SB718: Bill Text

LRB-4987/1

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2005 - 2006 LEGISLATURE

2005 Senate BILL 718

April 28, 2006 - Introduced by Senator Erpenbach, cosponsored by Representative Freese. Referred to Committee on Campaign Finance Reform and Ethics.

SB718,1,10 An Act to repeal 11.50 (3) (a) 2.; to amend 8.35 (4) (b), 11.12 (2), 11.16 (2), 11.16 (3), 11.26 (1) (a), 11.26 (2) (a), 11.26 (9) (a), 11.26 (9) (b), 11.26 (13), 11.31 (1) (d), 11.50 (1) (a) 1. and 11.50 (3) (b); and to create 11.01 (14m), 11.24 (4m), 11.26 (1) (am), 11.26 (2) (an), 11.26 (9) (ba), 11.501 to 11.522, 19.45 (8) (d), 19.45 (8m), 20.510 (1) (r), 20.585 (1) (q), 20.585 (1) (r), 20.855 (4) (bb), 25.17 (1) (cm) and 25.421 of the statutes; relating to: public financing of campaigns for the office of justice of the supreme court, fund raising during state budget consideration, representation by former state officials, service by former legislators or legislative employees as lobbyists, making appropriations, and providing penalties.

Analysis by the Legislative Reference Bureau

This bill makes various changes in state laws relating to public financing of campaigns for the office of justice of the supreme court, fund raising during state budget consideration, representation by former state officials, and service by former legislators or legislative employees as lobbyists.

Public financing of campaigns for justice of the supreme court

This bill makes numerous changes in the campaign finance law affecting campaigns for the office of justice of the supreme court. The bill limits the application of the Wisconsin election campaign fund, under which eligible candidates for state offices (except district attorney, court of appeals judge, and circuit judge) may receive public grants from state general purpose revenues derived from designations made by individuals filing state income tax returns, to state offices other than the office of justice of the supreme court. To finance elections for the office of justice of the supreme court, the bill creates a democracy trust fund, under which eligible candidates for this office may receive public grants derived from general purpose revenues.

Under the bill, a candidate for the office of justice of the supreme court may qualify for public financing from the democracy trust fund to finance a campaign in a primary or election by receiving qualifying contributions of at least $5 but not more than $100 each made by electors of the state in an aggregate amount of at least $5,000 but not more than $15,000. A candidate who accepts public financing may also accept "seed money" contributions in amounts of $100 or less, subject to aggregate limitations, and may contribute personal funds in specified amounts during specified periods. In order to qualify for a public financing benefit for the primary, a candidate at the primary must have an opponent who qualifies to have his or her name appear on the ballot at the primary, and in order to qualify for a public financing benefit for the spring election, a candidate at the election must have an opponent who qualifies to have his or her name appear on the ballot at the election. A candidate who accepts public financing may not accept any contributions other than qualifying and seed money contributions and contributions from personal funds within the limitations permitted. Public financing benefits for eligible candidates are $100,000 in the primary election and $300,000 in the spring election. The benefits are subject to a biennial cost of living adjustment. A candidate who accepts more than a specified amount of qualifying or seed money contributions has the excess deducted from his or her public financing benefit. In addition, if a candidate's opponent declines to accept public financing and makes expenditures in a total amount that exceeds by more than 5 percent the amount permitted for a candidate who accepts public financing, the candidate who accepts public financing receives additional funding equivalent to the excess expenditures made by his or her opponent, but not more than three times the amount of the public financing benefit for the office that the candidate seeks. A candidate also receives additional public financing equivalent to any independent expenditures made against the candidate or in support of his or her opponents if those expenditures exceed 20 percent of the amount of the public financing benefit for the office that the candidate seeks (but not more than three times the amount of that benefit).

Currently, a candidate for the office of justice of the supreme court may qualify to receive a grant from the Wisconsin election campaign fund for use in an election campaign only (no funding is provided for primary campaigns). In order to qualify for a grant, a candidate must qualify to have his or her name appear on the spring election ballot and must have an opponent who qualifies to have his or her name appear on that ballot. The maximum amount of a grant that a candidate may receive is $97,031. This amount is not subject to any cost of living adjustment. In addition, this amount is reduced by the total amount of contributions received by a candidate from special interest committees and this amount may not be fully funded in a particular year if there are not sufficient moneys in the Wisconsin election campaign fund to provide full financing for all qualifying candidates. A candidate must agree to abide by spending and self-contribution limits in order to receive a grant, but this agreement does not apply if the candidate has an opponent who could have qualified for a grant but declines to do so and declines to file an affidavit of voluntary compliance with spending and self-contribution limits.

Currently, individuals and committees making political contributions to candidates for the office of justice of the supreme court are subject to limitations on the amount or value of any contribution or contributions that may be made cumulatively to any candidate in a campaign. The limitations are $10,000 in the case of an individual making a contribution to a candidate and $8,625 in the case of a committee making a contribution to a candidate. This bill replaces these limitations with a contribution limitation of $1,000 applicable to an individual or committee making any contribution or contributions cumulatively to any candidate for the office of justice of the supreme court who is eligible to qualify for a public financing benefit but who declines to accept one, per campaign.

Fundraising during state budget consideration

This bill prohibits any person from making a contribution to an incumbent partisan state official or a candidate for a partisan state office during the period from the date of introduction of the executive budget bill through the date of enactment of the biennial budget act. The prohibition does not apply to an individual who is a candidate for a partisan state office at a special election during the period beginning on the date that the special election is ordered and ending on the date of the special election. In addition, the prohibition does not apply to a contribution made to an incumbent who is subject to a recall election beginning on the date on which a petitioner registers an intent to circulate a petition for a recall election against the incumbent and ending on the date of the recall election, except that if the circulation period expires without offering of the recall petition for filing, the filing officer determines not to file the petition, or the incumbent resigns, the period ends on the date of that event. Currently, there is no such prohibition.

Violators are subject to a forfeiture (civil penalty) of treble the amount or value of any unlawful contribution. Intentional violators are guilty of a misdemeanor and may be fined not more than $1,000 or imprisoned for not more than six months or both.

Representation by former state officials

Currently, with certain exceptions, no former state public official, for 12 months following the date on which he or she ceases to be a state public official, may, for compensation, on behalf of anyone other than a governmental entity, make any formal or informal appearance before, or negotiate with, any officer or employee of the department or agency with which he or she was associated as a state public official during the 12 months preceding the official's departure from state service. Additional restrictions apply with respect to matters in which a former state public official was involved while serving as a state public official.

This bill provides, in addition, that no former governor or state public official who was appointed to his or her position by the governor, for 12 months following the date on which he or she ceases to occupy the office of governor or the position to which he or she was appointed by the governor may, for compensation, on behalf of anyone other than a governmental entity, make any formal or informal appearance before, or negotiate with, any officer or employee in the executive branch of state government.

Service by former legislators and certain legislative employees as lobbyists

This bill prohibits any individual who serves as a member or employee of the legislature, except a nonpartisan employee, for 12 months following the date on which the individual ceases to hold his or her office or position, from being employed as a lobbyist for the purpose of attempting to influence state legislative action. A "lobbyist" means an individual who is compensated by a principal and whose duties include lobbying on behalf of the principal, except that an individual whose duties on behalf of a principal are not limited exclusively to lobbying is a "lobbyist" only if the individual makes lobbying communications on each of at least five days during a six-month reporting period.

Violators are subject to a forfeiture (civil penalty) of not more than $5,000 for each violation. Intentional violators are guilty of a misdemeanor and are subject to a fine of not less than $100 nor more than $5,000 or imprisonment for not more than one year or both for each violation.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB718, s. 1 Section 1. 8.35 (4) (b) of the statutes is amended to read:

SB718,5,9 8.35 (4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the Wisconsin election campaign fund shall be immediately transferred to any candidate who is appointed to replace such candidate, upon filing of a proper application therefor under s. 11.50 (2). If there is no candidate appointed or if no proper application is filed within 7 days of the date on which the vacancy occurs, such moneys shall revert to the state as provided in s. 11.50 (8). Notwithstanding par. (a), any unspent and unencumbered moneys received by a candidate from the democracy trust fund shall be immediately transferred to any candidate who is appointed to replace that candidate upon filing of a proper application therefor under s. 11.502 (1). For purposes of qualification, contributions received and disbursements made by the former candidate are considered to have been received or made by the replacement candidate. If there is no candidate appointed or if no proper application is filed within 7 days of the date on which a vacancy occurs, the moneys shall revert to the state.

SB718, s. 2 Section 2. 11.01 (14m) of the statutes is created to read:

SB718,5,13 11.01 (14m) "Partisan state office" means the office of governor, lieutenant governor, secretary of state, state treasurer, attorney general, state senator, state representative to the assembly, or district attorney.

SB718, s. 3 Section 3. 11.12 (2) of the statutes, as affected by 2005 Wisconsin Act 177, is amended to read:

SB718,5,23 11.12 (2) Any No registrant, except a candidate who receives a public financing benefit from the democracy trust fund, may accept an anonymous contribution exceeding $10 received by a campaign or committee treasurer or by an individual under s. 11.06 (7) may not be used or expended. The. No candidate who receives a public financing benefit from the democracy trust fund may accept an anonymous contribution exceeding $5. Any anonymous contribution that may not be accepted under this subsection shall be donated to the common school fund or to any a charitable organization at the option of the registrant's treasurer.

SB718, s. 4 Section 4. 11.16 (2) of the statutes, as affected by 2005 Wisconsin Act 177, is amended to read:

SB718,6,7 11.16 (2) Limitation on cash contributions. Every Except as provided in s. 11.506 (6), every contribution of money exceeding $50 shall be made by negotiable instrument or evidenced by an itemized credit card receipt bearing on the face the name of the remitter. No treasurer may accept a contribution made in violation of this subsection. The treasurer shall promptly return the contribution, or donate it to the common school fund or to a charitable organization in the event that the donor cannot be identified.

SB718, s. 5 Section 5. 11.16 (3) of the statutes is amended to read:

SB718,6,19 11.16 (3) Form of disbursements. Every Except as authorized under s. 11.511 (1), every disbursement which is made by a registered individual or treasurer from the campaign depository account shall be made by negotiable instrument. Such instrument shall bear on the face the full name of the candidate, committee, individual or group as it appears on the registration statement filed under s. 11.05 and where necessary, such additional words as are sufficient to clearly indicate the political nature of the registrant or account of the registrant. The name of a political party shall include the word "party". The instrument of each committee registered with the board and designated under s. 11.05 (3) (c) as a special interest committee shall bear the identification number assigned under s. 11.21 (12) on the face of the instrument.

SB718, s. 6 Section 6. 11.24 (4m) of the statutes is created to read:

SB718,7,2 11.24 (4m) (a) Except as provided in par. (c), no person may make a contribution to an incumbent partisan elective state official or to a candidate for a partisan state office, or to the personal campaign committee or support committee authorized under s. 11.05 (3) (p) of such an official or candidate during the period beginning on the date of introduction of the executive budget bill under s. 16.47 (1m) and ending on the date of enactment of the biennial budget act.

SB718,7,5 (b) If in any year there is more than one executive budget bill, par. (a) applies beginning on the date of introduction of the first such bill and ending on the date of enactment of the last such bill.

SB718,7,9 (c) Paragraph (a) does not apply to an individual who is a candidate for state office at a special election, or to the personal campaign or authorized support committee of such a candidate, during the period beginning on the date that the special election is ordered and ending on the date of the special election.

SB718,7,16 (d) Notwithstanding par. (a), a person may make a contribution to an incumbent partisan elective state official against whom a recall petition is circulated during the period beginning on the date that a petitioner registers an intent to circulate a petition under s. 9.10 (2) (d) and ending on the date of the recall election, except that if the circulation period expires without offering of the recall petition for filing, the filing officer determines not to file the petition, or the official resigns at an earlier date under s. 9.10 (3) (c), the period ends on the date of that event.

SB718, s. 7 Section 7. 11.26 (1) (a) of the statutes is amended to read:

SB718,7,19 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, $10,000.

SB718, s. 8 Section 8. 11.26 (1) (am) of the statutes is created to read:

SB718,7,21 11.26 (1) (am) Candidates for justice, $1,000.

SB718, s. 9 Section 9. 11.26 (2) (a) of the statutes, as affected by 2005 Wisconsin Act 177, is amended to read:

SB718,8,3 11.26 (2) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, 4 percent of the value of the disbursement level specified in the schedule under s. 11.31 (1).

SB718, s. 10 Section 10. 11.26 (2) (an) of the statutes is created to read:

SB718,8,5 11.26 (2) (an) Candidates for justice, $1,000.