New Proposal Would Ban Foreign Nationals From Spending Money on State and Local Referendums in Wisconsin

Wednesday, January 10th, 2024 -- 9:01 AM

(Rich Kremer, Wisconsin Public Radio) Foreign nationals would be banned from spending money on state and local referendums in Wisconsin under a bill introduced by Democratic state lawmakers.

According to Rich Kremer with Wisconsin Public Radio, supporters say it's aimed at closing a loophole created by a federal ruling that foreign donors can finance U.S. referendum campaigns.

In 2021, the Federal Election Commission ruled that referendum ballot initiatives are not considered elections under existing federal law. The decision came after a complaint was filed in Montana alleging a Canadian subsidiary of an Australian mining company illegally financed an effort to block new mining restrictions.

A memo seeking support for the Wisconsin bill, authored by Rep. Melissa Ratcliff, D-Cottage Grove, Sen. Chris Larson, D-Milwaukee and Sen. Mark Sprietzer, D-Beloit, says that ruling exposed a "glaring loophole," which their legislation seeks to address.

During a hearing before the Assembly Committee on Campaigns and Elections, Ratcliff said while she isn't aware of any examples of foreign donations going toward Wisconsin referendum campaigns, lawmakers should be proactive.

She said a foreign-owned company with a location in Wisconsin, for example, could finance an effort to block a local school referendum to avoid paying higher property taxes.  

"So, depending on what certain foreign entities have to gain, they could contribute to one side or another in order to skew the results that would benefit them," Ratcliff said. In addition to local property tax referendums, Ratcliff said that under current law, foreign individuals could also make donations to committees formed in support or opposition of proposed constitutional amendments in Wisconsin.

With Republicans controlling the Legislature and Democrat Tony Evers holding the governor's office, constitutional amendments have been increasingly used by GOP lawmakers to get around a potential veto.

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