MON AM News: Group of landlords challenging DATCP landlord, tenant administrative codes; Study explores metro areas’ post-COVID recovery

— A group of southeastern Wisconsin landlords wants to suspend several administrative codes that govern how they interact with tenants, while opponents argue the code is the law.  

In a brief filed recently in Waukesha County Circuit Court, the landlords argue the Department of Agriculture, Trade and Consumer Protection codes are unconstitutionally vague, while another related to voiding rental contracts exceeds the state agency’s authority. 

The plaintiffs include five landlords and one prospective landlord that manage properties in the Waukesha and Milwaukee areas. DATCP and the state Department of Justice are listed as defendants.

But Community Justice attorney Carousel Bayrd told WisPolitics the codes being challenged are word for word what the Legislature wrote in landlord and tenant law. 

Chapter 704 cross references Chapter ATCP 134. She said if those suing have a problem with the code, they have a problem with the written statute, and they cannot blame DATCP for using the Legislature’s writing. 

“Much of the administrative code that they’re challenging is verbatim what’s in the Wisconsin statutes,” Bayrd said. 

Kareem Bearden, a commercial truck driver who owns two rental units in Milwaukee, says the codes are confusing and make it difficult to act as an effective property manager. In a recent interview, he noted all the rental income from the duplex goes toward his elderly mother’s medical expenses. 

“Personally, I’m just trying to make sure I’m still able to, you know, feed and take care of my family, my mother and everything,” he said. “And I don’t want to risk the chance of … doing anything unlawful.” 

He and the other plaintiffs are seeking a temporary injunction of certain DATCP regulations as the case proceeds. These are related to landlords’ ability to withhold money from a security deposit, how security deposit withholding statements are organized, and when and for how long landlords are allowed to enter a tenant’s dwelling, according to the brief. Plus, the brief argues the agency has no authority to render rental contracts “void and unenforceable” under a separate code.

One section points to a DATCP code that bars landlords from withholding part of a renter’s security deposit to pay for “normal wear and tear” or other damages or losses “for which the tenant cannot reasonably be held responsible” under applicable law. It argues the way the code is worded is “impermissibly vague,” making it difficult for landlords to know what they’re allowed to withhold.

Bayrd argued other codes being challenged as unclear don’t seem unclear at all. They’re really just establishing guidelines for what is reasonable as far as a landlord’s right to entry and other possible issues between landlords and tenants, she said. 

DATCP is not acting beyond the scope of the Legislature because the codes are verbatim what the Legislature has already allowed in Chapter 704, she argued. 

Ryan Walsh, an attorney in the Madison office of law firm Eimer Stahl LLP, is one of the lawyers representing the plaintiffs. 

“The problem here is, these aren’t just civil regulations,” he said in an interview. “These are regulations that come with criminal penalties.” 

He explained most criminal laws include a “mental state” requirement, such that someone can’t be found liable unless he or she intended to do something wrong, or was reckless or otherwise considered blameworthy. In contrast, these DATCP regulations “have no mental state requirement whatsoever,” meaning the crimes they cover are “what we call strict liability crimes,” he said. 

According to Walsh, even with the “best lawyer in the world” advising on how to handle a particular tenant situation, the state could later decide actions taken by the landlord weren’t necessary. 

“They can now charge you with a crime punishable [by] up to a year in jail,” he said. “That means, under the constitution, under the due process clause, if they want to use that authority, they have to be extremely specific about what you have to do and what you must not do.” 

The brief argues the DATCP codes don’t meet that standard. If successful, the lawsuit would ultimately result in a permanent injunction, Walsh said. 

“All that we’re asking is that we, others in the state, not be held strictly liable under criminal laws for what are essentially good faith acts,” he added. “Kareem is trying to do the right thing. Our other plaintiffs are trying to do the right thing.” 

A hearing on the motion for temporary injunction is scheduled for Sept. 25, Walsh said. 

See the brief: https://www.wisbusiness.com/wp-content/uploads/2023/08/2023.07.11-004-Pls-Brief-iso-Motion-for-TI.pdf 

See Bearden’s affidavit: https://www.wisbusiness.com/wp-content/uploads/2023/08/2023.07.11-010-Affidavit-of-K.-Bearden.pdf 

— Downtown foot traffic in Milwaukee has recovered to 78 percent of its pre-pandemic levels, according to a study from the University of Toronto. 

The university’s School of Cities analyzed cell phone data across dozens of U.S. and Canadian metropolitan areas for the study. 

Researchers counted the number of unique mobile phone numbers in a given city’s downtown area in a certain period, then dividing that figure by the number of visitors during the comparable time period of 2019. 

Only four of the 63 metro areas included in the study had a “recovery metric” over 100 percent: Salt Lake City, Utah; Bakersfield, Calif.; Fresno, Calif.; and El Paso, Texas. All others were at 93 percent or lower. 

Milwaukee was ranked 16th — the third highest among Midwest cities on the list, after Columbus, Ohio with 89 percent and Omaha, Neb. with 82 percent. By comparison, Chicago was ranked 45th with a 52 percent recovery metric. 

See the full study here: https://downtownrecovery.com/charts/rankings 

— Marquette University has been awarded a $3.8 million federal grant for a number of water technology research projects. 

The Milwaukee-based university recently announced its second two-year grant from the U.S. Department of Defense for an ongoing effort called “In Defense of Water.” According to a release, the first award came in late 2021. 

Jeanne Hossenlopp, the university’s vice president for research and innovation, says the newly announced funding expands the scope and reach of its water research efforts. 

Working alongside the U.S. Army Engineer Research and Development Center, researchers will be working to “address critical water infrastructure and community risk and resiliency issues of importance to both military and civilian populations,” she said in a statement. 

Seven research project areas are being pursued, ranging from the effects of disinfectant on pathogens to PFAS mitigation and how water chemistry affects metal pipes.

See the release: https://www.marquette.edu/news-center/2023/marquette-awarded-second-3-8-million-department-of-defense-grant-for-in-defense-of-water-project.php 

<br><b><i>Top headlines from the Health Care Report…</b></i> 

— The U.S. Department of Labor in a lawsuit charges a Wausau-based medical insurance claim administrator improperly denied claims for emergency room visits and urinary drug screenings for 2,136 self-funded employee health plans.

Meanwhile, a Montana-based provider of mental health care for young people called Charlie Health has expanded into Wisconsin. 

<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i> 

Sign up here: http://forms.gle/o8FtqTLviGJPja8C9

#TOP STORIES#

# UW Badgers to sell beer, wine and hard seltzers during basketball and hockey games in Madison

https://www.tmj4.com/news/local-news/uw-badgers-to-sell-beer-wine-and-hard-seltzers-during-basketball-and-hockey-games-in-madison

# Evers vetoes bills that would prevent local bans on gas-powered cars, appliances and energy

https://www.wpr.org/evers-veto-bills-prevent-local-bans-gas-powered-cars-appliances-energy

# New language app Sygmatic throws users in ‘the deep end’ to get fluent

https://captimes.com/news/business/new-language-app-sygmatic-throws-users-in-the-deep-end-to-get-fluent/article_38fb51cb-062d-5a6f-ae03-fcfdf52cbce1.html

#TOPICS#

# AGRIBUSINESS

– Fewer farms mean fewer farm kids to to show Wisconsin’s dairy cattle

https://lacrossetribune.com/news/state-and-regional/cows-state-fair-west-allis-iowa-county/article_b097325f-feb7-5cf9-841a-73fe7545d603.html

– Preparing for foreign animal disease outbreak in swine production

http://wisconsinagconnection.com/story-state.php?Id=741&yr=2023 

– American Cheese Society names Prairie Farms cheese winners

http://wisconsinagconnection.com/story-state.php?Id=739&yr=2023 

# CONSTRUCTION

– Milwaukee Repertory Theater’s multimillion-dollar construction project will start in May of 2024

– UW-Madison building projects: 5 to watch

https://captimes.com/news/education/uw-madison-building-projects-5-to-watch/article_37739160-70c1-570c-b43b-541c0f2e81fd.html

# HEALTH CARE

– Wisconsin’s ‘death grip with alcohol’ is killing more residents

https://www.jsonline.com/story/news/local/wisconsin/2023/08/04/wisconsins-death-grip-with-alcohol-is-killing-more-residents/70523820007/

– Opioid settlement funds help provide Narcan for Wisconsin law enforcement officers

https://www.channel3000.com/news/opioid-settlement-funds-help-provide-narcan-for-wisconsin-law-enforcement-officers/article_7945b8e4-3263-11ee-98f7-a3e72d583221.html

# LEGAL

– Former residents file lawsuits against Lydell apartment complex owners

– Bayshore developer faces lawsuits over apartments evacuated for elevated TCE levels

https://www.bizjournals.com/milwaukee/news/2023/08/04/bayshore-developer-lawsuits-apartments-evacuated.html

# MANAGEMENT

– Glenroy names new CEO, president

# MANUFACTURING

– Rockwell Automation completes exit from $1B PTC investment

https://www.bizjournals.com/milwaukee/news/2023/08/04/rockwell-automation-exits-1b-investment-in-ptc.html

– Centrisys expanding Kenosha HQ once again, launching new company

# POLITICS

– Joe Biden’s ‘Buy America’ policy on infrastructure projects leads to factory jobs in Wisconsin

https://apnews.com/article/biden-harris-internet-raimondo-factory-jobs-546af3d3bd9520b1e055dd323e8baf47

– Democrats in Wisconsin renew call for cannabis legalization after Minnesota recreational law takes effect

https://madison.com/news/state-regional/government-politics/legal-marijuana-minnesota-wisconsin/article_ca7be508-3236-11ee-a6a5-833f32951ab2.html

– Fundraising ‘on pace’ for RNC, business opportunities abound: Kellner

https://www.bizjournals.com/milwaukee/news/2023/08/04/ted-kellner-predicts-rnc-afterglow-for-milwaukee.html

# RETAIL

– What to know about the $80 million plan to redevelop De Pere Shopko

https://www.greenbaypressgazette.com/story/money/2023/08/04/de-pere-shopko-redevelopment-includes-hotel-housing-retail-parking/70478568007/

# SMALL BUSINESS

– Southeast Asian cart KC Taste brings bulgogi to the biergarten

https://captimes.com/food-drink/southeast-asian-cart-kc-taste-brings-bulgogi-to-the-biergarten/article_dfb80749-16d2-55e3-bcd4-b324dd4a4729.html

# PRESS RELEASES

<i>See these and other press releases:

http://wisbusiness.com/index.iml?Content=82 </i>

On Broadway: River & Pine Salon opens in the Broadway District

Concordia Maritime: Agreement regarding the sale of two product tankers