Political Tidbits

Wisconsin political news for clients and colleagues.

Previous issues of Political Tidbits can be found at Tidbits Archive.
Click here to begin your free subscription.

Aug. 29, 2003

With the upcoming Labor Day weekend, late summer vacations and the impending start of most schools in Wisconsin, we present a slightly abbreviated version of Tidbits and wish everyone a great, extended weekend as we see another summer quickly disappear. In the meantime, while celebrating our state’s workforce and the great Harley-fest, our Legislature and Governor continue to gear up for the jobs and economic development floor session scheduled to begin in late September. One economic development issue that doesn’t receive as much attention as others relates to the legal environment and the impact that a state’s liability system has on its economic development. Wisconsin addressed its civil justice system through some major reforms in the 1995-96 legislative session. Little, if anything, has occurred in civil justice reform since the mid-nineties. Two significant proposals are currently pending before the state legislature: the toughening of the standards for expert opinion evidence, which has had a public hearing in the Senate and is awaiting committee action; and, an initiative to change Products Liability law, which is scheduled for a public hearing before the Assembly Judiciary Committee on September 11. We will follow these issues and provide more detailed information as they progress through the legislative process.

Wisconsin Politics

Doyle Eliminates Department of Employment Relations
On August 25, Governor Doyle announced the elimination of the Department of Employment Relations (DER), effective August 24, 2003. The duties of the former Department will be transferred to a newly created Office of State Employment Relations (OSER), an independent agency attached to the Department of Administration. According to the Governor, eliminating the DER and replacing it with the OSER will eliminate 19 state jobs and could save the state an estimated $1 million annually.

Policy Developments

Interest Rate for Civil Lawsuit Judgments
On Tuesday, August 26, the Senate Committee on Judiciary, Corrections, and Privacy recommended passage of SB 231, which would lower the statutory interest rate applicable to court judgments from 12 percent to no less than four percent. By a vote of 3-2, the bill will now go to the full Senate for a vote. (Voting "no" on passage of this bill were two Milwaukee Democrats, Sens. George and Carpenter.)

See attorney Mike Crooks’ August 21 hearing testimony, favoring passage of this bill on behalf of the Wisconsin Civil Trial Counsel.

Job Creation Committee Hears Woes of Wisconsin’s Infrastructure
On Tuesday, August 26, the Senate Select Committee on Job Creation met for the second time. Those testifying before the Committee, including industry and labor leaders, and representatives from several of Wisconsin’s higher education systems, reiterated a common theme – Wisconsin needs to secure and enhance its infrastructure before the state economy can grow. Following the hearing, Committee members Sens. Stepp (R-Sturtevant), Kanavas (R-Brookfield), and Leibham (R-Sheboygan) announced they are committed to securing and enhancing the state’s infrastructure through appropriate legislative initiatives.

Group Insurance Board Approves Premium Rates
On August 26, the Wisconsin Department of Employee Trust Funds (DETF) announced that the Group Insurance Board (GIB) had completed negotiations with the health plans participating in the State’s group health insurance program, and had approved new rate increases. Additionally, the GIB approved established premium rates for the program’s self-insured plans. Although the participating health plans had initially bid a 17 percent rate increase, through negotiations the Board arrived at an approved rate increase of 12 percent. Nationwide, public and private employers are expecting 14 to 16 percent premium increases in the next year.

Manitowoc Area Residents Initiate Farm Lawsuit Under CAA
On August 27, a local group of Manitowoc residents known as “Centerville CARES” announced its intention to initiate a federal lawsuit against a neighboring farm, alleging Clean Air Act (CAA) violations. The group, represented by Midwest Environmental Advocates (MEA), sent notice to the farm, Maple Leaf Dairy, Inc., requesting that the farm take swift action (within 60 days) to address the group’s air pollution concerns, or the group would take the farm to court. Some of the air pollution causing the Centerville CARES group concern is the farm’s release of ammonia.

Helmet Bill Gets Hearing
At an August 26 hearing of the Senate Committee on Judiciary, Corrections, and Privacy, the Committee heard testimony on SB 223, relating to the offering of helmet evidence in a personal injury lawsuit involving a crash and injury to an open-air vehicle motorist. The bill, authored by Sen. David Zien (R-Eau Claire), would disallow introduction of evidence in a personal injury lawsuit that a motorcyclist or other open air vehicle motorist was not wearing a helmet at the time of the crash that caused the individual his or her injuries. The bill would disallow this evidence for the purpose of determining if the injured individual was contributorily negligent in not wearing a helmet, and potentially have his or her damages diminished.

Proponents of the bill argued that because Wisconsin repealed its mandatory helmet law in the 1970s, it was contradictory public policy to allow non-helmeted motorists to be “punished” in personal injury law suits, by allowing a jury to decide whether or not the individual’s damages recovery should be lessened due to injuries sustained in part due to not wearing a helmet. Opponents of the bill, on the other hand, argued that the jury should be allowed to decide if the absence of a helmet was an important contributing factor to head injuries; and, even if the evidence wasn’t allowed during the negligence determination phase of such lawsuits, it should be allowed at the damages phase.

Federal Developments

Acting EPA Administrator Signs New Source Review Rule
On August 27, Acting EPA Administrator, Marianne Lamont Horinko announced a new EPA rule establishing a provision, under the New Source Review (NSR) permitting program, that would allow existing coal-fired utilities and other facilities to upgrade their facilities by replacing old equipment. The new rule would affect approximately 17,000 power plants and other facilities, including several aging coal-fired plants that were previously unable to replace certain aging operating equipment under existing NSR regulations. The rule, 40 CFR Parts 51 and 52 – Prevention of Significant Deterioration (PSD) and Nonattainment New Source Review (NSR): Equipment Replacement Provision of the Routine Maintenance, Repair and Replacement Exclusion, is expected to go into effect in the fall of 2004.

Head Start Bill Moves to Senate
H.R. 2210, otherwise known as the School Readiness Act of 2003, was referred to the U.S. Senate Committee on Health, Education, Labor, and Pensions on July 25, after passing the House on the same day. The bill, authored by Rep. Mike Castle (R-DE), would amend the Head Start Act, affecting Head Start programs nationwide. Head Start programs are committed to helping disadvantaged children prepare for school. H.R. 2210 would amend the Act to create new educational standards for Head Start instructors, provide for a block grant funding approach, and allow religious institutions receiving federal Head Start dollars to make decisions as to that money based on religious beliefs. The Senate Committee has thus far not taken executive action on this bill.

Political News

DNR tightens belt, cuts workers: Green Bay Press-Gazette, Aug. 29, 2003.

Doyle's job rating slumps to new low, poll finds: Milwaukee Journal Sentinel, Aug. 29, 2003.

Prison panel to zero in on costs: Madison Capital Times, Aug. 29, 2003.

Corporate tax break will grow economy (opinion): Green Bay Press-Gazette, Aug. 29, 2003.

Wisconsin likely to challenge Clean Air revision: Green Bay Press-Gazette, Aug. 29, 2003.

30-year rates are highest in year: Wisconsin State Journal, Aug. 29, 2003.

Group forms to explore recalling Plale: Milwaukee Journal Sentinel, Aug. 28, 2003.

Bill focuses on helmet use, jury awards: Manitowoc Herald Times, Aug. 28, 2003.

Sen. Zien pushes anti-helmet bill: Wisconsin State Journal, Aug. 27, 2003.

Cutbacks crumple state paper trade: Wisconsin Rapids Daily Tribune, Aug. 28, 2003.

Harley riders rev up local economy by about $1 million: La Crosse Tribune, Aug. 28, 2003.