Summary of factual data and analytical methodologies
The data and methodology for developing these proposed rules were derived from and consisted of (1) incorporating the criteria in
2007 Wisconsin Act 20; (2) incorporating applicable best practices the Department has developed in administering similar programs for economic development, business development, and tax-credit verification; (3) soliciting and utilizing input from the Department of Revenue and the Department of Agriculture, Trade and Consumer Protection, and from representatives of the stakeholders who are expected to participate in this program; and (4) reviewing Internet-based sources of related federal, state, and private-sector information.
Analysis and supporting documents used to determine effect on small business
The primary document that was used to determine the effect of the proposed rules on small business was
2007 Wisconsin Act 20. This Act requires the Department to implement a program to certify taxpayers as eligible for the dairy manufacturing facility investment credit under sections
71.07 (3p),
71.28 (3p), and
71.47 (3p) of the Statutes, and requires the Department to promulgate rules for administering the program. The proposed rules apply their private-sector requirements only to dairy manufacturing facilities for which a corresponding tax credit is desired.
Initial Regulatory Flexibility Analysis
Summary
The proposed rules are not expected to impose significant costs or other impacts on small businesses because the rules address submittal of documentation only by applicants who choose to pursue tax credits for dairy manufacturing modernization or expansion activities.
Types of small businesses that will be affected by the rules.
Owners and operators of dairy manufacturing facilities who chose to apply for the tax credits in ss.
71.07 (3p),
71.28 (3p), and
71.47 (3p) of the Statutes, for investing in those facilities.
Reporting, bookkeeping and other procedures required for compliance with the rules.
Applicants for becoming certified as being eligible for the tax credits must submit an application that demonstrates compliance with the criteria specified under the rules.
Types of professional skills necessary for compliance with the rules.
No new professional skills would be needed for compliance with these rules.
Rules have a significant economic impact on small businesses?
No.
Environmental Analysis
NOTICE IS HEREBY GIVEN that the Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Fiscal Estimate
Summary
Although the rules will newly result in review of documentation relating to certifying applicants as eligible to then claim allocated tax credits for investments in dairy manufacturing facilities, the number of these reviews and allocations is expected to be too small to result in significant changes in the Department's costs for administering its business development programs. Therefore, the proposed rules are not expected to have any significant fiscal effect on the Department.
The proposed rules are not expected to impose any significant costs on the private sector, because the rules address only voluntary submittal of documentation relating to tax credits for investments in dairy manufacturing facilities.
State fiscal effect
None
Local government fiscal effect
None
Long-range fiscal implications
None known
Notice of Hearing
Employee Trust Funds
A public hearing will be held to consider a proposed rule revising chs.
ETF 10 and
50, relating to termination of employment and administrative leave of absence.
Hearing Information
Date and Time:
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Location:
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May 22, 2008
1:00 p.m.
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Dept. of Employee Trust Funds
Conference Room GB
801 West Badger Road
Madison, WI
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Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building.
Agency Contact Person
Please direct any questions about the proposed rule to David Nispel, Deputy Chief Counsel, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707. The email address:
david.nispel@etf.state.wi.us. The telephone number is: (608) 264-6936.
Submission of Written Comments
Written comments on the proposed rule may be submitted to David Nispel, deputy chief counsel, department of employee trust funds, 801 W. Badger Road, P. O. Box 7931, Madison, WI 53707. Written comments must be received at the Department Of Employee Trust Funds no later than 4:30 p.m. on Friday, May 23, 2008.
Copies of Proposed Rule
Copies of the proposed rule are available without cost from the Office of the Secretary, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707-7931. The telephone number is: (608) 266-1071.
Analysis Prepared by the Department of Employee Trust Funds
Statute interpreted
Section
40.63, Wis. Stats.
Statutory authority
Explanation of agency authority
By statute, the DETF Secretary is expressly authorized, with appropriate board approval, to promulgate rules required for the efficient administration of any benefit plan established in ch.
40 of the Wisconsin statutes. Also, each state 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.
Related statute or rule
Ch.
ETF 10, Wis. Admin. Code, concerns the administration of the Public Employee Trust Fund and Ch.
ETF 50 concerns disability benefits provided in accordance with the trust fund. Section
40.63, Wis. Stats. concerns disability annuities from the Wisconsin retirement system. There are no other related administrative rules or statutes.
Plain language analysis
The purpose of this rule is to enable participants to continue to receive private benefits offered by their employer, such as health insurance, while they are receiving disability benefits under s.
40.63, Stats.
Comparison with federal regulations
The only federal regulations that may be affected by this proposed rule are provisions of the Internal Revenue Code regulating qualified pension plans. The Wisconsin Retirement System is required to be maintained as a qualified plan by s.
40.015, Stats. As a general rule, pension plans are supposed to provide benefits at retirement. However, federal regulations state that a pension plan may provide for the payment of a pension due to disability. The Wisconsin Retirement System provides for disability annuities under s.
40.63, Stats.
Comparison with rules in adjacent states
The department did not locate any comparable rule or statute in any adjacent states.
Summary of factual data and analytical methodologies
Currently, the department interprets s.
40.63, Stats. to permit a disabled employee, who is on a leave of absence and not expected to return to service, to apply for a disability annuity benefit and to receive such benefits if the employee's application is approved. This practice followed an internal review of the department's policies and the pertinent statutes and administrative rules for administering the s.
40.63 disability benefit program.
This proposed rule addresses the status of disability annuitants with regard to the Wisconsin Retirement System and other fringe benefits under ch.
40, Stats. For example, if a disabled employee is deemed to have terminated employment for all ch.
40 purposes, the effect on that person's health insurance and premiums would vary depending on whether the employer participated in the group insurance board's health insurance under ch.
40 or if the employer offered other health insurance.
Under s.
ETF 50.54 (2) (b), long-term disability insurance benefits, which replaced disability annuity benefits for employees not continuously employed since before October 16, 1992, already are available for employees on a leave of absence. This proposed rule will conform the eligibility criteria regarding termination of employment for both disability annuities and long-term disability insurance.
Analysis and supporting documents used to determine effect on small business
The rule does not have an effect on small businesses because private employers and their employees do not participate in, and are not covered by, the Wisconsin Retirement System.
Initial Regulatory Flexibility Analysis
There is no effect on small business.
Fiscal Estimate
The rule codifies current department practice. The rule will have no effect on state funds.
Text of Proposed Rule
SECTION 1. ETF 10.08 (2) (b) 4. is amended to read:
4. Except as provided in ETF 50.30 (4), upon termination of employment the participant is treated consistently with the status of a former employee. This includes, but is not limited to the terminated employee no longer being eligible for benefits available only to active employees. Examples of such benefits may include health insurance, life insurance, income continuation insurance coverage, making deferred compensation or tax sheltered annuity contributions, worker's compensation coverage, internal grievance, promotion or transfer rights, or rights available to active employees under a collective bargaining agreement. This subd. shall not apply to benefits that may be available to the employer's retired employees, such as severance pay, post-retirement insurance coverage and/or employer payment of premiums, or post-retirement benefits or other rights provided through collective bargaining or other retirement agreements. However, agreements made after the termination date for future compensable services to be rendered by the employee would not be precluded under subd. 3.
SECTION 2. ETF 50.30 (4) is created to read:
(4) To be eligible for disability benefits under s.
40.63, Stats., a participant must terminate all participating employment. For disability benefits under s.
40.63, Stats., “termination of employment" means that the participant has ceased to be a participating employee on the termination date that the employer reports to the department for the purpose of all benefits administered under ch.
40, Stats. Such benefits include health insurance coverage and sick leave credit usage, life insurance coverage, income continuation insurance coverage, Wisconsin retirement system coverage and death benefits under s.
40.73 (1) (am) and
(c), and making deferred compensation contributions under s.
40.80, Stats. A termination of employment under this subs. does not preclude a participating employer from placing the participant on an administrative leave of absence as long as the employee is not expected to resume active service.
Proposed Effective Date
This rule shall take effect on the first day of the month commencing after the date of publication in the Wisconsin administrative register as provided by s.
227.22 (2) (intro.), Stats.
Notice of Hearing
Health and Family Services
Management and Technology and Strategic Finance,
Chs.
HFS 1—
NOTICE IS HEREBY GIVEN that pursuant to s.
46.287 Stats., and interpreting s.
46.286 (3) (a) Stats., as revised by
2007 Wisconsin Act 20, the Wisconsin Department of Health and Family Services will hold a public hearing on emergency rules amending ss.
HFS 10.55 (1) and
10.56 (2) and creating ss.
HFS 10.55 (1m) and
10.56 (2m), relating to fair hearings, and continuation of benefits pending the outcome of a grievance, Department review, or fair hearing under the Family Care program at the date, time, and location listed below.
Hearing Information
Date and Time
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Location
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May 12, 2008
1:00 - 2:00 p.m.
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Dept. of Health and Family Services
1 West Wilson Street
Room 518B
Madison, Wisconsin
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The hearing site is fully accessible to people with disabilities. If you are hearing impaired, do not speak English or have circumstances that might make communication at a hearing difficult; you require an interpreter or a non-English large print or taped version of the proposed rules, contact the person at the address or telephone number given below at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Submission of Written Comments
Written comments may be submitted at the public hearing or submitted to the contact person listed below. Comments may also be made using the Wisconsin Administrative Rule Website at
http://adminrules.wisconsin.gov.
The deadline for submitting comments to the Department is 4:30 p.m. on May 18, 2008.
Copies of Proposed Rules
A copy of the full text of the rules and the fiscal estimate can be obtained at no charge from the Wisconsin Administrative Rules Website at http://adminrules. wisconsin.gov or by contacting the person listed below.
Agency Contact Person
Charles Jones
Division of Long Term Care
1 W. Wilson St., Room 518
P.O. Box 7851
Madison, WI 53707-7851
