Amendment ASA1-AB225

CORRECTED COPY

LRBs0081/1

JTK/JK/TKK:all:wj

2013 - 2014 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 225

June 10, 2013 - Offered by Representatives Vos, Mason, Stone, Kessler and Berceau.

AB225-ASA1,3,2 An Act to repeal 11.20 (8) (c), 11.31, 67.05 (3) (a) 2. and 67.05 (3) (a) 4.; to renumber 6.79 (1m); to renumber and amend 9.20 (4), 11.20 (3) (a), 11.20 (3) (b), 11.20 (3) (c), 11.20 (3) (d), 11.20 (3) (f), 11.20 (3) (g), 11.20 (3) (h), 11.20 (3) (k), 11.20 (3) (L), 11.20 (4), 11.26 (9) (a), 11.26 (9) (b), 13.62 (1) and 67.05 (5) (b); to amend 5.02 (19), 5.056, 5.15 (6) (b), 5.90 (1), 6.24 (3), 6.275 (1) (b), 6.28 (1), 6.30 (1), 6.32, 6.33 (1), 6.33 (2) (a), 6.34 (2), 6.34 (3) (a) 8., 6.34 (3) (a) 9., 6.35 (1) (intro.), 6.36 (2) (a), 6.36 (2) (c), 6.40 (1) (a) 1., 6.40 (1) (c), 6.50 (10), 6.55 (2) (d), 6.79 (2) (c), 6.86 (2) (b), 6.86 (3) (c), 6.87 (4) (b) 1., 7.08 (1) (c), 7.15 (2) (d), 7.30 (2) (a), 7.30 (2) (am), 7.30 (4) (b) 1., 7.30 (4) (b) 2., 7.30 (4) (e), 7.51 (3) (a), 7.52 (8), 8.05 (3) (d), 8.05 (3) (e), 8.06, 9.01 (1) (ag) 1m., 11.05 (1), 11.05 (2), 11.05 (2r), 11.05 (3) (c), 11.05 (12) (b), 11.06 (1) (intro.), 11.06 (1) (a), 11.06 (1) (d), 11.06 (1) (e), 11.06 (1) (f), 11.06 (1) (g), 11.06 (1) (h), 11.06 (11) (a), 11.07 (1), 11.12 (6), 11.20 (8) (intro.) and (b), 11.20 (12), 11.21 (16), 11.23 (1), 11.26 (1) (a), 11.26 (1) (b), 11.26 (1) (c), 11.26 (1) (cn), 11.26 (1) (cw), 11.26 (2) (a), 11.26 (2) (b), 11.26 (2) (c), 11.26 (2) (cn), 11.26 (2) (cw), 11.26 (4), 11.26 (8) (a), 11.26 (8) (b), 11.26 (8) (c), 11.30 (4), 11.38 (1) (a) 1., 11.38 (1) (a) 3., 13.625 (1) (c) (intro.), 13.63 (1) (a), 13.67, 13.695 (1) (a), 13.695 (1) (b), 13.75 (5), 19.45 (8) (b) and (c), 24.66 (3) (b), 24.66 (4), 32.72 (1), 38.15 (1), 38.16 (3) (br) 1., 59.08 (7) (b), 59.605 (3) (a) 1., 60.62 (2), 60.74 (5) (b), 61.187 (1), 61.46 (1), 62.09 (1) (a), 62.13 (6) (b), 64.03 (1), 64.39 (3), 66.0101 (8), 66.0211 (1), 66.0213 (6), 66.0215 (2), 66.0217 (3) (b), 66.0217 (7) (a) 3., 66.0217 (7) (d), 66.0219 (4) (b), 66.0225 (2), 66.0227 (3), 66.0305 (6) (b), 66.0307 (4) (e) 2., 66.0602 (4) (a), 66.0619 (2m) (b), 66.0815 (1) (c), 66.0921 (2), 66.1103 (10) (d), 66.1113 (2) (g), 66.1113 (2) (h), 67.05 (3) (f), 67.05 (4), 67.05 (5) (a), 67.05 (6a) (a) 2. a., 67.05 (6m) (b), 67.10 (5) (b), 67.12 (12) (e) 2., 67.12 (12) (e) 5., 82.03 (2) (b), 85.61 (1), 86.21 (2) (a), 92.11 (4) (c), 117.20 (2), 119.48 (4) (b), 119.48 (4) (c), 119.49 (1) (b), 119.49 (2), 121.91 (3) (a), 197.04 (1) (b), 197.04 (2), 197.10 (2), 198.19 (1) and 343.027; to repeal and recreate 343.027; and to create 6.30 (5), 6.34 (2m), 6.34 (3) (a) 12., 6.34 (4), 6.35 (2), 8.065, 11.01 (6) (b) 8. and 9., 11.01 (7) (a) 5. to 7., 11.01 (7) (b) 6. to 8., 11.01 (12m), 11.05 (3) (q), 11.06 (11) (d), 11.06 (13), 11.066, 11.185, 11.20 (1m), 11.20 (3) (a) 2., 11.20 (3) (b) 2., 11.20 (3) (c) 2., 11.20 (3) (d) 2., 11.20 (3) (f) 2., 11.20 (3) (g) 2., 11.20 (3) (h) 2., 11.20 (3) (k) 2., 11.20 (3) (L) 2., 11.20 (4) (b), 11.26 (2) (ab), 11.26 (2) (ac), 11.26 (2) (ad), 11.26 (9) (a) 1. to 12., 11.26 (9) (b) 1. to 12., 11.26 (18), 11.33 (2m), 13.025, 13.62 (1) (b), 13.62 (12e), 13.68 (1) (bp), 19.42 (11s) and 227.52 (8) of the statutes; relating to: various changes in the campaign finance, election, ethics, and lobbying regulation laws and granting rule-making authority.

Analysis by the Legislative Reference Bureau

This substitute amendment makes the following changes to the campaign finance, election, ethics, and lobbying regulation laws:

campaign finance

Expenditures made to solicit contributions to a segregated fund

Current law permits any corporation, including a foreign corporation and a limited liability company, cooperative, or association, to establish, administer, and solicit contributions to a separate segregated fund set up by the corporation, cooperative, or association for the purpose of supporting or opposing a candidate for state or local office. Although current law prohibits the corporation, association, or cooperative from making a contribution to the segregated fund, the corporation, cooperative, or association may expend up to $500 annually for the purpose of soliciting contributions. Under this substitute amendment, the amount that a corporation, association, or cooperative may annually expend to solicit contributions to the segregated fund is the greater of $20,000 or 20 percent of the amount of contributions in the previous year to a segregated fund.

Contributions by corporations or cooperatives for certain purposes

Currently, corporations and cooperatives are prohibited from making contributions or disbursements (expenditures) generally in connection with campaigns for state or local office. This prohibition specifically includes contributions or disbursements to political parties. This substitute amendment creates an exception to the prohibition that permits a corporation or cooperative to make a contribution to a committee that is operated exclusively for the purpose of financing the purchase, lease, or maintenance of space for exclusive use by a political party or legislative campaign committee.

Contribution limits

Under current law, the limits for contributions by an individual or committee, other than a political party or legislative campaign committee, to a candidate's campaign are as follows:

1. For candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent, or justice, $10,000, except that a committee may contribute up to 4 percent of the disbursement level established under current law.

2. For candidates for state senator, $1,000.

3. For candidates for state assembly representative, $500.

4. For candidates for circuit judge in circuits having a population of more than 300,000, or candidates for district attorney in prosecutorial units having a population of more than 300,000, $3,000.

5. For candidates for circuit judge in other circuits or candidates for district attorney in other prosecutorial units, $1,000.

This substitute amendment doubles the limits for contributions by an individual or committee to candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent, justice, state senator, state assembly representative, circuit judge, and district attorney.

Under current law, the total amount that an individual may contribute annually to all candidates for state and local offices, and to persons who are required to register for campaign financing purposes, is $10,000. The substitute amendment increases that amount to $20,000.

Under current law, a political party may not receive more than $150,000 in value of its contributions in any biennium from committees, other than political party or legislative campaign committees. The substitute amendment increases that amount to $300,000.

Under current law, a political party may not receive more than $6,000 in value of its contributions annually from any specific committee, excluding a political party or legislative campaign committee. The substitute amendment increases that amount to $12,000.

The substitute amendment also increases the total value of contributions that a committee, other than a political party or legislative campaign committee, may make to a political party from $6,000 each year to $12,000 each year.

Under current law, no individual who is a candidate for state or local office may receive in contributions more than 65 percent of the value of the total disbursement level for the office for which he or she is a candidate during any primary and election campaign combined from all committees, including political party and legislative campaign committees. In addition, no individual who is a candidate for state or local office may receive in contributions more than 45 percent of the value of the total disbursement level 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. Consequently, the amount of the contributions that a candidate may receive from political party or legislative campaign committees is determined by subtracting the amount that represents 45 percent of the value of the total disbursement level from the amount that represents 65 percent of the disbursement level. The disbursement levels under current law do not restrict the total amount of disbursements that may be made by any candidate in any election, but are used only to calculate certain contribution limits.

This substitute amendment eliminates the disbursement levels and specifies the contribution limits for contributions from committees for state and local offices based on the 65 percent/45 percent formula under current law. In addition, the substitute amendment doubles the contribution limits from committees for candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, state superintendent, justice, state senator, state assembly representative, circuit judge, and district attorney.

Finally, the substitute amendment provides that, beginning on July 1, 2015, and every two years thereafter, the Government Accountability Board (GAB) will modify the contribution limits under the campaign finance laws to adjust for the change in the consumer price index for the preceding two-year period ending on December 31.

Communications by legislators

Currently, with certain exceptions, no person who is elected to state or local office and who becomes a candidate for national, state, or local office may use public funds for the cost of materials or distribution of 50 or more pieces of substantially identical material distributed during the period beginning on the first day for circulation of nomination papers as a candidate (or certain other dates for candidates who do not file nomination papers) and ending on the date of the election at which the person's name appears on the ballot, or on the date of the primary election at which the person's name so appears if the person is not nominated at the primary.

This substitute amendment provides that this prohibition does not apply to the cost of materials or distribution of a communication made by a member of the legislature to an address located within the legislative district represented by that member during the 45-day period following declaration of a state of emergency by the governor affecting any county in which the district is located if the communication relates solely to the subject of the emergency.

Internet political activity; individual and public communications

Currently, with certain exceptions, payments for political communications are subject to disclosure under the campaign finance law, regardless of the medium that is used to conduct the communications. Payments for Internet communications are treated like payments for other communications. Currently, the cost of news stories, political interviews, editorial commentary, or endorsements, regardless of the medium by which they are distributed, are not contributions or disbursements and therefore are not reportable. The costs of communications by an organization other than a political party or personal campaign committee that are limited to the organization's members, shareholders, or subscribers are generally not reportable. In addition, all services for a political purpose by an individual on behalf of a campaign finance registrant are not reportable and are not subject to the current prohibition on contributions and disbursements by corporations and cooperatives unless the individual performing the services is compensated specifically for those services.

This substitute amendment provides that any cost incurred to conduct Internet activity is not a contribution or disbursement, and is therefore not reportable if it is performed by an individual acting in his or her own behalf, or acting in behalf of another person, and if the individual is not compensated specifically for his or her services. This includes the cost or value of any equipment and services used by the individual to conduct the activity, but does not include professional video production services purchased by the individual. The substitute amendment similarly provides that any cost incurred in covering a news story, commentary, or editorial by a broadcasting station, cable television operator, producer, or programmer, Internet site, or newspaper or other periodical publication, including an Internet or other periodical publication, except the cost of a news story that appears in a medium that is owned by a candidate, candidate's authorized committee, or political party, is not a contribution or disbursement and is therefore not reportable. In addition, the substitute amendment provides specifically that the following are disbursements, and are therefore reportable: a) any payment for a communication to the general public for a political purpose except an Internet communication that is not a disbursement under the substitute amendment; b) any payment for the purchase or rental of an electronic-mail address list that is made at the direction of a campaign finance registrant for a political purpose; or c) any payment for an electronic-mail address list that is transferred to a registrant for a political purpose. The substitute amendment provides however, that the following are not disbursements, and are therefore not reportable: a) a communication or Internet activity by an individual acting in his or her own behalf, or acting in behalf of another person if the individual is not compensated specifically for those services, including the cost or value of any electronic equipment and services used by the individual to conduct the activity; or b) a nominal fee paid for a communication to the general public.

Electronic filing

Under current law, GAB must require each registrant for whom GAB serves as a filing officer under the campaign finance laws and who or which accepts contributions of $20,000 or more during a campaign period to file campaign finance reports electronically. In addition, GAB must accept campaign finance reports electronically from any other registrant for whom GAB serves as a filing officer. Current law requires GAB to specify, by rule, software that is suitable for complying with the electronic filing requirement and must provide the software to registrants at a price not to exceed its cost. Any registrant who or which files reports electronically with GAB must also submit a copy of the report to GAB and the copy must be signed by an authorized individual.

Under the substitute amendment, the software that GAB specifies for electronic filing must allow a registrant to provide an electronic signature that is subject to a security procedure. The substitute amendment also eliminates the requirement that a registrant who or which files a report electronically must file a copy with GAB. A registrant who or which files a report electronically may, however, file with GAB that portion of the report signed by an authorized individual rather than submit the electronic signature of that individual.

Itemized statement

Under current law, each person who is required to report under the campaign finance laws must include in the report an itemized statement regarding each contribution, disbursement, or obligation exceeding $20. The substitute amendment increases this threshold to $40.

Campaign finance reporting

Generally, under current law, registrants participating in a primary or election must file preprimary or preelection reports. Preprimary and preelection reports must be received by a filing officer no earlier than 14 days and no later than 8 days before the primary and election. Specifically, under current law: 1) a candidate or personal campaign committee of a candidate at a primary must file preprimary and preelection reports; 2) a candidate or personal campaign committee of a candidate at an election must file a preelection report; 3) a registered committee or individual other than a candidate or personal campaign committee making or accepting contributions or disbursements in support of or in opposition to a candidate at a primary or to a committee or individual engaging in such activities must file a preprimary and preelection report; 4) a registered committee or individual other than a candidate or personal campaign committee making or accepting contributions or disbursements in support of or in opposition to a candidate at an election or to a committee or individual engaging in such activities must file a preelection report; 5) a registered group or individual making or accepting contributions or making distributions in support of or in opposition to a referendum appearing on a primary ballot must file a preprimary and preelection report; and 6) a registered group or individual making or accepting contributions or making distributions in support of or in opposition to a referendum appearing on an election ballot must file a preelection report. Under current law, if any report is required to be filed on a nonbusiness day, the report may be filed on the next business day thereafter.

The substitute amendment retains the preprimary and preelection reporting requirements and the flexible filing date in the event that the filing date is a nonbusiness day.

The substitute amendment requires registrants participating in a spring primary or spring election to, annually, file reports on the fifteenth day of the month in the months of January, April, July, and October.

The substitute amendment requires those registrants participating in a partisan primary or general election to file reports on the fifteenth day of the month in the months of January, April, July, and October in an odd-numbered (nonelection) year and, in an even-numbered (election) year, on the fifteenth day of the month in the months of April and July and on the fourth Tuesday of September.

Currently, individuals and committees supporting or opposing candidates for office, and individuals, groups, and corporations supporting or opposing a referendum, must submit reports of contributions received, contributions or disbursements made, and obligations incurred to the appropriate filing officer twice each year: on or after January 1 but no later than January 31; and on or after July 1 but no later than July 20. This substitute amendment changes the reporting requirement as follows: 1) individuals and committees supporting or opposing candidates in a spring primary or election and individuals, groups, and corporations supporting or opposing a referendum appearing on a spring ballot must file reports on the fifteenth day of the month in the months of January, April, July, and October; 2) individuals and committees supporting or opposing candidates in a partisan primary or general election and individuals, groups, and corporations supporting or opposing a referendum appearing on a general election ballot must, in an odd-numbered (nonelection) year, file reports on the fifteenth day of the month in the months of January, April, July, and October and, in an even-numbered (election) year, file reports on the fifteenth day of the month in the months of April and July and on the fourth Tuesday of September.

Conduits; campaign finance reporting

Current law defines a conduit as an individual or organization that receives a contribution of money and transfers the contribution to another individual or organization without exercising discretion as to either the amount transferred or the individual to whom or organization to which the transfer is made. A transfer of money from a conduit is considered to be a transfer of money from the individual or organization that made the contribution to the conduit. Current law requires conduits to register with GAB; as a registrant, current law also requires a conduit to make financial reports related to contributions and distributions made or received by the conduit. Generally, financial reports must include an itemized statement giving the date, full name and street address of certain contributors, together with the amount of the contribution and the cumulative total contributions made by that contributor for the calendar year; the occupation and name and address of the principal place of employment, if any, of certain individual contributors; cumulative totals for the calendar year of contributions received by the registrant, and disbursements made, including transfers of funds made to or received from other registrants; and a statement of the registrant's cash balance on hand at the beginning and end of the reporting period.

This substitute amendment modifies the reporting requirements for conduits to conform with current GAB practice. Current GAB practice requires conduits to file, at each required reporting period, a summary report listing the date of the transfer of money, the complete name and address of each transferee, the total amount transferred to each transferee within the reporting period, and the total amount transferred during the calendar year. Current GAB practice also requires conduits to submit, along with the summary report, a copy of documentation submitted to each transferee. The documentation must: 1) clearly identify that the contribution is from a conduit; 2) identify the name and address of the transferee to whom contributions are transferred, the date the transfer was made, and the total amount transferred; 3) provide the complete name and home address of each individual contributor and the amount of his or her contributions, regardless of the amount; and 4) under certain circumstances, identify the contributor's occupation and the complete name and address of the contributor's principal place of employment.

The substitute amendment also requires conduits to report the beginning and ending balances of cash on hand for each reporting period.

Conduits; redirection of certain unclaimed contributions

The substitute amendment allows a conduit to redirect contributions made to the conduit but unclaimed for a period of two years to a committee, other than a personal campaign committee, a support committee, a political party, or a legislative campaign committee, that sponsors the conduit if there is such a committee or, if there is not such a committee, to the conduit's administrative fund. Prior to redirecting the unclaimed contribution, the conduit must make at least ten good faith attempts to contact the contributor over the two-year period without success. The conduit may attempt to contact the contributor by U.S. mail, by electronic mail, or by telephone. The required attempts to contact the contributor may not all occur within one 30-day period. The substitute amendment requires the conduit to identify the sponsor on the conduit's registration form and to include on the conduit's financial report when a contribution is redirected as provided in the substitute amendment.

election administration

Proof of residency for voter registration

With limited exceptions, current law requires each person who is an eligible elector and who wishes to vote in this state to first register. In certain circumstances, an eligible elector must submit proof of residence with his or her registration form or prior to being permitted to vote. (See also Electronic voter registration.) Current law provides a list of qualifying identifying documents and specifies the information that must appear on those documents. Identifying documents must contain the registrant's name and current address and qualifying identifying documents include a real estate tax bill, a bank statement, and a current and valid Wisconsin driver license or identification card.

The substitute amendment adds to the list of qualifying identifying documents a bill for cellular or wireless telephone service for the period commencing no earlier than 90 days before election day, a credit card statement for the period commencing no earlier than 90 days before election day, and a statement from a financial institution.

Residency of election officials

Current law generally requires election officials to be qualified electors of the municipality in which the officials serve. In addition, current law generally requires election officials who serve at a polling place to be qualified electors of the ward for which the polling place is established, whenever a municipality is divided into wards. However, special registration deputies who register electors at a polling place on election day, election officials who are appointed to work at a polling place that serves more than one ward, election officials who are reassigned by a municipal clerk or board of election commissioners to correct staffing deficiencies, or election officials who are appointed to fill a temporary or permanent vacancy need not be electors of any particular ward, but must be qualified electors of the municipality in which they serve. Officials who are appointed to work at a polling place that serves more than one ward must be electors of one of the wards served by the polling place. A high school pupil who is 16 or 17 years of age may serve as an inspector (poll worker) at the polling place serving his or her residence. In addition, if the municipal clerk or the executive director of a board of election commissioners or a deputy to the clerk or executive director serves as a special registration deputy or is appointed to work at a polling place to fill a vacancy in an inspector position, the clerk, executive director, or deputy need not be a resident of the municipality in which he or she serves. This substitute amendment permits, for up to 50 percent of the positions to be filled, a political party officer to specify the ward for which an individual is nominated to serve. The substitute amendment requires municipalities to appoint individuals who are nominated to serve in a specified ward in the ward for which they are nominated for at least 50 percent of the positions to be filled, unless GAB or the attorney general permits nonappointment for good cause shown. The substitute amendment permits a nominee whose nonappointment is authorized by GAB to appeal the decision of GAB to the attorney general, who may affirm or reverse the decision of GAB.

Under the substitute amendment, a high school pupil may serve as an inspector at a polling place located in the county in which the pupil's residence is located.

Electronic voter registration

Currently, a qualified elector may register to vote at any election by mail, in person at the office of the municipal or county clerk or board of election commissioners for the municipality or county where the elector resides, or by completing a registration form with a special registration deputy no later than the twentieth day before the election. A qualified elector may also register to vote at an election in person at the office of the municipal clerk or board of election commissioners for the municipality where the elector resides no later than 5 p.m. on the Friday before the election. To register, an elector must provide his or her name and address and certain other information required to ascertain his or her eligibility and must sign the form. With certain exceptions, an elector who registers after the twentieth day before an election or an elector who registers by mail and who has not voted before in an election in this state must provide proof of residence prior to voting. Currently, the clerk or board of election commissioners must verify each registration received by mail or submitted by a special registration deputy by sending a first-class letter or postcard to the registrant at the registrant's address.

This substitute amendment permits a qualified elector who has a current and valid driver's license or identification card issued by the Department of Transportation (DOT) to register to vote at an election electronically on a secure Internet site maintained by GAB. The substitute amendment requires an electronic registration to be completed no later than the twentieth day before an election in order to be valid for that election. Under the substitute amendment, a qualified elector enters the same information that appears on the current registration form and authorizes DOT to forward a copy of his or her electronic signature to GAB. The authorization affirms that all information provided by the elector is correct and has the same effect as if the elector signed the form personally. The substitute amendment also permits an elector who is currently registered to vote and who has a current and valid driver's license or identification card to electronically enter a change of name or address using a similar procedure. In accordance with the existing procedure for verifying registrations that are not received at the office of the municipal clerk or board of election commissioners, the substitute amendment provides that when an electronic registration is received, GAB or the clerk or board of election commissioners of the elector's municipality of residence must verify each electronic registration by sending a first-class letter or postcard to the registrant at the registrant's address. Except as otherwise permitted under the substitute amendment, if the registrant is voting for the first time in an election in this state, the registrant must provide proof of residence before voting in the election. The substitute amendment creates one exception which provides that, if an elector who registers electronically provides his or her Wisconsin driver's license number, together with his or her name and date of birth, and GAB can verify the information electronically at the time of registration by electronically accessing DOT's records, the elector need not provide proof of residence prior to voting. The substitute amendment directs GAB and DOT to enter into an agreement that permits GAB to verify the necessary information instantly by accessing DOT's electronic files.

Currently, each municipal clerk and board of election commissioners must maintain a file of voter registration forms for the electors of the municipality. This substitute amendment provides that the clerk or board must maintain registrations that are entered electronically in the manner prescribed by GAB, by rule.

Verification of certain loans made to registrants

This substitute amendment provides that if any campaign finance registrant reports that the registrant has received a loan in amount exceeding $10,000, GAB must, upon request of any individual, require the registrant to substantiate the source and amount of the loan. Currently, GAB requires substantiation only in connection with a routine audit or an investigation of possible unlawful activity.