3. Michigan regulations do not require verbatim language or approval of language in the purchase contract or disclosure statements, unlike Wisconsin current or proposed regulations.
Minnesota:
1. Minnesota would consider a damaged rented or leased vehicle a “used" vehicle, similar to what DOT proposes in this rule making.
2. Minnesota regulations regarding advertising are unclear to DOT, as the Minnesota Department of Public Safety does not regulate advertising.
3. Minnesota regulations do not require verbatim language or approval of language in the purchase contract or disclosure statements, unlike Wisconsin current or proposed regulations.
Illinois:
1. Illinois would consider a damaged rented or leased vehicle a “new" vehicle, similar to Wisconsin's current rule.
2. Illinois would allow use of pricing guide, similar to what DOT proposes in this rule making.
3. Illinois regulations require documents to comply with specific state law, similar to Wisconsin's current rule.
Iowa:
1. Iowa would consider a damaged rented or leased vehicle a “used" vehicle, similar to what DOT proposes in this rule making.
2. Iowa Attorney General's office does not review advertising related to car price.
3. Iowa regulations do not require verbatim language or approval of language in the purchase contract or disclosure statements, unlike Wisconsin current or proposed regulations.
Summary of factual data and analytical methodologies
Most of the proposed provisions are already DOT policy. The following provisions are newly proposed:
1. Amend the ch.
Trans 137 definition of “used motor vehicle" to include rental or leased vehicles with 4,000 or fewer miles that have been damaged. The Department has received several inquiries during the past few years from rental and leasing companies that need to dispose of damaged vehicles. The Department has concluded that allowing this exception to the new vehicle definition, for purposes of needing a franchise to sell, will not adversely affect franchised motor vehicle dealers.
2. Amend ch.
Trans 139 to allow, instead of currently prohibit, the use of motor vehicle pricing guides (such as Kelly Blue Book or Edmunds guide) as price comparison in advertising used vehicle prices. This has been considered an unfair trade practice because price guides may not sufficiently account for vehicle condition. However, the Department recognizes that these pricing guides are readily accessible on the internet and in print, and consumers often make use of them. The Department proposes to couple allowing use of price guides with requirements for dealer disclosure of vehicle condition sufficient to protect a customer from making false inference about the vehicle's actual sales price and thus being taken in by false advertising.
3. Amend ch.
Trans 139 to clarify that if the dealer proposes to make changes to the warranty and service contract language in the Buyers Guide or in the Purchase Contract, the dealer shall send the proposed changes to DOT, which will reply within a certain time frame approving or denying the changes. The Department recognizes that the vehicle manufacturing industry now offers “manufacturer certified used vehicle programs," which carry certain warranties; and current ch.
Trans 139 does not sufficiently accommodate new industry practices. However, the Department proposal retains DOT authority to determine, on a case-by-case basis, an adequate disclosure to the consumer of warranty provisions if they differ from mandatory language in ch.
Trans 139.
Analysis and supporting documentation used to determine effect on small businesses
The Department bases the determination of effect on small businesses on comments, questions, and petitions and requests for regulation changes that the Department has received from motor vehicle dealers and their trade association, rental and leasing companies.
Initial Regulatory Flexibility Analysis
Most provisions are already in Department policy. For those that are not currently in policy, the proposals will ease regulatory requirements and costs on motor vehicle dealers and vehicle rental and leasing companies. The Department enforces statute and rules through periodic auditing of motor vehicle records, inspection of motor vehicle dealership facilities, and investigation of consumer complaints. The Department's Regulatory Review Coordinator may be contacted by e-mail at
ralph.sanders@dot.state.wi.us, or by calling (414) 438-4585.
Fiscal Estimate
The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands.
Anticipated costs incurred by private sector
The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.
Notice of Hearing
Workforce Development
NOTICE IS HEREBY GIVEN that pursuant to ss.
49.148,
49.153 (2),
103.005 (17), and
227.11 (2), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules revising chapter DWD 12, relating to W-2 sanction good cause exceptions and notice of payment reductions and affecting small businesses.
Hearing Information
May 15, 2008
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MADISON
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Thursday
1:30 p.m.
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G.E.F. 1 Building
Room A415
201 E. Washington Avenue
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Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in an alternative format will be made available on request to the fullest extent possible.
Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.
Copies of Proposed Rule and Submission of Written Comments and
A copy of the proposed rules is also available at
http://adminrules.wisconsin.gov. This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper copy of the rule or fiscal estimate by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written comments on the proposed rules received at the above address, email, or through the http://adminrules. wisconsin.gov web site no later than May 16, 2008, will be given the same consideration as testimony presented at the hearing.
Agency contact person
Analysis Prepared by the Department of Workforce Development
Statutory authority
Statutes interpreted
Related statute or rule
Explanation of agency authority
Section
49.153 (1), Stats., as created by
2005 Wisconsin Act 25, provides that before taking any action against a Wisconsin Works (W-2) participant that would result in a 20 percent or more reduction in the participant's benefits or in termination of the participant's W-2 eligibility, a W-2 agency must provide the W-2 participant with written notice of the proposed action and the reasons for the proposed action; make reasonable attempts to explain to the W-2 participant orally in person or by phone the reasons for the proposed action; and allow the participant a reasonable time to rectify the deficiency, failure, or other behavior to avoid the proposed action. Section
49.153 (2), Stats., provides that the Department shall promulgate rules that establish the procedures for the notice and explanation and that define “reasonable attempts" and “reasonable time" as used in s.
49.153 (1), Stats.
Section
49.148, Stats., provides that for every hour that a W-2 participant in a community service job or transitional placement fails to participate in an assigned activity without good cause, the participant's grant amount shall be reduced by $5.15. Good cause is to be determined by the W-2 financial and employment planner (FEP) in accordance with rules promulgated by the department. Good cause shall include required court appearances for a victim of domestic abuse.
Section
49.151, Stats., provides that a participant who refuses to participate 3 times in any W-2 employment position component is ineligible to participate in that component. Among other ways, a participant demonstrates a refusal to participate by failing to appear for an interview or an assigned activity without good cause as determined by the W-2 agency or voluntarily leaves appropriate employment or training without good cause as determined by the W-2 agency.
Plain language analysis
The proposed rule on notice of W-2 payment reductions provides that before taking any action against a participant that would result in a 20 percent or more reduction in the participant's benefits or in termination of the participant's eligibility to participate in Wisconsin Works due to noncooperation with W-2 program requirements, a W-2 agency shall provide to the participant written notice of the proposed action and of the reasons for the proposed action. The written notice of a 20 percent or more reduction in the participant's benefits shall be issued by the W-2 agency no later than the first business day following notification to the W-2 agency of participants subject to a potential 20 percent or more payment reduction. The notice of termination of W-2 eligibility shall be issued no later than 10 days prior to the end of eligibility.
Within 5 business days after providing written notice, the W-2 agency shall explain to the participant orally in person or by phone, or make reasonable attempts to explain to the participant orally in person or by phone, the proposed action and the reasons for the proposed action. Reasonable attempts means at least 2 attempts to contact the participant orally in person or by phone. The explanation by the W-2 agency will inform the participant which requirements were not met or which activities were missed that resulted in a 20 percent or more reduction or termination of eligibility; discuss the participant's reasons for not complying with participation requirements or not cooperating with other program requirements; explain the opportunity to present good cause for failing to participate or cooperate; and inform the participant of the right to appeal the agency decision, if necessary.
After providing the notice and the explanation or attempting to provide an explanation, the W-2 agency shall allow the participant a reasonable time to rectify the deficiency, failure, or other behavior to avoid the proposed action. For purposes of this paragraph, “reasonable time" means 7 business days after the oral notification or after the last attempt to make oral notification.
In addition, the Department proposes to amend the rule on good cause for failing to comply with W-2 participation requirements. The current rule provides that good cause for failing to comply with the W-2 participation requirements includes a required court appearance including a required court appearance for a victim of domestic abuse, unavailability of child care that is necessary to participate in required activities, and other circumstances beyond the control of the participant as determined by the FEP. The W-2 participant must provide timely notification of the good cause reason to the FEP.
The proposed rule adds the following circumstances as good cause for not complying with W-2 participation requirements:
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Lack of transportation with no reasonable alternative, as determined by the FEP. In determining the reasonableness of transportation alternatives, the FEP shall consider the length of the participant's commute, participant safety, the cost of the transportation relative to the participant's income, and other relevant factors.
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Participant or W-2 group member's illness, injury, disability, or incapacity.
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Accommodations that have been determined necessary in a formal assessment are not available to allow the participant to complete the assigned activity.
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Conflict with another assigned W-2 activity or job search attempts.
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Inclement weather that impedes transportation or travel.
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School emergency.
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Domestic violence issues.
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Observance of a religious holiday.
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Routine medical or school appointments that cannot be scheduled at times other than during assigned activities.
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Child's school holiday, excluding summer break.
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Any day that the worksite or training site is closed due to a site-specific holiday.
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Death in the participant's immediate family. Immediate family means a participant's spouse, nonmarital co-parent, step-parents, grandparents, foster parents, children, step-children, grandchildren, foster children, brothers and their spouses, sisters and their spouses, aunts, uncles, sons-in-law, daughters-in-law, cousins, nieces and nephews of the participant or the participant's spouse or nonmarital co-parent, and other relatives of the participant or the participant's spouse or nonmarital co-parent if these other relatives reside in the same household as the participant. A participant may be granted good cause for no more than 3 business days if only local travel is necessary to attend the funeral services. A participant may be granted good cause for no more than 7 business days if long-distance travel is required to attend the funeral services. In general, the good cause period may not exceed the week following the death of a member of the participant's immediate family, but the FEP may lengthen the timeframe for good cause depending upon individual circumstances.
•
Other circumstances beyond the control of the participant, but only as determined by the FEP. The FEP shall consider what a reasonable employer may allow under its absence policy and hardships that make completing activities and notifying the agency of missed activities more difficult for W-2 participants.
The participant shall notify the FEP of the good cause reason within 7 business days after an absence from a required activity to prevent a payment reduction. A FEP may request written documentation before accepting a good cause reason for a participant's absence from required activities if the participant has a pattern of absences of more than 3 consecutive days or more than 5 days in a rolling 30-day period and the FEP has reason to believe that the participant is misusing the good cause policy. An absence means being absent from any one required activity. A pattern of absences may include past absences for which a good cause reason was accepted.
Summary of factual data and analytical methodologies
The proposed rule on notice of W-2 payment reductions or loss of eligibility is based on requirements in s.
49.153, Stats., as created by
2005 Wisconsin Act 25. In order to meet the statutory requirement that written and oral notification be made prior to taking action regarding sanctions or case closures, the Department had to implement stringent timeframes to ensure that these notifications occur before the action is finalized in the Client Assistance for Re-employment and Economic Support (CARES) automation system. Prior to this statutory change, participant notifications took place after the action had already been taken.
The proposed good cause amendments are based on the recommendations in the W-2 Sanctions Study released by the Department in December 2004 and the Temporary Assistance to Needy Families (TANF) rules issued February 5, 2008. The purpose of the W-2 Sanctions Study was to provide information to support the Department's commitment to ensure that W-2 sanctions are not applied due to factors such as an individual's race, ethnicity, geographic location, employment barriers, or other issues that have not been adequately identified or addressed by the participant's FEP. The W-2 Sanctions Study incorporated the findings of a steering committee that consisted of W-2 agency administrators, state administrators, representatives of client advocacy groups, and academics.
Comparison with federal regulations
If an individual refuses to engage in required work, the state must reduce or terminate the amount of assistance payable to the family, subject to any good cause or other exceptions the state may establish. The state must, at a minimum, reduce the amount of assistance otherwise payable to the family pro rata with respect to any period during the month in which the individual refuses to work. The state may impose a greater reduction, including terminating assistance. A state may not reduce or terminate assistance for a single custodial parent caring for a child under age six if appropriate and affordable child care is unavailable within a reasonable distance from the parent's home or worksite.
The TANF rules issued February 5, 2008, provide that a state may count a participant's excused absences for holidays and a maximum of 10 additional days of excused absences in any 12-month period in the federal participation rate. The rule commentary explains that this policy takes into consideration varying worksite and educational practices as well as unexpected events that cause a worksite to close or an individual to miss scheduled hours. A state's flexibility to excuse other absences is not limited. The required federal participation rate is 50 percent to allow the state to balance the goals of the program, the needs of the family, and obligations under the Americans with Disabilities Act.
Comparison with rules in adjacent states
Minnesota. When a participant fails without good cause to comply with program requirements, a notice of intent to sanction is sent to the participant specifying the requirements that were not complied with, informing the participant that the county agency will impose the sanctions if the participant does not come into compliance within a minimum of 10 days, specifying what must be done to come into compliance, and informing the participant of the opportunity to request a fair hearing or conciliation conference. Within the 10 days, the participant may prevent a sanction by complying with program requirements, demonstrating that she is already in compliance, showing good cause for not complying with the requirements, or requesting a fair hearing or conciliation conference. If the participant does not do any of these within 10 calendar days of the mailing of the notice of intent to sanction, the job counselor must notify the county agency that the assistance payment should be reduced. The county must send a notice of adverse action to the participant at least 10 days before a sanction is imposed. The notice must inform the participant of the sanction that will be imposed, the reasons for the sanction, the effective date of the sanction, and the participant's right to have a fair hearing. If the participant requests a fair hearing or a conciliation conference, sanctions will not be imposed until there is a determination of noncompliance.
Good cause for failure to comply with program requirements exists when:
(1) appropriate child care is not available;
(2) the job does not meet the definition of suitable employment;
