Register January 2023 No. 805
Chapter ETH 1
CAMPAIGN FINANCING
ETH 1.20 Treatment and reporting of in-kind contributions.
ETH 1.25 Loan treatment respecting limitations.
ETH 1.26 Return of contribution.
ETH 1.32 Contribution of partnership funds.
ETH 1.33 Retirement of campaign debts incurred to business creditors.
ETH 1.385 Return of contributions to contributors by candidates when candidates file nomination papers for offices that have lower contribution limits than the limits that applied at the time of the contributions.
ETH 1.39 Conversion of federal campaign committee to state committee prohibited.
ETH 1.56 Commercial sales by political registrants.
ETH 1.60 Consulting services.
ETH 1.70 Travel reimbursements.
ETH 1.85 Conduit registration and reporting requirements.
ETH 1.855 Contributions from conduit accounts.
ETH 1.95 Contributions of individuals under the age of 18.
ETH 1.96 Attribution requirements.
Ch. ETH 1 Note
Note: Chapter ElBd 1 was renumbered chapter GAB 1 under s. 13.92 (4) (b) 1., Stats., and corrections made under s. 13.92 (4) (b) 6. and 7., Stats.,
Register April 2008 No. 628. Chapter GAB 1 was renumbered Chapter ETH 1 under s. 13.92 (4) (b) 1., Stats.,
Register June 2016 No. 726.
ETH 1.20
ETH 1.20
Treatment and reporting of in-kind contributions. ETH 1.20(1)(b)
(b) “Authorized person" means a candidate, treasurer, agent, other person whom a candidate designates, or a person whom any other registrant designates to authorize a proposed in-kind contribution.
ETH 1.20(1)(c)
(c) “Contributor" means any individual or registrant who proposes to make an in-kind contribution.
ETH 1.20(1)(d)
(d) “Date of contribution" means the time as of which the benefit, of the thing of value given or of the service performed, is conferred upon the candidate's campaign or upon the registrant.
ETH 1.20(1)(e)
(e) “In-kind contribution" means a disbursement by a contributor to procure a thing of value or service for the benefit of a registrant who authorized the disbursement.
ETH 1.20(2)
(2) Before making an in-kind contribution to a candidate or other registrant, the prospective contributor shall notify an authorized person and obtain that person's oral or written consent to the contribution.
ETH 1.20(3)
(3) When an individual other than a registrant receives authorization to make an in-kind contribution, the authorized person shall obtain from the contributor, in writing: the contributor's name and address and, where applicable, the contributor's occupation, the nature of the contribution, its actual value, and the date of the contribution.
ETH 1.20(4)
(4) When a registrant receives authorization to make an in-kind contribution, the registrant shall provide to the authorized person, in writing, before the closing date of the next campaign finance report in which the contribution is required to be listed: the registrant's name and address, the nature of the contribution and its actual value, and the date of the contribution.
ETH 1.20(5)
(5) If a contributor does not know the actual value of an in-kind contribution, the contributor shall give an authorized person a good-faith and reasonable estimate of the fair market value, before the closing date of the next campaign finance report in which the contribution is required to be listed. When the contributor receives bills or other statements reflecting the actual value of the in-kind contribution, the contributor shall immediately forward that information to an authorized person.
ETH 1.20(6)
(6) An in-kind contribution shall be reported as received and accepted by the candidate or registrant on the date that the benefit, of the material supplied or the service performed, is conferred upon the candidate or other registrant.
ETH 1.20(7)
(7) A candidate or registrant shall report the value of the in-kind contribution disclosed to him or her by the contributor. If a contributor estimates the fair market value, a candidate or registrant shall report the estimated value. After being informed of the actual value, by the contributor, a candidate or registrant shall report the actual value on the next campaign finance report.
ETH 1.20(8)
(8) Without the proper authorization to make an in-kind contribution, a contributor may not make the proposed in-kind contribution unless the contribution qualifies as an independent expenditure under ss.
11.0505,
11.0605, and
11.1001, Stats.
ETH 1.20(9)
(9) Any registrant who makes or receives an in-kind contribution shall report the contribution on its campaign finance report.
ETH 1.20 History
History: Cr.
Register, January, 1992, No. 433, eff. 2-1-92; correction in (1) (f), (8) made under s.
13.92 (4) (b) 7., Stats.,
Register June 2016 No. 726;
CR 19-035: am. (9)
Register May 2020 No. 773, eff. 6-1-20;
CR 20-010: am. (3), (4)
Register June 2021 No. 786, eff. 7-1-21.
ETH 1.25
ETH 1.25
Loan treatment respecting limitations. A loan when made by any person or committee, except a loan of money by a commercial lending institution made by the institution in accordance with applicable banking laws and regulations in the ordinary course of business, shall be reported as a contribution or disbursement, and also as an incurred obligation by the debtor. When such a loan is received by a registrant, it is counted within the contribution limitation of the creditor while outstanding, but is not counted within the limitation after repayment. The amount or value of any such outstanding loans and any other contributions or disbursements shall at no time exceed any limitation specified in ss.
11.1101,
11.1103,
11.1104, and
11.1105, Stats.
ETH 1.25 History
History: Cr.
Register, March, 1975, No. 231, eff. 4-1-75; am.
Register, February, 1986, No. 362, eff. 3-1-86; correction made under s.
13.92 (4) (b) 7., Stats.,
Register June 2016 No. 726;
CR 20-010: am.
Register June 2021 No. 786, eff. 7-1-21.
ETH 1.26
ETH 1.26
Return of contribution. ETH 1.26(1)(1)
This rule is promulgated to clarify the treatment and reporting of returned contributions.
ETH 1.26(5)
(5) Any registrant and candidate who returns a contribution that is not deposited into the campaign depository within 10 days of receipt is not required to report the returned, unaccepted contribution on a campaign finance report.
ETH 1.26(6)
(6) A registrant who receives a return of contribution shall report it on the campaign finance report and shall designate this as “return of contribution.”
ETH 1.26 History
History: Cr.
Register, March, 1975, No. 231, eff. 4-1-75; am.
Register, September, 1978, No. 273, eff. 10-1-78; r. and recr. (3) to (5), cr. (6),
Register, February, 1986, No. 362, eff. 3-1-86; correction in (2) made under s.
13.92 (4) (b) 7., Stats.,
Register June 2016 No. 726;
CR 18-047: r. (3), (4) August 2019 No. 764, eff. 9-1-19;
CR 19-035: am. (2), (6)
Register May 2020 No. 773, eff. 6-1-20.
ETH 1.32
ETH 1.32
Contribution of partnership funds. ETH 1.32(1)(1)
As used in this rule, “partnership" includes all associations organized for profit and all other partnerships.
ETH 1.32(1)(a)
(a) A contribution in the name of a partnership shall be treated as an individual contribution from each partner in relation to each partner's interest in the partnership profits or losses unless the partners agree to apportion the contribution otherwise.
ETH 1.32(1)(b)
(b) When a contribution is made in the name of a partnership, the registrant must obtain the information as to each partner's share thereof within 30 days after receiving the contribution or return the contribution.
ETH 1.32 History
History: Cr.
Register, June, 1977, No. 258, eff. 7-1-77.
ETH 1.33
ETH 1.33
Retirement of campaign debts incurred to business creditors. ETH 1.33(1)(1)
As used in this section “an obligation incurred by a registrant to a business creditor" means an obligation incurred by the registrant for goods or services.
ETH 1.33(2)
(2) An obligation incurred by a registrant to a business creditor will be treated as a contribution of the creditor if any part of the obligation is outstanding for a period longer than that consistent with normal business or trade practice, or if the obligation is settled for less than the outstanding debt, unless a showing is made to the registrant's filing officer that the creditor has treated the obligation in a commercially reasonable manner. Such a showing must include at least the following:
ETH 1.33(2)(a)
(a) The initial extension of credit on which the obligation was incurred was made in the ordinary course of business with terms substantially similar to those granted to non-political debtors of similar credit risk; and
ETH 1.33(2)(b)
(b) The creditor has made all reasonable efforts to retire the debt, including pursuit of all remedies which would normally be employed by the creditor in pursuit of a non-political debtor. “Reasonable efforts to retire the debt" include lawsuits, if filed in similar circumstances.
ETH 1.33 History
History: Cr.
Register, August, 1977, No. 260, eff. 9-1-77.
ETH 1.385
ETH 1.385
Return of contributions to contributors by candidates when candidates file nomination papers for offices that have lower contribution limits than the limits that applied at the time of the contributions. A candidate shall be subject to the contribution limits that apply to the candidate at the time of the primary election at which the candidate's name appears on the ballot. If a candidate for any office has unspent contributions in his or her campaign depository at the time of filing nomination papers that were lawful at the time of receipt but exceeded the contribution limit that applies to the office for which the candidate is seeking nomination, the candidate shall dispose of the unspent contributions. The candidate shall either return the excess contribution to the contributor on a reasonable basis that the candidate determines or donate the excess contribution to either the common school fund or a charitable organization.
ETH 1.385 History
History: Emerg. cr. eff. 6-1-86; cr.
Register, November, 1986, No. 371, eff. 12-1-86.
ETH 1.39
ETH 1.39
Conversion of federal campaign committee to state committee prohibited. ETH 1.39(1)(a)
(a) “Federal campaign committee" means the campaign committee of a candidate for federal office, which is not registered with a state or local filing officer, and
ETH 1.39(1)(b)
(b) “State campaign committee" means the candidate committee of a candidate for state or local office.
ETH 1.39(2)(a)(a) A candidate's federal campaign committee may not be converted to a state campaign committee.
ETH 1.39(2)(b)
(b) A candidate's federal campaign committee may contribute funds collected for federal purposes to the candidate's state or local campaign, not to exceed the maximum amount that may be contributed by a single committee to a candidate for the same office under ss.
11.1101,
11.1103,
11.1104, and
11.1105, Stats., by filing a campaign finance registration statement, pursuant to ss.
11.0501,
11.0502, and
11.0503, Stats., with the appropriate filing officer.
ETH 1.39 History
History: Cr.
Register, August, 1977, No. 260, eff. 9-1-77;
CR 05-027: am. (2)
Register November 2005 No. 599, eff. 12-1-05; correction in (2) (b) made under s.
13.92 (4) (b) 7., Stats.,
Register June 2016 No. 726;
CR 20-010: am. (1) (b)
Register June 2021 No. 786, eff. 7-1-21.
ETH 1.56
ETH 1.56
Commercial sales by political registrants. ETH 1.56(1)(1)
When a registrant receives donated items for resale the proceeds from the resale transaction shall be reported in the following manner:
ETH 1.56(1)(a)
(a) The receipt of the item shall be reported in the registrant's campaign finance report as an in-kind contribution and as an in-kind expenditure at the fair market value of the donated item;
ETH 1.56(1)(b)
(b) The resale of the item shall be reported in the registrant's campaign finance report as a contribution from the purchaser in the amount paid by the purchaser.
ETH 1.56(1)(c)
(c) The registrant must make a good faith effort to accurately reflect the fair market value of the item in its campaign finance report.
ETH 1.56(2)
(2) When a registrant sells an item which it has purchased for resale to raise funds, the entire amount of the proceeds of the sale shall be reported in the registrant's campaign finance report as a contribution from the purchaser.
ETH 1.56(3)
(3) The proceeds from the sale of food and beverage at a fundraiser by a registrant shall be reported in the registrant's campaign finance report as a contribution from the purchaser.
ETH 1.56(5)
(5) When a registrant disposes of tangible assets of the campaign by sale in a regular commercial transaction for fair market value, the proceeds of the sale shall be reported as “other income" in the registrant's campaign finance reports.
ETH 1.60(1)(a)
(a) Expenditures for consulting services made by a candidate committee, political action committee, legislative campaign committee, or political party on behalf of more than one candidate shall be attributable to each candidate in proportion to, and shall be reported to reflect, the benefit reasonably derived, except as provided in par.
(c). This rule shall not apply to independent expenditures made under ss.
11.0505,
11.0605, and
11.1001, Stats.
ETH 1.60(1)(b)
(b) An authorized expenditure for consulting services made by a candidate, candidate committee, political action committee, or political party on behalf of another candidate shall be reported as an in-kind contribution to the candidate on whose behalf the expenditure was made, except as provided in par.
(c).
ETH 1.60(1)(c)
(c) Exceptions to pars.
(a) and
(b). Expenditures for rent, personnel, overhead, general administrative, fund-raising, and other costs of political parties or legislative campaign committees, which costs are incurred in the ordinary course of its day-to-day operations, need not be attributed to individual candidates, unless these expenditures are made on behalf of a clearly identified candidate and the expenditure can be directly attributed to that candidate.
ETH 1.60(2)
(2) If a candidate, candidate committee, political action committee, political party, or legislative campaign committee, for itself or another, hires a consultant to work during a campaign period as that term is defined in ss.
11.1101,
11.1103,
11.1104, and
11.1105, Stats., the amount paid or incurred shall be presumed to be an expenditure on behalf of a candidate or candidates who receive assistance from the consultant. This presumption may be rebutted.
ETH 1.60(3)
(3) Any expenditures for consulting services shall be valued at the fair market value of the item or services at the time of the contribution.
ETH 1.60 History
History: Emerg. cr. eff. 6-1-86; cr.
Register, November, 1986, No. 371, eff. 12-1-86; correction in (2) made under s. 13.93 (2m) (b) 7., Stats.,
Register, August, 1999, No. 524; correction in (1) (a), (b), (2) made under s. 13.92 (4) (b) 7., Stats.,
Register June 2016 No. 726;
CR 19-035: am. (1) (b)
Register May 2020 No. 773, eff. 6-1-20;
CR 20-010: am. (1) (a), (c), (2)
Register June 2021 No. 786, eff. 7-1-21.
ETH 1.70
ETH 1.70
Travel reimbursements. ETH 1.70(1)(1)
A candidate for or a person elected to a state or local office does not make an in-kind contribution to another candidate for a state or local office in another district when a candidate or election official travels to the district of the other candidate for political purposes. The candidate for or person elected to state or local office may be reimbursed from his or her candidate committee and is deemed to provide nonreportable volunteer services to the candidate in the other district.
ETH 1.70(2)
(2) If the candidate or elected official is reimbursed by another individual, candidate committee, political action committee, political party, or legislative campaign committee for travel, the reimbursement is a reportable contribution to the candidate.
ETH 1.70(3)
(3) If the candidate or elected official is an officer or employee of a political party or legislative campaign committee who travels on committee business, the reimbursement is not a reportable contribution to the candidate or elected official, but is a reportable disbursement of the political party or legislative campaign committee.
