The bill
The bill makes various changes regarding the rule-making procedures
established under current law. Significant changes regarding those procedures are
described below.
Submission statements of scope to DOA
The bill requires scope statements for proposed rules to be submitted to DOA
instead of to the governor. Following the submission, the bill requires DOA to make
a determination as to the agency's authority to promulgate the proposed rule and
report its determination to the governor, who may then approve or reject the
statement of scope as under current law.

Preliminary public hearings and comment periods on scope statements
The bill requires an agency, following approval of a scope statement by the
governor, to hold a preliminary public hearing and comment period on a scope
statement if directed to do so by a cochairperson of JCRAR. Following such a
directive, the agency must submit to the LRB a notice of the hearing and comment
period to allow for public comment and feedback on the scope statement. The agency
must hold the preliminary public hearing no sooner than the third day after
publication of the notice in the register and submit all comments and feedback
received to the agency head. A preliminary public hearing and comment period
under the bill is in addition to the public hearing required under current law for
certain rules.
Passage of bill required for certain rules
The bill provides that if an economic impact analysis, a revised economic impact
analysis, or an independent economic impact analysis for a proposed rule indicates
that $10 million or more in implementation and compliance costs are reasonably
expected to be incurred by or passed along to businesses, local governmental units,
and individuals over any two-year period as a result of the proposed rule, the agency
proposing the rule must stop work on the proposed rule and may not continue to
promulgate the rule except as follows:
1. The agency may resume the rule-making procedure for the proposed rule
upon enactment of a bill that authorizes its promulgation.
2. The agency may modify the proposed rule to address the implementation and
compliance costs of the proposed rule. If a revised economic impact analysis
prepared by an agency and any independent economic impact analysis prepared
following the modification all indicate that $10 million or more in implementation
and compliance costs are not reasonably expected to be incurred by or passed along
to businesses, local governmental units, and individuals over a two-year period as
a result of the proposed rule, the agency may then resume the rule-making
procedure for the proposed rule.
Independent economic impact analyses
The bill allows a cochairperson of JCRAR, after an agency submits a copy of an
economic impact analysis for a proposed rule to the legislature, but before the
proposed rule is submitted to DOA for review and final approval by the governor, to
request that an independent economic impact analysis be prepared for the proposed
rule. In that case, the cochairperson must contract for the preparation of the
independent economic impact analysis. The person preparing the independent
economic impact analysis must complete the independent economic impact analysis
within 60 days and must include most of the same information and analysis that is
required for an economic impact analysis prepared by an agency. If an independent
economic impact analysis is requested for a proposed rule, an agency may not submit
the proposed rule to DOA for final review until the agency receives the completed
independent economic impact analysis. Upon completion of an independent
economic impact analysis, the person preparing the analysis may submit a request
to JCRAR for reimbursement of its actual and necessary costs of completing the

analysis. The bill specifies circumstances under which either the agency or the
legislature must pay the costs of the independent economic impact analysis.
In addition, the bill allows JCRAR, when a proposed rule is before JCRAR for
final review, to request an independent economic impact analysis for the proposed
rule. If JCRAR requests an independent economic impact analysis at that time, the
analysis must similarly be completed within 60 days and JCRAR's review period is
extended to the tenth working day following receipt by JCRAR of the completed
analysis.
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:
AB42,1 1Section 1. 20.765 (1) (kt) of the statutes is created to read:
AB42,4,52 20.765 (1) (kt) Independent economic analyses for administrative rules. All
3moneys received from agencies under s. 227.137 (4m) (b) 2. a. to reimburse persons
4for conducting independent economic impact analyses under ss. 227.137 (4m) and
5227.19 (5) (b) 3.
AB42,2 6Section 2 . 35.93 (2) (b) 3. bm. of the statutes is created to read:
AB42,4,87 35.93 (2) (b) 3. bm. Notices of preliminary public hearings and comment periods
8under s. 227.136.
AB42,3 9Section 3. 227.12 (4) of the statutes is amended to read:
AB42,5,1510 227.12 (4) If a petition to the department of revenue establishes that the
11department has established a standard by which it is construing a state tax statute,
12but has not promulgated a rule to adopt the standard or published the standard in
13a manner that is available to the public, the department shall, as provided under s.
14227.135, submit a statement of the scope of the proposed rule to the governor
15department of administration no later than 90 days after receiving the petition. No
16later than 270 days after the statement is approved by the governor, the department

1shall submit the proposed rule in final draft form to the governor for the governor's
2approval, as provided under s. 227.185. At the department's request, the governor
3or the department of administration may, at any time prior to the expiration of any
4deadline specified in this subsection, extend the time for submitting the statement
5or proposed rule in draft form for any period not to exceed 60 days. The governor or
6the department of administration
may grant more than one extension under this
7subsection, but the total period for all such extensions may not exceed 120 days. The
8rule need not adhere to the standard established by the department, but shall
9address the same circumstances as the standard addresses. If the department fails
10to comply with this subsection, any of the petitioners may commence an action in
11circuit court to compel the department's compliance. If an action is commenced
12under this subsection, the court may compel the department to provide information
13to the court related to the degree to which the department is enforcing the standard,
14except that the information provided by the department shall not disclose the
15identity of any person who is not a party to the action.
AB42,4 16Section 4. 227.135 (2) of the statutes is amended to read:
AB42,6,1217 227.135 (2) An agency that has prepared a statement of the scope of the
18proposed rule shall present the statement to the governor and to the individual or
19body with policy-making powers over the subject matter of the proposed rule for
20approval
department of administration, which shall make a determination as to the
21agency's authority to promulgate the rule as proposed in the statement of scope and
22shall report the statement of scope and its determination to the governor who, in his
23or her discretion, may approve or reject the statement of scope
. The agency may not
24send the statement to the legislative reference bureau for publication under sub. (3)
25until the governor issues a written notice of approval of the statement. The agency

1shall also present the statement to the individual or body with policy-making powers
2over the subject matter of the proposed rule for approval.
The individual or body with
3policy-making powers may not approve the statement until at least 10 days after
4publication of the statement under sub. (3) and, if a preliminary public hearing and
5comment period are held by the agency under s. 227.136, until the individual or body
6has received and reviewed any public comments and feedback received from the
7agency under s. 227.136 (5)
. No state employee or official may perform any activity
8in connection with the drafting of a proposed rule, except for an activity necessary
9to prepare the statement of the scope of the proposed rule or an activity necessary
10to draft a corresponding emergency rule under s. 227.24,
until the governor and the
11individual or body with policy-making powers over the subject matter of the
12proposed rule approve the statement.
AB42,5 13Section 5. 227.135 (3) of the statutes is amended to read:
AB42,7,214 227.135 (3) If the governor approves a statement of the scope of a proposed rule
15under sub. (2), the agency shall send an electronic copy of the statement to the
16legislative reference bureau, in a format approved by the legislative reference
17bureau, for publication in the register. On the same day that the agency sends the
18statement to the legislative reference bureau, the agency shall send a copy of the
19statement to the secretary of administration and to the chief clerks of each house of
20the legislature, who shall distribute the statement to the cochairpersons of the joint
21committee for review of administrative rules
. The agency shall include with any
22statement of scope sent to the legislative reference bureau the date of the governor's
23approval of the statement of scope. The legislative reference bureau shall assign a
24discrete identifying number to each statement of scope and shall include that

1number and the date of the governor's approval in the publication of the statement
2of scope in the register.
AB42,6 3Section 6. 227.136 of the statutes is created to read:
AB42,7,9 4227.136 Preliminary public hearing and comment period. (1) Within
510 days after publication of a statement of the scope of a proposed rule under s.
6227.135 (3), either cochairperson of the joint committee for the review of
7administrative rules may submit a written directive to the agency that prepared the
8statement for the agency to hold a preliminary public hearing and comment period
9on the statement of scope as provided in this section.
AB42,7,19 10(2) If the agency is directed to hold a preliminary public hearing and comment
11period on a statement of scope as provided in sub. (1) or if the agency otherwise opts
12to do so on its own initiative, the agency shall submit to the legislative reference
13bureau, in a format approved by the legislative reference bureau, a notice of a
14preliminary public hearing and comment period to allow for public comment and
15feedback on the statement of scope. The agency may also take any other action it
16considers necessary to provide notice of the preliminary public hearing and comment
17period to other interested persons. The notice shall be approved by the individual
18or body with policy-making powers over the subject matter of the proposed rule and
19shall include all of the following:
AB42,7,2020 (a) A statement of the date, time, and place of the preliminary public hearing.
AB42,7,2221 (b) The place where comments on the statement of scope should be submitted
22and the deadline for submitting those comments.
AB42,7,25 23(3) The agency shall hold the preliminary public hearing and comment period
24in accordance with the notice required under sub. (2), but may not hold the hearing
25sooner than the 3rd day after publication of the notice in the register.
AB42,8,2
1(4) The agency shall conduct a hearing under this section in accordance with
2s. 227.18.
AB42,8,6 3(5) The agency shall report all public comments and feedback on the statement
4of scope of the proposed rule that the agency receives at the preliminary public
5hearing and comment period to the individual or body with policy-making powers
6over the subject matter of the proposed rule.
AB42,8,9 7(6) Failure of any person to receive notice of a preliminary public hearing as
8provided in this section is not grounds for invalidating any resulting rule if notice of
9the hearing was published in the register in accordance with s. 35.93 (2) (b) 3. bm.
AB42,7 10Section 7 . 227.137 (3) (intro.) and (a) of the statutes are amended to read:
AB42,8,2211 227.137 (3) (intro.) An economic impact analysis of a proposed rule shall
12contain information on the economic effect of the proposed rule on specific
13businesses, business sectors, public utility ratepayers, local governmental units, and
14the state's economy as a whole. When The agency or person preparing the analysis,
15the agency
shall solicit information and advice from businesses, associations
16representing businesses, local governmental units, and individuals that may be
17affected by the proposed rule. The agency or person shall prepare the economic
18impact analysis in coordination with local governmental units that may be affected
19by the proposed rule. The agency or person may also request information that is
20reasonably necessary for the preparation of an economic impact analysis from other
21businesses, associations, local governmental units, and individuals and from other
22agencies. The economic impact analysis shall include all of the following:
AB42,9,423 (a) An analysis and quantification of the policy problem that the proposed rule
24is intending to address, including comparisons with the approaches used by the
25federal government and by Illinois, Iowa, Michigan, and Minnesota to address that

1policy problem and, if. If the approach chosen by the agency to address that policy
2problem is different from those approaches, an economic impact analysis prepared
3by an agency shall include
a statement as to why the agency chose a different
4approach.
AB42,8 5Section 8. 227.137 (3) (b) of the statutes is renumbered 227.137 (3) (b) (intro.)
6and amended to read:
AB42,9,117 227.137 (3) (b) (intro.) An analysis and detailed quantification of the economic
8impact of the proposed rule, including the implementation and compliance costs that
9are reasonably expected to be incurred by or passed along to the businesses, local
10governmental units, and individuals that may be affected by the proposed rule.,
11specifically including all of the following:
AB42,9 12Section 9. 227.137 (3) (b) 1. and 2. of the statutes are created to read:
AB42,9,1913 227.137 (3) (b) 1. An estimate of the total implementation and compliance costs
14that are reasonably expected to be incurred by or passed along to businesses, local
15governmental units, and individuals as a result of the proposed rule, expressed as
16a single dollar figure. With respect to an independent economic impact analysis
17prepared under sub. (4m) or s. 227.19 (5) (b) 3., the person preparing the analysis
18shall provide a detailed explanation of any variance from the agency's estimate
19under this subdivision.
AB42,9,2420 2. A determination, for purposes of the requirement under s. 227.139, as to
21whether $10,000,000 or more in implementation and compliance costs are
22reasonably expected to be incurred by or passed along to businesses, local
23governmental units, and individuals over any 2-year period as a result of the
24proposed rule.
AB42,10 25Section 10 . 227.137 (4m) of the statutes is created to read:
AB42,10,5
1227.137 (4m) (a) After an agency submits an economic impact analysis for a
2proposed rule to the legislature under sub. (4), but before the agency submits the
3proposed rule for approval under s. 227.185, either cochairperson of the joint
4committee for review of administrative rules may request an independent economic
5impact analysis to be prepared for the proposed rule.
AB42,10,96 (b) 1. If a cochairperson of the joint committee for review of administrative rules
7requests an independent economic impact analysis under par. (a), the cochairperson
8shall notify the agency proposing the proposed rule and shall contract with a person
9that is not an agency to prepare the independent economic impact analysis.
AB42,10,1410 2. Upon completion of an independent economic impact analysis requested by
11a cochairperson of the joint committee for review of adminstrative rules, the person
12preparing the analysis may submit a request to the committee for reimbursement of
13its actual and necessary costs of completing the analysis. Costs of completing the
14independent economic impact analysis shall be paid as follows:
AB42,10,2215 a. If the estimate in the independent economic impact analysis of total
16implementation and compliance costs under sub. (3) (b) 1. varies from the agency's
17estimate by 15 percent or more or varies from the agency's determination that there
18will be no implementation or compliance costs, the committee shall assess the agency
19that is proposing the proposed rule for those costs. The committee shall credit all
20moneys received under this subd. 2. a. to the appropriation account under s. 20.765
21(1) (kt) and shall reimburse the person from the appropriation account under s.
2220.765 (1) (kt).
AB42,11,323 b. If the estimate in the independent economic impact analysis of total
24implementation and compliance costs under sub. (3) (b) 1. does not vary from the
25agency's estimate by 15 percent or more or is in accord with the agency's

1determination that there will be no implementation and compliance costs, the
2committee shall reimburse the person in equal parts from the appropriation
3accounts under s. 20.765 (1) (a) and (b).
AB42,11,54 (c) A person preparing an independent economic impact analysis under par. (b)
5shall do all of the following:
AB42,11,66 1. Include in the analysis the information that is required under sub. (3).
AB42,11,127 2. Upon completion of the analysis, submit the analysis to the agency, to the
8department of administration, to the governor, and to the chief clerks of each house
9of the legislature, who shall distribute the analysis to the presiding officers of their
10respective houses, to the chairpersons of the appropriate standing committees of
11their respective houses, as designated by those presiding officers, and to the
12cochairpersons of the joint committee for review of administrative rules.
AB42,11,1413 3. Complete the independent economic impact analysis within 60 days after
14contracting to prepare the analysis.
AB42,11,1715 (d) When an independent economic impact analysis is requested under par. (a),
16the agency may not submit the proposed rule for approval under s. 227.185 until the
17agency receives the completed independent economic impact analysis.
AB42,11 18Section 11 . 227.137 (6) and (7) of the statutes are repealed.
AB42,12 19Section 12 . 227.139 of the statutes is created to read:
AB42,12,4 20227.139 Passage of bill required for certain rules. (1) If an economic
21impact analysis prepared under s. 227.137 (2), a revised economic impact analysis
22prepared under s. 227.137 (4), or an independent economic impact analysis prepared
23under s. 227.137 (4m) or 227.19 (5) (b) 3. indicates that $10,000,000 or more in
24implementation and compliance costs are reasonably expected to be incurred by or
25passed along to businesses, local governmental units, and individuals over any

12-year period as a result of the proposed rule, the agency proposing the rule shall
2stop work on the proposed rule and may not continue promulgating the proposed rule
3notwithstanding any provision authorizing or requiring the agency to promulgate
4the proposed rule, except as authorized under sub. (2).
AB42,12,8 5(2) (a) Any member of the legislature may introduce a bill authorizing an
6agency to promulgate a rule that the agency is prohibited from promulgating under
7sub. (1). The agency may resume the rule-making process as provided in this
8subchapter upon enactment of a bill introduced under this paragraph.
AB42,12,219 (b) If an agency is prohibited from promulgating a rule under sub. (1), the
10agency may modify the proposed rule, if the modification is germane to the subject
11matter of the proposed rule, to address the implementation and compliance costs of
12the proposed rule. If the agency modifies a proposed rule under this paragraph, the
13agency shall prepare a revised economic impact analysis under s. 227.137 (4).
14Following the modification, the agency may continue with the rule-making process
15as provided in this subchapter if the revised economic impact analysis prepared by
16the agency indicates, and any independent economic impact analysis prepared under
17s. 227.137 (4m) or 227.19 (5) (b) 3. subsequent to the agency's modification also
18indicates, that $10,000,000 or more in implementation and compliance costs are not
19reasonably expected to be incurred by or passed along to businesses, local
20governmental units, and individuals over any 2-year period as a result of the
21proposed rule.
AB42,12,22 22(3) This section does not apply to rules promulgated under s. 227.24.
AB42,13 23Section 13. 227.14 (2) (a) 3m. of the statutes is created to read:
AB42,13,324 227.14 (2) (a) 3m. A summary of any public comments and feedback on the
25statement of scope of the proposed rule that the agency received at any preliminary

1public hearing and comment period held under s. 227.136 and a description of how
2and to what extent the agency took those comments and that feedback into account
3in drafting the proposed rule.
AB42,14 4Section 14. 227.14 (4m) of the statutes is amended to read:
AB42,13,235 227.14 (4m) Notice of submittal to legislative council staff. On the same
6day that an agency submits a proposed rule to the legislative council staff under s.
7227.15, the agency shall prepare a written notice of the agency's submittal to the
8legislative council staff. The notice shall include a statement of the date on which
9the proposed rule has been submitted to the legislative council staff for review, of the
10subject matter of the proposed rule, and of whether a public hearing on the proposed
11rule is required under s. 227.16, and shall identify the organizational unit within the
12agency that is primarily responsible for the promulgation of the rule. The notice
13shall also include a statement containing the identifying number of the statement
14of scope for the proposed rule assigned under s. 227.135 (3), the date of publication
15and issue number of the register in which the statement of scope is published, and
16the date of approval of the statement of scope by the individual or body with
17policy-making powers over the subject matter of the proposed rule under s. 227.135
18(2). The notice shall be approved by the individual or body with policy-making
19powers over the subject matter of the proposed rule. The agency shall send an
20electronic copy of the notice to the legislative reference bureau, in a format approved
21by the legislative reference bureau, for publication in the register. On the same day
22that the agency sends the notice to the legislative reference bureau, the agency shall
23send a copy of the notice to the secretary of administration.
AB42,15 24Section 15 . 227.15 (1) of the statutes is amended to read:
AB42,14,13
1227.15 (1) Submittal to legislative council staff. Prior to a public hearing
2on a proposed rule required under s. 227.16 or, if no such public hearing is required,
3prior to notice under s. 227.19, an agency shall submit the proposed rule to the
4legislative council staff for review. The proposed rule shall be in the form required
5under s. 227.14 (1), and shall include the material required under s. 227.14 (2), (3),
6and (4), the economic impact analysis required under s. 227.137 (2), and any revised
7economic impact analysis required under s. 227.137 (4). An agency may not hold a
8public hearing on a proposed rule or give notice under s. 227.19 until after it has
9received a written report of the legislative council staff review of the proposed rule
10or until after the initial review period of 20 working days under sub. (2) (intro.),
11whichever comes first. An agency may give notice of a public hearing prior to receipt
12of the legislative council staff report. This subsection does not apply to rules
13promulgated under s. 227.24.
AB42,16 14Section 16 . 227.15 (1m) (bm) of the statutes is amended to read:
AB42,14,1715 227.15 (1m) (bm) The economic impact analysis required under s. 227.137 (2)
16and, any revised economic impact analysis required under s. 227.137 (4), and any
17independent economic impact analysis prepared under s. 227.137 (4m)
.
AB42,17 18Section 17. 227.16 (1) of the statutes is amended to read:
AB42,14,2219 227.16 (1) Except as provided under sub. (2) In addition to any preliminary
20public hearing and comment period held under s. 227.136
, all rule making by an
21agency shall be preceded by notice and public hearing as provided in ss. 227.17 and
22227.18, except as provided in sub. (2).
AB42,18 23Section 18. 227.16 (6) of the statutes is renumbered 227.136 (7) and amended
24to read:
AB42,15,7
1227.136 (7) For the purpose of soliciting public comment, an agency may hold
2a hearing on the general subject matter of possible or anticipated rules before
3preparing a statement of scope for a proposed rule in draft form. A hearing held
4under this subsection does not satisfy the requirement of sub. (1) with respect to the
5promulgation of a specific proposed rule
relieve the agency from its obligation to
6comply with a directive under sub. (1) or the requirement to hold a hearing under s.
7227.16
.
AB42,19 8Section 19. 227.17 (1) (intro.) of the statutes is amended to read:
AB42,15,109 227.17 (1) (intro.) If a hearing is required under s. 227.16, the agency shall do
10all of the following
:
AB42,20 11Section 20 . 227.17 (3) (eg) of the statutes is created to read:
AB42,15,1312 227.17 (3) (eg) Any independent economic impact analysis prepared under s.
13227.137 (4m).
AB42,21 14Section 21. 227.17 (3) (em) of the statutes is repealed.
AB42,22 15Section 22 . 227.185 of the statutes is amended to read:
AB42,15,23 16227.185 Approval by governor. After a proposed rule is in final draft form,
17the agency shall submit the proposed rule to the governor for approval. The governor,
18in his or her discretion, may approve or reject the proposed rule. If the governor
19approves a proposed rule, the governor shall provide the agency with a written notice
20of that approval. No proposed rule may be submitted to the legislature for review
21under s. 227.19 (2) unless the governor has approved the proposed rule in writing.
22The agency shall notify the joint committee for review of administrative rules
23whenever it submits a proposed rule for approval under this section.
AB42,23 24Section 23 . 227.19 (3) (intro.) of the statutes is amended to read:
AB42,16,11
1227.19 (3) Form of report. (intro.) The report required under sub. (2) shall be
2in writing and shall include the proposed rule in the form specified in s. 227.14 (1);
3the material specified in s. 227.14 (2), (3), and (4); including any statement,
4suggested changes, or other material submitted to the agency by the small business
5regulatory review board; a copy of any economic impact analysis prepared by the
6agency under s. 227.137 (2); a copy of any revised economic impact analysis prepared
7by the agency under s. 227.137 (4); a copy of any report prepared by the department
8of administration under s. 227.137 (6);
independent economic impact analysis
9prepared under s. 227.137 (4m);
a copy of any energy impact report received from the
10public service commission under s. 227.117 (2); and a copy of any recommendations
11of the legislative council staff. The report shall also include all of the following:
AB42,24 12Section 24. 227.19 (3) (c) of the statutes is amended to read:
AB42,16,1413 227.19 (3) (c) A list of the persons who appeared or registered for or against the
14proposed rule at a public hearing held under s. 227.136 or 227.16.
AB42,25 15Section 25 . 227.19 (4) (b) 1. (intro.) of the statutes is amended to read:
AB42,16,2216 227.19 (4) (b) 1. (intro.) Except as otherwise provided under subds. 1m. and 5.
17in this paragraph, the committee review period for each committee extends for 30
18days after referral of the proposed rule to the committee under sub. (2). If the
19chairperson or the cochairpersons of a committee take either of the following actions
20within the 30-day period, the committee review period for that committee is
21continued for 30 days from the date on which the first 30-day review period would
22have expired:
AB42,26 23Section 26 . 227.19 (5) (b) 1. (intro.) of the statutes is amended to read:
AB42,17,1124 227.19 (5) (b) 1. (intro.) Except as otherwise provided in subd. 1m. this
25paragraph
, the review period for the joint committee for review of administrative

1rules extends for 30 days after the last referral of a proposed rule and any objection
2to that committee, and during that review period that committee may take any action
3on the proposed rule in whole or in part permitted under this subsection. The joint
4committee for review of administrative rules shall meet and take action in executive
5session during that period with respect to any proposed rule or any part of a proposed
6rule to which a committee has objected and may meet and take action in executive
7session during that period with respect to any proposed rule or any part of a proposed
8rule to which no committee has objected, except that if the cochairpersons take either
9of the following actions within the 30-day period, the joint committee review period
10is continued for 30 days from the date on which the first 30-day review period would
11have expired:
AB42,27 12Section 27 . 227.19 (5) (b) 3. of the statutes is created to read:
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