2019 - 2020 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 605
January 27, 2020 - Offered by Representative Hutton.
1An Act to create
13.0963 of the statutes; relating to: reports on bills requiring
Analysis by the Legislative Reference Bureau
This bill requires the Legislative Audit Bureau to submit a report to the
legislature when a bill is introduced that requires a new occupational credential.
LAB must include in the report all of the following: an evaluation of whether
unregulated practice of the profession, occupation, or field recognizably harms or
endangers the health, safety, or welfare of the public; the specific identification of any
harm or endangerment including any credible evidence and the degree to which the
harm or endangerment is remote or speculative; an analysis made following the
procedure under the bill and any recommendations of the least restrictive
alternatives to manage or mitigate the harm to the public with the fewest negative
effects; an estimate of the number of individuals, businesses, or organizations that
would be affected by the requirements in the proposal or bill; an evaluation of the
negative effects of the proposal or bill on the public, the occupation, or any other
occupation or business; and the estimate of the total additional financial burden that
would be imposed on an individual as a result of the credential requirement.
A bill that creates a new occupational credential requires a report to be
completed by LAB and that requirement is noted on the bill's jacket. Once the bill
is introduced, the Legislative Reference Bureau submits a copy of the bill to LAB for
completion of the report. A legislator may direct the LRB to submit a copy of a
legislative proposal to the LAB before introduction. No later than 270 days after the
introduction of the bill, the LAB must submit the report to the chief clerk of the house
of the legislature in which the bill is introduced. The chief clerk must ensure that
the LAB's report is printed as an appendix to the bill, distributed in the same manner
as amendments, and distributed and made available to the public at the times
specified in the bill. The LAB and the legislature must publish the LAB's report on
their Internet sites. Under the bill, a bill that requires the LAB's report may not
receive a hearing or be voted on by either house or a standing committee before the
report is distributed. This procedure is similar to other requirements for reports on
introduced bills under current law such as the requirement that a social and
financial impact report be completed by the Office of the Commissioner of Insurance
for any bill that contains a health insurance mandate.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
13.0963 of the statutes is created to read:
213.0963 Review of bills creating occupational or business credentials. 3(1) Definitions.
In this section:
(a) “Agency” has the meaning given in s. 13.172 (1).
(b) “Occupational credential” means any license, permit, certificate, approval, 6
registration, charter, or similar form of permission that is nontransferable, is 7
granted by an agency to an individual that meets any personal qualifications 8
established by law, and is required by law in order to engage in a particular 9
profession or occupation.
10(2) Report on bills creating occupational licenses.
(a) A bill that creates a 11
new occupational credential requires a report under this section and shall have that 12
report requirement noted on its jacket when the jacket is prepared. When a bill that 13
requires a report under this section is introduced, the legislative reference bureau 14
shall submit a copy of the bill to the legislative audit bureau. A legislator may direct
the legislative reference bureau to submit a copy of a legislative proposal to the 2
legislative audit bureau before the proposal is introduced.
(b) No later than 270 days after the bill is introduced, the legislative audit 4
bureau shall submit the report as described under sub. (3) to the chief clerk of the 5
house of the legislature in which the bill is introduced. After receiving the report 6
from the legislative audit bureau, the chief clerk shall ensure all of the following:
1. The report prepared under this section is printed as an appendix to the 8
applicable bill and is distributed in the same manner as amendments.
2. The report is distributed, and is made available to the public, before any vote 10
is taken on the bill by either house of the legislature if the bill is not referred to a 11
standing committee, or before any public hearing is held before any standing 12
committee or, if no public hearing is held, before any vote is taken by the committee. 13
No bill requiring a report under this section may receive a hearing or be voted on by 14
either house or a standing committee before the report is distributed under this 15
subdivision. The legislative audit bureau and the legislature shall publish the report 16
on their Internet sites.
17(3) Preparation of report.
(a) The legislative audit bureau shall include all 18
of the following in a report required under sub. (2):
An evaluation of whether the unregulated practice of the profession, 20
occupation, or field recognizably harms or endangers the health, safety, or welfare 21
of the public.
2. A specific identification of any harm or endangerment described under subd. 23
1., any credible evidence of the harm or endangerment to consumers, and the degree 24
to which the harm or endangerment is remote or speculative.
3. An analysis completed in accordance with the procedure described in sub. 2
(4) and any recommendations of the least restrictive alternatives to manage or 3
mitigate the harm or endangerment to the public that have the least detrimental 4
4. An estimate of the number of individuals, businesses, or organizations that 6
would be affected by the requirements in the proposal or bill.
5. An evaluation of whether the proposal or bill may have a negative effect on 8
the public, the occupation for which the credential is being issued, or any other 9
occupation or business. If the proposal or bill is expected to have a negative effect, 10
the report shall include a description of the nature and magnitude of any negative 11
6. An estimate of the total additional financial burden that will be imposed on 13
an individual as a result of the credential requirement, including education or 14
training costs, examination fees, private credential fees, credential fees imposed by 15
the agency, and other costs that the individual will have to incur in order to obtain 16
(b) The legislative audit bureau shall request information from any individual, 18
business, or organization that the legislative audit bureau considers likely to be 19
affected by the proposed credential requirement to assist in the completion of the 20
report under this subsection. The legislative audit bureau may request a statement 21
or analysis from the agency that would be required to administer the occupational 22
credential. The legislative audit bureau may include in its report under this 23
subsection any statement or analysis from the agency that would be required to 24
administer the occupational credential. Individuals, businesses, organizations, and
agencies shall comply with requests by the legislative audit bureau for information 2
that is reasonably necessary for the legislative audit bureau to prepare the report.
3(4) Analysis procedure.
All of the following apply to the preparation of the 4
analysis that is required to be included in the report under sub. (3) (a) 3.:
(a) If the legislative audit bureau determines that any of the following apply, 6
it shall recommend that the legislature take no action on the proposal or bill:
1. After making the evaluation under sub. (3) (a) and (b), there is insufficient 8
credible evidence of harm or endangerment to the public or any harm or 9
endangerment identified is remote or speculative.
2. Any harm or endangerment identified in sub. (3) (a) 2. is manageable or may 11
be eliminated by market competition and any laws or rules in effect on the date the 12
legislative audit bureau begins its analysis. The legislative audit bureau shall 13
evaluate as an aspect of market competition under this subdivision whether any 14
private organization issues a credential, accreditation, or other recognition of 15
proficiency for the occupation or profession.
(b) If harm or endangerment identified in sub. (3) (a) 2. is present as 17
demonstrated by credible evidence and cannot be managed or mitigated by market 18
competition or any laws or rules in effect on the date the legislative audit bureau 19
begins its analysis, the legislative audit bureau shall analyze the benefits and 20
negative effects of regulatory alternatives to the bill or proposal, including an 21
analysis of, at least, all of the following alternatives, which are in the order of least 22
to most restrictive:
1. Requiring an individual or business to provide a notice to consumers so that 24
consumers may avoid the harm or endangerment.
2. Recognizing a credential or accreditation for an individual that is issued by 2
a private organization.
3. Allowing consumers to bring a specific private civil cause of action to remedy 4
a harm to the consumers.
4. Designating a particular practice as unprofessional conduct or unfair trade.
5. Regulating an aspect of the process of providing the specific goods or services 7
6. Requiring a governmental agency to inspect a business or practice location.
7. Requiring an individual or a business that employs the individual to take out 10
a bond, carry insurance, or meet another financial stability requirement.
8. Issuing a voluntary credential by a governmental agency to indicate that an 12
individual has met certain criteria.
9. Requiring an occupational credential as in the proposal or bill described in 14
sub. (2) but that has fewer or less stringent criteria for obtaining or maintaining the 15
credential than are required in the proposal or bill.
10. Requiring the occupational credential as proposed in the proposal or bill.
(c) In conducting its evaluation under par. (b), the legislative audit bureau shall 18
review and consider regulatory and credential requirements for that profession, 19
occupation, or field in other states. The legislative audit bureau shall include in its 20
report under sub. (3) a summary of any requirements reviewed under this 21
(1) Occupational license reports.
This act first applies to bills introduced on 2
first day of the next biennial legislative session beginning after the effective date of 3