AB1070,41 20Section 41 . 227.135 (1) (h) of the statutes is created to read:
AB1070,33,421 227.135 (1) (h) For a proposed emergency rule promulgated under s. 227.24,
22an explanation of why the rule is necessary for the preservation of the public peace,
23health, safety, or welfare. If the rule is exempt from the required finding of
24emergency, the statement of scope shall cite the act number and section or the statute
25section authorizing the promulgation of an emergency rule or a statement that the

1rule is promulgated at the direction of the joint committee for review of
2administrative rules under s. 227.26 (2) (b). The agency shall also include a
3statement as to whether the agency will promulgate a corresponding permanent rule
4and the agency's anticipated time line for promulgating the permanent rule.
AB1070,42 5Section 42 . 227.135 (2) of the statutes is renumbered 227.135 (2) (a) 1. and
6amended to read:
AB1070,33,187 227.135 (2) (a) 1. An Except as provided in subd. 2., an agency that has
8prepared a statement of the scope of the proposed rule shall present the statement
9to the department of administration, which shall make a determination as to
10whether the agency has the explicit authority to promulgate the rule as proposed in
11the statement of scope and shall report the statement of scope and its determination
12to the governor who, in his or her discretion, may approve or reject the statement of
13scope. The Except as provided in subd. 2., the agency may not send the statement
14to the legislative reference bureau for publication under sub. (3) until the governor
15issues a written notice of approval of the statement and may not, without the written
16approval of the governor, send the statement to the legislative reference bureau for
17publication under sub. (3) more than 30 days after the date of the governor's approval
18of the statement of scope
.
AB1070,34,2 19(b) The An agency that has prepared a statement of the scope of the proposed
20rule
shall also present the statement to the individual or body with policy-making
21powers over the subject matter of the proposed rule for approval. The individual or
22body with policy-making powers may not approve the statement until at least 10
23days after publication of the statement under sub. (3) and, if a preliminary public
24hearing and comment period are held by the agency under s. 227.136, until the

1individual or body has received and reviewed any public comments and feedback
2received from the agency under s. 227.136 (5).
AB1070,34,9 3(c) No state employee or official may perform any activity in connection with
4the drafting of a proposed rule, except for an activity necessary to prepare the
5statement of the scope of the proposed rule, until the governor and the individual or
6body with policy-making powers over the subject matter of the proposed rule
7approve
the statement has been approved as required under pars. (a) and (b). This
8subsection paragraph does not prohibit an agency from performing an activity
9necessary to prepare a petition and proposed rule for submission under s. 227.26 (4).
AB1070,43 10Section 43 . 227.135 (2) (a) 2. of the statutes is created to read:
AB1070,34,1211 227.135 (2) (a) 2. The requirement under subd. 1. does not apply to statements
12of scope prepared by the department of public instruction.
AB1070,44 13Section 44 . 227.135 (3) of the statutes is amended to read:
AB1070,35,214 227.135 (3) If the governor approves a An agency that prepares a statement
15of the scope of a proposed rule under sub. (2), the agency (1) shall, subject to sub. (2)
16(a) 1.,
send an electronic copy of the statement to the legislative reference bureau,
17in a format approved by the legislative reference bureau, for publication in the
18register. On the same day that the agency sends the statement to the legislative
19reference bureau, the agency shall send a copy of the statement to the secretary of
20administration and to the chief clerks of each house of the legislature, who shall
21distribute the statement to the cochairpersons of the joint committee for review of
22administrative rules. The agency shall include with any statement of scope sent to
23the legislative reference bureau the date of the governor's approval of the statement
24of scope if such approval is required under sub. (2) (a). The legislative reference
25bureau shall assign a discrete identifying number to each statement of scope and

1shall include that number and the date of the governor's approval, if required, in the
2publication of the statement of scope in the register.
AB1070,45 3Section 45 . 227.135 (4) of the statutes is renumbered 227.135 (4) (a) (intro.)
4and amended to read:
AB1070,35,135 227.135 (4) (a) (intro.) If at any time after a statement of the scope of a proposed
6rule is approved under sub. (2) the agency changes the scope of the proposed rule in
7any meaningful or measurable way, including changing the scope of the proposed
8rule so as to include in the scope any activity, business, material, or product that is
9not specifically included in the original scope of the proposed rule,
the agency shall
10prepare and obtain approval of a revised statement of the scope of the proposed rule
11in the same manner as the original statement was prepared and approved under
12subs. (1) and (2). No For purposes of this subsection, a meaningful or measurable
13 change includes any of the following:
AB1070,35,18 14(b) Whenever an agency is required to prepare a revised statement of scope
15under this subsection, no
state employee or official may perform any activity in
16connection with the drafting of the proposed rule except for an activity necessary to
17prepare the revised statement of the scope of the proposed rule until the revised
18statement is so approved as provided in sub. (2).
AB1070,46 19Section 46 . 227.135 (4) (a) 1. to 6. of the statutes are created to read:
AB1070,35,2020 227.135 (4) (a) 1. A change to the objectives of the proposed rule.
AB1070,35,2121 2. A change to the basis and purpose of the proposed rule.
AB1070,35,2222 3. A change to the policies to be included in the proposed rule.
AB1070,35,2323 4. A change to the entities affected by the proposed rule.
AB1070,35,2524 5. A change to the overall breadth or scope of the regulation in the proposed
25rule.
AB1070,36,3
16. A change to the scope of the proposed rule so as to include in the scope any
2activity, business, material, or product that is not specifically included in the original
3statement.
AB1070,47 4Section 47 . 227.135 (6) of the statutes is created to read:
AB1070,36,75 227.135 (6) An agency that intends to concurrently promulgate an emergency
6rule and a permanent rule that are identical in substance may submit one statement
7of scope indicating this intent.
AB1070,48 8Section 48 . 227.137 (2) of the statutes is amended to read:
AB1070,36,149 227.137 (2) An agency shall prepare an economic impact analysis for a
10proposed rule before submitting the proposed rule to the legislative council staff
11under s. 227.15. Prior to preparing an economic impact analysis as provided in this
12subsection, the agency shall review the statement of scope for the proposed rule
13prepared under s. 227.135 to determine whether a revised statement of scope is
14required under s. 227.135 (4).
AB1070,49 15Section 49. 227.137 (2m) of the statutes is created to read:
AB1070,36,1916 227.137 (2m) An agency's economic impact analysis under sub. (2) or revised
17economic impact analysis under sub. (4) shall be prepared and submitted separately
18from any fiscal estimate or revised fiscal estimate prepared and submitted under s.
19227.14 (4) (a) or (d).
AB1070,50 20Section 50 . 227.137 (3) (e) of the statutes is renumbered 227.137 (3) (e) (intro.)
21and amended to read:
AB1070,37,222 227.137 (3) (e) (intro.) A determination made in consultation with the
23businesses, local governmental units, and individuals that may be affected by the
24proposed rule as to whether the proposed rule would adversely affect in a material
25way the economy, a sector of the economy, productivity, jobs, or the overall economic

1competitiveness of this state. The agency shall make the determination required
2under this paragraph by doing all of the following:
AB1070,51 3Section 51 . 227.137 (3) (e) 1. to 4. of the statutes are created to read:
AB1070,37,54 227.137 (3) (e) 1. Compiling a list of affected persons and potential economic
5concerns identified in the comments solicited by the agency.
AB1070,37,66 2. Contacting affected persons to discuss economic concerns.
AB1070,37,77 3. Considering any raised concerns in drafting the economic impact analysis.
AB1070,37,108 4. Documenting in the economic impact analysis the persons who were
9consulted and whether the agency's determination is disputed by any of the affected
10persons.
AB1070,52 11Section 52 . 227.137 (3m) of the statutes is created to read:
AB1070,37,2312 227.137 (3m) (a) When soliciting comments under sub. (3) for an economic
13impact analysis, an agency shall accept comments for a period of at least 14 calendar
14days if, under s. 227.135 (1) (g), the statement of scope for the proposed rule indicates
15that the proposed rule will have minimal or no economic impact, at least 30 calendar
16days if it indicates a moderate economic impact, and at least 60 calendar days if it
17indicates a significant economic impact or if the agency anticipates that the proposed
18rule will result in $10,000,000 or more in implementation and compliance costs being
19incurred by or passed along to businesses, local governmental units, and individuals
20over any 2-year period. If the agency subsequently determines that the anticipated
21economic impact will be greater than indicated in the statement of scope, the agency
22shall adjust the comment period accordingly. An agency may not reduce a comment
23period once determined under this subsection.
AB1070,37,2524 (b) This subsection does not apply to a person preparing an independent
25economic impact analysis under sub. (4m).
AB1070,53
1Section 53. 227.137 (4) of the statutes is amended to read:
AB1070,38,192 227.137 (4) On the same day that the agency submits the economic impact
3analysis to the legislative council staff under s. 227.15 (1), the agency shall also
4submit that analysis to the department of administration, to the governor, and to the
5chief clerks of each house of the legislature, who shall distribute the analysis to the
6presiding officers of their respective houses, to the chairpersons of the appropriate
7standing committees of their respective houses, as designated by those presiding
8officers, and to the cochairpersons of the joint committee for review of administrative
9rules. If a proposed rule is modified after the economic impact analysis is submitted
10under this subsection so that the economic impact of the proposed rule is
11significantly changed, the agency shall prepare a revised economic impact analysis
12for the proposed rule as modified. For purposes of this subsection, a significant
13change includes an increase or a decrease of at least 10 percent or $50,000, whichever
14is greater, in the expected implementation and compliance costs reasonably expected
15to be incurred by or passed along to a majority of the businesses, local governmental
16units, and individuals as a result of the proposed rule, as identified under sub. (3) (b),
17or a significant change in the persons expected to be affected by the proposed rule.

18A revised economic impact analysis shall be prepared and submitted in the same
19manner as an original economic impact analysis is prepared and submitted.
AB1070,54 20Section 54. 227.138 (1) (intro.) of the statutes is renumbered 227.138 (1) and
21amended to read:
AB1070,39,222 227.138 (1) The joint committee for review of administrative rules may direct
23an agency to prepare a retrospective economic impact analysis for any of an agency's
24rules that are published in the code. The committee may identify one or more specific
25chapters, sections, or other subunits in the code that are administered by the agency

1as the rules that are to be the subject of the analysis and may specify a deadline for
2the preparation of the analysis.
AB1070,39,14 3(1r) A retrospective economic impact analysis shall contain information on the
4economic effect of the rules on specific businesses, business sectors, public utility
5ratepayers, local governmental units, and the state's economy as a whole. When
6preparing the analysis, the agency or person preparing the analysis shall solicit
7information and advice from businesses, associations representing businesses, local
8governmental units, and individuals that have been affected by the rules. The
9agency or person shall prepare the retrospective economic impact analysis in
10coordination with local governmental units that have been affected by the rules. The
11agency or person may request information that is reasonably necessary for the
12preparation of a retrospective economic impact analysis from other businesses,
13associations, local governmental units, and individuals and from other agencies.
14The retrospective economic impact analysis shall include all of the following:
AB1070,55 15Section 55 . 227.138 (1) (a) to (h) of the statutes are renumbered 227.138 (1r)
16(a) to (h).
AB1070,56 17Section 56. 227.138 (1g) of the statutes is created to read:
AB1070,40,218 227.138 (1g) Within 90 days after an agency submits a retrospective economic
19impact analysis under sub. (2), either cochairperson of the joint committee for review
20of administrative rules may request an independent retrospective economic impact
21analysis to be prepared using the same procedure and payment methods described
22under s. 227.137 (4m) (am) and (b). A person preparing an independent retrospective
23economic impact analysis under this subsection shall prepare the independent
24retrospective economic impact analysis for the same rules that were the subject of

1the agency's analysis under sub. (1) and shall include the information that is
2required under sub. (1r).
AB1070,57 3Section 57 . 227.138 (2) of the statutes is amended to read:
AB1070,40,134 227.138 (2) An agency or person that prepares a retrospective economic impact
5analysis under sub. (1) or (1g) shall submit that analysis to the department of
6administration, to the governor, and to the chief clerks of each house of the
7legislature, who shall distribute the analysis to the presiding officers of their
8respective houses, to the chairpersons of the appropriate standing committees of
9their respective houses, as designated by those presiding officers, and to the
10cochairpersons of the joint committee for review of administrative rules. The agency
11or person shall also send an electronic copy of the analysis to the legislative reference
12bureau, in a format approved by the legislative reference bureau, for publication in
13the register.
AB1070,58 14Section 58 . 227.18 (3m) of the statutes is created to read:
AB1070,40,1615 227.18 (3m) If, after holding a hearing under this section, an agency makes any
16changes to the proposed rule, the agency shall do all of the following:
AB1070,40,1917 (a) Review the statement of scope of the proposed rule prepared under s.
18227.135 to determine whether a revised statement of scope is required under s.
19227.135 (4).
AB1070,40,2220 (b) Review the economic impact analysis for the proposed rule prepared under
21s. 227.137 to determine whether a revised economic impact analysis is required
22under s. 227.137 (4).
AB1070,59 23Section 59 . 227.185 of the statutes is amended to read:
AB1070,41,7 24227.185 Approval by governor. After a proposed rule is in final draft form,
25the agency shall submit the proposed rule to the governor for approval. The governor,

1in his or her discretion, may approve or reject the proposed rule. If the governor
2approves a proposed rule, the governor shall provide the agency with a written notice
3of that approval. No proposed rule may be submitted to the legislature for review
4under s. 227.19 (2) unless the governor has approved the proposed rule in writing.
5The agency shall notify the joint committee for review of administrative rules
6whenever it submits a proposed rule for approval under this section. This section
7does not apply to proposed rules prepared by the department of public instruction.
AB1070,60 8Section 60. 227.20 (3) (a) of the statutes is amended to read:
AB1070,41,99 227.20 (3) (a) That the rule was duly promulgated by the agency.
AB1070,61 10Section 61. 227.20 (3) (c) of the statutes is repealed.
AB1070,62 11Section 62 . 227.24 (1) (e) 1d. of the statutes is amended to read:
AB1070,41,2412 227.24 (1) (e) 1d. Prepare a statement of the scope of the proposed emergency
13rule as provided in s. 227.135 (1), obtain approval of the statement as provided in s.
14227.135 (2), send the statement to the legislative reference bureau for publication in
15the register as provided in s. 227.135 (3), and hold a preliminary public hearing and
16comment period if directed under s. 227.136 (1). If the agency changes the scope of
17a proposed emergency rule as described in s. 227.135 (4), the agency shall prepare
18and obtain approval of a revised statement of the scope of the proposed emergency
19rule as provided in s. 227.135 (4). No state employee or official may perform any
20activity in connection with the drafting of a proposed emergency rule , except for an
21activity necessary to prepare the statement of the scope of the proposed emergency
22rule, until the governor approves the statement, if such approval is required, and the
23individual or body with policy-making powers over the subject matter of the
24proposed emergency rule approve approves the statement.
AB1070,63 25Section 63 . 227.24 (1) (e) 1g. of the statutes is amended to read:
AB1070,42,8
1227.24 (1) (e) 1g. Submit the proposed emergency rule in final draft form to the
2governor for approval. The governor, in his or her discretion, may approve or reject
3the proposed emergency rule. If the governor approves a proposed emergency rule,
4the governor shall provide the agency with a written notice of that approval. An
5agency may not file an emergency rule with the legislative reference bureau as
6provided in s. 227.20 and an emergency rule may not be published until the governor
7approves the emergency rule in writing. This subdivision does not apply to proposed
8emergency rules of the department of public instruction.
AB1070,64 9Section 64 . 227.26 (2) (im) of the statutes is created to read:
AB1070,42,1210 227.26 (2) (im) Multiple suspensions. Notwithstanding pars. (i) and (j), the
11committee may act to suspend a rule as provided under this subsection multiple
12times.
AB1070,65 13Section 65 . 227.40 (1) of the statutes is amended to read:
AB1070,43,514 227.40 (1) Except as provided in sub. (2), the exclusive means of judicial review
15of the validity of a rule or guidance document shall be an action for declaratory
16judgment as to the validity of the rule or guidance document brought in the circuit
17court for the county where the party asserting the invalidity of the rule or guidance
18document
resides or has its principal place of business or, if that party is a
19nonresident or does not have its principal place of business in this state, in the circuit
20court for the county where the dispute arose. The officer or other agency whose rule
21or guidance document is involved shall be the party defendant. The summons in the
22action shall be served as provided in s. 801.11 (3) and by delivering a copy to that
23officer or, if the agency is composed of more than one person, to the secretary or clerk
24of the agency or to any member of the agency. The court shall render a declaratory
25judgment in the action only when it appears from the complaint and the supporting

1evidence that the rule or guidance document or its threatened application interferes
2with or impairs, or threatens to interfere with or impair, the legal rights and
3privileges of the plaintiff. A declaratory judgment may be rendered whether or not
4the plaintiff has first requested the agency to pass upon the validity of the rule or
5guidance document
in question.
AB1070,66 6Section 66 . 227.40 (2) (intro.) of the statutes is amended to read:
AB1070,43,87 227.40 (2) (intro.) The validity of a rule or guidance document may be
8determined in any of the following judicial proceedings when material therein:
AB1070,67 9Section 67 . 227.40 (2) (e) of the statutes is amended to read:
AB1070,43,1410 227.40 (2) (e) Proceedings under s. 66.191, 1981 stats., or s. 40.65 (2), 106.50,
11106.52, 303.07 (7) or 303.21 or ss. 227.52 to 227.58 or under ch. 102, 108 or 949 for
12review of decisions and orders of administrative agencies if the validity of the rule
13or guidance document involved was duly challenged in the proceeding before the
14agency in which the order or decision sought to be reviewed was made or entered.
AB1070,68 15Section 68 . 227.40 (3) (intro.) of the statutes is renumbered 227.40 (3) (ag) and
16amended to read:
AB1070,44,217 227.40 (3) (ag) In any judicial proceeding other than one set out above under
18sub. (1) or (2)
, in which the invalidity of a rule or guidance document is material to
19the cause of action or any defense thereto, the assertion of such that invalidity shall
20be set forth in the pleading of the party so maintaining the invalidity of such the rule
21or guidance document in that proceeding. The party so asserting the invalidity of
22such the rule or guidance document shall, within 30 days after the service of the
23pleading in which the party sets forth such the invalidity, apply to the court in which
24such the proceedings are had for an order suspending the trial of said the proceeding

1until after a determination of the validity of said the rule or guidance document in
2an action for declaratory judgment under sub. (1) hereof.
AB1070,69 3Section 69 . 227.40 (3) (a) of the statutes is renumbered 227.40 (3) (ar) and
4amended to read:
AB1070,44,115 227.40 (3) (ar) Upon the hearing of such the application, if the court is satisfied
6that the validity of such the rule or guidance document is material to the issues of
7the case, an order shall be entered staying the trial of said proceeding until the
8rendition of a final declaratory judgment in proceedings to be instituted forthwith
9by the party asserting the invalidity of such the rule or guidance document. If the
10court shall find finds that the asserted invalidity of a the rule or guidance document
11is not material to the case, an order shall be entered denying the application for stay.
AB1070,70 12Section 70 . 227.40 (3) (b) and (c) of the statutes are amended to read:
AB1070,44,1913 227.40 (3) (b) Upon the entry of a final order in said the declaratory judgment
14action, it shall be the duty of the party who asserts the invalidity of the rule or
15guidance document
to formally advise the court of the outcome of the declaratory
16judgment action so brought as ordered by the court. After the final disposition of the
17declaratory judgment action the court shall be bound by and apply the judgment so
18entered in the trial of the proceeding in which the invalidity of the rule or guidance
19document
is asserted.
AB1070,44,2420 (c) Failure to set forth the invalidity of a rule or guidance document in a
21pleading or to commence a declaratory judgment proceeding within a reasonable
22time pursuant to such the order of the court or to prosecute such the declaratory
23judgment action without undue delay shall preclude such the party from asserting
24or maintaining such that the rule or guidance document is invalid.
AB1070,71 25Section 71 . 227.40 (4) (a) of the statutes is amended to read:
AB1070,45,5
1227.40 (4) (a) In any proceeding pursuant to this section for judicial review of
2a rule or guidance document, the court shall declare the rule or guidance document
3invalid if it finds that it violates constitutional provisions or exceeds the statutory
4authority of the agency or was promulgated or adopted without compliance with
5statutory rule-making or adoption procedures.
AB1070,72 6Section 72 . 227.40 (6) of the statutes is amended to read:
AB1070,45,137 227.40 (6) Upon entry of a final order in a declaratory judgment action under
8sub. (1) with respect to a rule, the court shall send an electronic notice to the
9legislative reference bureau of the court's determination as to the validity or
10invalidity of the rule, in a format approved by the legislative reference bureau, and
11the legislative reference bureau shall publish a notice of that determination in the
12Wisconsin administrative register under s. 35.93 (2) and insert an annotation of that
13determination in the Wisconsin administrative code under s. 13.92 (4) (a).
AB1070,73 14Section 73. 227.46 (1) (h) of the statutes is amended to read:
AB1070,45,1615 227.46 (1) (h) Make or recommend Recommend findings of fact, conclusions of
16law and decisions to the extent permitted by law.
AB1070,74 17Section 74. 227.46 (2) of the statutes is amended to read:
AB1070,46,618 227.46 (2) Except as provided in sub. (2m) and s. 227.47 (2), in any contested
19case which is a class 2 or class 3 proceeding, where a majority of the officials of the
20agency who are to render the final decision are not present for the hearing, the
21hearing examiner presiding at the hearing shall prepare a proposed decision,
22including findings of fact, conclusions of law, order and opinion, in a form that may
23be adopted by the agency as the final decision in the case under s. 227.47 (3). The
24proposed decision shall be a part of the record and shall be served by the agency on
25all parties. Each party adversely affected by the proposed decision shall be given an

1opportunity to file objections to the proposed decision, briefly stating the reasons and
2authorities for each objection, and to argue with respect to them before the officials
3who are to participate in the decision. The agency may direct whether such
4argument shall be written or oral. If an agency's decision varies in any respect from
5the proposed decision of the hearing examiner, the agency's decision shall include an
6explanation of the basis for each variance.
AB1070,75 7Section 75. 227.46 (2m) of the statutes is amended to read:
AB1070,46,258 227.46 (2m) In any hearing or review assigned to a hearing examiner under
9s. 227.43 (1) (bg), the hearing examiner presiding at the hearing shall prepare a
10proposed decision, including findings of fact, conclusions of law, order and opinion,
11in a form that may be adopted by the agency as the final decision in the case under
12s. 227.47 (3)
. The proposed decision shall be a part of the record and shall be served
13by the division of hearings and appeals in the department of administration on all
14parties. Each party adversely affected by the proposed decision shall be given an
15opportunity to file objections to the proposed decision within 15 days, briefly stating
16the reasons and authorities for each objection, and to argue with respect to them
17before the administrator of the division of hearings and appeals. The administrator
18of the division of hearings and appeals may direct whether such argument shall be
19written or oral. If the decision of the administrator of the division of hearings and
20appeals varies in any respect from the proposed decision of the hearing examiner, the
21decision of the administrator of the division of hearings and appeals shall include an
22explanation of the basis for each variance. The decision of the administrator of the
23division of hearings and appeals is a final decision of the agency subject to judicial
24review under s. 227.52. The department of transportation may petition for judicial
25review.
AB1070,76
1Section 76. 227.46 (3) (a) of the statutes is repealed.
AB1070,77 2Section 77. 227.46 (8) of the statutes is repealed.
AB1070,78 3Section 78. 227.47 (1) of the statutes is amended to read:
AB1070,47,124 227.47 (1) Except as provided in sub. (2), every proposed or final decision of an
5agency or
a hearing examiner following a hearing and every final decision of an
6agency shall be in writing accompanied by findings of fact and conclusions of law.
7The findings of fact shall consist of a concise and separate statement of the ultimate
8conclusions upon each material issue of fact without recital of evidence. Every
9proposed or final decision shall include a list of the names and addresses of all
10persons who appeared before the agency in the proceeding who are considered
11parties for purposes of review under s. 227.53. The agency shall by rule establish a
12procedure for determination of parties.
AB1070,79 13Section 79. 227.47 (3) of the statutes is created to read:
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