Rule-Making Notices
Notice of Hearing
Employee Trust Funds
NOTICE IS HEREBY GIVEN That The Wisconsin Department of Employee Trust Funds (ETF) proposes an order pursuant to section
227.14, Stats., to repeal section
ETF 10.10 (13); to repeal and recreate sections
ETF 10.10 (3),
(4),
(6),
(7) and
(9); to amend sections
ETF 10.10 (1),
(1m),
(2),
(8),
(10),
(11) and
(12); to renumber and amend sections
ETF 10.10 (15),
(16) and
(17); and create sections
ETF 10.10 (5) and
(16), relating to elections to the Employee Trust Funds and Teachers Retirement Board.
Hearing Information
Date: Monday, March 26, 2012
Time: 3:00 P.M.
Location: Department of Employee Trust Funds
801 West Badger Road
Conference Room GA
Madison, WI 53713
Persons wishing to attend should come to the reception desk located up the stairs and directly to the left (or by elevator) from the main entrance to the building.
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.
Place Where Comments are to be Submitted and Deadline for Submissions
Comments may be submitted to the contact person no later than 4:30pm, Central Standard Time, on Monday, April 2, 2012. The public hearing will be held at 3:00pm on Monday, March 26, 2012 in conference room GA of the Wisconsin Employee Trust Fund building at 801 W. Badger Rd, Madison, WI 53713.
Analysis Prepared by the Department of Employee Trust Funds
Statutes interpreted
Statutory authority
Explanation of agency authority
By statute, the ETF 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.
This rule is not subject to s.
227.135 (2), as affected by
2011 Wis. Act 21. The scope statement for this rule, submitted to the Legislative Reference Bureau on 03/16/2010 and published in
Register No. 651b on 04/01/2010, was sent to the Legislative Reference Bureau prior to June 8, 2011, the effective date of
2011 Wis. Act 21.
Related statute or rule
Plain language analysis
(a)
Clarify statutory authority of the ETF Secretary to hold board elections in any reasonable manner, including by electronic means.
When warranted, holding board elections electronically can promote efficiency and minimize costs. It is clear that the Secretary has authority under s.
40.03 (2) (p), Stats., to choose the means of holding board elections. However, the provisions in the existing administrative rule contemplate only a paper-based board election process. The changes to the rule provide that the Secretary may choose to hold a board election using a paper-based process, electronically by use of the Internet, by a combination of methods or by any other reasonable means.
(b)
Simplify Wis. Admin. Code section
ETF 10.10
Changes have been made to make provisions in Wis. Admin. Code section
ETF 10.10 more understandable and eliminate provisions that create inefficiencies. Some of the clarification in language includes: creation of section headers, re-arranging and renumbering of subsections, additional definitions, and breaking-up sections into subparagraphs.
Summary of, and comparison with, existing or proposed federal regulations
There are no existing or proposed federal regulations relevant to electronic elections for board members of public pension systems.
Comparison with rules in adjacent states
Illinois – The relevant regulations governing board elections to the State Employees' Retirement System of Illinois are found in 80 Ill. Adm. Code 1540.330, Board Elections. The code sets forth procedures for standard paper ballot elections, and does not include provisions for electronic voting.
Iowa – Iowa law establishes the Iowa Benefits Advisory Committee (BAC) under Iowa Code section 97B.8B. Regulations governing the BAC are provided in IAC 495-3.1. State law gives Iowa Public Employees' Retirement System authority to adopt election rules, however the regulations do not provide for election procedures. There are likewise no regulations governing or authorizing electronic voting methods.
Michigan – M.C.L.A. 38.3 governs membership for the Retirement Board of the State Employees' Retirement System. Members are appointed in different employment categories by the governor. Similarly, under M.C.L.A. 38.1322, the governor appoints members to the board of the Public School Employees' Retirement System. Because members are appointed, there are therefore no regulatory provisions governing elections, including electronic voting procedures.
Minnesota – Regulations governing board elections for the Minnesota State Retirement System are found in Chapter 7900. The regulations cover standard paper ballots and do not include special provisions for electronic voting procedures.
Summary of factual data and analytical methodologies
ETF worked closely with the Employee Trust Funds Board and Teachers Retirement Board in formulating the needs for electronic voting methods. The rule was put before the boards on two occasions for input and commentary. Analysis hinged on the benefits of paperless elections, including: efficiency and cost, and convenience for voters.
Accuracy, integrity, objectivity and consistency of data
The present rule changes were a result of recommendations from the relevant governing boards and considerations of the efficiency and convenience attributable to electronic voting procedures. ETF conducted analysis with integrity in an accurate, objective, and consistent manner in accordance with its fiduciary responsibilities to its members.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report
The rule does not have an effect on small businesses because the elections rule governs procedures for electing members to governing boards of a public agency whose members are public employees or annuitants.
Effect on Small Business
There is no effect on small business.
Agency Contact Person
Steve Hurley, Director of the Office of Policy, Privacy and Compliance, Department of Employee Trust Funds, P.O. Box 7931, Madison WI 53707. Telephone: (608) 267-2847. E-mail address:
steve.hurley@etf.state.wi.us.
Fiscal Estimate
The rule will not have any fiscal effect on the administration of the Wisconsin Retirement System, nor will it have any fiscal effect on the private sector, the state or on any county, city, village, town, school district, technical college district, or sewerage districts.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original Updated Corrected
|
Administrative Rule Chapter, Title and Number
|
ETF 10.10 Employee trust funds board and teachers retirement board elections
|
Subject
|
Election of members to employee trust funds and teachers retirement board
|
Fund Sources Affected
|
Chapter 20 , Stats. Appropriations Affected
|
GPR FED PRO PRS SEG SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
Indeterminate
|
Increase Existing Revenues
Decrease Existing Revenues
|
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
State's Economy
Local Government Units
|
Specific Businesses/Sectors
Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
|
Policy Problem Addressed by the Rule
|
ETF seeks to clarify the Secretary's authority under s. 40.03 (2) (p), Stats., to choose alternate means of holding elections of members to the Teachers Retirement Board and Employee Trust Funds Board. When warranted, holding board elections electronically can promote efficiency and minimize costs. Additional changes to the rule are made for the simplification of the elections provisions.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
There is no economic and fiscal impact on small business, business sectors, public utility rate payers, local governmental units and the state's economy as a whole. The rule change addresses the need to clarify statutory authority of the ETF Secretary to hold board elections in any reasonable manner, including electronic means, and to simplify the current code governing board elections procedures. These changes will not have a fiscal effect.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
Implementing the rule changes will provide more clarity in the board elections rule, and will afford the Secretary the authority to utilize electronic voting methods in electing members to the board. Electronic voting will provide cost-effective, efficient, faster, and more convenient options for board elections.
|
Long Range Implications of Implementing the Rule
|
There are no long range economic or fiscal impacts of the rule.
|
Compare With Approaches Being Used by Federal Government
|
Electronic voting methods have become increasingly utilized in all layers of government.
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
Illinois – The relevant regulations governing board elections to the State Employees' Retirement System of Illinois are found in 80 Ill. Adm. Code 1540.330, Board Elections. The code sets forth procedures for standard paper ballot elections, and does not include provisions for electronic voting.
Iowa – Iowa law establishes the Iowa Benefits Advisory Committee (BAC) under Iowa Code section 97B.8B. Regulations governing the BAC are provided in IAC 495-3.1. State law gives Iowa Public Employees' Retirement System authority to adopt election rules, however the regulations do not provide for election procedures. There are likewise no regulations governing or authorizing electronic voting methods.
Michigan – M.C.L.A. 38.3 governs membership for the Retirement Board of the State Employees' Retirement System. Members are appointed in different employment categories by the governor. Similarly, under M.C.L.A. 38.1322, the governor appoints members to the board of the Public School Employees' Retirement System. Because members are appointed, there are therefore no regulatory provisions governing elections, including voting procedures.
Minnesota – Regulations governing board elections for the Minnesota State Retirement System are found in Chapter 7900. The regulations cover standard paper ballots and do not include special provisions for electronic voting procedures.
|
Notice of Proposed Rulemaking
Without Public Hearing
Public Defender Board
The State of Wisconsin Public Defender Board (SPD) announces the revision of section
PD 3.03, relating to determination of financial eligibility, the determination of eligibility for the assignment of publicly appointed counsel.
The proposed rule brings an existing rule into conformity with sections
977.02 (3) (b) and
(c), Stats., enacted pursuant to
2011 Act 32. Pursuant to section
227.16 (2) (b), Stats., a public hearing is not required.
Submittal of Written Comments
Interested persons are invited to comment on the rule by
March 15, 2012. Written comments should be addressed to: Kathy Pakes, SPD, PO Box 7923, Madison, WI 53707-7923, or by email:
pakesk@opd.wi.gov.
Copies of Proposed Rule
You may contact Kathy Pakes at
pakesk@opd.wi.gov or by telephone at (608) 266-0087 to request a copy (at no cost) of the rule and fiscal note be sent to you by U.S. mail.
Analysis Prepared by the Wisconsin Public Defender Board
Statutes interpreted
Statutory authority
