Governor Signs Budget Bill

Senate Democrats Replace Majority Leader

Wisconsin Medical Society Files Lawsuit to Seek Permanent Injunction to Stop Fund Transfer

Legislative Activity

Bill Offered to Settle Cable Disputes

Committee Recommends Bill Relating to Cable Television & Video Service Providers

Committee Hears Testimony on Price Gouging Rule

Rep. Gundrum Deployed

Governor Signs Budget Bill
On Friday, Oct. 26, Gov. Jim Doyle signed 2007 Wis. Act 20, the biennial budget bill, in a ceremony at UW-Madison Memorial Union. The final version of the budget is Conference Substitute Amendment 1, passed by the Assembly, 60-39, and the Senate, 18-15, on October 23.

The governor also issued a veto message explaining his vetoes of items including levy limits on local governments and technical college districts, free samples of liquor, and a three-tier distribution system for state wine sellers.

Selected Vetoes:

Education and Workforce

• Partial veto to remove references to eligibility criteria related to financial need.

• Partial veto to allow DOA to pay costs of operating the Office of the Wisconsin Covenant.

• Veto removes levy limits on technical college districts.

• Veto removes limits on workforce advancement training grants to small businesses and statutory grant ceiling.

Environment and Commerce

• Partial vetoes affecting loans for pulp and paper mill.

• Veto eliminates phase-out of PECFA program.

• Partial veto relating to JFC stewardship review because the review of land acquisitions should become effective with the reauthorized program on July 1, 2010.

Health and Family Services

• Veto removes requirement DHFS request a federal waiver in order to offer health opportunity accounts to BadgerCare recipients and to provide JFC with an implementation plan

• Veto affects requirement DHFS develop and implement disease management programs for conditions identified by health risk assessments by deleting the requirement that programs be similar to programs developed by the Marshfield Clinic.

• Veto affects requirement DHFS provide supplemental reimbursement to pharmacies participating in the Medicaid, BadgerCare and SeniorCare programs to compensate for any reduction in drug product costs reimbursements under the federal deficit reduction ac.

• Veto deletes report on FoodShare employment and training program participation.

• Veto deletes sunset of program for reducing fetal and infant mortality and morbidity.

Employment Relations Commission

• Veto restores original intent of allowing both firefighters and law enforcement officers the opportunity to use collectively bargained alternative disciplinary appeal procedures instead of circuit court.

Revenue

• Veto removes three-tier liquor distribution

• Partial veto affects inventory tax for moist snuff to make inventory tax consistent for cigarettes and moist snuff.

Shared Revenue and Property Tax Relief

• Partial veto of levy limit language affects “restrictiveness” of the limit for 2007, “which would negatively effect the provision of police and fire services.” The veto will allow local governments to increase their levies for 2007 by either the percentage increase due to net new construction or 3.86 percent.

Transportation

• Veto removes language prohibiting the budget bill from transferring funds out of the transportation fund.

• Vetoes remove requirement that DOT submit a10 year bonding strategy with each budget and requirement that DOT develop a plan to eliminate a biennial deficit in the transportation fund when deficit is estimated to exceed $30 million.

• Veto removes value engineering for highway improvement projects.

• Veto removes authority of municipalities to issue permits for activities along state trunk highways within municipal limits when DOT has denied the project.

• Partial veto of construction schedule for STH 23 major highway development project because the proposed schedule is “unattainable and may negatively affect other highway projects.”

• Veto removes requirements for JFC supplemental funding for the Kenosha-Racine-Milwaukee Commuter Rail extension project “because it infringes on the department’s ability to continue preliminary work on the project to determine its scope and final feasibility.

Senate Democrats Replace Majority Leader
After a caucus meeting on October 24, the Senate Democrats announced that they had voted to replace Sen. Judy Robson as majority leader in favor of Sen. Russ Decker.

Sen. Robson had been the majority leader since the Democrats took over leadership in the Senate last November.

Wisconsin Medical Society Files Lawsuit to Seek Permanent Injunction to Stop Fund Transfer
On Oct. 29, the Wisconsin Medical Society announced that it had filed a lawsuit against the State in an attempt to prevent a $200 million transfer from the Injured Patients and Families Compensation Fund (IPFCF) that is part of the State’s Budget Bill.

The suit asserts eight causes of action, including the seeking of a permanent injunction against transferring money from the Fund “because the Act is unconstitutional or otherwise invalid or unenforceable….” The complaint further states that this transfer of money “constitutes an unlawful tax and is, accordingly, invalid and void….”

Physicians and certain other health professionals are required to pay fees to the IPFCF. The Fund, established in 1975, ensures monies are available to support patients injured due to a determination of medical malpractice.

Legislative Activity
The current legislative floorperiod commenced October 23 and is scheduled to end on November 8. In its floorsession on Oct. 30, the Senate:

• Passed SB 15 on vote of 21-12 to have the Natural Resources Board appoint the DNR secretary, removing the ability of the Governor to make the appointment. (A companion bill, AB 504, had a public hearing before the Assembly Committee on Natural Resources on October 10.)

• Passed SB 226, which makes changes to the Health Insurance Risk-Sharing Plan (HIRSP), on a voice vote as amended by SS1.

In Assembly action, the body passed:

• AB 409 that expands the area in which a TIF’s project costs may be spent (96-0) as amended.

• AB 254 relating to municipal boundary agreements and use of alternative dispute resolutions on a vote of 95-1.

Bill Offered to Settle Cable Disputes
The State Legislature is expected to consider a bill to address concerns about the Big Ten Network and the NFL Network being unavailable on many cable networks across Wisconsin.

The proposal would set up a system that would allow an arbitrator to settle any disputes between sports networks and cable companies. The bill, to be introduced by Sen. Dave Hansen, D-Green Bay, and Rep. Kitty Rhoades, R-Hudson, is being circulated for co-sponsors. Read release.

Committee Recommends Bill Relating to Cable Television & Video Service Providers
The Joint Finance Committee passed the “cable competition bill” (AB 207) on a 13-3 vote on Oct. 31. Voting against the bill were Dem Sens. Bob Jauch of Poplar and Mark Miller of Monona, and Dem Rep. Mark Pocan of Madison.

Committee Hears Testimony on Price Gouging Rule
The Senate Committee on Small Business held a public hearing last week on a proposed administrative rule (DATCP 106) that would establish price caps on all products sold at wholesale or retail when the Governor declares an economic emergency.

Hamilton’s Bob Fassbender testified on behalf of a business coalition opposing the rule. Their written comments outline the rule’s defects, including expected supply shortages arising from the proposed 10 percent price cap. No one testified or register in support of the rule other than DATCP.

2005 Wis. Act 450 was enacted by the Legislature and prohibits excessive pricing of consumer goods during times of abnormal economic disruption. The Department of Agriculture, Trade and Consumer Protection (DATCP) is directed to develop a rule that sets forth the criteria used in determining whether a price is unreasonably excessive.

The agency has requested further clarification on the cap, which is set at 10 percent above the highest price in the previous 60 days. (See Hamilton Act 450 Update.)

For more information on legislation of interest to CTCW members, go to the CTCW Tracking Report.

Rep. Gundrum Deployed
State Rep. Mark Gundrum (R-New Berlin) has been called up for active duty and will be sent to Fort Bragg, N.C. for training before going to Iraq sometime in January. The deployment may last up to a year.

Gundrum, who is a lawyer, is judge advocate for his battalion. He will be taking a leave of absence from the Legislature at the end of November, but plans to return in time for the next legislative session.

Bill aims to clear static over channels; measure may boost availability of NFL, Big Ten games: Appleton Post-Crescent, Oct. 31, 2007.

Lawmakers try to get football on cable: Green Bay Press-Gazette, Oct. 31, 2007.

State budget rife with pork, special favors (opinion): Wausau Daily Herald, Oct. 29, 2007.

Frankenstein hikes your property taxes (opinion): Wisconsin State Journal, Oct. 29, 2007.

Gas group leader disagrees with ruling: Eau Claire Leader-Telegram, Oct. 29, 2007.

Northeastern Wisconsin sees its share of benefits from budget: Appleton Post-Crescent, Oct. 28, 2007.

Ladwig displeased with vital records fee increase: Racine Journal Times, Oct. 28, 2007.

Huebsch and Doyle deserve credit for compromise budget (opinion): La Crosse Tribune, Oct. 27, 2007.

Liquor license cap still a target: Milwaukee Journal Sentinel, Oct. 28, 2007.

Budget 'pork' is tough to pin down: Milwaukee Journal Sentinel, Oct. 27, 2007.

Jauch: ‘Good for us all’: Ashland Daily Telegram, Oct. 27, 2007.

New health bill may meet same fate as 1st: Milwaukee Journal Sentinel, Oct. 27, 2007.

Lawmaker to be deployed: Milwaukee Journal Sentinel, Oct. 26, 2007.

Legislative panel vote dooms KRM: Racine Journal Times, Oct. 22, 2007.

Drivers should expect steep fee increases: Wisconsin State Journal, Oct. 23, 2007.

State doctors could see higher fees: Milwaukee Journal Sentinel, Oct. 21, 2007.

Execs tout universal coverage: Milwaukee Journal Sentinel, Oct. 21, 2007.

For more Wisconsin News, go to Hamilton Consulting News Clips.

Nov. 6

• Sen. Ted Kanavas (R-Brookfield), Nashotah

Nov. 13

• Sen. Neal Kedzie (R-Elkhorn), Waukesha

Nov. 15

• Sen. Ted Kanavas (R-Brookfield), Brookfield

For details, go to Hamilton Consulting Fundraiser Calendar.

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