CR_14-055 Revises Chapters ETF 10, 20, 40, 50, 52, 60, 70, 52, making technical updates to existing ETF rules, deleting obsolete language in ETF rules, creating consistency with provisions in 2013 Wisconsin Act 20 related to rehired annuitants, and ...

(II) Enrolled in an institution which provides post-secondary or vocational education.

(III) Participating in a program or activity designed to promote, or remove barriers to, employment.

(IV) Employed for at least 80 hours per month.

(V) Incapable of doing any of the activities described in subclauses (I) through (IV) due to a medical condition, which incapability is supported by regularly updated information in the case plan of the child.

42 USC 675 (8) (B) (i) requires that any extension of foster care to children over 18 years of age also apply to adoption assistance and subsidized guardianship agreements that became effective after the child attained 16 years of age. Department of Health and Human Services, Administration for Children and Families, Children's Bureau, Program Instruction, Guidance on the Fostering Connections to Success and Increasing Adoptions Act of 2008 , ACYF-CB-PI-10-11, July 9, 2010.

Comparison to rules in adjacent states

Illinois, Minnesota, and Michigan elected to extend foster care to all youth allowed under 42 USC 675 (8) (B).

Iowa elected to extend foster care to age 20 for youth attending high school or obtaining their GED.

Effect on Small Business

The rule will affect small businesses as defined in s. 227.114 (1) , Stats.

Analysis Used to Determine Effect on Small Business or in Preparation of Economic Impact Analysis

Residential care centers, group homes, and licensed child-placing agencies will be affected by the rule changes, but the effect will be minimal.

Agency Contact Person

For foster care, kinship care, adoption assistance, and subsidized guardianship:

Jonelle Brom

Section Chief, Out-of-Home Care Section

Division of Safety and Permanence

[e-mail]

[phone]

For group homes, residential care centers, and child-placing agencies:

Mary Morse

Child Welfare Program Specialist

Licensing Section

Division of Safety and Permanence

[e-mail]

[phone]

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
DCF 21, Re-entry into out-of-home care for youth 18 years of age or over, but under 21 years of age DCF 50, Facilitating the adoption of children with special needs DCF 52, Residential care centers for children and youth DCF 54, Child-placing agencies DCF 55, Subsidized guardianship DCF 56, Foster home care for children DCF 57, Group homes DCF 58, Eligibility for kinship care and long-term kinship care program
3. Subject
Extension of out-of-home care to children and youth 18 years of age or over, but under 21 years of age
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
X GPR   X FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S			(1)(b), (1)(dd), (1)(cx), (1)(mx), (1)(o), and (1)(pd)
6. Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect ⍽ Indeterminate	X Increase Existing Revenues ⍽ Decrease Existing Revenues		X Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy X Local Government Units		⍽ 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
Implementing 2013 Wisconsin Act 334
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.
The department solicited comments from county departments of social services and county departments of human services; licensees of foster homes, group homes, residential care centers, and child-placing agencies; and others who have requested to be on the numbered memo and child welfare listservs.
11. Identify the local governmental units that participated in the development of this EIA.
Oconto County and Taylor County
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)
Several assumptions were made in calculating the cost of this expansion. First, it was assumed that the total caseload of children aging out of out-of-home care is 438. This represents an average of the number of children who aged out of out-of-home care in CY 2011 (462) and CY 2012 (413). Second, based on analysis done by DCF of Wisconsin K-12 data, this bill assumes that 43% of these children have an IEP in effect. Third, the bill assumes that the average out-of-home care payment is $2,461 per month. The cost of an out-of-home care placement was calculated using a weighted average of the placement settings for the children who aged out of care in CY 2012. Fourth, based on data from the Wisconsin Department of Public Instruction, it was assumed that 40% of students with an IEP in effect at age 18 remain in school until age 19, 60% of students with an IEP in effect at age 19 remain in school until age 20, and 10% of students with an IEP at age 20 remain in school until age 21. The expansion was assumed to begin on July 1, 2014. Under these assumptions, the program would cost $1,205,000 all funds ($907,100 GPR) in the first year of implementation (SFY 2015). The emergency rule became effective August 1, 2014. County representatives commented on the potential of a significant financial burden for small counties. Youth who have an IEP often require special care in expensive placements, such as treatment foster homes, group homes, or residential care centers. They request that the state provide additional funding to counties for youth that meet the criteria for out-of-home care beyond their 18 th birthday. 2013 Wisconsin Act 334 provided funding in the amount of $1,205,000 for the extension of out-of-home care program. Of this amount, $688,500 will be added to the children and family aids allocations in SFY 2015 to supplement both the CY 2014 and CY 2015 contracts to account for the estimated increase in caseloads for counties. The department is responsible for meeting the cost of a placement of a child 18 years of age or over in a residential care center for children and youth under the extension program. A social worker and former foster child commented on the importance of supporting these youth while they obtain their education to save costs in the long run.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
2013 Wisconsin Act 334 directed the department to implement the extension of out-of-home care to children and youth 18 years of age or over, but under 21 years of age effective August 1, 2014.
14. Long Range Implications of Implementing the Rule
The program will be phased-in over a four-year period. Costs will increase in SFY 2016, SFY 2017, and SFY 2018.
15. Compare With Approaches Being Used by Federal Government
42 USC 675 allows states to elect the activities in which a child who has attained 18 years of age but has not attained 19, 20, or 21 years of age is required to be participating to be eligible for assistance under Title IV-E of the Social Security Act. 2013 Wisconsin Act 334 elects eligibility for a child who is a full-time student at a secondary school or its vocational or technical equivalent and for whom an individualized education program (IEP) is in effect until the child is granted a high school or high school equivalency diploma or reaches 21 years of age, whichever occurs first.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Illinois, Minnesota, and Michigan elected to extend foster care to all youth allowed under 42 USC 675 (8) (B). Iowa elected to extend foster care to age 20 for youth attending high school or obtaining their GED.
17. Contact Name				18. Contact Phone Number
DCF/Kim Swissdorf				261-0616

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 amends child welfare licensing rules that affect small businesses to allow placements of youth who are eligible for an extension under ss. 48.366 and 938.366, Stats. Allowing youth to be in out-of-home care longer will have a positive economic impact on child welfare providers.

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

not applicable

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:

not applicable

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

not applicable

5. Describe the Rule's Enforcement Provisions

There are a wide range of enforcement mechanisms in s. 48.715, Stats.

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

⍽ Yes X No

Notice of Hearings

Employee Trust Funds

CR 14-055

The Wisconsin department of employee trust funds proposes an order to repeal sections ETF 10.01 (3i) (Note), 20.01, 20.17 (2) (d), 20.35 (9), 20.37 (2) (e), 41, 70.02 (2), (3), (12), and (14), 70.03 (5) to (7), 70.04 (5) (c), 70.05 (4), 70.06, 70.09 (2) and (5), 70.10 (2) (c), and (3) to (5); to amend sections ETF 10.01 (3i) , 10.03 (1) , 10.08 (2) (a) and (c) 2. and 3. , 10.60 (2) , 10.633 (1) (a) to (c) , 11.04 (5) (e) , 20.02 (2) (b) and (c) , 20.02 (3) (c) , 20.025 (2) , 20.17 (2) (f) 1. (intro.) , (4) (b) 3. b. , (c) 7. (intro.) , a. and e. , 20.35 (3) (d) 4. , 40.01 (1) (b) and (2m) (a) and (b) , 50.48 (1) , (2) (Note), (3) (a), (b) 5., (4) (b) 3., and (c), 50.50 (1) (c) 2. and (5) (b), 50.52 (1) (b) 3., 60.60 (5) (c) and (f), 70.01, 70.02 (1), (11) and (13), 70.03 (3), (4) and (8) to (10), 70.04 (4), (5) (intro.) and (6), 70.05 (title), (1) (intro.), (a) 1., and (d), 70.07 (title), (1) (a), (b), (d), (e), (g), (i), and (2), 70.08 (1), (3) (intro.), (a) 1. and 2., (b), and (b) 1., 70.09 (1), and 70.10 (2) (intro.) and (d), 70.12 and 70.15; to repeal and recreate sections ETF 20.02 (3) (a) and 20.17 (4) (c) 6. ; and to create sections ETF 10.01 (3e) , 20.02 (3) (d) , 20.17 (4) (c) 8. , and 52.16 (5) (c) ; relating to technical and minor substantive changes in existing ETF administrative rules.

Hearing Information

Date:   Monday, October 27, 2014
Time:   1:00 p.m.
Location:   Department of Employee Trust Funds
  801 West Badger Road
  Madison, WI

Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building. The public hearing sites are accessible to people with disabilities. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please contact David Nispel, General Counsel, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707. The e-mail address: [e-mail] . The telephone number is: [phone].

Place Where Comments are to be Submitted and Deadline For Submissions

Written comments on the proposed rule may be submitted to David Nispel, General Counsel, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 p.m. on October 27, 2014 .

Free Copies of Proposed Rule

Copies of the proposed rule are available without cost by contacting the General Counsel, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707-7931. You can also obtain a copy by calling [phone] or by emailing [e-mail] .

Analysis Prepared by the Department of Employee Trust Funds

Statutes interpreted

Sections 40.01 (1) and (2) , 40.05 (4) (b) , 40.23 (2m) (er) and (3) (b) , 40.26 , 40.285 (2) (b) , 40.55 , and 40.80 , Stats.

Statutory authority

Sections 40.03 (2) (i) , (ig) , and (ir) and 227.11 (2) (a) , Stats.

Explanation of agency authority

By statute, the ETF Secretary is expressly authorized, with appropriate board approval, to promulgate rules required for the efficient administration of any benefit plan established in ch. 40 of the Wisconsin statutes.

In addition, each state 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.

Related statutes or rules

There are no other related statutes or administrative rules directly related to this technical rule.

Plain language analysis

The objective of this technical rule is to make technical updates to existing ETF rules, delete obsolete language in ETF rules, create consistency with provisions in 2013 Wisconsin Act 20 related to rehired annuitants, and make other minor substantive changes.

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

The only federal regulations that may be affected by this proposed rule are provisions of the Internal Revenue Code regulating qualified pension plans. The Wisconsin Retirement System is required to be maintained as a qualified plan by s. 40.015 , Stats.

Comparison with rules in adjacent states

Periodically, retirement systems in adjacent states promulgate technical rules to update existing administrative rules.

Summary of factual data and analytical methodologies

The department is proposing this rule to update existing rules and interpretations of existing statutes.

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

This rule does not have an effect on small businesses because private employers and their employees do not participate in, and are not covered by, the Wisconsin Retirement System. Please see economic impact analysis below.

Effect on Small Business

The rule has no effect on small businesses.

Regulatory Flexibility Analysis

The proposed rule has no effect on small businesses because only governmental employers and their employees may participate in the benefit programs under ch. 40 of the statutes administered by the Department of Employee Trust Funds.

Fiscal Estimate

Please see the fiscal estimate below.

Agency Contact Person

Please direct any questions about the proposed rule to David Nispel, General Counsel, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707. The e-mail address: [e-mail] . The telephone number is: [phone].

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
ETF 10, 11, 20, 40, 41, 52, 55, 60, and 70
3. Subject
Technical and minor substantive changes in existing ETF administrative rules
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   ⍽ 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
The objective of this technical rule is to make technical updates to existing ETF rules, delete obsolete language in ETF rules, create consistency with provisions in 2013 Wisconsin Act 20 related to rehired annuitants, and make other minor substantive changes.
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.
Information, including the proposed rule language, will be made available by posting on the ETF website and the Wisconsin administrative rules website and by submitting the information to the Governor's Office of Regulatory Compliance.
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)
No substantive impact is anticipated.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Implementation of the Rule will update ETF adminstrative code provisions to be consistent with recent statutory changes. This will enhance clarity and minimize confusion for the general public and public employers. The Rule deletes obsolete language from ETF administrative code provisions, such as multiple references throughout ETF Chapter 70 to "primary and alternative" plans within the Wisconsin Deferred Compensation Program. Such changes moderize the code and bring it into conformance with present-day realities. The Rule also makes minor changes to reflect current ETF administrative practices and to correct minor technical inacuracies in the existing code. The alternative would be to fail to comply with recent legislative changes, and allow obsolete language to continue to exist.
14. Long Range Implications of Implementing the Rule
Implementation will bring the affected ETF rules into compliance with recent legislative changes, update affected ETF rules to reflect current administrative practices and delete obsolete language from ETF rules.
15. Compare With Approaches Being Used by Federal Government
Not applicable
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Periodically, retirement systems in adjacent states promulgate technical rules to update existing administrative rules.
17. Contact Name				18. Contact Phone Number
David H. Nispel, General Counsel				608-264-6936

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)

Not applicable

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

Not applicable

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:

Small business analysis is not applicable.

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

Not applicable

5. Describe the Rule's Enforcement Provisions

Not applicable

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

⍽ Yes X No