Governor Signs Medicaid Bill
On May 25, Gov. Doyle signed SB 567 as Act 318, a measure that is expected to net the state approximately $70 million in federal Medical Assistance funds. The bill, which had passed both houses of the Legislature unanimously in the recent Extraordinary Session, will mean about $53 million added to state coffers, with the remainder going to counties.

Bill Requiring Approval of Gaming Compacts Vetoed
As expected, Gov. Doyle vetoed AB 998 which would have required an up or down “approval” vote by the Legislature on all gaming compacts. This is the third proposal relating to such approval that the governor has vetoed this session.

The most recent version was passed on the heels of a Wisconsin Supreme Court decision that held that the governor had exceeded his authority in compacts negotiated last year. (Please see May 24, 2004 edition of Tidbits for additional information. 

Doyle Vetoes Health Savings Account Bill
SB 568, recently passed by the Legislature, would have mirrored federal law by creating state individual income tax deductions for contributions to health savings accounts and earnings on those contributions. The measure was, however, vetoed by the governor on May 27. 

Legislative Council Studies
[The Wisconsin Joint Legislative Council is a body of 22 Legislators composed of the leadership of the Senate and Assembly, plus 10 members selected from the membership of both Houses. The council’s primary responsibility is to establish study committees to examine major issues and problems identified by the Legislature.

The study committees appointed by the Council are made up of Legislators and citizens who are interested in or knowledgeable about the study topic. The committees are often referred to as “interim” study committees because most of their work is done while the Legislature is in recess. Upon conclusion of the study committees’ work, the Council reviews legislation recommended by the committees and, if a majority (12) votes for “introduction,” the bill is sponsored by the Legislative Council rather than individual legislators.] 

The following special committees (with Chairs) have been approved by vote of the Council:

• Adoption and Termination of Parental Rights Law (Rep. Suzanne Jeskewitz)

• Child Guardianship and Custody (Sen. Alan Lasee)

• Election Law Review (Sen. Joseph Leibham)

• Municipal Annexation (Sen. Alan Lasee)

• Recodification of Ch. 45, Veterans (Rep. John Townsend)

• Sexually Violent Person Commitments (Sen. Alberta Darling)

• State-Tribal Relations (Rep. Terry Musser)

• Wisconsin’ Transportation Network Infrastructure (Sen. Ted Kanavas)

(For additional information on these committees: www.legis.state.wi.us/lc/2004studies.htm ) 

Three additional committees and Chairs have been recommended to the full Council:

• Recodification of Ch. 938, Juvenile Justice Code (Rep. Scott Suder)

• Septage Disposal (Rep. John Ainsworth)

• Tax Exemptions for Residential Property (Rep. Jeff Fitzgerald)

Assembly Republicans Caucus June 9
Majority Republicans in both Houses continue to examine options regarding a possible constitutional amendment to control government spending and/or statutory changes that range from a “tax freeze” to an improved and tighter accounting system for state income and spending.

Assembly Republicans scheduled a caucus for 2:00 on June 9 to further explore options. Speculation is strong that there is mounting pressure to reach a resolution before the end of June, but no clear consensus is evident at this writing. 

DOR Action Draws Criticism
Recent audit activity by the Department of Revenue (DOR) on Wisconsin firms, particularly banks, which operate out of state subsidiaries, has drawn criticism from business, banking and economic development associations.

The primary criticism is that the DOR is using the audit process to achieve “combined reporting,” a tax policy that is viewed as anti-economic development by the above mentioned organizations. The Legislature has, for more than 20 years, addressed and defeated numerous bills that would have established combined corporate tax reporting in Wisconsin.

Other criticisms focus on the potential for increasing the cost of money for Wisconsin businesses, big and small, and perhaps drying up sources of “venture capital” at a time when the state is attempting to encourage investment in seed and early stage companies. The DOR’s retort is that it is enforcing the current tax law in instances where firms have reallocated income inappropriately.

The Department denies that it is attempting to make new law via the audit process. This is a big issue that is not likely to quietly fade away. 

Legislative Offices Close in Honor of President Reagan
Speaker John Gard declared all Assembly offices closed on Friday to honor former President Ronald Reagan. The Senate authorized each Senator to close his or her own office and all expected to do so.

For further information on legislative activity of interest to CTCW members, go to CTCW Legislative Tracking Report.

Three More Assembly Incumbents Not Seeking Re-Election
Since our last report, three more State Representatives announced that they will not be running for re-election to their Assembly seats. Rep. Johnnie Morris (D-Milwaukee) is leaving the Assembly to run in the 4^th Senate District, which is being vacated by Senator Gwen Moore who is running for Congress.

Rep. Dan Schoof (D-Beloit) and Rep. Lorraine Seratti (R-Florence) both announced their retirements from the State Assembly. Neither is seeking other elected offices at this time. To date, six Republican and seven Democrat incumbents have announced that they will not be seeking re-election to the Assembly for the 2005-06 session.

Class Action Legislation on Senate Calendar
S.2062, the “Class Action Fairness Act of 2004,” has passed two major hurdles in the last six months and should be acted on by the U.S. Senate in the very near future. A bi-partisan compromise was reached just before the New Year and the cloture motion which was scheduled for vote on June 1 was withdrawn by unanimous consent, placing the bill on the calendar for full Senate action.

Under the bill, a national class action lawsuit would move to federal court if the case exceeds $5 million and includes parties from multiple states. In addition, the bill includes:

• The principle of “plain English” in class action settlements.

• Notice to State Attorneys General of any proposed settlement of affected states.

• Heightened judicial scrutiny of settlements, including strengthening the coupon (to class members) settlement provisions. The bill prohibits a federal district court from approving a proposed coupon settlement: absent a finding that the settlement is fair, reasonable and adequate; a proposed settlement involving payments to class counsel that would result in a monetary loss to class members unless the loss is substantially outweighed by nonmonetary benefits; or, a proposed settlement provides greater sums to some class members solely because they are closer geographically to the court.

• The calculation of contingent and other attorney fees in proposed class action settlements that provide for the award of coupons to class members.

• Listing of those factors pursuant to which a district court may decline to exercise jurisdiction over a class action, and specifies those circumstances in which a district court must decline jurisdiction.

• Provisions governing the removal of interstate class actions to federal district court.

• Direction for the Judicial Conference of the United States to report on class action settlements, incorporating recommendations for best court practices to ensure fairness for class members and appropriate fees for counsel. 

Those interested in this legislation should contact Senators Kohl and Feingold.

June 10

• Rep. Tom Hebl (D-Sun Prairie), Sun Prairie

• Committee to Elect a Republican Senate, Chicago.

June 13

• U.S. Rep. Tom Petri (R), Ripon

June 14

• Sen. Julie Lassa (D-Plover), Stevens Point

• Bob Welch (R) US Senate Candidate, Marshfield

June 15

• Sen. Dale Schultz (R) 3rd CD Candidate, La Crosse

• Rep. Jon Richards (D-Milwaukee), Milwaukee

• Rep. Debi Towns (R-Janesville), Milton

• Committee to Elect a Republican Senate, Madison

June 16

• Sen. Dale Schultz (R) 3rd CD Candidate, La Crosse

• Rep. Jon Richards (D-Milwaukee), Milwaukee

• Rep. Debi Towns (R-Janesville), Milton

• Committee to Elect a Republican Senate, Madison

• Sen. Dale Schultz (R) 3rd CD candidate, Sparta

• US Senate Candidate Bob Welch (R), Antigo

June 17

• Sen. Roger Breske (D-Eland), Milwaukee

• Sen. Dale Schultz (R-Richland Center), Galesville

• Bob Welch (R) US Senate Candidate, Stevens Point

• Sen. Dave Hansen (D-Green Bay), Green Bay

• Majority GOP Conduit,Milwaukee

• Tom Tiffany (R) 12th Senate Dist. Candidate, McNaughton

June 18

• Sen. Dale Schultz (R-Richland Center)

June 19

• Bob Welch (R) U.S. Senate Candidate, Reedsburg

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For Further Information

State employees are agreeing to pay part of health care cost: Wisconsin State Journal, June 7, 2004.

Prisoners' health costs rise 500%: Milwaukee Journal Sentinel, June 7, 2004.

State officials seek to draw biotech firms: Appleton Post-Crescent, June 7, 2004.

Educators, aging groups speak against TABOR: Green Bay News-Chronicle, June 7, 2004.

Making drugs affordable (opinion): Milwaukee Journal Sentinel, June 6, 2004.

Taxpayer Bill of Rights prompts statewide forum: Marshfield News Herald, June 6, 2004.

Ziegelbauer to seek seventh Assembly term: Manitowoc Herald Times, June 5. 2004.

Tax-limiting amendment might be on hold until January: Milwaukee Journal Sentinel, June 5, 2004.

Small bankers cry foul: Madison Capital Times, June 4, 2004. Fear state crackdown unfair.

State spending habits show basic budget problem (opinion): Oshkosh Northwestern, June 2, 2004.

Wisconsin trade with China on the grow: Appleton Post-Crescent, June 2, 2004.

State thwarts energy tariffs: Green Bay Press-Gazette, June 2, 2004.

PSC to host energy needs meeting: Stevens Point Journal, June 2, 2004.

Power line debate is moving south: Milwaukee Journal Sentinel, June 1, 2004.

'Drugged driver' law facing court challenges: Milwaukee Journal Sentinel, May 31, 2004.

When SUVs, pickups hit cars, legal dent may be big: Milwaukee Journal Sentinel, May 31, 2004.

TIFs in some strange places (opinion): Milwaukee Journal Sentinel, May 31, 2004.

Are more local jobs going overseas? La Crosse Tribune, May 30, 2004.

Anti-ozone campaign urges summer of air quality: Oshkosh Northwestern, May 30, 2004.