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 1Section 1. 8.35 (4) (b) of the statutes is created to read:
AB543,3,92 8.35 (4) (b) Notwithstanding par. (a), any unspent and unencumbered moneys
3received by a candidate from the democracy trust fund shall be immediately
4transferred to any candidate who is appointed to replace that candidate upon filing
5of a proper application therefor under s. 11.502 (1). For purposes of qualification,
6contributions received and disbursements made by the former candidate are
7considered to have been received or made by the replacement candidate. If there is
8no candidate appointed or if no proper application is filed within 7 days of the date
9on which a vacancy occurs, the moneys shall revert to the state.
AB543,2 10Section 2. 11.12 (2) of the statutes is amended to read:
AB543,4,211 11.12 (2) No registrant, other than a candidate who receives a public financing
12benefit from the democracy trust fund, may accept an anonymous contribution
13exceeding $10. No candidate who receives a public financing benefit from the
14democracy trust fund may accept an anonymous contribution exceeding $5.
Any
15anonymous contribution exceeding $10 received by a campaign or committee
16treasurer or by an individual under s. 11.06 (7) that may not be accepted under this
17subsection
may not be used or expended. The contribution shall be donated to the

1common school fund or to any charitable organization at the option of the registrant's
2treasurer.
AB543,3 3Section 3. 11.16 (2) of the statutes is amended to read:
AB543,4,104 11.16 (2) Limitation on cash contributions. Every Except as provided in s.
511.506 (6), every
contribution of money exceeding $50 shall be made by negotiable
6instrument or evidenced by an itemized credit card receipt bearing on the face the
7name of the remitter. No treasurer may accept a contribution made in violation of
8this subsection. The treasurer shall promptly return the contribution, or donate it
9to the common school fund or to a charitable organization in the event that the donor
10cannot be identified.
AB543,4 11Section 4. 11.16 (3) of the statutes is amended to read:
AB543,4,2212 11.16 (3) Form of disbursements. Every Except as authorized under s. 11.511
13(1), every
disbursement which is made by a registered individual or treasurer from
14the campaign depository account shall be made by negotiable instrument. Such
15instrument shall bear on the face the full name of the candidate, committee,
16individual or group as it appears on the registration statement filed under s. 11.05
17and where necessary, such additional words as are sufficient to clearly indicate the
18political nature of the registrant or account of the registrant. The name of a political
19party shall include the word "party". The instrument of each committee registered
20with the board and designated under s. 11.05 (3) (c) as a special interest committee
21shall bear the identification number assigned under s. 11.21 (12) on the face of the
22instrument.
AB543,5 23Section 5. 11.26 (1) (a) of the statutes is amended to read:
AB543,4,2524 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state,
25state treasurer, attorney general, or state superintendent or justice, $10,000.
AB543,6
1Section 6. 11.26 (1) (am) of the statutes is created to read:
AB543,5,22 11.26 (1) (am) Candidates for justice, $1,000.
AB543,7 3Section 7. 11.26 (2) (a) of the statutes is amended to read:
AB543,5,64 11.26 (2) (a) Candidates for governor, lieutenant governor, secretary of state,
5state treasurer, attorney general, or state superintendent or justice, 4 percent of the
6value of the disbursement level specified in the schedule under s. 11.31 (1).
AB543,8 7Section 8. 11.26 (2) (am) of the statutes is created to read:
AB543,5,88 11.26 (2) (am) Candidates for justice, $1,000.
AB543,9 9Section 9. 11.26 (9) of the statutes is amended to read:
AB543,5,1410 11.26 (9) (a) No individual who is a candidate for state or local office may receive
11and accept more than 65 percent of the value of the total disbursement level
12determined under s. 11.31 or 11.511 (7) for the office for which he or she is a candidate
13during any primary and election campaign combined from all committees subject to
14a filing requirement, including political party and legislative campaign committees.
AB543,5,1915 (b) No individual who is a candidate for state or local office may receive and
16accept more than 45 percent of the value of the total disbursement level determined
17under s. 11.31 or 11.511 (7) for the office for which he or she is a candidate during any
18primary and election campaign combined from all committees other than political
19party and legislative campaign committees subject to a filing requirement.
AB543,10 20Section 10. 11.26 (13) of the statutes is created to read:
AB543,5,2221 11.26 (13) Public financing benefits received from the democracy trust fund are
22not subject to limitation by this section.
AB543,11 23Section 11. 11.31 (1) (d) of the statutes is amended to read:
AB543,5,2524 11.31 (1) (d) Candidates for secretary of state, state treasurer, state
25superintendent, or justice $215,625.
AB543,12
1Section 12. 11.501 to 11.522 of the statutes are created to read:
AB543,6,2 211.501 Definitions. In ss. 11.501 to 11.522:
AB543,6,4 3(1) "Allowable contribution" means a qualifying contribution, seed money
4contribution, or personal contribution authorized under ss. 11.502 to 11.522.
AB543,6,5 5(2) "Campaign" has the meaning given in s. 11.26 (17).
AB543,6,8 6(3) "Election campaign period" means the period beginning on the day after the
7spring primary election or the day on which a primary election would be held, if
8required, and ending on the day of the succeeding spring election.
AB543,6,14 9(4) "Eligible candidate" means a candidate for the office of justice who has an
10opponent, who has qualified to have his or her name certified for placement on the
11ballot at the spring primary or election, and who qualifies for a public financing
12benefit by collecting the required number of qualifying contributions, making all
13required reports and disclosures, and being certified by the board as being in
14compliance with ss. 11.502 to 11.522.
AB543,6,17 15(5) "Excess disbursement amount" means the amount of disbursements made
16by a nonparticipating candidate in excess of the public financing benefit available to
17an eligible candidate for the same office that the nonparticipating candidate seeks.
AB543,6,20 18(6) "Excess qualifying contribution amount" means the amount of qualifying
19contributions accepted by a candidate beyond the number or dollar amount of
20contributions required to qualify a candidate for a public financing benefit.
AB543,6,23 21(7) "Exploratory period" means the period that begins after the date of a spring
22election immediately preceding a public financing qualifying period and ends on the
23first day of the public financing qualifying period for the next election for justice.
AB543,6,25 24(9) "Immediate family," when used with reference to a candidate, includes the
25candidate's spouse and children.
AB543,7,5
1(10) "Independent disbursement" means a disbursement by a person expressly
2advocating the election or defeat of a clearly identified candidate which is made
3without cooperation or consultation with a candidate, or any authorized committee
4or agent of a candidate, and which is not made in concert with, or at the request or
5suggestion of, any candidate, or any authorized committee or agent of a candidate.
AB543,7,8 6(11) "Nonparticipating candidate" means a candidate for the office of justice
7who does not apply for a public financing benefit or who is otherwise ineligible or fails
8to qualify for a public financing benefit under ss. 11.502 to 11.522.
AB543,7,10 9(12) "Personal funds" means funds contributed by a candidate or a member of
10a candidate's immediate family.
AB543,7,14 11(13) "Primary election campaign period" means the period beginning on the
12day after the last day prescribed by law for filing nomination papers for the office of
13justice and ending on the day of the spring primary election for that office or the day
14on which the primary election would be held, if required.
AB543,7,16 15(14) "Public financing benefit" means a benefit provided to an eligible
16candidate under ss. 11.502 to 11.522.
AB543,7,20 17(15) "Public financing qualifying period" means, for each election for the office
18of justice, the period beginning on the first day of July of the year immediately
19preceding the year of that election and ending on the day before the beginning of the
20primary election campaign period for that office.
AB543,7,24 21(16) "Qualifying contribution" means a contribution in an amount of not less
22than $5 nor more than $100 made to a candidate by an elector of this state during
23the public financing qualifying period, which is acknowledged by written receipt
24identifying the contributor.
AB543,8,6
1(17) "Seed money contribution" means a contribution in an amount of not more
2than $100 made to a candidate by an elector of this state during the exploratory
3period or the public financing qualifying period, or a contribution made to a
4candidate consisting of personal funds of that candidate in an amount not more than
5the amount authorized under s. 11.507 during the exploratory period or the public
6financing qualifying period.
AB543,8,15 711.502 Qualification; certification. (1) Before a candidate for justice in the
8primary election may be certified as an eligible candidate to receive a public
9financing benefit for the primary election campaign period, the candidate shall apply
10to the board for a public financing benefit and file a sworn statement that the
11candidate has complied and will comply with all requirements of this section and ss.
1211.503 to 11.522 throughout the applicable campaign, which includes the primary
13and election for that office. A candidate shall file the application and statement no
14later than the beginning of the primary election campaign period for the office that
15the candidate seeks.
AB543,8,20 16(2) A candidate shall be certified by the board as an eligible candidate for
17receipt of a public financing benefit for a primary election if the candidate complies
18with sub. (1) and receives qualifying contributions from at least 1,000 separate
19contributors in an aggregate amount of not less than $5,000 nor more than $15,000
20before the close of the public financing qualifying period.
AB543,8,23 21(3) The board shall verify a candidate's compliance with the requirements of
22sub. (2) by such verification and sampling techniques as the board considers
23appropriate.
AB543,8,24 24(4) Each candidate shall:
AB543,9,2
1(a) Acknowledge each qualifying contribution by a receipt to the contributor
2which contains the contributor's name and home address.
AB543,9,63 (b) No later than the 15th or the last day of the month which immediately
4follows the date of receipt of a qualifying contribution, whichever comes first, file a
5copy of the receipt under par. (a) with the board, except that during July, August, and
6September a copy need only be filed by the last day of the month.
AB543,9,8 7(5) A qualifying contribution may be utilized only for the purpose of making
8a disbursement authorized by law.
AB543,9,16 911.503 Time of application. (1) Before a candidate may be certified as
10eligible for receipt of a public financing benefit for the spring election, the candidate
11shall apply to the board and file a sworn statement that the candidate has fulfilled
12all the requirements of ss. 11.502 to 11.522 during the primary election campaign
13period and will comply with such requirements during the election campaign period.
14Except as authorized in s. 8.35 (4) (b), the application shall be filed no later than the
157th day after the date of the spring primary or the date that the primary election
16would be held if a primary were required.
AB543,9,20 17(2) The board shall certify a candidate as an eligible candidate for receipt of a
18public financing benefit for the spring election if the candidate complies with sub. (1)
19and the candidate was an eligible candidate during the primary election campaign
20period.
AB543,9,25 2111.505 Agreement by candidate. An eligible candidate who accepts a public
22financing benefit under ss. 11.502 to 11.522 during the primary election campaign
23period shall agree to comply with all requirements of ss. 11.502 to 11.522 throughout
24the election campaign period during the same campaign as a precondition to receipt
25of a public financing benefit. An eligible candidate who accepts a public financing

1benefit during a primary election campaign period may not elect to accept private
2contributions in violation of ss. 11.502 to 11.522 during the corresponding election
3campaign period.
AB543,10,7 411.506 Requirements imposed upon candidates. (1) An eligible
5candidate shall not accept private contributions other than seed money
6contributions and qualifying contributions that the candidate accepts during the
7exploratory period and the public financing qualifying period.
AB543,10,15 8(2) In addition to reports required to be filed under ss. 11.12 (5) and 11.20, a
9candidate who receives a public financing benefit shall furnish complete financial
10records, including records of seed money contributions, qualifying contributions, and
11disbursements, to the board on the 15th or the last day of the month that
12immediately follows the receipt of the contribution or the making of the
13disbursement, whichever comes first, except that during July, August, and
14September records need only be furnished by the last day of the month. Each such
15candidate shall cooperate with any audit or examination by the board.
AB543,10,24 16(3) In addition to adhering to requirements imposed under ss. 11.06 (5) and
1711.12 (3), a candidate who receives a public financing benefit shall maintain records
18of all contributions received by the candidate of more than $5 but less than $50,
19including seed money contributions and qualifying contributions, which shall
20contain the full name of the contributor and the contributor's full home address. In
21addition, if a contributor's aggregate contributions to any candidate exceed $50 for
22any campaign, the candidate shall also maintain a record of the contributor's
23principal occupation and the name and business address of the contributor's place
24of employment.
AB543,11,3
1(4) The failure to record or provide the information specified in sub. (3)
2disqualifies a contribution from being used by a candidate as a qualifying
3contribution.
AB543,11,6 4(5) No eligible candidate and no person acting on a candidate's behalf may
5deposit any contribution that is not recorded in accordance with sub. (3) in a
6candidate's campaign depository account.
AB543,11,10 7(6) No eligible candidate may accept more than $25 in cash from any
8contributor. No eligible candidate may accept cash from all sources in a total amount
9greater than one-tenth of 1 percent of the public financing benefit for the office that
10the candidate seeks or $500, whichever is greater.
AB543,11,13 1111.507 Personal funds of candidates. (1) The personal funds of a candidate
12contributed as seed money contributions may not exceed an aggregate amount of
13$5,000.
AB543,11,15 14(2) No eligible candidate may make any disbursement derived from personal
15funds after the close of the public financing qualifying period.
AB543,11,22 1611.508 Seed money contributions. (1) An eligible candidate may accept
17seed money contributions from any individual or committee prior to the end of the
18public financing qualifying period, provided the total contributions received from one
19contributor, except personal funds and qualifying contributions otherwise permitted
20under ss. 11.502 to 11.522, do not exceed $100, and the aggregate contributions,
21including personal funds, but not including qualifying contributions, do not exceed
22$5,000.
AB543,11,25 23(2) An eligible candidate may make disbursements derived from seed money
24contributions only during the exploratory period and the public financing qualifying
25period.
AB543,12,7
111.509 Excess contributions. If an eligible candidate receives and accepts
2excess seed money contributions or qualifying contributions in an aggregate amount
3greater than the limits prescribed in s. 11.502 (2) or 11.508 (1), the candidate shall
4transfer to the board all seed money and qualifying contributions that exceed the
5limits prescribed in this section within 48 hours after the end of the public financing
6qualifying period. The board shall deposit all contributions transferred under this
7section in the democracy trust fund.
AB543,12,14 811.51 Certification by candidate. (1) To apply for a public financing benefit,
9a candidate shall certify to the board that the candidate has complied and will
10comply, throughout the applicable campaign, with all requirements of ss. 11.502 to
1111.522 and that all disclosures required as of the time of application have been made,
12and shall present evidence of the requisite number of qualifying contributions
13received by the candidate. The candidate's request for certification shall be signed
14by the candidate and the candidate's campaign treasurer.
AB543,12,22 15(2) The board shall certify to the state treasurer the name of each eligible
16candidate at the spring primary together with the amount of the public financing
17benefit payable to the candidate promptly after the candidate demonstrates his or
18her eligibility and, in any event, not later than 5 days after the end of the public
19financing qualifying period. The state treasurer shall immediately credit that
20candidate's account with a line of credit for the amount certified. No candidate may
21utilize a line of credit received under this subsection until the beginning of the
22primary election campaign period.
AB543,13,6 23(3) The board shall certify to the state treasurer the name of each eligible
24candidate at the spring election together with the amount of the public financing
25benefit payable to the candidate not later than 48 hours after the date of the spring

1primary election for the office of justice, or the date that the primary election would
2be held if a primary were required. The state treasurer shall immediately credit that
3candidate's account with a line of credit for the amount certified. However, no
4candidate for a particular office shall receive a line of credit until all candidates for
5the office of justice who apply and qualify for a public financing benefit have been
6certified as eligible candidates.
AB543,13,12 7(4) If any candidate who receives a public financing benefit violates the
8requirements of ss. 11.502 to 11.522, the board shall require the candidate to repay
9the amount obligated by the candidate from the democracy trust fund for the primary
10or election campaign period for which the candidate received the benefit. The board
11shall deposit all repayments received under this subsection in the democracy trust
12fund.
AB543,13,21 1311.511 Public financing benefits. (1) The state treasurer shall provide to
14each eligible candidate who qualifies to receive a public financing benefit for the
15primary or election campaign period separate lines of credit for the public financing
16benefits payable to the candidate for the primary and election campaign periods in
17the amounts specified in this section. An eligible candidate may use this public
18financing benefit to finance any lawful disbursements during the primary and
19election campaign periods to further the election of the candidate in that primary or
20election. An eligible candidate shall not use this public financing benefit to repay any
21loan, or in violation of ss. 11.502 to 11.522 or any other applicable law.
AB543,13,23 22(2) The public financing benefit for a primary election campaign period is
23$100,000.
AB543,13,24 24(3) The public financing benefit for an election campaign period is $300,000.
AB543,14,2
1(4) If there is no spring primary for the office of justice, no eligible candidate
2may receive a public financing benefit for the primary election campaign period.
AB543,14,7 3(5g) An eligible candidate who receives a public financing benefit in the
4primary election campaign period and whose name is certified to appear on the ballot
5at the election following that primary may utilize any unencumbered balance of the
6public financing benefit received by the candidate in the primary election campaign
7period for the election campaign period.
AB543,14,12 8(5r) Except as permitted in sub. (5g), an eligible candidate who receives a
9public financing benefit and who does not encumber or expend some portion of the
10benefit for a purpose described in sub. (1) shall return any unencumbered portion of
11the benefit to the board within 30 days after the primary or election in which the
12candidate participates.
AB543,14,17 13(6) Notwithstanding subs. (2) and (3), beginning on July 1, 2016, and every 2
14years thereafter, the board shall modify the public financing benefits provided for in
15subs. (2) and (3) to adjust for the change in the consumer price index, all items, U.S.
16city average, published by the U.S. department of labor for the preceding 2-year
17period ending on December 31.
AB543,14,25 18(7) No candidate for the office of justice who files an application for a public
19financing benefit and certification under s. 11.51 (1) and who accepts a public
20financing benefit may make or authorize total disbursements in a campaign,
21beginning with the first day of the exploratory period and ending on the date of the
22spring election, to the extent of more than the maximum amounts specified in ss.
2311.502 (2) and 11.508 (1), plus the amount specified in s. 11.511 (3), as adjusted under
24s. 11.511 (6), and, if there is a primary for the office of justice, the amount specified
25in s. 11.511 (2), as adjusted under s. 11.511 (6).
AB543,15,3
111.515 Democracy trust fund. The democracy trust fund shall be
2administered by the state treasurer. The state treasurer shall establish an account
3within the fund for each eligible candidate.
AB543,15,6 411.516 Administration. Except as otherwise specifically provided in ss.
511.501 to 11.522, the duties of and authority for administering and enforcing ss.
611.501 to 11.522 are vested in the board.
AB543,15,12 711.517 Penalties; enforcement. (1) Notwithstanding s. 11.60 (1), if an
8eligible candidate makes disbursements that exceed the total amount of the public
9financing benefit allocated to the candidate for any campaign and the total
10qualifying and seed money contributions lawfully accepted by the candidate, the
11candidate may be required to forfeit not more than 10 times the amount by which the
12disbursements exceed the allocation.
AB543,15,16 13(2) Notwithstanding s. 11.60 (1), any eligible candidate who accepts
14contributions in excess of any limitation imposed under ss. 11.502 to 11.522 may be
15required to forfeit not more than 10 times the amount by which the contributions
16exceed the applicable limitation.
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