HB0887 96TH GENERAL ASSEMBLY

LRB096 03996 JAM 14032 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0887

Introduced 2/10/2009, by Rep. Mike Boland

SYNOPSIS AS INTRODUCED:

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
30 ILCS 105/5.719 new
35 ILCS 5/506.7 new
35 ILCS 5/509	from Ch. 120, par. 5-509

Amends the Election Code, the State Finance Act, and the Illinois Income Tax Act. Establishes a voluntary system of public financing of campaigns for the offices of judges of the Illinois Supreme and Appellate Courts, administered by the State Board of Elections. Specifies limits on campaign contributions and expenditures with respect to all candidates for those offices. Creates the necessary fund in the State treasury and the income tax checkoff for the public financing system. Effective immediately.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

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 the heading of Article 9A and Sections 9A-5, 9A-10, 9A-15, 9A-20, 9A-25, 9A-30, 9A-35, 9A-40, 9A-45, 9A-50, and 9A-55 as follows:

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

ARTICLE 9A. PUBLIC CAMPAIGN FINANCING

(10 ILCS 5/9A-5 new)

Sec. 9A-5. Purpose of the Illinois Public Campaign Financing Fund. The purpose of this Article is to ensure the fairness of democratic elections in Illinois and to protect the constitutional rights of voters and candidates from the detrimental effects of increasingly large amounts of money being raised and spent to influence the outcome of elections, those effects being especially problematic in elections of the judiciary, as impartiality is uniquely important to the integrity and credibility of the courts. Accordingly, this Article establishes the Illinois Public Campaign Financing Fund as an alternative source of campaign financing for candidates who demonstrate public support and voluntarily accept strict fund-raising and spending limits. This Article is available to candidates for Judge of the Illinois Supreme Court and for Judge of the Illinois Appellate Court in elections to be held in 2008 and thereafter.

(10 ILCS 5/9A-10 new)

Sec. 9A-10. Definitions. As used in this Article:

"Board" means the State Board of Elections.

"Candidate" means an individual who becomes a candidate as described in Section 9-1.3 for the office of Judge of the Illinois Supreme or Judge of the Illinois Appellate Court. The term includes a political committee authorized by the candidate for that candidate's election.

"Certified candidate" means a candidate running for office who chooses to receive campaign funds from the Fund and who is certified under Section 9A-20.

"Contested primary" and "contested general election" mean an election in which there are more candidates than the number to be elected.

"Contribution" means a contribution as defined in Section 9-1.4. A distribution from the Fund pursuant to this Article is not a "contribution".

"Expenditure" means an expenditure as defined in Section 9-1.5.

"Fund" means the Illinois Public Campaign Financing Fund established in this Article.

"Maximum qualifying contributions" means an amount of qualifying contributions equal to 60% of the annual compensation for the office.

"Minimum qualifying contributions" means an amount of qualifying contributions equal to 20% of the annual compensation for the office.

"Nonparticipating candidate" means a candidate running for office who is not seeking to be certified under Section 9A-20).

"Office" means the office of Judge of the Illinois Appellate Court or Judge of the Illinois Supreme Court.

"Participating candidate" means a candidate for office who has filed a declaration of intent to participate under Section 9A-20.

"Political committee" means a political committee as defined in Section 9-1..9.

"Qualifying contribution" means a contribution of not less than $10 and not more than $500 in the form of a check or money order to the candidate or the candidate's committee that is (i) made by any registered voter in this State and (ii) made during the qualifying period and obtained with the approval of the candidate or candidate's committee.

"Qualifying period" means the period beginning September 1 in the year before the relevant election and ending on the day of the primary before the relevant election.

"Trigger for rescue funds" means the dollar amount at which rescue funds are released for certified candidates. In the case of a primary, the trigger equals the maximum qualifying contributions for participating candidates. In the case of a contested general election, the trigger equals the base level of funding available under subsection (b)(4) of Section 9A-25.

(10 ILCS 5/9A-15 new)

Sec. 9A-15. Illinois Public Campaign Financing Fund established; sources of funding.

(a) The Illinois Public Campaign Financing Fund is established as a special fund in the State treasury to finance the election campaigns of certified candidates for office and to pay administrative and enforcement costs of the Board related to this Article. All expenses of administering this Article and personnel and other costs incurred by the Board shall be paid from the Fund and not from the General Revenue Fund. Any interest generated by the Fund is credited to the Fund. The Board shall administer the Fund.

(b) Money received from all the following sources must be deposited into the Fund:

(1) Designations made to the Illinois Public Campaign Financing Fund by individual taxpayers pursuant to the Illinois Income Tax Act.

(2) Any contributions made by attorneys in accordance with Section 9A-55.

(3) Illinois Public Campaign Financing Fund revenues distributed for an election that remain unspent or uncommitted at the time the recipient is no longer a certified candidate in the election.

(4) Money ordered returned to the Illinois Public Campaign Financing Fund in accordance with Section 9A-45.

(5) Voluntary donations made directly to the Illinois Public Campaign Financing Fund. Corporations, other business entities, labor unions, and professional associations may make donations to the Fund.

(c) By October 1, 2009, and every 2 years thereafter, the Board, in conjunction with the Advisory Council for the Illinois Public Campaign Financing Fund, shall prepare and provide to the General Assembly a report documenting, evaluating, and making recommendations relating to the administration, implementation, and enforcement of this Article. In its report, the Board shall set out the funds received to date and the expected needs of the Fund for the next election.

(10 ILCS 5/9A-20 new)

Sec. 9A-20. Requirements for participation; certification of candidates.

(a) Any individual choosing to receive campaign funds from the Fund shall first file with the Board a declaration of intent to participate in this Article as a candidate for a stated office. The declaration of intent shall be filed before or during the qualifying period and before collecting any qualifying contributions. In the declaration, the candidate shall swear or affirm that only one political committee, identified with its treasurer, shall handle all contributions, expenditures, and obligations for the participating candidate and that the candidate will comply with the contribution and expenditure limits set forth in subsection (d) of this Section and all other requirements set forth in this Article or adopted by the Board. Failure to comply is a violation of this Article.

(b) Participating candidates who seek certification to receive campaign funds from the Fund shall first, during the qualifying period, obtain qualifying contributions from at least 175 registered voters in an aggregate sum that at least equals the amount of minimum qualifying contributions described in Section 9A-10 but that does not exceed the amount of maximum qualifying contributions described in Section 9A-10.

No payment, gift, or anything of value shall be given in exchange for a qualifying contribution.

(c) Upon receipt of a submittal of the record of demonstrated support by a participating candidate, the Board shall determine whether or not the candidate has complied with all the following requirements, if they apply to that candidate:

(1) Signed and filed a declaration of intent to participate in this Article.

(2) Submitted a report itemizing the appropriate number of qualifying contributions received from registered voters, which the Board shall verify through a random sample or other means it adopts. The report shall include the county of residence of each registered voter listed.

(3) Qualified to receive votes on the ballot as a candidate for the office.

(4) Otherwise met the requirements for participation in this Article.

The Board shall certify candidates complying with the requirements of this Section as soon as possible and no later than 5 business days after receipt of a satisfactory record of demonstrated support.

(d) The following restrictions shall apply to contributions and expenditures with respect to participating and certified candidates:

(1) Beginning January 1 of the year before the election and before the filing of a declaration of intent, a candidate for office may accept in contributions up to $10,000 from sources and in amounts permitted by this Code and may expend up to $10,000 for any campaign purpose. A candidate who exceeds either of these limits shall be ineligible to file a declaration of intent or receive funds from the Illinois Public Campaign Financing Fund.

(2) From the filing of a declaration of intent through the end of the qualifying period, a candidate shall expend no more than an amount equal to the maximum qualifying contributions for that candidate, not including possible rescue funds or the remaining money raised pursuant to paragraph (1) of this subsection. Contributions a candidate may use to expend to that limit shall be limited to qualifying contributions and personal and family contributions permitted by paragraph (4) of this subsection.

(3) After the qualifying period and through the date of the general election, the candidate shall expend only the funds the candidate receives from the Fund pursuant to subsection (b)(4) of Section 9A-25 plus any funds remaining from the qualifying period and possible rescue funds.

(4) During the qualifying period, the candidate may contribute up to $2,500 of that candidate's own money to the campaign and may accept in contributions $1,000 from each member of that candidate's family consisting of spouse, parent, child, brother, and sister.

(5) A candidate and the candidate's committee shall limit the use of all revenues permitted by this subsection to expenditures for campaign-related purposes only. The Board shall publish guidelines outlining permissible campaign- related expenditures.

(6) Any contribution received by a participating or certified candidate that falls outside that permitted by this subsection shall be returned to the donor as soon as practical. Contributions intentionally made, solicited, or accepted in violation of this Article are subject to civil penalties as specified in Section 9A-45. The funds involved shall be forfeited to the Fund.

(7) A candidate shall return to the Fund any amount distributed for an election that is unspent and uncommitted at the date of the election, or at the time the individual ceases to be a certified candidate, whichever occurs first. For accounting purposes, all qualifying, personal, and family contributions shall be considered spent before revenue from the Fund is spent or committed.

(e) A candidate may revoke, in writing to the Board, a decision to participate in the Illinois Public Campaign Financing Fund at any time before the deadline for the candidate's submission of information for the Voter's Guide under Article 12A. After a timely revocation, that candidate may accept and expend outside the limits of this Article, other than Section 9A-50, without violating this Article. Within 10 days after revocation, a candidate shall return to the Board all money received from the Fund.

(10 ILCS 5/9A-25 new)

Sec. 9A-25. Distribution from the Fund.

(a) The Board shall distribute to a certified candidate revenue from the Fund in an amount determined under subsection (b)(4) of this Section within 5 business days after the certified candidate's name is approved to appear on the ballot in a contested general election, but no earlier than 5 business days after the primary.

(b) By August 1, 2009, and no less frequently than every 2 years thereafter, the Board shall determine the amount of funds, rounded to the nearest $100, to be distributed to certified candidates as follows:

(1) Uncontested primaries. No funds shall be distributed.

(2) Contested primaries. No funds shall be distributed except as provided in Section 9A-35.

(3) Uncontested general elections. No funds shall be distributed.

(4) Contested general elections. Funds shall be distributed to a certified candidate for a position on the Illinois Appellate Court in an amount equal to 125% of the annual compensation for the office of Judge of the Illinois Appellate Court. Funds shall be distributed to a certified candidate for a position on the Illinois Supreme Court in an amount equal to 175% of the annual compensation for the office of Judge of the Illinois Supreme Court.

(c) The Board, in consultation with the State Treasurer and the State Comptroller, shall develop a rapid, reliable method of conveying funds to certified candidates. In all cases, the Board shall distribute funds to certified candidates in a manner that is expeditious, ensures accountability, and safeguards the integrity of the Fund. If the money in the Fund is insufficient to fully fund all certified candidates, then the available money shall be distributed proportionally, according to each candidate's eligible funding.

(10 ILCS 5/9A-30 new)

Sec. 9A-30. Reporting requirements.

(a) Any noncertified candidate with a certified opponent shall report total income, expenses, and obligations to the Board by facsimile machine or electronically within 24 hours after the total amount of campaign expenditures or obligations made, or funds raised or borrowed, exceeds 80% of the trigger for rescue funds as described in Section 9A-10. Any entity other than a candidate making expenditures in excess of $3,000 in support of or opposition to a certified candidate shall report the total funds received, spent, or obligated for those expenditures to the Board by facsimile machine or electronically within 24 hours after the total amount of expenditures or obligations made, or funds raised or borrowed, for the purpose of making the expenditures, exceeds 50% of the trigger for rescue funds. After this 24-hour filing, the noncertified candidate or the entity other than the candidate shall comply with an expedited reporting schedule by filing additional reports after receiving each additional amount in excess of $1,000 or after making or obligating to make each additional expenditure or expenditures in excess of $1,000. The schedule and forms for reports required by this subsection shall be made according to procedures developed by the Board.

(b) Notwithstanding other provisions of law, participating and certified candidates shall report any money received, including all previously unreported qualifying contributions, all campaign expenditures, all obligations, and all related activities to the Board according to procedures developed by the Board. A certified candidate who ceases to be certified or ceases to be a candidate or who loses an election shall file a final report with the Board and return any unspent revenues received from the Fund. In developing these procedures, the Board shall use existing campaign reporting procedures whenever practical.

(c) The Board shall ensure prompt public access to the reports received in accordance with this Article. The Board may use electronic means of reporting and storing information.

(10 ILCS 5/9A-35 new)

Sec. 9A-35. Rescue funds.

(a) When any report or group of reports shows that funds in opposition to a certified candidate or in support of an opponent to that candidate, as described in this Section, exceed the trigger for rescue funds as described in Section 9A-10, the Board shall issue immediately to that certified candidate an additional amount equal to the reported excess within the limits set forth in this Section. "Funds in opposition to a certified candidate or in support of an opponent to that candidate" shall be equal to the sum of the following:

(1) Campaign expenditures or obligations made, or funds raised or borrowed, whichever is greater, reported by any one uncertified opponent of a certified candidate. If a certified candidate has more than one uncertified opponent, the measure shall be taken from the uncertified candidate showing the highest relevant dollar amount.

(2) The sum of all expenditures reported in accordance with Section 9A-30 of entities other than candidates making expenditures in opposition to the certified candidate or in support of any opponent of that certified candidate.

(b) Total rescue funds to a certified candidate in a contested primary shall be limited to an amount equal to 2 times the maximum qualifying contributions for the office sought.

(c) Total rescue funds to a certified candidate in a contested general election shall be limited to an amount equal to 2 times the amount described in subsection (b)(4) of Section 9A-25.

(10 ILCS 5/9A-40 new)

Sec. 9A-40. Enforcement and administration.

(a) The Board, with the advice of the Advisory Council for the Illinois Public Campaign Financing Fund, shall administer the provisions of this Article.

(b) There is established under the Board the Advisory Council for the Illinois Public Campaign Financing Fund to advise the Board on the rules, procedures, and opinions it adopts for the enforcement and administration of this Article and on the funding needs and operation of the Illinois Public Campaign Financing Fund. The Advisory Council shall consist of 5 members to be appointed as follows:

(1) The Governor and Lieutenant Governor shall each name one member from a list of 5 nominees submitted by the State Chair of the political party with which the greatest number of registered voters in Illinois is affiliated.

(2) The Governor and Lieutenant Governor shall each name one member from a list of 5 nominees submitted by the State Chair of the political party with which the second greatest number of registered voters in Illinois is affiliated.

(3) The Board shall name one member by unanimous vote of all members of the Board. If the Board cannot reach unanimity on the appointment of that member, the Advisory Council shall consist of the remaining members.

No individual shall be eligible to be a member of the Advisory Council who would be ineligible to serve on a board of election commissioners in accordance with Article 6 or Article 6A. The initial members shall be appointed by December 1, 2009. Of the initial appointees, one by the Governor and one by the Lieutenant Governor, as determined by those appointing authorities, are appointed for one-year terms, one by the Governor and one by the Lieutenant Governor, as determined by those appointing authorities, are appointed for 2-year terms, and the member appointed by the Board is appointed for a 3-year term. Thereafter, appointees are appointed to serve 4-year terms. An individual may not serve more than 2 full terms. The appointed members shall receive no compensation but shall be reimbursed for reasonable expenses incurred in the performance of their duties. One of the Advisory Council members shall be elected by the members as Chair. A vacancy during an unexpired term shall be filled by the original appointing authority in the same manner as the regular appointment for that term, but a vacancy appointment is only for the unexpired portion of the term.

(c) The initial decision on an issue concerning qualification, certification, or distribution of funds under this Article shall be made by the Executive Director of the Board. The procedure for challenging that decision is as follows:

(1) An individual or entity aggrieved by a decision by the Executive Director of the Board may appeal to the full Board within 3 business days of the decision. The appeal shall be in writing and shall set forth the reasons for the appeal.

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

(d) The Board shall adopt rules and issue opinions to ensure effective administration of this Article. Those rules and opinions shall include, but not be limited to, procedures for obtaining qualifying contributions, certification of candidates, vacancies, recounts, withdrawals, replacements, collection of revenues for the Fund, distribution of Fund revenue to certified candidates, return of unspent Fund disbursements, and compliance with this Article. The Board shall adopt procedures for the distribution of rescue money that further the purpose and avoid the subversion of Section 9A-35. For races involving recounts, vacancies, withdrawals, or replacement candidates, the Board shall establish procedures for qualification, certification, disbursement of Fund revenues, and return of unspent Fund revenues. The Board shall fulfill each of these duties in consultation with the Advisory Council on the Illinois Public Campaign Financing Fund.

(e) The Advisory Council for the Illinois Public Campaign Financing Fund shall issue a report by March 1, 2011, and every 2 years thereafter that evaluates and makes recommendations about the implementation of this Article and the feasibility of expanding its provisions to include other candidates for State office based on the experience of the Fund and the experience of similar programs in other states. The Advisory Council shall also evaluate and make recommendations regarding how to address activities that could undermine the purpose of this Article, including spending that appears to target candidates receiving money from the Fund but that does not fall within this Article's reporting requirements.

(10 ILCS 5/9A-45 new)

Sec. 9A-45. Civil penalty. In addition to any other penalties that may be applicable, any individual, political committee, or other entity that violates any provision of this Article is subject to a civil penalty of up to $10,000 per violation or 3 times the amount of any financial transactions involved in the violation, whichever is greater. In addition to any fine, for good cause shown, a candidate found in violation of this Article may be required to return to the Fund all amounts distributed to the candidate from the Fund. If the Board makes a determination that a violation of this Article has occurred, the Board shall calculate and assess the amount of the civil penalty and shall notify the entity that is assessed the civil penalty of the amount that has been assessed. The Board shall then proceed as in the imposition of any civil penalty. In determining whether or not a candidate is in violation of this Article, the Board may consider as a mitigating factor any circumstances out of the candidate's control.

(10 ILCS 5/9A-50 new)

Sec. 9A-50. Contribution limits.

(a) No candidate shall accept, and no contributor shall make to that candidate, a contribution in any election exceeding $1,000 except as otherwise provided in this Section.

(b) A candidate may accept, and a family contributor may make to that candidate, a contribution not exceeding $2,000 in an election if the contributor is that candidate's parent, child, brother, or sister.

(c) No candidate shall accept, and no contributor shall make to that candidate, a contribution during the period beginning 21 days before the day of the general election and ending the day after the general election. This subsection applies with respect to a candidate opposed in the general election by a certified candidate who has not received the maximum rescue funds available under Section 9A-35. The recipient of a contribution that apparently violates this subsection has 3 days to return the contribution or file a detailed statement with the Board explaining why the contribution does not violate this subsection.

(d) Nothing in this Section shall prohibit a candidate or the spouse of that candidate from making a contribution or loan secured entirely by that individual's assets to that candidate's own campaign.

(e) Any individual, candidate, political committee, or other entity that violates the provisions of this Section is guilty of a Class 2 misdemeanor.

(10 ILCS 5/9A-55 new)

Sec. 9A-55. Attorneys-at-law contribution. The Supreme Court may, in its discretion, require attorneys, licensed to practice in Illinois, to make monetary contributions to the Illinois Public Campaign Financing Fund not to exceed $50 annually.

Section 10. The State Finance Act is amended by adding Section 5.719 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. Illinois Public Campaign Financing Fund.

Section 15. 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 Public Campaign Financing 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 Public Campaign Financing Fund, as authorized by this amendatory Act of the 96th 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 2010 and thereafter.

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

Sec. 509. Tax checkoff explanations. 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. the Healthy Smiles Fund,

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.

If, on October 1 of any year, the total contributions to any one of the funds made under this Article 5, except the Illinois Public Campaign Financing 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.

(Source: P.A. 94-73, eff. 6-23-05; 94-107, eff. 7-1-05; 94-141, eff. 1-1-06; 94-142, eff. 1-1-06; 94-442, eff. 8-4-05; 94-602, eff. 8-16-05; 94-649, eff. 8-22-05; 94-876, eff. 6-19-06; 95-331, eff. 8-21-07; 95-434, eff. 8-27-07; 95-435, eff. 8-27-07; 95-940, eff. 8-29-08; revised 9-25-08.)

Section 99. Effective date. This Act takes effect upon becoming law.