LRB-1012/2
JTK/JS/MES:kmg:ch
1997 - 1998 LEGISLATURE
January 15, 1997 - Introduced by Senators Adelman, Wineke, Clausing, Burke
and Jauch, cosponsored by Representatives Bock, Notestein, Black, Vander
Loop
and R. Young. Referred to Committee on Judiciary, Campaign Finance
Reform and Consumer Affairs.
SB7,2,17 1An Act to repeal 8.16 (5), 11.01 (12s), 11.05 (3) (o), 11.265, 11.31 (4), 15.07 (1) (a)
22. and 19.42 (10) (a); to renumber 11.24 (2); to renumber and amend 11.12
3(6), 11.26 (9) (c) and 11.50 (9); to amend 5.02 (13), 5.05 (1) (b), 7.08 (2) (c) and
4(cm), 8.35 (4) (a) 1. a. and b., 10.02 (3) (b) 2m., 11.05 (3) (c), 11.05 (9) (b), 11.06
5(1) (a), 11.06 (1) (e), 11.06 (2), 11.06 (7m) (a), 11.06 (7m) (c), 11.06 (11) (c), 11.07
6(5), 11.12 (2), 11.16 (2), 11.16 (5), 11.19 (title) and (1), 11.21 (15), 11.23 (2), 11.26
7(1) (intro.), 11.26 (2) (intro.), 11.26 (4), 11.26 (8), 11.26 (9) (a) and (b), 11.26
8(12m), 11.31 (1) (a) to (d), (e) and (f), 11.31 (2), 11.31 (3), 11.38 (6), 11.50 (1) (a)
91. and 2., 11.50 (2) (b) 5., 11.50 (2) (c) and (d), 11.50 (2) (f), 11.50 (2) (i), 11.50 (3)
10(a) (intro.), 11.50 (3) (a) 1. and 2., 11.50 (4) (c), (cm) and (d), 11.50 (6), 11.60 (1),
1111.61 (1) (a), 13.14 (3), 13.20 (1), 15.61, 20.510 (1) (q), 20.923 (6) (h), 25.42, 71.10
12(3) (a), 71.26 (1) (a) and 230.08 (2) (f); to repeal and recreate 11.31 (3m); and
13to create 11.05 (3) (m), 11.05 (3) (q) and (r), 11.095, 11.12 (6) (b), 11.19 (1m) and
14(6), 11.21 (16), 11.24 (3) and (4), 11.26 (9) (c) 2., 11.31 (1m), 11.31 (9), 11.50 (2)

1(bm), 11.50 (2m), 11.50 (3) (c), 11.50 (4) (e), 11.50 (9) (b), 11.60 (3m), 20.510 (1)
2(d), 20.510 (1) (i), 71.05 (6) (a) 20., 71.07 (5) (a) 8., 71.26 (2) (b) 1g., 71.26 (3) (e)
34., 71.34 (1) (ad) and 71.45 (2) (a) 15. of the statutes; relating to: designations
4for the Wisconsin election campaign fund by individuals filing state income tax
5returns, income and franchise tax deductions for certain business expenses
6related to lobbying, public information related to the Wisconsin election
7campaign fund, eligibility requirements for and the amounts of grants from the
8Wisconsin election campaign fund, disbursement levels for candidates for
9certain state offices, independent disbursements in support of or opposition to
10candidates for certain state offices, contribution restrictions and limitations,
11treatment of legislative campaign committees, disposition of residual or excess
12campaign funds, regulation of certain telephoning activities pertaining to
13elections, information provided on campaign finance registration statements,
14electronic filing of campaign finance reports with the elections board,
15composition of the elections board, elimination of legislative partisan caucus
16staffs, providing an exemption from emergency rule procedures, granting
17rule-making authority, making appropriations and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill makes numerous changes in the campaign financing law. Significant
changes include:
Disbursement limitations and
independent disbursements
Under current law, disbursement (expenditure) levels are specified for
candidates for various state and local offices. These levels become a binding
limitation upon any candidate for state office who accepts a state grant from the
Wisconsin election campaign fund or who agrees to be bound by the limitation, unless
the candidate is opposed by a major opponent who could have qualified for a grant
but declines to accept one. Additionally, the disbursement levels for candidates for
the offices of state senator and representative to the assembly are subdivided

between the primary and election campaign periods in such a way that only about
60% of the total applicable disbursement level for either office may be allocated by
a candidate to either the primary or the election campaign period. A candidate for
state office who accepts a grant from the Wisconsin election campaign fund and who
agrees to be bound by the disbursement limit applicable to the office which the
candidate seeks may receive a grant equal to 45% of that disbursement limit, less
certain committee contributions accepted by the candidate, if there are sufficient
moneys in the fund to finance the full amount of grants for which candidates qualify.
Current law also imposes registration and financial reporting requirements on
committees and individuals making disbursements independently of a candidate in
support of or in opposition to a candidate for a state or local office. One requirement
is the obligation of the committee or individual to inform the appropriate filing officer
within 24 hours of making such a disbursement, if the cumulative amount of such
disbursements made by the committee or individual later than 15 days prior to a
primary or election exceeds $20.
The bill:
1. Eliminates the disbursement limitation, applicable to candidates for the
offices of state senator and representative to the assembly, that requires the overall
limitation to be subdivided between the primary and election campaign periods in
such a way that only about 60% of the statutory disbursement level is allocated to
either the primary or election campaign period.
2. Revises the current disbursement levels applicable to candidates for the
offices shown in the following chart: - See PDF for table PDF
3. Increases disbursement levels for candidates who are challenging
incumbent officeholders to 125% of the statutory disbursement levels. This
additional authorization does not increase the maximum grant which a candidate
may receive from the Wisconsin election campaign fund.
4. Authorizes a candidate to make disbursements exceeding statutory
disbursement limits to the extent of independently incurred obligations and
disbursements in opposition to his or her candidacy or in support of his or her
opponent, if the obligations and disbursements exceed $250 cumulatively.

5. Replaces the provision requiring reports of cumulative independent
disbursements exceeding $20 made later than 15 days prior to a primary or election
with a provision that requires a committee which or an individual who makes
disbursements or incurs obligations independently of a candidate to inform the
appropriate filing officer no later than 21 days (14 days in the case of a primary or
election that is not held concurrently with the spring or September primary or spring
or general election) prior to the activity which the committee or individual intends
to fund with cumulative disbursements or obligations of more than $250.
6. Creates a biennial cost-of-living adjustment that causes the statutory
disbursement levels to be adjusted biennially, beginning in 1999, in accordance with
a formula tied to the "consumer price index" determined by the U.S. department of
labor.
Contribution limitations
Current law specifies limitations on the maximum amount of contributions
which may be given to and accepted by a candidate for state or local office. Current
law also limits the total contributions that a candidate for state or local office may
accept from all political committees, including political party and legislative
campaign committees, and from the Wisconsin election campaign fund to 65% of the
value of the statutory disbursement level specified for the office which the candidate
seeks. The total amount that a candidate may accept from committees other than
political party and legislative campaign committees and from the Wisconsin election
campaign fund is limited to 45% of that disbursement level.
The bill changes the current limitation on total contributions of 45% of a
candidate's disbursement level, for the office which the candidate seeks, that a
candidate may accept from committees other than political party and legislative
campaign committees to a limitation of 15% of a candidate's disbursement level that
a candidate may accept from committees other than political party committees.
However, the bill does not change the limitation on the total grant that a candidate
for state office may receive from the Wisconsin election campaign fund. Under the
bill, grants from the Wisconsin election campaign fund are not subject to the 15%
limitation.
Treatment of legislative
campaign committees
Currently, the adherents of any political party in either house of the legislature
may organize a "legislative campaign committee" to support the candidacy of
members of their party for legislative office. Committees other than legislative
campaign committees and political party committees are generally subject to a
limitation upon the contributions that they may make to candidates for legislative
office or to political parties. Legislative campaign committees are subject only to
overall limitations on the aggregate contributions that may be accepted by a
candidate from entities other than individuals.
The bill eliminates the special status of legislative campaign committees, thus
treating them in the same manner as other special interest committees for the
purpose of contribution limitations.

Other Contribution Restrictions
The bill creates the following new prohibitions on contributions:
1. It prohibits contributions by individuals under the age of 18 years to any
candidate for a statewide office, state senator or representative to the assembly.
2. It prohibits contributions to incumbents who are seeking reelection to a
partisan state office from the first Monday in January of each odd-numbered year
through the enactment of the biennial budget act and, thereafter, during any
floorperiod, including any special or extraordinary session floorperiod. The
prohibition does not apply to contributions made to an incumbent who is subject to
a recall election from the date on which the petition for a recall election is filed until
the date of the recall election.
Contributions through conduits
Under current law, a "conduit" is an individual or organization that receives a
contribution and transfers the contribution to another individual or organization
without exercising discretion as to the amount that is transferred and the individual
to whom or the organization to which the transfer is made. When a conduit transfers
a contribution, the conduit is required to identify itself in writing to the transferee
as a conduit and to report to the transferee information about the original
contributor. The conduit must include this information in its financial reports for the
date on which the contribution was received and transferred. The campaign
financing reports filed by the candidate identify only the original contributor, not the
conduit. A contribution from a conduit is considered to be a contribution from the
original contributor and, for the purpose of contribution limitations, a contribution
of money received from a conduit which is properly identified and reported is
considered to be a contribution received from the original contributor. Contributions
received by a candidate for state office from an individual through a conduit may be
used to qualify for a grant from the Wisconsin election campaign fund.
The bill requires the campaign financing reports filed by candidates to identify
any conduit from whom a contribution is received, as well as the original contributor.
The bill also treats conduits in the same manner as "political action
committees" by:
1. Not allowing contributions made by an individual through a conduit to be
used to qualify for a grant from the Wisconsin election campaign fund.
2. Applying to contributions transferred by conduits the proposed 15% limit
which applies to cumulative contributions that a candidate may accept from all
committees other than political party committees.
3. Reducing the maximum grant that a candidate may receive from the
Wisconsin election campaign fund by the total amount of all contributions received
by the candidate through conduits.
Disposition of residual or excess funds
Under current law, residual funds remaining when a person who is required to
register under the campaign financing law disbands or ceases incurring obligations,
making disbursements or accepting contributions or excess funds received by a
registrant that may not be legally expended may generally be used for any lawful

political purpose, returned to the original contributors or donated to a charitable
organization or the common school fund.
The bill allows residual or excess funds to be transferred to the Wisconsin
election campaign fund. The bill also requires residual contributions received by a
personal campaign committee formed to support the campaign of a partisan state
officeholder who seeks election to another office and, subsequently, decides not to run
for that other office, which exceed 10% of the statutory disbursement level for the
office that the candidate holds, to be either returned to the donors or transferred to
the Wisconsin election campaign fund. In addition, the bill limits the amount of
contributions which remain unencumbered after December 31 of an even-numbered
year that a candidate for partisan state office or such a candidate's personal
campaign committee may carry over from a general election campaign to another
campaign to not more than15% of the candidate's disbursement level. Under the bill,
contributions in excess of that amount must be transferred to the Wisconsin election
campaign fund.
Persuasive telephoning
The bill requires all persons (including political committees and groups) who
engage in or retain a telephone bank operator to engage in persuasive telephoning
with respect to an election to disclose certain information to the appropriate filing
officer or agency for campaign finance reporting purposes. The bill defines
"persuasive telephoning" as "contacting, by telephone, potential voters for the
purpose of presenting them with information or viewpoints which could influence the
attitudes of the voters toward candidates or referenda". Information that must be
reported includes the name and address of the person; the name and address of any
telephone bank operator who is retained; the amount paid to any such operator for
the telephoning services; the total amount expended by the person to conduct
persuasive telephoning; and if the person engaged in or retained an operator to
engage in persuasive telephoning in more than one legislative district, the amount
expended by the person within each legislative district for persuasive telephoning
on behalf of each candidate or each personal campaign committee of a candidate for
legislative office in that district.
The bill requires the information to be reported at the same time as regular
campaign finance reports are filed. In addition, before beginning persuasive
telephoning, any person who proposes to engage in or to retain a telephone bank
operator to engage in such telephoning must file with the appropriate filing officer
or agency a report that the person will be conducting persuasive telephoning. That
officer is then directed to contact each candidate who is opposed by the telephoning
to provide that information. The report must be filed before the telephoning is begun
or, if an election is scheduled within 3 days of that time, at least 24 hours before the
telephoning is begun.
The bill requires every person who engages in or retains a telephone bank
operator to engage in persuasive telephoning to provide to the elections board, upon
request, a copy of any question that was asked, in substantially identical form, of
more than one individual during the telephoning.

The bill requires each campaign finance registrant who or which does not
engage in or retain any other person to engage in persuasive telephoning to file a
statement to that effect with the appropriate filing officer or agency.
Under current law, the amount paid for any telephoning services done for the
purpose of influencing the election or nomination of a candidate at an election is
generally subject to disclosure by the person making payment for the services,
together with the name and address of the payee. The disclosure is made to the
appropriate filing officer or agency on regular campaign finance reports.
The bill also requires each candidate or personal campaign committee of a
candidate to disclose to the appropriate filing officer or agency the telephone number
and facsimile transmission number, if any, at which the candidate may be contacted.
In addition, the bill empowers the elections board, upon showing of probable
cause to believe there is a violation of the campaign finance law, to obtain a search
warrant to inspect records of a telecommunications utility. Currently, the board has
no such authority.
Any person who violates these provisions in respect to a telephone
communication in which the caller engages in persuasive telephoning is subject to
a forfeiture (civil penalty) of $1,000, or $1 for each communication that is subject to
disclosure which the person fails to disclose in a timely manner, whichever is greater.
Wisconsin election campaign fund:
sources and uses of funds
Under current law, the Wisconsin election campaign fund is 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 $1 of general
purpose revenue be transferred to the fund. Individuals filing a joint return may
separately choose whether to direct that the $1 transfer be made. All moneys
transferred to the fund are placed in accounts for specified state offices, and
candidates for those offices may qualify for grants from the fund to be used for
specified campaign expenses. No moneys in the fund may be used for any other
purpose.
The bill:
1. Increases the amount of the individual income tax checkoff for the Wisconsin
election campaign fund from $1 to $3. Under the bill, individuals filing a joint return
may separately choose whether to make the $3 checkoff.
2. Eliminates a current state income and franchise tax deduction for certain
business expenses that lobbyists incur. Currently, this deduction may be claimed for
expenses incurred in direct connection with: a) appearances before, submission of
statements to, or sending communications to a federal, state or local legislative body,
a legislative committee or an individual legislator with respect to legislation or
proposed legislation of direct interest to a taxpayer; or b) communications between
a taxpayer and an organization of which the taxpayer is a member with respect to
legislation or proposed legislation of direct interest to the taxpayer and the
organization. Under the bill, dues paid to any organization remain deductible to the
extent that they are attributable to expenses of these activities.

3. Authorizes the state elections board to set aside an amount not exceeding 5%
of the moneys transferred to the Wisconsin election campaign fund in each year,
before distributions are made to candidate office accounts, to provide public
information concerning the purpose and effect of the fund and the income tax
checkoff for the fund. As part of the public information program, the board must
prepare an easily understood description of the purpose and effect of the fund and
the tax checkoff. The department of revenue is required to include and highlight the
description in its income tax preparation instructions related to the tax checkoff.
4. Provides a sum sufficient appropriation from general purpose revenue to
supplement the amounts otherwise available for campaign financing through the
Wisconsin election campaign fund so as to enable all eligible candidates to receive
the maximum grants for which they qualify.
The tax changes made by the bill first apply to tax returns for taxable years
commencing on or after January 1, 1998.
Grant Eligibility
Requirements and Amounts
Under current law, public financing from the Wisconsin election campaign fund
is available to eligible candidates for the offices of state senator, representative to the
assembly, governor, lieutenant governor, attorney general, state treasurer, secretary
of state, justice of the supreme court and superintendent of public instruction. To
receive a grant, a candidate must file an application with the state elections board
no later than the deadline for filing nomination papers. Following the primary
election or the date on which a primary would be held, if required, the board
determines which applicants meet the following eligibility requirements:
1. A candidate for a partisan state office at a general election must have
received at least 6% of the total votes cast in the primary and won the primary. A
candidate for a partisan state office at a special election must either: a) appear on
the ballot or in the column of a political party whose candidate for the same office at
the preceding general election received at least 6% of the vote; or b) receive at least
6% of the votes cast at the special election.
2. The candidate must have an opponent in the election.
3. The candidate must receive, during a specified time period, a specified
amount through contributions from individuals of $100 or less. For a candidate for
the office of governor, lieutenant governor, secretary of state, state treasurer,
attorney general, justice of the supreme court or superintendent of public
instruction, the amount is 5% of the authorized disbursement level for the office
which the candidate seeks. For a candidate for the office of state senator or
representative to the assembly, the amount is 10% of the authorized disbursement
level for the office which the candidate seeks.
Under current law, a candidate for any office who accepts a grant must comply
with statutorily prescribed contribution and disbursement limitations, unless one or
more of the candidate's opponents who receive at least 6% of the votes cast for all
candidates for that office at the primary, if a primary was held, do not accept a grant
and do not voluntarily comply with the contribution and disbursement limitations
for that office. The maximum grant that a candidate may receive is that amount

which, when added to all other contributions accepted from sources other than
individuals, political party committees and legislative campaign committees, is
equal to 45% of the authorized disbursement level for the office which the candidate
seeks.
The bill:
1. Eliminates the requirement that, to be eligible to receive a grant from the
Wisconsin election campaign fund, a candidate for a partisan state office must
receive at least 6% of the total votes cast in the primary election. Also, it eliminates
the 6% vote requirement for such a candidate at a special election.
2. Provides that the contributions of $100 or less from individuals used to
determine eligibility for a grant from the Wisconsin election campaign fund must be
made by individuals who reside in the state.
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