NOTICE IS HEREBY GIVEN that pursuant to ss. 5.05 (1) (f) and 227.11 (2) (a), Stats., the Government Accountability Board will hold a public hearing to consider adoption of a rule to create Chapter GAB 22 relating to settlement of certain campaign finance, ethics and lobbying violations.

The public hearing will be held at the time and location shown below:

Date and Time	Location
July 28, 2009 10:00 a.m.	Government Accountability Board Office 212 E. Washington Avenue 3rd Floor Madison, WI 53703

This public hearing site is accessible to individuals with disabilities. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please contact the person listed below.

Comments on the proposed rules should be submitted to the Government Accountability Board, 212 East Washington Ave., P.O. Box 7984, Madison, Wisconsin 53707-7984; (elections.state.wi.us). Comments should be submitted by July 28, 2009.

Sections 5.05 (2m) (c) 12., 11.05, 11.055, 11.06, 11.12, 11.20, 11.21, 11.26, 13.625, 13.64, 13.65, 13.66, 13.67, 13.68, and 19.43, Stats.

Sections 5.05 (1) (f) and (2m) (c) 12. and 227.11 (2) (a), Stats.

Pursuant to s. 5.05 (2m) (c) 12., Stats., the legislature specifically authorized the Board to prescribe, by rule, categories of civil offenses which the Board will agree to compromise and settle without a formal investigation and upon payment of specified amounts by the alleged offender.

Chapter 11, Stats.—Campaign Financing, subch. III of ch. 13, Stats.—Regulation of Lobbying, and subch. III ch. 19, Stats.—Code of Ethics for Public Officials and Employees. Chapter GAB 1—Campaign Financing.

Chapter GAB 22 will establish settlement offer guidelines that the Government Accountability Board's staff may use to resolve certain violations of chapters 11, 13, and 19, Stats., in lieu of an enforcement action.

Federal regulations will not apply to the activities covered by ch. GAB 22. The Federal Election Commission has established various formulas and charts for automatic administrative civil penalties for late filing of federal reports that are based upon the amount of activity during the reporting period. See 11 CFR 111.43.

Illinois statutes prescribe an automatic civil penalty of $25.00 per business day for late filing or failing to file statements of organization of political committees, except that the civil penalty for committees formed to support candidates for statewide offices is $50.00 per business day. 10 ILCS 5/9-3. Illinois has administrative rules regarding civil penalties for late campaign finance reports, categorized based upon the amount of receipts, expenditures and balance at the end of the report. See 26 Ill. Adm. Code §125.425. These civil penalties range from the lowest category of $25.00 per business day for the first violation, $50.00 per business day for the second violation. and $75.00 per business day for the third and each subsequent violation, to the highest category of $200.00 per business day for the first violation, $400.00 per business day for the second violation, and $600.00 per day for the third and each subsequent violation. Id.

Iowa's Ethics and Campaign Disclosure Board has the authority to administratively resolve late reports by assessment of automatic civil penalties prescribed by the Board. Ch. 351-9.4(5), Iowa Adm. Code.

Michigan has rules prescribing automatic late fees for registration, reports and statements for lobbying and campaign finance matters. Rs. 4.443, 4.452, and 169.4, Mich. Adm. Code. The automatic late fee for campaign registration statements is $10.00 per business day. See s. 169.224, Mich. Stats. The automatic late fees for campaign finance reports are $25.00 for each business day it remains unfiled, an additional $25.00 for each business day after the first three that the report remains unfiled, and an additional $50.00 for each business day after the first ten that the report remains unfiled. s. 169.233, Mich. Stats.

In Minnesota, the Office of Administrative Hearings has used a “penalty matrix" designed by the Secretary of State's Office to provide guidance for most campaign finance violations.

Adoption of these rules was primarily predicated upon the legislature's specific authorization to have the Government Accountability Board prescribe, by rule, categories of civil offenses which the Board will agree to compromise and settle without a formal investigation and upon payment of specified amounts by the alleged offender.

The rule will have no effect on small business, nor any economic impact.

The creation of this rule does not affect business.

The creation of this rule has no new fiscal effect.

CHAPTER GAB 22
SETTLEMENT OFFER SCHEDULE

22.01 Definitions. In this chapter:

(1) “Board" means the Wisconsin government accountability board.

(2) “Campaign finance registration statement" means the statement required to be filed by individuals, committees and groups under s. 11.05, Stats.

(3) “Continuing campaign finance report" means the semi-annual campaign finance report required under s. 11.20 (4), Stats.

(4) “Contribution" has the meaning given in s. 11.01 (6), Stats.

(5) “Contributor" means an individual or committee who makes a contribution under s. 11.01 (6), Stats.

(6) “Contributor information" means the information required by s. 11.06 (1), Stats., regarding contributions greater than $20 or greater than $100.

(7) “Disbursement" has the meaning given in s. 11.01 (7), Stats.

(8) “Disbursement information" means the information required by s. 11.06(1), Stats., regarding disbursements greater than $20.

(9) “Excess contribution" means a contribution that exceeds any of the limits set in s. 11.26, Stats.

(10) “File electronically" means the requirement in s. 11.2l (16), Stats., that registrants subject to that subsection file a copy of their campaign finance reports in electronic format.

(11) “Filing fee" means the fee required by s. 11.055, Stats.

(12) “Last-minute contribution" means the contribution or contributions described in s. 11.12 (5), Stats., that are made later than 15 days prior to a primary or an election.

(13) “Lobbyist" has the meaning given in s. 13.62 (11), Stats.

(14) “Pre-primary report or pre-election campaign finance report" means the campaign finance reports referred to in s. 11.20 (2), Stats., that are due no earlier than 14 days before a primary or election and no later than 8 days before a primary or election.

(15) “Principal" has the meaning given in s. 13.62 (12), Stats.

(16) “Registrant" has the meaning given in s. 11.01 (18m) Stats.

(17) “Statement of economic interests" has the meaning given in s. 19.43, Stats.

22.02 Settlement of campaign finance violations. (1) VIOLATIONS OF S. 11.05, STATS., FAILURE TO TIMELY FILE A CAMPAIGN FINANCE REGISTRATION STATEMENT. (a) If a campaign finance registration statement is received within 5 days after the due date for that registration, no penalty may be imposed on the registrant.

(b) If a campaign finance registration statement is received within 6 to 10 days after the due date for that registration, a settlement offer of $100 may be extended to the registrant.

(c) If a campaign finance registration statement is received within 11 to 15 days after the due date for that registration, a settlement offer of $250 may be extended to the registrant.

(d) If a campaign finance registration is received more than 15 days after the due date for that registration, a settlement offer of $500 may be extended to the registrant.

(e) Notwithstanding the settlement terms provided in pars. (a) to (d), the board may consider mitigating circumstances, including the registrant's low level of activity, in determining the amount of the settlement offer that may be extended to the registrant.

(2) VIOLATIONS OF S. 11.20 (4), STATS., FAILURE TO TIMELY FILE THE CONTINUING CAMPAIGN FINANCE REPORT. (a) If a continuing campaign finance report is received within 5 days after the due date for that report, no penalty may be imposed on the registrant.

(b) If a continuing campaign finance report is received within 6 to 10 days after the due date for that report, a settlement offer of $200 may be extended to the registrant.

(c) If a continuing campaign finance report is received within 11 to 15 days after the due date for that report, a settlement offer of $500 may be extended to the registrant.

(d) If a continuing campaign finance report is received within 16 to 30 days after the due date for that report, a settlement offer of $500, plus $25 per day or, for a candidate committee, .1 % of the annual salary of the office for which the candidate is registered per day, may be extended to the registrant.

(e) If a continuing campaign finance report is received more than 30 days after the due date for that report, a settlement offer of $500, plus $50 per day or, for a candidate committee, .5% of the annual salary of the office for which the candidate is registered per day, may be extended to the registrant.

(f) Notwithstanding the settlement terms provided pars. (a) to (e), the board may consider mitigating circumstances, including the registrant's level of activity under $1,000 in receipts, in determining the amount of the settlement offer that may be extended to the registrant.

(3) VIOLATIONS OF S. 11.20 (2), STATS., FAILURE TO TIMELY FILE THE PRE-PRIMARY OR PRE-ELECTION CAMPAIGN FINANCE REPORTS. (a) If a pre-primary or pre-election campaign finance report is received within 1 day after the due date for that report, no penalty may be imposed on the registrant.

(b) If a pre-primary or pre-election campaign finance report is received within 2 days after the due date for that report, a settlement offer of $250 may be extended to the registrant.

(c) If a pre-primary or pre-election campaign finance report is received within 3 days after the due date for that report, a settlement offer of $500 may be extended to the registrant.

(d) If a pre-primary or pre-election campaign finance report is received more than 3 days after the due date for that report, a settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day, may be extended to the registrant.

(e) Notwithstanding the settlement terms provided in pars. (a) to (d), the board may consider mitigating circumstances, including the registrant's failure to win the primary election, in determining the amount of the settlement offer that may be extended to the registrant.

(4) VIOLATIONS OF S. 11.12 (5), STATS., FAILURE TO TIMELY FILE THE 24-HOUR REPORT OF LAST MINUTE CONTRIBUTIONS. (a) If a 24-hour report of last-minute contributions is received within 1 day after the due date for that report, a settlement offer of $500 may be extended to the registrant.

(b) If a 24-hour report of last-minute contributions is received more than 1 day after the due date for that report, a settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day, may be extended to the registrant.

(5) VIOLATIONS OF S. 11.21 (16), STATS., FAILURE TO TIMELY FILE ANY CAMPAIGN FINANCE REPORT ELECTRONICALLY WHEN REQUIRED TO DO SO. The board will extend a settlement offer based on treating the failure to timely file electronically the same as the failure to file a campaign finance report in any other format.

(6) VIOLATIONS OF S. 11.055, STATS., FAILURE TO TIMELY PAY THE FILING FEE.

(a) If a registrant has not paid the filing fee within the time provided by s. 11.055, Stats., but does pay the fee within 10 days after notice of nonpayment from the board, a settlement offer of $300 may be extended to the registrant.

(b) If a registrant has not paid the filing fee within the time provided by s. l1.055, Stats., but does pay the fee within 11 to 18 days after notice of nonpayment from the board, a settlement offer of $500 may be extended to the registrant.

(c) If a registrant has not paid the filing fee within the time provided by s. l1.055, Stats., and does not pay the fee within 18 days after notice of nonpayment from the board, a settlement offer of $500 plus three times the payable fee may be extended to the registrant.

(7) VIOLATIONS OF S. 11.06, STATS., FAILURE TO REPORT ALL REQUIRED CONTRIBUTOR INFORMATION ON A CAMPAIGN FINANCE REPORT. (a) If the contributor information required by s. l1.06, Stats., is not included on a campaign finance report and is not provided within 10 days after the board's notice of failure to comply, the registrant shall be extended a settlement offer consisting of the registrant's donation of the contribution to charity.

(b) If a report of the donation to charity of the prohibited contribution is not provided within 20 days of notice of the board's settlement offer, a settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day, may be extended to the registrant, and the prohibited contribution must be paid to charity.

(c) Notwithstanding the settlement terms provided in pars. (a) and (b), the board may consider mitigating circumstances, including the registrant's inability to obtain the required information from the contributor, in determining the amount of the settlement offer that may be extended to the registrant.

(8) VIOLATIONS OF S. 11.06, STATS., FAILURE TO REPORT ALL REQUIRED DISBURSEMENT INFORMATION ON A CAMPAIGN FINANCE REPORT. (a) If the disbursement information required by s. 11.06, Stats., is not included on a campaign finance report and is not provided within 10 days after the board's notice of failure to comply, the registrant may be extended a settlement offer of $100 plus 10% of the disbursement amount up to a maximum settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day.

(b) If disbursement information required by s. 11.06, Stats., is not included on a campaign finance report and is not provided within 20 days after the board's notice of failure to comply, the registrant may be extended a settlement offer of $100 plus 25% of the disbursement amount up to a maximum settlement offer of $500, plus $50 per day or, in the case of a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day.

(c) If the disbursement information required by s. 11.06, Stats., is not included on a campaign finance report and is not provided within 30 days after the board's notice of failure to comply, the registrant may be extended a settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day.

(9) VIOLATIONS OF S. 11.06 (5), STATS., FAILURE TO TIMELY REPORT THE RECEIPT OF A CONTRIBUTION. (a) If a contribution has not been included on a campaign finance report and the late report of the contribution is filed within 10 days after the due date for reporting the contribution, a settlement offer of 10% of the contribution may be extended to the registrant, up to a maximum settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day.

(b) If the late report of the contribution is filed within 11 to 20 days after the due date for reporting the contribution, a settlement offer of 25% of the contribution may be extended to the registrant, up to a maximum settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day.

(c) If the late report of the contribution is filed more than 20 days after the due date for reporting the contribution, a settlement offer of $500, plus $50 per day or, for a candidate committee, 1% of the annual salary of the office for which the candidate is registered per day, may be extended to the registrant.