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Acting on what economic
development and business leaders have dubbed the number one economic
development issue facing the state, the Wisconsin Legislature this week
acted on four high profile civil justice bills, giving final passage to
three of them. Bills relating to product liability, expert opinion
evidence, and medical malpractice noneconomic damage caps have all passed
both houses of the Legislature in identical form and now await action by
the Governor. The proposal relating to manufacturer/seller liability (The
Jobs Preservation Act) has been enacted in both houses but in separate
bills - one Assembly and one Senate - and final action is not expected
until December.
The Governor’s office has
hinted at a likely veto of the medical malpractice caps, suggesting that
the legislation as it relates to the amount of the cap is too close to
what the Wisconsin Supreme Court struck down in
July and, in the Administration’s view, would not withstand constitutional
challenge. Legislators argue, however, that the Legislature responded to
the Court’s concern about process and establishing a “rational basis” for
its public policy enactment. A veto followed by a new bill with a
different cap is a possible scenario.
According to the November 9 Milwaukee
Journal Sentinel article, the Governor’s press secretary opined that
the Governor is not likely to sign the product liability bill since it
would give a “free pass” to those who make faulty products. Sen. Ted
Kanavas and Assembly Majority Leader Mike Huebsch, the chief authors of
the legislation, argue that a bill that adopts the same standard for
establishing strict liability as 46 other states is not a radical
proposal.
The third bill that has passed
both houses of the Legislature would establish higher standards for the
admission of expert opinion evidence in Wisconsin Courts in civil and criminal
cases. If enacted, the standards would mirror or be very similar to the
laws in 33 other states and the entire federal system. The standards are
based on the U.S. Supreme Court Daubert
decision from 1993. There has been no indication from the Governor’s
office regarding whether or not the Governor will sign the bill, although
he did veto a bill that passed last session but applied the standards to
civil cases only.
The fourth proposal relating
to manufacturer/seller liability and requiring traditional proof of
causation in all but extremely limited circumstances has received a
majority vote in both houses (separate bills) and will not receive final
legislative approval until the week of December 5. The delay was
precipitated by a legitimate desire to craft language between the
Governor’s office and legislative sponsors that does not alter the intent
of the bill, but allows the Governor to sign it into law.
Under the Wisconsin Constitution, the Governor
has six days, excluding Sundays, to act on bills after they have “reached
his desk” or those bills automatically become law. By tradition, unless
bills are delivered directly by the Legislature, bills do not “reach the
Governor’s desk” until the Governor is ready to act and calls for the
bills. By law, however, any bills currently through the Legislature that
have not been acted upon by the Governor will be delivered to him on
January 5, which starts the six day time clock ticking.
Below are links to the
specific bills discussed in this introduction.
The State of Wisconsin lost a
real pioneer in the advancement of services to the Legislature, and I have
lost a friend, with the passing of H. Rupert Theobald, who headed the
Wisconsin Legislative Reference Bureau for 30 years from 1964 through
1994. The entire state is indebted to Rupert for the incredible
contributions he made to the lawmaking process and the advanced clarity
and understanding of complicated legislative enactments. He also developed
a records and research center that continues to amass valuable information
regarding our government. Rupert was my first boss out of law school as I
worked as a bill drafter for first six months of my legal/government
relations career. Articles in today’s papers recount that what the “H”
stood for was always a mystery until, upon Rupert’s retirement, then Chief
Justice Heffernan stated to all present that the “H” stood for Honorable.
There can be no finer tribute.
| In this Issue |
 |
Liability Reform Legislation
Other Legislative Activity
Assembly Approves WHEDA Modernization Bill
Prepayment Parity Legislation Passes Assembly
Businesses Qualify for Investor Tax Credits
Eminent Domain in Supreme
Court/Legislature
Economic Growth Bill
Advances
Committee Recommends Changes to Repossession Law
Dr. H. Rupert Theobald
Falk Announces Candidacy for Attorney
General |
| Policy Developments |
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Liability Reform Legislation
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SB-58.
Product liability of manufacturers, distributors and sellers.
Concurred in by the Assembly on November 8 on a vote of 60-36.
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SB-70.
Expert opinion evidence. Concurred in by the Assembly on November
8 on a vote of 60-36.
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AB-766.
Caps on noneconomic damages in medical malpractice cases.
Concurred in by the Senate on November 8 on a vote of
19-14.
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SB-402. Liability of manufacturers and sellers, requiring proof of
causation in nearly all cases. Passed the Senate on November 8 on
a vote of 19-14. The companion bill, AB-778,
passed the Assembly on a vote of 60-36.
Other Legislative Activity
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SB-164.
Notice regarding unauthorized acquisition of personal information. Sub. 3 adopted, voice vote. Passed, voice vote.
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AB-764.
Medical Malpractice - collateral source rule; concurred in
19-14.
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AB-765.
Coverage under the uninjured patients and families compensation
fund of medical school graduates engaged in postgraduate training. Concurred, voice vote.
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AB-464 adds abandoned residential property to the definition of
brownfield for purposed of the stature authorizing assignment of
tax delinquent brownfield property.
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AB-783. (In lieu of SB-401). Duties of real estate brokers and
salespersons.
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AB-298.
Tourism promotion and development under the room tax. Sub. 1
adopted, voice vote. Passed, 80-14.
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SB-290.
Claiming early stage seed and angel investment income and
franchise tax credits. Passed, voice vote.
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AB-788. State Contract processes. Passed the
Assembly 92-2.
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AB-129. Late Payments of property tax
installments. Passed the Assembly 74-18.
Assembly Approves WHEDA Modernization Bill
AB-593,
which nearly doubles the Wisconsin Housing and Economic Development
Authority (WHEDA) bonding authority, passed the State Assembly on
Thursday, Nov. 10. WHEDA is a $3 billion organization which provides
mortgages for first-time home buyers as well as finances economic
development initiatives through a unique bonding program.
The WHEDA modernization bill had broad bi-partisan support,
including support from Governor Doyle until Assembly Amendment 1 was
added, which would prohibit WHEDA from assuming or providing loans
to those with ITIN identification only. ITINs are issued to
individuals who are required to have a U.S. taxpayer identification,
however, are not eligible to obtain a Social Security Number.
The language stems from Assembly
Bill 85, which was also passed by the Assembly this week. Since
this amendment was adopted as part of the modernization bill,
several democratic members removed their names from the
bill.
AB-593 now goes to the Senate. Governor Doyle has not made
any public statements on whether or not he will sign the bill, as
amended, into law.
Prepayment Parity Legislation Passes Assembly
AB-456,
relating to prepayment penalties on variable rate residential
mortgage loans, passed the Assembly (95-0
without debate) on Tuesday. This bill, which is authored by Rep.
Jean Hundertmark (R-Clintonville), would allow a lender to
assess a prepayment penalty within the first three years of a
variable rate interest loan.
The intent of this proposal is to level the playing field
between state and federally chartered lending institutions, which
are able to assess prepayment penalties. Prepayment penalties must
be disclosed up front by the lender and may not be charged upon the
sale of the house.
Businesses Qualify for Investor Tax Credits
Gov.
Jim Doyle recently announced that the Department of Commerce
(Commerce) has qualified five small businesses for investor tax
credits under the new Angel Investor and Venture Fund Tax Credit
Programs.
The Angel Investor and Venture Fund Tax Credit Programs offer
Wisconsin income tax credits to angel investors and investors in
seed-stage venture capital funds. These programs are designed to
increase the supply of both qualified angel investors and investors
in qualified venture capital funds. The tax credits are available
only for investments made in technology businesses qualified by
Commerce.
Eminent Domain in Supreme
Court/Legislature
On
Wednesday, Nov. 9, the Wisconsin Supreme Court heard testimony
(03AP3353 J. Hilton v. Dept. of Natural Resources) on a case
regarding a Department of Natural Resources order involving a Green
Lake pier. The issues include whether the lower court correctly
balanced the interests of the homeowners against the interests of
the public, and whether the removal of boat slips constituted an
illegal “taking” without due process.
The court case presents issues
closely related to pending legislation, AB 657,
introduced Sept. 9, that would restrict the condemnation of
property if the community plans to turn over the property to a
private party. The legislation was introduced in response to a
Supreme Court ruling in June upholding the use of eminent domain for
a redevelopment project in New London, Conn.
The Wisconsin Department of Natural Resources (DNR) recently
completed the final draft of new administrative rules regulating the
size and placement of piers (Wis. Admin. Code Ch. NR 326). The
proposed pier rules will apply to both new piers and existing piers.
DNR regulations could make thousands of piers in the state illegal
and subject homeowners to steep fines, even for putting in the same
pier they’ve had for decades.
The rule is being vehemently opposed by the Wisconsin
Realtors and others who argue that one of the goals of the Jobs
Creation Act (regulatory reform) was to create standards for piers
based on law and have some oversight by elected officials over their
enforcement.
Economic Growth Bill
Advances
Assembly
Bill 623 was passed by the Assembly Ways & Means Committee
Wednesday by a unanimous vote. This legislation provides a sales tax
exemption for electricity used in research and development
activities in Wisconsin.
This bill is supported by, among
others, Wisconsin Economic Development Association and Wisconsin
Manufacturers & Commerce.
Committee Recommends Changes to Repossession
Law
The Assembly Financial Institutions Committee on Thursday
voted to recommend passage of AB-594,
which makes various changes relating to the repossession of property
that are intended to bring Wisconsin law in line with virtually
every other state in the country.
Dr. H. Rupert Theobald
Dr. Theobald, 75, died on
Wednesday, November 9. He had served as Chief of the Legislative
Reference Bureau for 30 years, retiring in 1994. Funeral
arrangements are pending.
For more
information on legislation of interest to CTCW members, go to the CTCW
Tracking Report. |
| Wisconsin Politics |
|
Falk Announces Candidacy for Attorney General
On
Monday, Nov. 7, Dane County Executive Kathleen Falk announced her intention to run as a candidate for state attorney general,
setting up a primary contest with incumbent Peg
Lautenschlager.
Falk was elected county executive in 1997; she was re-elected
in 2001 and again in April, without opposition. Before that, she
served as an assistant attorney general at the state Department of
Justice and was the state's public intervenor on cases to protect
natural resources.
Former U.S. Attorney, J.B. Van Hollen is and Waukesha County
District Attorney Paul Bucher are the announced republican
candidates. |
| In the News |
|
Fixing
the burden of proof (opinion): Milwaukee Journal Sentinel, Nov.
10, 2005.
State
will review sales tax payments: Milwaukee Journal Sentinel, Nov.
10, 2005.
Property
law defended: Milwaukee Journal Sentinel, Nov. 10,
2005.
Windfall
from Asia: Milwaukee Journal Sentinel, Nov. 10,
2005.
Post-hurricane
energy recovery may take longer: Milwaukee Journal Sentinel,
Nov. 9, 2005.
Senate
soothes business interests: The Capital Times, Nov. 9,
2005.
Malpractice
caps bill goes to Doyle: Milwaukee Journal Sentinel, Nov. 9,
2005.
Assembly
panel votes to pass conceal carry bill: Milwaukee Journal
Sentinel, Nov. 9, 2005.
Cutbacks
in child support challenged: Milwaukee Journal Sentinel, Nov. 9,
2005.
Some
On Board OK With Falk: Wisconsin State Journal, Nov. 9,
2005.
Bill on
abortion warnings advances: Milwaukee Journal Sentinel, Nov. 9,
2005.
Bill
puts cost of health care on agenda (opinion): Marshfield News
Herald, Nov. 9, 2005.
State to
file complaints against hospitals: Milwaukee Journal Sentinel,
Nov. 8, 2005.
Local
doctors, lawmakers at loggerheads over malpractice caps: Ashland
Daily Press, Nov. 8, 2005.
Lawmakers
work to sink DNR's new regulations on piers: Milwaukee Journal
Sentinel, Nov. 8, 2005.
It's
An Issue In The Race For Attorney General: Wisconsin State
Journal, Nov. 8, 2005.
Falk
is in race for AG: The Capital Times, Nov. 7, 2005.
Gov.
Doyle leading Europe trade mission: The Capital Times, Nov. 7,
2005.
GOP
candidates visit town for Reagan Day celebration: Ashland Daily
Press, Nov. 7, 2005. |
| Upcoming Fundraisers |
|
Nov. 14
-
Scott Walker (R) gubernatorial candidate,
Franklin
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Rep. Sue Jeskewitz (R-Menomonie Falls), Hubertus
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Rep. Judy Krawczyk (R-Green Bay), Green Bay
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JB Van Hollen (R) AG candidate, Marshfield
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Rep. John Gard (R-Peshtigo), De Pere
Nov. 15
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Scott Walker (R) gubernatorial candidate,
Waterford
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Sen. Roger Breske (D-Eland), Madison
Nov. 16
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Scott Walker (R) gubernatorial candidate,
Milwaukee
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Rep. John Lehman (D-Racine), Racine
Nov. 17
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Sen. Joe Leibham (R-Sheboygan), Madison
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Rep. John Gard (R-Peshtigo), Wausau
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Rep. Gene Hahn (R-Cambria), Fall River
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Pat Kreitlow (D) 23rd SD candidate, Chippewa
Falls
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Sen. Scott Fitzgerald (R-Juneau), Madison
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Sen. Ron Brown (R-Eau Claire), Warrens
Nov. 18
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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