CR 16-092 Rule Text

STATE OF WISCONSIN

Department of Safety and Professional Services

IN THE MATTER OF RULEMAKING PROCEEDINGS BEFORE THE DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES

PROPOSED ORDER OF THE DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES

ADOPTING RULES

(CLEARINGHOUSE RULE )

PROPOSED ORDER

An order of the department to repeal SPS 305.73 (3) (a) (Note) and amend SPS 305.73 (3) (a) and (4) (a) and (Note), (b) and (Note), and (c) (Note 1), relating to liquefied gas suppliers.

Analysis prepared by the Department of Safety and Professional Services.

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ANALYSIS

Statutes interpreted:

Section 101.16 (3r) and (4), Stats.

Statutory authority:

Sections 101.02 (1) and 101.16 (3g) (a), Stats.

Explanation of agency authority:

Section 101.02 (1), Stats., provides “[t]he department shall adopt reasonable and proper rules and regulations relative to the exercise of its powers and authorities and proper rules to govern its proceedings and to regulate the mode and manner of all investigations and hearings.

Section 101.16 (3g) (a), Stats., as amended effective October 1, 2016, by 2015 Wisconsin Act 327 provides “[n]o retailer may distribute liquefied petroleum gas without holding a license issued by the department. The department, subject to s. 101.02 (20) and (21), shall issue a license to be a retailer upon receiving the fee established under s. 101.19 (1g) (L) or (1m) and upon the retailer's obtaining commercial general liability insurance as required under sub. (3r) (c). The term of the license shall be set by the department, not to exceed 2 years.”

Related statutes or rules:

None.

Plain language analysis:

The proposed rules reflect the provisions of 2015 Wisconsin Act 327, which changes the financial responsibility requirements for retailers of liquefied petroleum gas.

Current rules authorize a person applying for or holding a liquefied gas supplier or liquefied gas supplier – restricted license to have either 1) a surety bond, 2) an irrevocable letter of credit, or 3) commercial general liability insurance as the proof of financial responsibility required under s. 101.16, Stats. The proposed rule amends s. SPS 305.73 to reflect the provisions of 2015 Wisconsin Act 327, which, effective October 1, 2016, eliminates the first 2 options listed above. Under the Act, a person applying for or holding a liquefied gas supplier or liquefied gas supplier – restricted license is required to have commercial general liability insurance.

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

None.

Comparison with rules in adjacent states:

An Internet-based search found the states of Illinois, Iowa, Michigan, and Minnesota do not have rules relating to the licensing of retail liquefied gas suppliers.

Summary of factual data and analytical methodologies:

The proposed rules were developed by reviewing the provisions of 2015 Wisconsin Act 327 in conjunction with the current rules relating to liquefied gas suppliers under s. SPS 305.73.

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

The proposed rules were posted for a period of 14 days to solicit public comment on economic impact, including how the proposed rules may affect businesses, local government units, and individuals. No comments were received.

Fiscal Estimate and Economic Impact Analysis:

The Fiscal Estimate and Economic Impact Analysis document 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:

Dale Kleven, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708; telephone [phone]; email at [e-mail].

Place where comments are to be submitted and deadline for submission:

Comments may be submitted to Dale Kleven, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8935, or by email to [e-mail]. Comments must be received at or before the public hearing to be held at 8:00 a.m. on January 31, 2017, to be included in the record of rule-making proceedings.

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TEXT OF RULE

Section 1.   SPS 305.73 (3) (a) is amended to read:

  SPS 305.73 (3) (a) A person applying for either a liquefied gas supplier or a liquefied gas supplier — restricted license shall, provide proof of financial responsibility as required under s. 101.16 (3r) (c), Stats., obtain commercial general liability insurance as an endorsement to an existing policy or as a separate policy from an insurer, or a risk retention group, that is licensed to transact the business of insurance in this state or that is eligible to provide insurance as a surplus lines insurer in one or more states.

Section 2.   SPS 305.73 (3) (a) (Note) is repealed.