The text of Engrossed 2003 Assembly Bill 267 consists of the bill, as affected by
the following documents adopted in the assembly on October 2, 2003: the bill as
affected by Assembly Amendment 1, Assembly Amendment 2, Assembly
Amendment 3, and Assembly Amendment 7.
Content of Engrossed 2003 Assembly Bill 267:
Under current law, an agency that proposes an administrative rule that affects
small businesses (a business that employs fewer than 25 full-time employes or has

gross annual sales of less than $2,500,000), is required to consider ways to reduce the
impact of the rule on small businesses, including creating less stringent compliance
requirements for small businesses or exempting small businesses from the rule.
Currently, the agency proposing the rule must give small businesses the opportunity
to participate in the rule-making process. Agencies are also currently required to
prepare a regulatory flexibility analysis of any rule that affects a small business,
including a summary of changes made in the rule as a result of suggestions by small
businesses and the estimated costs that small businesses may incur to comply with
the proposed rule.
This bill creates a Small Business Regulatory Review Board and requires an
agency to submit to that board any proposed rule that may have a significant
economic impact on small businesses. The board is authorized to analyze the rule
and notify the proposing agency if the board determines that the agency failed to
consider ways to reduce the proposed rule's impact on small businesses or failed to
properly prepare the regulatory flexibility analysis. The board may suggest ways
that the agency can modify the rule and may return the rule to the agency if the rule
does not detail how the rule will be enforced.
The bill redefines "small business" to include any business with 25 or fewer
employees or with gross annual sales of less than $5,000,000. The bill requires every
agency, in cooperation with the Department of Administration, to ensure the
accuracy, integrity, and consistency of the data that the agency uses when preparing
a proposed rule.
The bill gives small businesses the right to seek an injunction against the
imposition of a penalty from an agency resulting from the small business's action
that was in response to inaccurate information provided by the agency or due to the
failure of the agency to provide requested advice. For purposes of this provision, a
small business does not include a child care institution, such as a day care center or
shelter care facility, or an institution licensed by the Department of Health and
Family Services to provide direct treatment services to clients.
The bill requires the Joint Legislative Council to create an Internet site that
includes a copy of each proposed rule that is submitted to the council. The site must
be searchable and include a section devoted to proposed rules affecting small
businesses, an electronic address and telephone number of an agency contact for a
rule, the council's report on the proposed rule, the time and place of any public
hearing on the proposed rule, and the place where comments may be submitted
regarding a proposed rule.
The bill requires every state agency to review all of its rules and guidelines
during the next five years to determine if any of the rules or guidelines place an
unnecessary burden on small businesses, and to repeal or amend any rules or
guidelines that do so.
The bill also gives immunity from imposition of a penalty to any small business
that voluntarily discloses information to the appropriate agency about a possible
violation of an administrative rule if a number of conditions are met, including the
business making the disclosure within 45 days after learning of the violation,
making a good faith effort to comply with the rule, and cooperating with the agency

in any resulting investigation. The immunity does not apply if the violation resulted
in serious harm or in a substantial economic benefit to the violator which gave the
violator an advantage over its business competitors. For purposes of this provision,
a small business does not include a child care institution, such as a day care center
or shelter care facility, or an institution licensed by the Department of Health and
Family Services to provide direct treatment services to clients.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB267-engrossed, s. 1 1Section 1. 15.155 (5) of the statutes is created to read:
AB267-engrossed,3,122 15.155 (5) Small business regulatory review board. There is created a small
3business regulatory review board, attached to the department of commerce under s.
415.03. The board shall consist of a representative of the department of
5administration, a representative of the department of agriculture, trade and
6consumer protection, a representative of the department of commerce, a
7representative of the department of health and family services, a representative of
8the department of natural resources, 6 representatives of small businesses, as
9defined in s. 227.114 (1), who shall be appointed for 3-year terms, and the
10chairpersons of one senate and one assembly committee concerned with small
11businesses. The representatives of the departments shall be selected by the
12secretary of that department.
AB267-engrossed, s. 2 13Section 2. 227.114 (1) (a) of the statutes is amended to read:
AB267-engrossed,4,214 227.114 (1) (a) In this section, "small business" means a business entity,
15including its affiliates, which is independently owned and operated and not
16dominant in its field, and which employs 25 or fewer than 25 full-time employees or
17which has gross annual sales of less than $2,500,000. For purposes of a specific rule,
18an agency may define small business to include more employees or greater gross
19annual sales if necessary to adapt the rule to the needs and problems of small

1businesses. A "small business" may also be defined in accordance with other
2standards established by an agency by rule
$5,000,000.
AB267-engrossed, s. 3 3Section 3. 227.114 (2) (intro.) of the statutes is amended to read:
AB267-engrossed,4,64 227.114 (2) (intro.) When an agency proposes or revises a rule that may have
5an effect on small businesses, the agency shall consider each of the following methods
6for reducing the impact of the rule on small businesses:
AB267-engrossed, s. 4 7Section 4. 227.114 (6m) of the statutes is created to read:
AB267-engrossed,4,188 227.114 (6m) If a small business is subject to a penalty from an administrative
9agency as the result of an action or omission by the small business due to the failure
10by the agency to provide requested advice or in response to inaccurate or inconsistent
11advice given to the small business by an employee, officer, or agent of the agency, the
12small business may commence an action in the circuit court for Dane County for
13injunctive relief. The circuit court may issue an order enjoining the imposition of the
14penalty if the court determines that the action or omission of the small business that
15resulted in the penalty was in response to the agency's inaccurate or inconsistent
16advice or failure of the agency to provide requested advice. Notwithstanding sub. (1)
17(a), in this subsection, "small business" does not include an entity, as defined in s.
1848.685 (1) (b) or 50.065 (1) (c).
AB267-engrossed, s. 5 19Section 5. 227.114 (7m) of the statutes is created to read:
AB267-engrossed,4,2520 227.114 (7m) The agency shall designate a small business regulatory
21coordinator to act as a contact person for small business regulatory issues. The
22agency shall include in the notice under s. 227.17 the electronic mail address and
23telephone number of the small business regulatory coordinator and a link to an
24Internet site that allows a person to review the rule and make comments regarding
25the rule.
AB267-engrossed, s. 6
1Section 6. 227.135 (1) (e) of the statutes is created to read:
AB267-engrossed,5,22 227.135 (1) (e) A description of all of the entities that will be affected by the rule.
AB267-engrossed, s. 7 3Section 7. 227.14 (2m) of the statutes is created to read:
AB267-engrossed,5,104 227.14 (2m) Quality of agency data. Each agency shall, in cooperation with
5the department of administration, ensure the accuracy, integrity, and consistency of
6the data that is used when preparing a proposed rule and when completing an
7analysis of the proposed rule under sub. (2). Each agency shall reduce the amount
8of cross-references to the statutes in proposed and final rules. A person affected by
9the proposed rule may submit comments to the agency regarding the accuracy,
10integrity, or consistency of that data.
AB267-engrossed, s. 8 11Section 8. 227.14 (2t) of the statutes is created to read:
AB267-engrossed,5,1612 227.14 (2t) Enforcement provisions. Except as provided in subs. (1m) and (1s),
13each proposed rule shall include provisions detailing how the rule will be enforced.
14If a proposed rule does not include enforcement provisions, the small business
15regulatory review board may return the rule to the submitting agency for an
16appropriate enforcement provision.
AB267-engrossed, s. 9 17Section 9. 227.15 (1m) of the statutes is created to read:
AB267-engrossed,5,2518 227.15 (1m) Internet access to proposed rule. The joint legislative council
19shall create and maintain an Internet site that includes a copy of each proposed rule
20received under sub. (1) in a format that allows the site to be searched using keywords.
21Each agency shall provide the joint legislative council with the proposed rules and
22other information needed to comply with this subsection in the format required by
23the joint legislative council. The Internet site shall include a section devoted to
24proposed rules affecting small businesses, as defined in s. 227.114 (1). The Internet
25site shall also include all of the following:
AB267-engrossed,6,2
1(a) The electronic mail address and telephone number of an agency contact
2person for each proposed rule.
AB267-engrossed,6,33 (b) The material required under s. 227.14 (2), (3), and (4).
AB267-engrossed,6,54 (c) The written report of the legislative council staff review of the proposed rule
5prepared under sub. (2) and any agency comments regarding that report.
AB267-engrossed,6,86 (d) The time, date, and place of any public hearing specified in the notice in s.
7227.17 as soon as that notice is submitted to the revisor of statutes under s. 227.17
8(1) (a).
AB267-engrossed,6,109 (e) The place where comments on the proposed rule should be submitted and
10the deadline for submitting those comments.
AB267-engrossed, s. 10 11Section 10. 227.19 (3r) of the statutes is created to read:
AB267-engrossed,6,2512 227.19 (3r) Fiscal effect of rule. On the same day that an agency submits
13a notice under sub. (2) regarding a proposed rule that may have a significant
14economic impact on small businesses, the agency shall submit the proposed rule and
15the report required under sub. (3) to the small business regulatory review board. The
16board may use cost-benefit analysis to determine the fiscal effect of the rule on small
17businesses and shall determine whether the agency has complied with sub. (3) (e) or
18s. 227.114. If the board determines that the agency failed to comply with sub. (3) (e)
19or s. 227.114, the board shall notify the agency of that determination and ask the
20agency to comply with those provisions. In addition, the board may submit suggested
21changes in the proposed rule to the agency, including proposals to reduce the use of
22cross-references in the rule. The board shall send a copy of any suggestions and of
23any notice of failure to comply with sub. (3) (e) or s. 227.114 to each committee to
24which the proposed rule was referred under sub. (2). The notification of
25noncompliance may include a request that the agency do any of the following:
AB267-engrossed,7,2
1(a) Explain why the agency has not incorporated comments received from small
2businesses regarding the proposed rule.
AB267-engrossed,7,43 (b) Verify that the proposed rule does not conflict with, overlap, or duplicate
4other rules or federal regulations.
AB267-engrossed,7,75 (c) Require the inclusion of fee information and fee schedules in the regulatory
6flexibility analysis, including why fees are necessary and for what purpose the fees
7will be used.
AB267-engrossed, s. 11 8Section 11. 227.22 (2) (e) of the statutes is created to read:
AB267-engrossed,7,119 227.22 (2) (e) The rule has a significant economic impact on small businesses,
10as defined in s. 227.114 (1), in which case the rule applies to small businesses on the
11first day of the 3rd month commencing after the date of publication.
AB267-engrossed, s. 12 12Section 12. 227.24 (3m) of the statutes is created to read:
AB267-engrossed,7,2313 227.24 (3m) Review by the small business regulatory review board. On the
14same day that the agency files a rule under sub. (3) that may have a significant
15economic impact on small businesses, as defined in s. 227.114 (1), the agency shall
16submit a copy of the rule to the small business regulatory review board. The board
17may use cost-benefit analysis to determine the fiscal effect of the emergency rule on
18small businesses and shall determine whether the agency complied with s. 227.114
19or 227.19 (3) (e). If the board determines that the agency failed to comply with s.
20227.114 or 227.19 (3) (e), the board shall notify the agency of that determination and
21ask the agency to comply with those provisions. In addition, the board may submit
22suggested changes in the proposed rule to the agency. The notification of
23noncompliance may include a request that the agency do any of the following:
AB267-engrossed,7,2524 (a) Explain why the agency has not incorporated comments received from small
25businesses regarding the emergency rule.
AB267-engrossed,8,2
1(b) Verify that the emergency rule does not conflict with, overlap, or duplicate
2other rules or federal regulations.
AB267-engrossed, s. 13 3Section 13. 227.30 of the statutes is created to read:
AB267-engrossed,8,11 4227.30 Review of administrative rules or guidelines. (1) Each agency
5shall, during the 5-year period beginning on the effective date of this subsection ....
6[revisor inserts date], review the rules and guidelines of the agency to determine
7whether any of those rules or guidelines place an unnecessary burden on the ability
8of small businesses, as defined in s. 227.114 (1), to conduct their affairs. If an agency
9determines that a rule or guideline places an unnecessary burden on the ability of
10a small business to conduct its affairs, the agency shall repeal the rule or guideline
11or amend the rule or guideline to remove the unnecessary burden.
AB267-engrossed,8,13 12(2) In reviewing a rule or guideline under this section, the agency shall consider
13all of the following:
AB267-engrossed,8,1414 (a) The continued need for the rule or guideline.
AB267-engrossed,8,1615 (b) The nature of the complaints and comments received from the public
16regarding the rule or guideline.
AB267-engrossed,8,1717 (c) The complexity of the rule or guideline.
AB267-engrossed,8,1918 (d) The extent to which the rule or guideline overlaps, duplicates, or conflicts
19with federal regulations, other state rules, or local ordinances.
AB267-engrossed,8,2020 (e) The length of time since the rule or guideline has been evaluated.
AB267-engrossed,8,2321 (f) The degree to which technology, economic conditions, or other factors have
22changed in the subject area affected by the rule or guideline since the rule or
23guideline was promulgated or established.
AB267-engrossed,9,4 24(3) The agency shall annually, on the first day of the 12th month beginning
25after the effective date of this subsection .... [revisor inserts date], for the 5-year

1period, submit a report to the legislature under s. 13.172 (2) describing the agency's
2review of its rules and guidelines and any actions taken regarding those rules or
3guidelines during the previous year. The agency shall send a copy of that report to
4the small business regulatory review board.
AB267-engrossed, s. 14 5Section 14. 227.40 (2) (f) of the statutes is created to read:
AB267-engrossed,9,66 227.40 (2) (f) Proceedings under s. 227.114 (6m) or 227.14 (2t).
AB267-engrossed, s. 15 7Section 15. 227.485 (2) (c) of the statutes is amended to read:
AB267-engrossed,9,118 227.485 (2) (c) "Small business" means a business entity, including its
9affiliates, which is independently owned and operated, and which employs 25 or
10fewer than 25 full-time employees or which has gross annual sales of less than
11$2,500,000 $5,000,000.
AB267-engrossed, s. 15t 12Section 15t. 814.245 (2) (b) of the statutes is amended to read:
AB267-engrossed,9,1613 814.245 (2) (b) "Small business" means a business entity, including its
14affiliates, which is independently owned and operated, and which employs 25 or
15fewer than 25 full-time employees or which has gross annual sales of less than
16$2,500,000 $5,000,000.
AB267-engrossed, s. 16 17Section 16. 814.245 (5) (a) 2. of the statutes is amended to read:
AB267-engrossed,9,2118 814.245 (5) (a) 2. Attorney or agent fees may not be awarded in excess of $75
19$150 per hour unless the court determines that an increase in the cost of living or a
20special factor, such as the limited availability of qualified attorneys or agents,
21justifies a higher fee.
AB267-engrossed, s. 17 22Section 17. 895.59 of the statutes is created to read:
AB267-engrossed,9,24 23895.59 Liability exemption; disclosure of rule violations. (1) In this
24section:
AB267-engrossed,9,2525 (a) "Agency" has the meaning given in s. 227.01 (1).
AB267-engrossed,10,2
1(b) "Small business" has the meaning given in s. 227.114 (1), but does not
2include an entity, as defined in s. 48.685 (1) (b) or 50.065 (1) (c).
AB267-engrossed,10,6 3(2) A small business that voluntarily discloses information to the appropriate
4agency about an actual or potential violation of an administrative rule shall be
5immune from the imposition of a civil or criminal penalty that could be imposed for
6the violation if all of the following apply.
AB267-engrossed,10,87 (a) The voluntary disclosure is made within 45 days after the small business
8knew that an actual or potential violation occurred.
AB267-engrossed,10,129 (b) The small business making the disclosure initiates an appropriate and good
10faith effort to achieve compliance with the administrative rule, pursues compliance
11with due diligence and promptly corrects the noncompliance after discovery of the
12violation.
AB267-engrossed,10,1413 (c) The small business cooperates with any reasonable request by the agency
14in any investigation that results from the disclosure.
AB267-engrossed,10,16 15(3) A penalty may be imposed for the violation of an administrative rule
16notwithstanding sub. (2) if any of the following applies:
AB267-engrossed,10,1817 (a) The violation resulted in serious harm or endangerment to public health,
18safety, or welfare.
AB267-engrossed,10,2019 (b) The violation resulted in a substantial economic benefit that gave the
20violator a clear advantage over its business competitors.
AB267-engrossed,10,2221 (c) The small business that committed the violation has a pattern of continuous
22or repeated violations of administrative rules.
AB267-engrossed, s. 18 23Section 18. Nonstatutory provisions.
AB267-engrossed,11,424 (1) Notwithstanding the length of terms specified for the representatives of
25small businesses of the small business regulatory review board under section 15.155

1(5) of the statutes, as created by this act, 3 of the initial representatives of small
2businesses shall be appointed for terms expiring on May 1, 2005, and the other 3
3initial representatives of small businesses shall be appointed for terms expiring on
4May 1, 2006.
AB267-engrossed, s. 19 5Section 19. Effective date.
AB267-engrossed,11,76 (1) This act takes effect on the first day of the 4th month beginning after
7publication.
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