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Finally, 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 are considered at the spring
DNR-WCC meeting.
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 permanent rules proposed by the agency.
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 the bill, for rules that are considered at the spring DNR-WCC meeting,
an economic impact analysis is required only if the secretary of administration
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 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 specific information to be
included in an economic impact analysis.

The bill eliminates the requirements that this information be included in an
economic impact analysis for rules that are considered at the spring DNR-WCC
meeting. Under the bill, an economic impact analysis that is required for rules that
are 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 intended 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 the benefits of the rule, including how the rule reduces the risks and
addresses the problems that the rule is intended to address.
Independent economic impact analyses. Current law allows for an
independent economic impact analysis to be requested and prepared for a proposed
rule under certain circumstances. An independent economic impact analysis must
be prepared by a person other than an agency and must contain much of the same
information required for an economic impact analysis prepared by an agency under
current law.
Under the bill, an independent economic impact analysis may not be requested
for a rule considered at the spring DNR-WCC meeting.
Bill required for certain rules. Under current law, subject to certain
exceptions, if an economic impact analysis or an independent economic impact
analysis prepared for a proposed rule indicates that $10,000,000 or more in
implementation and compliance costs are reasonably expected to be incurred by or
passed along to businesses, local governmental units, and individuals over any
two-year period as a result of the proposed rule, the agency proposing the rule must
stop work on the proposed rule and may not continue promulgating the proposed rule
unless 1) the agency modifies the proposed rule to address its implementation and
compliance costs or 2) a bill is enacted authorizing the agency to promulgate the rule.
Under the bill, these provisions do not apply with respect to a rule considered
at the spring DNR-WCC meeting.
Legislative review of proposed rules
Under current law, proposed rules in final form must be submitted to the
legislature for review by one standing committee in each house and the Joint
Committee for Review of Administrative Rules (JCRAR), which may each take
certain actions on the proposed rule. Current law provides that a proposed rule
received in the legislature after the last day of the legislature's final
general-business floorperiod is instead considered received on the first day of the
next regular session of the legislature, unless the presiding officers of both houses
direct referral before that day. The bill provides that, with respect to a proposed rule
considered at the spring DNR-WCC meeting, the proposed rule is only considered
received on the first day of the next regular session of the legislature if it is received
on or after September 1 of an even-numbered year.
Finally, under current law, each committee has 30 days after the proposed rule
has been referred to the committee to review the proposed rule, subject to limited

extensions. However, an exception provides that if a proposed rule received after the
last day of the legislature's final general-business floorperiod is referred for
committee review before the first day of the next regular session of the legislature,
the committee has until the day the next legislature convenes to review the proposed
rule. A similar exception applies to proposed rules when they are referred to JCRAR.
The bill provides that these exceptions do not apply to proposed rules considered at
the spring DNR-WCC meeting and therefore the review periods for those
committees are always 30 days, subject to other limited extensions.
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:
AB326,1 1Section 1. 227.135 (2) of the statutes is amended to read:
AB326,5,72 227.135 (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
4department of administration, which shall make a determination as to whether the
5agency has the explicit authority to promulgate the rule as proposed in the statement
6of scope and shall report the statement of scope and its determination to the governor
7who, in his or her discretion, may approve or reject the statement of scope. The
8agency may not send the statement to the legislative reference bureau for
9publication under sub. (3) until the governor issues a written notice of approval of
10the statement. The agency shall also present the statement to the individual or body
11with policy-making powers over the subject matter of the proposed rule for approval.
12The individual or body with policy-making powers may not approve the statement
13until at least 10 days after publication of the statement under sub. (3) and, if a
14preliminary public hearing and comment period are held by the agency under s.
15227.136, until the individual or body has received and reviewed any public comments
16and feedback received from the agency under s. 227.136 (5). No state employee or

1official may perform any activity in connection with the drafting of a proposed rule
2to which this subsection applies, except for an activity necessary to prepare the
3statement of the scope of the proposed rule until the governor and the individual or
4body with policy-making powers over the subject matter of the proposed rule
5approve the statement. This subsection does not prohibit an agency from performing
6an activity necessary to prepare a petition and proposed rule for submission under
7s. 227.26 (4).
AB326,2 8Section 2 . 227.135 (2m) of the statutes is created to read:
AB326,5,259 227.135 (2m) If the department of natural resources prepares a statement of
10the scope of a proposed rule relating to fish or wildlife that is considered at the joint
11annual spring hearing of the department of natural resources and the Wisconsin
12conservation congress, that department shall present the statement to the natural
13resources board for approval. The natural resources board may not approve the
14statement until at least 10 days after publication of the statement under sub. (3) and,
15if the preliminary public hearing and comment period are held by the department
16under s. 227.136, until the board has received and reviewed any public comments
17and feedback from the department under s. 227.136 (5). If no preliminary public
18hearing and comment period are held on a statement of scope by the department
19under s. 227.136 and the natural resources board does not disapprove the statement
20within 30 days after the statement is presented to that board or by the 11th day after
21publication of the statement in the register, whichever is later, the statement is
22considered to be approved. No state employee or official may perform any activity
23in connection with the drafting of a proposed rule to which this subsection applies
24except for an activity necessary to prepare the statement of the scope of the proposed
25rule until the natural resources board approves the statement.
AB326,3
1Section 3. 227.135 (3) of the statutes is amended to read:
AB326,6,152 227.135 (3) If the governor approves a statement of the scope of a proposed rule
3under
Subject to sub. (2), the agency shall send an electronic copy of the a statement
4of the scope of a proposed rule to the legislative reference bureau, in a format
5approved by the legislative reference bureau, for publication in the register. On the
6same day that the agency sends the statement to the legislative reference bureau,
7the agency shall send a copy of the statement to the secretary of administration and
8to the chief clerks of each house of the legislature, who shall distribute the statement
9to the cochairpersons of the joint committee for review of administrative rules. The
10agency shall include with any statement of scope sent to the legislative reference
11bureau the date of the governor's approval of the statement of scope , if gubernatorial
12approval of the statement of scope is required
. The legislative reference bureau shall
13assign a discrete identifying number to each statement of scope and shall include
14that number and, if applicable, the date of the governor's approval in the publication
15of the statement of scope in the register.
AB326,4 16Section 4 . 227.135 (6) of the statutes is created to read:
AB326,6,1917 227.135 (6) This section does not apply to emergency rules relating to fish or
18wildlife that are considered at the joint annual spring hearing of the department of
19natural resources and the Wisconsin conservation congress.
AB326,5 20Section 5. 227.137 (2) of the statutes is amended to read:
AB326,6,2321 227.137 (2) An Except as provided in sub. (2m), an agency shall prepare an
22economic impact analysis for a proposed rule before submitting the proposed rule to
23the legislative council staff under s. 227.15.
AB326,6 24Section 6 . 227.137 (2m) of the statutes is created to read:
AB326,7,16
1227.137 (2m) After the legislative reference bureau publishes under s. 227.135
2(3) a statement of the scope of a proposed rule relating to fish or wildlife that is
3considered at the joint annual spring hearing of the department of natural resources
4and the Wisconsin conservation congress, and before the department of natural
5resources submits the notice of the proposed rule to the legislature for review under
6s. 227.19 (2), a municipality, an association that represents a farm, labor, business,
7or professional group, or 5 or more persons who would be directly and uniquely
8affected by the proposed rule may submit a petition to the department of
9administration asking the secretary of administration to direct the department of
10natural resources to prepare an economic impact analysis for the proposed rule. If
11the secretary of administration directs the department of natural resources to
12prepare the economic impact analysis, that department shall prepare the economic
13impact analysis before submitting the notice of the proposed rule to the legislature
14for review under s. 227.19 (2). The secretary of administration shall direct the
15department of natural resources to prepare an economic impact analysis for the
16proposed rule if the secretary determines that all of the following apply:
AB326,7,2017 (a) The petition was submitted to the department of administration no later
18than 90 days after publication of the statement of the scope of the proposed rule
19under s. 227.135 (3) or no later than 10 days after publication of the notice for a public
20hearing under s. 227.17, whichever is later.
AB326,7,2521 (b) The proposed rule would cost affected persons $20,000,000 or more during
22each of the first 5 years after the rule's implementation to comply with the rule or the
23proposed rule would adversely affect in a material way the economy, a sector of the
24economy, productivity, competition, jobs, the environment, public health or safety, or
25state, local, or tribal governments or communities.
AB326,7
1Section 7. 227.137 (3) (intro.) of the statutes is amended to read:
AB326,8,132 227.137 (3) (intro.) An economic impact analysis of a proposed rule prepared
3under sub. (2) or (4m)
shall contain information on the economic effect of the
4proposed rule on specific businesses, business sectors, public utility ratepayers, local
5governmental units, and the state's economy as a whole. The agency or person
6preparing the analysis shall solicit information and advice from businesses,
7associations representing businesses, local governmental units, and individuals that
8may be affected by the proposed rule. The agency or person shall prepare the
9economic impact analysis in coordination with local governmental units that may be
10affected by the proposed rule. The agency or person may also request information
11that is reasonably necessary for the preparation of an economic impact analysis from
12other businesses, associations, local governmental units, and individuals and from
13other agencies. The economic impact analysis shall include all of the following:
AB326,8 14Section 8 . 227.137 (3m) of the statutes is created to read:
AB326,8,2415 227.137 (3m) An economic impact analysis of a proposed rule prepared under
16sub. (2m) shall contain information on the effect of the proposed rule on specific
17businesses, business sectors, and the state's economy. When preparing the analysis,
18the department of natural resources shall solicit information and advice from the
19Wisconsin Economic Development Corporation and from businesses, associations,
20governmental units, and individuals that may be affected by the proposed rule. The
21department of natural resources may request information that is reasonably
22necessary for the preparation of the economic impact analysis from other state
23agencies and from businesses, associations, governmental units, and individuals.
24The economic impact analysis shall include all of the following:
AB326,9,2
1(a) An analysis and quantification of the problem, including any risks to public
2health or the environment, that the proposed rule is intending to address.
AB326,9,53 (b) An analysis and quantification of the economic impact of the proposed rule,
4including the costs that are reasonably expected to be incurred by the state,
5businesses, governmental units, and affected individuals.
AB326,9,76 (c) An analysis of the benefits of the proposed rule, including how the rule
7reduces the risks and addresses the problems that the rule is intended to address.
AB326,9 8Section 9. 227.137 (4) of the statutes is amended to read:
AB326,9,219 227.137 (4) On the same day that the agency submits the an economic impact
10analysis prepared under sub. (2) to the legislative council staff under s. 227.15 (1),
11the agency shall also submit that analysis to the department of administration, to
12the governor, and to the chief clerks of each house of the legislature, who shall
13distribute the analysis to the presiding officers of their respective houses, to the
14chairpersons of the appropriate standing committees of their respective houses, as
15designated by those presiding officers, and to the cochairpersons of the joint
16committee for review of administrative rules. If a proposed rule is modified after the
17economic impact analysis is submitted under this subsection so that the economic
18impact of the proposed rule is significantly changed, the agency shall prepare a
19revised economic impact analysis for the proposed rule as modified. A revised
20economic impact analysis shall be prepared and submitted in the same manner as
21an original economic impact analysis is prepared and submitted.
AB326,10 22Section 10 . 227.137 (4r) of the statutes is created to read:
AB326,9,2523 227.137 (4r) The department of natural resources shall submit an economic
24impact analysis prepared under sub. (2m) to the legislative council staff, to the
25department of administration, and to the petitioner.
AB326,11
1Section 11. 227.14 (2) (a) 6. of the statutes is amended to read:
AB326,10,52 227.14 (2) (a) 6. Any analysis and supporting documentation that the agency
3used in support of the agency's determination of the rule's effect on small businesses
4under s. 227.114 or that was used when the agency prepared an economic impact
5analysis under s. 227.137 (3) (2) or (2m).
AB326,12 6Section 12. 227.14 (4m) of the statutes is amended to read:
AB326,10,257 227.14 (4m) Notice of submittal to legislative council staff. On the same
8day that an agency submits a proposed rule to the legislative council staff under s.
9227.15, the agency shall prepare a written notice of the agency's submittal to the
10legislative council staff. The notice shall include a statement of the date on which
11the proposed rule has been submitted to the legislative council staff for review, of the
12subject matter of the proposed rule, and of whether a public hearing on the proposed
13rule is required under s. 227.16, and shall identify the organizational unit within the
14agency that is primarily responsible for the promulgation of the rule. The notice
15shall also include a statement containing the identifying number of the statement
16of scope for the proposed rule assigned under s. 227.135 (3), the date of publication
17and issue number of the register in which the statement of scope is published, and
18the date of approval of the statement of scope by the individual or body with
19policy-making powers over the subject matter of the proposed rule under s. 227.135
20(2) or (2m). The notice shall be approved by the individual or body with
21policy-making powers over the subject matter of the proposed rule. The agency shall
22send an electronic copy of the notice to the legislative reference bureau, in a format
23approved by the legislative reference bureau, for publication in the register. On the
24same day that the agency sends the notice to the legislative reference bureau, the
25agency shall send a copy of the notice to the secretary of administration.
AB326,13
1Section 13. 227.15 (1) of the statutes is amended to read:
AB326,11,152 227.15 (1) Submittal to legislative council staff. Prior to a public hearing
3on a proposed rule required under s. 227.16 or, if no such public hearing is required,
4prior to notice under s. 227.19, an agency shall submit the proposed rule to the
5legislative council staff for review. The proposed rule shall be in the form required
6under s. 227.14 (1), and shall include the material required under s. 227.14 (2), (3),
7and (4), any housing impact analysis required under s. 227.115 (2) (a), any revised
8housing impact analysis required under s. 227.115 (2) (b), the any economic impact
9analysis required under s. 227.137 (2) or (2m), and any revised economic impact
10analysis required under s. 227.137 (4). An agency may not hold a public hearing on
11a proposed rule or give notice under s. 227.19 until after it has received a written
12report of the legislative council staff review of the proposed rule or until after the
13initial review period of 20 working days under sub. (2) (intro.), whichever comes first.
14An agency may give notice of a public hearing prior to receipt of the legislative council
15staff report. This subsection does not apply to rules promulgated under s. 227.24.
AB326,14 16Section 14. 227.15 (1m) (bm) of the statutes is amended to read:
AB326,11,1917 227.15 (1m) (bm) The Any economic impact analysis required under s. 227.137
18(2) or (2m), any revised economic impact analysis required under s. 227.137 (4), and
19any independent economic impact analysis prepared under s. 227.137 (4m).
AB326,15 20Section 15. 227.185 of the statutes is amended to read:
AB326,12,7 21227.185 Approval by governor. After Except as otherwise provided in this
22section, after
a proposed rule is in final draft form, the agency shall submit the
23proposed rule to the governor for approval. The governor, in his or her discretion,
24may approve or reject the proposed rule. If the governor approves a proposed rule,
25the governor shall provide the agency with a written notice of that approval. No

1Except as otherwise provided in this section, no proposed rule may be submitted to
2the legislature for review under s. 227.19 (2) unless the governor has approved the
3proposed rule in writing. The agency shall notify the joint committee for review of
4administrative rules whenever it submits a proposed rule for approval under this
5section. This section does not apply to a proposed rule relating to fish or wildlife that
6is considered at the joint annual spring hearing of the department of natural
7resources and the Wisconsin conservation congress.
AB326,16 8Section 16. 227.19 (2) of the statutes is renumbered 227.19 (2) (a) and
9amended to read:
AB326,12,1310 227.19 (2) (a) An agency shall submit a notice to the chief clerk of each house
11of the legislature when a proposed rule is in final draft form. The notice shall be
12submitted in triplicate and shall be accompanied by a report in the form specified
13under sub. (3). A
AB326,12,19 14(b) 1. Except as provided in subd. 2., a notice received under this subsection
15after the last day of the legislature's final general-business floorperiod in the
16biennial session as established in the joint resolution required under s. 13.02 (3) shall
17be considered received on the first day of the next regular session of the legislature,
18unless the presiding officers of both houses direct referral of the notice and report
19under this subsection before that day.
AB326,12,23 20(c) The presiding officer of each house of the legislature shall, within 10
21working days following the day on which the a notice and report are received under
22this subsection
, direct the appropriate chief clerk to refer the notice and report to one
23standing committee.
AB326,13,5 24(d) The agency shall submit to the legislative reference bureau for publication
25in the register, in an electronic format approved by the legislative reference bureau,

1a statement that a proposed rule has been submitted to the chief clerk of each house
2of the legislature. The agency shall also include in the statement the date of approval
3of the proposed rule by the governor under s. 227.185 if the proposed rule is subject
4to gubernatorial approval
. Each chief clerk shall enter a similar statement in the
5journal of his or her house.
AB326,17 6Section 17 . 227.19 (2) (b) 2. of the statutes is created to read:
AB326,13,137 227.19 (2) (b) 2. For a proposed rule relating to fish or wildlife that is considered
8at the joint annual spring hearing of the department of natural resources and the
9Wisconsin conservation congress, a notice received under this subsection shall be
10considered received on the first day of the next regular session of the legislature only
11if the notice is received on or after September 1 of an even-numbered year, unless
12the presiding officers of both houses direct referral of the notice and report under this
13subsection before that day.
AB326,18 14Section 18. 227.19 (3) (intro.) of the statutes is amended to read:
AB326,13,2515 227.19 (3) Form of report. (intro.) The report required under sub. (2) shall be
16in writing and shall include the proposed rule in the form specified in s. 227.14 (1);
17the material specified in s. 227.14 (2), (3), and (4); including any statement,
18suggested changes, or other material submitted to the agency by the small business
19regulatory review board; a copy of any economic impact analysis prepared by the
20agency under s. 227.137 (2) or (2m); a copy of any revised economic impact analysis
21prepared by the agency under s. 227.137 (4); a copy of any independent economic
22impact analysis prepared under s. 227.137 (4m); a copy of any energy impact report
23received from the public service commission under s. 227.117 (2); and a copy of any
24recommendations of the legislative council staff. The report shall also include all of
25the following:
AB326,19
1Section 19. 227.19 (4) (b) 1m. of the statutes is amended to read:
AB326,14,102 227.19 (4) (b) 1m. Except as provided under subd. 5., if a notice and report
3received under sub. (2) after the last day of the legislature's final general-business
4floorperiod as specified in sub. (2) is referred for committee review before the first day
5of the next regular session of the legislature, the committee review period for each
6committee to which the proposed rule is referred extends to the day specified under
7s. 13.02 (1) for the next legislature to convene. This subdivision does not apply with
8respect to a proposed rule relating to fish or wildlife that is considered at the joint
9annual spring hearing of the department of natural resources and the Wisconsin
10conservation congress.
AB326,20 11Section 20. 227.19 (5) (b) 1m. of the statutes is amended to read:
AB326,15,212 227.19 (5) (b) 1m. If a notice and report received under sub. (2) after the last
13day of the legislature's final general-business floorperiod as specified in sub. (2) is
14referred for review by the joint committee for review of administrative rules before
15the first day of the next regular session of the legislature, the review period for the
16joint committee for review of administrative rules extends to the day specified under
17s. 13.02 (1) for the next legislature to convene. During that review period, the joint
18committee for review of administrative rules may meet and take action in executive
19session and may take any action on the proposed rule in whole or in part permitted
20under this subsection. If the joint committee for review of administrative rules meets
21in executive session with respect to a proposed rule or part of a proposed rule to which
22a committee has objected, that joint committee shall take action as permitted under
23this subsection with respect to the committee's objection. This subdivision does not
24apply with respect to a proposed rule relating to fish or wildlife that is considered at

1the joint annual spring hearing of the department of natural resources and the
2Wisconsin conservation congress.
AB326,21 3Section 21. 227.24 (1) (e) 1d. of the statutes is amended to read:
AB326,15,164 227.24 (1) (e) 1d. Prepare Except as provided in s. 227.135 (6), prepare a
5statement of the scope of the proposed emergency rule as provided in s. 227.135 (1),
6obtain approval of the statement as provided in s. 227.135 (2), send the statement
7to the legislative reference bureau for publication in the register as provided in s.
8227.135 (3), and hold a preliminary public hearing and comment period if directed
9under s. 227.136 (1). If the agency changes the scope of a proposed emergency rule
10as described in s. 227.135 (4), the agency shall prepare and obtain approval of a
11revised statement of the scope of the proposed emergency rule as provided in s.
12227.135 (4). No state employee or official may perform any activity in connection
13with the drafting of a proposed emergency rule except for an activity necessary to
14prepare the statement of the scope of the proposed emergency rule until the governor
15and the individual or body with policy-making powers over the subject matter of the
16proposed emergency rule approve the statement.
AB326,22 17Section 22. 227.24 (1) (e) 1g. of the statutes is amended to read:
AB326,16,218 227.24 (1) (e) 1g. Submit Except as otherwise provided in this subdivision,
19submit
the proposed emergency rule in final draft form to the governor for approval.
20The governor, in his or her discretion, may approve or reject the proposed emergency
21rule. If the governor approves a proposed emergency rule, the governor shall provide
22the agency with a written notice of that approval. An agency may not file an
23emergency rule with the legislative reference bureau as provided in s. 227.20 and an
24emergency rule may not be published until the governor approves the emergency
25rule in writing. This subdivision does not apply to a proposed emergency rule

1relating to fish or wildlife that is considered at the joint annual spring hearing of the
2department of natural resources and the Wisconsin conservation congress.
AB326,23 3Section 23 . Initial applicability.
AB326,16,94 (1) Gubernatorial approval of rules; scope statements. The treatment of ss.
5227.135 (2), (2m), (3), and (6), 227.14 (4m), 227.185, and 227.24 (1) (e) 1d. and 1g. and
6the renumbering and amendment of s. 227.19 (2) (with respect to gubernatorial
7approval of rules) first apply to a proposed administrative rule whose statement of
8scope is published in the Wisconsin Administrative Register on the effective date of
9this subsection.
AB326,16,1510 (2) Economic impact analyses; legislative review. The treatment of ss. 227.137
11(2), (2m), (3) (intro.), (3m), (4), and (4r), 227.14 (2) (a) 6., 227.15 (1) and (1m) (bm),
12and 227.19 (3) (intro.), (4) (b) 1m., and (5) (b) 1m., the renumbering and amendment
13of s. 227.19 (2) (with respect to legislative review of rules), and the creation of s.
14227.19 (2) (b) 2. first apply to a notice of a proposed administrative rule submitted
15to the legislature under s. 227.19 (2) on the effective date of this subsection.
AB326,16,1616 (End)
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