AB251: Bill Text

AB251,8,2 73.16 (2) (b) The department may retroactively apply any rule change that is related to implementing a legislative act or a final and conclusive decision of the tax appeals commission or the courts to take effect no earlier than the act's effective date or the date on which the decision became final and conclusive, unless otherwise prescribed by the legislature, tax appeals commission, or court, and only if the department submits the rule's scope statement to the governor for approval under s. 227.135 (2) no later than 18 months after the latter of the legislative act's publication date, effective date, or initial applicability date, or the date on which the decision becomes final and conclusive. A retroactive application of a rule change not described under this paragraph shall be subject to approval under s. 227.185 (1).

AB251,8 Section 8. 73.17 of the statutes is created to read:

AB251,8,5 73.17 Duties of secretary; rulemaking. (1) In this section, "agency" has the meaning given in s. 227.01 (1).

AB251,8,6 (2) The secretary of revenue shall do all of the following:

AB251,8,9 (a) Provide training to agencies on appropriate data collection and methods of analysis for purposes of preparing economic impact analyses of proposed rules under s. 227.137 (3).

AB251,8,14 (b) Attend hearings of the joint committee for review of administrative rules and present testimony on proposed rules that the secretary determines will have an economic impact on specific businesses, business sectors, public utility ratepayers, local governmental units, regulated individuals and entities, or the state's economy as a whole.

AB251,8,16 (c) Review and approve economic impact analyses as provided under s. 227.137 (3m).

AB251,8,18 (d) Request independent economic impact analyses under s. 227.137 (4m) when appropriate.

AB251,9 Section 9. 227.10 (1m) (b) of the statutes is created to read:

AB251,8,22 227.10 (1m) (b) Prohibit the agency from implementing or enforcing the statement of policy or interpretation until the statement or interpretation is promulgated as a rule or until any prohibition under this subsection is rescinded.

AB251,10 Section 10. 227.10 (2) of the statutes is renumbered 227.11 (1m).

AB251,11 Section 11. 227.11 (title) of the statutes is amended to read:

AB251,9,2 227.11 (title) Extent to which chapter confers Agency rule-making authority.

AB251,12 Section 12. 227.11 (2) (e) of the statutes is renumbered 227.22 (4).

AB251,13 Section 13. 227.114 (6) of the statutes is amended to read:

AB251,9,15 227.114 (6) When an agency, under s. 227.20 (1), files with the legislative reference bureau a rule that is subject to this section, the An agency shall include with the a rule filed with the legislative reference bureau under s. 227.20 (1) a summary of the any analysis prepared under s. 227.19 (3) (e) if required and a summary of the comments of the legislative standing committees, if any. If, under s. 227.19 (3m), the rule does not require the analysis under s. 227.19 (3) (e), the agency shall include with the rule a the small business regulatory review board's statement of the reason for the small business regulatory review board's its determination that the rule will not have a significant an economic impact on a substantial number of small businesses. The legislative reference bureau shall publish the any summaries or the statement in the register with the rule.

AB251,14 Section 14. 227.12 (4) of the statutes is amended to read:

AB251,9,25 227.12 (4) If a petition to the department of revenue establishes that the department has established a standard by which it is construing a state tax statute, but has not promulgated a rule to adopt the standard or published the standard in a manner that is available to the public, the department shall, as provided under s. 227.135, submit a statement of the scope of the proposed rule to the governor office of business development no later than 90 days after receiving the petition. No later than 270 days after the statement is approved by the governor, the department shall submit the proposed rule in final draft form to the office of business development for review by the office of business development and approval by the governor for the governor's approval, as provided under s. 227.185 (1). At the department's request, the governor office of business development may, at any time prior to the expiration of any deadline specified in this subsection, extend the time for submitting the statement or proposed rule in draft form for any period not to exceed 60 days. The governor may grant more than one extension under this subsection, but the total period for all such extensions may not exceed 120 days. The office may only grant one extension under this subsection. The rule need not adhere to the standard established by the department, but shall address the same circumstances as the standard addresses. If the department fails to comply with this subsection, any of the petitioners may commence an action in circuit court to compel the department's compliance. If an action is commenced under this subsection, the court may compel the department to provide information to the court related to the degree to which the department is enforcing the standard, except that the information provided by the department shall not disclose the identity of any person who is not a party to the action.

AB251,15 Section 15. 227.13 of the statutes is amended to read:

AB251,10,23 227.13 Advisory committees and informal consultations. An agency may shall, when possible, use informal conferences and consultations to obtain the viewpoint and advice of interested persons, the office of business development, or members of the small business regulatory review board with respect to contemplated rule making. An agency also may appoint a committee of experts, interested persons, or representatives of the public to advise it with respect to any contemplated rule making. The Such a committee shall have advisory powers only.

AB251,16 Section 16. 227.135 (1) (intro.) of the statutes is amended to read:

AB251,11,4 227.135 (1) (intro.) An agency shall prepare a statement of the scope of any rule that it plans to promulgate, which shall be approved by the individual or body with policy-making powers over the subject matter of the proposed rule. The statement shall include all of the following:

AB251,17 Section 17. 227.135 (2) of the statutes is amended to read:

AB251,11,23 227.135 (2) An agency that has prepared a statement of the scope of the proposed rule shall present the statement to the governor and to the individual or body with policy-making powers over the subject matter of the proposed rule for approval office of business development. The office of business development shall make a determination as to the agency's authority to promulgate the rule as proposed in the statement of scope and shall report the statement of scope and its determination to the governor who, in his or her discretion, may approve or reject the statement of scope. The agency may not send the statement to the legislative reference bureau for publication under sub. (3) until the governor issues a written notice of approval of the statement. The individual or body with policy-making powers may not approve the statement until at least 10 days after publication of the statement under sub. (3). No Except for an activity required to draft a corresponding emergency rule under s. 227.24, no state employee or official may perform any activity in connection with the drafting of a proposed rule except for an activity necessary to prepare the statement of the scope of the proposed rule until the governor and the individual or body with policy-making powers over the subject matter of the proposed rule approve approves the statement and the preliminary public hearing and comment period required under s. 227.136 are both concluded.

AB251,18 Section 18. 227.136 of the statutes is created to read:

AB251,12,10 227.136 Preliminary public hearing and comment period. (1) Following approval of a statement of scope by the governor under s. 227.135 (2), other than a revised statement of scope prepared under s. 227.135 (4), the agency shall submit to the legislative reference bureau, in a format approved by the legislative reference bureau, a notice of a preliminary public hearing and comment period to allow for public comment and feedback on the statement of scope. The agency may also take any other action it considers necessary to provide notice of the preliminary public hearing and comment period to other interested persons. The notice shall be approved by the individual or body with policy-making powers over the subject matter of the proposed rule and shall include all of the following:

AB251,12,11 (a) A statement of the date, time, and place of the preliminary public hearing.

AB251,12,13 (b) The place where comments on the statement of scope should be submitted and the deadline for submitting those comments

AB251,12,17 (2) The agency shall hold the preliminary public hearing and comment period in accordance with the notice required under sub. (1), but the agency may not hold the hearing sooner than the 3rd day after after publication of the notice in the register. The agency shall hold the hearing in accordance with s. 227.18.

AB251,12,20 (3) Failure of any person to receive notice of a preliminary public hearing as provided in this section is not grounds for invalidating any resulting rule if notice of the hearing was published in the register in accordance with s. 35.93 (2) (b) 3. bm.

AB251,19 Section 19. 227.137 (3) (intro.), (a) and (b) of the statutes are amended to read:

AB251,13,9 227.137 (3) (intro.) An economic impact analysis of a proposed rule shall contain information on the economic effect of the proposed rule on specific businesses, business sectors, public utility ratepayers, local governmental units, regulated individuals and entities, and the state's economy as a whole. When The agency or person preparing the analysis, the agency shall solicit information and advice from businesses, associations representing businesses, local governmental units, and individuals that may be affected by the proposed rule. The agency or person shall prepare the economic impact analysis in coordination with local governmental units that may be affected by the proposed rule. The agency or person may also request information that is reasonably necessary for the preparation of an economic impact analysis from other businesses, associations, local governmental units, and individuals and from other agencies. The economic impact analysis shall include all of the following:

AB251,13,16 (a) An analysis and quantification of the policy problem that the proposed rule is intending to address, including comparisons with the approaches used by the federal government and by Illinois, Iowa, Michigan, and Minnesota to address that policy problem and, if. If the approach chosen by the agency to address that policy problem is different from those approaches, an economic impact analysis prepared by an agency shall include a statement as to why the agency chose a different approach.

AB251,13,25 (b) An analysis and detailed quantification of the economic impact of the proposed rule, including the implementation and compliance costs that are reasonably expected to be incurred by or passed along to the businesses, local governmental units, and individuals that may be affected by the proposed rule, specifically including a determination, for purposes of the requirement under s. 227.139, as to whether $10 million or more in implementation and compliance costs are reasonably expected to be incurred by or passed along to businesses, local governmental units, and individuals over any 2-year period as a result of the proposed rule.

AB251,20 Section 20. 227.137 (3m) of the statutes is created to read:

AB251,14,20 227.137 (3m) The secretary of revenue shall review each agency's initial economic impact analysis prepared under sub. (2) and determine whether the data used by the agency in preparing the analysis are appropriate for determining the economic impact of the proposed rule and whether the analysis accurately gauges the economic impact of the proposed rule. If the secretary determines that the agency's analysis does not accurately gauge the economic impact of the proposed rule, the secretary shall recommend any modifications to the economic impact analysis that the secretary considers necessary and direct the agency to prepare a revised economic impact analysis as provided in sub. (4). An agency may not submit a proposed rule for approval under s. 227.185 unless the secretary of revenue has approved the agency's initial economic impact analysis or, if the agency prepares a revised economic impact analysis as required under this subsection, unless the secretary of revenue has approved the agency's revised economic impact analysis. The secretary of revenue shall similarly review and approve any revised economic impact analysis submitted under s. 227.139 (1) (b). The secretary of revenue may approve an economic impact analysis only upon determining that the economic impact analysis accurately gauges the economic impact of the proposed rule. The secretary of revenue shall, upon approving an economic impact analysis, submit a statement indicating that approval to the agency.

AB251,21 Section 21. 227.137 (4) of the statutes is amended to read:

AB251,15,9 227.137 (4) On the same day that the agency submits the economic impact analysis to the legislative council staff under s. 227.15 (1), the agency shall also submit that analysis to the department of administration, to the governor, the secretary of revenue, and to the chief clerks of each house of the legislature, who shall distribute the analysis to the presiding officers of their respective houses, to the chairpersons of the appropriate standing committees of their respective houses, as designated by those presiding officers, and to the cochairpersons of the joint committee for review of administrative rules. If a proposed rule is modified after the economic impact analysis is submitted under this subsection so that the economic impact of the proposed rule is significantly changed, the agency shall prepare a revised economic impact analysis for the proposed rule as modified. A revised economic impact analysis shall be prepared and submitted in the same manner as an original economic impact analysis is prepared and submitted.

AB251,22 Section 22. 227.137 (4m) of the statutes is created to read:

AB251,15,15 227.137 (4m) (a) After an agency submits an economic impact analysis for a proposed rule to the legislature under sub. (4), but before the agency submits the proposed rule for approval under s. 227.185 (1), the secretary of revenue or either cochairperson of the joint committee for review of administrative rules may request an independent economic impact analysis to be prepared for the proposed rule.

AB251,15,24 (b) 1. If the secretary of revenue requests an independent economic impact analysis under par. (a), the secretary shall submit the request to the department of administration and so notify the agency proposing the proposed rule. The department of administration shall contract with a person that is not an agency to prepare the independent economic impact analysis. If a cochairperson of the joint committee for review of administrative rules requests an independent economic impact analysis under par. (a), the cochairperson shall notify the agency proposing the proposed rule and shall contract with a person that is not an agency to prepare the independent economic impact analysis.

AB251,16,9 2. Upon completion of an independent economic impact analysis requested by the secretary of revenue, the person preparing the analysis may submit a request to the department of administration for reimbursement of its actual and necessary costs of completing the analysis, and the department of administration shall assess the agency that is proposing the proposed rule for those costs. The department of administration shall credit all moneys received under this subdivision to the appropriation account under s. 20.505 (1) (ks) and shall reimburse a person who submits a request for reimbursement under this subdivision from the appropriation account under s. 20.505 (1) (ks).

AB251,16,15 3. Upon completion of an independent economic impact analysis requested by a cochairperson of the joint committee for review of adminstrative rules, the person preparing the analysis may submit a request to the committee for reimbursement of its actual and necessary costs of completing the analysis. The committee shall reimburse a person who submits a request for reimbursement under this subdivision in equal parts from the appropriation accounts under s. 20.765 (1) (a) and (b).

AB251,16,17 (c) A person preparing an independent economic impact analysis under par. (b) shall do all of the following:

AB251,16,18 1. Include in the analysis the information that is required under sub. (3).

AB251,16,25 2. Upon completion of the analysis, submit the analysis to the agency, to the department of administration, to the secretary of revenue, to the office of business development, to the governor, and to the chief clerks of each house of the legislature, who shall distribute the analysis to the presiding officers of their respective houses, to the chairpersons of the appropriate standing committees of their respective houses, as designated by those presiding officers, and to the cochairpersons of the joint committee for review of administrative rules.

AB251,17,2 3. Complete the independent economic impact analysis within 60 days after contracting to prepare the analysis.

AB251,17,5 (d) When an independent economic impact analysis is requested under par. (a), the agency may not submit the proposed rule for approval under s. 227.185 (1) until the agency receives the completed independent economic impact analysis.

AB251,23 Section 23 . 227.137 (6) and (7) of the statutes are repealed.

AB251,24 Section 24. 227.139 of the statutes is created to read:

AB251,17,16 227.139 Passage of bill required for certain rules. (1) If an economic impact analysis prepared under s. 227.137 (2), a revised economic impact analysis prepared under s. 227.137 (4), or an independent economic impact analysis prepared under s. 227.137 (4m) or 227.19 (5) (b) 3. indicates that $10 million or more in implementation and compliance costs are reasonably expected to be incurred by or passed along to businesses, local governmental units, and individuals over any 2-year period as a result of the proposed rule, the agency proposing the rule shall stop work on the proposed rule and take no further action regarding the proposed rule, except that the agency shall do one of the following:

AB251,17,21 (a) Submit a request to the joint committee for review of administrative rules for the committee to introduce a bill authorizing promulgation of the proposed rule. The committee may, in its discretion, introduce such a bill authorizing promulgation of the proposed rule. The agency may resume the rule-making process as provided in this subchapter upon enactment of a bill introduced under this paragraph.

AB251,18,7 (b) Modify the proposed rule, if the modification is germane to the subject matter of the proposed rule, to address the implementation and compliance costs of the proposed rule. If the agency modifies a proposed rule under this paragraph, the agency shall prepare a revised economic impact analysis under s. 227.137 (4) and submit the revised economic impact analysis to the secretary of revenue for approval under s. 227.137 (3m). If the revised economic impact analysis, as approved by the secretary of revenue, indicates that $10 million or more in implementation and compliance costs are not reasonably expected to be incurred by or passed along to businesses, local governmental units, and individuals over any 2-year period as a result of the proposed rule, the agency may continue with the rule-making process as provided in this subchapter.

AB251,18,8 (c) Withdraw the proposed rule as provided in s. 227.14 (6).

AB251,18,9 (2) This section does not apply to rules promulgated under s. 227.24.

AB251,25 Section 25. 227.14 (2) (a) 3m. of the statutes is created to read:

AB251,18,15 227.14 (2) (a) 3m. A summary of any public comments and feedback on the statement of scope of the proposed rule that the agency received at the preliminary public hearing and comment period under s. 227.136 and a description of how and to what extent the agency took those comments and that feedback into account in drafting the proposed rule.

AB251,26 Section 26. 227.14 (2g) (title) of the statutes is amended to read:

AB251,18,18 227.14 (2g) (title) Review by the office of business development and small business regulatory review board.

AB251,27 Section 27. 227.14 (2g) (intro.) of the statutes is renumbered 227.14 (2g) (am) and amended to read:

AB251,19,8 227.14 (2g) (am) On the same day that an agency submits a proposed rule to the legislative council staff under s. 227.15 a proposed rule that may have an economic impact on small businesses, the agency shall submit the proposed rule, the analysis required under sub. (2), and a description of its actions taken to comply with s. 227.114 (2) and (3) to the small business regulatory review board. The office of business development, which shall make a determination as to whether the proposed rule may have an economic impact on small businesses, as defined in s. 227.114 (1). The office shall, when appropriate consult with individual members of the small business regulatory review board in making that determination and shall report its determination to the agency. If the office of business development determines that the proposed rule may have an economic impact on small businesses, it shall submit the proposed rule to the small business regulatory review board for an assessment of the extent of the economic impact.

AB251,20,4 (bm) In making an assessment required under par. (am), the small business regulatory review board may use cost-benefit analysis to determine the fiscal effect of the rule on small businesses and shall determine whether the proposed rule will have a significant an economic impact on a substantial number of small businesses and whether the agency has complied with subs. (2) and (2m) and s. 227.114 (2) and (3). Except as provided in subs. (1m) and (1s), each proposed rule shall include provisions detailing how the rule will be enforced. If the board determines that the rule does not include an enforcement provision or that the agency failed to comply with sub. (2) or (2m) or s. 227.114 (2) or (3), the board shall notify the agency of that determination and ask the agency to comply with any of those requirements. If the board determines that the proposed rule will not have a significant an economic impact on a substantial number of small businesses, the board shall submit to the agency a statement to that effect to the agency that sets forth, which shall include the reason for the board's decision determination. If the board determines that the proposed rule will have a significant an economic impact on a substantial number of small businesses, the board may submit to the agency suggested changes in the proposed rule to minimize the any negative economic impact of the proposed rule, or may recommend the withdrawal of the proposed rule under sub. (6). In addition, the board may submit other suggested changes in the proposed rule to the agency, including proposals to reduce the use of cross-references in the rule. The submission to the agency may also include a request that the agency do any of the following:

AB251,20,11 (d) The small business regulatory review board shall send a report of any suggested changes and of any notice of failure to include enforcement provisions or to comply with sub. (2) or (2m) or s. 227.114 (2) or (3) a copy of any submission under this subsection to the legislative reference bureau for publication in the register, in an electronic format approved by the legislative reference bureau, and to the legislative council staff. The notification to the agency may include a request that the agency do any of the following:

AB251,28 Section 28. 227.14 (2g) (a) and (b) of the statutes are renumbered 227.14 (2g) (bm) 1. and 2.

AB251,29 Section 29. 227.14 (2g) (c) of the statutes is created to read:

AB251,20,22 227.14 (2g) (c) The small business regulatory review board shall make a submission to an agency under this subsection within 45 days after receipt of a proposed rule from the office of business development, except that the board and the agency may extend that period by mutual agreement. The agency may not submit the proposed rule for approval under s. 227.185 (1) until the agency receives the board's submission or until the expiration of that period, whichever occurs first. If, upon the expiration of that period, the agency has not received any submission from the board, the agency is not required to comply with s. 227.19 (3) (e).

AB251,30 Section 30. 227.14 (2m) of the statutes is amended to read:

AB251,21,6 227.14 (2m) Quality of agency data and reduction of cross references. Each agency shall, in cooperation with the department of administration, the office of business development, and the secretary of revenue, ensure the accuracy, integrity, objectivity, and consistency of the data that is used when preparing a proposed rule and when completing an analysis of the proposed rule under sub. (2). Each agency shall reduce the amount of cross-references to the statutes in proposed and final rules. A person affected by a proposed rule may submit comments to the agency regarding the accuracy, integrity, or consistency of that data.

AB251,31 Section 31. 227.14 (4m) of the statutes is amended to read:

AB251,22,2 227.14 (4m) Notice of submittal to legislative council staff. On the same day that an agency submits a proposed rule to the legislative council staff under s. 227.15, the agency shall prepare a written notice of the agency's submittal to the legislative council staff. The notice shall include a statement of the date on which the proposed rule has been submitted to the legislative council staff for review, of the subject matter of the proposed rule, and of whether a public hearing on the proposed rule is required under s. 227.16, and shall identify the organizational unit within the agency that is primarily responsible for the promulgation of the rule. The notice shall also include a statement containing the identifying number of the statement of scope for the proposed rule assigned under s. 227.135 (3), and the date of publication and issue number of the register in which the statement of scope is published, and the date of approval of the statement of scope by the individual or body with policy-making powers over the subject matter of the proposed rule under s. 227.135 (2). The notice shall be approved by the individual or body with policy-making powers over the subject matter of the proposed rule. The agency shall send an electronic copy of the notice to the legislative reference bureau, in a format approved by the legislative reference bureau, for publication in the register. On the same day that the agency sends the notice to the legislative reference bureau, the agency shall send a copy of the notice to the secretary of administration.

AB251,32 Section 32. 227.15 (1) of the statutes is amended to read:

AB251,22,16 227.15 (1) Submittal to legislative council staff. Prior to a public hearing on a proposed rule required under s. 227.16 or, if no such public hearing is required, prior to notice under s. 227.19, an agency shall submit the proposed rule to the legislative council staff for review. The proposed rule shall be in the form required under s. 227.14 (1), and shall include the material required under s. 227.14 (2), (3), and (4), the economic impact analysis required under s. 227.137 (2), and any revised economic impact analysis required under s. 227.137 (4). An agency may not hold a public hearing on a proposed rule or give notice under s. 227.19 until after it has received a written report of the legislative council staff review of the proposed rule or until after the initial review period of 20 working days under sub. (2) (intro.), whichever comes first. An agency may give notice of a public hearing prior to receipt of the legislative council staff report. This subsection does not apply to rules promulgated under s. 227.24.

AB251,33 Section 33. 227.15 (1m) (intro.) of the statutes is amended to read:

AB251,23,2 227.15 (1m) Internet access to proposed rule. (intro.) The legislative council staff shall create and maintain an Internet site that includes a copy of or link to each proposed rule received under sub. (1) in a format that allows searching using keywords. Each agency shall provide the legislative council staff with the proposed rules and other information needed to comply with this subsection in the format required by the legislative council staff. The Internet site shall identify or provide a link to a site that identifies proposed rules affecting small businesses, as defined in s. 227.114 (1). The Internet site shall also include or provide a link to all of the following:

AB251,34 Section 34. 227.15 (1m) (bm) of the statutes is amended to read:

AB251,23,6 227.15 (1m) (bm) The economic impact analysis required under s. 227.137 (2) and, any revised economic impact analysis required under s. 227.137 (4), and any independent economic impact analysis prepared under s. 227.137 (4m).

AB251,35 Section 35. 227.15 (1m) (c) of the statutes is amended to read:

AB251,23,9 227.15 (1m) (c) Any report submitted submission to the legislative council staff under s. 227.14 (2g).

AB251,36 Section 36. 227.15 (4) of the statutes is amended to read:

AB251,23,19 227.15 (4) Notice of changes in rule-making authority. Whenever the rule-making authority of an agency is eliminated or significantly changed by the repeal, amendment, or creation of a statute, by the interpretive decision of a court of competent jurisdiction or for any other reason, the legislative council staff shall notify the joint committee for review of administrative rules and, the appropriate committees of each house of the legislature as determined by the presiding officer of each house, and the office of business development. This subsection applies whether or not the rules of the agency are under review by the legislative council staff at the time of the change in rule-making authority.

AB251,37 Section 37. 227.16 (1) of the statutes is amended to read:

AB251,23,24 227.16 (1) Except as provided under sub. (2) In addition to the preliminary public hearing and comment period required under s. 227.136, all rule making by an agency shall be preceded by notice and public hearing as provided in ss. 227.17 and 227.18, except as provided in sub. (2).

AB251,38 Section 38. 227.16 (2) (d) of the statutes is amended to read:

AB251,24,3 227.16 (2) (d) The proposed rule is being promulgated at the direction of the joint committee for review of administrative rules or the office of business development under s. 227.26 (2) (b) 227.10 (1m).

AB251,39 Section 39. 227.16 (6) of the statutes is renumbered 227.136 (4) and amended to read:

AB251,24,11 227.136 (4) For the purpose of soliciting public comment, an agency may, in addition to the preliminary public hearing and comment period required under this section, hold a hearing on the general subject matter of possible or anticipated rules before preparing a proposed rule in draft form. A hearing held under this subsection does not satisfy the requirement of sub. under s. 227.16 (1) with respect to the promulgation of a specific proposed rule.

AB251,40 Section 40. 227.17 (1) (intro.) of the statutes is amended to read:

AB251,24,14 227.17 (1) (intro.) If a hearing is required under s. 227.16, the agency shall do all of the following:

AB251,41 Section 41. 227.17 (3) (eg) of the statutes is created to read: