April 15 State Issues Update
April 15, 2015
Between the legislature's Joint Finance Committee hearings and their early stages of negotiating revisions, and the rest of the state legislature proceeding with introducing new bills and hosting committee meetings and public hearings, legislators are already in high gear, meaning those of us working on legislative issues are kept on our toes trying to learn about proposals as soon as they are public, and whenever possible, beforehand. To date, there are 106 bills already introduced in the Senate and 143 bills introduced in the Assembly. The following are just a few of the latest topics on the table.
"Camping Units" Separate Regulations (SB 94 and AB 121)
Proposed by the Wisconsin Association of Campground Owners (WACO), these bills were officially introduced late Friday, and AB 121 is already scheduled for a public hearing tomorrow, April 2 at 10:00 am by the Assembly Committee on Housing and Real Estate.
As mentioned previously from its draft form, this bill creates the authority for the Department of Safety and Professional Services (DSPS) to set their own regulations for what is deemed "camping units" at campgrounds. These units are not specifically defined in the bill, except to require that they are set in a fixed location in a campground, contain a sleeping place, and are used for seasonal overnight camping. Currently, structures such as these that are rented out to the public are to be licensed as a tourist rooming house, following the same construction and inspection requirements. The authorized separate regulations would cover construction, inspection, installing, repairing and maintaining electrical wiring, ventilating, heating and air conditioning, and plumbing. The DSPS would determine these regulations with input from the Dwelling Code Council.
WH&LA has expressed concerns with the lack of a specific definition of the "camping unit," which would also be left to DSPS to define past the basics in the bill. Over 100 of our member properties have cabins and cottages that could be defined as "camping units" if they have a campground license. If however they are licensed as a tourist rooming house, under this bill the identical unit rented out to the public at a campground could have considerably less stringent regulations. Our suggestion has been to more clearly define "camping unit" up front, and in order to be considered more for camping, it should be defined to be a structure without plumbing, and that the need still would exist for electrical work to comply with current regulations to ensure the safety of the public.
If this impacts you and you wish to send comments to the Committee, you do not have to attend the hearing, but can still have your voice heard by sending an email by Friday to the following Committee on Housing and Real Estate Members, being sure to identify yourself, your property name and location, and your contact information, along with reference to "AB 121":
SB 69 & AB 91 Amending Wisconsin's Non-Compete Agreement Statute
Some lodging properties and hospitality companies utilize non-compete agreements for specific management or sales or other positions. WH&LA Legal Counsel Barry Chaet (Beck, Chaet, Bamberger & Polsky, S.C.) has provided an overview of two bills recently introduced and supported by WMC (Wisconsin Manufacturers & Commerce) that would impact non-compete agreements in Wisconsin. Both bills were assigned to committees but no hearing has yet been scheduled.
AB 27 & SB 26 Authority to Increase to 70 MPH
Mentioned in a previous Capitol Insider, AB 27 has moved quickly, and has already passed out of Assembly Committee with two amendments enabling commercial motor carriers to still follow a 65 MPH speed limit. The amended bill was then passed by the full Assembly, and has been sent to the Senate for consideration in it's amended form, where it is still sitting.
Elimination of Personal Property Tax
State Sen. Tom Tiffany and State Rep. Bob Kulp are circulating a proposed bill for co-sponsorship that would phase-out by 2020 all personal property taxes on businesses. Welcomed by numerous business organizations as a way to make Wisconsin more business-friendly, the League of Municipalities has already come out with comments that this would result in less municipal services or possibly would cost residents more money through other revenue sources. The sponsors are noting that personal property tax collecting is labor intensive for both businesses in remitting and municipalities in collecting and monitoring, with the total amounts collected not always worth the burden. Introduction of the bills in each house is anticipated in coming days.
State Budget
The Joint Finance Committee has completed their series of Public Hearings on the Governor's State Budget Proposal around the state as of late last week. With many citizens, institutions, and organizations strongly objecting to numerous components, the Committee will have their hands full in making revisions they believe will improve the budget, while having to end up with a balance budget after all the changes. It is anticipated that there will be significant changes within the version that the Committee will eventually concur on, and this will take weeks of work and negotiations. WH&LA, along with some of our tourism partners, has been meeting with members of the Committee to pursue an increase in the state Tourism Marketing Budget - at the very least reinstating the approximately $500,000/year reduction, but seeking any more funding possible since investing in tourism promotion provides a $6 for every $1 invested ROI. We are also emphasizing the importance of sufficient Transportation Funding, without specifying which of many suggested funding sources should be chosen, and we are recommending state support of the Wisconsin Sports and Entertainment Center provided local financial support is also invested. Many do not realize there is a significant direct cost to the state from any reduction in NBA player income tax revenues, and there are remaining debt obligations from the Bradley Center that would still need to be paid by the state if the Bucks move to another state in 2017 - something that is certain if there is no new structure. The question appears to be how the current funding proposal may be revised by the Committee before moving forward, as the current plan has been so controversial with the new estimates.
WH&LA Action Day April 22
It was recently shared that the Co-Chair of Joint Finance Committee State Rep. John Nygren will address Action Day attendees, and we are awaiting confirmation of other key leaders to do so as well. This is where you will receive materials on the latest status on the key issues moving evolving on a daily basis, and can ask any questions you may have on the issues AND have meetings arranged for you with your legislators or their key staff so that state legislators will better understand and support the importance of the lodging industry in their district. We can't express adequately how important it is for our industry to have strong representation at Action Day April 22, if you wish to see us have more success in promoting and protecting our industry. Sign up now at http://www.wisconsinlodging.org/actionday.
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