Amendment SSA1-SB541

SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 541

January 24, 2020 - Offered by Senator Kapenga.

SB541-SSA1,1,2 An Act to create 13.0963 of the statutes; relating to: reports on bills requiring occupational credentials.

Analysis by the Legislative Reference Bureau

This bill requires the Legislative Audit Bureau to submit a report to the legislature when a bill is introduced that requires a new occupational credential. LAB must include in the report all of the following: an evaluation of whether unregulated practice of the profession, occupation, or field recognizably harms or endangers the health, safety, or welfare of the public; the specific identification of any harm or endangerment including any credible evidence and the degree to which the harm or endangerment is remote or speculative; an analysis made following the procedure under the bill and any recommendations of the least restrictive alternatives to manage or mitigate the harm to the public with the fewest negative effects; an estimate of the number of individuals, businesses, or organizations that would be affected by the requirements in the proposal or bill; an evaluation of the negative effects of the proposal or bill on the public, the occupation, or any other occupation or business; and the estimate of the total additional financial burden that would be imposed on an individual as a result of the credential requirement.

A bill that creates a new occupational credential requires a report to be completed by LAB and that requirement is noted on the bill's jacket. Once the bill is introduced, the Legislative Reference Bureau submits a copy of the bill to LAB for completion of the report. A legislator may direct the LRB to submit a copy of a legislative proposal to the LAB before introduction. No later than 270 days after the introduction of the bill, the LAB must submit the report to the chief clerk of the house of the legislature in which the bill is introduced. The chief clerk must ensure that the LAB's report is printed as an appendix to the bill, distributed in the same manner as amendments, and distributed and made available to the public at the times specified in the bill. The LAB and the legislature must publish the LAB's report on their Internet sites. Under the bill, a bill that requires the LAB's report may not receive a hearing or be voted on by either house or a standing committee before the report is distributed. This procedure is similar to other requirements for reports on introduced bills under current law such as the requirement that a social and financial impact report be completed by the Office of the Commissioner of Insurance for any bill that contains a health insurance mandate.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB541-SSA1,1 Section 1 . 13.0963 of the statutes is created to read:

SB541-SSA1,2,3 13.0963 Review of bills creating occupational or business credentials. (1) Definitions. In this section:

SB541-SSA1,2,4 (a) “Agency” has the meaning given in s. 13.172 (1).

SB541-SSA1,2,9 (b) “Occupational credential” means any license, permit, certificate, approval, registration, charter, or similar form of permission that is nontransferable, is granted by an agency to an individual that meets any personal qualifications established by law, and is required by law in order to engage in a particular profession or occupation.

SB541-SSA1,3,2 (2) Report on bills creating occupational licenses. (a) A bill that creates a new occupational credential requires a report under this section and shall have that report requirement noted on its jacket when the jacket is prepared. When a bill that requires a report under this section is introduced, the legislative reference bureau shall submit a copy of the bill to the legislative audit bureau. A legislator may direct the legislative reference bureau to submit a copy of a legislative proposal to the legislative audit bureau before the proposal is introduced.

SB541-SSA1,3,6 (b) No later than 270 days after the bill is introduced, the legislative audit bureau shall submit the report as described under sub. (3) to the chief clerk of the house of the legislature in which the bill is introduced. After receiving the report from the legislative audit bureau, the chief clerk shall ensure all of the following:

SB541-SSA1,3,8 1. The report prepared under this section is printed as an appendix to the applicable bill and is distributed in the same manner as amendments.

SB541-SSA1,3,16 2. The report is distributed, and is made available to the public, before any vote is taken on the bill by either house of the legislature if the bill is not referred to a standing committee, or before any public hearing is held before any standing committee or, if no public hearing is held, before any vote is taken by the committee. No bill requiring a report under this section may receive a hearing or be voted on by either house or a standing committee before the report is distributed under this subdivision. The legislative audit bureau and the legislature shall publish the report on their Internet sites.

SB541-SSA1,3,18 (3) Preparation of report. (a) The legislative audit bureau shall include all of the following in a report required under sub. (2):

SB541-SSA1,3,21 1. An evaluation of whether the unregulated practice of the profession, occupation, or field recognizably harms or endangers the health, safety, or welfare of the public.

SB541-SSA1,3,24 2. A specific identification of any harm or endangerment described under subd. 1., any credible evidence of the harm or endangerment to consumers, and the degree to which the harm or endangerment is remote or speculative.

SB541-SSA1,4,4 3. An analysis completed in accordance with the procedure described in sub. (4) and any recommendations of the least restrictive alternatives to manage or mitigate the harm or endangerment to the public that have the least detrimental negative effects.

SB541-SSA1,4,6 4. An estimate of the number of individuals, businesses, or organizations that would be affected by the requirements in the proposal or bill.

SB541-SSA1,4,11 5. An evaluation of whether the proposal or bill may have a negative effect on the public, the occupation for which the credential is being issued, or any other occupation or business. If the proposal or bill is expected to have a negative effect, the report shall include a description of the nature and magnitude of any negative effect.

SB541-SSA1,4,16 6. An estimate of the total additional financial burden that will be imposed on an individual as a result of the credential requirement, including education or training costs, examination fees, private credential fees, credential fees imposed by the agency, and other costs that the individual will have to incur in order to obtain the credential.

SB541-SSA1,5,2 (b) The legislative audit bureau shall request information from any individual, business, or organization that the legislative audit bureau considers likely to be affected by the proposed credential requirement to assist in the completion of the report under this subsection. The legislative audit bureau may request a statement or analysis from the agency that would be required to administer the occupational credential. The legislative audit bureau may include in its report under this subsection any statement or analysis from the agency that would be required to administer the occupational credential. Individuals, businesses, organizations, and agencies shall comply with requests by the legislative audit bureau for information that is reasonably necessary for the legislative audit bureau to prepare the report.

SB541-SSA1,5,4 (4) Analysis procedure. All of the following apply to the preparation of the analysis that is required to be included in the report under sub. (3) (a) 3.:

SB541-SSA1,5,6 (a) If the legislative audit bureau determines that any of the following apply, it shall recommend that the legislature take no action on the proposal or bill:

SB541-SSA1,5,9 1. After making the evaluation under sub. (3) (a) and (b), there is insufficient credible evidence of harm or endangerment to the public or any harm or endangerment identified is remote or speculative.

SB541-SSA1,5,15 2. Any harm or endangerment identified in sub. (3) (a) 2. is manageable or may be eliminated by market competition and any laws or rules in effect on the date the legislative audit bureau begins its analysis. The legislative audit bureau shall evaluate as an aspect of market competition under this subdivision whether any private organization issues a credential, accreditation, or other recognition of proficiency for the occupation or profession.

SB541-SSA1,5,22 (b) If harm or endangerment identified in sub. (3) (a) 2. is present as demonstrated by credible evidence and cannot be managed or mitigated by market competition or any laws or rules in effect on the date the legislative audit bureau begins its analysis, the legislative audit bureau shall analyze the benefits and negative effects of regulatory alternatives to the bill or proposal, including an analysis of, at least, all of the following alternatives, which are in the order of least to most restrictive:

SB541-SSA1,5,24 1. Requiring an individual or business to provide a notice to consumers so that consumers may avoid the harm or endangerment.

SB541-SSA1,6,2 2. Recognizing a credential or accreditation for an individual that is issued by a private organization.

SB541-SSA1,6,4 3. Allowing consumers to bring a specific private civil cause of action to remedy a harm to the consumers.

SB541-SSA1,6,5 4. Designating a particular practice as unprofessional conduct or unfair trade.

SB541-SSA1,6,7 5. Regulating an aspect of the process of providing the specific goods or services to consumers.

SB541-SSA1,6,8 6. Requiring a governmental agency to inspect a business or practice location.

SB541-SSA1,6,10 7. Requiring an individual or a business that employs the individual to take out a bond, carry insurance, or meet another financial stability requirement.

SB541-SSA1,6,12 8. Issuing a voluntary credential by a governmental agency to indicate that an individual has met certain criteria.

SB541-SSA1,6,15 9. Requiring an occupational credential as in the proposal or bill described in sub. (2) but that has fewer or less stringent criteria for obtaining or maintaining the credential than are required in the proposal or bill.

SB541-SSA1,6,16 10. Requiring the occupational credential as proposed in the proposal or bill.

SB541-SSA1,6,21 (c) In conducting its evaluation under par. (b), the legislative audit bureau shall review and consider regulatory and credential requirements for that profession, occupation, or field in other states. The legislative audit bureau shall include in its report under sub. (3) a summary of any requirements reviewed under this paragraph.

SB541-SSA1,2 Section 2 . Initial applicability.

SB541-SSA1,7,3 (1) Occupational license reports. This act first applies to bills introduced on first day of the next biennial legislative session beginning after the effective date of this subsection.

SB541-SSA1,7,4 (End)