With certain exceptions, this bill imposes registration and reporting
requirements, in addition, upon any individual who or organization that, within 60
days of an election and by means of a newspaper, periodical, commercial billboard,
radio station, television station, mass mailing, or telephone bank operator, makes a
communication which includes the name or likeness of a candidate at that election,
an office to be filled at that election, or a political party. The bill, however, does not
require registration and reporting if the communication is made by a corporation,
cooperative, or nonpolitical voluntary association and is limited to the corporation's,
cooperative's, or association's members, shareholders, or subscribers.
5. Timeliness in filing reports
Currently, where a requirement is imposed under the campaign finance law for
filing of a report by a specified date, the requirement may be satisfied by depositing
the report with the U.S. postal service no later than the date provided by law for
receipt of the report.
This bill permits satisfaction of the filing requirement only by delivering a
report to the appropriate filing officer or agency on or before the date provided by law
for receipt of the report or by depositing the report with the U.S. postal service no
later than the third day before that date.
Disbursement limitations and independent disbursements
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 declines to accept one. A candidate for state office who accepts a grant from the
Wisconsin election campaign fund and who agrees to be bound by the disbursement
limit applicable to the office which the candidate seeks may receive a grant equal to
45% of that disbursement limit, less certain committee contributions accepted by the
candidate, if there are sufficient moneys in the fund to finance the full amount of
grants for which candidates qualify.
Current law also imposes registration and financial reporting requirements on
committees and individuals making disbursements independently of a candidate in
support of or in opposition to a candidate for a state or local office. One requirement
is the obligation of the committee or individual to file reports with the appropriate
filing officer within 24 hours of making such a disbursement, if the disbursement is
made less than 15 days before a primary or election and if the cumulative amount
of such disbursements exceeds $20.
This bill:
1. Revises the current disbursement levels applicable to candidates for the
offices shown in the following chart:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
2. Provides that the total disbursement limitation for a candidate whose name
appears on the ballot at a primary election and who receives less than twice as many
votes at that election as another candidate for the same office is 120% of the amount
provided for the candidate receiving the greatest number of votes for that office.
3. Creates a biennial cost-of-living adjustment that causes the statutory
disbursement levels to be adjusted biennially, beginning in 2004, in accordance with
a formula tied to the "consumer price index" determined by the U.S. department of
labor.
4. Replaces the provision requiring reports of cumulative independent
disbursements exceeding $20 made later than 15 days prior to a primary or election
with a provision that requires cumulative independent disbursements
or obligations
exceeding $20 during that period to be so reported.
5. Increases the disbursement limitation of any candidate who accepts a public
grant by: a) an amount equal to any independent disbursements that are made to
oppose that candidate, or to support that candidate's opponent, exceeding 10% of the
disbursement limitation for the office that the candidate seeks; and b) the total
amount of disbursements exceeding the amount of the disbursement limitation for
that office made by any opposing candidate who does not accept a public grant.
6. Repeals the procedure by which a candidate who would not otherwise be
subject to statutory disbursement limitations may voluntarily agree to comply with
these limitations.
7. Repeals the exemption from disbursement limitations that currently applies
to any candidate who accepts a grant from the Wisconsin election campaign fund and
who is opposed by a major opponent who could have qualified for a grant but declines
to accept one. Under the bill, the candidate accepting the grant remains bound by
the applicable disbursement limitations.
Contribution limitations
Current law limits the amount of contributions which may be given to and
accepted by a candidate for state or local office. Currently, individuals are subject
to limitations on the amount of contributions made cumulatively to a particular
candidate and on the aggregate total of contributions made to all candidates. An
individual making a contribution to a candidate for statewide office may contribute
up to $10,000, an individual making a contribution to a candidate for the office of
state senator may contribute up to $1,000, and an individual making a contribution
to a candidate for the office of representative to the assembly may contribute up to
$500. However, an individual may not contribute more than $10,000 annually to all
candidates combined.
Under this bill, the limitation on individual contributions to candidates for
statewide offices is $1,000, the limitation on individual contributions to candidates
for the office of state senator is $500, and the limitation on individual contributions
to candidates for the office of representative to the assembly is $250. The annual
limitation on individual contributions to all candidates under the bill is $5,000.
Under current law, committees other than political party committees and
legislative campaign committees are subject to limitations on the amount of
contributions made cumulatively to a particular candidate. A committee may
contribute up to $43,238 to a candidate for statewide office. Current law also limits
the cumulative amount of contributions that a committee may make annually to a
particular political party, limits the cumulative amount of contributions that a
political party may accept annually from a particular committee, and limits the
aggregate total of contributions that a political party may accept during any
biennium from all committees. Currently, a committee may annually contribute up
to $6,000 to a particular political party, a political party may annually accept up to
$6,000 from a particular committee, and a political party may accept up to $150,000
in contributions from all committees during any biennium.
Under this bill, the limitation on committee contributions to candidates for
statewide office is increased to $45,000, the limitation on committee contributions
to a particular political party, and on the annual amount that a political party may
accept from a particular committee, is increased to $12,000, and the aggregate
limitation on contributions that a political party may accept during a biennium from
all committees is increased to $300,000.
Currently, no candidate who accepts a grant from the Wisconsin election
campaign fund or who files an affidavit affirming his or her voluntary compliance
with statutory disbursement limitations may make contributions to his or her own
campaign exceeding 200% of the limitations applicable to other individuals making
contributions to his or her campaign. This bill provides, instead, that no candidate
who accepts a grant from the Wisconsin election campaign fund may make
contributions to his or her own campaign exceeding $1,000.
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
causing them to be treated in the same manner as other special interest committees
for the purpose of contribution limitations.
Other contribution restrictions
This bill creates the following new prohibitions on contributions:
1. It prohibits contributions to incumbents who are seeking reelection to a
partisan state office from the first Monday in January of each odd-numbered year
through the enactment of the biennial budget act and, thereafter, during any
floorperiod, including any special or extraordinary session floorperiod. The
prohibition does not apply to contributions made to an incumbent who is subject to
a recall election from the date on which the petition for a recall election is filed until
the date of the recall election.
2. It prohibits any committee from making a contribution to any special interest
committee. The prohibition does not apply to a committee that is affiliated with a
labor organization that transfers a contribution to another committee that is
affiliated with the same labor organization.
3. It prohibits any personal campaign committee or support committee
authorized by a prospective candidate from making a contribution to any other such
committee.
4. It prohibits any lobbyist from making a contribution to a partisan elective
state official or candidate for a partisan elective state office or to such an official's or
candidate's personal campaign committee, except that the bill permits a lobbyist to
make a campaign contribution to a candidate for elective state office, or to the
personal campaign committee of such a candidate, if the candidate seeks office in the
jurisdiction or district where the lobbyist resides. Currently, a lobbyist may make
a contribution to any partisan elective state official or candidate for a partisan
elective state office in the year that an official or candidate seeks election between
June 1 and the day of the general election.
5. It prohibits a member of the legislature, or a member's personal campaign
committee, from soliciting a lobbyist or principal to arrange for another person to
make a campaign contribution to that member or committee. Currently, an elective
state official is prohibited from soliciting a lobbyist or principal to make a prohibited
campaign contribution.
6. It prohibits any registrant from accepting any contribution made by a
committee or group that does not maintain an office or street address within this
state at the time that the contribution is made, unless that committee or group is
registered with the federal election commission under federal law. Federal law
generally requires registration and reporting by organizations only when they
receive contributions or make expenditures with respect to elections for federal
office.
Currently, if a registrant receives a contribution, the registrant must deposit
the contribution in its campaign depository account no later than the end of the fifth
business day commencing after receipt, unless the registrant returns the
contribution before that time. A registrant must report the occupation and principal
place of employment of any individual who makes any contribution or contributions
to a registrant exceeding $100 in amount or value cumulatively within a calendar
year. This bill provides that whenever a registrant receives a contribution in the
form of money the registrant must obtain this information from a contributor, if
required, before depositing the contributor's contribution in its campaign depository
account. Under the bill, if the registrant does not obtain the required information
within the period prescribed for making deposits, the registrant must return the
contribution.
Contributions through 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 compliance with 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
contribution limitations and qualifying contributions for public grants. Thus, under
this bill, a contribution of money that is transferred by a conduit that is a committee
is included within the overall limitation on contributions that a candidate may derive
from public grants and from contributions received from committees. In addition,
these contributions may not be used to qualify for a public grant.
Disposition of residual or excess funds
Under current law, residual funds remaining when a person who is required to
register under the campaign financing law disbands or ceases incurring obligations,
making disbursements, or accepting contributions or excess funds received by a
registrant that may not be legally expended may generally be used for any lawful
political purpose, returned to the original contributors, or donated to a charitable
organization or the common school fund.
This bill allows residual or excess funds to be transferred to the Wisconsin
election campaign fund. The bill also requires residual contributions received by a
personal campaign committee formed to support the campaign of a partisan state
officeholder who seeks election to another office and, subsequently, decides not to run
for that other office, which exceed 10% of the statutory disbursement level for the
office that the candidate holds, to be either returned to the donors or transferred to
the Wisconsin election campaign fund. In addition, the bill limits the amount of
contributions which remain unencumbered after December 31 of an even-numbered
year that a candidate for partisan state office or such a candidate's personal
campaign committee may carry over from a general election campaign to another
campaign to not more than10% of the candidate's disbursement level. Under the bill,
contributions in excess of that amount must be transferred to the Wisconsin election
campaign fund.
Wisconsin election campaign fund
Sources and uses of funds
Under current law, the Wisconsin election campaign fund is financed through
an individual income tax "checkoff." Every individual filing a state income tax return
who has a tax liability or is entitled to a tax refund may direct that $1 of general
purpose revenue be transferred to the fund. Individuals filing a joint return may
separately choose whether to direct that the $1 transfer be made. All moneys
transferred to the fund are placed in accounts for specified state offices, and
candidates for those offices may qualify for grants from the fund to be used for
specified campaign expenses. No moneys in the fund may be used for any other
purpose.
This bill:
1. Increases the amount of the individual income tax checkoff for the Wisconsin
election campaign fund from $1 to $5, effective for tax returns filed for taxable years
beginning on or after January 1 following the day on which the bill becomes law.
Under the bill, individuals filing a joint return may separately choose whether to
make the $5 checkoff. The bill also permits individuals to determine whether to
designate their checkoffs for a "general account," which is distributed to all
candidates who qualify for a grant, or for the account of an eligible political party,
which is distributed to all candidates representing that party who qualify for a grant.
However, if there are insufficient moneys in these accounts to permit any candidate
who qualifies for a grant from receiving the full amount for which the candidate
qualifies, the bill provides for the deficiency to be drawn from state general purpose
revenue.
2. Authorizes the state elections board to set aside an amount not exceeding 5%
of the moneys transferred to the Wisconsin election campaign fund in each year,
before distributions are made to candidate office accounts, to provide public
information concerning the purpose and effect of the fund and the income tax
checkoff for the fund. As part of the public information program, the board must
prepare an easily understood description of the purpose and effect of the fund and
the tax checkoff. The department of revenue is required to include and highlight the
description in its income tax preparation instructions related to the tax checkoff.
3. Provides that, if a grant is used to purchase an advertisement from a
broadcast or communications medium, the advertisement may not include any voice
other than the voice of the candidate to whom the grant is provided.
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 6% of the total votes cast in the primary and
have 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 6% of the vote; or b) receive at least 6% of the votes cast at the special
election.
2. The candidate must have an opponent in the election.
3. The candidate must receive, during a specified time period, a specified
amount through contributions from individuals of $100 or less. For a candidate for
the office of governor, lieutenant governor, secretary of state, state treasurer,
attorney general, justice of the supreme court, or superintendent of public
instruction, the amount is 5% of the authorized disbursement level for the office
which the candidate seeks. For a candidate for the office of state senator or
representative to the assembly, the amount is 10% of the authorized disbursement
level for the office which the candidate seeks.
Under current law, a candidate for any office who accepts a grant must comply
with statutorily prescribed contribution and disbursement limitations, unless at
least one of the candidate's opponents who received at least 6% of the votes cast for
all candidates for that office at a partisan primary, if a primary was held, does not
accept a grant and does not voluntarily agree to comply with the contribution and
disbursement limitations for that office. The maximum grant that a candidate may
receive is that amount which, when added to all other contributions accepted from
sources other than individuals, political party committees, and legislative campaign
committees, is equal to 45% of the authorized disbursement level for the office which
the candidate seeks.
Currently, the elections board must notify the state treasurer that a candidate
has qualified to receive a grant as soon as possible after the board is able to determine
that the candidate has qualified to receive the grant. The state treasurer then has
three business days to transmit the grant to the candidate.
This bill:
1. Decreases the percentage of the total votes cast that a candidate for a
partisan state office must receive in order to be eligible to receive a grant from the
Wisconsin election campaign fund to 2% of the total votes cast in the primary
election.
2. Provides that a candidate for the office of state senator or representative to
the assembly must receive contributions 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 of $100 or less from individuals used by
a candidate for any state office to determine eligibility for a grant from the Wisconsin
election campaign fund must be made by individuals who reside in this state and, in
the case of a candidate for legislative office, by individuals at least 50% of whom
reside in a county having territory within the district in which the candidate seeks
office.
3. Provides that a candidate who applies for a grant may not accept any
contribution from any committee other than a political party committee. If the
candidate has accepted any contribution from a committee other than a political
party committee during the campaign for the office that the candidate is currently
seeking, the candidate must return the contribution to the contributor or donate the
contribution to a charitable organization or to the Wisconsin election campaign fund
or the common school fund before filing an application for a grant. The candidate
may, however, later accept a contribution from a committee other than a political
party committee if the candidate is determined by the elections board to be ineligible
to receive a grant, after the date of that determination.
4. Increases the maximum grant that a candidate for the office of justice of the
supreme court or superintendent of public instruction may receive to 75% of the
authorized disbursement level for the office that the candidate seeks and provides
that the maximum grant that a candidate for any other state office may receive is
45% of the authorized disbursement level for the office that the candidate seeks,
unless the candidate qualifies to receive a supplemental grant (see below).
5. Provides that a candidate who accepts a grant shall receive a supplemental
grant in an amount equal to: a) the amount of any independent disbursements that
are made to oppose that candidate, or to support that candidate's opponent,
exceeding 10% of the disbursement limitation for the office that the candidate seeks;
and b) the total amount of disbursements exceeding the amount of the disbursement
limitation for that office made by an opposing candidate who does not accept a grant.
6. Requires the elections board and state treasurer to electronically transmit
supplemental grants to qualifying candidates who so request within 24 hours after
the candidates qualify to receive the supplemental grants.
Initial applicability
All campaign finance changes under the bill apply to elections held on or after
the day on which the bill becomes law.
Tax credits and deductions
The bill eliminates a current state income and franchise tax deduction for
certain business expenses that lobbyists incur, effective for tax returns filed for
taxable years beginning on or after January 1, 2003. Currently, this deduction may
be claimed for expenses incurred in direct connection with: 1) 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 2)
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 also creates an income tax credit for individuals who make one or more
contributions to a state or county committee or a political party or a candidate for
state office who files an application for a grant from the Wisconsin election campaign
fund in which the candidate agrees to be bound by disbursement and
self-contribution limitations, if the application is accepted by the elections board.
In order to be eligible for a credit, a contribution to a political party committee must
be made to a committee of a party that qualifies for a separate ballot or column or
row on the ballot, and a contribution to a candidate must be made to a candidate for
office in the same jurisdiction or district in which the claimant resides. The
maximum credit that may be claimed for any contribution is $50 within any taxable
year; the maximum credit that may be claimed for all contributions is $100 within
any taxable year. The credit is nonrefundable; no refund will be paid if the amount
of the credit for which the claimant is otherwise eligible exceeds his or her tax
liability.
Elections board
Under current law, the governor appoints all members of the elections board as
follows: one member is selected by the governor and one member each is designated
by the chief justice of the supreme court, the speaker of the assembly, the senate
majority leader, the minority leader in each house of the legislature, and the chief
officer of each political party qualifying for a separate ballot at the September
primary whose candidate for governor at the most recent gubernatorial election
received at least 10% of the vote (currently, the Republican and the Democratic
parties).
This bill increases the potential number of political parties that may designate
an individual to the governor for appointment to the board. Under the bill, any
political party that qualified for a separate ballot at the preceding September
primary may designate an individual to the governor for appointment to the board.
This bill also increases the authorized FTE positions for the board by 1.0 GPR
campaign finance investigator position and 1.0 GPR auditor position.
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
relating to reporting of mass media activities, reporting of disbursements by
committees acting independently of candidates and by candidates who decline to
accept public grants, and provision of supplemental grants to candidates who are
opposed or whose opponents are supported by those disbursements is found by a
court to be invalid, then all of those parts of the act are void.
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:
AB155, s. 1
1Section
1. 5.02 (13) of the statutes is amended to read:
AB155,14,72
5.02
(13) "Political party" or "party" means a state committee registered under
3s. 11.05
and organized exclusively for political purposes under whose name
4candidates appear on a ballot at any election, and all county, congressional,
5legislative, local and other affiliated committees authorized to operate under the
6same name. For purposes of ch. 11, the term does not include
a legislative campaign
7committee or a committee filing an oath under s. 11.06 (7).
AB155, s. 2
8Section
2. 7.08 (2) (c) and (cm) of the statutes are amended to read:
AB155,14,199
7.08
(2) (c) As soon as possible after the canvass of the spring and September
10primary votes, but no later than the first Tuesday in March and the 4th Tuesday in
11September, transmit to the state treasurer a certified list of all eligible candidates
12for state office who have filed applications under s. 11.50 (2) and
whom who the board
13determines
to be are eligible to receive payments from the Wisconsin election
14campaign fund. The
board shall also electronically transmit a similar list of
15candidates who the board determines are eligible to receive a grant under s. 11.50
16(9) (b) or (ba) within 24 hours after any candidate qualifies to receive such a grant.
17Each list shall contain each candidate's name, the mailing address indicated upon
18the candidate's registration form, the office for which the individual is a candidate
19and the party or principle which he or she represents, if any.
AB155,15,1120
(cm) As soon as possible after the canvass of a special primary, or the date that
21the primary would be held, if required, transmit to the state treasurer a certified list
1of all eligible candidates for state office who have filed applications under s. 11.50 (2)
2and
whom who the board determines
to be are eligible to receive a grant from the
3Wisconsin election campaign fund prior to the election. The board shall also transmit
4a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and
5whom who the board determines
to be are eligible to receive a grant under s. 11.50
6(1) (a) 2. after the special election. The
board shall electronically transmit a similar
7list of candidates who the board determines are eligible to receive a grant under s.
811.50 (9) (b) or (ba) within 24 hours after any candidate qualifies to receive such a
9grant. Each list shall contain each candidate's name, the mailing address indicated
10upon the candidate's registration form, the office for which the individual is a
11candidate and the party or principle which he or she represents, if any.
AB155, s. 3
12Section
3. 7.08 (2) (cs) of the statutes is created to read:
AB155,15,1513
7.08
(2) (cs) In each even-numbered year, certify to the state treasurer for the
14period beginning with the month following certification and ending with the month
15in which the next certification is made by the board:
AB155,15,1916
1. No later than July 1, the name of each political party that qualifies under
17s. 11.50 (1) (am) 1. as an eligible political party as of the preceding June 1 and whose
18state chairperson has filed a request to establish an account for the party under s.
1911.50 (2s) (a).
AB155,15,2320
2. No later than December 15, the name of each political party that qualifies
21under s. 11.50 (1) (am) 2. as an eligible political party as of the date of the preceding
22general election and whose state chairperson has filed a written request to establish
23an account for the party under s. 11.50 (2s) (a).
AB155, s. 4
24Section
4. 7.70 (3) (e) 1. of the statutes is amended to read:
AB155,16,6
17.70
(3) (e) 1. After each September primary, the name of each candidate not
2defeated in the primary who receives at least
6%
2% of the total vote cast for all
3candidates on all ballots at the primary for each separate state office except district
4attorney, and the percentage of the total vote received by that candidate.
Such The 5percentage shall be calculated within each district in the case of legislative
6candidates.
AB155, s. 5
7Section
5. 8.30 (2) of the statutes is amended to read:
AB155,16,148
8.30
(2) If no registration statement has been filed by or on behalf of a candidate
9for state or local office in accordance with s. 11.05 (2g)
or (2r) by the applicable
10deadline for filing nomination papers by
such the candidate, or the deadline for filing
11a declaration of candidacy for an office for which nomination papers are not filed, the
12name of the candidate may not appear on the ballot. This subsection may not be
13construed to exempt a candidate from applicable penalties if he or she files a
14registration statement later than the time prescribed in ss. 11.01 (1) and 11.05 (2g).
AB155, s. 6
15Section
6. 8.35 (4) (a) 1. a. and b. of the statutes are amended to read: