AB392: Bill Text

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 percent 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 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 6 percent of the vote; or b) receive at least 6 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 5 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 10 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 6 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 3 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, by individuals at least 50 percent 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 percent 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 percent 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 in close proximity to the election 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 that total amount exceeds 10 percent 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, 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 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 percent but not more than 10 percent, the candidate or committee must forfeit four times the amount of the difference.

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

3. By more than 15 percent, 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.

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:

AB392, s. 1 Section 1. 5.02 (13) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB392,17,8 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).

AB392, s. 2 Section 2. 5.05 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB392,18,10 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.

AB392, s. 3 Section 3. 7.08 (2) (c) and (cm) of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB392,18,23 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, 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) (b), (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.

AB392,19,11 (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 who the board determines are eligible to receive a grant from the Wisconsin election campaign 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 who the board determines are eligible to receive a grant under s. 11.50 (1) (a) 2. 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) (b), (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.

AB392, s. 4 Section 4. 7.08 (2) (cs) of the statutes is created to read:

AB392,19,15 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:

AB392,19,19 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).

AB392,19,23 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).

AB392, s. 5 Section 5. 8.10 (3) (intro.) of the statutes is amended to read:

AB392,20,5 8.10 (3) (intro.) The certification of a qualified elector under s. 8.15 (4) (a) shall be appended to each nomination paper. The Except as otherwise required under s. 11.50 (4m) for a candidate who seeks a grant from the Wisconsin election campaign fund, the number of required signatures on nomination papers filed under this section is as follows:

AB392, s. 6 Section 6. 8.15 (6) (intro.) of the statutes is amended to read:

AB392,20,9 8.15 (6) (intro.) The Except as otherwise required under s. 11.50 (4m) for a candidate who seeks a grant from the Wisconsin election campaign fund, the number of required signatures on nomination papers shall be as follows:

AB392, s. 7 Section 7. 8.20 (4) of the statutes is amended to read:

AB392,20,17 8.20 (4) The Except as otherwise required under s. 11.50 (4m) for a candidate who seeks a grant from the Wisconsin election campaign fund, the number of required signatures on nomination papers for independent candidates shall be the same as the number specified in s. 8.15 (6). For independent presidential electors intending to vote for the same candidates for president and vice president, the number of required signatures shall be not less than 2,000 nor more than 4,000 electors.

AB392, s. 8 Section 8. 8.30 (2) of the statutes, as affected by 2001 Wisconsin Act 109, is repealed and recreated to read:

AB392,21,2 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).

AB392, s. 9 Section 9. 8.35 (4) (a) 1. a. and b. of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB392,21,9 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

AB392,21,13 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

AB392, s. 10 Section 10. 8.35 (4) (c) and (d) of the statutes, as affected by 2001 Wisconsin Act 109, are repealed and recreated to read:

AB392,21,25 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 in the manner provided under s. 11.21 (16), if applicable, or otherwise 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.

AB392,22,4 (d) The newly appointed candidate shall file his or her report in the manner provided under s. 11.21 (16), if applicable, or otherwise 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.

AB392, s. 11 Section 11. 11.001 (2m) of the statutes, as created by 2001 Wisconsin Act 109, is repealed and recreated to read: