Staff time required
DATCP estimates that it will use approximately 0.8 FTE staff to develop this rule. This includes time required for investigation and analysis, rule drafting, preparing related documents, coordinating advisory committee meetings, holding public hearings and communicating with affected persons and groups. DATCP will use existing staff to develop this rule.
Financial Institutions - Securities
Subject
Wisconsin investment adviser licensing rules relating to custody of customer funds and/or securities.
Description of policy issues and comparison to federal regulations
Objective of the rules. The objective of the rules is the replacement of Wisconsin's existing Securities Law rule requirements applicable to Wisconsin-licensed investment advisers that have custody of customer funds and/or securities, with the proposed final amended rules on that subject recently developed by the North American Securities Administrators Association (“NASAA"). In the paragraphs following below is a summary of relevant background information regarding the rule proposal.
Current rule DFI-Sec 5.035, Wis. Adm. Code, under the Wisconsin Securities Law sets forth the regulatory requirements for state-licensed investment advisers who have custody of customer funds or securities. In 1999, NASAA previously developed amended Model Investment Adviser Custody Rules that could be used by any state jurisdiction in connection with their regulation of state-licensed investment advisers. (Wisconsin's current rule DFI-Sec 5.035, amended most recently in 2000, incorporated some of the elements of the NASAA Model Rule.)
Recently, the U.S. Securities & Exchange Commission adopted for effectiveness on September 25, 2003, amendments to the federal custody rule under the Investment Advisers Act of 1940 applicable to federally registered investment advisers. However, pursuant to the National Securities Markets Improvement Act of 1996, such federal changes are not applicable to investment advisers licensed solely in state jurisdictions.
The amended SEC rule for the first time defines “custody" and requires federally registered advisers having “custody" to maintain client funds or securities with a "qualified custodian." Because the present NASAA Model Rules were drafted based on the predecessor federal rules that did not contain a definition of custody, the September 2003 federal custody rule changes necessitated changes in the NASAA Model rules to provide needed uniformity on that issue between the regulation of federal-registered and non-federal registered investment advisers, as well as to provide equivalent levels of investor protection.
Accordingly, the NASAA Investment Adviser Regulatory Policy and Review Project Group was charged with developing amendments to the NASAA Custody Rules to bring them into alignment with the September 2003 federal custody rule. That Project Group has completed its development of needed amendments to the NASAA Custody Rules, and those amendments are to be voted upon for adoption by the NASAA state member jurisdictions at the NASAA Annual Spring Conference in Washington D.C. on April 18, 2004. In the event the NASA membership votes to adopt the amended NASAA Custody Rule, the Division of Securities will move forward with this rule proposal.
Policy analysis
The NASAA Project Group determined that amendments were required to five NASAA Model Rules pertaining to Custody. Accordingly, substantive amendments were made to the Asset Audit Rule [Rule 102(e)(1)-1], a books and records-related rule [Rule 203(a)2], and to the Minimum Financial Requirements for Investment Advisers rule [Rule 202(d)-1]. Less substantive amendments were made to a separate rule regarding bonding requirements [Rule 202(e)-1, and an Unethical Practices provision [Rule 102(a)(4)-1]. The proposed final amended NASAA Model Custody Rule incorporates the changes to all five of those rules.
Statutory authority
Staff time required
Estimated time to be spent by state employees to develop the rule--20 hours.
Natural Resources
Subject
The Department is proposing a revision to ch.
NR 410 that will specify an increase in asbestos permit exemption and inspection fees. The rule will also create a fee for all costs that the department incurs for laboratory testing for nonresidential asbestos demolition and renovation projects. These fees were approved in the fiscal year 2003-2005 budget. The proposed revision does not address any existing or proposed federal regulations.
Policy analysis
Asbestos is a known carcinogenic substance that was widely used in building construction materials. The DNR has been delegated by the US EPA to enforce the Asbestos NESHAP regulation as it applies to nonresidential building demolition and renovation projects. The asbestos program fee increase will provide the funding necessary to support compliance efforts and develop an electronic notification system. The Governor's office has requested that laboratory analysis fees be collected to reimburse the Department for the cost incurred during a compliance inspection. Historically these costs have been deducted from the total fees collected.
Stakeholder Involvement: The Wisconsin Occupational Health laboratory (WOHL) will be consulted in developing a fee collection process. Building owners, asbestos abatement contractors, demolition contractors, environmental consultants, the public and others in the regulated community will be addressed through the public comment process.
Staff time required
The Department will need approximately 500 hours of total staff time.
Natural Resources
Subject
Rules pertaining to the implementation and enforcement of deer baiting and feeding regulations.
Policy analysis
Recently signed legislation requires the department to promulgate rules that regulates the baiting and feeding of deer within the parameters established in the legislation.
In 2003, the Board supported the department's position that deer baiting and feeding should be banned statewide to eliminate a potential risk by which CWD and other infectious diseases (such as Bovine TB) could be spread. The rule that would have banned baiting and feeding of deer statewide was suspended. As a result, the department had to draft an emergency rule which was adopted by the NRB that banned baiting and feeding in counties within a CWD zone and in any county within 10 miles of a captive or wild animal that tests positive for TB or CWD. The legislation, which these rules will clarify, allows deer baiting and feeding to be banned in the counties identified in the emergency rule and limits baiting and feeding to two gallons per site in the remainder of the state.
All citizens in the state of Wisconsin are affected or have an interest in this legislation and the associated rules. Specifically impacted are deer hunters, landowners, and wildlife watchers.
Comparison to federal regulations
Provided state rules and statutes do not relieve individuals from the restrictions, requirements and conditions of Federal statutes and regulations, the regulation of hunting and trapping of native species has been delegated to state fish and wildlife agencies. No federal regulations regarding baiting and feeding of deer on non-federal lands have been drafted or implemented. Additionally, none of the proposed rules exceed the authorities granted the states in
50 CFR 10.
Statutory authority
Staff time required
Approximately 302 hours will be needed by the department.
Veterinary Examining Board
Subject
Continuing education requirements for veterinarians and veterinary technicians.
Objective of the rule. Creating rules to specify the requirements for continuing education sufficient to ensure competency of veterinarians and veterinary technicians in the practice of veterinary medicine, including the use, handling, distribution, and disposal of pesticides.
Policy analysis
The goal of continuing education is to keep the licensee current in the profession. Twenty-four regulated professions currently have continuing education requirements. The Department supports continuing education requirements for veterinarians and veterinary technicians and other professionals as an effective, proactive means to prevent public harm.
2003 Wisconsin Act 103 prohibits the Veterinary Examining Board from renewing a veterinary license unless the applicant certifies that he or she has completed 30 hours of approved continuing education programs or courses during the preceding 2-year licensure period for veterinarians and 15 hours for veterinary technicians.
Evidence of continuing education completed by licensees during the preceding 2-year certification or licensure period must be submitted by veterinarians and veterinary technicians.
Comparison to federal regulations
None. Establishing continuing education requirements and monitoring for compliance for veterinarians is a regulatory activity undertaken by the individual states.
Statutory authority
Staff time required
250 hours.
