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Oct. 24, 2003
As we have
consistently and repeatedly reported, the weeks of November 3 and
10 are shaping up to be potentially monumental in addressing
issues intended to jump start our economy and to make Wisconsin an
even more attractive place to do business. The Legislature and
Administration are on the same page when it comes to issues that
need to be addressed and goals that need to be achieved. But, as
one key player observed recently, “the devil is in the details.”
There will be a lot of long hours and numerous negotiating
sessions and we’ll all look forward to a “Thanksgiving” holiday.
Policy Developments
Major Agreement
Reached on Transportation Bonding
On October 20, Speaker of the Assembly John Gard (R-Peshtigo) and
Senate Majority Leader Mary Panzer (R-West Bend) announced, as did
Governor Doyle, that legislators had reached an agreement with the
Doyle Administration on a major issue relating to transportation
bonding. (See announcements:
Gard,
Panzer,
Doyle.)
The issue was sparked when
Governor Doyle used his line item veto to eliminate $377 million in general
fund-supported bonds for highway projects and replaced it by vetoing in $1
billion in transportation fund-supported bonds. The Governor’s veto message
indicated his intent that only $565 million of the $1 billion in bonding
authority be used.
Assembly Speaker John Gard
took issue with the Governor’s veto and threatened litigation challenging
the Governor’s authority to use his veto power to increase spending. Both
sides recognize the importance of keeping transportation building projects
on schedule and this common objective set the stage for reaching a timely
resolution of the issue. The agreement is embodied in
AB 602, which
was introduced, recommended for passage by the Joint Finance Committee
(15-1), and passed in the full Assembly (82-11) on October 21. The bill was
then passed by the full Senate (27-5) on October 23.
Under AB 602, the amount of
general obligation bonding for highway projects would be reduced from $1
billion to $565 million. Further, the bill provides that, beginning July 1,
2005, debt service on the bonds will be paid from the general fund rather
than the transportation fund. The
Legislative Fiscal Bureau estimates the debt service change will
reduce transportation fund debt service costs by $69 million per year
starting in FY 2005, as those costs will now be picked up by the general
fund.
Governor Doyle Signs
Financial Modernization Legislation
On Wednesday, October 22, Governor Doyle signed
AB 2 as Act 63 of 2003. (See the Governor’s bill signing
statement.) The new law, dubbed “Financial Modernization Bill”,
aims to create a more level playing field in the arena of commercial lending
in Wisconsin. The law creates a new category of lending institutions, to be
called “Commercial Lenders,” which will include both traditional lenders
(banks) as well as non-bank lenders (credit unions). Under the new law, all
Commercial Lenders will have the opportunity to make business loans under
equal terms that previously were applicable only to traditional lenders.
Provisions of the new law
include:
-
Granting state-chartered
banks authorities similar to those granted to federally chartered
institutions by the Gramm-Leach-Bliley Act of 1999;
-
Correcting a major
drafting error in Article 9 of the Uniform Commercial Code that had
serious adverse consequences for lenders; and
-
Making changes to
Wisconsin’s
lien statute to give super priority to worker wage claim liens, within
certain thresholds and guidelines.
Civil Justice Bills Advance
Several bills relating to changes in our civil justice system were acted on
by the two houses and/or legislative committees during this past week.
Proponents of civil justice reform argue that the state’s legal/litigation
climate is a major economic development issue and plays a role in companies’
decisions regarding expansion and location decisions. Thus, they argue,
addressing these issues is consistent with the thrust of the fall floor
period which is directed at jobs and economic development. Recent civil
justice bill action includes:
-
SB 38, as amended by
Assembly Substitute Amendment 1, which severely limits the ability of
a person injured during the commission of a felony to recover damages for
those injuries, passed both houses this week and is headed to the Governor
for his action;
-
AB 548, which places a cap on the amount of an appeal bond to ensure a
fair opportunity for appeal, was recommended for passage (8-0) by the
Assembly Judiciary Committee on Tuesday and passed the full Assembly on a
voice vote on Thursday. The Senate will hold a hearing on this legislation
next week, and the full Senate is expected to act on the bill in early
November;
-
AB 317, relating to products liability changes (including bringing
Wisconsin’s standard for strict liability in line with the vast majority
of states) was recommended for passage on a 5-3 vote in the Assembly
Judiciary Committee after the Committee recommended adoption of
Assembly Substitute Amendment 1 to address some issues which were
raised at the public hearing; and
-
AB 595, introduced on October 15, would provide a civil liability
exemption for food manufacturers, marketers, packers, advertisers,
distributors and sellers for claims resulting from a person’s weight gain
or obesity caused by the consumption of food. (This potential new wave of
cases has received a lot of national attention.)
As previously reported,
SB 49, aimed at ensuring the reliability of expert testimony and expert
opinion evidence, has been recommended for passage by the Senate Judiciary
Committee, and proponents are hoping for floor action this fall.
Joint Finance Executive
Session Notice
On Tuesday, October 28, the Joint Finance Committee is scheduled to take
executive action on the following bills:
-
SB 249 and its companion bill
AB 531, relating to: certified capital investment limitations,
qualified business requirements, creating a certified capital company
income and franchise tax credit for insurers, certified capital company
office, qualified distributions of certified capital companies, certified
capital company net worth, certified capital company investment reporting
requirements, treatment of qualified investments that become nonqualified,
permitted nonqualified investments, reviews of certified capital company
financial statements, requesting a performance audit, and requiring the
exercise of rule-making authority; and
-
SB 261, relating to: creating 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,
requiring a study of new Wisconsin businesses, facilitating the
development of certain investor networks, and granting rule-making
authority; and similar bill,
AB 538.
The executive session is
scheduled to take place at 1 p.m. on Tuesday, in room 412 East.
Assembly GOP Announces
Health Insurance Plan
On October 21, Assembly Republicans
announced a four-point plan aimed at reducing health insurance
costs to the state and helping more Wisconsin citizens gain access to
affordable health insurance without increasing state spending. The plan
includes:
The plan is currently being
drafted into legislation and is expected to be referred to the Assembly
Insurance Committee when ready.
Senate Passes Legislation
Prohibiting Intentional Failure to Pay for Fuel
On Wednesday, October 22, the full Senate addressed
AB 232, relating to creation of penalties for failure to pay for
gasoline or diesel fuel. After active debate, the bill was passed by a vote
of 26-6. Under current law, anyone intentionally failing to pay for services
such as taxicabs, and hotel or restaurant services, may be subject to
misdemeanor or felony charges (depending upon the amount of the services
received and intentionally unpaid for). Current law additionally authorizes
a civil action for the victim of such intentional failure to pay for
services rendered.
AB 232 extends current law
penalties (for perpetrators) and benefits (for victims, e.g. authorization
of civil lawsuit) to the service of and failure to pay for gasoline or
diesel fuel.
Senate Passes Tax Credit
Legislation
On Wednesday, October 22, the Senate passed, on a voice vote,
AB 520, relating to the method of calculating technology zone tax
credits and the certification of businesses under the technology zone
program. (For further information and analysis of this bill, please see the
LFB Paper prepared for the Joint Finance Committee.)
Wisconsin
Politics
George Recall Primary Results
On October 22, state Sen. Gary George (D-Milwaukee) lost his
recall election by a vote of 4,538 (roughly 65 percent) to 2,477
(roughly 35 percent) in favor of replacing Sen. George with Rep.
Spencer Coggs (D-Milwaukee). Although a general election must
still be held on November 18 in order to accommodate a possible
write-in candidate, Rep. Coggs will be the only candidate on the
ballot; it is almost assured, therefore, that Rep. Coggs will win
the seat held for 23 years by Sen. George.
Attorney General Pushes
for “No-Spam” Law
On Friday, October 24, Attorney General Peg Lautenschlager
announced she is working with Sen. Bob Wirch (D-Kenosha) and Rep.
Joe Plouff (D-Menomonie), to design a legislative proposal for a “No-Spam”
law in Wisconsin. The legislation would aim to keep SPAM (or, unwanted email
solicitations) out of Wisconsin resident’s email in-boxes.
The proposed legislation
would:
-
Require unsolicited
commercial messages to begin their subject lines with “ADV;”
-
Require senders of
unsolicited commercial messages to establish a toll-free line for
consumers to call to remove their email addresses from the sending list;
-
Create a criminal fine
for violators; and
-
Allow the Department
of Justice and victims of unwanted email solicitation messages to pursue
civil damages.
Department of Veterans
Affairs Names New Secretary
On October 21, the Wisconsin Board of Veterans Affairs appointed John A.
Scocos as the new Secretary of the Wisconsin Department of Veterans Affairs
(WDVA). Scocos previously served as WDVA Deputy Secretary since January of
2002.
Federal Developments
EPA Reopens
Comments on Ozone
On October 21, the EPA published a
Federal Register notice reopening the public comment
period on its
Proposed Rule to Implement the 8-Hour Ozone National Ambient Air
Quality Standard (NAAQS or standard) that was published
on June 2, 2003. The original comment period on the proposed rule
closed Aug. 1, 2003; however, the EPA decided to reopen the
comment period until Nov. 5, 2003, based on comments received
relating to alternative approaches for the classification of ozone
nonattainment areas.
Class Action Legislation
On Wednesday, October 22, the U.S. Senate fell one vote short of the 60
needed on a motion to proceed to consideration of
S.1751, relating to reform of class-action lawsuits. Although both
parties believe reform in this area is necessary, the current form of the
bill was hotly contested along party lines – with Democrats believing the
bill took the reforms too far, with the potential to make class-action suits
too difficult on plaintiffs while making such suits easier to defend. (One
challenged provision would have made it easier for defendants to move a
class-action suit to federal court where less than two-thirds of the
plaintiffs are from the same state.)
Political News
Senate decorum crumbles: Wisconsin State Journal, Oct. 24, 2003.
Senate expands voucher program: Appleton Post-Crescent, Oct. 24,
2003.
Bill aims to
improve electricity reliability: Milwaukee Journal Sentinel, Oct.
24, 2003.
Mercury
debate draws GOP fire: Milwaukee Journal Sentinel, Oct. 23, 2003.
DNR Board
making changes to mercury rules: Janesville Gazette, Oct. 23, 2003.
Another
state agency voted in private: Milwaukee Journal Sentinel, Oct. 23,
2003.
Senate to
debate rewritten weapons bill: Milwaukee Journal Sentinel, Oct. 23,
2003.
Doyle signs financial modernization bill: Madison Capital Time's
Oct. 23, 2003.
Unemployment drops in metropolitan areas: Janesville Gazette, Oct.
23, 2003.
Lawmakers send message to spammers: Milwaukee Journal Sentinel, Oct.
23, 2003.
Bill to
reform class-action suits blocked: Milwaukee Journal Sentinel, Oct.
23, 2003.
Assembly
OKs higher fines for fleeing drivers: Milwaukee Journal Sentinel,
Oct. 22, 2003.
Committee
modifies concealed weapons bill: Milwaukee Journal Sentinel, Oct.
22, 2003.
Overturn of sales law is sought: Wisconsin State Journal, Oct. 22,
2003.
Voters
give George the boot: Milwaukee Journal Sentinel, Oct. 21, 2003.
Doyle: Highway projects may stall: Appleton Post-Crescent, Oct. 20,
2003.
State roadwork decisions due today: Green Bay Press-Gazette, Oct. 20,
2003.
Democrats’ tax plan no better than Republicans’: Appleton
Post-Crescent, Oct. 18, 2003.
State
gasoline minimum markup law fuels fight: Madison Capital Times, Oct.
18, 2003.
FTC
says gas price law hurts consumers: Madison Capital Times, Oct. 17,
2003.
Upcoming Fundraisers
Friday, October 24, 2003:
Saturday, October 25, 2003:
Monday, October 27, 2003:
Wednesday, October 29, 2003:
-
Women for Tom Barrett,
5:30 p.m.,
Milwaukee,
Wis.
-
St. Rep. Leah Vukmir (R-Wauwatosa),
5:30 p.m., Elm Grove, Wis.
-
St. Senate Democrat
Leader Jon Erpenbach (D-Middleton), 5:00 p.m., Washington D.C.
Thursday, October 30, 2003:
Friday, October 31, 2003:
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