AB387: Bill Text Engrossed

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2015 - 2016 LEGISLATURE

Engrossed 2015 Assembly BILL 387

October 23, 2015 - Printed by direction of Senate Chief Clerk.

AB387-engrossed,2,2 An Act to repeal 13.62 (11t); to renumber 13.75 (intro.); to renumber and amend 13.625 (1) (c) (intro.), 13.625 (1) (c) 1., 13.625 (1) (c) 2. and 946.11 (2) (b); to amend 5.02 (13), 5.05 (2), 5.05 (2m) (d) 2., 5.05 (2m) (e), 5.05 (5e), 6.87 (3) (b), 7.23 (1) (d), 7.40, 7.50 (2) (em), 8.05 (1) (j) 2., 8.10 (5), 8.15 (4) (b), 8.16 (2) (c), 8.20 (6), 8.30 (2), 8.35 (2) (a), 8.35 (2) (c), 8.35 (4) (c), 8.35 (4) (d), 8.35 (4) (e), 8.50 (3) (a), 9.01 (5) (bm), 9.10 (2) (d), 12.07 (4), 12.08, 12.13 (3) (h), 12.60 (4), 13.62 (5g), 13.62 (5r), 13.625 (1) (b) (intro.), 13.625 (1) (b) 3., 13.625 (2), 13.625 (3), 13.625 (6r), 13.69 (6), 13.695 (4), 15.60 (5), 15.60 (6), 15.60 (7), 15.79 (2) (b), 19.42 (3m), 19.45 (13), 19.579 (1), 19.59 (1) (br), 19.59 (7) (b), 20.511 (1) (a), 20.511 (1) (i), 20.511 (1) (j), 20.855 (6) (h), 36.11 (1) (cm), 111.365 (3) (a), 120.06 (6) (b) 5., 185.03 (10) (e), 202.12 (5) (a) 2., 341.14 (6r) (fm) 1. b., 346.94 (16) (b) 2., 349.135 (2) (b), 563.907 (3) (b), 630.05 (intro.), 755.01 (4), 758.13 (3) (g) 1. a. and 758.13 (3) (g) 1. b.; to repeal and recreate chapter 11; and to create 13.62 (5j), 13.62 (5u), 13.75 (1r) and 946.11 (2) (b) 1. and 2. of the statutes; relating to: campaign finance.

Analysis by the Legislative Reference Bureau

Engrossment information:

The text of Engrossed 2015 Assembly Bill 387, as passed by the assembly on October 21, 2015, consists of the following documents adopted in the assembly on October 21, 2015: the bill as affected by Assembly Amendment 1 and Assembly Amendment 11. The text also includes the October 23, 2015, chief clerk's corrections to the assembly bill.

Content of Engrossed 2015 Assembly Bill 387

This bill restructures chapter 11 of the Wisconsin statutes, the campaign finance law. The bill also makes the following substantive changes:

Registration

The bill requires the following entities to register with the Government Accountability Board or a local filing officer before accepting a contribution, making a disbursement, or incurring an obligation:

1. Candidate committees.

2. Political parties.

3. Legislative campaign committees.

4. Political action committees.

5. Independent expenditure committees.

6. Conduits.

7. Referendum committees.

8. Recall committees.

Each entity required to register must appoint a treasurer or, in the case of a conduit, an administrator to comply with the registration and reporting requirements under the bill. A candidate may serve as the treasurer of his or her candidate committee, but the candidate may only accept contributions and make disbursements through his or her committee.

The bill defines a "political action committee" as an entity that has express advocacy as its major purpose or that uses more than 50 percent of its total spending in a 12-month period on expenditures for express advocacy, expenditures made to support or defeat a referendum, and contributions made to a candidate committee, legislative campaign committee, or political party.

Under the bill "express advocacy" means communication that contains terms such as the following with reference to a clearly identified candidate and that unambiguously relates to the campaign of that candidate:

1. "Vote for".

2. "Elect".

3. "Support".

4. "Cast your ballot for".

5. "Smith for ... (an elective office)".

6. "Vote against".

7. "Defeat".

8. "Reject".

9. "Cast your ballot against".

The bill defines "independent expenditure committee" as any person, other than an individual, or any permanent or temporary combination of persons unrelated by marriage, that has as its major purpose the making of independent expenditures or that uses more than 50 percent of its total spending in a 12-month period on independent expenditures and expenditures made to support or defeat a referendum. The bill defines "independent expenditure" as an expenditure for express advocacy that is not made in coordination with a candidate, candidate committee, candidate's agent, legislative campaign committee, or political party.

Reporting

All committees required to register under the bill must file periodic reports with the board. Each committee reports all contributions made and received, disbursements made, and obligations incurred by the committee. Each conduit reports all contributions released to support or oppose a candidate or committee. Committees and conduits, generally, submit the following reports:

1. A preprimary report. Conduits are not required to submit these reports.

2. A preelection report. Conduits are not required to submit these reports.

3. With regard to a spring primary or spring election, a report filed on the 15th day of January, April, July, and October.

4. With regard to other primaries and elections, or for those holding office not up for election, in an odd-numbered year, a report on filed on the 15th day of January, April, July, and October and, in the even numbered year, a report filed on the 15th day of January, April, and July and on the fourth Tuesday in September.

Under the bill, if a political action committee, an independent expenditure committee, or a person who is not otherwise subject to reporting spends $2,500 or more in the aggregate on express advocacy during the period beginning 60 days prior to an election and ending on the day of the election, the committee or person must submit a report to the board no later than 72 hours after making the expenditures. The report must provide all of the following:

1. The dates on which the committee or person made the expenditures.

2. The names and addresses of the persons who received the expenditures.

3. The purpose for making the expenditures.

4. The amount spent for each act of express advocacy.

5. The name of the candidate affected by the expenditures.

6. An affirmation, made under oath, that the person will comply with the prohibition on coordination, as provided under the bill.

7. The name and address of the designated agent of the committee or person.

A person which is not a committee required to register under the bill does not have to register simply because that person reports expenditures for express advocacy made during the 60-day period prior to the election.

Contributions

The bill doubles the contribution limits under current law applicable to candidates for state or local office. Under the bill, every five years, beginning in 2021, the board will adjust the contribution limits to reflect the percentage change in the consumer price index during the preceding five-year period.

The bill allows the following contributions to be made in unlimited amounts:

1. Contributions to a political action committee.

2. Contributions transferred between political action committees.

3. Contributions to a legislative campaign committee, except that a political action committee may contribute no more than $12,000 in any calendar year to a legislative campaign committee.

4. Contributions to a political party, except that a political action committee may contribute no more than $12,000 in any calendar year to a political party.

5. Contributions made by a political party or legislative campaign committee to a candidate committee.

6. Contributions paid to a segregated fund established and administered by a political party or legislative campaign committee for purposes other than making contributions to a candidate committee.

7. Contributions that a candidate makes to his or her candidate committee from the candidate's personal funds.

8. Contributions transferred between the candidates for governor and lieutenant governor of the same political party.

9. Contributions used to pay legal fees and other expenses incurred as a result of a recount.

10. Contributions used to pay legal fees and other expenses incurred in connection with a recall.

11. Contributions to a recall committee.

12. Contributions to a referendum committee.

13. Contributions to an independent expenditure committee.

The bill prohibits corporations, cooperatives, labor organizations, and tribes from contributing to committees, other than independent expenditure committees and referendum committees. The bill allows corporations, cooperatives, labor organizations, and tribes to contribute to a segregated fund established and administered by a political party or legislative campaign committee for purposes other than making contributions to a candidate committee.

Coordination

The bill prohibits a person from making an expenditure for express advocacy that is coordinated with a candidate, candidate committee, candidate's agent, legislative campaign committee, or political party and that exceeds the contribution limits or violates the source restrictions established in the bill. An expenditure for express advocacy is coordinated with such individuals or entities if the individual or entity exercises control over or engages in substantial discussions with the person making the expenditure regarding the content, timing, form, or frequency of the express advocacy. A coordinated expenditure must be reported by the candidate committee as a contribution.

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

AB387-engrossed,1 Section 1. 5.02 (13) of the statutes is amended to read:

AB387-engrossed,5,7 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 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) has the meaning given in s. 11.0101 (26).

AB387-engrossed,2 Section 2. 5.05 (2) of the statutes is amended to read:

AB387-engrossed,5,18 5.05 (2) Auditing. In addition to the facial examination of reports and statements required under s. 11.21 (13) 11.1304 (9), the board shall conduct an audit of reports and statements which are required to be filed with it to determine whether violations of ch. 11 have occurred. The board may examine records relating to matters required to be treated in such reports and statements. The board shall make official note in the file of a candidate, committee , group or individual under ch. 11, as defined in s. 11.0101 (6), of any error or other discrepancy which the board discovers and shall inform the person submitting the report or statement. The board may not audit reports, statements, or records beyond the 3-year period for which a committee must retain records under ch. 11.

AB387-engrossed,3 Section 3. 5.05 (2m) (d) 2. of the statutes is amended to read:

AB387-engrossed,6,5 5.05 (2m) (d) 2. No employee of the board, while so employed, may become a candidate, as defined in s. 11.01 (1) 11.0101 (1), for a state or partisan local office. No individual who is retained by the board to serve as a special investigator or as special counsel may, while so retained, become a candidate, as defined in s. 11.01 (1) 11.0101 (1), for any state or local office. A filing officer shall decline to accept nomination papers or a declaration of candidacy from any individual who does not qualify to become a candidate under this paragraph.

AB387-engrossed,4 Section 4. 5.05 (2m) (e) of the statutes is amended to read:

AB387-engrossed,6,15 5.05 (2m) (e) No individual who serves as an employee of the board and no individual who is retained by the board to serve as a special investigator or a special counsel may, while so employed or retained, make a contribution, as defined in s. 11.01 (6), to a candidate for state or local office. No individual who serves as an employee of the board and no individual who is retained by the board to serve as a special investigator or as special counsel, for 12 months prior to becoming so employed or retained, may have made a contribution, as defined in s. 11.01 (6), to a candidate for a partisan state or local office. In this paragraph, contribution has the meaning given in s. 11.0101 (8).

AB387-engrossed,5 Section 5. 5.05 (5e) of the statutes is amended to read:

AB387-engrossed,6,25 5.05 (5e) Biennial report. The board shall include in its biennial report under s. 15.04 (1) (d) the names and duties of all individuals employed by the board and a summary of its determinations and advisory opinions issued under sub. (6a). Except as authorized or required under sub. (5s) (f) 2., the board shall make sufficient alterations in the summaries to prevent disclosing the identities of individuals or organizations involved in the decisions or opinions. The board may also include in its biennial report any information compiled under s. 11.21 (7) 11.1304 (14). The board shall make such further reports on the matters within its jurisdiction and such recommendations for further legislation as it deems desirable.