SB7, s. 53 13Section 53. 11.50 (2) (c) and (d) of the statutes are amended to read:
SB7,36,214 11.50 (2) (c) If a candidate has not filed financial reports as of the date of the
15spring primary, September primary, special primary, or date that the special primary
16would be held, if required, which indicate that he or she has met the qualification
17under par. (b) 5. or (bm) 1., the candidate may file a special report with the board.
18Such report shall be filed not later than the 7th day after the primary, or 7th day after
19the date the primary would be held, if required, and shall include such
20supplementary information as to sources of contributions which may be necessary
21to complete the candidate's qualification. The special report shall cover the period
22from the day after the last date covered on the candidate's most recent report, or from
23the date on which the first contribution was received or the first disbursement was
24made, whichever is earlier, if the candidate has not previously filed a report, to the

1date of such report. All information included on the special report shall also be
2included in the candidate's next report under s. 11.20.
SB7,36,63 (d) For purposes of qualification under par. (b) 4. and 5. or (bm), the financial
4reports of a former candidate are considered to be same as if filed by the candidate
5who is lawfully appointed to replace such candidate whenever a vacancy after
6nomination occurs.
SB7, s. 54 7Section 54. 11.50 (2) (f) of the statutes is amended to read:
SB7,36,148 11.50 (2) (f) The board shall inform each candidate in writing of the approval
9or disapproval of the candidate's application, as promptly as possible after the date
10of the spring primary, September primary, special primary, or date that the primary
11would be held, if required. With respect to a candidate at a special election who
12applies for a postelection grant under sub. (1) (a) 2., the board shall inform the
13candidate in writing of the conditional approval or disapproval of the candidate's
14application at the same time.
SB7, s. 55 15Section 55. 11.50 (2) (i) of the statutes is amended to read:
SB7,37,216 11.50 (2) (i) Notwithstanding par. (g), if an eligible candidate at the spring
17election or a special nonpartisan
any election who accepts a grant is opposed by one
18or more candidates in the election, or if an eligible candidate at the general election
19or a special partisan election who accepts a grant is opposed by one or more
20candidates in the election who receive at least 6% of the vote cast for all candidates
21for the same office on all ballots at the September primary or a special partisan
22primary if a primary was held, and in either case if any such opponent of the eligible
23candidate does
who do not accept a grant under this section in whole or in part, the
24eligible candidate is not bound by the pledge made in his or her application to adhere
25to the contribution limitations prescribed in s. 11.26 (10) and the disbursement

1limitation prescribed under s. 11.31, unless each such opponent files an affidavit of
2voluntary compliance under s. 11.31 (2m).
SB7, s. 56 3Section 56. 11.50 (2m) of the statutes is created to read:
SB7,37,84 11.50 (2m) Public Information. (a) Annually, no later than August 15, the
5board may notify the state treasurer that an amount not exceeding 5% of the amount
6transferred to the fund in that year shall be placed in a public information account.
7 Moneys in this account shall be expended by the board for the purpose of providing
8public information concerning the purpose and effect of s. 71.10 (3) and this section.
SB7,37,129 (b) As part of the public information program under par. (a), the board shall
10prepare an easily understood description of the purpose and effect of s. 71.10 (3) and
11this section. The department of revenue shall include and highlight the description
12in its income tax preparation instructions relating to s. 71.10 (3).
SB7,37,1413 (c) Any amount placed in the public information account that is not expended
14by the board in any year shall be retained in that account.
SB7, s. 57 15Section 57. 11.50 (3) (a) (intro.) of the statutes is amended to read:
SB7,37,1816 11.50 (3) (a) (intro.) Annually on August 15, Immediately after apportionment
17under sub. (2m), the state treasurer shall annually apportion
all moneys
18appropriated to the fund shall be apportioned as follows by the state treasurer:
SB7, s. 58 19Section 58. 11.50 (3) (a) 1. and 2. of the statutes are amended to read:
SB7,37,2420 11.50 (3) (a) 1. If an election for state superintendent is scheduled in the
21following year, 8% of the fund shall be placed in a superintendency account. From
22this account, an equal amount shall be disbursed to the campaign depository account
23of each eligible candidate by the state treasurer, except as provided in par. (c) and
24sub. (9) (b)
.
SB7,38,4
12. If an election for justice is scheduled in the following year, 8% of the fund
2shall be placed in a supreme court account. From this account, an equal amount shall
3be disbursed to the campaign depository account of each eligible candidate by the
4state treasurer, except as provided in par. (c) and sub. (9) (b).
SB7, s. 59 5Section 59. 11.50 (3) (c) of the statutes is created to read:
SB7,38,156 11.50 (3) (c) If an eligible candidate for state superintendent or justice who
7receives and accepts a grant is opposed by an opponent whose name appears on a
8spring or special election ballot, and the board notifies the eligible candidate under
9s. 11.12 (6) (a) that an individual or committee acting independently has incurred or
10intends to incur an obligation or has made or intends to make a disbursement in
11opposition to the eligible candidate or in support of his or her opponent specified in
12this paragraph, the eligible candidate shall receive a supplementary grant
13equivalent to the amount of the proposed or actual obligation or disbursement. The
14board shall direct the state treasurer to make payment of the supplementary grant
15within 5 days after receipt of a report specified in this paragraph.
SB7, s. 60 16Section 60. 11.50 (4) (c), (cm) and (d) of the statutes are amended to read:
SB7,38,2317 11.50 (4) (c) The legislative and special election campaign account shall be
18divided into a senate campaign account to receive 25% of the moneys, and an
19assembly campaign account to receive 75% of the moneys. Each account shall then
20be apportioned between all eligible candidates for the same office in the entire state,
21based on the assumption that all candidates who are eligible under sub. (2) (bm) 1.
22will also be eligible under sub. (2) (bm) 2
. No apportionment shall be made by
23legislative district, except as provided in par. (e).
SB7,39,824 (cm) Each Except as provided in par. (e) and subs. (2) (bm) and (9) (b), each
25eligible candidate for the same office at a special election shall receive an equal

1amount, which amount shall be equivalent to the maximum grant which was payable
2to any candidate for that office at the most recent spring or general election. The
3amount shall be drawn from the senate campaign account and the assembly
4campaign account in the same proportions as the balance in each account bears to
5the total balance in both accounts at the time that payments are made. Whenever
6there are insufficient moneys in the senate campaign account and the assembly
7campaign account to make the payments required by this paragraph, payments shall
8be appropriately reduced or discontinued by the board.
SB7,39,139 (d) Within Except as provided in par. (e) and sub. (9) (b), within the accounts
10established under this subsection for each office at each general election, the entire
11amount of all available moneys shall be apportioned equally to all eligible
12candidates, based on the assumption that all candidates who are eligible under sub.
13(2) (bm) 1. will also be eligible under sub. (2) (bm) 2
.
SB7, s. 61 14Section 61. 11.50 (4) (e) of the statutes is created to read:
SB7,39,2415 11.50 (4) (e) If an eligible candidate for state office who receives and accepts a
16grant is opposed by an opponent who meets the applicable vote qualification
17requirement under sub. (1) (a), and the board notifies the eligible candidate under
18s. 11.12 (6) (a) that an individual or committee acting independently has incurred or
19intends to incur an obligation or has made or intends to make a disbursement in
20opposition to the eligible candidate or in support of his or her opponent specified in
21this paragraph, the eligible candidate shall receive a supplementary grant
22equivalent to the amount of the proposed or actual obligation or disbursement. The
23board shall direct the state treasurer to make payment of the supplementary grant
24within 5 days after receipt of a report specified in this paragraph.
SB7, s. 62 25Section 62. 11.50 (6) of the statutes is amended to read:
SB7,40,5
111.50 (6) Excess moneys. If the amounts which are to be apportioned to each
2eligible candidate under subs. (3) and (4) are more than the amount which a
3candidate may accept under sub. (9), more than the amount for which the candidate
4qualifies under sub. (2) (bm),
or more than the amount which a candidate elects to
5accept under sub. (10), the excess moneys shall be retained in the fund.
SB7, s. 63 6Section 63. 11.50 (9) of the statutes is renumbered 11.50 (9) (a) and amended
7to read:
SB7,40,198 11.50 (9) (a) The total grant available to an eligible candidate who does not
9receive a supplementary grant under par. (b) or sub. (3) (c) or (4) (e)
may not exceed
10that amount which, when added to all other contributions accepted from sources
11other than individuals, and political party committees and legislative campaign
12committees
, is equal to 45% of the disbursement level specified for candidates for the
13applicable office other than candidates challenging incumbent officeholders, as
14determined
under s. 11.31 (1) and adjusted as provided under s. 11.31 (9). The total
15grants available to an eligible candidate who receives a supplementary grant under
16par. (b) or sub. (3) (c) or (4) (e) may not exceed the amount authorized under s. 11.26
17(9) (a). For the purposes of this paragraph, all contributions transferred to the
18candidate by a conduit shall be considered to have been accepted from a source other
19than an individual or political party committee
.
SB7,40,23 20(c) The board shall scrutinize accounts and reports and records kept under this
21chapter to assure that applicable limitations under ss. 11.26 (9) and 11.31 are not
22exceeded and any violation is reported. No candidate or campaign treasurer may
23accept grants exceeding the amount authorized by this subsection.
SB7, s. 64 24Section 64. 11.50 (9) (b) of the statutes is created to read:
SB7,41,10
111.50 (9) (b) If an eligible candidate who accepts a grant is opposed by one or
2more eligible candidates in the election who do not accept a grant under this section,
3the total grant available to the eligible candidate shall be increased by an amount
4equal to 45% of the disbursement level specified for candidates for the applicable
5office other than candidates challenging incumbent officeholders, as determined
6under s. 11.31 (1) and adjusted as provided under s. 11.31 (9), unless each such
7opponent files an affidavit of voluntary compliance under s. 11.31 (2m). The board
8shall direct the state treasurer to make payment of the supplementary grant within
95 days after it determines that a candidate qualifies to receive the grant under this
10paragraph.
SB7, s. 65 11Section 65. 11.60 (1) of the statutes is amended to read:
SB7,41,1412 11.60 (1) Any Except as provided in sub. (3m), any person, including any
13committee or group, who or which violates this chapter may be required to forfeit not
14more than $500 for each violation.
SB7, s. 66 15Section 66. 11.60 (3m) of the statutes is created to read:
SB7,41,2116 11.60 (3m) Any person, including any committee or group, who or which
17violates s. 11.095 in respect to any telephone communication in which the caller
18engages in persuasive telephoning shall forfeit $1,000, or $1 for each such telephone
19communication with an individual that is subject to disclosure under s. 11.095 which
20the person fails to disclose under that section within the time prescribed under that
21section, whichever is greater.
SB7, s. 67 22Section 67. 11.61 (1) (a) of the statutes is amended to read:
SB7,41,2523 11.61 (1) (a) Whoever intentionally violates s. 11.05 (1), (2), (2g) or (2r), 11.07
24(1) or (5), 11.10 (1), 11.12 (5), 11.23 (6) or 11.24 (1) may be fined not more than $10,000
25or imprisoned not more than 3 years or both.
SB7, s. 68
1Section 68. 13.14 (3) of the statutes is amended to read:
SB7,42,62 13.14 (3) Travel; legislative personnel. The actual and necessary expenses
3of legislative policy research personnel, assistants to legislators and research staff
4assigned to legislative committees and party caucuses incident to attending
5meetings outside the capital shall be reimbursed from the appropriation under s.
620.765 (1) (a) or (b).
SB7, s. 69 7Section 69. 13.20 (1) of the statutes is amended to read:
SB7,42,148 13.20 (1) Number and pay range of legislative employes. The legislature or
9either house thereof may employ under the unclassified service such policy research
10personnel, assistants to legislators, research staff assigned to legislative committees
11and party caucuses and such clerical, professional or other assistants as in the
12judgment of the joint committee on legislative organization or the committee on
13organization in each house are necessary to enable it to perform its functions and
14duties and to best serve the people of this state.
SB7, s. 70 15Section 70. 15.07 (1) (a) 2. of the statutes is repealed.
SB7, s. 71 16Section 71. 15.61 of the statutes is amended to read:
SB7,43,4 1715.61 Elections board; creation. There is created an elections board
18consisting of persons who shall be 6 members appointed by the governor for 2-year
196-year terms as follows: one member selected by the governor; one member each
20designated by the chief justice of the supreme court, the speaker of the assembly, the
21senate majority leader, the minority leader in each house of the legislature, and the
22chief officer of each political party qualifying for a separate ballot under s. 5.62 (1)
23(b) or (2) whose candidate for governor received at least 10% of the vote in the most
24recent gubernatorial election
. No member may hold any other office or employment
25in the government of this state or any political subdivision thereof or in any

1department. No member, for one year immediately prior to the date of appointment,
2may have been, or while serving on the board may become, a member of a political
3party, an officer or member of a committee in any partisan political club or
4organization or a candidate for any partisan elective public office
.
SB7, s. 72 5Section 72. 19.42 (10) (a) of the statutes is repealed.
SB7, s. 73 6Section 73. 20.510 (1) (d) of the statutes is created to read:
SB7,43,117 20.510 (1) (d) Election campaign fund supplement. A sum sufficient to
8supplement the Wisconsin election campaign fund for the purpose of enabling all
9eligible candidates to receive the maximum grant for which the candidates qualify
10under s. 11.50 (9), to be transferred to the Wisconsin election campaign fund no later
11than the time required to enable timely payments to be made under s. 11.50 (5).
SB7, s. 74 12Section 74. 20.510 (1) (i) of the statutes is created to read:
SB7,43,1513 20.510 (1) (i) Electronic filing software. All moneys received from registrants
14who purchase software to be utilized for electronic filing of campaign finance reports
15under s. 11.21 (16), for the purpose of providing that software.
SB7, s. 75 16Section 75. 20.510 (1) (q) of the statutes is amended to read:
SB7,43,2117 20.510 (1) (q) Wisconsin election campaign fund. As a continuing
18appropriation, from the Wisconsin election campaign fund, the moneys determined
19under s. 11.50 to provide for payments to eligible candidates whose names are
20certified under s. 7.08 (2) (c) and (cm) and to provide for public information as
21authorized under s. 11.50 (2m)
.
SB7, s. 76 22Section 76. 20.923 (6) (h) of the statutes is amended to read:
SB7,43,2523 20.923 (6) (h) Legislature: policy research personnel, assistants to legislators,
24research staff assigned to legislative committees and party caucuses and other
25persons employed under s. 13.20.
SB7, s. 77
1Section 77. 25.42 of the statutes is amended to read:
SB7,44,8 225.42 Wisconsin election campaign fund. All moneys appropriated under
3s. ss. 20.510 (1) (d) and 20.855 (4) (b) together with all moneys deposited under ss.
48.35 (4) (a), 11.07 (5), 11.12 (2), 11.16 (2), 11.19 (1), (1m) and (6), 11.23 (2) and 11.38
5(6), all moneys
reverting to the state under s. 11.50 (8) and all gifts, bequests and
6devises received under s. 11.50 (13) constitute the Wisconsin election campaign fund,
7to be expended for the purposes of s. 11.50. All moneys in the fund not disbursed by
8the state treasurer shall continue to accumulate indefinitely.
SB7, s. 78 9Section 78. 71.05 (6) (a) 20. of the statutes is created to read:
SB7,44,1210 71.05 (6) (a) 20. Any amount deducted under section 162 (e) (1) of the Internal
11Revenue Code because of the exception contained in section 162 (e) (5) of the Internal
12Revenue Code.
SB7, s. 79 13Section 79. 71.07 (5) (a) 8. of the statutes is created to read:
SB7,44,1614 71.07 (5) (a) 8. Expenses under section 162 (e) (1) of the Internal Revenue Code
15that are deductible because of the exception contained in section 162 (e) (5) of the
16Internal Revenue Code.
SB7, s. 80 17Section 80. 71.10 (3) (a) of the statutes is amended to read:
SB7,44,2218 71.10 (3) (a) Every individual filing an income tax return who has a tax liability
19or is entitled to a tax refund may designate $1 $3 for the Wisconsin election campaign
20fund for the use of eligible candidates under s. 11.50. If the individuals filing a joint
21return have a tax liability or are entitled to a tax refund, each individual may make
22a designation of $1 $3 under this subsection.
SB7, s. 81 23Section 81. 71.26 (1) (a) of the statutes is amended to read:
SB7,45,2524 71.26 (1) (a) Certain corporations. Income of corporations organized under ch.
25185, except income of a cooperative sickness care association organized under s.

1185.981, or of a service insurance corporation organized under ch. 613, that is derived
2from a health maintenance organization as defined in s. 609.01 (2) or a limited
3service health organization as defined in s. 609.01 (3), or operating under subch. I
4of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any
5shareholder or member, or operated on a cooperative plan pursuant to which they
6determine and distribute their proceeds in substantial compliance with s. 185.45,
7and the income, except the unrelated business taxable income as defined in section
8512 of the internal revenue code and except income that is derived from a health
9maintenance organization as defined in s. 609.01 (2) or a limited service health
10organization as defined in s. 609.01 (3), of all religious, scientific, educational,
11benevolent or other corporations or associations of individuals not organized or
12conducted for pecuniary profit. In computing unrelated business taxable income for
13the purposes of this paragraph, the expenses that are deductible under section 162
14(e) (1) of the Internal Revenue Code because of the exception contained in section 162
15(e) (5) of the Internal Revenue Code may not be deducted.
This paragraph does not
16apply to the income of savings banks, mutual loan corporations or savings and loan
17associations. This paragraph applies to the income of credit unions except to the
18income of any credit union that is derived from public deposits for any taxable year
19in which the credit union is approved as a public depository under ch. 34 and acts as
20a depository of state or local funds under s. 186.113 (20). For purposes of this
21paragraph, the income of a credit union that is derived from public deposits is the
22product of the credit union's gross annual income for the taxable year multiplied by
23a fraction, the numerator of which is the average monthly balance of public deposits
24in the credit union during the taxable year, and the denominator of which is the
25average monthly balance of all deposits in the credit union during the taxable year.
SB7, s. 82
1Section 82. 71.26 (2) (b) 1g. of the statutes is created to read:
SB7,46,72 71.26 (2) (b) 1g. In computing the net income under this paragraph of a
3corporation, conduit or common law trust that qualifies as a regulated investment
4company, real estate mortgage investment conduit or real estate investment trust,
5expenses that are deductible under section 162 (e) (1) of the Internal Revenue Code
6because of the exception contained in section 162 (e) (5) of the Internal Revenue Code
7may not be deducted.
SB7, s. 83 8Section 83. 71.26 (3) (e) 4. of the statutes is created to read:
SB7,46,119 71.26 (3) (e) 4. So that expenses that are deductible under section 162 (e) (1)
10of the Internal Revenue Code because of the exception contained in section 162 (e)
11(5) of the Internal Revenue Code may not be deducted.
SB7, s. 84 12Section 84. 71.34 (1) (ad) of the statutes is created to read:
SB7,46,1513 71.34 (1) (ad) The expenses that are deductible under section 162 (e) (1) of the
14Internal Revenue Code because of the exception contained in section 162 (e) (5) of the
15Internal Revenue Code may not be deducted.
SB7, s. 85 16Section 85. 71.45 (2) (a) 15. of the statutes is created to read:
SB7,46,1917 71.45 (2) (a) 15. By adding to federal taxable income the amount of any
18expenses that are deductible under section 162 (e) (1) of the Internal Revenue Code
19because of the exception contained in section 162 (e) (5) of the Internal Revenue Code.
SB7, s. 86 20Section 86. 230.08 (2) (f) of the statutes is amended to read:
SB7,46,2321 230.08 (2) (f) All legislative officers and, in addition, policy research personnel,
22assistants to legislators, research staff assigned to legislative committees and party
23caucuses
and other persons employed under s. 13.20.
SB7, s. 87 24Section 87. Nonstatutory provisions.
SB7,47,10
1(1) Initial terms of office. The members of the elections board who are serving
2on the effective date of this subsection may continue to hold office until all members
3of the elections board who are initially appointed under this act are nominated by the
4governor and with the advice and consent of the senate appointed and qualified, at
5which time the members who are serving on the effective date of this subsection shall
6cease to hold office. Notwithstanding section 15.61 of the statutes, as affected by this
7act, of the members of the elections board who are initially appointed under this act,
8the governor shall designate 2 members to serve for terms expiring on May 1, 1999,
92 members to serve for terms expiring on May 1, 2001, and 2 members to serve for
10terms expiring on May 1, 2003.
SB7,47,1111 (2) Elimination of partisan caucus staffs.
SB7,47,1412 (a) The authorized FTE positions for the assembly, funded from the
13appropriation under section 20.765 (1) (a) of the statutes, are decreased by 30.0 GPR
14positions on July 1, 1998, to eliminate staffing of party caucuses.
SB7,47,1715 (b) The authorized FTE positions for the senate, funded from the appropriation
16under section 20.765 (1) (b) of the statutes, are decreased by 24.0 GPR positions on
17July 1, 1998, to eliminate staffing of party caucuses.
SB7, s. 88 18Section 88. Initial applicability.
SB7,47,2019 (1) Except as provided in subsections (2) to (4 ), this act first applies to elections
20held on January 1, 1999.
SB7,47,2321 (2) The treatment of sections 11.21 (16) and 20.510 (1) (i) of the statutes first
22applies with respect to campaign finance reports that are required to be filed after
23June 30, 1999.
SB7,48,224 (3) The treatment of sections 11.50 (2m) and (6), 71.05 (6) (a) 20., 71.07 (5) (a)
258., 71.10 (3) (a), 71.26 (1) (a), (2) (b) 1g. and (3) (e) 4., 71.34 (1) (ad) and 71.45 (2) (a)

115. of the statutes first applies to tax returns for taxable years beginning on January
21, 1998.
SB7,48,43 (4) The treatment of section 11.31 (9) of the statutes first applies to adjustment
4of disbursement limitations for the biennium beginning on January 1, 1999.
SB7, s. 89 5Section 89. Effective dates. This act takes effect on the day after
6publication, except as follows:
SB7,48,87 (1) The treatment of sections 13.14 (3), 13.20 (1), 20.923 (6) (h) and 230.08 (2)
8(f) of the statutes takes effect on July 1, 1998.
SB7,48,109 (2) The treatment of section 20.510 (1) (d) of the statutes takes effect on
10January 1, 1999.
SB7,48,1111 (End)
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