SB190: Bill Text

LRB-3171/1

JTK&JK:cmh:ch&jf

1999 - 2000 LEGISLATURE

1999 Senate BILL 190

June 8, 1999 - Introduced by Committee on Agriculture, Environmental Resources and Campaign Finance Reform. Referred to Committee on Agriculture, Environmental Resources and Campaign Finance Reform.

SB190,2,10 An Act to repeal 11.01 (5m), 11.01 (12s), 11.05 (3) (o), 11.05 (9) (b), 11.06 (11), 11.24 (1m), 11.26 (9) (c), 11.26 (12m), 11.265, 11.31 (1) (b), 11.31 (2m), 11.31 (3), 11.31 (3m), 11.31 (4), 11.50 (2) (i), 11.50 (3), 11.50 (6), 20.855 (4) (b) and 71.10 (3); to renumber 11.05 (9) (a); to renumber and amend 11.12 (6), 11.50 (2) (b) 5. and 11.50 (9); to amend 5.02 (13), 5.02 (18), 7.08 (2) (c) and (cm), 8.35 (4) (b), 10.02 (3) (b) 2m., 11.05 (3) (c), 11.05 (3) (n), 11.06 (2), 11.06 (7m) (a), 11.06 (7m) (c), 11.09 (3), 11.12 (5), 11.16 (5), 11.20 (2m), 11.20 (3) (d), 11.20 (3) (g), 11.20 (8) (intro.), 11.20 (12), 11.21 (15), 11.26 (1) (intro.), 11.26 (1) (a), 11.26 (1) (b), 11.26 (1) (c), 11.26 (2) (intro.), 11.26 (2) (a), 11.26 (4), 11.26 (8), 11.26 (9) (a), 11.26 (9) (b), 11.26 (9) (b), 11.26 (10), 11.26 (13), 11.26 (17) (a), 11.31 (1) (a), 11.31 (1) (c), 11.31 (1) (d), 11.31 (1) (e) and (f), 11.31 (2), 11.38 (1) (a) 3., 11.50 (title), 11.50 (1) (b), 11.50 (2) (a), 11.50 (2) (b) (intro.), 11.50 (2) (b) 1. to 3., 11.50 (2) (b) 4., 11.50 (2) (g), 11.50 (5), 11.50 (9) (title), 11.50 (11) (e), 11.61 (1) (a), 11.61 (1) (a), 11.61 (1) (b), 11.61 (1) (b), 11.61 (1) (c), 14.58 (20), 20.510 (1) (q), 25.17 (1) (ys), 25.42 and chapter 77 (title); to repeal and recreate 11.50 (4); and to create 11.05 (14), 11.12 (6) (c) and (d), 11.12 (7), 11.12 (8), 11.20 (2e), 11.20 (8) (am), 11.20 (8) (an), 11.24 (1s), 11.24 (1t), 11.24 (1w), 11.26 (1m), 11.26 (10a), 11.31 (1) (cm), 11.31 (3p), 11.31 (9), 11.50 (2) (b) 3m., 11.50 (2) (b) 3s., 11.50 (2) (b) 5. a. to f., 11.50 (2) (bm), 11.50 (9) (a) 1. to 6., 11.50 (9) (b), 11.50 (9) (ba), 11.50 (9a), 11.60 (3s) and (3t), 11.61 (1) (d), 20.855 (4) (ba), 20.855 (4) (bb) and subchapter XIII of chapter 77 [precedes 77.997] of the statutes; relating to: campaign financing, imposition of a lobbying expenditure tax, providing exemptions from emergency rule procedures, granting rule-making authority, making appropriations and providing penalties.

Analysis by the Legislative Reference Bureau

This bill makes numerous changes in the campaign finance law and imposes a tax on lobbying expenditures. Significant changes include:

Filing of campaign finance reports

Currently, a committee making contributions or a candidate or other individual or committee accepting contributions, making disbursements (expenditures) or incurring obligations in support of or opposition to a candidate is generally required to file a report no later than the eighth day before a primary or election at which the candidate seeks nomination or election to office. The report must disclose contributions made or accepted, disbursements made and obligations incurred through the 14th day prior to the primary or election.

Currently, if a candidate for state office receives one or more contributions from a single contributor aggregating $500 or more during the 14-day period preceding an election, the candidate must report to the elections board the information currently required to be disclosed pertaining to contributions received by the candidate no later than 24 hours following receipt of any such contribution or contributions.

This bill requires each candidate at the general or a special election for the office of governor, lieutenant governor, attorney general, secretary of state, justice of the supreme court, state senator or representative to the assembly who does not accept a public grant (see below) and who intends to make any disbursement or who incurs or intends to incur any obligation to make a disbursement after the candidate has made disbursements in his or her campaign exceeding the amount of the disbursement limitation for the office that the candidate seeks, to report to the elections board, no later than 21 days prior to the activity intended to be funded by the disbursement or obligation, the information that is currently required to be reported pertaining to disbursements made and obligations incurred by candidates.

The bill similarly requires each committee that intends to make any disbursement or that incurs or intends to incur any obligation to make a disbursement for the purpose of advocating the election or defeat of a candidate for a major state office at the general election or a special election independently of any candidate who is supported or whose opponent is opposed to report to the elections board, no later than 21 days prior to the activity intended to be funded by the disbursement or obligation, specifying the name of each candidate who is supported or whose opponent is opposed and the total amount of disbursements to be made and obligations to be incurred for that purpose.

In addition, the bill provides that if a candidate for a major state office at the general or a special election does not enter into an agreement to accept a public grant in return for abiding by disbursement limitations and contribution restrictions, the candidate must report to the elections board all information currently required to be disclosed pertaining to any contributions received by the candidate no later than 24 hours following receipt of any contribution or contributions after that candidate receives total contributions equal to more than the following amounts during his or her campaign:

1. For candidates for the offices of governor and lieutenant governor jointly, $500,000 from all committees or $1,500,000 from all contributors.

2. For a candidate for the office of attorney general, $100,000 from all committees or $300,000 from all contributors.

3. For a candidate for the office of secretary of state, state treasurer or state superintendent of public instruction, $50,000 from all committees or $150,000 from all contributors.

4. For a candidate for the office of justice, $225,000 from all contributors.

5. For a candidate for the office of state senator, $25,000 from all committees or $75,000 from all contributors.

6. For a candidate for the office of representative to the assembly, $12,500 from all committees or $37,500 from all contributors.

Under the bill, these 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.

The bill also requires each candidate at the general election, and each committee or individual making disbursements or incurring obligations in support of or in opposition to a candidate at the general or a special election, to file an additional report on the tenth day after the election.

Mass media activities

Currently, individuals who accept contributions, organizations that make or accept contributions, or individuals who or organizations that incur obligations or make disbursements for the purpose of influencing an election for state or local office are generally required to register with the appropriate filing officer and to file financial reports with that officer, regardless of whether they act in conjunction with or independently of any candidate who is supported or opposed. Currently, when a person is alleged to have violated registration and reporting requirements, the state has the burden of proving that the violation occurred.

This bill provides that, whenever any person publishes, disseminates or broadcasts any communication that includes a reference to a candidate for an office to be filled at an 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 for 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 establishes, by a preponderance of the evidence, that the communication was not made for that purpose.

Disbursement limitations

Under current law, disbursement (expenditure) levels are specified for candidates for various state and local offices. These levels become a binding limitation upon any candidate for state office who accepts a state grant from the Wisconsin election campaign fund or who agrees to be bound by the limitation, unless the candidate is opposed by a major opponent who could have qualified for a grant but who declines to accept one and declines to file an affidavit of voluntary compliance with disbursement and contribution limitations. Under current law, the disbursement limitations apply to a candidate's entire primary and election campaign combined. Additionally, the disbursement levels for candidates for the offices of state senator and representative to the assembly are subdivided between the primary and election campaign periods in such a way that only about 60% of the total applicable disbursement level for either office may be allocated by a candidate to either the primary or the election campaign period.

This bill:

1. Eliminates disbursement levels and limitations applicable to candidates for state office, except the offices of court of appeals judge, circuit judge and district attorney, on or before the date of the primary election for those offices.

2. Revises the current disbursement levels applicable to candidates for the offices shown in the following chart: - See PDF for table

3. Creates a biennial cost-of-living adjustment that causes the statutory disbursement levels to be adjusted biennially, beginning in 2002, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

4. Deletes current law that permits a candidate who does not accept a grant to continue to bind an opponent to disbursement and contribution limitations by filing an affidavit of voluntary compliance.

5. Increases the disbursement limitation of any candidate who accepts a public grant by 1) an amount equal to the amount of any independent disbursements that are made to oppose that candidate or to support that candidate's opponent; 2) the total amount of obligations incurred or proposed to be incurred and disbursements proposed to be made that have not previously been reported as obligations by any opposing candidate who does not accept a public grant exceeding the amount of the disbursement limitation for the office that the candidate seeks; and 3) the total amount of contributions accepted by opposing candidates above the level for which 24-hour reports are required.

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.

This 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.

Treatment of conduits

Currently, if an individual or organization receives a political contribution consisting of money and transfers the contribution to another individual or organization without exercising discretion as to the amount to be transferred and the individual to whom or the organization to which the transfer is made, the contribution is considered to be made by the original contributor for purposes of reporting by the ultimate recipient. The contribution is also treated as an individual contribution for purposes of determining contribution limitations and qualifying contributions for public grants. The individual or organization making the transfer is called a "conduit" under the law. In most cases, a conduit is required to register and file campaign finance reports unless the conduit does not transfer any contributions to candidates or to personal campaign, legislative campaign or political party committees.

This bill treats a contribution of money transferred by a conduit as a contribution from the conduit rather than from the individual contributor for purposes of reporting by the ultimate recipient, and for purposes of determining adherence to contribution limitations and qualifying contributions for public grants. Under the bill, conduit contributions made by a committee are included within the aggregate limitation upon contributions that may be received from committees (see below). These conduit contributions may not be used to qualify for a public grant.

Contribution limitations

Current law specifies limitations on the maximum amount of contributions that 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 that 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.

This bill changes contribution limitations applicable to individuals making contributions to candidates for a major state office (governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent of public instruction, justice of the supreme court, state senator or representative to the assembly) per campaign, as follows: - See PDF for table

The bill also imposes an aggregate contribution limitation on the total amount or value of contributions that a candidate who accepts a grant may accept from all individuals, including contributions by an individual to his or her own campaign, during the entire campaign of the candidate, as follows:

1. For candidates for the offices of governor and lieutenant governor jointly, $500,000.

2. For a candidate for the office of attorney general, $150,000.

3. For a candidate for the office of justice of the supreme court, $75,000.

4. For a candidate for the office of secretary of state, state treasurer or state superintendent of public instruction, $50,000.

5. For a candidate for the office of state senator, $25,000.

6. For a candidate for the office of representative to the assembly, $12,500.

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 from a special interest ("political action") committee during the period beginning on the 30th day preceding any election other than a primary election and ending on the date of that election. The bill also prohibits every such candidate 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. 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 fund to receive contributions from individuals who are residents of this state in amounts of $100 or less in the following total amounts:

1. For candidates for the offices of governor and lieutenant governor jointly, $80,000.

2. For a candidate for the office of attorney general, $24,000.

3. For a candidate for the office of justice of the supreme court, $12,000.

4. For a candidate for the office of secretary of state, state treasurer or state superintendent of public instruction, $8,000.

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

6. For a candidate for the office of representative to the assembly, $2,000.

In addition, the bill requires a candidate for the office of justice of the supreme court who seeks a grant to agree not to accept any contributions from special interest ("political action") committees or political party 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, $1,500,000.

2. For a candidate for the office of attorney general, $150,000.

3. For a candidate for the office of justice of the supreme court, $225,000.

4. For a candidate for the office of secretary of state, state treasurer or superintendent of public instruction, $150,000.

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

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

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 independent disbursements that are made to oppose that candidate or to support that candidate's opponent; 2) the total amount of obligations incurred or proposed to be incurred and disbursements proposed to be made that have not previously been reported as obligations by an opposing candidate who does not accept a grant exceeding the amount of the disbursement limitation for the office that the candidate seeks; and 3) the total amount of contributions accepted by opposing candidates above the level for which 24-hour reports are required.