For grocers and all small businesses, many of these proposed changes will have a significant impact on your bottom line. We are encouraging all WGA members to be on alert and prepared to take action as directed by the WGA.
Government Affairs
State Issues
OFF TO THE RACES
The state senate and state assembly flew out of the gates when the legislature officially convened on January 8, 2009, already introducing over 75 proposals in each house.
- Coming out of the gate early was minimum wage. SB 1/AB 41 dealt a blow to all small businesses, raising the minimum wage for many classifications of workers. The proposed wage for adults is $7.60, up $1.10 from its current level. A recent amendment proposed the wage for minors should increase $1.35 to $7.25. Of course, it would be indexed to inflation. This bill passed the Senate on a party line vote and the fate now lines in the hands of the state assembly.
- Hot on the trail was SB 2/AB 40, which changed the rules governing wage liens. Under this bill, an employee or collective bargaining agent bringing a wage claim would be awarded a priority lien, taking precedence over even banks and lending institutions. This bill also passed the Senate on a party line vote.
- Compensatory and punitive damages are also on the rise. Under SB 20/ AB 31, unlimited compensatory and punitive damages could be awarded for claims of workplace discrimination under the Wisconsin Fair Employment Act. Employers would face the Wisconsin State circuit court to determine damages. AB 22 makes a violation of the fair employment rights of job applicants or employees based on the applicant or employee’s arrest or conviction record a Class I felony. None of these bills have passed out of committee.
- The “Wisconsin Stimulus Package” was so fast that it didn’t even need a public hearing before it was passed by both houses and signed by the Governor on February 19. SB 62 changes many tax provisions, but the most relevant in our case is the streamlined sales and use tax, which adopts common definitions for various products and services, instead of the exemptions we have been using. This is expected to bring in a $70.7 million increase.
Governor Doyle entered his horse into the race, introducing his budget with AB 75 on February 17. It contains numerous tax, business liability, environmental, and employment changes, including:
AB 75 will raise the tax on cigarettes by $0.75 per pack. It is currently set at $1.77 per pack.
-
If passed, AB 75 will make it easier for a plaintiff to recover all damages in a tort case. Under current law, the defendant had to be at least 51% liable for injuries, but this bill would lower that to only 1%.
-
A significant amount of money would go towards the retraining of unemployed workers. AB 75 would redirect $1.45 million from the Wisconsin Unemployment Insurance Trust Fund to fund reemployment services. WUITF is currently insolvent and borrowing from the Federal Government. Doyle is also asking for $2.6 million in employment training for Wisconsin Labor Unions.
-
The Governor’s budget bill creates a new 3 percent tax on the gross receipts tax of oil companies. As impossible as it may be to enforce, the bill states that oil companies cannot pass the costs of the tax through to customers.
-
The budget proposes to raise recycling tipping fees from the current $4 per ton of solid waste, other than certain kinds of high−volume industrial waste, to $5 per ton.
For grocers and all small businesses, many of these proposed changes will have a significant impact on your bottom line. We are encouraging all WGA members to be on alert and prepared to take action as directed by the WGA. You can do this in a few ways:
-
Make sure you are on the distribution list to receive WGA President Brandon Scholz’ President’s Report e-newsletter. This newsletter is sent out every Friday and contains timely information on state and federal legislative issues as well as general retail food industry tidbits. To make sure you are on the list, email Brandon.
-
Participate in the WGA’s Government Affairs Conference Calls. These 30-minute calls are held bi-weekly during the legislative session and quickly and efficiently provide all the hot topics and the specific action needed by retailers. To receive the specific dates and call-in information, please contact Michelle.
-
Be Alert! The WGA will send out an e-mail blast and/or a fax blast to all members if there is a hot issue that members need to be aware of or an issue that requires immediate attention.