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Jan. 30, 2004
The
Wisconsin
Legislature, which is scheduled to conclude its 2003-04
legislative session on March 11, has at the very most, 12 floor
session days left to wrap up what has already been a very
productive session. The Legislature will have floor session days
during four of the next six weeks and the other two weeks (2/9 and
2/16) will be devoted to committee activity and the tough job of
determining what remaining issues will make the cut and have a
chance to become Wisconsin law. Economic development and high
profile election year issues will likely dominate the remaining
days of the 2003-04 session.
While there was minimal
floor activity during the past week, the Joint Committee for Review of
Administrative Rules exercised its rarely used statutory authority to
suspend (in part) a highly controversial Department of Transportation rule
known as Trans 233. This rule has come under attack from developers,
landowners, and economic development professionals since its adoption in
1999. Critics of the rule have contended that the rule has stifled
development in many instances, has violated personal property rights, and
has exceeded the authority granted to the DOT by the Legislature. The goal
of the Joint Committee’s action is to force the DOT and interested parties
to work together to craft a rule that meets the needs of DOT without
adversely impacting legitimate development and private property rights.
Policy Developments
Legislative
Action This Week
Assembly
On Tuesday, January 27, the Assembly took action on several bills,
and three rules. Among the bills passed were:
-
AB 591, relating to recording and filing documents with the offices of
register of deeds and the Department of Financial Institutions; and
-
SB 46, relating to the designation and marking of certain highways and
bridges.
Senate
On Wednesday, January 28, the Senate passed several bills, including:
-
SB 87, relating to limiting the authority of cities and villages to
annex territory and specifying the boundaries for certain annexations;
-
SB 279, relating to licensing and educational requirements for loan
originators; and
-
SB 323, relating to changing the procedures for the incorporation of
cities and villages, creating a board to review incorporation petitions,
and changing annexation procedures affected by incorporation petitions.
Assembly Reschedules
Override Vote for Next Week
The Assembly calendar for Thursday, January 29, was cancelled. The Thursday
calendar was expected to include a vote on an override of Governor Doyle’s
Nov. 18, 2003
veto of
SB 214, the Personal Protection Act of 2003 (relating to authorization
of concealed carry of weapons). On January 22 the State Senate voted
23-10 to override the Governor’s veto. The Assembly is scheduled to
reconvene on February 3 to take up last Thursday’s calendar, including a
vote on the override.
Other items scheduled for
next Tuesday include:
-
AB 608, relating to making changes to the comprehensive planning
statue known as Smart Growth;
-
AB 615, relating to requiring that the Department of Transportation
purge certain first convictions of Driving While Intoxicated after 10
years;
-
AB 681, relating to several changes to insurance law, including
prohibitions;
-
AB 683, relating to broadening the number of financial institutions,
from only one to potentially several, who may serve as vendors of the
college savings program known as EdVest;
-
AB 673, relating to the deceptive or misleading use of a name that is
deceptively similar to the name of a state-chartered bank, savings bank,
savings and loan association, or credit union, and providing a penalty;
and
-
AB 755, relating to electronic transactions and records.
Administrative Rules
Committee Suspends Trans 233 - In Part
On Wednesday, January 28, the Wisconsin Legislature’s Joint Committee for
the Review of Administrative Rules (JCRAR) voted to suspend portions of a
rule that regulates development activities along state trunk highways. Trans
233 is a comprehensive rule giving DOT authority to regulate development
lands that abut state trunk highways or connecting highways. Private
property rights and economic development concerns, coupled with a belief
that DOT had exceeded its statutory authority, formed the basis for JCRAR’s
action which returns the state of the law to pre-1999 status. The portion of
the rule not suspended clarifies DOT’s authority over land use along state
highways. (See the Wisconsin Department of Transportation’s
press release following JCRAR’s action on Trans 233. See also Sen.
Leibham’s
press release.)
Proposed Constitutional
Amendment on Government Spending to Receive Changes
It was reported this week that AJR 55, the proposed constitutional amendment
to overhaul local government spending by requiring taxpayer approval of any
tax increase, will receive some major revisions before seeing Assembly
action. Key members of both Houses have expressed serious concerns about the
current proposal’s potential impact on bonding and other economic
development proposals. Revisions are underway and will be reported in
Tidbits as they come to light.
Governor Signs Bill Giving Tax Break to
Organ Donors
Governor Doyle is signing
AB 477 on Jan. 30 - the landmark legislation to create an individual
income tax deduction for individuals who donate a human organ as a living
donor. The legislation is the first of its kind to be passed anywhere in the
nation, despite several states who have introduced the concept. See bill
author Rep. Wieckert’s
statement regarding the bill’s passage by the Senate and his
statement regarding the Governor’s January 30th bill signing.
Obesity Bill Passes through Assembly Committee
On Monday, January 26,
AB 595 received a public hearing from the Assembly Committee on
Judiciary. The Committee took executive action on this bill on Thursday,
January 29, voting 5-3 in favor of passage.
Assembly Committee Favors
Passage of Aging Driver Bill
On Thursday, January 29, the Assembly Committee on Transportation voted 15-1
in favor of passing
AB 575, as amended. (The Committee voted unanimously to recommend
adoption of Substitute Amendment 1 to AB 575.) The bill makes changes to
Wisconsin law regarding operator's license renewals for aging drivers,
including imposing fees for certain driving skills tests.
In a related discussion,
the Wisconsin Department of Transportation is readying to launch its new
pilot program to assist elderly drivers, called the Enhanced Mobility Pilot
Project. Please see the Hamilton Consulting Group’s
Update summarizing this program.
Senate Committee Favors
Passage of ‘Conscience Clause’ Bill
On Thursday, January 29, the Senate Committee on Health, Children, Families,
Aging and Long Term Care voted 7-2 in favor of passage of
AB 67, as amended. The bill relates to providing health care workers the
authorization to ‘opt out’ of providing certain heath care services based on
the individual’s conscience concerns about the particular service.
Senate Committee to Hear
Bonding Bill
The Senate Select Committee on Job Creation has scheduled a public hearing
and possible executive session on
SB 384, relating to authorizing technical college districts to issue
revenue bonds for the purpose of providing training services and facilities
to businesses to be reimbursed by an income tax increment.
Assembly Committee to Hear
Bill Addressing Bank Lawsuits
The Assembly Committee on Financial Institutions has scheduled a public
hearing and possible executive session on
AB 731, relating to a prohibition against certain lawsuits filed against
financial institutions for alleged promises or commitments made when such
promises are not made in writing.
Supreme Court Accepts New
Cases
On January 28, the Wisconsin Supreme Court
announced it had voted to hear 22 new cases. (See the link to the
press release for names of the cases, brief summaries, and the counties of
origin.) Issues the court will be asked to rule on include:
-
Are caps on loss of
society and companionship in a wrongful death case constitutional?
-
Did the Court of Appeals
err when it found that the manufacturer of a foundry sand could not be
held strictly liable for a worker’s silicosis because the product had
undergone a substantial change?
-
Does Wisconsin’s “Lemon
Law” require a consumer to use only specific statutory terminology when
requesting a comparable vehicle in exchange for an alleged “lemon”?
State Appeals Circuit Court
Ruling Invalidating Airline Tax Breaks
On Wednesday, January 28, State Attorney General Peg Lautenschlager
announced she would appeal the Nov. 7, 2003 Circuit Court ruling
invalidating the Wisconsin statute authorizing a property tax exemption for
hub airlines, which directly impacts Midwest Airlines and Air Wisconsin. The
statute, enacted by the 2001 Legislature, was intended to stimulate economic
development by creating a competitive environment for airline companies
whose hubs are located in Wisconsin.
The circuit court ruling
found that this statute violated the Commerce Clause of the Constitution.
The Attorney General, however, disagrees, and filed the appeal on this basis
as well as on grounds that the Wisconsin Legislature has determined that the
tax break is critical for keeping good jobs in Wisconsin. The Attorney
General’s action was urged and is supported by numerous state legislators of
both parties who signed a letter requesting an appeal immediately following
the November ruling.
Wisconsin
Politics
Senate Confirms
Executive Director of WHEDA
On Wednesday, January 28, the Senate voted 32-1 to confirm Antonio
Riley as Executive Director of the Wisconsin Housing and Economic
Development Authority.
Federal Developments
Bush
Administration to Force Clean Up of Coal-Fired Plants
On January 21, the Environmental Protection Agency (EPA) announced
it was bringing court action, under the New Source Review (NSR)
enforcement provision of the Clean Air Act (CAA), to force clean
up of several aging coal-fired power plants. This action is
seemingly in controversion of the Administration’s efforts, over
the past year, to lessen the severity of the NSR requirements and
make it easier for aging power plants to update their equipment
without finding themselves in noncompliance. When announcing the
lawsuits, however, EPA Administrator Mike Leavitt stated that the
Administration plans to aggressively enforce the existing NSR rule
until the revised rule, currently pending a determination of
legality in another federal lawsuit, is found acceptable.
Senate Passes Pension Bill
On Wednesday,
January 28, the U.S. Senate passed The Pension Stability Act, legislation to
reform pension plan funding by providing a short-term, two-year fix to
protect employers from what could become artificially inflated pension
contributions. Business groups and unions support the legislation.
As passed by the House last
fall, H.R. 3108 would provide two years of relief for all defined benefit
pension plans facing required contribution levels that may be artificially
inflated. The bill provides relief by replacing the discontinued 30-year
Treasury bond interest rate with a rate based on a composite of long-term
corporate bonds for years 2004 and 2005.
The Senate passed the bill
with an amendment that separately would allow airlines, steelmakers and
others with underfunded plans who must make catch-up deficit reduction
contributions to waive large parts of their catch-up pay over the next two
years. They could waive 80 percent of those payments the first year and 60
percent the second year.
The bill still must be
reconciled with the House version and ironed out with the Administration,
which is balking at a provision giving special treatment to airlines and
steelmakers with chronic pension underfunding problems.
Political News
We all have a stake in keeping Wisconsin’s economy vibrant
(opinion): Fond du Lac Reporter, Jan. 29, 2004.
Court rejects Port plants' approval: Milwaukee Journal Sentinel, Jan.
30, 2004.
More tests for older drivers (opinion): Milwaukee Journal Sentinel, Jan.
30, 2004.
Defendants must be told about state law: St. Paul Pioneer Press, Jan.
30, 2004.
Keeping jobs in Madison (opinion): Madison Capital Times, Jan. 30, 2004.
GM to invest $175 million in Janesville plant: Janesville Gazette, Jan.
29, 2004.
Metro joblessness up in December: Appleton Post-Crescent, Jan. 29, 2004.
Wind turbine suit against WPS set for trial by year’s end: Green Bay
Press-Gazette, Jan. 29, 2004.
State to appeal ruling against property tax break for airlines:
Janesville Gazette, Jan. 29, 2004.
Vote over concealed weapons delayed again: Milwaukee Journal Sentinel,
Jan. 29, 2004.
Venture
capital investments in state firms drop to 8-year low: Milwaukee
Journal Sentinel, Jan. 28, 2004.
Fight over state air pollution rights comes to public: Racine
Journal Times, Jan. 28, 2004.
Solberg stepping down from DNR board: St. Paul Pioneer Press, Jan.
28, 2004.
U.S. Senate candidate stops in La Crosse: La Crosse Tribune, Jan.
28, 2004.
Push for
spending amendment revives taxes debate: Milwaukee Journal Sentinel,
Jan. 26, 2004.
Stampede
for House seat begins: Milwaukee Journal Sentinel, Jan. 26, 2004.
Wisconsin: Open for business (opinion): Wisconsin State Journal,
Jan. 23, 2004.
George
pleads guilty to fraud: Wisconsin State Journal, Jan. 23, 2004.
Two cars and
one view: Milwaukee Journal Sentinel, Jan. 25, 2004.
State Sen. Dave Hansen column: Economic improvement is key: Green
Bay Press-Gazette, Jan. 25, 2004.
State Rep. Becky Weber column: Fighting tax increases top priority:
Green Bay Press-Gazette, Jan. 25, 2004.
State manufacturing jobs off 13 percent since 1999: Madison Capital
Times, Jan. 23, 2004.
Upcoming Fundraisers
Sunday, February
1, 2004:
Monday, February 9, 2004:
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