AB543: Bill Text

Analysis by the Legislative Reference Bureau

This bill creates a democracy trust fund under which eligible candidates for the office of justice of the supreme court may receive public grants derived from general purpose revenues to finance their campaigns.

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 from at least 1,000 separate contributors who are electors of this state in amounts of not less than $5 nor more than $100 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 from electors of this state 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 spring 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 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.

The bill imposes a limitation on disbursements (expenditures) by a candidate who accepts a public financing benefit that equals the total public financing benefit allocated to the candidate and the total qualifying and seed money contributions lawfully accepted by the candidate. The bill provides that if a candidate makes disbursements that exceed the total permitted under the bill, 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, no public financing is available to finance the campaigns of candidates for the office of justice of the supreme court.

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.

Under the bill, public financing benefits are 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 $2 of general purpose revenue be transferred to the democracy trust fund. Individuals filing a joint return may separately choose whether to direct that the $2 transfer be made. The designation does not increase an individual's tax liability nor reduce an individual's refund. If the total designations do not generate sufficient general purpose revenues to fully fund the costs of public grants and administration of the democracy trust fund, the bill appropriates additional general purpose revenues to finance those costs.

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:

AB543,1 Section 1. 8.35 (4) (b) of the statutes is created to read:

AB543,3,9 8.35 (4) (b) 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.

AB543,2 Section 2. 11.12 (2) of the statutes is amended to read:

AB543,4,2 11.12 (2) No registrant, other than a candidate who receives a public financing benefit from the democracy trust fund, may accept an anonymous contribution exceeding $10. No candidate who receives a public financing benefit from the democracy trust fund may accept an anonymous contribution exceeding $5. Any anonymous contribution exceeding $10 received by a campaign or committee treasurer or by an individual under s. 11.06 (7) that may not be accepted under this subsection may not be used or expended. The contribution shall be donated to the common school fund or to any charitable organization at the option of the registrant's treasurer.

AB543,3 Section 3. 11.16 (2) of the statutes is amended to read:

AB543,4,10 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.

AB543,4 Section 4. 11.16 (3) of the statutes is amended to read:

AB543,4,22 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.

AB543,5 Section 5. 11.26 (1) (a) of the statutes is amended to read:

AB543,4,25 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, $10,000.

AB543,6 Section 6. 11.26 (1) (am) of the statutes is created to read:

AB543,5,2 11.26 (1) (am) Candidates for justice, $1,000.

AB543,7 Section 7. 11.26 (2) (a) of the statutes is amended to read:

AB543,5,6 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).

AB543,8 Section 8. 11.26 (2) (am) of the statutes is created to read:

AB543,5,8 11.26 (2) (am) Candidates for justice, $1,000.

AB543,9 Section 9. 11.26 (9) of the statutes is amended to read:

AB543,5,14 11.26 (9) (a) No individual who is a candidate for state or local office may receive and accept more than 65 percent of the value of the total disbursement level determined under s. 11.31 or 11.511 (7) for the office for which he or she is a candidate during any primary and election campaign combined from all committees subject to a filing requirement, including political party and legislative campaign committees.

AB543,5,19 (b) No individual who is a candidate for state or local office may receive and accept more than 45 percent of the value of the total disbursement level determined under s. 11.31 or 11.511 (7) 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 subject to a filing requirement.

AB543,10 Section 10. 11.26 (13) of the statutes is created to read:

AB543,5,22 11.26 (13) Public financing benefits received from the democracy trust fund are not subject to limitation by this section.

AB543,11 Section 11. 11.31 (1) (d) of the statutes is amended to read:

AB543,5,25 11.31 (1) (d) Candidates for secretary of state, state treasurer, state superintendent, or justice $215,625.

AB543,12 Section 12. 11.501 to 11.522 of the statutes are created to read:

AB543,6,2 11.501 Definitions. In ss. 11.501 to 11.522:

AB543,6,4 (1) "Allowable contribution" means a qualifying contribution, seed money contribution, or personal contribution authorized under ss. 11.502 to 11.522.

AB543,6,5 (2) "Campaign" has the meaning given in s. 11.26 (17).

AB543,6,8 (3) "Election campaign period" means the period beginning on the day after the spring primary election or the day on which a primary election would be held, if required, and ending on the day of the succeeding spring election.

AB543,6,14 (4) "Eligible candidate" means a candidate for the office of justice who has an opponent, who has qualified to have his or her name certified for placement on the ballot at the spring primary or election, and who qualifies for a public financing benefit by collecting the required number of qualifying contributions, making all required reports and disclosures, and being certified by the board as being in compliance with ss. 11.502 to 11.522.

AB543,6,17 (5) "Excess disbursement amount" means the amount of disbursements made by a nonparticipating candidate in excess of the public financing benefit available to an eligible candidate for the same office that the nonparticipating candidate seeks.

AB543,6,20 (6) "Excess qualifying contribution amount" means the amount of qualifying contributions accepted by a candidate beyond the number or dollar amount of contributions required to qualify a candidate for a public financing benefit.

AB543,6,23 (7) "Exploratory period" means the period that begins after the date of a spring election immediately preceding a public financing qualifying period and ends on the first day of the public financing qualifying period for the next election for justice.

AB543,6,25 (9) "Immediate family," when used with reference to a candidate, includes the candidate's spouse and children.

AB543,7,5 (10) "Independent disbursement" means a disbursement by a person expressly advocating the election or defeat of a clearly identified candidate which is made without cooperation or consultation with a candidate, or any authorized committee or agent of a candidate, and which is not made in concert with, or at the request or suggestion of, any candidate, or any authorized committee or agent of a candidate.

AB543,7,8 (11) "Nonparticipating candidate" means a candidate for the office of justice who does not apply for a public financing benefit or who is otherwise ineligible or fails to qualify for a public financing benefit under ss. 11.502 to 11.522.

AB543,7,10 (12) "Personal funds" means funds contributed by a candidate or a member of a candidate's immediate family.

AB543,7,14 (13) "Primary election campaign period" means the period beginning on the day after the last day prescribed by law for filing nomination papers for the office of justice and ending on the day of the spring primary election for that office or the day on which the primary election would be held, if required.

AB543,7,16 (14) "Public financing benefit" means a benefit provided to an eligible candidate under ss. 11.502 to 11.522.

AB543,7,20 (15) "Public financing qualifying period" means, for each election for the office of justice, the period beginning on the first day of July of the year immediately preceding the year of that election and ending on the day before the beginning of the primary election campaign period for that office.

AB543,7,24 (16) "Qualifying contribution" means a contribution in an amount of not less than $5 nor more than $100 made to a candidate by an elector of this state during the public financing qualifying period, which is acknowledged by written receipt identifying the contributor.

AB543,8,6 (17) "Seed money contribution" means a contribution in an amount of not more than $100 made to a candidate by an elector of this state during the exploratory period or the public financing qualifying period, or a contribution made to a candidate consisting of personal funds of that candidate in an amount not more than the amount authorized under s. 11.507 during the exploratory period or the public financing qualifying period.

AB543,8,15 11.502 Qualification; certification. (1) Before a candidate for justice in the primary election may be certified as an eligible candidate to receive a public financing benefit for the primary election campaign period, the candidate shall apply to the board for a public financing benefit and file a sworn statement that the candidate has complied and will comply with all requirements of this section and ss. 11.503 to 11.522 throughout the applicable campaign, which includes the primary and election for that office. A candidate shall file the application and statement no later than the beginning of the primary election campaign period for the office that the candidate seeks.

AB543,8,20 (2) A candidate shall be certified by the board as an eligible candidate for receipt of a public financing benefit for a primary election if the candidate complies with sub. (1) and receives qualifying contributions from at least 1,000 separate contributors in an aggregate amount of not less than $5,000 nor more than $15,000 before the close of the public financing qualifying period.

AB543,8,23 (3) The board shall verify a candidate's compliance with the requirements of sub. (2) by such verification and sampling techniques as the board considers appropriate.

AB543,8,24 (4) Each candidate shall:

AB543,9,2 (a) Acknowledge each qualifying contribution by a receipt to the contributor which contains the contributor's name and home address.

AB543,9,6 (b) No later than the 15th or the last day of the month which immediately follows the date of receipt of a qualifying contribution, whichever comes first, file a copy of the receipt under par. (a) with the board, except that during July, August, and September a copy need only be filed by the last day of the month.

AB543,9,8 (5) A qualifying contribution may be utilized only for the purpose of making a disbursement authorized by law.

AB543,9,16 11.503 Time of application. (1) Before a candidate may be certified as eligible for receipt of a public financing benefit for the spring election, the candidate shall apply to the board and file a sworn statement that the candidate has fulfilled all the requirements of ss. 11.502 to 11.522 during the primary election campaign period and will comply with such requirements during the election campaign period. Except as authorized in s. 8.35 (4) (b), the application shall be filed no later than the 7th day after the date of the spring primary or the date that the primary election would be held if a primary were required.

AB543,9,20 (2) The board shall certify a candidate as an eligible candidate for receipt of a public financing benefit for the spring election if the candidate complies with sub. (1) and the candidate was an eligible candidate during the primary election campaign period.

AB543,9,25 11.505 Agreement by candidate. An eligible candidate who accepts a public financing benefit under ss. 11.502 to 11.522 during the primary election campaign period shall agree to comply with all requirements of ss. 11.502 to 11.522 throughout the election campaign period during the same campaign as a precondition to receipt of a public financing benefit. An eligible candidate who accepts a public financing benefit during a primary election campaign period may not elect to accept private contributions in violation of ss. 11.502 to 11.522 during the corresponding election campaign period.

AB543,10,7 11.506 Requirements imposed upon candidates. (1) An eligible candidate shall not accept private contributions other than seed money contributions and qualifying contributions that the candidate accepts during the exploratory period and the public financing qualifying period.

AB543,10,15 (2) In addition to reports required to be filed under ss. 11.12 (5) and 11.20, a candidate who receives a public financing benefit shall furnish complete financial records, including records of seed money contributions, qualifying contributions, and disbursements, to the board on the 15th or the last day of the month that immediately follows the receipt of the contribution or the making of the disbursement, whichever comes first, except that during July, August, and September records need only be furnished by the last day of the month. Each such candidate shall cooperate with any audit or examination by the board.

AB543,10,24 (3) In addition to adhering to requirements imposed under ss. 11.06 (5) and 11.12 (3), a candidate who receives a public financing benefit shall maintain records of all contributions received by the candidate of more than $5 but less than $50, including seed money contributions and qualifying contributions, which shall contain the full name of the contributor and the contributor's full home address. In addition, if a contributor's aggregate contributions to any candidate exceed $50 for any campaign, the candidate shall also maintain a record of the contributor's principal occupation and the name and business address of the contributor's place of employment.

AB543,11,3 (4) The failure to record or provide the information specified in sub. (3) disqualifies a contribution from being used by a candidate as a qualifying contribution.

AB543,11,6 (5) No eligible candidate and no person acting on a candidate's behalf may deposit any contribution that is not recorded in accordance with sub. (3) in a candidate's campaign depository account.

AB543,11,10 (6) No eligible candidate may accept more than $25 in cash from any contributor. No eligible candidate may accept cash from all sources in a total amount greater than one-tenth of 1 percent of the public financing benefit for the office that the candidate seeks or $500, whichever is greater.

AB543,11,13 11.507 Personal funds of candidates. (1) The personal funds of a candidate contributed as seed money contributions may not exceed an aggregate amount of $5,000.

AB543,11,15 (2) No eligible candidate may make any disbursement derived from personal funds after the close of the public financing qualifying period.

AB543,11,22 11.508 Seed money contributions. (1) An eligible candidate may accept seed money contributions from any individual or committee prior to the end of the public financing qualifying period, provided the total contributions received from one contributor, except personal funds and qualifying contributions otherwise permitted under ss. 11.502 to 11.522, do not exceed $100, and the aggregate contributions, including personal funds, but not including qualifying contributions, do not exceed $5,000.

AB543,11,25 (2) An eligible candidate may make disbursements derived from seed money contributions only during the exploratory period and the public financing qualifying period.

AB543,12,7 11.509 Excess contributions. If an eligible candidate receives and accepts excess seed money contributions or qualifying contributions in an aggregate amount greater than the limits prescribed in s. 11.502 (2) or 11.508 (1), the candidate shall transfer to the board all seed money and qualifying contributions that exceed the limits prescribed in this section within 48 hours after the end of the public financing qualifying period. The board shall deposit all contributions transferred under this section in the democracy trust fund.

AB543,12,14 11.51 Certification by candidate. (1) To apply for a public financing benefit, a candidate shall certify to the board that the candidate has complied and will comply, throughout the applicable campaign, with all requirements of ss. 11.502 to 11.522 and that all disclosures required as of the time of application have been made, and shall present evidence of the requisite number of qualifying contributions received by the candidate. The candidate's request for certification shall be signed by the candidate and the candidate's campaign treasurer.

AB543,12,22 (2) The board shall certify to the state treasurer the name of each eligible candidate at the spring primary together with the amount of the public financing benefit payable to the candidate promptly after the candidate demonstrates his or her eligibility and, in any event, not later than 5 days after the end of the public financing qualifying period. The state treasurer shall immediately credit that candidate's account with a line of credit for the amount certified. No candidate may utilize a line of credit received under this subsection until the beginning of the primary election campaign period.

AB543,13,6 (3) The board shall certify to the state treasurer the name of each eligible candidate at the spring election together with the amount of the public financing benefit payable to the candidate not later than 48 hours after the date of the spring primary election for the office of justice, or the date that the primary election would be held if a primary were required. The state treasurer shall immediately credit that candidate's account with a line of credit for the amount certified. However, no candidate for a particular office shall receive a line of credit until all candidates for the office of justice who apply and qualify for a public financing benefit have been certified as eligible candidates.

AB543,13,12 (4) If any candidate who receives a public financing benefit violates the requirements of ss. 11.502 to 11.522, the board shall require the candidate to repay the amount obligated by the candidate from the democracy trust fund for the primary or election campaign period for which the candidate received the benefit. The board shall deposit all repayments received under this subsection in the democracy trust fund.

AB543,13,21 11.511 Public financing benefits. (1) The state treasurer shall provide to each eligible candidate who qualifies to receive a public financing benefit for the primary or election campaign period separate lines of credit for the public financing benefits payable to the candidate for the primary and election campaign periods in the amounts specified in this section. An eligible candidate may use this public financing benefit to finance any lawful disbursements during the primary and election campaign periods to further the election of the candidate in that primary or election. An eligible candidate shall not use this public financing benefit to repay any loan, or in violation of ss. 11.502 to 11.522 or any other applicable law.

AB543,13,23 (2) The public financing benefit for a primary election campaign period is $100,000.

AB543,13,24 (3) The public financing benefit for an election campaign period is $300,000.

AB543,14,2 (4) If there is no spring primary for the office of justice, no eligible candidate may receive a public financing benefit for the primary election campaign period.

AB543,14,7 (5g) An eligible candidate who receives a public financing benefit in the primary election campaign period and whose name is certified to appear on the ballot at the election following that primary may utilize any unencumbered balance of the public financing benefit received by the candidate in the primary election campaign period for the election campaign period.

AB543,14,12 (5r) Except as permitted in sub. (5g), an eligible candidate who receives a public financing benefit and who does not encumber or expend some portion of the benefit for a purpose described in sub. (1) shall return any unencumbered portion of the benefit to the board within 30 days after the primary or election in which the candidate participates.

AB543,14,17 (6) Notwithstanding subs. (2) and (3), beginning on July 1, 2016, and every 2 years thereafter, the board shall modify the public financing benefits provided for in subs. (2) and (3) to adjust for the change in the consumer price index, all items, U.S. city average, published by the U.S. department of labor for the preceding 2-year period ending on December 31.

AB543,14,25 (7) No candidate for the office of justice who files an application for a public financing benefit and certification under s. 11.51 (1) and who accepts a public financing benefit may make or authorize total disbursements in a campaign, beginning with the first day of the exploratory period and ending on the date of the spring election, to the extent of more than the maximum amounts specified in ss. 11.502 (2) and 11.508 (1), plus the amount specified in s. 11.511 (3), as adjusted under s. 11.511 (6), and, if there is a primary for the office of justice, the amount specified in s. 11.511 (2), as adjusted under s. 11.511 (6).

AB543,15,3 11.515 Democracy trust fund. The democracy trust fund shall be administered by the state treasurer. The state treasurer shall establish an account within the fund for each eligible candidate.

AB543,15,6 11.516 Administration. Except as otherwise specifically provided in ss. 11.501 to 11.522, the duties of and authority for administering and enforcing ss. 11.501 to 11.522 are vested in the board.

AB543,15,12 11.517 Penalties; enforcement. (1) Notwithstanding s. 11.60 (1), if an eligible candidate makes disbursements that exceed the total amount of the public financing benefit allocated to the candidate for any campaign and the total qualifying and seed money contributions lawfully accepted by the candidate, the candidate may be required to forfeit not more than 10 times the amount by which the disbursements exceed the allocation.