AB64,759,86 2. Provides guidance or advice with respect to how the agency is likely to apply
7a statute or rule enforced or administered by the agency, if that guidance or advice
8is likely to apply to a class of persons similarly affected.
AB64,759,99 (b) “Guidance document" does not include any of the following:
AB64,759,1110 1. A rule or any document or communication that imposes any binding or
11enforceable legal requirement.
AB64,759,1512 2. A standard adopted, or a statement of policy or interpretation made, whether
13preliminary or final, in the decision of a contested case, in a private letter ruling
14under s. 73.035, or in an agency decision upon or disposition of a particular matter
15as applied to a specific set of facts.
AB64,759,1916 3. Any document or activity described in sub. (13) (a) to (zz), except that
17“guidance document" includes a pamphlet or other explanatory material described
18under sub. (13) (r) that otherwise satisfies the definition of “guidance document"
19under par. (a).
AB64,759,2120 4. Any document that any statute specifically provides is not required to be
21promulgated as a rule.
AB64,759,2222 5. A declaratory ruling issued under s. 227.41.
AB64,759,2423 6. A formal or informal opinion of the attorney general, including an opinion
24issued under s. 165.015 (1).
AB64,760,2
17. A formal or informal advisory opinion issued by the elections commission
2under s. 5.05 (6a) or by the ethics commission under s. 19.46 (2).
AB64,760,43 8. Any document or communication for which a procedure for public input,
4other than that provided under s. 227.112 (1), is provided by law.
AB64,760,65 9. Any document or communication that is not subject to the right of inspection
6and copying under s. 19.35 (1).
AB64,1708 7Section 1708 . 227.01 (13) (intro.) of the statutes is amended to read:
AB64,760,158 227.01 (13) (intro.) “Rule" means a regulation, standard, statement of policy,
9or general order of general application which that has the effect force of law and
10which that is issued by an agency to implement, interpret, or make specific
11legislation enforced or administered by the agency or to govern the organization or
12procedure of the agency. “Rule" includes a modification of a rule under s. 227.265.
13“Rule" does not include, and s. 227.10 does not apply to, any action or inaction of an
14agency, whether it would otherwise meet the definition under this subsection, which
15that:
AB64,1709 16Section 1709. 227.01 (13) (Lr) of the statutes is amended to read:
AB64,760,1817 227.01 (13) (Lr) Determines what constitutes high-demand fields for purposes
18of s. 38.28 (2) (be) 1. b. (2m) (b) 2.
AB64,1710 19Section 1710 . Subchapter II (title) of chapter 227 [precedes 227.10] of the
20statutes is amended to read:
AB64,760,2121 Chapter 227
AB64,760,2222 Subchapter II
AB64,760,2423 ADMINISTRATIVE RULES and
24 GUIDANCE DOCUMENTS
AB64,1711 25Section 1711 . 227.111 of the statutes is created to read:
AB64,761,5
1227.111 Rule-making authority of certain agencies. (1) In this section,
2“restricted agency” means an affiliated credentialing board, as defined in s. 15.01
3(1g), a board, as defined in s. 15.01 (1r), a commission, as defined in s. 15.01 (2), or
4an examining board, as defined in s. 15.01 (7), that has not taken any action under
5this subchapter with respect to the promulgation of a rule in 10 years or more.
AB64,761,9 6(2) Notwithstanding ss. 227.10 and 227.11 and any other provision authorizing
7or requiring a restricted agency to promulgate rules, a restricted agency may not
8take any action with respect to the promulgation of a rule unless a subsequent law
9specifically authorizes such action.
AB64,1712 10Section 1712 . 227.112 of the statutes is created to read:
AB64,761,19 11227.112 Guidance documents. (1) (a) Except as provided in par. (c), no less
12than 21 days before adopting a guidance document, an agency shall post the proposed
13guidance document on the agency's Internet site and, on the same date, submit a
14notice of the public comment period on the proposed guidance document under par.
15(b), including a copy of the proposed guidance document and the Web address of the
16agency's Internet site at which comments may be submitted, to the legislative
17reference bureau, in a format approved by the legislative reference bureau, for
18publication in the register. The notice need not be published in the register on the
19same day the agency posts the proposed guidance document on its Internet site.
AB64,761,2520 (b) The agency shall provide for a period for public comment on a proposed
21guidance document posted under par. (a), during which any person may submit
22written comments to the agency with respect to the proposed guidance document.
23Except as provided in par. (c), the period for public comment shall end no sooner than
24the 21st day after the date on which the proposed guidance document is posted on
25the agency's Internet site.
AB64,762,3
1(c) An agency may post a proposed guidance document less than 21 days before
2adopting the proposed guidance document and with a public comment period shorter
3than 21 days with the approval of the governor.
AB64,762,74 (d) An agency shall retain all written comments submitted during the public
5comment period under par. (b) and shall consider those comments in determining
6whether to adopt the guidance document as originally proposed, modify the proposed
7guidance document, or take any other action.
AB64,762,98 (e) This subsection does not apply to guidance documents adopted before the
9effective date of this paragraph .... [LRB inserts date].
AB64,762,16 10(2) An agency shall post each guidance document that the agency has adopted
11on the agency's Internet site and shall permit continuing public comment on the
12guidance document. The agency shall ensure that each guidance document that the
13agency has adopted remains on the agency's Internet site as provided in this
14subsection until the guidance document is no longer in effect, is no longer valid, or
15is superseded or until the agency otherwise rescinds its adoption of the guidance
16document.
AB64,763,2 17(3) A guidance document does not have the force of law and does not provide
18the authority for implementing or enforcing a standard, requirement, or threshold,
19including as a term or condition of any license. A guidance document that imposes
20a regulatory obligation or consequence is invalid, and the regulatory obligation or
21consequence may not be administered or enforced unless the agency promulgates it
22as a rule. An agency that proposes to rely on a guidance document to the detriment
23of a person in any administrative proceeding shall afford the person an adequate
24opportunity to contest the legality or wisdom of a position taken in the guidance

1document. An agency may not use a guidance document to foreclose consideration
2of any issue raised in the guidance document.
AB64,763,8 3(4) If an agency proposes to act in an administrative proceeding at variance
4with a position expressed in a guidance document, it shall provide a reasonable
5explanation for the variance. If an affected person in an administrative proceeding
6may have relied reasonably on the agency's position, the explanation must include
7a reasonable justification for the agency's conclusion that the need for the variance
8outweighs the affected person's reliance interest.
AB64,763,11 9(5) Persons that qualify under s. 227.12 to petition an agency to promulgate
10a rule may, as provided in s. 227.12, petition an agency to promulgate a rule in place
11of a guidance document.
AB64,1713 12Section 1713. 227.12 (4) of the statutes is amended to read:
AB64,764,813 227.12 (4) If a petition to the department of revenue establishes that the
14department has established a standard by which it is construing a state tax statute,
15but has not promulgated a rule to adopt the standard or published the standard in
16a manner that is available to the public, the department shall, as provided under s.
17227.135, submit a statement of the scope of the proposed rule to the governor no later
18than 90 days after receiving the petition. No later than 270 days after the statement
19is approved by the governor, the department shall submit the proposed rule in final
20draft form to the governor for the governor's approval, as provided under s. 227.185
21(1). At the department's request, the governor may, at any time prior to the
22expiration of any deadline specified in this subsection, extend the time for submitting
23the statement or proposed rule in draft form for any period not to exceed 60 days.
24The governor may grant more than one extension under this subsection, but the total
25period for all such extensions may not exceed 120 days. The rule need not adhere to

1the standard established by the department, but shall address the same
2circumstances as the standard addresses. If the department fails to comply with this
3subsection, any of the petitioners may commence an action in circuit court to compel
4the department's compliance. If an action is commenced under this subsection, the
5court may compel the department to provide information to the court related to the
6degree to which the department is enforcing the standard, except that the
7information provided by the department shall not disclose the identity of any person
8who is not a party to the action.
AB64,1714 9Section 1714 . 227.132 of the statutes is created to read:
AB64,764,11 10227.132 Duties of department of administration. The department of
11administration shall do all of the following:
AB64,764,14 12(1) Provide training to agencies on appropriate data collection and methods of
13analysis for purposes of preparing economic impact analyses of proposed rules under
14s. 227.137 (3).
AB64,764,19 15(2) Attend hearings of the joint committee for review of administrative rules
16and present testimony on proposed rules that the department determines will have
17an economic impact on specific businesses, business sectors, public utility
18ratepayers, local governmental units, regulated individuals and entities, or the
19state's economy as a whole.
AB64,764,21 20(3) Review and approve economic impact analyses as provided under s. 227.137
21(3m).
AB64,764,23 22(4) Request independent economic impact analyses under s. 227.137 (4m)
23when appropriate.
AB64,1715 24Section 1715 . 227.135 (1) (intro.) of the statutes is amended to read:
AB64,765,4
1227.135 (1) (intro.) An agency shall prepare a statement of the scope of any rule
2that it plans to promulgate, which shall be approved by the individual or body with
3policy-making powers over the subject matter of the proposed rule
. The statement
4shall include all of the following:
AB64,1716 5Section 1716 . 227.135 (2) of the statutes is amended to read:
AB64,765,206 227.135 (2) An agency that has prepared a statement of the scope of the
7proposed rule shall present the statement to the governor and to the individual or
8body with policy-making powers over the subject matter of the proposed rule for
9approval
who, in his or her discretion, may approve or reject the statement of scope.
10The agency may not send the statement to the legislative reference bureau for
11publication under sub. (3) until the governor issues a written notice of approval of
12the statement. The individual or body with policy-making powers may not approve
13the statement until at least 10 days after publication of the statement under sub. (3).
14No state employee or official may perform any activity in connection with the
15drafting of a proposed rule, except for an activity necessary to prepare the statement
16of the scope of the proposed rule, until the governor and the individual or body with
17policy-making powers over the subject matter of the proposed rule approve
approves
18the statement. This subsection does not prohibit an agency from performing an
19activity necessary to prepare a petition and proposed rule for submission under s.
20227.26 (4)
.
AB64,1717 21Section 1717. 227.135 (3) of the statutes is amended to read:
AB64,766,922 227.135 (3) If the governor approves a statement of the scope of a proposed rule
23under sub. (2), the agency shall send an electronic copy of the statement to the
24legislative reference bureau, in a format approved by the legislative reference
25bureau, for publication in the register. On the same day that the agency sends the

1statement to the legislative reference bureau, the agency shall send a copy of the
2statement to the secretary of administration and to the chief clerks of each house of
3the legislature, who shall distribute the statement to the cochairpersons of the joint
4committee for review of administrative rules
. The agency shall include with any
5statement of scope sent to the legislative reference bureau the date of the governor's
6approval of the statement of scope. The legislative reference bureau shall assign a
7discrete identifying number to each statement of scope and shall include that
8number and the date of the governor's approval in the publication of the statement
9of scope in the register.
AB64,1718 10Section 1718. 227.136 of the statutes is created to read:
AB64,766,16 11227.136 Preliminary public hearing and comment period. (1) Within
1210 days after publication of a statement of the scope of a proposed rule under s.
13227.135 (3), either cochairperson of the joint committee for the review of
14administrative rules may submit a written directive to the agency that prepared the
15statement for the agency to hold a preliminary public hearing and comment period
16on the statement of scope as provided in this section.
AB64,767,3 17(2) If the agency is directed to hold a preliminary public hearing and comment
18period on a statement of scope as provided in sub. (1) or if the agency otherwise opts
19to do so on its own initiative, the agency shall take no further action with respect to
20any permanent rule based upon that statement of scope until otherwise permitted
21under sub. (6) and shall submit to the legislative reference bureau, in a format
22approved by the legislative reference bureau, a notice of a preliminary public hearing
23and comment period to allow for public comment and feedback on the statement of
24scope. The agency may also take any other action it considers necessary to provide
25notice of the preliminary public hearing and comment period to other interested

1persons. The notice shall be approved by the individual or body with policy-making
2powers over the subject matter of the proposed rule and shall include all of the
3following:
AB64,767,44 (a) A statement of the date, time, and place of the preliminary public hearing.
AB64,767,65 (b) The place where comments on the statement of scope should be submitted
6and the deadline for submitting those comments.
AB64,767,9 7(3) The agency shall hold the preliminary public hearing and comment period
8in accordance with the notice required under sub. (2), but may not hold the hearing
9sooner than the 3rd day after publication of the notice in the register.
AB64,767,11 10(4) The agency shall conduct a hearing under this section in accordance with
11s. 227.18.
AB64,767,15 12(5) The agency shall report all public comments and feedback on the statement
13of scope of the proposed rule that the agency receives at the preliminary public
14hearing and comment period to the individual or body with policy-making powers
15over the subject matter of the proposed rule.
AB64,767,17 16(6) The agency may resume work on a permanent rule upon the conclusion of
17a preliminary hearing and comment period held under this section.
AB64,767,20 18(7) Failure of any person to receive notice of a preliminary public hearing as
19provided in this section is not grounds for invalidating any resulting rule if notice of
20the hearing was published in the register in accordance with s. 35.93 (2) (b) 3. bm.
AB64,1719 21Section 1719 . 227.137 (3) (intro.) and (a) of the statutes are amended to read:
AB64,768,922 227.137 (3) (intro.) An economic impact analysis of a proposed rule shall
23contain information on the economic effect of the proposed rule on specific
24businesses, business sectors, public utility ratepayers, local governmental units,
25regulated individuals and entities, and the state's economy as a whole. When The

1agency or vendor
preparing the analysis, the agency shall solicit information and
2advice from businesses, associations representing businesses, local governmental
3units, and individuals that may be affected by the proposed rule. The agency or
4vendor
shall prepare the economic impact analysis in coordination with local
5governmental units that may be affected by the proposed rule. The agency or vendor
6may also request information that is reasonably necessary for the preparation of an
7economic impact analysis from other businesses, associations, local governmental
8units, and individuals and from other agencies. The economic impact analysis shall
9include all of the following:
AB64,768,1610 (a) An analysis and quantification of the policy problem that the proposed rule
11is intending to address, including comparisons with the approaches used by the
12federal government and by Illinois, Iowa, Michigan, and Minnesota to address that
13policy problem and, if. If the approach chosen by the agency to address that policy
14problem is different from those approaches, an economic impact analysis prepared
15by an agency shall include
a statement as to why the agency chose a different
16approach.
AB64,1720 17Section 1720. 227.137 (3) (b) of the statutes is renumbered 227.137 (3) (b)
18(intro.) and amended to read:
AB64,768,2319 227.137 (3) (b) (intro.) An analysis and detailed quantification of the economic
20impact of the proposed rule, including the implementation and compliance costs that
21are reasonably expected to be incurred by or passed along to the businesses, local
22governmental units, and individuals that may be affected by the proposed rule.,
23specifically including all of the following:
AB64,1721 24Section 1721. 227.137 (3) (b) 1. and 2. of the statutes are created to read:
AB64,769,7
1227.137 (3) (b) 1. An estimate of the total implementation and compliance costs
2that are reasonably expected to be incurred by or passed along to businesses, local
3governmental units, and individuals as a result of the proposed rule, expressed as
4a single dollar figure. With respect to an independent economic impact analysis
5prepared under sub. (4m) or s. 227.19 (5) (b) 3., the vendor preparing the analysis
6shall provide a detailed explanation of any variance from the agency's estimate
7under this subdivision.
AB64,769,128 2. A determination, for purposes of the requirement under s. 227.139, as to
9whether $10,000,000 or more in implementation and compliance costs are
10reasonably expected to be incurred by or passed along to businesses, local
11governmental units, and individuals over any 2-year period as a result of the
12proposed rule.
AB64,1722 13Section 1722 . 227.137 (3c) of the statutes is created to read:
AB64,769,1814 227.137 (3c) An agency may not begin soliciting information and advice under
15sub. (3) until the 10-day period under s. 227.136 (1) has concluded or, if the agency
16holds a preliminary hearing and comment period as provided in s. 227.136 (2), until
17the agency is permitted to resume work on the rule under s. 227.136 (6), whichever
18occurs later.
AB64,1723 19Section 1723 . 227.137 (3m) of the statutes is created to read:
AB64,770,1220 227.137 (3m) Prior to submitting an economic impact analysis prepared under
21sub. (2) to the legislative council staff under s. 227.15 (1), an agency shall submit the
22economic impact analysis to the department of administration. The department of
23administration shall review the economic impact analysis and determine whether
24the data used by the agency in preparing the analysis are appropriate for
25determining the economic impact of the proposed rule and whether the analysis

1accurately gauges the economic impact of the proposed rule. If the department of
2administration determines that the agency's analysis does not accurately gauge the
3economic impact of the proposed rule, it shall recommend any modifications to the
4economic impact analysis that it considers necessary and direct the agency to revise
5the analysis. An agency may not submit an economic impact analysis to the
6legislative council staff under s. 227.15 (1) without the approval of the department
7of administration. The department of administration may approve an economic
8impact analysis only upon determining that the economic impact analysis accurately
9gauges the economic impact of the proposed rule. The department of administration
10shall similarly review and approve any revised economic impact analysis prepared
11under sub. (4). The department of administration shall, upon approving an economic
12impact analysis, submit a statement indicating that approval to the agency.
AB64,1724 13Section 1724 . 227.137 (4m) of the statutes is created to read:
AB64,770,1914 227.137 (4m) (a) After an agency submits an economic impact analysis for a
15proposed rule to the legislature under sub. (4), but before the agency submits the
16proposed rule for approval under s. 227.185 (1), the department of administration or
17either cochairperson of the joint committee for review of administrative rules may
18request an independent economic impact analysis to be prepared for the proposed
19rule.
AB64,771,220 (b) 1. If the department of administration requests an independent economic
21impact analysis under par. (a), the department shall notify the agency proposing the
22proposed rule and shall contract with a vendor that is not an agency to prepare the
23independent economic impact analysis. If a cochairperson of the joint committee for
24review of administrative rules requests an independent economic impact analysis
25under par. (a), the cochairperson shall notify the agency proposing the proposed rule

1and shall direct the department of administration to contract with a vendor that is
2not an agency to prepare the independent economic impact analysis.
AB64,771,113 2. Upon completion of an independent economic impact analysis requested by
4the department of administration, the vendor preparing the analysis may submit a
5request to the department of administration for reimbursement of its actual and
6necessary costs of completing the analysis, and the department of administration
7shall assess the agency that is proposing the proposed rule for those costs. The
8department of administration shall credit all moneys received under this subdivision
9to the appropriation account under s. 20.505 (1) (kt) and shall reimburse a person
10who submits a request for reimbursement under this subdivision from the
11appropriation account under s. 20.505 (1) (kt).
AB64,771,1612 3. Upon completion of an independent economic impact analysis requested by
13a cochairperson of the joint committee for review of adminstrative rules, the vendor
14preparing the analysis may submit a request to the committee for reimbursement of
15its actual and necessary costs of completing the analysis. Costs of completing the
16independent economic impact analysis shall be paid as follows:
AB64,771,2417 a. If the estimate in the independent economic impact analysis of total
18implementation and compliance costs under sub. (3) (b) 1. varies from the agency's
19estimate by 15 percent or more or varies from the agency's determination that there
20will be no implementation or compliance costs, the committee shall assess the agency
21that is proposing the proposed rule for those costs. The committee shall credit all
22moneys received under this subd. 3. a. to the appropriation account under s. 20.765
23(1) (kt) and shall reimburse the vendor from the appropriation account under s.
2420.765 (1) (kt).
AB64,772,6
1b. If the estimate in the independent economic impact analysis of total
2implementation and compliance costs under sub. (3) (b) 1. does not vary from the
3agency's estimate by 15 percent or more or is in accord with the agency's
4determination that there will be no implementation and compliance costs, the
5committee shall reimburse the vendor in equal parts from the appropriation
6accounts under s. 20.765 (1) (a) and (b).
AB64,772,87 (c) A vendor preparing an independent economic impact analysis under par. (b)
8shall do all of the following:
AB64,772,99 1. Include in the analysis the information that is required under sub. (3).
AB64,772,1510 2. Upon completion of the analysis, submit the analysis to the agency, to the
11department of administration, to the governor, and to the chief clerks of each house
12of the legislature, who shall distribute the analysis to the presiding officers of their
13respective houses, to the chairpersons of the appropriate standing committees of
14their respective houses, as designated by those presiding officers, and to the
15cochairpersons of the joint committee for review of administrative rules.
AB64,772,1716 3. Complete the independent economic impact analysis within 60 days after
17contracting to prepare the analysis.
AB64,772,2018 (d) When an independent economic impact analysis is requested under par. (a),
19the agency may not submit the proposed rule for approval under s. 227.185 (1) until
20the agency receives the completed independent economic impact analysis.
AB64,1725 21Section 1725 . 227.137 (6) and (7) of the statutes are repealed.
AB64,1726 22Section 1726 . 227.139 of the statutes is created to read:
AB64,773,7 23227.139 Passage of bill required for certain rules. (1) If an economic
24impact analysis prepared under s. 227.137 (2), a revised economic impact analysis
25prepared under s. 227.137 (4), or an independent economic impact analysis prepared

1under s. 227.137 (4m) or 227.19 (5) (b) 3. indicates that $10,000,000 or more in
2implementation and compliance costs are reasonably expected to be incurred by or
3passed along to businesses, local governmental units, and individuals over any
42-year period as a result of the proposed rule, the agency proposing the rule shall
5stop work on the proposed rule and may not continue promulgating the proposed rule
6notwithstanding any provision authorizing or requiring the agency to promulgate
7the proposed rule, except as authorized under sub. (2).
AB64,773,11 8(2) (a) Any member of the legislature may introduce a bill authorizing an
9agency to promulgate a rule that the agency is prohibited from promulgating under
10sub. (1). The agency may resume the rule-making process as provided in this
11subchapter upon enactment of a bill introduced under this paragraph.
AB64,773,2412 (b) If an agency is prohibited from promulgating a rule under sub. (1), the
13agency may modify the proposed rule, if the modification is germane to the subject
14matter of the proposed rule, to address the implementation and compliance costs of
15the proposed rule. If the agency modifies a proposed rule under this paragraph, the
16agency shall prepare a revised economic impact analysis under s. 227.137 (4).
17Following the modification, the agency may continue with the rule-making process
18as provided in this subchapter if the revised economic impact analysis prepared by
19the agency indicates, and any independent economic impact analysis prepared under
20s. 227.137 (4m) or 227.19 (5) (b) 3. subsequent to the agency's modification also
21indicates, that $10,000,000 or more in implementation and compliance costs are not
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.
AB64,773,25 25(3) This section does not apply to rules promulgated under s. 227.24.
AB64,1727
1Section 1727. 227.14 (2) (a) 3m. of the statutes is created to read:
AB64,774,62 227.14 (2) (a) 3m. A summary of any public comments and feedback on the
3statement of scope of the proposed rule that the agency received at any preliminary
4public hearing and comment period held under s. 227.136 and a description of how
5and to what extent the agency took those comments and that feedback into account
6in drafting the proposed rule.
AB64,1728 7Section 1728 . 227.14 (4m) of the statutes is amended to read:
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