AB226: Bill Text

Act 109 did not include this change.

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 six percent 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 six percent of the vote; or b) receive at least six percent of the votes cast at the special election.

2. The candidate must have an opponent in the election.

3. The candidate must receive, during a specified time period, a specified amount through contributions from individuals of $100 or less. For a candidate for the office of governor, lieutenant governor, secretary of state, state treasurer, attorney general, justice of the supreme court, or superintendent of public instruction, the amount is five percent of the authorized disbursement level for the office which the candidate seeks. For a candidate for the office of state senator or representative to the assembly, the amount is ten percent of the authorized disbursement level for the office 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 six percent 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 percent 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 five percent 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, at least 50 percent of those contributions must be made by individuals who reside in the district in which the candidate seeks office, except that a candidate may substitute contributions received from political party committees for not more than 50 percent of the contributions required to be received from residents of the district.

Act 109 also made changes to grant-qualifying requirements, but included different provisions.

2. It provides that the maximum grant that a candidate for state office may receive is that amount which, when added to all other contributions accepted by the candidate from committees other than political party committees, is equal to 35 percent of the disbursement limitation for the office that the candidate seeks, if there is sufficient money in the Wisconsin election campaign fund to finance that grant, unless the candidate qualifies to receive a supplemental grant (see below).

Act 109 included other changes to maximum grant amounts.

3. It provides that a candidate who accepts a grant shall receive a supplemental grant in a maximum 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; and b) the total amount of any independent disbursements in close proximity to the election that are made by special interest committees to oppose that candidate, or to support that candidate's opponent, together with the total amount of any expenditures made independently of any candidate in close proximity to the election for the purpose of making certain mass communications to oppose the candidate who accepts a grant or to support that candidate's opponent, if that total amount exceeds ten percent of the disbursement limitation for the office that the candidate seeks, except that the total supplemental grant received by a candidate may not exceed an amount equal to three times the disbursement limitation for the office that the candidate seeks. Supplemental grants are contingent upon availability of moneys in the Wisconsin election campaign fund sufficient to make payment of the grants.

Act 109 included provisions for supplemental grants, but under different conditions.

4. It requires the state treasurer to electronically transmit supplemental grants to qualifying candidates who so request as soon as possible after the candidates qualify to receive the supplemental grants, but in no case later than the end of the 3rd business day after the Elections Board notifies the treasurer that a candidate has qualified to receive a grant.

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, 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 person, including a candidate or committee other than a conduit, makes a disbursement, or makes any other expenditure for the purpose of making certain mass media communications (see above) 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 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 person, including any of these candidates or committees, makes one or more disbursements or other expenditures for such a purpose in an amount that is more or less than the amount reported by that person:

l. By more than five percent but not more than ten percent, the person must forfeit four times the amount of the difference.

2. By more than ten percent but not more than 15 percent, the person must forfeit six times the amount of the difference.

3. By more than 15 percent, the person must forfeit eight times the amount of the difference.

Act 109 did not include this change.

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.

Individual income tax credit

This bill creates a nonrefundable individual income tax credit for contributions to the Public Integrity Endowment. Under the bill, an individual may claim as an income tax credit, up to the amount of the individual's income tax liability, any amount that he or she contributes to the Public Integrity Endowment. If a married couple files a joint return, each spouse may claim the credit.

Initial applicability

All campaign finance changes under the bill apply to elections held on or after January 1, 2006, except that the directive to incorporate a Public Integrity Endowment and the creation of an individual income tax credit for contributions to the endowment takes effect on the day on which the bill becomes law and changes to the income tax checkoff apply to taxable years beginning on January 1 of the year in which the bill becomes law, if the bill becomes law by July 31, in any year, or otherwise to taxable years beginning on January 1 of the following year.

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 certain expenditures for mass communications; b) parts relating to the provision of supplemental grants to candidates whose opponents exceed disbursement limitations or who are opposed or whose opponents are supported by any reportable expenditures for mass communications or independent disbursements, including those that are reportable under current law; c) parts relating to the reporting such expenditures or disbursements; 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; and e) parts relating to prohibiting contributions from being made by committees to special interest committees.

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

AB226, s. 1 Section 1. 5.02 (13) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,16,8 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 and 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 committee filing an oath under s. 11.06 (7).

AB226, s. 2 Section 2. 5.05 (1) (e) of the statutes is amended to read:

AB226,16,19 5.05 (1) (e) Delegate to its executive director the authority to issue a subpoena under par. (b), apply for a search warrant under par. (b), commence an action under par. (d), intervene in an action or proceeding under sub. (9), issue an order under s. 5.06, exempt a polling place from accessibility requirements under s. 5.25 (4) (a), exempt a municipality from the requirement to use voting machines or an electronic voting system under s. 5.40 (5m), approve an electronic data recording system for maintaining poll lists under s. 6.79, or authorize nonappointment of an individual who is nominated to serve as an election official under s. 7.30 (4) (e), or make a determination under s. 11.065 (3), subject to such limitations as the board deems appropriate.

AB226, s. 3 Section 3. 5.05 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,17,10 5.05 (2) Auditing. In addition to the facial examination of reports and statements required under s. 11.21 (13), the board shall conduct an audit of reports and statements which are required to be filed with it to determine whether violations of ch. 11 have occurred. The board may examine records relating to matters required to be treated in such reports and statements. The board shall make official note in the file of a candidate, committee, group, or individual under ch. 11 of any error or other discrepancy which the board discovers and shall inform the person submitting the report or statement.

AB226, s. 4 Section 4. 7.08 (2) (c) and (cm) of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB226,17,23 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, electronically 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 who the board determines are eligible to receive payments from the Wisconsin election campaign fund. The board shall also electronically transmit a similar list of candidates who the board determines are eligible to receive a grant under s. 11.50 (9) (ba) or (bb) within 24 hours 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.

AB226,18,11 (cm) As soon as possible after the canvass of a special primary, or the date that the primary would be held, if required, electronically 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 who the board determines are eligible to receive a grant from the Wisconsin election campaign fund prior to the election. The board shall also electronically transmit a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and who the board determines are eligible to receive a grant under s. 11.50 (1) (a) 1. b. after the special election. The board shall electronically transmit a similar list of candidates who the board determines are eligible to receive a grant under s. 11.50 (9) (ba) or (bb) within 24 hours 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.

AB226, s. 5 Section 5. 7.08 (2) (cs) of the statutes is created to read:

AB226,18,15 7.08 (2) (cs) In each even-numbered year, certify to the state treasurer for the period beginning with the month following certification and ending with the month in which the next certification is made by the board:

AB226,18,19 1. No later than July 1, the name of each political party that qualifies under s. 11.50 (1) (am) 1. as an eligible political party as of the preceding June 1 and whose state chairperson has filed a request to establish an account for the party under s. 11.50 (2s) (a).

AB226,18,23 2. No later than December 15, the name of each political party that qualifies under s. 11.50 (1) (am) 2. as an eligible political party as of the date of the preceding general election and whose state chairperson has filed a written request to establish an account for the party under s. 11.50 (2s) (a).

AB226, s. 6 Section 6. 8.30 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,19,7 8.30 (2) If no registration statement has been filed by or on behalf of a candidate for state or local office in accordance with s. 11.05 (2g) by the applicable deadline for filing nomination papers by the candidate, or the deadline for filing a declaration of candidacy for an office for which nomination papers are not filed, the name of the candidate may not appear on the ballot. This subsection may not be construed to exempt a candidate from applicable penalties if he or she files a registration statement later than the time prescribed in ss. 11.01 (1) and 11.05 (2g).

AB226, s. 7 Section 7. 8.35 (4) (a) 1. a. and b. of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB226,19,14 8.35 (4) (a) 1. a. If the former candidate was a partisan candidate, donated to the former candidate's local or state political party, donated to a charitable organization, or transferred to the board for deposit in the Wisconsin election campaign fund, as instructed by the former candidate or, if the candidate left no instruction, by the former candidate's next of kin; or

AB226,19,18 b. If the former candidate was a nonpartisan candidate, donated to a charitable organization or transferred to the board for deposit in the Wisconsin election campaign fund, as instructed by the former candidate or, if the candidate left no instruction, by the former candidate's next of kin; or

AB226, s. 8 Section 8. 8.35 (4) (c) and (d) of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB226,20,4 8.35 (4) (c) The transfer to the replacement candidate under par. (b) shall be made and reported to the appropriate filing officer by the former candidate's campaign treasurer. If the former candidate is deceased and was serving as his or her own campaign treasurer, the former candidate's petitioner or personal representative shall make the transfer and file the report. The report shall be made at the appropriate interval under s. 11.20 (2) or (4) and shall include a complete statement of all contributions, disbursements, and incurred obligations pursuant to s. 11.06 (1) covering the period from the day after the last date covered on the former candidate's most recent report to the date of disposition.

AB226,20,7 (d) The newly appointed candidate shall file his or her report at the next appropriate interval under s. 11.20 (2) or (4) after his or her appointment. The appointed candidate shall include any transferred moneys in his or her first report.

AB226, s. 9 Section 9. 11.001 (2m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,20,16 11.001 (2m) The legislature finds a compelling justification for minimal disclosure of all communications made near the time of an election that include a reference to a clearly identified candidate at that election in order to permit increased funding for candidates who are affected by those communications. This minimal disclosure burden is outweighed by the need to establish an effective funding mechanism for affected candidates to effectively respond to communications that may impact an election.

AB226, s. 10 Section 10. 11.01 (4m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,21,2 11.01 (4m) "Communication" means a message, other than a message exclusively between a corporation, cooperative, or voluntary association and its members, share holders, and subscribers, that is transmitted by means of a printed advertisement, billboard, handbill, sample ballot, radio or television advertisement, telephone call, or mass mailing, or any medium that may be utilized for the purpose of disseminating or broadcasting a message, but not including a poll conducted solely for the purpose of identifying or collecting data concerning the attitudes or preferences of electors.

AB226, s. 11 Section 11. 11.01 (12s) of the statutes is repealed.

AB226, s. 12 Section 12. 11.01 (12w) of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB226, s. 13 Section 13. 11.01 (13) of the statutes, as created by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,21,9 11.01 (13) "Mass mailing" means the distribution of 50 or more pieces of substantially identical material.

AB226, s. 14 Section 14. 11.01 (14) of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB226, s. 15 Section 15. 11.01 (14m) of the statutes is created to read:

AB226,21,24 11.01 (14m) "Noncandidate election expenditure" means an expenditure made for the purpose of making a communication that is made during the period beginning on the 30th day preceding a primary election for an office to be filled at a general, special, or spring election and the date of that general, special, or spring election or, if no primary is held, during the period beginning on the 60th day preceding a general, special, or spring election at which an office is filled and the date of that election; that contains a reference to a clearly identified candidate for an office specified in s. 11.31 (1) (a) to (de), (e), or (f) to be filled at that election; that is made without cooperation or consultation with such a candidate, or any authorized committee or agent of such a candidate; and that is not made in concert with, or at the request or suggestion of, such a candidate, or any authorized committee or agent of such a candidate.

AB226, s. 16 Section 16. 11.01 (16) (a) 3. of the statutes, as created by 2001 Wisconsin Act 109, is repealed.

AB226, s. 17 Section 17. 11.01 (16) (c) of the statutes is created to read:

AB226,22,9 11.01 (16) (c) Except with respect to an act of a candidate or personal campaign, support, or political party committee, an act for "political purposes" does not include the making of an expenditure, including a noncandidate election expenditure under s. 11.065, for a communication which does not expressly advocate the election, defeat, recall, or retention of a clearly identified candidate or a particular result at a referendum.

AB226, s. 18 Section 18. 11.01 (17g) and (17r) of the statutes, as created by 2001 Wisconsin Act 109, are repealed.

AB226, s. 19 Section 19. 11.05 (1) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,22,20 11.05 (1) Committees and groups. (a) Except as provided in s. 9.10 (2) (d), every committee, other than a personal campaign committee, that makes or accepts contributions, incurs obligations, or makes disbursements in a calendar year in an aggregate amount in excess of $25 shall file a statement with the appropriate filing officer giving the information required by sub. (3). In the case of any committee other than a personal campaign committee, the statement shall be filed by the treasurer. A personal campaign committee shall register under sub. (2g).

AB226,22,24 (b) Every political group subject to registration under s. 11.23 which makes or accepts contributions, incurs obligations, or makes disbursements in a calendar year in an aggregate amount in excess of $100 shall file a statement with the appropriate filing officer giving the information required by sub. (3).

AB226, s. 20 Section 20. 11.05 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,23,10 11.05 (2) Individuals. (a) Except as provided in s. 9.10 (2) (d), every individual, other than a candidate or agent of a candidate, who accepts contributions, incurs obligations, or makes disbursements with respect to one or more elections for state or local office in a calendar year in an aggregate amount in excess of $25 shall file a statement with the appropriate filing officer giving the information required by sub. (3). An individual who guarantees a loan on which an individual, committee or group subject to a registration requirement defaults is not subject to registration under this subsection solely as a result of such default.

AB226,23,14 (b) Every individual who accepts contributions, incurs obligations, or makes disbursements with respect to one or more referenda in a calendar year in an aggregate amount in excess of $100 shall file a statement with the appropriate filing officer giving the information required by sub. (3).

AB226, s. 21 Section 21. 11.05 (2r) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed.

AB226, s. 22 Section 22. 11.05 (3) (c) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,23,21 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 support committee, or a special interest committee.

AB226, s. 23 Section 23. 11.05 (3) (m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,24,3 11.05 (3) (m) In the case of a personal campaign committee, the name of the candidate on whose behalf the committee was formed or intends to operate and the office or offices that the candidate seeks.

AB226, s. 24 Section 24. 11.05 (3) (o) of the statutes is repealed.

AB226, s. 25 Section 25. 11.05 (3) (r) of the statutes, as created by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,24,9 11.05 (3) (r) In the case of a candidate or personal campaign committee of a candidate, the telephone number or numbers and a facsimile transmission number or electronic mail address, if any, at which the candidate may be contacted.

AB226, s. 26 Section 26. 11.05 (5) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB226,25,2 11.05 (5) Change of information. Any change in information previously submitted in a statement of registration shall be reported by the registrant to the appropriate filing officer within 10 days following the change. This period does not apply in case of change of an indication made under s. 11.06 (2m), which shall be reported no later than the date that a registrant is subject to a filing requirement under s. 11.06 (2m). Any such change may be reported only by the individual or by the officer who has succeeded to the position of an individual who signed the original statement; but in the case of a personal campaign committee, a candidate or campaign treasurer may report a change in the statement except as provided in s. 11.10 (2), and in the case of any other committee or group, the chief executive officer or treasurer indicated on the statement may report a change. If a preexisting support committee is adopted by a candidate as his or her personal campaign committee, the candidate shall file an amendment to the committee's statement under this subsection indicating that all information contained in the statement is true, correct and complete.

AB226, s. 27 Section 27. 11.05 (5r) of the statutes is created to read: