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STATE OF WISCONSIN
DEPARTMENT OF MILITARY AFFAIRS
PROPOSED ORDER ADOPTING RULE
  The Wisconsin Department of Military Affairs proposes to create Ch. DMA 3, relating to reduction or waiver of penalties for voluntary self-disclosure by a small business of actual or potential violations of rules or guidelines, and affecting small businesses.
Analysis Prepared by the Department of Military Affairs
1. Statutes Interpreted:
§ 227.04 (2) (b) and § 895.59 Stats.
2. Statutory Authority:
§ 227.04 (2) (b) and § 895.59 (2) Stats.
3. Explanation of Agency Authority:
Section 227.04 (2) (b), Stats., provides that each state agency shall “establish by rule, reduced fines and alternative enforcement mechanisms for minor violations of administrative rules made by small businesses” and requires that the rule include a definition of “minor violation.” Section 895.59 (2), Stats., provides that “each state agency shall promulgate a rule that requires the agency to disclose in advance the discretion that the agency will follow in the enforcement of rules and guidelines against a small business” and provide notice of the circumstances in which discretion will not be allowed.
4. Related Statutes or Rules:
The Department of Military Affairs has no related rules and there are no related statutes.
5. Plain Language Analysis:
DMA proposes to create Ch. DMA 3 to comply with the requirements of §§ 227.04 and 895.59, Stats.
This rule does all the following:
- Creates a definition of “minor violation” for certain violations of department rules by small businesses.
- Provides that the department may exercise discretion to forego formal sanctions or to seek reduced sanctions when a small business violates department rules.
- Outlines the circumstances where the agency will not allow discretion, including those circumstances identified in § 895.59, Stats.
6. Summary of, and Comparison with, Existing or Proposed Federal Regulations:
There appear to be no proposed or existing federal regulations that are intended to address the activities to be regulated by this proposed rule.
7. If Held, Summary of Comments Received During Preliminary Comment Period and at Public Hearing on the Statement of Scope:
No such hearing was held.
8. Comparison with Similar Rules in Adjacent States:
Illinois:
There appear to be no rules in Illinois that are like the proposed rule.
Iowa:
There appear to be no rules in Iowa that are like the proposed rule.
Michigan:
There appear to be no rules in Michigan that are like the proposed rule.
Minnesota:
There appear to be no rules in Minnesota that are like the proposed rule.
9. Summary of Factual Data and Analytical Methodologies Used and How Any Related Findings Support the Regulatory Approach Chosen:
The Department reviewed statutes that authorize enforcement to determine whether discretionary enforcement could be used and the extent of that discretion.
10. Analysis and Supporting Documents Used to Determine the Effect on Small Business or in Preparation of an Economic Impact Report:
The rule will have no negative impact on small businesses, financial or otherwise and in fact may financially benefit some small businesses.
This rule will have a slight economic impact on the state. The state will lose some money if fees or fines are not collected, or lesser fees are collected.
11. Effect on Small Business:
This rule will not increase any costs for businesses. The rule may produce an economic benefit for small businesses that commit minor violations of DMA regulations when discretion is exercised to forego formal sanctions or to seek reduced sanctions.
12. Agency Contact Person:
Meg Vergeront
Department of Military Affairs
2400 Wright Street, Suite 103
Madison, WI 53708
General Counsel
608-242-3072
13. Place where comments are to be submitted and deadline for submission:
A public hearing will be held on _____ at _____. Comments may be submitted to the agency contact person listed above or to the Wisconsin Administrative Rules Website at www.adminrules.wisconsin.gov until the day before the hearing.
RULE TEXT
SECTION 1. Chapter DMA 3 is created to read:
Chapter DMA 3
DISCRETIONARY ENFORCEMENT
OF RULES AND GUIDELINES AGAINST SMALL BUSINESSES
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