HB3071 104TH GENERAL ASSEMBLY

LRB104 09606 SPS 19671 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3071

Introduced 2/6/2025, by Rep. Amy Briel

SYNOPSIS AS INTRODUCED:

10 ILCS 5/9-1.16 new
10 ILCS 5/9-1.17 new
10 ILCS 5/9-1.18 new
10 ILCS 5/9-1.19 new
10 ILCS 5/9-8.7 new
10 ILCS 5/9-28.5

Amends the Election Code. Provides that a foreign-influenced business entity shall not make a contribution or donation to any person or entity with the express or implied condition that the contribution or donation, or any part of the contribution or donation be used for specified political purposes. Sets forth certification requirements. Provides that the provision shall be construed to establish liability on the part of any candidate, political committee, or other recipient of certification. Provides for enforcement of the provision. Defines terms. Effective July 1, 2025.

A BILL FOR

AN ACT concerning elections.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Election Code is amended by changing Section 9-28.5 and by adding Sections 9-1.16, 9-1.17, 9-1.18, 9-1.19, and 9-8.7 as follows:

(10 ILCS 5/9-1.16 new)

Sec. 9-1.16. Chief executive officer. "Chief executive officer" means the highest-ranking officer or individual having authority to make decisions regarding a business entity's affairs.

(10 ILCS 5/9-1.17 new)

Sec. 9-1.17. Foreign national. "Foreign national" means any of the following:

(1) an individual who is not a citizen of the United States and is not lawfully admitted for permanent residence;

(2) a government, or subdivision, of a foreign country;

(3) a foreign political party; or

(4) any entity, such as a partnership, association, corporation, organization, or other combination of persons, that is organized under the laws of or has its principal place of business in a foreign country.

(10 ILCS 5/9-1.18 new)

Sec. 9-1.18. Foreign-influenced business entity. "Foreign-influenced business entity" means a business entity, as defined in Section 50-37 of the Illinois Procurement Code, for which at least one of the following conditions is met:

(1) a single foreign investor holds, owns, controls, or otherwise has direct or indirect beneficial ownership of 1% or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the corporation or limited liability company;

(2) 2 or more foreign investors, in aggregate, hold, own, control, or otherwise have direct or indirect beneficial ownership of 5% or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the corporation or limited liability company; or

(3) a foreign investor participates directly or indirectly in the corporation or limited liability company's decision-making process with respect to the corporation or limited liability company's political activities in the United States.

For the purposes of this Section, the calculation of a person or entity's ownership interest shall not include any portion of the person or entity's direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or otherwise applicable ownership interests of a corporation that are held or owned in a mutual fund based in the United States.

(10 ILCS 5/9-1.19 new)

Sec. 9-1.19. Foreign investor. "Foreign investor" means a person that:

(1) holds, owns, controls, or otherwise has direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or other applicable ownership interests of a corporation or limited liability company; and

(2) is any of the following:

(A) a government of a foreign country;

(B) a foreign political party;

(C) a partnership, association, corporation, limited liability company, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country;

(D) an individual outside the United States who is not a citizen of the United States and who is not lawfully admitted for permanent residence; or

(E) a corporation or limited liability company in which a person or entity described in paragraphs (A) through (D) holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of equity or voting shares in an amount that is equal to or greater than 50% of the total equity or outstanding voting shares.

(10 ILCS 5/9-8.7 new)

Sec. 9-8.7. Prohibition of contributions and expenditures by foreign-influenced business entities.

(a) A foreign-influenced business entity shall not make a contribution or donation to any person or entity with the express or implied condition that the contribution or donation, or any part of the contribution or donation, be used for the following:

(1) an expenditure, or an offer or agree to make an expenditure, including an independent expenditure;

(2) a contribution, or an offer or agree to make a contribution to any candidate or political committee;

(3) electioneering communications, or an offer or agree to make electioneering communications; or

(4) a contribution or expenditure to support or oppose a ballot initiative or to qualify a question for placement on a ballot.

(b) No later than 7 days after a for-profit business entity makes a contribution or expenditure, including an independent expenditure, the entity shall:

(1) submit a certification to the State Board of Elections that it was not a foreign-influenced business entity on the date that the contribution or expenditure was made, signed by the corporation's chief executive officer, under penalty of perjury, after reasonable inquiry; and

(2) provide a copy of the certification to the candidate, political committee, or person receiving the contribution.

(c) For purposes of certification under this Section, the business entity shall ascertain beneficial ownership in a manner consistent with the Business Corporation Act of 1983 or, if it is registered on a national securities exchange, as set forth in 17 CFR 240.13d-3 and 240.13d-5.

(d) If a foreign-influenced business entity makes a contribution or expenditure in violation of this Section, the State Board of Election shall assess a civil penalty equal to the amount of the contribution or expenditure.

(e) Nothing in this Section shall be construed to establish liability on the part of any candidate, political committee, or other recipient of a certification. A candidate or political committee may rely in good faith on a certification of compliance.

(10 ILCS 5/9-28.5)

Sec. 9-28.5. Injunctive relief for electioneering communications.

(a) Whenever the Attorney General, or a State's Attorney with jurisdiction over any portion of the relevant electorate, believes that any person, as defined in Section 9-1.6, is making, producing, publishing, republishing, or broadcasting an electioneering communication paid for by any person, as defined in Section 9-1.6, who has not first complied with the registration and disclosure requirements of this Article, he or she may bring an action in the name of the People of the State of Illinois or, in the case of a State's Attorney, the People of the County, against such person or persons to restrain by preliminary or permanent injunction the making, producing, publishing, republishing, or broadcasting of such electioneering communication until the registration and disclosure requirements have been met.

(b) Any political committee that believes any person, as defined in Section 9-1.6, is making, producing, publishing, republishing, or broadcasting an electioneering communication paid for by any person, as defined in Section 9-1.6, who has not first complied with the registration and disclosure requirements of this Article may bring an action in the circuit court against such person or persons to restrain by preliminary or permanent injunction the making, producing, publishing, republishing, or broadcasting of such electioneering communication until the registration and disclosure requirements have been met.

(c) Whenever the Attorney General, or a State's Attorney with jurisdiction over any portion of the relevant electorate, believes that any person, as defined in Section 9-1.6, is engaging in independent expenditures, as defined in this Article, who has not first complied with the registration and disclosure requirements of this Article, he or she may bring an action in the name of the People of the State of Illinois or, in the case of a State's Attorney, the People of the County, against such person or persons to restrain by preliminary or permanent injunction the making of such expenditures until the registration and disclosure requirements have been met.

(d) Any political committee that believes any person, as defined in Section 9-1.6, is engaging in independent expenditures, as defined in this Article, who has not first complied with the registration and disclosure requirements of this Article may bring an action in the circuit court against such person or persons to restrain by preliminary or permanent injunction the making of independent expenditures until the registration and disclosure requirements have been met.

(e) If the Attorney General, or a State's Attorney with jurisdiction, believes that a foreign-influenced business entity is making contributions or expenditures, including independent expenditures, or engaging in electioneering communications, the Attorney General or State's Attorney may bring an action in circuit court against the person to restrain by preliminary or permanent injunction the making of the contributions or expenditures.

(f) Any person or political committee that believes any foreign-influenced business entity is making contributions or expenditures, including independent expenditures, or engaging in electioneering communications, may bring an action in circuit court against the person or persons to restrain by preliminary or permanent injunction the making of the contributions or expenditures.

(Source: P.A. 96-832, eff. 7-1-10; 97-766, eff. 7-6-12.)

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect July 1, 2025.