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Wisconsin Enacts Regulatory Overhaul Process

Posted By Chris Greissing, Thursday, August 10, 2017

On August 9th, Wisconsin Governor Scott Walker (R) signed S.B. 15, the first state-level regulatory overhaul legislation. Similar federal legislation has been passed in the U.S. House of Representatives several times in recent years, but action has thus far stalled in the U.S. Senate.  The legislation modifies Wisconsin’s Administrative rule-making process in terms of the preparation of “statements of scope”, “economic impact analysis” (EIA), gubernatorial approvals, emergency rules, and most importantly forbids state agencies from implementing any rules costing industry more than $10 million without formal approval from the legislature.  The law requires the Department of Administration to review all statements of scope and determine whether an agency has full authority to promulgate a rule.  The department could then make recommendations to the governor to approve or reject the statement of scope. The department also must perform EIAs to determine whether a proposed rule would cause implementation and compliance costs of more than $10 million over two years.  If the department found a rule would exceed that $10 million threshold, then it would be unable to move the regulation forward without legislative authorization or modifications that would bring the law’s cost to under the $10 million limit.

 

To view the legislation, click here.

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