AP8 SB1: Bill Text

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, regardless of whether they act in conjunction with or independently of any candidate who is supported or opposed. This bill requires each individual who or organization which receives donations or other income and makes expenditures which, in the aggregate, exceed $1,000 within a calendar year in amount or value for the purpose of publishing, broadcasting or disseminating a communication which includes the name or likeness of a candidate for state or local office at a primary or other election within 30 days of that election, 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 or other income received and expenditures made to the same extent as currently required for individuals who or organizations which attempt to influence elections. If expenditures made by such an individual or organization with respect to one or more candidates for state office exceed $20,000 within a calendar year, they must be reported electronically within 24 hours of the time they are made.

The bill also provides that if one or more individuals or organizations make expenditures which, in the aggregate, exceed 5% of a candidate's disbursement limitation in either the primary or the election campaign period, calculated separately, for the purpose of publishing, broadcasting or disseminating communications which include the name of likeness of that candidate or any opponent of that candidate through one or more communications media or through a telephone bank operator, the disbursement limitation and self-contribution limitation otherwise applicable to that candidate do not apply after the date on which those expenditures exceed that level. In addition, the limitations on contributions by individuals and committees to that candidate and his or her opponents are doubled and the limitations on contributions by political party committees to that candidate and his or her opponents are removed after the date on which those expenditures exceed that level.

Disbursement levels and limitations

Under current law, disbursement (expenditure) levels are specified for candidates for various state and local offices. These levels become a binding limitation upon any candidate for state office who accepts a state grant from the Wisconsin election campaign fund or who agrees to be bound by the limitation, unless the candidate is opposed by a major opponent who could have qualified for a grant but declines to accept one.

The bill revises the current disbursement levels applicable to candidates for the offices shown in the following chart: - See PDF for table

The bill also creates a biennial adjustment which causes the statutory disbursement levels to be adjusted biennially, beginning in 1999, in accordance with the rate of increase or decrease in the "consumer price index" determined by the U.S. department of labor, with the result in turn adjusted by the rate of increase or decrease in the voting age population of this state, as determined by the federal election commission.

Currently, no candidate for state or local office may accept contributions from sources other than individuals which, in the aggregate, total more than 65% of the disbursement level specified for the office which the candidate seeks. This bill provides, in addition, that of the total disbursements made by a candidate for state or local office, not more than 65% may be derived from sources other than contributions received by the candidate from individuals.

Contribution limitations

The bill changes contribution limitations applicable to committees making contributions to candidates for the office of governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent of public instruction, justice of the supreme court, state senator or representative to the assembly per campaign, as follows: - See PDF for table

The bill also prohibits any special interest ("political action") committee from making a contribution exceeding $100 to any other special interest committee, and similarly prohibits any conduit (intermediary) from transferring a contribution exceeding $100 to any special interest committee. In addition, the the bill prohibits a candidate or his or her personal campaign committee from making a contribution to another candidate or personal campaign committee or to a political party, except a contribution not exceeding $100 that is utilized for the purpose of financing the actual costs of an event. Currently, there are no similar limitations.

Currently, each contribution received by a candidate who is a candidate in successive elections must be charged against the contribution limitation applicable to the contributor for the previous campaign of that candidate or the future campaign of that candidate, in accordance with a methodology specified by law. A candidate may, however, end a campaign with a surplus of money legally contributed to the candidate during that campaign and apply that surplus towards a future campaign for office. Under this bill, if a candidate ends a campaign with a surplus of money in his or her campaign depository account, and the candidate thereafter becomes a candidate at a future election, the unencumbered moneys in his or her campaign depository account at the end of the previous campaign, less any earnings, are allocated to the contribution limitations applicable to the candidate's campaign in the future election in the inverse order in which they were received by the candidate.

Form of contributions made by negotiable instruments

Currently, each contribution of money exceeding $50 must be made by check or other negotiable instrument or evidenced by an itemized credit card receipt bearing on the face the name of the remitter. Contributions may be collected by an intermediary and transferred to a recipient at the same time (a practice referred to as "bundling"). The recipient must report the amount of each contribution and the date on which the contribution is received by the recipient. If the contributor is subject to a registration requirement, the contributor must also report this information. If the contributor determines the amount of the contribution and the recipient, the contribution is considered to be made by the contributor; if the intermediary determines the amount of the contribution or the recipient, the contribution is considered to be made by the intermediary.

This bill requires each contribution made by means of a check or other negotiable instrument that is transferred from the contributor to the recipient by another person, together with one or more additional contributions made by negotiable instruments, to show on the face of the instrument the date that the contribution is made, the amount of the contribution and the name of the intended recipient. Under the bill, this information must be entered by the contributor at the time that the instrument is transferred. The bill prohibits any person from entering or changing a date that such a contribution is made so as to indicate a date other than the date of that transfer.

Conduit contribution procedure

Currently, if an individual or organization receives a political contribution consisting of money and transfers the contribution to another individual or organization without exercising discretion as to the amount to be transferred and the individual to whom or the organization to which the transfer is to be made, the contribution is considered to be made by the original contributor for purposes of reporting by the ultimate recipient. The contribution is also treated as an individual contribution for purposes of determining contribution limitations and qualifying contributions for public grants. The individual or organization making the transfer is called a "conduit" under the law. A conduit must identify itself to the ultimate recipient as a conduit and provide to that recipient the information about the contribution which is necessary for the recipient to file its campaign finance reports.

This bill requires each person who transfers a contribution of money to a conduit to make a written direction, on a form prescribed by the elections board, specifying clearly the name of the intended recipient, the amount of the contribution and the date on which the contribution is made. Each item of information on the form must be entered by the contributor. A conduit receiving a form must retain the form with its records for 3 years after the date of the election in connection with which the contribution identified on the form is made. The bill prohibits any person from entering or changing a date that a contribution is made on such a form so as to indicate a date that a contribution is made other than the actual date.

Currently, the recipient of a contribution of money must deposit the contribution in the recipient's campaign depository account no later than 5 business days after receipt of the contribution. A conduit who or which deposits a contribution of money is considered to receive and accept the contribution. A contribution must be reported by the recipient as received and accepted on the date received unless it is returned to the contributor or donated within 15 days of receipt.

This bill provides that each conduit who or which receives a contribution of money must transfer the contribution to the recipient specified by the contributor within 5 days of the date on which the contribution is received by the conduit. Under the bill, the contribution must be deposited no later than the time it is transferred.

Transfer of campaign surpluses for use in campaigns for different offices

Currently, a candidate, personal campaign committee of a candidate, former candidate or former personal campaign committee may make a contribution or disbursement for any political purpose not prohibited by law, and specifically may transfer money or property to another candidate or personal campaign committee, subject to applicable contribution limitations. If a candidate for one office becomes a candidate for another office, that candidate or his or her personal campaign committee may use money or property received on his or her behalf when the candidate was a candidate for the first office, without limitation. In addition, if the personal campaign committee of a former candidate files an oath affirming its independence from any candidate, the committee may make disbursements in an unlimited amount to advocate the election or defeat of any candidate.

This bill provides that no candidate, personal campaign committee, former candidate or personal campaign committee of a former candidate may make a contribution to another candidate or personal campaign committee. The bill also provides that no individual who is a candidate for any office, personal campaign committee of such a candidate, former candidate or former personal campaign committee of a candidate may make a disbursement for the purpose of influencing the election or nomination to election of that candidate or any other individual who is a candidate for any office from money or property that was received by or on behalf of the candidate or former candidate when he or she was a candidate for another office. In addition, the bill prohibits the former personal campaign committee of a candidate which files an oath affirming its independence of any candidate from making a contribution or disbursement to advocate the election or defeat of a candidate that is derived in whole or in part from contributions received by that committee prior to the date on which the committee files that oath.

Treatment of legislative campaign committees

Currently, the adherents of any political party in either house of the legislature may organize a "legislative campaign committee" to support the candidacy of members of their party for legislative office. Committees other than legislative campaign committees and political party committees are generally subject to a limitation upon the contributions that they may make to candidates for legislative office or to political parties. Legislative campaign committees are subject only to overall limitations on the aggregate contributions that may be accepted by a candidate from entities other than individuals.

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.

Public grants

Under current law, public financing from the Wisconsin election campaign fund is available to finance certain campaign expenses of 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 at the general election. In order to qualify for a grant from the Wisconsin election campaign fund, a candidate for state office at the general election must, in addition to other requirements, receive at least 6% of the total vote cast for the office which the candidate seeks at the September primary. Currently, the maximum amount of the grant that a candidate for state office may receive from the Wisconsin election campaign fund is that amount which, when added to the total amount or value of contributions received by the candidate from sources other than individuals or political party committees, equals 45% of the disbursement level applicable to candidates for the office which the candidate seeks, provided that there are sufficient moneys in the Wisconsin election campaign fund to make payment of the full amounts of the grants for which candidates qualify.

This bill renames the Wisconsin election campaign fund to be the "Wisconsin clean election system fund". In lieu of the current formula for determining maximum grant amounts, the bill establishes fixed maximum initial grant amounts. The bill also provides that a candidate who accepts a grant may receive an increased grant from moneys that were allocated for other candidates who could have qualified for grants but who decline to accept them. Under the bill, the maximum initial amount of the grant that a candidate for state office may receive from the Wisconsin clean election system fund is as follows: - See PDF for table

Under the bill, if a candidate is bound by a disbursement limitation and by a limitation on the total contributions which the candidate may accept from political party committees, the total amount of the grant that the candidate may receive may not exceed that amount which, when added to the total contributions accepted by the candidate from all sources other than individuals, equals 65% of the candidate's disbursement limitation.

The bill also creates a biennial adjustment which causes the statutory maximum initial grant amounts to be adjusted biennially, beginning in 1999, in accordance with the rate of increase or decrease in the "consumer price index", as determined by the federal department of labor, with the result in turn adjusted by the rate of increase or decrease in the voting age population of this state, as determined by the federal election commission.

Currently, if a candidate for a partisan state office accepts a public grant and has an opponent who also could have qualified to receive a grant but declines to accept one, the candidate is not bound by his or her disbursement limitation. Similarly, if a candidate for a nonpartisan state office accepts a grant and has an opponent who declines to accept a grant, that candidate is not bound by his or her disbursement limitation. However, in either case, if each opponent who declines to accept a grant files with the elections board an affidavit of voluntary compliance with the disbursement limitation applicable to candidates for the office which the candidate seeks, the disbursement limitation for the candidate who accepts a grant continues to apply. This bill deletes the exception which retains the disbursement limitation of a candidate if an affidavit is filed by each of his or her opponents.

Currently, if a candidate who could have qualified to receive a public grant fails to qualify, the grant moneys otherwise available to that candidate become available to other qualifying candidates for the same office as the office sought by the nonqualifying candidate. This bill provides that if a candidate for a partisan executive state office (governor, lieutenant governor, attorney general, secretary of state or state treasurer) could have qualified to receive a grant but fails to qualify, the moneys otherwise available to that candidate are redistributed to all qualifying candidates for partisan state executive offices, in addition to the maximum initial grant amounts, in the same proportion as the initial amounts of their grants bear to the total amount of grants distributed to all qualifying candidates for partisan state executive offices, subject to applicable aggregate contribution and disbursement limitations. The bill also provides that each candidate for a nonpartisan state office receives only 50% of the moneys available to finance grants for that office, regardless of whether his or her opponent qualifies to receive a grant, but provides for 50% of the moneys otherwise available to nonqualifying candidates for nonpartisan state offices (justice of the supreme court and superintendent of public instruction) to be redistributed to all qualifying candidates for nonpartisan state offices, in addition to the maximum initial grant amounts, in the same proportion as the initial amounts of their grants bear to the total amount of grants distributed to all qualifying candidates for nonpartisan state offices. Under the bill, the maximum total grant which a candidate may receive, when added to the total contributions received by the candidate from sources other than individuals, may not exceed 65% of the disbursement level applicable to candidates for the office which the candidate seeks, provided that there are sufficient moneys in the Wisconsin clean election system fund to make payment of the full amounts of the grants for which candidates qualify.

Currently, any grant moneys that are not encumbered by a candidate on the day after an election in which the candidate participates revert to the state. In addition, any deposits and refunds derived from grant moneys that are received by a candidate after the date of an election in which the candidate participates revert to the state. This bill provides, instead, that all unencumbered moneys in the campaign depository account of a candidate who receives a grant on the day after an election in which the candidate participates plus all deposits and refunds received by such a candidate after that date, revert to the state to the extent that the unencumbered moneys, together with the deposits and refunds, do not exceed the amount of the grant received by that candidate.

Penalties for violations

Currently, any person who violates any provision of the campaign finance law, except a contribution prohibition, is subject to a forfeiture (civil penalty) of not more than $500 for each violation. This bill increases this amount to $1,500. In addition, currently, any person who is delinquent in filing a report is subject to a forfeiture of not more than $50 or 1% of the annual salary of the office for which a candidate is being supported or opposed, whichever is greater, for each day of delinquency. This bill increases these amounts to a maximum of $150 or 3% of the annual salary, whichever is greater. Currently, any person who makes an unlawful contribution is subject to a forfeiture of treble the amount of the unlawful contribution. This bill increases this amount to 9 times the amount of the unlawful contribution.

Currently, whoever intentionally violates certain provisions of the campaign finance law, such as registration requirements, contribution limitations, the prohibition against making contributions in the name of another person, the prohibition against using contributions for most nonpolitical purposes and the prohibition against filing false reports and statements may be fined not more than $1,000 or imprisoned for not more than 6 months, or both, if the violation does not exceed $100 in amount or value, and may be fined not more than $10,000 or imprisoned for not more than 3 years, or both, if the violation exceeds $100 in amount or value. This bill increases these amounts to a maximum fine of $3,000 or imprisonment for not more than one year, or both, if the violation does not exceed $100 in amount or value, and a maximum fine of $30,000 or imprisonment for not more than 9 years, or both, if the violation exceeds $100 in amount or value.

Public funding of campaigns for county and 1st class city offices

The bill permits counties and 1st class cities to provide by ordinance for appropriations to pay for lawful campaign expenses of candidates for county and city offices, subject to reasonable qualifications and agreements by candidates to adhere to disbursement and self-contribution limitations. Under the bill, any such ordinance may prescribe civil penalties for violations of the ordinance or an agreement entered into under the ordinance not exceeding the amount that would apply to a violation of the state campaign finance law. The bill also directs the elections board to review the operation of any such ordinance and provide its recommendations, if any, concerning extension of a similar system of public funding to other campaigns for local elective offices in this state to the appropriate legislative standing committees.

Currently, counties have no such authority. Cities may have such authority under constitutional home rule powers if an enactment of this nature is considered to be a "local affair".

Composition of the elections board

Currently, the elections board consists of 8 members appointed by the governor for 2-year terms without senate confirmation. One member is selected by the governor and one member each is designated by the chief justice of the supreme court, the speaker of the assembly, the senate majority leader, the minority leader in each house of the legislature, and the chief officer of each political party qualifying for a separate ballot or column on the ballot whose candidate for governor received at least 10% of the vote in the most recent gubernatorial election.

The bill recreates the board to consist of 8 members appointed by the governor for staggered 4-year terms. One member is selected by the governor and one member each is designated by the speaker of the assembly, the senate majority leader and the minority leader in each house of the legislature. Three additional nonpartisan members are appointed by the governor, subject to senate confirmation. Under the bill, no nonpartisan member may hold any other office or employment in the government of this state or any political subdivision thereof or in any department of state government. In addition, no nonpartisan member, for one year immediately prior to the date of appointment, may have been, or while serving on the board may become, a member of a political party, an officer or member of a committee in any partisan political club or organization or a candidate for any partisan elective public office. Under the bill, the members of the current board serve until all of the members of the board who are appointed under the bill qualify for office, at which time the current members are replaced.

Determinations concerning application of election laws

Currently, any interested person may request a written opinion from the elections board concerning the person's authority or responsibilities under the election laws. The board may provide the opinion. No person acting in good faith upon such an opinion is subject to prosecution for so acting, if the material facts are as stated in the opinion request. Also, currently, any interested person may petition the elections board under the state administrative procedure act for a "declaratory ruling" concerning the applicability to any person, property or facts of any election law or rule of the board. The board may issue the ruling, and is thereafter bound by its decision if the facts are as stated in the petition. The declaratory ruling may be reviewed in court. In addition, currently, any elector of a jurisdiction may contest before the elections board the decision of any election official of that jurisdiction with respect to certain specified matters or the board may, on its own motion, investigate and determine whether an election official is acting in conformity with the law concerning one of those specified matters. The decision of the board may be reviewed in court.

This bill establishes, in addition to these procedures, a new procedure whereby any person may file a petition requesting a ruling concerning the application of the election laws or rules of the elections board to a particular person or set of facts described in the petition. The division of hearings and appeals of the department of administration designates a hearing examiner, to be known as an "election examiner", to rule upon the petition. If the petition concerns a question as to whether an election official or a private person is acting in conformity with the law or rules of the board, that official or private person must be made a party to the proceeding. The election examiner must issue a decision, unless the examiner decides, upon motion of an opposing party, that the petition is clearly without merit. The election examiner may order an election official or private person to act in conformity with the election laws or rules of the board, but may not impose a penalty for an alleged violation. The decision of the election examiner may be appealed to the board. In deciding the appeal, the board is not bound by any findings of fact or conclusions or law made by the examiner with respect to the matter. The procedure does not apply to any matter in which the action or inaction of the board or its executive director is contested, nor to any matter arising in connection with a recount. The bill directs the elections board to periodically examine and review decisions issued under the procedure with a view to clarifying and improving the administration of the election laws.

Biennial review of campaign finance practices

The bill directs the elections board to conduct a biennial review of campaign finance practices in this state. The review must include an assessment of the continued appropriateness of the contribution limitations prescribed by law and any other important problems that require the attention of the legislature, as well as an assessment of whether a bipartisan committee should be created to provide for additional study of issues and recommendations for possible additional legislative changes. If the board concludes that any contribution limitations should be increased or that any other action should be taken as a result of its review, the board is directed to transmit its conclusions and recommendations to the appropriate standing committees of the legislature, together with any information supporting the board's conclusions.

Study of campaign finance law enforcement

The bill requests the joint legislative council to review the process for detecting and penalizing violations of the state campaign finance law, with a view to detecting violations quickly and punishing violators firmly, and to report its findings, conclusions and recommendations, together with any proposed legislation, to the 1999 legislature when it convenes.

Future study of campaign finance reform

Currently, the governor may create nonstatutory committees to provide advice concerning policy formation. The bill directs the governor, in cooperation with the legislature, to exercise this existing authority to create a committee to study campaign finance reform whenever changing electoral dynamics and campaign finance technology demand such action. The bill further directs the joint committee on legislative organization, in cooperation with the governor, to propose the creation of such a committee whenever those conditions arise.

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:

SB1, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

SB1,14,4 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).

SB1, s. 2 Section 2. 5.02 (18) of the statutes is amended to read:

SB1,14,9 5.02 (18) "September primary" means the primary held the 2nd Tuesday in September to nominate candidates to be voted for at the general election , and to determine which candidates for state offices other than district attorney may participate in the Wisconsin election campaign fund.

SB1, s. 3 Section 3. 5.065 of the statutes is created to read:

SB1,14,12 5.065 Determinations concerning application of election laws. (1) In this section:

SB1,14,14 (a) "Division" means the division of hearings and appeals of the department of administration.

SB1,14,16 (b) "Election official" includes the board and any board of election commissioners under s. 7.20.

SB1,14,22 (2) Any person may file a petition with the division requesting a decision concerning the application of the election laws or rules of the board to a particular person or particular set of facts described in the petition. The division shall issue a decision based upon any facts described without regard to the correctness of those facts. A decision of the division applies only with respect to the material facts described in the petition requesting the decision.

SB1,15,4 (3) If the petition concerns a question as to whether an election official or a private person is acting in conformity with the law or rules of the board, the matter shall be treated as a contested case, the petitioner shall serve a copy of the petition upon that official or private person and that official or private person shall be a party to the case. An election official or private person may move to dismiss the petition if it is clearly without merit. If the division finds, in response to a motion, that a petition is clearly without merit, it shall dismiss the petition.

SB1,15,8 (4) In every contested case, the division shall make findings of fact and conclusions of law. The division may order an election official or a private person to act in conformity with the election laws or rules of the board, but may not impose a penalty for an alleged violation.

SB1,15,12 (5) The petitioner or any election official or private person who is a party to a contested case under this section may appeal the decision of the division to the board, which may review the decision without regard to any findings of fact or conclusions of law made by the division.

SB1,15,15 (6) A person who is not a party to a case under this section is not bound by any decision in that case. The decision of the board in any contested case arising under this section is subject to review as provided in s. 227.57.

SB1,15,17 (7) (a) This section does not apply to any matter in which the action or inaction of the board or its executive director is contested.

SB1,15,19 (b) This section does not apply to any matter arising in connection with a recount under s. 9.01.

SB1,15,22 (8) The board shall periodically examine and review decisions of the division under this section with a view to clarifying and improving the administration of the election laws of this state.

SB1, s. 4 Section 4. 7.08 (2) (c) of the statutes is amended to read:

SB1,16,6 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 the board determines to be eligible to receive payments from the Wisconsin clean election campaign system fund. The 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.