AB428: Bill Text

LRB-1835/2

JTK:wlj:rs

2005 - 2006 LEGISLATURE

2005 Assembly BILL 428

May 17, 2005 - Introduced by Committee on Campaigns and Elections. Referred to Committee on Campaigns and Elections.

AB428,2,18 An Act to repeal 11.001 (2m), 11.01 (4m), 11.01 (12w), (13) and (14), 11.01 (16) (a) 3., 11.05 (3) (m), 11.05 (3) (r), 11.06 (1) (cm) and (dm), 11.06 (2m) (title) and (a), 11.06 (2m) (b) to (d), 11.06 (11) (bm), 11.12 (8) and (9), 11.20 (2s) and (2t), 11.20 (8) (am), 11.24 (1w), 11.24 (4), 11.26 (1m) and (1t), 11.26 (2) (ae), (am), (as) and (av), 11.26 (2m), 11.26 (2t), 11.26 (8n) and (8r), 11.26 (9) (am), 11.26 (9m), 11.26 (10a), 11.31 (1) (de), 11.31 (3p), 11.31 (9), 11.385, 11.50 (1) (a) 1. (intro.), 11.50 (1) (a) 1. b., 11.50 (1) (a) 2m., 11.50 (1) (am), 11.50 (1) (bm) and (cm), 11.50 (2) (b) 6., 11.50 (2) (j), 11.50 (2s), 11.50 (2w), 11.50 (14), 11.60 (3r), 71.07 (6s), 71.10 (4) (gw) and 806.04 (11m); to renumber 11.24 (5) and 11.50 (1) (a) 1. a.; to repeal and recreate 5.02 (13), 5.05 (2), 7.08 (2) (c) and (cm), 8.30 (2), 8.35 (4) (a) 1. a. and b., 8.35 (4) (c) and (d), 11.05 (1), 11.05 (2), 11.05 (2r), 11.05 (3) (c), 11.05 (5), 11.05 (9) (title), 11.05 (9) (b), 11.05 (12) (b), 11.05 (13), 11.06 (1) (intro.), 11.06 (1) (e), 11.06 (2), 11.06 (3) (b) (intro.), 11.06 (4) (b), 11.06 (5), 11.06 (7m) (a), 11.06 (7m) (b), 11.06 (7m) (c), 11.07 (1), 11.07 (5), 11.09 (3), 11.10 (1), 11.12 (2), 11.12 (4), 11.12 (5), 11.12 (6), 11.14 (3), 11.16 (2), 11.16 (5), 11.19 (title), 11.19 (1), 11.20 (1), 11.20 (2), 11.20 (3) (a) and (b), 11.20 (7), 11.20 (8) (intro.), 11.20 (8) (a), 11.20 (9), 11.20 (10) (a), 11.20 (12), 11.21 (2), 11.21 (15), 11.21 (16), 11.22 (3), 11.23 (1), 11.23 (2), 11.26 (1) (intro.), 11.26 (2) (intro.), 11.26 (2) (a), 11.26 (3), 11.26 (4), 11.26 (5), 11.26 (6), 11.26 (8), 11.26 (9) (a), 11.26 (9) (b), 11.26 (10), 11.26 (15), 11.26 (17) (a), 11.31 (1) (intro.), 11.31 (1) (a) to (d), 11.31 (1) (e) and (f), 11.31 (2), 11.31 (2m), 11.31 (3), 11.38 (1) (a) 2., 11.38 (6), 11.38 (8) (b), 11.50 (1) (a) 2., 11.50 (2) (a), 11.50 (2) (b) 3., 11.50 (2) (b) 4., 11.50 (2) (b) 5., 11.50 (2) (c), 11.50 (2) (f), 11.50 (2) (g), 11.50 (2) (h), 11.50 (2) (i), 11.50 (4), 11.50 (5), 11.50 (6), 11.50 (7) (intro.), 11.50 (8), 11.50 (9), 11.50 (10m), 11.50 (11) (e), 11.60 (4), 11.61 (1) (a), 25.42, 71.08 (1) (intro.) and 71.10 (3); to create 11.01 (12s), 11.05 (3) (o), 11.265, 11.50 (3) and 11.50 (10) of the statutes; and to affect 2001 Wisconsin Act 109, section 9115 (2v) and (2x), 2001 Wisconsin Act 109, section 9115 (2y), 2001 Wisconsin Act 109, section 9132 (4v), 2001 Wisconsin Act 109, section 9215 (3v), 2001 Wisconsin Act 109, section 9244 (6v), 2001 Wisconsin Act 109, section 9315 (2v) and (2w), 2001 Wisconsin Act 109, section 9344 (2v) and 2001 Wisconsin Act 109, section 9415 (1zx); relating to: deletion of changes to campaign finance and related laws made by 2001 Wisconsin Act 109.

Analysis by the Legislative Reference Bureau

2001 Wisconsin Act 109 made comprehensive changes to campaign finance law, ethics, income tax, public broadcasting, and cable television laws. Most changes made by Act 109 took effect on July 1, 2003. With the exception of provisions requiring candidate time on public broadcasting stations and public access channels at public expense, these provisions were made nonseverable so that if a court found that any of the provisions were unconstitutional all of the provisions would then be invalid. In Wisconsin Realtors Association et al. v. Ponto et al., 299 F.Supp.2d 889 (W.D. Wis., 2002), the U.S. District Court found that one provision of Act 109 relating to advance reporting of certain independent disbursements before obligations are incurred to make those disbursements violates the First and Fourteenth amendments. This decision apparently precludes enforcement and administration of the Act 109 changes as of December 11, 2002. The Act 109 changes, however, currently remain in the statutes.

This bill deletes the changes described above made by Act 109 that are affected by the nonseverability provision, except that the bill does not affect provisions of the code of ethics for state and local public officials relating to official action in return for providing or withholding things of value, which has been affected by legislation enacted after Act 109, and the bill does not affect provisions that permitted the Elections Board to allocate up to 1 percent of annual amounts designated for the Wisconsin election campaign fund (WECF) to provide public information concerning the purpose and effect of WECF. The following is a description of the changes made by Act 109 to the statutes in effect before July 1, 2003:

Act 109 imposed registration and reporting requirements on certain individuals and committees that finance certain mass communications made during the 60-day period preceding an election. The act also imposed 24-hour reporting requirements on certain special interest committees and on certain candidates for state office who decline to accept public grants from WECF to finance their campaigns. When expenditures or obligations reported by these committees or when expenditures reported by these candidates reach specified levels, the act permitted opposing candidates to receive additional campaign contributions from political parties and other committees and individuals, and to make additional expenditures to respond to the reported expenditures and obligations.

Act 109 made changes to the laws regulating campaign contributions. With certain exceptions, the act prohibited any candidate who accepts a public grant from WECF from accepting contributions from any committee other than a political party committee. The act also permitted candidates for legislative office who are bound by campaign spending and self-contribution limits as a result of accepting a public grant from WECF to accept double the amount of contributions otherwise permitted from particular individuals and, when permitted, from particular committees. The act imposed restrictions on fund raising by incumbents during a legislative session.

Act 109 increased spending limits for candidates for partisan state offices. The act decreased contribution limits for candidates for legislative office who decline to accept spending limits. The act increased the amount that a political party may receive in a biennium from all committees, other than political party committees, from $150,000 to $450,000 and increased the amount that a committee, other than a political party committee, may contribute to a political party in a calendar year from $6,000 to $18,000. The act further permitted political parties to accept an additional $450,000 from all committees in any biennium to be used in providing certain additional campaign contributions to legislative candidates. The act also imposed restrictions on the transfer of contributions between certain committees other than political party committees.

Act 109 increased the amount of campaign expenditures that candidates for state office who accept a public grant from WECF may make. The act provided that the maximum grant under WECF is an amount equal to 40 percent of the applicable spending limit or, for candidates for the office of governor, 35 percent of the applicable expenditure limit. (Prior law permitted a maximum grant of 45 percent of the applicable spending limit, less contributions accepted from special interest committees.) However, the act also provided for supplemental grants to be made to candidates who have reported mass communications or certain noncandidate expenditures made in opposition to them or in support of their opponents. The act provided candidates for the office of justice of the supreme court with a "first draw" on available grant funds. The act established political party accounts under WECF and permitted individuals who have a tax liability to designate on their state income tax returns that money be placed in a political party's account or in a general account for all qualifying candidates, as permitted previously, and increased the amount of the designation from $1 to $20. Under the act, the designation does not increase an individual's tax liability.

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

AB428, s. 1 Section 1. 5.02 (13) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,4,8 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).

AB428, s. 2 Section 2. 5.05 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,5,3 5.05 (2) Auditing. In addition to the facial examination of reports and statements required under s. 11.21 (13), 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 of any error or other discrepancy which the board discovers and shall inform the person submitting the report or statement.

AB428, s. 3 Section 3. 7.08 (2) (c) and (cm) of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB428,5,13 7.08 (2) (c) As soon as possible after the canvass of the spring and September primary votes, but no later than the first Tuesday in March and the 4th Tuesday in September, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom the board determines to be eligible to receive payments from the Wisconsin election campaign fund. The list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

AB428,5,23 (cm) As soon as possible after the canvass of a special primary, or the date that the primary would be held, if required, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom the board determines to be eligible to receive a grant from the Wisconsin election campaign fund prior to the election. The board shall also transmit a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and whom the board determines to be eligible to receive a grant under s. 11.50 (1) (a) 2. after the special election. The list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

AB428, s. 4 Section 4. 8.30 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,6,7 8.30 (2) If no registration statement has been filed by or on behalf of a candidate for state or local office in accordance with s. 11.05 (2g) or (2r) by the applicable deadline for filing nomination papers by such candidate, or the deadline for filing a declaration of candidacy for an office for which nomination papers are not filed, the name of the candidate may not appear on the ballot. This subsection may not be construed to exempt a candidate from applicable penalties if he or she files a registration statement later than the time prescribed in ss. 11.01 (1) and 11.05 (2g).

AB428, s. 5 Section 5. 8.35 (4) (a) 1. a. and b. of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB428,6,14 8.35 (4) (a) 1. a. Donated to the former candidate's local or state political party if the former candidate was a partisan candidate or donated to the charitable organization of the former candidate's choice or the charitable organization chosen by the former candidate's next of kin if the former candidate is deceased, or if no choice is made returned to the donors on a proportional basis; or

AB428,6,18 b. If the former candidate was a nonpartisan candidate, donated to the charitable organization of the former candidate's choice or the charitable organization chosen by the former candidate's next of kin if the former candidate is deceased; or

AB428, s. 6 Section 6. 8.35 (4) (c) and (d) of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB428,7,3 8.35 (4) (c) The transfer shall be reported to the appropriate filing officer in a special report submitted by the former candidate's campaign treasurer. If the former candidate is deceased and was serving as his or her own campaign treasurer, the former candidate's petitioner or personal representative shall file the report and make the transfer required by par. (b), if any. The report shall include a complete statement of all contributions, disbursements and incurred obligations pursuant to s. 11.06 (1) covering the period from the day after the last date covered on the former candidate's most recent report to the date of disposition.

AB428,7,6 (d) The newly appointed candidate shall file his or her report at the next appropriate interval under s. 11.20 (2) or (4) after his or her appointment. The appointed candidate shall include any transferred funds in his or her first report.

AB428, s. 7 Section 7. 11.001 (2m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB428, s. 8 Section 8. 11.01 (4m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB428, s. 9 Section 9. 11.01 (12s) of the statutes is created to read:

AB428,7,14 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.

AB428, s. 10 Section 10. 11.01 (12w), (13) and (14) of the statutes, as created by 2001 Wisconsin Act 109, are repealed.

AB428, s. 11 Section 11. 11.01 (16) (a) 3. of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB428, s. 12 Section 12. 11.05 (1) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,8,3 11.05 (1) Committees and groups. Except as provided in s. 9.10 (2) (d), every committee other than a personal campaign committee, and every political group subject to registration under s. 11.23 which makes or accepts contributions, incurs obligations or makes disbursements in a calendar year in an aggregate amount in excess of $25 shall file a statement with the appropriate filing officer giving the information required by sub. (3). In the case of any committee other than a personal campaign committee, the statement shall be filed by the treasurer. A personal campaign committee shall register under sub. (2g) or (2r).

AB428, s. 13 Section 13. 11.05 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,8,12 11.05 (2) Individuals. Except as provided in s. 9.10 (2) (d), every individual, other than a candidate or agent of a candidate, who accepts contributions, incurs obligations, or makes disbursements in a calendar year in an aggregate amount in excess of $25 shall file a statement with the appropriate filing officer giving the information required by sub. (3). An individual who guarantees a loan on which an individual, committee or group subject to a registration requirement defaults is not subject to registration under this subsection solely as a result of such default.

AB428, s. 14 Section 14. 11.05 (2r) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,9,10 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 disbursements 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 disbursements 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, disbursements 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).

AB428, s. 15 Section 15. 11.05 (3) (c) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,9,16 11.05 (3) (c) In the case of a committee, a statement as to whether the committee is a personal campaign committee, a political party committee, a legislative campaign committee, a support committee or a special interest committee.

AB428, s. 16 Section 16. 11.05 (3) (m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB428, s. 17 Section 17. 11.05 (3) (o) of the statutes is created to read:

AB428,9,23 11.05 (3) (o) In the case of a legislative campaign committee, a statement signed by the leader of the party in the house for which the committee is established attesting to the fact that the committee is the only authorized legislative campaign committee for that party in that house.

AB428, s. 18 Section 18. 11.05 (3) (r) of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB428, s. 19 Section 19. 11.05 (5) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB428,10,17 11.05 (5) Change of information. Any change in information previously submitted in a statement of registration shall be reported by the registrant to the appropriate filing officer within 10 days following the change. This period does not apply in case of change of an indication made under sub. (2r), which shall be reported no later than the date that a registrant is subject to a filing requirement under sub. (2r). Any such change may be reported only by the individual or by the officer who has succeeded to the position of an individual who signed the original statement; but in the case of a personal campaign committee, a candidate or campaign treasurer may report a change in the statement except as provided in s. 11.10 (2), and in the case of any other committee or group, the chief executive officer or treasurer indicated on the statement may report a change. If a preexisting support committee is adopted by a candidate as his or her personal campaign committee, the candidate shall file an amendment to the committee's statement under this subsection indicating that all information contained in the statement is true, correct and complete.