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Sept. 26, 2003

As expected, the Wisconsin Legislature wasted little time in addressing key economic development issues as the 2003 fall floor period began earlier this week. There was significant floor and committee activity on issues relating to regulatory reform, technology zones and capital investment. Several bills have been introduced, heard by committees and acted upon by one or both houses. Numerous other proposals are in the drafting and negotiation phases, some more comprehensive than others but all apparently complementary rather than in conflict. The “goals” of the Legislature and the Administration also appear to be consistent and many proposals currently enjoy the backing of the Legislature and the Governor. The trick will be to reach consensus on the more controversial approaches in order to gain the support of both. The fall session includes five weeks of actual floor debate and action with intervening weeks used for public hearings and negotiations.

Wisconsin Policy Developments

Senate Passes Regulatory Reform Bills
On Tuesday, September 23, the Senate passed several prominent regulatory reform bills including: SB 100, relating to creation of a Small Business Regulatory Review Board; AB 228 (otherwise called “Green Tier”), relating to business self-auditing for environmental regulation compliance in lieu of DNR supervision; and AB 151, relating to changing the definition of industrial development projects under Industrial Development law.

Additionally, the Legislature took action on identical bills SB 246 and AB 486, relating to development of DNR rules that would streamline environmental permit processes, including establishment of deadlines for acting on permit applications (the “presumptive permit” bills); SB 246 was passed in the Senate, and AB 486 was moved forward in the Assembly. SB 100 and SB 246 now head to the Assembly for consideration, while AB 228 has passed both houses and will be available for the Governor to consider.

Job Creation Committee Hears Capital Investment Bills
The Senate Select Committee on Job Creation heard testimony on several proposals relating to capital investments, including: CAPCOs; SB 260, relating to creation of a venture capital investment trust in the public employee trust fund; and SB 261 (and companion bill, AB 538), relating to creation of 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.

See The Hamilton Consulting Group’s Update for key points offered in support of the legislation.

Technology Zone Tax Credit Gets Legislative Action
On Thursday, September 25, the Assembly passed AB 520, relating to the method of calculating technology zone tax credits and the certification of businesses under the technology zone program. The same day, the Select Committee on Job Creation held a public hearing and recommended passage of SB 248, the Senate companion to AB 520. The Senate is now expected to take up and pass the Assembly version. The proposal has strong legislative support as well as the backing of the Administration.

Committee Votes on Patients Compensation Fund Bill
On Wednesday, September 24, the Assembly Insurance Committee voted unanimously in favor of passage of AB 487, relating to defining the purpose and ensuring the integrity of the Patients Compensation Fund (PCF) and changing its name to the Injured Patients and Families Compensation Fund (IPFCF).

Under current law, the purposes that the fund may be used for are not specifically defined. This bill would provide that: 1) the purposes of the fund are to curb rising health care costs by financing part of the liability incurred by health care providers from medical malpractice claims and to ensure that medical malpractice claims are satisfied; 2) the health care providers and claimants have contractual rights in all assets of the fund for those purposes; and 3) the fund is held exclusively for the above defined purposes and may not be used for any other purpose by the state.

PSC Approves New Gas-Fired Power Plant in Madison
On September 18, the Public Service Commission (PSC) announced its vote to unanimously approve Madison Gas and Electric’s (MG&E) proposal to construct a new gas-fired cogeneration facility on the University of Wisconsin-Madison’s West Campus. The PSC, however, denied MG&E’s proposed rate increases related to the project. Construction is expected to begin following PSC issuance of their final order, expected within the next few weeks.

Public Weighs in on We Energies Proposal
Last week, the Public Service Commission (PSC) held a series of public hearings regarding We Energies’ proposal to build three new coal-fired power plants in the suburbs of Milwaukee. (Hearings were held September 17^th through the 19^th in Oak Creek and Racine.) Proponents of the plan, including We Energies workers, company officials, and statewide business organizations, as well as opponents of the plan, including environmentalists, flooded the hearings eager to weigh in on PSC’s upcoming decision to approve or disapprove We Energies’ proposal. The PSC is expected to issue its decision on the proposal by December of this year.

‘Baby Luke’ Bill Passes; 0.08 Goes into Effect
These last two weeks of September mark important dates in Wisconsin’s effort to toughen its laws against intoxicated motorists. On Tuesday, September 23, AB 458 passed the full Assembly; it will now go to the Senate. The so-called ‘Baby Luke’ bill strengthens Wisconsin legal prohibitions against operation of a motorized vehicle, or being armed, after using certain drugs.

In addition to toughening laws against drugged drivers, Wisconsin is gearing up to implement its new, lower standard for drunk driving. AB 88, passed by the Legislature on July 3^rd and signed by the Governor the same day, lowers the legal blood alcohol concentration (BAC) for a motor vehicle operator from 0.10 to 0.80. The new law goes into effect this coming Monday, September 30.

Debate Continues Over WisconsinEye C-Span Proposal
The Wisconsin Legislature continues to debate WisconsinEye’s proposal to gain the exclusive rights for television coverage inside the state Capitol. On September 24, members of the Assembly Committee on Electronic Democracy and Government Reform and the Senate Committee on Transportation and Information Infrastructure met to discuss WisconsinEye’s proposal to create a state version of C-Span and record live broadcasts of legislative and executive activity in the Capital.

Despite legislative interest in the proposal, it is the Department of Administration (DOA) that must act next on the proposal, making a recommendation to the Governor, who has the authority to approve or deny the proposal.

Wisconsin Politics

‘Jobs With a Future’ Summit Held
On Thursday, September 25, the Workforce Development Board of South Central Wisconsin (WDB-SCW) and the Jobs With a Future Partnership (JWFP) sponsored the first annual summit of their Jobs With a Future Initiative. Local business and government leaders gathered at the Alliant Energy Center to discuss and develop strategies for building a regional workforce development plan to address skilled labor employer needs and job creation – particularly in the areas of manufacturing and health care. For a list of speakers, see WDB-SCW and JWFP’s joint press release.

Doyle to Hold Manufacturing Summit
On September 22, three days before the Jobs With a Future summit was held, Governor Doyle announced he would hold a Manufacturing Summit to address the loss of manufacturing jobs in the state and what can be done, based upon the business, labor, and educational representatives’ views, to address the needs of Wisconsin’s manufacturing industry.

The Summit will be held on October 8 as part of Doyle’s commitment, through his ‘Grow Wisconsin’ initiative, to revitalize the state economy and create jobs. Key topics that will be addressed include:

• Establishing a Manufacturing Competitiveness Program;

• Expanding opportunities for paper and printing through a sustainable forest certification;

• Promoting exports to assist Wisconsin manufacturing and agriculture;

• Using Federal training dollars for maximum results;

• Focus Commerce training funds on manufacturing; and

• Creating competition for training funds.

Armiak New Forward Wisconsin President
On September 18, Governor Doyle announced the selection of Mike Armiak to be the new President of Forward Wisconsin, the public-private state marketing and business recruitment organization. The organization markets outside the state to attract new businesses, jobs and economic activity to Wisconsin. (See Forward Wisconsin’s website for further information.)

In addition to operating an energy consulting business, Armiak has worked closely with Forward Wisconsin for several years. Armiak was a member of Forward Wisconsin’s Board of Directors from 1987 to 2001, and also served on the Forward Wisconsin Marketing and Executive Committees. Armiak will begin his tenure as president on October 1, 2003.

Two Legislators Object to DWD Secretary Gassman’s Leadership
State Rep. Steve Nass (R-Whitewater), and Sen. Tom Reynolds (R-West Allis), sent a letter to Senate Majority Leader Mary Panzer (R-West Bend) expressing objection to Governor Doyle’s appointment of Roberta Gassman as Secretary of the Department of Workforce Development. The letter urges a Senate vote to reject Gassman’s appointment, citing disapproval of recent DWD involvement in an effort to increase Wisconsin’s minimum wage without the prior approval of the legislature.

Federal Developments

Congress Passes Homeland Security Appropriations Bill
On September 24 the House and Senate both passed H.R. 2555, the $29.4 billion Homeland Security Appropriations bill for FY 2004. A week earlier, a combined House and Senate Conference Committee announced it had approved H.R. 2555. The bill is now cleared for White House consideration. The bill includes the following appropriations breakdowns:

• $455.4 million for departmental operations and management;

• $19.1 billion for security, enforcement, and investigations to protect the Nation’s borders and transportation systems; and

• $8.6 billion for the defense of the Nation’s borders and investigations and enforcement of immigration and customs laws.

Legislators Ask For Renewable Inclusion in Energy Policy
On September 5, a joint congressional conference was held on the omnibus energy companion bills, S.14 and H.R.6, related to the enhancement of energy conservation and research and development, and providing for security and diversity in the energy supply for the American people, and for other purposes. On that same day, Wisconsin Legislators urged the Wisconsin Congressional Delegation to push for added provisions to the final bill that encourage use of a renewable fuels standard (RFS) and phase-out use of the carcinogenic MTBE. Twenty-seven state legislators, led by Rep. Stephen Freese (R-Dodgeville), and Sen. Dale Schultz (R-Richland Center), signed the September 5, 2003 letter.

Political News

Deal on definition prevents abortion fight: Milwaukee Journal Sentinel, Sept. 26, 2003.

Assembly delays vote on business permit approvals: Manitowoc Herald Times, Sept. 25, 2003.

Democratic race marked by indecision: Milwaukee Journal Sentinel, Sept. 26, 2003.

State panel eases restriction on methane gas emission: Milwaukee Journal Sentinel, Sept. 25, 2003.

State’s image takes leaders’ focus: Appleton Post-Crescent, Sept. 25, 2003.

Republicans seek quick confirmation of Sykes: Milwaukee Journal Sentinel, Sept. 25, 2003.

Sykes picked for appeals court, source says: Wisconsin State Journal, Sept. 24, 2003.

Regents to review pay increases: Milwaukee Journal Sentinel, Sept. 24, 2003.

Assembly fails to override Doyle veto: Appleton Post-Crescent, Sept. 24, 2003.

Big legislative agenda faces lawmakers (opinion): Manitowoc Herald Times, Sept. 24, 2003.

Doyle aides call on Senate to delay action on business bills: Milwaukee Journal Sentinel, Sept. 23, 2003.

Opponents of power line lose appeal: Janesville Gazette, Sept. 24, 2003.

Advocacy group: State’s water policy flunks tests: Green Bay Press-Gazette, Sept. 24, 2003.

State Senate OKs speedier business permits: Milwaukee Journal Sentinel, Sept. 24, 2003.

Push for bipartisan job-growth initiative (opinion): La Crosse Tribune, Sept. 24, 2003.

Support the arts to build economy (opinion): Wisconsin State Journal, Sept. 23, 2003.

State to seed venture fund to aid minority firms: Milwaukee Journal Sentinel, Sept. 22, 2003.

State needs daring measures to get new businesses up, running: Milwaukee Journal Sentinel, Sept. 22, 2003.

Industry works to meet energy demands: Appleton Post-Crescent, Sept. 21, 2003.

Guns, gay marriage and jobs, jobs, jobs: Milwaukee Journal Sentinel, Sept. 21, 2003.

Upcoming Fundraisers

Monday, September 29, 2003

• State Sen. Bob Welch (R-Redgranite), 5:00 p.m., Milwaukee, Wis.

Friday, October 3, 2003

• U.S. President George W. Bush, 11:00 a.m., Milwaukee, Wis.

• State Sen. Gary George (D-Milwaukee), 7:30 a.m., Milwaukee, Wis.

Monday, October 6, 2003

• State Rep. Ann Nischke (R-Waukesha), 5:00 p.m., Waukesha, Wis.

• State Rep. Jeff Stone (R-Greenfield), 5:00 p.m., Greenfield, Wis.