Scope Statements
Administration
Subject
Creates Chapter
Adm 24, relating to debarment, suspension, and ineligibility of Department of Administration contractors.
Objective of the Rule
The purpose of the proposed rule is to set forth the policies and procedures governing debarment and suspension of contractors from state construction contracts involving the Department of Administration.
Policy Analysis
Pursuant to s.
16.85, Stats., the Wisconsin Department of Administration is responsible for the supervision of all engineering, architectural services or construction work performed by, or for, the state in the construction and acquisition of new buildings or improvements and additions to existing buildings. The Department solicits bids from, awards contracts to, and approves subcontracts with, responsible business concerns and individuals as prescribed in Chapters
Adm 20 and
21. The Department proposes creating a rule similar to Trans 504 adopted by the Department of Transportation (DOT) for debarment and suspension of contractors from state construction contracts involving DOT. The department has determined that the proposed rule is in the public interest to protect the government from contractor misconduct.
Statutory Authority
Comparison with Federal Regulations
Subpart 9.4, of Title 48 of the Federal Acquisition Regulations prescribes policies and procedures governing the debarment and suspension of contractors for cause by federal government agencies. These regulations also provide for the listing of contractors debarred, suspended, proposed for debarment and declared ineligible, and sets forth the consequences of this listing.
Entities Affected by the Rule
Prospective bidders responding to the Department's proposals for specific construction projects.
Estimate of Time Needed to Develop the Rule
Approximately 80 hours of department staff time will be needed to promulgate the rules.
Contact Information
Donna Sorenson, Paralegal
Wisconsin Dept. of Administration
101 E. Wilson Street, Madison, WI 53707-7864
Phone: (608) 266-2887
Financial Institutions — Securities
Subject
Revises Chapters
DFI-Sec 1,
2,
4,
5,
8 and
32, making minor revisions to securities law and franchise law administrative code sections.
Policy Analysis
The purpose of the rule is to bring these sections into conformity with Wisconsin securities statutes which were substantially revised in 2008 with the adoption of the Uniform Securities Act of 2002, as well as reflect current industry and regulatory practices. Matters affected include statutory citations, definitions, securities registration exemptions, prohibited conduct involving investment adviser solicitation activities, electronic filings, appearances and defaults, and amendments to franchise registration statements.
Statutory Authority
Comparison with Federal Regulations
Section 203(e) and (f), and 206(4)-3 of the Investment Advisers Act of 1940.
Entities Affected by the Rule
Issuers of securities exempt from registration, securities broker-dealers, investment advisers and entities soliciting persons to be clients of investment advisers, federal and state securities regulatory authorities, securities self-regulatory organizations, and franchisors amending their franchise registrations.
Estimate of Time Needed to Develop the Rule
100 hours.
Contact Information
Mark Schlei, Deputy General Counsel
Department of Financial Institutions
Office of the Secretary
P.O. Box 8861, Madison, WI 53708-8861
Phone: (608) 267-1705
Insurance
Subject
Revises section
Ins 51.01, relating to the risk-based capital of health insurers, property and casualty insurers, and fraternal insurers.
Objectives of the Rule
The objective of the proposed rule is to improve the monitoring of insurer solvency by modifying the risk-based capital (RBC) requirements so that the definition of a company action level event includes a trend test for property and casualty insurers, and a trend test for health insurers, and the removal of the exemption for fraternal insurers.
Policy Analysis
Currently ch.
Ins 51 requires property and casualty insurers and health insurers to calculate their authorized control level RBC in accordance with the National Association of Insurance Commissioners (NAIC) instructions. The NAIC has amended the instructions for property and casualty insurers and for health insurers to include a trend test. Currently ch.
Ins 51 does not include the trend tests in the definition of a company action level event, an event in which a company is required to submit a corrective plan. Currently a company action level event occurs if a health insurer's or a property and casualty insurer's adjusted capital is less than 2.0 times the authorized control level RBC, and more than 1.5 times the authorized control level RBC. Under the proposed rule a company action level event would also occur if the insurer's adjusted capital is between 2.0 and 3.0 times the authorized control level RBC and the insurer triggers the negative trend test determined in accordance with the NAIC instructions.
Currently, fraternal insurers are exempt from the RBC filing requirements, unless the commissioner finds that inclusion of fraternal insurers would improve solvency monitoring. The proposed rule would remove the general exemption for fraternal insurers and fraternal insurers would be subject to the same RBC reporting requirements as life insurers.
Statutory Authority
Comparison with Federal Regulations
There are no federal regulations which address the subject matter of the proposed rule.
Entities Affected by the Rule
The proposed rule affects health insurers and property and casualty insurers that are subject to risk-based capital calculation, and affects fraternal insurers by making them subject to risk-based capital reporting requirements.
Estimate of Time Needed to Develop the Rule
