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Nov. 17, 2003
The
Wisconsin
Legislature has concluded its regular fall floor period—BUT—there
is more to come in 2003. An Investment Capital “package”
(including changes to the CAPCO program) has passed the Senate
with the support and cooperation of the primary legislative
authors and the Administration. The Administration also agreed to
support a modified version of the major TIF initiative which
passed the Senate on Friday. There does, however, remain
unfinished business that will be addressed in December rather than
January. While the Legislature and the Administration reached
accord on the Capital Investment package and the TIF proposal,
much work is left to be done on most aspects of the omnibus
regulatory reform proposal that was introduced in the Legislature
early last week.
While both houses
recessed the regular session until Jan. 20, 2004, legislative leaders have
called the Legislature back for a December Extraordinary Session to deal, at
a minimum, with regulatory reform. (An Extraordinary Session is where the
Legislature calls itself back into session and sets the agenda as opposed to
a Special Session which is called by the Governor who sets the agenda.) In
the interim, the Governor and key Cabinet Secretaries will attempt to hammer
out differences that exist between their willingness to support aspects of
regulatory reform and the proposals that have been put on the table by
legislative leadership. It is also unknown if the call for the Extraordinary
Session will be expanded to include additional items, such as an effort to
bring finality to the Capital Investment and TIF items referred to above.
Policy Developments
Governor Signs
Technology Zone Tax Credit Legislation
On November 12, Governor Doyle
announced he had signed
AB 520, which makes significant changes in the technology zone
tax credit provisions and expands those eligible to benefit from
this important economic development program.
Governor Signs Measure to
Increase Hit-and-Run Penalties
On Wednesday, November 12, Governor Doyle
announced he had signed
AB 375, which increases the penalties for individuals who flee the scene
of a hit-and-run accident that results in death or great bodily harm.
Fall Floor Period Wrap Up
Late last week, the Legislature adjourned its fall floor period on Thursday,
November 13 (Assembly) and Friday, November 14 (Senate). Following are
highlights from last week’s actions relating to economic development and
other initiatives.
Regulatory Reform:
SB 313 and
AB 655: On Thursday, November 13, and Friday, November 14, the
Assembly and Senate (respectively) adopted identical motions calling for
an Extraordinary Session to address
SB 313 and
AB 655, the so-called ‘Jobs Creation Act of 2003.’ The
legislation was
introduced by Legislative leaders from both houses on Tuesday,
November 11, and had a public hearing before the Joint Committee on
Finance on Wednesday, November 12. The Committee did not vote on the
proposed legislation but rather allowed negotiations between the
Legislature and the Administration to continue during the week.
Legislative leaders ultimately decided to hold off voting on this
legislation until more of the concerns raised by the negotiations could be
addressed; thus, both houses determined it necessary to call for an
Extraordinary Session to address these bills next month.
The Extraordinary Session
is scheduled to begin on December 1, 2003; and, other bills relating to
job creation and economic development may be added. (See releases
regarding the Extraordinary Session from
Governor Doyle,
Sen. Majority Leader Mary Panzer, and
Assembly Speaker John Gard. Additionally, see the Governor’s
letter to the legislature regarding the Extraordinary Session.)
The legislation is aimed
at easing the regulatory burden on businesses currently operating or
possibly locating to
Wisconsin
by:
-
Clarifying Legislative
policy regarding administrative rule-making procedure, guidelines and
policies;
-
Establishing judicial
review of administrative rules;
-
Providing a requirement
that agencies prepare economic impact statements in certain instances
when considering certain proposed rules;
-
Providing for mandatory
Department of Administration (DOA) review of certain proposed rules;
-
Incorporating recently
promulgated federal reforms relating to the New Source Review (NSR)
program under the Clean Air Act (CAA);
-
Revising deadlines for
agency action on permit applications relating to construction or
operation of new or existing facilities; and
-
Streamlining overall
permitting processes within several state agencies.
Primarily, the changes
impact Chapters 30, 285 and 227 of the Wisconsin Statutes, relating to
permitting programs for water and air quality control, and Wisconsin’s
administrative rule-making procedure.
The effort to improve
Wisconsin’s
regulatory climate is supported by
Wisconsin Manufacturers and Commerce and the
Wisconsin Economic Development Association, among others.
AB 267: Additionally, the Senate passed and sent to the Governor
AB 267, relating to administrative rule making regarding small
businesses, data used by administrative agencies in preparing proposed
rules, creating an Internet site for proposed rules, and creating a Small
Business Regulatory Review Board. (The bill passed the Assembly in late
October.)
TIF
Proposals:
SB 305: On Friday, November 14, the Senate passed
SB 305 (as amended by
Senate Substitute Amendment 1), relating to Tax Incremental
Financing (“TIF”), on a bi-partisan
vote of 20-11 with 12 Republicans and 8 Democrates voting for,
5 Republicans and 6 Democrats voting against (with Sen. Welch abstaining
and Sen. George absent). The bill will receive a hearing by the Assembly
Ways and Means Committee on Wednesday, November 19.
The amended bill has
gained the support of the Administration, and was also recommended for
passage November 13 by a Joint Committee on Finance vote of 13-2. The
legislation continues to receive support from
The Wisconsin Economic Development Association.
See Sens. Stepp and
Lehmans’ November 13
letter to the Governor addressing the amended TIF proposal.
(For further details on this amended bill, please see the Hamilton
Consulting Group’s
Update.)
SB 306: Also on Friday, the Senate passed
SB 306 (trailer bill to
SB 305), which authorizes the Department of Revenue to impose a fee to
determine or redetermine the tax incremental base of a tax incremental
financing district, and requires the department to prepare a tax
incremental financing manual.
Capital Investment/CAPCO:
SB 261: On Friday, November 14, the Senate passed
SB 261 (as amended by
Senate Substitute Amendment 2), which would create a qualified new
business venture tax credit regarding investments in certified venture
capital funds and qualified new business ventures. The bill would also
require a study of new Wisconsin businesses to facilitate the development
of certain investor networks. (See an
Update on this amended legislation, prepared by Secretary
Nettles of Commerce and his office, posted on our website.)
SB 249: Additionally on Friday, the Senate passed
SB 249 (as amended by
Senate Substitute Amendment 1). The bill relates 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.
(For details on this amended legislation, see an
Update, prepared by Sen. Ted Kanavas and Jeremy Shepherd of the
Senator’s office, posted on our website.)
Power Lines/Plant Siting:
SB 300: On November 11 (Senate) and November 13 (Assembly),
SB 300 (as amended by
Senate Substitute Amendment 1), passed through the Legislature and
will now be sent to the Governor for action. The bill relates to
construction of electric generating facilities and transmission lines, and
grants rule-making authority. If signed, the legislation would change
current law by:
-
Altering the
requirements by which the Public Service Commission (PSC) may grant
permits for construction of new electric generation facilities or
transmission lines;
-
Altering the
requirements for the Department of Natural Resources (DNR) issuance of
environmental permits for the construction of new electric generation
facilities or transmission lines;
-
Modifying utility aid
payments; and
-
Declaring a state
policy regarding siting of electric generating facilities and
transmission lines.
Other Legislation:
AB-633: On November 12, the Assembly voted 55-40 to pass
AB-633, relating to preemption of county, city, village, or town
living wage ordinances.
AB 507: On November 4 (Assembly) and November 13 (Senate), the
Legislature voted to pass
AB 507, relating to the income and franchise tax credit for sales tax
and use tax paid on fuel and electricity consumed in manufacturing.
AB 508: On November 12, the Assembly passed
AB 508, relating to the income and franchise tax credit for sales tax
and use tax paid on fuel and electricity consumed in manufacturing
(including refundability of tax credits for development and technology
zones). The bill has been referred to the Senate Committee on Economic
Development, Job Creation and Housing.
SB 272: On November 13, the Senate passed
SB 272, relating to local government telecommunications utilities and
public hearings for ordinances and resolutions authorizing local
government cable television, telecommunications, and Internet access
facilities.
Wisconsin
Politics
Senate
Confirmation Action
On Tuesday, November 11, the Senate voted unanimously to confirm
Lorrie Keating Heinemann’s appointment as Secretary of the
Department of Financial Institutions.
Federal Developments
Sykes Nomination
Sent to Senate
On November 14, President Bush formally
sent his nomination of Wisconsin Supreme Court Justice Diane
Sykes for the United States Court of Appeals for the Seventh
Circuit to the Senate for confirmation. See Justice Sykes’
statement regarding her nomination.
Political News
Hit-and-run law erases loophole: Wausau Daily Herald, Nov. 16, 2003.
Senate OKs
tax breaks, tech centers to lure capital: Milwaukee Journal
Sentinel, Nov. 15, 2003.
Senate
fails to override veto of funding for attorneys: Milwaukee Journal
Sentinel, Nov. 15, 2003.
It's
official: Sykes nominated for U.S. appeals court: Milwaukee Journal
Sentinel, Nov. 15, 2003.
Lawmakers
delay Marotta's confirmation: Madison Capital Times, Nov. 15, 2003.
Regulations
hinder state's paper industry advances: Milwaukee Journal Sentinel,
Nov. 16, 2003.
Economic growth program sputters: Marshfield News Herald, Nov. 16,
2003.
Republicans not taking care of economic business (opinion): Oshkosh
Northwestern, Nov. 16, 2003.
Environmental,
energy needs clash in state: Janesville Gazette, Nov. 16, 2003.
Experts push for stronger seat belt law in Wisconsin: Wisconsin
State Journal, Nov. 17, 2003.
Tougher
seat belt law pushed: Milwaukee Journal Sentinel, Nov. 17, 2003.
Jobs
creation plan won't harm environment, GOP says: Milwaukee Journal
Sentinel, Nov. 14, 2003.
Economic session chance for redemption (opinion): Appleton
Post-Crescent, Nov. 14, 2003.
Bill opposing wage hike advances: Wisconsin State Journal, Nov. 14,
2003.
Paper firms could be hit with tariffs: Appleton Post-Crescent, Nov.
14, 2003.
Republican lawmakers say bill will create jobs: Green Bay
Press-Gazette, Nov. 13, 2003.
GOP
introduces long economic stimulus bill list: Wisconsin State
Journal, Nov. 12, 2003.
Lawmakers
seek to ease regulatory process: Milwaukee Journal Sentinel, Nov.
12, 2003.
Upcoming Fundraisers
Monday, Nov. 17, 2003
-
St. Rep. Mary Williams
(R-Medford), 5:00 p.m., Phillips, Wis.
-
St. Rep Reps. Judy
Krawczyk, Karl Van Roy and Becky Weber (Republicans-Green Bay), 5:30 p.m.,
Green Bay, Wis.
Tuesday, Nov. 18, 2003
Wednesday, Nov. 19, 2003
Thursday, Nov. 20, 2003
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