The Legislature's proposed abrogation of these contracts would result in serious financial and public health related consequences for the state. Without the contracts, the tribes could return to selling cigarettes and tobacco products without excise tax stamps affixed to the packages. The Department of Revenue would be forced to collect these revenues from each individual purchaser. Tracking every individual and collecting the legislatively mandated cigarette tax would be an enforcement nightmare. As a result, the short-term savings of $6 million estimated by the Legislature could become an on-going $18 million revenue loss to the state.
The Legislature's proposal also opens up the possibility of broader gray market sales or competitive tribal smoke shops. Not only does this undermine free market principles, it also creates an opportunity for unregulated sales of cigarettes to minors and young adults. This attempt to save a few million dollars could result in a public health disaster, reversing all of the recent gains in tobacco control efforts.
According to the Attorney General, the absence of enforcement brought on by this proposal would also open the state to the possibility of lawsuits from holders of tobacco bonds issued to securitize the state's share of the Master Settlement Agreement with the tobacco manufacturers. The Master Settlement Agreement requires that states maintain rigid enforcement mechanisms regarding the sale of cigarettes and tobacco products. The revenue estimates included in the agreement are predicated on certain assumptions that are tied to these enforcement measures. Reduced or nonexistent enforcement that would result from the abrogation of the excise tax agreement with the tribes would upset those assumptions and trigger immediate and massive lawsuits against the state for breach of contract.
This proposal puts Wisconsin at extreme risk. This is not the way to balance our budget. It's this type of short-sighted policy making that created the $3.2 billion deficit in the first place.
2. Bad Debt Deductions Against Cigarette and Tobacco Products Taxes
Sections 2057v, 2058f and 9445 (1b)
These provisions allow cigarette and tobacco product wholesalers to claim as a deduction against excise taxes an amount equal to the taxes portion of a bad debt deducted under federal tax law.
I am vetoing these provisions because the proposed language draft is sufficiently flawed as to be unworkable. The proposal cannot be applied consistently. The tobacco products tax statute is specific to distributors, while the cigarette tax may include permittees other than distributors. The proposal lacks definitions that cannot be
addressed by supplemental rules. Finally, it would be necessary to add personal liability to the cigarette and tobacco products tax statutes to allow the Department of Revenue to assess the debtor for the taxes owed to the state. The proposal is better considered as separate legislation rather than in the budget.
3. Joint Committee on Finance Approval of Lottery Privatization
Sections 2630g, 2630h and 2631
These provisions require that privatization of the lottery can proceed only if the Joint Committee on Finance approves the contracts acting under s.
13.10.
I am vetoing these provisions since such detailed contract review is an unwarranted intrusion into the daily management of a state agency. They are also completely unnecessary. Section
565.25 (1m) of the statutes already provides standards for any potential private contract the lottery would consider. The statutes also specify requirements for contractor financial responsibility and prohibit conflicts of interest. Moreover, any contract for privatizing the lottery would have to address transition to operation of the lottery by a private entity.
State of Wisconsin
Office of the Governor
July 24, 2003
The Honorable, The Senate:
I am vetoing Senate Bill 206 in its entirety. This bill is a trailer bill to Senate Bill 44 (the 2003-05 biennial budget bill) and makes several modifications to the municipal levy limits proposed under Senate Bill 44. The modifications include exempting from the limits any levy imposed by the City of Milwaukee on behalf of Milwaukee Public Schools; authorizing cities and villages to increase their levies for property newly annexed from a town only if the city or village has provided services for a fee to that property for at least 10 years; and authorizing towns with populations below 2,000 to exceed the levy limits by adopting a resolution to that effect at a special town meeting.
S327
After the Legislature passed
Senate Bill 44, it immediately passed this bill to address problems with its levy limit proposal in that bill. I expect that had I not vetoed the levy limit proposal on
Senate Bill 44 that
Senate Bill 206 would have been the first of many similar bills to address issues not considered by the Legislature when it crafted its levy limit proposal in
Senate Bill 44. I object to this bill because it is indicative of the numerous problems associated with the levy limit I vetoed in
Senate Bill 44.
Sincerely,
Jim Doyle
Governor
State of Wisconsin
July 24, 2003
The Honorable, The Senate:
Pursuant to Senate Rule
20 (2)(a) and
(b) I have appointed Senator Leibham to the Joint Committee on Finance and removed Senator Fitzgerald.
With regard to members of the minority party, appointments are made based on the nominations of that caucus.
Sincerely,
Mary E. Panzer
Senate Majority Leader
State of Wisconsin
July 24, 2003
The Honorable, The Senate:
Pursuant to Senate Rule
20 (2)(a) and
(b) I have appointed Senator Stepp to the Joint Committee on Finance and removed Senator Welch.
With regard to members of the minority party, appointments are made based on the nominations of that caucus.
Sincerely,
Mary E. Panzer
Senate Majority Leader
State of Wisconsin
July 25, 2003
The Honorable, The Senate:
I have appointed the following Republican Senators to the Special Select Committee on Job Creation:
Senator Kanavas - Co-chair
Senator Stepp - Co-chair
Senator Leibham
Please let me know if you have any questions.
Sincerely,
Mary E. Panzer
Senate Majority Leader
State of Wisconsin
July 28, 2003
The Honorable, The Senate:
Pursuant to Senate Rule
20 (2)(a) and
(b) I have appointed Senator Carpenter to the Joint Committee on Finance and removed Senator Moore.
With regard to members of the minority party, appointments are made based on the nominations of that caucus.
Sincerely,
Mary E. Panzer
Senate Majority Leader
State of Wisconsin
July 28, 2003
The Honorable, The Senate:
Pursuant to Senate Rule
20 (2)(a) and
(b) I have appointed Senator Jauch to the Joint Committee on Finance and removed Senator Decker.
With regard to members of the minority party, appointments are made based on the nominations of that caucus.
Sincerely,
Mary E. Panzer
Senate Majority Leader
State of Wisconsin
July 29, 2003
The Honorable, The Senate:
In accordance with Senate Rule
21, I appoint Senators Chvala and Jauch to the Senate Select Committee on Job Creation:
Please let me know if you have any questions.
Sincerely,
Mary E. Panzer
Senate Majority Leader
State of Wisconsin
Office of the Secretary of State
To the Honorable, the Senate:
Sincerely,
Douglas La follette
Secretary of State
State of Wisconsin
Office of the Secretary of State
To the Honorable, the Senate:
Sincerely,
Douglas La follette
Secretary of State
State of Wisconsin
Ethics Board
July 29, 2003
To the Honorable the Senate:
The following lobbyists have been authorized to act on behalf of the organizations set opposite their names.
For more detailed information about these lobbyists and organizations and a complete list of organizations and people authorized to lobby the 2001 session of the legislature, visit the Ethics Board's web site at
http://ethics.state.wi.us
Becker, Dismas Wisconsin Coalition of Marriage & Family Therapists, Prof. Counselors & Soc Workers
Kussow, Michelle America Online Inc
Lonergan, Sandra WEA Insurance Corporation
McIntosh, Forbes Community Alliance of Providers of Wisconsin (CAPOW)
