AB543: Bill Text

LRB-2423/1

JTK:cjs/kjf/sac:rs

2013 - 2014 LEGISLATURE

2013 Assembly BILL 543

December 9, 2013 - Introduced by Representatives Hebl, Kolste, Kahl, Sargent, Mason, Wright, C. Taylor, Doyle, Shankland, Bernard Schaber, Berceau, Pope, Ringhand, Clark, Hintz, Ohnstad, Wachs, Goyke, Pasch, Genrich and Young, cosponsored by Senators Miller, Schultz, Lassa, Vinehout, Hansen, Carpenter, Risser, T. Cullen, Harris, C. Larson and Lehman. Referred to Committee on Campaigns and Elections.

AB543,1,6 An Act to amend 11.12 (2), 11.16 (2), 11.16 (3), 11.26 (1) (a), 11.26 (2) (a), 11.26 (9), 11.31 (1) (d), 11.60 (4) and 11.61 (2); and to create 8.35 (4) (b), 11.26 (1) (am), 11.26 (2) (am), 11.26 (13), 11.501 to 11.522, 20.511 (1) (r), 20.585 (1) (q), 20.585 (1) (r), 20.855 (4) (ba), 20.855 (4) (bb), 25.17 (1) (cm), 25.421 and 71.10 (3) of the statutes; relating to: public financing of campaigns for the office of justice of the supreme court, making appropriations, and providing penalties.

Analysis by the Legislative Reference Bureau

This bill creates a democracy trust fund under which eligible candidates for the office of justice of the supreme court may receive public grants derived from general purpose revenues to finance their campaigns.

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.

The bill imposes a limitation on disbursements (expenditures) by a candidate who accepts a public financing benefit that equals the total public financing benefit allocated to the candidate and the total qualifying and seed money contributions lawfully accepted by the candidate. The bill provides that if a candidate makes disbursements that exceed the total permitted under the bill, 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, no public financing is available to finance the campaigns of candidates for the office of justice of the supreme court.

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 the bill, public financing benefits are 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 $2 of general purpose revenue be transferred to the democracy trust fund. Individuals filing a joint return may separately choose whether to direct that the $2 transfer be made. The designation does not increase an individual's tax liability nor reduce an individual's refund. 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:

AB543,1 Section 1. 8.35 (4) (b) of the statutes is created to read:

AB543,3,9 8.35 (4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the democracy trust fund shall be immediately transferred to any candidate who is appointed to replace that candidate upon filing of a proper application therefor under s. 11.502 (1). For purposes of qualification, contributions received and disbursements made by the former candidate are considered to have been received or made by the replacement candidate. If there is no candidate appointed or if no proper application is filed within 7 days of the date on which a vacancy occurs, the moneys shall revert to the state.

AB543,2 Section 2. 11.12 (2) of the statutes is amended to read:

AB543,4,2 11.12 (2) No registrant, other than a candidate who receives a public financing benefit from the democracy trust fund, may accept an anonymous contribution exceeding $10. No candidate who receives a public financing benefit from the democracy trust fund may accept an anonymous contribution exceeding $5. Any anonymous contribution exceeding $10 received by a campaign or committee treasurer or by an individual under s. 11.06 (7) that may not be accepted under this subsection may not be used or expended. The contribution shall be donated to the common school fund or to any charitable organization at the option of the registrant's treasurer.

AB543,3 Section 3. 11.16 (2) of the statutes is amended to read:

AB543,4,10 11.16 (2) Limitation on cash contributions. Every Except as provided in s. 11.506 (6), every contribution of money exceeding $50 shall be made by negotiable instrument or evidenced by an itemized credit card receipt bearing on the face the name of the remitter. No treasurer may accept a contribution made in violation of this subsection. The treasurer shall promptly return the contribution, or donate it to the common school fund or to a charitable organization in the event that the donor cannot be identified.

AB543,4 Section 4. 11.16 (3) of the statutes is amended to read:

AB543,4,22 11.16 (3) Form of disbursements. Every Except as authorized under s. 11.511 (1), every disbursement which is made by a registered individual or treasurer from the campaign depository account shall be made by negotiable instrument. Such instrument shall bear on the face the full name of the candidate, committee, individual or group as it appears on the registration statement filed under s. 11.05 and where necessary, such additional words as are sufficient to clearly indicate the political nature of the registrant or account of the registrant. The name of a political party shall include the word "party". The instrument of each committee registered with the board and designated under s. 11.05 (3) (c) as a special interest committee shall bear the identification number assigned under s. 11.21 (12) on the face of the instrument.

AB543,5 Section 5. 11.26 (1) (a) of the statutes is amended to read:

AB543,4,25 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, $10,000.

AB543,6 Section 6. 11.26 (1) (am) of the statutes is created to read:

AB543,5,2 11.26 (1) (am) Candidates for justice, $1,000.

AB543,7 Section 7. 11.26 (2) (a) of the statutes is amended to read:

AB543,5,6 11.26 (2) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, 4 percent of the value of the disbursement level specified in the schedule under s. 11.31 (1).

AB543,8 Section 8. 11.26 (2) (am) of the statutes is created to read:

AB543,5,8 11.26 (2) (am) Candidates for justice, $1,000.

AB543,9 Section 9. 11.26 (9) of the statutes is amended to read:

AB543,5,14 11.26 (9) (a) No individual who is a candidate for state or local office may receive and accept more than 65 percent of the value of the total disbursement level determined under s. 11.31 or 11.511 (7) for the office for which he or she is a candidate during any primary and election campaign combined from all committees subject to a filing requirement, including political party and legislative campaign committees.

AB543,5,19 (b) No individual who is a candidate for state or local office may receive and accept more than 45 percent of the value of the total disbursement level determined under s. 11.31 or 11.511 (7) for the office for which he or she is a candidate during any primary and election campaign combined from all committees other than political party and legislative campaign committees subject to a filing requirement.

AB543,10 Section 10. 11.26 (13) of the statutes is created to read:

AB543,5,22 11.26 (13) Public financing benefits received from the democracy trust fund are not subject to limitation by this section.

AB543,11 Section 11. 11.31 (1) (d) of the statutes is amended to read:

AB543,5,25 11.31 (1) (d) Candidates for secretary of state, state treasurer, state superintendent, or justice $215,625.

AB543,12 Section 12. 11.501 to 11.522 of the statutes are created to read:

AB543,6,2 11.501 Definitions. In ss. 11.501 to 11.522:

AB543,6,4 (1) "Allowable contribution" means a qualifying contribution, seed money contribution, or personal contribution authorized under ss. 11.502 to 11.522.

AB543,6,5 (2) "Campaign" has the meaning given in s. 11.26 (17).

AB543,6,8 (3) "Election campaign period" means the period beginning on the day after the spring primary election or the day on which a primary election would be held, if required, and ending on the day of the succeeding spring election.

AB543,6,14 (4) "Eligible candidate" means a candidate for the office of justice who has an opponent, who has qualified to have his or her name certified for placement on the ballot at the spring primary or election, and who qualifies for a public financing benefit by collecting the required number of qualifying contributions, making all required reports and disclosures, and being certified by the board as being in compliance with ss. 11.502 to 11.522.

AB543,6,17 (5) "Excess disbursement amount" means the amount of disbursements made by a nonparticipating candidate in excess of the public financing benefit available to an eligible candidate for the same office that the nonparticipating candidate seeks.

AB543,6,20 (6) "Excess qualifying contribution amount" means the amount of qualifying contributions accepted by a candidate beyond the number or dollar amount of contributions required to qualify a candidate for a public financing benefit.

AB543,6,23 (7) "Exploratory period" means the period that begins after the date of a spring election immediately preceding a public financing qualifying period and ends on the first day of the public financing qualifying period for the next election for justice.

AB543,6,25 (9) "Immediate family," when used with reference to a candidate, includes the candidate's spouse and children.