LRB-1600/1
JTK&MES:kjf:rs
2009 - 2010 LEGISLATURE
February 17, 2009 - Introduced by Representatives Hintz, Hilgenberg, Smith,
Garthwaite, Benedict, Roys, Hebl, Staskunas, Turner, Parisi, Cullen,
Jorgensen, Richards, Zepnick, Pocan, Pope-Roberts, Clark, Shilling,
Hubler, Black, Berceau, Grigsby, Molepske Jr. and Kessler, cosponsored by
Senators Kreitlow, Taylor, Lehman, Erpenbach, Miller, Risser, Lassa,
Hansen, Wirch, Vinehout, Schultz and Sullivan. Referred to Committee on
Elections and Campaign Reform.
AB65,1,8
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 11.26 (1) (am), 11.26 (2) (an), 11.26 (9) (ba), 11.501 to 11.522,
520.511 (1) (r), 20.585 (1) (q), 20.585 (1) (r), 20.855 (4) (ba), 20.855 (4) (bb), 25.17
6(1) (cm) and 25.421 of the statutes;
relating to: public financing of campaigns
7for the office of justice of the supreme court, making appropriations, and
8providing 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 currently 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 from at least 1,000
separate contributors who are electors of this state in amounts of not less than $5 nor
more than $100 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 from electors of this state 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 spring primary must have an opponent who qualifies to
have his or her name appear on the ballot at the 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 may not receive 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 by more than 20 percent the amount of the
public financing benefit for the office that the candidate seeks, but may not receive
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. 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:
AB65, s. 1
1Section
1. 8.35 (4) (b) of the statutes is amended to read:
AB65,4,152
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.
AB65, s. 2
16Section
2. 11.12 (2) of the statutes is amended to read:
AB65,5,417
11.12
(2) Any No registrant, other than a candidate who receives a public
18financing benefit from the democracy trust fund, may accept an anonymous
19contribution exceeding $10
received by a campaign or committee treasurer or by an
20individual under s. 11.06 (7) may not be used or expended. The. No candidate who
1receives a public financing benefit from the democracy trust fund may accept an
2anonymous contribution exceeding $5. Any anonymous contribution
that may not
3be accepted under this subsection shall be donated to the common school fund or to
4any a charitable organization at the option of the
registrant's treasurer.
AB65, s. 3
5Section
3. 11.16 (2) of the statutes is amended to read:
AB65,5,126
11.16
(2) Limitation on cash contributions. Every Except as provided in s.
711.506 (6), every contribution of money exceeding $50 shall be made by negotiable
8instrument or evidenced by an itemized credit card receipt bearing on the face the
9name of the remitter. No treasurer may accept a contribution made in violation of
10this subsection. The treasurer shall promptly return the contribution, or donate it
11to the common school fund or to a charitable organization in the event that the donor
12cannot be identified.
AB65, s. 4
13Section
4. 11.16 (3) of the statutes is amended to read:
AB65,5,2414
11.16
(3) Form of disbursements.
Every Except as authorized under s. 11.511
15(1), every disbursement which is made by a registered individual or treasurer from
16the campaign depository account shall be made by negotiable instrument. Such
17instrument shall bear on the face the full name of the candidate, committee,
18individual or group as it appears on the registration statement filed under s. 11.05
19and where necessary, such additional words as are sufficient to clearly indicate the
20political nature of the registrant or account of the registrant. The name of a political
21party shall include the word "party". The instrument of each committee registered
22with the board and designated under s. 11.05 (3) (c) as a special interest committee
23shall bear the identification number assigned under s. 11.21 (12) on the face of the
24instrument.
AB65, s. 5
25Section
5. 11.26 (1) (a) of the statutes is amended to read:
AB65,6,2
111.26
(1) (a) Candidates for governor, lieutenant governor, secretary of state,
2state treasurer, attorney general,
or state superintendent
or justice, $10,000.
AB65, s. 6
3Section
6. 11.26 (1) (am) of the statutes is created to read:
AB65,6,44
11.26
(1) (am) Candidates for justice, $1,000.
AB65, s. 7
5Section
7. 11.26 (2) (a) of the statutes is amended to read:
AB65,6,86
11.26
(2) (a) Candidates for governor, lieutenant governor, secretary of state,
7state treasurer, attorney general,
or state superintendent
or justice, 4 percent of the
8value of the disbursement level specified in the schedule under s. 11.31 (1).
AB65, s. 8
9Section
8. 11.26 (2) (an) of the statutes is created to read:
AB65,6,1010
11.26
(2) (an) Candidates for justice, $1,000.
AB65, s. 9
11Section
9. 11.26 (9) (a) of the statutes is amended to read:
AB65,6,1712
11.26
(9) (a)
No Except as provided in par. (ba), no individual who is a candidate
13for state or local office may receive and accept more than 65 percent of the value of
14the total disbursement level determined under s. 11.31 for the office for which he or
15she is a candidate during any primary and election campaign combined from all
16committees subject to a filing requirement, including political party and legislative
17campaign committees.
AB65, s. 10
18Section
10. 11.26 (9) (b) of the statutes is amended to read:
AB65,6,2419
11.26
(9) (b)
No Except as provided in par. (ba), no individual who is a candidate
20for state or local office may receive and accept more than 45 percent of the value of
21the total disbursement level determined under s. 11.31 for the office for which he or
22she is a candidate during any primary and election campaign combined from all
23committees other than political party and legislative campaign committees subject
24to a filing requirement.
AB65, s. 11
25Section
11. 11.26 (9) (ba) of the statutes is created to read:
AB65,7,2
111.26
(9) (ba) Paragraphs (a) and (b) do not apply to a candidate who receives
2a public financing benefit from the democracy trust fund.
AB65, s. 12
3Section
12. 11.26 (13) of the statutes is amended to read:
AB65,7,64
11.26
(13) Except as provided in sub. (9), contributions received from the
5Wisconsin election campaign fund
and public financing benefits received from the
6democracy trust fund are not subject to limitation by this section.
AB65, s. 13
7Section
13. 11.31 (1) (d) of the statutes is amended to read:
AB65,7,98
11.31
(1) (d) Candidates for secretary of state, state treasurer,
justice or state
9superintendent, $215,625.
AB65, s. 14
10Section
14. 11.50 (1) (a) 1. of the statutes is amended to read:
AB65,7,1811
11.50
(1) (a) 1. With respect to a spring or general election, any individual who
12is certified under s. 7.08 (2) (a) as a candidate in the spring election for
justice or state
13superintendent, or an individual who receives at least 6% of the vote cast for all
14candidates on all ballots for any state office, except district attorney, for which the
15individual is a candidate at the September primary and who is certified under s. 7.08
16(2) (a) as a candidate for that office in the general election, or an individual who has
17been lawfully appointed and certified to replace either such individual on the ballot
18at the spring or general election; and who has qualified for a grant under sub. (2).
AB65, s. 15
19Section
15. 11.50 (3) (a) 2. of the statutes is repealed.
AB65, s. 16
20Section
16. 11.50 (3) (b) of the statutes is amended to read:
AB65,8,221
11.50
(3) (b) If a vacancy occurs in the office of state superintendent
or justice 22after August 15 in any year and an election is scheduled to fill the vacancy at the
23spring election in the following year, the state treasurer shall transfer an amount not
24exceeding 8 percent of the moneys transferred to the fund on the preceding August
2515 to the
superintendency account
for the office in which the vacancy occurs, such
1moneys to be drawn from any account within the accounts created under sub. (4) in
2the amount or amounts specified by the board.
AB65, s. 17
3Section
17. 11.501 to 11.522 of the statutes are created to read:
AB65,8,4
411.501 Definitions. In ss. 11.501 to 11.522:
AB65,8,6
5(1) "Allowable contribution" means a qualifying contribution, seed money
6contribution, or personal contribution authorized under ss. 11.502 to 11.522.
AB65,8,7
7(2) "Campaign" has the meaning given in s. 11.26 (17).
AB65,8,10
8(3) "Election campaign period" means the period beginning on the day after the
9spring primary election or the day on which a primary election would be held, if
10required, and ending on the day of the succeeding spring election.
AB65,8,16
11(4) "Eligible candidate" means a candidate for the office of justice who has an
12opponent who has qualified to have his or her name certified for placement on the
13ballot at the spring primary or election and who qualifies for a public financing
14benefit by collecting the required number of qualifying contributions, making all
15required reports and disclosures, and being certified by the board as being in
16compliance with ss. 11.502 to 11.522.
AB65,8,19
17(5) "Excess disbursement amount" means the amount of disbursements made
18by a nonparticipating candidate in excess of the public financing benefit available to
19an eligible candidate for the same office that the nonparticipating candidate seeks.
AB65,8,22
20(6) "Excess qualifying contribution amount" means the amount of qualifying
21contributions accepted by a candidate beyond the number or dollar amount of
22contributions required to qualify a candidate for a public financing benefit.
AB65,8,25
23(7) "Exploratory period" means the period that begins after the date of a spring
24election and ends on the first day of the public financing qualifying period for the next
25election for justice.
AB65,9,2
1(9) "Immediate family," when used with reference to a candidate, includes the
2candidate's spouse and children.
AB65,9,7
3(10) "Independent disbursement" means a disbursement by a person expressly
4advocating the election or defeat of a clearly identified candidate which is made
5without cooperation or consultation with a candidate, or any authorized committee
6or agent of a candidate, and which is not made in concert with, or at the request or
7suggestion of, any candidate, or any authorized committee or agent of a candidate.
AB65,9,10
8(11) "Nonparticipating candidate" means a candidate for the office of justice
9who does not apply for a public financing benefit or who is otherwise ineligible or fails
10to qualify for a public financing benefit under ss. 11.502 to 11.522.
AB65,9,12
11(12) "Personal funds" means funds contributed by a candidate or a member of
12a candidate's immediate family.
AB65,9,16
13(13) "Primary election campaign period" means the period beginning on the
14day after the last day prescribed by law for filing nomination papers for that office
15and ending on the day of the spring primary election for that office or the day on
16which the primary election would be held, if required.
AB65,9,18
17(14) "Public financing benefit" means a benefit provided to an eligible
18candidate under this section.
AB65,9,21
19(15) "Public financing qualifying period" means the period beginning on the
20first day of July of any year and ending on the day before the beginning of the primary
21election campaign period for that office.
AB65,9,25
22(16) "Qualifying contribution" means a contribution in an amount of not less
23than $5 nor more than $100 made to a candidate by an elector of this state during
24the public financing qualifying period, which is acknowledged by written receipt
25identifying the contributor.
AB65,10,6
1(17) "Seed money contribution" means a contribution in an amount of not more
2than $100 made to a candidate by an elector of this state during the exploratory
3period or the public financing qualifying period, or a contribution made to a
4candidate consisting of personal funds of that candidate in an amount not more than
5the amount authorized under s. 11.507 during the exploratory period or the public
6financing qualifying period.