April 27, 2007 - Introduced by Senators Kreitlow, Coggs, Robson, Schultz,
Erpenbach, Miller, Risser, Lehman, Lassa, Jauch, Sullivan, Hansen,
Vinehout and Wirch, cosponsored by Representatives Hintz, Musser, Pocan,
Kreuser, Boyle, Sheridan, Travis, Mason, Hraychuck, Cullen, Shilling,
Benedict, Jorgensen, Schneider, Sinicki and Berceau. Referred to
Committee on Campaign Finance Reform, Rural Issues and Information
Technology.
SB171,1,8
1An Act to repeal 11.50 (3) (a) 2.;
to amend 8.35 (4) (b), 11.12 (2), 11.16 (2), 11.16
2(3), 11.26 (1) (a), 11.26 (2) (a), 11.26 (9) (a), 11.26 (9) (b), 11.26 (13), 11.31 (1) (d),
311.50 (1) (a) 1., 11.50 (3) (b), 11.60 (4), 11.61 (2), 20.855 (4) (b) and 71.10 (3) (a);
4and
to create 11.01 (14m), 11.26 (1) (am), 11.26 (2) (an), 11.26 (9) (ba), 11.501
5to 11.522, 20.511 (1) (r), 20.585 (1) (q), 20.585 (1) (r), 20.855 (4) (ba), 20.855 (4)
6(bb), 25.17 (1) (cm) and 25.421 of the statutes;
relating to: public financing of
7campaigns for the office of justice of the supreme court, making appropriations,
8and providing penalties.
Analysis by the Legislative Reference Bureau
This bill makes numerous changes in the campaign finance law affecting
campaigns for the office of justice of the supreme court. The bill limits the application
of the Wisconsin election campaign fund, under which eligible candidates for certain
state offices (including justice of the supreme court) may receive public grants from
state general purpose revenues derived from designations made by individuals filing
state income tax returns, to state offices other than the office of justice. To finance
elections for the office of justice of the supreme court, the bill creates a democracy
trust fund, under which eligible candidates for this office may receive public grants
derived from general purpose revenues.
Under the bill, a candidate for the office of justice of the supreme court may
qualify for public financing from the democracy trust fund to finance a campaign in
a primary or election by receiving qualifying contributions of at least $5 but not more
than $100 each made by an elector of this state in an aggregate amount of at least
$5,000 but not more than $15,000. A candidate who accepts public financing may
also accept "seed money" contributions in amounts of $100 or less, subject to
aggregate limitations, and may contribute personal funds in specified amounts
during specified periods. In order to qualify for a public financing benefit for the
primary, a candidate at the primary must have an opponent who qualifies to have
his or her name appear on the ballot at the spring primary, and in order to qualify
for a public financing benefit for the spring election, a candidate at the election must
have an opponent who qualifies to have his or her name appear on the ballot at the
election. A candidate who accepts a public financing benefit may not accept any
contributions other than qualifying and seed money contributions and contributions
from personal funds within the limitations permitted. Public financing benefits for
eligible candidates are $100,000 in the spring primary and $300,000 in the spring
election. The benefits are subject to a biennial cost of living adjustment. A candidate
who accepts more than a specified amount of qualifying or seed money contributions
has the excess deducted from his or her public financing benefit. In addition, if a
candidate's opponent declines to accept a public financing benefit and makes
expenditures in a total amount that exceeds by more than 5 percent the amount
permitted for a candidate who accepts a public financing benefit, the candidate who
accepts a public financing benefit receives additional funding equivalent to the
excess expenditures made by his or her opponent, but not more than three times the
amount of the public financing benefit for the office that the candidate seeks. A
candidate also receives additional public financing equivalent to any independent
expenditures made against the candidate or in support of his or her opponents if
those expenditures exceed 20 percent of the amount of the public financing benefit
for the office that the candidate seeks (but not more than three times the amount of
that benefit).
The bill provides that if a candidate makes disbursements that exceed the total
amount of the public financing benefit allocated to the candidate and the total
qualifying and seed money contributions lawfully accepted by the candidate, the
candidate is subject to a forfeiture (civil penalty) of not more than ten times the
amount by which his or her disbursements exceed the allocation. In addition, the bill
provides that a candidate who accepts contributions in excess of any limitation
imposed under the bill is subject to a forfeiture of not more than ten times the amount
by which the contributions exceed the applicable limitation. The bill also provides
that if any candidate or agent of a candidate knowingly accepts more contributions
than the candidate is entitled to receive, or makes disbursements exceeding the total
amount of the public financing benefit received by the candidate and the qualifying
and seed money contributions lawfully received by the candidate, the candidate or
agent may be fined not more than $25,000 or imprisoned for not more than ten years,
or both. Under the bill, any person who, in connection with the receipt or
disbursement of a public financing benefit, knowingly provides false information to
the Government Accountability Board, or knowingly conceals or withholds
information from the board, is subject to the same penalty.
Currently, a candidate for the office of justice of the supreme court may qualify
to receive a grant from the Wisconsin election campaign fund for use in an election
campaign only (no funding is provided for primary campaigns). In order to qualify
for a grant, a candidate must qualify to have his or her name appear on the spring
election ballot and must have an opponent who qualifies to have his or her name
appear on that ballot. The maximum amount of a grant that a candidate may receive
is $97,031. This amount is not subject to any cost of living adjustment. In addition,
this amount is reduced by the total amount of contributions received by a candidate
from special interest committees and this amount may not be fully funded in a
particular year if there are not sufficient moneys in the Wisconsin election campaign
fund to provide full financing for all qualifying candidates. A candidate must agree
to abide by spending and self-contribution limits in order to receive a grant, but this
agreement does not apply if the candidate has an opponent who could have qualified
for a grant but declines to do so and declines to file an affidavit of voluntary
compliance with spending and self-contribution limits.
Currently, individuals and committees making political contributions to
candidates for the office of justice of the supreme court are subject to limitations on
the amount or value of any contribution or contributions that may be made
cumulatively to any candidate in a campaign. The limitations are $10,000 in the case
of an individual making a contribution to a candidate and $8,625 in the case of a
committee making a contribution to a candidate. This bill replaces these limitations
with a contribution limitation of $1,000 applicable to an individual or committee
making any contribution or contributions cumulatively during a campaign period to
any candidate for the office of justice of the supreme court who is eligible to qualify
for a public financing benefit but who declines to accept one.
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. The designation
does not increase an individual's tax liability nor reduce an individual's refund. This
bill increases the amount of the individual income tax checkoff for the Wisconsin
election campaign fund from $1 to $3, 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 $3 checkoff. Under the bill, $2 of each $3 designation is deposited into the
democracy trust fund, and the remaining $1 is deposited into the Wisconsin election
campaign fund, as currently provided. If the total designations do not generate
sufficient general purpose revenues to fully fund the costs of public grants and
administration of the democracy trust fund, the bill appropriates additional general
purpose revenues to finance those costs.
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:
SB171, s. 1
1Section
1. 8.35 (4) (b) of the statutes is amended to read:
SB171,4,152
8.35
(4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys
3received by a candidate from the Wisconsin election campaign fund shall be
4immediately transferred to any candidate who is appointed to replace such
5candidate, upon filing of a proper application therefor under s. 11.50 (2). If there is
6no candidate appointed or if no proper application is filed within 7 days of the date
7on which the vacancy occurs, such moneys shall revert to the state as provided in s.
811.50 (8).
Notwithstanding par. (a), any unspent and unencumbered moneys
9received by a candidate from the democracy trust fund shall be immediately
10transferred to any candidate who is appointed to replace that candidate upon filing
11of a proper application therefor under s. 11.502 (1). For purposes of qualification,
12contributions received and disbursements made by the former candidate are
13considered to have been received or made by the replacement candidate. If there is
14no candidate appointed or if no proper application is filed within 7 days of the date
15on which a vacancy occurs, the moneys shall revert to the state.
SB171, s. 2
16Section
2. 11.01 (14m) of the statutes is created to read:
SB171,4,1917
11.01
(14m) "Partisan state office" means the office of governor, lieutenant
18governor, secretary of state, state treasurer, attorney general, state senator, state
19representative to the assembly, or district attorney.
SB171, s. 3
20Section
3. 11.12 (2) of the statutes is amended to read:
SB171,5,8
111.12
(2) Any No registrant, except a candidate who receives a public financing
2benefit from the democracy trust fund, may accept an anonymous contribution
3exceeding $10
received by a campaign or committee treasurer or by an individual
4under s. 11.06 (7) may not be used or expended. The. No candidate who receives a
5public financing benefit from the democracy trust fund may accept an anonymous
6contribution exceeding $5. Any anonymous contribution
that may not be accepted
7under this subsection shall be donated to the common school fund or to
any a 8charitable organization at the option of the
registrant's treasurer.
SB171, s. 4
9Section
4. 11.16 (2) of the statutes is amended to read:
SB171,5,1610
11.16
(2) Limitation on cash contributions. Every Except as provided in s.
1111.506 (6), every contribution of money exceeding $50 shall be made by negotiable
12instrument or evidenced by an itemized credit card receipt bearing on the face the
13name of the remitter. No treasurer may accept a contribution made in violation of
14this subsection. The treasurer shall promptly return the contribution, or donate it
15to the common school fund or to a charitable organization in the event that the donor
16cannot be identified.
SB171, s. 5
17Section
5. 11.16 (3) of the statutes is amended to read:
SB171,6,318
11.16
(3) Form of disbursements.
Every Except as authorized under s. 11.511
19(1), every disbursement which is made by a registered individual or treasurer from
20the campaign depository account shall be made by negotiable instrument. Such
21instrument shall bear on the face the full name of the candidate, committee,
22individual or group as it appears on the registration statement filed under s. 11.05
23and where necessary, such additional words as are sufficient to clearly indicate the
24political nature of the registrant or account of the registrant. The name of a political
25party shall include the word "party". The instrument of each committee registered
1with the board and designated under s. 11.05 (3) (c) as a special interest committee
2shall bear the identification number assigned under s. 11.21 (12) on the face of the
3instrument.
SB171, s. 6
4Section
6. 11.26 (1) (a) of the statutes is amended to read:
SB171,6,65
11.26
(1) (a) Candidates for governor, lieutenant governor, secretary of state,
6state treasurer, attorney general,
or state superintendent
or justice, $10,000.
SB171, s. 7
7Section
7. 11.26 (1) (am) of the statutes is created to read:
SB171,6,88
11.26
(1) (am) Candidates for justice, $1,000.
SB171, s. 8
9Section
8. 11.26 (2) (a) of the statutes is amended to read:
SB171,6,1210
11.26
(2) (a) Candidates for governor, lieutenant governor, secretary of state,
11state treasurer, attorney general,
or state superintendent
or justice, 4 percent of the
12value of the disbursement level specified in the schedule under s. 11.31 (1).
SB171, s. 9
13Section
9. 11.26 (2) (an) of the statutes is created to read:
SB171,6,1414
11.26
(2) (an) Candidates for justice, $1,000.
SB171, s. 10
15Section
10. 11.26 (9) (a) of the statutes is amended to read:
SB171,6,2116
11.26
(9) (a)
No Except as provided in par. (ba), no individual who is a candidate
17for state or local office may receive and accept more than 65 percent of the value of
18the total disbursement level determined under s. 11.31 for the office for which he or
19she is a candidate during any primary and election campaign combined from all
20committees subject to a filing requirement, including political party and legislative
21campaign committees.
SB171, s. 11
22Section
11. 11.26 (9) (b) of the statutes is amended to read:
SB171,7,323
11.26
(9) (b)
No Except as provided in par. (ba), no individual who is a candidate
24for state or local office may receive and accept more than 45 percent of the value of
25the total disbursement level determined under s. 11.31 for the office for which he or
1she is a candidate during any primary and election campaign combined from all
2committees other than political party and legislative campaign committees subject
3to a filing requirement.
SB171, s. 12
4Section
12. 11.26 (9) (ba) of the statutes is created to read:
SB171,7,65
11.26
(9) (ba) Paragraphs (a) and (b) do not apply to a candidate who receives
6a public financing benefit from the democracy trust fund.
SB171, s. 13
7Section
13. 11.26 (13) of the statutes is amended to read:
SB171,7,108
11.26
(13) Except as provided in sub. (9), contributions received from the
9Wisconsin election campaign fund
and public financing benefits received from the
10democracy trust fund are not subject to limitation by this section.
SB171, s. 14
11Section
14. 11.31 (1) (d) of the statutes is amended to read:
SB171,7,1312
11.31
(1) (d) Candidates for secretary of state, state treasurer,
justice or state
13superintendent, $215,625.
SB171, s. 15
14Section
15. 11.50 (1) (a) 1. of the statutes is amended to read:
SB171,7,2215
11.50
(1) (a) 1. With respect to a spring or general election, any individual who
16is certified under s. 7.08 (2) (a) as a candidate in the spring election for
justice or state
17superintendent, or an individual who receives at least 6% of the vote cast for all
18candidates on all ballots for any state office, except district attorney, for which the
19individual is a candidate at the September primary and who is certified under s. 7.08
20(2) (a) as a candidate for that office in the general election, or an individual who has
21been lawfully appointed and certified to replace either such individual on the ballot
22at the spring or general election; and who has qualified for a grant under sub. (2).
SB171, s. 16
23Section
16. 11.50 (3) (a) 2. of the statutes is repealed.
SB171, s. 17
24Section
17. 11.50 (3) (b) of the statutes is amended to read:
SB171,8,7
111.50
(3) (b) If a vacancy occurs in the office of state superintendent
or justice 2after August 15 in any year and an election is scheduled to fill the vacancy at the
3spring election in the following year, the state treasurer shall transfer an amount not
4exceeding 8 percent of the moneys transferred to the fund on the preceding August
515 to the
superintendency account
for the office in which the vacancy occurs, such
6moneys to be drawn from any account within the accounts created under sub. (4) in
7the amount or amounts specified by the board.
SB171, s. 18
8Section
18. 11.501 to 11.522 of the statutes are created to read:
SB171,8,9
911.501 Definitions. In ss. 11.501 to 11.522:
SB171,8,11
10(1) "Allowable contribution" means a qualifying contribution, seed money
11contribution, or personal contribution authorized under ss. 11.502 to 11.522.
SB171,8,12
12(2) "Campaign" has the meaning given in s. 11.26 (17).
SB171,8,15
13(3) "Election campaign period" means the period beginning on the day after the
14spring primary election or the day on which a primary election would be held, if
15required, and ending on the day of the succeeding spring election.
SB171,8,21
16(4) "Eligible candidate" means a candidate for the office of justice who has an
17opponent who has qualified to have his or her name certified for placement on the
18ballot at the spring primary or election and who qualifies for public financing by
19collecting the required number of qualifying contributions, making all required
20reports and disclosures, and being certified by the board as being in compliance with
21ss. 11.502 to 11.522.
SB171,8,24
22(5) "Excess disbursement amount" means the amount of disbursements made
23by a nonparticipating candidate in excess of the public financing benefit available to
24an eligible candidate for the same office that the nonparticipating candidate seeks.
SB171,9,3
1(6) "Excess qualifying contribution amount" means the amount of qualifying
2contributions accepted by a candidate beyond the number or dollar amount of
3contributions required to qualify a candidate for a public financing benefit.
SB171,9,6
4(7) "Exploratory period" means the period that begins after the date of a spring
5election and ends on the first day of the public financing qualifying period for the next
6election for justice.
SB171,9,8
7(9) "Immediate family," when used with reference to a candidate, includes the
8candidate's spouse and children.
SB171,9,13
9(10) "Independent disbursement" means a disbursement by a person expressly
10advocating the election or defeat of a clearly identified candidate which is made
11without cooperation or consultation with a candidate, or any authorized committee
12or agent of a candidate, and which is not made in concert with, or at the request or
13suggestion of, any candidate, or any authorized committee or agent of a candidate.
SB171,9,16
14(11) "Nonparticipating candidate" means a candidate for the office of justice
15who does not apply for a public financing benefit or who is otherwise ineligible or fails
16to qualify for a public financing benefit under ss. 11.502 to 11.522.
SB171,9,18
17(12) "Personal funds" means funds contributed by a candidate or a member of
18a candidate's immediate family.
SB171,9,22
19(13) "Primary election campaign period" means the period beginning on the
20day after the last day prescribed by law for filing nomination papers for that office
21and ending on the day of the spring primary election for that office or the day on
22which the primary election would be held, if required.
SB171,9,25
23(14) "Public financing qualifying period" means the period beginning on the
24first day of July of any year and ending on the day before the beginning of the primary
25election campaign period for that office.
SB171,10,3
1(15) "Qualifying contribution" means a contribution made to a candidate by an
2elector of this state during the public financing qualifying period, which is
3acknowledged by written receipt identifying the contributor.
SB171,10,9
4(16) "Seed money contribution" means a contribution in an amount of not more
5than $100 made to a candidate by an elector of the jurisdiction or district in which
6the candidate seeks office during the exploratory period or the public financing
7qualifying period, or a contribution made to a candidate consisting of personal funds
8of that candidate in an amount not more than the amount authorized under s. 11.507
9during the exploratory period or the public financing qualifying period.
SB171,10,18
1011.502 Qualification; certification.
(1) Before a candidate for justice in the
11primary election may be certified as an eligible candidate to receive a public
12financing benefit for the primary election campaign period, the candidate shall apply
13to the board for a public financing benefit and file a sworn statement that the
14candidate has complied and will comply with all requirements of this section and ss.
1511.503 to 11.522 throughout the applicable campaign, which includes the primary
16and election for that office. A candidate shall file the application and statement no
17later than the beginning of the primary election campaign period for the office that
18the candidate seeks.
SB171,10,23
19(2) A candidate shall be certified by the board as an eligible candidate for
20receipt of public financing for a primary election if the candidate complies with sub.
21(1) and receives at least 1,000 qualifying contributions in amounts equal to not less
22than $5 nor more than $100 and in an aggregate amount of not less than $5,000 nor
23more than $15,000 before the close of the public financing qualifying period.
SB171,11,3
1(3) The board shall verify a candidate's compliance with the requirements of
2sub. (2) by such verification and sampling techniques as the board considers
3appropriate.
SB171,11,4
4(4) Each candidate shall:
SB171,11,65
(a) Acknowledge each qualifying contribution by a receipt to the contributor
6which contains the contributor's name and home address.
SB171,11,107
(b) No later than the 15th or the last day of the month which immediately
8follows the date of receipt of a qualifying contribution, whichever comes first, file a
9copy of the receipt under par. (a) with the board, except that during July, August, and
10September a copy need only be filed on the last day of the month.
SB171,11,12
11(5) A qualifying contribution may be utilized only for the purpose of making
12a disbursement authorized by law.
SB171,11,20
1311.503 Time of application. (1) Before a candidate may be certified as
14eligible for receipt of public financing for a spring election, the candidate shall apply
15to the board and file a sworn statement that the candidate has fulfilled all the
16requirements of ss. 11.502 to 11.522 during the primary election campaign period
17and will comply with such requirements during the election campaign period.
18Except as authorized in s. 8.35 (4) (b), the application shall be filed no later than the
197th day after the date of the spring primary election or the day on which the primary
20election would be held if a primary were required.
SB171,11,23
21(2) The board shall certify a candidate as an eligible candidate for receipt of
22public financing for a spring election if the candidate complies with sub. (1) and the
23candidate was an eligible candidate during the primary election campaign period.
SB171,12,6
2411.505 Agreement by candidate. An eligible candidate who accepts a public
25financing benefit under ss. 11.502 to 11.522 during the primary election campaign
1period shall agree to comply with all requirements of ss. 11.502 to 11.522 throughout
2the election campaign period during the same campaign as a precondition to receipt
3of public financing. An eligible candidate who accepts a public financing benefit
4during a primary election campaign period may not elect to accept private
5contributions in violation of ss. 11.502 to 11.522 during the corresponding election
6campaign period.
SB171,12,10
711.506 Requirements imposed upon candidates. (1) An eligible
8candidate may not accept private contributions other than seed money contributions
9and qualifying contributions that the candidate accepts during the exploratory
10period and the public financing qualifying period.
SB171,12,18
11(2) In addition to reports required to be filed under ss. 11.12 (5) and 11.20, a
12candidate who receives a public financing benefit shall furnish complete financial
13records, including records of seed money contributions, qualifying contributions, and
14disbursements, to the board on the 15th or the last day of the month that
15immediately follows the receipt of the contribution or the making of the
16disbursement, whichever comes first, except that during July, August, and
17September records need only be furnished on the last day of the month. Each such
18candidate shall cooperate with any audit or examination by the board.
SB171,13,2
19(3) In addition to adhering to requirements imposed under ss. 11.06 (5) and
2011.12 (3), a candidate who receives a public financing benefit shall maintain records
21of all contributions received by the candidate of more than $5 but less than $50,
22including seed money contributions and qualifying contributions, which shall
23contain the full name of the contributor and the contributor's full home address. In
24addition, if a contributor's aggregate contributions to any candidate exceed $50 for
25any campaign, the candidate shall also maintain a record of the contributor's
1principal occupation and the name and business address of the contributor's place
2of employment.
SB171,13,4
3(4) The failure to record or provide the information specified in sub. (3)
4disqualifies a contribution from counting as a qualifying contribution.
SB171,13,7
5(5) No eligible candidate and no person acting on a candidate's behalf may
6deposit any contribution that is not recorded in accordance with sub. (3) in a
7candidate's campaign depository account.
SB171,13,11
8(6) No eligible candidate may accept more than $25 in cash from any
9contributor and no such candidate may accept cash from all sources in a total amount
10greater than one-tenth of 1 percent of the public financing benefit for the office that
11the candidate seeks or $500, whichever is greater.
SB171,13,14
1211.507 Personal funds of candidates.
(1) The personal funds of a candidate
13contributed as seed money contributions may not exceed an aggregate amount of
14$5,000.
SB171,13,16
15(2) No eligible candidate may make any disbursement derived from personal
16funds after the close of the public financing qualifying period.
SB171,13,23
1711.508 Seed money contributions. (1) An eligible candidate may accept
18seed money contributions from any individual or committee prior to the end of the
19public financing qualifying period, provided the total contributions received from one
20contributor, except personal funds and qualifying contributions otherwise permitted
21under ss. 11.502 to 11.522, do not exceed $100, and the aggregate contributions,
22including personal funds, but not including qualifying contributions, do not exceed
23$5,000.
SB171,14,3
1(2) An eligible candidate may make disbursements derived from seed money
2contributions only during the exploratory period and the public financing qualifying
3period.