The following bills are to be hand delivered to the Governor's office immediately after the cover sheets of the bills are signed by legislative leaders: Assembly Bill 23, Assembly Bill 24, Assembly Bill 232, Assembly Bill 233, Assembly Bill 234, Assembly Bill 235, Assembly Bill 236, Assembly Bill 237, Assembly Bill 238, Assembly Bill 239, Assembly Bill 240, Assembly Bill 241, and Assembly Bill 243.
The bills reflect the consensus of the representatives and senators of the state of Wisconsin. Thank you for delivering the pieces of legislation in a prompt manner.
Sincerely,
ROBIN J. VOS
Assembly Speaker
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Chief Clerk Reports
The Chief Clerk records:
Presented to the Governor on Wednesday, April 21, pursuant to Assembly Rule 23 (4). EDWARD A. BLAZEL
Assembly Chief Clerk
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Governor’s Veto Message
April 22, 2021
To the Honorable Members of the Assembly:
The following bills, originating in the Assembly, have been vetoed in their entirety, and were returned to their house of origin, together with the objections in writing:
Bill Number Date of Veto
Assembly Bill 232 April 22, 2021
Assembly Bill 233 April 22, 2021
Assembly Bill 234 April 22, 2021
Assembly Bill 235 April 22, 2021
Assembly Bill 236 April 22, 2021
Assembly Bill 237 April 22, 2021
Assembly Bill 238 April 22, 2021
Assembly Bill 239 April 22, 2021
Assembly Bill 240 April 22, 2021
Assembly Bill 241 April 22, 2021
Assembly Bill 243 April 22, 2021
hist132579I am vetoing Assembly Bill 232 in its entirety. This bill directs the Department of Revenue to coordinate with counties and municipalities to provide payments from the state’s allocation of the American Rescue Plan Act of 2021 (ARPA) to property taxpayers equal to approximately 10 percent of the amount of the net property taxes levied on each taxpayer's real property in 2020. The bill requires the Governor to allocate $1,067,824,380 from the state allocation of the American Rescue Plan Act for these payments and an additional $20,000,000 for administrative costs incurred by the Department of Revenue and local governments.
While I am interested in opportunities to provide meaningful property tax relief to Wisconsinites across our state, I am vetoing this bill for several reasons.
First, I object because the use of ARPA funds for the type of property tax relief proposed in this bill is almost certainly prohibited under the language of Section 9901 of ARPA, which specifies that federal funds allocated to a state under ARPA cannot be used to directly or indirectly offset any tax. This bill effectively creates a tax rebate, which is expressly prohibited under Section 9901. While the federal government has not issued final guidance regarding the prohibition of such tax relief payments, the plain language of ARPA prohibits the payments outlined in AB 232. If this bill is enacted and the funds spent as directed, the state may be required to repay over $1 billion to the federal government.
Second, I object to the bill because it is poorly targeted. This bill disburses federal APRA funds as a 10 percent tax rebate to all property owners. It makes no payments to renters and makes no effort to link payments to impacts of the pandemic.
Third, I object to the bill because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor to oversee use of federal funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law. Using this authority, I have already announced my plans to invest the new federal funds under ARPA to various economic recovery and well-being, infrastructure, and pandemic response initiatives.
hist132580I am vetoing Assembly Bill 233 in its entirety. This bill requires the Governor to allocate $200 million of federal funds received under the American Rescue Plan Act of 2021 (ARPA) for the purpose of providing grants to qualifying businesses. Qualifying businesses under the bill are those which hold a valid business tax registration certificate, had total annual sales of less than $7 million, suffered economic damage resulting from the COVID-19 global pandemic, is not on the list of the Department of Revenue's list of delinquent taxpayers and it is not on the Department of Transportation's list of debarred contractors. The bill specifies that before the department may accept applications for grants under the program, the department must submit a plan for the implementation of the program to the Joint Committee on Finance. The cochairs of the Joint Committee on Finance may then either direct the department to implement the plan or call a meeting of the full committee within 14 days of the plan's receipt to either approve the plan or modify the plan.
I object to this bill and am vetoing it because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. Using this authority, I have already announced my intent to direct $600 million of the new federal funds under ARPA to provide additional assistance to small business, and this bill would set up an additional process that would slow down the ability to get a smaller amount of help to Wisconsin small businesses. hist132581I am vetoing Assembly Bill 234 in its entirety. This bill requires the Department of Tourism to award $50 million in grants from funds allocated to the state under the federal American Rescue Plan Act (ARPA) of 2021. Grants would be for nonprofit organizations that promote and develop tourism in the state, and would support the ability of these organizations to remain operational after COVID-19 pandemic challenges. This bill also requires the department to award $25 million in grants from ARPA to organizations that own or operate amusement and theme parks to aid in their recovery from the COVID-19 pandemic.
I object to the bill and am vetoing it because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor to oversee use of federal funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law. Using this authority, I have already announced my intent to direct $50 million of the new federal funds under ARPA to provide additional assistance to the tourism industry.
hist132582I am vetoing Assembly Bill 235 in its entirety. This bill requires the Governor to allocate $100,000,000 of funds under the American Rescue Plan Act of 2021 (ARPA) for the Wisconsin Economic Development Corporation (WEDC) and Department of Revenue (DOR) for rural economic development and farm support programs. I welcome support for our farmers, agricultural industries, and rural communities, which is why I previously called a special session of the Wisconsin State Legislature to address the pressing issues facing our state and to bolster rural prosperity. Unfortunately, none of those proposals ever reached my desk last session. The $100,000,000 would be divided between $50,000,000 to WEDC for various rural economic development programs, including entrepreneurial start-up efforts in rural counties, and $50,000,000 for farm support grants administered by DOR in consultation with the Department of Agriculture, Trade and Consumer Protection.
I object to this bill and am vetoing it because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor under Section 16.54 of the Wisconsin Statutes to oversee use of federal funds and will allocate these funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law. Using this authority, I have announced that I will use ARPA funds to advance several economic assistance programs, including $600 million in assistance to small businesses, which will benefit all regions of the state, including our rural communities and areas. Further, I look forward to working with the Legislature to pass my budget proposal, which includes several initiatives which build on the proposals from my previously called special session as well as proposals supported by my Blue Ribbon Commission on Rural Prosperity.
hist132583I am vetoing Assembly Bill 236 in its entirety. This bill requires the Governor to direct $150 million from the moneys received under the federal American Rescue Plan Act of 2021 (ARPA) for the Department of Health Services to distribute to nursing homes and assisted living facilities that apply for a onetime payment. To receive a payment, the nursing home or assisted living facility must ensure that no less than 50 percent of the payment provides bonuses to employees subject to limitations that ARPA has on payments to individuals. Further, payments to nursing homes and assisted living facilities may be used for purposes including capital projects and for assisting with integration into the statewide health information exchange system.
I object to this bill and am vetoing it because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor under Section 16.54 of the Wisconsin Statutes to oversee use of federal funds and will allocate these funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law. hist132584I am vetoing Assembly Bill 237 in its entirety. This bill requires the Governor to deposit federal funding allocated through the American Recovery Plan Act (ARPA) of 2021 into the unemployment insurance trust fund to maintain the lowest unemployment insurance tax rate schedule, as set forth in Wis. Stat. s. 108.18(3m)(d), in effect through the end of calendar year 2023. I am vetoing this bill due to several objections. First, the use of ARPA funds outlined by this bill may be prohibited under the language of Section 9901 of the American Rescue Plan Act of 2021, which specifies that federal funds allocated to a state under ARPA cannot be used to directly or indirectly offset or reduce currently imposed taxes through a change in state law or regulations. While the federal government has not issued final guidance regarding this prohibition, implementing Assembly Bill 237 when it could be in violation of federal law may result in Wisconsin having to repay significant amounts of money to the federal government, and would unnecessarily jeopardize current or future federal funding for Wisconsin.
Second, I object to the bill’s proposed limitations on the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor to oversee use of federal funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law.
hist132585I am vetoing Assembly Bill 238 in its entirety. This bill requires the Governor to allocate $308,519,800 of federal funds awarded to Wisconsin from the American Rescue Plan Act of 2021 (ARPA) to counties and municipalities for local road projects.
I object to this bill and am vetoing it because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. Further, I am vetoing this bill because it is imprudent to restrict the use of funds to a purpose that may not comply with federal law. Specifically, the bill’s use of ARPA funds is not expressly authorized under ARPA and may, at best, be only a partially authorized use. While final guidance by the federal government has not yet been issued on the use of these funds, the bill’s allocation of more than $300 million to uses that could be entirely or partially prohibited by the federal government means that the state may end up having to repay some portion of the bill's expenditures to the federal government. This is an unnecessary risk.
In lieu of this bill, I will continue to utilize the authority provided to the Governor under Section 16.54 of the Wisconsin Statutes to oversee use of federal funds and will allocate these funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law. hist132586I am vetoing Assembly Bill 239 in its entirety. This bill requires the Governor to allocate $500,000,000 of the federal funds received by the state under the American Rescue Plan Act of 2021 (ARPA) to provide broadband expansion grants administered by the Public Service Commission (PSC). Under the bill, the commission would be required to award $125,000,000 annually each calendar year between 2021 and 2024. The bill would also require the PSC to submit an annual report to the Joint Committee on Finance no later than the September 1, following the completion of the fiscal year, that details the criteria used for evaluating and awarding grant applications, the recipients of the grants, and the commission's evaluation of the applications of grant recipients for grants awarded in the preceding fiscal year. I am vetoing this bill because I have several objections.
I object to the bill and am vetoing it because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor under Section 16.54 of the Wisconsin Statutes to oversee use of federal funds and will allocate these funds in a manner that is transparent and consistent with both Wisconsin’s needs and federal law. Using this authority, I have already announced my intent to direct a significant amount of the new federal funds under ARPA to provide for broadband expansion. I am however pleased to see that the Legislature agrees with my call for robust investment in broadband expansion which I included in both my proposed 2021-23 biennial budget and in my announced plans for ARPA funds. I look forward to working with the Legislature to enact my proposed initiatives for broadband expansion and affordability in the biennial budget.
hist132587I am vetoing Assembly Bill 240 in its entirety. This bill, as amended, clarifies the Department of Military Affairs' statutory responsibilities relating to the statewide interoperable communications system and allocates federal American Rescue Plan Act of 2021 (ARPA) funds to develop the system. The bill also allocates ARPA funds to Next Generation 9-1-1 to develop an emergency services Internet Protocol and a geographic information systems database and provides funding to a hospital in Eau Claire to expand the number of psychiatric beds. I am vetoing this bill because I have several objections.
I object because allocating funds as directed under this bill is not expressly authorized under ARPA and it may not be an allowable use of this federal funding. While final guidance by the federal government has not yet been issued on the use of these funds, the bill's allocation to uses that may be entirely or partially prohibited by the federal government means that the state could end up having to repay some portion of the bill's expenditures to the federal government. This is an unnecessary risk.
I also object to the bill because it limits the ability to use federal recovery funds with the flexibility necessary to confront the variety of challenges posed by recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020. In lieu of this bill, I will continue to utilize the authority provided to the Governor under Section 16.54 of the Wisconsin Statutes to oversee the use of federal funds, and I will allocate these funds in a manner that is transparent and consistent with both Wisconsin's needs and federal law.
hist132588I am vetoing Assembly Bill 241 in its entirety. This bill requires the Governor to use $500,000,000 of federal funds from the state allocation of the American Rescue Plan Act of 2021 (ARPA) to pay down $250,000,000 in transportation revenue bond debt and $250,000,000 in general obligation debt or, if these uses not allowed by the American Rescue Plan Act, to pay for $500,000,000 in building commission approved capital projects in lieu of bonding.
I object to this bill and am vetoing it because none of the uses for the ARPA funds outlined in this bill are expressly authorized under ARPA. While final guidance by the federal government has not yet been issued on the use of the funds, the bill's allocation of $500,000,000 to uses that could be prohibited or partially prohibited by the federal government means that the state may end up having to repay some, or possibly a large, portion of this $500,000,000 to the federal government. This is an unnecessary risk.
I also object to the bill because it limits the ability to use federal funds with the flexibility necessary to confront the variety of challenges posed by the recovery from the COVID-19 global pandemic and respond to Wisconsin’s changing needs over the course of the pandemic and our recovery. In Wisconsin, the role of the Governor to oversee use of federal funds under Section 16.54 of the Wisconsin Statutes is clearly established and has been in place for decades, a fact that was confirmed by legislative leadership in a letter they sent to me in April 2020.