Act 109 did not include this change
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.
Act 109 included similar changes, but in some cases specified different
amounts.
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 
Act 109 did not include this change, but created other exceptions to this
limitation.
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
Act 109 made different changes to amounts of this limitation.
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.
This change was included in Act 109.
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.
This change was included in Act 109.
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.
Act 109 contained a similar but not identical provision.
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.
Act 109 did not include this change.
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.
Act 109 did not include this change.
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 made by an individual that is
transferred by a conduit in accordance with current law as a contribution from the
individual contributing to the conduit only for purposes of individual contribution
limitations and qualification for a grant from the Wisconsin election campaign fund
(see below). Under the bill, contributions made by conduits are considered to be
committee contributions for purposes of limitations on the amounts of contributions
that candidates may accept from committees.
Act 109 did not include this change.
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.
This change was included in Act 109.
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 does the following:
1. It 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.
Except for the political party checkoff, Act 109 did not include these changes,
but made diverse other changes to the income tax checkoff.
2. It 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.
Act 109 contained similar but not identical provisions.
Grant eligibility requirements and amounts
Under current law, grants from the Wisconsin election campaign fund are
available to finance specified campaign expenses of 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. No grants are available to finance campaign expenses in
primary elections.
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 does the following:
1. It provides that a candidate for the office of state senator or representative
to the assembly must receive contributions equal to only 3% 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.
Act 109 also made changes to grant-qualifying requirements, but included
different provisions.
2. It 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.
Act 109 included this change, subject to certain limitations.
3. It provides that the maximum grant that a candidate for state office may
receive is the lesser of 45% of the authorized disbursement limitation for the office
that the candidate seeks, or that amount which, when added to all other
contributions accepted by the candidate, is equal to the disbursement limitation for
the office that the candidate seeks, unless the candidate qualifies to receive a grant
for primary election campaign expenses or a supplemental grant (see below).
Act 109 included other changes to maximum grant amounts
4. It permits a candidate who qualifies to receive a grant for a general, spring,
or special election campaign, who was opposed at the primary election preceding that
election by a candidate whose name appeared on the ballot, and who files double the
minimum number of nomination paper signatures currently required for the office
that the candidate seeks, to receive a grant to finance specified primary election
campaign expenses. This grant, in combination with the grant received by the
candidate for the election campaign, is equal to the lesser of 55% of the authorized
disbursement limitation for the office that the candidate seeks or that amount which,
when added to all other contributions accepted by the candidate, is equal to the
disbursement limitation for the office that the candidate seeks, unless the candidate
qualifies to receive a supplemental grant (see below).
Act 109 did not include this change.
5. It provides that a candidate who accepts a grant shall receive a supplemental
grant in an amount equal to: a) 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; b) the total amount of contributions received by special
interest committees for the purpose of opposing the candidate who accepts the grant
or supporting that candidate's opponent; and c) the total amount of any independent
obligations that are incurred and disbursements that are made by special interest
committees to oppose that candidate, or to support that candidate's opponent,
including any independent obligations incurred or disbursements made by special
interest committees in close proximity to the election for the purpose of making
certain mass communications to oppose that candidate or to support that candidate's
opponent, less disbursements made in payment of obligations previously reported,
if the total amount exceeds 10% of the disbursement limitation for the office that the
candidate seeks to the extent that this amount exceeds the amount of any additional
grant provided under b) attributable to contributions received by the committees
incurring the obligations or making the disbursements.
Act 109 included provisions for supplemental grants, but under different
conditions.
6. It 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.
Act 109 did not include this change.
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, effective February 1, 2003, 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 three years and six months, or both,
if the violation exceeds $100 in amount or value.
This bill provides that if any candidate or committee, other than a conduit,
accepts a contribution, makes a disbursement, makes any other expenditure for the
purpose of making certain mass media communications (see above) or incurs an
obligation to make a disbursement to support or oppose 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)
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 candidates or committees
accepts 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 candidate or committee:
l. By more than 5% but not more than 10%, the candidate or committee must
forfeit four times the amount of the difference.
2. By more than 10% but not more than 15%, the candidate or committee must
forfeit six times the amount of the difference.
3. By more than 15%, the candidate or committee must forfeit eight times the
amount of the difference.
Act 109 did not include this change.
Initial applicability
All campaign finance changes under the bill apply to elections held on or after
the day on which the bill becomes law.
Elections Board
This bill increases the authorized FTE positions for the board by 1.0 GPR
campaign finance investigator position and 1.0 GPR auditor position.
This change was included in Act 109.
Official action in return for providing
or withholding things of value
Currently, no person may offer or give to a state public official, including a
member of the legislature, directly or indirectly, and no state public official may
solicit or accept from any person, directly or indirectly, anything of value if it could
reasonably be expected to influence the state public official's vote, official actions, or
judgment, or could reasonably be considered a reward for any official action or
inaction on the part of the state public official.
This bill provides, in addition, that no state or local public official holding an
elective office may, directly or by means of an agent, give, or offer or promise to give,
or withhold, or offer or promise to withhold, his or her vote or influence, or promise
to take or refrain from taking official action with respect to any proposed or pending
matter in consideration of or upon condition that any other person make or refrain
from making a political contribution, or provide or refrain from providing any service
or other thing of value, to or for the benefit of a candidate, a political party, any other
person who is subject to a registration requirement under the campaign finance law,
or any person making a mass communication that contains a reference to a clearly
identified state or local public official or a candidate for state or local public office.
Violators are subject to a forfeiture (civil penalty) of not more than $5,000 for
each violation, and are also subject to a forfeiture in an amount equal to the amount
or value of any political contribution, service, or other thing of value that was
wrongfully obtained, or if no political contribution, service, or other thing of value
was obtained, an amount equal to the maximum contribution that an individual is
permitted to make to a candidate for the office sought or held by the official,
whichever amount is greater. Intentional violators are guilty of a misdemeanor and
are subject to a fine of not less than $100 nor more than $5,000 or imprisonment in
the county jail for not more than one year or both.
The bill also provides that, if the Ethics Board refuses or otherwise fails to
authorize an investigation or a district attorney fails to initiate a prosecution with
respect to any violation of the prohibition created by the bill within 30 days after
receiving a verified complaint alleging such a violation, the person making the
complaint may bring a lawsuit to recover a forfeiture on behalf of the state. If the
person making the complaint prevails, the bill provides that the court may require
the defendant to pay the complainant's attorney fees and costs, but any forfeiture
recovered must be paid to the state. If the court finds that a lawsuit was frivolous,
the court must award fees and costs to the defendant. The bill provides that no
complaint alleging a violation of the prohibition contained in the bill may be filed
during the period beginning 120 days before a general or spring election or the date
that a special election is ordered and ending on the date of that election against a
candidate who files a declaration of candidacy to have his or her name appear on the
ballot at that election.
This change was included in Act 109.
Public broadcasting television stations and public access channels
Act 109 requires, effective on July 1, 2003, that free time on public broadcasting
television stations and public access channels be provided to candidates for state
office. Under current law, the Federal Communications Commission grants licenses
for the operation of public broadcasting television stations. Also under current law,
a city, village, or town is authorized to grant a franchise to a person that allows that
person to operate a cable television system in the city, village, or town. Under the
franchise, the person may be required to provide cable television channels that the
city, village, or town may use for public, educational, or governmental purposes. A
channel that is used exclusively for public, rather than educational or governmental
purposes, is commonly referred to as a public access channel. A city, village, or town
may operate a public access channel, or a city, village, or town may allow another
person to operate the channel. Act 109 also required the Elections Board to
promulgate rules that require licensees of public broadcasting stations and
operators of public access channels to provide a minimum amount of free time to
candidates for state office at general, spring, and special elections. The rules must
require the same amount of time for each candidate for a particular state office, but
may require different amounts of time for different offices. These changes are not
affected by the court decision in Wisconsin Realtors Association v. Ponto (see above).
This bill repeals these provisions.
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 of the following parts of the bill is unconstitutional, then
all of the following parts are void: a) parts relating to the reporting of independent
obligations and disbursements for mass communications; b) parts relating to the
provision of supplemental grants to candidates who are opposed or whose opponents
are supported by any independent obligations or disbursements, including those
that are reportable under current law; c) parts relating to the reporting of
contributions received for the purpose of making such independent disbursements;
and d) parts relating to the provision of supplemental grants to candidates who are
intended to be opposed or whose opponents are intended to be supported through the
use of such contributions.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
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:
