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Fall Legislative Session Could See Action on Key Realtor® Issues National Registry Effective Date Delayed Existing Home Sales Broke Record Again in August
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Best of the Legal Hotline Selling Co-op Units Member Letter - Predatory Lending - You Don't Know the Half of It
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Upcoming Classes & Events Management Conference - Dec. 11, 2003 Member Benefits
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Introducing REALTOR® Referral Ads And the Winner Is ...
	Public Policy Forum
Wisconsin Is Presidential Battleground State WRA Seeks Health Insurance Solutions
	Land Use Forum
WRA Establishes Growth and Economic Development Legislative Agenda Regulatory Reform is a Hot Topic at the Capitol
	Inside the WRA
Chairman's Corner with Bob Weber Nominating Committee Seeks Candidates The Secret Weapon of Sustainable Sales Success

Land Use Forum

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  WRA Establishes Growth and Economic Development Legislative Agenda

by Tom Larson

Like great schools, a clean environment, and an efficient transportation system, a healthy, vibrant economy is critical to Wisconsin's quality of life. Many factors contribute to our state's economy, including a skilled labor force, an adequate supply of affordable housing, and a favorable regulatory environment. If any of these factors are lacking, companies will look to other states and countries to do business.

The current regulatory environment in Wisconsin is problematic. This is particularly true in the housing and real estate development industry. Government red tape, excessive delays in receiving permits, and a lack of financial incentives are making it difficult for Wisconsin to meet our demands for housing and economic development.

To meet these demands, remain competitive in the global business market and jump start our state's economy, the WRA has proposed the following list of possible regulatory reform initiatives that will help promote economic development in Wisconsin:

Priority Issues

• Health insurance coverage - Seek legislation making health insurance more available and affordable for independent contractors and small businesses, including but not limited to, exempting independent contractors from the requirement that their employer pay a percentage of the premium; and creation of a small business group to which independent contractors can subscribe.
• E-commerce - Revise the state's electronic commerce statutes to facilitate use of transactional platforms and electronic signatures using federal legislation (E-sign) and the Uniform Electronic Transaction Act (UETA) as the foundation for Wisconsin-specific statutes.
• Permit processing deadlines - To help expedite the permit approval process, require all state agencies and local governments to establish timelines for acting on permit applications. If the permits are not granted within the specified time frame, the permits will be deemed automatically approved.
• Moratoria reform legislation -Authorize municipalities to enact moratoria on economic development only where there is an existing or imminent shortage of essential public facilities or a significant threat to public health or safety presented by economic development.
• Reasonable fees on economic development - Codify existing case law prohibiting local units of government from charging fees that exceed the actual costs incurred to provide that service. Fees that are imposed to generate revenue are an illegal tax unless specifically authorized by the Legislature.
• Ch. 30 Reform - Streamline the permitting process related to Wisconsin's surface water regulations by (a) providing permit applicants with the option to bypass the contested case hearing requirement and proceed directly to circuit court, and (b) reducing the time period required for public notices.

Other Issues

• Expansion of TIF Authority -- Seek expansion of the current TIF district law to provide local units of government with additional tools to attract new economic development, promote affordable housing and protect against new restrictions on use of TIF districts.
• Trans. 233 - Repeal and revise Trans. 233 to address the excessive delays in receiving DOT approvals, unreasonable traffic study requirements, and overreaching DOT regulatory authority; all of which are creating tremendous obstacles for economic development in Wisconsin.
• Vested rights - Freeze development regulations for completed permit applications and provide that any subsequent changes in land-use regulations will not affect the consideration of the pending application.
• Impact fees - Assessed impact fees must be refunded to the payor of the fee if the capital improvement is not commenced within five years.
• State agencies' use of guidances - To provide the economic development community with greater certainty about state regulations, prohibit the use of "guidances" used for regulatory purposes unless such guidances have been adopted by administrative rule.

The WRA has been working closely with members of both houses in the Legislature to advance these proposals as part of their respective economic development and regulatory reform packages. We will be meeting with and briefing the governor's administration on these initiatives in early October. If you have any questions, please contact Tom Larson at (608) 240-8254.

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  Regulatory Reform is a Hot Topic at the Capitol

by Tom Larson

Given the fiscal woes in state government and the downturn in our economy, stimulating Wisconsin's economy and promoting economic development have been the mantras in Madison since the elections last Fall. Republicans and Democrats alike have been stressing the need to provide incentives for job growth and improve the business climate in our state. Although Governor Doyle and the Republican Legislature have not seen eye-to-eye on many issues over the past year, both are calling for reformation of the state's regulatory environment as a way to jump-start Wisconsin's economy. However, they each have different approaches to accomplish this goal.

Governor Doyle's economic development package, entitled "Grow Wisconsin," focuses on four main areas: 1.) create a competitive business climate, 2.) invest in people, 3.) invest in Wisconsin businesses, and 4.) reform regulations and make government more responsive. The governor's regulatory reform suggestions included several directives aimed at streamlining and consolidating the environmental permitting process. Specifically, the governor's proposal would set specific timelines and deadlines for processing permit applications. If an agency missed the deadline for approval or disapproval, the application fee would be refunded to the permit applicant. Additionally, the governor's proposal would set up a system of fines for the agency for not meeting deadlines. The fines would not be paid to the applicant, but would instead be directed to a separate fund to support the environment. To review the full text of the governor's "Grow Wisconsin" plan, go to www.wisgov.state.wi.us/docs/Doyle_Economic_Package.pdf on the Internet.

The Senate Republican economic growth agenda was developed through a series of public hearings held by the Senate's Select Committee on Job Creation, co-chaired by Senator Ted Kanavas (R- Brookfield) and Senator Cathy Stepp (R- Sturtevant). Their plan focuses on three main areas: 1.) regulatory reform, 2.) capital investment, and 3.) Wisconsin's infrastructure in the 21st century. As a part of their regulatory reform initiative, they indicated that their legislation would strive to 1.) streamline the permitting process through effective permit deadlines, 2.) reform tax incremental financing (TIF) to make it easier to redevelop brownfields and eliminate red tape and increase the amount of value municipalities can use for a TIF, and 3.) improve Wisconsin Administrative Code ch. Trans. 233. To view the Senate Republican's regulatory reform proposals, go to http://thewheelerreport.com/releases/Sep03/Sep10/0910gopjobs.PDF.

As part of the Senate Republican's regulatory reform package, Senator Cathy Stepp introduced SB 246, legislation requiring state agencies to create timelines for reviewing permit applications. If the agencies do not conform to these time limits, the permits, in most cases, will be automatically approved. For a select few permits (e.g., air pollution and outdoor advertising), the fees will be returned to the permit applicants. The Senate recently passed SB 246 by a bi-partisam vote (30-13). The bill will now go to the Assembly and will hopefully be passed within the next few weeks. To review the full text of this bill, go to ( www.legis.state.wi.us/2003/data/SB-246.pdf ) on the Internet.
Although the Assembly Republicans will likely introduce their regulatory reform package in the upcoming weeks, Representative Phil Montgomery (R-Green Bay) introduced AB 486, a bill very similar to SB 246. Like SB 246, the bill requires state agencies to establish time periods for reviewing permit applications and deems the applications automatically approved if the agency fails to act within those timeframes. A public hearing was held on AB 486 by the Assembly Committee on Government Operations and Spending Limitations on September 23, 2003. To review the full text of AB 486, go to www.legis.state.wi.us/2003/data/AB-486.pdf on the Internet.

The WRA will be working with both the governor and the Legislature to advance these economic development proposals during the upcoming legislative session. If you have any questions, please contact Tom Larson at (608) 240-8254.

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