Scope statements
Commerce
Subject
Objective of the Rule. The objectives of the rule is to incorporate in ch.
Comm 113 recent changes to the Internal Revenue Code which increase state volume cap limits on tax-exempt private activity bonds.
Policy analysis
The Division of Community Development within the Department of Commerce is responsible for administering the allocation of volume cap on tax-exempt private activity bonds. The year 2000 limit in the Internal Revenue Code was $50 per resident of the state. For the year 2001 the limit has been raised to $62.50; for the year 2002, the limit will be $75.00; and thereafter, the limit will be indexed to inflation. The rule will outline the distribution of the volume cap between the State Building Commission, the Wisconsin Housing and Economic Development Authority, and the Department of Commerce. The rule will also provide an allocation process that will allow the Department of Commerce to be more responsive to the needs of businesses as changes occur in the state's economy.
Statutory Authority
Staff Time Required
The department estimates that it will take approximately 60 hours to develop this rule. This time includes drafting the rule and processing the rule through public hearings and legislative review. The department will assign existing staff to develop the rule. There are no other resources necessary to develop the rule.
Commerce
Subject
Objective of the Rule. The objectives of this rule revision, incorporated into one or more rule packages, are to:
a) Recognize diversified experience and/or training qualifications for individuals applying to obtain for the first time commercial building inspector certifications in light of the proposed utilization of the International Code Council suite of codes as the commercial building code and to reflect the distinct activities of plan review and field inspection.
b) Establish alternative schemes and certifications that reflect the various options of administering and enforcing the commercial building code and the fire prevention code by municipal agents.
Policy analysis
The present commercial building code specifies several options for municipalities to voluntarily become agents of the department with respect to plan review and field inspection activities. Even though the skills and knowledge associated with plan review and field inspection may differ with the activities and responsibilities, the department has only one type of credential to recognize both. The proposed rules would reflect and recognize the option of delegating these activities and responsibilities to different individuals with special skills, knowledge and training along assigned duties.
Statutory Authority
Staff Time Required
it is estimated that these rule revisions relating to credentials will require the resources of staff members from the department as follows:
Administrative time 50 Hours
Code Consultant's time 140 Hours
Program Managers' time 140 Hours
Program Staff time 80 Hours
Total Time 410 Hours
Employee Trust Funds
Subject
In January 2001, the Internal Revenue Service issued proposed regulations under Internal Revenue Code Section 401 (a) (9) that establishes new rules regarding the minimum required distributions (MRD) from a qualified plan. The regulations are primarily designed to simplify the calculation of the MRD and in some instances allow payments to be extended over a longer period of time. These rules may also have implications for certain other types of payment options. The new rules are scheduled to go into effect for the plan year beginning January 1, 2002. Distributions initiated after this date must comply with the new requirements.
Objective of the Rule. The Department will continue its analysis of the provisions of the proposed rule to determine its impact on the current Wisconsin Retirement System (WRS) distribution options as well as the policies and procedures for rollover distributions to other qualified plans and individual retirement accounts (IRAs). The objective of the proposed rule is to ensure all current policies and procedures relating to distributions that impact the calculation of the MRD will conform to the new regulations.
Policy analysis
Preliminary review of the new regulations has identified that an administrative rule is necessary to ensure compliance with federal tax requirements relating to the calculation of minimum required distributions (MRD) and how this impacts certain WRS distribution options. The new rules include a specific schedule that must be used in determining the MRD. As a result of this new table, current WRS distribution options may not be in compliance beginning with distributions initiated in 2002.
Policy alternatives to the proposed rule
The WRS must be administered in compliance with Section 401 (a) for a qualified retirement system. Non compliance with 401 (a) (9) creates plan qualification issues for the WRS and could potentially result in an excise tax penalty to a participant. Therefore, there is no acceptable alternative to this proposed rule making process.
Statutory Authority
Staff Time Required
The department estimates that state employees will spend between 100 and 200 hours developing this rule.
Financial Institutions-Division of Securities
Subject
Annual rule revision process for the Rules of the Division of Securities, Department of Financial Institutions, relating to the Wisconsin Uniform Securities Law.
Description of policy issues
Description of the objective of the rules:
The Division's annual rule revision process is conducted for the following purposes: (1) adopting new rules or amending existing rules, relating to the securities broker-dealer, agent, investment adviser, and investment adviser representative licensing provisions relating to certain limited agent examinations, designated supervisor requirements, and the filing of certain branch office information, to thereby effectively regulate new securities licensing developments that have occurred in the securities industry and marketplace that require regulatory treatment; (2) making modifications to existing federal covered security provisions to be consistent with federal securities law requirements; and (3) providing for electronic filing with the Division of any Consent To Service of Process.
Description of existing relevant policies and new policies proposed to be included in the rule and an analysis of policy alternatives
Existing and new policies contained in the proposed rules include:
1. Adding a new rule subsection under DFI-Sec 4.01 (3) providing for a new, additional type of limited securities agent examination (needed as a result of provisions in the Gramm-Leach-Bliley Act) for bank employees engaged in selling private placement securities offerings.
2. Clarifying the timing of the notification requirement under existing rule DFI-Sec 4.04 (8) (a) and 5.04 (5) (a) for broker-dealers and investment advisers to inform the Division of the opening or change of address of any branch office location in Wisconsin.
3. Repealing both the licensing requirement in DFI-Sec 4.05 (6) that every broker-dealer must appoint a designated supervisor, and the related examination requirement in DFI-Sec 4.01 (5).
4. Adding a new rule subsection under the existing Federal Covered Security rules in DFI-Sec 2.04 (1) to deal with filings seeking extension of the effectiveness period of notice filings previously made by unit investment trusts or closed-end investment companies.
5. Adding a new fee rule under DFI-Sec 7.01 (5) prescribing a $200 fee for filings for extension by entities identified in Item 4. above.
6. Creating a new rule subsection under the Service of Process statute in sec. 551.65, Wis. Stats., to provide for electronic filing of a Consent To Service of Process to thereby facilitate various electronic securities licensing and securities registration filing procedures.
7. Relocating the existing fee rule in DFI-Sec 7.01 (4) [regarding finance company prospectuses] to be a subsection of the registration fee rules in DFI-Sec 7.01 (1).
Statutory authority for the rules
Estimate of the amount of time state employees will spend to develop the rule and other resources necessary to develop the rule
Estimated time to be spent by state employees to develop the rules--25 hours. No other resources are necessary.
