Current law specifies limitations on the maximum amount of contributions
which may be given to and accepted by a candidate for state or local office. Current
law also limits the total contributions that a candidate for state or local office may
accept from all political committees, including political party and legislative
campaign committees, and from the Wisconsin election campaign fund to 65% of the
value of the statutory disbursement level specified for the office which the candidate
seeks. The total amount that a candidate may accept from committees other than
political party and legislative campaign committees and from the Wisconsin election
campaign fund is limited to 45% of that disbursement level.

This bill changes contribution limitations applicable to individuals and
committees making contributions to candidates for the office of governor, lieutenant
governor, secretary of state, state treasurer, attorney general, state superintendent
of public instruction, justice of the supreme court, state senator or representative to
the assembly per campaign, as follows: - See PDF for table

The bill also creates a new contribution limitation which prohibits any
candidate for state or local office from accepting total contributions from all political
committees, including political party and legislative campaign committees and
committees serving as conduits (see below), equal, in the aggregate, to more than
25% of the value of the statutory disbursement level specified for the office which the
candidate seeks.

This bill creates the following new prohibitions on contributions:

1. It prohibits contributions from special interest ("political action")
committees, including conduit committees, and from individuals operating as
conduits to incumbents who are seeking reelection to a partisan state office from the
first Monday in January of each odd-numbered year through the enactment of the
biennial budget act and, thereafter, during any floorperiod, including any special or
extraordinary session floorperiod. The prohibition does not apply to contributions
to an incumbent who is a candidate for state office at a special election during the
period beginning on the date that a special election is ordered and ending on the date
of the special election.

2. It prohibits any lobbyist from making a contribution to a partisan elective
state official or candidate for a partisan elective state office or to such an official's or
candidate's personal campaign committee. Currently, a lobbyist may make such a
contribution in the year that an official or candidate seeks election between June 1
and the day of the general election.

3. It prohibits any candidate from making a contribution to another candidate
except to dispose of residual contributions in the candidate's campaign treasury upon
termination of registration. The bill also prohibits any candidate from accepting a
contribution made by another candidate except upon termination of registration by
the other candidate. Currently, a candidate is generally permitted to make a
contribution for any political purpose that is not specifically prohibited by law.

Under current law, a "conduit" is an individual or organization that receives a
contribution and transfers the contribution to another individual or organization
without exercising discretion as to the amount that is transferred and the individual
to whom or the organization to which the transfer is made. When a conduit transfers
a contribution, the conduit is required to identify itself in writing to the transferee
as a conduit and to report to the transferee information about the original
contributor. The conduit must include this information in its financial reports for the
date on which the contribution was received and transferred. The campaign
financing reports filed by the candidate identify only the original contributor, not the
conduit. A contribution from a conduit is considered to be a contribution from the
original contributor and, for the purpose of contribution limitations, a contribution

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of money received from a conduit which is properly identified and reported is
considered to be a contribution received from the original contributor. Contributions
received by a candidate for state office from an individual through a conduit may be
used to qualify for a grant from the Wisconsin election campaign fund.

This bill requires the campaign finance reports filed by candidates to identify
any conduit from whom a contribution is received, as well as the original contributor.

The bill also treats conduits in the same manner as "political action
committees" by:

1. Not allowing contributions made by an individual through a conduit to be
used to qualify for a grant from the Wisconsin election campaign fund.

2. Subjecting contributions from conduits to the same limitations that
currently apply to the amount of contributions that a candidate may accept from any
committee other than a political party or legislative campaign committee and to the
new limitation upon receipt of aggregate contributions from committees imposed
under the bill.

Currently, individuals who accept contributions, organizations which make or
accept contributions, or individuals who or organizations which incur obligations or
make disbursements for the purpose of influencing an election for state or local office
are generally required to register with the appropriate filing officer and to file
financial reports with that officer, regardless of whether they act in conjunction with
or independently of any candidate who is supported or opposed. Currently, when a
person is alleged to have violated registration and reporting requirements, the state
has the burden of proving that the violation occurred.

This bill provides that, whenever any person publishes, disseminates or
broadcasts any communication that includes a reference to a candidate for an office
to be filled at an election, during the 60-day period preceding that election or during
the 30-day period preceding any primary for that election, and the communication
is substantially directed toward the electorate for that election, it is presumed that
the communication is made for the purpose of influencing the election or nomination
for election of that candidate, unless the person making the communication
establishes, by a preponderance of the evidence, that the communication was not
made for that purpose.

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. All moneys
transferred to the fund are placed in accounts for specified state offices, and
candidates for those offices at the general or a special election may qualify for grants
from the fund to be used for specified campaign expenses. No moneys in the fund may
be used for any other purpose. Grants at special elections are funded by reallocating

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moneys set aside to provide grants to candidates at the general election, to the extent
that moneys are available.

This bill:

1. Increases the amount of the individual income tax checkoff for the Wisconsin
election campaign fund from $1 to $5. Under the bill, individuals filing a joint return
may separately choose whether to make the $5 checkoff. The bill also permits
individuals to determine whether to designate their checkoffs for a "general
account", which is distributed in the same manner as currently provided, or for the
account of an eligible political party (see below).

2. Provides a sum sufficient appropriation from general purpose revenue to
supplement the amounts otherwise available for campaign financing through the
Wisconsin election campaign fund equal to $3,000,000 in each fiscal year plus, in
each fiscal year, the amount determined by the secretary of revenue to have been
collected by the state from the campaign treasury surplus earnings tax imposed
under this bill, and the elimination of the corporate income and franchise tax
deduction for lobbying expenses under this bill (see below).

3. Directs the state elections board to set aside 5% of the moneys transferred
to the Wisconsin election campaign fund in each of the six years following the year
in which the bill becomes law in order to provide public information concerning the
purpose and effect of designations to the fund. The bill directs the department of
revenue to cooperate in providing such public information. Currently, no moneys in
the fund are authorized to be used for this purpose.

Under current law, public financing from the Wisconsin election campaign fund
is available to eligible candidates for the offices of state senator, representative to the
assembly, governor, lieutenant governor, attorney general, state treasurer, secretary
of state, justice of the supreme court and superintendent of public instruction. To
receive a grant, a candidate must file an application with the state elections board
no later than the deadline for filing nomination papers. Following the primary
election or the date on which a primary would be held, if required, the board
determines whether a candidate who applies for a grant meets the following
eligibility requirements:

1. If the candidate seeks a partisan state office at a general election, the
candidate must have received at least 6% of the total votes cast in the primary and
won the primary. If the candidate seeks a partisan state office at a special election,
the candidate must either: a) appear on the ballot or in the column of a political party
whose candidate for the same office at the preceding general election received at least
6% of the vote; or b) receive at least 6% of the votes cast at the special election.

2. The candidate must have an opponent in the election.

3. The candidate must receive, during a specified time period, a specified
amount through contributions from individuals of $100 or less. For a candidate for
the office of governor, lieutenant governor, secretary of state, state treasurer,
attorney general, justice of the supreme court or superintendent of public
instruction, the amount is 5% of the authorized disbursement level for the office
which the candidate seeks. For a candidate for the office of state senator or

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representative to the assembly, the amount is 10% of the authorized disbursement
level for the office which the candidate seeks.

Under current law, a candidate for any office who accepts a grant must comply
with statutorily prescribed contribution and disbursement limitations, unless one or
more of the candidate's opponents who receive at least 6% of the votes cast for all
candidates for that office at a partisan primary, if a primary was held, do not accept
a grant and do not voluntarily comply with the contribution and disbursement
limitations for that office. Currently, a candidate is no longer bound by disbursement
limitations after the last day of the month following the election in which the
candidate appears on the ballot. The maximum grant that a candidate may receive
is that amount which, when added to all other contributions accepted from sources
other than individuals, political party committees and legislative campaign
committees, is equal to 45% of the authorized disbursement level for the office which
the candidate seeks, if there are sufficient moneys in the Wisconsin election
campaign fund to finance the full amount of grants for which candidates qualify.

Currently, a candidate may use moneys in his or her campaign treasury for any
political purpose not prohibited by law.

This bill:

1. Provides that all candidates for partisan state offices need receive
contributions from individuals equal to only 5% of the authorized disbursement level
for the office which the candidate seeks in order to qualify for a grant, but provides
that the contributions must be in amounts of $50 of or less. The bill also provides that
at least 50% of the qualifying contributions must be received from individuals who
are residents of this state and, in the case of a candidate for legislative office, at least
50% of the contributions must be received from individuals who reside in the district
in which the candidate seeks office.

2. Increases the maximum grant that a candidate may receive to 50% of the
authorized disbursement level for the office which the candidate seeks, irrespective
of contributions received from other sources.

3. Retains the current system of grants from a "general account" for which
moneys may be designated by tax filers, except that it increases by 50% the amounts
allocated for the offices of justice of the supreme court and state superintendent of
public instruction. Under the bill, amounts otherwise payable from the general
account to a candidate who reaches this limit are redistributed to other qualifying
candidates who have not reached this limit, if any.

4. Permits political parties that qualify for a separate column or row on the
ballot at the general election to obtain grants from checkoffs made by tax filers. The
bill provides for 9.7% of the moneys designated for political parties by tax filers to be
paid directly as grants to the designated parties to be used for specified
multicandidate expenses. Under the bill, disbursements made by a political party
from such a grant are not considered to be in-kind contributions to the candidates
who benefit from the disbursements. The bill provides for 97% of the remaining
moneys designated by tax filers to be paid to candidates of the designated parties for
state offices, except the office of district attorney, in accordance with an
apportionment formula specified in the bill that takes into account, in the case of

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candidates for legislative office, the votes cast for candidates of the designated party
for partisan state offices, except the office of district attorney, within each legislative
district. Amounts otherwise payable to a candidate who would qualify to receive a
grant if the candidate had an opponent are redistributed to the parties for
multicandidate expenses. Amounts otherwise payable to a candidate for an office for
which a party has no candidate or to a candidate who is opposed but who fails to
qualify for a grant are lapsed to the state general fund.

5. Provides that an agreement by a candidate for state office to be bound by
contribution and disbursement limitations becomes effective on the first day of the
second month following the previous election for an office, or the date that the
application containing the agreement is filed, whichever is later. An application may
be filed no later than the deadline provided under current law. An agreement
remains binding until the end of the month following the month in which the election
is held for which a grant is provided, unless the board determines that the candidate
who entered into the agreement does not qualify for a grant or unless the candidate
who enters into the agreement becomes a candidate at a special election.

6. Provides for grants payable to candidates for state office at special elections
to be payable in full from general purpose revenue.

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, intentional violators are guilty of a
misdemeanor and are subject to a fine of not more than $1,000 or imprisonment for
not more than six months or both. This bill provides, in addition, that, if any
candidate or campaign treasurer of a candidate who accepts a grant violates the
agreement to limit self-contributions and disbursements that was entered into by
that candidate, the candidate is personally liable for a forfeiture of not more than
four times the amount of any unlawful contributions or disbursements made.

Currently, if a candidate or any other registrant violates the campaign finance
law, any forfeitures incurred by the registrant may be paid from the campaign
depository account of the registrant. This bill provides that no moneys derived from
contributions that are reportable under the campaign finance law may be used to pay
any forfeiture incurred by a candidate or candidate's campaign treasurer. Under the
bill, if a candidate or candidate's campaign treasurer violates the law, the candidate
is personally liable for payment of the forfeiture. A campaign treasurer and personal
campaign committee also remain liable for payment of any forfeitures that they
incur.

All campaign finance changes under the bill apply to elections held on or after
the day on which the bill becomes law.

This bill permits any individual who is a resident of this state and of eligible
voting age to request a refund from the department of revenue of not more than $50
per year for any contribution or contributions of money made to a qualifying

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candidate for state office or political party. The bill also permits two married
individuals who are both residents of this state and are of eligible voting age to file
a joint request for a refund of not more than $100 per year for such contributions
made jointly or individually. In order to qualify for a refund, a contribution must be
made to a political party that has qualified for a separate ballot or one or more
separate columns or rows on a ballot or to a candidate for state office who has filed
a valid application to receive a grant from the Wisconsin election campaign fund,
together with a binding agreement to abide by disbursement and self-contribution
limitations, and has qualified to receive a grant. For a contribution to a candidate
to be eligible for a refund, the candidate must have a signed agreement in effect at
the time that a contribution is made. The refunds are made by the department of
revenue from general purpose revenue.

This bill imposes a tax on every candidate and personal campaign committee
at the rate of 15% on the earnings received by that candidate or committee on any
campaign treasury surplus during the period beginning on the first day of the month
following an election at which a candidate appears on the ballot (except a primary
election if the candidate was nominated at the primary to appear on the ballot at a
subsequent election) and ending on the date that the candidate files a valid
declaration of candidacy together with valid nomination papers, if required, to
appear on the ballot at a succeeding election. The tax is payable to the department
of revenue semiannually.

This bill eliminates a current corporate income and franchise tax deduction for
certain business expenses that lobbyists incur. Currently, this deduction may be
claimed for expenses incurred in direct connection with: a) appearances before,
submission of statements to, or sending communications to a federal, state or local
legislative body, a legislative committee or an individual legislator with respect to
legislation or proposed legislation of direct interest to a taxpayer; or b)
communications between a taxpayer and an organization of which the taxpayer is
a member with respect to legislation or proposed legislation of direct interest to the
taxpayer and the organization. Under the bill, dues paid to any organization remain
deductible to the extent that they are attributable to expenses of these activities.