Legislature Receives Budget Briefing
On June 4 the Joint Finance Committee completed its work on the State Budget (SB 44). For a summary of the Committee’s actions, go to The Hamilton Consulting Group web site.

Both houses received a briefing on the budget from the Legislative Fiscal Bureau, on Thursday, June 12, at 2p.m. in the Assembly Chambers. A copy of the Legislative Fiscal Bureau’s Comparative Summary of Budget Recommendations is now available on the internet.

The Senate plans to take the bill up on the floor next week, but Senate Majority Leader Panzer indicated that Wednesday would be the earliest the Senate would take action. Assembly Republicans indicated they will not be making substantive changes to the JFC version of the budget and are expected to take the bill up shortly following Senate action. Each house is expected to act on other legislation while the other is debating the budget.

Hearing on Cory Nettles Appointment
The Senate Economic Development Committee is holding a hearing today, Friday, on the appointment of Cory Nettles as Secretary of Commerce. Nettles’ confirmation is expected to be voted on by the full Senate next week.

Today, the Wisconsin Economic Development Association (WEDA) announced its support of Nettles’ confirmation.

Incentives to Promote Power Plant Siting Pass Utility Committees in Both Houses
On Tuesday, June 10, the Assembly Energy and Utilities Committee recommended passage of AB 378. The bill creates new incentive aid payments for municipalities and counties that host power plants. The companion to this bill, SB 180, was voted out of the Senate Utility Committee last week, and referred to Joint Finance. The Joint Finance Committee will hold an executive session on SB 180 next Tuesday, June 17, at 1pm.

See The Hamilton Consulting Group’s Special Update regarding this legislation.

WMC Announces Outlook for Growth in 2003
On June 11, WMC announced the results of its 2003 Economic Outlook Survey. The survey reports Wisconsin industry executive’s prediction that Wisconsin’s economy will remain flat over the next year, despite optimism for the National economy. WMC’s announcement did state, however, that Wisconsin’s poor climate could improve if key economic development legislation passes in the next few months. Such legislation would include environmental regulatory reform, and Wisconsin tax law reform.

Hearing on ‘Single Sales Factor’ Bill
On Thursday, June 12, Sen. Stepp introduced the ‘single sales factor’ bill, SB 197. The Senate Economic Development Committee is holding a hearing later today to address the bill. Under current law, the income tax of a Wisconsin business is computed by a formula including three factors: a sales factor (50%), a property factor (25%), and a payroll factor (25%). Under the bill, property and payroll factors would be phased out over four years and the sales factor would be increased eventually to 100 percent beginning in tax year 2008.

The bill is expected to be voted out of committee today and taken up by the Joint Finance Committee on Tuesday.

On June 5, WMC highlighted ways in which Wisconsin businesses anticipate this bill will improve economic development in the State.

Hearing on Bill Deleting Gas Tax Indexing
The Assembly Committee on Ways and Means held a hearing on June 11, on AB 242. No executive action was taken. Under the bill, current law requiring the rate of motor vehicle fuel tax to be annually adjusted would be deleted. The bill’s author, Rep. Black, testified that repealing indexing would improve legislator accountability for future gas tax charges.

Opponents argue, however, that there would be pressure to increase the gas tax higher than the normal fractional amount dictated by indexing. Also, theoretically, indexing could require a reduction in the gas tax. While the bill had a public hearing, it is not expected to get out of Committee.

Technology Zone Tax Credit Gets Hearing
The Assembly Committee on Ways and Means met June 11 for a public hearing on AB 299. The bill adjusts current technology zone tax credit law to allow “pass throughs” for income reporting so that a partner of a partnership, a member of a limited liability company, or a shareholder of a tax-option corporation may claim a tax credit, based on a tax liability number for the previous taxable year calculated as if the entity had been a corporation. The Committee announced its intention to act on this bill by mid-August, after addressing some technical concerns raised by the Dept. of Revenue.

Public Hearing on Precluding Damage Suits for Injured Felons
On June 12, the Assembly Judiciary Committee held a hearing on AB 107, and its companion bill, SB 38 (passed by the Senate, 31-2, on June 4). The bills would eliminate civil damages recovery for persons injured while committing a felony. Testimony focused on some concerns that the language was overbroad. These concerns did not, however, quash general committee sentiments supporting the aim of the bill, and an amendment “narrowing the scope” will be developed.

State Supreme Court Takes Back Gaming Compact Lawsuit
On Thursday, June 13, the Supreme Court of Wisconsin reinstated Panzer v. Doyle, the GOP lawsuit concerning recently renegotiated tribal gaming compacts. See a copy of the order reinstating the case, after being sent back to the State from Federal Court.

Lautenschlager Asks Feds to Delay Approval for WE Energies
Attorney General Peg Lautenschlager announced June 12 that she had asked the federal government to delay seeking court approval of its proposed settlement in the WE Energies case until the public has time to hear more about the deal. See a copy of Lautenschlager’s letter to the Feds.

U.S. Senate To Hear Class Action Fairness Act of 2003
Both houses took action this week on two bills that would significantly reform class action lawsuits. On Thursday, June 13, the House passed HR 1115, by a vote of 253-170. The Senate Class Action bill, SB 274, was recommended for passage by a Senate Judiciary vote of 12-7, on June 11. SB 274 establishes a consumer class action bill of rights, including provision for: (1) judicial review and approval of noncash settlements; (2) protection against loss by class members because of payments to class counsel; (3) a prohibition against court approval of a proposed settlement providing for greater payments to class members because they are located in closer geographic proximity to the court; (4) a prohibition against court approval of a proposed settlement providing for payment of a greater share of the award to a class representative serving on behalf of a class; (5) standardized settlement notification information; and (6) specific requirements regarding proposed settlement notifications to Federal and State officials.

Additionally, the bill grants district courts original jurisdiction of any civil action in which the matter in controversy exceeds $2 million, exclusive of interest and costs, and is a class action in which any member of a class of plaintiffs is: (1) a citizen of a State different from any defendant; (2) a foreign state or a citizen or subject of a foreign state and any defendant is a citizen of a State; or (3) a citizen of a State and any defendant is a foreign state or a citizen or subject of a foreign state. The bill lists exceptions, such as where a class action brought by shareholders solely involves a claim concerning a covered security or relating to the internal governance of a corporation; sets forth procedures for removal of interstate class actions to U.S. district court and for review of orders remanding class actions to State courts; and directs the Judicial Conference of the United States to report to the Senate and House Judiciary Committees on class action settlements.

On June 9, WMC announced its support of Senate Bill 274. The bill is also supported by the Wisconsin Coalition for Civil Justice.

Senate Finance Committee Proposes Medicare Drug Benefit
Senate Finance Chairman Grassley (R-IA) and ranking member Max Baucus, (D-MT), released their proposal to create a Medicare drug benefit under a "Medicare Part D" that would begin in 2006. It calls for a $275 annual premium, after which the government would finance half of all drug costs up to a yet to be determined sum. The bill also creates new "preferred provider organizations" with the hope of holding down Medicare spending over the long term. Additionally, the plan increases, to 160 percent of the current poverty level, the low-income threshold for the population that would get additional help with their drug costs. States will be expected to continue to provide prescription drug coverage to the 6 million people "dually eligible" for both Medicare and Medicaid, with the federal government taking responsibility for low-income seniors above Medicaid eligibility levels.

Rural Legislators Push For Gap Relief, Increased Service
Members of the House Rural Health Care Caucus seek relief for rural hospitals and other rural healthcare providers – without it, the House risks losing their votes for the health care package. The changes the caucus wants closely track the 10-year, $25 billion package included by Senate Finance Chairman Grassley in the recent tax bill. The Caucus’ proposal includes permanent changes intended to narrow the gap in hospital payments between rural, urban and suburban areas, as well as provisions for more money for rural physicians, home health agencies, and ambulance services.

Senate Judiciary Plans Markup for Asbestos Litigation
On Thursday, Senate Chairman Hatch said this he plans to go ahead with the scheduled markup of the asbestos litigation reform bill, even if certain changes are not addressed, in an effort to push this legislation through. For a summary of some of the changes suggested, in order to get more Democrats on board, see last week’s Tidbits, detailing transcripts of the Senate Judiciary Committee’s June 4 hearing on the asbestos bill.

Sunday, June 15:

• State Rep. J.A. “Doc” Hines (R-42), Oxford, WI, 3:00p.m.

Saturday, June 21:

• State Rep. Debi Towns (R-43), Janesville, 5:30p.m.

Current Edition

For Further Information

Republicans vow budget fight: Wisconsin State Journal, June 13, 2003.

GOP budget plan creates $1.1 billion deficit, review finds: Milwaukee Journal Sentinel, June 13, 2003.

Analysis compares budget plans of Doyle, Republican: Janesville Gazette, June 13, 2003.

John Gard's tax hikes (opinion): Madison Capital Times, June 13, 2003.

Provision cuts costs for PCB disposal: Green Bay Press-Gazette, June 13, 2003.

Grants key for plans to become product: Milwaukee Journal Sentinel, June 13, 2003.

Forestry tax exempted from tax cap: Wisconsin State Journal, June 12, 2003.

Insurance rulings get overturned: Appleton Post-Crescent, June 12, 2003.

New ozone standards under fire: Green Bay Press-Gazette, June 12, 2003.

Car seats get ease-of-use ratings: Wisconsin State Journal, June 12, 2003.

Road construction spared pain we should share (opinion): Appleton Post-Crescent, June 12, 2003.

Doyle may reject whole GOP budget: Madison Capital Times, June 11, 2003. 

Most firms see moderate economic growth: Milwaukee Journal Sentinel, June 11, 2003.

Natural gas plants could burn money: Wisconsin State Journal, June 11, 2003.

Assembly plan would ease state law for energy group: Green Bay Press-Gazette, June 11, 2003.

Mercury a mystery: Racine Journal Times, June 11, 2003.

The DNR under the gun (opinion): Milwaukee Journal Sentinel, June 11, 2003.

The uninsured driver: Racine Journal Times, June 11, 2003.

DNR aims to cut mercury waste: Green Bay Press-Gazette, June 10, 2003.

1 million jobs lost: Madison Capital Times, June 9, 2003. 

4th summit set to consider economy: Milwaukee Journal Sentinel, June 9, 2003.

Businesses may suffer under ozone designation: Janesville Gazette, June 9, 2003.

Bed tax worries private-pay clients: Green Bay Press-Gazette, June 9, 2003.

State must encourage entrepreneurs if it intends to flourish: Milwaukee Journal Sentinel, June 8, 2003.

Traffic deaths on par to pass 2002 toll: Oshkosh Northwestern, June 8, 2003.