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.
g. Intergovernmental Cooperation Element. Specify that this element includes a map and a statement of objectives, policies, goals and programs for joint planning and decision making with other jurisdictions, including school districts and adjacent local governmental units, for siting and building public facilities and sharing public services. Require the statement to analyze the relationship of the local governmental unit to school districts and adjacent local governmental units, and to the region, the state and other governmental units. Require the statement to incorporate any plans or agreements to which the local governmental unit is a party under existing boundary change, intergovernmental cooperation or regional planning provisions. Require the statement to identify existing or potential conflicts between the local governmental unit and school districts and adjacent local governmental units and describe processes to resolve such conflicts.
h. Land-Use Element. Specify that this element includes a map and a statement of objectives, policies, goals and programs to guide the future development and redevelopment of public and private property. Require the statement to contain a listing of the amount, type, intensity and net density of existing uses of land in the local governmental unit, such as agricultural, residential, commercial, industrial and other public and private uses. Require the statement to analyze trends in the supply, demand and price of land, opportunities for redevelopment and existing and potential land-use conflicts. Require the statement to contain projections, based on the background information specified in the issues and opportunities element, for 20 years with detailed maps, in 5-year increments, of future residential, agricultural, commercial and industrial land uses including the assumptions of net densities or other spatial assumptions upon which the projections are based. Require the statement to include a series of maps showing current and future land uses. Require these maps to indicate productive agricultural soils, natural limitations for building site development, floodplains, wetlands and other environmentally sensitive lands, the boundaries of areas to which services of public utilities and community facilities, as identified in the utilities and community facilities element, will be provided in the future, consistent with that element's timetable, and the general location of future land uses by net density or other classifications.
i. Implementation Element. Specify that this element includes a statement of programs and specific actions to be completed in a stated sequence. Require the statement to include proposed changes to any applicable zoning ordinances, official maps, sign regulations, erosion and stormwater control ordinances, historic preservation ordinances, site plan regulations, design review ordinances, building codes, mechanical codes, housing codes, sanitary codes or subdivision ordinances, to implement the objectives, policies, plans and programs contained in the preceding elements. Require the statement to describe how each of the elements of the comprehensive plan will be integrated and made consistent with the other elements of the comprehensive plan. Require the statement to include a mechanism to measure the local governmental unit's progress toward achieving all aspects of the comprehensive plan. Require the statement to include a process for updating the comprehensive plan and specify that comprehensive plans developed under these provisions must be updated no less often than once every 10 years.
Replace the current lists of items that may be included in county development plans, master plans developed by city, village or town plan commissions and master plans prepared by regional planning commissions with requirements that such plans contain, at a minimum, the elements enumerated for inclusion in a comprehensive plan.
Modify current law regarding the adoption of master plans by city, village or town plan commissions and regional planning commissions by replacing provisions that allow the adoption of plans in whole or by functional subdivision with provisions that allow the adoption of plans in whole or part by element, as enumerated under the provision for comprehensive plans
Modify current law provisions regarding the general responsibilities of regional planning commissions to specify that plans, and resolutions related to those plans, that are for the physical, social and economic development of the region must be consistent with the elements required for inclusion in a comprehensive plan.
These provisions would become effective upon passage of the bill, but would only apply when existing plans are amended or new plans are created.
[Bill Sections: 1578, 1579, 1590, 1591, 1606 and 1644 thru 1646]
5. DANE COUNTY REGIONAL PLANNING COMMISSION
Governor: Specify that the commission members of the Dane County Regional Planning Commission who are in office on the 30th day after the bill's general effective date cannot remain in office beyond that date unless they are reappointed by the Governor. Provide that, beginning 31 days after the bill's general effective date, the Dane County Regional Planning Commission shall consist of 11 members appointed by the Governor. Specify that the Governor's appointments to the commission must be made either from lists of individuals submitted by local government officials and associations or from a list of five individuals with experience in land use planning, selected by the Governor. Establish the Commission's membership as follows, except that members can be appointed from the Governor's list of five individuals for any of these categories:
a. Two members appointed from a list of at least four individuals submitted by an association representing towns that was in existence on January 1, 1999, provided that one member must be a town resident in eastern Dane County and one member must be a town resident in western Dane County;
b. Two members appointed from a list of at least four individuals submitted jointly by an association representing villages and an association representing third and fourth class cities, both of which were in existence on January 1, 1999;
c. Two members appointed from a list of at least four individuals submitted by the mayor of the City of Madison; and
d. Five members from a list of at least eight Dane County board supervisors submitted by the Dane County executive, provided that at least two of these members must represent towns and no more than two of these members may represent districts that are wholly or partially in the City of Madison, and provided that at least two of these members must represent districts in eastern Dane County and at least two of these members must represent districts in western Dane County.
Require the Secretary of DOA to determine the border between the eastern and western halves of Dane County for the purposes of implementing this provision.
Provide that the Dane County Regional Planning Commission shall be dissolved on December 31, 2001. Require the Commission's unexpended funds be used to retire the Commission's outstanding debt, if any, and specify that any remaining funds be returned to the municipalities or county that supplied them. Provide that any remaining debt shall become an obligation of Dane County.
Require the Dane County Board and the board of any county that is adjacent to Dane County and that is not in a regional planning commission to vote by July 1, 2001, on whether to participate in a newly-organized regional planning commission. Require the new regional planning commission to be created on January 1, 2002, if two-thirds of the designated county boards vote to participate.
Specify that any regional planning commission created after December 31, 2001, that contains a second class city (this includes the City of Madison) must consist of:
a. One member appointed by the county board of each participating county;
b. Two members, appointed by the Governor, from each participating county; and
c. The Secretary of the Department of Commerce, or a designee, who shall serve as a nonvoting member.
Prohibit the creation of any regional planning commission that consists of a single county after December 31, 2001.
[Bill Sections: 1641 thru 1643 and 9158(1)]
6. INCORPORATIONS UNDER A COOPERATIVE PLAN FOR BOUNDARY CHANGES
Governor: Modify state law governing cooperative plans for municipal boundary changes to allow all, or part, of a town to become incorporated as a village or city under those procedures. Exclude such incorporations from the standards regarding area, population and density otherwise required by the courts when considering proposals to incorporate. Exclude such incorporations from the standards regarding characteristics of the territory proposed to be incorporated, including territory beyond the core area, otherwise required by DOA when considering proposals to incorporate. Require DOA to determine whether an incorporation under the proposed provisions is in the public interest. Allow DOA to consider current standards for reviewing incorporations in making this determination.
Require cooperative plans that include proposed incorporations to specify the date on which the incorporation shall take effect and the boundary for the territory to be incorporated if the incorporation does not include the entire town.
Specify that towns seeking to incorporate under the proposed procedures must satisfy the current law requirements regarding incorporation relative to petitions, public notices, hearings and judicial review before a joint public hearing can be held on the cooperative plan.
Require DOA to consider the effect an incorporation would have on any portion of the town not included in the territory to be incorporated and on the other parties to the plan in the Department's review of the plan. Specify that cooperative plans containing incorporations would not become effective until the incorporation has been approved through referendum, as required under current law. Require cooperative plans including incorporations to include a contingency plan, in the event the referendum is not approved, and specify that the contingent cooperative plan shall take effect if the plan is defeated in the referendum. These provisions would become effective upon passage of the bill.
