Scope Statements
Children and Families
Rule No.
DCF 201.
Relating to.
Wisconsin Shares Provider Fingerprint Requirement.
Rule Type
Permanent.
Detailed Description of the Objective of the Proposed Rule
The 2011-2013 biennial budget bill contained a requirement that a person seeking a child care license, child care certification, or contract to operate a child care program under s.
120.13 (14), Stats., submit fingerprints for an FBI criminal history check. (2011 Assembly Bill 40, section 1335d) The Governor vetoed this provision and issued the following directive:
I am vetoing this provision because requiring fingerprints of all child care providers creates an unnecessary burden for small child care businesses. If there is reasonable basis for further investigation as a result of required background checks, fingerprints can already be required. However, for child care providers who wish to participate in the Wisconsin Shares program, additional safeguards must be implemented to ensure that taxpayer dollars are spent properly. Reducing fraud and protecting the safety of children in the Wisconsin Shares program are top priorities of my administration. Therefore, I am directing the Department of Children and Families to amend the administrative rules for certified and licensed child care providers to require that any provider who wishes to participate in the Wisconsin Shares program submit fingerprints to the Department of Children and Families, a county department, or agency contracted to administer the Wisconsin Shares program.
The proposed rule will amend ch.
DCF 201, relating to the administration of child care funds, to require a child care provider to submit fingerprints and the fee for an FBI criminal history check to the department or certification agency before a child care subsidy administrative agency may authorize payment to the provider for child care services for a child whose care is subsidized under s.
49.155, Stats. The rule will allow for the electronic submission of fingerprints, as allowed by the Department of Justice.
Detailed Explanation of Statutory Authority for the Rule
Section
48.685 (2) (bm), Stats., provides that if the person who is the subject of a background check is not a resident of this state; has not been a resident at any time within the 3 years preceding the background check; or if the regulating agency determines that the person's employment, licensing, or state court records provide a reasonable basis for further investigation, the regulating agency shall make a good faith effort to obtain from any state or other U.S. jurisdiction the same background information that is required to be gathered from Wisconsin sources under s.
48.685 (2) (am), Stats. The regulating agency may require the person to be fingerprinted on 2 fingerprint cards, each bearing a complete set of the person's fingerprints. The Department of Justice may provide for the submission of the fingerprint cards to the Federal Bureau of Investigation for the purposes of verifying the identity of the person fingerprinted and obtaining records of his or her criminal arrests and convictions.
Section
227.11 (2) (a), Stats., expressly confers rule-making authority on each agency to 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.
Estimate of Amount of Time that State Employees will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
80 hours.
List with Description of All Entities that may be Affected by the Proposed Rule
•
Current child care providers licensed under s.
48.65, Stats.; certified under s.
48.651, Stats.; or contracted to operate a child care program under s.
120.13 (14), Stats., who care for children whose care is subsidized under s.
49.155, Stats.
•
Applicants for a child care license under s.
48.65, Stats.; child care certification under s.
48.651, Stats.; or contract to operate a child care program for under s.
120.13 (14), Stats., who plan to care for children whose care is subsidized under s.
49.155, Stats.
•
Child care subsidy administrative agencies
•
Child care certification agencies
Summary and Preliminary Comparison with any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Proposed Rule
None.
Anticipated Economic Impact of Implementing the Rule (Note: if the Rule is Likely to have a Significant Economic Impact on Small Businesses)
Minimal economic impact.
Contact Person
Susan Pfeiffer, Division of Early Care and Education
(608) 266-8702
Insurance
This statement of scope was approved by the governor on September 13, 2012.
Rule No.
Relating to
Risk based capital requirements and affecting small business.
Rule Type
Permanent.
Detailed Description of the Objective of the Rule
The objective is to change the level at which a life risk-based capital (RBC) trend test would trigger a company action level event, effectively resulting in earlier remedial action for a life insurer or fraternal insurer that is trending badly. In addition, the changes would make Wisconsin's regulations consistent with the National Association of Insurance Commissioners (“NAIC") model regulation.
Description of the Existing Policies Relevant to the Rule and of New Policies Proposed to be Included in the Rule and an Analysis of Policy Alternatives; the History, Background, and Justification for the Proposed Rule
The existing regulation establishes RBC requirements for an insurer based on the risks inherent in the insurer's operations by requiring it to perform a calculation of its authorized control level RBC. Under the current regulation, a company action level event, which requires the company to take certain remedial steps, is triggered if:
(a) An insurer's capital is between 1.5 and 2.0 times the authorized control level RBC, or
(b) The insurer's capital is at or below 2.5 times the authorized control level RBC and the insurer has a negative trend test result, calculated pursuant to the RBC instructions.
The proposed rule would change the “2.5" in (b) to “3.0"; i.e., a company action level event would occur if the insurer's capital is at or below 3.0 times the authorized control level RBC and the insurer has a negative trend test result.
Updating this regulation consistent with the NAIC model regulation will also bring Wisconsin's requirements for life insurers into alignment with the requirements for health insurers and property and casualty insurers.
Detailed Statutory Authority for the Rule (Including the Statutory Citation and Language)
Pursuant to s.
623.11 (1), Wis. Stats., “The commissioner shall, when necessary, determine the amount of compulsory surplus that an insurer is required to have in order not to be financially hazardous under s.
645.41 (4), Wis. Stats., as an amount that will provide reasonable security against contingencies affecting the insurer's financial position that are not fully covered by reserves or reinsurance."
Pursuant to s.
623.11 (2), Wis. Stats., “The commissioner may . . . establish by rule minimum ratios for the compulsory surplus in relation to any relevant variables, including the following: (a) amounts at risk; (b) premiums written or premiums earned; (c) liabilities; (d) equity investments of all or certain kinds in combination with any of the variables under pars. (a) to (c)."
The company action level provision under the regulation provides an early warning that an insurer might be approaching a financially hazardous condition. The proposed change to the regulation would modify a single variable, as authorized by s.
623.11 (2), Wis. Stats., potentially resulting in an earlier warning that a company is approaching financially hazardous condition.
Estimate of the Amount of Time that State Employees will Spend to Develop the Rule and of Other Resources Necessary to Develop the Rule
200 hours and no other resources are necessary to develop the rule.
