SB104: Bill Text

5. 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.

6. Deletes current law that makes disbursement limitations inapplicable to a candidate who accepts a grant when the candidate has an opponent who could have qualified for a grant but declines to accept one, and who declines to file an affidavit of voluntary compliance with disbursement and self-contribution limitations. However, the bill increases the disbursement limitation of the candidate who accepts a grant by an amount equal to 1) the amount of any contributions that are received by committees for the purpose of making independent disbursements to oppose that candidate or to support that candidate's opponent; 2) the total amount of contributions that conduits report they have transferred or intend to transfer to opposing candidates; and 3) the total amount of contributions accepted by opposing candidates above the level for which 24-hour reports are required (see below).

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.

Contribution limitations

Current law changes limitations on the maximum amount of contributions that may be given to and accepted by a candidate for state or local office from any single individual or committee.

The bill changes the maximum amount that may be given by an individual to a candidate for a major state office per campaign as follows: - See PDF for table

Also under current law, a candidate who receives a grant may make contributions to his or her own campaign in an amount or value not exceeding 200% of the limitation applicable to other individuals making contributions to his or her campaign. 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 disbursement level specified for the office that the candidate seeks. The total amount that a candidate may accept from the Wisconsin election campaign fund and from committees other than political party and legislative campaign committees is limited to 45% of that disbursement level.

This bill deletes the current aggregate limitations on contributions that may be received from committees and instead imposes an aggregate contribution limitation on the total amount or value of contributions that a candidate who accepts a grant may accept from all committees, including political party committees, during the entire campaign of the candidate, or if the candidate has an opponent for the nomination of his or her party at a primary election, after the date of the primary election, as follows:

1. For candidates for the offices of governor and lieutenant governor jointly, $330,000.

2. For a candidate for the office of attorney general, $65,000.

3. For a candidate for the office of secretary of state, state treasurer, justice, or state superintendent, $33,000.

4. For a candidate for the office of state senator, $20,000.

5. For a candidate for the office of representative to the assembly, $10,000.

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, or if the candidate has an opponent for the nomination of his or her party at a primary election, after the date of the primary election, as follows:

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

2. For a candidate for the office of attorney general, $200,000.

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

4. For a candidate for the office of state senator, $60,000.

5. For a candidate for the office of representative to the assembly, $30,000.

Under the bill, the limitation upon candidates who receive grants making contributions to their own campaigns and the aggregate contribution limitations are subject to a biennial cost-of-living adjustment, beginning in 2004, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

Other contribution restrictions

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

Wisconsin election campaign fund

I. Sources and uses of funds

Under current law, the Wisconsin election campaign fund is financed through an individual income tax "checkoff." Every individual filing a state income tax return who has a tax liability or is entitled to a tax refund may direct that $1 of general purpose revenue be transferred to the fund. Individuals filing a joint return may separately choose whether to direct that the $1 transfer be made. All moneys transferred to the fund are placed in accounts for specified state offices, and candidates for those offices at the general or a special election may qualify for grants from the fund to be used for specified campaign expenses. No moneys in the fund may be used for any other purpose. Grants at special elections are funded by reallocating moneys set aside to provide grants to candidates at the general election, to the extent that moneys are available.

This bill changes the name of the Wisconsin election campaign fund to the "clean government fund." The bill deletes the checkoff procedure and provides, instead, for the necessary revenue to be transferred to the fund 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 6% 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 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. The contributions may be received by the candidate directly from individuals or may be transferred to the candidate by a conduit. For a candidate for the office of governor, lieutenant governor, secretary of state, state treasurer, attorney general, justice of the supreme court, or superintendent of public instruction, the amount is 5% 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 10% 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 6% of the votes cast for all candidates for that office at a partisan primary, if a primary was held, do not accept a grant and do not voluntarily comply with the contribution and disbursement limitations for that office. The maximum grant that a candidate may receive is the amount that, when added to all other contributions accepted from sources other than individuals, political party committees and legislative campaign committees, is equal to 45% of the authorized disbursement level for the office that the candidate seeks, if there are sufficient moneys in the Wisconsin election campaign fund to finance the full amount of grants for which candidates qualify.

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

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

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

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

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

5. For a candidate for the office of representative to the assembly, $2,500.

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

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

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

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

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

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

4. For a candidate for the office of state senator, $40,000.

5. For a candidate for the office of representative to the assembly, $20,000.

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

Under the bill, qualifying amounts and grant amounts are subject to a biennial cost-of-living adjustment, beginning in 2004, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

Penalties for violations

Currently, violators of the campaign finance law are subject to a forfeiture (civil penalty) of not more than $500 for each violation, except that violators of contribution limitations are subject to a forfeiture of not more than treble the amount unlawfully contributed. In addition, currently, any person who is delinquent in filing a report is subject to a forfeiture of not more than $50 or one percent of the annual salary of the office for which a candidate is being supported or opposed, whichever is greater, for each day of delinquency. Currently, any person who makes an unlawful contribution is subject to a forfeiture of treble the amount of the unlawful contribution.

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

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

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

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

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

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

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

Nonseverability

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

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB104, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

SB104,11,7 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 organized exclusively for political purposes under whose name candidates appear on a ballot at any election, and all county, congressional, legislative, local and other affiliated committees authorized to operate under the same name. For purposes of ch. 11, the term does not include a legislative campaign committee or a committee filing an oath under s. 11.06 (7).

SB104, s. 2 Section 2. 5.02 (18) of the statutes is amended to read:

SB104,11,12 5.02 (18) "September primary" means the primary held the 2nd Tuesday in September to nominate candidates to be voted for at the general election, and to determine which candidates for state offices other than district attorney may participate in the Wisconsin election campaign clean government fund.

SB104, s. 3 Section 3. 7.08 (2) (c) and (cm) of the statutes are amended to read:

SB104,12,6 7.08 (2) (c) As soon as possible after the canvass of the spring and September primary votes, but no later than the first Tuesday in March and the 4th Tuesday in September, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom who the board determines to be is eligible to receive payments from the Wisconsin election campaign clean government fund. The board shall also transmit a similar list of candidates who the board determines is eligible to receive a grant under s. 11.50 (9) (b), (ba), (bb), or (bc) within 3 days after any candidate qualifies to receive such a grant. Each list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

SB104,12,18 (cm) As soon as possible after the canvass of a special primary, or the date that the primary would be held, if required, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom who the board determines to be is eligible to receive a grant from the Wisconsin election campaign clean government fund prior to the election. The board shall also transmit a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and whom who the board determines to be is eligible to receive a grant under s. 11.50 (1) (a) 2. after the special election. The or a grant under s. 11.50 (9) (b), (ba), (bb), or (bc) within 3 days after any candidate qualifies to receive such a grant. Each list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

SB104, s. 4 Section 4. 8.35 (4) (b) of the statutes is amended to read:

SB104,13,2 8.35 (4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the Wisconsin election campaign clean government fund shall be immediately transferred to any candidate who is appointed to replace such candidate, upon filing of a proper application therefor under s. 11.50 (2). If there is no candidate appointed or if no proper application is filed within 7 days of the date on which the vacancy occurs, such moneys shall revert to the state as provided in s. 11.50 (8).

SB104, s. 5 Section 5. 10.02 (3) (b) 2m. of the statutes is amended to read:

SB104,13,13 10.02 (3) (b) 2m. At the September primary, the elector shall select the party ballot of his or her choice or the ballot containing the names of the independent candidates for state office, and make a cross [8] in the square at the right of or depress the lever or button next to the candidate's name for each office for whom the elector intends to vote or insert or write in the name of the elector's choice for a party candidate, if any. In order to qualify for participation in the Wisconsin election campaign clean government fund, a candidate for state office at the September primary, other than a candidate for district attorney, must receive at least 6% of all votes cast on all ballots for the office for which he or she is a candidate, in addition to other requirements.

SB104, s. 6 Section 6. 11.01 (5m) of the statutes is amended to read:

SB104,13,19 11.01 (5m) "Conduit" means an individual who or an organization a committee which receives a contribution of money and transfers the contribution to another individual or organization committee without exercising discretion as to the amount which is transferred and the individual to whom or organization committee to which the transfer is made.

SB104, s. 7 Section 7. 11.01 (12s) of the statutes is repealed.

SB104, s. 8 Section 8. 11.01 (16) (a) 3. of the statutes is created to read:

SB104,14,3 11.01 (16) (a) 3. A communication that is made by means of one or more communications media, other than a communication that is exempt from reporting under s. 11.29, that is made during the period beginning on the 60th day preceding an election and ending on the date of that election and that includes a reference to a candidate whose name is certified under s. 7.08 (2) (a) or 8.50 (1) (d) to appear on the ballot at that election, a reference to an office to be filled at that election or a reference to a political party.

SB104, s. 9 Section 9. 11.05 (3) (c) of the statutes is amended to read:

SB104,14,8 11.05 (3) (c) In the case of a committee, a statement as to whether the committee is a personal campaign committee, a political party committee, a legislative campaign committee, a support committee or a special interest committee.

SB104, s. 10 Section 10. 11.05 (3) (d) of the statutes is created to read:

SB104,14,10 11.05 (3) (d) An indication of whether the proposed registrant is a conduit.

SB104, s. 11 Section 11. 11.05 (3) (o) of the statutes is repealed.

SB104, s. 12 Section 12. 11.05 (9) (b) of the statutes is amended to read:

SB104,14,18 11.05 (9) (b) An individual who or a committee or group which receives a contribution of money and transfers the contribution to another individual, committee or group while acting as a conduit is not subject to registration under this section unless the individual, committee or group transfers the contribution to a candidate or a personal campaign, legislative campaign, political party or support committee.

SB104, s. 13 Section 13. 11.06 (2) of the statutes is amended to read:

SB104,15,5 11.06 (2) Disclosure of certain indirect disbursements. Notwithstanding sub. (1), if a disbursement is made or obligation incurred by an individual other than a candidate or by a committee or group which is not primarily organized for political purposes, and the disbursement does not constitute a contribution to any candidate or other individual, committee or group, the disbursement or obligation is required to be reported only if the purpose is to expressly advocate the election or defeat of a clearly identified candidate or the adoption or rejection of a referendum or if the disbursement is made or the obligation incurred to make a communication that is specified in s. 11.01 (16) (a) 3. The exemption provided by this subsection shall in no case be construed to apply to a political party, legislative campaign, personal campaign or support committee.