Scope statements
Commerce
Subject
Objective of the rule. To update the Department's codes for user fees, credentials, flammable and combustible liquids, and other related rules to be consistent with associated changes that are currently being developed for ch.
Comm 47, which contains the Department's rules for awarding grants for cleanup of properties contaminated by petroleum product discharges.
Policy Analysis
Chapter
Comm 2 contains a schedule of all the fees charged by the Department in administering the PECFA program. Chapter
Comm 5 establishes the minimum standards for the qualifications and responsibilities of persons and businesses that are required or permitted to obtain licenses, certifications or registrations from the Department, relating to the PECFA program. Chapter
Comm 10 contains the Department's rules for storing and handling flammable and combustible liquids, and primarily addresses petroleum-based products.
The Department implemented ch.
Comm 47 in 1993 as a means of controlling PECFA program costs and establishing necessary administrative and regulatory procedures. The changes that are currently being developed for ch.
Comm 47 will update that code to be consistent with various recent statutory changes and to accommodate several administrative and process improvements. This update may identify several related changes that would then be helpful in chs.
Comm 2,
5,
10, and other Department codes relating to the PECFA program. These related changes may be developed through more than one rulemaking proposal.
The only feasible alternative to rule development at this point in time would be a temporary delay in the rulemaking process. This delay would reduce the public benefits that would otherwise be achieved through a comprehensive rule revision.
Statutory authority
Staff time required
The Department estimates approximately 200 hours will be needed to develop the rule changes. This time includes drafting the changes and processing them through public hearings, legislative review, and adoption. The Department will assign existing staff to develop the rule changes, and no other additional resources will be needed.
Health and Family Services
Subject
The Department proposes to develop a rulemaking order that modifies ch.
HFS 119 regarding the Wisconsin Health Insurance Risk-Sharing Plan (HIRSP). Modifications to ch.
HFS 119 need to reflect the annual actuarial update of HIRSP policyholder health insurance premiums, insurer assessments and provider payment rates for the period beginning July 1, 2002. These modifications are made in accordance with s.
149.143 (2) (a) 2. to
4., Stats.
Policy Analysis
The Department has a longstanding Health Insurance Risk-Sharing Plan (HIRSP) for medically at-risk citizens. The Department has regularly amended ch.
HFS 119 in the past (2001, 2000, 1999 and 1998). This proposed rulemaking order involves the annual HIRSP update for 2002.
The rule changes affect policyholder premiums, insurance assessments and provider assessments. The rule changes must be updated in accordance with current HIRSP costs and funding requirements, statutory requirements, generally accepted actuarial principles and actions taken by the HIRSP Board of Governors at its April 17, 2002 meeting. The health care insurance industry has been experiencing significant premium increases. There will be a significant increase in HIRSP policyholder premiums in order to reflect that fact, and consistent with s.
149.143 (1) (b) 1. a., Stats., that HIRSP premiums be set at 150% of industry standard risk rates. Provider reimbursement rates will also be reduced and insurer assessments increased, in order to comply with the statutory requirement that insurers and providers fund twenty percent of plan costs after General Purpose Revenue (GPR) is applied. The effect of the amended rule will be to ensure DHFS coverage of ongoing HIRSP costs for state fiscal year 2003. Without this annual update, HIRSP program costs will soon exceed program revenues.
Statutory authority
Staff time required
The estimated DHCF staff time and other resources needed to develop and promulgate these rules will be about 120 hours. Included in this estimate is the time required to make actuarial calculations, rule drafting and promulgation.
Natural Resources
Subject
Chapter
NR 165 pertaining to the Small Loan Program and ch.
NR 162 pertaining to the Clean Water Fund Program.
Policy Analysis
The main substantive change proposed is increasing the dollar limit on eligible Small Loan Program projects from $750,000 to $1,000,000 in recognition of increases in the State Trust Fund's loan limit and increases in project costs during the six years since ch.
NR 165 was last revised. The Bureau of Community Financial Assistance also proposes to incorporate ch.
NR 165 into ch.
NR 162 and to update the code for greater consistency, clarity, and simplicity.
Chapter
NR 165 contains rules for administering the Small Loan Program (SLP), which is a subprogram of the Clean Water Fund Program (CWFP). Under the SLP, municipalities receive subsidy payments to reduce the interest they pay on loans received from the Board of Commissioners of Public Lands (also known as the State Trust Fund) for eligible wastewater projects. The SLP offers municipalities a streamlined application process for small loans secured through a general obligation pledge and reduces Department administrative time for such loans. The amount of subsidy awarded may not exceed the amount a municipality would receive through a regular CWFP loan.
When ch.
NR 165 was last revised in 1996, the dollar limit for loans granted by the Board of Commissioners of Public Lands was $750,000. Both that dollar limit and the cost of wastewater projects have increased since then.
Regular CWFP loans for similar projects are administered under ch.
NR 162. That chapter was revised effective March 1, 2001. The revisions included incorporating as subchapters the old ch.
NR 161, relating to the CWFP's project priority system, and the old ch.
NR 163, relating to the CWFP's hardship subprogram. Those incorporations were made in part to provide greater clarity, simplicity, and consistency in the administrative code. Incorporating ch.
NR 165 into ch.
NR 162 as a subchapter would provide similar benefits.
Statutory authority
Staff time required
260 hours
Revenue
Subject
Sections
Tax 11.46,
11.65 and
11.87, relating to summer camps; admissions; and meals, food, food products and beverages. The objectives of the proposed rule are to:
• Reflect law changes relating to:
a. Restaurants' meals provided to employees.
b. Vending machine sales being considered sales for off-premises consumption.
c. Sales of and admissions to time-share properties.
• Reflect a change in department policy, to now exempt campgrounds' sales of certain food, food products and beverages to campers for consumption at their campsites.
• Clarify provisions relating to:
a. The taxability of admissions to campgrounds.
b. Sales of admissions to places of amusement or athletic events.
c. The transfer of food, food products and beverages to an employee for consideration.
• Update the presumed rate for lodging, based on the consumer price index, when no allocation is made between taxable and exempt receipts by a camp.
• List additional instances of nontaxable sales of admissions.
• Add a provision relating to when and where a sale of admissions takes place.
• Provide additional definitions relating to “meal," “sandwich" and “work hours."
Policy Analysis
Existing policies are as set forth in the rules. In addition to revised policies to reflect law changes, a new policy is being proposed, to exempt campgrounds' sales of certain food, food products and beverages to campers for consumption at their campsites.
If the rules are not changed, they will be incorrect in that they will not reflect current law or current department policy. In addition, the presumed rate for lodging will remain outdated, and the department will be unable to implement the new policy to exempt certain food, food product and beverage sales at campgrounds.
Statutory authority
Staff time required
The department estimates it will take approximately 80 hours to develop this rule order.
