ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2003 SENATE BILL 100
February 24, 2004 - Offered by Representative McCormick.
SB100-ASA1,1,8 1An Act to repeal 227.114 (1) (b); to renumber and amend 227.114 (1) (a); to
2amend
227.114 (2) (intro.), 227.485 (2) (c), 814.245 (2) (b) and 814.245 (5) (a)
32.; and to create 15.155 (5), 227.114 (6m), 227.114 (7m), 227.135 (1) (e), 227.14
4(2g), 227.14 (2m), 227.15 (1m), 227.17 (3) (i), 227.22 (2) (e), 227.24 (3m), 227.30,
5227.40 (2) (f) and 895.59 of the statutes; relating to: administrative rule
6making regarding small businesses, data used by administrative agencies in
7preparing proposed rules, increasing attorney fees, creating an Internet site for
8proposed rules, and creating a Small Business Regulatory Review Board.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB100-ASA1, s. 1 9Section 1. 15.155 (5) of the statutes is created to read:
SB100-ASA1,2,1210 15.155 (5) Small business regulatory review board. There is created a small
11business regulatory review board, attached to the department of commerce under s.

115.03. The board shall consist of a representative of the department of
2administration; a representative of the department of agriculture, trade and
3consumer protection; a representative of the department of commerce; a
4representative of the department of health and family services; a representative of
5the department of natural resources; a representative of the department of
6regulation and licensing; a representative of the department of revenue; a
7representative of the department of workforce development; 6 representatives of
8small businesses, as defined in s. 227.114 (1), who shall be appointed for 3-year
9terms; and the chairpersons of one senate and one assembly committee concerned
10with small businesses, appointed as are members of standing committees. The
11representatives of the departments shall be selected by the secretary of that
12department.
SB100-ASA1, s. 2 13Section 2. 227.114 (1) (a) of the statutes is renumbered 227.114 (1) and
14amended to read:
SB100-ASA1,2,2215 227.114 (1) In this section, "small business" means a business entity, including
16its affiliates, which is independently owned and operated and not dominant in its
17field, and which employs 25 or fewer than 25 full-time employees or which has gross
18annual sales of less than $2,500,000. For purposes of a specific rule, an agency may
19define small business to include more employees or greater gross annual sales if
20necessary to adapt the rule to the needs and problems of small businesses. A "small
21business" may also be defined in accordance with other standards established by an
22agency by rule
$5,000,000.
SB100-ASA1, s. 3 23Section 3. 227.114 (1) (b) of the statutes is repealed.
SB100-ASA1, s. 4 24Section 4. 227.114 (2) (intro.) of the statutes is amended to read:
SB100-ASA1,3,3
1227.114 (2) (intro.) When an agency proposes or revises a rule that may have
2an effect on small businesses, the agency shall consider each of the following methods
3for reducing the impact of the rule on small businesses:
SB100-ASA1, s. 5 4Section 5. 227.114 (6m) of the statutes is created to read:
SB100-ASA1,3,65 227.114 (6m) (a) Notwithstanding sub. (1), in this subsection, "small business"
6does not include an entity, as defined in s. 48.685 (1) (b) or 50.065 (1) (c).
SB100-ASA1,3,97 (b) A small business may commence an action against an agency for injunctive
8relief to prevent the imposition of a penalty if the small business is subject to the
9penalty as the result of any of the following:
SB100-ASA1,3,1210 1. The small business acted or failed to act due to the failure by the agency's
11employee, officer, or agent with regulatory responsibility for that legal requirement
12to respond to a specific question in a reasonable time.
SB100-ASA1,3,1513 2. The small business acted or failed to act in response to inaccurate advice
14given to the small business by the agency's employee, officer, or agent with regulatory
15responsibility for that legal requirement.
SB100-ASA1,3,1816 (c) The small business may commence the action in the circuit court for the
17county where the property affected is located or, if no property is affected, in the
18circuit court for the county where the dispute arose.
SB100-ASA1,3,2019 (d) The circuit court may issue an order enjoining the imposition of the penalty
20if the court determines that par. (b) 1. or 2. applies.
SB100-ASA1, s. 6 21Section 6. 227.114 (7m) of the statutes is created to read:
SB100-ASA1,3,2422 227.114 (7m) The agency shall designate a small business regulatory
23coordinator to act as a contact person for small business regulatory issues and shall
24publicize that person's electronic mail address and telephone number.
SB100-ASA1, s. 7 25Section 7. 227.135 (1) (e) of the statutes is created to read:
SB100-ASA1,4,1
1227.135 (1) (e) A description of all of the entities that will be affected by the rule.
SB100-ASA1, s. 8 2Section 8. 227.14 (2g) of the statutes is created to read:
SB100-ASA1,4,193 227.14 (2g) Fiscal effect of rule. On the same day that an agency publishes
4a proposed rule under this section that may have a significant economic impact on
5small businesses, the agency shall submit the proposed rule and the analysis
6required under sub. (2) to the small business regulatory review board. The board
7may use cost-benefit analysis to determine the fiscal effect of the rule on small
8businesses and shall determine whether the agency has complied with subs. (2) and
9(2m) and s. 227.114 (2) and (3). Except as provided in subs. (1m) and (1s), each
10proposed rule shall include provisions detailing how the rule will be enforced. If the
11board determines that the rule does not include an enforcement provision or that the
12agency failed to comply with sub. (2) or (2m) or s. 227.114 (2) or (3), the board shall
13notify the agency of that determination and ask the agency to comply with any of
14those requirements. In addition, the board may submit suggested changes in the
15proposed rule to the agency, including proposals to reduce the use of cross-references
16in the rule. The board shall send a report of those suggestions and of any notice of
17failure to include enforcement provisions or to comply with sub. (2) or (2m) or s.
18227.114 (2) or (3) to the legislative council staff. The notification to the agency may
19include a request that the agency do any of the following:
SB100-ASA1,4,2120 (a) Verify that the proposed rule does not conflict with, overlap, or duplicate
21other rules or federal regulations.
SB100-ASA1,4,2422 (b) Require the inclusion of fee information and fee schedules in the analysis
23under sub. (2), including why fees are necessary and for what purpose the fees will
24be used.
SB100-ASA1, s. 9 25Section 9. 227.14 (2m) of the statutes is created to read:
SB100-ASA1,5,7
1227.14 (2m) Quality of agency data. Each agency shall, in cooperation with
2the department of administration, ensure the accuracy, integrity, objectivity, and
3consistency of the data that is used when preparing a proposed rule and when
4completing an analysis of the proposed rule under sub. (2). Each agency shall reduce
5the amount of cross-references to the statutes in proposed and final rules. A person
6affected by a proposed rule may submit comments to the agency regarding the
7accuracy, integrity, or consistency of that data.
SB100-ASA1, s. 10 8Section 10. 227.15 (1m) of the statutes is created to read:
SB100-ASA1,5,169 227.15 (1m) Internet access to proposed rule. The joint legislative council
10shall create and maintain an Internet site that includes a copy of each proposed rule
11received under sub. (1) in a format that allows the site to be searched using keywords.
12Each agency shall provide the joint legislative council with the proposed rules and
13other information needed to comply with this subsection in the format required by
14the joint legislative council. The Internet site shall include a section devoted to
15proposed rules affecting small businesses, as defined in s. 227.114 (1). The Internet
16site shall also include all of the following:
SB100-ASA1,5,1817 (a) The electronic mail address and telephone number of an agency contact
18person for each proposed rule.
SB100-ASA1,5,1919 (b) The material required under s. 227.14 (2), (3), and (4).
SB100-ASA1,5,2020 (c) Any report submitted to the legislative council staff under s. 227.14 (2g).
SB100-ASA1,5,2221 (d) The written report of the legislative council staff review of the proposed rule
22prepared under sub. (2) and any agency comments regarding that report.
SB100-ASA1,5,2523 (e) The time, date, and place of any public hearing specified in the notice in s.
24227.17 as soon as that notice is submitted to the revisor of statutes under s. 227.17
25(1) (a).
SB100-ASA1,6,2
1(f) The place where comments on the proposed rule should be submitted and
2the deadline for submitting those comments.
SB100-ASA1, s. 11 3Section 11. 227.17 (3) (i) of the statutes is created to read:
SB100-ASA1,6,64 227.17 (3) (i) The electronic mail address and telephone number of the small
5business regulatory coordinator and a link to an Internet site that allows a person
6to review the rule and make comments regarding the rule.
SB100-ASA1, s. 12 7Section 12. 227.22 (2) (e) of the statutes is created to read:
SB100-ASA1,6,108 227.22 (2) (e) The rule has a significant economic impact on small businesses,
9as defined in s. 227.114 (1), in which case the rule applies to small businesses on the
10first day of the 3rd month commencing after the date of publication of the rule.
SB100-ASA1, s. 13 11Section 13. 227.24 (3m) of the statutes is created to read:
SB100-ASA1,6,2212 227.24 (3m) Review by the small business regulatory review board. On the
13same day that the agency files a rule under sub. (3) that may have a significant
14economic impact on small businesses, as defined in s. 227.114 (1), the agency shall
15submit a copy of the rule to the small business regulatory review board. The board
16may use cost-benefit analysis to determine the fiscal effect of the emergency rule on
17small businesses and shall determine whether the agency complied with ss. 227.114
18(2) and (3) and 227.14 (2m). If the board determines that the agency failed to comply
19with s. 227.114 (2) or (3) or 227.14 (2m), the board shall notify the agency of that
20determination and ask the agency to comply with any of those provisions. In
21addition, the board may submit suggested changes in the proposed rule to the agency
22and may include a request that the agency do any of the following:
SB100-ASA1,6,2423 (a) Explain how the agency has responded to comments received from small
24businesses regarding the emergency rule.
SB100-ASA1,7,2
1(b) Verify that the emergency rule does not conflict with, overlap, or duplicate
2other rules or federal regulations.
SB100-ASA1, s. 14 3Section 14. 227.30 of the statutes is created to read:
SB100-ASA1,7,11 4227.30 Review of administrative rules or guidelines. (1) The small
5business regulatory review board may review the rules and guidelines of any state
6agency to determine whether any of those rules or guidelines place an unnecessary
7burden on the ability of small businesses, as defined in s. 227.114 (1), to conduct their
8affairs. If the board determines that a rule or guideline places an unnecessary
9burden on the ability of a small business to conduct its affairs, the board shall submit
10a report and recommendations regarding the rule or guideline to the joint committee
11for review of administrative rules.
SB100-ASA1,7,13 12(2) When reviewing the report, the joint committee for review of administrative
13rules shall consider all of the following:
SB100-ASA1,7,1414 (a) The continued need for the rule or guideline.
SB100-ASA1,7,1615 (b) The nature of the complaints and comments received from the public
16regarding the rule or guideline.
SB100-ASA1,7,1717 (c) The complexity of the rule or guideline.
SB100-ASA1,7,1918 (d) The extent to which the rule or guideline overlaps, duplicates, or conflicts
19with federal regulations, other state rules, or local ordinances.
SB100-ASA1,7,2020 (e) The length of time since the rule or guideline has been evaluated.
SB100-ASA1,7,2321 (f) The degree to which technology, economic conditions, or other factors have
22changed in the subject area affected by the rule or guideline since the rule or
23guideline was promulgated.
SB100-ASA1,8,2 24(3) The joint committee for review of administrative rules may refer the report
25regarding the rule or guideline to the presiding officer of each house of the legislature

1for referral to a committee under s. 227.19 (2) or may review the rule or guideline as
2provided under s. 227.19 (5).
SB100-ASA1, s. 15 3Section 15. 227.40 (2) (f) of the statutes is created to read:
SB100-ASA1,8,44 227.40 (2) (f) Proceedings under s. 227.114 (6m) or 227.14 (2g).
SB100-ASA1, s. 16 5Section 16. 227.485 (2) (c) of the statutes is amended to read:
SB100-ASA1,8,96 227.485 (2) (c) "Small business" means a business entity, including its
7affiliates, which is independently owned and operated, and which employs 25 or
8fewer than 25 full-time employees or which has gross annual sales of less than
9$2,500,000 $5,000,000.
SB100-ASA1, s. 17 10Section 17. 814.245 (2) (b) of the statutes is amended to read:
SB100-ASA1,8,1411 814.245 (2) (b) "Small business" means a business entity, including its
12affiliates, which is independently owned and operated, and which employs 25 or
13fewer than 25 full-time employees or which has gross annual sales of less than
14$2,500,000 $5,000,000.
SB100-ASA1, s. 18 15Section 18. 814.245 (5) (a) 2. of the statutes is amended to read:
SB100-ASA1,8,1916 814.245 (5) (a) 2. Attorney or agent fees may not be awarded in excess of $75
17$150 per hour unless the court determines that an increase in the cost of living or a
18special factor, such as the limited availability of qualified attorneys or agents,
19justifies a higher fee.
SB100-ASA1, s. 19 20Section 19. 895.59 of the statutes is created to read:
SB100-ASA1,8,22 21895.59 Liability exemption; disclosure of rule violations. (1) In this
22section:
SB100-ASA1,8,2323 (a) "Agency" has the meaning given in s. 227.01 (1).
SB100-ASA1,8,2524 (b) "Small business" has the meaning given in s. 227.114 (1), but does not
25include an entity, as defined in s. 48.685 (1) (b) or 50.065 (1) (c).
SB100-ASA1,9,11
1(2) Each agency shall promulgate a rule that requires the agency to disclose
2in advance the discretion that the agency will follow in the enforcement of rules and
3guidelines against a small business. The rule promulgated under this subsection
4shall include the reduction or waiver of penalties for a voluntary disclosure, by a
5small business, of actual or potential violations of rules or guidelines. The rule
6promulgated under this subsection may include the consideration of the violator's
7ability to pay when determining the amount of any monetary penalty, assessment,
8or surcharge. The rule promulgated under this subsection shall specify when the
9agency will not allow discretion in the enforcement of a rule or guideline against
10small businesses and shall include all of the following situations in which discretion
11is not allowed:
SB100-ASA1,9,1312 (a) The agency discovers the violation before the small business discloses the
13violation.
SB100-ASA1,9,1514 (b) The violation is disclosed after an agency audit or inspection of the small
15business has been scheduled.
SB100-ASA1,9,1716 (c) The violation was identified as part of the monitoring or sampling
17requirements that are consistent with the requirements under an existing permit.
SB100-ASA1,9,1918 (d) The violation results in a substantial economic advantage for the small
19business.
SB100-ASA1,9,2020 (e) The small business has repeatedly violated the same rule or guideline.
SB100-ASA1,9,2221 (f) The violation may result in an imminent endangerment to the environment,
22or to public health or safety.
SB100-ASA1, s. 20 23Section 20. Nonstatutory provisions.
SB100-ASA1,9,2524 (1) Notwithstanding the length of terms specified for the representatives of
25small businesses of the small business regulatory review board under section 15.155

1(5) of the statutes, as created by this act, 3 of the initial representatives of small
2businesses shall be appointed for terms expiring on May 1, 2005, and the other 3
3initial representatives of small businesses shall be appointed for terms expiring on
4May 1, 2006.
SB100-ASA1, s. 21 5Section 21. Effective date.
SB100-ASA1,10,76 (1) This act takes effect on the first day of the 4th month beginning after
7publication.
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