AB767: Bill Text

1. Provide assistance to small businesses to help small businesses comply with rules promulgated by the agency.

2. Establish reduced fines and alternative enforcement mechanisms for minor violations of administrative rules by small businesses.

3. Consider the use of a written warning or alternative penalty against a small business found to be in violation of a rule if the small businesses made a good faith effort to comply with the rule and the rule does not pose a threat to public health, safety, or welfare or to the environment or the workplace.

Small business regulatory coordinators and the Office of the Small Business Advocate

Under current law, each agency must designate a small business regulatory coordinator to act as a point of contact within the agency for regulatory issues involving small businesses. Current law defines "agency" to mean a board, commission, committee, department, or officer in the state government, except the governor, a district attorney, or a military or judicial officer. Also under current law, Commerce must establish and operate a small business ombudsman clearinghouse to facilitate communication between state agencies and small businesses.

This bill changes the name of the ombudsman clearinghouse to the Office of the Small Business Advocate (office). The bill requires each agency to designate one employee to serve as the agency's small business regulatory coordinator and clarifies that the small business regulatory coordinator of each agency must work with the office to facilitate communication between small businesses and state agencies.

The bill requires Commerce to model the office on the best practices of state and federal small business advocate organizations, to take a proactive role in maintaining and helping small businesses to grow, and to have the goal of creating jobs and a healthy small business sector. The bill also requires Commerce to designate at least one full-time employee to serve as staff to the office. The staff of the office must, in turn, serve as staff to the board and work together with the small business regulatory coordinator of each agency.

Also under the bill, the office must, upon the written request of a small business against which an agency has initiated an enforcement action, review and investigate the circumstances of the enforcement action and make recommendations regarding alternative enforcement to the enforcing agency. The office must annually report to the governor and to the legislature the role of the office in providing regulatory relief to and promoting regulatory compliance by small businesses.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB767, s. 1 Section 1. 15.155 (5) of the statutes is amended to read:

AB767,4,15 15.155 (5) Small business regulatory review board. There is created a small business regulatory review board, attached to the department of commerce under s. 15.03. The board shall consist of a representative of the department of administration; a representative of the department of agriculture, trade and consumer protection; a representative of the department of children and families; a representative of the department of commerce; a representative of the department of health services; a representative of the department of natural resources; a representative of the department of regulation and licensing; a representative of the department of revenue; a representative of the department of workforce development; 6 7 representatives of small businesses, as defined in s. 227.114 (1), who shall be appointed for 3-year terms;, and the chairpersons of one senate and one assembly committee concerned with small businesses, appointed as are members of standing committees. The representatives of the departments shall be selected by the secretary of that department.

AB767, s. 2 Section 2. 20.143 (1) (kc) of the statutes is amended to read:

AB767,5,2 20.143 (1) (kc) Clean air act compliance assistance. From moneys transferred from the appropriation account under s. 20.370 (2) (bg), the amounts in the schedule for assisting the department of natural resources in administering the small business stationary source technical and environmental compliance assistance program under s. 285.79 and for expenses related to serving as ombudsman an advocate for small business stationary sources as required under s. 560.03 (9) 560.038 (2).

AB767, s. 3 Section 3. 227.04 of the statutes is created to read:

AB767,5,5 227.04 Considerations for small business. (1) In this section, "small business" has the meaning given in s. 227.114 (1).

AB767,5,7 (2) Consistent with the requirements under s. 895.59 and, to the extent possible, each agency shall do all of the following:

AB767,5,9 (a) Provide assistance to small businesses to help small businesses comply with rules promulgated by the agency.

AB767,5,12 (b) Establish, by rule, reduced fines and alternative enforcement mechanisms for minor violations of administrative rules made by small businesses. The rules promulgated under this subdivision shall include a definition of "minor violation."

AB767,5,15 (c) In deciding whether to impose a fine against a small business found to be in violation of a rule, consider the appropriateness of a written warning, reduced fine, or alternative penalty if all of the following apply:

AB767,5,16 1. The small business has made a good faith effort to comply with the rule.

AB767,5,18 2. The rule violation does not pose a threat to public health, safety, or welfare, or to the environment or the workplace.

AB767, s. 4 Section 4. 227.114 (7m) of the statutes is amended to read:

AB767,6,2 227.114 (7m) The Each agency shall designate a at least one employee to serve as the small business regulatory coordinator to for the agency, and shall publicize that employee's electronic mail address and telephone number. The small business regulatory coordinator shall act as a contact person for small business regulatory issues for the agency and shall publicize that person's electronic mail address and telephone number cooperate with the staff of the office of the small business advocate under s. 560.038 to accomplish the objectives of this subsection and s. 560.038.

AB767, s. 5 Section 5. 227.14 (2g) (intro.) of the statutes is amended to read:

AB767,7,3 227.14 (2g) Review by the small business regulatory review board. (intro.) On the same day that an agency submits to the legislative council staff under s. 227.15 a proposed rule that may have a significant an economic impact on small businesses, the agency shall submit the proposed rule, the analysis required under sub. (2), and a description of its actions taken to comply with s. 227.114 (2) and (3) to the small business regulatory review board. The board may use cost-benefit analysis to determine the fiscal effect of the rule on small businesses and shall determine whether the proposed rule will have a significant impact on a substantial number of small businesses and whether the agency has complied with subs. (2) and (2m) and s. 227.114 (2) and (3). Except as provided in subs. (1m) and (1s), each proposed rule shall include provisions detailing how the rule will be enforced. If the board determines that the rule does not include an enforcement provision or that the agency failed to comply with sub. (2) or (2m) or s. 227.114 (2) or (3), the board shall notify the agency of that determination and ask the agency to comply with any of those requirements. If the board determines that the proposed rule will have a significant economic impact on a substantial number of small businesses, the board may submit to the agency suggested changes in the proposed rule to minimize the economic impact of the proposed rule, or may recommend the withdrawal of the proposed rule under sub. (6). In addition, the board may submit other suggested changes in the proposed rule to the agency, including proposals to reduce the use of cross-references in the rule. The board shall send a report of those suggestions any suggested changes and of any notice of failure to include enforcement provisions or to comply with sub. (2) or (2m) or s. 227.114 (2) or (3) to the legislative council staff. The notification to the agency may include a request that the agency do any of the following:

AB767, s. 6 Section 6. 227.19 (3m) of the statutes is amended to read:

AB767,7,8 227.19 (3m) Analysis not required. The final regulatory flexibility analysis specified under sub. (3) (e) is not required for any rule if the agency, after complying with s. 227.114 (1) to (5), board determines that the rule will not have a significant economic impact on a substantial number of small businesses.

AB767, s. 7 Section 7. 227.24 (3m) (intro.) of the statutes is amended to read:

AB767,8,2 227.24 (3m) Review by the small business regulatory review board. (intro.) On the same day that the agency files a rule under sub. (3) that may have a significant an economic impact on small businesses, as defined in s. 227.114 (1), the agency shall submit a copy of the rule to the small business regulatory review board. The board may use cost-benefit analysis to determine the fiscal effect of the emergency rule on small businesses and shall determine whether the emergency rule will have a significant economic impact on a substantial number of small businesses and whether the agency complied with ss. 227.114 (2) and (3) and 227.14 (2m). If the board determines that the emergency rule will have a significant economic impact on a substantial number of small businesses, the board may submit to the agency and to the legislative council staff suggested changes in the emergency rule to minimize the economic impact of the emergency rule. If the board determines that the agency failed to comply with s. 227.114 (2) or (3) or 227.14 (2m), the board shall notify the agency of that determination and ask the agency to comply with any of those provisions. In addition, the board may submit other suggested changes in the proposed rule to the agency and may include a request that the agency do any of the following:

AB767, s. 8 Section 8. 285.79 (3) (intro.) of the statutes is amended to read:

AB767,8,8 285.79 (3) Assistance program. (intro.) The department shall, in cooperation with the office of the small business ombudsman clearinghouse advocate under s. 560.03 (9) 560.038, develop and administer a small business stationary source technical and environmental compliance assistance program. The program shall include all of the following:

AB767, s. 9 Section 9. 560.03 (9) of the statutes is renumbered 560.038 (2) and amended to read:

AB767,8,25 560.038 (2) Establish The department shall establish and operate a small business ombudsman clearinghouse for business and industry the office to facilitate the flow of information from between other state and federal agencies and business and industry, to assist state agencies in establishing methods to encourage the participation of small businesses in rule making under s. 227.114 (4), and to serve as ombudsman for small business stationary sources, as defined in s. 285.79 (1), in connection with the implementation of the federal clean air act, 42 USC 7401 to 7671q. The office shall be modeled on the best practices of both state and federal small business advocate organizations, shall take a proactive role in maintaining and helping small businesses grow economically, and shall have the goal of creating jobs and a healthy small business sector. The office shall be staffed by at least one full-time employee of the department. The staff of the office shall serve as staff to the small business regulatory review board and shall cooperate with the small business regulatory coordinator designated by each agency under s. 227.114 (7m) to accomplish the objectives of this section, as appropriate.

AB767, s. 10 Section 10. 560.038 (title) and (1) (intro.) of the statutes are created to read:

AB767,9,3 560.038 (title) Office of the small business advocate. (1) (intro.) In this section:

AB767, s. 11 Section 11. 560.038 (1) (a), (b), (c), (d) and (e) of the statutes are created to read:

AB767,9,5 560.038 (1) (a) "Agency" has the meaning given in s. 227.01 (1).

AB767,9,6 (b) "Office" means the office of the small business advocate.

AB767,9,7 (c) "Small business" has the meaning given in s. 227.114 (1).

AB767,9,9 (d) "Small business regulatory coordinator" means the employee of an agency designated by the agency as required under s. 227.114 (7m).

AB767,9,10 (e) "Small business stationary sources" has the meaning given in s. 285.79 (1).

AB767, s. 12 Section 12. 560.038 (3) of the statutes is created to read:

AB767,9,12 560.038 (3) The office shall do all of the following:

AB767,9,18 (a) Upon the written request of a small business against which an agency has initiated an enforcement action that may, in the opinion of the small business, cause unnecessary hardship to the small business, review and investigate the circumstances of the enforcement action and prepare recommendations regarding alternative penalties to be imposed upon the small business that will, in the opinion of the office, achieve regulatory compliance by the small business.

AB767,9,20 (b) Submit to the small business regulatory coordinator of the agency initiating the enforcement action under par. (a) all of the following:

AB767,9,21 1. A copy of the written request submitted to the office under par. (a).

AB767,9,22 2. Any recommendations prepared by the office under par. (a).

AB767,9,25 3. A statement requesting that the small business regulatory coordinator submit to the office within 45 days after receipt of the statement a written response describing the enforcement action taken by the agency against the small business and whether any considerations were made for the small business as a result of the recommendations made under subd. 2.

AB767,10,3 (c) Annually do all of the following:

AB767,10,6 1. Compile the written requests received by the office under par. (a), the submissions made by the office under par. (b), and any communications received from enforcing agencies under par. (b).

AB767,10,10 2. Analyze and evaluate the information under subd. 1. and any other relevant information to determine regulatory enforcement trends and the efficacy of the office in providing regulatory relief to and promoting regulatory compliance by small businesses.

AB767,10,12 3. Report the information and findings under subds. 1. and 2. to the governor and to the legislature under s. 13.172 (2).

AB767, s. 13 Section 13. 560.11 (2) of the statutes is amended to read:

AB767,10,19 560.11 (2) The employees of the department of commerce who staff the office of the small business ombudsman clearinghouse advocate under s. 560.03 (9) 560.038 and the employees of the department of natural resources who staff the small business stationary source technical and environmental compliance assistance program under s. 285.79 shall provide the small business environmental council with the assistance necessary to comply with sub. (1).

AB767, s. 14 Section 14. Initial applicability.

AB767,10,23 (1) The treatment of section 227.14 (2g) (intro.) of the statutes first applies to a proposed administrative rule submitted by an agency to the legislative council staff under section 227.15 of the statutes on the effective date of this subsection.

AB767,11,3 (2) The treatment of section 227.24 (3m) (intro.) of the statutes first applies to an emergency rule filed with the legislative reference bureau on the effective date of this subsection.

AB767,11,4 (End)