CAMPAIGN
FINANCE
Political Action
Committee
(PAC)
Manual
October 2010
Wisconsin Government
Accountability Board
212 E. Washington Ave, 3rd Floor
P.O. Box 7984
Madison, WI 53707-7984
Phone: 608-266-8005
Fax: 608-267-0500
E-mail: gabcfis@wi.gov
Website: http://gab.wi.gov
Table of Contents
Introduction ..................................................................................................... 1
Registration ..................................................................................................... 1
State PACs ................................................................................................................................. 1
Local PACs ................................................................................................................................. 2
Non-resident PACs ....................................................................................................................... 2
Registration Requirements ........................................................................................................... 2
Amending a Registration ............................................................................................................. 3
Exemption from Filing Reports .................................................................................................... 3
Major Provisions of Wisconsin Campaign Finance Law .................................. 4
Contribution Limits ...................................................................................................................... 4
Prohibited Contributions .............................................................................................................. 5
In-Kind Contributions .................................................................................................................. 5
Political Advertising Disclaimer ................................................................................................... 6
Reporting ......................................................................................................6
Non-resident PACs .......................................................................................................................6
State PACs ...................................................................................................................................6
Local PACs ..................................................................................................................................7
Reports Filed ................................................................................................................................7
Filing Deadlines ............................................................................................................................7
PACs Making Independent Expenditures ................................................ …...8
Registration ................................................................................................................................. 8
Reporting ..................................................................................................................................... 8
24 Hour Reporting ....................................................................................................................... 8
Disclaimer.......................................................................................................................................................... 8
Filing Fee ................................................................................................ …...9
Termination ............................................................................................ …...9
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-INTRODUCTION
In 1974, the Wisconsin legislature enacted one of the nation's first comprehensive
campaign finance laws. Recognizing that the democratic system depends on an
informed electorate, the law requires all organized participants in the election process
to register and report all financial activity in connection with their efforts. These
records are available for public inspection. In addition, the law establishes limits on
contributions to campaigns.
A political action committee (PAC) is any political committee consisting of at least two
individuals, other than a candidate committee or a political party committee, which
receives contributions, makes disbursements, or incurs obligations for the purpose of
influencing the election or defeat of candidates to state or local office. PACs are often
sponsored by corporations, labor unions, or trade associations. However, any
organization of two or more individuals may form a political action committee. These
organizations are subject to Wisconsin's campaign finance law.
The Wisconsin Government Accountability Board has developed this guide to assist
PACs in understanding the law, meeting the registration and financial reporting
requirements, and complying with contribution limits and prohibitions. If after reading
through these materials you have questions or need additional information, contact the
Government Accountability Board at 608-266-8005.
-REGISTRATION
Every organization active in affecting the nomination, election or defeat of a clearly
identified state or local candidate must register. All PACs making contributions to state
or local candidates or committees are required to register in Wisconsin prior to making
any contributions to Wisconsin candidates or political committees. All PACs are
required to register if they receive or disburse $25 or more for political purposes. The
GAB-1 must be filed before receiving or making contributions or disbursements in
excess of $25.
STATE PACs
An organization registers by completing a Campaign Registration Statement (GAB-1)
and filing that statement with the proper filing officer. Committees required to register with
the Government Accountability Board should go to the Campaign Finance Information
System website (http://cfis.wi.gov) and select ‘Register a Special Interest Committee’ to
complete the registration form on-line. When completed, you must print the form and send
a signed copy to the Government Accountability Board to activate your registration.
The following committees are required to register with the Government
Accountability Board:
PACs contributing to candidates for state offices:
o Governor, Lt. Governor, Attorney General, Secretary of State, State
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Treasurer,
o State Senate,
o State Assembly,
o District Attorney,
o Superintendent of Public Instruction,
o Justice of Supreme Court,
o Court of Appeals,
o Circuit Court judge) or
a PAC giving money to another committee which is registered with the
Government Accountability Board.
LOCAL PACs
Local committees may register by printing a blank GAB-1 form, filling in the required
information and filing the form with the appropriate local county, municipal or school
district clerk. A PAC which is supporting candidates for local office are required to
register with the appropriate local filing officer:
County Clerk -county elections (County Executive, County Clerk, Sheriff,
Coroner, or County Board)
Milwaukee County Board of Election Commissioners- Milwaukee County
offices
Town, City, or Village Clerk - mayor, alderperson, municipal board
member.
Milwaukee City Board of Election Commissioners – City of Milwaukee
offices
School District Clerk – school board elections
NON-RESIDENT PACs
Non-resident means a registrant who does not maintain an office or address in Wisconsin.
Non-resident political action committees are required to register with the Government
Accountability Board if they make contributions to Wisconsin candidates or committees, or
disburse funds for elections in Wisconsin. As part of its registration, a non-resident PAC
identifies the names and addresses of officers or agencies which receive copies of its full
campaign finance report.
WISCONSIN AGENT
– While non-resident PACs do not have to maintain a bank
account in Wisconsin, they are required to file the name and address of a designated
agent within the state. This information should be sent to:
Secretary of State,
30 W. Mifflin St, 9th and 10th Floor,
Madison, WI 53702.
REGISTRATION REQUIREMENTS
TREASURER - All committees are required to have an active treasurer. No funds may
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be received or disbursed while there is a vacancy in the office of committee treasurer.
SEPARATE CAMPAIGN ACCOUNT
- Every committee must have a separate
segregated depository account. This account may only be used to deposit
contributions and make expenditures for political purposes. All funds in this account
are restricted and may only be used for a political purpose.
In addition to the campaign depository account, committees may open investment
accounts allowed under section 11.25(3) Wis. stats. All contributions must be
deposited into the campaign depository account first, and may then be transferred to
any investment account(s). When making disbursements, the funds must first be
transferred from the investment account into the campaign depository account and then
disbursed to the vendor or desired committees. No expenditures are allowed to be
made directly from the investment account to a vendor.
G.A.B. ID NUMBER - Committees registering with the Government Accountability
Board are assigned a G.A.B. ID #. This ID#, along with the full committee name (as
entered on the GAB-1) must appear on all committee checks.
AMENDING the PAC’s REGISTRATION
If there are any changes to the committee’s information that was filed on the original
GAB-1, the treasurer must complete and file an amended GAB-1 within 10 days of the
change. Committees registered with the Government Accountability Board are
assigned a username (GAB ID#) and password that should be used to login to the
Campaign Finance Information System to update the committee information on-line..
Local committees may get a blank form from their filing officer or from the
Government Accountability Board website (http://gab.wi.gov).
EXEMPTION FROM FILING REPORTS
PACs meeting all of the following criteria may claim an exemption from filing
campaign finance reports. PACs claiming exemption:
1. may not accept contributions or make disbursements (including incurred
obligations) of more than $1,000 total in a calendar year; AND
2. may not accept contribution(s) from a single source in excess of $100 in
aggregate in any calendar year; AND
3. must request the exemption when completing or updating the committee
registration (GAB-1).
All PACs are required to keep accurate records of receipts and disbursements. A
committee claiming the exemption may need this information to file finance reports,
should they exceed either of the exemption limits ($1,000 total, $100 single source).
If a PAC wishes to go off exemption, or if the contribution or disbursement limits are
exceeded, the committee is required to contact its filing officer and amend its
registration statement immediately. The PAC is then required to file finance reports,
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starting with the next required report. The first report of the year must cover all
activity from January 1 of that calendar year through the last day of activity for the
report being filed.
-MAJOR PROVISIONS OF CAMPAIGN FINANCE LAW
Campaign finance regulations are found in Chapter 11, Wisconsin Statutes. The
Government Accountability Board has prepared manuals similar to this PAC manual
and guidelines containing instructions for candidates and committees on how to
comply with campaign finance regulations. Included below is a summary of some of
the major provisions of campaign finance law. A copy of Chapter 11, Wisconsin
Statutes, as well as other campaign finance rules, guidelines and reporting advice can
be found on the agency’s website at http://gab.wi.gov.
CONTRIBUTION LIMITS
Wisconsin campaign finance law imposes limits on the amount a single PAC may
contribute to a candidate for a particular office. A list of the maximum contribution
amounts a PAC may make to a candidate seeking a particular office are provided in the
table below.
Office
Single Committee
Contribution Limit
Governor $43,128
Lt. Governor 12,939
Attorney General 21,564
State Treasurer 8,625
Secretary of State 8,625
Superintendent of Public Instruction 8,625
Supreme Court 8,625
Court of Appeals I 3,000
Court of Appeals II, III, IV 2,500
District Attorney & Circuit Court for
Dane, Milwaukee, & Waukesha Counties 3,000
All Other District Attorneys & Circuits 1,000
State Senate 1,000
State Assembly 500
To obtain PAC contribution limits for county and local candidates, contact the
appropriate filing office.
p. 5
PROHIBITED CONTRIBUTIONS
Certain contributions are prohibited by Wisconsin law. A committee may not make
nor accept the following types of contributions:
1. Anonymous contributions of more than $10
2. Contributions in cash of more than $50
3. Contributions given in the name of someone other than the contributor
(these are laundered contributions)
4. Contributions from cooperatives or corporations.
5. Contributions in excess of the limits set by State law.
IN-KIND CONTRIBUTIONS
An in-kind contribution is any good, service, or property offered to a political
committee or candidate free or at a reduced cost from the fair market value of the
good, service or property. A PAC may both receive and make an in-kind contribution.
Examples of in-kind contributions are:
1. If a person purchases stamps that are used for a mailing and is not reimbursed
for the cost of the stamps, the value of those stamps is an in-kind contribution
to the committee from that individual.
2. If an individual is paid to work on behalf of a candidate by a political
committee, the payment for those services is an in-kind contribution to the
candidate.
3. If a committee offers to provide food and beverages for a fundraiser and
receives less than the ordinary market price, the difference between the
ordinary market price and the cost to the candidate committee is an in-kind
contribution from the donor committee.
A candidate must agree to accept an in-kind contribution before it is given. When the
contribution is given by a political committee, the committee provides a written
description of the contribution, its actual value, and the date the contribution will be
given to the candidate.
An in-kind contribution received by a committee is reported as both a contribution and
an expenditure. This procedure allows the committee to disclose the receipt of the
contribution on its campaign finance report along with cash contributions received.
Then, in order to keep the committee's cash balance accurate, the in-kind amount is
reported as an expenditure. The two entries offset each other and, consequently, do not
affect the cash balance. It also more accurately reflects the political effort expended
by a committee.
In-kind contributions are subject to the same itemization thresholds as cash
contributions. Cash contributions and in-kind contributions from a single contributor
are added together for the purposes of determining the year-to-date amount for a
specific contributor. When an in-kind contribution is used to pay for political
communications, the communications must bear the disclaimer for the recipient
committee.
POLITICAL ADVERTISING DISCLAIMER
All communications paid for with committee funds must contain an attribution
statement or disclaimer. It is the responsibility of the registrant reporting the
expenditure to include the disclaimer. The usual form includes the name of the
registrant and the name of an officer of the committee. An example of a disclaimer is
“Paid for by XYZ Political Action Committee, John Doe, Treasurer.”
-REPORTING
All active committees must file periodic campaign finance reports until the
committee’s registration is terminated or the committee is granted exemption from
filing campaign finance reports (see the Exemption from Filing section below for more
information on when a committee may be exempt from filing reports). All PACs
required to file a campaign finance report will complete the report on the GAB-2S,
GAB-2L or GAB-2a form prescribed by the Board.
NON-RESIDENT PACs
Non-resident PACs are required to file campaign finance reports on forms prescribed
by the Wisconsin Government Accountability Board. Filing a copy of the PAC’s
Federal Elections Commission report does not fulfill its Wisconsin filing obligation.
However, a non-resident PAC is required to report only its Wisconsin receipts and
Wisconsin expenditures. The electronic filing and other reporting requirements that
apply to resident PACs apply to non-resident PACs as well.
STATE PACs
Active PACs registered with the Government Accountability Board not on exempt
status are required to file campaign finance reports at least twice each year (January
and July). A PAC with less than $20,000 of contributions in a biennium may file its
reports using the paper form (GAB-2S), providing it has not filed reports electronically
in the past.
PACs with $20,000 or more of receipts in a biennium, or who have filed electronically
in the past must file electronically using CFIS and should refer to the appropriate
manual on filing electronic reports. PACs have multiple options on how to file
electronically:
data entry directly into CFIS (enter receipts, enter expenses),
upload transactions into CFIS (upload receipts, upload expenses), or
complete GAB-2S Excel spreadsheet and email the completed report to
gabcfis@wi.gov.
p. 7
There is a separate “How To” manual on each method of filing a campaign finance
report. All committees, including those filing electronically, are required to file a
printed copy of their finance reports by the filing deadline.
LOCAL PACs
Committees registered with the local filing officer should complete the form GAB-2L.
There are instructions on the back of each schedule on how to report items. Completed
finance reports should be filed with your local filing officer. Local committees do not
file their reports in the Campaign Finance Information System unless they are also
registered with the state and required to file reports with the state based upon the
committee’s registration status and campaign finance activity.
REPORTS FILED
All active, non-exempt PACs must file twice each year, in January and July. These are
called the January Continuing and July Continuing reports. In addition, a PAC may be
required to file a Spring Pre-Primary or Spring Pre-Election report if it makes
contributions or other disbursements on behalf of a candidate running in the Spring
election. Similarly, a PAC may is required to file a Fall Pre-Primary or Fall Pre-
Election report if it makes contributions or other disbursements on behalf of a
candidate running in the Fall election.
A PAC registered with the Government Accountability Board that is also active in
local elections must file a duplicate copy of its report with the county clerk of the
county in which the committee participates in local elections.
In addition to the full finance reports, committees may be required to file ‘Special
Reports of Late Contributions’ (GAB-3). This form is required if the committee is
required to file the Pre-Primary or Pre-Election report, and receives a contribution of
$500 or more, in aggregate, from a single contributor during the 14 day period before
the Primary or Election. This ‘Late Contribution’ must be reported within 24 hours of
receipt, and is included in the next full finance report.
FILING DEADLINES
A list of the regularly scheduled elections and the related finance report deadlines can
be found on the Government Accountability Board website, http://gab.wi.gov. The
July Continuing reports are due on January 31 and the January Continuing reports are
due on July 20. Election related reports are due 8 days before the election and cover
all activity through 15 days before the election.
The filing officer is required to send notice of the filing requirements prior to the filing
deadline; however, failure to receive a notice does not mean the committee is not
required to file the report.
p. 8
-PACs MAKING INDEPENDENT DISBURSEMENTS
DISBURSEMENTS REGISTRATION
If a PAC makes disbursements of more than $25 to advocate the election or defeat of a
clearly identified candidate without the candidate's knowledge or approval, it must
register as a political committee, if not already registered in Wisconsin. In addition,
the committee must file an Oath for Committees and Individuals Making Independent
Expenditures (GAB-6) which identifies the candidates to be supported or opposed
before any independent expenditures are made. This oath includes a sworn statement
by the treasurer of the committee stating that the committee does not act in cooperation
or consultation with any candidate, agent, or authorized committee of a candidate who
is to be supported or opposed.
The committee must file this oath each calendar year. The oath must be notarized and
list the candidates who will be affected by the committee's independent expenditures
during that year. Additional candidates may be added by filing a second oath and
listing them.
REPORTING
Committees filing an oath relating to independent expenditures must file a report of
those independent expenditures as well as a full Campaign Finance Report (GAB-2).
The Report of Independent Expenditures (GAB-7) includes all expenditures made in
support of or in opposition to candidates. Candidates must be identified along with the
dates, amounts, and specific purpose of each independent expenditure. The filing
officer must include a copy of this report in each affected candidate's file. Also, these
expenditures must be reported on Schedule 2A of the Campaign Finance Report (GAB-
2S). Independent committees are not eligible for exemption from filing reports.
24 HOUR REPORTING
If there is an independent expenditure of more than $20 cumulatively to affect the
election of a candidate during the 15 days after the close of the pre-primary or preelection
report and before the primary or general election, a Special Report of
Independent Expenditures (GAB-7S) must be filed within 24 hours of making the
expenditure. The information must also appear in the next regular report of the
committee.
DISCLAIMER
Political advertising by a PAC making independent expenditures must carry a
disclaimer identifying the committee and a statement which makes clear that the
committee is acting independent of the candidate or candidate committee. An example
is:
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"Paid for by the Committee to Promote Professionalism, Peter Smith, Treasurer.
Not authorized by any candidate or candidate's agent or committee."
-FILING FEE
Every PAC registered with the Government Accountability Board whose spending
exceeds a total of $2,500 in any calendar year must pay an annual filing fee of $100.
This provision does not apply to candidates or personal campaign committees. .
Local committees are not required to pay a filing fee. The payment is made to the
Government Accountability Board and is due in the Government Accountability Board
postmarked no later than January 31st.
If a PAC terminates during a year, and spends more than $2,500 in that year, the
registrant must pay the $100 filing fee with its termination request.
Any PAC required to pay the filing fee who fails to do so within the time prescribed
will be referred to the Government Accountability Board for further action. The
statutes provide for a forfeiture of $500 plus three times the filing fee which is $300.
-TERMINATION
All
committees not claiming the exemption from filing finance reports must file
finance reports at least twice a year (January and July Continuing). If a committee
determines that it will no longer be receiving contributions, making disbursements, or
incurring obligations, it may terminate its registration by filing a final ‘Termination’
report. To be eligible for termination, the committee must have a zero cash balance
and no outstanding debt. Committees registered with the Government Accountability
Board must pay the filing fee, if required for that year, before terminating their
committee. Be sure to inform the filing officer that your committee is requesting
termination when filing the committee’s final campaign finance report. Simply filing a
report with a $0 balance does not terminate your committee.
