Effects Vary Between Contractors
The impact of this rule may vary considerably between individual contractors within a business sector. License fees and assessments may be affected by a number of variables, including contractor size, contractor financial strength, contractor risk practices and commodity prices.
For many contractors, this rule will slow the rate at which the contractor's fees and fund assessments would otherwise decline. Some contractors (especially grain warehouse keepers) may have increased fees and fund assessments. For a few contractors, this rule will actually speed the reduction of fees and fund assessments. Many individual contractors (especially milk contractors) will be unaffected by this rule.
This rule incorporates an “assessment holiday" that will automatically go into affect when industry sector balances and overall fund balances grow to specified levels.
Steps to Assist Small Business
Many of the businesses affected by this rule, including contractors and agricultural producers, are “small businesses." This rule benefits small agricultural producers, by preventing the erosion of the agricultural producer security program that helps protect them against catastrophic financial defaults by contractors.
This rule increases aggregate license fees collected from grain dealers and warehouse keepers. However, the size of the fee increase is not significant in relation to overall business costs (see above). This rule also restructures the license fee formula, to make it more fair for small businesses (who arguably pay disproportionately high fees compared to large businesses).
For example, under current rules, a grain dealer who procures $550,000 worth of grain pays the same basic license fee as one who procures 3 times that amount. Under this rule, larger grain businesses would pay a more representative share of overall license fees. The smallest grain dealers and warehouse keepers will likely see license fee decreases under this rule.
This rule also provides a similar benefit for small processed potato buyers who are noncontributing vegetable contractors. Under current law, the basic license fee for all contractors in this group is a flat $500 with some other add-ons. Under this rule, the base license fee would be the lower of a flat $2,000 or $25 plus 8.75¢ for each $100 in purchases. That change would reduce fees for smaller businesses.
Conclusion
This rule will benefit agricultural producers, by preventing erosion of the producer security program that helps protect them against catastrophic financial defaults by contractors.
This rule will affect license fees and fund assessments paid by contractors, including grain dealers, grain warehouse keepers, milk contractors and vegetable contractors. Other things equal, total license fees and fund assessments will actually decline over the next few years (with or without this rule), because of fee credits and declining rates built into the producer security law itself. This rule will slow, but not reverse, that decline.
Fund assessments will continue to decline over all business sectors. License fees (net after credits) will continue to decline for milk contractors and vegetable contractors, but will go up for grain dealers and grain warehouse keepers. The increase for grain dealers and grain warehouse keepers will not have any significant impact on their overall business costs.
The new license fee formula for grain dealers and grain warehouse keepers will be more equitable, in that it will require large grain dealers and warehouse keepers to pay a more proportionate share of program costs. As a result, small grain dealers and warehouse keepers may actually see a reduction in license fees.
Summary of Comments by Legislative Review Committees
On August 13, 2007, DATCP transmitted the above rule for legislative review. The rule was assigned to the Senate Committee on Agriculture and Higher Education and to the Assembly Committee on Agriculture. The Senate Committee on Agriculture and Higher Education took no action. The Chair of the Assembly Committee on Agriculture asked for a meeting with DATCP, and a thirty day extension of the review period, but took no other action.
Agriculture, Trade and Consumer Protection
Revises Chapters
ATCP 74 and
75, relating to local agents regulating retail food establishments for the Department. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
This rule reorganizes and amends the current rules related to local agent agreements. Most of the changes are technical, not substantive. This rule does not make any substantive changes nor increase any fees for retail food establishments.
This rule does not affect retail food establishments or other businesses. It only affects local governmental agents that contract with DATCP to license and inspect retail food establishments. In general, this rule will simplify, clarify and streamline the local agent program.
This rule has no adverse impact on retail food establishments, some of which are considered “small businesses" as defined in s.
227.114 (1), Stats. This rule does
not impose any additional fees, costs, compliance requirements, recordkeeping requirements, or other requirements on retail food establishments.
This rule streamlines and clarifies the contract relationship between DATCP and local health departments that choose to license and inspect retail food establishments in their jurisdictional areas. This rule does not increase costs or fees, and will have no adverse effect on retail food establishments or other businesses, and will have no adverse effect on small businesses.
Summary of Comments by Legislative Review Committees
On August 13, 2008, DATCP transmitted the above rule for legislative review. The rule was assigned to the Senate Committee on Public Health, Senior Issues, Long Term Care and Privacy and to the Assembly Committee on Agriculture. The legislative review period expired on September 26, 2008. No hearings were held and neither committee requested any changes to the rule.
Agriculture, Trade and Consumer Protection
Revises Chapter
ATCP 123, relating to electronic communications services. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
This rule updates and clarifies current rule coverage to ensure that consumers subscribing to electronic communications services (including video services and internet access services) are protected on an equal basis, regardless of the technology or method used to deliver the service. This rule also incorporates new statutory terminology.
Current rules already apply to subscriptions for telecommunications services, including the “conveyance of voice, data or other information at any frequency over any part of the electromagnetic spectrum." This rule clarifies that this current coverage includes video services and internet access services. Exclusion of these services would reduce current rule coverage and consumer protection.
This rule does not make major changes in rule content, but does make minor content adjustments to address new service delivery methods and clarify what services are covered by the rule. This rule also incorporates new statutory definitions created by
2007 Wis. Act 42.
DATCP has not incorporated a small business enforcement policy in this rule. Although the current rule covers some small businesses, the modifications made in the rule do not change this coverage or otherwise affect small businesses. DATCP will seek voluntary compliance.
Summary of Comments by Legislative Review Committees
On August 13, 2008, DATCP transmitted the above rule for legislative review. The rule was assigned to the Senate Committee on Commerce, Utilities and Rail and to the Assembly Committee on Energy and Utilities. The Senate Committee Chair on Commerce, Utilities and Rail met with the agency on October 1, 2008, and took no action. The Assembly Committee Chair on Energy and Utilities met with the agency on October 1, 2008 and took no action.
Children and Families
Revises Chapters
DCF 250,
251 and
252, relating to child care centers. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
Most child care centers are small businesses as defined in s.
227.114 (1) (a), Stats. The new rules affecting family child care centers will require outdoor play space on the premises to be within a permanent enclosure that is not less than 4 feet high. As of January 2007, there were 3,120 family child care centers licensed to care for between 4 and 8 children. The Department estimates that 500 to 600 facilities will be affected by this change. This provision is consistent with national safety standards for child care settings. The minimal cost of a fence is $300. The rules also include oversight requirements for a family child care licensee who does not provide care and supervision for at least 50% of the hours of the center's operation, including being on the premises for 30 hours per month to carry out the responsibilities of a licensee. This cost is estimated at $300 per month.
The rules affecting group child care center require directors of a child care center with more than 50 children to obtain a child care administrator's credential within 3 years. The Wisconsin Technical College System estimates that the cost of obtaining this credential is $2000 per credential including books and other materials. The T.E.A.C.H. Early Childhood© - Wisconsin scholarship program administered through the Wisconsin Early Childhood Association under contract with the Department of Workforce Development, is available to students enrolled in the Wisconsin Professional Credential for Child Care Administrators program. The T.E.A.C.H. Early Childhood© - Wisconsin scholarship covers 70% of tuition, 75% of books, a travel stipend, up to 15 hours of release time per semester and 75% of the credential fee. The center agrees to provide 20% of tuition, $300 bonus when a contract is completed and up to an additional 15 hours of release time. The scholarship recipient provides 10% of tuition, 25% of the cost of books and 25% of the credential fee. In addition, the scholarship recipient agrees to remain in his or her current position at the center for a year. Current research show that the quality of child care provided is higher when center directors have higher educational levels.
Summary of Comments by Legislative Review Committees
In response to a meeting with Representative Owens' staff, Representative Albers, Senator Grothman, representatives of the Wisconsin Child Care Administrators Association, and Department staff, the Department agreed to modify the following:
• The provision that child care centers report an injury that requires professional medical treatment is modified from within 48 hours after the occurrence to within 48 hours of the licensee becoming aware of the medical treatment.
• The proposed amendment that would have considered lip balm a medication was removed.
• The proposal that a record of snacks brought in by parents be kept on file for 3 months was removed.
Children and Families
Revises Chapter
DCF 150, relating to the establishment of birth cost orders based on child support guidelines. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
The rule will affect small businesses but will not have a significant economic impact on a substantial number of small businesses.
Summary of Comments by Legislative Review Committees
In response to concerns expressed at a meeting with Senator Jauch and advocates, the Department submitted germane modifications that provide:
• The court's consideration of ability to pay will be mandatory, rather than permissive, in the establishment of a birth cost order.
• A birth cost order shall be established based on the low-income birth cost order schedule regardless of whether the father has a child support obligation determined under the low-income child support payer provision.
• The revised rule emphasizes that the birth cost judgment amount set forth in the schedule for Maximum Birth Cost Judgment Amount for Low-Income Payers at 75% to 125% of the Federal Poverty Guidelines is a maximum by adding the phrase “may not exceed."
Commerce
Revises Chapters
Comm 5,
18 and
21, relating to technical requirements for conveyances and licensing of installers of residential conveyances. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
Pursuant to s.
227.19 (3m), Stats., the Department has determined that the rules that update chapters 18 by adopting the latest edition of the elevator and platform lift standards published by the American Society of Mechanical Engineers (ASME) and modifying these standards, where necessary, to reflect any Wisconsin statutes or to improve clarity, and that modify chapter Comm 5 for consistency with recent legislation will not have a significant impact on a substantial number of small businesses.
Summary of Comments by Legislative Review Committees
No comments were received.
Commerce
Revises Chapter
Comm 34, relating to amusement rides. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
Chapter
Comm 34 establishes minimum standards for the design, construction, operation, maintenance and assembly of amusement rides. The amusement ride code has not been subject to an overall review and update since 2003. The revisions primarily clarify existing rules. In some instances the proposed changes keep the rules consistent with each other and with other Commerce codes. The department utilized an advisory council, the Amusement Ride Council, to gather information on potential impacts, including economic, in complying with both the technical and administrative requirements of code changes. The code council did not identify or convey any impacts to the department.
Summary of Comments by Legislative Review Committees
No comments were received.
Corrections
Revises Chapter
DOC 332, relating to the sex offender registration fee. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
There is no expected effect on small businesses under §
227.114, Stats.
Summary of Comments by Legislative Review Committees
Comments on the rule which were received through the hearing process, including written, oral, and testimony were considered if they were received by July 31, 2008.
Financial Institutions — Securities
Revises Chapters
DFI-Sec 1 to
9,
31,
32 and
35, relating to all aspects of Wisconsin securities regulation, including definitions, securities registration procedures and registration exemptions, securities broker-dealer and investment adviser registration, enforcement powers and procedures, as well as general administrative powers. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
No final regulatory flexibility analysis is required to be included on the basis that the Division of Securities has determined, after complying with s.
227.114, Wis. Stats., that the rules will not have a significant economic impact on a substantial number of small businesses.
Summary of Comments by Legislative Review Committees
No comments were reported.
Insurance
Revises Chapter
Ins 50, relating to audit, control and financial reporting requirements. Effective 1-1-09.
Summary of Final Regulatory Flexibility Analysis
