Political Tidbits

Wisconsin political news for clients and colleagues.

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Oct. 18, 2005

The big news this week is the anticipated advancement of civil justice bills in response to several 2005 Wisconsin Supreme Court cases. (See below) As we have frequently reported, legislative response to these cases has risen to the top of the Wisconsin Legislature’s agenda for the upcoming fall floor period. The three cases in question involved: 1) the interpretation (or re-interpretation) of Wisconsin’s standards for the award of punitive damages; 2) the striking down of caps on the amount of noneconomic damages (e.g. pain and suffering) that can be awarded in medical malpractice cases; and, 3) the establishment of a “risk contribution” theory for the recovery of damages from manufacturers and sellers in product liability cases that exists nowhere else in the country.

This incredible string of cases has raised the ire of legislators and others who believe that the justices who were in the majority in theses cases are engaged in judicial activism that constitutes legislating from the bench. Economic development professionals and business leaders are concerned about the impact these cases have on business expansion and location decisions. Neither our government nor our civic leaders relish picking up a Wall Street Journal that editorializes about Wisconsin being “Alabama North,” and citing the manufacturer/seller liability decision as “the first of its kind in the country and establishes a dangerous precedent.”

Wisconsin’s previously enviable reputation for “litigation atmosphere” had dropped from 10^th to 17^th between 2004 and 2005, before the recent court cases, presumably because Wisconsin lags behind most of the country in its standards for the admission of expert opinion evidence and its test for determining strict/product liability. Unless there is a comprehensive response to our current legal environment, there is little doubt that our ranking will plummet well below the 50^th percentile.

Policy Developments

Malpractice Limits/Manufacturer Liability Bills Proposed
Legislation that places limits on jury awards in medical malpractice lawsuits was introduced this week. Assembly Bill 766, that re-establishes a cap on noneconomic damages in medical malpractice cases, is scheduled for a public hearing today, Tuesday October 18, an executive session on Wednesday and may be scheduled for Assembly floor action as early as next Tuesday, October 25.

LRB 3756 and its companion LRB 3851, relating to manufacturer/seller liability in response to the Thomas case, have been scheduled for public hearing this Thursday, October 20 before a joint meeting of the Assembly and Senate Judiciary Committees. Floor action is expected the week of October 31.

Governor Doyle Secures Agreement to Preserve SeniorCare
Gov. Jim Doyle recently announced that Wisconsin’s prescription drug assistance program, known as SeniorCare, will be allowed to continue at least through June 30, 2007. The agreement, which is the result of negotiations with the federal government, will affect about 90,000 participants in the subsidy program. As part of that deal, the state is to work with the Centers for Medicare and Medicaid Services to create a hybrid program featuring enhanced benefits for those Wisconsin seniors who choose Medicare Part D.

The future of the state program was in question with the implementation of the federal Medicare Part D prescription drug program beginning in January 2006.

Manufacturing Study Provides a Roadmap to Future Growth, Success
Wisconsin manufacturers must adapt to a fast-changing world in order to grow and succeed in the 21st century. That is the thrust of a major study of the state’s industrial economy recently released by the Wisconsin Manufacturing Extension Partnership (WMEP) and authored by the Manufacturing Performance Institute, an Ohio-based research firm.

The study provides insight into the current state of Wisconsin manufacturing which is still a tremendous engine for growth. The report identifies driver industries within manufacturing that strongly impact our economy and specific recommendations to help these driver industries continue their growth into the future.

Assembly Committee Questions DNR Ethanol Report
The Assembly Rural Affairs and Renewable Energy Committee has asked DNR Secretary Hassett to, in effect, justify the department report detailing ozone air quality effect of a 10% ethanol blended gasoline in Wisconsin. The committee, in a letter to Hassett, said the report “drew interesting conclusions, but also raised many questions.”

In its letter, the committee states that DNR mischaracterized the impacts of ethanol blending by using inappropriate methodologies to analyze available air quality data which should not be relied upon to determine renewable fuels policy in Wisconsin.

Doyle Responds to Energy Report
The U.S. Department of Energy on Oct. 12 released a report on expected increases in home energy costs, concluding that natural gas bills for households in the Midwest would rise by 61 percent this season. Governor Doyle called on the federal government to take strong action in order to help families. In suggesting that the Bush Administration and Congress could increase funding for low-income energy assistance, Doyle reiterated his commitment to helping Wisconsin families through his Energy Help initiative.

Committee Gathers Information on Emergency Readiness
A Senate committee recently held an informational hearing on Wisconsin’s emergency readiness and disaster preparedness. The hearing follows a recent report that reviewed Wisconsin’s preparedness plans.

The report found that while each of Wisconsin’s 72 counties has an evacuation plan that would work for the most likely types of emergencies – for our largest cities, those evacuation plans would not be adequate in the event of a large scale catastrophe like Hurricane Katrina.

Doyle Vetoes Conscience Clause
On Friday, Oct. 14, Governor Doyle vetoed Assembly Bill 207, a bill that would have allowed medical professionals to deny care to patients based on the medical professional’s own ideological beliefs. Saying that the bill would allow doctors and other health care providers to put their "political beliefs" ahead of the patients' best interests,

Doyle added that the bill could deny medical care to those in rural areas who may have a limited pool of health providers from which to choose.

Other action: AB-270 (donation of newborn umbilical cord blood) and AB-499 (cloning ban) are currently awaiting action by the Governor following passage by the legislature. The Assembly Health committee will hold and executive session for AB-321 and SB-138, voluntary and informed consent for abortions, on Oct 25, in room 417-N of the state Capitol.

Parenting Bills Introduced
AB-751 [companion bill SB-369]: Under current law, a man who is determined to be the father must contribute to the reasonable expenses of the mother’s pregnancy and the child’s birth based on the man’s ability to pay.

A recent Wisconsin Court of Appeals decision based on this statute held that, if the father has no present ability to pay, a circuit court has no authority to set an obligation to pay lying-in expenses, even if payments are held in abeyance. This bill requires the court to establish the amount of the father’s obligation to pay.

AB-754: Requires W-2 grant recipients with an infant to attend parenting skills training and to meet with a financial and employment planner.

Political News

The winner of our discontent? Milwaukee Journal Sentinel, Oct. 16, 2005.

Doyle Vetoes Health-care Refusal Bill: Wisconsin State Journal, Oct. 16, 2005.

Wind power also has economic benefits: Sheboygan Press, Oct. 16, 2005.

Gas prices riling people in state, new poll says: Milwaukee Journal Sentinel, Oct. 16, 2005.

Gas prices cost taxpayers thousands: Baraboo News Republic, Oct. 16, 2005.

A better state for biotech? Milwaukee Journal Sentinel, Oct. 15, 2005.

Values give state an edge, governor says: Milwaukee Journal Sentinel, Oct. 15, 2005.

High taxes and workforce challenge state's manufacturers: Hudson Star-Observer, Oct. 14, 2005.

SeniorCare extension is good news for Wisconsin's elderly (opinion): Sheboygan Press, Oct. 13, 2005.

Capital gains on funds may induce tax shock: Milwaukee Journal Sentinel, Oct. 16, 2005.