed annuity dividends and variable annuity adjustments based on surpluses and/or deficiencies in the annuity reserve shall be effective on April 1 of each year. The proposed rulemaking would change the effective date of these annuity changes to March 1 of each year. The proposed rulemaking will also make changes related to prorating dividends under s.
ETF 20.35, reducing the minimum percentage by which an annuity can be adjusted.
Policy analysis
Objectives of the rule. The proposed amendment would result in the investment returns for the funds in the annuity reserve being distributed more quickly and equitably to Wisconsin Retirement System annuitants.
When the rule specifying the effective date of annuitant dividends was promulgated, an April 1 effective date was administratively reasonable. However, improved automation of both calculating and distributing the fixed and variable dividends would now make it feasible to make the annuitant dividend adjustments a month earlier, and to calculate and distribute the dividends in smaller increments. This is desirable both from an equity and customer service perspective.
Policy Alternatives to the Proposed Rule
The alternative to promulgating this rule would be that annuitant dividends would continue to be granted effective April 1 of each year, and distribution of investment returns would continue to be delayed unnecessarily.
Statutory authority
Staff time required
The Department estimates that state employees will spend 5 hours developing this rule.
Health and Family Services
Subject
The Department proposes to create a new chapter of rules, HFS 109, that addresses SeniorCare, a new prescription drug assistance program for Wisconsin residents who are 65 years of age or older and who meet the program's eligibility criteria.
Policy Analysis
The high cost of prescription drugs has been recognized as a problem in Wisconsin and nationwide. These high costs are especially burdensome on the elderly, many of whom live on a fixed income. Through
2001 Wis. Act 16, Wisconsin has addressed the problem those increasingly high costs pose to the elderly. The administrative rules will address issues associated with operating the program, including:
• the covered prescription drugs;
• how the Department will determine household income for the program's eligibility determination;
• how the Department will monitor compliance by pharmacists and pharmacies; and
• mechanisms for preventing fraud and abuse.
To the extent appropriate, the Department intends to draft the proposed rules to parallel the prescription drug provisions of the existing Medicaid rules in chapters HFS 101 to 108.
The Department intends to develop the program's administrative elements in consultation with an advisory committee composed of representatives of physicians, counties, seniors and pharmacies.
Statutory authority
The Department's authority to promulgate these rules is under s.
49.688, Stats., which was established by
2001 Wis. Act 16, and s.
227.11 (2) (a). Stats.
Staff time required
The Department estimates that it will take approximately 120 hours of staff time to draft the proposed ch.
HFS 109 SeniorCare rules.
Insurance
Subject
Objective of the rule. To propose modifications to s.
Ins 3.46 (13), Wis. Adm. Code, amending commission compensation limitations to permit reasonable compensation to agents for proper long-term care policy replacements.
Policy analysis
The current rule was promulgated to protect consumers from inappropriate long-term care insurance policy replacements through the use of high commissions. Prior to the current rule, agents could be rewarded financially for inappropriately or unnecessarily replacing existing long-term care insurance policies. Due to positive product development, the commission limitations contained in the current rule may have resulted in the unwillingness of agents to suggest proper replacement policies to consumers thereby limiting consumers' ability to upgrade their long-term care insurance coverage. The Office intends to review the current rule and determine if the rule can be modified without harm to consumer protections that currently exist.
Statutory authority
Staff time required
200 hours.
Natural Resources
Subject
Modifications to ch.
NR 428 - the ozone emission reduction rule.
Policy analysis
A rule to clarify provisions of ch.
NR 428 and to modify the emission trading provisions for NOx to meet minimal criteria established by US EPA. After submitting ch.
NR 428 as a SIP revision to US EPA, US EPA published guidance on minimal expectations for emissions averaging and trading programs. In order to obtain US EPA approval of Wisconsin's SIP revision under this guidance, ch.
NR 428 needs to be revised. The language in ch.
NR 428 needs to be modified to clarify and establish a minimal environmental benefit from averaging and trading and to establish a cap on mass emissions that is consistent with the emissions modeled in the attainment demonstration. After discussions with affected sources, two modifications to ch.
NR 428 are being proposed. First, instead of a 30-day rolling average, an ozone season limit will be established for sources that participate in emissions averaging and trading. Second, a new definition will be established for re-powered units. Re-powered units shall meet the requisite emission limits for new sources in ch.
NR 428, but will also be allowed to average and trade emissions consistent with the emissions cap and applicable emissions limits in ch.
NR 428. In addition, discussion with affected sources has revealed a need to define a coal to gas combustion process so an appropriate emission limit may be established.
Statutory authority
Staff time required
Approximately 300 hours will be needed.
Natural Resources
Subject
Modifications to ch.
NR 440 to incorporate new New Source Performance Standards (NSPS) and to update existing standards to reflect changes made by the US EPA.
Policy analysis
There are no policy issues to be resolved. The effort to update ch.
NR 440 is extensive and will affect many NSPS, representing a wide range of industries. All of the proposed rule changes are already in effect at the federal level.
Statutory authority
Staff time required
Approximately 750 hours will be needed.
Natural Resources
