Revenue
Subject:
Ch. WGC 63 - Relating to the Wisconsin Lottery and to the contracting of not-for-profit retailers who sell break-open pull-tab lottery products.
Description of policy issues:
Objectives of the rule:
The objective of this proposed rule is to update the permanent rule authority of the Wisconsin Lottery where not-for-profit retailers are concerned. Current administrative rules are over 9 years old, and contain limitations that are no longer consistent with the feedback expressed by some not-for-profit retailers. The feedback focused on business relationship and customer service they desire from the Lottery.
As indicated in the Prize Payout Report submitted to the Joint Finance Committee in March 2000, the Lottery is reviewing its overall business relationship with not-for-profit retailers. This review covers both the prize payout level offered for pull-tab tickets as well as the administrative and contractual activities that the Lottery performs. The proposed changes are similar in nature to those performed by Regulation & Licensing in November 1990, related to bingo and raffle gaming. In that year, the business relationship with not-for-profits was improved by the updating of administrative rules and contract language for bingo and raffle gaming. The Lottery is proposing changes that are similar to those implemented by Regulation & Licensing.
Policy analysis:
Existing policies are as set forth in the rules. The major aspect of this proposal is a change in the basis of the contractual relationship between the Lottery and not-for-profit retailers. Currently contracts are based on a limited number of events as granted by the Lottery administrator, consistent with administrative rules. This proposal changes the basis of the relationship to that of contracts awarded based on a pre-approved list of event locations as granted by the administrator, consistent with proposed rules changes. Additional proposed changes include a definition necessary to enforce this new contractual language. These changes are necessary to allow for a significant reduction in paper processing by the Lottery, to allow not-for-profit retailers to develop improved activity planning, and to deter retailers from finding creative ways of circumventing the current administrative code regarding the number of events per year that a single retailer can conduct.
Additionally, this scope proposes language that allows retailers to return unused pull-tab tickets under circumstances to be specified in administrative rule. Currently, the Lottery has little customer service ability to accept returns of sellable pull-tab tickets. The new return policy would allow returns only for defective tickets, incorrectly filled orders, or accidental over-ordering. In the case of incorrectly filled orders or over-ordering the original shipping package must be intact so that ticket security has not been compromised. In the case of defective tickets, standard Lottery security and validation procedures for other Lottery products will be applied to pull-tab ticket returns.
If the rules are not changed, they will be inconsistent with the feedback the Lottery has received from not-for-profit organizations concerning needed improvements in Lottery customer service and contract relations. Additionally, the increased sales expected from future prize payout increases as reported to the JFC will likely be lessened if these proposed changes are not completed.
Statutory authority:
Sections 565.10 and 565.12, Stats.
Estimate of staff time required:
The Department estimates it will take approximately 80 hours to develop this rule order.
Transportation
Subject:
Ch. Trans 4 - Relating to establishing cost-efficiency standards for all transit systems participating in the state aid program.
Description of policy issues:
Description of the objective of the rule:
Chapter Trans 4 establishes the Department's administrative interpretation of s. 85.20, Stats., and prescribes the administrative policies and procedures for implementing the State Urban Mass Transit Operating Assistance Program. The purpose of this rule making is to establish cost-efficiency standards for all transit systems participating in the state aid program, as required by 1999 Wis. Act 9.
Description of existing policies relevant to the rule and of new policies proposed to be included in the rule and an analysis of policy alternatives:
Under current policy, there are several cost-efficiency measures which have been created to assess transit system performance. These were formulated as an outgrowth of the Transit Advisory Council in 1997. 1999 Wis. Act 9 prohibits the Department from entering into contracts to distribute state aid until cost-efficiency standards have been incorporated into an administrative rule.
Statutory authority for the rule:
Sections 85.16 (1), 85.20 and 227.11 (2), Stats.
Estimate of the amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
200 person hours.
Submittal of Rules to Legislative Council Clearinghouse
Notice of Submittal of Proposed Rules to
Wisconsin Legislative Council Rules Clearinghouse
Please check the Bulletin of Proceedings for further information on a particular rule.
Employe Trust Funds
Rule Submittal Date
Notice is hereby given that on July 19, 2000 the Department of Employe Trust Funds submitted to the Wisconsin Legislative Council Rules Clearinghouse a proposed order affecting s. ETF 10.10.
Analysis
The subject matter of the proposed rule relates to election procedures for the Employe Trust Funds Board.
Agency Procedure for Promulgation
A public hearing will not be scheduled pursuant to s. 227.16 (2) (b), Stats.
Contact Information
If you have any questions, you may contact:
Pam Henning
Director of Legislation and Planning
Dept. of Employe Trust Funds
Telephone: (608) 267-2929
N o t i c e S e c t i o n
Notice of Hearing
Financial Institutions--Securities
Notice is hereby given that pursuant to ss. 551.63 (1), (2) and (3), 551.23 (8) (f) and (g) and (18), 551.26 (1), 551.32 (7), 551.33 (1), (2) and (6), and 551.53 (1) (b), Stats., the Division of Securities of the Department of Financial Institutions will hold a public hearing at the time and place indicated below to consider the adoption, amendment and repeal of rules in connection with its annual review of the administrative rules of the Division of Securities relating to the operation of ch. 551, Stats., the Wisconsin Uniform Securities Law.
Hearing Information
The public hearing will be held:
Date & Time Location
September 25, 2000 Conference Room
Monday 4th Floor
Beginning at 345 West Washington Ave.
10:30 a.m. MADISON, WI
Written Comments
Written comments in lieu of public hearing testimony may be submitted which must be received no later than the hearing date and should be addressed to the Administrator of the Division of Securities, 345 West Washington Avenue, P.O. Box 1768, Madison WI 53701.
Analysis Prepared by the Division of Securities
Statutory authority: ss. 551.63 (1), (2) and (3), 551.23 (8) (f) and (g) and (18), 551.26 (1), 551.32 (7), 551.33 (1), (2) and (6), and 551.53 (1) (b)
Statutes interpreted: ss. 551.23 (1), (8) (f) and (g) and (18), 551.32 (7), 551.33 (1), (2) and (6), and 551.53 (1) (b)
The rule-making procedures under ch. 227, Stats., are being implemented for the purpose of effectuating the Division's annual review of the Rules of the Division of Securities. The Division's annual rule revision process is conducted for the following purposes:
1) Developing new securities registration exemptions and making modifications to several existing securities registration exemptions to reflect new legal or interpretive issues under the federal and state securities laws; and
2) Adopting new rules, or amending existing rules, relating to the securities broker-dealer, agent, investment adviser, and investment adviser representative licensing procedures, record-keeping requirements and rules of conduct provisions, to effectively regulate new securities licensing developments that have occurred in the securities industry and marketplace that require regulatory treatment.
Proposed revisions are being made in a total of over 15 different sections. A summary of the subject matter and nature of the more significant rule revisions follows:
1)
Revising the “isolated nonissuer transaction" exempt transaction rule in s. DFI-Sec 2.02 (1) (intro.) to clarify that only the specific examples set forth in sub. (1) (a) and (b) qualify for purposes of the rule;
2) Renumbering certain of the rules under the so-called “institutional investor" exemption in s. 551.23 (8), Stats., to clarify that the rules in s. DFI-Sec 2.02 (8) (a) to (f) relate solely to the statute exemptions in s. 552.23 (8) (a) to (f), Stats., and that the specific “individual accredited investor" exemption rule s. DFI-Sec 2.02 (4) (g) relates solely to its corresponding statute registration exemption in s. 551.23 (8) (g), Stats.
3) Adding to the combined 10 offeree/existing securityholder registration exemption in s. DFI-Sec 2.02 (9) (c) equivalent language to that contained in the component exemption in s. 551.23 (11), Stats., to provide that offers to institutional investors listed in s. 551.23 (8), Stats., are not counted for purposes of the rule;
4) Adding to the advertising filing exclusion in s. DFI-Sec 7.02 (1) (b) materials used in connection with use of the registration exemption in s. DFI-Sec 2.02 (9) (m) for an employee benefit plan that qualifies for (automatic) use of the federal securities exemption under Rule 701 of the Securities Act of 1933;
5) Amending the broker-dealer and investment adviser record-keeping rules in ss. DFI-Sec 4.03 and 5.03 (which relate to retention by licensees of a separate file of customer complaints), to also require retention of investigative inquiries directed to the licensee by any securities regulatory authority or any law enforcement authority regarding the licensee 's securities business;
6) Moving the existing investment adviser record-keeping rule in s. DFI-Sec 5.03 (1) (o) [requiring creation and retention of records relating to customers' financial condition and investment objectives] to be under sub. (3) to thereby make the requirement applicable only for those advisers who provide regular and ongoing supervision and management of customer accounts, and/or have discretionary authority;
7) Creating both a new investment adviser record-keeping rule, as well as a rule of conduct provision, relating to a licensee's compliance with the federal “brochure rule " [which is incorporated by reference in s. DFI-Sec 5.05 (8)] to do the following:
(i) Provide that advisers need to maintain a record of the initial, as well as the required annual, provision of the brochure to customers; and to
(ii) Specify the time frames within which the brochure must be provided to customers.
