LRB-1218/2
JTK:jlg:lp
1999 - 2000 LEGISLATURE
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 1An Act to repeal 11.01 (12s), 11.05 (3) (o), 11.06 (3m), 11.06 (3r), 11.06 (3w),
211.265, 11.31 (2m), 11.31 (3m) and 11.31 (4); to renumber 11.50 (3) (a) 3.; to
3renumber and amend
11.50 (9); to amend 5.02 (13), 7.08 (2) (c), 7.08 (2) (cm),
48.35 (4) (b) and (c), 10.02 (3) (b) 2m., 11.05 (2r), 11.05 (3) (c), 11.05 (9) (b), 11.06
5(1) (intro.), 11.06 (1) (a), 11.06 (2), 11.06 (4) (b), 11.06 (7m) (a), 11.06 (7m) (c),
611.06 (11) (a), 11.09 (3), 11.12 (3), 11.12 (4), 11.14 (1), 11.16 (5), 11.19 (2), 11.20
7(1), 11.20 (7), 11.21 (15), 11.23 (4), 11.25 (2) (b), 11.26 (1) (intro.), 11.26 (2)
8(intro.), 11.26 (2) (a), 11.26 (2) (b) and (c), 11.26 (4), 11.26 (8), 11.26 (9) (a) and
9(b), 11.26 (9) (c), 11.26 (10), 11.31 (1) (intro.), 11.31 (1) (a), (b), (c) and (d), 11.31
10(1) (e) and (f), 11.31 (2), 11.31 (3), 11.31 (7) (a), 11.31 (7) (c) and (d), 11.38 (1) (a)
112., 11.50 (title), 11.50 (1) (b), 11.50 (2) (a), 11.50 (2) (b) 5., 11.50 (2) (g), 11.50 (2)
12(i), 11.50 (3) (a) 1., 11.50 (3) (a) 2., 11.50 (4) (b) (intro.), 11.50 (8), 11.50 (10m)
13(title), 11.50 (11) (d), 11.50 (11) (e), 11.60 (1) to (3), 11.61 (1), 14.58 (20), 15.61,
1419.42 (10) (a), 20.510 (1) (q), 20.855 (4) (b), 25.17 (1) (ys), 25.42 and 71.10 (3) (a);

1and to create 5.05 (10), 5.065, 11.065, 11.16 (2e), (2m) and (2s), 11.21 (17), 11.21
2(18), 11.21 (19), 11.24 (1s), 11.24 (1t), 11.25 (2) (am), 11.25 (4), 11.26 (2) (ae), (am)
3and (as), 11.26 (7), 11.26 (8e), 11.26 (8m), 11.26 (9m), 11.26 (10m), 11.26 (17) (g),
411.31 (1) (de), 11.31 (2e), 11.31 (3n), 11.31 (9), 11.50 (3) (a) 3m., 11.50 (4) (bm),
511.50 (9) (a) 1. to 7., 11.50 (9a), 11.51, 13.90 (1) (m), 14.019 (6), 227.03 (6m) and
6227.52 (8) of the statutes; relating to: various changes in the campaign finance
7law, the composition of the elections board, issuance of certain rulings by the
8division of hearings and appeals of the department of administration, providing
9an exemption from emergency rule procedures, granting rule-making
10authority 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 PDF
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 PDF
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
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 PDF
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 2002, 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 nine 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 six 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 three 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 nine 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.
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