Types of professional skills necessary for compliance with the rules.
There are no additional professional skills necessary for compliance with the rules.
Rules have a significant economic impact on small businesses?
No.
Small business regulatory coordinator
The small business regulatory coordinator for the Department of Commerce is Carol Dunn, who may be contacted at telephone (608) 267-0297, or Email at
carol.dunn@wisconsin.gov
.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The proposed rules relating to plan review and thresholds would have a minimal direct impact on small business. Plan review fees for a plumbing plan project involving 11 to 15 plumbing fixtures will vary on several factors, including the type of fixtures involved and the size of the building drain and water service. The department estimates that a plan submitter of these types of projects may incur fees of $200 to $300.
An assessment of the department's resources relating to the review of plumbing plans indicates that the department has the capacity to review more projects at this time. The department estimates that lowering of the threshold from 16 plumbing fixtures to 11 fixtures requiring plan review would result in an average annual revenue increase of $198,000.
The department anticipates that the workload associated with the proposed code change can be managed with current information technology and within current staff levels. In addition, the proposed rule do not increase or decrease the administrative and enforcement aspects at the state and local level.
State fiscal effect
Increase existing revenues.
Local government fiscal effect
None.
Fund sources affected
PRO.
Affected Ch.
20
appropriations
N/A.
Private sector fiscal effect
No significant effect.
Long-range fiscal implications
None are anticipated.
Agency Contact Person
Lynita Docken, Program Manager
Phone: (608) 785-9349
Notice of Hearing
Financial Institutions — Securities
NOTICE IS HEREBY GIVEN That pursuant to ss.
551.406 (5)
,
551.412 (5)
,
551.605 (1)
,
553.31 (1)
,
553.58 (1)
and
227.11 (2)
, Stats., the Department of Financial Institutions, Division of Securities will hold a public hearing to consider a rule revising Chapters
DFI-Sec 1
,
2
,
4
,
5
,
7
,
8
, and
32
, relating to minor revisions to securities law and franchise law administrative code sections.
Hearing Information
Date:
Monday, June 28, 2010
Time:
9:00 a.m.
Location:
Department of Financial Institutions
345 W. Washington Ave., 5th Floor
Madison, WI
Copies of Proposed Rule and Submittal of Written Comments
To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, or for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Department of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, tel. (608) 267-1705, e-mail mark.schlei@ wisconsin.gov. A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website,
www.wdfi.org
. Written comments must be received by the conclusion of the department's hearing regarding the proposed rule.
Analysis Prepared by the Department of Financial Institutions, Division of Securities
Statute interpreted
Statutory authority
Related statute or rule
None.
Explanation of agency authority
Pursuant to chs.
551
and
553
, Stats., the division regulates securities and franchise investment.
Summary of proposed rule
The objective of the rule is to repeal and recreate s.
DFI-Sec 1.02 (7)
, create s.
DFI-Sec 1.02 (8)
, amend s.
DFI-Sec 1.02 (14) (intro)
and
(c)
, amend ss.
DFI-Sec 2.02 (5) (d) 1.
,
(9) (c)
, and
2.028 (intro.)
, repeal s.
DFI-Sec 4.01 (4) (g)
, create s.
DFI-Sec 4.04 (7) (d)
, create ss.
DFI-Sec 5.01 (2) (f) 3.
,
5.04 (5) (d)
, and
5.06 (25)
, repeal and recreate ss.
DFI-Sec 5.01 (4) (a)
,
5.10
, and
5.13 (2)
, amend s.
DFI-Sec 5.04 (6) (b)
, repeal s.
DFI-Sec 5.05 (8) (i)
, amend s.
DFI-Sec 7.01 (3) (a)
, repeal s.
DFI-Sec 8.03
(note), and amend s.
DFI-Sec 32.07 (1)
, relating to minor revisions to securities law and franchise law administrative code sections.
The purpose of the rule is as follows:
Section 1: The branch office definition for broker-dealers has been harmonized with FINRA and other state regulators for many years. However, with the change in the Uniform Securities Act in 2009, the branch office definition in the rule was changed to refer to a slightly different statutory definition of "place of business." The statutory definition works for investment advisers but not broker-dealers, hence the change in this rule.
Section 2: This is a new definition to accompany the solicitor rules proposed for s.
DFI-Sec 5.06 (25)
based on language developed by the NASAA IA Regulatory Policy and Review Project Group.
Section 3: These changes clarify that the definition applies to investment advisers as well as investment adviser representatives and the nature of the solicitations made by third party solicitors.
Section 4. This amendment changes the terminology used in the current rule (which limits applicability of its coverage solely to limited partnerships) by substituting the term "entity" to thereby have the rule apply to any type of business organization.
Section 5: Incident to the Division's 2008 rules revision to coordinate with the adoption of the new Wisconsin Securities Law effective January 1, 2009, current rule DFI-Sec 2.02 (9) (c) inadvertently cross-referenced statute section 551.102 (11) rather than the proper corresponding statute in section 551.202 (13) [which specifically refers to "accredited investors," whereas section 551.102 (11) does not]. This amendment corrects that cross-referencing error.
Section 6: This amendment would limit use of this registration exemption to sales of equity securities by Wisconsin-based entities meeting the exemption's requirements. This exemption provision was originally created in 1986 for use by early-stage Wisconsin businesses to raise risk capital for its operations. As such, the exemption's original language was specifically limited to sales of common stock of the business (which don't obligate a business to redeem/payback the invested funds). Debt securities — which require payback to investors — could not be sold under the original language of this exemption. The original language of the exemption restricting its use to sales of common stock was changed in 1991 to read "securities," thus enabling the exemption to be used for sales of debt as well as equity securities Subsequently, some filings have been made by Wisconsin businesses for the purpose of selling their debt securities, including sales by a Wisconsin finance company of several million dollars of its Notes that currently are in default, and the company is in bankruptcy. To restore the exemption's use back to its original purpose of enabling Wisconsin businesses to raise risk capital — not capital from debt securities requiring repayment — the language of the preamble is changed to permit only sales of equity securities.
Section 7: In a FINRA rule change comment published as Notice 09-70, FINRA recommended the repeal of the S47 Japan Module of the General Securities Representative examination. However, FINRA indicated that the examination was never actually implemented and therefore is not an available examination anyone can take in lieu of the Series 7 exam.
Section 8: This new section clarifies that a notice of the opening of a branch office is not complete and therefore, not deemed "filed" until all fees, including any applicable late filing fees, are received. This parallels the fee payment component in the broker-dealer application rule in s.
DFI-Sec 4.01 (2) (b)
and the agent rule in s.
DFI-Sec 4.01 (2) (c)
.
Section 9: Section
DFI-Sec 4.01 (6)
currently provides the same review authority as s.
DFI-Sec 5.01 (2) (f)
except for the ability to perform a pre-registration examination of the adviser's records. This provision was inadvertently left out of the investment adviser rules.
Section 10: This amendment clarifies that the Series 65 and 66 exams referred to are the post-1999 version as specified in subd. 2. It also adds clarification that if the applicant was registered as an agent of a broker-dealer within two years of the application and the approval of that registration was based on passage of the Series 7 and 66 exams, those exams would still be considered active for purposes of meeting the exam requirement in subd. 3.
Section 11: This new section clarifies that a notice of the opening of a branch office is not complete and therefore, not deemed "filed" until all fees, including any applicable late filing fees, are received. This parallels the fee payment component in the investment adviser application rule in s.
DFI-Sec 5.01 (2) (a)
and the investment adviser representative rule in s.
DFI-Sec 5.01 (2) (b)
.
Section 12: Because applications are effective 30 days after filing, a renewal for January 1 effectiveness must be filed by December 1
st
. The date of November 30
th
is incorrect.
Section 13: This provision was instituted to require all investment advisers to deliver updated disclosure documents to clients by January 1, 2002 to comply with changes to the law at that time. This subsection has met its sunset date and is no long applicable.
Section 14: This section specifies what activity constitutes solicitation on behalf of an investment adviser and parallels the disclosure and agreement requirements found in U.S. Securities & Exchange Commission rule 206(4)-3 under the Investment Advisers Act of 1940 but with much more clarity and is based on language developed by the NASAA IA Regulatory Policy and Review Project Group.
Section 15: The Division currently requires only the ADV Part 1 to be filed electronically. This rule change will require advisers to file their initial and updated Form ADV Part II electronically via the Investment Adviser Registration Depository rather than in paper. Sub. 1 is the general requirement to file both parts of the form via the Investment Adviser Registration Depository and sub. (3) mandates existing registrants to have their Part II filed electronically by July 1, 2011. The software is available for free to convert their Part II disclosure document for electronic filing. Because this is the public disclosure portion of the application, it is in the interest of investors in Wisconsin to be able to review this document via the Investment Adviser Public Disclosure website. Requiring all advisers to make such filings will automatically add them to the public disclosure website. It will also relieve Division staff from processing paper applications, especially since all application materials are now retained by the Division in electronic format only.
Section 16: This rule changes the exemption provision for investment adviser solicitors following an exemption developed by the NASAA IA Regulatory Policy and Review Project Group. This exemption is based on "impersonal investment advice" and eliminates the de minimis exemption that was unique to Wisconsin and in effect permitted an unlimited total number of solicitations so long as no more than 9 per year were for any one adviser.
Section 17: Corrects a statutory citation.
Section 18: This amendment deletes the Note at the end of rule DFI-Sec 8.03 (which deals with appearances and defaults before the Division of Securities) because the 2003
Krahenbuhl
case cited in the Note has been superseded by Supreme Court Rule 40.05 (effective January 1, 2009) which establishes new criteria/requirements regarding the ability of non-Wisconsin attorneys to represent clients in contested case proceedings before Wisconsin state agencies.
Section 19: This rule contains the following amendments: (1) specifies that the application to amend should use the Uniform Franchise Registration Application Form (Form A); and (2) changes the franchise statute cross-referenced in the rule to be section
553.31 (1)
, Stats., which is the statute specifically dealing with amendments.
Comparison with federal regulations
There are no newly-developed or proposed federal regulations addressed by this rule. However, Wisconsin Securities Law and rules are generally coordinated with corresponding federal requirements, pursuant to s.
551.615
, Stats.
Comparison with rules in adjacent states
These rule chapters reflect the 2002 Uniform Securities Act which Iowa and Minnesota have adopted and written rules; Illinois and Michigan have not.
Summary of factual data and analytical methodologies
The division applied its own experience in its regulation of securities generally for the minor clarifications, corrections, revisions and other matters addressed by the rule.
Analysis and supporting documentation used to determine effect on small business
The rule makes minor clarifications, corrections and revisions for conformity with existing statutes; imposes no additional substantive requirements; and reduces the same.
Small Business Impact
This proposed rule will have no adverse impact on small businesses.
Fiscal Estimate
The rule places no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Agency Contact Information
For questions regarding the agency's internal processing of the proposed rule, contact:
Mark Schlei, Deputy General Counsel
Dept. of Financial Institutions, Office of the Secretary
P.O. Box 8861, Madison, WI 53708-8861
Phone: (608) 267-1705
Email: mark.schlei@ wisconsin.gov.
For substantive questions on the rule, contact:
Randall Schumann, Attorney
Dept. of Financial Institutions, Division of Securities
P.O. Box 1768, Madison, WI 53701-1768
Phone: (608) 266-3414
Notice of Hearings
Natural Resources
Environmental Protection—General, Chs. NR 100—
Environmental Protection—Water Supply, Chs. NR 800—
NOTICE IS HEREBY GIVEN That pursuant to ss.
227.11 (2) (a)
and
281.346 (3)
,
(4) (g)
,
(8)
and
(12)
, and
281.35 (10) (b)
, Stats., the Department of Natural Resources will hold public hearings on revisions to Chapter
NR 142
, Wis. Adm. Code, and the creation of Wis. Adm. Code Chapter
NR 850
Water Use Fees, Chapter
NR 852
Water Conservation and Water Use Efficiency, and Chapter
NR 856
Water Use Registration and Reporting, relating to implementation of the Great Lakes Compact and associated water use regulations.
Hearing Information
The hearings will be held on:
June 28, 2010, Monday, 6:00 p.m.
Ramada Plaza Terrace 1 & 2
6331 South 13
th
Street
Milwaukee, WI
June 29, 2010, Tuesday, 6:00 p.m.
Concurrent sessions will be held at the following
two
locations:
June 30, 2010,
Wednesday, 6:00 p.m.
Concurrent sessions will be held at the following
two
locations:
Pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call James McLimans at (608) 266-2726 with specific information on your request at least 10 days before the date of the scheduled hearing.
Copies of Proposed Rules and Submittal of Written Comments
The order in which the three rule proposals will be considered will be decided at the time of hearing. The proposed rules and supporting documents, including the fiscal estimates, may be viewed and downloaded and comments electronically submitted at the following Internet site:
http://adminrules.wisconsin.gov
. (Search this Web site using the Natural Resources Board Order Nos. DG-23-10 (NR 850 Water Use Fees), DG-24-10 (Water Conservation and Water Use Efficiency), and DG-25-10 (NR 856 Water Use Registration and Reporting).
Written comments on the proposed rules may be submitted via U.S. mail to Ms. Kristy Rogers, Bureau of Drinking Water and Groundwater, P.O. Box 7921, Madison, WI 53707 or by e-mail to
Kristy.Rogers@wisconsin.gov
. Comments may be submitted until
July 7, 2010
.
Written comments whether submitted electronically or by mail will have the same weight and effect as oral statements presented at the public hearings. If you do not have Internet access, a personal copy of the proposed rule and supporting documents may be obtained from Kristy Rogers, Bureau of Drinking Water and Groundwater, P.O. Box 7921, Madison, WI 53707 or by calling (608) 266-9254.
Analysis Prepared by Department of Natural Resources
CR 10-061
, DNR # DG-23-10
NR 850 — Water Use Fees
Plain language analysis
The proposal contained in this order repeals a provision of an existing rule that provided authority to assess water withdrawal fees on persons making withdrawals from the waters of the state in amounts averaging 100,000 gallons per day or more in any 30-day period. Those fees ranged from $35 to $500 dollars depending on the amount of the withdrawal. However, the fee program and the associated registration program associated with it were not implemented by the Department.
Under the provisions of s.
281.346 (12)
, as created in
2009 Wisconsin Act 28
, beginning in 2011, any person with a water supply system anywhere in the state with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period must pay to the Department an annual fee of $125. This rule clarifies that the annual $125 fee will cover all water supply systems on one property or a single public water supply. Section
281.346 (12)(c)
further directs the Department to promulgate a rule specifying an additional annual fee for persons who withdraw more than 50,000,000 gallons per year from the waters of the Great Lakes basin—that is, from surface water or groundwater within the land area of the state draining to Lakes Michigan or Superior, or from those lakes. The proposed fee would increase per 50 million gallon increment as shown in the following table:
Great Lakes Basin-Specific Fee for
Withdrawals > 50 MGY
|
Amount Withdrawn
|
Fee Per Million Gallons
|
50 MGY to 100 MGY
|
$1.50
|
100 MGY to 150 MGY
|
$2.00
|
150 MGY to 200 MGY
|
$2.50
|
200 MGY to 250 MGY
|
$3.00
|
250 MGY to 300 MGY
|
$3.50
|
300 MGY to 350 MGY
|
$4.00
|
350 MGY to 400 MGY
|
$4.50
|
400 MGY to 450 MGY
|
$5.00
|
450 MGY to 500 MGY
|
$5.50
|
500 MGY +
|
$6.00
|
The fee would not exceed $9,500 annually for withdrawals from a water supply system on a contiguous property or a public water system. The fees specified in this rule will be assessed on a calendar year basis and will be due to the Department by June 30
th
of the following calendar year.
Comparison with federal regulations
There are no comparable federal regulations pertaining to fees for water withdrawals.
Comparison with rules in adjacent states
The following table compares water withdrawal fees in adjacent states.
Water Withdrawal Fee Comparison
|
Wisconsin
|
Illinois
|
Iowa
|
Michigan
|
Minnesota
|
$125 statutory fee—statewide — for water supply systems with the capacity to withdraw an average of 100,000 gallons-per-day or more in any 30-day period.
Proposed additional annual fee for Great Lakes Basin withdrawals exceeding 50 million gallons per year. The proposed fee would be assessed at an inclining rate in tiers of 50 million gallons as follows:
(50 – 100) $1.50/mil.
(100 – 150) $2/mil.
(150 – 200) $2.50/mil.
(200 – 250) $3/mil.
(250 – 300) $3.50/mil.
(300 – 350) $4 /mil.
(350 – 400) $4.50/mil.
(400 – 450) $5/mil.
(450 – 500) $5.50/mil.
(Above 500) $6/mil.
The fee would not exceed $9,500 annually for withdrawals from one property or public water system.
|
No annual water use fee.
|
Iowa charges an annual water use fee to each water use permittee designed to generate $500,000 each year. Permits are required for persons that withdraw at least 25,000 gallons in a 24-hour period during a calendar year; and the same fee is charged to each permittee.
For 2009, the annual fee was $135 for each permittee.
|
$200 annual reporting fee for withdrawals exceeding 100,000 gallons per day averaged over a consecutive 30-day period. (No annual fee for withdrawals for agricultural use.)
|
$140 minimum annual water use fee for withdrawals between 0 and 50 million
gallons.
Marginal fee rates for withdrawals exceeding 50 million gallons per year as follows:
(50 – 100) $3.50/mil.
(100 – 150) $4/mil.
(150 – 200) $4.50/mil.
(200 – 250) $5/mil.
(250 – 300) $5.50/mil.
(300 – 350) $6/mil.
(350 – 400) $6.50/mil.
(400 – 450) $7/mil.
(450 – 500) $7.50/mil.
(Above 500) $8/mil.
Maximum Annual water use fees:
$750 for any single agric. Irrigation permit;
$50,000 for an entity w/3 or fewer permits;
$75,000 for an entity w/4 to 5 permits;
$250,000 for an entity with > 5 permits;
$250,000 for a city of the first class;
$10,000 for a municipality that furnishes electric service and steam for home heating.
|
Summary of factual data and analytical methodologies
Based on available data and assumptions, the Department projects that the $125 annual fee will apply to approximately 4900 properties and generate just over $600,000 annually; and the proposed fee on withdrawals exceeding 50 million gallons per year will apply to approximately 200 to 250 properties in the Great Lakes basin and generate approximately $390,000 annually.
Analysis and supporting documentation used to determine rule's effect on small business
The Department lacks complete data on the number and nature of all operations withdrawing water above the threshold amount of 50 million gallons per year. However, based on the withdrawal data that does exist (e.g. high capacity well pumpage data), comparatively few small businesses will be affected by the rule.
Small Business Impact
The $125 annual fee will affect hundreds of small business throughout the state. However, the fee imposed on withdrawals exceeding 50 million gallons per year is expected to primarily affect public water systems, power companies, and large industrial operations in water-intensive industries. The rule will affect an unknown number of small businesses that withdraw more than 50 million gallons of water per year from waters within the Great Lakes basin; however the Department estimates that there are relatively few small businesses that withdraw water at levels exceeding the threshold amounts.
Fiscal Estimate
Rule summary
Section
281.346 (12) (c)
, directs the Department to promulgate a rule specifying an additional annual fee for persons who withdraw more than 50 million gallons per year (MGY) from the waters of the Great Lakes basin—that is, from surface water or groundwater within the land area of the state draining to Lakes Michigan or Superior, or from those lakes. The proposed fee would be assessed on marginal increments of withdrawals over 50 million gallons per year starting @ $1.50 per million gallons over 50 million, and would increase $0.50 per million gallons for each 50 million gallon increment as follows:
•
For amounts withdrawn between 50 MGY to 100 MGY
$1.50/million gallons withdrawn
•
For amounts withdrawn between 100 MGY to 150 MGY
$2.00/million gallons withdrawn
•
For amounts withdrawn between 150 MGY to 200 MGY
$2.50/million gallons withdrawn
•
For amounts withdrawn between 200 MGY to 250 MGY
$3.00/million gallons withdrawn
•
For amounts withdrawn between 250 MGY to 300 MGY
$3.50/million gallons withdrawn
•
For amounts withdrawn between 300 MGY to 350 MGY
$4.00/million gallons withdrawn
•
For amounts withdrawn between 350 MGY to 400 MGY
$4.50/million gallons withdrawn
•
For amounts withdrawn between 400 MGY to 450 MGY
$5.00/million gallons withdrawn
•
For amounts withdrawn between 450 MGY to 500 MGY
$5.50/million gallons withdrawn
•
For amounts withdrawn in excess of 500 MGY
$6.00/million gallons withdrawn
The fee would not exceed $9,500 annually for withdrawals from a water supply system on a contiguous property or a public water system. The fee would take effect in 2011. Fee revenue will be deposited in a program revenue appropriation supporting Great Lakes Compact implementation. The Department anticipates that between 200 and 300 persons will pay the fee annually.
State fiscal impact
Revenues that will be generated as a result of the annual withdrawal fee are the result of the fee provisions enacted in to law in
2009 Wisconsin Act 28
. The Department assumes that the statutory statewide base fee of $125 on persons with water supply systems with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period will be imposed on approximately 4900 persons and will generate approximately $612,500 annually. (Revenue from this base fee is not included on the attached fiscal estimate worksheet.)
Based on actual withdrawal data from public water supply systems and high capacity well owners, and assumptions related to surface water withdrawals, the Department expects that the fee will generate between $38000 and $400,000 annually. In addition, state-owned facilities (e.g., state fish hatcheries) that withdraw over 50 million gallons per year in the Great Lakes Basin would have to pay the fee. The Department lacks accurate data on total amounts of water withdrawn from state-owned facilities, therefore costs to the state are indeterminate at this time.
Local government fiscal impact
Based on 2009 data, there are approximately 180 public water systems in the Great Lakes Basin. Of those 180 systems, approximately 90 systems withdraw in excess of 50 million gallons per year and will be affected by this rule--e.g., systems withdrawing 100 million gallons of water per year will pay approximately $75 under the rule; systems withdrawing 1 billion gallons of water per year will pay approximately $4,600; and systems withdrawing 2.3 billion gallons of water per year will pay $9,500 per year. The Department anticipates that approximately 9 public water systems in the Great Lakes basin will pay the maximum $9,500 fee, 60 public water systems will pay a fee under $1,000, and more than 90 public water systems in the Great Lakes basin would pay no additional fee over the $125 statutory base fee.
Private sector fiscal impact
The Department lacks complete data on the number and nature of all operations withdrawing water above the threshold amount of 50 million gallons per year. However, based on the withdrawal data that does exist (e.g. high capacity well pumpage data), comparatively few small businesses will be affected by the rule.
Summary for state fiscal effect
Increase existing revenues.
Increase costs. May be possible to absorb within agency's budget.
Summary for local government fiscal effect
Increase costs — Mandatory.
Types of local government units affected
Towns, Villages, Cities, Counties, Water Utilities, School Districts, WTCS Districts.
Fund sources affected
PRO.
Affected Ch.
20
appropriations
Long-range fiscal implications
None are expected.
Agency Contact Person
Eric Ebersberger, Water Use Section
Room DG/5, Wis. Dept. of Natural Resources
Bureau of Drinking Water & Groundwater
Phone: (608) 266-9254
___________________________________________
CR 10-060
, DNR # DG-24-10
NR 852 — Water Conservation and Water Use Efficiency
Plain language analysis
This board order creates a new rule that clarifies and further defines new statutory requirements for water conservation and water use efficiency for withdrawals of waters of the state within the Great Lakes Basin, diversions of water from the Great Lakes Basin, and water withdrawals statewide that require a water loss approval. The new law implements the following:
1.
Specifies mandatory water conservation and efficiency measures for waters of the Great Lakes Basin and withdrawals statewide that require a water loss approval.
2.
Promotes voluntary statewide water conservation through the identification of water conservation and efficiency measures.
3.
Guides other department regulatory, planning, resource management, liaison and financial aid determinations.
Persons subject to this chapter are categorized into one of 3 levels:
1.
Tier 1 includes new and increased withdrawals in the Great Lakes Basin that average 100,000 gallons per day or more in any 30-day period but that do not equal at least 1,000,000 gallons per day for any 30 consecutive days.
2.
Tier 2 includes new and increased withdrawals in the Great Lakes Basin that equal 1,000,000 gallons per day or more for any 30 consecutive days.
3.
Tier 3 includes new and increased diversions in a community or county that straddles the sub-continental divide and new and increased withdrawals statewide that will result in a water loss averaging more than 2,000,000 gallons per day in any 30-day period.
This tiered approach is being used to differentiate between the requirements for different types and levels of regulated activities. The level of water conservation and efficiency requirements are increased from Tier 1, to Tier 2, to Tier 3.
In addition to completing a Water Conservation Plan, there are four mandatory water conservation and efficiency measures (CEMs) for all persons for whom water conservation and efficiency requirements are mandatory under this chapter. These CEMs have been determined to be cost-effective, environmentally sound and economically feasible for all water use sectors. Implementation of additional CEMs are required for Tier 2 and Tier 3 only.
The rule sets forth definitions, sector specific water conservation and efficiency measures, elements of a water conservation plan, procedures for conducting an environmentally sound and economically feasible analysis, process for approval and reporting, and process for enforcement.
Comparison with federal regulations
There are no comparable federal regulations pertaining to water conservation and water use efficiency. However, in passing the Great Lakes – St. Lawrence River Basin Water Resources Compact (Compact), each of the Great Lakes states have similar requirements to establish a water conservation and efficiency program that is consistent with the goals and objectives identified by the Great Lakes Compact Council.
Summary of factual data and analytical methodologies
Published scientific literature, industry manuals, information from other states, consultation with the Department of Commerce and Public Service Commission, and input from an advisory committee were used as the basis for developing the water conservation plan requirements and required water conservation and efficiency measures.
Analysis and supporting documentation used to determine rule's effect on small business
Any person who diverts any amount of water, has a new or increased withdrawal averaging 100,000 gallons per day or more in any 30-day period from the Great Lakes Basin, or a withdrawal with a water loss over 2,000,000 gallons per day must complete a water conservation plan and implement water conservation and efficiency measures. To comply, small businesses follow the same requirements as other persons who withdraw water in the same quantity. The water conservation and water use efficiency requirements are clearly identified in this rule and do not include requirements to retrofit existing equipment. Water conservation and efficiency measures that are not environmentally sound or economically feasible do not need to be implemented.
Comparison with rules in adjacent states
The following table compares regulatory requirements for water conservation and efficiency in adjacent states:
Water Conservation and Water Use Efficiency Comparison
|
Wisconsin
|
Illinois
|
Iowa
|
Michigan
|
Minnesota
|
Specifies mandatory water conservation and water use efficiency measures within user sectors for certain levels of new or increased withdrawals and diversions from waters of the Great Lakes Basin and for water withdrawals statewide that require a water loss approval.
Promotes voluntary statewide water conservation through the identification of water conservation and efficiency measures.
|
Specifies all water withdrawals over 100,000 gallons per day in the Great Lakes Basin to obtain a permit. Conservation practices within the user category are specified through permitting process. Requires permittees to submit a plan to reduce wasteful water and unaccounted for water by 8 percent. Requires permittees to submit an annual water use audit form.
|
Specifies all persons making a water
withdrawal of at
least 25,000 gallons per day to obtain a water use permit. Iowa statute provides for a water allocation (permit) system based on beneficial use preventing waste, unreasonable use
and unreasonable methods of use of water resources. Conservation is expected.
|
Specifies all persons making large quantity withdrawals averaging 100,000 gallons a day for 30-days to evaluate generic water conservation measures applicable to their sector for review and acceptance by the Department of Environmental Quality. Requires legislative review of the status and preparation and acceptance of water user sector conservation measures by April 1, 2010.
|
Specifies mandatory efficient use and conservation of water through permitting process for all water users withdrawing water at a rate of 10,000 gallons a day or a million gallons per year. Water conservation must be addressed in water supply plans required for public water systems serving more than 1000 people.
Requires mandatory conservation rate structures for all public water utilities located within the basin.
Specifies voluntary measures including information and education, retrofitting water fixtures and encouraging water reuse.
|
Small Business Impact
This rule will affect small businesses located in the Great Lakes Basin that supply their own water with water supply systems that actually withdraw water averaging 100,000 gallons per day or more in any 30-day period or have a new or increased withdrawal statewide that will result in a water loss averaging more than 2,000,000 gallons per day in any 30-day period. Water conservation and efficiency measures that are not environmentally sound or economically feasible do not need to be implemented. Small businesses that receive water from a public water supply will not be impacted by this rule.
Fiscal Estimate
Water conservation and water use efficiency rule summary
This new rule clarifies and further defines new statutory requirements for water conservation and water use efficiency for withdrawals of waters of the state within the Great Lakes Basin, diversions of water from the Great Lakes Basin, and water withdrawals statewide that require a water loss approval. The new law implements the following:
•
Specifies mandatory water conservation and efficiency measures for waters of the Great Lakes Basin and withdrawals statewide that require a water loss approval (i.e. withdrawals resulting in a water loss averaging more than 2,000,000 gallons per day in any 30-day period).
•
Promotes voluntary statewide water conservation through the identification of water conservation and efficiency measures.
•
Guides other Department regulatory, planning, resource management, liaison and financial aid determinations.
Persons subject to this chapter are categorized into one of 3 tiers:
•
Tier 1 includes new and increased withdrawals in the Great Lakes Basin that average 100,000 gallons per day or more in any 30-day period but that do not equal at least 1,000,000 gallons per day for any 30 consecutive days.
•
Tier 2 includes new and increased withdrawals in the Great Lakes Basin that equal 1,000,000 gallons per day or more for any 30 consecutive days.
•
Tier 3 includes new and increased diversions in a community or county that straddles the sub-continental divide and new and increased withdrawals statewide that will result in a water loss averaging more than 2,000,000 gallons per day in any 30-day period.
This tiered approach is being used to differentiate between the requirements for different types and levels of regulated activities. The level of water conservation and efficiency requirements are increased from Tier 1, to Tier 2, to Tier 3.
In addition to completing a Water Conservation Plan, there are four mandatory water conservation and efficiency measures (CEMs) for all persons for whom water conservation and efficiency requirements are mandatory under this chapter. These CEMs have been determined to be cost effective, environmentally sound and economically feasible for all water use sectors. Implementation of additional CEMs are required for Tier 2 and Tier 3 only.
The rule sets forth definitions, sector-specific water conservation and efficiency measures, elements of a water conservation plan, procedures for conducting an analysis of whether a conservation and efficiency measure is environmentally sound and economically feasible, a process for approval and reporting, and a process for enforcement.
State fiscal impact
All costs that the Department will incur are the result of the water conservation and efficiency requirements enacted in
2007 Wisconsin Act 227
.
The primary financial impact to the state will be the review of water conservation plans, which include documentation of the implementation of water conservation and efficiency measures This review will be done internally by a Water Supply Specialist-Advanced. Annually, an estimated 30 water withdrawers will be impacted by this rule. Additionally, there will be annual costs associated with outreach on the voluntary water conservation and efficiency program, which will be done internally by a Natural Resources Staff Specialist. There will be a one-time cost to develop tools for water users to conduct a economical feasibility analysis.
Additionally, state facilities with new or increased withdrawals in the Great Lakes basin will have to comply with this rule. For example, the state operates several fish hatcheries that may be financially impacted if they expand or a new hatchery is established and need a new or increased water withdrawal. However, the Department cannot reliably predict the number of state-owned facilities in the Great Lakes basin that will require a new or increased water withdrawal above the threshold levels, therefore the assumptions included for the state fiscal effect below do not include dollar amounts for fiscal impacts for state fish hatcheries or other state-owned facilities.
Annual State Fiscal Impact
•
Estimated number of persons annually subject to NR 852 = 30 water withdrawers
•
Hours for the Department to review and approve water conservation plans = 20 hrs x 30 plans = 600
•
Annual fiscal impact to the Department for water conservation plan review = $35/hr x 600 hours = $21,000
•
Full time equivalent (FTE) for water conservation plan review = 600 hrs / 1820 hrsFTE = 0.3 FTE
•
Annual fiscal impact to the Department for water conservation outreach = $35/hr x 420 hrs = $14,700
•
Full time equivalent (FTE) for water conservation outreach = 420 hrs / 1820 hrs/FTE = 0.2 FTE
•
TOTAL ANNUAL STATE FISCAL IMPACT = $35,700 or 0.50 FTE
One-Time State Fiscal Impact
•
Estimated number of hours to complete economically feasible analysis tools = 1040 hrs
•
Economically feasible analysis tool development (developed internally) = 1040 hrs/ 1820 hrs/FTE = 0.6 FTE
•
One-time state fiscal impact for tool development (developed internally) = $35/hr x 1040 hrs = $36,400
•
One-time state fiscal impact for tool development (contracted out) = $70/hr x 1040 hrs = $72,800
•
TOTAL ONE-TIME STATE FISCAL IMPACT = $109,200
Local government fiscal impact
The Department assumes that approximately 5 municipal water systems per year will apply for a new or increased withdrawal and will be required to complete a water conservation plan and implement water conservation and efficiency measures. The number of permittees may increase in the long term along with continued population growth and increased economic activity.
Water conservation and efficiency measures do not include retrofitting requirements, but rather, the required elements include planning and operational changes to achieve water savings. CEMs included in this rule are designed to be revenue neutral; planning costs incurred should be offset by capital and operational costs avoided. If an element is not economically feasible as determined by a prescribed analysis, the water system will not be required to implement it. The cost to the permittee will primarily be an up front cost to complete a water conservation plan and establish CEMs. In subsequent years, water savings can be achieved with minimal capital and operational costs.
Public water systems regulated by the Public Service Commission have the ability to recover conservation and efficiency related costs through rates charged to customers.
Annual Local Government Fiscal Impact
•
Number of hours for permittee to complete requirements = 160
•
Fiscal impact to each individual permittee = $50/hr x 160 = $8,000
•
Local government permittees affected = 15% of 30 = 5 water withdrawers
•
Total annual impact to local government sector = 5 x $8000 = $40,000
Private sector fiscal impact
The private sector will be impacted by this rule in 6 areas: (1) Privately owned "public" water supply systems; (2) Commercial and institutional businesses with their own water supply; (3) Dairy farm and livestock operations (including aquaculture) with their own water supply; (4) Agricultural irrigation operations with their own water supply; (5) Industrial operations on their own water supply; (6) Electric power production using water in their process; and (7) Other water users with their own water supply. It is estimated that the number of hours for a permittee to complete the water conservation plan and applicable water conservation and efficiency measures would be equivalent to the hours required of a public water system (local government) permittee (160 hours/permittee).
Annually, approximately 25 private sector water withdrawers are estimated to trigger a new or increased withdrawal and will be required to complete a water conservation plan and implement water conservation and efficiency measures. The number of permittees may increase in the long term along with continued population growth and increased economic activity.
Water conservation and efficiency measures do not include retrofitting requirements, but rather, the required elements include planning and operational changes to achieve water savings. CEMs included in this rule are designed to be revenue neutral; planning costs incurred should be offset by capital and operational costs avoided. If an element is not economically feasible as determined by a prescribed analysis, the water system will not be required to implement it. The cost to the permittee will primarily be an up front cost to complete a water conservation plan and establish CEMs. In subsequent years, water savings can be achieved with minimal capital and operational costs.
Annual Private Sector Fiscal Impact
•
Number of hours for permittee to complete requirements = 160 hours
•
Fiscal impact to each individual permittee = $50/hr x 160 = $8,000
•
Privately owned permittees affected = 85% of 30 = 25 water withdrawers
•
Total annual impact to private sector = 25 x $8000 = $200,000
Summary for state fiscal effect
Increase costs. May be possible to absorb within agency's budget.
Summary for local government fiscal effect
Increase costs — Mandatory.
Types of local government units affected
Towns, Villages, Cities, Counties, Water Utilities, School Districts, WTCS Districts.
Fund sources affected
PRO.
Affected Ch.
20
appropriations
Long-range fiscal implications
None are expected.
Agency Contact Person
Steven Elmore, Water Resources Management Specialist
Wis. Dept. of Natural Resources
Bureau of Drinking Water & Groundwater
Phone: (608) 264-9246
__________________________________________
CR 10-059
, DNR # DG-25-10
NR 856 — Water Use Registration and Reporting
Plain language analysis
This rule rescinds a portion of an existing rule related to registration of water withdrawals and creates a new rule that clarifies and further defines new statewide statutory requirements for withdrawals of waters of the state and diversions of water from the Great Lakes Basin. The new law requires the following:
1.
Registration for any person who has or proposes to have a water supply system with the capacity to withdraw 100,000 gallons per day or more in any 30-day period or who diverts water in any amount from the Great Lakes Basin.
2.
Annual reporting for any person who makes a withdrawal in excess of 100,000 gallons per day or more in any 30-day period or who diverts any amount from the Great Lakes Basin.
The rule sets forth definitions, procedures and information requirements for registrations, procedures for amending and terminating registrations, methods for measuring withdrawals, and procedures for annual reporting.
Comparison with federal regulations
There are no comparable federal regulations pertaining to water withdrawals. However, in passing the Great Lakes – St. Lawrence River Basin Water Resources Compact (Compact), each of the Great Lakes states now have similar regulations requiring the registration and permitting of certain levels of water withdrawals within the Great Lakes Basin.
Summary of factual data and analytical methodologies
Published scientific literature and manuals were used as the basis for developing the withdrawal measurement standards. Existing state statutes, department rules, and department procedures were used to guide the development of the registration and reporting process.
Analysis and supporting documentation used to determine rule's effect on small business
Any person with a water supply system with the capacity to make a withdrawal from the waters of the state of 100,000 gallons per day is required to register. In addition, any person who makes a withdrawal averaging 100,000 gallons per day or more in any 30-day period must also report their water withdrawals to the department annually. To comply, small businesses follow the same requirements as other persons who withdraw water. The registration and reporting requirements are straightforward and can be accomplished by most individuals with no specific professional background.
Comparison with rules in adjacent states
The following table compares regulatory requirements for water withdrawals in adjacent states.
|
Wisconsin
|
Illinois
|
Iowa
|
Michigan
|
Minnesota
|
Registration
|
Registration is required for persons with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period.
|
An allocation
permit is required for withdrawals from the Lake Michigan Basin.
|
Water use permits are required of any person or entity that withdraws at least 25,000 gallons
in a 24-hour period during any calendar year.
|
Registration is required for a new withdrawal averaging over 100,000 gallons per day in any 30-day period or an increase averaging over 100,000 gallons per day in any 30-day period beyond the baseline capacity of a withdrawal.
|
Water Use permits are required for withdrawals greater than or equal to 10,000 gallons per day
or 1 million
gallons per year from surface or groundwater.
|
Reporting
|
Monthly water withdrawal volumes are reported annually by March 1 for withdrawals averaging 100,000 gallons per day or more in any 30-day period.
|
Annual reporting is required for
all withdrawals from the Lake Michigan basin and statewide for withdrawals over 100,000 gallons per day.
|
Monthly water withdrawal volumes are reported by all water use permit holders annually by
January 31.
|
Monthly water withdrawal volumes are reported by all registrants annually by April 1.
|
Monthly water withdrawal
volumes are reported by all water use permit holders annually by February 15.
|
Small Business Impact
This rule will affect small businesses that supply their own water with water supply systems that have the capacity to withdraw over 100,000 gallons per day. Small businesses, like other entities that are affected by this rule, will have to determine the amount of water used on a monthly basis and report that water use annually. Small businesses that receive water solely from a public water supply will not be impacted by this rule. Specific standards will provide clarity and consistency in the registration and reporting process.
Pursuant to s.
227.114
, Stats., it is not anticipated that the proposed rules will have an economic impact on small businesses.
Environmental Impact
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150
, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
State fiscal impact
Annual Costs:
All costs that the Department will incur are the result of the registration and reporting requirements enacted in
2007 Wisconsin Act 227
.
Annual costs to the Department are expected to increase by an estimated $145,700 for salary, supplies, and related expenditures. This estimate is based upon the following expected costs associated with administering the new requirements:
1) Salary and fringe for 2.0 FTEs classified as Water Supply Specialists at an estimated cost of approximately $136,200 [2,080 hours x $32.73/hour (salary and fringe) x 2 FTE]. The FTEs will provide compliance assistance, develop information and education materials, review and accept registration submittals, review reporting information, prepare summary reports and analysis, investigate complaints and non-compliance with the rules, and maintain the data system.
2) Travel and supply costs of $6,000 ($3,000 x 2 FTE). The travel will include field investigations of complaints and non-compliance and travel associated with providing training and customer service to the regulated community.
3) Database/IT costs of $3,500 (50 hours x $70/hour) for an outside contractor to maintain the data system and online registration and reporting system.
One-Time Costs:
One time costs are estimated to be $128,650. These costs are for developing a database and online system to accept registration and reporting information. This includes computer contractor costs of $44,900 (1 IS contractor @ 350 hours x $70/hour and 1 GIS contractor @ 300 hours x $68/hour) and DNR staff time at a cost of $83,750 (1,675 hours x $50/hour average salary and fringe). DNR staff time is required from a GIS Coordinator, IS Systems Developer, and Water Supply Specialist-Advanced.
Local government fiscal impact
The new requirements will impact local units of government that have or propose a water supply system that withdraws water at the level regulated by the new rule. The fiscal impact is expected to be minimal, since measuring and reporting water withdrawal information is already required by other Department programs. The additional reporting requirement of the new rule may be accomplished by the withdrawer and is expected to take, on average, less than 2 hours per year. Department staff are committed to eliminating duplicative reporting requirements with the development of new data systems.
Private sector fiscal impact
A. Existing Withdrawers
The fiscal impact on persons in the private sector that have existing withdrawals regulated by the new rule is expected to be minimal. Most existing withdrawers are already required to measure and report withdrawal information to the Department. The additional reporting requirement of the new rule may be accomplished by the withdrawer and is expected to take, on average, less than 2 hours per year. Department staff are committed to eliminating duplicative reporting requirements with the development of new data systems.
For existing withdrawers that are not currently required to measure and report their withdrawals, the fiscal impact is expected to be the same as for new withdrawers, as explained below.
B. New Withdrawers
The fiscal impact on persons in the private sector that are starting new withdrawals is not expected to be significant. Initial costs include withdrawal measurement and registration. The rule provides options for measuring withdrawals that vary in cost. There are options that may be completed by the withdrawer at little to no cost. Other options require the purchase of a meter and some options--for example, measuring flow through a weir, may require hiring a professional consultant. Standard meters range in cost from $400 to $5,000. Consultant costs vary and may range between $500 and $2,000.
Completing the initial registration is expected to take, on average, less than 2 hours and may be completed by the withdrawer. Withdrawers that are hiring consultants or contractors, such as well drillers, as part of their project may choose to have them also complete the registration.
Annual costs are expected to be minimal. Documenting the volumes of withdrawal by month and then reporting the information annually to the Department is expected to take, on average, less than 2 hours per year and may be completed by the withdrawer.
Summary for state fiscal effect
Increase costs. May be possible to absorb within agency's budget.
Types of local government units affected
Towns, Villages, Cities, Counties, Water Utilities, School Districts, WTCS Districts.
Fund sources affected
PRO.
Affected Ch.
20
appropriations
Long-range fiscal implications
None are expected.
Agency Contact Person
Kristy Rogers, Water Supply Specialist
Wis. Dept. of Natural Resources
Bureau of Drinking Water & Groundwater
Phone: (608) 266-9254
Notice of Hearing
Public Instruction
NOTICE IS HEREBY GIVEN That pursuant to ss.
115.001 (11)
and
227.11 (2) (a)
, Stats., the Department of Public Instruction will hold a public hearing as follows to consider proposed permanent rules amending Chapter
PI 34
, relating to school nurse certification. The hearing will be held as follows:
Hearing Information
Date:
July 30, 2010
Time:
1:00 - 3:30 p.m.
Location:
Madison
GEF 3 Building
125 South Webster Street
Room 041
The hearing site is fully accessible to people with disabilities. If you require reasonable accommodation to access any meeting, please call Douglas White, Director, Student Services/Prevention and Wellness at
douglas.white@ dpi.wi.gov
, (608) 266-5198 or leave a message with the Teletypewriter (TTY) at (608) 267-2427 at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.
Copies of Proposed Rule and Submittal of Written Comments
Lori Slauson, Administrative Rules and Federal Grants Coordinator
Department of Public Instruction
125 South Webster Street
P.O. Box 7841
Madison, WI 53707
Written comments on the proposed rules received by Ms. Slauson at the above mail or email address no later than
August 4, 2010
, will be given the same consideration as testimony presented at the hearing.
Analysis Prepared by Department of Public Instruction
Statute interpreted
Statutory authority
Explanation of agency authority
Section
115.001 (11)
, Stats., requires the department to prescribe the qualifications for school nurses by rule.
Section
227.11 (2) (a)
, Stats., gives an agency rule-making authority to interpret the provisions of any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
N/A.
Plain language analysis
2009 Wisconsin Act 160
requires the department to prescribe the qualifications for school nurses by rule. To meet the requirements under the Act, the department is modifying Chapter
PI 34
, relating to Teacher Education Program Approval and Licenses, by creating a definition of "school nurse" under s.
PI 34.01 (52m)
and by modifying the school nurse licensing information under s.
PI 34.31 (2)
.
The DPI school nurse license which requires completion of a school nurse practicum and an institutional endorsement, is still an optional license and is not required for a nurse to work in a school. In the past, a school nurse only had to hold a license as a registered nurse under the Department of Regulation and Licensing. The rule will require a school nurse to hold a bachelor's degree as well.
An individual employed by, or under contract with, a school board, a CESA, a CCDEB, or charter school as a school nurse on January 1, 2011, shall be considered a school nurse, regardless of whether or not that individual holds a bachelor's degree.
To coincide with the Act's effective date, the rule will become effective January 1, 2011.
Comparison with federal regulations
N/A.
Comparison with rules in adjacent states
Iowa:
Iowa does not have rules relating to the qualification of school nurses.
Illinois and Minnesota:
Illinois and Minnesota require a school nurse to be a registered professional nurse with a bachelor's degree.
Michigan:
Michigan requires that a professional school nurse be a registered professional nurse with a bachelor's degree. Michigan also offers a standard school nurse certificate requiring the applicant to be a registered nurse.
Summary of factual data and analytical methodologies
2009 Wisconsin Act 160
clarifies that a nurse may be employed by a school district without being "certified" by the department but rather "meets the qualifications prescribed by the department." The DPI school nurse license under s.
PI 34.31 (2)
requires the applicant to have, in part, a school nursing practicum and an institutional endorsement. This DPI license is optional and is not required for a nurse to work in a school. The Act removes the department's certification requirement and replaces it with the qualifications for school nurses prescribed by the department in rule. The qualifications specified in this rule will better reflect current practice without reducing the qualifications of the state's school nurses.
Analysis and supporting documents used to determine effect on small business
N/A.
Anticipated costs incurred by private sector
N/A.
Small Business Impact
The proposed rules are not anticipated to have a fiscal effect on small businesses as defined under s.
227.114 (1) (a)
, Stats.
Fiscal Estimate
The proposed rules require a nurse to hold a bachelor's degree in addition to a license issued by the Department of Regulation and Licensing in order to become a school nurse. The rules allow a nurse that was employed or under contract as a school nurse in a school board, CESA, CCDEB or charter school established under s.
118.40 (2r)
Stats., on or before the effective date of the rule to be considered a school nurse.
Any fiscal effect to local school districts is indeterminate. A school nurse with a bachelor's degree may command more money for his or her salary. However, it is unknown how many school nurses will be hired under this new requirement as the grandfathering provision allows school nurses currently employed without a bachelor's degree to remain employed.
The proposed rules will make it easier for school districts to receive partial state aid reimbursement for school nurses under s.
115.88 (1m) (a)
, Stats., special education aid, because a school nurse must meet the qualifications in this rule rather than meet DPI certification requirements which require a practicum and an institutional endorsement in addition to a bachelor's degree. (Prior law required school nurses to be certified by DPI to receive special education aid.)
These proposed rules may result in a redistribution of state special education aid but will not change the total amount of aid distributed.
The proposed rules will have no significant economic impact on small businesses, as defined in s.
227.114 (1) (a)
, Stats.
Agency Contact Person
Douglas White, Director
Student Services/Prevention and Wellness
Phone: (608) 266-5198
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss.
85.16 (1)
,
227.11
,
343.02
and
344.66
, Stats., the Department of Transportation will hold a public hearing to consider emergency rules to create section
Trans 100.25
, Wis. Adm. Code, relating to mandatory insurance exemptions.
Hearing Information
Date:
June 24, 2010
Time:
10:00 a.m.
Location:
Hill Farms State Transportation Bldg.
Room 144-B
4802 Sheboygan Avenue
Madison, WI
This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call Reggie Paradowski at (608) 264-7002 with specific information on your request at least 10 days before the date of the scheduled hearing. Accommodations such as interpreters, English translators, or materials in alternative format will, to the fullest extent possible, be made available upon a request from a person with a disability to accommodate your needs.
Copies of Emergency Rule
A copy of the rule may be obtained upon request from Reggie Paradowski, Section Chief, Division of Motor Vehicles, Driver Information Section, Room 301, P. O. Box 7983, Madison, WI 53707-7983. You may also contact Mr. Paradowski via e-mail:
reginald.paradowski@wisconsin. gov
, or by calling (608) 264-7002
to obtain copies of the emergency rule. Copies will also be available at the hearing.
Analysis Prepared by the Department of Transportation
Statutes interpreted
Statutory authority
Explanation of agency authority
The Department is charged with administering the safety responsibility, damage judgment and mandatory insurance laws contained in Chapter
344
, Stats. This rule making deals with exceptions to the mandatory insurance provisions of Subchapter
VI
to Chapter
344
, Stats.
Related statute or rule
Plain language analysis
The purpose of this emergency rule making is to set interim standards for filings made in lieu of insurance with the Department pursuant to s.
344.63
, Stats., as created by
2009 Wis. Act 28
.
One deposit accepted in lieu of insurance under s.
344.63
, Stats., is $60,000 cash. The $60,000 amount is set in the statutes and is far less than the minimum insurance required under the law. U.S. currency, cashiers and certified checks, money orders, bank checks, and attorney trust fund checks may be accepted as a cash deposit by the Department. In addition to depositing cash, the depositor must prove no judgments are outstanding against the depositor in the depositor's county of residence. s.
344.37(1)
, Stats.
A second deposit accepted by the Department is a bond. There are two types of bonds. First, a bond issued by a surety company for the minimum liability coverage amounts required by law (currently $15,000 property, $50,000 personal injury to one person, $100,000 personal injury of multiple persons). The bond will need to be in a form approved by the Department. The other form of bond permitted under the statutes is a judicial bond. If requested, judges will have to approve or disapprove of applications to create a bond secured by $330,000 in real estate (twice the amount of the bond).
The third mechanism available under the statute is posting securities. Securities are the most problematic from an administrative and enforcement standpoint. The value of securities can vary greatly over time. The Department cannot and will not know the value of securities after deposit. The burden will be on the depositor to be able to prove the value of any securities deposited with the Department to police when asked. Deposits of securities must be accompanied by an opinion of counsel verifying that the securities meet the statutory requirements for use in lieu of insurance. The depositor will need to provide an affidavit as to the value of the securities at the time of deposit and will need to pledge the securities in a manner that permits the Department to sell them in order to use the proceeds to satisfy damages resulting from accidents. The share or bond certificates will need to be physically deposited with the Department.
Comparison with federal regulations
There are no existing or proposed federal regulations on this issue.
Comparison with rules in adjacent states
Michigan:
All motorists must carry liability coverage also referred to as "Michigan no fault insurance." Insurance certificate must be kept in vehicle at all times when operating vehicle.
Minnesota:
Drivers must provide proof of insurance upon request by a peace officer.
Illinois:
All motor vehicles operated in Illinois must be covered by liability insurance. Vehicle owners are required to provide insurance information at the time of registration renewal.
Iowa:
Motorists must prove financial responsibility if involved in an accident or stopped by law enforcement.
Summary of factual data and analytical methodologies
Section
344.63
, Stats., as created by
2009 Wis. Act 28
, provides exceptions to the requirement of having a motor vehicle liability insurance policy to operate a motor vehicle on Wisconsin highways. The exceptions defined in the statutes are nearly identical to those provided for under Wisconsin's Safety Responsibility Law. The administration of the exceptions, as defined in this emergency rule, are purposely drafted to closely mirror the procedures currently in place under the Safety Responsibility Law.
Analysis and supporting documentation used to determine effect on small businesses
This regulatory change has no impact on small business. The Department does not anticipate any fiscal effect upon small businesses from this codification.
Small Business Impact
This regulatory change has no impact on small business. The Department does not anticipate any fiscal effect upon small businesses from this codification. The Department's Regulatory Review Coordinator may be contacted by e-mail at
ralph.sanders@dot.state.wi.us
, or by calling (414) 438-4585.
Fiscal Estimate
The Department does not anticipate any fiscal effect from this codification. The statutes already impose the requirement that the Department accept these filings. This rule making merely creates an efficient framework for performing that required work.
Anticipated costs incurred by private sector
The Department estimates that there will be no fiscal impact on private sector revenues or liabilities.
Text of Emergency Rule
SECTION 1. Trans 100.25 is created to read:
Trans 100.25 Mandatory insurance.
(1) EXCEPTIONS. The purpose of this section is to implement and administer the provisions of Subch.
VI of Chapter 344
, Stats., relating to mandatory insurance requirements and exceptions to the requirement of having automobile insurance in Wisconsin.
(2) DEPOSITS IN LIEU OF MANDATORY INSURANCE. A person making a deposit with the department under s.
344.63
, Stats., shall file a complete application with the department containing all required information. In addition, the person shall provide the additional materials or information and deposit in the form required in subs. (3) to (5).
(3) CASH DEPOSITS. (a) For purposes of s.
344.63 (1) (d)
, Stats., any of the following shall be considered a deposit of cash with the department:
1. United States currency.
2. A cashier's check or draft.
3. A money order.
4. A financial institution check or draft.
5. A certified personal or business check or draft.
6. An attorney trust account check or draft.
(b) Any person attempting to file cash in lieu of maintaining automobile liability insurance with the department pursuant to s.
344.63 (1) (d)
, Stats., shall file, with the deposit, a certification from the clerk of courts in the county where the depositor resides dated no later than 15 calendar days prior to the date the deposit is received by the department, that indicates the clerk has searched the official records of the county and that no records of unsatisfied judgments of any character against the depositor exist in that county.
(4) BOND. (a)
Surety bonds
. Any person attempting to file a surety company bond in lieu of maintaining automobile liability insurance with the department pursuant to s.
344.63(1)(a)
, shall file a bond of a surety company duly authorized to transact business within this state that is conditioned for the payment of the amounts specified in s.
344.01(2)(d)
, Stats. The bond may not be cancelable except after 10 days written notice to the secretary. The bond shall be in the form specified by the department.
(b)
Judicial bonds
. Any person attempting to file a judicially authorized bond in lieu of maintaining automobile liability insurance with the department pursuant to s.
344.63 (1) (a)
, Stats., shall file a bond with at least 2 individual sureties each owning real estate within this state and together having equities equal in value to at least twice the amount of the bond, which real estate shall be scheduled in the bond approved by a judge of a Wisconsin circuit or appellate court. The bond must be conditioned for the payment of the amounts specified in s.
344.01(2)(d)
, Stats., and may not be cancelable except after 10 days written notice to the secretary.
(5) SECURITIES. Any person attempting to file securities with the department pursuant to s.
344.63(1)(d)
, Stats., shall file all of the following:
1. A certification from the clerk of courts in the county where the depositor resides dated no later than 15 calendar days prior to the date the deposit is received by the department, that indicates the clerk has searched the official records of the county and that no records of unsatisfied judgments of any character against the depositor exist in that county.
2. An opinion of counsel, for the benefit of the department and persons intended to be protected by the filing described in s.
344.37(2)
, Stats., that the securities to be filed by the depositor are securities that may legally be purchased by savings banks or for trust funds of in this state. The opinion shall identify the state or federal statute or regulation permitting the purchase of each deposited security.
3. An affidavit that the securities have a fair market value in excess of $60,000.
4. A pledge of the securities to the department in the form required by the department pledging the securities for the payment of damages resulting from the ownership, maintenance, use or operation of a motor vehicle after such deposit was made, including damages for care and for loss of services because of bodily injury to or death of any person and damages because of injury to or destruction of property and the consequent loss of use thereof. The pledge shall assign all rights to sell or redeem the securities or any coupons associated with the securities to the department in trust for the purposes set forth in this subdivision. The pledge shall exempt the department from any liability for selling or not selling the securities at any time, and shall specify that the depositor relinquishes all rights to sell the securities or to demand their sale by the department. The pledge shall remain effective until the earlier of the return of the deposit pursuant to s.
344.63(3)
, Stats., or of the sale of the securities, whether made so that the proceeds of sale can be applied to the payment of judgments and assignments relating to motor vehicle accidents, following the procedure described in s.
344.20 (2)
, Stats., or made for any other reason.
5. The share certificates, bonds, including all bond coupons, if any, or other certificate.
Finding of Emergency
The Department of Transportation finds that an emergency exists and that the attached rule is necessary for the immediate preservation of the public health and welfare. A statement of the facts constituting the emergency is the requirements of the mandatory insurance laws in Chapter
344
, Stats., as created by
2009 Wis. Act 28
, contain exceptions to furnishing proof of a motor vehicle liability insurance policy. This emergency rule defines the administration of those exceptions. These mandatory insurance requirements, and the exceptions, are effective June 1, 2010, thereby necessitating an emergency rule being put into place until the effective date of the permanent rule. Clarification of the mechanism to be used to qualify for an exception under the new statute will be useful to persons wishing to file for an exception. Persons whose religious beliefs preclude them from buying insurance will benefit from this rule making.
Agency Contact Person
Reginald Paradowski, Section Chief
Division of Motor Vehicles
Driver Information Section, Room 301
P. O. Box 7983, Madison, WI 53707-7983
Phone: (608) 264-7002
