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Oct. 17, 2003
During next
week’s floor sessions, both houses of the Legislature are expected
to deal with controversial bills (concealed carry, same sex
marriage) which are not on the jobs creation/economic development
agenda. Joint Finance, in the meantime, has recommended a number
of bills (see below) which are directed at areas of “regulatory
reform” and spurring expansion, retention and attraction of jobs
via some significant tax credit changes. Some of these proposals
may be dealt with next week, but the real focus on jobs and
economic development will occur during the floor periods to be
held the weeks of November 3 and 10. Next week, and in particular
the week of October 27, should see very extensive committee
activity on high profile proposals aimed at improving Wisconsin’s
business climate and boosting economic activity.
Policy Developments
Joint Finance
Supports “Presumptive Approval” and Tax Credit Bills
The Joint Committee on Finance (JFC) met for the better part of
two days this week and made significant recommendations to both
houses of the Legislature on proposals that are part of the
regulatory reform debate and several bills relating to treatment
of various tax credit programs. (JFC also took action on bills
related to school choice, charter schools and stewardship
acquisitions.)
Joint Finance adopted and
recommended passage of identical Senate and Assembly Substitute Amendments (Assembly
Substitute Amendment 1) to
AB 486 and
SB 246, relating to state agency application and permit approvals and
permit deadlines. The Substitute Amendments reconcile the differences
between the two bills, each of which previously passed the house of origin.
(AB 486 on a vote of 67-32 on 10/2 and SB 246 on a vote of 20-13 on 9/23.)
Both bills were recommended for passage by JFC on a 12-4 partisan vote. SB
246 has already been scheduled for floor action in the Assembly on Tuesday,
October 21. Action on the bill as amended by Substitute Amendment 1, by
either house, will require the bill to return to the first house for
concurrence. (For further information and analysis on these two bills and
the Substitute Amendment, please see the LFB Papers prepared for JFC:
LFB Paper on AB 486;
LFB Paper on SB 246; and
LFB Paper on Substitute Amendment 1.)
On an 11-4 vote, JFC also
recommended passage of
AB 508, which would increase, from 15 to 20, the number of years unused
income and franchise tax credits for sales on fuel and electricity used in
manufacturing could be carried forward. The Committee also adopted an
amendment making various development and technology zone tax credits
refundable beginning in taxable years after Dec. 31, 2005. (For further
information and analysis, please see the
LFB Paper on AB 508, prepared for JFC.)
In a related action, JFC,
on a vote of 16-0, recommended passage of
AB 520 and
SB 248 relating to the method of calculating technology zone tax credits
and the certification of businesses under the program to expand eligibility
to many entities who do not currently qualify. (For further information and
analysis on these bills, please see the
LFB Paper prepared for JFC.) On a 12-4 vote, the Committee also
recommended
AB 507 which creates a sales tax exemption for fuel and electricity used
in manufacturing. JFC made numerous changes, Motion 853, to the original
bill. (For further information and analysis on AB 507, please see the
LFB Paper prepared for JFC.)
Agriculture Agenda Outlined by Governor and Assembly Republicans
Acknowledging that agriculture is a $40 billion per year industry in
Wisconsin, Gov. Jim Doyle
unveiled his agriculture agenda this week and pledged to work with
Legislative Republicans, while visiting family farms throughout Wisconsin.
Doyle’s agricultural initiative, which is outlined in his
Grow Wisconsin plan, will establish a state dairy team; provide
investment tax credits; expand the dairy artisan and specialty cheese
industry; promote the Agricultural Stewardship Initiative; expand organic
food production; and, create a Rural Finance Authority. In addition, Doyle
has called for the Legislature to pass
AB 447 and
SB 204, which create health care purchasing cooperatives for farmers.
Rep. Al Ott (R-Forest
Junction), with other Republican legislators, also unveiled their
“Agricultural Renewal Initiative” this week, which aims to improve and
promote the agriculture industry in Wisconsin. The Republican initiative is
similar to Doyle’s but also includes a dairy investment tax credit (AB
283); ethanol production incentives; livestock facility siting
standards; permitting town TIF’s (AB
437); enacting a Wisconsin Cooperative Association Act; and, premise
identification for livestock.
Wisconsin Politics
Burke to Stand Trial
Dane County Circuit Judge Angela Bartell ruled Monday that former
State Senator Brian Burke must stand trial on all 18 felony
charges filed against him as the result of the Capitol caucus
investigations. Burke was charged almost a year and a half ago
with soliciting campaign contributions within the Capitol,
withholding subpoenaed documents, and falsifying legislative per
diem reports.
Gary
George Recall Election Set for Tuesday
State Senator Gary George (D-Milwaukee) will face a primary recall election
on Tuesday, October 21.
On Tuesday, October 14, the
State Supreme Court
denied Sen. George’s petition for Supreme Court supervision of the
pending Court of Appeals decision allowing the recall election to go
forward. The Supreme Court anticipated the Court of Appeals would issue its
ruling prior to next Tuesday’s primary election.
George is being
challenged by Rep. Spencer Coggs (D-Milwaukee), who is being supported by
the “Committee to Recall Gary George.” Rep. Coggs has represented the 17th
Assembly District in Milwaukee since 1982. Since there are no other
candidates in the race for the 6th Senate District, the winner of
Tuesday’s election is expected to win the general election on Nov. 18.
Commerce Establishes Bureau
of Entrepreneurship
On October 14, the Wisconsin Department of Commerce (DOC)
announced its plans to establish a Bureau of Entrepreneurship
within the agency’s Division of Business Development. Bureau activities will
include:
- Conducting outreach
to emerging technology companies in Wisconsin;
- Assisting Wisconsin’s
efforts to win federal funds for research and development, such as Small
Business Innovative Research Program grants; and
- Assisting small and
start-up businesses in locating resources and complying with state and
federal regulations
Federal Developments
FCC Approves SBC
Midwestern Long-Distance Bid
On October 15, the Federal Communications Commission (FCC)
announced that it had approved the SBC Communications,
Inc. (SBC) application to offer long-distance telephone services
in four remaining Midwestern states, including:
Ohio,
Indiana,
Illinois, and Wisconsin. (See SBC Wisconsin President Paul La
Schiazza’s
statement on the FCC’s October 15th ruling.)
The FCC
order grants SBC authority to provide in-region, interLATA services in
the four states, based on the Commission’s conclusion that SBC had taken the
proper statutory steps to open its local exchange markets in the four states
to competition.
Omnibus Spending Bill on
the Horizon?
Next Thursday, October 23, Congress’s funding extension will run out, but
several spending bills have yet to see action. So far, Congress has acted on
only three of 13 spending bills, leaving the remaining bills to await action
by the end of the already highly scheduled, and nearly concluded floor
period. (It was reported that Congress may adjourn as early as Veterans Day,
in early November.)
With little time left, and
several bills to consider, some have begun to speculate that Congress will
roll the remaining bills into an Omnibus Spending Bill. Bills awaiting
action include: the Transportation/Treasury appropriations bill, including
$33.8 billion for highways; Agriculture; Commerce; Justice; State; Foreign
Operations; and VA-HUD.
Political News
Dems prepare new property tax proposal: Manitowoc Herald
Times,
Oct. 17, 2003.
Senate Democrats offer proposal to limit tax increases: Milwaukee
Journal Sentinel,
Oct. 16, 2003.
Paper firms could get a tax break: Appleton Post-Crescent,
Oct. 17, 2003.
Tax tweak for manufacturers: Milwaukee Journal Sentinel,
Oct. 17, 2003.
Concealed carry bill bad to the bone (opinion): Appleton Post-Crescent,
Oct. 15, 2003.
Judge orders Burke to trial on felony counts: Wisconsin State Journal,
Oct. 14, 2003.
Department of Commerce establishes Bureau of Enterpreneurship: Milwaukee
Business Journal,
Oct. 14, 2003.
Streamlined sales tax merits state's support (opinion): Wisconsin State
Journal, Oct. 13,
2003.
Lawmakers still await day in court: Appleton Post-Crescent, Oct. 13,
2003.
Businesses forge alliance to save jobs: Milwaukee Journal Sentinel,
Oct. 12, 2003.
Businesses forge alliance to save jobs: Milwaukee Journal Sentinel,
Oct. 12, 2003.
Strong Hill lends strength to regulation, licensing: Green Bay
Press-Gazette, Oct.
12, 2003.
Democrats looking at Chvala's seat: Milwaukee Journal Sentinel,
Oct. 12, 2003.
Return to Wisconsin program has low risk, high reward potential (opinion):
Oshkosh Northwestern,
Oct. 12, 2003.
Minnesota corporations check out Wis.: Marshfield News Herald,
Oct. 11, 2003.
Minnesota corporations check out Wis.: Marshfield News Herald,
Oct. 11, 2003.
Delegation from Wisconsin to address China’s trade practices: Manitowoc
Herald Times, Oct.
10, 2003.
Delegation from Wisconsin to address China’s trade practices: Manitowoc
Herald Times, Oct.
10, 2003.
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