AB655, s. 170 13Section 170. 196.491 (2) (a) 3m. of the statutes is amended to read:
AB655,67,1514 196.491 (2) (a) 3m. Identify and describe high-voltage transmission lines on
15which an electric utility plans to commence construction within 3 7 years.
AB655, s. 171 16Section 171. 196.491 (2) (g) of the statutes is amended to read:
AB655,68,717 196.491 (2) (g) No sooner than 30 and no later than 90 days after copies of the
18draft are issued under par. (b), the commission shall hold a hearing on the draft
19which may not be a hearing under s. 227.42 or 227.44. The hearing shall be held in
20an administrative district, established by executive order 22, issued
21August 24, 1970, which the commission determines will be significantly affected by
22facilities on which an electric utility plans to commence construction within 3 7
23years. The commission may thereafter adjourn the hearing to other locations or may
24conduct the hearing by interactive video conference or other electronic method.
25Notice of such hearing shall be given by class 1 notice, under ch. 985, published in

1the official state newspaper and such other regional papers of general circulation as
2may be designated by the commission. At such hearing the commission shall briefly
3describe the strategic energy assessment and give all interested persons an
4opportunity, subject to reasonable limitations on the presentation of repetitious
5material, to express their views on any aspect of the strategic energy assessment.
6A record of the hearing shall be made and considered by the commission as comments
7on the strategic energy assessment under par. (e).
AB655, s. 172 8Section 172. 221.0901 (3) (a) 1. of the statutes is amended to read:
AB655,68,109 221.0901 (3) (a) 1. Merge or consolidate with an in-state bank holding company
10or in-state bank.
AB655, s. 173 11Section 173. 221.0901 (8) (a) and (b) of the statutes are amended to read:
AB655,68,1712 221.0901 (8) (a) Except as provided in pars. (b) and (c), the division may not
13approve an application by an out-of-state bank holding company under sub. (3) (a),
14other than an application by an in-state bank holding company or in-state bank,

15unless the in-state bank to be acquired, or all in-state bank subsidiaries of the
16in-state bank holding company to be acquired, have as of the proposed date of
17acquisition been in existence and in continuous operation for at least 5 years.
AB655,68,2518 (b) The Except as otherwise provided in this paragraph, the division may
19approve an application under sub. (3) (a) for an acquisition of an in-state bank
20holding company that owns one or more in-state banks that have been in existence
21for less than 5 years, if the out-of-state bank holding company applicant divests
22itself of those in-state banks within 2 years after the date of acquisition of the
23in-state bank holding company by the out-of-state bank holding company
24applicant. This paragraph does not apply if the applicant is an in-state bank holding
25company or in-state bank
.
AB655, s. 174
1Section 174. 227.135 (1) (e) and (f) of the statutes are created to read:
AB655,69,42 227.135 (1) (e) A summary of any existing or anticipated federal program that
3is intended to address the activities to be regulated by the rule and an analysis of the
4need for the rule if a federal program exists.
AB655,69,65 (f) An assessment of whether the rule is inconsistent, duplicative, or more
6stringent than the regulations under any federal program summarized in par. (e).
AB655, s. 175 7Section 175. 227.137 of the statutes is created to read:
AB655,69,16 8227.137 Economic impact reports of guidelines, policies, and rules. (1)
9After an agency publishes a statement of the scope of a proposed rule under s.
10227.135, and before the agency submits the proposed rule to the legislative council
11for review under s. 227.15, a municipality, an association that represents a farm,
12labor, business, or professional group, or 5 or more persons having an interest in the
13proposed rule may petition the agency to prepare an economic impact report of the
14proposed rule. If the agency determines that the petitioner may be economically
15affected by the proposed rule, the agency shall prepare an economic impact report
16before submitting the proposed rule to the legislative council under s. 227.15.
AB655,69,23 17(2) A municipality, an association that represents a farm, labor, business, or
18professional group, or 5 or more persons affected by an existing or proposed agency
19guideline or policy, including agency comments and policies in response to federal
20regulations, may petition the agency to prepare an economic impact report for that
21existing or proposed agency guideline or policy. If the agency determines that the
22petitioner may be economically affected by the proposed or existing guideline or
23policy, the agency shall prepare an economic impact report.
AB655,70,8 24(3) An economic impact report shall contain information on the effect of the
25proposed rule or existing or proposed guideline or policy on specific businesses,

1business sectors, and the state's economy. When preparing the report, the agency
2shall solicit information and advice from the department of commerce and
3governmental units, associations, businesses, and individuals that may be affected
4by the proposed rule or existing or proposed guideline or policy. The agency may
5request information that is reasonably necessary for the preparation of an economic
6impact report from other state agencies, governmental units, associations,
7businesses, and individuals, but no one is required to respond to that request. The
8economic impact report shall include all of the following:
AB655,70,109 (a) An analysis and quantification of the problem, including any risks to public
10health or the environment, that the guideline, policy, or rule is intending to address.
AB655,70,1411 (b) An analysis and quantification of the economic impact of the guideline,
12policy, or rule, including direct, indirect, and consequential costs reasonably
13expected to be incurred by the state, governmental units, associations, businesses,
14and affected individuals.
AB655,70,1715 (c) An analysis of the guideline's, policy's, or rule's impact on the state's
16economy, including how the guideline, policy, or rule affects the state's economic
17development policies.
AB655,70,2018 (d) An analysis of benefits of the guideline, policy, or rule, including how the
19guideline, policy, or rule reduces the risks and addresses the problems that the
20guideline, policy, or rule is intended to address.
AB655,70,2221 (e) An analysis that compares the benefits to the costs of the guideline, policy,
22or rule.
AB655,71,223 (f) An analysis of existing or anticipated federal programs that are intended to
24address the risks and problems the agency is intending to address with the guideline,
25policy, or rule, including a determination of whether the guideline, policy, or rule and

1related administrative requirements are consistent with and not duplicative of those
2existing or anticipated federal programs.
AB655,71,63 (g) An analysis of regulatory alternatives to the guideline, policy, or rule,
4including the alternative of no regulation, and a determination of whether the
5guideline, policy, or rule addresses the identified risks and problems the agency is
6intending to address in the most cost-efficient manner.
AB655,71,97 (h) A comparison of the costs of the guideline, policy, or rule borne by Wisconsin
8businesses to costs borne by similar businesses located in Indiana, Missouri, and
9adjacent states.
AB655,71,11 10(4) The agency shall submit the economic impact report to the legislative
11council staff, to the department of administration, and to the petitioner.
AB655,71,13 12(5) This section does not apply to emergency rules promulgated under s.
13227.24.
AB655, s. 176 14Section 176. 227.138 of the statutes is created to read:
AB655,71,16 15227.138 Department of administration review of proposed rules. (1)
16In this section:
AB655,71,1717 (a) "Department" means the department of administration.
AB655,71,1818 (b) "Economic impact report" means a report prepared under s. 227.137.
AB655,71,2019 (c) "Guideline or policy" includes any agency comments or policies in response
20to federal regulations.
AB655,72,6 21(2) If the department receives an economic impact report under s. 227.137 (4)
22regarding a proposed rule, the department shall review the proposed rule and issue
23a report. A municipality, an association that represents a farm, labor, business, or
24professional group, or 5 or more persons having an interest in a proposed rule may
25petition the department to review the proposed rule. If the department determines

1that the petitioner may be economically affected by the proposed rule, the
2department shall review the proposed rule and issue a report. The department shall
3notify the agency that a report will be prepared and that the agency shall not submit
4a proposed rule to the legislative council for review under s. 227.15 (1) until the
5agency receives a copy of the department's report. The report shall include all of the
6following findings:
AB655,72,97 (a) If an economic impact report was prepared as required under s. 227.137 (1),
8that the report and the analysis required under s. 227.137 (3) are supported by
9related documentation contained in the economic impact report.
AB655,72,1110 (b) That the agency has clear statutory authority to promulgate the proposed
11rule.
AB655,72,1312 (c) That the proposed rule, including any administrative requirements, is
13consistent with and not duplicative of other state rules or federal regulations.
AB655,72,1514 (d) That the proposed rule is consistent with the governor's positions and
15priorities, including those related to economic development.
AB655,72,1816 (e) That the agency used data, studies, and other sources of information in
17developing the proposed rule that is complete, accurate, and derived from accepted
18scientific methodologies.
AB655,73,3 19(3) Before issuing a report under sub. (2), the department may return a
20proposed rule to the agency for further consideration and revision with a written
21explanation of why the proposed rule is returned. If the agency head disagrees with
22the department's reasons for returning the proposed rule, the agency head shall so
23notify the department in writing. The department secretary shall approve the
24proposed rule when the agency has adequately addressed the issues raised during
25the department's review of the rule. The department shall submit a statement to the

1governor indicating the department's approval of the proposed rule, the
2correspondence between the agency and the department related to the proposed rule,
3and a copy of its report regarding the proposed rule.
AB655,73,13 4(4) If the department receives an economic impact report under s. 227.137 (4)
5regarding a proposed or existing guideline or policy, the department shall review the
6guideline or policy and issue a report. A municipality, an association that represents
7a farm, labor, business, or professional group, or 5 or more persons having an interest
8in a proposed or existing guideline or policy may petition the department to review
9the guideline or policy. If the department determines that the petitioner may be
10economically affected by the guideline or policy, the department shall review the
11guideline or policy and issue a report. The department shall notify the agency that
12a report will be prepared. The report shall include findings consistent with those
13under sub. (2) and include the following findings:
AB655,73,1614 (a) If an economic impact report was prepared as required under s. 227.137 (4),
15that the report and the analysis required under s. 227.137 (3) are supported by
16related documentation contained in the economic impact report.
AB655,73,1817 (b) That the guideline or policy is consistent with and does not exceed the
18agency's statutory authority.
AB655,73,2019 (c) That the guideline or policy is consistent with the governor's positions and
20priorities, including those related to economic development.
AB655,73,2221 (d) That the guideline or policy is of the type that is not required to be
22promulgated as a rule.
AB655,74,2 23(5) Before issuing a report under sub. (4), the department may prohibit an
24agency from implementing a proposed guideline or policy until the department

1secretary determines that the proposed guideline or policy meets the criteria under
2sub. (4) (a) to (d).
AB655, s. 177 3Section 177. 227.14 (2) (a) of the statutes is amended to read:
AB655,74,64 227.14 (2) (a) An agency shall prepare in plain language an analysis of each
5proposed rule, which shall be printed with the proposed rule when it is published or
6distributed. The analysis shall include a all of the following:
AB655,74,8 71. A reference to each statute that the proposed rule interprets, each statute
8that authorizes its promulgation, each related statute or related rule and a.
AB655,74,9 92. A brief summary of the proposed rule.
AB655, s. 178 10Section 178. 227.14 (2) (a) 3. of the statutes is created to read:
AB655,74,1211 227.14 (2) (a) 3. A summary of the relevant legal interpretations and policy
12considerations underlying the proposed rule.
AB655, s. 179 13Section 179. 227.14 (2) (a) 4. of the statutes is created to read:
AB655,74,1514 227.14 (2) (a) 4. A summary of existing and anticipated federal regulatory
15programs intended to address similar matters.
AB655, s. 180 16Section 180. 227.14 (2) (a) 5. of the statutes is created to read:
AB655,74,2217 227.14 (2) (a) 5. A summary of the factual data, studies, and other sources of
18information on which the proposed rule is based, the methodology used to obtain and
19analyze the data, studies, and other sources of information, how the data, studies,
20and other sources of information support the regulatory approach chosen for the rule,
21and how the data, studies, and other sources of information support any required
22agency's findings.
AB655, s. 181 23Section 181. 227.14 (2) (a) 6. of the statutes is created to read:
AB655,75,3
1227.14 (2) (a) 6. Any analysis and supporting documentation used when the
2agency considered the rule's effect on small businesses under s. 227.114 or used when
3preparing an economic impact report under s. 227.137 (3).
AB655, s. 182 4Section 182. 227.14 (4) (b) 3. of the statutes is created to read:
AB655,75,75 227.14 (4) (b) 3. For rules that the agency determines may have a significant
6fiscal effect on the private sector, the anticipated costs that will be incurred by the
7private sector in complying with the rule.
AB655, s. 183 8Section 183. 227.185 of the statutes is created to read:
AB655,75,16 9227.185 Approval by governor. After a proposed rule is in final draft form
10and approved by the department of administration under s. 227.138 (3), the agency
11shall submit the rule to the governor. The governor may approve, modify, or reject
12the proposed rule. If the governor approves a proposed rule, the governor shall
13provide the agency with a written notice of that approval. No proposed rule may be
14submitted to the legislature for review under s. 227.19 (2) or filed with the office of
15secretary of state or revisor unless the governor has approved the proposed rule in
16writing. This section does not apply to emergency rules promulgated under s. 227.24.
AB655, s. 184 17Section 184. 227.19 (2) of the statutes is amended to read:
AB655,76,518 227.19 (2) Notification of legislature. An agency shall submit a notice to the
19presiding officer of each house of the legislature when a proposed rule is in final draft
20form and approved by the governor. The notice shall be submitted in triplicate and
21shall be accompanied by a report in the form specified under sub. (3). A notice
22received under this subsection on or after September 1 of an even-numbered year
23shall be considered received on the first day of the next regular session of the
24legislature. Each presiding officer shall, within 7 working days following the day on
25which the notice and report are received, refer them to one committee, which may

1be either a standing committee or a joint legislative committee created by law, except
2the joint committee for review of administrative rules. The agency shall submit to
3the revisor for publication in the register a statement that a proposed rule has been
4submitted to the presiding officer of each house of the legislature. Each presiding
5officer shall enter a similar statement in the journal of his or her house.
AB655, s. 185 6Section 185. 227.19 (3) (intro.) of the statutes is amended to read:
AB655,76,137 227.19 (3) Form of report. (intro.) The report required under sub. (2) shall be
8in writing and shall include the proposed rule in the form specified in s. 227.14 (1),
9the material specified in s. 227.14 (2) to (4), a copy of any economic impact report
10prepared by the agency under s. 227.137, a copy of the report prepared by the
11department of administration under s. 227.138, a copy of the written approval of the
12governor under s. 227.185,
a copy of any recommendations of the legislative council
13staff, and an analysis. The analysis shall include:
AB655, s. 186 14Section 186. 227.19 (3) (a) of the statutes is amended to read:
AB655,76,1715 227.19 (3) (a) A detailed statement explaining the need for basis and purpose
16of
the proposed rule, including how the proposed rule advances relevant statutory
17goals or purposes
.
AB655, s. 187 18Section 187. 227.19 (3) (am) of the statutes is created to read:
AB655,76,2119 227.19 (3) (am) An analysis of policy alternatives to the proposed rule,
20including reliance on federal regulatory programs, and an explanation for the
21rejection of those alternatives.
AB655, s. 188 22Section 188. 227.19 (3) (b) of the statutes is amended to read:
AB655,77,223 227.19 (3) (b) An A summary of public comments to the proposed rule and the
24agency's response to those comments, and an
explanation of any modification made

1in the proposed rule as a result of public comments or testimony received at a public
2hearing.
AB655, s. 189 3Section 189. 227.19 (3) (cm) of the statutes is created to read:
AB655,77,54 227.19 (3) (cm) Any changes to the analysis prepared under s. 227.14 (2) or the
5fiscal estimate prepared under s. 227.14 (4).
AB655, s. 190 6Section 190. 227.40 (4m) of the statutes is created to read:
AB655,77,137 227.40 (4m) (a) In any proceeding under this section for judicial review of a
8rule, the court shall conduct the review without a jury. The review shall be confined
9to a substantial inquiry of the agency record, as necessarily and appropriately
10supplemented by evidence presented to the court. The agency record includes the
11economic impact report and documentation required under s. 227.137 (3), the
12analysis and documentation required under ss. 227.14 (2) and 227.19 (3), and public
13comments on the rule.
AB655,77,1614 (b) The court shall treat separately disputed issues of agency procedure,
15interpretations of law, and determinations of fact or policy within the agency's
16exercise of delegated discretion.
AB655,77,2417 (c) When reviewing whether a rule is invalid as promulgated for failure to
18comply with statutory rule-making procedures under this chapter, the court shall
19determine the adequacy of the factual basis to support the rule and the related
20reasoning employed by the agency to reach its conclusions. When determining the
21adequacy of the factual basis to support the rule, the court shall consider relevant
22comments on and alternatives to the rule's approach offered by affected parties
23during the rule-making process. Based on this review, the court shall find the rule
24invalid if the agency's decision-making process was arbitrary and capricious.
AB655,78,4
1(d) The court shall find a rule invalid if it determines that the adequacy of the
2rule-making process or that the validity of the regulatory approach was impaired by
3a material error in agency procedure or a failure of the agency to follow prescribed
4procedure.
AB655,78,105 (e) When an agency's statutory authority to promulgate a rule is predicated on
6the rule being comparable to relevant federal programs or standards, including
7requirements that the rule be similar to, consistent with, or no more restrictive than
8federal programs or standards, the court shall conduct a de novo review of the agency
9record to determine if the agency determination that the rule was comparable to the
10federal program or standards was supported by substantial evidence.
AB655,78,1511 (f) When an agency's statutory authority to promulgate a rule exceeding
12relevant federal programs or standards is predicated on the agency making a finding
13of need, including a need to protect human health or the environment, the court shall
14review the agency's record to determine if the agency's findings were supported by
15substantial evidence.
AB655,78,1816 (g) If a court finds that the agency's analysis and determinations under s.
17227.137 (3) are arbitrary and capricious, the court shall find the rule invalid as
18without compliance with statutory rule-making procedures set forth in this chapter.
AB655, s. 191 19Section 191. 227.43 (1g) of the statutes is created to read:
AB655,78,2120 227.43 (1g) The administrator of the division of hearings and appeals shall
21randomly assign hearing examiners to preside over any hearing under this section.
AB655, s. 192 22Section 192. 227.44 (2) (d) of the statutes is created to read:
AB655,78,2323 227.44 (2) (d) The name and title of the person who will conduct the hearing.
AB655, s. 193 24Section 193. 227.445 of the statutes is created to read:
AB655,79,4
1227.445 Substitution of hearing examiner. (1) A person requesting a
2hearing before a hearing examiner may file a written request for a substitution of a
3new hearing examiner for the hearing examiner assigned to the matter. The written
4request shall be filed not later than 10 days after receipt of the notice under s. 227.44.
AB655,79,5 5(2) No person may file more than one such written request in any one hearing.
AB655,79,14 6(3) Upon receipt of the written request, the original hearing examiner shall
7have no further jurisdiction in the matter except to determine if the request was
8made timely and in proper form. If the hearing examiner fails to make a
9determination as to allowing the substitution within 7 days, the hearing examiner
10shall refer the matter to the administrator of the division of hearings and appeals for
11the determination and reassignment of the hearing as necessary. If the written
12request is determined to be proper, the matter shall be transferred to another
13hearing examiner. Upon transfer, the hearing examiner shall transmit to the new
14hearing examiner all the papers in the matter.
AB655, s. 194 15Section 194. 227.45 (7) (intro.) of the statutes is renumbered 227.45 (7) and
16amended to read:
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