DE7 SB1: Bill Text

4. It requires the state treasurer to electronically transmit supplemental grants to qualifying candidates who so request as soon as possible after the candidates qualify to receive the supplemental grants, but in no case later than the end of the third business day after the Government Accountability Board notifies the treasurer that a candidate has qualified to receive a grant.

Penalties for violations

Currently, violators of the campaign finance law are subject to a forfeiture (civil penalty) of not more than $500 for each violation, except that violators of contribution limitations are subject to a forfeiture of not more than treble the amount unlawfully contributed. In addition, currently, any person who is delinquent in filing a report is subject to a forfeiture of not more than $50 or one percent of the annual salary of the office for which a candidate is being supported or opposed, whichever is greater, for each day of delinquency.

Currently, whoever intentionally violates certain provisions of the campaign finance law, such as registration requirements, contribution limitations, the prohibition against making contributions in the name of another person, the prohibition against using contributions for most nonpolitical purposes, and the prohibition against filing false reports and statements, may be fined not more than $1,000 or imprisoned for not more than six months, or both, if the violation does not exceed $100 in amount or value, and may be fined not more than $10,000 or imprisoned for not more than three years and six months, or both, if the violation exceeds $100 in amount or value.

This bill provides that if any person, including a candidate or committee other than a conduit, makes a disbursement to support or oppose a candidate for a major state office (governor, lieutenant governor, attorney general, secretary of state, state treasurer, or state superintendent of public instruction) without first reporting to the extent required under the bill, the offender is subject to a forfeiture (civil penalty) of not more than $500 for each day of violation. The bill also provides that if any person, including any of these candidates or committees, makes one or more disbursements or other expenditures for such a purpose in an amount that is more or less than the amount reported by that person:

l. By more than five percent but not more than ten percent, the person must forfeit four times the amount of the difference.

2. By more than ten percent but not more than 15 percent, the person must forfeit six times the amount of the difference.

3. By more than 15 percent, the person must forfeit eight times the amount of the difference.

Public broadcasting television stations and public access channels

Current law requires that free time on public broadcasting television stations and public access channels be provided to candidates for state office. Under current law, the Federal Communications Commission grants licenses for the operation of public broadcasting television stations. Also under current law, a city, village, or town is authorized to grant a franchise to a person that allows that person to operate a cable television system in the city, village, or town. Under the franchise, the person may be required to provide cable television channels that the city, village, or town may use for public, educational, or governmental purposes. A channel that is used exclusively for public, rather than educational or governmental purposes, is commonly referred to as a public access channel. A city, village, or town may operate a public access channel, or a city, village, or town may allow another person to operate the channel. Current law requires the Government Accountability Board to promulgate rules that require licensees of public broadcasting stations and operators of public access channels to provide a minimum amount of free time to candidates for state office at general, spring, and special elections. The rules must require the same amount of time for each candidate for a particular state office, but may require different amounts of time for different offices.

This bill repeals these provisions.

Individual income tax credit

This bill creates a nonrefundable individual income tax credit for contributions to the Public Integrity Endowment. Under the bill, an individual may claim as an income tax credit, up to the amount of the individual's income tax liability, any amount that he or she contributes to the Public Integrity Endowment. If a married couple files a joint return, each spouse may claim the credit.

Public financing of campaigns for justice

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 certain state offices (including justice of the supreme court) 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. 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 an elector of this 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 spring 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 a public financing benefit 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 spring primary 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 a public financing benefit and makes expenditures in a total amount that exceeds by more than 5 percent the amount permitted for a candidate who accepts a public financing benefit, the candidate who accepts a public financing benefit 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).

The bill provides that if a candidate makes disbursements that exceed the total amount of the public financing benefit allocated to the candidate and the total qualifying and seed money contributions lawfully accepted by the candidate, the candidate is subject to a forfeiture (civil penalty) of not more than ten times the amount by which his or her disbursements exceed the allocation. In addition, the bill provides that a candidate who accepts contributions in excess of any limitation imposed under the bill is subject to a forfeiture of not more than ten times the amount by which the contributions exceed the applicable limitation. The bill also provides that if any candidate or agent of a candidate knowingly accepts more contributions than the candidate is entitled to receive, or makes disbursements exceeding the total amount of the public financing benefit received by the candidate and the qualifying and seed money contributions lawfully received by the candidate, the candidate or agent may be fined not more than $25,000 or imprisoned for not more than ten years, or both. Under the bill, any person who, in connection with the receipt or disbursement of a public financing benefit, knowingly provides false information to the Government Accountability Board, or knowingly conceals or withholds information from the board, is subject to the same penalty.

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 during a campaign period 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.

The changes take effect on June 1, 2008.

Nonseverability

Currently, if any part of an act is found by a court to be invalid, those parts that are valid are severed from the invalid part and the severed parts continue in force. This bill provides that, if any of the following parts of the bill is unconstitutional, then all of the following parts are void: 1) parts relating to the reporting of certain expenditures and obligations by candidates and special interest committees; and 2) parts relating to the provision of supplemental grants to candidates whose opponents exceed disbursement limitations or who are opposed or whose opponents are supported by any reportable disbursements by candidates or independent disbursements or obligations, including those that are reportable under current law.

Initial applicability

All campaign finance changes under the bill apply to elections held on or after January 1, 2008, except that the directive to incorporate a Public Integrity Endowment takes effect on the day on which the bill becomes law. Under the bill, changes to the income tax checkoff and the creation of an individual income tax credit for contributions to the endowment apply to taxable years beginning on January 1 of the year in which the bill becomes law, if the bill becomes law by July 31, in any year, or otherwise to taxable years beginning on January 1 of the following year.

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:

SB1, s. 1 Section 1. 5.02 (13) of the statutes is amended to read:

SB1,16,7 5.02 (13) "Political party" or "party" means a state committee registered under s. 11.05 and organized exclusively for political purposes under whose name candidates appear on a ballot at any election, and all county, congressional, legislative, local and other affiliated committees authorized to operate under the same name. For purposes of ch. 11, the term does not include a legislative campaign committee or a committee filing an oath under s. 11.06 (7).

SB1, s. 2 Section 2. 7.08 (2) (c) and (cm) of the statutes are amended to read:

SB1,17,5 7.08 (2) (c) As soon as possible after the canvass of the spring and September primary votes, but no later than the first Tuesday in March and the 4th Tuesday in September, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom the board determines to be are eligible to receive payments grants from the Wisconsin election campaign fund. The board shall also electronically transmit a similar list containing the name of each candidate whom the board determines is eligible to receive a grant under s. 11.50 (9) (ba) or (bb) within 24 hours after the candidate qualifies to receive such a grant. Each list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

SB1,17,19 (cm) As soon as possible after the canvass of a special primary, or the date that the primary would be held, if required, transmit to the state treasurer a certified list of all eligible candidates for state office who have filed applications under s. 11.50 (2) and whom the board determines to be eligible to receive a grant grants from the Wisconsin election campaign fund prior to the election. The board shall also transmit a similar list of candidates, if any, who have filed applications under s. 11.50 (2) and whom the board determines to be eligible to receive a grant grants under s. 11.50 (1) (a) 2. 1. b. after the special election. The board shall electronically transmit a similar list containing the name of each candidate whom the board determines is eligible to receive a grant under s. 11.50 (9) (ba) or (bb) within 24 hours after the candidate qualifies to receive such a grant. Each list shall contain each candidate's name, the mailing address indicated upon the candidate's registration form, the office for which the individual is a candidate and the party or principle which he or she represents, if any.

SB1, s. 3 Section 3. 7.08 (2) (cs) of the statutes is created to read:

SB1,17,23 7.08 (2) (cs) In each even-numbered year, certify to the state treasurer for the period beginning with the month following certification and ending with the month in which the next certification is made by the board:

SB1,18,2 1. No later than July 1, the name of each political party that qualifies under s. 11.50 (1) (am) 1. as an eligible political party as of the preceding June 1 and whose state chairperson has filed a written request to establish an account for the party under s. 11.50 (2s) (a).

SB1,18,6 2. No later than December 15, the name of each political party that qualifies under s. 11.50 (1) (am) 2. as an eligible political party as of the date of the preceding general election and whose state chairperson has filed a written request to establish an account for the party under s. 11.50 (2s) (a).

SB1, s. 4 Section 4. 8.30 (2) of the statutes is amended to read:

SB1,18,15 8.30 (2) If no registration statement has been filed by or on behalf of a candidate for state or local office in accordance with s. 11.05 (2g) or (2r) by the applicable deadline for filing nomination papers by such the candidate, or the deadline for filing a declaration of candidacy for an office for which nomination papers are not filed, the name of the candidate may not appear on the ballot. This subsection may not be construed to exempt a candidate an individual from applicable penalties if the individual is a candidate, as defined in s. 11.01 (1), and he or she files a registration statement later than the time prescribed in ss. 11.01 (1) and s. 11.05 (2g).

SB1, s. 5 Section 5. 8.35 (4) (a) 1. a. and b. of the statutes are amended to read:

SB1,18,24 8.35 (4) (a) 1. a. Donated to the former candidate's local or state political party if If the former candidate was a partisan candidate or, donated to the former candidate's local or state political party, donated to the a charitable organization of the former candidate's choice or the charitable organization chosen , or transferred to the board for deposit in the Wisconsin election campaign fund, as instructed by the former candidate or, if the candidate left no instruction, as instructed by the former candidate's next of kin if the former candidate is deceased, or if no choice is made returned to the donors on a proportional basis; or

SB1,19,6 b. If the former candidate was a nonpartisan candidate, donated to the a charitable organization of the former candidate's choice or the or the charitable organization chosen or transferred to the board for deposit in the Wisconsin election campaign fund, as instructed by the former candidate or, if the candidate left no instruction, as instructed by the former candidate's next of kin if the former candidate is deceased; or

SB1, s. 6 Section 6. 8.35 (4) (b) of the statutes is amended to read:

SB1,19,21 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.

SB1, s. 7 Section 7. 8.35 (4) (c) and (d) of the statutes are amended to read:

SB1,20,8 8.35 (4) (c) The transfer to the replacement candidate under par. (b) shall be made and reported to the appropriate filing officer in a special report submitted in a special report submitted by the former candidate's campaign treasurer. If the former candidate is deceased and was serving as his or her own campaign treasurer, the former candidate's petitioner or personal representative shall file the report and make the transfer required by par. (b), if any and file the report. The report shall be made at the appropriate interval under s. 11.20 (2) or (4) or in the manner required under s. 11.21 (16), if applicable, and shall include a complete statement of all contributions, disbursements and incurred obligations pursuant to s. 11.06 (1) covering the period from the day after the last date covered on the former candidate's most recent report to the date of disposition.

SB1,20,12 (d) The newly appointed candidate shall file his or her report at the next appropriate interval under s. 11.20 (2) or (4) after his or her appointment or in the manner required under s. 11.21 (16), if applicable. The appointed candidate shall include any transferred funds moneys in his or her first report.

SB1, s. 8 Section 8. 11.001 (2m) of the statutes is created to read:

SB1,20,21 11.001 (2m) The legislature finds a compelling justification for minimal disclosure of all communications made near the time of an election that include a reference to a clearly identified candidate at that election, an office to be filled at that election, or a political party in order to permit increased funding for candidates who are affected by those communications. The legislature finds that this minimal disclosure burden is outweighed by the need to establish an effective funding mechanism for affected candidates to effectively respond to communications that may impact an election.

SB1, s. 9 Section 9. 11.01 (12s) of the statutes is repealed.

SB1, s. 10 Section 10. 11.01 (14m) of the statutes is created to read:

SB1,21,3 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.

SB1, s. 11 Section 11. 11.01 (16) (a) 3. of the statutes is created to read:

SB1,21,11 11.01 (16) (a) 3. A communication that is made by means of one or more communications media, other than a communication that is exempt from reporting under s. 11.29, that is made during the period beginning on the 60th day preceding an election and ending on the date of that election, and that includes a reference to a candidate whose name is certified under s. 7.08 (2) (a) or 8.50 (1) (d) to appear on the ballot at that election, a reference to an office to be filled at that election, or a reference to a political party.

SB1, s. 12 Section 12. 11.01 (17g) and (17r) of the statutes are repealed.

SB1, s. 13 Section 13. 11.05 (1) of the statutes is renumbered 11.05 (1) (a) and amended to read:

SB1,21,22 11.05 (1) (a) Except as provided in s. 9.10 (2) (d), every committee, other than a personal campaign committee, and every political group subject to a registration requirement under s. 11.23 which that makes or accepts contributions, incurs obligations, or makes disbursements in a calendar year in an aggregate amount in excess of $25 shall file a statement with the appropriate filing officer giving the information required by sub. (3). In the case of any committee other than a personal campaign committee, the The statement shall be filed by the treasurer. A personal campaign committee shall register under sub. (2g) or (2r).

SB1, s. 14 Section 14. 11.05 (1) (b) of the statutes is created to read:

SB1,22,2 11.05 (1) (b) Every political group subject to registration under s. 11.23 that makes or accepts contributions, incurs obligations, or makes disbursements in a calendar year in an aggregate amount in excess of $100 shall file a statement with the appropriate filing officer giving the information required by sub. (3).

SB1, s. 15 Section 15. 11.05 (2) of the statutes is renumbered 11.05 (2) (a) and amended to read:

SB1,22,12 11.05 (2) (a) Except as provided in s. 9.10 (2) (d), every individual, other than a candidate or agent of a candidate, who accepts contributions, incurs obligations, or makes disbursements with respect to one or more elections for state or local office in a calendar year in an aggregate amount in excess of $25 shall file a statement with the appropriate filing officer giving the information required by sub. (3). An individual who guarantees a loan on which an individual, committee or group subject to a registration requirement defaults is not subject to registration under this subsection paragraph solely as a result of such default.

SB1, s. 16 Section 16. 11.05 (2) (b) of the statutes is created to read:

SB1,22,17 11.05 (2) (b) Every individual who accepts contributions, incurs obligations, or makes disbursements with respect to one or more referenda in a calendar year in an aggregate amount in excess of $100 shall file a statement with the appropriate filing officer giving the information required by sub. (3).

SB1, s. 17 Section 17. 11.05 (2r) of the statutes is renumbered 11.06 (2m) (a) and amended to read:

SB1,23,15 11.06 (2m) (a) Any person, committee or group, other than a committee or an individual or committee required to file an oath under s. 11.06 (7) sub. (7), who or which does not anticipate accepting contributions, making disbursements , or incurring obligations in an aggregate amount in excess of $1,000 in a calendar year and does not anticipate accepting any contribution or contributions from a single source, other than contributions made by a candidate to his or her own campaign, exceeding $100 in that any calendar year may indicate on its registration statement that the person, committee, or group will not accept contributions, incur obligations, or make disbursements in the aggregate in excess of $1,000 in any calendar year and will not accept any contribution or contributions from a single source, other than contributions made by a candidate to his or her own campaign, exceeding $100 in such any calendar year. Any registrant making such an indication is not subject to any filing requirement if the statement is true. The registrant need not file a termination report. A registrant not making such an indication on a registration statement is subject to a filing requirement. The indication may be revoked and the registrant is then subject to a filing requirement as of the date of revocation, or the date that aggregate contributions, disbursements, or obligations for the calendar year exceed $1,000, or the date on which the registrant accepts any contribution or contributions exceeding $100 from a single source, other than contributions made by a candidate to his or her own campaign, during that any calendar year, whichever is earlier. If the revocation is not timely, the registrant violates s. 11.27 (1).

SB1, s. 18 Section 18. 11.05 (3) (c) of the statutes is amended to read:

SB1,23,20 11.05 (3) (c) In the case of a committee, a statement as to whether the committee is a personal campaign committee, a political party committee, a legislative campaign committee, a support committee, or a special interest committee.

SB1, s. 19 Section 19. 11.05 (3) (m) of the statutes is created to read:

SB1,23,24 11.05 (3) (m) In the case of a personal campaign committee, the name of the candidate on whose behalf the committee was formed or intends to operate and the office or offices that the candidate seeks.

SB1, s. 20 Section 20. 11.05 (3) (o) of the statutes is repealed.

SB1, s. 21 Section 21. 11.05 (3) (r) of the statutes is created to read:

SB1,24,4 11.05 (3) (r) In the case of a candidate or personal campaign committee of a candidate, the telephone number or numbers and a facsimile transmission number or electronic mail address, if any, at which the candidate may be contacted.

SB1, s. 22 Section 22. 11.05 (3) (s) of the statutes is created to read:

SB1,24,10 11.05 (3) (s) In the case of a registrant that has made a communication identified in s. 11.01 (16) (a) 3., a report containing the information specified in s. 11.06 (1) with respect to any obligation to make a disbursement incurred or any disbursement made for the purpose of making such a communication prior to registration.

SB1, s. 23 Section 23. 11.05 (5) of the statutes is amended to read:

SB1,25,2 11.05 (5) Change of information. Any change in information previously submitted in a statement of registration shall be reported by the registrant to the appropriate filing officer within 10 days following the change. This period does not apply in case of change of an indication made under sub. (2r) s. 11.06 (2m), which shall be reported no later than the date that a registrant is subject to a filing requirement under sub.(2r) s. 11.06 (2m). Any such change may be reported only by the individual or by the officer who has succeeded to the position of an individual who signed the original statement; but in the case of a personal campaign committee, a candidate or campaign treasurer may report a change in the statement except as provided in s. 11.10 (2), and in the case of any other committee or group, the chief executive officer or treasurer indicated on the statement may report a change. If a preexisting support committee is adopted by a candidate as his or her personal campaign committee, the candidate shall file an amendment to the committee's statement under this subsection indicating that all information contained in the statement is true, correct and complete.

SB1, s. 24 Section 24. 11.05 (5r) of the statutes is created to read:

SB1,25,7 11.05 (5r) Contribution prior to registration prohibited. (a) Except as provided in sub. (13), no person, committee, or group that is subject to a registration requirement may make any contribution prior to the date of registration under this section.

SB1,25,10 (b) No registrant may accept any contribution received from a person, committee, or group that is subject to a registration requirement prior to the date of registration of that person, committee, or group.

SB1, s. 25 Section 25. 11.05 (9) (title) of the statutes is repealed and recreated to read:

SB1,25,12 11.05 (9) (title) Deposit of contributions; conduits.

SB1, s. 26 Section 26. 11.05 (9) (b) of the statutes is amended to read:

SB1,25,19 11.05 (9) (b) An individual who or a committee or group which receives a contribution of money and transfers the contribution to another individual, committee, or group while acting as a conduit is not subject to registration under this section unless the individual, committee, or group transfers the contribution to a candidate or a personal campaign, legislative campaign, political party, or support committee.

SB1, s. 27 Section 27. 11.05 (12) (title) of the statutes is amended to read:

SB1,25,21 11.05 (12) (title) Time of registration; acceptance of unlawful contributions.

SB1, s. 28 Section 28. 11.05 (12) (b) of the statutes is amended to read:

SB1,26,6 11.05 (12) (b) Except as authorized under sub. (13), a committee, group or individual other than a candidate or agent of a candidate shall comply with sub. (1) or (2) no later than the 5th business day commencing after receipt of the first contribution by such committee, group or individual, and before making any disbursement. No committee, group or individual, other than a candidate or agent of a candidate, may accept any contribution or contributions exceeding $25 in the aggregate the amount specified in sub. (1) or (2) during a calendar year at any time when the committee, group or individual is not registered under this section except within the initial 5-day period authorized by this paragraph.

SB1, s. 29 Section 29. 11.05 (13) of the statutes is amended to read: