The Department used the Pool Advisory Code Council to gather and analyze information on potential impacts in complying with both the technical and administrative requirements of the codes. Many small businesses belong to the industry associations that sit on the advisory council. A responsibility of council members is to bring forth concerns that their respective organizations may have with the requirements including economic impact.
In addition to posting rule development and council activities on the Department's web site, the Department offers an Email subscription service that is available to small businesses. This service provides Email notification of council meetings, meeting, agendas and council meeting progress reports so small businesses can follow proposed code changes.
It is anticipated this requirement will not have a significant impact on small businesses owning, designing, building, altering, or remodeling public swimming pools, water attractions and associated equipment.
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
Summary
The Department believes the rules will not increase the effect on small businesses from what the current rules impose on them. An economic impact report has not been required pursuant to s.
227.137, Stats.
Types of small businesses that will be affected by the rules.
The proposed rules will affect any business that owns or is involved with the design, construction, installation, repair, alteration, and reconstruction of public swimming pools, water attractions, and associated equipment.
Reporting, bookkeeping and other procedures required for compliance with the rules.
There are no additional reporting, bookkeeping or other procedures required for compliance with the rules.
Types of professional skills necessary for compliance with the rules.
There are no additional professional skills necessary for compliance with the rules.
Will rules have a significant economic impact on small businesses?
No.
Fiscal Estimate
Summary
The Safety and Buildings Division is responsible for administering and enforcing rules relating to the design, construction, alteration or reconstruction of public swimming pools, water attractions and associated equipment. The proposed rules are based upon the latest edition of the American National Standards Institute/International Aquatics Foundation (ANSI/IAF) requirements for aquatic recreation facilities (swimming pools and water attractions) and clarify existing technical requirements. The division does not anticipate that the proposed rules will increase its workload and the workload can be accommodated with current resources.
The proposed rules will not have a fiscal effect on other state agencies or local governments.
The proposed rules will not increase the effect from what the current rules impose on small businesses that own or are involved in the design, construction, alteration or reconstruction of public swimming pools and water attractions.
State fiscal effect
None.
Local fiscal effect
None.
Long-range fiscal implications
None are anticipated.
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., the Office of the Commissioner of Insurance will hold a public hearing to consider the adoption of a rulemaking order affecting sections
Ins 50.01,
50.05,
50.08,
50.10,
50.11,
50.12,
50.13,
50.14,
50.15,
50.16,
50.17,
50.18, Wis. Adm. Code, relating to audit, control and financial reporting requirements.
Hearing Information
Date: July 8, 2008
Time: 10:00 a.m.,
or as soon thereafter as the matter may be reached
Place: Office of the Commissioner of Insurance
Room 227, 125 South Webster St 2nd Floor
Madison, WI
Submission of Written Comments
Written comments can be mailed to:
James W. Harris
Legal Unit - OCI Rule Comment for Rule Ins 5000
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
James W. Harris
Legal Unit - OCI Rule Comment for Rule Ins 5000
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Comments can be emailed to:
James W. Harris
The deadline for submitting comments is 4:00 p.m. on the 7th day after the date for the hearing stated in this Notice of Hearing.
Copies of Proposed Rule and Agency 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, Public Information and Communications, OCI, at:
inger.williams@wisconsin.gov, (608) 264-8110, 125 South Webster Street – 2
nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
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@wisconsin.gov
Analysis Prepared by the Office of the Commissioner of Insurance
Statutes interpreted
Statutory authority
Explanation of agency authority
OCI has set standards for accounting practices related to the preparation and submission of annual audited financial reports, annual financial statements and examinations required of insurers doing business in Wisconsin.
Related statutes or rules
Plain language summary
The provisions of subch.
I of ch. 50, Wis. Adm. Code establish the requirement to file an annual audited financial report (CPA audit) and the related standards including applicability, auditor qualification requirements and the auditor duty to report adverse financial conditions. The proposed rule updates and adds certain general requirements including those related to auditor independence, the scope of the audit and report, communication of internal control matters noted in the audit, an audit committee, and management's report of internal control over financial reporting. With respect to auditor independence the proposed rule provides that the lead auditor may not serve in that capacity for a period more than five years. The rule specifies various non-audit services that, if performed by the auditor, would impair the auditor's independence in relation to the insurer. Insurers with less than $100 million in direct and assumed premium may request a waiver from the requirement based upon financial or organizational hardship. Partners and senior managers of the audit engagement may not serve as a member of the board of directors, or officer, or controller, or similar position of the insurer if employed by the independent accounting firm that audited the insurer during the one-year period which preceded the most current statutory opinion. With respect to corporate responsibility the proposed rule provides that every insurer required to file an annual audited financial report shall also be required to have an audit committee that is directly responsible for the appointment, oversight and compensation of the auditor. Insurers with less than $ 500 million in direct and assumed premium may apply for a waiver from this requirement based on hardship. With respect to internal control by an insurer over financial reporting the proposed rule requires that management of insurers with more than $ 500 million in direct and assumed premium file a report with the Commissioner regarding its assessment of internal control over financial reporting, including a statement whether the controls are effective to provide reasonable assurance regarding the reliability of the statutory financial statements and disclosure of any unremediated material weaknesses in internal control over financial reporting.
Comparison with federal regulations
There are no federal regulations which address annual financial reports, annual financial statements and examinations to be prepared by insurers doing business in Wisconsin. Certain insurers, however are SEC registrants, and are subject to audit committee independence and preapproval requirements of the Securities and Exchange Act of 1934, management reports on internal control over financial reporting requirements of Section 404 of the Sarbanes-Oxley Act of 2002, and SEC regulations promulgated thereunder.
Comparison of rules in adjacent states
Illinois: Il. Adm. Code Title 50, Part 925, Section
925.70, requires annual audited financial reports from insurers doing business in the state that are prepared by a qualified independent certified public accountant. The state has indicated to the NAIC that consideration of the Model audit regulation will be considered in the fall of 2008.
Iowa: Iowa Adm. Code 191-5.25, requires annual audited financial reports from insurers doing business in the state that are prepared by a qualified independent certified public accountant. The state has indicated to the NAIC that it has initiated the process for consideration of the Model audit regulation through prehearing exposure to be followed by submission to its rules committee in late 2008.
Michigan: Mich. Comp. Laws, Ch.
500, requires annual audited financial reports from insurers authorized to do business in the state that are prepared by an independent certified public accountant. The state has indicated to the NAIC that there is legislation pending to modify its s. 10 concerning audit reports.
Minnesota: Minn. Stat. Ch. 60A.129, Subd. 3, requires annual audited financial reports from insurers doing business in the state that are prepared by an independent certified public accountant. The state has indicated to the NAIC that consideration of the Model audit regulation is contemplated in 2009.
Summary of factual data and analytical methodologies
The proposed rule is based upon a model regulation adopted by the National Association of Insurance Commissioners (NAIC) at the June, 2006, national meeting. The proposed rule is under consideration as it has been recommended by the NAIC, will increase the ability of management and regulators to monitor financial status, and will provide control documentation contemplated in the enhanced financial surveillance procedures adopted by the NAIC and required as an accreditation standard for statutory examinations conducted after January 1, 2010.
Analysis and supporting documentation used to determine effect on small businesses
The proposed rule establishes direct and assumed premium thresholds and waiver provisions that minimize the effect upon smaller insurers.
Initial Regulatory Flexibility Analysis
This rule does not impose any additional requirements on small businesses and will have little or no effect on small businesses.
Fiscal Estimate
Effect on private sector
This rule change may have a significant financial effect on a small number of companies in the private sector regulated by OCI. Costs associated with implementing the provisions of the proposed rule, other than those related to enhanced documentation of internal controls over financial reporting will not be significant. Provisions related to enhanced documentation of internal controls over financial reporting apply only to insurers with more than $ 500 million in direct and assumed premium, and a majority of these insurers have developed the systems and procedures necessary to achieve compliance voluntarily or as a result of their status as SEC registrants.
State fiscal effect
None.
Local fiscal effect
None.
Long-range fiscal implications
