Capitol Notes: Weekly Political and Legislative Update 9/30/11

Capitol Notes

WI: Weekly Political and Legislative Update

TO: Clients/Friends of Capitol Consultants, Inc./Wimmer & Company, S.C.

FROM: Capitol Consultants, Inc.
& Wimmer Company, S.C.

DATE: September 30, 2011

SUBJECT: Weekly Legislative and Political Update

In This Issue

Special Session on Jobs Update

Governor Names New Chief of Staff

2012 Election Happenings

The Week Ahead

Special Session on Jobs Update

This past week, Governor Walker signed an executive order calling for a special session of the legislature to focus on job creation. Walker called the request the 'Back to Work' special session that includes several pieces of bipartisan legislation that focuses on improving access to capital and loans, enhancing worker training, reforming the regulatory process and providing additional tort reform measures.

The Special Session is expected to coincide with the fall floor period, which is scheduled to meet in the middle of October and go until the first week in November.

Reaction the Governor's request for the most part fell along partisan lines.

Assembly Speaker Jeff Fitzgerald released the following statement.

"The second Special Session on Jobs shows that the governor and Assembly Republicans

are still focused on job creation as our top priority. I've stated before that government cannot create jobs, but the results of our previous Special Session are evidence that we can improve the environment for job creation. Those changes have encouraged entrepreneurs to start up companies and allowed existing businesses to expand or relocate here. There is still much work to do, and I look forward to working with Governor Walker and my legislative colleagues in taking additional steps to put Wisconsin back to work."

Senate Majority Leader Scott Fitzgerald offered the following comment.

"There's no more important issue than getting Wisconsin back to work. I'm pleased that this call includes reforms from Sens. Pam Galloway, Terry Moulton, Rob Cowles and Glenn Grothman. Our caucus promised to work on jobs first and foremost, and while this package won't be the sum total of our job-related efforts, I'm glad their ideas are being highlighted.
For both sides of the aisle, the issue of jobs should be a goal, not a political weapon. We should be focused on progress, not politics, so I'm glad this special session includes bills from Republicans and Democrats both."

Assembly Minority Leader Peter Barca (D-Kenosha) released the following statement.

"I appreciate that Gov. Walker has included a few Democratic jobs bills in his second special session. Democrats have been clear on this issue from day one: hurry bills that put people to work quickly and slow down and scrutinize bills that favor special interests.

"Special sessions should be limited to bills that put people back to work now, but very little in Gov. Walker's announcement does anything to create jobs now. It is an abuse of power to talk about job creation and bipartisanship as a cover for advancing a partisan agenda that rewards Republican donors and special interests at the expense of Wisconsin's working, middle-class families."

In his remarks, Senator Minority Leader Mark Miller (D-Monona) said, "Nearly 14,000 Wisconsinites have lost their job since Governor Walker and the Republicans took over in

January. In that time we've seen precious little action from Republicans to put people back to work. Instead, there have been power grabs, special interest payoffs and passage of an extreme, radical agenda that gives billions in tax cuts to the wealthy and corporations while sticking middle class and working families, children and seniors with drastic cuts to education and health care. There are a handful of bills authored by Democrats that will really create jobs and help put people back to work included in the Governor's special session call.

However, it appears that there will also be another attempt to rush through controversial, harmful legislation that, for example, takes rights away from families and paves the way for environmentally destructive mining. Middle class and working families need far more than what the Governor and legislative Republicans are offering today."

Here is a full list of bills called for in the special session:

Access to Capital

Assembly Bill 20-Rep. Barca and Sen. Lassa, allowing refunds for the early stage seed and angel investment tax credits and making an appropriation.

Assembly Bill 90 and Senate Bill 40-Rep. Clark and Sen. Lassa, entrepreneurial tax credit access grants, providing an exemption from emergency rule procedures, granting rule-making authority, and making an appropriation.

Assembly Bill 179-Rep. Weininger and Sen. Cowles, authorizing the creation of a multijurisdictional tax incremental financing district.

Assembly Bill 211-Rep. Molepske, Rep. Williams and Sen. Lassa, an income and franchise tax credit for investments in a community development financial institution.

LRB 1875-Rep. Petryk, Bernier and Larson and Sen. Leibham, small business loan guarantees by the Wisconsin Housing and Economic Development Authority.

LRB 1877-Rep. Nerison and Sen. Schultz, changes to agricultural production and loan guarantee programs administered by the Wisconsin Housing and Economic Development Authority.

LRB 2861-Sen. Wanggaard and Rep. Marklein, creation of the Wisconsin Next Generation Reserve Board and Wisconsin next generation reserve fund, authorizing the State of Wisconsin Investment Board to provide certain advice, services, facilities, and loans to state agencies and others, and making appropriations.

Regulatory Streamlining

Wetland and Habitat Restoration-Sen. Kedzie and Rep. Mursau, Changes to wetland water quality certifications which will help streamline the permitting process while maintaining protections for our most valuable wetland resources

LRB 1446-Sen. Kedzie and Rep. Mursau, information required to be published on the Department of Natural Resources Internet Web site; identification of areas of significant scientific value for purposes of regulating the placement of deposits and structures on the beds of navigable waters and the removal of materials from the beds of navigable waters; requirements for the placement of certain piers and wharves; repair and maintenance of boat houses and fixed houseboats; permit exemptions for land grading activities and for persons who place piers and wharves in navigable waters; placement of fill or structures within a bulkhead line; procedures for issuing individual permits, contracts, and general permits and contracts for structures, deposits, and other activities in or near navigable waters; expedited procedures for plan approvals for dams and for water and sewerage systems; and granting rule−making authority.

LRB 2769-Rep. Strachota and Sen. Zipperer & Galloway, various duties of the Department of Revenue, including issuing declaratory judgments, conducting audits and assessments, asserting liability, allowing claims for refunds, awarding the costs of litigation, imposing penalties related to a taxpayer's negligence, and requiring the exercise of rule−making authority.

LRB 2854 - Governor Walker, the film production services tax credit application fee.

Workforce Development

Assembly Bill 97-Rep. Ripp and Sen. Lassa, advanced manufacturing skills grants for technical colleges.

LRB 2221-Rep. Radcliffe, authorizing a school board to grant a vocational high school diploma.

Tax Relief

Assembly Bill 145 and Senate Bill 102-Sen. Leibham and Rep. Klenke, authorizing the Public Service Commission to approve temporary electric rates to promote economic development.

Assembly Bill 220-Rep. Murtha and Sen. Moulton, an income and franchise tax credit for workplace wellness programs, granting rule-making authority, and requiring the exercise of rule-making authority.

AB 277 and SB 203-Rep. Strachota and Sen. Wanggaard, adopting federal law as it relates to excluding from an employee's income certain payments from an employer related to medical care.

Senate Bill 171-Sen. Taylor and Rep. Toles, exempting from income taxation certain employer-paid fringe benefits for mass transit expenses.

Transportation and Infrastructure

Assembly Bill 252 and Senate Bill 195-Rep. Petrowski and Sen. Lazich, seasonal weight limitations for certain vehicles transporting agricultural crops

Assembly Bill 253 and Senate Bill 189-Rep. Petrowski and Sen. Lazich, the maximum permissible length of vehicles carrying poles, pipe, girders, and similar materials on highways

Assembly Bill 254 and Senate Bill 190-Rep. Petrowski and Sen. Lazich, the maximum permissible length of single vehicles operated on a highway without an overweight permit

LRB 2900-Rep. Petrowski and Sen. Lazich, permits for overweight vehicle combinations transporting sealed containers or vehicles in international trade

LRB 2901-Rep. Petrowski and Sen. Lazich, annual or consecutive month permits for certain overweight vehicle combinations transporting agricultural commodities

Litigation Certainty

LRB 2670-Rep. Vos and Sen. Zipperer, factors for determining the reasonableness of attorney fees.

LRB 2890-Rep. Kooyenga and Sen. Zipperer, providing immunity from liability to drug and device manufacturers and sellers under certain circumstances

LRB 2939-Rep. Williams and Sen. Galloway, duty of care owed to trespassers

LRB 2966-Rep. Paul Farrow and LRB 2838 - Sen. Rich Zipperer, interest rates on judgments in certain civil actions

Governor Names New Chief of Staff
This week, Governor Scott Walker named a new chief of staff and made several other staff changes to his office. Walker promoted Eric Schutt, the Governor's current Deputy Chief of Staff, to the top position in his office. Schutt replaces current Chief of Staff Keith Gilkes who is returning to the private sector after successfully managing the Governor's campaign last fall and after serving as Chief of Staff since this past January.

Schutt begins his new role on October 8.

In making the announcement, Governor Walker said, "Keith did an outstanding job helping to craft and implement our ambitious pro-jobs agenda. I would like to thank him for his dedication to public service, and acknowledge the tremendous amount of time and energy he spent working to help improve state government. I believe we have a team in place that will help our state create and execute policies aimed at allowing the private sector to create 250,000 new jobs by 2015."

The Governor also announced several other staff changes. which include:

Eric Schutt, Chief of Staff -Schutt previously served as Governor Walker's deputy chief of staff. Before that he was the vice president of state government affairs for UnitedHealth Group (UHG). Prior to joining UHG, Schutt worked in the Legislature as chief of staff to State Representative and then Joint Finance Committee Co-Chair Kitty Rhoades (R-Hudson) during the 2007-2008 legislative session and State Senator Joe Leibham (R-Sheboygan) during the 2005-2006 session. A longtime campaign aide, Schutt has served in various roles on numerous campaigns, including Deputy Campaign Manager on Mark Green's gubernatorial campaign in 2006, campaign manager for Russ Darrow's US Senate run in 2004, and Executive Director for the Republican Party of Wisconsin in 2002. Schutt began his career in politics in 1994 working on the reelection campaign of Congressman Scott Klug (R-Madison).

Ryan Murray, Deputy Chief of Staff -Murray previously served as Governor Walker's policy director, deputy transition director to Governor-elect Walker and policy director for the Walker gubernatorial campaign. Murray previously served as chief of staff for Senator Randy Hopper (R-Fond du Lac) and communications director for Senator Scott Fitzgerald (R-Juneau).

Kimberly Liedl, Policy Director -Liedl previously served as Governor Walker's Health Care and Education Policy Advisor. Before that, she served as communications director for Senator Scott Fitzgerald (R-Juneau) during the 2009-2010 legislative session and as his health care and education policy advisor during the 2007-2008 session. Prior to that, she was the committee clerk for the Senate Judiciary, Corrections and Privacy Committee for Senator Dave Zien (R-Eau Claire) and Assembly Tourism Committee clerk for Rep. Mark Pettis (R-Hertel).

Julie Lund, Deputy Communications Director -Lund worked in television news since 1995 as a reporter, producer, and anchor. She worked for WJFW in Rhinelander and WKOW and WMSN in Madison. She graduated from Northland Pines High School in Eagle River and obtained a BA in Mass Communications and minor in speech from the University of Wisconsin La Crosse.

Cindy Polzin, Legislative Director -Polzin previously served as Governor Walker's Legislative Liaison. Prior to that she worked as a legislative staffer, Senior Account Executive at Persuasion Partners, Inc. and served as a policy advisor for Attorney General J.B. Van Hollen.

2012 Election Happenings

This week saw two familiar State Capitol faces opt out of running for higher office. Long-term State Senator Jon Erpenbach (D-Middleton) decided not to run for the open 2nd Congressional Seat that is being vacated by U.S. Representative Tammy Baldwin (D-Madison). Also, former State Senator Ted Kanavas (R-Brookfield) chose not to run for the open U.S. Senate seat, which is being vacated by popular, four-term U.S. Senator Herb Kohl (D-Milwaukee).

According to Wispolitics.com, Erpenbach, who is viewed by many Democrats and public union members across the state as the face of this spring's opposition to the Governor's bill to curtail collective bargaining, said that he chose not to run for the open Democratic congressional seat because the fight to protect Wisconsin's "programs and people is here in Wisconsin."

Erpenbach has also frequently been mentioned as a possible candidate for Governor if a recall of Governor Walker occurs next year.

So far, Democratic State Reps. Mark Pocan and Kelda Roys and Dane County Treasurer Dave Worzala, who is also a Democrat, have announced for the open congressional seat.

In making his decision not to run, Kanavas, who served for seven years in the State Senate, said that he it would be too difficult to raise the money necessary to win. He added that a four- or five-candidate GOP field would make it tough to fundraise in hard economic times. He also added that many donors have said privately that they would refrain from supporting anyone out of respect for Tommy Thompson's political legacy in Wisconsin.

So far, on the GOP side, only former U.S. Rep. Mark Neumann has officially announced his candidacy. Former Goverrnor Tommy Thompson has filed the paperwork necessary to begin raising money and is expected to announce soon, while Assembly Speaker Jeff Fitzgerald (R-Horicon)and State Senator Frank Lasee (R-Bellvue) are also considering bids (www.wispolitics.com).

In Presidential-related politics, Governor Walker signed Senate Bill 115, which changes the presidential primary election date in Wisconsin, into law as Act 45. The presidential primary will now take place on the same day as the spring general election. Wisconsin's previous presidential primary date was in February, and with the signing of this law it will move to April.

In signing the legislation, the Governor made the following statement:

"Holding Wisconsin's presidential primary election on the same day as the routine spring elections will make the administration of our elections more cost efficient-saving valuable taxpayer dollars," said Governor Walker. "I was pleased to sign a bill into law this morning that received support from Republicans, Democrats and the Legislature's one independent member. Moving forward I am hopeful we can continue down the path of working together to help create an economic environment that allows the private sector to create 250,000 new jobs by 2015."

The Week Ahead

Oct 4 Tue

Jobs, Economy and Small Business (Assembly) (Executive Session)
10:00 AM
328 Northwest

Items: Assembly Bill 107

Executive Session

Oct 4 Tue

Education (Assembly)
10:00 AM
417 North (GAR Hall)

Items: Assembly Bill 215; Assembly Bill 224; Assembly Bill 259