SB7: 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 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 of 45% of a candidate's disbursement level, for the office which the candidate seeks, that a candidate may accept from committees other than political party and legislative campaign committees to a limitation of 15% of a candidate's disbursement level that a candidate may accept from committees other than political party committees. 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 election campaign fund are not subject to the 15% limitation.

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 by individuals under the age of 18 years to any candidate for a statewide office, state senator or representative to the assembly.

2. 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 made to an incumbent who is subject to a recall election from the date on which the petition for a recall election is filed until the date of the recall 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. Applying to contributions transferred by conduits the proposed 15% limit which applies to cumulative contributions that a candidate may accept from all committees other than political party committees.

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.

Disposition of residual or excess 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 or excess funds received by a registrant that may not be legally expended may generally be used for any lawful political purpose, returned to the original contributors or donated to a charitable organization or the common school fund.

The bill allows residual or excess funds to be transferred to the Wisconsin election campaign fund. The bill also requires residual contributions received by a personal campaign committee formed to support the campaign of a partisan state officeholder who seeks election to another office and, subsequently, decides not to run for that other office, which exceed 10% of the statutory disbursement level for the office that the candidate holds, to be either returned to the donors or transferred to the Wisconsin election campaign fund. In addition, the bill limits 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 candidate's personal campaign committee may carry over from a general election campaign to another campaign to not more than15% 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 "persuasive telephoning" as "contacting, by telephone, potential voters for the purpose of presenting them with information or viewpoints which could 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. In addition, before beginning persuasive telephoning, 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 telephoning is begun.

The bill requires every person who engages in or retains a telephone bank operator to engage in persuasive telephoning to provide to the elections board, upon request, 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 engage in or retain any other person to engage in persuasive telephoning to file a statement 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 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.

The bill also requires each candidate or personal campaign committee of a candidate 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 communication 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 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 $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 that lobbyists incur. 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 proposed 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 legislation or proposed legislation of direct interest to the taxpayer and the organization. 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, before distributions are made to candidate office accounts, to provide public information 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 income tax preparation instructions related to the tax checkoff.

4. 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.

The tax changes made by the bill first apply to tax returns for taxable years commencing on or after January 1, 1998.

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 which applicants meet the following eligibility requirements:

1. A candidate for a partisan state office at a general election must have received at least 6% of the total votes cast in the primary and won the primary. A candidate for a partisan state office at a special election 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 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, political party committees and legislative campaign committees, is equal to 45% of the authorized 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 receive 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 determine 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 receive 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 contributions 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. Provides that, if a candidate who accepts a grant is notified by the elections board that an individual or committee acting independently of any candidate has incurred or intends to incur, or has made or intends to make, a disbursement in opposition to the candidate or in support of his or her opponent, the candidate must be given a supplementary grant from the Wisconsin election campaign fund in an amount equivalent to the proposed or actual obligation or disbursement.

5. 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 (45% 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.

Electronic 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. Candidates for state office or their personal campaign or authorized support committees and other individuals, committees and groups supporting or opposing candidates for state office or statewide ballot questions file their reports with the state elections board.

The bill directs the board to accept a campaign finance report that is filed by means of electronic transmission from any registrant for whom the board serves as a filing agency. The bill also directs the board to make available to registrants software that is designed to facilitate complete electronic filing of campaign finance reports at a price that may not exceed cost. Under the bill, any registrant who or which files a report electronically must also file a copy of the report recorded on a medium prescribed by the board, together with a computer-generated copy of the report printed on paper. The paper copy must be signed and filed no later than the date currently prescribed by law for filing of the report. The bill directs the board to provide complete instructions to any registrant who or which wishes to file reports electronically under the bill.

Initial applicability

All campaign finance changes under the bill apply to elections held on or after January 1, 1999.

Composition of the elections board

Currently, the elections board consists of 8 members appointed by the governor for 2-year terms without senate confirmation. One member is selected by the governor and one member each is designated by the chief justice of the supreme court, the speaker of the assembly, the senate majority leader, the minority leader in each house of the legislature, and the chief officer of each political party qualifying for a separate ballot or column on the ballot whose candidate for governor received at least 10% of the vote in the most recent gubernatorial election.

The bill recreates the board to consist of 6 members appointed by the governor for staggered 6-year terms, subject to senate confirmation. Under the bill, no member may hold any other office or employment in the government of this state or any political subdivision thereof or in any department of state government. In addition, no member, for one year immediately prior to the date of appointment, may have been, or while serving on the board may become, a member of a political party, an officer or member of a committee in any partisan political club or organization or a candidate for any partisan elective public office.

Under the bill, the members of the current board serve until all of the members of the board who are appointed under the bill qualify for office, at which time the current members are replaced.

Elimination of legislative partisan caucus staffs

Currently, the joint committee on legislative organization (JCLO) or either house of the legislature may employ such number of research staff assigned to legislative party caucuses as in the judgment of JCLO or the committee on organization of either house are necessary to enable it to perform its functions and duties and to best serve the people of this state. The bill deletes this authority and deauthorizes all positions that are currently assigned to legislative party caucuses beginning on July 1, 1998.

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:

SB7, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

SB7,11,7 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 and organized exclusively for political purposes under whose name candidates appear on a ballot at any election, and all county, congressional, legislative, local and other affiliated committees authorized to operate under the same name. For purposes of ch. 11, the term does not include a legislative campaign committee or a committee filing an oath under s. 11.06 (7).

SB7, s. 2 Section 2. 5.05 (1) (b) of the statutes is amended to read:

SB7,12,2 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 defined 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 violation. 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.

SB7, s. 3 Section 3. 7.08 (2) (c) and (cm) of the statutes are amended to read:

SB7,12,21 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 determines to be eligible to receive payments from the Wisconsin election campaign fund. The board shall also transmit a similar list of candidates whom the board determines to be eligible to receive a supplementary grant under s. 11.50 (3) (c), (4) (e) or (9) (b) within 5 days after the candidates qualify to receive the grants. Each 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 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 supplemental payments under s. 11.50 (2) (bm) 2.

SB7,13,14 (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 supplementary grant under s. 11.50 (1) (a) 2. after the special election. The (4) (e) or (9) (b) within 5 days after the candidates qualify to receive the grants. Each 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.

SB7, s. 4 Section 4. 8.16 (5) of the statutes is repealed.

SB7, s. 5 Section 5. 8.35 (4) (a) 1. a. and b. of the statutes are amended to read:

SB7,13,24 8.35 (4) (a) 1. a. Donated to the former candidate's local or state political party if If the former candidate was a partisan candidate or, donated to the former candidate's local or state political party, donated to the a charitable organization of the former candidate's choice or the charitable organization chosen or transferred to the board for deposit in the Wisconsin election campaign fund, as instructed by the former candidate or, if the candidate made no choice, by the former candidate's next of kin if the former candidate is deceased, or if no choice is made returned to the donors on a proportional basis; or

SB7,14,5 b. If the former candidate was a nonpartisan candidate, donated to the a charitable organization of the former candidate's choice or the charitable organization chosen or transferred to the board for deposit in the Wisconsin election campaign fund, as instructed by the former candidate or, if the candidate made no choice, by the former candidate's next of kin if the former candidate is deceased; or

SB7, s. 6 Section 6. 10.02 (3) (b) 2m. of the statutes is amended to read:

SB7,14,15 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 candidates 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 candidate, 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.

SB7, s. 7 Section 7. 11.01 (12s) of the statutes is repealed.

SB7, s. 8 Section 8. 11.05 (3) (c) of the statutes is amended to read:

SB7,14,21 11.05 (3) (c) In the case of a committee, a statement as to whether the committee is a personal campaign committee, a political party committee, a legislative campaign committee, a support committee or a special interest committee.

SB7, s. 9 Section 9. 11.05 (3) (m) of the statutes is created to read:

SB7,14,25 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.

SB7, s. 10 Section 10. 11.05 (3) (o) of the statutes is repealed.

SB7, s. 11 Section 11. 11.05 (3) (q) and (r) of the statutes are created to read:

SB7,15,6 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.

SB7,15,9 (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.

SB7, s. 12 Section 12. 11.05 (9) (b) of the statutes is amended to read:

SB7,15,16 11.05 (9) (b) An individual who or a committee or group which receives a contribution of money and transfers the contribution to another individual, committee or group while acting as a conduit is not subject to registration under this section unless the individual, committee or group transfers the contribution to a candidate or a personal campaign, legislative campaign, political party or support committee.

SB7, s. 13 Section 13. 11.06 (1) (a) of the statutes is amended to read: