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E. TRANSPORTATION, TAX, LOCAL GOVERNMENT AND ECONOMIC DEVELOPMENT
59. Expansion of Auditing Activity
  Section 9137 (1p)
This section advances the termination date of 38.0 FTE GPR audit and compliance project positions that were provided to the Department of Revenue under 2017 Wisconsin Act 59, to an effective date of September 30, 2023.
I am partially vetoing the effective date language in section 9137 (1p) to extend the termination date of these positions to encompass the full 2023-25 biennium because I object to the early elimination of these positions that are needed to ensure tax fairness and equality. The new effective termination date will be June 30, 2025. This will allow the Department of Revenue to continue its tax enforcement and auditing activities without interruption.
60. Defining Vapor Products
  Section 1754
This section defines a "vapor product" and the bill imposes an excise tax and inventory tax of 5 cents per milliliter on vapor fluids. The bill further amends current law regulating the sale and taxation of tobacco products to include vapor products.
I am partially vetoing the definition of "vapor product" in section 1754 because I object to the ambiguous language in the definition. Specifically, the language could be erroneously construed to exclude liquids or other substances that are used in electronic cigarettes, electronic cigars, electronic pipes or similar devices. Such an interpretation would be contrary to intent.
As a result of my partial veto of this definition, the vapor products tax will clearly apply to any device containing vapor fluid and to vapor fluid sold separately.
61. Tolling and Mileage-based Fee Study
  Section 1082m
This section requires the Department of Transportation to spend not more than $2,500,000 to study tolling and mileage-based fees. It further requires the department to submit a report on its findings and include its recommendations in the department's next biennial budget request.
I am vetoing this section because I object to the financing of another study that will show, yet again, that the motor fuel tax is the most effective way to approximate a user fee of roadway use and the most cost-effective way to collect revenue. The Legislature has had more than enough evidence and enough time to study the issue. It is time for the Legislature to stop stalling and act to secure a long-term transportation funding solution.
62. Registration Fees by Weight Classification
  Section 1988b
This section requires the Department of Transportation to charge truck owners the same registration fee of $100 per vehicle to register all trucks that weigh not more than 10,000 pounds.
I am partially vetoing this section to continue to charge owners of trucks that weigh more than 6,000 pounds but not more than 8,000 pounds and trucks that weigh more than 8,000 pounds but not more than 10,000 pounds their current, respective, registration fees of $106 and $155 because I object to owners of lighter vehicles unfairly being charged the same fees as those for heavier trucks. Heavier trucks do more damage to roadways and therefore should be charged more than lighter trucks. This action retains the uniform $100 registration fee for vehicles that weigh not more than 6,000 pounds. As a result of this partial veto, revenue to the transportation fund is estimated to increase by $3,027,600 in fiscal year 2019-20 and $4,157,200 in fiscal year 2020-21.
63. Discretionary Supplement
Sections 126 [as it relates to s. 20.395 (2) (fc)], 184s and 1095m
These provisions require the Department of Transportation to expend $90,000,000 GPR on local road projects with $32,003,200 directed to county projects, $22,847,400 directed to village and city projects, and $35,149,400 directed for town projects.
I am partially vetoing section 126 [as it relates to s. 20.395 (2) (fc)] by lining out the amount under s. 20.395 (2) (fc) in fiscal year 2019-20 and writing in a smaller amount that reduces the appropriation by $15,000,000 GPR because I object to the magnitude of general fund dollars being utilized for transportation purposes in this budget. The result of this action is to reduce the amount appropriated in fiscal year 2019-20 under this appropriation from $90,000,000 to $75,000,000. I am also requesting the Department of Administration secretary not to allot these funds. While additional investment in our local transportation needs is welcome, this provision creates yet another one-time subsidy to the transportation fund and illustrates the missed opportunity to provide a sustainable funding solution that would allow this program to be an ongoing investment in local communities without using the general fund to pay for transportation projects.
I am also partially vetoing these sections to remove the limitations placed on the use of the general fund monies because I object to the restrictions that these constraints place on the department to fund grants to the most needed projects throughout the state. Law enforcement and firefighters across Wisconsin have called on the Legislature to address poor road conditions that are putting Wisconsinites' safety at risk. The effect of this partial veto will be to allow the department to prioritize the most critical transit and transportation needs.
64. Fuel Suppliers Administrative Allowance
  Section 9437 (5f)
This section specifies that the bill's reduction in the fuel suppliers administration allowance will take effect on the first day of the year that occurs four years after the signing of the bill. This section, consequently, creates an effective date of January 1, 2023, for rate reductions in the fuel suppliers administrative allowance. The bill reduces the fuel suppliers administrative allowance rates from 0.0125 and 0.001 to 0.00625 and 0.0005, respectively.
I am partially vetoing the effective date in section 9437 (5f) to advance the effective date to January 1, 2020, because I object to the protracted length of time provided to implement the rate changes. The new implementation date of January 1, 2020, will provide sufficient time for businesses to adapt to the change in tax allowances.
As a result of this partial veto, transportation fund tax revenue is estimated to increase by $2,800,000 in fiscal year 2019-20 and $5,700,000 in fiscal year 2020-21.
65. Quarry Local Zoning Preemption
Sections 760c, 760g, 760k, 760p, 760t, 760w, 760y, 761c, 761e, 761g, 761k, 761p, 766c, 766g, 766n, 766r, 766w, 777m and 1103m
These sections limit the authority of political subdivisions to place conditions or limits on the operations of quarries.
I am vetoing these sections because I object to this change to local authority occurring without the opportunity for public debate outside of the budget process. I recognize the upward cost pressures on road building caused by trucking aggregate long distances and the cost savings that could be realized, but these concerns must be weighed against the need for local control of land use. As such, I am vetoing this provision to allow for further public debate.
66. Supplemental Transportation Aids
  Section 1091m
This section requires the Department of Transportation to pay a supplemental general transportation aids payment to qualifying towns.
I am partially vetoing this section because I object to the date the aid payments must be calculated by because information needed to accurately calculate the payments will not available by the specified date.
67. Wheel Tax Fee Increase
  Section 1988m
This section requires the Department of Transportation to charge at least 27 cents per vehicle registration application for municipal or county vehicle registration fees.
I am vetoing this section because I object to statutorily establishing higher fees upon the municipalities and counties that have had to adopt or increase local registration fees to improve their roads after eight years of underfunding by the Legislature.
68. Lieutenant Governor Security
  Section 9144 (4o)
This provision puts a limit on the amount that the Department of Transportation is allowed to spend on the security and safety of the Lieutenant Governor.
I am vetoing this provision because I object to limiting cost expenditures in this manner because it undercuts the judgment of law enforcement. Inadequate security measures put the brave men and women of law enforcement, the Lieutenant Governor, his staff, and the general public at large in danger. This provision is politically driven and is intended to undermine the Office of the Lieutenant Governor and the valuable work he performs across the state.
69. Required Interchange for I-41 in Brown and Outagamie Counties
  Section 1078d
This section requires the Department of Transportation to expand I-41 from two to three lanes over 23 miles between Brown and Outagamie counties. It further requires an interchange to be constructed at Southbridge Road, French Road and Creamery Road in Brown County.
I am partially vetoing this section to delete the specified interchange because I object to dictating specific design elements for congestion and safety improvements without obtaining the input of professional highway engineers. While the Department of Transportation may decide that the specified interchange is merited, this determination should be left to the department. This veto ensures that Wisconsin's highways will be designed to best fit the needs of its highway users.
70. Initial Applicability of Registration Fee Increases
  Sections 9344 (1) and 9344 (4o)
These sections specify that the changes to automobile and truck registrations initially apply to applications received by the Department of Transportation on October 1, 2019.
I am partially vetoing these sections because I object to the confusion that will be created by linking the amount of the fee owed to when the application is received by the Department of Transportation. By vetoing the reference to when the application is received, my partial veto eliminates the potential of two individuals with the same date of application being charged different fees simply because of when the application is received. My partial veto will also avoid circumstances where an individual will mail a registration renewal prior to October 1, 2019, but then require the same individual to submit an additional amount later because of when the application is received by the department. As a result of my partial veto, the registration fee changes will apply to applications starting on October 1, 2019.
71. Noise Barrier in Milwaukee County
  Section 9144 (4e)
This provision requires the Department of Transportation to install a noise barrier along the east side of I-41 adjacent to 112th Street, between Clarke Street and Center Street, in Milwaukee County by the end of the 2019-21 fiscal biennium.
I am vetoing this provision because this project is already on the Department of Transportation's project calendar and is thus unnecessary. I also object to legislatively determined deadlines for individual components of large highway projects.
72. Passenger Rail
  Section 1082p
This section requires the Department of Transportation to submit a request for approval to the Joint Committee on Finance to use expenditure authority provided under a newly-created appropriation for passenger rail development.
I am vetoing this section because I object to needless oversight requirements that could cripple the operations of a vital transportation option in southeastern Wisconsin.
73. Direct Sale of Motor Vehicles from Manufacturer
  Sections 1826g, 1826m and 1826s
This provision allows for the sale of motor vehicles directly by a dealership owned by a manufacturer if that manufacturer only makes electric powered cars.
I am vetoing this provision as I object to significant changes to existing motor vehicle dealership law and the consumer protections they provide to Wisconsin occurring late in the state budget process and without the opportunity for adequate public input and debate.
74. City of Kaukauna Bridge
  Sections 184o and 9144 (4x)
These sections require the Department of Transportation to fund the repair of the Veterans Memorial Bridge in the city of Kaukauna on Catharine Street from the appropriation under s. 20.395 (2) (eq).
I am vetoing these sections as I object to the placement of the project in the budget, particularly given the lack of additional funding provided to ensure that this earmark does not result in a delay for other needed repairs. At my direction, the Department of Transportation has already been reviewing options to move forward with the Kaukauna bridge project and will continue to do so.
75. Alternative Project Delivery
  Sections 46m, 1079m, 1089m, 9144 (4p) and 9144 (4q)
These provisions require the Department of Transportation to establish an office of innovative program delivery, contract for six projects through a "design-build" contractual framework, evaluate potential bids with a technical committee, and submit reports to the Joint Committee on Finance.
I am partially vetoing these provisions because I object to the level of specificity that has been included in the statutes and the restrictions that have been placed on the department, which will make successful implementation of this alternative project delivery system difficult. As a result of my partial veto, the department will be able to implement a contracting model that has proven successful in accelerating transportation related project delivery at a reduced cost. In addition, the department will have the flexibility to implement this system on an ongoing basis without overly prescriptive statutory parameters.
76. Payments to Offset Reduction in Video Service Provider Fees
  Section 1073g
This section provides a state aid payment program for ten years to compensate each municipality losing revenue as a result of the bill's reductions to fees paid by video service providers.
I am partially vetoing this section to make the payments ongoing because I object to terminating the payments after ten years. As a result of my veto, the permanent reduction in video service fees will be accompanied by a continuing stream of payments to municipalities to offset this revenue loss. This partial veto has no fiscal effect in the 2019-21 biennium.
77. Economic Development Grant for Milwaukee 7 Economic Development Partnership
  Section 9149 (1i)
This section creates nonstatutory language requiring the Wisconsin Economic Development Corporation to provide $250,000 in fiscal year 2019-20 to the Milwaukee 7 Economic Development Partnership for supporting efforts to secure basing of KC-46 tanker aircraft with the 128th Air Refueling Wing of the Wisconsin air national guard.
I am vetoing this section because I object to a directive that is entirely unnecessary. If the Wisconsin Economic Development Corporation, working cooperatively with the Department of Military Affairs, believes that it is likely that a grant to the Milwaukee 7 Economic Development Partnership will help secure this basing, the corporation has sufficient flexibility in its current budget to provide such support.
78. Fabrication Laboratories Grant Program
  Section 9149 (1g)
This section creates nonstatutory language requiring the Wisconsin Economic Development Corporation to allocate at least $500,000 in each year of the 2019-21 biennium for the purpose of awarding grants under a fabrication laboratory grant program substantially similar to the program originally created under 2015 Wisconsin Act 55.
I am vetoing this section because I object to the Legislature limiting the Wisconsin Economic Development Corporation's authority. The fabrication laboratories program has been an innovative effort to expand the educational experiences of public school children across the state, but this is a policy more appropriately administered with other educational grant programs. If the corporation wishes to make such an allocation it can choose to do so on its own volition.
Sincerely,
Tony Evers
Governor
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