103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2349

 

Introduced 2/14/2023, by Rep. Kelly M. Cassidy

 

SYNOPSIS AS INTRODUCED:
 
10 ILCS 5/9-25.1  from Ch. 46, par. 9-25.1; formerly   Ch. 46, pars. 102, 103 and 104
10 ILCS 5/Art. 9A heading new
10 ILCS 5/9A-5 new
10 ILCS 5/9A-10 new
10 ILCS 5/9A-15 new
10 ILCS 5/9A-20 new
10 ILCS 5/9A-25 new
10 ILCS 5/9A-30 new
10 ILCS 5/9A-35 new
10 ILCS 5/9A-40 new
10 ILCS 5/9A-45 new
10 ILCS 5/9A-50 new
10 ILCS 5/9A-55 new
10 ILCS 5/9A-60 new
10 ILCS 5/9A-65 new
10 ILCS 5/9A-70 new
10 ILCS 5/9A-75 new
30 ILCS 105/5.990 new

    Amends the Election Code. Provides that the amendatory Act may be referred to as the Small Donor Democracy Matching System for Fair Elections Act. Creates a small donor campaign contribution matching system for candidates for the offices of Governor, Lieutenant Governor, Attorney General, State Comptroller, State Treasurer, Secretary of State, State Senator, and State Representative. Creates the Small Donor Democracy Matching Fund as a special fund in the State treasury. Sets forth requirements for accessing the small donor matching system. Sets forth provisions for the funding of the matching contributions. Imposes limits on the access to matching funds. Allows the General Assembly to increase various amounts, subject to public referendum. Provides for penalties for violations of the provisions. Sets forth disclosure requirements. Creates the Campaign Finance Board within the State Board of Elections to implement the campaign contribution matching system. Includes severability provisions. Effective immediately.


LRB103 26407 BMS 52770 b

 

 

A BILL FOR

 

HB2349LRB103 26407 BMS 52770 b

1    AN ACT concerning elections.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the Small Donor
5Democracy Matching System for Fair Elections Act.
 
6    Section 5. The Election Code is amended by changing
7Section 9-25.1 and by adding Article 9A as follows:
 
8    (10 ILCS 5/9-25.1)  (from Ch. 46, par. 9-25.1; formerly Ch.
9      46, pars. 102, 103 and 104)
10    Sec. 9-25.1. Election interference.
11    (a) As used in this Section, "public funds" means any
12funds appropriated by the Illinois General Assembly or by any
13political subdivision of the State of Illinois.
14    (b) No public funds shall be used to urge any elector to
15vote for or against any candidate or proposition, or be
16appropriated for political or campaign purposes to any
17candidate or political organization. This Section shall not
18prohibit the use of public funds for dissemination of factual
19information relative to any proposition appearing on an
20election ballot, or for dissemination of information and
21arguments published and distributed under law in connection
22with a proposition to amend the Constitution of the State of

 

 

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1Illinois. However, this Section does not apply to funds
2expended in connection with the campaign contribution matching
3program established in Article 9A of this Code or similar
4systems of public financing for elections established by a
5home rule unit of government.
6    (c) The first time any person violates any provision of
7this Section, that person shall be guilty of a Class B
8misdemeanor. Upon the second or any subsequent violation of
9any provision of this Section, the person violating any
10provision of this Section shall be guilty of a Class A
11misdemeanor.
12(Source: P.A. 87-1052.)
 
13    (10 ILCS 5/Art. 9A heading new)
14
ARTICLE 9A. CAMPAIGN CONTRIBUTION MATCHING

 
15    (10 ILCS 5/9A-5 new)
16    Sec. 9A-5. Legislative findings. The General Assembly
17finds that the current campaign finance system:
18        (1) discourages many otherwise qualified candidates
19    from running for office because of the need to raise
20    substantial sums of money to be competitive and to enable
21    them to adequately get their message out to voters;
22        (2) forces candidates to raise larger and larger
23    percentages of money from interest groups that have a
24    specific financial stake in matters before State

 

 

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1    government to keep pace with rapidly increasing campaign
2    costs;
3        (3) diminishes elected officials' accountability to
4    their constituents by compelling them to be
5    disproportionately accountable to the relatively small
6    group of contributors who finance their election
7    campaigns;
8        (4) diminishes the rights of all citizens to equal and
9    meaningful participation in the democratic process;
10        (5) disadvantages challengers, because campaign
11    contributors tend to give their money to incumbents, thus
12    causing elections to be less competitive;
13        (6) burdens candidates with the incessant rigors of
14    fundraising and thus decreases the time available to carry
15    out their public responsibilities; and
16        (7) necessitates the creation of a Fair Elections
17    Small Donor Democracy Matching System to address these
18    concerns.
 
19    (10 ILCS 5/9A-10 new)
20    Sec. 9A-10. Scope. The program created under this Article
21applies to candidates for the offices of Governor, Attorney
22General, State Comptroller, State Treasurer, Secretary of
23State, State Senator, and State Representative. Candidates for
24these offices are eligible to participate in the matching
25funds program established by this Article.
 

 

 

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1    (10 ILCS 5/9A-15 new)
2    Sec. 9A-15. Definitions. As used in this Article:
3    "Board" means the Campaign Finance Board of the State
4Board of Elections created under this Article.
5    "Candidate" means any person who seeks nomination for
6election, election to, or retention in public office as a
7Constitutional State Officer or a member of the Illinois
8Senate or General Assembly. A person seeks nomination for
9election, election, or retention if he or she (1) takes the
10action necessary under the laws of this State to attempt to
11qualify for nomination for election, election to, or retention
12in public office or (2) receives contributions or makes
13expenditures, or gives consent for any other person to receive
14contributions or make expenditures with a view to bringing
15about his or her nomination for election or election to or
16retention in public office.
17    "Contribution" has the meaning ascribed to it in Section
189-1.4 of this Code, but does not include anything deemed an
19independent expenditure under this Article.
20    "Coordination" means an expenditure made in cooperation,
21consultation, or concert with or at the request or suggestion
22of a candidate, an authorized committee of a candidate, a
23political committee of a political party, or agents of the
24candidate or candidate political committee, or any payment for
25any communication which republishes, disseminates, or

 

 

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1distributes, in whole or in part, any broadcast or any
2written, graphic, or other form of campaign material prepared
3by the candidate or his or her candidate political committee
4or their agents.
5    "Election cycle" means the time beginning on the January 1
6following a general election and ending on the December 31
7following the next general election.
8    "Expenditure" means:
9        (1) a payment, distribution, purchase, loan, advance,
10    deposit, gift of money, or anything of value, in
11    connection with the nomination for election, election, or
12    retention of any person to or in public office or in
13    connection with any question of public policy; or
14        (2) a payment, distribution, purchase, loan, advance,
15    deposit, gift of money, or anything of value that
16    constitutes an electioneering communication made in
17    concert or cooperation with or at the request, suggestion,
18    or knowledge of a candidate, a political committee, or any
19    of their agents; or a transfer of funds by a political
20    committee to another political committee.
21    However, "expenditure" does not include:
22        (A) the use of real or personal property and the cost
23    of invitations, food, and beverages, voluntarily provided
24    by an individual in rendering voluntary personal services
25    on the individual's residential premises for
26    candidate-related activities; provided the value of the

 

 

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1    service provided does not exceed an aggregate of $150 in a
2    reporting period as the Board may further define; or
3        (B) sale of any food or beverage by a vendor for use in
4    a candidate's campaign at a charge less than the normal
5    comparable charge, if such charge for use in a candidate's
6    campaign is at least equal to the cost of such food or
7    beverage to the vendor.
8    "Fund" means the Small Donor Democracy Matching Fund
9established under this Article.
10    "Immediate family" means a person's parents, siblings,
11spouse, and children.
12    "Independent expenditure" means an expenditure by anyone,
13including, but not limited to, any individual, corporation,
14partnership, political action committee, association, or
15party, that would otherwise constitute a contribution or
16expenditure under this Article, but that is made without any
17cooperation, consultation, or agreement with any political
18candidate.
19    "Initial qualifying contribution" means a qualified
20contribution used for the purpose of determining whether a
21candidate has raised the minimum number of contributions to
22participate in the small donor matching funds system under
23this Article.
24    "Matching funds" means funds paid to a participating
25candidate under this Article.
26    "Matching funds program" means the campaign donation

 

 

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1matching funds program created under this Article.
2    "Nomination period" means the period specified under this
3Code during which candidates must submit nomination papers for
4any of the State offices covered by this Article.
5    "Non-participating candidate" means any candidate who is
6not a participating candidate, including any candidate who has
7not qualified for matching funds or who has elected not to
8participate in the matching funds program.
9    "Participating candidate" means a candidate who qualifies
10for matching funds under this Article and opts to participate
11in the matching funds program created under this Article.
12    "Qualified contribution" means a monetary contribution not
13less than $25 and not greater than the initial $150 of any
14contribution made by a qualified contributor.
15    "Qualified contributor" means a natural person resident in
16the State who will be eligible to vote within the current
17election cycle other than the candidate, members of the
18candidate's immediate family, and any political action
19committee controlled by the candidate.
20    "Qualifying period" means the period beginning the day
21after the date of the most recent general election for the
22specific office or seat that a candidate is seeking and ending
23on the day prior to the election (whether primary or general
24election) for which the matching funds are sought.
 
25    (10 ILCS 5/9A-20 new)

 

 

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1    Sec. 9A-20. Small Donor Democracy Matching Fund.
2    (a) There is created a Small Donor Democracy Matching Fund
3as a special fund in the State treasury. The Fund is
4established for the purposes of:
5        (1) providing public financing for the election
6    campaigns of participating candidates under this Article;
7    and
8        (2) paying for the administrative and enforcement
9    costs of the Board related to the matching funds program
10    created by this Article.
11    (b) The General Assembly shall annually appropriate either
12$1 per resident of this State or one-twentieth of 1% of the
13State's annual budget, whichever is greater, to the Fund. The
14General Assembly shall appropriate no more than $50,000,000 to
15the Fund in any election cycle.
16    (c) Other revenue that shall be deposited into the Fund
17includes:
18        (1) any funds returned by any participating candidate
19    that remain unspent by a participating candidate following
20    the date of the election for which they were distributed,
21    in accordance with subsection (c) of Section 9A-55 of this
22    Code;
23        (2) fines levied by the Board or courts against
24    candidates for violations of this Code, except as
25    otherwise provided by this Code; and
26        (3) voluntary donations made directly to the Fund.
 

 

 

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1    (10 ILCS 5/9A-25 new)
2    Sec. 9A-25. Eligibility for matching funds.
3    (a) To be eligible to be certified as a participating
4candidate, a candidate must:
5        (1) During the qualifying period for the election
6    involved, choose to participate in the matching funds
7    program by filing with the Board a written application for
8    certification as a participating candidate in such form as
9    may be prescribed by the Board, containing the identity of
10    the participating candidate, the office that the
11    participating candidate seeks, and the participating
12    candidate's signature, under penalty of perjury,
13    certifying that:
14            (A) the participating candidate has complied since
15        the last election or the effective date of this
16        amendatory Act of the 103rd General Assembly,
17        whichever is most recent, and will continue to comply,
18        with the restrictions of this Article during the
19        applicable election cycle; a candidate who has
20        accepted impermissible contributions prior to filing
21        to participate in this program shall return any such
22        impermissible contributions prior to filing to
23        participate in this matching funds program to the
24        extent practical, as determined by the Board in
25        adopted rules; and

 

 

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1            (B) the participating candidate's campaign
2        committee has filed all campaign finance reports
3        required by law during the applicable election cycle
4        to date and that they are complete and accurate.
5        (2) Sign a participating candidate contract signifying
6    the candidate's prior compliance and continuing commitment
7    to comply with the requirements of this Article, to comply
8    with the contribution limits set forth in this Article and
9    in that contract, and to comply with any other
10    requirements set forth in that contract.
11        (3) Meet all requirements of applicable law to be
12    listed on the ballot.
13        (4) Before the close of the qualifying period, collect
14    at least the following number of initial qualifying
15    contributions for the following offices: 1,000 for
16    candidates for Governor; 500 for candidates for Lieutenant
17    Governor, Attorney General, State Comptroller, State
18    Treasurer, and Secretary of State; 200 for candidates for
19    State Senator; and 100 for candidates for State
20    Representative.
21        Each initial qualifying contribution shall:
22            (A) have the initial qualified contributor's
23        signature, or an electronic equivalent for any
24        donations received on-line, signifying that the
25        initial qualified contributor understands that the
26        purpose of the initial qualifying contribution is to

 

 

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1        help the candidate qualify for the matching funds
2        program and that the contribution is made without
3        coercion or reimbursement; and
4            (B) be acknowledged by a written receipt, or the
5        electronic equivalent for any donation received
6        on-line, to the initial qualified contributor, with a
7        copy retained by the candidate; the receipt shall
8        include the initial qualified contributor's signature,
9        printed name, home address, and telephone number, if
10        any, and the name of the candidate on whose behalf the
11        contribution is made.
12        A contribution for which a candidate has not obtained
13    a signed and fully completed receipt, or its electronic
14    equivalent, shall not be counted as an initial qualifying
15    contribution for the purpose of satisfying this
16    qualification requirement.
17    (b) In addition to the requirements of subsection (a) of
18this Section, in order for a candidate for Governor or
19Lieutenant Governor to be eligible to be certified as a
20participating candidate, the other member of the team of
21candidates for the offices of Governor and Lieutenant Governor
22must also be a participating candidate.
23    (c) To remain eligible to continue to receive matching
24funds under this Article, a candidate must:
25        (1) maintain records of all contributions, receipts,
26    and expenditures as required by the Board;

 

 

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1        (2) obtain and furnish to the Board any information it
2    may request relating to his or her campaign expenditures,
3    contributions, and qualified contributions and furnish any
4    documentation and other proof of compliance with this
5    Article as may be requested by the Board; and
6        (3) remain in compliance with the requirements set
7    forth in this Article.
8    (d) At the earliest practicable time after a candidate
9files a written application for certification as a
10participating candidate with the Board, in no event more than
1110 business days, the Board shall certify in writing that the
12candidate is or is not eligible. Eligibility may be revoked if
13the Board determines, after appropriate due process, that a
14candidate has committed a substantial violation of the
15requirements of this Article, in which case all matching funds
16granted to the candidate shall be repaid to the Fund. A
17determination shall be made by the Board after an appropriate
18hearing, affording due process to the aggrieved party, under
19rules adopted by the Board that further define what
20constitutes a "substantial violation" and that set forth the
21procedures to be followed in connection with any such hearing.
 
22    (10 ILCS 5/9A-30 new)
23    Sec. 9A-30. Matching funds payments.
24    (a) A candidate who is certified as a participating
25candidate shall receive payment of matching funds equal to 6

 

 

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1times the amount of qualified contributions received by the
2participating candidate during the election cycle with respect
3to a single election subject to the aggregate limit on the
4total amount of matching funds payments to a participating
5candidate specified in subsection (b) of this Section, unless
6the candidate has no opposition on the ballot. Unopposed
7candidates shall not be eligible to receive matching funds
8unless and until they cease to be unopposed; however, any
9candidate who had already received matching funds under this
10Article prior to becoming unopposed shall be entitled to
11retain those funds and spend those funds in accordance with
12Section 9A-50 of this Code.
13    (b) Subject to the requirements of subsection (a) of
14Section 9A-40 of this Code, the aggregate amount of matching
15funds payments that may be made to a participating candidate
16during an election cycle may not exceed the following:
17        (1) $5,000,000 for candidates for Governor;
18        (2) $1,000,000 for candidates for Lieutenant Governor,
19    Attorney General, State Comptroller, State Treasurer, and
20    Secretary of State;
21        (3) $300,000 for candidates for State Senator; and
22        (4) $150,000 for candidates for State Representative.
23    (c) A participating candidate's application for matching
24funds, including an initial request submitted with an
25application for certification as a participating candidate,
26shall be made using a form prescribed by the Board and shall be

 

 

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1accompanied as necessary by initial qualifying contribution
2receipts and any other information the Board requires by rule.
3This application shall be accompanied by a signed statement
4from the participating candidate indicating that all
5information on the initial qualifying contribution receipts is
6complete and accurate to the best of the participating
7candidate's knowledge. The Board shall verify that a
8participating candidate's qualified contributions meet all of
9the requirements and limitations of this Article prior to the
10disbursement of matching funds to the participating candidate.
11    (d) The Board shall make an initial payment of the
12matching funds within 10 business days of the Board's
13certification of a participating candidate's eligibility in
14accordance with the provisions of this Article, or as soon
15thereafter as is practicable.
16    (e) The Board shall establish a schedule for the
17submission of matching funds payment requests, permitting a
18participating candidate to submit a matching funds payment
19request at least once per month, in accordance with a schedule
20established by the Board.
21    (f) When 90% of the existing Fund has been distributed,
22the Board shall give notice within 24 hours to all candidates
23that only 10% of the Fund remains. Thereafter, the Board shall
24make no further matching funds payments until after election
25day and it shall only pay any requests submitted after notice
26has been distributed under this subsection (f) proportionally,

 

 

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1spread over all candidates and requests equally, in a manner
2to be determined in greater detail pursuant to rules adopted
3by the Board.
 
4    (10 ILCS 5/9A-35 new)
5    Sec. 9A-35. Limits on contributions.
6    (a) Subject to the requirements of subsection (a) of
7Section 9A-40 of this Code, no candidate shall accept,
8directly or indirectly, any contribution (or combination of
9contributions) from the same person, corporation, partnership,
10political party, political action committee, or other legal
11entity in excess of $500. However, if a candidate in the
12participating candidate's race exceeds the self-funding
13thresholds established in subsection (h) of Section 9-8.5 of
14this Code for that race, the limitation under this subsection
15(a) is increased to $2,500.
16    (b) No participating candidate shall accept any
17contribution (or combination of contributions) from any
18person, corporation, partnership, or other legal entity who
19lobbies members of the State executive or legislative
20branches, within the meaning of the Lobbyist Registration Act,
21or does business with the State. No participating candidate
22shall encourage, support, cooperate, or coordinate with any
23independent expenditure committee or any individual engaging
24in independent expenditures, whether in support of the
25candidate or in opposition to the candidate's opponent. The

 

 

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1Board may adopt additional rules defining who constitutes a
2"lobbyist" and who is deemed to be "doing business" with the
3State within the meaning of this Article.
4    (c) No participating candidate shall make expenditures
5from or use his or her own personal funds or the personal funds
6or property held jointly with members of his or her immediate
7family in connection with his or her nomination for election
8or election, except as a contribution to his or her political
9committee in an amount that does not exceed 10 times the
10maximum contribution applicable under subsection (a) of this
11Section. No participating candidate shall make expenditures
12from or use other personal funds or property of his or her
13immediate family in furtherance of his or her own campaign.
 
14    (10 ILCS 5/9A-40 new)
15    Sec. 9A-40. Adjustment.
16    (a) The Board shall revise the limits on contributions and
17on overall contributions at least one year prior to the next
18general primary election. The Board shall adjust them by an
19amount equal to the change in the Consumer Price Index for all
20Urban Consumers for all items published by the United States
21Department of Labor for the 12-month calendar year preceding
22readjustment. Amounts shall be rounded to the nearest $10. The
23revised overall limits shall be published no later than one
24year prior to the date of the next general primary election.
25    (b) The General Assembly shall review the amounts and

 

 

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1numbers of required initial qualifying contributions, the
2ratio of matching funds, the additional limits on
3contributions, and the limits on overall contributions in the
46-month period following each general election to determine if
5they shall stay the same, after any adjustment for inflation
6under subsection (a) of this Section, or be increased for the
7next general primary election and general election.
8    (c) If the General Assembly determines that any of the
9figures specified in subsection (b) of this Section should
10change, then any proposed change, other than an adjustment for
11inflation under subsection (a) of this Section, shall be
12adopted for the next general election by a majority vote of
13each chamber of the General Assembly and shall also be
14submitted to the voters via a binding referendum for
15ratification at the next consolidated election for approval or
16rejection with respect to any future general elections.
 
17    (10 ILCS 5/9A-45 new)
18    Sec. 9A-45. Campaign accounts for participating
19candidates. During an election cycle, each participating
20candidate shall conduct all campaign financial activities
21through a single political action committee, consistent with
22subsection (b) of Section 9-2 of this Code, and shall comply
23with any additional recordkeeping requirements imposed under
24this Article by the Board.
 

 

 

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1    (10 ILCS 5/9A-50 new)
2    Sec. 9A-50. Expenditures of matching funds.
3    (a) A participating candidate shall use matching funds
4only for direct campaign purposes. The Board may further
5define the phrase "direct campaign purposes" by rule.
6    (b) Neither a participating candidate nor anyone acting on
7his or her behalf shall use matching funds for:
8        (1) costs of legal defense in any campaign law
9    enforcement proceeding;
10        (2) indirect campaign purposes, including, but not
11    limited to:
12            (A) the participating candidate's personal support
13        or compensation to the participating candidate or the
14        participating candidate's immediate family;
15            (B) clothing, haircuts, and other items related to
16        the participating candidate's personal appearance;
17            (C) a contribution or loan to the campaign
18        committee of another candidate, a party committee, or
19        other political committee;
20            (D) an independent expenditure;
21            (E) automobile purchases, tuition payments, or
22        childcare costs;
23            (F) dues, fees, or gratuities at a country club,
24        health club, recreational facility, or other
25        nonpolitical organization unless part of a specific
26        fundraising event that takes place on the

 

 

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1        organization's premises;
2            (G) admission to a sporting event, theater,
3        concert, or other entertainment event not part of a
4        specific campaign activity; or
5            (H) gifts, except for brochures, buttons, signs,
6        and other campaign materials and token gifts valued at
7        not more than $50 that are for the purpose of
8        expressing gratitude, condolences, or congratulations.
 
9    (10 ILCS 5/9A-55 new)
10    Sec. 9A-55. Disclosure requirements and procedures; return
11of funds.
12    (a) Each participating candidate shall file reports of
13contribution receipts and of expenditures of matching funds
14and other campaign funds at such times and in such manners as
15the Board may prescribe by rule, including, but not limited
16to, reports containing information necessary to verify that
17the qualified contributions received by participating
18candidates and that the matching funds spent by participating
19candidates comply with the restrictions and requirements of
20this Article.
21    (b) The Board by rule shall adopt procedures for auditing
22any reports filed with it as well as related reports filed with
23the State Board of Elections and issuing a public report
24summarizing the election results, the campaign expenditures
25made in connection with offices covered by this Article, and

 

 

HB2349- 20 -LRB103 26407 BMS 52770 b

1the level and amount of matching funds provided to each
2campaign.
3    (c) Within 90 days after the consolidated or general
4election, every participating candidate who received matching
5funds under this Article shall repay the Fund any unused
6matching funds, calculated as follows: any unused campaign
7funds shall be multiplied by a ratio consisting of the total
8amount of matching funds received by the campaign in the
9numerator and the total amount of campaign funds raised by the
10campaign in the denominator. The amount of any repayment under
11this subsection (c) shall not exceed the total amount of
12matching funds paid to the campaign.
 
13    (10 ILCS 5/9A-60 new)
14    Sec. 9A-60. Joint campaign contributions and expenditures.
15Where multiple candidates are otherwise permitted under State
16law to engage in joint efforts to raise campaign contributions
17or in joint campaign expenditures, any contribution received
18at a joint fundraising event and any joint campaign
19expenditures shall be appropriately allocated among the
20participating candidates in a reasonable manner to be agreed
21upon by those candidates participating in the activity. The
22Board may review the reasonableness of any allocation under
23this Section.
 
24    (10 ILCS 5/9A-65 new)

 

 

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1    Sec. 9A-65. Application of contribution and expenditure
2limitations to certain political activities. Nothing in this
3Article shall be construed to restrict candidates or their
4agents from making appearances at events sponsored or paid for
5by persons, political committees, or other entities that are
6not in any way affiliated with the candidate or any agent of
7the candidate. The costs of these events shall not be
8considered contributions to or expenditures by the candidate
9for purposes of this Article simply because the candidate or
10agent appears at such an event. However, this provision does
11not apply to events at which contributions are solicited on
12behalf of the participating candidate.
 
13    (10 ILCS 5/9A-70 new)
14    Sec. 9A-70. Campaign Finance Board; general powers and
15duties.
16    (a) A Campaign Finance Board is created within the State
17Board of Elections, consisting of 5 members appointed by the
18Governor with the advice and consent of the Senate. Each party
19or caucus represented in the General Assembly shall have at
20least one member on the Board. However, the Chairperson of the
21Board shall not be affiliated with any political party. The
22initial appointments required under this subsection (a) shall
23be made within 6 months of the effective date of this
24amendatory Act of 103rd General Assembly, and their terms
25shall commence on the January 1 following appointment. The

 

 

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1terms of office for the initial appointees shall be, except
2for the Chairperson, determined by lot as follows:
3        (1) one member shall serve a term of one year;
4        (2) one member shall serve a term of 2 years;
5        (3) one member shall serve a term of 3 years;
6        (4) one member shall serve a term of 4 years; and
7        (5) the initial Chairperson shall serve a term of 5
8    years.
9    Thereafter, each member shall be appointed for a term of 5
10years, according to the original manner of appointment. In the
11case of a vacancy in the office of a member, a member shall be
12selected to serve the remainder of the unexpired term in the
13same manner the vacating member was selected. Members shall
14serve no more than 3 consecutive terms. No member of the Board
15may be removed from office except for cause, after notice and a
16hearing by the Senate.
17    (b) To be eligible to serve as a member of the Board, an
18individual must meet all of the following qualifications
19throughout the period of his or her service:
20        (1) the member must be a resident of Illinois,
21    eligible and registered to vote;
22        (2) the member must agree that he or she and any
23    members of his or her immediate family will not make any
24    contributions to any candidate for any of the offices
25    eligible to receive matching funds during his or her term
26    of service;

 

 

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1        (3) the member must agree not to (i) serve as an
2    officer of a political party or (ii) be a candidate or
3    participate in any capacity in a campaign by a candidate
4    for any of the offices eligible to receive public matching
5    funds under this Article during his or her term of
6    service;
7        (4) the member may not otherwise be an officer or
8    employee of the State, nor a lobbyist engaged in lobbying
9    any elected officials of the State; and
10        (5) the member must agree to undergo training under
11    the supervision of the Chairperson of the Board.
12    (c) Subject to appropriations, the members of the Board
13shall be compensated at a rate specified by law while
14performing the work of the Board.
15    (d) The Board may employ necessary staff, including
16attorneys and accountants, and may utilize the services of
17employees of the State Board of Elections to assist the Board
18in carrying out its duties. Subject to appropriations, the
19total budget for the Board's operations shall not be less than
20.01% of the overall State budget.
21    (e) The Board shall have the authority to adopt rules and
22provide forms as it deems necessary to administer the matching
23funds system created by this Article. The Board shall adopt
24rules concerning the form in which contributions and
25expenditures are to be reported, the periods during which such
26reports must be filed, the measures for auditing and reporting

 

 

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1on campaign contributions and expenditures, and the
2verification required.
3    (f) The Board shall have the power to investigate all
4matters relating to the performance of its functions and any
5other matter relating to the proper administration of this
6Article. It shall have the power to require the attendance of
7witnesses, to examine and take testimony under oath of any
8persons as it shall deem necessary, and to require the
9production of books, accounts, papers, and any other relevant
10evidence relative to such investigation.
11    (g) The Board shall develop a program for informing
12candidates and the public about the small donor matching funds
13system created by this Article. The Board may prepare and make
14available educational materials, including compliance manuals
15and summaries of the relevant provisions of this program. The
16Board shall prepare and make available materials including, to
17the extent feasible, computer software, to facilitate the task
18of compliance with the disclosure and recordkeeping
19requirements under this Article.
20    (h) The Board shall have the power to render advisory
21opinions with respect to questions arising under this Article.
22These opinions may be requested in writing by any candidate,
23political committee, or member of the general public. The
24Board shall adopt rules regarding submissions and responses to
25such requests, including response times. The Board shall make
26public its response to any such requests, as well as to any

 

 

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1other formal rulings or interpretations it makes, including by
2posting them on its website, if practicable.
3    (i) The Board shall have the authority to implement any
4system established for the regulation of inauguration and
5transition donations and expenditures, including any related
6penalties. It shall also have the authority to adopt and
7implement a system for handling the transition from the
8existing campaign finance system and any pre-existing
9political committees and contributions to the small donor
10matching funds system implemented by this Article.
11    (j) The Board may take such other actions as are necessary
12and proper to carry out its functions and the purposes of
13adoption of a small donor matching funds system. The specific
14grants of power under this Section do not constitute and shall
15not be construed as limitations on the other proper and
16necessary powers of the Board.
17    (k) All final administrative decisions under this Article
18are subject to judicial review under the Administrative Review
19Law.
 
20    (10 ILCS 5/9A-75 new)
21    Sec. 9A-75. Public campaign financing program penalties.
22    (a) If a participating candidate knowingly accepts or
23spends matching funds in violation of this Article, then the
24candidate shall repay to the Fund a civil fine in an amount
25equal to twice the value of the funding unlawfully accepted or

 

 

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1spent.
2    (b) The Board shall, after a hearing affording the
3aggrieved party due process, have the authority to impose the
4fine created by this Section, to order repayment of
5overpayments that were not knowingly received, and to take any
6other appropriate action, pursuant to any additional rules
7concerning such hearings as the Board shall adopt.
8    (c) Any member of the public, as well as the Board on its
9own initiative, shall have standing to file a complaint with
10the Board alleging a violation of this Article. If a complaint
11is filed by an opposing candidate, or in coordination with an
12opposing candidate's campaign, the Board shall have the option
13of awarding costs and attorneys' fees if the complaint is
14found to have been lacking a reasonable basis.
15    (d) The Board shall adopt appropriate rules guaranteeing
16notice and due process to anyone accused of violating this
17Article and setting forth the process the Board will follow in
18investigating and adjudicating any such complaint.
 
19    Section 10. The State Finance Act is amended by adding
20Section 5.990 as follows:
 
21    (30 ILCS 105/5.990 new)
22    Sec. 5.990. The Small Donor Democracy Matching Fund.
 
23    Section 97. Severability. The provisions of this Act are

 

 

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1severable under Section 1.31 of the Statute on Statutes.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.