CR_13-005 Hearing to consider rule revising Chapter NR 18, relating to Wisconsin's falconry rules.

There are no other relevant statutes or rules that are related to WRS compliance with the IRC that are not addressed in this rule.

Plain language analysis

Clarify how ETF treats specific situations under the IRC to ensure WRS compliance.

These changes are consistent with current statutory requirements.

•   Amending the definition of "maximum voluntary contribution" to clarify that ETF will adjust the amounts according to the limits set by the Internal Revenue Service(IRS) and which are changed periodically.

•   Amending s. ETF 10.65 regarding the refund of excess contributions to clarify that refunds will be processed as required by the IRS.

•   Clarifies that ETF will not violate section 503(b) of the IRC regarding prohibited transactions.

•   Clarifies that ETF is maintained for the exclusive benefit of participants and their beneficiaries, as required by the IRC.

Summary of, and comparison with, existing or proposed federal statutes and regulations

This rule complies with the IRS, IRS regulations and other requirements. The rules are written to ensure continued compliance with these laws, regulations and requirements.

Comparison with rules in adjacent states

Please see attached Fiscal and Economic Impact Analysis.

Summary of factual data and analytical methodologies

The proposed rule is intended to clarify ETF's rules regarding compliance with the IRC. ETF worked closely with its outside tax counsel to develop the proposed rule.

Accuracy, integrity, objectivity and consistency of data

The present rule changes were a result of recommendations from ETF's outside tax counsel and as required to maintain compliance with the internal revenue code. ETF conducted analysis with integrity in an accurate, objective, and consistent manner in accordance with its fiduciary responsibilities to its members.

Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis

The rule does not have an effect on small businesses because private employers and their employees do not participate in, and are not covered by, the Wisconsin Retirement System.

Effect on Small Business

There is no effect on small business.

Proposed Effective Date

This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided by s. 227.22 (2) (intro.) , Stats.

Fiscal Estimate

The rule will not have any fiscal effect on the administration of the Wisconsin Retirement System, nor will it have any fiscal effect on the private sector, the state or on any county, city, village, town, school district, technical college district, or sewerage districts.

Agency Contact Person

Mary Alice McGreevy, Compliance Officer, Department of Employee Trust Funds, P.O. Box 7931, Madison WI 53707. Phone: [phone]; E-mail: maryalice.mcgreevy@ etf.wi.gov .

ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Amend ETF 10.01(3i), 10.65 and create ETF 10.85 and 20.0251 regarding compliance with the Internal Revenue Code.
Subject
Internal Revenue Code compliance.
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
This rule-making is needed to amend the existing rules and create new rules to clarify how the Wisconsin Retirement System complies with the Internal Revenue Code.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
There is no economic and fiscal impact on small business, business sectors, public utility rate payers, local governmental units and the state's economy as a whole. The rule change addresses the need to clarify how the Wisconsin Retirement System complies with the Internal Revenue Code.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The rule language more accurately reflects tax requirements under IRC §§ 401 (a) and 415. The agency does not see alternatives to achieving the policy goal of the rule amendments.
Long Range Implications of Implementing the Rule
There are no long range economic or fiscal impacts of the rule.
Compare With Approaches Being Used by Federal Government
The proposed rule amendments are required to maintain written plan document compliance with federal tax requirements under IRC §§401 (a) and 415. Therefore the goal of the rule amendment is to more accurately reflect current legal requirements under the federal government.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Illinois — The Illinois Pension Code provides comparable provisions regarding compliance of the public employee pension system with the Internal Revenue Code. Iowa — The Iowa Public Employees' Retirement System is governed by Iowa Code Chapter 97(B) and Chapter 495 of the Iowa Administrative Rules. These laws and rules provide comparable provisions regarding compliance of the public employee pension system with the Internal Revenue Code. Michigan — Chapter 38 of the Michigan Statutes contain some provisions that are comparable regarding the State Employees' Defined Benefit Pension Plan compliance with the Internal Revenue Code. Minnesota — Chapters 352 to 356A of the Minnesota Statutes contain some provisions that are comparable regarding compliance of the Public Employees' Retirement Association Defined Benefit Pension Plan with the Internal Revenue Code.

Notice of Hearing

Natural Resources

Fish, Game, etc., Chs. NR 1—

CR 13-005

(DNR # ER-19-10)

NOTICE IS HEREBY GIVEN THAT pursuant to ss. 227.16 and 227.17 , Wisconsin Stats, the Department of Natural Resources will hold a public hearing to discuss revisions to Chapter NR 18 , Wisconsin Administrative code on Wisconsin's falconry rules related to governing the sport of falconry, on the date and at the time and location listed below.

Hearing Information

Date:   Tuesday, February 12, 2013

Time:   6:00 p.m. until 8:00 p.m.

Location:   Fitchburg DNR Service Center
  3911 Fish Hatchery Road
  Fitchburg, WI 53711

A public hearing will be held to discuss revisions to Wisconsin's falconry administrative code, ch. NR 18 . The hearing will be held in the Gathering Waters Room of the Fitchburg Service Center, and the presiding hearing officer will be DNR Attorney Michael Kowalkowski. There will be Live Meeting availability for those who are unable to attend in person.

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. Contact Sumner Matteson in writing at the Department of Natural Resources, Bureau of Endangered Resources (ER/6),101 S Webster, Madison, WI 53707; by E-mail to [e-mail] or by calling [phone].

For more information or to request a Live Meeting link, please contact Sumner Matteson at the addresses or numbers above.

Availability of the p roposed r ules and Submitting Comments

The proposed rule and supporting documents may be reviewed and comments can be electronically submitted at the following internet site: http://adminrules.wisconsin.gov . A copy of the proposed rule and supporting documents may also be obtained from Sumner Matteson, Department of Natural Resources, Bureau of Endangered Resources (ER/6), 101 S. Webster St, Madison, WI, 53703, by calling [phone]or by contacting Sumner.matteson@wisconsin. gov and at www.legis.state.wi.us/rsb/code.htm (Wisconsin Administrative Register).

Written comments on the proposed rule may be submitted via U.S. mail or email to Sumner Matteson at the addresses noted above. Written comments, whether submitted electronically or by U.S. main, will have the same weight and effect as oral statements presented at the public hearings. Comments may be submitted until February 12, 2013.

Analysis Prepared by the Department of Natural Resources

Chapter NR 18 is being revised to comply with federal regulations governing the sport of falconry. The US Fish and Wildlife Service will no longer issue a permit to individuals engaged in falconry; permits will be issued by states with oversight by the Service.

Statutes interpreted

Section 29.319 , Wis. Stats., Falconry Regulation.

Statutory authority

Sections 29.319 , Wis. Stats.

Explanation of agency authority

The department holds authority under Wis. Stat. s. 29.319 to regulate falconry and the taking of raptors for falconry. The department is also authorized to establish rules for falconry, which is administrative code ch. NR 18 . The department may provide permits to both Wisconsin residents and non-residents. The department is also authorized to charge a fee for these permits and to deposit these fees in the Endangered Resources Fund, s. 20.370 (1) (fs) Wis. Stats.

Related statute or rule

Chapter NR 18 , governing the sport of falconry.

Statutory section Title [or subject]

29.014(1)   Rule making for Ch. 29

29.039   Non game species

169.04   Possession of live wild animals.

169.05   Taking of wild animals.

169.06   Introduction, stocking, and release of wild animals.

169.07   Exhibition of live wild animals.

169.10   Sale and purchase of live wild animals.

227.11 (2)   Rule making authority.

Plain language analysis

The proposed rule defines and clarifies different falconry terms and conditions.

Summary of, and comparison with, existing or proposed federal regulations

The U.S. fish and wildlife service will no longer issue a permit to individuals engaged in the sport of falconry. Pursuant to 50 CFR 21.29 (b), permits will be issued by states with oversight provided by the Service. The Service has formulated revisions as to how the sport of falconry is to be conducted and supervised by the states. The proposed rule makes the revisions to current code to ensure compliance with federal rules by January 1, 2014.

Comparison with rules in adjacent states

All states must comply with federal rules pertaining to the sport of falconry by January 1, 2014.

Summary of factual data and analytical methodologies

A total of 98 resident falconers and approximately 10 or fewer non-resident falconers will be affected by the proposed rule.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report

This rule update applies only to falconers. The proposal does not impose any additional compliance or reporting requirements on small businesses nor are any design or operational standards contained in the rule. The department has determined that this rule will not adversely affect in a material way the economy, a sector of the economy, productivity, jobs, or overall economic competitiveness of the state. No fiscal impacts are expected for the public utility rate payers or local government units. This determination was made after conducting an economic impact analysis and soliciting comments beginning on March 6, 2012 for 14 days. The department requested comments from the Wisconsin Falconry Association (WFA). Comments from WFA, approving the economic impact analysis were received in a letter from WFA dated May 11, 2012.

Effect on Small Business, Including How the Rule Will Be Enforced

None.

Pursuant to ss. 227.114 and 227.137 , Wis. Stats., it is not anticipated that the proposed rules will have an economic impact on small businesses. The department has determined that this rule would not adversely affect in a material way the economy, a sector of the economy, productivity, jobs, or the overall economic competitiveness of this state.

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

Environmental Impact

The department has made a preliminary determination that this action does not involve a significant adverse environmental effect and does not need an environmental analysis under ch. NR 150 , Wisconsin Administrative Code.

Agency Contact Person

Sumner Matteson, 101 S. Webster St., P.O. Box 7921, Madison, WI 53707-7921. [phone], email: [e-mail] .

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA 2049 (R 07/2011) ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Admin Code Chapter NR 18, Falconry
Subject
Revisions to the Falconry Permitting Rules
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS X SEG ⍽ SEG-S			20.370 1 (fs)
Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect X Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs X Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		X Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The U.S. Fish and Wildlife Service will no longer issue a permit to individuals engaged in the sport of falconry. Permits will be issued by states with oversight provided by the Service. The Service has formulated revisions as to how the sport of falconry is to be conducted and supervised by the states. The proposed rule makes the revisions to current code to ensure compliance with federal rules by January 14, 2014.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
The total impact of this rule is indeterminate. The proposed rule does not change existing code regarding permit fees for approximately 100 resident falconers and fewer than 10 nonresident falconers. The resident falconer pays $75 for a 3-year falconry permit, and a nonresident falconer pays $100 annually for a nonresident raptor trapping permit. The updated rule does specify that permit holders with hybrid raptors must have two telemetry radio transmitters attached to the hybrid raptors. Currently, there are seven hybrid permit holders in the state. The radio telemetry transmitter costs $185.00/unit (two needed per rule) and a radio telemetry receiver costs $670.00. It is estimated this provision could cost each of the seven permit holders $1,040 for the telemetry radio purchases. The updated rule also mentions an ISO-compliant microchip; this is mentioned as optional in the rule. It is estimated that a microchip and the related scanner could cost approximately $220.00. The number of falconers who may use this option is not known, but it is estimated to be no more than a dozen. It is estimated that there will be a slight increase in time spent by permit holders to meet reporting requirements, but it is not possible to estimate an exact cost related to the potential workload increase. This rule update applies only to falconers. The proposal does not impose any additional compliance or reporting requirements on small businesses nor are any design or operational standards contained in the rule. The department has determined that this rule will not adversely affect in a material way the economy, a sector of the economy, productivity, jobs, or overall economic competitiveness of the state. No fiscal impacts are expected for the public utility rate payers or local government units.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Allows the State of Wisconsin to take over control of regulating the sport of falconry.
Long Range Implications of Implementing the Rule
Will provide a consistent framework for regulating the sport of falconry.
Compare With Approaches Being Used by Federal Government
The U.S. Fish and Wildlife Service formerly provided permits to individuals engaged in the sport of falconry. Permits now will be issued by states with oversight provided by USFWS.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
All states need to comply with USFWS revisions to the sport of falconry.
Name and Phone Number of Contact Person
Sumner Matteson [phone]