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The United States Supreme Court, Governor Doyle and, most significantly, the Wisconsin Supreme Court, have all had a role in impacting the legislative agenda for the upcoming floor periods.
In June, in a 5-4 decision, the U.S. Supreme Court ruled that the condemnation power of local government can extend to private development, and not violate the “Takings Clause” of the U.S. Constitution, if development will provide appreciable benefits to the community. The Court did, however, specifically recognize that states are within their respective rights to pass additional laws restricting condemnation. This case has the potential for pitting property rights against economic development. In light of the Court’s decision, the Legislature will need to determine what, if any, restrictions may be needed in Wisconsin, balancing property rights and legitimate development which provide appreciable economic development benefits.
In signing the 2005-07 state budget, Governor Doyle made extensive use of the item veto power, which is among the most far-reaching in the country. Among his vetoes, the Governor redirected monies to the general fund and crafted language (through vetoes) that “authorized” him to direct the Department of Administration to spend the money (on schools) without specific legislative authorization. A proposed constitutional amendment limiting the veto authority of a Wisconsin governor is currently being circulated among Wisconsin legislators and will likely be debated in the upcoming legislative floorperiods. (See article below.)
The Wisconsin Supreme Court has handed down three cases this year (one in March and two in July) that reinterpreted the legislatively adopted standard for the award of punitive damages; ruled that caps on noneconomic damages in medical malpractice cases, also adopted by the legislature, are unconstitutional; and, expanded the “risk contribution” theory to allow the award of damages in product liability cases without the need to prove liability of the manufacturer. (See article below.)
All of the above, in different ways, present a challenge to legislative prerogative and raise potential separation of powers issues. The Wisconsin Supreme Court cases also have impacted Wisconsin’s “litigation atmosphere” creating a challenge for economic development and our state’s ability to remain attractive for business expansion and location. These are all challenges facing the Legislature when it meets this Fall and early next year.
| In this Issue |
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Legislative Activities
Voter ID Bill Sent to Doyle
Amendment on Veto Authority Receives Support
LFB Publishes Summary of Partial Vetoes
Civil Justice “Summit” Held on Supreme Court Rulings and Other Legislation
Speaker Gard Names Public Members of Medical-Malpractice Reform Task Force
HUD Brownfields Economic Development Initiative Grants Reopened
Legislation Would Modernize WHEDA Finance Programs
New WISTAX Study Compares Income Taxes Nationwide
Governor's Safety Conference
Sowa Seeking Democratic Nomination for Congress
Bush Signs Energy Bill
Work on Federal Transportation Bill Complete |
| Policy Developments |
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Legislative Activities
All bills passed by the Legislature, not yet acted upon, were sent to the Governor Aug. 11. The Governor then has six days, Sunday excluded, to take action or the bills become law without his signature.
Bills of interest that the Governor will sign on Monday, Aug. 15, include:
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AB-5. Removes certain limits on health benefit purchasing cooperatives.
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AB-24. Quorum requirements for a zoning board of appeals or adjustment.
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AB-259. Provider organizations subject to health care liability requirements.
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SB-2. Regional emergency response team requirements.
Other bills awaiting his consideration include:
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AB-107. Daily deadline for filing certain documents for recording by register of deeds.
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AB-277. General air pollution control permits. (Jobs Creation II).
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AB-441. Applications for certificates of public convenience and necessity for certain electric generating facilities.
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SB-39. School transportation bio-diesel fuel cost assistance.
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SB-55. Increases limits on designation of enterprise development zones.
Other recent action:
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AB-600 was introduced in the Assembly on Aug. 9. It would create a sales and use tax exemption for motor vehicles that use gasoline and ethanol mixtures as fuel.
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The Assembly Committee on Urban and Local Affairs recommended passage of AB-509, which would eliminate immunity from liability of cities, villages, towns and counties for damages caused by an insufficiency or want of repair of a highway.
Voter ID Bill Sent to Doyle
Gov. Doyle is expected to veto the the latest version of the voter photo ID bill (SB-42.) later today. It will be the third time in three years Doyle has vetoed the voter ID proposal.
State legislators had requested action on the voter ID bill following an investigation of possible voter fraud in the November 2004 election. The bill, which would have required certain identification to vote at a polling place or obtain an absentee ballot, passed the Senate on June 15 by a vote of 21 to 12, and passed the Assembly on June 21 by a vote of 63 to 34.
In addition to SB 42, Assembly Bill 542, introduced on July 7, proposes various changes in the laws concerning election administration. These changes would include setting up satellite polling places, limiting waiting times for voters to 30 minutes, providing voter registration applications when getting a driver’s license, circulating an electronic list of felons barred from voting, and training poll workers. AB 542 has been referred to the Assembly Committee on Campaigns and Elections.
Amendment on Veto Authority Receives Support
A proposal is currently being circulated on a constitutional amendment limiting the governor's veto authority. The amendment would prohibit creation of a new sentence by combining parts of two or more sentences in an enrolled bill.
Assistant Majority Leader Neal Kedzie (R-Elkhorn)Kedzie joined Majority Leader Dale Schultz (R-Richland Center) in announcing their support of the constitutional amendment being circulated by Senators Sheila Harsdorf (R-River Falls) and Scott Fitzgerald (R-Juneau) and State Representatives Jeff Stone (R-Greendale) and Don Friske (R-Merrill).
The proposal is identical to the 1991 Assembly Joint Resolution 78. Even with such limitations put on the partial veto authority, Wisconsin’s governor would still have the most expansive veto authority in the nation.
LFB Publishes Summary of Partial Vetoes
This week the Legislative Fiscal Bureau published its Summary of Partial Vetoes of 2005 Wisconsin Act 2005.
According to a comparison of the general fund condition statements under the enrolled budget bill passed by the Legislature, versus Act 25 as signed and vetoed by the Governor - Revenues are increased by $447 million under Act 25 compared to the enrolled bill, including a $26.8 million increase in tax collections over this biennium. Total GPR spending (total GPR appropriations) are $25.793 billion under Act 25 compared to $25.314 billion under the enrolled bill, or an increase of $479 million under Act 25.
Civil Justice “Summit” Held on Supreme Court Rulings and Other Legislation
About 60 representatives from business trade groups and independent companies recently attended a summit in Madison to address civil justice issues - including those raised as a result of the Wisconsin Supreme Court rulings on punitive damages, medical malpractice noneconomic damages caps, and manufacturer’s liability under a “risk contribution” theory. The group also was updated on pending legislation relating to expert opinion evidence, products liability, and shareholder liability.
The meeting, hosted by the Wisconsin Coalition for Civil Justice, focused on the potential impact the Court’s rulings may have on economic development as well as Wisconsin’s reputation as having had a better than average litigation climate. The meeting also addressed the potential for Wisconsin becoming a hot bed for plaintiff lawyers from throughout the country and reopening the door for lawsuit abuse. Significant attention was given to the suggestion that the Court was acting like a “super legislature,” substituting its policy judgment for that of the Wisconsin Legislature.
The recent decisions of the Wisconsin Supreme Court have drawn national attention. Calling the ruling “highly creative,” the Wall Street Journal in an August 9th editorial opined that the “implications for Wisconsin's economy, which depends both on health care and manufacturing, are enormous. The last thing Wisconsin needs is a reputation as a cold-weather Alabama.”
Speaker Gard Names Public Members of Medical-Malpractice Reform Task Force
Five public members will round out the Speaker’s Task Force on Medical-Malpractice Reform. Assembly Speaker John Gard (R-Peshtigo) created the task force after the recent Supreme Court decision which held that caps on non-economic damages are unconstitutional. Since 1995, Wisconsin law has capped excessive non-economic (pain and suffering) awards.
The public members joining the task force are:
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David Strifling, an attorney with Quarles and Brady.
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Mary Wolverton, an attorney specializing in health care in practice with Peterson, Johnson and Murray, SC of Milwaukee, and Past President of the Civil Trial Counsel of Wisconsin.
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Dr. Bud Chumbley, an obstetrician and President/CEO of Medical Associates Health Centers in Menominee Falls.
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David Olson, a hospital CEO, board member and founder of NorthReach.
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Ralph Topinka, vice president and general counsel of Mercy Alliance in Janesville.
HUD Brownfields Economic Development Initiative Grants Reopened
U.S. Department of Housing and Urban Development (HUD) has announced an extended deadline for brownfields grants applications. Due to difficulties in submitting applications this year under the HUD SuperNOFA, the Brownsfields Economic Development Initiative (BEDI) program competition has re-opened; the new deadline is August 25, 2005. Further information and applications for this program may be found on the HUD website.
The Brownfields Economic Development Initiative is a key competitive grant program that HUD administers to stimulate and promote economic and community development. BEDI is designed to assist cities with the redevelopment of abandoned, idled and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination.
Legislation Would Modernize WHEDA Finance Programs
Bipartisan legislation introduced in the Assembly and Senate would boost the economic impact of affordable housing and business finance programs offered by the Wisconsin Housing and Economic Development Authority (WHEDA) by as much as half a billion dollars annually.
WHEDA has estimated that the proposal, AB-593 and SB-269, could provide additional lending capacity generating as much as $483 million annually and help to create the equivalent of 3,755 full-time jobs in construction trades and other sectors of the state's economy.
For WHEDA's business and agricultural financing, the bill would, among other things, refinance debt where a business is expanding and creating new jobs; and, eliminate the current $750,000 loan amount cap and provide an unlimited loan amount for growing businesses.
New WISTAX Study Compares Income Taxes Nationwide
A recent study published by the Wisconsin Taxpayers Alliance (WISTAX) found that in 2003, Wisconsin state income taxes paid by filers with incomes in the $35,000-$75,000 range were higher than in most other states.
For single filers with incomes in this range, Wisconsin’s income taxes were among the top 10 nationally. For married, joint filers, Wisconsin ranked from 11th to 15th, depending on income. The state’s highest income tax ranking for any group was for married senior citizens with incomes of $50,000. These senior filers paid $1,970 in income taxes, 4th highest nationally.
Governor's Safety Conference
The 31st annual Governor's Conference on Highway Safety is being held August 17 and 18 in Green Bay. The conference highlights transportation safety and will touch on the wide variety of topics including ethics and lobbying, drowsy driving, drugged driving beyond illicit drugs and .08 - has it made a difference?
For more information on legislation of interest to CTCW members, go to the CTCW Tracking Report. |
| Wisconsin Politics |
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Sowa Seeking Democratic Nomination for Congress
Justin Sowa, a Democrat who works in international business, plans to run for Paul Ryan's congressional seat representing Wisconsin's southeastern corner.
Sowa is seeking the Democratic nomination to take on Ryan, R-Wis., who won the seat in 1998. The district includes portions of Kenosha, Racine, Milwaukee, Waukesha, Walworth and Rock counties. Ryan won 65 percent of the vote last year to win re-election. |
| Federal Developments |
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Bush Signs Energy Bill
President Bush on Monday signed sweeping legislation that provides billions of dollars in tax subsidies to energy companies.
The new 1,724-page energy law, [pdf doc] four years in the making, will provide $14.5 billion in tax incentives and provides for energy promotion, including incentives and loan guarantees for new nuclear power plants, clean coal technology and wind energy.
For consumers, the bill would provide tax credits for buying hybrid gasoline-electric cars and making energy-conservation improvements with better windows and appliances in new and existing homes. Also, beginning in 2007, the measure extends daylight-saving time by one month to save energy, starting three weeks earlier in the spring, and adding a week in the fall.
It also contains provisions to expand the use of ethanol in the nation’s fuel supply. Starting in 2006, the Act calls for four billion gallons of renewable fuel, with increased volumes each year up to 7.5 billion gallons by 2012.
Work on Federal Transportation Bill Complete
On Wednesday, August 10, President Bush signed the $386 billion federal highway funding bill in to law. Wisconsin received a 30 percent annual increase in federal highway funding - going from approximately $546 million to $712 million annually.
Wisconsin Congressman Tom Petri (R), who serves as the Chair of the House Subcommittee on Highways, Transit and Pipelines, played a crucial role in ensuring that Wisconsin received the much improved funding levels. The Wisconsin Dept. of Transportation has not announced where the additional resources will be spent. However, we should see significant impact on highway projects, transit and tourism.
There was a total of $275 million earmarked as High Priority Projects for Wisconsin. Some of the significant earmarks include:
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$28 million for the Lake Buttes des Morts Bridge
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$13 million to reconstruct Hwy 41 north of the Buttes des Morts Bridge
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$24 million for the expansion of Hwy 23
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$16 million to expand Hwy 10 between Marshfield and Stevens Pt.
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$10 million to replace the Wisconsin State Bridge (STH 44) in Oshkosh
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$7.2 million for preliminary engineering on I-94 between Mitchell IC and IL
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$13 million to rehab existing bridge and construct new bridge in Sturgeon Bay
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| Upcoming Fundraisers |
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Aug. 13
Aug. 16
Aug. 17
Aug. 18
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Sen. Cathy Stepp (R-Sturtevant), Madison
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Scott Walker (R) Gubernatorial candidate, Milwaukee
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JB Van Hollen (R) AG candidate, Eau Claire
Aug. 22
Aug. 24
Aug. 25
Aug. 27
For details, go to Hamilton Consulting Fundraiser Calendar. |
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.
To unsubscribe, go to: http://www.ctcw.org/form-unsubscribe-tidbits.html.
© 2005 The Hamilton Consulting Group |
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For Further Information |
For further information on these initiatives, contact Jim Hough at The Hamilton Consulting Group.
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In the News |
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Partial veto battle goes back a century: Milwaukee Journal Sentinel, Aug. 12, 2005.
Concealed weapon advocates alter approach: Milwaukee Journal Sentinel, Aug. 12, 2005.
No case for photo ID law (opinion): Milwaukee Journal Sentinel, Aug. 12, 2005.
State cuts could hurt county nursing home: Wausau Daily Herald, Aug. 12, 2005.
Governor says freeze better for education: Waukesha Freeman, Aug. 10, 2005.
Bad bill will bring more underage drinking in state (opinion): Oshkosh Northwestern, Aug. 12, 2005.
Governor's veto contributes to plight of women (opinion): Ashland Daily Press, Aug. 11, 2005.
More anti-business mischief in Madison (opinion): Beloit Daily News, Aug. 12, 2005.
Social Security program has roots in Wisconsin: Janesville Gazette, Aug. 12, 2005.
Power line work begins in northern counties: Milwaukee Journal Sentinel, Aug. 12, 2005.
Paid Sick Leave Plan Gets Mixed Reaction: Wisconsin State Journal, Aug. 11, 2005.
Bankers See Increase In ID Theft, Fraud: Wisconsin State Journal, Aug. 11, 2005.
Think very hard before changing state Constitution (opinion): La Crosse Tribune, Aug. 9, 2005.
GM scores in China with mini-minivans: Milwaukee Journal Sentinel, Aug. 9, 2005.
State sees double-digit growth in new businesses: Appleton Post-Crescent, Aug. 7, 2005.
Doyle, GOP flip-flop in debate over veto powers: Appleton Post-Crescent, Aug. 7, 2005.
Trails win with highway bill: Appleton Post-Crescent, Aug. 7, 2005.
Public-use ruling has political backlash: Milwaukee Journal Sentinel, Aug. 7, 2005.
Doyle detects new love: Madison Capital Times, Aug. 6, 2005.
Magnum set to face Baldwin again: Madison Capital Times, Aug. 5, 2005.
In-Depth Updates
Judicial Activism -
The Wisconsin Supreme Court 2005
2005-07 Budget -
Air Permit Fees
Wisconsin Product Liability Law -
A Summary of Proposed Changes
The Wisconsin State Budget 2005-2007- Budget Overview
Wisconsin Elections - An Overview
DNR Mercury Emissions Rule
Jobs Creation Act of 2003
More...
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