Rules published with this register and final regulatory flexibility analyses
The following administrative rule orders have been adopted and published in the February 29, 2004, Wisconsin Administrative Register. Copies of these rules are sent to subscribers of the complete Wisconsin Administrative Code and also to the subscribers of the specific affected Code.
For subscription information, contact Document Sales at (608) 266-3358.
Financial Institutions - Credit Unions
(CR 02-133)
An order affecting ch. DFI-CU 73, relating to annual audits and verification of accounts by state-chartered credit unions. Effective 3-1-04.
Summary of Final Regulatory Flexibility Analysis
Pursuant to s. 227.19 (3m), a final regulatory flexibility analysis is not required.
Summary of Comments by Legislative Review Committees
No comments were received.
Health and Family Services
(CR 03-080)
An order affecting ch. HFS 15, relating to assessments on occupied, licensed beds in nursing homes and intermediate care facilities for the mentally retarded (ICF-MR). Effective 3-1-04.
Summary of Final Regulatory Flexibility Analysis
The rule changes will affect about 10 facilities that may be considered small businesses as “small business" is defined in s. 227.114 (1) (a), Stats. However, the department is not making any exception for those entities in the proposed rule because federal uniformity clauses do not allow exceptions for such assessments.
Summary of Comments by Legislative Review Committees
No comments were received.
Natural Resources
(CR 03-050)
An order affecting chs. NR 104 to 106, and 210, relating to the regulation of discharges of ammonia to surface waters of the state and relating to other minor corrections to errors. Effective 3-1-04.
Summary of Final Regulatory Flexibility Analysis
It is not expected that this rule will have a direct impact on small businesses. Small businesses may handle their wastewater in a variety of ways.
Summary of Comments by Legislative Review Committees
The rules were reviewed by the Assembly Committee on Natural Resources and the Senate Committee on Environment and Natural Resources. No requests for modifications were received.
Natural Resources
(CR 03-063)
An order affecting s. NR 140.10 Table 1, relating to groundwater quality standards. Effective 3-1-04.
Summary of Final Regulatory Flexibility Analysis
The department does not believe that the proposed rule will have a significant economic impact on a substantial number of small businesses. The compliance and reporting requirements in ch. NR 140 are not changed by the proposed amendments. If a groundwater quality standard is exceeded, the owner or operator of a facility, practice or activity, including any small business, must report the violation tot he appropriate regulatory agency. The type of small businesses that are typically impacted by ch. NR 140 include dry cleaners, small manufacturers, agricultural cooperatives, farmers, underground storage tank owners, small solid waste disposal facilities, small wastewater treatment operations, as well as others. In effect, any small business that has groundwater quality standards listed in ch. NR 140 is responsible for responding to the release consistent with the requirements of ch. NR 140.
Summary of Comments by Legislative Review Committees
The rules were reviewed by the Assembly Committee on Natural Resources and the Senate Committee on Environment and Natural Resources. No requests for modifications were received.
Public Service Commission
(CR 03-099)
An order affecting ch. PSC 135, relating to natural gas safety. Effective 3-1-04.
Summary of Final Regulatory Flexibility Analysis
Natural gas utilities may experience modest increases in the cost of complying with new pipeline safety rules due to increased requirements for operator qualifications. The proposed rules will have no effect on small business.
Summary of Comments by Legislative Review Committees
No comments were received.
Transportation
(CR 99-135)
An order affecting chs. Trans 138 and 139, relating to dealer facilities, records and licenses; and motor vehicle trade practices. Effective 3-1-04.
Summary of Final Regulatory Flexibility Analysis
This proposed rule will have little net effect on small businesses. On the one hand, business activities of dealers are improved by some streamlined requirements; on the other hand, disclosures of sales practices are required to provide adequate consumer protection. Specifically:
1. Amendments that clarify that out-of-state dealers who negotiate sales with Wisconsin residents in Wisconsin and deliver the vehicles in this state are subject to Wisconsin dealer licensing requirements will impact small businesses. Small business dealerships in other jurisdictions will be required to become licensed in Wisconsin and follow Wisconsin reporting and trade practice law for sales in Wisconsin. Small dealer businesses in Wisconsin will be affected in that they will be competing on equal regulatory ground with dealers from other jurisdictions that initiate, negotiate and conclude sales in Wisconsin but whose offices are outside the state boundaries.
2. Changing the definition of a “new" vehicle to allow any number of miles for manufacturer tests, pre-delivery test, dealer exchange or delivery, plus up to 200 miles for any other purpose (including the purchasing consumer's test drive) will impact small businesses. This change will require dealers to keep track of reasons for which each new car on its lot is driven and the number of miles driven. It will, however, enable those dealers to sell as “new" some vehicles which prior law would have required be sold as “used."
3. Exempting motorcycles from the requirement of displaying the Wisconsin Buyer's Guide label on the motorcycle will impact small businesses. This provision will reduce small business costs associated with protecting and/or replacing labels as is required under current law; however, requiring that the label be shown or provided to the consumer before a contract becomes binding creates a new function for businesses not displaying the label on the vehicle to perform. The dealer community, however, has asked for this change in law.
4. Requiring U.C.C. financing statements be filed when a dealer takes a car on consignment purchased by the consignor for purposes other than personal, family or household purposes does impact small businesses. The law imposes a burden of filing U.C.C. financing statements on dealers. Conversely, it protects small business owners who consign vehicles for sale through dealers. Because the law exempts vehicles purchased by the consignor for personal, household or family purposes, and the department believes most consignment vehicles will fall into that category, the department believes the impact of this rule change will be minimal.
5. Permitting dealers to accept a more than one offer to purchase a vehicle when an accepted offer is already pending, and to specify required disclosures to the consumer whose offer is subject to an earlier pending offer will impact small business dealers. This provision will allow dealers more flexibility in structuring transactions. Moreover, it provides a regulatory framework that protects consumers from a practice that is already widespread by requiring dealers to provide clear disclosure to consumers as to the status of their offers.
6. Permitting dealers to print a new contract to replace one when amendments are being made will save time for small businesses by allowing dealers to printout a new computer generated copy of a contract rather than having to handwrite in multiple contract changes.
7. Giving auctions 14 rather than 12 days to provide clear title before a dealer can rescind a purchase will ease administrative burdens on small business auctions.
8. Prohibiting misleading consumer loan application practices made possible by artificial adjustments to the price of a vehicle will require dealers to specify true prices and discounts on the purchase contract. This will protect consumers from misleading consumer loan practices, will help dealers by assuring that the vehicle loan will more likely be made and the purchase will close, and does not create a regulatory burden on small business.
9. Permitting dealers to provide a total cash price for a vehicle on the face of the motor vehicle purchase contract and to incorporate by reference a computer printout or other document, signed by the buyer that itemizes the components of that price will reduce dealer paperwork while providing the same consumer protection. Therefore this change will reduce regulatory burdens on small business dealers.
10. Regulating adjustments to the amount due on delivery when a lien pay-off is an estimate will protect consumers from contract obligations that they cannot meet, while providing dealers with a mechanism to close a sale when exact payoff amounts are unknown. This will reduce regulatory burdens on small business dealers.
11. Allowing a consumer to rescind a contract without penalty when a rebate conditioned on consumer or vehicle eligibility is unavailable at the time of delivery. This provision provides necessary consumer protections for sales involving rebates and does not increase regulatory burdens on small business dealers.
12. Requiring dealers to pay off loans on a trade-in vehicle within 14 days of acquiring the vehicle protects consumers from overdue fees and penalties that accrue if a loan is not promptly paid off and does not create a regulatory burden on small business dealers.
13. Requiring a dealer either (a) to cancel a purchase contract within 7 days of its execution if the credit terms disclosed in the contract cannot be obtained for the customer or (b) be bound to delivery of the vehicle on those terms will result in dealers occasionally having to finance vehicle purchases. It is balanced, however, against the fact that until the contract is cancelled, the buyer cannot contract to purchase a different car just in case the dealer does decide to finance their purchase of the original vehicle. This provision requires the dealer to make a decision on financing for the vehicle promptly and to advise the consumer of that decision. While it may create a burden on small dealerships that miss the deadline, it will protect other small businesses that contract to purchase vehicles from dealers and who are not provided with an answer as to financing availability promptly.
14. Specifying time periods a dealer must wait for a consumer to accept or reject proposed credit terms, should be a benefit to small business dealers by dealer cost situation by removing uncertainty as to purchase consummation.
15. To clarifying that a dealer may cancel a purchase contract by a date specified in the contract if the contract is subject to the consumer obtaining acceptable financing of the consumer's choice, and the consumer does not notify the dealer in writing that financing has been secured will eliminate a regulatory burden in current law. This provision reduces dealer uncertainty as to whether a sale will close. To protect all parties, the change in law requires dealers and consumers to agree in contract to a date.
16. Excluding audio equipment and molding damage when calculating whether a new vehicle has been damaged to the extent of more than 6% of its value when that equipment is replaced with identical manufacturer's original equipment will not impact small businesses.
17. Clarifying that a dealer may complete a purchase contract for a vehicle without inspecting the vehicle and disclosing its defects if the dealer is not required to inspect the vehicle or provide a disclosure reduces small business dealer costs without impacting consumer protection to consumers.
18. Restoring warranty disclosure requirements to the rule will restore a provision of law that was inadvertently removed from the administrative code. This provision will not impact small business dealers because it does not reflect a change in dealer practices or enforcement.
With regard to each policy change described above that may increase burdens on small businesses, the Department has considered establishing less stringent compliance or reporting requirements, less stringent schedules, consolidation or simplification of reporting requirements, and exempting small businesses. The Department believes that it is of paramount importance that consumer protections remain the same among motor vehicle dealers regardless of the size of the dealership. Exempting small dealerships from consumer protection laws would invite abuse by small dealers.
Summary of Comments by Legislative Review Committees
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Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.