Wisconsin SB 511: Relating to: political expenditures by corporations and cooperative associations.

Bill Text

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2021 - 2022 LEGISLATURE
2021 SENATE BILL 511
August 11, 2021 - Introduced by Senators WIRCH, AGARD, CARPENTER, LARSON, ROYS,
SMITH and L. TAYLOR, cosponsored by Representatives OHNSTAD, BALDEH,
NEUBAUER, SHANKLAND, SINICKI and VRUWINK. Referred to Committee on
Elections, Election Process Reform and Ethics.
AN ACT to repeal and recreate 11.1112 of the statutes; relating to: political
expenditures by corporations and cooperative associations.
Analysis by the Legislative Reference Bureau
This bill prohibits corporations and cooperative associations from making any
contribution or expenditure, or incurring any obligation to make a contribution or
expenditure, for the purpose of influencing an election for state or local office. The
bill does, however, allow a corporation or cooperative association to make
expenditures or incur obligations for such a purpose under certain circumstances.
Current law prohibits corporations, cooperative associations, labor
organizations, and American Indian tribes from making contributions to any
candidate committee, legislative campaign committee, political action committee,
political party, or recall committee. Such entities may, however, make contributions
to independent expenditure committees and referendum committees. The entities
may also make contributions to a segregated fund established by a political party or
legislative campaign committee to use for purposes other than making contributions
to a candidate committee or making disbursements for express advocacy. In
addition, consistent with U.S. Supreme Court cases, these entities may make
independent expenditures for political purposes. See Citizens United v. Fed. Election
Comm'n, 130 S. Ct. 876 (2010).
Under the bill, if a court with jurisdiction in this state finds that a law
prohibiting corporations and cooperative associations from making expenditures
and incurring obligations to influence an election for state or local office is not
enforceable for constitutional reasons, the Ethics Commission must publish a
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finding to that effect. The bill then provides that, during a period when a finding of
unenforceability is in effect, before a corporation or cooperative association may
make an expenditure or incur an obligation for the purpose of influencing an election
for state or local office, the corporation or association must register as a political
action committee and file with its registration statement a document that indicates
that the corporation or association received the approval of a majority of its voting
shareholders to make expenditures or incur obligations or a document that indicates
that the corporation or association has no shareholders.
The bill also provides that no owner, officer, employee, or agent of a corporation
or cooperative association may cause or authorize the corporation or association to
make an expenditure or incur an obligation prohibited under the bill. If an owner,
officer, employee, or agent causes or authorizes such a violation, an action for the
violation must be brought against the owner, officer, employee, or agent personally,
and the corporation or association is not financially liable for the violation. In
addition, no corporation or cooperative association is permitted to reimburse an
owner, officer, employee, or agent for any financial liability incurred by the owner,
officer, employee, or agent.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 11.1112 of the statutes is repealed and recreated to read:
11.1112 Contributions and expenditures by corporations and
cooperative associations. (1) Except as provided in sub. (3), no foreign or
domestic corporation and no association organized under ch. 185 or 193 may make
any contribution, disbursement, or expenditure or incur any obligation, directly or
indirectly, either independently or through any committee, candidate, or individual
for the purpose of influencing an election for state or local office.
(2) (a) As a part of its registration as a political action committee under subch.
V, each corporation and association that wishes to make disbursements or
expenditures, or to incur obligations, for the purpose of influencing an election for
state or local office during a period when a finding of unenforceability under sub. (3)
is in effect shall provide a copy of a document that is satisfactory to the commission,
reflecting actions taken not more than 2 years previous to the time that any such
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disbursement or expenditure is made or any such obligation is incurred,
demonstrating that the corporation or association has received the approval of a
majority of the voting shares, exclusive of any proxy votes cast, for the corporation
or association to make such disbursements or expenditures or incur