AB936: Bill Text

Current law specifies limitations on the maximum amount of contributions which may be given to and accepted by a candidate for state or local office. Current law also limits the total contributions that a candidate for state or local office may accept from all political committees, including political party and legislative cam paign committees, and from the Wisconsin election campaign fund to 65% of the val ue of the statutory disbursement level specified for the office which the candidate seeks. The total amount that a candidate may accept from committees other than political party and legislative campaign committees and from the Wisconsin election campaign fund is limited to 45% of that disbursement level.

The bill decreases the limitation on total contributions that a candidate may accept from committees other than political party and legislative campaign commit tees from 45% of the disbursement level for the office which the candidate seeks to 33% of the disbursement level for that office. However, the bill does not change the limitation on the total grant that a candidate for state office may receive from the Wisconsin election campaign fund. Under the bill, grants from the Wisconsin elec tion campaign fund are not subject to the 33% limitation.

Contributions by Lobbyists and Lobbying Principals

Under current law, neither a lobbyist nor a principal (person who employs a lob byist) may make a contribution to a candidate for partisan state office at the general election, except during the period from June 1 in the year of the general election to the date of that election, if the legislature has concluded its final floorperiod and is not in special or extraordinary session at the time that the contribution is made.

The bill transfers jurisdiction over enforcement of this provision from the state ethics board to the state elections board and removes principals from coverage by the provision.

Other Contribution Restrictions

The bill creates the following new prohibitions on contributions:

1. It prohibits contributions by individuals under the age of 18 years to any can didate for a statewide office, state senator or representative to the assembly.

2. It prohibits contributions to incumbents who are seeking reelection to a par tisan state office from the first Monday in January of each odd-numbered year through the enactment of the biennial budget act and, thereafter, during any floor period, including any special or extraordinary session floorperiod. The prohibition does not apply to contributions made to an incumbent who is subject to a recall elec tion from the date on which the petition for a recall election is filed until the date of the recall election.

3. It prohibits contributions to legislative campaign committees from the first Monday of January of each odd-numbered year through the enactment of the bien nial budget act and, thereafter, during any floorperiod, including any special or ex traordinary session floorperiod.

Contributions through conduits

Under current law, a "conduit" is an individual or organization that receives a contribution and transfers the contribution to another individual or organization without exercising discretion as to the amount that is transferred and the individual to whom or the organization to which the transfer is made. When a conduit transfers a contribution, the conduit is required to identify itself in writing to the transferee as a conduit and to report to the transferee information about the original contribu tor. The conduit must include this information in its financial reports for the date on which the contribution was received and transferred. The campaign financing re ports filed by the candidate identify only the original contributor, not the conduit. A contribution from a conduit is considered to be a contribution from the original con tributor and, for the purpose of contribution limitations, a contribution of money re ceived from a conduit which is properly identified and reported is considered to be a contribution received from the original contributor. Contributions received by a candidate for state office from an individual through a conduit may be used to qualify for a grant from the Wisconsin election campaign fund.

The bill requires the campaign financing reports filed by candidates to identify any conduit from whom a contribution is received, as well as the original contributor.

The bill also treats conduits in the same manner as "political action commit tees" by:

1. Not allowing contributions made by an individual through a conduit to be used to qualify for a grant from the Wisconsin election campaign fund.

2. Applying to contributions transferred by conduits the 45% limit (33% under this bill) that applies to cumulative contributions that a candidate may accept from all committees other than political party and legislative campaign committees.

3. Subjecting contributions from conduits to the same limitations that apply to the amount of contributions that a candidate may accept from any committee other than a political party or legislative campaign committee.

4. Reducing the maximum grant that a candidate may receive from the Wiscon sin election campaign fund by the total amount of all contributions received by the candidate through conduits.

Disposition of residual funds

Under current law, residual funds remaining when a person who is required to register under the campaign financing law disbands or ceases incurring obligations, making disbursements or accepting contributions may be used for any lawful politi cal purpose, returned to the original contributors or donated to a charitable organiza tion or the common school fund.

The bill allows residual funds remaining when a registrant disbands or ceases incurring obligations, making disbursements or accepting contributions to be trans ferred to the Wisconsin election campaign fund. The bill also requires residual con tributions received by a personal campaign committee formed to support the cam paign of a partisan state officeholder who seeks election to another office and, subsequently, decides not to run for that other office to be either returned to the do nors or transferred to the Wisconsin election campaign fund. In addition, the bill lim its the amount of contributions which remain unencumbered after December 31 of an even-numbered year that a candidate for partisan state office or such a candi date's personal campaign committee may carry over from a general election cam paign to another campaign to not more than 50% of the candidate's disbursement level. Under the bill, contributions in excess of that amount must be transferred to the Wisconsin election campaign fund.

Persuasive telephoning

The bill requires all persons (including political committees and groups) who engage in or retain a telephone bank operator to engage in persuasive telephoning with respect to an election to disclose certain information to the appropriate filing officer or agency for campaign finance reporting purposes. The bill defines "persua sive telephoning" as "contacting, by telephone, potential voters for the purpose of pre senting them with information or viewpoints which could influence the attitudes of the voters toward candidates or referenda". Information that must be reported in cludes the name and address of the person; the name and address of any telephone bank operator who is retained; the amount paid to any such operator for the tele phoning services; the total amount expended by the person to conduct persuasive telephoning; and if the person engaged in or retained an operator to engage in per suasive telephoning in more than one legislative district, the amount expended by the person within each legislative district for persuasive telephoning on behalf of each candidate or each personal campaign committee of a candidate for legislative office in that district.

The bill requires the information to be reported at the same time as regular campaign finance reports are filed. In addition, before beginning persuasive tele phoning, any person who proposes to engage in or to retain a telephone bank operator to engage in such telephoning must file with the appropriate filing officer or agency a report that the person will be conducting persuasive telephoning. That officer is then directed to contact each candidate who is opposed by the telephoning to provide that information. The report must be filed before the telephoning is begun or, if an election is scheduled within 3 days of that time, at least 24 hours before the telephon ing is begun.

The bill requires every person who engages in or retains a telephone bank oper ator to engage in persuasive telephoning to provide to the elections board, upon re quest, a copy of any question that was asked, in substantially identical form, of more than one individual during the telephoning.

The bill requires each campaign finance registrant who or which does not en gage in or retain any other person to engage in persuasive telephoning to file a state ment to that effect with the appropriate filing officer or agency.

Under current law, the amount paid for any telephoning services done for the purpose of influencing the election or nomination of a candidate at an election is gen erally subject to disclosure by the person making payment for the services, together with the name and address of the payee. The disclosure is made to the appropriate filing officer or agency on regular campaign finance reports.

The bill also requires each candidate or personal campaign committee of a can didate to disclose to the appropriate filing officer or agency the telephone number and facsimile transmission number, if any, at which the candidate may be contacted.

In addition, the bill empowers the elections board, upon showing of probable cause to believe there is a violation of the campaign finance law, to obtain a search warrant to inspect records of a telecommunications utility. Currently, the board has no such authority.

Any person who violates these provisions in respect to a telephone communica tion in which the caller engages in persuasive telephoning is subject to a forfeiture (civil penalty) of $1,000, or $1 for each communication that is subject to disclosure which the person fails to disclose in a timely manner, whichever is greater.

Wisconsin election campaign fund: sources and uses of funds

Under current law, the Wisconsin election campaign fund is financed through an individual income tax "checkoff". Every individual filing a state income tax return who has a tax liability or is entitled to a tax refund may direct that $1 of general pur pose revenue be transferred to the fund. Individuals filing a joint return may sepa rately choose whether to direct that the $1 transfer be made. All moneys transferred to the fund are placed in accounts for specified offices and candidates for those offices may qualify for grants from the fund. No moneys in the fund may be used for any other purpose.

The bill:

1. Increases the amount of the individual income tax checkoff for the Wisconsin election campaign fund from $1 to $3. Under the bill, individuals filing a joint return may separately choose whether to make the $3 checkoff.

2. Eliminates a current state income and franchise tax deduction for certain business expenses related to lobbying. Currently, this deduction may be claimed for expenses incurred in direct connection with: a) appearances before, submission of statements to, or sending communications to a federal, state or local legislative body, a legislative committee or an individual legislator with respect to legislation or pro posed legislation of direct interest to a taxpayer; or b) communications between a taxpayer and an organization of which the taxpayer is a member with respect to leg islation or proposed legislation of direct interest to the taxpayer and the organiza tion. Under the bill, dues paid to any organization remain deductible to the extent that they are attributable to expenses of these activities.

3. Authorizes the state elections board to set aside an amount not exceeding 5% of the moneys transferred to the Wisconsin election campaign fund in each year, be fore distributions are made to candidate office accounts, to provide public informa tion concerning the purpose and effect of the fund and the income tax checkoff for the fund. As part of the public information program, the board must prepare an easily understood description of the purpose and effect of the fund and the tax checkoff. The department of revenue is required to include and highlight the description in its in come tax preparation instructions related to the tax checkoff.

4. Creates 2 general purpose revenue appropriations to supplement amounts available for campaign financing through the Wisconsin election campaign fund. Under one appropriation, $900,000 is appropriated annually. No funds are appro priated under the other appropriation.

The tax changes made by the bill first apply to tax returns for taxable years com mencing on or after January 1, 1996.

Grant Eligibility Requirements and Amounts

Under current law, public financing from the Wisconsin election campaign fund is available to 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. To receive a grant, a candidate must file an application with the state elections board no later than the deadline for filing nomination papers. Following the primary elec tion or the date on which a primary would be held, if required, the board determines which applicants meet the following eligibility requirements:

1. A candidate for a partisan state office at a general election must have re ceived at least 6% of the total votes cast in the primary and won the primary. A candi date for a partisan state office at a special election must either: a) appear on the bal lot or in the column of a political party whose candidate for the same office at the preceding general election received at least 6% of the vote; or b) receive at least 6% of the votes cast at the special election.

2. The candidate must have an opponent in the election.

3. The candidate must receive, during a specified time period, a specified amount through contributions from individuals of $100 or less. For a candidate for the office of governor, lieutenant governor, secretary of state, state treasurer, attor ney general, justice of the supreme court or superintendent of public instruction, the amount is 5% of the authorized disbursement level for the office which the candidate seeks. For a candidate for the office of state senator or representative to the assem bly, the amount is 10% of the authorized disbursement level for the office which the candidate seeks.

Under current law, a candidate for any office who accepts a grant must comply with statutorily prescribed contribution and disbursement limitations, unless one or more of the candidate's opponents who receive at least 6% of the votes cast for all can didates for that office at the primary, if a primary was held, do not accept a grant and do not voluntarily comply with the contribution and disbursement limitations for that office.

The maximum grant that a candidate may receive is that amount which, when added to all other contributions accepted from sources other than individuals, politi cal party committees and legislative campaign committees, is equal to 45% of the au thorized disbursement level for the office which the candidate seeks.

The bill:

1. Eliminates the requirement that, to be eligible to receive a grant from the Wisconsin election campaign fund, a candidate for a partisan state office must re ceive at least 6% of the total votes cast in the primary election. Also, it eliminates the 6% vote requirement for such a candidate at a special election.

2. Provides that the contributions of $100 or less from individuals used to deter mine eligibility for a grant from the Wisconsin election campaign fund must be made by individuals who reside in the state.

3. Allows a candidate for state senator or representative to the assembly to re ceive 50% of the grant to which he or she would otherwise be entitled if the candidate raises an amount equal to at least 5% but less than 10% of the disbursement level for the office which the candidate seeks through contributions from individuals of $100 or less, within the time period specified in current law. The bill also provides that, if within the next 14 days the candidate raises additional individual contribu tions of $100 or less so that the total amount raised through such contributions is 10% or more of the disbursement level for the office, the candidate is eligible for the remainder of the grant.

4. Allows a candidate for a partisan state office who accepts a grant from the Wisconsin election campaign fund to exceed statutory contribution and disburse ment limitations if the candidate has an opponent who does not accept a grant and does not voluntarily adhere to disbursement limitations, without regard to the per centage of votes that the opponent received in the primary. Also, it provides that the only contribution limitation that may be exceeded by a candidate whose opponent does not adhere to contribution and disbursement limitations is the limitation on a candidate's contributions to his or her own campaign.

5. Provides that, if a candidate for state office who accepts a grant from the Wis consin election campaign fund is opposed by one or more candidates who do not agree to abide by the contribution and disbursement limitations for the office, the total grant available to the candidate who accepts a grant is increased by the amount of the maximum grant for the office (45% of the statutorily specified disbursement level for the office).

The bill applies to elections held on or after January 1, 1997.

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to the bill.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

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

AB936, s. 1 Section 1. 5.05 (1) (b) of the statutes is amended to read:

AB936,9,8 5.05 (1) (b) In the discharge of its duties and upon notice to the party or parties being investigated, subpoena and bring before it any person in the state and require the production of any papers, books or other records relevant to an investigation. A circuit court may by order permit the inspection and copying of the accounts and the depositor's and loan records at any financial institution, as defined in s. 705.01 (3), doing business in the state or the records of any telecommunications utility, as de fined in s. 196.01 (10), doing business in this state, to obtain evidence of any violation of ch. 11 upon showing by the board of probable cause to believe there is a violation and that such accounts and or records may have a substantial relation to the viola tion. In the discharge of its duties, the board may cause the deposition of witnesses to be taken in the manner prescribed for taking depositions in civil actions in circuit court.

AB936, s. 2 Section 2. 7.08 (2) (c) and (cm) of the statutes are amended to read:

AB936,10,21 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 de termines 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 candi date and, the party or principle which he or she represents, if any, and, for a candi date whose application is approved under s. 11.50 (2) (bm) 1., an indication that the candidate is eligible for 50% of the amount that would have been available to the can didate if his or her application had been approved under s. 11.50 (2) (b). As soon as possible after receiving supplemental reports under s. 11.50 (2) (bm) 2., but no later than 28 days after the date specified in s. 11.50 (2) (b) 5., the board shall transmit to the state treasurer a certified list of all candidates who are eligible for supplemen tal payments under s. 11.50 (2) (bm) 2.

AB936,11,13 (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, and, for a candidate whose application is approved under s. 11.50 (2) (bm) 1., an indication that the candidate is eligible for 50% of the amount that would have been available to the candidate if his or her application had been approved under s. 11.50 (2) (b). As soon as possible after receiving supplemental reports under s. 11.50 (2) (bm) 2., but not later than 28 days after the date specified in s. 11.50 (2) (b) 5., the board shall transmit to the state treasurer a certified list of all candidates who are eligible for supplemental payments under s. 11.50 (2) (bm) 2.

AB936, s. 3 Section 3. 8.16 (5) of the statutes is repealed.

AB936, s. 4 Section 4. 10.02 (3) (b) 2m. of the statutes is amended to read:

AB936,11,24 10.02 (3) (b) 2m. At the September primary, the elector shall select the party ballot of his or her choice or the ballot containing the names of the independent candi dates for state office, and make a cross [8] in the square at the right of or depress the lever or button next to the candidate's name for each office for whom the elector intends to vote or insert or write in the name of the elector's choice for a party candi date, if any. In order to qualify for participation in the Wisconsin election campaign fund, a candidate for state office at the September primary, other than a candidate for district attorney, must receive at least 6% of all votes cast on all ballots for the office for which he or she is a candidate, in addition to other requirements.

AB936, s. 5 Section 5. 11.01 (18s) of the statutes is created to read:

AB936,12,3 11.01 (18s) "Relative" means a parent, grandparent, child, grandchild, brother, sister, parent-in-law, grandparent-in-law, brother-in-law, sister-in-law, uncle, aunt, nephew, niece, spouse, fiance or fiancee.

AB936, s. 6 Section 6. 11.05 (3) (m) of the statutes is created to read:

AB936,12,7 11.05 (3) (m) In the case of a personal campaign committee, the name of the candidate on whose behalf the committee was formed or intends to operate and the office or offices that the candidate seeks.

AB936, s. 7 Section 7. 11.05 (3) (q) and (r) of the statutes are created to read:

AB936,12,12 11.05 (3) (q) If the committee, group or individual does not engage in or retain any other person to engage in persuasive telephoning, as defined in s. 11.095 (1) (a), a separate statement, signed by the same individual who signs the registration form, to this effect.

AB936,12,15 (r) In the case of a candidate or personal campaign committee of a candidate, the telephone number or numbers and the facsimile transmission number, if any, at which the candidate may be contacted.

AB936, s. 8 Section 8. 11.06 (1) (a) of the statutes is amended to read:

AB936,12,22 11.06 (1) (a) An itemized statement giving the date, full name and street ad dress of each contributor who has made a contribution in excess of $20, or whose con tribution if $20 or less aggregates more than $20 for the calendar year, together with the amount of the contribution and the cumulative total contributions made by that contributor for the calendar year and, if the contributor made the contribution through a conduit, the identity of the conduit.

AB936, s. 9 Section 9. 11.06 (11) (c) of the statutes is amended to read:

AB936,13,3 11.06 (11) (c) A contribution of money received from a conduit, accompanied by the information required under par. (a), is considered to be a contribution from the original contributor for purposes of s. 11.26 (1) and (4).

AB936, s. 10 Section 10. 11.095 of the statutes is created to read:

AB936,13,5 11.095 Regulation of certain telephoning activities. (1) In this section:

AB936,13,16 (a) "Persuasive telephoning" means contacting, by telephone, potential voters for the purpose of presenting them with information or viewpoints which could influ ence the attitudes of the voters toward candidates or referenda. "Persuasive tele phoning" does not include any contacts that are limited solely to an attempt to identi fy potential voters, to urge potential voters to participate in an election or to offer assistance to potential voters to enable them to participate in an election, or ques tioning a random or representative sample of a universe of potential voters in a vot ing jurisdiction or voting group in an attempt to infer, using standard statistical tech niques and standard levels of statistical confidence, the attitudes or positions of the voters concerning candidates or issues or potential candidates or issues, or their knowledge of candidates or issues or potential candidates or issues.

AB936,13,19 (b) "Telephone bank operator" means any person who places or directs the placement of telephone calls to individuals and engages in or directs persuasive tele phoning.

AB936,13,24 (2) Each individual who, or committee or group which, engages in or retains a telephone bank operator to engage in persuasive telephoning with respect to any election shall provide to the board, upon request, a copy of any question that was asked by the individual, committee or group, or by the operator, in substantially iden tical form, of more than one individual during the telephoning.

AB936,14,12 (3) Each individual who, or committee or group which, engages in or retains a telephone bank operator to engage in persuasive telephoning with respect to any election shall file a written report, on a form prescribed by the board, disclosing the name and address of the individual, committee or group; the name and address of any operator who is retained; the amount paid to any such operator for the telephoning services; the total amount expended by the individual, committee or group to conduct persuasive telephoning; and, if the individual, committee or group engaged in or the telephone bank operator engaged in such telephoning on behalf of the individual, committee or group in more than one legislative district, the amount expended by the individual, committee or group within each legislative district for persuasive tele phoning performed on behalf of each candidate or each personal campaign committee of a candidate for legislative office in that district.

AB936,14,18 (4) Each individual who, or committee or group which, engages in or retains a telephone bank operator to engage in persuasive telephoning shall report the in formation specified in sub. (3) on the dates specified for filing reports under s. 11.20 (2), (2m) and (4), unless all information relating to an election has previously been reported by the individual, committee or group. Each report shall cover the period specified in s. 11.20 (8).

AB936,14,23 (5) Each individual who, or committee or group which, engages in or retains a telephone bank operator to engage in persuasive telephoning shall report the in formation specified in sub. (3) to the filing officer under s. 11.02 of each candidate whose name appears on the ballot in opposition to a candidate on behalf of whom the individual, committee or group is conducting persuasive telephoning.

AB936,15,15 (6) Any individual who, or committee or group which, engages in or retains a telephone bank operator to engage in persuasive telephoning shall, prior to the time that the telephoning is to be commenced, or, if the telephoning is to be conducted in relation to an election that is scheduled to occur on a date within 3 days of the date that the telephoning is to be commenced, no later than 24 hours prior to the time that the telephoning is to be commenced, exclusive of Saturdays, Sundays and the days specified in s. 230.35 (4) (a), deliver a written report to the filing officer under s. 11.02 of each candidate whose name appears on the ballot in opposition to a candidate on behalf of whom the individual, committee or group intends to conduct persuasive telephoning, of the intent of the individual, committee or group to conduct such tele phoning at a time specified in the report. The filing officer shall then, by expeditious means, such as by telephone or facsimile transmission, provide such notice to each candidate whose name appears on the ballot in opposition to a candidate on behalf of whom the individual, committee or group intends to conduct persuasive telephon ing. The filing officer shall also promptly mail a copy of that notice to each such candi date at the address shown on the nomination papers or declaration of candidacy of the candidate.

AB936, s. 11 Section 11. 11.12 (6) of the statutes is renumbered 11.12 (6) (a) and amended to read:

AB936,16,11 11.12 (6) (a) If any Except as provided in par. (b), if an individual or committee incurs or intends to incur an obligation or makes or intends to make a disbursement of more than $20 $250 cumulatively is made to advocate the election or defeat of a clearly identified candidate by an individual or committee later than 15 days prior to a primary or election in which the candidate's name appears on the ballot without cooperation or consultation with a candidate or agent or authorized committee of a candidate who is supported or whose opponent is opposed, and not in concert with or at the request or suggestion of such a candidate, agent or committee, the individ ual or treasurer of the committee shall, within 24 hours of making no later than 21 days prior to the activity intended to be funded by the incurred obligation or dis bursement, inform the appropriate filing officer of the information required under s. 11.06 (1) in such manner as the board may prescribe. The information shall also be included in the next regular report of the individual or committee under s. 11.20. For purposes of this subsection, obligations and disbursements cumulate beginning with the day after the last date covered on the preprimary or preelection report and ending with the day before the primary or election. Upon receipt of a report under this subsection paragraph, the filing officer shall, within 24 hours of receipt, mail a copy of the report to all candidates for any office in support of or opposition to one of whom a an incurred obligation or disbursement identified in the report is to be made.

AB936, s. 12 Section 12. 11.12 (6) (b) of the statutes is created to read:

AB936,16,19 11.12 (6) (b) If the independently incurred obligation or disbursement de scribed in par. (a) relates to a special primary or election not held concurrently with the spring or September primary or the spring or general election, the individual who or committee which incurs or intends to incur the obligation or makes or intends to make the disbursement shall inform the appropriate filing officer no later than 14 days prior to the activity intended to be funded by the incurred obligation or dis bursement.