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Oct. 3, 2003

The Wisconsin Legislature is taking a two week break from floor debate and action as members are fine tuning major pieces of job creation and economic development legislation. This effort includes working out differences among members, between the two houses and between the Legislature and the Administration. Meanwhile, a major appellate court decision was handed down affirming significant legislative action from the 1995 legislative session, and the financial modernization/wage lien issue was addressed by both houses of the Legislature.

Policy Developments

Appeals Court Reverses Punitive Damage Award
On Wednesday, September 30, the Wisconsin District I Court of Appeals overturned a $94,000,000 punitive damage award in the law suit involving the Big Blue crane collapse during the construction of Miller Park. The award was granted at the trial court level to the families of three ironworkers who were killed as a result of the collapse. The case had no impact on compensatory damages and the $27 million that has already been paid to the plaintiffs.

The case is particularly significant because the court held that the punitive damage award was contrary to the “unambiguous” language of the Wisconsin statute which was adopted in the 1995 session of the Wisconsin Legislature. The court recognized that the Legislature clearly intended to narrow rather than expand cases where punitive damages may be awarded. (Punitive damages were originally created to use the civil justice system, rather than the criminal justice system, in certain cases, to punish and deter egregious conduct. Unlike compensatory damages, punitive damages are not intended to compensate plaintiffs for any loss.)

The Court of Appeals held, in its Sept. 30^th decision (Patricia Wischer v. Mitsubishi Heavy Industries), that the phrase “intentional disregard of the rights of the plaintiff” in Wis. Stat. Sec. 895.85(3) can only be reasonably interpreted to require either an intent by defendant that harm will result or knowledge that the defendant’s conduct is practically certain to result in accident or injury.

 Legislature Passes Financial Modernization/Wage Lien Bill
The state Legislature passed and sent to the Governor bill AB 2 that addresses “financial modernization” wage lien claims and an obscure provision in the Uniform Commercial Code (UCC Article 9). What started out approximately six years ago to be a straight forward effort by banks and credit unions to: 1) ease restrictions on formation and operation of credit unions; and, 2) allow state banks and savings banks to offer the same services as federally chartered banks—became very contentious because of issues related to the priority of wage liens. In the two previous sessions, Senate Democratic leadership refused to pass financial modernization unless the legislation also included a super priority status (ahead of financial institutions) of wage claim liens with some “reasonable” threshold cap. The wage lien proposal was opposed by the financial institutions as well as large and small businesses and the economic development community. (The opposition was based on concerns related to the availability and cost of money by imposing an unknown risk on all loans to businesses and owners.) As a result, nothing passed.

To further complicate matters, when Wisconsin revised its Uniform Commercial Code language, a “drafting error” in Article 9 resulted in the “non-dischargeability” of all subordinate state and local government liens. Article 9 has been used to recover monies due under wage liens as well as other security interests and subordinate liens that previously were discharged. The Article 9 issue presented a larger scale problem than allowing super priority status to wage liens with a reasonable threshold cap. Thus, Assembly Bill 2 “corrects” the Article 9 issue; provides for “financial modernization”; and, provides a super priority status for the first $3,000 of unpaid wages per worker filed as a wage claim lien. Ironically, those who supported inclusion of the wage claim lien in the past now opposed its inclusion as a limitation on, rather than an expansion of, the amount of wages that may be collected ahead of the financial institution’s lien or liens. It will be interesting to see what the Governor does.

Assembly Supports Permit Processing Bill
On Thursday, October 2, the State Assembly passed AB 486, which would require state agencies to establish and meet permit and license application deadlines, referred to as the “presumptive approval’ bill. Last week the Senate passed SB 246, which is identical to AB 486. The Governor has indicated his opposition to the proposal in its current form.

Assembly Passes Patients Compensation Fund Bill
Wednesday, October 1, the full Assembly passed 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). The bill will now go to the Senate for consideration.

Assembly Fails to Override Governors Voter ID veto
On Thursday, October 2, the Assembly considered the Governor’s Aug. 5, 2003 veto of AB 111, the “Voter ID” bill. The bill required identification in order to vote at a polling place or obtain an absentee ballot. The bill passed the Assembly in March, the Senate in June, and was vetoed by the Governor in August. The override failed on a vote of 61-37, five votes short of the required 2/3 needed for a veto override.

Committee Recommends Expert Opinion Evidence Bill
On Thursday, October 2, the Senate Judiciary voted 3-2 to recommend passage of SB 49 that is aimed at ensuring that admitted evidence in Wisconsin cases will be credible and reliable and would be required to be presented by a genuine expert. The standards incorporated in this bill are in effect throughout the federal system and in 33 states.

Wisconsin Politics

Former DWD Secretary to head Madison Chamber
Jennifer Alexander has been named the new president of the Greater Madison Chamber of Commerce, effective Jan. 1, 2004. Alexander was Secretary of the Department of Workforce Development for over two years and spent many years as an educator and administrator. She replaces Bob Brennan who led the Chamber for 30 years.

Governor Appoints Energy Task Force to Address Conservation and Renewable Power
On Monday, September 29, Governor Doyle announced the members of his Energy Efficiency and Renewables Task Force. According to the Governor, the Task Force is being charged with developing creative, consensus ideas for restoring Wisconsin leadership in conservation and renewable energy.

Federal Developments

Leavitt Gets Senate Confirmation Hearing
On September 23, President Bush’s nominee for administrator of the Environmental Protection Agency (EPA), Gov. Michael O. Leavitt (R-Utah), received a Confirmation Hearing from the Senate Environment and Public Works Committee. The Committee is expected to recommend that the full Senate confirm Leavitt’s nomination.

Census Bureau Releases Health Insurance Coverage Report
On September 30, the U.S. Bureau of the Census announced the release of its study, Health Insurance Coverage in the United States: 2002. According to the report, the number of insured individuals rose by 1.5 million, and the number of uninsured individuals rose by 2.4 million between 2001 and 2002. The overall decrease in health insurance coverage was attributed to the drop in individuals covered by employer-sponsored insurance plans. The increase in covered individuals was largely due, according to the report, to an increased enrollment in government programs, such as Medicaid.

Political News

Legislators fire back at UW System seeking accountability: Wisconsin State Journal, Oct. 3, 2003.

Doyle tries to protect no-call list: Wisconsin State Journal, Oct. 3, 2003.

Veto of voter ID bill falls short: St. Paul Pioneer Press, Oct. 3, 2003.

Jobs outlook a key issue in Bush visit: Milwaukee Journal Sentinel, Oct. 3, 2003.

President to speak in Wisconsin: Manitowoc Herald Times, Oct. 3, 2003.

Assembly passes permit overhaul bill: St. Paul Pioneer Press, Oct. 3, 2003.

Assembly bills may deepen voucher divisions: Milwaukee Journal Sentinel, Oct. 3, 2003.

Television ad slams Bush’s environmental policy: Green Bay Press Gazette, Oct. 3, 2003.

Two papermills join PCB cleanup deal: Green Bay Press-Gazette, Oct. 2, 2003.

Bill would allow more HIV tests: Milwaukee Journal Sentinel, Oct. 2, 2003.

Bill changes bankruptcy-debt rules: Wisconsin State Journal, Oct. 1, 2003.

Legislators to consider Capitol cable coverage: Wisconsin State Journal, Oct. 1, 2003.

Advocates push for domestic-violence bills: Green Bay Press-Gazette, Oct. 1, 2003.

New drunken driving limit takes effect: Milwaukee Journal Sentinel, Oct. 1, 2003.

Bill gives paper mills tax breaks: Green Bay Press-Gazette, Sept. 30, 2003.

State Assembly OKs taxpayer protection: Manitowoc Herald Times, Sept. 29, 2003.

Bush campaign kicks off in state: Milwaukee Journal Sentinel, Sept. 28, 2003.

Regulating the regulators (opinion): Milwaukee Journal Sentinel, Sept. 28, 2003.

Bill to protect state do-not-call list: Appleton Post-Crescent, Sept. 28, 2003.

Hearings set on pro-business bills: Appleton Post-Crescent, Sept. 28, 2003.

Doyle to visit China on trade trip: St. Paul Pioneer Press, Sept. 27, 2003.

Powerline hearings to be held: Ashland Daily Press, Sept. 26, 2003.

Utility files to build new generating unit: Milwaukee Business Journal, Sept. 26, 2003.

Upcoming Fundraisers

Monday, Oct. 6

• Rep. Jeff Stone (R-Greenfield) : Polish Community Center, Milwaukee, 5:00 p.m.
• Rep. Ann Nischke (R-Waukesha) : The Landing, 100 E. Main Street, Waukesha, 5:00 p.m.

Wednesday, Oct. 8

• Rep. Lena Taylor (D-Milwaukee) : Eve, 718 N. Milwaukee Street, Milwaukee, 5:30 p.m. $50 suggested contribution. PAC not accepted.

• Gov. Jim Doyle : Casea Capri, 2129 Birch Road, Kenosha, 6:00 p.m. $25 per person.

Saturday, Oct. 11

• Sen. Bob Wirch (D-Kenosha) : Becca's Cafe, 4015 80th Street, Kenosha, 7:00 p.m.