AB760: Bill Text

AB760,,1 2023 ASSEMBLY BILL 760

December 6, 2023 - Introduced by Representatives Novak, Melotik, Conley, Gundrum, Mursau, Ortiz-Velez, Penterman and Wichgers, cosponsored by Senators Knodl and James. Referred to Committee on Campaigns and Elections.

AB760,,2 An Act to renumber and amend 11.0202 (2) (d), 11.0505 (3), 11.0605 (3) and 11.1001 (3); to amend 11.0102 (2) (a), 11.0102 (2) (b), 11.0505 (1) (a) 1., 11.0505 (1) (a) 2. (intro.), 11.0505 (1) (a) 3., 11.0505 (1) (b) 1., 11.0505 (1) (b) 2., 11.0505 (1) (b) 3., 11.0505 (1) (b) 4., 11.0605 (1) (a) 1., 11.0605 (1) (a) 2. (intro.), 11.0605 (1) (a) 3., 11.0605 (1) (b) 1., 11.0605 (1) (b) 2., 11.0605 (1) (b) 3., 11.0605 (1) (b) 4., 11.1001 (1) (a) 1., 11.1001 (1) (a) 2. (intro.), 11.1001 (1) (a) 3., 11.1001 (1) (b) 1., 11.1001 (1) (b) 2., 11.1001 (1) (b) 3. and 11.1001 (1) (b) 4.; to repeal and recreate 11.1114; and to create 11.0102 (2) (e), 11.0202 (2) (d) 2., 11.0202 (2) (d) 3., 11.0202 (2) (d) 4., 11.0203 (1) (bd), 11.0303 (1) (bd), 11.0403 (1) (bd), 11.0503 (1) (bd), 11.0505 (3) (a), 11.0505 (3) (b), 11.0505 (3) (c), 11.0603 (1) (bd), 11.0605 (3) (a), 11.0605 (3) (b), 11.0605 (3) (c), 11.0703 (1) (bd), 11.0706, 11.0803 (1) (bd), 11.0903 (1) (bd), 11.1001 (3) (a), 11.1001 (3) (b), 11.1001 (3) (c), 11.1305, 13.62 (12t), 19.55 (2) (e), 19.55 (3) (e) 5. and 6., 19.55 (5) and 19.851 (3) of the statutes; relating to: recommendations from the Ethics Commission regarding campaign finance, lobbying, open records, and closed sessions.

AB760,,3 Analysis by the Legislative Reference Bureau

This bill implements a number of recommendations from the Ethics Commission (the commission) regarding the operations of the commission and the laws that it administers.

CAMPAIGN FINANCE

Registration statement information

Under current law, a person who files a registration statement with the commission, or with some other appropriate filing officer, to form a committee for campaign finance purposes must include on the registration statement the name and mailing address of the committee, the committee treasurer, and any other custodian of committee books and accounts. This bill also requires that a person include on a committee registration statement the email address and personal telephone number of the committee treasurer and any other custodian of the committee books and records. In addition, a candidate committee is required to provide the candidate’s email and personal telephone number. Under the bill, the personal telephone numbers provided on the registration statements are confidential and not subject to inspection and copying as a public record.

Second candidate committee

Current law allows, but does not require, an individual who holds a state or local elective office and who seeks a different state or local elective office to form a second candidate committee. Otherwise current law prohibits a candidate from having more than one candidate committee at the same time. For individuals who establish a second candidate committee, as provided under current law, the bill specifies the methods for transferring funds between the two committees, how to report those transfers, and how to dispose of funds remaining when one or both committees terminate.

Conduit; residual funds

Under current law, a conduit must also register with the commission. A conduit is an entity that receives a contribution from an individual, deposits that contribution in an account held by the entity, and disburses that contribution to a political committee at the direction of the individual who made the contribution. The bill specifies what the conduit must do with funds remaining in its possession when the conduit terminates. Under current law, the conduit must first make a good faith effort to return remaining funds to the original contributors, their surviving spouses, or the executors of their estates. Under the bill, if the terminating conduit is unsuccessful in contacting the individuals who made the original contributions, their surviving spouses, or the executors of their estates, the conduit may donate those remaining funds to the common school fund or to a charitable organization. However, the conduit may not donate remaining funds to a charitable organization that is affiliated with the conduit or a sponsoring organization. Current law defines a sponsoring organization as an entity that establishes, administers, or financially supports a political action committee or an independent expenditure committee.

Administrative suspension

Under current law, a committee that does not anticipate accepting or making contributions, making disbursements, or incurring obligations in an aggregate amount exceeding $2,500 in a calendar year may claim an exemption from filing campaign finance reports by filing a registration statement or an amended registration statement specifying the facts necessary to claim the exemption. The committee must file a statement each year in which it wishes to claim the exemption until such time as the committee files a termination report.

The bill allows a filing agent to terminate any committee that has been exempt from filing campaign finance reports for more than three years. The bill also authorizes the commission to suspend a committee that does not respond to notices and communications sent by the commission.

Reporting of express advocacy

Under current law, a political action committee, independent expenditure committee, or a person other than a committee that spends $2,500 or more on express advocacy for a candidate at an election must report required information to the commission. This information includes the dates on which disbursements were made, the name and address of the persons who received the disbursements, the purpose for making the disbursements, and the amount spent for each act of express advocacy.

The bill clarifies that the reporting requirement applies to express advocacy that will occur during the period beginning 60 days prior to the election and ending on the day of the election. The bill provides that the required information also includes the dates on which obligations were incurred, the name and address of the obligees, the purpose for incurring the obligations, and the amount incurred for each act of express advocacy.

Conduit filing fee

Under current law, each conduit that is required to register and report must have and file with the commission required registration statements and reports. The bill provides that each conduit must pay an annual filing fee of $100 to the commission by January 15 of each year. The bill provides that this requirement does not apply to a conduit in a year in which the conduit does not release contributions totaling more than $2,500.

LOBBYING

Current law allows a lobbyist to make a personal contribution to a partisan elective state official or a candidate for an elective state office between the first day authorized by law for the circulation of nomination papers as a candidate at a general election or special election and the day of the general election or special election. The bill clarifies that the special election must be an election to fill a vacancy in a state office.

OPEN RECORDS

Current law provides that certain records in the possession of the commission are not open for public inspection. Those records include, with limited exceptions, statements of economic interests filed by members of the investment board and the social security numbers of individuals who apply for a lobbyist license. Under the bill, with certain exceptions, records created in the course of conducting an audit to identify a potential violation of the laws administered by the commission are not open for public inspection. However, the bill allows public inspection of audit records containing a finding that there is no reasonable suspicion or probable cause to believe that a violation of the law occurred or that the commission took no action upon finding such reasonable suspicion or probable cause. The bill also allows public inspection of any audit record of the commission issuing a warning, authorizing the filing of a civil complaint, or referring a matter to a district attorney or other prosecutor for investigation or prosecution.

CLOSED SESSIONS

Current law allows a governmental body to meet in closed session for various reasons, including deliberating on a case subject to a judicial hearing, consulting with legal counsel regarding litigation, or considering personnel matters. In addition, current law allows the commission to meet in closed session to consider requests for confidential written advice and for deliberations concerning an investigation of any violation of the law under its jurisdiction. Under the bill, the commission may also meet in closed session to consider whether there is a reasonable suspicion or probable cause to believe that a violation of the law occurred or is occurring based on a complaint or an audit report.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AB760,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB760,1 Section 1. 11.0102 (2) (a) of the statutes is amended to read:

AB760,,6 11.0102 (2) (a) Except as provided in pars. (c) and (d), each conduit or committee that is required to register and file with the commission under sub. (1) (a) shall annually pay a filing fee of $100 to the commission. The commission may accept payment under this subsection by credit card, debit card, or other electronic payment mechanism, and may charge a surcharge to that conduit or committee to recover the actual costs associated with the acceptance of that electronic payment.

AB760,2 Section 2. 11.0102 (2) (b) of the statutes is amended to read:

AB760,,8 11.0102 (2) (b) A conduit or committee that is subject to par. (a) shall pay the fee specified in par. (a) together with the report filed by that conduit or committee on the 15th day of the month of January in each year. If a conduit or committee that is subject to par. (a) registers under this chapter or changes status so that par. (a) becomes applicable to the conduit or committee during a calendar year, the conduit or committee shall pay the fee for that year with the filing of the conduit’s or committee’s registration statement or at any time before the change in status becomes effective.

AB760,3 Section 3. 11.0102 (2) (e) of the statutes is created to read:

AB760,,10 11.0102 (2) (e) Paragraph (a) does not apply to a conduit for any year during which the conduit does not release contributions totaling more than $2,500.

AB760,4 Section 4. 11.0202 (2) (d) of the statutes is renumbered 11.0202 (2) (d) 1. and amended to read:

AB760,,12 11.0202 (2) (d) 1. An individual who holds a state or local elective office and who becomes a candidate for a different state or local elective office may establish a second candidate committee under this subchapter for the purpose of pursuing a that different state or local office.

AB760,5 Section 5. 11.0202 (2) (d) 2. of the statutes is created to read:

AB760,,14 11.0202 (2) (d) 2. If the individual described under subd. 1. wins the election for which the individual created the second candidate committee, and the individual is not eligible to continue to hold the first office, the individual shall terminate the first candidate committee as provided under s. 11.0105 no later than 180 days after the date the individual is sworn into the office for which the second candidate committee was created. Residual funds of the first committee may be transferred as provided in s. 11.1114 or used or disposed of in any manner allowed by law.

AB760,6 Section 6. 11.0202 (2) (d) 3. of the statutes is created to read:

AB760,,16 11.0202 (2) (d) 3. If the individual described under subd. 1. wins the election for which the individual created the second candidate committee, but the individual is still eligible to hold the first office, the individual shall maintain a committee for each office until such time as the individual resigns from, or a successor is sworn in to, the office. If the individual subsequently resigns from either office, or a successor is sworn into either office, the individual shall terminate the candidate committee for which the individual no longer holds office as provided under s. 11.0105 no later than 180 days after the date the individual resigns or a successor is sworn in. Residual funds of the terminated committee may be transferred as provided in s. 11.1114 or used or disposed of in any manner allowed by law.

AB760,7 Section 7. 11.0202 (2) (d) 4. of the statutes is created to read:

AB760,,18 11.0202 (2) (d) 4. If the individual described under subd. 1. loses the election for which the individual created the second candidate committee, the individual shall terminate the second candidate committee as provided in s. 11.0105 no later than 180 days after the date the winner of that election takes office. Residual funds of the second committee may be transferred as provided in s. 11.1114 or used or disposed of in any manner allowed by law.

AB760,8 Section 8. 11.0203 (1) (bd) of the statutes is created to read:

AB760,,20 11.0203 (1) (bd) The email address and personal telephone number of the candidate, the candidate committee treasurer, and any other custodian of books and accounts. Telephone numbers provided under this paragraph shall be kept confidential and are not subject to the right of inspection and copying under s. 19.35 (1).

AB760,9 Section 9. 11.0303 (1) (bd) of the statutes is created to read:

AB760,,22 11.0303 (1) (bd) The email address and personal telephone number of the treasurer and any other custodian of books and accounts. Telephone numbers provided under this paragraph shall be kept confidential and are not subject to the right of inspection and copying under s. 19.35 (1).

AB760,10 Section 10. 11.0403 (1) (bd) of the statutes is created to read:

AB760,,24 11.0403 (1) (bd) The email address and personal telephone number of the treasurer and any other custodian of books and accounts. Telephone numbers provided under this paragraph shall be kept confidential and are not subject to the right of inspection and copying under s. 19.35 (1).

AB760,11 Section 11. 11.0503 (1) (bd) of the statutes is created to read:

AB760,,26 11.0503 (1) (bd) The email address and personal telephone number of the treasurer and any other custodian of books and accounts. Telephone numbers provided under this paragraph shall be kept confidential and are not subject to the right of inspection and copying under s. 19.35 (1).

AB760,12 Section 12. 11.0505 (1) (a) 1. of the statutes is amended to read:

AB760,,28 11.0505 (1) (a) 1. For express advocacy that will occur during the period beginning 60 days prior to the spring primary and ending on the date of the spring election, a political action committee spending $2,500 or more in the aggregate on express advocacy for one or more candidates at the spring primary or spring election shall submit statements to the commission under par. (b) for express advocacy.

AB760,13 Section 13. 11.0505 (1) (a) 2. (intro.) of the statutes is amended to read:

AB760,,30 11.0505 (1) (a) 2. (intro.) For express advocacy that will occur during the period beginning 60 days prior to the partisan primary and ending on the date of the general election, a political action committee spending $2,500 or more in the aggregate on express advocacy for one or more candidates at the partisan primary or general election shall submit statements to the commission under par. (b) for express advocacy as follows:

AB760,14 Section 14. 11.0505 (1) (a) 3. of the statutes is amended to read:

AB760,,32 11.0505 (1) (a) 3. For express advocacy that will occur during the period beginning 60 days prior to a special primary and ending on the date of the special election, a political action committee spending $2,500 or more in the aggregate on express advocacy for one or more candidates at the special primary or special election shall submit statements to the commission under par. (b) for express advocacy.

AB760,15 Section 15. 11.0505 (1) (b) 1. of the statutes is amended to read:

AB760,,34 11.0505 (1) (b) 1. The dates on which the committee incurred the obligations or made the disbursements.

AB760,16 Section 16. 11.0505 (1) (b) 2. of the statutes is amended to read: