SB111: Bill Text

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. Currently, a candidate is no longer bound by disbursement limitations after the last day of the month following the election in which the candidate appears on the ballot. 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.

Currently, a candidate may use moneys in his or her campaign treasury for any political purpose not prohibited by law.

This bill:

1. Provides that all candidates for partisan state offices need receive contributions from individuals 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 must be in amounts of $50 of or less. The bill also provides that at least 50% of the qualifying contributions must be received from individuals who are residents of this state and, in the case of a candidate for legislative office, at least 50% of the contributions must be received from individuals who reside in the district in which the candidate seeks office.

2. Increases the maximum grant that a candidate may receive to 50% of the authorized disbursement level for the office which the candidate seeks, irrespective of contributions received from other sources.

3. Retains the current system of grants from a "general account" for which moneys may be designated by tax filers, except that it increases by 50% the amounts allocated for the offices of justice of the supreme court and state superintendent of public instruction. Under the bill, amounts otherwise payable from the general account to a candidate who reaches this limit are redistributed to other qualifying candidates who have not reached this limit, if any.

4. Permits political parties that qualify for a separate column or row on the ballot at the general election to obtain grants from checkoffs made by tax filers. The bill provides for 9.7% of the moneys designated for political parties by tax filers to be paid directly as grants to the designated parties to be used for specified multicandidate expenses. Under the bill, disbursements made by a political party from such a grant are not considered to be in-kind contributions to the candidates who benefit from the disbursements. The bill provides for 97% of the remaining moneys designated by tax filers to be paid to candidates of the designated parties for state offices, except the office of district attorney, in accordance with an apportionment formula specified in the bill that takes into account, in the case of candidates for legislative office, the votes cast for candidates of the designated party for partisan state offices, except the office of district attorney, within each legislative district. Amounts otherwise payable to a candidate who would qualify to receive a grant if the candidate had an opponent are redistributed to the parties for multicandidate expenses. Amounts otherwise payable to a candidate for an office for which a party has no candidate or to a candidate who is opposed but who fails to qualify for a grant are lapsed to the state general fund.

5. Provides that an agreement by a candidate for state office to be bound by contribution and disbursement limitations becomes effective on the first day of the second month following the previous election for an office, or the date that the application containing the agreement is filed, whichever is later. An application may be filed no later than the deadline provided under current law. An agreement remains binding until the end of the month following the month in which the election is held for which a grant is provided, unless the board determines that the candidate who entered into the agreement does not qualify for a grant or unless the candidate who enters into the agreement becomes a candidate at a special election.

6. Provides for grants payable to candidates for state office at special elections to be payable in full from general purpose revenue.

Penalties for violations

Currently, violators of the campaign finance law are subject to a forfeiture (civil penalty) of not more than $500 for each violation, except that violators of contribution limitations are subject to a forfeiture of not more than treble the amount unlawfully contributed. In addition, intentional violators are guilty of a misdemeanor and are subject to a fine of not more than $1,000 or imprisonment for not more than six months or both. This bill provides, in addition, that, if any candidate or campaign treasurer of a candidate who accepts a grant violates the agreement to limit self-contributions and disbursements that was entered into by that candidate, the candidate is personally liable for a forfeiture of not more than four times the amount of any unlawful contributions or disbursements made.

Currently, if a candidate or any other registrant violates the campaign finance law, any forfeitures incurred by the registrant may be paid from the campaign depository account of the registrant. This bill provides that no moneys derived from contributions that are reportable under the campaign finance law may be used to pay any forfeiture incurred by a candidate or candidate's campaign treasurer. Under the bill, if a candidate or candidate's campaign treasurer violates the law, the candidate is personally liable for payment of the forfeiture. A campaign treasurer and personal campaign committee also remain liable for payment of any forfeitures that they incur.

Initial applicability

All campaign finance changes under the bill apply to elections held on or after the day on which the bill becomes law.

Political contribution refund

This bill permits any individual who is a resident of this state and of eligible voting age to request a refund from the department of revenue of not more than $50 per year for any contribution or contributions of money made to a qualifying candidate for state office or political party. The bill also permits two married individuals who are both residents of this state and are of eligible voting age to file a joint request for a refund of not more than $100 per year for such contributions made jointly or individually. In order to qualify for a refund, a contribution must be made to a political party that has qualified for a separate ballot or one or more separate columns or rows on a ballot or to a candidate for state office who has filed a valid application to receive a grant from the Wisconsin election campaign fund, together with a binding agreement to abide by disbursement and self-contribution limitations, and has qualified to receive a grant. For a contribution to a candidate to be eligible for a refund, the candidate must have a signed agreement in effect at the time that a contribution is made. The refunds are made by the department of revenue from general purpose revenue.

Campaign treasury surplus earnings tax

This bill imposes a tax on every candidate and personal campaign committee at the rate of 15% on the earnings received by that candidate or committee on any campaign treasury surplus during the period beginning on the first day of the month following an election at which a candidate appears on the ballot (except a primary election if the candidate was nominated at the primary to appear on the ballot at a subsequent election) and ending on the date that the candidate files a valid declaration of candidacy together with valid nomination papers, if required, to appear on the ballot at a succeeding election. The tax is payable to the department of revenue semiannually.

Tax deductions for lobbying expenses

This bill eliminates a current corporate 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.

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:

SB111, s. 1 Section 1. 7.08 (2) (cs) of the statutes is created to read:

SB111,11,3 7.08 (2) (cs) In each even-numbered year, certify to the state treasurer for the period beginning with the month following certification and ending with the month in which the next certification is made by the board:

SB111,11,7 1. No later than July 1, the name of each political party that qualifies under s. 11.50 (1) (am) 1. as an eligible political party as of the preceding June 1 and whose state chairperson has filed a request to establish an account for the party under s. 11.50 (2s) (a).

SB111,11,11 2. No later than December 15, the name of each political party that qualifies under s. 11.50 (1) (am) 2. as an eligible political party as of the date of the preceding general election and whose state chairperson has filed a written request to establish an account for the party under s. 11.50 (2s) (a).

SB111, s. 2 Section 2. 11.01 (5m) of the statutes is amended to read:

SB111,11,17 11.01 (5m) "Conduit" means an individual who or an organization a committee which receives a contribution of money and transfers the contribution to another individual or organization committee without exercising discretion as to the amount which is transferred and the individual to whom or organization committee to which the transfer is made.

SB111, s. 3 Section 3. 11.01 (9m) of the statutes is created to read:

SB111,11,23 11.01 (9m) "First-time candidate" means a candidate who seeks a particular state office for the first time and who has not previously been a candidate for any other national, state or local office in a jurisdiction or district which includes at least one-third of the residents who reside in the jurisdiction or district in which the candidate seeks office, as determined by the board.

SB111, s. 4 Section 4. 11.05 (14) of the statutes is created to read:

SB111,12,11 11.05 (14) Presumption concerning certain communications. Whenever any person publishes, disseminates or broadcasts, or causes to be published, disseminated or broadcast, any communication that includes a reference to a clearly identified candidate for an office to be filled at a general, spring or special election, during the 60-day period preceding that election or during the 30-day period preceding any primary for that election, and the communication is substantially directed toward the electorate at that election, it is presumed that the communication is made for the purpose of influencing the election or nomination for election of that candidate, unless the person making the communication or causing the communication to be made establishes, by a preponderance of the evidence, that the communication was not made for that purpose.

SB111, s. 5 Section 5. 11.06 (1) (a) of the statutes is amended to read:

SB111,12,18 11.06 (1) (a) An itemized statement giving the date, full name and street address of each contributor who has made a contribution in excess of $20, or whose contribution 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.

SB111, s. 6 Section 6. 11.06 (1) (d) and (L) of the statutes are amended to read:

SB111,12,22 11.06 (1) (d) An itemized statement of other income in excess of $20, including interest, returns on investments, rebates and refunds received and a separate statement of earnings received, including interest and returns on investments.

SB111,12,25 (L) A statement of cumulative totals for the calendar year of contributions made, contributions received, and disbursements made, including transfers of funds made to or received from other registrants, and earnings received.

SB111, s. 7 Section 7. 11.06 (2) of the statutes is amended to read:

SB111,13,12 11.06 (2) Disclosure of certain indirect disbursements. Notwithstanding sub. (1), if a disbursement is made or obligation incurred by an individual other than a candidate or by a committee or group which is not primarily organized for political purposes, and the disbursement does not constitute a contribution to any candidate or other individual, committee or group, the disbursement or obligation is required to be reported only if the purpose is to expressly advocate the election or defeat of a clearly identified candidate or the adoption or rejection of a referendum or if the disbursement is made or the obligation is incurred for the purpose of making a communication specified in s. 11.05 (14). The exemption provided by this subsection shall in no case be construed to apply to a political party, legislative campaign, personal campaign or support committee.

SB111, s. 8 Section 8. 11.06 (11) (c) of the statutes is amended to read:

SB111,13,16 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).

SB111, s. 9 Section 9. 11.10 (1) of the statutes is amended to read:

SB111,14,9 11.10 (1) Each candidate in an election shall appoint one campaign treasurer. Except as provided in s. 11.14 (3), each candidate shall designate one campaign depository account within 5 business days after the candidate receives his or her first contribution and before the candidate makes or authorizes any disbursement in behalf of his or her candidacy. If a candidate adopts a preexisting support committee as his or her personal campaign committee, the candidate shall make such designation within 5 business days of adoption. The person designated as campaign treasurer shall be the treasurer of the candidate's personal campaign committee, if any. The candidate may appoint himself or herself or any other elector as campaign treasurer. A registration statement under s. 11.05 (2g) or (2r) must be filed jointly by every candidate and his or her campaign treasurer. The candidate does not qualify for ballot placement until this requirement is met. Except as authorized under s. 11.06 (5), the campaign treasurer or candidate shall certify as to the correctness of each report required to be filed, and the. The candidate who appoints a campaign treasurer bears the responsibility for the accuracy of each report acts of the treasurer for purposes of civil liability under this chapter , whether or not the candidate certifies it personally.

SB111, s. 10 Section 10. 11.12 (1) (c) of the statutes is amended to read:

SB111,14,15 11.12 (1) (c) Where a disbursement is made in support of more than one candidate, the person making the disbursement shall be apportioned reasonably among apportion the disbursement as contributions to the candidates who benefit from the disbursement. This paragraph does not apply to any disbursement made by a political party from a grant received under s. 11.50 (2s) (b).

SB111, s. 11 Section 11. 11.14 (1) of the statutes is amended to read:

SB111,15,5 11.14 (1) Except as authorized in sub. (3) and as required by s. ss. 11.16 (5) and 11.50 (2s) (h), all funds received by a campaign or committee treasurer, group treasurer, candidate or other individual shall be deposited by the treasurer in a single separate campaign depository account designated in accordance with s. 11.16 (3). Except as authorized in sub. (3), the depository account shall be established by every candidate no later than the time prescribed in s. 11.10 (1), and by every other individual or treasurer no later than the 5th business day after becoming subject to a registration requirement under s. 11.05 and before making any disbursement. The depository account may be established with any financial institution as defined in s. 705.01 (3) which is authorized to transact business in this state. The individual or treasurer shall deposit all funds received in the campaign depository account no later than the 5th business day commencing after receipt. This subsection does not apply to a contributor committee or group which is exempt from registration under s. 11.05 (8).

SB111, s. 12 Section 12. 11.14 (2) of the statutes is amended to read:

SB111,15,12 11.14 (2) After Except as otherwise provided in s. 11.50 (2s) (h), after deposit in the campaign depository account, funds may be transferred by the individual or treasurer to any other account which is identified under s. 11.05 (3) (L). Funds deposited in other accounts may not be directly disbursed but shall be returned to the depository account for purposes of disbursement. Disbursements shall be made only in accordance with s. 11.16 (3).

SB111, s. 13 Section 13. 11.16 (1) (d) of the statutes is renumbered 11.16 (1) (d) (intro.) and amended to read:

SB111,15,16 11.16 (1) (d) (intro.) This subsection does not apply to disbursements any of the following:

SB111,15,18 1. Disbursements and obligations which are exempted from reporting under s. 11.06 (2).

SB111, s. 14 Section 14. 11.16 (1) (d) 2. of the statutes is created to read:

SB111,15,22 11.16 (1) (d) 2. Disbursements made or obligations incurred by a political party from the proceeds of a grant received under s. 11.50 for a purpose specified in s. 11.50 (7) (c).

SB111, s. 15 Section 15. 11.21 (15) of the statutes is amended to read:

SB111,16,4 11.21 (15) Inform each candidate who files an application to become eligible to receive a grant from the Wisconsin election campaign fund of the dollar amount of the applicable disbursement limitation under s. 11.31 (1) or (1m), whichever is applicable, adjusted as provided under s. 11.31 (9), which applies to the office for which such person is a that candidate. Failure to receive the notice required by this subsection does not constitute a defense to a violation of s. 11.27 (1) or 11.31.

SB111, s. 16 Section 16. 11.21 (17) of the statutes is created to read:

SB111,16,11 11.21 (17) On or before February 15 and August 15, notify the campaign treasurer of each candidate who and personal campaign committee which owes a tax under subch. XIII of ch. 77, based on any continuing or termination report that was filed with the board covering the period ending on the preceding December 31 or June 30, respectively. The notice shall include an identification of the specific form prescribed for payment of the tax.

SB111, s. 17 Section 17. 11.22 (11) of the statutes is created to read:

SB111,16,18 11.22 (11) On or before February 15 and August 15, notify the campaign treasurer of each candidate who and personal campaign committee which owes a tax under subch. XIII of ch. 77, based on any continuing or termination report that was filed with the filing officer covering the period ending on the preceding December 31 or June 30, respectively. The notice shall include an identification of the specific form prescribed for payment of the tax.

SB111, s. 18 Section 18. 11.24 (1s) of the statutes is created to read:

SB111,16,24 11.24 (1s) No candidate or personal campaign committee may make a contribution to any person, committee or group subject to a registration requirement under s. 11.05 except to dispose of residual contributions at the time of filing a termination report. No candidate or personal campaign committee may accept a contribution made in violation of this subsection.

SB111, s. 19 Section 19. 11.24 (2) of the statutes is renumbered 11.24 (5).

SB111, s. 20 Section 20. 11.24 (4) of the statutes is created to read:

SB111,17,14 11.24 (4) No committee identified under s. 11.05 (3) (c) as a special interest committee, including a committee serving as a conduit, and no individual who is a conduit may make a contribution to an incumbent partisan state elective official or to the personal campaign committee or support committee authorized under s. 11.05 (3) (p) of that official for the purpose of promoting that official's nomination or reelection to the office held by the official during the period beginning on the first Monday of January in each odd-numbered year and ending on the date of enactment of the biennial budget act and thereafter during any legislative floorperiod, including any special or extraordinary session floorperiod. This subsection does not apply to a contribution made to an individual who is a candidate for state office at a special election or to the personal campaign committee of such an individual during the period commencing on the date that the special election is ordered and ending on the date of the special election.

SB111, s. 21 Section 21. 11.25 (2) (a) of the statutes is amended to read:

SB111,17,21 11.25 (2) (a) No Except as provided in par. (b) or as otherwise specifically provided by law, no person, committee or group may make or authorize a disbursement or the incurrence of an obligation from moneys solicited for political purposes for a contributions received by that person, committee or group for any purpose which is other than a political, except as specifically authorized by law purpose.

SB111, s. 22 Section 22. 11.25 (2) (b) of the statutes is amended to read:

SB111,18,11 11.25 (2) (b) Notwithstanding par. (a), a A registrant may accept contributions and make disbursements from a campaign depository account for the purpose of making expenditures in connection with a campaign for national office; for payment of civil penalties incurred by the registrant under this chapter , other than civil penalties incurred personally by a candidate or candidate's campaign treasurer; or for payment of the expenses of nonpartisan campaigns to increase voter registration or participation. Notwithstanding par. (a), a personal campaign committee or support committee may accept contributions and make disbursements from a campaign depository account for payment of inaugural expenses of an individual who is elected to state or local office. If such expenses are paid from contributions made to the campaign depository account, they are reportable under s. 11.06 (1) as disbursements. Otherwise, such expenses are not reportable under s. 11.06 (1). If contributions from the campaign depository account are used for such expenses, they are subject to s. 11.26.

SB111, s. 23 Section 23. 11.25 (4) of the statutes is created to read:

SB111,18,21 11.25 (4) If a candidate dies or ceases to be a candidate, and the candidate's personal campaign committee thereafter files a statement under s. 11.06 (7) indicating its intent to operate as an independent committee, the committee may not make any disbursement to advocate the election or defeat of a clearly identified candidate in an election that is derived in whole or in part from contributions received by the committee prior to the date on which the committee files the statement under s. 11.06 (7) in an amount or value exceeding the maximum contribution that the committee is permitted to make to that candidate in any campaign under s. 11.26 (2).

SB111, s. 24 Section 24. 11.26 (1) (intro.) of the statutes is amended to read:

SB111,19,2 11.26 (1) (intro.) No individual, except an individual serving as a conduit, may make any contribution or contributions to a candidate for election or nomination to any of the following offices and to any individual or committee under s. 11.06 (7) acting solely in support of such a candidate or solely in opposition to the candidate's opponent to the extent of more than a total of the amounts specified per candidate:

SB111, s. 25 Section 25. 11.26 (1) (a), (b) and (c) of the statutes are amended to read:

SB111,19,5 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent or justice, $10,000 $5,000.

SB111,19,6 (b) Candidates for state senator, $1,000 $500.

SB111,19,7 (c) Candidates for representative to the assembly, $500 $250.

SB111, s. 26 Section 26. 11.26 (2) (intro.) of the statutes is amended to read:

SB111,19,15 11.26 (2) (intro.) No committee, including a committee serving as a conduit, other than a political party committee or legislative campaign committee , may make or transfer any contribution or contributions to a candidate for election or nomination to any of the following offices and to any individual or committee under s. 11.06 (7) acting solely in support of such a candidate or solely in opposition to the candidate's opponent to the extent of more than a total of the amounts specified per candidate:

SB111, s. 27 Section 27. 11.26 (2) (a), (b) and (c) of the statutes are amended to read:

SB111,19,19 11.26 (2) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent or justice, 4% of the value of the disbursement level specified in the schedule under s. 11.31 (1) $1,000.

SB111,19,20 (b) Candidates for state senator, $1,000 $500.

SB111,19,21 (c) Candidates for representative to the assembly, $500 $250.

SB111, s. 28 Section 28. 11.26 (4) of the statutes is amended to read:

SB111,20,2 11.26 (4) No individual, except an individual serving as a conduit, may make any contribution or contributions to all candidates for state and local offices and to any individuals who or committees which are subject to a registration requirement under s. 11.05, including legislative campaign committees and committees of a political party, to the extent of more than a total of $10,000 in any calendar year.

SB111, s. 29 Section 29. 11.26 (9) (a) of the statutes is renumbered 11.26 (9) and amended to read: