EmR0911 Hearing to consider emergency rules to create s. VA 2.01 (1) (u), (3) (d), (e), and (f), relating to the assistance to needy veterans grant program.

Related statute or rule

ss. 84.185(4) and 85.52 , Stats.

Plain language analysis

This rule making will implement the provisions of 2007 Wis. Act 125 that relate to: (1) providing verified statements from an independent certified accountant and the director or principal officer of the recipient of a grant or loan, (2) permitting the Department to recoup payments made, withhold payments due, or impose a forfeiture on a noncompliant recipient of a grant or loan, and (3) including contract provisions into project agreements specifying the format and frequency of the report to be submitted by the recipient to the Department. These rule changes will affect the reporting and evaluation of performance measures for each economic development program administered by the Department.

Comparison with federal regulations

No federal regulation applies to other DOT programs defined as an "economic development program" under 2007 Wis. Act 125 . The Act defines economic development program as a program or activity having the primary purpose of encouraging the establishment of growth of business in the state, including the creation and retention of jobs. Department programs are transportation infrastructure projects that contribute to the mobility, safety and transportation efficiency for transporting freight and the traveling public.

Comparison with rules in adjacent states

Michigan

Economic grants and loans to businesses are administered through the Michigan Economic Development Corporation, formed in 1999 through an alliance between the State of Michigan and several local communities. The Corporation is the successor to the Michigan Jobs Commission, the state's economic development department. The corporation maintains the database regarding the grant and loan awards and conducts audits regarding the performance of the financial programs. Travel Michigan, a division of the Corporation, provides the tourism promotional functions for the state. There is no online website or annual reports available via the website with a listing for the grant and loan recipients.

Minnesota

Section 116J.994, creation of a Business Assistance Report with a list of businesses receiving state assistance, amount of subsidy, number of jobs, hourly wages, and cost of health insurance broken down by wage level. Information on companies receiving assistance is posted online.

Illinois

Public Act 552-93 of 2003, annual progress reports required as to the amount and type of assistance, job creation/retention, job classifications and average wages. Progress reports are available online in searchable database by year and program type.

Iowa

Iowa Code s. 15.113 and other statutes require mandatory reports regarding the financial assistance provided to private businesses. The Iowa Department of Economic Development administers and provides oversight for the assistance programs. The development agency adopted rules on June 15, 2007, to implement a new job counting and tracking method. Under this Department, there is a legal and compliance team responsible for conducting onsite monitoring at project completion, job maintenance, contract amendments, and the preparation of progress reports. These reports are published periodically and are available online.

Summary of factual data and analytical methodologies

The amendments to ss. Trans 510.08 and 512.06 were proposed to bring the Department's economic development programs in compliance with the specific reporting and evaluation requirements of s. 84.01 (6m) (b) 6. and 7. , as created by 2007 Wis. Act 125 .

Analysis and supporting documentation used to determine effect on small businesses

A database of 296 previous and current TEA grant awards were analyzed for impacts to small businesses

Small Business Impact

Since TEA grants provide transportation infrastructure necessary for newly-created or expanded businesses in the state, the analysis revealed that the kind of businesses in the program will have little or no difficulty in complying with the jobs reporting requirement. Job numbers are also reported as part of the unemployment compensation program under the Department of Workforce Development The sponsoring community receiving the grant award will be asked to provide a jobs information report compiled by an independent certified accountant and a public official of the recipient community for each business as specified in the jobs guarantee agreement that benefited from the transportation infrastructure improvement. The annual jobs report will be provided to the TEA grant manager annually for seven years or for a duration as specified in the jobs guarantee agreement. Failure to provide annual reports could result in the reimbursement of the grant to the Department of Transportation.

Small business regulatory coordinator

The Department's Regulatory Review Coordinator may be contacted by e-mail at [e-mail] , or by calling [phone].

Fiscal Estimate

The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands.

Anticipated costs incurred by private sector

The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.

Notice of Hearing

Veterans Affairs

EmR0911

NOTICE IS HEREBY GIVEN That pursuant to s. 45.40 (3m) , Stats., and Chapter 227 , Stats., the Wisconsin Department of Veterans Affairs will hold a public hearing to consider the creation of section VA 2.01 (1) (u) , (3) (d) , (e) , and (f) as emergency rules relating to the assistance to needy veterans grant program.

Hearing Information

The public hearing will be held as follows:

Date and Time	Location
August 14, 2009 Friday	Department of Veterans Affairs Board Room
10:00 a.m.	8th Floor
	30 West Mifflin Street Madison, WI

The public hearing site is accessible to people with disabilities.

If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please contact James A. Stewart at [phone] or [e-mail]

Submission of Written Comments

Comments on the emergency rules may be submitted to James A. Stewart, 30 West Mifflin Street, P.O. Box 7843, Madison, WI 53707-7843. Phone: [phone] E-Mail: [e-mail] .

Comments should be submitted no later than August 28, 2009.

Analysis Prepared by the Wisconsin Department of Veterans Affairs

Statute interpreted

Section 45.40 (2) , Stats.

Statutory authority

Section 45.40 (3m) , Stats.

Explanation of agency authority

The department is charged with administering a grant program to assist needy veterans with health care. It provides eligible applicants with dental, hearing and vision care through private health care providers. The Legislature has granted the agency authority to promulgate "eligibility criteria" which the agency interprets to include both definitions of the eligible care under this program and the amount of funding for each type of eligible care. These emergency rules were promulgated under the authority of s. 227.24 (1) (c) , Stats.

Related statute or rule

There is no related statute or rule.

Plain language analysis

The creation of s. VA 2.01 (1) (u) , (3) (d) , (e) , and (f) will create a definition of "vision care" and establish the limitation of health care assistance available under this program. The program is intended to provide health care assistance to those veterans who are not eligible for the federal assistance offered to veterans. Current definitions of "dental care" and "hearing care" do not provide an eligibility limitation on the provision of care which health care professionals can provide. No definition or eligibility limitation on services exists for "vision care" in the current program. The creation of eligibility limitations for "dental care" and "hearing care", as well as the creation of a definition and eligibility limitation for "vision care" will allow veterans to receive a reasonable modicum of the benefits available to those veterans eligible for federal assistance. The creation of VA 2.01 (3) (d), (e), and (f) will place eligibility limitations upon the cost, provision and frequency of available services.

Comparison with federal regulations

There is no current or pending federal regulation which would provide health care aid for the eligible veterans under this program.

Comparison with rules in adjacent states

There are no similar rules in adjacent states.

Summary of factual data and analytical methodologies

Surveys of multiple private vendors of dental care services, hearing care services, and vision care services were undertaken to refine the definition of each service. The United States Department of Veterans Affairs was also contacted to determine what services were offered through that agency and to review costing mechanisms used in the provision of each of the elaborated health care services.

Analysis and supporting documents used to determine effect on small business

No analysis was performed regarding an economic impact statement.

Small Business Impact

These rules have no effect upon small businesses, nor any significant fiscal impact upon the private sector.

Fiscal Estimate

Assumptions used in arriving at fiscal estimate

Provisions of 2007 Wisconsin Act 20 eliminated caps for dental care, hearing care and vision care and increased the lifetime cap to $7,500. Prior to those changes, the annual cap for dental care was $2,500, $1,500 per ear for hearing care and $500 for vision care. The lifetime cap was $5,000. The authorized funding for the 2007-09 biennium is $1,492,000. Of that amount, $1,277,700 was expended in FY08, which left a balance of $214,300 to cover FY09 payments. As a result, the program was closed in October, 2008. Based on the FY08 usage rate and assuming the proposed rule changes are not enacted, the total estimated HCAG demand for the 2009-11 biennium would be about $5.5 million.

Only $1,991,500 in budget authority was requested in the 2009-11 biennial budget based on the assumption that rule changes would be adopted that reduce the amount of grants awarded under the ANV program to that level. Under the proposed rule changes noted above, the estimated demand would be about $2.24 million for the 2009-11 biennium. Thus, while the projected biennial savings as a result of the proposed rule changes would be about $3.3 million, an additional $240,000 of budget authority will be needed to cover the projected demand under the proposed rule changes.

State fiscal effect

Decrease costs.

Local government fiscal effect

None.

Fund sources affected

SEG.

Affected Ch. 20 appropriations

Section 20.485 (2) (vm) , Stats.

Agency Contact Person

James A. Stewart, Chief Legal Counsel, 30 West Mifflin Street, P.O. Box 7843, Madison, WI 53707-7843; Phone: [phone]; E-Mail: [e-mail] .

Text of Emergency Rule

SECTION 1. VA 2.01 (1) (u) is created to read:

VA 2.01 (1) (u) "Vision care

SECTION 2. VA 2.01 (3) (d) is created to read:

VA 2.01 (3) (d) Dental care limitation. Dental care shall not exceed $500 in any consecutive 12 month period except where an upper and lower denture is required and each denture shall not exceed $1875.00 in any consecutive 48 month period.

SECTION 3. VA 2.01 (3) (e) is created to read:

VA 2.01 (3) (e) Hearing care limitation. Hearing care shall not exceed $200.00 in any consecutive 12 month period except where a right or left ear hearing aid is required and each hearing aid shall not exceed $1875.00 in any consecutive 48 month period.

SECTION 4. VA 2.01 (3) (f) is created to read:

VA 2.01 (3) (f) Vision care limitation. Vision care shall not exceed $400.00 for both a vision exam and the purchase of lens and frame in any consecutive 12 month period.

Effective Dates

The emergency rules contained in this order took effect on the date of publication in the official state newspaper, July 1, 2009, as provided in s. 227.24 (1) (c) , Stats. The emergency rules shall apply to all applications received on or after that effective date. These rules shall terminate November 28, 2009, or 60 days following the date of any extension which may be granted, whichever is later.

Finding of Emergency

The Wisconsin Department of Veterans Affairs finds that an emergency exists and that the attached rules are necessary for the immediate preservation of the public peace, health, safety, or welfare. A statement of facts constituting the emergency is: The economic recession in effect for the last fiscal year has adversely affected the veteran population. Many veterans have lost their employment or had their scope of employment reduced. In addition to losing employment, many veterans have seen their health care reduced or eliminated. In order to serve the largest population of veterans and ensure minimal health care for that population, the department is requesting emergency rules to define "vision care" and to limit the eligibility, by available funding, for "dental care", "hearing care", and "vision care". These eligibility limitations, which address the cost, type and frequency of care available under the program, will allow more veterans in need to access the limited resources of this program.