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Feb. 6, 2009

A week for delays, but action seems imminent as the U.S. Senate continues to debate the stimulus package. A final resolution is expected in the next couple of weeks, but the extended process means Wisconsinites will have to wait to view the final details of the State Budget as Governor Doyle has pushed back his address by a week to February 17.

State legislative action has heated up as the Senate heads to the floor next week and a slew of new bills have been introduced. Prospects for a budget adjustment /state stimulus package are high and we could see a bill as early as next week.

Wisconsin Developments

Doyle Delays Budget Message
Gov. Jim Doyle has delayed delivery of his Budget Message to the Legislature until Feb. 17. He was originally scheduled to deliver the message Tuesday, Feb. 10.

President Obama has said he wants Congress to pass an economic stimulus plan by February 16. Doyle has said he will wait for the federal economic stimulus package before offering his budget, which is expected to be adjusted to reflect federal money directed to Wisconsin. Preliminary estimates are Wisconsin will get about $3 billion in federal money.

Senate Floor Session Set for Feb. 10
The Senate has scheduled a tentative calendar for Tuesday, Feb. 10, which includes a bill to increase the minimum wage and a long list of appointments including that of state Commerce Secretary Dick Leinenkugel.

• SB-1: Increases the minimum wage to $7.60 and provides for inflation indexing.

• SB-2: Makes payment of unpaid wages a priority when a company goes out of business.

Hearing on Autism Bill Scheduled
The Senate Public Health, Senior Issues, Long-Term Care, and Job Creation Committee will hold a public hearing on Senate Bill 3 on Monday, February 9. Committee vote on the bill is scheduled for Tuesday morning, Feb. 10.

SB-3, known as the “Autism Bill,” requires insurance companies to cover autism treatment. This bill is similar to ones that were introduced and narrowly defeated in the last legislative session. Gov. Jim Doyle called on lawmakers to pass the bill at a press conference held this week, in conjunction with legislative authors Sen. Robson and Rep. Hixson.

The Governor also announced suggested changes to expand the coverage requirements to at least $60,000 per year for intensive therapy and at least $30,000 per year for post-intensive therapy. Those changes are expected to be incorporated as a substitute amendment for the bill.

Critics contend such coverage could drive up insurance premiums. The Employee Trust Fund has indicated the bill could cost state and local government in excess of $10 million per year. Costs on private sector premiums associated with the Governor’s changes have not yet been published.

Committee Holds Hearing on SB-9
The Senate Committee on Judiciary, Corrections, Insurance, Campaign Finance Reform, and Housing heard testimony this week on Senate Bill 9, which would overturn the Wisconsin Supreme Court’s July 2008 decision in Below v. Norton.

In Below, the Wisconsin Supreme Court ruled that the economic loss doctrine - which seeks to preserve the distinction between contract and tort claims - barred a common-law tort claim for intentional misrepresentation in the sale of residential real estate.

SB-9, sponsored by Sen. Jon Erpenbach (D-Waunakee), would amend Wis. Chap. 895 by adding a tort cause of action for an intentional misrepresentation made by the seller of real estate. SB-9 would give a buyer who alleges fraud or intentional misrepresentation the ability to recoup not only the economic value of the home, but also punitive damages.

The Wisconsin Defense Counsel (formerly the Civil Trial Counsel of Wisconsin), opposed the bill. Citing the reasons by the Supreme Court in its majority’s decision, the Wisconsin Defense Counsel stated that buyers already have statutory and contractual remedies under current law.

Vinehout Announces Health Insurance Legislation
Sen. Kathleen Vinehout (D-Alma) and Wisconsin Insurance Commissioner Sean Dilweg recently announced a package bill dealing with health insurance regulations.

Among the proposals offered are those that would limit the pre-existing condition exclusion period for individual health insurance coverage to one year; allow parents to cover their unmarried adult children up to age 27; and, allow for independent review of rescissions and pre-existing exclusion determinations.

For more information on the proposals and the bill language, click here.

Robson Proposes Change in Underage Drinking
Sen. Judy Robson (D-Beloit) has introduced a bill changing the law on underage persons getting alcoholic beverages. Current law allows parents, guardians or spouses 21 and over to purchase alcoholic beverages for underage persons.

Under Robson’s bill (SB-30), the same persons could purchase beverages for underage persons, but they would be required to be at least 18. The bill was referred to the Senate Children and Families & Workforce Development Committee.

Several other drug and alcohol related bills currently in committees include:

• SB-32: Reduces to 0.02 the PBAC for persons with one or more OWI convictions.

• SB-33: Prohibits a person whose license is suspended for OWI from renting or leasing a vehicle.

• SB-36: Allows, now requires, courts to suspend driving privileges for persons convicted of drug violations.

Lawmaker to Propose Economic Development Bill
Sen. Julie Lassa (D-Stevens Point) has announced she will introduce a bill to streamline a number of state tax credit programs designed to stimulate job growth. The bill will consolidate five separate development zones into one program that can provide tax incentives anywhere in the state. The Department of Commerce would allocate credits under the program up to the amount remaining in the five existing programs.

Other Legislative and Committee Activity
Following are some recently introduced bills that have been referred to committee.

• SB-16: Permitting a mother to breast-feed in any public or private location where she is otherwise authorized to be. To Public Health, Senior Issues, Long-Term Care, and Job Creation.

• SB-27: Health insurance coverage of hearing aids and cochlear implants for persons under 18. To Health, Health Insurance, Privacy, Property Tax Relief & Revenue.

• SB-28: Excludes from taxable income gains from a Wisconsin business. To Health, Health Insurance, Privacy, Property Tax Relief & Revenue.

• SB-35: Changes in first dollar property tax credit distribution. To Health, Health Insurance, Privacy, Property Tax Relief & Revenue.

• SB-45: Creates a nonrefundable individual income tax credit for certain amounts relating to health savings accounts that may be deducted from, or are exempt from, federal income taxes. To committee on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue.

Rhode Island Judge Orders the State to Pay Reimbursement to Paint Companies
On Jan. 22, 2009, a Rhode Island Superior Court Judge ordered the State of Rhode Island to reimburse three paint companies, who were victorious on appeal, for the costs of two court-appointed public health experts and their assistants. The public health experts were hired to “evaluate the cleanup plan” after a jury verdict favoring the state, but while the appeal was pending.

The judge proclaimed that “The entire foundation for the defendants’ liability in this case is based on a jury verdict that has been reversed by the Rhode Island Supreme Court.” The Rhode Island Supreme Court’s decision was 4-0. The Court’s decision ended the cleanup before it began, but the experts had already been paid.

The State of Rhode Island had hired a private plaintiffs’ law firm to help try the case - on a contingent fee arrangement. It is unclear as to whether the private law firm will be responsible for all, some or none of the costs. The state has claimed sovereign immunity although that is also being disputed.

The defendant companies are also seeking to recover additional monies that they spent on the nine-year court battle. The costs of this prosecutor/plaintiff lawyer - initiated “nuisance” lawsuit were substantial to the state, as well as to the companies and their shareholders in terms of dollars and other resources.

Please see Jim Hough’s Update for previous lead paint cases and developments.

2009 Governor's Conference on Economic Development Held in Madison
Lieutenant Governor Barbara Lawton gave the opening address at the 2009 Governor’s Conference on Economic Development on Feb. 5, 2009, at the Monona Terrace Convention & Community Center. Speakers examined both global and local examples of economic development solutions that are working in the areas of finance, workforce, education and healthcare.

The annual event is sponsored by the Wisconsin Economic Development Association with partners Forward Wisconsin and the Wisconsin Department of Commerce. More than 300 economic development professionals from around the state have registered to attend.

2009 Business Day in Madison Feb. 11
The Seventh Annual 2009 Business Day in Madison - Wisconsin's premier legislative event - is expected to bring more than 1,000 business leaders together with policymakers to discuss the most important issues facing our state. The event provides an opportunity for the business community to communicate with legislators and elected government officials on how to strengthen the economy and create jobs in Wisconsin.

Speakers include Dr. Barry Asmus, senior economist, National Center for Policy Analysis, and Dr. Charles Krauthammer, columnist for Washington Post and Time magazine and Pulitzer Prize-winning commentator.

Gov. Jim Doyle has been invited to address the group on the challenges ahead for Wisconsin and the business community in dealing with a projected $5 billion state budget deficit.

Federal Developments

Obama Expands Health Insurance Program
On Feb. 4 President Obama signed into law a bill expanding the State Children’s Health Insurance Program to include about 4 million more kids.

In January the House passed H.R. 2 on a vote of 290-138. The Senate passed H.R. 2 by a 66-32 margin, but with two amendments. The bill authorized spending an added $32.8 billion to expand the health coverage program to include about 4 million more children, including coverage of legal immigrants. A cigarette tax increase of 62 cents, bringing the total tax on a pack of cigarettes to $1.01, will fund the expansion of the program.

Senate Leaders Hope to Complete Work on Stimulus
Moderate senators from both parties are working to strip some spending commitments out of the legislation in order to garner bipartisan support. Sen. Ben Nelson and Sen. Susan Collins have been meeting in an attempt to draw up a list of spending cuts in the hope of attracting more Republican votes in favor of the package.

On Wednesday, senators amended the bill to include an expanded tax credit for home-owners and softened a provision that would have required that only U.S. iron, steel and manufactured goods were used in projects funded by the bill.

Senate Majority Leader Harry Reid has signaled the possibility of something that can be voted on by the end of the day.  If approved, the bill will go to a conference committee where the differences between the versions passed by the Senate and House will be ironed out.

News

Avalanche of job losses burying U.S., state: Milwaukee Journal Sentinel, Feb. 6, 2009.

Senators try trimming economic stimulus bill: Milwaukee Journal Sentinel, Feb. 5, 2009.

Budget may be delayed: Wisconsin State Journal, Feb. 4, 2009.

Area legislators push for autism treatment bill: Green Bay Press-Gazette, Feb. 3, 2009.

Hospital assessment makes sense (opinion): Stevens Point Journal, Feb. 2, 2009.

Medicaid fastest growing portion of state budget: La Crosse Tribune, Feb. 2, 2009.

State budget waiting on feds, but looks painful: Racine Journal Times, Feb. 2, 2009.

Report critical of Wisconsin officials' spending decisions: Milwaukee Journal Sentinel, Feb. 3, 2009.

State budget crisis: Dwindling revenues clash with high expectations for services: La Crosse Tribune, Feb. 1, 2009.

Jobless rate climbs; benefits extended: Superior Daily Telegram, Jan. 30, 2009.

House approves stimulus without Republican support: Milwaukee Journal Sentinel, Jan. 29, 2009.

Milwaukee-area jobless rate reaches record for December: Milwaukee Journal Sentinel, Jan. 29, 2009.

State lawmakers focus on unemployment with State of the State today: Green Bay Press-Gazette, Jan. 28, 2009.

Doyle says large deficit to grow, sacrifices to be made: Milwaukee Journal Sentinel, Jan. 29, 2009.

Gov. Jim Doyle's plan to resolve Wisconsin's budget woes lags on details: Appleton Post-Crescent, Jan. 29, 2009.

Assembly passes bills aimed at helping Wisconsin firms: Milwaukee Journal Sentinel, Jan. 27, 2009.

Court rules injured Holmen cheerleader can’t sue teammate: La Crosse Tribune, Jan. 27, 2008.

Hospital tax could benefit Milwaukee: Milwaukee Journal Sentinel, Jan. 25, 2009.

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