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:

AB605,7,9 11.05 (3) (s) In the case of a registrant that has made a mass communication identified in s. 11.01 (16) (a) 4., a report containing the information specified in s. 11.06 (1) with respect to any obligation to make a disbursement incurred or any disbursement made for the purpose of making such a communication prior to registration.

AB605,14 Section 14. 11.05 (12) (b) of the statutes is renumbered 11.05 (12) (b) (intro.) and amended to read:

AB605,7,22 11.05 (12) (b) (intro.) Except as authorized under sub. (13), a committee, group, or individual that becomes subject to a registration requirement under sub. (1) or (2), other than a candidate or agent of a candidate, shall comply with sub. (1) or (2) no later than the 5th business day commencing 48 hours after receipt of receiving the first contribution by the committee, group, or individual exceeding the amount specified under sub. (1) or (2) or s. 11.23 (1), and before making any disbursement exceeding that amount. No committee, group, or individual may receive a contribution during a calendar year at any time when the committee, group, or individual is not registered under this section except within the initial 48-hour period authorized by this paragraph. During that 48-hour period a committee, group, or individual may receive contributions as follows:

AB605,7,25 1. A committee supporting or opposing the election or nomination of a candidate at an election, other than an agent of a candidate, may accept any contribution or contributions not exceeding $300, no in the aggregate.

AB605,8,3 2. An individual supporting or opposing the election or nomination of a candidate at an election, other than a candidate or agent of a candidate, may accept any contribution or contributions not exceeding $300 , and no in the aggregate.

AB605,8,8 3. A group or an individual subject to registration under s. 11.23 may accept any contribution or contributions not exceeding $2,500 , in the aggregate during a calendar year at any time when the committee, group or individual is not registered under this section except within the initial 5-day period authorized by this paragraph.

AB605,15 Section 15. 11.055 (3) of the statutes is amended to read:

AB605,8,13 11.055 (3) Subsection (1) does not apply to a candidate or personal campaign committee. Subsection (1) does not apply to any registrant under s. 11.05 for any year during which the registrant does not make disbursements exceeding a total of $2,500.

AB605,16 Section 16. 11.06 (1) (intro.) of the statutes is amended to read:

AB605,8,21 11.06 (1) Contents of report. (intro.) Except as provided in subs. (2), (2m), (3), and (3m) and ss. 11.05 (2r) and 11.19 (2), each registrant under s. 11.05 shall make full reports, upon a form prescribed by the board and signed by the appropriate individual under sub. (5), of all contributions received, contributions or disbursements made, and obligations incurred. Each report shall contain the following information, covering the period since the last date covered on the previous report, unless otherwise provided:

AB605,17 Section 17. 11.06 (1) (n) of the statutes is created to read:

AB605,8,25 11.06 (1) (n) A copy of a financial institution statement, corresponding to the end of the reporting period, for the campaign depository account and any other account to which contributions are deposited and disbursements made.

AB605,18 Section 18. 11.06 (2) of the statutes is amended to read:

AB605,9,12 11.06 (2) Disclosure of certain indirect disbursements. Notwithstanding sub. (1), if a disbursement is made or obligation incurred by an individual other than a candidate or by a committee or group which is not primarily organized for political purposes, and the disbursement does not constitute a contribution to any candidate or other individual, committee, or group, and the disbursement is not made or the obligation is not incurred for the purpose of making a mass communication specified in s. 11.01 (16) (a) 4., the disbursement or obligation is required to be reported only if the purpose is to expressly advocate the election or defeat of a clearly identified candidate or the adoption or rejection of a referendum. The exemption provided by this subsection shall in no case be construed to apply to a political party, legislative campaign, personal campaign, or support committee.

AB605,19 Section 19. 11.06 (2m) of the statutes is created to read:

AB605,9,25 11.06 (2m) Social welfare organizations. Notwithstanding sub. (1), an entity organized under section 501 (c) (4) of the Internal Revenue Code that is engaged in acts for political purposes shall register under s. 11.05 (1) and shall report the percentage of its total expenditures during the reporting period 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. 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 in amount or value, 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. The entity shall make reports on forms prescribed by the board and signed by the appropriate individual under sub. (5).

AB605,20 Section 20. 11.07 (1) of the statutes is renumbered 11.07 (1) (a) 1. and amended to read:

AB605,10,8 11.07 (1) (a) 1. Every nonresident committee making contributions and every nonresident committee making disbursements to support or oppose the election or nomination of a candidate at an election exceeding $300 cumulatively in a calendar year within this state, every.

AB605,10,11 2. Every nonresident individual making disbursements to support or oppose the election or nomination of a candidate at an election exceeding $300 cumulatively in a calendar year within this state, and every.

AB605,10,17 3. Every nonresident group making contributions and every nonresident group or individual making disbursements to support or oppose a particular vote at a referendum exceeding $2,500 cumulatively in a calendar year within this state, shall file name, mailing and street address and the name and the mailing and street address of a designated agent within the state with the office of the secretary of state. An.

AB605,10,22 (am) A designated agent under par. (a) may be any adult individual who is a resident of this state. After any change in the name or address of such agent the new address or name of the successor agent shall be filed within 30 days. Service of process in any proceeding under this chapter or ch. 12, or service of any other notice or demand may be made upon such agent.

AB605,21 Section 21. 11.07 (1) (a) (intro.) of the statutes is created to read:

AB605,11,3 11.07 (1) (a) (intro.) The following committees, individuals, and groups shall file with the board their name, mailing address, and street address and the name, mailing address, and street address of their designated agent in this state:

AB605,22 Section 22. 11.07 (2) of the statutes is amended to read:

AB605,11,19 11.07 (2) During any period within which any individual or organization under sub. (1) fails to appoint or maintain in this state a registered agent, or whenever any such registered agent cannot with reasonable diligence be found at the street address listed on the registration, the secretary of state board shall be an agent and representative of such individual or organization upon whom any process, notice, or demand may be served. Service on the secretary of state board of any such process, notice, or demand against any such individual or organization shall be made by delivering to and leaving with the secretary of state, or with any clerk having charge of the secretary's office, board duplicate copies of such process, notice, or demand. If any process, notice, or demand is served on the secretary of state, he or she board, the board shall immediately cause one of such copies to be forwarded by registered mail, addressed to such individual, committee or group at its mailing address as the same appears in the records of the secretary of state board. The time within which the defendant may demur or answer does not start to run until 10 days after the date of such mailing.

AB605,23 Section 23. 11.07 (3) of the statutes is amended to read:

AB605,12,6 11.07 (3) The secretary of state board shall keep a record of all processes, notices, and demands served upon the secretary of state board under this section that shows the date and hour of service and the date of mailing. The certificate of the secretary of state board that a summons and complaint, notice of object of action, or any notice or demand required or permitted by law was served upon the secretary of state board and that the same was mailed by the secretary of state board as required by law, shall be evidence of service upon the secretary of state board. If the address of the individual, committee, or group is not known or readily ascertainable, mailing is dispensed with, and a copy of the process shall be published as a class 1 notice, under ch. 985, in the county in which the last-known registered agent was located or, if unknown, in Dane County.

AB605,24 Section 24. 11.12 (6) of the statutes is amended to read: