LRB-1151/2
JTK&MES:jld:rs
2005 - 2006 LEGISLATURE
February 8, 2005 - Introduced by Senators Ellis, Risser, Harsdorf, Schultz, A.
Lasee, Lassa and
Cowles, cosponsored by Representatives Freese, Kaufert,
Musser, Zepnick and
Albers. Referred to Committee on Campaign Finance
Reform and Ethics.
SB46,3,2
1An Act to repeal 11.01 (12s), 11.01 (12w), 11.01 (14), 11.01 (16) (a) 3., 11.01 (17g)
2and (17r), 11.05 (2r), 11.05 (3) (o), 11.06 (1) (cm) and (dm), 11.06 (3r), 11.06 (3w),
311.06 (11) (bm), 11.20 (8) (am), 11.21 (17), 11.24 (1w), 11.26 (1m) and (1t), 11.26
4(2) (ae), 11.26 (2) (as), 11.26 (2) (av), 11.26 (2m) and (2t), 11.26 (8n) and (8r),
511.26 (9) (am), 11.26 (9m), 11.26 (10a), 11.265, 11.31 (2m), 11.385, 11.50 (1) (a)
62., 11.50 (2) (b) 6., 11.50 (2) (i), 11.50 (2) (j), 11.60 (3r), 71.07 (6s) and 71.10 (4)
7(gw);
to renumber 11.24 (2);
to amend 5.05 (1) (e), 11.05 (12) (title), 11.29 (1),
811.30 (4) and 11.50 (13);
to repeal and recreate 5.02 (13), 5.05 (2), 7.08 (2) (c)
9and (cm), 8.30 (2), 8.35 (4) (a) 1. a. and b., 8.35 (4) (c) and (d), 11.001 (2m), 11.01
10(4m), 11.01 (13), 11.05 (1), 11.05 (2), 11.05 (3) (c), 11.05 (3) (m), 11.05 (3) (r), 11.05
11(5), 11.05 (9) (title), 11.05 (9) (b), 11.05 (12) (b), 11.05 (13), 11.06 (1) (intro.), 11.06
12(1) (e), 11.06 (2), 11.06 (2m) (title) and (a), 11.06 (2m) (b) to (d), 11.06 (3) (b)
13(intro.), 11.06 (4) (b), 11.06 (5), 11.06 (7m) (a), 11.06 (7m) (b), 11.06 (7m) (c), 11.07
14(1), 11.07 (5), 11.09 (3), 11.10 (1), 11.12 (2), 11.12 (4), 11.12 (5), 11.12 (6), 11.12
1(8) and (9), 11.14 (3), 11.16 (2), 11.16 (5), 11.19 (title), 11.19 (1), 11.20 (1), 11.20
2(2), 11.20 (7), 11.20 (8) (intro.), 11.20 (8) (a), 11.20 (9), 11.20 (10) (a), 11.20 (12),
311.21 (2), 11.21 (15), 11.21 (16), 11.22 (3), 11.23 (1), 11.23 (2), 11.24 (4), 11.26 (1)
4(intro.), 11.26 (2) (intro.), 11.26 (2) (a), 11.26 (2) (am), 11.26 (3), 11.26 (4), 11.26
5(5), 11.26 (6), 11.26 (8), 11.26 (9) (a), 11.26 (9) (b), 11.26 (10), 11.26 (15), 11.26
6(17) (a), 11.31 (1) (intro.), 11.31 (1) (a) to (d), 11.31 (1) (de), 11.31 (1) (e) and (f),
711.31 (2), 11.31 (3), 11.31 (3p), 11.31 (9), 11.38 (1) (a) 2., 11.38 (6), 11.38 (8) (b),
811.50 (1) (a) 1., 11.50 (1) (a) 2m., 11.50 (1) (am), 11.50 (1) (bm) and (cm), 11.50
9(2) (a), 11.50 (2) (b) 3., 11.50 (2) (b) 4., 11.50 (2) (b) 5., 11.50 (2) (c), 11.50 (2) (f),
1011.50 (2) (g), 11.50 (2) (h), 11.50 (2s), 11.50 (2w), 11.50 (3), 11.50 (4), 11.50 (5),
1111.50 (6), 11.50 (7) (intro.), 11.50 (8), 11.50 (9), 11.50 (10m), 11.50 (11) (e), 11.50
12(14), 11.60 (4), 11.61 (1) (a), 25.42, 71.10 (3) and 806.04 (11m);
to create 7.08
13(2) (cs), 11.01 (14m), 11.01 (16) (c), 11.05 (5r), 11.065, 11.12 (2m), 11.26 (2) (ad),
1411.26 (2) (au), 11.26 (8m), 11.31 (3r), 11.50 (1) (e), 11.50 (2) (bm), 11.50 (4e), 11.50
15(10), 11.60 (3s), (3t) and (3u), 71.07 (6n) and 71.10 (4) (ds) of the statutes; and
16to affect 2001 Wisconsin Act 109, section
9115 (2v), (2w) and (2x),
2001
17Wisconsin Act 109, section
9115 (2y),
2001 Wisconsin Act 109, section
9132 (4v),
182001 Wisconsin Act 109, section
9215 (3v),
2001 Wisconsin Act 109, section
9244 19(6v),
2001 Wisconsin Act 109, section
9315 (2v) and (2w),
2001 Wisconsin Act
20109, section
9344 (2v) and
2001 Wisconsin Act 109, section
9415 (1zx);
relating
21to: campaign financing, designations for the Wisconsin election campaign fund
22by individuals filing state income tax returns, creating a nonrefundable
23individual income tax credit for contributions to the Public Integrity
24Endowment, candidate time on public broadcasting television stations and
25public access channels, statewide voter registration, staffing of the Elections
1Board, providing exemptions from emergency rule procedures, granting
2rule-making authority, and providing penalties.
Analysis by the Legislative Reference Bureau
This bill makes numerous changes in the campaign financing law. The bill also
makes changes to the income tax laws, the lobbying regulation law and the staffing
of the Elections Board.
2001 Wisconsin Act 109 made comprehensive changes to campaign finance,
ethics, lobbying regulation, income tax, public broadcasting, and cable television
laws. Included in the changes were an authorization for the Elections Board to use
a portion of the moneys in the Wisconsin election campaign fund (see below) to
provide public information regarding the purpose and effect of the fund. Most
changes made by Act 109 took effect on July 1, 2003. With the exception of provisions
requiring candidate time on public broadcasting stations and public access channels
at public expense, these provisions were made nonseverable so that if a court found
that any of the provisions were unconstitutional all of the provisions would then be
invalid. In
Wisconsin Realtors Association et al. v. Ponto et al., 299 F.Supp.2d 889
(2002), the U.S. District Court found that one provision of Act 109 relating to advance
reporting of certain independent disbursements before obligations are incurred to
make those disbursements violates the First and Fourteenth amendments. This
decision apparently precludes enforcement and administration of the Act 109
changes as of December 11, 2002. The Act 109 changes, however, currently remain
in the statutes.
This bill deletes all of the changes described above made by Act 109, including
the changes not affected by the nonseverability provision, but not including the
changes concerning public information relating to the Wisconsin election campaign
fund, and also makes other changes to campaign finance and income tax and the
staffing of the Elections Board. Unlike Act 109, the bill does not affect the code of
ethics for state and local public officials. The following is a description of the changes
made by the bill to the statutes in effect before July 1, 2003, and, in each case, a
notation as to whether the change was contained in Act 109:
Filing of campaign finance reports
Exemptions from registration and reporting
Currently, with certain limited exceptions, any individual who accepts
contributions, makes disbursements, or incurs obligations, and any committee or
group that makes or accepts contributions, makes disbursements, or incurs
obligations, in connection with one or more elections for state or local office or one or
more state or local referenda exceeding $25 cumulatively within a calendar year
must register and file reports with the appropriate filing officer or agency identifying
contributions received and disbursements made and providing certain other
information.
This bill provides that no reporting is required under current reporting
requirements for, and no registration is required solely on account of, the making of
an expenditure, other than by a candidate or personal campaign, candidate support,
or political party committee, for a mass communication which does not expressly
advocate the election, defeat, recall, or retention of a clearly identified candidate or
a particular result in a referendum. The bill, however, establishes new reporting
requirements for persons making expenditures for certain mass communications
(see below).
The bill also provides that no individual who or organization which is subject
to a registration requirement may make any contribution prior to the date of
registration. In addition, the bill provides that no registrant may accept any
contribution from any individual who or organization which is subject to a
registration requirement prior to the date of registration of that individual or
organization.
None of the above changes was included in Act 109.
Currently, a nonresident registrant need report only contributions and other
income received from sources in this state and disbursements made and obligations
incurred with respect to an election for state or local office in this state. This bill
deletes this exception.
This change was included in Act 109.
Currently, with certain exceptions, a registrant who or which is required to
register with a filing officer in this state must file regular reports identifying
contributions received and disbursements made and providing certain other
information. However, a national political party committee need not file reports for
any period covered in a report filed by the committee with the Federal Election
Commission. In addition, a state political party committee which is registered with
the Federal Election Commission and which makes contributions to candidates for
national office, as well as contributions to other state political party committees,
need not file reports for any period covered by a report filed by the committee with
the Federal Election Commission if the Elections Board receives a copy of that report
and the committee makes no contributions to any individual who or organization
which is required to register with a filing officer under Wisconsin law. This bill
deletes these exceptions to state reporting requirements.
The above changes were not included in Act 109.
Reporting thresholds
The bill also provides that an individual who accepts contributions, makes
disbursements, or incurs obligations or a group that makes or accepts contributions,
makes disbursements, or incurs obligations in connection with one or more referenda
is not subject to registration and reporting requirements until the individual or
group engages in activity exceeding $100 cumulatively within a calendar year.
In addition, the bill permits an individual or committee to claim an exemption
from reporting requirements if the individual or committee does not accept
contributions, make disbursements, or incur obligations exceeding $1,000
cumulatively within a calendar year with respect to an election for state office, and
does not accept contributions, other than contributions made by a candidate to his
or her own campaign, exceeding $100 from a single source cumulatively within a
calendar year. If an individual or committee does not accept contributions, make
disbursements, or incur obligations with respect to an election for any state office but
accepts contributions, makes disbursements, or incurs obligations independently of
any candidate with respect to an election for local office, the bill permits the
individual or committee to claim an exemption from reporting requirements if the
individual or committee does not accept contributions, make disbursements, or incur
obligations exceeding $100 cumulatively within a calendar year.
The above changes were included in Act 109.
Mass communications
Currently, individuals who accept contributions, organizations which make or
accept contributions, or individuals who or organizations which incur obligations or
make disbursements (expenditures) for the purpose of influencing an election for
state or local office are generally required to register with the appropriate filing
officer and to file financial reports with that officer, regardless of whether they act
in conjunction with or independently of any candidate who is supported or opposed.
With certain exceptions, this bill imposes reporting requirements, in addition,
upon any individual who or organization that, during the period beginning on the
30th day before 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 a similar 60-day period preceding a general, special, or
spring election and by means of a printed advertisement, commercial billboard, radio
or television advertisement, mass mailing, telephone call, or similar means, makes
any expenditure independently of a candidate for the purpose of making one or more
communications which include the name, photograph, or drawing of, or an
unambiguous reference to, a candidate for a state office other than court of appeals
judge, circuit judge, or district attorney to be filled at that election. This requirement
applies to expenditures to finance what is commonly referred to as "issue advocacy"
and to certain independent disbursements by individuals other than candidates and
organizations that are not primarily organized for a political purpose that are
exempt from reporting under current law. The reporting requirement does not apply
unless the individual or organization makes one or more expenditures for these
communications exceeding $500 cumulatively with respect to an election. In
addition, the reporting requirement does not apply to bona fide news or editorial
coverage, or to a communication made by a corporation, cooperative, or nonpolitical
voluntary association that is limited to the organization's members, shareholders, or
subscribers.
The report required under the bill must be made within 24 hours after the date
on which a communication is made (regardless of whether it has been paid for at that
time) and must include the name, address, and telephone number of the individual
or organization that makes the expenditure or expenditures, the name of each
candidate identified in each communication, a statement as to whether the
communication is intended to support or oppose that candidate (and, if so, an
identification of the candidate who is supported or opposed), the total amount or
value of the expenditure used to fund the communication, and the cumulative total
expenditures made by the individual or organization with respect to that election.
The bill permits the board to obtain a copy of any reported communication, under
certain circumstances, in order to determine whether the communication was
intended to support or oppose a candidate. Any such determination applies for
purposes of granting exemptions from disbursement limits (see below) and to
potentially enable an opposing candidate to qualify for a matching grant from the
Wisconsin election campaign fund (see below).
Act 109 contained similar but not identical provisions.
Special reporting by certain registrants
Currently, a committee making contributions or a candidate or other individual
or committee accepting contributions, making disbursements, or incurring
obligations in support of or opposition to a candidate is generally required to file a
report no later than the eighth day before a primary or election at which the
candidate seeks nomination or election to office. The report must disclose
contributions made or accepted, disbursements made, and obligations incurred
through the 14th day prior to the primary or election. Currently, if a candidate for
state office receives one or more contributions from a single contributor aggregating
$500 or more during the 14-day period preceding an election, the candidate must
report to the Elections Board the information currently required to be disclosed
pertaining to contributions received by the candidate no later than 24 hours
following receipt of any such contribution or contributions.
This bill requires each candidate at the general or a special election for a major
state office (the office of governor, lieutenant governor, attorney general, secretary
of state, state treasurer, superintendent of public instruction, justice of the supreme
court, state senator, or representative to the assembly) who does not accept a grant
from the Wisconsin election campaign fund (see below) and who makes any
disbursement after the candidate has accumulated cash in his or her campaign
depository or has made disbursements in his or her campaign exceeding a combined
total of 90 percent of the amount of the disbursement limitation for the office that the
candidate seeks, to file daily reports, by electronic mail or facsimile transmission,
with the Elections Board and with each candidate whose name appears on the ballot
for the office in connection with which the disbursement is made. The reports must
be filed no later than 24 hours after the date on which each disbursement is made,
and must specify the amount of the disbursement. The reports must be filed during
the period beginning with the date on which a disbursement is made or the 7th day
after the applicable primary election or the date on which a primary would be held,
if required, whichever is later, and ending with date of the election at which the
candidate seeks office.
The bill also creates additional reporting requirements applicable to special
interest committees, other than conduits, that make disbursements independently
of a candidate for the purpose of advocating the election or defeat of a clearly
identified candidate for a major state office at the general or a special election or any
applicable primary election during the period beginning on the 30th day before 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
a similar 60-day period preceding a general, special, or spring election. These
additional reporting requirements do not apply to communications that are made by
a corporation, cooperative, or nonpolitical voluntary association and that are limited
to the corporation's, cooperative's, or association's members, shareholders, or
subscribers. Under the bill, special interest committees must file these additional
reports within 24 hours after a reportable transaction occurs. The reports must
include the name of each candidate who is supported or opposed by each
disbursement and the total amount of disbursements made for such a purpose in
support of or opposition to that candidate on the date on which the disbursement is
made and the cumulative total of such disbursements made by the committee with
respect to that election.
Act 109 established similar requirements, but required certain reporting to
occur before a transaction was permitted to occur.
Timeliness in filing reports
Currently, where a requirement is imposed under the campaign finance law for
filing of a report by a specified date, the requirement may be satisfied by depositing
the report with the U.S. Postal Service no later than the date provided by law for
receipt of the report.
This bill permits satisfaction of the filing requirement only by delivering a
report to the appropriate filing officer or agency on or before the date provided by law
for receipt of the report or by depositing the report with the U.S. postal service no
later than the third day before that date.
This change was included in Act 109.
Disbursement limitations and independent disbursements
Under current law, disbursement (expenditure) levels are specified for
candidates for various state and local offices. These levels become a binding
limitation upon any candidate for state office who accepts a state grant from the
Wisconsin election campaign fund or who agrees to be bound by the limitation, unless
the candidate is opposed by a major opponent who could have qualified for a grant
but declines to accept one. A candidate for state office who accepts a grant from the
Wisconsin election campaign fund and who agrees to be bound by the disbursement
limitation applicable to the office which the candidate seeks may receive a grant
equal to 45 percent of that disbursement limitation, less contributions accepted by
the candidate from committees other than political party and legislative campaign
committees, if there are sufficient moneys in the fund to finance the full amount of
grants for which candidates qualify.
Current law also imposes registration and financial reporting requirements on
committees and individuals making disbursements independently of a candidate in
support of or in opposition to a candidate for a state or local office. One requirement
is the obligation of the committee or individual to file reports with the appropriate
filing officer within 24 hours of making such a disbursement, if the disbursement is
made less than 15 days before a primary or election and if the cumulative amount
of such disbursements exceeds $20.
This bill does the following:
1. It revises the current disbursement levels applicable to candidates for the
offices shown below as follows:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
Act 109 also increased disbursement levels, but in some cases by different
amounts.
2. It creates a biennial cost-of-living adjustment that causes the statutory
disbursement levels to be adjusted biennially, beginning in 2006, in accordance with
a formula tied to the "consumer price index" determined by the U.S. Department of
Labor.
This change was included in Act 109.
3. It provides that the current provision requiring reports of cumulative
independent disbursements exceeding $20 made later than 15 days prior to a
primary or election does not apply to a committee or individual that is required to file
a special report concerning the same disbursement (see above), nor to a committee
or individual that is subject to an electronic filing requirement (see above).
Act 109 also required reporting of obligations, but subject to a different
threshold.
4. It increases the disbursement limitation of any candidate who accepts a
public grant by certain amounts for which matching grants from the Wisconsin
election campaign fund are potentially available (see grant eligibility requirements
and amounts, below). Under the bill, the disbursement limitation of the candidate
accepting the grant is increased by a total amount equal to: 1) the amount or value
of disbursements made by an opponent in excess of the disbursement limitation; 2)
the amount or value of independent disbursements made to expressly advocate the
defeat of the candidate or the election of his or her opponents by special interest
committees during election campaign periods, as reported to the Elections Board;
and 3) the amount or value of expenditures made by individuals or organizations for
mass communications in opposition to the candidate or in support of his or her
opponent during election campaign periods, as reported to the Elections Board.
Act 109 made similar but not identical changes.
5. It repeals the procedure by which a candidate who would not otherwise be
subject to statutory disbursement limitations may voluntarily agree to comply with
these limitations.
Act 109 did not include this change.
6. It repeals the exemption from disbursement and self-contribution
limitations that currently applies to any candidate who accepts a grant from the
Wisconsin election campaign fund and who is opposed by a major opponent who could
have qualified for a grant but declines to accept one.
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 $600,000.
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 percent 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
percent of the disbursement level or limitation for the office that the candidate seeks.
This bill provides that the contributions received by a candidate for state or local
office from all committees other than political party committees, when combined
with any nonsupplemental grant received from the Wisconsin election campaign
fund, may not exceed 35 percent of the disbursement level or limitation for the office
that the candidate seeks. Under the bill, a candidate who qualifies to receive a
supplemental grant from the Wisconsin election campaign fund (see below) may
exceed aggregate committee contribution limitations by the amount of the
supplemental grant.
Act 109 did not include this change, but created other exceptions to this
limitation.
Under current law, a candidate who accepts a grant from the Wisconsin election
campaign fund may not make contributions to his or her own campaign in an amount
or value greater than 200 percent of the contribution limitation that applies to
individuals making contributions to his or her campaign. Under the bill, if a
candidate's disbursement limitation is increased as a result of disbursements made
by an opposing candidate or independent disbursements or expenditures for mass
communications made by others, this self-contribution limitation is increased by an
amount equal to the ratio that the contribution limitation otherwise applicable to the
candidate bears to the disbursement limitation otherwise applicable to the
candidate, multiplied by the amount of the increased disbursement limitation
authorized under the bill for that candidate.
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 incumbent partisan state officials for the
purpose of promoting their nomination or reelection to their offices during the period
from the date of introduction of the executive budget bill through the date of
enactment of the biennial budget act. The prohibition does not apply to contributions
made to an incumbent who is subject to a recall election beginning on the date on
which a petitioner registers an intent to circulate a petition for a recall election
against the incumbent and ending on the date of the recall election, except that if the
circulation period expires without offering of the recall petition for filing, the filing
officer determines not to file the petition, or the incumbent resigns, the period ends
on the date of that event.
Act 109 included a similar but not identical provision.
2. It prohibits any committee from making a contribution to any special interest
committee. The prohibition does not apply to any contribution made by a committee
to another committee if the contribution is made between statewide committees of
labor organizations or trade associations and their affiliated local committees.
Act 109 contained a similar but not identical provision.
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.
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.