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Mar. 15, 2004

The Wisconsin Legislature concluded the 2003-04 regular legislative session late last week in which literally hundreds of bills received some consideration, but not all made the cut. Below we have highlighted some of the bills that received final legislative approval last week. The legislative enactments cover a wide range of subject matters including the regulation of high cost mortgage lending, tightening the requirements for expert opinion evidence in civil cases, allowing boards and members of nonprofit associations to conduct business via e-mail, encouraging capital investment in Wisconsin, state minimum wage preemption, job training and a TIF trailer bill. The Administration will be extremely busy examining the very lengthy list of bills presented to the Governor over the past few weeks. 

[EDITOR’S NOTE: All of the links below are to the individual bill’s history which, in turn, provides links to the bill text as well as any adopted Substitute Amendment (replaces entire bill) and any adopted amendments to the original bill or the Substitute amendment. We believe this will provide the most comprehensive coverage, particularly in light of the flurry of activity last week, including amendments, which may have significantly altered the original proposal(s).]

Policy Developments

Legislative Session Over, Bills Ready for Governor
Both houses were busy this week with final action on several bills remaining for the current floor period. Selected items that received final consideration last week include:

Assembly Bills

• AB 254, relating to revisions and additions to condominium law.

• AB 417, relating to the retainage of public construction contracts.

• AB 516, relating to an exemption from the requirement to obtain an air pollution construction permit for certain equipment at a nonmetallic mineral processing facility.

• AB 591, relating to recording and filing documents with the offices of register of deeds and the Department of Financial Institutions.

• AB 595, relating to civil liability exemption for claims resulting from weight gain and obesity.

• AB 608, relating to making changes to the comprehensive planning statute known as Smart Growth.

• AB 633, relating to state minimum wage preemption.

• AB 728, relating to comprehensive planning by local governmental units and fees imposed by political subdivisions.

• AB 730, relating to the acquisition of in-state banks and in-state bank holding companies.

• AB 792, relating to regulating high cost mortgage lending.

• AB 812, relating to registration of livestock premises and granting rule-making authority.

• AB 830, relating to funding for engineering instruction at the University of Wisconsin-Rock County campus and making an appropriation.

• AB 843, relating to the issuance of debt by natural gas and electric public utilities to finance certain environmental activities.

• AB 859, relating to manufacturing extension center grants.

• AB 868, relating to the siting and expansion of certain livestock facilities; local zoning ordinances relating to livestock facilities; creating a Livestock Facility Siting Review Board.

• AB 890, relating to meetings of the boards and members of nonprofit corporations.

• AB 925, relating to enforcement of the one-family and two-family dwelling code in certain cities, villages, and towns.

• AB 926, relating to regulation of high capacity wells, notification of well construction, groundwater quantity management, granting rule-making authority, and making appropriations.

Senate Bills

• SB 49, relating to expert opinion evidence.

• SB 61, relating to environmental compliance audits, environmental management systems, providing incentives for improving environmental performance, providing immunity from civil penalties for certain violations of environmental requirements, access to certain information, granting rule-making authority, and providing a penalty.

• SB 71, relating to treatment of prescription drug costs, diagnostic testing, and payments under mandated insurance coverage of treatment for nervous and mental disorders and alcoholism and other drug abuse problems, and granting rule-making authority.

• SB 87, relating to limiting the authority of cities and villages to annex territory.

• SB 218, relating to the authority of the board of directors of business corporations and corporate committees; corporate shareholder notices and meetings; mergers, conversions, and other business combinations; the transfer of corporate property to certain affiliates; and naming limited partnerships.

• SB 261, relating to creating a qualified new business venture tax credit and a capital gains tax exemption regarding investments in certified venture capital funds and qualified new business ventures, requiring a study of new Wisconsin businesses, facilitating the development of certain investor networks.

• SB 272, relating to local government telecommunications utilities and public hearings for ordinances and resolutions authorizing local government cable television, telecommunications, and Internet access facilities.

• 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.

• SB 340, relating to various changes in the unemployment insurance law, granting rule-making authority, and making appropriations.

• SB 369, relating to reciprocal agreements for real estate licenses.

• SB 372, relating to making patient health care records concerning health care operations inapplicable to restrictions on release without informed consent.

• SB 384, relating to authorizing technical college districts to issue revenue bonds for the purpose of providing services and facilities to businesses, granting rule-making authority, and making an appropriation.

• SB 428, relating to TIF trailer legislation.

• SB 435, relating to waiver of a requirement under hemophilia treatment program to apply for other coverage.

• SB 436, relating to motor vehicle emission inspections.

• SB 446, relating to vehicle protection product warranties.

• SB 484, relating to contracts for services under Medical Assistance.

• SB 451, relating to appropriating money to technical college districts for the Wisconsin Advantage Jobs Training Program and making an appropriation.

• SB 471, relating to brownfield revolving loan programs and making appropriations.

• SB 472, relating to making private insurance available to facilitate environmental cleanups.

• SB 512, relating to the property tax exemption for property that is leased as residential housing.

Governor Bill Signings
Governor Doyle signed several bills into law last week, including AB 651, relating to parental liability for acts of their minor child, recovery of damages for certain criminal actions, increasing the jurisdictional amount in small claims court, garnishment, attorney fees, exemption from execution of accounts, civil actions by collection agencies, earnings garnishment, retail theft, recovery in actions involving worthless checks, and revocation of fish and game approvals for which payment is made by worthless checks.

The Governor has also scheduled several bill signings for this afternoon, Monday, March 15, including SB 100, relating to small business regulatory reform including the creation of a Small Business Regulatory Review Board. 

Governor Recommends State Minimum Wage Increase
It was reported in last week’s Tidbits that Governor Doyle had announced that the state’s Minimum Wage Advisory Council had voted, March 1, 16-2 in favor of increasing the state’s minimum wage from the current $5.25 per hour to $6.50 per hour by 2005. This increase is, however, lower than the current proposal before the City of Madison Common Council which would raise the minimum wage in Madison to $7.75 per hour.

While that effort has not been approved by the city government at this time, the state Legislature has passed separate legislation that would preempt any local government minimum wage ordinance that does not conform to the state minimum wage policy. This bill, AB 633, is currently enrolled and awaits action by the Governor. 

Alternative Hub Airline Incentive Heard in Joint Finance
On Wednesday, March 10, 2004, the Joint Finance Committee held a public hearing on legislation that would provide incentive grant payments for airlines that operate hub facilities in Wisconsin. (AB 933 introduced by Representative Jeff Stone; SB 533 introduced by Senator Alberta Darling). 

Currently, airlines operating from a hub facility may qualify for an exemption from the advalorem property tax, (the airline equivalent of an M&E exemption on equipment that generates taxable revenue) but that exemption has been challenged and subsequently ruled unconstitutional on Commerce Clause grounds in the Dane County Circuit Court. Both the State of Wisconsin and Midwest Airlines have filed an appeal of the lower court decision, which is pending. 

The recently introduced legislation provides an alternative incentive for airlines that qualify as hub airlines in the event the appeal is lost and the tax exemption is voided. It would provide a grant payment based on the number of passengers boarded in Wisconsin and is proposed to go into effect in October of 2005. 

Proponents of the legislation testified that the current incentive is working to encourage the growth of air service in Wisconsin and that an alternative incentive was warranted if the tax exemption was struck down. 

The two airlines that currently meet the qualifying criteria for treatment as a hub airline (Midwest Airlines and Air Wisconsin) individually noted their recent capital investments in Wisconsin, which combined is over $800 million in new planes and maintenance facilities, since the tax exemption was enacted in 2001. They also maintained that the legislation is necessary to provide a degree of certainty as they simultaneously continue to pursue their expansion plans and face the uncertainty of a legal decision on appeal. 

The legislation is likely to be pursued in the next budget or as early as this spring if the two houses decide to meet in Extraordinary Session.

Federal Developments

Sykes Nomination Approved by Committee
On Thursday, March 11, the U.S. Senate Judiciary Committee voted 14-5 to recommend confirmation of the nomination of Wisconsin Supreme Court Justice Diane S. Sykes to the federal appeals court in Chicago. Among those voting to support Sykes’ confirmation were Wisconsin Democrat senators Kohl and Feingold. The nomination will now be presented to the full Senate.

Political News

New laws wrong answer on lawsuits (opinion): Wisconsin Rapids Daily Tribune, Mar. 15, 2004.

Veto bill to block wage hikes (opinion): Madison Capital Times, Mar. 14, 2004.

Capital Briefing: St. Paul Pioneer Press, Mar. 13, 2004.

Senate sends Doyle bill on livestock expansion: Appleton Post-Crescent, Mar. 13, 2004.

Leaders tout changes at end of session: Manitowoc Herald Times, Mar. 13, 2004.

Plover woman named to Natural Resources Board: Stevens Point Journal, Mar. 13, 2004.

State Senate approves ban on gay marriage: Milwaukee Journal Sentinel, Mar. 12, 2004.

Bill bans lie tests for abuse victims: Wisconsin Rapids Daily Tribune, Mar. 12, 2004.

U.S. Senate panel OKs nomination of Sykes to U.S. appeals court: St. Paul Pioneer Press, Mar. 12, 2004.

Assembly postpones action on rent-to-own: Appleton Post-Crescent, Mar. 11, 2004.

Airlines would get $18.1 million in breaks: Milwaukee Journal Sentinel, Mar. 11, 2004.

County board size bill goes to Doyle for OK: Oshkosh Northwestern, Mar. 11, 2004.

State's high-tech efforts lagging: Milwaukee Journal Sentinel, Mar. 11, 2004.

Jobless data for state mixed: Milwaukee Journal Sentinel, Mar. 11, 2004.

Business growth boosted: Manitowoc Herald Times, Mar. 11, 2004.

Bill to halt obesity lawsuits passes: St. Paul Pioneer Press, Mar. 10, 2004.

Report: state job market to rebound: Madison Capital Times, Mar. 10, 2004.

Protect state ground water: Wisconsin State Journal, Mar. 10, 2004.

State is 16th in asbestos deaths: Milwaukee Journal Sentinel, Mar. 10, 2004.

Doyle in fight vs. new power market system: Madison Capital Times, Mar. 9, 2004.

More job losses feared among auto suppliers: Milwaukee Journal Sentinel, Mar. 9, 2004.

State legislative committee approves rent-to-own bill: Janesville Gazette, Mar. 9, 2004.

Legislators mull more testing for elderly drivers: Racine Journal Times, Mar. 8, 2004.

The state's court obligation (opinion): Milwaukee Journal Sentinel, Mar. 6, 2004.

Business program in state’s best interest (opinion): Green Bay Press-Gazette, Mar. 6, 2004.

State factory jobs hit lowest since '92: Milwaukee Journal Sentinel, Mar. 5, 2004.

Markup law doesn’t help consumers, AAA says: Fond du Lac Reporter, Mar. 5, 2004.

Upcoming Fundraisers

Monday, March 15, 2004:

• St. Sen. Roger Breske, (D-Eland), 6:00 p.m., Birnamwood, Wis.

• St. Rep. Terri McCormick, (R-Appleton), 5:00 p.m., Neenah, Wis.

Wednesday, March 17, 2004:

• Governor Jim Doyle, 5:00 p.m., Madison, Wis.

Thursday, March 18, 2004:

• St. Rep. Mark Pettis, (R-Hertel), 5:00 p.m., Siren, Wis.

• St. Sen. Wirch, (D-Kenosha), 7:30 a.m., Madison, Wis.

• St. Sen. Wirch, (D-Kenosha), 5:00 p.m., Kenosha, Wis.