Month: September 2016

Leak of John Doe Documents Being Looked at by AG

Posted on by Hamilton

In what appears to be a targeted leak aimed at Gov. Walker, the Guardian US published sealed Wisconsin court documents from the controversial John Doe investigation. It has been reported that over six million records were seized in the politically driven investigation. The leak involved 1,350 records.

Assembly Speaker Robin Vos and other GOP leaders requested Attorney General Brad Schimel appoint a special prosecutor to “investigate this apparent violation of Supreme Court order and state law.” TheSeptember 15 letter notes that “should this potential crime go unprosecuted it runs the risk of undermining the integrity of our courts and judicial system.”

In an interview posted on September 23, Schimel noted that DOJ does not have the power to appoint a special prosecutor on its own. That authority resides in the courts, particularly the judge overseeing the John Doe.

In a related development, the Wisconsin Democracy Campaign filed a formal complaint with the IRSalleging that Wisconsin Club for Growth violated IRS regulations. The complaint alleges that the group engaged in deceptive and improper fundraising practices and that engaging in political campaigns was its “primary activity” that contravened the group’s tax-exempt status.

AG Schimel Files Complaint Against New DOL Overtime Rule

Posted on by Hamilton

On Sept. 20, Wisconsin Attorney General Brad Schimel joined a bipartisan coalition of states in filing a federal complaint against the U.S. Department of Labor’s new overtime rule. The complaint cites federal overreach by DOL and asks the court to prevent implementation of the rule before it is scheduled to take effect on Dec. 1.

The rule, released in late May, would double the salary threshold for “white collar” workers who are exempt from overtime pay from $23,660 to $47,476. According to the rule, the new threshold will automatically increase every three years. DOL estimates the threshold will be $51,168 in 2020. Once implemented, the changes would impact 4.2 million salaried workers.

Business groups say the new rule will force millions of salaried professionals to be reclassified as hourly wage workers. They argue that small businesses, nonprofits, and public sector employers will be especially hurt. The U.S Department of Labor estimates businesses will end up paying workers an additional $1.3 billion a year.

In its fact sheet explaining the rule, DOL provides businesses a “choice” under the new rule:

  1. Increase their employees’ salaries to the $47,476 threshold.
  2. Pay workers the time-and-a-half overtime premium for every hour beyond 40 per week.
  3. Limit workers to a 40-hour work week.

Some groups assert that market considerations over time will prove the paycheck benefits an illusion. To curb costs, some businesses will simply forbid employees from working over 40 hours. They may also have to cut back other expenses such as non-cash benefits or suppress the base pay itself.

Wisconsin joins 20 other states in this complaint, which was filed in Texas on Tuesday, including Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas and Utah.

Department of Justice Submits Budget Request

Posted on by Hamilton

Attorney General Brad Schimel submitted the Department of Justice (DOJ) 2017-19 budget request to Governor Walker on September 15, 2016. Including all funding sources, DOJ’s request is a 6.2 percent increase over the base fiscal year (2016-17) doubled. This increase amounts to $6.6 million in new general purpose revenue (GPR) over the biennium.

The largest cost drivers for the additional funding request are due to legislation that passed in the 2015-2016 session. 2015 Wisconsin Act 388 provided a funding increase to county grants for the Treatment Alternative and Diversion (TAD) program. The TAD program provides options for offenders for voluntary substance abuse treatment, case management, and other services, instead of incarceration. DOJ’s budget request includes $2 million in each year of the biennium to expand the TAD program.

DOJ’s budget request includes $1.5 million over the biennium for the cost-to-continue of overtime and training for local and state Internet Crimes Against Children (ICAC) taskforces. The additional investment for ICAC taskforces and staff is a result of 2015 Wisconsin Act 369, otherwise known as Alicia’s Law.

In addition to additional funding, DOJ’s request establishes an appropriation for new officer training and officer recertification training reimbursement to local law enforcement agencies. DOJ states that this change will ensure the training reimbursements are fully funded going forward.

Outside of his agency’s budget, Attorney General Brad Schimel asks in his budget letter that the governor address the staffing levels and compensation for District Attorneys. The District Attorneys submitted a separate budget request that included funding for a pay progression for assistant attorney generals and adds 96.3 positions across the state.

Supreme Court Justice Annette Ziegler Announces “Likely” Run for Second Term

Posted on by Hamilton

Wisconsin Supreme Court Justice Annette Ziegler announced she will “likely” run for re-election in April 2017. The conservative justice already claims endorsements of 48 sheriffs and 30 district attorneys.

Among others, her steering committee will include former Gov. Tommy Thompson, former Lt. Gov. Margaret Farrow, and former Wisconsin Supreme Court Justice John Wilcox. Her Sept. 20 preannouncement states that her formal announcement will be made later this year. She has over $200,000 cash in hand in her campaign account.

With Gov. Walker’s July 22 appointment of attorney Daniel Kelly, the Wisconsin Supreme Court has a 5-2 conservative majority. Justice Kelly is serving out the remaining term of former Justice David Prosser who resigned earlier this year. Kelly will face re-election in 2020. Conservative Justice Michael Gableman is next up after Ziegler, with his term expiring in 2018.

Former Chief Justice Shirley Abrahamson, initially appointed in 1976 by Gov. Pat Lucy, has her latest 10-year term ending in 2019.

Suit Challenging Wisconsin “Minimum Markup Law” Filed

Posted on by Hamilton

On Tuesday, August 23, 2016, the Wisconsin Institute for Law & Liberty (WILL) filed a lawsuit in Vilas County Circuit Court on behalf of plaintiffs Krist Oil and Robert Lotto challenging the constitutionality and legality of s. 100.30 of the Wisconsin statutes, Wisconsin’s Minimum Markup Law. Krist Oil is an independent, family-owned Michigan corporation having its principal place of business in Iron River, Michigan. Mr. Lotto is a Wisconsin citizen who regularly purchases gasoline, including gasoline from Krist Oil.

The lawsuit alleges the state’s Minimum Markup Law

(1) violates the Wisconsin Constitution’s Due Process Clause, which states “[a]ll people are born equally free and independent, and have certain inherent rights; among these are life, liberty and the pursuit of happiness,” because the law “arbitrarily and irrationally prevents Plaintiff Krist Oil from charging appropriate and non-predatory prices in connection with its business and from freely operating an otherwise lawful business in a manner that is in its own best interest and the best interest of its customers” and that “Wisconsin has no compelling, substantial, or legitimate government interest in regulating minimum prices, even prices below some measure of costs, except where such prices could result in an actual and persistent adverse effect on competition.”

(2) violates the Wisconsin Constitution’s guarantee of equal protection of the law because the law “creates irrational and arbitrary classifications. Businesses that sell gasoline must mark that product up 9.18%. Businesses that sell alcohol or tobacco must mark those products up 6%. Businesses that sell any other product only have to sell their products above “cost.” There is no rational reason for forcing retailers to sell certain products at a specified percentage above “cost” when other products do not have the same requirements. There is no reasonable basis for those classifications and they serve no legitimate government purpose.”

Matt Hauser, on behalf of the Wisconsin Petroleum Marketers & Convenience Store Association(WPMCA), expressed confidence the law will be upheld and said the law “ensures that Wisconsin’s independent petroleum retailers can continue to provide their customers with a competitively priced product.”

A spokesman for Wisconsin Attorney General Brad Schimel said the Department of Justice plans to defend the state in the lawsuit.

Under s. 100.30 of the Wisconsin statutes, sales of merchandise below cost are generally prohibited. In addition, alcohol or tobacco products may not be sold less than cost, with the definition of cost including, as paraphrased by the Department of Agriculture, Trade and Consumer protection, “a presumptive 3% markup by wholesalers and presumptive 6% markup by retailers.”  Sales of motor vehicles fuels, again as paraphrased by the Department of Agriculture, Trade and Consumer protection, “the definition of ‘cost’ relies on the ‘average posted terminal price’ and includes a 9.18% markup over this amount.”

 

Related Items:

WILL Video Overview of Lawsuit

WPMCA Press Release