AB829: Bill Text

The bill eliminates the special status of legislative campaign committees, thus treating them in the same manner as other special interest committees for the purpose of contribution limitations.

Other Contribution Restrictions

The bill creates the following new prohibitions on contributions:

1. It prohibits contributions to incumbents who are seeking reelection to a partisan state office from the first Monday in January of each odd-numbered year through the enactment of the biennial budget act and, thereafter, during any floorperiod, including any special or extraordinary session floorperiod. The prohibition does not apply to contributions to an incumbent who is a candidate for state office at a special election during the period beginning on the date that a special election is ordered and ending on the date of the special election.

2. It prohibits any committee from making a contribution to any special interest or political party committee.

3. It prohibits any lobbyist from making a contribution to a partisan elective state official or candidate for a partisan elective state office or to such an official's or candidate's personal campaign committee. Currently, a lobbyist may make such a contribution in the year that an official or candidate seeks election between June 1 and the day of the general election.

Contributions through conduits

Under current law, a "conduit" is an individual or organization that receives a contribution and transfers the contribution to another individual or organization without exercising discretion as to the amount that is transferred and the individual to whom or the organization to which the transfer is made. When a conduit transfers a contribution, the conduit is required to identify itself in writing to the transferee as a conduit and to report to the transferee information about the original contributor. The conduit must include this information in its financial reports for the date on which the contribution was received and transferred. The campaign financing reports filed by the candidate identify only the original contributor, not the conduit. A contribution from a conduit is considered to be a contribution from the original contributor and, for the purpose of contribution limitations, a contribution of money received from a conduit which is properly identified and reported is considered to be a contribution received from the original contributor. Contributions received by a candidate for state office from an individual through a conduit may be used to qualify for a grant from the Wisconsin election campaign fund.

The bill requires the campaign financing reports filed by candidates to identify any conduit from whom a contribution is received, as well as the original contributor.

The bill also treats conduits in the same manner as "political action committees" by:

1. Not allowing contributions made by an individual through a conduit to be used to qualify for a grant from the Wisconsin election campaign fund.

2. Subjecting contributions from conduits to the same limitations that apply to the amount of contributions that a candidate may accept from any committee other than a political party committee.

3. Reducing the maximum grant that a candidate may receive from the Wisconsin election campaign fund by the total amount of all contributions received by the candidate through conduits.

Mass media and telephoning activities

Currently, individuals who or organizations which make or accept contributions, incur obligations or make disbursements for the purpose of influencing an election for state or local office are generally required to register with the appropriate filing officer and to file financial reports with that officer. This bill requires each individual who or organization which receives donations and makes expenditures for the purpose of publishing, broadcasting or disseminating a communication which includes the name or likeness of a candidate for state or local office by means of one or more communications media or through a telephone bank operator to register and file reports with the appropriate filing officer identifying the donations received and expenditures made to the same extent as currently required for individuals who or organizations which attempt to influence elections. If an expenditure made by such an individual or organization exceeds $1,000, it must be reported within 24 hours of the time it is made.

Persuasive telephoning

The bill requires all persons (including political committees and groups) who engage in or retain a telephone bank operator to engage in persuasive telephoning with respect to an election to disclose certain information to the appropriate filing officer or agency for campaign finance reporting purposes. The bill defines "persuasive telephoning" as "contacting, by telephone, potential voters for the purpose of presenting them with information or viewpoints which are designed to influence the attitudes of the voters toward candidates or referenda". Information that must be reported includes the name and address of the person; the name and address of any telephone bank operator who is retained; the amount paid to any such operator for the telephoning services; the total amount expended by the person to conduct persuasive telephoning; and if the person engaged in or retained an operator to engage in persuasive telephoning in more than one legislative district, the amount expended by the person within each legislative district for persuasive telephoning on behalf of each candidate or each personal campaign committee of a candidate for legislative office in that district. The bill requires the information to be reported at the same time as regular campaign finance reports are filed.

Any person who violates these provisions in respect to a telephone communication in which the caller engages in persuasive telephoning is subject to a forfeiture (civil penalty) of $1 for each communication that is subject to disclosure which the person fails to disclose in a timely manner.

Under current law, the amount paid for any telephoning services done for the purpose of influencing the election or nomination of a candidate at an election is generally subject to disclosure by the person making payment for the services, together with the name and address of the payee. The disclosure is made to the appropriate filing officer or agency on regular campaign finance reports. Violators of disclosure requirements are subject to a forfeiture of not more than $500 for each violation. Intentional violators are guilty of a misdemeanor and may be fined not more than $1,000 or imprisoned for not more than 6 months or both.

Wisconsin election campaign fund: sources and uses of funds

Under current law, the Wisconsin election campaign fund is financed through an individual income tax "checkoff". Every individual filing a state income tax return who has a tax liability or is entitled to a tax refund may direct that $1 of general purpose revenue be transferred to the fund. Individuals filing a joint return may separately choose whether to direct that the $1 transfer be made. All moneys transferred to the fund are placed in accounts for specified state offices, and candidates for those offices may qualify for grants from the fund to be used for specified campaign expenses. No moneys in the fund may be used for any other purpose.

The bill:

1. Increases the amount of the individual income tax checkoff for the Wisconsin election campaign fund from $1 to $5, effective for tax returns filed for taxable years beginning on or after January 1, 1999. Under the bill, individuals filing a joint return may separately choose whether to make the $5 checkoff.

2. Provides a sum sufficient appropriation from general purpose revenue to supplement the amounts otherwise available for campaign financing through the Wisconsin election campaign fund so as to enable all eligible candidates to receive the maximum grants for which they qualify.

Grant Eligibility Requirements and Amounts

Under current law, public financing from the Wisconsin election campaign fund is available to eligible candidates for the offices of state senator, representative to the assembly, governor, lieutenant governor, attorney general, state treasurer, secretary of state, justice of the supreme court and superintendent of public instruction. To receive a grant, a candidate must file an application with the state elections board no later than the deadline for filing nomination papers. Following the primary election or the date on which a primary would be held, if required, the board determines whether a candidate who applies for a grant meets the following eligibility requirements:

1. If the candidate seeks a partisan state office at a general election, the candidate must have received at least 6% of the total votes cast in the primary and won the primary. If the candidate seeks a partisan state office at a special election, the candidate must either: a) appear on the ballot or in the column of a political party whose candidate for the same office at the preceding general election received at least 6% of the vote; or b) receive at least 6% of the votes cast at the special election.

2. The candidate must have an opponent in the election.

3. The candidate must receive, during a specified time period, a specified amount through contributions from individuals of $100 or less. For a candidate for the office of governor, lieutenant governor, secretary of state, state treasurer, attorney general, justice of the supreme court or superintendent of public instruction, the amount is 5% of the authorized disbursement level for the office which the candidate seeks. For a candidate for the office of state senator or representative to the assembly, the amount is 10% of the authorized disbursement level for the office which the candidate seeks.

Under current law, a candidate for any office who accepts a grant must comply with statutorily prescribed contribution and disbursement limitations, unless one or more of the candidate's opponents who receive at least 6% of the votes cast for all candidates for that office at a partisan primary, if a primary was held, do not accept a grant and do not voluntarily comply with the contribution and disbursement limitations for that office. The maximum grant that a candidate may receive is that amount which, when added to all other contributions accepted from sources other than individuals, political party committees and legislative campaign committees, is equal to 45% of the authorized disbursement level for the office which the candidate seeks, if there are sufficient moneys in the Wisconsin election campaign fund to finance the full amount of grants for which candidates qualify.

The bill:

1. Provides that a candidate for the office of state senator or representative to the assembly need receive contributions equal to only 5% of the authorized disbursement level for the office which the candidate seeks in order to qualify for a grant, but provides that the contributions of $100 or less from individuals used by a candidate for any state office to determine eligibility for a grant from the Wisconsin election campaign fund must be made by individuals who reside in the state and, in the case of a candidate for legislative office, at least 50% of the contributions must be made by individuals who reside in the district in which the candidate seeks office.

2. Increases the maximum grant that a candidate may receive to that amount which, when added to all other contributions accepted from sources other than individuals and political party committees, is equal to 50% of the authorized disbursement level for the office which the candidate seeks.

3. Provides that, if a candidate for state office who accepts a grant from the Wisconsin election campaign fund is opposed by one or more candidates who do not agree to abide by the contribution and disbursement limitations for the office, the total grant available to the candidate who accepts a grant is increased by the amount of the maximum grant for the office (50% of the statutorily specified disbursement level for the office). In connection with this change and the preceding change, the bill waives the contribution limitation that applies to cumulative contributions received by a candidate from political party committees and the Wisconsin election campaign fund to enable a candidate to accept the full amount of his or her grants.

filing of campaign finance reports

Currently, with certain exceptions, registrants under the campaign finance law are required to file periodic reports with the appropriate filing officer or agency. A candidate or a committee or individual making disbursements or incurring obligations in support of or opposition to a candidate is generally required to file a report no later than the 8th day before a primary or election at which the candidate seeks nomination or election to office.

Currently, where a requirement is imposed under the campaign finance law for filing of a report by a specified date, the requirement may be satisfied by depositing the report with the U.S. postal service no later than the date provided by law for receipt of the report.

This bill also requires each candidate at the general election, and each committee or individual making disbursements or incurring obligations in support of or in opposition to a candidate at the general election, to file an additional report on the 14th day after the general election.

In addition, the bill permits satisfaction of the filing requirement only by actual receipt of a report by the board on or before the date provided by law for receipt of the report or by depositing the report with the U.S. postal service no later than the 3rd day before that date.

Initial applicability

All campaign finance changes under the bill apply to elections held on or after the day on which the bill becomes law.

Other

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to the bill.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB829, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

AB829,9,3 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 and organized exclusively for political purposes under whose name candidates appear on a ballot at any election, and all county, congressional, legislative, local and other affiliated committees authorized to operate under the same name. For purposes of ch. 11, the term does not include a legislative campaign committee or a committee filing an oath under s. 11.06 (7).

AB829, s. 2 Section 2. 7.08 (2) (c) and (cm) of the statutes are amended to read:

AB829,9,15 7.08 (2) (c) As soon as possible after the canvass of the spring and September primary votes, but no later than the first Tuesday in March and the 4th Tuesday in September, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom who the board determines to be eligible to receive payments from the Wisconsin election campaign fund. The board shall also transmit a similar list of candidates who the board determines to be eligible to receive a supplementary grant under s. 11.50 (9) (b) within 5 days after the candidates qualify to receive the grants. Each list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

AB829,9,25 (cm) As soon as possible after the canvass of a special primary, or the date that the primary would be held, if required, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom who the board determines to be eligible to receive a grant from the Wisconsin election campaign fund prior to the election. The board shall also transmit a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and whom who the board determines to be eligible to receive a grant under s. 11.50 (1) (a) 2. after the special election. The or a supplementary grant under s. 11.50 (9) (b) within 5 days after the candidates qualify to receive the grants. Each list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

AB829, s. 3 Section 3. 11.01 (5m) of the statutes is amended to read:

AB829,10,8 11.01 (5m) "Conduit" means an individual who or an organization a committee which receives a contribution of money and transfers the contribution to another individual or organization without exercising discretion as to the amount which is transferred and the individual to whom or organization to which the transfer is made.

AB829, s. 4 Section 4. 11.01 (12s) of the statutes is repealed.

AB829, s. 5 Section 5. 11.05 (3) (c) of the statutes is amended to read:

AB829,10,14 11.05 (3) (c) In the case of a committee, a statement as to whether the committee is a personal campaign committee, a political party committee, a legislative campaign committee, a support committee or a special interest committee.

AB829, s. 6 Section 6. 11.05 (3) (o) of the statutes is repealed.

AB829, s. 7 Section 7. 11.05 (9) (b) of the statutes is amended to read:

AB829,10,22 11.05 (9) (b) An individual who or a committee or group which receives a contribution of money and transfers the contribution to another individual, committee or group while acting as a conduit is not subject to registration under this section unless the individual, committee or group transfers the contribution to a candidate or a personal campaign, legislative campaign, political party or support committee.

AB829, s. 8 Section 8. 11.06 (1) (a) of the statutes is amended to read:

AB829,11,4 11.06 (1) (a) An itemized statement giving the date, full name and street address of each contributor who has made a contribution in excess of $20, or whose contribution if $20 or less aggregates more than $20 for the calendar year, together with the amount of the contribution and the cumulative total contributions made by that contributor for the calendar year and, if the contributor made the contribution through a conduit, the identity of the conduit.

AB829, s. 9 Section 9. 11.06 (2) of the statutes is amended to read:

AB829,11,14 11.06 (2) Disclosure of certain indirect disbursements. Notwithstanding sub. (1), if a disbursement is made or obligation incurred by an individual other than a candidate or by a committee or group which is not primarily organized for political purposes, and the disbursement does not constitute a contribution to any candidate or other individual, committee or group, the disbursement or obligation is required to be reported only if the purpose is to expressly advocate the election or defeat of a clearly identified candidate or the adoption or rejection of a referendum. The exemption provided by this subsection shall in no case be construed to apply to a political party, legislative campaign, personal campaign or support committee.

AB829, s. 10 Section 10. 11.06 (7m) (a) of the statutes is amended to read:

AB829,12,5 11.06 (7m) (a) If a committee which was registered under s. 11.05 as a political party committee or legislative campaign committee supporting candidates of a political party files an oath under sub. (7) affirming that it does not act in cooperation or consultation with any candidate who is nominated to appear on the party ballot of the party at a general or special election, that the committee does not act in concert with, or at the request or suggestion of, such a candidate, that the committee does not act in cooperation or consultation with such a candidate or agent or authorized committee of such a candidate who benefits from a disbursement made in opposition to another candidate, and that the committee does not act in concert with, or at the request or suggestion of, such a candidate or agent or authorized committee of such a candidate who benefits from a disbursement made in opposition to another candidate, the committee filing the oath may not make any contributions in support of any candidate of the party at the general or special election or in opposition to any such candidate's opponents exceeding the amounts specified in s. 11.26 (2), except as authorized in par. (c).

AB829, s. 11 Section 11. 11.06 (7m) (c) of the statutes is amended to read:

AB829,12,13 11.06 (7m) (c) A committee filing an oath under sub. (7) which desires to change its status to a political party committee or legislative campaign committee may do so as of December 31 of any even-numbered year. Section 11.26 does not apply to contributions received by such a committee prior to the date of the change. Such a committee may change its status at other times only by filing a termination statement under s. 11.19 (1) and reregistering as a newly organized committee under s. 11.05.

AB829, s. 12 Section 12. 11.06 (11) (c) of the statutes is amended to read:

AB829,12,17 11.06 (11) (c) A contribution of money received from a conduit, accompanied by the information required under par. (a), is considered to be a contribution from the original contributor for purposes of s. 11.26 (1) and (4).

AB829, s. 13 Section 13. 11.065 of the statutes is created to read:

AB829,12,21 11.065 Registration and reports by certain individuals and organizations. (1) (a) "Mass mailing" means the distribution of 50 or more pieces of substantially identical material.

AB829,12,23 (b) "Organization" means any person, other than an individual, and any combination of 2 or more persons.

AB829,12,24 (c) "Telephone bank operator" has the meaning given in s. 11.095 (1) (b).

AB829,13,7 (2) Any individual who or organization which receives one or more donations and makes one or more expenditures from those donations or other income for the purpose of publishing, broadcasting or disseminating a communication which includes the name or likeness of a candidate for state or local office by means of one or more communications media or a mass mailing or through a telephone bank operator shall, prior to conducting any such activity, register with the filing officer of the candidate whose name or likeness is used.

AB829,13,9 (3) A registrant under sub. (2) shall file reports with each filing officer with whom the individual or organization is registered identifying all of the following:

AB829,13,14 (a) Each donation received from a single source exceeding $20 within a calendar year, together with the amount of the donation, the date that the donation was received and accepted, the name and address of the donor and, if the amount of the donation exceeds $100 cumulatively within a calendar year, the occupation and principal place of employment of the donor.

AB829,13,18 (b) Each expenditure exceeding $20 made, together with the amount of the expenditure, the date that the expenditure was made, the name of the person to whom the expenditure was made and the specific purpose for which the expenditure was made.

AB829,13,20 (c) The total donations and other income received and accepted and total expenditures made cumulatively for the calendar year.

AB829,14,2 (4) The individual or organization shall report to the board the information required under sub. (3) in the form prescribed by the board at the time specified in s. 11.20 (2), (2m) and (4) for filing of reports by each candidate who is identified in a communication made by the individual or organization and shall include all donations received and accepted and all expenditures made as of the applicable dates specified in s. 11.20 (8).

AB829,14,7 (5) If any individual or organization under sub. (2) makes an expenditure exceeding $1,000 for the purpose of making a communication specified in sub. (2), the individual or organization shall, in addition to filing reports under sub. (3), file a special report which includes the information required under sub. (4) relating to that expenditure no later than 24 hours after the expenditure is made.

AB829,14,11 (6) An individual who or organization which determines that it will no longer receive and accept donations or make expenditures for a purpose specified in sub. (2) may file a notice of termination of its registration with any filing officer with whom the individual or organization is registered.

AB829,14,15 (7) If a registrant with the board under sub. (2) receives and accepts donations exceeding the amount specified in s. 11.21 (16) within a period specified in s. 11.21 (16), the registrant shall file reports with the board in the manner specified under s. 11.21 (16).

AB829, s. 14 Section 14. 11.09 (3) of the statutes is amended to read:

AB829,15,2 11.09 (3) Each registrant whose filing officer is the board, who or which makes disbursements in connection with elections for offices which serve or referenda which affect only one county or portion thereof, except a candidate, personal campaign committee, political party committee or other committee making disbursements in support of or in opposition to a candidate for state senator, representative to the assembly, court of appeals judge or circuit judge, shall file a duplicate original of each financial report filed with the board with the county clerk or board of election commissioners of the county in which the elections in which the registrant participates are held. Such reports shall be filed no later than the applicable dates specified under s. 11.20 (2), (2e) and (4) for the filing of each report with the board.

AB829, s. 15 Section 15. 11.095 of the statutes is created to read:

AB829,15,4 11.095 Regulation of certain telephoning activities. (1) In this section:

AB829,15,15 (a) "Persuasive telephoning" means contacting, by telephone, potential voters for the purpose of presenting them with information or viewpoints which are designed to influence the attitudes of the voters toward candidates or referenda. "Persuasive telephoning" does not include any contacts that are limited solely to an attempt to identify potential voters, to urge potential voters to participate in an election or to offer assistance to potential voters to enable them to participate in an election, or questioning a random or representative sample of a universe of potential voters in a voting jurisdiction or voting group in an attempt to infer, using standard statistical techniques and standard levels of statistical confidence, the attitudes or positions of the voters concerning candidates or issues or potential candidates or issues, or their knowledge of candidates or issues or potential candidates or issues.

AB829,15,18 (b) "Telephone bank operator" means any person who places or directs the placement of telephone calls to individuals and engages in or directs persuasive telephoning.

AB829,16,5 (2) Each individual who, or committee or group which, engages in or retains a telephone bank operator to engage in persuasive telephoning with respect to any election shall file a written report, on a form prescribed by the board, disclosing the name and address of the individual, committee or group; the name and address of any operator who is retained; the amount paid to any such operator for the telephoning services; the total amount expended by the individual, committee or group to conduct persuasive telephoning; and, if the individual, committee or group engaged in or the telephone bank operator engaged in such telephoning on behalf of the individual, committee or group in more than one legislative district, the amount expended by the individual, committee or group within each legislative district for persuasive telephoning performed on behalf of each candidate or each personal campaign committee of a candidate for legislative office in that district.