Civil Trial Counsel of Wisconsin



	Political Tidbits	Compiled by The Hamilton Consulting Group 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 13letter 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.

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

St. Sen. Ron Brown (R-Eau Claire), 5:30 p.m., Madison, Wis.

Wednesday, Nov. 19, 2003

St. Attorney General Peg Lautenschlager’s Birthday, 5:00 p.m., Milwaukee, Wis.

Thursday, Nov. 20, 2003

St. Sen. Tom Reynolds (R-West Allis), 5:30 p.m., West Allis, Wis.

CTCW Political Tidbits is a weekly newsletter on Wisconsin political and policy developments prepared for CTCW members by The Hamilton Consulting Group. Employees of CTCW member organizations can subscribe at: http://www.ctcw.org/form-subscribe-tidbits.html.
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For Further Information

For further information on these initiatives, contact Jim Hough at The Hamilton Consulting Group.

In the 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.