SB47,1,8 1An Act to amend 15.155 (5), 227.114 (6), 227.114 (7m), 227.14 (2g) (intro.),
2227.19 (3) (intro.), 227.19 (3m), 227.24 (3m) (intro.) and 560.42 (1m) (b); and to
3create
227.04, 560.42 (1m) (c) and 560.43 (3) of the statutes; relating to:
4changes to the membership of the Small Business Regulatory Review Board,
5notification to the Small Business Regulatory Review Board of bills with an
6economic impact on small businesses, the role of the Office of Regulatory
7Assistance in the Department of Commerce, and requiring the exercise of
8rule-making authority.
Analysis by the Legislative Reference Bureau
This bill makes the following changes to the membership of the Small Business
Regulatory Review Board (board), the considerations to be made for small businesses
by agencies engaging in administrative rule making, the responsibilities of small
business regulatory coordinators in each agency, and the responsibilities of the Office
of Regulatory Assistance in the Department of Commerce (Commerce):
Small Business Regulatory Review Board
Currently, the membership of the board consists of six representatives of small
businesses, the chairpersons of the senate and assembly committees concerned with
small businesses, and one representative each from the departments of

Administration; Agriculture, Trade and Consumer Protection; Children and
Families; Commerce; Health Services; Natural Resources; Regulation and
Licensing; Revenue; and Workforce Development. Current law defines "small
business" as a business entity, including its affiliates, which is independently owned
and operated and not dominant in its field, and which employs 25 or fewer full-time
employees or which has gross annual sales of less than $5,000,000.
The board serves small businesses by reviewing administrative rules proposed
by and emergency rules promulgated by agencies to determine the fiscal effect of the
rules on small businesses. The board also reviews whether an agency has prepared
an analysis for each proposed rule and emergency rule, sufficiently considered the
effect of a proposed rule on small businesses, and complied with certain other
procedural and substantive requirements as it prepared the proposed rule or
emergency rule.
This bill eliminates from the board the representatives of all departments and
increases the number of representatives of small businesses on the board to seven.
Rule making: considerations for small businesses
Under current law, each state agency must submit proposed administrative
rules to the Legislative Council for review, prepare an analysis of the proposed rule,
and, with certain exceptions, provide notice of and a public hearing regarding the
proposed rule. If an agency determines that a proposed administrative rule may
have a significant economic impact on small businesses, the agency must forward a
copy of the proposed rule to the board.
Under current law, for each proposed rule that will have an effect on small
businesses, an agency must prepare a final regulatory flexibility analysis that
includes certain information, including a summary of issues raised by small
businesses and any changes made to the proposed rule as a result of information
provided by small businesses. A final regulatory flexibility analysis is not required
if the agency determines that the rule will not have a significant economic impact on
a substantial number of small businesses.
Under certain circumstances, an agency may promulgate an emergency rule
without complying with the notice and public hearing requirements. An agency
must file a promulgated emergency rule with the Legislative Reference Bureau
(LRB). If the emergency rule may have a significant economic impact on small
businesses, the agency must submit a copy of the rule to the board on the same day
it files the rule with the LRB.
With certain exceptions, a rule promulgated by an agency takes effect on the
first day of the first month beginning after the day on which the rule is promulgated.
Generally, an emergency rule takes effect upon publication. A rule that has a
significant economic impact on small businesses applies to small businesses no
earlier than the first day of the third month beginning after the date of publication.
This bill requires an agency to forward a copy of a proposed administrative rule
or an emergency rule to the board if the rule may have an economic impact on small
businesses, and not just a significant economic impact. The bill directs the board to
then determine whether a proposed rule or emergency rule will have a significant
economic impact on a substantial number of small businesses. If the board

determines that a proposed rule or emergency rule will have a significant economic
impact on a substantial number of small businesses, the board may submit
suggested changes in the proposed rule to minimize the economic impact of the
proposed rule or emergency rule, or may recommend that the proposed rule, but not
the emergency rule, be withdrawn. A final regulatory flexibility analysis is not
required under the bill if the board, and not the agency, determines that the rule will
not have a significant economic impact on small businesses.
Administrative law: considerations for small business
This bill requires each agency, to the extent possible, to do all of the following:
1. Provide assistance to small businesses to help small businesses comply with
rules promulgated by the agency.
2. Establish reduced fines and alternative enforcement mechanisms for minor
violations of administrative rules by small businesses.
3. Consider the use of a written warning or alternative penalty against a small
business found to be in violation of a rule if the small business made a good faith effort
to comply with the rule and the rule violation does not pose a threat to public health,
safety, or welfare.
Small business regulatory coordinators and the Office of Regulatory
Assistance
Under current law, each agency must designate a small business regulatory
coordinator to act as a point of contact within the agency for regulatory issues
involving small businesses. Current law defines "agency" to mean a board,
commission, committee, department, or officer in the state government, except the
governor, a district attorney, or a military or judicial officer. Also under current law,
Commerce operates the Small Business Ombudsman Clearinghouse (clearinghouse)
to, in part, assist agencies to encourage the participation of small businesses in rule
making and the Office of Regulatory Assistance (office) to assist all businesses with
permitting and other regulatory compliance.
The bill requires each agency to designate one employee to serve as the agency's
small business regulatory coordinator and clarifies that the small business
regulatory coordinator of each agency must work with the clearinghouse and the
office to facilitate communication between small businesses and state agencies with
respect to administrative rules development and enforcement. Under the bill, the
office must operate as a liaison between small businesses and agencies regarding
small businesses' compliance with administrative rules and agencies' discretionary
enforcement of rules violations against small businesses.
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:
SB47, s. 1 1Section 1. 15.155 (5) of the statutes is amended to read:
SB47,4,14
115.155 (5) Small business regulatory review board. There is created a small
2business regulatory review board, attached to the department of commerce under s.
315.03. The board shall consist of a representative of the department of
4administration; a representative of the department of agriculture, trade and
5consumer protection; a representative of the department of children and families; a
6representative of the department of commerce; a representative of the department
7of health services; a representative of the department of natural resources; a
8representative of the department of regulation and licensing; a representative of the

9department of revenue; a representative of the department of workforce
10development; 6
7 representatives of small businesses, as defined in s. 227.114 (1),
11who shall be appointed for 3-year terms;, and the chairpersons of one senate and one
12assembly committee concerned with small businesses, appointed as are members of
13standing committees. The representatives of the departments shall be selected by
14the secretary of that department.
SB47, s. 2 15Section 2. 227.04 of the statutes is created to read:
SB47,4,17 16227.04 Considerations for small business. (1) In this section, "small
17business" has the meaning given in s. 227.114 (1).
SB47,4,19 18(2) Consistent with the requirements under s. 895.59 and, to the extent
19possible, each agency shall do all of the following:
SB47,4,2120 (a) Provide assistance to small businesses to help small businesses comply with
21rules promulgated by the agency.
SB47,4,2422 (b) Establish, by rule, reduced fines and alternative enforcement mechanisms
23for minor violations of administrative rules made by small businesses. The rules
24promulgated under this paragraph shall include a definition of "minor violation."
SB47,5,3
1(c) In deciding whether to impose a fine against a small business found to be
2in violation of a rule, consider the appropriateness of a written warning, reduced fine,
3or alternative penalty if all of the following apply:
SB47,5,44 1. The small business has made a good faith effort to comply with the rule.
SB47,5,55 2. The rule violation does not pose a threat to public health, safety, or welfare.
SB47, s. 3 6Section 3. 227.114 (6) of the statutes is amended to read:
SB47,5,167 227.114 (6) When an agency, under s. 227.20 (1), files with the legislative
8reference bureau a rule that is subject to this section, the agency shall include with
9the rule a summary of the analysis prepared under s. 227.19 (3) (e) and a summary
10of the comments of the legislative standing committees, if any. If , under s. 227.19
11(3m),
the rule does not require the analysis under s. 227.19 (3) (e), the agency shall
12include with the rule a statement of the reason for the agency's small business
13regulatory review board's
determination under s. 227.19 (3m) that the rule will not
14have a significant economic impact on a substantial number of small businesses
. The
15legislative reference bureau shall publish the summaries or the statement in the
16register with the rule.
SB47, s. 4 17Section 4. 227.114 (7m) of the statutes is amended to read:
SB47,5,2418 227.114 (7m) The Each agency shall designate a at least one employee to serve
19as the
small business regulatory coordinator to for the agency, and shall publicize
20that employee's electronic mail address and telephone number. The small business
21regulatory coordinator shall
act as a contact person for small business regulatory
22issues for the agency and shall publicize that person's electronic mail address and
23telephone number
cooperate with the staff of the office of regulatory assistance and
24the small business ombudsman clearinghouse as required under s. 560.43 (3)
.
SB47, s. 5 25Section 5. 227.14 (2g) (intro.) of the statutes is amended to read:
SB47,7,3
1227.14 (2g) Review by the small business regulatory review board. (intro.)
2On the same day that an agency submits to the legislative council staff under s.
3227.15 a proposed rule that may have a significant an economic impact on small
4businesses, the agency shall submit the proposed rule, the analysis required under
5sub. (2), and a description of its actions taken to comply with s. 227.114 (2) and (3)
6to the small business regulatory review board. The board may use cost-benefit
7analysis to determine the fiscal effect of the rule on small businesses and shall
8determine whether the proposed rule will have a significant economic impact on a
9substantial number of small businesses and
whether the agency has complied with
10subs. (2) and (2m) and s. 227.114 (2) and (3). Except as provided in subs. (1m) and
11(1s), each proposed rule shall include provisions detailing how the rule will be
12enforced. If the board determines that the rule does not include an enforcement
13provision or that the agency failed to comply with sub. (2) or (2m) or s. 227.114 (2)
14or (3), the board shall notify the agency of that determination and ask the agency to
15comply with any of those requirements. If the board determines that the proposed
16rule will not have a significant economic impact on a substantial number of small
17businesses, the board shall submit a statement to that effect to the agency that sets
18forth the reason for the board's decision. If the board determines that the proposed
19rule will have a significant economic impact on a substantial number of small
20businesses, the board may submit to the agency suggested changes in the proposed
21rule to minimize the economic impact of the proposed rule, or may recommend the
22withdrawal of the proposed rule under sub. (6).
In addition, the board may submit
23other suggested changes in the proposed rule to the agency, including proposals to
24reduce the use of cross-references in the rule. The board shall send a report of those
25suggestions
any suggested changes and of any notice of failure to include

1enforcement provisions or to comply with sub. (2) or (2m) or s. 227.114 (2) or (3) to
2the legislative council staff. The notification to the agency may include a request that
3the agency do any of the following:
SB47, s. 6 4Section 6. 227.19 (3) (intro.) of the statutes is amended to read:
SB47,7,135 227.19 (3) Form of report. (intro.) The report required under sub. (2) shall be
6in writing and shall include the proposed rule in the form specified in s. 227.14 (1),;
7the material specified in s. 227.14 (2) to (4),; including any statement, suggested
8changes, or other material submitted to the agency by the small business regulatory
9review board;
a copy of any economic impact report prepared by the agency under s.
10227.137,; a copy of any report prepared by the department of administration under
11s. 227.138,; a copy of any energy impact report received from the public service
12commission under s. 227.117 (2),; and a copy of any recommendations of the
13legislative council staff. The report shall also include all of the following:
SB47, s. 7 14Section 7. 227.19 (3m) of the statutes is amended to read:
SB47,7,1815 227.19 (3m) Analysis not required. The final regulatory flexibility analysis
16specified under sub. (3) (e) is not required for any rule if the agency, after complying
17with s. 227.114 (1) to (5),
board determines that the rule will not have a significant
18economic impact on a substantial number of small businesses.
SB47, s. 8 19Section 8. 227.24 (3m) (intro.) of the statutes is amended to read:
SB47,8,1420 227.24 (3m) Review by the small business regulatory review board. (intro.)
21On the same day that the agency files a rule under sub. (3) that may have a
22significant
an economic impact on small businesses, as defined in s. 227.114 (1), the
23agency shall submit a copy of the rule to the small business regulatory review board.
24The board may use cost-benefit analysis to determine the fiscal effect of the
25emergency rule on small businesses and shall determine whether the emergency

1rule will have a significant economic impact on a substantial number of small
2businesses and
whether the agency complied with ss. 227.114 (2) and (3) and 227.14
3(2m). If the board determines that the emergency rule will not have a significant
4economic impact on a substantial number of small businesses, the board shall submit
5a statement to that effect to the agency that sets forth the reason for the board's
6decision. If the board determines that the emergency rule will have a significant
7economic impact on a substantial number of small businesses, the board may submit
8to the agency and to the legislative council staff suggested changes in the emergency
9rule to minimize the economic impact of the emergency rule.
If the board determines
10that the agency failed to comply with s. 227.114 (2) or (3) or 227.14 (2m), the board
11shall notify the agency of that determination and ask the agency to comply with any
12of those provisions. In addition, the board may submit other suggested changes in
13the proposed rule to the agency and may include a request that the agency do any
14of the following:
SB47, s. 9 15Section 9. 560.42 (1m) (b) of the statutes is amended to read:
SB47,8,1816 560.42 (1m) (b) Serve as a liaison between businesses and agencies, federal
17agencies, authorities, municipalities, and local economic development
18organizations.
SB47, s. 10 19Section 10. 560.42 (1m) (c) of the statutes is created to read:
SB47,8,2120 560.42 (1m) (c) Serve as a liaison between small businesses and agencies to
21accomplish the objectives of s. 227.04.
SB47, s. 11 22Section 11. 560.43 (3) of the statutes is created to read:
SB47,9,323 560.43 (3) Encouragement of participation of small businesses in rule
24making
. Each agency shall establish methods to encourage the participation of small
25businesses in rule making under s. 227.114 (4), and shall cooperate with the office

1and the small business ombudsman clearinghouse to accomplish the objectives of the
2provisions of ss. 227.04, 227.114, 560.03 (9), and 560.42 as they relate to small
3businesses.
SB47, s. 12 4Section 12. Initial applicability.
SB47,9,75 (1) The treatment of section 227.14 (2g) (intro.) of the statutes first applies to
6a proposed administrative rule submitted by an agency to the legislative council staff
7under section 227.15 of the statutes on the effective date of this subsection.
SB47,9,108 (2) The treatment of section 227.24 (3m) (intro.) of the statutes first applies to
9an emergency rule filed with the legislative reference bureau on the effective date
10of this subsection.
SB47,9,1111 (End)
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