Political Tidbits

Wisconsin political news for clients and colleagues.

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Jan. 25, 2008

As noted below, the 2007-08 legislative session is in its final stages. A session that has been dominated by a drawn-out, and sometimes contentious, budget debate promises to focus its remaining days on issues aimed at stimulating Wisconsin’s economy and helping our state’s competitive position vis a vis business expansion and location decisions. Democrat Governor Jim Doyle and legislative leaders, including Speaker Mike Huebsch and the Assembly Republican majority, having been touting their respective economic development plans, which include enough similarities to suggest the likelihood of significant progress on the economic development front.

With the split Legislature (and an election year), it is likely that many high-profile bills will pass only one house without action in the other. Some of these issues are likely to sound familiar as issues that were included in the earlier budget debate but which did not survive the ultimate compromise proposal.

Tidbits will soon turn its focus to election year issues and candidates. The first important statewide election will be that for a seat on the Supreme Court. We will provide biographical data and other material in the near future on the two candidates (Justice Louis Butler and Judge Mike Gableman) who will face-off in the spring election in April.

Policy Developments

Gov. Jim Doyle Delivers Sixth State of the State Address
In his sixth State of the State Address, Gov. Jim Doyle presented his vision of the state’s current condition and need for new initiatives, focusing on economic development, increasing renewable energy, and spending for health care insurance and education.

Economic Development

Provide tax credits to reward companies that significantly increase R&D spending.
Modernize meat and dairy processors, invest in cheese cooperatives, fund nutrient management and land conservation programs and enter growing international markets for whey.

Renewable Energy

Provide tax credits for biodiesel fuel producers.
Require oil companies to provide renewable fuel.

Health Care

Create BadgerChoice to provide health insurance to employees of small businesses.
Require insurance companies to cover treatment for autistic children.
Make all public places completely smoke free.

Education

Require three years of math and science for high school graduation.
Invest in a compensation system that rewards teachers.

Republicans and Economic Development
Assembly Speaker Mike Huebsch (R-West Salem) responded to Doyle’s address saying he hopes to move forward with the Legislature and the Governor in attracting businesses to Wisconsin and creating family supporting jobs as well as easing the costs of health care. The Assembly Republicans are expected to offer some additional economic development proposals.

Additionally, Sen. Kanavas has unveiled his Invest Wisconsin 2.0 plan. There are ten bills in the plan, including a nanotechnology tax credit, capital gains reinvestment in a certified Wisconsin-based business, product liability reform, education tax credit and jobs preservation act.

Invest Wisconsin 2.0 Brochure

Invest Wisconsin 2.0 List of Legislative Content (as of January 23, 2007)

Press Release: Kanavas Unveils Invest Wisconsin 2.0

State Tax Collections Down – Revenue Shortfall Possible
The Director of the Legislative Fiscal Bureau has issued a memorandum advising members of the state budget-writing committee that State tax revenues could fall $300 million to $400 million short over the next 17 months.

At the beginning of each year, the LFB provides preliminary information regarding general fund tax revenue estimates based on a review of year-to-date tax collections data and the national economic forecast. Tax collections were below expectations and the current economic forecast shows areas of concern.

Department of Administration Secretary Mike Morgan said in response that the state will need final numbers on the impact of the slowing national economy before determining what the next steps should be.

In a separate statement on the revenue condition, Speaker Mike Huebsch said that government will have to control its spending and not raise taxes as it tries to deal with the looming shortfall.

Legislature Nearing End of 2007 Biennial Session
The legislature will be on the floor from now through January 31, 2008. The next scheduled general business floorperiod will be February 19 to March 13, the last of the 2007 biennial session.

There will be a limited-business floorperiod May 6-8 in which action is limited to revisor’s bills, reconciliation bills, state employee contract bills and resolutions. There will also be a veto review session May 27-28.

Governor Signs Several Bills into Law
Cable television franchise: On December 21, Governor Doyle signed 2007 Assembly Bill 207, creating 2007 Wisconsin Act 42 with partial vetoes. The act establishes a statewide video franchise, repealing state laws that allow municipalities to grant cable franchises and requiring cable companies to obtain a franchise through the state Department of Financial Institutions.

Municipal boundary disputes: On January 4, Governor Doyle signed 2007 Assembly Bill 254, developed by the Legislative Council Special Committee on Municipal Annexation, and relating to municipal boundary agreements. It became 2007 Wisconsin Act 43.

Recent Senate and Committee Action
The Senate voted (18-15) (17 Democrats and one Republican for and 14 Republicans and one Democrat against) to pass SB 138, allowing a parent and adult children as eligible to recover for loss of society and companionship as the result of medical malpractice.

[While loss of society and companionship is always an emotional issue, this is a legislative created recovery theory that is not based on common law and several groups oppose this legislation including CTCW, WCCJ, WEDA and the Wisconsin Medical Society.]

SB-150 would ban smoking in taverns, restaurants, and other workplaces currently exempted from statewide smoking prohibitions. The Senate Committee on Public Health, Senior Issues, Long Term Care and Privacy voted to pass the bill out of committee on January 11 and it will now go to the full Senate.

Assembly Committee Action
Health and Healthcare Reform

AB-71: Requires that patients be informed of health care facility use charges and that the charges be identified separately on bills. The committee adopted Amendment 1 and voted for passage (13-0).

Energy and Utilities

AB-346: Repeals limits on construction of new nuclear power plants. The committee voted (8-2) to approve legislation repealing state limits on new nuclear power plants. Current restrictions make it difficult to win approval for construction of new plants

AB-347: Requires the PSC to investigate future electric supplies after the operating licenses of nuclear power plants in the state expire. The committee recommended passage (10-0).

AB-515: Regulates certain suppliers of liquefied petroleum gas, applicability of the statewide system for notification of the location of transmission facilities. The committee recommended passage (10-0).

Natural Resources

AB 504: Would provide that the Secretary of the Department of Natural Resources would be appointed by the Natural Resources Board, rather than the governor. The Assembly Committee on Natural Resources recommended passage of the bill as amended, 13-1.

State Branding Bill Passes in the Assembly
AB 265, which would require the Department of Administration to study the feasibility of developing a Wisconsin Brand, passed Assembly Jan. 23 on a voice vote.

The measure would create what is called a "blue-ribbon commission" run by the DOA to create a new state brand that would assist tourism marketing efforts and also attract businesses and students to Wisconsin.

Assembly Committee Hears Bill to Address Cable Disputes
Green Bay Packers and NFL Network executives testified at a hearing on Jan. 22 in support of Fair Access Networks (FAN) legislation, which would establish an arbitration process to settle disputes between independent networks and cable providers.

The hearing before the Assembly Committee on Energy and Utilities was held to consider Assembly Bill 604, also known as the “Fair Access to Networks” bill, or FAN. The proposal would establish an arbitration process to settle disputes between cable providers and independent programmers, including NFL Network.

State Assembly Approves AED Training and Blood
Donor Initiatives
On Wednesday, Jan. 23, the State Assembly approved Assembly Bill 262, authored by Rep. Jona Ballweg and Senator Kathleen Vinehout, which requires certain persons to successfully complete a course on the use of automated external defibrillators (AEDs).

The bill requires chiropractors, dental hygienists, dentists, licensed midwives, athletic trainers, and massage therapists and bodyworkers to demonstrate current proficiency in the use of an automated external defibrillator in order to be licensed or certified.

According to proponents, training is necessary in order to understand the role of defibrillation in the broader context of the cardiac chain of survival.

The Assembly also approved Assembly Bill 539, authored by Rep. J.A. “Doc” Hines and Senator Fred Risser, which allows blood donations from 16 year olds with parental consent.

According to the American Red Cross, exposure to voluntary blood donation at high school is an important opportunity for blood banks to educate potential donors on the benefits of a lifetime of committed service to the community through donation.

Committee Hears Testimony on New Ethanol Mandate
At a public hearing on Jan. 16, the Assembly committee on Biofuels and Sustainable Energy heard testimony on AB 682, which mandates that the percentage of motor fuel sold in Wisconsin be at least 10 percent renewable beginning in 2009, increasing to 25 percent renewable by 2025.

Citing higher gas prices that would hurt consumers and businesses as a result of the bill, Wisconsin Manufacturers and Commerce testified in opposition.

Seventh Circuit Certifies “All Sums” Case to Wisconsin
Supreme Court
On Tuesday, January 22, the Seventh Circuit Court of Appeals certified an insurance coverage case involving asbestos claims to the Wisconsin Supreme Court seeking guidance on three primary issues raised by the parties. (Plastics Engineering Company v. Liberty Mutual Insurance Company.) The three issues:

What constitutes an "occurrence" in an insurance contract under these circumstances? Insurance policies limit liability to a certain amount per "occurrence."
Does the "other insurance" language of Wisconsin Stats. sec. 631.43(1) apply to insurance policies issued in successive years or only to concurrent policies? This statute has been interpreted numerous times to prohibit "anti-stacking" insurance policy provisions.
Should Wisconsin adopt an "all sums" or "pro rata" allocation of insurer liability under these circumstances? This case involves injuries spanning several years with each policy year potentially having different primary, umbrella, and excess liability carriers on the risk. Under the "all sums" approach, the insured can choose one or more policy years and exhaust ("vertically") the coverage of the primary, umbrella, and excess liability carriers until fully indemnified, and leave it to the insurers who have paid on the claim to seek contribution from other carriers on the risk during the effective years. Under the pro rata approach, the policy limits for all of the primary carriers are exhausted first, then the umbrella carriers, and then the successive excess liability layers (horizontal exhaustion).

The Seventh Circuit expressly did not limit the Wisconsin Supreme Court's review to these three issues.

Rape Victims Bill Passes State Assembly
On Jan. 23, the Wisconsin State Assembly voted 61-35 for passage of Assembly Bill 377, the Compassionate Care for Rape Victims bill.

This legislation, which has already been passed in 10 states, would require all hospitals to provide information and access to emergency contraception in the event of a rape, as well as provide information to victims about their rights and options when reporting crimes.

Currently Winnebago County is one of only 22 counties that have a hospital required to dispense emergency contraception without exceptions.

Wisconsin Politics

U.S. Representatives Endorse Wisconsin Supreme
Court Candidates
On Jan. 21, three members of Wisconsin’s Congressional Delegation threw their support behind Judge Michael Gableman in the race for Supreme Court. U.S. Representatives Jim Sensenbrenner, Thomas Petri, and Paul Ryan all signed on to endorse the Burnett County judge.

Judge Gableman was appointed Burnett County Circuit Court in 2002 and was elected to the bench in 2003. Prior to his experience on the bench, Judge Gableman was appointed District Attorney for Ashland County by Gov. Tommy Thompson in 1999 and subsequently won election to the position.

Congresswoman Tammy Baldwin and Congresswoman Gwen Moore this week announced their endorsements of Supreme Court Justice Louis Butler for retention to the state’s highest court.

Appointed by Governor Jim Doyle to the Wisconsin Supreme Court in 2004, Justice Butler is seeking a full 10-year term in the April 2008 elections. Prior to being appointed to the Supreme Court, Justice Butler served as a Milwaukee County Circuit Court Judge.

The Supreme Court election will be April 1, 2008.

The Federal Nominating Commission Recommends Five for the Pending Vacancy on the U.S. District Court for the Western District of Wisconsin
The finalists for the seat to be vacated by Judge John Shabaz are Milwaukee Circuit Court Judge Michael B. Brennan, Waukesha County Circuit Court Chief Judge J. Mac Davis, U.S. Attorney Erik Peterson of the Western District, Stephen J. Meyer, the defense attorney for former Assembly Speaker Scott Jensen, and Eau Claire County Circuit Court Judge Lisa Stark.

Political News

State may face $300M to $400M tax shortfall: La Crosse Tribune, Jan. 24, 2008.

Wis. lawmakers announce deal to keep virtual schools open: Janesville Gazette, Jan. 24, 2008.

Lead-test mandate isn't met: Milwaukee Journal Sentinel Jan. 24, 2008.

Emergency contraception bill OK'd by Assembly: The Madison Capital Times, Jan. 23, 2008. Doyle touts health pool for small businesses: Eau Claire Leader-Telegram, Jan. 23, 2008.

BadgerChoice idea earns kudos: Eau Claire Leader-Telegram, Jan. 23, 2008.

Governor's unfinished business worth more exploring (opinion): Oshkosh Northwestern, Jan. 23, 2008.

Milk cost predicted to rise: Wisconsin State Journal, Jan. 23, 2008.

Milwaukee job growth slowing: Milwaukee Journal Sentinel, Jan. 23, 2008.

Kreitlow defends vote to limit medical malpractice awards: Eau Claire Leader-Telegram, Jan. 23, 2008.

Medicaid change to cost state schools: Milwaukee Journal Sentinel Jan. 20, 2008.

Enrollment in state insurance plan pushed: Madison Capital Times, Jan. 17, 2008.