Gubernatorial approval and statements of scope for proposed rules
Current law requires a statement of scope of a proposed rule to be approved by
the governor before a state employee or official may perform any activity in
connection with the drafting of the proposed rule. Under this bill, for rules that were
considered at the spring DNR-WCC meeting, only the Natural Resources Board
(board) is required to approve a statement of scope before those activities may be
performed.
Under current law, a state agency must prepare and obtain approval of a
revised statement of scope if, after a statement of scope is approved, the agency
changes the scope of the proposed rule in any meaningful or measurable way. Under
the bill, this requirement does not apply to rules that were considered at the spring
DNR-WCC meeting.
Under current law, a state agency must prepare and obtain approval of a
statement of scope for a proposed emergency rule in the same manner as a statement
of scope is prepared and approved for a nonemergency rule. Under the bill, a
statement of scope is not required for emergency rules considered at the spring
DNR-WCC meeting.
Current law requires a state agency to submit a proposed rule in final draft form
to the governor for approval before the rule may be submitted to the legislature for
review and to submit a proposed emergency rule in final draft form to the governor
for approval before the emergency rule may be filed with the Legislative Reference
Bureau for publication. The bill eliminates these requirements for gubernatorial
approval for rules that were considered at the spring DNR-WCC meeting.
Finally, the bill permits automatic approval of a statement of scope for rules
that were considered at the spring DNR-WCC meeting if the board does not
disapprove the statement of scope within 30 days after it is presented to the board,
or by the eleventh day after its publication in the Wisconsin Administrative Register,
whichever is later.
Economic impact analyses for proposed rules
When report must be prepared. Current law requires each state agency to
prepare an economic impact analysis for all rules proposed by the agency. It also
requires the Department of Administration to issue a report on a proposed rule, and
the secretary of administration (secretary) to approve a proposed rule, if the
economic impact analysis indicates that a total of $20,000,000 or more in
implementation and compliance costs are reasonably expected to be incurred by or
passed along to businesses, local governmental units, and individuals as a result of
the proposed rule. In addition, current law requires a state agency to prepare a
revised economic impact analysis if a proposed rule is modified after the original
economic impact analysis is submitted so as to significantly change the economic
impact of the proposed rule.
Under this bill, for rules that were considered at the spring DNR-WCC
meeting, an economic impact analysis is required only if the secretary directs the
analysis to be prepared on the petition of a municipality; an association that

represents a farm, labor, business, or professional group; or five or more persons who
would be affected by the proposed rule. The bill requires the secretary to direct the
preparation of such an analysis if 1) the proposed rule would cost affected persons
$20,000,000 or more during each of the first five years after the rule's
implementation to comply with the rule; or 2) the rule would adversely affect in a
material way the economy, a sector of the economy, productivity, competition, jobs,
the environment, public health or safety, or state, local, or tribal governments or
communities.
Content of analysis. Current law requires certain information to be included
in an economic impact analysis, including all of the following:
1. An analysis of the economic impact of the proposed rule, including
information on the economic effect on specific businesses, business sectors, public
utility ratepayers, local governmental units, and the state's economy as a whole.
2. An analysis of alternatives to the proposed rule, including the alternative
of not promulgating the rule.
3. A determination made in consultation with the businesses, local
governmental units, and individuals potentially affected by the proposed rule as to
whether the proposed rule would adversely affect in a material way the economy, a
sector of the economy, productivity, jobs, or the overall economic competitiveness of
this state.
4. Comparisons with the approaches used by the federal government and by
Illinois, Iowa, Michigan, and Minnesota to address the policy problem that the
proposed rule is intending to address and, if the approach chosen by the agency to
address that policy problem is different from those approaches, a statement as to why
the agency chose a different approach.
5. An assessment of how effective the proposed rule will be in addressing the
policy problem that the rule is intended to address.
This bill eliminates the requirements that this information be included in an
economic impact analysis for rules that were considered at the spring DNR-WCC
meeting. Under this bill, an economic impact analysis that is required for rules that
were considered at the spring DNR-WCC meeting must instead contain information
on the effect of the proposed rule on specific businesses, business sectors, and the
state's economy and must include all of the following: 1) an analysis and
quantification of the problem, including any risks to public health or the
environment, that the rule is intending to address; 2) an analysis and quantification
of the economic impact of the rule, including costs reasonably expected to be incurred
by the state, businesses, governmental units, and affected individuals; and 3) an
analysis of benefits of the rule, including how the rule reduces the risks and
addresses the problems that the rule is intended to address.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB608,1
1Section 1. 227.135 (2) of the statutes is amended to read:
SB608,4,142 227.135 (2) An Except as provided in sub. (2m), an agency that has prepared
3a statement of the scope of the proposed rule shall present the statement to the
4governor and to the individual or body with policy-making powers over the subject
5matter of the proposed rule for approval. The agency may not send the statement
6to the legislative reference bureau for publication under sub. (3) until the governor
7issues a written notice of approval of the statement. The individual or body with
8policy-making powers may not approve the statement until at least 10 days after
9publication of the statement under sub. (3). No state employee or official may
10perform any activity in connection with the drafting of a proposed rule to which this
11subsection applies
except for an activity necessary to prepare the statement of the
12scope of the proposed rule until the governor and the individual or body with
13policy-making powers over the subject matter of the proposed rule approves the
14statement.
SB608,2 15Section 2. 227.135 (2m) of the statutes is created to read:
SB608,5,316 227.135 (2m) If the department of natural resources prepares a statement of
17the scope of a proposed rule that was considered at the joint annual spring fish and
18wildlife rule hearing of the department of natural resources and county meeting of
19the Wisconsin conservation congress, that department shall present the statement
20to the natural resources board for approval. The natural resources board may not
21approve the statement until at least 10 days after publication of the statement under
22sub. (3). If the natural resources board does not disapprove the statement within 30
23days after the statement is presented to that board or by the 11th day after
24publication of the statement in the register, whichever is later, the statement is
25considered to be approved. No state employee or official may perform any activity

1in connection with the drafting of a proposed rule to which this subsection applies
2except for an activity necessary to prepare the statement of the scope of the proposed
3rule until the natural resources board approves the statement.
SB608,3 4Section 3. 227.135 (3) of the statutes is amended to read:
SB608,5,125 227.135 (3) If the governor approves a statement of the scope of a proposed rule
6under sub. (2), the agency shall send the statement to the legislative reference
7bureau for publication in the register. If the natural resources board approves a
8statement of the scope of a proposed rule under sub. (2m), the department of natural
9resources shall send the statement to the legislative reference bureau for publication
10in the register.
On the same day that the agency sends the statement to the
11legislative reference bureau, the agency shall send a copy of the statement to the
12secretary of administration.
SB608,4 13Section 4. 227.135 (5) of the statutes is created to read:
SB608,5,1614 227.135 (5) This section does not apply to emergency rules that were
15considered at the joint annual spring fish and wildlife rule hearing of the department
16of natural resources and county meeting of the Wisconsin conservation congress.
SB608,5 17Section 5. 227.137 (2) of the statutes is amended to read:
SB608,5,2018 227.137 (2) An Except as provided in sub. (2m), an agency shall prepare an
19economic impact analysis for a proposed rule before submitting the proposed rule to
20the legislative council staff under s. 227.15.
SB608,6 21Section 6. 227.137 (2m) of the statutes is created to read:
SB608,6,1322 227.137 (2m) After the legislative reference bureau publishes under s. 227.135
23(3) a statement of the scope of a proposed rule that was considered at the joint annual
24spring fish and wildlife rule hearing of the department of natural resources and
25county meeting of the Wisconsin conservation congress, and before that department

1submits the notice of the proposed rule to the legislature for review under s. 227.19
2(2), a municipality, an association that represents a farm, labor, business, or
3professional group, or 5 or more persons who would be directly and uniquely affected
4by the proposed rule may submit a petition to the department of administration
5asking the secretary of administration to direct the department of natural resources
6to prepare an economic impact analysis for the proposed rule. If the secretary of
7administration directs the department of natural resources to prepare the economic
8impact analysis, that department shall prepare the economic impact analysis before
9submitting the notice of the proposed rule to the legislature for review under s.
10227.19 (2). The secretary of administration shall direct the department of natural
11resources to prepare an economic impact analysis for the proposed rule before
12submitting the notice of the proposed rule to the legislature for review under s.
13227.19 (2) if the secretary determines that all of the following apply:
SB608,6,1714 (a) The petition was submitted to the department of administration no later
15than 90 days after publication of the statement of the scope of the proposed rule
16under s. 227.135 (3) or no later than 10 days after publication of the notice for a public
17hearing under s. 227.17, whichever is later.
SB608,6,2218 (b) The proposed rule would cost affected persons $20,000,000 or more during
19each of the first 5 years after the rule's implementation to comply with the rule or the
20proposed rule would adversely affect in a material way the economy, a sector of the
21economy, productivity, competition, jobs, the environment, public health or safety, or
22state, local, or tribal governments or communities.
SB608,7 23Section 7. 227.137 (3) (intro.) of the statutes is amended to read:
SB608,7,1024 227.137 (3) (intro.) An economic impact analysis of a proposed rule prepared
25under sub. (2)
shall contain information on the economic effect of the proposed rule

1on specific businesses, business sectors, public utility ratepayers, local
2governmental units, and the state's economy as a whole. When preparing the
3analysis, the agency shall solicit information and advice from businesses,
4associations representing businesses, local governmental units, and individuals that
5may be affected by the proposed rule. The agency shall prepare the economic impact
6analysis in coordination with local governmental units that may be affected by the
7proposed rule. The agency may request information that is reasonably necessary for
8the preparation of an economic impact analysis from other businesses, associations,
9local governmental units, and individuals and from other agencies. The economic
10impact analysis shall include all of the following:
SB608,8 11Section 8. 227.137 (3m) of the statutes is created to read:
SB608,7,2112 227.137 (3m) An economic impact analysis of a proposed rule prepared under
13sub. (2m) shall contain information on the effect of the proposed rule on specific
14businesses, business sectors, and the state's economy. When preparing the analysis,
15the department of natural resources shall solicit information and advice from the
16Wisconsin Economic Development Corporation and from businesses, associations,
17governmental units, and individuals that may be affected by the proposed rule. The
18department of natural resources may request information that is reasonably
19necessary for the preparation of the economic impact analysis from other state
20agencies and from businesses, associations, governmental units, and individuals.
21The economic impact analysis shall include all of the following:
SB608,7,2322 (a) An analysis and quantification of the problem, including any risks to public
23health or the environment, that the proposed rule is intending to address.
SB608,8,3
1(b) An analysis and quantification of the economic impact of the proposed rule,
2including the costs that are reasonably expected to be incurred by the state,
3businesses, governmental units, and affected individuals.
SB608,8,54 (c) An analysis of the benefits of the proposed rule, including how the rule
5reduces the risks and addresses the problems that the rule is intended to address.
SB608,9 6Section 9. 227.137 (4) of the statutes is amended to read:
SB608,8,197 227.137 (4) On the same day that the agency submits the an economic impact
8analysis prepared under sub. (2) to the legislative council staff under s. 227.15 (1),
9the agency shall also submit that analysis to the department of administration, to
10the governor, and to the chief clerks of each house of the legislature, who shall
11distribute the analysis to the presiding officers of their respective houses, to the
12chairpersons of the appropriate standing committees of their respective houses, as
13designated by those presiding officers, and to the cochairpersons of the joint
14committee for review of administrative rules. If a proposed rule is modified after the
15economic impact analysis is submitted under this subsection so that the economic
16impact of the proposed rule is significantly changed, the agency shall prepare a
17revised economic impact analysis for the proposed rule as modified. A revised
18economic impact analysis shall be prepared and submitted in the same manner as
19an original economic impact analysis is prepared and submitted.
SB608,10 20Section 10. 227.137 (4m) of the statutes is created to read:
SB608,8,2321 227.137 (4m) The department of natural resources shall submit an economic
22impact analysis prepared under sub. (2m) to the legislative council staff under s.
23227.15, to the department of administration, and to the petitioner.
SB608,11 24Section 11. 227.137 (5) of the statutes is renumbered 227.137 (8).
SB608,12
1Section 12. 227.137 (6) (intro.) of the statutes, is renumbered 227.137 (6) (am)
2(intro.) and amended to read:
SB608,9,143 227.137 (6) (am) (intro.) If an economic impact analysis regarding a proposed
4rule
prepared under sub. (2) indicates that a total of $20,000,000 or more in
5implementation and compliance costs are reasonably expected to be incurred by or
6passed along to businesses, local governmental units, and individuals as a result of
7the proposed rule or if an economic impact analysis is prepared under sub. (2m) for
8a proposed rule that was considered at the joint annual spring fish and wildlife rule
9hearing of the department of natural resources and county meeting of the Wisconsin
10conservation congress
, the department of administration shall review the proposed
11rule and issue a report. The agency may not submit a proposed rule to the legislature
12for review under s. 227.19 (2) until the agency receives a copy of the department's
13report and the approval of the secretary of administration. The report shall include
14all of the following findings:
SB608,13 15Section 13. 227.137 (6) (a) of the statutes is renumbered 227.137 (6) (am) 1.
SB608,14 16Section 14. 227.137 (6) (b) of the statutes is renumbered 227.137 (6) (am) 2.
SB608,15 17Section 15. 227.137 (6) (c) of the statutes is renumbered 227.137 (6) (am) 3.
SB608,16 18Section 16. 227.137 (6) (cm) of the statutes is created to read:
SB608,9,2319 227.137 (6) (cm) No person is entitled to judicial review of any action taken by
20the department of administration under this subsection with respect to an economic
21impact analysis prepared under sub. (2m) for a proposed rule that was considered
22at the joint annual spring fish and wildlife rule hearing of the department of natural
23resources and county meeting of the Wisconsin conservation congress.
SB608,17 24Section 17. 227.137 (6) (d) of the statutes is renumbered 227.137 (6) (am) 4.
SB608,18
1Section 18. 227.137 (7) of the statutes is renumbered 227.137 (6) (bm) and
2amended to read:
SB608,10,103 227.137 (6) (bm) Before issuing a report under sub. (6) par. (am), the
4department of administration may return a proposed rule to the agency for further
5consideration and revision with a written explanation of why the proposed rule is
6being returned. If the agency head disagrees with the department's reasons for
7returning the proposed rule, the agency head shall so notify the department in
8writing. The secretary of administration shall approve the proposed rule when the
9agency has adequately addressed the issues raised during the department's review
10of the rule.
SB608,19 11Section 19. 227.14 (2) (a) 6. of the statutes is amended to read:
SB608,10,1512 227.14 (2) (a) 6. Any analysis and supporting documentation that the agency
13used in support of the agency's determination of the rule's effect on small businesses
14under s. 227.114 or that was used when the agency prepared an economic impact
15analysis under s. 227.137 (3) (2) or (2m).
SB608,20 16Section 20. 227.15 (1) of the statutes is amended to read:
SB608,11,317 227.15 (1) Submittal to legislative council staff. Prior to a public hearing
18on a proposed rule or, if no public hearing is required, prior to notice under s. 227.19,
19an agency shall submit the proposed rule to the legislative council staff for review.
20The proposed rule shall be in the form required under s. 227.14 (1), and shall include
21the material required under s. 227.14 (2), (3), and (4), the economic impact analysis
22required under s. 227.137 (2) or (2m), and any revised economic impact analysis
23required under s. 227.137 (4). An agency may not hold a public hearing on a proposed
24rule or give notice under s. 227.19 until after it has received a written report of the
25legislative council staff review of the proposed rule or until after the initial review

1period of 20 working days under sub. (2) (intro.), whichever comes first. An agency
2may give notice of a public hearing prior to receipt of the legislative council staff
3report. This subsection does not apply to rules promulgated under s. 227.24.
SB608,21 4Section 21. 227.17 (3) (em) of the statutes is amended to read:
SB608,11,95 227.17 (3) (em) The economic impact analysis required under s. 227.137 (2),
6any revised economic impact analysis required under s. 227.137 (4), and any report
7prepared by the department of administration under s. 227.137 (6) for that analysis,
8or a summary of that analysis and report and a description of how a copy of the full
9analysis and report may be obtained from the agency at no charge.
SB608,22 10Section 22. 227.185 of the statutes is amended to read:
SB608,11,20 11227.185 Approval by governor. After Except as provided in this section,
12after
a proposed rule is in final draft form, the agency shall submit the proposed rule
13to the governor for approval. The governor, in his or her discretion, may approve or
14reject the proposed rule. If the governor approves a proposed rule, the governor shall
15provide the agency with a written notice of that approval. No proposed rule may be
16submitted to the legislature for review under s. 227.19 (2) unless the governor has
17approved the proposed rule in writing. This section does not apply to a proposed rule
18that was considered at the joint annual spring fish and wildlife rule hearing of the
19department of natural resources and county meeting of the Wisconsin conservation
20congress.
SB608,23 21Section 23. 227.19 (3) (intro.) of the statutes is amended to read:
SB608,12,722 227.19 (3) Form of report. (intro.) The report required under sub. (2) shall be
23in writing and shall include the proposed rule in the form specified in s. 227.14 (1);
24the material specified in s. 227.14 (2), (3), and (4); including any statement,
25suggested changes, or other material submitted to the agency by the small business

1regulatory review board; a copy of any economic impact analysis prepared by the
2agency under s. 227.137 (2) or (2m); a copy of any revised economic impact analysis
3prepared by the agency under s. 227.137 (4); a copy of any report prepared by the
4department of administration under s. 227.137 (6); a copy of any energy impact
5report received from the public service commission under s. 227.117 (2); and a copy
6of any recommendations of the legislative council staff. The report shall also include
7all of the following:
SB608,24 8Section 24. 227.24 (1) (e) 1d. of the statutes is amended to read:
SB608,12,209 227.24 (1) (e) 1d. Prepare Except as provided in s. 227.135 (5), prepare a
10statement of the scope of the proposed emergency rule as provided in s. 227.135 (1),
11obtain approval of the statement as provided in s. 227.135 (2), and send the
12statement to the legislative reference bureau for publication in the register as
13provided in s. 227.135 (3). If the agency changes the scope of a proposed emergency
14rule as described in s. 227.135 (4), the agency shall prepare and obtain approval of
15a revised statement of the scope of the proposed emergency rule as provided in s.
16227.135 (4). No state employee or official may perform any activity in connection
17with the drafting of a proposed emergency rule except for an activity necessary to
18prepare the statement of the scope of the proposed emergency rule until the governor
19and the individual or body with policy-making powers over the subject matter of the
20proposed emergency rule approves the statement.
SB608,25 21Section 25. 227.24 (1) (e) 1g. of the statutes is amended to read:
SB608,13,622 227.24 (1) (e) 1g. Submit Except as provided in this subdivision, submit the
23proposed emergency rule in final draft form to the governor for approval. The
24governor, in his or her discretion, may approve or reject the proposed emergency rule.
25If the governor approves a proposed emergency rule, the governor shall provide the

1agency with a written notice of that approval. An agency may not file an emergency
2rule with the legislative reference bureau as provided in s. 227.20 and an emergency
3rule may not be published until the governor approves the emergency rule in writing.
4This subdivision does not apply to a proposed emergency rule that was considered
5at the joint annual spring fish and wildlife rule hearing of the department of natural
6resources and county meeting of the Wisconsin conservation congress.
SB608,26 7Section 26. Initial applicability.
SB608,13,11 8(1) Gubernatorial approval of rules. The treatment of sections 227.135 (2),
9(2m), (3), and (5), 227.185, and 227.24 (1) (e) 1d. and 1g. of the statutes first applies
10to a proposed administrative rule whose statement of scope is published in the
11Wisconsin Administrative Register on the effective date of this subsection.
SB608,13,16 12(2) Economic impact reports. The treatment of sections 227.137 (2), (2m), (3)
13(intro.), (3m), (4), (4m), (5), and (6) (intro.), (a), (b), (c), (cm), (d), and (7), 227.14 (2)
14(a) 6., 227.15 (1), 227.17 (3) (em), and 227.19 (3) (intro.) of the statutes first applies
15to a notice of a proposed administrative rule submitted to the legislature under
16section 227.19 (2) of the statutes on the effective date of this subsection.
SB608,13,1717 (End)
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