Section
15.04 (1) (c), Stats., authorizes department heads to create and appoint any council or committee as the operation of the department requires. The Volume Cap Allocation Council was created by the department to assist in evaluating volume cap applications and to make recommendations to the department secretary on volume cap allocation. The council is advisory only in that the department secretary makes the final decisions on cap allocation.
The proposed rules eliminate the Volume Cap Allocation Council as part of the review and evaluation process for volume cap allocation for Industrial Revenue Bond financing. Elimination of the council will result in a more efficient approval process and will not eliminate any final decision-making entity.
Federal Comparison
There is no existing or proposed federal regulation that addresses the elimination of the Volume Cap Allocation Council.
State Comparison
An Internet search of adjacent states' rules found the following information relating to the volume cap allocation process.
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The Illinois Finance Authority administers the volume cap allocation program and uses a Project Review Committee to review applications and make recommendations to the Authority's Board.
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The Iowa Finance Authority administers the volume cap allocation program and does not use a review council/committee.
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The Michigan Department of Treasury, Local Audit and Finance Division administers the volume cap allocation program; there is no information regarding a review council/committee.
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The Minnesota Rural Finance Authority administers the volume cap allocation program and does not use a review council/committee.
Environmental Analysis
Notice is hereby given that the Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Initial Regulatory Flexibility Analysis
1. Types of small businesses that will be affected by the rules.
There are no types of small businesses that will be affected by the rules.
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
There are no reporting, bookkeeping and other procedures required for compliance with the rules.
3. Types of professional skills necessary for compliance with the rules.
There are no types of professional skills necessary for compliance with the rules.
4. Rules have a significant economic impaction small businesses.
Yes, rules submitted to Small Business Regulatory Review Board.
The proposed rules and an analysis of the proposed rules are available on the Internet at the Safety and Buildings Division Web site at
www.commerce.wi.gov/SB/. Paper copies may be obtained without cost from Roberta Ward, at the Department of Commerce, Program Development Bureau, P.O. Box 2689, Madison, WI 53701-2689, or Email at
rward@commerce.state.wi.us, or at telephone (608) 266-8741 or (608) 264-8777 (TTY). Copies will also be available at the public hearing.
The small business regulatory coordinator for the Department of Commerce is Carol Dunn, who may be contacted at telephone (608) 267-0297, or Email at
cdunn@commerce.state.wi.us.
Fiscal Estimate
The proposed rules have no effect on revenues or costs for state or local government in the administration and enforcement of chapter Comm 113.
The proposed rules have no fiscal effect on the private sector.
Notice of Hearing
Insurance
Notice is hereby given that pursuant to the authority granted under s.
601.41 (3), Stats., and the procedures set forth in under s.
227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting Chapter
Ins 5, Wis. Adm. Code, relating to administrative hearing procedures for OCI.
Hearing Information
Date: January 5, 2005
Time: 10:00 a.m., or as soon thereafter as the matter may be reached.
Place: OCI, 2nd Floor, 125 South Webster Street, Madison, WI
Written comments or comments submitted through the Wisconsin Administrative Rule website at:
https://adminrules.wisconsin.gov on the proposed rule will be considered. The deadline for submitting comments is 4:00 p.m. on the 14
th day after the date for the hearing stated in this Notice of Hearing.
Written comments should be sent to:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule 5
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
3. Explanation of the OCI's authority to promulgate the proposed rule: OCI has set standards for the conduct of administrative hearings it holds. The existing rule has been in existence since 1996 and this change is clarification of some specific parts of that rule.
4. Related Statutes or rules: See statutes interpreted in #1 above.
5. The plain language analysis and summary of the proposed rule: This rule identifies specific sanctions allowed by the statutes and in circuit court and reinforces that they are available for use in administrative proceedings where a party defaults, fails to comply with a subpoena or fails to comply with discovery orders. Those additional sanctions are striking the pleadings, awarding expenses, imposing a forfeiture and any other statutory sanction allowed. Since the existing rule referenced certain penalties and not others, questions were from time to time raised regarding whether other statutory sanctions could be applied. The changes also specifically reference that the ALJ may consider and grant orders for summary judgement.
The rule sets a standard of “excusable neglect" for a Respondent to obtain relief from their default. The rule specifically lists penalties for failing to comply with discovery orders including striking the pleadings, awarding expenses, ordering a forfeiture on the Respondent, taking the allegations as true without further proof or hearing. Since the state of Wisconsin has sovereign immunity, monetary penalties cannot be imposed against the state.
In addition, the current address listed in the rule or OCI is corrected.
6. Summary of and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule: There are no federal regulations which address Wisconsin administrative hearings.
7. Comparison of similar rules in adjacent states as found by OCI: Iowa: Section 17A.12 the presiding officer may enter a default decision or proceed to take evidence in the absence of the default party. If the defaulting party wishes to contest the default, they must show “good cause" for the default.
Illinois: Statutory section 750 ILCS 25/10 permits the administrative hearing officer to proceed to hear the case based on the testimony of the petitioner and other evidence and make a decision. The Respondent can attempt to contest the default by filing a motion within 14 days of the default order.
Minnesota: Rule sections 1400.6000 and 1400.8560 deal with default situations and both allow the ALJ to take all allegations as true without further proof and to enter an appropriate order based on those facts.
Michigan: MI Admin. Code R 28.4013 (2004) Rule 13. If a party fails to appear after proper service of notice, the department, if no adjournment is granted, may proceed with the hearing and make its decision in the absence of the party.
Indiana: Section 312 IAC 3-1-9 allows a Natural Resources Commission administrative law judge to enter a proposed order of default or proposed order of dismissal (Note: No provision could be found that specifically applied to insurance contested cases)
8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule: This rule identifies certain motions, penalties and other administrative provisions which the statutes specifically allowed. The existing rule referenced some, but not all of these. This rule amendment makes clear that all statutory sanctions apply.
9. Any analysis and supporting documentation that OCI used in support of OCI's determination of the rule's effect on small businesses under s.
227.114: Since the rule clarifies administrative procedures for Respondents who are in default or disobedient to orders issued by the administrative law judge, there is no significant effect on small businesses.
10. If these changes may have a significant fiscal effect on the private sector, the anticipated costs that will be incurred by private sector in complying with the rule: Not Applicable because there is no significant effect.
11. A description of the Effect on Small Business: None.
Phone: (608) 264-8110
Address: 125 South Webster St – 2nd Floor
Madison WI 53702
Mail: PO Box 7873, Madison WI 53707-7873
13. Place where comments are to be submitted and deadline for submission: The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in the Notice of Hearing.
Mailing address:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule 5
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule nnn
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53702
Initial Regulatory Flexibility Analysis
This rule does not impose any additional requirements on small businesses.
OCI Small Business Regulatory Coordinator
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266- 7843 or at email address
Eileen.Mallow@oci.state.wi.us
Contact Person
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet WEB site at
http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Services Section, OCI, at:
Inger.Williams@OCI.State.WI.US, (608) 264-8110, 125 South Webster Street – 2
nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Fiscal Analysis
For Rule Ins 5 relating to administrative hearing procedures for OCI. There will be no state or local government fiscal effect.
This rule will have no significant effect on the private sector regulated by OCI. If anything, this rule should slightly reduce OCI costs by securing compliance with discovery rulings by the ALJ. These sanctions should reduce slightly the time and effort it takes OCI to bring administrative matters to a conclusion. The only effect on private sector, regulated entities would be penalties for those entities that do not comply with valid discovery orders, default in a hearing being held involving that entity or not complying with other orders after an administrative proceeding has been commenced. The private sector entity may have sanctions imposed on them, including monetary penalties.
