Presented to the Governor on Friday, March 29.
EDWARD A. BLAZEL
Assembly Chief Clerk
_____________
Executive Communications
State of Wisconsin
Office of the Governor
Madison
March 29, 2024
To the Honorable Members of the Assembly:
The following bills, originating in the Assembly, have been approved, signed and deposited in the office of the Secretary of State:
Bill Number Act Number Date Approved
Respectfully submitted,
TONY EVERS
Governor
_____________
Pursuant to s. 35.095 (1)(b), Wisconsin Statutes, the following 2023 Acts have been published: Act Number Bill Number Publication Date
hist194997Wisconsin Act 255 Assembly Bill 1096 March 30, 2024 hist194999Wisconsin Act 256 Assembly Bill 1097 March 30, 2024 hist194995Wisconsin Act 257 Assembly Bill 1098 March 30, 2024 hist195001Wisconsin Act 258 Assembly Bill 1099 March 30, 2024 hist195003Wisconsin Act 259 Assembly Bill 1100 March 30, 2024 hist195005Wisconsin Act 260 Assembly Bill 1101 March 30, 2024 hist195007Wisconsin Act 261 Assembly Bill 1102 March 30, 2024 hist195009Wisconsin Act 262 Assembly Bill 1103 March 30, 2024 hist195011Wisconsin Act 263 Assembly Bill 1105 March 30, 2024 _____________
Governor’s Veto Message
March 29, 2024
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
_____________
I am vetoing Assembly Bill 34 in its entirety.
This bill requires county feeding bans issued by the Department of Natural Resources be issued based on confirmed positive tests for chronic wasting disease or bovine tuberculosis in free-roaming wild animals only. Currently, the department may issue these bans based on positive tests in both freeroaming and captive animals.
I am vetoing this bill in its entirety because I object to limiting the ability of the department to reduce the spread of chronic wasting disease and bovine tuberculosis in Wisconsin. This bill disregards scientific research that suggests that chronic wasting disease can be transmitted between captive and free-roaming deer. Given that baiting and feeding are known risk factors in the transmission of chronic wasting disease, this bill would limit the department’s ability to effectively respond to new positive cases in captive deer.
In 2023, chronic wasting disease was found for the first time in wild deer in Jackson, Trempealeau, Winnebago, and Polk counties. Additionally, five captive deer facilities in Dodge, Sauk, Washburn, Rock, and Oneida Counties had deer that tested positive for chronic wasting disease. We need to provide more resources to prevent the spread of this disease into new areas of the state rather than limiting an effective management tool and unnecessarily puts Wisconsin wildlife and captive deer at risk.
_____________
I am vetoing Assembly Bill 386 in its entirety.
This bill reduces the tax rate for the third individual income tax bracket from 5.3 percent to 4.4 percent beginning with tax year 2023. Additionally, the bill expands the current retirement income exclusion to subtract from taxable income, for individuals 67 or older, payments or distributions from qualified retirement plans and certain individual retirement accounts up to $100,000 for single filers and $150,000 for married-joint filers beginning in tax year 2023. The bill would reduce revenues in fiscal year 2023-24 by $1.845 billion and by $1.4 billion annually beginning in fiscal year 2024-25.
I have been proud to sign several income tax cuts during my time in office, including keeping–and, in fact, well exceeding–my promise to provide a ten percent, middle-class tax cut targeted to Wisconsin’s working families. During my first term in office, I proudly signed one of the largest tax cuts in Wisconsin state history, which provided $2 billion in individual income tax relief over the biennium and approximately $1 billion annually going forward. Through this historic tax cut, combined with the tax cuts I signed during my first year in office alone, 86 percent of Wisconsin taxpayers have seen an income tax cut of 15 percent or more, with 2.4 million taxpayers receiving relief. Through the income tax cuts I have already signed into law during my time in office, Wisconsin taxpayers will see $1.5 billion in tax relief annually, primarily targeted to the middle class. I was also recently proud to sign legislation to reduce annual child care costs for working families. Under that proposal–similar versions of which I have introduced for years–more than 110,000 Wisconsin taxpayers will see an average benefit of $656 per filer, providing nearly $73 million in annual tax relief.
The bipartisan effort to help reduce the tax burden for families working to afford child care by expanding the child and dependent care tax credit from 50 percent to 100 percent of the federal credit is a great example of meaningful, important work to provide tax relief to the middle class. I believe, as I have often said, when we deliver tax relief for the people of Wisconsin–just as we have–it should be real relief aimed at helping Wisconsin’s working families afford rising costs, and it should be responsible and sustainable, ensuring we can keep taxes low now and into the future without causing devastating cuts to priorities like public schools and public safety down the road. Unfortunately, this bill, similar to many before it, fails to balance these important obligations.
Making sound financial decisions and being prudent with Wisconsin taxpayer dollars remains a top priority and always will for me. I am vetoing this bill in its entirety because I object to fiscally irresponsible measures that would leave the State of Wisconsin unable to meet its basic obligations to adequately fund education, health care, public safety and aid to local governments in the 2025-27 biennium and beyond. This bill would reduce revenues by such a margin that it would likely force the state, even with ordinary revenue growth, to partially or fully drain the Budget Stabilization Fund just to provide bare minimum inflationary adjustments to key programs in the 2025-27 biennium.
Moreover, this bill could result in the state having to repay billions of dollars it received under the American Rescue Plan Act of 2021, completely reversing even under the best projected economic circumstances the progress we have made toward improving our state’s fiscal condition.
_____________
I am vetoing Assembly Bill 388 in its entirety.
This bill establishes a child care center renovations revolving loan fund and program at the Wisconsin Economic Development Corporation, to be funded with the $15,000,000 GPR reserved in the Joint Committee on Finance’s supplemental appropriation during the 2023-25 biennial budget. Under the program, the corporation would award interest-free loans to licensed or certified child care providers or to those individuals who demonstrate that they will be licensed or certified within one year, for renovations of child care facilities. The child care provider must submit a business plan and 3-year financial forecast demonstrating that they will be able to repay the loan. If enrollment is not established or maintained after the loan is received, the corporation must terminate the loan agreement, and the child care provider must immediately repay the outstanding loan balance. The bill requires the corporation to award 60 percent of the funds to in-home child care providers, in awards not to exceed $30,000, and 40 percent to child care providers that are not in-home child care providers, in awards not to exceed $95,000.
I am vetoing this bill in its entirety because I object to the Wisconsin State Legislature’s failure to address the looming child care industry fiscal cliff that, if unaddressed, will have serious consequences for our state’s workforce and economy, including thousands of projected child care programs closures, child care job losses, tens of thousands kids without child care, and half a billion dollars in economic impacts between parents leaving the workforce and reduced employer productivity. The state must make the meaningful, sustainable investments necessary to stabilize the crucial child care industry and prevent its collapse.
I also further object to limiting the Wisconsin Economic Development Corporation’s flexibility in disbursing these funds to child care providers given the Legislature’s refusal to make substantial investments to bolster our state’s child care industry and help keep child care providers open to support our state’s workforce.
Finally, I believe that the funding that was made available in the 2023-25 biennial budget should be distributed as grants to child care providers instead of loans. As a loan balance would have to be immediately repaid if a child care provider is unable to maintain enrollment, even based upon factors beyond their control, many providers, especially new providers, may be hesitant to accept these loans.
Making critical, long-term investments in our child care industry to maintain and expand access to child care in Wisconsin and reduce out-of-pocket child care costs for working families is about doing what is best for our kids, our families, and our economy. I remain hopeful the Legislature will join me in this important work.
_____________
I am vetoing Assembly Bill 395 in its entirety.
This bill would establish requirements for peer-to-peer motor vehicle sharing programs, including license requirements, safety recall responsibilities, disclosure and notification requirements, record retention requirements, and motor vehicle insurance coverage requirements under which the sharing program, vehicle owner or vehicle driver must have vehicle liability insurance with at least the minimum statutory coverage amounts required. The bill would also require the sharing program to assume liability for a vehicle owner for bodily injury, property damage, uninsured motorist and personal injury losses, except in the case of certain acts by the vehicle’s owner. Under the bill, insurance maintained by the sharing program must act as backup coverage in cases where the vehicle owner’s or driver’s coverage has lapsed or does not provide the required coverage. The bill would also clarify that sharing programs and shared vehicle owners are not in the vehicle rental business and are therefore exempt from local rental car taxes and state rental vehicle fees if applicable sales and use taxes were paid at the time of purchase.
I am vetoing this bill in its entirety because I object to the bill’s inadequate insurance coverage requirements. Under the bill, sharing programs, vehicle owners, and vehicle drivers would only be required to have coverage for the minimum statutory insurance coverage amounts, which are outdated and too low to adequately cover the costs associated with medical bills and property damage, potentially leaving victims on the hook for the remaining costs. I am open to signing a version of this bill at a future date that provides more adequate insurance coverage requirements.
I also object to the local rental car tax and state rental vehicle fees exemption in this bill. Tourism initiatives, such as the continued financial support for the Wisconsin Center District, would likely be impacted by reduced local revenues if this bill were signed into law.
_____________
I am vetoing Assembly Bill 398 in its entirety.
This bill specifies that compensated participants in clinical research trials shall not be treated as employees for purposes of minimum wage, worker’s compensation, and unemployment insurance laws.
I am vetoing this bill in its entirety because I object to potentially depriving clinical research trial participants from receiving the protections and benefits to which employees are generally entitled, as well as related legal remedies. Additionally, the changes in this bill create a specific carveout from provisions that could otherwise classify an independent contractor as an employee for purposes of worker’s compensation protections. There continues to be a well-established process that the Department of Workforce Development uses to navigate employee and contractor determinations on a case-by-case basis. The department uses a six-part test for minimum wage, and a nine-part test for unemployment insurance and worker’s compensation benefits. These tests provide a guideline and consistency for classification between the relationships of individuals and employers.
I object to providing a specific carveout for clinical research trials, which may signal to other employers that they may seek similar special treatment for other work or services that would otherwise qualify for worker’s compensation benefits under the law, which may further limit employee protections.