Section 308
This section requires the design-build Technical Review Committee to have a standalone process to review and accept alternative technical concepts and value engineering change proposals.
I am vetoing this section because I object to the creation of processes that are redundant as the entire purpose of design-build bids and the technical review process is to develop and adjudicate alternative technical concepts and weigh the value of engineering changes.
4949.
Design-Build Procurement Manual Committee and Reports Section 319 [as it relates to the preparation of a report establishing program structure and the creation of a design-build manual]
These provisions require the Department of Transportation to prepare a report that establishes a program structure for delivering design-build projects and specifies that the department may not designate a design-build project prior to the completion of this report. These provisions further require that a committee prepare a design-build procurement manual. The committee must include department employees, a person representing a relevant state association nominated by the Governor with the advice and consent of the Senate, and a person representing a relevant national trade association nominated by the Governor with the advice and consent of the Senate.
I am vetoing these provisions because I object to the delays that these provisions will create. Since the initial design-build framework was established in state law by 2019 Wisconsin Act 9, the department has gained substantial expertise in design-build project methodology. The Legislature's approval of bonding in the 2021-23 budget specifically for design-build projects was an acknowledgement of the Department of Transportation's progress. My veto of these provisions will allow the department to proceed in project selection without needless delay and will allow the department to draw on both internal and external expertise as it sees fit to develop a design-build manual.
5050.
Report on Unallocated Business Development Tax Credit Authority Section 365
This section creates a statutory requirement that the Wisconsin Economic Development Corporation submit to the Joint Committee on Finance by January 31 of each year a report identifying the amount of Business Development Tax Credit authority that remains unallocated as of December 31 of the prior year.
I am vetoing this section because I object to creating an extraneous, unnecessary reporting requirement for information that is already available upon request from the Wisconsin Economic Development Corporation. Tax credit awards are also regularly updated under current reporting requirements by the corporation. Further, the Legislative Audit Bureau audits the corporation each biennium, including its administration of the Business Development Credit. As a result, this information is readily available.
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July 8, 2021
To the Honorable Members of the Assembly:
The following bill, originating in the Assembly, has been vetoed in its entirety, and was returned to its house of origin, together with the objections in writing:
Bill Number Date of Veto
Assembly Bill 191 July 8, 2021
hist137831I am vetoing Assembly Bill 191 in its entirety. The bill, as amended, would exempt from property taxation almost all property that is currently classified as personal property. Certain personal property related to buildings and other improvements on leased land would be assessed instead as real property. The result is that no items of personal property would be subject to the property tax beginning with tax assessments as of January 1, 2022. The bill, as amended, would also transfer from the general fund to the transportation fund $20 million in fiscal year 2021-22 and $44 million annually beginning in fiscal year 2022-23 to compensate the transportation fund for expected losses in railroad tax revenue. The bill is linked to a separate provision in the 2021-23 biennial budget, as amended by the Joint Committee on Finance, to provide aid payments to local governments to compensate those governments for the property tax revenues those local governments would lose under the exemption provided by the bill.
I am vetoing this bill because I object to the unusual and haphazard process by which the Legislature pursued the repeal of the personal property tax, which has created potential unintended consequences for railroad and utility taxes as well as the manufacturing and agriculture credit. While there were attempts in the amendments to the bill to address some of these problems, we need a more comprehensive approach. Most concerning is that the Legislature has not directly addressed the possible effect that this bill could have on the state’s utility taxes. As presently drafted, the exemption of all personal property could potentially extend to the state’s ad valorem utility taxes, which are based on the property values of utility property, inclusive of personal property owned by utility companies. Should this treatment be applied by the courts in order to adhere to the Wisconsin constitution’s uniformity clause, the state could easily lose tens of millions in general fund tax revenue, if not more. Additionally, by not providing an immediate link between the compensating aid payments to local units of government and the exemption of personal property, the Legislature has created an unusual arrangement that is at odds with prior exemptions of personal property and such compensating aid.
I have left the funding intact in the budget because I welcome additional legislative action to meaningfully address the above issues. I call upon the Legislature to pass a new bill that comprehensively addresses the unintended impacts of this exemption and provides certainty and stability for local government aid.
Respectfully submitted,
TONY EVERS
Governor
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July 8, 2021
To the Honorable Members of the Assembly:
The following bill, originating in the Assembly, has been vetoed in its entirety, and was returned to its house of origin, together with the objections in writing:
Bill Number Date of Veto
hist137832Assembly Bill 367 July 8, 2021 I am vetoing Assembly Bill 367 in its entirety.
The bill, as amended, would require the Governor to allocate $65,000,000 in federal funds received under the American Rescue Plan Act of 2021 (ARPA) for loans to be made by the Wisconsin Economic Development Corporation (WEDC) to finance the purchases of the Verso Paper Mill in the city of Wisconsin Rapids and the Park Falls Pulp and Paper Mill in the city of Park Falls, allocating $50 million for the Verso Paper Mill and $15 million for the Park Falls Pulp and Paper Mill, respectively. The bill also specifies terms and conditions regarding the loans, including a requirement that WEDC acquire a security interest in the properties.
I am vetoing this bill because I object to using ARPA funding for this purpose when the state has sufficient GPR funding to support the project and ARPA is not a reliable funding source to provide the long-term assistance needed to revive these mills and provide stable jobs to their workers. First, it is not clear that the U.S. Department of Treasury will permit ARPA funds to be used for this purpose. Treasury’s Interim Final Rule governing ARPA eligibility requires that assistance provided to businesses must respond to the negative economic impacts of COVID-19. Because many mills were experiencing significant financial difficulties prior to the COVID-19 pandemic as a result of long-term economic and industrial trends in this sector, the federal government may view the assistance as insufficiently tied to the impacts of the pandemic. Second, ARPA funds are only available for use through December 31, 2024, limiting their flexibility for the type of long-term loans needed by potential purchasers of the mills.
If a project was legislatively mandated and later deemed ineligible, the state would have to return the funds to the federal government. It is inappropriate to use a funding source that presents such risks and challenges when the state is in a strong financial position, sufficient GPR is available, and using state resources would provide greater flexibility on agreement terms and lower risk to the state. I previously called a special session of the Legislature to act on legislation that would have allowed us to invest $1 billion into economic development projects and initiatives across our state. Republicans gaveled out of that special session without deliberation or debate. Shortly thereafter, this bill was introduced, and I worked with the WEDC, legislators from both parties, local elected officials, and workers to reach a bipartisan agreement to amend Assembly Bill 367 and reach a solution without potentially jeopardizing state support for the mills or federal funds. Unfortunately, that amendment was not adopted.
I support efforts to provide reliable, long-term relief to Wisconsin’s vital paper industry and the workers at the Wisconsin Rapids and Park Falls mills. My administration has and will continue to work with local stakeholders to support these efforts. I put forward a bipartisan agreement providing an alternative funding mechanism for this relief that is realistic and can provide the communities a path forward, and I would welcome the Legislature to present legislation consistent with those conversations. Following my action on the state budget, there is ample state funding available for this and other priorities of the state.
Respectfully submitted,
TONY EVERS
Governor
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July 8, 2021
To the Honorable Members of the Assembly:
The following bill, originating in the Assembly, has been vetoed in its entirety, and was returned to its house of origin, together with the objections in writing:
Bill Number Date of Veto
hist137834 Assembly Bill 407 July 8, 2021 I am vetoing Assembly Bill 407 in its entirety.
This bill creates a Legislative Human Resources Office as a nonpartisan legislative service agency, with positions in the unclassified service of the state civil service system and headed by a director. Additionally, the bill seeks to shield the office’s records from the public records law by requiring the office to “at all times observe the confidential nature of records, requests, advice, complaints, reviews, investigations, disciplinary actions and other information in its possession relating to human resources matters.”
I am vetoing this bill because I object to creating a blanket exemption for the legislature’s personnel records. The public can often only learn about misconduct through public records requests, including requests for personnel records. The people of Wisconsin have a right to know about misconduct by public officials and employees, including those in the legislature. Further, this provision is unnecessary. Current law already gives record custodians ample flexibility to protect sensitive information contained in personnel records, such as the names or other information that could be relied on to infer the identity of a victim or whistleblower.
While I would support a clean bill that establishes a Legislative Office of Human Resources, I cannot support a bill that would be used to hide official misconduct from public scrutiny. The people of Wisconsin deserve more transparency, not less.
Respectfully submitted,
TONY EVERS
Governor
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Adjournment
Chief Clerk Blazel moved that the Assembly stand adjourned until 10:00 A.M. on Tuesday, July 13.
The Assembly stood adjourned.
10:06 A.M.
