Section
138.14 (14) (h), Stats., which states that “[t]he division shall, by order or rule, specify a database transaction fee of no more than $1 that the database provider shall charge to licensees to cover the costs of developing and implementing the database, and accessing the database to verify that a customer does not have any payday loans with the licensee or others that in combination with a new transaction will create a violation of this section."
Related statutes or rules
Plain language analysis
As a result of the passage of
2011 Wisconsin Act 32, changes to the existing payday lending rule are necessary to address conflicts that may exist between the current law and the existing rule.
A further objective is to provide clarity and direction for lenders making payday loans, as well as create clear guidance for the Department of Financial Institutions (“DFI"), which is charged with enforcing s.
138.14, Stats.
Summary of and comparison with existing or proposed federal regulations
DFI is aware that the Consumer Financial Protection Bureau intends to focus some of its resources on payday lending, but is unaware of any currently proposed regulation or rule.
Comparison with rules in adjacent states
An internet-based search of payday lending regulations for the states of Illinois, Iowa, Michigan and Minnesota found the following:
All four states now regulate payday lending.
Illinois has an extensive number of payday lending rules including rules covering topics such as: loan terms, a certified database method of verification and gross monthly income verification.
Iowa has no applicable rules at this time.
Michigan has a limited number of payday lending rules. An internet search of rules for Michigan finds their rules focus on definitions in regards to a database.
Minnesota has a limited number of rules regarding licensed regulated lenders, which may include payday lenders. Their rules cover the following topics: licensed office, maximum loan applies to multiple offices, licensees to be responsible for acts of assignees, management and control, transferred accounts, and computing date and time.
Summary of factual data and analytical methodologies
In developing these rules, the department reviewed payday lending laws in states across the country. The department is engaged in outreach with payday lenders and consumer organizations to gather input. Because the department regulates licensed financial services for the state, the division could rely on extensive staff expertise and experience in drafting regulations for these entities.
Analysis and supporting documents used to determine effect on small business
The division anticipates that any economic impact of implementing the rule would be minimal. The rule provides clarity to the payday lending industry with clear definitions and requirements which now must be made as the result of
2011 Wisconsin Act 32. Overall the requirements of this rule are straight-forward for ease in compliance.
Effect on small business
The proposed rule may require payday lenders to make minor changes to websites and/or forms. The agency's experience in making similar changes to DFI's website or forms indicates that the cost of making such changes is minimal.
Summary of Fiscal Estimate and Economic Impact Analysis
The division of banking anticipates that any economic impact of implementing the rule would be minimal. The proposed rule may require payday lenders to make minor changes to websites and/or forms. The agency's experience in making similar changes to the department's website or forms indicates that the cost of making such changes is minimal.
Small Business Regulatory Coordinator
The agency's small business regulatory coordinator is Eric Knight, tel. (608) 267-1718, e-mail
eric.knight@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
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Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
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ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
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1. Type of Estimate and Analysis
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X Original
Updated Corrected
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2. Administrative Rule Chapter, Title and Number
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Chapter DFI-Bkg 75 Payday Lending
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3. Subject
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Payday Lending
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4. Fund Sources Affected
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5. Chapter 20, Stats. Appropriations Affected
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GPR FED
X PRO PRS
SEG SEG-S
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20.144 (1) (g)
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6. Fiscal Effect of Implementing the Rule
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X No Fiscal Effect
Indeterminate
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Increase Existing Revenues
Decrease Existing Revenues
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Increase Costs
Could Absorb Within Agency's Budget
Decrease Cost
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7. The Rule Will Impact the Following (Check All That Apply)
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State's Economy
Local Government Units
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X Specific Businesses/Sectors
Public Utility Rate Payers
Small Businesses (if checked, complete Attachment A)
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8. Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
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9. Policy Problem Addressed by the Rule
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As a result of the passage of 2011 Wisconsin Act 32, changes to the existing payday lending rule are necessary to address conflicts that may exist between the current law and the existing rule.
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10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
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Industry representatives and consumer groups.
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11. Identify the local governmental units that participated in the development of this EIA.
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None.
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12. 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)
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The division of banking anticipates that any economic impact of implementing the rule would be minimal. The proposed rule may require payday lenders to make minor changes to websites and/or forms. The agency's experience in making similar changes to the department's website or forms indicates that the cost of making such changes is minimal.
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13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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14. Long Range Implications of Implementing the Rule
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The rule provides clarity to the payday lending industry with clear definitions and requirements. There should be no long term impact associated with implementing the rule. Overall the requirements of this rule are straight-forward for ease in compliance.
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15. Compare With Approaches Being Used by Federal Government
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DFI is aware that the Consumer Financial Protection Bureau intends to focus some of its resources on payday lending, but is unaware of any currently proposed regulation or rule.
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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An internet-based search of payday lending regulations for the states of Illinois, Iowa, Michigan and Minnesota found the following:
All four states now regulate payday lending. Illinois has an extensive number of payday lending rules including rules covering topics such as: loan terms, a certified database method of verification and gross monthly income verification. Iowa has no applicable rules at this time. Michigan has a limited number of payday lending rules. An internet search of rules for Michigan finds their rules focus on definitions in regards to a database. Minnesota has a limited number of rules regarding licensed regulated lenders, which may include payday lenders. Their rules cover the following topics: licensed office, maximum loan applies to multiple offices, licensees to be responsible for acts of assignees, management and control, transferred accounts, and computing date and time.
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17. Contact Name
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18. Contact Phone Number
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Susan Dietzel
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608-267-0399
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This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearing
Health Services
DHS 196 and Appendix (WI Food Code)
NOTICE IS HEREBY GIVEN That pursuant to sections
254.74 (1) (a) and
(d) Stats., the Department of Health Services will hold a public hearing to consider the amendment of rules revising Chapter
DHS 196, relating to restaurants and the Wisconsin Food Code.
Hearing Information
Date: Tuesday, October 9, 2012
Time: 10:00 a.m.-2:00p.m.
Location: Wisconsin Department of Agriculture, Trade and Consumer Protection
2811 Agriculture Drive
Madison, WI 53718
Date: Thursday, October 11, 2012
Time: 10:00 a.m.-2:00p.m.
Location: Waupaca Public Courthouse
Room LL42
811 Harding Street
Waupaca, Wisconsin 54981
Date: Friday, October 12, 2012
Time: 10:00 a.m.-2:00p.m.
Location: Eau Claire State Office Building
718 W. Clairemont Ave
Eau Claire, WI 54701
Accessibility
English
DHS is an equal opportunity employer and service provider. If you need accommodations because of a disability or need an interpreter or translator, or if you need this material in another language or in an alternate format, you may request assistance to participate by contacting James Kaplanek at 608-261-8361. You must make your request at least 7 days before the activity.
Spanish
DHS es una agencia que ofrece igualdad en las oportunidades de empleo y servicios. Si necesita algún tipo de acomodaciones debido a incapacidad o si necesita un interprete, traductor o esta información en su propio idioma o en un formato alterno, usted puede pedir asistencia para participar en los programas comunicándose con James Kaplanek al número 608-261-8361. Debe someter su petición por lo menos 7 días de antes de la actividad.
Hmong
DHS yog ib tus tswv hauj lwm thiab yog ib qhov chaw pab cuam uas muab vaj huam sib luag rau sawv daws. Yog koj xav tau kev pab vim muaj mob xiam oob qhab los yog xav tau ib tus neeg pab txhais lus los yog txhais ntaub ntawv, los yog koj xav tau cov ntaub ntawv no ua lwm hom lus los yog lwm hom ntawv, koj yuav tau thov kev pab uas yog hu rau James Kaplanek ntawm 608-261-8361. Koj yuav tsum thov qhov kev pab yam tsawg kawg 7 hnub ua ntej qhov hauj lwm ntawd.
Copies of Proposed Rule and Fiscal Estimate-Economic Impact Analysis
A copy of the proposed rule and the fiscal estimate-economic impact analysis may be obtained from the Department of Health Services at no charge by downloading the documents from
www.adminrules.wisconsin.gov or by contacting:
James Kaplanek
Food Safety and Recreational Licensing Section
1 W. Wilson Street
Room #150
Madison, WI 53701
Place Where Comments are to be Submitted and Deadline for Submission
Comments may be submitted to James Kaplanek or to the Wisconsin Administrative Rules Website at
www.adminrules.wisconsin.gov until
Friday, October 12, 2012,
4:30 p.m.
Analysis Prepared by the Department of Health Services
Statutes interpreted
Statutory authority
Explanation of agency authority
Section
254.74 (1) Stats, gives the department the broad authority to administer and enforce this subchapter, the rules promulgated under this subchapter and any other rules or laws relating to the public health and safety in hotels, tourist rooming houses, bed and breakfast establishments, restaurants, vending machine commissaries, vending machines and vending machine locations.
DHS's authority to make rules relating to restaurants is found in s.
254.74 (1) (d), Stats., which provides that DHS may prescribe rules and fix standards, including rules covering the general sanitation and cleanliness of premises regulated under this subchapter, the proper handling and storing of food on such premises, the construction and sanitary condition of the premises and equipment to be used and the location and servicing of equipment.
The format of the Wisconsin Food Code is different than that of most state administrative rules. DHS is authorized under s.
227.14 (1s), Stats., to use the drafting format of the Federal Drug Administration (FDA) Model Food Code. This rule follows that authorized format.
Related rules or statutes
DATCP 75.
Plain language analysis
DHS currently licenses (issues permits to) and inspects restaurants under ch.
DHS 196 and its appendix, the Wisconsin Food Code. The proposed changes updates ch.
DHS 196, and the existing Wisconsin Food Code to the 2009 FDA Model Food Code. DHS last revised the Wisconsin Food Code in 2006 when it adopted the 2005 FDA Model Food Code in a joint effort with the Department Agriculture, Trade and Consumer Protection (DATCP) which administers the Wisconsin Food Code (appendix to ch.
ATCP 75) with respect to licensing and inspection of retail food establishments such as grocery stores. Since that time food safety practices have advanced and the new 2009 FDA Model Food Code reflects the current science regarding food safety practices, procedures, and policies. The FDA Model Food Code is a living breathing document that is updated every 4 years to reflect current thinking and science in the areas of food safety. DHS tries to adhere to that schedule to provide their operators the most updated rules that reflect current trends and science in food safety.
The proposed Wisconsin Food Code incorporates by reference, the U.S. Department of Health and Human Services, Public Health Service, FDA, publication Grade “A" Pasteurized Milk Ordinance, (2011 Revision) and the Interstate Shellfish Sanitation Conference and U.S. Department of Health and Human Services, FDA publication, National Shellfish Sanitation Program, Guide
for the Control of Molluscan Shellfish, (2009 Revision). DHS is currently seeking the consent of the Attorney General to incorporate these standards in the final proposed rules.
The following is a summary of the changes made to ch.
DHS 196 and its appendix, the Wisconsin Food Code:
DHS 196
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Clarifies language requiring plan review for new and extensively remodeled restaurants and additional areas.
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Updates references to the 2009 FDA Model Food Code.
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Adds a new definition for “extensively remodeled."
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Removes definitions from the Wisconsin Food Code relating to restaurant permitting and places them into ch.
DHS 196, where they were previously located. The terms include “General Public", “Meal", “Occasional", and “Temporary Restaurant". The definitions are updated to provide clarity.
DHS 196 Appendix (Wisconsin Food Code) -Broad-Based Changes to the Wisconsin Food Code
1. Errors in punctuation, spelling and use of defined terms were corrected throughout.
2. The term Potentially Hazardous Food was changed to Potentially Hazardous Food (Time/Temperature Control for Safety Food) throughout the Wisconsin Food Code.
3. The word “person" is replaced with the word “individual" throughout the Wisconsin Food Code.
4. “Of this section" follows ¶ (X) throughout the Wisconsin Code to be consistent with 2009 FDA Model Food Code language.
5. “Handwashing sink" replaces “handsink" throughout the Wisconsin Food Code.
6. The superscript (C), (N), and (S) are replaced with superscript (P) and (Pf) throughout the Wisconsin Food Code.
7. References to other federal and state codes as well as references referring to other food code sections have been updated throughout the Wisconsin Food Code.
8. Sections containing “exceptions" are now located in the first sentence to conform to 2009 FDA Model Food Code language.
9. The word “an exposure" is replaced with “a contact" throughout the Wisconsin Food Code.
10. The word “certified manager" is replaced with “certified food manager" throughout the Wisconsin Food Code.
