AB256: Bill Text

LRB-1218/2

JTK:jlg:lp

1999 - 2000 LEGISLATURE

1999 Assembly BILL 256

March 30, 1999 - Introduced by Representatives Meyer, Carpenter, Turner, Riley, Ryba, Travis, J. Lehman, Boyle, Berceau, Schooff and Hasenohrl, cosponsored by Senators Robson, Moen and Rude. Referred to Committee on Campaigns and Elections.

AB256,2,10 An Act to repeal 11.01 (12s), 11.05 (3) (o), 11.06 (3m), 11.06 (3r), 11.06 (3w), 11.265, 11.31 (2m), 11.31 (3m) and 11.31 (4); to renumber 11.50 (3) (a) 3.; to renumber and amend 11.50 (9); to amend 5.02 (13), 7.08 (2) (c), 7.08 (2) (cm), 8.35 (4) (b) and (c), 10.02 (3) (b) 2m., 11.05 (2r), 11.05 (3) (c), 11.05 (9) (b), 11.06 (1) (intro.), 11.06 (1) (a), 11.06 (2), 11.06 (4) (b), 11.06 (7m) (a), 11.06 (7m) (c), 11.06 (11) (a), 11.09 (3), 11.12 (3), 11.12 (4), 11.14 (1), 11.16 (5), 11.19 (2), 11.20 (1), 11.20 (7), 11.21 (15), 11.23 (4), 11.25 (2) (b), 11.26 (1) (intro.), 11.26 (2) (intro.), 11.26 (2) (a), 11.26 (2) (b) and (c), 11.26 (4), 11.26 (8), 11.26 (9) (a) and (b), 11.26 (9) (c), 11.26 (10), 11.31 (1) (intro.), 11.31 (1) (a), (b), (c) and (d), 11.31 (1) (e) and (f), 11.31 (2), 11.31 (3), 11.31 (7) (a), 11.31 (7) (c) and (d), 11.38 (1) (a) 2., 11.50 (title), 11.50 (1) (b), 11.50 (2) (a), 11.50 (2) (b) 5., 11.50 (2) (g), 11.50 (2) (i), 11.50 (3) (a) 1., 11.50 (3) (a) 2., 11.50 (4) (b) (intro.), 11.50 (8), 11.50 (10m) (title), 11.50 (11) (d), 11.50 (11) (e), 11.60 (1) to (3), 11.61 (1), 14.58 (20), 15.61, 19.42 (10) (a), 20.510 (1) (q), 20.855 (4) (b), 25.17 (1) (ys), 25.42 and 71.10 (3) (a); and to create 5.05 (10), 5.065, 11.065, 11.16 (2e), (2m) and (2s), 11.21 (17), 11.21 (18), 11.21 (19), 11.24 (1s), 11.24 (1t), 11.25 (2) (am), 11.25 (4), 11.26 (2) (ae), (am) and (as), 11.26 (7), 11.26 (8e), 11.26 (8m), 11.26 (9m), 11.26 (10m), 11.26 (17) (g), 11.31 (1) (de), 11.31 (2e), 11.31 (3n), 11.31 (9), 11.50 (3) (a) 3m., 11.50 (4) (bm), 11.50 (9) (a) 1. to 7., 11.50 (9a), 11.51, 13.90 (1) (m), 14.019 (6), 227.03 (6m) and 227.52 (8) of the statutes; relating to: various changes in the campaign finance law, the composition of the elections board, issuance of certain rulings by the division of hearings and appeals of the department of administration, providing an exemption from emergency rule procedures, granting rule-making authority and providing penalties.

Analysis by the Legislative Reference Bureau

This bill makes various changes in the campaign finance law, alters the composition of the state elections board and provides for the issuance of rulings by the division of hearings and appeals of the department of administration concerning application of the election laws. The provisions include:

Reporting by certain federal and nonresident registrants

Currently, with certain exceptions, a registrant who or which is required to register with a filing officer in this state must file regular reports identifying contributions received and disbursements made and providing certain other information. However, a committee of a candidate for the U.S. senate or house of representatives or a national political party committee need not file reports for any period covered in a report filed by the committee with the federal elections commission. In addition, a state political party committee which is registered with the federal elections commission and which makes contributions to candidates for national office, as well as contributions to other state political party committees, need not file reports for any period covered by a report filed by the committee with the federal elections commission if the elections board receives a copy of that report and the committee makes no contributions to any individual who or organization which is required to register with a filing officer under Wisconsin law. This bill deletes these exceptions to state reporting requirements.

Reporting by candidates for certain state offices

Currently, the candidate or personal campaign committee of a candidate for any office who or which does not anticipate accepting contributions, making disbursements or incurring obligations exceeding $1,000 within a calendar year and who or which does not accept any contribution or contributions from a single contributor, other than personal contributions of the candidate, exceeding $100 may be granted an exemption from reporting requirements upon request. This bill deletes this exemption as applied to candidates for statewide and legislative offices.

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 two-year period, they must be reported electronically.

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 2001, in accordance with the rate of increase or decrease in the "consumer price index" 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, 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 to any other special interest committee exceeding $100 during a biennial period beginning on January 1 of any odd-numbered year, and similarly prohibits any conduit (intermediary) from transferring a contribution to any special interest committee exceeding $100 during a biennial period beginning on January 1 of any odd-numbered year. In addition, 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 three 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 five 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 five 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