CR_14-010 Revises Chapters SPS 131, 132, 133, 134, 135, 305, 323, 332, 334, and 361, relating to trades licenses, certifications, and registrations of trades credentials; continuing education requirements of home inspectors; and rule changes ...

Life and fraternal insurers licensed in Wisconsin.

b. Description of reporting and bookkeeping procedures required:

None beyond those currently required.

c. Description of professional skills required:

None beyond those currently required.

Oci Small Business Regulatory Coordinator

The OCI small business coordinator is Louie Cornelius, who may be reached at phone number [phone] or at e-mail address [e-mail] .

Agency Contact Person

A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the Web site at: http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, OCI Services Section, at:

Phone: [phone]

Email: [e-mail]

Address: 125 South Webster St – 2 nd Floor, Madison WI 53703-3474

Mail: PO Box 7873, Madison, WI 53707-7873

Proposed Rule Changes

SECTION 1. Ins 2.80 (4) (b) 3 . b. and c., are repealed.

SECTION 2. Ins 2. 80 (4) (b) 3. g. and i., are amended to read:

Ins 2.80 (4) (b) 3. g. The appointed actuary may decrease X at any valuation date as long as X does not decrease in any successive policy years and as long as it continues to meet all the requirements of this subdivision.

Ins 2.80 (4) (b) 3. i. If X is less than 100% at any duration for any policy, the appointed actuary shall annually prepare an actuarial opinion and memorandum for the company in conformance with the requirements of s. Ins 50.78 ; the appointed actuary shall disclose in the Regulatory Asset Adequacy Issues Summary the impact of the insufficiency of assets to support the payment of benefits and expenses and the establishment of statutory reserves during one or more interim periods; and the appointed actuary shall annually offer an opinion for all policies subject to this section as to whether the mortality rates resulting from the application of X meet the requirements of this subdivision. This opinion shall be supported by an actuarial report, subject to appropriate actuarial standards of practice promulgated by the actuarial standards board of the American academy of actuaries. It shall reflect anticipated future mortality, without recognition of mortality improvement beyond the valuation date, taking into account relevant emerging experience.

SECTION 3. Chapter Ins. 2 Table of Select Mortality Factors is repealed.

SECTION 4. Ins 50.79 (1) (f) is created to read:

Ins 50.79 (1) (f) An insurer licensed but not domiciled in this state shall provide the office of the commissioner of insurance a regulatory asset adequacy issues summary described under par. (e) upon request.

SECTION 5. Ins 50.79 (3) (a) 4. is amended to read:

Ins 50.79 (3) (a) 4. Comments on any interim results that may be of significant concern to the appointed actuary . , for example, the impact of the insufficiency of assets to support the payment of benefits and expenses and the establishment of statutory reserves during one or more interim periods.

SECTION 6. EFFECTIVE DATE. These changes shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats.

SECTION 7. These sections may be enforced under ss. 601.41 , 601.64 , 601.65 , 623.06 , or ch. 645 , Wis. Stats., or any other enforcement provision of chs. 600 to 646 , Wis. Stats.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (C04/2011)					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
1. Fiscal Estimate Version
X Original ⍽ Updated ⍽ Corrected
2. Administrative Rule Chapter Title and Number Ch. Ins. 2 Table; Ins 2.80 (4) (b) 3.; Ins 50.79 (1) (f); Ins 50.79 (3) (a) 4.
3. Subject Reserve Requirements for Life and Fraternal Insurers and Affecting Small Business
4. State Fiscal Effect
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues					⍽ Increase Costs   ⍽ Yes X No   May be possible to absorb       within agency's budget. ⍽ Decrease Costs
5.   Fund Sources Affected ⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S						6. Affected Ch. 20, Stats. Appropriations: None
7.   Local Government Fiscal Effect:
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Revenues ⍽ Decrease Revenues			⍽ Increase Costs ⍽ Decrease Costs
8.   Local Government Units Affected: ⍽ Towns ⍽ Villages ⍽ Cities ⍽ Counties ⍽ School Districts ⍽ WTCS Districts ⍽ Others: None
9.   Private Sector Fiscal Effect (small businesses only):

X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Revenues ⍽ Decrease Revenues Yes X No   May have significant     economic impact on a     substantial number of     small businesses		⍽ Increase Costs ⍽ Decrease Costs
10.   Types of Small Businesses Affected:
Domestic and foreign life or fraternal insurers that meet the definition of small businesses
11. Fiscal Analysis Summary
12. Long-Range Fiscal Implications
None
13.   Name - Prepared by Timothy L. Cornelius		Telephone Number [phone]		Date January 15, 2014
14.   Name – Analyst Reviewer		Telephone Number		Date
Signature—Secretary or Designee		Telephone Number		Date

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. Ins. 2 Table; Ins 2.80 (4) (b) 3; Ins 50.79 (3) (a) 4.
3. Subject
Reserve Requirements for Life and Fraternal Insurers and Affecting Small Business
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			None
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		X Specific Businesses/Sectors ⍽ Public Utility Rate Payers X 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
The proposed rule is intended to make four changes to the current regulations regarding reserve and reporting requirements for life and fraternal insurers that will modify outdated and unnecessary requirements as well as clarify ambiguous language contained in the current regulations. First, Section Ins 2.80, Wis. Admin. Code, establishes the minimum standards for life insurance policy reserves and the method for calculating the reserves. The existing rule includes requirements for a premium deficiency reserve, under which the company can incorporate "X" factors to adjust the mortality factor to a level that is based on the company's own mortality experience. Currently, under s. Ins 2.80 (4), Wis. Admin. Code, the X factors used in the calculation of deficiency reserves are subject to a minimum of 20% and cannot be decreased in any successive policy years. The changes contemplated for the proposed rule would remove these limits on the X factors, which the industry has demonstrated are no longer needed. Second, under sections Ins. 50.79 (3) (a) and s. Ins 2.80 (4) (b) 3., Wis. Admin. Code, insurers are required to file an annual Regulatory Asset Adequacy Issues Summary in which they must disclose the impact of cash flow insufficiencies projected to occur during the interim periods prior to the end of the test period. The current wording is somewhat ambiguous regarding the reporting requirements with respect to deficiencies in the interim periods. The anticipated changes add clarifying language that would improve the rule by eliminating reporting inconsistencies. Third, all licensed life and fraternal insurers must submit a confidential Regulatory Asset Adequacy Issues Summary annually to the Commissioner. Proposed changes to the language of s. Ins 50.79, Wis. Admin. Code, would not require foreign insurers (approximately 450 companies) to submit the Summary unless specifically requested by the Commissioner. This change would ease an unnecessary administrative burden on both OCI and foreign insurers. Finally, the proposed rule would repeal the table of select mortality factors at the end of ch. Ins 2, Wis. Admin. Code, which is outdated and unnecessary. Since the original rule was adopted a more accurate table contained in a NAIC model rule has been released, and is referenced in two places in s. Ins 2.80 (4), Wis. Admin. Code, pursuant to s. 601.41 (3)(b), Wis. Stats., which specifically grants OCI the authority to cross-reference NAIC tables. The mortality factors for calculating reserves contained within sub. (4) are more accurate, and are the correct factors insurers should use for their reserve calculations. Therefore the table at the end of ch. Ins. 2, Wis. Admin. Code, should be removed as it is outdated and unnecessary, and is likely to cause confusion and incorrect reserve calculations.
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.
OCI solicited comments generally through publication requesting comments from the public utilizing the OCI website. In addition, OCI solicited comments from the following businesses and associations: American Family Insurance Group; Farmers Insurance Group; Humana, Inc.; Independent Insurance Agents of Wisconsin; National Association of Insurance & Financial Advisors Wisconsin (NAIFA); Northwestern Mutual Insurance; Professional Insurance Agents of Wisconsin; Sentry Insurance; WEA Insurance; Wisconsin Association of Health Underwriters; Wisconsin Council of Life Insurers; Wisconsin Fraternal Alliance; Wisconsin Insurance Alliance; WPS Health Insurance. No comments were received by OCI.
11. Identify the local governmental units that participated in the development of this EIA.
None
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 changes would have no fiscal effect on the state or local governments, nor would they have any significant effect on the private sector. Although the rule changes may potentially affect licensed life and fraternal insurers, any such effect would likely be beneficial due to the more uniform, less-stringent reserve and reporting requirements. Furthermore, any effect on non-insurance businesses would be beneficial, in that the insurance regulations would be more understandable, accurate, and uniform.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The proposed rule changes modify the reserve requirements for life and fraternal insurers, and revise and clarify the reporting requirements related to life reserves. The proposed rule changes also repeal a table that is outdated and unnecessary. Specifically, the proposed change under Item (a) eliminates conservative limitations on factors used to calculate deficiency reserves that the industry has demonstrated are no longer needed. Under Item (b), the clarifying language added to the provision requiring the "Regulatory Asset Adequacy Issues Summary" would eliminate reporting inconsistencies. These changes would also allow Wisconsin regulations to align with the model regulations of the National Association of Insurance Commissioners (NAIC) and the regulations of 18 other states. This consistency would assist domestic insurers specifically, as a significant number of life insurers are doing business in several of the states that have implemented the NAIC model regulations. Additionally, the changes contemplated Item (c) regarding the filing requirement under s. Ins 50.79, Wis. Admin. Code, would ease the administrative burden on the Office of the Commissioner of Insurance (OCI) and foreign insurers doing business in Wisconsin by eliminating an unnecessary filing requirement. Finally, the proposed change under Item (d) repealing the table of select mortality factors at the end of ch. Ins 2, Wis. Admin. Code, would clarify the correct mortality factors to be used in calculating reserves by removing an outdated table contained in the existing regulation.
14. Long Range Implications of Implementing the Rule
None
15. Compare With Approaches Being Used by Federal Government
The OCI is not aware of any existing or proposed federal regulations intended to address the activities to be regulated by the proposed rule changes.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Illinois: 215 ILCS 5/223 (1a) (B) contains reserve and reporting provisions comparable to Wisconsin's existing rules. Iowa: IAC § 508.36 and § 512B.23; § 191-47.4 (508), IA Admin. Code contain reserve provisions more stringent than Wisconsin's existing rules and reporting requirements comparable to the proposed rule change. Michigan: MCLS § 500.837 (2013) and § 500.8186 (2013), and R. 500.853, Rule 13, Mich. Admin. Code and R. 500.995, Rule 5, Mich. Admin. Code, contain reserve and reporting provisions comparable to Wisconsin's existing rules—is considering the adoption of NAIC Model Law 530 with the 2009 revisions comparable to the proposed Wisconsin rule changes. Minnesota: Minn. R. 2747.0030 Subp. 2., Admin. Code and § 61A.258 Subd. (1), Minn. Stat. (2013) address the use of minimum standards for life insurance policy reserves, the method for calculating the reserves, and the select mortality factor tables for both basic and deficiency reserves using the 2001 CSO mortality table, comparable to Wisconsin's current law, and Minn. R. 2711.0070, Admin. Code contains reporting requirements comparable to the proposed rule change.
17. Contact Name				18. Contact Phone Number
Louie Cornelius				608-264-8113

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

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

The proposed rule could have an impact on small businesses, specifically life and fraternal insurers, however any impact would be minimal because few, if any, insurers meet the definition of a small business. Moreover, any impact on these small businesses would likely be beneficial since the proposed rule creates more uniform, less-stringent reserve and reporting requirements. Accordingly, OCI does not anticipate any implementation costs or additional compliance costs since the proposed rule would eliminate current reporting and reserve requirements rather than add new ones. Finally, any affect on non-insurance small businesses would be beneficial, in that the insurance regulations would be more understandable, accurate, and uniform.

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

OCI reviewed the revenue and ownership structure of life and fraternal insurers and determined that the proposed rule could have an effect on small businesses, however any such effect would be minimal and likely positive. Very few, if any, insurers meet the definition of a small business, and those that might would be assisted by the more uniform, less-stringent reserve and reporting requirements. In addition, any effect on non-insurance small businesses would be beneficial, in that the insurance regulations would be more understandable, accurate, and uniform.

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ 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:

N/A. Any impact of the proposed rule on small businesses would be minimal, moreover the impact would likely be beneficial since it is eliminating unnecessary reserve and reporting requirements.

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

N/A. Any impact would likely be beneficial.

5. Describe the Rule's Enforcement Provisions

The proposed changes do not add any new requirements to be enforced. However, insurers are still subject to the current reserve and reporting requirements, failure to comply with those requirements may be enforced by the Commissioner pursuant to ss. 601.41(1) and 601.64, Wis. Stat.

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No

Notice of Hearing

Safety and Professional Services

Professional Services, Chs. 1—299
General Part I, Chs. 301—319
Uniform Dwelling Code, Chs. 320—325
General Part II, Chs. 326—360
Commercial Building Code, Chs. 361—366

CR 14-010

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Safety and Professional Services in ss. 101.09 (3) (c) , 101.147 , 101.178 (3) (a) , 101.63 (2) and (2m) , 101.654 (1m) , 101.73 (5) and (6) , 101.82 (1m) , 101.92 (9) , 101.96 (2) (c) , 101.985 (3) , 145.02 (4) (a) , 145.15 (2) , 145.175 , 227.11 (2) (a) , and 440.974 (2) , Wis. Stats., and interpreting ss. 101.985 (3) , 227.11 (2) (a) , and 440.974 (2) , Wis. Stats., the Department of Safety and Professional Services will hold a public hearing at the time and place indicated below to consider an order to repeal sections SPS 132.01 , 132.02 , 132.025 , 132.04 , 133.01 (2) , 134.01 , 135, 305.08 (3) (b) , 305.01 (4) (i) , 305.01 (4) (i) (Note), Table 305.02 row 8m., Table 305.02 (Note), Table 305.06 row 8m., Table 305.06 column (5), Table 305.06 (Note), 305.125 (3) 1., 305.125 (3) 1. (Note), 305.30, 305.30 (Note); 305.90 (4) (b), 305.90 (4) (d), 305.91 (1) (a), 305.91 (1) (b), 305.91 (1) (b) (Note), 305.91 (5) (b) 1., 305.91 (5) (b) 2., 395.92 (1) (a), 305.92 (1) (b), 305.92 (1) (b) (Note), 305.92 (5) (b) 1., 305.92 (5) (b) 2., 305.92 (6) (b), 305.93 (1) (b) 1., 305.93 (1) (b) 2., 305.93 (1) (b) 2. (Note), 305.93 (5) (b) 1., 305.93 (5) (b) 2., 305.94 (1) (a) 2., 305.94 (1) (a) 2., 305.94 (1) (b) 1., 305.94 (1) (b) 2., 305.94 (1) (b) 2. (Note), 305.94 (3) (b), 305.94 (5) (b) 1., 305.94 (5) (b) 2., 323.16 (2) (a), 332.16 (4), and 361.295 (2); to renumber sections SPS 132.05 (1) (a) , 132.05 (1) (c) , 132.05 (2) (a) , 132.05 (2) (c) , 132.05 (2) (d) , 132.06 , 133.01 (1) , 133.01 (3) , 133.02 , 133.03 , 133.04 , 134.03 , 305.315 (3) (a) 1. , 305.315 (3) (a) 2. , 305.315 (3) (b) 2. , 323.16 (2) (b) , and 323.16 (2) (c) ; to renumber and amend sections SPS 132.03 , 132.05 (1) , 132.05 (1) (b) , 132.05 (2) , 132.05 (2) (b) , 132.05 (3) , 134.02 , and 134.04 ; to amend Chapter SPS 131 (title) and sections 131.01, 305.07 (2) (b) 1. b., 305.08 (3) (a), 305.315 (3) (b) 1., 305.315 (3) (b) 2., 305.327 (5) (b) 1., 305.33 (7) (b) 1., 305.36 (4) (b) 1., 305.43 (7) (b) 1., 305.435 (7) (b) 1., 305.44 (6) (b) 1., 305.443 (6) (b) 1., 305.447 (6) (b) 1., 305.45 (2) (c) 2., 305.51 (7) (c) 1. a., 305.51 (7) (c) 1. b., 305.52 (6) (c) 1. a., 305.52 (6) (c) 1. b., 305.54 (5) (c) 1. a., 305.54 (5) (c) 1. b., 305.56 (6) (c) 1., 305.60 (5) (c) 1., 305.61 (6) (b) 1., 305.62 (7) (b) 1., 305.625 (6) (b) 1., 305.63 (7) (b) 1., 305.64 (2) (b), 305.64 (3) (d), 305.64 (4) (c) 1., 305.64 (4) (d), 305.66 (6) (b) 1., 305.68 (7) (b) 1., 305.84 (6) (b) 1., 305.85 (6) (b) 1., 305.90 (4) (intro.), 305.90 (4) (a), 305.90 (4) (c ), 305.91 (1) (intro.), 305.91 (5) (b) (intro.), 305.91 (8) (b) 1., 305.92 (1) (intro.), 305.92 (5) (b) (intro.), 305.92 (8) (b) 1., 305.93 (1) (b) (intro.), 305.93 (5) (b) (intro.), 305.93 (6) (b) 1., 305.94 (1) (intro.), 305.94 (1) (b), 305.94 (2) (intro.), 305.94 (3) (a), 305.94 (3) (a) 1., 305.94 (3) (a) 2., 305.94 (4), 305.94 (5) (b) (intro.), 305.94 (6) (a) 1., 305.94 (6) (a) 2., 305.94 (6) (b) 1., 305.94 (6) (b) 2., 305.97 (7) (c) 1., 305.99 (5) (c) 1., 305.992 (6) (b) 1., 305.993 (6) (b) 1., 305.997 (6) (b) 1., 334.36, and 334.45 (4) (b); to repeal and recreate section SPS 305.003 (15) ; and to create sections SPS 131.02 (4e) , 131.02 (4m) , 131.02 (4s) , 131.02 (25m) 131 subch. I (title), 131 subch. II (title), 131 subch. III (title), 131 subch. IV , 305.09 (intro.) , 305.315 (3) (c) , 305.315 (3) (d) , 305.315 (4) , 305.64 (2) (b) (Note), 305.945, 323.16 (2) (b) (Note), 332.16 (20) (Note), 334.36 (Note), and 334.45 (4) (b) (Note), relating to licenses, certifications, and registrations of trades credentials; continuing education requirements of home inspectors; and rule changes affected by 2013 Wisconsin Act 20 .

Hearing Information

Date:   Monday, March 3, 2014
Time:   11:00 a.m.
Location:   1400 East Washington Avenue
  (enter at 55 North Dickinson Street)
  Room 121C
  Madison, Wisconsin

Place where Comments are to be Submitted and Deadline for Submission

Comments may be submitted to Katie Paff, Program and Policy Analyst, 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 March 3, 2014, at 11a.m. to be included in the record of rule-making proceedings.

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 argument in writing as well. Facts, opinions, and argument may also be submitted in writing without a personal appearance. All submittals must be directed to Katie Paff, Program and Policy Analyst, at [e-mail] or by mail addressed to the Department of Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.

Copies of Rule

Copies of this proposed rule are available upon request to Katie Paff, Program and Policy Analyst, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8366, 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 of Safety and Professional Services

Statutes interpreted

Sections 101.985 (3) , 227.11 (2) (a) , 440.974 (2) , Wis. Stats.

Statutory authority

Sections 101.09 (3) (c) , 101.147 , 101.178 (3) (a) , 101.63 (2) and (2m) , 101.654 (1m) , 101.73 (5) , 101.73 (6) , 101.82 (1m) , 101.92 (9) , 101.96 (2) (c) , 101.985 (3) , 145.02 (4) (a) , 145.15 (2) , 145.175 , 227.11 (2) (a) , 440.974 (2) , Wis. Stats.

Explanation of agency authority

Section 101.09 (3) (c) , Wis. Stats. The rule promulgated under par. (a) may require the certification or registration of persons who install, remove, clean, line, perform tightness testing on and inspect tanks and persons who perform site assessments. Any rule requiring certification or registration shall also authorize the revocation or suspension of the certification or registration.

Section 101.147 , Wis. Stats. Contractor registration. (1) No person may hold himself or herself out or act as a construction contractor unless that person is registered as a construction contractor by the department. (2) The department shall promulgate rules to administer and enforce this section.

Section 101.178 (3) (a) , Wis. Stats. The department shall promulgate rules for a voluntary program under which a person who engages in the business of installing or servicing heating, ventilating or air conditioning equipment may obtain certification by passing an examination developed or selected by the department.

Section 101.63 (2) , Wis. Stats. Adopt rules for the certification, including provisions for suspension and revocation thereof, of inspectors for the purpose of inspecting building construction, electrical wiring, heating, ventilating, air conditioning and other systems, including plumbing, as defined in s. 145.01 (10) of one- and 2-family dwellings under sub. (1). The rules shall specify that the department may suspend or revoke the certification of an inspector under this subsection for knowingly authorizing the issuance of a building permit to a contractor who is not in compliance with s. 101.654 .

Section 101.63 (2m) , Wis. Stats. Promulgate rules for certifying the financial responsibility of contractors under s. 101.654 . These rules shall include rules providing for the assessment of fees upon applicants for certification of financial responsibility under s. 101.654 and for the suspension and revocation of that certification.

Section 101.654 (1m) , Wis. Stats. The department shall promulgate rules establishing continuing education requirements for persons seeking to obtain a building permit under sub. (1) (a).

Section 101.73 (5) , Wis. Stats. Adopt rules for the certification, including provisions for suspension and revocation thereof, of on-site inspectors of the installation of modular homes for dwellings. Persons certified as on-site inspectors may be employees of the department, a city, village, town or county or an independent agency.

Section 101.73 (6) , Wis. Stats. Adopt rules for the certification, including provisions for suspension and revocation thereof, of independent inspection agencies to conduct in-plant inspections of manufacturing facilities, processes, fabrication and assembly of modular homes for dwellings and to certify compliance with this subchapter.

Section 101.82 (1m) , Wis. Stats. Promulgate rules that establish criteria and procedures for the registration of beginning electricians and for the examination and licensing of different types of electricians, including journeymen electricians and master electricians.

Section 101.82 (1v) , Wis. Stats. Promulgate rules that establish criteria and procedures for the licensing of electrical contractors.

Section 101.92 (9) , Wis. Stats. Shall promulgate rules and establish standards necessary to carry out the purposes of ss. 101.951 and 101.952 .

Section 101.96 (2) (c) , Wis. Stats. The department, by rule shall establish the term of installers' licenses and the conditions under which the department may revoke or suspend installers' licenses. The department shall establish an initial installer's license fee and license renewal fee by rule under s. 101.19 .

Section 101.985 (3) , Wis. Stats. The department shall issue an elevator inspector license to each individual who demonstrates to the satisfaction of the department that the individual is adequately qualified and able to provide elevator inspection services. The department shall promulgate rules that establish the qualifications required for issuance of an elevator inspector license.

Section 145.02 (4) (a) , Wis. Stats. The department shall prescribe rules as to the qualifications, examination and licensing of master and journeyman plumbers and restricted plumber licensees, for the licensing of utility contractors, for the registration of plumbing apprentices and pipe layers and for the registration and training of registered learners. The plumbers council, created under s. 15.407 (16) , shall advise the department in formulating the rules. (b) The department may promulgate rules for the qualification and registration of cross-connection control testers.

Section 145.15 (2) , Wis. Stats. The department shall prescribe rules as to the qualifications, examination and licensing of journeymen automatic fire sprinkler system fitters and automatic fire sprinkler contractors and for the registration and training of automatic fire sprinkler system apprentices. The automatic fire sprinkler system contractors and journeymen council, created under s. 15.407 (17) , shall advise the department in formulating the rules.

Section 145.175 , Wis. Stats. An automatic fire sprinkler-maintenance only registration certificate is required before any business establishment may maintain or repair existing automatic fire sprinkler systems in its physical facilities. The department shall, by rule, specify the qualifications for issuing an automatic fire sprinkler-maintenance only registration certificate. The department shall, by rule, specify the activities in which a person holding a registration certificate under this section may engage.

Section 227.11 (2) (a) , Wis. Stats. Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation.

Section 440.974 (2) , Wis. Stats. The department shall promulgate rules establishing continuing education requirements for individuals registered under this subchapter. The rules promulgated under this subsection shall require the completion of at least 20 hours of continuing education during each calendar year.

Related statute or rule

Sections 440.08 (2) (a) 38g. and (3) (a) , 440.972 , 440.973 , 440.974 , 440.975 , 440.978 , and 440.979 , Wis. Stats.

Plain language analysis

A recent audit revealed confusion among registered home inspectors in Wisconsin with regards to the continuing education requirements for registration renewal. This proposed rule change would provide clarity for registered home inspectors. The proposed rule change would also repeal rules that are no longer effective, consolidate the home inspector chapters into a single chapter, and incorporate rule changes to ch. SPS 135 in light of changes to s. 440.974 (2) , Stats., under 2013 Senate Bill 345.

Chapter SPS 305 establishes licensing, certification, and registration requirements for a variety of building-related trades, both for individuals and businesses. Current rules require most renewal applicants to complete all continuing education requirements 3 months prior to the expiration of the license, certification or registration. The proposed rule change would align the renewal and continuing education cycle allowing applicants to complete continuing education requirements up to the expiration date of the credential.

Individuals seeking to renew a dwelling contractor qualifier certification must complete at least 12 hours of continuing education approved by the Department. However, Department standards for approval of continuing education courses are unclear often resulting in confusion and wasted resources for potential course providers. The proposed rule change would provide greater clarity with regards to Department standards for course approval facilitating a more transparent and consistent approval process.

The ASME QEI Accreditation Program accredits organizations that certify elevator inspectors in accordance with the ASME QEI-1 Standard. Department rule, s. SPS 305.64 (2) (b) , currently requires applicants for an elevator inspector license to submit evidence of certification by an American Society of Mechanical Engineers (ASME) accredited organization as a qualified elevator inspector (QEI). ASME is discontinuing the QEI Accreditation Program. All accreditations will be withdrawn on January 1, 2014. The proposed rule change removes reference to ASME accreditation and requires applicants for an elevator inspector license to submit evidence of certification based on the QEI-1 standard from an independent organization acceptable to the Department.

Current Department administrative rules require applicants seeking to obtain a journeyman plumber-restricted appliance license to take and pass an examination administered by the Department. The proposed rule change would allow applicants the option of taking an examination administered by an entity approved by the Department. The plumbing activities performed by a licensed journeyman plumber-restricted appliance are limited to the installation and modification of water heaters, water softeners, water treatment devices, and other items in connection with an existing water supply system which do not required direct connection to the drain system. The proposed rule change would also repeal rules that are no longer effective and reorganize rules related to the two different restricted plumbing licenses for greater clarity including separating the rules for journeyman plumber-restricted appliance license holders into a separate rule section.

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

None.

Comparison with rules in adjacent states

Illinois: All home inspectors are required to complete the equivalent of 6 hours of continuing education per year or 12 hours per renewal from an education provider approved and licensed by the Illinois Department of Financial and Professional Regulation. Proof of continuing education is not required for renewal. However, the Department may require additional evidence demonstrating compliance with the continuing education requirements. It is the responsibility of each renewal applicant to retain or otherwise produce evidence of such compliance upon request.

A review of the rules and statutes pertaining to the renewal of trades credentials in Illinois found no instance of a continuing education cycle that does not align with the credential renewal cycle (41 Ill. Adm. Code 1000.110 Elevator Safety Rules; 68 Ill. Adm. Code 750.500 Plumbers Licensing Code; 225 ILCS 317/35 Sec. 35 (b) Fire Sprinkler Contractor Licensing).

Dwelling contractors are not regulated by the state of Illinois.

In order to be licensed as an elevator inspector in Illinois, the applicant must have attained QEI certification and prove to the satisfaction of the Office of the State Fire Marshall that he or she meets the current ASME QEI-1 Standard for the Qualifications of Elevator Inspectors [225 ILCS 312/50, 41 Ill. Adm. Code Section 1000.80(e)].

Illinois does not offer a plumber-restricted license. Individuals seeking a plumbing license must take a state provided examination (68 Ill. Adm. Code 750).

Iowa: Home inspectors are not regulated by the State of Iowa.

A review of the rules and statutes pertaining to the renewal of trades credentials in Iowa found no instance of a continuing education cycle that does not align with the credential renewal cycle (Iowa Code 641- 30.2 Plumbing and Mechanical Systems Board; and Iowa Code 661-505.210 Electrician and Electrical Contractor Licensing Program).

All contractors doing business in Iowa who make more than $2,000 a year must be registered with the Iowa Division of Labor. "Construction" is defined very broadly to include not only typical "construction" work, but also companies or individuals who perform electrical, plumbing, roofing, or house painting work, as well as installation of landscaping, windows, cable, elevators and other activities. Annual renewal is required. Coursework is not required for initial registration. Continuing education is not required for renewal (Chapter 91 C of the Iowa Code).

Applicants for an elevator inspector license in Iowa must be a certified elevator inspector (CEI) pursuant to ASME QEI-1. A copy of the applicant's CEI card is required for a complete application [Code of Iowa 89A.6 and 875 Iowa Administrative Code 71.12].

All applicants for plumbing-related licenses in Iowa must take a board approved, state licensing examination written and proctored by a board-approved testing agency (Iowa Code Ch. 641 -29.6). Iowa does not offer a credential equivalent to the journeyman plumber-restricted appliance license.

Michigan: Home inspectors are not regulated by the State of Michigan.

A review of the rules and statutes pertaining to the renewal of trades credentials in Michigan found no instance of a continuing education cycle that does not align with the credential renewal cycle (MI Code 338.3535 Sec.25 (3) Journey plumber's license).

In Michigan, an applicant for a Residential Builder or Maintenance & Alteration Contractor license must complete 60 hours of approved prelicensure education prior to taking the examination or submitting a license application to the Department. All prelicensure education courses must be approved by the Department. The 60 hours of approved prelicensure courses must include at least six hours in each of the following subjects: (1) Business Management, Estimating, and Job Costing; (2) Design and Building Science; (3) Contracts, Liability, and Risk Management; (4) Marketing and Sales; (5) Project Management and Scheduling; (6) The Michigan Residential Code; (7) MIOSHA Construction Safety Standards; and, (8) The remaining 18 hours may come from other topics on the approved course list.

Applicants originally licensed after January 1, 2009 are required to complete the following every 3 years for the first 6 years of licensure: (1) A minimum of 3 hours each year; and (2) A total of 21 hours within the first 3 years of licensure and an additional 21 hours during the second 3-year license cycle consisting of 1 hour covering building codes and laws related to the licensed occupation, 1 hour covering safety, 1 hour covering changes in construction and business management laws, and 18 hours of "other topics" (MCL 339.2404b (2)).

To fulfill the continuing competency requirement, applicants can complete any of the following courses and activities: (1) Teaching or successfully completing any approved prelicensure course, Bureau of Construction Codes code update course, MIOSHA safety course, or college course; (2) Successfully completing a comprehensive test administered by the Department or the Department's third-party testing contractor; (3) Participation in a school-sponsored mentoring program; (4) Presenting or attending a seminar, in-house course, workshop, technical presentation, or training made at a meeting, convention or conference by a trade association, research institute, risk management entity, manufacturer, supplier, governmental agency, consulting agency, or other entity; (4) Publication of an article in a trade journal or a regional magazine as an expert in the field; (5) Active participation in an occupational or technical society, state advisory or review committee; (6) Serving as a member or attending a state Residential Builders' and Maintenance & Alteration Contractors' Board meeting or a state Construction Code Commission meeting; (7) Participating in a code hearing conducted by the International Code Council or Bureau of Construction Codes; (8) Participating in research conducted in conjunction with a college or university, trade association, or manufacturer; or (9) Any continuing competency course or activity may be earned through distance learning (2011 MR 3, R 338.1564 (1) and 2011 MR 3, R 338.1566 (3)).

To meet the 18 hours of "other topics" relevant to the licensed occupation, applicants can complete courses and activities of the following subjects: (1) Business management, estimating, and job costing; (2) Design and building science; (3) Contracts, liability, and risk management; (4) Marketing and sales; (5) Project management and scheduling; (6) Carpentry, concrete, swimming pool installation, waterproofing a basement, excavation, insulation work, masonry work, painting and decorating, roofing, siding and gutters, screen or storm sash insulation, tile and marble work, or house wrecking; (7) Accounting and safekeeping for monies received from a customer, including the requirements of building contract fund; (8) Accounting, finance, and taxes; (9) Personnel Management; (10) Communication and customer service; (11) Environmental or land use analysis; (12) Life safety; (13) "Green" building; (14) Zoning and governance policies and procedures; or (15) Mold, lead, asbestos, or other hazardous material mitigation (2011 MR 3, R 338.1564 (2)).

All elevator inspectors must be certified competent by the Elevator Safety Board of the Michigan Department of Licensing and Regulatory Affairs. There are two types of elevator inspectors: general elevator inspectors who are employed by the State and special elevator inspectors who are employed by insurance companies or municipalities. In addition to being certified, special elevator inspectors must also be commissioned by the Department. Initial commissions for special elevator inspectors are valid for one year. These commissions must be renewed annually.

Applicants for both the general elevator inspector and special elevator inspector certifications must pass (with a score of 70%) the two-part examination of the Elevator Safety Board [Authority: MI Statutes 1967 PA 227]. Applicants may prepare for the examination by studying the ASME A17.1-2007, Safety Code for Elevators and Escalators; ASME A18.1-2008, Safety Standard for Platform Lifts and Stairway Chairlifts; the Michigan Elevator Laws and Rules; 1967 PA 227; 1976 PA 333; the current Michigan Electrical Code, NFPA 70; ASME A90.1-2003, Safety Standards for Belt Manlifts; and the ANSI A10.4-2007, Safety Requirements for Personnel Hoists.

Individuals seeking a journey plumber's license in Michigan must pass an examination provided by the State Plumbing Board and the Department of Licensing and Regulatory Affairs (MI PA 733 of 2002, Sections 338.3533 and 338.3535 ). Examinations are currently provided and administered by the Department of Licensing and Regulatory Affairs. Michigan does not offer a credential equivalent to the journeyman plumber-restricted appliance license.

Minnesota: Home inspectors are not regulated by the State of Minnesota.

A review of the rules and statutes pertaining to the renewal of trades credentials in Minnesota found no instance of a continuing education cycle that does not align with the credential renewal cycle (MN Rules 4716.0205 – Plumber Licensing and Apprentice Registration; and MN Rules 3800.3602 – Board of Electricity Licensing).

Anyone who contracts or offers to contract with a homeowner to construct or improve "residential real estate" must be licensed as a residential building contractor or a residential remodeler unless they meet one of the specified exemptions. A residential building contractor can build new homes and work on existing structures, whereas a remodeler can only work on existing structures.

Licenses are issued to the residential contracting business entity, though each business entity must have an individual who acts as the "qualifying person" for the company's license. In order to be a qualifying person, the individual must be an owner or officer of the company or a managing employee of the company and must pass a written exam.

To renew a license, the company's qualifying person must complete 14 hours of appropriate and related knowledge in residential construction, including applicable federal and state laws, rules, and regulations at an approved continuing education program during the biennial renewal cycle. Course content must demonstrate significant intellectual or practical content and deal with matters directly related to residential construction, workforce safety, or the business of running a company in the residential construction industry. One of the 14 hours must include instruction related to energy codes or energy conservation measures applicable to residential structures. Courses not approved by DLI may be accepted for credit by submitting an individual course application and a certificate of completion along with all course materials (Minnesota Statutes 326B.0981, 326B.821).

Current Minnesota rules specify that any person performing elevator inspections hired after January 29, 2007, must be certified by an ASME accredited organization as a qualified elevator inspector (QEI) within 18 months of the employment start date [MN Rules 1307.0067 subp. 13.].

An applicant for a plumber's license in Minnesota must pass an examination given by the provided by the Department of Labor and Industry in March and September of each year (MN Rules 4716.0020). Minnesota does not offer a credential equivalent to the journeyman plumber-restricted appliance license.

Summary of factual data and analytical methodologies

The proposed rule change provides clarity for registered home inspectors with regards to continuing education requirements for registration renewal. The proposed rule change is based on the results from a recent audit conducted by the Department assessing compliance with the continuing education requirements in ch. SPS 135 .

Department rules were evaluated to find opportunities to increase efficiencies in the processes relating to the issuance and renewal of credentials. It was determined that the credential renewal process could be made less burdensome while maintaining professional integrity by aligning the continuing education and renewal cycles.

Department standards for approval of continuing education courses required to renew a dwelling contractor qualifier certification are unclear resulting in confusion and wasted resources for potential course providers. The proposed rule change would provide greater clarity with regards to Department standards for course approval facilitating a more transparent and consistent approval process. Expert advice from the Contractor Certification Council informed the proposed rule change.

Section SPS 305.64 (2) (b) currently requires applicants for elevator inspector licensure to provide proof of certification from an ASME accredited organization. Since ASME will be discontinuing the QEI accreditation program, this change updates the rule to reflect that applicants will be required to provide evidence of certification from a Department approved independent agency.

The proposed rule change provides applicants seeking to obtain a journeyman plumber-restricted license with more testing options to receive licensure.

Adjacent states' requirements were also reviewed.

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

The rule was posted currently for public comment on the economic impact of the proposed rule, including how this proposed rule may affect businesses, local government units and individuals, for a period of 14 days. No comments were received relating to the economic impact of the rule.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

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

Katie Paff, Program and Policy Analyst, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8935, Madison, Wisconsin 53708; telephone [phone]; email at [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
SPS 131, 132, 133, 134, 135, 305, 323, 332, 334, 361
3. Subject
Relating to trades licenses, certifications, and registrations of trades credentials; continuing education requirements of home inspectors; and rule changes affected by 2013 Wisconsin Act 20
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			20.165 (2) (j)
6. Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs X 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
A recent audit revealed confusion among registered home inspectors in Wisconsin with regards to the continuing education requirements for registration renewal. This proposed rule change would provide clarity for registered home inspectors. Chapter SPS 305 establishes licensing, certification, and registration requirements for a variety of building-related trades, both for individuals and businesses. Current rules require most renewal applicants to complete all continuing education requirements 3 months prior to the expiration of the license, certification or registration. The proposed rule change would align the renewal and continuing education cycle allowing applicants to complete continuing education requirements up to the expiration date of the credential. Department standards for approval of continuing education courses required to renew a dwelling contractor qualifier certification are unclear resulting in confusion and wasted resources for potential course providers. The ASME QEI Accreditation Program accredits organizations that certify elevator inspectors in accordance with the ASME QEI-1 Standard. Department rule, SPS 305.64 (2) (b), currently requires applicants for an elevator inspector license to submit evidence of certification by an American Society of Mechanical Engineers (ASME) accredited organization as a qualified elevator inspector (QEI). ASME is discontinuing the QEI Accreditation Program. The proposed rule change removes reference to ASME accreditation and requires applicants for an elevator inspector license to submit evidence of certification based on the QEI-1 standard from an independent organization acceptable to the Department. Current Department administrative rules require applicants seeking to obtain a journeyman plumber-restricted appliance license to take and pass an examination administered by the Department. The proposed rule change would allow applicants the option of taking an examination administered by an entity approved by the Department. The proposed rule change would also repeal rules that are no longer effective and reorganize rules related to the two different restricted plumbing licenses for greater clarity including separating the rules for journeyman plumber-restricted appliance license holders into a separate rule section.
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.
11. Identify the local governmental units that participated in the development of this EIA.
None. This rule does not affect local government units.
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 businesses, business sectors, public utility rate payers, local governmental units or the state's economy as a whole.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The proposed rule change provides clarity for registered home inspectors with regards to continuing education requirements for registration renewal. The proposed rule change is based on the results from a recent audit conducted by the Department assessing compliance with the continuing education requirements in ch. SPS 135. By not amending the rules in this manner, home inspectors may inadvertently fail to meet the requirements and as a result may not be able to practice as home inspectors. Department rules were evaluated to find opportunities to increase efficiencies in the processes relating to the issuance and renewal of credentials. It was determined that the credential renewal process could be made less burdensome while maintaining professional integrity by aligning the continuing education and renewal cycles. The proposed rule change would provide greater clarity with regards to Department standards for course approval facilitating a more transparent and consistent approval process. Implementing this rule provides clarity with regards to licensure requirements for elevator inspectors once ASME discontinues its accreditation program. The proposed rule change would provide more exam options for the licensed journeyman plumber-restricted appliance credential.
14. Long Range Implications of Implementing the Rule
Implementing the rule would provide for a less burdensome and more transparent credential application and renewal process for trades professionals and home inspectors in the future.
15. Compare With Approaches Being Used by Federal Government
None.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
A review of the rules and statutes pertaining to the renewal of trades credentials in Illinois, Iowa, Michigan, and Minnesota found no instance of a continuing education cycle that does not align with the credential renewal cycle. Michigan and Minnesota specify the approved topic areas for pre-licensure and continuing competency courses for dwelling contractor qualifiers. Applicants in these states must complete a certain number of hours in specific topic areas and are allowed to take other courses in a variety of other topic areas. In Iowa, coursework is not required for initial registration or renewal for dwelling contractor qualifiers. The state of Illinois does not regulate dwelling contractor qualifiers. Illinois, Iowa and Michigan have not yet updated their code to reflect the discontinuation of the ASME QEI Accreditation Program. The Department of Licensing and Regulatory Affairs directly certifies elevator inspectors in Michigan.
17. Contact Name				18. Contact Phone Number
Katie Paff				608-261-4472

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

Notice of Hearing

Safety and Professional Services —
Controlled Substances Board

CR 14-009

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Controlled Substances Board in s. 961.335 (8) , Wis. Stats., and interpreting s. 961.335 , Wis. Stats., the Controlled Substances Board will hold a public hearing at the time and place indicated below to consider an order to create section CSB 3.045 , relating to granting a limited special use authorization and denial of a special use authorization.

Hearing Information

Date:   Tuesday, March 4, 2014
Time:   9:30 a.m.
Location:   1400 East Washington Avenue
  (enter at 55 North Dickinson Street)
  Room 121A
  Madison, Wisconsin

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 argument in writing as well. Facts, opinions and argument 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 8366, 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 March 4, 2014 , 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 8366, Madison, Wisconsin 53708, or by email at [e-mail] .

Analysis Prepared by the Department of Safety and Professional Services

Statutes interpreted

Section 961.335 , Wis. Stats.

Statutory authority

Section 961.335 (8) , Wis. Stats.

Explanation of agency authority

The controlled substances board may promulgate rules relating to the granting of special use permits including, but not limited to, requirements for the keeping and disclosure of records, filing of applications, and suspension or revocation of permits.

Related statute or rule

Section 961.335 , Wis. Stats., and ch. CSB 3 , Wis. Admin. Code

Plain language analysis

The proposed rule states the basis for denying or limiting a special use authorization which is based upon consideration of public health and safety. It includes consideration of the following: an act which causes a violation which would result in suspension or revocation under current rules; making false statements on an application; violating federal or state statutes related to have the ability to have controlled substances special use and an act which shows the person would be unable to safely use the SUA due to alcohol or other substance use.

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

Federal regulations requires any person who possesses, manufactures, distributes or dispenses any controlled substances to register with the U.S. Department of Justice, Drug Enforcement Administration, Office of Diversion Control.

The proposed rule included the criteria used by the federal government in granting/denying a DEA registration because once the special use authorization permit is granted, the person would also need DEA registration.

Comparison with rules in adjacent states

Illinois: In Illinois a registration to manufacture, distribute, or dispense a controlled substance or purchase, store, or administer euthanasia drugs may be denied, refused renewal, suspended or revoked if a person: provided false or fraudulent material information in any application; has been convicted of a felon related to any controlled substance; has had their federal DEA registration suspended or revoked; has been convicted of bribery, perjury or other infamous crime; violated any provision of the controlled substances act; or failed to provide effective controls against the diversion of controlled substances in other than legitimate medical, scientific or industrial channels.

Iowa: In Iowa, a registration to manufacture, distribute, dispense, prescribe, import or export, conduct research or instructional activities or conducts chemical analysis with controlled substances in Iowa may be denied if the board determines that the issuance of the registration would be inconsistent with the public interest. In determining the public interest, the board shall consider the following factors: maintenance of effective controls against diversion of controlled substances into other than legitimate medical, scientific or industrial channels; compliance with applicable state and local law; any convictions related to any controlled substance; past experience in the manufacture or distribution of controlled substances, and the existence in the applicant's establishment of effective controls against diversion; furnishing false or fraudulent material in any application for registration; suspension or revocation of the federal DEA registration; and any other factors relevant to and consistent with the public health and safety.

Michigan: Michigan has 7 different licenses for controlled substances based upon the purpose of the applicant. The license shall be granted unless the issuance of the license would be inconsistent with the public interest. In determining the public interest, the following shall be considered: maintenance of effective controls against diversion to other than legitimate and professionally recognized therapeutic, scientific, or industrial channels; compliance with applicable state and local law; conviction relating to a controlled substance; past experience in the manufacture or distribution of controlled substances and the existence in the applicant's establishment of effective controls against diversion; furnishing false or fraudulent material in an application for a controlled substance license; suspension or revocation of the federal dea registration; and any other factor relevant to and consistent with the public health and safety.

Minnesota: In Minnesota, a person who engages in research, teaching or educational projects involving the use, study or testing of controlled substances is required to apply for a registration permit. The board may deny, suspend, revoke, or refuse to renew any registration based upon the following: fraud or deception in connection with securing the registration; habitual indulgence in the use of narcotics, stimulants, or depressant drugs or habitual indulgence in intoxicating liquors in a manner which could cause conduct endangering public health; unprofessional conduct or conduct endangering public health; gross immorality; conviction of theft of drugs or the unauthorized use, possession or sale thereof; violation of the provisions of the rules of the board;

Summary of factual data and analytical methodologies

The proposed rule states the basis for denying or limiting a special use authorization which is based upon consideration of public health and safety.

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

This rule was posted for economic impact comments for a period of 14 days and none were received.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

This rule does not have an impact on small business.

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 8366, Madison, Wisconsin 53708; telephone [phone]; email at [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
CSB 3.045
3. Subject
Granting a limited special use authorization and denial of a special use authorization
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			20.165(1)(g)
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
The current rules do not provide a basis for which the controlled substances board may exercise its discretion and deny a person a special use authorization or grant a limited special use authorization.
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 economic comments for a period of 14 days and no comments were received.
11. Identify the local governmental units that participated in the development of this EIA.
None
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)
None.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The benefit of implementing the rule is to give the applicant notice of the basis for which a denial or granting of a limited special use authorization may occur.
14. Long Range Implications of Implementing the Rule
The long range benefit is for applicants to have notice of the basis for which a denial or limited special use authorization may occur.
15. Compare With Approaches Being Used by Federal Government
The federal regulations require any person who possesses, manufactures, distributes or dispenses any controlled substances to register with the U.S. Department of Justice, Drug Enforcement Administration, Office of Diversion Control. A DEA registration may be denied for the following: providing false information on an application, conviction of a law relating to controlled substances, having a state license has been disciplined or has committed acts would render registration inconsistent with the public interest.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Illinois, Iowa, Michigan and Minnesota list reasons for a denial of a registration or license related to controlled substances similar to Wisconsin's special use authorization permit.
17. Contact Name				18. Contact Phone Number
Sharon Henes				[phone]

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

Notice of Hearing

Safety and Professional Services —
Dentistry Examining Board

CR 14-011

NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Dentistry Examining Board in ss. 15.08 (5) (b) and 227.11 (2) (a) , Wis. Stats., and interpreting ss. 146.81 and 447.02 , Wis. Stats., the Dentistry Examining Board will hold a public hearing at the time and place indicated below to consider an order to create Chapter DE 8 , relating to patient dental records.

Hearing Information

Date:   Wednesday, March 5, 2014
Time:   8:30 a.m.
Location:   1400 East Washington Avenue
  (enter at 55 North Dickenson Street)
  Room 121A
  Madison, Wisconsin

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 argument in writing as well. Facts, opinions and argument 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 8366, Madison, Wisconsin 53708-8366. 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, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8366, or by email to [e-mail] . Comments must be received at or before the public hearing to be held on March 5, 2014, or by email 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, Administrative rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, P.O. Box 8366, Madison, Wisconsin 53708-8366, 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 of Safety and Professional Services

Statutes interpreted

Sections 146.81 (1) and (4) and 447.02 , Stats.

Statutory authority

Sections 15.08 (5) (b) and 227.11 (2) (a) , Stats.

Explanation of agency authority

Section 15.08 (5) (b) , Stats., requires all examining boards 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 227.11 (2) (a) , Stats., authorizes all agencies to promulgate rules interpreting the statutes it enforces or administers, when deemed necessary to effectuate the purpose of such statutes.

Related statute or rule

Section 146.81 (1) and (4) , Stats.

Plain language analysis

The proposed rule is to outline the minimum requirements for patient dental records. The rule considers ss. 146.81 (1) and (4) , Stats., whereby dentist is defined as a healthcare provider and consequently required to maintain patient health records as specified in s. 146.81 (4) , Stats. No additional requirements are proposed in this newly created chapter.

SECTION 1. This section creates a new chapter, DE 8 patient dental records and substantially mirrors the patient health records as specified in ch. Med 21 , Wisc. Admin. Code. Specific areas of compliance include: retention, confidentiality, destruction and falsification of records.

SECTION 2. This section identifies when in the rule-making process the rule shall become effective.

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

An Internet-based search of the U.S. Code and Federal Register did not reveal any laws or proposals related to patient dental records, with the exception of the move to electronic records for Medicaid patients in 2016.

Comparison with rules in adjacent states

An Internet-based search of the four adjacent states revealed the following:

Illinois: In Illinois Department of Financial and Professional Regulation oversees dentists; no rules requiring patient dental records were found.

Iowa: In Iowa, chapter 27 of the Iowa code, 650—27.11 (153,272C), relates to record keeping. Patient dental records must be maintained for a minimum of six years after the date of last examination, prescription, or treatment and for a minor for 6 years after the age of majority. . Similar to other states, when electronic records are kept, a duplicate hard copy record or use of an unalterable electronic record must be maintained.

Michigan: In Michigan the Board of Dentistry rule, 1120 (R 338.11101 - 338.11821), requires records to be maintained for 10 years after the last treatment. In addition charting of dental procedures and a listing of medications administered are two additional requirements unlike proposed in this rule.

Minnesota: In Minnesota, the related rule is 3100.9600, record keeping. This rule requires records to be maintained for 7 years after the last treatment. In the case of a minor patient, the records must be maintained for 7 years beyond the age of majority. In addition an emergency contact, information related to any insurance coverage, and providing an electronic backup are three additional requirements unlike proposed in this rule.

Summary of factual data and analytical methodologies

No factual data and analytical methodologies were used to draft these rules.

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

The issue of patient dental records was raised in the context of not having a retention policy and the impact on associated costs related to the amount of storage dentist and firms are currently are maintaining. Section 146.81 (4) , Stats., provides a period for destruction of records 5 years after the date of the last entry, or for such longer period as may be otherwise required by law.

Pursuant to s. IV, 3. a., EO # 50, the rules herein were posted on both the state's and the department's administrative rules websites for 14 days in order to solicit comments regarding the rule's potential economic impact on businesses, business sectors, professional associations, local government units, or potentially interested parties.

It is expected that this proposed rule will result in a decrease expense at least in the cost of hard-copy record storage. No specific data was collected or analyzed to come to this conclusion.

Fiscal Estimate and Economic Impact Analysis

The Fiscal Estimate and Economic Impact Analysis is attached.

Initial Regulatory Flexibility Analysis or Summary

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].

Environmental Assessment/Statement [if required]:

N/A

Agency Contact Person

Jean MacCubbin, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708-8366; telephone [phone] or telecommunications rely at 711; email at [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
Ch. DE 8, Patient Dental Records
3. Subject
Dental Patient Records; record Retention, Record Guidelines
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			20.165(1)(g)
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 are no guidelines or policies on patient dental records retention in chs. DE 1 to 13. Licensees report that hard copy retention of records requires storage and in some cases, off-site storage. Electronic record storage is an option and hard-copy storage could be reduced depending on retention policies. In both cases, a reduction in cost is evitable in the long-term.
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 and dental firms.
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 known adverse economic impacts on these specific businesses.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The rule considers s. 146.81 (4), Stats., patient health records, making the rules under the authority of the Dentistry Examining Board in compliance with state Statutes. An option would be to continue without guidelines on patient records.
14. Long Range Implications of Implementing the Rule
The overhead cost of hard copy record storage is expected to be reduced over time.
15. Compare With Approaches Being Used by Federal Government
None found.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
With the exception of the state of Illinois, the three adjacent states require dental records retained for periods of 5, 7 or 10 years.
17. Contact Name				18. Contact Phone Number
Jean MacCubbin				608.266.0955

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