This statement of scope was approved by the governor on April 17, 2013.
Rule No.
Creates section Tax 2.465.
Relating to
The apportionment of Wisconsin apportionable income of interstate air freight forwarders that are affiliated with a direct air carrier.
Rule Type
Permanent.
1. Detailed Description of the Objective of the Proposed Rule
If the proper amount of income assignable to Wisconsin for any corporation cannot be determined with reasonable certainty using the current apportionment rules, the department may prescribe rules.
Currently, there are taxpayers in Wisconsin who facilitate the transportation of property by air, and would otherwise be required to use the apportionment rules provided for interstate air carriers, except they do not operate any aircraft. These businesses are commonly known as air freight forwarders.
The department's objective is to create s. Tax 2.465 to specify the apportionment factors for determining the amount of income assignable to Wisconsin for air freight forwarders that are affiliated with a direct air carrier.
2. Description of the Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Existing policies for assigning income to Wisconsin are set forth in the rules. Specifically, s. Tax 2.46 describes the factors used to apportion income to Wisconsin for interstate air carriers. The proposed rules will provide guidance to air freight forwarders on how to properly apportion/assign income to Wisconsin. If a rule is not implemented, there will continue to be uncertainty for these businesses as they plan, prepare, and file their Wisconsin tax returns.
3. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Sections 71.04 (8) (c) and 71.25 (10) (c), Wis. Stats., require the department to promulgate rules for apportioning income of specialized industries, specifically “The net business income of railroads, sleeping car companies, car line companies, pipeline companies, financial organizations, telecommunications companies, air carriers, and public utilities requiring apportionment shall be apportioned pursuant to rules of the department of revenue, but the income taxed is limited to the income derived from business transacted and property located within the state."
Section 71.25 (12), Wis. Stats., provides “If the income of any such corporation properly assignable to the state of Wisconsin cannot be ascertained with reasonable certainty by the methods under this section, then the same shall be apportioned and allocated under such rules as the department of revenue may prescribe."
Section 227.11 (2) (a), Wis. Stats., provides “[e]ach 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..."
4. Estimate of Amount of Time that State Employees Will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The department estimates it will take approximately 100 hours to develop the rule.
5. List with Description of all Entities that may be Affected by the Proposed Rule
Air freight forwarders who are not direct air carriers, but are affiliated with direct air carriers.
6. 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
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
7. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
No economic impact is anticipated.
8. Contact Person
Dale Kleven, (608) 266-8253.
Safety and Professional Services
Safety, Buildings, and Environment — Plumbing,
Chs. SPS 381—387
This statement of scope was approved by the governor on April 29, 2013.
Rule No.
Revises chapters SPS 381 to 384.
Relating to
EPA Lead Reduction Rule, US Safe Drinking Water Act of 2011.
Rule Type
Permanent.
1. Finding/Nature of Emergency (Emergency Rule Only)
N/A.
2. Detailed Description of the Objective of the Proposed Rule
The objective of the rule is to revise portions of the state plumbing code, chs. SPS 381 to 384, to conform to the US Safe Drinking Water Act of 2011 [SDWA, 42 USC 300g-6], which becomes effective January 4, 2014. Proposed revisions pertain to updating the definition for “lead-free" and adopting by reference an updated standard, ANSI/NSF-61 which reflects the SDWA. In addition, new text may need to be created to specify exemptions to the law. Minor formatting changes and typographical errors may also be addressed at this time.
3. Description of the Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
The SDWA of 2011 re-defines “lead-free" as being not more than 0.2 percent lead with respect to solder and flux, and not more than a weighted average of 0.25 percent lead with respect to wetted surfaces of pipes, pipe fittings, plumbing fittings, and fixtures. The current code, ch. SPS 381 defines “lead-free" as “a chemical composition equal to or less than 0.2% of lead". Other portions of the plumbing code relating to water service piping and materials stipulate that all pipes and pipe fittings for potable water supply systems shall be made of a material that contains not more than 8% lead, a level substantially above the new standard.
Additionally, the proposed revisions will require the department to incorporate by reference one updated national standard ANSI/NSF 61-2010, Drinking Water System Components — Health Effects.
Not moving forward with these proposed revisions will result in the State of Wisconsin being out of compliance with the SDWA of 2011, which restricts permissible levels of lead in drinking water components and provides manufacturers and distributors a protocol to assure compliance. (To date, only four states have revised their rules to be in compliance with the law before the effective date: California, Louisiana, Maryland and Vermont.)
4. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Section 227.11 (2), Stats.: “Rule-making authority is expressly conferred as follows: (a) Each 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, but a rule is not valid if the rule exceeds the bounds of correct interpretation."
Section 145.02 (2), Stats.: “The department shall have general supervision of all such plumbing and shall after public hearing prescribe and publish and enforce reasonable standards therefor which shall be uniform and of statewide concern so far as practicable. "
Section 145.13, Stats.: “Adoption of plumbing code. The state plumbing code and amendments to that code as adopted by the department have the effect of law in the form of standards statewide in application and shall apply to all types of buildings, private or public, rural or urban, including buildings owned by the state or any political subdivision thereof. The state plumbing code shall comply with ch. 160 (Wis. Stats.). All plumbing installations shall so far as practicable be made to conform to such code."
5. Estimate of Amount of Time that State Employees Will Spend Developing the Rule and of other Resources Necessary to Develop the Rule
The staff time needed to develop the rules is expected to be about 180 hours, which may include convening an advisory committee. This estimate includes research, rule drafting, public hearing through adoption. Two copies of the adopted standard will be purchased for approval prior to rule adoption. All work will be accomplished by existing staff.
6. List with Description of all Entities that may be Affected by the Proposed Rule
Local water purveyors, product manufacturers and distributors, plumbing designers, and inspectors.
7. 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
To conform with the SDWA of 2011, which will be in effect January 4, 2014, the proposed revisions will revise both the definition of and the means to determine “lead-free" which now exist in the state plumbing code.
8. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
This rule-making project will not impose any additional impact on small business above or beyond what is required by the federal government.
9. Contact Person
Jean MacCubbin, (608) 266-0955.
Safety and Professional Services —
Pharmacy Examining Board
This statement of scope was approved by the governor on April 29, 2013.
Rule No.
Revises Chapter Phar 18.
Relating to
The administration of the prescription drug monitoring program.
Rule Type
Permanent.
1. Finding/Nature of Emergency (Emergency Rule Only)
N/A.
2. Detailed Description of the Objective of the Proposed Rule
The Pharmacy Examining Board (Board) seeks to modify ch. Phar 18 to conform to statutory changes in 2013 Wis. Act 3 which removed veterinarians from the list of practitioners required to comply with the requirements of the Prescription Drug Monitoring Program (PDMP). Specifically, the modifications would delete the definition of “veterinary dispenser" in s. Phar 18.02 (22), delete all subsequent uses of the term “veterinary dispenser" in this chapter, amend the required data elements identified in s. Phar 18.04 by modifying the requirements previously added to enable veterinary dispensers to more easily comply with the rules, and correct the citations to the statute due to the statutory changes in Act 3.
3. Description of the Existing policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Currently, ch. Phar 18 contradicts the statutory directive to create the PDMP in s. 450.19, Stats., as modified by 2013 Wis Act 3. The current language in ch. Phar 18 requires veterinarians, or “veterinary dispensers" under the rule, to collect and submit to the PDMP specific data about monitored prescription drugs that they dispense. 2013 Wis. Act 3 removed veterinarians from the definition of “practitioners" required to collect and submit data to the PDMP and prevents the Board from requiring veterinarians to submit data that they have collected pursuant to the current rule language. An alternative to the making the modifications is to not make the modifications, which would result in ch. Phar 18 continuing to contradict s.450.19, Stats., as amended by 2013 Act 3.
4. Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
In s. 450.19 (2), Stats., the legislature directs the Board to establish rules to govern the PDMP. In s. 961.31, Stats., the legislature also authorizes the Board to promulgate rules relating to the dispensing of controlled substances. Finally, in ss. 15.08 (5) (b), and 227.11 (2) (a), Stats., the legislature confers to the Board the powers to promulgate rules for the guidance of the profession and to interpret the provisions of statutes it enforces.
5. Estimate of Amount of Time that State Employees will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
40 hours.
6. List with Description of all Entities that may be Affected by the Proposed Rule
1) Licensees who are authorized to prescribe and dispense controlled substances: Advanced Practice Nurse Prescribers, Anesthesiologist Assistants, Dentists, Pharmacies, Pharmacists, Physicians, Physician Assistants, Podiatrists, and Veterinarians.
2) Department of Safety and Professional Services Staff.
7. 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
There are no existing or proposed federal regulations intended to address the activities regulated by the proposed rule.
8. Anticipated Economic Impact of Implementing the Rule (Note if the Rule is LIkely to Have a Significant Economic Impact on Small Businesses)
There is no anticipated economic impact of the proposed rule.
9. Contact Person
Jean MacCubbin, (608) 266-0955.
Safety and Professional Services —
Marriage and Family Therapy, Professional Counseling and Social Work Examining Board
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