Analysis by the Legislative Reference Bureau
This bill makes numerous changes in the campaign financing law. Significant
changes include:
Disbursement 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. Additionally, the disbursement levels for candidates for
the offices of state senator and representative to the assembly are subdivided
between the primary and election campaign periods in such a way that only about
60% of the total applicable disbursement level for either office may be allocated by
a candidate to either the primary or the election campaign period.
The bill:
1. Eliminates the disbursement limitation, applicable to candidates for the
offices of state senator and representative to the assembly, that requires the overall
limitation to be subdivided between the primary and election campaign periods in
such a way that only about 60% of the statutory disbursement level is allocated to
either the primary or election campaign period.
2. Revises the current disbursement levels applicable to candidates for the
offices shown in the following chart:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
3. Creates a biennial cost-of-living adjustment that causes the statutory
disbursement levels to be adjusted biennially, beginning in 1999, in accordance with
a formula tied to the "consumer price index" determined by the U.S. department of
labor.
Contribution limitations
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
campaign committees, and from the Wisconsin election campaign fund to 65% of the
value 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 changes the current limitation on total contributions that a candidate
may accept from committees other than political party committees from 45% of the
disbursement level for the office which the candidate seeks to 15% of the
disbursement level for the office which the candidate seeks. Under the bill, grants
from the Wisconsin election campaign fund are not subject to the 15% limitation.
The bill also changes contribution limitations applicable to individuals and
committees making contributions to candidates for the office of governor, lieutenant
governor, secretary of state, state treasurer, attorney general, state superintendent
of public instruction, justice of the supreme court, state senator or representative to
the assembly per campaign, as follows:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
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.
The bill eliminates the special status of legislative campaign committees, thus
treating them in the same manner as other special interest committees for the
purpose of contribution limitations.
Other Contribution Restrictions
The bill creates the following new prohibitions on contributions:
1. It prohibits contributions to incumbents who are seeking reelection to a
partisan 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
floorperiod, including any special or extraordinary session floorperiod. The
prohibition does not apply to contributions to an incumbent who is a candidate for
state office at a special election during the period beginning on the date that a special
election is ordered and ending on the date of the special election.
2. It prohibits any committee from making a contribution to any special interest
or political party committee.
3. It prohibits any lobbyist from making a contribution to a partisan elective
state official or candidate for a partisan elective state office or to such an official's or
candidate's personal campaign committee. Currently, a lobbyist may make such a
contribution in the year that an official or candidate seeks election between June 1
and the day of the general election.
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
contributor. The conduit must include this information in its financial reports for the
date on which the contribution was received and transferred. The campaign
financing reports 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 contributor and, for the purpose of contribution limitations, a contribution
of money received 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
committees" 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. 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 committee.
3. Reducing the maximum grant that a candidate may receive from the
Wisconsin election campaign fund by the total amount of all contributions received
by the candidate through conduits.
Mass media and telephoning activities
Currently, individuals who or organizations which make or accept
contributions, 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. This bill
requires each individual who or organization which receives donations and makes
expenditures for the purpose of publishing, broadcasting or disseminating a
communication which includes the name or likeness of a candidate for state or local
office by means of one or more communications media or through a telephone bank
operator to register and file reports with the appropriate filing officer identifying the
donations received and expenditures made to the same extent as currently required
for individuals who or organizations which attempt to influence elections. If an
expenditure made by such an individual or organization exceeds $1,000, it must be
reported within 24 hours of the time it is made.
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
"persuasive telephoning" as "contacting, by telephone, potential voters for the
purpose of presenting them with information or viewpoints which are designed to
influence the attitudes of the voters toward candidates or referenda". Information
that must be reported includes 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 telephoning 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 persuasive 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.
Any person who violates these provisions in respect to a telephone
communication in which the caller engages in persuasive telephoning is subject to
a forfeiture (civil penalty) of $1 for each communication that is subject to disclosure
which the person fails to disclose in a timely manner.
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
generally 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. Violators
of disclosure requirements are subject to a forfeiture of not more than $500 for each
violation. Intentional violators are guilty of a misdemeanor and may be fined not
more than $1,000 or imprisoned for not more than 6 months or both.
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
purpose revenue be transferred to the fund. Individuals filing a joint return may
separately choose whether to direct that the $1 transfer be made. All moneys
transferred to the fund are placed in accounts for specified state offices, and
candidates for those offices may qualify for grants from the fund to be used for
specified campaign expenses. 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 $5, effective for tax returns filed for taxable years
beginning on or after January 1, 1999. Under the bill, individuals filing a joint return
may separately choose whether to make the $5 checkoff.
2. Provides a sum sufficient appropriation from general purpose revenue to
supplement the amounts otherwise available for campaign financing through the
Wisconsin election campaign fund so as to enable all eligible candidates to receive
the maximum grants for which they qualify.
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
election or the date on which a primary would be held, if required, the board
determines whether a candidate who applies for a grant meets the following
eligibility requirements:
1. If the candidate seeks a partisan state office at a general election, the
candidate must have received at least 6% of the total votes cast in the primary and
won the primary. If the candidate seeks a partisan state office at a special election,
the candidate must either: a) appear on the ballot 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,
attorney 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 assembly, 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
candidates for that office at a partisan 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, political party committees and legislative campaign committees,
is equal to 45% of the authorized disbursement level for the office which the
candidate seeks, if there are sufficient moneys in the Wisconsin election campaign
fund to finance the full amount of grants for which candidates qualify.
The bill:
1. Provides that a candidate for the office of state senator or representative to
the assembly need receive contributions equal to only 5% of the authorized
disbursement level for the office which the candidate seeks in order to qualify for a
grant, but provides that the contributions of $100 or less from individuals used by
a candidate for any state office to determine eligibility for a grant from the Wisconsin
election campaign fund must be made by individuals who reside in the state and, in
the case of a candidate for legislative office, at least 50% of the contributions must
be made by individuals who reside in the district in which the candidate seeks office.
2. Increases the maximum grant that a candidate may receive to that amount
which, when added to all other contributions accepted from sources other than
individuals and political party committees, is equal to 50% of the authorized
disbursement level for the office which the candidate seeks.
3. Provides that, if a candidate for state office who accepts a grant from the
Wisconsin 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 (50% of the statutorily specified disbursement
level for the office). In connection with this change and the preceding change, the
bill waives the contribution limitation that applies to cumulative contributions
received by a candidate from political party committees and the Wisconsin election
campaign fund to enable a candidate to accept the full amount of his or her grants.
filing of
campaign finance reports
Currently, with certain exceptions, registrants under the campaign finance law
are required to file periodic reports with the appropriate filing officer or agency. A
candidate or a committee or individual making disbursements or incurring
obligations in support of or opposition to a candidate is generally required to file a
report no later than the 8th day before a primary or election at which the candidate
seeks nomination or election to office.
Currently, where a requirement is imposed under the campaign finance law for
filing of a report by a specified date, the requirement may be satisfied by depositing
the report with the U.S. postal service no later than the date provided by law for
receipt of the report.
This bill also requires each candidate at the general election, and each
committee or individual making disbursements or incurring obligations in support
of or in opposition to a candidate at the general election, to file an additional report
on the 14th day after the general election.
In addition, the bill permits satisfaction of the filing requirement only by actual
receipt of a report by the board on or before the date provided by law for receipt of
the report or by depositing the report with the U.S. postal service no later than the
3rd day before that date.
Initial applicability
All campaign finance changes under the bill apply to elections held on or after
the day on which the bill becomes law.
Other
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:
AB829, s. 1
1Section
1. 5.02 (13) of the statutes is amended to read:
AB829,9,32
5.02
(13) "Political party" or "party" means a state committee registered under
3s. 11.05
and organized exclusively for political purposes under whose name
4candidates appear on a ballot at any election, and all county, congressional,
1legislative, local and other affiliated committees authorized to operate under the
2same name. For purposes of ch. 11, the term does not include
a legislative campaign
3committee or a committee filing an oath under s. 11.06 (7).
AB829, s. 2
4Section
2. 7.08 (2) (c) and (cm) of the statutes are amended to read:
AB829,9,155
7.08
(2) (c) As soon as possible after the canvass of the spring and September
6primary votes, but no later than the first Tuesday in March and the 4th Tuesday in
7September, transmit to the state treasurer a certified list of all eligible candidates
8for state office who have filed applications under s. 11.50 (2) and
whom who the board
9determines to be eligible to receive payments from the Wisconsin election campaign
10fund. The
board shall also transmit a similar list of candidates who the board
11determines to be eligible to receive a supplementary grant under s. 11.50 (9) (b)
12within 5 days after the candidates qualify to receive the grants. Each list shall
13contain each candidate's name, the mailing address indicated upon the candidate's
14registration form, the office for which the individual is a candidate and the party or
15principle which he or she represents, if any.
AB829,9,2516
(cm) As soon as possible after the canvass of a special primary, or the date that
17the primary would be held, if required, transmit to the state treasurer a certified list
18of all eligible candidates for state office who have filed applications under s. 11.50 (2)
19and
whom who the board determines to be eligible to receive a grant from the
20Wisconsin election campaign fund prior to the election. The board shall also transmit
21a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and
22whom who the board determines to be eligible to receive a grant under s. 11.50 (1)
23(a) 2. after the special election
. The or a supplementary grant under s. 11.50 (9) (b)
24within 5 days after the candidates qualify to receive the grants. Each list shall
25contain each candidate's name, the mailing address indicated upon the candidate's
1registration form, the office for which the individual is a candidate and the party or
2principle which he or she represents, if any.
AB829, s. 3
3Section
3. 11.01 (5m) of the statutes is amended to read:
AB829,10,84
11.01
(5m) "Conduit" means an individual who or
an organization a committee 5which receives a contribution of money and transfers the contribution to another
6individual or organization without exercising discretion as to the amount which is
7transferred and the individual to whom or organization to which the transfer is
8made.
AB829, s. 4
9Section
4. 11.01 (12s) of the statutes is repealed.
AB829, s. 5
10Section
5. 11.05 (3) (c) of the statutes is amended to read:
AB829,10,1411
11.05
(3) (c) In the case of a committee, a statement as to whether the
12committee is a personal campaign committee, a political party committee,
a
13legislative campaign committee, a support committee or a special interest
14committee.
AB829, s. 6
15Section
6. 11.05 (3) (o) of the statutes is repealed.
AB829, s. 7
16Section
7. 11.05 (9) (b) of the statutes is amended to read:
AB829,10,2217
11.05
(9) (b) An individual who or a committee or group which receives a
18contribution of money and transfers the contribution to another individual,
19committee or group while acting as a conduit is not subject to registration under this
20section unless the individual, committee or group transfers the contribution to a
21candidate or a personal campaign,
legislative campaign, political party or support
22committee.
AB829, s. 8
23Section
8. 11.06 (1) (a) of the statutes is amended to read:
AB829,11,424
11.06
(1) (a) An itemized statement giving the date, full name and street
25address of each contributor who has made a contribution in excess of $20, or whose
1contribution if $20 or less aggregates more than $20 for the calendar year, together
2with the amount of the contribution and the cumulative total contributions made by
3that contributor for the calendar year
and, if the contributor made the contribution
4through a conduit, the identity of the conduit.
AB829, s. 9
5Section
9. 11.06 (2) of the statutes is amended to read:
AB829,11,146
11.06
(2) Disclosure of certain indirect disbursements. Notwithstanding
7sub. (1), if a disbursement is made or obligation incurred by an individual other than
8a candidate or by a committee or group which is not primarily organized for political
9purposes, and the disbursement does not constitute a contribution to any candidate
10or other individual, committee or group, the disbursement or obligation is required
11to be reported only if the purpose is to expressly advocate the election or defeat of a
12clearly identified candidate or the adoption or rejection of a referendum. The
13exemption provided by this subsection shall in no case be construed to apply to a
14political party,
legislative campaign, personal campaign or support committee.
AB829, s. 10
15Section
10. 11.06 (7m) (a) of the statutes is amended to read:
AB829,12,516
11.06
(7m) (a) If a committee which was registered under s. 11.05 as a political
17party committee
or legislative campaign committee supporting candidates of a
18political party files an oath under sub. (7) affirming that it does not act in cooperation
19or consultation with any candidate who is nominated to appear on the party ballot
20of the party at a general or special election, that the committee does not act in concert
21with, or at the request or suggestion of, such a candidate, that the committee does
22not act in cooperation or consultation with such a candidate or agent or authorized
23committee of such a candidate who benefits from a disbursement made in opposition
24to another candidate, and that the committee does not act in concert with, or at the
25request or suggestion of, such a candidate or agent or authorized committee of such
1a candidate who benefits from a disbursement made in opposition to another
2candidate, the committee filing the oath may not make any contributions in support
3of any candidate of the party at the general or special election or in opposition to any
4such candidate's opponents exceeding the amounts specified in s. 11.26 (2), except as
5authorized in par. (c).
AB829, s. 11
6Section
11. 11.06 (7m) (c) of the statutes is amended to read:
AB829,12,137
11.06
(7m) (c) A committee filing an oath under sub. (7) which desires to change
8its status to a political party committee
or legislative campaign committee may do
9so as of December 31 of any even-numbered year. Section 11.26 does not apply to
10contributions received by such a committee prior to the date of the change. Such a
11committee may change its status at other times only by filing a termination
12statement under s. 11.19 (1) and reregistering as a newly organized committee under
13s. 11.05.
AB829, s. 12
14Section
12. 11.06 (11) (c) of the statutes is amended to read:
AB829,12,1715
11.06
(11) (c) A contribution of money received from a conduit, accompanied by
16the information required under par. (a), is considered to be a contribution from the
17original contributor
for purposes of s. 11.26 (1) and (4).
AB829, s. 13
18Section
13. 11.065 of the statutes is created to read:
AB829,12,21
1911.065 Registration and reports by certain individuals and
20organizations. (1) (a) "Mass mailing" means the distribution of 50 or more pieces
21of substantially identical material.
AB829,12,2322
(b) "Organization" means any person, other than an individual, and any
23combination of 2 or more persons.
AB829,12,2424
(c) "Telephone bank operator" has the meaning given in s. 11.095 (1) (b).
AB829,13,7
1(2) Any individual who or organization which receives one or more donations
2and makes one or more expenditures from those donations or other income for the
3purpose of publishing, broadcasting or disseminating a communication which
4includes the name or likeness of a candidate for state or local office by means of one
5or more communications media or a mass mailing or through a telephone bank
6operator shall, prior to conducting any such activity, register with the filing officer
7of the candidate whose name or likeness is used.
AB829,13,9
8(3) A registrant under sub. (2) shall file reports with each filing officer with
9whom the individual or organization is registered identifying all of the following: