SB2360sam001 103RD GENERAL ASSEMBLY

Sen. Rachel Ventura

Filed: 3/8/2024

10300SB2360sam001 LRB103 28352 SPS 70515 a

AMENDMENT TO SENATE BILL 2360

AMENDMENT NO. ______. Amend Senate Bill 2360 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Judicial Campaign Reform Act.

Section 5. Definitions. In this Act:

"Allowable contribution" means a qualifying contribution, a seed money contribution, or a personal contribution authorized by this Act.

"Candidate" means any person seeking election to the office of Judge of the Supreme Court or Judge of the Appellate Court.

"Campaign" includes the primary election campaign period and the general election campaign period.

"Clean judicial race" means an election in which all candidates are eligible candidates who will receive a public financing benefit under this Act.

"General election campaign period" means the period beginning on the day after the general primary election and ending on the day of the general election.

"Electioneering communication expenditure" means an expenditure for electioneering communications as that term is defined in Article 9 of the Election Code.

"Eligible candidate" means a candidate who qualifies for public financing by collecting the required number of qualifying contributions, making all required reports and disclosures, and being certified by the State Board of Elections as being in compliance with this Act.

"Excess qualifying contribution amount" means the amount of qualifying contributions accepted by a candidate that exceeds the dollar amount of contributions required to qualify a candidate for a public financing benefit.

"Exploratory period" means the period that begins one year before the general primary election date and ends on the day before the beginning of the primary election campaign.

"Fair election debit card" means a debit card issued by the State Treasurer in accordance with Section 65 entitling a candidate and agents of the candidate designated by the candidate to draw money from an account maintained by the State Treasurer to make expenditures authorized by law.

"Fund" means the Illinois Judicial Election Democracy Trust Fund, a special fund created in the State treasury for use, subject to appropriation, by the State Board of Elections for the funding of campaigns for eligible candidates.

"Immediate family", when used with reference to a candidate, includes the candidate's spouse, parents, and children.

"Independent expenditure" means an expenditure by a person expressly advocating the election or defeat of a clearly identified candidate that is made without cooperation or consultation with a candidate, or any political committee or agent of a candidate, and that is not made in concert with, or at the request or suggestion of, any candidate or any political committee or agent of a candidate.

"Nonparticipating candidate" means a candidate who does not apply for a public financing benefit or who otherwise is ineligible or fails to qualify for a public financing benefit under this Act.

"Personal funds" means funds contributed by a candidate or a member of a candidate's immediate family.

"Primary election campaign period" means the period that begins 30 days after the last day prescribed by law for filing nomination papers and ends on the day of the general primary election.

"Public financing qualifying period" means the period beginning on July 1 of an odd-numbered year and ending on the day before the beginning of the primary election campaign period for the office of Judge of the Supreme Court or Judge of the Appellate Court.

"Qualifying contribution" means a contribution made during the public financing qualifying period that is between $5 and $100, and that is made, to a candidate, by an individual who is at least 18 years old and resides in the district in which the candidate seeks office, and that is acknowledged by written receipt identifying the contributor.

"Qualifying report" means a list of all individual qualifying contributions.

"Seed money contribution" means (1) a contribution in an amount not more than $1,000 made to a candidate during the exploratory period or the public financing qualifying period or (2) a contribution made to a candidate during the exploratory period or the public financing qualifying period consisting of personal funds of the candidate in an amount not more than the amount authorized under Section 20.

"State Board" means the State Board of Elections.

Section 10. Alternative judicial campaign financing option. There is established an alternative campaign financing option available to candidates running for office of Judge of the Supreme Court or Judge of the Appellate Court. This alternative campaign financing option is available to candidates for elections to be held beginning in the year 2026. The State Board shall administer this Act and the Fund. Candidates receiving public financing benefits under this Act shall also comply with all other applicable election and campaign laws, rules, and regulations.

Section 15. The Illinois Judicial Election Democracy Trust Fund.

(a) The Illinois Judicial Election Democracy Trust Fund is established as a special fund in the State treasury to finance the election campaigns of eligible candidates running for office of Judge of the Supreme Court or Judge of the Appellate Court and to pay administrative and enforcement costs of the State Board related to this Act. Any interest generated by the Fund is credited to the Fund. The State Board shall administer the Fund.

(b) The following shall be deposited into the Fund:

(1) At the direction of the State Board, the Comptroller shall direct and the Treasurer shall transfer $40,000,000 of the revenues from the taxes imposed by the Illinois Income Tax Act and credited to the General Revenue Fund, transferred to the Fund by the State Treasurer on or before January 1 of each year, beginning January 1, 2025. If the State Board determines that the Fund will not have sufficient revenues to cover the likely demand for funds from the Fund in an upcoming calendar year, by January 1 the State Board shall provide a report of its projections of the balances in the Fund to the General Assembly and the Governor and may request that the State Treasurer make the following transfers to the Fund from the General Revenue Fund:

(A) Up to $20,000,000, no later than February 28, 2025, reflecting an advance of the transfer of the amounts that would be received on or before January 1, 2026 under this paragraph.

(B) Up to $15,000,000, no later than July 31, 2025, reflecting an advance of the transfer of the amounts that would be received on or before January 1, 2026 under this paragraph.

(C) Up to $5,000,000, no later than September 1, 2027, reflecting a partial advance of the transfer of the amounts that would be received on or before January 1, 2028 under this paragraph.

(2) Revenue from a tax checkoff program allowing a resident of the State who files a tax return with the Department of Revenue to designate that $3 be paid into the Fund. In the case of spouses filing a joint return, each spouse may designate that not less than $3 be paid into the Fund. The Department of Revenue shall report annually the amounts designated for the Fund to the State Treasurer, who shall transfer that amount to the Fund.

(3) Any excess qualifying contributions or seed money contributions that exceed the allotted total in Section 20.

(4) Fund revenues that were distributed to an eligible candidate and that remain unspent after the candidate has lost a primary election or after all general elections.

(5) Other unspent Fund revenues distributed to any eligible candidate who does not remain a candidate throughout a primary or general election cycle.

(6) Voluntary donations made directly to the Fund. Individuals and other entities may make direct voluntary contributions to the Fund, not to exceed $1,000 per individual or entity per calendar year.

(7) Fines collected under this Act.

(c) By September 1 preceding each year in which there is an election for the office of Judge of the Supreme Court or Judge of the Appellate Court, the State Board shall publish an estimate of revenue in the Fund available for distribution to eligible candidates during the upcoming year's elections and an estimate of the likely demand for public financing during that election. The State Board may submit a request to the General Assembly to request additional funding.

Section 20. Terms of participation.

(a) Before a candidate for nomination in the general primary election may be certified as an eligible candidate, the candidate shall file a declaration of intent to seek certification as an eligible candidate and to comply with the requirements of this Act. The declaration of intent shall be filed with the State Board prior to or during the qualifying period and in accordance with forms and procedures developed by the State Board. An eligible candidate shall submit a declaration of intent within 5 business days after collecting qualifying contributions under this Act, or the qualifying contributions collected before the declaration of intent has been filed will not be applied toward the eligibility requirement in subsection (c).

(b) After becoming a candidate and before certification as an eligible candidate, a candidate may not accept contributions, except for seed money contributions, including personal funds. A candidate shall limit the candidate's personal funds and seed money contributions to the following amounts:

(1) The personal funds of a candidate contributed as seed money contributions may not exceed an aggregate amount of $25,000 for a candidate seeking nomination for the Supreme Court or Appellate Court in the First Judicial District and $15,000 for a candidate seeking nomination for the Supreme Court or the Appellate Court for a Judicial District other than the First Judicial District. No eligible candidate may make any expenditure derived from personal funds after the close of the public financing qualifying period. Eligible candidates shall not loan personal funds to their campaign.

(2) A candidate may accept seed money contributions from any individual or political committee before the end of the public financing qualifying period, so long as the total contributions from one contributor, except personal funds and qualifying contributions otherwise permitted under this Act, do not exceed $1,000 and the aggregate contributions, including personal funds, but not including qualifying contributions, do not exceed $75,000 for a candidate seeking nomination for the Supreme Court or Appellate Court in the First Judicial District and $45,000 for a candidate seeking nomination for the Supreme Court or Appellate Court for a Judicial District, other that the First Judicial District.

As used in this Section, "personal funds" includes funds from the candidate's immediate family.

(c) The State Board shall certify a candidate as an eligible candidate for receipt of public financing for a primary election if the candidate complies with subsection (a) and receives from individual qualifying contributors before the close of the public financing qualifying period qualifying contributions that total at least $25,000 for a candidate seeking nomination for the Supreme Court or Appellate Court in the First Judicial District or qualifying contributions that total at least $15,000 for a candidate seeking nomination for the Supreme Court or Appellate Court for a Judicial District, other than the First Judicial District. The State Board may require candidates to file lists of qualifying contributions in an electronic format. If so required, the State Board shall either provide, without charge, all software necessary to comply with this requirement or ensure that the necessary software is commonly available to the public at minimal cost.

(d) Each candidate shall acknowledge each qualifying contribution by providing a receipt to the contributor that contains the contributor's name and home address and shall file a report of all qualifying contributions with the State Board.

(e) The State Board shall verify a candidate's compliance with the requirements of subsection (d) by any verification and sampling techniques that the State Board considers appropriate.

(f) Qualifying contributions and seed money contributions may be used only for the purpose of making an expenditure authorized by law.

(g) A candidate shall return to the State Board all qualifying contributions, seed money, and personal contributions, including in-kind contributions, that exceed the limits prescribed by this Section within 48 hours after the end of the exploratory period. The State Board shall deposit all contributions returned under this Section into the Fund.

(h) An eligible candidate who accepts a public financing benefit under this Act during the primary election campaign period shall agree to comply with all requirements of this Act throughout the general election campaign period as a precondition to receipt of public financing. An eligible candidate who accepts a public financing benefit during a primary election campaign period may not elect to accept private contributions in violation of this Act during the corresponding general election campaign period.

Section 25. Certification as an eligible candidate for a primary election; distributions of funds.

(a) The State Board shall certify a candidate complying with the requirements of Section 20 as an eligible candidate as soon as possible. The State Board shall only certify a candidate who is running unopposed or will run in a clean judicial race. The State Board shall not certify a candidate as an eligible candidate if the candidate is running against a candidate who does not receive a public financing benefit under this Act. An eligible candidate certified under this Act shall comply with all requirements of this Act after certification and throughout the primary and general election periods and failure to do so is a violation of this Act.

(b) After certification, an eligible candidate shall limit the candidate's campaign expenditures and obligations, including outstanding obligations, to qualifying contributions, seed money contributions, revenues distributed to the candidate from the Fund, and interest earned on moneys in the Fund, and the candidate may not accept any other contributions unless specifically authorized by the State Board.

(c) All revenues distributed to an eligible candidate from the Fund shall be used for campaign-related purposes. The candidate, the treasurer, the candidate's political committee, or any agent of the candidate and committee shall only use these revenues for campaign-related purposes. The State Board shall publish guidelines outlining permissible campaign-related expenditures.

(d) The State Board shall distribute to eligible candidates revenues from the Fund in amounts as follows:

(1) for a primary election in the First Judicial District, $25,000; and

(2) for a primary election in all judicial districts except the First Judicial District, $15,000.

(e) The State Board shall distribute to each eligible candidate at the general primary election a line of credit for public financing promptly after the candidate demonstrates the candidate's eligibility but later than 5 days after the end of the public financing qualifying period. However, no candidate may use a line of credit distributed under this subsection until the beginning of the primary election campaign period.

Section 30. Certification as an eligible candidate for a general election; distributions of funds.

(a) Before a candidate may be certified as eligible for receipt of public financing for the general election, the candidate shall apply to the State Board and file a sworn statement that the candidate has fulfilled all of the requirements of this Act during the primary election campaign period, has won the nomination in the general primary, and will comply with the requirements of this Act during the general election campaign period. The application shall be filed no later than the 7th day after the date of the general primary election.

(b) The State Board shall certify a candidate as an eligible candidate for receipt of public financing for a general election campaign period if the candidate complies with subsection (a) and the candidate was an eligible candidate during the primary election campaign period. The State Board shall only certify a candidate who is running unopposed or will run in a clean judicial race. The State Board shall not certify a candidate as an eligible candidate if the candidate is running against a candidate who does not receive a public financing benefit under this Act.

(c) If more than one candidate files an application for the general election, the State Board shall accept applications from all candidates who comply with subsection (a), but the State Board shall postpone the declaration of eligibility for the general election until after the general primary results are certified. After the results have been certified, if the nominee filed an application under subsection (a), the State Board shall declare that candidate eligible for the general election.

(d) The State Board shall distribute to each eligible candidate in the general election a line of credit for public financing not later than the earlier of (i) 48 hours after the official canvass and proclamation under Section 22-7 of the Election Code or (ii) 21 days after the date of the general primary election. No candidate may receive a line of credit until all candidates for judicial office who apply and qualify for a public financing benefit have been certified as eligible candidates.

(e) The State Board shall distribute to eligible candidates revenues from the Fund in amounts in the following manner:

(1) for a candidate for the office of Judge of the Supreme Court during a general election, $525,000; and

(2) for a candidate for the office of Judge of the Appellate Court during a general election, $175,000.

(f) Beginning on April 1, 2027 and every 2 years thereafter, the State Board shall modify the public financing benefits provided for in subsection (e) to adjust for the change in the Consumer Price Index, All Items, U. S. City Average, published by the United States Department of Labor for the preceding 2-year period ending on December 31.

Section 35. Requirements for eligible candidates.

(a) An eligible candidate may not accept private contributions other than seed money contributions and qualifying contributions. An eligible candidate may only accept one qualifying contribution from each contributor.

(b) In addition to reports required to be filed under the Election Code, a candidate who receives a public financing benefit shall furnish complete financial records, including records of seed money contributions, qualifying contributions, and expenditures on the last day of each month.

(c) In addition to adhering to requirements imposed under the Election Code, a candidate who receives a public financing benefit shall maintain records of all contributions of at least $5, including seed money contributions and qualifying contributions. These records shall contain the full name of the contributor and the contributor's full home address.

(d) The failure to record or provide the information specified in subsection (c) disqualifies a contribution from counting as a qualifying contribution.

(e) No eligible candidate and no person acting on an eligible candidate's behalf may accept any contribution that is not recorded in accordance with subsection (c) in a candidate's campaign account.

(f) No eligible candidate may accept more than $1,000 in cash from any contributor.

(g) Notwithstanding any other provision of law, eligible candidates shall report all campaign expenditures, obligations, and related activities to the State Board according to procedures developed by the State Board.

(h) The eligible candidate or the eligible candidate's treasurer shall obtain and keep:

(1) bank or other account statements for the campaign account covering the duration of the campaign;

(2) a vendor invoice stating the particular goods or services purchased for every expenditure of $50 or more; and

(3) a record proving that a vendor received payment for every expenditure of $50 or more in the form of a cancelled check, receipt from the vendor, or bank or credit card statement identifying the vendor as the payee.

(i) The eligible candidate or the eligible candidate's treasurer shall preserve the records for 2 years following the candidate's final campaign finance report for the election cycle. The candidate and treasurer shall submit photocopies of the records to the State Board upon its request.

Section 40. Unspent funds. Upon the filing of a final report for any primary election in which the eligible candidate was defeated and for all general elections, an eligible candidate shall return all unspent revenues from the Fund to the State Board. In developing procedures for the return of unspent revenues from the Fund, the State Board shall use existing campaign reporting procedures whenever practicable. The State Board shall ensure timely public access to campaign finance data and may use electronic means of reporting and storing information.

Section 45. Illinois Judicial Election Democracy Trust Fund.

(a) All moneys collected under Sections 40, 45, and 70 shall be deposited into the Illinois Judicial Election Democracy Trust Fund and may be used by the State Board for the purposes of this Act. The State Treasurer, in consultation with the State Board, shall contract with a debit card issuer to permit eligible candidates and their agents to draw upon moneys appropriated from the Fund through an account with the card issuer.

(b) Upon a determination of a candidate's eligibility for a public financing benefit under this Act, the State Treasurer shall issue to the eligible candidate a debit card, known as the fair election debit card, entitling the candidate and agents of the candidate designated by the candidate to draw money from an account to make expenditures on behalf of the candidate.

(c) No eligible candidate or agent of an eligible candidate may make any campaign expenditure by any means other than through the use of the fair election debit card after being certified as an eligible candidate. No candidate or agent may use a fair election debit card to obtain cash, except that cash amounts of $100 or less may be drawn on the fair election debit card and used to make expenditures of no more than $25 each. A candidate shall maintain records of all expenditures and shall report the expenditures to the State Board in accordance with Section 35.

(d) The State Board may draw upon moneys in the Fund to support the administration of the program. These moneys may be used only to pay costs to the State Board that are directly associated with the administration of the program, including, but not limited to, ensuring compliance with this Act and promoting the income tax checkoff. These administrative reimbursements shall be limited to 1% of the Fund balance in fiscal years when there is no eligible seat on the ballot or 5% of the Fund balance in fiscal years when there is an eligible seat on either a primary or general election ballot.

Section 50. Challenges to certification of an eligible candidate.

(a) A candidate who has been denied certification as an eligible candidate, the opponent of a candidate who has been granted certification as an eligible candidate, or other interested persons may challenge a certification decision made by the State Board as follows:

(1) A challenger may appeal to the full State Board within 7 days after the certification decision. The appeal shall be in writing and shall set forth the reasons for the appeal.

(2) Within 5 days after an appeal is properly made and after notice is given to the challenger and any opponent, the State Board shall hold a hearing. The appellant has the burden of providing evidence to demonstrate that the State Board decision was improper. The State Board shall rule on the appeal within 3 days after the completion of the hearing.

(3) A challenger may appeal the decision of the State Board in paragraph (2) by commencing an action in circuit court.

(4) A candidate whose certification by the State Board as an eligible candidate is revoked on appeal shall return to the State Board any unspent revenues distributed from the Fund.

(b) If the State Board or court finds that an appeal was made frivolously or to cause delay or hardship, the State Board or court may require the moving party to pay costs of the State Board, court, and opposing parties, if any.

Section 55. Rulemaking. The State Board shall adopt rules to ensure effective administration of this Act. These rules shall include, but shall not be limited to, rules concerning procedures for obtaining qualifying contributions, certification as an eligible candidate, circumstances involving special elections, vacancies, recounts, withdrawals or replacements, collection of revenues for the Fund, distribution of Fund revenue to certified candidates, return of unspent Fund disbursements, and compliance with this Act.

Section 60. Violations.

(a) In addition to any other penalties that may be applicable, a person who violates any provision of this Act or rules adopted by the State Board under Section 55 is subject to a fine not to exceed $10,000 per violation, payable to the Fund. In addition to any fine, for good cause shown, a candidate, treasurer, consultant, or other agent of the candidate or the committee authorized by the candidate found in violation of this Act or rules of the State Board may be required to return to the Fund all amounts distributed to the candidate from the Fund or any funds not used for campaign-related purposes. If the State Board makes a determination that a violation of this Act or rules of the State Board has occurred, the State Board shall assess a fine or transmit the finding to the Attorney General for prosecution. Fines paid under this Section shall be deposited into the Fund. In determining whether or not a candidate is in violation of the expenditure limits of this Act, the State Board may consider as a mitigating factor any circumstances out of the candidate's control.

(b) A person who willfully or knowingly violates this Act or rules adopted under this Act or who willfully or knowingly makes a false statement in any report required by this Act commits a business offense punishable by a fine of at least $1,001 and not more than $5,000 and, if certified as an eligible candidate, shall return to the Fund all amounts distributed to the candidate.

Section 65. Study report. By January 30, 2025 and every 4 years thereafter, the State Board shall prepare and submit to the General Assembly a report documenting, evaluating, and making recommendations relating to the administration, implementation, and enforcement of this Act and the Illinois Judicial Election Democracy Trust Fund.

Section 70. 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 this Act that can be given effect without the invalid provision.

Section 900. The State Finance Act is amended by adding Section 5.1015 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Illinois Judicial Election Democracy Trust Fund.

Section 905. The Illinois Income Tax Act is amended by changing Section 509 and by adding Section 506.7 as follows:

(35 ILCS 5/506.7 new)

Sec. 506.7. Designation of tax to the Illinois Judicial Election Democracy Trust Fund. The Department shall print on its standard individual income tax form a provision indicating that if the taxpayer wishes to contribute to the Illinois Judicial Election Democracy Trust Fund, as authorized by this amendatory Act of the 103rd General Assembly, he or she may do so by stating the amount of the contribution, not less than $3, on the return and that the contribution will reduce the taxpayer's refund or increase the amount of payment to accompany the return. Failure to remit any amount of the increased payment shall reduce the contribution accordingly. This Section does not apply to any amended return. This tax checkoff applies to income tax forms for taxable years 2025 and thereafter.

(35 ILCS 5/509) (from Ch. 120, par. 5-509)

Sec. 509. Tax checkoff explanations.

(a) All individual income tax return forms shall contain appropriate explanations and spaces to enable the taxpayers to designate contributions to the funds to which contributions may be made under this Article 5.

(b) Each form shall contain a statement that the contributions will reduce the taxpayer's refund or increase the amount of payment to accompany the return. Failure to remit any amount of increased payment shall reduce the contribution accordingly.

(c) If, on October 1 of any year, the total contributions to any one of the funds made under this Article 5, except the Illinois Judicial Election Democracy Trust Fund, do not equal $100,000 or more, the explanations and spaces for designating contributions to the fund shall be removed from the individual income tax return forms for the following and all subsequent years and all subsequent contributions to the fund shall be refunded to the taxpayer. This contribution requirement does not apply to the Diabetes Research Checkoff Fund checkoff contained in Section 507GG of this Act.

(d) Notwithstanding any other provision of law, the Department shall include the Hunger Relief Fund checkoff established under Section 507SS on the individual income tax form for the taxable year beginning on January 1, 2012. If, on October 1, 2013, or on October 1 of any subsequent year, the total contributions to the Hunger Relief Fund checkoff do not equal $100,000 or more, the explanations and spaces for designating contributions to the fund shall be removed from the individual income tax return forms for the following and all subsequent years and all subsequent contributions to the fund shall be refunded to the taxpayer.

(Source: P.A. 96-328, eff. 8-11-09; 97-1117, eff. 8-27-12.)

Section 999. Effective date. This Act takes effect January 1, 2025.".