1. Business and professional services;
2. Data processing;
3. Courier and messenger services;
4. Credit-related activities;
5. Consumer services;
6. Real estate-related services, including real estate brokerage services;
7. Insurance and related services, other than insurance underwriting;
8. Securities brokerage;
9. Investment advice;
10. Securities and bond underwriting;
11. Mutual fund activities;
12. Financial consulting;
13. Tax planning and preparation;
14. Community development and charitable activities;
15. Debt cancellation contracts;
16. Any activities reasonably related or incident to activities on the list above;
17. An activity that is authorized by statute or regulation for financial institutions to engage in as of the effective date of this provision (the first day of the third month beginning after publication of the bill); and
18. An activity permitted under the Bank Holding Company Act.
In addition, DOB would be authorized to expand the list of activities reasonably related or incident to the purposes of a universal bank. Any additional activity approved by the Division would be authorized for all universal banks.
A universal bank would be required to give 60 days' prior written notice to DOB of the universal bank's intention to engage in an activity under these provisions.
Standards for Denial. DOB would be permitted to deny the authority of a universal bank to engage in an activity under these provisions, other than the first 16 activities listed above, if the Division determined any of the following: (a) that the activity was not an activity reasonably related or incident to the purposes of a universal bank; (b) that the financial institution was not well-capitalized or adequately capitalized; (c) that the financial institution was the subject of an enforcement action; or (d) that the financial institution did not have satisfactory management expertise for the proposed activity.
Insurance Intermediation. A universal bank, or an officer or salaried employe of a universal bank, would be permitted to obtain a license as an insurance intermediary, if otherwise qualified. A universal bank could not, directly or indirectly through a subsidiary, engage in the business of underwriting insurance.
Activities Approved by DOB. A universal bank would be authorized to engage in any other activity that was approved by rule of DOB. In addition, a universal bank could engage in activities under these provisions, directly or indirectly through a subsidiary, unless the Division determined that an activity had to be conducted through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.
Activities Provided Through a Subsidiary. The amount of the investment in any one subsidiary that engaged in an activity under these provisions could not exceed 20% of capital or a higher percentage if approved by DOB. The aggregate investment in all subsidiaries that engaged in an activity under this provision could not exceed 50% of capital or a higher percentage authorized by the Division. A subsidiary that engaged in an activity under these provisions could be owned jointly, with one or more other financial institutions, individuals or entities.
Trust Powers
Subject to rules of DOB, a universal bank would be permitted to exercise trust powers in accordance with such authority granted by the statutes to state banks.
Rule-Making Authority
The bill would require DOB to use the emergency rule making procedures to promulgate rules for the period before permanent rules became effective. However, DOB would not be required to provide evidence of an emergency.
Effective Date
These provisions would take effect on the first day of the third month beginning after publication of the bill.
[Bill Sections: 2343, 2346, 9119(1) and 9419(1)]
GENERAL PROVISIONS
Budget Change Items
1. TOBACCO SETTLEMENT FUNDS
GPR-REV
1998-99 $49,728,900
1999-00 136,839,600
2000-01 152,068,600
Total $338,637,100
Governor: On November 23, 1998, Wisconsin and 45 other states signed a settlement agreement with the tobacco industry. This agreement settled a lawsuit that Wisconsin filed against the tobacco industry on February 5, 1997. Under the agreement, Wisconsin is estimated to receive $338.6 million by June 30, 2001 (through the year 2025, Wisconsin is estimated to receive $5.9 billion). In addition, legal fees for Department of Justice and private attorneys involved with the suit will be paid from separate funds. Initial payments will be disbursed to Wisconsin the earlier of June 30, 2000, or once 80 percent of the 46 states have obtained state-specific finality and those states represent 80 percent of the payments. State-specific finality occurs when a state's case has achieved an official court dismissal and the time for appeal has expired. Wisconsin's suit was officially dismissed on December 4, 1998, and the time for appeal has expired. Therefore, Wisconsin has achieved state-specific finality. However, recent appeals in New York, New Jersey and California make it likely that the initial payment will not be made before June 30, 2000.
The bill assumes estimated revenues of $338.6 million in tobacco settlement monies would be deposited to the general fund as follows: (a) $49.7 million in 1998-99; (b) $136.8 million in 1999-00; and (c) $152.1 million in 2000-01. These amounts are reflected in the bill's general fund condition statement. Estimated 1998-99 revenues are reflected in the opening balance, while 1999-00 and 2000-01 revenues are reflected under estimated departmental revenues.
The bill is silent as to any directed use of the $338.6 million in tobacco settlement monies. The executive budget documents, however, do indicate that the "funds will be used for a variety of state health programs in the 1999-2001 budget and to provide a partial reimbursement to the general fund and state taxpayers for general purpose taxes spent on such costs in previous years." Additionally, executive budget documents indicate that tobacco settlement monies would be used for the following initiatives included in the budget: (a) $1,000,000 annually to the University of Wisconsin to advance the work of the UW Center for Tobacco Research and Intervention in developing new educational programs to discourage tobacco use and expanding smoking cessation programs throughout Wisconsin; (b) $500,000 annually to the Medical College of Wisconsin to expand existing programs for research efforts on cancer and cardiovascular disease, to translate research findings into medical practice for medical students and residents and to increase community outreach to providers and clinics on smoking cessation programs and techniques; (c) $500,000 annually to the Department of Public Instruction for grants of up to $10,000 to schools for smoking prevention activities in grades kindergarten through eighth grade; (d) $500,000 annually to the Department of Health and Family Services to establish a smoking prevention program for women and children as part of the women's health program; and (e) $200,000 in 1999-00 to the Office of the Commissioner of Insurance to issue a grant to an entity that would develop a plan for a small employer purchasing pool. These are summarized in the following table. Summaries for these initiatives can be found under the respective agency summaries.
1999-00 2000-01
University of Wisconsin $1,000,000 $1,000,000
Medical College of Wisconsin 500,000 500,000
Public Instruction 500,000 500,000
Health and Family Services 500,000 500,000
Office of the Commissioner of Insurance 200,000 0
Total $2,700,000 $2,500,000
While not identified in the executive budget documents, the Governor's budget message indicates that a substantial portion of the tobacco settlement money would be used for BadgerCare and Family Care. The bill provides $32,818,700 GPR for BadgerCare and $11,256,400 GPR (net) for Family Care.
[Bill Sections: 170, 250, 255, 2048 and 9154(2)]
2. DRAFTING INSTRUCTIONS RE: LEGISLATION FOR COMPLIANCE WITH RESTRICTIONS ON MINORS ACCESS TO TOBACCO PRODUCTS
Governor: Create session law language, to be retroactively effective on February 28, 1999, requiring the Department of Administration (DOA) to submit instructions to the Legislative Reference Bureau by March 1, 1999, to draft legislation authorizing the development of a statewide protocol for licensing authorities and law enforcement agencies in conducting compliance surveys to determine the prevalence of illegal retail sales of tobacco products to underage individuals. Require DOA to submit the proposed legislation to the Co-chairs of the Joint Committee on Finance no later than April 1, 1999.
Under federal law, states are required to take certain steps to reduce the sale of tobacco products to minors, including performing random, unannounced inspections of licensed tobacco vendors to determine the percentage of vendors who sell to minors, and to reduce the percentage of vendors who sell to minors to less than 20% by the year 2001. The U.S. Department of Health and Human Services is authorized to withhold 40% of a state's substance abuse prevention and treatment (SAPT) block grant if a state fails to comply with this requirement.
As administrator of the SAPT block grant, DHFS has responsibility for conducting a statewide retail tobacco "compliance check." This check was first completed in 1997 and resulted in a 22.6% inspection failure rate (the rate at which merchants sold to minors).
[Bill Sections: 9101(16) and 9401(6)]
3. DRAFTING INSTRUCTIONS RE: LEGISLATION FOR A CULTURAL ARTS AUTHORITY
Governor: Require the Legislative Reference Bureau (LRB) to prepare legislation authorizing the creation of cultural arts authorities in cities with a population of at least 150,000, based on instructions provided by the Department of Administration (DOA). Specify that DOA would have to submit final instructions to the LRB not later than March 1, 1999. Require that the Secretary of DOA submit the proposed legislation to the Co-chairs of the Joint Committee on Finance not later than April 1, 1999. Specify that this provision would take effect on February 28, 1999.
[Bill Sections: 9158(3) and 9458(1)]
4. COMPREHENSIVE PLANNING
Governor: Create a provision defining comprehensive plan as a county development plan, city, village or town master plan or regional planning commission master plan. Specify that a comprehensive plan must include the following elements: (a) issues and opportunities; (b) housing; (c) transportation; (d) utilities and community facilities; (e) agricultural, natural and cultural resources; (f) economic development; (g) intergovernmental cooperation; (h) land use; and (i) implementation. Define local governmental unit for the purpose of comprehensive plans as a city, village, town, county or regional planning commission.
a. Issues and Opportunities Element. Specify that this element includes background information on the local governmental unit and a statement of objectives, policies, goals and programs of the local governmental unit to guide the future growth and development of the local governmental unit over a 20-year planning period. Define background information to include population, household and employment forecasts that the local governmental unit uses in developing its plan, and demographic trends, age distribution, educational levels, income levels and employment characteristics that exist within the local governmental unit. Authorize the required statement to include similar elements related to federal and state programs and background information on nearby local governmental units that affect the local governmental unit preparing the plan.
b. Housing Element. Specify that this element includes a statement of objectives, policies, goals and programs of the local governmental unit to provide an adequate housing supply that meets existing and forecasted housing demand in the local governmental unit and in nearby local governmental units. Require the statement to contain a map and to assess the age, structural, value and occupancy characteristics of the local governmental unit's housing stock. Require the statement to identify specific policies and programs that promote the development of housing for residents of the local governmental unit with all income levels and with various needs. Require the statement to include policies and programs to maintain or rehabilitate the local governmental unit's existing housing stock.
c. Transportation Element. Specify that this element includes a map and a statement of objectives, policies, goals and programs to guide the future development of transportation infrastructure and various modes of transportation, including public transportation, transportation systems for persons with disabilities, bicycles, walking, railroads, air transportation, trucking and water transportation. Require the statement to compare the local governmental unit's objectives, policies, goals and programs to state and regional transportation plans. Require the statement to identify highways and streets within the local governmental unit by type and identify applicable transportation plans, including transportation corridor plans, county highway functional and jurisdictional studies, urban area and rural area transportation plans, airport master plans and rail plans, that apply in the local governmental unit.
d. Utilities and Community Facilities Element. Specify that this element includes a map and a statement of objectives, policies, goals and programs to guide the future development of utilities and community facilities in the local governmental unit. Enumerate sanitary sewer service, stormwater management, water supply, solid waste disposal, on-site wastewater treatment technologies, recycling facilities, parks, telecommunications facilities, power-generating plants and transmission lines, cemeteries, health care facilities, child care facilities and other public facilities, such as police, fire and rescue facilities, libraries, schools and other governmental facilities as types of utilities and community facilities to be included in this element. Require the statement to describe the use and capacity of existing public utilities and community facilities that serve the local governmental unit. Require the statement to include an approximate timetable that forecasts the need in the local governmental unit to expand or rehabilitate existing utilities and facilities or to create new utilities and facilities. Require the statement to assess future needs for government services in the local governmental unit that are related to such utilities and facilities.
e. Agricultural, Natural and Cultural Resources Element. Specify that this element includes a map and a statement of objectives, policies, goals and programs for conserving natural resources and promoting their effective management. Enumerate groundwater, forests, productive agricultural areas, environmentally sensitive areas, threatened and endangered species, stream corridors, surface water, floodplains, wetlands, wildlife habitat, metallic and nonmetallic mineral resources, parks, open spaces, historic and cultural resources, aesthetic resources, recreational resources and other natural resources as types of natural resources to be included.
f. Economic Development Element. Specify that this element includes a map and a statement of objectives, policies, goals and programs to promote the stabilization, retention or expansion of the economic base and quality employment opportunities in the local governmental unit. Require the statement to include an analysis of the labor force and economic base of the local governmental unit. Require the statement to assess categories or particular types of new businesses and industries that are desired by the local governmental unit. Require the statement to assess the local governmental unit's strengths and weaknesses with respect to attracting and retaining businesses and industries, and to designate an adequate number of sites for such businesses and industries. Require the statement to evaluate and promote the use of environmentally contaminated sites for commercial or industrial uses. Require the statement to identify county, regional and state economic development programs that apply to the local governmental unit.
