SB1565 95TH GENERAL ASSEMBLY

LRB095 11007 JAM 31317 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1565

Introduced 2/9/2007, by Sen. Bill Brady

SYNOPSIS AS INTRODUCED:

10 ILCS 5/Art. 9A heading new
10 ILCS 5/9A-5 new
10 ILCS 5/9A-15 new
10 ILCS 5/9A-17 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

Amends the Election Code. Establishes limits on campaign contributions and expenditures. Requires that each political committee subject to the limits donate moneys received before or on the bill's effective date to one or more charities, except that obligations for goods and services received before the bill's effective date may be paid for 15 days after the 2008 general election; those moneys not donated escheat to and become the property of the State and shall be deposited into the General Revenue Fund. Effective November 5, 2008.

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 adding Article heading 9A and Sections 9A-5, 9A-15, 9A-17, 9A-20, 9A-25, 9A-30, and 9A-35 as follows:

(10 ILCS 5/Art. 9A heading new)

ARTICLE 9A.

CLEAN ELECTIONS FOR CLEAN GOVERNMENT

(10 ILCS 5/9A-5 new)

Sec. 9A-5. Definitions. As used in this Article:

(1) "Election" means:

(A) "Election", "regular election", "special election", and "general election" as those terms are defined in Section 1-3, but only as applied to elections for executive branch constitutional officers and members of the General Assembly.

(B) A convention or caucus of a political party that has authority to nominate a candidate.

(2) "Candidate" means any person who seeks nomination for election, election to, or retention in public office as an executive branch constitutional officer or as a member of the General Assembly, whether or not the person is elected. A person seeks nomination for election, election, or retention if he or she (i) takes the action necessary under the laws of this State to attempt to qualify for nomination for election to, election to, or retention in public office as an executive branch constitutional officer or as a member of the General Assembly or (ii) receives contributions or makes expenditures, or gives consent for any other person to receive contributions or make expenditures with a view to bringing about his or her nomination for election to, election to, or retention in public office as an executive branch constitutional officer or as a member of the General Assembly.

(3) "Political committee" means any of the following:

(A) Any committee, club, association, or other group of persons that receives contributions aggregating in excess of $1,000 during a calendar year or that makes expenditures aggregating in excess of $1,000 during a calendar year.

(B) Any separate segregated fund established under the provisions of this Article by a labor union or corporation.

(C) Any local committee of a political party that receives contributions aggregating in excess of $5,000 during a calendar year, makes payments exempted from the definition of contribution or expenditure aggregating in excess of $5,000 during a calendar year, makes contributions aggregating in excess of $1,000 during a calendar year, or makes expenditures aggregating in excess of $1,000 during a calendar year.

(4) "Principal campaign committee" means a political committee designated and authorized by a candidate under Section 9A-15.

(5) "Authorized committee" means the principal campaign committee or any other political committee authorized by a candidate under Section 9A-15 to receive contributions or make expenditures on behalf of the candidate.

(6) "Connected organization" means any organization that is not a political committee but that directly or indirectly establishes, administers, or financially supports a political committee.

(7) Contribution.

(A) "Contribution" includes:

(i) Any gift, subscription, loan, advance, or deposit of money or anything of value made by any person for the purpose of influencing any election for executive branch constitutional office.

(ii) The payment by any person of compensation for the personal services of another person that are rendered to a political committee without charge for any purpose.

(iii) A transfer of funds between political committees for any purpose.

(B) "Contribution" does not include:

(i) The value of services provided without compensation by any individual who volunteers on behalf of a candidate or political committee.

(ii) The use of real or personal property, including a church or community room used on a regular basis by members of a community for noncommercial purposes, and the cost of invitations, food, and beverages, voluntarily provided by an individual to any candidate or any political committee of a political party in rendering voluntary personal services on the individual's residential premises or in the church or community room for candidate-related or political party-related activities, to the extent that the cumulative value of the invitations, food, and beverages provided by the individual on behalf of any single candidate does not exceed $2,000 with respect to any single election, and on behalf of all political committees of a political party does not exceed $5,000 in any calendar year.

(iii) The sale of any food or beverage by a vendor for use in any candidate's campaign or for use by or on behalf of any political committee of a political party at a charge less than the normal comparable charge, if the charge is at least equal to the cost of the food or beverage to the vendor, to the extent that the cumulative value of the activity by the vendor on behalf of any single candidate does not exceed $2,000 with respect to any single election, and on behalf of all political committees of a political party does not exceed $5,000 in any calendar year.

(iv) Any unreimbursed payment for travel expenses made by any individual volunteering personal services on behalf of any candidate or any political committee of a political party.

(8) Expenditure.

(A) "Expenditure" includes:

(i) Any purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value made by any person for the purpose of influencing any election of a State executive branch constitutional officer or member of the General Assembly.

(ii) A written contract, promise, or agreement to make an expenditure.

(B) "Expenditure" does not include:

(i) Any news story, commentary, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, or other periodical publication, unless the facilities are owned or controlled by any political party, political committee, or candidate.

(ii) Nonpartisan activity designed to encourage individuals to vote or to register to vote.

(iii) 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.

(iv) 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 the charge for use in a candidate's campaign is at least equal to the cost of the food or beverage to the vendor.

(9) "Board" means the Illinois State Board of Elections.

(10) "Person" includes an individual, trust, partnership, committee, association, corporation, labor organization, or any other organization or group of persons.

(11) "Identification" means:

(A) In the case of any individual, the name, the mailing address, and the occupation of the individual, as well as the name of his or her employer.

(B) In the case of any other person, the full name and address of the person.

(12) "State committee" means the organization that, by virtue of the bylaws of a political party, is responsible for the day-to-day operation of the political party at the State level, as determined by the Board.

(13) "Political party" means an association, committee, or organization that nominates a candidate for election to any public office whose name appears on the election ballot as the candidate of that association, committee, or organization.

(14) "Independent expenditure" means an expenditure by a person:

(A) Expressly advocating the election or defeat of a clearly identified candidate; and

(B) That is not made in concert or cooperation with or at the request or suggestion of the candidate, the candidate's authorized political committee, agents, a political party committee, or agents thereof.

(15) "Clearly identified" means that:

(A) The name of the candidate involved appears;

(B) A photograph or drawing of the candidate appears; or

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

(16) "Election cycle" means the period beginning on the day after the date of the most recent election for the specific office or seat that a candidate is seeking and ending on the date of the next election for that office or seat. For purposes of this paragraph, a general primary election and a general election shall be considered to be separate elections.

(17) "Personal funds" means an amount that is derived from:

(A) Any asset that, under applicable State law, at the time the individual became a candidate, the candidate had legal right of access to or control over, and with respect to which the candidate had:

(i) Legal and rightful title; or

(ii) An equitable interest.

(B) Income received during the current election cycle by the candidate, including:

(i) A salary and other earned income from bona fide employment.

(ii) Dividends and proceeds from the sale of the candidate's stocks or other investments.

(iii) Bequests to the candidate.

(iv) Income from trusts established before the beginning of the election cycle.

(v) Income from trusts established by bequest after the beginning of the election cycle of which the candidate is the beneficiary.

(vi) Gifts of a personal nature that had been customarily received by the candidate prior to the beginning of the election cycle.

(vii) Proceeds from lotteries and similar legal games of chance.

(C) A portion of assets that are jointly owned by the candidate and the candidate's spouse equal to the candidate's share of the asset under the instrument of conveyance or ownership, but if no specific share is indicated by an instrument of conveyance or ownership, the value of one-half of the property.

(10 ILCS 5/9A-15 new)

Sec. 9A-15. Limitations on contributions and expenditures.

(a) Limits.

(1) No political committee, multicandidate committee, or PAC may engage in a joint fundraiser.

(1.5) Except as provided in subsection (c), no person other than a multicandidate political committee shall make contributions:

(A) To any candidate and his or her authorized political committees with respect to any election for State office that, in the aggregate, exceed $2,000.

(B) To the political committees established and maintained by a State political party, that are not the authorized political committees of any candidate, in any election that, in the aggregate, exceed $5,000.

(C) To any other political committee in any election that, in the aggregate, exceed $5,000.

(2) No multicandidate political committee shall make contributions:

(A) To any candidate and his or her authorized political committees with respect to any election for State office that, in the aggregate, exceed $5,000.

(B) To the political committees established and maintained by a State political party, that are not the authorized political committees of any candidate, in any election, that, in the aggregate, exceed $5,000.

(C) To any other political committee in any election that, in the aggregate, exceed $5,000.

(3) During the period that begins on January 1 of an odd-numbered year and ends on December 31 of the next even-numbered year, no individual may make contributions aggregating more than $40,000, in the case of contributions to candidates and the authorized committees of candidates.

(4) For purposes of paragraph (2), the term "multicandidate political committee" means a political committee that has been registered for a period of not less than 6 months, that has received contributions from more than 50 persons, and that has made contributions to 5 or more candidates for public office. The State political parties shall be considered "multicandidate political committees" for the purposes of paragraph (2).

(5) For purposes of the limitations provided by paragraph (1) and paragraph (2), all contributions made by political committees established, financed, maintained, or controlled by any corporation, labor organization, or any other person, including any parent, subsidiary, branch, division, department, or local unit of the corporation, labor organization, or any other person, or by any group of such persons, shall be considered to have been made by a single political committee.

In any case in which a corporation and any of its subsidiaries, branches, divisions, departments, or local units, or a labor organization and any of its subsidiaries, branches, divisions, departments, or local units establish, finance, maintain, or control more than one separate segregated fund, all the separate segregated funds shall be treated as a single separate segregated fund for purposes of the limitations provided by paragraph (1) and paragraph (2).

(6) For the purposes of the limitations provided by paragraph (1) and paragraph (2), a candidate's authorized political committee and any committee directly or indirectly established, financed, maintained, or controlled by that candidate shall be considered to be a single political committee.

(7) The limitations on contributions to a candidate imposed by paragraphs (1) and (2) of this subsection shall apply separately with respect to each election.

(8) For purposes of this subsection:

(A) Contributions to a named candidate made to any political committee authorized by the candidate to accept contributions on his or her behalf shall be considered to be contributions made to the candidate.

(B) Expenditures.

(i) Expenditures made by any person in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, his or her authorized political committees, or their agents, shall be considered to be a contribution to the candidate.

(ii) Expenditures made by any person (other than a candidate or candidate's authorized committee) in cooperation, consultation, or concert with, or at the request or suggestion of, a national, State, or local committee of a political party, shall be considered to be contributions made to the party committee.

(iii) 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 campaign committees, or their authorized agents shall be considered to be an expenditure for purposes of this paragraph.

(C) If any person makes or contracts to make any disbursement for any electioneering communication and if the disbursement is coordinated with a candidate or an authorized committee of the candidate, a Federal, State, or local political party or committee thereof, or an agent or official of the candidate, party, or committee, then the disbursement or contracting shall be treated as a contribution to the candidate supported by the electioneering communication or that candidate's party and as an expenditure by that candidate or that candidate's party.

(9) For purposes of the limitations imposed by this Section, all contributions made by a person, either directly or indirectly, on behalf of a particular candidate, including contributions that are in any way earmarked or otherwise directed through an intermediary or conduit to the candidate, shall be treated as contributions from the person to the candidate. The intermediary or conduit shall report the original source and the intended recipient of the contribution to the Board and to the intended recipient.

(b) 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 imposed on contributions and expenditures under this Section.

(c) Personal funds.

(1) Increase.

(A) Subject to paragraph (2), if the opposition personal funds amount with respect to a candidate for election to executive branch constitutional office or the General Assembly exceeds the threshold amount, the limit under subsection (a)(1)(A) (in this subsection referred to as the "applicable limit") with respect to that candidate shall be the increased limit.

(B) Threshold amount.

(i) In this subsection, the threshold amount with respect to an election cycle of a candidate described in subparagraph (A) is an amount equal to the sum of:

(I) $150,000; and

(II) $0.04 multiplied by the voting age population.

(ii) In this subparagraph, the term "voting age population" means that certified under 2 USCS 441a Section (e) for the State of Illinois and published in the Federal Register.

(C) Except as provided in clause (ii), for purposes of subparagraph (A), if the opposition personal funds amount is over:

(i) 2 times the threshold amount, but not over 4 times that amount, then the increased limit shall be 3 times the applicable limit.

(ii) 4 times the threshold amount, but not over 10 times that amount, then the increased limit shall be 6 times the applicable limit.

(iii) 10 times the threshold amount, then the increased limit shall be 6 times the applicable limit.

(D) The opposition personal funds amount is an amount equal to the excess (if any) of:

(i) The greatest aggregate amount of expenditures from personal funds that an opposing candidate in the same election makes; over

(ii) The aggregate amount of expenditures from personal funds made by the candidate with respect to the election.

(E) Candidate's campaign funds.

(i) For purposes of determining the aggregate amount of expenditures from personal funds under subparagraph (D)(ii), the amount shall include the gross receipts advantage of the candidate's authorized committee.

(ii) For purposes of clause (i), the term "gross receipts advantage" means the excess, if any, of:

(I) The aggregate amount of 50% of gross receipts of a candidate's authorized committee during any election cycle (not including contributions from personal funds of the candidate) that may be expended in connection with the election, as determined on June 30 and December 31 of the year preceding the year in which a general election is held, over

(II) The aggregate amount of 50% of gross receipts of the opposing candidate's authorized committee during any election cycle (not including contributions from personal funds of the candidate) that may be expended in connection with the election, as determined on June 30 and December 31 of the year preceding the year in which a general election is held.

(2) Time to accept contributions under increased limit.

(A) Subject to subparagraph (B), a candidate and the candidate's authorized committee shall not accept any contribution, and a party committee shall not make any expenditure, under the increased limit under paragraph (1):

(i) Until the candidate has received notification of the opposition personal funds amount; and

(ii) To the extent that the contribution, when added to the aggregate amount of contributions previously accepted and party expenditures previously made under the increased limits under this subsection for the election cycle, exceeds 110% of the opposition personal funds amount.

(B) A candidate and a candidate's authorized committee shall not accept any contribution and a party shall not make any expenditure under the increased limit after the date on which an opposing candidate ceases to be a candidate to the extent that the amount of the increased limit is attributable to such an opposing candidate.

(3) Disposal of excess contributions.

(A) The aggregate amount of contributions accepted by a candidate or a candidate's authorized committee under the increased limit under paragraph (1) and not otherwise expended in connection with the election with respect to which the contributions relate shall, not later than 50 days after the date of the election, be used in the manner described in subparagraph (B).

(B) A candidate or a candidate's authorized committee shall return the excess contribution to the person who made the contribution.

(d) Any candidate who incurs personal loans made after the effective date of this amendatory Act of the 95th General Assembly in connection with the candidate's campaign for election shall not repay (directly or indirectly), to the extent the loans exceed $250,000, the loans from any contributions made to the candidate or any authorized committee of the candidate after the date of the election.

(e) Each July 1, the dollar amounts established in this Section shall be adjusted for inflation as determined by the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor and rounded to the nearest $100, except that each adjustment may not exceed 5% of the dollar amount adjusted.

(10 ILCS 5/9A-17 new)

Sec. 9A-17. Transfer prohibition. Notwithstanding any other law to the contrary, no candidate or political committee shall make any transfer of funds between that candidate or political committee and any other candidate or political committee whatsoever.

(10 ILCS 5/9A-20 new)

Sec. 9A-20. Contributions or expenditures by corporations or labor organizations.

(a) It is unlawful for any corporation or labor organization to make a contribution or expenditure in connection with any election to any executive branch constitutional office or to any seat in the General Assembly or in connection with any primary election or political convention or caucus held to select candidates for any executive branch constitutional office or any seat in the General Assembly. It is unlawful for any candidate, political committee, or other person knowingly to accept or receive any contribution prohibited by this Section. It is unlawful any officer or any director of any corporation or any officer of any labor organization to consent to any contribution or expenditure by the corporation or labor organization, as the case may be, prohibited by this Section.

(b) Definitions and additional prohibitions.

(1) For the purposes of this Section, 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.

(2) For purposes of this Section, the term "contribution or expenditure" includes a contribution or expenditure as those terms are defined in Section 9A-10 and also includes any direct or indirect payment, distribution, loan, advance, deposit, or gift of money, any services, or anything of value (except a loan of money by a national or State bank made in accordance with the applicable banking laws and regulations and in the ordinary course of business) to any candidate, campaign committee, or political party or organization in connection with any election to any of the offices referred to in this Section or for any applicable electioneering communication. The term shall not include:

(A) Communications by a corporation to its stockholders and executive or administrative personnel and their families or by a labor organization to its members and their families on any subject.

(B) Nonpartisan registration and get-out-the-vote campaigns by a corporation aimed at its stockholders and executive or administrative personnel and their families or by a labor organization aimed at its members and their families.

(C) The establishment, administration, and solicitation of contributions to a separate segregated fund to be utilized for political purposes by a corporation, labor organization, membership organization, cooperative, or corporation without capital stock.

(3) It is unlawful:

(A) For a fund described in paragraph (2)(C) to make a contribution or expenditure by utilizing money or anything of value secured by physical force, job discrimination, or financial reprisals; by the threat of force, job discrimination, or financial reprisal; by dues, fees, or other moneys required as a condition of membership in a labor organization or as a condition of employment; or by moneys obtained in any commercial transaction.

(B) For any person soliciting an employee for a contribution to a fund described in paragraph (2)(C) to fail to inform the employee of the political purposes of the fund at the time of solicitation.

(C) For any person soliciting an employee for a contribution to a fund described in paragraph (2)(C) to fail to inform the employee, at the time of solicitation, of his or her right to refuse to contribute without any reprisal.

(4) Solicitations.

(A) Except as provided in subparagraphs (B), (C), and (D), it is unlawful:

(i) For a corporation, or a separate segregated fund established by a corporation, to solicit contributions to the fund from any person other than its stockholders and their families and its executive or administrative personnel and their families.

(ii) For a labor organization, or a separate segregated fund established by a labor organization, to solicit contributions to the fund from any person other than its members and their families.

(B) It is not unlawful under this Section for a corporation, a labor organization, or a separate segregated fund established by a corporation or labor organization to make 2 written solicitations for contributions during the calendar year from any stockholder, executive or administrative personnel, or employee of a corporation or the families of those persons. A solicitation under this subparagraph may be made only by mail addressed to stockholders, executive or administrative personnel, or employees at their residence and shall be so designed that the corporation, labor organization, or separate segregated fund conducting the solicitation cannot determine who makes a contribution of $50 or less as a result of the solicitation and who does not make such a contribution.

(C) This paragraph shall not prevent a membership organization, cooperative, or corporation without capital stock, or a separate segregated fund established by a membership organization, cooperative, or corporation without capital stock, from soliciting contributions to the fund from members of the organization, cooperative, or corporation without capital stock.

(5) Notwithstanding any other law, any method of soliciting voluntary contributions or of facilitating the making of voluntary contributions to a separate segregated fund established by a corporation, permitted by law to corporations with regard to stockholders and executive or administrative personnel, is also permitted to labor organizations with regard to their members.

(6) Any corporation, including its subsidiaries, branches, divisions, and affiliates, that utilizes a method of soliciting voluntary contributions or facilitating the making of voluntary contributions shall make available that method, on written request and at a cost sufficient only to reimburse the corporation for the expenses incurred thereby, to a labor organization representing any members working for the corporation or its subsidiaries, branches, divisions, and affiliates.

(7) For purposes of this Section, the term "executive or administrative personnel" means individuals employed by a corporation who are paid on a salary, rather than hourly, basis and who have policymaking, managerial, professional, or supervisory responsibilities.

(c) Electioneering communications.

(1) For purposes of this Section, the term "applicable electioneering communication" means an electioneering communication, as defined in Section 9-1.14, that is made by any entity described in subsection (a) of this Section or by any other person using funds donated by an entity described in subsection (a) of this Section.

(2) Notwithstanding paragraph (A), the term "applicable electioneering communication" does not include a communication by an unincorporated Section 501(c)(4) organization or a political organization (as defined in Section 527(e)(1) of the Internal Revenue Code of 1986 [26 USCS § 527(e)(1)]) if the communication is paid for exclusively by funds provided directly by individuals who are United States citizens or nationals or are lawfully admitted for permanent residence (as defined in Section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(20))). For purposes of this paragraph, the term "provided directly by individuals" does not include funds the source of which is an entity described in subsection (a) of this Section.

(3) Source of communications.

(A) An electioneering communication shall be treated as made by an entity described in subsection (a) if an entity described in subsection (a) directly or indirectly disburses any amount for any of the costs of the communication.

(B) A Section 501(c)(4) organization that derives amounts from business activities or receives funds from any entity described in subsection (a) shall be considered to have paid for any communication out of those amounts unless the organization paid for the communication out of a segregated account.

(4) For purposes of this subsection:

(A) The term "Section 501(c)(4) organization" means:

(i) An organization described in Section 501(c)(4) of the Internal Revenue Code of 1986 [26 USCS § 501(c)(4)] and exempt from taxation under Section 501(a) of that Code [26 USCS § 501(a)]; or

(ii) An organization that has submitted an application to the Internal Revenue Service for determination of its status as an organization described in clause (i).

(B) A person shall be treated as having made a disbursement if the person has executed a contract to make the disbursement.

(5) Nothing in this subsection shall be construed to authorize an organization exempt from taxation under Section 501(a) of the Internal Revenue Code of 1986 [26 USCS § 501(a)] to carry out any activity that is prohibited under that Code.

(10 ILCS 5/9A-25 new)

Sec. 9A-25. Prohibition of contributions in name of another. No person shall make a contribution in the name of another person or knowingly permit his or her name to be used to effect such a contribution. No person shall knowingly accept a contribution made by one person in the name of another person.

(10 ILCS 5/9A-30 new)

Sec. 9A-30. Complaints. The Board may receive complaints from any entity regulated under this Article, alleging with specificity on the basis of facts known to that entity, that a violation of this Article has occurred. The Board may bring complaints and investigations on its own initiative when the Board has a reasonable basis to believe that a violation of this Article has occurred. The Board shall have the authority to promulgate procedural rules governing the filing and hearing of complaints under this Section.

(10 ILCS 5/9A-35 new)

Sec. 9A-35. 2008 disposition of committee moneys. On and after the effective date of this amendatory Act of the 95th General Assembly, a political committee may not expend, transfer, or otherwise dispose of moneys received by that committee from any source before or on that effective date, except as provided in this Section. For a period of 15 days after the day of the 2008 general election, each political committee may use moneys received before or on the effective date of this amendatory Act of the 95th General Assembly to pay bills for or otherwise discharge or satisfy obligations incurred for goods or services received by the committee before the effective date of this amendatory Act of the 95th General Assembly. Within 30 days after the effective date of this amendatory Act of the 95th General Assembly, each political committee must donate all moneys possessed in any way by the committee that the committee received from any source before or on the effective date of this amendatory Act of the 95th General Assembly to one or more charitable organizations approved by the State Board of Elections. Any moneys so described not donated as provided in this Section shall escheat to and become the property of the State and shall be deposited into the General Revenue Fund.

Section 99. Effective date. This Act takes effect November 5, 2008.