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Nov. 21, 2003

As previously reported, both houses of the Legislature concluded their regularly scheduled fall floor sessions last week. There is, however, more work to be done to complete the economic development agendas that have been articulated by Governor Doyle and Legislative leadership. That work continues via intense negotiations on proposed regulatory reform measures. Additional legislative activity is scheduled for December as part of an Extraordinary Session of the Wisconsin Legislature. The exact timing of legislative action will depend on the ability of the Administration and Legislature to arrive at consensus on specific changes in Wisconsin law directed at improving our regulatory climate — a goal which is shared by both. It is also likely  that other economic development measures, including TIF and Capital Investment bills, which have support from the Administration and Legislative leadership, will be added to the Extraordinary Session.

[In this edition of Tidbits, we have also listed several bills that have passed both houses of the Legislature and are being reviewed by the Governor and his policy advisers to determine what action (sign or veto) the Governor should take.]

Policy Developments

Legislators Set Hearing, Create Committee for Jobs Bills
Last week, near the end of the fall floor period, both the Assembly and the Senate adopted a motion calling for an Extraordinary Session (set to begin the week of Dec. 1) to address AB 655 and SB 313, jointly dubbed the "Jobs Creation Act of 2003." The companion bills were introduced by Legislative leaders on November 11. (See last week’s Tidbits, for more on this legislative effort.)

On Wednesday, November 19, Assembly Speaker John Gard (R-Peshtigo) announced the creation of an Assembly Select Committee on Job Creation for the purpose of holding public hearings and finalizing proposals for the Legislature’s Extraordinary Session on Job Creation.

Gard named eight Representatives to the Committee, including Rep. Jean Hundertmark (R-Clintonville), to serve as Committee Chair. (Other members of the Committee, named then and afterward are: Reps. DuWayne Johnsrud (R-Eastman), Glenn Grothman (R-West Bend), Dan Meyer (R-Eagle River),  Judy Krawczyk (R-Green Bay),  Jon Richards (D-Milwuakee), Dan Schooff (D-Beloit), and Bob Ziegelbauer (D-Manitowoc).)

On Thursday, November 20, the Committee announced a public hearing, to take place prior to the December 1 Extraordinary Session start date. Committee members stated that the bills would receive a joint hearing before the Senate Select Committee on Job Creation (co-chairs: Sens. Ted Kanavas (R-Brookfield) and Cathy Stepp (R-Sturtevant); and members: Sens. Joe Leibham (R-Sheboygan), Chuck Chvala (D-Madison), and Robert Jauch (D-Poplar)), and the newly-formed Assembly Select Committee on Job Creation on Tuesday, November 25. The hearing is scheduled for 11:00 a.m., at the Milwaukee Area Technical College, 700 West State Street, Room S 120. There are likely to be additional hearings in other locations in early December.

Enrolled Bills of Interest
Following is a partial list of enrolled bills (bills that have passed both houses in identical form and are awaiting action by the Governor.) For a complete list of all bills currently enrolled, please visit the Legislature’s website.

Assembly Bills:

• 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 458: relating to operating a vehicle or operating or going armed with a firearm after using certain controlled substances and providing penalties.

• AB 121: relating to recruitment, training, certification, and compensation of election officials.

• AB 548: relating to limiting the amount of appeal bonds set by a court in a civil action.

• AB 487: relating to the purpose and integrity of the patients compensation fund and changing its name to the injured patients and families compensation fund.

• AB 592: relating to supplemental Medical Assistance payments to county, city, town, or village nursing homes and making an appropriation.

• AB 79: relating to authorizing the Wisconsin Health and Educational Facilities Authority to issue bonds to finance a project undertaken for a facility used for education by a private, tax-exempt institution.

• AB 98: relating to creating an individual and corporate income tax exemption for interest on bonds or notes issued by the Wisconsin Housing and Economic Development Authority for purposes related to multifamily and elderly housing projects.

• AB 228: relating to environmental compliance audits, environmental management systems, providing incentives for improving environmental performance, providing immunity from civil penalties for certain violations of environmental requirements, access to certain information, granting rule-making authority, and providing a penalty.

• AB 71: relating to threats to release or disseminate harmful chemical, biological, or radioactive substances and providing a penalty.

• AB 267: relating to administrative rule making regarding small businesses, data used by administrative agencies in preparing proposed rules, increasing attorney fees, creating an Internet site for proposed rules, and creating a Small Business Regulatory Review Board.

• AB 48: relating to mailing property tax bills.

• AB 130: relating to creating a new method for towns to consolidate.

• AB 251: relating to designating public depositories for the payment of property taxes.

Senate Bills:

• SB 38: relating to eliminating recovery for persons injured while involved in a felony.

• SB 300: relating to construction of electric generating facilities and transmission lines, and granting rule-making authority.

• SB 170: modifying a number of veterans’ benefits, including the purposes of veterans’ programs, eligibility and benefit levels.

• SB 204: relating to authorizing a health benefit purchasing cooperative pilot project and granting rule-making authority.

• SB 168: relating to enforcement of the one- and two-family dwelling code in certain cities, villages, and towns.

Governor Signs Bills

On Thursday, November 20, Governor Doyle announced the signing of the following five bills:

• SB 176, relating to authorizing municipal insurance mutuals to provide property insurance;

• AB 62, relating to dispositional orders for truancy or habitual truancy and the disclosure of juvenile records by a juvenile court or a municipal court;

• AB 141, relating to the eligibility of employees of cities, villages, towns, and counties to

• be candidates for elective public office;

• AB 232, relating to failure to pay for gasoline or diesel fuel and suspension of operating privileges after conviction for theft of gasoline or diesel fuel and providing penalties;

• AB 252, relating to housing of county prisoners from Michigan in Wisconsin county jails.

Committee Holds Hearing, Sets Executive Session for TIF Bills
On Wednesday, November 19, the Assembly Committee on Ways and Means held a public hearing on AB 654 and AB 653, relating to changes to Tax Incremental Finance (TIF). Companion bills SB 305 and SB 306 passed the Senate last Friday, November 14. The Assembly Committee has scheduled a vote on the bills for Wednesday, December 3. For further details on these bills, see the Hamilton Consulting Group’s Update.

Governor Announces Housing Initiative
On Monday, November 17, Governor Doyle announced a new initiative aimed at increasing homeownership possibilities for Wisconsin families working in low and moderate level income brackets. The initiative, being called "Strengthening Neighborhoods Through Homeownership," authorizes the Wisconsin Housing and Economic Development Authority (WHEDA) to implement the following new housing programs immediately:

• Provide mortgage assistance, statewide, for teachers, police, and other civil servants;

• Provide mortgage protection insurance; and

• Offer consumers an educational program aimed at helping target populations prepare for, and increase knowledge as to homeownership.

Assembly Committee Approves of Smart Growth Changes
On Wednesday, November 19, the Assembly Committee on Property Rights and Land Management voted unanimously in favor of passage of AB 608, which makes changes to the comprehensive planning statute known as ‘Smart Growth.’ Under current Smart Growth law, all comprehensive plans (created or amended by local government units in order maintain or develop the locality according to zoning and land use requirements) are required to contain certain planning elements, including: housing, transportation, utilities and community facilities, and economic development.

Bill Would Create Committee for Court Judgments on Behalf of State
On Wednesday, November 19, the Assembly Committee on Government Operations and Spending Limitations voted unanimously in favor of passage of SB 17, which would create a Joint Committee on Court Judgments and Settlements made on behalf of the state.

Assembly Committee to Hear Broadband Bill
On Tuesday, November 25 (9:30 a.m., room 328-NW), the Assembly Committee on Energy and Utilities will hold a public hearing on AB 672, relating to exempting broadband Internet service from regulation by the Public Service Commission and local governments, requiring telecommunications utilities to provide unbundled network elements, and price regulation of telecommunications utilities.

Additionally, the Committee will hear AB 515, relating to retained earnings of telecommunications cooperatives; and AB 567, relating to utility aid payments to a municipality that is contiguous to a site on which an electric generating facility is located. The Committee will take executive action on SB 8, relating to withholding certain security information from public inspection.

Wisconsin Politics

Governor Appoints Director of Credit Unions
On Wednesday, November 19, Governor Doyle announced he had appointed Suzanne Cowan to be the new Director of the Office of Credit Unions.

Coggs Wins Senate Seat
On Tuesday, November 18, Rep. Spencer Coggs rolled to victory with 97 percent of the vote in the general election for the 6^th Senate District, previously held by Senator Gary George. Coggs earlier defeated George in the primary and had no opponent in the general election. Coggs will be sworn in to the Senate and take his new seat on Tuesday, November 25. It is expected that Governor Doyle will soon call a special election to fill Coggs’ newly-vacant 17^th District Assembly seat.

George Charged
On Wednesday, November 19, State Senator Gary George was federally indicted on two charges of conspiracy. The first count charges George with attempting to defraud the State of Wisconsin while in public office and the second count charges him with obtaining kickbacks from legal fees paid on his behalf.

Additionally, George’s attorney, Mark E. Sostarich was charged the same day for allegedly conspiring with George on the second count, above. Sostarich immediately filed a guilty plea on the charge.

On the day following the above events, Governor Doyle sent a letter to State Attorney General Peg Lautenschlager ordering a state investigation into the charges.

Wisconsin to Form Coalition Chapter to Combat Child Obesity
Wisconsin is working to develop a state chapter of the national Coalition for a Healthy and Active America (CHAA). CHAA is a nonprofit advocacy group that was formed in 2003 by concerned organizations and national leaders to educate parents, children, schools, and communities about the critical roles physical activity and nutrition education play in reversing the alarming trends of childhood obesity. For more information on CHAA, please visit its website.

Federal Developments

Energy Bill Passes House, Remains in Limbo in Senate
On Tuesday, November 18, the House of Representatives passed H.R. 6, the first major bill addressing energy policy in nearly a decade. On November 20^th, however, it was reported that Senate proponents of the Energy Bill were still shy of votes needed to end a filibuster aimed at blocking a scheduled November 21 Senate vote on the bill. Although the bill is foremost a Republican-sponsored initiative, there are now Republicans and Democrats on both sides of the filibuster. If the filibuster is successful in blocking Senate approval of the bill, the future of the bill will become highly uncertain, as any new amendments must be approved by the House.

Legislators Reach Agreement on Medicare Bill
It was reported this week that the House and Senate had reached agreement in negotiations on a major initiative to overhaul the Medicare prescription drug program. The bill, H.R. 1, otherwise known as the Medicare Prescription Drug and Modernization Act of 2003, has been tentatively scheduled for a House vote today, November 21.

Negotiations reportedly resulted in additional funding for the outpatient drug coverage provision of the bill. Opponents of the bill remain worried, however, that the funding of this provision will be inadequate for the millions of elderly individuals depending on drug benefits. If a House vote is held today, it is expected that the Senate will begin consideration of the bill as early as Saturday, November 22, with an effort to pass the legislation before Thanksgiving.

Political News

State budget crisis may be cooling off: Appleton Post-Crescent, Nov. 21, 2003.

Doyle orders state investigation of George dealings: Milwaukee Journal Sentinel, Nov. 21, 2003. .

State agency made private deal with firm: Milwaukee Journal Sentinel, Nov. 21, 2003.

Local-government summit planned: St. Paul Pioneer Press, Nov. 21, 2003.

Some undecided on Medicare bill, drug plan: Milwaukee Journal Sentinel, Nov. 21, 2003.

Drug bill worth approving (opinion): Milwaukee Journal Sentinel, Nov. 21, 2003.

Insurance co-op bill has merit (opinion): Oshkosh Northwestern, Nov. 21, 2003.

State jobless rate takes slight dip: Wisconsin State Journal, Nov. 20, 2003.

Legislature targets Doyle’s gun veto: Appleton Post-Crescent, Nov. 19, 2003.

Seat-belt law gets support in study: St. Paul Pioneer Press, Nov. 19, 2003.

State reps can’t stop energy bill: Green Bay Press-Gazette, Nov. 19, 2003.

Two lawsuits filed over Wisconsin Energy's plans: Janesville Gazette, Nov. 18, 2003.

Doyle vetoes concealed weapons bill: Milwaukee Journal Sentinel, Nov. 18, 2003.

Doyle proposes new housing programs: Janesville Gazette, Nov. 18, 2003.

s GOP plan a Job Creation or Job Destruction Act? (opinion): Madison Capital Times, Nov. 18, 2003.

Coalition, legislators work to solve business issues: Green Bay Press-Gazette, Nov. 18, 2003.

State ranks 21st in high-tech employment: Wisconsin State Journal, Nov. 18, 2003.

14 states ask courts to block EPA rule change: St. Paul Pioneer Press, Nov. 18, 2003.

Lawmaker wants you to buckle: Appleton Post-Crescent, Nov. 18, 2003.

Upcoming Fundraisers

Monday, December 1, 2003:

• St. Rep. Steve Freese (R-Dodgeville), 5:30 p.m., Barneveld, Wis.

Tuesday, December 2, 2003:

• St. Assembly Democratic Campaign, 5:00 p.m., Milwaukee, Wis.

• St. Sen. Ted Kanavas (R-Brookfield), 8:00 a.m., Wisconsin Dells, Wis.

Wednesday, December 3, 2003:

• St. Sen. Ted Kanavas (R-Brookfield), 5:00 p.m., Madison, Wis.

Thursday, December 4, 2003:

• St. Sen. Ted Kanavas (R-Brookfield), 5:30 p.m., Milwaukee, Wis.