SB26: Bill Text

LRB-0195/1

JTK:skg:jlb

1995 - 1996 LEGISLATURE

1995 Senate BILL 26

January 24, 1995 - Introduced by Senator Helbach, cosponsored by Representative Bock. Referred to Committee on State Government Operations and Corrections.

SB26,1,14 An Act to repeal 11.06 (1) (j), 11.06 (7) and (7m), 11.21 (9), 11.22 (10), 11.30 (2) (d), 11.31 (2) and (2m), 11.31 (3m) and (4), 11.50 (2) (g) and 11.50 (2) (i); to renumber and amend 11.001 (2); to amend 5.02 (13), 11.001 (1), 11.01 (12s), 11.05 (2r) and (3) (p), 11.10 (3), 11.12 (1) (a), (2) and (3), 11.16 (1) (a) and (b), 11.18 (6), 11.21 (15), 11.26 (1) (intro.), 11.26 (2) (intro.), 11.26 (2) (a), 11.26 (9) (a) and (b), 11.26 (10), 11.31 (title), 11.31 (1) (a) to (d), (e) and (f), 11.31 (3), 11.40 (2) and (3), 11.50 (2) (a), 11.50 (2) (b) 5., 11.50 (2) (h), 11.50 (9), 11.50 (11) (e) and 11.60 (3); to repeal and recreate 11.31 (1) (intro.); and to create 11.001 (2) (d) to (g), 11.25 (1m), 11.31 (1m) and 11.31 (9) of the statutes; relating to: limitation of campaign disbursements by candidates for state and local offices, prohibition of independent disbursements by committees or individuals in support of or opposition to candidates for state and local offices, providing an exemption from emergency rule procedures, granting rule-making authority and providing a penalty.

Analysis by the Legislative Reference Bureau

Under current law, 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. Additionally, the expenditure levels specified for candidates for the offices of state senator and representative to the assembly are subdivided between the primary and election campaign periods in such a way that only about 60% of the total applicable expenditure level for either office may be allocated by a candidate to either the primary or the election campaign period. A candidate for state office who accepts a grant from the Wisconsin election campaign fund and who agrees to be bound by the expenditure limit applicable to the office which the candidate seeks may receive a grant equal to 45% of that expenditure limit, less certain committee contributions accepted by the candidate, if there are sufficient moneys in the fund to finance the full amounts of grants for which candidates qualify.

This bill changes the current expenditure levels to limits and prohibits any candidate for state or local office from exceeding the limit applicable to the office which the candidate seeks regardless of whether the candidate accepts a grant from the Wisconsin election campaign fund. The bill also revises current prescribed expenditure levels, as follows: - See PDF for table

The dollar amounts of the expenditure levels for local offices (which are limits under the bill) are not affected by the bill.

Under the bill, the subdivided expenditure levels which limit the portion of the total level that a candidate for the office of state senator or representative to the assembly may allocate to either the primary or election campaign period are eliminated.

The bill also permits a candidate who is challenging an incumbent officeholder to spend up to 125% of the statutory expenditure limit. This additional authorization does not increase the maximum grant which a candidate may receive from the Wisconsin election campaign fund.

Under the bill, the statutory expenditure limits are adjusted biennially, beginning in 1997, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

Current law also imposes registration and financial reporting requirements on committees and individuals making expenditures independently of a candidate in support of or opposition to a candidate for a state or local office (independent expenditures).

The bill prohibits such independent expenditures. Under the bill, a committee which or individual who desires to make any expenditure in support of or in opposition to a candidate for state or local office must first obtain the permission of the candidate who is supported and that candidate must report the expenditure as a contribution and expenditure. The contribution and expenditure is subject to applicable limitations.

Under current law, any person who makes an expenditure in violation of the campaign finance law is subject to a forfeiture (civil penalty) of not more than $500 for each violation. The bill makes such offenders liable for a forfeiture of treble the amount of the unlawful expenditure.

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

SB26, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

SB26,3,7 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).

SB26, s. 2 Section 2. 11.001 (1) of the statutes is amended to read:

SB26,4,18 11.001 (1) The legislature finds and declares that our democratic system of government can be maintained only if the electorate is citizens of the state are informed and encouraged to participate in the election process as contributors, candidates and electors. It further finds that excessive spending on campaigns for public office jeopardizes, large contributions and independent campaign expenditures by special interests jeopardize the integrity of elections and discourage the participation of citizens in election campaigns. It is desirable to encourage the broadest possible participation in financing campaigns by all citizens of the state, to reduce the influence of special interests, to encourage the election of candidates who have a broad and diverse base of support and to enable candidates to have an equal opportunity to present their programs to the voters. One of the most important sources of information to the voters is available through the campaign finance reporting system. Campaign reports provide information which aids the public in fully understanding the public positions taken by a candidate or political organization. When the true source of support or extent of support for a candidate is not fully disclosed, or when a candidate becomes overly dependent upon large private contributors, or when special interests unduly influence a campaign either through contributions or independent expenditures in support of or opposition to a candidate, the democratic process is subjected to a potential corrupting influence influences. The legislature therefore finds that the state has a compelling interest in designing a system for fully disclosing contributions and expenditures made on behalf of every candidate for public office, and in placing reasonable limitations on such activities. Such a system must make readily available to the voters complete information as to who is supporting or opposing which candidate or cause and to what extent, whether directly or indirectly.

SB26,4,20 (2) This chapter is intended to serve the public purpose of stimulating the following purposes:

SB26,4,21 (a) To stimulate vigorous campaigns on a fair and equal basis and to.

SB26,4,22 (b) To provide for a better informed electorate.

SB26, s. 3 Section 3. 11.001 (2) of the statutes is renumbered 11.001 (2) (c) and amended to read:

SB26,5,4 11.001 (2) (c) This chapter is also intended to To ensure fair and impartial elections by precluding officeholders from utilizing the perquisites of office at public expense in order to gain an advantage over nonincumbent candidates who have no perquisites available to them.

SB26, s. 4 Section 4. 11.001 (2) (d) to (g) of the statutes are created to read:

SB26,5,7 11.001 (2) (d) To maintain the integrity of the democratic system in this state, and public confidence in it.

SB26,5,8 (e) To promote full and free campaign discussion and debate.

SB26,5,10 (f) To relieve candidates for elective office and elective officeholders from excessive fund-raising impediments to purposive political conduct and discourse.

SB26,5,12 (g) To control corruption and undue influence, or the appearance thereof, in the financing of state election campaigns.

SB26, s. 5 Section 5. 11.01 (12s) of the statutes is amended to read:

SB26,5,16 11.01 (12s) "Legislative campaign committee" means a committee which does not file an oath under s. 11.06 (7) organized in either house of the legislature to support candidates of a political party for legislative office.

SB26, s. 6 Section 6. 11.05 (2r) and (3) (p) of the statutes are amended to read:

SB26,6,13 11.05 (2r) General reporting exemptions. Any person, committee or group, other than a committee or individual required to file an oath under s. 11.06 (7), who or which does not anticipate accepting contributions, making expenditures or incurring obligations in an aggregate amount in excess of $1,000 in a calendar year and does not anticipate accepting any contribution or contributions from a single source, other than contributions made by a candidate to his or her own campaign, exceeding $100 in that year may indicate on its registration statement that the person, committee or group will not accept contributions, incur obligations or make expenditures in the aggregate in excess of $1,000 in any calendar year and will not accept any contribution or contributions from a single source, other than contributions made by a candidate to his or her own campaign, exceeding $100 in such year. Any registrant making such an indication is not subject to any filing requirement if the statement is true. The registrant need not file a termination report. A registrant not making such an indication on a registration statement is subject to a filing requirement. The indication may be revoked and the registrant is then subject to a filing requirement as of the date of revocation, or the date that aggregate contributions, expenditures or obligations for the calendar year exceed $1,000, or the date on which the registrant accepts any contribution or contributions exceeding $100 from a single source, other than contributions made by a candidate to his or her own campaign, during that year, whichever is earlier. If the revocation is not timely, the registrant violates s. 11.27 (1).

SB26,6,17 (3) (p) In the case of a support committee, a statement signed by the individual on whose behalf the committee intends to operate affirming that the committee is the only committee authorized to operate on his or her behalf, unless the committee files a statement under s. 11.06 (7).

SB26, s. 7 Section 7. 11.06 (1) (j) of the statutes is repealed.

SB26, s. 8 Section 8. 11.06 (7) and (7m) of the statutes are repealed.

SB26, s. 9 Section 9. 11.10 (3) of the statutes is amended to read:

SB26,7,2 11.10 (3) Every committee shall appoint a treasurer. Every individual under s. 11.06 (7) shall be deemed his or her own treasurer. No expenditure may be made or obligation incurred by or on behalf of a committee without the authorization of the treasurer or designated agents. No contribution may be accepted and no expenditure may be made or obligation incurred by any committee at a time when there is a vacancy in the office of treasurer.

SB26, s. 10 Section 10. 11.12 (1) (a), (2) and (3) of the statutes are amended to read:

SB26,7,9 11.12 (1) (a) No contribution may be made or received and no expenditure may be made or obligation incurred by a person or committee, except within the amount authorized under s. 11.05 (1) and (2), in support of or in opposition to any specific candidate or candidates in an election, other than through the campaign treasurer of the candidate or the candidate's opponent, or by or through an individual or committee registered under s. 11.05 and filing a statement under s. 11.06 (7).

SB26,7,13 (2) Any anonymous contribution exceeding $10 received by a campaign or committee treasurer or by an individual under s. 11.06 (7) may not be used or expended. The contribution shall be donated to the common school fund or to any charitable organization at the option of the treasurer.

SB26,7,20 (3) All contributions, expenditures and incurred obligations exceeding $10 shall be recorded by the campaign or committee treasurer or the individual under s. 11.06 (7). He or she shall maintain such records in an organized and legible manner, for not less than 3 years after the date of an election in which the registrant participates. If a report is submitted under s. 11.19 (1), the records may be transferred to a continuing committee or to the appropriate filing officer for retention. Records shall include the information required under s. 11.06 (1).

SB26, s. 11 Section 11. 11.16 (1) (a) and (b) of the statutes are amended to read:

SB26,8,2 11.16 (1) (a) No expenditure may be made or obligation incurred by a candidate, or by any other person or committee to advocate the election or defeat of a clearly identified candidate, other than an individual who, or a committee which, has registered under s. 11.05 and filed an oath under s. 11.06 (7), except by the campaign treasurer of the candidate or other agent designated by the candidate and acting under his or her authority.

SB26,8,9 (b) The treasurer of each committee and each individual who proposes to make a expenditure to advocate the election or defeat of a clearly identified candidate shall notify the treasurer or other agent designated under par. (a) of the candidate who is supported or whose opponent is opposed and obtain the authorization of the treasurer prior to making the expenditure. This paragraph does not apply to an individual or committee filing an oath under s. 11.06 (7) with respect to the candidate who is supported or opposed.

SB26, s. 12 Section 12. 11.18 (6) of the statutes is amended to read: