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STATE OF WISCONSIN
Department of Safety and Professional Services
IN THE MATTER OF RULEMAKING PROCEEDINGS BEFORE THE
DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES
ORDER OF THE DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES
ADOPTING RULES
(CLEARINGHOUSE RULE 16-092)
ORDER
An order of the department to repeal SPS 305.73 (3) (a) (Note) and amend SPS 305.73 (3) (a) and (4) (a) and (Note), (b) and (Note), and (c) (Note 1), relating to liquefied gas suppliers.
Analysis prepared by the Department of Safety and Professional Services.
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ANALYSIS
Statutes interpreted:
Section 101.16 (3g) (a), (3r), and (4), Stats.
Statutory authority:
Section 101.02 (1), Stats.
Explanation of agency authority:
Section 101.02 (1), Stats., provides “[t]he department shall adopt reasonable and proper rules and regulations relative to the exercise of its powers and authorities and proper rules to govern its proceedings and to regulate the mode and manner of all investigations and hearings.
Related statutes or rules:
None.
Plain language analysis:
The rules reflect the provisions of 2015 Wisconsin Act 327, which replaces the term “retail supplier” with the term “retailer” and changes the financial responsibility requirements for retailers of liquefied petroleum gas.
Current rules authorize a person applying for or holding a liquefied gas supplier or liquefied gas supplier – restricted license to have either 1) a surety bond, 2) an irrevocable letter of credit, or 3) commercial general liability insurance as the proof of financial responsibility required under s. 101.16, Stats. The rule amends s. SPS 305.73 to reflect the provisions of 2015 Wisconsin Act 327, which, effective October 1, 2016, eliminates the first 2 options listed above. Under the Act, a person applying for or holding a liquefied gas supplier or liquefied gas supplier – restricted license is required to have commercial general liability insurance.
Summary of, and comparison with, existing or proposed federal statutes and regulations:
None.
Comparison with rules in adjacent states:
An Internet-based search found the states of Illinois, Iowa, Michigan, and Minnesota do not have rules relating to the licensing of retail liquefied gas suppliers.
Summary of factual data and analytical methodologies:
The rules were developed by reviewing the provisions of 2015 Wisconsin Act 327 in conjunction with the current rules relating to liquefied gas suppliers under s. SPS 305.73.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The rules were posted for a period of 14 days to solicit public comment on economic impact, including how the proposed rules may affect businesses, local government units, and individuals. No comments were received.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis document is attached.
Effect on small business:
These 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 Kirsten.Reader@wisconsin.gov, or by calling (608) 267-2435.
Agency contact person:
Dale Kleven, 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 608-261-4472; email at DSPSAdminRules@wisconsin.gov.
Place where comments are to be submitted and deadline for submission:
Comments may be submitted to Dale Kleven, 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 53708-8935, or by email to DSPSAdminRules@wisconsin.gov. Comments must be received at or before the public hearing to be held at 8:00 a.m. on January 31, 2017, to be included in the record of rule-making proceedings.
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TEXT OF RULE
Section 1.   SPS 305.73 (3) (a) is amended to read:
  SPS 305.73 (3) (a) A person applying for either a liquefied gas supplier or a liquefied gas supplier — restricted license shall, provide proof of financial responsibility as required under s. 101.16 (3r) (c), Stats., obtain commercial general liability insurance as an endorsement to an existing policy or as a separate policy from an insurer, or a risk retention group, that is licensed to transact the business of insurance in this state or that is eligible to provide insurance as a surplus lines insurer in one or more states.
Section 2.   SPS 305.73 (3) (a) (Note) is repealed.
Section 3.   SPS 305.73 (4) (a) and (Note), (b) and (Note), and (c) (Note 1) are amended to read:  
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