State Session Close to Finish Line
February 23, 2018

Dear WH&LA Lodging Member:
 
After calling to order at 1:00 pm Thursday (yesterday), the State Assembly finally adjourned for what was deemed their last meeting of the two-year legislative session at almost 2 am this morning. This leaves the State Senate remaining at work until their only remaining scheduled meeting on March 20 adjourns, at which point all bills from the session are either in line for the Governor to choose to sign or let expire, or they are failed and would need to start over from scratch in the next session starting in January of 2019. 
 
It can get complicated though, should the Senate want to make any changes to what bills the Assembly passed, as the Assembly then would have to choose whether to come back to order to address the differences, or let both versions of the proposed legislation fail.
 
The following are some highlights since our last WH&LA Capitol Insider on Monday:
 
LOCAL EXPOSITION DISTRICT FOR SUPERIOR AND EAU CLAIRE  (SB 727/AB 883)
While having a hearing in the Senate Committee, a hearing was never held in the Assembly Committee, and it never made it to the Assembly floor for a vote before adjournment. In the one hearing, legislators were caught by surprise to learn from WH&LA of the high total room tax this would cause and the fact that the local lodging and restaurant industries were not part of the proposal development. After the hearing it was apparent that the Eau Claire component was being dropped, and then that the Superior proposal data needed changes. This proposal is done for this session, but new variations may come back next session.
 
HISTORIC PRESERVATION TAX CREDITS  (SB 668/AB 793)
These bills propose an increase in the recently reduced (in the Budget) Historic Preservation Tax Credits from a $500,000 to a $3.5 million per project cap. Both the state Senate and the State Assembly passed the bills this week, meaning it now goes to the Governor for his determination. 
 
DOJ ADMINISTRATIVE SUBPOENAS FOR HOTELS RELATING TO HUMAN TRAFFICKING  (SB 541/AB 634)
These bills enable the Dept. of Justice (DOJ) to issue an administrative subpoena to hotels to solely obtain the name, address, and duration of a guest's use of the property's internet protocol, or IP address when suspected of human trafficking on site. A search warrant would still be needed for other information. This helps the DOJ in tracking and preventing suspected human trafficking, while protecting the property's potential liability in releasing this information. The WH&LA testified in support at both hearings. These bills passed both the State Senate and State Assembly this week and now go to the Governor for his anticipated signature.
 
CO DETECTOR REQUIREMENTS FOR LODGING PROPERTIES. (SB 748/AB 904)
These bills will shift the required locations for CO detectors in lodging properties and designate that inspectors of detectors must be certified by the state Dept. of Safety & Professional Services (DSPS - the agency overseeing construction and renovation of properties). Two amendments were introduced, one requested by WH&LA to reduce an inflated number of required detectors in structures with force-air furnaces to a more reasonable quantity. The Assembly passed their bill with both amendments, so this has moved to the Senate for consideration (first with an anticipated Committee vote and then to the floor) in March, which then would go to the Governor for approval.
 
EMPLOYMENT LAW STANDARDIZATION ACT   (SB 634/ AB 748)
These bills would prevent municipalities from enacting ordinances more strict than the state in employment regulations such as: required employee benefits, employee scheduling restrictions (recently providing challenges for the restaurant and lodging industries around the country), overtime regulations, minimum wage. An amendment removed employment discrimination from the list (due to the recent strong social media criticisms primarily from the LGBTQ community, but also others). An additional amendment was introduced early this morning to prevent any negative impact on the Foxconn development plans. The Assembly passed their bill with both amendments early this morning, sending the amended version now to the state Senate for their approval in March.
 
LATER HOURS FOR WINERIES; RENTED PRIVATE PROPERTY ALCOHOL SALES  (SB 311/ AB 433)
Originally only addressing extending hours for wineries to stay open for sales to midnight, this was recently expanded with an amendment that says municipalities can require them to close before midnight, but not earlier than the current 9 pm. A second amendment states that a private property rented out to the public that sells alcohol beverages for onsite consumption must be licensed (this covers private homes as well as "wedding barns"), and eliminates the current 4 liter limit on distilled spirits for off-site consumption. The Assembly passed their versions with the two amendments yesterday, with the amended package going now to the state Senate to determine if they will address it in March.
 
$6.8 MILLION IN NEW FUNDING TO ATTRACT/RETAIN WISCONSIN WORKERS   (SB 679/ AB 811)
These bills add funding to WEDC to develop and implement a marketing campaign (working with the Dept. of Tourism's Marketing Services) to attract and retain workers for Wisconsin, with part earmarked for targeting veterans.  The Assembly passed their version this week, and while it has passed Senate Committee it will need to be scheduled in the remaining Senate floor session to gain passage still.
 
MAKING UI FRAUD PENALTIES THE SAME AS FOR THEFT   (SB 542/ AB 710)
These bills would increase the penalties for fraud on Unemployment Insurance claims from $100-$500 or 90 days jail to  Up to $10,000 or 9 months jail (same as for theft). These bills passed both the Assembly earlier in the month and the Senate this week, so it now goes to the Governor for his anticipated signature.
 
REPEAL REQUIRING WI. CENTER DISTRICT TO TAKE PAC FROM MILWAUKEE COUNTY
While this began as a simple repeal of an obligation for the Wisconsin Center District in state law that most in the Milwaukee area tourism industry agreed was needed, this was already passed by the Senate on Tuesday as just that, however the Assembly added an amendment yesterday that will require the state Senate to re-consider it in order to go to the Governor (as both chambers must always pass the identical language before it can go to the Governor). The amendment addresses other seemingly unrelated county issues, such as the authority of filling County Board vacancies and county mental health facilities. It will be interesting if the Senate will approve or prevent the bill from passage due to the new amendment.
 
Other bills already approved by the Assembly earlier, may still be taken up in the state Senate in March, such as SB 451/ AB 544 on the Sale or Rental of Soda Water Equipment (would eliminate the current DATCP authority to regulate the terms of sale or rental for soda water beverage equipment, which should enable better negotiated purchases for the hospitality industry).
 
This summary is by no means complete in coverage of all the bills and actions that may be of interest, but focuses on most of shared interest to members.
 
As always we appreciate your interest and support.

 
Best,
Trisha
 
Trisha A. Pugal, CAE
President, CEO
Wisconsin Hotel & Lodging Association
262-782-2851
Contact: Trisha Pugal
Wisconsin Hotel & Lodging Association
[email protected]
262/782-2851