Rule-Making Notices (Hearing Notices)

Wisconsin Administrative Register No. 692, 8/14/2013

Rule-Making Notices

Notice of Hearing

Agriculture, Trade and Consumer Protection

CR 13-058

(DATCP Docket # 13-R-01)

NOTICE IS HEREBY GIVEN THAT the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) will hold public hearings on a proposed rule to revise Chapters ATCP 10 and 12, relating to animal health and movement and animal markets, truckers, and dealers.

Hearing Information

Date:   Monday, September 9, 2013
Time:   6:00 p.m. to 7:00 p.m.
Location:   Pinery Room
  Portage County Public Library-Stevens Point
  1001 Main Street
  Stevens Point, WI 54481-2860

Date:   Tuesday, September 10, 2013
Time:   5:00 p.m. to 6:00 p.m.
Location:   Board Room (1st Floor)
  Department of Agriculture, Trade and
  Consumer Protection
  2811 Agriculture Drive
  Madison, WI 53718-6777

Hearing impaired persons may request an interpreter for this hearing. Please make reservations for a hearing interpreter by August 30, 2013, by writing to Loretta Slauson, Division of Animal Health, P.O. Box 8911, Madison, WI 53708-8911; or by emailing [e-mail]; or by telephone at [phone]. Alternatively, you may contact the DATCP TDD at [phone]. The hearing facility is handicap accessible.

Appearances at the Hearings, Copies of Proposed Rule, and Submittal of Written Comments

DATCP invites the public to attend the hearings and comment on the proposed rule. Following the public hearings, the hearing record will remain open until September 24, 2013, for additional written comments. Comments may be sent to the Division of Agricultural Resource Management at the address below, or to [e-mail], or to http://adminrules.wisconsin.gov.

You can obtain a free copy of this hearing draft rule and related documents including the economic impact analysis by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Agricultural Resource Management, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling [phone] or by emailing [e-mail]. Copies will also be available at the hearing. To view the hearing draft rule online, go to: http://adminrules.wisconsin.gov.

Comments or concerns relating to small business may also be addressed to DATCP's small business regulatory coordinator, Keeley Moll, at the address above, or by email to [e-mail], or by telephone at [phone].

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

This proposed rule will modify current animal health rules to align with federal regulations, state statutory requirements, and previous rule modifications. The proposed rule will also make various modifications to provide for flexibility, clarity, and consistency.

Statutes interpreted

Statutes interpreted: ss. 93.07, 95.197, 95.20, 95.22, 95.31, 95.45, 95.55, 95.57, 95.60, 95.65, 95.68, 95.69, and 95.71, Stats.

Statutory authority

Statutory authority: ss. 93.07 (1) and (10), 95.197, 95.20, 95.22, 95.45 (4) (c), 95.55 (6), 95.60 (3) and (4s), 95.68 (8), 95.69 (8), and 95.71 (8), Stats.

Explanation of statutory authority

The Department of Agriculture, Trade and Consumer Protection (“DATCP") has broad authority to promulgate rules for the proper enforcement of its programs under s. 93.07 (1) and (10), Stats.

DATCP has broad authority under s. 95.20, Stats., to prohibit or regulate the importing of animals into this state or the movement of animals if there are reasonable grounds to believe it is necessary to prevent the introduction or spread of disease in this state.

DATCP has specific rulemaking authority on certificates of veterinary inspection under s. 95.45 (4) (c), Stats., regulation of the farm-raised deer industry under s. 95.55 (6), Stats., and regulation of fish farms under s. 95.60 (3) and (4s), Stats.

Related statutes and rules

The Department of Natural Resources has statutes and rules that are closely related to some of the program areas in DATCP. Section NR 16.45, Wisconsin Administrative Code, establishes fencing requirements and harvest plan requirements for keepers of farm-raised deer that are white-tailed deer. Section 29.87, Stats., establishes guidelines by which the Department of Natural Resources may dispose of escaped farm-raised deer. Section 29.735, Stats., establishes requirements for importation of fish other than health requirements and section 29.736, Stats. establishes requirements for the stocking of fish into waters of the state, other than health requirements.

Plain language analysis

Federal regulations

Many of the programs regulated by state administrative rules are also regulated by federal rules. As federal rules change over time, state rules must also be modified so Wisconsin producers have consistent, non-conflicting requirements to comply with when moving livestock interstate. This rule modifies provisions relating to documentation required for horses and to official individual identification of certain animals to align with federal traceability rules. The rule also modifies provisions relating to the chronic wasting disease (CWD) herd status program to align with United States Department of Agriculture (USDA) rules that establish a Herd Certification Program (HCP) for CWD in farm-raised or captive cervids in the United States.

DOCUMENTATION REQUIRED FOR HORSES MOVING INTERSTATE

Current rule allows horses to be imported without a certificate of veterinary inspection (CVI) if the horse is not commingled with other horses and goes to slaughter within 10 days after arrival at an animal market. Federal regulations no longer allow for this CVI exemption. Therefore, this rule will eliminate this CVI exemption for horses to be consistent with federal regulations.

Official individual identification of animals

Current rule allows bovine animals to be officially identified with eartags approved by the federal bureau or the department, registration numbers, or tattoos. Federal rules now only allow official eartags to be used as official identification. The official eartags must adhere to the National Uniform Eartagging System, the Animal Identification Number System, or other identification system approved by the federal bureau and the department. In addition, federal rules now require the following bovine animals to have official identification: all sexually intact cattle/bison over 18 months of age, all female dairy cattle of any age, all male dairy cattle born after March 11, 2013, and cattle/bison used for shows and exhibitions. The proposed rule modifies the definition of “official individual identification" and “official eartag" when applied to bovine animals to align with federal traceability requirements.

Current rule allows farm-raised deer enrolled in the CWD herd status program to be officially identified with a CWD status program registration tag or a premises tattoo provided the farm-raised deer also has a unique individual identification number. Federal rules now only allow official eartags to be used as official identification of these deer. The official eartags must adhere to the National Uniform Eartagging System, the Animal Identification Number System, or other identification system approved by the federal bureau and the department. The proposed rule modifies the definition of “official individual identification" and “official eartag" as applied to farm-raised deer to align with federal traceability requirements.

The current rule definition of “official individual identification," as it pertains to other animals, is unclear. The proposed rule modifies the definition of official individual identification for clarity when the term is applied to other animals.

Farm-raised deer enrolled in the CWD herd status program

Current rule requires a farm-raised deer keeper (FRDK) whose herd is enrolled in the CWD herd status program to conduct an annual herd census and file a report of that herd census with the department. To comply with new federal requirements under 9 CFR 55.23 (b) (4), the proposed rule requires that a physical herd inventory be completed by a herd veterinarian or department-authorized agent before a FRDK may enroll in the CWD herd status program. Similar physical herd inventories must be completed every three years thereafter to maintain enrollment. For FRDKs currently enrolled in the CWD herd status program, the proposed rule requires the first complete herd inventory to be submitted to the department by December 31, 2015, providing reasonable time to comply.

Current rule requires deer enrolled in the CWD herd status program to have one official identification. To comply with new federal requirements under 9 CFR 55.25 that became effective December 10, 2012, the proposed rule requires that two identifications (one official and the second either official or unique to the herd) be attached to farm-raised deer that are enrolled in the CWD herd status program. The proposed rule also requires the two identifications be recorded in the annual census report, as well as the physical herd inventory conducted every three years.

Current rule specifies that a farm-raised deer is CWD test-eligible if it is at least 16 months old, unless a different age is required under USDA rules. USDA rules, under 9 CFR 55.23 (b) (4), now requires herd owners enrolled in a CWD herd certification program to test deer aged 12 months or older for CWD upon death, including by slaughter or hunt (effective 12/10/12). The proposed rule clarifies that the age of test-eligible deer enrolled in the CWD herd status program is 12 months of age or older in accordance with USDA regulations.

State statutory modifications

All of the programs regulated by state administrative rules are authorized by Wisconsin Statutes. As statutory modifications are made, state rules must also be modified to be in compliance with Wisconsin Statutes. To be in compliance with state statutes, the proposed rule modifies provisions relating to:

1.   Establishing veteran fee waivers for farm-raised deer and fish farm registration (pursuant to 2011 Wisconsin Act 209).

2.   Eliminating certain record keeping requirements for persons who operate a fish farm but sell fish to an individual for the individual's personal use as food or bait (pursuant to 2011 Wisconsin Act 207).

3.   Eliminating the requirement that a person have an import permit when bringing fish or fish eggs from a fish farm in another state to a fish farm in this state if he or she has a valid fish health certificate that covers the fish or fish eggs (pursuant to Wisconsin Act 207).

4.   Eliminating the DNR exemption from the requirement to obtain a permit from the department to bring fish into this state (pursuant to 2011 Wisconsin Act 207).

Flexibility, clarity, and consistency

The proposed rule makes the following modifications to provide for flexibility, clarity and consistency:

1.   Definitions and terms.

  Replacing the term “American association of zoological parks and aquariums" with “association of zoos and aquariums," the current title of the entity.

  Changing the definition of “feeder cattle" in ch. ATCP 10 to be consistent with the definition of feeder cattle in ch. ATCP 12.

  Modifying the definition of “individual" for clarity.

  Creating the definition of “immediate family member" to clarify what individuals are eligible to collect a CWD test sample once properly trained.

  Creating a definition of “salvage value" to clarify that payment received from any source, other than state or federal indemnifications, are considered part of the salvage value of an animal.

  Defining the new term “new world camelids" to allow vicunas to be classified as, and have the same import requirements as, llamas, alpacas, and guanacos, rather than classified as an exotic ruminant with additional import requirements.

2.   Blanket import permit.

  Creating a blanket import permit system to be used when the department is not open for business. An accredited veterinarian or a Wisconsin importer who anticipates a possible purchase of an animal from an out-of-state farm or sale at a time the department is not open for business may apply for a blanket import permit, by providing some specifics, and following up with the details on the first business day.

3.   Johne's program.

  Clarifying that reimbursements under the Johne's program are made only when funds are available. Funds for the Johne's program are eliminated in the 2013-15 biennial budget.

4.   Bovine.

  Eliminating the requirement that official individual identification of bovine animals be inserted in the right ear of the animal.

5.   Swine.

  Eliminating the requirement that a certificate of veterinary inspection (CVI) include a statement that no pseudorabies vaccine has been used on a swine imported into Wisconsin. In the alternative, the proposed rule requires that a statement disclosing the porcine reproductive and respiratory syndrome status (PRRS) of the herd of origin, if known, be included on the CVI of an imported swine. This change was made in consultation with the swine industry which felt the genetics of the hogs bred in Wisconsin were in need of protection from the disease of PRRS.

6.   Equine.

  Changing the timing of the required negative equine infectious anemia (EIA) test result from “during the current calendar year" to “within 12 months" of the purchase, sale transfer or import of the equine into this state. This will make Wisconsin's EIA testing intervals consistent with other states, facilitating interstate movement.

7.   Poultry.

  Eliminating the turkey commingling prohibitions to benefit small poultry farmers.

8.   Farm-raised deer.

  Eliminating a provision on deer moving to a tuberculosis isolation and testing facility as such facilities no longer exist.

  Requiring that FRDKs include in their records the circumstances which resulted in an escape consistent with the information reported to the department whenever a farm-raised deer escapes a registered herd. Whatever is reported to the department must be recorded in herd records.

  Requiring that FRDKs keep a record of where a carcass is buried or otherwise disposed of, consistent with record keeping requirements for deer killed on a hunting preserve.

  Clarifying that all farm-raised deer that are killed intentionally, including escaped deer, must be tested for CWD if they are test-eligible.

  Eliminating the requirement that the livestock premises code be included in the herd records of farm-raised deer added to a herd under the CWD herd status program.

  Establishing training requirements for FRDKs, their immediate family members, and their employees to be qualified to collect CWD test samples. The proposed rule also establishes a fee for becoming a qualified CWD test sample collector.

  Clarifying that official individual identification numbers be included on a certificate of veterinary inspection for farm-raised deer imported or moving in Wisconsin.

9.   Fish.

  Clarifying when a valid fish health certificate must accompany any fish and fish eggs moved from a fish farm that has registered two or more fish farms at a single location. Current rules require a valid health certificate accompany any fish or fish eggs moved between any of the registered fish farms. The proposed rule will require a valid health certificate accompany only fish or fish eggs of a species found to be susceptible to VHS, moving from a type 3 fish farm.

  Eliminating the record keeping requirements for sales of farm-raised fish or fish eggs sold directly to a consumer for bait or food.

10. Appendices to ch. ATCP 10.

  The current rule requires a person who diagnoses, or obtains, credible diagnostic evidence of a disease listed in Appendix A report that finding to the department within one day. The proposed rule removes Mycoplasma meleagridis from Appendix A and adds it to Appendix B which requires the listed diseases to be reported to the department within 10 days.

11. Animal markets, dealers and truckers.

  Clarifying that Class A animal markets may conduct livestock and wild animal sales and auctions on any number of days during the license year.

  Clarifying that Class B animal markets may conduct livestock sales on any number of days during the license year but may hold auctions on no more than 4 days during the license year.

  Clarifying that any person, as principal or agent, engaged in the business of animal dealing must hold an animal dealer license. This language aligns the rule with Wisconsin Statutes.

  Clarifying the language regarding the identification of bovine animals for sale or shipment to slaughter.

  Clarifying, in a note, that if an animal dealer or trucker hauls bovine animals or swine direct to slaughter or to a slaughter sale held at a licensed market, an official backtag is adequate identification for the animal.

  Clarifying that for animal trucker records, the individual backtags do not need to be recorded for animals being moved from a licensed dealer or market direct to slaughter. Also, clarifying that the owner of each animal must be included in animal trucker records.

Standards incorporated by reference

Pursuant to s. 227.21, Stats., DATCP has requested permission from the attorney general to incorporate the following standard by reference in this rule:

United States Department of Agriculture, Animal Plant Health and Inspection Service

•   Veterinary Services Memorandum No. 578.12, “National Uniform Eartagging Systems." (March 15, 2011).

This primary standard was adopted by the United States Department of Agriculture, Animal and Plant Health Inspection Service (USDA-APHIS).

Copies of this standard will be on file with DATCP and the legislative reference bureau.

Waivers

DATCP may waive any provision of ch. ATCP 10, Wis. Admin. Code, if the department finds that the waiver is reasonable and necessary, is consistent with the objectives of ch. ATCP 10, Wis. Admin. Code, and will not conflict with state law. The state veterinarian must issue the waiver in writing. DATCP may not waive a statutory requirement.

Summary of, and comparison with, existing or proposed federal statutes and regulations

The United States Department of Agriculture (USDA) administers federal regulations related to the interstate movement of animals, particularly with respect to certain major diseases. States regulate intrastate movement and imports into the state.

Federal CWD Herd Certification Program (“HCP") requirements include individual animal ID's, regular inventories, and testing of all cervids over 12 months that die for any reason. Interstate movement of cervids will be dependent on a state's participation in the program, maintaining compliance with program requirements, and having achieved herd certification status.

Federal traceability requirements establish minimum national official identification and documentation for the traceability of livestock moving interstate. These regulations specify approved forms of official identification and documentation for each species.

The proposed rules will align state rules relating to CWD and identification requirements for traceability with approaches used by the federal government. These changes will allow for the continued interstate movement of farm-raised deer and other livestock.

Comparison with rules in adjacent states

Surrounding state animal health programs are comparable to those in Wisconsin. Programs for historically important diseases, such as tuberculosis, brucellosis, and CWD, in other Midwest states are similar to Wisconsin as all are based on well-established federal standards.

States may apply to become an Approved State HCP if they meet (or exceed) national program requirements. Cervid owners can enroll and participate in their Approved State CWD HCP. Interstate movement of animals is dependent on a state's participation in the program, maintaining compliance with program requirements, and having achieved herd certification status. Wisconsin and Minnesota have approved CWD HCPs by the federal USDA, Animal and Plant Health Inspection Service (“APHIS"). Illinois, Iowa, and Michigan have conditional approval. Therefore, all are implementing the federal requirements and thus are similar to Wisconsin rules.

To meet federal CWD HCP requirements for farm-raised deer to move interstate, a state program must meet approved forms of official identification. Minnesota, Illinois, Iowa, and Michigan have applied for their programs to be accepted as meeting the federal traceability identification requirements in order to move livestock interstate. Therefore, all are implementing the federal requirements and those state rules should be similar to Wisconsin's.

Summary of factual data and analytical methodologies

This proposed rule does not depend on any complex analysis of data. This proposed rule makes minor, technical changes, as well as changes to comply with USDA regulations relating to traceability, and the CWD herd certification program, in order to facilitate Wisconsin livestock in interstate commerce.

Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis

The majority of these proposed rule changes are to align Wisconsin Administrative Code with federal regulations, state statutory requirements and previous rule modifications.

The most significant rule changes (and fiscal impact) relate to farm-raised deer keepers enrolled in the Wisconsin CWD herd status program. Division of Animal Health staff met with a group of farm-raised deer keepers and their lobbyists in August 2012 to discuss the new federal requirements and how the rule would be updated to reflect the new federal regulations. Many of the small business fiscal effects were inferred from that meeting as well as discussions with individual FRDKs.

Effect on Small Business

The majority of these rule modifications are technical and have no fiscal effect or have already been implemented by the division due to prior changes in state law. Many of the rule modifications will ease program requirements and may reduce costs to small business. The rule modifications that may have a greater economic impact on small business are changes required to align with federal USDA regulations relating to farm-raised deer enrolled in the CWD herd status program.

The entities that may be affected by this rule modification include the following:

1.   Wisconsin importers.

  Vicunas. The import requirements for vicunas will be less costly and those reduced costs may be realized by the recipient of the vicuna. However, the number of vicunas imported into the state of Wisconsin is negligible and cost savings indeterminate.

  Swine. The import costs for swine will most likely remain the same as the CVI content requirement for swine imports has replaced the pseudorabies vaccine statement with a statement regarding PRRS status of the herd of origin.

2.   Poultry farmers.

  Small poultry farmers have benefited from the elimination of the turkey commingling prohibitions in the proposed rule. The department has already issued a waiver from this rule prohibition so any cost savings from this rule modification have already been realized.

3.   Farm-raised deer keepers (FRDKs) with herds enrolled in the CWD herd status program.

  CWD test samples (State changes). Farm-raised deer keepers may realize a significant cost savings if they, their employees or their immediate family members choose to complete department-approved training and become qualified by the department to collect CWD test samples.

  The qualification will allow the FRDK (or his/her employee or immediate family member) to collect CWD test samples rather than hiring a veterinarian to do so at an estimated $75 per deer (depending on the number of deer tested at one time, this cost could be lower). This change is significant as 100 percent of all farm-raised deer aged 12 months or older enrolled in a CWD herd status program must be tested for CWD upon death, including those sent to slaughter. In addition, for non-enrolled herds for deer 16 months of age or older, 100 percent that are killed intentionally or die by accidental death or natural causes must be tested, 25 percent sent to slaughter must be tested and 50 percent that are intentionally killed while on a hunting preserve must be tested. Cost savings for non-enrolled herds could also be significant.

  The training for this qualification will first be provided in the summer of 2013 (before promulgation of this rule) and will be free of charge. The proposed rule will require a nonrefundable application fee of $50 every five years per applicant so the department can recover some of the costs in the future of providing the CWD test training and qualification program.

  Beginning June 30, 2018, veterinarians will also be required to take CWD test sample training to refresh their sampling techniques and to become qualified collectors. This will be a new cost to veterinarians who choose to collect CWD test samples.

  Two forms of identification (Federal changes). Keepers of farm-raised deer enrolled in the CWD herd status program will have to apply two forms of identification to each deer that is 12 months of age or older and provide a complete herd inventory every three years by a veterinarian or department-authorized agent.

  Participation in the CWD herd status program is voluntary. There are approximately 330 farm-raised deer keepers with 14,225 deer (elk, red deer, white-tailed deer, fallow, sika, reindeer, muntjac, moose, and mule deer) enrolled in the CWD herd status program in Wisconsin.

  Approximately 50 of those FRDKs currently move their deer interstate and likely already have two identifications attached to each deer. These individuals also have their herds certified as tuberculosis-free since it is a requirement to move deer. A tuberculosis-free herd must be re-certified every three years by testing deer 12 months of age or older by a veterinarian. The newly required complete herd inventory can coincide with the tuberculosis testing every three years but must be done for all deer in the herd (including deer under 12 months of age). Because the herd inventory includes all deer (including deer under 12 months of age) and the tuberculosis testing includes only deer over 12 months of age, there will be an increase in cost to FRDKs having young deer under 12 months of age. The cost for a veterinarian to provide tuberculosis testing is approximately $100 to $200 per hour. The number of additional hours needed and costs will vary depending on the number of deer under 12 months of age that will need to be inventoried in each herd. It is unknown how many herds will have deer under 12 months of age.

  Of the remaining 280 FRDKs, approximately 190 are enrolled in the CWD herd status program and many move their deer intra-state. Approximately 150 of these FRDKs have their herds certified as tuberculosis-free. These FRDKs will have the same fiscal costs as those described in the previous paragraph. The FRDKs that do not have herds certified as tuberculosis-free may incur the fiscal costs described in the following paragraphs.

  Approximately 90 of the 280 FRDKs who don't move interstate are enrolled in the CWD herd status program but do not move live deer, do not have their herds certified as tuberculosis-free, and likely do not have two identifications attached to their adult deer. These FRDKs may choose to stop participation in the CWD herd status program. However, they will then need to comply with fencing requirements specified by the Department of Natural Resources under s. NR 16.45 (2), Wis. Admin. Code. The DNR rule requires white-tailed deer farms with perimeter fences less than 80 acres to be either enclosed by a double or solid fence (unless the deer farm is enrolled in the CWD herd status program).

  The rules will have a greater fiscal impact on these FRDKs as they probably do not currently have facilities to catch deer in order to apply the required identification or to complete a physical herd inventory every three years. Depending on the animal, each deer may need to be chemically immobilized (tranquilized) in order to conduct the inventory, causing a greater risk of death, injury, and cost to the owner.

  It is important to note that if these rule modifications are not promulgated to comply with federal regulations, Wisconsin may jeopardize its approval from USDA on implementing its herd certification program which allows keepers of farm-raised deer enrolled in the CWD herd status program to move deer interstate. No USDA approval means there is no interstate movement of deer.

4.   Fish farmers.

  Type 1 and 2 fish farmers may realize a cost savings as they will no longer have to have a veterinarian prepare a valid health certificate for fish or fish eggs moving from any of the registered fish farms at the same location. It is unknown how many type 1 and 2 fish farms move fish or fish eggs among the registered fish farms at the same location. Therefore, any savings are indeterminate.

5.   Owners of rodeo and exhibition cattle.

  Owners of rodeo and exhibition cattle will have to apply eartags to their cattle to improve traceability. However, because these eartags are free, any fiscal impact should be minimal.

6.   Animal markets.

  Owners of Wisconsin animal markets selling equine may experience a slight decrease in costs as federal rules now require that horses imported to markets have a certificate of veterinary inspection (CVI) before entering the market. Current state rules allow horses to be imported to markets without a CVI if shipped directly to slaughter within 10 days of arrival but if the horse then leaves the market other than for slaughter or is commingled with other equine, the market owner must then have a Wisconsin certified veterinarian issue a CVI for that horse. Under the proposed rule, the equines would come to market with a CVI. It is unknown how many markets this provision may affect and any cost savings are indeterminate.

Agency Contact Person

Loretta Slauson

Department of Agriculture, Trade and Consumer Protection

P.O. Box 8911

Madison, WI 53708-8911

Telephone: [phone]

E-Mail: [e-mail]

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA 2049 (R 07/2011) ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Ch. ATCP 10, animal diseases and movement and ch. ATCP 12, animal markets, dealers and truckers.
Subject
Animal Disease and Movement and Animal Markets, Truckers and Dealers.
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO X PRS ⍽ SEG ⍽ SEG-S			s. 20.115 (2) (ha), Stats.
Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect X Indeterminate	X Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs X Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		X Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The majority of the proposed rule changes are technical or provide for flexibility, clarity and consistency. Significant proposed rule changes are being made because: • The current rule is inconsistent with federal regulations relating to animal traceability and the CWD Herd Certification Program (HCP). Therefore, state rules must be modified to allow Wisconsin livestock to move interstate. • The current rule is inconsistent with Wisconsin Statutes that were modified in the last biennium. Therefore, the rules must be modified to align and not conflict with state law.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
The majority of these rule modifications are technical and have no fiscal effect or have already been implemented by the division due to prior changes in state law. Many of the rule modifications will ease program requirements and may reduce costs to small business. The entities that will be affected by these changes include: 1. Farm-raised deer keepers. 2. Individuals that become qualified (as registered farm-raised deer keepers, or family members or employees of registered farm-raised deer keepers) by the department to collect CWD test samples. 3. Wisconsin importers of vicunas and swine. 4. Poultry farmers. 5. Fish farmers. 6. Owners of rodeo and exhibition cattle. 7. Animal markets. The rule modifications that may have a greater economic impact on small business are changes required to align state rules with federal USDA regulations relating to farm-raised deer enrolled in the CWD herd status program. This rule will not have any significant negative economic or fiscal impact on business sectors, public utility rate payers, local governmental units, or the state's economy as a whole and does not create additional requirements that local governments must follow.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The majority of these rule modifications are technical or ease program requirements. There are no alternatives suggested for these changes. The changes made as a result of changes in federal regulations will allow animals from Wisconsin to move interstate. Preventing and controlling animal disease is the cornerstone of protecting American animal agriculture. While ranchers and farmers work hard to protect their animals and their livelihoods, there is never a guarantee that their animals will be spared from disease. Traceability does not prevent disease, but knowing where diseased and at-risk animals are, where they have been, and when, is indispensable in emergency response and in ongoing disease control and eradication programs. If the rule is not modified to align with federal regulations, state rules will conflict with federal regulations causing confusion for individuals wanting to move livestock interstate, and preventing that movement. Further, Wisconsin may jeopardize its approval from USDA to implement its Herd Certification Program (HCP) for cervids, which allows keepers of farm-raised deer enrolled in the CWD herd status program to move deer interstate.
Long Range Implications of Implementing the Rule
Overall, this rule continues to provide for disease control and prevention for the benefit of the entire livestock and aquaculture industry. In many cases, this rule will improve flexibility and reduce costs for individual businesses, including small businesses.
Compare With Approaches Being Used by Federal Government
The United States Department of Agriculture (USDA) administers federal regulations related to the interstate movement of animals, particularly with respect to certain major diseases. States regulate intrastate movement and imports into the state. Federal CWD HCP requirements include individual animal IDs, regular inventories, and testing of all cervids over 12 months of age that die for any reason. Interstate movement of cervids will be dependent on the home state's participation in the program, maintaining compliance with program requirements, and achieving herd certification status. Federal traceability requirements establish minimum national official identification and documentation for the traceability of livestock moving interstate. These new federal regulations specify approved forms of official identification and documentation for each species. The proposed rule modifications will align state rules relating to CWD and identification requirements for traceability with approaches used by the federal government. These changes will allow for the continued interstate movement of farm-raised deer and other livestock.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan, and Minnesota)
Surrounding state animal health programs are broadly comparable to those in Wisconsin. Programs for historically important diseases, such as tuberculosis, brucellosis and CWD, tend to be fairly similar between states and are based on well-established federal standards. States may apply to become an approved State HCP if they meet (or exceed) national program requirements. Cervid owners can enroll and participate in their state's approved CWD HCP. Interstate movement of animals will be dependent on a deer owner's home state's participation in the program, maintaining compliance with program requirements, and achieving herd certification status. Wisconsin and Minnesota have CWD HCPs approved by the federal Animal and Plant Health Inspection Service (APHIS). Illinois, Iowa, and Michigan have conditional approval. Therefore, all neighboring states are moving to implement federal requirements and should ultimately have similar rules. In addition to meeting federal CWD HCP requirements for farm-raised deer to move interstate, livestock, including farm-raised deer, are also required to have federally approved forms of official identification to move interstate. Minnesota, Illinois, Iowa, and Michigan must meet the federal traceability identification requirements in order to move livestock interstate. All these neighboring states are in the process of implementing the federal identification requirements and should ultimately have similar rules.
Comments Received in Response to Web Posting and DATCP Response
No comments were received in response either to the posting on the DATCP external website or the statewide administrative rules website.

Notice of Hearing

Agriculture, Trade and Consumer Protection

CR 13-063

(DATCP Docket # 13-R-02)

NOTICE IS HEREBY GIVEN THAT the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) will hold a public hearing on a proposed rule to repeal s. ATCP 17.01 (19) and ch. ATCP 53; repeal and recreate ch. ATCP 21, Appendix A, amend ss. ATCP 17.01 (9), 21.21 (1) (c) 1., 60.08 (3) and (6), 60.01 (23m), 70.03 (7) (b) 1., 80.01 (7) (c), 80.01 (27m), 80.24 (3) (a) 2., and 80.24 (3) (b); and, create s. ATCP 80.24 (3) (a) 3., relating to technical changes to Livestock Premises Registration; Plant Inspection and Pest Control; Agricultural Enterprise Areas; Dairy Farms; Food Processing Plants; Dairy Plants.

Hearing Information

Date:   Wednesday, September 11, 2013
Time:   10:00 a.m. to 12:00 p.m.
Location:   Boardroom, Room 106
  Department of Agriculture, Trade and
  Consumer Protection
  2811 Agriculture Drive
  Madison, WI 53718

Hearing impaired persons may request an interpreter for this hearing. Please make reservations for a hearing interpreter by August 30, 2013, by writing to Kelly Monaghan, Office of the Secretary, P.O. Box 8911, Madison, WI 53708-8911; or by emailing [e-mail]; or by telephone at [phone]. Alternatively, you may contact the DATCP TDD at [phone]. The hearing facility is handicap accessible.

Appearances at the Hearings, Copies of Proposed Rule, and Submittal of Written Comments

DATCP invites the public to attend the hearings and comment on the proposed rule. Following the public hearing, the hearing record will remain open until September 24, 2013, for additional written comments. Comments may be sent to the Office of the Secretary at the address below, or to [e-mail], or to http://adminrules.wisconsin.gov.

Kelly Monaghan

Department of Agriculture, Trade and Consumer Protection

P.O. Box 8911

Madison, WI 53708-8911

Telephone: [phone]

E-Mail: [e-mail]

You can obtain a free copy of this hearing draft rule and related documents including the economic impact analysis by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Office of the Secretary, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling [phone] or by emailing [e-mail]. Copies will also be available at the hearing. To view the hearing draft rule online, go to: http://adminrules.wisconsin.gov.

Comments or concerns relating to small business may also be addressed to DATCP's small business regulatory coordinator, Keeley Moll, at the address above, or by email to [e-mail], or by telephone at [phone].

Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection

This rule makes minor technical changes to a number of current rules administered by the department of agriculture, trade and consumer protection (“DATCP").

Statutes interpreted

Statutes Interpreted: ss. 94.01 (1), 94.81 (1m) and (2m), 95.51, 97.20, 97.22, and 97.29, Stats.

Statutory authority

Statutory Authority: ss. 93.07 (1), 94.01 (1), 94.81 (2m), 95.51 (7), 97.20 (4), 97.22 (8), and 97.29 (5), Stats.

Explanation of statutory authority

DATCP has general authority, under s. 93.07 (1), Stats., to adopt rules to interpret laws under its jurisdiction. It also has specific rulemaking authority related to various matters addressed by this rule (see above). This rule makes minor changes to a number of different rules administered by DATCP. The changes are adopted under essentially the same authority used to adopt the original rules.

Related rules or statutes

This rule is not substantially affected by statutes or rules other than those identified in this rule.

Plain language analysis

This rule makes minor or technical changes to a number of current DATCP rules. This rule does all of the following:

Livestock premises registration

This rule amends current DATCP rule ch. ATCP 17, relating to Livestock Premises Registration. In s. ATCP 17.01, certain terms used in the chapter are defined. In that section, there are currently two definitions for “captive game birds," at s. ATCP 17.01 (9) and (19). This rule amends s. ATCP 17.01 (9) by amending the current definition to conform to the definition for “captive game bird" now found in s. ATCP 17.01 (19), and repealing the definition now found in s. ATCP 17.01 (19).

Plant inspection and pest control

This rule makes two minor technical changes in ch. ATCP 21. The current rule defines, in s. ATCP 21.21 (1) (c) 1., an “infested area" by listing the states known to be infected at the time the current rule was adopted. The proposed amendment adds the states of North Carolina, Virginia, Ohio, and Pennsylvania to the list of states included in that definition. Each of those states now has quarantined counties based on a detection of TCD (Thousand Cankers Disease).

Appendix A to ch. ATCP 21 is being repealed and replaced because Hemlock Woolly Adelgid has been detected in additional counties in other states since the last time ch. ATCP 21 was updated. The proposed language identifies those new counties. In some states, the status has changed so that the entire state is now considered generally infested and the state as a whole is now listed. Because this pest is not federally regulated, DATCP cannot reference the Code of Federal Regulations to identify infested areas, but has to identify them specifically in our rule.

Agricultural enterprise areas

This rule repeals ch. ATCP 53 in its entirety for the following reasons: Section 91.84, Stats., authorizes the department to designate agricultural enterprise areas (AEAs) for the Farmland Preservation Program. Section 91.84 (2), Stats., previously required that designation to be made through the emergency rulemaking process. For two years, the department used emergency rulemaking to designate AEAs in ch. ATCP 53. In 2011 Wis. Act 253, s. 91.84 (2), Stats., on emergency rulemaking was repealed, sub. (2m) was created (requiring all previous designations by rule to remain in effect only through December 31, 2012), and other provisions of s. 91.84, Stats., were amended to authorize the department's secretary to designate AEAs by order. Since, as of January 1, 2013, ch. ATCP 53 is no longer in effect, this proposed rule repeals that chapter in its entirety.

Dairy farms

This rule makes the following technical changes to ch. ATCP 60 relating to dairy farms. In s. ATCP 60.08 (3) and (6), the references to “NR 811 or 812" are changed to “NR 810, 811, or 812" due to the splitting of the former ch. NR 811 into chs. NR 810 and 811. This rule also amends the reference in s. ATCP 60.01 (23m) to the “2005 revision" of the Pasteurized Milk Ordinance (the “PMO") to refer to the “2011 revision" of the PMO, since the PMO is updated every two years.

Food processing plants

This rule amends ch. ATCP 70 by making the following technical change. Section ATCP 70.03 (7) (b) 1. currently exempts a restaurant, which holds a permit under s. 254.64, Stats., from the requirement to obtain a food processing plant license if the restaurant “does not process food for wholesale distribution, and is not engaged in canning or production of processed fish." This rule would amend that language to read “does not process food for wholesale distribution, and is not engaged in canning of food products or in the production of processed fish." The proposed change clarifies that “canning" applies to all canned foods and not just processed fish.

Dairy plants

This rule amends ch. ATCP 80 relating to dairy plants as follows. Section ATCP 80.01 (7) (c) defines a “dairy product" as a “commodity in which milk or any milk product or by-product is a principal ingredient." This rule amends this section by adding, after “ingredient," the following: “except prepared foods made in a licensed food processing plant for which the federal food and drug administration has not prescribed a standard of identity under title 21 of the code of federal regulations and which contain dairy products manufactured at a dairy plant from ingredients that are pasteurized or are produced under other processes that eliminate or reduce to an acceptable level the food safety hazards associated with the dairy products, including aseptically processed foods, high acid foods, heat treated foods, aged foods, cold pack foods, and similarly processed foods." The proposed amendment incorporates new statutory language in 2011 Wisconsin Act 195, which narrows the definition of a dairy product in s. 97.20 (2) (e) 5., Stats.

This rule amends s. ATCP 80.01 (27m) by changing the reference to the “2005 revision" of the PMO to the “2011 revision" of the PMO.

This rule amends s. ATCP 80.24 (3) (a) 2. by deleting “dried whey and nonfat dry milk." This rule amends s. ATCP 80.24 (3) (a) by adding a new section, s. ATCP 80.24 (3) (a) 3., to read: “3. 10,000 per gram for nonfat dry milk, dried whey and dry milk products." This rule amends s. ATCP 80.24 (3) (b) by deleting “other than cultured grade A dairy products" from that section. These changes reflect changes in the most recent PMO.

Standards incorporated by reference

Pursuant to s. 227.21, Stats., DATCP has requested permission from the Department of Justice to incorporate the updated technical standards incorporated by reference in this rule. Copies of the updated standards will be kept on file with DATCP and the Legislative Reference Bureau.

Summary of, and comparison with existing or proposed federal statutes and regulations

The vast majority of dairy farms in Wisconsin have Grade “A" permits, which means that their milk, or pasteurized milk and certain other dairy products made from the farm's milk, can be shipped across state and international boundaries. Milk moving in this manner, referred to as Grade “A" milk, must be produced, transported, and processed in accordance with the Pasteurized Milk Ordinance (PMO). The PMO is a document written by the US Food and Drug Administration and regulators from the 50 states and Puerto Rico, which participate in the biennial National Conference on Interstate Milk Shipments, and it is periodically revised. State regulations governing the production and processing of Grade “A" milk must be at least as stringent, and consistent with, the PMO. Some states adopt the PMO by reference; Wisconsin regularly revises ch. ATCP 60 (Dairy Farms), ch. ATCP 82 (Milk Haulers), and ch. ATCP 80 (Dairy Plants) to ensure the necessary stringency and consistency with the current PMO.

Comparison with rules in adjacent states

The housekeeping and technical rules changes proposed in this rule will not create any disparities between Wisconsin and the adjacent states.

Summary of factual data and analytical methodologies

This rule does not depend on any complex analysis of data. This rule merely makes minor or technical changes to current rules.

Analysis and supporting documents used to determine effect on small business

Because this bill makes minor housekeeping technical changes, no significant analysis or documentation was required to determine that the proposed rule will have no impact on small businesses.

Effect on Business

This rule will not have any impact on small business or other business. This rule makes minor technical “housekeeping" changes that will not have any impact on business standards, costs or operations. See the complete initial regulatory flexibility analysis that accompanies this rule.

Environmental Impact

This “housekeeping" rule will have no significant impact on the environment.

Agency Contact Person

Kelly Monaghan

Department of Agriculture, Trade and Consumer Protection

P.O. Box 8911

Madison, WI 53708-8911

Telephone: [phone]

E-Mail: [e-mail]

ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Chs. ATCP 17, 21, 53, 60, 70 and 80, Technical Rule Changes
Subject
Technical Rule Changes
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
This rule makes minor or technical changes to a number of current DATCP rules. This rule does all of the following: Livestock Premises Registration This rule amends current DATCP rule ch. ATCP 17, relating to Livestock Premises Registration. In s. ATCP 17.01, certain terms used in the chapter are defined. In that section, there are currently two definitions for “captive game birds," at s. ATCP 17.01 (9) and (19). This rule amends s. ATCP 17.01 (9) by amending the current definition to conform to the definition for “captive game bird" now found in s. ATCP 17.01 (19), and repealing the definition now found in s. ATCP 17.01 (19). Plant Inspection and Pest Control This rule makes two minor technical changes in ch. ATCP 21. The current rule defines, in s. ATCP 21.21 (1) (c) 1., an “infested area" by listing the states known to be infected at the time the current rule was adopted. The proposed amendment adds the states of North Carolina, Virginia, Ohio, and Pennsylvania to the list of states included in that definition. Each of those states now has quarantined counties based on a detection of TCD (Thousand Cankers Disease). Appendix A to ch. ATCP 21 is being repealed and replaced because Hemlock Woolly Adelgid has been detected in additional counties in other states since the last time ch. ATCP 21 was updated. The proposed language identifies those new counties. In some states the status has changed so that the entire state is now considered generally infested and the state as a whole is now listed. Because this pest is not federally regulated, DATCP cannot reference the Code of Federal Regulations to identify infested areas, but has to identify them specifically in our rule. Agricultural Enterprise Areas This rule repeals ch. ATCP 53 in its entirety for the following reasons: Section 91.84, Stats., authorizes the department to designate agricultural enterprise areas (AEAs) for the Farmland Preservation Program. Section 91.84 (2), Stats., previously required that designation to be made through the emergency rulemaking process. For several years, the department used emergency rulemaking to designate AEAs in ch. ATCP 53. In 2011 Wis. Act 253, s. 91.84 (2), Stats., on emergency rulemaking was repealed, sub. (2m) was created (requiring all previous designations by rule to remain in effect only through December 31, 2012), and other provisions of s. 91.84, Stats., were amended to authorize the department's secretary to designate AEAs by publication of a special order. Since, as of January 1, 2013, ch. ATCP 53 is no longer in effect, this proposed rule repeals that chapter in its entirety. Dairy Farms This rule makes the following technical changes to ch. ATCP 60 relating to dairy farms: In s. ATCP 60.08 (3) and (6), the references to “NR 811 or 812" are changed to “NR 810, 811, or 812" due to the splitting of the former ch. NR 811 into chs. NR 810 and 811. This rule also amends the reference in s. ATCP 60.01 (23m) to the “2005 revision" of the Pasteurized Milk Ordinance (the “PMO") to refer to the “2011 revision" of the PMO, since the PMO is updated every two years. Food Processing Plants This rule amends ch. ATCP 70 by making the following technical change: Section ATCP 70.03 (7) (b) 1. currently exempts a restaurant, which holds a permit under s. 254.64, Wis. Stats., from the requirement to obtain a food processing plant license if the restaurant “does not process food for wholesale distribution, and is not engaged in canning or production of processed fish." This rule would amend that language to read “does not process food for wholesale distribution, and is not engaged in canning of food products or in the production of processed fish." The proposed change clarifies that “canning" applies to all canned foods and not just processed fish.
Dairy Plants This rule amends ch. ATCP 80 relating to dairy plants as follows: Section ATCP 80.01 (7) (c) defines a “dairy product" as a “commodity in which milk or any milk product or by-product is a principal ingredient." This rule amends this section by adding, after “ingredient," the following: “except prepared foods made in a licensed food processing plant for which the federal food and drug administration has not prescribed a standard of identity under title 21 of the code of federal regulations and which contain dairy products manufactured at a dairy plant from ingredients that are pasteurized or are produced under other processes that eliminate or reduce to an acceptable level the food safety hazards associated with the dairy products, including aseptically processed foods, high acid foods, heat treated foods, aged foods, cold pack foods, and similarly processed foods." The proposed amendment incorporates new statutory language in, 2011 Wisconsin Act 195, which narrows the definition of a dairy product in s. 97.20 (2) (e) 5., Wis. Stats. This rule amends s. ATCP 80.01 (27m) by changing the reference to the “2005 revision" of the PMO to the “2011 revision" of the PMO. This rule amends s. ATCP 80.24 (3) (a) 2. by deleting “dried whey and nonfat dry milk." This rule amends s. ATCP 80.24 (3) (a) by adding a new section, s. ATCP 80.24 (3) (a) 3., to read: “3. 10,000 per gram for nonfat dry milk, dried whey and dry milk products." This rule amends s. ATCP 80.24 (3) (b) by deleting “other than cultured grade A dairy products" from that section. These changes reflect changes in the most recent PMO.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
Small Businesses This rule makes technical housekeeping changes that will have no effect upon small businesses. Utility Rate Payers The rule will have no impact on utility rate payers. Local Governments This rule will not impact local governments. Local governments will not have any implementation or compliance costs. General Public This rule makes technical changes to the existing rules identified above. The proposed rule will not have any economic impact on the general public or the State's economy different from the impact of the existing rules that are proposed to be amended.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Benefits This rule will benefit the public and various business sectors, as described above, by making technical changes to existing rules. General Public The general public and consumers will benefit from the technical changes in this rule through the clarification and updating of existing rules. Alternatives This rule makes necessary technical changes in existing rules. If DATCP does not make the proposed technical changes, there will continue to be outdated provisions in existing regulations, inconsistencies between regulations and referenced documents, and certain regulations will lack necessary clarity.
Long Range Implications of Implementing the Rule
Long-term, implementing the rule will benefit businesses and the general public for the reasons stated above.
Compare With Approaches Being Used by Federal Government
The technical changes are proposed to ensure that the specified existing DATCP rules remain consistent with federal statutes and regulations administered by the United States Department of Agriculture and the Food and Drug Administration. The vast majority of dairy farms in Wisconsin have Grade “A" permits, which means that their milk, or pasteurized milk and certain other dairy products made from the farm's milk, can be shipped across state and international boundaries. Milk moving in this manner, referred to as Grade “A" milk, must be produced, transported, and processed in accordance with the Pasteurized Milk Ordinance (PMO). The PMO is a document written by the US Food and Drug Administration and regulators from the 50 states and Puerto Rico, which participate in the biennial National Conference on Interstate Milk Shipments, and it is periodically revised. State regulations governing the production and processing of Grade “A" milk must be at least as stringent, and consistent with, the PMO. Some states adopt the PMO by reference; Wisconsin regularly revises ch. ATCP 60 (Dairy Farms), ch. ATCP 82 (Milk Haulers), and ch. ATCP 80 (Dairy Plants) to ensure the necessary stringency and consistency with the current PMO.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
The housekeeping and technical rules changes proposed in this rule will not create any disparities between Wisconsin and the adjacent states. Comments Received in Response to Web Posting and DATCP Response No comments were received in response either to the posting on the DATCP external website or the statewide administrative rules website.

Notice of Hearing

Insurance

CR 13-059

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., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting section Ins 51.01, Wis. Adm. Code, relating to risk based capital requirements and affecting small business.

Hearing Information

Date:   September 5, 2013
Time:   10:30 a.m., or as soon thereafter as the matter
  may be reached
Location:   Office of the Commissioner of Insurance
  Room 227
  125 South Webster St., 2nd Floor
  Madison, WI

Written comments can be mailed to:

Sarah E. Norberg

Legal Unit — OCI Rule Comment for Rule Ins 51.01

Office of the Commissioner of Insurance

PO Box 7873

Madison, WI 53707-7873

Written comments can be hand delivered to:

Sarah E. Norberg

Legal Unit — OCI Rule Comment for Rule Ins 51.01

Office of the Commissioner of Insurance

125 South Webster St — 2nd Floor

Madison, WI 53703-3474

Comments can be emailed to:

Sarah E. Norberg

[e-mail]

Comments submitted through the Wisconsin Administrative Rule Web site at: http://adminrules.wisconsin.gov on the proposed rule will be considered.

The deadline for submitting comments is 4:00 p.m. on September 19, 2013.

Summary of Proposed Rule and Fiscal Estimate

For a summary of the rule, see the analysis contained in the attached proposed rulemaking order. There will be no state or local government fiscal effect. The full text of the proposed changes, a summary of the changes, and the fiscal estimate are attached to this Notice of Hearing.

Initial Regulatory Flexibility Analysis

Notice is hereby further given that pursuant to s. 227.114, Stats., the proposed rule may have an effect on small businesses. The initial regulatory flexibility analysis is as follows:

a.   Types of small businesses affected:

Domestic life and health insurers that complete a life annual statement and domestic fraternal insurers.

b.   Description of reporting and bookkeeping procedures required:

None beyond those currently required.

c.   Description of professional skills required:

None beyond those currently required.

OCI Small Business Regulatory Coordinator

The OCI small business coordinator is Louie Corneillus and may be reached at phone number [phone] or at email address [e-mail].

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: [e-mail], [phone], 125 South Webster Street — 2nd Floor, Madison, WI or PO Box 7873, Madison, WI 53707-7873.

PROPOSED ORDER AMENDING A RULE

Office of the Commissioner of Insurance

Rule No. 145-: To amend s. Ins 51.01 (4) (a) 2., Wis. Admin. Code.

Relating to: risk based capital requirements and affecting small business.

The statement of scope of this rule, SS 069-12, was approved by the Governor on September 13, 2012, published in Register No. 681, on September 30, 2012, and approved by the Commissioner on October 15, 2012.

Analysis Prepared by the Office of the Commissioner of Insurance (OCI)

1. Statutes interpreted

ss. 623.11 (1) and (2), Wis. Stats.

2. Statutory authority

ss. 227.11 (2) (a), 623.11 (1) and (2), Wis. Stats.

3. Explanation of OCI's authority to promulgate the proposed rule under these statutes

Pursuant to s. 623.11 (1), Wis. Stats., “The commissioner shall, when necessary, determine the amount of compulsory surplus that an insurer is required to have in order not to be financially hazardous under s. 645.41 (4), Wis. Stats., as an amount that will provide reasonable security against contingencies affecting the insurer's financial position that are not fully covered by reserves or reinsurance."

Pursuant to s. 623.11 (2), Wis. Stats., “The commissioner may . . . establish by rule minimum ratios for the compulsory surplus in relation to any relevant variables, including the following: (a) amounts at risk; (b) premiums written or premiums earned; (c) liabilities; (d) equity investments of all or certain kinds in combination with any of the variables under pars. (a) to (c)."

The company action level provision under the regulation provides an early warning that an insurer might be approaching a financially hazardous condition. The proposed change to the regulation would modify a single variable, as authorized by s. 623.11 (2), Wis. Stats., potentially resulting in an earlier warning that a company is approaching financially hazardous condition.

4. Related statutes or rules

Section 623.11, Wis. Stats. and s. Ins 51.01, Wis. Admin. Code, both address risk based capital requirements. The proposed rule merely updates the minimum ratio for insurers.

5. The plain language analysis and summary of the proposed rule

The existing regulation establishes risk based capital requirements for an insurer based on the risks inherent in the insurer's operations by requiring it to perform a calculation of its authorized control level risk based capital. Under the current regulation, a company action level event, which requires the company to take certain remedial steps, is triggered if:

(a) An insurer's capital is between 1.5 and 2.0 times the authorized control level risk based capital, or

(b) The insurer's capital is at or below 2.5 times the authorized control level risk based capital and the insurer has a negative trend test result, calculated pursuant to the risk based capital instructions.

The proposed rule would change the “2.5" to “3.0"; i.e., a company action level event would occur if the insurer's capital is at or below 3.0 times the authorized control level risk based capital and the insurer has a negative trend test result.

The proposed rule will update this regulation to be consistent with the NAIC model regulation and will also bring Wisconsin's requirements for life insurers into alignment with the requirements for health insurers and property and casualty insurers.

The proposed rule will apply to domestic life and health insurers that complete a life annual statement, and domestic fraternal insurers. The impact is expected to be minimal.

6. Summary of and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule

The Office is unaware of any existing or proposed federal regulations that are intended to address the activities to be regulated by the proposed rule change.

7. Comparison of similar rules in adjacent states as found by OCI

Illinois: 215 ILCS 5/35A-15 (a) (1) (B) (2013) contains provisions comparable to Wisconsin's existing rule.

Iowa: IAC s. 521E.3 1. a. (2) (2013) contains provisions comparable to Wisconsin's existing rule.

Michigan: MCLS s. 50.1204a (2013) adopts the NAIC Model Law by reference.

Minnesota: Minn. Stat. s. 60A.60 Subd. 11 (1) (2013) contains provisions less stringent that Wisconsin's existing rule.

8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule

The Office is proposing this rule change to make the regulation consistent with the NAIC model regulation for the purposes of maintaining accreditation. The amendment will also bring Wisconsin's requirements for life insurers into alignment with the requirements for health insurers and property and casualty insurers. Little, if any, Wisconsin insurers will be affected by this rule change.

9. Any analysis and supporting documentation that OCI used in support of OCI's determination of the rule's effect on small businesses under s. 227.114

Based upon revenue and ownership structure, there may be an effect on small businesses but any effect would be minimal as very few, if any, insurers meet the definition of a small business and non-insurance small businesses are protected by this proposed rule change as the amendment provides an earlier warning that a life insurer might be approaching a financially hazardous condition.

10. See the attached Private Sector Fiscal Analysis.

11. A description of the Effect on Small Business

There may be an effect on small businesses but any effect would be minimal as very few, if any, insurers meet the definition of a small business and non-insurance small businesses are protected by this proposed rule change as the amendment provides a an earlier warning that a life insurer might be approaching a financially hazardous condition.

12. Agency contact person

A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the Web site at: http://oci.wi.gov/ocirules.htm

or by contacting Inger Williams, OCI Services Section, at:

Phone: [phone]

Email: [e-mail]

Address: 125 South Webster St — 2nd Floor, Madison WI 53703-3474

Mail: P.O. Box 7873, Madison, WI 53707-7873

13. Place where comments are to be submitted and deadline for submission

The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in the Notice of Hearing.

Mailing address:

Sarah E. Norberg

Legal Unit — OCI Rule Comment for Rule Ins 51.01

Office of the Commissioner of Insurance

PO Box 7873

Madison WI 53707-7873

Street address:

Sarah E. Norberg

Legal Unit — OCI Rule Comment for Rule Ins 51.01

Office of the Commissioner of Insurance

125 South Webster St — 2nd Floor

Madison WI 53703-3474

Email address:

Sarah E. Norberg

[e-mail]

Web site: http://oci.wi.gov/ocirules.htm

The proposed rule changes are:

SECTION 1. Ins 51.01 (4) (a) 2., is amended to read:

Ins 51.01 (4) (a) 2. If a life or health insurer that completes the life annual statement for the reporting year, the insurer has total adjusted capital which is greater than or equal to its company action level risk based capital but less than the product of its authorized control level risk based capital and 2.53.0 and has a negative trend.

SECTION 2. These changes first apply January 1, 2014.

SECTION 3. These changes will take effect on the first day of the month after publication, as provided in s. 227.22 (2) (intro.), Wis. Stats.

SECTION 4. This section may be enforced under ss. 601.41, 601.64, 623.11, Wis. Stats., or any other enforcement provision of chs. 600 to 646, Wis. Stats.

Private Sector Fiscal Analysis for section Ins 51.01 relating to risk based capital requirements and affecting small business

This rule change will have no significant effect on the private sector regulated by OCI.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (C04/2011)					Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES — FISCAL ESTIMATE
1.   Fiscal Estimate Version
X Original ⍽ Updated ⍽ Corrected
2.   Administrative Rule Chapter Title and Number   Ins 51.01 (4) (a) 2.
3.   Subject   Risk based capital requirements and affecting small business.
4.   State Fiscal Effect:
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues					⍽ Increase Costs ⍽ Yes X No   May be possible to absorb       within agency's budget. ⍽ Decrease Costs
5.   Fund Sources Affected: ⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S						6.   Affected Ch. 20, Stats. Appropriations: None
7.   Local Government Fiscal Effect:
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Revenues ⍽ Decrease Revenues			⍽ Increase Costs ⍽ Decrease Costs
8.   Local Government Units Affected: ⍽ Towns⍽ Villages⍽ Cities ⍽ Counties ⍽ School Districts ⍽ WTCS Districts ⍽ Others: None
9.   Private Sector Fiscal Effect (small businesses only):

X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Revenues ⍽ Decrease Revenues ⍽ Yes ⍽ No May have significant     economic impact on a     substantial number of     small businesses		⍽ Increase Costs ⍽ Yes X No     May have significant       economic impact on a       substantial number of       small businesses ⍽ Decrease Costs
10.   Types of Small Businesses Affected:
Domestic health or life insurers or domestic fraternal insurers that meet the definition of a small business.
11.   Fiscal Analysis Summary
12.   Long-Range Fiscal Implications
None
13.   Name - Prepared by Sarah E. Norberg		Telephone Number [phone]		Date 07/02/2013
14.   Name – Analyst Reviewer		Telephone Number		Date
Signature—Secretary or Designee		Telephone Number		Date

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Agency 145 Ch. Ins 51.01 (4) (a) 2.
3. Subject
Risk Based Capital Requirements and affecting small business amendment beginning January 1, 2014.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽SEG   ⍽ SEG-S			None
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		X Specific Businesses/Sectors ⍽ Public Utility Rate Payers X Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
The proposed rule potentially results in an earlier warning that a company is approaching a financially hazardous condition. The proposed rule updates an existing regulation to be consistent with the NAIC model regulation and will also bring Wisconsin's requirements for life insurers into alignment with the requirements for health insurers and property and casualty insurers.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
OCI solicited comments generally through publication requesting comments from the public utilizing the OCI website. Additionally OCI solicited comments from the following businesses, associations representing businesses, local governmental units and individuals: Northwestern Mutual Trilogy Johnson Insurance Thrivent Network Health United HealthCare Group Health Cooperative of Eau Claire Group Health Cooperative of South Central Wisconsin HIRSP Arrowhead Strategies Capital Group of Wisconsin Wisconsin Health Plans Wisconsin Medical Society WPS Insurance Dean Health Plan Unity Health Plan TASC Physicians Plus Insurance Corporation Wisconsin Hospital Association Gundersen Lutheran Wisconsin Dental Association Security Health Plan NAIFA Wisconsin Assurant Health Wisconsin Counties Group Health Trust Blue Cross Blue Shield of Wisconsin Ministry Health Care Humana Aurora Health Care Mayo Health Care WEA Trust Health Partners Mercy Health System WellPoint Arise Health Plan
11. Identify the local governmental units that participated in the development of this EIA.
None beyond solicitation for comments.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
The proposed rule will affect domestic life and health insurers who complete a life annual statement, and domestic fraternal insurers. The impact is expected to be minimal. Non-insurance small businesses are protected by this proposed rule change as the amendment provides an earlier warning that a life insurer might be approaching a financially hazardous condition. There may be an effect on small businesses but any effect would be minimal as very few, if any, insurers meet the definition of a small business.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The proposed rule potentially results in an earlier warning that a company is approaching a financially hazardous condition. The proposed rule updates an existing regulation to be consistent with the NAIC model regulation and will also bring Wisconsin's requirements for life insurers into alignment with the requirements for health insurers and property and casualty insurers. This change makes the application of standards uniform across lines of insurance minimizing disparate treatment of insurers.
14. Long Range Implications of Implementing the Rule
The long-range implications of the rule as proposed are: 1) earlier warning that a company is approaching a financially hazardous condition, 2) consistency in risk based capital requirements for life, health and property and casualty insurers, and 3) consistency with the NAIC model regulation for the purposes of maintaining accreditation for domestic insurers conducting business in other states.
15. Compare With Approaches Being Used by Federal Government
OCI is unaware of any existing or proposed federal regulations that are intended to address the activities to be regulated by the proposed rule change.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Illinois and Iowa have laws comparable to Wisconsin's existing rule (215 ILCS 5/35A-15 (a) (1) (B) (2013) and IAC s. 521E.3 1. a. (2) (2013)). Michigan adopts the NAIC Model Law by reference (MCLS s. 50.1204a (2013)). Effective December 31, 2013, Minnesota will have a requirement comparable to Wisconsin's proposed rule (Minn. Stat. s. 60A.62 Subd. 1 (1) (ii) (2013)).
17. Contact Name				18. Contact Phone Number
Louie Cornelius				608-264-8113

This document can be made available in alternate formats to individuals with disabilities upon request.

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

Non-insurance small businesses are protected by this proposed rule change as the amendment provides an earlier warning that a life insurer might be approaching a financially hazardous condition. There may be an effect on small businesses but any effect would be minimal as very few, if any, insurers meet the definition of a small business.

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

Section 227.114, Wis. Stats., defines a “small business" as “a business entity, including its affiliates, which is independently owned and operated and not dominant in its field, and which employs 25 or fewer full-time employees or which has gross annual sales of less than $5,000,000." OCI reviewed premium revenue for domestic life insurers and fraternals. Based on either too much revenue or the ownership structure, it appears that none of Wisconsin's insurers qualify as small businesses.

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ Less Stringent Compliance or Reporting Requirements ⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting ⍽ Consolidation or Simplification of Reporting Requirements ⍽ Establishment of performance standards in lieu of Design or Operational Standards ⍽ Exemption of Small Businesses from some or all requirements ⍽ Other, describe: N/A. Any effect of the proposed rule on small businesses will be minimal. The proposed rule nominally increases the risk based capital requirement and should not change any charging structures.

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

N/A. Any effect of the proposed rule on small businesses will be minimal.

5. Describe the Rule's Enforcement Provisions

The proposed rule nominally increases the risk based capital requirement for domestic life and health insurers who complete a life statement and domestic fraternal insurers. Failure to comply with the risk based capital requirement may be enforced by the Commissioner pursuant to ss. 601.41(4) and 601.64, Wis. Stats.

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No

Notice of Hearing

Safety and Professional Services

Safety, Buildings, and Environment — Plumbing,
Chs. SPS 381-387

CR 13-062

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Safety and Professional Services in ss. 145.13 and 227.11 (2), Stats., and interpreting s. 145.02 (2), Stats., the Department of Safety and Professional Services will hold a public hearing at the time and place indicated below to consider an order to renumber and amend s. SPS 381.01 (141) as s. SPS 381.01 (141) (a) to (c); amend ss. SPS 381.20 Table 381.20-11 (partial) line 6., 384.20 (2) (b) (Note), 384.40 (4) (intro.), and 384.40 (8) (a) and (d); and create ss. SPS 381.01 (141) (c) (Note), 381.20 Table 381.20-11 (partial) line 7., relating to U.S. EPA lead reduction rule, Safe Drinking Water Act amendments of 2011.

Date:   August 28, 2013
Time:   1:00 p.m.
Location:   1400 East Washington Avenue*
  Room 121C
  Madison, Wisconsin
  *Enter at North Dickinson Street

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and argument in writing as well. Facts, opinions, and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708-8935. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Place Where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail]. Comments must be received on or before Wednesday, August 28, 2013 at 1:00 p.m. to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708-8935, by email at [e-mail] or on our website at http://dsps.wi.gov/Default.aspx?Page=44e541e8-abdd-49da-8fde-046713617e9e.

Analysis Prepared by the Department of Safety and Professional Services

Statutes interpreted

Section 145.02 (2), Stats.

Statutory authority

Sections 145.13 and 227.11 (2), Stats.

Explanation of agency authority

Section 227.11 (2), Stats.: “Rule-making authority is expressly conferred as follows: (a) Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation."

Section 145.02 (2), Stats.: “The department shall have general supervision of all such plumbing and shall after public hearing prescribe and publish and enforce reasonable standards therefore which shall be uniform and of statewide concern so far as practicable. …"

Section 145.13, Stats.: “Adoption of plumbing code. The state plumbing code and amendments to that code as adopted by the department have the effect of law in the form of standards statewide in application and shall apply to all types of buildings, private or public, rural or urban, including buildings owned by the state or any political subdivision thereof. The state plumbing code shall comply with ch. 160 (Wisc. Stats.). All plumbing installations shall so far as practicable be made to conform to such code."

Related statute or rule

Chs. SPS 381 to 387 and SPS 391.

Plain language analysis

SECTION 1. This section mirrors the three specific definitions of lead-free in the SWDA, specifically relating to solders and flux, fixtures and components, and calculation of weighted average.

SECTION 2. This section creates a Note, which provides additional resources for calculating weighted average.

SECTIONS 3., 4. and 5. These two sections are revisions to tables listing the adoption of NSF standards reflecting the SWDA provisions. The Note reflects the more recent NSF standard adopted.

SECTIONS 6. and 7. The text of these sections is amended to reflect the use of the updated standards.

Summary of, and comparison with, existing or proposed federal regulation

The U.S. Safe Drinking Water Act amendments of 2011 [SDWA, 42 USC 300g-6] becomes effective January 4, 2014, in which water service piping, piping materials and fixtures must be “lead-free". This Act updates the definition for “lead-free" and adopts by reference two national standards, ANSI/NSF-61 and ANSI/NSF 372 reflecting the revisions to the SDWA. Most importantly, this Act provided a 3-year enactment period for manufacturers, suppliers and users to become educated and comply with the rule revisions and allow for the use of new materials meeting the standard to be ready for sale by the effective date.

Comparison with rules in adjacent states

An Internet-based search of the four adjoining states revealed the following:

Illinois: The Illinois public health code was searched for conformity to the SDWA revisions regarding EPA lead reduction rule; the definition of lead-free has not changed nor has the state adopted the most recent edition of the NSF 61 standard, drinking water system components. No pending legislation was found. [Title 77: public health code, chapter I, subchapter r, part 890 Illinois Plumbing Code]

Iowa: The Iowa state plumbing code has adopted the UPC — Uniform Plumbing Code, 2009 edition [Ch. 25, State Plumbing Code]. The Internet-based search did not find any changes or proposed changes, to date, reflecting the definition of lead-free, and the calculation of lead-free in materials and fixtures, or the adoption of the most recent edition of the NSF 61 standard, drinking water system components.

Michigan: In the Michigan state plumbing code, 605.3 water service pipe, water service pipe must conform to NSF 61 standard, although such an edition does not, to date, reflect the EPA lead-free definition or the calculation of lead-free in piping materials and fixtures based in sec. 1417 of the SDWA. No pending legislation or proposed rule revisions were found on this issue. [Part 7. Plumbing code, r 408.30701 applicable code. Rule 701].

Minnesota: The Minnesota plumbing code, updated Oct. 31, 2012, adopts NSF 61 standard, but an edition prior to the lead-free definition and calculation of lead reduction in the recent revisions to sec. 1417 of the SDWA. No pending legislation or proposed rule revisions were found on this issue. [Chapters 4715 and 4716].

Summary of factual data and analytical methodologies

No factual data or analytical methods were used. The proposed revisions reflect only U.S. EPA 2011 amendments to the SDWA, which is expected to be enforced at the federal level.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis

This rule-making project will not impose any additional impact on small business above or beyond what is required by the federal government.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Effect on Small Business

These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department's Regulatory Review Coordinator may be contacted by email at [e-mail], or by calling [phone].

Agency Contact Person

Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, Wisconsin 53708-8935; telephone [phone]; email at [e-mail].

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chs. SPS 381 to 384, State Plumbing Code
3. Subject
EPA Lead Reduction Rule, US EPA Safe Drinking Water Act (SDWA) of 2011
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			s. 20.165 (2) (j)
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
No policy is being addressed through this rule revision. The purpose of the rule is to update definition of “lead-free" and incorporate by reference national standards consistent with US EPA Safe Drinking Water Act (SDWA) revisions of January 2011, which restricts permissible levels of lead in drinking water components and provides manufacturers and distributors a protocol to assure compliance.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Local water purveyors, product manufacturers and distributors, plumbing designers and inspectors.
11. Identify the local governmental units that participated in the development of this EIA.
None known.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
This federal rule was enacted in January 2011 with a three-year enactment date; manufacturers of pipes and pipe fittings and fixtures sold nation-wide have been noticed that covered products will be required to meet this rule.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Pipes and pipe fittings and fixtures sold in Wisconsin will meet the requirements of s. 1417 (d) (2) of the SDWA of 2011, thereby reducing the leaching of lead from various materials used in water service into the drinking water.
14. Long Range Implications of Implementing the Rule
These products are intended to restrict permissible levels of lead in drinking water.
15. Compare With Approaches Being Used by Federal Government
This rule revision is in response to a federal rule, revisions to the SDWA of 2011.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
An Internet-based search found no pending legislation for the four adjacent states: Illinois, Iowa, Michigan and Minnesota.
17. Contact Name				18. Contact Phone Number
Jean MacCubbin				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Safety and Professional Services —
Examining Board of Architects, Landscape Architects, Professional Engineers, Designers and Land Surveyors

CR 13-064

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Examining Board of Architects, Landscape Architects, Professional Engineers, Designers and Land Surveyors in ss.15.08 (5) (b), 227.11 (2) (a), and 443.015, Wis. Stats., and interpreting s. 443.015, Wis. Stats., the Examining Board of Architects, Landscape Architects, Professional Engineers, Designers and Land Surveyors will hold a public hearing at the time and place indicated below to consider an order to amend ss. A-E 13.08 (4) and 13.09, relating to comity renewal applicants.

Hearing Information

Date:   August 29, 2013
Time:   10:00 a.m.
Location:   1400 East Washington Avenue
  Room 121A
  Madison, Wisconsin

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing date to be included in the record of rule-making proceedings.

Place Where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Shawn Leatherwood, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail]. Comments must be received on or before August 29, 2013 to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Shawn Leatherwood, Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, by email at [e-mail] or on our website at http://dsps.wi.gov/Default.aspx?Page=44e541e8-abdd-49da-8fde-046713617e9e.

Analysis prepared by the Department of Safety and Professional Services

Statutes interpreted

Section 443.015, Stats.

Statutory authority

Sections 15.08 (5) (b), 227.11 (2) (a), 443.015, Stats.

Explanation of agency authority

Examining boards are generally empowered by the legislature pursuant to ss. 15.08 (5) (b), and 227.11 (2) (a), to promulgate rules that govern their profession. The Examining Board of Architects, Landscape Architects, Professional Engineers, Designers and Land Surveyors have been specifically empowered by s. 443.015, Stats., to promulgate rules regarding continuing education requirements for renewal of a credential. Therefore, the Examining Board of Architects, Landscape Architects, Professional Engineers, Designers and Land Surveyors is authorized both generally and specifically to promulgate these proposed rules.

Related statute or rule

Wis. Admin. Code ss. A-E 13.03 (1) and A-E 13.09.

Plain language analysis

The proposed rule seeks to revise ch. A-E 13 to insure comity applicants are treated the same as newly registered engineers. Comity applicants are applicants from another state who apply for registration to practice professional engineering in Wisconsin. As of now, the rule requires comity applicants to compete 30 professional development hours of qualifying continuing education during the first two years prior to licensure while regularly in-state applicants are not required to do so. The proposed rule will also address retired engineers. Retired engineers seeking a waiver from the continuing education requirement are eligible for the waiver if they have not performed any engineering services nor received remuneration for services rendered.

Summary of, and comparison with, existing or proposed federal regulation

None.

Comparison with rules in adjacent states

Illinois: Illinois grants licensure by endorsement for applicants who are licensed in other states. 225 ILCS 325/19. There are no specific professional development hours required for endorsement applicants. Illinois does not grant a waiver for retired professional engineers.

Iowa: Iowa grants licensure by comity. 193C IAC 4.2 (542B). Comity applicants are judged on the applicants' record of education, references, experiences and completion of exams. 193C IAC 4.2 (2). The administrative rules are silent on whether comity applicants are required to fulfill their renewal by way of continuing education requirements or professional development hour requirements.

Waivers may be granted by written request. Hardship or extenuating circumstances are considered before granting a waiver. There are no specific waiver requirements for retired engineers.193C IAC 7.7 (542B, 272C).

Michigan: Michigan grants licensure by reciprocity for out-of-state applicants. Mich. Admin. Code R339.16025. The statutes and administrative rules are silent on whether reciprocity applicants are required to fulfill their renewal by way of continuing education requirements or professional development hour requirements.

Minnesota: Minnesota grants licensure by comity. Minn. R. 1800.0800. Comity applicants that are licensed or certified in another state, may meet continuing education requirements, without completing the entire renewal form, if the other state of which the comity applicant is coming from is listed by the Minnesota board as having continuing education requirements acceptable to the Minnesota board and the license or certificate holder, “certifies in the appropriate section [on the form] that all continuing education and licensing or certification requirements for that state, province, or district have been met." Minn. Stat. § 326.107 Subd. 5.

Summary of factual data and analytical methodologies

Drafting of these proposed rules was initiated by the Engineering Section of the Examining Board of Architects, Landscape Architects, Professional Engineers, Designers and Land Surveyors as a result of a review of the current rules. No other factual data or analytical methodologies were used in drafting these proposed rules.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis

These proposed rules do not have an economic impact on small businesses as defined in s. 227.114 (1), Stats. The Department's Regulatory Review Coordinator may be contacted by email at [e-mail], or by calling [phone].

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis are attached.

Agency Contact Person

Shawn Leatherwood, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, Wisconsin 53708; telephone [phone]; email at [e-mail].

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
ss. A-E 13.08 (4) and 13.09
3. Subject
Comity
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
The proposed rule seeks to amend s. A-E 13.09 to insure out-of-state comity applicants are treated the same as in-state renewal applicants when applying for renewal of credentials. Currently, in-state first time renewal applicants are not required to complete the 30 PDH hours for continuing education during their first renewal. The proposed rule will alleviate comity applicants from fulfilling the 30 PDH continuing education hours during their first renewal period as well. The proposed rule will also address retired engineers. Retired engineers seeking a waiver from the continuing education requirements are eligible for the waiver if they are retired from the active practice of engineering and have not received any remuneration for services rendered.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
The rule was posted on the Department of Safety and Professional Service's website for 14 days in order to solicit comments from the public regarding the rule. No comments were received from the public regarding the rule.
11. Identify the local governmental units that participated in the development of this EIA.
No local governmental units participated in the development of this EIA.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
The Department anticipates that his proposed will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units or the state's economy as a whole.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Applicants applying by comity will be relieved from the time and expense of obtaining the 30 PDHs within their first biennium.
14. Long Range Implications of Implementing the Rule
This proposed rule will result in consistency in the treatment of comity applicants and in-state renewal applicants.
15. Compare With Approaches Being Used by Federal Government
N/A
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Illinois: Illinois grants licensure by endorsement for applicants who are licensed in other states. 225 ILCS 325/19. There are no specific professional development hours required for endorsement applicants. Illinois does not grant a waiver for retired professional engineers. Iowa: Iowa grants licensure by comity. 193C IAC 4.2 (542B). Comity applicants are judged on the applicants' record of education, references, experiences and completion of exams. 193C IAC 4.2 (2). The administrative rules are silent on whether comity applicants are required to fulfill their renewal by way of continuing education requirements or professional development hour requirements. Waivers may be granted by written request. Hardship or extenuating circumstances are considered before granting a waiver. There are no specific waiver requirements for retired engineers.193C IAC 7.7 (542B, 272C). Michigan: Michigan grants licensure by reciprocity for out-of-state applicants. Mich. Admin. Code R339.16025. The statutes and administrative rules are silent on whether reciprocity applicants are required to fulfill their renewal by way of continuing education requirements or professional development hour requirements. There are no specific provisions regarding granting waivers for retired engineers. Minnesota: Minnesota grants licensure by comity. Minn. R. 1800.0800. Comity applicants that are licensed or certified in another state, may meet continuing education requirements, without completing the entire renewal form, if the other state of which the comity applicant is coming from is listed by the Minnesota board as having continuing education requirements acceptable to the Minnesota board and the license or certificate holder, “certifies in the appropriate section [on the form] that all continuing education and licensing or certification requirements for that state, province, or district have been met." Minn. Stat. § 326.107 Subd. 5. There are no specific provisions regarding granting waivers for retired engineers.
17. Contact Name				18. Contact Phone Number

This document can be made available in alternate formats to individuals with disabilities upon request.