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June 3, 2005

The Joint Committee on Finance devoted most of its efforts toward the budgets of the University of Wisconsin and Department of Corrections this week. In its highest profile action to date, the Committee voted to reduce Governor Doyle’s proposed $50 million increase to the University by $40 million. The Committee also rejected imposing an arbitrary cap on tuition increases. This action was followed by adoption of a motion to form a task force on the university system to include legislators and leaders from the university and technical college systems. The idea is to develop a strategic, long-range plan that would address funding, operations, and contributions by the institutions to economic development. 

The Joint Committee on Finance still has some very large and controversial issues to tackle and will be meeting most days next week in hopes of finishing its budget recommendations. The regularly scheduled legislative floor periods will be limited and the Assembly will probably not be in session all week. The Senate has indicated its intention to meet on Wednesday, although expectations are that the calendar will be light in order to allow Finance sufficient time to work. There is much “speculation” about the ultimate product out of Finance; if Finance will serve the role of a “conference committee” in resolving differences between the two houses before the bill is sent to them; and, what Governor Doyle “might” do depending on how certain key issues are addressed in the final package. Until the work is done, it is only that—“speculation.”

Policy Developments

AB 203 (Expert Opinion Evidence) Advances/Civil Justice Legislative Update
The Assembly Committee on Corrections and the Courts voted 6-4 Wednesday, June 1, to recommend passage of AB 203 regarding expert opinion evidence/Daubert. This is the third bill containing the Daubert standards and principles to have been recommended for passage by a legislative standing committee this legislative session. Following is an update on 2005 civil justice legislation, including prime authors from both Houses, where appropriate, and the current status.

• SB 58--Product Liability (Kanavas/Huebsch)--passed Senate 18-14 on 5/3; referred to Assembly Rules Committee.

• AB 101--Product Liability (Huebsch/Kanavas)--passage recommended 5-2 by Assembly Judiciary on 4/7; in Rules and available for scheduling.

• SB 70--Expert Opinion Evidence (Kanavas/Suder)--passage recommended 3-2 by Senate Judiciary on 4/5; available for scheduling.

• AB 203--Expert Opinion Evidence (Suder/Kanavas)--passage recommended 6-4 by Assembly Committee on Corrections and the Courts on 6/1.

• AB 278--Includes Expert Opinion Evidence (Hundertmark/Leibham)--passed Assembly 56-40-2 paired on 4/12; public hearing held in Senate Judiciary on 5/4.

• SB 159--(Decker/Kessler)--Requires Advising Jurors of Legal Consequences of Findings Before Fact Finding--referred to Senate Judiciary on 4/7.

• SB 161--(Reynolds/Vrakas)--Exemption for Claims re Weight Gain & Obesity--referred to Senate Judiciary on 4/7.

• LRB-2845/1--Repeals 15 percent Cap on Reduction of Damages for Failure to Wear Seat Belt--will be circulated for co-sponsors within the next two weeks.

Executive Action by Assembly Energy and Utilities Committee
AB-441.  Applications for certificates of public convenience and necessity for certain electric generating facilities. Passage recommended, 10-0.

AB-437. Requires the conveyance of property to a public utility for the construction of electric transmission lines. Amendment adopted, 9-1. Passage as amended recommended, 10-0.

Executive Action by Assembly Natural Resources Committee
AB-187. Information about real property purchased with stewardship money; public access to that property. Assembly Substitute Amendment 1 adoption recommended, 13-0-2.  Passage as amended recommended, 13-0-2.

AB-299. Effect of county shoreland zoning ordinances in territories annexed by cities, villages, or towns or incorporated as cities or villages.  Assembly Amendment 1 adoption recommended, 13-0-2.  Passage as amended recommended, 11-2-2.

Executive Action by the Assembly Insurance Committee
AB-259. Provider organizations subject to health care liability requirements.  Assembly Substitute Amendment #2 (LRB-s0124/1) adoption recommended, 13-0-2.  Passage as amended recommended, 13-0-2.

Finance Committee Approves Public Benefits Fund Transfer
The Joint Finance Committee voted, on a 12-4 bipartisan vote, to approve the Governor’s recommendation to transfer $18 million in 2005-06 and $17 million in 2006-07 to the General Fund. [LFB Paper #100, May 11, 2005-Alternative 1 adopted]. In addition, the committee adopted, on another bi-partisan vote, an additional transfer of $1.9 million over the biennium to DHFS from the utility public benefits to support a one-time increase for income maintenance contracts. [Motion 188.]

Wisconsin's Public Benefits program, which encompasses energy conservation, renewable energy development and low-income services, was created in 1999 as part of the Reliability 2000 package promoted by then Governor Thompson and adopted by the Wisconsin Legislature. Energy companies and certain business groups have partnered with the environmental groups to oppose the transfer.

Supreme Court Addresses Leased Vehicles under Wisconsin’s Lemon Law
The State Supreme Court affirmed a Court of Appeals (District II) decision that extended coverage under the "lemon law" for leased vehicles. The Court of Appeals decision reversed a Waukesha County Circuit Court order dismissing the case.

The issue before the Supreme Court focused on whether or not the lessee met the definition of "consumer" under the Magnuson-Moss Warranty Act (MMWA), and if she could maintain a cause of action under the act for breach of written warranty. The Court found that Volkswagen's warranty constitutes a "written warranty" under the MMWA because it was issued by Volkswagen in connection with the sale of the vehicle by an authorized dealer to a lending institution in order to facilitate the lease; the warranty was part of the basis of the bargain between the dealership and the lending institution; and the lending institution purchased the vehicle for purposes other than resale.

The Court added in a footnote that it was not holding that all lessees may proceed under the MMWA, but are merely holding that the plaintiff in this case alleged sufficient facts to survive Volkswagen's motion to dismiss. On remand, the Court stated that the parties should be accorded the full opportunity to conduct discovery and present motions for summary judgment if the evidence produced during discovery demonstrates there are no disputed issues of fact.

Governor Doyle Signs Assembly Bill 49 Creating Statewide Minimum Wage
Governor Doyle on Wednesday announced the increase of the statewide minimum wage, which was effective June 1. Lowest legal pay goes to $5.70 per hour from $5.15. The statewide minimum wage increase comes more than a year after Governor Doyle’s Minimum Wage Advisory Council recommended an increase in the state’s minimum wage.

Also on Thursday, Gov. Doyle signed AB 49, which bars municipalities throughout the state from raising their minimum wage levels higher than the state level. "I have always said that Wisconsin's minimum wage should be higher than $5.15 - but there should only be one minimum wage in Wisconsin," Doyle said in a statement. "A single statewide minimum wage will encourage a strong business climate in Wisconsin, and minimize confusion over different communities setting their own minimum wages."

Wisconsin’s Economy Remains Strong
The Wisconsin economy continues to show signs of growth, according to the Department of Revenue's latest Wisconsin Economic Outlook Report. Statewide, both employment and personal income are higher compared to last year and are expected to show comparable or higher growth in 2006. Another positive sign of a strengthening economy is a significant increase in individual and corporate income tax collections.

Wisconsin Politics

Gov. Jim Doyle's deputy chief of staff was named Doyle's campaign manager Wednesday. Rich Judge, who has been the deputy chief of staff, will head up Gov. Jim Doyle's '06 re-election bid as campaign manager.

Judge was the state director for John Kerry's 2004 campaign and has also worked as field director of the Democratic Party's state coordinated campaign and as political director of the Democratic Party of Wisconsin.

Political News

Budget cautious on prison reform: Milwaukee Journal Sentinel, June 3, 2005.

Limits sought for stem cell research: Milwaukee Journal Sentinel, June 3, 2005.

Feuds between UW, Legislature should end (opinion): Stevens Point Journal, June 3, 2005.

Labor costs stir economic health: Appleton Post-Crescent, June 3, 2005.

Business group aims at regional issues: Milwaukee Journal Sentinel, June 3, 2005.

Decker leads effort to save deaf office: Wausau Daily Herald, June 3, 2005.

Cities lose power to set wages: Appleton Post-Crescent, June 2, 2005.

Local wage floors barred: Milwaukee Journal Sentinel, June 2, 2005.

Lasee: Meal deals OK for lawmakers: Green Bay Press-Gazette, June 2, 2005.

Doyle lauds wage hike in Janesville visit: Janesville Gazette, June 2, 2005.

UW, Legislature crossing swords: Appleton Post-Crescent, May 31, 2005.

Local land-use plans progress: Wausau Daily Herald, May 31, 2004.

State is moving to make ethanol the `cool' fuel: Racine Journal Times, May 31, 2005.

Budget panel votes to cut trash fee: Milwaukee Journal Sentinel, May 31, 2005.

Relief needed on gas prices (opinion): Milwaukee Journal Sentinel, May 30, 2005.

Law is a barrier to utility mergers: Milwaukee Journal Sentinel, May 30, 2005.

State Considers Health Care Changes: Wisconsin State Journal, May 30, 2005.

Firms may be told to cough up: Milwaukee Journal Sentinel, May 29, 2005.

Roessler proposes bill to raise cigarette tax: Oshkosh Northwestern, May 29, 2005.

Lemon law extends to leases: Milwaukee Journal Sentinel, May 28, 2005.

Meyer authors bill to give local voice on state land deals: Rhinelander Daily News, May 28, 2005.

Panel OKs photo ID amendment: Milwaukee Journal Sentinel, May 27, 2005.

Lawmaker would cut Legislature to save money: Appleton Post-Crescent, May 27, 2005.

Economic power is pushed for women: Manitowoc Herald Times, May 27, 2005.

Unemployment drops in all Wisconsin metro areas: Janesville Gazette, May 26, 2005.

State Supreme Court agrees to hear airline tax break case: Appleton Post-Crescent, May 26, 2005.

DNR tackles waterfront rules: Milwaukee Journal Sentinel, May 26, 2005.

Upcoming Fundraisers

Sunday, June 5, 2005

• U.S. Sen. Russ Feingold (D), Middleton

Monday, June 6, 2005

• State Senate Democratic Committee, Eau Claire

• Rep. John Gard (R-Peshtigo), Green Bay