LRB-4824/1
RJM&JTK:kmg:kjf
2001 - 2002 LEGISLATURE
January 30, 2002 - Printed by direction of Senate Chief Clerk.
SB104-engrossed,2,18
1An Act to repeal 11.01 (12s), 11.05 (3) (o), 11.26 (9) (c), 11.265, 11.31 (2m), 11.50
2(2) (h), 11.50 (2) (i) and 11.50 (3);
to renumber 11.05 (2r) (title), 11.24 (2), 11.50
3(1) (a) 1. and 11.50 (1) (a) 2.;
to renumber and amend 11.05 (1), 11.05 (2), 11.05
4(2r), 11.12 (6), 11.26 (9) (a), 11.26 (9) (b), 11.50 (9), 19.49 (5) and 19.59 (7);
to
5amend 5.02 (13), 7.08 (2) (c) and (cm), 8.10 (3) (intro.), 8.15 (6) (intro.), 8.20 (4),
68.30 (2), 8.35 (4) (a) 1. a. and b., 8.35 (4) (c) and (d), 11.05 (3) (c), 11.05 (5), 11.05
7(12) (b), 11.05 (13), 11.06 (1) (intro.), 11.06 (1) (e), 11.06 (2), 11.06 (4) (b), 11.06
8(5), 11.06 (7m) (a), 11.06 (7m) (c), 11.06 (11) (c), 11.07 (1), 11.07 (5), 11.09 (3),
911.10 (1), 11.12 (2), 11.12 (4), 11.12 (5), 11.14 (3), 11.16 (2), 11.16 (5), 11.19 (title),
1011.19 (1), 11.20 (1), 11.20 (7), 11.20 (9), 11.20 (10) (a), 11.20 (12), 11.21 (2), 11.21
11(15), 11.21 (16), 11.22 (3), 11.23 (1), 11.23 (2), 11.25 (2) (b), 11.26 (1) (intro.), 11.26
12(2) (intro.), 11.26 (2) (a), 11.26 (4), 11.26 (8), 11.26 (10), 11.26 (12m), 11.31 (1)
13(intro.), 11.31 (1) (a) to (d), 11.31 (1) (e) and (f), 11.31 (2), 11.31 (3), 11.38 (1) (a)
142., 11.38 (6), 11.38 (8) (b), 11.50 (2) (a), 11.50 (2) (b) 5., 11.50 (2) (c), 11.50 (2) (g),
111.50 (5), 11.50 (6), 11.50 (9) (title), 11.50 (11) (a), 11.50 (11) (e), 11.60 (4), 11.61
2(1) (a), 19.53 (6), 19.59 (8) (c), 20.510 (1) (q), 25.42, 71.10 (3) (a) and 71.10 (3) (b);
3to repeal and recreate 11.05 (9) (title) and 11.50 (4); and
to create 7.08 (2)
4(cs), 11.001 (2m), 11.01 (16) (a) 3., 11.05 (1) (b), 11.05 (2) (b), 11.05 (3) (m), 11.05
5(3) (r), 11.06 (2m) (b) to (d), 11.12 (2m), 11.12 (6) (c) and (d), 11.12 (8) and (9),
611.20 (2s), 11.20 (2t), 11.24 (1w), 11.24 (4), 11.26 (2) (ad) to (au), 11.26 (8m), 11.26
7(9) (a) 1. to 7., 11.26 (9) (b) 1. to 7., 11.31 (1) (de), 11.31 (1m), 11.31 (3p), 11.31
8(9), 11.50 (1) (a) 1. (intro.), 11.50 (1) (a) 2m., 11.50 (1) (am), 11.50 (1) (bm) and
9(cm), 11.50 (2) (j), 11.50 (2m), 11.50 (2s), 11.50 (2w), 11.50 (4m), 11.50 (9) (b), (ba)
10and (bb), 11.50 (14), 11.60 (3s) and (3t), 13.625 (3m), 19.42 (3m), (4g) and (4r),
1119.45 (13), 19.49 (1m), 19.49 (5) (b), 19.535, 19.59 (1) (br), 19.59 (7) (b), 19.59 (8)
12(cm) and (cn), 20.855 (4) (ba) and 806.04 (11m) of the statutes;
relating to:
13campaign financing, official action in return for providing or withholding
14political contributions, services, or other things of value, lobbying regulation,
15designations for the Wisconsin election campaign fund by individuals filing
16state income tax returns, staffing of the elections board, providing exemptions
17from emergency rule procedures, granting rule-making authority, making
18appropriations, and providing penalties.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed 2001 Senate Bill 104, as ordered to a third reading on
January 29, 2002, consists of Senate Substitute Amendment 1, as adopted in the
senate on that date, as affected by the following Senate Amendments adopted in the
senate on that date: Senate Amendments 1, 2, 3, 5, and 6 (as affected by chief clerk's
correction).
Senate Amendments 3 and 6 both affect proposed s. 11.50 (9) (b). This bill
reflects the effect of both amendments, which causes certain cross-references to be
omitted.
Senate Amendment 2 affects the version of proposed s. 11.50 (9) (b) that was
deleted by Senate Amendment 6. As a result, the treatment from Senate
Amendment 2 is not included in this bill.
Content of Engrossed 2001 Senate Bill 104:
This bill makes numerous changes in the campaign financing law. The bill also
makes changes to the income tax laws and to the staffing of the elections board.
Significant changes include:
Filing of campaign finance reports
Exemptions from registration and reporting
Currently, any individual who accepts contributions, makes disbursements, or
incurs obligations, and any committee or group that makes or accepts contributions,
makes disbursements, or incurs obligations, in connection with one or more elections
for state or local office or one or more state or local referenda exceeding $25
cumulatively within a calendar year is potentially subject to requirements to register
with the appropriate filing officer and to file campaign finance reports.
This bill provides that an individual who accepts contributions, makes
disbursements, or incurs obligations or a group that makes or accepts contributions,
makes disbursements, or incurs obligations in connection with one or more referenda
is not subject to registration and reporting requirements until the individual or
group engages in activity exceeding $100 cumulatively within a calendar year.
The bill also permits an individual or committee to claim an exemption from
reporting requirements if the individual or committee does not accept contributions,
make disbursements, or incur obligations exceeding $1,000 cumulatively within a
calendar year with respect to an election for state office, and does not accept
contributions exceeding $100 from a single source cumulatively within a calendar
year. If an individual or committee does not accept contributions, make
disbursements, or incur obligations with respect to an election for any state office but
accepts contributions, makes disbursements, or incurs obligations with respect to an
election for local office, the bill permits the individual or committee to claim an
exemption from reporting requirements only if the individual or committee does not
accept contributions, make disbursements, or incur obligations exceeding $100
cumulatively within a calendar year.
Electronic filing
Currently, reports under the campaign finance law must be filed by certain
dates specified by law and must cover time periods specified by law. Candidates for
state office or their personal campaign or authorized support committees and other
individuals, committees, and groups supporting or opposing candidates for state
office or statewide ballot questions file their reports with the state elections board.
Each registrant for whom the elections board serves as a filing agency and who or
that accepts contributions in a total amount or value of $20,000 or more during a
campaign period, or a biennial period for a registrant other than a candidate or
personal campaign or support committee, must file reports with the board
electronically. Any registrant who or that files a report electronically must also file
a copy of the report recorded on a medium prescribed by the board.
This bill requires each committee that is currently required to file its campaign
finance reports electronically to file those reports within 24 hours after a reportable
transaction occurs. Under the bill, once a registrant becomes subject to an electronic
reporting requirement, the requirement continues to apply until a termination
report is filed, regardless of the level of continuing financial activity of the registrant.
In accordance with current law, the bill also requires registrants who file
electronically to file copies of reports, at the times currently prescribed by law,
recorded on a medium prescribed by the board. The change applies effective with
reports filed on or after the day on which the bill becomes law.
Mass media activities
Currently, individuals who accept contributions, organizations that make or
accept contributions, and 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.
With certain exceptions, this bill imposes registration and reporting
requirements, in addition, upon any individual who and organization that, within
60 days of an election and by means of communications media, makes
communications which include a reference to 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.
Special reporting by certain registrants
Currently, a committee making contributions or a candidate or other individual
or committee accepting contributions, making disbursements, 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 a major
state office (the office of governor, lieutenant governor, attorney general, secretary
of state, state treasurer, superintendent of public instruction, justice of the supreme
court, state senator, or representative to the assembly) who does not accept a public
grant (see below) and who makes any disbursement after the candidate has
accumulated cash in his or her campaign depository or has made disbursements in
his or her campaign exceeding a combined total of 75% of the amount of the
disbursement limitation for the office that the candidate seeks, to file daily reports,
by electronic mail or facsimile transmission, with the elections board and with each
candidate whose name appears on the ballot for the office in connection with which
the disbursement is made. The daily reports may be filed no later than 24 hours after
each disbursement is made, and must include the information that is currently
required to be reported pertaining to disbursements made by candidates. The daily
reports must be filed during the time period beginning with the later of the date of
the disbursement that triggers the requirement or the 7th day after the applicable
primary election or the date that a primary would be held, if required, and ending
with date of the election at which the candidate seeks office.
This bill also creates additional reporting requirements, applicable to certain
special interest committees. Under the bill, reporting may be required of any special
interest committee, other than a conduit, that intends to receive any contribution,
make any disbursement, or incur any obligation to make a disbursement (as
currently defined) independently of a candidate for the purpose of advocating the
election or defeat of a clearly identified candidate for a major state office at the
general or a special election or any applicable primary election. In addition,
reporting may be required of any special interest committee, other than a conduit,
that intends to receive any contribution, make any disbursement, or incur any
obligation to make any other expenditure independently of a candidate for the
purpose of making communications, within 60 days of an election and by means of
communications media, which include a reference to a candidate at that election, an
office to be filled at that election, or a political party. These additional reporting
requirements do not apply to communications that are made by a corporation,
cooperative, or nonpolitical voluntary association and that are limited to the
corporation's, cooperative's, or association's members, shareholders, or subscribers.
Under the bill, the special interest committee must file these additional reports
on the 63rd, 42nd, and 21st day prior to the applicable election, and in the case of a
special election, on the 21st day prior to that election. The reports must specify the
name of each candidate who is supported or whose opponent is opposed and the total
amount of contributions to be received, disbursements or other expenditures to be
made, and obligations to be incurred for that purpose during the 21-day period
following the date on which the report is due to be filed. The bill also requires
additional reports to be filed on the 39th and 18th days preceding each general
election and the 18th day preceding each special election, itemizing the actual
contributions transferred and received, disbursements made, and obligations
incurred for the applicable 21-day period.
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. Increases the total disbursement limitation for a candidate for partisan office
at a general or special election whose name appears on the ballot at a primary
election, who receives less than twice as many votes at that election as another
candidate for the same office within the same party, and who has an opponent at the
general or special election who received at least 6% of the votes cast for all candidates
for that office at the primary election. Under the bill, the increased disbursement
limitation 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 or independent
expenditures other than disbursements made by special interest committees in close
proximity to the election for the purpose of making certain mass communications
that are made to oppose that candidate, or to support that candidate's opponent, if
that amount exceeds 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
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.
This bill establishes specified limitations on committee contributions to
candidates for statewide office as follows: a) candidates for governor, $45,000; b)
candidates for lieutenant governor, $15,000; c) candidates for attorney general,
$25,000; and d) candidates for secretary of state, state treasurer, superintendent of
public instruction, or justice of the supreme court, $10,000. Under the bill, 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 $18,000, and the aggregate limitation on contributions that a political
party may accept during a biennium from all committees is increased to $450,000.
Under current law, the aggregate contributions accepted by a candidate for
state or local office from all committees, when combined with any grant received from
the Wisconsin election campaign fund, may not exceed 65% of the disbursement level
or limitation for the office that the candidate seeks. In addition, the contributions
received by a candidate for state or local office from all committees other than
political party or legislative campaign committees, when combined with any grant
received from the Wisconsin election campaign fund, may not exceed 45% of the
disbursement level or limitation for the office that the candidate seeks. This bill
provides instead that the aggregate contributions accepted by a candidate for state
or local office from all political party committees may not exceed the following:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
In addition, the bill provides that the aggregate contributions received by a
candidate for state or local office from all committees other than political party
committees may not exceed the following:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
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. 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 an elective state official or personal campaign committee of an
elective state official from soliciting a lobbyist or principal (person who employs a
lobbyist) to arrange for another person to make a contribution to that official or
personal campaign committee or to another elective state official or the personal
campaign committee of that official.
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 individuals contributing to the
conduit and applies the same limitations on the amounts of conduit contributions to
candidates as apply to committee contributions to candidates. The change does not
affect aggregate limitations on the amounts of contributions that candidates may
accept from committees.
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.
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.