AB605: Bill Text

LRB-2251/2

JK&TKK:kjf/jld/klm

2015 - 2016 LEGISLATURE

2015 Assembly BILL 605

December 22, 2015 - Introduced by Representatives Berceau, Sargent, Spreitzer, Genrich, Stuck, Wachs, Kolste, Brostoff, Sinicki, Goyke, C. Taylor, Ohnstad, Considine, Billings, Kessler, Jorgensen, Zamarripa, Barca and Shankland, cosponsored by Senators Ringhand, C. Larson, Lassa, Vinehout and Erpenbach. Referred to Committee on Campaigns and Elections.

AB605,2,2 An Act to repeal 11.20 (10) (c), 11.26 (4), 11.26 (9), 11.31 and 11.38 (1) (a) 3.; to renumber and amend 11.01 (16) (intro.), 11.05 (12) (b), 11.07 (1), 11.26 (2) (a) and 11.26 (13m) (b); to consolidate, renumber and amend 11.26 (13m) (intro.) and (a); to amend 11.01 (2), 11.01 (5), 11.01 (16) (a) (intro.), 11.01 (16) (a) 1., 11.055 (3), 11.06 (1) (intro.), 11.06 (2), 11.07 (2), 11.07 (3), 11.12 (6), 11.19 (1), 11.20 (4), 11.20 (8) (b), 11.20 (10) (a), 11.21 (2), 11.21 (16), 11.22 (3), 11.26 (5), 11.26 (6), 11.26 (17) (a), 11.30 (2) (b), 11.30 (2) (c), 11.30 (2) (d), 11.38 (1) (a) 1., 11.38 (1) (a) 2., 11.61 (1) (b) and 11.61 (1) (c); and to create 11.01 (7m), 11.01 (12v), 11.01 (12w), 11.01 (13), 11.01 (14), 11.01 (16) (a) 4., 11.01 (16) (a) 5., 11.05 (3) (s), 11.06 (1) (n), 11.06 (2m), 11.07 (1) (a) (intro.), 11.12 (7), 11.26 (2) (a) 1., 11.26 (2) (a) 4., 11.26 (4m), 11.30 (2) (cm), 11.385 and 11.386 of the statutes; relating to: campaign finance reporting by social welfare organizations; individual contribution limits to political parties and committees; political disbursements and obligations by corporations, cooperative associations; and labor organizations and the scope of regulated activity and reporting of certain activity under the campaign finance law.

Analysis by the Legislative Reference Bureau

This bill makes various changes to the campaign finance laws, including all of the following:

1. The bill requires a nonprofit social welfare organization that is engaged in acts for political purposes to register with the Government Accountability Board (GAB). The bill also requires the organization to report to the GAB the percentage of its total expenditures that are paid as disbursements for the purpose of influencing the election or nomination for election of any individual to state or local office or for the purpose of influencing the recall from or retention in office of an individual holding a state or local office. In addition, if the total amount of the entity's disbursements for political purposes exceeds $5,000 in a calendar year, the entity shall include in its report an itemized statement of every disbursement exceeding $300, together with the name and address of the person to whom the disbursement was made, and the date and specific purpose for which the disbursement was made.

2. This bill prohibits an individual from making contributions in excess of $10,000 in any calendar year to a committee that makes electioneering communications or expressly advocates the election or defeat of a clearly identified candidate. The bill also prohibits an individual from making contributions in excess of $10,000 in any calendar year to a political party.

3. Under current law, individuals who accept contributions, organizations that make or accept contributions, and individuals who or organizations that 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.

With certain exceptions, this bill imposes additional registration and reporting requirements on any committee who, within 60 days of an election, makes any mass communication, including an electronic communication, a mass distribution, or a mass telephoning, that includes a reference to a clearly identified candidate at that election. In addition, the bill requires a committee who becomes subject to a registration requirement by making such a communication to report, upon registration, the information that would have been required to be reported if the committee had been registered with respect to any obligation incurred or disbursement made for the purpose of making such a communication prior to registration. The bill, however, does not require registration and reporting if the communication is made by a corporation, cooperative, or nonpolitical voluntary association and is limited to the corporation's, cooperative's, or association's members, shareholders, or subscribers.

The change in the scope of reportable activity under the bill also applies to contribution and disbursement (spending) limitations and restrictions by causing reportable "contributions," "obligations," and "disbursements" to include the cost of all reportable communications.

4. The bill also requires a special report by any campaign finance registrant who makes or incurs an obligation to make a mass communication that becomes reportable under the bill within 60 days of a primary or other election in an amount greater than $300 cumulatively since the date of the registrant's last report. The special report must be made within 24 hours after the date that disbursements or obligations that exceed $300 cumulatively are made or incurred and must include the information that would otherwise be reported on the registrant's next regular report in the form prescribed by the GAB.

5. Under the bill, no entity or individual may make a disbursement for express advocacy or for an electioneering communication that is coordinated with a candidate, personal campaign committee, candidate's agent, legislative campaign committee, or political party committee. Such activity is coordinated with a candidate or committee if the candidate or committee exercises control over, or engages in substantial discussions or negotiations with the person making the disbursement regarding, the content, timing, location, form, intended audience, or frequency of the activity.

6. Under the bill, an electioneering communication is a communication that refers to a clearly identified candidate who will appear on the ballot for election or nomination for election, is made within 60 days from the day on which the primary or election involving the candidate is held, and is targeted to the relevant electorate. Any committee making a disbursement of $300 or more on an electioneering communication must, within 48 hours of making the disbursement, submit statements to GAB disclosing, among other things, the name of any candidate affected by the disbursement, the office that the candidate seeks, and whether the electioneering communication supports or opposes that candidate. The statements must also provide the name of every person who donated $300 or more to the committee and whether the committee coordinated or consulted with, or received the consent of the candidate or candidate's agent, regarding the disbursement.

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

AB605,1 Section 1. 11.01 (2) of the statutes is amended to read:

AB605,4,2 11.01 (2) "Charitable organization" means any organization described in section 170 (c) (2) of the internal revenue code, and also includes the United States, any state, territory or possession, the District of Columbia and any political subdivision thereof, when a gift is made exclusively for public purposes ; but and not for the purpose of influencing public opinion or an election outcome. "Charitable organization" does not include any private organization conducting activities for political purposes.

AB605,2 Section 2. 11.01 (5) of the statutes is amended to read:

AB605,4,7 11.01 (5) "Communications media" means newspapers, periodicals, commercial billboards, and radio and television stations, including community antenna television stations, and Internet sites maintained by the newspapers, periodicals, commercial billboards, and radio and television stations.

AB605,3 Section 3. 11.01 (7m) of the statutes is created to read:

AB605,4,10 11.01 (7m) (a) "Electioneering communication" means any communication, except as provided in par. (b), for which all of the following apply:

AB605,4,12 1. It refers to a clearly identified candidate who will appear on the ballot for election or nomination for election.

AB605,4,15 2. It is made within the 60 days preceding the day on which the primary or election involving the candidate under subd. 1. is held, including the day of the primary or election.

AB605,4,16 3. It is targeted to the relevant electorate.

AB605,4,17 (b) "Electioneering communication" does not include any of the following:

AB605,4,21 1. A communication, other than an advertisement, appearing in a news story, commentary, or editorial distributed through the facilities of any legitimate news organization, unless the facilities are controlled by any political party, political committee, or candidate.

AB605,4,23 2. A communication made solely to promote a candidate debate or forum that is made by or on behalf of a person sponsoring the debate or forum.

AB605,4,25 3. A communication made exclusively between an organization and its members.

AB605,4 Section 4. 11.01 (12v) of the statutes is created to read:

AB605,5,6 11.01 (12v) "Mass communication" means a message that is disseminated by means of one or more communications media, a mass electronic communication, a mass distribution, or a mass telephoning, but not including a bona fide poll conducted for the purpose of objectively identifying or collecting data concerning the attitudes or preferences of electors.

AB605,5 Section 5. 11.01 (12w) of the statutes is created to read:

AB605,5,9 11.01 (12w) "Mass distribution" means the distribution of 500 or more pieces of substantially identical material.

AB605,6 Section 6. 11.01 (13) of the statutes is created to read:

AB605,5,13 11.01 (13) "Mass electronic communication" means the transmission of 500 or more pieces of substantially identical material by means of electronic mail, facsimile transmission, or social media.

AB605,7 Section 7. 11.01 (14) of the statutes is created to read:

AB605,5,16 11.01 (14) "Mass telephoning" means the making of 500 or more telephone calls conveying a substantially identical message.

AB605,8 Section 8. 11.01 (16) (intro.) of the statutes is renumbered 11.01 (16) (a) 3. and amended to read:

AB605,6,9 11.01 (16) (a) 3. An In the case of a candidate, a legislative campaign committee, a personal campaign committee, a support committee, other than a support committee that files a statement under s. 11.06 (7), or a political party, an act is made for a "political purposes" purpose" when it is done for the purpose of influencing the election or nomination for election of any individual to state or local office, for the purpose of influencing the recall from or retention in office of an individual holding a state or local office, for the purpose of payment of expenses incurred as a result of a recount at an election, or for the purpose of influencing a particular vote at a referendum. In the case of a candidate, or a committee or group which is organized primarily for the purpose of influencing the election or nomination for election of any individual to state or local office, for the purpose of influencing the recall from or retention in office of an individual holding a state or local office, or for the purpose of influencing a particular vote at a referendum, all All administrative and overhead expenses for the maintenance of an office or staff which are used principally for any such purpose under this subdivision are deemed to be for a political purpose.

AB605,9 Section 9. 11.01 (16) (a) (intro.) of the statutes is amended to read:

AB605,6,12 11.01 (16) (a) (intro.) Acts which are An act made for a "political purposes" include but are not limited to purpose" includes any of the following:

AB605,10 Section 10. 11.01 (16) (a) 1. of the statutes is amended to read:

AB605,6,17 11.01 (16) (a) 1. The making of a communication which in reference to a clearly identified candidate that expressly advocates the election, defeat, recall, or retention of a clearly identified that candidate or a particular vote at a referendum and that clearly relates to that candidate's campaign.

AB605,11 Section 11. 11.01 (16) (a) 4. of the statutes is created to read:

AB605,6,23 11.01 (16) (a) 4. A mass communication, other than a communication that is exempt from reporting under s. 11.29, that is made during the period beginning on the 60th day preceding an election and ending on the date of that election, and that includes a reference to a clearly identified candidate whose name is certified under s. 7.08 (2) (a) or 8.50 (1) (d) to appear on the ballot at that election.

AB605,12 Section 12. 11.01 (16) (a) 5. of the statutes is created to read:

AB605,7,3 11.01 (16) (a) 5. Any mass communication, other than a communication that is exempt from reporting under s. 11.29, that a reasonable person would consider as advocating for or against a particular candidate, nominee, or referendum.

AB605,13 Section 13. 11.05 (3) (s) of the statutes is created to read: