SB113: Bill Text

LRB-2225/4

JTK&JK:cmh:km

1999 - 2000 LEGISLATURE

1999 Senate BILL 113

April 7, 1999 - Introduced by Senators Ellis, Rude, Farrow and Panzer. Referred to Committee on Agriculture, Environmental Resources and Campaign Finance Reform.

SB113,2,9 An Act to repeal 11.01 (12s), 11.05 (3) (o), 11.26 (9) (c), 11.265, 11.31 (1) (b), 11.31 (2m), 11.31 (3), 11.31 (3m), 11.31 (4), 11.50 (2) (i), 11.50 (3), 11.50 (6), 20.855 (4) (b) and 71.10 (3); to renumber and amend 11.12 (6), 11.26 (9) (a), 11.26 (10), 11.50 (2) (b) 5. and 11.50 (9); to amend 5.02 (13), 5.02 (18), 7.08 (2) (c) and (cm), 8.35 (4) (b), 10.02 (3) (b) 2m., 11.01 (5m), 11.05 (3) (c), 11.05 (9) (b), 11.06 (2), 11.06 (7m) (a), 11.06 (7m) (c), 11.09 (3), 11.12 (5), 11.16 (5), 11.20 (2m), 11.20 (3) (d), 11.20 (3) (g), 11.20 (8) (intro.), 11.20 (12), 11.21 (15), 11.26 (1) (intro.), 11.26 (2) (intro.), 11.26 (2) (a), 11.26 (4), 11.26 (8), 11.26 (9) (b), 11.26 (13), 11.26 (17) (a), 11.31 (1) (a), 11.31 (1) (c) and (d), 11.31 (1) (e) and (f), 11.31 (2), 11.31 (7) (a), 11.50 (title), 11.50 (1) (b), 11.50 (2) (a), 11.50 (2) (b) (intro.), 11.50 (2) (g), 11.50 (5), 11.50 (9) (title), 11.50 (11) (e), 11.61 (1) (a), 11.61 (1) (a), 11.61 (1) (b), 11.61 (1) (b), 11.61 (1) (c), 14.58 (20), 20.510 (1) (q), 25.17 (1) (ys), 25.42 and chapter 77 (title); to repeal and recreate 11.50 (4); and to create 11.01 (16) (a) 3., 11.05 (3) (d), 11.12 (6) (b) to (d), 11.12 (7), 11.20 (2e), 11.20 (2s), 11.20 (2t), 11.20 (8) (ak) and (aL), 11.20 (8) (am), 11.20 (8) (an), 11.24 (1t), 11.24 (1w), 11.26 (1m), 11.26 (9) (a) 1. to 5., 11.26 (9) (aa), 11.26 (9) (am), 11.26 (10) (a) 1. to 5. and (b), 11.26 (10a), 11.31 (3p), 11.31 (7) (e), 11.31 (9), 11.50 (2) (b) 5. a. to e., 11.50 (2) (bm), 11.50 (9) (a) 1. to 5., 11.50 (9) (b), 11.50 (9) (ba), 11.50 (9) (bb), 11.50 (9a), 11.60 (3s) and (3t), 11.61 (1) (d), 11.62, 20.855 (4) (ba), 20.855 (4) (bb) and subchapter XIII of chapter 77 [precedes 77.997] of the statutes; relating to: campaign financing, imposition of a lobbying expenditure tax, providing exemptions from emergency rule procedures, granting rule-making authority, making appropriations and providing penalties.

Analysis by the Legislative Reference Bureau

This bill makes numerous changes in the campaign finance law and imposes a tax on lobbying expenditures. Significant changes include:

Filing of campaign finance reports

Currently, a committee making contributions or a candidate or other individual or committee accepting contributions, making disbursements (expenditures) or incurring obligations in support of or opposition to a candidate is generally required to file a report no later than the eighth day before a primary or election at which the candidate seeks nomination or election to office. The report must disclose contributions made or accepted, disbursements made and obligations incurred through the 14th day prior to the primary or election.

Currently, if a candidate for state office receives one or more contributions from a single contributor aggregating $500 or more during the 14-day period preceding an election, the candidate must report to the elections board the information currently required to be disclosed pertaining to contributions received by the candidate no later than 24 hours following receipt of any such contribution or contributions.

Currently, if an individual or organization receives a political contribution consisting of money and transfers the contribution to another individual or organization without exercising discretion as to the amount to be transferred and the individual to whom or the organization to which the transfer is to be made, the contribution is considered to be made by the original contributor for purposes of reporting by the ultimate recipient. The contribution is also treated as an individual contribution for purposes of determining contribution limitations and qualifying contributions for public grants. The individual or organization making the transfer is called a "conduit" under the law. A conduit must identify itself to the ultimate recipient as a conduit and provide to that recipient the information about the contribution that is necessary for the recipient to file its campaign finance reports.

This bill requires each conduit that has accepted or intends to accept any contribution to be transferred to a candidate for a major state office (governor, lieutenant governor, attorney general, secretary of state, state treasurer, state superintendent of public instruction, justice of the supreme court, state senator or representative to the assembly) at the general election or a special election to report to the elections board, in the case of the general election, on the 63rd, 42nd and 21st day prior to that election, and in the case of a special election, on the 21st day prior to that election, specifying the name of each candidate to whom the conduit intends to transfer any contribution during the 21-day period following the date on which the report is due to be filed and the amount to be transferred to that candidate.

The bill similarly requires each committee, other than a conduit, that intends to receive any contribution, make any disbursement or incur any obligation to make a disbursement for the purpose of advocating the election or defeat of a candidate for a major state office at the general election or a special election independently of any candidate who is supported or whose opponent is opposed to report to the elections board on the 63rd, 42nd and 21st day prior to that election, and in the case of a special election, on the 21st day prior to that election, specifying the name of each candidate who is supported or whose opponent is opposed and the total amount of contributions to be received, disbursements to be made and obligations to be incurred for that purpose during the 21-day period following the date on which the report is due to be filed.

The bill also requires conduits and committees other than conduits who or which are subject to these special reporting requirements to file additional reports on the 39th and 18th days preceding each general election and the 18th day preceding each special election itemizing actual contributions transferred and received, disbursements made and obligations incurred during the 21-day periods ending on the 42nd and 21st days preceding the election.

In addition, the bill provides that if a candidate for a major state office at the general or a special election does not enter into an agreement to accept a public grant in return for abiding by disbursement limitations and contribution restrictions, the candidate must report to the elections board all information currently required to be disclosed pertaining to any contributions received by the candidate no later than 24 hours following receipt of any contribution or contributions after that candidate receives total contributions equal to more than the following amounts during his or her campaign, or if the candidate has an opponent whose name is certified to appear on the ballot as a candidate for the party nomination of his or her party in a primary election in that campaign, during the period beginning after the date of that primary election:

1. For candidates for the offices of governor and lieutenant governor jointly, $330,000 from all political party committees or $1,670,000 from all individuals.

2. For a candidate for the office of attorney general, $65,000 from all political party committees or $200,000 from all individuals.

3. For a candidate for the office of secretary of state or state treasurer, $33,000 from all political party committees or $167,000 from all individuals.

4. For a candidate for the office of justice or state superintendent, $100,000 from all individuals.

5. For a candidate for the office of state senator, $25,000 from all political party committees or $125,000 from all individuals.

6. For a candidate for the office of representative to the assembly, $12,500 from all political party committees or $62,500 from all individuals.

Under the bill, these amounts are subject to a biennial cost-of-living adjustment beginning in 2002, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

The bill also requires each candidate at the general election, and each committee or individual making disbursements or incurring obligations in support of or in opposition to a candidate at the general or a special election, to file an additional report on the tenth day after the election.

Mass media activities

Currently, individuals who accept contributions, organizations that make or accept contributions, and individuals who or organizations that incur obligations or make disbursements for the purpose of influencing an election for state or local office are generally required to register with the appropriate filing officer and to file financial reports with that officer, regardless of whether they act in conjunction with or independently of any candidate who is supported or opposed.

This bill requires each individual who and organization that makes a communication by means of a newspaper, periodical, commercial billboard or radio or television station, other than a communication by a corporation, cooperative or nonpolitical voluntary association limited to its members, shareholders or subscribers, during the period beginning on the 60th day preceding an election and ending on the date of that election which includes a reference to a candidate at that election, an office to be filled at that election or a political party to register with the appropriate filing officer and to file financial reports with that officer to the same extent as currently required of individuals who and organizations that engage in activity for the purpose of influencing elections.

Disbursement limitations

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 who declines to accept one and declines to file an affidavit of voluntary compliance with disbursement and contribution limitations. Under current law, the disbursement limitations apply to a candidate's entire primary and election campaign combined. 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.

This bill:

1. Eliminates disbursement levels and limitations applicable to candidates for state office, except the offices of court of appeals judge, circuit judge and district attorney, on or before the date of the primary election for those offices.

2. Revises the current disbursement levels applicable to candidates for the offices shown in the following chart: - See PDF for table

3. Provides that disbursement limitations do not apply until after the date of a primary election for a candidate who has an opponent whose name appears on the ballot as a candidate for the nomination of his or her party at the primary election.

4. Creates a biennial cost-of-living adjustment that causes the statutory disbursement levels to be adjusted biennially, beginning in 2002, in accordance with a formula tied to the "consumer price index" determined by the U.S. department of labor.

5. Deletes current law that permits a candidate who does not accept a grant to continue to bind an opponent to disbursement and contribution limitations by filing an affidavit of voluntary compliance.

6. Deletes current law that makes disbursement limitations inapplicable to a candidate who accepts a grant when the candidate has an opponent who could have qualified for a grant but declines to accept one, and who declines to file an affidavit of voluntary compliance with disbursement and self-contribution limitations. However, the bill increases the disbursement limitation of the candidate who accepts a grant by an amount equal to 1) the amount of any contributions that are received by committees for the purpose of making independent disbursements to oppose that candidate or to support that candidate's opponent; 2) the total amount of contributions that conduits report they have transferred or intend to transfer to opposing candidates; and 3) the total amount of contributions accepted by opposing candidates above the level for which 24-hour reports are required (see below).

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.

This 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.

Contribution limitations

Current law specifies limitations on the maximum amount of contributions that may be given to and accepted by a candidate for state or local office from any single individual or committee. Under current law, a candidate who receives a grant may make contributions to his or her own campaign in an amount or value not exceeding 200% of the limitation applicable to other individuals making contributions to his or her campaign. 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 that 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.

This bill deletes the current aggregate limitations on contributions that may be received from committees and instead imposes an aggregate contribution limitation on the total amount or value of contributions that a candidate who accepts a grant may accept from all committees, including political party committees, during the entire campaign of the candidate, or if the candidate has an opponent for the nomination of his or her party at a primary election, after the date of the primary election, as follows:

1. For candidates for the offices of governor and lieutenant governor jointly, $330,000.

2. For a candidate for the office of attorney general, $65,000.

3. For a candidate for the office of secretary of state, state treasurer, justice or state superintendent, $33,000.

4. For a candidate for the office of state senator, $25,000.

5. For a candidate for the office of representative to the assembly, $12,500.

The bill also imposes an aggregate contribution limitation on the total amount or value of contributions that a candidate who accepts a grant may accept from all individuals, including contributions by an individual to his or her own campaign, during the entire campaign of the candidate, or if the candidate has an opponent for the nomination of his or her party at a primary election, after the date of the primary election, as follows:

1. For candidates for the offices of governor and lieutenant governor jointly, $1,000,000.

2. For a candidate for the office of attorney general, $200,000.