By Adam Korbitz, Government Relations Coordinator, State Bar of Wisconsin
May 25, 2010 – Many practice sections of the State Bar of Wisconsin chalked up significant legislative victories during the recently concluded 2009-10 legislative session, which ended when the Legislature adjourned for the year on April 22-23, 2010.
These section victories complement what was also a highly productive lobbying year for the State Bar’s Board of Governors. Fifteen of the State Bar’s 26 sections have adopted lobbying status and can take public policy positions in addition to those adopted by the BOG.
State Bar practice sessions worked on numerous bills throughout the legislative session, which began in January 2009. While the Legislature had passed several significant bills backed by various sections by the end of 2009, the Legislature did not conclude work on many until the final days of the spring floor session.
Unless called into special or extraordinary session, the Legislature is not expected to reconvene until January 2011, following the November 2010 general election. During the November election the entire 99-member state Assembly and 17 of the state Senate’s 33 seats will stand for election.
Many bills not passed until very end of session
When the Legislature resumed its regular session in January 2010 following its holiday break, the State Bar’s government relations team was kept busy as many bills followed by individual State Bar sections continued to move through the Legislature. These bills included measures addressing estate planning, tax law, commercial law, torts and financial services reform.
In mid-April 2010, the State Bar’s Real Property, Probate, and Trust (RPPT) Section as well as the Elder Law Section saw final passage of Assembly Bill 704, also known as the Uniform Power of Attorney Act. Intended to update Wisconsin’s durable power of attorney law, the revised law promotes acceptance of durable powers of attorney and addresses problems in previous law that allowed abuses.
The bill was the product of a multi-year review of proposals developed by the Uniform Law Commission and was designed to protect those persons who wish to name an agent under a durable power attorney while also offering transparency and protection for those who are asked to accept the powers of attorney. Both sections – along with the Wisconsin Bankers Association -- were involved in the development of the bill, which was introduced by two State Bar members, Representative David Cullen and Senator Fred Risser. Gov. Jim Doyle signed the bill into law on May 12, 2010 as 2009 Act 319.
In addition -- again with strong support and assistance from the RPPT and Elder Law sections -- the Legislature acted in the final hours of its 2009-10 regular session to minimize the potential adverse estate planning outcomes associated with the one-year repeal of the federal estate tax for deaths occurring in calendar year 2010. Both houses approved Senate Bill 670, which was introduced on April 7, 2010 by Senator Lena Taylor, a State Bar member, and co-sponsored by Representative Robert Turner. The bill addresses administration of affected wills and trusts that were created in the expectation that the federal estate tax would continue in 2010. Gov. Doyle signed the bill into law on May 13, 2010 as 2009 Act 341.
The Elder Law Section also supported Senate Bill 513 and Senate Bill 572, which the Legislature gave final passage to in April 2010. The bills relate to the purchase and sale of life insurance contracts by insured owners during their lifetimes and to the suitability of the sale of annuities to consumers. Gov. Doyle signed both bills into law on May 13, 2010 as 2009 Wisconsin Acts 344 and 343, respectively.
The Business Law Section also saw success in the final days of the legislative session, with final passage of two bills related to the Uniform Commercial Code, Senate Bills 472 and 480. Senate Bill 472 repeals and recreates UCC Article 1, relating to general provisions. Specifically, the bill revises and updates the general provisions chapter to better reflect and accommodate changing business practices. The bill also makes many changes of a technical or non-substantive nature, such as reordering and renumbering sections. Senate Bill 480 adopts revised UCC Article 7, relating to documents of title. Both SB 472 and SB 480 were introduced by Senator Risser and Representative Cullen. Gov. Doyle signed both bills into law on May 12, 2010, as 2009 Wisconsin Acts 320 and 322, respectively.
On March 15, 2010, Gov. Doyle signed into law 2009 Act 161, which adopts the federal Internal Revenue Code changes allowing Wisconsin residents to convert a tradition IRA to a Roth IRA, regardless of their income. The bipartisan legislation was supported by the State Bar’s RPPT and Taxation Law sections.
Act 161 also adopts the federal defined contribution plan and IRA contribution limits for 2011. Without this change, Wisconsin’s contribution limits would have reverted to those in effect in 2001.
The State Bar’s Public Interest Law Section continued to support legislation to regulate payday loan operations. On the last day of the session in April 2010, the Assembly and Senate concluded work on Senate Bill 530, which imposes various regulations on the payday loan industry for the first time. Gov. Doyle signed the bill into law on May 18, 2010 as 2009 Act 405. The section supported the bill, although it does not contain the interest rate cap favored by the section. Another payday loan bill the section supported, Assembly Bill 392, would have capped payday loan interest rates at 36 percent on an annual percentage rate basis. However, that bill died in committee.
In January 2010, the State Bar’s Litigation Section saw final passage of Senate Bill 182, which increased the statute of limitations for bringing an action for an intentional tort from the current two years to three years. On Feb. 11, 2010 Gov. Doyle signed Senate Bill 182 into law as 2009 Wisconsin Act 120. Introduced by Senator Jim Sullivan and Representative Kelda Helen Roys (both members of the State Bar), the legislation conforms the statute of limitations for intentional torts to the three-year statute of limitations that applies to negligent torts.
Several sections saw final action at the end of the legislative session on other bills that they supported in principle. The Business Law Section supported Senate Bill 286, which exempts health care billing agencies from the statutory definition of a collection agency. Gov. Doyle signed the bill into law on May 18, 2010, as 2009 Wisconsin Act 404.
The RPPT Section supported Senate Bill 348, relating to marina condominiums, as well as Senate Bill 507, which changes fees collected by a register of deeds, provides for redaction of social security numbers from electronic documents and makes changes to the land information system. Gov. Doyle signed both bills into law on May 12 and 13, 2010 as 2009 Wisconsin Acts 352 and 314, respectively. The RPPT Section also supported Assembly Bill 260, related to extraterritorial plat approval based on use, which Gov. Doyle signed into law on May 18, 2010 as 2009 Act 399.
The Children and the Law Section supported Senate Bill 375, related to the exchange of electronic records in CCAP and the statewide automated child welfare information system. Gov. Doyle signed that bill into law on May 13, 2010 as 2009 Wisconsin Act 338.
Finally, the Individual Rights and Responsibilities (IRR) Section successfully fought against passage of Assembly Bill 511 and Senate Bill 336, which for the first time in Wisconsin would have permitted the collection of DNA samples from persons when they are arrested for felonies. Current law requires the collection of DNA samples from persons convicted, not just arrested, for felonies. The bill died in committee when the Legislature adjourned.
Fall session also ended with several section victories
Prior to the flurry of legislative activity this spring, several lobbying sections had already seen some key legislative objectives achieved last year by the time the Legislature wrapped up its autumn session in November 2009.
The State Bar’s Criminal Law Section actively supported a trio of bills which make various changes to the rules of appellate procedure. In June 2009, Gov. Doyle signed into law 2009 Acts 25, 26 and 27. All three acts, which were introduced at the request of the Judicial Council and drafted with its assistance, took effect on Nov. 1, 2009.
The RPPT Section supported legislation leading to the enactment of 2009 Act 4, which reversed a 2008 Wisconsin Supreme Court decision by restoring a legal remedy available to homebuyers for intentional misrepresentations made by sellers concerning the condition of their property. Act 4 reverses Below v Norton (2008 WI 77) by providing that, in addition to any other remedies that are available, a buyer in a residential real estate transaction may maintain an action in tort against the seller for fraud committed, or an intentional misrepresentation made, by the seller in a residential real estate transaction.
The RPPT Section also actively supported passage of legislation – signed by Gov. Doyle in July 2009 as 2009 Act 33 – which updates prudence standards that govern the management and investment of funds held by institutions exclusively for charitable purposes. Act 33 implements changes to the Uniform Management of Institutional Funds Act (UMIFA) recommended by the National Conference of Commissioners on Uniform State Laws in 2006. The legislation essentially replaces UMIFA, which was incorporated into Wisconsin law in 1976, with the Uniform Prudent Management of Institutional Funds Act. The new act applies to funds held by institutions exclusively for charitable purposes.
In addition, the Indian Law Section as well as the State Bar’s Children and the Law Section saw successful completion of legislative action on Senate Bill 288, which codifies in state law the federal Indian Child Welfare Act. Gov. Doyle signed SB 288 into law on Dec. 7, 2009 as 2009 Wisconsin Act 94.
Finally, the IRR Section saw one of its key legislative objectives achieved: passage of legislation (2009 Wisconsin Act 20) which, for the first time, creates a private right of action for compensatory and punitive damages for victims under several different state anti-discrimination statutes.
State Bar section activities regarding legislation and lobbying are coordinated by the State Bar’s government relations team. Continue to monitor WisBar.org and visit the State Bar’s Government Relations page for updated information on this legislation.
The State Bar of Wisconsin establishes and maintains Sections for carrying on the work of the association, each within its proper field of study defined in its bylaws. Each Section consists of members who voluntarily enroll in the Section because of a special interest in the particular field of law to which the Section is dedicated. Section positions are taken on behalf of the Section only.
These Section positions have not been approved by the Board of Governors of the State Bar of Wisconsin and are not the views of the State Bar as a whole. They are those of the Section alone.
Related articles:
Governor expected to sign insurance regulation legislation regarding annuity suitability and life settlement policies - May 5, 2010
State Bar celebrates the end of a victorious 2009-10 legislative session - April 27, 2010
Legislature addresses ambiguity caused by one-year repeal of federal estate taxes - April 23, 2010
Legislative activity on insurance regulation: Annuity suitability and life settlements of policies– April 7, 2010
Governor signs legislation on IRA conversion and retirement contribution changes - March 19, 2010
Uniform Power of Attorney legislation advances - March 8, 2010
One-year repeal of federal estate taxes creates ambiguity - February 19, 2010
Legislature to consider durable power of attorney law update - January 27, 2010
State Bar sections gear up for end-of-session rush - December 1, 2009
Public Interest Law Section advocates payday loan interest limits – Oct. 12, 2009
State Bar anticipates busy fall legislative session – Sept. 8, 2009
Wisconsin Lawyer: 9 Wisconsin Act 20: Changes to Wisconsin’s Fair Employment Law – Sept. 1, 2009
UPMIFA passes both houses, awaits signature from governor – July 8, 2009
Three bills amending and clarifying appellate procedures signed into law – June 26, 2009
IRR Section Fights for Victims of Illegal Employment Discrimination – April 22, 2009
New law restores a consumer safeguard for Wisconsin homebuyers – April 22, 2009
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