LRB-1560/3
MG/RK/AG/FK/RC/TD/MD:all:jm
2015 - 2016 LEGISLATURE
April 14, 2015 - Introduced by Representative Ballweg, cosponsored by Senators
Roth and Farrow. Referred to Committee on State Affairs and Government
Operations.
AB163,5,20 1An Act to repeal 15.07 (5) (i), 15.18, 15.183, 15.185 (title), 15.185 (7) (title),
215.40, 15.405 (12) (title), 15.945, 20.144 (title), 20.144 (intro.), 20.165 (intro.),
320.165 (1) (gc), 20.165 (1) (ke), 20.165 (2) (de), 20.165 (2) (g), 20.165 (2) (kg),
420.165 (2) (km), 20.292 (2), 20.320 (3) (title), 20.320 (3) (q), 20.923 (4) (f) 3f.,
520.923 (4) (f) 8m., 20.923 (12), 38.50 (title), 38.50 (1) (a), 38.50 (1) (f), 38.50 (1)
6(g), 38.50 (5), 38.50 (7), 38.50 (8), 38.50 (10), 38.50 (13) (a) 2. b., 38.50 (13) (a)
72. e., 38.50 (13) (d), 46.90 (5m) (br) 5g., 55.043 (4) (b) 5g., 101.31, 101.657, 138.12
8(1) (a), 138.14 (1) (f), 145.245, 214.01 (1) (im), 214.72 (1) (am), 215.01 (6), 217.02
9(2m), 218.02 (1) (d), 218.04 (1) (c), 218.05 (1) (d), 220.01 (1m), 222.0102 (3),
10224.71 (1e), 224.90 (1), 230.08 (2) (e) 4f., 230.08 (2) (e) 11m., 230.08 (2) (v),
11230.339, 250.041 (1) (b), 254.115 (1) (d), 281.59 (1m) (c), 440.03 (13) (b) 73.,
12440.03 (13) (b) 74., 440.08 (2) (a) 70., 440.08 (2) (a) 71., 462.01 (3), 551.102 (5m),
13552.01 (1) and 553.03 (3); to renumber 15.406 (title), 15.407 (title), 16.28,
1416.283, 16.285, 16.287, 20.144 (1) (title), 20.144 (1) (a), 20.144 (1) (i), 20.144 (1)

1(j), 20.144 (1) (m), 20.144 (1) (u), 20.165 (1) (gm), 20.165 (1) (h), 20.165 (1) (hg),
220.165 (1) (i), 20.165 (1) (im), 20.165 (1) (jm), 20.165 (1) (k), 20.165 (1) (ka),
320.165 (1) (kb), 20.165 (1) (kc), 20.165 (1) (n), 20.165 (1) (o), 20.165 (1) (pz),
420.165 (1) (s), 20.165 (2) (title), 20.165 (2) (a), 20.165 (2) (ga), 20.165 (2) (gb),
520.165 (2) (h), 20.165 (2) (ka), 20.165 (2) (kd), 20.165 (2) (ks), 20.165 (2) (L),
620.165 (2) (La), 20.165 (2) (m), 20.165 (2) (ma), 20.165 (2) (q), 93.135 (1) (a),
7chapter 453 (title), 453.02, 453.04, 453.065, 453.068, 453.075 and 453.08; to
8renumber and amend
15.105 (32), 15.105 (33), 15.185 (1), 15.185 (3), 15.185
9(7) (a), 15.185 (7) (b), 15.405 (title), 15.405 (1), 15.405 (1m), 15.405 (2), 15.405
10(2m), 15.405 (3), 15.405 (3m), 15.405 (5), 15.405 (5g), 15.405 (6), 15.405 (6m),
1115.405 (7), 15.405 (7c), 15.405 (7e), 15.405 (7g), 15.405 (7m), 15.405 (7r), 15.405
12(8), 15.405 (9), 15.405 (10m), 15.405 (10r), 15.405 (11m), 15.405 (12), 15.405
13(16), 15.405 (17), 15.406 (2), 15.406 (3), 15.406 (4), 15.406 (5), 15.406 (6), 15.407
14(1m), 15.407 (2), 15.407 (2m), 15.407 (3), 15.407 (5), 15.407 (6), 15.407 (7),
1515.407 (8), 15.407 (9), 15.407 (10), 15.407 (11), 15.407 (12), 15.407 (13), 15.407
16(14), 15.407 (16), 15.407 (17), 15.407 (18), 20.144 (1) (g), 20.144 (1) (h), 20.165
17(1) (title), 20.165 (1) (a), 20.165 (1) (g), 20.165 (1) (m), 20.165 (2) (j), 20.505 (1)
18(gr), 38.50 (1) (intro.), (b), (c), (d) and (e), 38.50 (2), 38.50 (3), 38.50 (11), 38.50
19(12), 38.50 (13) (title), (a) (intro.), 1., 2. (intro.), a., c. and d., 3. and 4., (b) and
20(c), 145.01 (4m), 252.23, 252.24, 252.241, 252.245, 255.08, 453.03, 453.05,
21453.06, 453.062, 453.07 and 453.072; to amend 15.08 (1m) (a), 15.08 (1m) (am),
2215.085 (1m) (a), 15.085 (1m) (am), 16.75 (3m) (a) 1., 16.75 (3m) (a) 2., 16.75 (3m)
23(a) 3., 16.75 (3m) (a) 4., 16.75 (3m) (c) 5. a., 16.75 (3m) (c) 5. b., 16.854 (1) (a),
2416.854 (1) (b), 16.855 (10m) (ac), 16.855 (10n) (a), 16.87 (1) (am), 18.16 (1) (a),
2518.16 (1) (b), 18.16 (1) (c), 18.16 (1) (d), 18.64 (1) (a), 18.64 (1) (b), 18.64 (1) (c),

118.64 (1) (d), 18.77 (1) (a), 18.77 (1) (b), 18.77 (1) (c), 18.77 (1) (d), 20.292 (1) (gm),
220.292 (1) (gr), 20.370 (4) (mq), 20.435 (1) (gm), 20.445 (1) (km), 20.575 (1) (g),
320.912 (4), 20.923 (4) (c) 2., 20.923 (8), 25.185 (1) (a), 25.185 (1) (b), 25.185 (1)
4(c), 25.185 (1) (d), 25.40 (1) (a) 2., 25.43 (3), 25.46 (5c), 29.506 (7m) (a), 29.736
5(1) (b), 34.01 (2) (a), 34.03 (3), 34.03 (4), 34.08, 34.10, 36.34 (1) (a) 3., 38.04 (8)
6(a), 38.26 (1), 39.40 (1) (c), 39.44 (1) (a) 3., 41.53 (1) (h), 42.09 (3) (b), 45.20 (1)
7(d), 45.20 (2) (a) 1., 45.20 (2) (a) 2. (intro.), 45.20 (2) (c) 1., 45.20 (2) (d) 1. (intro.),
845.21 (2) (a), 45.44 (1) (a) 5., 45.44 (1) (a) 14., 45.44 (1) (b), 46.29 (3) (e), 46.90
9(5m) (br) 5., 49.857 (1) (d) 4., 54.15 (8) (a) 3., 55.043 (4) (b) 5., 59.57 (1) (b),
1066.1309 (1) (b) 1., 66.1317 (2) (a) 4., 67.12 (12) (a), 71.05 (6) (b) 28. (intro.), 71.07
11(5j) (a) 2d., 71.07 (5j) (a) 2m., 71.07 (5j) (c) 3., 71.07 (5r) (a) 2., 71.07 (5r) (a) 6.
12b., 71.26 (1) (d), 71.28 (5j) (a) 2d., 71.28 (5j) (a) 2m., 71.28 (5j) (c) 3., 71.28 (5r)
13(a) 2., 71.28 (5r) (a) 6. b., 71.47 (5r) (a) 2., 71.47 (5r) (a) 6. b., 73.0301 (1) (d) 3.,
1473.0301 (1) (d) 6., 73.0301 (1) (e), 84.075 (1c) (a), 84.075 (1c) (b), 84.076 (1) (c),
1584.076 (1) (d), 85.25 (2) (c) 1m. b., 93.20 (1), 93.22 (1), 93.22 (2), 93.22 (3), 94.67
16(33m), 94.67 (33t), 95.21 (1) (e), 95.21 (1) (em), 95.21 (2) (a), 101.02 (20) (b),
17101.02 (20) (c), 101.02 (20) (d), 101.02 (20) (e) 1., 101.02 (21) (b), 101.02 (21) (e)
181., 101.12 (1) (intro.), 101.149 (6) (b), 101.149 (8) (a), 101.573 (3) (a), 101.573 (5),
19101.654 (1m) (e), 101.935 (2) (e), 101.951 (7) (a), 101.951 (7) (b), 101.951 (7) (c),
20101.953 (1) (a), 101.973 (8), 107.30 (10), 107.31 (5) (a) (intro.), 108.227 (1) (e) 3.,
21108.227 (1) (e) 6., 108.227 (1) (f), 111.335 (1) (cx), 112.07 (1), 119.495 (2), 119.496
22(2), 125.04 (5) (a) 5., 125.17 (6) (a) (intro.), 134.66 (2m) (b), 138.055 (4) (d),
23138.056 (1) (a) 4. d., 138.09 (1d), 138.14 (9r) (f), 138.16 (1) (a), 145.01 (12), 145.02
24(title), 145.02 (2), 145.02 (4) (a), 145.045 (1), 145.045 (3), 145.17 (2), 145.19 (1b),
25145.19 (1m), 145.19 (2), 145.19 (3), 145.19 (6), 145.20 (2) (e), 145.20 (2) (g),

1145.20 (3) (title), 145.20 (3) (a) 1., 145.20 (3) (a) 2., 145.20 (3) (b), 145.20 (3) (c),
2145.20 (3) (d), 145.20 (5) (a), 145.20 (5) (am), 145.20 (5) (b), 145.20 (5) (c), 145.23,
3145.24 (1), 145.24 (2), 145.24 (3), 157.061 (2g), 157.062 (1), 157.062 (2), 157.062
4(6) (b), 157.062 (6m), 157.062 (9), 157.064 (7), 157.11 (9m), 157.12 (3) (b), 157.62
5(1) (a) (intro.), 157.62 (1) (c), 157.65 (1) (a), 157.65 (1) (b), 157.65 (2), 165.825,
6167.35 (7) (b), 167.35 (7) (c), 169.01 (35) (a), 173.05 (1) (b), 173.41 (2) (e), 173.41
7(12) (a) 4., 177.30 (2), 182.028, 186.098 (12), 186.235 (15) (b), 186.314 (2m) (e),
8200.49 (1) (b), 200.57 (1) (a), 200.57 (1) (b), 214.04 (21) (b), 214.48 (4) (a), 214.715
9(2), 214.72 (1) (b), 214.725 (5), 214.78 (3), 215.02 (4), 215.04 (1) (b), 215.04 (3),
10221.0303 (2), 221.0802, 227.01 (13) (zy), 227.52 (3), 227.59, 229.46 (1) (ag),
11229.46 (1) (b), 229.70 (1) (ag), 229.70 (1) (am), 229.70 (1) (b), 229.8273 (1) (am),
12229.8273 (1) (b), 229.8273 (1) (c), 229.845 (1) (ag), 229.845 (1) (am), 230.08 (2)
13(yb), 231.27 (1), 231.29 (1), 234.35 (1), 234.36 (1), 236.13 (2m), 250.041 (1) (e),
14252.12 (2) (a) 9., 252.12 (2) (c) 2., 257.01 (5) (a), 257.01 (5) (b), 281.33 (2), 281.57
15(7) (c) 1., 321.60 (1) (a) 4., 321.60 (1) (a) 12., 409.501 (1) (b), 426.103, 426.104 (2)
16(intro.), 426.203, chapter 440 (title), 440.01 (2) (cs), 440.03 (3), 440.03 (3q),
17440.03 (9) (a) 2., 440.03 (11m) (c), 440.03 (12m), 440.08 (2) (a) (intro.), 440.13
18(1) (b), 440.22 (2), 440.25, subchapter V (title) of chapter 440 [precedes 440.51],
19440.905 (1), 440.92 (2) (d), 440.945 (5) (b), 441.01 (7) (a) 2., 443.10 (6), 444.04,
20444.14, 450.03 (1) (e), 450.10 (3) (a) 8., 450.11 (1m), 450.125, 450.19 (1) (ar),
21452.13 (2) (b) 1., 452.13 (2) (b) 2., 452.13 (2) (b) 3., 452.13 (2) (bm), 452.13 (5),
22452.14 (5), 460.05 (1) (e) 1., 551.102 (1m), 551.202 (26) (f) (intro.), 551.202 (27)
23(h) (intro.), 551.205 (1) (b) 1. (intro.), 551.205 (3), 551.206, 551.601 (5), 551.605
24(3) (bm) 1., 551.614 (5), 552.23 (1), 553.605 (2), 553.73, 565.01 (4d), 565.01 (4e),
25601.415 (9), 601.72 (1) (intro.), 601.72 (2), 601.72 (3), 601.73 (1) (intro.), 601.73

1(1) (a), 601.73 (1) (b), 601.73 (2) (a), 601.73 (2) (b), 601.73 (3), 601.93 (2), 610.70
2(1) (a), 611.29 (1), 611.72 (1), 611.73 (1) (a), 611.74 (1), 611.76 (11), 613.01 (8)
3(title), 616.09 (1) (c) 2., 616.74 (1) (c), 632.10 (1), 644.09 (2), 766.565 (7), 813.16
4(7), 940.207 (title), 940.207 (2) (intro.), 940.207 (2) (a), 944.21 (8) (b) 3. a., 948.11
5(4) (b) 3. a., 978.05 (6) (a) and 995.55 (1) (b); and to create 15.135 (5) (title),
615.17, 20.001 (7), 20.115 (2) (jm), 20.142 (intro.), 20.142 (1) (title), 20.142 (1)
7(gm), 20.142 (1) (k), 20.142 (1) (m), 20.923 (4) (f) 3d., 50.92 (3m), 89.02 (3d),
889.063, 89.085, 93.135 (1) (ab), 100.67, 138.12 (1) (am), 145.01 (4m) (a), 145.01
9(4m) (b), 145.01 (4m) (c), 145.01 (4m) (d), 145.01 (4m) (e), 145.02 (2m), 145.19
10(6m), 145.20 (7), chapter 203 (title), 203.01, 214.01 (1) (f), 215.01 (6f), 217.02
11(2k), 218.02 (1) (dm), 218.04 (1) (bm), 218.05 (1) (cm), 230.08 (2) (e) 4g., 321.60
12(1) (a) 6m., 440.52 (title), 440.52 (7m), 440.52 (11) (bm), chapter 463 (title),
13463.18, 551.102 (4t), 552.01 (1m), 553.03 (2m) and 616.09 (1) (c) 3. of the
14statutes; relating to: elimination of the Department of Safety and Professional
15Services and the Department of Financial Institutions; elimination of the
16Educational Approval Board; creation of the Department of Financial
17Institutions and Professional Standards; transfer of the Veterinary Examining
18Board to the Department of Agriculture, Trade and Consumer Protection,
19providing an exemption from emergency rule procedures; requiring the
20exercise of rule-making authority; and making appropriations.
Analysis by the Legislative Reference Bureau
Commerce and economic development
Under current law, the Department of Financial Institutions (DFI) regulates
state-chartered banks, savings and loan associations, savings banks, and certain
operations of the securities industry in this state. DFI also reviews and files
charters, articles of incorporation, and other documents of business organizations

and registers and oversees the mortgage banking industry. Finally, DFI oversees
Uniform Commercial Code filings in this state and administers the Wisconsin
Consumer Act.
This bill transfers all of the functions of DFI, including functions of the Division
of Banking and the Division of Securities, to the Department of Financial
Institutions and Professional Standards (DFIPS). Additionally, this bill transfers
the Office of Credit Unions to DFIPS.
Under current law, the Department of Administration (DOA) administers
disabled veteran-owned business certifications, woman-owned business
certifications, and minority business certifications that are designed to encourage
the creation and foster the growth of Wisconsin businesses owned by women,
disabled veterans, or minorities. A business that qualifies for and maintains one of
those certifications may be eligible to receive certain advantages bidding on public
projects and other benefits. This bill transfers the administration of those
certifications to DFIPS.
Also under current law, there is attached to DOA a Small Business Regulatory
Review Board, which is tasked with reviewing and making reports concerning
proposed administrative rules that may have an economic impact on small
businesses. The Small Business Regulatory Review Board is advised by the Office
of Business Development, which is also attached to DOA. The bill transfers the
Small Business Regulatory Review Board and the Office of Business Development
from DOA to DFIPS.
education
Under current law, the Educational Approval Board (EAB), which is attached
to the Technical College System Board, inspects and approves private trade,
correspondence, business, and technical schools. The EAB also issues permits to,
and regulates, persons who solicit students for enrollment in these schools. The EAB
also performs certain functions related to the preservation of student records at
closed schools. The EAB also has certain consumer protection functions related to
deceptive practices involving institutions of higher education.
This bill eliminates the EAB. The bill eliminates some current functions of the
EAB, transfers some functions to DFIPS, and transfers some functions to the
Department of Agriculture, Trade and Consumer Protection (DATCP). Under the
bill, DFIPS must, upon application, issue written authorization to a proprietary
school if the school meets requirements established by rule by DFIPS. One
requirement is that the school must have accreditation recognized by the federal
Department of Education or by the Council for Higher Education Accreditation. The
EAB's record preservation functions are also transferred to DFIPS. Certain
consumer protection functions of the EAB are transferred to DATCP.
health and human services
The bill transfers oversight of tattooing, body piercing, and tanning from the
Department of Health Services, which currently regulates those areas, to DFIPS.
Safety and professional services
Under current law, the Department of Safety and Professional Services (DSPS)
and the various boards and councils attached to DSPS regulate professional

licensure and buildings and safety in Wisconsin. This bill eliminates DSPS and
transfers all of its functions to DFIPS. The bill attaches to DFIPS the various boards
and councils attached to DSPS under current law, except that the bill transfers the
Veterinary Examining Board to DATCP.
Under current law, DSPS administers the laws regulating private on-site
wastewater treatment systems. Generally, a private on-site wastewater treatment
system is a sewage treatment and disposal system serving a single structure with a
septic tank and soil absorption field located on the same parcel as the structure.
Current law also requires certain local governmental units to enact ordinances
regulating private on-site wastewater treatment systems.
This bill transfers DSPS's responsibilities with respect to administration of the
laws regulating private on-site wastewater treatment systems to the Department
of Natural Resources, except that the bill eliminates a grant program for individuals
and businesses served by failing private on-site wastewater treatment systems.
For further information see the state and local 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:
AB163,1 1Section 1. 15.07 (5) (i) of the statutes is repealed.
AB163,2 2Section 2. 15.08 (1m) (a) of the statutes is amended to read:
AB163,7,53 15.08 (1m) (a) Public members appointed under s. 15.405 15.175 or 15.407
415.177 shall have all the powers and duties of other members except they shall not
5prepare questions for or grade any licensing examinations.
AB163,3 6Section 3. 15.08 (1m) (am) of the statutes is amended to read:
AB163,7,137 15.08 (1m) (am) Public members appointed under s. 15.405 15.175 or 15.407
815.177 shall not be, nor ever have been, licensed, certified, registered, or engaged in
9any profession or occupation licensed or otherwise regulated by the board, examining
10board, or examining council to which they are appointed, shall not be married to any
11person so licensed, certified, registered, or engaged, and shall not employ, be
12employed by, or be professionally associated with any person so licensed, certified,
13registered, or engaged.
AB163,4
1Section 4. 15.085 (1m) (a) of the statutes is amended to read:
AB163,8,42 15.085 (1m) (a) Public members appointed under s. 15.406 15.176 shall have
3all of the powers and duties of other members except that they shall not prepare
4questions for or grade any licensing examinations.
AB163,5 5Section 5. 15.085 (1m) (am) of the statutes is amended to read:
AB163,8,116 15.085 (1m) (am) Public members appointed under s. 15.406 15.176 shall not
7be, nor ever have been, licensed, certified, registered, or engaged in any profession
8or occupation licensed or otherwise regulated by the affiliated credentialing board
9to which they are appointed, shall not be married to any person so licensed, certified,
10registered, or engaged, and shall not employ, be employed by, or be professionally
11associated with any person so licensed, certified, registered, or engaged.
AB163,6 12Section 6. 15.105 (32) of the statutes is renumbered 15.142 (18g) and amended
13to read:
AB163,8,1814 15.142 (18g) Office of business development. There is created an office of
15business development which is attached to the department of administration
16financial institutions and professional standards under s. 15.03. The office shall be
17under the direction and supervision of a director who shall be appointed by the
18governor to serve at his or her pleasure.
AB163,7 19Section 7. 15.105 (33) of the statutes is renumbered 15.142 (18r) and amended
20to read:
AB163,9,221 15.142 (18r) Small business regulatory review board. There is created a
22small business regulatory review board, attached to the department of
23administration financial institutions and professional standards under s. 15.03. The
24board shall consist of 7 representatives of small businesses, as defined in s. 227.114
25(1), who shall be appointed for 3-year terms, and the chairpersons of one senate and

1one assembly committee concerned with small businesses, appointed as are
2members of standing committees.
AB163,8 3Section 8. 15.135 (5) (title) of the statutes is created to read:
AB163,9,44 15.135 (5) (title) Veterinary examining board.
AB163,9 5Section 9. 15.17 of the statutes is created to read:
AB163,9,9 615.17 Department of financial institutions and professional standards.
7There is created a department of financial institutions and professional standards
8under the direction and supervision of the secretary of financial institutions and
9professional standards.
AB163,10 10Section 10. 15.18 of the statutes is repealed.
AB163,11 11Section 11. 15.183 of the statutes is repealed.
AB163,12 12Section 12. 15.185 (title) of the statutes is repealed.
AB163,13 13Section 13. 15.185 (1) of the statutes is renumbered 15.175 (14m) and
14amended to read:
AB163,9,2015 15.175 (14m) Banking review board. There is created in the department of
16financial institutions and professional standards a banking review board consisting
17of 5 persons, appointed for staggered 5-year terms. At least 3 members shall be
18experienced bankers having at least 5 years' experience in the banking business. No
19member is qualified to act in any matter involving a bank in which the member is
20an officer, director or stockholder, or to which the member is indebted.
AB163,14 21Section 14. 15.185 (3) of the statutes is renumbered 15.175 (15m) and
22amended to read:
AB163,9,2523 15.175 (15m) Savings institutions review board. There is created in the
24department of financial institutions and professional standards a savings
25institutions review board consisting of 5 members, at least 3 of whom shall have not

1less than 5 years' experience in the savings and loan or savings bank business in this
2state, appointed for 5-year terms.
AB163,15 3Section 15. 15.185 (7) (title) of the statutes is repealed.
AB163,16 4Section 16. 15.185 (7) (a) of the statutes is renumbered 15.175 (16m) and
5amended to read:
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