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:

• Creation of the Cooperative Healthcare Purchasing Alliance;

• Benefit flexibility;

• Self-insurance; and

• Medical savings accounts.

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.)

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.

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.)

Friday, October 24, 2003:

• U.S. Presidential Candidate John Kerry (D), 4:30 p.m., Madison, Wis.

Saturday, October 25, 2003:

• St. Sen. Dale Schultz (R-Richland Center), 5:00 p.m., Sparta, Wis.

Monday, October 27, 2003:

• St. Rep. Becky Weber (R-Green Bay), 5:30 p.m., Green Bay, Wis.

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:

• Reception for Tom Barrett, 5:00 p.m., Milwaukee, Wis.

Friday, October 31, 2003:

• Halloween Bash with Sen. Ted Kanavas (R-Brookfield), 7:00 p.m., Brookfield, Wis.

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For Further Information

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.