SB2470 96TH GENERAL ASSEMBLY

LRB096 14876 JAM 29742 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2470

Introduced 10/14/2009, by Sen. Michael Noland

SYNOPSIS AS INTRODUCED:

10 ILCS 5/Art. 9 heading
10 ILCS 5/9-1	from Ch. 46, par. 9-1
10 ILCS 5/9-1.4	from Ch. 46, par. 9-1.4
10 ILCS 5/9-1.5	from Ch. 46, par. 9-1.5
10 ILCS 5/9-1.6	from Ch. 46, par. 9-1.6
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 5/9-1.20 new
10 ILCS 5/9-1.21 new
10 ILCS 5/9-1.22 new
10 ILCS 5/9-1.23 new
10 ILCS 5/9-1.24 new
10 ILCS 5/9-1.25 new
10 ILCS 5/9-2.5 new
10 ILCS 5/9-2.7 new
10 ILCS 5/9-8.5 new
10 ILCS 5/9-8.7 new
10 ILCS 5/9-10	from Ch. 46, par. 9-10
10 ILCS 5/9-14.5 new
10 ILCS 5/9-29 new

Amends the Election Code. Makes changes with respect to the disclosure and regulation of campaign finances, including the imposition of contribution limits.

FISCAL NOTE ACT MAY APPLY

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 the heading of Article 9 and Sections 9-1, 9-1.4, 9-1.5, 9-1.6, and 9-10 and by adding Sections 9-1.16, 9-1.17, 9-1.18, 9-1.19, 9-1.20, 9-1.21, 9-1.22, 9-1.23, 9-1.24, 9-1.25, 9-2.5, 9-2.7, 9-8.5, 9-8.7, 9-14.5, and 9-29 as follows:

(10 ILCS 5/Art. 9 heading)

ARTICLE 9. DISCLOSURE AND REGULATION OF CAMPAIGN

CONTRIBUTIONS AND EXPENDITURES

(10 ILCS 5/9-1) (from Ch. 46, par. 9-1)

Sec. 9-1. As used in this Article, unless the context otherwise requires, the terms defined in Sections 9-1.1 through 9-1.25 9-1.13, have the respective meanings as defined in those Sections.

(Source: P.A. 86-873.)

(10 ILCS 5/9-1.4) (from Ch. 46, par. 9-1.4)

Sec. 9-1.4. Contribution.

(a) "Contribution" means:

(1) any gift, subscription, donation, dues, loan, advance, deposit of money, or anything of value, knowingly received in connection with the nomination for election, election, or retention of any person to or in public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy;

(2) any gift, subscription, donation, dues, loan, advance, deposit of money, or anything of value that constitutes an electioneering communication regardless of whether the communication is made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a candidate's authorized local political committee, a State political committee, a political committee in support of or opposition to a question of public policy, or any of their agents;

(3) the purchase of tickets for fund-raising events, including but not limited to dinners, luncheons, cocktail parties, and rallies made in connection with the nomination for election, election, or retention of any person to or in public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy;

(4) any transfer of funds between political committees;

(5) the services of an employee donated by an employer, in which case the contribution shall be listed in the name of the employer, except that any individual services provided voluntarily and without promise or expectation of compensation from any source shall not be deemed a contribution; and

(6) any expenditure made in cooperation, consultation, or concert with the committee.

(b) "Contribution" does not include:

(1) the use of real or personal property and the cost of invitations, food, and beverages, voluntarily provided by an individual in rendering voluntary personal services on the individual's residential premises for candidate-related activities; provided the value of the service provided does not exceed an aggregate of $150 in a reporting period;

(2) communications on any subject by a corporation to its stockholders and executive or administrative personnel and their families, by a labor organization to its members and their families, or by an association to its members and their families;

(3) voter registration and other get-out-the-vote campaigns that make no mention of any clearly identified candidate, public question, political party or group, or combination thereof;

(4) the establishment, administration, and solicitation of contributions to a separate segregated fund to be used for political purposes by a corporation, labor organization, or association; or

(5) any secured loan of money by a national or State bank or credit union made in accordance with the applicable banking laws and regulations and in the ordinary course of business; however, the use, ownership, or control of any security for such a loan, if provided by a person other than the candidate or his or her committee, qualifies as a contribution.

(c) Interest or other investment income, earnings or proceeds, and refunds or returns of all or part of a committee's previous expenditures shall not be considered contributions for the purposes of Section 9-8.5 but shall be listed with contributions on disclosure reports required by this Article.

"Contribution" means-

(1) a gift, subscription, donation, dues, loan, advance, or deposit of money or anything of value, knowingly received in connection with the nomination for election, or election, of any person to public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy;

(1.5) a gift, subscription, donation, dues, loan, advance, deposit of money, or anything of value that constitutes an electioneering communication regardless of whether the communication is made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a candidate's authorized local political committee, a State political committee, a political committee in support of or opposition to a question of public policy, or any of their agents;

(2) the purchase of tickets for fund-raising events, including but not limited to dinners, luncheons, cocktail parties, and rallies made in connection with the nomination for election, or election, of any person to public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy;

(3) a transfer of funds between political committees; and

(4) the services of an employee donated by an employer, in which case the contribution shall be listed in the name of the employer, except that any individual services provided voluntarily and without promise or expectation of compensation from any source shall not be deemed a contribution; but

(5) does not include--

(a) the use of real or personal property and the cost of invitations, food, and beverages, voluntarily provided by an individual in rendering voluntary personal services on the individual's residential premises for candidate-related activities; provided the value of the service provided does not exceed an aggregate of $150 in a reporting period;

(b) the sale of any food or beverage by a vendor for use in a candidate's campaign at a charge less than the normal comparable charge, if such charge for use in a candidate's campaign is at least equal to the cost of such food or beverage to the vendor.

(Source: P.A. 94-645, eff. 8-22-05.)

(10 ILCS 5/9-1.5) (from Ch. 46, par. 9-1.5)

Sec. 9-1.5. Expenditure defined.

(a) "Expenditure" means:

(1) any payment, distribution, purchase, loan, advance, deposit, gift of money, or anything of value in connection with the nomination for election, election, or retention of any person to or in public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy.

(2) any payment, distribution, purchase, loan, advance, deposit, gift of money, or anything of value that constitutes an electioneering communication, regardless of whether the communication is made in concert or in cooperation with or at the request, suggestion, or knowledge of a candidate, a candidate's authorized local political committee, a State political committee, a political committee in support of or in opposition to a question of public policy, or any of their agents.

(3) a payment, distribution, purchase, loan, advance, deposit, or gift of money or anything of value for any communication aimed at voters that is susceptible of no reasonable interpretation other than as an appeal to vote for or against a specific candidate. A communication is susceptible of no other reasonable interpretation if:

(i) it is made within (A) 60 days before a general election or consolidated election or (B) 30 days before a primary election;

(ii) it includes a reference to or description of a clearly identified candidate; or

(iii) it includes statements that (A) refer to the personal qualities, character, or fitness of that candidate, (B) support or condemn that candidate's position or stance on issues, or (C) support or condemn that candidate's public record.

(4) any transfer of funds between political committees.

(5) a payment for an independent expenditure as defined in Section 9-1.16.

(b) "Expenditure" does not include – the use of real or personal property and the cost of invitations, food, and beverages, voluntarily provided by an individual in rendering voluntary personal services on the individual's residential premises for candidate-related activities; provided the value of the service provided does not exceed an aggregate of $150 in a reporting period.

"Expenditure" means-

(1) a payment, distribution, purchase, loan, advance, deposit, or gift of money or anything of value, in connection with the nomination for election, or election, of any person to public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy.

"Expenditure" also includes a payment, distribution, purchase, loan, advance, deposit, or gift of money or anything of value that constitutes an electioneering communication regardless of whether the communication is made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a candidate's authorized local political committee, a State political committee, a political committee in support of or opposition to a question of public policy, or any of their agents.

However, expenditure does not include - (a) the use of real or personal property and the cost of invitations, food, and beverages, voluntarily provided by an individual in rendering voluntary personal services on the individual's residential premises for candidate-related activities; provided the value of the service provided does not exceed an aggregate of $150 in a reporting period;

(b) the sale of any food or beverage by a vendor for use in a candidate's campaign at a charge less than the normal comparable charge, if such charge for use in a candidate's campaign is at least equal to the cost of such food or beverage to the vendor.

(2) a transfer of funds between political committees.

(Source: P.A. 93-574, eff. 8-21-03; 93-615, eff. 11-19-03; 93-847, eff. 7-30-04.)

(10 ILCS 5/9-1.6) (from Ch. 46, par. 9-1.6)

Sec. 9-1.6. Person; whoever. "Person" or "whoever" means an individual, trust, partnership, committee, association, corporation, or any other organization or group of persons as required by the context; however, "natural person" means one human being.

(Source: P.A. 78-1183.)

(10 ILCS 5/9-1.16 new)

Sec. 9-1.16. Independent expenditure. "Independent expenditure" means an expenditure by a person:

(1) expressly advocating the election or defeat of a clearly identified candidate, and

(2) that is not made in cooperation, consultation, or concert with or at the request or suggestion of the candidate, candidate's authorized political committee or agents, or agents thereof.

For the purpose of this Section, "expressly advocating" includes, but is not limited to, disseminating messages by any means that feature words like "vote for", "vote against", "elect", "support", "cast your ballot for", "Smith for (office)", "defeat", "reject", "retain", or "remove".

(10 ILCS 5/9-1.17 new)

Sec. 9-1.17. Clearly identified or identifiable. "Clearly identified" or "clearly identifiable" means that:

(1) the name, voice, image, or likeness of a candidate appears; or

(2) the identity of the candidate is apparent by unambiguous reference.

(10 ILCS 5/9-1.18 new)

Sec. 9-1.18. Regular election period. "Regular election period" means any of:

(1) the period beginning on January 1 immediately following the date of the general election for the office to which a candidate seeks nomination or election and ending the day of the general primary election for that office;

(2) the period beginning on the day after the general primary election for the office to which the candidate seeks nomination or election and ending on the December 31 after the general election for that office; or

(3) the period beginning on the date on which a sitting judge declares for retention and ending 90 days after the retention election.

(10 ILCS 5/9-1.19 new)

Sec. 9-1.19. Municipal election period. "Municipal election period" means the period beginning on July 1 immediately following the date of the consolidated primary election or consolidated election at which the office for which the candidate seeks nomination or election is filled and ending on June 30 immediately preceding the date of the next consolidated primary election for that office, unless the office is not filled at the consolidated primary election, in which instance candidates who will seek office in the next upcoming consolidated election may begin a new municipal election period the day after the consolidated primary election and ending on the next June 30.

(10 ILCS 5/9-1.20 new)

Sec. 9-1.20. Labor organization. For the purpose of this Article, the term "labor organization" means any organization of any kind or any agency or employee representation committee or plan in which employees participate and that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.

(10 ILCS 5/9-1.21 new)

Sec. 9-1.21. Corporation. For the purpose of this Article, the term "corporation" includes a limited liability company, partnership, professional practice, cooperative, sole proprietorship, or any incorporated entity or corporation, whether organized on a for-profit or non-profit basis.

(10 ILCS 5/9-1.22 new)

Sec. 9-1.22. Association. For the purpose of this Article, the term "association" means any group, club, collective, membership organization, collection of persons, entity organized under Section 501 or 527 of the Internal Revenue Code, or other entity other than a natural person, except that an association does not include a political committee organized under this Article.

(10 ILCS 5/9-1.23 new)

Sec. 9-1.23. Earmarked. The term "earmarked" means a designation, instruction, or encumbrance, whether direct or indirect, express or implied, oral or written, that results in all or any part of a contribution or expenditure being made to, or expended on behalf of, a clearly identified candidate, a candidate's designated committee, or a committee in support of or opposition to a public question.

(10 ILCS 5/9-1.24 new)

Sec. 9-1.24. Conduit and intermediary. The terms "conduit" and "intermediary" are interchangeable and mean any person who receives a contribution earmarked by the contributor to be forwarded or transmitted to another.

(10 ILCS 5/9-1.25 new)

Sec. 9-1.25. Affiliated entity. "Affiliated entity" means (i) any parent or subsidiary of the entity, (ii) any member of the same unitary business group, (iii) any organization recognized by the United States Internal Revenue Service as a tax-exempt organization described in Section 501(c) of the Internal Revenue Code of 1986 (or any successor provision of federal tax law) established by the entity, or (iv) any political committee for which any of the aforementioned is the sponsoring entity.

(10 ILCS 5/9-2.5 new)

Sec. 9-2.5. Single political committee.

(a) Except as provided by this Section, no public official or candidate for public office may establish more than one political committee for each office that public official or candidate occupies or is seeking.

(b) A public official with one or more pre-existing committees bound by the limits of any subsection of Section 9-8.5 considering a candidacy for any office covered by the limits of any different subsection of Section 9-8.5 must form a new committee. A pre-existing committee created for the primary purpose of aiding that candidate's election to other offices that ceases all fundraising after the creation of an exploratory committee may transfer funds without limit to an exploratory committee. If the candidate decides against running for the new office, fails to qualify for the ballot at the next election, or loses the next election, then any remaining funds held by the exploratory committee shall be returned to contributors or donated to charity, and the committee shall be closed, within 90 days.

(c) The public officials elected President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, and Minority Leader of the House of Representatives may each establish and operate one additional political committee for the purpose of supporting the election of candidates to the General Assembly. The committees provided for in this subsection (c) shall not be considered established by the President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, or Minority Leader of the House of Representatives for the purposes of Section 9-8.5.

(10 ILCS 5/9-2.7 new)

Sec. 9-2.7. Political committee designations.

(a) Candidate committees.

(1) Each candidate shall designate in writing one and only one political committee to serve as the political committee of the candidate. The designation shall be made no later than 15 days after becoming a candidate or establishing the committee and shall be filed with the State Board of Elections. Any committee so designated may, within 10 business days after notification of the designation, reject the designation. If a committee rejects a candidate designation, the committee must return to donors any funds raised as a result of the designation and the candidate must create and designate a new committee within 5 business days after the rejection.

(2) The name of the designated committee shall include the name of the candidate who authorized the committee under paragraph (1). No political committee that is not an authorized candidate committee may include the full name of the candidate in its name.

(b) Party committees.

(1) Any political organization or party may designate in writing one and only one political committee to serve as the political committee of that organization or party for elections to State or local office. The designation shall be made no later than 15 days after the effective date of this amendatory Act of the 96th General Assembly, or 15 days after formation of the committee, whichever occurs later, and shall be filed with the State Board of Elections. The designation of a party or organization committee may be changed only upon the replacement of the party or organization chairman.

(2) The name of the designated committee shall include the name of the party or organization that authorized the committee under paragraph (1). No political committee that is not authorized by a party or organization may include the full name of that party or organization in its name.

(c) Caucus committees.

(1) The public officials elected President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, and Minority Leader of the House of Representatives may each designate in writing one and only one political committee to serve as the political committee of his or her caucus. The designation shall be made no later than 15 days after the second Wednesday in January of each odd-numbered year and shall be filed with the State Board of Elections. The designation of a caucus committee may not be changed, revoked, or altered until the second Wednesday in January of the next odd-numbered year unless a different person is elected to the office authorized to designate the caucus committee; the new leader may designate a new committee within 15 days after taking the leadership office. All contributions from all committees designated for the caucus committee for a particular caucus made during a single election period shall be aggregated for the purpose of Section 9-8.5.

(2) The name of the designated committee shall include a clear and unambiguous reference to the caucus that authorized the committee under paragraph (1). No political committee that is not an authorized caucus committee may include the name of that caucus in its name.

(d) All designations, statements, and reports required to be filed under this Section shall be filed with the Board. The Board shall retain and make the designations, statements, and reports received under this Section available for public inspection and copying in the same manner as statements of organization.

(10 ILCS 5/9-8.5 new)

Sec. 9-8.5. Limitation on contributions.

(a) It shall be unlawful for any person to make contributions to a political committee except as provided in this Section.

(b) For political committees designated by a candidate for legislative office:

(1) Natural persons may contribute no more than $2,400 during any regular election period in which the candidate who designated the committee is seeking nomination or election.

(2) Political committees established by a State political party may contribute not more than $30,000 during the regular election period that includes the general election at which the candidate who designated the committee is seeking election; provided that all committees established by a State political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

(3) Political committees established by a partisan legislative caucus may contribute not more than $30,000 during any regular election period in which the candidate who designated the committee is seeking nomination or election.

(4) Any other political committee not designated or controlled by the candidate may contribute no more than $5,000 during a regular election period in which the candidate who designated the committee is seeking nomination or election.

(5) Any corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purpose of this Section.

(c) For political committees designated by a candidate for ward or township committeeman in counties of 3,000,000 or more population or for local office;

(1) Natural persons may contribute no more than $2,4000 during any regular election period in which the candidate who designated the committee is seeking nomination or election.

(2) The candidate may designate one and only one political party whose political committees may contribute not more than $10,000 during the regular election period that includes the general election at which the candidate who designated the committee is seeking election; provided that all committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

(3) Any other political committee not designated or controlled by the candidate may contribute no more than $5,000 during a regular election period in which the candidate who designated the committee is seeking nomination or election.

(4) Any corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purpose of this Section.

(5) Committees designated by one or more candidates for any office required to file a statement of economic interests with a county clerk may select to follow the municipal election calendar. Committees that select to follow the municipal election calendar must make that decision at least 18 months prior to the next consolidated primary election or within 30 days after creation. The selection to follow the municipal election calendar is irrevocable. For committees that select to follow the municipal election calendar;

(A) Natural persons may contribute no more than $2,400 during any Municipal election period in which the candidate who designated the committee is seeking nomination or election.

(B) The candidate may designate one and only one political party whose political committees may contribute not more than $10,000 during the regular election period that includes the consolidated election at which the candidate who designated the committee is seeking election; provided that all committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

(C) Any other political committee not designated or controlled by the candidate may contribute no more than $5,000 during any municipal election period in which the candidate who designated the committee is seeking nomination or election.

(D) Any corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purpose of this Section.

(d) For political committees designated by a candidate for State office, other than for legislative or statewide office:

(1) Natural persons may contribute no more than $2,400 during any regular election period in which the candidate who designated the committee is seeking nomination, election, or retention.

(2) The candidate may designate one and only one political party whose political committees may contribute not more than $10,000 during the regular election period that includes the general election at which the candidate who designated the committee is seeking election; provided that all committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

(3) And other political committee not designated or controlled by the candidate may contribute no more than $5,000 during a regular election period in which the candidate who designated the committee is seeking nomination, election, or retention.

(4) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purposes of this Section.

(e) For political committees designated by a candidate for statewide office:

(1) Natural persons may contribute no more than $2,400 during any regular election period.

(2) The candidate may designate one and only one political party whose political committees may contribute not more than $125,000 during the regular election period in which the candidate who designated the committee is seeking election; provided that all committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

(3) Any other political committee not designated or controlled by the candidate may contribute no more than $5,000 during a regular election period.

(4) Any corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purposes of this Section.

(f) For political committees designated by an established political party;

(1) Natural persons may contribute no more than $2,400 during any regular election period during which any candidate actively supported by the party is seeking nomination or election.

(2) Any other political committee may contribute no more than $5,000 during any regular election period during which any candidate actively supported by the party is seeking nomination or election.

(3) Any corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purposes of this Section.

(g) For political committees designated by a legislative caucus:

(1) Natural persons may contribute no more than $2,400 during any regular election period during which any candidate actively supported by the caucus is seeking nomination or election.

(2) Any other political committee may contribute no more than $5,000 during any regular election period during which any candidate actively supported by the caucus is seeking nomination or election.

(3) Any corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purposes of this Section.

(h) For any other political committee:

(1) Natural persons may contribute no more than $4,800 during any period beginning on January 1 of an odd-numbered year and ending on December 31 of the next even-numbered year.

(2) Any corporation, labor organization, association, or other political committee may contribute no more than $5,000 during each election period. All contributions from associated entities, including political committees for which the corporation, labor organization, or association is the sponsoring entity, shall be aggregated for the purposes of this Section.

(i) Nothing in this Section shall prohibit political committees from dividing the proceeds of joint fun raising efforts; provided that no political committee may receive more than the limit from any one donor and all donations shall be listed from their true origin.

(j) No natural person, corporation, labor organization, or association may contribute in the aggregate more than $80,000 to political committees during any period beginning on January 1 of an odd-numbered year and ending on December 31 of the next even-numbered year.

(k) On January 1 of every odd-numbered year, the State Board of Elections shall adjust the limits established in subsections (b), (c), (d), (f), (g), (h), and (j) for inflation as determined by the Consumer Price Index for All Urban Consumers as issued by the United States Department of Labor and rounded to the nearest $100.

(l) When a corporation and any of its subsidiaries, branches, divisions, departments, or local units; a labor organization and any of its subsidiaries, branches, divisions, departments, or local units; or an association and any of its affiliates, subsidiaries, branches, divisions, departments, or local units contribute to one or more political committees or establish, maintain, or control more than one separate segregated fund qualified as a political committee, all of the related contributing entities shall be treated as a single contributing entity for the purposes of the limitations provided by this Section.

(m) Expenditures.

(1) Expenditures made by any person in cooperation, consultation, or concert with a candidate, his or her authorized committee, or the their agents shall be considered a contribution to the candidate's designated political committee for the purpose of this Section.

(2) The financing by any person of the dissemination, distribution, or republication, in whole or in part, of any broadcast or any written, graphic, or other form of campaign materials prepared by the candidate, his or her political committee, or their authorized agents shall be considered to be a contribution to the candidate's designated political committee for the purposes of this Section.

(n) For the purposes of the limitations designated by this Section, all contributions made by a person, either directly or indirectly, to a particular committee, including contributions that are in any way earmarked or otherwise directed through an intermediary or conduit to a committee, shall be treated as contributions from the person to the committee. A conduit's or intermediary's contribution limits are not affected by the forwarding of an earmarked contribution except where the conduit or intermediary exercises any direction or control over the choice of the recipient.

(o) No candidate or political committee shall knowingly accept any contribution or make any expenditure in violation of the provisions of this Section. No officer or employee of a political committee shall knowingly accept a contribution made for the benefit or use of a candidate or knowingly make any expenditure on behalf of a candidate in violation of any limitation designated for contributions and expenditures under this Section.

(p) Multiple designations.

(1) No committee may accept donations larger than those specified in this Section, regardless of the number of candidates that may designate that committee under Section 9-2.7.

(2) Any committee designated by candidates who individually qualify under different subsections of this Section shall be bound by the lower limit.

(q) Complaints.

(1) The Board shall receive complaints alleging violations of this Section. The Board may bring complaints and investigations on its own initiative when the Board has reason to believe that a violation of this Section has occurred.

(2) Upon receipt of a complaint, the Board shall hold a closed preliminary hearing to determine whether or not the complaint appears to have been filed on justifiable grounds. The closed preliminary hearing shall be conducted as soon as practicable after affording reasonable notice, a copy of the complaint, and an opportunity to testify at the hearing to both the person making the complaint and the person against whom the complaint is directed. If the Board determines that the complaint has not been filed on justifiable grounds, it shall issue a written order to dismiss the complaint without further hearing, specifying the defect in the original complaint.

(3) The Board shall have the authority to promulgate procedural rules governing the filing and hearing of complaints under this Section that are not inconsistent with this Section.

(4) In addition to any other penalties authorized by this Article, the State Board of Elections, any political committee, or any person may apply to the circuit court for a temporary restraining order or a preliminary or permanent injunction against a political committee or any other entity to cease the expenditure of funds in violation of this Section and to cease operations until the Board determines that the committee or entity is in compliance with this Section.

(r) Penalties.

(1) Any person or entity that knowingly violates this Section shall be fined the greater of $10,000 or 3 times the value of the excess contribution or expenditure.

(2) The State Board of Elections shall assess a penalty of up to $5,000 for each violation against the recipient of any contribution in violation of this Section if the recipient knew that the donation was in violation of this Section. For purposes of this Section, a recipient knows that the donation is in violation of this Section if the candidate, the committee chairman or treasurer, or any natural person paid to perform regular campaign tasks knows that the donation is in violation of this Section.

(10 ILCS 5/9-8.7 new)

Sec. 9-8.7. Soliciting of contributions by associations, corporations, or labor organizations.

(a) It is unlawful for any person affiliated in any way with a corporation to knowingly solicit an employee of that corporation for a contribution to a political committee and fail to inform the employee at the time of the solicitation of the political purposes of the fund. It is unlawful for any person affiliated in any way with a labor organization or an association to knowingly solicit a member of that labor organization or association for a contribution to a political committee and fail to inform the member at the time of the solicitation of the political purposes of the fund.

(b) It is unlawful for any person affiliated in any way with a corporation to knowingly solicit an employee of that corporation for a contribution to a political committee and fail to inform the employee at the time of the solicitation of the employee's right to refuse to contribute without any reprisal. It is unlawful for any person affiliated in any way with a labor organization or an association to knowingly solicit any member of that labor organization or association for a contribution to a political committee and fail to inform the member at the time of the solicitation of the member's right to refuse to contribute without any reprisal.

(c) Complaints.

(1) The Board shall receive complaints alleging violations of this Section. The Board may bring complaints and investigations on its own initiative when the Board has reason to believe that a violation of this Section has occurred.

(2) Upon receipt of a complaint, the Board shall hold a closed preliminary hearing to determine whether or not the complaint appears to have been filed on justifiable grounds. The closed preliminary hearing shall be conducted as soon as practicable after affording reasonable notice, a copy of the complaint, and an opportunity to testify at the hearing to both the person making the complaint and the person against whom the complaint is directed. If the Board determines that the complaint has not been filed on justifiable grounds, it shall issue a written order to dismiss the complaint without further hearing, specifying the defect in the original complaint.

(3) The Board shall have the authority to promulgate procedural rules governing the filing and hearing of complaints under this Section that are not inconsistent with this Section.

(4) In addition to any other penalties authorized by this Article, the State Board of Elections, any political committee, or any person may apply to the circuit court for a temporary restraining order or a preliminary or permanent injunction against a political committee or any other entity to cease the expenditure of funds in violation of this Section and to cease operations until the Board determines that the committee or entity is in compliance with this Section.

(d) Any person who violates this Section shall be fined $200 for each person improperly solicited. Contributions received from any donor within 6 months after an improper solicitation of that donor must be returned to the donor.

(10 ILCS 5/9-10) (from Ch. 46, par. 9-10)

Sec. 9-10. Financial reports.

(a) The treasurer of every State political committee, and the treasurer of every local political committee shall file with the Board, and the treasurer of every local political committee shall file with the county clerk, reports of campaign contributions and quarterly reports of campaign contributions and expenditures on forms to be prescribed or approved by the Board. The treasurer of every political committee that acts as both a State political committee and a local political committee shall file a copy of each report with the State Board of Elections and the county clerk. Entities subject to Section 9-7.5 shall file reports required by that Section at the times provided in this Section and are subject to the penalties provided in this Section.

(b) A political committee that does not make an expenditure or expenditures in an aggregate amount of more than $500 on behalf of or in opposition to any (i) candidate or candidates, (ii) public question or questions, or (iii) candidate or candidates and public question or questions on the ballot at an election shall not be required to file reports prescribed in subsection (c) but may file in lieu thereof a Statement of Nonparticipation in the Election with the Board or the Board and the county clerk; except that if the political committee, by the terms of its statement of organization filed in accordance with this Article, is organized to support or oppose a candidate or public question on the ballot at the next election or primary, that committee must file reports required by subsection (c). If a political committee is not organized to support or oppose a candidate or public question on the ballot at the next election or primary and the political committee does not file a Statement of Nonparticipation, then the committee shall be deemed to have filed a Statement of Nonparticipation. If that political committee participates in that election then the committee shall be considered in violation of this subsection as if it had filed a Statement of Nonparticipation, unless the political committee files the required reports within 5 days after the political committee makes the contribution or, during the 5 days prior to the election, within 24 hours after the committee makes the contribution.

(c) Every committee shall file a report of any contribution of more than $500 received (i) with respect to elections other than the consolidated election, in the interim between the last date of the period covered by the last report filed under subsection (b) prior to the election and the date of the election or (ii) with respect to the consolidated election, in the period beginning January 1 of the year of the consolidated election through the date of the election. Each report under this subsection shall be filed with and must actually be received by the State Board of Elections within 2 business days after receipt of the contribution.

(d) Every committee shall file a report of any contribution or contributions aggregating more than $1,000 received in the interim since the last quarterly report with the State Board of Elections within 5 business days.

(e) For the purpose of this Section, a contribution is considered received on the date the public official, candidate, or political committee (or equivalent person in the case of a reporting entity other than a political committee) actually receives it or, in the case of goods or services, 2 business days after the date the public official, candidate, committee, or other reporting entity receives the certification required under subsection (b) of Section 9-6.

(f) Failure to report each contribution is a separate violation of this Section. In the final disposition of any matter by the Board on or after the effective date of this amendatory Act of the 96th General Assembly, the Board may impose fines for violations of this Section not to exceed 150% of the total amount of the contributions that were untimely reported, but in no case when a fine is imposed shall it be less than 10% of the total amount of the contributions that were untimely reported. When considering the amount of the fine to be imposed, the Board shall consider , but is not limited to, the following factors:

(1) the amount by which a contribution exceeded the threshold;

(2) the number of days the contribution was reported late; and

(3) past violations of this Section or Section 9-3 by the committee.

(g) The Board may impose fines for negligent, inadvertent, or technical violations of this Section of not more than 50%, nor less than 5%, of the total amount of the contributions that were untimely Reported. When considering the amount of the fine to be imposed, the Board shall consider, but is not limited to, the following factors:

(1) whether the violation was negligent or inadvertent in nature;

(2) whether the contribution at issue was disclosed but a violation arose because the disclosure was incorrectly characterized or reported inadvertently by another related committee;

(3) whether the violation arose from an apparent discrepancy between the date of the contribution reported by the transferring committee and the date reported by the receiving committee, if there appears to be no attempt to delay disclosure;

(4) the amount by which a contribution exceeded the threshold;

(5) the number of days the contribution was reported late; and

(6) past violations of this Section or Section 9-3 by the committee.

(h) In addition to such reports the treasurer of every political committee shall file quarterly reports of campaign contributions and expenditures. The reports shall cover the period January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31 of each year. Reports shall be filed no later than 20 days after the close of the reporting period. Reports of contributions and expenditures must be filed to cover the prescribed time periods even though no contributions or expenditures may have been received or made during the period. The Board shall assess a civil penalty not to exceed $5,000 for a violation of this subsection, except that for State officers and candidates and political committees formed for statewide office, the civil penalty may not exceed $10,000. The fine, however, shall not exceed $500 for a first filing violation for filing less than 10 days after the deadline. There shall be no fine if the report is mailed and postmarked at least 72 hours prior to the filing deadline. For the purpose of this subsection, "statewide office" and State officer" mean the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer. In addition to any fine imposed under this subsection, the State Board of Elections may order any political committee that has failed to file 2 successive quarterly reports within 30 days after the day the report was due to conduct an audit of all financial records required to be maintained by the committee at the time the audit is ordered. The committee ordered to conduct an audit shall deliver a certified copy of the audit to the Board within 90 calendar days after the day the audit was ordered. If the committee fails to deliver a certified audit in the time required, the Board shall assess a civil penalty of $250 per day that the audit is late, not to exceed $5,000.

(i) A political committee that acts as either (i) a State and local political committee or (ii) a local political committee and that files reports electronically under Section 9-28 is not required to file copies of the reports with the appropriate county clerk If the county clerk has a system that permits access to, and duplication of, reports that are filed with the State Board of Elections. A State and local political committee or local political committee shall file with the county clerk a copy of its statement of organization pursuant to Section 9-3.

(j) A copy of each report or statement filed under this Article shall be preserved by the person filing it for a period of 2 years from the date of filing.

(a) The treasurer of every state political committee and the treasurer of every local political committee shall file with the Board, and the treasurer of every local political committee shall file with the county clerk, reports of campaign contributions, and semi-annual reports of campaign contributions and expenditures on forms to be prescribed or approved by the Board. The treasurer of every political committee that acts as both a state political committee and a local political committee shall file a copy of each report with the State Board of Elections and the county clerk. Entities subject to Section 9-7.5 shall file reports required by that Section at times provided in this Section and are subject to the penalties provided in this Section.

(b) This subsection does not apply with respect to general primary elections. Reports of campaign contributions shall be filed no later than the 15th day next preceding each election in connection with which the political committee has accepted or is accepting contributions or has made or is making expenditures. Such reports shall be complete as of the 30th day next preceding each election. The Board shall assess a civil penalty not to exceed $5,000 for a violation of this subsection, except that for State officers and candidates and political committees formed for statewide office, the civil penalty may not exceed $10,000. The fine, however, shall not exceed $500 for a first filing violation for filing less than 10 days after the deadline. There shall be no fine if the report is mailed and postmarked at least 72 hours prior to the filing deadline. For the purpose of this subsection, "statewide office" and "State officer" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer. However, a continuing political committee that does not make an expenditure or expenditures in an aggregate amount of more than $500 on behalf of or in opposition to any (i) candidate or candidates, (ii) public question or questions, or (iii) candidate or candidates and public question or questions on the ballot at an election shall not be required to file the reports prescribed in this subsection (b) and subsection (b-5) but may file in lieu thereof a Statement of Nonparticipation in the Election with the Board or the Board and the county clerk; except that if the political committee, by the terms of its statement of organization filed in accordance with this Article, is organized to support or oppose a candidate or public question on the ballot at the next election or primary, that committee must file reports required by this subsection (b) and by subsection (b-5).

(b-5) Notwithstanding the provisions of subsection (b) and Section 1.25 of the Statute on Statutes, any contribution of more than $500 received (i) with respect to elections other than the general primary election, in the interim between the last date of the period covered by the last report filed under subsection (b) prior to the election and the date of the election or (ii) with respect to general primary elections, in the period beginning January 1 of the year of the general primary election and prior to the date of the general primary election shall be filed with and must actually be received by the State Board of Elections within 2 business days after receipt of such contribution.

A continuing political committee that does not support or oppose a candidate or public question on the ballot at a general primary election and does not make expenditures in excess of $500 on behalf of or in opposition to any candidate or public question on the ballot at the general primary election shall not be required to file the report prescribed in this subsection unless the committee makes an expenditure in excess of $500 on behalf of or in opposition to any candidate or public question on the ballot at the general primary election. The committee shall timely file the report required under this subsection beginning with the date the expenditure that triggered participation was made. The State Board shall allow filings of reports of contributions of more than $500 under this subsection (b-5) by political committees that are not required to file electronically to be made by facsimile transmission.

For the purpose of this subsection, a contribution is considered received on the date the public official, candidate, or political committee (or equivalent person in the case of a reporting entity other than a political committee) actually receives it or, in the case of goods or services, 2 business days after the date the public official, candidate, committee, or other reporting entity receives the certification required under subsection (b) of Section 9-6.

Failure to report each contribution is a separate violation of this subsection. In the final disposition of any matter by the Board on or after the effective date of this amendatory Act of the 93rd General Assembly, the Board may impose fines for violations of this subsection not to exceed 100% of the total amount of the contributions that were untimely reported, but in no case when a fine is imposed shall it be less than 10% of the total amount of the contributions that were untimely reported. When considering the amount of the fine to be imposed, the Board shall consider, but is not limited to, the following factors:

(1) whether in the Board's opinion the violation was committed inadvertently, negligently, knowingly, or intentionally;

(2) the number of days the contribution was reported late; and

(3) past violations of Sections 9-3 and 9-10 of this Article by the committee.

(c) In addition to such reports the treasurer of every political committee shall file semi-annual reports of campaign contributions and expenditures no later than July 20th, covering the period from January 1st through June 30th immediately preceding, and no later than January 20th, covering the period from July 1st through December 31st of the preceding calendar year. Reports of contributions and expenditures must be filed to cover the prescribed time periods even though no contributions or expenditures may have been received or made during the period. The Board shall assess a civil penalty not to exceed $5,000 for a violation of this subsection, except that for State officers and candidates and political committees formed for statewide office, the civil penalty may not exceed $10,000. The fine, however, shall not exceed $500 for a first filing violation for filing less than 10 days after the deadline. There shall be no fine if the report is mailed and postmarked at least 72 hours prior to the filing deadline. For the purpose of this subsection, "statewide office" and "State officer" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer.

(c-5) A political committee that acts as either (i) a State and local political committee or (ii) a local political committee and that files reports electronically under Section 9-28 is not required to file copies of the reports with the appropriate county clerk if the county clerk has a system that permits access to, and duplication of, reports that are filed with the State Board of Elections. A State and local political committee or a local political committee shall file with the county clerk a copy of its statement of organization pursuant to Section 9-3.

(d) A copy of each report or statement filed under this Article shall be preserved by the person filing it for a period of two years from the date of filing.

(Source: P.A. 94-645, eff. 8-22-05; 95-6, eff. 6-20-07; 95-957, eff. 1-1-09.)

(10 ILCS 5/9-14.5 new)

Sec. 9-14.5. Disclosure by contribution coordinator.

(a) As used in this Section:

(1) "Contribution bundle" means one or more contributions earmarked for a committee, other than the contribution coordinator, that are made by at least one contributor other than the contribution coordinator and that are delivered by or credited by the recipient to the contribution coordinator with an aggregate value of at least $3,000 during the interim since the last quarterly disclosure period.

(2) "Contribution coordinator" means a Natural person or entity that: (i) functions as a conduit or intermediary with respect to a political committee; (ii) is credited by a candidate, public official, or political committee, through records, designations, or other means of recognition, with raising contributions made by one or more other persons to benefit that candidate, public official, or political committee; or (iii) a political committee knows, or reasonably should know, has raised contributions earmarked by one or more other persons to the political committee. "Contribution coordinator" does not include any person who is an officer or paid employee of a committee with respect to that committee, nor does it include any form of electronic clearinghouse used solely for processing financial transactions by credit card or other means.

(b) No political committee shall accept from a contribution coordinator a contribution bundle unless the bundle is accompanied by the coordinator's written disclosure, with respect to each contribution in the contribution bundle, of all of the contribution information required for reports filed under Section 9-10, and the original date of each individual contribution, together with the name, address, occupation, and employer of the contribution coordinator. That disclosure shall be filed with the State Board of Elections within 5 days after receipt, or upon transmittal to the intended recipient, whichever is earlier.

(c) A political committee that receives a disclosure under subsection (b) must electronically file the disclosure with the State Board of Elections within 5 business days after receipt. During the 30 days before a general or consolidated election, or in the period beginning January 1 of the year of a general primary election and prior to the date of the general primary election, the disclosures must be made within 2 working days.

(d) For the purpose of the contribution limits established by this Article, each contribution in a contribution bundle is attributed to the person that made the contribution through the contribution coordinator and is not attributed to the contribution coordinator unless the contribution coordinator made that contribution or unless the coordinator exercised direction or control over the destination of the contribution.

(e) A candidate, public official, or political committee that accepts a contribution in violation of this Section shall return the contribution to the contribution coordinator, or donate the contribution to a charitable organization approved by the State Board of Elections, within 5 business days after receipt. A contribution accepted in violation of this Section and not disposed of as provided in this subsection shall escheat to the State treasury.

(f) No person or entity that is prohibited from making contributions to a committee may serve as a contribution coordinator with respect to that committee, and any person or entity that is prohibited from contributing to a committee and that receives an earmarked contribution to that committee, shall return the contribution to the contributor and shall not transmit the contribution or any report of the contribution to the committee.

(10 ILCS 5/9-29 new)

Sec. 9-29. Audit.

(a) As part of the verification required of each report filed under Section 9-14, political committees organized under this Article shall conduct audits of their finances and reports when directed to do so by the State Board of Elections. An audit shall be paid for by the committee and shall cover all financial records required to be maintained by the committee at the time the audit is ordered.

(b) The State Board of Elections shall order political committees to conduct an audit under this Section as follows:

(1) Twice a year, within 30 days after the filing deadline for quarterly reports, the Board shall divide committees into groups based on the sum total of reported receipts. The groups shall include committees that have (A) less than $3,000; (B) at least $3,000 but not more than $10,000; (C) more than $10,000 but not more than $25,000; (D) more than $25,000 but not more than $100,000; and (E) more than $100,000 or have not filed reports by the 30th day after the filing deadline. The Board shall, by a random method of its choosing, select 1.0% of the committees in Group (A), 2.0% of the committees in Group (B), 3.0% of the committees in Group (C), 4.0% of the committees in Group (D), and 5.0% of the committees in Group (E) and order that they conduct audits.

(2) By affirmative vote of any 4 of the Board members. Board members voting to order an audit shall publicly state their reasons for so doing and may limit the audit to a particular matter or time frame.

(c) Audits shall conform to generally accepted accounting principles.

(d) Committees ordered to conduct audits shall deliver a certified copy of the audit to the Board within 45 calendar days after the date of the Board meeting at which the audit was ordered. The Board by affirmative vote of any 4 of its members may grant one 45-day extension to complete the audit. Copies shall be delivered in both written and electronic formats. The Board shall post copies of all audits on its website.

(e) Failure to deliver a certified audit in a timely manner is a business offense punishable by a fine of $250 per day that the audit is late, up to a maximum of $5,000. In the event that a committee dissolves before paying any part of a fine issued under this Section, the chairman and the treasurer of the committee shall be personally, jointly, and severably liable for any outstanding balance.

Section 97. Severability. The provisions of this Act are severable. If any provision of this Act is held invalid by a court of competent jurisdiction, the invalidity does not affect other provisions of the Act that can be given effect without the invalid provision.