LRB-2872/5
JTK/RM/MS/MK:cs:jf
2001 - 2002 LEGISLATURE
February 20, 2002 - Introduced by Representatives Duff and Freese, cosponsored
by Senator Schultz. Referred to Committee on Campaigns and Elections.
AB843,2,19 1An Act to repeal 11.01 (12s), 11.05 (3) (o), 11.265, 11.31 (1) (dm), 11.31 (3m) and
211.31 (4); to renumber 11.50 (1) (a) 1.; to renumber and amend 11.05 (1),
311.05 (2), 11.12 (6), 11.31 (2m), 11.50 (1) (a) 2., 11.50 (3) (a) 1., 11.50 (3) (a) 2.,
411.50 (9), 11.66, 19.49 (5) and 19.59 (7); to amend 5.02 (13), 5.05 (1) (e), 7.08
5(2) (cm), 8.35 (4) (a) 1. a. and b., 11.05 (3) (c), 11.05 (7), 11.05 (9) (b), 11.05 (12)
6(b), 11.06 (1) (intro.), 11.06 (2), 11.06 (3) (b) (intro.), 11.06 (7m) (a), 11.06 (7m)
7(b), 11.06 (7m) (c), 11.07 (1), 11.07 (5), 11.09 (3), 11.12 (2), 11.12 (4), 11.16 (2),
811.16 (5), 11.19 (1), 11.20 (2), (3) (a) and (b), 11.20 (8) (intro.), 11.20 (8) (a), 11.21
9(15), 11.23 (1), 11.23 (2), 11.25 (2) (b), 11.26 (1) (intro.), 11.26 (1) (b) and (c), 11.26
10(2) (intro.), 11.26 (2) (a), 11.26 (2) (b) and (c), 11.26 (3), 11.26 (4), 11.26 (5), 11.26
11(6), 11.26 (8), 11.26 (9) (a), 11.26 (9) (b), 11.26 (10), 11.26 (15), 11.26 (17) (a), 11.27
12(1), 11.30 (4), 11.31 (1) (intro.), 11.31 (1) (a) to (c), 11.31 (1) (d), 11.31 (1) (e) and
13(f), 11.31 (2), 11.31 (2m) (title), 11.31 (3), 11.38 (6), 11.50 (2) (a), 11.50 (2) (b) 4.,
1411.50 (2) (b) 5., 11.50 (2) (f), 11.50 (2) (g), 11.50 (2) (h), 11.50 (2) (i), 11.50 (3) (b),

111.50 (5), 11.50 (6), 11.50 (10m), 11.50 (11) (e), 11.60 (1) and (2), 11.61 (1), 12.05,
219.53 (6), 19.59 (8) (c), 25.42, 71.10 (3) (a) and 71.10 (3) (b); and to create 5.066,
311.001 (2m), 11.01 (4m), (7) (b) 6. and (11m), 11.01 (13), (14), (17g) and (17r),
411.05 (1) (b), 11.05 (2) (b), 11.05 (3) (q), 11.06 (1) (cm), 11.06 (1) (dm), 11.06 (11)
5(bm), 11.065, 11.10 (6), 11.12 (6) (b), 11.20 (3) (be), 11.20 (8) (am), 11.21 (17),
611.24 (1s), 11.24 (1w), 11.25 (2) (am), 11.26 (1m), 11.26 (1t), 11.26 (2) (ae), (am),
7(as) and (av), 11.26 (9m), 11.26 (10a), 11.31 (1) (cg) and (cr), 11.31 (2m) (a), 11.31
8(3n), 11.31 (3r), 11.31 (9), 11.385, 11.50 (1) (a) 1. (intro.), 11.50 (1) (a) 2m., 11.50
9(1) (am), 11.50 (1) (bm) and (cm), 11.50 (2s), 11.50 (2w), 11.50 (3) (c), 11.50 (4m),
1011.50 (9) (b) to (d), 11.50 (14), 11.66 (2), 19.42 (3m), (4g), (4r) and (7p), 19.45 (13),
1119.49 (1m), 19.49 (5) (b), 19.535, 19.59 (1) (br), 19.59 (7) (b), 19.59 (8) (cm) and
12(cn), 71.07 (6s), 71.10 (4) (cs), 227.03 (6m) and 227.52 (8) of the statutes;
13relating to: campaign financing, the procedure for enforcement of the election
14laws, nonrefundable income tax credits for certain donations to the Wisconsin
15election campaign fund, candidate time on public broadcasting television
16stations and public access channels, official action in return for providing or
17withholding political contributions, services, or other things of value, providing
18exemptions from certain emergency rule procedures, granting rule-making
19authority, and providing penalties.
Analysis by the Legislative Reference Bureau
This bill makes numerous changes in the campaign financing law and also
makes certain changes to tax laws relating to campaign financing and provision of
free media access to candidates for state office. The bill also requires free time for
candidates for state office on public broadcasting television stations and public
access channels. In addition, the bill changes the procedure for enforcement of the
election laws. Significant provisions include:

Filing of campaign finance reports
Mass communications
Currently, individuals who accept contributions, organizations which make or
accept contributions, or individuals who or organizations which incur obligations or
make disbursements (expenditures) 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.
With certain exceptions, this bill imposes reporting requirements, in addition,
upon any individual who or organization that, during the period beginning on the
30th day before a primary election for an office to be filled at a general, special, or
spring election and the date of that general, special, or spring election or, if no
primary is held, during a similar 60-day period preceding a general, special, or
spring election and by means of a printed advertisement, commercial billboard, radio
or television advertisement, mass mailing, telephone call, or similar means, makes
any expenditure independently of a candidate for the purpose of making one or more
communications which include the name or likeness of a candidate for a state office
other than court of appeals judge, circuit judge, or district attorney to be filled at that
election. This requirement applies to expenditures to finance what is commonly
referred to as "issue advocacy." The requirement does not apply to a disbursement
that is reportable under current law, to a communication made solely for the purpose
of gathering information, or to a communication made by a corporation, cooperative,
or nonpolitical voluntary association that is limited to the organization's members,
shareholders, or subscribers. The reporting requirement does not apply unless the
individual or organization makes expenditures independently of a candidate for such
communications exceeding $2,000. The report required under the bill must include
the name of each candidate identified in each communication, a statement as to
whether the communication is intended to support or oppose that candidate (and, if
so, an identification of the candidate who is supported or opposed), the total amount
or value of the expenditure used to fund the communication, and the accumulative
aggregate expenditures made by the individual or organization with respect to that
election. The bill permits the board to obtain a copy of any reported communication,
under certain circumstances, in order to determine whether the communication was
intended to support or oppose a candidate. Any such determination applies only for
purposes of granting exemptions from certain disbursement and contribution limits
(see below).
Required frequency of certain reports
Currently, with limited exceptions, a candidate at any primary or other election
must file preprimary and preelection reports no later than eight days before each
primary or other election at which the candidate participates.
This bill provides, in addition, that if such a candidate, as of the end of any week
before a primary or other election at which the candidate seeks office, has received
contributions or other income in a total amount exceeding 20% of the disbursement
level provided for the office that the candidate seeks, the candidate or his or her
personal campaign committee must file weekly preprimary or preelection reports for

each week preceding the primary or other election at which the candidate seeks
office.
Reporting of disbursements for communications
Currently, if a person makes a payment to make a communication for the
purpose of influencing an election, the payment is potentially reportable as a
disbursement (expenditure), even if the communication is made after the time of the
disbursement. Under this bill, a payment made for such a purpose is not reportable
until the communication is made.
Reporting of late independent obligations and disbursements
Under current law, an individual or committee making disbursements
independently of a candidate in support of or in opposition to a candidate for state
or local office must inform the appropriate filing officer within 24 hours of making
such a disbursement, if the cumulative amount of such disbursements made by the
individual or committee later than 15 days before a primary or election exceeds $20.
This bill extends this 24-hour reporting requirement to cover obligations
incurred for communications made. Also, the bill requires 24-hour reporting only
if the cumulative amount of obligations incurred or disbursements made by the
individual or committee later than 15 days before a primary or election exceeds $250.
Reports relating to referenda
Currently, any individual who accepts contributions, makes disbursements, or
incurs obligations, and any group that makes or accepts contributions, makes
disbursements, or incurs obligations, in connection with one or more referenda
exceeding $25 cumulatively within a calendar year is potentially subject to
requirements to register with the appropriate filing officer and to file campaign
finance reports.
This bill provides instead that the individual or group is potentially subject to
registration and reporting requirements only if contributions, disbursements, or
obligations exceed $100 cumulatively within a calendar year.
Reporting by nonresident registrants
Currently, with certain exceptions, registrants under the campaign finance law
are required to file regular reports with the appropriate filing officer or agency. The
reports must identify contributors of more than $20 cumulatively within a calendar
year; the occupation and principal place of employment, if any, of each contributor
whose cumulative contributions within a calendar year exceed $100; the registrants
from whom or to whom funds are transferred; other income exceeding $20;
contributions donated to a charitable organization or the common school fund; loans
exceeding $20, together with the identity of the lenders and guarantors, if any;
disbursements (expenditures) and obligations exceeding $20; and certain
information from registrants making disbursements independently of candidates.
However, if a registrant does not maintain an office or street address within this
state, the registrant need only identify contributions, transfers, loans, and other
income received from sources in this state and disbursements and obligations
incurred with respect to elections for state or local office in this state.

This bill deletes the exception for registrants who or which do not maintain an
office or street address within this state, so that these registrants are required to
report the same information as other registrants. The bill does not affect reporting
by authorized committees of candidates for the office of U.S. senator or
representative in congress, national political party committees, and federally
registered committees of state political parties that make no contributions to
individuals or committees that are subject to a state registration requirement.
Reporting of contributions transferred by conduits
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 directs the elections board to provide a separate schedule that must
be filed by each registrant to which contributions are transferred by a conduit. The
schedule includes the name and address of the conduit, the date and amount of each
transfer, and the total amount transferred to the registrant by the conduit for the
calendar year.
Duplicate filing requirements
Currently, certain registrants whose filing officer is the elections board and who
or which make disbursements in connection with elections affecting only one county
or a portion thereof must file duplicate originals of their campaign finance reports
with the county clerk or board of election commissioners of every county in which
such elections are held. This bill requires, instead, that these registrants file
duplicate originals of these reports with the filing officer of each jurisdiction in which
such elections are held.
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.
This bill:
1. Revises the current disbursement levels and limitations applicable to
candidates for the offices shown below as follows: - See PDF for table PDF
2. Creates a quadrennial cost-of-living adjustment that causes the statutory
disbursement levels to be adjusted every 4 years, beginning in 2006, in accordance
with a formula tied to the "consumer price index" determined by the U.S. department
of labor.
Contribution limitations
Individual contributions
Current law limits the amount of contributions that may be given to and
accepted by a candidate for state or local office. Currently, individuals are subject
to limitations on the amount of contributions made cumulatively to a particular
candidate and on the aggregate total amount of contributions made to all candidates.
This bill:
1. Revises the current limitations on contributions that individuals may make
to candidates for certain state offices. Under the bill, with certain exceptions,
candidates who voluntarily agree to abide by the disbursement limitations and
self-contribution limitations may receive higher amounts of contributions from
individuals. The proposed limitations on these contributions are shown in the
following chart: - See PDF for table PDF
2. Creates a cost-of-living adjustment that causes the statutory limits on
individual contributions to be adjusted quadrennially, beginning in 2006, in
accordance with a formula tied to the "consumer price index" determined by the U.S.
department of labor.
Committee contributions
Under current law, committees other than political party committees and
legislative campaign committees are subject to limitations on the amount of
contributions made cumulatively to a particular candidate. In the case of
committees making contributions to candidates for statewide offices, this limitation
is 4% of the candidate's disbursement level or limitation. This bill replaces this
percentage limitation with a dollar amount which represents a change in the amount
of the limitation, and changes the current limitations upon contributions to
legislative candidates as follows: - See PDF for table PDF
Current law also limits the cumulative amount of contributions that a
committee other than a political party or legislative campaign committee may make
annually to a particular political party, limits the cumulative amount of
contributions that a political party may accept annually from a particular committee
other than a political party or legislative campaign committee, and its subunits or
affiliates, and limits the aggregate total of contributions that a political party may
accept during any biennium from all committees other than political party and
legislative campaign committees. Currently, a committee other than a political party
or legislative campaign committee may annually contribute up to $6,000 to a
particular political party, a political party or a legislative campaign committee may
annually accept up to $6,000 from a particular committee other than a political party
or legislative campaign committee, and its subunits and affiliates, and a political
party or legislative campaign committee may accept up to $150,000 in contributions
from all committees other than a political party or legislative campaign committee
during any biennium.
This bill increases these contribution limits. Under the bill, a political party
may receive up to $450,000 in contributions from all committees, other then political
party committees. In addition, a political party may annually accept up to $18,000
from any particular committee, other than a political party committee. The bill also
authorizes such a committee to make contributions up to that authorized amount.
In addition, the bill creates a cost-of-living adjustment that causes the
statutory limits on committee contributions to be adjusted quadrennially, beginning
in 2006, in accordance with a formula tied to the "consumer price index" determined
by the U.S. department of labor.
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.
This bill eliminates the special treatment of legislative campaign committees
under the statutes, thus causing them to be treated in the same manner as other
special interest committees for the purpose of contribution limitations. The bill does
not preclude a committee from utilizing any name it wishes.
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