Wisconsin lawmakers introduce bills to rein in regulatory overreach

A new report by the Wisconsin Institute for Law & Liberty (WILL) on overregulation in Wisconsin has led to a package of Republican bills to restructure the state’s regulatory framework, which GOP authors and co-sponsors say will lift the state’s economy.

The new report, “Regulatory Reform in Wisconsin: An Opportunity for Greater Economic Growth,” argues for what the WILL calls much-needed regulatory reform in the state, and it proposed a number of legislative solutions to take the state there, including no net growth in rules and the automatic sunsetting of regulations.

“Wisconsin has fallen from being a robust engine of economic growth to one of stagnation — overregulation is to blame,” WILL policy director Kyle Koenen said. “We partnered with Patrick McLaughlin to examine a new path forward for Wisconsin’s regulatory environment. It’s our hope that we can arm policymakers with the tools to unleash economic growth once again.”   

Dr. Patrick A. McLaughlin is senior fellow at the Hoover Institution at Stanford University and a visiting research fellow at the Pacific Legal Foundation.

Koenen and McLaughlin said Wisconsin is at a crossroads. Burdened by what they call an outdated and bloated regulatory code, the state now ranks as the 13th most regulated in the nation — with more than 165,000 restrictions on the books. 

That’s five times more than Idaho, the least regulated state, the report states.

 “Wisconsin is the 13th most regulated state in the nation, and it risks falling behind neighboring states if reforms are not implemented,” McLaughlin said. “In this report we highlight the true economic costs of red tape and how systematic regulatory reform not only increases GDP growth but also fosters innovation, creates jobs, and enhances competitiveness.”  

Other states like Indiana, Iowa, and Idaho are slashing unnecessary rules — and reaping the rewards in jobs, investment, and talent — and Wisconsin must do the same, WILL states.

After the report was released, a number of legislative Republicans announced a package of legislative initiatives, including creation of a sunset review process to ensure that all chapters of the administrative code are regularly reviewed, updated, or allowed to expire. 

“Currently, rules stay in effect indefinitely unless repealed or amended — leading to outdated and unnecessary regulations,” WILL stated. 

Another bill would establish a net-zero regulatory budgeting framework, that is, new regulations must either have no economic impact or be offset by the repeal or revision of existing rules. WILL says a third bill would ensure greater transparency in the rulemaking process by requiring agencies to issue a separate scope statement for each rule — whether permanent or emergency. The bill also sets a six-month expiration for emergency rule scope statements to prevent misuse and ensure emergency rules remain temporary, WILL states.

A final bill would allow individuals or businesses that successfully challenge an unlawful administrative rule to recover their attorney fees and litigation costs. 

“Under current law, even when a court finds that an agency violated the law, plaintiffs must cover their own legal expenses,” WILL states. “This reform ensures a fairer process by encouraging valid challenges to illegal regulations without imposing a financial burden on those seeking accountability.”

Republicans on board

Republicans authoring or cosponsoring the bills were enthusiastic about what they called a “Red Tape Reset.” Rep. Amanda Nedweski (R-Pleasant Prairie) said excessive regulations come with real economic consequences.

“They slow growth, drive up costs for businesses and families, and stifle innovation,” Nedweski said. “Small employers and working families are hit the hardest by compliance burdens they didn’t ask for — and often don’t even know exist.”

Nedweski said she ran for office to bring her background in information technology and finance to bear on making government more efficient for everyday Wisconsinites.

“As chair of the Assembly Committee on Government Operations, Accountability, and Transparency, I see this bill package as a major step in the right direction,” she said. “These reforms promote good governance and meaningful public engagement in a process that most people don’t see — but that impacts them every day.”

Nedweski said economic analyses suggest that reducing Wisconsin’s regulatory burden by just 10 percent over the next three years could unlock $6.6 billion in GDP growth by 2037.

“This bill package is yet another example of legislative Republicans’ commitment to shrinking the bloated government whale that our state has become under the Evers administration,” she said. “These bills don’t just promote efficiency, transparency, and accountability — they establish safeguards to ensure that future governors cannot use administrative rules to bypass the will of the people.”

State Sen. Rob Hutton (R-Brookfield) and Rep. Dan Knodl (R-Germantown) said their bills clarify the use of scope statements in administrative rulemaking, enhancing public transparency while holding unelected bureaucrats accountable.

Scope statements are the first formal step in the state’s rulemaking process, the lawmakers said, outlining a proposed rule’s purpose, legal authority, resource needs, and impact. But Hutton and Knodl point to a loophole in current law that allows agencies to issue both emergency and permanent rules — or multiple rules over time — under a single scope statement, a practice they say has reduced public input and blurred the lines between emergency and long-term regulation.

Under their legislation, agencies would have to specify whether a scope statement is for an emergency or permanent rule and limits them to one rule per statement. It also imposes a six-month expiration for emergency rule scope statements, reinforcing their temporary nature.

“We’re restoring integrity to the rulemaking process,” Hutton said. “One rule per scope statement is a simple, common-sense reform that ensures transparency, encourages public participation, and prevents bureaucrats from stretching vague language into sweeping regulation.”

Knodl said the bill was about good governance. 

“It strengthens oversight and ensures our administrative process reflects the voice of the people — not just unelected regulators,” Knodl said.

Knodl also underscored WILL’s economic estimates that reducing red tape by 40 percent in the next three years could deliver more than $68 billion in economic growth by 2037.

“While reform-minded states like Idaho and Ohio are slashing red tape, Wisconsin’s regulatory code has continued to grow,” Knodl said.

Hutton said the legislation preserves essential safeguards while enhancing clarity, predictability, and public accountability in agency rulemaking. Permanent rules would still undergo legislative review, public hearings, and economic analysis, he said, while emergency rules, often issued without those checks, would be constrained by time and scope.

Richard Moore is the author of “Dark State” and may be reached at richardd3d.substack.com.