Senate Property Tax Freeze Override Attempt Fails, Narrowly
On Tuesday, August 12, the Senate voted on whether or not to override Governor Doyle’s veto of the Republican drafted three-year property tax freeze provision in the state budget. By a vote of 21-12, the override effort failed by one vote. (22 votes were needed for the two-thirds majority vote needed to override the veto.) Senate Republicans all voted to override the veto along with three Democrats: Sens. Tim Carpenter (D-Milwaukee), Gary George (D-Milwaukee) and Dave Hansen (D-Green Bay).

Property Taxes: Alternative Democrat Proposal for Relief
Republicans were counting on Sen. Plale (D-S. Milwaukee) to join them in voting against the property tax veto, as the fourth Democrat needed from the Senate side in the effort to force the plan to become law over the Governor’s objection. This hope was quashed, however, August 11, when Sen. Plale announced he would vote to sustain the veto, and would introduce a Democrat property tax relief plan. The plan, which is reportedly backed by Gov. Doyle, would reduce property tax increases to under two percent over the next two years by increasing relief to taxpayers through the property tax rent credit and the homestead credit. (Under the budget provision, property taxes were estimated to increase by one percent.) The property tax rent credit and the homestead credit do not directly affect the property tax since they are credits against the income tax and only apply to targeted populations. The Democrat proposal was estimated to cost the state approximately $400 million.

Assembly Passed a Revised Freeze Plan
In another move to keep the “property tax freeze” alive, Assembly GOP members began an effort to pass alternative, separate legislation. When it became evident from the debate last Tuesday that the vote to override the Governor’s veto would fail, Assembly Republicans introduced and passed AB 466, sponsored by newly elected Rep. Mark Honadel (R-Milwaukee). By a vote of 62-31, the Assembly passed the alternative property tax relief plan merely five hours after the Senate’s override vote failed. The Assembly plan resembles the budget “freeze” by limiting property tax increases over three years. The bill does, however, exempt changes (value increment) in a Tax Increment District (TID) and provides that the calculation of the levy does not include tax increment generated by a TID. Assembly Bill 466 also exempts debt service on bonds for resolutions adopted prior to July 1, 2003 or authorized by a referendum adopted after July 1, 2003.

George Recall Delayed Again
On Monday, August 11, State Senator Gary George (D-Milwaukee) invoked a legislative privilege resulting in a further delay of the lawsuit he filed against the State Ethics Board last month. A hearing scheduled for August 11 was delayed until Monday, August 18, after Dane County Circuit Judge Maryann Sumi granted George’s request to invoke the privilege in order to attend the Senate’s special session this week to vote on Governor Doyle’s property tax budget veto.

George’s lawsuit challenges the Election Board’s decision finding recall proponents had collected enough signatures to grant a recall election. The recall has already been stayed once, pending the outcome of the lawsuit which is expected shortly following next week’s hearing.

DNR Mercury Rule Undergoes Legislative Scrutiny
 On August 13 the Senate Committee on Environment and Natural Resources and Assembly Committee on Natural Resources held a joint hearing on DNR’s controversial mercury emission rule. The all-day hearing included testimony from numerous utility, business and environmental organizations.

The final DNR proposal, developed over the past several years, targets mercury emissions from “major utilities.” Four Wisconsin utilities trip the 100 lbs/year mercury emission threshold – Dairyland Power, WE Energies, Wisconsin Public Service Corp., and Alliant Energy. Under the rule, these utilities would have to meet reduction mandates of 40 percent by 2010 and 80 percent by 2015. The final rule and related documents can be found on the DNR web site.

Industry comments focused on two requested changes. They asked the committees to request DNR modify the rule to provide an exemption for sources subject to federal mercury emission limitations. In addition, they requested that the second, 80 percent reduction mandate be dropped and replaced with an evaluation after the first phase on whether further reductions are warranted. (See Wisconsin Utility Association and Wisconsin Manufacturers & Commerce positions.)

First Hearing for Senate Job Creation Committee
On Tuesday, August 5, the Senate Select Committee on Job Creation held its first public hearing. The Committee is currently comprised of three Republican members: Co-chairs Sens. Ted Kanavas (Brookfield) and Cathy Stepp (Yorkville), and member Sen. Joe Leibham (Sheboygan), and two Democrat members: Sen. Robert Jauch (Poplar) and Sen. Charles Chvala (Madison). Following the hearing, the Committee issued a joint announcement regarding the hearing’s three hours of testimony that repeatedly expressed the need to streamline Wisconsin’s regulatory climate as it relates to the creation of jobs in Wisconsin.

The Committee’s approach to economic development is three-pronged, focusing on: 1) regulatory reform; 2) capital/investment; and 3) infrastructure. In a recent interview with the Wisconsin Technology Network, Sen. Kanavas spoke about how his background in the software industry has helped him develop ideas on how to grow the state’s economy.

Governor Signs “Pay to Play” Bill
On August 11, Governor Doyle signed AB 1, the campaign finance bill known as “pay to play.” (See the Governor’s release for more information on all bills signed on August 11.)

AB 1, authored by Rep. Gundrum (R-New Berlin), strengthens the prohibition of so-called “pay to play” conduct in state government. The bill makes illegal a direct exchange of official legislative actions for campaign contributions. (See Rep. Gundrum’s release on the bill signing.)

Governor Vetoes Controversial Voter ID Bill
On Tuesday, August 5, Governor Doyle vetoed AB 111, relating to voter identification. The bill attempted to make the production of a valid, state-issued identification document a requirement for voting in Wisconsin state and local elections.

Proponents of the bill argued that identification is required for almost all customary business transactions, and therefore the integrity of the important function of voting should require no less. Opponents argued, however, that the requirement would increase the administrative burden of the Department of Transportation (the state agency that issues driver’s licenses and personal identification cards), poll workers and municipal clerks. Additionally, argued opponents, the requirement would be particularly cumbersome for elderly, disabled, and minority citizens. On August 4, Governor Doyle announced he was vetoing the bill because it was too restrictive and it would impose an additional tax burden on Wisconsin residents.

See related news stories: Doyle says no to photo ID (opinion), and Photo ID reasonable requirement for voting (opinion), and Some type of voter ID necessary (opinion).

Legislators Want Focus on Road Safety
On August 13, two state legislators, Reps. Jerry Petrowski (R-Marathon) and Garey Blies (R-Sister Bay) released a request for creation of a Safer Roads Task Force. The lawmakers focused on the Wisconsin Department of Transportation’s (DOT) August 8, 2003 announcement stating Wisconsin has already seen more than 500 deaths on the road this year, and projecting the state would suffer 900 more fatalities before the year end. The representatives’ vision for a task force would include bringing together road safety experts with policy makers to strengthen the state’s means for reducing crashes and road deaths.

Draft Text Published for Implementing 8-Hour Ozone
On July 31, 2003, the EPA published draft text for its proposed regulatory text for implementing the new 8-hour ozone National Ambient Air Quality Standard (NAAQS) under authority of the Clean Air Act. The draft proposed regulatory text accompanies the June 2, 2003 Proposed Rule to Implement the 8-Hour NAAQS. Key issues addressed include:

• Classification of areas;

• Incentive features;

• Attainment deadlines;

• Transition from the 1-hour NAAQS; and

• Reasonable further progress, among other issues.

Comments on the June 2, 2003 Proposed Rule were due Aug. 1, 2003. (See Wisconsin Manufacturers and Commerce comments.) Comments on the draft regulatory text are due to EPA by Sept. 5, 2003.

Federal Banking Authorities Issue Proposed Rule
On August 12, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve, and the Federal Deposit Insurance Corporation announced joint issuance of a proposed rule to require banks to promptly notify customers when their sensitive financial information is stolen. In a statement issued following the August 12 FR publishing, Wisconsin Congressmen Gerald Kleczka (D) and Paul Ryan (D) announced they were pleased with the proposed rule that closely mimicked a concept contained in HR 818, a bill the two Representatives introduced less than a year ago that also relates to bank ID theft notification. HR 818 is currently pending in the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. If passed, it would impose additional requirements on banks, including taking additional steps to help affected consumers remedy any damage to their credit history and reimbursement for any losses incurred.

Group of Nearly 8000 Doctors Call for National Health Insurance
On Wednesday, August 13, a group of 7,782 U.S. physicians published a plan for a government sponsored national health insurance program in the Journal of the American Medical Association. The group argues that HMOs and private sector insurance plans have raised the costs of medical care too high, and they need to be brought back down and standardized. The American Medical Association (AMA), however, is not on board with the plan. In its official statement following the Journal report, the AMA cautioned that moving to a single-payer health system would only accomplish trading current problems (high costs) for new ones (longer waits for services).

Sunday, August 17, 2003:

• North Suburban Republican Club, Brown Deer, 1:00 p.m. 

Monday, August 18, 2003:

• St. Rep. Bonnie Ladwig (R-Racine), Racine, 5:00 p.m.
• St. Sen. Scott Fitzgerald (R-Juneau) & St. Rep. Jeff Fitzgerald (R-Beaver Dam), Beaver Dam, 5:30 p.m.

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State fueled controversial fund: Appleton Post-Crescent, Aug. 15, 2003.

Upgrades aside, state could be vulnerable: Milwaukee Journal Sentinel, Aug. 15, 2003.

Wisconsin better beef up power grid, industry says: Wisconsin State Journal, Aug. 15, 2003.

Nation's energy needs demand bolder action (opinion): Wisconsin State Journal, Aug. 15, 2003.

East Coast outages raise local concerns: Appleton Post-Crescent, Aug. 15, 2003.

Wisconsin power grid holds up, utilities say: Green Bay Press-Gazette, Aug. 15, 2003.

Green pushes for ban on Internet cigarette sales: Appleton Post-Crescent, Aug. 14, 2003.

Bill would change way prison deaths are investigated: Wisconsin State Journal, Aug. 14, 2003.

Tax freeze a political hot potato: Appleton Post-Crescent, Aug. 14, 2003.

Tax-freeze haggling disrupts budgets: Green Bay Press-Gazette, Aug. 14, 2003.

Veto override vote fails by a whisker: Wisconsin State Journal, Aug. 13, 2003. s.

Democrats feel the heat: Milwaukee Journal Sentinel, Aug. 13, 2003.

Assembly passes tax bill: Manitowoc Herald Times, Aug. 13, 2003. Senate fails to override Doyle’s veto.

Bank rules would reveal ID theft: Milwaukee Journal Sentinel, Aug. 13, 2003.

Privacy law hinders clergy's access to patients: Milwaukee Journal Sentinel, Aug. 12, 2003.

Doyle signs bill to protect state’s utilities: Green Bay Press-Gazette, Aug. 12, 2003.

Venture capital pool getting bigger: Milwaukee Journal Sentinel, Aug. 11, 2003.

Refinancing boom threatens to bust: Milwaukee Journal Sentinel, Aug. 10, 2003.

Life won't change for W-2 participants: Wisconsin Rapids Daily Tribune, Aug. 10, 2003.

State starts to recognize need to help (opinion): Appleton Post-Crescent, Aug. 10, 2003.

A call for common sense: Milwaukee Journal Sentinel, Aug. 10, 2003.

How the state budget affects lives and institutions: Wisconsin State Journal, Aug. 10, 2003.

Auto suppliers urged to focus on research: Milwaukee Journal Sentinel, Aug. 11, 2003.

Rise in sales, productivity spurs optimism: Wausau Daily Herald, Aug. 8, 2003.