SB113: Bill Text

3. For a candidate for the office of secretary of state, state treasurer, state superintendent of public instruction or justice of the supreme court, $100,000.

4. For a candidate for the office of state senator, $75,000.

5. For a candidate for the office of representative to the assembly, $37,500.

Under the bill, a candidate is not subject to the limitation upon contributions by a single individual to his or her campaign.

Under the bill, the aggregate contribution limitations are subject to a biennial cost-of-living adjustment, beginning in 2002, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

Other contribution restrictions

This bill prohibits every candidate for a major state office (governor, lieutenant governor, attorney general, secretary of state, state treasurer, superintendent of public instruction or justice of the supreme court) from accepting any contribution during the period beginning on the tenth day preceding any election other than a primary election and ending on the date of that election.

Wisconsin election campaign fund

I. 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 at the general or a special election 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. Grants at special elections are funded by reallocating moneys set aside to provide grants to candidates at the general election, to the extent that moneys are available.

This bill changes the name of the Wisconsin election campaign fund to the "clean government fund". The bill deletes the checkoff procedure and provides, instead, for the revenue to the fund to be raised by levying a tax on lobbying expenditures (see below), with the balance to be transferred to the fund, as needed, from general purpose revenue.

II. 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 six percent 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 six percent of the vote; or b) receive at least six percent 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. The contributions may be received by the candidate directly from individuals or may be transferred to the candidate by a conduit. 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 five percent of the authorized disbursement level for the office that the candidate seeks. For a candidate for the office of state senator or representative to the assembly, the amount is ten percent of the authorized disbursement level for the office that 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 six percent 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 the amount that, 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 that 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.

This bill requires a candidate for any office who desires to qualify for a grant from the clean government fund to receive contributions from individuals, other than contributions transferred by conduits, in amounts of $100 or less in the following total amounts:

1. For candidates for the offices of governor and lieutenant governor jointly, $80,400.

2. For a candidate for the office of attorney general, $16,200.

3. For a candidate for the office of secretary of state, state treasurer, justice of the supreme court or state superintendent of public instruction, $8,040.

4. For a candidate for the office of state senator, $6,000.

5. For a candidate for the office of representative to the assembly, $3,000.

The bill also requires that the contributions must be received from individuals who are residents of this state and in the case of a candidate for legislative office, the contributions must be received from individuals who reside in the district in which the candidate seeks office.

In addition, the bill requires a candidate who seeks a grant to agree not to accept any contributions from special interest ("political action") committees.

The bill revises grant amounts to the following, irrespective of contributions received from other sources:

1. For candidates for the office of governor and lieutenant governor jointly, $670,000.

2. For a candidate for the office of attorney general, $135,000.

3. For a candidate for the office of secretary of state, state treasurer, superintendent of public instruction or justice of the supreme court, $67,000.

4. For a candidate for the office of state senator, $50,000.

5. For a candidate for the office of representative to the assembly, $25,000.

In addition to these amounts, the bill provides that a candidate who accepts a grant shall receive an additional grant in an amount equal to 1) the amount of any contributions that are received by committees for the purpose of making independent disbursements to oppose that candidate or to support that candidate's opponent; 2) the total amount of contributions that conduits report they have transferred or intend to transfer to opposing candidates; and 3) the total amount of contributions accepted by opposing candidates above the level for which 24-hour reports are required.

Under the bill, qualifying amounts and grant amounts are subject to a biennial cost-of-living adjustment, beginning in 2002, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

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, currently, any person who is delinquent in filing a report is subject to a forfeiture of not more than $50 or one percent of the annual salary of the office for which a candidate is being supported or opposed, whichever is greater, for each day of delinquency. Currently, any person who makes an unlawful contribution is subject to a forfeiture of treble the amount of the unlawful contribution.

Currently, whoever intentionally violates certain provisions of the campaign finance law, such as registration requirements, contribution limitations, the prohibition against making contributions in the name of another person, the prohibition against using contributions for most nonpolitical purposes and the prohibition against filing false reports and statements may be fined not more than $1,000 or imprisoned for not more than six months, or both, if the violation does not exceed $100 in amount or value, and may be fined not more than $10,000 or imprisoned for not more than three years, or both, if the violation exceeds $100 in amount or value.

This bill provides that if any candidate or other individual or committee, including a conduit, accepts or transfers a contribution, makes a disbursement or incurs an obligation to make a disbursement for the purpose of supporting or opposing a candidate for a major state office (governor, lieutenant governor, attorney general, secretary of state, state treasurer, state superintendent of public instruction or justice of the supreme court) or for the purpose of making certain communications by means of communications media (see above) without first registering and reporting to the extent required under the bill, the offender is subject to a forfeiture (civil penalty) of not more than $500 for each day of violation. The bill also provides that if any of these individuals or committees accepts or transfers one or more contributions, makes one or more disbursements or incurs one or more obligations to make disbursements for such a purpose in an amount that is more or less than the amount reported by that individual or committee:

l. By more than 5% but not more than 10%, the individual or committee must forfeit four times the amount of the difference.

2. By more than 10% but not more than 15%, the individual or committee must forfeit six times the amount of the difference.

3. By more than 15%, the individual or committee must forfeit eight times the amount of the difference.

The bill also provides that if the amount of contributions accepted or transferred, disbursements made or obligations incurred differs from the amount reported by at least 15%, and the violations are of sufficient severity to have affected the result of the election, the elections board, the district attorney for any county where a violation occurs or any candidate who is adversely affected by the result of the election in connection with which the violation occurred may file suit to have the election nullified and to have a new election ordered for the affected office.

In addition, the bill imposes a new penalty upon any person who, with intent to conceal or deceive, accepts or transfers a contribution, makes a disbursement or incurs an obligation to make a disbursement for the purpose of supporting or opposing a candidate for a major state office or for the purpose of making certain communications by means of communications media (see above) without registering or reporting to the extent required under the bill, consisting of a fine of not more than $10,000 or imprisonment for not more than five years, or both (equivalent to a class E felony).

Lobbying expenditure tax

This bill imposes a tax on lobbying principals (persons who employ lobbyists) at the rate of ten percent on lobbying expenditures that are reportable to the ethics board. The tax is payable to the department of revenue semiannually.

Nonseverability

Currently, if any part of an act is found by a court to be invalid, those parts that are valid are severed from the invalid part and the severed parts continue in force. This bill provides that if any part of the act resulting from enactment of the bill is found by a court to be invalid, then all parts of the act are void.

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:

SB113, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

SB113,11,7 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 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).

SB113, s. 2 Section 2. 5.02 (18) of the statutes is amended to read:

SB113,11,12 5.02 (18) "September primary" means the primary held the 2nd Tuesday in September to nominate candidates to be voted for at the general election, and to determine which candidates for state offices other than district attorney may participate in the Wisconsin election campaign clean government fund.

SB113, s. 3 Section 3. 7.08 (2) (c) and (cm) of the statutes are amended to read:

SB113,12,3 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 who the board determines to be eligible to receive payments from the Wisconsin election campaign clean government fund. The board shall also transmit a similar list of candidates who the board determines to be eligible to receive a grant under s. 11.50 (9) (b) or (ba) within 3 days after any candidate qualifies to receive such a grant. 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.

SB113,12,15 (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 who the board determines to be eligible to receive a grant from the Wisconsin election campaign clean government 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 who the board determines to be eligible to receive a grant under s. 11.50 (1) (a) 2. after the special election. The or a grant under s. 11.50 (9) (b) or (ba) within 3 days after any candidate qualifies to receive such a grant. 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.

SB113, s. 4 Section 4. 8.35 (4) (b) of the statutes is amended to read:

SB113,12,23 8.35 (4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the Wisconsin election campaign clean government fund shall be immediately transferred to any candidate who is appointed to replace such candidate, upon filing of a proper application therefor under s. 11.50 (2). If there is no candidate appointed or if no proper application is filed within 7 days of the date on which the vacancy occurs, such moneys shall revert to the state as provided in s. 11.50 (8).

SB113, s. 5 Section 5. 10.02 (3) (b) 2m. of the statutes is amended to read:

SB113,13,10 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 clean government 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.

SB113, s. 6 Section 6. 11.01 (5m) of the statutes is amended to read:

SB113,13,16 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.

SB113, s. 7 Section 7. 11.01 (12s) of the statutes is repealed.

SB113, s. 8 Section 8. 11.01 (16) (a) 3. of the statutes is created to read:

SB113,13,24 11.01 (16) (a) 3. A communication that is made by means of one or more communications media, other than a communication that is exempt from reporting under s. 11.29, that is made during the period beginning on the 60th day preceding an election and ending on the date of that election and that includes a reference to a candidate whose name is certified under s. 7.08 (2) (a) or 8.50 (1) (d) to appear on the ballot at that election, an office to be filled at that election or a political party.

SB113, s. 9 Section 9. 11.05 (3) (c) of the statutes is amended to read:

SB113,14,4 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.

SB113, s. 10 Section 10. 11.05 (3) (d) of the statutes is created to read:

SB113,14,6 11.05 (3) (d) An indication of whether the proposed registrant is a conduit.

SB113, s. 11 Section 11. 11.05 (3) (o) of the statutes is repealed.

SB113, s. 12 Section 12. 11.05 (9) (b) of the statutes is amended to read:

SB113,14,14 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.

SB113, s. 13 Section 13. 11.06 (2) of the statutes is amended to read:

SB113,15,2 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 incurred for a purpose is specified in s. 11.01 (16) (a) 3. 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.

SB113, s. 14 Section 14. 11.06 (7m) (a) of the statutes is amended to read:

SB113,15,18 11.06 (7m) (a) If a committee which was registered under s. 11.05 as a political party committee or legislative campaign committee supporting candidates of a political party files an oath under sub. (7) affirming that it does not act in cooperation or consultation with any candidate who is nominated to appear on the party ballot of the party at a general or special election, that the committee does not act in concert with, or at the request or suggestion of, such a candidate, that the committee does not act in cooperation or consultation with such a candidate or agent or authorized committee of such a candidate who benefits from a disbursement made in opposition to another candidate, and that the committee does not act in concert with, or at the request or suggestion of, such a candidate or agent or authorized committee of such a candidate who benefits from a disbursement made in opposition to another candidate, the committee filing the oath may not make any contributions in support of any candidate of the party at the general or special election or in opposition to any such candidate's opponents exceeding the amounts specified in s. 11.26 (2), except as authorized in par. (c).

SB113, s. 15 Section 15. 11.06 (7m) (c) of the statutes is amended to read:

SB113,16,2 11.06 (7m) (c) A committee filing an oath under sub. (7) which desires to change its status to a political party committee or legislative campaign committee may do so as of December 31 of any even-numbered year. Section 11.26 does not apply to contributions received by such a committee prior to the date of the change. Such a committee may change its status at other times only by filing a termination statement under s. 11.19 (1) and reregistering as a newly organized committee under s. 11.05.

SB113, s. 16 Section 16. 11.09 (3) of the statutes is amended to read:

SB113,16,14 11.09 (3) Each registrant whose filing officer is the board, who or which makes disbursements in connection with elections for offices which serve or referenda which affect only one county or portion thereof, except a candidate, personal campaign committee, political party committee or other committee making disbursements in support of or in opposition to a candidate for state senator, representative to the assembly, court of appeals judge or circuit judge, shall file a duplicate original of each financial report filed with the board with the county clerk or board of election commissioners of the county in which the elections in which the registrant participates are held. Such reports shall be filed no later than the applicable dates specified under s. 11.20 (2), (2e), (2m), (2s), (2t) and (4) for the filing of each report with the board.

SB113, s. 17 Section 17. 11.12 (5) of the statutes is amended to read:

SB113,17,2 11.12 (5) If Except as otherwise required under sub. (7), if any contribution or contributions of $500 or more cumulatively are received by a candidate for state office or by a committee or individual from a single contributor later than 15 days prior to a primary or election such that it is not included in the preprimary or preelection report submitted under s. 11.20 (3), the treasurer of the committee or the individual receiving the contribution shall within 24 hours of receipt inform the appropriate filing officer of the information required under s. 11.06 (1) in such manner as the board may prescribe. The information shall also be included in the treasurer's or individual's next regular report. For purposes of the reporting requirement under this subsection, only contributions received during the period beginning with the day after the last date covered on the preprimary or preelection report, and ending with the day before the primary or election need be reported.

SB113, s. 18 Section 18. 11.12 (6) of the statutes is renumbered 11.12 (6) (a) and amended to read:

SB113,17,21 11.12 (6) (a) If Except as provided in par. (b), if any disbursement of more than $20 cumulatively is made to advocate the election or defeat of a clearly identified candidate by an individual or committee later than 15 days prior to a primary or election in which the candidate's name appears on the ballot without cooperation or consultation with a candidate or agent or authorized committee of a candidate who is supported or opposed, and not in concert with or at the request or suggestion of such a candidate, agent or committee, the individual or treasurer of the committee shall, within 24 hours of making the disbursement, inform the appropriate filing officer of the information required under s. 11.06 (1) in such manner as the board may prescribe. The information shall also be included in the next regular report of the individual or committee under s. 11.20. For purposes of this subsection paragraph, disbursements cumulate beginning with the day after the last date covered on the preprimary or preelection report and ending with the day before the primary or election. Upon receipt of a report under this subsection paragraph, the filing officer shall, within 24 hours of receipt, mail a copy of the report to all candidates for any office in support of or opposition to one of whom a disbursement identified in the report is made.

SB113, s. 19 Section 19. 11.12 (6) (b) to (d) of the statutes are created to read:

SB113,18,6 11.12 (6) (b) 1. If any conduit has accepted or intends to accept any contribution to be transferred to a candidate or personal campaign committee of a candidate for a state office specified in s. 11.31 (1) (a) to (f) at the general or a special election, or to any such candidate who seeks a nomination for such an office at a primary election, the conduit shall report to the board at the times specified in s. 11.20 (2s), in such manner as the board may prescribe, the name of each candidate or personal campaign committee to whom the conduit intends to transfer one or more contributions during the 21-day period following the date on which the report is due to be filed and the amount to be transferred to that candidate or committee.

SB113,18,11 2. A conduit who or which is required to file reports under this paragraph shall also report to the board, at the times specified in s. 11.20 (2t), in such manner as the board may prescribe, the name of each candidate or personal campaign committee to whom the conduit transferred one or more contributions during the 21-day period ending on each date specified in s. 11.20 (2t) and the date and amount of that transfer.

SB113,18,25 (c) 1. If any committee identified under s. 11.05 (3) (c), other than a conduit, intends to receive any contribution, make any disbursement or incur any obligation to make a disbursement for the purpose of advocating the election or defeat of a clearly identified candidate for a state office specified in s. 11.31 (1) (a) to (f) at the general or a special election, or any such candidate who seeks a nomination for such an office at a primary election, without cooperation or consultation with a candidate or agent or authorized committee of a candidate who is supported or whose opponent is opposed, and not in concert with or at the request or suggestion of such a candidate, agent or committee, the committee shall report to the board at the times specified in s. 11.20 (2s), in such manner as the board may prescribe, the name of each candidate who is supported or whose opponent is opposed and the total amount of contributions to be received, disbursements to be made and obligations to be incurred for such a purpose in support or opposition to that candidate during the 21-day period following the date on which the report is due to be filed.

SB113,19,8 2. A committee which is required to file reports under this paragraph shall also report to the board, at the times specified in s. 11.20 (2t), in such manner as the board may prescribe, the amount and date of each contribution received, disbursement made or obligation incurred for the purpose of advocating the election or defeat of a candidate specified in this paragraph in the manner specified in this paragraph, and the name of the candidate in support of or in opposition to whom the contribution was received, disbursement made or obligation incurred, during the 21-day period ending on each date specified in s. 11.20 (2t).