Register 653B: Statements of Scope

Wisconsin Administrative Register No. 653, 5/31/2010

Creates Chapter DCF 110, relating to transitional jobs for low-income adults.

Section 49.162, Stats., provides that the department shall conduct a demonstration project that offers transitional jobs to low-income adults. To be eligible to participate in the demonstration project, an individual must satisfy all of the following criteria:

The department shall provide up to 2,500 transitional jobs under the demonstration project. The jobs shall be allocated among Milwaukee County, Dane County, Racine County, Kenosha County, Rock County, Brown County, and other regions of the state, as determined by the department, in the same proportion as the total number of Wisconsin Works participants are allocated among those counties and other regions as of June 30, 2009.

The department shall seek federal funds to pay for the cost of operating the demonstration project and may conduct the project only to the extent that the department obtains federal funds.

The proposed rules will specify policy for the operation of the demonstration project.

Sections 49.162 and 227.11 (2), Stats.

It is anticipated that initial funding for the program will be from the Emergency Contingency Fund of the Temporary Assistance for Needy Families (TANF) program. The American Recovery and Reinvestment Act of 2009 (ARRA) created the TANF Emergency Contingency Fund under which states can receive 80% federal funding for spending increases in FFYs 2009 and 2010 over FFY 2007 or 2008 in certain categories of TANF-related expenditures. The three categories are basic assistance, non-recurrent short-term benefits, and subsidized employment.

TANF is a federal block grant that provides states with funds that can be used for a wide range of activities that are aimed at any of the four purposes of TANF:

Guidance issued by the Administration for Children and Families (ACF) on the TANF Emergency Fund states that under limited circumstances an adult without a dependent child can receive a TANF service, as long as it is reasonably calculated to accomplish a purpose of the TANF program and does not constitute “assistance" as defined in the TANF regulations. ACF has indicated that services to noncustodial parents and older youth could satisfy one or more of the statutory purposes of the TANF program. Examples of services that could be provided include subsidized employment, job skills training, employment counseling, and employment placement services. (http://www.acf.hhs.gov/ programs/ofa/recovery/tanf-faq.htm)

Low-income adults who are unemployed and not receiving Wisconsin Works or unemployment insurance and entities that become program contractors or worksites.

150 hours

Jude Morse, Policy Advisor

Division of Family and Economic Security

Email: jude.morse@wisconsin.gov

Phone: (608) 266-2784

Revises Chapter DCF 201, relating to child care subsidy program integrity.

Section 49.155 (7m), Stats., as created by 2009 Wisconsin Act 28, provides that the department shall by rule establish policies and procedures permitting the department to do all of the following if a child care provider submits false, misleading, or irregular information to the department or if a child care provider fails to comply with the terms of the program and fails to provide to the satisfaction of the department an explanation for the noncompliance:

1. Recoup payments made to the child care provider.

2. Withhold payments to be made to the child care provider.

3. Impose a forfeiture on the child care provider.

Withholding payments to child care providers is also addressed under s. 49.155 (7) (b) 4., Stats., as created by 2009 Wisconsin Act 28.

The proposed rules will amend existing overpayment recovery and sanction provisions in DCF 201 to specify how these requirements will be implemented.

Sections 49.155 and 227.11 (2), Stats.

None.

Child care providers.

80 hours.

Creates section GAB 1.91, relating to organizations making independent disbursements.

In Citizens United v. FEC, 558 U.S. ___, (No. 08-205) (January 21, 2010), the United States Supreme Court greatly expanded the rights of organizations to engage in independent expenditures and strengthened the ability of the government to require disclosure and disclaimer of the independent expenditures. Pursuant to s. 5.05 (1), the Board has the responsibility for the administration of campaign finance statutes in ch. 11, Stats. Rules promulgated by the Board will ensure the proper administration of the campaign finance statutes and address the application of Citizens United v. FEC to Wisconsin statutes.

Within the context of ch. 11, Stats, the proposed order will provide direction to organizations receiving contributions for independent disbursements or making independent disbursements following the U.S. Supreme Court decision in Citizens United v. FEC, 558 U.S. ___, (No. 08-205)(January 21, 2010). The proposed rule enumerates registration, reporting, and disclaimer requirements of provisions of ch. 11, Stats., which apply to organizations receiving contributions or making independent disbursements.

Sections 5.05 (1) (f) and 227.11 (2) (a), Stats.

At the federal level, the FEC provides rules at 11 CFR 109.10, which regulate persons who are not a committee and make independent expenditures. An independent expenditure statement and reports quarterly are required for any person making independent expenditures in excess of an aggregate $250.00 in a calendar year. If a person makes an independent expenditure of $10,000.00 or more, an independent expenditure statement and report must be filed within 48 hours of the expenditure. Any person making an independent expenditure of $1,000.00 or more within 20 days of an election must file an independent statement and report within 24 hours of the expenditure. The independent expenditure statement must include the identity of the person making the expenditure and any contributions received in excess of $200.00. In addition, a disclaimer is required for any communication resulting from an independent expenditure.

Any person, association, corporation, partnership, labor organization, tribe, or any other person that is not a committee, individual or political group subject to registration under s. 11.23, Stats., that will make independent disbursements.

50 hours.

Creates section Ins 2.18, relating to life settlements and affecting small business.

Passage of SB 513 has replaced Wisconsin's viatical settlement statute with comprehensive regulation of life settlement transactions. The statute replaces licensing requirements for brokers and providers and establishes pre-licensing and continuing education standards. The proposed rule will assist in implementation of the requirements of SB 513 including those provisions relating to licensure, training, disclosures, reporting, examinations and conduct of licensees.

Prior to passage of SB 513, regulation under Wisconsin's existing viatical settlement statute was limited to life insurance policies sold by policyholders with terminal or life-threatening illnesses. The current life settlement industry has expanded to include purchases of policies from other individuals, and the industry is experiencing tremendous growth. SB 513 addresses regulatory needs of the expanded life settlement industry and adds administrative duties and procedures for oversight of licensees operating within the state and protection of consumers, which the proposed rule will address.

Sections 601.41 (3), 601.42 (3), 628.34, 628.38, 631.20, 631.23, and 632.69, Wis. Stats.

The office is unaware of any proposed or existing federal regulation that is intended to address the activities to be regulated by the proposed rule.

The proposed rule will affect insurers which offer life insurance products, life settlement brokers and providers, intermediaries, policyholders and purchasers of life settlements.

200 hours and no other resources are necessary.

Revises Chapter Ins 3, relating to casualty insurance and affecting small business.

Passage of 111 P.L. 148 and 111 P.L. 152, the Patient Protection and Affordable Care Act (PPACA), and the Health Care and Education Reconciliation Act of 2010 (HCERA), respectively, will require modifications. Insurance Chapter 3 contains numerous provisions that are likely to be revised due to federal law. Among the areas that will be reviewed to ensure compliance with state and federal law include: individual, group and blanket insurance requirements, unfair trade practices, marketing practices, mandated coverage regulations including coverage for adult children, autism spectrum disorders and newborns coverage, Medicare supplement and possibly long-term care insurance regulations. Each provision that is now covered or affected by PPACA or HCERA will need to be reviewed to determine if a rule must be repealed, recreated or amended.

The Department of Health and Human Services in conjunction with the National Association of Insurance Commissioners will be developing federal regulations to implement portions of the PPACA and HCERA. As those develop insurance regulations will again need to be reviewed to avoid conflict with federal requirements.

Existing state policies towards the regulation of individual, group, self-funded governmental plans as defined at s. 632.745, Stats., and group blanket plans confer consumer protections balanced against insurer conduct. With the passage of PPACA and HCERA, Wisconsin regulations must be reviewed to determine whether the regulations provide more consumer protections than federal law or if there is a conflict. Both the state and federal regulations provide consumer protections and the regulatory structure for oversight of insurers operating in the state. The goal will be to maintain the balance that currently exists in the Wisconsin regulatory structure.

Sections 601.41 (3), 625.16, 628.38, 632.73, 632.76, and 632.81, Wis. Stats.

Most Wisconsin regulations provide more protections than federal law and will be allowed to stay as is following passage of PPACA and HCERA. However, current regulation does not anticipate the Exchanges that will be established, uniform benefits and definitions that will become the core of health insurance products, wellness programs that will be ranked, changes to prescription drug plans for seniors, and data collection and review of insurer rates and efficiency in the market place.

With the broad scope of PPACA and HCERA all entities related to insurance may be affected by the changes including intermediaries, insurers, and third-party administrators.

200 hours and no other resources are necessary.

Revises Chapter Ins 6, relating to general insurance provisions and affecting small business.

Passage of 111 P.L. 148 and 111 P.L. 152, the Patient Protection and Affordable Care Act (PPACA), and the Health Care and Education Reconciliation Act of 2010 (HCERA), respectively, will require modifications. Insurance Chapter 3 contains numerous provisions that are likely to be revised due to federal law. Among the areas that will be reviewed to ensure compliance with state and federal law include: individual, group and blanket insurance requirements, unfair trade practices, marketing practices, mandated coverage regulations including coverage for adult children, autism spectrum disorders and newborns coverage, Medicare supplement and possibly long-term care insurance regulations. Each provision that is now covered or affected by PPACA or HCERA will need to be reviewed to determine if a rule must be repealed, recreated or amended.

The Department of Health and Human Services in conjunction with the National Association of Insurance Commissioners will be developing federal regulations to implement portions of the PPACA and HCERA. As those develop insurance regulations will again need to be reviewed to avoid conflict with federal requirements.

Existing state policies towards the regulation of individual, group, self-funded governmental plans as defined at s. 632.745, Stats., and group blanket plans confer consumer protections balanced against insurer conduct. With the passage of PPACA and HCERA, Wisconsin regulations must be reviewed to determine whether the regulations provide more consumer protections than federal law or if there is a conflict. Both the state and federal regulations provide consumer protections and the regulatory structure for oversight of insurers operating in the state. The goal will be to maintain the balance that currently exists in the Wisconsin regulatory structure.

Sections 601.41 (3), 625.16, 628.38, 632.73, 632.76, and 632.81, Wis. Stats.

Most Wisconsin regulations provide more protections than federal law and will be allowed to stay as is following passage of PPACA and HCERA. However, current regulation does not anticipate the Exchanges that will be established, uniform benefits and definitions that will become the core of health insurance products, wellness programs that will be ranked, changes to prescription drug plans for seniors, and data collection and review of insurer rates and efficiency in the market place.

With the broad scope of PPACA and HCERA all entities related to insurance may be affected by the changes including intermediaries, insurers, and third-party administrators.

200 hours and no other resources are necessary.

Revises Chapter Ins 8, relating to employee benefit plans and affecting small business.

Passage of 111 P.L. 148 and 111 P.L. 152, the Patient Protection and Affordable Care Act (PPACA), and the Health Care and Education Reconciliation Act of 2010 (HCERA), respectively, will require modifications. Insurance Chapter 3 contains numerous provisions that are likely to be revised due to federal law. Among the areas that will be reviewed to ensure compliance with state and federal law include: individual, group and blanket insurance requirements, unfair trade practices, marketing practices, mandated coverage regulations including coverage for adult children, autism spectrum disorders and newborns coverage, Medicare supplement and possibly long-term care insurance regulations. Each provision that is now covered or affected by PPACA or HCERA will need to be reviewed to determine if a rule must be repealed, recreated or amended.

The Department of Health and Human Services in conjunction with the National Association of Insurance Commissioners will be developing federal regulations to implement portions of the PPACA and HCERA. As those develop insurance regulations will again need to be reviewed to avoid conflict with federal requirements.

Existing state policies towards the regulation of individual, group, self-funded governmental plans as defined at s. 632.745, Stats., and group blanket plans confer consumer protections balanced against insurer conduct. With the passage of PPACA and HCERA, Wisconsin regulations must be reviewed to determine whether the regulations provide more consumer protections than federal law or if there is a conflict. Both the state and federal regulations provide consumer protections and the regulatory structure for oversight of insurers operating in the state. The goal will be to maintain the balance that currently exists in the Wisconsin regulatory structure.

Sections 601.41 (3), 625.16, 628.38, 632.73, 632.76, and 632.81, Wis. Stats.

Most Wisconsin regulations provide more protections than federal law and will be allowed to stay as is following passage of PPACA and HCERA. However, current regulation does not anticipate the Exchanges that will be established, uniform benefits and definitions that will become the core of health insurance products, wellness programs that will be ranked, changes to prescription drug plans for seniors, and data collection and review of insurer rates and efficiency in the market place.

With the broad scope of PPACA and HCERA all entities related to insurance may be affected by the changes including intermediaries, insurers, and third-party administrators.

200 hours and no other resources are necessary.

Revises Chapter Ins 18, relating to health benefit plan grievance and independent review organizations review procedures and affecting small business.

Passage of 111 P.L. 148 and 111 P.L. 152, the Patient Protection and Affordable Care Act (PPACA), and the Health Care and Education Reconciliation Act of 2010 (HCERA), respectively, will require modifications. Insurance Chapter 3 contains numerous provisions that are likely to be revised due to federal law. Among the areas that will be reviewed to ensure compliance with state and federal law include: individual, group and blanket insurance requirements, unfair trade practices, marketing practices, mandated coverage regulations including coverage for adult children, autism spectrum disorders and newborns coverage, Medicare supplement and possibly long-term care insurance regulations. Each provision that is now covered or affected by PPACA or HCERA will need to be reviewed to determine if a rule must be repealed, recreated or amended.

The Department of Health and Human Services in conjunction with the National Association of Insurance Commissioners will be developing federal regulations to implement portions of the PPACA and HCERA. As those develop insurance regulations will again need to be reviewed to avoid conflict with federal requirements.

Existing state policies towards the regulation of individual, group, self-funded governmental plans as defined at s. 632.745, Stats., and group blanket plans confer consumer protections balanced against insurer conduct. With the passage of PPACA and HCERA, Wisconsin regulations must be reviewed to determine whether the regulations provide more consumer protections than federal law or if there is a conflict. Both the state and federal regulations provide consumer protections and the regulatory structure for oversight of insurers operating in the state. The goal will be to maintain the balance that currently exists in the Wisconsin regulatory structure.

Sections 601.41 (3), 625.16, 628.38, 632.73, 632.76, and 632.81, Wis. Stats.

Most Wisconsin regulations provide more protections than federal law and will be allowed to stay as is following passage of PPACA and HCERA. However, current regulation does not anticipate the Exchanges that will be established, uniform benefits and definitions that will become the core of health insurance products, wellness programs that will be ranked, changes to prescription drug plans for seniors, and data collection and review of insurer rates and efficiency in the market place.

With the broad scope of PPACA and HCERA all entities related to insurance may be affected by the changes including intermediaries, insurers, and third-party administrators.

200 hours and no other resources are necessary.

Creates Chapter NR 188, relating to an exemption process for the sale of mercury-containing products.

The objective of this proposed rule is to establish procedures by which mercury-containing products may be exempt from the sale ban contained in 2009 Wisconsin Act 44: Products Containing Mercury.

On October 6, 2009, Governor Doyle signed into law Act 44, the mercury-added products ban. This ban prohibits the sale of certain mercury-added products including fever thermometers, manometers, thermostats, instruments and measuring devices, switches and relays and certain household items. It also prohibits the use of free-flowing mercury and mercury-added compounds or instruments in schools for which there is no reasonably acceptable, mercury-free alternative. Act 44 also provides for the Department of Natural Resources to make exemptions for the sale of these mercury-added products through a process defined within promulgated rules.

This rule would define the process by which the department would grant exemptions to the ban of mercury-added product sales in Wisconsin. Act 44 does not provide for any alternative to establishing this exemption in Wisconsin's environmental rules. Failure to do so is not only contrary to state statute, but exemptions could also be challenged in court on the basis of due process for policy-making.

Section 299.49 (3) (c), Stats.

No federal regulations exist or are proposed which are comparable to Act 44.

This proposed rule will impact any company which sells the applicable mercury-containing products for which a reasonable and appropriate alternative does not exist for a specific use. Also impacted are businesses that utilize switches, relays, instruments and thermostats in their products that may be interested in an exemption. Other interested parties include environmental organizations which were involved in the development and passage of of Act 44.

The Department estimates that development of these rules will consume approximately 100 hours of work time.

Revises Chapter NR 749, relating to fees for providing assistance.

Chapter NR 749 establishes the fees that are required when responsible parties or others request the Remediation and Redevelopment (RR) Program review documents or provide other related assistance associated with environmental contamination. The fee structure in ch. NR 749 has not been modified since the rule was originally promulgated in September, 1998. Recent projections show that by the end of the current biennium, fee collections will no longer be sufficient to cover staff costs for providing the requested services. Therefore, rule changes to increase the fees are being proposed so that program expenses can be fully covered. In addition, several other changes such as incorporating previous statutory revisions and clarifying existing language will also be included.

In 1997, Act 27 authorized the Department to collect fees to off-set the cost of technical and redevelopment assistance being provided. Currently 9 permanent staff are funded with RR program revenue fees. Without a fee increase, the number of staff that can be devoted to providing assistance would be reduced. This would likely result in the timeframe necessary to provide review and comment on documents to increase significantly.

Section 227.11 (2) and Chapter 292, Stats.

There are no federal regulations that are comparable to the rule changes being proposed.

This rule would only affect those persons that specifically request assistance from the Department regarding the evaluation and remediation of environmental contamination.

In order to avoid a program revenue shortfall during the next biennium, the goal is to complete the rule revisions such that they become effective by June, 2011.

Mark Gordon – RR/5

Phone: 608-266-7278

Email: mark.gordon@wisconsin.gov

Creates Chapter PI 43, relating to education reform.

2009 Wisconsin Act 215 requires schools and school districts to implement certain provisions if they are considered in need of improvement for a certain period of time or are considered low performing. The Act also authorizes the state superintendent of public instruction to intervene in a school district if they are considered in need of improvement for a certain period of time or are considered low performing. The Act requires rules to establish criteria and procedures for determining whether a school or school district is in need of improvement and whether a school is among the lowest performing 5 percent of all public schools in the state. In promulgating these rules, the state superintendent is required to consult with the school district or school board president, the school district administrator, and labor organizations representing employees of each school district that is immediately affected by the Act and legislators whose legislative districts include any portion of each school district.

Section 118.42 (4), Stats.

The proposed rules will be consistent with Wisconsin's state plan required under 20 USC 6311 and approved by the USDE.

Public schools that have been identified as low performing or in need of improvement for a certain number of years.

The amount of time needed for rule development by department staff and the amount of other resources necessary are indeterminable. The time needed to create the rule language itself will be minimal. However, the time involved with guiding the rule through the required rule promulgation process is fairly significant. The rule process takes more than six months to complete.

Creates Chapter PI 45, relating to race-based nicknames, logos, mascots, and team names.

2009 Wisconsin Act 250 allows a school district resident to object to the use of a race-based nickname, logo, mascot, or team name by the school board of that school district by filing a complaint with the state superintendent. Under the Act, the state superintendent is required to promulgate rules necessary to implement and administer this provision. Specifically, rules must define whether the use of the race-based nickname, logo, mascot, or team name promotes discrimination, pupil harassment, or stereotyping. Rules must be submitted to legislative council staff no later than November 1, 2010.

Section 118.134 (2) (a), (b) 1., 2. and (4), Stats.

N/A.

Public schools that receive complaints regarding their school nickname, logo, mascot or team name.

The amount of time needed for rule development by department staff and the amount of other resources necessary are indeterminable. The time needed to create the rule language itself will be minimal. However, the time involved with guiding the rule through the required rule promulgation process is fairly significant. The rule process takes more than six months to complete.