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Aug. 12, 2005
The United States Supreme Court,
Governor Doyle and, most significantly, the Wisconsin Supreme
Court, have all had a role in impacting the legislative agenda for
the upcoming floor periods.
In
June, in a 5-4 decision, the U.S. Supreme Court ruled that the condemnation
power of local government can extend to private development, and not violate
the “Takings Clause” of the U.S. Constitution, if development will provide
appreciable benefits to the community. The Court did, however, specifically
recognize that states are within their respective rights to pass additional
laws restricting condemnation. This case has the potential for pitting
property rights against economic development. In light of the Court’s
decision, the Legislature will need to determine what, if any, restrictions
may be needed in Wisconsin, balancing property rights and legitimate
development which provide appreciable economic development benefits.
In
signing the 2005-07 state budget, Governor Doyle made extensive use of the
item veto power, which is among the most far-reaching in the country. Among
his vetoes, the Governor redirected monies to the general fund and crafted
language (through vetoes) that “authorized” him to direct the Department of
Administration to spend the money (on schools) without specific legislative
authorization. A proposed constitutional amendment limiting the veto
authority of a Wisconsin governor is currently being circulated among
Wisconsin legislators and will likely be debated in the upcoming legislative
floorperiods. (See article below.)
The Wisconsin Supreme Court has handed down three cases this year (one in
March and two in July) that reinterpreted the legislatively adopted standard
for the award of punitive damages; ruled that caps on noneconomic damages in
medical malpractice cases, also adopted by the legislature, are
unconstitutional; and, expanded the “risk contribution” theory to allow the
award of damages in product liability cases without the need to prove
liability of the manufacturer. (See article below.)
All of the above, in different ways, present a challenge to legislative
prerogative and raise potential separation of powers issues. The Wisconsin
Supreme Court cases also have impacted Wisconsin’s “litigation atmosphere”
creating a challenge for economic development and our state’s ability to
remain attractive for business expansion and location. These are all
challenges facing the Legislature when it meets this Fall and early next
year.
Policy Developments
Legislative Activities
All bills passed by the Legislature, not yet acted upon, were
sent to the Governor Aug. 11. The Governor then has six days,
Sunday excluded, to take action or the bills become law without
his signature.
Bills of interest that the Governor will sign on
Monday, Aug. 15, include:
-
AB-5. Removes certain limits on health benefit purchasing
cooperatives.
-
AB-24. Quorum requirements for a zoning board of appeals or
adjustment.
-
AB-259. Provider organizations subject to health care liability
requirements.
-
SB-2. Regional emergency response team requirements.
Other
bills
awaiting his consideration include:
-
AB-107. Daily deadline for filing certain documents for recording by
register of deeds.
-
AB-277. General air pollution control permits. (Jobs Creation II).
-
AB-441. Applications for certificates of public convenience and
necessity for certain electric generating facilities.
-
SB-39. School transportation bio-diesel fuel cost assistance.
-
SB-55. Increases limits on designation of enterprise development
zones.
Other recent action:
-
AB-600 was introduced in the Assembly on Aug. 9. It would create a
sales and use tax exemption for motor vehicles that use gasoline and
ethanol mixtures as fuel.
-
The Assembly Committee on
Urban and Local Affairs recommended passage of
AB-509, which would eliminate immunity from liability of
cities, villages, towns and counties for damages caused by an
insufficiency or want of repair of a highway.
Voter ID Bill Sent to Doyle
Gov. Doyle is expected to veto the the latest version of the voter photo
ID bill (SB-42.)
later today. It will be the third time in three years Doyle has vetoed the
voter ID proposal.
State
legislators had requested action on the voter ID bill following an
investigation of possible voter fraud in the November 2004 election. The
bill, which would have required certain identification to vote at a polling
place or obtain an absentee ballot, passed the Senate on June 15 by a vote
of
21 to 12, and passed the Assembly on June 21 by a vote of 63 to 34.
In
addition to SB 42,
Assembly Bill 542, introduced on July 7, proposes various changes in the
laws concerning election administration. These changes would include setting
up satellite polling places, limiting waiting times for voters to 30
minutes, providing voter registration applications when getting a driver’s
license, circulating an electronic list of felons barred from voting, and
training poll workers. AB 542 has been referred to the Assembly Committee on
Campaigns and Elections.
Amendment on Veto Authority Receives Support
A proposal is currently being circulated on a constitutional amendment
limiting the governor's veto authority. The amendment would prohibit
creation of a new sentence by combining parts of two or more sentences in an
enrolled bill.
Assistant Majority Leader Neal Kedzie (R-Elkhorn)Kedzie joined Majority
Leader Dale Schultz (R-Richland Center) in announcing their support of the
constitutional amendment being circulated by Senators Sheila Harsdorf
(R-River Falls) and Scott Fitzgerald (R-Juneau) and State Representatives
Jeff Stone (R-Greendale) and Don Friske (R-Merrill).
The
proposal is identical to the 1991 Assembly Joint Resolution 78. Even with
such limitations put on the partial veto authority, Wisconsin’s governor
would still have the most expansive veto authority in the nation.
LFB Publishes Summary of Partial Vetoes
This week the Legislative Fiscal Bureau published its
Summary of Partial Vetoes of 2005 Wisconsin Act 2005.
According to a comparison of the general fund condition
statements under the enrolled budget bill passed by the Legislature, versus
Act 25 as signed and vetoed by the Governor - Revenues are increased by
$447 million under Act 25 compared to the enrolled bill, including a $26.8
million increase in tax collections over this biennium. Total GPR spending
(total GPR appropriations) are $25.793 billion under Act 25 compared to
$25.314 billion under the enrolled bill, or an increase of $479 million
under Act 25.
Civil Justice “Summit” Held on Supreme Court Rulings and Other Legislation
About 60 representatives from business trade groups and independent
companies recently attended a summit in Madison to address civil justice
issues - including those raised as a result of the Wisconsin Supreme Court
rulings on punitive damages, medical malpractice noneconomic damages caps,
and manufacturer’s liability under a “risk contribution” theory. The group
also was updated on pending legislation relating to expert opinion evidence,
products liability, and shareholder liability.
The
meeting, hosted by the Wisconsin Coalition for Civil Justice, focused on the
potential impact the Court’s rulings may have on economic development as
well as Wisconsin’s reputation as having had a better than average
litigation climate. The meeting also addressed the potential for Wisconsin
becoming a hot bed for plaintiff lawyers from throughout the country and
reopening the door for lawsuit abuse. Significant attention was given to the
suggestion that the Court was acting like a “super legislature,”
substituting its policy judgment for that of the Wisconsin Legislature.
The
recent decisions of the Wisconsin Supreme Court have drawn national
attention. Calling the ruling “highly creative,” the Wall Street Journal
in an August 9th editorial opined that the “implications for
Wisconsin's economy, which depends both on health care and manufacturing,
are enormous. The last thing Wisconsin needs is a reputation as a
cold-weather Alabama.”
Speaker Gard Names Public Members of Medical-Malpractice Reform Task Force
Five public members will round out the Speaker’s Task Force on
Medical-Malpractice Reform. Assembly Speaker John Gard (R-Peshtigo) created
the task force after the recent Supreme Court decision which held that caps
on non-economic damages are unconstitutional. Since 1995, Wisconsin law has
capped excessive non-economic (pain and suffering) awards.
The
public members joining the task force are:
-
David Strifling, an attorney with Quarles and Brady.
-
Mary Wolverton, an attorney specializing in health care in practice with
Peterson, Johnson and Murray, SC of Milwaukee, and Past President of the
Civil Trial Counsel of Wisconsin.
-
Dr.
Bud Chumbley, an obstetrician and President/CEO of Medical Associates
Health Centers in Menominee Falls.
-
David Olson, a hospital CEO, board member and founder of NorthReach.
-
Ralph Topinka, vice president and general counsel of Mercy Alliance in
Janesville.
HUD Brownfields Economic Development Initiative Grants Reopened
U.S. Department of Housing and Urban Development (HUD) has announced an
extended deadline for brownfields grants applications. Due to difficulties
in submitting applications this year under the HUD SuperNOFA, the
Brownsfields Economic Development Initiative (BEDI) program competition has
re-opened; the new deadline is August 25, 2005. Further information and
applications for this program may be found on the
HUD website.
The
Brownfields Economic Development Initiative is a key competitive grant
program that HUD administers to stimulate and promote economic and community
development. BEDI is designed to assist cities with the redevelopment of
abandoned, idled and underused industrial and commercial facilities where
expansion and redevelopment is burdened by real or potential environmental
contamination.
Legislation Would Modernize WHEDA Finance Programs
Bipartisan legislation introduced in the Assembly and Senate would boost
the economic impact of affordable housing and business finance programs
offered by the Wisconsin Housing and Economic Development Authority (WHEDA)
by as much as half a billion dollars annually.
WHEDA
has estimated that the proposal,
AB-593 and
SB-269, could provide additional lending capacity generating as much as
$483 million annually and help to create the equivalent of 3,755 full-time
jobs in construction trades and other sectors of the state's economy.
For
WHEDA's business and agricultural financing, the bill would, among other
things, refinance debt where a business is expanding and creating new jobs;
and, eliminate the current $750,000 loan amount cap and provide an unlimited
loan amount for growing businesses.
New WISTAX Study Compares Income Taxes Nationwide
A recent
study published by the Wisconsin Taxpayers Alliance (WISTAX) found that
in 2003, Wisconsin state income taxes paid by filers with incomes in the
$35,000-$75,000 range were higher than in most other states.
For
single filers with incomes in this range, Wisconsin’s income taxes were
among the top 10 nationally. For married, joint filers, Wisconsin ranked
from 11th to 15th, depending on income. The state’s highest income tax
ranking for any group was for married senior citizens with incomes of
$50,000. These senior filers paid $1,970 in income taxes, 4th highest
nationally.
Governor's Safety Conference
The 31st annual
Governor's Conference on Highway Safety is being held August 17 and 18
in Green Bay. The conference highlights transportation safety and will touch
on the wide variety of topics including ethics and lobbying, drowsy driving,
drugged driving beyond illicit drugs and .08 - has it made a difference?
Wisconsin
Politics
Sowa Seeking Democratic Nomination
for Congress
Justin Sowa, a Democrat who works in international business,
plans to run for Paul Ryan's congressional seat representing
Wisconsin's southeastern corner.
Sowa
is seeking the Democratic nomination to take on Ryan, R-Wis., who won the
seat in 1998. The district includes portions of Kenosha, Racine, Milwaukee,
Waukesha, Walworth and Rock counties. Ryan won 65 percent of the vote last
year to win re-election.
Federal Developments
Bush Signs Energy Bill
President Bush on Monday
signed sweeping legislation that provides billions of dollars
in tax subsidies to energy companies.
The
new 1,724-page
energy law, [pdf doc] four years in the making, will provide $14.5
billion in tax incentives and provides for energy promotion, including
incentives and loan guarantees for new nuclear power plants, clean coal
technology and wind energy.
For consumers, the bill would provide tax credits for buying hybrid
gasoline-electric cars and making energy-conservation improvements with
better windows and appliances in new and existing homes. Also, beginning in
2007, the measure extends daylight-saving time by one month to save energy,
starting three weeks earlier in the spring, and adding a week in the fall.
It
also contains provisions to expand the use of ethanol in the nation’s fuel
supply. Starting in 2006, the Act calls for four billion gallons of
renewable fuel, with increased volumes each year up to 7.5 billion gallons
by 2012.
Work on Federal Transportation Bill Complete
On Wednesday, August 10, President Bush signed the $386 billion
federal highway funding bill in to law. Wisconsin received a 30 percent
annual increase in federal highway funding - going from approximately $546
million to $712 million annually.
Wisconsin Congressman Tom Petri (R), who serves as the Chair
of the House Subcommittee on Highways, Transit and Pipelines, played a
crucial role in ensuring that Wisconsin received the much improved funding
levels. The Wisconsin Dept. of Transportation has not announced where the
additional resources will be spent. However, we should see significant
impact on highway projects, transit and tourism.
There
was a total of $275 million earmarked as High Priority Projects for
Wisconsin. Some of the significant earmarks include:
-
$28
million for the Lake Buttes des Morts Bridge
-
$13
million to reconstruct Hwy 41 north of the Buttes des Morts Bridge
-
$24
million for the expansion of Hwy 23
-
$16
million to expand Hwy 10 between Marshfield and Stevens Pt.
-
$10
million to replace the Wisconsin State Bridge (STH 44) in Oshkosh
-
$7.2 million for preliminary engineering on I-94 between Mitchell IC and
IL
-
$13
million to rehab existing bridge and construct new bridge in Sturgeon Bay
Political News
Partial
veto battle goes back a century: Milwaukee Journal Sentinel, Aug.
12, 2005.
Concealed
weapon advocates alter approach: Milwaukee Journal Sentinel, Aug.
12, 2005.
No
case for photo ID law (opinion): Milwaukee Journal Sentinel, Aug.
12, 2005.
State cuts could hurt county nursing home: Wausau Daily Herald, Aug.
12, 2005.
Governor says freeze better for education: Waukesha Freeman, Aug.
10, 2005.
Bad bill will bring more underage drinking in state (opinion):
Oshkosh Northwestern, Aug. 12, 2005.
Governor's veto contributes to plight of women (opinion): Ashland
Daily Press, Aug. 11, 2005.
More anti-business mischief in Madison (opinion): Beloit Daily News,
Aug. 12, 2005.
Social
Security program has roots in Wisconsin: Janesville Gazette, Aug.
12, 2005.
Power line
work begins in northern counties: Milwaukee Journal Sentinel, Aug.
12, 2005.
Paid Sick Leave Plan Gets Mixed Reaction: Wisconsin State Journal,
Aug. 11, 2005.
Bankers See Increase In ID Theft, Fraud: Wisconsin State Journal,
Aug. 11, 2005.
Think very hard before changing state Constitution (opinion): La
Crosse Tribune, Aug. 9, 2005.
GM scores in
China with mini-minivans: Milwaukee Journal Sentinel, Aug. 9, 2005.
State sees double-digit growth in new businesses: Appleton
Post-Crescent, Aug. 7, 2005.
Doyle, GOP flip-flop in debate over veto powers: Appleton
Post-Crescent, Aug. 7, 2005.
Trails win with highway bill: Appleton Post-Crescent, Aug. 7, 2005.
Public-use
ruling has political backlash: Milwaukee Journal Sentinel, Aug. 7,
2005.
Doyle detects new love: Madison Capital Times, Aug. 6, 2005.
Magnum set to face Baldwin again: Madison Capital Times, Aug. 5,
2005.
Upcoming Fundraisers
Aug. 13
Aug. 16
Aug. 17
Aug. 18
-
Sen. Cathy Stepp (R-Sturtevant),
Madison
-
Scott Walker (R) Gubernatorial
candidate, Milwaukee
-
JB Van Hollen (R) AG candidate, Eau
Claire
Aug. 22
Aug. 24
Aug. 25
Aug. 27
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