The State of Michigan's website indicates that Michigan licenses residential builders and maintenance and alteration contractors. However, the qualifications for the license and its renewal do not appear to require the fulfillment of any educational obligations.
The State of Minnesota website indicates that Minnesota requires residential building contractor and remodeling companies to obtain a license. Each company must designate one individual as a qualifying person who must take the required examination and fulfill the 7-hours of continuing education required to renew the license.
8. Summary of Factual Data and Analytical Methodologies.
In developing the proposed rules the department reviewed the language of
2005 Wisconsin Act 200 together with the existing laws under ss.
101.63 and
101.654, Stats. and the existing administrative rules under s.
Comm 5.31. The department also received input from the statutorily-created Contractor Certification Council. The council's composition reflects a variety of organizations whose memberships include many types of small businesses. The department utilizes advisory councils to gather information on potential impacts in complying with both the technical and administrative requirements of its codes. A responsibility of council members is to bring forth concerns their respective organizations may have with the proposed rules, including concerns regarding economic impacts. (Copies of the council meetings summaries are on file in Safety and Building Division.)
The Contractor Certification Council is comprised of:
Craig Rakowski, Wauwatosa, Wisconsin Builders Association
Jay Statz, Middleton, National Association of the Remodeling Industry
Joseph Welch, Pewaukee, Wisconsin State Council of Carpenters
9. Analysis and Supporting Documents Used to Determine Effect on Small Business or in Preparation of Economic Impact Report.
The proposed rules implement the mandates imposed by
2005 Wisconsin Act 200. The Act establishes educational obligations for contractors who need to obtain building permits involving work on one- and two- family dwellings. Currently, a building permit is required for the construction of every new one- and two- family dwelling. The necessity to obtain a building permit for alterations and additions to existing dwellings is at the discretion of each municipality in terms when, if and for what type of work a building permit is required before starting the project. In light of this, the Act and the proposed rules potentially affect a wide variety of contractors and trades, including home builders and contractors, remodeling businesses and roofing contractors. The cost of the department's proposed annual contractor certification is $30. The renewal of the certification is contingent upon the holder obtaining at least 6 hours of continuing education. The continuing education, upon approval by the department, can be provided by anyone. The fee, if any, for a continuing education course or seminar is left to the discretion of the course/seminar provider. The department does not believe that the proposed rules will increase the effect on small businesses over that imposed by the Act.
An economic impact report has not been required pursuant to s.
227.137, Stats.
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
roberta.ward@wisconsin.gov, or at telephone (608) 266-8741 or (608) 264-8777 (TTY). Copies will also be available at the public hearing.
Environmental Assessment
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.
As required under
2005 Wisconsin Act 200 beginning on January 1, 2008 all certified contractors needing to obtain building permits to undertake work on a one- and two- family dwellings will have had to fulfill educational course work unless grandfathered. The renewal of their certifications will be contingent upon the fulfillment of continuing education obligations. The type of businesses affected by the Act and the proposed administrative rules include builders, remodelers and roofers.
2. Reporting, bookkeeping and other procedures required for compliance with the rules.
There are no reporting or bookkeeping 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 impact on small businesses.
No. Rules not submitted to Small Business Regulatory Review Board.
Fiscal Estimate
Under current rules the department issues dwelling contractor financial responsibility certifications to businesses and entities that obtain building permits to perform work on one- and two- family dwellings. The department is proposing to create a new separate certification, dwelling contractor qualifier, issued to an individual in order to fulfill the educational obligations established under
2005 Wisconsin Act 200. Currently, the department has issued 10,550 dwelling contractor financial responsibility certifications. It is anticipated that some contracting businesses and entities may desire to have more than one individual hold the qualifier certification. It is estimated that 10 percent of the businesses may employ this strategy. In light of this, the department estimates that it will issue approximately 11,600 qualifier certifications annually. The fee for the qualifier certification is proposed to be $30. This will generate $348,000 in annual revenue. The proposed rules will also decrease the fee for the dwelling contractor financial responsibility certifications by $5.00. This will decrease annual revenue by $52,000.
The department believes that the workload generated by issuing and administering the new qualifier certification can be absorbed into current staffing levels and functions.
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
carol.dunn@wisconsin.gov.
Notice of Hearing
Commerce
NOTICE IS HEREBY GIVEN that pursuant to ss.
101.02 (1) and
(15), and
101.122, Stats., the Department of Commerce will hold a public hearing on proposed rules under chapter Comm 67, relating to rental unit energy efficiency standards.
The public hearing will be held as follows:
March 15, 2007 Conference Room 3C
10:00 a.m. Thompson Commerce Center
201 West Washington Avenue
Madison
Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until March 29, 2007, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to Joe hertel, at the Department of Commerce, P.O. Box 2689, madison, WI 537701-2689, or email at
jhertel@commerce.state.wi.us.
This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Analysis
3.
Related Statute or Rule. None.
4.
Explanation of Agency Authority.
Under sections
101.02 (1) and
(15), Stats., the Department has authority to protect public health, safety, and welfare, at public buildings and places of employment, by promulgating and enforcing requirements for construction and maintenance of those facilities. Under section 101.122, Stats, the Department also has the responsibility to develop minimum energy efficiency requirements for rental units. The energy efficiency requirements must be met before the ownership of a rental unit may be transferred. Under section 101.122 (2) (e), the Department must review the administrative rules adopted under this section of the statutes every five years to determine whether new energy conservation technologies should be included under chapter Comm 67. Also, under s.
101.19 (1) (i), Stats., the Department may fix and collect fees for inspecting and certifying rental units as specified in s.
101.122, Stats., and the Department proposes to reduce the fees, which will more closely equal the cost of providing the services.
5.
Summary of Proposed Rules.
The last revision to chapter Comm 67 was in 1999 and included language in response to legislation. This current review and update includes a repeal and recreation of the requirements to improve clarity, revise the rules in accordance with the standard rule development format, reduce the number of department forms that are required to be submitted to show compliance with the code and reduce the fees, which will more closely equal the cost of providing the services.
The following are the major changes proposed in the revisions to chapters Comm 2 and Comm 67:
Modify the fees under chapter Comm 67 by eliminating the fees for application for exemptions, stipulations and waivers and adjusting the fee for certification stamps. These fee changes will offset program costs. The maximum fee for performing an inspection will also be eliminated. Private inspectors will establish their fees and the department will charge fees as specified under s.
Comm 2.04 relating to miscellaneous inspections and investigations. [ Comm 2.35]
Reorganize all of the requirements under Comm 67 by grouping them into subchapters relating to application, definitions, administration and enforcement, and technical provisions.
Eliminate the cost payback exemption because the minimum technical provisions are already based on achieving a 5-year cost payback and compliance with these requirements are now based on the life time of the building. Allowing an exemption from compliance with the code is not within the intent of the code. [Requirements formerly under s.
Comm 67.06]
Modify the definitions for consistent use under the chapter. [Comm 67.04]
Clarify the definition of “owner-occupied" by stating the owner must occupy a dwelling unit exclusively as the primary or secondary residence within the first year immediately after the date of transfer of the dwelling unit. It also clarifies the owner may not claim more than 2 residences. This change is being proposed to recognize owners, who may own another dwelling used as a summer or winter residence. [Comm 67.04 (17)]
Clarify the administration and enforcement requirements relating to issuance of certificates, waivers, stipulations and satisfaction of compliance. [Comm 67.06]
Clarify the 2-year time period granted for a waiver starts from the date the waiver is validated, and include a requirement that states a rental unit with an expired waiver may not be transferred. [Comm 67.06 (3) (b) 2.]
Clarify that an owner of a rental unit must bring the unit into compliance with the energy requirements no later than one year after the stipulation was validated. [Comm 67.06 (4) (a) 1.]
Clarify the stipulation requirements, and include an option that the owner may bring the rental unit into compliance using either the code in effect at the time the stipulation was issued or using the current code requirements. [Comm 67.07 (2) (b) 2. and 67.06 (4) (a) 3.]
Reword the issuance requirements for certificates of compliance and stipulations to include the filing requirements previously covered under section
Comm 67.08 (4) (g). [Comm 67.06 (2) and (4)]
Clarify the rules relating to insulation of box sills to permit foam plastic insulation to be used without the required thermal barrier. [Comm 67.11 (1) (c) and Table 67.11-B]
Clarify the rules relating to insulation of ducts and pipes to include vented attic spaces. Change the requirements relating to domestic hot water pipes to domestic water heater pipes, and require the insulation of only the supply pipes for noncirculating hot and cold water pipes in vented crawl spaces. [Comm 67.11 (1) (d) and Table 67.11-3]
6.
Summary of, and Comparison with, Existing or Proposed Federal Regulations.
An Internet-based search for “energy efficiency standards for rental dwelling units" in the Code of Federal Regulations (CFR) did not identify any existing federal regulations establishing energy efficiency requirements for the transfer of dwelling units used as rental property. However, it did identify the following existing federal regulation that awards grants to provide a weatherization assistance program to increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential expenditures, and improve their health and safety.
10 CFR 440 –
Weatherization Assistance for Low-income Persons
An Internet-based search for the referenced federal regulation of the 2003, 2004 and 2005 issues of the Federal Register did not identify any proposed changes to this regulation relating to the weatherization of dwellings owned by or occupied by low-income persons.
7.
Comparison with Rules in Adjacent States.
An Internet-based search of adjacent states' codes resulted in finding no similar code requirements for providing energy efficiency standards prior to the transfer of ownership of rental property. Minnesota, Michigan, and Iowa have energy conservation requirements for both commercial and residential buildings; however, these states do not require mandatory compliance with energy efficiency standards in existing rental units changing ownership.
Illinois does not have a statewide building code covering energy efficiency standards in rental units. In Illinois enactment of building codes is at the local municipal level.
8.
Summary of Factual Data and Analytical Methodologies.
In accordance with s.
101.122 (2) (e), Stats., the Department is required to review the rental unit energy efficiency rules every 5 years to determine whether there are any new energy conservation technologies that would impact these rules. In developing the proposed rules, the Department reviewed the current rental unit energy conservation requirements along with the energy requirements specified under chapter Comm 22, Energy Conservation of the Uniform Dwelling Code (UDC) and the latest requirements under the International Energy Conservation Code (IECC) and did not find any new technologies. The Department's review and assessment process involved the participation of an advisory council. The members of the Rental Unit Energy Efficiency Code Council represented home inspectors, realtor's association and apartment owners. (A listing of the Council members is provided at the end of this analysis.)
9.
Analysis and Supporting Documents used to Determine Effect on Small Business or in Preparation of Economic Impact Report
The rental unit energy efficiency rules impact any small business providing inspection services for compliance and any small business owning rental property that is proposed to be sold or transferred to a new owner where the rules under this chapter have not been applied prior to the transfer.
The Department believes the proposed rules would have no additional economic impact on the identified affected small business because no new technologies were identified and the existing technical rules were only clarified to improve enforcement and application. The administrative rules were also clarified to improve application and no additional reporting or bookkeeping requirements were developed. The cost to provide the additional insulation for ducts and pipes will have a minimal effect on small businesses. The fees for a stipulation and a waiver have been eliminated and the fee for a certification authorization stamp has been increased, and it is believed this change will provide cost savings to small businesses affected by these rules. An economic impact report as specified under s.
227.137, Stats has not been prepared.
10.
Effect on Small Business
The proposed rules should have a minimal effect on small business.
Council Members and Representation
The proposed rules were developed with the assistance from the Rental Unit Energy Efficiency Advisory Council. The members of that citizen advisory Council are as follows:
Name Representing
Rob Jens Apartment Assn. of South-Central WI
Tom McKenna WI Realtors Association
Kent Schwanke WI Association of Home Inspectors
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
roberta.ward@wisconsin.gov, or at telephone (608) 266-8741 or (608) 264-8777 (TTY). Copies will also be available at the public hearing.
Environmental Assessment
Notice is hereby given that the Department has prepared a preliminary Environmental Assessment (EA) on the proposed rules. The preliminary recommendation is a finding of no significant impact. Copies of the preliminary EA are available from the Department on request and will be available at the public hearings. Requests for the EA and comments on the EA should be directed to:
Joe Hertel
Division of Safety and Buildings
Department of Commerce
P.O. Box 2689
Madison, Wisconsin 53701
Telephone (608) 266-5649
or TTY (608) 264-8777
