AB65: Bill Text

LRB-1600/1

JTK&MES:kjf:rs

2009 - 2010 LEGISLATURE

2009 Assembly BILL 65

February 17, 2009 - Introduced by Representatives Hintz, Hilgenberg, Smith, Garthwaite, Benedict, Roys, Hebl, Staskunas, Turner, Parisi, Cullen, Jorgensen, Richards, Zepnick, Pocan, Pope-Roberts, Clark, Shilling, Hubler, Black, Berceau, Grigsby, Molepske Jr. and Kessler, cosponsored by Senators Kreitlow, Taylor, Lehman, Erpenbach, Miller, Risser, Lassa, Hansen, Wirch, Vinehout, Schultz and Sullivan. Referred to Committee on Elections and Campaign Reform.

AB65,1,8 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., 11.50 (3) (b), 11.60 (4), 11.61 (2), 20.855 (4) (b) and 71.10 (3) (a); and to create 11.26 (1) (am), 11.26 (2) (an), 11.26 (9) (ba), 11.501 to 11.522, 20.511 (1) (r), 20.585 (1) (q), 20.585 (1) (r), 20.855 (4) (ba), 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, making appropriations, and providing penalties.

Analysis by the Legislative Reference Bureau

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 currently 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 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. 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 may not receive 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 by more than 20 percent the amount of the public financing benefit for the office that the candidate seeks, but may not receive 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.

Under current law, the Wisconsin election campaign fund is 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 $1 of general purpose revenue be transferred to the fund. Individuals filing a joint return may separately choose whether to direct that the $1 transfer be made. The designation does not increase an individual's tax liability nor reduce an individual's refund. This bill increases the amount of the individual income tax checkoff for the Wisconsin election campaign fund from $1 to $3. Under the bill, individuals filing a joint return may separately choose whether to make the $3 checkoff. Under the bill, $2 of each $3 designation is deposited into the democracy trust fund, and the remaining $1 is deposited into the Wisconsin election campaign fund, as currently provided. 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:

AB65, s. 1 Section 1. 8.35 (4) (b) of the statutes is amended to read:

AB65,4,15 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.

AB65, s. 2 Section 2. 11.12 (2) of the statutes is amended to read:

AB65,5,4 11.12 (2) Any No registrant, other than 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.

AB65, s. 3 Section 3. 11.16 (2) of the statutes is amended to read:

AB65,5,12 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.

AB65, s. 4 Section 4. 11.16 (3) of the statutes is amended to read:

AB65,5,24 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.

AB65, s. 5 Section 5. 11.26 (1) (a) of the statutes is amended to read:

AB65,6,2 11.26 (1) (a) Candidates for governor, lieutenant governor, secretary of state, state treasurer, attorney general, or state superintendent or justice, $10,000.

AB65, s. 6 Section 6. 11.26 (1) (am) of the statutes is created to read:

AB65,6,4 11.26 (1) (am) Candidates for justice, $1,000.

AB65, s. 7 Section 7. 11.26 (2) (a) of the statutes is amended to read:

AB65,6,8 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).

AB65, s. 8 Section 8. 11.26 (2) (an) of the statutes is created to read:

AB65,6,10 11.26 (2) (an) Candidates for justice, $1,000.

AB65, s. 9 Section 9. 11.26 (9) (a) of the statutes is amended to read:

AB65,6,17 11.26 (9) (a) No Except as provided in par. (ba), 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 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.

AB65, s. 10 Section 10. 11.26 (9) (b) of the statutes is amended to read:

AB65,6,24 11.26 (9) (b) No Except as provided in par. (ba), 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 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.

AB65, s. 11 Section 11. 11.26 (9) (ba) of the statutes is created to read:

AB65,7,2 11.26 (9) (ba) Paragraphs (a) and (b) do not apply to a candidate who receives a public financing benefit from the democracy trust fund.

AB65, s. 12 Section 12. 11.26 (13) of the statutes is amended to read:

AB65,7,6 11.26 (13) Except as provided in sub. (9), contributions received from the Wisconsin election campaign fund and public financing benefits received from the democracy trust fund are not subject to limitation by this section.

AB65, s. 13 Section 13. 11.31 (1) (d) of the statutes is amended to read:

AB65,7,9 11.31 (1) (d) Candidates for secretary of state, state treasurer, justice or state superintendent, $215,625.

AB65, s. 14 Section 14. 11.50 (1) (a) 1. of the statutes is amended to read:

AB65,7,18 11.50 (1) (a) 1. With respect to a spring or general election, any individual who is certified under s. 7.08 (2) (a) as a candidate in the spring election for justice or state superintendent, or an individual who receives at least 6% of the vote cast for all candidates on all ballots for any state office, except district attorney, for which the individual is a candidate at the September primary and who is certified under s. 7.08 (2) (a) as a candidate for that office in the general election, or an individual who has been lawfully appointed and certified to replace either such individual on the ballot at the spring or general election; and who has qualified for a grant under sub. (2).

AB65, s. 15 Section 15. 11.50 (3) (a) 2. of the statutes is repealed.

AB65, s. 16 Section 16. 11.50 (3) (b) of the statutes is amended to read:

AB65,8,2 11.50 (3) (b) If a vacancy occurs in the office of state superintendent or justice after August 15 in any year and an election is scheduled to fill the vacancy at the spring election in the following year, the state treasurer shall transfer an amount not exceeding 8 percent of the moneys transferred to the fund on the preceding August 15 to the superintendency account for the office in which the vacancy occurs, such moneys to be drawn from any account within the accounts created under sub. (4) in the amount or amounts specified by the board.

AB65, s. 17 Section 17. 11.501 to 11.522 of the statutes are created to read:

AB65,8,4 11.501 Definitions. In ss. 11.501 to 11.522: