SB7-SSA1, s. 104 3Section 104. 11.61 (1) (e) of the statutes is created to read:
SB7-SSA1,45,94 11.61 (1) (e) Any treasurer of a committee which is required to file a report
5under s. 11.12 (6) and which files a report under that subsection which overstates or
6understates the amount of a disbursement made or obligation incurred by the
7committee in support of or in opposition to any candidate by more than 5% of the
8amount reported under that subsection may be fined not more than $10,000 or
9imprisoned for not more than 9 months or both.
SB7-SSA1, s. 105 10Section 105. 13.14 (3) of the statutes is amended to read:
SB7-SSA1,45,1511 13.14 (3) Travel; legislative personnel. The actual and necessary expenses
12of legislative policy research personnel, assistants to legislators and research staff
13assigned to legislative committees and party caucuses incident to attending
14meetings outside the capital shall be reimbursed from the appropriation under s.
1520.765 (1) (a) or (b).
SB7-SSA1, s. 106 16Section 106. 13.20 (1) of the statutes is amended to read:
SB7-SSA1,45,2317 13.20 (1) Number and pay range of legislative employes. The legislature or
18either house thereof may employ under the unclassified service such policy research
19personnel, assistants to legislators, research staff assigned to legislative committees
20and party caucuses and such clerical, professional or other assistants as in the
21judgment of the joint committee on legislative organization or the committee on
22organization in each house are necessary to enable it to perform its functions and
23duties and to best serve the people of this state.
SB7-SSA1, s. 107 24Section 107. 13.625 (1) (b) 3. of the statutes is amended to read:
SB7-SSA1,46,5
113.625 (1) (b) 3. Food, meals, beverages, money or any other thing of pecuniary
2value, except that a lobbyist may make a campaign contribution to a partisan elective
3state official or candidate for national, state or local office or to the official's or
4candidate's personal campaign committee; but a lobbyist may make a contribution
5to which par. (c) applies only as authorized in par. (c)
.
SB7-SSA1, s. 108 6Section 108. 13.625 (1) (c) (intro.) of the statutes is renumbered 13.625 (1) (c)
7and amended to read:
SB7-SSA1,46,168 13.625 (1) (c) Except as permitted in this subsection, make Make a campaign
9contribution, as defined in s. 11.01 (6), to a partisan elective state official for the
10purpose of promoting the official's election to any national, state or local office, or to
11a candidate for a partisan elective state office to be filled at the general election or
12a special election, or the official's or candidate's personal campaign committee. A
13campaign contribution to a partisan elective state official or candidate for partisan
14elective state office or his or her personal campaign committee may be made in the
15year of a candidate's election between June 1 and the day of the general election,
16except that:
SB7-SSA1, s. 109 17Section 109. 13.625 (1) (c) 1. and 2. of the statutes are repealed.
SB7-SSA1, s. 110 18Section 110. 13.625 (2) of the statutes is amended to read:
SB7-SSA1,47,319 13.625 (2) No principal may engage in the practices prohibited under sub. (1)
20(b) and (c) except that a principal may make a campaign contribution, as defined in
21s. 11.01 (6), to a partisan elective state official or candidate for partisan elective state
22office or his or her personal campaign committee in the year of an official's or
23candidate's election between June 1 and the day of the general election unless, in the
24case of a member of the legislature or candidate for legislative office, the legislature
25has not concluded its final floorperiod or is in special or extraordinary session
. This

1subsection does not apply to the furnishing of transportation, lodging, food, meals,
2beverages or any other thing of pecuniary value which is also made available to the
3general public.
SB7-SSA1, s. 111 4Section 111. 13.625 (6) of the statutes is amended to read:
SB7-SSA1,47,145 13.625 (6) Subsections (1) (b) and (c), (2) and (3) do not apply to the furnishing
6of anything of pecuniary value by an individual who is a lobbyist or principal to a
7relative of the individual or an individual who resides in the same household as the
8individual, nor to the receipt of anything of pecuniary value by that relative or
9individual residing in the same household as the individual. Subsections (1) (b), (2)
10and (3) do not apply to the furnishing of anything of pecuniary value, except a
11campaign contribution, as defined in s. 11.01 (6), by a lobbyist to a relative of the
12lobbyist or an individual who resides in the same household as the lobbyist, nor to
13the receipt of any such thing by that relative or individual residing in the same
14household as the individual.
SB7-SSA1, s. 112 15Section 112. 15.07 (1) (a) 2. of the statutes is repealed.
SB7-SSA1, s. 113 16Section 113. 15.07 (3) (a) of the statutes is amended to read:
SB7-SSA1,47,2317 15.07 (3) (a) If a department or independent agency is under the direction and
18supervision of a board, the board shall meet quarterly and at other times required
19by law,
and may meet at other times on the call of the chairperson or a majority of
20its members. If a department or independent agency is under the direction and
21supervision of a board, the board shall, in addition, meet no later than August 31 of
22each even-numbered year to consider and approve a proposed budget of the
23department or independent agency for the succeeding fiscal biennium.
SB7-SSA1, s. 114 24Section 114. 15.61 of the statutes is amended to read:
SB7-SSA1,48,13
115.61 Elections board; creation. There is created an elections board
2consisting of persons who shall be 6 members appointed by the governor for 2-year
36-year terms as follows: one member selected by the governor; one member each
4designated by the chief justice of the supreme court, the speaker of the assembly, the
5senate majority leader, the minority leader in each house of the legislature, and the
6chief officer of each political party qualifying for a separate ballot under s. 5.62 (1)
7(b) or (2) whose candidate for governor received at least 10% of the vote in the most
8recent gubernatorial election
. No member may hold any other office or employment
9in the government of this state or any political subdivision thereof or in any
10department. No member, for one year immediately prior to the date of appointment,
11may have been, or while serving on the board may become, a member of a political
12party, an officer or member of a committee in any partisan political club or
13organization or a candidate for any partisan elective public office
.
SB7-SSA1, s. 115 14Section 115. 19.42 (10) (a) of the statutes is repealed.
SB7-SSA1, s. 116 15Section 116. 20.510 (1) (d) of the statutes is created to read:
SB7-SSA1,48,2116 20.510 (1) (d) Election campaign fund supplement. A sum sufficient to
17supplement the Wisconsin election campaign fund for the purpose of enabling all
18eligible candidates and political party committees to receive the maximum grant for
19which the candidates and committees qualify under s. 11.50 (9), to be transferred to
20the Wisconsin election campaign fund no later than the time required to enable
21timely payments to be made under s. 11.50 (5).
SB7-SSA1, s. 117 22Section 117. 20.510 (1) (i) of the statutes is created to read:
SB7-SSA1,48,2523 20.510 (1) (i) Electronic filing software. All moneys received from registrants
24who purchase software to be utilized for electronic filing of campaign finance reports
25under s. 11.21 (16), for the purpose of providing that software.
SB7-SSA1, s. 118
1Section 118. 20.510 (1) (q) of the statutes is amended to read:
SB7-SSA1,49,62 20.510 (1) (q) Wisconsin election campaign fund. As a continuing
3appropriation, from the Wisconsin election campaign fund, the moneys determined
4under s. 11.50 to provide for payments to eligible candidates and political party
5committees whose names are
certified under s. 7.08 (2) (c), (cm) and (cn) and to
6provide for public information as authorized under s. 11.50 (2m)
.
SB7-SSA1, s. 119 7Section 119. 20.923 (6) (h) of the statutes is amended to read:
SB7-SSA1,49,108 20.923 (6) (h) Legislature: policy research personnel, assistants to legislators,
9research staff assigned to legislative committees and party caucuses and other
10persons employed under s. 13.20.
SB7-SSA1, s. 120 11Section 120. 25.42 of the statutes is amended to read:
SB7-SSA1,49,18 1225.42 Wisconsin election campaign fund. All moneys appropriated under
13s. ss. 20.510 (1) (d) and 20.855 (4) (b) together with all moneys deposited under ss.
148.35 (4) (a), 11.07 (5), 11.12 (2), 11.16 (2), 11.19 (1), (1m) and (6), 11.23 (2) and 11.38
15(6), all moneys
reverting to the state under s. 11.50 (8) and all gifts, bequests and
16devises received under s. 11.50 (13) constitute the Wisconsin election campaign fund,
17to be expended for the purposes of s. 11.50. All moneys in the fund not disbursed by
18the state treasurer shall continue to accumulate indefinitely.
SB7-SSA1, s. 121 19Section 121. 70.11 (intro.) of the statutes is amended to read:
SB7-SSA1,50,5 2070.11Property exempted from taxation. (intro.) The property described
21in this section is exempted from general property taxes; except that, if the owner of
22the property, either by itself or by means of an affiliate or agent, violates s. 11.095,
23that property is taxable for 10 years beginning on the January 1 after the violation
.
24Leasing a part of the property described in this section does not render it taxable if
25the lessor uses all of the leasehold income for maintenance of the leased property,

1construction debt retirement of the leased property or both and if the lessee would
2be exempt from taxation under this chapter if it owned the property. Any lessor who
3claims that leased property is exempt from taxation under this chapter shall, upon
4request by the tax assessor, provide records relating to the lessor's use of the income
5from the leased property. Property exempted from general property taxes is:
SB7-SSA1, s. 122 6Section 122. 71.05 (6) (a) 20. of the statutes is created to read:
SB7-SSA1,50,97 71.05 (6) (a) 20. Any amount deducted under section 162 (e) (1) of the Internal
8Revenue Code because of the exception contained in section 162 (e) (5) of the Internal
9Revenue Code.
SB7-SSA1, s. 123 10Section 123. 71.07 (5) (a) 8. of the statutes is created to read:
SB7-SSA1,50,1311 71.07 (5) (a) 8. Expenses under section 162 (e) (1) of the Internal Revenue Code
12that are deductible because of the exception contained in section 162 (e) (5) of the
13Internal Revenue Code.
SB7-SSA1, s. 124 14Section 124. 71.10 (3) (a) of the statutes is amended to read:
SB7-SSA1,50,1915 71.10 (3) (a) Every individual filing an income tax return who has a tax liability
16or is entitled to a tax refund may designate $1 $5 for the Wisconsin election campaign
17fund for the use of eligible candidates and political party committees under s. 11.50.
18If the individuals filing a joint return have a tax liability or are entitled to a tax
19refund, each individual may make a designation of $1 $5 under this subsection.
SB7-SSA1, s. 125 20Section 125. 71.26 (1) (intro.) of the statutes is amended to read:
SB7-SSA1,50,2321 71.26 (1)Exempt and excludable income. (intro.) There Except as provided
22in sub. (1g), there
shall be exempt from taxation under this subchapter income as
23follows:
SB7-SSA1, s. 126 24Section 126. 71.26 (1) (a) of the statutes is amended to read:
SB7-SSA1,52,2
171.26 (1) (a) Certain corporations. Income of corporations organized under ch.
2185, except income of a cooperative sickness care association organized under s.
3185.981, or of a service insurance corporation organized under ch. 613, that is derived
4from a health maintenance organization as defined in s. 609.01 (2) or a limited
5service health organization as defined in s. 609.01 (3), or operating under subch. I
6of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any
7shareholder or member, or operated on a cooperative plan pursuant to which they
8determine and distribute their proceeds in substantial compliance with s. 185.45,
9and the income, except the unrelated business taxable income as defined in section
10512 of the internal revenue code and except income that is derived from a health
11maintenance organization as defined in s. 609.01 (2) or a limited service health
12organization as defined in s. 609.01 (3), of all religious, scientific, educational,
13benevolent or other corporations or associations of individuals not organized or
14conducted for pecuniary profit. In computing unrelated business taxable income for
15the purposes of this paragraph, the expenses that are deductible under section 162
16(e) (1) of the Internal Revenue Code because of the exception contained in section 162
17(e) (5) of the Internal Revenue Code may not be deducted.
This paragraph does not
18apply to the income of savings banks, mutual loan corporations or savings and loan
19associations. This paragraph applies to the income of credit unions except to the
20income of any credit union that is derived from public deposits for any taxable year
21in which the credit union is approved as a public depository under ch. 34 and acts as
22a depository of state or local funds under s. 186.113 (20). For purposes of this
23paragraph, the income of a credit union that is derived from public deposits is the
24product of the credit union's gross annual income for the taxable year multiplied by
25a fraction, the numerator of which is the average monthly balance of public deposits

1in the credit union during the taxable year, and the denominator of which is the
2average monthly balance of all deposits in the credit union during the taxable year.
SB7-SSA1, s. 127 3Section 127. 71.26 (1g) of the statutes is created to read:
SB7-SSA1,52,74 71.26 (1g) Loss of exemption. If any corporation that is exempt under sub. (1),
5either by itself or by means of an affiliate or agent, violates s. 11.095, that
6corporation's exemption is revoked for ten taxable years, beginning with the taxable
7year during which the violation occurs.
SB7-SSA1, s. 128 8Section 128. 71.26 (2) (b) 1g. of the statutes is created to read:
SB7-SSA1,52,149 71.26 (2) (b) 1g. In computing the net income under this paragraph of a
10corporation, conduit or common law trust that qualifies as a regulated investment
11company, real estate mortgage investment conduit or real estate investment trust,
12expenses that are deductible under section 162 (e) (1) of the Internal Revenue Code
13because of the exception contained in section 162 (e) (5) of the Internal Revenue Code
14may not be deducted.
SB7-SSA1, s. 129 15Section 129. 71.26 (3) (e) 4. of the statutes is created to read:
SB7-SSA1,52,1816 71.26 (3) (e) 4. So that expenses that are deductible under section 162 (e) (1)
17of the Internal Revenue Code because of the exception contained in section 162 (e)
18(5) of the Internal Revenue Code may not be deducted.
SB7-SSA1, s. 130 19Section 130. 71.34 (1) (ad) of the statutes is created to read:
SB7-SSA1,52,2220 71.34 (1) (ad) The expenses that are deductible under section 162 (e) (1) of the
21Internal Revenue Code because of the exception contained in section 162 (e) (5) of the
22Internal Revenue Code may not be deducted.
SB7-SSA1, s. 131 23Section 131. 71.45 (1) of the statutes is amended to read:
SB7-SSA1,53,1524 71.45 (1) Exempt and excludable income. There Except as provided in sub.
25(1g), there
shall be exempt from taxation under this subchapter income of insurers

1exempt from federal income taxation pursuant to section 501 (c) (15) of the internal
2revenue code, town mutuals organized under or subject to ch. 612, foreign insurers,
3and domestic insurers engaged exclusively in life insurance business, domestic
4insurers insuring against financial loss by reason of nonpayment of principal,
5interest and other sums agreed to be paid under the terms of any note or bond or other
6evidence of indebtedness secured by a mortgage, deed of trust or other instrument
7constituting a lien or charge on real estate and corporations organized under ch. 185,
8but not including income of cooperative sickness care associations organized under
9s. 185.981, or of a service insurance corporation organized under ch. 613, that is
10derived from a health maintenance organization as defined in s. 609.01 (2) or a
11limited service health organization as defined in s. 609.01 (3), or operating under
12subch. I of ch. 616 which are bona fide cooperatives operated without pecuniary profit
13to any shareholder or member, or operated on a cooperative plan pursuant to which
14they determine and distribute their proceeds in substantial compliance with s.
15185.45.
SB7-SSA1, s. 132 16Section 132. 71.45 (1g) of the statutes is created to read:
SB7-SSA1,53,2017 71.45 (1g) Loss of exemption. If any insurer that is exempt under sub. (1),
18either by itself or by means of an affiliate or agent, violates s. 11.095, that insurer's
19exemption is revoked for 10 taxable years, beginning with the taxable year during
20which the violation occurs.
SB7-SSA1, s. 133 21Section 133. 71.45 (2) (a) 15. of the statutes is created to read:
SB7-SSA1,53,2422 71.45 (2) (a) 15. By adding to federal taxable income the amount of any
23expenses that are deductible under section 162 (e) (1) of the Internal Revenue Code
24because of the exception contained in section 162 (e) (5) of the Internal Revenue Code.
SB7-SSA1, s. 134 25Section 134. 230.08 (2) (f) of the statutes is amended to read:
SB7-SSA1,54,3
1230.08 (2) (f) All legislative officers and, in addition, policy research personnel,
2assistants to legislators, research staff assigned to legislative committees and party
3caucuses
and other persons employed under s. 13.20.
SB7-SSA1, s. 135 4Section 135. 806.04 (11m) of the statutes is created to read:
SB7-SSA1,54,105 806.04 (11m) Campaign finance registration. Any person who proposes to
6publish, disseminate or broadcast, or cause to be published, disseminated or
7broadcast any communication, or who proposes to retain any person to engage in
8persuasive telephoning, as defined in s. 11.095 (1) (a), may commence a proceeding
9under this section to determine the application to that person of a registration
10requirement under s. 11.05 (1), (2) or (2g).
SB7-SSA1, s. 136 11Section 136. Nonstatutory provisions.
SB7-SSA1,54,2112 (1) Initial terms of office. The members of the elections board who are serving
13on the effective date of this subsection may continue to hold office until all members
14of the elections board who are initially appointed under this act are nominated by the
15governor and with the advice and consent of the senate appointed and qualified, at
16which time the members who are serving on the effective date of this subsection shall
17cease to hold office. Notwithstanding section 15.61 of the statutes, as affected by this
18act, of the members of the elections board who are initially appointed under this act,
19the governor shall designate 2 members to serve for terms expiring on May 1, 1999,
202 members to serve for terms expiring on May 1, 2001, and 2 members to serve for
21terms expiring on May 1, 2003.
SB7-SSA1,54,2222 (2) Elimination of partisan caucus staffs.
SB7-SSA1,54,2523 (a) The authorized FTE positions for the assembly, funded from the
24appropriation under section 20.765 (1) (a) of the statutes, are decreased by 30.0 GPR
25positions on July 1, 1998, to eliminate staffing of party caucuses.
SB7-SSA1,55,3
1(b) The authorized FTE positions for the senate, funded from the appropriation
2under section 20.765 (1) (b) of the statutes, are decreased by 24.0 GPR positions on
3July 1, 1998, to eliminate staffing of party caucuses.
SB7-SSA1, s. 137 4Section 137. Initial applicability.
SB7-SSA1,55,65 (1) Except as provided in subsections (2) to (4 ), this act first applies to elections
6held on January 1, 1998, or the day after publication, whichever is later.
SB7-SSA1,55,97 (2)  The treatment of sections 11.21 (16) and 20.510 (1) (i) of the statutes first
8applies with respect to campaign finance reports that are required to be filed after
9June 30, 1999.
SB7-SSA1,55,1310 (3) The treatment of sections 11.50 (2m), 71.05 (6) (a) 20., 71.07 (5) (a) 8., 71.10
11(3) (a), 71.26 (1) (a), (2) (b) 1g. and (3) (e) 4., 71.34 (1) (ad) and 71.45 (2) (a) 15. of the
12statutes first applies to tax returns for taxable years beginning on the January 1
13following the effective date of this subsection.
SB7-SSA1,55,1514 (4) The treatment of section 11.31 (9) of the statutes first applies to adjustment
15of disbursement limitations for the biennium beginning on January 1, 1999.
SB7-SSA1, s. 138 16Section 138. Effective dates. This act takes effect on the day after
17publication, except as follows:
SB7-SSA1,55,1918 (1) The treatment of section 11.20 (10) (a) of the statutes takes effect on July
191, 1998.
SB7-SSA1,55,2120 (2) The treatment of sections 13.14 (3), 13.20 (1), 20.923 (6) (h) and 230.08 (2)
21(f) of the statutes takes effect on July 1, 1998.
SB7-SSA1,55,2322 (3) The treatment of section 20.510 (1) (d) of the statutes takes effect on
23January 1, 1999.
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