H
CAPTIOL UPDATE
NATALIE WHITE
Communications Director
After many months of development by the Joint Finance Committee, the state budget passed both houses and was signed into law by Governor Evers. Budget season is officially behind us and eyes are turning to getting bills introduced and moving legislation through the committee process. To recap, the final budget was supported on a bipartisan basis and included tax cuts for the middle class, funding for broadband infrastructure and of special importance to PIA and small businesses across the state -- funding set aside for legislation to repeal the personal property tax (PPT). Unfortunately, there were some concerns raised by the Department of Revenue that led the Governor to veto a separate bill that would have completed the PPT repeal. He has since requested that lawmakers work on new legislation that addresses the Department of Revenue’s concerns, and said that the funding set aside in the budget will remain to backfill the repeal. PIA is hopeful that legislation
can be passed to complete the PPT repeal and will continue to advocate on this important issue for members. Another piece of legislation of importance is continuing to make its way through the committee process. Senate Bill 434, relating to municipal raze orders, creates certain requirements for local governments issuing raze orders for insured property. The bill would stipulate that in order for a raze order to be issued by a municipality for an insured residential dwelling, the total damages must be over seventy percent of the insured value of the dwelling. Currently, a raze order could be issued for a dwelling if the damages are over 50% of the assessed value of the property. This creates a large issue where assessed home values are low in more rural areas of the state. Incurring damages of more than 50% of the assessed value could lead to a building being razed and the insurer is then responsible for the replacement cost of rebuilding a home, when restoring the building would have been much more practical and cost effective. SEPTEMBER/OCTOBER 2021 [ 10 ]
The bill has come forward for hearings in both the Senate Committee on Insurance, Licensing and Forestry, and the Assembly Committee on Insurance, where it was discussed for several hours. One of the major points discussed during the hearings was the concept of indemnity and how current law does not reflect indemnity when insured houses that could have been repaired are ordered to be destroyed. Discussions on the legislation are ongoing and PIA will continue to advocate for the concept of indemnity to be upheld in the industry. Lastly, PIA was pleased to attend the bill signing for the NAIC cybersecurity bill, now Wisconsin Act 73, in July. This legislation sets cybersecurity requirements that will protect our members, their clients and confidence in the insurance industry. PIA is pleased to have aided in its passage. Continue to read our legislative updates in the Wisconsin Professional Agent and our blog at piaw.org.
