LRB-5210/1
JK&ZDW:skw
2023 - 2024 LEGISLATURE
December 8, 2023 - Introduced by Senators Knodl and James, cosponsored by
Representatives Novak, Melotik, Conley, Gundrum, Mursau, Ortiz-Velez
and Penterman. Referred to Committee on Shared Revenue, Elections and
Consumer Protection.
SB741,2,2
1An Act to renumber and amend 11.0202 (2) (d), 11.0505 (3), 11.0605 (3) and
211.1001 (3);
to amend 11.0102 (2) (a), 11.0102 (2) (b), 11.0505 (1) (a) 1., 11.0505
3(1) (a) 2. (intro.), 11.0505 (1) (a) 3., 11.0505 (1) (b) 1., 11.0505 (1) (b) 2., 11.0505
4(1) (b) 3., 11.0505 (1) (b) 4., 11.0605 (1) (a) 1., 11.0605 (1) (a) 2. (intro.), 11.0605
5(1) (a) 3., 11.0605 (1) (b) 1., 11.0605 (1) (b) 2., 11.0605 (1) (b) 3., 11.0605 (1) (b)
64., 11.1001 (1) (a) 1., 11.1001 (1) (a) 2. (intro.), 11.1001 (1) (a) 3., 11.1001 (1) (b)
71., 11.1001 (1) (b) 2., 11.1001 (1) (b) 3. and 11.1001 (1) (b) 4.;
to repeal and
8recreate 11.1114; and
to create 11.0102 (2) (e), 11.0202 (2) (d) 2., 11.0202 (2)
9(d) 3., 11.0202 (2) (d) 4., 11.0203 (1) (bd), 11.0303 (1) (bd), 11.0403 (1) (bd),
1011.0503 (1) (bd), 11.0505 (3) (a), 11.0505 (3) (b), 11.0505 (3) (c), 11.0603 (1) (bd),
1111.0605 (3) (a), 11.0605 (3) (b), 11.0605 (3) (c), 11.0703 (1) (bd), 11.0706, 11.0803
12(1) (bd), 11.0903 (1) (bd), 11.1001 (3) (a), 11.1001 (3) (b), 11.1001 (3) (c), 11.1305,
1313.62 (12t), 19.55 (2) (e), 19.55 (3) (e) 5. and 6., 19.55 (5) and 19.851 (3) of the
1statutes;
relating to: recommendations from the Ethics Commission
2regarding campaign finance, lobbying, open records, and closed sessions.
Analysis by the Legislative Reference Bureau
This bill implements a number of recommendations from the Ethics
Commission (the commission) regarding the operations of the commission and the
laws that it administers.
campaign finance
Registration statement information
Under current law, a person who files a registration statement with the
commission, or with some other appropriate filing officer, to form a committee for
campaign finance purposes must include on the registration statement the name and
mailing address of the committee, the committee treasurer, and any other custodian
of committee books and accounts. This bill also requires that a person include on a
committee registration statement the email address and personal telephone number
of the committee treasurer and any other custodian of the committee books and
records. In addition, a candidate committee is required to provide the candidate's
email and personal telephone number. Under the bill, the personal telephone
numbers provided on the registration statements are confidential and not subject to
inspection and copying as a public record.
Second candidate committee
Current law allows, but does not require, an individual who holds a state or
local elective office and who seeks a different state or local elective office to form a
second candidate committee. Otherwise current law prohibits a candidate from
having more than one candidate committee at the same time. For individuals who
establish a second candidate committee, as provided under current law, the bill
specifies the methods for transferring funds between the two committees, how to
report those transfers, and how to dispose of funds remaining when one or both
committees terminate.
Conduit; residual funds
Under current law, a conduit must also register with the commission. A conduit
is an entity that receives a contribution from an individual, deposits that
contribution in an account held by the entity, and disburses that contribution to a
political committee at the direction of the individual who made the contribution. The
bill specifies what the conduit must do with funds remaining in its possession when
the conduit terminates. Under current law, the conduit must first make a good faith
effort to return remaining funds to the original contributors, their surviving spouses,
or the executors of their estates. Under the bill, if the terminating conduit is
unsuccessful in contacting the individuals who made the original contributions,
their surviving spouses, or the executors of their estates, the conduit may donate
those remaining funds to the common school fund or to a charitable organization.
However, the conduit may not donate remaining funds to a charitable organization
that is affiliated with the conduit or a sponsoring organization. Current law defines
a sponsoring organization as an entity that establishes, administers, or financially
supports a political action committee or an independent expenditure committee.
Administrative suspension
Under current law, a committee that does not anticipate accepting or making
contributions, making disbursements, or incurring obligations in an aggregate
amount exceeding $2,500 in a calendar year may claim an exemption from filing
campaign finance reports by filing a registration statement or an amended
registration statement specifying the facts necessary to claim the exemption. The
committee must file a statement each year in which it wishes to claim the exemption
until such time as the committee files a termination report.
The bill allows a filing agent to terminate any committee that has been exempt
from filing campaign finance reports for more than three years. The bill also
authorizes the commission to suspend a committee that does not respond to notices
and communications sent by the commission.
Reporting of express advocacy
Under current law, a political action committee, independent expenditure
committee, or a person other than a committee that spends $2,500 or more on express
advocacy for a candidate at an election must report required information to the
commission. This information includes the dates on which disbursements were
made, the name and address of the persons who received the disbursements, the
purpose for making the disbursements, and the amount spent for each act of express
advocacy.
The bill clarifies that the reporting requirement applies to express advocacy
that will occur during the period beginning 60 days prior to the election and ending
on the day of the election. The bill provides that the required information also
includes the dates on which obligations were incurred, the name and address of the
obligees, the purpose for incurring the obligations, and the amount incurred for each
act of express advocacy.
Conduit filing fee
Under current law, each conduit that is required to register and report must
have and file with the commission required registration statements and reports. The
bill provides that each conduit must pay an annual filing fee of $100 to the
commission by January 15 of each year. The bill provides that this requirement does
not apply to a conduit in a year in which the conduit does not release contributions
totaling more than $2,500.
lobbying
Current law allows a lobbyist to make a personal contribution to a partisan
elective state official or a candidate for an elective state office between the first day
authorized by law for the circulation of nomination papers as a candidate at a general
election or special election and the day of the general election or special election. The
bill clarifies that the special election must be an election to fill a vacancy in a state
office.
open records
Current law provides that certain records in the possession of the commission
are not open for public inspection. Those records include, with limited exceptions,
statements of economic interests filed by members of the investment board and the
social security numbers of individuals who apply for a lobbyist license. Under the
bill, with certain exceptions, records created in the course of conducting an audit to
identify a potential violation of the laws administered by the commission are not
open for public inspection. However, the bill allows public inspection of audit records
containing a finding that there is no reasonable suspicion or probable cause to believe
that a violation of the law occurred or that the commission took no action upon
finding such reasonable suspicion or probable cause. The bill also allows public
inspection of any audit record of the commission issuing a warning, authorizing the
filing of a civil complaint, or referring a matter to a district attorney or other
prosecutor for investigation or prosecution.
closed sessions
Current law allows a governmental body to meet in closed session for various
reasons, including deliberating on a case subject to a judicial hearing, consulting
with legal counsel regarding litigation, or considering personnel matters. In
addition, current law allows the commission to meet in closed session to consider
requests for confidential written advice and for deliberations concerning an
investigation of any violation of the law under its jurisdiction. Under the bill, the
commission may also meet in closed session to consider whether there is a reasonable
suspicion or probable cause to believe that a violation of the law occurred or is
occurring based on a complaint or an audit report.
For further information see the state and local 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:
SB741,1
1Section
1. 11.0102 (2) (a) of the statutes is amended to read:
SB741,4,72
11.0102
(2) (a) Except as provided in pars. (c) and (d), each
conduit or committee
3that is required to register and file with the commission under sub. (1) (a) shall
4annually pay a filing fee of $100 to the commission. The commission may accept
5payment under this subsection by credit card, debit card, or other electronic payment
6mechanism, and may charge a surcharge to that
conduit or committee to recover the
7actual costs associated with the acceptance of that electronic payment.
SB741,2
1Section
2. 11.0102 (2) (b) of the statutes is amended to read:
SB741,5,92
11.0102
(2) (b) A
conduit or committee that is subject to par. (a) shall pay the
3fee specified in par. (a) together with the report filed by that
conduit or committee
4on the 15th day of the month of January in each year. If a
conduit or committee that
5is subject to par. (a) registers under this chapter or changes status so that par. (a)
6becomes applicable to the
conduit or committee during a calendar year, the
conduit
7or committee shall pay the fee for that year with the filing of the
conduit's or 8committee's registration statement or at any time before the change in status
9becomes effective.
SB741,3
10Section
3. 11.0102 (2) (e) of the statutes is created to read:
SB741,5,1211
11.0102
(2) (e) Paragraph (a) does not apply to a conduit for any year during
12which the conduit does not release contributions totaling more than $2,500.
SB741,4
13Section
4. 11.0202 (2) (d) of the statutes is renumbered 11.0202 (2) (d) 1. and
14amended to read:
SB741,5,1815
11.0202
(2) (d) 1. An individual who holds a state or local elective office
and who
16becomes a candidate for a different state or local elective office may establish a
17second candidate committee under this subchapter for the purpose of pursuing
a
18that different state or local office.
SB741,5
19Section
5. 11.0202 (2) (d) 2. of the statutes is created to read:
SB741,6,220
11.0202
(2) (d) 2. If the individual described under subd. 1. wins the election
21for which the individual created the second candidate committee, and the individual
22is not eligible to continue to hold the first office, the individual shall terminate the
23first candidate committee as provided under s. 11.0105 no later than 180 days after
24the date the individual is sworn into the office for which the second candidate
1committee was created. Residual funds of the first committee may be transferred as
2provided in s. 11.1114 or used or disposed of in any manner allowed by law.
SB741,6
3Section
6. 11.0202 (2) (d) 3. of the statutes is created to read:
SB741,6,134
11.0202
(2) (d) 3. If the individual described under subd. 1. wins the election
5for which the individual created the second candidate committee, but the individual
6is still eligible to hold the first office, the individual shall maintain a committee for
7each office until such time as the individual resigns from, or a successor is sworn in
8to, the office. If the individual subsequently resigns from either office, or a successor
9is sworn into either office, the individual shall terminate the candidate committee
10for which the individual no longer holds office as provided under s. 11.0105 no later
11than 180 days after the date the individual resigns or a successor is sworn in.
12Residual funds of the terminated committee may be transferred as provided in s.
1311.1114 or used or disposed of in any manner allowed by law.
SB741,7
14Section
7. 11.0202 (2) (d) 4. of the statutes is created to read:
SB741,6,2015
11.0202
(2) (d) 4. If the individual described under subd. 1. loses the election
16for which the individual created the second candidate committee, the individual
17shall terminate the second candidate committee as provided in s. 11.0105 no later
18than 180 days after the date the winner of that election takes office. Residual funds
19of the second committee may be transferred as provided in s. 11.1114 or used or
20disposed of in any manner allowed by law.
SB741,8
21Section
8. 11.0203 (1) (bd) of the statutes is created to read:
SB741,7,222
11.0203
(1) (bd) The email address and personal telephone number of the
23candidate, the candidate committee treasurer, and any other custodian of books and
24accounts. Telephone numbers provided under this paragraph shall be kept
1confidential and are not subject to the right of inspection and copying under s. 19.35
2(1).
SB741,9
3Section
9. 11.0303 (1) (bd) of the statutes is created to read:
SB741,7,74
11.0303
(1) (bd) The email address and personal telephone number of the
5treasurer and any other custodian of books and accounts. Telephone numbers
6provided under this paragraph shall be kept confidential and are not subject to the
7right of inspection and copying under s. 19.35 (1).
SB741,10
8Section
10. 11.0403 (1) (bd) of the statutes is created to read:
SB741,7,129
11.0403
(1) (bd) The email address and personal telephone number of the
10treasurer and any other custodian of books and accounts. Telephone numbers
11provided under this paragraph shall be kept confidential and are not subject to the
12right of inspection and copying under s. 19.35 (1).