CR_13-075 Revises sections Phar 7.08, 8.05, 8.07, and 8.09, relating to electronic prescriptions.

Comparison with rules in adjacent states

An Internet-based search of the statutes, rules, and codes of the four adjacent states revealed the following with respect to training of unlicensed individuals, and any required forms to verify such training.

Illinois: The Illinois Department of Financial & Professional Regulation issues temporary training licenses during residency requirements for dentists, hygienists and dental specialists. In the code, there is no mention of a requirement to apply or report such activity to the Division of Professional Regulation.

Iowa: The Iowa Dental Board has responsibility over dentistry, dental hygiene and dental assisting and administers the state code, section 1220.156. Iowa chapter 11, Licensure to Practice Dentistry or Dental Hygiene, contains no reference to training of unlicensed individuals or for any forms so required.

Michigan: The Michigan Board of Dentistry is charged with the licensing and practice requirements of dentists; these rules include dentists training on various methods of sedation and proper handling of waste. No rules currently list training and verification forms for the training of unlicensed individuals. [Public Health Code: Act 368 of 1978, Part 166, Dentistry].

Minnesota: Under the Minnesota Board of Dentistry, " … dentists employing, assisting, or enabling in any manner an unlicensed person to practice dentistry … " as found in Minnesota Statutes, section 150A.08, subdivision 1, is in violation of the state code. A brief review of the code did not reveal that a licensee has the authority to train an unlicensed individual, nor is there a means to report such training to the board. [Chapter 3100, Dentists, Hygienists, and Assistants].

Summary of factual data and analytical methodologies

The Board, in reviewing their rules in response to Executive Order 61, recognized that in practice, no form has been approved by the Board or required to be submitted to the Board for each circumstance of training an unlicensed person.

The proposed provisions are expected to reflect current practice.

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

The Dentistry Examining Board in reviewing their rules in response to Executive Order 61 found that neither the Board nor the industry was in conformance to the rule, which was deemed unnecessary.

Effect on Small Business

These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1) , Stats. The Department's Regulatory Review Coordinator may be contacted by email at [e-mail] , or by calling [phone].

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

This rule change will not have an effect on small business.

Agency Contact Person

Jean MacCubbin, Program Manager

Department of Safety and Professional Services, Division of Policy Development

1400 East Washington Avenue, Room 151

P.O. Box 8935

Madison, WI 53708-8935

Telephone: [phone]

Email: [e-mail]

Telecommunications: contact at 711

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Ch. DE 12, Delegation of Functions to Unlicensed Persons
3. Subject
Training of Unlicensed Persons and Deletion of Required Form(s)
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			s. 20.165 (1) (g), Stats.
6. 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 Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
Chapter DE 12, delegation of functions to unlicensed persons, has not been revised since 1991. The Dentistry Examining Board requests to repeal the requirements for the submittal of a form to verify a dentist's training and delegation of any remediable dental procedure to an unlicensed person.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Licensed dentists.
11. Identify the local governmental units that participated in the development of this EIA.
None known.
12. 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 proposed rule would have no affect on Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole. The major impact would be the deletion of a process not currently followed while maintaining both the delegation responsibilities with the licensed dentist and reporting of violations by dentists and dental hygienists.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Rules will be contemporary and reflect current practice in the industry.
14. Long Range Implications of Implementing the Rule
Licensed dentists will continue to be responsible for training unlicensed persons in practices and functions, but so communicating to the board will not be practice.
15. Compare With Approaches Being Used by Federal Government
An Internet-based search of the U.S. Code or the Code of Federal Register did not reveal any current or proposed rules relating to dentists training unlicensed individuals or any forms recording such training.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Illinois: The rules for Illinois Department of Financial & Professional Regulation for dentistry has no mention of a licensed dentist providing such training be required to apply or report such activity to the Division of Professional Regulation. Iowa: The rules for the Iowa Dental Board have no reference to training of unlicensed individuals or forms so required. Michigan: Under the Michigan Board of Dentistry, there are no rules currently listing training and verification forms for unlicensed individuals. Minnesota: Under the Minnesota Board of Dentistry rules, a review did not reveal that a licensee has the authority to train an unlicensed individual, nor is there a means to report such training to the Board.
17. Contact Name				18. Contact Phone Number
Jean MacCubbin				608.266.0955

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Safety and Professional Services —
Pharmacy Examining Board

CR 13-075

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Pharmacy Examining Board in ss. 15.08 (5) (b) , 450.02 (3) (a) , and 961.31 , Stats., and interpreting ss. 450.11 (2) and 961.38 , Stats., the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order to repeal s. Phar 7.08 (1) (Note) and amend ss. Phar 8.05 (4) , 8.07 (2) , and 8.09 (1) , (2) , (3) , and (4) , relating to electronic prescriptions.

Hearing Information

Date:   Wednesday, October 30, 2013
Time:   9:05 a.m .
Locations:   1400 East Washington Ave.
  Room 121
  Madison, WI

Appearances at the Hearing

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and arguments in writing as well. Facts, opinions, and arguments may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Place Where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail] . Comments must be received at or before the public hearing to be held on October 30, 2013 , to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, by email at [e-mail] , or on our website at http://dsps.wi.gov/Default.aspx?Page=44e541e8-abdd-49da-8fde-046713617e9e .

Analysis Prepared by the Department

Statutes interpreted

Sections 450.11 (2) and 961.38 , Stats.

Statutory authority

Sections 15.08 (5) (b) , 450.02 (3) (a) , and 961.31 , Stats.

Explanation of agency authority

Section 15.08 (5) (b) , Stats., allows each examining board to "promulgate rules for its own guidance and for the guidance of the trade or profession to which it pertains and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or profession."

Section 450.02 (3) (a) , Stats., authorizes the Board to promulgate rules "[r]elating to the … distribution and dispensing of prescription drugs."

Section 961.31 , Stats., authorizes the Board to promulgate rules relating to the manufacture, distribution, and dispensing of controlled substances within the state.

Related statute or rule

Section 961.38 , Stats.

Plain language analysis

2011 Wisconsin Act 159 amended s. 961.38 , Stats. to allow electronic prescriptions for schedule II controlled substances. This rule updates the Pharmacy Examining Board rules accordingly.

Section 1 repeals the note following s. Phar 7.08 (1) which stated that prescription orders for schedule II controlled substances may not be transmitted electronically except in emergency.

Section 2 amends s. Phar 8.05 (4) to indicate that a prescription containing a controlled substance can only be dispensed pursuant to a written hard copy or electronic order signed by the prescribing practitioner.

Section 3 amends s. Phar 8.07 (2) to indicate the notation of the partial quantity provided is written on the hard copy of the prescription or the electronic order. The word "emergency" is moved to solely modify oral prescription.

Sections 4, 5, and 7 amend s. Phar 8.09 (1) , (2) , and (4) to remove electronic from the emergency prescriptions and to reflect the provisions relate solely to oral authorizations in an emergency situation.

Section 6 amends s. Phar 8.09 (3) to remove the reference to electronic in this emergency prescription provision. It also removes the reference to the "practitioner's phone number as listed in the telephone directory" to reflect current technologies may be used rather than the outdated method of looking phone numbers up in a telephone directory.

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

21 CFR §1311 allows electronic prescriptions for controlled substances.

Comparison with rules in adjacent states

Illinois: Per Ill. Admin. Code Title 68, s. 1330.760, electronically transmitted prescriptions for controlled substances may be dispensed only as provided by federal law.

Iowa: Per Iowa Admin. Code 657 to 8.19, electronic prescriptions may be accepted for controlled substances.

Michigan: Per Mich. Admin. Code s. 333.7333 , electronic prescriptions of controlled substances are allowed, if not prohibited by federal law.

Minnesota: Per Minnesota Rules 6800.3000 Subp. 3, electronic prescriptions are allowed if they conform to the rules of the federal Drug Enforcement Administration.

Summary of factual data and analytical methodologies

The methodology used was to update the rule to reflect the changes to the statutes as a result of 2011 Wisconsin Act 159 .

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

This rule was posted for economic comments for 14 days and none were received. This rule updates the code to reflect the statutory change to allow for electronic prescriptions and will not have an economic impact.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

There is no effect on small business as defined under s. 227.114 (1) , Stats.

Agency Contact Person

Sharon Henes, Administrative Rules Coordinator

Department of Safety and Professional Services, Division of Policy Development

1400 East Washington Avenue, Room 151

P.O. Box 8935

Madison, WI 53708

Telephone: [phone]

Email: [e-mail]

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapters Phar 7, 8
3. Subject
Allowing electronic prescriptions for controlled substances schedule II.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. 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 Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
2011 Wisconsin Act 159 amended § 961.38, Stats. to allow electronic prescriptions for schedule II controlled substances. This rule updates the Pharmacy Examining Board rules accordingly.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
This rule was posted for 14 days for economic comments and none were received.
11. Identify the local governmental units that participated in the development of this EIA.
None. This rule does not affect local governments.
12. 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)
This rule will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units or the state's economy as a whole. This rule updates the code to reflect the statutory change to allow for electronic prescriptions.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The benefit of implementing the rule would allow a pharmacy/pharmacist to use modern technology in a manner that efficiently meets patient needs by allowing electronic prescriptions for schedule II controlled substances and allowing oral prescriptions to be reduced to an electronic record while maintaining public safety. This rule updates the code to reflect the revision in statute created by 2011 Act 159 to allow for electronic prescriptions to schedule II controlled substances.
14. Long Range Implications of Implementing the Rule
The long range implication is to increase public safety by cutting down on dispensing errors or patients misplacing their written prescription orders by allowing electronic prescriptions, rather than only written prescription orders.
15. Compare With Approaches Being Used by Federal Government
The federal government allows for electronic prescriptions for schedule II controlled substances.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Our four neighboring states allow for electronic prescriptions for scheduled II controlled substances, if not prohibited by federal law.
17. Contact Name				18. Contact Phone Number
Sharon Henes, Administrative Rules Coordinator				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Safety and Professional Services —
Pharmacy Examining Board

CR 13-076

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Pharmacy Examining Board in ss. 15.08 (5) (b) and 450.02 (3) , Stats., and interpreting ss. 450.01 (7) and 450.02 (3) , Stats., the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order to repeal s. Phar 7.04 (1) (e) 2. (Note) and amend s. Phar 7.04 (1) (e) 2. , relating to return or exchange of health items.

Hearing Information

Date:   Wednesday, October 30, 2013
Time:   9:00 a.m .
Locations:   1400 East Washington Ave.
  Room 121
  Madison, WI

Appearances at the Hearing

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and arguments in writing as well. Facts, opinions, and arguments may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Place Where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail] . Comments must be received at or before the public hearing to be held on October 30, 2013 , to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, by email at [e-mail] , or on our website at http://dsps.wi.gov/Default.aspx?Page=44e541e8-abdd-49da-8fde-046713617e9e .

Analysis Prepared by the Department

Statutes interpreted

Sections 450.01 (7) and 450.02 (3) , Stats.

Statutory authority

Sections 15.08 (5) (b) and 450.02 (3) , Stats.

Explanation of agency authority

Section 15.08 (5) (b) , Stats., allows each examining board to "promulgate rules for its own guidance and for the guidance of the trade or profession to which it pertains and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade or profession."

Section 450.02 (3) , Stats., allows the Pharmacy Examining Board to promulgate rules relating to the manufacture of drugs and the distribution and dispensing of prescription drugs; establish security standards for pharmacies and the manufacture, distribution, and dispensing of hypodermic syringes, needles, and other objects used, intended for use or designed for use in injecting a drug.

Related statute or rule

Section 938.02 , Stats

Plain language analysis

Section 1 updates the language in the rule to reflect the statutory changes in the language and citations resulting from 2005 Wisconsin Act 344 . "Secured correctional facility" was changed to "juvenile correctional facility" and "secure detention facility" was changed to "juvenile detention facility." As a result of these changes, the statutory citations were amended to reflect their new position in the alphabet in s. 938.02, Stats. In addition, 2005 Wisconsin Act 344 repealed s. 938.02 (15p), Stats.

Section 2 repeals the note which followed s. Phar 7.04 (1) (e) 2. advising the public of the changes. The note is no longer necessary due to the updating of this rule.

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

None.

Comparison with rules in adjacent states

Illinois: In Illinois's section relating to the return of drugs, it does not address correction facilities separately.

Iowa: In Iowa's section relating to the return or exchange of health items, it does not address correction facilities separately.

Michigan: In Michigan's section relating to return or exchange of health items, there is a definition for "state correctional facility" which means a facility or institution that houses a prisoner population under the jurisdiction of the department of corrections.

Minnesota: In Minnesota's section relating to return of drugs and devices, such a return is only allowed by hospitals, nursing homes, and assisted living facilities.

Summary of factual data and analytical methodologies

On June 26, 2012, the Governor's Office recommended that the Pharmacy Examining Board review and update this rule to reflect current statutes.

Currently there is a note indicating the changes. This rule moves the updates from the note into the rule itself to reflect the statutory language change.

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

This rule was posted for economic comments for 14 days and none were received. This rule corrects statutory references only and has no economic impact.

Fiscal estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

There is no effect on small business as defined under s. 227.114 (1) , Stats.

Agency Contact Person

Sharon Henes, Administrative Rules Coordinator

Department of Safety and Professional Services, Division of Policy Development

1400 East Washington Avenue, Room 151

P.O. Box 8935

Madison, WI 53708

Telephone: [phone]; e

Email: [e-mail]

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Section Phar 7.04 (1) (e) 2.
3. Subject
Statutory reference changes within return or exchange of health items.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. 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 Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
Currently there is a note for this section indicating various statutory references have been changed. This rule updates the section with current statutory references and eliminates the note.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
This rule was posted for 14 days for economic comments and none were received.
11. Identify the local governmental units that participated in the development of this EIA.
None. This rule does not affect local governments.
12. 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)
This rule will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units, or the state's economy as a whole. This rule only corrects statutory references in the current rule.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The benefit is to clean-up the rule to match current statutory references.
14. Long Range Implications of Implementing the Rule
The long range implication is the rule will have clarity without having to refer to the note to understand the references.
15. Compare With Approaches Being Used by Federal Government
None.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
This rule purely updates the rule to reflect the current Wisconsin statute references. A comparison of the underlying rule which is not changing, Illinois and Iowa do not address correction facilities separately; Michigan's section relating to return or exchange of health items has a definition for "state correctional facility"; and Minnesota only allows the return of drugs and devices by hospitals, nursing homes and assisted living facilities.
17. Contact Name				18. Contact Phone Number
Sharon Henes, Administrative Rules Coordinator				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Safety and Professional Services —
Real Estate Examining Board

CR 13-072

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Real Estate Examining Board in ss. 15.405 (11) , 227.11 (2) , 452.07 (1m) , and 452.07 , Stats., and interpreting ss. 452.07 (1m) , and 452.07 , Stats., the Board will hold a public hearing at the time and place indicated below to consider an order to repeal ss. REEB 18.08 , 18.11 (2) , and 18.12 and Note; renumber and amend s. REEB 18.11 (1) as s. REEB 18.11 (intro.) ; amend ss. REEB 18.01 (title), 18.02 (5) (intro.) and (a) and (b) and (6) (intro.) and (a) to (g) , 18.031 (1) (intro.) , (a) , and (b) , 18.033 (title) and (2) , 18.035 (2) , 18.037 (intro.) and Note, 18.06, 18.09 (1) (intro.) and (a) to (f), and 18.13 (1) (intro.), (a) to (d), (2) to (4), and (6) (e); repeal and recreate ss. REEB 18.02 (1) and 18.10 ; and create ss. REEB 18.02 (intro.) (Note), (1e) and Note, and (4) and Note, 18.034 (1) (title) and 18.10, relating to real estate trust accounts.

Hearing Information

Date:   Thursday, October 31, 2013
Time:   10:00 a.m .
Locations:   1400 East Washington Ave.
  (Enter through 55 N. Dickinson St.)
  Room 121A
  Madison, WI

Appearances at the Hearing

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and arguments in writing as well. Facts, opinions, and arguments may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Place Where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail] . Comments must be received at or before the public hearing to be held on October 31, 2013 , to be included in the record of rule-making proceedings.

Copies of Proposed Rule

Copies of this proposed rule are available upon request to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, by email at [e-mail] or on our website at http://dsps.wi.gov/Default.aspx?Page=44e541e8-abdd-49da-8fde-046713617e9e .

Analysis prepared by the Department

Statutes interpreted

Sections 452.07 (1m) , and 452.07 , Stats.

Statutory authority

Sections 15.405 (11) , 227.11 (2) , 452.07 (1m) , and 452.07 , Stats.

Explanation of agency authority

Examining boards are generally authorized by ss. 15.08 (5) (b) and 227.11 (2) (a) , Stats., to promulgate rules for its own guidance and for guidance within the profession and to promulgate rules interpreting any statute enforced or administered by it. Under ss. 452.07 (1m) and 452.07 , Stats., the board shall promulgate rules for the guidance of the real estate profession.

Related statute or rule

Section 452.13 (2) , Stats.

Plain language analysis

This proposed rule-making order clarifies the rules relating to real estate trust accounts by correcting internal inconsistencies, reflecting current practices, and removing antiquated provisions. In addition, format changes and typographical/punctuation errors are being corrected.

SECTION 1: The proposed rules modify the section title to be consistent with section titles in other chapters within this series, chs. REEB 11 to 26 . For example, the statutory authority provided to the board is now separated from the definitions subsection.

SECTIONS 2 to 6: The proposed rules add or update definitions commonly used in the real estate industry. When applicable, the statutory definition is cited. In addition. the proposed rules update formatting now in use since the last chapter revision and use terms consistent with those used in ch. 452 , Stats. As an example; in lists such as SECTION 6., s. REEB 18.02 (6) , colons are no longer in use and have been replaced by periods; the use of and is deleted as the introductory clause is amended to indicate all of the items in the list apply.

SECTION 7: The proposed rules correct minor typos, grammatical and punctuation errors, and utilize the new rule-making format required since the last revision of this chapter.

SECTIONS 8 to 10: The intent of the proposed changes is to clarify when a trust account can be opened and the naming of such accounts; no substantive changes are proposed.

SECTION 11: The proposed rules move existing text to a more appropriate subsection and provide information to access forms via the department webpage.

SECTION 12: The proposed rules clarify designating responsibilities as to who holds escrow funds.

SECTION 13: The proposal repeals a section relating to cooperating brokers, a practice that has ceased.

SECTION 14: Proposed changes are for clarification purposes only.

SECTION 15: The proposed rules clarify when comingling of funds are prohibited; in addition, subsection titles are created to assist the reader.

SECTIONS 16 and 17: The proposed rules renumber the subsection as an introductory clause due to the repeal of sub. (2). The proposed rules repeal sections that are determined to be no longer in use or antiquated to the real estate industry—promissory notes and branch offices.

SECTIONS 18, 19, and 20: The proposed rules relate to recordkeeping, specifically ledgers, journals, and trial balances. Clarification of terms and designating responsibilities are also proposed.

SECTION 21. This section establishes an effective date of July 1, 2014, which is timely for upcoming training and examinations.

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

There are no existing or proposed federal regulations addressing real estate trust accounts with respect to licensees.

Comparison with rules in adjacent states

An Internet-based search revealed the following:

Illinois : In Illinois, the Bureau of Real Estate Professions administers and enforces the Illinois Real Estate License Act of 2000, the Real Estate Timeshare Act, the Land Sales Registration Act, the Real Estate Appraiser Licensing Act of 2002, Provisions and Rules of the Uniform Standards of Professional Appraisal Practice, the Auction License Act, and the Home Inspector License Act. The Bureau has responsibility for licensing and regulating real estate brokers, managing brokers, leasing agents, real estate firms, real estate appraisers, auctioneers, auction firms, home inspectors, and home inspector entities. An internet search did not reveal details relating to any Illinois codes and statues pertaining to real estate trust accounts.

Iowa: In Iowa, the Professional Licensing Division (IPLD) oversees the real estate industry through the following rules: Iowa Code ch. 543 B, Real Estate Brokers and Salespersons; ch. 543 C, Sales of Subdivided Land Outside of Iowa; and ch. 557 A, Iowa Time-Share Act. These rules are published in the Iowa Administrative Code ch. 193E. Under the jurisdiction of the IPLD, the Iowa Real Estate Commission regulates and administers the real estate laws in Iowa. Notification of opening, closing and transferring accounts, naming the accounts, as well as submitting interest to a designated state agency is similar to rules and statutes in Wisconsin.

Michigan: In Michigan, Article 25 of Public Act 299 of 1980, licenses and regulates the real estate industry through the Board of Real Estate Brokers and Salespersons. In Michigan, R339.22313, rule 313, real estate trust accounts are held in non-interest bearing, demand-checking accounts. Received funds must be deposited within two banking days, with some exceptions. A third party may manage the funds if interest is being sought. Disbursement, co-mingling and recordkeeping are detailed in the state guidelines for trust accounts. [ http://www.rentupm.com/wp-content/uploads/2011/11/Michigan-Trust-Account-Guidelines.pdf ].

Minnesota: The Minnesota statutes are similar to Wisconsin and require all real estate trust accounts to pool interest from interest bearing accounts. The commissioner of management and budget shall deposit such funds into the housing trust fund account. Chapter 82.75, subd. 5, Trust accounts, outlines the state requirements, which include: maintaining and retaining records, timeliness of transaction including deposits within three business days. [ https://www.revisor.mn.gov/statutes/?id=82.75 ].

Summary of factual data and analytical methodologies

The Board relied upon their knowledge of processes and procedures currently in place in the industry and made determinations on modifying or eliminating out-dated practices and terms when found in their review. Practices relating to bookkeeping and keeping ledgers have changed with the introduction of computer software, for example.

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

Data was obtained from the Division of Professional Credential Processing regarding the number of licensees that would be affected by this regulatory change. As of 4/15/2013, there are 6,139 active licensed real estate salespersons and 10,373 active licensed real estate brokers. There are 1,051 licensed real estate business entities. The majority of real estate licensees work in small business environments; however, the proposed rules do not include any policy changes that would impact licensees or small business.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

This rule will not have a significant adverse effect on "small business."

Agency Contact Person

Jean MacCubbin, Program Manager

Department of Safety and Professional Services, Division of Policy Development

1400 East Washington Avenue, Room 151

P.O. Box 8935

Madison, WI 53708

Telephone: [phone]

Email: [e-mail]

Telecommunications relay services: at 711

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapter REEB 18, Trust Accounts.
3. Subject
Modernize the rules to reflect best practices by removing antiquated provisions, and repeal sections deleted by 2001 Act 18.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			s. 20.165 (1) (g), Stats.
6. 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 Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
With the exception of renumbering the chapter, this chapter has not been updated since 1983; the board has indicated various practices which are outdated.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Licensees, real estate brokers, and salespersons.
11. Identify the local governmental units that participated in the development of this EIA.
None known.
12. 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 are no new or increased costs associated with the promulgation of these rules on any of the business sectors listed.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
For new applicants for licenses, the rules will reflect contemporary practices specific to the real estate industry.
14. Long Range Implications of Implementing the Rule
The rule is not expected to need further revisions in the long-term.
15. Compare With Approaches Being Used by Federal Government
There is no existing or proposed legislation regarding real estate (investment) accounts.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
IA and MN have similar rules and require the interest to be forwarded to the state; MI has similar rules on the establishment and operation of trust accounts; IL has no state-level rules or laws pertaining to real estate trust accounts.
17. Contact Name				18. Contact Phone Number
Jean MacCubbin				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Safety and Professional Services —
Real Estate Examining Board

CR 13-073

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Real Estate Examining Board in ss. 15.405 (11) , 227.11 (2) , 452.07 (1m) , 452.05 (1) (b) , and 452.07 (1m) , Stats., and interpreting ss. 452.07 (1m) , 452.05 (1) (b) , and 452.07 , Stats., the Real Estate Examining Board will hold a public hearing at the time and place indicated below to consider an order of the Real Estate Examining Board to repeal s. REEB 16.03 (2) Note; to renumber s. REEB 16.02 (1) to s. REEB 16.02 (1e) ; to amend ss. REEB 16.03 (1) , (intro.), (a) , (b) , and (e) and (2) , 16.05 (1) and (2) , 16.06 (1) (intro.) , (a) , (b) , (e) , and (f) , (4) (intro.) and (a) to (b) , (5) (intro.) and (a) to (c) , (6) and (7) ; to repeal and recreate s. REEB 16.03 (2) Note, and to create ss. REEB 16.02 (intro.) , (1) and Note, (1m), (2e), (2m), (2r), (3m), and (4m), and 16.03 (2) Note, relating to use of approved forms and legal advice.

Hearing Information

Date:   Thursday, October 31, 2013
Time:   10:00 a.m .
Locations:   1400 East Washington Ave.
  (Enter through 55 N. Dickinson St.)
  Room 121A
  Madison, WI

Appearances at the Hearing

Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions, and arguments in writing as well. Facts, opinions, and arguments may also be submitted in writing without a personal appearance by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8935, Madison, Wisconsin 53708-8935. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Place Where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, WI 53708-8935, or by email to [e-mail] . Comments must be received on or before the public hearing to be held October 31, 2013 , to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Jean MacCubbin, Program Manager, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708-8935, by email at [e-mail] , or on our website at http://dsps.wi.gov/Default.aspx?Page=44e541e8-abdd-49da-8fde-046713617e9e .

Analysis Prepared by the Department

Statutes interpreted

Sections 452.07 (1m) , 452.05 (1) (b) , and 452.07 , Stats.

Statutory authority

Sections 15.405 (11) , 227.11 (2) , 452.07 (1m) , 452.05 (1) (b) , and 452.07 (1m) , Stats.

Explanation of agency authority

Examining boards are generally authorized by ss. 15.08 (5) (b) and 227.11 (2) (a) , Stats., to promulgate rules for its own guidance and for guidance within the profession and to promulgate rules interpreting any statute enforced or administered by it. Under s. 452.05 (1) (b) , Stats., the board shall approve forms for real estate practice. Under s. 452.07 (1m) , Stats., the board shall promulgate rules for the guidance of the real estate profession and define professional conduct and unethical practice.

Related statute or rule

There are no other statutes or rules other than those listed above.

Plain language analysis

With the exception of renumbering to reflect the Real Estate Examining Board, this rule has not been updated since 1986. The Board's intent is to update the rule to reflect current practice, update references to approved forms, and define terms. Specifically, this proposed rule-making order clarifies the rules relating to the use of approved forms and legal advice.

SECTIONS 1 to 4: These proposed changes clarify and create various terms used in the industry not previously defined in this rule or in chs. REEB 11 to 26 . The terms relate primarily to types of agreements, contracts and listings.

SECTIONS 5 to 7 and 9: These proposed changes relate to board-approved forms for use by licensees. The listing previously was in a Note; the listing will now be maintained on-line for downloading and will reflect the most current titles, numbering and forms. A Note is created to provide information on how to obtain board-approved forms.

SECTION 8. This section merely substitutes the term "provides" for "gives" when referring to legal advice.

SECTIONS 10 to 13: These proposed changes relate to the authority provided to the board in s. 452.05 (1) (b) , Stats., regarding approving forms as well as the conditions of use and amending such forms. In addition, rule format changes enacted since the last revision are proposed.

SECTION 14. An effective date is stated as the July 1, 2014, date will be timely for training and examination purposes.

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

Under the Real Estate Settlement Procedures Act (RESPA) various federally-created forms are required for use in all states, particularly for settlement transactions and closings. An example is a form FmHA, or its successor agency, requires under Public Law 103-354 1940-59, Settlement Statement. [ http://www.law.cornell.edu/cfr/text/7/1940.406 ]. There is no indication that current Federal laws dictate the use of approved forms for state use other than those related to federally-backed mortgages, HUD property transactions and radon disclosure.

Comparison with rules in adjacent states

An Internet-based search revealed the following:

Illinois: In Illinois, the Bureau of Real Estate Professions administers and enforces the Illinois Real Estate License Act of 2000, the Real Estate Timeshare Act, the Land Sales Registration Act, the Real Estate Appraiser Licensing Act of 2002, Provisions and Rules of the Uniform Standards of Professional Appraisal Practice, the Auction License Act, and the Home Inspector License Act. The Bureau has responsibility for the licensing and regulating real estate brokers, managing brokers, leasing agents, real estate firms, real estate appraisers, auctioneers, auction firms, home inspectors, and home inspector entities. In Illinois there are `standard' forms for various real estate transactions; these forms were not found to be state-approved forms, but available from various sources such as legal firms and professional groups. The Internet-based search did not reveal any details relating to Illinois codes and statues pertaining to state- or board- approved forms or any provisions for relating to legal advice provided by licensees.

Iowa: In Iowa, the Professional Licensing Division (IPLD) oversees the real estate industry through the following rules: Iowa Code ch. 543 B, Real Estate Brokers and Salespersons; ch. 543 C, Sales of Subdivided Land Outside of Iowa; and ch. 557 A, Iowa Time-Share Act. These rules are published in the Iowa Administrative Code ch. 193E. Under the jurisdiction of the IPLD, the Iowa Real Estate Commission regulates and administers the real estate laws in Iowa. An index of state-approved forms used in the real estate industry is found at: http://www.state.ia.us/government/com/prof/sales/forms_indexNew.html . Other than recommending buyers to obtain the advice of an attorney prior to signing contracts or offers, the rules were silent regarding allowing or prohibiting licensees providing legal advice.

Michigan: In Michigan, Article 25 of Public Act 299 of 1980, licenses and regulates the real estate industry. The Board of Real Estate Brokers and Salespersons approves forms, which are listed on: http://www.dleg.state.mi.us/dms/results.asp?docowner=BCSC&doccat=Real+Estate&doccata=LicDiv&Search=Search . No information was found to determine if the Michigan Board of Real Estate Brokers and Salespersons limits or allows licensees to provide legal advice.

Minnesota: The Minnesota statutes licensing and regulating the real estate industry is Article 25 of Public Act 299 of 1980, published in ch. 384 . The Board of Real Estate Brokers and Salespersons, part of the Department of Commerce, approves forms; these are listed on: http://www.dleg.state.mi.us/dms/results.asp?docowner=BCSC&doccat=Real+Estate&doccata=LicDiv&Search=Search . No information was found regarding licensees providing legal advice.

Summary of factual data and analytical methodologies

The primary purpose of the proposed rule is to update and clarify rule provisions to reflect current practice. Other than the Board undertaking a review of their rules, no specific data or analytical methodology was used.

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

Data was obtained from the Division of Professional Credential Processing regarding the number of licensees that would be affected by this regulatory change. As of 4/15/2013, there were 6,139 active licensed real estate salespersons and 10,373 active licensed real estate brokers. There were 1,051 licensed real estate business entities. The majority of real estate licensees work in small business environments; however, the proposed rules do not include any policy changes which would impact licensees or small business.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

This rule will not have a significant adverse effect on small business.

Effect on Small Business

These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1) , Stats. The Department's Regulatory Review Coordinator may be contacted by email at [e-mail] , or by calling [phone].

Agency Contact Person

Jean MacCubbin, Program Manager

Department of Safety and Professional Services, Division of Policy Development

1400 East Washington Avenue, Room 151

P.O. Box 8935

Madison, WI 53708-8935

Telephone: [phone]

Email: [e-mail]

Telecommunications relay services: at 711

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapter REEB 16, Approved Forms and Legal Advice.
3. Subject
Update definitions, clarify use of forms, update forms listing, and make minor corrections.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			s. 20.165 (1) (g), Stats.
6. 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 Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
With the exception of renumbering the chapter to REEB 16, the chapter had not been revised since 1986. Numerous terms are being added and clarity is proposed where needed.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Licensees, real estate brokers, and salespersons.
11. Identify the local governmental units that participated in the development of this EIA.
None known.
12. 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 are no new or increased costs associated with the promulgation of these rules on any of the business sectors listed.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The proposed rule will use common terminology and contemporary practices specific to the real estate industry.
14. Long Range Implications of Implementing the Rule
By promulgating these proposed revisions, the rule is not expected to need further revisions in the long-term.
15. Compare With Approaches Being Used by Federal Government
Few Federal forms are mandated for use by the states; exceptions being HUD-transactions, federally-backed mortgages, and radon disclosure.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
IL, MI, and MN regulate and license the real estate industry through a board or a commission that approves forms for real estate licensees to use; IA does not.
17. Contact Name				18. Contact Phone Number
Jean MacCubbin				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Workforce Development

Unemployment Insurance, Chs. DWD 100-150

EmR1316 and CR 13-081

The Wisconsin Department of Workforce Development (DWD) announces that it will hold joint public hearings on an emergency rule and permanent rule relating to unemployment insurance work registration, work search, and benefit claiming procedures.

Hearing Information

Date:   Monday, November 4, 2013
Time:   11:00 a.m. to 2:00 p.m.
Locations:   Milwaukee State Office Building
  819 North 6th Street
  Room 312
  Milwaukee, WI 53203

  Fox Valley Hearing Office
  54 Park Place
  Suite 800, Room 2
  Appleton, WI 54914

  Department of Workforce Development
  Division of Unemployment Insurance
  201 East Washington Ave.
  Room H305
  Madison, WI 53703

Appearances at the Hearing, Copies of Proposed Rule, and Submittal of Written Comments

DWD will hold a public hearing at the three locations indicated on November 4, 2013, from 11:00 a.m. to 2:00 p.m. Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing. Written comments will be accepted until Friday, November 8, 2013 . Comments may be sent to the Division of Unemployment Insurance at the address below, or to [e-mail] , or to http://adminrules.wisconsin.gov .

Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call [phone] at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.

You can obtain a free copy of the emergency rule, hearing draft rule, and related documents including the economic impact analysis by contacting the Wisconsin Department of Workforce Development, Division of Unemployment Insurance, Bureau of Legal Affairs, 201 E. Washington Avenue, Madison, WI 53703. You can also obtain a copy by calling [phone] or by emailing [e-mail] . Copies will also be available at the hearings. To view the emergency rule and hearing draft rule online, go to: http://adminrules.wisconsin.gov .

Comments or concerns relating to small business may also be addressed to DWD's small business regulatory coordinator Howard Bernstein at the address above, or by email to [e-mail] , or by telephone at [phone].

Analysis Prepared by the Department

Statutes interpreted

Chapter 108 , Stats.

Statutory authority

Sections 108.04 , 108.08 , 108.09 , and 108.14 , Stats.

Explanation of statutory authority

DWD has specific and general authority to establish rules interpreting and clarifying provisions of ch. 108 , Stats., unemployment insurance and reserves. DWD has general authority for promulgating rules with respect to ch. 108 , Stats., under s. 108.14 (2) , Stats. 2013 Wisconsin Act 20 amended s. 108.04 (2) (a) 2. , Stats., to provide that unemployment insurance claimants registration for work shall be done as directed by DWD. Section 108.04 (2) (b) provides DWD may prescribe rules that unemployment insurance claimants must follow to register work and search for work and may by general rule waive these requirements under certain stated conditions. Under s. 108.08 (1) , Stats., in order to receive benefits, claimants shall give notice to DWD with respect to the claimants' unemployment. The statute provides that the method used by claimants to provide notice of their unemployment shall be prescribed by rule of DWD. Under s. 108.09 (1) , Stats., claims for benefits shall be filed pursuant to rules prescribed by DWD.

Related statutes or rules

Chapter 108 , Stats., governs the state's unemployment insurance system. Section 108.04 , Stats. provides the primary eligibility requirements an unemployed person must satisfy in order to qualify for benefits. Section 108.04 (2) , Stats., provides a claimant is eligible for benefits as to any given week only if the individual is able to work and available for work during that week, the individual has registered for work as directed by DWD, and the individual conducts a reasonable search for suitable work during that week. Moreover, it provides that a claimant must make available information or job application materials that are requested by DWD.

Plain language analysis

The permanent and emergency rules modify existing rules by simplifying and clarifying the intent of the administrative code provisions surrounding registration and work search requirements for an unemployment insurance claimant. Also, emergency rule modification enables DWD to be able to adapt work registration and work search requirements as advances in technology make changes possible and necessary. Moreover, emergency rule changes facilitate DWD's ability to audit the work search efforts of unemployment insurance claimants as required by the newly enacted statutory provision s. 108.14 (20) , Stats., that was created by 2013 Wisconsin Act 36 . In addition, the existing administrative rules provide for waivers from the work search requirement. The permanent and emergency rule amendments decrease and narrow the remaining waivers.

The permanent and emergency rule changes will streamline the ability of DWD to ensure that individuals receiving unemployment insurance benefits are actively seeking work to become reemployed. This emergency rule modification will also strengthen DWD's objective that those receiving unemployment insurance are engaging in activities that constitute a reasonable effort to obtain employment.

The permanent and emergency rule amendments clarify that DWD has the authority to request information from claimants to assist them in finding employment. More specifically, the amendments to ch. DWD 129 grant DWD the flexibility to implement improvements with respect to the claims filing procedures. DWD also plans to adopt a permanent rule to revise chs. DWD 126 , 127 , and 129 .

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

Unemployment insurance was initiated on a national basis in the United States as Title III and Title IX of the Social Security Act of 1935 and is a Federal-State coordinated program. Each state administers its own program within national guidelines promulgated under federal law. As a condition of a state receiving its unemployment compensation administrative grant, 42 USC 503 (a) provides that the Secretary of Labor must find that the law of the state includes certain requirements. Specifically, 42 USC 503 (a) (12) provides that state laws must have as a condition of eligibility for unemployment insurance that claimants must be able to work, available to work, and actively seeking work. Moreover, 42 USC 503 (a) (10) provides that state laws must require that if claimants have been referred for reemployment services or similar services, to remain eligible for unemployment insurance benefits claimants must complete such services or there must be justifiable cause for the claimants failing to participate in such services.

Comparison with rules in adjacent states

As the Department of Labor's Comparison of State UI Laws states: "[i]n addition to registration for work at a local employment office, all states … , whether by law or practice, require that a worker be actively seeking work or making a reasonable effort to obtain work." The amendments to the rules bring Wisconsin's rules more in line with neighboring states' initiatives to facilitate unemployment insurance claimants' ability to find employment.

Benefit Claiming Procedure

Illinois	Each claimant shall file his or her claim by telephone. The only exception is if the claimant files his or her claim by mail. To file a claim by mail the claimant must: speak neither English nor Spanish; be hearing impaired; or have no reasonable access to a touch-tone telephone. (56 Il. Adm. Code 2720.112)
Indiana	A claimant must report on their job search on a weekly basis via submission of the online claim form, or in any other manner as required by the department. (646 IN 5-9-4 Administrative Code) A claimant is not eligible for benefits in any week unless he or she has filed a claim for benefits and reports to the department each week that he or she continues to meet all eligibility requirements. A claimant's claim for benefits, and weekly report to the department, must be filed in the form and manner prescribed by the department. (646 IN 5-9-2 Administrative Code)
Iowa	An individual may file an initial claim for unemployment benefits by telephone, in person or other means prescribed by the department or may call the service center during regular business hours. Claims filed in accordance with this rule shall be deemed filed as of Sunday of the week in which the claim is filed, but must register for work at a workforce development center (IA 871-24.2 (96)) Administrative Code
Michigan	Claims for benefits shall be made pursuant to regulations prescribed by the unemployment agency. The unemployment agency shall designate representatives who shall promptly examine claims and make a determination on the facts. (M.C.L.A. 421.32) An individual shall file a new, additional, or reopened claim or shall report to file a continued claim as directed by the agency. ( Mich. Admin. Code R. 421.210 (3))
Minnesota	An application for unemployment benefits may be filed in person, by mail, or by electronic transmission as the unemployment insurance agency may require. (M.S.A. s. 268.07 Statutes Annotated) The unemployment insurance agency shall notify the claimant of the method that should be used to make ongoing claims for benefits. The first method is through electronic transmission which means the claims may be filed by electronic mail address, telephone number, or Internet address prescribed by the commissioner for that claimant. The other method that the unemployment insurance agency may designate for the claimant is for the claim to be filed by mail. (M.S.A. s. 268.0865 Statutes Annotated)

Work Search Requirements

Illinois	Unless otherwise instructed, a claimant must establish that he or she is able to work, available for work and actively seeking work during each week for which he or she is claiming benefits. The claimant must show that he or she is conducting a thorough, active and reasonable search for appropriate work on his or her own by keeping records of what he or she is doing to find work. (56 Il. Adm. Code 2865.100)
Indiana	To establish an effort to secure full-time work, a claimant is required to search for three (3) positions in each week for which benefits are claimed. (646 IN 5-9-3 Administrative Code)
Iowa	The Iowa law specifies that an individual must earnestly and actively seek work. This is interpreted to mean that a registration for work at a workforce development center or state employment service office in itself does not meet the requirements of the law. Nor is it interpreted to mean that every individual must make a fixed number of employer contacts each week to establish eligibility. The number of contacts that an individual must make is dependent upon the condition of the local labor market, the duration of benefit payments, a change in claimant characteristics, job prospects in the community, and such other factors as the department deems relevant. (IA 871-24.22 (96) f.

Administrative Code)

Michigan

The claimant has registered for work and has continued to report in accordance with unemployment agency rules and is actively engaged in seeking work. Except for a period of disqualification, the requirement that the claimant shall seek work may be waived by the unemployment agency if it finds that suitable work is unavailable both in the locality where the individual resides and in those localities in which the individual has earned wages during or after the base period, an otherwise eligible individual shall not be ineligible for benefits because he or she is participating in training with the approval of the unemployment agency. (M.C.L.A. 421.28)

Minnesota

An applicant may be eligible to receive unemployment benefits for any week if the applicant was actively seeking suitable employment. "Actively seeking suitable employment" means those reasonable, diligent efforts an individual in similar circumstances would make if genuinely interested in obtaining suitable employment under the existing conditions in the labor market area. Limiting the search to positions that are not available or are above the applicant's training, experience, and qualifications is not "actively seeking suitable employment."

(M.S.A. s. 268.085 Statutes Annotated)

Registration for Work Requirements

Illinois

•   A claimant must register with the Illinois Employment Service unless otherwise instructed by the local office. There are ten circumstances in which a claimant will not be required to register with the Illinois Employment Service (56 Il. Adm. Code 2865.100) •   An unemployed individual shall be eligible to receive benefits with respect to any week only if he has registered for work at and thereafter, continues to report at an employment office in accordance with such regulations as may be prescribed. (820 ILCS 405/500 Compiled Statutes)

Indiana

•   Registration is required and accomplished through enrollment in the Indiana Career Connect (ICC) Database. (646 IN 5-9-1 Administrative Code) •   Claimant must register for work within ten (10) days of filing an initial claim for benefits. To enhance the registration, claimants should complete a resume and post online. (646 IN 5-9-1 Administrative Code)

•   An unemployed individual is eligible to receive benefits with respect to any week if the individual has registered for work at an employment office or branch thereof or other agency designated by the commissioner within the time limits that the department adopts by rule. (IC 22-4-14-2 Code)

Iowa

•   Unemployed persons must report in person to the nearest workforce development center and register for work. (IA 871-24.2 (96) Administrative Code)

•   An unemployed individual is eligible to receive benefits with respect to any week only if the department finds that the individual has registered for work at, and thereafter, continues to report to an employment office in accordance with regulations as the department prescribes. (I.C.A. s. 96.4 Code)

Michigan

•   A claimant shall register for work as instructed by the agency and fully and accurately supply information as to the claimant's past work experience and training and other personal data as may be necessary to assure that the claimant is considered for referral to any available suitable work. ( Mich. Admin. Code R. 421.208)

•   Unemployed workers must register and create a profile on www.mitalenet.org and report in person to verify their registration to any Michigan Works! Agency Service Center no later than three (3) business days before their first contact to file a claim. Claimants must retain form of verification as proof of registration of work for one year. (Fact sheet #76 Work Registration Needed for Jobless Benefits)

Minnesota

•   An applicant may be eligible to receive unemployment benefits for any week if the applicant was available for suitable employment. (M.S.A. s. 268.085 Statutes Annotated)

Summary of factual data and analytical methodologies

The permanent and emergency rules do not depend on any complex analysis of data. Instead, the changes to the rules represent common sense amendments that will assist unemployment insurance claimants to provide additional information to DWD in order that DWD may better assist them in returning to work.

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

The permanent and emergency rule will have a positive impact on employers and unemployment insurance claimants.

Effect on Small Business

The permanent and emergency rules do not have any small business requirements but is expected to benefit all employers, including small business. First, the permanent and emergency rules are projected to result in more unemployment insurance claimants finding employment faster. As a result, unemployed individuals will be collecting unemployment insurance benefits for a shorter duration and there will be fewer charges to employers' unemployment insurance accounts. This will result in employers having to pay lower amounts of unemployment tax. Second, more unemployed individuals will be required to seek employment and those unemployed individuals who already were required to seek employment will likely be assisted better by DWD in applying for appropriate jobs. As a result, there are likely to be more and better job applications for employers to review as more employers seek to hire individuals.

Agency Contact Person

Questions and comments related to this rule may be directed to:

Janell Knutson

Department of Workforce Development

Division of Unemployment Insurance

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P.O. Box 8942

Madison, WI 53708-8942

Telephone: [phone]

E-Mail: [e-mail]

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2050 (C04/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
EXISTING ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
⍽ Repeal   X Modification
2. Administrative Rule Chapter, Title and Number
DWD s. 126 (Work Registration), 127 (Work Search), and 129 (Benefit Claiming Procedures), unemployment insurance requirements for claimants.
3. Date Rule promulgated and/or revised; Date of most recent Evaluation
•   DWD s. 126 was originally ILHR s. 126. ILHR s. 126 was created by emergency rule and was effective January 8, 1984 and ILHR s. 126 was renumbered DWD s. 126 pursuant to s. 13.93 (2m) (b) 1., Stats. DWD s. 126 was last amended September of 2000. •   DWD s. 127 was originally ILHR s. 127. ILHR s. 127 was created by emergency rule and was effective January 8, 1984 and ILHR s. 127 was renumbered DWD s. 127 pursuant to s. 13.93 (2m) (b) 6. and 7., Stats. DWD s. 127 was last amended December of 2006. •   DWD s. 129 was originally ILHR s. 129. ILHR s. 129 was created by emergency rule and was effective January 8, 1984 and ILHR s. 129 was renumbered DWD s. 129 pursuant to s. 13.93 (2m) (b) 1., Stats. DWD s. 129 was last amended September of 2010.
4. Plain Language Analysis of the Rule, its Impact on the Policy Problem that Justified its Creation and Changes in Technology, Economic Conditions or Other Factors Since Promulgation that alter the need for or effectiveness of the Rule.
The rule modifies existing rules by simplifying and clarifying the intent of the administrative code provisions surrounding registration and work search requirements for an unemployment insurance claimant. Also the rule modification enables the Department of Workforce Development (DWD) to adapt work registration and work search requirements as advances in technology make changes possible and necessary. Moreover, the rule changes facilitate DWD's ability to audit the work search efforts of unemployment insurance claimants as required by the newly enacted statutory provision s. 108.14 (20), Stats., that was created by 2013 Wisconsin Act 36. In addition, the existing administrative rules provide for waivers from the work search requirement. The rule amendments decrease and narrow the remaining waivers. The rule changes will streamline the ability of DWD to ensure that individuals receiving unemployment insurance benefits are actively seeking work to become reemployed. The rule modification will also strengthen DWD's objective that claimants are engaging in activities that constitute a reasonable effort to obtain employment. The rule amendments clarify that DWD has the authority to request information from claimants to assist them in finding employment. More specifically, the amendments to DWD s. 129 grant DWD the flexibility to implement improvements with respect to claims filing procedures.
5. Describe the Rule's Enforcement Provisions and Mechanisms
There are a number of enforcement mechanism for these rules: •   If an unemployment insurance claimant does not adhere to the benefit claiming procedures, work registration requirements, and work search requirements, the claimant may be determined to be ineligible for unemployment insurance benefits. •   If an unemployment insurance claimant conceals any material fact relating to his or her eligibility for benefits including the requirements of DWD ss. 126, 127, or 129, for: (1)   Each single act of concealment a claimant is ineligible for benefits in an amount equivalent to two times his or her weekly benefit rate; (2)   Each single act of concealment occurring after the first act of concealment a claimant is ineligible for benefits in an amount equivalent to four times his or her weekly benefit rate; and, (3)   Each single act of concealment occurring after the date of the second or subsequent determination of concealment a claimant is ineligible for benefits in an amount equivalent to eight times his or her weekly benefit rate. The ineligibility for benefit framework for acts of concealment is contained in s. 108.04 (11) (be), Stats. •   In addition to the ineligibility for benefits noted above, if an unemployment insurance claimant conceals any material fact relating to his or her eligibility for benefits including the requirements of DWD §§ 126, 127, or 129, the claimant will be charged a penalty of fifteen percent of the benefit payments erroneously paid to the claimant as a result of the act of concealment. The penalty framework for acts of concealment is pursuant to s. 108.04 (11) (bh), Stats.
6. Repealing or Modifying the Rule Will Impact the Following (Check All That Apply) X State's Economy X Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers X Small Businesses
7. Summary of the Impacts, including Compliance Costs, identifying any Unnecessary Burdens the Rule places on the ability of Small Business to conduct their Affairs.
These rule amendments do not have any small business requirements but are expected to benefit all employers, including small business. First, the amendments are projected to result in more unemployment insurance claimants becoming reemployed sooner. As a result, unemployed individuals will be collecting unemployment insurance benefits for a shorter duration and there will be fewer charges to employers' unemployment insurance accounts. This will assist employers by reducing unemployment insurance tax. Second, more unemployment insurance claimants will be required to search for work and DWD will better be able to assist claimants who already are required to seek employment. Consequently, there are likely to be more and better job applications for employers to review as more employers seek to hire individuals.
8. List of Small Businesses, Organizations and Members of the Public that commented on the Rule and its Enforcement and a Summary of their Comments.
DWD posted the scope statement and proposed hearing draft on DWD's website and on the Wisconsin Administrative Rules' website for 14 days to solicit public comment on the economic impact of the rule. DWD did not receive any comments.
9. Did the Agency consider any of the following Rule Modifications to reduce the Impact of the Rule on Small Businesses in lieu of repeal?
⍽ Less Stringent Compliance or Reporting Requirements ⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting ⍽ Consolidation or Simplification of Reporting Requirements ⍽ Establishment of performance standards in lieu of Design or Operational Standards ⍽ Exemption of Small Businesses from some or all requirements ⍽ Other, describe:
10. Fund Sources Affected			11. Chapter 20, Stats. Appropriations Affected
⍽ GPR   X FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			s. 20.115 (1) (q), Stats.
12. Fiscal Effect of Repealing or Modifying the Rule
⍽ No Fiscal Effect X Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
13. Summary of Costs and Benefits of Repealing or Modifying the Rule
The rule amendments will make the rules consistent with the newly enacted legislation and update and modernize existing requirements with respect to claim filing procedures and work search and work registration requirements. The rule changes will strengthen the requirements for unemployed individuals to actively seek employment and thereby improve their employment prospects and align the job search requirements with the underlying goal of the unemployment insurance program. The amendments accomplish this by: •   Providing explicit authority for DWD to require unemployment insurance claimants to provide information to DWD to facilitate their reemployment efforts; •   Updating actions by claimants that will be considered to constitute a reasonable search for suitable work; •   Decreasing and fine-tuning the remaining the circumstances in which DWD will waive the requirement that claimants to receive unemployment insurance benefits must perform work search actions; and, •   Enhancing the procedures required to file claims for benefits in order to facilitate the ability of DWD to assist claimants find employment.
14. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)
⍽ Yes X No
15. Long Range Implications of Repealing or Modifying the Rule
These rule amendments are projected to have a positive economic impact. The increase in the requirement for work search activities will likely decrease charges to the Unemployment Insurance Trust Fund due to individuals obtaining employment sooner or being disqualified from receiving unemployment insurance benefits for not actively seeking work. This will have a positive economic impact on employers due to fewer charges to their unemployment insurance accounts. As a result, employers will be charged a lower rate of unemployment insurance tax.
16. Compare With Approaches Being Used by Federal Government
The unemployment insurance program was initiated on a national basis in the United States as Title III and Title IX of the Social Security Act of 1935 and is a Federal-State coordinated program. Each state administers its own program within national guidelines promulgated under federal law. As a condition of a state receiving its unemployment compensation administrative grant, 42 USC s. 503 (a) provides that the Secretary of Labor must find that the law of each state includes certain requirements. Specifically, 42 USC s. 503 (a) (12) provides that state laws must have as a condition of eligibility for unemployment insurance that claimants must be able to work, available to work, and actively seeking work. Moreover, 42 USC s. 503 (a) (10) provides that state laws must require that if claimants have been referred for reemployment services or similar services, to remain eligible for unemployment insurance benefits claimants shall complete such services or there must be justifiable cause for the claimants failing to participate in such services.
17. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
As the Department of Labor's Comparison of State UI Laws states: "[i]n addition to registration for work at a local employment office, all states … , whether by law or practice, require that a worker be actively seeking work or making a reasonable effort to obtain work." The amendments to the rules bring Wisconsin's policies more in line with neighboring states' initiatives to facilitate unemployment insurance claimants' ability to find employment. Benefit Claiming Procedure •   Illinois     Each claimant shall file his or her claim by telephone. The only exception is if the claimant files his or her claim by mail. To file a claim by mail the claimant must: speak neither English nor Spanish; be hearing impaired; or have no reasonable access to a touch-tone telephone. (56 Il. Adm. Code 2720.112) •   Iowa   An individual may file an initial claim for unemployment benefits by telephone, in person or other means prescribed by the department or may call the service center during regular business hours. Claims filed in accordance with this rule shall be deemed filed as of Sunday of the week in which the claim is filed, but a claimant must register for work at a workforce development center (IA 871-24.2 (96) Administrative Code)
•   Michigan Claims for benefits shall be made pursuant to regulations prescribed by the unemployment insurance agency. The unemployment insurance agency shall designate representatives who shall promptly examine claims and make a determination on the facts. (M.C.L.A. 421.32) An individual shall file a new, additional, or reopened claim or shall report to file a continued claim as directed by the agency. (Mich. Admin. Code R. 421.210 (3)) •   Minnesota   An application for unemployment insurance benefits may be filed in person, by mail, or by electronic transmission as the unemployment insurance agency may require. (M.S.A. s. 268.07 Statutes Annotated) The unemployment insurance agency shall notify the claimant of the method that should be used to make ongoing claims for benefits. The first method is through electronic transmission which means the claims may be filed by electronic mail address, telephone number, or Internet address prescribed by the commissioner for that claimant. The other method that the unemployment insurance agency may designate for the claimant is for the claim to be filed by mail. (M.S.A. s. 268.0865 Statutes Annotated) Work Search Requirements •   Illinois   Unless otherwise instructed, a claimant must establish that he or she is able to work, available for work and actively seeking work during each week for which he or she is claiming benefits. The claimant must show that he or she is conducting a thorough, active and reasonable search for appropriate work on his or her own by keeping records of what he or she is doing to find work. (56 Il. Adm. Code 2865.100) •   Iowa   The Iowa law specifies that an individual must earnestly and actively seek work. This is interpreted to mean that a registration for work at a workforce development center or state employment service office in itself does not meet the requirements of the law. Nor is it interpreted to mean that every individual must make a fixed number of employer contacts each week to establish eligibility. The number of contacts that an individual must make is dependent upon the condition of the local labor market, the duration of benefit payments, a change in claimant characteristics, job prospects in the community, and such other factors as the department deems relevant. (IA 871-24.22 (96) f. Administrative Code) •   Michigan   The claimant has registered for work and has continued to report in accordance with unemployment agency rules and is actively engaged in seeking work. Except for a period of disqualification, the requirement that the claimant shall seek work may be waived by the unemployment insurance agency if it finds that suitable work is unavailable both in the locality where the individual resides and in those localities in which the individual has earned wages during or after the base period. An otherwise eligible individual shall not be ineligible for benefits because he or she is participating in training with the approval of the unemployment agency. (M.C.L.A. 421.28) •   Minnesota   An applicant may be eligible to receive unemployment benefits for any week if the applicant was actively seeking suitable employment. "Actively seeking suitable employment" means those reasonable, diligent efforts an individual in similar circumstances would make if genuinely interested in obtaining suitable employment under the existing conditions in the labor market area. Limiting the search to positions that are not available or are above the applicant's training, experience, and qualifications is not "actively seeking suitable employment." (M.S.A. s. 268.085 Statutes Annotated)
Registration for Work Requirements •   Illinois   A claimant must register with the Illinois Employment Service unless otherwise instructed by the local office. There are ten circumstances in which a claimant will not be required to register with the Illinois Employment Service (56 Il. Adm. Code 2865.100) An unemployed individual shall be eligible to receive benefits with respect to any week only if he or she has registered for work at and thereafter, continues to report at an employment office in accordance with such regulations as may be prescribed. (820 ILCS 405/500 Compiled Statutes) •   Iowa   Unemployed persons must report in person to the nearest workforce development center and register for work. (IA 871-24.2 (96) Administrative Code) An unemployed individual is eligible to receive benefits with respect to any week only if the department finds that the individual has registered for work at, and thereafter, continues to report to an employment office in accordance with regulations as the department prescribes. (I.C.A. s. 96.4 Code) •   Michigan   A claimant shall register for work as instructed by the agency and fully and accurately supply information as to the claimant's past work experience and training and other personal data as may be necessary to assure that the claimant is considered for referral to any available suitable work. (Mich. Admin. Code R. 421.208) Unemployed workers must register and create a profile on www.mitalenet.org and report in person to verify their registration to any Michigan Works! Agency Service Center no later than three (3) business days before their first contact to file a claim. Claimants must retain verification form as proof of registration of work for one year. (Fact sheet #76 Work Registration Needed for Jobless Benefits) •   Minnesota   An applicant may be eligible to receive unemployment insurance benefits for any week if the applicant was available for suitable employment. (M.S.A. s. 268.085 Statutes Annotated)
18. Contact Name				19. Contact Phone Number
Janell Knutson				[phone]

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Workforce Development

Employment and Training, Chs. DWD 805-830

EmR1317

NOTICE IS HEREBY GIVEN that pursuant to section 227.24 (4) , Stats., the Department of Workforce Development will hold a public hearing to review the emergency rule relating to workforce training grants under the Wisconsin Fast Forward program.

Hearing Information

Date:   Tuesday, November 5, 2013
Time:   10:00 a.m.
Locations:   G.E.F. 1 Building, B 105
  201 East Washington Ave.
  Madison, WI

Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.

Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call [phone] at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.

Written Comments and Deadline for Submission

Written comments may be submitted to Howard Bernstein, Office of Legal Counsel, Dept. of Workforce Development, P.O. Box 7946, Madison, WI 53707-7946 or by email to [e-mail] . The deadline for submission is November 8, 2013 . Written comments will be given the same consideration as testimony presented at the hearing.

Copies of Rule

The proposed rules are available at the website http://adminrules.wisconsin.gov . This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper or electronic copy of the rule by contacting Howard Bernstein at the addresses given above or by telephone at [phone].

Analysis Prepared by the Department

Statutory authority

Sections 103.005 (1) and 106.27 (2g) , Stats.

Statute interpreted

Section 106.27 , Stats.

Explanation of agency authority

2013 Wisconsin Act 9 creates a program in the Department of Workforce Development (DWD) for the development and implementation of workforce training grants to be used for the training of unemployed and underemployed workers in this state or for the training of incumbent employees of businesses in this state.

Act 9 mandates that grantees report to DWD regarding how grant money was used and the outcomes achieved, and requires DWD to promulgate rules prescribing the information to be contained in these reports. It also requires DWD to create grant application forms, procedures, and criteria, and permits DWD to audit and inspect the records of grantees.

Summary of the proposed rule

This rule establishes the general criteria, procedures, requirements and conditions for the award of Wisconsin Fast Forward workforce training grants. It allows for grant applications from any public or private organization, including an employer or an economic development agency or training provider that is working with an employer.

The rule provides for the solicitation of applications for grants in the form of Grant Program Announcements (GPAs). Each grant applicant will be asked to provide information about itself and a description of the its proposed training program, including the proposed program budget and the proposed matching funds to be provided by the applicant.

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The proposed rule provides that grant applications shall receive a preliminary review to ensure that they meet the basic requirements of the GPA. Applications which satisfy this review shall then be evaluated and ranked in relation to a series of factors relating to the capability of the applicant, the specifics of the proposal, and the potential economic and workforce capacity impacts of the proposal. The Department may also consider factors such as underserved populations and geographic areas.

The rule establishes an overall procedure for awarding grants and guidelines for grant administration, the use of grant funds and the provision of matching funds by grantees. Each grantee will be required to report on the use and effect of the grant funds in terms of information on the number of trainees, the trainees that have completed the program, and whether trainees have obtained new employment with increased wages or increased hours of work.

Summary of analytical methodology

The rules of other public grant programs were reviewed as part of the process for developing this proposed rule. No other data or analysis was needed.

Comparison to federal law

The federal Workforce Investment Act of 1998 provides funding for employment and training programs to the state with the guidance of the State Council for Workforce Investment. Grant allocations go to 11 regional workforce development boards, which fund and supervise local programs. P rograms for employment placement and retention, job training, and education-related training are delivered through the Wisconsin Job Centers.

Comparison with statutes and rules in adjacent states

Minnesota. The Minnesota Job Skills Partnership Program is a state grant program which links state businesses with colleges, technical colleges, and universities to provide skill development training to workers. Approximately 70% of the grants go to state manufacturers; the next most numerous category is health care industries. It is a financial match program in which employers provide approximately 2 dollars for every public dollar provided. Partnership grants are awarded in amounts up to $400,000. About 80% of the grants are awarded to Colleges and Technical Colleges within the Minnesota State Community and Technical College system.

Illinois. The Illinois Department of Commerce and Economic Opportunity, Office of Business Development, offers a grant program entitled Employer Training Investment Program. Grants may be awarded to individual businesses or to intermediary organizations operating multi-company training programs. The grants are intended to enable companies to remain competitive, expand into new markets or introduce more efficient technology. ETIP grants may reimburse Illinois companies for up to 50 percent of the eligible cost of training their employees. In fiscal year 2010 this program gave out 15 grants totaling $6.4 million ranging from $60,000 to $1.1 million.

Iowa. The Skilled Iowa Initiative offers assessments, certification programs and internships in cooperation with public schools, community colleges, and universities, to work with employers seeking to expand the number of available "middle-skill" workers.

Michigan. The Michigan Industry Cluster Approach strategy focuses on five industry clusters (agriculture, energy, healthcare, information technology, and manufacturing) and works with employers to identify industry demand and vacancies, and provide input into the design of educational program offerings and skills requirements. The state's policy is to aligns services and programs with the identified needs for workers and skills. Programs are listed on Michigan's "WIA Eligible Training Provider List" based on input from employers.

Analysis used to determine effect on small business

The analysis is based upon the text of 2013 Wisconsin Act 9 and the proposed rule.

Effect on Small Business

The proposed rule has no effect on a small business that does not apply for a workforce training grant. Any business that chooses to apply for a grant, with or without partners, will have to comply with the administration and reporting requirements of the rule and the grant agreement.

Agency Contact for Program Issues

Dennis C. Schuh, Program Manager

DWD Office of Skills Development

P.O. Box 7946

Madison, WI 53707

[phone]

[e-mail]

Agency Contact for Rulemaking Issues

Howard Bernstein, DWD Legal Counsel

P.O. Box 7946

Madison, WI 53707

[phone]

[e-mail]

STATE OF WISCONSIN 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
Chapter DWD 801
Subject
Workforce Training Grants under s. 106.27 (2g), Stats.
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
The proposed rule implements the requirement in s. 106.27(2g), Stats., that DWD promulgate rules prescribing procedures and criteria for awarding grants and the information that must be contained in the reports that are required from the grantees.
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 proposed rule does not create any costs in the administration of the workforce training grants program that are independent of the fiscal effect of 2013 Wisconsin Act 9 (2013 Assembly Bill 14), which created the program. A copy of the fiscal estimate for AB 14/Act 9 is attached.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The rule simply carries out the instructions of the statute.
Long Range Implications of Implementing the Rule
None distinct from the statute.
Compare With Approaches Being Used by Federal Government
The rule analysis contains a comparison to the federal Workforce Investment Act.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
These comparisons are also in the rule analysis.
Name and Phone Number of Contact Person
Howard Bernstein, Legal Counsel, DWD [phone]

							2013 Session
							LRB or Bill No./Adm. Rule No.
ORIGINAL

⍽   UPDATED

DWD 801

FISCAL ESTIMATE   ⍽   CORRECTED   ⍽   SUPPLEMENTAL

DOA-2048 N(R03/97)

Amendment No. if Applicable

Subject

Wisconsin Fast Forward Workforce Training Grants

Fiscal Effect

  State:   No State Fiscal Effect

  Check columns below only if bill makes a direct appropriation

⍽ Increase Costs - May be possible to Absorb

    or affects a sum sufficient appropriation.

Within Agency's Budget ⍽ Yes ⍽ No

  ⍽ Increase Existing Appropriation   ⍽ Increase Existing Revenues

  ⍽ Decrease Existing Appropriation   ⍽ Decrease Existing Revenues

⍽ Decrease Costs

  ⍽ Create New Appropriation

Local:   No local government costs

1.

⍽ Increase Costs

3.   ⍽   Increase Revenues

5.   Types of Local Governmental Units Affected:

  ⍽ Permissive   ⍽ Mandatory

  ⍽ Permissive   ⍽ Mandatory

⍽ Towns   ⍽ Villages   ⍽ Cities

2.

Decrease Costs

4.   ⍽   Decrease Revenues

⍽ Counties   ⍽ Others _____

  ⍽ Permissive   ⍽ Mandatory

  ⍽ Permissive   ⍽ Mandatory

⍽ School Districts   WTCS Districts

Fund Sources Affected

  ⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S

Affected Ch. 20 Appropriations

Assumptions Used in Arriving at Fiscal Estimate

The proposed rule does not create any costs in the administration of the Wisconsin Fast Forward workforce training grants program that are independent of the fiscal effect of 2013 Wisconsin Act 9 (2013 Assembly Bill 14), which created the program.

A copy of the fiscal estimate for AB 14/Act 9 is attached.

Impact on businesses:

A business is not required to comply with the proposed rule unless it applies for a workforce training grant. A business that applies for and receives a workforce training grant will be required to file reports to verify that it has incurred expenses that are allowable and reimbursable under the grant, and it will also be required to file reports documenting the results of the grant in terms of employee participation and improvement in qualifications.

Long-Range Fiscal Implications

None

Agency/Prepared by: (Name & Phone No.)

Authorized Signature/Telephone No.

Date

DWD/Howard Bernstein [phone]

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