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:
AB655,79,2517 227.45 (7) In any class 2 proceeding, each party shall have the right, prior to
18the date set for hearing, to take and preserve evidence as provided in ch. 804. Upon
19motion by a party or by the person from whom discovery is sought in any class 2
20proceeding, and for good cause shown, the hearing examiner may make any order in
21accordance with s. 804.01 which justice requires to protect a party or person from
22annoyance, embarrassment, oppression, or undue burden or expense. In any class
231 or class 3 proceeding, an agency may by rule permit the taking and preservation
24of evidence, but in every such proceeding the taking and preservation of evidence
25shall be permitted with respect to a witness:
AB655, s. 195
1Section 195. 227.45 (7) (a) to (d) of the statutes are repealed.
AB655, s. 196 2Section 196. 227.46 (1) (intro.) of the statutes is amended to read:
AB655,80,93 227.46 (1) (intro.) Except as provided under s. 227.43 (1), an agency may
4designate an official of the agency or an employee on its staff or borrowed from
5another agency under s. 20.901 or 230.047 as a hearing examiner to preside over any
6contested case. In hearings under s. 19.52, a reserve judge shall be appointed. A
7hearing examiner does not have authority to address or make decisions regarding
8possible constitutional issues.
Subject to rules of the agency, examiners presiding at
9hearings may:
AB655, s. 197 10Section 197. 227.46 (1) (h) of the statutes is amended to read:
AB655,80,1211 227.46 (1) (h) Make or recommend findings of fact, conclusions of law, and
12decisions to the extent permitted by law.
AB655, s. 198 13Section 198. 227.46 (2) of the statutes is repealed.
AB655, s. 199 14Section 199. 227.46 (2m) of the statutes is repealed.
AB655, s. 200 15Section 200. 227.46 (3) of the statutes is repealed.
AB655, s. 201 16Section 201. 227.46 (4) of the statutes is repealed.
AB655, s. 202 17Section 202. 227.46 (6) of the statutes is amended to read:
AB655,80,2418 227.46 (6) The functions of persons presiding at a hearing or participating in
19proposed or final decisions shall be performed in an impartial manner. A hearing
20examiner or agency official may at any time disqualify himself or herself. In class
212 and 3 proceedings, on the filing in good faith of a timely and sufficient affidavit of
22personal bias or other disqualification of a hearing examiner or official, the agency
23or hearing examiner shall determine the matter as part of the record and decision
24in the case.
AB655, s. 203 25Section 203. 227.47 (1) of the statutes is amended to read:
AB655,81,9
1227.47 (1) Except as provided in sub. (2), every proposed or final decision of an
2agency or hearing examiner following a hearing and every final decision of an agency
3shall be in writing accompanied by findings of fact and conclusions of law. The
4findings of fact shall consist of a concise and separate statement of the ultimate
5conclusions upon each material issue of fact without recital of evidence. Every
6proposed or final decision shall include a list of the names and addresses of all
7persons who appeared before the agency in the proceeding who are considered
8parties for purposes of review under s. 227.53. The agency shall by rule establish a
9procedure for determination of parties.
AB655, s. 204 10Section 204. 227.483 of the statutes is created to read:
AB655,81,15 11227.483 Costs upon frivolous claims. (1) If a hearing examiner finds, at
12any time during the proceeding, that an administrative hearing commenced or
13continued by a petitioner or a claim or defense used by a party is frivolous, the
14hearing examiner shall award the successful party his or her costs, as determined
15under s. 814.04, and reasonable attorney fees.
AB655,81,19 16(2) If the costs and fees awarded under sub. (1) are awarded against the party
17other than a public agency, those costs may be assessed fully against either the party
18or the attorney representing the party or may be assessed so that the party and the
19attorney each pay a portion of the costs and fees.
AB655,81,21 20(3) To find a petition for a hearing or a claim or defense to be frivolous under
21sub. (1), the hearing examiner must find at least one of the following:
AB655,81,2322 (a) That the petition, claim, or defense was commenced, used, or continued in
23bad faith, solely for purposes of harassing or maliciously injuring another.
AB655,82,224 (b) That the party or the party's attorney knew, or should have known, that the
25petition, claim, or defense was without any reasonable basis in law or equity and

1could not be supported by a good faith argument for an extension, modification, or
2reversal of existing law.
AB655, s. 205 3Section 205. 227.485 (5) of the statutes is amended to read:
AB655,82,164 227.485 (5) If the hearing examiner awards costs under sub. (3), he or she shall
5determine the costs under this subsection, except as modified under sub. (4). The
6decision on the merits of the case shall be placed in a proposed decision and
7submitted under ss. 227.47 and 227.48. The prevailing party shall submit, within
830 days after service of the proposed decision, to the hearing examiner and to the
9state agency which is the losing party an itemized application for fees and other
10expenses, including an itemized statement from any attorney or expert witness
11representing or appearing on behalf of the party stating the actual time expended
12and the rate at which fees and other expenses were computed. The state agency
13which is the losing party has 15 working days from the date of receipt of the
14application to respond in writing to the hearing examiner. The hearing examiner
15shall determine the amount of costs using the criteria specified in s. 814.245 (5) and
16include an order for payment of costs in the final decision.
AB655, s. 206 17Section 206. 227.53 (1) (a) 3. of the statutes is amended to read:
AB655,83,618 227.53 (1) (a) 3. If the petitioner is a resident, the proceedings shall be held in
19the circuit court for the county where the petitioner resides, except that if the
20petitioner is an agency, the proceedings shall be in the circuit court for the county
21where the respondent resides and except as provided in ss. 73.0301 (2) (b) 2., 77.59
22(6) (b), 182.70 (6), and 182.71 (5) (g). The proceedings shall be in the circuit court for
23Dane County if
If the petitioner is a nonresident , the proceedings shall be held in the
24county where the property affected by the decision is located or, if no property is
25affected, in the county where the dispute arose
. If all parties stipulate and the court

1to which the parties desire to transfer the proceedings agrees, the proceedings may
2be held in the county designated by the parties. If 2 or more petitions for review of
3the same decision are filed in different counties, the circuit judge for the county in
4which a petition for review of the decision was first filed shall determine the venue
5for judicial review of the decision, and shall order transfer or consolidation where
6appropriate.
AB655, s. 207 7Section 207. 227.57 (11) of the statutes is created to read:
AB655,83,108 227.57 (11) If the decision of the hearing examiner is inconsistent with the
9position taken at the hearing by the agency, the court shall give no deference to the
10examiner's decision when conducting its review.
AB655, s. 208 11Section 208. 236.16 (3) (d) (intro.) of the statutes is amended to read:
AB655,83,2312 236.16 (3) (d) (intro.) All of the owners of all of the land adjacent to a public
13access established under par. (a) to an inland lake, as defined in s. 30.92 (1) (bk), may
14petition the city, village, town or county that owns the public access to construct
15shoreline erosion control measures. Subject to par. (e), the city, village, town or
16county shall construct the requested shoreline erosion control measures or request
17the department of natural resources to determine the need for shoreline erosion
18control measures. Upon receipt of a request under this paragraph from a city, village,
19town or county, the department of natural resources shall follow the notice and
20hearing
procedures in s. 30.02 (3) and (4) 30.208 (3) to (5). Subject to par. (e), the city,
21village, town or county shall construct shoreline erosion control measures as
22required by the department of natural resources if the department of natural
23resources determines all of the following:
AB655, s. 209 24Section 209. 241.02 (3) of the statutes is created to read:
AB655,83,2525 241.02 (3) (a) In this subsection:
AB655,84,3
11. "Affiliate" of a bank, savings bank, or savings and loan association means
2a business entity that controls, is controlled by, or is under common control with the
3bank, savings bank, or savings and loan association.
AB655,84,64 2. "Financial institution" means a bank, savings bank, or savings and loan
5association organized under the laws of this state, another state, or the United States
6and any affiliate of such a bank, savings bank, or savings and loan association.
AB655,84,117 (b) Except as provided in par. (d), no action may be commenced against a
8financial institution on or in connection with any of the following promises or
9commitments of the financial institution unless the promise or commitment is in
10writing, sets forth relevant terms and conditions, and is signed by the financial
11institution:
AB655,84,1312 1. A promise or commitment to lend money, grant or extend credit, or make any
13other financial accommodation.
AB655,84,1614 2. A promise or commitment to renew, extend, modify, or permit a delay in
15repayment or performance of a loan, extension of credit, or other financial
16accommodation.
AB655,84,1917 (c) Except as provided in par. (d), a promise or commitment by a financial
18institution described in par. (b) may not be enforced under the doctrine of promissory
19estoppel.
AB655,84,2120 (d) Paragraphs (b) and (c) do not apply to credit transactions that are subject
21to chs. 421 to 427.
AB655, s. 210 22Section 210. 281.22 (2) (c) of the statutes is amended to read:
AB655,84,2523 281.22 (2) (c) If more than one fee under this section or s. 30.28 (2) (a) or 31.39
24(2) (a) is applicable to a project, the department shall charge only the highest fee of
25those that are applicable.
AB655, s. 211
1Section 211. 285.01 (12m) of the statutes is created to read:
AB655,85,32 285.01 (12m) "Certified contractor" means a contractor that is certified under
3s. 285.755.
AB655, s. 212 4Section 212. 285.11 (6) (intro.) of the statutes is renumbered 285.11 (6) and
5amended to read:
AB655,85,156 285.11 (6) Prepare and develop one or more comprehensive plans for the
7prevention, abatement and control of air pollution in this state. The department
8thereafter shall be responsible for the revision and implementation of the plans. The
9rules or control strategies submitted to the federal environmental protection agency
10under the federal clean air act for control of atmospheric ozone shall conform with
11the federal clean air act unless, based on the recommendation of the natural
12resources board or the head of the department, as defined in s. 15.01 (8), of any other
13department, as defined in s. 15.01 (5), that promulgates a rule or establishes a control
14strategy, the governor determines that measures beyond those required by the
15federal clean air act meet any of the following criteria:
AB655, s. 213 16Section 213. 285.11 (6) (a) and (b) of the statutes are repealed.
AB655, s. 214 17Section 214. 285.11 (9) of the statutes is amended to read:
AB655,85,1918 285.11 (9) Prepare and adopt minimum standards for the emission of mercury
19compounds or metallic mercury into the air, consistent with s. 285.27 (2) (b).
AB655, s. 215 20Section 215. 285.11 (17) of the statutes is repealed and recreated to read:
AB655,86,621 285.11 (17) Promulgate rules that incorporate changes made by regulations of
22the federal environmental protection agency governing review of modifications of
23major sources under 42 USC 7470 to 7515, including regulations that were published
24in the Federal Register on December 31, 2002, and October 27, 2003. The
25department may not include in the rules any requirements that are inconsistent with

1or more stringent than the federal regulations. To the extent possible, the
2department shall incorporate similar changes for minor sources if the changes
3reduce administrative requirements for minor sources. The department shall
4submit in proposed form rules required under this subsection to the legislative
5council staff under s. 227.15 (1) no later than the first day of the 7th month after the
6regulations making the changes on which the rules are based take effect.
AB655, s. 216 7Section 216. 285.14 of the statutes is created to read:
AB655,86,13 8285.14 State implementation plans. (1) Content. The department may
9only include in a state implementation plan under 42 USC 7410 rules or
10requirements that are necessary to obtain approval of the plan by the federal
11environmental protection agency, including requirements that are necessary in
12order to comply with the percentage reductions specified in 42 USC 7511a (b) (1) (A)
13or (c) (2) (B).
AB655,87,5 14(2) Review by committee for review of administrative rules. At least 90 days
15before the department is required to submit a state implementation plan to the
16federal environmental protection agency, the department shall prepare and submit
17a report to the joint committee for review of administrative rules that describes the
18proposed plan and contains all of the supporting documents that the department
19intends to submit with the plan. If, within 30 days after the department submits the
20report, the cochairpersons of the joint committee for review of administrative rules
21do not return the report to the department with a written explanation of why the
22committee is returning the report, the department may submit the plan. If, within
2330 days after the department submits the report, the cochairpersons of the joint
24committee for review of administrative rules return the report to the department
25with a written explanation of why the committee is returning the report, the

1department may not submit the plan until the committee agrees that the department
2has adequately addressed the issues raised by the committee. If the secretary
3disagrees with the committee's reasons for returning the report, the secretary shall
4so notify the committee in writing. This subsection does not apply to a modification
5to a state implementation plan relating to an individual source.
AB655, s. 217 6Section 217. 285.17 (2) of the statutes is amended to read:
AB655,87,217 285.17 (2) The department may, by rule or in an operation permit, require the
8owner or operator of an air contaminant source to monitor the emissions of the air
9contaminant source or to monitor the ambient air in the vicinity of the air
10contaminant source and to report the results of the monitoring to the department.
11The department may specify methods for conducting the monitoring and for
12analyzing the results of the monitoring. The department shall require the owner or
13operator of a major source to report the results of any required monitoring of
14emissions from the major source to the department no less often than every 6 months.
15The department may not include a monitoring requirement in an operation permit
16if the applicant demonstrates that the cost of compliance with the requirement would
17exceed the cost of compliance with monitoring requirements imposed on similar air
18contaminant sources by a state adjacent to this state or if the monitoring is not
19needed to provide assurance of compliance with requirements that apply to the air
20contaminant source, unless the monitoring is required under the federal clean air
21act.
AB655, s. 218 22Section 218. 285.21 (1) (a) (title) of the statutes is repealed.
AB655, s. 219 23Section 219. 285.21 (1) (a) of the statutes is renumbered 285.21 (1) and
24amended to read:
AB655,88,4
1285.21 (1) Ambient air quality standards. If an ambient air quality standard
2is promulgated under section 109 of the federal clean air act, the department shall
3promulgate by rule a similar standard but this standard may not be more restrictive
4than the federal standard except as provided under sub. (4).
AB655, s. 220 5Section 220. 285.21 (1) (b) of the statutes is repealed.
AB655, s. 221 6Section 221. 285.21 (2) of the statutes is amended to read:
AB655,88,117 285.21 (2) Ambient air increment. The department shall promulgate by rule
8ambient air increments for various air contaminants in attainment areas. The
9ambient air increments shall be consistent with and not more restrictive, either in
10terms of the concentration or the contaminants to which they apply, than ambient
11air increments under the federal clean air act except as provided under sub. (4).
AB655, s. 222 12Section 222. 285.21 (4) of the statutes is amended to read:
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