SB181: Bill Text

Analysis by the Legislative Reference Bureau

This bill makes numerous changes in the campaign finance law affecting campaigns for the office of justice of the supreme court. The bill limits the application of the Wisconsin election campaign fund, under which eligible candidates for state offices (except district attorney, court of appeals judge and circuit judge) may receive public grants from state general purpose revenues derived from designations made by individuals filing state income tax returns, to state offices other than the office of justice of the supreme court. To finance elections for the office of justice of the supreme court, the bill creates a democracy trust fund, under which eligible candidates for this office may receive public grants derived from general purpose revenues.

Under the bill, a candidate for the office of justice of the supreme court may qualify for public financing from the democracy trust fund to finance a campaign in a primary or election by receiving a specified number of qualifying contributions of five dollars each made by electors of the state. A candidate who accepts public financing may accept "seed money" contributions in amounts of $100 or less, subject to aggregate limitations, and may contribute personal funds in specified amounts during specified periods. A candidate who accepts public financing may not accept any contributions other than qualifying and seed money contributions and contributions from personal funds, subject to specified limitations. Public financing benefits for eligible candidates are $100,000 in the primary election and $300,000 in the general election. The benefits are subject to a biennial cost of living adjustment. A candidate who accepts more than a specified amount of qualifying or seed money contributions has the excess deducted from his or her public financing benefit. In addition, if a candidate's opponent declines to accept public financing and makes expenditures in a total amount that exceeds by more than five percent the amount permitted for a candidate who accepts public financing, the candidate who accepts public financing receives additional funding equivalent to the excess expenditures made by his or her opponent, but not more than three times the amount of the public financing benefit for the office that the candidate seeks. A candidate also receives additional public financing equivalent to any independent expenditures made against the candidate or in support of his or her opponents if those expenditures exceed 20% of the amount of the public financing benefit for the office that the candidate seeks (but not more than three times the amount of that benefit), as well as additional financing equivalent to the cost of certain mass mailings made by an incumbent opponent using state funds.

Currently, a candidate for the office of justice of the supreme court may qualify to receive a grant from the Wisconsin election campaign fund for use in an election campaign only (no funding is provided for primary campaigns). In order to qualify for a grant, a candidate must qualify to have his or her name appear on the spring election ballot and must have an opponent who qualifies to have his or her name appear on that ballot. The maximum amount of a grant that a candidate may receive is $97,031. This amount is not subject to any cost of living adjustment. In addition, this amount is reduced by the total amount of contributions received by a candidate from special interest committees and this amount may not be fully funded in a particular year if there are not sufficient moneys in the Wisconsin election campaign fund to provide full financing for all qualifying candidates. A candidate must agree to abide by spending and self-contribution limits in order to receive a grant, but this agreement does not apply if the candidate has an opponent who could have qualified for a grant but declines to do so and declines to file an affidavit of voluntary compliance with spending and self-contribution limits.

Currently, individuals and committees making political contributions to candidates for the office of justice of the supreme court are subject to limitations on the amount or value of any contribution or contributions that may be made cumulatively to any candidate in a campaign. The limitations are $10,000 in the case of an individual making a contribution to a candidate and $8,625 in the case of a committee making a contribution to a candidate. This bill replaces these limitations with a contribution limitation of $1,000 applicable to an individual or committee making any contribution or contributions cumulatively to any candidate for the office of justice of the supreme court who is eligible to qualify for a public financing benefit but who declines to accept one, per campaign.

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:

SB181, s. 1 Section 1. 8.35 (4) (b) of the statutes is amended to read:

SB181,3,11 8.35 (4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the Wisconsin election campaign 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). Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the democracy trust fund shall be immediately transferred to any candidate who is appointed to replace such candidate. If there is no candidate appointed, the moneys shall revert to the state.

SB181, s. 2 Section 2. 11.12 (2) of the statutes is amended to read:

SB181,4,2 11.12 (2) Any No registrant, except a candidate who receives a public financing benefit from the democracy trust fund, may accept an anonymous contribution exceeding $10 received by a campaign or committee treasurer or by an individual under s. 11.06 (7) may not be used or expended. The. No candidate who receives a public financing benefit from the democracy trust fund may accept an anonymous contribution exceeding $5. Any anonymous contribution that may not be accepted under this subsection shall be donated to the common school fund or to any charitable organization at the option of the registrant's treasurer.

SB181, s. 3 Section 3. 11.16 (2) and (3) of the statutes are amended to read:

SB181,4,10 11.16 (2) Limitation on cash contributions. Every Except as provided in s. 11.506 (6), every contribution of money exceeding $50 shall be made by negotiable instrument or evidenced by an itemized credit card receipt bearing on the face the name of the remitter. No treasurer may accept a contribution made in violation of this subsection. The treasurer shall promptly return the contribution, or donate it to the common school fund or to a charitable organization in the event that the donor cannot be identified.

SB181,4,21 (3) Form of disbursements. Every Except as authorized under s. 11.511 (1), every disbursement which is made by a registered individual or treasurer from the campaign depository account shall be made by negotiable instrument. Such instrument shall bear on the face the full name of the candidate, committee, individual or group as it appears on the registration statement filed under s. 11.05 and where necessary, such additional words as are sufficient to clearly indicate the political nature of the registrant or account of the registrant. The name of a political party shall include the word "party". The instrument of each committee registered with the board and designated under s. 11.05 (3) (c) as a special interest committee shall bear the identification number assigned under s. 11.21 (12) on the face of the instrument.

SB181, s. 4 Section 4. 11.26 (1) (a) of the statutes is amended to read:

SB181,4,24 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, $10,000.

SB181, s. 5 Section 5. 11.26 (1) (am) of the statutes is created to read:

SB181,5,1 11.26 (1) (am) Candidates for justice, $1,000.

SB181, s. 6 Section 6. 11.26 (2) (a) of the statutes is amended to read:

SB181,5,5 11.26 (2) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, 4% of the value of the disbursement level specified in the schedule under s. 11.31 (1).

SB181, s. 7 Section 7. 11.26 (2) (am) of the statutes is created to read:

SB181,5,7 11.26 (2) (am) Candidates for justice, $1,000.

SB181, s. 8 Section 8. 11.26 (9) (a) of the statutes is amended to read:

SB181,5,14 11.26 (9) (a) No Except as provided in par. (ba), no individual who is a candidate for state or local office may receive and accept more than 65% of the value of the total disbursement level determined under s. 11.31 for the office for which he or she is a candidate during any primary and election campaign combined from all committees subject to a filing requirement, including political party and legislative campaign committees.

SB181, s. 9 Section 9. 11.26 (9) (b) of the statutes is amended to read:

SB181,5,21 11.26 (9) (b) No Except as provided in par. (ba), no individual who is a candidate for state or local office may receive and accept more than 45% of the value of the total disbursement level determined under s. 11.31 for the office for which he or she is a candidate during any primary and election campaign combined from all committees other than political party and legislative campaign committees subject to a filing requirement.

SB181, s. 10 Section 10. 11.26 (9) (ba) of the statutes is created to read:

SB181,5,24 11.26 (9) (ba) Paragraphs (a) and (b) do not apply to a candidate who receives a public financing benefit from the democracy trust fund.

SB181, s. 11 Section 11. 11.26 (13) of the statutes is amended to read:

SB181,6,3 11.26 (13) Except as provided in sub. (9), contributions received from the Wisconsin election campaign fund and public financing benefits received from the democracy trust fund are not subject to limitation by this section.

SB181, s. 12 Section 12. 11.31 (1) (d) of the statutes is amended to read:

SB181,6,6 11.31 (1) (d) Candidates for secretary of state, state treasurer, justice or state superintendent, $215,625.

SB181, s. 13 Section 13. 11.33 (1) (a) (intro.) of the statutes is amended to read:

SB181,6,11 11.33 (1) (a) (intro.) No Except as provided in sub. (4), no person elected to state or local office who becomes a candidate for national, state or local office may use public funds for the cost of materials or distribution for 50 or more pieces of substantially identical material distributed after:

SB181, s. 14 Section 14. 11.33 (4) of the statutes is created to read:

SB181,6,13 11.33 (4) This section does not apply to a candidate for the office of justice.

SB181, s. 15 Section 15. 11.50 (1) (a) 1. of the statutes is amended to read:

SB181,6,22 11.50 (1) (a) 1. With respect to a spring or general election, any individual who is certified under s. 7.08 (2) (a) as a candidate in the spring election for justice or state superintendent, or an individual who receives at least 6% of the vote cast for all candidates on all ballots for any state office, except district attorney, for which the individual is a candidate at the September primary and who is certified under s. 7.08 (2) (a) as a candidate for that office in the general election, or an individual who has been lawfully appointed and certified to replace either such individual on the ballot at the spring or general election; and who has qualified for a grant under sub. (2).

SB181, s. 16 Section 16. 11.50 (3) (b) of the statutes is amended to read:

SB181,7,5 11.50 (3) (b) If a vacancy occurs in the office of state superintendent or justice after August 15 in any year and an election is scheduled to fill the vacancy at the spring election in the following year, the state treasurer shall transfer an amount not exceeding 8% of the moneys transferred to the fund on the preceding August 15 to the superintendency account for the office in which the vacancy occurs, such moneys to be drawn from any account within the accounts created under sub. (4) in the amount or amounts specified by the board.

SB181, s. 17 Section 17. 11.501 to 11.522 of the statutes are created to read:

SB181,7,7 11.501 Definitions. In ss. 11.501 to 11.522:

SB181,7,9 (1) "Allowable contribution" means a qualifying contribution, seed money contribution or personal contribution authorized under ss. 11.502 to 11.522.

SB181,7,10 (2) "Campaign" has the meaning given in s. 11.26 (17).

SB181,7,13 (3) "Election campaign period" means the period beginning on the day after the spring primary election or the day on which a primary election would be held, if required, and ending on the day of the succeeding spring election.

SB181,7,17 (4) "Eligible candidate" means a candidate for the office of justice who qualifies for public financing by collecting the required number of qualifying contributions, making all required reports and disclosures, and being certified by the board as being in compliance with ss. 11.502 to 11.522.

SB181,7,20 (5) "Excess disbursement amount" means the amount of disbursements made by a noncomplying candidate in excess of the public financing benefit available to an eligible candidate for the same office that the noncomplying candidate seeks.

SB181,7,23 (6) "Excess qualifying contribution amount" means the amount of qualifying contributions accepted by a candidate beyond the number or dollar amount of contributions required to qualify a candidate for a public financing benefit.

SB181,8,3 (7) "Exploratory period" means the period that begins after the date of a spring election and ends on the first day of the public financing qualifying period for the next election for justice.

SB181,8,7 (8) "Fair election debit card" means a debit card issued by the board in accordance with s. 11.515 (2) entitling a candidate and agents of the candidate designated by the candidate to draw money from an account maintained by the board to make disbursements authorized by law.

SB181,8,9 (9) "Immediate family", when used with reference to a candidate, includes the candidate's spouse and children.

SB181,8,14 (10) "Independent disbursement" means a disbursement by a person expressly advocating the election or defeat of a clearly identified candidate which is made without cooperation or consultation with a candidate, or any authorized committee or agent of a candidate, and which is not made in concert with, or at the request or suggestion of, any candidate, or any authorized committee or agent of a candidate.

SB181,8,20 (11) "Mass mailing" means a districtwide or statewide mailing of newsletters, pamphlets, brochures or other similar items of more than 100 pieces in which the content of the matter mailed is substantially identical. "Mass mailing" does not include a mailing made in direct response to communications from persons to whom the matter is mailed, a mailing to a federal, state or local government official or a news release to communications media.

SB181,8,23 (12) "Noncomplying candidate" means a candidate for the office of justice who does not apply for a public financing benefit or who otherwise is ineligible or fails to qualify for a public financing benefit under ss. 11.502 to 11.522.

SB181,8,25 (13) "Personal funds" means funds contributed by a candidate or a member of a candidate's immediate family.

SB181,9,4 (14) "Primary election campaign period" means the period beginning 30 days after the last day prescribed by law for filing nomination papers for that office and ending on the day of the spring primary election for that office or the day on which the primary election would be held, if required.

SB181,9,7 (15) "Public financing qualifying period" means the period beginning on the first day of July of any year and ending on the day before the beginning of the primary election campaign period for that office.

SB181,9,11 (16) "Qualifying contribution" means a contribution of $5 made to a candidate made by an elector of the jurisdiction or district in which the candidate seeks office during the public financing qualifying period, which is acknowledged by written receipt identifying the contributor.

SB181,9,17 (17) "Seed money contribution" means a contribution in an amount of not more than $100 made to a candidate by an elector of the jurisdiction or district in which the candidate seeks office during the exploratory period or the public financing qualifying period, or a contribution made to a candidate consisting of personal funds of that candidate in an amount not more than the amount authorized under s. 11.507 during the exploratory period or the public financing qualifying period.

SB181,9,24 11.502 Qualification; certification. (1) Before a candidate for justice in the primary election may be certified as an eligible candidate to receive a public financing benefit for the primary election campaign period, the candidate shall apply to the board for a public financing benefit and file a sworn statement that the candidate has complied and will comply with all requirements of ss. 11.502 to 11.522 throughout the applicable campaign, which includes the primary and election for that office. A candidate shall file the application and statement no later than the beginning of the primary election campaign period for the office that the candidate seeks.

SB181,10,6 (2) A candidate shall be certified by the board as an eligible candidate for receipt of public financing for a primary election if the candidate complies with sub. (1) and receives at least 1,000 qualifying contributions before the close of the public financing qualifying period.

SB181,10,9 (3) The board shall verify a candidate's compliance with the requirements of sub. (2) by such verification and sampling techniques as the board considers appropriate.

SB181,10,10 (4) Each candidate shall:

SB181,10,12 (a) Acknowledge each qualifying contribution by a receipt to the contributor which contains the contributor's name and home address.

SB181,10,16 (b) No later than the 15th or the last day of the month which immediately follows the date of receipt of a qualifying contribution, whichever comes first, file a copy of the receipt under par. (a) with the board, except that during July, August and September a copy need only be filed on the last day of the month.

SB181,10,18 (5) A qualifying contribution may be utilized only for the purpose of making a disbursement authorized by law.

SB181,11,2 11.503 Time of application. (1) Before a candidate may be certified as eligible for receipt of public financing for a spring election, the candidate shall apply to the board and file a sworn statement that the candidate has fulfilled all the requirements of ss. 11.502 to 11.522 during the primary election campaign period and will comply with such requirements during the election campaign period. The application shall be filed no later than the 7th day after the date of the spring primary election or the day on which the primary election would be held if a primary were required.

SB181,11,5 (2) The board shall certify a candidate as an eligible candidate for receipt of public financing for a spring election if the candidate complies with sub. (1) and the candidate was an eligible candidate during the primary election campaign period.

SB181,11,13 11.505 Agreement by candidate. An eligible candidate who accepts a public financing benefit under ss. 11.502 to 11.522 during the primary election campaign period shall agree to comply with all requirements of ss. 11.502 to 11.522 throughout the election campaign period during the same campaign as a precondition to receipt of public financing. An eligible candidate who accepts a public financing benefit during a primary election campaign period may not elect to accept private contributions in violation of ss. 11.502 to 11.522 during the corresponding election campaign period.

SB181,11,17 11.506 Requirements imposed upon candidates. (1) An eligible candidate may not accept private contributions other than seed money contributions and qualifying contributions that the candidate accepts during the exploratory period and the public financing qualifying period.

SB181,11,25 (2) In addition to reports required to be filed under ss. 11.12 (5) and 11.20, a candidate who receives a public financing benefit shall furnish complete financial records, including records of seed money contributions, qualifying contributions and disbursements, to the board on the 15th or the last day of the month that immediately follows the receipt of the contribution or the making of the disbursement, whichever comes first, except that during July, August and September records need only be furnished on the last day of the month. Each such candidate shall cooperate with any audit or examination by the secretary of state.

SB181,12,9 (3) In addition to adhering to requirements imposed under ss. 11.06 (5) and 11.12 (3), a candidate who receives a public financing benefit shall maintain records of all contributions received by the candidate of more than $5 but less than $50, including seed money contributions and qualifying contributions, which shall contain the full name of the contributor and the contributor's full home address. In addition, if a contributor's aggregate contributions to any candidate exceed $50 for any campaign, the candidate shall also maintain a record of the contributor's principal occupation and the name and business address of the contributor's place of employment.

SB181,12,11 (4) The failure to record or provide the information specified in sub. (3) disqualifies a contribution from counting as a qualifying contribution.

SB181,12,14 (5) No eligible candidate and no person acting on a candidate's behalf may deposit any contribution that is not recorded in accordance with sub. (3) in a candidate's campaign depository account.

SB181,12,18 (6) No eligible candidate may accept more than $25 in cash from any contributor and no such candidate may accept cash from all sources in a total amount greater than one-tenth of 1% of the public financing benefit for the office that the candidate seeks or $500, whichever is greater.

SB181,12,21 11.507 Personal funds of candidates. (1) The personal funds of a candidate contributed as seed money contributions may not exceed an aggregate amount of $5,000.

SB181,12,23 (2) No eligible candidate may make any disbursement derived from personal funds after the close of the public financing qualifying period.

SB181,13,5 11.508 Seed money contributions. (1) An eligible candidate may accept seed money contributions from any individual or committee prior to the end of the public financing qualifying period, provided the total contributions from one contributor, except personal funds and qualifying contributions otherwise permitted under ss. 11.502 to 11.522, do not exceed $100, and the aggregate contributions, including personal funds, but not including qualifying contributions, do not exceed $5,000.

SB181,13,8 (2) An eligible candidate may make disbursements derived from seed money contributions only during the exploratory period and the public financing qualifying period.

SB181,13,20 11.509 Excess contributions. If an eligible candidate receives excess seed money contributions or qualifying contributions on an aggregate basis, the candidate may retain the contributions and make disbursements derived from the contributions, in an amount not exceeding $15,000. An amount equivalent to the excess contributions shall be deducted by the board from the candidate's public financing benefit. A candidate shall return to the board all seed money and qualifying contributions that exceed the limits prescribed in this section within 48 hours after the end of the exploratory period. A candidate shall also return to the board any seed money and qualifying contributions that have not been encumbered or expended by the beginning of the primary election campaign period. The board shall deposit all contributions returned under this section in the democracy trust fund.

SB181,14,3 11.51 Certification by candidate; line of credit. (1) To apply for a public financing benefit, a candidate shall certify to the board that the candidate has complied and will comply, throughout the applicable campaign, with all requirements of ss. 11.502 to 11.522 and that all disclosures required as of the time of application have been made, and shall present evidence of the requisite number of qualifying contributions received by the candidate. The candidate's request for certification shall be signed by the candidate and the candidate's campaign treasurer.

SB181,14,9 (2) The board shall distribute to each eligible candidate at the spring primary election a line of credit for public financing promptly after the candidate demonstrates his or her eligibility and, in any event, not later than 5 days after the end of the public financing qualifying period; however, no candidate may utilize a line of credit under this subsection until the beginning of the primary election campaign period.

SB181,14,16 (3) The board shall distribute to each eligible candidate for justice at a spring election a line of credit for public financing not later than 48 hours after the date of the spring primary election for the office of justice, or the date that the primary election would be held if a primary were required. However, no candidate for a particular office shall receive a line of credit until all candidates for the same office who apply and qualify for a public financing benefit have been certified as eligible candidates.

SB181,14,20 (4) If any candidate who receives a public financing benefit violates the requirements of ss. 11.502 to 11.522, the board shall require the candidate to repay all public funds received by the candidate to the board. The board shall deposit all repayments received under this subsection in the democracy trust fund.

SB181,15,4 11.511 Public financing benefits. (1) The board shall provide to each eligible candidate who qualifies to receive a public financing benefit for the primary or election campaign period separate lines of credit for the primary and election campaign periods in the amounts specified in this section, subject to any required adjustment under s. 11.509, 11.512 (2), 11.513 (2) or 11.519 (2). An eligible candidate may use this credit to finance any lawful disbursements during the primary and election campaign periods to further the election of the candidate in that primary or election. An eligible candidate may not use this credit to repay any loan, or in violation of ss. 11.502 to 11.522 or any other applicable law.

SB181,15,6 (2) The public financing benefit for a primary election campaign period is $100,000.

SB181,15,7 (3) The public financing benefit for an election campaign period is $300,000.