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Jan. 6, 2006

We have stated many times in our introductory remarks in Tidbits that, in our judgment, the civil justice/liability crisis had become the number one economic development issue in the State of Wisconsin. National attention, by the Wall Street Journal, U.S. Chamber and others, to the damage that has been done to the “litigation atmosphere” in Wisconsin came as testimonial to that assessment. The business community agreed. The economic development community agreed. The Wisconsin Legislature agreed.

Four major bills were passed to respond to the liability crisis. The bills related to: re-establishing the cap on noneconomic damages in medical malpractice cases; product liability reform; standards for the admission of expert opinion evidence; and, re-establishment of traditional tort law by requiring proof of causation in nearly all product liability cases.

Plaintiff lawyers, not surprisingly, did not share the sentiments expressed above. Unfortunately, neither has the Governor, who has now vetoed all civil justice reform bills that have reached his desk.

We can only hope that there is a possibility for these issues to be re-visited in the very near future before Wisconsin’s litigation atmosphere gets even worse.

Policy Developments

Governor Doyle Vetoes Three More Civil Justice Reform Bills
In Milwaukee on Friday, Gov. Doyle vetoed SB-402, legislation that would have prevented businesses or individuals from being held liable for products they did not manufacture, sell, distribute or promote.

Very late Friday afternoon, in the Capitol, Governor Doyle also vetoed: SB 58, product liability legislation that would have put Wisconsin’s standard for product liability in line with 46 other states; and SB 70, which would have heightened the standards for the admission of expert opinion evidence and would have made Wisconsin’s law in this regard consistent with 37 other states and the entire federal system.

Please see the Governor’s press release and veto message, and reaction from Wisconsin Manufacturers and Commerce, Wisconsin Coalition for Civil Justice, and the U.S. Chamber Institute for Legal Reform regarding the veto of SB-402.

Governor Doyle’s State of the State Scheduled
Gov. Jim Doyle will deliver his State of the State Address to a joint session of the Legislature on Tuesday, Jan. 17, at 7:00 p.m. in the Assembly Chambers of the State Capitol. The speech will focus on the Governor’s priorities for the next year, including improving education, expanding access to health care, protecting the environment and creating jobs for the people of Wisconsin.

The Governor has been holding “town hall meetings” to preview initiatives that will be included in his message later this month. Among the overall themes, the Governor did specifically endorse higher math and science requirements for high school graduation.

The speech will be broadcast live with closed captioning on Wisconsin Public Television stations statewide. The speech will also be web cast live via Governor Doyle’s website.

Governor Doyle Signs Economic Development Legislation
On Wednesday, Jan. 4, Gov. Doyle signed 15 bills into law. Two of the bills are aimed at promoting economic development in Wisconsin.

SB-290, (Act 97) makes technical changes to simplify the administration of the Angel Investment Tax Credit and Early State Seed Investment Tax Credit and makes them easier for investors to claim. Senate bill 290, authored by Senator Kanavas and part of the Legislature’s Invest Wisconsin initiative, simplifies the administration of the risk/reward ratio that favors investments in new Wisconsin companies. This law is intended to improve capital investment and technological entrepreneurship in Wisconsin and benefit the state’s emerging high-tech, high growth businesses.

The Governor also signed Assembly Bill 464, as Act 93, which assists cities and counties in the cleanup of additional environmentally contaminated properties (brownfields) so they have the opportunity to be revitalized into productive, job-creating properties.

Other Bills Signed into Law

• SB-41. Definition of biodiesel fuel; labeling, advertising and promotion of biodiesel fuel and biodiesel fuel blends. Act 83

• AB-512. Traffic regulations and traffic control devices at railroad crossings. Act 95.

• AB-593. WHEDA modernization. Act 75

• AB-844. HIRSP reauthorization. Act 74

• AB-783. Duties of real estate brokers and salespersons. Act 87

• SB-426. Various changes in unemployment insurance law. Act 86

• SB-4. Size of county boards and city councils in certain counties and cities. Act 100

• SB-146. Authorizes a county to participate in a municipal revenue sharing agreement. Act 98

• AB-105. State contractual service contracting procedures. Act 89

• AB-627. Electronic voting system standards. Act 92

Upcoming Committee Activity
The Assembly Judiciary is scheduled to act on several bills in Thursday, Jan. 12. Among the bills slated for action are:

• AB-843. Changes proof the plaintiff must provide to recover punitive damages (Wischer v. Mitsubishi.)

• AB-855. Requires damages be paid in frivolous claims. (Affects Supreme Court Order 03-06, which repealed a previous provision, in July 2005).

The Senate Committee on Health, Children, Families, Aging and Long Term Care will hold a public hearing on the licensing of midwives (SB-477) at 10 am on Jan. 12 in Room 412-E.

On Wednesday, Jan. 11, the Senate Committee on Judiciary will hold a public hearing on AB-657 relating to eminent domain and the 2005 Kelo decision from the U.S. Supreme Court, as well as SB-447, relating to punitive damages and the companion to AB 855 referenced above.

The Senate Job Creation, Economic Development and Consumer Affairs Committee will hold a public hearing on Jan 12 in Manitowoc to hear testimony on SB-483, regarding income/franchise tax credit for sales/use taxes paid on purchase of Internet equipment used in the broadband market.

The Senate Committee on DNR regulatory reform has held hearings this week in Arbor Vitae and Cadott, Wisconsin. A third hearing is scheduled for Green Bay on Tuesday, Jan. 10.

Governor Doyle Unveils Ethics Reform Package
Gov. Doyle recently released an ethics reform package that includes the following proposals:

• Banning all fundraising during the budget process by state office incumbents and challengers alike, from the date of introduction of the budget until it is signed into law;

• Placing a one-year ban on lobbying their respective branches of government by legislators, legislative staffers, former governors, and all gubernatorial political appointees once they leave office;

• Banning the use of campaign contributions or state tax dollars to pay for legal defense fees by someone who’s been criminally charged with violating state ethics or campaign finance laws;

• Offering 100 percent of public funding for Supreme Court candidates who agree to limit their campaign spending; and

• Renewing the call for SB-1, which would merge the Wisconsin Elections and Ethics Boards. This bill passed the Senate Nov. 1, 2005 with various amendments and if passed by the full legislature, would provide greater enforcement power over our elections and ethics laws.

Governor Announces Transportation Funding for Local Counties
As part of his ongoing "Grow Wisconsin" initiative to support economic development and encourage job growth, Gov. Jim Doyle has announced that quarterly checks totaling nearly $98.7 million for General Transportation Aids, Connecting Highway Aids, and Expressway Policing Aids have been conveyed to Wisconsin units of local government.

The Governor said that the January payments from the Wisconsin Department of Transportation (WisDOT) included $95.2 million in General Transportation Aids to 1,923 units of government; $3.2 million to 122 municipalities for Connecting Highway Aids; and $272,700 to Milwaukee County for Expressway Policing Aids.

General Transportation Aids (GTA) return to local governments roughly 30 percent of all state-collected transportation revenues (fuel taxes and vehicle registration fees) - helping offset the cost of county and municipal road construction, maintenance, traffic and other transportation-related costs.

WISTAX Examines Migration Patterns Using 2000 Census
Evidence of both brain drain and retiree flight from Wisconsin is contained in a new study from the Wisconsin Taxpayers Alliance (WISTAX).

The report, "Moving In, Moving On: Migration in Wisconsin," also found that adults in their 30’s and 40’s, often with children under 18, were more likely to move to the Badger State than leave.

WISTAX, now in its eighth decade, is a nonprofit, nonpartisan organization dedicated to government research and citizen education.

Wisconsin Politics

Green Attacks Governor’s Veto of SB 402 as Favoring Plaintiff Lawyers Over Jobs
Congressman Mark Green, a Republican candidate for Governor, criticized Governor Doyle’s veto of State Senate Bill 402 (see above) as choosing trial lawyer paydays over economic development. Green, who authored a number of civil justice reform measures when a member of the State Assembly and Chair of the Judiciary Committee, issued his statement soon after the Governor announced his veto.

Bablitch Confirmation Supported
On Wednesday, January 4, following a public hearing, the Senate Committee on Veterans, Homeland Security, Military Affairs, Small Business and Government voted 5-0 to recommend that the full Senate confirm the appointment by Gov. Doyle of Steve Bablitch as Secretary of the Department of Administration.

Republican to Challenge Kohl
A Madison man is the first Republican to announce plans to challenge Democratic Sen. Herb Kohl this fall. Dave Redick, a former Silicon Valley entrepreneur, is the managing partner of Badger Ventures.

Redick holds a BS-Engineering from the University of Michigan, Ann Arbor, and an MBA from Santa Clara University, Santa Clara, Calif.

Political News

Doyle vetoes bill that he says protects lead paint manufacturers: Milwaukee Journal Sentinel, Jan. 6, 2006.

Doyle presents ethics changes: Milwaukee Journal Sentinel, Jan. 6, 2006.

Ellis decides against making run for governor: Green Bay Press-Gazette, Jan. 6, 2006.

Candidates split on how to control taxes, spending: Milwaukee Journal Sentinel, Jan. 6, 2006.

Doyle touts manufacturing, job training: Appleton Post-Crescent, Jan. 6, 2006.

Sessions focus on 'Paper: An Industry in Transition': Green Bay Press-Gazette, Jan. 6, 2006.

Where are the workers? (opinion): Milwaukee Journal Sentinel, Jan. 5, 2006.

Common sense on lead paint (opinion): Milwaukee Journal Sentinel, Jan. 5, 2006.

Governor's job is top (but not the lone) prize: Milwaukee Journal Sentinel, Jan. 3, 2006.

Gubernatorial hopeful unveils agenda: Milwaukee Journal Sentinel, Jan. 3, 2006.

Doyle should veto new rules on boat docks (opinion): Sheboygan Press, Jan. 2, 2006.

a Crosse to focus on development in 2006: La Crosse Tribune, Jan. 3, 2006.

Lawsuit abuse and Doyle's key decision (opinion): Milwaukee Journal Sentinel, Jan. 3, 2006.

Ethanol equipment boom boosts business for state manufacturers: Fond du Lac Reporter, Jan. 3, 2006.

Transmission line company hopes to grow in other states: Wausau Daily Herald, Jan. 3, 2005.

Resolve to pass state smoking ban (opinion): Wausau Daily Herald, Jan. 3, 2006.

UW grows animal-free stem cell lines: Milwaukee Journal Sentinel, Jan. 2, 2006.

Positive prediction: River Valley Business Report, Jan. 2, 2006.

Lester P. Voigt, first secretary of Wisconsin DNR, dies: Janesville Gazette, Jan. 2, 2006.

Teenager can sue over birth injury: Milwaukee Journal Sentinel, Dec. 31, 2005.