2010 Wisconsin Code
Chapter 11. Campaign financing.
11.38 Contributions and disbursements by corporations and cooperatives.

11.38

11.38 Contributions and disbursements by corporations and cooperatives.

11.38(1)

(1)

11.38(1)(a)

(a)

11.38(1)(a)1.

1. No foreign or domestic corporation, or association organized under ch. 185 or 193, may make any contribution or disbursement, directly or indirectly, either independently or through any political party, committee, group, candidate or individual for any purpose other than to promote or defeat a referendum.

11.38(1)(a)2.

2. Notwithstanding subd. 1., any such corporation or association may establish and administer a separate segregated fund and solicit contributions from individuals to the fund to be utilized by such corporation or association, for the purpose of supporting or opposing any candidate for state or local office but the corporation or association may not make any contribution to the fund. The fund shall appoint a treasurer and shall register as a political committee under s. 11.05. A parent corporation or association engaging solely in this activity is not subject to registration under s. 11.05, but shall register and file special reports on forms prescribed by the board disclosing its administrative and solicitation expenses on behalf of such fund. A corporation not domiciled in this state need report only its expenses for administration and solicitation of contributions in this state together with a statement indicating where information concerning other administration and solicitation expenses of its fund may be obtained. The reports shall be filed with the filing officer for the fund specified in s. 11.02 in the manner in which continuing reports are filed under s. 11.20 (4) and (8).

11.38(1)(a)3.

3. No corporation or association specified in subd. 1. may expend more than a combined total of $500 annually for solicitation of contributions to a fund established under subd. 2. or to a conduit.

11.38(1)(b)

(b) No political party, committee, group, candidate or individual may accept any contribution or disbursement made to or on behalf of such individual or entity which is prohibited by this section.

11.38(2)

(2)

11.38(2)(a)

(a) This section does not affect the right of any individual to support candidates and purposes of the individual's own choosing or the individual's right to subscribe to a regularly published organization newspaper.

11.38(2)(b)

(b) This section does not prohibit the publication of periodicals by a corporation, a cooperative, or an unincorporated cooperative association in the regular course of its affairs which advise the members, shareholders or subscribers of the disadvantages or advantages to their interests of the election to office of persons espousing certain measures, without reporting such activity.

11.38(2)(c)

(c) This section does not apply to any labor organization which is incorporated under ch. 181 prior to January 1, 1978.

11.38(3)

(3) A violation of this section by an officer or employee of a corporation is prima facie evidence of a violation by the corporation.

11.38(4)

(4) Any corporation which violates this section shall forfeit double the amount of any penalty assessed under s. 11.60 (3).

11.38(6)

(6) Any individual or campaign treasurer who receives funds in violation of this section shall promptly return such funds to the contributor or donate the funds to the common school fund or a charitable organization, at the treasurer's option.

11.38(7)

(7) This section may not be construed to authorize any national bank or any corporation organized by authority of any law of congress to make a contribution or expenditure as defined by federal law in connection with any election to state or local office which is prohibited by federal law.

11.38(8)

(8)

11.38(8)(a)

(a) A corporation or association organized under ch. 185 or 193 which accepts contributions or makes disbursements for the purpose of influencing the outcome of a referendum is a political group and shall comply with s. 11.23 and other applicable provisions of this chapter.

11.38(8)(b)

(b) Except as authorized in s. 11.05 (12) (b) and (13), prior to making any disbursement exceeding the amount specified under s. 11.23 (1) on behalf of a political group which is promoting or opposing a particular vote at a referendum and prior to accepting any contribution or making any disbursement exceeding that amount to promote or oppose a particular vote at a referendum, a corporation or association organized under ch. 185 or 193 that becomes subject to a registration requirement under s. 11.23 (1) shall register with the appropriate filing officer specified in s. 11.02 and appoint a treasurer. The registration form of the corporation or association under s. 11.05 shall designate an account separate from all other corporation or association accounts as a campaign depository account, through which all moneys received or expended for the adoption or rejection of the referendum shall pass. The corporation or association shall file periodic reports under s. 11.20 providing the information required under s. 11.06 (1).

11.38(8)(c)

(c) Expenditures by a corporation or association to establish and administer a campaign depository account of a political group need not be made through the depository account and need not be reported.

11.38 - ANNOT.

History: 1973 c. 334; 1975 c. 93; 1977 c. 427; 1979 c. 328; 1985 a. 303 ss. 71, 72, 86; 1987 a. 370; 1991 a. 316; 2001 a. 109; 2005 a. 177, 441; 2007 a. 1; 2009 a. 313.

11.38 - ANNOT.

Cross Reference: See also s. GAB 6.04, Wis. adm. code.

11.38 - ANNOT.

An individual illegally furnishing funds from a corporate account may be convicted under s. 11.24 (1). State v. Dreske, 88 Wis. 2d 60, 276 N.W.2d 324 (Ct. App. 1979).

11.38 - ANNOT.

This section's prohibition against corporate political contributions and disbursements is broad and probably would bar, in most cases, purchases of advertising by a corporation in a political party publication. 65 Atty. Gen. 10.

11.38 - ANNOT.

The government may regulate corporate political speech through disclaimer and disclosure requirements, but it may not suppress that speech altogether. Federal law prohibiting corporations and unions from using their general treasury funds to make independent expenditures for speech defined as an "electioneering communication" or for speech expressly advocating the election or defeat of a candidate is unconstitutional. Citizens United v. Federal Election Commission, 558 U.S. ___, 130 S. Ct. 876, 175 L. Ed. 2d 753 (2010).