SEN. LEMAHIEU AND REP. STEFFEN INTRODUCING BILL EXEMPTING MUNICIPALITIES FROM FAIR DEALERSHIP LAW
Sen. LeMahieu (R-Oostburg) and Rep. Steffen (R-Howard) are seeking co-sponsors for LRB-1809, a bill they are introducing at the League's request exempting municipalities from the Fair Dealership Law.

In June 2017 the Wisconsin Supreme Court reversed the decisions of two lower courts and ruled for the first time that a municipality's contractual relationship with a private contractor is subject to the Wisconsin Fair Dealership Law, which governs contractual obligations between those who sell goods or services and those who benefit from the sales. Benson v. City of Madison, 2017 WI 65. The ruling, the first of its kind in any state, created new and substantial liability risks for municipalities and their residents given the large number of activities performed by private contractors for Wisconsin cities and villages. In a 5-2 decision, the Court concluded that four golf professionals could maintain their lawsuit against the City of Madison for $1.8 million in damages over claims their contracts with the city were terminated in 2012 without good cause in violation of the Fair Dealership Law.

The Wisconsin Fair Dealership Law, like similar laws across the country, protects the economic interests of "dealers" (e.g., car dealers) against unfair treatment or practices by "grantors," (e.g., car manufacturers). The law applies to arrangements in which there is a "community of interest" between the two parties, such as a shared financial interest or coordination of activities. Prior to this decision, the law had never been extended to relationships between private contractors and municipalities.

This decision negatively impacts the ability of all cities, villages, towns and counties and perhaps even the state, to privatize service delivery and to make decisions to end contractual relationships based on efficiencies and cost savings that benefit taxpayers.  

This bill reverses the Benson decision by exempting the state and local governments from the Fair Dealership Law.

Action Step: Contact your state legislators and urge them to sign on to LRB-1809 being introduced by Sen. LaMahieu and Rep. Steffen. 
LEGISLATORS SIGNING ON TO DARK STORE/WALGREENS BILL
Thanks to your emails and phone calls, in less than one week the following legislators signed on as co-authors or co-sponsors of the dark store/ Walgreens bill being introduced by Rep. Rob Brooks and Senators Stroebel and Roth:

Representatives: David Steffen, Paul Tittl, James Edming, Rick Gundrum, Samantha Kerkman, Scott Krug, Jeff Mursau, Romaine Quinn, Jessie Rodriguez, Michael Schraa, and Gary Tauchen

Senators: Kathy Bernier, Howard Marklein, Luther Olsen, and Jerry Petrowski. 

We anticipate many more legislators will be signing on before the deadline of March 1. If your legislators are listed above, please be sure to thank them. If your legislator is not listed above and you have not yet communicated with him or her, please send an e-mail asking them to sign on to LRB 1665, the dark store/ Walgreens bill.

We have prepared an email for you to send to your legislators using our Voter Voice system. Just click on the button below to send emails to your legislators urging them to sign on to the bill closing the dark store and  Walgreens  loopholes.
PUBLIC SERVICE COMMISSION DISCUSSES LONG PENDING REWRITE OF WATER UTILITY RULE
According to a report from Lawrie Kobza at Municipal Environmental Group -- Water Division, the Public Service Commission (PSC) met last Thursday and discussed the long pending proposed revision of PSC 185, regulating municipal water utility operations. The commission did not approve the rule and send it to the Legislature. Instead the commission tentatively approved some sections of the proposed rule, revised a few others, and asked for more input on some sections. PSC staff is preparing a memo documenting the Commission’s discussion. Municipal water utilities and other stakeholders will be asked to provide written comments to the Commission within a relatively short time (about 30 days).

The Commission directed staff to obtain stakeholder comment on a number of issues, and they also directed staff to obtain more information on the requirements of other agencies on certain issues (like required depth of water mains). Areas where PSC staff is to provide another opportunity for comment or obtain more information include thawing of frozen laterals (but the Commission indicated they were very close to accepting PSC staff’s proposed language).

Read the League's 2017 comments on the proposed rule here (scroll down).

Read PSC staff's memo to the Commission summarizing public comments on the proposed rule here.

Subscribe to docket number 1-AC-233  here  for updates on the rulemaking. 
GOVERNOR TO INTRODUCE BUDGET ON THURSDAY
Governor Evers is set to introduce his proposed state budget on February 28. He'll also deliver a state budget address to both houses of the Legislature on February 28.

Based on past statements the Governor has made we anticipate his budget plan will include:

  • More flexible levy limits
  • An increase in general transportation aids for municipalities
  • language closing the dark store and Walgreens tax loopholes
ASSEMBLY COMMITTEE SEEKS MUNICIPALITIES TO TESTIFY ON STRATEGIES FOR CREATING POSITIVE FIRST IMPRESSIONS
Rep. Scott Allen, chair of the Assembly Community Development Committee, seeks municipal officials and/or staff interested in presenting to the committee in April about landscaping, branding, streetscape and other methods their community uses to create a positive first impression for visitors.

For more information or to be considered for presenting to the committee, contact Curt Witynski.
A BIG THANK YOU TO LOBBY DAY PARTICIPANTS
Thanks to the League's Lobby Team for advocating on behalf of their municipalities at the League's first Lobby Day of the session on February 20. Despite the challenging weather, we had a fairly good turnout. Also, many who were unable to travel to the Capitol, called their legislators of rescheduled to an in-district meeting.

Lobby Day photos are here on the League's Facebook page (scroll down.)

Save the Date for the next Lobby Day and Legislative Luncheon on May 22.
JOIN US TONIGHT IN WAUPACA AND LEARN MORE ABOUT THE LEAGUE'S LEGISLATIVE AGENDA
Municipal officials and staff are invited to the PAR 4 Resort in Waupaca from 5:30-7:00 tonight, February 25, to interact with League staff and learn more about the municipal agenda for the upcoming legislative session.

Please join us if you are able. There is no cost and no RSVP necessary. A light dinner will be served. For more information contact Gail Sumi.

Please share our 2019-2020 Legislative Agenda with your state legislators. A copy of the League's agenda is posted on our web site here.
IN THE NEWS 

"Dollars and Sense: Is it time for a new municipal financing framework in Wisconsin?"
A Wisconsin Policy Forum (WPF) study, released Feb. 21, finds that:
  • In 2015, Wisconsin municipalities received 42.2% of their revenues from the property tax, but only 1.6% from sales and income taxes combined. Nationally, on average, municipalities received 23.3% of their revenues from the property tax with an additional 21.3% from sales and income taxes.
  • This increased dependence on the property tax is the result, in part, of state aid failing to keep pace with inflation, according to the report. From 1975 to 1997, state aid provided a larger share of municipal revenues here than property taxes. Since then, the situation has reversed, with property taxes in 2015 accounting for more than twice as much of local revenue as state aids.

The Wisconsin Policy Forum conducted its research in collaboration with the League of Wisconsin Municipalities, Wisconsin Realtors Association and the Greater Milwaukee Committee. 

Copies of the Executive Summary and Full Report are on the League's website here.


League’s Statement on “Dollars and Sense” Report:
Is it time for a more balanced way to pay for local government? The League believes the answer is an emphatic YES! Wisconsin’s over-reliance on the property tax is not good for our citizens, our state or our economy. It’s time to begin a conversation that will lead us into a new future where citizens and businesses thrive with the
support of balanced, frugal, and sustainable local government services.

The Wisconsin Policy Forum “Dollars and Sense” report shows that no other state in the Midwest and few in the country rely as heavily and as exclusively on the property tax as Wisconsin. Most states balance their local government finances with local sales taxes or other sources. Because Wisconsin doesn’t do that, our property
taxes are high while our sales tax is low. Looked at another way, homeowners and other property tax payers pay more for local services while visitors and commuters pay much less.

Wisconsin’s tax history is one of repeated attempts to lower property taxes, all of which eventually fail for the same reason: we keep trying to address the symptom (high property taxes) while ignoring the obvious cause. The cause is that we expect the property tax to do too much. Wisconsin will always have high property taxes
compared to other states if we continue to expect property taxes to pay the lion’s share of financing for local roads, schools, police, fire, ambulance, parks and the other basic governmental services. No other state does it this way.

Read the League's Statement here as a pdf .
RECENTLY INTRODUCED BILLS

No new bills affecting municipalities were introduced last week.
PUBLIC HEARINGS THIS WEEK

No bills affecting municipalities were introduced last week.